Page 11 - Yucaipa Valley Water District
P. 11

Workshop Memorandum 17-071



                Date:          May 30, 2017

                From:          Joseph Zoba, General Manager

                Subject:       Overview of a Draft Resolution Setting the Methodology for Calculating a Facility
                               Capacity Charge Component Related to the Purchase of Supplemental Water from
                               the San Gorgonio Pass Water Agency


               On July 27, 2015, the Board of Directors of the San Gorgonio Pass Water Agency (“SGPWA”)
               adopted  Resolution  No.  2015-05  adopting  facility  capacity  fees  for  new  infrastructure  and
               additional  water  resources  (see  page  3  of  30).   The  adoption  of  this  resolution  was  deemed
               necessary byt the SGPWA to “…meet future increasing demands for SGPWA supplemental water
               to  the  SGPWA  service  area  which  will  require  additional  water  facilities  to  be  constructed  to
               distribute water and to acquire additional water rights to meet future increasing demands.”

               At the regular meeting of the City of Calimesa on May 2, 2016, the Calimesa council members
               reviewed a Cooperative Agreement for the Collection of Facility Capacity Fees by and Between
               San Gorgonio Pass Water Agency and [City] (see page 6 of 30).  Following a discussion about
               the draft cooperative agreement with the San Gorgonio Pass Water Agency, the Calimesa council
               members voted to "defer action and direct staff to continue working with all parties regarding a
               regional resolution on water supply".

               In summer 2016, a collaborative effort was put forth to draft an agreement that expressly achieved
               the goals of municipal agencies represented by:
                   •  Bonnie Johnson, City Manager, City of Calimesa;
                   •  Jeff Davis, General Manager, San Gorgonio Pass Water Agency; and
                   •  Joseph Zoba, General Manager, Yucaipa Valley Water District.

               After several months of discussions and negotiations, the group of managers developed the latest
               version of the Water Rights, Water Supply, and Facility Capacity Fee Collection Agreement (see
               page 13 of 30).  This agreement sets forth the process, conditions, and requirements needed to
               ensure development fees paid to the San Gorgonio Pass Water Agency result in water rights
               dedicated to Yucaipa Valley Water District prior to the City of Calimesa issues buiding permits.






                         San Gorgonio            Yucaipa Valley Water District       City of Calimesa
                      Pass Water Agency         •Purchase of permanent secured water   •Issuance of building permits based on
                 •Receipt of Capacity Fees from property   rights  dedicated by SGPWA to YVWD   secured and dedicated water supply to
                  owners for new development    for new development            YVWD for new development










                                     Yucaipa Valley Water District - May 30, 2017 - Page 11 of 138
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