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File #: 26-0255    Version: 1 Name:
Type: Information Item Status: Agenda Ready
File created: 2/25/2026 In control: Agricultural Water Advisory Committee
On agenda: 4/6/2026 Final action:
Title: Review Proposed Fiscal Year 2026-27 Groundwater Production Charges and Receive Committee Feedback.
Sponsors: Darin Taylor
Attachments: 1. Attachment 1: PowerPoint
COMMITTEE AGENDA MEMORANDUM
Agricultural Water Advisory Committee

Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)



SUBJECT: title
Review Proposed Fiscal Year 2026-27 Groundwater Production Charges and Receive Committee Feedback.
End

RECOMMENDATION: Recommendation
Review Proposed Fiscal Year 2026-27 Groundwater Production Charges and Receive Committee Feedback.
Body

SUMMARY:
Summary of Groundwater Production Charge Analysis
The proposed groundwater production charges reflects the benefit of District activities to protect and augment groundwater supplies and is applied to water extracted from the groundwater basin in Zones W-2, W-5, W-7, and W-8.
Zone W-2 encompasses the Santa Clara groundwater subbasin north of Metcalf Road or the North County. Zone W-5 overlays the Llagas subbasin from northern Morgan Hill south to the Pajaro River. Zone W-7 overlays the Coyote Valley south of Metcalf Road to northern Morgan Hill, and W-8 encompasses the area below Uvas and Chesbro Reservoirs. The discussion in this memo will focus on the three South County zones given that the agricultural groundwater charge projection is linked to the Municipal and Industrial (M&I) charges in South County.
The groundwater production charge recommendations are detailed in the Annual Report on the Protection and Augmentation of Water Supplies that was filed with the Clerk of the Board on February 27, 2026. The public hearing on groundwater production charges is scheduled to open on April 14, 2026 and continue on April 22, 2026 with a focus on South County, concluding April 28, 2026. It is anticipated that the Board would set the FY 2026-27 groundwater production charges by May 12, 2026, with an effective date of July 1, 2026.
The FY 2026-27 groundwater production charge and surface water charge setting process will be conducted consistent with the District Act, and Board resolutions 99-21 and 12-10.
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