Director Bilodeau arrived at 5:35 p.m. at this in point in tonight s meeting.

Transcription

1 MINUTES OF MEETING BOARD OF DIRECTORS, ORANGE COUNTY WATER DISTRICT January 21, 2015, 5:30 p.m. President Green called to order the January 21, 2015 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 (arrived at 5:35 p.m.) Shawn Dewane Jan Flory Cathy Green Dina Nguyen Vincent Sarmiento Stephen Sheldon Harry Sidhu Roger Yoh (arrived 5:45 p.m.) Others: Staff Michael Markus, General Manager Joel Kuperberg, General Counsel Janice Durant, District Secretary Gina Ayala, Dave Bolin, Darla Cirillo, Bruce Dosier, Stephanie Dosier, Randy Fick, Roy Herndon, Bonnie Howard, Bill Hunt, Judy-Rae Karlsen, John Kennedy, Mehul Patel, Frank Simone, Eleanor Torres, Patti Wimmerstedt, Nira Yamachika, Lee Yoo Chip Shook, Rhonda Oesterle - Thermo Fisher Kelly Rowe - Water Resources Consultant Marc Marcantonio - Yorba Linda Water District Don Calkins, Mike Moore - City of Anaheim Jim Dellaonga - City of Garden Grove Lisa Ohlund - East Orange County Water District Merle Mosheri - R4RD Jose Diaz - City of Orange Keith Lyon - Municipal Water District of Orange County Brian Ragland - City of Huntington Beach Jim Atkinson, Paul Shoenberger - Mesa Water District Betsy Eglash - Brady Nabil Sabu - City of Santa Ana 1. Employee of the Year Award to Buyer Frank Simone The Board presented the Employee of the Year Award to Buyer Frank Simone. VISITOR PARTICIPATION Thermo Fisher Scientific Western Regional Manager Chip Shook requested to address the Board on Item No. 16. Item No. 16 was then removed from the Consent Calendar for consideration. Director Bilodeau arrived at 5:35 p.m. at this in point in tonight s meeting.

2 ITEMS REMOVED FROM CONSENT CALENDAR FOR CONSIDERATION 21. Compensation Agreement with Garden Grove for Long Range Property Management Plan General Manager Markus requested that this item be removed from tonight s Agenda and deferred to a later date. The following action was taken deferring consideration of this item. MOTION NO DEFERRING CONSIDERATION OF COMPENSATION AGREEMENT WITH CITY OF GARDEN GROVE FROM LONG RANGE PROPERTY MANAGEMENT PLAN Upon motion by Director Flory, seconded by Director Anthony and carried [8-0], with Director Sheldon abstaining due to a potential conflict of interest, consideration of a Compensation Agreement with the City of Garden Grove for a long range property management plan is hereby deferred to a later date. Ayes: Anthony, Bilodeau, Dewane, Flory, Green, Nguyen, Sarmiento, Sidhu Abstain: Sheldon Absent: Yoh Director Yoh arrived at 5:45 p.m. at this point in tonight s meeting. 16. Purchase Order to Thermo Electron North America LLC for Ion Chromatography Mass Spectrometer (IC-MS) for Advanced Water Quality Assurance Laboratory Thermo Fisher Scientific Western Regional Manager Chip Shook reported that Thermo Electron responded properly to the District s Request for Proposals (RFP) and received the highest overall ranking from OCWD staff. However, he stated one of his competitor s Metrohn contested the bid results due to some confusion with the bidding process on the equipment and OCWD staff was instructed to conduct a formal RFP process. Mr. Shook stated that Thermo Electron competed in the second bidding process and again received the highest ranking by OCWD staff. He stated that his company should have been awarded the bid on the project based on technical merit, and objected to the Board considering a potential third RFP process. Assistant General Manager Mike Wehner concurred that Thermo Electron was the most qualified bidder. Director Sheldon asked if the qualified bidders need to be compatible with Thermo Electron s software. Mr. Wehner responded that was not the case. The Board agreed that putting this out for bid two times was sufficient and the following action was taken. Upon motion by Director Bilodeau, seconded by Director Sarmiento, the following resolution was unanimously adopted [10-0]. RESOLUTION NO AUTHORIZING PURCHASE ORDER TO THERMO ELECTRON NORTH AMERICA LLC FOR ION CHROMATOGRAPHY MASS SPECTROMETER (IC-MS) FOR ADVANCED WATER QUALITY ASSURANCE LABORATORY RESOLVED, that issuance of a Purchase Order is hereby authorized to Thermo Electron North America LLC for Ion Chromatography Mass Spectrometer (IC-MS) for Advanced Water Quality Assurance Laboratory in the amount of $

3 Ayes: Anthony, Bilodeau, Dewane, Green, Flory, Nguyen, Sarmiento, Sheldon, Sidhu, Yoh CONSENT CALENDAR Item No. 21, Compensation Agreement with the City of Garden Grove, was removed from tonight s Agenda (see action under Item No. 21) and deferred, and Item No. 16 was considered separately (see above action). The balance of the Consent Calendar was then approved upon motion by Director Bilodeau, seconded by Director Sarmiento and carried [10-0] as follows. Ayes: Anthony, Bilodeau, Dewane, Green, Flory, Nguyen, Sarmiento, Sheldon, Sidhu, Yoh Abstain: Sheldon (Item No. 21) 2. Approval of Cash Disbursements MOTION NO APPROVING CASH DISBURSEMENTS Payment of bills for the period January 1, 2015 through January 14, 2015 in the total amount of $6,323, is ratified and approved. 3. Approval of Minutes of Board Meeting MOTION NO APPROVING MINUTES OF BOARD MEETINGS The minutes of the Board of Directors meeting held December 10 and December 17, 2014 are approved as presented. CONSENT CALENDAR ITEM RECOMMENDED FOR APPROVAL AT COMMUNICATIONS AND LEGISLATIVE LIAISON MEETING HELD JANUARY 8 4. Groundwater Cleanup Outreach Update MOTION NO AUTHORIZING OCWD PRESIDENT TO TRANSMIT LETTER TO IRWD REGARDING THEIR PROPOSED LEGISLATION The OCWD President is hereby authorized to transmit a letter to the Irvine Ranch Water District President and Board of Directors regarding their proposed legislation on water recycling. 3

4 CONSENT CALENDAR ITEMS RECOMMENDED FOR APPROVAL AT WATER ISSUES COMMITTEE MEETING HELD JANUARY 14 o Agreement to AKM Consulting Engineers for Construction Management Services for Contract No. SAR , Imperial Headgates and Weir Pond Rehabilitation RESOLUTION NO AUTHORIZING AGREEMENT TO AKM CONSULTING ENGINEERS FOR CONTRACT NO. SAR , IMPERIAL HEADGATES AND WEIR POND REHABILITATION PROJECT CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES RESOLVED, that issuance of an Agreement is authorized to AKM Consulting Engineers for an amount not to exceed $269,722 for Contract No. SAR , Imperial Headgates and Weir Pond Rehabilitation Project, construction management and inspection services. 6. RFP For Administration Building HVAC Upgrade Project MOTION NO AUTHORIZING ISSUANCE OF RFP FOR THE ADMINISTRATION BUILDING HVAC UPGRADE PROJECT Issuance of a Request for Proposals for the OC WD Administration Building HVAC Upgrade Project is hereby authorized. o Amendment to Agreement with Department of The Army for Continued Access to Monitoring Well LAM-1, and Ratification of Encroachment Permits for Continued Access to District- Owned Wells on Public Rights-of-Way RESOLUTION NO AMENDMENT TO AGREEMENT WITH THE DEPARTMENT OF THE ARMY FOR CONTINUED ACCESS TO MONITORING WELL LAM-1, AND RATIFICATION OF ENCROACHMENT PERMITS FOR CONTINUED ACCESS TO DISTRICT-OWNED WELLS ON PUBLIC RIGHTS-OF-WA Y WHEREAS, pursuant to Resolution No adopted February 18, 2009, OCWD authorized License No. DACA with the Department of the Army for OCWD monitoring well No. LAM-1 on the Los Alamitos Joint Forces Training Base; and WHEREAS, the Water Issues Committee of this Board has recommended issuance of Amendment No. 1 to such License Agreement with the Department of the Army providing for a five year extension for continued access to OC WD monitoring well LAM-1, for a $3,000 administrative fee; and WHEREAS, the Water Issues Committee has further recommended execution of two renewed encroachment permits with the City of Fountain Valley and the County of Orange Flood Control Division for one-year terms to allow continued access to 34 District-owned groundwater monitoring wells for a cost of $291;

5 NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby resolve as follows: 1/21/15 Section 1: Amendment No. 1 to License Agreement DACA with the Department of the Army is authorized as described herein; and upon approval as to form by District General Counsel, its execution by the District officers is authorized. Section 2: Execution by District staff of two renewed encroachment permits with the City of Fountain Valley and the County of Orange Flood Control Division is hereby ratified as described herein. SAWPA Project Agreement 22 Establishing Water Use Efficiency and Drought Response Project Committee RESOLUTION NO APPROVING SAWPA PROJECT AGREEMENT 22 ESTABLISHING WATER USE EFFICIENCY AND DROUGHT RESPONSE PROJECT COMMITTEE RESOLVED, that Project Agreement 22 with the Santa Ana Watershed Project Authority establishing water use efficiency and drought response project committee is hereby approved; and upon approval as to form by District General Counsel, its execution by the District officers is authorized. 9. Agreement with DDB Engineering for Preparation of GWRS Annual Reports RESOLUTION NO APPROVING AGREEMENT WITH DDB ENGINEERING FOR PREPARATION OF GWRS ANNUAL REPORTS RESOLVED, that issuance of an Agreement is authorized to DDB Engineering Inc. for an amount not to exceed $145,300 to provide consulting services for the preparation of three GWRS Annual Reports covering calendar years Approval of Alamitos Seawater Barrier Operations and Maintenance (O&M) Budget MOTION NO APPROVING ALAMITOS BARRIER O&M BUDGET AND AUTHORIZING PAYMENT TO LOS ANGELES COUNTY DEPARTMENT OF PUBLIC WORKS The Alamitos Barrier total O&M budget in the amount of $2,331,000 is approved, and payment of the District s share not to exceed $785,120 payable to the Los Angeles County Department of Public Works is authorized after receipt and review of invoices.

6 11. Approval of Additional FY Operation and Maintenance (O&M) Expenses for the Alamitos Seawater Barrier MOTION NO APPROVING ADDITIONAL FY OPERATION AND MAINTENANCE (O&M) EXPENSES FOR THE ALAMITOS SEAWATER BARRIER Payment to Los Angeles County Department of Public Works is authorized for an amount not to exceed $181,991 that provides for additional Alamitos Barrier operation and maintenance expenses for FY City of Santa Ana Agreement for Well 32 Basin Equity Assessment Exemption Program RESOLUTION NO APPROVING LIMITED TERM PARTIAL BASIN EQUITY ASSESSMENT EXEMPTION AGREEMENT WITH CITY OF SANTA ANA FOR WELL NO. 32 WHEREAS, pursuant to Motion No , OCWD staff was directed to prepare an Agreement with the City of Santa Ana (City) for a limited term partial Basin Equity Exemption for Well No. 32 which contains high nitrate concentrations for future Board consideration; and WHEREAS, the District staff has advised that the City of Santa Ana has designed a $4.6 million improvement project that would allow the City to put well No. 32 back into service by blending well No. 32 discharges with low nitrate water at the John Garthe Reservoir and then serve the blended water to their retail customers; WHEREAS, staff has presented and recommended approval of a Limited Term Partial Basin Equity Assessment Exemption Agreement with the City for such well No. 32; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby approve the aforementioned Limited Term Partial Basin Equity Agreement with the City of Santa Ana for Well No. 32 Basin Equity Assessment Exemption Program; and, upon approval as to form by District General Counsel, its execution by the District officers is authorized. 13. Reimbursement to City of Buena Park for M WD Conjunctive Use Program Storage Agreement MOTION NO REIMBURSEMENT TO THE CITY OF BUENA PARK FOR THE MWD CONJUNCTIVE USE PROGRAM STORAGE AGREEMENT Payment to the City of Buena Park is authorized in the amount of $83,074 for half of the costs for the investigation and repair of the Linden Well that is part of the Conjunctive Use Program with the Metropolitan Water District of Southern California to allow MWD to store water in the OC WD groundwater basin.

7 14. Agreement with Climatec LLC to Automate Fountain Valley Administration Building Reception Doors 1/21/15 RESOLUTION NO AUTHORIZING AGREEMENT WITH CLIMATEC LLC TO AUTOMATE FOUNTAIN VALLEY ADMINISTRATION BUILDING RECEPTION DOORS RESOVED, that issuance of Agreement is authorized to Climatec LLC for $12,310 for the automation of the Administration Building reception doors; and upon approval as to form by District General Counsel, its execution by the District officers is authorized. 15. Agreement to Hargis + Associates to Provide National Contingency Plan Consulting Services for South Basin Groundwater Protection Project and Amendment to Agreement with Aquilogic RESOLUTION NO APPROVING AGREEMENT TO HARGIS + ASSOCIATES TO PROVIDE NATIONAL CONTINGENCY PLAN CONSULTING SERVICES FOR THE SOUTH BASIN GROUNDWATER PROTECTION PROJECT AND AMENDMENT TO SERVICE AGREEMENT WITH AQUILOGIC RESOLVED, that issuance of Agreement to Hargis + Associates for an amount not to exceed $657,852 to provide National Contingency Plan (NCP) consulting services in the South Basin area; and RESOLVED FURTHER, that issuance of Amendment No. 1 of Agreement No with Aquilogic, Inc. is authorized in the amount of $78,375 for services to update and maintain the database, provide access to the database and records to Hargis + Associates, and coordinate with Hargis + Associates through April Purchase Order to Thermo Electron North America LLC for Ion Chromatography Mass Spectrometer (IC-MS) for Advanced Water Quality Assurance Laboratory This item was considered earlier in tonight s meeting. 17. Purchase Order Commitment with MWDOC for Untreated Full Service Imported Water RESOLUTION NO AUTHORIZING A CONTRACT WITH MWDOC FOR UNTREATED FULL SERVICE IMPORTED WATER BASED UPON THE TERMS OUTLINED IN LETTER DATED JANUARY 6, 2015 Staff is authorized to enter into a contract with the Municipal Water District of Orange County (MWDOC) for untreated full service imported water based upon the terms outlined in the letter dated January 6, 2015 (on filed at the District office).

8 CONSENT CALENDAR ITEMS RECOMMENDED FOR APPROVAL AT ADMINISTRATION AND FINANCE ISSUES COMMITTEE MEETING HELD JANUARY Monthly Cash Control Report MOTION NO APPROVING CASH AND CASH EQUIVALENTS CONTROL REPORT The Cash and Cash Equivalents Control Report dated December 31, 2014 is hereby approved as presented. 19. Wells Fargo Bank Authorized Signers Resolution RESOLUTION NO RATIFYING EXECUTION OF WELLS FARGO BANK FORM: USE OF FACSIMILE AND /OR LOGO SIGNATURES IN RELATION TO DEPOSIT ACCOUNTS WHEREAS, the Orange County Water District (Company) has established or intends to establish one or more deposit accounts (collectively, the "Accounts") with Wells Fargo Bank, National Association, and/or one or more of its affiliate banks (each individually, "Bank ") from which funds may be withdrawn by checks, drafts or other orders for the payment of money (collectively, "Items"), which Bank may honor and pay, including Items payable to cash or to the person or persons who sign or endorse them ; " WHEREAS Company, for its own convenience, desires to utilize the facsimile, computer-generated or logo signature(s) set forth below or affixed hereto (each individually referred to hereinafter as a "Facsimile Signature") in connection with Items drawn on the Accounts; NOW, THEREFORE, BE IT RESOLVED, that Company requests, authorizes, and directs Bank and its affiliate and correspondent banks to cash, pay, or deposit, as requested, all Items drawn on or made payable from the Accounts when bearing, or appearing to bear, any of the Facsimile Signatures; RESOLVED FURTHER, that Company requests, authorizes, and directs Bank and its affiliate and correspondent banks to honor, pay, and charge to the Accounts all Items drawn on or made payable from the Accounts, including those Items made payable to cash or the person or persons who sign them, when bearing, or appearing to bear, any of the Facsimile Signatures, and that Bank is instructed to perform the actions described above regardless of by what means the actual or apparent Facsimile Signature may have been affixed if the signature on the Item in any way resembles any of the Facsimil Signatures; RESOLVED FURTHER, that in consideration of the foregoing, Company agrees to indemnify and hold harmless Bank and its affiliate and correspondent banks (collectively, the "Indemnified Parties") from and against any and all losses, liabilities, damages, claims and expenses (including reasonable attorney s fees) which any of the Indemnified Parties may suffer or incur by performing the actions specified in the above resolutions, including but not limited to the payment of any Items bearing or appearing to bear any of the Facsimile Signatures, even if such Facsimile Signature was affixed by copying or otherwise counterfeiting it, or by the unauthorized use of a device that generates the Facsimile Signature, and Company further agrees that Bank shall have no responsibility or liability fo

9 performing such actions, except to the extent Company suffers loss on account of Bank s gross negligence or willful misconduct; 1/21/15 RESOLVED FURTHER, that these resolutions are in addition to, and not by way of limitation on, other resolutions, if any, of Company s Board of Directors or shareholders in favor of Bank, and that the authority conferred by these resolutions shall be deemed retroactive and any and all acts authorized by these resolutions performed prior to the passage of these resolutions are hereby approved and ratified; and RESOLVED FURTHER, that each of these resolutions shall continue in full force and effect until Bank has received express written notice of its rescission or modification by a resolution duly adopted by Company s Board of Directors and certified by a Secretary or Assistant Secretary of this Company. 20. Purchase Order to Tiger Corporation for John Deere 6140 Tractor with Flail RESOLUTION NO AUTHORIZING PURCHASE ORDER TO TIGER CORPORATION FOR JOHN DEERE 6140 TRACTOR AND AUTHORIZING SURPLUS OF TRACTOR/MOWER RESOLVED, that issuance of Purchase Order is authorized to Tiger Corporation in the amount of $152,265 for the replacement of the John Deere (RT-32) tractor/mower with a John Deere 6140 tractor with a 50" flail. RESOLVED, FURTHER, that the John Deere (RT-32) tractor/mower is no longer necessary for use at the District and is declared surplus to the District needs and its sale or disposal is authorized. 21. Compensation Agreement with Garden Grove for Long Range Property Management Plan This item was removed from tonight s agenda. 22. License and Support Agreement to Oracle JD Edwards for Sy stem Updates RESOLUTION NO APPROVING ORACLE JD EDWARDS SOFTWARE UPDATE LICENSE AND SUPPORT AGREEMENT RESOLVED, that the Oracle JD Edwards Software Update License and Support Agreement is approved in the amount of $351,115 for system updates commencing March 1, 2015 through February 28, Investment Portfolio Holdings Report MOTION NO RECEIVING AND FILING INVESTMENT PORTFOLIO HOLDINGS REPORT The Investment Portfolio Holdings Report dated December 31, 2014 is hereby received and filed.

10 24. Annual Debt Service (ADS) Coverage Policy RESOLUTION NO ADOPTING REVISED DISTRICT RESERVE POLICY RESOLVED, that the OCWD Reserve Policy is hereby adopted as follows: District Reserve Policy A key element of prudent financial planning is to ensure that sufficient funding is available for current operating, capital, and debt service needs. Additionally, fiscal responsibility requires anticipating the likelihood of, and preparing for, unforeseen events. The District will at all times strive to have sufficient funding available to meet its operating, capital, and debt service obligations. To preserve its strong credit ratings of AAA/AAA/Aal, in every fiscal year the District will strive to maintain unrestricted cash and investment balances totaling a minimum of 625 days of budgeted operating expenses comprised of annual budgeted General Fund appropriations and annual budgeted Debt Service and strive to maintain a 3.50x x senior lien annual debt service coverage anda 2. 75x- 3.25x all-in annual debt service coverage in every fiscal year as defined by the District s bond indenture. Operating Reserve Fund - established by the District Act and allocated from the general fund to be used to meet the cashflow needs of the District before the proceeds of taxes or replenishment assessment collections are available to meet emergency expenditures for operations, maintenance and the debt service payments of the District. The level of this general operating reserve as established in the District Act shall not exceed 15% of the total current annual general and water reserve fund operating budget. Toxic Cleanup Reserve Fund - establishedfor toxic spill emergencies and cleanup. The current target level is $ 4 million and is to be replenished annually after the adoption of the annual OCWD budget. Contingency Reserve Fund - established by the District Act to provide for expenditures that have not been anticipated or provided for in the District s annual budget. The money for this fund is to be allocated from the Operating Fund and the Water Reserve Fund at the beginning of eachfiscal year. The level of this fund as established by the District Act is not to exceed$ 3 million. Water Replenishment Fund (to be known as the "Operating Fund") - establishedforfunds collected and received from the levy of the District s replenishment assessment. These monies shall be sufficient to enable the District to carry on any of the projects or pwposes of the District as deemed by the Board of Directors. It can also include the expenditures necessaryfor the maintenance, operation and repairs of works and projects of the district as authorized by the board of directors. The funds can also be usedfor the purchase of supplemental water, and the replenishment of ground water sigoplies within the District. Th.e 10

11 District shall maintain a minimum balance eq ual to fifty percent of the sum of the (i) current annual budgeted General Fund appropriations, plus (ii) current annual budgeted debt service appropriations. Basin Equity Assessment Fund - establishedforfunds receivedfrom the levy of the District s Basin Equity Assessment. These funds are to be used onlyfor the purchase of water for the purpose of groundwater replenishment and/or to reimburse producers assigned pumping limitations per the District A ct. Water Reserve Fund - established by the District Act to accumulate any excess general assessment, or unexpendedfunds, other than funds allocated to the operating reserve or operating contingencies by the Board of Directors. These funds can be used for the purchase of supplemental water for groundwater replenishment, acquiring, constructing or developing any groundwater intrusion prevention projects, pipelines, wells or other works necessary for the purposes of the district. Going forward, under the new Reserve Policy, this fund shall be designated only for purchases of supplemental water in order to have funds set aside and available. This will provide accountability and transparency to the Board and Groundwater Producers onfunds collected and spent on water purchases. The maximum upper limit is set at enough funds to purchase 50% of water needed to have an accumulated basin overdraft of 125, 000 acre-feet. Repair and Replacement Fund - establishedfor replacement or refurbishment of District facilities, to be equal to thirty years of projected Replacement and Refurbishment (R&R) costs as defined in the District s R&R model. Capital Fund - established for proceedsjeom bond issuances or any other debt financing, and are usedfor the District s capital projects and capital improvements. These funds are restricted to specific capital projects which are authorized and approved by the Board of Directors. Debt Reserve Fund - established for various bond issues. Thesefunds are not available for the general needs of the District and must be maintained at specific levels, and are restricted by certain bond covenants. Debt Service Fund ("Bond Fund"per District A ct) - established to meet the annual debt payments of principal and interestfor the Certificates of Participation (COPs). These funds are allocated from property tax revenues and thefiscal replenishment assessment collections. In 1992 and 1993 the Board dedicated the District s ad valorem taxes to the payment of the bond debt. The District funds the annual debt paymentsfbom the property taxes received (first priority) and then fi om replenishment assessments (second priority). Under this policy, this fund shall cease to exist and funds included in this fund shall be incorporated into the Operating Fund. 11

12 The fund balances as of February 28, 2011 are adopted, as are the following funding target levels: Account Restricted Funds & Reserves Capital Project Funds Debt Reserve Funds BEA Funds Designated Reserves & Funds Toxic Cleanup Contingency Water Reserve Funds Operating Reserves Repair & Reserves Operating Funds (Water Replenishment Fund) Operating Cash RA & Annual Debt Payments Policy Funding Target No target Bond Covenants No Target $4 million $3 million Maximum of enough funds to purchase 50% of water needed to have an accumulated overdraft of 125, 000 acre-feet 15% Operating & Water Budget Detailed R&R Model 50% of current annual budgeted General Fund appropriations and 50% of annual budgeted debt service 25. Basin Production Percentage and Replenishment Assessment Estimates for FY MOTION NO DIRECTING STAFF TO PROVIDE FY REPLENISHMENT ASSESSMENT AND BASIN PRODUCTION PERCENTAGE ESTIMATES TO GROUNDWATER PRODUCERS Staff is directed to provide the Fiscal Year Replenishment Assessment and Basin Production Percentage estimates to the Groundwater Producers along with any additional Board comments MATTER FOR CONSIDERATION 26. Internet Video Streaming of OCWD Board Meetings Director of Information Services Bruce Dosier provided various options and costs for video streaming of Board meetings. Director Bilodeau noted that the City of Orange uses its cable franchise fees to fund its video streaming, and has teamed up with the Chapman University students who index the videos. A discussion took place regarding the contractual arrangement with MWDOC regarding the use of the Boardroom and General Counsel Kuperberg noted the need to review the OCWD/MWDOC agreement. Director Bilodeau moved to put a notice on the OCWD website stating that audio recordings are available upon request. Director Flory stated her preference for the Swagit proposal, noting her liking for the on-demand feature and minimal staff input. She then made an alternate motion seconded by Director Green to select Option 1A with Swagit, for live streaming with one fixed camera at a capital cost of $13,500, and an annual yearly cost $11,940, and a total first year cost $25,440. Her motion failed by a 2-8 vote as follows: (Ayes: Flory. Green. Noes: Anthony, 12

13 Bilodeau, Dewane, Nguyen, Sarmiento, Sheldon, Sidhu, Yoh.) Director Bilodeau noted the District has no revenue stream to support moving forward with video streaming, and Directors Bilodeau, Dewane, Sheldon and Yoh expressed concern over the lack of demand for this service. The Board then took action on Director Bilodeau s motion as follows: MOTION NO DIRECTING STAFF TO PLACE A NOTICE ON THE OCWD WEBSITE STATING THAT AUDIO RECORDINGS ARE AVAILABLE UPON REQUEST Upon motion by Director Bilodeau, seconded by Director Dewane and carried [10-0], the District staff is hereby directed to place a Notice on the OCWD website stating that audio recordings of Board and Committee meetings are available upon request from the District Secretary. Ayes: Anthony, Bilodeau, Dewane, Flory, Green, Nguyen, Sarmiento, Sheldon, Sidhu, Yoh INFORMATIONAL ITEMS 27. Water Resources Report There was no discussion of this item as the next presentation would cover this information. 28. Mid-Year Groundwater Basin Conditions Update District Hydrogeolgist Roy Herndon provided a mid-year groundwater basin conditions update. He stated that precipitation was about 1.5 inches above average as of December 31, and that for the month of January thus far, rainfall has totaled 0.87 inch at field headquarters, as compared to the January average of 3 inches. Mr. Herndon stated The National Weather Service currently predicts below-median precipitation through January but above-median precipitation for February through May for the Southwest. He further reported that while temperatures in Santa Ana so far this water year have been several degrees above average, total water demand within OCWD was about 4% (9,300 acre-feet) less than last year through December, potentially indicating increased water conservation efforts by the community. Assuming average precipitation for the rest of the water year and other factors, he stated staff estimates the basin accumulated overdraft may decrease by approximately 24,000 acre-feet to end up at approximately 366,000 acre-feet by June 30, noting this amount includes 16,000 acre-feet of stored MWD conjunctive use program water. Mr. Herndon stated staff expects the water conservation pool behind Prado Dam to be drained by January 16, after which staff may consider resuming purchases of imported MWD water for basin replenishment, provided that no storms are in the weather forecast. Mr. Herndon advised that staff would continue to closely monitor basin conditions over the next few months. 29. Santa Ana Watershed Project Authority Activities Director Anthony noted that he has finished his two-year term and SA WPA Chair and noted that Don Galleano had been elected the new Chair. 30. Groundwater Producer Meeting Minutes - January 14, 2014 There was no discussion of this item. 13

14 31. Orange County Sanitation District Service Area 7 Executive Director John Kennedy advised that OCSD currently owns and maintains the retail sewer lines in Orange County Sanitation District (OCSD) Service Area 7 which is in and around the City of Tustin, and that OCSD has an agreement to transfer the ownership and maintenance responsibility of these retail facilities to the East Orange County Water District (EOC WD). He stated that EOC WD has a reorganization application into LAFCO to expand its powers to enable this transaction, and that LAFCO is now reviewing the EOCWD application and undertaking a Municipal Service Review (MSR) to assist in considering this issue. Mr. Kennedy stated the MSR is expected to be considered by the LAFCO Commission this spring and will consider if the Irvine Ranch Water District is more suited to take responsibility for Service Area 7. He stated that OCWD is watching this item because the sewage from this Service Area travels to OCSD Plant No. I and is necessary water for the GWRS System. He stated staff would investigate this issue and report back to the Board in the next few weeks with possible recommended actions. Irvine Ranch Water District General Manager Paul Cook noted the importance of protecting the flows for OCWD and urged the Board to work through the LAFCO process. Director Dewane asked Mr. Cook if it would be possible to create a condition precedent to contractually agree to maintain the flows to OCSD. Mr. Cook indicated he would need to confer with his Board of Directors. East Orange County Water District General Manager Lisa Ohlund stated that she believes this water has been dedicated to OCSD and indirectly to OCWD and requested that the OCWD Board agendize a letter of support for EOCWD in this matter. Directors Anthony and Dewane directed staff to agendize this matter for discussion at the next Board meeting 32. Committee/Conference/Meeting Reports The Board pointed out that the minutes of the following meetings were included in tonight s packet. January 08 January 12 January 14 January 15 - Communication/Legislative Liaison Committee - G WRS Steering Committee - Water Issues Committee - Administration/Finance Issues Committee 33. GWRS Initial Expansion Construction Update GWRS Program Manager Mehul Patel updated the Board on project construction and stated construction completion is anticipated for April Director Flory suggested artwork be placed on the top of the GWRS flow equalization storage tanks so that the OCWD project could be seen from the air. 14

15 34. VERBAL REPORTS Directors Flory and Yoh advised that they visited Assembly Woman Kim s office to discuss the GWRS North and South Basin contamination issues that the county is facing and requested funds from the Proposition 1 Bond. Director Green reported on a visit to Senator Janet Nguyen with General Manager Markus. Directors Bilodeau and Sarmiento reported on a visit last Friday with Assembly Member Wagner. ADJOURNMENT TO CLOSED SESSION The Board adjourned to Closed Session at 7:50 p.m. as follows: CONFERENCE WITH LABOR NEGOTIATORS [Government Code Section ] OC WD designated representative: Stephanie Dosier Employee Organization: Orange County Employee Association: and Non-Represented Employees (Confidential and Management) CONFERENCE WITH LEGAL COUNSEL Government Code Section (d)(2), Threatened post-redevelopment litigation by City of Yorba Linda against State Department of Finance CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section (D)(1): Western Riverside County Regional Wastewater Authority Wastewater Change Petition before State Water Resources Control Board (Petition No. WW-0067) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - [Government Code Section (a)] - One Case OCWD v. Sabic Innovative plastics, LLC, et al (South Basin Litigation) Superior Court Case No. 03CC RECONVENE IN OPEN SESSION The Board reconvened in Open Session at 8:13 p.m. whereupon General Counsel Joel Kuperberg stated that the Board, by a unanimous vote [10-0], took the following action in Closed Session. RESOLUTION CS AUTHORIZING DEFENSE OF ANTICIPATED LAWSUIT FILED BY THE CITY OF YORBA LINDA SUCCESSOR AGENCY AGAINST THE DEPARTMENT OF FINANCE, AND AUTHORIZING A WAIVER OF THE CONFLICT OF INTEREST FOR RUTAN AND TUCKER; AND ENTERING INTO A STIPULATION TO ABIDE BY THE FINAL JUDGEMENT AND STIPULATION IN THE CASE Ayes: Anthony, Bilodeau, Dewane, Green, Flory, Nguyen, Sarmiento, Sheldon, Sidhu, Yoh 15

16 ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 8:13 p.m. Janice Durant, Distriet Secretary Cathy President 16