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HomeMy WebLinkAbout2008-02-20 - Executive-Administrative-Organizational Committee Meeting Agenda PacketML • w YORBA LINDA WATER DISTRICT EXECUTIVE - ADMINISTRATIVE - ORGANIZATIONAL COMMITTEE MEETING Wednesday, February 20, 2008, 4:00 p.m. 4622 Plumosa Drive, Yorba Linda, CA 92886 — Tel: (714) 701 -3020 AGENDA COMMITTEE: STAFF: Director John Summerfield, Chair Michael A. Payne, General Manager Director William R. Mills Ken Vecchiarelli, Asst. General Manager Alternate: Director Ric Collett INTRODUCTION OF VISITORS AND 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. ACTION ITEMS: This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee actions. • 1. Board of Directors Annual Goals Workshop. Recommendation: That the Executive - Administrative - Organizational Committee provide direction to staff. 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. 2. Townsend Public Affairs Report on grants. 3. Sacramento Advocates Legislative Report. 4. General Manager's monthly report. 5. Professional Services Agreement — Sacramento Advocates Contract 6. Professional Services Agreement for Legal Services - Rutan & Tucker. 7. Directors and General Manager's Fees and Expenses Year -to -Date Report •ADJOURNMENT: The next Executive - Administrative - Organizational Committee is scheduled for March 18, 2008, 4:00 p.m. • 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 Michael A. Payne, District 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. • • -2- ITEM NO. 1 AGENDA REPORT Committee Meeting Date: February 19, 2008 To: Executive-Administrative-Organizational Committee From: Michael A. Payne, General Manager Staff Contact: Same Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ Funding Source: Water Operating Fund CEQA Account No: Job No: Compliance: N/A Estimated Costs: N/A Dept: Subject: 2008 Board of Directors Goals Workshop SUMMARY: Each year the Board of Directors discusses the goals of the Board and staff for the upcoming year(s). DISCUSSION: There are many issues to discuss such as water shortages and conservation, the economy, variable operating expenses, the Plumosa property, District policies and organizational issues, plus others. The workshop and the desired results can best be done with a facilitator. The Board has several options to chose from: 1) The Board President can facilitate the workshop. 2) The General Manager and/or Assistant General Manager can facilitate the workshop. 3) The Board can bring in an outside consultant as in 2004 when the District hired Charles Beasley. 4) Other A copy of the minutes of the March 15, 2007 Board Goals Workshop are attached. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors conducted the last Goals workshop on March 15, 2007 with the General Manager as the facilitator. STAFF RECOMMENDATION: That the Executive-Administrative-Organizational Committee provide direction to staff on the facilitator and a proposed agenda.. MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING March 15, 2007 The March 15, 2007 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Ric Collett at 8:37 a.m. The meeting was held at Richfield Plant Emergency Operation Center, 913 Richfield Road, Placentia. DIRECTORS PRESENT AT ROLL CALL Ric Collett, President John W. Summerfield, Vice President Paul R. Armstrong Michael J. Beverage William R. Mills STAFF PRESENT Michael A. Payne, General Manager Kenneth R. Vecchiarelli, Asst. G.M. Diane Cyganik, Finance Director John DeCriscio, Chief Plant Operator Amelia Cloonan, Exec Secretary INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Paul Kaymark, Charles Z. Fedak & Company, Certified Public Accountants DISCUSSION ITEMS 1. Annual Board of Directors Workshop - 2007 General Manager Payne introduced Paul Kaymark of Charles Z. Fedak & Company, the District's auditors. Mr. Kaymark said he would speak about the District, historical values and the future. Mr. Kaymark noted a lot of construction is coming up, and the District's reserves will be going towards meeting costs of the projects. A trend chart was included in the agenda packet. Mr. Kaymark explained the information contained in the charts, which presented operating reserve ratios for other districts and for the Yorba Linda Water District. The District's numbers indicate it has the lowest reserves per customer in comparison to other agencies listed. Information about policies of other agencies was also included in the agenda, and Mr. Kaymark spoke about these policies. Mr. Kaymark suggested the District work with a bank for a $5 million line of credit so funds will be available in case of emergency. There was discussion about FEMA funds for districts and the timing of approval and availability of funds. Mr. Kaymark recommends a goal of 1:5 ratio and two years of operating reserves for sewers. Director Armstrong asked about commitments on current funds. General Manager Payne said the District has commitments for ID #1 and ID #2 projects for storage, pumping and transmission. The District issued Certificates of Participation (COPs) in 2003 for the administration building and Highland Reservoir replacement project. -1- General Manager Payne mentioned one of the recommendations today will be to develop a reserve policy. Is there a consensus that the District should have a written reserve policy? The Directors responded affirmatively. With respect to a rate stabilization policy: Director Armstrong stated it is a very good to have a policy in place, especially if you think there are going to be more regional problems, ex. drought. President Collett believes you are fooling the people if they are paying a rate that is not true. Director Beverage stated if you have your policy and set a reserve policy of $5 million, everything is laid out. Vice President Summerfield asked about a good number. Mr. Kaymark answered it is wherever you are able to get the best rate. Director Mills asked about reserves and a definition of what is actually a reserve. Vice President Summerfield stated you first need to determine why you are setting up reserves. Assistant General Manager Vecchiarelli stated catastrophic failure is a reason to use reserves. Director Beverage suggested a line of credit. President Collett added it should be combined with a reserve policy. Raising rates is no longer as simple as in the past. Rates for debt service on projects were discussed. Director Mills commented the District has no funds set aside for replacing facilities. Assistant General Manager Vecchiarelli replied that is a component of the District's water rate. Director Armstrong asked what the District does with the depreciated value. Assistant General Manager Vecchiarelli said a public agency depreciation it is a zero value. General Manager Payne summarized the discussions and confirmed there was a consensus to develop a written Reserve Policy and send it to the Finance- Accounting Committee for discussion. Additionally, staff will check with financial institutions for establishing lines of credit. The results and recommendations will be submitted to the Finance-Accounting Committee. A recess was declared at 10:05 a.m. Paul Kaymark left the meeting. The Board of Directors reconvened at 10:12 a.m. All Directors were present. 2. General Manager Payne presented the working agenda for the 2007 Board Goals Workshop. • Construction Projects - Status Report Staff distributed a list of the Capital Projects for the Fiscal Budget 2005/06 and 2006/07. The Board reviewed the list. There were no changes. • Funding for Projects The Board reviewed developer funds, annexation fees, Improvement District funds (if appropriate), Certificates of Participation and Water rates. The board concurred to consider issuing more COP's for Lakeview Reservoir & Booster Project - 12 mg, balance of Highland Reservoir -2- Replacement project, Transmission pipelines, etc. and to Review Water, Sewer & Customer/Dev Fees Annually. • Upcoming 2007/08 Budget Staff is proposing to use the same format as 2005/07 budget. Continue with fast track project plan. Staff is proposing the following changes: 1) Strive for Balanced Budget within two years; 2) Do away with negative numbers; and 3) Establish 24 month cash flow to coincide with budget immediately following adoption of Budget. • Cash Flows Staff has developed a 6 month cash flow program and is continuing to work towards a 24 month cash flow to coincide with the budget. • Revenues - other agencies - State, MWDOC Revenues from others, i.e. State, MWDOC, OCWD Weaning State funds from operating - put to reserves. This will be discussed further in the Finance-Accounting Committee. • Standing Committee Structure There are five standing committees. The Support Services Department was eliminated two years ago and replace with an Information Technology Department. Items pertaining to Information Technology items are not presented to a specific committee. General Manager Payne suggested IT be added to the Public Information Committee. Vice President Summerfield stated GIS interacts with the entire District. A consensus was reached by the Board of Directors. It was decided to rename the Public Information Committee to the Information Systems Committee. • Board of Directors issues Director Armstrong wants to be sure all items appearing in the Agenda have gone before a committee. Assistant General Manager Vecchiarelli asked for clarification. Did Director Armstrong want Consent Calendar Items to be presented to a committee before going to the Board? Director Armstrong wanted Discussion and Action Items to go to a committee and wanted a committee member to make the motion to approve the item. Director Mills commented it a matter for the General Manager to decide, and it is a matter of timing. President Collett asked about emailing agendas to the Board members. General Manager Payne said staff will develop a method to have the entire agenda made available to the general public and a complete agenda with reports will be sent electronically. If Agenda packets are delivered by hand, a phone call will be made to the Director before delivery. -3- Director Armstrong asked about the procedure for visitors to speak during a board meeting and about the procedure for Directors to recuse themselves from discussion and voting on an item. General Manager Payne stated the rules will be reviewed and brought back to the Executive Committee. Director Mills questioned staff about the District investigation of drilling a well near the Santa Ana River? Assistant General Manager Vecchiarelli stated this will come back to the Board in April. 3. Other Issues • Appraisal of Plumosa Office. Since the contract had been let on the new Administration, staff will begin the appraisal process for the Plumosa Office in July. • Water Conservation Rebates General Manager Payne asked if this Board wants to look into rebates for those who put in water conserving projects in their home, e.g. artificial turf. Director Armstrong said to leave it to regional capabilities. Director Mills felt MWDOC should do it. President Collett said the District should tag on to someone else's project. Vice President Summerfield said this would be too much for the District right now. Director Beverage wants to offer rebates for artificial turf. • Grant programs General Manager Payne asked if the Board was happy with the progress of the grant program and whether it should changed. Vice President Summerfield asked that it be considered whether the District was wasting time and money, because there are so many projects and only so much funding. Director Armstrong said it should be made into a 3-4 year plan. President Collett said to give it another budget cycle. Director Mills said it is too early to cut it off, but the District needs to set a limit. Director Beverage said the process takes time. • Other Issues There were no additional issues the Board members wanted to consider. ADJOURNMENT On a motion by Director Beverage, seconded by Vice President Summerfield, the Board of Directors voted to adjourn at 11:00 a.m. to a regular meeting of the Board of Directors scheduled for Thursday, March 22, 2007, at 8:30 a.m., at 4622 Plumosa Drive, Yorba Linda 92886. Kenneth R. Vecchiarelli Assistant Secretary -4- To: Board of Directors Mike Payne, General Manager Yorba Linda Water District From: Christopher Townsend, President Sean Fitzgerald, Southern California Director Heather Dion, Senior Associate Date: February 14, 2008 Subject: 2008 Action Plan FY 09 Federal Appropriations Summary: The FY 09 federal budget cycle kicks off this month with appropriations deadlines approaching for both House and Senate members. YLWD has requested federal funding in each of the past two years to help complete the Highland Reservoir expansion, but has thus far not been successful. In advance of this year's deadline, TPA engaged actively with Congressman Miller and his staff to determine the potential success and political backing of the request in the coming year. We are pleased to report that this outreach, which included the able assistance of MWDOC Director Brett Barbre, has been successful in securing the Congressman's pledge to ensure that the request is funded in the coming budget year. Mr. Miller understands the need for this project and is cognizant of our two years worth of work to seek federal assistance. TPA is recommending one important change to this year's request, which is that the request will be made through a new funding source that was recently created through the re-authorization of the Water Resources Development Act (WRDA). Within the authorized legislation, Senator Boxer was successful in advocating for $40 million solely for the State of California for projects in the form of design and construction for projects related to wastewater treatment, water supply, environmental restoration, and surface water resource protection and development (H.R. 1495, Sect. 5039). The guidelines for these funds have not been established by the Corps of Engineers (COE), which is the administering agency, and will be appropriated through the normal federal appropriations request cycle with the COE acting as pass through agency. This type of discretionary COE funding system has been established in Nevada and the L.A. office of the COE believes California will utilize a similar model. The funding can be distributed either through grants or reimbursement of funding expended. Action Items (Timeline/Status): • Submit appropriations request forms to Congressman Gary Miller's office in advance of February 15th deadline (Complete) • Submit appropriations request forms to Senators Boxer and Feinstein in advance of their February 29th deadline (Prior to Feb. 29) • Conduct meetings with the offices of Congressman Miller and Senators Boxer and Feinstein in coordination with ACWA DC Conference (late February) • Gather renewed support letters from agencies and organizations that support the project (March/April) Proposition 50 CDPH Grants Summary: YLWD submitted two pre-applications for the Prop. 50 Drinking Water Program, and both are under review by the Department of Public Health (formerly DHS). CDPH expects to publish its results for this initial review, known as the Project Priority List, in early 2008. This announcement will trim the field of potential applicants and invite only a certain segment to submit a full proposal. Should YLWD make this list, it will stand a very good chance of funding through this program. Action Items (Timeline/Status): • Monitor CDPH release of Project Priority List (PPL). (Ongoing) • Assess feedback from CDPH staff, either in preparation for submission of full application or for re-submission as a pre-application in mid-2008. (Likely March) • Provided YLWD makes the PPL, work directly with staff in preparation of full application. (Summer 2008) Synthetic Turf Replacement/Water Use Efficiency Funding Summary: YLWD seeks to create recreation/open space opportunities from the covering of its active reservoirs and, in particular, is interested in synthetic turf installations that provide greater water efficiency, as well as greater capacity for active recreational uses. TPA secured the state's first ever parks and recreation grant for synthetic turf and remains engaged in the process to appropriate funds from Proposition 84 for such purposes. It is likely that park funding from Prop. 84 will finally be available in 2008 and it would provide an excellent opportunity to secure funding for such projects. Action Items (Timeline/Status): • Work with Asm. Mike Duvall to facilitate a visit to YLWD by Sedrick Mitchell, Deputy Director of the state's Department of Parks & Recreation, who oversees all funding programs for the department. (Ongoing) • Monitor status of state budget relating to appropriation of Proposition 84 funds. (Ongoing) Please note: Our January update included a review of the budget as relates to Prop. 84. • Monitor development of grant funding criteria and processes by CA Dept. of Parks & Recreation (DPR). (Spring 2008) • Actively assist YLWD staff in project definition and preparation of grant funding application. (Summer 2008) Recreational Trails Program (RTP) Summary: In coordination with the effort to maximize its reservoir infrastructure for community benefit, YLWD could seek funding through this program for the construction of trails around the Highland Reservoir, or other suitable projects. RTP is funded by federal transportation monies administered by the Dept. of Parks & Recreation. Grant cycles begin every October, with announcements made about 90 days thereafter. This program would provide an excellent partnership opportunity with the City of Yorba Linda (and potentially other municipalities) particularly in connecting with other existing trail systems. Action Items: • TPA to work with YLWD staff to determine best possible projects in relation to the RTP guidelines (February-March) • If applicable, TPA to work with YLWD to establish partnership with City of Yorba Linda (March) • TPA to assist with grant preparation and submission (Fall 2008) Upcoming Potential Funding Programs: The following programs have not yet been released, nor has an appropriate YLWD project yet been identified. When the criteria for these programs are released, however, they may provide additional opportunities for project funding in 2008. In particular, these opportunities could relate to the Elk Mountain project, other YLWD reservoirs, and the groundwater basin. The State Revolving Loan Fund can be used for nearly any of the District's projects and represents an excellent source of low-interest financing. Urban Streams Restoration Grants Summary: This program is intended to reduce urban flooding/erosion, restore environmental value, and promote community stewardship of urban streams. Funds Available (Max/Min): $18 million (Max = $1 million per project) Eligible applicants: Current criteria not yet available, past recipients include public agencies and non-profits. Timeline: DWR expects to release a proposal solicitation notice for the program in early 2008. Prevention or Reduction of Contamination of Groundwater that Serves as a Source of Drinkinci Water (CDPH) Summary: This funding is available for both loans and grants to reduce or prevent contamination of groundwater that serves as a drinking water source. CDPH will require repayment for costs that are recovered from parties responsible for the contamination. Funds Available (Max/Min): $60 million (Max = $5 million per project) Eligible applicants: Community water systems that hold or have applied for a domestic water permit pursuant to Health and Safety Code section 116525, public agencies and non-profit organizations. Timeline: The upcoming pre-application period (pre-applications are required in order to be invited back to submit a full application) is yet to be announced, but is expected to occur in July 2008. Emergency Clean Water Grant Program (CDPH) Summary: This funding is available for grants and direct expenditures to fund emergency and urgent actions to ensure safe drinking water. Projects can include, but are not limited to: • Alternative water supplies including bottled water; • Improvements in existing water systems necessary to prevent contamination; • Establishing connections to adjacent water systems • Design, purchase, installation and initial operation for water treatment equipment and systems. Funds Available (Max/Min): $10 million (Max = $250,000 per project) Eligible applicants: Requests for funds must come from a public water system, the local Health Officer, or the local Director of Environmental Health. Timeline: This program falls under CDPH's pre-application guideline process. The next pre-application period is anticipated in July 2008. State Revolving Fund Loan Program (SWRCB) Summary: The program provides low-interest funding for construction of publicly owned wastewater treatment facilities, local sewers, sewer interceptors, water reclamation facilities, as well as expanded use projects such as implementation of non-point source projects or programs, development and implementation of estuary conservation and management plans, and storm water treatment. Funds Available (Max/Min): Approximately $200-$300 million available annually Eligible applicants: Public water systems. Timeline: Applications are accepted on a continuous basis Barry S. Brokaw Sacramento Advocates, Inc. Donne Brownsey A California based Public Affairs and Governmental Relations Firm James D. Stassi 1215 K Street, Suite 2030 - Sacramento, CA 95814 Daniel E. Boatwright Phone (916) 448-1222 ■ Fax (916) 448-1121 General Counsel MEMORANDUM To: Board of Directors, YLWD From: Barry Brokaw Re: State Capitol Update Date: February 7, 2008 Overview Life at the State Capitol took on a "Mr. Toad's Wild Ride" aspect with the rejection of Proposition 93 by the voters. Already swirling in a $14.5 billion budget deficit mess, and facing the options of major cutbacks in state programs and services, and/or tax and fee increases, we now heap on major intra-party fights for leadership positions in the Assembly and Senate. And of course, we have an election year, with 34 termed out legislators searching for other offices to run for. This year looks to be a wild ride to nowhere. Bill Introduction Season Even though legislators have been urged to rein in their legislative proposals in 2008, especially those that would require new state funding (either directly or through state mandated local programs), the lawmakers have through February 22, 2008 to introduce general legislation (non- urgency items). Bills are starting to trickle out of the Legislative Counsel's Office. Sacramento Advocates, Inc. will keep the board apprised of any legislation that may have an impact on the district. Left over measures from 2007 are still working their way through the two-year session, and many of those bear little resemblance to their original subject matter. We are watching those bills as well. One such measure is AB 642-A design-build, public/private partnership bill that could impact water districts (copy attached). AB 642 (Wolk) Design-build: counties, cities, and special districts. (A-01/24/2008) Summary: Existing law, until January 1, 2011, authorizes certain cities, with the approval of the appropriate city council, to enter into design-build contracts, as defined, in accordance with specified provisions. This bill would authorize any city, with the approval of the appropriate city council, to enter into design-build contracts, as defined, in accordance with specified provisions. The bill also would extend these provisions until January 1, 2019. This bill contains other related provisions and other existing laws. Note: This bill would authorize a qualified entity that operates a wastewater facility, solid waste management facility, or water recycling facility, with the approval of the appropriate governing body, to enter into design-build contracts. Status: 01/29/2008-Read third time, passed, and to Senate. Water Bond Discussions Pick Up A coalition of business and development interests is working with the Governor and U.S. Senator Diane Feinstein on draft bond language in hopes the Senator will join the Governor as a Co- Chairman of an initiative to place what would now be a $10.885 billion water bond on the November 2008 ballot. A copy of latest draft proposal in attached, along with a comparison with the plan by state Senate President Pro Tempore Don Perata, which has support from many in the environmental community. Also included was the previously offered Chamber of Commerce- backed proposal. My latest information is that Senator Feinstein is reluctant to jump on board at this time, with environmentalists still strongly opposed to above-ground storage. 2 AMENDED IN ASSEMBLY JANUARY 24, 2008 AMENDED IN ASSEMBLY JANUARY 10, 2008 AMENDED IN ASSEMBLY SEPTEMBER 5, 2007 CALIFORNIA LEGISLATURE-2007-08 REGULAR SESSION ASSEMBLY BILL No. 642 Introduced by Assembly Member Wolk (Coauthor: Assembly Member Soto) February 21, 2007 An act to amend Section 20175.2 of, and to add and repeal Article 5.5 (commencing with Section 20193) of Chapter 1 of Part 3 of Division 2 of, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST AB 642, as amended, Wolk. Design-build: counties, cities, and special districts. (1) Existing law, until January 1, 2011, authorizes certain cities, with the approval of the appropriate city council, to enter into design-build contracts, as defined, in accordance with specified provisions. This bill would authorize any city, with the approval of the appropriate city council, to enter into design-build contracts, as defined, in accordance with specified provisions. The bill also would extend these provisions until January 1, 2019. (2) Existing law requires public entities to comply with certain procedures in soliciting and evaluating bids and awarding contracts for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement. This bill would authorize a qualified entity, as defined, that operates a wastewater facility, solid waste management facility, or water 96 AB 642 - 2 - recycling facility, with the approval of the appropriate governing body, to enter into design-build contracts, as defined, in accordance with specified provisions. The bill also would repeal these provisions on January 1, 2020. (3) This bill would require specified information to be verified under oath, thus imposing a state-mandated local program by expanding the scope of an existing crime. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 20175.2 of the Public Contract Code is 2 amended to read: 3 20175.2. (a) (1) A city, with approval of the appropriate city 4 council, may utilize an alternative procedure for bidding on 5 building construction projects. 6 (2) Cities may award the project using either the lowest 7 responsible bidder or by best value. 8 (b) (1) It is the intent of the Legislature to enable cities to utilize 9 cost-effective options for building and modernizing public 10 facilities. The Legislature also recognizes the national trend, 11 including authorization in California, to allow public entities to 12 utilize design-build contracts as a project delivery method. It is 13 not the intent of the Legislature to authorize this procedure for 14 transportation facilities, including, but not limited to, roads and 15 bridges. 16 (2) The Legislature also finds and declares that utilizing a 17 design-build contract requires a clear understanding of the roles 18 and responsibilities of each participant in the design-build process. 19 The Legislature also finds that the cost-effective benefits to cities 20 are achieved by shifting the liability and risk for cost containment 21 and project completion to the design-build entity. 96 AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (3) It is the intent of the Legislature to provide an alternative and optional procedure for bidding and building construction projects for cities. (4) The design-build approach may be used, but is not limited to use, when it is anticipated that it will: reduce project cost, expedite project completion, or provide design features not achievable through the design-bid-build method. (5) If a city council elects to proceed under this section, the city council shall establish and enforce, for design-build projects, a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor Code, or it shall contract with a third party to operate a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor Code. This requirement shall not apply to any project where the city or the design-build entity has entered into any collective bargaining agreement or agreements that bind all of the contractors performing work on the projects. (c) As used in this section: (1) "Best value" means a value determined by objectives relative to price, features, functions, and life-cycle costs. (2) "Design-build" means a procurement process in which both the design and construction of a project are procured from a single entity. (3) "Design-build entity" means a partnership, corporation, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services, as needed, pursuant to a design-build contract. (4) "Project" means the construction of a building and improvements directly related to the construction of a building, but does not include streets and highways, public rail transit, or water resource facilities and infrastructure. (d) Design-build projects shall progress in a four-step process, as follows: (1) (A) The city shall prepare a set of documents setting forth the scope of the project. The documents may include, but are not limited to, the size, type, and desired design character of the buildings and site, perfonnance specifications covering the quality of materials, equipment, and workmanship, preliminary plans or building layouts, or any other infonnation deemed necessary to describe adequately the city's needs. The performance 96 AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 -4- specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California. (B) Any architect or engineer retained by the city to assist in the development of the project-specific documents shall not be eligible to participate in the preparation of a bid with any design-build entity for that project. (2) (A) Based on the documents prepared in paragraph (1), the city shall prepare a request for proposals that invites interested parties to submit competitive sealed proposals in the manner prescribed by the city. The request for proposals shall include, but is not limited to, the following elements: (i) Identification of the basic scope and needs of the project or contract, the expected cost range, and other information deemed necessary by the city to inform interested parties of the contracting opportunity, to include the methodology that will be used by the city to evaluate proposals, and specifically if the contract will be awarded to the lowest responsible bidder. (ii) Significant factors which the city reasonably expects to consider in evaluating proposals, including cost or price and all nonprice related factors. (iii) The relative importance of weight assigned to each of the factors identified in the request for proposals. (B) With respect to clause (iii) of subparagraph (A), if a nonweighted system is used, the agency shall specifically disclose whether all evaluation factors, other than cost or price, when combined are: (i) Significantly more important than cost or price. (ii) Approximately equal in importance to cost or price. (iii) Significantly less important than cost or price. (C) If the city chooses to reserve the right to hold discussions or negotiations with responsive bidders, it shall so specify in the request for proposal and shall publish separately, or incorporate into the request for proposal, applicable rules and procedures to be observed by the city to ensure that any discussions or negotiations are conducted in good faith. (3) (A) The city shall establish a procedure to prequalify design-build entities using a standard questionnaire developed by the city. In preparing the questionnaire, the city shall consult with the construction industry, including representatives of the building 96 -5- AB 642 1 trades and surety industry. This questionnaire shall require 2 information including, but not limited to, all of the following: 3 (i) if the design-build entity is a partnership, limited partnership, 4 or other association, a listing of all of the partners, general partners, 5 or association members known at the time of bid submission who 6 will participate in the design-build contract, including, but not 7 limited to, mechanical subcontractors. 8 (ii) Evidence that the members of the design-build entity have 9 completed, or demonstrated the experience, competency, capability, 10 and capacity to complete projects of similar size, scope, or I1 complexity, and that proposed key personnel have sufficient 12 experience and training to competently manage and complete the 13 design and construction of the project, as well as a financial 14 statement that assures the city that the design-build entity has the 15 capacity to complete the project. 16 (iii) The licenses, registration, and credentials required to design 17 and construct the project, including information on the revocation 18 or suspension of any license, credential, or registration. 19 (iv) Evidence that establishes that the design-build entity has 20 the capacity to obtain all required payment and performance 21 bonding, liability insurance, and errors and omissions insurance. 22 (v) Any prior serious or willful violation of the California 23 Occupational Safety and Health Act of 1973, contained in Part 1 24 (commencing with Section 6300) of Division 5 of the Labor Code 25 or the federal Occupational Safety and Health Act of 1970 (Public 26 Law 91-596) settled against any member of the design-build entity, 27 and information concerning workers' compensation experience 28 history and worker safety program. 29 (vi) Information concerning any debarment, disqualification, 30 or removal from a federal, state, or local government public works 31 project. Any instance where an entity, its owners, officers, or 32 managing employees submitted a bid on a public works project 33 and were found to be nonresponsive, or were found by an awarding 34 body not to be a responsible bidder. 35 (vii) Any instance where the entity, its owners, officers, or 36 managing employees defaulted on a construction contract. 37 (viii) Any violations of the Contractors' State License Law 38 (Chapter 9 (commencing with Section 7000) of Division 3 of the 39 Business and Professions Code), excluding alleged violations of 40 federal or state law including the payment of wages, benefits, 96 AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -6- apprenticeship requirements, or personal income tax withholding, or of Federal Insurance Contribution Act (FICA) withholding requirements settled against any member of the design-build entity. (ix) Information concerning the bankruptcy or receivership of any member of the design-build entity, including information concerning any work completed by a surety. (x) Information concerning all settled adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build entity during the five years preceding submission of a bid pursuant to this section, in which the claim, settlement, or judgment exceeds fifty thousand dollars ($50,000). Information shall also be provided concerning any work completed by a surety during this period. (xi) In the case of a partnership or other association that is not a legal entity, a copy of the agreement creating the partnership or association and specifying that all partners or association members agree to be fully liable for the performance under the design-build contract. (B) The information required pursuant to this subdivision shall be verified under oath by the entity and its members in the manner in which civil pleadings in civil actions are verified. Information that is not a public record pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) shall not be open to public inspection. (4) The city shall establish a procedure for final selection of the design-build entity. Selection shall be based on either of the following criteria: (A) A competitive bidding process resulting in lump-sum bids by the prequalified design-build entities. Awards shall be made to the lowest responsible bidder. (B) The city may use a design-build competition based upon best value and other criteria set forth in paragraph (2) of subdivision (d). The design-build competition shall include the following elements: (i) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposal. However, the following minimum factors shall each represent at least 10 percent of the total weight of consideration given to all criteria factors: price, technical design 96 7 - AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 and construction expertise, life-cycle costs over 15 years or more, skilled labor force availability, and acceptable safety record. Each of these factors shall be weighted equally. (ii) Once the evaluation is complete, the top three responsive bidders shall be ranked sequentially from the most advantageous to the least. (iii) The award of the contract shall be made to the responsible bidder whose proposal is determined, in writing, to be the most advantageous. (iv) Notwithstanding any provision of this code, upon issuance of a contract award, the city shall publicly announce its award, identifying the contractor to whom the award is made, along with a written decision supporting its contract award and stating the basis of the award. The notice of award shall also include the city's second and third ranked design-build entities. (v) For the purposes of this paragraph, "skilled labor force availability" shall be determined by the existence of an agreement with a registered apprenticeship program, approved by the California Apprenticeship Council, which has graduated apprentices in each of the preceding five years. This graduation requirement shall not apply to programs providing apprenticeship training for any craft that has been deemed by the Department of Labor and the Department of Industrial Relations to be an apprenticeable craft in the five years prior to enactment of this act. (vi) For the purposes of this paragraph, a bidder's "safety record" shall be deemed "acceptable" if their experience modification rate for the most recent three-year period is an average of 1.00 or less, and their average total recordable injury/illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category, or if the bidder is a party to an alternative dispute resolution system, as provided for in Section 3201.5 of the Labor Code. (e) (1) Any design-build entity that is selected to design and build a project pursuant to this section shall possess or obtain sufficient bonding to cover the contract amount for nondesign services and errors and omissions insurance coverage sufficient to cover all design and architectural services provided in the contract. This section does not prohibit a general or engineering contractor from being designated the lead entity on a design-build 96 AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -8- entity for the purposes of purchasing necessary bonding to cover the activities of the design-build entity. (2) Any payment or performance bond written for the purposes of this section shall be written using a bond form developed by the city. (f) All subcontractors that were not listed by the design-build entity in accordance with clause (i) of subparagraph (A) of paragraph (3) of subdivision (d) shall be awarded by the design-build entity in accordance with the design-build process set forth by the city in the design-build package. All subcontractors bidding on contracts pursuant to this section shall be afforded the protections contained in Chapter 4 (commencing with Section 4100) of Part 1. The design-build entity shall do both of the following: (1) Provide public notice of the availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the city. (2) Provide a fixed date and time on which the subcontracted work will be awarded in accordance with the procedure established pursuant to this section. (g) The minimum performance criteria and design standards established pursuant to paragraph (1) of subdivision (d) shall be adhered to by the design-build entity. Any deviations from those standards may only be allowed by written consent of the city. (h) The city may retain the services of a design professional or construction project manager, or both, throughout the course of the project in order to ensure compliance with this section. (i) Contracts awarded pursuant to this section shall be valid until the project is completed. 0) Nothing in this section is intended to affect, expand, alter, or limit any rights or remedies otherwise available at law. (k) (1) If the city elects to award a project pursuant to this section, retention proceeds withheld by the city from the design-build entity shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids. (2) In a contract between the design-build entity and the subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract 96 - 9 - AB 642 1 between the city and the design-build entity. If the design-build 2 entity provides written notice to any subcontractor who is not a 3 member of the design-build entity, prior to or at the time the bid 4 is requested, that a bond may be required and the subcontractor 5 subsequently is unable or refuses to furnish a bond to the 6 design-build entity, then the design-build entity may withhold 7 retention proceeds in excess of the percentage specified in the 8 contract between the city and the design-build entity from any 9 payment made by the design-build entity to the subcontractor. 10 (0 Each city that elects to proceed under this section and uses 1 I the design-build method on a public works project shall submit to 12 the Legislative Analyst's Office before December 1, 2014, a report 13 containing a description of each public works project procured 14 through the design-build process that is completed after January 15 1, 2011, and before November 1, 2014. The report shall include, 16 but shall not be limited to, all of the following information: 17 (1) The type of project. 18 (2) The gross square footage of the project. 19 (3) The design-build entity that was awarded the project. 20 (4) The estimated and actual project costs. 21 (5) A description of any written protests concerning any aspect 22 of the solicitation, bid, proposal, or award of the design-build 23 project, including the resolution of the protests. 24 (6) An assessment of the prequalifi cation process and criteria. 25 (7) An assessment of the effect of retaining 5 percent retention 26 on the project. 27 (8) A description of the Labor Force Compliance Program and 28 an assessment of the project impact, where required. 29 (9) A description of the method used to award the contract. If 30 the best value method was used, the report shall describe the factors 31 used to evaluate the bid, including the weighting of each factor 32 and an assessment of the effectiveness of the methodology. 33 (10) An assessment of the project impact of "skilled labor force 34 availability." 35 (11) An assessment of the most appropriate uses for the 36 design-build approach. 37 (m) Any city that elects not to use the authority granted by this 38 section may submit a report to the Legislative Analyst's Office 39 explaining why the city elected not to use the design-build method. 96 AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -10- (n) On or before January 1, 2014 2015, the Legislative Analyst's Office shall report to the Legislature on the use of the design-build method by cities pursuant to this section, including the information listed in subdivision (n. The report may include recommendations for modifying or extending this section. (o) Except as provided in this section, nothing in this act shall be construed to affect the application of any other law. (p) This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date. SEC. 2. Article 5.5 (commencing with Section 20193) is added to Chapter 1 of Part 3 of Division 2 of the Public Contract Code, to read: Article 5.5. Waste and Recycling Facilities 20193. (a) (1) Notwithstanding any other provision of law and subject to the limitations of this article, a qualified entity, with approval of its governing body, may utilize an alternative procedure on bidding on projects in excess of two million five hundred thousand dollars ($2,500,000). (2) Only 20 design-build projects shall be authorized under this article. (3) A qualified entity may award a project using either the lowest responsible bidder or by best value. (4) For purposes of this article, "qualified entity" means an entity that meets both of the following: (A) The entity is any of the following: (i) A city. (ii) A county. (iii) A special district as defined in subdivision (d) of Section 16271 of the Government Code. (B) The entity operates wastewater facilities, solid waste management facilities, or water recycling facilities. (b) If a qualified entity elects to proceed under this section, the qualified entity shall establish and enforce for design-build projects a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor Code, or it shall contract with a third party to operate a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor Code. This 96 _11- AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 requirement shall not apply to any project where the qualified entity or the design-build entity has entered into any collective bargaining agreement or agreements that bind all of the contractors performing work on the projects. (c) As used in this section: (1) "Best value" means a value determined by objective criteria related to price, features, functions, small business contracting plans, past performance, and life-cycle costs. (2) "Design-build" means a procurement process in which both the design and construction of a project are procured from a single entity. (3) "Design-build entity" means a partnership, corporation, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract. (4) "Project" means the construction of local wastewater treatment facilities, local solid waste facilities, or local water recycling facilities. (d) Design-build projects shall progress in a four-step process, as follows: (1) (A) The qualified entity shall prepare a set of documents setting forth the scope of the project. The documents may include, but are not limited to, the size, type, and desired design character of the project and site, performance specifications covering the quality of materials, equipment, and workmanship, preliminary plans or project layouts, or any other information deemed necessary to describe adequately the qualified entity's needs. The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California. (B) Any architect or engineer retained by the qualified entity to assist in the development of the project specific documents shall not be eligible to participate in the preparation of a bid with any design-build entity for that project. (2) (A) Based on the documents prepared in paragraph (1), the qualified entity shall prepare a request for proposals that invites interested parties to submit competitive sealed proposals in the manner prescribed by the qualified entity. The request for proposals shall include, but is not limited to, the following elements: 96 AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -12- (i) Identification of the basic scope and needs of the project or contract, the expected cost range, and other information deemed necessary by the qualified entity to inform interested parties of the contracting opportunity, to include the methodology that will be used by the qualified entity to evaluate proposals and specifically if the contract will be awarded to the lowest responsible bidder. (ii) Significant factors that the qualified entity reasonably expects to consider in evaluating proposals, including cost or price and all nonprice related factors. (iii) The relative importance of weight assigned to each of the factors identified in the request for proposals. (B) With respect to clause (iii) of subparagraph (A), if a nonweighted system is used, the qualified entity shall specifically disclose whether all evaluation factors other than cost or price when combined are: (i) Significantly more important than cost or price. (ii) Approximately equal in importance to cost or price. (iii) Significantly less important than cost or price. (C) If the qualified entity chooses to reserve the right to hold discussions or negotiations with responsive bidders, it shall so specify in the request for proposal and shall publish separately or incorporate into the request for proposal applicable rules and procedures to be observed by the qualified entity to ensure that any discussions or negotiations are conducted in good faith. (3) (A) The qualified entity shall establish a procedure to prequalify design-build entities using a standard questionnaire developed by the qualified entity. In preparing the questionnaire, the qualified entity shall consult with the construction industry, including representatives of the building trades and surety industry. This questionnaire shall require information including, but not limited to, all of the following: (i) If the design-build entity is a partnership, limited partnership, or other association, a listing of all of the partners, general partners, or association members known at the time of bid submission who will participate in the design-build contract, including, but not limited to, mechanical subcontractors. (ii) Evidence that the members of the design-build entity have completed, or demonstrated the experience, competency, capability, and capacity to complete projects of similar size, scope, or complexity, and that proposed key personnel have sufficient 96 -13 - AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 experience and training to competently manage and complete the design and construction of the project, as well as a financial statement that assures the special district that the design-build entity has the capacity to complete the project. (iii) The licenses, registration, and credentials required to design and construct the project, including information on the revocation or suspension of any license, credential, or registration. (iv) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance. (v) Any prior serious or willful violation of the California Occupational Safety and Health Act of 1973, contained in Part 1 (commencing with Section 6300) of Division 5 of the Labor Code or the federal Occupational Safety and Health Act of 1970 (Public Law 91-596), settled against any member of the design-build entity, and information concerning workers' compensation experience history and worker safety program. (vi) Information concerning any debarment, disqualification, or removal from a federal, state, or local government public works project. Any instance where an entity, its owners, officers, or managing employees submitted a bid on a public works project and were found to be nonresponsive, or were found by an awarding body not to be a responsible bidder. (vii) Any instance where the entity, its owner, officers, or managing employees defaulted on a construction contract. (viii) Any violations of the Contractors' State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), excluding alleged violations of federal or state law including the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or of Federal Insurance Contribution Act (FICA) withholding requirements settled against any member of the design-build entity. (ix) Information concerning the bankruptcy or receivership of any member of the design-build entity, including information concerning any work completed by a surety. (x) Information concerning all settled adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build entity during the five years preceding submission of a bid pursuant to this section, in which the claim, settlement, or judgment exceeds fifty thousand dollars ($50,000). 96 AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -14- Information shall also be provided concerning any work completed by a surety during this period. (xi) In the case of a partnership or other association, that is not a legal entity, a copy of the agreement creating the partnership or association and specifying that all partners or association members agree to be fully liable for the performance under the design-build contract. (B) The information required pursuant to this subdivision shall be verified under oath by the entity and its members in the manner in which civil pleadings in civil actions are verified. Infonnation that is not a public record pursuant to the California Public Records Act (Chapter 3.5 (cominencing with Section 6250) of Division 7 Title 1 of the Government Code) shall not be open to public inspection. (4) The qualified entity shall establish a procedure for final selection of the design-build entity. Selection shall be based on either of the following criteria: (A) A competitive bidding process resulting in lump sum bids by the prequalified design-build entities. Awards shall be made to the lowest responsible bidder. (B) A qualified entity may use a design-build competition based upon best value and other criteria set forth in paragraph (2) of subdivision (d). The design-build competition shall include the following elements: (i) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposal. However, the following minimum factors shall each represent at least 10 percent of the total weight of consideration given to all criteria factors; price, technical design and construction expertise, life-cycle costs over 15 years or more, skilled labor force availability, and acceptable safety record. (ii) Once the evaluation is complete, the top three responsive bidders shall be ranked sequentially from the most advantageous to the least. (iii) The award of the contract shall be made to the responsible bidder whose proposal is determined, in writing, to be the most advantageous. (iv) Notwithstanding any provision of this code, upon issuance of a contract award, the qualified entity shall publicly announce its award, identifying the contractor to which the award is made, 96 -15 - AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 along with a written decision supporting its contract award and stating the basis of the award. The notice of award shall also include the qualified entity's second and third ranked design-build entities. (v) For the purposes of this paragraph, "skilled labor force availability" shall be determined by the existence of an agreement with a registered apprenticeship program, approved by the California Apprenticeship Council, which has graduated apprentices in each of the preceding five years. This graduation requirement shall not apply to programs providing apprenticeship training for any craft that has been deemed by the Department of Labor and the Department of Industrial Relations to be an apprenticeable craft in the five years prior to enactment of this act. (vi) For the purposes of this paragraph, a bidder's "safety record" shall be deemed "acceptable" if their experience modification rate for the most recent three-year period is an average of 1.00 or less, and their average total recordable injury/illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category, or if the bidder is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code. (e) (1) Any design-build entity that is selected to design and build a project pursuant to this section shall possess or obtain sufficient bonding to cover the contract amount for nondesign services, and errors and omission insurance coverage sufficient to cover all design and architectural services provided in the contract. This section does not prohibit a general or engineering contractor from being designated the lead entity on a design-build entity for the purposes of purchasing necessary bonding to cover the activities of the design-build entity. (2) Any payment or performance bond written for the purposes of this section shall be written using a bond form developed by the qualified entity. (f) All subcontractors that were not listed by the design-build entity in accordance with clause (i) of subparagraph (A) of paragraph (3) of subdivision (d) shall be awarded by the design-build entity in accordance with the design-build process set forth by the qualified entity in the design-build package. All subcontractors bidding on contracts pursuant to this section shall 96 AB 642 -16 - 1 be afforded the protections contained in Chapter 4 (commencing 2 with Section 4100) of Part 1. The design-build entity shall do both 3 of the following: 4 (1) Provide public notice of the availability of work to be 5 subcontracted in accordance with the publication requirements 6 applicable to the competitive bidding process of the qualified 7 entity. 8 (2) Provide a fixed date and time on which the subcontracted 9 work will be awarded in accordance with the procedure established 10 pursuant to this section. 11 (g) The minimum performance criteria and design standards 12 established pursuant to paragraph (1) of subdivision (d) shall be 13 adhered to by the design-build entity. Any deviations from those 14 standards may only be allowed by written consent of the qualified 15 entity. 16 (h) The qualified entity may retain the services of a design 17 professional or construction project manager, or both, throughout 18 the course of the project in order to ensure compliance with this 19 section. 20 (i) Contracts awarded pursuant to this section shall be valid until 21 the project is completed. 22 0) Nothing in this section is intended to affect, expand, alter, 23 or limit any rights or remedies otherwise available at law. 24 (k) (1) If the qualified entity elects to award a project pursuant 25 to this section, retention proceeds withheld by the qualified entity 26 from the design-build entity shall not exceed 5 percent if a 27 performance and payment bond, issued by an admitted surety 28 insurer, is required in the solicitation of bids. 29 (2) In a contract between the design-build entity and the 30 subcontractor, and in a contract between a subcontractor and any 31 subcontractor thereunder, the percentage of the retention proceeds 32 withheld may not exceed the percentage specified in the contract 33 between the qualified entity and the design-build entity. If the 34 design-build entity provides written notice to any subcontractor 35 who is not a member of the design-build entity, prior to or at the 36 time the bid is requested, that a bond may be required and the 37 subcontractor subsequently is unable or refuses to furnish a bond 38 to the design-build entity, then the design-build entity may withhold 39 retention proceeds in excess of the percentage specified in the 40 contract between the qualified entity and the design-build entity 96 -17 - AB 642 1 from any payment made by the design-build entity to the 2 subcontractor. 3 (l) Each qualified entity that elects to proceed under this section 4 and uses the design-build method on a public works project shall 5 do both of the following: 6 (1) Notify the Legislative Analyst's Office upon initiation of 7 the project and upon completion of the project. 8 (2) Submit to the Legislative Analyst's Office before December 9 1, 2012, a report containing a description of the public works 10 project procured through the design-build process pursuant to this 11 section and completed after January 1, 2009, and before November 12 1, 2012. The report shall include, but shall not be limited to, all of 13 the following information: 14 (A) The type of project. 15 (B) The gross square footage of the project. 16 (C) The design-build entity that was awarded the project. 17 (D) The estimated and actual project costs. 18 (E) A description of any written protests concerning any aspect 19 of the solicitation, bid, proposal, or award of the design-build 20 project, including the resolution of the protests. 21 (F) An assessment of the prequalification process and criteria. 22 (G) An assessment of the effect of retaining 5-percent retention 23 on the project. 24 (H) A description of the Labor Force Compliance Program and 25 an assessment of the project impact, where required. 26 (I) A description of the method used to award the contract. If 27 best value was the method, the report shall describe the factors 28 used to evaluate the bid, including the weighting of each factor 29 and an assessment of the effectiveness of the methodology. 30 (J) An assessment of the project impact of "skilled labor force 31 availability." 32 (K) An assessment of the most appropriate uses for the 33 design-build approach. 34 (m) Any qualified entity that elects not to use the authority 35 granted by this section may submit a report to the Legislative 36 Analyst's Office explaining why the qualified entity elected to not 37 use the design-build method. 38 (n) (1) Any quaked entity that wants to utilize a design-build 39 project authorized under this section must notify the Governor's 40 Office of Planning and Research of its intent by clearly stating on 96 AB 642 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -18- its California Environmental Quality Act compliance forms that the qualified entity is seeking an election to proceed under this section. (2) The Office of Planning and Research shall keep track of the number of applications submitted pursuant to this subdivision, and shall notes any qualified entity with a prospective project submitted after the limitation, specified in paragraph (2) of subdivision (a), has been met that the quaked entity is not eligible to proceed with the project pursuant to this section. (3) Any qualified entity that elects not to use this authority previously granted by this section shall notify the Office of Planning and Research immediately so that the office can consider additional applications to utilize a design-build project as authorized by this section. (n) The Legislative Analyst shall do both of the foil (1) Notify the qualified entity with a prospeetive p the litnitation speeified in paragraph (2) of subdivision (a) has been met and that the qualified entity sliall not be eligible to proeeed with the projeet pursuant to this artiele. (2) Report to the Legislature oa the use of the design build (o) The Legislative Analyst shall report to the Legislature on the use of the design-build method by qualified entities pursuant to this section, including the information listed in subdivision (I). The report may include recommendations for modifying or extending this section, and shall be submitted on either of the following dates, whichever occurs first: f1k) (I) Within one year of the completion of the 20 projects, if the projects are completed prior to January 1, 2019. f~) (2) No later than January 1, 2020. 20194. (a) No qualified entity shall enter into an agreement with any state public entity to use the design-build procedure for water projects. (b) A qualified entity may use state funds for local water projects utilizing the design-build procedure. (c) Except as provided in this section, nothing in this act shall be construed to affect the application of any other law. 20195. This article shall remain in effect until January 1, 2020, or until the date upon which the Legislative Analyst has submitted 96 -19- AB 642 1 the report required pursuant to this article to the Legislature, 2 whichever occurs first, and as of the date is repealed, unless a later 3 enacted statute, that is enacted before either of the dates specified 4 in this section, deletes or extends those dates. 5 SEC. 3. No reimbursement is required by this act pursuant to 6 Section 6 of Article XIII B of the California Constitution because 7 the only costs that may be incurred by a local agency or school 8 district will be incurred because this act creates a new crime or 9 infraction, eliminates a crime or infraction, or changes the penalty 10 for a crime or infraction, within the meaning of Section 17556 of I 1 the Government Code, or changes the definition of a crime within 12 the meaning of Section 6 of Article XIII B of the California 13 Constitution. O 96 SECTION 1. Division 26.7 (commencing with Section 79700) is added to the Water Code, to read: DIVISION 26.7. THE SAFE, CLEAN, RELIABLE DRINKING WATER SUPPLY ACT OF 2008 CHAPTER 1. SHORT TITLE 79700. This division shall be known and may be cited as the Safe, Clean, Reliable, Drinking Water Supply Act of 2008. CHAPTER 2. FINDINGS AND DECLARATIONS 79701. The people of California find and declare all of the following: (a) Safeguarding supplies of clean, safe drinking water to California's homes, businesses, and farms is an essential responsibility of government, and critical to protecting the quality of life for Californians. (b) Providing adequate supplies of clean, safe drinking water is vital to keeping California's economy growing and strong. (c) Encouraging water conservation and recycling are common-sense methods to make more efficient use of existing water supplies. (d) Protecting lakes, rivers, and streams from pollution, cleaning up polluted groundwater supplies, and protecting water sources that supply the entire state are crucial to providing a reliable supply of drinking water. CHAPTER 3. DEFINITIONS { 00053417. DOC. } 1 79702. Unless the context otherwise requires, the definitions set forth in this section govern the construction of this division, as follows: (a) "Bay Delta Conservation Plan" means the final plan prepared pursuant to the Planning Agreement regarding the Bay Delta Conservation Plan, dated October 6, 2006. (b) "Bay-Delta Estuary" means the delta, Suisun Bay, and Suisun Marsh. (c) "CALFED Bay -Delta Program" means the program described in the Record of Decision dated August 28, 2000. (d) "Committee" means the Safe Drinking Water Finance Committee created by Section 79782. (e) "Commission" means the California Water Commission (Article 2 (commencing with Section 150) of Chapter 2 of Division 1). (f) "Delta" means the Sacramento-San Joaquin Delta as defined in Section 12220. (g) "Delta conveyance facilities" means facilities that convey water directly from the Sacramento River to the State Water Project or federal Central Valley Project pumping facilities in the south delta. (h) "Department" means the Department of Water Resources. (i) "Director" means the Director of Water Resources. 0) "Disadvantaged community" has the meaning set forth in subdivision (a) of Section 79505.5. (k) "Fund" means the Safe Drinking Water Fund of 2008 created by Section 79720. (1) "Integrated regional water management plan" means a comprehensive plan for a defined geographic area, the specific development and content of which shall be defined by guidelines { 00053417. DOC. } 2 adopted by the department. At a minimum, an integrated regional water management plan describes the major water-related objectives and conflicts within a region, considers a broad variety of water management strategies, and identifies the appropriate combination of water demand and supply management alternatives, water quality protections, and environmental stewardship actions to provide long-term, reliable, and high-quality water supplies and to protect the environment. (m) "Nonprofit organization" means an organization qualified to do business in California and qualified under Section 501(c) (3) of Title 26 of the United States Internal Revenue Code. (n) "Public agency" means a state agency or department, district, joint powers authority, city, county, city and county, or other political subdivision of the state. (o) "Secretary" means the Secretary of the Resources Agency. (p) "State General Obligation Bond Law" means the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code). (q) "Economically distressed area" means a municipality with a population of 20,000 persons or less, a rural county, or a reasonably isolated and divisible segment of a larger municipality where the segment of the population is 20,000 persons or less, with a financial hardship, as determined by the department after considering such factors as median income of the residents, rate of unemployment, and low population density. CHAPTER 4. GENERAL PROVISIONS 79710. An amount that equals not more than 5 percent of the funds allocated for a grant program pursuant to this division may be used { 00053417. DOC. } 3 to pay the costs to administer that program. 79710.5. Up to 10 percent of funds allocated for each program funded by this division may be used to finance planning and monitoring necessary for the successful design, selection, and implementation of the projects authorized under that program. This section shall not otherwise restrict funds ordinarily used by an agency for "preliminary plans, "working drawings," and "construction" as defined in the annual Budget Act for a capital outlay project or grant project. Water quality monitoring shall be integrated into the surface water ambient monitoring program administered by the State Water Resources Control Board. 79710.7. Funds made available pursuant to this division shall be appropriated only in the Budget Act of the first year of each Legislative Session. 79711. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development or implementation of programs or projects authorized or funded under this division. 79712. (a) Prior to disbursing grants pursuant to this division, each state agency that is required to administer a competitive grant program under this division shall develop project solicitation and evaluation guidelines. The guidelines may include a limitation on the dollar amount of grants to be awarded. (b) Prior to disbursing grants, the state agency shall conduct three public meetings to consider public comments prior to finalizing the guidelines. The state agency shall publish the draft solicitation and evaluation guidelines on its Internet Web site at least 30 days before 100053417.DOC. }4 the public meetings. One meeting shall be conducted at a location in northern California, one meeting shall be conducted at a location in the central valley, and one meeting shall be conducted at a location in southern California. Upon adoption, the state agency shall transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature. 79713. It is the intent of the people that the investment of public funds pursuant to this division should result in public benefits. 79714. The State Auditor shall annually conduct a programmatic review and an audit of expenditures from the fund. The State Auditor shall report its findings annually on or before March 1 to the Governor and the Legislature, and shall make the findings available to the public. 79715. Funds provided by this division shall not be used to support or pay for the costs of environmental mitigation measures or compliance obligations of any party except as part of the environmental mitigation costs of projects financed by this division. Funds provided by this division may be used for environmental enhancements or other public benefits. 79716. Funds provided by this division shall not be expended to pay the costs of the design, construction, operation, or maintenance of delta conveyance facilities. Those costs shall be the responsibility of the agencies that benefit from the design, construction, operation, or maintenance of those facilities. { 00053417. DOC. } 5 79717. Nothing in this division shall limit or otherwise affect the application of Sections 10505, 10505.5, 11128, 11460, 11461, 11462, 11463 and Sections 12200 through 12220, inclusive. 79718. The Legislature may enact legislation necessary to implement programs funded by this division. CHAPTER 5. SAFE DRINKING WATER FUND OF 2008 79720. The proceeds of bonds issued and sold pursuant to this division shall be deposited in the Safe Drinking Water Fund of 2008, which is hereby created. CHAPTER 6. WATER SUPPLY RELIABILITY 79721. The sum of two billion six hundred million dollars ($2,600,000,000) is available, upon appropriation by the Legislature, from the fund to the department for competitive grants in accordance with Section 79722. 79722. (a) Except as provided in subdivision (g), the department shall award grants to eligible projects that implement an adopted integrated regional water management plan. (b) An urban water supplier that does not prepare, adopt, and submit its urban water management plan in accordance with the Urban Water Management Planning Act (Part 2.6 (commencing with Section 10610) of Division 6) is ineligible to receive funds made available pursuant to Section 79721 until the urban water management plan is prepared and submitted in accordance with the requirements of that act. { 00053417.OOC. } 6 (c) For the purposes of awarding a grant under this chapter, the department shall require a local cost share of not less than 50 percent of the total costs of the projects. The department may waive or reduce the cost-sharing requirement for projects that directly benefit a disadvantaged community or an economically distressed area. (d) Eligible projects include , but are not limited to, all of the following: (1) Agricultural and urban water use efficiency implementation projects, as well as feasibility studies, technical assistance, education, and public outreach, and projects that result in water savings, increased instream flow, improved water quality, or increased energy efficiency. (2) Recycling, reclamation, water treatment for the recovery of water supplies, desalination, and associated facilities, including distributions systems. (3) Groundwater and surface storage projects, and conjunctive use and reservoir reoperations projects. (4) Groundwater contamination prevention, cleanup, and treatment, and other water quality projects necessary to protect existing or potential water supplies. The implementation of a project financed pursuant to this paragraph does not relieve a responsible party or liable person from that person's obligation under existing state or federal law to clean up or remediate, or otherwise treat, contaminated water. (5) Projects that reduce contributions to climate change from water management systems. (6) Projects that enhance the adaptability to climate change of water management systems. (7) Other projects that meet the requirements of Section 75026 of the Public Resources Code. (e) Eligible applicants are public agencies, public utilities, and { 00053417. DOC. } 7 mutual water companies. To be eligible for funding under Section 79721, projects proposed by public utilities that are regulated by the Public Utilities Commission and mutual water companies shall have a clear and definite public purpose and shall benefit the customers of those respective water systems. (f) The funding provided in Section 79721 shall be allocated to each hydrologic region as identified in the California Water Plan in accordance with this subdivision. For the South Coast hydrologic region, the department shall establish three funding areas that reflect the watersheds of San Diego County (designated as the San Diego subregion), the Santa Ana River watershed and southern Orange County (designated as the Santa Ana subregion), and the Los Angeles and Ventura County watersheds (designated as the Los Angeles subregion), and shall allocate funds to those areas in accordance with this subdivision. The North and South Lahontan hydrologic regions shall be treated as one area for the purpose of allocating funds. The department may recognize multiple integrated regional water management plans in each of the areas allocated funding. Funds made available by this chapter shall be allocated as follows: (1) North Coast (2) San Francisco Bay (3) Central Coast (4) Los Angeles subregion (5) Santa Ana subregion (6) San Diego subregion (7) Sacramento River (8) San Joaquin River (9) Tulare/Kern (10) North/South Lahonton (11) Colorado River Basin $120,000,000 $288,000,000 $145,000,000 $409,000,000 $260,000,000 $192,000,000 $180,000,000 $154,000,000 $158,000,000 $125,000,000 $119,000,000 { 00053417. DOC. } 8 (12) Interregional $450,000,000 (g) Interregional funds may be expended directly or granted by the department to address multiregional needs or state priorities, including, but not limited to, any of the following: (1) Investing in new water technology development and deployment. (2) Meeting state water recycling goals. (3) Adapting to climate change impacts. (4) Reducing contributions to climate change. (5) Other projects to improve statewide water management systems. (6) Other projects and activities designed to meet the needs of disadvantaged communities or economically distressed areas. (7) Fifty million dollars ($50,000,000) shall be expended for costs incurred in connection with the provision of recreation and fish and wildlife enhancement at state water projects. The funds shall be available to meet the cost associated with the planning, construction, operation, and maintenance for recreation and fish and wildlife enhancement. 79723. (a) The sum of five hundred million dollars ($500,000,000) is available, upon appropriation by the Legislature, from the fund to the department for grants and expenditures for the planning, design, and construction of local and regional conveyance projects that support regional and interregional connectivity and water management. Projects shall be consistent with an adopted integrated regional water management plan and shall provide one or more of the following benclits: (1) Improvements in regional or interregional water supply and water supply reliability. (2) Mitigation of conditions of groundwater overdraft, saline water intrusion, water quality degradation, or subsidence. { 00053417. DOC. } 9 (3) Adaptation to the impacts of hydrologic changes. (4) Improved water security from drought, natural disasters, or other events that could interrupt imported water supplies. (5) Providing safe drinking water for disadvantaged communities and economically distressed areas. (b) Not more than 10 percent of the funds provided by this section shall be available for planning, investigations, studies, and monitoring. (c) The department shall require a cost share of not less than 50 percent of total project costs from non-state sources. The department may waive or reduce the cost share requirement for projects that directly benefit disadvantaged communities or economically distressed areas. CHAPTER 7. DELTA SUSTAINABILITY 79730. (a) The Bay-Delta Estuary is a unique and irreplaceable combination of environmental and economic resources. Current management and use of the delta is not sustainable, and results in a high level of conflict among various interests. Future delta sustainability is threatened by changing hydrology due to climate change, water diversions, flood risk, seismic events, nonnative species, toxics, and other environmental problems. Future management of the delta must improve delta ecosystem health and improve the means of delta water conveyance in order to protect drinking water quality, improve water supply reliability, restore ecosystem health, and preserve agricultural and recreational values in the delta, while providing to counties and watersheds of origin assurances that their priority to water resources will be protected and that programs or facilities implemented or constructed in the delta will not result in redirection of unmitigated, significant adverse impacts to the counties (00053417.DOC. )10 and watershed of origin. Many sources of funding will be needed to implement improved delta management. (b) This chapter provides state funding for public benefits associated with projects needed to assist in the delta's sustainability as a vital resource for fish, wildlife, water quality, water supply, agriculture, and recreation. (c) In implementing this chapter, the department, taking into consideration the recommendations of the Blue Ribbon Task Force established by Executive Order S-17-06 and the Bay-Delta Conservation Plan, shall develop, in cooperation with the Department of Fish and Game and the State Water Resources Control Board, a comprehensive delta sustainability program that includes ecosystem and water conveyance improvements, and that meets the following criteria: (1) Reduces impacts to native fish caused by the operation of the export pumps and improves the operational flexibility and ability of the State Water Project and the Central Valley Project to provide the ecosystem and water supply benefits described by this subdivision. (2) Provides conditions that will allow for habitat improvements for fish and wildlife in the delta, the recovery of listed species, and sustainable ecosystem functions. (3) Provides improved water supply reliability and conveyance for the State Water Project and the Central Valley Project and for water transfers. (4) Reduces the quantity of bromide, total organic carbon, and total dissolved solids in the water pumped at state and federal water pumping facilities to protect the public health and improves the ability to manage salinity. (5) Reduces vulnerability to seismic events in or near the delta { 000534 U. DOC. } 1 1 and provides flexibility to manage uncertainties associated with climate change and future fishery needs. (6) Promotes ecosystem restoration of the delta. (7) Facilitates wet-year water storage for use in dry years. (d) The Legislature may only amend or repeal this section by a statute that is passed in each house by rollcall vote entered into the journal, two-thirds of the membership concurring. 79731. The sum of two billion four hundred million dollars ($2,400,000,000) is available, upon appropriation by the Legislature, from the fund for grants and direct expenditure, as follows: (a) One billion dollars ($1,000,000,000) for projects that provide public benefits and support delta sustainability options, including projects that do any of the following: (1) Ensure that urban and agricultural water supplies derived from the delta, including water supplies used within the delta, are not disrupted because of catastrophic failures of delta levees resulting from earthquakes, floods, land sinking, rising ocean levels, or other forces. (2) Improve the quality of drinking water derived from the delta. (3) Provide physical improvements or other actions to create waterflow and water quality conditions within the delta to provide adequate habitat for native fish and wildlife. (4) Protect transportation and other vital infrastructure in and around the delta. (5) Facilitate other projects that provide public benefits and support delta sustainability options approved by the Legislature, including costs associated with planning, monitoring, and design of alternatives, and project modifications and adaptations necessary to achieve the goals of this chapter . 1000534 U.DOC.112 (b) One billion four hundred million dollars ($1,400,000,000) for projects to protect and enhance the sustainability of the delta ecosystem, including any of the following: (1) Projects for the development and implementation of the Bay Delta Conservation Plan that promote the conservation, as that term is defined in Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code, of covered species, and for native fishery restoration projects that are consistent with the findings of the Blue Ribbon Task Force established by Executive Order S-17-06. The projects shall be implemented through a cooperative effort among regulatory agencies, regulated and potentially regulated entities, and affected parties, including state and federal water contractors. These funds may be expended for the preparation of environmental documentation and environmental compliance. (2) Other projects to protect and restore native fish and wildlife dependent on the delta ecosystem, including the acquisition of water rights and the removal or reduction of undesirable invasive species. (3) Projects to reduce greenhouse gas emissions from exposed delta soils. 79732. The expenditure of any portion of the funds provided pursuant to this chapter is contingent on the adoption and implementation of a comprehensive plan for delta sustainability to implement the program described in subdivision (c) of Section 79730. 79733. The secretary shall adopt the plan described in Section 79732 and submit it to the Legislature. No later than April 1 of each year following the submission of the plan, the secretary shall evaluate the progress in implementing the plan, determine if adequate progress is being made, and submit those findings to the Legislature along with recommendations to improve the implementation of the plan. 100053417. DOC. )13 CHAPTER 8. STATEWIDE WATER SYSTEM OPERATIONAL IMPROVEMENT 79740. (a) The sum of two billion five hundred million dollars ($2,500,000,000) is available, upon appropriation by the Legislature from the fund to the commission, for public benefits associated with water storage projects that improve the operation of the state water system, are cost effective, capable of timely implementation, and that provide a net improvement in ecosystem and water quality conditions, in accordance with this chapter. (b) Projects shall be selected through a competitive public process that ranks potential projects based on their cost-effectiveness in providing public benefits pursuant to criteria established under this chapter. (c) Notwithstanding Section 162, the commission is authorized to make the determinations, findings, and recommendations required of it by this chapter independent of the views of the director. All final actions by the commission in implementing this chapter shall be taken by a majority of the members of the commission at a public meeting noticed and held pursuant to the Bagley-Keene Open Meeting Act (Government Code Section 11120 et. seq). (d) Any project constructed with funds provided by this chapter shall be subject to the requirements of Section 11590. 79741. Projects for which the public benefits are eligible for funding under this chapter consist of any of the following: (a) Surface storage projects identified in the CALFED Bay-Delta Program Record of Decision, dated August 28, 2000, excluding the expansion of Shasta Reservoir. { 00053417. DOC. } 14 (b) Groundwater storage projects and groundwater contamination prevention or remediation projects that provide water storage benefits. (c) Conjunctive use and reservoir reoperation projects. (d) Regional and local surface storage projects that improve the operation of water systems in the state and provide public benefits. 79742. (a) Funds allocated pursuant to this chapter may be expended solely for the following public benefits associated with water storage projects: (1) Ecosystem improvements, including reduced water diversions, changing the timing of water diversions, improvement in flow conditions, temperature, or other benefits that contribute to restoration of aquatic ecosystems and native fish and wildlife, including those ecosystems and fish and wildlife in the delta. (2) Water quality improvements in the delta, or in other river systems, that provide significant public trust resources, or that clean up and restore groundwater resources. (3) Flood control benefits, including, but not limited to, increases in flood reservation space in existing reservoirs by exchange for existing or increased water storage capacity in response to the effects of changing hydrology and decreasing snow pack on California's water and flood management system. (4) Reduction in greenhouse gas emissions related to water system operation. (b) For the purposes of this chapter, "public benefits" does not include the costs of environmental mitigation measures or compliance obligations established prior to the enactment of this division under state or federal law. J00053417. DOC. } 15 79743. In consultation with the Department of Fish and Game, the State Water Resources Control Board, and the department, the commission shall develop and adopt, by regulation, methods for quantification and management of public benefits described under Section 79742 not later than December 15, 2009. The regulations shall include the priorities and relative environmental value of ecosystem benefits as determined by the Department of Fish and Game and the priorities and relative environmental value of water quality benefits as determined by the State Water Resources Control Board. 79744. (a) Except as provided under subdivision (b), no funds allocated pursuant to this chapter may be appropriated for a project unless all of the following conditions are met: (1) The commission adopts the regulations specified in Section 79743 and specifically quantifies and makes public the cost of the public benefits associated with the project. (2) The department enters into a binding and enforceable agreement with each party who will derive benefits, other than public benefits as defined in Section 79742, from the project that ensures the party will pay its share of the total costs of the project. The benefits available to a party shall be consistent with that party's share of total project costs. (3) The department enters into a binding and enforceable agreement with each public agency identified in Section 79743 that administers the public benefits, after that agency makes a finding that the public benefits of the project for which that agency is responsible meet all the requirements of this chapter, to assure that the public contribution of funds pursuant to this chapter achieves the public benefits identified for the project. (4) The commission holds a public hearing for the purposes of providing an opportunity for the public to review and comment on 100053417.DOC. } 16 the information required to be prepared pursuant to this subdivision. (5) The commission submits the information required to be prepared pursuant to this section to the Legislature as part of any request for any appropriation of funds for a project funded pursuant to this chapter. (6) For a project identified in subdivision (a) of Section 79741, all of the following additional conditions are met: (A) Feasibility studies are completed. (B) The director finds and determines that the project is feasible, is consistent with all applicable laws and regulations, and will advance the objectives of the CALFED Bay-Delta Program. (C) All environmental documentation associated with the project is completed, and all other federal, state, and local approvals, certifications, and agreements required to be completed in order to fund the surface storage project are obtained. (b) Notwithstanding subdivision (a), the Legislature may appropriate funds available under this chapter for the completion of environmental documentation and permitting of a project if it determines that all of the conditions of this section have been met except for the conditions established under subparagraph (C) of paragraph (6) of subdivision (a). (c) At the time a request for an appropriation of funds that exceeds two hundred fifty million dollars ($250,000,000) for a surface storage project is made pursuant to this chapter, the Legislative Analyst's Office shall prepare and submit to the Legislature a review and audit that verifies the cost effectiveness, financing, and public benefits of the proposed surface storage project. 79745. (a) The public benefit cost share of a project funded pursuant to the chapter, other than a project defined under { 00053417.DOC. } 17 subdivision (c) of Section 79741, may not exceed 50 percent of the total costs of any project funded under this chapter. (b) No CALFED Bay-Delta surface storage projects may be funded unless it provides ecosystem improvements as described in paragraph (1) of subdivision (a) of Section 79742 that are at least 50 percent of total public benefits of the project funded under this chapter. 79746. (a) No project identified in subdivision (a) of Section 79741 shall be eligible for funding under this chapter unless by January 1, 2012, all of the following conditions are met: (1) All feasibility studies are complete and draft environmental documentation is available for public review. (2) The director makes a finding that the project is feasible, and meets the objectives of the CALFED Bay-Delta Program. (3) The director receives commitments for not less than 75 percent of local cost share of the project. (b) If compliance with subdivision (a) is delayed by litigation or failure to promulgate regulations, the date in subdivision (a) shall be extended by the director for a time period that does not exceed the time period of the delay. 79747. Surface storage projects funded pursuant to this chapter and described in subdivision (a) of Section 79741 may be made a unit of the Central Valley Project as provided in Section 11290 and may be financed, acquired, constructed, operated, and maintained pursuant to Part 3 (commencing with Section 11100) of Division 6. CHAPTER 9. CONSERVATION AND WATERSHED PROTECTION (00053417. DOC. ) 18 79770. The sum of one billion dollars ($1,000,000,000) is available, upon appropriation by the Legislature from the fund, for expenditures and grants for ecosystem and watershed protection and restoration projects, including, but not limited to, all of the following watersheds: (a) The San Joaquin River watershed. (b) The Kern River and Tulare Basin watersheds. (c) The Salton Sea and Colorado River watersheds. (d) The Los Angeles River watershed. (e) The San Gabriel River watershed. (f) The Santa Ana River watershed. (g) The Klamath River watershed, including the Trinity, Scott, and Shasta Rivers and watersheds. (h) North coast watersheds. (i) San Francisco Bay watersheds. 0) Central coast watersheds. (k) South coast watersheds. (1) Lake Tahoe Basin watershed. (m) The Sacramento River watershed, including the Yolo Bypass. (n) San Diego County coastal watersheds. (o) The Ventura River watershed. (p) The Sierra Nevada Mountain watersheds. (q) The Mojave River watershed. 79771. (a) Funds provided for the Sacramento River and San Joaquin River watersheds under Section 79770 shall be available for projects consistent with the ecosystem restoration program element of the California Bay-Delta Program, or its successor, or the San Joaquin River Parkway Master Plan. (b) Funds provided for Salton Sea watershed projects under Section 79770 shall be available for Salton Sea restoration activities identified for "Period I" in the Resources Agency report entitled (00053417.DOC.) 19 "Salton Sea Ecosystem Restoration Program Preferred Alternative Report and Funding Plan," dated May 2007. (c) Funds provided for the Lake Tahoe Basin watershed under Section 79770 shall be available for projects consistent with the Lake Tahoe Environmental Improvement Program. (d) Funds provided for the Los Angeles River and San Gabriel River watersheds under Section 79770 shall be available pursuant to Section 79508, and for projects identified in the Los Angeles River Revitalization Master Plan. 79772. (a) The sum of eighty-five million dollars ($85,000,000) is available, upon appropriation by the Legislature from the fund, to the Department of Fish and Game for expenditures and grants to protect the delta ecosystem and the state's water supply from invasive species, including, but not limited to, asiatic clams, zebra mussels, quagga mussels, and New Zealand mud snails. (b) At least fifty million dollars ($50,000,000) of the funds provided pursuant to subdivision (a) shall be available for grants to public agencies, including water agencies, to pay for capital expenditures associated with the control of invasive species, including, but not limited to, chlorination facilities, habitat modifications, and monitoring equipment. The Department of Fish and Game shall administer the grant program. (c) The Legislature, by statute, shall establish requirements for both of the following: (1) Repayment of grant funds made available pursuant to this section in the event of cost recovery from parties responsible for the introduction of invasive species that affect the delta ecosystem and the state's water supply. (2) Recipients of grants to make reasonable efforts to recover costs from parties described in paragraph (1). { 00053417. DOC. }20 79773. For restoration and ecosystem protection projects under this chapter, the services of the California Conservation Corps or community conservation corps shall be used whenever feasible. 79774. Funds provided under this chapter may be appropriated to the Resources Agency, the Department of Fish and Game, The Wildlife Conservation Board, the California Conservation Corps, the Department of Parks and Recreation, or to state conservancies for expenditures and grants consistent with this chapter and other applicable laws. 79774.1. Of the funds made available pursuant to Section 79770, not less than two hundred million dollars ($200,000,000) shall be available to the State Coastal Conservancy for coastal watershed projects, of which not less than forty million dollars ($40,000,000) shall be available for projects in the Santa Ana River Watershed. 79774.2. Of the funds provided in Section 79770, not less than one hundred million dollars ($100,000,000) shall be available to the Wildlife Conservation Board for direct expenditure or grants for the acquisition of water rights from willing sellers and the conveyance of water for the benefit of migratory birds on wildlife refuges and wildlife habitat areas subject to Section 3406(d) of the federal Central Valley Project Improvement Act (Public Law 102-575). 79774.3. Of the funds provided in Section 79770, not less than two hundred million dollars ($200,000,000) shall be available to the Wildlife Conservation Board for direct expenditure or grants for the protection or restoration of watershed lands that provide sources of ( 00053417. DOC. )21 drinking water or rivers and streams that support species listed as threatened or endangered under state or federal law. 79774.5. For the purposes of this chapter, the terms "restoration" and "protection" have the meanings set forth in Section 75005 of the Public Resources Code. 79774.6. The sum of one hundred fifty million dollars ($150,000,000) is available, upon appropriation by the Legislature from the fund, to the Wildlife Conservation Board, in consultation with the California Department of Forestry and Fire Protection, for grants and direct expenditures for watershed restoration in fire damaged areas, and for fuel load reduction and other projects to reduce the potential for watershed damage from wildfires to protect water quality, fish, and wildlife. 79774.7. The sum of three hundred million dollars ($300,000,000) is available, upon appropriation by the Legislature from the fund, to the Department of Fish and Game and the State Coastal Conservancy for grants and expenditures for projects that improve fish passage on rivers and streams, including barrier removal, sediment management, and related watershed restoration. CHAPTER 10. GROUNDWATER PROTECTION AND WATER QUALITY 79775. The sum of four hundred million dollars ($400,000,000) is available, upon appropriation by the Legislature from the fund, for expenditures, grants, and loans for projects to prevent or reduce the contamination of groundwater that serves as a source of drinking water. Projects shall be consistent with an adopted integrated 100053417.DOC. }22 regional water management plan. Except as provided in subdivision (d), funds appropriated pursuant to this section shall be available to the State Water Resources Control Board for projects necessary to protect public health by preventing or reducing the contamination of groundwater that serves as a major source of drinking water for a community. (a) Projects shall be prioritized based upon the following criteria: (1) The threat posed by groundwater contamination to the affected community's overall drinking water supplies, including the need for treatment of alternative supplies if groundwater is not available due to contamination. (2) The potential for groundwater contamination to spread and reduce drinking water supply and water storage for nearby population areas. (3) The potential of the project, if fully implemented, to enhance local water supply reliability. (4) The potential of the project to increase opportunities for groundwater recharge and optimization of groundwater supplies. (b) The board shall give additional consideration to projects that meet any of the following criteria: (1) The project is implemented pursuant to a comprehensive basin-wide groundwater quality management and remediation plan or is necessary to develop a comprehensive groundwater plan. (2) Affected groundwater provides a local supply that, if contaminated and not remediated, will require import of additional water from outside the region. (3) The project will serve an economically disadvantaged community or an economically distressed area. {00053417. DOC. }23 (4) The project addresses contamination at a site where the responsible parties have not been identified, or where the responsible parties are unwilling or unable to pay for cleanup. (c) Of the amount made available by this section, up to one hundred million dollars ($100,000,000) shall be available for projects that meet the requirement of this section and the following criteria. (1) The project is part of a basinwide management and remediation plan for which federal funds have been allocated. (2) The project addresses contamination at a site on the list maintained by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code or a site listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.). (d) Of the amount made available by this Section, forty million dollars ($40,000,000) shall be available to the State Department of Public Health for grants and direct expenditures to finance emergency and urgent actions in accordance with this section on behalf of disadvantaged communities and economically distressed areas to ensure that safe drinking water supplies are available to all Californians. (e) The Legislature, by statute, shall establish both of the following: (1) Requirements for repayment of grant funds in the event of cost recovery from parties responsible for the groundwater contamination. (2) Requirements for recipients of grants to make reasonable efforts to recover costs from parties responsible for groundwater contamination. 79776. The sum of one hundred million dollars ($100,000,000) is available, upon appropriation by the Legislature from the fund, { 00053417. DOC. } 24 to the State Water Resources Control Board for grants for small community wastewater treatment projects to protect water quality that meet the following criteria: (a) The project is for the planning, design, permitting, construction, or improvement of a wastewater treatment facility, sewer system, or related infrastructure necessary to meet water quality standards or prevent contamination of surface water or groundwater resources. (b) The project will serve a community with a population of 20,000 or less. (c) The project meets other standards that may be established by the State Water Resources Control Board with respect to the design, construction, financing, and operation of the project. 79777. (a) The sum of five hundred million dollars ($500,000,000) is available, upon for appropriation by the Legislature from the fund, to the State Water Resources Control Board for competitive grants and loans for stormwater management and water quality projects pursuant to this section. (b) Eligible projects shall assist in compliance with total maximum daily load (TMDL) implementation plans and be consistent with all applicable waste discharge permits. (c) Eligible projects include facilities and infrastructure to reduce, manage, and treat stormwater runoff, including, but not limited to: (1) Detention and retention basins. (2) Dry weather diversion facilities, trash filters, and screens. (3) Treatment wetlands creation and enhancement. (4) Stormwater runoff reduction projects, including permeable 100053417. DOC. } 25 surface installation, cisterns, and collection and treatment facilities for groundwater recharge. (5) Other stormwater management infrastructure for low impact development. (d) The board shall require not less than a 50 percent local cost share for grant funds, but may suspend or reduce the matching requirements for disadvantaged communities and economically distressed areas. (e) The board shall award grants on a competitive basis, considering the following criteria: (1) Water quality benefits of the project, including the project's ability to reduce impairment of the receiving water body. (2) Cost effectiveness. (3) Public health benefits of the project. (f) Eligible recipients shall include local public agencies and joint powers authorities. 79778. The sum of one hundred million dollars ($100,000,000) is available, upon appropriation by the Legislature from the fund, to the State Coastal Conservancy for projects that meet the requirements of the California Ocean Protection Act (Division 26.5 (commencing with Section 35500) of the Public Resources Code). The conservancy shall allocate the funds to the Ocean Protection Council to make grants to public agencies for projects to protect and improve water quality in areas of special biological significance, as defined in subdivision (f) of Section 36700 of the Public Resources Code. CHAPTER 11. WATER RECYCLING PROGRAM 79779. The sum of two hundred fifty million dollars ($250,000,000) is available, upon appropriation by the Legislature from the fund, to the State Water Resources Control Board 100053417. DOC. } 26 for grants and loans for water recycling projects. 79779.5. Eligible applicants under this chapter are public agencies, public utilities, and mutual water companies. To be eligible for funding under this chapter, projects proposed by public utilities that are regulated by the Public Utilities Commission and mutual water companies shall have a clear and definite public purpose and shall benefit the customers of those respective water systems. CHAPTER 12. FISCAL PROVISIONS 79780. (a) Bonds in the total amount ten billion eight hundred eighty-five million dollars ($10,885,000,000), not including the amount of any refunding bonds issued in accordance with Section 79792, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this division and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute valid and binding obligations of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both the principal of, and interest on, the bonds as the principal and interest become due and payable. (b) The Treasurer shall sell the bonds authorized by the committee pursuant to this section. The bonds shall be sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code. 79781. The bonds authorized by this division shall be prepared, { 00053417.DOC. }27 executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law, and all of the provisions of that law apply to the bonds and to this division and are hereby incorporated in this division as though set forth in full in this division, except Section 16727 of the Government Code shall not apply to the extent that it is inconsistent with any other provision of this division. 79782. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this division, Safe Drinking Water Finance Committee is hereby created. For purposes of this division, the Safe Drinking Water Finance Committee is "the committee" as that term is used in the State General Obligation Bond Law. (b) The committee consists of the Director of Finance, the Treasurer, the Controller, the Director of Water Resources, and the Secretary of the Resources Agency. Notwithstanding any other provision of law, any member may designate a deputy to act as that member in his or her place for all purposes, as though the member were personally present. (c) The Treasurer shall serve as chairperson of the committee. (d) A majority of the members of the committee shall constitute a quorum of the committee, and may act for the committee. 79783. The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this division to carry out the actions specified in this division and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. (00053417.DOC. }28 79784. "Board," as defined in Section 16722 of the Government Code for the purposes of compliance with the State General Obligation Bond Law, means the department. 79785. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year, and it is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act which is necessary to collect that additional sum. 79786. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this division, an amount that will equal the total of the following: (a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this division, as the principal and interest become due and payable. (b) The sum that is necessary to carry out the provisions of Section 79789, appropriated without regard to fiscal years. 79787. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account in accordance with Section 16312 of the Government Code for the purpose of carrying out this division. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this division. The board shall execute those documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated in accordance with { 00053417. DOC. } 29 this division. 79788. Notwithstanding any other provision of this division, or of the State General Obligation Bond Law, if the Treasurer sells bonds that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions, the Treasurer may maintain separate accounts for the bond proceeds invested and for the investment earnings on those proceeds, and may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds, as may be required or desirable under federal law in order to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state. 79789. For the purposes of carrying out this division, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this division. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, with interest at the rate earned by the money in the Pooled Money Investment Account, from proceeds received from the sale of bonds for the purpose of carrying out this division. 79790. All money deposited in the fund that is derived from premiums and accrued interest on bonds sold pursuant to this division shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. { 00053417. DOC. } 3 0 79791. Pursuant to Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code, the cost of bond issuance shall be paid out of the bond proceeds. These costs shall be shared proportionately by each program funded through this division. 79792. The bonds issued and sold pursuant to this division may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the electors of the state for the issuance of the bonds under this division shall include approval of the issuance of any bonds issued to refund any bonds originally issued under this division or any previously issued refunding bonds. 79793. The proceeds from the sale of bonds authorized by this division are not "proceeds of taxes" as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article. { 00053417. DOC. } 31 P "fl lant;Q1 pauP I 2/6/2008 Project Perata SBX2 2 CCRW Version C Compromise 12 -17 -07 Title -The Safe Drinking Water Act of 2008 -The Comprehensive Safe Drinking Water, -The Safe, Clean, Reliable Drinking Water Water Supply Reliability, and Delta Restoration Supply Act of 2008 Act of 2008. Total Cost $6.835 billion - $11.690 billion - $10.885 billion Findings & - States the importance of safeguarding a clean -Same as Perata, except adds that comprehensive -Same as Perata Declarations safe drinking water supply for CA's people and delta health and restoration improvements will economy, which is the responsibility of also help resolve litigation that threatens delta government. Encouraging water conservation health and CA economy. and water recycling; protecting lakes, rivers and streams; and protecting watersheds are crucial to providing a reliable drinking supply. Water Supply -$2.0 billion for list of water supply projects. -$2.2 billion for same list of water supply -$2.6 billion for same list of water supply Reliability - -Ag. & urban water efficiency projects, except add: projects, except add:. -- Recycling, reclamation, desalination - -Flood and floodplain mgmt. programs -- reduce contributions to climate from win -- Groundwater & surface storage, and reop -- Nonpoint source pollution cleanup systems -- Groundwater cleanup -- Projects to reduce water outages cause by -- enhance win system adaptability to climate -- Improve reliability and delivery of safe natural/human made disasters. change drinking water -- -Funds divided among 11 hydrologic regions. -- -Funds divided among 11 hydrologic regions. -- -Funds divided among 11 hydrologic regions. $600 million dedicated to interregional projects $450 million dedicated to interregional projects $400 million dedicated to interregional projects to be allocated by DWR. to be allocated by DWR to be allocated by DWR - - -$50 million for fish and wildlife enhancement - Matching fund waiver for disadvantaged at SWP communities or economically distressed areas. - Matching fund waiver for disadvantaged - Matching fund waiver for disadvantaged communities; no reference to economically -$500 million for local/regional communities or economically distressed areas. distressed areas. underground/surface storage projects. -$500 million to support regional and interregional connectivity and water management Delta -$2.4 billion for delta projects. -Same as Perata -Same as Perata, except as follows; Sustainability - -$1.0 billion for projects to provide public j benefits and support delta sustainability options, - Expenditures contingent on adoption and including: implementation of delta sustainability plan. - -- ensure no supply disruption due to catastrophic levee failure - Secretary to adopt plan, annually evaluate - -- improve drinking water quality progress and submit to Legislature - -- provide adequate fish and wildlife habitat - -- create sustainable land use patterns -Does not call for Bay Delta Conservation - -- protect infrastructure Steering Committee recommendations. - -- planning, monitoring, and design costs 100053418.DOC.1 Confidential Paize 2 2/6/2008 (00053418.130C.) - -$1.4 billion for projects to protect and enhance sustainability of the delta ecosystem, including: - - -BDCP projects consistent with Delta Vision - -- protect and restore native fish and wildlife - -- reduce GHG emissions from exposed soils - Expenditure of funds contingent upon adoption of plan for delta sustainability. -Bay Delta Steering Comm. recommends cost share formula for nonstate share of implementing Blue Ribbon Task Force findings. - Conveyance -DWR implement comprehensive plan including -Same as Perata, except add 3 criteria: -Same as Perata, except add 2 criteria: - both conveyance and ecosystem improvements -- Guides ecosystem restoration -- Promotes ecosystem restoration of the delta. that meets 5 criteria: -- Provides for conveyance of water deliveries for -- Facilitates wet year water storage for use in dry -- Reduce pumping impact on fish SWP, CVP, and water transfers years. -- Improves fish and wildlife habitat -- Provides conveyance capacity to store wet year -- Improves water supply reliability & supplies south of the delta for dry years conveyance for SWP & CVP and water transfers -- Reduces bromides, TOC, TDS at pumps -- Reduces seismic vulnerability and provides flexibility to manage future climate change and fishery needs -Funds cannot be expended on D &C of Delta -Same as Perata -Same as Perata water transfer facilities. Costs of all conveyance improvements are borne by agencies that benefit. Statewide N/A -$3.5 billion continuously appropriated to water -$2.5 billion available for appropriation to Water System infrastructure commission (CWIC) for water California Water Commission (CWC) for public Operation storage projects that improve operation of state benefits associated with water storage projects Improvement water system and provide public benefits. that improve state water system operations, cost -- Eligible projects are: effective, capable of timely implementation, and - -- Surface storage projects in CALFED ROD., provide net improvement in ecosystem and wq excluding Shasta conditions. - - -GW storage, CU, and reservoir re -op - -Same list of eligible projects except does not - - -GW contamination prevention or remediation include local conveyance and says local projects that provides storage benefits should improve water system operation in the - -- Regional and local surface storage /conveyance state and provide public benefits. enhancements that improve interregional water system operations - Projects p rioritized on magnitude of public (00053418.130C.) Cnnfidential Pa1?e 3 2/6/2008 (00053418.DOC.) benefits, which are same as "C" except: - Projects must provide measurable - -adds clean-up and restore GW resources to WQ improvements to the delta ecosystem or its improvements tributaries. - -omits emergency response - -adds reduction in GHG emissions related to -Funds are prioritized by magnitude of public water system operation benefits, which are identified as - -omits recreation -- Ecosystem - -Flood Control . CWC will make determination in consultation - -WQ improvements of the Delta or its tribs with DFG, SWRCB, and DWR. CWC to develop -- Emergency response and adopt by regulation quantification of public -- Recreation benefits by Dec 15, 2009. -DWR adopts regs. to quantify public benefits -All feasibility studies and environmental docs and identify appropriate public agencies to must be completed and permits obtained. administer public benefits. -DWR enter into binding agreements with -CWIC enter into contracts with beneficiaries beneficiaries and with administering public and with administering public agencies to assure agencies to assure benefits are commensurate benefits are commensurate with costs. with costs. -DWR Director must find project is feasible and -CWC holds public hearings to receive meets the objectives of the CALFED B -D comments on completed studies program. -CWC submits info to Legislature as part of -State cost share capped at 50 %. request for appropriation -All feasibility studies and contractual - Appropriated funds may be used to complete commitments for 75% of local cost sharing must environmental documentation and permitting of be complete. projects - Projects may be made a unit of CVP. -If a request exceeds $250 mil, LAO shall audit and submit report to Legislature verifying cost effectiveness, financing and public benefits. -State cost share capped at 50% - Project funded only if ecosystem improvements is a least 50% of the public benefits. Following must be met by Jan 1, 2012 -All feasibility studies and envir docs complete and available for public review (00053418.DOC.) Cnnfidentinl Page 4 2/6/2008 (00053418.DOC. ) - Director find project is feasible and advance CALFED objectives. - Director receive commitment for at least 75% of local cost share - Pro'ects ma y be made a unit of CVP. Conservation -$1.0 billion for ecosystem protection and -Same as Perata, except: -Same as Version B, except: & Watershed restoration projects for 16 watersheds (does not - -Adds Mojave River watershed. Protection include Mojave River as the others do) -$150 million to protect reservoir watersheds - -$200 million for coastal watershed projects. -Adds $155 million to protect reservoir from wildfire impacts. - -$100 million to acquire water rights from watersheds from wildfire impacts. willing sellers for migratory birds on wildlife -Adds $300 million for improved fish passage refuges. -$85 million to fight invasive mussels, clams, -Same as Perata -Same as Perata and snails. Groundwater -$1.1 billion for water cleanup: -Same as Perata, except add: -Same as Perata Protection & - -$400 million to reduce contamination of 1 Water Quality groundwater used for drinking -$500 million for clean and safe drinking water - -$100 million for small community wastewater grants. treatment projects. -- Requires at least 50% cost share. - -$500 million for stormwater runoff mgmt. -- Matching fund waiver for disadvantaged (TMDL). communities and economically distressed areas. - -$100 million to Ocean Protection Council for areas of special biological significance (ASBS) - Requires recipients to repay grants if costs are -Same as Perata recovered from responsible parties. Water -$250 million for water recycling projects -Same as Perata -Same as Perata Recycling CA Water N/A -Sole purpose is to ensure accountability and N/A Infrastructure timely implementation of improvements in water Commission conveyance and statewide storage. (C WIC) - Commission is completely self - supporting/no impact on General Fund. - Commission ceases to exist when projects are complete. -7 member board: 5 gubernatorial appointees, (00053418.DOC. ) Confidential Pate 5 2/6/2008 { 00053418.DOC. } DWR Dir., and Resources Secretary. Legislature can confirm or reject appointees with a 213 vote. - Minimal staff, contracts or uses inter - agency agreements w/ DWR for several services. { 00053418.DOC. } Confidential Page 6 2/6/2008 Accountability -State Auditor annually conducts programmatic -Same as Perata, except add: -Same as Perata. Water Supply Reliability review of expenditures and reports to Governor $2.700 $3.100 Delta Sustainability and Legislature. -DWR and water infrastructure commission $2.400 Statewide Water System Operation Improvement $0.000 annually report to Legislature. $2.500 Conservation and Watershed Protection $1.085 -Water infrastructure commission pays for 1) $1.535 Groundwater Protection and Water Quality $1.100 annual independent financial audit that State $1.100 Water Recycling $0.250 Controller reviews and 2) annual performance $0.250 TOTAL $6.835 audit from State Auditor. $10.885 Environmental -Funds cannot be used to pay environmental -Same as Perata. -Same as Perata, except funds can be used to pay Mitigation mitigation of private parties or local agencies. for environmental mitigation costs of projects funded by this proposal. Salinity - Criteria #4 of delta program says program - Criteria #5 of delta program same as Perata -Same as Perata. Management should reduce the quantity of bromide, total organic carbon, and total dissolved solids in the water pumped at state and federal water pumping facilities to improves the ability to manage salinity Method of -Funds subject to legislative appropriation. -Funds subject to legislative appropriation, -Funds appropriated only in the Budget Act of Appropriation except statewide storage money is continuously the first year of each Legislative Session appropriated to water infrastructure commission (CWIC) and conveyance improvements are paid for by agencies that benefit. Summary (00053418.DOC.) Perata CCRW Version C 12/17/07 Water Supply Reliability $2.000 $2.700 $3.100 Delta Sustainability $2.400 $2.400 $2.400 Statewide Water System Operation Improvement $0.000 $3.500 $2.500 Conservation and Watershed Protection $1.085 $1.240 $1.535 Groundwater Protection and Water Quality $1.100 $1.600 $1.100 Water Recycling $0.250 $0.250 $0.250 TOTAL $6.835 $11.690 $10.885 (00053418.DOC.) YEAR -TO -DATE REPORT YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES FISCAL YEAR 2007 -2008 MILLS SUMMERFIELD YEAR -TO -DATE REPORT FROM 10- 01.2007 TO 12.31.2007 TOTAL ARMSTRONG BEVERAGE REGULAR MEETINGS ATTENDED 11 13 COMMITTEE MEETINGS ATTENDED 15 24 OFF SITE MEETINGS ATTENDED 0 1 TOTAL MEETINGS ATTENDED YTD 26 38 DIRECTOR FEES YTD $3,900 $5,700 MEETING FEES BUDGET YTD $5,950 $5,950 TRAVEL & CONFERENCES EXPENSES YTD $25 $0 TRAVEL & CONFERENCE BUDGET YTD $1,070 $1,070 DIRECTORS FEES & EXPENSES YTD $3,925 $5,700 FEES & EXPENSES BUDGET YTD $7,020 $7,020 GEN MGR EXPENSES YTD GEN MGR TRAVEL CONF. BUDGET YTD TOTAL FEES & EXPENSES YTD $3,925 $5,700 TOTAL FEES & EXPENSES BUDGET YTD $7,020 $7,020 COLETT MILLS SUMMERFIELD SUB -TOTAL PAYNE TOTAL 13 11 13 61 17 12 18 86 2 8 4 15 32 31 35 162 162 $4,800 $4,650 $5,250 $24,300 $24,300 $5,950 $5,950 $5,950 $29,750 $29,750 $0 $1,237 $0 $1,262 $1,262 $1,070 $1,070 $1,070 $5,350 $5.350 $4,800 $5,887 $5,250 $25,562 $25,562 $7,020 $7,020 $7,020 $35,100 $35.100 $3,868 $3,868 $3,724 53.724 $4,800 $5,887 $5,250 $25,562 $3,868 $29,430 $7,020 $7,020 $7,020 $35,100 $3.724 $38.824 m z 0 Quarter -To -Date Report YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES FISCAL YEAR 2007 -2008 2ND QUARTER REPORT FROM 10 -01 -2007 TO 12 -31 -2007 ARMSTRONG BEVERAGE COLLETT MILLS SUMMERFIELD SUB -TOTAL PAYNE TOTAL REGULAR MEETINGS ATTENDED 6 7 8 6 7 34 COMMITTEE MEETINGS ATTENDED 7 15 10 6 11 49 OFF SITE MEETINGS ATTENDED 0 0 1 6 3 10 SPECIAL MEETINGS ATTENDED 0 TOTAL MEETINGS ATTENDED QTD 13 22 19 18 21 93 93 DIRECTOR FEES QTD $1,950 $3,300 $2,850 $2,700 $3,150 $13,950 $13,950 MEETING FEES BUDGET QTD $2,975 $2,975 $2,975 $2,975 $2,975 $14,875 $14,875 TRAVEL & CONFERENCES EXPENSES, $25 $0 $0 $1,237 $0 $1,262 $1,262 TRAVEL & CONFERENCES BUDGET QT $535 $535 $535 $535 $535 $2,675 $2,675 DIRYEES AND EXPENSES QTD $1,975 $3,300 $2,850 $3,937 $3,150 $15,212 $15,212 FEES AND EXPENSES BUDGET QTD $3,510 $3,510 $3,510 $3,510 $3,510 $17,550 $17,550 GEN MGR EXPENSES QTD $25 $25 GEN MGR TRAVEL /CONF. BUDGET QTD $1,862 $1,862 TOTAL FEES & EXPENSES QTD $1,975 $3,300 $2,850 $3,937 $3,150 $15,212 $25 $15,237 TOTAL FEES & EXPENSES BUDGET QT $3,510 $3,510 $3,510 $3,510 $3,510 $17,550 $1,862 $19,412 DIRECTORS RECAP OF TRAVEL /CONFERENCE EXPENSES October - December 2007 GL Trip Trip Trip Reimbursable expenses paid by YLWD Director date date name location Meals Lodging Travel Conf Fee Misc Total trip Total Armstrong 12/3/07 10/25/07 YL State of City- CoC YL $25 $25 $0 $25 Beverage $0 $0 $0 Collett $0 $0 Mills 12/3/07 10/25/07 YL State of City- CoC YL $25 $25 11/30/07 11/26/07 ACWA Fall Conference Indian Wells $551 $101 $560 $1,212 $0 $1,237 Summerfield $0 $0 $0 Total directors $50 $551 $101 $560 $0 $1,262 $1,262 General Manager Payne 12/3/07 10/25/07 YL State of City- CoC YL $25 $25 $0 $0 $0 $0 $25 Total GM $25 $0 $0 $0 $0 $25 $25 Total directors & GM $75 $551 $101 $560 $0 $1,287 $1,287 Assistant General Manager Vecchiarelli 0 0