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Director Memorandum 18-022



                Date:              February 6, 2018

                Prepared By:       Joseph Zoba, General Manager

                Subject:           Discussion  and  Consideration  of the  San  Bernardino  Basin  Groundwater
                                   Council Framework Agreement

                Recommendation:        That the Board  authorizes the General Manager to execute the  San
                                       Bernardino Basin Groundwater Council Framework Agreement.


               The San Bernardino Valley has experienced historically low rainfall and hot summers, causing a
               drought of some 20 years, and counting.  The groundwater storage levels in the San Bernardino
               Basin are at an all time low.  The San Bernardino Valley Regional Urban Water Management Plan
               shows that the valley does not have enough local water supplies to meet the projected demands
               into  the  future.  Statewide,  this  recent  drought  caused  the  Governor  to  declare  a  state  of
               emergency.

               As a result, the California Legislature enacted the Sustainable Groundwater Management Act of
               2014 (SGMA), in September 2014. This act established a statewide framework for the sustainable
               management  of  groundwater  resources,  which  focuses  on  granting  new  authorities  and
               responsibilities to local agencies. Ensuring water supply reliability and long-term groundwater
               sustainability  has  become  even  more  important  as  a result  of the  long-term  drought  and  the
               reduced availability of State Project Water from Northern California. While adjudicated basins
               such as the San Bernardino Basin Area (SBBA), including the Bunker Hill Groundwater Basin,
               are not subject to most provisions of the act, water managers are expected to manage the SBBA
               in accordance with the sustainability principals to avoid deleterious impacts on the basin.

               In 2015, local water agencies began meeting to identify and develop a Groundwater Sustainability
               Council for the SBBA, now known as the Groundwater Council (GC).  Many agencies and cities
               approved a Memorandum of Understanding in November, 2015, agreeing to develop this GC.
               The goals of the GC formation group were to identify the water resources to ensure a sustainable
               water supply into the future, and to equitably share the cost of those resources amongst the
               pumpers.

               The  underlying  principles  that  drove  this  effort  were  that  the  groundwater  basin  is  a  shared
               resource, and we all have a shared responsibility to avoid the classic “tragedy of the commons,”
               where this responsibility is being shouldered by some but not all groundwater producers. In the
               dozens of meetings over the past two years, and hundreds of hours invested by the organizers,
               two primary products were developed: 1) a method to equitably allocate the costs of sustainable
               basin management, and 2) a five-year agreement (GC Agreement) that lays out an organizational
               structure to administer the process.

               These principles, and the procedures developed to implement them, have been incorporated into
               a “San Bernardino Basin Groundwater Council Framework Agreement,” which is now submitted
               for  the  for  review  and  approval.    Signing  the  GC  Agreement  represents  a  commitment  to





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