WALNUT VALLEY WATER DISTRICT...Yesenia Garduno began her career with the District on March 13, 2018....

WALNUT VALLEY WATER DISTRICT 271 South Brea Canyon Road

Walnut, California 91789

REGULAR BOARD MEETING MONDAY, OCTOBER 15, 2018, 5:00 P.M.

AGENDA

NOTE: To comply with the Americans with Disabilities Act, if you need special assistance to participate in any Board meeting, please contact the General Manager’s office at least 4 hours prior to a Board meeting to inform the District of your needs and to determine if accommodation is feasible.

Each item on the agenda shall be deemed to include any appropriate motion, resolution, or ordinance, to take action on any item.

Materials related to an item on this agenda submitted after distribution of the agenda packet are available for public review during regular business hours at the District office, located at: 271 S. Brea Canyon Road, Walnut, California.

1. Flag Salute

2. Roll Call: Mr. Ebenkamp_____ Mr. Hilden_____ Ms. Kwong_____ Ms. Lee _____ Dr. Wu_____

3. Public Comment President EbenkampThe Presiding Officer of the Board of Directors may impose reasonable limitations on publiccomments to assure an orderly and timely meeting.

A. Agenda Items - Any person desiring to address the Board of Directors on any Agenda itemmay do so at the time the item is considered on the Agenda by requesting the privilege ofdoing so at this time and stating the Agenda item to be addressed. At the time the item isdiscussed, those requesting to speak will be called to do so.

B. Non-Agenda Items - At this time, the public shall have an opportunity to comment on anynon-agenda item relevant to the jurisdiction of the District. Reasonable time limits on eachtopic and on each speaker are imposed in accordance with Board policy.

4. Additions to Agenda President Ebenkamp A. Discussion B. Action Taken

5. Reorder of Agenda President Ebenkamp A. Discussion B. Action Taken

6. Special PresentationsA. High Efficiency Toilet Program – Recognition of High School ParticipationB. Introduction of Ms. Yesenia Garduno, Customer Service Representative I, on the Occasion

of Completing the Probationary Period for New Employees

7. Presentation by Mr. Nick Franceschine, F.S.A., North Bay Pensions, LLCA. OPEB – GASB 75 Valuation of Retiree Health Benefits Report as of July 31, 2018

(1) Discussion (2) Action Taken

8. Consider Approval of Consent Calendar (Items 1-5)A. Discussion B. Action Taken

(1) Minutes of the Regular Board Meeting held September 17, 2018(2) Minutes of the Special Board Meeting held September 20, 2018(3) Check Register(4) Employee Expense Reimbursement Report(5) Community Outreach Update

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Agenda -2- October 15, 2018

9. Consider Approval of Director Expense ReportsProvided are Expense Reports disclosing per diem requests for Director meeting attendance andan itemization of expenses incurred by the District on behalf of each Director.A. Discussion B. Action Taken

10. Treasurer’s Report Mr. Teuber A. District Statement of Revenues, Expenses, and Change in Net Assets as of September 30,

2018B. District Statement of Net Assets as of September 30, 2018C. Summary of Cash and Investments as of September 30, 2018

(1) Discussion (2) Action Taken

COMMITTEE REPORTS

Standing Committee Reports (The Chair of each committee that has met will report to the full Board)

11. Engineering and Special Projects Director Lee A. Consider Award of Contracts for the Water Distribution System for Industry Business

Center – West (P.N. 14-3373) – Labor and Material Bids(1) Discussion (2) Action Taken

B. Acceptance of Work and Notice of Completion for Major Contracts: Water Distribution Systemfor Tract 49059 (P.N. 16-3430), and Oakleaf Canyon Reservoirs Coating (P.N. 17-3501)(1) Discussion (2) Action Taken

C. Authorization to Execute the Los Angeles County Water Agency Mutual Assistance Agreement(1) Discussion (2) Action Taken

D. Authorize the General Manager to Execute the 2017 Proposition 1 Sustainable GroundwaterPlanning Grant(1) Discussion (2) Action Taken

E. Receive and File the Puente Basin Watermaster Annual Report for Fiscal Year 2017-18(1) Discussion (2) Action Taken

F. Operations Report

12. Personnel Committee Director Hilden A. Annual Review and Consideration of Revisions of Board Policies for Ethical Conduct Regarding

Board of Directors Compensation and Expenses and Exhibits A, C, and F(1) Discussion (2) Action Taken

B. Standing Committee Meeting Process Review(1) Discussion (2) Action Taken

13. Finance Committee Director Wu A. Fund Status of Facilities Use Charges

(1) Discussion (2) Action TakenB. Consideration of Wholesale Potable Water Rate Adjustment

(1) Discussion (2) Action TakenC. Unclaimed Funds Policy

(1) Discussion (2) Action TakenD. Receive, Approve, and File Investment Transactions Report for Month Ending September 30,

2018(1) Discussion (2) Action Taken

E. Review of Revenue Bond Funds Held in Trust

14. Public Information/Community Relations/Legislative Action Committee Director Wu A. Consideration of Resolution or Award – Retirement of Mr. Richard Hansen, General Manager of

Three Valleys Municipal Water District(1) Discussion (2) Action Taken

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Agenda -3- October 15, 2018

OTHER ITEMS

15. TVMWD/MWD Director Hilden A. TVMWD ‘Action Line’ Report for Meetings held September 19, 2018B. Other Items

16. P-W-R Joint Water Line Commission Mr. Hitchman A. P-W-R JWL Report for Water Purchases for the Month of September 2018B. Other Items

17. Puente Basin Water Agency (PBWA) Director Lee

18. General Manager’s Report Mr. Hitchman A. Follow-up Regarding Prior Board ActionsB. District Activities Calendars for November and December 2018, and January 2019C. Other Items

19. Water Supply and Conservation Mr. Hitchman A. District Water Supply and Conservation UpdateB. Statewide Water Supply Conditions

20. Directors’ Oral Reports All Directors

21. Legal Reports Report on matters of interest or having an effect on the District

Mr. Ciampa

22. Board members and staff will be given an opportunity to request and suggest subjects for discussionat a future meeting.

23. Board of Directors Business President Ebenkamp A. Adoption of Resolution 10-18-655 Ordering Election Not Be Held for Walnut Valley

Water District for Divisions 2 and 3(1) Discussion (2) Action Taken

24. Public Comment on Closed Session

25. Adjourn to Closed Session

26. Closed SessionA. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [§54956.9(d)(4)]

Initiation of Litigation – Three Potential Cases

27. Reconvene in Open SessionA. Report of Action, if any, Taken in Closed Session

Adjournment

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WVWD – Staff Report

TO: Board of Directors FROM: General Manager DATE: October 15, 2018 SUBJECT: High Efficiency Toilet Program – Recognition of High School Participation

Action/Discussion Fiscal Impact Resolution Information Only

Recommendation

For information only.

Background

With assistance from students and teachers from three local high schools, the District conducted its High Efficiency Toilet (HET) Distribution Program on March 3, 2018, for interested District customers. Following the distribution of the HETs, the District was also assisted by the high schools on March 17, 2018, when the customers who received new toilets returned their old toilets for recycling.

This successful program resulted in the replacement of 135 high-water use toilets.

Representatives from the participating high schools, Diamond Bar, Rowland, and Walnut, have been invited to attend the October Board meeting to receive individual checks in the amount of $675 for their assistance in contributing to the success of this program. As in the past, local high school students assisted with paperwork, loading, unloading, and other vital logistics during the toilet distribution and return events.

Local high schools have assisted with more than 9,715 high-volume toilets since the inception of the program in 1997 resulting in an estimated annual savings of more than 60 million gallons of water!

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YESENIA GARDUNO

CUSTOMER SERVICE REPRESENTATIVE I

Yesenia Garduno began her career with the District on March 13, 2018.

Prior to accepting a position with the District, Yesenia worked for the Altura Credit Union

as a Senior Member Service Representative. She is a graduate of Norte Vista High School In

Riverside. Yesenia reached one of her short-term career goals when she came to work for the

District, as she stated that she hoped to work for a “great company”. She hopes to continue her

career growth here.

While not at work, Yesenia and her husband Matthew like to spend their free time

vacationing and going riding, even if only for quick weekend getaways.

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TO: Board of Directors FROM: General Manager SUBMITTED BY: Assistant General Manager DATE: October 15, 2018 SUBJECT: OPEB - GASB 75 Valuation of Retiree Health Benefits Report as of July 31,

2018


Recommendation

That the Board of Directors receive, approve and file the OPEB - GASB 75 Valuation of Retiree Health Benefits Report as of July 1, 2018.

Background

On June 2, 2015, The Governmental Accounting Standards Board (GASB) approved GASB Statement 75 (GASB 75) accounting standards for “Other Post-employment Benefits” (OPEB), which superseded GASB 45. GASB 45 required public entities to calculate and record the expense and liability of their OPEB benefits based on actuarially determined amounts and recorded on an amortized basis over multiple years. With the implementation of GASB 75, the District was required to record and recognize the full liability associated with the OPEB benefits, rather than amortizing the expense and liability as was done previously. Under the new standard, the District is also required to have an actuarial valuation completed every two years, rather than 3 years. To fulfill this requirement the District engaged the services of North Bay Pensions to perform a valuation as of July 1, 2018. Attached for your review is the actuarial report, which will be discussed in detail by Mr. Nick Franceschine, a representative from North Bay Pensions, at the October 15 Board meeting. In addition, although the GASB standard requires the recording of the liability, it does not require that the District fund the liability. Recognizing the importance of funding this liability the District established an OPEB trust as part of its funding strategy to reduce the associated liability. Attached is the funding status of the District’s OPEB liability.

Attachments: As noted

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WALNUT VALLEY WATER DISTRICT

VALUATION OF RETIREE HEALTH BENEFITS

REPORT OF GASB 75 ACTUARIAL VALUATION AS OF JULY 1, 2018

Prepared by: North Bay Pensions LLC October 3, 2018

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Contents of This Report

Actuarial Certification 1

Summary of Results 2

Detailed Exhibits

Exhibit 1 Actuarial Values as of July 1, 2018 6

Exhibit 2 Net OPEB Liability 7

Exhibit 3 Sensitivity of the Net OPEB Liability 8

Exhibit 4 OPEB Expense for the Fiscal Year Ending 6-30-2019 9

Exhibit 5 Deferred Outflows and Inflows of Resources 10

Exhibit 6 Schedule of Changes in the Net OPEB Liability 12

Exhibit 7 Ten-Year Projection of Costs 13

Exhibit 8 Summary of Benefit Provisions 13

Exhibit 9 Summary of Actuarial Assumptions 14

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Summary of Results

Background

The District maintains a program which pays part or all of monthly medical insurance premiums on behalf of retired former employees, provided that the employee has satisfied certain requirements. As of June 30, 2018, the District has accumulated $9,414,885 in an irrevocable trust with PARS (Public Agency Retirement Services) toward the cost of future benefits.

In June 2015, the Governmental Accounting Standards Board (GASB) released Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions”. This statement, often referred to as GASB 75, requires governmental entities to (1) record annual expense for their OPEB and (2) disclose certain information in their year-end financial statements.

The District has requested this actuarial valuation to determine what its OPEB obligations under the program are, and what the fiscal impact of GASB 75 will be for the 2018-2019 fiscal year. This report also includes GASB 75 results that were accrued and disclosed by the District during the 2017-2018 year.

Actuarial Present Value of Projected Benefit Payments

The Actuarial Present Value of Projected Benefit Payments (APVPBP) for all current and former employees, as of July 1, 2018, is $17,179,754. This is the amount the District would theoretically need to set aside at this time to fully fund all those future benefits.

The total value of $17,179,754 is the sum of these amounts:

Future benefits of current employees $ 8,172,819 Future benefits of current retirees 9,006,935 APVPBP $ 17,179,754

This figure may be compared to the Actuarial Present Value of Total Projected Benefits (APVTPB, the GASB 45 term for the same quantity) of $15,152,885 that was shown in the 2016 valuation report. We would have expected the APVTPB to increase to approximately $16,000,000 by 2018, as employees continue working and grow closer to retirement. The difference between the 2016 figure of $15,152,885 and this year’s figure of $17,179,754 is due to these reasons:

• Expected increase in the APVPBP since 2016 $ 847,191 • Change in the discount rate 603,529 • Miscellaneous experience gains and losses 576,149

$ 2,026,869

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The experience loss of $576,149 is partly from normal demographic effects (i.e., deaths, terminations, and retirements different than expected), and partly from medical premiums in 2018 that are different than anticipated. The change in the discount rate is discussed below, under “Actuarial Assumptions”.

These figures are computed by (1) estimating the OPEB benefits that will be paid to each current and former employee and their beneficiaries (if applicable), upon the employee’s retirement from the District, (2) estimating the likelihood that each payment will be made, taking into consideration the likelihood of remaining employed until retirement age and the likelihood of survival after retirement, and (3) discounting each expected future payment back to the present date at an assumed rate of investment return.

Subsidized Premiums

The accounting standards require that actuarial valuations dated after March 2015 must incorporate “age-specific” claims costs, which recognize that the true cost of health care increases with age. This is a significant change from prior practice, in which we only valued health care premiums.

The theory behind the requirement is the well-known fact that the actual cost of health care increases as people get older. Insurance companies know this, of course. When an insurance company (like Kaiser or Anthem Blue Cross) calculates a single monthly premium which applies to all employees, that single amount is a blended figure which combines the lower cost of health care for younger workers and the higher cost of health care for older workers. In a certain sense, the younger employees are subsidizing the cost of health care for the older employees.

GASB 75 requires us to use these age-specific rates when we evaluate the cost of an employer’s post-retirement health care plan. Another way of saying the same thing is that we will need to include the value of subsidized premiums in our GASB 75 computations. The value of subsidized premiums as of July 1, 2018 is approximately $1,604,000:

Value of promised benefits to retired employees $ 15,536,413 Value of future subsidized premiums 1,643,341 Total value of all GASB 75 benefits $ 17,179,754

The value of subsidized premiums is distributed among the different employee groups as follows:

Group A $ 383,994 Groups B/C, Employees 719,943 Groups B/C, Spouses 496,584 Group D 42,820

$ 1,643,341

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Although the accounting rules require us to include the value of subsidized premiums in the GASB 75 calculations, we must keep in mind that these are not a cash obligation of the District. The District is already funding these “subsidized premiums” through the medical premiums being paid for currently-working employees, so no additional cash funding is needed or required.

One consequence of including the value of the subsidized premiums in your GASB 75 operating expense is that there is a potential for double-counting the amount of the subsidized premiums. In other words, unless you make an adjustment, you will be accruing the amount of those subsidized premiums twice in each fiscal year: once for your active employees, in the medical premiums you are paying, and again in the GASB 75 expense. Fortunately, the accounting rules permit you to make a simple adjustment to the medical premium costs you accrue for your employees. As shown in Exhibit 7, for the 2018-19 year you may reduce your accrual of medical premiums by $102,000.

Net OPEB Liability

The Total OPEB Liability (TOL) is the portion of the APVPBP which has been “earned” by employees based on past years of service (i.e. benefits allocated to past years of service).

The Plan Fiduciary Net Position (FNP) is equal to the value of assets that have been accumulated in an irrevocable trust for these benefits.

The Net OPEB Liability or Asset (NOL) is the excess of the Total OPEB Liability over the Plan Fiduciary Net Position. At the end of each fiscal year, beginning June 30 2018, the District must show a liability equal to the NOL.

At June 30, 2017 and June 30, 2018, these amounts are:

June 30, 2017 June 30, 2018

Present value of benefits for employees $ 7,329,606 $ 6,633,321 Present value of benefits for retirees 7,039,091 9,006,935 Total OPEB Liability $ 14,368,697 $ 15,640,256

Accumulated assets in the PARS trust $ 7,824,063 $ 9,414,885 Plan Fiduciary Net Position $ 7,824,063 $ 9,414,885

Total OPEB Liability $ 14,368,697 $ 15,640,256 Plan Fiduciary Net Position (7,824,063) (9,414,885) Net OPEB Liability $ 6,544,634 $ 6,225,371

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OPEB Expense under GASB 75

GASB 75 requires that the annual change in the NOL be recognized as OPEB expense, except for certain specific changes which are to be recognized over different periods of time. Changes in actuarial assumptions, and experience gains and losses, are to be recognized over the average of the expected remaining service lives of all employees. As of June 30, 2017, this average for District employees is 11.1 years. As of June 30, 2018, this average is 11.4 years. Differences between actual and expected investment earnings are to be recognized over 5 years. The unrecognized remaining amounts of assumption changes, experience gains/losses and investment earnings differences are called “deferred outflows and inflows of resources relating to OPEB” (see Exhibit 5).

The OPEB Expense for the fiscal year ending June 30, 2018 is $639,934. For the year ending June 30, 2019, the OPEB Expense is $633,079. Derivations of these amounts are shown in Exhibit 4.

Disclosure Information as of June 30, 2018 and June 30, 2019

Amounts to be disclosed in the footnotes to the District’s audited financial statements as of June 30, 2018 and as of June 30, 2019 are shown in Exhibits 2 through 6 of this report. Numbers labelled as “June 30, 2017” are to be disclosed at June 30, 2018. Numbers labelled as “June 30, 2018” are to be disclosed at June 30, 2019.

Exhibit 7 shows estimated retiree benefits and OPEB expense for the next nine years after that.

Actuarial Assumptions

All actuarial assumptions are unchanged from the July 1, 2016 valuation, except for the discount rate, and are described in detail in Exhibit 9.

The expected long-term rate of investment return has been reduced from 6.48% to 6.25%, reflecting recent changes in the expected returns of the underlying investment classes. The assumed discount rate has been changed from 6.48% to 6.25%, effective June 30 2018, as a consequence.

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Exhibit 1 - Actuarial Values as of July 1, 2018

The Actuarial Present Value of Projected Benefit Payments (APVPBP) as of July 1, 2018 of all future employer-paid benefits from the program, for all current and former employees, is as follows:

Group A Groups B/C Employees

Groups B/C Spouses Group D Total

Current Employees $ 862,788 $ 4,569,596 $ 2,409,933 $ 330,502 $ 8,172,819 Retired Employees 6,206,127 1,784,280 1,016,528 0 9,006,935

$ 7,068,915 $ 6,353,876 $ 3,426,461 $ 330,502 $ 17,179,754

As of July 1, 2018, the District has accumulated $9,414,885 in an irrevocable trust toward this liability.

The Total OPEB Liability (TOL) is the portion of the APVPBP which has been “earned” to date by current and former employees, based on the years of service already completed. The values as of July 1, 2018 are:

Group A Groups B/C Employees

Groups B/C Spouses Group D Total

Current Employees $ 854,832 $ 3,746,832 $ 2,009,687 $ 21,970 $ 6,633,321

Retired Employees 6,206,127 1,784,280 1,016,528 0 9,006,935

$ 7,060,959 $ 5,531,112 $ 3,026,215 $ 21,970 $ 15,640,256

Summary of Participating Employees as of July 1, 2018

Active Employees

Number 54 employees Average Age 42.9 years Average Service 12.5 years

Retired Former Employees and Surviving Spouses

Number 40 persons Average Age 70.6 years

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Exhibit 2 - Net OPEB Liability

The Net OPEB Liability (NOL) is the excess of the Total OPEB Liability (TOL) over the Plan Fiduciary Net Position (FNP). As of June 30, 2016, June 30, 2017 and June 30, 2018 these are:

June 30, 2016 June 30, 2017 June 30, 2018 Total OPEB Liability

Value of benefits for employees $ 6,694,956 $ 7,329,606 $ 6,633,321 Value of benefits for retirees 7,109,350 7,039,091 9,006,935

Total OPEB Liability $ 13,804,306 $ 14,368,697 $ 15,640,256

Plan Fiduciary Net Position

Fair value of assets in PARS $ 6,050,105 $ 7,824,063 $ 9,414,885

Plan Fiduciary Net Position $ 6,050,105 $ 7,824,063 $ 9,414,885

Net OPEB Liability $ 7,754,201 $ 6,544,634 $ 6,225,371

The Net OPEB Liability has changed from June 30, 2016 to June 30, 2017 in this way:

TOL FNP NOL

Values at June 30, 2016 $ 13,804,306 $ 6,050,105 $ 7,754,201

Service cost 200,817 200,817 Interest 877,856 877,856 Differences between actual and expected experience 0 0 Employer contributions 1,662,734 (1,662,734) Net investment income 625,506 (625,506) Benefits paid to retirees (514,282) (514,282) 0 Administrative expense 0 0 Net changes $ 564,391 $ 1,773,958 $(1,209,567)

Values at June 30, 2017 $ 14,368,697 $ 7,824,063 $ 6,544,634

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The Net OPEB Liability has changed from June 30, 2017 to June 30, 2018 in this way:

TOL FNP NOL

Values at June 30, 2017 $ 14,368,697 $ 7,824,063 $ 6,544,634

Service cost 207,344 207,344 Interest 912,011 912,011 Differences between actual and expected experience 261,666 261,666 Assumption changes 479,432 479,432 Employer contributions 1,684,754 (1,684,754) Net investment income 494,962 (494,962) Benefits paid to retirees (588,894) (588,894) 0 Administrative expense 0 0 Net changes $ 1,271,559 $ 1,590,822 $ (319,263)

Values at June 30, 2018 $ 15,640,256 $ 9,414,885 $ 6,225,371

Exhibit 3 - Sensitivity of the Net OPEB Liability

The following presents the Net OPEB Liability (NOL) as well as what the NOL would be if it were calculated using a discount rate that is 1-percentage-point higher or lower than the current discount rate, as of June 30, 2017 and June 30, 2018:

1% Decrease Discount Rate 1% Increase 5.48 % 6.48 % 7.48 %

Net OPEB Liability 6-30-2017 $ 8,788,138 $ 6,544,634 $ 4,730,562


The following presents the Net OPEB Liability (NOL) as well as what the NOL would be if it were calculated using healthcare cost trend rates that are 1-percentage-point higher or lower than the current healthcare cost trend rates, as of June 30, 2017 and June 30, 2018:

1% Decrease Trend Rate 1% Increase 4.0 % 5.0 % 6.0 %



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Exhibit 4 - OPEB Expense for the Fiscal Year Ending June 30, 2019

For the year ending June 30, 2018, the District recognized OPEB expense of $639,934, computed as follows:

Service cost $ 200,817 Interest 877,856 Expected investment return (392,047) Administrative expense 0 Change in NOL due to changes in benefits 0 Recognition of difference between actual and expected experience 0 Recognition of changes in assumptions 0 Recognition of difference between projected and actual earnings on investments

(46,692)

Total $ 639,934

For the year ending June 30, 2019, the District will recognize OPEB expense of $633,079, computed as follows:

Service cost $ 207,344 Interest 912,011 Expected investment return (506,999) Administrative expense 0 Change in NOL due to changes in benefits 0 Recognition of difference between actual and expected experience 0 Recognition of changes in assumptions 0 Recognition of difference between projected and actual earnings on investments

20,723

Total $ 633,079

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Exhibit 5 - Deferred Outflows and Inflows of Resources

The values of deferred outflows and inflows of resources related to OPEB as of June 30, 2017, to be reported as of June 30, 2018, are:

Deferred Outflows Deferred Inflows Of Resources Of Resources

Differences between expected and actual experience $ 0 $ 0

Changes of assumptions 0 0

Net difference between projected and actual earnings on OPEB plan investments

0 186,767

District contributions subsequent to the measurement date

1,684,754 0

Total $ 1,684,754 $ 186,767

Amounts reported as deferred outflows and inflows of resources related to OPEB as of June 30 2017, to be reported as of June 30, 2018, will be recognized in OPEB expense as follows:

Year Ended June 30

2019 $ (46,692)

2020 (46,692)

2021 (46,692)

2022 (46,691)

2023 0

Thereafter 0

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The values of deferred outflows and inflows of resources related to OPEB as of June 30, 2018, to be reported as of June 30, 2019, are:

Deferred Outflows Deferred Inflows Of Resources Of Resources

Differences between expected and actual experience $ 238,713 $ 0

Changes of assumptions 437,377 0

Net difference between projected and actual earnings on OPEB plan investments

9,630 140,075

District contributions subsequent to the measurement date

UNKNOWN 0

Total $ UNKNOWN $ 140,075

“UNKNOWN” is the total amount contributed by the District to retirees’ benefits and to the PARS trust during the year ending June 30, 2019.

Amounts reported as deferred outflows and inflows of resources related to OPEB as of June 30 2018, to be reported as of June 30, 2019, will be recognized in OPEB expense as follows:

Year Ended June 30

2020 $ 20,723

2021 20,723

2022 20,724

2023 67,417

2024 65,008

Thereafter 351,050

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Exhibit 6 - Schedule of Changes in the Net OPEB Liability

Reporting date 6/30/2018 6/30/2019

Total OPEB liability Service cost $ 200,817 $ 207,344 Interest 877,856 912,011 Changes of benefit terms 0 0 Differences between actual and expected experience 0 261,666 Changes of assumptions 0 479,432 Benefits paid to retirees (514,282) (588,894) Net change in Total OPEB liability 564,391 1,271,559 Total OPEB liability – beginning 13,804,306 14,368,697 Total OPEB liability - ending $ 14,368,697 $ 15,640,256

Plan fiduciary net position Contributions - employer $ 1,622,734 $ 1,684,754 Net investment income 625,506 494,962 Benefits paid to retirees (514,282) (588,894) Administrative expense 0 0 Net change in plan fiduciary net position 1,773,958 1,590,822 Plan fiduciary net position - beginning 6,050,105 7,824,063 Plan fiduciary net position - ending $ 7,824,063 $ 9,414,885

Net OPEB Liability - ending $ 6,544,634 $ 6,225,371

Plan fiduciary net position as a percentage of the Total OPEB liability 54.45 % 60.20 %

Covered-employee payroll $ 5,313,725 $ 5,203,064

Net OPEB liability as a percentage of covered-employee payroll 123.16 % 119.65 %

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Exhibit 7 - Ten-Year Projection of Costs

Shown below are estimates of (a) the benefits expected to be paid to retirees, and (b) the amounts the District is expected to accrue as GASB 75 OPEB expense, for the next ten years. For these estimates, it is assumed that all actuarial assumptions and the size of the workforce will remain unchanged, that the promised benefits will remain the same, that the District will continue paying benefits to retirees each year, and that there are no experience gains or losses.

Employer-Paid Projected Retiree Implicit Rate GASB 75

Payments Subsidy Payments OPEB Expense Fiscal Year Ending:

2019 $ 581,000 $ 102,000 $ 633,079 2020 611,000 107,000 603,000 2021 649,000 121,000 533,000 2022 682,000 130,000 457,000 2023 717,000 129,000 421,000

2024 756,000 135,000 349,000 2025 790,000 118,000 274,000 2026 834,000 131,000 192,000 2027 880,000 135,000 103,000 2028 920,000 140,000 5,000

Exhibit 8 - Summary of Benefit Provisions

The District contributes toward post-retirement benefits for employees who retire after meeting certain age and service requirements. Retired employees are required to enroll in ACWA medical plans. The eligibility requirements and benefits payable are:

For employees hired before 3-1-1989 (Group A): Eligibility for retiree benefits is retirement from the District after at least age 50. 100% of retiree medical, dental and vision premiums, for the retired employee and dependent spouse and/or dependents. District also reimburses the retiree for Medicare Part B premiums paid for the retiree and spouse. Benefits are paid for life.

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For employees hired after 2-28-1989 but before 7-1-2005 (Group B): Eligibility for retiree benefits for employees who are at least age 50 with at least 5 years of service. 100% of retiree medical, dental and vision premiums, for the retired employee, plus a vested percentage for the dependent spouse. District also reimburses the retiree for Medicare Part B premiums paid for the retiree and spouse. Benefits are paid for life. The vested percentage, for spousal medical coverage, depends on the retiring employee’s job class and years of service:

• For general employees (GEU), after 15 years of service, 50%; after 20 years,75%; 25 or more years, 100%.

• For mid-management employees, after 10 years of service, 50%; after 15 years,75%; 20 or more years, 100%.

• For staff employees, after 5 years of service, 50%; after 10 years, 75%; 15 ormore years, 100%.

• For retired Board members, the same as mid-management if elected prior to1/1/1995. If elected after 12/31/1994, Directors are not eligible for retireebenefits.

For employees hired after 6-30-2005 (Group C): Eligibility for benefits is retirement for employees who are at least age 50 with at least 15 years of service (10 years for mid-management, 5 years for staff). The benefits payable are the same as those for the second group above.

For employees hired after 6-30-2014 (Group D): Eligibility for retiree benefits is for employees who are at least age 52, with at least 20 consecutive years of service prior to retirement. The District will provide 100% coverage of the least cost plan for the retiree only. For employees who are at least age 52, who have worked for the District at least 25 consecutive years, the District will provide 100% coverage for the retiree only of any of the plans offered by the District. These provisions apply to all employee groups: General Employees Unit (GEU), Mid-Management, and Staff.

Life insurance coverage is provided to all retired employees beginning in 1997. Coverage is $50,000 until age 70, $32,500 from age 70 to 74, $25,000 after age 75. There are 3 remaining retired Board members that qualify for life insurance coverage. Their coverage is $10,000 until age 65, $6,500 from 65 to 69, and $5,000 after age 70. Current and future Board members are not eligible for life insurance coverage.

Exhibit 9 - Summary of Actuarial Assumptions

Actuarial Assumptions: The following assumptions as of July 1, 2018 were selected by the District in accordance with the requirements of GASB 75. In my opinion, these assumptions are reasonable and appropriate for purposes of determining OPEB costs under GASB 75.

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15

Long-Term Expected Rate of Return on Investments: The long-term expected rate of return on investments was determined to be 6.25%. This was computed as PARS’s expected long-term mean rate of return of 6.25%.

Discount rate: 6.25% per year. The cash flows of the OPEB plan were projected to future years, assuming that the District will contribute an amount so that the assets always exceed expected benefits to retirees. Under that projection, the plan assets are projected to be adequate to pay all benefits to retirees in all future years, so the discount rate has been set equal to the long-term expected rate of return on investments, 6.25%. The discount rate was changed from 6.48% to 6.25% effective June 30 2018.

Premium Increases: Medicare Part B premiums are assumed to increase 3% per year after 2018. Dental and vision premiums are assumed to increase 4% per year. Life insurance premiums are assumed to remain unchanged. ACWA medical premiums are assumed to increase 5% per year after 2018.

Payroll Growth: Salaries are assumed to increase 3.25% per year in the future.

Coverage Elections: 100% of retiring employees who are eligible for medical benefits are assumed to elect coverage upon retirement, and to remain covered under District plans for life. 75% of future retirees with spouses are assumed to cover the spouse.

Mortality: Mortality rates are taken from the 2014 CalPERS OPEB Assumptions Model for “public agency miscellaneous”.

Funding Method: The Entry Age actuarial cost method has been used, with normal costs calculated as a level percentage of payroll, as required by GASB 75.

Retirement: Retirement rates are taken from the 2014 CalPERS OPEB Assumptions Model for “public agency miscellaneous, 2% at 55”. Sample rates are:

10 Years Service 20 Years Service 30 Years Service

Age 55 6.1 % 8.8 % 11.7 % Age 58 6.2 % 8.9 % 11.8 % Age 61 10.3 % 14.8 % 19.9 % Age 64 13.8 % 19.9 % 26.8 %

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Turnover (withdrawal): Likelihood of termination within the next year is taken from the 2014 CalPERS OPEB Assumptions Model for “public agency miscellaneous”. Sample rates are:

5 Years Service 10 Years Service 15 Years Service

Age 20 9.46 % Age 30 7.90 % 6.68 % 5.81 % Age 40 6.32 % 5.07 % 4.24 % Age 50 1.16 % 0.71 % 0.32 %

Age-Specific Medical Claims: The estimated per person medical costs (true costs of coverage) during 2018 fiscal year are as follows (rates are shown for certain ages only):

Age 40 $ 6,026 45 7,265 50 8,940 55 10,996 60 12,784 64 13,657

These age-specific rates were developed so as to reproduce in the aggregate the same total premium that would be paid to the carriers for all current employees and all current retirees.

Inflation: Inflation in future years is assumed to be 2.75% per year.

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Total General District Spousal Medical

(Employee Funded)

Present Value of Benefits 17,179,754$ 13,753,293$ 3,426,461$

Less: Value of Subsidized Premiums (1,643,341)$ (1,146,757)$ (496,584)$

Adjusted Present Value of Benefits 15,536,413$ 12,606,536$ 2,929,877$

Total OPEB Liability 15,640,256$ 12,614,041$ 3,026,215$

Less: Value of Subsidized Premiums (1,403,007)$ (977,894)$ (425,113)$

Adjusted OPEB Liability 14,237,249$ 11,636,147$ 2,601,102$

Contributions - OPEB Trust 7,913,541$ 6,065,593$ 1,847,948$

Investment Earnings - OPEB Trust 1,501,344$ 1,222,128$ 279,216$

Total Fair Value of Assets - OPEB Trust 9,414,885$ 7,287,721$ 2,127,164$

FUNDED STATUS - Adjusted Value of All Benefits 60.6% 57.8% 72.6%

FUNDED STATUS - Adjusted OPEB Liability 66.1% 62.6% 81.8%

FUNDING STATUS - OPEBWALNUT VALLEY WATER DISTRICT

JULY 1, 2018

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Regular Board Meeting – September 17, 2018

MINUTES OF REGULAR MEETING OF THE BOARD OF DIRECTORS OF WALNUT VALLEY WATER DISTRICT

September 17, 2018 At the Offices of the District

DIRECTORS PRESENT: Theodore L. Ebenkamp Edwin Hilden Scarlett Kwong Theresa Lee Allen Wu

DIRECTORS ABSENT: All present

STAFF PRESENT: Erik Hitchman, General Manager/Chief Engineer Brian Teuber, Assistant General Manager Sandy Olson, Director of Administrative Services Sherry Shaw, Director of Engineering Joshua Byerrum, Accounting Manager Donna DiLaura, Executive Secretary Jodi Johnson, Utility Service Lead Jim Ciampa, Legal Counsel

The meeting was called to order at 5:01 p.m. with President Ebenkamp presiding.

Guests and others in attendance: Three Valleys Municipal Water District (TVMWD) Directors David DeJesus and Joe Ruzicka, and TVMWD Chief Financial Officer James Linthicum.

Item 3: Public Comment ♦ There were no requests. (Item 3)

Item 4: Additions to the Agenda ♦ There were no requests. (Item 4)

Item 5: Reorder of Agenda ♦ There were no requests. (Item 5)

Item 6: Special Recognition ♦ Ms. Olson introduced Ms. Jodi Johnson, Utility Services Lead, and announced that Ms.

Johnson has completed the JPIA Professional Development Program, in both Operations andSupervisor Basics. (Items 6)

Item 7: Consider Approval of Consent Calendar ♦ The Board was asked to approve the Consent Calendar, including: the minutes of the regular

Board meeting held August 20, 2018, the minutes of the special Board meeting held August23, 2018, the check register, and the Community Outreach Update. (Items 7-1, 2, 3 and 4)

Motion No. 18-09-1273: Upon consideration thereof, it was moved by Director Wu,seconded by Director Hilden and unanimously carried (5-0), to approve the Consent Calendar, including the minutes of the regular Board meeting held August 20, 2018, the minutes of the special Board meeting held August 23, 2018, the check register, and the Community Outreach Update. (Items 7-1, 2, 3 and 4)

President Ebenkamp indicated Motion No. 18-09-1273 was approved by a (5-0) vote

Item 8: Director Expense Reports ♦ The Board was asked to receive, approve, and file the Board member expense reports

indicating per diem requests for meeting attendance and the individual reports of additionalexpenses incurred by the District on behalf of each Director for events occurring during August2018. (Item 8)

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Motion No. 18-09-1274: Upon consideration thereof, it was moved by Director Wu, seconded by Director Hilden and unanimously carried (5-0), to receive, approve, and file the Board member expense reports for meeting attendance and additional expenses incurred by the District on behalf of each Director for events occurring during the month of August 2018. (Item 8)


Item 9: Treasurer’s Report ♦ Mr. Teuber presented the District’s Statement of Revenues, Expenses, and Change in Net

Assets as of August 31, 2018; the District’s Statement of Net Assets as of August 31, 2018; and the Summary of Cash and Investments as of August 31, 2018. (Items 9 A-C)

Motion No. 18-09-1275: Upon consideration thereof, it was moved by Director Wu,

seconded by Director Hilden and unanimously carried (5-0), to receive, approve, and file the District’s Statement of Revenues, Expenses, and Change in Net Assets as of August 31, 2018, the District’s Statement of Net Assets as of August 31, 2018, and the Summary of Cash and Investments as of August 31, 2018. (Item 9 A-C)


Committee Chair Reports Item 10: Engineering Committee – Director Lee ♦ The Board was asked to authorize staff to forward a letter to the Puente Basin Watermaster

indicating the District’s preference that “Option 1” be used to calculate the collective import return flow credit. (Item 10-A) Motion No. 18-09-1276: Upon consideration thereof, it was moved by Director Wu,

seconded by Director Hilden and unanimously carried (5-0), to authorize staff to forward a letter to the Puente Basin Watermaster indicating the District’s preference that “Option 1” be used to calculate the collective import return flow credit. (Item 10-A)


♦ Director Lee referenced the Operations Report included in the Board packet. As this was an informational item only, Board action was not needed. (Item 10-B)

Item 11: Personnel Committee – Director Hilden ♦ The Board was asked to review the Association of California Water Agencies/Joint Powers

Insurance Authority (ACWA/JPIA) medical, dental, and vision plan premium increases that are effective January 1, 2019, in conjunction with the employee health benefit allotment established in the Terms and Conditions of Employment for 2017-2020 and with funding approved in the FY 2018-2019 budget. As this was an informational item only, Board action was not needed. (Item 11-A)

♦ The Board was advised that the premium for the ACWA/JPIA offered Employee Assistance Plan will not change for calendar year 2019. The cost per employee per month remains at $2.35. As this was an informational item only, Board action was not needed. (Item 11-B)

Item 12: Finance Committee – Director Ebenkamp reported on behalf of Director Wu ♦ The Board was asked to receive the annual review of the Identity Theft Prevention Program.

Staff and legal counsel have reviewed the program and no modifications are recommended at this time. Additionally, the Board received information on one reportable incident of Identity Theft involving a District customer. Staff investigated the occurrence and took appropriate

27


action in accordance with the Identity Theft Program. As these were informational items only, Board action was not needed. (12-A)

♦ The Board was asked to receive, approve, and file the September 2018 Consolidated Investment Transactions Report included in the Board packet. (Item 12-B) Motion No. 18-09-1277: Upon consideration thereof, it was moved by Director

Ebenkamp, seconded by Director Hilden and unanimously carried (5-0), to receive, approve, and file the District’s Consolidated Investment Transactions Report for the period of August 1, 2018 through August 31, 2018. (Item 12-B)


♦ Mr. Teuber reviewed the Revenue Bond Funds Held in Trust and detailed disbursement of bond proceeds report through August 31, 2018. As this was an informational item only, Board action was not needed. (Item 12-C)

Item 13: Public Information/Community Relations/Legislative Action Committee ♦ The Board received an update on state legislative matters that may be of interest to or have

an impact on the District. As this was an informational item only, Board action was not needed (Item 13)

Other Items

Item 14: TVMWD/MWD – Director Hilden ♦ Director Hilden reported that TVMWD addressed routine items at its meeting on September

5, 2018. (Item 14) Item 15: The P-W-R Joint Water Line Commission ♦ Mr. Hitchman reviewed the P-W-R Joint Water Line Commission water use report for the

month of August included in the Board packet. (Item 15) Item 16: Puente Basin Water Agency (PBWA) – Director Lee ♦ No report. The next PBWA meeting is scheduled for October 4, 2018. (Item 16)

Item 17: General Manager’s Report ♦ The Board received a follow-up report on prior Board actions. (Item 17-A) ♦ The Board received the District’s activities calendars for October, November and December

2018. (Item 17-B) ♦ The General Manager reported that the results of the Director’s re-rankings of the Core Values

will be presented at the September 20 Board workshop. (Item 17-C) Item 18: Water Supply and Drought ♦ The Board received reports and graphs of the following items: District potable and recycled

water use, Calendar Year 2018 purchase water projections, conservation goal summary, climate summary, and 2018 monthly water consumption versus the 2013 baseline year. Staff made note that the District’s water usage for August 2018 was 15.94% lower than usage in August 2013. (Item 18-A)

♦ The Board viewed reports on California’s water supply and reservoir conditions as of September 5, 2018. (Item 18-B)

Item 19: Directors’ Oral Reports (NOTE: Board meeting minutes provide written reports of Board meeting activities and committee meeting reports are given during the course of regular Board meeting activities. Directors include

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reports of their participation in non-expense/per diem paid community events as a matter of information.) (Item 19) ♦ In addition to District committee and Board meetings previously reported, Director Wu

attended a Spadra Basin GSA Executive Committee meeting, the City of Walnut “National Night Out” event, a meeting with the General Manager, a webinar titled “Wildfire Impact on Water Quality and Treatment.”

♦ Director Hilden stated that, in addition to District committee and Board meetings previously reported, he attended a San Gabriel Valley Economic Partnership Joint Board of Directors and Members meeting, the 12th Annual San Bernardino Water Conference, a San Gabriel Public Affairs Network “Sacramento Update” luncheon, Senator Ling Ling Chang’s community swearing in ceremony, an open house in support of Young Kim for Congress, and the District’s Mid-Management BBQ.

♦ Director Kwong reported that she attended a City of Diamond Bar Concert in the Park, a Coa Can Cup International Poem Competition, and the District Mid-Management BBQ.

♦ In addition to District committee and Board meetings previously reported, Director Lee indicated that she attended a Puente Basin Water Agency (PBWA) Commission meeting.

♦ Director Ebenkamp stated that, in addition to attending District committee and Board meetings, he attended a San Gabriel Valley Economic Partnership Joint Board of Directors and Members meeting, a PBWA meeting, the 12th Annual San Bernardino Water Conference, Senator Ling Ling Chang’s community swearing in ceremony, a Regional Chamber of Commerce Government Affairs Committee meeting, and District sponsored Harassment Prevention Training.

Item 20: Legal Reports ♦ Mr. Ciampa further updated the Board on matters relating to the proposed FCC Rulemaking

regarding cell phone towers. Mr. Ciampa noted that the Smart Communities Coalition, of which the District is a member, has submitted a petition for reconsideration of the FCC’s new rule that adopted a moratorium prohibiting local or state actions that would ban cell phone facilities. That petition will be considered at the FCC’s September 26 meeting. In addition, at that meeting, the FCC will consider further rules that will limit the amounts local agencies can charge for rent for small cell (i.e., 5G) facilities, at $270 per site and will shorten the amount of time in which a local agency can consider approval of such facilities. (Item 20)

Item 21: Items for Future Discussion ♦ No requests were made. (Item 21)

Item 22: Board of Directors Business A. At the request of Dr. Wu, the Board was asked to consider changing the December

Committee and Board meeting dates. Following a brief discussion, the meeting dates were changed as follows: (Item 22)

December Meetings Date/Time Committee Members

Chair/Member/Alternate

Personnel Wednesday, December 5, 4:00 p.m. Dirs. Hilden/Kwong/Ebenkamp

Public Information/ Legislative Action Wednesday, December 5, 4:45 p.m. Dirs. Wu/Hilden/Lee

Engineering Thursday, December 6, 4:00 p.m. Dirs. Lee/Ebenkamp/Kwong

Finance Thursday, December 6, 4:30 p.m. Dirs. Wu/Ebenkamp/Lee

Board Meeting Monday, December 17, 5:00 p.m.

Board Workshop TBD

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Item 23: Public Comment on Closed Session ♦ There were no requests to comment on either open or closed session items. (Item 23) Item 24: Adjourn to Closed Session – 5:55 p.m. Item 25: Closed Session A. The Board met in closed session in accordance with Government Code [§54956.9(d)(4)] to

discuss anticipated litigation matters with Legal Counsel – Three Potential Cases. (Item 25)

Item 26: Reconvene in Open Session/Report of Action Taken in Closed Session – 6:53 p.m. A. The Board met in closed session in accordance with Government Code [§54956.9(d)(4)] to

discuss three anticipated litigation matters with Legal Counsel. The Board was briefed on the facts and circumstances of those three matters and no reportable action under the Brown Act was taken on these matters. (Item 26)

Adjournment at 6:53 p.m.

Motion No: 18-09-1278: Upon consideration thereof, it was moved by Director Hilden, seconded by Director Lee and unanimously carried (5-0), to adjourn the meeting.


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Special Board Meeting – September 20, 2018

MINUTES OF A SPECIAL MEETING OF THE BOARD OF DIRECTORS OF WALNUT VALLEY WATER DISTRICT

September 20, 2018

At the Offices of the District

DIRECTORS PRESENT: Theodore L. Ebenkamp Edwin Hilden Scarlett Kwong Allen Wu DIRECTORS ABSENT: Theresa Lee

STAFF PRESENT: Erik Hitchman, General Manager/Chief Engineer Brian Teuber, Assistant General Manager Sandy Olson, Director of Administrative Services Sherry Shaw, Director of Engineering Dave Johnson, Director of Operations Joshua Byerrum, Accounting Manager Donna DiLaura, Executive Secretary Melanie Trevino, Administrative Assistant Jim Ciampa, Legal Counsel

The meeting was called to order at 4:03 p.m. with President Ebenkamp presiding. Guests and others in attendance: No guests were present. Item 3: Public Comment ♦ No comments were offered. (Item 3) Item 4: Re-ranking of Core Values ♦ The Board received the results of the second round of Board rankings. Mr. Hitchman stated that the

next step is to develop District goals, objectives and related actions based around the top six Core Values. The Board was then asked to approve the top six Core Values as follows:

• Reliability • Customer Service • Efficiency • Communication • Quality • Accountability

(Item 4)

Motion No: 18-09-1279: Upon consideration thereof, it was moved by Director Kwong, seconded by Director Wu and unanimously carried (4-0), to approve the top six Core Values (Reliability, Customer Service, Efficiency, Communication, Quality and Accountability).

President Ebenkamp indicated Motion No. 18-09-1279 was approved by a (4-0) vote Item 5: Consideration of Water Rate Adjustment to be Effective January 1, 2019 ♦ The Board was asked to consider approval of the proposed water rates, as shown in the tables

included in the staff report, to be effective January 1, 2019. The proposed rates were approved through the District’s Proposition 218 process, result in a projected rate increase for our average residential customer of approximately 3.2 percent. (Item 5)

Motion No: 18-09-1280: Upon consideration thereof, it was moved by Director Hilden,

seconded by Director Kwong and unanimously carried (4-0), to adopt the proposed rate increases effective January 1, 2019. The proposed rates were approved through the District’s Proposition 218 process, result in a projected rate increase for our average residential customer of approximately 3.2 percent. The Board noted that this increase incorporated into the FY 2018-19 Budget, ensures the continued sustainability and operations of the District’s water system,

32

Special Board Meeting – September 20, 2018

and balances funding needs of the District with rates that are affordable and manageable for our customers.


Item 6: Rate Study Update ♦ The Board was provided an update on the new Rate Study process and staff indicated it is still

evaluating Raftelis Financial Consultants’ proposal. (Item 6) Item 7: Public Comment on Closed Session ♦ There were no requests to comment on closed session items. (Item 7) Item 8: Adjourn to Closed Session – 4:26 p.m. (Item 8) Item 9: Closed Session A. The Board met in closed session in accordance with Government Code [§54956.9(d)(4)] to discuss

one anticipated litigation matter with Legal Counsel – One Potential Case. (Item 9)

Item 10: Reconvene in Open Session/Report of Action Taken in Closed Session – 4:29 p.m. A. The Board met in closed session in accordance with Government Code [§54956.9(d)(4)] to discuss

one anticipated litigation matter with Legal Counsel. The Board was briefed on the facts and circumstances of the matter, and no reportable action under the Brown Act was taken on the matter. (Item 10)

Adjournment at 4:30 p.m.

Motion No: 18-09-1281: Upon consideration thereof, it was moved by Director Wu, seconded by Director Hilden and unanimously carried (4-0), to adjourn the meeting.


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DateCheck

Number Employee Name Description Amount

9/27/2018 579 Teofilo Pasillas Educational Reimbursement 2,520.00$

In accordance with California Government Code Section 53065.5, the District shall, at least annually, disclose

all reimbursements paid to any employee for an individual charge that is at least one hundred dollars ($100).

Walnut Valley Water DistrictMonthly Employee Expense Reimbursements

Exceeding the Amount of $100.00 For the Month of September 30, 2018

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TO: Board of Directors FROM: General Manager SUBMITTED BY: Director of Administrative Services DATE: October 15, 2018 SUBJECT: Community Outreach Update


Recommendation For information only. Background Information: Conservation and Education Outreach Activities: 1. Bill Insert – October’s edition of the bill insert focuses on outdoor water use efficiency. As

we are hoping for cooler temperatures for the coming weeks, our message focuses on adjusting our outdoor water use habits in accordance with the weather.

2. Bill Envelope Snipe – “Let the Rain do the Work” is the theme for October’s bill snipe.

Customers are reminded to leave their irrigation system off at least 48 hours after measurable precipitation. The second side of the envelope lists the District’s various social media sites.

3. Facebook, Twitter, and Instagram – Our latest social media posts focus on the use of mulch in gardens. We let our followers know that adding mulch to their landscape will reduce evaporation and discourage weeds.

4. District Website – Customer satisfaction survey forms are now available

on the District’s website so customers can rate their customer service experience. Additionally, on the website customers will find an informative flyer highlighting information regarding the new statewide water-use efficiency regulations recently signed by Governor Brown. Concurrently, District staff members are working on an updated District website. Content from the current website is being transferred onto this new, mobile-friendly site.

5. Newspaper/Advertising Outreach – The District continues with its tradition of including

conservation messages in each edition of the Windmill. District staff is now currently working on developing the conservation ad for the November/December edition.

6. Distribution of Free Moisture Meter Giveaway – Customers continue submitting requests for

a free moisture meter. This free giveaway is continuously promoted by our Customer Services Representatives at the front counter and via our social media channels.

7. City of Diamond Bar – The City of Diamond Bar’s cable TV channel, DBtv, is currently playing

the District’s outreach videos. The outreach videos include topics such as the District’s enhanced online services, conservation tips, how to detect leaks by reading your water meter, and a District overview.

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8. High School Football Programs – District banners displaying water efficiency tips and ads are displayed by Diamond Bar, Diamond Ranch, Rowland and Walnut High Schools alongside of their football fields or as ads in their programs.

9. Bingo Ads – The District continues to publish conservation messages in both the Diamond

Bar High School and Walnut Senior Center bingo programs. Staff will periodically revise our outreach messages throughout the course of the year.

10. HET Check Distribution – Representatives of Diamond Bar, Rowland Heights, and Walnut

highs schools, including school district superintendents, have been invited to the October 15 WVWD Board meeting where they will be presented with a check for their assistance in our 2018 High Efficiency Toilet Distribution Program.

11. Project WET – K-12 educators in the District’s service area received information regarding

the October 18 Project WET workshop. Attendance is free and those teachers who attend will gain hands on experience on how to engage their students with interdisciplinary lessons that teach important concepts about water.

12. WEWAC EduBucks Grants – Teachers within the District’s service area have been invited to

apply for WEWAC’s annual EduBucks Grant program. This program awards funds to K-12 teachers for creative classroom projects that increase students’ awareness on the importance of water.

13. California Special Districts Association – CSDA is hosting a “Districts Make a Difference”

video scholarship contest. High school teachers and students from within our service area have been invited to participate in this video contest.

Community Events: 14. Rowland Heights Buckboard Days Parade Committee – Ms. Jillian Keller continues her

efforts in assisting the Rowland Heights Buckboards Days Parade Committee by attending their monthly planning meetings and assisting with event preparation.

15. Snow Creek Neighborhood Watch – Director Wu distributed moisture meters to members of

the Snow Creek neighborhood watch program on September 11.

16. California Friendly Landscape Class – Approximately 45 people attended the September 18 California Friendly Landscape Class held at the District office. All those in attendance received various conservation items which included a tote bag, moisture meter, a maintenance guide for landscapers, and much more.

17. SGV Legislative Power Luncheon – District representatives attended the September 21,

2018, Legislative Power Luncheon. Speakers included Congresswomen Grace Napolitano, State Senator Ling Ling Chang, Supervisor Janice Hahn, and Diamond Bar Mayor Ruth Low. A full-page conservation ad was published in the event’s program.

18. Taiwanese American Cultural Society of California – On October 8, District staff attended this

multicultural festival in Diamond Bar. A great time was had by our staff at the event where they passed out conservation items to the many in attendance. In addition to hosting a booth, the District published a full-page ad in the program.

19. CIE-SoCal Annual Convention – For this year’s annual convention and awards night on

October 13, the District reserved five seats to the awards dinner and submitted a half-page ad.

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20. City of Walnut’s 42nd Annual Family Festival – We are excited to partake in the City of

Walnut’s Family Festival on Saturday, October 13. Our activities in this year’s event include walking in the opening procession and hosting a community awareness booth.

21. Friends of Rowland Unified Schools (FORUS) Foundation – The 3rd Annual State of the

Schools breakfast event is quickly approaching. Members of the Board and District staff are scheduled to attend. Those in attendance will view our half-page ad in the event’s program, which depicts beautiful succulents.

22. Rowland Heights Buckboard Days Parade and Festival – The District is all set to participate

in the 46th annual parade and festival taking place on Saturday, October 20. Our Diamond-level sponsorship includes a full-page ad in the program. The day’s activities include walking the parade and hosting a booth. We can always count on our staff volunteers to represent the District well at both the parade and festival every year.

23. City of Diamond Bar’s America Recycles Day – Once again, the District will participate in the

City of Diamond Bar’s America Recycles Day, which is taking place on Saturday, November 3. We will host a conservation booth that will provide the public with information regarding recycled water as well as conservation information and giveaways.

24. Diamond Bar Community Foundation Holiday Gala – The District will provide a half-page

conservation ad sponsorship in the Diamond Bar Community Foundation’s Holiday Gala event program scheduled for Saturday, November 10.

Water Awareness Month Activities and Events: 25. Poster Contest – The artwork of Ms. Karrie Chu of Chaparral Middle School has been

selected for inclusion in Metropolitan Water District’s 2019 traveling art exhibition. A framed copy of Ms. Chu’s artwork will be presented to her and her family at the November WVWD Board meeting. Additionally, her artwork will be displayed on seven District fleet vehicle tailgates.

26. MWD Solar Boat – Diamond Ranch High School’s solar boat team was thrilled to receive the news that they were selected to participate in the 2019 MWD Solar Board competition. The team will be co-sponsored by our District, the City of Pomona, and Three Valleys Municipal Water District.

43

The following graph shows the activity of the District’s website over the last twelve months.

Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18

Page Views 16,635 16,058 16,701 16,331 17,951 15,379 18,631 13,412 18,333 17,009 19,373 19,699 16,713Visitors 5,211 5,220 5,521 5,369 5,902 5,162 6,008 4,353 5,654 5,270 5,899 5,690 5,333

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,00011,00012,00013,00014,00015,00016,00017,00018,00019,00020,00021,000

Num

ber o

f Vis

itors

or P

age

View

s

Month

Walnut Valley Water DistrictWeb Site Activity

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TREASURER’S REPORT October 15, 2018

1) District Statement of Revenues, Expenses, and Change in Net Assets as

of September 30, 2018

2) District Statement of Net Assets as of September 30, 2018

3) Summary of Cash Investments as of September 30, 2018

55

SeptemberActual Budget % of Budget

YTDActual

AnnualBudget % of Budget

Operating Revenues

Water Sales $4,009,313.57 $3,075,625.00 130.36% $11,590,003.02 $34,028,088.00 34.06%

Water Sales - Recycled 195,790.36 193,736.00 101.06% 678,996.21 1,818,279.00 37.34%

Hydroelectric Sales 4,310.44 2,500.00 172.42% 9,801.00 30,000.00 32.67%

Stand-by Charges 0.00% 18,287.66 825,000.00 2.22%

Total Operating Revenues 4,209,414.37 3,271,861.00 128.66% 12,297,087.89 36,701,367.00 33.51%

Operating Expenses

Operations 472,185.98 453,465.00 104.13% 1,416,042.37 5,615,268.00 25.22%

Engineering 70,459.66 85,671.00 82.24% 234,117.12 1,116,728.00 20.96%

Finance 155,149.62 179,547.00 86.41% 512,252.79 2,282,140.00 22.45%

Board of Directors/GM Office 88,051.77 96,125.00 91.60% 286,651.50 1,255,995.00 22.82%

Administrative Services 155,702.35 216,122.00 72.04% 577,136.50 2,752,103.00 20.97%

General Administration 86,702.25 90,094.00 96.24% 272,943.70 1,136,320.00 24.02%

Total Operating Expenses 1,028,251.63 1,121,024.00 91.72% 3,299,143.98 14,158,554.00 23.30%

Purchased Water & Related 2,272,067.83 1,883,854.00 120.61% 7,247,201.79 19,483,037.00 37.20%

Total Expenses 3,300,319.46 3,004,878.00 109.83% 10,546,345.77 33,641,591.00 31.35%

Income (Loss) From Operations 909,094.91 266,983.00 340.51% 1,750,742.12 3,059,776.00 57.22%

Nonoperating Revenues/(Expenses) 253,702.79 147,535.00 171.96% 505,955.37 1,098,260.00 46.07%

Income (Loss) Before Res. Rev & Deprec. 1,162,797.70 414,518.00 280.52% 2,256,697.49 4,158,036.00 54.27%

Restricted/Desig Rev & Other Exp. 73,578.61 0.00% 179,444.14 0.00%

Income (Loss) Before Depreciation 1,236,376.31 414,518.00 298.27% 2,436,141.63 4,158,036.00 58.59%

Depreciation & Amortization 422,380.83 0.00% 1,301,455.53 0.00%

Income Before Capital Contributions 813,995.48 414,518.00 196.37% 1,134,686.10 4,158,036.00 27.29%

Capital Contributions 223,417.69 0.00% 265,222.45 0.00%

Net Increase (Decrease) in Net Assets 1,037,413.17 414,518.00 250.27% 1,399,908.55 4,158,036.00 33.67%

Walnut Valley Water DistrictStatement of Revenues, Expenses & Changes in Net Assets

Summary by DivisionFor the Three Months Ending Sunday, September 30, 2018

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ASSETS

CURRENT ASSETS:

Cash & Investments - Unrestricted $25,892,884.60

Accounts Receivable:

Water 5,264,676.32

Taxes 46,626.47

Accrued Interest 190,824.50

Other 1,184,879.07

Standby Charges 35,587.19

Stored Water 3,575,179.80

Materials Inventory 536,153.66

Prepaid Expenses 500,316.26

TOTAL CURRENT ASSETS 37,227,127.87

RESTRICTED ASSETS

Cash & Investments - Restricted 20,093,164.36

Cash & Investments - Fiscal Agent 9,253,771.72

Interest Receivable 40,667.67

Investment in Joint Venture 14,705,148.44

TOTAL RESTRICTED ASSETS 44,092,752.19

OTHER ASSETS

CAPITAL ASSETS

Capital Assets 203,281,527.70

Construction in Progress 8,889,744.43

Less: Accumulated Depreciation (106,159,061.30)

NET CAPITAL ASSETS 106,012,210.83

TOTAL ASSETS 187,332,090.89

Walnut Valley Water DistrictStatement of Net Assets

Sunday, September 30, 2018

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DEFERRED OUTLFOW OF RESOURCES

Deferred Pension Contributions 1,165,468.00

Deferred Outflow - Actuarial 2,849,869.00

Deferred Outflow - OPEB 1,703,516.00

TOTAL DEFERRED OUTFLOW OF RESOURCES 5,718,853.00

LIABILITIES & FUND EQUITY

CURRENT LIABILITIES

Accounts Payable (3,753,682.88)

Other Current Liabilities (2,374,337.22)

Current Portion of Long Term Debt (465,000.00)

Interest Payable (63,979.17)

TOTAL CURRENT LIABILITES (6,656,999.27)

RESTRICTED LIABILITIES

Accounts Payable (4,451.00)

Deposits (1,798,968.30)

Construction Advances (10,579,331.91)

TOTAL RESTRICTED LIABILITIES (12,382,751.21)

LONG TERM DEBT & RELATED

PBWA Revenue Bonds 2013 A (15,355,000.00)

Deferred Bond Preimum (2,133,381.70)

Current Portion of Long Term Debt 465,000.00

Net Pension Liability (13,394,625.00)

Other Long-term Debt (7,635,711.70)

TOTAL LONG TERM DEBT & RELATED (38,053,718.40)

TOTAL LIABILITIES (57,093,468.88)



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DEFERRED INFLOW OF RESOURCES

Deferred Inflow of Resources - Actuarial (627,508.00)

Deferred Inflow of Resources - OPEB (186,767.00)

TOTAL DEFERRED INFLOW OF RESOURCES (814,275.00)

NET ASSETS

Invested in Capital Assets, Net of Related Debt 106,012,210.83

Restricted 14,221,619.28

Unrestricted 14,909,369.90

TOTAL NET ASSETS 135,143,200.01

TOTAL NET ASSETS 135,143,200.01



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WVWD – Staff Report TO: Board of Directors FROM: General Manager SUBMITTED BY: Director of Engineering DATE: October 15, 2018 SUBJECT: Consider Award of Contracts for Water Distribution System for Industry Business

Center - West (P.N. 14-3373) - Labor and Material Bids

Action/Discussion

Fiscal Impact

Resolution

Information Only

Recommendation Request the Board of Directors: 1. Authorize the General Manager to execute contracts for labor and materials for the subject project

per the following bid results:

Bid Supplier Price Delivery Labor Doty Bros. Equipment Co. $ 965,100.00 N/A

Ductile Iron Pipe Ferguson Waterworks 484,878.34 14-21 Days Polyvinyl Chloride (PVC) Pipe Ferguson Waterworks 70,536.74 28 Days Butterfly & Resilient Wedge Gate Valves

Dangelo Co. 47,920.49 10 Days

Saddles, Setters & Jumpers United Water Works 14,507.25 21 Days Service Materials United Water Works 21,691.41 STK-7 days Ductile Iron Fittings & Misc. Mtls. Inland Water Works 23,091.96 14 days

2. Find that the project is exempt pursuant to Article 11.5 Master Environmental Impact Report

(Section 15177(b). Subsequent Projects within the Scope of the MEIR).

3. Authorize Staff to file a Notice of Exemption for the subject project with the Office of the Los Angeles County Registrar-Recorder/County Clerk.

Background Information Successor Agency to Industry Urban Development Agency (Agency) has proposed a mixed-use commercial and industrial development of 552 acres east and west of Grand Avenue between UPRR and SR-60 Freeway. The Agency is currently developing the areas on the west side of Grand Avenue and has requested the District to install domestic and recycled water distribution systems to serve the development. The initial phase of the project will only include domestic and recycled water mains and recycled water services for the slope areas. Future fire protection, domestic and recycled water services for each parcel will be installed as each parcel is being developed.

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The District-designed project consists of the installation of approximately 13,325 linear feet of 16” domestic water main, 9,470 linear feet of 8” recycled water main, 5 blow-off assemblies, 13 recycled metered services, 4 air/vac. assemblies, and 3 manual air releases. Bids were solicited and received by the District to provide the labor and materials for the subject project. Attached for your information are bid recaps for both the labor and material bids. In addition, District staff has determined, based on the CEQA Environmental Review Guidelines, that the project is exempt pursuant to Article 11.5 Master Environmental Impact Report (Section 15177(b). Subsequent Projects within the Scope of the MEIR). Impacts to the water system were discussed within the Industry Business Center Plan of Development Environmental Impact Report (State Clearing House #2003121086) and Supplement Environmental Impact Report (SEIR). Attachment Labor Bid Recap Materials Bid Recap Notice of Exemption

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CONTRACTORS TOTAL

Brkich No Bid

Doty $965,100.00

Griffith No Bid

J.F. Shea No Bid

Kana $1,267,725.00

McKinney No Bid

Paulus $1,504,674.00

Rasic No Bid

Sully-Miller $1,824,000.00

T.E. Roberts $1,330,678.75


Labor Bid Results

Industry Business Center - WestProject No. 14-3373

October 1, 2018 @ 2:00 PM

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Ductile Iron Valves PVC Pipe Setters, Saddles & Jumpers Service Materials Misc. Materials

D'Angelo $517,374.95 $47,920.49 $74,945.09 $18,105.68 $23,389.58 $25,069.94

Ferguson $484,878.34 $54,996.75 $70,536.74 $18,677.34 $24,371.62 $28,429.27

Inland $546,596.54 $56,435.21 $81,376.02 No Bid $24,028.36 $23,091.96

S&J $588,140.16 $53,223.81 $73,088.18 No Bid $23,859.67 $23,362.00

United $515,092.40 No Bid $76,144.77 $14,507.25 $21,691.41 No Bid

Western $518,176.56 $56,435.21 $77,368.98 No Bid $23,635.63 No Bid

October 1, 2018 @ 10:00 AM

WALNUT VALLEY WATER DISTRICT271 South Brea Canyon Road, Walnut, CA 91789

Materials Bid Results

Industry Business Center -WestProject No. 14-3373

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WALNUT VALLEY WATER DISTRICT 271 S. Brea Canyon Road, Walnut, CA 91789

Notice of Exemption

To:

Office of Planning and Research 1400 Tenth Street, Room 121 Sacramento, CA 95814

From: (Public Agency)

Walnut Valley Water District 271 S. Brea Canyon Road Walnut, CA 91789

County Clerk County of Los Angeles Registrar-Recorder/County Clerk 12400 Imperial Highway Norwalk, CA 90650

Project Title:

Industry Business Center- West (P.N. 14-3373) Project Location - Specific:

City of Industry – West of Grand Avenue between Baker Parkway and SR-60 Freeway (see attached vicinity map).

Project Location – City:

Industry

Project Location – County:

Los Angeles Description of Nature, Purpose, and Beneficiaries of Project:

Successor Agency to the Industry Urban Development Agency has proposed a mixed-use commercial and industrial development of 552 acres. Due to this project, the District will be installing new domestic and recycled water distribution systems including 16” and 8” water mains and appurtenances to provide future fire protection and water services to the development.

Name of Public Agency Approving Project:

Walnut Valley Water District Name of Person or Agency Carrying Out Project:

Walnut Valley Water District Exempt Status: (check one)

Ministerial (Sec. 21080(b)(1); 15268);

Declared Emergency (Sec. 21080(b)(3); 15269(a));

Emergency Project (Sec. 21080(b)(4); 15269(b)(c));

Categorical Exemption. State type and section Number:

CEQA Statute and Guidelines Article 11.5 Master Environmental Impact Report; Section 15177 (b): Industry Business Center Plan of Development EIR and SEIR (State Clearing House #2003121086)

Reasons why project is exempt:

The proposed project is exempt under CEQA Statute and Guidelines Article 11.5 Master Environmental Impact Report, Section 15177(b) as impacts to the water system were discussed within the Industry Business Center Plan of Development Environmental Impact Report and Supplement Environmental Impact Report (State Clearing House #2003121086).

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Lead Agency Contact Person:

Erik J. Hitchman

Area Code/Telephone/Extension:

(909) 595-1268, Ext. 244 If filed by applicant: 1. Attached certified document of exemption finding. 2. Has a Notice of Exemption been filed by the public agency approving the

project? Yes No

Signature:_______________________________________ Erik Hitchman General Manager/Chief Engineer

Date: October 16, 2018

Signed by Lead Agency

Date received for filing at OPR:__________________

Signed by Applicant

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Association of Environmental Professionals 2016 CEQA Guidelines

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Article 11.5 Master Environmental Impact Report

SECTIONS 15175 TO 15179.5

15175. MASTER EIR (a) The Master EIR procedure is an alternative to preparing a project EIR, staged EIR, or program

EIR for certain projects which will form the basis for later decision making. It is intended to streamline the later environmental review of projects or approval included within the project, plan or program analyzed in the Master EIR. Accordingly, a Master EIR shall, to the greatest extent feasible, evaluate the cumulative impacts, growth inducing impacts, and irreversible significant effects on the environment of subsequent projects.

(b) A lead agency may prepare a Master EIR for any of the following classes of projects:

(1) A general plan, general plan update, general plan element, general plan amendment, or specific plan.

(2) Public or private projects that will be carried out or approved pursuant to, or in furtherance of, a redevelopment plan.

(3) A project that consists of smaller individual projects which will be carried out in phases.

(4) A rule or regulation which will be implemented by later projects.

(5) Projects that will be carried out or approved pursuant to a development agreement.

(6) A state highway project or mass transit project which will be subject to multiple stages of review or approval.

(7) A plan proposed by a local agency, including a joint powers authority, for the reuse of a federal military base or reservation that has been closed or is proposed for closure by the federal government.

(8) A regional transportation plan or congestion management plan.

(9) Regulations adopted by the California Department of Fish and Game for the regulation of hunting and fishing.

(c) A lead agency may develop and implement a fee program in accordance with applicable provisions of law to generate the revenue necessary to prepare a Master EIR.

Note: Authority cited: Section 21083, Public Resources Code; Reference: Sections 21156, 21157, and 21089, Public Resources Code.

15176. CONTENTS OF A MASTER EIR A lead agency shall include in a Master EIR all of the following:

(a) A detailed discussion as required by Section 15126.

(b) A description of anticipated subsequent projects that are within the scope of the Master EIR, including information with regard to the kind, size, intensity, and location of the subsequent projects, including, but not limited to all of the following:

(1) The specific type of project anticipated to be undertaken such as a single family development, office-commercial development, sewer line installation or other activities.

(2) The maximum and minimum intensity of any anticipated subsequent project, such as the number of residences in a residential development, and with regard to a public works facility, its anticipated capacity and service area.

(3) The anticipated location for any subsequent development projects, and, consistent with the rule of reason set forth in Section 15126.6(f), alternative locations for any such projects.

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(4) A capital outlay or capital improvement program, or other scheduling or implementing device that governs the submission and approval of subsequent projects, or an explanation as to why practical planning considerations render it impractical to identify any such program or scheduling or other device at the time of preparing the Master EIR.

(c) A description of potential impacts of anticipated projects for which there is not sufficient information reasonably available to support a full assessment of potential impacts in the Master EIR. This description shall not be construed as a limitation on the impacts which may be considered in a focused EIR.

(d) Where a Master EIR is prepared in connection with a project identified in subdivision (b)(1) of section 15175, the anticipated subsequent projects included within a Master EIR may consist of later planning approvals, including parcel-specific approvals, consistent with the overall planning decision (e.g., general plan, or specific plan, or redevelopment plan) for which the Master EIR has been prepared. Such subsequent projects shall be adequately described for purposes of subdivision (b) or of this section (15176) if the Master EIR and any other documents embodying or relating to the overall planning decision identify the land use designations and the permissible densities and intensities of use for the affected parcel(s). The proponents of such subsequent projects shall not be precluded from relying on the Master EIR solely because that document did not specifically identify or list, by name, the subsequent project as ultimately proposed for approval.

Note: Authority cited: Section 21083, Public Resources Code; Reference: Section 21157, Public Resources Code.

15177. SUBSEQUENT PROJECTS WITHIN THE SCOPE OF THE MEIR (a) After a Master EIR has been prepared and certified, subsequent projects which the lead agency

determines as being within the scope of the Master EIR will be subject to only limited environmental review.

(b) Except as provided in subdivision (2) of this subdivision, neither a new environmental document nor the preparation of findings pursuant to section 15091 shall be required of a subsequent project when all of the following requirements are met:

(1) The lead agency for the subsequent project is the lead agency or any responsible agency identified in the Master EIR.

(2) The lead agency for the subsequent project prepares an initial study on the proposal. The initial study shall analyze whether the subsequent project was described in the Master EIR and whether the subsequent project may cause any additional significant effect on the environment which was not previously examined in the Master EIR.

(3) The lead agency for the subsequent project determines, on the basis of written findings, that no additional significant environmental effect will result from the proposal, no new additional mitigation measures or alternatives may be required, and that the project is within the scope of the Master EIR. “Additional significant environmental effect” means any project-specific effect which was not addressed as a significant effect in the Master EIR.

(c) Whether a subsequent project is within the scope of the Master EIR is a question of fact to be determined by the lead agency based upon a review of the initial study to determine whether there are additional significant effects or new additional mitigation measures or alternatives required for the subsequent project that are not already discussed in the Master EIR.

(d) Prior to approval of the proposed subsequent project, the lead agency shall incorporate all feasible mitigation measures or feasible alternatives appropriate to the project as set forth in the Master EIR and provide notice in the manner required by Section 15087.

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(e) When the lead agency approves a project pursuant to this section, the lead agency shall file a notice in the manner required by Section 15075.

Note: Authority cited: Section 21083, Public Resources Code; References: Sections 21157, 21157.6 and 21158, Public Resources Code.

15178. SUBSEQUENT PROJECTS IDENTIFIED IN THE MEIR (a) When a proposed subsequent project is identified in the Master EIR, but the lead agency cannot

make a determination pursuant to Section 15177 that the subsequent project is within the scope of the Master EIR, and the lead agency determines that the cumulative impacts, growth inducing impacts and irreversible significant effects analysis in the Master EIR is adequate for the subsequent project, the lead agency shall prepare a mitigated negative declaration or a focused EIR if, after preparing an initial study, the lead agency determines that the project may result in new or additional significant effects. Whether the cumulative impacts, growth inducing impacts and irreversible significant effects analyses are adequate is a question of fact to be determined by the lead agency based upon a review of the proposed subsequent project in light of the Master EIR.

(b) A lead agency shall prepare a mitigated negative declaration for any proposed subsequent project if both of the following occur:

(1) The initial study prepared pursuant to Section 15177 has identified potentially new or additional significant environmental effects that were not analyzed in the Master EIR; and

(2) Feasible mitigation measures or alternatives will be incorporated to revise the subsequent project before the negative declaration is released for public review pursuant to Section 15073 in order to avoid or mitigate the identified effects to a level of insignificance.

(c) A lead agency shall prepare a focused EIR if the subsequent project may have a significant effect on the environment and a mitigated negative declaration pursuant to subdivision (b) of this section cannot be prepared.

(1) The focused EIR shall incorporate by reference the Master EIR and analyze only the subsequent project’s additional significant environmental effects and any new or additional mitigation measures or alternatives that were not identified and analyzed by the Master EIR. “Additional significant environmental effects” are those project-specific effects on the environment which were not addressed as significant in the Master EIR.

(2) A focused EIR need not examine those effects which the lead agency, prior to public release of the focused EIR, finds, on the basis of the initial study, related documents, and commitments from the proponent of a subsequent project, have been mitigated in one of the following manners:

(A) Mitigated or avoided as a result of mitigation measures identified in the Master EIR which the lead agency will require as part of the approval of the subsequent project;

(B) Examined at a sufficient level of detail in the Master EIR to enable those significant effects to be mitigated or avoided by specific revisions to the project, the imposition of conditions of approval, or by other means in connection with approval of the subsequent project; or

(C) The mitigation or avoidance of which is the responsibility of and within the jurisdiction of another public agency and is, or can and should be, undertaken by that agency.

(3) The lead agency‘s findings pursuant to subdivision (2) shall be included in the focused EIR prior to public release pursuant to Section 15087.

(4) A focused EIR prepared pursuant to this section shall analyze any significant environmental effects when:

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(A) Substantial new or additional information shows that the adverse environmental effect may be more significant than was described in the Master EIR; or

(B) Substantial new or additional information shows that mitigation measures or alternatives which were previously determined to be infeasible are feasible and will avoid or reduce the significant effects of the subsequent project to a level of insignificance.

(d) A lead agency shall file a notice of determination shall be filed pursuant to Section 15075 if a project has been approved for which a mitigated negative declaration has been prepared pursuant to this section and a notice of determination shall be filed pursuant to Section 15094 if a project has been approved for which a focused EIR has been prepared pursuant to this section.

(e) When a lead agency determines that the cumulative impacts, growth inducing impacts and irreversible significant effects analysis in the Master EIR is inadequate for the subsequent project, the subsequent project is no longer eligible for the limited environmental review available under the Master EIR process and shall be reviewed according to Article 7 (commencing with Section 15080) of these guidelines. The lead agency shall tier the project specific EIR upon the Master EIR to the extent feasible under Section 15152.

Note: Authority cited: Section 21083, Public Resources Code; References: Sections 21081(a)(2), 21157.5 and 21158, Public Resources Code.

15179. LIMITATIONS ON THE USE OF THE MASTER EIR (a) The certified Master EIR shall not be used for a subsequent project described in the Master EIR

in accordance with this article if either:

(1) The Master EIR was certified more than five years prior to the filing of an application for a subsequent project except as set forth in subsection (b) below, or

(2) After the certification of the Master EIR, a project not described in the certified Master EIR as an anticipated subsequent project is approved and the approved project may affect the adequacy of the Master EIR for any subsequent project that was described in the Master EIR.

(b) A Master EIR that was certified more than five years prior to the filing of an application for a subsequent project described in the Master EIR may be used in accordance with this article to review such a subsequent project if the lead agency reviews the adequacy of the Master EIR and takes either of the following steps:

(1) Finds that no substantial changes have occurred with respect to the circumstances under which the Master EIR was certified, or that there is no new available information which was not known and could not have been known at the time the Master EIR was certified; or

(2) Prepares an initial study, and, pursuant to the findings of the initial study, does either (A) or (B) below:

(A) certifies a subsequent or supplemental EIR that updates or revises the Master EIR and which either:

1. is incorporated into the previously certified Master EIR, or

2. references any deletions, additions or other modifications to the previously certified Master EIR.;

(B) approves a mitigated negative declaration that addresses substantial changes that have occurred with respect to the circumstances under which the Master EIR was certified or the new information that was not known and could not have been known at the time the Master EIR was certified.

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WALNUT VALLEY WATER DISTRICT 271 S. Brea Canyon Road

Walnut, CA 91789

PROJECT DESCRIPTION: • Project Name: Industry Business Center - West P.N. 14-3373 • Location:

• City of Industry – West of Grand Avenue between Baker Parkway and SR-60 Freeway

• Background:

Successor Agency to Industry Urban Development Agency (Agency) has proposed a mixed-use commercial and industrial development of 552 acres east and west of Grand Avenue between UPRR and SR-60 Freeway. The Agency is currently developing the areas on the west side of Grand Avenue and has requested the District to install domestic and recycled water distribution systems to serve the development. The initial phase of the project will only include domestic and recycled water mains and recycled water services for the slope areas. Future fire protection, domestic and recycled water services for each parcel will be installed as each parcel is being developed.

• Scope of Work:

The District-designed project consists of the installation of approximately 13,325 linear feet of 16” domestic water main, 9,470 linear feet of 8” recycled water main, 5 blow-off assemblies, 13 recycled metered services, 4 air/vac. assemblies, and 3 manual air releases.

• Benefits:

The project will make domestic and recycled water systems available for future fire protection and water services to the development.

CONTRACTOR: To be determined • Contract Award Date: [Type date contract is awarded] SCHEDULES: CONTRACT DOCUMENTS: ACTUAL: • Contract Duration: 128 Working Days • Construction Began: [Input date on NTP] • Construction Ends: [Input Est. end date]

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TOTAL PROJECT COSTS: • Original Contract Amount: [Input contract amount] • Net Change Order Amount: [Input change order amount] • Revised Contract Amount: [Input revised amount] PROJECT CONTACTS: Tai Diep/Ginger Han

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WVWD – Staff Report TO: Board of Directors FROM: General Manager SUBMITTED BY: Director of Engineering DATE: October 15, 2018 SUBJECT: Acceptance of Work and Notice of Completion for Major Contracts: Water

Distribution System for Tract 49059 (P.N. 16-3430); and Oakleaf Canyon Reservoirs Coating (P.N. 17-3501)

Action/Discussion

Fiscal Impact

Resolution

Information Only

Recommendation 1. Accept the work as installed for the projects listed below.

2. Authorize the filing of Notice of Completion for the projects listed below. Project Description Contractor 16-3430 Water Distribution System for Tract 49059 Doty Bros. Equipment Co. 17-3501 Oakleaf Canyon Reservoirs Coating Advanced Industrial Services, Inc. Background Information The contractor has completed work on the following projects and all work has been performed in accordance with the contract documents. The project descriptions and vicinity maps are attached. Attachments Notice of Completions Vicinity Maps Project Descriptions

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X:\Bdmtgs\Committee Meeting Docs\Eng Cttee\2018\October\Attachment for Oakleaf Canyon-Notice of Completion.docx2015

RECORDING REQUESTED BY: Walnut Valley Water District WHEN RECORDED MAIL TO: Walnut Valley Water District 271 South Brea Canyon Road Walnut, CA 91789

SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

NOTICE OF COMPLETION

Notice is hereby given that: Walnut Valley Water District, a California Water District, hereby requests this Notice of Completion be filed for the Water Distribution System for Tract 49059 on Meadow Pass Road, approximately 385’ northeast of Pierre Road. The work of improvement was completed on September 21, 2018. The contractor for said work of improvement was Doty Bros. Equipment Co., 11232 E. Firestone Blvd., Norwalk, CA 90650. The property upon which work of improvement was completed is in the City of Walnut, County of Los Angeles, State of California and is described as follows:

Water Distribution System for Tract 49059 Project No.: 16-3430

Dated: October 15, 2018 WALNUT VALLEY WATER DISTRICT By: Erik Hitchman, General Manager

VERIFICATION The undersigned declares that he is the Secretary of the public corporation that executed the foregoing notice as owner of the interest on the property described therein, that he makes this verification on behalf of said corporation, that he has read said notice and knows its contents, and that the facts therein are true to the best of his knowledge and belief. The undersigned declares under penalty of perjury that the foregoing is true and correct. Executed at Walnut, California this 15th day of October, 2018. By: __________________________________________

Erik Hitchman

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Walnut, CA 91789

PROJECT DESCRIPTION: • Project Name:

Water Distribution System for Tract 49059 P.N. 16-3430 • Location:

City of Walnut –Meadow Pass Road, approximately 385’ northeast of Pierre Road. • Background:

The Developer requested the District to install a domestic water distribution system to serve the proposed Tract 49059 consisting of 6 residential units.

• Scope of Work: The District-designed project consists of the installation of approximately 400 linear feet of 6” domestic water main, 1 fire hydrant, 1 blow-off, 1 air/vac. assembly, and 6 residential metered services.

• Benefits:

The project will provide water services and fire protection for the proposed units. CONTRACTOR: Doty Bros. Equipment Co. • Contract Award Date: December 19, 2016 SCHEDULES: CONTRACT DOCUMENTS: ACTUAL: • Contract Duration: 21 Working Days • Construction Began: January 12, 2017 August 21, 2018 • Construction Ends: February 10, 2017 September 21, 2018 TOTAL PROJECT COSTS: • Original Contract Amount: $66,866.00 • Net Change Order Amount: [Input change order amount] • Revised Contract Amount: [Input revised amount] PROJECT CONTACTS: Tai Diep/Ginger Han

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RECORDING REQUESTED BY: Walnut Valley Water District WHEN RECORDED MAIL TO: Walnut Valley Water District 271 South Brea Canyon Road Walnut, CA 91789

SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

NOTICE OF COMPLETION

Notice is hereby given that: Walnut Valley Water District, a California Water District, hereby requests this Notice of Completion be filed for the Oakleaf Canyon Reservoirs Coating. The work of improvement was completed on September 13, 2018. The contractor for said work of improvement was Advanced Industrial Services, Inc., 7831 Alondra Blvd., Paramount, CA 90723. The property upon which work of improvement was completed is in the City of Diamond Bar, County of Los Angeles, State of California and is described as follows:

Oakleaf Canyon Reservoirs Coating 2400 Oakleaf Canyon Road, Rowland Heights, CA 91789

Project No.: 17-3501 Dated: October 15, 2018 WALNUT VALLEY WATER DISTRICT By: Erik Hitchman, General Manager

VERIFICATION The undersigned declares that he is the Secretary of the public corporation that executed the foregoing notice as owner of the interest on the property described therein, that he makes this verification on behalf of said corporation, that he has read said notice and knows its contents, and that the facts therein are true to the best of his knowledge and belief. The undersigned declares under penalty of perjury that the foregoing is true and correct. Executed at Walnut, California this 15th day of October, 2018. By: Erik Hitchman

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Walnut, CA 91789

PROJECT DESCRIPTION: • Project Name:

Oakleaf Canyon Reserovirs Coating 2400 Oakleaf Canyon Road P.N. 17-3501

• Location:

City of Rowland Heights – 2400 Oakleaf Canyon Road. • Background:

Oakleaf Canyon Tanks A and B were constructed in 1985 and 1992, respectively. The District has implemented a maintenance program to recoat the District’s reservoirs based upon age of the reservoirs and type of coating materials used. In addition, the District has for many years conducted an ongoing periodic reservoir cleaning and inspection program. Following the inspection of these tanks, it was recommended for both interior and exterior recoating.

• Scope of Work:

The District-designed project consists of the removal of the existing interior and exterior coating and recoating of both tanks. The project also includes removal of all existing downspouts on Tank B and the installation of new downspouts at their existing locations.

• Benefits:

The project will extend the life of the tanks and provide supply reliability. CONTRACTOR: [Type contractor name] • Contract Award Date: Advanced Industrial Services, Inc. SCHEDULES: CONTRACT DOCUMENTS: ACTUAL: • Contract Duration: 86 Working Days • Construction Began: February 14, 2018 February 26, 2018 • Construction Ends: June 14, 2018 September 13, 2018

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TOTAL PROJECT COSTS: • Original Contract Amount: $569,900.00 • Net Change Order Amount: [Input change order amount] • Revised Contract Amount: [Input revised amount] PROJECT CONTACTS: Sheryl L. Shaw

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WVWD – Staff Report TO: Board of Directors FROM: General Manager DATE: October 15, 2018 SUBJECT: Authorization to Execute the Los Angeles County Water Agency Mutual

Assistance Agreement

Action/Discussion Fiscal Impact Resolution Information Only Recommendation Request the Board of Directors authorize the General Manager to execute the Los Angeles County Water Agency Assistance Agreement. Background Information As a member of the Public Water Agencies Group (PWAG), the District is participating in a regional planning effort to establish and coordinate emergency response procedures in the event of an emergency. Part of this effort includes providing in-person emergency response training, which all District employees will attend. Additionally, the District has an opportunity to participate in a PWAG member agency specific intrastate program for Mutual Aid, Response and Assistance (Program). Through this Program, member utilities coordinate response activities and share resources during emergencies, and planned or unplanned outages. In order to participate in the Program, the District must be a party to the Los Angeles County Mutual Response Agreement, a copy of which is attached. The Agreement sets forth the procedures and standards for the administration of the Program among the parties. This agreement was prepared with input from several participants, including PWAG’s Legal Counsel, Mr. Jim Ciampa. One item of note is that all costs associated with providing assistance to another member utility are reimbursable. Attachment as noted

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Mutual Response Agreement Los Angeles County Water Agency Mutual Assistance Agreement

This AGREEMENT is made and entered into by the signatories to this Agreement, as listed on Exhibit A hereto, which have adopted and signed this agreement to provide mutual assistance in times of emergency in accordance with the California Emergency Services Act and the California Disaster and Civil Defense Master Mutual Aid Agreement; and to provide reimbursement for equipment, supplies and personnel made available on an emergency basis as specified herein. Said water utilities are individually referred to herein as a “Member Utility” and all of said water utilities are referred to herein collectively as "the parties." In consideration of the mutual covenants and agreements hereinafter set forth, the parties agree to provide mutual assistance to one another in times of emergency as follows:

ARTICLE I. PURPOSE

Recognizing that emergencies may require assistance in the form of personnel, equipment, and supplies from outside the area of an emergency’s impact, the parties hereby establish an Intrastate Program for Mutual Aid, Response and Assistance. Through this Mutual Aid, Response and Assistance Program (the “Program”), Members coordinate response activities and share resources during emergencies and assist during local emergencies or planned or unplanned outages, as defined herein. This Agreement sets forth the procedures and standards for the administration of the Program among the parties.

ARTICLE II. DEFINITIONS

A. Authorized Official – An employee or officer of a Member Utility who is authorized to:

1. Request assistance; 2. Offer assistance; 3. Refuse to offer assistance or 4. Withdraw assistance under this agreement.

B. Emergency – A natural or human caused event or circumstance causing, or imminently

threatening to cause, impact to the operations of a Member Utility’s system, loss of life, injury to person or property, human suffering, or financial loss, and includes, but is not limited to, fire, flood, severe weather, earthquake, civil disturbance, riot, explosion, drought, volcanic activity, spills or releases of oil or hazardous materials, contamination, utility or transportation emergencies, disease, blight, infestation, intentional acts, sabotage, declaration of war, or other conditions which is, or is likely to be, beyond the control of the services, personnel, equipment, and facilities of a Member Utility and requires mutual assistance.

C. Members or Member Utilities – Any public or private water utility that manifests intent to

participate in the Program by executing this Agreement.

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1. Associate Member – Any non-utility participant, approved by the Committee defined in Article III below, that provides a support role for the Program.

2. Requesting Member – A Member Utility who requests aid or assistance under the Program.

3. Responding Member – A Member Utility that responds to a request for aid or assistance under the Program.

4. Non-Responding Member - A Member Utility or Associate Member that does not provide aid or assistance during a Period of Assistance under the Program.

D. Confidential Information - Any document shared with any signatory of this Agreement that

is marked confidential, including but not limited to any map, report, notes, papers, opinion, or e-mail which relates to the system vulnerabilities of a Member Utility or Associate Member.

E. Period of Assistance – A specified period of time when a Responding Member assists a

Requesting Member. The period commences when personnel, equipment, or supplies depart from Responding Member’s facility and ends when the resources return to their facility (portal to portal). All protections identified in this Agreement apply during this period. The specified Period of Assistance may occur during response to or recovery from an Emergency, as previously defined, or during an Outage, as defined herein.

F. National Incident Management System (NIMS) - A national, standardized approach to

incident management and response that sets uniform processes and procedures for emergency response operations.

G. Standardized Emergency Management System (SEMS) - A standardized approach to

field command and jurisdictional management and response set forth by State of California Code of Regulations for multi-agency or multi-jurisdictional response to an emergency.

H. Outage – A period of time where a Member’s water supply is interrupted to the extent that

the interruption jeopardizes the health and safety of the Member’s customers. An Outage is “planned” when the Member is given at least three (3) days prior notice of the interruption in supply. An Outage is “unplanned” when the Outage occurs without at least three (3) days prior notice of the interruption in supply, including when the Outage occurs unexpectedly.

ARTICLE III. ADMINISTRATION

The Program shall be administered through the Public Water Agencies Group Emergency Preparedness Coordinator (the “Coordinator”) and the Emergency Preparedness Coordinator Administrative Committee (the “Committee”). The purpose of the Committee is to provide local coordination of the Program before, during, and after an Emergency or Outage. The Committee shall meet as frequently as necessary, but at least quarterly, to address Program issues and review emergency preparedness and response procedures. The Committee will be made up of at least five (5) representatives selected from among the Member Utilities. The Committee members shall work with the

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Coordinator to plan and coordinate emergency planning and response activities for the Program, and shall ensure that all Member Utilities are informed of such activities and have the opportunity to participate in all related planning and training activities.

ARTICLE IV.

PROCEDURES

A. In coordination with the Committee, emergency management and public health systems of the state, the Committee and Coordinator shall develop operational and planning procedures for the Program. These procedures shall be consistent with the Standardized Emergency Management System (SEMS), the National Incident Management System (NIMS) and this Agreement. These procedures shall be reviewed at least annually and updated as needed by the Committee and Coordinator.

B. Requests for emergency assistance or assistance with any Outage under this Agreement

shall be directed to the appropriate Authorized Official(s) from the list of Members.

ARTICLE V.

REQUESTS FOR ASSISTANCE In general, assistance will be in the form of resources, such as equipment, supplemental water supplies, other supplies, and personnel. Assistance shall be given only when a Responding Member determines that its own needs can be met while rendering assistance. The execution of this Agreement shall not create any duty to respond on the part of any party hereto. A potential Responding Member shall not be held liable for failing to provide assistance. A potential Responding Member has the absolute discretion to decline to provide any requested assistance. A. Responsibility- Members shall identify an Authorized Official and alternates; provide

contact information including 24-hour access and maintain resource information that may be available from the utility for mutual aid and assistance response. Such contact information shall be updated annually or when changes occur, and be promptly provided to the Coordinator.

B. Member Request- In the event of an Emergency or Outage (planned or unplanned), a

Member’s Authorized Official may request mutual aid and assistance from a participating Member. Requests for assistance can be made orally or in writing. When made orally, the request for personnel, equipment, supplemental water supplies and other supplies shall be prepared in writing as soon as practicable. Requests for assistance shall be directed to the Authorized Official of the participating Member. Specific protocols for requesting aid shall be provided in the required procedures to be established by the Committee pursuant to Article IV hereof.

C. Response to a Request for Assistance – Members are not obligated to respond to a

Requesting Member’s request. After a Member receives a request for assistance, that Member’s Authorized Official evaluates whether or not to respond, whether resources are available to respond, or if other circumstances would hinder response. Following the evaluation, that Member’s Authorized Representative shall inform, as soon as possible, the Requesting Member whether that Member will respond. If the Member is willing and able to

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provide assistance, the Member shall inform the Requesting Member about the type of available resources and the approximate arrival time of such assistance. If a Member determines it cannot respond to a request for assistance, that Member shall not be responsible for any consequences associated with its failure to respond.

D. Discretion of Responding Member’s Authorized Official – Execution of this Agreement

does not create any duty for a Member to respond to a request for assistance. When a Member receives a request for assistance, the Authorized Official shall have sole and absolute discretion as to whether or not to respond, or the availability of resources to be used in such response. An Authorized Member’s decisions on the availability of resources shall be final.

ARTICLE VI.

RESPONSE COORDINATION When providing assistance under this Agreement, the Requesting Member and Responding Member shall be organized and shall function under the Standard Emergency Management System and National Incident Management System protocols and procedures. A. Personnel- Responding Member retains the right to identify the specific employees to be

provided to a Requesting Member and the resources that are available. B. Control – While employees so provided may be under the supervision of the Responding Member, the Responding Member’s employees come under the direction and

control of the Requesting Member, consistent with the NIMS Incident Command System to address the needs identified by the Requesting Member. The Requesting Member’s Authorized Official shall coordinate response activities with the designated supervisor of the Responding Member(s). Whenever practical, Responding Member personnel must be self-sufficient for up to 72 hours. The Responding Member’s designated supervisor(s) must keep accurate records of work performed by Responding Member’s personnel during the specified Period of Assistance.

C. Food and Shelter – When possible, the Requesting Member shall supply reasonable food and shelter for Responding Member personnel. If the Requesting Member is unable to provide food and shelter for Responding Member personnel, the Responding Member’s designated supervisor is authorized to secure the resources necessary to meet the needs of its personnel. Except as provided below, the cost for such resources must not exceed the state per diem rates for that area. To the extent food and shelter costs exceed the state per diem rates for the area, the Responding Member must demonstrate that the additional costs were reasonable and necessary under the circumstances. Unless otherwise agreed to in writing, the Requesting Member remains responsible for reimbursing the Responding Member for all reasonable and necessary costs associated with providing food and shelter, if such resources are not provided.

D. Communication – The Requesting Member shall provide Responding Member personnel

with radio equipment as available, or radio frequency information to program existing radios, in order to facilitate communications with local responders and utility personnel.

E. Status - Unless otherwise provided by law, the Responding Member’s officers and

employees retain the same privileges, immunities, rights, duties and benefits as provided in

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their respective jurisdictions; and shall remain officers and employees, as applicable, of the Responding Member.

F. Licenses and Permits – To the extent permitted by law, Responding Member personnel

that hold licenses, certificates, or permits evidencing professional, mechanical, or other skills shall be allowed to carry out activities and tasks relevant and related to their respective credentials during the specified Period of Assistance.

G. Right to Withdraw Resources - The Responding Member’s Authorized Official retains the

right to withdraw some or all of its resources at any time for any reason in the Responding Member’s sole and absolute discretion. Notice of intention to withdraw must be communicated to the Requesting Member’s Authorized Official as soon as is practicable under the circumstances.

ARTICLE VII. COST- REIMBURSEMENT

Unless otherwise mutually agreed in whole or in part by both parties, the Requesting Member shall reimburse the Responding Member for each of the following categories of costs incurred while providing aid and assistance during the specified Period of Assistance. A. Personnel – Responding Member(s) will make such employees as are willing to participate

available to Requesting Member at Requesting Member’s expense equal to any Responding Member’s full cost, i.e., equal to the employee's applicable salary or hourly wage, plus fringe benefits and overhead, and consistent with Responding Member’s collective bargaining agreements, if applicable, or other conditions of employment. All costs incurred for work performed during the specified Period of Assistance will be included. The Requesting Member shall be responsible for all direct and indirect labor costs.

B. Equipment – Use of equipment, such as construction equipment, vehicles, tools, pumps

and generators, shall be at a Responding Member's current equipment rate and subject to the following conditions: The Requesting Member shall reimburse the Responding Member for the use of equipment during the specified Period of Assistance, including, but not limited to, reasonable rental rates, all fuel, lubrication, maintenance, transportation, and loading/unloading of loaned equipment. All equipment shall be returned to the Responding Member as soon as is practicable and reasonable under the circumstances. (a) At the option of Responding Member, equipment may be provided with an operator.

(b) Equipment shall be returned to Responding Member within 24 hours after receipt of an oral or written request for return.

(c) During the Period of Assistance, Requesting Member shall, at its own expense, supply all fuel, lubrication and maintenance for furnished equipment; provided that Requesting Member shall obtain Responding Member’s consent before performing any such maintenance. (d) Responding Member’s cost related to the transportation, handling and loading/unloading of equipment shall be chargeable to Requesting Member.

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(e) In the event equipment is damaged while being dispatched to Requesting Member, or while in the custody and use of Requesting Member, Requesting Member shall reimburse Responding Member for the reasonable cost of repairing said damaged equipment. If the equipment cannot be repaired, then Requesting Member shall reimburse Responding Member for the cost of replacing such equipment with equipment that is of at least equal capability as determined by the Responding Member. If Responding Member must lease a piece of equipment while Requesting Member equipment is being repaired or replaced, Requesting Member shall reimburse Responding Member for such lease costs.

C. Materials and Supplies – The Requesting Member must reimburse the Responding

Member in kind or at actual replacement cost, plus handling charges, for use of expendable or non-returnable supplies. The Responding Member must not charge direct fees or rental charges to the Requesting Member for other supplies and reusable items that are returned to the Responding Member in a clean, damage-free condition. Reusable supplies that are returned to the Responding Member with damage must be treated as expendable supplies for purposes of cost reimbursement.

D. Supplemental Water Supplies – The Responding Member will provide the Requesting

Member with a bill showing the amount of water delivered to the Requesting Member. Water will be billed at the highest rate incurred for imported water by the Responding Member, or as the Responding Member may otherwise agree.

E. Payment Period – The Responding Member must provide an itemized bill to the

Requesting Member for all expenses incurred by the Responding Member while providing assistance under this Agreement. The Responding Member must send the itemized bill not later than ninety (90) days following the end of the Period of Assistance. The Responding Member may request additional periods of time within which to submit the itemized bill, and Requesting Member shall not unreasonably withhold consent to such request. The Requesting Member must pay the bill within 60 days following the billing date. The Requesting Member may request additional periods of time within which to pay the itemized bill and Responding Member shall not unreasonably withhold consent to such request, provided, however, that all payment shall occur not later than one-year after the date a final itemized bill is submitted to the Requesting Member.

E. Records - Each Requesting Member and its duly authorized representatives shall have

access to a Responding Member’s books, documents, notes, reports, papers and records which are directly pertinent to this Agreement for the purposes of reviewing the accuracy of a cost bill or making a financial, maintenance or regulatory audit. To the extent it deems necessary, each Responding Member and its duly authorized representatives shall have access to a Requesting Member’s books, documents, notes, reports, papers and records which are directly pertinent to this Agreement. Such records shall be maintained for at least three (3) years or longer where required by law and as needed for federal reimbursement practices.

ARTICLE VIII. ARBITRATION

If any controversy or claim arises out of, or relates to, the Agreement, including, but not limited to an alleged breach of the Agreement, the disputing Members shall first attempt to resolve the dispute by negotiation, followed by mediation and finally shall be settled by arbitration in

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accordance with the Rules of the American Arbitration Association. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction.

ARTICLE IX. REQUESTING MEMBER’S DUTY TO INDEMNIFY

Pursuant to Government Code Section 895.4, and subject to Article X, Requesting Member shall assume the defense of, fully indemnify and hold harmless Responding Member, its Directors, officers, employees and agents, from all claims, loss, damage, injury and liability of every kind, nature and description, directly or indirectly arising from the Requesting Member’s work hereunder, including, but not limited to, negligent or wrongful use of equipment, supplies or personnel provided to Requesting Member or faulty workmanship or other negligent acts, errors or omissions by a Responding Member, or by personnel provided to Requesting Member, from the time assistance is requested and rendered until the assistance is returned to Responding Member’s control, portal to portal.

ARTICLE X. SIGNATORY INDEMNIFICATION

In the event of a liability, claim, demand, action or proceeding, of whatever kind or nature arising out of the rendering of assistance through this Agreement, the parties involved in rendering or receiving assistance agree to indemnify and hold harmless all Members whose only involvement is the execution and approval of this Agreement, in the transaction or occurrence which is the subject of such claim, action, demand or other proceeding. Such indemnification shall include indemnity for all claims, demands, liability, damages and costs, including reasonable attorneys' fees and other costs of defense, for injury, property damage and workers compensation.

ARTICLE XI. WORKER’S COMPENSATION CLAIMS

The Responding Member is responsible for providing worker’s compensation benefits and administering worker’s compensation for its employees. The Requesting Member is responsible for providing worker’s compensation benefits and administering worker’s compensation for its employees.

ARTICLE XII. NOTICE

Each party hereto shall give to the others prompt and timely written notice of any claim made or any suit instituted coming to its knowledge, which in any way, directly or indirectly, contingently or otherwise, affects or might affect them, and each Member shall have the right to participate in the defense of the same, as it considers necessary to protect its own interests.

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ARTICLE XIII. INSURANCE

Members of this Agreement shall maintain an insurance policy or maintain a self insurance program that covers activities that it may undertake by virtue of membership in the Program, including, but not limited to, worker’s compensation and commercial general liability insurance, and insurance on property, vehicles and equipment.

ARTICLE XIV.

CONFIDENTIAL INFORMATION To the extent allowed by law, any Member or Associate Member shall maintain in the strictest confidence and shall take all reasonable steps necessary to prevent the disclosure of any Confidential Information provided to it by another Member pursuant to this Agreement. If any Member, Associate Member, or third party requests or demands, by subpoena or otherwise, that a Member or Associate Member disclose any Confidential Information provided to it under this Agreement, the Member or Associate Member shall immediately notify the owner of the Confidential Information and shall take all reasonable steps necessary to prevent the disclosure of any Confidential Information by asserting all applicable rights and privileges with respect to such information and shall cooperate fully in any judicial or administrative proceeding relating thereto.

ARTICLE XV.

EFFECTIVE DATE This Agreement shall take effect for a new party immediately upon its execution by said party.

ARTICLE XVI. WITHDRAWAL

Any party may terminate its participation in this Agreement by written notice to the Coordinator. Withdrawal takes effect 60 days after the appropriate official receives notice. Withdrawal from this Agreement shall in no way affect a Requesting Member’s duty to reimburse a Responding Member for cost incurred during a Period of Assistance, which duty shall survive such withdrawal.

ARTICLE XVII. MODIFICATION

No provision of this Agreement may be modified, altered or rescinded by individual parties to the Agreement. Modifications to this Agreement require a simple majority vote of Members then participating under this Agreement. The Committee will notify all parties of modifications to this Agreement in writing and those modifications shall be effective upon 60 days’ written notice to the parties.

ARTICLE XVIII. SEVERABILITY

If any term or provision of this Agreement is declared by a court of competent jurisdiction to be Illegal or in conflict with any law, the validity of the remaining terms and provisions shall not be

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affected, and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular term or provision held to be invalid.

ARTICLE XIX. PRIOR AGREEMENTS

This Agreement supersedes all prior Agreements between Members to the extent that such prior Agreements are inconsistent with this Agreement.

ARTICLE XX. PROHIBITION ON THIRD PARTIES AND ASSIGNMENT OF RIGHTS/DUTIES

This Agreement is for the sole benefit of the Members and no person or entity shall have any rights under this Agreement as a third-party beneficiary. Assignments of benefits and delegations of duties created by this Agreement are prohibited and any such attempted assignment or delegation shall have no effect.

ARTICLE XXI. TORT CLAIMS

This Agreement in no way abrogates or waives any immunity or defense available under California law.

ARTICLE XXII.

INTRASTATE AND INTERSTATE MUTUAL AID AND ASSISTANCE PROGRAMS To the extent practicable, Members retain the right to participate in mutual aid and assistance activities conducted under the State of California Intrastate WARN Mutual Aid and Assistance Program and the Interstate Emergency Management Assistance Compact (EMAC) and similar programs.

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Now, therefore, in consideration of the covenants and obligations set forth in this Agreement, the Water Utility listed here manifests its intent to be a Member Utility in the Program by executing this Agreement on this ___________ day of __________ 2018. Member: By: By: Title: Title Please Print Name Please Print Name

Approved as to form and legality By: Attorney for Public or Private Utility Please Print Name

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WVWD – Staff Report TO: Board of Directors FROM: General Manager DATE: October 15, 2018 SUBJECT: Authorize the General Manager to Execute the 2017 Proposition 1

Sustainable Groundwater Planning Grant

Action/Discussion Fiscal Impact Resolution Information Only Recommendation Request the Board of Directors authorize the General Manager to execute the 2017 Proposition 1 Sustainable Groundwater Planning Grant. (attached) Background Information In November 2017, the Walnut Valley Water District (District), as lead agency for the Spadra Basin GSA, submitted a grant proposal for the development of a Groundwater Sustainability Plan (GSP) for the Spadra Basin. The grant proposal included a request of $338,500, which represents 50% of the total project cost of $677,000 to develop the GSP. The project consists of three phases as outlined below:

1. Establish a model to accurately portray the geohydrology of the Spadra Basin, 2. Apply the model to optimize groundwater production in the basin and determine

outcomes, and 3. Develop the Spadra Basin Groundwater Sustainability Plan.

In May 2018, the District was notified by the Department of Water Resources (DWR) that its proposal had been approved for funding in the amount of $338,500, conditioned upon the execution of a Grant Agreement between DWR and the District. Since that time, District staff has worked with DWR in drafting the grant agreement (attached) and is working through one final issue, currently under review by DWR’s legal counsel. Based on discussions with DWR, it desires to have the agreement finalized and executed before the end of October 2018. Staff is recommending that the Board of Directors authorize Erik Hitchman to execute the agreement once the appropriate changes have been made to the satisfaction of staff and legal counsel. This issue was discussed at the October 1, 2018 Spadra Basin GSA Executive Committee meeting. The Executive Committee recommends that Erik Hitchman be authorized to execute the grant agreement. In addition, the District will be participating in discussions concerning how the balance of GSP development costs (which total $338,500) should be allocated among the member agencies and other stakeholders. Attachments as noted

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GRANT AGREEMENT BETWEEN THE STATE OF CALIFORNIA (DEPARTMENT OF WATER RESOURCES) AND

WALNUT VALLEY WATER DISTRICT AGREEMENT NUMBER <46000XXXXX>

2017 PROPOSITION 1 SUSTAINABLE GROUNDWATER PLANNING (SGWP) GRANT THIS GRANT AGREEMENT is entered into by and between the Department of Water Resources of the State of California, herein referred to as the "State" or “DWR” and the Walnut Valley Water District, a public agency in the State of California, duly organized, existing, and acting pursuant to the laws thereof, herein referred to as the "Grantee," which parties do hereby agree as follows: 1) PURPOSE. State shall provide funding from the Water Quality, Supply, and Infrastructure Improvement Act

of 2014 (Proposition 1) to assist the Grantee in financing the planning and/or selected project activities (Project) that will improve sustainable groundwater management, pursuant to Water Code Section 79700 et seq. The provision of State funds pursuant to this Agreement shall not be construed or interpreted to mean that the Groundwater Sustainability Plan (GSP), or any components of the GSP, implemented in accordance with the Work Plan as set forth in Exhibit A, will be: adopted by the applicable Groundwater Sustainability Agency (GSA); obtain the necessary desirable results of Sustainable Management Criteria; or, meet all of the evaluation and assessment criteria when submitted to the Department of Water Resources as required by the Sustainable Groundwater Management Act and implementing regulations.

2) TERM OF GRANT AGREEMENT. The term of this Grant Agreement begins on the date this Grant Agreement is executed by the State, through final payment plus three (3) years unless otherwise terminated or amended as provided in this Grant Agreement. However, all work shall be completed in accordance with the Schedule as set forth in Exhibit C.

3) GRANT AMOUNT. The maximum amount payable by the State under this Grant Agreement shall not exceed $338,500.

4) GRANTEE COST SHARE. Grantee is required to provide a Local Cost Share (non-state funds) of not less than 50 percent of the Total Project Cost unless a Disadvantaged Community cost share waiver (DAC Cost Share Waiver), Economically Distressed Areas (EDA Cost Share Waiver), or Severely Disadvantaged Community (SDAC Cost Share Waiver) is granted. Grantee agrees to provide a Local Cost Share (non-state funds) for the amount as documented in Exhibit B Budget. Local Cost Share may include Eligible Project Costs directly related to Exhibit A incurred after January 1, 2015.

5) BASIC CONDITIONS. State shall have no obligation to disburse money for a project under this Grant Agreement until Grantee has satisfied the following conditions (if applicable):

1. Prior to execution of this Grant Agreement, selected applicants (Groundwater Sustainability Agency) for GSP Development projects must submit evidence of a notification to the public and DWR prior to initiating development of a GSP in compliance with California Code of Regulations, title 23, Section 350 et seq. (GSP Regulations) and Water Code Section 10727.8. [Recommended Change: As drafted, this provision requires the mandated notice concerning development of the Groundwater Sustainability Plan to have been given prior to execution of the Grant Agreement. However, Spadra Basin GSA is not close to being in a position to issue that notice and thus it will not have done so before the Grant Agreement is executed. I suggested replacing Section 5(1) with the following: “Prior to commencing development of the GSP, Grantee shall comply with the public notification requirements set forth in the California Code of Regulations, title 23, Section 350 et seq. (GSP Regulations) and Water Code Section 10727.8.”]

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Grant Agreement No. 46000XXXX

Page 2 of 37

2. Grantee must demonstrate compliance with all relevant eligibility criteria as set forth on pages 7 and 8 of the 2015 Grant Program Guidelines for the SGWP Grant Program.

3. For the term of this Grant Agreement, Grantee submits timely reports and all other deliverables as required by Paragraph 16, “Submission of Reports” and Exhibit A.

4. Prior to the commencement of construction or implementation activities, if applicable, Grantee shall submit the following to the State:

(a) Final plans and specifications certified, signed, and stamped by a California Registered Civil

Engineer as to compliance for each approved project as listed in Exhibit A of this Grant Agreement.

b. Work that is subject to the California Environmental Quality Act (CEQA) and or environmental permitting shall not proceed under this Grant Agreement until the following actions are performed: (1) Grantee submits to the State all applicable environmental permits as indicated on the

Environmental Information Form to the State, (2) Documents that satisfy the CEQA process are received by the State, (3) State has completed its CEQA compliance review as a Responsible Agency, and (4) Grantee receives written concurrence from the State of Lead Agency’s CEQA document(s) and

State notice of verification of environmental permit submittal. State’s concurrence of Lead Agency’s CEQA documents is fully discretionary and shall constitute a condition precedent to any work (i.e., construction or implementation activities) for which it is required. Once CEQA documentation has been completed, State will consider the environmental documents and decide whether to continue to fund the project or to require changes, alterations or other mitigation. Grantee must also demonstrate that it has complied with all applicable requirements of the National Environmental Policy Act by submitting copies of any environmental documents, including environmental impact statements, Finding of No Significant Impact, mitigation monitoring programs, and environmental permits as may be required prior to beginning construction/implementation.

c. A monitoring plan as required by Paragraph 18, “Monitoring Plan Requirements”, if applicable for Implementation Components/Project(s).

6) DISBURSEMENT OF FUNDS. State will disburse to Grantee the amount approved, subject to the availability of funds through normal State processes. Notwithstanding any other provision of this Grant Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any rebates to the federal government, or any loss of tax-free status on state bonds, pursuant to any federal statute or regulation. Any and all money disbursed to Grantee under this Grant Agreement shall be deposited in a non-interest bearing account and shall be used solely to pay Eligible Project Costs.

7) ELIGIBLE PROJECT COST. Grantee shall apply State funds received only to eligible Project Costs in accordance with applicable provisions of the law and Exhibit B. Eligible Project Costs include the reasonable costs of studies, engineering, design, land and easement acquisition, legal fees, preparation of environmental documentation, environmental mitigations, monitoring, project construction, and/or any other scope of work efforts as described in Exhibit A. Reimbursable administrative expenses are the necessary costs incidental but directly related to the Project included in this Agreement. Work performed on the Project after July 1, 2017, but before April 30, 2022 (end date), shall be eligible for reimbursement. Costs that are not eligible for reimbursement with State funds cannot be counted as Cost Share. Costs that are not eligible for reimbursement include, but are not limited to, the following items: 1. Costs, other than those noted above, incurred prior to the award date of this Grant.

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Page 3 of 37

2. Costs for preparing and filing a grant application belonging to another solicitation. 3. Operation and maintenance costs, including post construction performance and monitoring costs. 4. Purchase of equipment that is not an integral part of a project. 5. Establishing a reserve fund. 6. Purchase of water supply. 7. Monitoring and assessment costs for efforts required after project construction is complete. 8. Replacement of existing funding sources for ongoing programs. 9. Travel and per diem costs. 10. Support of existing agency requirements and mandates (e.g., punitive regulatory agency requirement). 11. Purchase of land in excess of the minimum required acreage necessary to operate as an integral part

of a project, as set forth and detailed by engineering and feasibility studies, or land purchased prior to the execution date of this Grant Agreement.

12. Overhead and indirect costs. “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the funded project (i.e., costs that are not directly related to the funded project). Examples of Indirect Costs include, but are not limited to: central service costs; general administration of the Grantee; non-project-specific accounting and personnel services performed within the Grantee’s organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-project-specific facilities; tuition and conference fees; and, generic overhead or markup. This prohibition applies to the Grantee and any subcontract or sub-agreement for work on the Project that will be reimbursed pursuant to this Agreement.

8) METHOD OF PAYMENT FOR REIMBURSEMENT. After the disbursement requirements in Paragraph 5 “Basic Conditions” are met, State will disburse the whole or portions of State funding to Grantee, following receipt from Grantee via U.S. mail or Express mail delivery of a “wet signature” invoice for costs incurred, including Cost Share, and timely Progress Reports as required by Paragraph 16, “Submission of Reports.” Payment will be made no more frequently than monthly, in arrears, upon receipt of an invoice bearing the Grant Agreement number. State will notify Grantee, in a timely manner, whenever, upon review of an Invoice, State determines that any portion or portions of the costs claimed are not eligible costs or is not supported by documentation or receipts acceptable to State. Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to State to cure such deficiency(ies). If Grantee fails to submit adequate documentation curing the deficiency(ies), State will adjust the pending invoice by the amount of ineligible or unapproved costs. Invoices submitted by Grantee shall include the following information: 1. Costs incurred for work performed in implementing the project during the period identified in the particular

invoice. 2. Costs incurred for any interests in real property (land or easements) that have been necessarily

acquired for a project during the period identified in the particular invoice for the implementation of a project.

3. Invoices shall be submitted on forms provided by State and shall meet the following format requirements:

a. Invoices must contain the date of the invoice, the time period covered by the invoice, and the total amount due.

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b. Invoices must be itemized based on the categories (i.e., tasks) specified in the Exhibit B. The amount claimed for salaries/wages/consultant fees must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = the total amount claimed).

c. One set of sufficient evidence (i.e., receipts, copies of checks, time sheets) must be provided for all costs included in the invoice.

d. Each invoice shall clearly delineate those costs claimed for reimbursement from the State’s funding amount, as depicted in Paragraph 3, “Grant Amount” and those costs that represent Grantee’s costs, as applicable, in Paragraph 4, “Grantee Cost Share.”

e. Original signature and date (in ink) of Grantee’s Project Representative. Submit the original “wet signature” copy of the invoice form to the address listed in Paragraph 23, “Project Representative.”

All invoices submitted shall be accurate and signed under penalty of perjury. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Grantee shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs). Any eligible costs for which the Grantee is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of grant funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder plus interest. Additionally, the State may request an audit pursuant to Exhibit D and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. (Civ. Code, §§ 1572-1573; Pen. Code, §§ 470, 489-490.)

9) ADVANCED PAYMENT. Water Code Section 10551 authorizes advance payment by the State for projects included and implemented in an applicable integrated regional water management plan, and when the project proponent is a nonprofit organization; a DAC; or the project benefits a DAC. If the project is awarded less than $1,000,000 in grant funds, the project proponent may receive an advanced payment of up to 50% of the grant award; the remaining 50% of the grant award will be reimbursed in arrears. Within ninety (90) calendar days of execution of the Grant Agreement, the Grantee may provide the State an Advanced Payment Request. Advanced Payment Requests received ninety-one (91) calendar days after execution of this Agreement, or later, will not be eligible to receive advance payment. The Advanced Payment Request must contain the following: 1. Documentation demonstrating that each Local Project Sponsor (if different from Grantee, as listed in

Exhibit I) was notified about their eligibility to receive an advanced payment and a response from the Local Project Sponsor stating whether it wishes to receive the advanced payment or not.

2. If the Local Project Sponsor is requesting the advanced payment, the request must include: a. A funding plan which shows how the advanced funds will be expended within 18 months of this

Grant Agreement’s execution (i.e., for what, how much, and when) b. A discussion of the Local Project Sponsor’s financial capacity to complete the project once the

advance funds have been expended, and include an “Audited Financial Statement Summary Form” specific to the DAC.

3. If a Local Project Sponsor is requesting advanced payment, Grantee shall also submit a single Advance Payment Form Invoice, containing the request for each qualified project, to the State Project Manager with “wet signature” and date of Grantee’s Project Representative, as indicated in Paragraph 23, “Project Representative.” The Grantee shall be responsible for the timely distribution of the advanced funds to the respective Local Project Sponsor(s). Within sixty (60) calendar days of receiving the Advanced Payment Form Invoice and subject to the availability of funds, State will authorize payment of the advanced funds sought of up to 50% of the grant award for the qualified project(s). The Advanced

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Payment Form Invoice shall be submitted on forms provided by State and shall meet the following format requirements: a. Invoice must contain the date of the invoice, the time period covered by the invoice, and the total

amount due. b. Invoice must be itemized based on the categories (i.e., tasks) specified in Exhibit B. c. State Project Manager will notify Grantee, in a timely manner, when, upon review of an Advance

Payment Form Invoice, the State determines that any portion or portions of the costs claimed are not eligible costs. Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). After the distribution requirements in Paragraph 5, “Basic Conditions” are met, State will disburse the whole or portions of State funding to Grantee, following receipt from Grantee via US mail or Express mail delivery of a “wet signature” invoice for costs incurred, including Cost Share, and timely Progress Reports as required by Paragraph 16, “Submission of Reports.”

4. On a quarterly basis, the Grantee will submit an Accountability Report to State that demonstrates how actual expenditures compare with the scheduled budget. The Accountability Report shall include the following information: a. An itemization of how advanced funds have been expended to-date (Expenditure Summary),

including documentation that supports the expenditures (e.g., contractor invoices, receipts, personnel hours, etc.). Invoices must be itemized based on the budget categories (i.e., tasks) specified in Exhibit B.

b. A funding plan which shows how the remaining advanced funds will be expended. c. Documentation that the funds were placed in a non-interest bearing account, including the dates of

deposits and withdrawals from that account. d. State Project Manager will notify Grantee, in a timely manner, when, upon review of the Expenditure

Summary, the State determines that any portion of the expenditures claimed are not eligible costs. Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). If costs are not consistent with the tasks in Exhibit B, the State will reject the claim and remove them from the Expenditure Summary.

5. Once Grantee has expended all advanced funds, then the method of payment will revert to the reimbursement process specified in Paragraph 8, “Method of Payment for Reimbursement.”, and any remaining requirements of Paragraph 5, “Basic Conditions.”

10) REPAYMENT OF ADVANCES. State may demand repayment from Grantee of all or any portion of the advanced State funding along with interest at the California general obligation bond interest rate at the time the State notifies the Grantee, as directed by State, and take any other action that it deems necessary to protect its interests for the following conditions: 1. A project is not being implemented in accordance with the provisions of the Grant Agreement. 2. Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if

Grantee does not remedy any such failure to State’s satisfaction. 3. Repayment amounts may also include:

a. Advance funds which have not been expended within 18 months of the Grant Agreement’s execution.

b. Actual costs incurred are not consistent with the activities presented in Exhibit A, not supported, or are ineligible.

c. At the completion of the project, the funds have not been expended.

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For conditions 10) 3.a. and 10) 3.b., repayment may consist of deducting the amount from future reimbursement invoices. State may consider Grantee’s refusal to repay the requested advanced amount a substantial breach of this Grant Agreement subject to the default provisions in Paragraph 12, “Default Provisions.” If State notifies Grantee of its decision to demand repayment or withhold the entire funding amount from Grantee pursuant to this paragraph, this Grant Agreement shall terminate upon receipt of such notice by Grantee and the State shall no longer be required to provide funds under this Grant Agreement and the Grant Agreement shall no longer be binding on either part.

11) WITHHOLDING OF DISBURSEMENTS BY STATE. If State determines that a project is not being

implemented in accordance with the provisions of this Grant Agreement, or that Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if Grantee does not remedy any such failure to State’s satisfaction, State may withhold from Grantee all or any portion of the State funding and take any other action that it deems necessary to protect its interests. Where a portion of the State funding has been disbursed to the Grantee and State notifies Grantee of its decision not to release funds that have been withheld pursuant to Paragraph 13, “Continuing Eligibility,” the portion that has been disbursed shall thereafter be repaid immediately with interest at the California general obligation bond interest rate at the time the State notifies the Grantee, as directed by State. State may consider Grantee’s refusal to repay the requested disbursed amount a contract breach subject to the default provisions in Paragraph 12, “Default Provisions.” If State notifies Grantee of its decision to withhold the entire funding amount from Grantee pursuant to this paragraph, this Grant Agreement shall terminate upon receipt of such notice by Grantee and the State shall no longer be required to provide funds under this Grant Agreement and the Grant Agreement shall no longer be binding on either party.

12) DEFAULT PROVISIONS. Grantee will be in default under this Grant Agreement if any of the following occur: 1. Substantial breaches of this Grant Agreement, or any supplement or amendment to it, or any other

agreement between Grantee and State evidencing or securing Grantee’s obligations; 2. Making any false warranty, representation, or statement with respect to this Grant Agreement or the

application filed to obtain this Grant Agreement; 3. Failure to operate or maintain project in accordance with this Grant Agreement. 4. Failure to make any remittance required by this Grant Agreement. 5. Failure to comply with Labor Compliance Plan requirements. 6. Failure to submit timely progress reports. 7. Failure to routinely invoice State. 8. Failure to meet any of the requirements set forth in Paragraph 13, “Continuing Eligibility.” Should an event of default occur, State shall provide a notice of default to the Grantee and shall give Grantee at least ten (10) calendar days to cure the default from the date the notice is sent via first-class mail to the Grantee. If the Grantee fails to cure the default within the time prescribed by the State, State may do any of the following: 9. Declare the funding be immediately repaid, with interest, which shall be equal to State of California

general obligation bond interest rate in effect at the time of the default. 10. Terminate any obligation to make future payments to Grantee. 11. Terminate the Grant Agreement. 12. Take any other action that it deems necessary to protect its interests.

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In the event State finds it necessary to enforce this provision of this Grant Agreement in the manner provided by law, Grantee agrees to pay all costs incurred by State including, but not limited to, reasonable attorneys' fees, legal expenses, and costs.

13) CONTINUING ELIGIBILITY. Grantee must meet the following ongoing requirement(s) to remain eligible to receive State funds: 1. An urban water supplier that receives grant funds pursuant to this Grant Agreement must maintain

compliance with the Urban Water Management Planning Act (UWMP; Wat. Code, § 10610 et seq.) and Sustainable Water Use and Demand Reduction (Wat. Code, § 10608 et seq.) by doing the following: a. Have submitted their 2015 UWMP and had it deemed consistent by DWR. If the 2015 UWMP has

not been submitted to DWR funding disbursements to the urban water supplier will cease until the 2015 UWMP is submitted. If the 2015 UWMP is deemed inconsistent by DWR, the urban water supplier will be ineligible to receive funding disbursements until the inconsistencies are addressed and DWR deems the UWMP consistent. For more information, visit the following website: https://www.water.ca.gov/Programs/Water-Use-And-Efficiency/Urban-Water-Use-Efficiency/Urban-Water-Management-Plans.

b. All urban water suppliers must submit documentation that demonstrates they are meeting the 2015 interim gallons per capita per day (GPCD) target. If not meeting the interim target, the Grantee must submit a schedule, financing plan, and budget for achieving the GPCD target, as required pursuant to Water Code Section 10608.24. Urban water suppliers that did not meet their 2015 interim GPCD target must also submit annual reports that include a schedule, financing plan, and budget for achieving the GPCD target by June 30 of each year.

2. An agricultural water supplier receiving grant funding must: a. Comply with Sustainable Water Use and Demand Reduction requirements outlined in Water Code

Section 10608, et seq. Submit to the State a schedule, financing plan, and budget for implementation of the efficient water management practices, required pursuant to Water Code Section 10608.48.

b. Have their Agricultural Water Management Plan (AWMP) deemed consistent by DWR. To maintain eligibility and continue funding disbursements, an agricultural water supply must have their 2015 AWMP identified on the State’s website. For more information, visit the following website: https://www.water.ca.gov/Work-With-Us/Grants-And-Loans/Agriculture-Water-Use-Efficiency.

3. Grantee diverting surface water must maintain compliance with diversion reporting requirements as outlined in Part 5.1 of Division 2 of the Water Code.

4. If applicable, Grantee must demonstrate compliance with the Groundwater Management Act set forth on pages 7 and 8 of the 2015 SGWP Grant Program Guidelines, dated October 2015.

5. Grantees that have been designated as monitoring entities under the California Statewide Groundwater Elevation Monitoring (CASGEM) Program must maintain reporting compliance, as required by Water Code Section 10932 and the CASGEM Program.

14) PERMITS, LICENSES, APPROVALS, AND LEGAL OBLIGATIONS. Grantee shall be responsible for obtaining any and all permits, licenses, and approvals required for performing any work under this Grant Agreement, including those necessary to perform design, construction, or operation and maintenance of the Project(s). Grantee shall be responsible for observing and complying with any applicable federal, state, and local laws, rules or regulations affecting any such work, specifically those including, but not limited to, environmental, procurement, and safety laws, rules, regulations, and ordinances. Grantee shall provide copies of permits and approvals to State.

15) RELATIONSHIP OF PARTIES. If applicable, Grantee is solely responsible for design, construction, and operation and maintenance of projects within the work plan. Review or approval of plans, specifications, bid

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documents, or other construction documents by State is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee under this Grant Agreement.

16) SUBMISSION OF REPORTS. The submittal and approval of all reports is a requirement for the successful completion of this Grant Agreement. Reports shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to submittal to State. All reports shall be submitted to the State’s Project Manager, and shall be submitted via Department of Water Resources (DWR) “Grant Review and Tracking System” (GRanTS). If requested, Grantee shall promptly provide any additional information deemed necessary by State for the approval of reports. Reports shall be presented in the formats described in the applicable portion of Exhibit F. The timely submittal of reports is a requirement for initial and continued disbursement of State funds. Submittal and subsequent approval by the State, of a Project Completion Report is a requirement for the release of any funds retained for such project. 1. Progress Reports: Grantee shall submit Progress Reports to meet the State’s requirement for

disbursement of funds. Progress Reports shall be uploaded via GRanTS, and the State’s Project Manager notified of upload. Progress Reports shall, in part, provide a brief description of the work performed, Grantees activities, milestones achieved, any accomplishments and any problems encountered in the performance of the work under this Grant Agreement during the reporting period. The first Progress Report should be submitted to the State no later than four (4) months after the execution of the agreement, with future reports then due on successive three-month increments based on the invoicing schedule and this date.

2. Groundwater Sustainability Plan: Grantee shall submit a Final Groundwater Sustainability Plan (GSP) to DWR by the date as specified per SGMA. The GSP shall be formatted, drafted, prepared, and completed as required by the GSP Regulations, and in accordance with any other regulations or requirements that are stipulated through SGMA.

3. Coordination Agreement: Grantee shall provide State a copy of the executed Coordination Agreement, and any and all supporting documentation. This condition is only required in basins where GSAs develop multiple GSPs pursuant to Water Code Section 10727(b)(3). Refer to the GSP Regulations for necessary details and requirements to prepare and submit a Coordination Agreement.

4. Accountability Report: Grantee shall prepare and submit to State an Accountability Report on a quarterly basis if the Grantee received an Advanced Payment, consistent with the provisions in Paragraph 9, “Advanced Payment.”

5. Completion Report: Grantee shall prepare and submit to State a separate Completion Report for each project or component included in Exhibit A. Grantee shall submit a Completion Report within ninety (90) calendar days of project/component completion. Each Completion Report shall include, in part, a description of actual work done, any changes or amendments to each project, and a final schedule showing actual progress versus planned progress, copies of any final documents or reports generated or utilized during a project. The Completion Report shall also include, if applicable for Implementation Project(s), certification of final project by a registered civil engineer, consistent with Exhibit D. A “Certification of Project Completion” form will be provided by the State.

6. Grant Completion Report: Upon completion of the Project included in Exhibit A, Grantee shall submit to State a Grant Completion Report. The Grant Completion Report shall be submitted within ninety (90) calendar days of submitting the Completion Report for the final component or project to be completed under this Grant Agreement. The Grant Completion Report shall include reimbursement status, a brief description of each component completed, and how those components will further the goals of the GSP and sustainable groundwater. Retention for the last component, or project, to be completed as part of this Grant Agreement will not be disbursed until the Grant Completion Report is submitted to be approved by the State.

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7. Post-Performance Reports: Grantee shall prepare and submit to State Post-Performance Reports on each applicable implementation type Project(s). Post-Performance Reports shall be submitted to State within ninety (90) calendar days after the first operational year of a project has elapsed. This record keeping and reporting process shall be repeated annually for a total of three (3) years after the project begins operation.

17) OPERATION AND MAINTENANCE OF PROJECT. For the useful life of construction and implementation projects (pertinent to Implementation Projects) and in consideration of the funding made by State, Grantee agrees to ensure or cause to be performed the commencement and continued operation of the project, and shall ensure or cause the project to be operated in an efficient and economical manner; shall ensure all repairs, renewals, and replacements necessary to the efficient operation of the same are provided; and shall ensure or cause the same to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. The State shall not be liable for any cost of such maintenance, management, or operation. Grantee or their successors may, with the written approval of State, transfer this responsibility to use, manage, and maintain the property. For purposes of this Grant Agreement, “useful life” means period during which an asset, property, or activity is expected to be usable for the purpose it was acquired or implemented; “operation costs” include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses, and “maintenance costs” include ordinary repairs and replacements of a recurring nature necessary for capital assets and basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Refusal of Grantee to ensure operation and maintenance of the projects in accordance with this provision may, at the option of State, be considered a breach of this Grant Agreement and may be treated as default under Paragraph 12, “Default Provisions.”

18) MONITORING PLAN REQUIREMENTS. Pertinent to Implementation Projects or Components, a Monitoring Plan shall be submitted to the State prior to disbursement of State funds for construction or monitoring activities. The Monitoring Plan should incorporate items defined and listed in Exhibit K.

19) STATEWIDE MONITORING REQUIREMENTS. Grantee shall ensure that all groundwater projects and projects that include groundwater monitoring requirements are consistent with the Groundwater Quality Monitoring Act of 2001 (Wat. Code, § 10780 et seq.) and, where applicable, projects that affect water quality shall include a monitoring component that allows the integration of data into statewide monitoring efforts, including where applicable, the Surface Water Ambient Monitoring Program carried out by the State Water Resources Control Board. See Exhibit G for web links and information regarding other State monitoring and data reporting requirements.

20) NOTIFICATION OF STATE. Grantee shall promptly notify State, in writing, of the following items: 1. Events or proposed changes that could affect the scope, budget, or work performed under this Grant

Agreement. Grantee agrees that no substantial change in the scope of a project will be undertaken until written notice of the proposed change has been provided to State and State has given written approval for such change. Substantial changes generally include changes to the scope of work, schedule or term, and budget.

2. Any public or media event publicizing the accomplishments and/or results of this Grant Agreement and provide the opportunity for attendance and participation by State’s representatives. Grantee shall make such notification at least fourteen (14) calendar days prior to the event.

3. Applicable to Implementation Projects only, Final inspection of the completed work on a project by a Registered Professional (Civil Engineer, Engineering Geologist, or other State approved certified/license Professional), in accordance with Exhibit D. Grantee shall notify the State’s Project Manager of the inspection date at least 14 calendar days prior to the inspection in order to provide State the opportunity to participate in the inspection.

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21) NOTICES. Any notice, demand, request, consent, or approval that either party desires or is required to give to the other party under this Grant Agreement shall be in writing. Notices may be transmitted by any of the following means: 1. By delivery in person. 2. By certified U.S. mail, return receipt requested, postage prepaid. 3. By “overnight” delivery service; provided that next-business-day delivery is requested by the sender. 4. By electronic means. 5. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or

receipt). Notices sent by certified mail will be deemed effective given ten (10) calendar days after the date deposited with the U.S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent electronically will be effective on the date of transmission, which is documented in writing. Notices shall be sent to the addresses listed below. Either party may, by written notice to the other, designate a different address that shall be substituted for the one below.

22) PERFORMANCE EVALUATION. Upon completion of this Grant Agreement, Grantee’s performance will be evaluated by the State and a copy of the evaluation will be placed in the State file and a copy sent to the Grantee.

23) PROJECT REPRESENTATIVES. The Project Representatives during the term of this Grant Agreement are as follows: Department of Water Resources Arthur Hinojosa Chief, Division of IRWM P.O. Box 942836 Sacramento, CA 94236-0001 Phone: (916) 653-4736 e-mail: [email protected]

Walnut Valley Water District Sherry Shaw Director of Engineering 271 S. Brea Canyon Road Walnut, CA 91789 Phone: 909-595-1268 x 234 e-mail: [email protected]

Direct all inquiries to the Project Manager: Department of Water Resources Jennifer Wong Division of IRWM, Southern Region Office 770 Fairmont Ave, Suite 102 Glendale, CA 91203 Phone: (818) 549-2343 e-mail: [email protected]

Walnut Valley Water District Erik Hitchman General Manager 271 S. Brea Canyon Road Walnut, CA 91789 Phone: 909-595-1268 x 244 e-mail: [email protected]

Either party may change its Project Representative or Project Manager upon written notice to the other party.

24) STANDARD PROVISIONS. The following Exhibits are attached and made a part of this Grant Agreement by this reference: Exhibit A – Work Plan Exhibit B – Budget Exhibit C – Schedule

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Exhibit D – Standard Conditions Exhibit E – Grantee Resolution Exhibit F – Report Formats and Requirements Exhibit G – Requirements for Data Submittal Exhibit H – State Audit Document Requirements and Cost Share Guidelines for Grantees Exhibit I – Local Project Sponsors Exhibit J – Project Location

IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement. STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES ______________________________ Arthur Hinojosa, P.E., Chief Division of Integrated Regional Water Management Date__________________________

Walnut Valley Water District ______________________________ Erik Hitchman General Manager

Date__________________________

Approved as to Legal Form and Sufficiency ______________________________ Robin Brewer, Assistant Chief Counsel Office of Chief Counsel Date__________________________

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EXHIBIT A WORK PLAN

Project Title: Spadra Basin Groundwater Sustainability Plan (GSP) Project Description: Develop the necessary supporting information and generate a GSP for the Spadra Groundwater Sub-basin of the San Gabriel Valley Basin. Category (a): Grant Administration

Manage grant agreement including agreement execution and amendment(s) if necessary, communication with DWR on a timely basis, and maintenance of project files related to implementation of the grant agreement. Prepare and submit progress reports and invoices to DWR in accordance with the provisions of Exhibit F. The Grantee, or its designee, will administer and track any contracts with consultants or other agencies that are necessary to complete tasks in this Work Plan and compile the required invoice back-up information. Prepare Draft Grant Completion Report and submit to DWR in accordance with the provisions of the Grant Agreement.

Deliverables Executed grant agreement, and any applicable amendment(s) Invoices, and other required documents Final Invoice Retention Invoice Progress Reports Draft and Final Grant completion report

Category (b): Spadra Basin Model Development Develop and calibrate a new numerical groundwater-flow model of the Spadra Basin. Develop the model using industry standards, allowing for future improvements and the on-going use of the model by the stakeholders to manage the Spadra Basin. Task 1 Develop a Conceptual Model of the Spadra Basin Area Collect all the data and information necessary to complete the investigation and develop a conceptual model of the Spadra Basin in enough detail to build and calibrate the numerical groundwater-flow model.

Deliverables Conceptual model report

Task 2 Collect Additional Hydrologic Information Drill a monitoring well and collect water level, water quality, and other hydrologic information. Monitoring of key Title 22 constituents is anticipated. Complete an environmental review and submit the appropriate California Environmental Quality Act (CEQA) document to the County’s Recorder’s office and the State Clearinghouse prior to hiring a drilling company. Obtain all required permits to implement the well installation. Develop a Project Monitoring Plan.

Deliverables Technical memo describing water level, soils and water quality analysis Appropriate CEQA documentation and proof of submittal

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Copies of required permits Project Monitoring Plan

Task 3 Build and Calibrate the Numerical Groundwater-Flow Model Build and calibrate a numerical groundwater-flow model that reproduces the observed changes in groundwater levels and flows over the calibration period. Use the conceptual model of the Spadra Basin to build a 3-dimensional groundwater-flow model. Steady-state and transient flow calibrations will be performed. The model will be calibrated to a standard that ensures its usefulness as a predictive computer-simulation tool.

Deliverables Technical memorandum “Build and Calibrate Model” Final Report

Task 4 Develop and Evaluate the Baseline Scenario Develop a Baseline Scenario that represents the uncoordinated actions of the pumpers and evaluate the Baseline Scenario over a 60-year future period.

Deliverables Baseline scenario input files for model

Task 5 Prepare Draft and Final Report Prepare a technical memorandum titled “Evaluation of the Baseline Scenarios” that describes and documents the results of the simulations. A draft memorandum will be distributed to the parties for review and comment. A final memorandum will be prepared that incorporates the comments of the parties.

Deliverables

Technical Memorandum “Evaluation of the Baseline Scenarios” Task 6 Outreach Ensure that interested parties/stakeholders are engaged in the project, providing important feedback and consensus assumptions are fully vetted. Approximately six dedicated meetings are anticipated and will be in combinations of the Executive Committee, Implementation Committee, and Advisory Committee of the Spadra Basin GSA. The technical consultant executing the modeling work will prepare for and attend these meetings to describe progress and results and receive feedback from the parties.

Deliverables Meeting materials, updates and notices Public Workshops agendas, facilitation plans, materials and summaries (if applicable)

Category (c): Spadra Basin Optimization Study The objectives of this work are to develop up to four Basin Optimization Scenarios that represent the coordinated actions of the pumpers and new infrastructure, simulate each alternative scenario over the planning period, and compare the results of each simulation to the Baseline Scenarios and to each other. Task 7 Describe up to Four Basin Optimization Scenarios Develop various Basin Optimization Scenarios that are currently undefined. The optimization scenarios may include: new groundwater production patterns, pump-and-treat facilities and strategies to put poor-quality groundwater to beneficial use, and/or expanded storage and recovery programs, among others. Prepare tables and figures to describe the optimization scenario. The stakeholders will be developing these optimization scenarios and will have the opportunity to review and comment on the assumptions of the optimization scenarios

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prior to simulation.

Deliverables Table data describing Basin Optimization Scenarios

Task 8 Evaluate up to Four Basin Optimization Scenarios Convert the tables and figures that describe the optimization scenarios to input files for MODFLOW. Simulate the optimization scenarios and analyze the results in tables, charts, and maps. Use the same metrics used to evaluate the Baseline Scenario to comparatively evaluate the optimization scenarios to the Baseline Scenario and to each other.

Deliverables Input files for MODFLOW

Task 9 Prepare Draft and Final Report – “Evaluation of the Basin Optimization Scenarios” Prepare a technical memorandum titled “Evaluation of the Basin Optimization Scenarios” that describes and documents the results of the simulation of the optimization scenarios and the comparison to the Baseline Optimization Scenario and to each other. The report will include facility and management conclusions and recommendations. It will also include descriptions of the short-term and long-term effects at individual wells, on the services areas of the individual water purveyors, on the Spadra Basin, and on the Puente Basin which is downgradient. Distribute the draft final report to the parties for review and comment. Prepare a final report that incorporates the comments and suggested revisions of the parties. Task 9.1 Prepare the Numerical Groundwater-Flow Model Documentation - Model documentation will include preparation of executable files for the groundwater-flow model, all the input and output files from the calibration simulations and all the input and output files for the planning simulations. Include the model documentation on CD, and a USB Flash Drive, within the final report with a readme file that describes the included files and how to use them.

Deliverables Technical Memorandum “Evaluation of the Basin Optimization Scenarios” Final Report

Task 10 Outreach Ensure that interested parties/stakeholders are engaged in the project, providing important feedback and ensuring that consensus assumptions are fully vetted. Approximately six dedicated meetings are anticipated and will be in combinations of the Executive Committee, Implementation Committee, and Advisory Committee of the Spadra Basin GSA. The technical consultant executing the modeling work will prepare for and attend these meetings to describe progress and results and receive feedback from the parties.

Deliverables Meeting materials, updates and notices Public Workshops agendas, facilitation plans, materials and summaries (if applicable)

Category (d): GSP Development Prepare a GSP for the Spadra Basin and submit to the Department of Water Resources by January 31, 2022. The proposed technical approach will develop a GSP that meets the July 2016 general principles of the GSP Emergency Regulations Guide, culminating in achieving the sustainability goals for the basin within twenty years as well as all other state requirements. Task 11 Prepare Scope of Work and Hire Consultant to Prepare the GSP

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Develop a scope of work and a request for proposal issued to ensure the final work project is compliant with the SGMA of 2014 and the Groundwater Sustainability Plan (GSP) Emergency Regulations Guide, 2016.

Deliverables

Scope of work Executed contract with technical consultant

Task 12 Collection of information Collect available historical information, graphics, model outputs (from Project 1) and optimization scenarios (from Project 2). Facilitate the development of sustainability goals for the Spadra Basin.

Deliverables

Technical Memo of the Sustainability Goals Task 13 Preparation and Submittal of GSP Prepare a GSP that is compliant with all State requirements. The plan will be developed collaboratively through the Spadra Basin GSA and vetted and submitted consistent with state requirements and timelines. The final product will be a complete GSP that complies with all GSP Regulations for the Spadra Basin and is submitted to DWR for review.

Deliverables

Draft and Final GSP, including appendices Proof of submittal of the GSP

Task 14 Outreach Ensure that interested parties/stakeholders are engaged in the project, providing important feedback, and ensuring that consensus assumptions are fully vetted. Six dedicated meetings are anticipated and will be in combinations of the Executive Committee, Implementation Committee, and Advisory Committee of the Spadra Basin GSA. The technical consultant executing the modeling work will prepare for and attend these meetings to describe progress and results and receive feedback from the parties.

Deliverables

Meeting materials, updates and notices developed Public Workshops agendas, facilitation plans, materials and summaries (if applicable)

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EXHIBIT B BUDGET

PROJECT BUDGET

Project Title: Spadra Basin Groundwater Sustainability Plan

Categories Grant Amount

Required Cost Share (non-state source)*

Other Cost Share** Total Cost

(a) Grant Administration $8,500 $8,500 $0 $17,000

(b) Spadra Basin Model Development $175,000 $175,000 $0 $350,000

(c) Spadra Basin Optimization Study $65,000 $65,000 $0 $130,000

(d) GSP Development $90,000 $90,000 $0 $180,000

TOTAL COSTS $338,500 $338,500 $0 $677,000

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EXHIBIT C SCHEDULE

Project Schedule

Project Title: Spadra Basin Groundwater Sustainability Plan

Categories Start Date End Date

(a) Grant Administration 10/01/2017 01/31/2022

(b) Spadra Basin Model Development 01/01/2019 01/31/2022

(c) Spadra Basin Optimization Study 06/01/2020 06/30/2021

(d) Preparation of the Spadra Basin GSP 11/01/2020 01/31/2022

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EXHIBIT D STANDARD CONDITIONS

D.1) ACCOUNTING AND DEPOSIT OF FUNDING DISBURSEMENT: a) Separate Accounting of Funding Disbursements: Grantee shall account for the money disbursed

pursuant to this Grant Agreement separately from all other Grantee funds. Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Grantee shall keep complete and accurate records of all receipts and disbursements on expenditures of such funds. Grantee shall require its contractors or subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by State at any and all reasonable times.

b) Disposition of Money Disbursed: All money disbursed pursuant to this Grant Agreement shall be deposited in a non-interest bearing account, administered, and accounted for pursuant to the provisions of applicable law.

c) Remittance of Unexpended Funds: Grantee shall remit to State any unexpended funds that were disbursed to Grantee under this Grant Agreement and were not used to pay Eligible Project Costs within a period of sixty (60) calendar days from the final disbursement from State to Grantee of funds or, within thirty (30) calendar days of the expiration of the Grant Agreement, whichever comes first.

D.2) ACKNOWLEDGEMENT OF CREDIT AND SIGNAGE: Grantee shall include appropriate acknowledgement of credit to the State for its support when promoting the Project or using any data and/or information developed under this Grant Agreement. Signage shall be posted in a prominent location at Project site(s) (if applicable) or at the Grantee’s headquarters and shall include the Department of Water Resources color logo and the following disclosure statement: “Funding for this project has been provided in full or in part from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 and through an agreement with the State Department of Water Resources.” The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this paragraph.

D.3) AMENDMENT: This Grant Agreement may be amended at any time by mutual agreement of the Parties, except insofar as any proposed amendments are in any way contrary to applicable law. Requests by the Grantee for amendments must be in writing stating the amendment request and the reason for the request. State shall have no obligation to agree to an amendment.

D.4) AMERICANS WITH DISABILITIES ACT: By signing this Grant Agreement, Grantee assures State that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. § 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

D.5) AUDITS: State reserves the right to conduct an audit at any time between the execution of this Grant Agreement and the completion of the Project, with the costs of such audit borne by State. After completion of the Project, State may require Grantee to conduct a final audit to State’s specifications, at Grantee’s expense, such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may elect to pursue any remedies provided in Paragraph 12 or take any other action it deems necessary to protect its interests. Pursuant to Government Code Section 8546.7, the Grantee shall be subject to the examination and audit by the State for a period of three (3) years after final payment under this Grant Agreement with respect of all matters connected with this Grant Agreement, including but not limited to, the cost of administering this Grant Agreement. All records of Grantee or its contractor or subcontractors shall be

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preserved for this purpose for at least three (3) years after receipt of the final disbursement under this Agreement. If an audit reveals any impropriety, the Bureau of State Audits or the State Controller’s Office may conduct a full audit of any or all of the Funding Recipient’s activities. (Wat. Code, § 79708, subd. (c).)

D.6) BUDGET CONTINGENCY: If the Budget Act of the current year covered under this Grant Agreement does not appropriate sufficient funds for this program, this Grant Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of State to make any payments under this Grant Agreement. In this event, State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Grant Agreement and Grantee shall not be obligated to perform any provisions of this Grant Agreement. Nothing in this Grant Agreement shall be construed to provide Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year after the current year covered by this Grant Agreement is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Grant Agreement with no liability occurring to State, or offer a Grant Agreement amendment to Grantee to reflect the reduced amount.

D.7) CEQA: Activities funded under this Grant Agreement, regardless of funding source, must be in compliance with the California Environmental Quality Act (CEQA). (Pub. Resources Code, § 21000 et seq.) Any work that is subject to CEQA and funded under this Grant Agreement shall not proceed until documents that satisfy the CEQA process are received by the State’s Project Manager and the State has completed its CEQA compliance. Work funded under the Grant Agreement subject to a CEQA document shall not proceed until and unless approved by State Project Manager. Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. If CEQA compliance by the Grantee is not complete at the time the State signs this Agreement, once State has considered the environmental documents, it may decide to require changes, alterations, or other mitigation to the Project; or to not fund the Project. Should the State decide to not fund the Project, this Agreement shall be terminated in accordance with Paragraph 12.

D.8) CHILD SUPPORT COMPLIANCE ACT: The Grantee acknowledges in accordance with Public Contract Code Section 7110, that: a) The Grantee recognizes the importance of child and family support obligations and shall fully

comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code Section 5200 et seq.; and

b) The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

D.9) CLAIMS DISPUTE: Any claim that the Grantee may have regarding performance of this Agreement including, but not limited to, claims for additional compensation or extension of time, shall be submitted to the DWR Project Representative, within thirty (30) days of the Grantee’s knowledge of the claim. State and Grantee shall then attempt to negotiate a resolution of such claim and process an amendment to this Agreement to implement the terms of any such resolution.

D.10) COMPETITIVE BIDDING AND PROCUREMENTS: Grantee shall comply with all applicable laws and regulations regarding securing competitive bids and undertaking competitive negotiations in Grantee’s contracts with other entities for acquisition of goods and services and construction of public works with funds provided by State under this Grant Agreement.

D.11) COMPUTER SOFTWARE: Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Grant Agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws.

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D.12) CONFLICT OF INTEREST: All participants are subject to State and Federal conflict of interest laws. Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code Section 1090 and Public Contract Code Sections 10410 and 10411, for State conflict of interest requirements. a) Current State Employees: No State officer or employee shall engage in any employment, activity, or

enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services.

b) Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelve-month period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.

c) Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the California Political Reform Act. (Gov. Code, § 87100 et seq.)

d) Employees and Consultants to the Grantee: Individuals working on behalf of a Grantee may be required by the Department to file a Statement of Economic Interests (Fair Political Practices Commission Form 700) if it is determined that an individual is a consultant for Political Reform Act purposes.

D.13) DELIVERY OF INFORMATION, REPORTS, AND DATA: Grantee agrees to expeditiously provide throughout the term of this Grant Agreement, such reports, data, information, and certifications as may be reasonably required by State.

D.14) DISPOSITION OF EQUIPMENT: Grantee shall provide to State, not less than 30 calendar days prior to submission of the final invoice, an itemized inventory of equipment purchased with funds provided by State. The inventory shall include all items with a current estimated fair market value of more than $5,000.00 per item. Within 60 calendar days of receipt of such inventory State shall provide Grantee with a list of the items on the inventory that State will take title to. All other items shall become the property of Grantee. State shall arrange for delivery from Grantee of items that it takes title to. Cost of transportation, if any, shall be borne by State.

D.15) DRUG-FREE WORKPLACE CERTIFICATION: Certification of Compliance: By signing this Grant Agreement, Grantee, its contractors or subcontractors hereby certify, under penalty of perjury under the laws of State of California, compliance with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions: a) Publish a statement notifying employees, contractors, and subcontractors that unlawful

manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code Section 8355.

b) Establish a Drug-Free Awareness Program, as required by Government Code Section 8355 to inform employees, contractors, or subcontractors about all of the following:

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i) The dangers of drug abuse in the workplace, ii) Grantee’s policy of maintaining a drug-free workplace, iii) Any available counseling, rehabilitation, and employee assistance programs, and iv) Penalties that may be imposed upon employees, contractors, and subcontractors for drug

abuse violations. c) Provide, as required by Government Code Section 8355, that every employee, contractor, and/or

subcontractor who works under this Grant Agreement: i) Will receive a copy of Grantee’s drug-free policy statement, and ii) Will agree to abide by terms of Grantee’s condition of employment, contract or subcontract.

D.16) EASEMENTS: Where the Grantee acquires property in fee title or funds improvements to real property already owned in fee by the Grantee using State funds provided through this Grant Agreement, an appropriate easement or other title restriction providing for floodplain preservation and agricultural and/or wildlife habitat conservation for the subject property in perpetuity, approved by the State, shall be conveyed to a regulatory or trustee agency or conservation group acceptable to the State. The easement or other title restriction must be in first position ahead of any recorded mortgage or lien on the property unless this requirement is waived by the State. Where the Grantee acquires an easement under this Agreement, the Grantee agrees to monitor and enforce the terms of the easement, unless the easement is subsequently transferred to another land management or conservation organization or entity with State permission, at which time monitoring and enforcement responsibilities will transfer to the new easement owner. Failure to provide an easement acceptable to the State can result in termination of this Agreement.

D.17) FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED PROFESSIONAL: Upon completion of the Project, Grantee shall provide for a final inspection and certification by a California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist, that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Grant Agreement.

D.18) GRANTEE'S RESPONSIBILITY. Grantee and its representatives shall: a) Faithfully and expeditiously perform or cause to be performed all project work as described in

Exhibit A and in accordance with Project Exhibit B and Exhibit C. b) Accept and agree to comply with all terms, provisions, conditions, and written commitments of this

Grant Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in the application, documents, amendments, and communications filed in support of its request for funding.

c) Comply with all applicable California, federal, and local laws and regulations. d) Implement the Project in accordance with applicable provisions of the law. e) Fulfill its obligations under the Grant Agreement and be responsible for the performance of the

Project. f) Obtain any and all permits, licenses, and approvals required for performing any work under this

Grant Agreement, including those necessary to perform design, construction, or operation and maintenance of the Project. Grantee shall provide copies of permits and approvals to State.

g) Be solely responsible for design, construction, and operation and maintenance of projects within the work plan. Review or approval of plans, specifications, bid documents, or other construction documents by State is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee under this Agreement.

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h) Be solely responsible for all work and for persons or entities engaged in work performed pursuant to this Grant Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Grantee shall be responsible for any and all disputes arising out of its contracts for work on the Project, including but not limited to payment disputes with contractors and subcontractors. The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work.

D.19) GOVERNING LAW: This Grant Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

D.20) INCOME RESTRICTIONS: The Grantee agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Grantee under this Agreement shall be paid by the Grantee to the State, to the extent that they are properly allocable to costs for which the Grantee has been reimbursed by the State under this Agreement.

D.21) INDEMNIFICATION: Grantee shall indemnify and hold and save the State, its officers, agents, and employees, free and harmless from any and all liabilities for any claims and damages (including inverse condemnation) that may arise out of the Project and this Agreement, including, but not limited to any claims or damages arising from planning, design, construction, maintenance and/or operation of this Project and any breach of this Agreement. Grantee shall require its contractors or subcontractors to name the State, its officers, agents and employees as additional insureds on their liability insurance for activities undertaken pursuant to this Agreement.

D.22) INDEPENDENT CAPACITY: Grantee, and the agents and employees of Grantees, in the performance of the Grant Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State.

D.23) INSPECTION OF BOOKS, RECORDS, AND REPORTS: During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Grant Agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this Grant Agreement. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may withhold disbursements to Grantee or take any other action it deems necessary to protect its interests.

D.24) INSPECTIONS OF PROJECT BY STATE: State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Grant Agreement. This right shall extend to any subcontracts, and Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Grant Agreement with State.

D.25) LABOR CODE COMPLIANCE: The Grantee agrees to be bound by all the provisions of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. Current DIR requirements may be found at http://www.dir.ca.gov/lcp.asp. For more information, please refer to DIR’s Public Works Manual at: http://www.dir.ca.gov/dlse/ PWManualCombined.pdf. The Grantee affirms that it is aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance, and the Grantee affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision.

D.26) MODIFICATION OF OVERALL WORK PLAN: At the request of the Grantee, the State may at its sole discretion approve non-material changes to the portions of Exhibit A which concern the budget and schedule without formally amending this Grant Agreement. Non-material changes with respect to the budget are changes that only result in reallocation of the budget and will not result in an increase in the amount of the State Grant Agreement. Non-material changes with respect to the Project schedule are

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changes that will not extend the term of this Grant Agreement. Requests for non-material changes to the budget and schedule must be submitted by the Grantee to the State in writing and are not effective unless and until specifically approved by the State’s Program Manager in writing.

D.27) NONDISCRIMINATION: During the performance of this Grant Agreement, Grantee and its contractors or subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), marital status, and denial of medial and family care leave or pregnancy disability leave. Grantee and its contractors or subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its contractors or subcontractors shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code, § 12990.) and the applicable regulations promulgated there under (Cal. Code Regs., tit. 2, § 11000 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing the California Fair Employment and Housing Act are incorporated into this Agreement by reference. Grantee and its contractors or subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. Grantee shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Grant Agreement.

D.28) OPINIONS AND DETERMINATIONS: Where the terms of this Grant Agreement provide for action to be based upon, judgment, approval, review, or determination of either party hereto, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.

D.29) PRIORITY HIRING CONSIDERATIONS: If this Grant Agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the Grant Agreement to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Public Contract Code Section 10353.

D.30) PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT STATE PERMISSION: The Grantee shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the Project, or with Grantee’s service of water, without prior permission of State. Grantee shall not take any action, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Grantee to meet its obligations under this Grant Agreement, without prior written permission of State. State may require that the proceeds from the disposition of any real or personal property be remitted to State.

D.31) REMEDIES NOT EXCLUSIVE: The use by either party of any remedy specified herein for the enforcement of this Grant Agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.

D.32) RETENTION: The State shall withhold ten percent (10%) of the funds requested by the Grantee for reimbursement of Eligible Project Costs until the Project is completed and Final Project Completion Report is approved. Any retained amounts due to the Grantee will be promptly disbursed to the Grantee, without interest, upon completion of the Project.

D.33) RIGHTS IN DATA: Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes and other written or graphic work produced in the performance of this Grant Agreement shall be made available to the State and shall be in the public domain to the extent to which release of such materials is required under the California Public Records Act. (Gov. Code, § 6250 et seq.) Grantee may disclose, disseminate and use in whole or in part, any final form

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data and information received, collected and developed under this Grant Agreement, subject to appropriate acknowledgement of credit to State for financial support. Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. The State shall have the right to use any data described in this paragraph for any public purpose.

D.34) SEVERABILITY: Should any portion of this Grant Agreement be determined to be void or unenforceable, such shall be severed from the whole and the Grant Agreement shall continue as modified.

D.35) SUSPENSION OF PAYMENTS: This Grant Agreement may be subject to suspension of payments or termination, or both if the State determines that: a) Grantee, its contractors, or subcontractors have made a false certification, or b) Grantee, its contractors, or subcontractors violates the certification by failing to carry out the

requirements noted in this Grant Agreement. D.36) SUCCESSORS AND ASSIGNS: This Grant Agreement and all of its provisions shall apply to and bind

the successors and assigns of the parties. No assignment or transfer of this Grant Agreement or any part thereof, rights hereunder, or interest herein by the Grantee shall be valid unless and until it is approved by State and made subject to such reasonable terms and conditions as State may impose.

D.37) TERMINATION BY GRANTEE: Subject to State approval which may be reasonably withheld, Grantee may terminate this Agreement and be relieved of contractual obligations. In doing so, Grantee must provide a reason(s) for termination. Grantee must submit all progress reports summarizing accomplishments up until termination date.

D.38) TERMINATION FOR CAUSE: Subject to the right to cure under Paragraph 12, the State may terminate this Grant Agreement and be relieved of any payments should Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein, provided including but not limited to reasons of default under Paragraph 12

D.39) TERMINATION WITHOUT CAUSE: The State may terminate this Agreement without cause on 30 days advance written notice. The Grantee shall be reimbursed for all reasonable expenses incurred up to the date of termination.

D.40) THIRD PARTY BENEFICIARIES: The parties to this Agreement do not intend to create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or any duty, covenant, obligation or understanding established herein.

D.41) TIMELINESS: Time is of the essence in this Grant Agreement. D.42) TRAVEL – DAC, EDA, or SDAC PROJECT/COMPONENT: If a Project/Component obtains a DAC,

EDA, or SDAC Cost Share Waiver, the Grantee may submit travel and per diem costs for eligible reimbursement with State funds. Travel includes the reasonable and necessary costs of transportation, subsistence, and other associated costs incurred by personnel during the term of this Grant Agreement. Any reimbursement for necessary travel and per diem shall be at rates not to exceed those set by the California Department of Human Resources. These rates may be found at: http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Reimbursement will be at the State travel and per diem amounts that are current as of the date costs are incurred. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the State. All travel approved expenses will be reimbursed at the percentage rate of the DAC, EDA, or SDAC Cost Share Waiver. For example, if the Grantee obtains a 100% Waiver, 100% of all approved travel expenses can be invoiced for reimbursement. If the Grantee obtains a 50% Waiver, only 50% of eligible travel expenses will be reimbursed by these grant funds.

D.43) TRAVEL – NON-DAC, EDA, or SDAC PROJECT/COMPONENT: Grantee agrees that travel and per diem costs shall NOT be eligible for reimbursement with State funds, unless the Grantee’s service area

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is considered a DAC, EDA, or SDAC. The Grantee also agrees that travel and per diem costs shall NOT be eligible for computing Grantee Local Cost Share. Travel includes the costs of transportation, subsistence, and other associated costs incurred by personnel during the term of this Grant Agreement.

D.44) UNION ORGANIZING: Grantee, by signing this Grant Agreement, hereby acknowledges the applicability of Government Code Sections 16645 through 16649 to this Grant Agreement. Furthermore, Grantee, by signing this Grant Agreement, hereby certifies that: a) No State funds disbursed by this Grant Agreement will be used to assist, promote, or deter union

organizing. b) Grantee shall account for State funds disbursed for a specific expenditure by this Grant Agreement

to show those funds were allocated to that expenditure. c) Grantee shall, where State funds are not designated as described in (b) above, allocate, on a pro

rata basis, all disbursements that support the program. d) If Grantee makes expenditures to assist, promote, or deter union organizing, Grantee will maintain

records sufficient to show that no State funds were used for those expenditures and that Grantee shall provide those records to the Attorney General upon request.

D.45) VENUE: The State and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement.

D.46) WAIVER OF RIGHTS: None of the provisions of this Grant Agreement shall be deemed waived unless expressly waived in writing. It is the intention of the parties here to that from time to time either party may waive any of its rights under this Grant Agreement unless contrary to law. Any waiver by either party of rights arising in connection with the Grant Agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect.

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EXHIBIT E AUTHORIZING RESOLUTION ACCEPTING FUNDS

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EXHIBIT F REPORT FORMATS AND REQUIREMENTS

The following reporting formats should be utilized. Please obtain State approval prior to submitting a report in an alternative format. PROGRESS REPORTS Progress reports shall generally use the following format. This format may be modified as necessary to effectively communicate information. For the Project, or each component, discuss the following at the task level, as organized in Exhibit A:

• Percent complete estimate. • Discussion of work accomplished during the reporting period. • Milestones or deliverables completed/submitted during the reporting period. • Meetings held or attended. • Scheduling concerns and issues encountered that may delay completion of the task.

For each project, discuss the following at the project level, as organized in Exhibit A:

• Work anticipated for the next reporting period. • Photo documentation, as appropriate. • Any schedule or budget modifications approved by DWR during the reporting period.

COMPLETION REPORT The Completion Report shall generally use the following format provided below for each Component or Project after completion.

Executive Summary The Executive Summary should include a brief summary of project information and include the following items:

• Brief description of work proposed to be done in the original Grant application. • Description of actual work completed and any deviations from Exhibit A. List any official

amendments to this Grant Agreement, with a short description of the amendment. Reports and/or Products The following items should be provided, unless already submitted as a deliverable:

• A copy of the Groundwater Sustainability Plan (GSP) that meets all the requirements of the GSP Regulations (for GSP Development Projects), or verification (e.g., acceptance email, or other approved documentation from SGMA), that the GSP was submitted to DWR as required.

• A copy of any final technical report or study, produced for or utilized in this Project as described in the Work Plan

• Electronic copies of any data collected, not previously submitted • Discussion of problems that occurred during the work and how those problems were resolved • Final Component schedule showing actual progress versus planned progress

Additional information that may be applicable for Implementation Projects and/or Components includes the following:

• As-built drawings • Final geodetic survey information • Project or Component photos

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Cost & Disposition of Funds A list showing:

• Summary of Project costs including the following items: o Accounting of the cost of project expenditure o Include all internal and external costs not previously disclosed (i.e., additional cost share); and o A discussion of factors that positively or negatively affected the project cost and any deviation

from the original Project cost estimate.

Additional Information • Benefits derived from the Component, with quantification of such benefits provided, applicable for

Implementation Components. • A final project schedule showing actual progress versus planned progress as shown in Exhibit C. • Certification from a California Registered Professional (Civil Engineer or Geologist, as appropriate)

that the project was conducted in accordance with the approved work plan and any approved modifications thereto.

• Submittal schedule for the Post Performance Report.

GRANT COMPLETION REPORT The Grant Completion Report shall generally use the following format. This format may be modified as necessary to effectively communicate information on the various projects in the SGWP Grant Program funded by this Grant Agreement, and includes the following:

Executive Summary The Executive Summary consists of a maximum of ten (10) pages summarizing information for the grant as well as the individual components. Reports and/or products • Brief comparison of work proposed in the original 2017 SGWP Grant application and actual work

done. • Brief description of the Project or components completed and how they achieve either or both of the

following: o Serve SDAC(s) and support groundwater sustainability planning and management in the

basin (Implementation Projects); and/or o Support planning, development, and/or preparation of GSP(s) that will comply with and meet

the requirements of the GSP Regulations (GSP Development Projects). • Identify remaining work and mechanism for their implementation (Implementation Projects). • If applicable (e.g., if a DAC, EDA, or SDAC Cost Share Waiver was approved), a discussion of the

benefits to DAC, EDA, and/or SDAC as part of this Grant Agreement.

Cost & Disposition of Funds Information • A summary of final funds disbursement for the Project, or each component. Additional Information • Summary of the submittal schedule for the Post Performance Reports applicable for the Project, or

each of the components in this Grant Agreement.

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POST-PERFORMANCE REPORT The Post-Performance Report should be concise, and focus on how (each/the) project or component is actually performing compared to its expected performance; whether the project or component is being operated and maintained, and providing intended benefits as proposed (for Implementation Project or components). The Post-Performance Report should follow the same general format and provide requested information as required to be included in the Project Monitoring Plan (Exhibit K). As applicable, the following information, at a minimum, shall be provided:

Reports and/or products • Time period of the annual report (e.g., January 2018 through December 2018) • Short project description • Discussion of the project benefits • An assessment of any explanations for any differences between the expected versus actual project

benefits as stated in the original 2017 SGWP Grant application. Where applicable, the reporting should include quantitative metrics (i.e., new acre-feet of water produced that year, etc.).

• Summary of any additional costs and/or benefits deriving from the project since its completion, if applicable.

• Continued reporting on meeting the Output Indicators and Targets discussed in the Project and/or Component Monitoring Plan discussed in Paragraph 18 of this Grant Agreement.

• Any additional information relevant to or generated by the continued operation of the project.

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EXHIBIT G REQUIREMENTS FOR DATA SUBMITTAL

Surface and Groundwater Quality Data: Groundwater quality and ambient surface water quality monitoring data that include chemical, physical, or biological data shall be submitted to the State as described below, with a narrative description of data submittal activities included in project reports, as described in Exhibit F. Surface water quality monitoring data shall be prepared for submission to the California Environmental Data Exchange Network (CEDEN). The CEDEN data templates are available on the CEDEN website. Inclusion of additional data elements described on the data templates is desirable. Data ready for submission should be uploaded to your CEDEN Regional Data Center via the CEDEN website. (CEDEN website: http://www.ceden.org). If a project’s Work Plan contains a groundwater ambient monitoring element, groundwater quality monitoring data shall be submitted to the State for inclusion in the State Water Resources Control Board’s Groundwater Ambient Monitoring and Assessment (GAMA) Program Information on the GAMA Program can be obtained at: http://www.waterboards.ca.gov/water_issues/programs/gama/. If further information is required, the Grantee can contact the State Water Resources Control Board (SWRCB) GAMA Program. A listing of SWRCB staff involved in the GAMA program can be found at: http://www.swrcb.ca.gov/water_issues/programs/gama/contact.shtml Groundwater Level Data Grantee shall submit to DWR groundwater level data collected as part of this grant. Water level data must be submitted using the California Statewide Groundwater Elevation Monitoring (CASGEM) online data submission system. Grantee should use their official CASGEM Monitoring Entity or Cooperating Agency status to gain access to the online submittal tool and submit data. If the data is from wells that are not part of the monitoring network, the water level measurements should be classified as voluntary measurements in the CASGEM system. If the grantee is not a Monitoring Entity or Cooperating Agency, please contact your DWR grant project manager for further assistance with data submittal. The activity of data submittal should be documented in appropriate progress or final project reports, as described in Exhibit F. Information regarding the CASGEM program can be found at: http://www.water.ca.gov/Programs/Groundwater-Management/Groundwater-Elevation-Monitoring--CASGEM

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http://www.ceden.org/

http://www.waterboards.ca.gov/water_issues/programs/gama/

http://www.swrcb.ca.gov/water_issues/programs/gama/contact.shtml

http://www.water.ca.gov/Programs/Groundwater-Management/Groundwater-Elevation-Monitoring--CASGEM


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EXHIBIT H STATE AUDIT DOCUMENT REQUIREMENTS AND COST SHARE GUIDELINES FOR GRANTEES

The following provides a list of documents typically required by State Auditors and general guidelines for Grantees. List of documents pertains to both State funding and Grantee’s Cost Share and details the documents/records that State Auditors would need to review in the event of this Grant Agreement is audited. Grantees should ensure that such records are maintained for each funded project. State Audit Document Requirements Internal Controls 1. Organization chart (e.g., Agency’s overall organization chart and organization chart for the State funded

Program/Project). 2. Written internal procedures and flowcharts for the following:

a) Receipts and deposits b) Disbursements c) State reimbursement requests d) Expenditure tracking of State funds e) Guidelines, policy, and procedures on State funded Program/Project

3. Audit reports of the Agency internal control structure and/or financial statements within the last two years. 4. Prior audit reports on the State funded Program/Project. State Funding: 1. Original Grant Agreement, any amendment(s) and budget modification documents. 2. A listing of all bond-funded grants, loans, or subventions received from the State. 3. A listing of all other funding sources for each Program/Project. Contracts: 1. All subcontractor and consultant contracts and related or partners documents, if applicable. 2. Contracts between the Agency and member agencies as related to the State funded Program/Project. Invoices: 1. Invoices from vendors and subcontractors for expenditures submitted to the State for payments under the

Grant Agreement. 2. Documentation linking subcontractor invoices to State reimbursement, requests and related Grant

Agreement budget line items. 3. Reimbursement requests submitted to the State for the Grant Agreement. Cash Documents: 1. Receipts (copies of warrants) showing payments received from the State. 2. Deposit slips (or bank statements) showing deposit of the payments received from the State. 3. Cancelled checks or disbursement documents showing payments made to vendors, subcontractors,

consultants, and/or agents under the grants or loans. 4. Bank statements showing the deposit of the receipts.

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Accounting Records: 1. Ledgers showing entries for Grantee’s receipts and cash disbursements. 2. Ledgers showing receipts and cash disbursement entries of other funding sources. 3. Bridging documents that tie the general ledger to requests for Grant Agreement reimbursement. Administration Costs: 1. Supporting documents showing the calculation of administration costs. Personnel: 1. List of all contractors and Agency staff that worked on the State funded Program/Project. 2. Payroll records including timesheets for contractor staff and the Agency personnel who provided services

charged to the program Project Files: 1. All supporting documentation maintained in the project files. 2. All Grant Agreement related correspondence. Cost Share Guidelines Cost Share consists of non-State funds, including in-kind services. In-kind services are defined as work performed (i.e., dollar value of non-cash contributions) by the Grantee (and potentially other parties) directly related to the execution of the funded project. Examples include volunteer services, equipment use, and use of facilities. The cost of in-kind service can be counted as cost share in-lieu of actual funds (or revenue) provided by the Grantee. Other cost share and in-kind service eligibility conditions may apply. Provided below is guidance for documenting cost share with and without in-kind services. 1. Although tracked separately, in-kind services shall be documented and, to the extent feasible, supported by

the same methods used by the Grantee for its own employees. Such documentation should include the following:

a. Detailed description of the contributed item(s) or service(s) b. Purpose for which the contribution was made (tied to project work plan) c. Name of contributing organization and date of contribution d. Real or approximate value of contribution. Who valued the contribution and how was the value

determined? (e.g., actual, appraisal, fair market value, etc.). Justification of rate. (See item #2, below)

e. Person’s name and the function of the contributing person f. Number of hours contributed g. If multiple sources exist, these should be summarized on a table with summed charges h. Source of contribution if it was provided by, obtained with, or supported by government funds

2. Rates for volunteer or in-kind services shall be consistent with those paid for similar work in the Grantee’s organization. For example, volunteer service of clearing vegetation performed by an attorney shall be valued at a fair market value for this service, not the rate for professional legal services. In those instances in which the required skills are not found in the recipient organization, rates shall be consistent with those paid for similar work in the labor market. Paid fringe benefits that are reasonable, allowable and allocable may be included in the valuation.

3. Cost Share contribution (including in kind services) shall be for costs and services directly attributed to activities included in the Grant Agreement. These services, furnished by professional and technical

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personnel, consultants, and other skilled and unskilled labor may be counted as in-kind if the activities are an integral and necessary part of the project funded by the Grant Agreement.

4. Cash contributions made to a project shall be documented as revenue and in-kind services as expenditure. These costs should be tracked separately in the Grantee’s accounting system.

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EXHIBIT I

LOCAL PROJECT SPONSORS Not Used

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EXHIBIT J PROJECT LOCATION

Project and/or Component Location/Site/Vicinity Map – Provide a map and/or diagrams depicting the project, and Components, location with a marker or service area (may represent the area covered by a GSP Development Component); the basin boundary (per DWR Bulletin 118), facilities of the project (if applicable); DACs, EDAs, or SDACs within the project area (if applicable); and any other project features that may apply. Project Drawings and Sketches – Provide drawings or sketches of project features in adequate detail to describe them (if appropriate for implementation projects). If needed, provide a description of the project location including location of all applicable components, overlying jurisdiction (City, County, State, or Federal land), GSA boundaries, Assessor Parcel Numbers, property addresses, legal descriptions, and Latitude/Longitude of project site.

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EXHIBIT K MONITORING AND MAINTENANCE PLAN

Introduction

• Goals and objectives of project

• Site location and history

• Improvements implemented Monitoring and Maintenance Plan

• Monitoring Metrics (e.g., Plant establishment, bank erosion, hydraulic characteristics, habitat expansion)

• Maintenance Metrics (e.g., irrigation, pest management, weed abatement, continuous invasive species removal until natives established)

• Special Environmental Considerations (e.g., resource agency requirements, permit requirements, CEQA/NEPA mitigation measures)

• Performance Measures, or success/failure criteria monitoring results measured against (e.g., percent canopy cover after 1, 5, 10 years, water temperature decrease, site specific sediment scour or retention)

• Method of Reporting (e.g., paper reports, online databases, public meetings)

• Frequency of Duration Monitoring and Reporting (daily, weekly, monthly, yearly)

• Frequency and Duration of Maintenance Activities

• Responsible Party (i.e., who is who is responsible for monitoring and maintenance)

• Implementing responsibility (i.e., conducting monitoring and/or maintenance)

• Adaptive Management Strategies (i.e., what happens when routine monitoring or maintenance encounters a problem)

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131

WVWD – Staff Report TO: Board of Directors FROM: General Manager DATE: October 15, 2018 SUBJECT: Receive and File the Puente Basin Watermaster Annual Report for Fiscal

Year 2017-18

Action/Discussion Fiscal Impact Resolution Information Only Recommendation Request the Board of Directors receive and file the Thirty-first Annual Report for the Puente Basin Watermaster for Fiscal Year 2017-18. Background Information Each year, in accordance with the “Puente Basin Judgment,” the Puente Basin Watermaster prepares an annual report, which contains the annual determinations and calculations, budget and an account of the Watermaster’s activities for the prior fiscal year. Attached are copies of • Appendix B: Annual Pumping and Carry-Over • Appendix C: Water Imported into Puente Basin and Import Return Flow Credits • Appendix D: Annual Pumping Right at an Operating Safe Yield of 1,530 Acre-Feet for Fiscal

Year 2018-19 Please note, that the full report and past reports are available for review in the District library. Attachments as noted

132

(1) (2) (3) (4) (5) (11) (12) Annual Pumping Right Carry-

over toTotal 2018-19

(1)+(2)-(3) Water Annual Excess Pumping (6)-(7)2016-17 2016-17 +(4)+(5) Pumped Total Allowable Unauthorized -(11)

PRINCIPAL PRODUCERSCity of Industry 306.0 0.0 0.0 306.0 0.0 612.0 568.0 0.0 0.0 0.0 0.0 44.0Successor Agency to Industry Urban Development Agency 306.0 0.0 0.0 306.0 0.0 612.0 568.0 0.0 0.0 0.0 0.0 44.0Royal Vista Golf Course 306.0 NA1/ 31.6 0.0 0.0 274.4 362.6 2/ 88.2 30.6 57.6 0.0 0.0Rowland Water District 306.0 240.6 0.0 546.9 0.0 1,093.5 217.3 0.0 0.0 0.0 329.6 546.6Walnut Valley Water District 306.0 116.9 0.0 306.0 0.0 728.9 575.5 0.0 0.0 0.0 0.0 153.4Subtotal 1,530.0 240.9 68.4 1,814.2 0.0 3,320.8 2,291.4 88.2 30.6 57.6 329.6 788.0BASIN CLEAN-UP PUMPINGBDP Corporation NA NA NA NA NA NA 58.9 NA NA NA NA NAMalibu Grand Prix 3/ --- --- --- --- --- --- --- --- --- --- --- ---Hamilton Standard Controls 4/ --- --- --- --- --- --- --- --- --- --- --- ---Subtotal 58.9

GRAND TOTAL 1,530.0 240.9 68.4 1,814.2 0.0 3,320.8 2,350.3 88.2 30.6 57.6 329.6 788.0

1/ Not Applicable.2/ Due to sale of Airey Property, 12 acre-feet production from Airey well will not be attributed to Royal Vista Golf Course, formerly Los Angeles Royal Vista Golf Course.3/ CRWQCB has accepted a closure plan from MGP which is no longer producing groundwater.4/ United Technologies filed a Closure Report on 11/17/2000 and it was approved by CRWQCB on 1/9/2001.

Appendix BANNUAL PUMPING AND CARRY-OVER (acre-feet)

2017-18Puente Basin Watermaster

Pumper's Share of

Operating Safe Yield

Return Flow

Credit

Excess Pumping

Lost Carry-over

(4)-(7)

Carry-over from

Pumpers

(8) (9) (10)(6) (7)

Leases

Appendix B

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WATER IMPORTED INTO PUENTE BASIN AND IMPORT RETURN FLOW CREDITS (acre-feet)Puente Basin Watermaster

(5) (7) (8)Total Calculated Allocation

Fiscal Year 2017-18 Imports Import of ImportMetropolitan Reclaimed Ground in Difference Return Return Flow

Water Water Water Total 1984-85 (4)-(5) 1/ Flow Credit 2/

DEFENDANTSCity of Industry 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Successor Agency to Industry Urban Development Agency 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Royal Vista Golf Course NA 3/ NA NA NA NA NA NA NA

GRAND TOTAL 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

PLAINTIFFSRowland Water District 5,709.0 825.8 0.0 6,534.8 5,197.8 1,337.0 200.6 200.6Walnut Valley Water District 6,518.1 1,092.7 0.0 7,610.8 6,630.9 979.9 147.0 147.0

GRAND TOTAL 12,227.1 1,918.5 0.0 14,145.6 11,828.7 2,316.9 347.6 347.6

1/ The return flow credit is 15 percent of this amount, up to 750 acre-feet to the plaintiffs and defendants, each.2/ Allocated per direction of Rowland and Walnut pursuant to Paragraph 9, subparagraph B.3/ Not Applicable.

Appendix C

(4) (6)

Producer

(1) (2) (3)

Appendix C

134

(1) (2) (3) (4) (5)

2017-18 2017-18 2017-18(AF) (AF) (AF)

PRINCIPAL PRODUCERSCity of Industry 306.0 0.0 44.0 0.0 350.0Successor Agency to Industry Urban Development Agency 306.0 0.0 44.0 0.0 350.0Royal Vista Golf Course 306.0 88.2 0.0 NA1/ 217.8Rowland Water District 306.0 0.0 546.6 200.6 1,053.2Walnut Valley Water District 306.0 0.0 153.4 147.0 606.4

GRAND TOTAL 1,530.0 88.2 788.0 347.6 2,577.4

1/ Not Applicable.

Appendix DANNUAL PUMPING RIGHT AT AN OPERATING

SAFE YIELD OF 1,530 ACRE-FEET FOR FISCAL YEAR 2018-19Puente Basin Watermaster

Pumper's Share of

Operating Safe Yield

(AF)

Excess Pumping

in Carry-

over from

Return Flow Credit For Water

Imported into the Basin

Annual Pumping

Right (AF)Pumpers

Appendix D

135

PROJECT/WORK ORDER

NO.

PROJECT DESCRIPTION STATUS

N/A Watermain and water service repair

Repair Water Service Leaks: Leaking Irrigation Service lateral at Cold Springs Lane N/E of Diamond Bar Boulevard. Leaking service lateral at 21338 Hipass Drive, Diamond Bar. Leaking service lateral at 20247 Fuerte Drive, Walnut.Repair Water Main Leaks: No water main leaks in the month of September.Replaced Copper Setters: 19314 Borroso Street, Rowland Heights. 671 Pantera Drive, 21802 Paint Brush Lane, 3372 Falcon Ridge Road, Diamond Bar. 19365 Greyhall Street, Rowland Heights. 19803 Paseo Lucer, 20241 Rim Ridge, Walnut. 3145 Point Cedar Drive, West Covina.Replaced Angle Meter Stops: 504 Looking Glass Drive, 3854 Castle Rock Road, Diamond Bar. 403 Cloverdale Lane, 20905 Northview Drive, 21059 Sandpiper Street, 1348 Dubuque Avenue, Walnut.Water System/Miscellaneous Upgrades: Crews performed fire flow test at 20260 Evening Breeze Drive, Rowland Heights. Doty Crews abandoned Lycoming PRV station as per project 17-3478, District Crews abandon PRV station at 23934 Decorah Road as per project 17-3478, Flow tested (141) residential meters in W2 billing cycle, Install (73) Bagder AMI meter registers in billing cycle W3, Diamond Bar. Doty Bros crews replaced 8' foot fire hydrant spool with 2 inch tap at Chestnut Hill Reservoir, Walnut. Crews continued valve maintenance (exercise valves) in residential route 8-6, Rowland Heights. OPARC crews continue to paint Fire Hydrants in designated residential routes, District Wide.

N/A Repair of sheared fire hydrant assemblies

District Crews repaired a sheared fire hydrant at 20367 Walnut Canyon Road in Walnut.

17-3482 Valve Replacement Program Replaced 20" butterfly valve at the intersection of Lycoming Street and Brea Canyon Road (P.N. 17-3478) 47°

OPERATIONS DEPARTMENT REPORT

136

PROJECT/WORK ORDER

NO.

PROJECT DESCRIPTION STATUS

OPERATIONS DEPARTMENT REPORT

17-3493 Parker Canyon/ArmitosChlorine Analyzers/Active Mixing System

Parker Canyon Residual Control System (RCS) construction is on hold until recoating is complete.

N/A Production Maintenance

Brea Canyon Recycled Pump Station Pump Nos. 1 & 2 and Arbor Ridge Pump No. 2 pumps and motors were reinstalled after rehabilitation (Pump Rehabilitation Program). Parker Canyon Reservoir is currently being recoated (Reservoir Coating Program). Inlet valves were installed at Parker Canyon future pump nos. 3 & 4. Sylvan Glen was drained and interior was cleaned for 1 year warranty inspection. 8” CLAVAL was installed on Parker Canyon Pump No. 3. Production has been busy dosing & cycling reservoirs and moving water directly from MWD connections to keep water quality at its best.

N/AWater Quality:UCMR4 Testing is UnderwayTotal Trihalomethanes (TTHMs) Graph

Water quality meets all state and federal standards.

137

WVWD – Staff Report TO: Board of Directors FROM: General Manager DATE: October 15, 2018 SUBJECT: Annual Review and Consideration of Revisions of Board Policies for Ethical Conduct

Regarding Board of Directors Compensation and Expenses and Exhibits A, C, and F

Action/Discussion Fiscal Impact Resolution Information Only Recommendation That the Board of Directors approve the proposed changes of the Board Policies for Ethical Conduct Regarding Board of Directors Compensation and Expenses and its respective exhibits (as listed below).

Policy/Exhibit Last

Reviewed by Board

Policies for Ethical Conduct Regarding Board of Directors Compensation and Expenses Dec. 2017 Exhibit A Meeting and Expense Report Form Aug. 2018 Exhibit C Guidelines for Board Compensated Meetings and Activities Dec. 2017 Exhibit F Meal Expense Reimbursement Schedule/Guidelines Dec. 2017

Exhibit G Missing Receipt Affidavit Form Newly Proposed

Background Information As contained in the District’s Policies for Ethical Conduct Regarding Board of Directors Compensation and Expenses,

“The Personnel Committee shall, on an annual basis in the fourth quarter of each calendar year, review Exhibit A, Exhibit C, and Exhibit F.” Additionally, “this policy in its entirety shall be reviewed by the Board of Directors on an annual basis.”

Staff and Legal counsel suggest proposed revisions to the “Policies for Ethical Conduct Regarding Board of Directors Compensation and Expenses” and corresponding exhibits as redlined in the attached documents. Those changes are set forth in: (i) Section I (C)(1) on page 2, which adds a new Exhibit G that relates to missing receipts; (ii) Section II(B)(2)(c)(ii) on page 4, which adds a new provision concerning the use of taxis and/or ridesharing companies; (iii) Section II(B)(4)(a) on page 5, which adds a provision to emphasize early confirmation of attendance to allow for early room registration discounts; and (iv) Section II(C)(1(a) on page 6, which adds a reference to the new “Missing Receipt Affidavit Form (Exhibit G). Revisions are also proposed to Exhibit C to add Spadra Basin GSA and the Los Angeles County Fourth District Consolidated Oversight Board to the list of compensable meetings, and to Exhibit F to add language referencing Exhibit G relative to the Missing Receipt Affidavit Form.

138

1

Adopted 12/21/04; Rev. 9/20/05; 1/24/06; 11/20/07; 11/17/08; 11/16/09; 11/15/10; 11/21/2011; 11/19/12; 2/19/13; 11/18/13; 11/16/15; 12/4/17

POLICIES FOR ETHICAL CONDUCT REGARDING BOARD OF DIRECTORS COMPENSATION AND EXPENSES

It is the policy of the Walnut Valley Water District (“District”) that Board Members maintain the highest ethical standards of honesty and integrity. To assist Directors in meeting these standards there need to be clear policies guiding the Board with respect to compensation and expenses. These policies set forth the basic ethical standards for the members of the Board of Directors. I. COMPENSATION FOR ATTENDANCE AT CONFERENCES, MEETINGS, SEMINARS,

AND OTHER EVENTS A. General Principles

1. Board members will be compensated at the daily rate (i.e., per diem) determined by the Board consistent with applicable law for attendance at meetings of the Board, including Board committee meetings, and for each day’s service to the District, including travel time to and from conferences, meetings, seminars or other events, i.e., teleconferences, as set forth in these policies.

2. In addition to compensation for attendance, Directors will receive reimbursement

for reasonable meals, lodging, and travel expenses incurred in attending Board approved activities in accordance with this policy.

B. Substantive Requirements

1. In order for a Board member to be paid a lawfully established per diem for attendance at a conference, organized educational activity, meeting, seminar, or other event, i.e., teleconference, or for reasonable and necessary travel time to and from, it must be:

a. A “meeting” as defined in subdivision (a) of Government Code Section

54952.2 of the Brown Act, which currently reads:

“‘meeting’ includes any congregation of a majority of the members of a legislative body at the same time and place to hear, discuss, or deliberate upon any item that is within the subject matter jurisdiction of the legislative body or the local agency to which it pertains,” or

b. A committee meeting or other Board approved meeting, conference,

organized educational activity, seminar, or other event, i.e., teleconference, related to or informing the Board member on matters within the jurisdiction of the statutory powers of the District, provided that the program or subject matter deals with substantive issues of importance to the District; and such other activities, seminars or other events that deal with substantive issues of importance to the District that are approved by the General Manager as specified in Exhibit “C”.

2. For purposes of this policy, reasonable and necessary travel time, including

overnight accommodations, shall include one day prior to and/or after a conference, meeting, seminar or other event provided:

139

2

Adopted 12/21/04; Rev. 9/20/05; 1/24/06; 11/20/07; 11/17/08; 11/16/09; 11/15/10; 11/21/2011; 11/19/12; 2/19/13; 11/18/13; 11/16/15; 12/4/17

a. The conference, organized educational activity, meeting, seminar, or other event, i.e., teleconference, is held more than 50 miles from the District Office, or

b. Upon General Manager review, circumstances for attendance warrant an overnight stay either the evening prior to and/or following conclusion of the event.

3. Deviation, including full or partial cancellation, from Board approved attendance

is subject to Personnel Committee review and the provisions set forth in Section I.B.2 of this policy. Following Committee review, should the matter be referred to the Board and the Board subsequently determines that prior authorization for attendance and/or payment of expenses be modified or rescinded, then those costs incurred by the District on behalf of the Director may be required to be repaid in accordance with the Board’s decision.

4. Ten-Day Monthly Limit

Water Code Section 20202 permits compensation for attendance, i.e., per diem, for up to a total of ten (10) days in any calendar month. However, by Resolution No. 01-13-592 and Ordinance No. 01-13-593, the Board of Directors adopted a 7-day limit on per diem per calendar month—capped at $150 per approved, compensable meeting.

C. Procedural Requirement

1. Written Compensation Request Required

Compensation for attendance at, and travel time to and from, conferences, organized educational activity, meetings, seminars or other approved events, i.e., teleconferences, will be paid only if the Board member submits a request for payment using the required District “Meeting and Expense Report Form” (Exhibit A), and provides the substantiation required by the District to ensure compliance with the Internal Revenue Service (IRS) Accountable Plan, as referenced in Exhibit B. In the event a Board member is not provided with a receipt or invoice from a vendor, or loses the receipt or invoice relating to such expenses, the Board member shall complete and submit to District staff the “Missing Receipt Affidavit Form,” as set forth in Exhibit G. Any reimbursement in excess of substantiated expenses must be refunded.

2. Board Approval

The required Board approval may be given either before or by ratification after the attendance and travel.

3. Disclosure of Compensation A copy of each Director’s completed “Meeting and Expense Report Form” shall,

when submitted for payment of per diem or reimbursement of expenses, be presented to the Board of Directors at their next regular meeting for approval and, upon request, will be made available to the public.

140

3

Adopted 12/21/04; Rev. 9/20/05; 1/24/06; 11/20/07; 11/17/08; 11/16/09; 11/15/10; 11/21/2011; 11/19/12; 2/19/13; 11/18/13; 11/16/15; 12/4/17

II. REIMBURSEMENT TO DIRECTORS FOR EXPENSES A. General Principles 1. Each member of the Board of Directors is encouraged to participate in those

outside activities and organizations that in the judgment of the Board furthers the interests of the District.

2. Expenses incurred by Directors in connection with those activities set forth in the Guidelines for Board Compensated Meetings and Activities (Exhibit C) are reimbursable as noted when authorized in advance or subsequently ratified by the Board, subject to the following:

a. If Board ratification (after-the-fact approval) is necessary, then all initial costs

for registration, travel, and attendance must be borne by the Director and use of a District-issued credit card for payment of any related expenses in advance of such approval is prohibited.

b. Upon Board ratification, the Director must submit a reimbursement request in

accordance with Section I,C,1 of this policy.

3. This policy is intended to result in no personal gain or loss to a Director.

a. All expenses must be reasonable and necessary, and Directors are encouraged to exercise prudence in all expenditures.

b. Reimbursement will be made only for actual disbursements and expenses that

qualify as reimbursable expenses. c. Expenses that are improper or otherwise not properly accounted for, or not

consistent with the prohibition against gifts of public funds set forth in the California Constitution, will not be reimbursed or accepted by the District.

d. Where such improper expenses have been paid by the District, they will be

promptly refunded to the District or deducted from monies otherwise due a Director in accordance with the Treasury “Safe Harbor” 120-day provision for an IRS Accountable Plan (Exhibit B).

B. Substantive Requirements

1. Transportation Expenses

Directors will be reimbursed for expenses incurred in traveling to and from Board authorized conferences, organized educational activity, meetings, seminars, and other events, i.e., teleconferences, attended on behalf of the District in their capacity as Directors, subject to Section 2 below and the provisions of this policy. Mileage reimbursement will be limited to attendance at those events held outside the District’s service area.

141

4

Adopted 12/21/04; Rev. 9/20/05; 1/24/06; 11/20/07; 11/17/08; 11/16/09; 11/15/10; 11/21/2011; 11/19/12; 2/19/13; 11/18/13; 11/16/15; 12/4/17

Map Quest or another comparable website that accurately provides distance information will be used to verify mileage from the District to the location of an event for which a request for mileage reimbursement is requested, with a 5-mile deviation being allowed in consideration of those instances when a given route might deviate from the norm due to traffic congestion, road construction, etc. If the deviation is greater than 5 miles, staff will verify the reason with the Director and note the explanation on the expense form.

2. Mode of Travel

a. Directors must use the most economical mode and class of transportation reasonably consistent with scheduling needs and space requirements and the most direct and time-efficient route.

i. When an extension in travel beyond the time required for District business

results in increased costs to the District, the Director shall be responsible for the increased costs and any other related expenses.

ii. Upon approval of the General Manager, exceptions to the above

requirements may be made for extenuating circumstances, such as, delayed or canceled flights, inclement weather, medical necessity, or personal hardship.

b. Directors are encouraged to discuss their travel needs as early as possible

with District staff, who may make all final travel arrangements in accordance with the following:

i. Authorized travel expenses include round-trip airfare where necessary,

actual reasonable expenses for ground transportation to and from airports, hotels, off-site meetings, restaurants, and automobile expense. Where possible, government or group rates should be used.

c. Automobile Expenses

i. Car Rental – Directors shall be reimbursed for the cost of a rental car in the conduct of District business provided all JPIA driver eligibility, insurance, and program requirements have been complied with (Exhibit E).

ii. Use of privately-owned vehicles – Directors shall be reimbursed for use of

privately-owned vehicles in the conduct of District business at the maximum allowable per mile rate established from time-to-time by the IRS, and subject to the provisions of this policy and provided all JPIA requirements have been complied with (Exhibit E).

ii.iii. Taxis and/or RideSharing – Directors are encouraged to use taxis and/or ridesharing services, such as Uber or Lyft, where feasible in order to reduce expenses and avoid parking fees. Such expenses are reimbursable and dDirectors shall present receipts to substantiate those expenses, as required under these Guidelines.

iii.iv. Use of District Vehicles – Directors shall not drive a District vehicle.

142

5

Adopted 12/21/04; Rev. 9/20/05; 1/24/06; 11/20/07; 11/17/08; 11/16/09; 11/15/10; 11/21/2011; 11/19/12; 2/19/13; 11/18/13; 11/16/15; 12/4/17

3. Meal Expense

Directors shall be reimbursed for the reasonable cost of meals, including tips, in conjunction with approved conferences, organized educational activity, meetings, seminars, and other events, i.e., teleconferences, and in the course of travel to and from subject to the following: a. Reimbursement must be in accordance with the criteria set forth in the

District’s Meal Expense Reimbursement Schedule/Guidelines, attached hereto as Exhibit F.

b. Expenses incurred by or for a spouse, family member, or guest of a Director

in connection with the Director’s service or travel will not be allowed or reimbursed.

4. Overnight Accommodations

a. Where reasonably possible, overnight accommodations shall be obtained in close proximity to the conference, seminar, or meeting site and at group rates published for such activity by the sponsor, if available. Directors shall strive to confirm their attendance at conferences early in the process to provide District staff with sufficient time to book accommodations to take advantage of early reservation discounts.

b. No reimbursement shall be made for overnight accommodations for

attendance at conferences, meetings, seminars, and other events held within 50 miles of the District office.

5. Parking

a. Airport Parking – Long-term parking is encouraged for travel exceeding 24

hours, subject to time constraints, safety concerns, and inclement weather.8

b. Hotel/Other Parking – Self-parking is encouraged, subject to time constraints, safety concerns, and inclement weather.

6. Communication Expenses

Telephone, facsimile, Internet, overnight, and/or courier expenses incurred in connection with approved District business will be reimbursed in accordance with this policy.

C. Procedural Requirements 1. Requests for Reimbursement

a. Upon incurring authorized expenses, Directors may submit a request for reimbursement. All requests for reimbursement shall be submitted, using the District’s Meeting and Expense Report Form, by the first Friday of the month following the month in which the expenses were incurred and shall

143

6

Adopted 12/21/04; Rev. 9/20/05; 1/24/06; 11/20/07; 11/17/08; 11/16/09; 11/15/10; 11/21/2011; 11/19/12; 2/19/13; 11/18/13; 11/16/15; 12/4/17

include substantiation required by Exhibit B, or the Missing Receipt Affidavit Form (Exhibit G).

b. Rather than reimbursing a Director for expenses after they have been

incurred, the District may pay such expenses directly, so long as such payments are made in accordance with this policy.

2. Use of District Credit Card

The District may authorize the issuance of a credit card in the Board member’sDirector’s name to be used solely for purposes of paying for approved travel and related expenses permitted pursuant to this policy or for security purposes to verify travel-related information. a. District issued credit cards shall remain in the District vault until such time as

needed. A Director may check out his/her credit card for District-approved business, travel, or other related expense a maximum of two business days (48 hours) in advance of scheduled use and should return the credit card to the District for safekeeping within two business days (48 hours) following the approved business use.

b. Exceptions to this requirement may be authorized by the General Manager or

designee.

3. Director Reports to Governing Board

At the District governing body meeting following the conference, organized educational activity, meeting, seminar, or other event, i.e., teleconference, attended at District expense, the Director attending shall provide a brief written, oral, or joint report on attendance and the subject matter. If multiple Directors attend the same function, a joint report may be made.

4. District Records of Expense Reimbursements

To implement the reporting requirements of Government Code Section 53065.5, the District shall disclose at least annually in a public record all reimbursements paid by the District to each Director for each individual charge of $100 or more.

III. GOVERNING BOARD REVIEW A. The Personnel Committee shall, on an annual basis in the fourth quarter of each

calendar year, review the following: 1. Exhibit A – Meeting and Expense Report Form 2. Exhibit C – Guidelines for Board Compensated Activities

3. Exhibit F – Meal Expense Reimbursement Schedule/Guidelines B. This policy in its entirety shall be reviewed by the Board of Directors on an annual

basis.

144

Exhibit "A"

Director Name DATE:

From Location To Location Miles Miles $

1 -$

2 -$

3 -$

4 -$

5 -$

6 -$

7 -$

8 -$

9 -$

10 -$

11 -$

12 -$

13 -$

Total Number of Miles: 0 X $0.545 $ -

Total Reimbursable Expenses $ -

I certify the above is correct and accurate to the best of my knowledge Total Meeting Compensation 0 X $150.00 per day $ -

TOTAL $ -

Date

**Directors are eligible for seven meeting days per month at $150 per day.

* Mileage is reimbursed at IRS Standard Business Mileage Rate $0.545

Mileage (assumed as round trip unless noted)

NAME:

Signature

November 2018

DIRECTOR EXPENSE FORM

No Date Title of Meeting / DescriptionPer Diem Request

145

Exhibit "A"

Date Event ItemType of

PaymentReceipt Amount

Amount Exceeding Allowable

CostReimbursement

AmountBreakfast -$ -$ Lunch -$ -$ Dinner -$ -$ Incidental -$ -$ Hotel Cost -$ -$ Transportation/Airfare -$ -$ Registration/Meeting -$ -$ Other -$ -$

Daily Total -$

Breakfast -$ -$ Lunch -$ -$ Dinner -$ -$ Incidental -$ -$ Hotel Cost -$ -$ Transportation/Airfare -$ -$ Registration/Meeting -$ -$ Other -$ -$

Daily Total -$


Daily Total -$


Daily Total -$

-$ Total Reimbursement

Director Expense Worksheet

146

Exhibit "C"

Organization/Affiliation Meeting, Event, or FunctionPer Diem

and Expenses

Expenses Only

Walnut Valley Water District

• All meetings and functions sponsored or conducted by the District• All Board-approved chair, member, and alternatecommittee and liaison

assignments (Joint Water Line Commission, Puente Basin Water Agency, Spadra Basin• Groundwater Sustainability Agency, TVMWD Committee and Board meetings, ACWA,• ACWA/JPIA) as provided• Trips for District related business• New Director attendance at all committee meetings during first year in office.• Director meetings with General Manager regarding substantive issues of

importance to the District, at the General Manager's discretion• One per diem per month for Board President (and/or alternate in President's

absence) to conduct District business.

X

Three Valleys Municipal Water DistrictAll relevant meetings and functions sponsored or conducted by this organization, other than TVMWD Committee and Board meetings attended by WVWD liasons as appointed by the WVWD president.

X

Other Water-Related Entities (MWD, Puente Basin Watermaster, WEF, etc.) All relevant meetings, functions, and tours, sponsored or conducted by those entities X

Cities and unincorporated areas served by the District (Includes Walnut, Diamond Bar, Industry, Pomona, Rowland Heights, and West Covina)

All relevant meetings and functions sponsored or conducted by these cities dealing with substantive issues of importance to the District. X

Los Angeles County Fourth District Consolidated Oversight Board All relevant meetings and functions sponsored or conducted by this organization. X

Association of California Water Agencies (ACWA) andACWA/Joint Powers Insurance Authority

Committee meetings, educational functions, and ACWA and ACWA/JPIA sponsored seminars and conferences X

American Water Works Association (AWWA) Committee meetings, educational functions, and AWWA-sponsored seminars and conferences XCalifornia Special Districts' Association andSpecial Districts Institute All relevant meetings, educational functions and CSDA-sponsored seminars and conferences X

Urban Water Institute All relevant meetings and functions sponsored or conducted by this organization XSan Gabriel Valley Water Association All relevant meetings and functions sponsored or conducted by this organization X

Regional Chamber of Commerce, San Gabriel Valley

All relevant meetings and functions sponsored or conducted by this organization dealing with substantive issues of importance to the District, i.e., Installation Programs, Governmental Affairs Committee meetings, quarterly business meetings, and meetings at which water-related presentations are made.

X

Regional Chamber of Commerce, San Gabriel Valley Mixers and other events sponsored by these organizations that are attended on a social basis. X

Other Community Organizations within District Boundaries All relevant meetings and functions sponsored or conducted by community organizations within District boundaries at which water-related presentations are made. X

Other Community and Governance Affiliations All relevant meetings and functions sponsored or conducted by community and governance organizations dealing with substantive issues of importance to the District X

Adopted: 2/21/06 Amended: 6/20/06, 1/16/07, 2/13/08, 3/17/09, 11/18/13 Reviewed: 11/20/06, 11/15/10, 2/22/11,11/19/12, 11/16/15

General Guidelines as set forth in California's Open Meeting Law: The Brown Act, Government Code Section 54950 et. seq ., and the District's Policy Guidelines for Ethical Conduct Regarding Board of Directors Compensation and Ethics (Section I.B.1): "A committee meeting or other Board approved meeting, conference, organized educational activity, seminar, or other event, i.e. teleconference, related to or informing the Board member on matters within the jurisdiction of the statutory powers of the District provided that the program or subject matter deals with the substantive issues of importance to the District." For meetings/events not listed below, the General Manager may also approve payment of per diem and/or expenses for 'meetings' in accordance with the provisions stated in The Brown Act, Government Code Section 54950 et. seq ., and the District's Policy Guidelines for Ethical Conduct Regarding Board of Directors Compensation and Expenses.

Walnut Valley Water DistrictGuidelines for Board Compensated Meetings and Activities

147

Exhibit “F”

Adopted 8/16/04

Revised 12/21/04, 1/24/06, 2/21/06, 11/20/06, 11/20/07, 11/17/08; 11/16/09, 11/15/10; 11/19/12;

11/18/13; 11/19/15

Meal Expense Reimbursement Schedule/Guidelines Board members and District employees shall be reimbursed for actual meal and incidental expenses incurred up to the following respective maximum amounts:

Breakfast Lunch Dinner Incidentals**

Directors* $25 $25 $40 $10 Employees* $25 $25 $40 $10

*Meals purchased in conjunction with a conference registration package are exempt from the limits.

When meals are included as part of a meeting registration fee, no additional meal allowance is permitted. Following are additional guidelines applicable to Directors and employees for business-related dining expense: Individual Dining 1. District Credit Card – The Director or employee shall submit the original credit card receipt (with

detail) within sixty (60) days of incurring the charge or may forfeit any related reimbursement entitlement, noting the business event. Should the charge exceed the authorized reimbursement entitlement, the District shall invoice the Director or employee for the excess balance.

2. Personal Credit Card/Cash/Check – The Director or employee shall submit the original credit card or cash/check receipt (with detail) within sixty (60) days of incurring the charge or may forfeit any related reimbursement entitlement, noting the business event when requesting reimbursement. Should the amount exceed the authorized reimbursement entitlement, the Director and/or employee will be reimbursed only for the authorized amount.

Two-Party Dining 1. District Credit Card – A Director or employee dining with a spouse or personal guest shall submit the

original credit card receipt (with detail) within sixty (60) days of incurring the charge or may forfeit any related reimbursement entitlement, noting the Director’s or employee’s portion of the meal expense, including appropriate tax and tip allocation. The Director or employee will subsequently be invoiced for the spouse’s or personal guest’s portion of the meal as well as for any amount exceeding the authorized reimbursement entitlement.

2. Personal Credit Card/Cash/Check – A Director or employee dining with a spouse or personal guest who pays the charges by personal credit card or cash/check shall submit the original credit card or original cash/check receipt (with detail) for reimbursement within sixty (60) days of incurring the charge or may forfeit any related reimbursement entitlement, noting the business event, the names of the attendees, and the Director’s or employee’s portion of the meal expense for which reimbursement is requested. Should the amount exceed the authorized reimbursement entitlement, the Director or employee will be reimbursed only for the authorized amount.

Three-Party (or more) Dining – Multiple Business, Family, and/or Personal Guests 1. District Credit Card – When dining in a party of three or more with a spouse, personal, and/or

business guest(s), the Director or employee shall submit the original credit card receipt (with detail) within sixty (60) days of incurring the charge or may forfeit any related reimbursement entitlement, noting the attendees’ names and the business event. The Director or employee will be invoiced for the spouse’s and/or personal guest’s portion of the meal as well as any charges exceeding the authorized reimbursement entitlement.

2. Personal Credit Card/Cash/Check – When dining in a party of three or more with a spouse, personal, and/or business guest(s), and the Director or employee pays the charges by personal credit card or cash/check, they shall submit the original credit card or cash/check receipt (with detail) within sixty (60) days of incurring the charge or may forfeit any related reimbursement entitlement, noting the attendees, business event, the names of the Directors and/or employees for whom reimbursement is being requested, and the amount. Should the amount exceed the authorized reimbursement entitlement, the Director or employee will be reimbursed only for the authorized amount.

- 1 -

148

Exhibit “F”

Adopted 8/16/04

Revised 12/21/04, 1/24/06, 2/21/06, 11/20/06, 11/20/07, 11/17/08; 11/16/09, 11/15/10; 11/19/12;

11/18/13; 11/19/15

In-Room Dining Generally no receipts are available; therefore, the Director or employee shall note on the hotel bill who the charges were for and the type of meal, i.e., breakfast, lunch, or dinner. The Director or employee will be invoiced for all spouse and/or guest related charges, as well as any amount exceeding the authorized reimbursement entitlement. Shared Meals Any shared meal between a Director or employee and a spouse or guest will normally be treated as a single business meal unless otherwise noted. If the shared food item (meal, salad, etc.) is designated on the dining menu as serving “2” people, then the cost/reimbursement is subject to the two-party dining guidelines. **Incidentals A Director or employee shall submit a receipt, if available, for incidentals. Should the amount exceed the authorized reimbursement entitlement (currently $10.00), the Director or employee will be reimbursed only for the authorized amount. Missing Receipt In the event a Board member is not provided with a receipt or invoice from a vendor, or loses the receipt or invoice relating to such expenses, the Board member shall complete and submit to District staff the “Missing Receipt Affidavit Form,” as set forth in Exhibit G. These Meal Expense Reimbursement Schedule/Guidelines shall be reviewed on an annual basis in the fourth quarter of each calendar year.

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149

Exhibit “G”

Adopted-

WALNUT VALLEY WATER DISTRICT Missing Receipt Affidavit Form

Please retain this form with the District’s financial records in case of an audit.

Name (printed): _____________________________

I certify that I made the purchase shown below for District purposes but do not have a receipt due to: (check all that apply)

Vendor did not provide a detailed receipt.

I had a receipt but cannot locate it.

I have a receipt, but it is not readable (e.g. not in English and/or not legible). This document is provided in order to describe the items purchased.

Order was placed via telephone, fax, or internet, and vendor has not supplied an invoice.

Vendor Name

City

Date of Purchase

Detailed Description of Purchase (Attach additional sheets if necessary.) Item Amount

Total Purchase Amount $

This document is in lieu of an invoice or receipt for this transaction. I certify that all items listed above (and on the attached, if applicable) were purchased and received for District business. Director’s Signature: _____________________________ Date: ____________________ NOTE: All information is required and must be typed or printed in ink. Use one affidavit per receipt.

150

WVWD – Staff Report TO: Board of Directors FROM: General Manager SUBMITTED BY: Director of Administration DATE: October 15, 2018 SUBJECT: Standing Committee Selection Process Annual Review


Recommendation That the Board of Directors adopt the proposed amendments to the District’s Standing Committee Selection Process policy. Background Information As contained in the District’s Standing Committee Selection Process:

The Standing Committee Selection Process shall be reviewed by the Personnel Committee on an annual basis.

Staff recommends the proposed changes as outlined in red.

151

X:\Bdmtgs\Board Docs-Staff Reports\2018\October\PER Standing Committee Process Nov 2015.doc Approved 11/16/04 Amended 12/21/04, 7/23/08, 5/26/09,11/17/14 Reviewed 11/15/06, 11/20/06, 12/07, 5/09, 11/21/11;11/14/12; 11/18/13;11/19/15

1

WALNUT VALLEY WATER DISTRICT Standing Committee Selection Process

The Standing Committee Selection Process shall include the following provisions: 1. After the annual reorganization of officers, Board Members shall select their preferred

standing committee assignments in the following order:

President 1st Vice President 2nd Vice President Assistant Treasurer Director

Newly elected or appointed directors shall not serve as chair of a committee during his/her first year in office, unless this provision is waived by the Board of Directors.

2. The process to be observed for filling standing committee assignments: The incoming President will select a committee position, with each member following suit in a rotational order as identified under Section 1 above. Thereafter, until all positions are filled, the process will continue. Each Board member may select any open position, chair, committee member, or alternate, based on preference, subject to the exception for new directors during the first year of their service on the Board. If a Board member does not wish to select any position that remains when it is his/her turn, that Board member may pass and the choice moves to the next Board member in order of rotation until all the positions are filled. Any positions not filled through this process shall be appointed by the incoming President. In the event that two of the three members that constitute a particular committee cannot attend the monthly meeting(s), the Board President may contact other Board members to appoint them on an as-needed basis.

Any committee vacancy created as a result of a Director resigning from the committee or leaving office shall be filled in the following manner:

a. If the chair position is vacated, the Director filling the committee member position will

ascend to the chair position, subject to the exception for new directors during the first year of their service on the Board (unless waived by the Board of Directors). If neither member is eligible, then the position of “chair” will be appointed by the president.

b. If the committee member position is vacated, the alternate Director will ascend to the

member position. c. If the alternate committee member position is vacated, the President shall appoint a

replacement alternate committee member. 3. The following committee oversight responsibilities to be updated in the next revision of the

District’s Policy GuidelinesListed below are the District standing committees with their corresponding oversight responsibilities:

Engineering and Special Projects – Operation, protection and maintenance of District facilities. Initiation of construction programs. Long-range planning.

152

X:\Bdmtgs\Board Docs-Staff Reports\2018\October\PER Standing Committee Process Nov 2015.doc Approved 11/16/04 Amended 12/21/04, 7/23/08, 5/26/09,11/17/14 Reviewed 11/15/06, 11/20/06, 12/07, 5/09, 11/21/11;11/14/12; 11/18/13;11/19/15

2

Standing Committee Selection Process Page 2

Finance – Annual budget, quarterly budget reports, fiscal master plan, audits, investments, risk management, insurance, revenues and expenses. Personnel – Staffing and organizational issues, employment related policies, Terms and Conditions of Employment, and Board Policies and Ethics issues.

Public Information/Community Relations and Legislative Action – Public information goals, objectives and methods, community relations programs, and Best Management Practiceswater conservation programs and practices; and District liaison for legislative activities relating to the water industry.

4. Consistent with long-standing District practice, committee meetings will be scheduled by

District staff during regular working hours whenever possible, with consideration given to the committee chair’s schedule.

This Standing Committee Selection Process shall be reviewed by the Personnel Committee on an annual basis.

153

WVWD – Staff Report TO: Board of Directors FROM: General Manager SUBMITTED BY: Assistant General Manager DATE: October 15, 2018 SUBJECT: Fund Status of Facilities Use Charges


Recommendation That the Board of Directors receive, approve, and file the enclosed annual Acreage Supply, Reservoir Capacity, and Water Supply Charges (Capital Improvement Fees) report as presented, which will then be made available to the public upon request. Background Information Government Code §66006 stipulates that, if a local agency requires the payment of a fee in connection with the approval of a development project, it must make the following information available to the public: Brief description of the type of fee Amount of the fee and interest earned Beginning and ending balances in each of the funds Identification of each public improvement on which fees were expended and the amount of

the expenditures on each improvement Identification of the approximate date the construction of the public improvement will

commence The District’s Acreage Supply, Reservoir Capacity, and Water Supply Charges fall under the category of capital improvement fees and, as required, the attached report providing the beginning and ending balances in each of these funds, including income, interest, and disbursements, will continue to be available in the General Manager’s office for public review upon request. Attachment: Acreage Supply, Reservoir Capacity, and Water Supply Charges report

154

TOTAL

Acreage Supply ChargeJuly 1, 2017 Balance 1,306,377 Revenue: Developers 508,208 Revenue: Interest Income 19,799 Expenses (See Detail) (2,270) Due To/From ASC -

June 30, 2018 ASC Balance 1,832,114$

TOTAL

Reservoir Capacity ChargeJuly 1, 2017 Balance 3,107,735 Revenue: Developers 559,990 Revenue: Interest Income 45,929 Expenses (See Detail) (641,999) Due To/From RCC -

June 30, 2018 RCC Balance (Per Cash & Investment Reports) 3,071,655 Pending Transfer: Interest Income RCC to RCCTH -

June 30, 2018 Adjusted RCC Balance 3,071,655

Reservoir Capacity Charge-Tres HermanosJuly 1, 2017 Balance 324,785 Revenue: Developers - Revenue: Interest Income 4,902 Expenses (See Detail) -

June 30, 2018 RCC TH Balance (Per Cash & Investment Reports) 329,687 Pending Transfer: Interest Income RCC to RCCTH -

June 30, 2018 Adjusted RCC Balance 329,687

June 30, 2018 Combined RCC & RCC Tres Hermanos Balances 3,401,342$

TOTAL

Water Supply ChargeJuly 1, 2017 Balance 958,377 Revenue: Developers 1,071,453 Revenue: Interest Income 14,489 Expenses (See Detail) - Due To/From WSC -

June 30, 2018 WSC Balance 2,044,319.00

WALNUT VALLEY WATER DISTRICTReview of Capital Improvement Fees

Acreage Supply Charge & Acreage Supply Charge-Tres HermanosReservoir Capacity Charge & Reservoir Capacity Charge-Tres Hermanos

June 30, 2018Water Supply Charge

155

*2017-2018 Expenses ASC RCC WSC17-3492Pump Addition Enhancement 17-18 17,405

17-3493Parker Canyon/Armitos Chlorine Analyzers/Active Mixing System 624,594

18-35178"RW Main Loop Lemon/Lycoming 2,270

Total Expenses 2,270$ 641,999$ -$

June 30, 2018 Balances 1,832,114$ 3,071,655$ 2,044,319$ 2018-2019 Budgeted Expenses ASC RCC WSC18-3517810 Zone Improvements 270,000

Diamond Bar Pump Station Emergency Generator 100,000

17-3492Pump Addition Enhancement 17-18 232,595

17-3493Parker Canyon/Armitos Chlorine Analyzers/Active Mixing System 25,407

Pathfinder Chlorine Analyzers/Active Mixing Systems 700,000

Minor Recycled Water System Improvements 30,000

Total Budgeted Expenses 270,000 1,058,002 30,000 June 30, 2019 Projected Balances 1,562,114$ 2,013,653$ 2,014,319$

156

WVWD – Staff Report TO: Board of Directors FROM: General Manager SUBMITTED BY: Assistant General Manager DATE: October 15, 2018 SUBJECT: Consideration of Wholesale Potable Water Rate Adjustment


Recommendation Request the Board of Directors approve the following adjustments to the District’s Wholesale Potable Water Rates for Suburban Water Systems and Golden State Water Company effective January 1, 2019.

1. Suburban Water Systems (Badillo Grand Line) a. Monthly Base Rate $8,663.00 b. Commodity Rate

Tier I $1,060.00 Tier II $1,146.00

2. Golden State Water Company (Grand Avenue Connection) a. Monthly Base Rate $725.00 b. Commodity Rate

Tier I $1,156.00 Tier II $1,242.00

The wholesale rates have been updated to reflect increases in the MWD/TVMWD rates and fees (effective January 2019), along with certain internal costs related to the operation and maintenance of each connection. Attachments Suburban Water Systems – Wholesale Potable Water Rate Golden State Water Company – Wholesale Potable Water Rate

157

TIER I TIER II TIER I TIER IIWATER RATEMWD Water Cost 1,015.00 1,101.00 1,050.00 1,136.00TVMWD Surcharge (5.00) (5.00) (10.00) (10.00)Operations & Maintenance 0.00 0.00 0.00 0.00Badillo/Grand Reserve 1.00 1.00 1.00 1.00Depreciation Charge 19.00 19.00 19.00 19.00

TOTAL WATER COST PER ACRE-FOOT $1,030.00 $1,116.00 $1,060.00 $1,146.00

BASE RATE(MWD) Capacity Charge(TVMWD) Water Use Charge(TVMWD) Connected CapacityO&M Expenses

TOTAL MONTHLY BASE RATE $9,023.00

5,801.70744.34928.86

$8,663.45

$8,663.00

5,881.451,073.11

9,022.94

Walnut Valley Water DistrictSuburban Water Systems - Wholesale Potable Water Rate

January - December 2019

January 1, 2019Current Rates

886.821,181.56 1,188.55

158

TIER I TIER II TIER I TIER IIWATER RATEMWD Water Cost $1,015.00 $1,101.00 $1,050.00 $1,136.00TVMWD Surcharge (5.00) (5.00) (10.00) (10.00)Operations & Maintenance 0.00 0.00 0.00 0.00Badillo/Grand Reserve 1.00 1.00 1.00 1.00Depreciation Charge 19.00 19.00 19.00 19.00Pumping 91.48 91.48 95.83 95.83

1,121.48 1,207.48 1,155.83 1,241.83

COST PER ACRE FOOT $1,121.00 $1,207.00 $1,156.00 $1,242.00

BASE RATE(MWD) Capacity Charge(TVMWD) Water Use Charge(TVMWD) Connected CapacityO&M Expenses6-inch Meter Charge

TOTAL MONTHLY BASE RATE

Walnut Valley Water DistrictGolden State Water Company - Wholesale Potable Water Rate

January - December 2019

103.10131.93489.65

724.68

$725.00

January 1, 2019

0.000.00

131.15

Current Rates

0.000.00

98.44

476.74

706.33

$706.00

159

WVWD – Staff Report TO: Board of Directors FROM: General Manager SUBMITTED BY: Assistant General Manager DATE: October 15, 2018 SUBJECT: Unclaimed Funds Policy


Recommendation That the Board of Directors approve the revised Unclaimed Funds Policy.

Background Information The Board adopted the Unclaimed Funds Policy in January 2016. Generally, the District can claim any payments that have remained uncashed for a period of three years or more. In order to claim these funds, the District must follow the procedures outlined in the policy, which is consistent with the requirements of Government Code Sections 50050 through 50057. The original policy required that the District publish a notice in the newspaper of general circulation. This notice was to include the Customer Name, Check Amount, and Check Date of any outstanding payments. As you can imagine, with hundreds of uncashed payments, publishing a notice in the newspaper would be quite cumbersome and expensive. In addition, staff has always been reticent of publishing former customer names in the newspaper. Staff, working with legal counsel, has developed a modified approach that still complies with the requirements of law, while making the process easier to manager, less expensive, and allowing some degree of control over the public listing of customer names. The major change staff is proposing centers around the information the District would include in the required public notice. Staff is recommending that the public notice contain a reference to a searchable listing located on our website, instead of including in that published notice a listing of customer names. The listing on our website would include the Customer’s Name, Check Amount, and Check Date. The website would also include the appropriate forms and instructions necessary for a customer or former customer to claim such funds. The policy has also been updated to include the designated positions with the authority to release any payments for claims that are received and approved. It should be noted that the District will continue to utilize every reasonable resource at its disposal to locate former customers prior to retaining any such funds for the District’s general use. Attachments Unclaimed Funds Policy Unclaimed Funds Claim Form Unclaimed Funds – Claim Rejection Form Sample Unclaimed Notice

160

WALNUT VALLEY WATER DISTRICT Policy No: Management Policies and Procedures Manual Author: Director of Finance Page 1 of 4 Effective Date: 10/15/18 General Manager Signature Unclaimed Funds

I. PURPOSE

To establish the proper disposition and accounting for unclaimed money. Unclaimed money may include but is not limited to stale dated checks (i.e., a District check that is not deposited by the payee or otherwise paid within six (6) months of the date of the check), bond coupons, trust funds, deposits held for various purposes by District departments, and overpayments for District services. Government Code Sections 50050 through 50057 provide the authority for this policy.

II. OVERVIEW

A. Funds which are not the property of the District that remain unclaimed for a period of more than three (3) years from the date on which such funds are no longer properly held by the District will become the property of the District if not claimed or if no verified complaint is filed and served, on or before the specific date stated in the public notice that is published in a newspaper of general circulation in accordance with Section III (A), below.

B. Any individual funds that are less than $15.00 or any funds regardless of amount for which the depositor’s name is not known shall become the property of the District upon the approval of the District’s Board of Directors at a duly noticed and held Board of Directors’ meeting, and may be transferred to the District’s General Fund of the District one year after such action is taken by the Board of Directors and without the need to publish notice.

III. POLICY:

A. Unclaimed funds that have been held by the District for at least three years from the date on which such funds are no longer properly held by the District and are over $15.00 will be identified on an annual basis.

B. For funds that have been unclaimed for at least three years from the date on which such funds are no longer properly held by the District, a notice will be published once a week for two consecutive weeks in a newspaper of general circulation. The notice shall state the individual or business name (original depositor for receipts, original vendor for stale-dated checks), the amount of money, the fund in which the money is held, and that the money will become the property of the District on a specific date (not less than 45 nor more than 60 days after the date of first publication). The notice shall include a reference to a searchable listing on the District’s website.

C. At any time prior to the date on which the funds shall become the property of the District, as specified in the notice the District shall publish, a person or entity claiming to be entitled to such funds may file a claim for the funds with the District’s Director of Finance District on the form the District shall make available. The claim form (see attached) must contain the claimant’s name, address, telephone number, amount being claimed, tax identification number, and grounds for the claim, and must be submitted and accepted before the date identified in the notice as the date the funds become the

161

WALNUT VALLEY WATER DISTRICT Policy No: Management Policies and Procedures Manual Author: Director of Finance Page 2 of 4 Effective Date: 10/15/18 General Manager Signature

property of the District. The Director of FinanceGeneral Manager, or his/her designee, can require additional information to help substantiate the claim and to establish the authority of the claimant to receive the funds.

D. The Director of FinanceThe General Manager, Assistant General Manager, or Accounting Manager may release the unclaimed funds to the person or entity claiming to be entitled to such funds, their heir, beneficiary, or duly appointed representative if claimed prior to the date the funds become the property of the District and satisfactory proof has been submitted.

162

Attachment 1 – Unclaimed Funds - Claim Form

WALNUT VALLEY WATER DISTRICT UNCLAIMED FUNDS – CLAIM FORM

Return completed form to: Walnut Valley Water District ‐ Finance Department

271 S. Brea Canyon Road, Walnut, CA 91789 Pursuant to California Government Code Section 50052, I hereby file a claim for unclaimed funds in the amount of $ , as published on the Walnut Valley Water District website.

I am the Payee listed on your website I am an Heir of the following Deceased Payee: __________________________________

I am an Agent/Officer for the following Business listed on your website:_______________

Individual Name (Printed) Taxpayer I.D. or Social Security No. Service Address Current Mailing Address Current Telephone Contact No.

I hereby certify, under penalty of perjury, that the above information is true and correct and is being submitted to the Walnut Valley Water District (District) to substantiate my claim to the monies paid to the District. I further certify that I have the authority and right to claim and receive payment of these monies and hereby release the District, its directors, employees, representatives, attorneys and agents from all liability and further obligation with respect to this claim.

Individual (Signature) Date

PROVIDE THE FOLLOWING DOCUMENTS: Individuals A copy of current photo identification for each claimant Death Certificate (if making a claim regarding monies deposited by a deceased payee) Businesses

If the company merged with another company, a copy of the merger agreement If the company was dissolved, a copy of the articles of dissolution.

163

Attachment 2 – Claim Rejection Form

WALNUT VALLEY WATER DISTRICT UNCLAIMED FUNDS ‐ CLAIM REJECTION FORM

The District has rejected the unclaimed funds claim of: Vendor or Individual Name:

Taxpayer I.D. or Social Security Number

Address:

City/State/Zip Code: Original Check Date:

Original Check Amount: The grounds on which this claim has been rejected are: Under California Government Code Section 50052, you have the right to file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within Los Angeles County. A copy of the complaint and the summons issued thereon must be served within thirty (30) days of receiving this notice of rejection. Upon being served, the District’s Treasurer will withhold the disputed amount from being released until a decision is rendered by the court.

District Representative Date

164

NOTICE OF UNCLAIMED FUNDS

PLEASE TAKE NOTICE, that the Walnut Valley Water District has posted on its website, at the below internet address, a searchable listing of individuals or businesses that have unclaimed money currently held by the District, and the amounts being held for each such individual or business. These funds are being held in the District’s Unclaimed Water Refund account, but will become the property of the District and will be transferred to the District’s General Fund on [date 45-60 days after first publication date], in accordance with Government Code Section 50050. To search for unclaimed money, or for instructions on completing a Claim Form please visit the District’s website at WWW.WVWD.COM. If a customer believes they have monies being held by the District that are not confirmed through the search or for assistance on searching for unclaimed funds you may contact the District by email: [email protected], or by calling our office at 909-595-12687554.

165

http://www.wvwd.com/


MONTHLY ACCOUNT STATEMENT

Walnut Valley Water District Consolidated - Account #10076

SEPTEMBER 1, 2018 THROUGH SEPTEMBER 30, 2018

Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures.

CHANDLER ASSET MANAGEMENTchandlerasset.com

Chandler Team:For questions about your account, please call (800) 317-4747,or contact [email protected]

CustodianBank of New York Mellon Trust CompanyAmy Kung(213) 630-6374

166

ACCOUNT SUMMARYBeg. Values

as of 8/31/18End Values

as of 9/30/18

Market Value 47,301,726 45,946,479Accrued Interest 190,021 190,825Total Market Value 47,491,747 46,137,304Income Earned 70,860 70,715Cont/WDPar 47,936,020 46,676,378Book Value 47,846,853 46,589,138Cost Value 47,821,926 46,549,816

TOP ISSUERS

Local Agency Investment Fund 27.0%Government of United States 18.4%Federal Home Loan Bank 10.3%Federal National Mortgage Assoc 9.9%Bank Cash Account 6.6%Federal Home Loan Mortgage Corp 6.4%Federal Farm Credit Bank 3.6%Wal-Mart Stores 1.1%

Total 83.3%

PORTFOLIO CHARACTERISTICS

Average Modified Duration 1.51

Average Coupon 1.77%

Average Purchase YTM 1.83%

Average Market YTM 2.48%

Average S&P/Moody Rating AA/Aa1

Average Final Maturity 1.58 yrs

Average Life 1.58 yrs

CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION

Portfolio SummaryAs of September 30, 2018

Walnut Valley Water District Consolidated

Account #10076

PERFORMANCE REVIEWAnnualized

TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS

Execution Time: 10/2/2018 5:36:26 AMChandler Asset Management - CONFIDENTIAL Page 1167

ACCOUNT SUMMARYBeg. Values

as of 8/31/18End Values

as of 9/30/18

Market Value 31,207,706 30,520,773Accrued Interest 148,464 128,225Total Market Value 31,356,170 30,648,998Income Earned 49,807 49,672Cont/WD -659,313Par 31,842,000 31,250,672Book Value 31,752,834 31,163,432Cost Value 31,727,906 31,124,110

TOP ISSUERS

Government of United States 27.7%Federal Home Loan Bank 15.5%Federal National Mortgage Assoc 14.9%Federal Home Loan Mortgage Corp 9.7%Federal Farm Credit Bank 5.4%Wal-Mart Stores 1.7%Bank of New York 1.6%Intl Bank Recon and Development 1.6%

Total 78.0%

PORTFOLIO CHARACTERISTICS

Average Modified Duration 2.27

Average Coupon 1.82%

Average Purchase YTM 1.90%

Average Market YTM 2.88%

Average S&P/Moody Rating AA/Aa1

Average Final Maturity 2.38 yrs

Average Life 2.37 yrs

CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION

Portfolio SummaryAs of September 30, 2018


Account #10074

PERFORMANCE REVIEWAnnualized

TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 7/31/2009Walnut Valley Water District -0.15% 0.27% 0.15% -0.15% 0.10% 0.66% 0.98% N/A 1.39%ICE BAML 1-5 Yr US Treasury/Agency Index* -0.27% 0.06% -0.18% -0.55% -0.29% 0.31% 0.74% N/A 1.14%*ICE BAML 1-3 Yr US Treasury Index to 8/31/10


Holdings ReportAs of September 30, 2018


Account #10076

CUSIP Security Description Par Value/Units Purchase DateBook Yield

Cost ValueBook Value

Mkt PriceMkt YTM

Market ValueAccrued Int.

% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

AGENCY

3133EFSJ7 FFCB Note1.3% Due 12/14/2018

675,000.00 12/29/20151.41%

672,860.25674,853.39

99.812.24%

673,693.202,608.13

1.47%(1,160.19)

Aaa / AA+AAA

0.210.20

3133782M2 FHLB Note1.5% Due 3/8/2019

575,000.00 02/13/20151.45%

576,190.25575,127.07

99.632.35%

572,879.98551.04

1.24%(2,247.09)

Aaa / AA+AAA

0.440.43

3137EADG1 FHLMC Note1.75% Due 5/30/2019

575,000.00 Various1.73%

575,369.38575,057.04

99.502.51%

572,127.883,382.12

1.25%(2,929.16)

Aaa / AA+AAA

0.660.65

3135G0ZE6 FNMA Note1.75% Due 6/20/2019

600,000.00 07/28/20141.80%

598,680.00599,806.47

99.452.52%

596,712.602,945.83

1.30%(3,093.87)

Aaa / AA+AAA

0.720.71

3137EADK2 FHLMC Note1.25% Due 8/1/2019

600,000.00 09/05/20141.77%

585,342.00597,507.81

98.912.58%

593,444.401,250.00

1.29%(4,063.41)

Aaa / AA+AAA

0.840.82

3135G0ZG1 FNMA Note1.75% Due 9/12/2019

575,000.00 Various1.86%

571,960.88574,417.36

99.182.63%

570,264.30531.07

1.24%(4,153.06)

Aaa / AA+AAA

0.950.93

3137EADM8 FHLMC Note1.25% Due 10/2/2019

600,000.00 12/08/20141.77%

585,564.00596,994.55

98.622.65%

591,732.603,729.17

1.29%(5,261.95)

Aaa / AA+AAA

1.010.98

3135G0A78 FNMA Note1.625% Due 1/21/2020

600,000.00 03/15/20161.41%

604,698.00601,596.12

98.582.74%

591,461.401,895.83

1.29%(10,134.72)

Aaa / AA+AAA

1.311.28

313378J77 FHLB Note1.875% Due 3/13/2020

650,000.00 05/18/20161.26%

664,885.00655,648.61

98.672.81%

641,367.35609.38

1.39%(14,281.26)

Aaa / AA+NR

1.451.42

3137EADR7 FHLMC Note1.375% Due 5/1/2020

600,000.00 05/26/20151.61%

593,323.20597,856.01

97.822.79%

586,932.003,437.50

1.28%(10,924.01)

Aaa / AA+AAA

1.591.54

313383HU8 FHLB Note1.75% Due 6/12/2020

500,000.00 06/23/20151.81%

498,645.00499,537.13

98.192.84%

490,970.502,649.31

1.07%(8,566.63)

Aaa / AA+NR

1.701.65

3133EEW55 FFCB Note1.8% Due 6/15/2020

600,000.00 06/25/20151.82%

599,424.00599,801.96

98.322.81%

589,929.603,180.00

1.29%(9,872.36)

Aaa / AA+AAA

1.711.66

3133EE5Z9 FFCB Note1.75% Due 8/4/2020

402,000.00 12/11/20151.67%

403,515.54402,602.10

98.082.83%

394,275.171,113.88

0.86%(8,326.93)

Aaa / AA+AAA

1.851.79

3135G0F73 FNMA Note1.5% Due 11/30/2020

600,000.00 12/11/20151.72%

593,622.00597,215.78

97.192.85%

583,139.403,025.00

1.27%(14,076.38)

Aaa / AA+AAA

2.172.10

3130A3UQ5 FHLB Note1.875% Due 12/11/2020

600,000.00 02/12/20161.30%

616,098.00607,335.57

97.762.94%

586,542.003,437.50

1.28%(20,793.57)

Aaa / AA+NR

2.202.12

3135G0H55 FNMA Note1.875% Due 12/28/2020

600,000.00 02/12/20161.28%

616,818.00607,751.23

97.872.86%

587,229.002,906.25

1.28%(20,522.23)

Aaa / AA+AAA

2.252.17




Account #10076



Mkt PriceMkt YTM


% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

AGENCY

3130A7CV5 FHLB Note1.375% Due 2/18/2021

650,000.00 03/15/20161.64%

642,018.00646,133.30

96.582.87%

627,739.451,067.53

1.36%(18,393.85)

Aaa / AA+AAA

2.392.32

313382K69 FHLB Note1.75% Due 3/12/2021

625,000.00 03/16/20161.68%

627,225.00626,091.72

97.372.87%

608,553.13577.26

1.32%(17,538.59)

Aaa / AA+AAA

2.452.37

3137EAEC9 FHLMC Note1.125% Due 8/12/2021

650,000.00 08/24/20161.30%

644,559.50646,861.13

95.172.89%

618,572.50995.31

1.34%(28,288.63)

Aaa / AA+AAA

2.872.78

3135G0N82 FNMA Note1.25% Due 8/17/2021

625,000.00 09/28/20161.28%

624,075.00624,454.75

95.522.88%

597,021.88954.86

1.30%(27,432.87)

Aaa / AA+AAA

2.882.79

3135G0S38 FNMA Note2% Due 1/5/2022

550,000.00 01/31/20172.01%

549,802.00549,868.81

97.112.93%

534,122.602,627.78

1.16%(15,746.21)

Aaa / AA+AAA

3.273.11

313378CR0 FHLB Note2.25% Due 3/11/2022

800,000.00 Various1.96%

810,717.00807,606.98

97.742.94%

781,898.401,000.00

1.70%(25,708.58)

Aaa / AA+NR

3.453.28

3135G0T94 FNMA Note2.375% Due 1/19/2023

500,000.00 04/11/20182.70%

492,845.00493,551.06

97.493.00%

487,433.502,375.00

1.06%(6,117.56)

Aaa / AA+AAA

4.314.03

313382AX1 FHLB Note2.125% Due 3/10/2023

450,000.00 04/11/20182.66%

439,069.50440,118.05

96.393.00%

433,773.90557.81

0.94%(6,344.15)

Aaa / AA+AAA

4.444.19

Total Agency 14,202,000.00 1.68%14,187,306.5014,197,794.00 2.76%

13,911,816.7447,407.56

30.26%(285,977.26)

Aaa / AA+AAA

1.931.86

CASH

90CASH$00 Cash Custodial Cash Account 3,023,639.82 Various0.00%

3,023,639.823,023,639.82

1.000.00%

3,023,639.820.00

6.55%0.00

NR / NRNR

0.000.00

Total Cash 3,023,639.82 N/A3,023,639.823,023,639.82 0.00%

3,023,639.820.00

6.55%0.00

NR / NRNR

0.000.00

LAIF

90LAIF$00 Local Agency Investment Fund State Pool

12,402,066.17 Various2.09%

12,402,066.1712,402,066.17

1.002.09%

12,402,066.1762,599.52

27.02%0.00

NR / NRNR

0.000.00

Total LAIF 12,402,066.17 2.09%12,402,066.1712,402,066.17 2.09%

12,402,066.1762,599.52

27.02%0.00

NR / NRNR

0.000.00




Account #10076



Mkt PriceMkt YTM


% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

MONEY MARKET FUND FI

60934N807 Federated Investors Govt Oblig Fund Inst.

8,671.88 09/30/20181.66%

8,671.888,671.88

1.001.66%

8,671.880.00

0.02%0.00

Aaa / AAAAAA

0.000.00

Total Money Market Fund FI 8,671.88 1.66%8,671.888,671.88 1.66%

8,671.880.00

0.02%0.00

Aaa / AAAAAA

0.000.00

SUPRANATIONAL

459058FY4 Intl. Bank Recon & Development Note2% Due 1/26/2022

500,000.00 09/21/20171.95%

501,010.00500,773.44

96.743.04%

483,706.001,805.56

1.05%(17,067.44)

Aaa / NRAAA

3.333.17

4581X0CZ9 Inter-American Dev Bank Note1.75% Due 9/14/2022

500,000.00 08/14/20182.91%

477,871.50478,554.66

95.183.05%

475,919.00413.19

1.03%(2,635.66)

NR / NRAAA

3.963.77

Total Supranational 1,000,000.00 2.42%978,881.50979,328.10 3.04%

959,625.002,218.75

2.08%(19,703.10)

Aaa / NRAAA

3.643.47

US CORPORATE

36962G7G3 General Electric Capital Corp Note2.3% Due 1/14/2019

400,000.00 03/19/20141.97%

405,928.00400,354.26

99.902.63%

399,605.201,967.78

0.87%(749.06)

A2 / AA

0.290.29

30231GAP7 Exxon Mobil Corp Note1.708% Due 3/1/2019

415,000.00 03/16/20161.63%

415,917.15415,128.47

99.682.47%

413,687.77590.68

0.90%(1,440.70)

Aaa / AA+NR

0.420.42

89236TBP9 Toyota Motor Credit Corp Note2.125% Due 7/18/2019

350,000.00 12/11/20151.97%

351,844.50350,408.01

99.582.66%

348,534.201,508.16

0.76%(1,873.81)

Aa3 / AA-A

0.800.78

68389XAX3 Oracle Corp Note2.25% Due 10/8/2019

400,000.00 05/18/20161.47%

410,192.00403,074.96

99.502.75%

398,000.804,325.00

0.87%(5,074.16)

A1 / AA-A+

1.020.99

40428HPN6 HSBC USA Inc Note2.375% Due 11/13/2019

250,000.00 02/12/20162.59%

248,102.50249,432.42

99.342.98%

248,345.002,276.04

0.54%(1,087.42)

A2 / AAA-

1.121.09

713448DC9 Pepsico Inc. Callable Note Cont 9/14/20202.15% Due 10/14/2020

325,000.00 10/20/20152.08%

326,010.75325,403.62

98.402.97%

319,789.933,241.42

0.70%(5,613.69)

A1 / A+A

2.041.96

369550BE7 General Dynamics Corp Note3% Due 5/11/2021

350,000.00 05/23/20183.16%

348,446.00348,631.27

99.473.21%

348,128.204,083.33

0.76%(503.07)

A2 / A+NR

2.612.47




Account #10076



Mkt PriceMkt YTM


% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

US CORPORATE

857477AV5 State Street Bank Note1.95% Due 5/19/2021

400,000.00 05/18/20162.01%

398,884.00399,411.37

96.753.25%

387,005.602,860.00

0.85%(12,405.77)

A1 / AAA-

2.642.52

69371RN44 Paccar Financial Corp Note1.65% Due 8/11/2021

400,000.00 05/09/20172.40%

388,012.00391,928.18

95.333.38%

381,304.40916.67

0.83%(10,623.78)

A1 / A+NR

2.872.75

06406RAA5 Bank of NY Mellon Corp Callable Note Cont 1/7/20222.6% Due 2/7/2022

500,000.00 06/20/20172.35%

505,305.00503,818.07

97.523.39%

487,596.501,950.00

1.06%(16,221.57)

A1 / AAA-

3.363.17

69353RFE3 PNC Bank Callable Note Cont 6/28/20222.45% Due 7/28/2022

500,000.00 07/26/20172.42%

500,650.00500,494.38

96.253.50%

481,254.002,143.75

1.05%(19,240.38)

A2 / AA+

3.833.60

037833DC1 Apple Inc Callable Note Cont 08/12/20222.1% Due 9/12/2022

500,000.00 09/21/20172.29%

495,540.00496,452.66

95.793.24%

478,938.00554.17

1.04%(17,514.66)

Aa1 / AA+NR

3.953.74

24422ERT8 John Deere Capital Corp Note2.8% Due 1/27/2023

450,000.00 04/11/20183.17%

442,606.50443,328.95

97.353.46%

438,085.802,240.00

0.95%(5,243.15)

A2 / AA

4.334.01

44932HAH6 IBM Credit Corp Note3% Due 2/6/2023

350,000.00 02/27/20183.09%

348,565.00348,735.32

98.313.42%

344,072.751,604.17

0.75%(4,662.57)

A1 / A+A+

4.364.02

084670BR8 Berkshire Hathaway Callable Note Cont 1/15/20232.75% Due 3/15/2023

400,000.00 08/14/20183.16%

392,968.00393,161.46

97.673.32%

390,660.00488.89

0.85%(2,501.46)

Aa2 / AAA+

4.464.15

911312BK1 UPS Callable Note Cont 3/1/20232.5% Due 4/1/2023

450,000.00 04/11/20183.11%

437,413.50438,599.99

96.423.36%

433,910.255,625.00

0.95%(4,689.74)

A1 / A+NR

4.504.16

931142EK5 Wal-Mart Stores Callable Note Cont 5/26/20233.4% Due 6/26/2023

500,000.00 07/31/20183.26%

503,095.00502,989.37

100.443.30%

502,176.504,438.89

1.10%(812.87)

Aa2 / AAAA

4.744.24

02665WCJ8 American Honda Finance Note3.45% Due 7/14/2023

400,000.00 07/31/20183.38%

401,336.00401,291.64

99.853.48%

399,390.802,875.00

0.87%(1,900.84)

A2 / A+NR

4.794.35

Total US Corporate 7,340,000.00 2.54%7,320,815.907,312,644.40 3.17%

7,200,485.7043,688.95

15.70%(112,158.70)

A1 / A+A+

3.012.81

US TREASURY

912828ST8 US Treasury Note1.25% Due 4/30/2019

600,000.00 Various1.64%

589,115.29598,713.66

99.312.45%

595,851.603,138.59

1.30%(2,862.06)

Aaa / AA+AAA

0.580.57

912828UF5 US Treasury Note1.125% Due 12/31/2019

600,000.00 03/15/20161.33%

595,408.26598,486.02

98.062.71%

588,351.601,705.84

1.28%(10,134.42)

Aaa / AA+AAA

1.251.22




Account #10076



Mkt PriceMkt YTM


% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

US TREASURY

912828UV0 US Treasury Note1.125% Due 3/31/2020

600,000.00 05/26/20151.58%

587,298.89596,072.64

97.612.77%

585,633.0018.54

1.27%(10,439.64)

Aaa / AA+AAA

1.501.47

912828VA5 US Treasury Note1.125% Due 4/30/2020

600,000.00 03/15/20161.41%

593,298.89597,429.16

97.452.78%

584,718.602,831.25

1.27%(12,710.56)

Aaa / AA+AAA

1.581.54

912828XM7 US Treasury Note1.625% Due 7/31/2020

600,000.00 12/11/20151.54%

602,228.57600,882.20

97.882.82%

587,296.801,642.66

1.28%(13,585.40)

Aaa / AA+AAA

1.841.78

912828L65 US Treasury Note1.375% Due 9/30/2020

300,000.00 10/20/20151.38%

299,872.10299,948.24

97.202.83%

291,585.9011.33

0.63%(8,362.34)

Aaa / AA+AAA

2.001.95

912828WC0 US Treasury Note1.75% Due 10/31/2020

675,000.00 12/29/20151.78%

674,158.51674,637.59

97.812.84%

660,208.054,943.27

1.44%(14,429.54)

Aaa / AA+AAA

2.092.01

912828Q78 US Treasury Note1.375% Due 4/30/2021

700,000.00 11/15/20161.64%

691,963.28695,344.04

96.312.87%

674,187.504,049.86

1.47%(21,156.54)

Aaa / AA+AAA

2.582.49

912828S27 US Treasury Note1.125% Due 6/30/2021

625,000.00 09/28/20161.13%

624,953.27624,972.99

95.402.88%

596,240.001,776.92

1.30%(28,732.99)

Aaa / AA+AAA

2.752.67

912828T34 US Treasury Note1.125% Due 9/30/2021

575,000.00 12/13/20161.87%

555,393.53562,738.96

94.972.89%

546,070.6017.77

1.18%(16,668.36)

Aaa / AA+AAA

3.002.91

912828G53 US Treasury Note1.875% Due 11/30/2021

575,000.00 12/13/20161.91%

574,125.95574,442.38

96.952.89%

557,457.903,623.21

1.22%(16,984.48)

Aaa / AA+AAA

3.173.02

912828U81 US Treasury Note2% Due 12/31/2021

600,000.00 01/31/20171.90%

602,931.70601,939.76

97.212.90%

583,288.803,032.61

1.27%(18,650.96)

Aaa / AA+AAA

3.253.10

912828V72 US Treasury Note1.875% Due 1/31/2022

600,000.00 04/04/20171.88%

599,978.57599,985.17

96.732.91%

580,383.001,895.38

1.26%(19,602.17)

Aaa / AA+AAA

3.343.19

912828XW5 US Treasury Note1.75% Due 6/30/2022

650,000.00 Various1.81%

648,238.51648,610.63

95.882.92%

623,212.852,874.66

1.36%(25,397.78)

Aaa / AA+AAA

3.753.58

9128283C2 US Treasury Note2% Due 10/31/2022

400,000.00 02/27/20182.60%

389,468.75390,790.56

96.422.94%

385,687.603,347.83

0.84%(5,102.96)

Aaa / AA+AAA

4.093.85

Total US Treasury 8,700,000.00 1.68%8,628,434.078,664,994.00 2.82%

8,440,173.8034,909.72

18.37%(224,820.20)

Aaa / AA+AAA

2.432.33

TOTAL PORTFOLIO 46,676,377.87 1.83%46,549,815.8446,589,138.37 2.48%

45,946,479.11190,824.50

100.00%(642,659.26)

Aa1 / AAAAA

1.581.51

TOTAL MARKET VALUE PLUS ACCRUED 46,137,303.61


Transaction LedgerAs of September 30, 2018


Account #10076

Transaction Type

Settlement Date CUSIP Quantity Security Description Price Acq/Disp

Yield Amount InterestPur/Sold Total Amount Gain/Loss

ACQUISITIONS

Purchase 09/01/2018 60934N807 3,544.10 Federated Investors Govt Oblig Fund Inst.

1.000 1.59% 3,544.10 0.00 3,544.10 0.00

Purchase 09/05/2018 60934N807 106.06 Federated Investors Govt Oblig Fund Inst.

1.000 1.59% 106.06 0.00 106.06 0.00


1.000 1.59% 4,312.50 0.00 4,312.50 0.00


1.000 1.59% 4,781.25 0.00 4,781.25 0.00


1.000 1.59% 9,000.00 0.00 9,000.00 0.00


1.000 1.59% 15,750.00 0.00 15,750.00 0.00


1.000 1.59% 6,093.75 0.00 6,093.75 0.00


1.000 1.59% 4,375.00 0.00 4,375.00 0.00


1.000 1.59% 5,500.00 0.00 5,500.00 0.00


1.000 1.59% 5,850.00 0.00 5,850.00 0.00


1.000 1.59% 600,000.00 0.00 600,000.00 0.00


1.000 1.66% 8,671.88 0.00 8,671.88 0.00

Subtotal 667,984.54 667,984.54 0.00 667,984.54 0.00

TOTAL ACQUISITIONS 667,984.54 667,984.54 0.00 667,984.54 0.00

DISPOSITIONS

Maturity 09/17/2018 3133ED2C5 600,000.00 FFCB Note1.95% Due 9/17/2018

100.000 600,000.00 0.00 600,000.00 0.00

Subtotal 600,000.00 600,000.00 0.00 600,000.00 0.00




Account #10076

Transaction Type



DISPOSITIONS

Security Withdrawal

09/14/2018 60934N807 4,375.00 Federated Investors Govt Oblig Fund Inst.

1.000 4,375.00 0.00 4,375.00 0.00

Security Withdrawal

09/28/2018 60934N807 654,937.66 Federated Investors Govt Oblig Fund Inst.

1.000 654,937.66 0.00 654,937.66 0.00

Security Withdrawal

09/30/2018 90CASH$00 668,313.79 Cash Custodial Cash Account 1.000 668,313.79 0.00 668,313.79 0.00

Subtotal 1,327,626.45 1,327,626.45 0.00 1,327,626.45 0.00

TOTAL DISPOSITIONS 1,927,626.45 1,927,626.45 0.00 1,927,626.45 0.00

OTHER TRANSACTIONS

Interest 09/01/2018 30231GAP7 415,000.00 Exxon Mobil Corp Note1.708% Due 3/1/2019

0.000 3,544.10 0.00 3,544.10 0.00

Interest 09/08/2018 3133782M2 575,000.00 FHLB Note1.5% Due 3/8/2019

0.000 4,312.50 0.00 4,312.50 0.00

Interest 09/10/2018 313382AX1 450,000.00 FHLB Note2.125% Due 3/10/2023

0.000 4,781.25 0.00 4,781.25 0.00

Interest 09/11/2018 313378CR0 800,000.00 FHLB Note2.25% Due 3/11/2022

0.000 9,000.00 0.00 9,000.00 0.00

Interest 09/12/2018 037833DC1 500,000.00 Apple Inc Callable Note Cont 08/12/20222.1% Due 9/12/2022

0.000 5,250.00 0.00 5,250.00 0.00

Interest 09/12/2018 313382K69 625,000.00 FHLB Note1.75% Due 3/12/2021

0.000 5,468.75 0.00 5,468.75 0.00

Interest 09/12/2018 3135G0ZG1 575,000.00 FNMA Note1.75% Due 9/12/2019

0.000 5,031.25 0.00 5,031.25 0.00

Interest 09/13/2018 313378J77 650,000.00 FHLB Note1.875% Due 3/13/2020

0.000 6,093.75 0.00 6,093.75 0.00

Interest 09/14/2018 4581X0CZ9 500,000.00 Inter-American Dev Bank Note1.75% Due 9/14/2022

0.000 4,375.00 0.00 4,375.00 0.00

Interest 09/15/2018 084670BR8 400,000.00 Berkshire Hathaway Callable Note Cont 1/15/20232.75% Due 3/15/2023

0.000 5,500.00 0.00 5,500.00 0.00




Account #10076

Transaction Type



OTHER TRANSACTIONS

Interest 09/17/2018 3133ED2C5 600,000.00 FFCB Note1.95% Due 9/17/2018

0.000 5,850.00 0.00 5,850.00 0.00

Interest 09/30/2018 912828L65 300,000.00 US Treasury Note1.375% Due 9/30/2020

0.000 2,062.50 0.00 2,062.50 0.00

Interest 09/30/2018 912828T34 575,000.00 US Treasury Note1.125% Due 9/30/2021

0.000 3,234.38 0.00 3,234.38 0.00

Interest 09/30/2018 912828UV0 600,000.00 US Treasury Note1.125% Due 3/31/2020

0.000 3,375.00 0.00 3,375.00 0.00

Subtotal 7,565,000.00 67,878.48 0.00 67,878.48 0.00

Dividend 09/05/2018 60934N807 3,544.10 Federated Investors Govt Oblig Fund Inst.

0.000 106.06 0.00 106.06 0.00

Subtotal 3,544.10 106.06 0.00 106.06 0.00

TOTAL OTHER TRANSACTIONS 7,568,544.10 67,984.54 0.00 67,984.54 0.00


Category Standard Comment

Local Agency Bonds No Limitation Complies

Treasury Issues No Limitation Complies

Agency Issues No Limitation Complies

Banker’s Acceptances 40% maximum; 5% max per issuer; 180 days max maturity Complies

Commercial Paper 25% maximum; 5% max per issuer; 270 days max maturity; A‐1 or equivalent rated; A‐ rated issuer Complies

Negotiable Certificates of Deposit 30% maximum; 5 years max maturity; 5% max per issuer Complies

Repurchase Agreements No limitation; 1‐year max maturity Complies

Reverse Repurchase Agreements 20% maximum; 92 days max maturity Complies

Medium Term Notes 30% maximum; 5% max per issuer; 5 years max maturity; A‐rated or better Complies

Money Marker Mutual Funds 20% maximum; AAA by two NRSROs or SEC registered Investment Adviser; 10% max per fund CompliesMortgage Pass‐throughs, CMOs and Asset Backed Securities

20% maximum; AA‐rated issue; A‐rated issuer Complies

Supranational Securities30% maximum; 10% max per issuer; IBRD, IADB or IFC Only; AA‐ rated or better

Complies

Local Agency Investment Fund ‐ LAIF Maximum program limitation Complies

Prohibited Securities Inverse floaters; Ranges notes, Interest‐only strips from mortgaged backed securities; Zero interest accrual securities Complies

Maximum Per Issuer Exposure No more than 5% in any single issuer except US government and agencies Complies

Maximum maturity 5 years Complies


As of September 30, 2018

Assets managed by Chandler Asset Management are in full compliance with state law and with the District's investment policy.

Statement of Compliance

177

Account #10074Net of Fees Performance ReportWalnut Valley Water District

Page1Chandler Asset Management ‐CONFIDENTIAL Execution Time: 10/2/2018 12:18:25 PM

September 30, 2018

Porfolio Index

Period Net of 10.9 bps annual fee

*ML 1‐5 Year US Government

1 month ‐0.16% ‐0.27%3 months 0.24% 0.06%Year to Date 0.07% ‐0.18%Lastest 12 Months ‐0.26% ‐0.55%Inception Date 7/31/2009 7/31/2009Since Inception 12.34% 10.93%Annualized Since Inception 1.28% 1.14%

178

Walnut Valley Water DistrictSummary of Cash and Investments

by Reserve FundSeptember 30, 2018

Category 1General Account 5,969,317.84$ 12.79%

5,969,317.84$ 12.79%

Category 2Operating Reserve 4,854,000.00$ 10.40%Replacement 9,605,218.58$ 20.58%Capital Improvement 1,128,415.70$ 2.42%Rate Stabilization 1,541,603.39$ 3.30%B/G Catastrophic Ins 500,000.00$ 1.07%Employee Liabilities 2,017,426.01$ 4.32%Project Reserve 967,231.99$ 2.07%

20,613,895.67$ 44.16%

Category 3Customer/Developer Deposits 12,528,743.52$ 26.84%

12,528,743.52$ 26.84%

Category 4ASC 1,804,065.18$ 3.87%Badillo/Grand-Maintenance 296,118.03$ 0.63%RCC 3,079,112.10$ 6.60%RCC/Tres Hermanos 331,060.95$ 0.71%WSC 2,054,064.58$ 4.40%

7,564,420.84$ 16.21%

Total 46,676,377.87$ 100.00%

Note: Effective 6/30/12, the Badillo Grand Catastrophic Insurance Fund was reclassified from a Restricted Fund to a Designated Fund.

Category 2 - These funds, although not legally or externally restricted, have been reserved pursuant to the Board’s desire to provide a stable and

equitable rate structure. All interest earned related to these funds is retained by each designated fund.

Category 3 - These funds have legal or external restrictions. TheseRestricted Funds can only be used for the specific purposes established forthe fund. All interest earned is retained in the General Fund.

Category 4 - These funds have legal or external restrictions. All interestearned must be retained by each Restricted Fund and can only be used forthe specific purposes established for the fund.

ALLOCATION OF CASH AND INVESTMENTSUnrestricted

Category 1 - These are funds that accumulate from day-to-day operationsand represent the net equity in the District’s General Fund. All interestearned is retained in the General Fund.

Restricted Reserves

Designated12.79%

20.58%

2.42%3.30%1.07%

4.32%2.07%

10.40%

26.84%

3.87% 0.63%

6.60% 0.71%4.40%

`

179

Bond Proceeds 19,940,487.80$

Disbursements:Cost of IssuanceFieldmann, Rolapp & Associates (Financial Advisors) (26,270.57)$ Hawkins, Delafield & Wood, LLP. (Bond Counsel) (45,000.00) Union Bank, N.A. (Trustee) (3,708.00) Standard & Poor's Rating Services (Credit Rating) (17,000.00) Image Master (Official Statement) (3,158.31) Hawkins Delafield & Wood (Bond Counsel) (1,743.31)

(96,880.19) ProjectsPuente Basin Water Agency - Pomona Basin 1 (984,003.82) Puente Basin Water Agency - LHHCWD Project 1 (350,566.00)

Puente Basin Water Agency - CDWC Project 1 (4,138,324.99)

Administration Headquarters1 (841,679.37)

Water Rights - Central Basin (3,630,907.50)

(9,945,481.68) Substitute ProjectsAce Nogales Grade Separation (P#03-2820)2 (706,545.61) Ridgeline Pump Station Modifications (P#12-3267) 3 (221,195.68) 30 kw Diesel Portable Generator (P#13-3290)3 (39,490.70)

(967,231.99)

Interest Income 322,877.78

Ending Balance of Bond Funds Held in Trust 9,253,771.72$

1 Related to projects identified in the Official Statement dated March 21, 20132 Substitute project approved by the Board on April 18, 2013. Reimbursed amounts will be placed in the Project Reserve3 Substitute projects approved by the Board on September 16, 2013. Reimbursed amounts will be placed in the Project Reserve

Walnut Valley Water DistrictRevenue Bond Funds Held in Trust - Union Bank

September 30, 2018Life to Date

180

Beginning Balance of Bonds Funds Held in Trust 9,252,633.10$

Receipts:Interest Income 1,138.62

Disbursements:PBWA - Pomona Basin Project - PBWA - Cal Domestic Project - Administration Headquarters -

-$

Ending Balance of Bond Funds Held in Trust 9,253,771.72$

Walnut Valley Water DistrictRevenue Bond Funds Held in Trust - Union Bank

September 30, 2018

181


RESOLUTION NO. 10-08-656

RESOLUTION HONORING RICHARD HANSEN ON THE OCCASION OF HIS RETIREMENT FOLLOWING

FORTY-ONE YEARS OF DEDICATED SERVICE AT THREE VALLEYS MUNICIPAL WATER DISTRICT

WHEREAS, Richard Hansen began his career at Three Valleys Municipal Water District (Three Valleys) in 1977, serving first as a District Engineer; and WHEREAS, he has served as the Three Valleys General Manager for nearly 38 years, beginning in February of 1981, becoming the youngest municipal water district manager at the time; and WHEREAS, Richard Hansen, who is a Registered Civil Engineer who holds Masters Degrees in Civil Engineering and Public Administration was the lead engineer in the construction of the Miramar Water Treatment Plant and Transmission Pipeline, a key source of State Water Project water to the region; and WHEREAS, he has worked cooperatively with the Three Valleys thirteen member agencies, including Walnut Valley Water District, to diversify and enhance water supplies for the local region; and WHEREAS, Richard Hansen will be retiring from his position as the Three Valleys General Manager on December 28, 2018; and WHEREAS, Richard Hansen is respected by the Three Valleys Board of Directors and staff, as well as the thirteen member agencies and the water supply community; NOW, THEREFORE, BE IT RESOLVED, that the Walnut Valley Water District Board of Directors does hereby honor and congratulate Richard Hansen on the occasion of his retirement following his forty-one years of dedicated service to the Three Valleys Municipal Water District, its customers and member agencies. PASSED AND ADOPTED, at a regular meeting of the Walnut Valley Water District Board of Directors, held October 15, 2018.

182

Items 1-6 were proforma and included: call to order, pledge of

allegiance, roll call, additions to agenda, reorder agenda and public

comments.

Item 7 — The Board considered approval of the consent calendar, Items

7.A-7.K as follows: (A) receive, approve and file June 2018 board

meeting minutes for June 6, 2018 and June 20, 2018; (B) ratify financial

reports for June/July 2018 (warrant summary/disbursements); (C)

receive, approve and file August 2018 financial reports and investment

updates; (D) approve amendments to TVMWD Conflict of Interest Code;

(E) approve employee health care costs for CY 2019; (F) approve

California Asset Management Program; (G) approve Filter Aid System

Replacement; (H) Resolution No. 18-09-832 Participation in the Great

California Shakeout; (I) Resolution No. 18-09-833 Tax Sharing

Exchange County Sanitation District, Annexation 21-758; (J) Resolution

No. 18-09-834 Tax Sharing Exchange County Sanitation District,

Annexation 22-432; (K) Resolution No. 18-09-835 Tax Sharing

Exchange County Lighting Maintenance District 1687, Annexation L-032

-2016. Board Action: Motion No. 18-09-5189 — moved by Ruzicka,

seconded by De Jesus, and passed by a 6-0 vote. Director Horan

was absent from the vote.

Item 8.A — The Board was provided a legislative update with emphasis

on the legislative activity TVMWD has supported and opposed during

the 2017-18 legislative year.

Item 8.B — The Board considered and approved Resolution No. 18-09

-836 updating TVMWD’s Surplus Property Enabling Resolution.

Approval of Resolution No. 18-09-836 supersedes the existing

Resolution No. 11-04-488 that lays out the procedures for surplus

property. Board Action: Motion No. 18-09-5190 — moved by

Bowcock, seconded by Ruzicka, and passed by a 6-0 vote. Director

Horan was absent from the vote.

T H R E E V A L L E Y S M W D

Board meetings

are scheduled for

8:00 a.m. the first

and third

Wednesday of

each month at

1021 E. Miramar

Claremont, CA

1021 E. Miramar Avenue

Claremont, CA 91711

909-621-5568 — Phone

909-625-5470 — Fax

www.threevalleys.com

B O A R D M E M B E R S

C A R L O S G O Y T I A D I V I S I O N I

D A V I D D E J E S U S D I V I S I O N I I

B R I A N B O W C O C K D I V I S I O N I I I

B O B K U H N D I V I S I O N I V

J O S E P H R U Z I C K A D I V I S I O N V

J O H N M E N D O Z A D I V I S I O N V I

D A N H O R A N D I V I S I O N V I I

A c t i o n L i n e Regular Board Meeting

September 19, 2018

F O R A D D I T I O N A L I N F O R M A T I O N : 9 0 9 - 6 2 1 - 5 5 6 8

TVMWD is a water resources management agency that covers approximately 133 square

miles and is governed by an elected Board of seven officials. The present population is

about 525,000. Since its formation, the Three Valleys Municipal Water District has

installed some 37,000 feet of pipeline and delivered more than 175 billion gallons of water.

183

Item 8.C — The Board considered and ratified or approved the director expense reports for June-

August 2018. Board Action: Motion No. 18-09-5191 — moved by Ruzicka, seconded by

Goytia, and passed by a 6-0 vote. Director Horan was absent from the vote.

Item 8.D — The Board was provided an update on the calendar year imported water sales for the

month of August 2018 and the current peak flow reports through September 12, 2018.

Item 8.E — The Board was provided with an update of the Miramar Treatment Plant operations for

the month of August 2018.

Item 10 — The Board convened a closed session and were updated on seven matters:

A-D: Conference with Legal Counsel—Existing Litigation pursuant to Government Code 54956.9(d)

(1)

A) San Diego County Water Authority v. MWD, Case No. CPF-10-510830

B) San Diego County Water Authority v. MWD, Case No. CPF-12-512466

C) San Diego County Water Authority v. MWD, Case No. BS173868

D) Chino Basin Municipal Water District v. City of Chino, State of California County of Appeal

Case No. E068640 (reference San Bernardino County Superior Court Case No.

RCVRS51010)

E: Conference with Legal Counsel — Anticipated Litigation; Initiation of litigation pursuant to Gov-

ernment Code No. 54956.9(d)(4) Two potential cases.

F: Public Employee Performance Evaluation pursuant to Government Code Section 54957; Title:

General Manager.

G: Conference with Labor Negotiators pursuant to Government Code Section 54957.6; District des-

ignated representative, Steven M. Kennedy, Law Office of Brunick, McElhaney and Kennedy;

Unrepresented employee: General Manager.

Upon returning to regular session the following closed session report was provided. On items A-E

there was no reportable action pursuant to the Brown Act.


September 19, 2018 ~ Page 2

184


September 19, 2018 ~ Page 3

Regarding Item 10.F and 10.G — The Board accepted the General Manager’s request for early re-

tirement. Board President Kuhn read the following statement:

The Board has accepted the early retirement of its long-time General Manager, Rick

Hansen, effective December 28, 2018, and will promote its Assistant General Manager,

Matt Litchfield, to serve as the District’s Interim General Manager from that date through

June 30, 2019, at his current salary. These dual actions will result in a savings to the

District of approximately $100,000 in employee compensation and benefits.

The Board wishes to thank Rick for all his tremendous accomplishments during his cur-

rent employment agreement; but more importantly, we wish to express our deep appre-

ciation for all the contributions that Rick has made to the District during the course of his

remarkable career. Rick has served as the District’s General Manager since February

1981, and during that nearly 38-year period has brought a high-level of skill, excellence,

consistency and stability that is rarely experienced by public agencies in this day and

age. We would like to offer our most sincere thanks to Rick for his commitment to the

District and to our constituents, and we wish him well as he moves forward to this new

phase in his life.

The next meeting is scheduled for Wednesday, October 3, 2018 at 8:00 a.m.

REGISTRATION NOW OPEN! — TVMWD LEADERSHIP BREAKFAST - WEDNESDAY, OCTO-

BER 31, 2018. Speaker: Mickey Chaudhuri, Assistant Group Manager (interim), Water System Op-

erations, Metropolitan Water District of Southern California

Topic: Developing a New Source of Water for Southern California: Progress on the Regional Recy-

cled Water Program

Venue: Sheraton Fairplex Hotel: 601 W. McKinley Avenue, Pomona, CA

RSVP: Cindy DeChaine, [email protected] or call, 909-621-5568.

185

Wtr Cons. (Acre-feet) %

Wtr Cons. (Acre-feet) %

POMONA 591.3 29.027% MWD 1,449.7 70.838%,WALNUT 898.5 44.107% TVMWD 596.8 29.162%ROWLAND 547.3 26.867% LaVERNE 0.0 0.000%LaVERNE 0.0 0.000% Total 2,046.50 100.000%

2,037.1 100.000% 2,037.10BILLING DIFFERENCE 9.400 0.459%

Connection / Description

Allocated Share of Billing Differnce

Adjusted Agency Consumption

Adjusted Consumption for Billing (Acre-

feet)Water Purchased

from MWD

Water Purchased

from TVMWD

Water Purchased

from LaVERNE WELL

Total Water Purchased (Acre-feet)

(Acre-feet) (Acre-feet) (Rounded) 70.838% 29.162% 0.000% 100.000%

POMONA 591.3 2.728 594.0 594.0 420.8 173.2 0.0 594.0WALNUT 898.5 4.146 902.6 902.6 639.4 263.2 0.0 902.6ROWLAND 547.3 2.525 549.8 549.8 389.5 160.4 0.0 549.9LaVERNE 0.0 0.000 0.0 0.0 0.0 0.0 0.0 0.0

2,037.1 9.400 2,046.5 2,046.5 1,449.7 596.9 0.0 2,046.6

MWD PM-15

TVMWD PM-21

MWD CAPACITY RESERVATION

TVMWD CONNECTED

CAPACITY

TVMWD WATER USE

CHARGE DEPRECIATION REPLACEMENTADMIN BUDGET

ASSESSMENTMWD LRP REBATE

PROGRAM TOTAL

City of PomonaCons. A.F. 420.8 173.2 27,582.19 5,365.26 5,828.07 5,699.0 4,592.0 27,675.00 95.0Water Rate 1,010.00$ 1,010.00$ 25.00% 52.00% 23.32% 25.00% 25.00% 33.33% (100.00)$

Total 425,008.00 174,932.00 6,895.55 2,789.94 1,359.11 1,424.75 1,148.00 9,224.08 (9,500.00) $613,281.42Walnut Valley Water District

Cons. A.F. 639.4 263.2 27,582.19 5,365.26 5,828.07 7,734.00 12,102.00 27,675.00Water Rate 1,010.00$ 1,010.00$ 48.33% 28.00% 46.89% 25.00% 25.00% 33.33%

Total 645,794.00 265,832.00 13,330.47 1,502.27 2,732.78 1,933.50 3,025.50 9,224.08 $943,374.60Rowland Water District

Cons. A.F. 389.5 160.4 27,582.19 5,365.26 5,828.07 5,556.00 7,640.00 27,675.00Water Rate 1,010.00$ 1,010.00$ 26.67% 20.00% 29.79% 25.00% 25.00% 33.33%

Total 393,395.00 162,004.00 7,356.17 1,073.05 1,736.18 1,389.00 1,910.00 9,224.08 $578,087.48City of LaVerne

Cons. A.F. 0.0 0.0Water Rate $1,010.00 $1,010.00

Total $0.00 $0.00 $0.00

Total(A.F.) 1,449.7 596.9 2,046.6Total ($) 1,464,197.00 602,768.00 27,582.19 5,365.26 5,828.07 (9,500.00) 2,096,240.52

Total-Other 4,747.25 6,083.50 27,672.23 38,502.98

POMONA-WALNUT-ROWLANDJOINT WATER LINE COMMISSION

WATER USE DISTRIBUTION AND

BILLING REPORT

September 2018 Water Use

AGENCY CONSUMPTION (Per PWR Meter Reads) ACTUAL WATER PRODUCTION

CALCULATION OF AGENCY WATER CONSUMPTION(Water consumption billed to each agency is based on amount of water purchased from MWD and TVMWD)

186

WVWD – Staff Report TO: Board of Directors FROM: General Manager DATE: October 15, 2018 SUBJECT: Follow-up Regarding Prior Board Actions


Recommendation For information only.

Background Information

Following is an update regarding matters that have recently come before the Board of Directors.

Item Meeting Date Action Status Follow-Up

Board was asked to authorize staff to forward a letter to the Puente Basin Watermaster indicating the District’s preference that “Option 1” be used to calculate the collective import return flow credit.

9/17/18 Board authorized letter be sent. Complete

Letter was emailed to Puente Basin Watermaster on 9/19/18.

Board completed its annual review of the Identity Theft Prevention Program.

9/17/18 No modifications were recommended. Complete N/A

Board considered changing the December Committee meeting schedule.

9/17/18

The Board changed the Committee dates to 12/5 and 12/6 – See December Calendar for dates and times.

Complete N/A

187

November 2018 Monthly Planner

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 2 3

4 5 6 7 8 9 10

3:30 PM Spadra Basin GSA

Meeting @ Pomona

6:30 PM Diamond Bar City Council Meeting

8:00 AM TVMWD Board Meeting

7:00 AM PBWA Meeting @

WVWD 4:00 PM Personnel

Committee 4:00 PM Engineering

Committee

4:45 PM Public Info Committee

4:30 PM Finance Committee

11 12

District Office is Closed in

Observance of Veterans Day

Holiday

13 14 15 16 17

5:00 PM WVWD Board Meeting

7:00 PM Walnut City Council

Meeting

4:00 PM WVWD Board Workshop

18 19 20 21 22 District Office

is Closed in Observance of Thanksgiving

Holiday

23 District Office

is Closed in Observance of Thanksgiving

Holiday

24

10:30 AM 4th District Consolidated Oversight

Board Meeting 6:30 PM Diamond Bar City Council Meeting

25 26

27 28 29 30 7:00 PM Walnut

City Council Meeting

ACWA/JPIA Fall Conference – San Diego

188

December 2018 Monthly Planner


1

2 3 4 5 6 7 8


7:00 AM PBWA Meeting @ RWD

3:30 PM Spadra Basin GSA Meeting

@ Pomona


4:00 PM Personnel Committee

4:00 PM Engineering Committee

4:45 PM Public Info

Committee 4:30 PM Finance

Committee

9 10 11 12 13 14 15

7:00 PM Walnut City Council Meeting

16 17 18 19 20 21 22 10:30 AM 4th District

Consolidated Oversight Board Meeting




23 24

District Office is Closed In

Observance of Christmas Eve

Holiday

25 District Office is

Closed in Observance of Christmas Day

Holiday

26 27 28 29


30 31

189

January 2019 Monthly Planner


1 District Office is

Closed in Observance of New Year’s Day

Holiday

2 3 4 5

6 7 8 9 10 11 12

3:30 PM Spadra Basin GSA Meeting

@ Pomona


13 14 15 16 17 18 19

4:00 PM Personnel Committee

4:00 PM Engineering Committee

4:45 PM Public Info Committee

4:30 Finance Committee


20 21

District Office is Closed in

Observance of Martin Luther

King Jr. Day Holiday

22 23 24 25 26



4:00 PM WVWD Board Workshop

27 28 29 30 31

Note: Committee and Board meeting dates are tentative pending approval by the Board of Directors

190

WALNUT VALLEY WATER DISTRICT WATER SUPPLY AND CONSERVATION UPDATE

October 15, 2018

A

B

C

Water Use – Water usage for September 2018 was 1,753.276 acre feet, a decrease of 1.64% compared to August 2017 and a decrease of 15.04% from September 2013. The average inflow into the system during the month was approximately 29.52 cfs (13,248.75 gallons per minute). Recycled Water Use – During the month of September the recycled water system delivered 2,515,649 G.P.D., a decrease of 18.95% compared to the use in September 2017. Of the recycled water delivered, 55.71% was from the District wells and no water was transferred from potable Make-up water. Production Report – attached are: Purchased Water Projections (Two total) Climate Summary Monthly Consumption Versus the 2013 Baseline Year (Two total)

Exhibits

191

Month PWR PBWA Spread Total Budget Low HighJanuary 759.500 530.082 0.000 1,289.582 1,113.000 958.751 1,197.135 4.95% 1,289.582 4.95%February 672.900 566.913 0.000 1,239.813 1,057.000 818.161 1,243.058 4.76% 2,529.395 9.71%March 707.200 269.091 0.000 976.291 1,210.000 946.030 1,429.205 3.75% 3,505.686 13.45%April 765.800 670.369 0.000 1,436.169 1,418.000 1,255.620 1,475.525 5.51% 4,941.855 18.97%May 758.600 741.865 0.000 1,500.465 1,565.000 1,357.939 1,598.447 5.76% 6,442.320 24.72%June 767.800 856.570 0.000 1,624.370 1,693.000 1,485.027 1,731.416 6.23% 8,066.690 30.96%July 949.100 977.429 0.000 1,926.529 1,866.000 1,527.024 1,949.955 7.39% 9,993.219 38.35%August 930.600 1,010.190 0.000 1,940.790 1,833.000 1,617.596 1,879.205 7.45% 11,934.009 45.80%September 902.600 850.676 0.000 1,753.276 1,744.000 1,427.217 1,782.528 6.73% 13,687.285 52.53%October 0.000 0.000 1,653.000 1,430.902 1,805.421 0.00% 13,687.285 52.53%November 0.000 0.000 1,394.000 1,297.870 1,480.492 0.00% 13,687.285 52.53%December 0.000 0.000 1,307.000 1,127.400 1,521.503 0.00% 13,687.285 52.53%

Total 7,214.100 6,473.185 0.000 13,687.285 17,853.000 15,249.537 19,093.8904,354.000 3,856.172 4,807.416

18,041.285 17,543.457 18,494.701

26,057.00 8,015.715 8,513.543 7,562.299

0.000

$0.00 2015 2016 2017

Tier I Balance

Tier I Allocation PWR 14,152.00 6,937.90 Tier I Allocation TVMWD 11,905.00 5,431.82

Tier 2 Incremental Cost @ $86/AF

WALNUT VALLEY WATER DISTRICTCalendar Year 2018 Purchased Water Estimate

Actual Purchases (AF) Projected Purchases (AF)% Tier I

Cumulative Total (AF)

Cumulative % Tier I

Remaining Projected Purchases

Total Purchases

Tier 1 Allocation

Tier 2 PurchasesYear of Occurrence

10/11/2018

192

January February March April May June July August September October November December

Budget 1,113.000 1,057.000 1,210.000 1,418.000 1,565.000 1,693.000 1,866.000 1,833.000 1,744.000 1,653.000 1,394.000 1,307.000

Low 958.751 818.161 946.030 1,255.620 1,357.939 1,485.027 1,527.024 1,617.596 1,427.217 1,430.902 1,297.870 1,127.400

High 1,197.135 1,243.058 1,429.205 1,475.525 1,598.447 1,731.416 1,949.955 1,879.205 1,782.528 1,805.421 1,480.492 1,521.503

CY 2018 1,289.582 1,239.813 976.291 1,436.169 1,500.465 1,624.370 1,926.529 1,940.790 1,753.276 0.000 0.000 0.000

0.000

500.000

1,000.000

1,500.000

2,000.000

2,500.000

AC

RE-

FEET

Calendar Year 2018 Purchased Water

10/11/2018

193

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

25

35

45

55

65

75

85

95

105

115

125

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18

Inch

es o

f Rai

n

Degr

ees F

ahre

nhei

t

Month

Walnut Valley Water DistrictClimate Summary

Rain Fall High Temperature Low Temperature Previous Year Rain Fall

194

WALNUT VALLEY WATER DISTRICTCONSUMPTION DATA ‐ CURRENT YEAR VERSUS 2013 BASELINE

‐

50,000

100,000

150,000

200,000

250,000

Jul‐13 Jul‐18 Aug‐13 Aug‐18 Sep‐13 Sep‐18 2013 2018‐19

Irrigation Consumption Versus 2013 Baseline

‐

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000


Residential Tiers Versus 2013 Baseline

Tier I Tier II Tier III

‐

500,000

1,000 ,000

1,500 ,000

2,000 ,000

2,500 ,000

3,000 ,000


YTD Consumption Versus 2013 Baseline Year

195

Walnut Valley Water DistrictMonthly Consumption Versus 2013 Baseline Year

Consumption/Water Sales

User Class Jul-13 Jul-18 Change % Change Aug-13 Aug-18 Change % Change Sep-13 Sep-18 Change % Change 2013 YTD FY 18-19 Change % ChangeCOG 49,565 34,071 (15,494) -31% 53,435 47,894 (5,541) -10% 50,686 48,942 (1,744) -3% 153,686 130,907 (22,779) -15%COM 95,283 71,103 (24,180) -25% 99,903 88,830 (11,073) -11% 90,136 90,099 (37) 0% 285,322 250,032 (35,290) -12%IND 13,038 9,179 (3,859) -30% 13,123 11,322 (1,801) -14% 12,479 11,892 (587) -5% 38,640 32,393 (6,247) -16%MUL 82,038 64,082 (17,956) -22% 81,050 76,868 (4,182) -5% 76,841 80,598 3,757 5% 239,929 221,548 (18,381) -8%RES 637,352 508,398 (128,954) -20% 662,005 570,638 (91,367) -14% 640,601 584,352 (56,249) -9% 1,939,958 1,663,388 (276,570) -14%

877,276 686,833 (190,443) -22% 909,516 795,552 (113,964) -13% 870,743 815,883 (54,860) -6% 2,657,535 2,298,268 (359,267) -14%

User Class Jul-13 Jul-18 Change % Change Aug-13 Aug-18 Change % Change Sep-13 Sep-18 Change % Change 2013 YTD FY 18-19 Change % ChangeCOG 32,727 24,141 (8,586) -26% 35,845 35,312 (533) -1% 32,995 35,357 2,362 7% 101,567 94,810 (6,757) -7%COM 30,288 24,658 (5,630) -19% 31,470 32,933 1,463 5% 30,298 34,842 4,544 15% 92,056 92,433 377 0%IND 2,001 1,417 (584) -29% 2,318 1,769 (549) -24% 2,089 1,904 (185) -9% 6,408 5,090 (1,318) -21%RES 281 182 (99) -35% 322 251 (71) -22% 324 212 (112) -35% 927 645 (282) -30%

65,297 50,398 (14,899) -23% 69,955 70,265 310 0% 65,706 72,315 6,609 10% 200,958 192,978 (7,980) -4%

Residential Tier I Tier II Tier III Total Tier I Tier II Tier III Total Tier I Tier II Tier III Total Tier I Tier II Tier III Total2013 277,522 274,324 85,506 637,352 278,209 284,325 99,471 662,005 277,208 275,700 87,693 640,601 832,939 834,349 272,670 1,939,958 FY 18-19 260,161 194,541 53,696 508,398 265,949 227,492 77,197 570,638 267,563 234,339 82,450 584,352 793,673 656,372 213,343 1,663,388 Difference (17,361) (79,783) (31,810) (128,954) (12,260) (56,833) (22,274) (91,367) (9,645) (41,361) (5,243) (56,249) (39,266) (177,977) (59,327) (276,570) % Change -6% -29% -37% -20% -4% -20% -22% -14% -3% -15% -6% -9% -5% -21% -22% -14%

Water PurchasesJuly August September Total

2013 2,148.67 2,308.73 2,063.59 6,520.99 FY 18-19 1,926.53 1,940.79 1,753.28 5,620.59 Difference (222.14) (367.94) (310.31) (900.40) % Change -10% -16% -15% -14%

YTD RESIDENTIALRESIDENTIAL RESIDENTIAL RESIDENTIAL

July

YTD IRRIGATIONIRRIGATION IRRIGATION IRRIGATION

August September YTD (FY 18-19)

196

38%

45%

WY

CO

UT

AZ NM

This report is produced by the Water Resource Management Group and contains information from various federal, state, and local agencies.

The Metropolitan Water District of Southern California cannot guarantee the accuracy or completeness of this information.

Readers should refer to the relevant state, federal, and local agencies for additional or for the most up to date water supply information.

Reservoirs, lakes, aqueducts, maps, watersheds, and all other visual representations on this report are not drawn to scale.

http://www.mwdh2o.com/WSCR

This report is best printed double sided on legal size paper (8.5" x 14") and folded in quarters

1.8

1.1 1.0

1.7

2.4 2.7

2.3

1.2 0.9 1.3

2.5

0

1

2

3

4

Mill

ion

Ac

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Calendar Year

MWD Storage Reserve Levels

Storage Balance

Emergency Storage

250

350

450

550

650

750

Th

ou

san

d A

cre

-Fe

et

Diamond Valley Lake Storage

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Mill

ion

Ac

re-F

ee

t

Lake Shasta Reservoir Storage

2017-2018 2018-2019

0

5

10

15

20

25

30

Wa

ter

Co

nte

nt

(in

)

Southern Sierra Snowpack

2017-2018 2018-2019 Normal

87%

57%

Statewide

0%

2018 SWP Allocation

669,025 AF

35% of Table A

Flip Over for CRA Data Turn page for more SWP Data

1.31 MAF OROVILLE

274 TAF CASTAIC

705 TAF

DVL

TOT: 1.16 MAF SAN LUIS

SWP: 759 TAF

37%

84%

Average EOM

%

Capacity

Current Storage

(% Capacity)

%

As of: 10/08/2018

Turn page for more CRA Data Flip Over for SWP Data

10.98 MAF POWELL

9.96 MAF

MEAD

1079.32 FT

38%

45%

Upper Colorado River

Basin

0%

2018 Colorado River

854,752 AF

68% of full CRA

0

10

20

30

245%

1.8"

969 TAF less in

storage than this

time last year

0.0 in

No Data

Less than 50

50 - 80

81 - 120

121 - 150

Greater than 150

Snow Water Equivalent

(% of Normal)

Snowpack % of Normal

0153045607590

153%

WY Avg

8 STA: 1.0"

0

15

30

45

60

75

184%

WY Avg

5 STA: 0.8"

0

6

12

18

0%

WY Avg

LA: 0.0"

0

6

12

18

91%

WY Avg

SD: 0.1"

Record Low: 587 TAF (08/01/1977)

Record Low

810 TAF

325 TAF

2.04 MAF

3.5 MAF

24.3 MAF

26.1 MAF

% Normal

WY to Date

WY Avg

%

Rainfall to Date (in)

Capacity: 4.55 MAF

Capacity: 810 TAF

Does not include storage

withdrawals

0%

0% 0%

0%

0%

0%

0%

0% 0%

0%

0%

Southern Sierra 0%

Northern Sierra

0%

Water Supply Conditions

Report

Water Supply Conditions

Report

As of: 10/08/2018

14 TAF more in

storage than this

time last year

Happy New Water Year!

197

Colorado River Resources As of: 10/08/2018

0

5

10

15

20

25

30

35

Wa

ter

Co

nte

nt

(in

)

Northern Sierra Snowpack

2017-2018 2018-2019 Normal

34%

0

4

8

12

16

Pre

cip

ita

tio

n (

in)

8 Station Index Precip

Average Monthly Precip Actual Precip to Date

0

2

4

6

8

10

12

14

16

18

Wa

ter

Co

nte

nt

(in

)

Upper Colorado Basin Snowpack

2017-2018 2018-2019 Normal

0.8

1.3

1.8

2.3

2.8

3.3

3.8

Mill

ion

Ac

re-F

ee

t

Oroville Reservoir Storage

2017-2018 2018-2019

Enhanced Flood Pool (TBD) Original Flood Boundaries

Record Low: 882 TAF (9/7/1977)

0.0

0.3

0.6

0.9

1.2

1.5

1.8

2.1

Mill

ion

Ac

re-F

ee

t

San Luis Reservoir Storage

Total storage 2018-2019 SWP storage 2018-2019

Total storage 2017-2018

SWP storage 2017-2018

8

10

12

14

16

18

20

Mill

ion

Ac

re-F

ee

t

Lake Powell Storage

8

10

12

14

16

18

Mill

ion

Ac

re-F

ee

t

Lake Mead Storage

Surplus

Shortage Trigger

36% 0

4

8

12

16

Pre

cip

ita

tio

n (

in)

5 Station Index Precip


70%

0

2

4

6

Pre

cip

ita

tio

n (

in)


Upper Colorado Basin Precip

Lake Mead Shortage/Surplus Outlook

Likelihood based on results from the August 2018 CRSS model run.

1.0 in.

Water Year

to Date

3.68 MAF less in

storage than this

time last year

20 TAF more in

storage than this

time last year

0

5

10

15

20

25

30

35

40

45

Mill

ion

Ac

re-F

ee

t

Water Year

Sacramento River Runoff

0

3

5

8

10

13

15

18

Mill

ion

Ac

re-F

ee

t

Water Year

Powell Unregulated Inflow

Long Term Average

Long Term

Average

Colorado River Resources As of: 10/08/2018

0.8 in.

Water Year

to Date

2019 2020 2021 2022 2023

Shortage 0% 57% 68% 70% 65%

Surplus 0% 0% 3% 5% 7%221 TAF less in SWP

storage than this

time last year

Other SWP Contract Supplies for 2018 (AF)

Transfer/Exchanges 15,000

Article 14b 27,500

Pool A/B (Purchased) 0

Carryover Supplies 297,000

1.8 in.

Water Year

to Date

255 TAF less in

storage than this

time last year

0.0 in 0.0 in

2018 Colorado River Ag Use

2.75

2.85

2.95

3.05

3.15

J F M A M J J A S O N D

Mill

ion

Ac

re-F

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t

Date of Forecast

IID/CVWD (QSA Priority 3a)

WY 2018

of normal

Capacity: 3.5 MAF Capacity: 24.3 MAF

Capacity: 26.1 MAF Capacity: 2.04 MAF

43%

State Water Project Resources As of: 10/08/2018

WY 2018

of normal 72%

SWP Capacity 1.06 MAF

Total Capacity 2.04 MAF

(Final) (Final Forecast)

400

420

440

460

480

500

J F M A M J J A S O N D

Tho

usa

nd

A

cre

-Fe

et

Date of Forecast

PVID/Yuma (QSA Priority 1 & 2)

Re

lativ

e to

QSA

Thre

sho

ld

+20

0

-20

+40

+60

198

WVWD – Staff Report TO: Board of Directors FROM: General Manager DATE: October 15, 2018 SUBJECT: Adoption of Resolution No. 10-18-655 Ordering Election Not Be Held for

Walnut Valley Water District for Divisions 2 and 3

Action/Discussion Fiscal Impact Resolution Information Only Recommendation That the Board of Directors, as requested by the Los Angeles County Registrar-Recorder’s office, adopt a resolution ordering an election not be held for Walnut Valley Water District and requesting that the Board of Supervisors appoint the persons nominated for the office of Member, Board of Directors: • Director Edwin M. Hilden, Division 2 • Director Theresa Lee, Division 3 Background As you know, Directors are elected to four-year terms with the general elections conducted by the Los Angeles County Registrar-Recorder in November of even-numbered years. Elections are staggered, with Directors for Divisions 2 and 3 standing for election this year. The filing period for this year’s election was July 16, 2018 to August 10, 2018. Attached is a certificate from the Los Angeles County Registrar-Recorder/County Clerk’s office formally certifying that both seats were uncontested and the incumbents will not need to stand for election on November 6, 2018. Therefore, pursuant to Section 10515 of the Elections Code, the Board of Supervisors will at a regular or special meeting held prior to November 26th appoint to the office of Director the persons nominated. Prior to doing so, the WVWD Board is requested to adopt a resolution ordering that an election not be held and requesting the Board of Supervisors to appoint the persons nominated as noted above. Attached is a copy of the notice that was published by the Registrar’s office and that is posted at our District offices. The current term of office for these two divisions expire December 2, 2018, and the new four-year term of office ending on December 2, 2022 will begin at noon on that same day. Attachments: Draft WVWD Resolution No. 10-18-655 L.A. County Registrar-Recorder Certificate and Transmittal Letter (9/14/2018) L.A. County Notice of No Election

199

RESOLUTION NO. 10-18-655

A RESOLUTION OF THE BOARD OF DIRECTORS

OF WALNUT VALLEY WATER DISTRICT ORDERING AN ELECTION NOT BE HELD FOR WALNUT VALLEY WATER DISTRICT AND

REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES IMMEDIATELY APPOINT THE PERSONS NOMINATED FOR THE OFFICE OF MEMBER, BOARD OF DIRECTORS, IN

DIVISIONS 2 AND 3 FOR FULL TERMS ENDING DECEMBER 2, 2022 WHEREAS, only one person has been has been nominated for each office of member of the Board to be filled for Divisions 2 and 3 of the Walnut Valley Water District; NOW, THEREFORE, THE BOARD OF DIRECTORS OF WALNUT VALLEY WATER DISTRICT HEREBY RESOLVES, DETERMINES, AND ORDERS AS FOLLOWS: 1. That, pursuant to the requirements of California Elections Code Section 10515, an election not be held for members of the Board of the Walnut Valley Water District, Divisions 2 and 3; and 2. That the Board of Supervisors of the County of Los Angeles is hereby requested to immediately appoint the persons nominated to fill the Walnut Valley Water District Board member positions for Divisions 2 and 3, namely: Edwin M. Hilden (Division 2) and Theresa Lee (Division 3), and

3. That the Los Angeles County Registrar-Recorder refund to candidates filing for this office any advance payment made for his or her pro rata share of the printing, handling, and mailing costs of his/her candidate statement as a condition to having it included in the voter's sample ballot pamphlet; and

4. That the Executive Secretary is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Registrar-Recorder/County Clerk of the County of Los Angeles.

PASSED, APPROVED, AND ADOPTED THIS 15th DAY OF OCTOBER, 2018, by the following roll call vote:

AYE: NO: ABSENT: ABSTAIN:

President

ATTEST: Secretary

200

WALNUT VALLEY WATER DISTRICT...Yesenia Garduno began her career with the District on March 13, 2018....

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Transcript of WALNUT VALLEY WATER DISTRICT...Yesenia Garduno began her career with the District on March 13, 2018....