1

In light of Governor Brown’s decision to end the drought state of emergency in April, California’s investor-owned water companies (IOWCs) are working closely with their customers to implement the governor’s permanent framework of making water conservation a California way of life. This was evident in May when IOWCs throughout the state hosted Water Awareness Month events that inspired customers to continue using water wisely. And conservation was top of mind at the California Water Association’s (CWA) Spring Conference where speakers and panelists shared ideas on “Delivering Solutions Amid Uncertainty.”With the past droughts as a backdrop, the Public Policy Institute of California issued a report earlier this month outlining some of the lessons learned to help local water utilities and the state prepare for future droughts. June’s edition of On Tap includes the following articles highlighting CWA members’ continuous efforts to provide their customers with safe, reliable and high-quality water:• “Delivering Solutions Amid Uncertainty” at CWA’s Spring Conference• CWA Members Commemorate Water Awareness Month• California American Water Announces Plans to Acquire Fruitridge

Vista Water Company • New Executive Team Members at San Jose Water Company and

California American Water• PPIC Issues Report: Building Drought Resilience in California’s

Cities and Suburbs• Gere Presents at American Water Works Association Annual

ConferenceTo view On Tap in PDF format, click here, or access the online version on CWA’s website at www.calwaterassn.com.

Sincerely,

Lawrence M. MoralesEast Pasadena Water Company2017-2018 CWA President

MESSAGE FROM THE PRESIDENTCALIFORNIA WATER ASSOCIATIONWorking Together. Achieving Results.www.calwaterassn.com

QUESTIONS? Contact the CWA office at:700 R Street, Suite 200Sacramento, CA 9511Phone: 916.231.2147E-mail: jhawks@calwaterassn.com mdixon@calwaterassn.com

IN THIS ISSUE:

• “Delivering Solutions Amid Uncertainty” at CWA’s Spring Conference ............................2

• CWA Members Commemorate Water Awareness Month .......6

• California American Water Announces Plans to Acquire Fruitridge Vista Water Company ..............................8

• New Executive Team Members at San Jose Water Company and California American Water .....9

• PPIC Issues Report: Building Drought Resilience in California’s Cities and Suburbs ..............11

• Gere Presents at American Water Works Association Annual Conference ..........................12

For Instant CWA News:

CaliforniaWaterAssociation

on

HEADLINE SPACE HEADLINE SPACE

HEADLINE SPACE HEADLINE SPACE

CaliforniaWaterAssociation

#F7931E #F7931E

#0071BC

#FFCF01

#9AD7DB

#2E3192

JUNE 2017

2

SPR

ING

CO

NFE

REN

CE

“DELIVERING SOLUTIONS AMID UNCERTAINTY” AT CWA’S SPRING CONFERENCE

SPRING CONFERENCE

Delivering Solutions Amid Uncertainty” was the theme of California Water Association’s (CWA) 2017 Spring Conference in Sacramento on

May 18. CWA 2nd Vice President and Program Chair Evan Jacobs, External Relations Manager, California American Water, cited the conference as being more optimistic with California’s second wettest winter on record quickly transforming drought management to flood and water supply management. Jacobs shared the intent behind the chosen theme, which was to capture the efforts being made to minimize the consequences of the next drought. CWA President Lawrence Morales, President, East Pasadena Water, introduced Assembly Member Blanca Rubio, Chair of the Assembly Human Services Committee, who launched her keynote address with the infamous quote, “Whiskey is for drinking; water is for fighting.” Noting that she was the youngest person ever elected to the Valley County Water District, Rubio expressed her enthusiasm about authoring four pending water bills dealing with water use efficiency regulations, future drought management, lead testing in schools and recycled water. “You can count me as a true partner,” said Rubio as she emphasized the need for CWA members to engage in the legislative process. She concluded, “California will be better for it. And you will be better for it.”Jacobs moderated the first panel on “2017 Water Year: Oasis or Mirage?” Panelists included Ellen Hanak, Director, Water Policy Center and Senior Fellow, Public Policy Institute of California (PPIC), and Gary Bardini, Deputy Director, Integrated Water, Management, California Department of Water Resources (DWR).

Hanak outlined lessons learned from the drought, including the ongoing need to address safe drinking water solutions for rural residents, protect aquatic ecosystems, manage groundwater and continue building urban drought resilience. The PPIC’s California Drought Report Card graded urban/city dwellers’ drought response an A-, agriculture/farming sector’s a B, the

CONTINUED ON NEXT PAGE

“

CWA’s Spring Conference

Evan Jacobs Lawrence Morales

Assembly Member Blanca Rubio

Ellen Hanak

3

SPR

ING

CO

NFE

REN

CE

“DELIVERING SOLUTIONS AMID UNCERTAINTY” AT CWA’S SPRING CONFERENCE...CONTINUED

SPRING CONFERENCE

state’s response to drought effects on disadvantaged rural communities’ drinking water a C- and the state’s response to drought effects on the environment and aquatic ecosystems a D.Bardini, whose presentation was titled “Managing California’s Water Resources Sustainably for Future Generations,” noted that managing water resources is getting more complex due to the differing opinions of individuals in the water management community. Bardini reviewed the 10 priority actions from the California Water Action Plan, starting with the top priority of “making conservation a California way of life.” He discussed DWR’s Strategic Business Plan, the Draft Water Available for Replenishment Report, State Water Project at a Glance and Sustainable Groundwater Management Act for which DWR is providing financial, planning and technical assistance.Bardini concluded his presentation with an overview of the state’s flood-management policy issues, including the Oroville Dam spillway crisis, and Governor Brown’s Four-Point Plan to Bolster Dam Safety and Flood Protection.

Wade Crowfoot, Chief Executive Officer, The Water Foundation, moderated the panel on “Delivering Solutions for Low-Income and Disadvantaged Communities.” He was joined by Martha Guzman Aceves, Commissioner, California Public Utilities Commission (CPUC); Max Gomberg, Water Conservation and Climate Change Manager, State Water Resources Control Board (SWRCB); Brad Coffey, Assistant Chief of Operations, Metropolitan Water District of Southern California; and Douglas Wallace, Environmental Affairs Officer, East Bay Municipal Utilities District. Crowfoot led a dual discussion on two facets of assistance for disadvantaged communities: (1) the need for financing infrastructure investment to remediate contaminated water sources and ensure a safe, reliable water supply; and (2) assisting customers whose income falls below a certain threshold.

CONTINUED ON NEXT PAGE

Gary Bardini

1.7 Million Cubic Yards of Debris Flowed into the Feather River from the Damaged Oroville Dam Spillway

4

SPR

ING

CO

NFE

REN

CE

“DELIVERING SOLUTIONS AMID UNCERTAINTY” AT CWA’S SPRING CONFERENCE...CONTINUED

SPRING CONFERENCE

Gomberg summarized SWRCB’s directive under Assembly Bill 401 (Dodd) to produce a report for the Legislature in early 2018 that outlines SWRCB’s recommendations on how a statewide low-income rate assistance (LIRA) program could be financed and implemented. He noted that one-third of the state’s households fall below 200 percent of the federal poverty line (FPL), which is roughly comparable to 80 percent of the median household income in California. He said SWRCB is exploring four program scenarios on LIRA, including eligibility and financing, and conducting a series of workshops throughout the state this summer to receive input from the public.Commissioner Guzman Aceves reported on the CPUC-regulated utilities’ current LIRA programs, the disparities that exist among the programs and the CPUC’s plans to initiate a rulemaking that will be designed to harmonize the existing programs and ensure the rulemaking is coordinated with the SWRCB’s activities. Both Wallace and Coffey described the current low-income/disadvantaged communities’ assistance programs their utilities have in place, noting the challenges for public water agencies to engage in such programs, given the constraints imposed by Proposition 218, which prevents government-owned water utilities from funding LIRA programs through ratepayer subsidies.

In his presentation on “Implementing Executive Order B-40-17: Water Conservation Regulations,” Erik Ekdahl, Director, Office of Research, Planning and Performance, SWRCB, provided a timeline of California’s drought, including the various conservation approaches and emergency regulations that have been instituted, culminating with the implementation of Governor Brown’s Executive Order B-37-16, Making Conservation a California Way of Life.Ekdahl discussed the impact of the statewide cumulative water savings, which resulted in Governor Brown’s April 7, 2017, Executive Order B-40-17 terminating the Drought State of Emergency for most California counties and establishing long-term conservation goals and improved drought planning to break the reactive drought-management cycle.During her luncheon presentation, Governor Brown’s Deputy Cabinet Secretary Kim Craig discussed the legislative strategy to implement the governor’s proposed policies on long-term water conservation and future drought management regulations. She emphasized the governor’s desire to work cooperatively with stakeholders and legislators on his budget “trailer” bill, which encompasses new legislation for both policy priorities, noting that the stakeholder working group she chairs and the Assembly Water Conservation Working Group, are serving as the consensus-building vehicles for the final legislation.

CONTINUED ON NEXT PAGE

Erik Ekdahl

(L-R) Max Gomberg, Wade Crowfoot, Martha Guzman Aceves, Douglas Wallace and Brad Coffey

Deputy Cabinet Secretary Kim Craig

5

SPR

ING

CO

NFE

REN

CE

“DELIVERING SOLUTIONS AMID UNCERTAINTY” AT CWA’S SPRING CONFERENCE...CONTINUED

SPRING CONFERENCE

During his presentation on, “Prioritization of Drinking Water Regulations for Calendar Year 2017,” Darrin Polhemus Deputy Director, SWRCB’s Division of Drinking Water, provided an update on the state’s drinking water programs and related regulations. He highlighted several regulatory priorities, including those for drinking water, surface water augmentation for direct potable reuse and recycled water and maximum contaminant levels for coliform, lead and copper and perchlorate.Following his update, Deputy Director Polhemus moderated a panel on “Delivering Water Quality Solutions.” He was joined by Dawn White, Water Quality Manager, Golden State Water Company, who is also CWA’s Water Quality Committee Chair; Sophie James, Director of Water Quality, California Water Service; Adam Ly, Water Quality Manager, Liberty Utilities; Tim Miller, Senior Director of Water Quality and Environmental Compliance, California American Water; Francois Rodigari, Director of Water Quality and Environmental Services, San Jose Water Company; and David Van, Water Quality Superintendent, San Gabriel Valley Water Company.

The panelists shared their progress with the school lead sampling program, implementation of Senate Bill 1398 relative to establishing an inventory and replacement schedule for lead water pipes and service lines, and compliance with current and proposed standards on coliform bacteria, hexavalent chromium and 1,2,3-trichloropropane. They also discussed the state’s Water Quality Enforcement Policy and the need for water utilities to have access to an efficient process

to comply with the California Environmental Quality Act.The conference concluded with “Delivering Legislative Solutions in the 2017 Session,” a panel moderated by Jennifer Capitolo, Senior Policy Advisor, Nossaman LLP. Panelists included Danielle Blacet, Director for Water, California Municipal Utilities Association; Kathleen Cole, Executive Legislative Representative, Metropolitan Water District of Southern California; and Wendy Ridderbusch, Director of State Relations, Association of California Water Agencies. The panel discussed a variety of bills moving through the 2017 legislative session, including cross-connection regulations, lead testing in schools, water-use efficiency and drought management.

(L-R) Danielle Blacet and Wendy Ridderbusch discuss their organizations’ top priorities during the water legislation panel at CWA’s Spring Conference

(L-R) David Van, Tim Miller and Darrin Polhemus

6

During California’s 1987-1992 drought, the California Department of Water

Resources, in conjunction with water agencies and associations, designated May as Water Awareness Month. In commemoration, water agencies throughout California conduct public outreach and educational events to encourage wise water use and conservation. This year, San Jose Water Company (SJWC) partnered with the San Jose Giants to host its 20th Annual Water Awareness Night at

Municipal Stadium, which drew almost 3,000 local water customers. The event included water conservation presentations and activities with interactive displays, games and giveaways provided by SJWC and the Giants."I think it's something our community looks forward to," said Juliana Paoli, Senior Vice President of Communications and Chief Marketing Officer for the Giants. "It's about our community and San Jose Water Company and how they care about the community, their customers and educating us on water issues."California Water Service (Cal Water) celebrated Water Awareness Month by hosting a festival in the Selma District at Lincoln Park Plaza where more than 200 customers participated in festivities and had the opportunity to meet with representatives from various Cal Water departments. They were joined by local elected officials, police and fire chiefs and other city employees. The festivities included face painting and performances by the Selma High School Folklorico Dancers.

THE

QU

ALI

TY &

SER

VIC

E CWA MEMBERS COMMEMORATE WATER AWARENESS MONTH

THE QUALITY & SERVICE FOCUS

(Photo Credit: Josh Jackson/MiLB.com)

(L-R) SJWC President and Chief Operating Officer Andrew Gere standing next to San Jose Giants General Manager Mark Wilson with SJWC Director of Customer Service Robert Day on the far right. Day has nurtured a partnership with the San Jose Giants for 20 seasons (Photo Credit: Josh Jackson/MiLB.com)

CONTINUED ON NEXT PAGE

(L-R) Cal Water Selma Local Manager Steve Johnson congratulating the customer who won the grand prize, a high-efficiency clothes washer.

(L-R) Mikal Kirchner, Selma City Parks; Steve Johnson, Cal Water Selma Local Manager; David Elias, Selma City Manager; Mike Cain, Selma City Fire Chief; and Greg Garner, Selma City Police Chief

7

“Every year we invite our local customers to learn more about their water system and get to know our Selma team, the people who work day in and day out to ensure our customers have reliable, high-quality water service,” said Cal Water’s Local Manager Steve Johnson. “This year, we also wanted to acknowledge our customers for their efforts during the drought emergency. Thanks to their efforts, we reduced water use collectively by almost 40 percent in Selma.”Cal Water also hosted a customer-appreciation event on June 4 at the Kern County Fairgrounds in Bakersfield to celebrate the water utility’s 90th year of service in the district. The event featured carnival games, prizes, giveaways, free food and a low-water-use plant demonstration. The Ballet Folklorico Huaztecalli performed traditional Mexican folk dances, and Centre Stage Dance Academy performed Irish step dances.

THE

QU

ALI

TY &

SER

VIC

E CWA MEMBERS COMMEMORATE WATER AWARENESS MONTH...CONTINUED

THE QUALITY & SERVICE FOCUS

(L) Susana Gonzales, Cal Water Customer Service Representative Cal Water Selma Customers Celebrating Water Awareness Month

(L-R) Mia Cifuentes Representing Assembly Member Vince Fong, and Pam Rose, Representing Senator Jean Fuller, Presented Certificates of Recognition to California Water Service

(L-R) Zane Smith, Executive Director, Boys and Girls Clubs of Kern County; Michael Mares, Cal Water District Manager, Bakersfield District; Emily Hernandez, Communications Specialist, Cal Water

(L-R) Cal Water Employees: Nathan Fuller, Operation Maintenance Worker; Wendy Fraser, Acting Customer Service Supervisor; and Gilbert Gonzales, Acting Certified Pump Operator

Cal Water’s Customer-Appreciation Event in Bakersfield

8

MEM

BER

SPO

TLIG

HT

CALIFORNIA AMERICAN WATER ANNOUNCES PLANS TO ACQUIRE FRUITRIDGE VISTA WATER COMPANY

MEMBER SPOTLIGHT

In April, California American Water (CAW) signed an agreement to acquire the assets of Fruitridge Vista Water

Company, a family-owned Class B water utility located in south Sacramento County. The acquisition will add approximately 4,800 new customers to CAW’s statewide customer base of almost 180,000 homes and businesses.In a media announcement, CAW's Director of Northern California Operations S. Audie Foster said, "We are pleased to have entered into a contract and look forward to serving customers in the Fruitridge area. Our Parkway water system is just south of Fruitridge Vista, so we know the area well. This acquisition will allow Fruitridge Vista customers to take advantage of our excellent conservation and customer service programs.” Robert C. Cook Jr., owner of Fruitridge Vista Water Company, noted, "The contract agreement is a step forward and secures long-term quality service for our customers." The $20.75 million acquisition is pending approval by the California Public Utilities Commission, which regulates the water utility.

9

MEM

BER

SPO

TLIG

HT

NEW EXECUTIVE TEAM MEMBERS AT SAN JOSE WATER COMPANY AND CALIFORNIA AMERICAN WATER

MEMBER SPOTLIGHT

San Jose Water Company (SJWC) recently promoted Palle Jensen from Senior Vice President of Regulatory Affairs to Executive Vice President, while John Tang has moved from Vice President of Government Relations and Corporate Communication

to Vice President of Regulatory Affairs and Government Relations. With Tang now assuming regulatory affairs responsibilities, the company has hired a new Director of Corporate Communications, Jayme Ackemann. At California American Water (CAW), Garry Hofer recently was promoted to Vice President of Operations from his previous position as CAW’s Director of Southern California Operations, replacing previous Vice President Rich Svindland, who is now CAW’s President.

As SJWC’s new Executive Vice President, Jensen will oversee Regulatory Affairs, Government Relations, Corporate Communications, Customer Service, Customer Information Systems and the Utility Supplier Diversity program. With more than 25 years of experience navigating the regulatory environment with the California Public Utilities Commission, Jensen joined SJWC in 1995 as a Regulatory Specialist.In his new role as SJWC’s Vice President of Regulatory Affairs and Government Relations, Tang will be responsible for establishing regulatory policies, developing and executing

rate filings and testimony and preparing financial and regulatory analyses to determine revenue requirements and rate structures. As a Registered Civil Engineer with 16 years of associated experience, he joined SJWC in June 2004 as an Assistant Engineer. Tang has demonstrated leadership, resourcefulness and organizational skills in conducting key strategic and operational initiatives. He is held in high regard by community leaders and state and locally elected officials with whom he interacts on behalf of SJWC.

Reporting to Tang, Jayme Ackemann will assist in planning and executing programs in all areas of public information, media relations, customer relations, corporate communications and community relations. Ackermann comes to SJWC with a bachelor’s degree in Communications and Broadcast Journalism and more than 14 years of experience as a communications director/manager in local government and private organizations.At CAW, Hofer will oversee operations for Water and Wastewater Treatment, Transmission and Distribution, Field Services, SCADA, Water Quality and Environmental Compliance, Customer Advocacy and Metering. He has worked with wholesale and retail water

agencies, as well as public and investor-owned companies, during more than 32 years of serving in the water industry. In his previous position with CAW, Hofer was Director of Southern California Operations. He also served as CAW’s Operations Manager for the Los Angeles District and External Affairs Manager for the Southern Division. Before joining CAW in 2008, Hofer managed public affairs, media relations and corporate communications for the Southwest Water Company Utility Group and the Metropolitan Water District of

CONTINUED ON NEXT PAGE

Palle Jensen

John Tang

Jayme Ackemann

10

MEM

BER

SPO

TLIG

HT

NEW EXECUTIVE TEAM MEMBERS AT SAN JOSE WATER COMPANY AND CALIFORNIA AMERICAN WATER...CONTINUED

MEMBER SPOTLIGHT

Southern California. He serves on the boards of the Raymond Basin, San Gabriel River Committee and Main San Gabriel Watermaster and holds Level II certifications in both Water Treatment and Distribution. Replacing Hofer as Director of Southern California Operations is Christopher Mattis. Mattis will oversee all facets of operations for CAW’s Los Angeles, San Diego and Ventura County water systems, which serve a total of 180,000 residents with 70,000 service connections. Since beginning his career at CAW in 1981, Mattis has held various positions within the company’s San Diego County District. He earned an associate degree in Business Administration from Southwest College and an associate degree in Water Technology from Palomar College. Mattis is a member of the California-Nevada American Water Works Association and holds a Level V certification in Water Distribution, a Level II certification in Water Treatment and a Level I certification in Cross-Connection Control.

(L-R) Chris Mattis and Garry Hofer

11

POIN

TS O

F IN

TER

EST

PPIC ISSUES REPORT: BUILDING DROUGHT RESILIENCE IN CALIFORNIA’S CITIES AND SUBURBS

POINTS OF INTEREST

With the recurrence of droughts and the recent protracted drought in California, the Public Policy Institute of California

(PPIC) issued a report in June titled Building Drought Resilience in California’s Cities and Suburbs (Report). The Report, supported with funding from California Water Service (Cal Water), the S.D. Bechtel, Jr. Foundation, and the U.S. Environmental Protection Agency, took a comprehensive look at the response of California’s cities and suburbs to recent

droughts and the state’s evolving role in urban drought management.After the droughts of 1976-77 and 1987-92, water utilities made considerable investments to prepare for continued drought resilience, including diversifying supplies, creating connections with neighboring suppliers and engaging in recycled wastewater and water transfer agreements. In light of this, water utilities generally believed they were prepared for the 2012 drought.Throughout the drought years, the state played a significant role in strengthening local water planning requirements and providing financial assistance while facilitating voluntary water trading to help areas in dire need. However, with the 2012 drought, the state took a stronger role in managing short-term water demands, which typically had been the responsibility of local authorities, and in 2015, implemented a statewide policy mandating water conservation. Based on numerous information sources on the impact of drought on urban communities and the actions taken by state and local authorities to mitigate that impact, the Report sheds light on some lessons learned for planning and managing future droughts. The Report emphasizes the importance of state and local water suppliers “aligning policies and expectations regarding each other’s roles and responsibilities.” According to the Report, the key lessons learned from the drought relative to urban drought planning and response are largely due to understanding how the state and local water suppliers can best work together in five key areas, including:

• Coordinating water shortage contingency planning and implementation • Fostering water system flexibility and integration • Improving water suppliers’ fiscal resilience • Addressing water shortages in vulnerable communities and ecosystems • Balancing long-term water-use efficiency and drought resilience

To support the examination, Cal Water provided data and insight into its approach to managing the recent historic drought. Specifically, Cal Water gave the research team detailed information on water use by its customers in all 24 of its operating districts (which serve nearly 2 million Californians and stretch from Chico in northern California to Ranchos Palos Verdes in southern California), with a comparative analysis covering different customer classes, including single-family households, during both the voluntary conservation and mandatory reduction phases of the statewide effort to reduce water use.Ken Jenkins, Cal Water Director of Drought Management and Conservation, noted in a press release, "Cal Water customers did a remarkable job conserving water during the recent, historic drought, and it's imperative that we retain the excellent habits our customers and other Californians developed. At the same time, PPIC's report identifies additional measures that should be considered to ensure we are prepared for future droughts."

12

POIN

TS O

F IN

TER

EST

GERE PRESENTS AT AMERICAN WATER WORKS ASSOCIATION ANNUAL CONFERENCE

POINTS OF INTEREST

At the American Water Works Association Annual Conference and Exposition (ACE 17) in Philadelphia,

PA on June 12, Andrew Gere, President and Chief Operating Officer, San Jose Water Company (SJWC), and Karen Pappas, Water Treatment Project Manager, HDR Engineering Inc., collaborated on a joint project infrastructure and asset management presentation featuring SJWC’s Montevina Water Treatment Plant. Titled “Progressive Design-Build Supports Collaboration and Innovation to Provide Best Value,” the presentation focused on the numerous innovative features incorporated by SJWC and HDR Engineering in the modernization of the Montevina Plant.

SAVE THE DATE

California Water Association’s76th Annual Conference

November 6-7, 2017Monterey Plaza Hotel

Andrew Gere Joined by Karen Pappas at ACE 17