County of SAN Luis Obispo Board of Supervisors Agenda Item Transmittal (1) Department (2) Meeting Date (3)

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- County Public Works: There have been increases in charges related to "administration and accounting", as the State Water system has seen increased new and important work efforts over the last decade. There are three "Levels" of State Water Project (SWP) Project Administration and Accounting work for the District - 1) District, 2) Central Coast Regional, and 3) State. The following list is a sample of work related to the State Water system: District Level - Subcontractor coordination o Delivery operational coordination, tracking/reporting of annual delivery requests, and processing of requested changes mid-year. o Subcontract updates or inquiries on supply availability or management options (e.g., Processing of drought buffer requests) State Water Subcontractors Advisory Committee Bi-monthly committee meetings to review SWP water supply and delivery operations 0 and to discuss updates/ongoing matters that pertain to the management of the supply - matters that pertain to the District's administration of the contracts. Responding to public inquiries related to the SWP water system or SWP supply use or availability. Utilities Division/Finance Division staff support for Department of Water Resources (DWR) and Central Coast Water Authority (CCWA) invoicing to facilitate District/Subcontractor reimbursement of SWP costs. District planning/coordination efforts related to full allocation of SWP water – i.e., to fully utilize the "excess" (unsubscribed) SWP allocation, for current Subcontractors and also local agencies who are not subcontractors but exploring possibility of utilizing District's available SWP supplies (e.g., Cal Poly, Los Osos Community Services District, local Groundwater Sustainability Agency needs, local drought mitigation needs, etc.) - Coordination with County Operations Center - hub for untraditional uses of District's SWP (e.g., O'Connor Fill Station to address local emergency needs) Regional planning efforts (District's Regional Resiliency Planning Study 2020-2021; Water Management Tools Study with CCWA 2020-2022) Central Coast Level SWP Operations Management Coordination w/CCWA Coordination of local delivery operations and reporting/review (ongoing, routine) with CCWA, occasional participation at their Board or Operating Committee meeting to address questions, speak to issues, or coordinate on operations (e.g., operations staffing and agency coordination/planning to address COVID-19 or local delivery needs during operational changes or maintenance shutdowns). Coordinated review of DWR's SWP Coastal Branch operation financials with Ernst & Young, an independent 3rd party auditor. Completion of a Water Management Tools Study (2020-2022), coordinated with CCWA to understand new management opportunities based on the flexibility provided in the proposed WMT Amendment that would allow the District and CCWA to maximize the benefits of SWP water supplies for the Central Coast (service areas covering San Luis Obispo and Santa Barbara Counties ). Development of a water exchange agreement with CCWA / Santa Barbara County during the 2015-16 drought years; and again, during the 2021-22 drought years – to provide SLO County & Santa Barbara Counties with the ability to use SWP water for local drought mitigation. State Level SWP Project Coordination/Representation for SLO District with State Water Contractors (SWC) & DWR - state-wide coordination, inter-agency review/monitoring of SWP Project operations - SWC-DWR Water Operations Committee – monthly (Dec – May), unless otherwise needed (e.g., for drought coordination). Wet weather delivery operations coordination (2017, 2019 - San Luis Reservoir spill / Article 21 water requests) Drought operations/coordination with SWC/DWR (2012-2016; 2020-2022) SWC-DWR Audit-Finance Committee for SWP Operations – monitoring/tracking of project financials (capital and O&M costs), annual operational priorities, energy costs & considerations (e.g., annual Statement of Charges determination and billing to Contractors; 2017 Oroville Spillway Incident – repair costs and FEMA reimbursement considerations) (District participation on an as-available/as-needed basis). - SWC Monthly coordination meetings with the SWP Contractors at large. Informational updates on DWR and SWC initiatives to operate and maintain the project responsibly, protect water rights, and monitor/coordinate on SWP priorities/policy considerations. (District participation on an as-available/as-needed basis) SWC Board meeting (monthly) - for tracking of SWC board action items, policy decisions/priorities, initiatives, financial considerations. (District participation on an as-available/as-needed basis) Delta Conveyance Project Participation District representation, and monitoring/tracking of the negotiated principles for a 0 contract amendment to support a potential project envisioned to protect/preserve the long-term SWP water supply by addressing the known seismic and environmental/climate risks associated with reliance on the Delta for conveyance. (2018 - 2020) 0 District representation and monitoring/tracking of the DWR planning/design and environmental review effort aimed at defining a potential Delta Conveyance project; participation in planning/environmental review effort keeps option open for the District to decide later on long-term participation once environmental review is completed and a project has been defined. (2021 – current) - Development of Water Management Tools (WMT) Amendment District representation, and monitoring/tracking of the negotiated principles for the contract amendment aimed at improving the flexibility Contractors have in managing their SWP water supplies - with a focus on water transfers and exchanges within the SWP service area. (2018 - 2021)

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– County Tax Collector and County Public Works: The County and Flood Control District concur with this recommendation so long as the water resource project has a State Water nexus and will implement when appropriate.