Loading...
HomeMy WebLinkAbout2009-08-17 - Executive-Administrative-Organizational Committee Meeting Agenda Packet 'rb Linda Water District AGENDA YORBA LINDA WATER DISTRICT EXEC-ADMIN-ORGANIZATIONAL COMMITTEE MEETING Monday, August 17, 2009, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director John W. Summerfield, Chair Ken Vecchiarelli, General Manager Director William R. Mills Pat Grady, Assistant General Manager 1. PUBLIC COMMENTS Any individual wishing to address the committee is requested to identify themselves and state the matter on which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on this agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 2. ACTION CALENDAR This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 2.1. Proposed Payment Plan for Grandview Sewer Connection Recommendation: That the Committee support staffs recommendation that Mr. Ante Marovic receive approval to pay the remaining balance of $9,000 due for the sewer connection to 5551 Grandview Avenue in nine monthly installments of $1,000 each, with the first payment due within 15 days following Board approval, and subsequent payments due each month thereafter until paid in full. 2.2. Draft Responses to 2009 Grand Jury Reports Recommendation: That the Committee provide comments to staff and recommend that the draft responses be presented at the August 27th regular meeting for Board consideration. 3. DISCUSSION ITEMS This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda may also include items for information only. 3.1. Request for Letter of Support for AB 1506 3.2. Annexation to OCWD 3.3. City of Yorba Linda and City of Placentia Sewers 3.4. Board Member Attendance at MWDOC and OCWD Board Meetings on a Monthly Basis 3.5. Reports on Legislative Activities - Sacramento Advocates 3.6. Reports on Grant Activities - Townsend Public Affairs 3.7. Report on Legislative Bills - McCormick, Kidman & Behrens 3.8. General Counsel's Monthly Summary Billing Reports 3.9. Directors' and General Manager's Fees and Expenses (Apr-Jun) 3.10. Future Agenda Items and Staff Tasks 4. ADJOURNMENT 4.1. The next regular meeting of the Executive-Administrative-Organizational Committee will be held September 15, 2009 at 4:00 p.m. Items Distributed to the Committee Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Committee less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 2.1 AGENDA REPORT Meeting Date: August 17, 2009 To: Executive-Administrative- Organizational Committee From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Manager Prepared By: Steve Conklin, Engineering Manager Subject: Proposed Payment Plan for Grandview Sewer Connection SUMMARY: An unapproved connection was made to the Grandview Sewer at the time of construction in 2007. In a meeting with District staff on August 3, 2009 Mr. Ante Marovic, the property owner, made a payment for over half of the total amount due the District and is requesting approval to pay the balance in nine monthly installments of $1,000 each. Staff recommends approval of the proposed payment plan. STAFF RECOMMENDATION: That the Committee support staff's recommendation that Mr. Ante Marovic receive approval to pay the remaining balance of $9,000 due for the sewer connection to 5551 Grandview Avenue in nine monthly installments of $1,000 each, with the first payment due within 15 days following Board approval, and subsequent payments due each month thereafter until paid in full. DISCUSSION: On May 28, 2009, the Board approved an adjusted frontage fee charge for construction of the Grandview Sewer in the amount of $15,767 for each of the ten residences which can be served by the sewer line. The sewer line was constructed in 2007 with District funds as part of a larger pipeline project, with the intent of having the residents on Grandview reimburse the District for their proportional share of the construction cost and other related fees for hookup to the new sewer. At the time of construction, an unapproved connection was made to the sewer for 5551 Grandview Avenue, owned by Mr. Ante Marovic. With the Board's approval of the frontage fee, staff moved forward to request payment from Mr. Marovic for his existing connection to the sewer. Staff sent a letter to Mr. Marovic dated June 1, 2009 (copy attached), advising him of the payment due to the District and of his responsibility to pay other fees due the City of Yorba Linda. Staff met with Mr. Marovic on June 4 to discuss the situation and his plan for payment. He indicated that he would investigate options for payment. Staff had follow-up telephone conversations with Mr. Marovic in mid-June. He indicated that due to the current economic situation he is unable to get a loan to cover the payment and asked if the District might allow payment over time. Further internal discussions followed, including consultation with the District's legal counsel to identify options. On August 3, District staff met with Mr. and Mrs. Marovic to further discuss the situation and options available. In the discussion, Mr. Marovic reiterated that he tried but was unable to get a property loan for the $19,146 due the District. However, he acknowledged that he could make a payment of $10,146 that day and monthly payments of $1,000 each for the following nine months to pay off the balance. Staff accepted the check from Mr. Marovic for $10,146 and indicated that approval of the requested monthly payment plan will be brought to the Board for consideration. If the payment plan is approved by the Board staff will prepare a Letter of Understanding to be signed by Mr. Marovic describing the payment plan and stating that if the monthly payments are not paid when due, the remaining balance will be immediately due and payable, with that balance added to his next water bill. ATTACHMENTS: Grndview Ltr Marovich 1Jun09.pdf -'ayment Request Letter Backup Material Water District Reliable and Trusted Service for More Than 100 Years June 1, 2009 Mr. Ante Marovich 5551 Grandview Avenue Yorba Linda, CA 92886 Subject: Grandview Sewer Main Update/ Unpermittcd Connection Dear Mr. Marovich, This is to update you on the status of the subject project. Can May 28, 2009, the Board of Directors approved an adjusted frontage flee charge for constriction of the project in the amount of 515,767 for each of' the ten residences which can be served by the sewer line. For those homeowners who choose to connect, the District will also collect a design cost of $1,610 per residence. These amounts represent the homeowner's share of the District's total design, construction and inspection cost for the installation of the sewer main on Grandview Avenue. It does not include fees that arc normally paid to connect to the public sewer system., or other charges by the City of Yorba Unda to connect to the sewer. The District has found that your property was connected to the new sewer in Grandview Avenue during construction activities in. February 2007. The following payments are due to Yorba Linda Water District within 30 days of this letter: $15,767.00 Construction and inspection cost S1,610.00 Design cost $448.20 Service Fee based on 0.27 acres S1,180.00 Single Service Fee $141.00 Maintenance Fee for 28 months 519,146.20 Total due by July 1, 2009 Vote that other fees are also clue and payable to the City of Yorba Linda.. Please contact the City regarding those fees. If you have any questions, please call. Sincerely (6.) YP vc Conklin, P.E. Sa' Engineering Manager (714) 701-3102 copy: Kenneth R. Vecch arelli, General Manager, YLWD Matt Bennett, Sr. Civil Engineer, City of Yorba Linda 1717 E. Miraloma Avenue Placentia, CA 92870 714-701-3000 714-701-3058 Fax ITEM NO. 2.2 AGENDA REPORT Meeting Date: August 17, 2009 Budgeted: N/A To: Executive-Administrative- Organizational Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Pat Grady, Assistant General Dept: Administration Manager Reviewed by Legal: N/A Prepared By: Pat Grady, Assistant General CEQA Compliance: N/A Manager Subject: Draft Responses to 2009 Grand Jury Reports SUMMARY: Attached for the Committee's review and discussion are YLWD's draft responses to the 2009 Grand Jury reports. STAFF RECOMMENDATION: That the Committee provide comments to staff and recommend that the draft responses be presented at the August 27th regular meeting for Board consideration. DISCUSSION: In June 2009, the Orange County Grand Jury issued two reports entitled "Paper Water - Does Orange County have a Reliable Future" and "Water Districts: A New Era in Public Involvement". The District is compelled to respond to both reports by September 17, 2009 pursuant to Penal Code 933.05(a) and (b). Staff has drafted responses to both reports. The responses related to "Paper Water" was a joint effort among the Orange County Water Agencies coordinated by MWDOC. Staff participated in this effort and believed a unified message was the best approach since 50% of the District's water supply is imported and purchased from MWDOC and the remaining 50% is extracted from the OCWD managed groundwater basin. As such, the District has no control of this water reliability and cannot commit water resources to future City developments without MWDOC and OCWD participation in the process. The responses to the second Grand Jury report related to "Public Involvement" was drafted internally by Staff. Attached for the Committee's review and discussion are the draft responses to be submitted to the Presiding Judge and the Grand Jury. At the Committee meeting, Staff will review the reports and responses in summary form. PRIOR RELEVANT BOARD ACTION(S): None. ATTACHMENTS: ;escription: Type: Grandjurvresponse Paper Water pdf Grand Jury Response - Paper Water Backup Material Grandjurvresponse New Era.doc hand Jury Response - New Era Backup Material September 1, 2009 Honorable Kim Dunning Presiding Judge of the Superior Court 700 Civic Center Drive West Santa Ana, CA 92701 Re: 2008/09 Orange County Grand Jury Report "Paper Water - Does Orange County Have a Reliable Future?" Honorable Kim Dunning: Thank you for your interest and examination of the reliability of water supplies to the Orange County area. We are grateful for your interest and believe it will add to the voices trying to raise awareness of our current water supply problems. Yorba Linda Water District ("YLWD") agrees that the state and Southern California has a water supply problem at this time. It is our intent to clarify a number of the findings and the recommendations. For example, we concur that the cutbacks on the state Water Project supplies beginning in 2007 has occurred due to the issuance of the biological opinion related to the Endangered Species Act and the impacts of the Delta pumping on the Smelt fish. Prior to that time, our water supplies were much more reliable. This serves as an example that the water supply problem is primarily occurring outside of Orange County and therefore it's not necessarily within our span of control or the Metropolitan Water District of Orange County ("MWDOC"). In summary, we would like to comment in the following areas: ■ Increasing Orange County's water supply, with the exception of development of local supplies such as conservation, ocean desalination and water recycling, is predominantly not within our control. ■ The regulatory process causing impacts to our water supplies is very complex and educating the public to grasp the specifics of the situation is difficult and not necessarily required in soliciting their help in responding to the call for additional levels of conservation. ■ MWDOC's polling, and the public's interest in water conservation rebates indicates that a high percentage of consumers understand we currently face restrictions in our supplies. ■ Together with MWDOC, we have communication systems in place that provide ample opportunity for the public to learn specifics on the reliability of water supplies. Additionally, the Urban Water Management Plan and other documents can be readily obtained from YLWD. 1 ■ The availability of water from the Orange County Water District ("OCWD") groundwater basin is controlled via legislative and water rights law. Within these limitations, the basin and non-basin areas are already working well together. ■ The Grand Jury Report has mixed up issues associated with emergency preparedness with supplies from the Bay-Delta area and emergency preparedness of supplies internal to the County. The Water Emergency Response Organization of Orange County (WEROC) does a very good job of planning for emergency response in the County. Participation in the 2008 Golden Guardian exercise is exactly what was recommended by the Grand Jury. ■ From the 1920's up until the 1980's, federal, state and local governments spoke with one voice about water issues and designed the water supply system accordingly. In the 20 years since the defeat of the Peripheral Canal, Southern California has used water conservation, water recycling and the purchase of miscellaneous water rights to provide water for growth. The purchase of water rights is limited, we've maximized indoor conservation and water recycling has been met with varying degrees of success. ■ The biggest urgency in solving the long term water supply problems that affect most of the state of California is for the Governor, the legislature (democrats and republicans), the Department of Water Resources and the Federal Regulatory entities working together to resolve the issues. ■ Attempts to balance all of the competing interests required to solve the water supply problem have created an impasse. Work is underway to resolve this, but developing a long-term solution in the Bay-Delta area is likely a 20-year issue that will cost between $10 and $20 billion to resolve, IF agreement can be reached between all stakeholders. ■ If allowed under their charter, a recommendation for a future Grand Jury is to investigate progress at the state Level. Any assistance the Grand Jury can provide in resolving that situation would be appreciated. Some believe that a long-term resolution of the Bay-Delta will never occur while others believe that a major water shortage or catastrophic event will have to occur to motivate the state in developing a solution. We are prepared to assist the Grand Jury in this effort, if called upon. ■ Today, as we respond to this Report, YLWD is currently under a Stage 2 (10-20% water reduction) mandatory water conservation level. Because everyone is not in an immediately dire situation, members of the water community are mixed in their opinion of the current water supply situation. Some believe "crisis" is the proper characterization, while others believe it is a "problem" that will be solved in time. A very severe drought or an earthquake causing failure of levees may expedite a solution. The "crisis" group believes we dodged a bullet this year, we are living year to year and we can't be successful in the long run under the status quo. The "problem" group noted that reservoirs can quickly recover and that we are officially in an El Nino position (wet year coming up). Findings Following are our specific responses on the 2009 Grand Jury Findings and Recommendations: F.1: There is inadequate coordination between local land-use planning agencies and local water supply agencies, resulting in a process that fails to fully engage the issues. (a). Water agencies have tended to avoid interfering with or participating in growth-management decisions. (b). Cities and the County have tended to not critically evaluate the limitations of the water agencies' supply projections. YLWD disagrees with this Finding Water agencies are not land planning agencies - by design. Historically and today, water communities have had the responsibility of providing water for the approved land use. Planning being performed at the local, regional and state levels is aimed at using our existing water supplies more efficiently and developing new supplies and systems to accommodate the current and future needs of our residents and businesses and to improve supply reliability where necessary. What sometimes causes a bit of a dilemma is that since the formation of Metropolitan Water District of Southern California (MET) in 1928, all entities in Southern California have come under the MET water supply umbrella. This prevents the District from assigning specific imported water rights to any single entity or property. On a regional basis, when MET has surplus, we all have surplus and when MET has a shortfall, we all have a shortfall. With water supplies to MET being cut back, as discussed below, it can be somewhat difficult to quantify the water supply reliability to a particular area. The linkage of regional and local water supplies within the MET service was strengthened and clarified after the defeat of the "peripheral canal" beginning in the early 1990's with the development of MET's Integrated Resources Plan (IRP) where it was declared "through the implementation of the IRP, MET and its member agencies will have the full capability to meet full-service demands at the retail level at all times." Through this commitment it was recognized that retail water supply reliability is dependent on the development and efficient management of both local water resources and imported water sources. A significant responsibility was placed on MET to develop: (1) water management programs that support the development of cost-effective local resources, in conjunction with the local agencies, (2) securing additional imported supplies as necessary through programs that increase the availability of water delivered through the Colorado River Aqueduct and the state Water Project, (3) providing the infrastructure needed to integrate imported and local sources (treatment, distribution, storage), (4) establishing a comprehensive management plan dealing with periodic surplus and shortage conditions, and (5) developing a rate structure to strengthen MET's financial capabilities to implement water supply programs and make infrastructure improvements. Through the IRP commitment, an equal burden was placed on the local retail agencies to explore and develop local supplies in a systematic manner and use all water resources efficiently while providing financial stability to MET for the development of its system. Collectively this "partnership" was envisioned to provide the ability "to meet full- service demands at the retail level at all times." 3 Although the water supply situation has changed drastically since the judicial ruling handed down in 2007, the same framework and goals still apply. The change in the underpinning of our water supplies, as noted by the Grand Jury, is the significant immediate loss of a large portion of supplies from the State Water Project due to enforcement of the Endangered Species Act on a species by species basis starting with the Delta Smelt beginning in 2007. Until that time, the joint regional and local systems were meeting all demands and plans were in place to meet actual and projected demands out to 2035. The following is in progress to resolve the water supply situation: 1. New sources are being developed (conservation, transfers, desalination and recycled water) 2. Water transfers have been secured; more are being investigated; despite cutbacks, the Colorado River Aqueduct will be almost full in 2009. 3. Legal challenges and appeals have been filed on behalf of the water users to resolve some of the cutbacks and to explore what is necessary to resolve issues within our current framework. 4. Appeals have been made to the Governor and the Legislature. The state has initiated environmental review for the Bay Delta Conservation Plan (BDCP). The EIR/EIS evaluates the impacts of BDCP, including studies on new conveyance and ecosystem restoration. The Delta Vision Committee has submitted its final implementation report to the Governor with recommended actions on how the California Delta should be managed to fulfill its equal goals of water supply reliability and ecosystem restoration. The plan sets priorities based on the Delta Vision Strategic Plan developed by the Governor's Delta Vision Blue Ribbon Task Force. 5. Progress is being made on installation of the two-gate barrier system in Old River and Middle River to provide a barrier to keep the Delta Smelt away from the pumps. When this is constructed, it should result in recouping some of the supplies recently lost. 6. MET is embarking on an update of its IRP which is looking long term at sources for meeting the needs of customers in Southern California, under the changed circumstances (as can best be predicted) out to 2035. Updates for course corrections occur about every five years. 7. At the local level within Orange County, many efforts are underway to help mitigate the imported supply losses and to improve supply reliability. Orange County is a leader in water recycling, implementation of water use efficiency efforts and management of the OCWD groundwater basin. The Grand Jury rightly acknowledged OCWD for development of the GWRS Project; Phase 2 of the Project is now under design to increase production from 72,000 AF per year up to 102,000 AF per year. In addition, local agencies are continuing development of production wells, well head treatment in areas where needed, brackish water desalting and in Orange County we are currently looking at two potential ocean desalination plants to produce new supplies. Orange County's 4 current and future water supply and demand scenarios for 2010 and 2035 are illustrated below. Supplies from ocean desalination projects are shown at about 9% (Dana Point and Huntington Beach) of the total demand in Orange County and would offset an equal amount of imported water. Key to development of ocean desalination projects is how we can design these systems to be environmentally friendly as well as being cost-effective solutions. Orange County Water Supply and Demand UV~A~ g t rm 6 uyPS Rap\e~ p~.V \ rs PFy c` 17, pE41~~ Recycled Recycled 115,0180 AFY 110,000 AFY 17%11 Santa Ana River 22 Santa Ana River and Local and Local Rainfall/Streamflow Rainfall/Streamflow 270,000 AFY 300,000 AFY Imported 39% Imported 38% 305,OOO AFY 310,000 AFY, 44% 40% << - ` F t„_ mot,. 2010 - 2035 690,000 AFY 780,000 AFY F.2: California's looming water supply crisis receives very little, if any, expressed concern from the public in comparison to the numerous other environmental issues presented during development project reviews. (a). Orange County's citizens and interest groups do not appear to grasp the seriousness of the water supply situation or the complexity and urgency of the necessary solutions. (b). Several recent, substantial water supply awareness efforts are underway (e.g. the O.C. Water Summit) that show promise but appear targeted to audiences that are already informed. YLWD agrees with this Finding While YLWD may agree that the water crisis receives little concern, it is not for lack of effort by the water community. Water is not as visible as traffic congestion because the public cannot feel the "water congestion" until cutbacks become mandatory. This is part of the difficulty and the challenge of stressing water issues that the public will recognize and understand. What are outlined below are the outreach efforts that are currently being utilized along with several questions: 5 ■ Is this a crisis? What should we do about it? What can we do about it? Crisis communications cannot be sustained over the long run. Some in the water community believe that we have reached a crisis, while others believe it is a problem to be resolved over time. The water community itself does not speak with one voice. ■ What do we want the public to do about it? How can the public best be motivated? Do we want to scare the public? ■ What course of action will maintain the best working relationship with the public and build the most trust for the long run? The public needs to trust what the water community is doing and support investments in our water future. Also, a course of action to develop and sustain long term changes in the efficiency of use by customers is critical in addition to an informed constituency for decision-making and voting (when necessary). ■ The water community has been extremely successful, leading to complacent consumers. The crisis facing us is a combination of regulatory, judicial/legal, political, environmental and to a lesser degree, financial. There are considerable challenges for the public to understand the intricacies and nuances of this framework. However, the gains from having a better informed public are to motivate them towards an improved efficiency with which they use water, have them understand the need for additional investments for new supplies and to have them educated for purposes of securing positive votes on water related initiatives, if needed. Water is not a sexy topic unless there is a line break with a major sink hole, a sewer spill, or people forced to curtail their use. Typically, people do not see the intricacies of providing water to homes and businesses. Many take water for granted, which causes it to be undervalued. Customers turn on the tap and the water comes out - sprinklers turn on and the water comes out. The water industry typically does not have brown outs or black outs, but has a high degree of reliability and safety, probably somewhere beyond 99.99% of time water comes out of the tap). Many have the belief that the water supply system is something that they - and prior generations - have invested in and that artificial constraints limit the supply of water from it. The water industry has many communication and outreach avenues, but the spending by public entities is generally low compared to industries that would spend at much higher levels to brand or market new products. Still, water industry communications can be and are effective. In recent years, the water industry has collectively advertised itself as the "Family of Southern California Water Agencies" and promoted "Bewaterwise.com" to promote the water supply situation and water conservation tips and opportunities. YLWD utilizes bill stuffers, newsletters and websites to inform the public. In Orange County, a monthly Public Affairs Workgroup meeting occurs made up of the staffs from all of the retail agencies. They work to develop and implement consistent message points for the public. MET also has a Public Information Officer's workgroup that coordinates outreach and communication among the MET member agencies. Due to the expense and the limited budgets of the retail agencies, the brunt of the TV and radio media outreach has been developed via MET through an advertising campaign for the LA & San Diego markets. 6 While YLWD is open to new methods of communication, we believe the existing communication system works. Polling conducted from time to time to track water industry messages and the understanding of the public indicates that high percentages of people understand there is a water crisis (76% in a recent survey by MWDOC). Furthermore, 78% indicated they would change their water using habits to conserve to prevent water rationing and 67% believe that their water agency does an effective job of keeping them informed about water supply. We also believe high percentages of the public are engaged because of recent actions such as the "run" on rebates for water conservation devices, which pushed spending up to a point where the available funding was exceeded several times over. The following is an outline of current outreach efforts ■ In June of 2008, Public Affairs Workgroup began developing a regional message that incorporated three critical elements of a long term communication strategy: • The message must be positive • Focus on water-use efficiency and eliminating water waste • Adaptable at the retails level ■ A comprehensive, strategic communication plan was developed that incorporates grassroots education, strategic partnerships and guerrilla marketing techniques. Research has shown that this approach has been most successful in achieving social change. ■ This plan augments and enhances the large media campaign that Metropolitan is orchestrating ■ Increases visibility throughout the region ■ Integrates new technology and social marketing channels as well. ■ Critical part of the plan is to engage strategic partners to help carry the message. Everyday new partners are signing on. Current strategic partners include: • IBM • Hurley Sportswear • Volcom • Sempra Energy • Surfer Magazine • Latino Water Coalition • TransWorld Media • Sunset Magazine • Fuel TV ■ Other parts of the program include: • Huell Howser contracted with the Association of California Water Agencies to produce 15 episodes about California Water. This series is being utilized to help inform citizens. • Cable channels are being used to get the word out 7 • Educational trips are provided by MET for each of its Directors to host community leaders to promote water issues • MWDOC has one of the best School Education Programs in the state for water awareness education in grades K-6; it reaches about 90,000 students per year and has reached about 3,000,000 since 1972. • Water Heroes - a new program aimed at kids and families, focuses on identifying water wasting habits and eliminating them. Over the past two years 7500 kids have signed up on www.ocwaterhero.com Given all of this communication and work that is planned, will there still be shortages as part of the "looming water crisis"? As discussed in other locations in this response, there are many issues that need to be resolved to fix the state's water crisis. Until then, we fully expect that water shortages will occur from time to time. F.3: LAFCO is the agency charged with facilitation constructive changes in governmental structure to promote efficient delivery of services. To this end, LAFCO is conducting a governance study of MWDOC which is the designated representative for nearly all of the Orange County retail water agencies, acting on their behalf with their surface water supplier Metropolitan. (a). There are a number of points of governance disagreement between MWDOC and several of its member agencies. This is creating an impediment to the on-going effectiveness of these agencies in critical areas of Orange County's water supply management. (b). The current disagreement is a distraction from the greater good of the agencies working toward Orange County's water future. (c). The stakeholders in LAFCO's study failed to meet their March 11, 2009 deadline for LAFCO's public hearing on this matter. Continued delays are unacceptable. YLWD agrees with this Finding The ongoing disagreement is primarily between MWDOC and various water agencies located in the southern portion of Orange County. While YLWD is not directly involved with these disagreements, YLWD is in agreement that resolution of these pending issues would benefit all water suppliers in Orange County. F.4: Orange County is uniquely fortunate to have a vast, high-quality, well- managed groundwater basin serving its north geographical area. However, in its south reaches, it has an equally large, high-growth area with virtually no available groundwater resources. (a). The difference in groundwater availability creates a "haves versus have-nots" situation that is conducive to inherent conflicts. (b). The difference in groundwater availability provides opportunities for responsible participants to develop and construct long-term solutions which will benefit the entire County. 8 YLWD agrees with Finding F.4(a) This recognition of water rights mirrors the manner in which Orange County was developed. Development in South County was enhanced by the south county water agencies ability to obtain imported supplies and develop extensive recycled water programs. YLWD disagree partially with Finding F.4(b) The finding is not clearly stated, but appears to include two implications that we believe require expanded information. The first implication is that local resources are not being fully developed in south Orange County. This is not correct. Critical groundwater, recycled water and ocean water supplies are all being developed in south Orange County. While the Grand Jury is correct in its supposition that there are opportunities presented in this issue as well as problems, the second implication here is that the OCWD Groundwater Basin has the capacity to serve the entire county. This is not correct. The groundwater basin is managed and utilized to provide water supplies to its overlying constituent landowners. The operable storage in the basin has been developed at substantial cost and is insufficient to meet all demands within the basin. Currently, the groundwater basin meets about 62% of the needs of the overlying agencies (historically, has ranged from 62% to 80%) and the groundwater cost is substantially less than the cost of imported water. If additional supplies can be developed, the % distribution to the overlying entities would increase. It will never reach 100% and so it can be concluded that the supplies from the basin must remain in the basin to benefit the basin constituents. This is also consistent with water rights law and the OCWD Act that formed OCWD and governs how it operates and manages the basin. Use of storage in the OCWD basin is allowed by agreement with OCWD. OCWD has entered into storage arrangements that allow MET to store up to 66,000 AF of imported water and to recall as much as 20,000 AF out of this same storage in any one year. This additional yield out of storage benefits everyone in Southern California. In addition, a February 2006 Emergency Services Program Agreement was developed with OCWD that allows emergency water supplies from the basin to be exchanged with south Orange County. This program is currently being used to allow exchange of water to south Orange County during emergency situations. Finally, development of projects by OCWD like GWRS benefit the south County area as well as all of southern California. Allowing access to the lower cost groundwater outside of the basin or allowing access to more storage by south Orange County would increase the cost to the basin agencies and put them at risk. Recommendations R.1: Each Orange County municipal planning agency, in cooperation with its respective water supply agency, should prepare for adoption by its city council, a dedicated Water Element to its General Plan in conjunction with a future update, not to exceed June 30, 2010. This document should include detailed implementation measures based on objective-based policies that match realistic projections of the County's future water supplies. These objectives, policies and 9 implementation measures should address imported supply constraints, including catastrophic outages and incorporate the realistic availability and timing of "new" water sources such as desalination, contaminated groundwater reclamation and surface water recycling. (Findings F1 a & b, and F2 a & b) This Recommendation will not be implemented This recommendation does not directly apply to YLWD since the municipal planning agency is the City of Yorba Linda. However, it should be noted that YLWD is the respective water agency and prepares an Urban Water Management Plan and updates it every five years. In addition, MET prepares an UWMP, its IRP and updates and its Water Supply Outlook periodically. Collectively, these documents provide what has been suggested. For new developments of greater than 500 units, a Water Supply Assessment must be completed - this is existing law. In addition, the water community measures performance (supplies vs demands) as we move forward and will be able to make adjustments in the process. R.2: Each Orange County retail and wholesale water agency should affirm its responsibility to develop new, additional, innovative public outreach programs, beyond water conservation and rationing programs, to expose the larger issues surrounding water supply constraints facing Orange County. The objective should be to connect the public with the problem. The outreach effort should entail a water emergency exercise that simulates a complete, sudden break in imported water deliveries. The exercise should be aimed directly at the public and enlist wide-spread public participation on a recurring basis beginning by June 30, 2010. This recommendation may be satisfied by a multi-agency exercise but the inability to coordinate such an event should not preclude the individual agency's responsibility. (Findings F2 a & b) This Recommendation has been implemented We believe the response to this question should be separated into two points, the first associated with the public outreach programs and the second with respect to emergency planning. Public Outreach While the recommendation has already been implemented, more innovative types of communications will be considered. The communications systems in place provide sufficient opportunities for the public to become informed. The description of these communication systems was previously provided. We can always do better and look for an expansion of opportunities. This is especially important as new Bond Issues come before the voters, as is anticipated heading into 2010. Emergency Planning "A complete sudden break in the imported supplies" was a component of the statewide Golden Guardian exercise in 2008 in which 20 of Orange County's water and wastewater utilities participated. This type of exercise or variations of it are repeated periodically. WEROC has expanded its preparedness efforts regarding water supply by initiating a new partnership with the Orange County Health Care Agency's Point of Dispensing 10 planning and exercises. WEROC is exploring ways to enhance public education of "water preparedness" through the 2009 Point of Dispensing exercises. However, the purpose of the exercises is for water and wastewater agencies to practice their procedures and communications systems to ensure that restoration of service will be in as short a period as is possible. These exercises are not for general consumers. When a large earthquake strikes, we know we cannot protect the entire water system and there will be outages. Our recommendation to consumers is to be prepared to go without water systems for 72 hours or longer. R.3: Each MWDOC member agency should reaffirm to LAFCO that it will assign the resources necessary to expediently resolve regional governance issues. While the subject study is being facilitated by LAFCO, the options are with the agencies to decide what is best for all. Once conclusions are reached, the parties need to agree quickly and, hopefully, unanimously to adopt a course of action. (Findings F3a,b&c) This Recommendation will be implemented. YLWD is committed to providing resources and the assistance necessary to resolve these pending governance issues. R.4: Each Orange County retail and wholesale water agency should affirm its commitment to a fair-share financial responsibility in completing the emergency water supply network for the entire County. The entire County should be prepared together for any conditions of drought, natural or human-caused disaster, or any other catastrophic disruption. WEROC should commence meetings of all parties, to facilitate consensus on an equitable funding/financing agreement. (Finding F4 a & b) This Recommendation is already being implemented The Water Emergency Response Organization of Orange County (WEROC) has been established to conduct emergency planning and preparedness at the regional level and response to disaster type events that impact the water and wastewater agencies within the County. WEROC participates with Regional and statewide forums as well. Each retailer also has plans and activities they conduct to be in a state of emergency preparedness. The retail agencies also work together to support one another through the network of emergency interties between agencies that allow water to be shuttled back and forth during emergency situations. WEROC's focus and the focus of emergency planning is to improve "system reliability", the ability to continue meeting demands when parts of the water system have suffered outages. This is distinguished against "supply" reliability which has to do with having supplies to deliver through the system. With respect to regional system reliability, Orange County has been successful in requesting MET to improve the reliability of the Diemer Filtration Plant in Yorba Linda. MET is in the process of making substantial investments to protect the plant from being damaged by seismic shaking. The Diemer Plant treats most all of the imported drinking water in Orange County. 11 We also believe there was confusion in the Grand Jury Report between a "catastrophic" impact of a Delta Failure, which is more of a long term water "supply" issue, and therefore different than a WEROC test exercise type of "system" event. Much work is underway on resolution of the Delta issues, but not through WEROC. WEROC does conduct test exercises in Orange County of the type noted by the Grand Jury. We would also like to note that responses to drought situations are included when YLWD completes the Urban Water Management Plan. Responses must include supply analyses for normal years, single dry years and multiple dry years and must also include drought response measures for up to a 50% level of shortage. The Urban Water Management Plans address many of the issues raised by the Grand Jury. Once again, thank you for the opportunity to respond to these Findings and Recommendations. Should you have any questions or need clarification of any of the aforementioned items, please feel free to contact Ken Vecchiarelli, General Manager of Yorba Linda Water District. Sincerely, John W. Summerfield President of the Board of Directors °eee$ee Cc: Orange County Grand Jury Board of Directors Ken Vecchiarelli, General Manager 12 September 1, 2009 Honorable Kim Dunning Presiding Judge of the Superior Court 700 Civic Center Drive West Santa Ana, CA 92701 Re: 2008/09 Orange County Grand Jury Report "Water Districts: A New Era in Public Involvement" Honorable Kim Dunning: Thank you for providing the Yorba Linda Water District ("YLWD") the opportunity to reply to the findings and recommendations set forth by the 2008/09 Grand Jury in the above referenced report. YLWD concurs that pending issues such as water shortages, rationing and the rising cost of water certainly thrusts water agencies into the center stage of the public's awareness. This new era of public involvement and communication has created new opportunities for public agencies to further explore innovative and creative solutions for conducting business, while soliciting public awareness, understanding and "buy-in". While Yorba Linda was specifically mentioned in the Grand Jury report in reference to the Freeway Complex Fire of 2008, the YLWD takes prides in its public openness and transparency. The District has taken great strides and made tremendous efforts to communicate and solicit feedback from the residents it serves. In support of this effort, the Board of Directors formed a Citizens Advisory Committee in March 2009 comprised of volunteer residents to meet and discuss pending YLWD issues and to make recommendations to the Board. Findings The following are YLWD's responses to the Grand Jury Findings F.1 -F.7: F.1: Water Districts' procedures for the selection of professional consultants' contracts are somewhat lax and in some instances non-existent, thereby creating a perception of bias in the selection of candidates, especially in the selection of board members from other member agencies to provide professional services. YLWD disagrees with this Finding YLWD has a resolution (Resolution No. 07-11) in place for the acquisition and procurement of goods and services. Section 4 of the resolution clearly defines procedures for engaging professional and non-professional services and contracts, including but not limited to legal services, engineering consultants and auditors. The policy establishes four approval stages, which define authorization levels and the 1 quantity of competitive bids or quotes required for the selection process. While this resolution was adopted in 2007, it is YLWD's intent to review, update and revise the policy with the assistance of the agency's financial auditor by November 2009. F.2: Some board members are conducting their professional practices with member agencies and use their elected positions to promote their competitiveness. YLWD disagrees with this Finding While four board members of YLWD are employed in the private sector, their activities and business relationships are not areas of concern for YLWD. Board members of YLWD generally err on the side of caution by recusing themselves from participating in discussions or abstaining from voting on action items or approving payment warrants if a direct or perceived conflict of interest potentially exists. F.3: Codes of ethics among districts are quite varied. Some are very comprehensive and some do not exist other than to reference state law. YLWD agrees with this Finding Each public agency is required to adopt a conflict-of-interest policy as required by the State and compliance established by the Orange County Board of Supervisors. An agency may optionally adopt an ethics policy above and beyond what is legally required. YLWD adopted a revised conflict-of-interest policy in July 2009 as requested and recommended by the Orange County Board of Supervisors. YLWD is in the process of developing and implementing a comprehensive and detailed ethics policy as a supplement to the conflict-of-interest policy. This effort should be completed with adoption anticipated by February 2010. F.4: Water board meetings are frequently scheduled for times that discourage public attendance. YLWD disagrees with this Finding Public attendance and participation is encouraged by YLWD. While YLWD regular board meetings are generally held the 2nd and 4th Thursday of every month at 8:30 a.m., YLWD has conducted, and continues to conduct evening meetings in cases where an increase of public attendance is anticipated. For example, following the Freeway Complex Fire event in 2008, YLWD conducted evening board meetings for seven months due to the temporary increase of public attendance. Soon thereafter, attendance subsided and board meetings reverted to mornings. Additionally, in September 2009, a public hearing for a general water rate increase has been set for an evening meeting due to an anticipated increased attendance. Every community is unique and diverse with their various issues and should be addressed and acknowledged accordingly. YLWD believes that low public attendance at board meetings sends the message of that the public is content with the day-to-day management of the agency. On occasion, however, issues or events arise that require YLWD to recognize those events as "the exception to the rule" and accommodate those events accordingly. 2 F5: An unusually high percentage of water board directors were originally appointed, not elected to their position. YLWD disagrees partially with this Finding The appointment process is in place to resolve vacancy issues that unexpectedly occur on a governing board and to avoid a costly election, which is estimated to range between $165,000 and $186,000 for YLWD according to the Orange County Registrar of Voters. The Grand Jury report viewed appointments for some agencies as "managing the process". YLWD disagrees with this characterization. If a board member is replaced by means of the appointment process, it is the very same political body, elected by the people, that makes the appointment. Board members are elected by the people to represent and make decisions on their behalf with respect to agency business. The election process provides an opportunity for the people to retain or to elect another candidate to replace the appointed representative during a following election. Furthermore, the election process also provides an opportunity to elect another candidate other than the board members who made the initial appointment of another board member. And finally, the system also allows and provides for a recall election of any board member prior to a general election if the residents are unhappy with any or all of their representatives. Since 1958, 25 elections have taken place. Of the 20 board members who have served since 1958, nine were appointed. F.6: Some board members hold multiple elected positions that under certain circumstances could create an appearance of a conflict of interest unless the person recuses himself on an issue-by-issue basis. YLWD agrees partially with this Finding While no board member of YLWD holds multiple elected positions, YLWD agrees that the appearance and perception of a conflict may exist if multiple elected offices were held. It is in this aspect that YLWD agrees with the Finding. In September 2009, YLWD will be adopting and implementing an ethics policy that will address, among other items the holding of multiple offices and the potential incompatibilities thereof. F.7: There are no time limits for how long individuals can serve on any water district board in Orange County. YLWD agrees with this Finding Tthere are no term limits in existence for YLWD board members. Generally, if the public is content with their elected representatives and the manner in which the agency is managed, board members are typically re-elected by their constituents or are un- opposed during the election process. During the 25 elections since 1958, six did not occur for YLWD since the board members subject to re-election were un-opposed. As a result, these same board members were re-appointed to the Board for another term. 3 Recommendations The following are YLWD's responses to the Grand Jury Recommendations R.1 - R.6: R.1: In addition to the laws set forth in the Political Reform Act of 1974 and Government Code section 1090, the water districts should promulgate rules requiring professionals seated on their boards of directors to formally disclose to their organizations any contracts they are pursuing or have attained with member agencies. The water districts should also adopt more encompassing rules regarding the selection of professional consultants. (F. 1, F.2) The Recommendation has not yet been fully implemented, but will be implemented in the future. YLWD currently has in place a conflict-of-interest policy, which was previously updated in July 2009 per a recommendation set forth by the Orange County Board of Supervisors. By September 2009, YLWD intends to adopt and implement a comprehensive ethics policy. By November 2009, a modified and updated procurement policy is slated for adoption that will include procedures for acquiring goods and services in addition to professional services. R.2: Each water district should develop a specific code of ethics, hold training sessions and monitor its enforcement. (F.3) The Recommendation has not yet been fully implemented, but will be implemented in the future. YLWD intends to adopt and implement a comprehensive ethics policy by no later than February 2010. Newly elected board members are required to attend ethics training within six months of beginning their term and existing board members are required to attend ethics training every two years. This is the current practice of YLWD. R.3: Water board meetings need to be scheduled at times that would generate maximum public attendance. (F.4) The Recommendation has been implemented. As previously discussed in F.4, YLWD modifies its scheduled meeting times to evenings when increased public attendance is anticipated due to an issue or unexpected event. During uneventful periods of time, attendance at public meetings is generally very low regardless of the meeting time. YLWD will continue to adjust meeting times as the need arises accordingly. R.4: Each water district should choose to hold elections to fill board vacancies. The appointment process should be used only in exceptional circumstances. (F.5) The Recommendation will not be implemented because it is not warranted and unreasonable. 4 As previously discussed in F.5, YLWD believes the appointment process is effective and continues to provide residents the ability to re-elect or not re-elect an appointee, or a board member(s) who made the appointment, at an upcoming election. The recommendation is further declared to be unreasonable due to the cost of funding a special election, which ranges anywhere from $165,000 to $186,000 for YLWD. YLWD believes a special election should be considered only in exceptional circumstances. R.5: Each water district should promulgate rules requiring each director to inform the other board members of any other offices including seats on boards of member agencies that he or she holds. (F. 6) R.5a: Water districts should consult their legal counsel to advise them whether there exists an incompatibility of offices when a board member holds multiple offices at the same time. (F. 6) The Recommendation has not yet been implemented, but will be implemented in the future. In September 2009, YLWD will be adopting and implementing an ethics policy which will address the holding of multiple offices, including offices of member agencies, and the potential incompatibilities thereof. The policy will contain provisions for consulting with legal counsel to render a legal opinion if a potential incompatibility of office exists. R.6.: Water districts should adopt self-imposed term limits for their members, not to exceed three terms of service. (F.7) The Recommendation will not be implemented because it is not warranted and unreasonable. Existing law Gov. Code 53077 requires that the voters approve any proposal or initiative that imposes term limits on their elected representatives. Therefore, the law does not permit water districts to adopt self-imposed term limits for their members. Once again, thank you for the opportunity to respond to these Findings and Recommendations. Should you have any questions or need clarification of any of the aforementioned items, please contact Ken Vecchiarelli, General Manager of the Yorba Linda Water District. Sincerely, John W. Summerfield President of the Board of Directors Cc: Orange County Grand Jury Board of Directors Ken Vecchiarelli, General Manager 5 ITEM NO. 3.1 AGENDA REPORT Meeting Date: August 17, 2009 Subject: Request for Letter of Support for AB 1506 ATTACHMENTS: AB1506 Memo.pdf AB 1506 Memo Backup Material From: Sanchez, Alex [mailto:Alex.Sanchez@asm.ca.gov] Sent: Tuesday, August 11, 2009 12:30 PM To: Ken Vecchiarelli Subject: Official Request for Support AB 1506 (Anderson) .rs ~5`Y2VIif i~il ~Pd~JT`. I Ii+LCr'l (7 45 EL CA.1'Jh L ~~fi2p r Ax01G 3711 I2 I Fix 0"y~ a~ pdCP JOELANDERSON ?S;Er,AB1-Yhtft.1PER. SE'.'ENTY-SE.'EIVIHLI. TRIGT Memo To: Director Richard Collett From: Assemblyman Joel Anderson Date: August 11, 2009 Re: Assembly Bill 1506 AB 1506 -Request for Letter of Support AB 1506 would allow recipients of state-issued IOUs to endorse and return the IOUs to the state as payment for any obligations they owe to the state (state taxes, DMV fees, public university tuition, etc.). For example, if you are a government agency and you receive an IOU for $100,000 from the state, and you also owe the state $1,000, in payroll taxes, you may send the IOU to the Franchise Tax Board as payment for your tax obligation. State Controller Jonathan Chiang has recently sent a letter of support for AB 1506, as IOU's continue to be issued, despite the passage of a state budget. Attached for your review are several background articles, a white paper and a sample letter of support. AB 1506 is headed for a crucial vote in the Assembly Appropriations Committee on August 29th. It is critical to the success of the bill that the committee members know you are a supporter of AB 1506 before this hearing Letters may be faxed, emailed or mailed to my office. Thank you for your consideration. Fact Sheet http://repalert/aresites/member/77/pdf/FactSheet AB1506 v4.pdf Background Articles http://arc.asm.ca.gov/member/77/Qdf/AB1 506Backg rou ndArticles. pdf Sample Letter of Support http://arc.asm.ca.gov/member/77/pdf/AB1506supportletterFINAL V1 090526.pdf June 22, 2009 To: Assemblyman Joel Anderson From: Re: AB 1506 - Support AB 1506 fixes a serious flaw in the state's IOU system. The concept is simple: if an individual or company has money due them from the state, the entity may use that credit towards any payment owed to the state. In the event of a fiscal crisis, your bill would save many businesses and individuals from severe financial hardships by stopping the State from charging taxes and fees while withholding payments. Under current state law, the public is required to accept registered warrants, or IOUs, under certain emergency circumstances. However, the state itself will not accept such securities as payment. This is a double standard that harms those hardworking public employees, taxpayers and contracted businesses caught in the middle. Not only does receiving an IOU create serious short term cash-flow problems, it also places an onerous tax burden on many individuals and companies. While issuing IOUs may become a painful necessity at some point, the problem should not be exacerbated by requiring taxes to be paid to the state on income that the state is simultaneously withholding. AB1506 alleviates these problems by requiring the state to accept its own credit as payment for taxes and fees. With continuing economic uncertainty and erosion of state revenues, it is important for Californians the state have a fair system of payment of its debts and obligations. I write in support of AB 1506. Sincerely, XXXXXXX PO. BOX 94284.9 500 FESLER STREET SUITE 201 SACRAMENTO, CA 94249-0077 EL CAJON, CA 92020 916) 319-2077 19) 441-222 1ifornikY ry f"Frgl-S I f nrr FAX (6(619) 4413 FAX (916) 319-22177 v~C-f V 4 ~1 4Ll 7.i C LL (J X 2327 1 0.1-11,11 JOEL ANDERSON ASSEMBLYMEMBER, SEVENTY-SEVENTH DISTRICT FACT SHEET Assembly Bill 1506 - ISSUANCE OF REGISTERED WARRANTS SUMMARY SOLUTION Assembly Bill 1506 is a bi-partisan, time-sensitive Assembly Bill 1506 fixes that flaw in the system by bill that would direct a state agency to accept, from making IOUs useful. It simply follows-up the code any entity, a registered warrant - commonly known section mentioned above with the guarantee that a as an IOU - endorsed by that payee, at full face state agency shall accept from any entity a registered value, for the payment of any obligations owed by warrant endorsed by that payee, at full face value, that entity to that state agency. Survival of services for the payment of any obligations owed by that and jobs is at stake; the state should accept its own entity to that state agency. This is a fair allowance in IOU. order that citizens may make usual and necessary ISSUE payments to the state, such as DMV registration, tax payments, and school tuition. As the Arc of On June 24, 2009, the Sacramento Bee again California advocates in support of the bill, "AB 1506 reported that the state's fiscal situation was alleviates these problems by requiring the state to desperate. "State controller John Chiang warned accept its own credit." Why should ordinary today that if legislators and Gov. Arnold Californians' efforts to take care of their payments Schwarzenegger fail to come up with abudget- on time be refused, denying citizens' option to use balancing package in the next week, he would begin the very monetary instrument their state saw fit to paying California's bills with IOUs on July 2." Since issue to them? And if the state won't accept its own then, the state has dispensed 101,930 IOUs, an credit, why should anyone else? equivalent of $389 million in vital payments that is effectively being denied to service providers, non- SUPPORT profit organizations, and taxpayers. • California State Controller John Chiang Existing law already allows the state to distribute • The Arc of California IOUs. According to Government Code section • California Association of Health Facilities 17203, "Such registered warrants are acceptable and • San Diego County Medical Society may be used as security for the faithful performance • St. Madeleine Sophie's Center of any public or private trust or obligation or for the • San Diego Regional Center performance of any act, including the use of such • Noah Homes registered warrants by banks and savings and loan • The Village at Walpert Center associations as security for deposits of funds of any • Home of Guiding Hands county, municipal or public corporation, district, • Santee School District political subdivision, or state agency." This reminds • Julian Community Services District us of Wimpy's famous line, "I'd gladly pay you • Lakeside Union School District Tuesday for a hamburger today." So, the inequity • City of Oceanside then is revealed by the peoples' inability to use those • Otay Water District instruments in a practical way. • Southwest California Legislative Council • Helix Water District Board of Directors August 11. 2009 • County of San Diego Board of Supervisors • Chief Executive Officer and President Valerie • San Diego Regional Chamber of Commerce Harrison, Rancho-San Diego-Jamul Chamber of • Oceanside Chamber of Commerce Commerce • San Diego East County Chamber of Commerce • Administrator Kevin Miller, Foothills Christian • Borrego Springs Chamber of Commerce Church • San Marcos Chamber of Commerce • Yehudi Gaffen, Founder of Gafcon • San Diego North Chamber of Commerce • President Thomas Guth, RGP Prosthetic Research • People's Advocate, Inc. Center • Waste Management • Executive Vice President Stephen Zolezzi, Food & • Associated General Contractors of America - San Beverage Association of San Diego Diego Chapter • Chief Executive Officer Etienne Runge, R2A • Associated Builders and Contractors - San Diego Architecture Chapter • President Joe Mackey, XL Staffing, Inc. • Associated Builders and Contractors of California • Bruce Mayclin, Vanguard Cleaning Systems, Inc. • Pacific Association of Building Service • President Gloria Freeman, Staff USA, Inc. Contractors • President Ginter Hitzkc, Hitzke Development • Independent Maintenance Contractors Association Corporation • Bill Leonard, State Board of Equalization • Vice President Jeanne Phillips, Sundance • Supervisor Dianne Jacob, County of San Diego Corporate Supply, Inc. • Supervisor Bill Horn, County of San Diego • Owners Oscar & Olga Worm, West Coast • Supervisor Ron Roberts, County of San Dicgo Barbecue and Catering • Mayor Bud Lewis, City of Carlsbad • President Julie Brown, San Diego Insurance • Vice Mayor Brian Jones, City of Santee Staffing • Mayor Mark Nielsen, City of San Juan Capistrano • President Teresa Johnson, Manos and Associates, • President Robert Shield, Grossmont Union High Inc. School District • Chief Operating Officer Thomas Tassinari, • Christopher Ahrens, MiraCosta College Student Synergy Solutions Ambassador • President Shannon Erdell, TLC Staffing • Councilmember Ernest Ewin, City of La Mesa • Chief Executive Officer Judith R. Lawton, TLC • Councilmember David W Roberts, City of Solana Staffing Beach FURTHER INFORMATION • President Richard S. Fiore, Moulton Niguel Water District David Yow, by phone at (916) 319-2077 or email at • Councilmember Mary England, City of Lemon clnvid.i,otv@nsm.cn.;ov. Grove • Mayor Mark Lewis, City of El Cajon • Superintendent Janice Cook, Cajon Valley Union School District • Boardmember Karric Scully Johnston, San Miguel Fire District • Superintendent Ernie Anastos, Lemon Grove School District • President David Kulchin, Leucadia Wastewater District • Councilmember Mark Packard, City of Carlsbad • President James Sticringer, Grossmont Healthcare District • Assistant Superintendent of Business Services Mays Kakish, Beaumont Unified School District • Mayor Jim Desmond, City of San Marcos • President James Carney, Palo Verde Healthcare District Board of Directors August 11. 2009 ITEM NO. 3.5 AGENDA REPORT Meeting Date: August 17, 2009 Subject: Reports on Legislative Activities - Sacramento Advocates ATTACHMENTS: SA - July Activity Report.doc SA - July Activity Report Report(s) SA- Activity Report_August.pdf yA - August Activity Report Report(s) Barry S. Brokaw Donne Brownsey Sacramento Advocates, Inc. Cassie Gilson A California based Public Affairs and Governmental Relations Firm Sen. Dan Boatwright (Ret.) General Counsel 1215 K Street, Suite 2030 ❑ Sacramento, CA 95814 Phone (916) 448-1222 ❑ Fax (916) 448-1121 Sen. Mike Machado (Ret.) Consultant To: YLWD Board of Directors From: Barry Brokaw Re: State Capitol Update Date: July 14, 2009 Overview State Budget Issues Dominate Sacramento Discussion; Water Policy to Follow As of this writing, the state and its current $26.3 billion deficit remains unresolved. Meanwhile, IOUs from the cash-strapped state continue to pile up in mailboxes across the state: As of July 13, 2009, California had issued 129,786 IOUs this month, totaling $435,706,583.33, to vendors, taxpayers awaiting refunds, local governments and others, according to State Controller John Chiang. The Controller just closed the books on 2008-09 and reported that during the past year, the state received $85.2 billion in general fund revenue - including $43.7 billion in personal income taxes. $23.7 billion in sales taxes and $12.3 billion in corporate income taxes - and spent $98.2 billion. That $85.2 billion is $11.2 billion less than the state received from those same sources in 2007- 08, thanks to the recession, with personal income taxes accounting for the entire net decline. Even with sales and income tax rate hikes enacted in February, general fund revenue is expected to be - at best - flat in 2009-10. The current official estimate is $85.8 billion, but the trend is downward and no one would be surprised if revenue dropped to as low as $80 billion. Put those numbers together and 2009-10 revenue will fall at least $15 billion short of financing the workload budget. Throw in the leftover shortfall from 2008-09 and add a modest reserve, and the deficit facing the state is more than $26 billion. Schwarzenegger and legislators appear to be wrangling over spending cuts in the $12 billion to $16 billion range, with the remainder of the "solutions" to be various forms of borrowing, deferrals and so forth. Even though the Governor insists "this is the year we have to stop promising people things we can't deliver," whatever emerges from his discussions with legislators from both parties will fall well short of erasing the entire deficit. In fact, the non-partisan Legislative Analyst is projecting annual budget deficits in the $25 The state's economy shows no signs of hitting bottom, much less rebounding, and the latest tax increases and many of the spending cuts are temporary, effective for no more than a couple of years. Borrowing From Local Governments Still on the bargaining table is the Governor's proposal to borrow $1.98 billion from local governments through the suspension of Proposition IA (2004). The suspension, which requires legislation, allows the state to divert to schools up to 8% of property tax revenues of cities, counties and special districts. Repayment, with interest, must be made within three years. The Governor is also proposing legislation to authorize a joint powers authority to facilitate local government borrowing against the state's repayment promise. Essentially, local governments would securitize the "loan" to the State, allowing bonds to be sold to investors to replace the borrowed monies. Still in the Governor's proposal at this time: Counties-The Administration's Prop IA suspension shifts $960 million from the counties (in contrast, the 2004-05 and 2005-06 property tax shifts redirected $350 million each year from counties). Cities-The Administration's Prop IA suspension shifts $692 million from the cities (in 2004-05 and 2005-06, the state shifted $350 million each year from the cities). Special Districts-The Governor proposes to suspend Prop IA and shift to K-14 education in 2009- 10 a total of 8% of the property taxes received by each special district, city and county. Under this formula, $330 million would be shifted from Special Districts (in 2004-05 and 2005-06, $350 million in special district property taxes was shifted to K-14 education. Specifically, enterprise districts shifted 40% of their property taxes and non-enterprise districts shifted up to 10%) There is some additional concern that the state could borrow more than one-quarter of the amount from waste and water enterprise districts and borrow less from non-enterprise districts with less flexibility, as the Office of the Legislative Analyst is suggesting. Mai or Water Policy Next on Legislative Agenda It appears that a significant effort will be launched shortly to address the future of the Sacramento/San Joaquin River Delta in moving water from Northern to Southern California. Five bills have been stripped down to intent language to address these issues (AB 49, Feuer, dealing with water conservation requirements; AB 39 Huffman which will deal with the Delta Plan and the use of Natural Community Conservation Plans; SB 12, Simitian, Delta Governance and alternative conveyance mechanisms; SB 458, Wolk, Delta Conservancy and the Delta Protections Commission; and SB 229, Pavley, early water actions needed before adoption of a final Delta plan. Missing at this point in time is the above ground storage component, which Republicans consider the most important part of an eventual package. Concerns abound over the construction of a massive Peripheral Canal to route water for 50 miles around the Delta, and the costs associated with General Obligation Bonds to finance storage facilities. The bills will be sent to a joint Senate-Assembly Conference Committee which will hold hearings sometime this summer on the thus-far unreleased plans. Action could commence swiftly upon passage of the budget "fix." Legislation of Interest We continue to track the following bills: AB 28 (Jeffries) Natural gas engines: water movement: emissions limitation requirements. (A-04/13/2009 html pdf) Summary: Existing law imposes various limitations on emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources. Existing law generally designates the State Air Resources Board as the state agency with the primary responsibility for the control of vehicular air pollution, and air pollution control districts and air quality management districts with the primary responsibility for the control of air pollution from all sources other than vehicular sources. This bill would require any requirement imposed by an air pollution control district, an air quality management district, or other local agency or local regulatory body relating to emissions limitations on, or imposing monitoring, testing, inspection, maintenance, or reporting requirements relating to emissions caused by, the use of a natural gas engine, as defined, to comply with prescribed requirements . Note: This bill would be very helpful for special districts in the South Coast Air Quality Management District, but there was massive opposition to this regulatory carve out by all the major air quality districts in Ca. The bill was defeated on a party line vote, but was granted reconsideration. Air quality regulatory carve out bills always face a tough time from this Legislature. DEAD FOR THE YEAR. Status: 06/08/2009-Failed Deadline pursuant to Rule 61(a)(8). (Last location was NAT. RES. on 5/4/2009) AB 39 (Huffman) Sacramento-San Joaquin Delta. (A-07/09/2009 html Pdf) Summary: Existing law requires various state agencies to carry out programs, projects, and activities on behalf of the Sacramento-San Joaquin Delta and Suisun Marsh. Existing law requires the Secretary of the Natural Resources Agency to convene a committee to develop and submit to the Governor and the Legislature, on or before December 31, 2008, a Strategic Vision for a Sustainable Sacramento-San Joaquin Delta with specified components. This bill would state the intent of the Legislature to enact legislation to establish a Sacramento-San Joaquin Delta Plan. Note: A bill for the Water Conference Committee Status: 07/13/2009-In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 15 pursuant to Assembly Rule 77. AB 49 (Feuer) Water conservation. (A-07/09/2009 html pdf) Summary: Existing law requires the Department of Water Resources to undertake or administer various programs related to water conservation. This bill would state the intent of the Legislature to enact legislation to establish a 20% water efficiency requirement for the year 2020 for agricultural and urban water users. Note: A bill for the water conference committee. Status: 07/13/2009-In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 15 pursuant to Assembly Rule 77. AB 450 (De La Torre) Recycled water: oil refineries. (A-04/21/2009 html Pdf) Summary: Existing law declares that the use of potable domestic water for various nonpotable uses is a waste or an unreasonable use of water, and prohibits a person or public agency from using water from any source of quality suitable for potable domestic use for various nonpotable purposes, including cemeteries, golf courses, parks, highway landscaped areas, and industrial and irrigation uses, if suitable recycled water is available. This bill would declare that the use of potable domestic water for oil refineries is a waste or unreasonable use of water, if certain requirements are met. The bill would additionally prohibit a person or public agency from using potable water for oil refinery purposes, if certain requirements are met. The bill would state that it is the intent of the Legislature to provide incentives to facilitate compliance with these provisions. These provisions would become operative on January 1, 2020. Note: Do we have any oil refineries within the service area, and if so, do they receive potable water? DEAD FOR THE YEAR. Status: 06/02/2009-Failed Deadline pursuant to Rule 61(a)(5). (Last location was APPR. on 05/28/2009) AB 969 (Calderon, Charles) Recycled water. (I-02/26/2009 html Pdf) Summary: Existing law, the Water Recycling Act of 1991, establishes a statewide goal to recycle a total of 700,000 acre-feet of water per year by the year 2000 and 1,000,000 acre-feet of water per year by the year 2010. The act requires, to the extent that specified funds are made available, the Department of Water Resources to identify and report to the Legislature on opportunities for increasing the use of recycled water and constraints and impediments to increasing the use of recycled water. The act requires the department to convene a task force, known as the 2002 Recycled Water Task Force, to advise the department in implementing the report requirement. Existing law requires the department and the task force to report to the Legislature no later than July 1, 2003. This bill would repeal the report and task force requirements. The bill would change the statewide goal for recycled water to an unspecified number of acre-feet of water per year by the year 2020. The bill also would make changes to findings and declarations under the act. Note: This bill was a spot bill. It never developed. DEAD FOR THE YEAR. Status: 05/01/2009-Failed Deadline pursuant to Rule 61(a)(2). (Last location was W.,P. & W. on 03/26/2009) AB 1187 (Huffman) Safe, Clean, Reliable Drinking Water Supply Act of 2010. (I- 02/27/2009 html pdf) Summary: Under existing law, various measures have been approved by the voters to provide funds for water protection, facilities, and programs. This bill would enact the Safe, Clean, Reliable Drinking Water Supply Act of 2010 which, if approved by the voters, would authorize, for the purposes of financing specified water supply reliability and water source protection programs, the issuance of bonds in the amount of $10,035,000,000 pursuant to the State General Obligation Bond Law. This bill contains other existing laws. Note: A water bond proposal coming from the chairman of the Assembly Water Committee. Chairman Huffman was formerly a staff lawyer with the Natural Resources Defense Council. DEAD FOR THE YEAR. Status: 05/01/2009-Failed Deadline pursuant to Rule 61(a)(2). (Last location was W.,P. & W. on 03/26/2009) AB 1366 (Feuer) Residential self-regenerating water softeners. (A-07/13/2009 html pdf) Summary: Existing law requires the State Water Resources Control Board to formulate and adopt state policy for water quality control. California regional water quality control boards are required to establish water quality objectives in water quality control plans. Under existing law, a local agency, by ordinance, may limit the availability, or prohibit the installation, of residential water softening or conditioning appliances that discharge to the community sewer system if the local agency makes certain findings and includes them in the ordinance. This bill would authorize any local agency that owns or operates a community sewer system or water recycling facility within specified areas of the state to take action, by ordinance, to control salinity inputs from residential self-regenerating water softeners to protect the quality of the waters of the state, if the appropriate regional board makes a finding that the control of residential salinity input will contribute to the achievement of water quality objectives. The bill would state related findings and declarations of the Legislature, including findings and declarations concerning the need for special legislation. Note: The regulation of water softeners is back before the Legislature again this year. Status: 07/13/2009-Read second time, amended, and re-referred to Com. on APPR AB 1465 (Hill) Urban water management planning. (A-06/30/2009 html Pdf) Summary: Existing law requires every urban water supplier to prepare and adopt an urban water management plan, in accordance with specified requirements, for submission to the Department of Water Resources and other entities. An urban water supplier is required to provide information relating to the supplier's water demand management measures. This bill would deem water suppliers that are members of the council and comply with the "Memorandum of Understanding Regarding Urban Water Conservation in California," dated December 10, 2008, as it may be amended, to be in compliance with the requirement to describe the supplier's water demand management measures in its urban water management plan. This bill contains other existing laws. Note: This is an ACWA supported measure. Status: 07/07/2009-From committee: Do pass, and re-refer to Com. on APPR with recommendation: To Consent Calendar. Re-referred. (Ayes 10. Noes 0.) (July 6). SB 12 (Simitian) Sacramento-San Joaquin Delta Stewardship Council. (A- 07/09/2009 html pdf) Summary: Existing law requires various state agencies to administer programs relating to water supply, water quality, and flood management in the Sacramento-San Joaquin Delta. The Johnston- Baker-Andal-Boatwright Delta Protection Act of 1992 creates the Delta Protection Commission and requires the commission to prepare and adopt a comprehensive long-term resource management plan for specified lands within the Sacramento-San Joaquin Delta. E existing law requires the Secretary of the Resources Agency to convene a committee to develop and submit to the Governor and the Legislature, on or before December 31, 2008, recommendations for implementing a specified strategic plan relating to the sustainable management of the Delta. This bill would declare legislative intent to enact legislation to establish the Sacramento-San Joaquin Delta Stewardship Council. Note: Another water conference committee bill. The original version authorized a Peripheral Canal around the Delta. Status: 07/13/2009-In Senate. To unfinished business. SB 229 (Pavley) Water: Sacramento-San Joaquin Delta. (A-07/09/2009 html Pdf) Summary: Existing law requires the Secretary of the Resources Agency to convene a committee to develop and submit to the Governor and the Legislature, on or before December 31, 2008, recommendations for implementing a specified strategic plan relating to the sustainable management of the Sacramento-San Joaquin Delta. This bill would declare legislative intent to enact legislation to authorize actions to be undertaken prior to the adoption of a comprehensive Sacramento-San Joaquin Delta Plan. Note: A water conference committee vehicle. Status: 07/13/2009-In Senate. To unfinished business. SB 301 (Florez) Water Supply Reliability and Ecosystem Recovery and Restoration Act of 2009. (I-02/25/2009 html pdf) Summary: Under existing law, various measures have been approved by the voters to provide funds for water protection, facilities, and programs. This bill would enact the Water Supply Reliability and Ecosystem Recovery and Restoration Act of 2009, which, if approved by the voters, would authorize, for the purposes of financing specified water supply reliability and ecosystem recovery and restoration programs, the issuance of bonds in the amount of $15,000,000,000 pursuant to the State General Obligation Bond Law. The bill would provide for submission of the bond act to the voters at the next statewide election. This bill contains other related provisions. Note: This is a proposed $15 billion water bond (the most expensive offered this year), by the Senate Majority Leader, who represents Fresno and Kern Counties. His problem is the Senate President Pro Tempore, the number one Senator, also has a water bond proposal. DEAD FOR THE YEAR. Status: 05/01/2009-Failed Deadline pursuant to Rule 61(a)(2). (Last location was N.R. & W. on 03/09/2009) SB 371 (Cogdill) Safe, Clean, Reliable Drinking Water Supply Act of 2009. (I- 02/25/2009 html pdf) Summary: Under existing law, various measures have been approved by the voters to provide funds for water protection, facilities, and programs. This bill would enact the Safe, Clean, Reliable Drinking Water Supply Act of 2009 which, if approved by the voters, would authorize, for the purposes of financing specified water supply reliability and water source protection programs, the issuance of bonds in the amount of $9,980,000,000 pursuant to the State General Obligation Bond Law. The bill would provide for the submission of the bond act to the voters at the next statewide election. This bill contains other related provisions. Note: The former Senate Republican Leader, who was ousted by GOP Senators as part of the budget drama, has been the lead Senate Republican on the water bond/storage effort. DEAD FOR THE YEAR. Status: 05/01/2009-Failed Deadline pursuant to Rule 61(a)(2). (Last location was N.R. & W. on 03/09/2009) SB 456 (Wolk) Safe, Clean, Reliable Drinking Water Supply Act of 2010. (I- 02/26/2009 html pdf) Summary: Under existing law, various measures have been approved by the voters to provide funds for water protection, facilities, and programs. This bill would enact the Safe, Clean, Reliable Drinking Water Supply Act of 2010 which, if approved by the voters, would authorize, for the purposes of financing specified water supply reliability and water source protection programs, the issuance of bonds in the amount of $9,805,000,000 pursuant to the State General Obligation Bond Law. This bill contains other related provisions. Note: Another water bond bill by a Senator representing the San Joaquin River Delta. DEAD FOR THE YEAR. Status: 05/01/2009-Failed Deadline pursuant to Rule 61(a)(3). (Last location was N.R. & W. on 03/12/2009) SB 565 (Pavley) Water recycling. (A-06/02/2009 html pdf) Summary: Existing law establishes the State Water Resources Control Board and the California regional water quality control boards as the principal state agencies with authority over matters relating to water quality. Existing law requires specified persons who discharge waste, as defined, in a manner that could affect the quality of the waters of the state, to pay an annual fee to the state board according to a fee schedule established by the board. This bill would require the board, in consultation with the Department of Water Resources and the State Department of Public Health, to develop a plan to ensure that at least 50% of wastewater that is annually discharged into the ocean, as of the year 2009, is recycled and put to beneficial use by the year 2030. The bill would prescribe various requirements with respect to that plan. The bill would require the board to impose a fee on specified persons discharging wastewater into the ocean, the San Francisco Bay, or any other enclosed bay in the state, and would require that fee to be deposited into the Ocean Discharge Recycling Fund, which the bill would establish. The bill would authorize the board to expend the moneys in that fund, upon appropriation by the Legislature, for the purposes of carrying out the wastewater recycling plan. Note: This bill would charge a fee to a person who is discharging waste water into the ocean. Status: 06/30/2009-Set, first hearing. Hearing canceled at the request of author. SB 735 (Steinberg) Safe, Clean, and Reliable Drinking Water Supply Act of 2010. (I-02/27/2009 html pdf) Summary: Under existing law, various measures have been approved by the voters to provide funds for water supply and protection facilities and programs. This bill would enact the Safe, Clean, and Reliable Drinking Water Supply Act of 2010, which, if approved by the voters, would authorize the issuance of bonds in the amount of $9,785,000,000 pursuant to the State General Obligation Bond Law to finance a water supply reliability and water source protection program. This bill contains other related provisions. Note: The Senate Leader, President Pro Tempore Steinberg, is authoring what will be the lead water bond bill. He has committed to work closely with the Governor on this proposal. DEAD FOR THE YEAR. Status: 05/01/2009-Failed Deadline pursuant to Rule 61(a)(2). (Last location was N.R. & W. on 03/19/2009) Barry S. Brokaw Donne Brownsey° Sacramento Advocates, Inc. Cassie Gilson A California based Public Affairs and Governmental Relations Firm Sen. Dan Boatwright (Ret.) General Counsel 1215 K Street> Suite 2030 El Sacramento> CA 95814 Phone (916) 448-1222 ❑ Fax (916) 448-1121 Sen. Mike Machado (Ret.) Consultant To: YLWD Board of Directors From: Barry Brokaw Re: State Capitol Update Date: August 14, 2009 Overview State Budget Issues Linur, Water Policv Moves to Forefront The latest saga in the ongoing state budget crisis, which is expected to dog the state for the next few years (as programmatic spending continues to exceed revenue intake) has largely passed for now, with the Governor signing a revision of the 2009-2010 state General Fund budget totaling $84.8 billion (down from the $96.4 billion budget in 2007-08. The Governor and the Legislature are scrapping over late vetoes of about $600 million of additional health and human services programs and an unallocated reduction of $1.2 billion from the Department of Corrections. The Senate leader has filed a lawsuit challenging the legality of the health program vetoes and legislators will have to specify the corrections cuts in the last four weeks of the regular legislative session. Session is scheduled to adjourn for the year on September 11, but a special session has been called by the Governor to begin September 17 to consider tax reform issues. A water special session could be added if the Legislature does not conclude action on water policy issues. Many people expect the Legislature to be back in Sacramento later this fall to make further downward adjustments in the state budget, as revenues are expected to continue to slide. Borrowing From Local Governments The Governor and Le-islators did borrow $1.98 billion from counties through the suspension of Proposition IA (2004). Legislation was passed to allow local government borrowing against the state's repayment promise. Essentially, local governments would securitize the "loan" to the State, allowing bonds to be sold to investors to replace the borrowed monies. Major Water Policv Next on Legislative Aunda On August 18, joint committee hearings of the Senate and Assembly water policy committees will commence addressing the future of the Sacramento/San Joaquin River Delta and in moving water from Northern to Southern California. Five bills have been stripped down to intent language to address these issues (AB 49, Feuer, dealing with water conservation requirements; AB 39 Huffman which will deal with the Delta Plan and the use of Natural Community Conservation Plans; SB 12, Simitian, Delta Governance and alternative conveyance mechanisms; SB 458, Wolk, Delta Conservancy and the Delta Protections Commission, and SB 229, Pavley, early water actions needed before adoption of a final Delta plan. These bills are all being heard in a new, "pre-print form," copies which are attached. The "plan" is for these pre-print bills to be subjected to three hearings over the next two weeks, after the Legislature resumes its session from the summer break. On week three, a six-mernber, two- house conference committee will meet to produce a conference committee report blending the separate bill components into one or more documents, which would have to be approved by both houses with a simple majority vote. While the need for more water is great, there will be substantial fees required of all Californians to pay for a new water conveyance facility to take water around the Delta. Estimates of the cost run anywhere from $7 billion to over $20 billion. A non-elected, seven- member Delta Protection Council would be empowered to adopt policy recommendations and financing plans. This package will be very controversial. Missing at this point in time is the key need in the eyes of many - an above ground storage component, which Republicans consider the most important part of an eventual package. Democrats are reluctant to add an additional $10-12 billion General Obligation Bond for the above-ground storage, adding another $700 million per year in interest payments to the General Fund for bonds already outstanding (Californians are paying the debt on $69 billion in bonds currently). Senate and Assembly Democratic leaders are reluctant to entertain the water storage discussion if the Governor does not restore the $600 million in health and human services budget vetoes. Legislation of Interest What follows is a list of the issue areas to be covered by authors of the water package that will be under review the next three weeks. I have attached separately the text of the pre-print version of these bills as they currently stand. The Wolk bill, currently Senate Pre-Print 3, is being amended as I write this report, but the new version, SB 4 Preprint, will not be materially different. 2009 California Delta-Water Bill Package Summary Delta Conservancv and Delta Protection Commission (Wolk) • Delta Conservancy - creation & authority • Delta Protection Commission - modifications Delta Governance (Simitian) • General Provisions - policies & definitions (Div. 35, Part 1) • Early Actions - before adoption of Delta Plan (Div. 35, Part 2) • Delta Stewardship Council - creation & authority (Div. 35, Part 3) • Delta Water Master - creation & authority • Delta Independent Science Board - creation & authority • Delta Finance (Div. 35, Part 5) The Delta Plan (Huffman) • General Provisions - policies & definitions (Div. 35, Part 1) • Early Actions - before adoption of Delta Plan (Div. 35, Part 2) • Delta Plan Development - completed by 2011 (Div. 35, Part 4) • Bay Delta Conservation Plan Requirements Water Use Reporting (Pavlov) • Water Diversion & Use Reporting - requirements & enforcement • Civil Liability for Water Trespass - modifications • Groundwater Elevation Monitoring Water Conservation and Sustainable Management (Feuer/Huffman) • Urban Water Conservation - 20% by 2020 • Agricultural Water Management Plans • Sustainable Regional Water Resource Management ITEM NO. 3.6 AGENDA REPORT Meeting Date: August 17, 2009 Subject: Reports on Grant Activities - Townsend Public Affairs ATTACHMENTS: TPA - Activity Report July.doc PA - July Activity Report Report(s) TPA- Activity Report_August.doc PA - August Activity Report Report(s) Tonsend PUBLIC AFFAIRS, INC. MEMORANDUM To: Yorba Linda Water District, Executive Committee From: Christopher Townsend, President Heather Dion, Director Date: July 15, 2009 Subject: Activity Report State Political Highlights: The Legislature returned to Sacramento after taking the 4t" of July weekend off. Over the weekend the Big Five (the Governor and the four legislative caucus leaders) met for several hours in an attempt to reach a deal that would allow the State to close its $26.3 billion budget deficit. Unfortunately, these meetings do not appear to have brought the sides any closer to resolution. With the passing of the 2008-09 fiscal year last week, the Legislature and Governor lost an opportunity to adopt nearly $3.3 billion in budget solutions. As a result, the Governor has begun to push for large policy changes that he believes will save the State additional money going forward. Specifically, the Governor is now requesting fingerprinting and stricter security measures for the State's In-Home Support Services program. The Governor has also mentioned modifying the State's pension system and suspending the Proposition 98 minimum education funding guarantee. None of these items have been items have been decided, but are now wrapped into the budget negotiations. It is also worth noting that last week Senate Pro Tern Darrell Steinberg announced that the Senate would be suspending all committee hearings until a budget solution is in place. This action essentially freezes all Assembly bills, regardless of the author or policy. Since the legislative deadline for policy committees to hear bills is this Friday, it is likely that the Senate will need to suspend the House rules to let committees meet after the deadline; however, that determination has not yet been made. However, after Senator Steinberg made this announcement things have been relatively quiet for the last several days on the budget front. The Big 5 (Governor and four legislative leaders) met for several hours each day over the weekend in an effort to reach a compromise on the State's $26.3 billion budget deficit. All indications are that the meetings were positive and productive, which is a good sign after a week that saw the Speaker and Governor exchange insults through their respective press offices. While the latest round of Big 5 meetings were considered productive, unfortunately they did not result in any type of agreement and the negotiations continue. The Big 5 did not discuss the potential suspension of Prop 98 over the weekend, nor what cuts would need to be made in order to avoid the suspension; the weekend meetings mostly dealt with the side issues of IHSS fraud reduction, modifications to the CaIWORKs program, and State government consolidation. The Big 5 is currently scheduled to meet in order to discuss the potential of a Prop 98 suspension. This meeting will go a long way in determining when the State will have a budget solution. TPA will work closely with YLWD, ACWA, and CSDA to oppose the borrowing of local government property taxes through the suspension of Proposition 1A. Furthermore, TPA will aggressively advocate for an "across the board" 8% borrowing in the event that Proposition 1A is suspended by the Legislature. In this time of widespread economic recession, special districts cannot afford to have their property tax taken in order to make up for the years of mistakes made by Sacramento. Funding Opportunities Integrated Regional Water Management Program (IRWMP): TPA has requested a regionally focused project from YLWD staff to include in the Orange County North Plan. This would also be the project that would be submitted to SAWPA when a call for projects occurs later this year. The IRWMP process is two-step. First SAWPA, which is the coordinating entity to submit the application for the entire Santa Ana Region, had to interview with the Department of Water Resources (DWR) to have the regional acceptance portion of the process approved. Once this is finalized, DWR will do an official call for projects in late 2009, which at this point SAWPA will submit an application with projects totaling the $114 million allocated to the region. American Reinvestment and Recovery Act (ARRA) Energy Funding: The Federal Stimulus package included millions in funding for energy reduction projects. A large majority of the funding has been allocated to cities with a population over $35,000 on a per capita formula basis. Small cities will also receive a similar per capita funding amount, but are required to go through a separate process that is just now beginning. Aside from the per capita funding that is going directly to cities, there is also competitive funding available through both the California Energy Commission and the Department of Energy (federal agency). The guidelines for these programs are just now becoming available and TPA will be assisting YLWD in applying for these opportunities. As additional information on these programs becomes available, TPA will be providing information. FY 2011 Federal Appropriations: TPA recently met with YLWD staff to begin preparing for the FY 2011 appropriations process. Our goal is to get organized very early in order to start working with congressional staff now to build relationships and educate them on the District's priorities. There were two suggestions by staff as to projects that could potentially be pursued for funding including energy efficiency projects and water reclamation projects focused on the development of local resources and self sustainability. YLWD staff will be further developing these concepts and providing project information to TPA in September so we can begin the work in D.C. that will be required to submit an application in early 2010. Tonsend PUBLIC AFFAIRS, INC. MEMORANDUM To: Yorba Linda Water District, Executive Committee From: Christopher Townsend, President Heather Dion, Senior Director Date: August 12, 2009 Subject: Activity Report State Political Highlights: The Legislature is due to return from summer recess on August 17th for the final few weeks of this year's regular session prior to adjourning on September 11th. One of the primary issues that the Legislature will attempt to deal with in that time is the State's water system. Earlier this week, the Pro Tern and Speaker released the draft of the five measures that will be considered by the conference committee on water. The bills deal primarily with issues surrounding the Delta: governance and delivery, as well as water use reporting and conservation. The conference committee, whose members have not yet been named, is scheduled to meet the day the Legislature returns from recess, August 17th, and will likely meet several more times before the end of session. The conference committee will likely adopt final language for the bills and send the bills to the Senate and Assembly Floors for vote in the final week of session. At this point, it is unclear whether or not there will be sufficient support for the measures in either house. The Republicans will want to make sure that there are provisions in the bill that will secure water delivery for the Central Valley and Southern California. While they will share some of the concerns regarding the environmental stability of the Delta ecosystem, their larger priority will be ensuring that there is a reliable water delivery system. The Democrats will largely want to ensure that the Delta ecosystem is preserved through the creation of a Delta governing body. They will want to ensure that any water delivery system does not result in salt water intrusion to the Delta which would endanger various species found solely in the Delta ecosystem. One of the main political dynamics will likely surround the fact that the water conference committee is likely not to consider a water bond. The Democrats stance has been that the State needs to determine the policy for the Delta and State water system prior to the creation of a water bond. They contend that the policy should drive the funding and not the other way around. The Republicans, and the Administration, realize that much of their leverage for a water bond will be gone if they enact the policy of the conference committee. My sources inside the Governor's Office tell me that the Governor is not likely to sign any of the water policy bills without a water bond. Crafting a water bond to help rebuild and expand the State's water infrastructure has been one of the Governor's primary objectives for the past several years. By most accounts, the Governor and Legislature are relatively close to agreeing on language for a water bond, but there are still a handful of outstanding issues. These issues primarily surround above ground storage and alternative conveyance, two key objectives for the Republicans. Do date, the Democrats have been unwilling to cede to the Governor on these two key issues. The earliest a water bond could be placed before the voters is June 2010. In order for the Legislature to place a measure on the June 2010 ballot, they must approve the measure sometime before next March. If the adoption of the Delta and state water system bills hinges upon the adoption of a water bond, it is possible that the Legislature will wait until they return next January and work behind the scenes over interim on the final outstanding issues. While it is likely that the Legislature and Governor will ultimately pass comprehensive reform measures for Delta governance, water conservation, water delivery and a comprehensive water bond in order to create and update water infrastructure for the State's current needs, it is possible that it will not be done until next year when the Legislature faces stricter deadlines. Funding Opportunities Integrated Regional Water Management Program (IRWMP): TPA has requested a regionally focused project from YLWD staff to include in the Orange County North Plan. This would also be the project that would be submitted to SAWPA when a call for projects occurs later this year. The IRWMP process is two-step. First SAWPA, which is the coordinating entity to submit the application for the entire Santa Ana Region, had to interview with the Department of Water Resources (DWR) to have the regional acceptance portion of the process approved. Once this is finalized, DWR will do an official call for projects in late 2009, which at this point SAWPA will submit an application with projects totaling the $114 million allocated to the region. Currently YLWD staff is putting together conceptual project ideas for this funding opportunity. Once those are approved by the Board, TPA will work with the County to integrate the project(s) into the North Orange County IRWM plan as well as integrate it into the SAWPA plan once there is an official call for projects. The timeline for both of these efforts is to have a conceptual project no later than September 30, 2009. American Reinvestment and Recovery Act (ARRA) Energy Funding: The Federal Stimulus package included millions in funding for energy reduction projects. A large majority of the funding has been allocated to cities with a population over $35,000 on a per capita formula basis. Small cities will also receive a similar per capita funding amount, but are required to go through a separate process that is just now beginning. Aside from the per capita funding that is going directly to cities, there is also competitive funding available through both the California Energy Commission and the Department of Energy (federal agency). The guidelines for these programs have not become, but available and TPA will be assisting YLWD in applying for these opportunities as soon as the criteria and applications are made public. As additional information on these programs becomes available, TPA will be providing information. TPA will need specific project information from YLWD staff to apply for these funds including, but not limited to, project description, quantified analysis of energy reduction based on project request, budget and long-term management plan to sustain the project once any stimulus funding has been exhausted. FY 2011 Federal Appropriations: TPA recently met with YLWD staff to begin preparing for the FY 2011 appropriations process. Our goal is to get organized very early in order to start working with congressional staff now to build relationships and educate them on the District's priorities. There were two suggestions by staff as to projects that could potentially be pursued for funding including energy efficiency projects and water reclamation projects focused on the development of local resources and self sustainability. YLWD staff will be further developing these concepts and providing project information to TPA by September 30th so we can begin the work in D.C. that will be required to submit an application in early 2010. ITEM NO. 3.7 AGENDA REPORT Meeting Date: August 17, 2009 Subject: Report on Legislative Bills - McCormick, Kidman & Behrens ATTACHMENTS: MKB - Legislative Bills Reports.pdf '?KB - Legislative Bills Report Report(s) RECEIVED MCCOBMICH, KIDMAN & BEHRENS. LLP LAWYERS JUN 2 9 2009 650 TOWN CENTER DRIVE H. L. IMIKEI MCCORMICK" SUITE I00 ARTHUR 6. KIOMAN• YORQALINDA WATER DISTRICT RUSSELL G. BEHRENS• COSTA MESA. CALIFORNIA 92626 SUZANNE M. TAGUE0 TELEPHONES 1714) 7S5-3100 DAVID O. BOYER• (S00) 756-3125 DANIEL J. PAYNE• JOAN J. SENNETT FAX t7141755-3110 EDDY R. SELTRAN www.mkbiewyers.com TRAM T. TRAM JOHN P. OLOWACKI LAURIE E. PARK •A PROFESSIONAL CORPORATION TCERT;F19D SPECIALIST - PROQATE June 26, 2009 ESTATE PLANNING 6 TRUST LAW THE STATE BAR OF CALIFORNIA BOARD OF LEGAL SPECIALIZATION "OF COUNSEL MEMORANDUM TO WATER AGENCY CLIENTS FROM McCormick, Kidman & Behrens, LLP RE Second Report on 2009 Legislative Bills Enclosed please find the second Legislative Report for the 2009 legislative session of the California Legislature. This report shows the bills' status after the June 5th deadline to pass bills out of their house of origin. This report covers bills which were covered in our first Legislative Report and additional relevant bills (AB 282, AB 1465, SB 229 and SB 261) which came to light in the meantime and which met the June 5th deadline. Four additional bills that were not mentioned in our first report are covered in this report, but did not meet the June 5th deadline. Those four bills (SB 301, SB 371, SB 456 and SB 735) were all water general obligation bond bills. We will continue to track these bills for any possible revival of these bills. As always, we have access to bill text and other information if more detail is needed or if there are questions on the summary provided. McCORMICK, KIDMAN & BEHRENS, LLP B ARTHUR G. KIDMAN AGKIERB SECOND 2009 LEGISLATIVE REPORT TABLE OF CONTENTS A. DROUGHT, WATER CONSERVATION AND WATER RATIONING B. WATER RESOURCES MANAGEMENT/WATER PROJECTS C. INFRASTRUCTURE FINANCING D. EMINENT DOMAIN E. PUBLIC OFFICIALS; ETHICS F. BROWN ACT/PUBLIC RECORDS G. LABOR, EMPLOYMENT AND BENEFITS H. PUBLIC WORKS/CONTRACTS 1. WATER SUPPLY AND LAND DEVELOPMENT J. WATER QUALITY/POLLUTION K. ENVIRONMENTAL QUALITY AND ENDANGERED SPECIES L. SPECIFIC AGENCIES AND/OR PROJECTS M. LAFCO N. PROPERTY TAX ALLOCATION; REVENUE AND COLLECTION PROCEDURES 0. BILLING AND REVENUE PROCEDURES McCormick, Kidman & Behrens, LLP • Legislative Report June 26, 2009 SECOND LEGISLATIVE REPORT FOR 2009 A. DROUGHT, WATER CONSERVATION AND WATER RATIONING A.1 AB 49 (Feuer) Water conservation: agricultural water management planning Existing law requires the Department of Water Resources ("DWR") to convene an independent technical panel to provide information to DWR and the Legislature on new demand management measures, technologies, and approaches. "Demand management measures" means those water conservation measures, programs, and incentives that prevent the waste of water and promote the reasonable and efficient use and reuse of available supplies. This bill would require the state to achieve a 20% reduction in urban per capita water use in California by December 31, 2020. The state would be required to make incremental progress towards this goal by reducing per capita water use by at least 10% on or before December 31, 2015. This bill would require each urban retail water supplier to develop urban water use targets by December 31, 2010, in accordance with specified requirements. This bill would require DWR, in consultation with other state agencies, to develop a single standardized water use reporting form. The bill, with certain exceptions, would condition eligibility for certain water management grants or loans to urban water suppliers and agricultural water suppliers on the implementation of water conservation requirements established by the bill. ACWA Position: Oppose unless amended Status: Sen. Nat. Res. do Water A.2 AB 474 (Blumenfield) Contractual Assessments: water efficiency improvements Existing law authorizes the legislative body of any city, defined as a city, county, or city and county, to determine that it would be convenient and advantageous to designate an area within which authorized city officials and free and willing property owners may enter into contractual assessments and make arrangements to finance public improvements to specified lots or parcels or to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property, as specified. Existing law requires the legislative body to make these determinations by adopting a resolution indicating its intention to do so and requires the resolution to include certain specified information. This bill would expand these provisions to authorize the legislative body of any public agency to enter into contractual assessments to finance the installation of water efficiency improvements that are permanently fixed to real property. This bill would require a legislative body to perform additional record keeping and provide specified notice to any entity that provides energy or water within the boundaries of the area within which contractual assessments may be entered into. This bill would also require additional specified disclosures to a transfer of real property subject to a contractual assessment. ACWA Position: Favor Status: Sen. Loc. Gov. 2 McCormick, Kidman & Behrens, LLP • Legislative Report June 26, 2009 A.3 AB 1061 (Lieu) Homeowner Associations: water-efficient landscapes This bill would provide that a provision of any of the governing documents of a common interest development shall be void and unenforceable if it prohibits, or includes conditions that have the effect of prohibiting or restricting compliance with any regulation or restriction on the use of water adopted pursuant to Section 353 or 375 of the Water Code or a water efficient landscape ordinance adopted or in effect pursuant to Section 65595(c) of the Government Code. I ACWA Position: Favor Status: Sen. Rls. A.4 SB 407 (Padilla) Property transfers: plumbing fixtures replacement Existing law requires certain disclosures to be made upon the transfer of real estate. This bill would require that, on and after January 1, 2014, all plumbing fixtures in any residential or commercial real property that are not water-conserving plumbing fixtures be replaced prior to the time of sale or transfer by the property owner with water-conserving plumbing fixtures, as defined, with specified exceptions. The bill would require that compliance with this requirement be included as a condition of escrow for any sale or transfer. This bill would include within these exceptions, among others, a sale or a transfer pursuant to non judicial foreclosure and a sale or transfer in which the requirements of this article would impose a significant financial hardship on the seller or transferor. - - - The bill would also require a seller or transferor of real property to certify to the prospective purchaser or transferee, in writing, that the requirement has been satisfied. The bill would except from its provisions certain transfers, including transfers in which a licensed plumber certifies that, due to the age or configuration of the property or its plumbing, installation of water- conserving plumbing fixtures is not technically feasible. The bill would require a real estate agent to disclose the requirements described above and would provide that an agent has no other liability in this connection. ACWA Position: Support/Sponsor Status: Asm. Jud. B. WATER RESOURCES MANAGEMENTIWATER PROJECTS B.1 AB 934 (Gilmoe) San Joaquin Valley: water supply ACWA Position: Favor Status: Dead B.2 AB 1520 (Evans) Statewide Watershed Program ACWA Position: Favor f amended Status: Dead 3 McCormick, Kidman & Behrens, LLP • Legislative Report June 26, 2009 B.3 SB 229 (Pavley) California Water Commission: Bay-Delta i Existing law establishes the 9-member California Water Commission in the DWR and requires the commission to conduct an annual review of the progress and operation of the State Water Project and to carry out various other related functions. This bill would revise the membership and functions of the commission. The bill would establish the commission in state government as an independent commission. The commission would consist of 5 members appointed by the Governor and subject to the confirmation of the Senate. This bill would require the commission to serve as lead agency to implement projects recommended by the final environmental impact report of the Bay-Delta Conservation Plan, or delegate these responsibilities to other appropriate state or local entities. The commission would be required to identify and prioritize early action projects and programs for achieving specified goals for the Sacramento-San Joaquin Delta, and select a watermaster to enforce all laws that are relevant to the successful implementation of the Bay-Delta Conservation Plan. The commission would be required to establish and impose a per-acre-foot fee on water diversions within the Sacramento-San Joaquin Delta watershed, and a fee on any water conveyed through or around the Sacramento-San Joaquin Delta that may be used, upon appropriation by the Legislature, to fund the commission's responsibilities under the bill. ACWA Position: Oppose unless amended Status: Asm. WPW B.4 SB 261 (Dutton) Water use Existing law requires the DWR to convene an independent technical panel to provide information to the department and the Legislature on new demand management measures, technologies, and approaches. This bill would require an urban water supplier to develop and implement a water use efficiency and efficient water resources management plan to reduce residential potable water use in a specified manner or achieve extraordinary water use efficiency, as defined. The urban water supplier or the regional water management group, as applicable, would be required to report its progress towards achieving a prescribed water use efficiency and efficient water resources management target in specified documents. The bill would enact the Comprehensive Urban Water Efficiency Act of 2009. The SWRCB and DWR, not later than April 1, 2010, would be required to convene a task force to develop best management practices for commercial, industrial, and institutional water uses for the purpose of achieving a specified reduction in water use by 2020. ACWA Position: Support Status: Asm. Water, Parks & Wildlife ("WPW') B.5 SB 736 (Pavley) Water consumption fee ACWA Position: Watch Status: Dead 4 McCormick, Kidman & Behrens, LLP Legislative Report June 26, 2009 B.6 ACA 12 (Logue) Water: area of origin statutes Existing provisions of the Water Code provide for the protection of designated areas within which water originates or related areas, including the "area of origin," "county of origin," "watershed protection," and "Delta protection" statutes. This measure would prohibit the Legislature from amending, repealing, or changing the scope or effect of any of those provisions unless the bill is passed in each house by a 213 vote of the membership of each house. ACWA Position: N/A Status: Asm. WPW C. INFRASTRUCTURE FINANCING CA AB 134 (Brownley) Los Angeles County Flood Control District: fees and charges ACWA Position: Favor Status: Dead C.2 ACA 9 (Huffman) Local government bonds: special taxes: voter approval The California Constitution conditions the imposition of a special tax by a city, county, or special district upon the approval of 213 of the voters of the city, county, or special district voting on-that tax. This measure would change the 213 voter-approval requirement for special taxes to, instead, authorize a city, county, or special district to impose a special tax with the approval of 55% of its voters voting on the tax. ACWA Position: Support Status: Asm. Appr. D. EMINENT DOMAIN E. PUBLIC OFFICIALS; ETHICS EA AB 1412 (Torrico) Political Reform Act of 1974: gifts ACWA Position: Watch Status: Dead E.2 SB 233 (Aanestad) SWRCB: California regional water quality control boards ACWA Position: Watch Status: Dead 5 McCormick, Kidman & Behrens, LLP • Legislative Report June 26, 2009 F. BROWN ACT/PUBLIC RECORDS F.1 AB 520 (Carter) Public records ACWA Position: Favor Status: Dead G. LABOR, EMPLOYMENT AND BENEFITS GA AB 943 (Mendoza) Employment: credit reports This bill would prohibit an employer, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the information is (1) substantially job-related, meaning that the position of the person for whom the report is sought has access to money, other assets, or confidential information, and (2) the position of the person for which the person is sought is a managerial position, a position in a city, county, or both city and county, that of a sworn peace officer or other law enforcement position, or a position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer. ACWA Position: Not favor unless amended Status: Sen. Jud. G.2 SB 711 (Lend) Public meetings: closed sessions: labor negotiations ACWA Position: Oppose Status: Dead H. PUBLIC WORKS/CONTRACTS HA AB 815 (Ma) Public contracts: plans and specifications Existing law prohibits a local public entity, charter city, or charter county from requiring a bidder to assume responsibility for the completeness and accuracy of architectural or engineering plans and specifications on public works projects, except on clearly designated design-build projects. This bill would declare the intent of the Legislature to consider enacting subsequent legislation to address the issues raised in a specified case being reviewed by the California Supreme Court, as needed, once those issues are ripe for consideration after the Supreme Court has rendered a decision interpreting the parties' rights and obligations under existing law with regard to public contracts disputes. ACWA Position: Oppose Status: Sen.Loc. Gov. 6 McCormick, Kidman & Behrens, LLP Legislative Report June 26, 2009 1. WATER SUPPLY AND LAND DEVELOPMENT 11. AB 55 (Jeffries) Water supply planning ACWA Position: Not favor Status: Dead 1.2 AB 300 (Caballero) Subdivisions: water supply Water Supply Assessment Existing law requires a city or county that determines a project, as defined, is subject to the California Environmental Quality Act to identify any public water system that may supply water for the project and to request those public water systems to prepare a water supply assessment. If no public water system is identified, the city or county is required to prepare the water supply assessment. This bill would require, until January 1, 2017, if the project applicant elects to include voluntary demand management measures, any city, county, or public water system preparing a water supply assessment to reduce the projected water demand for the project to an amount below the current statutory, regulatory, and local ordinance requirements based on the project applicant's voluntary water demand management measures, as defined. The bill would authorize the applicant to enter into a mutual agreement with the public water system to mitigate water demand associated with a proposed subdivision by depositing funds in a Voluntary Water Demand Mitigation Fund, as defined. The fees paid into the Voluntary Water Demand Mitigation Fund would be prohibited from exceeding the amount necessary to offset the actual or percentage of actual water demand impacts agreed upon in the agreement between the applicant and the public water system. The bill would authorize, at the discretion of the public water system, the amount required for the Voluntary Water Demand Mitigation Fund to be reduced by a portion of the normally required system capacity charges that finance future water supplies. The bill would also authorize any reduction in the capacity charge to be calculated using the amount of water projected to be conserved using the Voluntary Water Demand Mitigation Fund at the cost determined by the public water system for developing new water supplies through water conservation. The bill would not require the total reduction in system capacity charges to be equal to the amount paid into the Voluntary Water Demand Mitigation Fund. The bill would prohibit a project from being disapproved due to the applicant's refusal to use voluntary mitigation measures. The bill would also require the public water system to determine the projected water savings for the voluntary demand management measures that will be incorporated into the subdivision. The public water system would be required to expend all funds from the Voluntary Water Demand Mitigation Fund on water conservation measures that will reduce the projected demand associated with the subdivision. The public water system would be prohibited from using any funds from the Voluntary Water Conservation Mitigation Fund to supplant funding for water conservation programs required by existing law or paid for by existing customers through water rates and surcharges. 7 McCormick, Kidman & Behrens, LLP Legislative Report June 26, 2009 Written Verification The Subdivision Map Act prohibits approval of a tentative map, or a parcel map for which a tentative map was not required, or a development agreement for a subdivision of property of more than 500 dwelling units, except as specified, including the design of the subdivision or the type of improvement, unless the legislative body of a city or county or the designated advisory agency provides written verification from the applicable public water system that a sufficient water supply is available or, in addition, a specified finding is made by the local agency that sufficient water supplies are, or will be, available prior to completion of the project. This bill would require, until January 1, 2017, the public water system, or the local agency if there is no public water system, to review, verify for accuracy, and approve, as specified, the subdivider's water savings projections attributable to voluntary demand management measures, as defined. The public water agency would be authorized to collect fees necessary to provide the additional analysis of the voluntary demand management measures. The public water system would be required to determine the projected water savings for the voluntary demand management measures that will be incorporated into the subdivision. The projected water savings would be authorized to be calculated using specified data compiled or maintained by the public water system or the water savings projections adopted by the California Urban Water Conservation Council. If a project applicant proposes to use a new voluntary water reduction demand management measure that is not based on water savings projections adopted by the California Urban Water Conservation Council, or the public water system, the public water system's determination of the projected water savings would be required to be made based on documented methodologies or calculations submitted in the record. The public water system would be required to report on the monitoring and compliance of voluntary water demand management measures and to determine whether they have resulted in the water savings necessary to achieve the agreed upon water demand offsets. The bill would require copies of the first report prepared 5 years after the project has been fully developed to be provided to the project applicant, the city or county that approved the subdivision map, the California Urban Water Conservation Council, and the DWR. The bill would also encourage the public water system to commit to carrying out the water conservation measures funded by the Voluntary Water Demand Mitigation Fund within 24 months of the sale of the last unit of the proposed subdivision. The bill would provide that the sole remedy for the failure of a public water system to implement the water conservation measures would be for an interested party to seek a writ of mandamus to compel the public water system to comply. ACWA Position: Support if amended Status: Sen. Nat. Res. & Water 1.3 AB 1408 (Krekorian) Subdivisions: Water Demand Mitigation Fund Under current law, the Subdivision Map Act establishes a statewide regulatory framework for controlling the subdividing of land. The Act generally requires a subdivider to submit, and have approved by the city, county, or city and county in which the land is situated, a tentative map. 8 McCormick, Kidman & Behrens, LLP • Legislative Report June 26, 2009 The Act requires the legislative body of a city or county or the advisory agency, to the extent that it is authorized by local ordinance to approve, conditionally approve, or disapprove the tentative map, to include as a condition in any tentative map that includes a subdivision a requirement that a sufficient water supply be available. The Act authorizes the legislative body to request written verification of sufficient water supply, and, when the written verification relies on projected water supplies that are not currently available to the public water system to provide a sufficient water supply to the subdivision, requires that the written verification as to those projected water supplies be based on prescribed elements. This bill would instead require the legislative body of a city or county or the advisory agency, as referenced above, to include as a condition in any tentative map that includes a subdivision a requirement that the subdivision have a sufficient water supply be available or that sufficient water supplies will be made available through a Water Demand Mitigation Fund held by the public water system. The amount of funding needed for voluntary participation by the subdivision applicant in the Water Demand Mitigation Fund would be required to be based on offsetting at least 100 percent of the projected water demand associated with the subdivision, as determined by the public water system. The public water system would be required to expend all funds in the Water Demand Mitigation Fund on water conservation measures that will offset at least 100 percent of the projected demand associated with the subdivision, as specified. ACWA Position: Support if amended Status: Inactive L4 AB 1465 (Hill) - Urban water management planning Existing law requires every urban water supplier to prepare and adopt an urban water management plan, in accordance with specified requirements, for submission to the DWR and other entities. An urban water supplier is required to provide information relating to the supplier's water demand management measures. This bill would revise provisions relating to the information that the urban water supplier is required to include in the plan with regard to water demand management measures. This bill would require the urban water supplier to describe in the plan the opportunities for development of recycled water supplies, including opportunities for nonpotable and indirect potable reuse, and the opportunities for stormwater recapture and reuse as a long-term water supply. Existing law, with certain exceptions, requires the terms of, and eligibility for, a water management grant or loan, made to an urban water supplier and awarded or administered by the DWR, the SWRCB, or the California Bay-Delta Authority or its successor agency, to be conditioned on the implementation of the water demand management measures identified in the supplier's urban water management plan. This bill would require the DWR to determine that an urban water supplier is eligible for a water management grant or loan, despite a failure to implement all of the water demand management treasures identified in the urban water management plan, if the supplier submits to the DWR for approval documentation demonstrating that the supplier's proposed water demand management measures provide a level of water savings that is equal to or greater than the savings provided by 9 McCormick, Kidman & Behrens, LLP Legislative Report June 26, 2009 the implementation of measures identified in the plan or that the supplier lacks the authority to implement one or more of those measures. ACWA Position: Favor Status: Sen. Nat. Res, & Water J. WATER QUALITY/POLLUTION J.1 AB 737 (ACESTM) Public water systems: public notification The California Safe Drinking Water Act requires the State Department of Public Health to administer provisions relating to the regulation of drinking water to protect public health, including, but not limited to, conducting research, studies, and demonstration programs relating to the provision of a dependable, safe supply of drinking water, enforcing the federal Safe Drinking Water Act, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies. Existing law also requires every public water system to notify users when certain monitoring or other requirements have not been complied with, to notify customers when failure to comply with a primary drinking water standard that represents an imminent danger, to notify customers of confirmation of detected contaminants, and to annually deliver a prescribed consumer confidence report to each consumer. This bill would, in addition, require posting of the notices and reports on the public water system's internet website, if that system maintains a web site. The bill would also permit the public water system to remove or amend the posted information once the problem is rectified. ACWA Position: Watch Status: Sen. Env. Qual. J.2 AB 1366 (Feuer) Residential self-regenerating water softeners Existing law requires the SWRCB to formulate and adopt state policy for water quality control. California regional water quality control boards are required to establish water quality objectives in water quality control plans. Under existing law, a local agency, by ordinance, may limit the availability, or prohibit the installation, of residential water softening or conditioning appliances that discharge to the community sewer system if the local agency makes certain findings and includes them in the ordinance. This bill would authorize any local agency that maintains a community sewer system within specified areas of the state to take action, by ordinance and after a public meeting, to control salinity inputs from residential self regenerating water softeners to protect the quality of the waters of the state, if the appropriate regional board makes a finding that the control of residential salinity input will contribute to the achievement of water quality objectives. ACWA Position: Support Status: Sen. Env. Qual. 10 McCormick, Kidman & Behrens, LLP Legislative Report June 26, 2009 J.3 SB 42 (Corbett) Coastal resources: once-through cooling ACWA Position: Oppose Status: Dead J.4 SB 565 (Pavley) Water recycling Existing law establishes the SWRCB and the California regional water quality control boards as the principal state agencies with authority over matters relating to water quality. Existing law requires specified persons who discharge waste, as defined, in a manner that could affect the quality of the waters of the state, to pay an annual fee to the SWRCB according to a fee schedule established by the SWRCB. This bill would require the SWRCB, in consultation with the DWR and the State Department of Public Health, to develop a plan to ensure that at least 50% of wastewater that is annually discharged into the ocean, as of the year 2009, is recycled and put to beneficial use by the year 2030. This bill would prescribe various requirements with respect to that plan. This bill would also require the SWRCB to impose a fee on specified persons discharging wastewater into the ocean, the San Francisco Bay, or any other enclosed bay in the state, and would require that fee to be deposited into the Ocean Discharge Recycling Fund, which the bill would establish. This bill would then authorize the SWRCB to expend the moneys in that fund, upon appropriation by the Legislature, for the purposes of carrying out the wastewater recycling plan. ACWA Position: Oppose Status: Asm. WPW K. ENVIRONMENTAL QUALITY AND ENDANGERED SPECIES K.1 AB 28 (Jeffries) Natural gas engines: water movement: emissions limitation requirements ACWA Position: Support Status: Dead K.2 AB 804 (Hall) Invasive aquatic species: mussels This bill would provide that an operator of water delivery and storage facilities, who has prepared, initiated, and is in compliance with a plan to control and eradicate dreissenid mussels in accordance with the above existing provisions of law, would not be subject to any civil or criminal liability for the introduction of dreissenid mussel species as a result of operations of those facilities. ACWA Position: Support/Sponsor Status: Sen. Jud. IQ SB 476 (Correa) CEQA: noncompliance allegations: public comment CEQA requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to cant' out or approve that may have a significant effect on the environment or to adopt a negative declaration 11 McCormick, Kidman & Behrens, LLP Legislative Report June 26, 2009 if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA provides for a public review period for a draft EIR, proposed negative declaration, or proposed mitigated negative declaration. CEQA requires a lead agency to evaluate and respond to comments made during the public review period and authorizes a lead agency to evaluate and respond to comments made on a draft EIR when the comments are submitted after the public review period. CEQA requires an action or proceeding alleging noncompliance with its requirements to be based on grounds that were presented to the public agency orally or in writing by any person and prohibits a person from maintaining an action or proceeding unless the person objected to the approval of the project orally or in writing, during the public comment period provided under CEQA or prior to the close of the public hearing on the project before the issuance of the notice of determination. This bill instead would prohibit these actions or proceedings unless oral or written presentation or objection occurs during the public comment period provided under CEQA or prior to the close of the public hearing on the project before the filing, rather than issuance, of the notice of determination. ACWA Position: Favor Status: Asm. Nat. Res. L. LAFCO M. SPECIFIC AGENCIES AND/OR PROJECTS SECONDLAFCO N. PROPERTY TAX ALLOCATION; REVENUE AND COLLECTION PROCEDURES 0. BILLING AND REVENUE PROCEDURES 0.1 AB 282 (Committee on Transportation) Transportation Existing law prohibits a person from driving a motor vehicle if a television receiver, a video monitor, or a television or video screen, or any other similar means of visually displaying a television broadcast or video signal that produces entertainment or business applications, is operating and is located in the motor vehicle at any point forward of the back of the driver's seat, or is operating and visible to the driver while driving the motor vehicle, with certain exceptions. This bill would add to the exceptions to the prohibition in existing law a mobile digital terminal installed in a vehicle owned or operated by specified corporate entities, including, among other entities, a sewer system corporation, as defined, a water corporation, as defined, or a city, joint powers agency, or special district, if that local entity uses the vehicle solely in the provision of 12 McCormack, Kidman & Behrens, LLP Legislative Report June 26, 2009 sewer service, gas service, water service, or wastewater service, and the terminal is fitted with an opaque covering that does not allow the driver to view the display while driving, or when the vehicle is deployed in an emergency to respond to an interruption or impending interruption of specified services. ACWA Position: Support Status: Sen. Trans. & Housing i 13 McCormick, Kidman & Behrens, LLP Legislative Report June 26, 2009 INDEX AB 28 (Jeffries) ...............................................................................................................................11 AB 49 (Feuer) ...................................................................................................................................2 AB 55 (Jeffries) ...........................................................................................................................7 AB 139 (Brownley) ...........................................................................................................................5 AB 282 (Comm. Trans.) .................................................................................................................12 AB 300 (Caballero) ...........................................................................................................................7 AB 474 (Blumenfield) ......................................................................................................................2 AB 520 (Carter) ................................................................................................................................6 AB 737 (ACESTM) ........................................................................................................................10 AB 804 (Hall) .................................................................................................................................11 AB 815 (Ma) ....................................................................................................................................6 AB 934 (Gilmoe) ..............................................................................................................................3 AB 943 (Mendoza) ...........................................................................................................................6 AB 1061 (Lieu) 3 AB 1366 (Feuer) .............................................................................................................................10 AB 1408 (Krekorian) ........................................................................................................................8 AB 1412 (Torrico) ............................................................................................................................5 AB 1465 (Hill) . ...............................................................................................................................9 AB 1520 (Evans) ..............................................................................................................................3 ACA 9 (Huffman) .............................................................................................................................5 ACA 12 (Logue) ...............................................................................................................................5 SB 42 (Corbett) ................................................................................................................................11 SB 229 (Pavley) ...............................................................................................................................4 SB 233 (Aanestad) ............................................................................................................................5 SB 261 (Dutton) .................................................................................................................................4 SB 407 (Padilla) ...............................................................................................................................3 SB 476 (Correa) ..............................................................................................................................11 SB 565 (Pavley) i 1 SB 711 (Leno) ....................................................................................................................................7 SB 736 (Pavley) ................................................................................................................................4 14 ITEM NO. 3.8 AGENDA REPORT Meeting Date: August 17, 2009 Subject: General Counsel's Monthly Summary Billing Reports ATTACHMENTS: MKB - Billing Summary June.pdf 'dKB - June Billing Summary Report(s) MKB Charge Summary June.pdf 1KB - June Charge Summary Report(s) MKB Billing Summary July.pdf ,1KB - July Billing Summary Report(s) MKB Charge Summary July.pdf 11KB - July Charge Summary Report(s) YORBA LINDA WATER DISTRICT MONTHLY SUMMARY BILLING CHART BILUNG MONTH. June Matter Matter Date Task Order Name Number Opened Amount CURRENT FISCAL YEAR 2008 -2009 Current Billing Total Billed to Date Total Billed 2007 -2008 June 25, 2009 Current Fiscal Year Prior Fiscal Year CONSTRUCTION CONTRACTS 002 7/31/2007 NIA $1,279.14 $16,113.90 $11,223.18 PROPERTY TAX ALLOCATION 030 $1,117.50 $2,085.00 OCWD ANNEXATION 040 1/13/1994 NIA $0.00 $7,185.00 $60,261.09 RICHFIELD SITE IMPROVEMENTS 042 $0.00 $545.00 SHELL 051 $0.00 $1,304.71 HIDDEN HILLS RESERVOIR 068 8/25/2003 $5,306.28 $120,193.53 S &S DEVELOPMENT AGREEMENTS 071 $0.00 $6,140.00 RWQCB 073 12/182002 $0.00 $636.21 $2,161.00 LAKEVIEW RESERVOIR 081 3/22005 $20,000.00 $0.00 $1,924.00 $36,645.72 NON - CONSTRUCTION AGREEMENTS 084 4152005 $11,000.00 $6,806.50 $43,493.12 $15,888.25 CELL TOWER 085 7/282006 $15,000.00 $0.00 $1,012.50 $24,162.90 WATER RATES/WATER CONSERVATION 087 7/312006 $10,000.00 $4,058.34 $76,130.12 $26,960.50 BOD PROCEDURES 089 3272006 $5,000.00 $0.00 $12,522.50 $8,732.10 GRANDVIEW SEWER 091 5/30/20071 $10,000.00 $0.00 $1,202.50 TOTAL $18,567.761 $290,488.09 $186,034.74 McCormick, Kidman & Behrens Charges Month of Jun-09 Expensed 21,067.76 Job charges 0.00 21, 067.76 YTD through Jun-09 Expensed 247,579.75 Job charges 70,786.34 318,366.09 YORBA LINDA WATER DISTRICT MONTHLY SUMMARY BILLING CHART BILLING MONTH: Jul Matter Matter Date Task Order Name Number Opened Amount CURRENT FISCAL YEAR 2009 -2010 Current Billing Total Billed to Date Total Billed 2008 -2009 July 28, 2009 Current Fiscal Year Prior Fiscal Year CONSTRUCTION CONTRACTS 002 7/31/2007 NIA $2,064.60 $2,064.60 $16,113.90 PROPERTY TAX ALLOCATION 030 $1,404.54 $1,404.54 $2,085.00 OCWD ANNEXATION 040 1/13/1994 N/A $0.00 $0.00 $7,185.00 RICHFIELD SITE IMPROVEMENTS 042 $0.00 $0.00 $545.00 SHELL 051 $0.00 $0.00 $1,304.71 HIDDEN HILLS RESERVOIR 068 8/25/2003 $17,775.50 $17,775.50 $120,193.53 S &S DEVELOPMENT AGREEMENTS 071 $0.00 $0.00 $6,140.00 RWQCB 073 12/18/2002 $0.00 $0.00 $636.21 LAKEVIEW RESERVOIR 081 3/2!2005 $20,000.00 $0.00 $0.00 $1,924.00 NON - CONSTRUCTION AGREEMENTS 084 4/5/2005 $11, 000.00 $4,819.00 $4,819.00 $43,493.12 CELL TOWER 085 7/28/2006 $15,000.00 $0.00 $0.00 $1,012.50 WATER RATES/WATER CONSERVATION 087 7/31/2006 $10,000-00 $2,719.50 $2,719.50 $76,130.12 BOD PROCEDURES 089 3/27/2006 $5,000.00 $0.00 $0.00 $12,522.50 GRANDVIEW SEWER 091 5/30/2007 $10,000.00 $545.50 $545.50 $1,202.50 TOTAL I 1 1 $29,328.64 $29,328.64 $290,488.09 McCormick, Kidman & Behrens Charges Month of Jul-09 Expensed 27,593.64 Job charges 4,235.00 31,828.64 YTD through Jul-09 Expensed 27,593.64 Job charges 4,235.00 31,828.64 ITEM NO. 3.9 AGENDA REPORT Meeting Date: August 17, 2009 Subject: Directors' and General Manager's Fees and Expenses (Apr-Jun) ATTACHMENTS: 4thQTR0809.pdf +=GDiGM Fees and Expenses Report(s) Quarter -To -Date Report YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES FISCAL YEAR 2008 -2009 4TH QUARTER REPORT FROM 04 -01 -2009 TO 06 -30 -2009 ARMSTRONG BEVERAGE COLLETT MILLS SUMMERFIELD SUB -TOTAL VECCHIARELLI TOTAL REGULAR MEETINGS ATTENDED 6 6 5 6 6 29 COMMITTEE MEETINGS ATTENDED 6 9 9 8 7 39 OFF SITE MEETINGS ATTENDED 3 0 0 9 3 15 SPECIAL MEETINGS ATTENDED TOTAL MEETINGS ATTENDED QTD 15 15 14 23 16 83 83 DIRECTOR FEES QTD $2,250 $2,250 $2,100 $3,450 $2,400 $12,450 $12,450 MEETING FEES BUDGET QTD $3,087 $3,087 $3,087 $3,087 $3,087 $15,435 $15,435 TRAVEL & CONF. EXPENSES QTD $0 $0 $0 $874 $0 $874 $874 TRAVEL & CONF. BUDGET QTD $583 $583 $583 $583 $583 $2,915 $2,915 DIR.FEES AND EXPENSES QTD $2,250 $2,250 $2,100 $4,324 $2,400 $13,324 $13,324 FEES AND EXPENSES BUDGET QTD $3,670 $3,670 $3,670 $3,670 $3,670 $18,350 $18,350 GEN MGR EXPENSES QTD $276 $276 GEN MGR TRAVEL /CONF. BUDGET QTD $1,280 $1,280 TOTAL FEES & EXPENSES QTD $2,250 $2,250 $2,100 $4,324 $2,400 $13,324 $276 $13,600 TOTAL FEES & EXPENSES BUDGET QT $3,670 $3,670 $3,670 $3,670 $3,670 $18,350 $1,280 $19,630 YEAR -TO -DATE REPORT YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES FISCAL YEAR 2008 -2009 YEAR -TO -DATE REPORT FROM 07 -01 -2008 TO 06 -30 -2009 GEN MGR EXPENSES YTD GEN MGR TRAVEL CONF. BUDGET YTD TOTAL FEES & EXPENSES YTD $7,050 $10,799 $7,650 TOTAL FEES & EXPENSES BUDGET YTD $14,680 $14,680 $14,680 MILLS ARMSTRONG BEVERAGE COLETT REGULAR MEETINGS ATTENDED 19 24 19 COMMITTEE MEETINGS ATTENDED 21 32 30 OFF SITE MEETINGS ATTENDED 5 5 1 SPECIAL MEETINGS ATTENDED 2 2 1 TOTAL MEETINGS ATTENDED YTD 47 63 51 DIRECTOR FEES YTD $7,050 $9,450 $7,650 MEETING FEES BUDGET YTD $12,348 $12,348 $12,348 TRAVEL & CONFERENCES EXPENSES YTD $0 $1,349 $0 TRAVEL & CONFERENCE BUDGET YTD $2,332 $2,332 $2,332 DIRECTORS FEES & EXPENSES YTD $7,050 $10,799 $7,650 FEES & EXPENSES BUDGET YTD $14,680 $14,680 $14,680 GEN MGR EXPENSES YTD GEN MGR TRAVEL CONF. BUDGET YTD TOTAL FEES & EXPENSES YTD $7,050 $10,799 $7,650 TOTAL FEES & EXPENSES BUDGET YTD $14,680 $14,680 $14,680 MILLS SUMMERFIELD SUB -TOTAL VECCHIARELLI TOTAL 23 25 110 $78,520 28 28 139 15 7 33 2 3 10 68 63 292 292 $10,200 $9,450 $43,800 $43,800 $12,348 $12,348 $61,740 $61,740 $2,718 $0 $4,067 $4,067 $2,332 $2,332 $11,660 $11,660 $12,918 $9,450 $47,867 $47,867 $14,680 $14,680 $73,400 $73,400 $466 $466 $5,120 $5,120 $12,918 $9,450 $47,867 $466 $48,333 $14,680 $14,680 $73,400 $5,120 $78,520 DIRECTORS RECAP OF TRAVEL /CONFERENCE EXPENSES April - June 2009 GL Trip Trip Trip Reimbursable expenses paid by YLWD Director date date name location Meals Lodging Travel Conf. fee Misc Total trip Total Armstrong $0 $0 $0 Beverage $0 $0 $0 Collett $0 $0 Mills # # # # # ## 05/09 ACWA -JPIA conference Sacramento $36 $271 $225 $292 $50 $874 $0 $874 Summerfield $0 $0 $0 Total directors $36 $271 $225 $292 $50 $874 $874 General Manaaer Vecchiarelli 4/8/2009 05/09 OC Water Summit OCWD $95 $95 # # # # # ## 04/09 CA -NV AWWA conf Santa Clara, CA $8 $148 $12 $168 # # # # # ## 04/09 Misc travel, parking Local $13 $13 $0 $276 Total GM $8 $0 $161 $95 $12 $276 $276 Total directors & GM $44 $271 $386 $387 $62 $1,150 $1,150 Assistant General Manager