Loading...
HomeMy WebLinkAbout2009-12-14 - Executive-Administrative-Organizational Committee Meeting Agenda Packet 'rb Linda Water District AGENDA YORBA LINDA WATER DISTRICT EXEC-ADMIN-ORGANIZATIONAL COMMITTEE MEETING Monday, December 14, 2009, 2:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director William R. Mills, Chair Ken Vecchiarelli, General Manager Director Michael J. Beverage 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. Ethics Policy Recommendation: That the Committee direct Staff to draft an ethics policy to be presented at a future Executive-Administrative-Organizational meeting and Board meeting for final approval. 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. 2009 Summary of EAO Committee Activities 3.2. 2010 Goals and Objectives 3.3. Board of Directors Committee Assignments 3.4. Customer Correspondence 3.5. Records Retention Policy 3.6. Citizens Advisory Committee Membership 3.7. OCWD Annexation 3.8. City of Yorba Linda and City of Placentia Sewers 3.9. Final Report on 2009 Legislative Bills 3.10. General Counsel's Monthly Summary Billing Report 3.11. Future Agenda Items and Staff Tasks 4. ADJOURNMENT 4.1. The next regular meeting of the Executive-Administrative-Organizational Committee will be held January 19, 2010 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: December 14, 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: No Prepared By: Pat Grady, Assistant General CEQA Compliance: N/A Manager Subject: Ethics Policy SUMMARY: At the August 27, 2009 regular meeting, the Board of Directors approved the District's Grand Jury responses. One of the findings and responses was related to ethics procedures and policies among the various water agencies. The District responded to this finding and committed to adopting a comprehensive ethics policy by February 2010. STAFF RECOMMENDATION: That the Committee direct Staff to draft an ethics policy to be presented at a future Executive- Administrative-Organizational meeting and Board meeting for final approval. DISCUSSION: Attached for the Committee's reference and review are two ethics policies from two other water agencies. Should the Committee direct Staff to prepare an ethics policy for Yorba Linda Water District, it is anticipated these sample policies will be used as a model. While Yorba Linda Water District currently has in place a Conflict-of-Interest Code, Staff will ensure that the proposed ethics policy will not conflict with other existing District policies. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approved the District's Grand Jury responses on August 27, 2009. ATTACHMENTS: Sample Ethics_Policies.PDF s=ample Ethics Policies Backup Material RESOLUTION NO. 2005-2-9 RESOLUTION OF THE INLAND EMPIRE UTILITIES AGENCY, A MUNICIPAL WATER DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ESTABLISHING RULES AND PROCEDURES RELATIVE TO THE CONDUCT OF MEMBERS OF THE BOARD OF DIRECTORS, EXECUTIVE MANAGERS AND AGENCY EMPLOYEES WHEREAS, the mission of the Agency is to supply imported and recycled water; collect, treat, and dispose of wastewater; and provide other utility-related services to the agencies it serves. The Agency strives to provide these services in a regionally planned, managed, and cost-effective manner which protects the public health and environment, and maintains a high level of public awareness; WHEREAS, the success of the Agency depends on teamwork, mutual trust and respect, and commitment to the highest standards of quality, responsibility, accountability, and dedication; WHEREAS, the Board of Directors, Executive Management and employees of the Agency are responsible for fulfilling the mission and values by demonstrating and expecting: • Loyalty, professionalism and ethical behavior, • Open and courteous communication with each other and with the communities served, • Prudent and cost - effective resource planning, management, and utilization, • Innovation in meeting the present and future needs of the Agency. WHEREAS, members of the Board of Directors, Executive Management and Agency employees should be dedicated to the highest standards of integrity and accountability while serving the public; WHEREAS, members of the Board of Directors, Executive Management and employees of the Inland Empire Utilities Agency are dedicated to earning and maintaining the trust, confidence and support of the public they serve; WHEREAS, the objective of the Board of Directors in adopting a formal ethics policy is to supplement state and federal law, and to provide guidance for dealing with ethical issues, and heighten awareness of ethical behavior; and, WHEREAS, the adoption of written guidelines regarding the ethical conduct of members of the Board of Directors, Executive Management, and Agency staff will provide a sound foundation on which to build public trust and confidence. NOW THEREFORE, the Board of Directors of the Inland Empire Utilities Agency* does hereby RESOLVE, DETERMINE, AND ORDER as follows: SOMEONE= Resolution No. 2005-2-9 February 16, 2005 Page 2 Section Subiect Matter Section 1. Policy Statement Section 2. Responsibilities of Public Services Section 3. Equal Treatment Section 4. Protection of Agency Resources, Property and Information Section 5. Confidential Information Section 6. Conflict of Interest Section 7. Post-Employment Relationships Section 8. Incompatible Offices Section 9. Gifts and Gratuities Section 10. Board Member - Executive Management - Employee Relationships Section 11. Political Contributions Section 12. RetaIiation/Whistleblowers Section 13. Conflict of Laws Section 14. Training and Education Section 15. Complaint Procedure Section 16. Violations and Penalties Section 17. Challenges to the Code of Ethics Section 18. Severability Section 19. Development of Policies and Procedures Section 1. Policy Statement. The policy of the Inland Empire Utilities Agency is to maintain the highest standards of ethics from its Board Members, Executive Managers and Agency employees and to assist Board Members, Executive Managers, and Agency employees with their decision making. The proper operation of the Agency requires decisions and policy to be made in the proper channels of governmental structure, that public office not be used for personal gain, and that all individuals associated with the Agency remain impartial and responsible towards the public to ensure public confidence in the decisions being made by the Agency. Accordingly, it is the policy of the Agency that Board Members, Executive Managers, and Agency employees shall maintain the highest standard of personal honesty and fairness in carrying out their duties. Section 2. Responsibilities of Public Service. Board Members, Executive Managers, and Agency employees are obligated to uphold the Constitution of the United States and the Constitution of the State of California, and to carry out the laws of national, state and local governmental agencies. Board Members, Executive Managers, and Agency employees shall comply with both the spirit and the letter of applicable laws regulating their conduct, including conflict of interest and financial disclosure laws. Board Members, Executive Managers, and Agency employees should work in full cooperation with other public officials unless prohibited from so doing by law or officially recognized confidentiality of their work. (a) Members of the Board of Directors, persons elected but who have not yet assumed office as a member of the Board, Executive Managers, and employees will fully comply with the provision of the state's open meeting law for Public Agencies (Brown Act). Resolution No. 2005-2-9 February 16, 2005 Page 3 (b) Members of the Board of Directors, Executive Managers, and employees must exercise their responsibilities, both professional and personal, above reproach and avoid even the appearance of impropriety. (c) Members of the Board of Directors, Executive Managers, and employees of the Agency shall perform their duties/responsibilities in accordance with these rules established by the Agency, state law, federal law, and/or regulation of state and federal agencies. Board Members, Executive Managers, and Agency employees shall refrain from abusive conduct, personal attacks upon the character or morals of other Board Members, Executive Managers, Agency employees, or members of the public. (d) Board Members, Executive Managers, and Agency employees shall not interfere with the proper performance of the official duties of others. Board Members, Executive Managers, and Agency employees are strongly encouraged to fulfill their own moral obligations to the public and the Agency by disclosing to the extent not expressly prohibited by law, improper activities within their knowledge. No Board Member, Executive Manager, or Agency employee shall directly or indirectly use or attempt to use the authority or influence of his or her position for the purpose of intimidating, threatening, coercing, commanding, or influencing any person with the intent of interfering with that person's duty to disclose improper activity. Section 3. Equal Treatment. (a) No Board Member, Executive Manager, or Agency employee shall grant any special consideration, treatment, or advantage to any person or group beyond that which is available to every other person or group in the same circumstances. (b) Board Members, Executive Managers, and Agency employees are prohibited from offering inducements to potential vendors, contractors, consultants, or other parties, to the exclusion of similar persons or firms, in hopes of obtaining reciprocal favors. Agency policies pertaining to the procurement of goods, services, and contractors, as well as the hiring of personnel, must be followed to ensure fairness to the participants. A Board Member, Executive Manager, or Agency employee shall not exercise any decision-making power with respect to any transaction, contract or sale to which the Agency is a party and in which the Board Member, Executive Manager, or Agency employee has a financial or personal interest. Proposed relationships with former Board Members, Executive Managers or Agency employees subject to Board approval must be evaluated carefully in advance of completing any agreement with such persons to ensure that no unfair advantage is given to them and that the Agency's interests are fully protected in such situations. (c) Board Members, Executive Managers, and Agency employees shall not, in the performance of their official functions, discriminate against any person on the basis of race, religion, color, creed, age, marital status, national origin, ancestry, sex, sexual preference, medical condition, or disability. Resolution No. 2005-2-9 February 16, 2005 Page 4 Section 4. Protection of Agency Resources, Property, and Information. (a) No Board Member, Executive Manager, or Agency employee shall use or permit the use of Agency-owned vehicles, equipment, computers, telephones, materials or property for personal convenience or profit. (b) No Board Member, Executive Manager, or Agency employee shall require or request an Agency employee to perform services for the personal convenience or profit of a Board Member, Executive Manager, or Agency employee. Each Board Member, Executive Manager, and Agency employee must protect and properly use any Agency asset within his or her control, including information recorded on paper or in electronic form. Using Agency assets for personal profit/use is forbidden. Board Members, Executive Managers, and Agency employees shall safeguard Agency property, equipment, monies, and assets against unauthorized use or removal, as well as from loss due to criminal act(s) or breach of trust. (c) Board Members, Executive Managers, and Agency employees are responsible for maintaining written records, including expense accounts, in sufficient detail to reflect accurately and completely all transactions and expenditures made on the Agency's behalf. Creating any Agency document with misleading or false information is prohibited. Section 5. Confidential Information. (a) Board Members, Executive Managers and Agency employees are not authorized, without approval of the Agency's General Counsel, to disclose information that qualifies as confidential information under applicable provisions of law to a person not authorized to receive said information, that (1) has been received for, or during, a closed session meeting of the Board, (2) is protected from disclosure under the attorney/client or other evidentiary privilege, or (3) is not required to be disclosed under the California Public Records Act and/or California Government Code. (b) Confidential information must not be released to unauthorized persons unless the disclosure is approved by the Board of Directors or the Office of the General Counsel. Board Members, Executive Managers, and Agency employees are prohibited from using any confidential information for personal advantage or profit. (c) This section does not prohibit any of the following: 1) Making a confidential inquiry or complaint to a district attorney or grand jury concerning a perceived violation of law, including disclosing facts to a district attorney or grand jury that are necessary to establish the alleged illegality of an action taken by the Agency, an elected official or employee. NEW Resolution No. 2005-2-9 February 16, 2005 Page 5 2) Expressing an opinion concerning the propriety or legality of actions taken by the Agency in closed session, including disclosure of the nature and extent of the allegedly illegal action. 3) Disclosing information acquired by being present in a closed session that is not confidential information. Prior to disclosing non- confidential information pursuant to (1) or (2) above, or pursuant to this section, however, a Board Member, Executive Manager or Agency employee will first bring the matter to the attention of the Agency's General Counsel to provide the Agency an opportunity to cure an alleged violation or to assure that said information is not confidential. 4) All individuals employed by the Agency in an Executive Management position, in the Executive Management Administrative Support Group, in the Human Resources Department, in the Information Services Department or in Records Management and the Public Information Officer and Board Secretary shall be required to sign an acknowledgement regarding their need to maintain confidentiality and the possible penalties for violating confidentiality. Section 6. Conflict of Interest. (a) No Board Member shall vote on a matter before the Board of Directors if he or she has any material interest (for purposes of this Section materiality shall be as defined in the Fair Political Practices Act, as amended from time to time), financial or otherwise, direct or indirect, or any obligation of any nature which is in conflict with the proper performance of his or her duties as a Board member. No Board Member shall participate in any discussion of a matter before the Board of Directors if he or she has any material interest, financial or otherwise, direct or indirect, or any obligation of any material nature which is in conflict with the proper performance of his or her duties as a Board Member. The Board Member shall disclose the full nature of the conflict on the records of the Board. The Board Member shall not participate in the discussion or vote on such issue that he/she has a material interest in. (b). Circumstances establishing a conflict of interest include but are not limited to, situations where: 1) The Board Member has a material financial or personal interest in the outcome of a matter before the Board, or is associated as an owner, member, partner, officer, employee, broker or material stockholder in an enterprise that will be affected by the outcome of a matter before the Board; 2). The Board Member has reason to believe or expects that he or she will receive, or a member of his or her immediate family will receive, a direct or indirect monetary gain or loss by reason of his or her participation in a matter before the Board; 011 z! Resolution No. 2005-2-9 February 16, 2005 Page 6 3). The Board Member is participating in a decision affecting a person, vendor, contractor, firm, consultant or organization while seeking employment with that same person or entity; 4). The Board Member has a prohibited interest as defined by Government Code sections 1090, et seq. and the Political Reform Act, Government Code Section 81000 et seq., relating to conflicts of interest including, but not limited to contractual, relationships, employment or other sources of income. (c) Board Members shall refrain from voting on or otherwise influencing matters involving any person with whom the member is negotiating for, or has accepted, future employment, or with whom the member has, or is negotiating for, a direct or indirect ownership interest or business relationship. Nothing in the foregoing shall apply to the member's non-controlling interest in a publicly held entity. Board Members are prohibited from recommending the employment of a relative by the Agency. In addition, a Board Member is prohibited from recommending the employment of a relative to any person known by the Board Member to be bidding for or negotiating a contract with the Agency. (d) No requirement or guideline contained in this Section shall supersede the Agency's Conflict of Interest Resolution and/or applicable state or federal law. (e) No conflict shall exist if a Board Member votes on a rate increase or tax level that effects all members of a class in the same manner as it will effect the Board Member and/or a member of his/her immediate family. Section 7. Post-Employment Relationships. For a period of one year after leaving office or employment with the Agency: (a) Former Board Members shall not represent for compensation any non-governmental entity before the Agency, except as provided for in Section E hereof. (b) Former Executive Managers and employees of the Agency shall not represent for compensation any non-governmental entity before the Agency with regard to any issues over which that Executive Manager or employee had decision- making authority during the one year prior to leaving office or employment, except as provided for in Section E hereof. (c) For purposes of this Section, "represent" shall mean for compensation to actively support or oppose a particular decision in a proceeding by lobbying in person the Executive Managers or employees of the Agency, testifying in person before the Agency, or otherwise acting to influence the employee or Board of Directors of the Agency. Resolution No. 2005-2-9 Page 7 (d) These restrictions shall not apply to representation of not-for-profit charitable entities or government entities before the Agency. (e) The Agency may not contract with former Board Members, Executive Managers or Agency employees or with businesses where the former Board Member, Executive Manager or Agency employee serves as an officer, principal, major shareholder or has been identified as a key personnel, unless approved by a majority vote of the Board of Directors at a regularly scheduled meeting of the Board. Section 8. Incompatible Offices. Any Board Member, Executive Manager, or Agency employee being considered for appointment or election to a public office of another public entity, the duties of which may require action contrary or inconsistent with the interest of the Agency, may request an opinion from the Attorney General of the State of California or the California Fair Political Practices Commission, whichever may be applicable as to the compatibility of the offices. Section 9 Gifts and Gratuities. No Board Member, Executive Manager, or Agency employee, shall receive or agree to receive, directly or indirectly, any compensation, reward, honoraria or gift from any source except from his or her employer, for any action related to the conduct of the Agency's business, except as set forth in Agency Policy A-28. Section 10. Board Member- Executive Manacier/Employee Relationship. (a) Except for statements on the record in a scheduled public meeting, Board Members shall not directly or indirectly communicate with the Chief Executive Officer/General Manager, General Counsel, Internal Auditor (or their staffs) regarding the selection of specific vendors, contractors, consultants, or other business entities for a specific procurement of goods or services. (b) This policy in no way restricts open communication between Board Members and the Chief Executive Officer/General Manager, General Counsel, or Internal Auditor on Agency-wide procurement policies, procedures, or other general matters. (c) Board Members will provide policy direction and instructions to the Chief Executive Officer/General Manager on matters within the authority of the Board of Directors by a majority vote of the Board during a duly convened meeting of the Board and/or Board Committee meetings. (d) Board Members will address matters within the authority of the Chief Executive Officer/General Manager through the Chief Executive Officer/General Manager and not directly through Agency staff. Board Members are not to directly request analyses by Agency staff, perform work assignments or change the priority of work assignments. Board Members may request non-confidential, factual information Resolution No. 2005-2-9 Page 8 regarding Agency operations directly from Agency staff. Agency staff are to advise the Chief Executive Officer/General Manager of all requests received by them from a Board Member within 48 hours of the request. Section 11. Political Contributions. (a) Board Members, Executive Managers, and Agency employees are prohibited from soliciting political funds or contributions at Agency facilities on Agency time or while representing the Agency. (b) No Board Member, Executive Manager, or Agency employee shall use the Agency's seal, trademark, stationary, or other indicia of the Agency's identity, or facsimile thereof, in any solicitation for political contributions. Section 12. Retaliation/Whistleblowers. The Agency is committed to providing its officials, employees and members of the public with a protective work environment that encourages individuals to report alleged violations of state and/or federal rules, regulations and laws or Agency policies without fear of retaliation. To that end, a Retaliation Free Workplace policy has been implemented (A-103). Section 13. Conflict with Laws. In the event of a conflict between the contents of this Resolution and state and/or federal law/regulations, the appropriate state and/or federal law/regulations shall be the presiding document. Section 14. Traininq & -Education. All Board Members, Executive Managers and Department Managers of the Agency shall receive ethics training and refresher training on appropriate Agency policies (i.e.; gifts, retaliation, discrimination, harassment, etc.) as soon as practical following the General Election where Board Members are elected. In the event that a Board Member is seated mid-term, said Board Member shall receive from the Agency's General Counsel a tutorial on all relevant laws/regulations/policies (i.e.; conflict of interest, the Brown Act, Agency's ethics policy, etc.) within 15 calendar days of being elected or appointed to the Board of Directors. Section 15. Complaint Procedure. (a) Concerns regarding a Board member's, Executive Manager's, contractor's, consultant's or vendor's ethical behavior should be reported immediately to the Agency's General Counsel. Concerns regarding an employee's ethical behavior should be immediately reported to the Manager of Human Resources & Support Services. The ethics complaint process should be used for allegations of intentional or negligent non-compliance with this Resolution, state or federal law or Agency policies. (b) All information relating to verbal and written complaints and investigation materials will be kept strictly confidential to the extent permitted by law. I j, Resolution No. 2005-2-9 Page 9 (c) Where practical, all complaints should be submitted in writing with substantiating' documentation or through the Agency's Ethics/Fraud hotline. While complaints may be submitted anonymously, individuals are strongly encouraged to identify themselves, as this will facilitate follow-up and investigation regarding the complaint. (d) All complaints received by General Counsel or the Manager of Human Resources & Support Services regarding ethical or possible illegal behavior will be reviewed by the Agency's General Counsel and where deemed appropriate, by General Counsel, will have an investigation commenced within 15 calendar days of receipt. If practical all investigations into complaints will be completed within 60 calendar days of commencement of the investigation. (e) Unless it is necessary as part of the investigation to communicate with the Board of Directors, Executive Manager or employee, or as provided for in Section 15.f, no Board Member, Executive Manager or employee is to be advised that an investigation is being conducted. (f) Upon completion of the investigation, General Counsel will find the complaint to be unsubstantiated, to be mistaken, to be malicious, or find that non- compliance has occurred. If a finding of non-compliance has occurred involving members of the Board of Directors or Executive Management, General Counsel will recommend appropriate action to the full Board of Directors, as permitted by the Brown Act. If a finding of non-compliance has occurred involving an Agency employee, General Counsel will recommend appropriate action to the Manger of Human Resources & Support Services. In instances where the finding is that an employee of the Agency filed a malicious complaint, General Counsel will recommend appropriate action to the Manager of Human Resources & Support Services against the complaining employee. (g) if a finding of non-compliance has occurred involving a contractor, consultant, or vendor, General Counsel will forward a copy of the investigation to the appropriate law enforcement agency. (h) All records of complaints filed against a Board Member, Chief Executive Officer/General Manager, or a member of Executive Management are to be kept in a locked file in the Office of the Agency's General Counsel. All records of complaints filed against an Agency employee are to be kept in a locked file in the Office of the Manager of Human Resources & Support Services. Section 16. Violations and Penalties. A violation of this Resolution may be addressed by the use of such remedies as are available by law to the Agency, including but not limited to, adoption of a resolution expressing disapproval of the conduct of a Resolution No. 2005-2-9 Page 10 Board Member who has violated this Resolution, injunctive relief, or referral of the violation to the San Bernardino County District Attorney or grand jury. In the instance where an employee of the Agency violates the provisions of this Resolution, appropriate disciplinary action shall be imposed as provided for in the respective personnel manual, up to and including termination. Section 17. Challenges to the Code of Ethics. A violation of this Resolution shall not be considered a basis for challenging the validity of a Board action, unless said violation is also a violation of state or federal law which would invalidate the Board's action. Section 18. Severability. If any section, subsection, subdivision, sentence, clause or phrase of this Resolution is for any reason held to be unconstitutional or otherwise invalid, such invalidity shall not affect the validity of the entire Resolution or any of the remaining portions thereof. The Inland Empire Utilities Agency's Board of Directors hereby declares that they would have passed this Resolution, and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that any one of more sections, subsections, subdivisions, sentences, clauses or phrases are declared unconstitutional or otherwise invalid. Section 19. Development of Policies and Procedures. The Chief Executive Officer/General Manager is hereby authorized to develop policies and procedures necessary to administer this Resolution. ADOPTED this 16th day of February, 2005 (Ce P Ogenc~ Inland Empire d of the Board d 1tiey* an of Directors thereof ATTEST: Secretary of the Inland Empire Utilities Agency* and the Board of Directors thereof *A Municipal Water District Ni IN Cucamonga Valley Water District POLICY A PROCEDURE _A=_ APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 1 of 12 PURPOSE AND SCOPE The Cucamonga Valley Water District's Mission Statement reads as follows: "TO PROVIDE HIGH-QUALITY, SAFE AND RELIABLE WATER AND WASTEWATER SERVICES WHILE PRACTICING GOOD STEWARDSHIP OF NATURAL AND FISCAL RESOURCES". CVWD is also dedicated to the highest ideals of integrity and accountability to earn the trust and confidence of the public we serve. The proper operation of the District requires that decisions and policy are made within the appropriate channels of governmental structure, that public office not be used for personal gain, and that Board members and employees remain objective and responsive to the needs of public they serve. As a public agency, its officials must carry out their fiduciary duties of responsibility and accountability to the public it serves as well. Cucamonga Valley Water District's Board members and employees are dedicated to preserving the public trust, and have developed this ETHICS POLICY to establish the basic ethical standards of conduct and accountability which Board members and employees are expected to adhere to while conducting the public's business. This policy also serves to: • Provide guidance for dealing with ethical issues, • Heighten awareness of ethics and values as critical elements in Board members'/designated employees' conduct, • Improve ethical decision-making and values based management, and • Provide a standard by which conduct will be judged. Most of the guidelines covered in this policy reflect the requirements of existing law (legal citations are noted). However, it is the District's intent that the items addressed in this policy be considered as supplemental to present State and Federal Laws, and are in no way intended to supersede those laws. RESPONSIBILITIES OF PUBLIC OFFICE/PUBLIC SERVICE Board members and employees will comply with all applicable laws regulating their conduct including, but not limited to, Conflict of Interest, financial disclosure, and open government laws. Board members and designated employees will strive to work Cucamonga Valley Water District POLICY AND PROCEDURE APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 2 of 12 cooperatively with other public officials and the public unless prohibited from doing so by law or officially-recognized confidentiality of their work. It is the spirit of this policy to expect all employees, and members of the Board, to conduct themselves both professionally and personally in a manner above reproach and to avoid the appearance of impropriety. - (Government Code Section 1360; Article 20, Section 3 of the California Constitution) FAIR AND EQUAL TREATMENT Board members and employees will not grant any special consideration, treatment or advantage to any person or group beyond that which is available to every other person or group in similar circumstances. Board members and employees in the performance of their official duties and responsibilities, will not discriminate against or harass any person on the basis of race, religion, color, creed, age, marital status, national origin, ancestry, gender, sexual orientation, medical condition or disability. The intent of District Policy 4.5 is to ensure an environment for all employees which is fair, humane, and respectful. (Article 1, Section 31 of the California Constitution; Age Discrimination in Employment Act of 1967 (U.S.C. Section 621-634); Americans with Disabilities Act of 1990 (42 U.S. C. Section 12101 et. Seq.); Fair Employment and Housing Act (Government Code, Section 12900 et. Seq.); Rehabilitation Act of 1973 (29 US. C., Section 701 et. Seq.); Title VII of the Civil Rights Act of 1964 (42 U.S. C. Section 2000e et. Seq.); Labor Code Section 1102.) PROPER USE AND SAFEGUARDING OF DISTRICT PROPERTY AND RESOURCES A. Board members and employees will not use or permit the use of District owned vehicles, equipment, telephones, materials or property for personal benefit or profit. B. Board members and employees will not ask or require a District employee to perform services for the personal benefit or profit of a Board member or employee. Each Board member and employee must protect and properly use any District asset within his or her Cucamonga Valley Water District POLICY A PROCEDURE G APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 3 of 12 control, including information recorded on paper or in electronic form. Board members and employees will also safeguard District property, equipment, moneys and assets against unauthorized use or removal, as well as from loss due to criminal acts or breach of trust. C. Board members and employees responsible for maintaining written records, including expense accounts, shall maintain such records in sufficient detail to reflect accurately and completely all transactions and expenditures made on the District's behalf. Creating any District document with misleading or false information is prohibited. (Article 16, Section 6 of the California Constitution, Government Code Section 8314; Penal Code Section 424). CONFIDENTIAL INFORMATION A. A Board member or employee is not authorized, without approval of legal counsel, to disclose information that qualifies as confidential information under applicable provisions of law to a person not authorized to receive it, that (1) has been received for, or during, a closed session meeting of the Board, (2) is protected from disclosure under the attorney/client or other evidentiary privilege, or (3) is not required to be disclosed under the California Public Records Act or the California Government Code. B. This section does not prohibit any of the following: (1) making a confidential inquiry or complaint to a district attorney or grand jury concerning a perceived violation of law, including disclosing facts to a district attorney or grand jury that are necessary to establish the alleged illegality of an action taken by the District, an elected official, or employee, (2) expressing an opinion concerning the propriety or legality of actions taken by the District in closed session, including disclosure of the nature and extent of the allegedly illegal action, or (3) upon consultation with legal counsel, disclosing information acquired by being present in a closed session that is not confidential information. Prior to disclosing confidential information pursuant to this section, a Board member will first bring the matter to the attention of either the President of the Board, and the General Manager/CEO or the full Board and the General Manager/CEO, to provide the Cucamonga Valley Water District POLICY A PROCEDURE APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 4 of 12 Board an opportunity to cure an alleged violation or to assure that said information is not confidential. C. A Board member who willfully and knowingly discloses for pecuniary gain confidential information received by him or her in the course of his or her official duties financial or economic gain may be guilty of a misdemeanor under Government Code Section 1098. (California Government Code Section 54963). CONFLICT OF INTEREST A. No requirement or guideline contained in this Section shall supersede the District's Conflict of Interest Code and/or applicable state or federal law. B. Board members and designated employees will not have a financial interest in a contract with the District, or be a purchaser at a sale by the District or a vendor at a purchase made by the District, unless the Board member's participation was authorized under Government Code Section 1091 or 1091.5 or other provisions of law. A Board member will not participate in the discussion, deliberation or vote on a matter before the Board of Directors, or in any way attempt to use his or her official position to influence a decision of the Board, if he or she has a prohibited interest with respect to the matter, as defined in the Political Reform Act, Government Code Sections 81000, and following, relating to conflicts of interest. Generally, a Board member has a financial interest in a matter if it is reasonably foreseeable that the Board decision would have a material financial effect (as defined by the Fair Political Practices Commission [FPPC] regulations) that is distinguishable from the effect on the public generally based upon the following grounds: (1) business entity in which the Director has a direct or indirect investment in the amount specified in FPPC regulations; (2) real property in which the Director has a direct or indirect investment interest with a worth in the amount specified in FPPC regulations; Cucamonga Valley Water District POLICY AN PROCEDURE APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 5 of 12 (3) a source of income of the Director in the amount specified in FPPC regulations, within 12 months before the Board decision; (4) a source of gifts to the Director in an amount specified in FPPC regulations within 12 months before the Board decision; or (5) a business entity in which the Director holds a position as a director, trustee, officer, partner, manager or employee. An "indirect interest" means any investment or interest owned by the spouse or dependent child of the Board members and designated employees, by an agent on behalf of the Board member, or by a business entity or trust in which the Board member, or the Board member's spouse, dependent child or agent, owns directly, indirectly or beneficially a 10 percent interest or greater. A Board member or designated employee will not accept honoraria, or gifts that exceed the limitations specified in the Fair Political Practices Act or FPPC regulations. Board members and designated employees will report all gifts, campaign contributions, income and financial information as required under the District's Conflict of Interest Code and the provisions of the Fair Political Practices Act and FPPC Regulations. (Government Code Sections 87100 and following.) C. If a member of the Board believes that he or she may be disqualified from participation in the discussion, deliberations or vote on a particular matter due to a conflict of interest, the following procedure will be followed: (1) if the Director becomes aware of the potential conflict of interest before the Board meeting at which the matter will be discussed or acted on, the Director will notify the District's General Manger/CEO and the District's legal counsel of the potential conflict of interest, so that a determination can be made whether it is a disqualifying conflict of interest; (2) if it is not possible for the Director to discuss the potential conflict with the General Manager/CEO and legal counsel before the meeting, or if the Director does not become aware of the potential conflict until during the meeting, the Director will immediately disclose the potential conflict during the Board meeting, so that there can be a determination whether it is a disqualifying conflict of interest; and Cucamonga Valley Water District POLICY A P OC U APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 6 of 12 (3) upon a determination that there is a disqualifying conflict of interest, the Board member (a) will not participate in the discussion, deliberation or vote on the matter for which a conflict of interest exists, which will be so noted in the Board minutes, and (b) leave the room until after the discussion, vote and any other disposition of the matter is concluded unless the matter has been placed on the portion of the agenda reserved for uncontested matters. The Board member may speak on an uncontested matter during the time the general public speaks on the issue. D. A Board member will not recommend the employment of a relative by the District. A Board member will not recommend the employment of a relative to any person known by the Board member to be bidding for or negotiating a contract with the District. E. A Board member or designated employee who knowingly asks for, accepts or agrees to receive any gift, reward or promise thereof for doing an official act, except as may be authorized by law, may be guilty of a misdemeanor under Penal Code Section 70. (Government Code Sections 1090 and following, 81000 and following, and 87105; Penal Code Sections 68 and 70). SOLICITING POLITICAL CONTRIBUTIONS Board members are prohibited from soliciting political funds or contributions at District facilities or from District employees. A Board member will not accept, solicit or direct a political contribution from: A. District employees, officers, consultants or contractors used by the District in the past 12 months, or B. Vendors of consultants who have a material financial interest in a contract or other matter while that contract or other matter is pending before the District. A Director will not use the District's seal, trademark, stationery or other indicia of the District's identity, or facsimile thereof, in any solicitation for political contributions contrary to State or Federal law. (Government Code Section 3205) A Cucamonga Valley Water District POLICY A PROCEDURE _~,A APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 7 of 12 INCOMPATIBLE OFFICES Any Board member appointed or elected to a public office of another public entity, the duties of which may require action contradictory or inconsistent with the interests of the first entity (as determined under applicable law) will resign from the former office. (See, generally, 73 Cal.Op.Atty.Gen. 357 (1990); Government Code Section 53227 under which an employee of a special district may not be sworn into office as an elected or appointed member of the Board of the same special district unless he or she resigns as an employee). BOARD MEMBER - GENERAL MANAGER/CEO RELATIONSHIP A sound working relationship between the Board and management is essential to the success of a public agency. The District has adopted a Board of Director's handbook which specifically addresses the roles and responsibilities of the Board of Directors and the General Manager/CEO. A. The Board of Directors establishes policies that guide the District to meet its mission. B. The role of the General Manager/CEO is to manage and administer the District's daily operations in accordance with the policies approved by the Board. The District's General Manager/CEO serves at the pleasure of the Board. The Board will provide policy direction and instructions to the General Manager/CEO on matters within the authority of the Board by majority vote of the Board (unless a greater number of votes is required by law for a particular matter) during duly-convened Board and Board committee meetings. Members of the Board will deal with matters within the authority of the General Manager/CEO through the General Manager/CEO and not through other District employees, except as it pertains to the functions of the District Treasurer. Members of the Board will refrain from making requests directly to District employees rather than to the General Manager/CEO) to undertake analyses, perform other work assignments or change the priority of work assignments. Members of the Board may request non-confidential, factual information regarding District operations from District employees. I A Cucamonga Valley Water District POLICY AND PROCEDURE APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 8 of 12 C. An auditor as an independent contractor of the District will be retained by the Board, and will conduct an annual audit of the District's books, records, and financial affairs. (Water Code Sections 30580 through 30582) IMPROPER ACTIVITIES AND REPORTING OF SUCH ACTIVITIES; PROTECTION OF "WHISTLE BLOWERS" A. The General Manager/CEO has primary responsibility for (1) ensuring compliance with the District's Personnel Manual and ensuring that District employees do not engage in improper activities. (2) investigating allegations of improper activities, and (3) taking appropriate corrective and disciplinary actions. The Board has a duty to ensure that the General Manager/CEO is operating the District according to law and the policies approved by the Board. Board members are encouraged to fulfill their obligation to the public and the District by disclosing to the General Manager/CEO to the extent not expressly prohibited by law, improper activities within their knowledge. Board members will not interfere with the General Manager/CEO's responsibilities in identifying, investigating, and correcting improper activities unless the Board determines that the General Manager/CEO is not properly carrying out these responsibilities. B. A Board member or employee will not directly or indirectly use or attempt to use the authority or influence of his or her position for the purpose of intimidating, threatening, coercing, commanding or influencing any other person for the purpose of preventing such person from acting in good faith to report otherwise bring to the attention of the General Manager/CEO or the Board any information that, if true, would constitute: a work-related violation by a Board member or District employee of any law or regulation, gross waste of District funds, gross abuse of authority, a specified and substantial danger to public health or safety due to an act or omission of a District official or employee, use of a District office or position or of District resources for personal gain, or a conflict of interest of a District Board member or designated employee. C. A Board member or employee will not use or threaten to use any official authority or influence to effect any action as a reprisal against a District Board member or District Cucamonga Valley Water District POLICY A PROCEDURE APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 9 of 12 employee who reports or otherwise brings to the attention of the General Manager/CEO any information regarding the subjects described in this section. (Labor Code Section 1102.5 and following; Government Code Sections 53298 and 53298.5) COMPLIANCE WITH THE BROWN ACT The members of the Board of Directors, and persons elected but who have not yet assumed office as members of the Board will fully comply with the provisions of the State's open meeting. law for public agencies (the Brown Act). Each year, District's Legal Counsel prepares a synopsis of changes to the Brown Act. This synopsis, as well as a copy of the Act, are distributed annually to each Director. (Government Code Sections 54950 and following, and 54952.1 and 54959) DIRECTORS COMPENSATION AND EXPENSE REIMBURSEMENT A. Under Section 20200 of the Water Code, board members are allowed compensation for each day's service rendered as a Board member. Section 20202 of the Water Code limits compensation to no more than a total of 10 days in any calendar month; and limits increases to a maximum of 5% each year. In accordance with the Water Code, District Ordinance 40 was adopted in May of 1990 and creates a framework for establishing Directors compensation as well as a mechanism for future increases. B. In addition to compensation at a daily rate consistent with applicable law for each day of service rendered as a member of the Board; Board members are allowed reimbursement for reasonable and necessary expenses related to meals, lodging and travel expenses incurred in attending any conference, meeting, or approved event. District Policy 9.2 establishes uniform policies and procedures for such reimbursement. Reporting of Expenses Under Government Code Section 53065.5: The District is required at least annually, to disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100.00 for each individual charge for Cucamonga Valley Water District POLICY AND PROCEDURE APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 10 of 12 services or product received. "Individual charge" includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee paid to any District employee or member of the Board of Directors of the District. The disclosure requirement must be fulfilled by including the reimbursement information in a document published or printed at least annually by a date determined by the District and must be made available for public inspection. The calculation of whether an expense reimbursement amounts to $100.00 or more is to be made on a day-to-day basis. Therefore, the reporting of an expense reimbursement need not be made if there is no expense reimbursement of $100.00 or more for one meal, or one day's hotel or any other one day individual charge for which any director, officer or employee receives reimbursement from the District. The reimbursements that need to be disclosed are those that are paid within the immediately preceding fiscal year. This law only requires disclosure of expenditures incurred by the employee/director and then reimbursed by the District. The reporting requirement does not require the District to disclose expenditures paid directly by the District. However, the extent of the legislation would also seem to encourage disclosure of those expenditures paid directly by the District that are of the same type as expense account reimbursements. The District may elect to take this more conservative approach at any time in the future. Statement for Compliance with Reporting Requirements: The District should compile on a worksheet all of the qualifying reimbursements (day-to-day expenses that have been reimbursed and which amount to $100.00 or more). Once this worksheet is printed/published (i.e. filled out, printed, etc.) then the District should place the document in a District file and make it available for inspection or copying upon request. It is recommended that this document also be included in agenda packets for Board meetings on, for example, a quarterly basis. C. In connection with all issues arising out of compensation and expenses, it is helpful for Board members and designated employees to pose this series of questions. • Does the law allow me to use public resources in this manner? • How does this particular expenditure benefit the public's interest as opposed to my own personal interest? • Is my motivation for an expense a desire to personally curry favor with the would-be beneficiary of an expense? • How would I feel if a particular expenditure were reported in the local newspaper? How about a political hit piece? Cucamonga Valley Water District POLICY A PROCEDURE - A, APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 11 of 12 ® How would my next door neighbor feel about my spending his or her tax dollars this way? Would he or she feel resentful? ® Am I making a spending decision out of a sense of reward or entitlement? CHANGES IN COMPENSATION Changes in compensation of Board members will require the approval of the Board during an open meeting of the Board held at least 60 days prior to the effective date of the change and shall be subject to the following requirements set forth in Water Code Section 20200 et seq. A. Notice of a public hearing on a proposed ordinance to change the compensation shall be published in a newspaper of general circulation once a week for at least two weeks prior to the Board meeting. B. Following the public hearing, the Board may consider adoption of an ordinance to increase the compensation received by Board members. Such an increase may not exceed an amount equal to 5% for each calendar year following the operative date of the adjustment. C. Such an ordinance shall become effective 60 days from the date of its passage. (Water Code Sections 20200 and following) CANDIDATE'S STATEMENT A board member will not include false or misleading information in a candidate's statement for a general District election filed pursuant to Section 13307 of the State Elections Code. (Elections Code Section 13313). Cucamonga Valley Water District POLICY AN PROCEDURE APPROVAL DATE MANUAL POLICY NO. 8/14/2007 EMPLOYEE PERSONNEL MANUAL 4.4.1 APPROVED BY POLICY TITLE EFFECTIVE DATE 8/14/2007 Board of Directors ETHICS POLICY Page 12 of 12 VIOLATION OF ETHICS POLICY A perceived violation of this policy by a Board member should be referred to the President of the Board or the full Board of Directors for investigation by the District's legal counsel or designated representative, and consideration of any appropriate action warranted. A violation of this policy may be addressed by the use of such remedies as are available by law to the District, including, but not limited: (a) adoption of a resolution expressing disapproval of the conduct of the Board member who has violated this policy, (b) injunctive relief, or (c) referral of the violation to the District Attorney and/or the Grand Jury. TRAINING All Board members and management staff will receive ethics training and a refresher training on appropriate policies (gifts, retaliation, discrimination, harassment, etc) as soon as practical following the General Election where Board members are elected. In the event that a Board Member is seated mid-term, said Board members hall receive a tutorial on all relevant laws/regulations/policies (conflict of interest, Brown Act, the District's ethics policy) within 15 calendar days of being elected or appointed to the ITEM NO. 3.5 AGENDA REPORT Meeting Date: December 14, 2009 Budgeted: Yes Total Budget: $10,000 To: Executive-Administrative- Cost Estimate: $4,000 Organizational Committee Funding Source: All Funds From: Ken Vecchiarelli, General Manager Presented By: Pat Grady, Assistant General Dept: Administration Manager Prepared By: Pat Grady, Assistant General Manager Subject: Records Retention Policy SUMMARY: Staff, with the assistance of a consultant, is in the process of updating and revising the District's records retention policy, which was last updated in 1995. DISCUSSION: A consultant was hired to update the District's existing records retention policy. With the implementation of Laserfiche (electronic imaging retrieval system) and an existing outdated policy from 1995, the timing is appropriate for a review and update. Staff is in the process of reviewing the retention schedules developed by the consultant and will be formalizing a new policy for Board consideration by February or sooner. PRIOR RELEVANT BOARD ACTION(S): None. ITEM NO. 3.9 AGENDA REPORT Meeting Date: December 14, 2009 Subject: Final Report on 2009 Legislative Bills ATTACHMENTS: MKB - Legislative Report.pdf _egislative Bills Report Report(s) MCCORMICH. KIDMAN & BEHRENS, LLP RECEIVED LAWYERS 650 TOWN CENTER DRIVE NOV I H. L. 1MIKE1 MCCORMICK•• SUITE 100 IV y 2~~9 ARTHUR G. KIDMAN• RUSSELL O. BEHRENS• COSTA MESA. CALIFORNIA 92626 SUZANNE M. TAOUE•T TELEPMONES 17141 755-3100 YOR®AUNDAL"JttTERDISMCT DAVID D. BOYER• [8001 755-3125 DANIEL J. PAYNE• JOAN J. SENNETT FAX 17141 755-3110 EDDY R. BELTRAN www.mkbiawyers.com TRAM T. TRAN JOHN P. GLOWACKI LAURIE S. PARK •A PROFESSIONAL CORPORATION TCERTIFIED SPECIALIST - PROBATE November 18 2009 ESTATE PLANNING A TRUST LAW THE STATE BAR OF CALIFORNIA BOARD OF LEGAL SPECIALIZATION "OF COUNSEL MEMORANDUM i Tn WATFR s nENrv C" r7 EE N T S FROM McCormick, Kidman & Behrens, LLP RE Final Report on 2009 Legislative Bills Enclosed please find the Final Legislative Report for the 2009 legislative session of the California Legislature. This report also includes summaries of each of the five bills enacted in a special legislative session on water resources this month. The special session legislation is discussed in Section A of the report. The report organizes bills according to general subject matter and includes a table of contents and an index by bill number. With respect to the bills we have reported on in our prior reports, the report shows (1) the chapter number of each bill that was enacted, (2) the bills which were vetoed and the reason for the veto, and (3) bills that died in the Legislature since our last report. If the Legislature revives or reintroduces any dead bills, we will include them in our first 2010 report. As always, we have access to bill text and other information and are available to provide details or analysis, or answer any questions you may have on this or other legislation. McCORMICK, KIDMAN & BEHRENS, LLP r ~ R !SID AGKIERB MCCORAIICK, KIDX4l\T & BEHRENS, LLP LAWYERS 650 TOWN CENTER DRIVE SUITE 100 COSTA MESA, CALIFORNIA 92626-7198 TELEPHONES (714) 755-3100 (800) 755-3100 FAX (714) 755-3110 www.nikbiaMm.cam FINAL 2009 LEGISLATIVE REPORT TABLE OF CON EP'NTS , A. SPECIAL SESSION WATER LEGISLATION 1 B. DROUGHT, WATER CONSERVATION & WATER RATIONING 5 C. WATER RESOURCES MANAGEMENT & WATER PROJECTS 6 D. INFRASTRUCTURE FINANCING 6 E. EMINENT DOMAIN 7 F. PUBLIC OFFICIALS & ETHICS 7 G. BROWN ACT & PUBLIC RECORDS 7 H. LABOR, EMPLOYMENT & BENEFITS 7 I. PUBLIC WORKS & CONTRACTS 8 J. WATER SUPPLY & LAND DEVELOPMENT 8 K. WATER QUALITY & WATER POLLUTION 9 L. ENVIRONMENTAL QUALITY & ENDANGERED SPECIES 9 M. SPECIFIC AGENCIES AND/OR PROJECTS 10 N. LAFCO .............................................................................................................................10 0. PROPERTY TAX ALLOCATION; REVENUE AND COLLECTION PROCEDURES 10 P. BILLING & REVENUE PROCEDURES 10 INDEX ..........................................................................................................................................11 AICCORMICIy K1DNL-kN & BEHRENs, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 18, 2009 A. SPECIAL SESSION WATER LEGISLATION A.1 SB X71 (Simitian/Steinberg) Public resources: Delta Governance and the Delta Plan Under existing law, Delta decisions are divided among dozens of state and federal agencies. This bill establishes a new overriding Delta policy of "coequal goals": California water supply reliability and Delta ecosystem protection and restoration. It creates a new governance structure that centralizes Delta-related decision making authority. Delta Stewardship Council: This bill places the ultimate authority for Delta decision making under the umbrella of a new seven-member Council. The Council's membership shall "reflect a statewide perspective." Governor Schwarzenegger will appoint four members, subject to Senate confirmation. The Senate Committee on Rules and the Speaker of the Assembly will each appoint one member. The final member shall be the Chairperson of the Delta Protection Commission. The Council's mandate is to promote the newly-declared "co-equal goals" of water supply management and environmental stewardship. Delta Plan: The Council will oversee the creation and implementation of a comprehensive new "Delta Plan" balancing the coequal goals. State and local projects in the Delta must comply with the Delta plan. The Council is authorized to determine compliance and may reverse noncompliant projects. The Delta Plan will incorporate the final Bay Delta Conservation Plan (BDCP), if the BDCP complies with certain environmental statutes. By incorporating the BDCP, the Delta Plan could lay the groundwork for Peripheral Canal construction, since environmental analysis of new conveyance is occurring as part of the BDCP process. Delta Protection Commission: This bill reduces the Commission's membership from 23 to 15. It recasts the Commission's role, requiring it to adopt and regularly amend a Delta economic sustainability plan with input from specified Delta interests. The Commission must submit the economic sustainability plan to the Council for inclusion in the Delta Plan. Delta Conservancy: The bill would establish this new Conservancy in the Natural Resources Agency. It would be the primary state agency to identify and implement programs to restore the Delta ecosystem. The conservancy would be required to use conservation easements to accomplish ecosystem restoration whenever feasible, to be paid for by a new fund. ACWA Position: Support Status: Chaptered (Stats.2009 ch. 5 (7th Extra. Sess.)) 1 MCCORMICK, KIDINLAN & BEHRENS, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 18,2009 A.2 SB X7 2 (Cogdill) Safe, Clean, and Reliable Drinking Water Supply Act of 2010 The Legislature approved a measure to issue $11.1 billion in general obligation bonds. Voters will consider the measure in November 2010. The bonds would pay for a host of local and regional environmental and water supply projects but would not fund a Peripheral Canal. Instead, wholesalers (and ultimately, ratepayers) would fund construction. The Metropolitan Water District of Southern California estimates that Peripheral Canal construction would cost $6 to $12 billion. Other estimates are much higher. If approved by voters, the bond issue will allocate funds in the following manner: 1. Water Storage ($3 billion). These funds will be available to construct the following: (a) five specific surface storage projects identified by CALFED, (b) groundwater storage and groundwater quality projects, (c) conjunctive use and reservoir reoperation projects, and (d) local and regional surface storage projects. 2. Delta Sustainability ($2.25 billion). These funds will be used to maintain and restore the Delta ecosystem, to increase the Delta's economic sustainability, and for seismic retrofitting of Delta levees. 3. Watershed Conservation ($1.785 billion). Matching funds will be made available to localities for ecosystem and watershed protection. The funds are earmarked for specific watersheds; e.g., $250 million for coastal counties, and $100 million for the San Gabriel River, Los Angeles River, and Santa Monica Bay watersheds. Examples of other earmarks include $100 million for Salton Sea restoration and $20 million for Bolsa Chica Wetlands restoration. 4. Regional Water Supply ($1.4 billion). Just over $I billion of this money would be made available for local and regional water supply and water quality projects that reduce dependence on imported water. It would supplement funds generated from previous bond issues and would be made available within existing distribution programs. Each region of the state would receive a set allocation of funds. The largest allocations are reserved for the Los Angeles subregion ($198 million) and the Santa Ana subregion ($128 million). It also separately earmarked $350 million to fund local and regional conveyance projects. 5. Water Recycling and Water Conservation ($1.25 billion). $1 billion will fund water recycling, including desalting and other advanced treatment technology. The remainder will be available for conservation plans, projects, and programs, including those assisting urban users in achieving water conservation targets. 2 McConiICK, KIDAiAN & BEHRENS, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 1$, 2009 6. Groundwater Clean-up and Protection ($1 billion). This money will be provided to the California Department of Public Health to fund projects to prevent or reduce contamination of groundwater that serves as a source of drinking water. When prioritizing projects, DPH will consider, among other factors, the gravity of the threat to public health, the project's potential to improve groundwater supplies and local water supply reliability, and whether any responsible parties are willing and able to pay for cleanup. Portions of the funds are earmarked for Superfund site cleanup and for use in economically disadvantaged areas. 7. Drought Relief ($455 million). These funds will be available for local and regional drought relief projects, defined to include projects to mitigate impacts from reductions to Delta diversions. These projects may promote conservation, recycllnsy and efficiency. The, fia?!ds also could also beused 4Vvn build lvvui v 1.., kc vM storage intended for use during droughts and other emergencies. Funds will be available to improve wastewater treatment to prevent surface or groundwater contamination. ACWA Position: Support Status: Chaptered (Slats. 2009 ch. 3 (7th Extra. Sess.)) A.3 SB X7 6 (Steinberg/Pavley) Groundwater monitoring and reporting This bill establishes a monitoring and reporting system only and does not impose new penalties on groundwater pumpers. The bill requires DWR to designate a "monitoring entity" for every California groundwater basin and subbasin. Each locality may choose its own monitoring entity, subject to DWR's qualifications review. Local agencies, counties, or private voluntary monitoring associations may serve as monitoring entities. Starting in 2012, monitoring entities must regularly and systematically monitor groundwater elevations in their jurisdiction and report that information to DWR and to the public. If no local entity agrees to monitor a particular basin, then in certain limited circumstances DWR would assume such duties, and the county in which the basin lies would become ineligible for state water grants or loans. ACWA Position: Support Status: Chaptered (Slats. 2009 ch. 1 (7th Extra. Sess.)) AA SB X7 7 (Steinberg/Feuer/Huffman) Water conservation Urban conservation ("20% by 2020"). This bill requires a statewide reduction in urban per capita water use of 10% by December 31, 2015 and 20% by December 31, 2020. Each urban retail water supplier must develop interim and long-term "urban water use targets" by July 2011, and must meet that long-term target by 2020. Non-compliant urban retail water suppliers will become ineligible in 2016 for state water grants or loans (with certain exceptions). 3 MCCORMICK, IQDALAN & BEHRENS, LLP • 2009 FINAL LEGISLATIVE REPORT NOVEMBER 18, 2009 In some circumstances, an agency might not need to reduce current use by 20%, since each supplier may use one of several methods to calculate its target. First, it may reduce water use to 80% of the current level. Second, it may reduce use to 95% of the "hydrologic region target" contained in the April 30, 2009 draft "20 x 2020 Water Conservation Plan." Third, the agency may adopt a per capita water use target based on defined "performance standards." Fourth, the agency may account for conservation using an alternate method to be developed by DWR before December 31, 2010. This alternate method must avoid "undue hardship" to agencies that have already achieved reductions from existing conservation programs. The bill is short on details, but DWR's method will presumably credit agencies for existing conservation, resulting in such agencies bearing less additional burden to achieve the statewide 20% reduction. A ncultural conservation. Agricultural water suppliers base water rates at least in part on the quantity of water delivered. They miner i,ndertike ether consen~ation m.-as-m-es. for, corwri < purposes where technically and economically feasible. Beginning in 2013, agricultural suppliers must submit Agricultural Water Management Plans to DWR which contain information about the supplier's existing and planned water efficiency measures. ACWA Position: Support Status: Chaptered (Slats. 2009 ch. 4 (7th Extra. Sess.)) A.5 SB X7 8 (Steinberg) Water diversion and use: reporting: resources Existing law requires diverters of water to file annual statements of diversions and use with the SWRCB, but only for certain appropriations. It provides a $500 penalty per violation for any material misstatement in connection with the filing such statements. This bill increases the burden on diverters to file reports with the SWRCB. First, it increases the frequency of required filings, mandating the filing of monthly records of use starting in 2012. Second, it enlarges the filing requirement's scope by extending it to diversions made under riparian and pre-1914 rights (which were previously unenforced). Third, it increases enforcement of reporting violations by (a) increasing civil penalties for failure to file to $1,000 per day, (b) extending those penalties to failure to report riparian and pre-1914 diversions, (c) imposing a criminal penalty for willful misstatements, and (d) creating 25 new permanent water rights enforcement positions at SWRCB to be funded by fee revenues. Finally, this bill appropriates $546 million to SWRCB and DWR from previous bond acts for integrated regional water management, flood control and management, and natural community conservation planning. ACWA Position: Support Status: Chaptered (Slats. 2009 ch. 2 (7th Extra. Sess))) 4 i McCORDIIC , KIDNUN & BEHRENS, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 18, 2009 B. DROUGHT, WATER CONSERVATION & WATER RATIONING B.1 AB 49 (Feuer/Huffman). Water conservation: urban and agricultural water management planning ACWA Position: Oppose Status: Dead B.2 AB 474 (Blumenfield) Contractual Assessments: water efficiency improvements Existing law authorizes cities and counties to enter into contractual assessment agreements with consenting property owners for the purpose of financing certain public works improvements. Under a contractual assessment system, property owners within a designated area choose to assess themselves for the cost of authorized improvements. The local government then provides the up-front funds for the project, and the property owners pay an annual assessment until those funds, plus interest, are repaid. AB 811, enacted in 2008, authorized cities and counties to use voluntary contractual assessments to finance property owners' installation of certain energy efficiency improvements to real property. This bill authorizes water districts, regardless of their form of organization, to establish by resolution a zone within which landowners would assess themselves in return for receiving funding for the installation of water efficiency improvements that are permanently fixed to real property. Such improvements include permeable pavement, recycled water piping, drip irrigation, cisterns, synthetic turf, and other water conservation measures. The agency's legislative body must perform additional recordkeeping and must provide specified notice to any entity providing energy or water within the area where contractual assessments are allowed. This bill also requires additional specified disclosures to a transfer of real property subject to a contractual assessment. ACWA Position: Favor Status: Chaptered (Stats. 2009 Ch. 444) I B.3 AB 1061 (Lieu) Homeowner Associations: water-efficient landscapes This bill provides that a provision of any of the governing documents of a common interest development shall be void and unenforceable if the provision prohibits, or contains conditions with the effect of prohibiting or restricting compliance with (1) any regulation or restriction on the use of water adopted pursuant to Water Code section 353 or 375, or (2) a water efficient landscape ordinance adopted or in effect pursuant to Section 65595(c) of the Government Code. ACWA Position: Favor Status: Chaptered (Stats. 2009 Ch. 503) 5 McCORnIICK, KFDl1LAN' & BEHRENs, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 18,2009 B.4 SB 407 (Padilla) Property transfers: plumbing fixtures retrofit This bill requires the replacement of all plumbing fixtures in any residential or commercial real property that are not "water-conserving plumbing fixtures" before any sale or transfer by the property owner, starting on January 1, 2014. Such fixtures must be replaced with "water- conserving plumbing fixtures." However, certain sales and transfers are excepted from this new requirement, including (1) sales pursuant to non judicial foreclosure, (2) sales where fixture replacement would impose a significant financial hardship on the seller or transferor, and (3) sales where a licensed plumber certifies that installation of water-conserving plumbing fixtures is not technically feasible due to the age or configuration of the property or its plumbing. For any sale or transfer, real estate agents must disclose this fixture replacement requirement. and escrow will be conditioned on the seller's or transferor's compliance. The seller must also certify in writing to the prospective purchaser or transferee that the requirement has been satisfied. ACWA Position: Support/Sponsor Status: Chaptered (Stats. 2009 Ch. 587) C. WATER RESOURCES MANAGEMENT & WATER PROJECTS CA SB 229 (Pavley) Water: diversion and use: groundwater I ACWA Position: Oppose Status: Dead i I C.2 SB 261 (Dutton) Water use: water management plans i ACWA Position: Support Status: Dead C.3 ACA 12 (Logue) Water: area of origin statutes ACWA Position: N/A Status: Dead D. INFRASTRUCTURE FINANCING DA ACA 9 (Huffman) Local government bonds: special taxes: voter approval ACWA Position: Support Status: Dead 5 M CCORMICK, KIDI% AN & BEHRENS, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 18, 2009 D.2 SB 279 (Hancock) Local government: community facilities districts Although enrolled by the Legislature, this bill was vetoed by the Governor. The Mello-Roos Community Facilities Act of 1982 authorizes the establishment of a community facilities district (CFD) to finance the purchase, construction, expansion, improvement; or rehabilitation of facilities for certain authorized purposes, including child care facilities, undergrounding of water transmission and distribution facilities, and the cleanup of hazardous materials. This bill would have expanded the authorized purposes for CFDs to include the financing and refinancing of energy efficiency, water conservation, and renewable energy improvements to or on real property and in buildings. The Governor vetoed this bill because, in his view, Mello-Roos taxes are intended to finance "core infrastructure needs such as roadways, sewers, and street lighting." He believes this bill would represent a "fundamental shift" away from those "core infrastructure" purposes by allowing Mello-Roos takes to finance energy efficiency improvements. ACWA Position: Favor Status: Vetoed I E. EMINENT DOMAIN F. PUBLIC OFFICIALS & ETHICS G BROWN ACT & PUBLIC RECORDS H. LABOR, EMPLOYMENT & BENEFITS H.1 AB 943 (Mendoza) Employment: credit reports Although enrolled by the Legislature, this bill was vetoed by the Governor. This bill would have prohibited an employer, except for 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 is managerial, or is with a city or county, or is a sworn peace officer or other law enforcement position, or is a position for which the j information contained in the report is required to be disclosed by law or to be obtained by the employer. 7 MCConiICIc, KIDAL-,iN & BEHRENS, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 18, 2009 The Governor vetoed this bill because "California's employers and businesses have inherent needs to obtain information about applicants for employment and existing law already provides protections for employees from improper use of credit reports." He believes "this measure would significantly increase the exposure for potential litigation over the use of credit checks." ACWA Position: Not favor unless amended Status: Vetoed 1. PUBLIC WORKS & CONTRACTS 1.1 AB 815 (Ma) Public contracts: plans and specifications "WA Puyiiivn: Oppose Status: Dead J. WATER SUPPLY & LAND DEVELOPMENT J.1 AB 300 (Caballero) Subdivisions: water supply ACWA Position: Support if amended Status: Dead J.2 AB 1408 (Krekorian) Subdivisions: Water Demand Mitigation Fund ACWA Positron: Support if amended Status: Dead J.3 AB 1465 (hill) Urban water management planning Existing law requires every urban water supplier to prepare and adopt an urban water management plan for submission to DWR and other entities. An urban water supplier is required to provide information relating to the supplier's water demand management measures. Existing law also allows urban water suppliers that are members of the California Urban Water Conservation Council (CUWCC) and submit annual reports to that council to satisfy the information requirement by submitting those CUWCC reports to the DWR. This bill deems water suppliers that are members of CUWCC 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 UWMP. ACWA Position: Favor Status: Chaptered (Stats. 2009 Ch. 534) 8 McComicK, KIDIvLAN & BEHRENS, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 1 8., 2009 K. WATER QUALITY & WATER POLLUTION K.1 AB 1366 (Feuer) Residential self-regenerating water softeners 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. However, the existing process is subject to certain limitations and required findings. This bill makes it easier for local agencies to ban or limit new residential water softeners and to require the removal of existing water softeners. It authorizes any local #eency.that owns or operates a community sewer system or water recycling facility within specified areas of the state to take action by ordinance, after a public hearing. The appropriate regional water quality control board must first have made a finding that the control of residential salinity inputs will contribute to the achievement of water quality objectives in that region. ACWA Position: Support Status: Chaptered (Stats. 2009 ch. 527) K.2 SB 565 (Pavley) Water recycling i ACWA Position: Oppose Status: Dead L. ENVIRONMENTAL QUALITY & ENDANGERED SPECIES L.1 AB 39 (Huffman) Sacramento-San Joaquin Delta: Delta Plan ACWA Position: Support Status: Dead L.2 AB 804 (Hall) Invasive aquatic species: mussels Although enrolled by the Legislature, this bill was vetoed by the Governor. This bill would have exempted operators of water delivery and storage facilities from civil or criminal liability for the introduction of dreissenid mussel species as a result of operations of those facilities, where the operator prepares, initiates, and is in compliance with a plan to control and eradicate dreissenid mussels in accordance with the above- existing provisions of law. The Governor stated he vetoed this bill because he had already signed legislation to require water managers to assess the threat of dreissenid mussels in their waters, develop prevention plans, and 9 MCCORMICK, KIDALAIN & BEHRE.NS, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 18, 2009 conduct monitoring activities. The Governor believes this bill would relieve water operators from having to continue to act responsibly once they initially have an approved response plan in place, thereby shifting liability to the state for any ensuing damage resulting from the spread of dreissenid mussels. ACWA Position: Support/Sponsor Status: Vetoed L.3 SB 12 (Simitian) Sacramento-San Joaquin Delta Council ACWA Position: Support Status: Dead LA SB 458 (Steinberg/Simitian) Sacramento-San Joaquin Delta Conservancy: Delta Protection Commission ACWA Position: Support Status: Dead L.5 SB 476 (Correa) CEQA: noncompliance allegations: public comment ACWA Position: Favor Status: Dead A SPECIFIC AGENCIES AND/OR PROJECTS N. LAFCO 0. PROPERTY TAX ALLOCATION; REVENUE AND COLLECTION PROCEDURES . P. BILLING & REVENUE PROCEDURES P.1 AB 282 (Cmte. on Transportation) Transportation: mobile digital terminals in agency vehicles Existing law generally prohibits a person from driving a motor vehicle while a television or video screen or monitor is operating, if the screen is visible to the driver or is located forward of 10 MCCORMICK, KIDN-L4 , & BEHRENS, LLP 2009 FINAL LEGISLATIVE REPORT NOVEMBER 182 2009 the back seat. This bill adds an exception. It allows a "mobile digital terminal" to be installed and operated in vehicles owned or operated by various public entities, including water agencies. Two limitations apply to this authorization. First, the local agency must use the vehicle solely to provide water, wastewater, sewer, or gas service. Second, the terminal must be fitted with an opaque covering that prevents the driver to view the display while driving. Despite these limitations, the vehicle may always be deployed to respond to an interruption or impending interruption of service. ACWA Position: Support Status: Chaptered (Stats. 2009 ch. 229) INiIEN AB 39 (Huffman) 9 AB 49 (Feuer/Huffman) 5 AB 282 (Cmte. on Transportation) 10 AB 300 (Caballero) 8 AB 474 (Blumenfield) 5 AB 804 (Hall) 9 AB 815 (Ma) 8 AB 943 (Mendoza) 7 AB 1061 (Lieu) 5 AB 1366 (Feuer) 9 AB 1408 (Krekorian) 8 AB 1465 (Hill) 8 ACA 12 (Logue) 6 ACA 9 (Huffman) 6 SB 12 (Simitian) 10 SB 229 (Pavley) 6 SB 261 (Dutton) 6 SB 279 (Hancock) SB 407 (Padilla) 6 SB 458 Steinber Simitian SB 476 (Correa) 10 SB 565 (Pavley) SB X7 1 (Simitian/Steinberg) 1 SB X7 2 (Cogdill) 2 SB X7 6 (Steinberg/Pavley) 3 SB X7 7 (Steinberg/Feuer/Huffinan) 3 SB X7 8 (Steinberg) 4 11 i i ITEM NO. 3.10 AGENDA REPORT Meeting Date: December 14, 2009 Subject: General Counsel's Monthly Summary Billing Report ATTACHMENTS: MKB - Billing Summary Nov.pdf `'KB Billing Summary Backup Material YORBA LINDA WATER DISTRICT MONTHLY SUMMARY BILLING CHART BILLING MONTH. November Matter Matter Date Task Order Name Number Opened Amount CURRENT FISCAL YEAR 2009 -2010 Current Billing Total Billed to Date Total Billed 2008 -2009 November 23, 2009 Current Fiscal Year Prior Fiscal Year CONSTRUCTION CONTRACTS 002 7/31/2007 NIA $9,446.50 $15,605.69 $16,113.90 PROPERTY TAX ALLOCATION 030 $0.00 $1,404.54 $2,085.00 OCWD ANNEXATION 040 1/13/1994 NIA $0.00 $687.50 $7,185.00 RICHFIELD SITE IMPROVEMENTS 042 $0.00 $0.00 $545.00 SHELL 051 $0.00 $51.34 $1,304.71 HIDDEN ! -TILLS RESERVOIR 068 8/25/2003 $11,985.68 $50,461.97 $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 $577.50 $1,924.00 NON - CONSTRUCTION AGREEMENTS 084 4/5/2005 $11,000.00 $770.60 $11,919.44 $43,493.12 CELL TOWER 085 7/28/2006 $15,000.00 $0.00 $2,043.80 $1,012.50 WATER RATESIWATER CONSERVATION 087 7/31/2006 $10,000.00 $0.00 $12,154.50 $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 $0.00 $545.501 $1,202.50 TOTAL I 1 1 $22,202.78 $95,451.78 $290,488.09 McCormick, Kidman & Behrens Charges Month of Nov-09 Expensed 14,331.45 Job charges 9,871.33 24,202.78 YTD through Nov-09 Expensed 88,902.02 Job charges 18,039.76 106,941.7F