__ Agree X Partially Disagree __ Disagree Response explanation (required for a response other than Agree): We agree

R3

The County Counsel’s impartial analysis of a revenue measure should clearly state whether the County Government’s use of the funds will be restricted to certain uses (special revenue), or is available for any legal purpose (general revenue). (F4)

R5

If the Santa Cruz County Board of Supervisors has formally established budget priorities for an upcoming revenue measure, the County Counsel’s impartial analysis should state this fact and note that the Board’s budget priorities are subject to change. (F5)

R4

The County Counsel’s impartial analysis of a revenue measure should explain how all aspects of the ballot measure will operate, including provisions for an annual audit or independent citizens oversight. (F6)

R6

By January 1, 2023, the Santa Cruz County Board of Supervisors should require that the County Administrative Office use its financial and budget tracking tools to provide more detail on the planned and actual use of Measure G funds than is shown in the Measure G Financial Summary of the County’s Adopted Budget for Fiscal Year 2021–22. (F7)

R7

By January 1, 2023, the Santa Cruz County Board of Supervisors should appoint a citizens oversight committee to oversee, review, and advise the Board on a more detailed Measure G report, showing Measure G revenues and expenditures as described in Finding 7 on a periodic basis (semiannually or quarterly). (F7, F8, F9) Commendation C1. The Grand Jury commends the County Administrative Office staff for its work in presenting the challenges of—and possible solutions to—the County’s persistent structural deficit. Words Matter—Did Measure G Mislead Voters? published June 20, 2022 210 Santa Cruz County Civil Grand Jury Required Response Respond Within/ Respondent Findings Recommendations Respond By Santa Cruz County F1, F2, F3, F7, F8, 90 Days

R7

By January 1, 2023, the Santa Cruz County Board of Supervisors should appoint a citizens oversight committee to oversee, review, and advise the Board on a more detailed Measure G report, showing Measure G revenues and expenditures as described in Finding 7 on a periodic basis (semiannually or quarterly). (F7, F8, F9) Commendation C1. The Grand Jury commends the County Administrative Office staff for its work in presenting the challenges of—and possible solutions to—the County’s persistent structural deficit. Words Matter—Did Measure G Mislead Voters? published June 20, 2022 210 Santa Cruz County Civil Grand Jury Required Response Respond Within/ Respondent Findings Recommendations Respond By Santa Cruz County F1, F2, F3, F7, F8, 90 Days

R7

By January 1, 2023, the Santa Cruz County Board of Supervisors should appoint a citizens oversight committee to oversee, review, and advise the Board on a more detailed Measure G report, showing Measure G revenues and expenditures as described in Finding 7 on a periodic basis (semiannually or quarterly). (F7, F8, F9) Commendation C1. The Grand Jury commends the County Administrative Office staff for its work in presenting the challenges of—and possible solutions to—the County’s persistent structural deficit. Words Matter—Did Measure G Mislead Voters? published June 20, 2022 210 Santa Cruz County Civil Grand Jury Required Response Respond Within/ Respondent Findings Recommendations Respond By Santa Cruz County F1, F2, F3, F7, F8, 90 Days

R2

By December 31, 2022, local water districts should jointly publish an integrated drought-resilience action plan that includes essential infrastructure improvements, estimated costs and schedule to complete improvements that will deliver drought resilience to the Mid-County Groundwater Basin, the City of Santa Cruz, and the Santa Margarita Basin by December 31, 2029. Agencies to respond are the San Lorenzo Water District, the Scotts Valley Water District, the City of Santa Cruz Water Department, the Soquel Creek Water District, the Santa Margarita Groundwater Management Agency, and the Mid-County Groundwater Management Agency. __ HAS BEEN IMPLEMENTED – summarize what has been done HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – __ summarize what will be done and the timeframe REQUIRES FURTHER ANALYSIS – explain the scope and timeframe __ (not to exceed six months) X WILL NOT BE IMPLEMENTED – explain why Required response explanation, summary, and timeframe: Through the District’s participation in the Santa Margarita Groundwater Agency (SMGWA), the District already has made significant contributions toward prioritizing a list of potential projects set forth in SMGWA’s recently adopted groundwater sustainability plan. The list includes inter-agency and regional projects that would have drought resiliency benefits. Additionally, the District has its own prioritized list of urgently needed infrastructure improvements. Some of these projects, such as the Fall Creek Fish Ladder, are part of the District’s ambitious Capital Improvement Plan. Some projects are being pursued in connection with the District’s proposed Conjunctive Use Plan, which, upon its adoption, would allow the District to operate its water systems more efficiently and put its Loch Lomond allotment to use, with benefits for water supply resiliency and fisheries. Other projects, such as the Five Mile Pipeline reconstruction and several potential water system consolidations, are part of the District’s ongoing recovery from the CZU wildfire emergency and effort to assist our neighbors who were badly impacted by the wildfire. The District is deeply committed to such projects and collaborating with its neighbors and other partners such as state and federal funding sources to achieve them. In light of the already extraordinary demands placed on District resources by these projects and other mission-critical priorities, the District is not in a position to invest in a County-wide integrated drought-resilience action plan. Our Water Account Is Overdrawn Published on May 24, 2022 186 Santa Cruz County Civil Grand Jury [This page intentionally left blank.] [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 187 Santa Cruz Grand Jury LAFCO Response Letter dated 8-4-22 Joe Serrano Aug 4, 2022, 10:49:38 AM to [email protected], [email protected] Good Morning Honorable Judge Cogliati, As requested, attached is a letter from LAFCO responding to the Grand Jury’s request to address three findings and one recommendation found in the report titled “On Achieving Drought Resilience.” Thank you for the opportunity to provide comments. Let me know if you have any questions. -Joe Joe A. Serrano Executive Officer Local Agency Formation Commission of Santa Cruz County 701 Ocean Street, Room 318-D, Santa Cruz, CA 95060 Email: [email protected] Phone: (831) 454-2055 8-4-22 LAFCO Response Letter.pdf 228 KB 188 Santa Cruz County Civil Grand Jury Santa Cruz Local Agency Formation Commission 701 Ocean Street # 318D Santa Cruz CA 95060 Phone: (831) 454-2055 Email: [email protected] Website: www.santacruzlafco.org August 4, 2022 The Honorable Judge Syda Cogliati Santa Cruz Courthouse 701 Ocean Street Santa Cruz, CA 95060 Subject: LAFCO Response to the Grand Jury’s “Our Water Account Is Overdrawn –Beyond Conservation: Achieving Drought Resilience” Report Dear Honorable Judge Cogliati: Thank you for this opportunity to comment on the Grand Jury’s report titled “Our Water Account Is Overdrawn – Beyond Conservation: Achieving Drought Resilience.” This report reviewed the water supply and long-term planning of the water agencies in Santa Cruz County and requested that the Local Agency Formation Commission (“LAFCO”) provide comments. LAFCO’s statutory authority is derived from the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000 (Government Code section 56000, et seq.). Among LAFCO’s purposes are: Discouraging urban sprawl, preserving open space and prime agricultural lands, efficiently providing government services, and encouraging the orderly formation and development of local agencies based upon local conditions and circumstances (Government Code Section 56301). The Cortese-Knox-Hertzberg Act identifies factors that must be considered, and determinations that must be made, as part of LAFCO’s review of boundary changes and service reviews. These provisions of law are the legislative basis for LAFCO’s locally adopted Policies and Procedures Relating to Spheres of Influence and Changes of Organization. These policies establish guidelines for the Commission and staff. The adopted policies are available on LAFCO’s website: https://santacruzlafco.org/about/policies-procedures/. In order to fulfill the request to provide comments on the Grand Jury’s report, LAFCO’s comments will be based on the direction found in the Cortese-Knox-Hertzberg Act and the Commission’s adopted policies. 1. Finding (F10): The individual water supply districts lack funding, resources, and charters to develop county-centric drought-resilience infrastructure. PARTIALLY DISAGREE: LAFCO recently completed a Countywide Water Service & Sphere Review involving the nine water agencies in Santa Cruz County. Only one of the nine water agencies was determined to be in severely understaffed, financially distressed, and lacking necessary resources. LAFCO believes that the remaining active water agencies are financially sound and equipped to operate an efficient special district. LAFCO encourages the water agencies to continue exploring opportunities to collaborate. Strategic partnerships among the water agencies and the County may help develop county-centric drought-resilience planning at a holistic level rather than standalone efforts. [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 189 2. Finding (F11): The Groundwater Sustainability Management agencies lack the charters, staff, and resources to plan or execute a county-wide drought- resilience strategy. PARTIALLY DISAGREE: The Sustainable Groundwater Management Act (SMGA) was signed by Governor Jerry Brown on September 16, 2014, and went into effect on January 1, 2015. Since then, three groundwater management agencies were formed in Santa Cruz County, as listed below. The three groundwater agencies include representatives from several local water agencies. It is LAFCO’s understanding that the listed agencies have developed long-term plans under their respective groundwater agencies. Such collaboration indicates that the water agencies are capable of developing countywide plans beyond their standalone boundaries. Groundwater Associated Agency Basin Agencies Basins Members Management Plan Pajaro Valley Water Latest Plan Corralitos Pajaro Valley Management adopted in Groundwater Basin Agency November 20211 County of Santa Santa Cruz Mid- Cruz; CWD; Latest Plan Santa Cruz County SqCWD; adopted in Mid-County Groundwater Basin and the City of November 20192 Santa Cruz County; San Latest Plan Santa Santa Margarita Lorenzo Valley and adopted in Margarita Groundwater Basin Scotts Valley Water November 20213 Districts 3. Finding (F12): There is no county-level agency chartered to plan, propose, or build regional district-spanning drought-resilience infrastructure. AGREE: It is LAFCO’s understanding that there is no county-level agency chartered to plan, propose, or build regional district-spanning drought-resilience infrastructure. However, the law does not restrict the County and the water agencies to develop a countywide plan under a Memorandum of Understanding, Joint Powers Agreement, and/or other methodology. This may be an opportunity for the affected agencies to explore this countywide planning effort. 4. Recommendation (R1): By December 31, 2022, the Boards of the Santa Margarita Groundwater Management Agency and the Mid-County Groundwater Management Agency should extend their charters to include and proactively deliver drought-resilience project planning and execution. WILL NOT BE IMPLEMENTED: LAFCO has not purview over the groundwater management agencies, and therefore, cannot implement or require the groundwater management agencies to include a drought-resilience project planning and execution. However, it is LAFCO’s understanding that the County is currently working on a 1 PVWMA BMP - https://www.pvwater.org/images/about-pvwma/assets/SGM/GSU22_20211229_MainBody-web.pdf 2 SCMCGA BMP - https://www.midcountygroundwater.org/sites/default/files/uploads/MGA_GSP_2019.pdf 3 SMGA BMP - https://www.smgwa.org/media/GroundwaterSustainabilityPlan/SMGB_GSP_Final_2021-11-11.pdf 190 Santa Cruz County Civil Grand Jury drought-related report that will fulfill the requirements under Senate Bill 552 (SB 552). This bill was passed and signed by Governor Gavin Newsom in September 2021 for the purpose of State and local governments sharing the responsibility in preparing and acting in the case of a water shortage event. These new requirements are expected to improve the ability of Californians to manage future droughts and help prevent catastrophic impacts on drinking water for communities vulnerable to impacts of climate change. The bill outlines the new requirements for small water suppliers, county governments, Department of Water Resources, and the State Water Board to implement more proactive drought planning and be better prepared for future water shortage events or dry years. Each county, in accordance with SB 552, is required to have a standing drought task force to facilitate drought and water shortage preparedness for state small water systems (serving 5 to 14 connections), domestic wells, and other privately supplied homes within the county’s jurisdiction. Each county must also develop a plan demonstrating the potential drought and water shortage risk and proposed interim and long-term solutions for state small water systems and domestic wells within the county. Both of these requirements may be implemented as part of other existing committees and/or planning processes4. I want to thank you once again for this opportunity to comment on the Grand Jury’s recent water report. LAFCO also recently developed a water report that analyzes the nine water agencies in Santa Cruz County. This countywide report is now available on LAFCO’s website: https://santacruzlafco.org/reviews/. I encourage the Grand Jury to review this report and continue collaborating with LAFCO on these important issues. Feel free to contact me if you have any questions. I can be reached by email ([email protected]) or by phone (831-454-2055). Sincerely, Joe A. Serrano Executive Officer 4 SB 552 Information: https://water.ca.gov/Programs/Water-Use-And-Efficiency/SB- 552#:~:text=SB%20552%20requires%20small%20water,to%20drought%20resilient%20standards%2C%20if [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 191 Words Matter Did Measure G Mislead Voters? “The problem [with ballot proposals] is that local officials are so vested in the outcome that they are frequently incapable of providing voters the impartial descriptions they deserve.” —Daniel Borenstein, The Mercury News

R2

By December 31, 2022, local water districts should jointly publish an integrated drought-resilience action plan that includes essential infrastructure improvements, estimated costs and schedule to complete improvements that will deliver drought resilience to the Mid-County Groundwater Basin, the City of Santa Cruz, and the Santa Margarita Basin by December 31, 2029. Agencies to respond are the San Lorenzo Water District, the Scotts Valley Water District, the City of Santa Cruz Water Department, the Soquel Creek Water District, the Santa Margarita Groundwater Management Agency, and the Mid-County Groundwater Management Agency. __ HAS BEEN IMPLEMENTED – summarize what has been done HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – __ summarize what will be done and the timeframe REQUIRES FURTHER ANALYSIS – explain the scope and timeframe __ (not to exceed six months) X WILL NOT BE IMPLEMENTED – explain why Required response explanation, summary, and timeframe: Through the District’s participation in the Santa Margarita Groundwater Agency (SMGWA), the District already has made significant contributions toward prioritizing a list of potential projects set forth in SMGWA’s recently adopted groundwater sustainability plan. The list includes inter-agency and regional projects that would have drought resiliency benefits. Additionally, the District has its own prioritized list of urgently needed infrastructure improvements. Some of these projects, such as the Fall Creek Fish Ladder, are part of the District’s ambitious Capital Improvement Plan. Some projects are being pursued in connection with the District’s proposed Conjunctive Use Plan, which, upon its adoption, would allow the District to operate its water systems more efficiently and put its Loch Lomond allotment to use, with benefits for water supply resiliency and fisheries. Other projects, such as the Five Mile Pipeline reconstruction and several potential water system consolidations, are part of the District’s ongoing recovery from the CZU wildfire emergency and effort to assist our neighbors who were badly impacted by the wildfire. The District is deeply committed to such projects and collaborating with its neighbors and other partners such as state and federal funding sources to achieve them. In light of the already extraordinary demands placed on District resources by these projects and other mission-critical priorities, the District is not in a position to invest in a County-wide integrated drought-resilience action plan. Our Water Account Is Overdrawn Published on May 24, 2022 186 Santa Cruz County Civil Grand Jury [This page intentionally left blank.] [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 187 Santa Cruz Grand Jury LAFCO Response Letter dated 8-4-22 Joe Serrano Aug 4, 2022, 10:49:38 AM to [email protected], [email protected] Good Morning Honorable Judge Cogliati, As requested, attached is a letter from LAFCO responding to the Grand Jury’s request to address three findings and one recommendation found in the report titled “On Achieving Drought Resilience.” Thank you for the opportunity to provide comments. Let me know if you have any questions. -Joe Joe A. Serrano Executive Officer Local Agency Formation Commission of Santa Cruz County 701 Ocean Street, Room 318-D, Santa Cruz, CA 95060 Email: [email protected] Phone: (831) 454-2055 8-4-22 LAFCO Response Letter.pdf 228 KB 188 Santa Cruz County Civil Grand Jury Santa Cruz Local Agency Formation Commission 701 Ocean Street # 318D Santa Cruz CA 95060 Phone: (831) 454-2055 Email: [email protected] Website: www.santacruzlafco.org August 4, 2022 The Honorable Judge Syda Cogliati Santa Cruz Courthouse 701 Ocean Street Santa Cruz, CA 95060 Subject: LAFCO Response to the Grand Jury’s “Our Water Account Is Overdrawn –Beyond Conservation: Achieving Drought Resilience” Report Dear Honorable Judge Cogliati: Thank you for this opportunity to comment on the Grand Jury’s report titled “Our Water Account Is Overdrawn – Beyond Conservation: Achieving Drought Resilience.” This report reviewed the water supply and long-term planning of the water agencies in Santa Cruz County and requested that the Local Agency Formation Commission (“LAFCO”) provide comments. LAFCO’s statutory authority is derived from the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000 (Government Code section 56000, et seq.). Among LAFCO’s purposes are: Discouraging urban sprawl, preserving open space and prime agricultural lands, efficiently providing government services, and encouraging the orderly formation and development of local agencies based upon local conditions and circumstances (Government Code Section 56301). The Cortese-Knox-Hertzberg Act identifies factors that must be considered, and determinations that must be made, as part of LAFCO’s review of boundary changes and service reviews. These provisions of law are the legislative basis for LAFCO’s locally adopted Policies and Procedures Relating to Spheres of Influence and Changes of Organization. These policies establish guidelines for the Commission and staff. The adopted policies are available on LAFCO’s website: https://santacruzlafco.org/about/policies-procedures/. In order to fulfill the request to provide comments on the Grand Jury’s report, LAFCO’s comments will be based on the direction found in the Cortese-Knox-Hertzberg Act and the Commission’s adopted policies. 1. Finding (F10): The individual water supply districts lack funding, resources, and charters to develop county-centric drought-resilience infrastructure. PARTIALLY DISAGREE: LAFCO recently completed a Countywide Water Service & Sphere Review involving the nine water agencies in Santa Cruz County. Only one of the nine water agencies was determined to be in severely understaffed, financially distressed, and lacking necessary resources. LAFCO believes that the remaining active water agencies are financially sound and equipped to operate an efficient special district. LAFCO encourages the water agencies to continue exploring opportunities to collaborate. Strategic partnerships among the water agencies and the County may help develop county-centric drought-resilience planning at a holistic level rather than standalone efforts. [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 189 2. Finding (F11): The Groundwater Sustainability Management agencies lack the charters, staff, and resources to plan or execute a county-wide drought- resilience strategy. PARTIALLY DISAGREE: The Sustainable Groundwater Management Act (SMGA) was signed by Governor Jerry Brown on September 16, 2014, and went into effect on January 1, 2015. Since then, three groundwater management agencies were formed in Santa Cruz County, as listed below. The three groundwater agencies include representatives from several local water agencies. It is LAFCO’s understanding that the listed agencies have developed long-term plans under their respective groundwater agencies. Such collaboration indicates that the water agencies are capable of developing countywide plans beyond their standalone boundaries. Groundwater Associated Agency Basin Agencies Basins Members Management Plan Pajaro Valley Water Latest Plan Corralitos Pajaro Valley Management adopted in Groundwater Basin Agency November 20211 County of Santa Santa Cruz Mid- Cruz; CWD; Latest Plan Santa Cruz County SqCWD; adopted in Mid-County Groundwater Basin and the City of November 20192 Santa Cruz County; San Latest Plan Santa Santa Margarita Lorenzo Valley and adopted in Margarita Groundwater Basin Scotts Valley Water November 20213 Districts 3. Finding (F12): There is no county-level agency chartered to plan, propose, or build regional district-spanning drought-resilience infrastructure. AGREE: It is LAFCO’s understanding that there is no county-level agency chartered to plan, propose, or build regional district-spanning drought-resilience infrastructure. However, the law does not restrict the County and the water agencies to develop a countywide plan under a Memorandum of Understanding, Joint Powers Agreement, and/or other methodology. This may be an opportunity for the affected agencies to explore this countywide planning effort. 4. Recommendation (R1): By December 31, 2022, the Boards of the Santa Margarita Groundwater Management Agency and the Mid-County Groundwater Management Agency should extend their charters to include and proactively deliver drought-resilience project planning and execution. WILL NOT BE IMPLEMENTED: LAFCO has not purview over the groundwater management agencies, and therefore, cannot implement or require the groundwater management agencies to include a drought-resilience project planning and execution. However, it is LAFCO’s understanding that the County is currently working on a 1 PVWMA BMP - https://www.pvwater.org/images/about-pvwma/assets/SGM/GSU22_20211229_MainBody-web.pdf 2 SCMCGA BMP - https://www.midcountygroundwater.org/sites/default/files/uploads/MGA_GSP_2019.pdf 3 SMGA BMP - https://www.smgwa.org/media/GroundwaterSustainabilityPlan/SMGB_GSP_Final_2021-11-11.pdf 190 Santa Cruz County Civil Grand Jury drought-related report that will fulfill the requirements under Senate Bill 552 (SB 552). This bill was passed and signed by Governor Gavin Newsom in September 2021 for the purpose of State and local governments sharing the responsibility in preparing and acting in the case of a water shortage event. These new requirements are expected to improve the ability of Californians to manage future droughts and help prevent catastrophic impacts on drinking water for communities vulnerable to impacts of climate change. The bill outlines the new requirements for small water suppliers, county governments, Department of Water Resources, and the State Water Board to implement more proactive drought planning and be better prepared for future water shortage events or dry years. Each county, in accordance with SB 552, is required to have a standing drought task force to facilitate drought and water shortage preparedness for state small water systems (serving 5 to 14 connections), domestic wells, and other privately supplied homes within the county’s jurisdiction. Each county must also develop a plan demonstrating the potential drought and water shortage risk and proposed interim and long-term solutions for state small water systems and domestic wells within the county. Both of these requirements may be implemented as part of other existing committees and/or planning processes4. I want to thank you once again for this opportunity to comment on the Grand Jury’s recent water report. LAFCO also recently developed a water report that analyzes the nine water agencies in Santa Cruz County. This countywide report is now available on LAFCO’s website: https://santacruzlafco.org/reviews/. I encourage the Grand Jury to review this report and continue collaborating with LAFCO on these important issues. Feel free to contact me if you have any questions. I can be reached by email ([email protected]) or by phone (831-454-2055). Sincerely, Joe A. Serrano Executive Officer 4 SB 552 Information: https://water.ca.gov/Programs/Water-Use-And-Efficiency/SB- 552#:~:text=SB%20552%20requires%20small%20water,to%20drought%20resilient%20standards%2C%20if [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 191 Words Matter Did Measure G Mislead Voters? “The problem [with ballot proposals] is that local officials are so vested in the outcome that they are frequently incapable of providing voters the impartial descriptions they deserve.” —Daniel Borenstein, The Mercury News

R2

By December 31, 2022, local water districts should jointly publish an integrated drought-resilience action plan that includes essential infrastructure improvements, estimated costs and schedule to complete improvements that will deliver drought resilience to the Mid-County Groundwater Basin, the City of Santa Cruz, and the Santa Margarita Basin by December 31, 2029. Agencies to respond are the San Lorenzo Water District, the Scotts Valley Water District, the City of Santa Cruz Water Department, the Soquel Creek Water District, the Santa Margarita Groundwater Management Agency, and the Mid-County Groundwater Management Agency. __ HAS BEEN IMPLEMENTED – summarize what has been done HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – __ summarize what will be done and the timeframe REQUIRES FURTHER ANALYSIS – explain the scope and timeframe __ (not to exceed six months) X WILL NOT BE IMPLEMENTED – explain why Required response explanation, summary, and timeframe: Through the District’s participation in the Santa Margarita Groundwater Agency (SMGWA), the District already has made significant contributions toward prioritizing a list of potential projects set forth in SMGWA’s recently adopted groundwater sustainability plan. The list includes inter-agency and regional projects that would have drought resiliency benefits. Additionally, the District has its own prioritized list of urgently needed infrastructure improvements. Some of these projects, such as the Fall Creek Fish Ladder, are part of the District’s ambitious Capital Improvement Plan. Some projects are being pursued in connection with the District’s proposed Conjunctive Use Plan, which, upon its adoption, would allow the District to operate its water systems more efficiently and put its Loch Lomond allotment to use, with benefits for water supply resiliency and fisheries. Other projects, such as the Five Mile Pipeline reconstruction and several potential water system consolidations, are part of the District’s ongoing recovery from the CZU wildfire emergency and effort to assist our neighbors who were badly impacted by the wildfire. The District is deeply committed to such projects and collaborating with its neighbors and other partners such as state and federal funding sources to achieve them. In light of the already extraordinary demands placed on District resources by these projects and other mission-critical priorities, the District is not in a position to invest in a County-wide integrated drought-resilience action plan. Our Water Account Is Overdrawn Published on May 24, 2022 186 Santa Cruz County Civil Grand Jury [This page intentionally left blank.] [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 187 Santa Cruz Grand Jury LAFCO Response Letter dated 8-4-22 Joe Serrano Aug 4, 2022, 10:49:38 AM to [email protected], [email protected] Good Morning Honorable Judge Cogliati, As requested, attached is a letter from LAFCO responding to the Grand Jury’s request to address three findings and one recommendation found in the report titled “On Achieving Drought Resilience.” Thank you for the opportunity to provide comments. Let me know if you have any questions. -Joe Joe A. Serrano Executive Officer Local Agency Formation Commission of Santa Cruz County 701 Ocean Street, Room 318-D, Santa Cruz, CA 95060 Email: [email protected] Phone: (831) 454-2055 8-4-22 LAFCO Response Letter.pdf 228 KB 188 Santa Cruz County Civil Grand Jury Santa Cruz Local Agency Formation Commission 701 Ocean Street # 318D Santa Cruz CA 95060 Phone: (831) 454-2055 Email: [email protected] Website: www.santacruzlafco.org August 4, 2022 The Honorable Judge Syda Cogliati Santa Cruz Courthouse 701 Ocean Street Santa Cruz, CA 95060 Subject: LAFCO Response to the Grand Jury’s “Our Water Account Is Overdrawn –Beyond Conservation: Achieving Drought Resilience” Report Dear Honorable Judge Cogliati: Thank you for this opportunity to comment on the Grand Jury’s report titled “Our Water Account Is Overdrawn – Beyond Conservation: Achieving Drought Resilience.” This report reviewed the water supply and long-term planning of the water agencies in Santa Cruz County and requested that the Local Agency Formation Commission (“LAFCO”) provide comments. LAFCO’s statutory authority is derived from the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000 (Government Code section 56000, et seq.). Among LAFCO’s purposes are: Discouraging urban sprawl, preserving open space and prime agricultural lands, efficiently providing government services, and encouraging the orderly formation and development of local agencies based upon local conditions and circumstances (Government Code Section 56301). The Cortese-Knox-Hertzberg Act identifies factors that must be considered, and determinations that must be made, as part of LAFCO’s review of boundary changes and service reviews. These provisions of law are the legislative basis for LAFCO’s locally adopted Policies and Procedures Relating to Spheres of Influence and Changes of Organization. These policies establish guidelines for the Commission and staff. The adopted policies are available on LAFCO’s website: https://santacruzlafco.org/about/policies-procedures/. In order to fulfill the request to provide comments on the Grand Jury’s report, LAFCO’s comments will be based on the direction found in the Cortese-Knox-Hertzberg Act and the Commission’s adopted policies. 1. Finding (F10): The individual water supply districts lack funding, resources, and charters to develop county-centric drought-resilience infrastructure. PARTIALLY DISAGREE: LAFCO recently completed a Countywide Water Service & Sphere Review involving the nine water agencies in Santa Cruz County. Only one of the nine water agencies was determined to be in severely understaffed, financially distressed, and lacking necessary resources. LAFCO believes that the remaining active water agencies are financially sound and equipped to operate an efficient special district. LAFCO encourages the water agencies to continue exploring opportunities to collaborate. Strategic partnerships among the water agencies and the County may help develop county-centric drought-resilience planning at a holistic level rather than standalone efforts. [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 189 2. Finding (F11): The Groundwater Sustainability Management agencies lack the charters, staff, and resources to plan or execute a county-wide drought- resilience strategy. PARTIALLY DISAGREE: The Sustainable Groundwater Management Act (SMGA) was signed by Governor Jerry Brown on September 16, 2014, and went into effect on January 1, 2015. Since then, three groundwater management agencies were formed in Santa Cruz County, as listed below. The three groundwater agencies include representatives from several local water agencies. It is LAFCO’s understanding that the listed agencies have developed long-term plans under their respective groundwater agencies. Such collaboration indicates that the water agencies are capable of developing countywide plans beyond their standalone boundaries. Groundwater Associated Agency Basin Agencies Basins Members Management Plan Pajaro Valley Water Latest Plan Corralitos Pajaro Valley Management adopted in Groundwater Basin Agency November 20211 County of Santa Santa Cruz Mid- Cruz; CWD; Latest Plan Santa Cruz County SqCWD; adopted in Mid-County Groundwater Basin and the City of November 20192 Santa Cruz County; San Latest Plan Santa Santa Margarita Lorenzo Valley and adopted in Margarita Groundwater Basin Scotts Valley Water November 20213 Districts 3. Finding (F12): There is no county-level agency chartered to plan, propose, or build regional district-spanning drought-resilience infrastructure. AGREE: It is LAFCO’s understanding that there is no county-level agency chartered to plan, propose, or build regional district-spanning drought-resilience infrastructure. However, the law does not restrict the County and the water agencies to develop a countywide plan under a Memorandum of Understanding, Joint Powers Agreement, and/or other methodology. This may be an opportunity for the affected agencies to explore this countywide planning effort. 4. Recommendation (R1): By December 31, 2022, the Boards of the Santa Margarita Groundwater Management Agency and the Mid-County Groundwater Management Agency should extend their charters to include and proactively deliver drought-resilience project planning and execution. WILL NOT BE IMPLEMENTED: LAFCO has not purview over the groundwater management agencies, and therefore, cannot implement or require the groundwater management agencies to include a drought-resilience project planning and execution. However, it is LAFCO’s understanding that the County is currently working on a 1 PVWMA BMP - https://www.pvwater.org/images/about-pvwma/assets/SGM/GSU22_20211229_MainBody-web.pdf 2 SCMCGA BMP - https://www.midcountygroundwater.org/sites/default/files/uploads/MGA_GSP_2019.pdf 3 SMGA BMP - https://www.smgwa.org/media/GroundwaterSustainabilityPlan/SMGB_GSP_Final_2021-11-11.pdf 190 Santa Cruz County Civil Grand Jury drought-related report that will fulfill the requirements under Senate Bill 552 (SB 552). This bill was passed and signed by Governor Gavin Newsom in September 2021 for the purpose of State and local governments sharing the responsibility in preparing and acting in the case of a water shortage event. These new requirements are expected to improve the ability of Californians to manage future droughts and help prevent catastrophic impacts on drinking water for communities vulnerable to impacts of climate change. The bill outlines the new requirements for small water suppliers, county governments, Department of Water Resources, and the State Water Board to implement more proactive drought planning and be better prepared for future water shortage events or dry years. Each county, in accordance with SB 552, is required to have a standing drought task force to facilitate drought and water shortage preparedness for state small water systems (serving 5 to 14 connections), domestic wells, and other privately supplied homes within the county’s jurisdiction. Each county must also develop a plan demonstrating the potential drought and water shortage risk and proposed interim and long-term solutions for state small water systems and domestic wells within the county. Both of these requirements may be implemented as part of other existing committees and/or planning processes4. I want to thank you once again for this opportunity to comment on the Grand Jury’s recent water report. LAFCO also recently developed a water report that analyzes the nine water agencies in Santa Cruz County. This countywide report is now available on LAFCO’s website: https://santacruzlafco.org/reviews/. I encourage the Grand Jury to review this report and continue collaborating with LAFCO on these important issues. Feel free to contact me if you have any questions. I can be reached by email ([email protected]) or by phone (831-454-2055). Sincerely, Joe A. Serrano Executive Officer 4 SB 552 Information: https://water.ca.gov/Programs/Water-Use-And-Efficiency/SB- 552#:~:text=SB%20552%20requires%20small%20water,to%20drought%20resilient%20standards%2C%20if [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 191 Words Matter Did Measure G Mislead Voters? “The problem [with ballot proposals] is that local officials are so vested in the outcome that they are frequently incapable of providing voters the impartial descriptions they deserve.” —Daniel Borenstein, The Mercury News