Loading...
HomeMy WebLinkAbout2022-08-09 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, August 9, 2022, 5:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Due to the continuing state of emergency declared by the California Governor related to preventing the spread of Coronavirus (COVID-19), and pursuant to California Government Code Section 54953(e), this meeting will be facilitated in a hybrid format. As such, Directors and members of the public may choose to participate in person or by video/teleconference. Information for accessing this meeting by telephone or internet-based service is provided below. For questions regarding participation, please call the Board Secretary at (714) 701-3020. Computer/Mobile Device: https://us06web.zoom.us/j/89399299720 Telephone: (669) 900-6833 or (346) 248-7799 Meeting ID: 893 9929 9720 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL J. Wayne Miller, PhD, President Brooke Jones, Vice President Trudi DesRoches, Director Phil Hawkins, Director Tom Lindsey, Director 5. ADDITIONS/DELETIONS TO THE AGENDA Items may be added to the agenda upon determination by a two-thirds vote of the Board, or a unanimous vote if only three Directors are present, that there is a need to take immediate action which came to the District's attention subsequent to the agenda being posted. (GC 54954.2(b)(2)) 6. PUBLIC COMMENTS Any individual wishing to address the Board (or Committee) is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to three minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3) 7. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 7.1. Conference with Legal Counsel - Anticipated Litigation Initiation of Litigation Pursuant to Paragraph (4) of Subdivision (d) of Section 54956.9 of the California Government Code Number of Potential Cases: One Page 1 of 97 7.2. Conference with Legal Counsel - Anticipated Litigation Initiation of Litigation Pursuant to Paragraph (4) of Subdivision (d) of Section 54956.9 of the California Government Code Number of Potential Cases: One 7.3. Conference with Legal Counsel - Anticipated Litigation Initiation of Litigation Pursuant to Paragraph (4) of Subdivision (d) of Section 54956.9 of the California Government Code Number of Potential Cases: One 7.4. Public Employment Pursuant to Section 54957 of the California Government Code Title: General Manager 7.5. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Board President and General Counsel Unrepresented Employee: General Manager 8. REPORT FROM CLOSED SESSION 9. PUBLIC COMMENTS CONTINUED (ANTICIPATED TO BEGIN AT 6:30 PM) Any individual wishing to address the Board (or Committee) is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to three minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3) 10. INTRODUCTIONS AND PRESENTATIONS 10.1. Elected Official Liaison Reports 10.2. Federal and State Legislative Update 11. CONSENT CALENDAR All items on the consent calendar are considered routine and may be approved by a single motion. There will be no discussion of these items unless a member of the Board, staff, or public requests separate consideration. 11.1. Minutes of the Board of Directors Meeting Held July 21, 2022 Recommendation: That the Board of Directors approve the minutes as presented. 11.2. Reauthorizing Continuation of Virtual/Teleconference Board Meetings Recommendation: That the Board of Directors reauthorize the continuation of virtual/teleconference meetings pursuant to AB 361 for an additional 30 days based on the findings that (1) the Board has reconsidered the circumstances of the state of emergency for COVID-19, and that (2) state and local officials continue to impose or recommend measures to promote social distancing. 11.3. Payments of Bills, Refunds, and Wire Transfers Page 2 of 97 Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $7,752,006.46. 11.4. Budget to Actual Statements for the Month Ending June 30, 2022 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for the Month Ending June 30, 2022. 11.5. Cash and Investment Report for the Month Ending June 30, 2022 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the Period Ending June 30, 2022. 11.6. Notice of Completion for FY22 Sewer CIPP Rehabilitation Project Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for the FY22 Sewer CIPP Rehabilitation Project, Job No. J-2021- 28S. 11.7. Declaration of Restrictive Covenants with Juan Ma of 5992 Jasper Drive, Yorba Linda Recommendation: That the Board of Directors authorize the Board President and Interim General Manager to execute a Declaration of Restrictive Covenants with Juan Ma of 5992 Jasper Drive, Yorba Linda. 11.8. Quitclaim Deeds of 4858 and 4876 Main Street Recommendation: That the Board of Directors authorize the Interim General Manager to execute the Quitclaim Deeds to Longball Investments, LLC, abandoning two sets of recorded easements of the Official Records of Orange County, California. 11.9. Quitclaim Deed of 4842 Main Street Recommendation: That the Board of Directors authorize the Interim General Manager to execute the Quitclaim Deed to Transformation Ministries, abandoning the recorded easement of the Official Records of Orange County, California. 12. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board (or Committee) discussions are needed prior to formal action. 12.1. Response to Orange County Grand Jury Report - Water in Orange County Needs "One Voice" Recommendation: That the Board of Directors approve the response to the Orange County Grand Jury's report. 13. REPORTS, INFORMATION ITEMS, AND COMMENTS 13.1. Director's Reports 13.2. Interim General Manager's Report 13.3. General Counsel's Report 13.4. Future Agenda Items and Staff Tasks 14. COMMITTEE REPORTS 14.1. Interagency Committee with MWDOC and OCWD Page 3 of 97 (Miller / DesRoches) - Next meeting will be scheduled when needed. 14.2. Joint Agency Committee with City of Yorba Linda (Miller / Lindsey) - Minutes of the meeting held Monday, August 8, 2022, at 4:00 p.m. will be presented when available. Next meeting is yet to be scheduled. 14.3. Joint Agency Committee with City of Placentia (Jones / Lindsey) - Next meeting is in the process of being scheduled. 15. BOARD OF DIRECTORS ACTIVITY CALENDAR 15.1. Meetings from August 10 - September 30, 2022 16. ADJOURNMENT 16.1. The next regular Board meeting is scheduled Tuesday, August 23, 2022. Closed Session (if necessary) will begin at 5:30 p.m. and regular business at 6:30 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Non-exempt materials related to open session agenda items that are distributed to a majority of the Board of Directors (or Committee Members) less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District’s Administrative building located at 1717 E Miraloma Ave, Placentia CA 92870 during regular business hours. When practical, these materials will also be posted on the District’s website at https://ylwd.com/. (GC 54957.5) Accommodations for the Disabled Requests for disability-related modifications or accommodations, including auxiliary aids or services, required for participation in the above posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24 hours in advance. (GC 54954.2(a)) Page 4 of 97 ITEM NO. 11.1. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Minutes of the Board of Directors Meeting Held July 21, 2022 RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: 1. Draft Meeting Minutes Page 5 of 97 Minutes of the YLWD Board of Directors Special Meeting Held July 21, 2022 at 5:30 p.m. 1 2022-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, July 21, 2022, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 5:31 p.m. 3. PLEDGE OF ALLEGIANCE Director Lindsey led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, PhD, President Gina Knight, Human Resources and Risk Manager Brooke Jones, Vice President Annie Alexander, Board Secretary Trudi DesRoches Phil Hawkins Tom Lindsey ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. PUBLIC COMMENTS None. The following item was taken out of order. 7. ACTION CALENDAR 7.1.Identification of Agency Designated Representative for Labor Negotiations Page 6 of 97 Minutes of the YLWD Board of Directors Special Meeting Held July 21, 2022 at 5:30 p.m. 2 2022-XXX General Counsel Gagen explained the need for the Board to designate a representative or representatives to negotiate the terms of an employment agreement with prospective candidate(s) for the position of General Manager. He also reviewed potential options for representatives including designating General Counsel or two Directors. Director Lindsey proposed designating General Counsel Gagen and President Miller as the representatives. Director Lindsey made a motion, seconded by Director Jones, to designate the President and General Counsel as representatives to negotiate the terms of an employment agreement with the prospective candidate(s) for the position of General Manager in accordance with Government Code Section 54957.6(a). Motion carried 5-0-0-0 on a roll call vote. Human Resources and Risk Manager Knight briefly commented on the process for finalizing an employment agreement and setting goals and objectives for the position of General Manager. 6. CLOSED SESSION The Board entered Closed Session at 5:39 p.m. 6.1.Public Employment Pursuant to Section 54957 of the California Government Code Title: General Manager 6.2.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: Interim General Manager The Board returned to Open Session at 7:08 p.m. The Board took no reportable action during Closed Session. 8. ADJOURNMENT 8.1.On a motion by Director Jones, seconded by Director DesRoches, the meeting was adjourned at 7:09 p.m. Motion carried 5-0-0-0. Annie Alexander Board Secretary Page 7 of 97 ITEM NO. 11.2. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Reauthorizing Continuation of Virtual/Teleconference Board Meetings RECOMMENDATION: That the Board of Directors reauthorize the continuation of virtual/teleconference meetings pursuant to AB 361 for an additional 30 days based on the findings that (1) the Board has reconsidered the circumstances of the state of emergency for COVID-19, and (2) state and local officials continue to impose or recommend measures to promote social distancing. BACKGROUND: At the October 21, 2021 Board meeting, pursuant to AB 361, the Board of Directors adopted Resolution No. 2021-40 and authorized the Board to continue to have remote meetings based on the continued state of emergency for COVID-19 and the finding that state and local officials have imposed or recommended measures to promote social distancing. At the past several meetings, including the July 12, 2022 meeting, the Board voted to continue such remote meetings for an additional 30-day period. As previously indicated, if the Board wishes to continue to hold remote meetings pursuant to AB 361, and assuming a state of emergency is still in place, it must make similar findings at least every 30 days. At the time this report was prepared, there is a continued state of emergency for COVID-19, and state and local officials continue to recommend measures to promote social distancing. This item is on the agenda for the Board to consider whether to continue remote meetings pursuant to AB 361 for an additional 30 days and to make the appropriate findings. Page 8 of 97 ITEM NO. 11.3. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Keri Hollon, Accounting Assistant II SUBJECT: Payments of Bills, Refunds, and Wire Transfers RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $7,752,006.46. BACKGROUND: Pursuant to Section 31302 of the California Water Code, staff is submitting a list of disbursements to the Board of Directors for approval. The items on this disbursement list includes: a wire of $6,324.23 to Brick by Brick Restaurants LLC for a water developer refund on job number 2021-13; a wire of $377,829.30 to US Bank for bond 22A fees; a wire of $1,504,228.47 to Orange County Water District for PFAS plant work services; a wire of $3,402,933.30 to Orange County Water District for January through June replenishment assessment; a wire of $310,512.06 to MWDOC for FY22-33 annual retail services fee; a wire of $11,338.38 to Bank of America for July 2022 interest accrual payment; an ACH payment of $856,271.00 to CalPERS for UAL FY22-23 plan 1171; an ACH payment of $12,990.00 to CalPERS for UAL FY22-23 plan 26752, an ACH payment of $6,543.00 to CalPERS for UAL FY22-23 plan 22046; a check of $64,474.52 to City of Anaheim for June 2022 electrical services at various locations; a check of $46,119.64 to Coastline Equipment for new unit #240; a check of $40,850.00 to Pascal & Ludwig Constructors, Inc. for J2009-22 #22 well 22 equipping; a check of $41,463.13 for operations work materials; a check of $124,302.69 to ACWA/JPIA for FY22-23 property insurance premium; a check of $144,843.61 to ACWA/JPIA for August 2022 medical and dental premiums. The balance of $315,992.85 are routine invoices. The Accounts Payable check register total is $7,267,016.18 and Payroll No. 15 total is $484,990.28; where disbursements for this agenda report total $7,752,006,46. A summary of the disbursements is attached. ATTACHMENTS: 1. Cap Sheet for August 9, 2022 2. Check Register for August 9, 2022 3. Credit Card for August 9, 2022 4. BOD Credit Card for August 9, 2022 Page 9 of 97 CHECK NUMBERS: 8/9/2022 Computer Checks 80388-80478 778,046.44$ 778,046.44$ WIRES: CP2164708 CalPers 856,271.00$ CP2164709 CalPers 12,990.00 CP2164710 CalPers 6,543.00 W072222 BRICK BY BRICK RESTAURANTS LLC 6,324.23 W072722 U S Bank 377,829.30 W072822 Orange County Water District 1,504,228.47 W072822A Orange County Water District 3,402,933.30 W072822B Municipal Water District 310,512.06 W072822C Bank Of America 11,338.38 6,488,969.74$ 7,267,016.18$ PAYROLL NO. 15: Direct Deposits 309,137.57$ Payroll Taxes 98,514.45 EFT -- CalPERS 49,300.66 Third Party Checks 7772-7780 28,037.60 484,990.28$ 484,990.28$ 7,752,006.46$ ================================================================ MEETING OF AUGUST 9, 2022 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD ================================================================ DISBURSEMENT TOTAL Summary of Disbursements August 9, 2022 ------------------------------------------------------------------------------------------------------------------ TOTAL OF PAYROLL TOTAL OF CHECKS & WIRES Page 10 of 97 Check No.Date Vendor Name Amount Description 80388 08/09/2022 RAYMOND ROSALES 1,131.76 CUSTOMER REFUND 80389 08/09/2022 ANDREW SMALTZ 854.59 CUSTOMER REFUND 80390 08/09/2022 ADRIANA POSADAS 36.91 CUSTOMER REFUND 80391 08/09/2022 BRANDYWINE HOMES 14,987.76 CUSTOMER REFUND 80392 08/09/2022 ALEXANDRIA HUBER 35.97 CUSTOMER REFUND 80393 08/09/2022 JOE A MENCHACA 69.41 CUSTOMER REFUND 80394 08/09/2022 JOLIE TUCHSCHER 16.44 CUSTOMER REFUND 80395 08/09/2022 IN-N-OUT BURGERS 2,649.48 CUSTOMER REFUND 80396 08/09/2022 SANCON TECHNOLOGIES 2,050.00 CUSTOMER REFUND 80397 08/09/2022 NET DEVELOPMENT 1,709.61 CUSTOMER REFUND 80398 08/09/2022 SHANNON DURBIN 93.00 CUSTOMER REFUND 80399 08/09/2022 YICHONG CAI 117.88 CUSTOMER REFUND 80400 08/09/2022 AIRGAS INC 148.54 WELDING SUPPLIES 80401 08/09/2022 Albert A. Webb Associates 5,967.50 J09-22 #22 WELL 22 PROFESSIONAL SERVICES JUNE 2022 80402 08/09/2022 All American Asphalt 37,411.95 J20-59/S MANHOLE & VALVE BOX ADJUSTMENT 80403 08/09/2022 Alternative Hose Inc.650.49 PARTS FOR UNIT #210 & WELL #18 80404 08/09/2022 Amazon Capital Services 305.36 MARKING TAPE & IT SUPPLIES 80405 08/09/2022 America's Instant Signs 55.41 FLAGS 80406 08/09/2022 Aqua-Metric Sales Co.29,811.99 OPERATIONS WORK MATERIAL 80407 08/09/2022 Aramark 744.45 UNIFORM SERVICE 80408 08/09/2022 AT & T - Calnet3 1,089.67 ATT CALNET 80409 08/09/2022 BrightView Tree Care Services Inc.1,593.79 MONTHLY LANDSCAPE SERVICE 80410 08/09/2022 CalCard US Bank 20,642.43 CREDIT CARD TRANSACTIONS - JUNE 2022 80411 08/09/2022 CIPO CLOUD SOFTWARE INC 650.00 CLOUD MONTHLY SUBSCRIPTION 80412 08/09/2022 Citizen's Business Bank 2,150.00 J09-22 #22 PASCAL & LUDWIG ESCROW HOLDING 80413 08/09/2022 City Of Anaheim - Anaheim Public Utilities 64,474.52 ELECTRICAL CHARGES JUNE 2022 - VARIOUS LOCATIONS 80414 08/09/2022 Coastline Equipment 46,119.64 NEW UNIT #240 80415 08/09/2022 Communications Lab 5,000.00 PROFESSIONAL SERVICES JUNE 2022 80416 08/09/2022 Costco 120.00 MEMBERSHIP RENEWAL FEE 80417 08/09/2022 Crane Rental Service, Inc.910.20 J21-45 BUILDING 2 CRANE RENTAL 80418 08/09/2022 Culligan of Santa Ana 9.00 EQUIPMENT PE SOFTENER 80419 08/09/2022 DCL America Inc.10,326.00 PARTS FOR WELL #5 80420 08/09/2022 Discount Tire Centers (Andonian Enterprises Inc.)1,192.83 TIRES FOR UNIT #E-193 80421 08/09/2022 Dean Criske Trucking 2,358.63 ROAD MATERIAL 80422 08/09/2022 DXP Enterprises, Inc.1,210.00 SKID REMOVAL 80423 08/09/2022 Elite Equipment Inc 95.83 PARTS FOR UNIT #229 80424 08/09/2022 Enkay Engineering & Equipment Inc 900.00 TRANSITE PIPE DISPOSAL 80425 08/09/2022 First American Title Insurance Company 1,500.00 HILLTOP 3 DEVELOPMENT SEARCH & EXAMINATION FEE 80426 08/09/2022 Fuller Truck Accessories 1,349.03 PARTS FOR UNIT #238 80427 08/09/2022 Gexpro 11,682.08 SCADA PARTS 80428 08/09/2022 Grainger 299.71 LOCKOUT KIT FOR FACILITIES 80429 08/09/2022 Graybar Electric Co 3,856.93 SCADA MATERIALS 80430 08/09/2022 GREGORIO VALENZUELA 387.00 CWEA MEMBERSHIP & CERTIFICATE REIMBURSEMENT - COLLECTIONS 2 80431 08/09/2022 Hach Company 1,281.33 WATER QUALITY WORK MATERIALS 80432 08/09/2022 Harrington Industrial 297.16 PRODUCTION PARTS 80433 08/09/2022 Industrial Hearing 1,000.00 HEARING TESTS FOR STAFF 80434 08/09/2022 Infosend Inc.2,288.11 BILLING & POSTAGE CUSTOMER BILL 80435 08/09/2022 Jackson's Auto Supply - Napa 158.65 PARTS FOR UNIT #222 80436 08/09/2022 Jeremy Smith 705.00 BENEFIT EXPENSE REIMBURSEMENT 80437 08/09/2022 Kimball Midwest 531.46 MECHANIC SHOP SUPPLIES 80438 08/09/2022 Laco Steel, Inc 2,856.58 J21-39 BRYANT RANCH FENCE MATERIAL 80439 08/09/2022 Line-X of Orange County 5,824.00 LINING REPAIR FOR UNIT #193 80440 08/09/2022 Mc Fadden-Dale Hardware 741.37 PRODUCTION HARDWARE SUPPLIES & TOOLS FOR SEWER VEHICLES 80441 08/09/2022 Mc Master-Carr Supply Co.941.34 GRATING FOR PRODUCTION 80442 08/09/2022 MCR Technologies Inc.2,268.31 LEVEL GAGES FOR WELLS 80443 08/09/2022 Miguel Luis Rico 1,580.00 J21-39 BRYANT RANCH FENCE PARTS 80444 08/09/2022 Minuteman Press 21.50 BUSINESS CARDS FOR PUBLIC AFFAIRS 80445 08/09/2022 Nickey Kard Lock Inc 8,947.31 FUEL 7/1/22-7/15/22 80446 08/09/2022 North American Recycling and Crushing, LLC 500.00 DISPOSAL OF OLD ROAD MATERIAL 80447 08/09/2022 Orange County - Tax Collector 411.42 UNSECURED PROPERTY TAX FEES FY20-21 80448 08/09/2022 Orkin Pest Control 208.00 PEST CONTROL For Checks Dated: 7/27/2022 thru 8/9/2022 Yorba Linda Water District Check Register Page 11 of 97 80449 08/09/2022 Pascal & Ludwig Constructors, Inc 40,850.00 J09-22 #22 WELL 22 EQUIPPING 80450 08/09/2022 Linde Gas & Equipment Inc.828.50 WELDING SUPPLIES 80451 08/09/2022 Psomas & Associates 37,347.95 J21-02 PROFESSIONAL SERVICES - JUNE 2022 80452 08/09/2022 Quinn Company 2,467.58 PARTS FOR WELL #7 & HIGHLAND ENGINE SERVICE WORK 80453 08/09/2022 Raftelis Financial Consultants, Inc.1,852.50 PROFESSIONAL SERVICES JUNE 2022 80454 08/09/2022 R.E. Michel Company, LLC 480.82 J21-45 BUILDING 2 A/C PARTS 80455 08/09/2022 Rescue 411 5,220.00 CPR & AED TRAINING 80456 08/09/2022 Resource Computer Solutions 19,531.50 IT CONSULTING 7/15/22-8/14/22 80457 08/09/2022 Sagecrest Planning and Environmental 600.00 J20-46 PROFESSIONAL SERVICES JUNE 2022 80458 08/09/2022 So Cal Sandbags Inc.626.25 FILLED SANDBAGS 80459 08/09/2022 Southern Calif Edison Co.2,606.73 J18-27 METER SERVICE #3034291 80460 08/09/2022 Source 1 Environmental 10,577.44 SEWER PIPE PATCH KITS 80461 08/09/2022 Southern California Fleet Services, Inc 5,725.82 REPAIR WORK FOR UNITS #196, 197, 232 80462 08/09/2022 Rachel Padilla/Petty Cash 104.73 FOOD FOR STAFF WORKING OT 80463 08/09/2022 Step Saver Inc 4,377.45 SALT FOR CL2 SYSTEM 80464 08/09/2022 Tetra Tech, Inc.8,867.22 J20-46 PROFESSIONAL SERVICES APRIL 2022 80465 08/09/2022 United Site Services 388.23 J21-39 BRYANT RANCH FACILITY SERVICE 80466 08/09/2022 United Industries 69.81 OPERATIONS PPE 80467 08/09/2022 United Rentals 3,609.22 J21-39 EXCAVATOR RENTAL 80468 08/09/2022 UNUM Life Insurance Co. of America 5,232.55 LIFE,AD&D,STD&LTD - AUGUST 2022 80469 08/09/2022 USA Blue Book 261.82 HYDRANT OIL 80470 08/09/2022 United Water Works, Inc.41,463.13 OPERATIONS WORK MATERIAL 80471 08/09/2022 Vision Service Plan 2,552.95 VISION SERVICE PLAN - AUGUST 2022 80472 08/09/2022 West Coast Batteries Inc 326.88 BATTERY FOR UNIT #199 80473 08/09/2022 YO Fire 1,371.29 OPERATIONS WORK MATERIAL 80474 08/09/2022 Konica Minolta Business 1,228.16 COPY CHARGES FOR C258 & C558 80475 08/09/2022 Safety-Kleen Systems Inc 1,579.28 HAZARDOUS MATERIAL DISPOSAL 80476 08/09/2022 ACWA/JPIA 124,032.69 PROPERTY INSURANCE PREMIUM 7/1/22-6/30/23 80477 08/09/2022 ACWA/JPIA 144,843.61 MEDICAL & DENTAL PREMIUM AUGUST 2022 80478 08/09/2022 ACWA/JPIA 1,695.00 JPIA LEADERSHIP PROGRAM REGISTRATION - WESTON CP2164708 07/28/2022 CalPERS 856,271.00 UAL FY2022-2023 PLAN 1171 CP2164709 07/28/2022 CalPERS 12,990.00 UAL FY2022-2023 PLAN 26752 CP2164710 07/28/2022 CalPERS 6,543.00 UAL FY2022-2023 PLAN 22046 W072222 07/22/2022 BRICK BY BRICK RESTAURANTS LLC 6,324.23 CUSTOMER REFUND W072722 07/27/2022 U S Bank 377,829.30 22A BOND FEES W072822 07/28/2022 Orange County Water District 1,504,228.47 J20-05 PFAS PLANT SERVICES W072822A 07/28/2022 Orange County Water District 3,402,933.30 REPLENISH ASSESSMENT JANUARY-JUNE 2022 W072822B 07/28/2022 Municipal Water District 310,512.06 ANNUAL RETAIL SERVICES FY22-23 W072822C 07/28/2022 Bank Of America 11,338.38 INTEREST ON BOA LOC - JULY 2022 7,267,016.18 07/21/2022 PAYROLL - EMPLOYEE DIRECT DEPOSIT 309,137.57 07/21/2022 PAYROLL - PAYROLL TAX PAYMENT 98,514.45 07/21/2022 PAYROLL - CALPERS & TASC 49,300.66 7772 07/21/2022 Colonial Life 113.19 7773 07/21/2022 Lincoln Financial Group 3,620.79 7774 07/21/2022 Nationwide Retirement Solutions 20,793.22 7775 07/21/2022 CA State Disbursement Unit 366.92 7776 07/21/2022 CA State Disbursement Unit 384.92 7777 07/21/2022 Allstate 1,108.86 7778 07/21/2022 Midland 200.00 7779 07/21/2022 Reliance 54.55 7780 07/21/2022 Ameritas 1,395.15 484,990.28 Payroll Checks #15 Page 12 of 97 Vendor Name Amount Description LOS ANGELES INT'L AIRPORT 25.61 TRAVEL EXPENSE - ACE CONFERENCE - WESTON, R Calif Water Environ Assn (CWEA)106.00 CERTIFICATE RENEWAL - COLLECTIONS 4 - SILVESTRI, R Mc Fadden-Dale Hardware 23.49 HIGHLAND PIPE FITTING Ellsworth Truck & Auto Machine Inc.395.00 PARTS FOR WELL #1 Omni La Mansion del Rio 51.30 TRAVEL EXPENSE - ACE CONFERENCE - WESTON, R The County Line 8.53 TRAVEL EXPENSE - ACE CONFERENCE - WESTON, R Foundation Building Materials 105.48 CEILING TILES Mc Fadden-Dale Hardware 179.08 PRODUCTION PARTS Starbucks Store 3.52 TRAVEL EXPENSE - ACE CONFERENCE - WESTON, R Hyatt Regency Hotels 840.27 TRAVEL EXPENSE - ACE CONFERENCE - WESTON, R GADAA TAXI 31.62 TRAVEL EXPENSE - ACE CONFERENCE - WESTON, R ROSARIO'S 16.01 TRAVEL EXPENSE - ACE CONFERENCE - WESTON, R Fitness Grill 239.78 AUDIT LUNCH MEETING - 8 ATTEND ID WHOLESALER 79.51 DATA CARDS Home Depot 128.22 WEED SPRAY Home Depot 271.83 J22-08 BUILDING 2 MATERIALS Home Depot (268.28) RETURN - J21-39 BRYANT RANCH MATERIALS Time Warner Cable 659.58 INTERNET & DISTRICT TV SERVICES CALIFORNIA FISH GRILL 34.75 FOOD FOR STAFF WORKING OT Home Depot 581.33 J21-39 BRYANT RANCH MATERIALS Home Depot 154.04 J21-39 BRYANT RANCH MATERIALS Home Depot 152.30 FACILITIES REPAIR MATERIALS ZOOM 84.97 VIRTUAL MEETING SUBSCRIPTION SMARTSHEET 19.00 MONTHLY SOFTWARE SUBSCRIPTION Nexa Receptionists, LLC 685.40 AFTER HOURS PHONE SERVICE ONLINE Information Services, Inc.86.98 ONLINE UTILITY EXCHANGE & COLLECTION ONLINE Information Services, Inc.447.07 ONLINE UTILITY EXCHANGE & COLLECTION Republic Services #676 650.71 DISPOSAL SERVICE Home Depot 125.84 J22-08, J21-44 BUILDING 1 & 2 MATERIALS Adobe 54.99 SOFTWARE LICENSE Home Depot 201.98 ELECTRICAL SUPPLIES FOR WELL#5 Crane Rental Service, Inc.1,121.10 J21-44 BUILDING 1 CRANE RENTAL SurveyMonkey (384.00) SURVEY MONKEY SUBSCRIPTION REFUND NCH Software 51.28 VIDEO EDITING SOFTWARE RENEWAL - ORTEGA, V Home Depot 86.04 FACILITIES HARDWARE SUPPLIES Home Depot 43.33 RAPID SET CEMENT & BLADES Chefs Toys 393.65 J22-08 BUILDING 2 MATERIALS Home Depot 98.29 FACILITIES HARDWARE SUPPLIES Donut Star 45.00 SAFETY MEETING SUPPLIES Home Depot 10.63 BATTERY FOR KEY FOB - UNIT #195 Leadership Development Network 50.25 DISC ASSESSMENT - MUTTARAID, M VONS 72.63 EMPLOYEE APPRECIATION SUPPLIES Harbor Freight Tools 251.03 AUGER DRILL & TILES Home Depot 63.34 CHLORINE ANALYZER VALVE BOX Carbon Bulk Sales 1,309.70 WATER LEVEL METERS FOR PRODUCTION Home Depot 106.30 FACILITIES HARDWARE SUPPLIES Home Depot 90.19 WELLS#5 SCADA MATERIAL Costco 726.41 SUPPLIES FOR DISTRICT LUNCHEON Harbor Freight Tools 96.96 J21-39 AUGER BIT Home Depot 72.35 PRODUCTION HARDWARE SUPPLIES Village Nurseries 90.21 SOD FOR LANDSCAPE REPAIR Home Depot 233.58 SOD FOR LANDSCAPE REPAIR U.S. Saws, Inc.701.38 REPLACEMENT SAW BLADES United Site Services 671.84 J21-39 FACILITY SITE SERVICES Home Depot 9.63 MULCH FOR LANDSCAPE REPAIR NCH Software 51.03 VIDEO EDITING SOFTWARE RENEWAL - ALEXANDER, A Amazon Capital Services 55.44 EMPLOYEE SERVICE RECOGNITION NPELRA 110.00 ANNUAL MEMBERSHIP RENEWAL - KNIGHT, G Home Depot 145.33 PRODUCTION TOOLS Chefs Toys 158.33 DISTRICT MEETING SUPPLIES Smart & Final 143.22 DISTRICT MEETING SUPPLIES Home Depot 132.06 FACILITIES HARDWARE SUPPLIES The Art of Carving Ice, Inc.313.64 ICE FOR 4TH OF JULY EVENT 9-Aug-22 Cal Card Credit Card U S Bank Page 13 of 97 Smart & Final (48.49) MEETING SUPPLY RETURN COUNTY OF ORANGE RECORDER 2.00 COPY OF RECORDED DOCUMENT Time Warner Cable 226.48 INTERNET & DISTRICT TV SERVICES MAP Communications 274.00 AFTER HOURS PHONE SERVICE Donut Star 39.00 SAFETY MEETING SUPPLIES Smart & Final 61.81 SAFETY MEETING SUPPLIES Smart & Final 58.07 SUPPLIES FOR 4TH OF JULY EVENT Smart & Final 13.53 KITCHEN SUPPLIES Smart & Final 48.49 SUPPLIES FOR 4TH OF JULY EVENT Farmer Boys 96.40 FOOD FOR STAFF WORKING INVENTORY COUNT The Art of Carving Ice, Inc.168.02 ICE FOR 4TH OF JULY EVENT BACKGROUNDS ONLINE 188.03 NEW HIRE BACKGROUND CHECK IN-N-OUT RESTAURANTS 72.57 FOOD FOR STAFF WORKING OT Home Depot 100.21 J21-39 AUGER RENTAL FEES Home Depot 536.88 J21-39 BRYANT RANCH MATERIALS B & C Burgers 29.00 FOOD FOR STAFF WORKING 4TH OF JULY EVENT Municipal Water District 20.00 ISDOC QUARTERLY LUNCH REGISTRATION - JONES, B Municipal Water District 20.00 ISDOC QUARTERLY LUNCH REGISTRATION - DAVERT, D Municipal Water District 20.00 ISDOC QUARTERLY LUNCH REGISTRATION - HAWKINS, P Home Depot 23.78 SEWER CAMERA TRUCK SUPPLIES County of Orange 67.00 DISPOSAL OF OLD ROAD MATERIAL Orvac Electronics 11.29 LIGHT FOR UNIT #230 Calif Special Districts Assn 250.00 ACCREDITATION RENEWAL FEE Time Warner Cable 232.11 INTERNET & DISTRICT TV SERVICES Time Warner Cable 2,038.04 INTERNET & DISTRICT TV SERVICES CALPELRA 405.00 CALPELRA CONF REGISTRATION - KNIGHT, G Southwest Airlines 15.00 CALPELRA CONFERENCE AIRFARE - KNIGHT, G Southwest Airlines 15.00 CALPELRA CONFERENCE AIRFARE - KNIGHT, G Southwest Airlines 282.96 CALPELRA CONFERENCE AIRFARE - KNIGHT, G Mc Fadden-Dale Hardware 138.78 WIRE SPOOLS FOR UNIT#238 KB Design 188.41 SHIRTS FOR ENGINEERING Lamp Post Pizza 121.53 FINANCE DEPARTMENT LUNCH MEETING Donut Star 39.00 SAFETY MEETING SUPPLIES Home Depot 40.95 FACILITIES HARDWARE SUPPLIES Carl's Jr Restaurant 71.63 FOOD FOR STAFF WORKING OT Health Products For You 229.79 MEDICAL SUPPLIES FOR VEHICLES APPLE 0.99 OFFICE EXPENSE Home Depot 404.04 J21-39 BRYANT RANCH SUPPLIES Home Depot 425.59 J21-39 BRYANT RANCH SUPPLIES Home Depot 15.42 J21-39 BRYANT RANCH SUPPLIES Home Depot 404.04 J21-39 BRYANT RANCH SUPPLIES 20,642.43 Page 14 of 97 BOD Vendor Name Document Amount Description Hawkins, Phil Municipal Water District 20.00 ISDOC QUARTERLY LUNCH REGISTRATION - HAWKINS, P Jones, Brooke Municipal Water District 20.00 ISDOC QUARTERLY LUNCH REGISTRATION - JONES, B 40.00 9-Aug-22 Cal Card Credit Card Board of Directors Page 15 of 97 ITEM NO. 11.4. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Budget to Actual Statements for the Month Ending June 30, 2022 RECOMMENDATION: That the Board of Directors receive and file the Budget to Actual Reports for the Month Ending June 30, 2022. BACKGROUND: For the month ending June 30, 2022, staff is presenting Budget to Actual Reports for the District as a whole, as well as the individual water and sewer funds. These attached reports do not reflect the final reportable results for the year ending June 30, 2022. Cumulative Volumetric Water Revenue, as reported for the month ending June 30, 2022, reflects an average decrease of 9.85% as compared to the prior year for the same reporting period. Total Variable Costs results, as reported through the month ending June 30, 2022, reflect an approximate 10.45% increase when compared to prior year results for the same reporting period. The increase in costs is predominantly reflective of the year-to-date increase in import water purchases. ATTACHMENTS: 1. June 2022 Budget to Actual Statements Page 16 of 97 Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Period Ending June 30, 2022 Annual YTD June YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over June Actual Actual (thru vs vs FY22 FY22 FY22 FY22 YTD Budget FY21 June 2021)PY Actual $PY Actual % Revenue (Operating): Water Revenue (Residential)$15,834,595 $15,834,595 1,584,135$ 15,194,195$ (640,400)$ $1,787,702 $17,118,339 (1,924,144)-11.24% Water Revenue (Commercial & Fire Det.)1,555,486 $1,555,486 153,786 1,607,630 52,144 174,389 1,720,003 (112,373)-6.53% Water Revenue (Landscape/Irrigation)3,782,756 $3,782,756 419,208 3,839,467 56,711 477,480 4,351,773 (512,306)-11.77% Water Revenue (Service Charge)13,412,193 $13,412,193 1,129,575 13,357,644 (54,549)972,226 11,551,365 1,806,279 15.64% Water Revenue (PFAS Impact Fee)894,116 894,116 - 889,401 (4,715) 148,322 740,215 149,186 100.00% Property Taxes - CFC Charges 2,985,028 2,985,028 - 2,912,630 (72,398) - - 2,912,630 100.00% Sewer Charge Revenue 2,844,118 $2,844,118 241,647 2,902,838 58,720 209,799 2,454,035 448,803 18.29% Locke Ranch Assessments 331,878 331,878 - 330,582 (1,296) 65 301,452 29,130 9.66% Other Operating Revenue 812,526 812,526 205,694 1,265,286 452,760 141,956 870,472 394,814 45.36% Total Operating Revenue:42,452,696 42,452,696 3,734,045 42,299,673 (153,023)3,911,939 39,107,654 3,192,019 8.16% Revenue (Non-Operating): Interest 308,000 308,000 4,034 109,334 (198,666)5,551 218,231 (108,897)-49.90% Property Tax 2,025,000 2,025,000 16,429 2,126,175 101,175 14,236 2,047,105 79,070 3.86% Other Non-Operating Revenue 601,446 601,446 (25,204) 507,904 (93,542)84,578 1,226,851 (718,947)-58.60% Total Non-Operating Revenue:2,934,446 2,934,446 (4,741) 2,743,413 (191,033)104,365 3,492,187 (748,774)-21.44% Total Revenue 45,387,142 45,387,142 3,729,304 45,043,086 (344,056)4,016,304 42,599,841 2,443,245 5.74% Expenses (Operating): Variable Water Costs (G.W., Import & Power)21,329,830 21,329,830 1,459,682 20,579,427 (750,403)2,249,247 18,632,314 1,947,113 10.45% Salary Related Expenses 12,050,996 12,050,996 869,405 10,758,769 (1,292,227)1,076,541 10,417,406 341,363 3.28% Supplies & Services 6,506,608 6,506,608 586,536 6,176,720 (329,888)567,930 5,203,360 973,360 18.71% Total Operating Expenses 39,887,434 39,887,434 2,915,623 37,514,916 (2,372,518)3,893,718 34,253,080 3,261,836 9.52% Expenses (Non-Operating): Interest on Long Term Debt 1,286,985 1,286,985 105,352 1,243,328 (43,658) 106,513 1,293,830 (50,503) -3.90% Other Expense 13,365 13,365 (2,386) (78,885) (92,250)12,564 481,626 (560,511) -116.38% Total Non-Operating Expenses:1,300,350 1,300,350 102,966 1,164,443 (135,908) 119,077 1,775,456 (611,014) -34.41% Total Expenses 41,187,784 41,187,784 3,018,589.0 38,679,359 (2,508,426)4,012,795 36,028,536 2,650,823 7.36% Net Position Before Capital Contributions 4,199,358 4,199,358 710,715 6,363,727 2,164,370 3,509 6,571,305 (207,578) -3.16% Capital Contributions (Non-Cash - - - 289,612 289,612 927,778 2,051,988 (1,762,376) Transaction GASB 34 Compliant) Net Position Before Depreciation 4,199,358 4,199,358 710,715 6,653,339 2,453,982 931,287 8,623,293 (1,969,954)-22.84% Depreciation & Amortization 8,115,685 8,115,685 657,697 8,000,353 (115,332) 648,328 7,854,419 145,934 1.86% Total Net Position ($3,916,327)($3,916,327)53,018 (1,347,014) $2,569,314 $282,959 $768,874 ($2,115,888)-275.19% (With June 30, 2021 for comparison purposes) Page 17 of 97 Annual YTD June YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over June Actual Actual (thru vs vs FY22 FY22 FY22 FY22 YTD Budget FY21 June 2021) PY Actual $PY Actual % Revenue (Operating): Water Revenue (Residential)15,834,595$ $15,834,595 1,584,135$ 15,194,195$ (640,400)$ 1,787,702$ 17,118,339$ (1,924,144)$ -11.24% Water Revenue (Commercial & Fire Det.)1,555,486 1,555,486 153,786 1,607,630 52,144 174,389 1,720,003 (112,373) -6.53% Water Revenue (Landscape/Irrigation)3,782,756 3,782,756 419,208 3,839,467 56,711 477,480 4,351,773 (512,306) -11.77% Water Revenue (Service Charge)13,412,193 13,412,193 1,129,575 13,357,644 (54,549) 972,226 11,551,365 1,806,279 15.64% Water Revenue (PFAS Impact Fee)894,116 894,116 889,401 (4,715) 148,322 740,215 149,186 100.00% Water Revenue (CFC)2,985,028 2,985,028 - 2,912,630 (72,398) - - 2,912,630 100.00% Other Operating Revenue 771,723 771,723 174,406 1,077,798 306,075 70,610 721,971 355,827 49.29% Total Operating Revenue:39,235,897 $39,235,897 3,461,110 38,878,765 (357,132) 3,630,729 36,203,666 2,675,099 7.39% Revenue (Non-Operating): Interest 240,000 240,000 1,632 73,148 (166,852) 2,068 166,922 (93,774) -56.18% Property Tax 2,025,000 2,025,000 16,429 2,126,176 101,176 14,236 2,047,105 79,071 3.86% Other Non-Operating Revenue 591,046 591,046 (16,726) 365,802 (225,244) 78,313 1,203,618 (837,816) -69.61% Total Non-Operating Revenue:2,856,046 2,856,046 1,335 2,565,126 (290,920) 94,617 3,417,645 (852,519) -24.94% Total Revenue 42,091,943 42,091,943 3,462,445 41,443,891 (648,052) 3,725,346 39,621,311 1,822,580 4.60% Expenses (Operating): Variable Water Costs (G.W., Import & Power)21,329,830 21,329,830 1,459,682 20,579,427 (750,403) 2,249,247 18,632,314 1,947,113 10.45% Salary Related Expenses 10,123,000 10,123,000 745,162 9,250,765 (872,235) 921,194 8,913,281 337,484 3.79% Supplies & Services: Communications 139,402 139,402 6,198 107,644 (31,758) 8,356 141,206 (33,562) -23.77% Contractual Services 584,405 584,405 37,244 535,695 (48,710) 37,262 611,160 (75,465) -12.35% Data Processing 303,500 303,500 17,429 236,946 (66,554) 22,282 239,479 (2,533) -1.06% Dues & Memberships 82,295 82,295 6,313 83,143 848 3,043 74,387 8,756 11.77% Fees & Permits 339,889 339,889 16,959 353,822 13,933 11,767 318,316 35,506 11.15% Insurance 263,500 263,500 18,931 237,543 (25,957) 18,474 233,605 3,938 1.69% Materials 702,120 702,120 71,455 815,733 113,613 71,145 666,822 148,911 22.33% District Activities, Emp Recognition 45,026 45,026 3,915 27,347 (17,679) 1,149 19,709 7,638 38.75% Maintenance 768,630 768,630 170,616 1,044,981 276,351 79,798 445,473 599,508 134.58% Non-Capital Equipment 128,208 128,208 6,791 141,044 12,836 31,197 170,943 (29,899) -17.49% Office Expense 37,821 37,821 5,227 32,448 (5,373) 6,413 33,539 (1,091) -3.25% Professional Services 1,510,723 1,510,723 56,161 951,599 (559,124) 81,115 715,433 236,166 33.01% Training 61,277 61,277 5,901 29,149 (32,128) 5,527 27,702 1,447 5.22% Travel & Conferences 79,511 79,511 557 18,526 (60,985) 1,399 5,945 12,581 0.00% Uncollectible Accounts 8,330 8,330 (430) 14,700 6,370 4,548 12,470 2,230 17.88% Utilities 169,150 169,150 8,671 166,628 (2,522) 9,868 169,931 (3,303) -1.94% Vehicle Equipment 302,770 302,770 40,187 407,827 105,057 31,470 407,792 35 0.01% Supplies & Services Sub-Total 5,526,557 5,526,557 472,125 5,204,775 (321,782) 424,813 4,293,912 910,863 21.21% Total Operating Expenses 36,979,387 36,979,387 2,676,969 35,034,967 (1,944,420) 3,595,254 31,839,507 3,195,460 10.04% Expenses (Non-Operating): Interest on Long Term Debt 1,286,985 1,286,985 105,352 1,243,328 (43,657) 106,513 1,293,830 (50,502) -3.90% Other Expense 7,665 7,665 (2,386) (95,220) (102,885) 10,927 474,550 (569,770) -120.07% Total Non-Operating Expenses:1,294,650 1,294,650 102,966 1,148,108 (146,542) 117,440 1,768,380 (620,272) -35.08% Total Expenses 38,274,037 38,274,037 2,779,935 36,183,075 (2,090,962) 3,712,694 33,607,887 2,575,188 7.66% Net Position Before Capital Contributions 3,817,906 3,817,906 682,510 5,260,815 1,442,909 12,652 6,013,424 (752,609) -12.52% Capital Contributions (Non-Cash Transaction -- - - 176,963 176,963 779,980 1,297,379 (1,120,416) 1,297,379 GASB 34 Compliant) Net Position Before Depreciation 3,817,906 3,817,906 682,510 5,437,778 1,619,872 792,632 7,310,803 (1,873,025) -25.62% Depreciation & Amortization 6,590,000 6,590,000 532,315 6,507,197 (82,803) 524,479 6,377,037 130,160 2.04% Total Net Position (2,772,094)$ (2,772,094)$ 150,195$ (1,069,419) 1,702,675$ 268,153$ 933,766$ (2,003,185)$ -214.53% Yorba Linda Water District Water Fund For Period Ending June 30, 2022 (With June 30, 2021 for comparison purposes) Page 18 of 97 $29,904,639 $32,556,370 $32,080,275 $34,679,455 $33,248,356 $35,317,106 $39,621,311 $41,443,891 4.6% $24,606,491 $23,616,635 $26,291,431 $28,480,276 $28,405,822 $31,593,307 $33,607,887 $36,183,075 7.66% $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 June. 2015 June-16 June-17 June-18 June-19 June-20 June-21 June-22 Water Revenues & Expenses - June (excludes Depreciation, Special Items, and Contributed Capital ) Total Revenue Total Expenses Page 19 of 97 1,460,113 1,505,340 1,358,893 1,340,186  1,143,948  1,518,953  939,601  1,019,271  788,116  1,200,582  1,311,137  1,370,194  1,671,801 1,729,514 1,512,043 1,307,477  981,384 1,019,234  657,883  460,667  590,007  945,974  1,132,782  1,305,692  1,660,561 1,492,928 1,435,706 1,361,053  1,100,471  1,058,481  772,447  1,367,226  1,231,436  1,286,293  2,065,064 2,084,721  1,469,440 1,556,303 1,448,941 1,392,832  1,103,786  1,636,877  915,454  1,372,040  1,494,768  1,898,999  2,093,627  2,249,247  2,412,958 2,439,092 2,240,006 1,929,318  1,805,038  1,306,610  1,789,071  1,254,568  1,185,077  1,306,798  1,451,208  1,459,682  0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Jul Aug Sept Oct Nov Dec Jan Feb Mar April May June 5‐Year  Variable  Costs Analysis  FY18 Var Costs FY19 Var Costs FY20 Var Costs FY21 Var Costs FY22 Var Costs Page 20 of 97 Annual YTD June YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over June Actual Actual (thru vs vs FY22 FY22 FY22 FY22 YTD Budget FY21 June 2021)PY Actual $PY Actual % Revenue (Operating): Sewer Charge Revenue $2,844,118 $2,844,118 241,647$ 2,902,839$ $58,721 $209,799 $2,454,035 $448,804 18.29% Locke Ranch Assessments 331,878 $331,878 - 330,582 (1,296) 65 301,452 29,130 0.00% Other Operating Revenue 40,803 40,803 31,288 187,487 146,684 71,346 148,502 38,985 26.25% Total Operating Revenue:3,216,799 3,216,799 272,935 3,420,908 204,109 281,210 2,903,989 516,919 17.80% Revenue (Non-Operating): Interest 68,000 68,000 2,402 36,185 (31,815)3,483 51,309 (15,124)-29.48% Other Non-Operating Revenue 10,400 10,400 (8,477) 142,104 131,704 6,264 23,233 118,871 511.65% Total Non-Operating Revenue:78,400 78,400 (6,075)178,289 99,889 9,747 74,542 103,747 139.18% Total Revenue 3,295,199 3,295,199 266,860 3,599,197$ 303,998 290,957 2,978,531 620,666 20.84% Expenses (Operating): Salary Related Expenses 1,927,996 1,927,996 124,243 1,508,005 (419,991)155,348 1,504,125 3,880 0.26% Supplies & Services: Communications 24,600 24,600 1,094 19,207 (5,393)1,475 24,727 (5,520)-22.32% Contractual Services 87,335 87,335 4,502 67,449 (19,886)4,936 93,729 (26,280)-28.04% Data Processing 46,500 46,500 2,673 38,179 (8,321)3,707 35,823 2,356 6.58% Dues & Memberships 14,504 14,504 1,114 14,659 155 537 13,027 1,632 12.53% Fees & Permits 47,951 47,951 3,665 34,804 (13,147)2,228 36,137 (1,333)-3.69% Insurance 46,500 46,500 3,341 41,921 (4,579)3,260 41,370 551 1.33% Materials 73,030 73,030 1,046 57,152 (15,878)1,101 51,748 5,404 10.44% District Activities, Emp Recognition 7,946 7,946 691 4,813 (3,133)199 3,471 1,342 38.66% Maintenance 229,770 229,770 63,981 296,819 67,049 73,714 167,098 129,721 0.00% Non-Capital Equipment 63,742 63,742 667 57,730 (6,012)4,852 25,017 32,713 130.76% Office Expense 6,674 6,674 922 5,725 (949)878 5,830 (105)-1.80% Professional Services 159,417 159,417 17,443 204,131 44,714 37,996 306,437 (102,306)-33.39% Training 16,748 16,748 1,822 11,677 (5,071)1,282 6,087 5,590 91.84% Travel & Conferences 16,084 16,084 98 2,257 (13,827) 1,101 1,829 428 0.00% Uncollectible Accounts 1,470 1,470 (117) 3,415 1,945 1,204 3,436 (21)-0.61% Utilities 29,850 29,850 1,741 28,976 (874)1,741 32,006 (3,030)-9.47% Vehicle Equipment 107,930 107,930 9,728 83,031 (24,899)2,906 61,678 21,353 34.62% Supplies & Services Sub-Total 980,051 980,051 114,411 971,945 (8,106) 143,117 909,450 62,495 6.87% Total Operating Expenses 2,908,047 2,908,047 238,654 2,479,950 (428,097) 298,465 2,413,575 66,375 2.75% Expenses (Non-Operating): Other Expense 5,700 5,700 - 16,335 10,635 1,637 7,076 9,259 - Total Non-Operating Expenses:5,700 5,700 - 16,335 10,635 1,637 7,076 9,259 - Total Expenses 2,913,747 2,913,747 238,654 2,496,285 (417,462) 300,102 2,420,651 75,634 3.12% Net Position Before Capital Contributions 381,452 381,452 28,206 1,102,912 721,460 (9,145) 557,880 545,032 97.70% Capital Contributions (Non-Cash Transaction -- - - 112,649 112,649 147,798 754,610 (641,961) 754,610 GASB 34 Compliant) Net Position Before Depreciation 381,452 381,452 28,206 1,215,561 834,109 138,653 1,312,490 (96,929) -7.39% Depreciation & Amortization 1,525,685 1,525,685 125,382 1,493,155 (32,530)123,850 1,477,382 15,773 1.07% Total Net Position (1,144,233) (1,144,233) (97,176) (277,594) 866,639 14,803 (164,892) (112,702) -68.35% Yorba Linda Water District Sewer Fund For Period Ending June 30, 2022 (With June 30, 2021 for comparison purposes) Page 21 of 97 $1,974,552 $2,042,109  $2,408,050 $2,439,524  $2,730,268  $2,937,483 $2,978,531  $3,599,197    20.84% $1,219,937 $1,338,109  $1,455,716 $1,429,690 $1,360,860 $1,399,472  $2,420,651  $2,496,285    3.12%  $‐  $500,000  $1,000,000  $1,500,000  $2,000,000  $2,500,000  $3,000,000  $3,500,000  $4,000,000 June. 2015 June‐16 June‐17 June‐18 June‐19 June‐20 June‐21 June‐22 Sewer Revenues & Expenses  ‐June (excludes Depreciation, Special Items, and Contributed Capital)      Total Revenue      Total Expenses Page 22 of 97 ITEM NO. 11.5. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Cash and Investment Report for the Month Ending June 30, 2022 RECOMMENDATION: That the Board of Directors receive and file the Cash and Investment Report for the Period Ending June 30, 2022. BACKGROUND: The Cash and Investment Portfolio Report presents the market value and percent yield for all District investments by institution. The Cash & Investment Summary Report includes budget and actual interest and average term portfolio information as well as market value broken out by reserve categories. The Fair Value Measurement Report categorizes investments by the fair value hierarchy established by generally accepted accounting principles. The Unrestricted Reserves and Days in Cash Graph presents Water Unrestricted Reserve Balances and Days in Cash at a particular point in time for the last seven years. The average portfolio yield for the month ending June 30, 2022 is 0.74%. The District's Total Cash and Investment balance as of June 30, 2022 resulted in an overall increase from the previous month by approximately $2.7 million. Large balance changes include: a combined increase in the Water & Sewer Operating Funds of approximately $2.8 million due to positive net revenue operating results; an increase in the Water Capital Project fund of approximately $324,000 due the replenishment of reserve from a draw from the Bank of America Line of Credit; and a decrease in the restricted PARS account of approximately $377,000 due to a reimbursement to the District for Pay-Go Retiree benefit costs. ATTACHMENTS: 1. Cash and Investment Reports and Graphs for June 2022 Page 23 of 97 Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 980,212$ 980,212$ Wells Fargo Bank 980,212$ 980,212$ 2.17% Total 0.00% Depository Account 1,024,344$ 1,024,344 US Bank Depository Account (Cielo Vista) 0.01% 1,024,344$ 1,024,344$ 2.26% Money Market Accounts: -$ -$ US Bank (Revenue Bonds) 0.00% 4,306,078$ 4,306,078 US Bank (Money Market) 0.01% 1,139,166$ 1,139,166 Public Agency Retirement Svcs. (PARS) 5,445,245$ 5,445,245$ 12.03% Total 0.01% Pooled Investment Accounts: 37,809,496$ 37,809,496$ Local Agency Investment Fund 0.86% 37,809,496$ 37,809,496$ 83.54% 0.86% 45,259,297$ 45,259,297$ 100% Total Investments 0.74% Per Government Code requirements, the Investment Report is in compliance with the Yorba Linda Water District's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. 6/30/22 Yorba Linda Water District Cash & Investment Portfolio Report June 30, 2022 ________________________________ Delia Lugo, Finance Manager Page 24 of 97 Below is a chart summarizing the yields as well as terms and maturities for the month of June 2022: Average # of Month Portfolio Days to of 2022 Yield Maturity June 0.74% 1 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 6/30/2021 6/30/2022 Monthly - June 5,551$ 4,034$ Year-to-Date 218,231$ 109,334$ Budget 2020/2021 2021/2022 Interest Budget, June YTD 705,000$ 308,000$ Interest Budget, Annual 705,000$ 308,000$ Interest earned on investments is recorded in the fund that owns the investment. The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: The table below displays the District's Cash and Investment balance of $45.6 million which is allocated between the established reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for the Bond payment and PARS for the pension/OPEB payments. The number of Days in Cash are 348 for the Un-Restricted Water Reserve balance and 1,006 for the Un-Restricted Sewer Reserve balances, as of June 30, 2022, which are subject to change with the final audited numbers. FY22 Reserve Cash and Requirements Investments May 2022 % Alloc June 2022 % Alloc "Target Available for Fund Description Balance 5/31/2022 Balance 6/30/2022 Levels" CY Obligations Water Operating Reserve 17,244,751$ 43.99% 19,620,981$ 46.59% 16,790,090$ 2,830,891$ Water Emergency Reserve 7,336,090 18.71% 7,335,831 17.42% 6,915,040 420,791 Water Capital Project Reserve 2,586,538 6.60% 2,910,442 6.91% 11,861,304 (8,950,862) MWD Contingency Reserve - 0.00% - 0.00% 0 0 Rate Stabilization Reserve 4,246,603 10.83% 4,251,271 10.09% 4,195,582 55,689 Un-Restricted Water Reserve Balance 31,413,982 34,118,525$ 39,762,016 (5,643,491) Conservation Reserve 106,064$ 0.27% 106,064$ 0.25% 105,769 295 Employee Liability Reserve 309,902 0.79% 309,902 0.74% 309,040 862 Restricted Reserve Balance 415,966 415,966$ 414,809 1,157 Sewer Operating Reserve 4,800,297$ 12.24% 5,083,268$ 12.07% 2,945,513 2,137,755 Sewer Emergency Reserve 1,965,691 5.01% 1,971,423 4.68% 1,926,014 45,409 Sewer Capital Project Reserve 606,357 1.55% 526,393 1.25% 1,837,000 (1,310,607) Un-Restricted Sewer Reserve Balance 7,372,346 7,581,083$ 6,708,527 872,556 Total Reserve Balances 39,202,294$ 100.00% 42,115,574$ 100.00% 46,885,352$ (4,769,778)$ Water Operating 598,706 877,777 Sewer Operating 212,478 102,434 811,184 980,212 Rev. Bond 2012A & 2017A-Principal & Interest - - Depository Account - Cielo Vista Development 1,024,343 1,024,344 Public Agency Retirement Svc. -PARS (Restricted)1,554,218 1,139,166 Total Cash and Investments 42,592,039$ 45,259,297$ Cash & Investment Summary Report Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) Page 25 of 97 Checking Account:980,212$ 2.17% Money Market Accounts:5,445,245$ 12.03% Certificates of Deposit:-$ 0.00% Pooled Investment Accounts:37,809,496$ 83.54% Depository Account 1,024,344$ 2.26% Total 45,259,297$ 100.00% Checking Account: 2.17% Money Market Accounts: 12.03 Pooled Investment Accounts: 83.54% Depository Account 2.26% INVESTMENT BALANCES (AS OF 6-30-2022) Checking Account:Money Market Accounts:Certificates of Deposit:Pooled Investment Accounts:Depository Account Page 26 of 97 $27,997,128 $30,280,309 $30,253,433 $31,326,019 $32,587,184 $34,118,525 396 399 425 368 369 348 60 110 160 210 260 310 360 410 460 $20,000 $5,020,000 $10,020,000 $15,020,000 $20,020,000 $25,020,000 $30,020,000 $35,020,000 $40,020,000 Jun. 17 Jun. 18 Jun. 19 Jun. 20 Jun. 21 Jun. 22 Unrestricted Reserves & Days in Cash - June Unrestricted Reserves (Water)Days in Cash (Water) Page 27 of 97 Yorba Linda Water District Fair Value Measurement Report June 30, 2022 Quoted Observable Unobservable Prices Inputs Inputs Investments Level 1 Level 2 Level 3 Total Local Agency Investment Fund - 37,809,496 - 37,809,496 Total Investments -$ 37,809,496$ -$ 37,809,496$ Page 28 of 97 Transaction Date Transaction Description Water Operating Pension Water Operating OPEB Sewer Operating Pension Sewer Operating OPEB Account Total Beginning Balance as of 7/1/20 870,961.56 662,095.61 90,207.30 78,236.46 1,701,500.93 7/31/2021 Management Fees (429.46) (326.47) (44.48) (38.57) 1,700,661.95 7/31/2021 Investment Gain/(Loss) 4,178.40 3,176.38 432.77 375.33 1,708,824.83 8/31/2021 Management Fees (433.71)(329.71)(44.92)(38.96) 1,707,977.53 8/31/2021 Investment Gain/(Loss) 10,390.85 7,899.01 1,076.20 933.39 1,728,276.98 9/30/2021 Management Fees (433.75) (329.73) (44.92) (38.96)1,727,429.62 9/30/2021 Investment Gain/(Loss) (24,087.23) (18,310.85) (2,494.76) (2,163.70)1,680,373.08 10/31/2021 Management Fees (434.79) (330.53) (45.03) (39.06) 1,679,523.67 10/31/2021 Investment Gain/(Loss) 22,700.96 17,257.02 2,351.19 2,039.17 1,723,872.01 11/30/2021 Management Fees (432.17) (328.52) (44.76) (38.82) 1,723,027.74 11/30/2021 Investment Gain/(Loss) (12,525.82) (9,521.99) (1,297.33) (1,125.15)1,698,557.45 12/31/2021 Management Fees (435.58) (331.11) (45.11) (39.13)1,697,706.52 12/31/2021 Investment Gain/(Loss) 16,930.70 12,870.54 1,753.55 1,520.85 1,730,782.16 1/31/2022 Management Fees (435.94) (331.40) (45.15) (39.16)1,729,930.51 1/31/2022 Investment Gain/(Loss) (28,955.65) (22,011.78) (2,999.00) (2,601.02)1,673,363.06 2/28/2022 Management Fees (433.84)(329.80)(44.93)(38.97)1,672,515.52 2/28/2022 Investment Gain/(Loss) (13,188.51)(10,025.77)(1,365.96)(1,184.69)1,646,750.59 3/31/2022 Management Fees (422.92) (321.52) (43.80) (37.99)1,645,924.36 3/31/2022 Investment Gain/(Loss) (1,853.34)(1,408.89)(191.95)(166.48)1,642,303.70 4/30/2022 Management Fees (412.61)(313.65)(42.73)(37.06)1,641,497.65 4/30/2022 Investment Gain/(Loss) (46,496.01)(35,345.76)(4,815.69)(4,176.63)1,550,663.56 5/31/2022 Management Fees (398.70)(303.09)(41.29)(35.81)1,549,884.67 5/31/2022 Investment Gain/(Loss) 2,218.36 1,686.38 229.76 199.27 1,554,218.44 6/30/2022 Reimburse FY21 & 22 Retiree Pay-go (287,246.35)(50,690.53)1,216,281.56 6/30/2022 Management Fees (386.25)(293.65)(40.01)(34.70)1,215,526.95 6/30/2022 Investment Gain/(Loss) (40,879.29)(27,945.39)(4,233.96)(3,302.16)1,139,166.15 Account Balance by Account Type 754,305.26 289,298.98 78,124.99 17,436.92 1,139,166.15$ 66.22% 25.40% 6.86% 1.53% 100% Pension OPEB Total Initial Contribution as of 12/28/2017 247,599.00$ - 247,599.00 Additional Contribution 6/26/19 1,105,248.00$ 587,339.00 1,692,587.00 Total Contributions 1,940,186.00 Total Distribution to CalPERS (631,392.00)$ - (631,392.00) Total Distribution to YLWD (337,936.88)$ (337,936.88) Total Gain (or Loss) from Inception 130,497.32$ 68,771.93 199,269.25 Total Management Fees from Inception (19,522.07)$ (11,438.15) (30,960.22) Balance as of 6/30/22 832,430.25$ 306,735.90$ 1,139,166.15$ PARS (Public Agency Retirement Services) Funding Reconciliation Page 29 of 97 ITEM NO. 11.6. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Rosanne P. Weston, Engineering Manager Danielle Logsdon, Principal Engineer Ammar Tohmeh, Senior Engineer SUBJECT: Notice of Completion for FY22 Sewer CIPP Rehabilitation Project RECOMMENDATION: That the Board of Directors authorize staff to file the Notice of Completion for the FY22 Sewer CIPP Rehabiliation Project, Job No. J-2021-28S. SUMMARY: Construction is complete on the FY22 Sewer CIPP Rehabilitation Project. Submitted for consideration is a request to authorize the filing of the Notice of Completion for the project. FISCAL IMPACT: Total Budget: $440,000 Contractor's Bid Amount: $328,748.86 Final Contractor Cost: $284,493.35 Funding Source: Capital Job No: J-2021-28S BACKGROUND: Construction is complete on the FY22 Sewer CIPP Rehabilitation Project. The project included the rehabilitation of 2,857 linear feet of sanitary sewer mains ranging from 8-inches to 12-inches in diameter using cured-in-place-pipe (CIPP) technology. In addition, fifteen (15) sewer manholes were rehabilitated, a manhole was abandoned, and a new manhole was constructed. All work has been completed in accordance with the contract documents and to the satisfaction of District staff. The project was completed under budget and on schedule. Staff requests authorization to file and proceed with the recordation of the Notice of Completion. PRIOR RELEVANT BOARD ACTION: On June 22, 2021, the Board of Directors approved the Sewer System Rehabilitation and Replacement Project as part of the FY21-22 Annual Budget Document. This project was awarded by Page 30 of 97 the Board of Directors on January 11, 2022. STRATEGIC PLAN INITIATIVES: G1 4A - Address infrastructure needs by updating/implementing the Asset Management Plan. Page 31 of 97 ITEM NO. 11.7. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Rosanne P. Weston, Engineering Manager Reza Afshar, Senior Engineer Adrian Ayala, Assistant Engineer I SUBJECT: Declaration of Restrictive Covenants with Juan Ma of 5992 Jasper Drive, Yorba Linda RECOMMENDATION: That the Board of Directors authorize the Board President and Interim General Manager to execute a Declaration of Restrictive Covenants with Juan Ma of 5992 Jasper Drive, Yorba Linda. SUMMARY: The District has a recorded dedicated easement located within Lot 12 of Tract No. 18061.The property owner, Juan Ma, is requesting permission to construct new improvements inside of the easement and to retain existing encroachments as shown in the attached exhibit. Engineering staff reviewed the encroachments and recommend execution, subject to review as to form by General Counsel. FISCAL IMPACT: None. BACKGROUND: Property owner Juan Ma has existing improvements on her property that encroach on a 25- foot wide easement dedicated to the District at 5992 Jasper Drive (Lot 12 of Tract No. 18061), and is requesting permission to construct new improvements that encroach on the easement. The proposed encroachments include (1) a 2-inch gas line with tracer wire, a 1 1/4-inch electrical conduit, a 6-inch deck and fire pit which all abut the easement area, (2) modifications to an existing 6-foot high block wall which include a proposed double gate and a proposed 5-foot high man gate, and (3) an existing concrete driveway. The existing and proposed improvements run parallel and across the easement as shown in the enclosed exhibit.The District has an existing 8-inch waterline, an 8-inch sewer line and a manhole within the easement. Staff reviewed the applicant's request and determined that the encroachments would have minimal impact on the day-to-day operation and maintenance of the District's facilities. However, if the District needs to excavate within the easement to facilitate repairs or replacement of either the public water Page 32 of 97 or sewer system, the subject property owner improvements may need to be removed and may be damaged in the process. The owner understands that with the execution of the Declaration of Restrictive Covenants, the District would not be liable for the replacement of these improvements. Staff recommends the execution of the Declaration of Restrictive Covenants, subject to approval as to form by General Counsel. PRIOR RELEVANT BOARD ACTION: The Board of Directors has authorized the execution of similar Declarations of Restrictive Covenants with various developers and property owners. ATTACHMENTS: 1. Declaration of Restrictive Covenants 2. Exhibit Page 33 of 97 Page 1 of 5 YLWD – Dec of Restrictive Covenants (8/21) RECORDING REQUESTED BY and when recorded return to: Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 This is to certify that this Declaration of Restrictive Covenants is presented for recording under the provisions of Gov. Code Sec. 27383 by the Yorba Linda Water District in performance of an official service thereof. ____________________________________ Douglass S. Davert Interim General Manager Space Above This Line for Recorder’s Use DECLARATION OF RESTRICTIVE COVENANTS (ENCROACHMENT ON YLWD EASEMENT) THIS DECLARATION OF RESTRICTIVE COVENANTS (“Declaration”) is made and effective on August 9, 2022 by and between YORBA LINDA WATER DISTRICT (“YLWD”), a public agency, created and operating under the authority of Division 12 of the California Water Code, and Juan Ma (“Owner”). YLWD and Owner are sometimes referred to herein individually as “Party” and collectively as “Parties”. RECITALS A. The Owner is the legal owner of that certain real property located at 5992 Jasper Drive (“Subject Property”), which is more particularly described as follows: LOT 12 OF TRACT NO. 18061, IN THE CITY OF YORBA LINDA, COUNTY OF ORANGE, SATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 977, PAGES 44 THROUGH 48, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SEPTEMBER 27, 2018. B. YLWD owns an Easement, as identified on a Tract Map No. 18061, recorded on September 27, 2018, in Book 977, Pages 44 through 48, Official Records of Orange County, California (“Easement”), across a portion of the Subject Property. Within the Easement, YLWD owns and maintains an 8-inch sewer main pipeline, sewer manhole, and an 8-inch distribution water pipeline and appurtenant structures (“YLWD Facilities”). C. The Owner desires to (1) construct a new 2-inch gas line with tracer wire, a 1-1/4- inch electrical conduit, a 6-inch raised deck and fire pit which all abut the Easement area, (2) modify an existing 6-foot block wall by adding a new double gate and 5-foot man gate, and (3) Page 34 of 97 Page 2 of 5 YLWD – Dec of Restrictive Covenants (8/21) retain an existing concrete driveway (collectively herein referred to as “Improvements”) within and along the Easement area. This Declaration prohibits Owner, without YLWD’s authorization and a recorded amendment to this Declaration, from constructing and/or retaining any improvements (“Unauthorized Improvements”) other than the Improvements. D. The construction, existence, and/or use of the Improvements within and along the Easement area is hereinafter referred to as the “Encroachment”, which is illustrated in Exhibit “A” attached hereto. E. YLWD conditionally consents to the Encroachment as stipulated in this Declaration. The Owner is aware and hereby acknowledges that the Encroachment may lead to problems affecting and/or interfering with YLWD’s use of the Easement and access to YLWD Facilities. F. Although the construction and subsequent existence of the Improvements within and along the Easement area may interfere or restrict YLWD’s Easement rights, which may cause the Improvements to be damaged or demolished as authorized under this Declaration, the Owner wishes to proceed with the Encroachment. DECLARATION NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties declare as follows: 1. Covenant Running with Land. This Declaration constitutes a covenant running with the land as provided by the California Civil Code Section 1468 and shall benefit, burden, and bind the successive owners of the Subject Property and the Easement. 2. Successors and Assigns Obligation. Since the Owner wishes to retain the Encroachment, this Declaration obligates the current and future owners of the Subject Property to remedy any current and future adverse events and to fund any necessary maintenance and repair costs on the Easement and/or Subject Property that may arise in full or in part due to the existence, construction, or damages to the Easement and/or YLWD Facilities caused by the Encroachment. 3. Damages to YLWD Facilities. The Owner assumes full responsibility and liability and shall pay for any cost(s) or damage(s) to the YLWD Facilities, arising from the Encroachment. YLWD shall not be responsible for any cost(s) or damage(s) to the YLWD Facilities that arise from the Encroachment. 4. Damages to Third Parties. The Owner, its successors or assigns, agrees to defend, indemnify and hold YLWD, its officers, directors, employees, agents, and consultants, harmless against any third-party claims arising out of the Encroachment. 5. Damages to Improvements. The Owner acknowledges that the Improvements may be damaged or demolished to permit access to, or work within and under, the Easement area Page 35 of 97 Page 3 of 5 YLWD – Dec of Restrictive Covenants (8/21) and YLWD Facilities. YLWD, its officers, directors, employees, agents, and consultants, shall not be responsible or liable for any damage(s) to, or demolition of, the Improvements which result from YLWD’s exercise of rights under the Easement. The Owner, its successors or assigns, waives all known, unknown, and future claims, liabilities, causes of action, and expenses (including, but not limited to, attorneys’ fees) against YLWD, its officers, directors, employees, agents, and consultants, for losses and damages to the Improvements and from any obligation to protect, preserve, repair, or replace the Improvements. 6. Unauthorized Improvements. Owner shall not construct and/or retain any improvements other than the Improvements. If Owner constructs and/or retains any improvement other than the Improvements, YLWD may (a) require the improvement to be removed promptly at the Owner’s expense, (b) revoke the Encroachment, and/or (c) exercise any other legal remedy available to YLWD. Such Unauthorized Improvements shall be treated as Improvements and subject to this Declaration until YLWD makes it election under (a), (b), and/or (c) of this provision. GENERAL PROVISIONS 7. Recitals. The above recitals are true and correct. 8. Entire Agreement. This Declaration represents the entire and integrated agreement between the Parties and supersedes all prior negotiations, representations, or agreements, either written or oral. 9. Amendment to this Declaration. This Declaration may be amended only by written instrument signed by the Parties. 10. No Implied Waivers. If any term, condition, or provision of this Declaration is breached by either Party and thereafter waived by the other Party, that waiver will be limited to the specific breach so waived, and will not be deemed either to be a continual waiver or to waive any other breach under this Declaration. 11. Governing Law and Interpretation. This Declaration is to be governed under the laws of the State of California and interpreted according to its plain meaning as if drafted by both YLWD and Owner. 12. Relationship of Parties. Nothing in this Declaration shall be deemed to create any form of business organization between the Parties, including, without limitation, a joint venture or partnership. 13. Resolution of Disputes. Pursuant to California Code of Civil Procedure Sections 638 et seq., any dispute arising out of this Declaration shall be resolved by judicial reference, in Orange County, by one judicial referee to determine all issues in dispute, whether of fact or of law, and to report a statement of decision. This is a waiver of any right that may exist to a jury trial, but the right to appeal is preserved. Page 36 of 97 Page 4 of 5 YLWD – Dec of Restrictive Covenants (8/21) The Parties shall meet to select the referee no later than thirty (30) days after service of the initial complaint on all defendants named in the complaint. The referee must have substantial experience in the type of matter in dispute and without any relationship to either Party, unless the Parties agree otherwise. All costs incurred in connection with the judicial reference proceeding, including the cost of the stenographic record, shall be advanced equally by the Parties. However, the refer ee shall have the power to reallocate such costs among the Parties in the referee’s statement of decision. 14. Attorney’s Fees. In the event of any claim or legal action arising out of this Declaration, the prevailing party shall be entitled to reasonable costs and expenses, including attorney’s fees. 15. Severability. If any provision, right, or covenant of this Declaration is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the voided provision, right, or covenant shall be deemed severed from the remaining provisions of this Declaration, which shall remain valid and enforceable as permitted by law, and the Parties shall negotiate in good faith to replace the unenforceable provision(s) in accordance with the original purpose and intent of this Declaration so stated in the above Recitals. 16. Counterparts. This Declaration may be signed in multiple counterpart copies (signatures may be by facsimile or electronic mail), each of which shall be deemed an original. 17. Capacity of Signatory. The undersigned executing this Declaration on behalf of YLWD and Owner hereby personally warrant by signing this Declaration that they are authorized to bind such Party in executing this Declaration and are acting within the course and scope of that authority. 18. Recording of Declaration. This Declaration shall be recorded in the Office of the Recorder of the County of Orange, California, and shall constitute notice to all successors and assigns of the title to the Subject Property of the rights and obligations in this Declaration. Page 37 of 97 Page 5 of 5 YLWD – Dec of Restrictive Covenants (8/21) Approved as to Form: YORBA LINDA WATER DISTRICT Kidman Gagen Law, LLP _______________________________ Andrew B. Gagen J. Wayne Miller General Counsel President Douglass S. Davert Rosanne P. Weston Interim General Manager Engineering Manager OWNER: Juan Ma Page 38 of 97 Page 39 of 97 ITEM NO. 11.8. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Rosanne P. Weston, Engineering Manager Reza Afshar, Senior Engineer Ariel Bacani, Assistant Engineer III SUBJECT: Quitclaim Deeds of 4858 and 4876 Main Street RECOMMENDATION: That the Board of Directors authorize the Interim General Manager to execute the Quitclaim Deeds to Longball Investments, LLC, abandoning two sets of recorded easements of the Official Records of Orange County, California. SUMMARY: Longball Investments, LLC, requested the District to abandon its existing sewer easements within its properties at 4858 and 4876 Main Street, and APN 323-324-15 (Arroyo Way), Yorba Linda. The two sets of easements were both recorded on August 11, 1965, in the Official Records of Orange County, California. FISCAL IMPACT: None. BACKGROUND: Longball Investments, LLC intends to improve its properties that will impact the District's Sewer Line on said properties. To facilitate its improvements, Longball Investments requested the District to transfer ownership of the Sewer Line on its properties to Longball Investments. This transference will cause the District's Sewer Line on the neighboring property, 4842 Main Street, owned by Transformation Ministries, to be isolated from the public sewer system. To accommodate Longball Investments' request for ownership and control of the Sewer Line on its properties, Transformation Ministries will take ownership and control of the District's Sewer Line on its properties and concurrently transfer ownership and control to Longball Investments through the Sewer Transfer Agreement with the District. Longball Investments will own and maintain the entire Sewer Line on both properties. Both Longball Investments and Transformation Ministries request the District to quitclaim its sewer easements on their respective properties because the District no longer needs to access the Sewer Line once it is transferred to Longball Investments in its entirety. The attached Quitclaim Deeds Page 40 of 97 pertain to Longball Investments, LLC. PRIOR RELEVANT BOARD ACTION: The Board of Directors has authorized the execution of similar Quitclaim Deeds with various developers and property owners. ATTACHMENTS: 1. Quitclaim Deed - 4858 & 4876 Main St 2. Quitclaim Deed - APN 323-324-15 Page 41 of 97 FEE WAIVED PER GOV. CODE §§ 6103 AND 27383 MAIL TAX STATEMENTS AS DIRECTED ABOVE RECORDING REQUESTED BY: Yorba Linda Water District, a public agency MAIL TAX STATEMENTS AND WHEN RECORDED MAIL TO: Longball Investments, LLC 650 N. Rose Drive #185 Placentia, CA 92870 Attn: Matthew Luke Order No.: Escrow No.: APN: 323-324-16 SPACE ABOVE THIS LINE IS FOR RECORDER’S USE QUITCLAIM DEED THE UNDERSIGNED GRANTOR(S) DECLARE(S): DOCUMENTARY TRANSFER TAX IS $_0.00_________________________ _____ Computed on full value of property conveyed, or _____ Computed on full value less liens and encumbrances remaining at time of sale. _____ Unincorporated area _____ City of _______________________________ For valuable consideration, receipt of which is hereby acknowledged, Yorba Linda Water District, a public corporation of the state of California hereby REMISE(S), RELEASE(S) AND QUITCLAIM(S) to Longball Investments, LLC, the real property situated in the County of Orange, State of California, more particularly described and depicted in the easement deed to Yorba Linda County Water District, recorded A ugust 11, 1965, in Book 7626, Pages 817 to 82 0, of Official Records, attached hereto as Exhibit 1. YORBA LINDA WATER DISTRICT Dated: ___________________________ ___________________________________________ Douglass S. Davert Interim General Manager A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) SS. COUNTY OF _____________________________ ) On ________________________ before me, ______________________________________, Notary Public, personally appeared _______________________________________________________________________________________, who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument . I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is tr ue and correct. WITNESS my hand and official seal. Signature_________________________________________ Page 42 of 97 Exhibit 1 Pages 817 to 82 0 of Book 7626 of Official Records Page 43 of 97 Page 44 of 97 Page 45 of 97 Page 46 of 97 Page 47 of 97 FEE WAIVED PER GOV. CODE §§ 6103 AND 27383 MAIL TAX STATEMENTS AS DIRECTED ABOVE RECORDING REQUESTED BY: Yorba Linda Water District, a public agency MAIL TAX STATEMENTS AND WHEN RECORDED MAIL TO: Longball Investments, LLC 650 N. Rose Drive #185 Placentia, CA 92870 Attn: Matthew Luke Order No.: Escrow No.: APN: 323-324-15 SPACE ABOVE THIS LINE IS FOR RECORDER’S USE QUITCLAIM DEED THE UNDERSIGNED GRANTOR(S) DECLARE(S): DOCUMENTARY TRANSFER TAX IS $_0.00_________________________ _____ Computed on full value of property conveyed, or _____ Computed on full value less liens and encumbrances remaining at time of sale. _____ Unincorporated area _____ City of _______________________________ For valuable consideration, receipt of which is hereby acknowledged, Yorba Linda Water District, a public corporation of the state of California hereby REMISE(S), RELEASE(S) AND QUITCLAIM(S) to Longball Investments, LLC, the real property situated in the County of Orange, State of California, more particularly described and depicted in the easement deed to Yorba Linda County Water District, recorded August 11, 1965, in Book 7626, Pages 821 to 826, of Official Records , attached hereto as Exhibit 1. YORBA LINDA WATER DISTRICT Dated: ___________________________ ___________________________________________ Douglass S. Davert Interim General Manager A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) SS. COUNTY OF _____________________________ ) On ________________________ before me, ______________________________________, Notary Public, personally appeared _______________________________________________________________________________________, who proved to me on the basis of satisfactory evidence) to be the person(s) w hose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf o f which the person(s) acted, executed the instrument . I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature_________________________________________ Page 48 of 97 Exhibit 1 Pages 821 to 826 of Book 7626 of Official Records Page 49 of 97 Page 50 of 97 Page 51 of 97 Page 52 of 97 Page 53 of 97 Page 54 of 97 ITEM NO. 11.9. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Rosanne P. Weston, Engineering Manager Reza Afshar, Senior Engineer Ariel Bacani, Assistant Engineer III SUBJECT: Quitclaim Deed of 4842 Main Street RECOMMENDATION: That the Board of Directors authorize the Interim General Manager to execute the Quitclaim Deed to Transformation Ministries, abandoning the recorded easement of the Official Records of Orange County, California. SUMMARY: Transformation Ministries requested the District to abandon its existing sewer easement within their property at 4842 Main Street, Yorba Linda. The easement was originally recorded on August 11, 1965, of the Official Records of Orange County, California. FISCAL IMPACT: None. BACKGROUND: Longball Investments, LLC intends to improve its property at 4858 and 4876 Main Street that will impact the District's Sewer Line on said property. To facilitate its improvements, Longball Investments requested the District to transfer ownership of the Sewer Line on its property to Longball Investments. This transference will cause the District's Sewer Line on Transformation Ministries' property at 4842 Main Street, to be isolated from the public sewer system. To accommodate Longball Investments' request for ownership and control of the Sewer Line on its property, Transformation Ministries will take ownership and control of the District's Sewer Line on its property and concurrently transfer ownership and control to Longball Investments through the Sewer Transfer Agreement with the District. Longball Investments will own and maintain the entire Sewer Line on both properties. Both Longball Investments and Transformation Ministries request the District to quitclaim its sewer easements on their respective properties because the District no longer needs to access the Sewer Line once it is transferred to Longball Investments in its entirety. The attached Quitclaim Deed pertains to Transformation Ministries. Page 55 of 97 PRIOR RELEVANT BOARD ACTION: The Board of Directors has authorized the execution of similar Quitclaim Deeds with various developers and property owners. ATTACHMENTS: 1. Quitclaim Deed - 4842 Main St Page 56 of 97 FEE WAIVED PER GOV. CODE §§ 6103 AND 27383 MAIL TAX STATEMENTS AS DIRECTED ABOVE RECORDING REQUESTED BY: Yorba Linda Water District, a public agency MAIL TAX STATEMENTS AND WHEN RECORDED MAIL TO: Transformation Ministries 970 S. Village Oaks Dr., Ste. 101 Covina, CA 91724 Attn: Thomas W. Niermann Order No.: Escrow No.: APN: 323-324-01 SPACE ABOVE THIS LINE IS FOR RECORDER’S USE QUITCLAIM DEED THE UNDERSIGNED GRANTOR(S) DECLARE(S): DOCUMENTARY TRANSFER TAX IS $_0.00_________________________ _____ Computed on full value of property conveyed, or _____ Computed on full value less liens and encumbrances remaining at time of sale. _____ Unincorporated area _____ City of _______________________________ For valuable consideration, receipt of which is hereby acknowledged, Yorba Linda Water District, a public corporation of the state of California hereby REMISE(S), RELEASE(S) AND QUITCLAIM(S) to Transformation Ministries, the real property situated in the County of Orange, State of California, more particularly described and depicted in the easement deed to Yorba Linda County Water District, recorded N ovember 1, 1965, in B ook 7724, Pages 298 to 303, of Official R ecords, attached hereto as Exhibit 1. YORBA LINDA WATER DISTRICT Dated: ___________________________ ___________________________________________ Douglass S. Davert Interim General Manager A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) SS. COUNTY OF _____________________________ ) On ________________________ before me, ______________________________________, Notary Public, personally appeared _______________________________________________________________________________________, who proved to me on the basis of satisfactory evidence) to be the person(s ) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behal f of which the person(s) acted, executed the instrument . I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature_________________________________________ Page 57 of 97 Exhibit 1 Pages 298 to 303 of Book 7724 of Official Records Page 58 of 97 Page 59 of 97 Page 60 of 97 Page 61 of 97 Page 62 of 97 Page 63 of 97 ITEM NO. 12.1. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Doug Davert, Interim General Manager SUBJECT: Response to Orange County Grand Jury Report - Water in Orange County Needs "One Voice" RECOMMENDATION: That the Board of Directors approve the response to the Orange County Grand Jury's report. ATTACHMENTS: 1. Orange County Grand Jury Report - Water in Orange County Needs "One Voice" 2. YLWD Draft Response Page 64 of 97 Water in Orange County Needs “One Voice” GRAND JURY 2021-2022 Page 65 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 2 Table of Contents SUMMARY ................................................................................................................................... 3 BACKGROUND ........................................................................................................................... 4 REASON FOR THE STUDY ...................................................................................................... 4 METHOD OF STUDY ................................................................................................................. 4 INVESTIGATION AND ANALYSIS ......................................................................................... 5 Status Quo ............................................................................................................................... 5 Differences in Supply Sources ............................................................................................. 10 History, Governance and Authorizing Legislation.............................................................. 11 Services Provided by Wholesalers & Retailers .................................................................... 12 Where Do We Go from Here? .............................................................................................. 13 FINDINGS ................................................................................................................................... 16 RECOMMENDATIONS ............................................................................................................ 16 COMMENDATIONS ................................................................................................................. 17 RESPONSES ............................................................................................................................... 17 Responses Required .............................................................................................................. 18 Responses Requested ............................................................................................................ 19 GLOSSARY................................................................................................................................. 22 Page 66 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 3 SUMMARY The future of a reliable water supply for California, as well as Orange County (OC), is at risk. The intense dry spell in the West, the worst in 1,200 years, is being labeled a “Mega Drought.”0F 1 Multiple years of drought and inconsistent availability of imported surface water from Northern California and the Colorado River should inspire OC leaders responsible for a reliable water supply to consider new ways to offset the likely depletion of aquifers and reservoirs. Ronald Reagan once said: “No government ever voluntarily reduced itself in size.” However, it is important that Orange County water providers consolidate their resources and establish a unified voice to lead the County more efficiently in its water policies and planning. Multiple water experts agree it is time to coordinate strategies in water conservation, development of new supply and infrastructure, and preparation for the possibility of continued drought, disaster, and State-mandated water cutbacks. Providing water to Orange County residents is a complicated process and requires the work of water wholesalers and retailers. Retail water agencies (districts and cities) are the direct link to residential and commercial customers. It is they who set the retail price for the water that is delivered. Providers of drinkable water to these retail entities are the wholesalers (suppliers) of imported and local groundwater from the aquifer. The current structure of wholesale water supply and operations in Orange County, although fragmented between Orange County Water District (OCWD), Metropolitan Water District of Southern California (MET), and Municipal Water District of Orange County (MWDOC), has been successful in providing reliable, high-quality drinking water. While differences in geology and geography dictate different water supplies, no single governmental body is solely responsible for wholesale water policy and operations in Orange County, even though providing future reliable water supply is becoming more challenging. While the processes of supplying wholesale groundwater and imported water are arguably dramatically different, complex, and should remain separated in OC, the Orange County Grand Jury (OCGJ) has determined that all sources of water are interconnected and would be best administered by one governmental entity. All the water flowing to OC taps looks the same, whether imported or groundwater, so why do we need two wholesale agencies? This single leadership structure, whether through consolidation of existing dual entities (OCWD and MWDOC) or creation of a new water authority, is achievable through a combination of governance and local and State legislative changes that authorizes the single organization to lead all aspects of Orange County wholesale water. Although any consolidation or formation of a new water agency would pose political, administrative, and operational challenges, the OCGJ concluded that, at long last, it is time for Orange County to operate with “one water voice.” 1 February 14, 2022, Peer reviewed study published in the journal Nature Climate Change https://doi.org/10.1038/s41558-022-01290-z Page 67 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 4 BACKGROUND Multiple prior Grand Jury Reports have addressed water issues, including water challenges and opportunities jointly being faced by all of Orange County. One report pointed out disparities between the North/Central and South County’s water sources, the fragmented governance, and the significant differences in topography.1F 2 Another report informed the public about sustainability of the local water supply and future needs, along with evaluating the efforts of the two major wholesale water agencies in the County.2F 3 Orange County relies heavily on imported water for its ongoing supply, as well as some of its groundwater storage replenishment needs. Metropolitan Water District of Southern California (MET) supplies imported water to Southern California. Municipal Water District of Orange County (MWDOC) buys imported water from MET and sells it to Orange County’s retail water agencies (cities and special districts). Orange County Water District (OCWD) supplies ground water to the retail water agencies and cities geographically served by the aquifer and wells. REASON FOR THE STUDY The consolidation of OCWD and MWDOC has been explored in the past, debated by wholesale and retail water agencies, but ultimately never accomplished. The formation of a new Joint Powers Authority is one option. But no matter how a consolidation would be accomplished, the OCGJ concluded that now is the time to have a single wholesale water supply agency in Orange County. Based on statements made during numerous OCGJ interviews, multiple water professionals support moving from two to one wholesale entity for Orange County. The OCGJ is concerned that opportunities to operate, innovate, lobby, capitalize and coordinate communication are not being optimized with Orange County’s current wholesale water structure, which is split between two key, but very different, agencies. This report will, among other things, address the merits related to the formation of “One Voice” in the Orange County wholesale water structure. It will highlight ways in which Orange County can better address water supply, operations, and infrastructure. The report will not recommend specifically how a single structure comes to fruition legislatively. METHOD OF STUDY The Grand Jury evaluated the efforts of the existing primary water entities in Orange County— MWDOC and OCWD—to determine what is working well, and the challenges and opportunities currently existing. In its investigation, the OCGJ used the following sources. 2 2009-2009 Grand Jury report titled Paper Water 3 2012-2013 Grand Jury report titled Orange County Water Sustainability: Who Cares? Page 68 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 5 • In-person and virtual interviews. Specifically, interviews of current and former Water District Managers, City and Regional Water Managers and other involved State entities and individuals. • Water District website meeting minutes and document review. • Independent research (articles, websites, reports, minutes, documents, etc.). • Research of applicable State and local water-related statutes and ordinances. • Site tours of water and sanitation districts’ operations. • Past Grand Jury reports. • 2021 Orange County Water Summit. The interviews included personnel from water agencies that represented a cross section of regional and local wholesalers and retailers to obtain a diversity of perspectives based on geography, demographics, and practices. The investigation took into consideration the variety of characteristics that exist in the County, including: • North compared to South County sources of water supply (reliance on imported water). • Variety of projects to provide water supplies during normal and emergency times. • Diversity of projects and plans to increase reliable sources of water supply including. categories related to conservation, recycling for irrigation and potable use, storage, desalination options, etc. • Multi-agency collaboration. INVESTIGATION AND ANALYSIS Overall, California water sources come from imported supplies (State Water Project in Northern California and the Colorado River), groundwater, stormwater, water transfers, desalination, and water recycling. Orange County, like the rest of California, relies on a variety of sources, with the exception of desalination which is currently in the planning stage. Status Quo To best understand the background of wholesale water in California, and specifically Orange County, one must examine the three major governmental agencies involved: Metropolitan Water District of Southern California (MET), Municipal Water District of Orange County (MWDOC), and Orange County Water District (OCWD). These agencies have similar names but very different responsibilities. The role of retail water districts will also be explained. Metropolitan Water District of Southern California MET provides water from the Colorado River and the State Water Project from Northern California to Southern California. It wholesales this imported water to its Orange County member agencies, MWDOC and the independent cities of Anaheim, Fullerton, and Santa Ana. Page 69 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 6 MET provides most of the water imported into Orange County. MET currently delivers an average of 1.7 billion gallons of water per day to a 5,200 square mile service area. MET is a group of 26 cities and water districts providing drinking water to over 19 million people in Los Angeles, Orange, San Diego, Riverside, San Bernardino, and Ventura counties. Municipal Water District of Orange County MWDOC acts as a pass-through agency for MET’s imported water. This imported water is sold to MWDOC’s 27 member agencies which, except for Fullerton, Anaheim and Santa Ana, covers the entire County. MWDOC also sell untreated water to OCWD for ground water discharge. MWDOC does not own or operate any water infrastructure. Page 70 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 7 Orange County Water District OCWD manages the groundwater basin in the north and central part of the County. OCWD does not directly provide water to any residents or businesses, except treated wastewater for irrigation in the Green Acres Project. The Green Acres Project is a water reuse effort that provides recycled water for landscape irrigation at parks, schools and golf courses and some industrial Page 71 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 8 uses.3F 4 OCWD’s primary role is to manage the basin and provide local water retailers with a reliable, adequate, and high-quality supply of water.4F 5 In addition, OCWD operates the Groundwater Replenishment System (GWRS) in partnership with the Orange County Sanitation District (OCSAN). This state-of-the-art water purification project can produce over 100 million gallons of high-quality potable water per day for aquifer recharge. OCWD provides groundwater to 19 municipal and special water districts and supplies approximately 77 percent of the water supply for North and Central Orange County. OCWD is the only wholesale groundwater agency for Orange County and is a customer of MWDOC for imported needs to supplement the aquifer recharge serving North/Central County. OCWD currently has $1.5 billion in capital infrastructure assets. 4 www.ocwd.com/about/ 5 Ibid. Page 72 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 9 Additional Supply for OCWD The Santa Ana River is the largest coastal stream in Southern California. Flowing west from the San Bernardino Mountains, the river winds through San Bernardino and Riverside Counties before reaching Orange County at Prado Dam, then traveling through the OCWD aquifer to supplement recharge, before terminating at the Pacific Ocean. The river is joined by Santiago Creek and flows to the ocean between Huntington Beach and Newport Beach.5F 6 Retail Water Districts Retail water organizations are the direct connection of supplying water to residential and commercial consumers. There are 29 retail water providers throughout Orange County. These water providers include cities, special water districts/agencies and one private water company. 6 www.ocwd.com/what-we-do/ Page 73 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 10 Differences in Supply Sources South Orange County’s approximate 600,000 residents rely primarily on imported water (70-100 percent of needed supply depending on location) from hundreds of miles away. The imported water is purchased through the Municipal Water District of Orange County (MWDOC).6F 7 North and Central County’s roughly 2.8 million residents rely primarily (19-99 percent depending on location) on groundwater supplied OCWD, which refills the Orange County Groundwater Basin with many different water supplies: water from the Santa Ana River; local rainfall; treated and purified wastewater through the Groundwater Replenishment System (GWRS); and imported water from the Colorado River and Northern California.7F 8 7 www.ocwd.com/about & www.mwdoc.com/wp-content/uploads/2017/05/Water-Supply.pdf 8 www.mwdoc.com/wp-content/uploads/2017/05/Water-Supply.pdf Page 74 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 11 History, Governance and Authorizing Legislation MET In 1928, the Metropolitan Water District Act was established by the California Legislature. The original purpose was to construct and operate the 242-mile Colorado River Aqueduct, which runs from an intake at Lake Havasu on the California-Arizona border to an endpoint at Lake Mathews reservoir in Riverside County. MET has a 38-member board of directors representing the district’s 26 agencies. Orange County is represented on the MET Board by seven Board members. MET has imported water from the Colorado River since 1941 and from Northern California since the early 1970s.8F 9 MWDOC MWDOC is a wholesale water supplier and resource planning agency that was established in 1951. Governed by a seven-member Board of Directors,9F 10 MWDOC is MET’s third largest member agency and appoints four representatives to advocate the interests of Orange County on the Metropolitan Water District Board.10F 11 OCWD The Orange County Water District was formed in 1933 by a special act of the California Legislature to protect Orange County’s rights to water in the Santa Ana River. OCWD is governed by a 10-member Board of Directors, seven of whom are elected, and three are appointed by the city councils of Anaheim, Fullerton, and Santa Ana.11F 12 Retail Water Districts Each retail water district was established throughout Orange County’s history and provides water directly to consumers. They are each governed by an elected board of directors, respective city councils, or private investors. Local Agency Formation Commission (LAFCO) As part of California’s water governance, LAFCO oversees geographic boundaries, evaluates cost-effective and efficient public service delivery, and explores potential alternatives to meet the service demands of the existing and future County population. Orange County LAFCO was founded in 1963 and strives to ensure the delivery of effective and efficient public services, including water, by local governments to the County’s residents.12F 13 Orange County water 9 www.mwdoc.com/about-mwdoc; www.mwdh2o.com/who-we-are/our-story/ 10 www.mwdoc/about-us/about-mwdoc 11 www.mwdoc.com com/wp-content/uploads/2017/06/So-Cal-Water-Wholesale-Retailers.pdf 12 www.ocwd.com/about/ 13 www.oclafco.org/about-us/agency/ Page 75 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 12 professionals believe the process of creating one wholesale water agency would first go through LAFCO formation before moving on to State legislation and approval. Services Provided by Wholesalers & Retailers The following water services are currently in operation for Orange County. MET • Delivering wholesale water supplies from the Colorado River and State Water Project. • Managing water resources including water storage programs (groundwater banking and reservoir), transfers and exchanges, groundwater recovery, recycling, stormwater capture, and potential seawater desalination. • Operating water system including treatment, quality monitoring, conveyance, distribution, and support. • Engineering, safety, and regulatory services such as infrastructure protection, maintenance, and improvement programs. • Managing energy operations. • Planning for emergency water supply interruption due to earthquake, fire, power failure, public health, and other unexpected crises. • Planning for capital investment. MWDOC • Purchases wholesale water from MET, approximately 70.2 billion gallons of water annually, and delivers to its 27 member agencies. • Provides studies, analysis and programs related to water supply development, including desalination, and system reliability and use efficiency. • Offers planning assistance and local resource development in areas of water recycling, groundwater recharge, and conservation. • Offers residential and commercial rebate programs. • Offers leak detection services to its members. • Develops and administrates disaster preparedness, response, and recovery strategies through the Water Emergency Response Organization of Orange County (WEROC). This organization involves both water and wastewater agencies. • Provides public education and community outreach. OCWD • Manages Orange County’s wholesale groundwater supplies: the basin consisting of a large underground aquifer to ensure a reliable supply, the Santa Ana River watershed, and the Groundwater Replenishment System (GWRS). Page 76 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 13 • Replaces groundwater that is pumped out of the basin every year with Santa Ana River watershed, recycled, imported, storm and natural incidental water recharge. • Ensures groundwater supply safety and quality through monitoring and testing. • Recycles water primarily through the GWRS which takes treated wastewater that otherwise would be sent to the Pacific Ocean and purifies it for aquifer recharge. • Participates in legislative and community engagement and education. • Develops additional innovative programs such as Forecast Informed Reservoir Operations (FIRO) at Prado Dam, capturing and recharging stormwater in the Santa Ana River, and anticipating and optimizing stormwater runoff. • Coordinates contaminant treatment, financial resource needs, and policy such as for Per- and polyfluoroalkyl substances (PFAS) which enter the aquifer and wells primarily through the Santa Ana River flows. Additionally, organizes litigation and accountability for the contaminant sources. Retail Water Districts In addition to being the direct link to consumers, retail agencies provide several additional services beyond those provided by wholesalers. Those services include maintaining water quality and testing throughout their distribution systems, repair and replacement of critical infrastructure, regulatory compliance, customer service, water use conservation, recycled water for irrigation or other non-potable uses, and public outreach and health-related services. Where Do We Go from Here? Assessment of Current State Reliable sources shared opinions with the OCGJ that the current OC wholesale structure is “dysfunctional”, “prevents speaking with one voice for all of Orange County water interests” involving the aquifer and imported water sources, and “currently provides redundant services with redundant costs.” Also, multiple member agencies of MWDOC have expressed dissatisfaction with MWDOC’s operating effectiveness related to MET board and legislative representation, member charges for provided services, and the scope of emergency preparedness.13F 14 In addition, this dual structure of MWDOC and OCWD has resulted in missed opportunities for the County in the form of more extensive multiple agency collaboration, increased operating efficiency, decreased reliance on imported water, and the creation of a more reliable water 14 Information based on multiple interviews, past agreements between MWDOC and MWDOC member agencies, and LAFCO Municipal Service Reviews. Page 77 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 14 supply.14F 15 Currently, many projects are undertaken by individual or small groups of retail agencies that could be more expansive if guided by a single wholesale water supplier providing diverse water sources. Another missed opportunity is a lack of coordinated County analysis about the benefits and drawbacks related to potential desalination projects. Even though desalination projects potentially impact the water supply for all of Orange County, OCWD and MWDOC independently consider these desalination projects and their impact. Furthermore, many water experts believe that this fragmentation results in less than optimum legislative lobbying effectiveness. This affects programs such as water conservation, related water consumption standards such as State storage projects to capture more water supply during wet years, contamination treatment standards, and the Delta Conveyance System, which is a proposed more efficient and effective system to move water from Northern California to the central and southern part of the State. Benefits of a Single County Agency - “One Voice” The Orange County Grand Jury found that creation of a single County wholesale water agency to serve as a conduit for both imported and groundwater would be most effective in coordinating water supply diversification, major infrastructure investments, and developing forward-thinking policies and practices. This single agency would also help facilitate fiscal and environmental responsibility. Orange County water agencies have earned a tremendous reputation for innovative projects and strategies related to increasing a reliable water supply, even in drought conditions. How do we leverage what already is exemplary and collaborative in Orange Counter water operations? • Groundwater Replenishment System (GWRS) • Santa Ana River Conservation and Conjunctive Use program (SARCCUP)15F 16 • Inter-county perspective with neighboring jurisdictions of the Inland Empire, San Diego, and Los Angeles Counties. • Purple water recycling for irrigation coming from treated waste and stormwater capture. • Burris Basin conversion to Anaheim Coves Trail (OCWD / City partnership).16F 17 Water experts believe “One Voice” would result in increased influence on the MET Board. The OCJG concluded that having all types (groundwater and imported water) of wholesale water 15 Information based on multiple water professional interviews. 16 www.ieua.org/read-our-reports/santa-ana-river-conservation-and-conjunctive-use-program/ 17 http://www.santa-ana-river-trail.com/trail/burris_basin.asp Page 78 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 15 providers occupy “seats at the table” would be beneficial to Orange County as a whole and for MET. Additional benefits of a one wholesale water entity include: • Increased coordination of financial support and capital resources from local, State, and federal sources. An example is in the funding for well contamination remediation utilizing an ionization process. • More influence at the local, State, and federal levels. Examples include the Delta Conveyance17F 18 system, additional storage capacity, and preservation of imported supplies from the State Water Project. • Increased collaboration leading to additional infrastructure shared by wholesale and retail, both for emergency and longer-term everyday use, to move water around as needed. • Centralized planning for emergency water supply interruptions rather than independent efforts of wholesale and retail water organizations. • Increased coordination between North and South County for matters such as water banking in Central County for use in South County. • Cost savings by eliminating duplication of administrative, professional, consultant, lobbying and other expenses currently existing at OCWD and MWDOC. • Singular County leadership in forming conservation strategies, public outreach, and education. Concerns related to creating “One Voice” The Orange County Grand Jury recognizes that with any governance or business model change obstacles will exist to forming a consolidated or new wholesale water agency. Overall, proponents of this change are concerned that there is a lack of political will and that “protecting my own turf” philosophies will get in the way of doing the right thing for reliable water supply in the future. Some additional hesitation exists from some Orange County water board and management professionals that believe: • Imported versus groundwater requires specialized knowledge and a unique operational approach and should not be combined. • Staff reductions will occur. • Merging of retirement pension and benefit liabilities will be complicated and expensive. • Development of a new Board of Directors structure may cause a loss of representation of the unique water needs of different parts of the County. 18 www.mwdoc.com/wp-content/uploads/2020/06/Delta-Conveyance-Project-and-EcoRestore.pdf Page 79 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 16 • Consolidation of the existing two wholesale water districts, OCWD and MWDOC, or the forming of a new agency would be complicated. The process would likely begin through Orange County LAFCO before moving to State legislative level, both of which would be divisive and risk political influence and interference when revising local and State water acts. Despite these complications and challenges, the OCGJ concluded that the County will be better served by creating a “one voice” agency to lead and represent all aspects of wholesale water operations in Orange County. FINDINGS F1 A singular water authority for Orange County’s wholesale water supply likely would result in further opportunities at the local, State, and federal levels in legislation, policy making and receiving subsidies and grants. F2 The current fragmented water system structure and operations provides challenges as it relates to development of new interconnected infrastructure as well as maintenance of existing systems. F3 There is a great disparity between the North/Central and South Orange County water sources, management, and operations carried out by OCWD and MWDOC. F4 South Orange County has many smaller retail water districts that lack a formal centralized leadership. Notwithstanding this lack of structure, South Orange County retail water districts have displayed effective collaboration when dealing with one another. F5 Orange County Water District is a recognized worldwide leader in groundwater resource management and reclamation. Its leadership, innovation, and expertise can be further utilized to serve all of Orange County in developing additional innovative and beneficial programs. F6 Orange County currently does not have a countywide coordinated policy regarding water conservation, which results in difficulty when complying with any new State-mandated conservation regulations. RECOMMENDATIONS R1 By January 2023, Orange County wholesale water agencies should formally begin analysis and collaboration towards forming a single wholesale water authority or comparable agency to operate and represent wholesale water operations and interests of all imported and ground water supplies. (F1, F2, F3, F4, F6) Page 80 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 17 R2 Any future “One Voice” consolidated Orange County wholesale water authority should have Directors that examine and vote on issues considering the unique needs of all water districts. (F1, F2, F3, F4, F6) COMMENDATIONS • Orange County Water District (OCWD) commitment to sound planning and state-of-the- art technology to provide water to the people of Orange County. Highly recognized, OCWD, along with Orange County Sanitation District, has the world’s largest Groundwater Replenishment System (GWRS). • Municipal Water District of Orange County (MWDOC) for many provided services related to emergency planning, public education, water reliability and delivery reports, leak detection service, rebate and conservation programs and many other “choice” services. • All the current wholesale and retail water districts in Orange County for their efforts to collaborate and strategize to better serve Orange County Citizens despite the lack of a centralized administration. RESPONSES The following excerpts from the California Penal Code provide the requirements for public agencies to respond to the Findings and Recommendations of this Grand Jury report: California Penal Code Section 933 requires the governing body of any public agency which the Grand Jury has reviewed, and about which it has issued a final report, to comment to the Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters under the control of the governing body. Such comment shall be made no later than 90 days after the Grand Jury publishes its report (filed with the Clerk of the Court). Additionally, in the case of a report containing findings and recommendations pertaining to a department or agency headed by an elected County official (e.g. District Attorney, Sheriff, etc.), such elected County official shall comment on the findings and recommendations pertaining to the matters under that elected official’s control within 60 days to the Presiding Judge with an information copy sent to the Board of Supervisors. Furthermore, California Penal Code Section 933.05 specifies the manner in which such comment(s) are to be made as follows: (a) As to each Grand Jury finding, the responding person or entity shall indicate one of the following: (1) The respondent agrees with the finding. Page 81 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 18 (2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor. (b) As to each Grand Jury recommendation, the responding person or entity shall report one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has not yet been implemented, but will be implemented in the future, with a time frame for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a time frame for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This time frame shall not exceed six months from the date of publication of the Grand Jury report. (4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefor. (c) If a finding or recommendation of the Grand Jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the Board of Supervisors shall respond if requested by the Grand Jury, but the response of the Board of Supervisors shall address only those budgetary /or personnel matters over which it has some decision making authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department. Responses Required Comments to the Presiding Judge of the Superior Court in compliance with Penal Code §933.05 are required from: 90 Day Response Required F1 F2 F3 F4 F5 F6 OCWD Board of Directors X X X X X 90 Day Response Required R1 R2 OCWD Board of Directors X X Page 82 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 19 90 Day Response Required F1 F2 F3 F4 F5 F6 MWDOC Board of Directors X X X X X X 90 Day Response Required R1 R2 MWDOC Board of Directors X X Responses Requested 90 Day Response Requested F1 F2 F3 F4 F5 F6 East Orange County Water District X X X X X 90 Day Response Requested R1 R2 East Orange County Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 El Toro Water District X X X X X 90 Day Response Requested R1 R2 El Toro Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Emerald Bay Service District X X X X X 90 Day Response Requested R1 R2 Emerald Bay Service District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Golden State Water Co X X X X X 90 Day Response Requested R1 R2 Golden State Water Co X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Irvine Ranch Water District X X X X X X 90 Day Response Requested R1 R2 Irvine Ranch Water District X X Page 83 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 20 90 Day Response Requested F1 F2 F3 F4 F5 F6 Laguna Beach County Water District X X X X X X 90 Day Response Requested R1 R2 Laguna Beach County Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Mesa Water District X X X X X 90 Day Response Requested R1 R2 Mesa Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Moulton Niguel Water District X X X X X X 90 Day Response Requested R1 R2 Moulton Niguel Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Santa Margarita Water District X X X X X X 90 Day Response Requested R1 R2 Santa Margarita Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Serrano Water District X X X X X X 90 Day Response Requested R1 R2 Serrano Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 South Coast Water District X X X X X 90 Day Response Requested R1 R2 South Coast Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Trabuco Canyon Water District X X X X X X Page 84 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 21 90 Day Response Requested R1 R2 Trabuco Canyon Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Yorba Linda Water District X X X X X 90 Day Response Requested R1 R2 Yorba Linda Water District X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 City of Anaheim X X X X X 90 Day Response Requested R1 R2 City of Anaheim X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 City of Fullerton X X X X X 90 Day Response Requested R1 R2 City of Fullerton X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 City of Santa Ana X X X X X 90 Day Response Requested R1 R2 City of Santa Ana X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 City of Brea X X X X X 90 Day Response Requested R1 R2 City of Brea X X 90 Day Response Requested F1 F2 F3 F4 F5 F6 Metropolitan Water District X X X 90 Day Response Requested R1 R2 Metropolitan Water District X X Page 85 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 22 GLOSSARY AQUEDUCT A structure for transporting water from one place to another by means of a pipeline, canal, conduit, tunnel, or a combination of these things. AQUIFER A geologic formation of sand, rock and gravel through which water can pass and which can store, transmit and yield significant quantities of water to wells and springs. Refers to State Water Project (SWP) infrastructure in the vast network of waterways comprising the Sacramento-San Joaquin Delta (Delta) that collects and moves fresh, clean, and affordable water to homes, farms, and businesses throughout major regions of the State from the Bay Area to Southern California. FIRO Forecast Informed Reservoir Operations is a flexible water management approach that uses data from watershed monitoring and improved weather forecasting to help water managers selectively retain or release water from reservoirs for increased resilience to droughts and floods. GWRS Groundwater Replenishment System. A process where water is replaced in the aquifer. GREEN ACRES PROJECT OCWD's Green Acres Project (GAP) is a water reuse effort that provides recycled water for landscape irrigation at parks, schools, and golf courses; industrial uses, such as carpet dying; toilet flushing; and power generation cooling. GROUNDWATER BANKING A process of diverting surface water into an aquifer where it can be stored until needed JPA Joint Power Authority. two or more public agencies to join together, under a joint powers authority (JPA), to provide more effective or efficient government services or to solve a service delivery problem. Page 86 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 23 LAFCO Local Agency Formation Commission. Governed by State law, the Commission oversees proposed changes to local agency and county unincorporated boundaries and prepares special studies to encourage the orderly and efficient delivery of public services to Orange County residential and business communities. MET Metropolitan Water District, provides water from the Colorado River and the State Water Project from northern California to Southern California. MWDOC Municipal Water District of Orange County represents all of Orange County, excluding the three independent city members of MET, and acts as a pass-through agency for MET water sold to its constituent members and sells additional untreated water to OCWD for groundwater recharge. OCSAN Orange County Sanitation District treats and recycles sewer and grey water. OCWD Orange County Water District manages the groundwater basin of the north and central part of the County. ONE VOICE Orange County needs to have a central entity to speak for water and legislative matters. PAPER WATER Transfer water via paper, not physically. PFAS Per and polyfluoroalkyl substances chemical by product of past aerospace manufacturing in Orange County. PURPLE WATER Recycled water that has been treated for reuse in landscaping, agriculture, and commerce. SAR Santa Ana River. SARCCUP Santa Ana River Conservation and Conjunctive Use program. Guides the use and conservation of the Santa Ana River basin. SPECIAL DISTRICTS Special districts are public agencies created to provide one or more specific services to a community, such as water service, sewer service, and parks. Page 87 of 97 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 24 WATER TRANSFERS A water transfer is a voluntary sale of water proposed and initiated by willing sellers who have legal rights to a supply of water to an interested buyer. WEROC Water Emergency Response Organization of Orange County, administered through MWDOC, develops disaster preparedness, response, and recovery strategies. Page 88 of 97 PO Box 309, Yorba Linda CA 92885 714-701-3000 www.ylwd.com J. Wayne Miller, PhD President Brooke Jones Vice President Trudi Kew DesRoches Director Phillip D. Hawkins Director Tom Lindsey Director SERVING THE COMMUNITY SINCE 1909 August 8, 2022 Honorable Erick L. Larsh Presiding Judge Superior Court of California, County of Orange 700 Civic Center Drive West Santa Ana, CA 92701 Re: Response to Grand Jury Report from Yorba Linda Water District “Water in Orange County Needs ‘One Voice’” – OC Grand Jury 2021-2022 Dear Judge Larch: The Yorba Linda Water District (YLWD) is pleased to present the following response to the above-referenced Grand Jury Report as requested by the 2021- 2022 Orange County Grand Jury: Findings of the Grand Jury: F1 A singular water authority for Orange County’s wholesale water supply likely would result in further opportunities at the local, State, and federal levels in legislation, policy making and receiving subsidies and grants. YLWD Response to F1: YLWD neither agrees nor disagrees with this Finding. YLWD has no basis for evaluating this Finding and has no information or opinion as to whether local, state, or federal agencies would respond better to or be more likely to provide subsidies or grants to a larger agency. F2 The current fragmented water system structure and operations provides challenges as it relates to development of new interconnected infrastructure as well as maintenance of existing systems. YLWD Response to F2: YLWD neither agrees nor disagrees with this Finding as it demonstrates a lack of understanding as to the roles of the respective entities. MWDOC has no physical water transmission infrastructure. OCWD maintains any interconnections it needs directly with MET and OCWD maintains its facilities without issue to a very high standard. F3 There is a great disparity between the North/Central and South Orange County water sources, management, and operations carried out by OCWD and MWDOC. Page 89 of 97 Hon. E. Larsh August 9, 2022 Page 2 of 3 YLWD Response to F3: YLWD agrees with this Finding at face value. North/Central Orange County has long-established rights to the Orange County groundwater basin that South Orange County does not have. Combining these agencies will not change that. A combined agency would still have to maintain separate and distinct functions such that the rights to groundwater of the agencies holding such rights are not abridged or compromised in any fashion. A combined agency would almost certainly gain significant economies and efficiencies as to management of the imported MET water supply. F4 South Orange County has many smaller retail water districts that lack a formal centralized leadership. Notwithstanding this lack of structure, South Orange County retail water districts have displayed effective collaboration when dealing with one another. YLWD Response to F4: YLWD neither agrees nor disagrees with this Finding and has no basis for comment. F5 Orange County Water District is a recognized worldwide leader in groundwater resource management and reclamation. Its leadership, innovation, and expertise can be further utilized to serve all of Orange County in developing additional innovative and beneficial programs. YLWD Response to F5: YLWD agrees with this Finding keeping in mind the distinction between those agencies having rights to groundwater and those that do not. F6 Orange County currently does not have a countywide coordinated policy regarding water conservation, which results in difficulty when complying with any new State-mandated conservation regulations. YLWD Response to F6: YLWD agrees with the first part of this Finding and disagrees with the second part. Despite not having a “countywide coordinated policy regarding water conservation,” YLWD is not aware of this resulting in any difficulty complying with new State-mandated conservation regulations. In fact, the State thus far, has left it to the local agencies to determine how best to comply with State policies. YLWD respectfully suggests that this is the essence of local control – allowing each local community to do what works best without the overreach of a larger regional bureaucracy. Page 90 of 97 Hon. E. Larsh August 9, 2022 Page 3 of 3 Recommendations of the Grand Jury: R1 By January 2023, Orange County wholesale water agencies should formally begin analysis and collaboration towards forming a single wholesale water authority or comparable agency to operate and represent wholesale water operations and interests of all imported and ground water supplies. (F1, F2, F3, F4, F6) YLWD Response to R1: If the two agencies would like to explore a possible merger, YLWD would support that effort. YLWD recognizes that there may be many long-term benefits and economies to be realized through an eventual consolidation of these agencies. R2 Any future “One Voice” consolidated Orange County wholesale water authority should have Directors that examine and vote on issues considering the unique needs of all water districts. (F1, F2, F3, F4, F6) YLWD Response to R2: YLWD believes that all public agencies should have elected members that examine and vote on issues considering the unique needs of constituents and stakeholders. Thank you for providing YLWD the opportunity to respond and comment. Should you have any questions, please contact us at your convenience. Sincerely, J. Wayne Miller, Ph.D. President, Board of Directors First Initial. Last Name Date Page # Page 91 of 97 ITEM NO. 13.1. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Director's Reports The Directors will report on their attendance at the following events: JULY OC LAFCO - July 13, 2022 YL Planning Commission - July 13, 2022 (Hawkins - As Needed) WACO Planning Committee - July 19, 2022 SAWPA Commission - July 19, 2022 MWDOC Board - July 20, 2022 (Miller/Lindsey) OCWA Webinar - July 20, 2022 (Jones/Hawkins) OCWD Board - July 20, 2022 (Jones/DesRoches) GRA Southern CA - July 26, 2022 (Jones) MWDOC/OCWD Joint Planning Committee - July 27, 2022 (Miller/DesRoches) OC Sanitation - July 27, 2022 (Jones) YL Planning Commission - July 27, 2022 (Hawkins - As Needed) ISDOC - July 28, 2022 AUGUST ISDOC Executive Committee - August 2, 2022 FIRO Webinars - August 2-4, 2022 (Jones) YL City Council - August 2, 2022 (Hawkins) MWDOC Board - August 3, 2022 (Miller/Lindsey) OCWD Board - August 3, 2022 (Jones/DesRoches) WACO - August 5, 2022 Page 92 of 97 ITEM NO. 13.2. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Doug Davert, Interim General Manager SUBJECT: Interim General Manager's Report A brief update on District activities and matters of interest as of August 1, 2022. 1. Metropolitan has advised us that they need to do an emergency repair on their upper feeder where it crosses the Santa Ana River in Riverside County. The shutdown will last 14 days (September 6 through 20, 2022). While this does not directly affect our supplies, we are working closely with OCWD, MWDOC, and Metropolitan to ensure reliability during the shutdown which is scheduled during our high-demand period. 2. On Tuesday, August 2, 2022, we had our credit surveillance with Fitch Ratings. This is separate from the recent rating by S&P that was used in our bond transaction. We are hopeful that we will maintain our AA+ rating and will keep you posted on the result. 3. On Friday, August 12, 2022, we will be hosting Congresswoman Young Kim and her staff for a brief tour of the PFAS plant, the helicopter hydrants, and the Green Crest Lift Station. Rep. Kim (along with Senator Padilla) obtained $500,000 in federal funding for our third helicopter hydrant. She and Senator Padilla are now pursuing funding for the Green Crest Lift Station Rehabilitation Project as well as the Imperial Highway Waterline Replacement Project. Rep. Kim is bringing several members of her DC staff so that they can understand these projects. We look forward to hosting them. 4. Staff participated in the Taste of Yorba Linda event on July 29, 2022. The YLWD team did an outstanding job and was well-received by hundreds of thirsty participants. We will be participating in the Taste of Placentia event on August 11, 2022. 5. Engineering staff is working on layout and design of the next helicopter hydrant. There are several logistical prerequisites that will need to be resolved before we are able to commit to timing and location. Staff will update the Board when more information is available. 6. Staff is planning a community open house at our headquarters facility in October. We will provide more details as they become available. 7. Attached is the monthly activity report from CommunicationsLAB. 8. Kudos are again in order for our Finance Department. Under Delia Lugo's guidance and leadership, the Government Finance Officers Association of the United States and Canada Page 93 of 97 (GFOA) has awarded the Certificate of Achievement for Excellence in Financial Reporting to Yorba Linda Water District for its annual comprehensive financial report for the fiscal year ended June 30, 2021. The report has been judged by an impartial panel to meet the high standards of the program, which includes demonstrating a constructive "spirit of full disclosure" to clearly communicate its financial story and motivate potential users and user groups to read the report. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. Staff is available to answer any questions you may have regarding the foregoing. ATTACHMENTS: 1. CommLAB Activity Report for July Page 94 of 97 July Activity Report TO: Alison Martin, Public Affairs Manager, PIO, Yorba Linda Water District FROM: Diego Terán, Sr. Account Manager, Communications LAB DATE: July 28, 2022 RE: Current communication’s projects Below are highlights of current Communications Lab projects for Yorba Linda Water District: • Social Media a) Agency submitted copy and received approval for July-mid-Sep. media calendar. Next step: Agency to analyze exposure. b) Agency submitted KPI report with analysis of social media platforms Facebook, Instagram, LinkedIn and Twitter. This report includes activity from Apr. 22-June 22. Next step: Agency to analyze data and start preparing next report. • Graphic Design a) Client notified agency that its accounting team has put the Annual Budget Document on hold. The agency will be ready for further notification to continue with project layout. b) Agency created new social media banners for Facebook, LinkedIn, Twitter and YouTube, which include the client’s new logo. c) Agency completed a letterhead refresh as a Word document with the client’s new logo and an image of the new PFAS plant. d) Agency submitted new layout for client’s business cards template as Illustrator files. The layout is modular, allowing accommodation of multiple phone numbers, or other multiple data that requires customization. Client provided photos to choose from for the background, which included the new PFAS plant. e) On July 27, the agency provided print-ready files of the semiannual water news outline, which included two rounds of edits requested by client. Along with the print-ready pdf, the agency provided a hyperlink-active pdf. The layout redesign features an image of new PFAS plant provided by client. f) Agency forwarded pictures of board members and other dignitaries present at the PFAS plant dedication. Page 95 of 97 ITEM NO. 15.1. AGENDA REPORT MEETING DATE: August 9, 2022 TO: Board of Directors FROM: Doug Davert, Interim General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Meetings from August 10 - September 30, 2022 ATTACHMENTS: 1. Board of Directors' Activity Calendar Page 96 of 97 Board of Directors Activity Calendar Event Date Time Attendance By August OC LAFCO Wed, Aug 10 8:15 AM YL Planning Commission Wed, Aug 10 6:30 PM Hawkins (As Needed) WACO Planning Committee Tue, Aug 16 7:30 AM SAWPA Commission Tue, Aug 16 9:30 AM YL City Council Tue, Aug 16 6:30 PM Lindsey MWDOC Board Wed, Aug 17 8:30 AM Miller/Lindsey OCWA Webinar Wed, Aug 17 11:30 AM OCWD Board Wed, Aug 17 5:30 PM Jones/DesRoches Board of Directors Regular Meeting Tue, Aug 23 5:30 PM UWI Conference Wed, Aug 24 1:00 PM Jones OC Sanitation Wed, Aug 24 6:00 PM Jones YL Planning Commission Wed, Aug 24 6:30 PM Hawkins (As Needed) UWI Conference Thu, Aug 25 8:00 AM Jones UWI Conference Fri, Aug 26 8:00 AM Jones July District Offices Closed Mon, Sep 5 7:00 AM ISDOC Executive Committee Tue, Sep 6 7:30 AM SAWPA Commission Tue, Sep 6 9:30 AM YL City Council Tue, Sep 6 6:30 PM DesRoches MWDOC Board Wed, Sep 7 8:30 AM Miller/Lindsey OCWD Board Wed, Sep 7 5:30 PM Jones/DesRoches WACO Fri, Sep 9 7:30 AM Board of Directors Regular Meeting Tue, Sep 13 6:30 PM OC LAFCO Wed, Sep 14 8:15 AM YL Planning Commission Wed, Sep 14 6:30 PM Hawkins (As Needed) OC Water Summit Fri, Sep 16 7:30 AM Jones WACO Planning Committee Tue, Sep 20 7:30 AM SAWPA Commission Tue, Sep 20 9:30 AM YL City Council Tue, Sep 20 6:30 PM Miller MWDOC Board Wed, Sep 21 8:30 AM Miller/Lindsey OCWA Webinar Wed, Sep 21 11:30 AM OCWD Board Wed, Sep 21 5:30 PM Jones/DesRoches Board of Directors Regular Meeting Tue, Sep 27 6:30 PM OC Sanitation Wed, Sep 28 6:00 PM Jones YL Planning Commission Wed, Sep 28 6:30 PM Hawkins (As Needed) As of August 2, 2022 Page 97 of 97 BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING Page 1 M E M O R A N D U M To: Yorba Linda Water District From: Townsend Public Affairs Date: August 3, 2022 Subject: State and Federal Legislative Monthly Report State Legislative Update The month of July was quiet in Sacramento with legislators away on Summer Recess. Despite the lack of legislative activity, the month was a critical time for behind-the-scenes negotiations on bills and final budget activity as the Legislature gears up to tackle the last month of the legislative session. The legislative session will conclude on August 31, where legislators will return home for Interim Recess until they start again in January 2023. Below is an overview of state activity from the month of July. State Legislature The return from Summer Recess on August 1 will feature Appropriations Committee hearings for both houses – both with immense bill agendas to consider. Following the first week of Appropriations Committee hearings, lawmakers will also need to pass any financially significant bills through their respective suspense files before they can move to the floor for final votes. Governor Newsom will then have until September 30 to sign or veto any bills that make it out of the Legislature and to his desk. Priority bills that are slated for consideration upon the Legislature’s return from recess include the following: • Indoor Residential Water Use: SB 1157 (Hertzberg) would lower the indoor residential water use target to 42 gallons per capita per day starting in 2030. Recently adopted amendments require the Department of Water Resources (DWR) to conduct an additional study to determine the impact of the 2030 standard as well as addressing its affordability. Additionally, the bill expands the list of available variances that can be granted by the State Water Resources Control Board and DWR. SB 1157 is expected to be sent to the Assembly Appropriations Committee’s Suspense File and will be heard on or before August 11. Several associations and water and sanitation agencies remain in an oppose unless amended stance on the bill, while some have moved to neutral with the new amendments. • Land Use: AB 2011 (Wicks) and SB 6 (Caballero) allow for the ministerial or by-right approval of residential development on certain commercial and industrial sites so long as developers adhere to specified labor standards for workers. These bills will be considered by their respective second-house appropriations committees in the first week of August. SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022 Page 2 • ADU Reform: SB 897 (Wieckowski) and AB 916 (Salas) both seek to reform laws governing accessory dwelling units (ADUs) through requirements to increase the allowable height for units and prohibiting local hearings for the construction of additional rooms and parking requirements, among other things. Both bills will be considered by their respective second- house appropriations committees in the first week of August. • Local Transportation Planning: SB 932 (Portantino) requires local governments to adopt significant bicycle, pedestrian, and traffic calming elements in their general plans and creates a private right of action against local governments that fail to implement plans resulting in injury. This bill will be considered by its second house Appropriations Committee at the beginning of August. • Labor and Employment: SB 931 (Leyva) allows an employee organization to file a claim with the California Public Employment Relations Board alleging a violation of a section of the Government Code that governs employer actions and union membership. SB 1127 (Atkins) changes longstanding rules and timeframes for determining the eligibility of workers’ compensation claims and could result in new penalties on employers. Both bills will be considered by their respective second-house appropriations committees in the first week of August. • Mental Health: SB 1338 (Umberg) implements the Governor’s priority CARE Court program, which provides treatment for individuals experiencing mental health crises anywhere from 12- 24 months. Collectively, SB 929, SB 970, SB 1154, and SB 1238 authored by Senator Eggman increase data collection to help behavioral health agencies better understand the outcomes of involuntary holds, their services, and waiting periods, along with current and projected behavioral health care infrastructure. These bills will be considered by their respective second-house appropriations committees in the first week of August. • Public Safety: SB 1000 (Becker) requires law enforcement agencies to allow public access to their radio communications. This bill is also slated for consideration by the Assembly Appropriations Committee. Delta Conveyance Project In July, the Department of Water Resources (DWR) released a draft Environmental Impact Report (EIR) for the Delta Conveyance Project, the major water infrastructure project designed to modernize the transportation of water from Northern California through the Sacramento San- Joaquin Bay Delta to Central and Southern California. This marks a major step in the tumultuous and controversial project, which was famously reduced from a two-tunnel design under Governor Brown to a more cost effective one-tunnel design. Cost estimates are not final but are expected to reach more than $16 billion that will be funded heavily through the State Water Contractors who deliver water from the State Water Project. Currently, the Draft EIR is available for public comment for 90-days, ending on October 27, 2022. This is the first step forward for the Delta Conveyance Project for some time, which is expected to be delayed continuously going forward through CEQA protests and lawsuits. SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022 Page 3 CalPERS Reports $29 billion Loss, Proposes a New Rulemaking Action The California Public Employees’ Retirement System reported a loss of more than 6 percent last fiscal year – its first negative investment return since the Great Recession. At the close of the 2021-22 fiscal year, which ended June 30, the fund stood at $440 billion, a loss of nearly $30 billion from the previous year, when CalPERS reported a positive 21.3 percent return to bring the fund’s total to $469 billion. As a result of the overall loss, the fund ended the fiscal year with 72 percent of the money it needs to meet all its financial obligations. The system was reportedly 82% funded at the start of the 2020-21 fiscal year. CalPERS executives attribute the impact on returns to volatile global financial markets, geopolitical instability, domestic interest rate hikes, and inflation. Ultimately, after an auditing process, CalPERS’ 2021-22 final fiscal year investment performance will be reflected in contribution levels for State of California and school districts in fiscal year 2023-24, and for contracting cities, counties, and special districts in fiscal year 2024- 25. Additionally, this month CalPERS also issued a proposed rulemaking action which seeks to define “limited duration” employment and provide clarity and uniformity for CalPERS-covered employers. Specifically, the proposed regulations seek to define the term “limited duration” for “extra help” positions. Extra help positions are a type of “retired annuitant” appointment that allows CalPERS retirees to perform part-time, specialized work at public agencies without losing their pensions. The proposed rulemaking action limits an appointment of a retired annuitant to an initial period of two years, which could be extended by an additional year up to two times, for a total of four years, if certain requirements are met. For current retired annuitants, the two years would be counted from when the regulations go into effect. Numerous local government agencies have voiced concerns over the proposed action and have highlighted the need for greater flexibility during a tumultuous period of staffing issues due to the pandemic. Federal Legislative Update July was an extremely active month in Washington, DC as Congress worked to push through several key legislative items before the August recess. Progress was made on numerous policy fronts, including budget reconciliation, FY23 appropriations, semi-conductor legislation, and environmental resilience. Additionally, the House moved forward to codify same-sex marriage and access to contraception, as well as pass as a ban on assault weapons. Below is an overview of federal legislative updates from the month of July. Update on Budget Reconciliation In what could prove to be a major breakthrough after weeks of negotiations, on July 28, Senate Majority Leader Chuck Schumer and Senator Joe Manchin released the outline of a tax, climate, and health care deal. The proposal would raise an estimated $739 billion, with the revenues going to fund climate and health initiatives, along with reducing the budget deficit. The bill includes several provisions relating to water resources: • $837.5 million for the Department of Housing and Urban Development to issue loans and grants, potentially leveraging up to $4 billion for the purpose of improving energy or water efficiency in low-income housing. SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022 Page 4 • $1.893 billion for a new Neighborhood Access and Equity Grant Program. Among many eligible projects, this grant program would fund the construction of infrastructure or protective features to reduce or manage stormwater run-off. • $550 million for the U.S. Bureau of Reclamation to provide domestic water supplies to disadvantaged communities that do not have access to reliable water supplies. • $25 million for Reclamation to install solar panels over canals with the intent to generate renewable energy and curb evaporation. • $200 million for vegetation management projects in National Forests carried out in accordance with a water source management plan or a watershed protection and restoration action plan. The bill has been named the Inflation Reduction Act in a nod to the negative impacts inflation has had on the federal tax and spending agenda. The legislation still has major hurdles to clear, which include numerous moderate Democrats expressing a desire to change the state and local tax deduction cap provisions. If these issues are resolved, a vote in the Senate could come during the first week of August and the bill would make its way to the President’s desk by mid-August. Update on House FY23 Appropriations On July 20, the U.S. House of Representatives passed H.R.8294, a legislative package that includes six of the twelve Fiscal Year 2023 appropriations bills. The package includes spending bills for Agriculture-FDA, Energy and Water, Financial Services-General Government, Interior- Environment, and Military Construction-Veterans Affairs. A spending breakdown for each of the six bills is below: • Transportation-HUD: $168.5 billion • Agriculture-FDA: $27.2 billion • Energy and Water: $56.3 billion • Financial Services-General Government: $29.8 billion • Interior-Environment: $44.8 billion • Military Construction-Veterans Affairs: $150.5 billion House Democrats did not have the necessary votes to pass the remaining six appropriations bills before leaving for the August recess due to a lack of consensus on spending programs between both parties. In the absence of an agreement, Appropriations Committees have begun drafting a stopgap government funding bill to avoid a shutdown at the end of the fiscal year on September 30. It is anticipated that this continuing resolution (CR), will extend current funding levels into early December, to allow negotiators to reach an agreement and avoid a shutdown. Congress is expected to take up the CR in September, following a return from August recess. Senate Releases Appropriations Bills On July 28, the Senate Appropriations Committee released drafts of its 12 appropriations bills for the 2023 fiscal year. Due to the lack of bipartisan agreement on FY23 spending figures, these bills will serve as a starting point in budget negotiations. The proposed funding levels for each subcommittee are below: • Agriculture: $27 billion • Commerce, Justice, Science, and Related Agencies: $85.8 billion • Defense: $792.1 billion SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022 Page 5 • Energy and Water Development: $57.5 billion • Financial Services and General Government: $29.45 billion • Homeland Security: $59.9 billion • Interior, Environment, and Related Agencies: $42.2 billion • Labor, Health and Human Services, Education, and Related Agencies: $216.1 billion • Legislative Branch: $4.7 billion • Military Construction, Veterans Affairs, and Related Agencies: $317 billion • State, Foreign Operations, and Related Programs: $64.56 billion • Transportation, Housing and Urban Development, and Related Agencies: $89 billion U.S. House of Representatives Passes the Wildfire Response and Drought Resiliency Act On July 26, the House of Representatives passed H.R. 5118, the Wildfire Response and Drought Resiliency Act by a party-line vote. The bill aims to establish programs and grants to address wildfire risks, ecological restoration, droughts, and environmental justice, through the authorization of billions of dollars for federal agencies like the Departments of Agriculture and Interior. Summary of Water Provisions • $600 million for water recycling and reuse projects. • $500 million over three years to address the decreasing water levels in Lake Mead and Lake Powell. • $400 million for aquatic ecosystem restoration and protection projects likely to improve the health of fisheries, wildlife, or aquatic habitat. • $260 million over four years for desalination project development. • $250 million for projects near the Salton Sea in Southern California. • $200 million for a watershed health program created under the Infrastructure Investment and Jobs Act (IIJA). • $150 million for federal stream gauges to be used to measure the water flowing in a river or stream Additionally, the package would authorize $700 million for a competitive grant program for large- scale water recycling and reuse projects. The program was originally established under the IIJA. The measure also would remove a termination date for the program, which is set to end in November 2026. Disadvantaged Communities The bill would authorize $100 million for a new grant program to help disadvantaged communities address a significant decline in drinking water quality and quantity. Projects would have to be in cities or towns with 60,000 residents or less and a median household income of less than 100 percent of the non-metropolitan median household income of the state. The Interior Department plans to prioritize projects where the decline in water quality or quantity is a threat to public health. Water Efficiency The measure would authorize $50 million annually from FY 2023 through FY 2028 to establish a water efficiency and conservation grant program for entities that provide incentives to install commercial or residential water-efficient upgrades. At least 40 percent of the grant would be used SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022 Page 6 to provide water-efficient upgrades for low-income households. It would also authorize $40 million annually from FY 2023 through FY 2028 for a sustainable water loss control program to make grants providing technical assistance to audit public water systems. Water Data The bill would authorize $25 million annually from FY 2023 through FY 2027 to create a water data grant program to support non-federal entities in making water data sets accessible, support water data sharing, and advance water data infrastructure. Next Steps Because the Senate has not passed its own drought and wildfire legislation this bill will likely serve as only the starting point for addressing these issues rather than as final legislation. Republican lawmakers have criticized Democrats for trying to rush the measure through Congress with little bipartisan support. With a lack of congressional agreement, it is likely that the legislation will stall in the Senate until after the November elections. This dynamic provides an opportunity to engage with Senators to shape federal drought and wildfire policy, especially with the office of Senator Dianne Feinstein, who has proposed several water, drought, and wildfire bills during this Congress. EPA Water Workforce Webinar Series The U.S. Environmental Protection Agency is hosting a webinar series highlighting ways in which organization across the water sector are implementing programs to help utilities as they address workforce challenges. Past webinars have included training on retaining workers, developing and maintaining workforce partnerships with water utilities, technology adaptation, the role of state and local workforce boards, and women in the water workforce. The latest webinar in the series will occur on August 24 and will focus on the role water workforce development. More information on the webinar series, including recordings of past webinars can be found here. Registration information for the webinar can be found here. U.S. Army Corps of Engineers Water Infrastructure Financing Program Comment Period The U.S. Army Corps of Engineers (USACE) released a draft rule to establish the Corps Water Infrastructure Financing Program (CWIFP), a program to enable local investments in infrastructure projects that address community water resource needs, promote economic prosperity, and improve environmental quality. To date, CWIFP has received a total of $81 million for credit subsidy and an additional $15.4 million for administration of the program. This will allow USACE to issue up to approximately $7.5 billion in loans to projects that are focused on maintaining, upgrading, and repairing dams identified in the National Inventory of Dams as being owned by non-federal entities. The draft rule to establish CWIFP has been published in the Federal Register for public review and comment until August 9, 2022. SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022 Yorba Linda Water District Wednesday, August 03, 2022    AB 351 (Garcia, Cristina D)   Reduction of human remains and the disposition of reduced human remains.  Current Text: Amended: 6/27/2022   html   pdf  Introduced: 1/28/2021  Last Amend: 6/27/2022  Status: 8/2/2022-In committee: Referred to suspense file.  Is Urgency: N  Is Fiscal: Y  Location: 8/2/2022-S. APPR. SUSPENSE FILE  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The Cemetery and Funeral Act provides for the licensure and regulation of cemeteries, crematoria, hydrolysis facilities, cremated remains disposers, funeral establishments, and their personnel by the Cemetery and Funeral Bureau within the Department of Consumer Affairs. Current law creates the Cemetery and Funeral Fund, which is continuously appropriated for the purpose of implementing the act. Under current law, the violation of the act is a misdemeanor. Current law provides for the disposition of human remains and makes specified acts relating to human remains, including improperly disposing of human remains, a crime. This bill, commencing January 1, 2025, would require the bureau to license and regulate reduction facilities, as defined, and would enact requirements applicable to reduction facilities substantially similar to those applicable to crematoria and hydrolysis facilities and would enact provisions relating to the disposition of reduced human remains by integration into the soil.    AB 1086 (Aguiar-Curry D)   Organic waste: implementation strategy: report.  Current Text: Amended: 7/7/2021   html   pdf  Introduced: 2/18/2021  Last Amend: 7/7/2021  Status: 8/27/2021-Failed Deadline pursuant to Rule 61(a)(12). (Last location was APPR. SUSPENSE FILE on 8/16/2021)(May be acted upon Jan 2022)  Is Urgency: N  Is Fiscal: Y  Location: 8/27/2021-S. 2 YEAR  Desk Policy Fiscal Floor Desk Policy 2 year Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would request that the California Council on Science and Technology, in consultation with its academic and research partners and specified state agencies, undertake and, within 12 months of entering into a contract, complete a report that provides an implementation strategy to achieve the state’s organic waste, and related climate change and air quality, mandates, goals, and targets. If the council agrees to undertake and complete the report, the bill would require the council to provide the report to the relevant state agencies after peer review in order for one or more of the relevant state agencies to conduct at least one public meeting and publish the draft implementation strategy on its internet website. The bill would also require the council, if it agrees to undertake and complete the report, to submit the report to the Legislature. The bill would require the implementation strategy to include, among other things, recommendations on policy and funding support for the beneficial reuse of organic waste.    AB 1240 (Ting  D)   Indoor air pollution.  Current Text: Amended: 1/24/2022   html   pdf  Introduced: 2/19/2021  Last Amend: 1/24/2022  Status: 6/20/2022-In committee: Referred to suspense file.  Is Urgency: N  Is Fiscal: Y  Location: 6/20/2022-S. APPR. SUSPENSE FILE  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law requires the State Air Resources Board, in consultation with other state agencies and interested members of the public, to provide a report to the Legislature on issues relating to indoor air pollution by January 1, 2004.This bill would require the state board to provide to the Legislature an addendum, as specified, to the above-described report by January 1, 2025. The bill would repeal these provisions on January 1, 2029.    AB 1811 (Fong, Mike D)   Local flood protection: planning: climate change. Page 1/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  AB 1811 (Fong, Mike D)   Local flood protection: planning: climate change.  Current Text: Amended: 6/9/2022   html   pdf  Introduced: 2/7/2022  Last Amend: 6/9/2022  Status: 6/29/2022-Read second time. Ordered to Consent Calendar.  Is Urgency: N  Is Fiscal: N  Location: 6/28/2022-S. CONSENT CALENDAR  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law authorizes a local agency to prepare a local plan of flood protection and prescribes that a plan include, among other components, a strategy to meet the urban level of flood protection, including planning for residual flood risk and system resiliency. This bill would require this strategy, if a plan is prepared by a local agency, to also include planning for climate change and rainwater and stormwater management. The bill would require the plan to additionally include an update on the status of coordination with water suppliers on how the management of flood waters can bolster local water supplies.    AB 1817 (Ting  D)   Product safety: textile articles: perfluoroalkyl and polyfluoroalkyl substances (PFAS).  Current Text: Amended: 6/30/2022   html   pdf  Introduced: 2/7/2022  Last Amend: 6/30/2022  Status: 6/30/2022-Read second time and amended. Ordered to third reading.  Is Urgency: N  Is Fiscal: N  Location: 6/30/2022-S. THIRD READING  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Existing law prohibits, beginning January 1, 2023, any person from distributing, selling, or offering for sale in the state any food packaging that contains regulated perfluoroalkyl and polyfluoroalkyl substances or PFAS, as defined, and requires a manufacturer to use the least toxic alternative when replacing regulated perfluoroalkyl and polyfluoroalkyl substances or PFAS in food packaging to comply with this requirement. Existing law similarly prohibits, beginning July 1, 2023, a person from selling or distributing in commerce in this state any new, not previously owned, juvenile product, as defined, that contains regulated PFAS chemicals.This bill would prohibit, beginning January 1, 2025, any person from manufacturing, distributing, selling, or offering for sale in the state any new, not previously owned, textile articles that contain regulated PFAS, except as specified, and requires a manufacturer to use the least toxic alternative when removing regulated PFAS in textile articles to comply with these provisions. The bill would require a manufacturer of a textile article to provide persons that offer the product for sale or distribution in the state with a certificate of compliance stating that the textile article is in compliance with these provisions and does not contain any regulated PFAS.    AB 1845 (Calderon D)   Metropolitan Water District of Southern California: alternative project delivery methods.  Current Text: Amended: 6/16/2022   html   pdf  Introduced: 2/8/2022  Last Amend: 6/16/2022  Status: 8/2/2022-Read second time. Ordered to third reading.  Is Urgency: N  Is Fiscal: Y  Location: 8/2/2022-S. THIRD READING  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would authorize the Metropolitan Water District of Southern California to use the design- build procurement process for certain regional recycled water projects or other water infrastructure projects. The bill would define “design-build” to mean a project delivery process in which both the design and construction of a project are procured from a single entity. The bill would require the district to use a specified design-build procedure to assign contracts for the design and construction of a project, as defined.    AB 1931 (Rivas, Luz D)   Community water systems: lead service lines.  Current Text: Amended: 6/30/2022   html   pdf  Introduced: 2/10/2022  Last Amend: 6/30/2022 Page 2/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Status: 8/2/2022-In committee: Referred to suspense file.  Is Urgency: N  Is Fiscal: Y  Location: 8/2/2022-S. APPR. SUSPENSE FILE  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Existing law prohibits a person from using any pipe, pipe or plumbing fitting or fixture, solder, or flux that is not lead free in the installation or repair of any public water system or any plumbing in a facility providing water for human consumption, except when necessary for the repair of leaded joints of cast iron pipes.This bill would require, until January 1, 2025, or as specified, the State Water Resources Control Board to provide certain federal funds received by the board to community water systems to fund, among other things, the removal or replacement of lead service lines or lead fittings that are owned by a community water system, and the removal or replacement of lead service lines, and galvanized lines downstream of lead service lines or lead components, that are not owned by the community water system, as specified. The bill would also require a community water system to take specified actions when replacing an unknown material user service line or a user service line containing lead.This bill contains other existing laws.    AB 1985 (Rivas, Robert  D)   Organic waste: recovered organic waste product procurement targets.  Current Text: Amended: 8/1/2022   html   pdf  Introduced: 2/10/2022  Last Amend: 8/1/2022  Status: 8/1/2022-From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/29/2022-S. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law requires, no later than January 1, 2018, the State Air Resources Board to approve and begin implementing a comprehensive short-lived climate pollutant strategy to achieve a reduction in statewide emissions of methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030. Current law requires the methane emissions reduction goals to include a 50% reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75% reduction by 2025. Current law requires the Department of Resources Recycling and Recovery, in consultation with the state board, to adopt regulations to achieve these organic waste reduction goals that include, among other things, requirements intended to meet the goal that not less than 20% of edible food that is currently disposed of be recovered for human consumption by 2025 and that may include penalties to be imposed by the department for noncompliance, as provided. The department‘s regulations provide for, among other things, the calculation by the department of recovered organic waste product procurement targets for each local jurisdiction. This bill would require any penalties imposed by the department on a local jurisdiction that fails to meet its recovered organic waste procurement target to be imposed pursuant to a specified schedule based on the percentage of the local jurisdiction’s recovered organic waste product procurement target achieved. The bill would exempt jurisdictions in possession of a specified rural exemption from these requirements until December 31, 2026.    AB 2026 (Friedman D)   Recycling: plastic packaging.  Current Text: Amended: 6/23/2022   html   pdf  Introduced: 2/14/2022  Last Amend: 6/23/2022  Status: 8/2/2022-In committee: Referred to suspense file.  Is Urgency: N  Is Fiscal: Y  Location: 8/2/2022-S. APPR. SUSPENSE FILE  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would require an e-commerce shipper, as defined, that ships purchased products in or into the state to reduce from its 2023 calendar year levels the total weight and number of units of single- use plastic shipping envelopes, cushioning, and void fill, and expanded and extruded polystyrene, it uses to ship or transport the products, by no less than unspecified percentages on or before January 1, 2030. The bill would establish exemptions from these prohibitions.    AB 2142 (Gabriel D)   Income taxes: exclusion: turf replacement water conservation program.  Current Text: Amended: 4/6/2022   html   pdf  Introduced: 2/15/2022 Page 3/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Last Amend: 4/6/2022  Status: 6/27/2022-In committee: Referred to suspense file.  Is Urgency: Y  Is Fiscal: Y  Location: 6/27/2022-S. APPR. SUSPENSE FILE  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law provides an exclusion from gross income for any amount received as a rebate or voucher from a local water or energy agency or supplier for the purchase or installation of a water conservation water closet, energy efficient clothes washers, and plumbing devices, as specified. This bill would, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, under the Personal Income Tax Law and the Corporation Tax Law, provide an exclusion from gross income for any amount received as a rebate, voucher, or other financial incentive issued by a public water system, as defined, local government, or state agency for participation in a turf replacement water conservation program.    AB 2201 (Bennett D)   Groundwater sustainability agency: groundwater extraction permit: verification.  Current Text: Amended: 6/22/2022   html   pdf  Introduced: 2/15/2022  Last Amend: 6/22/2022  Status: 6/30/2022-From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 1.) (June 29). Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/30/2022-S. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would prohibit a county, city, or any other water well permitting agency from approving a permit for a new groundwater well or for an alteration to an existing well in a basin subject to the act and classified as medium- or high-priority unless specified conditions are met, including that it obtains a written verification, from the groundwater sustainability agency that manages the basin or area of the basin where the well is proposed to be located, determining that, among other things, the extraction by the proposed well is consistent with any sustainable groundwater management program established in any applicable groundwater sustainability plan adopted by that groundwater sustainability agency or an alternate plan approved or under review by the Department of Water Resources.    AB 2247 (Bloom D)   Perfluoroalkyl and polyfluoroalkyl substances (PFAS) and PFAS products and product components: publicly accessible reporting platform.  Current Text: Amended: 5/19/2022   html   pdf  Introduced: 2/16/2022  Last Amend: 5/19/2022  Status: 8/2/2022-In committee: Referred to suspense file.  Is Urgency: N  Is Fiscal: Y  Location: 8/2/2022-S. APPR. SUSPENSE FILE  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would require, as part of the hazardous waste control laws, the Department of Toxic Substances Control to work with the Interstate Chemicals Clearinghouse to establish, on or before January 1, 2025, a publicly accessible reporting platform to collect information about perfluoroalkyl and polyfluoroalkyl substances (PFAS) and products or product components containing intentionally added PFAS, as defined, being sold, offered for sale, distributed, or offered for promotional purposes in, or imported into, the state. The bill would require, on or before July 1, 2025, and annually thereafter, a manufacturer, as defined, of PFAS or a product or a product component containing intentionally added PFAS that is sold, offered for sale, distributed, or offered for promotional purposes in, or imported into, the state to register the PFAS or the product or product component containing intentionally added PFAS, and specified other information, on the publicly accessible reporting platform.    AB 2449 (Rubio, Blanca D)   Open meetings: local agencies: teleconferences.  Current Text: Amended: 6/30/2022   html   pdf  Introduced: 2/17/2022  Last Amend: 6/30/2022  Status: 8/2/2022-Read second time. Ordered to third reading.  Is Urgency: N Page 4/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Is Fiscal: N  Location: 8/2/2022-S. THIRD READING  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Existing law, the Ralph M. Brown Act, requires, with specified exceptions, that all meetings of a legislative body of a local agency, as those terms are defined, be open and public and that all persons be permitted to attend and participate. The act contains specified provisions regarding the timelines for posting an agenda and providing for the ability of the public to observe and provide comment. The act allows for meetings to occur via teleconferencing subject to certain requirements, particularly that the legislative body notice each teleconference location of each member that will be participating in the public meeting, that each teleconference location be accessible to the public, that members of the public be allowed to address the legislative body at each teleconference location, that the legislative body post an agenda at each teleconference location, and that at least a quorum of the legislative body participate from locations within the boundaries of the local agency’s jurisdiction. This bill would revise and recast those teleconferencing provisions and, until January 1, 2026, would authorize a local agency to use teleconferencing without complying with the teleconferencing requirements that each teleconference location be identified in the notice and agenda and that each teleconference location be accessible to the public if at least a quorum of the members of the legislative body participates in person from a singular physical location clearly identified on the agenda that is open to the public and situated within the local agency’s jurisdiction. This bill contains other related provisions and other existing laws.    AB 2647 (Levine D)   Local government: open meetings.  Current Text: Amended: 8/1/2022   html   pdf  Introduced: 2/18/2022  Last Amend: 8/1/2022  Status: 8/1/2022-Read second time and amended. Ordered to third reading.  Is Urgency: N  Is Fiscal: N  Location: 8/1/2022-S. THIRD READING  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law makes agendas of public meetings and other writings distributed to the members of the governing board disclosable public records, with certain exceptions. Current law requires a local agency to make those writings distributed to the members of the governing board less than 72 hours before a meeting available for public inspection, as specified, at a public office or location that the agency designates. Current law also requires the local agency to list the address of the office or location on the agenda for all meetings of the legislative body of the agency. Current law authorizes a local agency to post the writings on the local agency’s internet website in a position and manner that makes it clear that the writing relates to an agenda item for an upcoming meeting. This bill would instead require a local agency to make those writings distributed to the members of the governing board available for public inspection at a public office or location that the agency designates and list the address of the office or location on the agenda for all meetings of the legislative body of the agency unless the local agency meets certain requirements, including the local agency immediately posts the writings on the local agency’s internet website in a position and manner that makes it clear that the writing relates to an agenda item for an upcoming meeting.    AB 2771 (Friedman D)   Cosmetic products: safety.  Current Text: Amended: 6/13/2022   html   pdf  Introduced: 2/18/2022  Last Amend: 6/13/2022  Status: 8/1/2022-Read second time. Ordered to third reading.  Is Urgency: N  Is Fiscal: N  Location: 8/1/2022-S. THIRD READING  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would prohibit, beginning January 1, 2025, a person or entity from manufacturing, selling, delivering, holding, or offering for sale in commerce any cosmetic product that contains intentionally added perfluoroalkyl and polyfluoroalkyl substances PFAS, as defined.    AB 2895 (Arambula D)   Water: permits and licenses: temporary changes: water or water rights transfers.  Current Text: Amended: 6/23/2022   html   pdf  Introduced: 2/18/2022  Last Amend: 6/23/2022  Status: 8/2/2022-Read second time. Ordered to third reading. Page 5/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Is Urgency: N  Is Fiscal: Y  Location: 8/2/2022-S. THIRD READING  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law prescribes the process for a permittee or licensee to petition the State Water Resources Control Board for a temporary change due to a transfer or exchange of water rights, and imposes on the board related notice, decision, and hearing requirements. Under that process, a petitioner is required to publish notice of a petition in a newspaper, as specified. Current law requires a petition to contain specified information and requires a petitioner to provide a copy of the petition to the Department of Fish and Wildlife, the board of supervisors of the county or counties in which the petitioner currently stores or uses the water subject to the petition, and the board of supervisors of the county or counties to which the water is proposed to be transferred. This bill would revise and recast the provisions regulating temporary changes due to a transfer or exchange of water rights, including, among other revisions, specifying that those provisions apply to a person who proposes a temporary change for purposes of preserving or enhancing wetlands habitat, fish and wildlife resources, or recreation. The bill would eliminate the requirement that a petitioner publish notice of a petition in a newspaper.    SB 6 (Caballero D)   Local planning: housing: commercial zones.  Current Text: Amended: 6/20/2022   html   pdf  Introduced: 12/7/2020  Last Amend: 6/20/2022  Status: 6/29/2022-From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (June 29). Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/29/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. Current law requires that the housing element include, among other things, an inventory of land suitable and available for residential development. If the inventory of sites does not identify adequate sites to accommodate the need for groups of all households pursuant to specified law, existing law requires the local government to rezone sites within specified time periods and that this rezoning accommodate 100% of the need for housing for very low and low-income households on sites that will be zoned to permit owner- occupied and rental multifamily residential use by right for specified developments. This bill, the Neighborhood Homes Act, would deem a housing development project, as defined, an allowable use on a parcel that is within a zone where office, retail, or parking are a principally permitted use, if the development and site meet specified requirements, including that the site is not adjacent to an industrial use or agricultural use. The bill would require the density for a housing development under these provisions to meet or exceed the density deemed appropriate to accommodate housing for lower income households according to the type of local jurisdiction, including a density of at least 20 units per acre for a suburban jurisdiction. The bill would require the housing development to meet all other local requirements, other than those that prohibit residential use, or allow residential use at a lower density than that required by the bill.    SB 45 (Portantino D)   Short-lived climate pollutants: organic waste reduction goals: local jurisdiction assistance.  Current Text: Amended: 1/3/2022   html   pdf  Introduced: 12/7/2020  Last Amend: 1/3/2022  Status: 6/29/2022-June 29 set for first hearing. Placed on suspense file.  Is Urgency: N  Is Fiscal: Y  Location: 6/29/2022-A. APPR. SUSPENSE FILE  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law requires the Department of Resources Recycling and Recovery, in consultation with the State Air Resources Board, to adopt regulations to achieve the organic waste reduction goals established by the state board for 2020 and 2025, as provided. Current law requires the department, no later than July 1, 2020, and in consultation with the state board, to analyze the progress that the waste sector, state government, and local governments have made in achieving these organic waste reduction goals. This bill would require the department, in consultation with the state board, to provide Page 6/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022 assistance to local jurisdictions, including, but not limited to, any funding appropriated by the Legislature in the annual Budget Act, for purposes of assisting local agencies to comply with these provisions, including any regulations adopted by the department.    SB 222 (Dodd D)   Water Rate Assistance Program.  Current Text: Amended: 6/23/2022   html   pdf  Introduced: 1/14/2021  Last Amend: 6/23/2022  Status: 6/23/2022-Read third time and amended. Ordered to third reading.  Is Urgency: N  Is Fiscal: Y  Location: 6/21/2022-A. THIRD READING  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law requires the State Water Resources Control Board, by January 1, 2018, to develop a plan for the funding and implementation of the Low-Income Water Rate Assistance Program, as prescribed. Current law requires the state board, by February 1, 2018, to report to the Legislature on its findings regarding the feasibility, financial stability, and desired structure of the program, including any recommendations for legislative action that may need to be taken. This bill would establish the Water Rate Assistance Fund in the State Treasury to help provide water affordability assistance, for both drinking water and wastewater services, to low-income residential ratepayers. The bill would make moneys in the fund available upon appropriation by the Legislature to the state board to provide, in consultation with relevant agencies, direct water bill assistance, water bill assistance to residential ratepayers served by eligible systems, as defined, and by tribal water systems that choose to participate and would require 80% of total funds to be directly applied to customer assistance. The bill would authorize the state board to identify and contract with a third- party fund administrator. The bill would impose requirements on the state board in connection with the program, including, among others, within 270 days of the effective date, as defined, adopting guidelines in consultation with relevant agencies and an advisory group for implementation of the program and preparing a report to be posted on state board’s internet website identifying how the fund has performed.    SB 230 (Portantino D)   State Water Resources Control Board: Constituents of Emerging Concern in Drinking Water Program.  Current Text: Amended: 6/22/2022   html   pdf  Introduced: 1/19/2021  Last Amend: 6/22/2022  Status: 6/28/2022-From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (June 28). Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/28/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The State Water Resources Control Board’s duties include, but are not limited to, conducting research, studies, and demonstration programs relating to the provision of a dependable and safe supply of drinking water, enforcing the federal Safe Drinking Water Act, and adopting and enforcing regulations. This bill would require the state board to build upon its existing work dealing with, and work to improve its knowledge of, constituents of emerging concern (CEC) in water and, as part of this work, to improve its knowledge of CECs in drinking water by assessing the state of information, as specified. The bill would authorize the state board to establish, maintain, and direct a dedicated program called the Constituents of Emerging Concern in Drinking Water Program. The bill would authorize the state board to convene a Science Advisory Panel to review and provide recommendations to the state board on CECs for further action, among other duties. The bill would require the state board to provide a report to the Legislature 3 years after the panel is convened on the work conducted by the panel.    SB 480 (Stern D)   Metropolitan Water District of Southern California: rules: inappropriate conduct.  Current Text: Amended: 3/15/2021   html   pdf  Introduced: 2/17/2021  Last Amend: 3/15/2021  Status: 6/13/2022-From inactive file. Ordered to third reading.  Is Urgency: N  Is Fiscal: Y  Location: 6/13/2022-A. THIRD READING Page 7/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The Metropolitan Water District Act provides for the creation of metropolitan water districts and specifies the powers and purposes of a district. The act requires the Metropolitan Water District of Southern California to establish and operate an Office of Ethics and adopt rules relating to internal disclosure, lobbying, conflicts of interest, contracts, campaign contributions, and ethics for application to its board members, officers, and employees. This bill would require the Metropolitan Water District of Southern California to adopt rules relating to inappropriate conduct, as defined, by board members, officers, and employees.    SB 559 (Hurtado D)   Department of Water Resources: water conveyance systems: Water Conveyance Restoration Fund.  Current Text: Amended: 8/30/2021   html   pdf  Introduced: 2/18/2021  Last Amend: 8/30/2021  Status: 9/10/2021-Failed Deadline pursuant to Rule 61(a)(15). (Last location was INACTIVE FILE on 9/8/2021)(May be acted upon Jan 2022)  Is Urgency: N  Is Fiscal: Y  Location: 9/10/2021-A. 2 YEAR  Desk Policy Fiscal Floor Desk Policy Fiscal 2 year Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would establish the Water Conveyance Restoration Fund in the State Treasury to be administered by the Department of Water Resources in consultation with the State Water Resources Control Board and the Department of Fish and Wildlife. The bill would require all moneys deposited in the fund to be expended, upon appropriation by the Legislature, in support of subsidence repair costs, including environmental planning, permitting, design, and construction and necessary road and bridge upgrades required to accommodate capacity improvements. The bill would require the Director of Water Resources to apportion money appropriated from the fund, subject to specified requirements, for the Friant-Kern Canal, Delta-Mendota Canal, San Luis Field Division of the California Aqueduct, and San Joaquin Division of the California Aqueduct.    SB 890 (Nielsen R)   Department of Water Resources: Water Storage and Conveyance Fund: water storage and conveyance.  Current Text: Amended: 2/23/2022   html   pdf  Introduced: 1/31/2022  Last Amend: 2/23/2022  Status: 3/8/2022-March 8 set for first hearing. Failed passage in committee. (Ayes 3. Noes 6.)  Is Urgency: Y  Is Fiscal: Y  Location: 2/9/2022-S. N.R. & W.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would establish the Water Storage and Conveyance Fund in the State Treasury to be administered by the Department of Water Resources. The bill would require all moneys deposited in the fund to be expended, upon appropriation by the Legislature, in support of subsidence repair and reservoir storage costs, including environmental planning, permitting, design, and construction and all necessary road and bridge upgrades required to accommodate capacity improvements. The bill would require the department to expend from the fund, upon appropriation by the Legislature, specified monetary amounts to complete funding for the construction of the Sites Reservoir, and to restore the capacity of 4 specified water conveyance systems, as prescribed, with 2 of those 4 expenditures being in the form of a grant to the Friant Water Authority and to the San Luis and Delta-Mendota Water Authority. This bill would make these provisions inoperative on July 1, 2030, and would repeal it as of January 1, 2031.    SB 891 (Hertzberg D)   Business licenses: stormwater discharge compliance.  Current Text: Amended: 6/21/2022   html   pdf  Introduced: 1/31/2022  Last Amend: 6/21/2022  Status: 6/29/2022-From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 29). Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/29/2022-A. APPR. Page 8/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law requires, when applying to a city or a county for an initial business license or business license renewal, a person who conducts a business operation that is a regulated industry, as defined, to demonstrate enrollment with the National Pollutant Discharge Elimination System (NPDES) permit program by providing specified information, under penalty of perjury, on the application, including, among other things, the Standard Industrial Classification Code for the business, and an applicable identification number, as specified. Current law applies these provisions to all applications for initial business licenses and business license renewals submitted on and after January 1, 2020. This bill would expand the application of these provisions to instruments or permits equivalent to business licenses and to the renewals of those equivalent instruments or permits.    SB 892 (Hurtado D)   Cybersecurity preparedness: food and agriculture sector and water and wastewater systems sector.  Current Text: Amended: 6/16/2022   html   pdf  Introduced: 1/31/2022  Last Amend: 6/16/2022  Status: 6/28/2022-Coauthors revised. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 27). Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/27/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law requires the California Cybersecurity Integration Center (Cal-CSIC) to provide warnings of cyberattacks to government agencies and nongovernmental partners, coordinate information sharing among these entities, assess risks to critical infrastructure information networks, enable cross-sector coordination and sharing of best practices and security measures, and support certain cybersecurity assessments, audits, and accountability programs. Existing law also requires Cal- CSIC to develop a statewide cybersecurity strategy to improve how cyber threats are identified, understood, and shared in order to reduce threats to California government, businesses, and consumers, and to strengthen cyber emergency preparedness and response and expand cybersecurity awareness and public education. This bill would require the Office of Emergency Services (Cal OES) to develop, propose, and adopt optional reporting guidelines applicable to companies and cooperatives in the food and agriculture industry and entities in the water and wastewater systems industry if they identify a significant and verified cyber threat or active cyberattack. The bill would require a report of cyberattack or cyber threat submitted pursuant to guidelines developed pursuant to these provisions to be confidential and would prohibit disclosure as a public record. The bill would require Cal OES to direct Cal-CSIC to prepare, and Cal OES to submit to the Legislature on or before January 1, 2024, a strategic, multiyear outreach plan to assist the food and agriculture sector and the water and wastewater sector in their efforts to improve cybersecurity and an evaluation of options for providing grants or alternative forms of funding to, and potential voluntary actions that do not require funding and that assist, those sectors in their efforts to improve cybersecurity preparedness.    SB 991 (Newman D)   Public contracts: progressive design-build: local agencies.  Current Text: Amended: 6/20/2022   html   pdf  Introduced: 2/14/2022  Last Amend: 6/20/2022  Status: 6/20/2022-Read second time and amended. Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/16/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would, until January 1, 2029, authorize local agencies, defined as any city, county, city and county, or special district authorized by law to provide for the production, storage, supply, treatment, or distribution of any water from any source, to use the progressive design-build process for up to 15 public works projects in excess of $5,000,000 for each project, similar to the progressive design-build process authorized for use by the Director of General Services. The bill would require a local agency that uses the progressive design-build process to submit, no later than January 1, 2028, to the appropriate policy and fiscal committees of the Legislature a report on the use of the progressive design-build process containing specified information, including a description of the projects awarded using the progressive design-build process. The bill would require the design-build entity and its general partners or joint venture members to verify specified information under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program.    SB 1124 (Archuleta D)   Public health goal: primary drinking water standard: manganese. Page 9/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Current Text: Amended: 6/23/2022   html   pdf  Introduced: 2/16/2022  Last Amend: 6/23/2022  Status: 6/28/2022-From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 2.) (June 28). Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/28/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Would require, on or before July 1, 2025, the Office of Environmental Health Hazard Assessment (OEHHA) to prepare a public health goal for manganese, as provided. The bill would require the State Water Resources Control Board, after OEHHA publishes a public health goal for manganese, to adopt a primary drinking water standard, as defined, for manganese and to establish for that standard, and for the period before adoption of that standard, monitoring requirements for manganese, as specified. The bill would require, on or before January 31, 2024, the state board to consider establishing a notification and response level for manganese that would remain in place until the state board adopts a primary drinking water standard for manganese. The bill would authorize the state board, before adopting a primary drinking water standard for manganese, to continue to provide funding for treatment, source protection, and alternative water supplies and to continue to require community water systems to monitor manganese in their source water and within their distribution systems, as provided.    SB 1144 (Wiener D)   Water efficiency and quality assessment reports: state buildings and public school buildings.  Current Text: Amended: 8/2/2022   html   pdf  Introduced: 2/16/2022  Last Amend: 8/2/2022  Status: 8/2/2022-Read second time and amended. Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 8/1/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The California Safe Drinking Water Act requires the State Water Resources Control Board (state board) to administer provisions relating to the regulation of drinking water to protect public health. In this regard, existing law prohibits a person from using any pipe, pipe or plumbing fitting or fixture, solder, or flux that is not lead free in the installation or repair of any public water system or any plumbing in a facility providing water for human consumption, except as provided. This bill would require, no later than January 1, 2027, except as provided, an operating agency, as defined, to complete a water efficiency and quality assessment report, as specified, for each covered building. The bill would define a “covered building” to mean a building owned and occupied, or leased, maintained, and occupied, by a state agency, or a public school building, including a charter school building, as described. If the report identifies noncompliant plumbing fixtures and noncompliant appliances, the bill would require the operating agency to replace those fixtures and appliances that fail to meet water efficiency standards, as specified, at the earliest practical time, subject to available funding. If the report determines that a building’s potable water system is contaminated with lead, the bill would require the operating agency to fit all drinking and cooking water sources with particulate and lead filters as soon as possible, no later than one year from receipt of the report, subject to available funding, as specified. If a building contains lead pipe, the bill would require the operating agency to replace the lead pipe at the earliest practical time, subject to available funding. If the report determines that a building contains pipe of unknown material that was installed prior to 2010, the bill would require the operating agency to either treat the pipe as lead pipe or test the pipe to determine if it meets the definition of lead pipe.    SB 1157 (Hertzberg D)   Urban water use objectives.  Current Text: Amended: 6/16/2022   html   pdf  Introduced: 2/17/2022  Last Amend: 6/16/2022  Status: 6/16/2022-Read second time and amended. Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/14/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Page 10/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Summary: Current law, until January 1, 2025, establishes 55 gallons per capita daily as the standard for indoor residential water use. Current law establishes, beginning January 1, 2025, the greater of 52.5 gallons per capita daily or a standard recommended by the Department of Water Resources and the State Water Resources Control Board as the standard for indoor residential water use, and beginning January 1, 2030, establishes the greater of 50 gallons per capita daily or a standard recommended by the department and the board as the standard for indoor residential water use. Current law requires the board, in coordination with the department, to adopt by regulation variances recommended by the department and guidelines and methodologies pertaining to the calculation of an urban retail water supplier’s urban water use objective recommended by the department. This bill would eliminate the option of using the greater of 52.5 gallons per capita daily and the greater of 50 gallons per capita daily, as applicable, or a standard recommended by the department and the board as the standard for indoor residential water use. The bill would instead require that from January 1, 2025, to January 1, 2030, the standard for indoor residential water use be 47 gallons per capita daily and beginning January 1, 2030, the standard be 42 gallons per capita daily.    SB 1188 (Laird D)   Safe Drinking Water State Revolving Fund: financial assistance.  Current Text: Amended: 3/15/2022   html   pdf  Introduced: 2/17/2022  Last Amend: 3/15/2022  Status: 6/28/2022-From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 8. Noes 0.) (June 28). Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/28/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The Safe Drinking Water State Revolving Fund Law of 1997 establishes the continuously appropriated Safe Drinking Water State Revolving Fund to provide financial assistance for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards. Current law authorizes the State Water Resources Control Board, to the extent permitted by federal law, to provide up to 100% grant funding, and principal forgiveness and 0% financing on loans, from the fund to a project for a water system that serves a severely disadvantaged community. Current law requires the interest rate for repayable financing provided from the fund to be 0% if the financing is for a public water system that serves a disadvantaged community with a financial hardship or if the financing is for a public water system that provides matching funds. This bill would delete those provisions relating to 0% financing and interest and would instead generally authorize the board, to the extent authorized by federal law, to provide reduced or 0% financing to further the purposes of the Safe Drinking Water State Revolving Fund Law of 1997.    SB 1205 (Allen D)   Water rights: appropriation.  Current Text: Amended: 6/30/2022   html   pdf  Introduced: 2/17/2022  Last Amend: 6/30/2022  Status: 6/30/2022-Read second time and amended. Re-referred to Com. on APPR.  Is Urgency: N  Is Fiscal: Y  Location: 6/28/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The State Water Resources Control Board administers a water rights program pursuant to which the board grants permits and licenses to appropriate water. As a prerequisite to the issuance of a permit to appropriate water, current law requires certain facts to exist, including that there is unappropriated water available to supply the applicant. This bill would require the board to develop and adopt regulations to govern consideration of climate change in water availability analyses used in the board’s review of applications for water rights permits, including consideration of the effects of climate change, as specified, upon watershed hydrology as part of the preparation of water availability analyses. The bill would require the board to consult with the Department of Water Resources, the Department of Fish and Wildlife, and qualified hydrologists and climate change scientists, among others, in preparing the regulations.    SB 1254 (Hertzberg D)   Drinking water: administrator: managerial and other services.  Current Text: Amended: 6/15/2022   html   pdf  Introduced: 2/17/2022  Last Amend: 6/15/2022  Status: 6/21/2022-From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 10. Noes 0.) (June 21). Re-referred to Com. on APPR. Page 11/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Is Urgency: N  Is Fiscal: Y  Location: 6/21/2022-A. APPR.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to contract with, or provide a grant to, an administrator to provide administrative, technical, operational, legal, or managerial services, or any combination of those services, to a designated water system to assist with the provision of an adequate supply of affordable, safe drinking water. Current law prescribes the processes and procedures pursuant to which the state board may identify a designated water system in need of services, order a designated water system to accept services from an administrator, and work with the administrator of a designated water system to develop adequate technical, managerial, and financial capacity to deliver an adequate supply of affordable, safe drinking water so that administrator services are no longer necessary. This bill would, among other things, revise the definition of “designated water system” and limit the liability of an administrator when the state board appoints an administrator to a designated water system, as prescribed.    SB 1266 (Borgeas R)   Income taxes: credits: designated wildfire zones.  Current Text: Amended: 6/13/2022   html   pdf  Introduced: 2/18/2022  Last Amend: 6/13/2022  Status: 6/20/2022-June 20 hearing: Heard for testimony only.  Is Urgency: Y  Is Fiscal: Y  Location: 6/2/2022-A. REV. & TAX  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Current law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill would allow a credit against those taxes for each taxable year on or after January 1, 2023, and before January 1, 2028, in an amount that is equal to 50% of the amount incurred, subject to specified limitations, by a natural person or a small business, as defined, during the taxable year for the purchase of a backup electricity generator or a solar battery for use in a residence or commercial property in a designated wildfire zone, as defined. The bill would define “backup electricity generator” to mean a standby or portable device that can generate at least 10 kilowatts, is designed and manufactured exclusively for the purpose of generating electricity, and complies with applicable air quality standards promulgated by the State Air Resources Board. The bill would provide that the credit is only operative for taxable years for which an appropriation is made for its purposes in the annual Budget Act or other statute. The bill would also include additional information required for any bill authorizing a new tax expenditure.    SB 1442 (Borgeas R)   Water conservation and reclamation projects.  Current Text: Introduced: 2/18/2022   html   pdf  Introduced: 2/18/2022  Status: 3/9/2022-Referred to Com. on RLS.  Is Urgency: N  Is Fiscal: N  Location: 2/18/2022-S. RLS.  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: Current law establishes the Water Conservation Projects Act of 1985 and declares the intent of the Legislature to encourage local agencies and private enterprise to implement water conservation and reclamation projects. This bill would make nonsubstantive changes to related legislative findings and declarations.    SB 1459 (Caballero D)   State water policy.  Current Text: Introduced: 2/18/2022   html   pdf  Introduced: 2/18/2022  Status: 3/9/2022-Referred to Com. on RLS.  Is Urgency: N  Is Fiscal: N  Location: 2/18/2022-S. RLS. Page 12/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022  Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House  Summary: The Porter-Cologne Water Quality Control Act requires the State Water Resources Control Board to formulate and adopt state policy for water quality control. This bill would make nonsubstantive changes to that provision. Total Measures: 35 Total Tracking Forms: 69 Page 13/13 SUPPLEMENTAL MATERIALS ITEM NO. 10.2. SUBMITTED BY: Alison Martin MEETING DATE: August 9, 2022