CALLEGUAS MUNICIPAL WATER DISTRICT 2100 Olsen Road, Thousand Oaks, California

Transcription

1 CALLEGUAS MUNICIPAL WATER DISTRICT 2100 Olsen Road, Thousand Oaks, California BOARD OF DIRECTORS MEETING February 7, 2018, 5:00 p.m. AGENDA Written communications from the public must be received by 8:30 am on the Thursday preceding a regular Board meeting in order to be included on the agenda and considered by the Board at that meeting. Government Code Section prohibits the Board from taking action on items not posted on the agenda except as provided in Subsection (b). A. CALL TO ORDER, PLEDGE OF ALLEGIANCE, AND ROLL CALL BOARD OF DIRECTORS Thomas Slosson, President Andres Santamaria, Vice President Scott H. Quady, Treasurer Andy Waters, Secretary Steve Blois, Director B. MINUTES Action: It is recommended that the Board approve the January 17, 2018 minutes. C. WRITTEN COMMUNICATION D. ORAL COMMUNICATION Members of the public may address the Board on items within the jurisdiction of the Board that do not appear on the agenda. Please limit remarks to three minutes. E. GENERAL MANAGER 1. January 2018 Monthly Status Report F. FINANCE AND HUMAN RESOURCES 1. December 2017 Financial Statements 2. Fourth Quarter 2017 Capital Project Report Page 1 of 3 Calleguas MWD Agenda February 7, 2018

2 3. Fourth Quarter 2017 Investment Report G. OPERATIONS AND MAINTENANCE 1. Discussion regarding Calleguas joining the California Water/Wastewater Agency Response Network (CalWARN) Action: It is recommended that the Board authorize the General Manager to execute the necessary paperwork for Calleguas to become a signatory to the CalWARN mutual assistance agreement. H. RESOURCES AND PUBLIC AFFAIRS 1. Water Supply Update 2. Discussion regarding sponsorship of Southern California Water Coalition public outreach campaign in support of California WaterFix Action: It is recommended that the Board approve a payment of $20,000 to the Southern California Water Coalition to fund California WaterFix outreach. I. ENGINEERING AND CONSTRUCTION 1. Discussion regarding Calleguas LVMWD Interconnection 2. Discussion regarding Amendment No. 1 to the Agreement Between Las Virgenes Municipal Water District and Calleguas Municipal Water District for Interconnection Between Their Potable Water Systems Action: It is recommended that the Board authorize the General Manager to execute the amendment. 3. Engineering and Construction Committee Report J. STRATEGIC PLANNING K. DISTRICT COUNSEL L. BOARD OF DIRECTORS 1. Oral report on meetings attended by Board members 2. Discussion regarding upcoming meetings to be attended by Board members 3. Metropolitan update Page 2 of 3 Calleguas MWD Agenda February 7, 2018

3 4. Discussion regarding Calleguas joining the Ventura County Regional Energy Alliance Action: It is recommended that the Board: approve Resolution No approving, authorizing, and directing execution of a Joint Powers Agreement (JPA) relating to the Ventura County Regional Energy Alliance (VCREA), authorize the Board President and Board Secretary to sign the VCREA JPA, and appoint one Director and one alternate Director from the Calleguas Board of Directors to serve on the VCREA Board of Directors. M. CLOSED SESSION N. OTHER BUSINESS O. FUTURE AGENDA ITEMS P. ADJOURNMENT to February 21, 2018 at 5:00 p.m. Pursuant to Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec ), and applicable federal rules and regulations, requests for disability related modification or accommodation, including auxiliary aids or services, in order to attend or participate in a meeting, should be made to the Secretary to the Board in advance of the meeting to ensure the availability of the requested service or accommodation. Notices, agendas, and public documents related to the Board meetings can be made available in appropriate alternative format upon request. Page 3 of 3 Calleguas MWD Agenda February 7, 2018

4 Board Meeting Agenda Memo February 7, 2018 * An asterisk indicates that additional paperwork is provided in the packet. E. GENERAL MANAGER 1. January 2018 Monthly Status Report* F. FINANCE AND HUMAN RESOURCES 1. December 2017 Financial Statements* Section 4.5(e) of the Calleguas Administrative Code (Admin Code) says: The General Manager is authorized to make adjustments between accounts within the accounts of the budget that comprise Operating Administration Expenses provided that the total budget amount does not change and that the Board is notified of the adjustment within the next month as part of the monthly financial summary report. During January funds were transferred between accounts. In accordance with the Admin Code, a page has been added to the Financial Statements to explain and document the transfer. 2. Fourth Quarter 2017 Capital Project Report* 3. Fourth Quarter 2017 Investment Report** G. OPERATIONS AND MAINTENANCE 1. Discussion regarding Calleguas joining the California Water/Wastewater Agency Response Network (CalWARN) *** Action: It is recommended that the Board authorize the General Manager to execute the necessary paperwork for Calleguas to become a signatory to the CalWARN mutual assistance agreement. The mission of the California Water/Wastewater Agency Response Network (CalWARN) is to support and promote statewide emergency preparedness, disaster response, and mutual assistance processes for water and wastewater utilities. An agency joins CalWARN by signing a multi agency mutual assistance agreement (copies of the agreement and individual agency signature page are provided in the packet). There is no cost to join. Page 1 of 5 Calleguas Agenda Memo February 7, 2018

5 The mutual assistance agreement sets forth the terms by which CalWARN signatories can share labor, materials, and equipment with each other in an emergency. There is no obligation to assist an agency that requests help, but if assistance is provided, the terms for payment, indemnity, and other relevant issues are all clearly defined. District Counsel and staff have reviewed the agreement and find it fair and reasonable. District Counsel has confirmed that ACWA JPIA insurance covers Calleguas and its employees when serving in a mutual assistance role under this agreement. The value of CalWARN was observed by the Operations and Maintenance Manager and District Counsel respectively as the City of Ventura and Montecito Water District used CalWARN resources to restore water service after recent disasters. Many utilities in the general vicinity of Calleguas have joined CalWARN and a list is provided in the packet for reference. If Calleguas were to join, it would immediately have access to a large pool of labor, materials, and equipment to aid in recovering from an emergency. Additional information is available at H. RESOURCES AND PUBLIC AFFAIRS 1. Water Supply Update* 2. Discussion regarding sponsorship of Southern California Water Coalition public outreach campaign in support of California WaterFix Action: It is recommended that the Board approve a payment of $20,000 to the Southern California Water Coalition to fund California WaterFix outreach. In April 2017, the General Manager advised the Board about a proposed contribution of $30,000 (within her approval authority) for a targeted outreach campaign by the Southern California Water Coalition (SCWC) to generate support for California WaterFix. In July 2017, the Board approved an additional $50,000 for the campaign, for a total contribution of $80,000. Metropolitan, four other member agencies, and one subagency (Las Virgenes MWD, West Basin MWD, Eastern MWD, MWD of Orange County, and Irvine Ranch Water District) also contributed funds. The campaign was instrumental in mobilizing the necessary resources to get a 69% support vote for WaterFix at the Metropolitan Board in October 2017 despite some powerful opponents. As a result of the Central Valley Project s (CVP s) unwillingness to pay for the WaterFix infrastructure, the project proposed has changed. Only one tunnel is proposed to be built in the near term. The cost per acre foot of yield is expected to increase slightly and arrangements will need to be made with other State Water Project (SWP) and CVP contractors to account for a different allocation of costs and benefits for a single tunnel. If the state stays on schedule, details will be presented to the Metropolitan Board in Page 2 of 5 Calleguas Agenda Memo February 7, 2018

6 February, with a vote on the reconfigured project by the Metropolitan Board to be held in March. This new vote at Metropolitan creates another opportunity for project opponents to stop the project, and SCWC proposes an effort similar to the one last year to keep the project moving forward. It is recommended that Calleguas contribute $20,000 to this second WaterFix campaign. As the Board knows, failure of multiple levees in the Delta could result in years of massive water shortages in Ventura County, and even a slightly more expensive WaterFix is well worth the investment for our customers. It is expected that the same Southern California water agencies who contributed to last year s campaign will also contribute to this effort. There are sufficient funds in the Public Education budget to pay for this proposed expenditure. I. ENGINEERING AND CONSTRUCTION 1. Discussion regarding Calleguas LVMWD Interconnection The Manager of Engineering will provide an update on the Calleguas LVMWD Interconnection. 2. Discussion regarding Amendment No. 1 to the Agreement Between Las Virgenes Municipal Water District and Calleguas Municipal Water District for Interconnection Between Their Potable Water Systems** Action: It is recommended that the Board authorize the General Manager to execute the amendment. In March 2015, the Board approved the Agreement Between Las Virgenes Municipal Water District and Calleguas Municipal Water District for Interconnection Between Their Potable Water Systems (original Agreement). For Calleguas, the interconnection is a cost effective means of providing from 8 to 21 cubic feet per second to the Upper Zone during certain outages (which is just under half the capacity of the Aquifer Storage and Recovery Wellfield). The amendment incorporates two primary changes to the original Agreement: The original Agreement required completion of environmental review within three years of the effective date, which would be March 10, Due to the many technical challenges encountered during preliminary design, as well as ongoing pump station siting and right of way acquisition efforts, environmental review is not yet complete. The amendment provides an additional two years to complete environmental review. Page 3 of 5 Calleguas Agenda Memo February 7, 2018

7 The original Agreement required that environmental review be completed prior to initiating design. Since it would be more efficient to perform design concurrent with environmental review, the amendment revises the original Agreement to allow design to begin before environmental review has been completed. LVMWD and Calleguas staff, along with appropriate legal counsel, have negotiated the amendment for both Boards consideration. The amendment and original agreement are included in the packet. 3. Engineering and Construction Committee Report Committee Chair Blois will summarize the discussion from the Engineering & Construction Committee meeting held on January 22, J. STRATEGIC PLANNING K. DISTRICT COUNSEL L. BOARD OF DIRECTORS 1. Oral reports on meetings attended by Board members Pursuant to Government Code Section (d), Board members will provide oral reports on meetings attended at the expense of the District. 2. Discussion regarding upcoming meetings to be attended by Board members* The table of upcoming meetings is provided as a packet insert. 3. Metropolitan update Director Blois will provide an update on recent Metropolitan Board and committee meetings. 4. Discussion regarding Calleguas joining the Ventura County Regional Energy Alliance** Action: It is recommended that the Board: approve Resolution No approving, authorizing, and directing execution of a Joint Powers Agreement (JPA) relating to the Ventura County Regional Energy Alliance (VCREA), authorize the Board President and Board Secretary to sign the VCREA JPA, and appoint one Director and one alternate Director from the Calleguas Board of Directors to serve on the VCREA Board of Directors. Page 4 of 5 Calleguas Agenda Memo February 7, 2018

8 Calleguas was recently asked by Supervisor Linda Parks to consider joining the Ventura County Regional Energy Alliance (VCREA) and holding a seat on its Board of Directors. Her rationale was that (1) water is a large user of electricity, (2) there is a nexus between water use efficiency and energy efficiency (that is, saving water saves energy), and (3) Calleguas promotes water use efficiency and is a leader in developing renewable energy supplies (currently hydroelectricity and potentially solar). VCREA s mission is to coordinate with and assist public agencies, businesses, and residents to most efficiently utilize available resources to improve energy efficiency. VCREA offers services like rebates, audits, technical assistance, training, outreach, and installation of energy saving devices. VCREA is funded by a public goods charge on electric bills and by grants. It is staffed by the County of Ventura. Its current Board members are: Carmen Ramirez, Mayor Pro Tem, City of Oxnard (Chair) Mary Haffner, Board Member, Ventura Unified School District (Vice Chair) Linda Parks, Supervisor, County of Ventura Rob McCoy, Councilmember, City of Thousand Oaks Tim Holmgren, Councilmember, City of Fillmore Christy Weir, Councilmember, City of Ventura John Procter, Councilmember, City of Santa Paula Atruro Hernandez, Trustee, Ventura County Community College District Jonathan Sharkey, Board Member, Ventura Regional Sanitation District Having a Calleguas Board member serve on the VCREA Board could help further our mission. We could (1) promote or get funding for water saving measures that also save energy and (2) network with others in the county who may be partners on issues or projects of value to Calleguas. Director Quady has expressed an interest in serving. In order to serve on the VCREA Board, Calleguas must sign on to the VCREA Joint Powers Agreement (JPA). Counsel and the General Manager have reviewed the JPA and find the terms acceptable. The only cost of this action is to send a Board member to meetings six times per year. There could be future decisions to participate financially in activities of the VCREA, but there is no obligation to do so. Resolution No and the Joint Powers Agreement are provided in the packet. Additional information is available at Page 5 of 5 Calleguas Agenda Memo February 7, 2018

9 B-MINUTES CALLEGUAS MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS MEETING January 17, 2018 MINUTES The meeting of the Board of Directors of Calleguas Municipal Water District was held at the District Office, 2100 Olsen Road, Thousand Oaks, California, on January 17, The meeting was called to order by Thomas L. Slosson, President of the Board, at 5:00 p.m. A. CALL TO ORDER, PLEDGE OF ALLEGIANCE, AND ROLL CALL Directors Present: Staff Present: Legal Counsel Present: Thomas L. Slosson, President Andres Santamaria, Vice President Scott Quady, Treasurer Steve Blois, Director Andy Waters, Secretary Susan Mulligan, General Manager Eric Bergh, Manager of Resources Henry Graumlich, Manager of Strategic Planning Tony Goff, Manager of Operations and Maintenance Kristine McCaffrey, Manager of Engineering Dan Smith, Manager of Finance and Human Resources Kara Wade, Clerk of the Board Robert Cohen, Cohen & Burge, LLP, District Counsel B. MINUTES On a motion by Director Quady, seconded by Director Blois, the Board of Directors voted 5 0 to approve the January 3, 2018 minutes as amended. AYES: Directors Blois, Quady, Waters, Santamaria, Slosson NOES: None Page 1 of 9 Calleguas MWD Minutes January 17, 2018

10 C. WRITTEN COMMUNICATION 1. Coalition letter dated January 3, 2018 Oppose AB 792 (Frazier) Sacramento San Joaquin Delta, Delta Stewardship Council The General Manager said that Calleguas signed on to a coalition letter in opposition to proposed restructuring of the Delta Stewardship Council that would result in disproportionate representation on the Council of Delta area jurisdictions that have been historically opposed to the Council and its Delta Plan. The bill was subsequently pulled from consideration. No action was taken. D. ORAL COMMUNICATION None Director Slosson said that Item I 1 would be heard at this time. I. ENGINEERING AND CONSTRUCTION 1. Discussion regarding the Water Supply Alternatives Study, including a potential project with Crestview Mutual Water Company The Manager of Engineering said that Phase 1 of the Water Supply Alternatives Study (WSAS) identified and evaluated at a screening level potential alternative water supplies to enable Calleguas to continue to cost effectively provide a reliable water supply to its service area, particularly under emergency scenarios when imported water is not available. Over the past few months, the General Manger and the Manager of Engineering have met with numerous purveyors and other local water agencies to refine the alternatives and identify specific potential projects that could provide water supply during outage conditions. These potential projects will be evaluated during Phase 2 of the WSAS. Due to the number of projects and their complexity, it is anticipated that Phase 2 will take approximately 18 months to complete; however, to take advantage of opportunities with a limited time window, it may be appropriate for Calleguas to take action on certain projects before the WSAS is complete. One of these opportunities is to participate with Crestview Mutual Water Company (Crestview) to construct a new well (Well No. 8) in Camarillo, utilizing property available within a planned residential development. Robert Eranio, Consulting General Manager of Crestview, said that Well No. 8 could provide approximately 3 cubic feet per second, which could be delivered under outage conditions through Crestview s existing interconnections with California American Water Co. and the City of Camarillo or through the planned Calleguas Crestview Interconnection. The Manager of Engineering said that a new groundwater well and agreement for Crestview to pump it for Calleguas and its purveyors benefit during an outage is anticipated to be one of the most cost Page 2 of 9 Calleguas MWD Minutes January 17, 2018

11 effective projects to provide additional water supply. During normal operating conditions, Crestview would operate the well in accordance with its own needs. On a motion by Director Blois, seconded by Director Santamaria, the Board of Directors voted 5 0 to authorize the General Manager to negotiate the terms of an agreement with Crestview Mutual Water Company to participate in the Well No. 8 project, subject to subsequent Board approval. AYES: Directors Blois, Quady, Waters, Santamaria, Slosson NOES: None E. GENERAL MANAGER 1. Public hearing and discussion regarding amendments to Ordinance No. 19, covering the rules and regulations for use of the Salinity Management Pipeline At 5:37 p.m., Director Slosson opened the public hearing. There were no comments from the public. At 5:38 p.m., Director Slosson closed the public hearing. AN ORDINANCE OF CALLEGUAS MUNICIPAL WATER DISTRICT COVERING THE RULES AND REGULATIONS FOR USE OF THE SALINITY MANAGEMENT PIPELINE The General Manager said that, at its December 6, 2017 meeting, the Board of Directors discussed amendments to Ordinance No. 19, covering the rules and regulations for use of the Salinity Management Pipeline (SMP), and set a hearing date of January 17, 2018 for consideration of the amended ordinance. A notice of hearing was published twice in a newspaper of general circulation and posted on the District s notice boards. The District received no comments from the public regarding this matter. The amendments are as follows: Modify the indemnity language to protect Calleguas from potential claims associated with water rights or the Sustainable Groundwater Management Act, such as those related to groundwater production for a desalter discharging brine to the SMP. Add a requirement that, if an SMP Discharge Station discharges flows from more than one source, Calleguas has access to a sampling location for each individual source. Add a requirement that dischargers notify Calleguas within 24 hours if they become aware that their discharge fails to comply with a water quality standard. Add a requirement that the discharger provide written notice of startup, and Page 3 of 9 Calleguas MWD Minutes January 17, 2018

12 submit and receive Calleguas approval of a water quality compliance plan and a monitoring and recordkeeping plan, prior to startup or change in source. Update references to the California Department of Public Health to the State Water Resources Control Board Division of Drinking Water to reflect the change in regulatory authority. On a motion by Director Quady, seconded by Director Blois, the Board of Directors voted 5 0 to adopt amended Ordinance No. 19. AYES: Directors Blois, Quady, Waters, Santamaria, Slosson NOES: None F. FINANCE AND HUMAN RESOURCES 1. December 2017 Water Use and Sales, November 2017 Power Generation, and December 2017 Investment Summary Reports The Manager of Finance and Human Resources presented the reports. No action was taken. 2. Disbursements for the District s monthly activities for November 2017 Director Quady presented the disbursement report. The Board asked questions and the managers answered them. On a motion by Director Quady, seconded by Director Waters, the Board of Directors voted to approve the outstanding bills for payment. AYES: Directors Quady, Waters, Santamaria, Slosson NOES: None ABSTAIN: Director Blois G. OPERATIONS AND MAINTENANCE The Manager of Operations and Maintenance updated the Board on the status of inspections of Calleguas prestressed concrete cylinder pipe as of January H. RESOURCES AND PUBLIC AFFAIRS 1. Imported Water Supply Conditions Report The Manager of Resources provided an update on water supplies. No action was taken. Page 4 of 9 Calleguas MWD Minutes January 17, 2018

13 1. Discussion regarding Resolution No. 1934, Calleguas Municipal Water District Annexation Ocean View Schools (Calleguas Annexation No. 101) RESOLUTION OF THE BOARD OF DIRECTORS OF CALLEGUAS MUNICIPAL WATER DISTRICT INITIATING PROCEEDINGS FOR THE CONCURRENT ANNEXATION OF TERRITORY WITHIN THE COUNTY OF VENTURA TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA AND TO THE CALLEGUAS MUNICIPAL WATER DISTRICT AND REQUESTING APPROVAL BY METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA AND VENTURA LOCAL AGENCY FORMATION COMMISSION Calleguas Municipal Water District Annexation Ocean View Schools (Calleguas Annexation No. 101) The Manager of Resources said that this resolution initiates Calleguas Annexation No Located a short distance south of Etting Road on the east side of Olds Road in Oxnard, this annexation consists of 5.3 acres comprising the southernmost portions of two adjacent school campuses and some public right of way. Presently, the land is developed with a pre school and turf playground areas serving Ocean View Jr. High School and Mar Vista Elementary School. Many years ago the schools expanded into the subject property. However, the subject property lies outside the incorporated area of the City of Oxnard and Calleguas. The schools have been served by the City of Oxnard since construction in the 1970 s. Annexation No. 101 will satisfy the requirement that any land benefiting from Calleguas water be within its service area. Concurrent annexation to the City of Oxnard is underway. California Environmental Quality Act (CEQA) compliance was addressed by the City with a Notice of Exemption. In April 2017 the City delivered a deposit check in the amount of $18,000 against outof pocket administrative expenses of the annexation. Craig Helmstedter, the Superintendent of Ocean View School District, signed a Landowner s Request to Annex and Approval of Parcel Charges and an indemnity agreement. These minutes acknowledge a misspelling in the title of the Resolution, and memorialize that the correct reference in the title of the Resolution is to the Ventura Local Agency Formation Commission. On a motion by Director Blois, seconded by Director Santamaria, the Board of Directors voted 5 0 to adopt Resolution No Resolution No is attached and made part of these minutes. AYES: Directors Blois, Quady, Waters, Santamaria, Slosson NOES: None Page 5 of 9 Calleguas MWD Minutes January 17, 2018

14 I. ENGINEERING AND CONSTRUCTION 1. Discussion regarding the Water Supply Alternatives Study, including a potential project with Crestview Mutual Water Company This item was heard earlier. 2. Discussion regarding approval of a capital project budget allocation in the amount of $2,250,000 for the LVMWD CMWD Interconnection (Project No. 450) The Manager of Engineering said that Calleguas and Las Virgenes Municipal Water District (LVMWD) have entered into an agreement to interconnect their systems to improve system reliability for both agencies. For Calleguas, the interconnection is a cost effective means of receiving potable water from LVMWD if Calleguas experiences an outage that doesn t affect LVMWD s supply. These outages could include those affecting East Portal, the Santa Susana Tunnel, Calleguas Conduit North Branch, Calleguas Conduit South Branch, the Lindero Feeders, and the westernmost portion of West Valley Feeder No. 2. The interconnection is anticipated to provide approximately 8 to 21 cubic feet per second to Calleguas Oak Park and Conejo Valley regions. The primary interconnection improvements include: A pump station, including two vertical turbine pumps with 350 horsepower motors and related electrical equipment, to deliver water from LVMWD to Calleguas. A pressure reducing station, including two parallel control valves, to deliver water from Calleguas to LVMWD. A pump station building, approximately 70 feet by 40 feet by feet tall, in an architectural style consistent with other structures in the vicinity, and incorporating appropriate noise mitigation measures, to house the pumps and electrical equipment. Additional landscaping, utility, surge, site, and drainage improvements for access, visual screening, surge protection, and utility service, as well as improvements negotiated with the underlying property owner as part of the right of way acquisition process. Approximately 7,500 linear feet of 30 inch diameter welded steel pipeline from the pump station to the point of connection to Calleguas system at Kanan Rd. and Falling Star Ave. An upgrade to an existing Lindero Pump Station No. 1 reverse flow valve to increase flow capacity from Calleguas Oak Park region to its Conejo Valley region during operation of the interconnection, enabling water from the interconnection to be delivered to a larger part of the Calleguas service area. Page 6 of 9 Calleguas MWD Minutes January 17, 2018

15 A map showing the location of these improvements, a layout of the proposed pump station/pressure reducing station site, and an architectural rendering of the pump station building and site are included in the packet. The previous budget covered only the preliminary design phase, which is now complete. The project is ready for CEQA review, right of way acquisition, and design; additional budget needs to be allocated to move forward with this next phase. The budget will be amended as needed for bidding and construction as those activities are undertaken. This work has been planned for in the Five Year Capital Improvement Plan and the necessary funds are available. The preliminary construction cost estimate for this project is $13 million, which will be updated once detailed design is completed. On a motion by Director Quady, seconded by Director Waters, the Board of Directors voted 5 0 to approve the capital project budget allocation. AYES: Directors Blois, Quady, Waters, Santamaria, Slosson NOES: None 3. Discussion regarding approval of professional services by Phoenix Civil Engineering, Inc. to perform design for the LVMWD CMWD Interconnection (Project No. 450), for an amount not to exceed $1,697,758 The Manager of Engineering said that the LVMWD CMWD Interconnection was described in the agenda item above. Design services include: Surveying the pump station site and interconnection pipeline alignment. Performing a geotechnical investigation, including borings at the pump station site and at key locations along the interconnection pipeline alignment, such as anticipated trenchless crossings and areas where there may be shallow bedrock. Performing a noise analysis for the pump station, including developing noise mitigation measures and incorporating those measures into the design. Developing a surge model for the Oak Park and Conejo Valley regions of the Calleguas system (the only significant portion of Calleguas system that has not been previously modeled) and the relevant portions of the LVMWD system, performing a surge analysis, and developing surge mitigation measures and incorporating those measures into the design. Preparing plans and specifications for the pump station, pressure reducing station, interconnection pipeline, and site improvements, including civil, architectural, structural, mechanical, electrical, instrumentation, traffic control, and landscape elements. Evaluating construction phasing requirements. Estimating construction costs. Coordinating with utilities, including Southern California Edison (electrical), Triunfo Sanitation District (sewer), and AT&T (communications). Page 7 of 9 Calleguas MWD Minutes January 17, 2018

16 Preparing a Storm Water Pollution Prevention Plan. Supporting Calleguas permitting and community outreach efforts. In accordance with the interconnection agreement, although Calleguas is responsible for the design, LVMWD will reimburse Calleguas for the costs associated with designing (and ultimately constructing) the pressure reducing station. LVMWD is responsible for design and construction of the portion of the pipeline between the pump station/pressure reducing station and the connection point with their system. However, Calleguas is responsible for the cost of design (and construction) of the pipeline between the county line and the pump station/pressure reducing station. Phoenix Civil Engineering, Inc. (Phoenix) recently completed preliminary design. They have relevant experience and expertise and are familiar with Calleguas infrastructure and operational requirements. Phoenix s work on this and other projects has been of good quality and the cost for professional services is reasonable for the work required. On a motion by Director Waters, seconded by Director Blois, the Board of Directors voted 5 0, to approve the professional services. AYES: Directors Blois, Quady, Waters, Santamaria, Slosson NOES: None J. STRATEGIC PLANNING The Manager of Strategic Planning informed the Board that Karla Nemeth, the new Director of the Department of Water Resources, had been secured as the keynote speaker for the 2018 Association of Water Agencies of Ventura County Symposium. K. DISTRICT COUNSEL District Counsel gave a brief update on the Montecito mudslide disaster and its effect on the Montecito Water District. The Manager of Engineering gave an update on the filing of the amicus curiae brief in the case of Winding Creek Solar LLC v. Florio. She said that she prepared a declaration documenting Calleguas harm, which became part of the filing by the California Public Utilities Commission for a motion to stay the ruling suspending the Renewable Market Adjusting Tariff (ReMAT) program. The affected water agencies decided that an amicus brief was not appropriate at this time because the declaration served a similar purpose; however, there may be an appropriate opportunity to file an amicus brief later in the appeals process. She also said that it would be best not to file a claim against Southern California Edison until after the court rules on the motion to stay. If the motion to stay is granted, then Page 8 of 9 Calleguas MWD Minutes January 17, 2018

17 there will be no need to file a claim. The hearing on the motion to stay is scheduled for February 8, L. BOARD OF DIRECTORS 1. Oral reports on meetings attended by Board members Board members provided oral reports on meetings attended at the expense of the District, pursuant to Government Code Section (d). All expenses would be filed at the end of the month, accompanied by receipts. 2. Discussion regarding upcoming meetings to be attended by Board members The Board discussed meetings they planned to attend. 3. Metropolitan update Director Blois said that the Metropolitan report was included in the Board packet. The Metropolitan Board had adopted legislative policies and approved various capital projects. He noted the approval of steel lining of prestressed concrete cylinder pipe in four locations, one of which will be the Calabasas Feeder, which will require completion of the Calleguas Las Virgenes interconnection before it can be built. N. OTHER BUSINESS None O. FUTURE AGENDA ITEMS None P. ADJOURNMENT Director Slosson declared the meeting adjourned at 7:03 p.m. Respectfully submitted, Andy Waters, Board Secretary Page 9 of 9 Calleguas MWD Minutes January 17, 2018

18 E-1 GENERAL MANAGER THOMAS L. SLOSSON, PRESIDENT DIVISION 1 ANDRES SANTAMARIA, VICE PRESIDENT DIVISION 4 ANDY WATERS, SECRETARY DIVISION 3 SCOTT H. QUADY, TREASURER DIVISION 2 STEVE BLOIS, DIRECTOR DIVISION 5 SUSAN B. MULLIGAN GENERAL MANAGER web site: OLSEN ROAD THOUSAND OAKS, CALIFORNIA / FAX: 805/ To: Board of Directors From: Susan Mulligan, General Manager Date: January 31, 2018 Subject: Monthly Status Report on District Activities Engineering Construction 1. Wellfield Emergency Generators (494) Stronghold Engineering, Inc. (SEI) submitted shop drawings and performed pre-construction video documentation of the site. Staff continued coordinating with Southern California Edison (SCE) regarding equipment submittal and schedule requirements. (CIP Priority: High) 2. Grandsen Pump Station, Phase 2, Standby Generators, Hydroelectric Generator, and Regulating Station No. 2 Relocation (500) Shimmick Construction Company (Shimmick) continued construction of the roofing system for the pump station building, including installation of the metal flashing and gutters. Shimmick continued work on electrical equipment, conduits, wiring, and instrumentation. They completed installation of the structural steel, canopy, and metal decking over the diesel fuel storage facility and reinstalled the canopy over the SCE facility. Shimmick worked on the exhaust piping and silencers for the diesel backup generators. They applied the stucco to the exterior of the new building and the diesel fuel facility. At the surge tank facility in Simi Valley, Shimmick completed work on the electrical system and performed testing of the wiring and electrical system. Water & Energy Consulting submitted an evaluation of other potential tariff options to sell power to SCE from Grandsen Hydro instead of the Renewable Market Adjusting Tariff (ReMAT), which is under review by staff. (CIP Priority [Pump Station and Pressure Regulating Station No. 2 Replacement]: High; CIP Priority [Hydro]: Low) 3. Plastic Pipe Storage Project (534) JEC, Inc., continued to submit shop drawings, which Perliter & Ingalsbe (P&I) reviewed. P&I completed revisions to the building footing and foundation plan, which were required as a result of the building and cantilever rack system that JEC submitted. (CIP Priority: Medium)

19 4. Anode Well Replacement (539) Farwest Corrosion Control (Farwest) completed the Grimes Canyon anode well and started drilling on the North Somis anode well. (CIP Priority: High) 5. Networking Center Upgrades (551) All phone system equipment has been delivered. AllConnected installed the servers and switches and started preliminary configuration. Empire Cabling installed and tested the fiber optic cables required for the phone system and continues with other upgrades. (CIP Priority: Medium) 6. Moorpark Feeder Unit 2 Strengthening (559) Fabrication of pipe for the remaining nine locations continued. (CIP Priority: High) 7. Pressure Regulating Station No. 8 Ventu Park Turnout Conduit Realignment The City of Thousand Oaks directed Calleguas to relocate existing electrical conduits serving Pressure Regulating Station No. 8 and Ventu Park Turnout within the public right-of-way to accommodate modifications to Newbury Road. Since the City s Newbury Road modification project was already under construction, the relocation had to be performed immediately to minimize delays to the City s contractor. Taft Electric Co. relocated the conduits and O&M staff made the necessary terminations. Design 8. OSR Feeder, LPF, Santa Rosa Hydro, and Miscellaneous Valve Improvements (442) P&I continues with preparation of the 60 percent plans and specifications. (No change.) (CIP Priority: Medium) 9. LVMWD-CMWD Interconnection (450) Phoenix Civil Engineering (Phoenix) began design for the LVMWD-CMWD Interconnection, focusing their initial efforts on the pipeline design. Staff presented the project to the Rancho Simi Recreation and Park District (RSRPD) Oak Park Advisory Committee on January 11, RSRPD Board of Directors on January 18, and the Oak Park Municipal Advisory Council on January 23. (CIP Priority: High) 10. PLC Replacement Project (489) Staff is reviewing the revised Control Philosophy. Work on Binary Logic Diagrams and Process Flow Diagrams will continue after Control Philosophy review. (CIP Priority: Medium) 11. Wellfield Water Treatment Plant (506) K/J submitted a revised prequalification package for potential large-diameter cartridge filter suppliers, which is under review by staff. (CIP Priority: Low) 12. Las Posas Basin Deep Groundwater Monitoring Project, Additional Deep Wells (527) K/J continued design for the second and third monitoring wells. Staff continues to 2

20 negotiate with an additional property owner who may be willing to grant easements for monitoring wells. (CIP Priority: Medium) 13. Salinity Management Pipeline, Phase 3 (536) Staff worked with P&I to develop an approach to installing and supporting the pipeline within the Upland Road bridge that balances constructability and long-term support needs. (CIP Priority: Low) 14. Crestview Interconnection (552) Michael K. Nunley & Associates, Inc. (MKN) continues to prepare 90 percent plans and specifications. Staff prepared an amendment to the interconnection agreement to address several modifications that are necessary to reflect the anticipated design and operation of the interconnection. (CIP Priority: Medium) 15. Turnout PC Upgrade Pilot (558) Nick Peros, P.E. and AllConnected migrated the purveyor and discharger websites from the old servers to the new ones. AllConnected is working on the cellular communication element. (CIP Priority: Medium) 16. Salinity Management Pipeline, Phase 4 (561) P&I is revising the draft preliminary design report (PDR). (CIP Priority: Low) 17. Calleguas-Ventura Interconnection (562) K/J continues to work on the revised Alignment Study Report. The Manager of Engineering and General Manger are reviewing the draft Operations and Delivery Plan and revised draft Notice of Preparation for the Environmental Impact Report. (CIP Priority: High) 18. Dam, Dike 1, and Springville Reservoir Erosion Repair and Drainage Improvements (565) Staff reviewed 60 percent plans and specifications and provided comments to MNS Engineers. MNS is preparing 90 percent plans and specifications. (CIP Priority: Medium) 19. Simi Valley Reservoir (569) P&I submitted a draft package identifying potential sites for the new reservoir. Staff reviewed the package and provided comments to P&I; P&I is finalizing the package. (CIP Priority: High) 20. Toe of Dam (TOD) Pump Station Distress Study (570) Oakridge Geoscience, Inc. (OGI) submitted a draft report documenting the findings of their field investigation of the settlement observed at TOD Pump Station. Staff reviewed the report and provided comments to OGI; OGI is revising the report. (CIP Priority: Not Reviewed) Miscellaneous 21. Training Two of the construction inspectors presented to Engineering staff on topics relevant to recent projects: one on mechanical fittings and restraints for plastic pipe and one on the techniques used to locate the correct pipe segments for replacement on the Moorpark Feeder Unit 2 Strengthening. The Manager of Engineering attended a 3

21 webinar on updates to prevailing wage and labor compliance laws hosted by the California Special Districts Association. 22. Water Supply Alternatives Study The General Manager and Manager of Engineering continued to work with K/J on developing the scope for Phase 2. A meeting was held with United Water Conservation District staff to discuss potential projects. Operations and Maintenance 23. Operations and Maintenance staff spent time this month working on a shutdown and inspection of the Calleguas Conduit South Branch (CCSB). Shutdown activities included: Isolating Brandeis, Stearns, and Tapo Street service connections Isolating and dewatering 1 mile of 51-inch and 48-inch pre-stressed concrete cylinder pipe Performing structural inspection of CCSB Facilitating electro-magnetic inspection of CCSB Replacement of appurtenance isolation valves Recharging the CCSB Collecting bacteriological samples Returning service connections to normal operation 24. Operations and Maintenance staff performed a two-day shutdown of TOD Pump Station to install a spare discharge valve for Pump 4, to make field repairs to Pump 2 discharge valve, and assess Pump 2 broken check valve. The shutdown was completed on schedule and TOD Pump 2 and 4 were returned to service. 25. Calleguas SMP facilities began delivering Oxnard s AWPF water to upstream agricultural users on January 29. In addition to this activity, both Camrosa Water District and Port Hueneme Water Agency are continuing to work on starting up their desalters to discharge into the SMP. 26. Operations and Maintenance staff provided design review, technical, and field support to the Engineering Department on various projects including: Anode Well Replacement Control Systems: field support, Networking Center Upgrades Control Systems: technical support, Pressure Regulating Station No. 8 Ventu Park Turnout Conduit Realignment Control Systems: field support, PLC Replacement Project Control Systems: technical support, Turnout PC Upgrade Pilot Project Control Systems: technical support, and Dam, Dike 1, and Springville Reservoir Erosion Repair and Drainage Improvements: design review. 4

22 27. Control Systems staff spent time installing a new level probe in Well 1, collecting quarterly readings for the Las Posas Basin Monitoring Program, and performing annual preventive maintenance on Springville Hydroelectric Generator. 28. Control Systems staff performed preventative maintenance and routine inspection on: Wellfield ammonia system, Wellfield chlorine system, District Headquarters, East Portal Hydroelectric Generator, Springville Hydroelectric Generator, West Portal Overflow Station, TOD Pump Station, Lake Sherwood Pump Station, Pressure Regulating Station 8, Mesa Relief Station, Grimes Canyon Reservoir, Springville Reservoir, Conejo Standby Generators, Lake Bard Water Filtration Plant, Brandeis service connection, California Water service connection, Camrosa service connections, City of Simi Valley service connections, VCWWD service connections, and Wells 1, 10, 12, and Distribution System staff spent time performing annual preventive maintenance on Springville Hydroelectric Generator, supporting contractor activities during the annual preventive maintenance of Las Posas Wellfield chlorine systems, and testing and repairing TOD Pump Station components. 30. Distribution System staff performed preventative maintenance and routine inspection on: Wellfield chlorine system, PHWA Discharge Station, Conejo Hydroelectric Generator, East Portal Hydroelectric Generator, Santa Rosa Hydroelectric Generator, Springville Hydroelectric Generator, Lake Sherwood Pump Station, Lindero Pump Station, TOD Pump Station, 5

23 Pressure Regulating Stations No. 6 and 9, CCNB Relief Station, Newbury Park Reservoir, SMP Control Tank, Springville Reservoir, Thousand Oaks Reservoir, Lake Bard Water Filtration Plant, City of Simi Valley service connections, and City of Thousand Oaks service connections. 31. System Maintenance staff spent time performing the CCSB shutdown and inspection, performing a Lindero Feeder shutdown, and continuing to abandon Donlon Service Connection. System Maintenance staff performed preventative maintenance and routine inspection on: District Headquarters, Springville Hydroelectric Generator, Lake Bard site, Calleguas Conduit No. 5, Calleguas Conduit North Branch No. 5, SMP Phases 1A and 1B, Grandsen Pump Station, Lake Sherwood Pump Station, Newbury Park Reservoir, SMP Control Tank, Springville Reservoir, Thousand Oaks Reservoir, Westlake Reservoir, Camrosa service connections, Solano Verde service connection, and Wellfield site. 32. Water quality met all State and Federal standards for the month of January. 33. Groundwater storage totals through the end of December include three acre feet well production and 265 acre feet of well injection. 6

24 Groundwater storage totals through December are as follows: East Las Posas Wellfield Injection East Las Posas In Lieu West Las Posas In Lieu Oxnard In Lieu Pleasant Valley In Lieu Conejo Creek Project 10,751 acre feet 6,442 acre feet 25,314 acre feet 16,524 acre feet 1,736 acre feet 23,253 acre feet 34. The East Portal and Santa Rosa Hydroelectric Generators are currently available for operation and on-line as flow conditions permit. The Conejo Hydroelectric Generator is currently out of service due to the Moorpark Feeder Unit 2 Strengthening Project. The Springville Hydroelectric Generator is out of service and undergoing scheduled preventive maintenance. 35. The District measured 2.02 inches of rainfall from January 1 to January 30 at the Lake Bard site. Measurable rainfall for the current water year, beginning October 1, is 2.03 inches. Resources Development & Planning Programs 36. Calleguas Annexation No. 86 Oxnard Tenth Fringe The owner representative reports the site is undergoing environmental cleanup and there may be firm direction within a few months. 37. Calleguas Annexation No. 101 Ocean View Schools At its regular meeting on December 17, the Board adopted Resolution No initiating the annexation and requesting its approval from Metropolitan and the Ventura Local Agency Formation Commission (LAFCo). The following day the application package was sent to Metropolitan. Soon City of Oxnard and Calleguas staff will begin assembling the LAFCo application. Information Technology 38. Geographic Information System (GIS) Sanborn Map Company Inc. recently completed its flights of the Calleguas service area to capture LiDAR data for the production of new topography contours and comparison with 2002 data to detect changes. In processing the data, a higher than expected incidence of false positive indicators of change were encountered in some areas. Sanborn is further analyzing older data to remedy the problem. Complete 7

25 data processing and production of new contours as GIS shapefiles is expected by June. In November, Trimble Navigation began an update of the Calleguas facilities in the WebGIS. Core work involves adding 27 recently completed specifications to the facilities layer and also providing access to scanned plan sheets. It will also include additions, corrections or deletions of 40 right-of-way parcels. Lastly, a number of small updates to or corrections of facilities already in the WebGIS are underway. Staff is reviewing updates for accuracy. Trimble s work is approximately 40% complete and updates are expected be published to the WebGIS in about two months. 39. Resources staff performed or participated in the following tasks and activities: Ongoing coordination with AllConnected regarding system modifications recommended in response to findings of recent cyber-risk assessment report, Coordination with CalNet, the District s Laserfiche file management system vendor, on server upgrades and procurement and installation of records retention module. Public & Legislative Affairs / Conservation 40. On January 26, the Manager of Resources and a representative from the UC Master Gardener (UCMG) program met with a staff writer from the Acorn to discuss current statewide and regional water conditions, supply/demand scenarios, and current water use efficiency programs with emphasis on the ongoing drip irrigation training workshops. A story is expected to be published by mid-february. 41. On January 31, the Board President provided a presentation on Calleguas and contemporary water issues to Royal High School students participating in the Ronald Reagan Citizen Scholar Institute program. Social media posting Conservation Programs District staff organized a purveyor Conservation Coordinator/Public Information Officer meeting held at the District on January 24. The meeting was well-attended and included and water supply and legislative updates from the Manager of Resources, a report from Metropolitan staff regarding possible changes to their programs in FY 2019, and purveyor activity updates. 25 area residents participated in the January drip irrigation training workshop. Interest in upcoming workshops is increasing with 77 having registered for the February session. The UCMGs intend to manage the high interest by scheduling some participants for the March session. Comments by a some recent participants 8

26 were posted to Calleguas Facebook page - During the month, residential rebates were issued for 26 high efficiency clothes washers, 61 rotating nozzles, and nine weather-based irrigation controllers. For the commercial program, rebates were issued for four weather-based irrigation controllers. In recent months, Metropolitan s service area as a whole has experienced reduced participation in the regional rebate program. Display advertisements promoting the program will be published in the various editions of the Acorn in February and March. Strategic Planning 43. Metropolitan Water District the Metropolitan Board of Directors met in committees and as a Board in January. The following items were of particular interest to the District and its purveyors. California WaterFix: On January 23, Metropolitan s Special Committee on Bay-Delta received an update on California WaterFix and the process for the Metropolitan Board s future deliberations. The state will be releasing details of a downsized project that corresponds to the current project participation. Following the State s new characterization of the project, the Metropolitan Board will review the project and its participation in the project as follows: February 12 Water Planning and Stewardship Committee: Review of updated project information from State. February 27 Special Committee on Bay-Delta: revised cost/benefit analysis, water transfer agreements, relationship to Metropolitan s Integrated Resources Plan, outline of March Board action. March 13 Board Meeting: Metropolitan s adjusted cost share, water transfer agreements, gap funding. Regional Assessment of Stormwater Capture Potential: On January 8, the Conservation and Local Resources Committee received an update on the potential for stormwater capture in Metropolitan s service area. Stormwater is often cited as an underutilized water resource that could be used to reduce local dependence on imported water supplies. Metropolitan staff analyzed precipitation, actively managed recharge facilities, passive recharge evapotranspiration and runoff to the ocean for its entire service area. Stormwater outflows to the ocean amount to a median flow of about 457,000 acre feet. Surprisingly, this accounts for only about 7 percent of the precipitation in the service area. The remainder is captured through passive and active recharge, or is used by vegetation. The results of the analysis suggest that stormwater capture projects will need careful consideration for net 9

27 benefit and to weigh against the environmental uses supported by outflows to the ocean. Groundwater Resources 44. Aquifer Storage and Recovery (ASR) Non District Well Monitoring and Pump Lowering (Project No. 518) The 4th quarter data collection, maintenance, and monitoring data processing tasks were completed. Groundwater Modeling (Project No. 528) The preliminary draft modeling report was finalized and provided to the Fox Canyon Groundwater Management Agency (FCGMA) Technical Advisory Group (TAG) for peer review. The Contract Groundwater Manager and modeling consultant prepared for and presented at the TAG workshop concerning the groundwater model on January 30. Groundwater Storage Accounting The Contract Groundwater Manager worked on a comprehensive review of Calleguas Supplemental M&I Program groundwater storage accounting for the Oxnard and Pleasant Valley Basins. 45. Las Posas Valley Basin Users Group (LPUG) LPUG met on January 10 with the General Manager and Contract Groundwater Manager in attendance. During the meeting, LPUG reviewed permit applications for two replacement wells, discussed the Las Posas Valley Basin (LPVB) groundwater sustainability plan (GSP) status, and received an update from the LPUG Chairperson concerning the pumping allocation plan. 46. Fox Canyon Groundwater Management Agency FCGMA Board of Directors The FCGMA Board of Directors met on January 3 and 24. The January 3 meeting included status updates on the GSPs and interim allocation plan for the Oxnard and Pleasant Valley Basins. The Board of Directors opened a 90-day public comment period for review of the preliminary draft GSPs. The FCGMA Board of Directors directed its Fiscal Committee to work on a process for identifying groundwater replenishment projects for inclusion in the GSPs. During the January 24 meeting, the FCGMA Board of Directors received a presentation from United Water Conservation District concerning potential water supply and economic impacts for Endangered Species Act compliance at the Vern Freeman Diversion. FCGMA staff provided an update concerning implementation of the Las Posas Valley Basin allocation system. FCGMA staff is continuing its efforts to identify the Las Posas Basin Water Rights Coalition s membership and solicit specific recommendations from that group with respect to the LPUG-proposed allocation plan. The FCGMA Board of Directors approved a contract amendment for the GSP 10

28 consultant and approved a resolution that increases the FCGMA Executive Officer s contracting authority. FCGMA Technical Advisory Group (TAG) TAG met on January 4 and January 30, with the Contract Groundwater Manager in attendance representing FCGMA Director Borchard. TAG received updates on the rollout of the preliminary draft GSPs and discussed water budgets and sustainable management criteria at length. The Contract Groundwater Manager pointed out significant concerns with both subjects in the preliminary draft GSPs. United Water Conservation District provided an update on its groundwater model project. The Contract Groundwater Manager provided a status update on Calleguas groundwater model project.. The January 30 TAG meeting was a workshop focused on the Calleguas groundwater model. The model was well received based on the information presented in this initial workshop. TAG will discuss the process for further peer review during a future meeting after the members have had a chance to digest the workshop materials and preliminary draft model report. At their request, the Contract Groundwater Manager met with the FCGMA s GSP consultant on January 22 to discuss various elements of the GSPs. Finance and Human Resources 47. The Accounting Supervisor attended a Laserfiche training conference to better assist with the document imaging integration into the new financial software. Laserfiche has the ability to store documents that can be accessed directly from the New World Financial Software system. 48. The Manager of Finance & Human Resources, General Manager, and Human Resources Coordinator attended a webinar regarding upcoming changes in payroll laws. 49. The following updates and modifications were implemented in the District s Safety Program Secured a new hazardous waste treatment permit. A treatment log and neutralization procedure have been implemented to comply with applicable hazardous waste law and new permit requirements. Employees were trained on the new procedures in January. Updated procedures for Contractor Safety to comply with Cal OSHA requirements for chlorine. Contractors working at either of Calleguas chlorine facilities are required to be briefed on relevant hazards and response actions to be followed in the event of an emergency. Engineering has added a new procedure and line item 11

29 to pre-construction meetings that includes having the Safety Officer conduct a briefing with the contractor at these meetings. Updated the Respirator Fit testing method to comply with Cal OSHA requirements for high hazard environments. A new fit testing machine has been purchased to assist with the new procedures. Updated the Fit Testing Procedure. Each employee is fit-tested to each respirator they wear. Many employees wear three different types of respirators. Updated the Hazardous Waste inspection checklist to include all required elements. 50. ACWA JPIA held a confined space training classes for the Engineering and Operations & Maintenance staff on January

30 December 31, 2017 Financial Statements F-1 FINANCE

31 Calleguas Municipal Water District Statement of Net Assets as of December 31, 2017 ASSETS 12/31/17 Current Assets: Cash & Investments $ 181,364,967 Accounts Receivable 17,603,846 Inventory 47,397,969 Restricted Current Assets Restricted Cash & Investments 5,841,896 Total Current Assets 252,208,678 Capital Assets: Capital Assets (Net of Accumulated Depreciation) 463,744,771 Total Capital Assets 463,744,771 Other Non-current Assets: Other LT Assets 30,000 Total other non-current assets 30,000 Total Assets $ 715,983,448 Deferred Outflows 7,502,991 Total Assets & Deferred Outflows $ 723,486,439 2/1/2018 Page 1

32 Calleguas Municipal Water District Statement of Net Assets as of December 31, 2017 LIABILITIES AND NET ASSETS 12/31/17 Current Liabilities: Accounts Payable $ 20,086,102 Interest Payable 4,235,396 Retention Payable 1,758,527 Deposits 57,698 Current portion of bonds payable 8,410,000 Total Current Liabilities 34,547,722 Long-Term Liabilities: Bonds payable, net of current portion 207,067,777 Compensated Absences 508,562 OPEB Liability 220,002 Pension Liability 7,978,753 Total long-term liabilities 215,775,094 Total Liabilities 250,322,816 Deferred Inflows 583,250 Total Liabilities & Deferred Inflows $ 250,906,066 Net Assets: Invested in capital assets, net of related debt 227,051,112 Restricted 11,776,765 Unrestricted 233,752,497 Total Net Assets 472,580,373 Total Liabilities and net assets $ 723,486,439 2/1/2018 Page 2

33 Calleguas Municipal Water District Comparison for Six Months of Budget Six Months of FY Budget Six Months Ended 12/31/17 $ Variance % Water Sales $ 60,672,665 $ 69,128,227 $ 8,455, % Other Water Revenues 37,728 (6,948) (44,676) (18.4%) Capacity Reservation Charge 3,235,990 3,235,746 (244) 100.0% Readiness to serve-purveyors 3,422,173 3,421,542 (631) 100.0% Recycled Water 32,359 50,123 17, % Pumping Power Revenue 419, ,285 (8,465) 98.0% Power Generation 372, ,458 50, % SMP Fees 100,162 67,319 (32,843) 67.2% Total Operating Revenues 68,292,827 76,729,753 8,436, % Cost of Water 45,677,931 52,030,568 (6,352,637) 113.9% Capacity Reservation Charge-MWD 962, ,200 (486) 100.1% Readiness to serve-mwd 3,108,281 3,084,726 23, % Recycled Water 24, , % Pumping Power 675, ,401 1, % Total Cost of Water 50,447,972 56,751,895 (6,303,923) 112.5% Salaries and benefits 4,757,644 4,459, , % Fuel and vehicle exp 75,000 90,741 (15,741) 121.0% Utilities 200, ,925 58, % Operations & Maintenance Supplies 329, ,292 (7,242) 102.2% Office Supplies 36,076 36,513 (437) 101.2% Outside services 971, , , % Consultants/Studies 753, , , % Permits, Leases and fees 106,382 91,390 14, % Travel & Training 56,788 44,119 12, % Memberships 138, ,971 5, % Insurance 201, ,577 52, % Legal 140,002 63,092 76, % Election Costs N/C Conservation 87,502 65,602 21, % Miscellaneous 0 1,102 (1,102) N/C Total Operating Administration Expenses 7,854,136 6,560,827 1,293, % Operating Income $ 9,990,719 $ 13,417,030 $ 3,426, % 2/1/2018 Page 3

34 Calleguas Municipal Water District Comparison for Six Months of Budget Six Months of FY Budget Six Months Ended 12/31/17 $ Variance % Operating Income $ 9,990,719 $ 13,417,030 $ 3,426, % Interest Income 900, ,688 (202,318) 77.5% Water standby charges 653, , , % Tax Revenue 3,450,000 4,384, , % Tax Collection, Bank & Bond Fees (259,450) (240,848) 18, % Capital construction charges N/C Other Income 29,498 83,088 53, % Interest and redemption expense (4,479,858) (4,372,317) 107, % Bond Premium/Discount Amortization 293, ,055 24, % Build America Bond Subsidy 723, ,769 10, % Total non-operating revenue/expenses 1,310,011 2,393,588 1,083, % Income before Capital, Contributions, & Depreciation 11,300,730 15,810,619 4,509, % Depreciation (6,715,004) (6,693,999) 21, % Capital Equipment > $5,000 (121,002) (142,579) (21,577) 117.8% Project Expense 0 (550,027) (550,027) N/C Gain/(Loss) on Sale of Capital Assets 0 22,556 22,556 N/C Grant/Capital Contribution Revenue N/C Capital Related Expenses (6,836,006) (7,364,049) (528,043) 107.7% Changes in Net Assets $ 4,464,724 $ 8,446,570 3,453,803 Net Assets, beginning of year 464,133,803 Net Assets, end of year $ 472,580,373 2/1/2018 Page 4

35 Calleguas Municipal Water District Operating Budget Transfers for the month of December 2017 Acct # Account Description Department Amount Ending Acct Budget Consulting Finance (20,000) 80, Equipment-Other Finance 20,000 20,000 Description Transfer funds for the purchase of an O&M mask fit test machine

36 Calleguas MWD Capital Project Schedule and Expenditures th Qtr F-2 Finance Approved Prior Project Remaining % Budget Current Estimated Phase Proj# Projects Budget Balance Oct Nov Dec Total Budget Spent Phase Completion Salinity Management Pipeline 508 SMP Phase 2D 14,226,000 9,561,463 1, ,564,028 4,661, % Post Construction R Reimb. From DWR Prop 84 (Drought) (1,875,000) (1,875,000) (1,875,000) 525 Camarillo SMP Discharge Station 103, , ,579 1, % On Hold TBD 534 Plastic Pipe Storage 1,490, ,356 4,567 8,492 4, , , % Construction Jun SMP Phase 3 223, , ,245 6, ,949 62, % Preliminary Design May SMP Phase 4 500,000 86,588 33,998 10, , , % Preliminary Design Jul-2018 Emergency Water Supply Reliability Salinity Management Pipeline Total 14,667,000 8,495,755 40,675 33,478 11,379 8,581, LVMWD-CMWD Interconnection 384, ,837 62,719 11,379 26, ,822 1, % Preliminary Design Jan Wellfield Emergency Generators 29,900,000 2,117, ,099 16,498 19,615 2,403,384 27,496, % Construction Apr Grandsen Pump Station Phase 2 34,557,000 21,041,736 1,244,934 2,716, ,404 25,904,878 8,652, % Construction Jun Wellfield Treatment Plant 1,639,000 1,319,556 11,488 4,179 5,062 1,340, , % Preliminary Design Jul WF Perimeter Monitoring Probes 450, ,090 2, , ,752 90, % Implementation Dec ASR Monitoring Wells 2,900, ,952 1,955 12,956 17,900 1,007,763 1,892, % Implementation Jul-2020 R Reimb. From DWR Prop 84 (108,000) (108,000) (108,000) 528 ASR Groundwater Model 1,000, ,073 7,868 34,980 34, , , % Implementation Dec Crestview-Calleguas Interconnection 205, ,368 8,341 13,979 7, ,399 37, % Design May Calleguas-Ventura Interconnection 250,000 71, , , , % Preliminary Design Aug Simi Valley Reservoir 27, ,560 10,875 12,435 14, % Preliminary Design Feb-2018 Emergency Water Supply Reliability Total 71,204,000 26,863,553 1,590,358 2,835,488 1,028,741 32,318,140 Page 1 of 3 2/1/2018

37 Calleguas MWD Capital Project Schedule and Expenditures th Qtr F-2 Finance Approved Prior Project Remaining % Budget Current Estimated Phase Proj# Projects Budget Balance Oct Nov Dec Total Budget Spent Phase Completion Improvements to Existing Facilities 442 OSR & LP Feeder Impr/Santa Rosa Hydro/Misc Valve Impr 3,300,000 1,352,069 21,527 51,796 15,602 1,440,994 1,859, % Design Oct-2018 Improvements to Existing Facilities Total 3,300,000 1,352,069 21,527 51,796 15,602 1,440,994 Rehabilitation, Replacement & Relocation 489 PLC Replacement Project 500, , ,258 2, ,784 94, % Pilot Testing Mar Network Center Upgrades 847, ,057 72,925 30,562 76, , , % Implementation (Phase 2b) Apr Turnout PC Upgrade 450, ,721 9,402 8,633 6, , , % Pilot Testing Apr Anode Well Replacement 925, ,835 8,575 5,718 2, , , % Construction Apr Moorpark Feeder Unit 2 Strengthening 1,174, ,268 58,794 8,537 67, , , % Construction May Dam, Dike 1, SV Reservoir Erosion Repair & Drainage Improve 140,000 30, ,166 1,617 34, , % Design Mar-2018 Rehabilitation, Replacement & Relocation Total 4,036,000 1,678, ,931 60, ,268 2,046,598 Page 2 of 3 2/1/2018

38 Calleguas MWD Capital Project Schedule and Expenditures th Qtr F-2 Finance Approved Prior Project Remaining % Budget Current Estimated Phase Proj# Projects Budget Balance Oct Nov Dec Total Budget Spent Phase Completion Unplanned System Repairs 563 Camrosa Discharge Station Valve Emergency Repair 310,000 97, , ,775 8, % Post Construction 567 Unplanned Emergency Repairs ,165, ,165, % Unplanned 568 Unplanned Pump Repairs , , % Unplanned 570 TOD Pump Station Settlement Repair 100, ,059 2,453 11,512 88, % Unplanned Unplanned System Repairs Total 1,875,000 97, ,782 3, ,287 GRAND TOTAL 95,082,000 38,487,451 1,804,199 3,193,418 1,215,238 44,700,306 50,381, % Page 3 of 3 2/1/2018

39 F-3a FINANCE Mr. Dan Smith January 17, 2018 Manager of Finance Calleguas Municipal Water District 2100 Olsen Road Thousand Oaks, CA Dear Dan, We are pleased to enclose the fourth quarter 2017 Review for the Calleguas Municipal Water District Short Duration portfolio managed by Wells Capital Management. We have also ed you an electronic copy of the Q book to facilitate your review. As we enter the New Year, we offer our observations and thoughts about the economy and fixed income markets for the final quarter of last year and for 2018: Looking back on 2017, we note that: The Fed raised rates three times in 2017, ending the year with the benchmark lending rate in a range from 1.25% to 1.50%. The big story in the Treasury market was the changing shape of the yield curve. Over the course of the year, the yield curve bear flattened (shorter-term interest rates increasing at a faster pace than longer-term rates), with the spread between 2-year and 5-year Treasuries tightening from a high of 76.3 basis points in March to end the year at 32 basis points. An overweight to credit and strong performance from the credit markets was a driver of positive excess returns throughout For the year, the ICE BofAML 1-3 Year US Corporate Index outperformed duration-matched treasuries by 1.49%, while the ICE BofAML 1-5 Corporate Index outperformed by 2.03%. The asset-backed securities market was active and performed well all year, with the 1-3 Year ABS Index returning 74 basis points of excess return in New-issue supply increased by over 16%, with the majority of the increase in issuance coming from the auto and credit card sectors. Late in 2017, the Fed began the process of decreasing the size of its balance sheet, by allowing $10 billion per month of principal payments to not be reinvested, divided between $6 billion of Treasuries and $4 billion of Agency MBS. Current market expectations call for three rate hikes in 2018, commencing with the Fed s March 2018 meeting (WellsCap s base case is for at least two more rate hikes). As noted above, the Fed has commenced the closing phase of a decade-long process of monetary stimulus and has begun its balance sheet normalization program by gradually reducing its holdings of both U.S. Treasury and Agency MBS. In 2018, the initial $10 billion in roll-off will increase by $10 billion every three months until they reach a maximum of $50 billion per month. Wells Capital Management

40 As we enter 2018, we summarize our economic big six as follows: Growth: GDP growth at or above trend Employment: Labor market continues to tighten Inflation: Core inflation low and fairly stable Monetary: Policy rate normalization proceeds on schedule Fiscal: Tax reform slipped tailwind for GDP, corporate profits International: Synchronized global growth Year Treasury Yields Yield /31/2012 3/31/2013 6/30/2013 9/30/ /31/2013 3/31/2014 6/30/2014 9/30/ /31/2014 3/31/2015 6/30/2015 9/30/ /31/2015 3/31/2016 6/30/2016 9/30/ /31/2016 3/31/2017 6/30/2017 9/30/ /31/2017 CMWD Portfolio: In the fourth quarter of 2017, the return for the Blended Treasury Index (40% Merrill Lynch 90-day US Treasury Bill Index and 60% Merrill Lynch 1-3 Year Treasury Index) was -0.04% versus CMWD s total return of 0.05%. For the trailing 12-month period, the benchmark returned 0.60% against the combined portfolio return of 0.97%. A more detailed summary of the portfolio performance versus the benchmark is part of the book accompanying this letter. Wells Capital Management

41 In addition to the performance and economic summary, I d like to take the opportunity to introduce my longtime colleague Lyle Defenbaugh as well. Lyle has been a key asset at WellsCap, serving as a longtime Client Service Director for California municipal agencies, and he will be partnering with me to ensure that CVWD s investment and compliance standards continue to be met with the highest quality of client service. I hope to bring Lyle with me to the next onsite meeting in order for you to meet him in person. We continue to manage the Calleguas Municipal Water District s short-duration portfolio conservatively to meet the District s objective of preservation of principal. We are maintaining adequate liquidity to cover the District s expected cash flows and the portfolios are invested in compliance with the District s Investment Policy. We appreciate the opportunity to work with the District in order to meet your investment objectives and welcome any questions that you or the Board may have regarding this material. Warm Regards, Keith Khorey Client Relations Director, Balance Sheet Assets Wells Capital Management Wells Capital Management

42 F-3b FINANCE Wells Capital Management Short Duration Calleguas Municipal Water District Quarter Ending December 31, 2017 Presented By: Lyle Defenbaugh Client Relations Director Keith Khorey Client Relations Director Wells Fargo Asset Management is a trade name used by the asset management businesses of Wells Fargo & Company.

43 Table of contents I. Performance summary II. Portfolio review III. Market review IV. Investment policy V. Client service team WELLS CAPITAL MANAGEMENT 1

44 II. Performance summary WELLS CAPITAL MANAGEMENT 2

45 Performance summary As of 12/31/2017 Calleguas Municipal Water District - General Fund 3 month YTD 1 year 2 year 3 year 5 year 7 year 10 year Since Inception* 0.05% 0.97% 0.97% 0.96% 0.84% 0.69% 0.72% 1.35% 1.90% Calleguas Blended Benchmark** -0.04% 0.60% 0.60% 0.63% 0.54% 0.45% 0.50% 1.02% 1.68% 2.00% Calleguas Muncipial Water District - General Fund Calleguas Blended Benchmark* 1.00% 0.00% -1.00% 3 month YTD 1 year 2 year 3 year 5 year 7 year 10 year Since Inception* *Inception date is 6/30/2003 **40% Merrill Lynch 90 day USTB Index and 60% Merrill Lynch 1-3 year Treasury Index Source: Clearwater WELLS CAPITAL MANAGEMENT 3

46 II. Portfolio review WELLS CAPITAL MANAGEMENT 4

47 Portfolio summary General Fund Account Number As of 12/31/17 Portfolio Statistics Liquidation Value $149,295,427 Average Credit Quality Aa1 Unrealized Gain/(Loss) ($749,255) Yield to Maturity at Purchase 1.42% Yield to Maturity at Market 1.86% Average Days to Maturity 409 days Effective Duration 1.10 Credit Rating % A-1/P-1 1 Aaa 69 Aa 17 A 13 Baa 0 Money Market Fund 0 Sector Distribution Effective Maturity Distribution ABS, 15% 40% Agencies, 43% Muni, 6% CP, 1% Money Mkt Fund, 0% Treasuries, 9% 30% 20% 14% 33% 21% 19% 13% Corporates, 26% 10% 0% <90 90 days- 1 year years years 2-3 years WELLS CAPITAL MANAGEMENT 5

48 Portfolio summary General Fund Account Number For the Period 10/01/17 12/31/17 Beginning Liquidation Value $ 149,257,684 Ending Liquidation Value $ 149,295,427 Contributions $ 0 Withdrawals $ 0 4 th Quarter Return 0.05% Returns are gross of fees WELLS CAPITAL MANAGEMENT 6

49 III. Market review WELLS CAPITAL MANAGEMENT 7

50 Short duration review December 31, 2017 Treasury Yield Curve 4.00% 3.00% 3/31/2017 6/30/2017 9/30/ /31/2017 Yield 2.00% 1.00% 0.00% Years to Maturity Source: Bloomberg Barclays Treasury Yield Curve 12/31/2016 3/31/2017 6/30/2017 9/30/ /31/ Month 0.50% 0.76% 1.02% 1.05% 1.39% 6 Month 0.62% 0.90% 1.14% 1.19% 1.53% 1 Year 0.81% 1.03% 1.23% 1.30% 1.73% 2 Year 1.20% 1.26% 1.38% 1.48% 1.89% 5 Year 1.92% 1.93% 1.88% 1.93% 2.19% 10 Year 2.43% 2.39% 2.30% 2.33% 2.41% 30 Year 3.05% 3.02% 2.84% 2.86% 2.74% WELLS CAPITAL MANAGEMENT 8

51 Short duration review December 31, % Total Return by Maturity 1Q Q Q Q 2017 Total Return by Sector 1Q Q Q Q % 4% Total Return 3% 2% 1% Total Return 0.40% 0.00% 0% -1% Maturity (Yrs) -0.40% Agency (1-3 yrs) Corp (1-3 yrs) Sector ABS (0-3 yrs) Tsy (1-3 yrs) Total Return by Maturity 4Q Q Q Q Q % 0.16% 0.14% 0.25% 0.01% % 0.23% 0.12% 0.18% -0.34% % 0.46% 0.72% 0.25% -0.71% % 0.78% 1.29% 0.27% -0.28% % 1.27% 4.21% 0.32% 3.00% Total Return by Sector 4Q Q Q Q Q 2017 Agency (1-3 yrs) -0.35% 0.31% 0.26% 0.29% -0.19% Corporate (1-3 yrs) -0.21% 0.70% 0.60% 0.61% -0.02% Asset Backed (0-3 yrs) -0.02% 0.47% 0.46% 0.43% 0.18% Treasury (1-3 yrs) -0.43% 0.26% 0.18% 0.24% -0.25% Source: Bloomberg Barclays, ICE BofAML WELLS CAPITAL MANAGEMENT 9

52 IV. Investment policy WELLS CAPITAL MANAGEMENT 10

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