Page 48 - Yucaipa Valley Water District

Director Memorandum No. 18-022 Page 2 of 22

collaboratively develop funding to purchase supplemental water supplies adequate to ensure a
sustainable water supply, into the foreseeable future.

The GC Agreement includes an Equitable Allocation Model (EAM) developed by the Basin
Technical Advisory Committee (BTAC), the technical collaborative group that for years has been
cooperatively analyzing and developing policies for regional water management. The Equitable
Allocation Model is a methodology to share costs under the GC Agreement. It seeks to balance
historical water rights with current water demands on, and contributions to, basin water supplies.
While somewhat technical in expression, the EAM is a result of years of work by stakeholders in
the Basin. The EAM proportions the water cost based upon an agency’s “gap” between its own
supplies and demand. This method recognizes an agency’s investment in water conservation
and other supplies like surface water and recycled water. It represents a middle ground that
copes with the reality of present water use and supply, while recognizing historical efforts and
investments in developing water rights.

It also includes an Operations and Maintenance cost component for groundwater recharge
facilities. For GC participants, this O&M charge component will replace the San Bernardino Valley
Water Conservation District’s groundwater charges. The EAM proportions O&M costs based on
the most recent groundwater pumping patterns.

Together with the GC Agreement, the EAM represents the joint efforts major Basin producers to
fulfill the original principles of the sustainability process. The Groundwater Council formed by the
agreement will coordinate supplemental water purchases, primarily from the State Water Project.
These purchases will replace the current “ad hoc” method of water purchases, to implement more
strategic, long-range sustainability, and assure steady, reliable finding for facilities maintenance.

Participation in the GC is open to groundwater producers in the San Bernardino Basin Area. The
pumpers include: City of Colton, City of Redlands, City of Rialto, City of San Bernardino Municipal
Water Department, City of Loma Linda, East Valley Water District, West Valley Water District,
San Bernardino Valley Municipal Water District, San Bernardino Valley Water Conservation
District, Fontana Water Company, Western Municipal Water District, Yucaipa Valley Water
District, Bear Valley Mutual Water Company, and Loma Linda University. Membership is secured
by signing the Agreement.

The GC formation group intentionally developed the GC Agreement with limited powers. It also
defined the responsibilities and protections for the parties. The GC has limited authority and each
party’s board or council retains control and directs their executive’s participation.

Because the GC Agreement is proposed for a limited five (5) year initial term, the parties can
revisit the agreement as its workings evolve, and determine if any changes or extensions are
warranted. In addition, the GC Agreement, as written, requires an 80 percent (80%) supermajority
of weighted votes for budget and critical policy decisions in order to obtain consensus.

The GC Agreement has straightforward provisions for leadership, organization and budget. The
GC will develop its budget early in the calendar year so as harmonize with the parties’ respective
budgeting processes. A table and chart are attached with initial estimated costs and voting
weights, assuming full participation.

Yucaipa Valley Water District - February 6, 2018 - Page 48 of 175