MOTION NO APPROVING CASH DISBURSEMENTS

Transcription

1 MINUTES OF MEETING BOARD OF DIRECTORS, ORANGE COUNTY WATER DISTRICT May 18, 2016, 5:30 p.m. President Green called to order the Mayl 8, 2016 regular meeting of the Orange County Water District Board of Directors at 5:30 p.m. in the Boardroom at the District office. Following the Pledge of Allegiance to the Flag, the Secretary called the roll and reported a quorum as follows. Directors Philip Anthony Denis Bilodeau Jordan Brandman Shawn Dewane Jan Flory Cathy Green Dina Nguyen Roman Reyna Stephen Sheldon Roger Yoh VISITOR PARTICIPATION Staff Michael Markus, General Manager Jeremy Jungreis, Acting General Counsel Janice Durant, District Secretary There were no visitors wishing to address the Board at this point in tonight s meeting. CONSENT CALENDAR The Consent Calendar was approved upon motion by Director Anthony, seconded by Director Dewane and carried [10-0] as follows, with the following abstentions: Directors Bilodeau and Brandman abstained on a portion of Item No. 1, Cash Disbursements (to Townsend Public Affairs, Inc.), and Director Bilodeau abstained on Item No. 6, Agreement to W.A. Rasic to Construct Manway Access into Talbert Barrier Pipeline, under the provisions of Government Code Ayes: Abstain: Abstain: Anthony, Bilodeau, Brandman, Dewane, Green, Flory, Nguyen, Reyna, Sheldon, Yoh Bilodeau, Brandman (Portion of Item No. 1, Cash Disbursements to Townsend Public Affairs) Bilodeau (Item No. 6 - Agreement to W.A. Rasicfor Manway Access into Talbert Barrier Pipeline 1. Approval of Cash Disbursements MOTION NO APPROVING CASH DISBURSEMENTS Payment of bills for the period April 14, 2016 through May 11, 2016 in the total amount of $14,097, is ratified and approved.

2 2. Approval of Minutes of Board Meeting MOTION NO APPROVING MINUTES OF BOARD MEETING The minutes of the Board of Directors meetings held April 6 and April 20, 2016 are approved as presented. 3 Third Revision to Easement Deed to City of Anaheim for Underground Utilities at Anaheim Lake RESOLUTION NO APPROVING THIRD REVISED EASEMENT DEED TO CITY OF ANAHEIM FOR UNDERGROUND UTILITIES AT ANAHEIM LAKE WHEREAS, pursuant to Resolution No adopted February 18, 2015, OCWD authorized three easements to the City of Anaheim for undergrounding electrical and telecommunication utilities along Miraloma Avenue, Anaheim, to improve and enhance the City s electric system, including the easement at Anaheim Lake; and WHEREAS, on March 18, 2015, the Board approved a revised easement to the City at Anaheim Lake to increase the width of the easement area; and pursuant to Resolution No adopted March 18, 2015, the City requested a second revised easement to change the location of the easement area; and WHEREAS, the City of Anaheim has requested and the Property Management Committee of this Board has recommended approval of a third revised Easement Deed for such underground utilities at Anaheim Lake to change the location and the size of the easement area; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby approve the third revised Easement Deed to the City of Anaheim to replace the Easement Deed recorded on June 2, 2015, as Document No which revises the location of the easement area; and, upon approval as to form by District General Counsel its execution by the District officers is authorized 4. Request for Quotes for On Call Property Acquisition Services MOTION NO AUTHORIZING REQUEST FOR QUOTES FOR ON CALL PROPERTY ACQUISITION SERVICES Issuance of a Request for Quotes for on-call Property Acquisition Services is authorized, and staff is directed to return to the Property Management Committee with a staff recommendation.

3 CONSENT CALENDAR ITEM RECOMMENDED FOR APPROV AL AT RETIREMENT COMMITTEE MEETING HELD APRIL (B) Deferred Compensation Plan Investment Line-Up Review and Red Flag Fund Review MOTION NO APPROVING 457(B) DEFERRED COMPENSATION PLAN INVESTMENT LINE-UP REVIEW AND RED FLAG FUND REVIEW The following actions in connection with the 401 (a) Money Purchase Plan and 457(b) Deferred Compensation Plan funds are hereby approved: Fund 401 (a) Portfolio Ivy Science And Technology Fund Class Y Franklin Small Cap Growth Fund Dreyfus Opportunistic Midcap Value Fund Dreyfus Active MidCap Fund Class I JPMorgan Large Cap Growth Fund Class A Fidelity Advisor@ New Insights Fund Class A Oakmark Fund Class I Hotchkis & Wiley Capital Income Fund Class A Putnam Income Fund Class A 457(b) Portfolio Ivy Science And Technology Fund Class Y Lord Abbett~Developing Growth Fund Class A Fidelity AdvisorE Small Cap Growth Fund Class A Goldman Sachs Small/Mid Cap Growth Fund Class IR Symbol WSTYX FSSAX DVLIX DNLRX OLGAX FNIAX OAKMX HWIAX PINCX WSTYX LAGWX FCAGX GTMTX Action Red Flag Red Flag Remove Add & Map funds from DVLIX Red Flag Red Flag Red Flag Red Flag Red Flag Red Flag Remove Add & Map funds from LAGWX Red Flag CONSENT CALENDAR ITEMS RECOMMENDED FOR APPROVAL AT WATER ISSUES COMMITTEE MEETING HELD MAY Agreement with W.A. Rasic to Construct Manway Access into Talbert Barrier Pipeline RESOLUTION NO APPROVING AGREEMENT WITH W.A. RASIC TO CONSTRUCT MANWAY ACCESS INTO THE TALBERT BARRIER PIPELINE RESOLVED, that issuance of an Agreement is authorized to W.A. Rasic Construction for an amount not to exceed $47,558 to construct a manway access into the Talbert Barrier Pipeline;

4 and upon approval as to form by District General Counsel, its execution by the District officers is authorized. Contract No. TAL : Talbert Barrier Well Redevelopment - Notice of Completion (Boart Longvear Company) RESOLUTION NO AUTHORIZING FILING OF NOTICE OF COMPLETION OF CONTRACT NO. TAL : TALBERT BARRIER WELL REDEVELOPMENT (BOART LONGYEAR COMPANY) WHEREAS, the District staff has submitted its report that Boart Longyear Company has completed work under Contract No. TAL , Talbert Barrier Well Redevelopment Project, and has recommended that the District accept completion of said work and that a Notice of Completion be filed for recordation and the balance of payment be made, pursuant to the terms and conditions of such contract; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby resolve as follows: Section 1: Work under such contract is accepted as complete and the District staff is authorized and directed to execute a Notice of Completion and record said Notice in the Office of the County Recorder. Section 2: Upon expiration of the interim lien period, providing no liens have been filed, payment of the balance due under such contract shall be made. 8. Agreement to Michael Baker International for Cathodic Protection Services and Corrosion Survey RESOLUTION NO AUTHORIZING AGREEMENT TO MICHAEL BAKER INTERNATIONAL FOR CATHODIC PROTECTION SERVICES AND CORROSION SURVEY RESOLVED, that issuance of an Agreement to Michael Baker International is authorized for an amount not to exceed $33,025 for Cathodic Protection and Corrosion Survey of OCWD Facilities; and, upon approval as to form by District General Counsel, its execution by the District officers is authorized.

5 Contract No. FB , Fletcher Basin Project: Amendment to Agreement with Butier for Construction Phase Services RESOLUTION NO AUTHORIZING ISSUANCE OF AMENDMENT TO AGREEMENT WITH BUTIER FOR CONTRUCTION PHASE SERVICES FOR CONTRACT NO. FB , FLETCHER BASIN PROJECT (BUTIER) RESOLVED, that issuance of Amendment No. 8 to Agreement No with Butier Construction Managers is authorized for $49,624 for construction phase services for the Fletcher Basin Project; and, upon approval as to form by District General Counsel, its execution by the District s officers is authorized. 10. Contract No. FV , Chemical Resistant Protective Coatings Project: File Notice of Completion (Socal Pacific Construction Corp. Dba National Coating & Lining Co.) RESOLUTION NO RATIFYING ISSUANCE OF CHANGE ORDERS TO CONTRACT NO. FV , CHEMICAL RESISTANT PROTECTIVE COATINGS PROJECT, (SOCAL PACIFIC CONSTRUCTION CORP. DBA NATIONAL COATING & LINING CO.), AND ACCEPTING COMPLETION AND AUTHORIZING FILING OF NOTICE OF COMPLETION WHEREAS, the District staff has submitted its report that SoCal Pacific Construction Corp. dba National Coating & Lining Co. has completed work under Contract No. FV , Chemical Resistant Protective Coatings Project; and WHEREAS, staff has advised of issuance of Change Order No. I to such contract in the amount of $19,000 to apply a Koester moisture barrier product to the floors of all areas of the project; WHEREAS, staff has further advised of issuance of Change Order No. 2 to such contract in the amount of $9,442 to prepare and apply chemical resistant protective coatings to a 9 x 22 concrete pad at the Research Center chemical storage area (Area 145); and WHEREAS, staff has recommended that the District accept completion of said work and that a Notice of Completion be filed for recordation and the balance of payment be made, pursuant to the terms and conditions of such contract; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby resolve as follows: Section 1: Issuance of Change Orders Nos. 1 and No. 2 to Contract No. FV is hereby authorized as set forth herein. Section 2: Work under such contract is accepted as cornplete and the District Secretary is authorized and directed to execute a Notice of Completion and record said Notice in the Office of the County Recorder.

6 Section 3: Upon expiration of the interim lien period, providing no liens have been filed, payment of the balance due under such contract shall be made. 11. La Palma Recharge Basin Project: Amendment to Agreement to Bonterra Psomas for Cultural Resources Monitoring and Amendment to Agreement to Stantee for Support Services RESOLUTION NO AUTHORIZING AMENDMENT TO LA PALMA RECHARGE BASIN PROJECT AGREEMENTS TO BONTERRA PSOMAS FOR CULTURAL RESOURCES MONITORING AND TO AGREEMENT TO STANTEC FOR SUPPORT SERVICES WHEREAS, pursuant to Resolution No. R adopted September 16, 2015, OCWD authorized an Agreement No to Bonterra Psomas for archaeological, paleontological, and Native American resources monitoring for the La Palma Basin Recharge Basin Project; and WHEREAS, pursuant to Resolution No adopted June 18, 2014, OCWD authorized Agreement No to Stantec Consulting Services for the La Palma Recharge Basin Design; and WHEREAS, the Water Issues Committee of this Board has recommended approval of Amendment No. I to such Agreement with Bonterra Psomas in the amount of $9,985 for additional archaeological, paleontological, and Native American resources monitoring; and WHEREAS, the Water Issues Committee has recommended issuance of Amendment No. 2 to such Agreement with Stantec Consulting Services, Inc. for an amount not to exceed $7,500 for additional out of scope engineering services in support of the design of the La Palma Recharge Basin Project; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby resolve as follows: Section 1: Amendment No. 1 to Agreement No with Bonterra Psomas is authorized in the amount of $9,985 for additional archaeological, paleontological, and Native American resources monitoring. Section 2: Amendment No. 2 to Agreement No with Stantec Consulting Services, Inc. is authorized for an amount not to exceed $7,500 for additional out of scope engineering services in support of the design of the La Palma Recharge Basin Project.

7 12. Agreement to W.A. Rasic Construction Company for Monitoring Well OCWD-T5 Site Improvements RESOLUTION NO AGREEMENT TO W.A. RASIC CONSTRUCTION COMPANY INC. FOR MONITORING WELL OCWD-T5 SITE IMPROVEMENTS RESOLVED, that issuance of an Agreement is authorized to W.A. Rasic Construction Company Inc. for an amount not to exceed $23,700 to replace the vault for OCWD monitoring well OCWD-T5, replace the surrounding sidewalk, and remove an adjacent tree; and upon approval as to form by District General counsel, its execution by the District officers is authorized. 13. Sunset Gap Seawater Intrusion Investigation: Amendment to Services Agreement No with Ninyo & Moore for Geotechnical Investigation RESOLUTION NO APPROVING AMENDMENT TO SERVICES AGREEMENT WITH NINYO & MOORE FOR GEOTECHNICAL INVESTIGATION FOR SUNSET GAP SEAWATER INTRUSION INVESTIGATION WHEREAS, pursuant to Resolution No adopted June 17, 2015, OCWD authorized issuance of Agreement No to Ninyo & Moore for geotechnical investigation services at OCWD BS13 well site as required by the Orange County Public Works, to assess the extent of construction damage to the Bolsa Chica Flood Control channel levee, and to design and construct an acceptable repair; and WHEREAS, the Water Issues Committee of this Board has recommended Amendment No. 1 to Agreement with Ninyo & Moore in the amount of $19,904 for additional out-of-scope geotechnical services required for the OCWD-BS13 geotechnical investigation; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby authorize Amendment No. 1 to Agreement No with Ninyo & Moore as described herein; and subject to approval as to form by District General Counsel, its execution by the District s officers is authorized. 14. OCWD Participation in Upper Santa Ana River Habitat Conservation Plan MOTION NO OCWD PARTICIPATION IN UPPER SANTA ANA RIVER HABITAT CONSERVATION PLAN Participation by the District in the Upper Santa Ana River Habitat Conservation Plan as a participating agency and funding partner is approved and payment of $118,400 to the San Bernardino Valley Municipal Water District for the District s cost share for development of the Habitat Conservation Plan is authorized.

8 15. Construction of Monitoring Wells for South Basin Groundwater Protection Project Remedial Investigation RESOLUTION NO APPROVING SOUTH BASIN ADDITIONAL MONITORING WELL PROGRAM: ADOPTING FINAL IS/MND, APPROVING GEOLOGIST S REPORT, AND AUTHORIZING ISSUANCE OF RFP FOR WELL CONSTRUCTION INSPECTION SERVICES WHEREAS, the District staff has advised that substantial Volatile Organic Compound (VOC) and perchlorate groundwater contamination has occurred in the shallow groundwater in the South Basin area of the Orange County groundwater basin and that this contamination has been detected in a deep Irvine Ranch Water District production well; and WHEREAS, the District has undertaken an Initial Study in accordance with Guidelines established under Article VI of the California Environmental Quality Act (CEQA) Cal. Admin. Code Section 15000, et. seq., and determined that a Mitigated Negative Declaration is the appropriate CEQA document with respect to the potential environmental impacts associated with the construction and sampling groundwater monitoring wells; and WHEREA S, such Initial Study/Mitigated Negative Declaration has determined that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions to the project have been made by or agreed to by the applicant; and WHEREAS, the District staff has further recommended issuance of a Notice Inviting Bids to retain a driller to install 24 monitoring wells in 6 locations; and WHEREAS, the District staff has further recommended issuance of a Request for Proposals to retain a consultant to oversee the field work to install 24 monitoring wells in 6 locations; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby resolve as follows: Section 1: The Board of Directors does hereby find that: The Initial Study identifies potentially significant effects on the environment, but (A) revisions in the project plans or proposals made by, or agreed to by, the District as the applicant before the proposed negative declaration and initial study were released for public review would avoid the effects or mitigate the effects to a point where clearly no significant effect on the environment would occur, and (B) there is no substantial evidence, in light of the whole record before the lead agency, that the project, as revised, may have a significant effect on the environment;

9 ii) The Initial Study/Mitigated Negative Declaration reflects the independent judgment and analysis of the Board of Directors of the District, as the lead agency for the project; and iii) Prior to approving the project, the Board of Directors of the District has considered the Initial Study/Mitigated Negative Declaration together with any comments received during the public review process, and any responses to such comments; Section 2: The Final Initial Study/Mitigated Negative Declaration for the South Basin Additional Monitoring Well Program is hereby adopted. Section 3: The Geologist s Report is hereby approved. Section 4: A project budget of $1,309,560 is hereby established. Section 5: The project is determined feasible, necessary and beneficial to the lands of the District, and is declared duly instituted. Section 6: Issuance of a Notice Inviting Bids for construction of the project, including 24 monitoring wells, is authorized. Section 7: Issuance of a Request for Proposals for well construction inspection services for the project, including borehole logging, field inspection during drilling and well installation, and two rounds of water sample collection and analysis is authorized. Section 8: Staff is authorized to file a Notice of Determination. CONSENT CALENDAR ITEMS RECOMMENDED FOR APPROVAL AT ADMINISTRATION AND FINANCE ISSUES COMMITTEE MEETING HELD MAY Monthly Cash Control Report MOTION NO RECEIVING AND FILING MONTHLY CASH CONTROL REPORT Receive and file Summary Cash and Cash Equivalents Control Reports dated April 30, Investment Portfolio Holdings Reports MOTION NO RECEIVING AND FILING INVESTMENT PORTFOLIO HOLDINGS REPORT The Investment Portfolio Holdings Reports dated April 30, 2016 is hereby received and filed. 9

10 18. Access License Agreements for Researchers Visiting District Laboratories and Facilities RESOLUTION NO APPROVING ACCESS LICENSE AGREEMENTS FOR RESEARCHERS VISITING DISTRICT LABORATORIES AND FACILITIES The Individual and Organizational Access License Agreements for researchers and visitors working at OCWD facilities are hereby approved as presented. 19. Resolutions for Mid-Basin Centennial Park Injection Project State Revolving Fund Loan Application RESOLUTION NO ESTABLISHING A DESIGNEE TO SIGN AND AUTHORIZE FINANCING AGREEMENTS WITH THE STATE WATER RESOURCES CONTROL BOARD FOR THE MID BASIN CENTENNIAL PARK INJECTION PROJECT RESOLVED, by the Board of Directors of the Orange County Water District that the General Manager is hereby authorized and directed to sign and file, for and on behalf of the Orange County Water District, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the planning, design, and construction of the Mid Basin Injection Project. RESOLVED FURTHER, that the Orange County Water District hereby agrees and further does authorize the aforementioned representative or his/her designee, to provide the assurances, certifications, and commitments required for any such financial assistance application, and the execution of related financial assistance agreements from the State Water Resources Control Board and any amendments or changes thereto. RESOLVED FURTHER, that the General Manager, or his/her designee, is designated to represent the Orange County Water District in carrying out the Orange County Water District s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the Orange County Water District and compliance with applicable state and federal laws. RESOLUTION NO ESTABLISHING DEDICATED SOURCE OF REVENUE FOR REPAYMENT OF STATE WATER RESOURCES CONTROL BOARD STATE REVOLVING FUND FINANCING FOR THE FISCAL YEAR CAPITAL IMPROVEMENT PROGRAM WHEREAS, the Orange County Water District (the "District") plans to enter into one or more financing agreements with the State Water Resources Control Board pursuant to the Clean Water State Revolving Fund (CWSRF), Seawater Intrusion Control Loan Program (SWIC), and/or Water Recycling Funding Program (WRFP) programs for the projects listed in the three-year 10

11 Capital Improvement Program Summary located in Section 8 of the approved fiscal year budget (the "Project/s"), as approved by the District on April 15, 2015; and WHEREAS, the CWSRF, SWIC, and WRFP requirements require each recipient to establish one or more dedicated sources of revenue for repayment of the CWSRF, SWIC, and/or WRFP assistance (except for grants); and WHEREAS, the District plans to dedicate Net Revenues (as such terms are defined in the installment Purchase Agreement, dated as of July 1, 2009, by and between the District and the OCWD Public Facilities Corporation) to the repayment of any and all CWSRF, SWIC, and WRFP financing for the "Project/s" on a parity with the District s obligation to make payments under all Bonds and Contracts (as such terms are defined in the Installment Purchase Agreement, dated as of July 1, 2009, by and between the District and the OCWD Public Facilities Corporation); NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby resolve as follows: The District hereby dedicates and pledges Net Revenues to payment of any and all Clean Water State Revolving Fund, Seawater Intrusion Control Loan Program, and/or Water Recycling Funding Program financing for the "Project/s" listed in the fiscal year Capital Improvement Program adopted by the District on April 15, So long as the financing agreement(s) is/are outstanding, the District s pledge hereunder shall constitute a lien in favor of the State Water Resources Control Board on the Net Revenues without any further action necessary. The District commits to collecting such Net Revenues throughout the term of such financing and until the District has satisfied its repayment obligation thereunder unless a modification or change is approved in writing by the State Water Resources Control Board. So long as the financing agreement(s) is/are outstanding, the District commits to maintaining Net Revenues at levels sufficient to meet its obligations under the financing agreement(s). RESOLUTION NO STATING OCWD INTENTION TO REIMBURSE ITSELF FOR EXPENDITURES PAID PRIOR TO ISSUANCE OF OBLIGATIONS OR APPROVAL BY STATE WATER BOARD OF THE PROJECT FUNDS FOR THE MID BASIN CENTENNIAL PARK INJECTION PROJECT WHEREAS, the Orange County Water District (the "Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and WHEREAS, the Agency intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and 11

12 WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), and WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the Agency desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the Agency; and WHEREAS, the Agency has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for the Expenditures from the proceeds of the Obligations. NOW, THEREFORE, THE AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: Section 1: The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds. Section 2: The reasonably expected maximum principal amount of the Project Funds is $34,121, Section 3: This resolution is being adopted no later than 60 days after the date on which the Agency will expend moneys for the portion of the Project costs to be reimbursed with Project Funds. Section 4: Each Agency expenditure will be of a type properly chargeable to a capital account under general federal income tax principles. Section 5: To the best of our knowledge, this Agency is not aware of the previous adoption of official intents by the Agency that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. Section 6: This resolution is adopted as official intent of the Agency in order to comply with Treasury Regulation and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs. Section 7: All the recitals in this Resolution are true and correct and this Agency so finds, deterrnines and represents. 12

13 20. Agreement to Beavens Systems for Scada Maintenance at Field Headquarters RESOLUTION NO APPROVING AGREEMENT TO BEAVENS SYSTEMS INC. FOR SCADA MAINTENANCE AT FIELD HEADQUARTERS RESOLVED, that issuance of an Agreement is authorized to Beavens Systems, Inc. for an amount not to exceed $25,000 for SCADA design, installation, and maintenance; and, upon approval as to form by District General Counsel, its execution by the District officers is authorized. 21. Budget to Actual Report for Third Quarter FY MOTION NO RECEIVING AND FILING BUDGET TO ACTUAL REPORT FOR THIRD QUARTER FY The Budget to Actual Report for Third Quarter of Fiscal Year ending March 31, 2016 is hereby received and filed. 22. Fiscal Year Water Purchases MOTION NO AUTHORIZING USING FY WATER BUDGET FUNDS TO CONTINUE PURCHASING METROPOLITAN WATER DISTRICT UNTREATED FULL SERVICE SUPPLIES IN MAY AND JUNE 2016 Staff is authorized to begin using the FY water budget funds to continue purchasing Metropolitan Water District untreated full service supplies in May and June Pre-Audit Meeting with Auditors for Compliance with Auditing Standards Board - Standard No. 114 MOTION NO SCHEDULING PRE-AUDIT MEETING WITH AUDITORS FOR COMPLIANCE WITH AUDITING STANDARDS BOARD - STANDARD NO. 114 Directors Dewane and Anthony are hereby selected to attend a pre-audit meeting with the auditors at the conclusion of the June 2016 Administration/Finance Issues Committee meeting. MATTERS FOR CONSIDERATION The following item was advanced on tonight s Agenda at the request of Director Nguyen. 13

14 25. Green Acres Project Future Direction Engineer Ben Smith recalled that the District s Green Acres Project (GAP) which began operation in 1991 provides non-potable recycled water, primarily for irrigation purposes, to 107 sites in the cities of Newport Beach, Fountain Valley, Santa Ana, Mesa Water District, and the Orange County Sanitation District. He noted that in fiscal year , approximately 4,320 acre-feet of water was served to these customers. Mr. Smith advised that the GAP system consists of a treatment plant, two reservoirs and 36 miles of District-owned pipeline, and stated that the future direction of GAP rests with the Board. Mr. Smith stated staff recommends continued operation of the GAP as it currently serves non-potable water to 107 different sites primarily in the coastal area of the District and reduces demand on higher quality water sources such as groundwater and imported water, reduces seawater intrusion gradients, provides a tool for water retail agencies to utilize for water conservation, and diversifies the region s water portfolio. He stressed that the District, retail agencies, and end-users have made significant investments into GAP, noting that discontinuance of GAP would place a financial burden on water retailers and end-users to convert to potable sources and force them to pay higher water rates. Mr. Smith presented various determinations for the Board consideration that included: 1) continuation of the GAP operation, 2) ways to coordinate the GAP system with the GWRS; 3) allowing additional GAP users; and 4) setting the selling price of GAP water. The Board discussed various aspects of the GAP program, and noted that the GAP sits on valuable land resources that might be needed in the future. The Board stated that consideration must also be given as to whether GAP water could be put into the GWRS system if drought restrictions were imposed, and whether OCWD could change the contractual agreements to include a clause that terminates the contract if the water is needed for drinking water. The Board also noted the importance of ensuring that OCWD does not expend any additional funds to expand the existing pipelines. Big Canyon Country Club representative Larry Tucker noted that the Country Club has concerns about the way costs are being allocated. He urged the Board to defer this item to Committee to vet out rate issues. He also expressed concerns that the funds invested by the Country Club into the GAP program would be wasted if the GAP program were discontinued. As an end-user, he stated they have no control over the size of the GAP facility or the volume of GAP water that is demanded by GAP customers therefore they don t believe they should have to absorb any portion of costs that rationally should be allocated to the unused capacity of the GAP plant. The Board had numerous questions requiring additional staff analysis and discussion. It was determined to defer discussion of this item to an upcoming Water Issues Committee meeting for greater discussion. The following action was taken. (Director Brandman left the meeting at 6:18 p.m. prior to the vote on this item.) 14

15 MOTION NO REFEERING CONSIDERATION OF GREEN ACRES PROJECT FUTURE DIRECTION TO WATER ISSUES COMMITTEE Upon motion by Director Nguyen, seconded by Director Flory and carried [9-0], discussion of the Green Acres Project future direction is hereby referred to the Water Issues Committee for further discussion. Ayes: Anthony, Bilodeau, Dewane, Green, Flory, Nguyen, Reyna, Sheldon, Yoh Absent: Brandman Director Nguyen left at this point in tonight s meeting. 24. New Municipal Water District of Orange County (MWDOC) Annual Charge to Orange County Water District General Manager Markus announced that at its meeting earlier today, the MWDOC Board adopted a new annual fee to OCWD (Option 1A) under which OCWD s estimated annual fee is $392,666. President Green requested information on the services OCWD will get for the additional fee and stressed the need for more OCWD representation at the Metropolitan Water District. Director Flory suggested scheduling a study session to provide an overview of the relationship between OCWD and MWDOC which would include MWDOC s methodology for imposing a new fee. President Green requested a separate meeting be scheduled with the Board officers of both agencies. MOTION NO DIRECTING STAFF TO SCHEDULE A WORKSHOP TO DISCUSS THE OCWD/MWDOC RELATIONSHIP AND THE METHODOLOGY FOR MWDOC IMPOSING A NEW FEE Upon motion by Director Anthony, seconded by Director Dewane and carried [8-0], staff is directed to agendize a workshop to review the District s relationship with the Municipal Water District of Orange County (MWDOC) and the methodology used by MWDOC for implementing its new charge. Ayes: Anthony, Bilodeau, Dewane, Green, Flory, Reyna, Sheldon, Yoh Absent: Brandman, Nguyen INFORMATIONAL ITEMS 26. Groundwater Remediation Monthly Update Director of Special Projects Bill Hunt provided an update on groundwater remediation efforts. He stated that OCWD has applied for $33.5 million in California Prop.1 grants for four projects and noted that OCWD will host a Prop. 1 Grant workshop on June 13. Mr. Hunt also provided updates on the three major litigation efforts including the North Basin, the South Basin, and MTBE. The North Basin updates included a description of the RI/FS statement of work being negotiated with the EPA, an update on the progress of the "administrative order on consent" being negotiated with the EPA legal team. Mr. Hunt informed the Board that the EW-1 15

16 remediation well was fully designed and sent out for technical review to both the City of Fullerton and the Orange County Sanitation District. He provided a status update of the North Basin consultant retention agreements and the collaboration with Northrop Grumman. South Basin updates included the progress of regulatory review agreements with both the DTSC and the RWQCB. The remedial investigation status for South Basin was also provided. With regard to MTBE, Mr. Hunt informed the Board that settlement offers and counter offers had been exchanged with the oil companies. He indicated that negotiations for settlement were ongoing in parallel with trial preparations. 27. Pending Federal Environmental Protection Agency Health Advisories Director of Regulatory Affairs Jason Dadakis updated the Board on a pending federal Environmental Protection Agency (EPA) lifetime Health Advisory (HA) for Perfluorooctanoic Acid (PFOA) and Perfluorooctane Sulfonate (PFOS) in drinking water, noting that HAs serve as guidance to water utilities and are not enforceable. He stated that the EPA previously developed provisional HAs for PFOA and PFOS in 2009 based on short term exposure, but noted a new pending lifetime health advisory is scheduled to be released tomorrow. 28. Water Resources Report - April 2016 There was no discussion of this item. 29. Santa Ana Watershed Project Authority Activities Director Anthony updated the Board on recent SAWPA activities. 30. Groundwater Producer Meeting Minutes - May 11, 2016 There was no discussion of this item. 31. COMMITTEE/CONFERENCE/MEETING REPORTS A) Committee Reports The Board reported on the following Committee meetings and noted the Minutes/Action Agendas were included in tonight s Board packet. April 22 April 26 May 11 May 12 Property Management Committee Retirement Committee Water Issues Committee Administration/Finance Issues Committee 16

17 B) Reports on Conferences/Meetings Attended at District Expense (at which a quorum of the Board was presenf) Directors Anthony, Green, Dewane and General Manager Markus reported on their attendance at the Association of California Water Agencies Conference in Monterey the week of May VERBAL REPORTS In light of the recent corruption allegations against the City of Beaumont officials, Director Dewane stressed the need for the Board review of the bills, warrants, and check registers prior to each Board meeting. President Green advised that she, General Manager Markus, and Greg Woodside met in Washington DC regarding Senator Feinstein s Bill. General Manager Markus advised that he recently attended a conference in Abu Dhabi to accept an award for the GWRS. Director Dewane noted that he recently met with Senator Wicker and Dana Rohrbacher and invited them for a GWRS tour. 33. ADJOURNMENT TO CLOSED SESSION The Board adjourned to Closed Session at 7:16 p.m. as follows: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section (D)(1)]: One Case: City of Rialto Wastewater Change Petition before State Water Resources Control Board (Petition No. WW0079) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section (D)(1)]: One Case: Yellow Jacket Drilling Services, LLC, et al. v. Orange County Water District, Orange County Superior Court No CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION [Government Code Section (d)(2)]: One Case: (Demand and Tender of Defense in Yellow Jacket Drilling Services, LLC, et al. v. County of Orange, Orange County Superior Court No , based on indemnity provision in County Encroachment Permit) 17

18 RECONVENE IN OPEN SESSION The Board reconvened in Open Session at 7:40 p.m. whereupon Acting General Counsel Jeremy Jungreis announced that the Board, by a vote of 6-0, took the following action in Closed Session: RESOLUTION NO. CS AUTHORIZING WITHDRAWAL OF EXISTING LITIGATION: CITY OF RIALTO WASTEWATER CHANGE PETITION BEFORE THE STATE WATER RESOURCES CONTROL BOARD (PETITION NO. WW0079) Ayes: Absent: Bilodeau, Dewane, Flory, Green, Sheldon, Yoh Anthony Brandman Nguyen and Brandman ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 7:41 p.m. _ ce Durant, Secretary Cathy GreegPres,~Ï 18