The Ukiah Valley Basin Groundwater Sustainability Agency Board meeting was scheduled for three hours, but finished in two, because nobody from the public showed up to comment. This is most likely because the Mendocino County Farm Bureau members already know about the new fees, as there have been several public meetings since January 2024, attended by Farm Bureau members and management. Farmers will have the highest rate of fees of any of the four categories of water users, and they have been paying attention to this issue. The City of Ukiah will pay the highest dollar amount in fees, as the City uses the most water in the basin.
Harry Starkey, General Manager of the UVBGSA efficiently led a discussion on the Fiscal Year 2024-2025 Budget, which he said “has been pared down to a lean budget.” Both Starkey and Indigo Bannister of West Yost were well prepared and were able to answer questions on the spot. The rate and fee study ended up costing more than expected, and the budget line item for grant writing came in lower than expected. The Board discussed and voted to re-allocate some of the grant writing money.
The Budget is now under $500,000, with revenue approved at around $600,000, to build in a $100,000 reserve for the following year. Board Chair Glenn McGourty asked about the budget line item for county fees. Starkey replied that it’s for rent of the Supervisors’ Chambers and tech-support for the board meetings. There will also be fees paid to the County for revising the property tax bills to include UVBGSA fees.
Alternate Board Member John Bailey wanted to know why such a large reserve was needed. Starkey replied that they would like to build a reserve balance of $185,000 in five years when more reporting requirements will be necessary. Starkey said the Budget assumes that 10 petitions against the fees will come from the public. If there are fewer petitions, fees may be reduced next year. The UVBGSA won’t receive more income until the December property tax bills are paid. The current funding came from four member agencies and grant money, but the grant money from the State of California will not continue to fund ongoing operations. The four member agencies are the County of Mendocino, the City of Ukiah, Russian River Flood Control and Water Conservation Improvement District, and the Upper Russian River Water Agency.
The Farm Bureau’s new Executive Director, Jazzmynn Randall, wanted to know how the figure for bad debts was calculated. Bannister said bad debt is estimated to be 3%, based on Sonoma County’s experience, and industry standard. The Board voted to approve the Budget.Economist Catherine Hansford gave a presentation on the Fee Study.
It was decided to use one rate for all crop land, as opposed to Sonoma County, which has different fees for orchards, grapes and other crops.
The fees will be billed by August 10 at the latest to the public water agencies. Property owners will see the fees on their December property tax bills. The UVBGSA will prepare bills for public water systems and non-extractors. The fees need to be approved annually. Board Member Douglas Crane said arguments still exist that this is a regulatory burden, and questioned why most of the fees fall on agriculture. Reporting to the State is burdensome. We should look at small users through a different frame going forward. Board Member Adam Gaska replied that the fee estimate goes back to the Groundwater Sustainability Plan. The City of Ukiah will actually be paying the highest amount of fees. Crane said, “We are still saddled with the cost as a greater community. We are fortunate that our groundwater is in good shape. This Board worked really hard to put together a fee structure that benefits all, given that we have uncertainty with climate and water.”
Yokayo Tribal representative Javier Silva commented that the Tribe will formally apply to be exempt from the GSA fees. Starkey replied that “We are sensitive to disadvantaged communities,” and asked that Silva submit a written request, to be reviewed by UVBGSA counsel.
Randall said the Farm Bureau appreciates changing the fees to cover per planted acre. “We would like to see a discussion on this annual 4% fee increase, and a possible refund.” She also wanted to know if dry farmed crops were included in planted acreage. Hansford said, “We cannot distinguish between dry and irrigated. We’re working on it.” McGourty said the 4% annual fee increase was designed to account for inflation. Other County fees were recently changed for the first time since 1991, resulting in huge sticker shock. Adjusting fees annually will prevent this.
The Russian Riverkeeper NGO submitted a Comment Letter in advance of the Board meeting, asking that the fee structure be based on actual use of water, with incentives for conservation efforts. To briefly summarize why the fee structure is not set up to monitor individual users as the Russian Riverkeeper is suggesting, the amount of data collection and analysis necessary to gather all the data on individual users would greatly add to the administrative costs for the UVBGSA. The Board chose a more streamlined method to keep the fees as low as possible, while meeting minimum state requirements. Some day in the future, as more data is available, perhaps the fee structure may change.
The Board voted to approve the Fee Study and the fee structure.
The Board discussed and approved a resolution to regulate de minimus wells, that is wells that produce less than 2 acre-feet per year, in order to include the property owners in the fee study and charge them fees. De minimus wells will not be metered by the UVBGSA. Permits for new agricultural and municipal wells will be reviewed by the UVBGSA, working with the County Environmental Health Department.
The Board discussed and approved having the UVBGSA negotiate and contract with the County for administration and collection of its fees on property tax bills.
An amendment to West Yost’s management contract was also approved, extending the term and amount of the contract, which expired in March 2024, through June 30, 2024, the County’s fiscal year-end.
Because newly-elected Board Secretary Theresa McNerlin was absent, the Board decided to bring back all the consent items listed on Item 5 of the agenda to a later meeting. These include approval of contracts with Larry Walker Associates, Mendocino County Resource Conservation District, and the California Land Stewardship Institute. For a complete list of items discussed, please see the Board Packet for the June 18, 2024 meeting.
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