Selma Municipal Code Ch. 4 Groundwater Overdraft Mitigation Fees

The city council finds, determines and declares that:

(A) Local water resources are among the most precious resources of the city and surrounding area.

(B) Management of the water resources serving the residents of the city is critical to the long term health, welfare and safety of the citizens of the city.

(C) The city's primary water supplies are from underground water resources, which are being depleted by groundwater extraction that exceeds groundwater replenishment ("groundwater overdraft").

(D) Conversion of land from agricultural to urban uses increases the local groundwater overdraft and has the potential to seriously deplete available groundwater resources over time.

(E) Provision of municipal water supplies by a public utility within the boundaries of the city of Selma contributes substantially to the continuing groundwater overdraft.

(F) The causes of and methods for mitigating groundwater overdraft has been determined through a series of technical studies presented to or prepared for the city and including a hydrology report prepared by an engineering firm and included within the environmental impact report (EIR) certified by the city in connection with approval and adoption of its 2030 general plan update, which studies and analysis have been reviewed and considered by the city council prior to adoption of this chapter. The aforementioned technical analysis provides the basis for the fees established by this chapter.

(G) California constitution article XI, section 7, and California Public Utilities Code section 6203 and 6294 and policies and objectives of the city's 2030 general plan update authorize the city to enact this chapter. (Ord. 2012-4, 11-5-2012)

The purpose of this chapter is to assess a volumetric fee upon urban water extractions by the public utility providing water for urban and municipal residential, commercial, or industrial uses anywhere within the boundaries of the city, the sphere of influence of the city of Selma as determined by the Fresno County local agency formation commission, or within the "Selma district" of the utility as established by the California public utilities commission (CPUC) to the extent such extractions of groundwater by the public utility is used, in whole or in part, to provide water for municipal, residential, commercial or industrial uses within the sphere of influence of the city of Selma and/or the Selma district of California Water Service Company as defined by the CPUC to fund programs to mitigate the impact of such groundwater extraction upon the conditions of groundwater overdraft. Such activities will include, but shall not be limited to, the following:

(A) Acquisition of surface water rights and surface water supplies.

(B) Development of groundwater recharge facilities.

(C) Reconfiguration of stormwater facilities designed to retain as much stormwater as possible within and near the city of Selma.

(D) Enhancement of cooperative programs with local water management agencies and companies.

(E) Development of more efficient water delivery systems. (Ord. 2014-6, 9-2-2014)

(A) This chapter shall be known and may be cited as the CITY OF SELMA WATER RESOURCE MANAGEMENT AND GROUNDWATER OVERDRAFT MITIGATION FEE ORDINANCE.

(B) This chapter shall apply within the incorporated area of the city of Selma, and within the city of Selma sphere of influence and the Selma district of California Water Service Company, the utility providing water service for municipal, residential, commercial and industrial uses within and outside of the city boundaries to the full extent permitted by article XI, sections 7 and 9 of the constitution of the state of California. (Ord. 2014-6, 9-2-2014)

(A) Commencing on the date on which a determination of the California public utilities commission relating to the application of this chapter becomes effective or final (the "effective date"), the public utility, California Water Service Company, or its successor (the "utility"), which supplies municipal water within the city of Selma to residential, commercial or industrial water users shall pay to the city a groundwater impact or replenishment fee computed as follows:

1. The utility shall equip all groundwater wells, operated by it and located within the city of Selma boundaries, or the city of Selma sphere of influence, or within the "Selma district" of the utility used to provide water anywhere within such territory for municipal, residential, commercial or industrial use, with meters that accurately measure the instantaneous flow and accumulated volume of water extracted from the groundwater by those wells ("groundwater extraction") and report to the city within thirty (30) days after each calendar quarter, of each year following the effective date hereof, the volume of groundwater extraction for the previous calendar quarter.

2. The volume of net groundwater extraction shall be determined by reducing the reported volume of groundwater extraction by twenty seven percent (27%).

3. The utility shall pay to the city of Selma within thirty (30) days after the end of the calendar year following the effective date hereof, and annually thereafter, the following amounts:

(a) Sixty nine one-thousandths dollars ($0.069) per one hundred (100) cubic feet of net groundwater extraction occurring during the calendar year; and

(b) Twenty three one-hundredths dollars ($0.23) per one hundred (100) cubic feet of net groundwater extraction occurring during the calendar year (the "replenishment fee").

(B) The utility shall maintain records of all pumping for the purpose of supplying water within the city. Such records shall identify the volume of water pumped from each well utilized to provide water service within the city. Such records shall be subject to inspection by the city during normal business hours after providing five (5) working days' notice of intent to inspect such records.

(C) In lieu of the payment of the fee specified above, the city may, in its sole discretion, reduce the portion of the replenishment fee that is twenty three one-hundredths dollars ($0.23) per one hundred (100) cubic feet of net groundwater extraction occurring during the calendar year to an amount that is equal to the following percentages of said portion of the replenishment fee:

1. For the first year during which this chapter and the obligation for payment of the replenishment fee is in effect, twelve and one-half percent (12.5%) of said portion of such fee.

2. During the second year this chapter is in effect, twenty five percent (25%) of said portion of such fee.

3. During the third year this chapter is in effect, thirty seven and one-half percent (37.5%) of said portion of such fee.

4. During the fourth year this chapter is in effect, fifty percent (50%) of said portion of such fee.

5. During the fifth year this chapter is in effect, sixty two and one-half percent (62.5%) of said portion of such fee.

6. During the sixth year this chapter is in effect, seventy five percent (75%) of said portion of such fee.

7. During the seventh year this chapter is in effect, eighty seven and one-half percent (87.5%) of said portion of such fee.

8. During and after the eighth year this chapter is in effect, one hundred percent (100%) of said portion of such fee shall be payable.

(D) The groundwater impact or replenishment fee required by this section shall be payable, if, but only if, by application to the California public utilities commission, the utility is permitted and authorized to impose a surcharge payable by the customers of the utility in an amount necessary to cover the full amount of the fees payable and the time for payment of the fees, and the implementation of all actions required or allowed by this chapter shall be determined by reference to the date on which such approval of the California public utilities commission is effective or final.

(E) Within thirty (30) days after the effective date hereof, the utility shall file with the California public utilities commission and, thereafter diligently pursue appropriate applications for approval of the California public utilities commission (PUC) of the utility undertaking the obligations imposed by this chapter and after receiving approval of the PUC shall observe and perform all requirements of this chapter. In the event the PUC does not approve of the imposition of the fees required by this chapter on the utility, or does not approve the surcharge necessary to fund the payments required by this chapter, the utility shall timely petition the PUC to reconsider and revise its opinion or order or shall appeal the same in the manner permitted by law.

(F) Following the fifth anniversary on which this chapter becomes effective, the fees payable by the utility to the city as required in this section, shall be subject to an annual increase equal to the amount of the increase of the consumer price index (CPI) using the "All Urban Consumers San Francisco-Oakland-San Jose Area, All Items (1982-84=100) Index", as published by the United States department of labor, bureau of labor statistics. The utility shall include in its application or petition to the PUC to approve the payment of fees required by this chapter and/or the imposition of a surcharge to customers necessary to fund payments required by this chapter a request or application that the fee shall increase by the amount of the said index, in the manner specified above.

(G) That portion of the replenishment fee that is twenty three one-hundredths dollars ($0.23) shall be placed into a replenishment fund and may only be used for the purpose of developing recharge projects or for the transfer, delivery or purchase of surface water for recharge, as determined by a vote of a committee established for that purpose. In connection with making any decision concerning use of any money in the replenishment fund, the city of Selma will meet and confer with the utility, California Water Service Company, or its successor, concerning how it should vote relating to the making of expenditures from the replenishment fund for recharge activities or projects, and in the event of any disagreement over the proposed expenditure between the city and California Water Service Company, the city shall defer to California Water Service Company and the city representative on the said committee shall vote in the manner requested by the utility. (Ord. 2014-11, 10-20-2014)

This chapter shall be in full force and effect for the entire term of that certain cooperative agreement between the city of Selma and consolidated irrigation district dated October 1, 2012, either as originally set by the agreement or as extended pursuant to the provisions thereof and this chapter will expire and cease to be of any force or effect on the date on which the cooperative agreement is terminated. (Ord. 2014-7, 9-2-2014)

Any violation of this chapter shall be prosecuted in the same manner as misdemeanors and upon conviction the violator shall be punished according to law; however, in addition to or in lieu of any criminal prosecution the city shall have the power and standing to sue in civil court to enforce the provisions of this chapter against the utility. (Ord. 2014-7, 9-2-2014)

If any section, phrase, sentence or portion of this chapter is for any reason held invalid or unconstitutional by any court of competent jurisdiction such portions shall be deemed a separate, distinct and independent provision and such holdings shall not affect the validity of the remaining portions thereof. (Ord. 2014-7, 9-2-2014)