THE LAW OFFICES OF. GoLDENRING & PROSSER A PROFESSIONAL LAW CORPORATION ATTORNEYS AND COUNSELORS AT LAW
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1 PETER A. GOLDENRING JAMES E PROSSER EDWIN S CLARK THE LAW OFFICES OF GoLDENRING & PROSSER A PROFESSIONAL LAW CORPORATION ATTORNEYS AND COUNSELORS AT LAW 6050 SEAHA WK STREET VENTURA, CALIFORNIA TELEPHONE (805) FACSIMILE (805) Attomeys@GoPro-Law.com IRA GOLDENRING ( ) April 11,2016 Hon. Lynn Maulhardt, Chair Fox Canyon Groundwater Management Agency 800 South Victoria Avenue, L#1610 Ventura, California "APR" ~16 Receive ~ r m:cn.. ynn (: ' Re: State Ready Mix, Inc. Appeal FCGMA Account: State Dear Chair Maulhardt and Hon. Board Members Charlotte Craven (Vice Chair), David Borchard, Steve Bennett and Eugene. F. West: We respectfully augment the Administrative Record for this AppealNariance Application pending with the documents recently obtained as follows: 1. Ventura County Waterworks Districts correspondence of April 5, 2016 to the Board of Supervisors of the County of Ventura. 2. April 5, 2016 letter of opposition of the Ventura County Board of Supervisors to the Metropolitan Water District of Southern California regarding proposed treatment rate design. 3. Summary Minutes of April 5, 2016 for the Ventura County Board of Supervisors. We respectfully submit that the concept and analysis urged by the Ventura County Waterworks Districts is conceptually no different than the unfairness being imposed upon our clients in regard to this pending Appeal. As stated by Mr. Sasek in that correspondence: "Under this proposal, if an agency develops local resources after 2007, it must continue to pay for the fixed cost of the Metropolitan treatment plants indefinitely. Investments in recycled water and desalinization projects will clearly be negatively impacted if Metropolitan approves the assessment of a surcharge on water not purchased." The concept of unfairness around a structure that punishes or disincentivizes historic conservation and capital investment in water conservation and efficiency technologies is exactly what has occurred through the FCGMA imposition of the TEA's on State Ready Mix, Inc. and R & Item 8F-6 Page 1 of 18
2 Name: Hon. Lynn Maulhardt, Chair Re: State Ready Mix, Inc. Date: April 11, 2016 Page: 2 R Recycling, Inc. as set forth in the initial Appeal. Thus, both the factual and legal analysis urged by the Ventura County Waterworks Districts and adopted by the Bo of Supervisors is applicable. PETER A. GOLDE G PAG:nc Enclosures Maulhardt04-l 1-16 Item 8F-6 Page 2 of 18
3 \ 't VENTURA COUNTY WATERWORKS DISTRICTS Representing: Ventura County Waterworks Districts No. 1, 16, 17 & 19 April 5, 2016 Board of Ventura County Waterworks District Nos. 1, 17, 19, and 38 Board of Supervisors County of Ventura 800 South Victoria Avenue Ventura, CA Subject: Letter of Opposition to Metropolitan Water District of Southern California Regarding Proposed Treatment Rate Design; Supervisorial District Nos 2 and 4. Recommendation: COUNTY OF VENTURA PUBLIC WORKS AGENCY JEFF PRATT Agency Director Water & Sanitation Department It is recommended that your Board authorize the Chair to sign the attached letter, on behalf of the County of Ventura and Ventura County Waterworks District Nos. 1, 17, 19 and 38, to Metropolitan Water District of Southern California (Metropolitan) opposing the proposal currently under consideration by the Metropolitan Board of Directors (Metropolitan Board) to adopt a Treatment Rate Design that includes a volumetric and fixed revenue recovery component. Fiscal/Mandates Impact: There is no additional fiscal impact associated with this item at this time. Discussion: Ventura County Waterworks District Nos. 1 (Moorpark), 17 (Bell Canyon), 19 (Semis), and 38 (Lake Sherwood) purchase imported water from Calleguas Municipal Water District (Calleguas); 100% of the imported water purchased is treated by Metropolitan. The current rate at which the treated water is purchased includes a per acre-foot (AF) surcharge to recover costs associated with the treatment of that water (100% Volumetric Revenue Recovery). However, as demand for treated water has decreased over the years, Metropolitan is considering alternative methods to recalculate its surcharge for treated water in an effort to pay off stranded capital. The Metropolitan Board is considering a plan to change the current 100% Volumetric Revenue Recovery methodology to a 62% Volumetric Revenue Recovery, with a 38% Fixed Re.venue Recovery component. The proposed latter component includes a two-part test for determining minimum demand, David J. Sasek Director Eric Keller Operations, Maintenance, and Development Susan Pan Planning, Design, and Construction JozlScholl Customer Service, Billing, and Administration 6767 Spring Road P.O. Box 250 Moorpark, California (805) FAX (805) Item 8F-6 Page 3 of 18
4 Board of Supervisors Board of Ventura County Waterworks District Nos. 1, 17, 19 and 38 April 5, 2016 Page 2 which uses the greater of: (1) Ten-year Running Average (TYRA) of Treated Water Sales or (2) Average of Treated Water Sales. The annual fixed charge that will be imposed on the Waterworks Districts is estimated to be $73/AF. The concern is that the fixed component is based on the greater of: (1) an agency's average demand between 1998 and 2007 or (2) a running average of the most recent ten years. Under this proposal, if an agency develops local resources after 2007, it must continue to pay for the fixed cost of the Metropolitan treatment plants indefinitely. Investments in recycled water and desalinization projects will clearly be negatively impacted if Metropolitan approves the assessment of a surcharge on water not purchased. Treatment costs will ultimately be the financial burden of ratepayers and such an assessment will reduce incentives to conserve and discourage development of more cost-effective water supplies. Further, such an assessment would be unconstitutional. (See Newhall County Water District v. Castaic Lake Water Agency (2016) 243 Cal.App.4th 1430.) The immediate impact on District No. 1 (Moorpark) would be an estimated cost of $146,000 (based on 2015 purchases of 7,717.4 AF compared to the historical [ ] average of 9,715.6 AF). The water savings of 1,998.2 AF would be subject to the $73/AF surcharge. Of greater concern is that District No. 1 has implemented a recycled water program that offsets about 600 AF of imported water each year. In addition, District No. 1 is developing a brackish groundwater desalination plant that will offset about 5,000 AF feet of imported water each year, and customers (including city government and school districts) have removed acres of turf, and made other lasting water conservation measures to reach as much as a 50% reduction in annual water consumption. Under this proposal, while dependency on imported water has reduced, ratepayers would still be required to pay the $73 per acre foot for water which will not need to be purchased due to applaudable conservation efforts. At a cost of approximately $408,800 per year (5,600 AF x $73), this proposal will ultimately adversely impact our ratepayers and make it more difficult to continue conservation efforts. The immediate impact on District No. 17 (Bell Canyon) would be an estimated cost of $30,000 (based on 2015 purchases of 1,031.7 AF compared to the historical [ ] average of 1,448.1 AF). The water savings of AF would be subject to the $73/AF surcharge. The immediate impact on District No. 38 (La~:e Sherwood) would be an estimated cost of $7,000 (based on 2015 purchases of 1,265.7 AF compared to the TYRA of 1,362.1). The water savings of 96.4 AF would be subject to the $73/AF surcharge Spring Road P.O. Box 250 Moorpark, California (805) FAX (805) Item 8F-6 Page 4 of 18
5 Board of Supervisors Board of Ventura County Waterworks District Nos. 1, 17, 19 and 38 April 5, 2016 Page 3 Although the proposal will have little or no immediate negative impact on District No. 19 (Somis) in the short-term (as purchases since 2013 exceed both minimum demand options), as conservation efforts improve over time, there may be some negative financial impact to the District. On April 12, 2016, the Metropolitan Board will be voting on this Treatment Rate Design. Many cities and water districts are opposing this proposal. Sending the attached letter to Metropolitan on behalf of the County of Ventura and Ventura County Waterworks District Nos. 1, 17, 19, and 38, will help show unanimous opposition against the proposed Treatment Rate Design that will, in the long run, adversely and unfairly affect water rates for many Ventura County residents and discourage long-term water conservation efforts. This item has been reviewed by the offices of the County Executive and County Counsel. If there are any questions regarding this item, please contact me at (805) Exhibit 1 - Letter of Opposition Regarding Proposed Treatment Rate Design 6767 Spring Road P.O. Box 250 Moorpark, California (805) FAX (805) Item 8F-6 Page 5 of 18
6 I ' MEMBERS OF THE BOARD LINDA PARKS Chair STEVE BENNETT KATHY I. LONG PETER C. FOY JOHN C. ZARAGOZA OF VENTURA 625 WEST HILLCREST DRIVE, Tl-IOUSAND OAKS, CA April 5, 2016 LINDA PARKS SUPERVISOR, SECOND DlSTRlCT (805) FAX: (805) Mr. Randy A. Record Board of Directors Metropolitan Water District of Southern California P.O. Box Los Angeles, CA Re: Letter of Opposition Regarding Proposed Treatment Rate Design Dear Mr. Record, The Ventura County Board of Supervisors is the Board of Directors for Ventura County Waterworks District Nos. l (Moorpark), 17 (Bell Canyon), 19 (Somis), and 38 (Lake Sherwood). I am writing to express our opposition to the proposal currently under consideration by the Metropolitan Board of Directors (Metropolitan Board) to adopt, as presented by Raftelis, the Treatment Rate Design that includes a volumetric and fixed revenue recovery component. The proposal to modify the current 100% Volumetric Revenue Recovery to a 62% Volumetric Revenue Recovery, with a 38% Fixed Revenue Recovery component, based on historical usage, is not legal or in the best interest of our ratepayers. Additionally, it runs counter to critical water policy efforts that work to incentivize conservation. Although the estimated fixed charge of $73 per acre foot (AF) may slightly reduce costs to our Waterworks Districts initially, the concern is that the fixed component is based on the greater of: (1) an agency's average demand between 1998 and 2007 or (2) a running average of the most recent ten years. Under this proposal, if an agency develops local resources after 2007, it must continue to pay for the fixed cost of the Metropolitan treatment plants indefinitely. Our investments in recycled water and desalinization projects will clearly be negatively impacted if the Metropolitan Board approves the assessment of a surcharge on water not purchased. Treatment costs will ultimately be the financial burden of ratepayers and such an assessment will reduce incentives to conserve and discourage development of more cost~effective water supplies. Further, such an assessment would be unconstitutional. (See Newhall County Wat er District v. Castaic Lake Water Agency (2016) 24 3 Cal.App.4th ) Item 8F-6 Page 6 of 18
7 Apri:lS, 2016 Page 2 Therefore, on behalf of the Waterworks Districts governed by our Board, I urge the Metropolitan Board to reject the proposed Treatment Rate Design, as presented by Raftelis, on the basis that the proposed Treatment Rate Design will, in the long run, adversely and unfairly affect water rates for many Ventura County residents and discourage long~term water conservation efforts. While we understand that Metropolitan must develop a means for paying off stranded capital, we request that member agency general managers and Metropolitan staff work together and develop an alternative plan. If that is not feasible before the time Metropolitan's new rates must be adopted this year, we strongly support the status quo over the current proposal. Sincerely, Linda Parks, Chair Board of Ventura County Waterworks District Nos. 1, 17, 19, and 38 County of Ventura Board of Supervisors Item 8F-6 Page 7 of 18
8 MICHAEL POWERS County Executive Officer and Clerk of the Board of Supervisors BRIAN PALMER Chief Deputy Clerk of the Board (805) LEROY SMITH County Counsel 1. Call to Order. 2. Roll Call. BOARD OF SUPERVISORS REGULAR MEETING - 4/5/2016 SUMMARY MINUTES APRIL 05, 2016 Board of Supervisors Ventura County County Government Center Hall of Administration Board of Supervisors Hearing room 800 South Victoria Avenue Ventura, California OPENING Members of the Board LINDA PARKS, District 2 CHAIR Thousand Oaks, Newbury Park, Westlake Village, Oak Park, Bell Canyon, Hidden Valley, Lake Sherwood, Somis, Las Posas Valley, California State University Channels, Portions of the Oxnard Plain, Santa Rosa Valley, Naval Base Ventura County Point Mugu, California Air National Guard, and South Coast STEVE BENNETT, District 1 San Buenaventura, Montalvo, Saticoy, Ojai Valley, City of Ojai, Upper Ojai Valley, Riverpark, Northwest Oxnard, North Coast and West Lockwood Valley KATHY I. LONG, District 3 Camarillo, Port Hueneme, Southeast Oxnard, East Oxnard Plain, Santa Paula, Fillmore, Piru, East Lockwood Valley, and Eastern Portion of Naval Base Ventura County Port Hueneme PETER C. FOY, District 4 Simi Valley, Moorpark, Santa Susana Knolls, Box Canyon, Chatsworth Peak, Home Acres, Sinaloa Lake, and Tierra Rejada Valley JOHN C. ZARAGOZA, District 5 VICE CHAIR Oxnard, Oxnard Shores, Mandalay Bay, Silver Strand, Hollywood Beach, Hollywood By the Sea, Channel Islands Harbor, El Rio, Nyeland Acres, Del Norte Area, Oxnard College, Oxnard Plain, Strickland and Portion of Naval Base Ventura County Port Hueneme Members Present: Staff Present: Steve Bennett, Kathy I. Long, Peter C. Foy, John C. Zaragoza, and Linda Parks. Michael Powers, County Executive Officer, Leroy Smith, County Counsel, Jeffery S. Burgh, Auditor-Controller, and Brian Palmer, Chief Deputy Clerk of the Board. BOARD OF SUPERVISORS SUMMARY 1 April 5, 2016 Item 8F-6 Page 8 of 18
9 OPENING, CONTINUED 3. Pledge of Allegiance to the Flag of the United States of America. 4. Minutes of the meeting of the County and Special Districts governed by the Board held Tuesday, March 22, Moved by Steve Bennett, seconded by Kathy I. Long 5. Agenda Review. as Modified Moved by Kathy I. Long, seconded by Steve Bennett 6. Moment of Inspiration - Leah Haynes, Master Gardeners of Ventura County. 7. Consent Agenda Items , Public Comments. 9. Board Comments. 10. CEO Comments. BOARD OF SUPERVISORS SUMMARY 2 April 5, 2016 Item 8F-6 Page 9 of 18
10 CONSENT AGENDA AGRICULTURAL COMMISSIONER 11. Approval of, and Authorization for the County Agricultural Commissioner to Sign, a Memorandum of Agreement for Development and Implementation of a Polyphagous Shot Hole Borer Trapping Program with the California Avocado Commission in the Maximum Amount of $62,500, Effective November 1, 2015, Through October 31, 2016; Ratification of the Provision of Services Pursuant to that Agreement; and Authorization for the Auditor-Controller's Office to Process Necessary Accounting Transactions. FIRE PROTECTION DISTRICT 12. Approval of, and Authorization for the Ventura County Fire Protection District to Donate, 50 Self-Contained Breathing Apparatuses to the Oxnard College Fire Technology Program for the Purpose of Training Current and Future Firefighters. HARBOR DEPARTMENT 13. Approval of, and Authorization for the Harbor Department to Offer up to 20 Full Tuition or 40 Half-Tuition Junior Lifeguard Scholarships to Qualified Children., heard as Regular agenda item BOARD OF SUPERVISORS SUMMARY 3 April 5, 2016 Item 8F-6 Page 10 of 18
11 CONSENT AGENDA, CONTINUED HEAL TH CARE AGENCY - Behavioral Health 14. Adoption of a Resolution Designating the Children's Mental Health Crisis Stabilization Unit Located at 2130 N. Ventura Road in Oxnard as a Treatment and Evaluation Facility for Minors, Beginning August HEAL TH CARE AGENCY - Ventura County Medical Center 15. Approval of, and Authorization for the Health Care Agency Director to Sign, an Agreement for Critical Care Services with Critical Care Associates of Ventura County, Inc., in the Amount of $1,503,285, Effective April 1, 2016, for a Period of One Year., heard as Regular agenda item Yes:.Steve Bennett, Kathy I. Long, Peter C. Foy, John C. Zaragoza, and Linda Parks. 16. Approval of, and Authorization for the Health Care Agency Director to Sign, the Third Amendment to the Agreement for Radiology and Imaging Services with Lawrence W. Chespak, M.D., a Professional Corporation, in a Maximum Annual Amount of $1,037,000, Effective July 1, 2016 through June 30, BOARD OF SUPERVISORS SUMMARY 4 April 5, 2016 Item 8F-6 Page 11 of 18
12 CONSENT AGENDA, CONTINUED HEAL TH CARE AGENCY - Ventura County Medical Center, Continued 17. Approval of, and Authorization for the Health Care Agency Director to Sign, the First Amendment to the Agreement for Orthopaedic Services with Mary Ragsdale, M.D., Increasing the Annual Amount from $460,000 to $480,000, Effective September 1, 2016 through June 30, Approval of, and Authorization for the Health Care Agency Director to Sign, the First Amendment to the Contract for Chief Nursing Officer Services with The Greeley Company, Inc., Increasing the Amount from $359,000 to $489,000, Extending the Term Through June 30, Yes: Steve Bennett, Kathy I. Long, Peter C. Foy, John C. Zaragoza, and Linda Parks. PUBLIC WORKS AGENCY - County of Ventura 19. Approval of, and Authorization for the Public Works Agency Director to Sign, the First Amendment to the Lease for Office Space Located at 2643 Saviers Road in the City of Oxnard for the Health Care Agency with Centerpoint Mall, LLC, a Delaware Limited Liability Company, with Rent Starting at $2,201 Per Month, Effective May 1, 2016 Through November 30, 2023; Supervisorial District No. 5. BOARD OF SUPERVISORS SUMMARY 5 April 5, 2016 Item 8F-6 Page 12 of 18
13 CONSENT AGENDA, CONTINUED PUBLIC WORKS AGENCY - County of Ventura, Continued 20. Find that Granting the Proposed Easement to the City of Oxnard on Ventura County Fire Protection District Property Located at 3302 Turnout Park Circle in the City of Oxnard is in the Public Interest and Will Not Substantially Conflict or Interfere with the District's Use of the Property; and Authorization for the Public Works Agency Director to Execute the Easement Deed on Behalf of the Fire Protection District; Supervisorial District No. 5. RESOURCE MANAGEMENT AGENCY - Environmental Health 21. Receive and File the Hazardous Materials Discharge Rep ort for March 12, 2016 through March 25, Proposition 65. Motion: Receive and File SHERIFF'S OFFICE 22. Approval of, and Authorization for the Ventura County Sheriff's Office, Acting Through its Office of Emergency Services, to Enter into a Memorandum of Agreement for the Storage of Emergency Water Distribution Equipment and the Drafting of Up to 6,000 Gallons of Water During an Emergency with United Water Conservation District, for No Monetary Cost, Effective Upon Execution., heard as Regular agenda item Moved by Kathy I. Long, seconded by John C. Zaragoza BOARD OF SUPERVISORS SUMMARY 6 April 5, 2016 Item 8F-6 Page 13 of 18
14 CONSENT AGENDA, CONTINUED SHERIFF'S OFFICE. Continued 23. Approval of, and Authorization for the Purchasing Agent to Sign, an Amended and Restated Core Platform Service Agreement (Agreement) for Mass Notification and Other Emergency Notification Services with Everbridge, Inc., Increasing the Annual Service Fee from $99,695 to $111,612, Effective February 1, 2016 through January 1, 2017; Ratification of the Purchasing Agent's Authorization of Everbridge, Inc. to Perform Services; and Authorization of Subsequent Renewal of this Agreement for a Maximum of Three Additional Years in an Annual Not-to Exceed Amount of $112,695., heard as Regular agenda item Moved by John C. Zaragoza, seconded by Kathy I. Long UNSCHEDULED VACANCY NOTICE 24. Receive and File Unscheduled Vacancy Notices for Ken Sasson from El Rancho Simi Cemetery District, and Margaret Johnson, Paul Matakiewicz, Bernardo Perez, and Nancy Williams from Workforce Development Board.. Motion: Receive and File VENTURA COUNTY LIBRARY 25. Approval of the Reappointment of Marty Robinson and Mike Silacci to the Ventura County Library Foundation, for Terms Ending October 21, BOARD OF SUPERVISORS SUMMARY 7 April 5, 2016 Item 8F-6 Page 14 of 18
15 TIME CERTAIN ITEMS, PRESENTATIONS AND HEARINGS 10:00 A.M. 26. Presentation of a Resolution Honoring Josephine Pano of the County of Ventura Clerk and Recorder's Office for Her 35 Years of County Service to the Public. (Supervisor Zaragoza) Presentation made. 27. Presentation of a Resolution Proclaiming April 10-16, 2016 as National Crime Victims' Rights Week in Ventura County. (Supervisor Parks) Presentation made. 28. Receive and File a Report from Westminster Free Clinic and Presentation of Certificates to the Clinic's Student Volunteers. (Supervisor Parks) Motion: Receive and File Moved by Kathy I. Long, seconded by John C. Zaragoza Vote: Motion carried 4-0 Yes: Kathy I. Long, Peter C. Foy, John C. Zaragoza, and Linda Parks. Absent: Steve Bennett. 10:30 A.M. 29. Presentation of a Resolution Proclaiming April 4-10, 2016 as National Public Health Week in Ventura County; and Receive and File a Report From Ventura County Public Health on the Community Health Status of Ventura County. (Supervisor Parks) Motion: Receive and File Moved by Linda Parks, seconded by Kathy I. Long Vote: Motion carried 3-0 Yes: Kathy I. Long, Peter C. Foy, and Linda Parks. Absent: Steve Bennett, and John C. Zaragoza. BOARD OF SUPERVISORS SUMMARY 8 April 5, 2016 Item 8F-6 Page 15 of 18
16 TIME CERTAIN ITEMS, PRESENTATIONS AND HEARINGS, CONTINUED 10:30 A.M., Continued 30. Presentation of a Resolution Proclaiming the Month of April 2016 as National County Government Month Safe and Secure Counties. (Supervisor Long) Presentation made. 11:00 A.M. 31. Second Public Hearing Regarding the Adoption of an Ordinance Amending the Ventura County Ordinance Code, Division 1, Chapter 3, Article 4, Civil Service System, Concerning Transfers, Including Transfer to the County from a Public Agency Other than the County. (County Executive Office) Moved by Peter C. Foy, seconded by John C. Zaragoza Vote: Motion carried 4-0 Yes: Kathy I. Long, Peter C. Foy, John C. Zaragoza, and Linda Parks. Absent: Steve Bennett. REGULAR AGENDA HUMAN SERVICES AGENCY 32.. Ratification of, Approval of, and Authorization for the Human Services Agency to Implement, a Bridge Program for Resource Family Approvals (Relative and Non Relative Extended Family Members) in the Child Welfare System, Effective March 1,2016. Moved by Steve Bennett, seconded by Kathy I. Long BOARD OF SUPERVISORS SUMMARY 9 April 5, 2016 Item 8F-6 Page 16 of 18
17 REGULAR AGENDA, CONTINUED BOARD OF SUPERVISORS 33. Recommendation of Supervisor Parks and Supervisor Long to Name the Children's Crisis Stabilization Unit, Located at 2130 North Ventura Road in Oxnard, the David Holmboe Center. Moved by Linda Parks, seconded by Kathy I. Long PUBLIC WORKS AGENCY - Waterworks Districts 34. Authorization for the Chair of the Board to Sign the Letter of Opposition to Metropolitan Water District of Southern California Regarding Proposed Treatment Rate Design; Supervisorial District Nos. 2 and 4. Moved by Peter C. Foy, seconded by Kathy I. Long CLOSING BOARD OF SUPERVISORS SUMMARY 10 April 5, 2016 Item 8F-6 Page 17 of 18
18 ... At 11 :31 a.m. the Board hereby adjourns in memory of Linda Hughes, James Perkins, Daniel Hedrick, Jerve Jones, Oliver Hill, James Rutherford, George Otta, Jesus Garcia, William Kurta, Thelma Watson, Richard L. Freie, Shirley Baden, Bernard Moon, Stan Daily, Marcos A. Hurtado, James Smith Eicher, Calvin E. Schell, Harry McClain Mac Shroyer, Reid S. Johnson, Jean E. Glowacki, William Harris, Jan Lipman, Michael Leo Mead, Arnold D. Peterson, Toni Varola, Anthony John von Teuber, Rosemarie Forsyth, Delfino Herrera Salazar, Lino Flores Corona, Frances H. Orud. BRIAN PALMER Chief Deputy Clerk of the Board LINDA PARKS Chair, Board of Supervisors County of Ventura BOARD OF SUPERVISORS SUMMARY 11 April 5, 2016 Item 8F-6 Page 18 of 18
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