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Extracted from Consolidated Report

This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.

Santa Cruz County Grand Jury • 2021-2022

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

Published: May 24, 2022 18 pages
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Findings 12 findings

F1 Page 142
If extended drought conditions lead the City of Santa Cruz to execute Stage 5 of its Water Shortage Contingency Plan, it will have extreme economic impacts on all residents throughout the County. __ AGREE X PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): We recognize a Santa Cruz Stage 5 curtailment of duration would have a significant impact to the City of Santa Cruz and its customers. However, to our current knowledge, no economic study has been conducted to evaluate the impacts throughout Santa Cruz County from the City of Santa Cruz implementing Stage 5 curtailment. The vast majority of water used in the County is from groundwater sources and not water provided by the City of Santa Cruz, which gets 95% of its water from surface water sources. For reference, an economic study was conducted for the Pure Water Soquel Project and it concluded that without this purified recycled water project, Soquel Creek Water District customers would have to pay significantly more for water and need to ration water, and that the project had a positive impact on the community of almost one billion dollars ($1,000,000,000). [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 135
F2 Page 143
There is an urgent need to create a county-wide drought-resilient water storage and delivery infrastructure. AGREE _X PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): While water storage opportunities may traditionally be thought of as above ground tanks and reservoirs, the groundwater basin in our local region (Santa Cruz Mid- County Groundwater Basin) has storage capacity to provide a drought resilient fresh water supply that can protect against further seawater contamination and seawater intrusion. Currently, the State of California has declared the Santa Cruz Mid-County Groundwater Basin (Basin 3-001) as critically overdrafted and has mandated the local groundwater agency (Santa Cruz Mid-County Groundwater Agency) to bring the basin back into sustainability by 2040. This basin provides 100% of the water needs to the majority of mid-SC County’s residents and it is extremely important that this freshwater be protected and preserved. Along with the City of Santa Cruz’s shortfalls with their surface water supplies being greatly impacted with drought conditions, we agree there is an urgent need to create solutions for drought-resilient water storage and delivery infrastructure, including the Pure Water Soquel Project. Santa Cruz County Civil Grand Jury
F3 Page 144
Interdistrict water-sharing plans spanning North County and Mid-County that could benefit all residents have existed since 2015 and deserve to be accelerated. __ AGREE X PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): Water purveyors in the North and Mid County regions have collaborated, discussed, and developed potential sharing concepts over the years. While there aren’t any concrete plans and we would always like to move faster – there are ideas, concepts, and joint studies that have been considered to provide benefits to the entire community. Two recent examples: • The water transfer pilot project between the City of Santa Cruz and Soquel Creek Water District is still in the testing mode to evaluate water quality blending and other potential issues. • The Pure Water Soquel Project is currently being built, which was sized so that the conveyance pipeline can handle double the capacity that Soquel Creek Water District is projected to need in the event that the water treatment facilities are ever expanded in the future (also for double capacity). As analyzed in the previously certified EIR for the project, expansion of this project is not reasonably foreseeable at this time, but proper environmental review will be done if and when the District decides to expand use of the Project . There are currently no formal plans or agreements in place for others to expand or use the available future capacity. As part of a recent Department of Water Resources (DWR) grant for critically overdrafted groundwater basins, the Santa Cruz Mid-County Groundwater Agency grant, the City of Santa Cruz, and Soquel Creek Water District will be evaluating various water-sharing scenarios to address groundwater sustainability and drought resiliency needs. [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 137
F4 Page 145
Establishing a strategic groundwater reserve, as described in documents from the City of Santa Cruz, is a well-understood and achievable first step. __ AGREE __ PARTIALLY DISAGREE X DISAGREE Response explanation (required for a response other than Agree): Our understanding is the City of Santa Cruz efforts to create a groundwater reserve are still being explored and tested. Thus, it may not be technically accurate to classify those efforts as "well-understood” and thus not sure if it is an “achievable first step”. We hope their efforts will achieve the desired results and the District is committed to continuing efforts with the City as partners on their aquifer storage recovery testing, the pilot water transfer project, and evaluating the potential for incorporating the expansion portion of the Pure Water Soquel project into their water supply portfolio as well as those of other entities, if desired. Santa Cruz County Civil Grand Jury
F5 Page 146
The City of Santa Cruz’s completion of the water rights revision project is a critical element of enabling district collaboration in support of county-level drought resilience. __ AGREE X PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): The City of Santa Cruz’s water rights project is an important component to expansion of surface water opportunities and their drought resilience. While it may be helpful for drought resiliency for other agencies - it is not as critical of an element for other agencies that use groundwater and are incorporating recycled water into their portfolios. For example, the Soquel Creek Water District/City of Santa Cruz collaboration related to the Pure Water Soquel purified recycled water project is being constructed regardless of the City’s water rights revisions. [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 139
F6 Page 147
Limited interdistrict water transfers have been achieved and serve as proof of concept. __ AGREE __ PARTIALLY DISAGREE X DISAGREE Response explanation (required for a response other than Agree): The Cooperative Water Transfer Pilot Project agreement between the City of Santa Cruz and Soquel Creek Water District was created in 2015 with the hope of transferring about 300 acre-feet per year to Soquel Creek Water District with various testing to be conducted. Unfortunately, since that time water has been transferred only four (4) times since 2015, with the average of about 34 acre-feet year. The City also conducted a modeling study showing there is not enough surface water to reliably solve both the City's need for a drought supply and reliably meet Soquel Creek Water District’s need for water to create and maintain a seawater intrusion barrier in its service area. Besides the limited and irregular surface water quantities available for transfer, water-quality and other concerns/considerations are needed to be evaluated further as part of both agencies’ due diligence and ‘proof of concept’ for its customers. Santa Cruz County Civil Grand Jury
F7 Page 148
Existing City of Watsonville and City of Santa Cruz wastewater resources are only partially utilized to address passive well resting and saltwater intrusion issues. __ AGREE X PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): Our understanding is that the PV Water and the City of Watsonville use almost all their wastewater resources; however, they should be contacted to verify their situation. We agree with the statement regarding the wastewater resources for the City of Santa Cruz.
F8 Page 131
Each agency described in this report communicates well with neighboring agencies, but collaboration is limited and narrow in scope. __ AGREE X PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): We agree that water agencies in Santa Cruz County typically communicate well and frequently on a wide range of matters. One example of such collaboration is the formation of the Santa Margarita Groundwater Agency (SMGWA) as a joint powers agency by and among the District, the Scotts Valley Water District, and the County. SMGWA meets regularly and collaborates with the City of Santa Cruz Water Department, Mt. Hermon association and private well owners to provide for sustainable management of the Santa Margarita groundwater basin as required by California’s Sustainable Groundwater Management Act. The groundwater sustainability plan recently adopted by SMGWA sets forth a number of potential projects that, if implemented, would involve extensive collaboration, including with the City and the Soquel Creek Water District, on a wide range of projects. Separately, the District appreciates many offers of support and cooperation made by neighboring water entities in connection with the CZU wildfire and other previous disasters. We partially disagree with the finding because we would not characterize such inter- agency collaboration as being “limited and narrow in scope.” Our Water Account Is Overdrawn Published on May 24, 2022 124 Santa Cruz County Civil Grand Jury
F9 Page 132
Agency communications to the public emphasize conservation and sustainability while downplaying agency planning to achieve drought resilience. __ AGREE X PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): We agree that water agency communications to the public often emphasize conservation and sustainability. Legal mandates drive many such communications. For example, California statutes and regulations require water purveyors to adopt and implement water shortage contingency plans (WSCPs). WSCPs establish the actions to be taken by water agencies in response to drought and other impacts on local water supplies. Such actions may include community outreach and education about the importance of conserving water. Similarly, “sustainability” has been a frequent topic of communications by the District and outreach by Santa Margarita Groundwater Agency since the historic passage in 2014 of California’s Sustainable Groundwater Management Act. The District also communicates with its residents about the District’s efforts to achieve drought resilience through, among other things, conjunctive use. We partially disagree with the finding because we have not observed downplaying of the need to achieve drought resilience, which is inextricably linked with water shortage contingency planning and sustainability planning. Our Water Account Is Overdrawn Published on May 24, 2022 [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 125
F10 Page 133
The individual water supply districts lack funding, resources, and charters to develop county-centric drought-resilience infrastructure. X AGREE __ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): We agree that individual water supply agencies, particularly relatively small ones such as the District, do not have the resources or mission to take the lead in developing County-centric infrastructure. The District actively collaborates with the County’s Water Resources Division and neighboring water agencies and likely would participate in regional or County-wide infrastructure projects to the extent they provide benefits for the District and its residents. Our Water Account Is Overdrawn Published on May 24, 2022 126 Santa Cruz County Civil Grand Jury
F11 Page 134
The Groundwater Sustainability Management agencies lack the charters, staff, and resources to plan or execute a county-wide drought-resilience strategy. X AGREE __ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): We agree that the Santa Margarita Groundwater Agency (SMGWA), of which the District is a founding member, cannot focus its resources on County-wide strategies. SMGWA could participate in regional or County-wide projects to the extent such projects benefit the Santa Margarita groundwater basin and are consistent with SMGWA’s mission under the Sustainable Groundwater Management Act. Several of the proposed management actions in the Groundwater Sustainability Plan submitted in January 2022 by SMGWA involve regional collaborations that address drought resilience -- in particular the proposed projects to use the Lompico aquifer for drought storage for the City of Santa Cruz and to use treated wastewater from Pure Water Soquel to augment groundwater supplies in Scotts Valley Water District. Our Water Account Is Overdrawn Published on May 24, 2022 [Return to Table of Contents] 2021–2022 Consolidated Final Report with Responses 127
F12 Page 135
There is no county-level agency chartered to plan, propose, or build regional district-spanning drought-resilience infrastructure. X AGREE __ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): -- Our Water Account Is Overdrawn Published on May 24, 2022 128 Santa Cruz County Civil Grand Jury

Recommendations 4