Consider and/or act on proposed rule amendments intended to (1) change

Staff Report & Agenda Item Details

Consider and/or act on proposed rule amendments intended to (1) change Management Zone 1 boundaries and operating conditions to recognize hydrogeological differences between South Coyanosa and Belding areas and (2) establish (A) acceptable aquifer level fluctuations and (B) thresholds for pro rata cutbacks when aquifer level declines in certain monitoring wells, which have been subject to public rulemaking hearing and based on public comment. Director Puja Boinpally recused herself, and completed the Disclosure Affidavit. (1) change Management Zone 1 boundaries and operating conditions to recognize hydrogeological differences between South Coyanosa and Belding areas. General Manager, Ty Edwards, reported that there have been several rulemaking hearings over the years. In 2017 the District had several rulemaking hearings and took public comment. The purpose of the proposed rule changes was to modify the boundaries of Management Zone 1 to better incorporate the science in the Management Zone 1 area. We have that set out in the proposed rules. . Gershon: The applicable statute - 36.101 of the Texas Water Code and our rules provide that after hearing and public comment, which has occurred, and appropriate notice was published, then you can act on these proposed rules. The way that we've defined the management zone in the current rules, we have essentially a picture, a visualization of that management zone, and there is some text in Rule 10.5(a) that describes what you see in our rules. Based on the visualization and reference to GAM grid cells, and latitude and longitude and coordinates, there is an easier way to describe that and an easier way probably for the public to deal with that by using the District's Excel files and other records within the District. Vanessa Cardwell made a motion to approve the proposed rule amendments to change Management Zone 1 boundaries as presented. Also to approve a nonsubstantive change in the language that describes Management Zone 1 Minutes of June 16, 2020 Page 8 of 12 boundaries as shown in Rule 10.5(a). The nonsubstantive changes include removing the coordinate values and changing it to reference the District's records (referencing Excel file—see note below). Motion seconded by Janet Groth. Note: The District Excel file is located at: \\Mpgcd-server\data\1.M.P.G.C.D\5. Rules & by-laws& chap 36\001.Adopted Rules\06-16-2020_Rule 10-5- a_MPGCD_MZ1_ModelGridCentroilds.xlsx Public Comment from Ryan Reed, Attorney for Cockrell Investment Partners, L.P. We do not object to changing the boundaries of Management Zone 1. Procedurally however, Cockrell believes that it is unclear if we are currently in a rulemaking hearing or if the previous (2017) rulemaking hearings were ever concluded. It appears the previous rulemaking hearings were never concluded, and that this one hasn't been noticed. This is relevant because there are additional issues we believe should be considered as part of the rulemaking hearings. Specifically, Cockrell provided the District with a set of proposed rules that we believe should supplement what Dr. Hutchison’s previously prepared. We do think that it is appropriate when considering the change to the management zone that we also consider Dr. Hutchison's rules as well as Cockrell’s proposed supplemental rules. There was discussion by Mike Gershon and others about the 1°! and 2 rulemaking hearings in 2017 and whether they were properly noticed and adjourned. Ryan Reed again took the floor and said he stands corrected, and that the record reflects that the meetings were adjourned. President McGuairt called for the vote on the motion on the floor. Motion passed. Vote: 8 FOR. -0- Oppose. 2 Absent (Childs/Cooper). 1 Abstention/Boinpally. 2" Part of Agenda Item: (2) establish (A) acceptable aquifer level fluctuations and (B) thresholds for pro rata cutbacks when aquifer level declines in certain monitoring wells, which have been subject to public rulemaking hearing and

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.7/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.