NOTICE OF MEETING BOARD OF DIRECTORS AGENDA

Transcription

1 MEETING DATE: Tuesday, January 15, 2019 TIME: 7:30 p.m. NOTICE OF MEETING BOARD OF DIRECTORS LOCATION: MMWD Board Room, 220 Nellen Ave., Corte Madera, CA Posting Date: January 11, Nellen Avenue Corte Madera CA AGENDA ITEM CALL TO ORDER ADOPT AGENDA PUBLIC EXPRESSION* DIRECTORS AND GENERAL MANAGER S ANNOUNCEMENTS RECOMMENDATION APPROX. START 7:30 p.m. 7:38 p.m. 7:40 p.m. 7:50 p.m. 7:55 p.m. CONSENT CALENDAR ITEMS Minutes of January 2, 2019 meeting Approve 2. Amendment No. 1 to Bay Area Regional Reliability Memorandum of Agreement (BARR MOA) Approve 3. General Manager s Monthly Report for December Approve REGULAR CALENDAR 4. Water Production and Storage Report Information 8:00 p.m. 5. Committee Assignments for 2019 Appoint members 8:05 p.m. 6. Assignment of Divdat Contract to Diamond Approve 8:10 p.m. Marketing 7. Local Agency Formation Commission (LAFCo) Call for Nominations Approve 8:15 p.m. 8. Fill Vacancies: a. Water Treatment Plant Trainee II b. Account Clerk II Approve Approve 8:20 p.m. 9. Future Meeting Schedule Information 8:25 p.m. MMWD BOARD OF DIRECTORS: Larry Bragman, Jack Gibson, Cynthia Koehler, Armando Quintero, Larry Russell *Anyone wishing to speak on an item other than those listed on this agenda will be recognized at this time. We ask any person wishing to be heard to come to the podium to address the board and state your name and address for the public record. A 3-minute limit is customary; however the committee chair may adjust the actual time allotted to accommodate the number of speakers. **All matters listed on the consent calendar are considered to be routine and will be enacted by a single action of the board, unless specific items are removed from the consent calendar during adoption of the agenda for separate discussion and action. - over -

2 ADA NOTICE AND HEARING IMPAIRED PROVISIONS: The board room is equipped with sound amplifying units for use by the hearing impaired. The units operate in conjunction with the room's sound system. You may request the personal sound amplifier from the Board Secretary for use during meetings. In accordance with the Americans with Disabilities Act and California Law, it is the policy of the Marin Municipal Water District to offer its public programs, services, and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, an agenda, and/or agenda packet in an appropriate alternative format, or if you require other accommodation, please contact Stephanie Eichner-Gross at (415) , at least two days in advance of the meeting. Advance notification within this guideline will enable the district to make reasonable arrangements to ensure accessibility. * * * * * * * * * * * * * * * * INFORMATION PACKETS ARE AVAILABLE FOR REVIEW AT THE CIVIC CENTER LIBRARY, CORTE MADERA LIBRARY, FAIRFAX LIBRARY, MILL VALLEY LIBRARY, MMWD OFFICE, AND MMWD WEBSITE (MARINWATER.ORG) * * * * * * * * * * * * * * * * FUTURE BOARD MEETINGS: Tuesday, February 5, 2019, 7:30 p.m. Tuesday, February 19, 2019, 7:30 p.m. MMWD Board Room MMWD Board Room

3 Boa ITEM NO. 1 MEETING DATE: January 15, 2019 MEETING: Board of Directors SUBJECT: Minutes STAFF REPORT SUBMITTED BY: District Secretary RECOMMENDED ACTION: Approve minutes from the January 2 meeting. ATTACHMENTS Minutes

4 ** D R A F T ** MMWD Board of Directors meeting January 2, 2019 THE BOARD OF DIRECTORS OF MARIN MUNICIPAL WATER DISTRICT Minutes of the meeting of the Board of Directors held on Tuesday, January 2, 2019 at 220 Nellen Avenue, Corte Madera, California. Directors present: Directors absent: Larry Bragman, John C. Gibson, Cynthia Koehler, Armando Quintero (by teleconference) and Larry L. Russell None CALL TO ORDER Vice President Bragman called the meeting to order at 7:30 p.m. ITEM 1 ORGANIZATION OF BOARD OF DIRECTORS A. Election of President On motion of Director Gibson, seconded by Director Koehler, the Board elected Director Bragman to serve as President of the Board by the following roll call vote: Ayes: Noes: Absent: Abstain: Directors Bragman, Gibson, Koehler, Quintero and Russell None None None B. Election of Vice President: On motion of Director Koehler, seconded by Director Bragman, the Board elected Director Gibson to serve as Vice President of the Board by the following roll call vote: Ayes: Noes: Absent: Abstain: Directors Bragman, Gibson, Koehler, Quintero and Russell None None None C. Board Meeting Calendar for 2019 The Board reviewed the calendar of meeting dates for

5 ** D R A F T ** MMWD Board of Directors meeting January 2, 2019 On motion of Director Gibson, seconded by Director Koehler, the Board adopted the calendar for 2018 by the following roll call vote: Ayes: Noes: Absent: Abstain: Directors Bragman, Gibson, Koehler, Quintero and Russell None None None D. Appointment of Board Members to Board Committees Director Bragman deferred item 1. D. Appointment of Committee Member to the January 15, 2019 Board of Director s meeting. AGENDA On motion of Director Gibson, seconded by Director Koehler the Board adopted agenda by the following roll call vote: Ayes: Noes: Absent: Abstain: Directors Bragman, Gibson, Koehler, Quintero and Russell None None None PUBLIC EXPRESSION Eric Morey, Woodacre, expressed dissatisfaction with the response he received concerning a public records request he submitted to District. Laura Chariton, expressed concern regarding the safety of hikers on watershed trails due to speeding mountain bikers. DIRECTORS' AND GENERAL MANAGER S ANNOUNCEMENTS None. CONSENT CALENDAR (ITEMS 2-4) On motion of Director Gibson, seconded by Director Russell, the Board approved Consent Calendar Items 2-4 by the following roll call vote: 2

6 ** D R A F T ** MMWD Board of Directors meeting January 2, 2019 Ayes: Noes: Absent: Abstain: ITEM 2 ITEM 3 ITEM 4 Directors Bragman, Gibson, Koehler, Quintero and Russell None None None Minutes of November 20 and December 4 as presented Alpine Dam Intake Valve Repair Project: Resolution No awarding Contract No to Valentine Corporation General Manager s Monthly Report for November ITEM 5 WATER PRODUCTION AND STORAGE REPORT Carl Gowan, Principal Engineer, presented the staff report and noted that current 7-day average production was slight below last year, stream release were approximately 19 mgd, fiscal year rainfall was 15 and reservoir storage was 72% of capacity. A brief question and answer period followed. ITEM 6 FUTURE AGENDA ITEMS Charlie Duggan, Administrative Services Division Manager, presented the staff report and reviewed upcoming items. ADJOURNMENT There being no further business, the meeting of January 2, 2019, was adjourned at 7:43 p.m. ATTEST: President, Board of Directors Secretary 3

7 STAFF REPORT ITEM NO. 2 MEETING DATE: January 15, 2019 MEETING: Board of Directors SUBJECT: SUBMITTED BY: RECOMMENDED ACTION: First Amendment of the Memorandum of Agreement to Participate in the Bay Area Regional Reliability Plan Michael Ban, P.E., Division Manager Environmental & Engineering Services Division Approve Resolution No authorizing the General Manager to execute the First Amendment of the Memorandum of Agreement to Participate in the Bay Area Regional Reliability Plan. EXECUTIVE SUMMARY: This item was reviewed by the District Operations Committee on December 21, 2018, and is referred to the Board with a recommendation for action as shown above. MMWD along with seven other Bay Area water agencies providing water supply for six million customers in the Bay Area executed the Memorandum of Agreement (MOA) to Participate in the Bay Area Regional Reliability (BARR) Plan in 2015, and to cooperatively address water supply reliability concerns and drought preparedness on a mutually beneficial and regionally focused basis. The MOA expires December 31, The First Amendment to the MOA extends the term to December 31, It also provides the framework for those BARR agencies contemplating water transfers to develop a Bay Area Regional Marketing Program, which will be implemented with the help of a grant from the U. S. Bureau of Reclamation. MMWD is not participating in the Bay Area Regional Marketing Program. However, as a BARR partner, MMWD retains the option to participate in other future BARR initiatives if it chooses to do so. FISCAL IMPACT: YES NO X FISCAL YEAR: BACKGROUND: Amid the recent California drought in 2014, eight Bay Area water agencies, including the Marin Municipal Water District, East Bay Municipal Utility District, Contra Costa Water District, Alameda County Water District, Santa Clara Valley Water District, Zone 7 Water Agency, the Bay Area Water Supply and Conservation Agency, and the San Francisco Public Utilities Commission came together to form the Bay Area Regional Reliability (BARR) Partnership. The Partnership was established to cooperatively address water supply reliability concerns and drought preparedness on a mutually beneficial and regionally focused basis.

8 First Amendment of the Memorandum of Agreement to Participate in the Bay Area Regional Reliability Plan January 15, 2019 Page 2 The first step taken by the Parties was to adopt a set of foundational principles to guide partnership development in To further this mission, the BARR agencies executed a Memorandum of Agreement in 2015 to participate in the Bay Area Regional Reliability Plan, under which each agency committed $50,000 to support development of the BARR Plan. The MOA expires December 31, The MOA paved the way for the Partnership to apply for, and receive, in August 2016, a U. S. Bureau of Reclamation grant of $200,000, through its WaterSMART program, for preparation of the Bay Area Regional Reliability Drought Contingency Plan (DCP). The BARR DCP was completed in December 2017 and addressed drought related vulnerabilities through consideration of drought response actions and potential mitigation measures that would increase regional water supply reliability and benefit multiple agencies. One of the DCP s drought mitigation measures, called the Bay Area Regional Water Marketing Program (Marketing Program), is an important first step for those BARR agencies contemplating water transfers, as it will help to identify and resolve barriers to moving different types of water through the region. MMWD is not participating in the Marketing Program since there is no intertie between MMWD and another BARR agency. The BARR has received a $400,000 grant from the U. S. Bureau of Reclamation for the Marketing Program. An amendment to the BARR MOA is necessary to describe the roles and responsibilities of the agencies participating in the Marketing Program. Key provisions of the First Amendment to the MOA include (see Attachment 1): Extends the term of the Agreement from December 31, 2018 to December 31, Describes actions to be taken by BARR agencies participating in the Marketing Program. Even though MMWD is not participating in the Marketing Program, participation in the BARR provides the district the opportunity, if it so chooses, to jointly work on future regional reliability and drought response efforts with the other BARR agencies. In summary, district staff recommends the District Operations Committee review and refer this item to the Board with the committee s recommendation to approve Resolution No authorizing the General Manager to execute the First Amendment of the Memorandum of Agreement to participate in the Bay Area Regional Reliability Plan. STRATEGIC PLAN ALIGNMENT: The requested action aligns with the district s Strategic Plan Goal 1 (Water Supply Resiliency). REVIEWED BY: A.S.D Manager/Treasurer NA X General Counsel X NA General Manager X NA

9 First Amendment of the Memorandum of Agreement to Participate in the Bay Area Regional Reliability Plan January 15, 2019 Page 3 ATTACHMENTS: 1. Resolution No Authorizing the General Manager to Execute the First Amendment to the Memorandum of Agreement to Participate in the Bay Area Regional Reliability Plan 2. First Amendment to the Memorandum of Agreement to Participate in the Bay Area Regional Reliability Plan

10 MARIN MUNICIPAL WATER DISTRICT RESOLUTION NO AUTHORIZING THE GENERAL MANAGER TO EXECUTE THE FIRST AMENDMENT OF THE MEMORANDUM OF AGREEMENT TO PARTICIPATE IN THE BAY AREA REGIONAL RELIABILITY PLAN WHEREAS, on May 20, 2014, the Board of Directors of the Marin Municipal Water District adopted Resolution No which approved the Bay Area Regional Reliability Principles (BARR Principles) and expressed the District s interest to work cooperatively with seven other Bay Area water agencies to address water supply reliability concerns; and WHEREAS, in 2015, the BARR Partner agencies executed a Memorandum of Agreement (MOA) to participate in the Bay Area Regional Reliability Plan; and WHEREAS, the MOA paved the way for the Partnership to apply for, and receive, in August 2016, a U. S. Bureau of Reclamation grant for preparation of the Bay Area Regional Reliability Drought Contingency Plan (DCP), which was completed in December 2017 and addressed drought related vulnerabilities through consideration of drought response actions and potential mitigation measures that would increase regional water supply reliability and benefit multiple agencies; and WHEREAS, one of the DCP s drought mitigation measures, called the Bay Area Regional Water Marketing Program (Marketing Program), will help the BARR member agencies wishing to conduct water transfers to identify and resolve barriers to moving different types of water through the region; and WHEREAS, BARR has received a $400,000 grant from the U. S. Bureau of Reclamation for preparation of the Marketing Program; and WHEREAS, the First Amendment to the BARR MOA describes the roles and responsibilities of the agencies participating in the Marketing Program and extends the term of the MOA from December 31, 2018 to December 31, 2021; and WHEREAS, even though MMWD is not participating in the Marketing Program since there is no intertie between MMWD and another BARR agency, continued participation in the BARR provides the district the opportunity, if it so chooses, to jointly work on future regional reliability and drought response efforts with the other BARR agencies; and

11 Resolution No Page 2 NOW, THEREFORE IT BE RESOLVED that the Board of Directors of the Marin Municipal Water District authorizes the General Manager to execute the First Amendment to the Memorandum of Agreement to Participate in the Regional Reliability Plan. PASSED AND ADOPTED this 15th day of January, 2019 by the following vote of the Board. AYES: NOES: ABSENT: ATTEST: President, Board of Directors Secretary

12 FIRST AMENDMENT TO MEMORANDUM OF AGREEMENT TO PARTICIPATE IN THE BAY AREA REGIONAL RELIABILITY PLAN This First Amendment to the Memorandum of Agreement to Participate in the Bay Area Regional Reliability Plan ( the First Amendment ) is entered into as of the last date next to the signatures below and as transcribed here [ ], by and between the Alameda County Water District ( ACWD ), the Alameda County Flood Control and Water Conservation District - Zone 7 ( Zone 7 Water Agency or Zone 7 ), City & County of San Francisco acting by and through the Public Utilities Commission ( SFPUC ), the Bay Area Water Supply and Conservation Agency ( BAWSCA ), Contra Costa Water District ( CCWD ), East Bay Municipal Utility District ( EBMUD ), Marin Municipal Water District ( MMWD ), and Santa Clara Valley Water District ( SCVWD ) referred collectively herein as the Parties and singularly as a Party. This First Amendment sets forth the respective roles and responsibilities of ACWD, Zone 7, SFPUC, BAWSCA, CCWD, EBMUD, MMWD, and SCVWD in regard to the Bay Area Regional Reliability Regional Water Market Program. RECITALS 1. On September 18, 2015, the Parties entered into a Memorandum of Agreement to Participate in the Bay Area Regional Reliability Plan (the MOA ) relative to development of a Bay Area Regional Reliability Drought Contingency Plan (the BARR Plan ). 2. On June 24, 2015, EBMUD, acting on behalf of the Parties, applied for a $200,000 grant from the U.S. Bureau of Reclamation ( Reclamation ) under its WaterSMART: Drought Contingency Planning Grants for Fiscal Year 2015 funding opportunity, to help fund development of the BARR Plan. 3. EBMUD, acting as Contracting Entity pursuant to the MOA, procured and entered into an agreement with a consultant for preparation of the BARR Plan. 4. The Parties submitted the final BARR Plan to Reclamation and on December 14, 2017, Reclamation officially accepted the BARR Plan. 5. The BARR Plan recommended a suite of fifteen Drought Mitigation Measures that the Parties could undertake to improve drought resilience and water supply reliability. One of the Drought Mitigation Measures was the implementation of a Regional Water Market Program to help facilitate regional transfers and exchanges. { ;1} 1

13 6. On April 19, 2017, EBMUD, acting on behalf of the Parties, applied for a $400,000 grant from Reclamation under its Water Marketing Strategy Grants for Fiscal Year 2017 funding opportunity to support development of the Regional Water Market Program. 7. On September 21, 2018, Reclamation and EBMUD executed a grant assistance agreement (number R17AP00315) for the Regional Water Market Program ( Reclamation Grant Funding Agreement ). 8. ACWD, Zone 7 Water Agency, SFPUC, BAWSCA, CCWD, EBMUD, and SCVWD wish to work collaboratively to develop the Regional Water Market Program. 9. The Parties now desire to extend the term of the MOA and to add necessary provisions related to the Regional Water Market Program. AGREEMENT NOW, THEREFORE, for valuable consideration which is hereby acknowledged by the Parties, the Parties agree as follows: Section 1: Extending Term of MOA The Term of the MOA is extended to December 31, Section 2: Regional Water Market Program- Definition Regional Water Market Program is one of the Drought Mitigation Measures identified in the BARR Plan and involves the development of a strategy document to help facilitate regional transfers and exchanges. Section 3: Participating Parties Partners - Definition Seven of the original BARR Partners will work collaboratively to develop the Regional Water Market Program. These seven partner agencies ( Participating Partners ) are: ACWD, Zone 7 Water Agency, SFPUC, BAWSCA, CCWD, EBMUD, and SCVWD. MMWD is not participating in the Regional Water Market Program but remains a signatory to the MOU and member of the overall BARR partnership. Section 4: Purpose The purpose of this Amendment is to: a) Define the roles and responsibilities of each Participating Partner for preparing the Regional Water Market Program. All work associated with the { ;1} 2

14 Regional Water Market Program is to be conducted in accordance with the MOA and this Amendment. b) Establish the guidelines and principles for cost sharing between the Participating Partners. Section 5: Regional Water Market Program Work to be Performed The Regional Water Market Program will be developed with cooperative input from the Participating Partners and a hired consultant. The Regional Water Market Program will be completed according to the scope set forth in Exhibit A of the Reclamation Grant Funding Agreement, which is attached to this First Amendment as Exhibit 1 and incorporated herein as if fully set forth. Section 6: Regional Water Market Program Regulatory Approvals, Environmental Approvals, Environmental Compliance and Environmental Reviews The Regional Water Market Program may include one or more pilot transfer/exchange(s). The Participating Partners agree to work cooperatively to ensure that, prior to implementing any pilot transfer/exchange as part of this project, all necessary CEQA, NEPA, and ESA requirements will be met. Section 7: Regional Water Market Program Responsibilities of the Parties The Participating Partners will work cooperatively to develop the Regional Water Market Program, including: committing staff time; sharing relevant engineering, permitting, regulatory, and operational information regarding each Party s Participating Partner s own facilities and permit as needed for completion of the Regional Water Market Program; providing access to facilities and operational data that may be needed for developing the Regional Water Market Program; providing engineering oversight and review of Regional Water Market Program work products. Section 8: Regional Water Market Program Cost Sharing and Payment Pursuant to Article 8.f. of the MOA, the Parties hereby agree that any unused funds from the completion of the BARR Plan will be expended on the Regional Water Market Program. The Parties have obtained an additional $400,000 in grant funding for preparation of the Regional Water Market Program. The Parties Participating Partners agree to contribute funds, including in-kind services, for completion of the Regional Water Market Program as shown in the attached Exhibit 2 to this First Amendment which is attached hereto and incorporated herein as if fully set forth. The costs for implementation of any pilot transfer(s)/exchange(s) conducted as part of the Regional Water Market Program will be paid by the benefitting Party Participating Partner or PartiesPartners. { ;1} 3

15 i) Agency staff time as incurred by one or more Party to this First Amendment is not reimbursable. ii) The Contracting Entity will provide each Consultant invoice received to each Party Participating Partner as a means to record work progress, share budgetary status, and identify any disputes as detailed in Article 7.d of the MOA. iii) If, as based on the proposed Consultant s budget as compared with the total funding collected, there are monies remaining, those monies shall be considered as contingency funds. The Parties Participating Partners must develop a Consensus Agreement before being able to access any contingency funds. Contingency funds may be used to pay for costoverruns. iv) If there is a cost overrun by the Consultant, the Parties Participating Partners will be contacted and a proposed response or remedy identified. The Consultant s contract will clearly state that budget overruns will not be reimbursed without the express agreement of the Parties. v) Within ninety days following the completion of all work described in this Agreement, a cost true-up will be completed by Contracting Entity to determine the actual costs for the Regional Water Market Program. If the actual costs add up to less than that estimated in Exhibit 2, the Contracting Entity will refund each Party Participating Partner its proportionate share of the unused funds or, if the Parties subsequently agree to proceed with follow-up BARR work or activities, the unused funds may be expended on such efforts. No work on the Regional Water Market Program shall commence until this First Amendment has been executed by all Parties. Pursuant to Article 11 of the MOA, if a single Party Participating Partner chooses to terminate its participation in the Regional Water Market Program the terminating Party Participating Partner shall not be refunded any remaining amount, if any, of its financial contribution. Section 9: Hold Harmless, Indemnification, and Remedies Each and every provision of Article 9 of the MOA shall remain in full force and effect. Except as set forth above, each and every provision of the MOA shall remain in full force and effect. This First Amendment may be executed in counterpart. Facsimile and electronic signatures shall be binding. { ;1} 4

16 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment. ALAMEDA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ZONE 7 (ZONE 7 WATER AGENCY) VALERIE PRYOR General Manager { ;1} 5

17 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment. ALAMEDA COUNTY WATER DISTRICT ROBERT SHAVER General Manager { ;1} 6

18 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment. CITY AND COUNTY OF SAN FRANCISCO, PUBLIC UTILITIES COMMISSION General Manager { ;1} 7

19 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment. CONTRA COSTA WATER DISTRICT APPROVED AS TO FORM: DOUGLAS E. COTY General Counsel JERRY BROWN General Manager { ;1} 8

20 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment. BAY AREA WATER SUPPLY AND CONSERVATION AGENCY NICOLE SANDKULLA Chief Executive Officer/General Manager { ;1} 9

21 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment. EAST BAY MUNICIPAL UTILITY DISTRICT APPROVED AS TO FORM: CRAIG S. SPENCER General Counsel ALEXANDER R. COATE General Manager { ;1} 10

22 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment. MARIN MUNICIPAL WATER DISTRICT BENNETT HORENSTEIN General Manager { ;1} 11

23 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment. SANTA CLARA VALLEY WATER DISTRICT NORMA J. CAMACHO Chief Executive Officer { ;1} 12

24 EXHIBIT 2 TO THE FIRST AMENDMENT REGIONAL WATER MARKET BUDGET FUNDING BUDGET ITEM DESCRIPTION BARR PARTNERS RECLAMATION TOTAL Salaries and Wages (In-Kind) EBMUD $68,160 $68,160 CCWD $22,708 $22,708 SFPUC $6,663 $6,663 ACWD $26,183 $26,183 SCVWD $25,956 $25,956 BAWSCA $22,439 $22,439 Zone 7 Water Agency $17,126 $17,126 Fringe Benefits (In-Kind) EBMUD $46,520 $46,520 Other Agencies $24,220 $24,220 Contractual Water Marketing Consultant 1 $120,000 $275,000 $395,000 Pilot Water Transfer 2 $120,000 $70,000 $190,000 Environmental Consultant/Permitting $45,000 $45,000 Other Reclamation Environmental & Cultural Compliance $10,000 $10,000 Total Direct Costs $899,975 Indirect Costs $95,025 $95,025 TOTAL ESTIMATED PROJECT COSTS $595,000 $400,000 $995,000 Notes 1 BARR Partners's contribution for the Water Marketing Consultant includes the unused funds from the completion of the BARR Plan, approximately $120,000 at the time of execution of this MOA Amendment. 2 Actual costs will depend on which pilot(s) are selected. Costs for pilot water transfer(s) shall be the responsibility of the agency/agencies benefitting from the pilot water transfer(s). { ;1} 13

25 MEETING: STAFF REPORT SUBJECT: General Manager's Report for December 2018 ITEM NO. 3 MEETING DATE: January 15, 2019 Board of Directors SUBMITTED BY: RECOMMENDED ACTION: Ben Horenstein, General Manager Accept Report EXECUTIVE SUMMARY: SUMMARY: A. Water Production: AF Mg/L MPN MPY MG NTU = Acre Feet = milligrams per liter = most probable number = mils per year = million gallons = nephelometric turbidity units Item FY 2018/19 FY 2017/18 (million gallons) (acre-feet) (million gallons) (acre-feet) Potable Total production this FY Monthly production, December Daily average, December Recycled Total production this FY Monthly production, December Daily average, December Raw Water Total production this FY Monthly production, December Daily average, December Imported Water Total imported this FY Monthly imported, December Reservoir Storage Total storage, December 30 Storage change during month Stream Releases Total releases this FY Monthly releases, December 4, , , ,964 1, , , ,648 2,039 4, ,337-1,008 2, ,080 1, , ,274-3,093 6,326 1,575

26 General Manager s Report for December 2018 January 15, 2019 Page 2 B. Precipitation: FY 2018/19 (in.) FY 2017/18 (in.) Alpine Bon Tempe Kent Lagunitas * Nicasio Phoenix Soulajule * Average to date = inches C. Water Quality: Laboratory: FY 2018/19 FY 2017/18 Water Quality Complaints: Month of Record 7 9 Fiscal Year to Date Water Quality Information Phone Calls: Month of Record 7 11 Fiscal Year to Date The lab performed 1,238 analyses on lakes, treatment plants and distribution system samples. Mild steel corrosion rates averaged 2.06 ( ) MPY. The AWWA has recommended an operating level of <5 MPY with a goal of <1 MPY. Tank Survey Program: 21 water storage tanks were surveyed during the month % of the planned survey program has been completed for calendar year D. Water Treatment: San Geronimo Bon Tempe Ignacio Treatment Results Average Monthly Average Monthly Average Monthly Goal Goal Goal Turbidity (NTU) 0.08 < < <0.10 Chlorine residual (mg/l) * * * Color (units) 0.60 < < <15 ph (units) * * 8.1 >8.1** * Set monthly by Water Quality Lab ** ph to Ignacio is controlled by SCWA Recycled Water

27 General Manager s Report for December 2018 January 15, 2019 Page 3 The Las Gallinas Recycled Water Plant has been shut-down for the winter. E. Capital Improvement 1. Smith Saddle Pump Station Summary: This project involves the installation of a new pump station next to the District s Smith Saddle Tanks in the Town of Fairfax. Project Budget: $1,247,000 Monthly Activities: Addressing final electrical punch list items prior to functional test. 2. San Francisco Blvd Pipeline Replacement Project Summary: This project involves the installation of 3,480 feet of pipe to replace 67 year old leak prone pipe in the Town of San Anselmo and unincorporated Marin County. Project Budget: $1,155,490 Monthly Activities: Services transferred and final connections completed this month. 3. San Anselmo Pipeline Replacement Project Summary: This project involves the installation of 5,280 feet of pipe to replace 90-year old pipe in coordination with RVSD and the Town s street paving program. Project Budget: $2,122,180 Monthly Activities: Project completed. 4. Southern Marin Line Slide Repair at SM-3 Summary: This project involves the installation of a soil nail wall near our water transmission line on the Southern Marin Line Fire Rd. Project Budget: $157,850 Monthly Activities: Project completed. 5. Phoenix Dam Rd Slide Repair at Spillway Summary: This project involves the installation of a soldier pile retaining wall on Phoenix Dam Rd to provide access to our facilities. Project Budget: $110,530 Monthly Activities: Contractor addressing final punchlist items. 6. Baywood Phase 1 Summary: This project involves the installation of 4,080 feet of pipe to replace fire flow deficient pipe in the Town of Ross. Project Budget: $815,935 Monthly Activities: Contractor addressing final punch list items.

28 7. Rice Drive Pipeline Replacement Project General Manager s Report for December 2018 January 15, 2019 Page 4 Summary: This project involves the installation of 710 feet of pipe in coordination with the SMART train extension project in the City of San Rafael. Project Budget: $344,189 Monthly Activities: Project awarded to Maggiora & Ghilotti, construction to start in January. 8. Sun Valley Pipeline Replacement Project Summary: This project involves the installation of 4,170 feet of pipe to replace 102 year old leak prone pipe. Project Budget: $1,472,955 Monthly Activities: Project completed. 9. Tennessee Valley Tank Rehabilitation Project Summary: This project involves the recoating of a 1M gallon storage tank located in Tamalpais Valley. Project Budget: $1,472,955 Monthly Activities: Contracts being executed.

29 General Manager s Report for December 2018 January 15, 2019 Page 5 F. Other: Pipeline Installation FY2018/19 FY2017/18 Pipe installed during December (feet) 243 3,190 Total pipe installed this fiscal year (feet) 16,817 17,919 Total miles of pipeline within the District 908* 908* * Reflects adjustment for abandoned pipelines Pipe Locates FY2018/19 FY2017/18 Month of December (feet) 42,087 36,898 Total this fiscal year (feet) 373, ,590 Main Line Leaks Repaired: FY2018/19 FY2017/18 Month of December Total this fiscal year Services: FY2018/19 FY2017/18 Service upgrades during December Total service upgrades this FY Service connections installed during December 2 3 Total service connections installed this FY Total active services as of January 1, ,582 60,429 G. Demand Management: WATER-EFFICIENCY PROGRAMS Dec-18 FY 18/19 TOTAL FY 17/18 TOTAL FY 16/17 TOTAL Conservation Assistance Program (CAP) Consultations Residential properties resi 1-2 (single-family) Residential properties resi 3-5 (multi-family units) Non-residential properties resi 6-7 (commercial) Dedicated irrigation accounts resi 8-10 (large landscape) Marin Master Gardeners' Marin-Friendly Garden Walks Residential garden walks CYES Water/Energy Surveys (seasonal) Residential surveys Tier 4 Exemption Program Applications 0 Inspections that resulted in a pass Public Outreach and Education, Customer Service Public outreach events (number of people attending) 0 10,450 11,825 15,604 Public education events (number of participants) 0-15, Phone calls admin staff 82 1,040 2,733 3,004

30 General Manager s Report for December 2018 January 15, 2019 Page 6 Dec-18 FY 18/19 TOTAL FY 17/18 TOTAL FY 16/17 TOTAL School Education School assemblies Number of activities Number of students reached ,429 6,281 6,102 Field trips Number of activities Number of students reached Classroom presentations Number of activities Number of students reached Other (e.g. booth events, school gardens) Number of activities Number of students reached 0-1,252 - Incentives Number of HETs approved Number of HECWs approved x $50 - Rebate Incentive Program (start date Oct. 25, 2014) Number of Organic Mulch approved Number of Rain Barrels approved Number of Pool Covers approved Number of Hot Water Recirculating Systems approved Number of Laundry-to-Landscape systems approved Other Laundry to Landscape Water Service Applications (per Engineering dept.) Advanced Metering Infrastructure (AMI) (start date March 2018) AMI leak letters sent to customers (>200 GPD) ORDINANCES Water Waste Prevention Ordinance No. of properties reporting activity Ord. 421 Landscape Plan Review Plans submitted Plans exempt Plans completed Plans in workflow (pass & fail)

31 General Manager s Report for December 2018 January 15, 2019 Page 7 B. Watershed Protection Watershed Impacted by Butte County s Camp Fire For nearly two weeks the Watershed was impacted by the smoke from the Camp Fire in Butte County. The unhealthy conditions dramatically reduced visitation to the Watershed and served as a reminder of the fire danger in Marin and on the Watershed. During this period the rangers managed multiple Red Flag Warnings and related land use restrictions. One ranger was also deployed to the Camp Fire as part of the North Bay Incident Management Team. PG&E Power Lines start Wildland Fire on the Watershed near Peters Dam. At the end of November rangers responded to a small wildland fire started by a downed PG&E powerline near Peters Dam. Luckily this occurred after a couple of days of rainfall and was kept small by the wet conditions. If the powerline had come down earlier in the month it could have been a very different fire with large growth potential. Rangers investigate additional Vandalism Cases During November the rangers investigated two additional felony graffiti vandalism cases at that occurred at Alpine Dam and the historic structures located there. Rangers have identified one suspect and are attempting to identify others. I. Personnel Incidents Total: Public Contacts (warning for violation) 58 Citations Issued 44 Visitor Assists 11 Vandalism 9 Assist Watershed Maintenance 3 Red Flag Warning Land Closures 3 Assist Outside Law Enforcement Agency 3 Court Appearance (defendants found guilty) 3 Miscellaneous Assist Outside Agency 3 Search and Rescue 3 Citizen Complaint: Illegal Bike Use 2 Suspicious Circumstances 2 Calls for Service-Law Enforcement 2 Miscellaneous Call for Service 1 Medical Aids 1 Illegal Trail Work 1 Citizen Complaint: bikes 1 Citizen Complaint: Smoking 1 Alarm Sounding 1 Misc. Ranger Callout 1 Reckless Driving 1 Out of County Fire Response 1 Wildland Fire Response 1 Fire Service off Watershed 1 Fire Service on Watershed Citations Total: 58 2 Dog off Leash 48 Nonpayment of Parking Fees 4 After Sunset 4 No Parking FTE s Employee authorization as of: 07/01/16 07/01/17 07/01/18 Regular full-time positions

32 General Manager s Report for December 2018 January 15, 2019 Page 8 J. Investment During the month of December 2018, all activity was to/from LAIF and Fidelity MMF. Marin Municipal Water District Investment Report as of December 31, 2018 Par Date Current Market Purchase Investments Type Value Coupon Purchased Maturity Value Price Fidelity Money Market Fund 7 8,023, % 8,023, ,023, Local Agency Investment Fund 4 41,153, % 41,153, ,153, Total District Investments $ 49,177, $ 49,177, $ 49,177, Weighted Average Interest Rate 2.194% * callable security Dated January 1, I certify that all investments are Portfolio: Amount Percent made in conformance with the District's approved investment Treasury Bills (1) $ % policy and that the District has sufficient liquidity to Agency Discount Notes (2) % meet all budgeted and planned obligations during Agency Notes (3) % the next six-month period. LAIF (4) 41,153, % Corp Med Term Notes (5) 0.00% Respectfully submitted: Bankers Acceptances (6) % Money Market (7) 8,023, % Mikyung Pustelnik, Finance Manager Total Investment $ 49,177, %

33 ITEM NO. 4 MEETING DATE: January 15, 2019 MEETING: Board of Directors STAFF REPORT SUBJECT: SUBMITTED BY: RECOMMENDED ACTION: Water Production and Storage Report Michael Ban, P.E., Manager Environmental and Engineering Services Division Information EXECUTIVE SUMMARY: Daily potable water production for January 2 January 8 has averaged mgd. Information on the district s water production is illustrated in the attached graphs. District reservoir storage as of January 9, 2019 is shown in the table below. Reservoir Total Capacity (AF) Water Level From Spillway (feet down) Storage (AF) Percent of Total Capacity Alpine 8, , % Bon Tempe 4, , % Kent 32, , % Lagunitas % Nicasio 22, , % Phoenix % Soulajule 10, , % Total 79,566 N/A 62, % Historical Average Storage This Date 61,734 N/A Historical Percent of Total Storage This Date 77.59% N/A Percent of Normal Storage This Date % N/A For habitat benefit, the district is currently (as of 1/8/2019) releasing mgd from Kent Reservoir into Lagunitas Creek and 4.02 mgd from Soulajule Reservoir into Walker Creek, for total release of mgd. Billed water for the month of December 2018 was 944,610 CCFs and was 13.27% higher than the same month last year and cumulatively was 1.62% higher than last year. Water revenue, based on the billed figures for December 2018 was $4,952,529 and was 11.76% lower than the same month last year, while cumulative revenue through December 2018 at $34,153,196 was 0.54% lower than last year. ATTACHMENTS: Monthly Water Production (table) Monthly Potable Water Production (graph) Running 12-month Potable Water Production (graph) Total Reservoir Storage (graph) Cumulative Precipitation (graph) Cumulative Revenue Cumulative Billed Water Consumption Comparison Water Sales-Budget vs Actual

34 Marin Municipal Water District Monthly Water Production (acre-feet) Water Production and Storage Report January 15, 2019 Page 2 * Total Potable Water Production % Change (FY19 vs FY18) Month FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 July 2,977 2,690 2,287 2,636 2,830 2,802-1% August 2,960 2,590 2,369 2,630 2,778 2,792 1% September 2,742 2,298 2,239 2,449 2,637 2,561-3% October 2,599 2,118 2,148 1,963 2,499 2,281-9% November 2,090 1,641 1,628 1,455 1,681 2,019 20% December 1,888 1,408 1,429 1,400 1,659 1,499-10% Total YTD 15,255 12,745 12,100 12,535 14,084 13,953-1% Imported Water Production % Change (FY19 vs FY18) Month FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 July % August % September % October % November % December % Total YTD 3,324 4,047 2,182 2,138 2,313 2,230-4% Reservoir Water Production % Change (FY19 vs FY18) Month FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 July 2,460 1,980 1,922 2,246 2,466 2,428-2% August 2,458 2,139 2,014 2,253 2,246 2,411 7% September 2,244 1,431 1,861 2,089 2,093 2,194 5% October 2,079 1,499 1,769 1,603 2,043 1,910-6% November 1, ,299 1,114 1,456 1,651 13% December 1, ,053 1,093 1,466 1,130-23% Total YTD 11,931 8,698 9,918 10,397 11,771 11,723 0% Recycled Water Production % Change (FY19 vs FY18) Month FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 July % August % September % October % November December Total YTD % During FY 2016, from June 2015 through May 2016, the District operated under the State s May 2015 Emergency Conservation Regulation. During this time, the District reduced water use 21% relative to the same months in 2013, thus exceeding the State s 20% conservation standard for the District.

35 3,000 Monthly Potable Water Production Water Production and Storage Report January 15, 2019 Page 3 2,500 Production (acre-feet) 2,000 1,500 1, January February March April May June July August September October November December /9/2019

36 Water Production and Storage Report January 15, 2019 Page 4 40,000 Running 12-month Potable Water Production (AF) 35,000 30,000 Production (acre-feet/year) 25,000 20,000 15,000 10,000 5,000 0 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 1/9/2019

37 90,000 Total Reservoir Storage Water Production and Storage Report January 15, 2019 Page 5 80,000 70,000 60,000 Storage (acre-feet) 50,000 40,000 30,000 20,000 10,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Average /9/2019

38 Cumulative Precipitation Lake Lagunitas Rain Gauge Water Production and Storage Report January 15, 2019 Page Rainfall (in) Average Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Average Drought /9/2019

39 Water Production and Storage Report January 15, 2019 Page 7 CUMULATIVE WATER REVENUE CUMULATIVE DOLLARS (IN MILLIONS) JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN MONTHS

40 Water Production and Storage Report January 15, 2019 Page CUMULATIVE BILLED WATER BILLED WATER (IN THOUSAND OF CCF) JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN MONTHS

41 During the month of December 2018 consumption was up (higher) 110,814 CCFs from December Water Production and Storage Report January 15, 2019 Page 9

42 Water Production and Storage Report January 15, 2019 Page 10

43 9 ITEM NO. 5 MEETING DATE: January 15, 2019 MEETING: STAFF REPORT Board of Directors SUBJECT: SUBMITTED BY: RECOMMENDED ACTION: Board committees and assignments Ben Horenstein, General Manager Appoint Board members to Board committees and assignments EXECUTIVE SUMMARY Each year, following the election, the new President makes appointments to standing and ad hoc committees of the Board, based on input from the Directors as to their preferences. All committees are committees of the whole Board, meaning any Board member who attends a committee meeting is considered a member of the committee. Consequently, the practice has been to appoint two Directors to each committee, one as a committee chair and one as vicechair. FISCAL IMPACT: YES NO X FISCAL YEAR: EXPENDITURES FUNDING SOURCES Budgeted Amount $ Operating Fund $ Budget Augmentation Requested $ Capital Fund $ $ Other $ $ Operating Reserves $ TOTAL EXPENDITURES $ TOTAL SOURCES $ FISCAL IMPACT NARRATIVE: N/A BACKGROUND: N/A STRATEGIC PLAN ALIGNMENT: The requested action aligns with the district s Strategic Plan Goal 3: Communications - We will partner with our community, customers, and staff to understand & reflect their interests and clearly articulate the programs & policies of Marin Municipal Water District; Strategy 1 - Support the Board of Directors to facilitate informed policy / decisionmaking; Objective 1 Support Board and committee meetings

44 Organization of Board of Directors for 2019 January 15, 2019 Page 2 REVIEWED BY: Finance Manager [ ] NA [ X ] General Counsel [ ] NA [ X ] General Manager [ X ] NA [ ] ATTACHMENTS: Committee Assignments 2. Description of Board Committees

45 BOARD COMMITTEES AND OTHER ASSIGNMENTS FOR 2018 STANDING BOARD COMMITTEES DISTRICT OPERATIONS Larry Russell, Chair Armando Quintero, Vice-Chair WATERSHED Larry Bragman, Chair Armando Quintero, Vice-Chair FINANCE Cynthia Koehler, Chair Jack Gibson, Vice-Chair COMMUNICATIONS Cynthia Koehler, Chair Jack Gibson, Vice Chair STAFF LIAISON Mike Ban Crystal Yezman Charlie Duggan Lon Peterson AD HOC BOARD COMMITTEES Conservation Action Cynthia Koehler, Member Larry Russell, Member Compensation Larry Russell, Chair Jack Gibson, Vice Chair Russian River Jack Gibson Larry Russell (Alternate) Drought Resiliency Jack Gibson, Chair Larry Russell, Vice Chair Lon Peterson Ben Horenstein Ben Horenstein Ben Horenstein OTHER ASSIGNMENTS Tamalpais Lands Collaborative Executive Committee Jack Gibson Armando Quintero Ben Horenstein Technical Advisory Committee - Lagunitas Creek Larry Bragman Cynthia Koehler, Alternate Gregory Andrew

46 OTHER ASSIGNMENTS (con t) North Bay Watershed Association Jack Gibson Larry Russell, Alternate Tomales Bay Watershed Council Armando Quintero Sonoma County Water Agency, Water Advisory Committee (WAC) Jack Gibson Larry Russell, Alternate North Bay Water Reuse Authority Jack Gibson Larry Russell Las Gallinas Recycled Water Ad Hoc Jack Gibson Larry Russell ACWA Federal Affairs Committee Cynthia Koehler STAFF LIAISON Ben Horenstein Ben Horenstein Ben Horenstein Ben Horenstein Ben Horenstein Ben Horenstein M:\BOARD\REPORTS\2019\ \ITEM COMMITTEE ASSIGNMENTS CD EDIT.DOC

47 DESCRIPTION OF BOARD COMMITTEES AND OTHER ASSIGNMENTS STANDING BOARD COMMITTEES: District Operations (DOC): The DOC reviews proposed contracts for capital projects and facilities maintenance, consulting agreements, pipeline extension agreements, variance requests, leasing proposals, disposal of surplus real estate, and any other matters relating to facilities and operations prior to the Regular board meeting. It is an opportunity to review an item in greater detail for those board members who may wish to attend. The items are forwarded on to the full board at a regular meeting with a recommendation from the Committee. This Committee generally meets on the third Friday of each month at 9:30 am. Watershed: The purpose of the Watershed Committee is to discuss matters concerning the District's watershed and reservoirs such as protection of the fishery, vegetation management, recreational uses, and sources of revenue. This Committee meets once a quarter on the third Thursday of the month at 1:30 pm (March, June, September & December). Finance: The purpose of the Finance Committee is to discuss matters related to the District's finances such as rates, debt and budget. This Committee generally meets monthly on the fourth Thursday of the month at 9:30 am. Communications: The purpose of the Communications Committee is to discuss all matters related to the District's communications planning and public outreach. This Committee once a quarter on the third Wednesday of the month at 9:30 am (February, May, August and November). AD HOC BOARD COMMITTEES: Conservation Action: The focus of the committee is to serve as a networking forum for local resource conservation programs and assist in implementation of community conservation programs. Members of the CAC will include representatives from all agencies, organizations, and businesses interested in promoting natural resource conservation actions in Marin. Compensation: The purpose of the Compensation Committee is to discuss all matters related to the District's employee compensation. The Committee meets as needed. Russian River: This ad hoc committee meets as needed to review issues associated with water supply and water resources management in Sonoma County. Drought Resiliency Task Force: The purpose of the Drought Resiliency Task Force is to discuss all matters related to drought resiliency. The Committee meets as needed. M:\BOARD\REPORTS\2019\ \ITEM 05.2 DESCRIPTION OF BOARD AND OTHER COMMITTEES CD EDIT.DOC

48 OTHER ASSIGNMENTS: Tamalpais Lands Collaborative Executive Committee: The purpose of the Tamalpais Lands Collaborative (TLC) Executive Committee is to review projects and programs supported by the TLC and to review and direct the activities of the Working Group which is composed of staff from each of the agency partners. The Committee meets 2 to 4 times per year as needed. Technical Advisory Committee - Lagunitas Creek Sediment and Riparian Management Plan: Representatives of approximately 20 agencies and environmental/community organizations meet to collaborate on water resources issues in the Lagunitas Creek Watershed. The Committee is chaired by a member of the Committee and meets two to four times a year at 9 am on Fridays. North Bay Watershed Association (NBWA): MMWD joined the NBWA as a Charter member when it was created in The association of water, wastewater and storm water agencies works together to meet regulatory requirements of the Clean Water Act and Safe Drinking Water Act, conduct public education programs, and conduct water resources improvement projects. The Association meets monthly on the first Friday at 9:30 am. Tomales Bay Watershed Council (TBWC): MMWD was asked by the TBWC to appoint a representative to their group to participate in the development and implementation of a watershed plan. The role of Lagunitas Creek in this watershed area is significant and therefore the request for representation. The Council generally meets bi-monthly in Point Reyes. Sonoma County Water Agency Water Advisory Committee (WAC): The WAC is composed of the primary and secondary contractors to the Sonoma County Water Agency. The purpose of the WAC is to discuss water supply, environmental and contract issues relevant to water deliveries to the contractors from the Agency. The WAC also negotiates any changes to contracts between the Agency and the contractors. The WAC meets on the first Monday of every month at 9:00 am. North Bay Water Reuse Authority (NBWRA): The purpose of this committee, which was originally established in 2005, is to seek and obtain federal and state funds for recycled water projects. Original members include the Las Gallinas Valley Sanitary District, Novato Sanitary District, North Marin Water District, Sonoma County Water Agency, Napa Sanitation District and County of Napa. In 2013 NBWRA amended its MOU to include new members. MMWD and the City of Petaluma joined the NBWRA in The NBWRA Board generally meets the third Monday of every other month. Meetings start at 9:30 and are held at the Novato Sanitary District. M:\BOARD\REPORTS\2019\ \ITEM 05.2 DESCRIPTION OF BOARD AND OTHER COMMITTEES CD EDIT.DOC

49 ITEM NO. 6 MEETING DATE: January 15, 2019 MEETING: Board of Directors SUBJECT: SUBMITTED BY: STAFF REPORT Divdat contract assignment Charles Duggan, Administrative Services Division Manager/Treasurer RECOMMENDED ACTION: Authorize the General Manager to sign the Request for Consent to Assignment of Agreement with Diversified Data Processing & Consulting, Inc. d/b/a DivDat. EXECUTIVE SUMMARY: Divdat currently provides the printing and mailing of all the bi-monthly customer invoices and past due notifications as well as the hosting of the online electronic bill presentment, payment services and online document archiving. As of June 26, 2018, Diversified Data Processing & Consulting, Inc. d/b/a DivDat, entered into an Asset Purchase Agreement with Diamond Marketing Solutions Group, Inc. a subsidiary of Output Services Group, Inc. (also known as OSG Billing Services, OSG ). DivDat has requested our consent to assign our current agreement to Diamond Marketing Solutions Group, Inc. FISCAL IMPACT: YES NO X FISCAL YEAR: 2019 EXPENDITURES Budgeted Amount (Actual) Budget Augmentation Requested FUNDING SOURCES $217,200 Operating Fund $240,000 $ Capital Fund $ $ Other $ $ Operating Reserves $ TOTAL EXPENDITURES $217,200 TOTAL SOURCES $240,000 FISCAL IMPACT NARRATIVE: 2018 Actuals: $130,000 (postage) $50,000 (printing) $33,000 (archiving) $4, (web hosting)

50 Divdat contract assignment January 15, 2019 Page 2 BACKGROUND: Divdat currently provides the printing and mailing of all the bi-monthly customer invoices and past due notifications as well as the hosting of the online electronic bill presentment, payment services and online document archiving. On August 15, 2007, the Board approved the Contract for Printing and Mailing of Utilities Bills with Divdat. An agreement was entered into on August 22, 2007 and subsequently, there have been two contract amendments to include custom envelopes on October 11, 2007; and Electronic Bill Presentment & Payment Services on April 17, As of June 26, 2018, Diversified Data Processing & Consulting, Inc. d/b/a DivDat, entered into an Asset Purchase Agreement with Diamond Marketing Solutions Group, Inc. a subsidiary of Output Services Group, Inc. (also known as OSG Billing Services, OSG ), which has been in business for over 25 years and is one of the largest providers of integrated communication and billing solutions in the country. OSG and Diamond together offer comprehensive and flexible solutions including electronic billing and invoice/statement services, document printing and mailing, and an expansive suite of complementary digital marketing solutions in a variety of industries, including the health care, utility, municipality, financial services, real estate and heating oil/propane markets. Staff has reviewed the vendor s qualifications and insurance information and has found Diamond Marketing Solutions Group, Inc. meets the District s requirements. The terms of the Divdat contract will remain under Diamond Marketing Solutions Group, Inc. for a period of 6-9 months until a joint transition plan can be agreed upon at which time operations will move to a west coast OSG facility. STRATEGIC PLAN ALIGNMENT: The requested action aligns with the district s Strategic Plan Goal 3 (Effective Communications), Strategy 3 (Improve the customer experience), and Objective 1 (Streamline and improve online billing processes). REVIEWED BY: A.S.D Manager/Treasurer X NA General Counsel X NA General Manager X NA ATTACHMENTS: 1. Contract Assignment

51 CONSENT TO ASSIGNMENT THIS CONSENT TO ASSIGNMENT (this Consent ), is made and given as of December 12, 2018 (the Effective Date ), by the MARIN MUNCIPAL WATER DISTRICT ( MMWD ), to DIVERSIFIED DATA & COMMUNICATIONS, INC., D/B/A DIVDAT, a Michigan corporation (the Assignor ), and DIAMOND MARKETING SOLUTIONS GROUP, INC., a Delaware corporation ( the Assignee ) and subsidiary of OUTPUT SERVICES GROUP, INC. For good and valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows: Section 1. Recitals: This Consent is made with regard to the following facts: 1.1 MMWD and DIVERSIFIED DATA & COMMUNICATIONS, INC., D/B/A DIVDAT entered into that certain Agreement for Professional Services dated August 22, 2007 and amended as of April 17, 2008 (Miscellaneous Agreement No.4761) (collectively referred to herein as the Services Agreement ), attached hereto and incorporated by reference as Attachment A, for the purpose of providing information technology consulting services in the nature of processing, printing and mailing of billings, including electronic payments of the MMWD. 1.2 Recently MMWD received a request from Assignor seeking MMWD s consent to assign the Services Agreement obligations to Assignee due to Assignor s sell-off of certain business assets to Assignee. 1.3 Pursuant to the terms of the Services Agreement; the Assignor may assign the Services Agreement upon receiving written consent of the MMWD. 1.4 MMWD Finance Staff has determined that Assignee has the necessary skills, expertise, and financial fitness to perform the Services Agreement according to the existing terms and conditions set forth in said Services Agreement. 1.5 The Assignee desires to assume all of the obligations of the Assignor under the Services Agreement. Section 2. Consent of MMWD: On the Effective Date, MMWD hereby consents to the assignment of the Services Agreement to Assignee, and the assumption by Assignee of any and all rights, liabilities and obligations of Assignor under the Services Agreement. MMWD acknowledges and agrees that Assignor is not in default of any of its obligations under or in breach of the Services Agreement as of immediately prior to the Effective Date. MARIN MUNICIPAL WATER DISTRICT Bennett Horenstein General Manager

52 AGENDA ITEM STAFF REPORT SUBJECT: SUBMITTED BY: RECOMMENDED ACTION: EXECUTIVE SUMMARY: ITEM NO. 7 MEETING DATE: January 15, 2019 MEETING: Board Meeting Nominations for LAFCO (Marin Local Agency Formation Commission) Regular and Alternate Special District Member Ben Horenstein, General Manager Determine whether or not to nominate a regular and alternate special district member to serve on LAFCO and, if nominating, determine the nominee. The seat of a Regular and Alternate Special District Member will become vacant in May; LAFCO is calling for nominations for a mail ballot election to select a member for fill the four-year term through May Nominations are due by February 15, 2019; ballots will be distributed February 20, 2019 and are due April 22, FISCAL IMPACT? YES NO X FISCAL YEAR: Budgeted Amount Budget Augmentation Requested TOTAL EXPENDITURES FISCAL IMPACT NARRATIVE: EXPENDITURES Operating Fund Capital Fund Other Operating Reserves TOTAL SOURCES FUNDING SOURCES STRATEGIC PLAN ALIGNMENT: The requested action aligns with the district s Strategic Plan Goal 3: Communications - We will partner with our community, customers, and staff to understand & reflect their interests and clearly articulate the programs & policies of Marin Municipal Water District; Strategy 1 - Support the Board of Directors to facilitate informed policy / decision-making; Objective 1 Support Board and committee meetings