Page 10 - Beaumont Basin Watermaster
P. 10

Member Zoba introduced the budget. Typically, invoices are sent
                                     to the Watermaster Committee members when a task order or
                                     special  project  is  approved,  or  administrative  funds  need
                                     replenishment.  As  such,  there is  no immediate  need  to  collect
                                     additional funds from the members.
                                     The current balance as of the end of April is $213,502 which is
                                     sufficient to continue, said Zoba.


                              It was moved by Member Jaggers and seconded by Member Jakher to
                              approve  the  budget  for  Fiscal  Year  2018-019  and  authorize  the
                              preparation of an Independent Accountant’s Financial Report for Fiscal
                              Year 2017-18.


                               AYES:                  Jaggers, Jakher, Jorritsma, Vela, Zoba
                               NOES:                  None.
                               ABSTAIN:               None.
                               ABSENT:                None.
                               STATUS:                Motion Approved



                          C.  Review of a Memorandum Regarding the Transfer and Conversion of
                              Overlying Water Rights to Appropriative Rights and Accounting for Such
                                     Legal  Counsel  Thierry  Montoya  noted  there  have  been  recent
                                     transfers  of  overlying  water  rights  to  appropriators.  Overlying
                                     rights  can  be  severed  and  sold,  consistent  with  California
                                     statutes. Once that happens, the right is no longer tied to the
                                     property and the interest can transfer. Outside of the judgment,
                                     the  right  becomes  an  appropriative  right.  Section  3  of  the
                                     judgment  regarding  adjustments  and  transfers  of  rights  is
                                     consistent  with  case  law  in  providing  an  overlying  party  shall
                                     forbear the use of the volume of the overlying right earmarked
                                     by an appropriative party; the appropriative party providing such
                                     service  shall  have  the  right  to  produce  the  volume  of  water
                                     forgone by the overlying party.

                                     Mr. Montoya continued; the appropriative nature takes place as
                                     set forth in a resolution, for example in the Oak Valley resolution.
                                     Once  water  service  is  provided  by  the  appropriator  for  that
                                     property, that amount then transfers to an appropriative right.
                                     Therefore, he admonished, it becomes very important to include
                                     in annual reports the columns advising the public and the Board
                                     what overlying rights were transferred, the total amount of the
                                     right, and what amount becomes a transferred appropriative right
                                     based on the dates of service, parcels being serviced, and the
                                     amounts.




               4667987.1 -- N1356.1
                                        Beaumont Basin Watermaster - August 1, 2018 - Page 10 of 31
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