Fox Canyon GMA adopts overuse assessment tied to prevailing member agency supply rate

The Fox Canyon Groundwater Management Agency board of directors on June 25 adopted Resolution 2025-3 establishing the rate for a Las Posas Valley overuse assessment and rules for delinquency and interest.

The resolution sets the overuse assessment as a per-acre-foot amount equal to the prevailing municipal tier-1 supply rate used by the region's importing agency at the end of the cure period; makes assessments delinquent one month after they are due; sets interest on delinquent assessments at the Ventura County real property tax delinquency rate; and directs staff to deposit overuse assessment revenues into a separate Watermaster account reserved for replenishment projects. Staff presented the item as Resolution 2025-3 and recommended adoption. (Dr. Farai Kasseke, Watermaster staff)

Why it matters: Water year 2023 (Oct. 2023'Sept. 2024) was the first year that groundwater use reporting under the Las Posas Valley adjudication was available, and water year 2024 (Oct. 2024'Sept. 2025) is the cure period in which some users who overused could reduce usage to eliminate prior overuse. The board's action establishes the assessment amount so the Watermaster can levy charges in the future after it determines overuse under the judgment.

Staff explained the judgment defines overuse in three ways: using groundwater in excess of an annual allocation; a mutual water company reporting aggregate use above its aggregate mutual supply; and a mutual shareholder without an allocation using basin groundwater. The judgment provides a cure period in the year following an overuse year; failure to cure may subject a water-right holder to overuse assessments and injunctive relief. Dr. Farai Kasseke told the board the assessment's purpose is to discourage use above what is allowed under the judgment.

Board members asked whether the Watermaster had authority to exclude parties who are appealing the trial court's underlying adjudication decision from assessment. Counsel and staff replied that applicability of the overuse assessment (who must pay) is set by the judgment and that the proposed resolution establishes only the amount and terms of an assessment; enforcement questions remain the province of the court and the Watermaster. Counsel told the board the resolution does not itself determine applicability or enforcement.

Public commenters urged caution before enforcement. Grower Darryl Smith said the level of potential charges was "unsustainable," adding, "If you pump an acre-foot a day, that's $1,800 a day" and said enforcement now would threaten operations. Other growers described not receiving notice of allocation changes and said they lacked a water market to obtain replacement supply.

The board moved and seconded adoption of Resolution 2025-3 and carried the measure. The motion recorded as adopting the proposed resolution establishing the overuse assessment rate, delinquency and interest rules, and the deposit instruction for replenishment accounts. (Motion and roll call: motion moved and seconded; outcome: approved.)

The board and staff emphasized this is a procedural step: setting the rate so the mechanism exists should the Watermaster later determine overuse and move to levy assessments. Counsel repeated that enforcement and applicability are governed by the adjudication judgment and, where contested, by the courts.

The board directed committee review where appropriate (the PAC was asked to review requested opinions previously) and to continue communication with the parties addressing appeals and enforcement as necessary.