IWV Groundwater Authority hears four bids for imported water work, directs staff to draft augmentation plan

The Indian Wells Valley Groundwater Authority on Jan. 10 heard four responses to its request for qualifications for imported water and related services and directed staff to develop an augmentation plan and a recommended committee structure for board approval.

The presentations outlined different approaches to closing the basin's supply gap: Mammoth Trading advocated demand-management programs and local incentive payments; Mammoth's co-founder Rochelle Young said, “demand management is going to be quick to implement.” Capital Corp Group and partners Todd Tatum and Jeff Simonetti emphasized identifying water purchases, negotiating transfer and wheeling agreements, and seeking state and federal funds; Rodney Smith of Stratocon focused on the economic and legal framework needed to evaluate and structure transfers; and Bob Bocock of Integrated Resource Management highlighted transaction experience and the need for a portfolio approach combining banking, leases and permanent transfers.

The proposals presented practical differences. Mammoth Trading proposed a fee-for-service pilot focused on designing and testing demand-management strategies, including trading, buybacks and incentives, and estimated $270,000 over roughly two years for a scoping, simulation and pilot program. Capital Corp/Tatum/McKinney emphasized water-purchase identification, transfer and wheeling agreements and outlined a year-one market assessment plus potential appropriations and federal advocacy to help fund infrastructure. Stratocon and Integrated Resource Management stressed detailed economic due diligence, regulatory risk analysis and staged project phases culminating in definitive agreements and financing.

Steve Johnson, Indian Wells Valley Water Resources Manager, framed the presentations as preliminary and asked the board to give staff direction on next steps. "The goal here would be, if we can, to have the staff come back through an ad hoc committee ... to be able to come back to the next meeting in February with a recommendation," Johnson said. Several board members supported that approach; Director Mick Gleeson called for an early, public session focused solely on finances and for staff to return with a plan for an augmentation committee.

Board discussion emphasized the need for a multifaceted approach. Director Nick Beeson said the basin will require augmentation in addition to conservation and local projects; he and others urged combining imported supplies with demand-management and local recharge options. John Vallejo, Assistant County Counsel for Inyo County, stressed the legal and political complexity of imports from nearby counties and the limits of local authority.

Instead of selecting a consultant at the meeting, the board agreed by consensus to ask the general manager and staff to develop (1) an augmentation strategy outline, (2) options for committee/ad hoc structure that would include PAC/TAC representation and at least one board member, and (3) a timeline and recommendation to return at the February meeting. The board did not authorize a contract award at this session.

What happens next: Staff will draft the augmentation plan and return with a recommendation on an ad hoc committee (membership and Brown Act implications), proposed evaluation criteria for procurement of consultants or contractors, and an initial project priority list to be coordinated with the TAC and PAC. The board indicated it wants rapid progress but also broader stakeholder engagement before moving to contract awards.

Votes at a glance - Motion to refer development of an augmentation/ imported-water plan to staff and return with a recommended ad hoc/committee structure: direction given by consensus (no roll-call recorded).