S A W P A. SANTA ANA WATERSHED PROJECT AUTHORITY Sterling Avenue, Riverside, California (951)

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1 S A W P A SANTA ANA WATERSHED PROJECT AUTHORITY Sterling Avenue, Riverside, California (951) COMMISSION WORKSHOP/MEETING TUESDAY, OCTOBER 2, :30 A.M. AGENDA 1. CALL TO ORDER/PLEDGE OF ALLEGIANCE (Terry Catlin, Chair) 2. PUBLIC COMMENTS Members of the public may address the Commission on any item that is within the jurisdiction of the Commission; however, no action may be taken on any item not appearing on the agenda unless the action is otherwise authorized by Subdivision (b) Section of the Government Code. 3. WORKSHOP DISCUSSION AGENDA A. PRESENTATION OF THE 2012 RIVERSIDE COUNTY/SAN BERNARDINO COUNTY COMMUNITY INDICATORS REPORT Presenter: Pete Aguilar, Mayor of Redlands Recommendation: Receive and file. 4. NEW BUSINESS A. BRINE LINE REACH IV-E IMPROVEMENTS TO SUPPORT LINE CLEANING OPERATIONS DIRECT STAFF TO FILE THE NOTICE OF COMPLETION (CM#8682)...3 Presenter: Carlos Quintero Recommendation: Accept the Reach IV-E Improvements project as complete, and direct staff to file a Notice of Completion with the San Bernardino County Clerk s Office. B. OWOW 2.0 ELIGIBILITY AND RANKING PROCESS SUGGESTED RATIFICATION (CM#8683)...5 Presenter: Jeff Beehler Recommendation: Ratify the recommended clarifications to the project ranking criteria for the second round of Proposition 84 funding criteria. C. OWOW 2.0 PROJECT APPLICATIONS AND FUNDING REQUEST STATUS Presenter: Jeff Beehler Recommendation: Receive and file. D. VALLEY DISTRICT S REQUEST TO PURCHASE TREATMENT AND DISPOSAL CAPACITY RIGHT FOR USE BY YVWD (CM#8669)...7 Presenter: Rich Haller Recommendation: Approve Valley District s request to purchase 215,000 gpd of treatment and disposal capacity right for a purchase price of $977,845 to be used by YVWD. 1

2 5. OLD BUSINESS None 6. CONSENT CALENDAR All matters listed under the Consent Calendar are considered to be routine and non-controversial and will be acted upon by the Commission by one motion in the form listed below. There will be no separate discussion on these items prior to the time the Commission votes, unless any Commission members, staff, or the public request specific items be discussed and/or removed from the Consent Calendar for separate action. A. APPROVAL OF THE MINUTES FROM THE MEETING HELD ON Recommendation: Approve as mailed. 7. CLOSED SESSION A. PURSUANT TO GOVERNMENT CODE SECTION (a) CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION Arbitration with OCSD Castle and Cook, Case No. RIC B. PURSUANT TO GOVERNMENT CODE SECTION (b) CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Significant Exposure to Litigation One Potential Case 8. ADJOURNMENT Any person with a disability who requires accommodation in order to participate in this meeting should telephone Commission Secretary Patti Bonawitz at (951) , at least 48 hours prior to the meeting in order to make a request for a disability-related modification or accommodation. PLEASE NOTE: Materials related to an item on this agenda submitted to the Commission after distribution of the agenda packet are available for public inspection in the Authority s office located at Sterling Avenue, Riverside, during normal business hours. Also, such documents are available on the Authority s Website at subject to staff s ability to post documents before the meeting. Declaration of Posting I, Patti Bonawitz, Clerk of the Board of the Santa Ana Watershed Project Authority certify that a copy of this agenda has been posted in the Agency s office at Sterling Avenue, Riverside, California by 5:30 p.m. on Wednesday, September 26, Patti Bonawitz October :30 am PA 21 Committee Meeting :30 am Commission Meeting November :30 am Commission Workshop :30 am PA 21 Committee Meeting :30 am Commission Meeting December DARK(?) Upcoming Commission Meetings/Events 2

3 COMMISSION MEMORANDUM NO DATE: October 2, 2012 TO: SUBJECT: PREPARED BY: Commission Reach IV-E Improvements Notice of Completion Carlos Quintero, Project Manager RECOMMENDATION It is recommended that the Commission accept the Reach IV-E Improvements project as complete, and direct staff to file a Notice of Completion with the San Bernardino County Clerk s Office. DISCUSSION On February 21, 2012, the Commission awarded a contract to Caliagua, Inc. to perform the Reach IV-E improvements to support line cleaning operations. The scope included four temporary drying beds that were constructed on the Colton Power Plant and San Bernardino Flood Control District property, construction of two draining locations (blow-off valves), and site restoration. All work, with the exception of site restoration was completed on April 2, The site restoration work was completed on August 31, Between April 16 and April 23, 2012, cleaned approximately 8,000 feet of 36-inch diameter reinforced concrete pipe installed in mid Due to its hydraulic design, this section of pipe is pressurized and it required draining prior to opening sealed maintenance access structures. All the brine and solids removed from this section of the pipe were held temporarily in the drying beds to allow evaporation of the brine and removal of the remaining solids. Approximately 375 tons of solids were removed from this section of the Brine Line. BUDGET RESOURCES Funds to prepare and file the Notice of Completion are included in the FY Budget under Fund No. 240, Brine Line Enterprise. CQ:dm Attachment: 1. Notice of Completion CM#8682 Rch 4E Improvements NOC 3

4 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO NAME Santa Ana Watershed Project Authority STREET ADDRESS CITY STATE Riverside CA ZIP Sterling Avenue No fee per gov t code Space above this line for Recorder s use NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described. 2. The full name of the owner is Santa Ana Watershed Project Authority. 3. The full address of the owner is Sterling Avenue, Riverside, CA The nature of the interest or estate of the owner is: In fee. Fee (If other than Fee, strike In fee and insert, for example, purchaser under contract of purchase, or Lessee ) 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAMES ADDRESSES None 6. The full names and full addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to: NAMES ADDRESSES None 7. A work of improvement on the property hereinafter described was completed on August 31, The work done was: _Reach IV-E Improvements 8. The names of the contractor, if any, for such work of improvement was Caliagua, Inc. February 27, 2012 (If no contractor for work of improvement as a whole, insert None ) (Date of Contract) 9. The property on which said work of improvement was completed is in the City of Colton Counties of San Bernardino, State of CA, and is described as follows: Construction of four temporary drying beds, construction of two blow-off valves, including one manhole, and site restoration. 10. The street address of said property is 2040 W. Agua Mansa Road, Colton, CA (If no street address has been officially assigned, insert none.) Dated Santa Ana Watershed Project Authority (Signature of Owner or corporate officer of Owner named in paragraph 2, or his agent) VERIFICATION I, the undersigned, say: I am the Project Manager, the Declarant of the foregoing Notice of Completion; (President of, Manager of, Partner of, Owner of, etc.) I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on, 2012 at Riverside, CA. (Personal signature of the individual who is swearing that the contents of the Notice of Completion are true) WOLCOTTS FORMS, INC. *67775-ABBBEc FORM 1114 Rev

5 COMMISSION MEMORANDUM NO DATE: October 2, 2012 TO: SUBJECT: PREPARED BY: Commission Ratification of Additional OWOW Round 2.0 Project Ranking Criteria Jeff Beehler, Program Manager RECOMMENDATION It is recommended that the Commission ratify the recommended clarifications to the project ranking criteria for the second round of Proposition 84 funding criteria. DISCUSSION In June, staff presented to the Commission some recommendations for project ranking criteria and a process framework. The framework for project selection included four gates or eligibility criteria. They were: 1) the project must be consistent with DWR requirements (statutory); 2) the project must show evidence of collaboration between entities; 3) the applicant must be committed to a minimum cost match, and 4) a commitment to complete the project in a timely manner. Also included in the framework was a 10% set-aside for projects benefitting disadvantaged communities (DAC s). Criteria for ranking projects considered to be eligible based on the eligibility criteria included: 1) improvement in water reliability and reduction in dependence on imported water; 2) improvements in water quality and salt balance; 3) management of flood waters through preservation and restoration of natural hydrology; 4) reduction of greenhouse gas emissions from water management activities, and 5) cost effectiveness. In that meeting, the Commission also approved the following additions to the ranking process: 1) If approvable by DWR, a funding set aside should be established to assist those wishing to adopt conservation-based water rates, and 2) Water retailers meeting the Governor s 20x2020 water efficiency goals at the time of application receive additional points in project scoring. The Steering Committee will consider the following staff recommendations at its September 27, 2012 meeting to implement their recommendation and the June meeting Commission action: 1) That a funding set aside of 5% of available grant funding be made available to support agencies in the development of sustainable water rates, and 2) Grant a 5% total project score bonus to project proponents who are water retailers that have met SBX goals at the time of application. In Round One of the OWOW funding process, the Steering Committee did not set a limit on the number of projects eligible for funding by project proponents, nor did it set a cap on the amount of funding requested by each individual project to ensure flexibility in allocating funding. Staff is making a similar recommendation to the Steering Committee. 5

6 CM#8683 October 2, 2012 Page 2 Staff will summarize the September 27 Steering Committee recommendations at the Commission Workshop/Meeting. RESOURCE IMPACTS These efforts are part of the One Water One Watershed planning process, and are budgeted for in FY and JB:dm CM#8683 OWOW Criteria 6

7 COMMISSION MEMORANDUM NO DATE: October 2, 2012 TO: SUBJECT: PREPARED BY: Commission Valley District Request to Purchase 215,000 gpd of Treatment and Disposal Capacity Right for use by YVWD Rich Haller, Executive Manager of Engineering and Operations RECOMMENDATION It is recommended that the Commission approve the request of San Bernardino Valley Municipal Water District (Valley District) to purchase 215,000 gpd of treatment and disposal capacity right for a purchase price of $977,845 to be used by Yucaipa Valley Water District (YVWD), and Valley District s assignment of 80,000 gpd of capacity right already owned by Valley District to YVWD. DISCUSSION Inland Empire Brine Line treatment and disposal capacity right is defined by maximum flow (in gallons per day, gpd) and wastewater quality (milligrams per liter, mg/l BOD and TSS). YVWD has purchased pipeline capacity right from Valley District, and desires to purchase treatment and disposal capacity right for brine wastewater (20 mg/l BOD, 18 mg/l TSS). currently holds 215,000 gpd of treatment and disposal capacity right, which is available for sale to the member agencies. The purchase price is based upon the amount paid by when purchased from OCSD in Valley District currently owns 80,000 gpd of treatment and disposal capacity right and seeks to assign this capacity right to YVWD. RESOURCE IMPACTS Payments received will be placed in the OCSD Future Capacity Reserve Account to fund additional purchases of treatment and disposal capacity from OCSD. RH:dm Attachments: 1. YVWD 8/6/2012 Letter 2. Agreement between and Valley District CM#8669 Valley District Treatment Capacity Purchase for YVWD 7

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11 AGREEMENT BETWEEN SANTA ANA WATERSHED PROJECT AUTHORITY AND SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT FOR TREATMENT AND DISPOSAL SERVICE THIS AGREEMENT is made this 2nd day of October, 2012, between SANTA ANA WATERSHED PROJECT AUTHORITY ( ) and SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT ( VALLEY DISTRICT ), a municipal water district. and VALLEY DISTRICT are sometimes individually and collectively referred to herein as Party and Parties respectively. RECITALS A. The Inland Empire Brine Line (Brine Line), formerly known as the Santa Ana Regional Interceptor ( SARI ) is a wastewater pipeline conveyance system and was constructed for the transmission of non-reclaimable wastewater. The pipeline extends from the Orange County Sanitation District s ( OCSD ) treatment plant in Fountain Valley into the Upper Santa Ana River Watershed. owns the portion of the Brine Line pipeline upstream from the Orange County line and owns a 30 million gallons per day ( mgd ) capacity right in the Brine Line pipeline downstream from the Orange County line. B. also owns a treatment and disposal capacity right of up to 30 mgd in certain wastewater treatment and disposal facilities owned by OCSD. This treatment and disposal right, and the pipeline capacity right referred to in Recital A above, are subject to certain payment obligations and other terms and conditions including a Treatment and Disposal Capacity Agreement with OCSD, dated July 24, 1996 ( 1996 Agreement ). C. To accommodate the discharge of Industrial Wastewater (aka non-reclaimable wastewater) from eligible dischargers within VALLEY DISTRICT s boundaries and to maximize the removal of salts from the Upper Santa Ana River Watershed, VALLEY DISTRICT desires to purchase additional Brine Line system treatment and disposal rights from. D. It is the purpose of this Agreement to provide the terms and conditions under which VALLEY DISTRICT will acquire from such additional Brine Line treatment and disposal rights for the discharge of Industrial Wastewater, and to define VALLEY DISTRICT s rights and responsibilities related to such treatment and disposal rights. COVENANTS Based on the foregoing facts, and in consideration of the mutual covenants of the Parties, it is agreed as follows: 1. Definitions. As used in this Agreement, the following terms have the following meanings: (a) 1996 Agreement: the Wastewater Treatment and Disposal Agreement, dated July 24, 1996, between OCSD and, as referenced in Recital B above. (b) Disposal Right: a right by VALLEY DISTRICT to deliver, and an obligation of to accept and to provide for delivery, treatment and disposal in the Brine Line System, of a specified flow of Industrial Wastewater (aka non-reclaimable wastewater). The amount of this Disposal Right shall be expressed in millions of gallons per day (mgd), and shall be equal to 11

12 the maximum flow permitted to occur in any consecutive twenty-four hour period, from VALLEY DISTRICT through s mainline master meters, or meters used to measure the flow from each discrete industrial user, provided the maximum flow permitted to occur in any one hour shall not exceed 1.0 x 1/24 of the capacity right without prior written approval from. (c) Peaking Flows: a discharge of Industrial Wastewater into the Brine Line system by VALLEY DISTRICT which exceeds the maximum flow permitted for disposal service purchased as defined under Disposal Right. (d) Industrial Wastewater: Non-reclaimable wastewater with elevated concentrations of salts, including institutional liquid wastes, which meet the quality requirements of this Agreement, ordinance and resolution, and any successors thereto, and all pertinent rules and regulations governing the discharge of non-reclaimable wastewater. (e) Brine Line System: the Brine Line System shall include the following facilities: (i) A 30 mgd pipeline capacity right in the pipeline from OCSD treatment plant(s) to the Orange County line. (ii) Reaches IV, IV-A, IV-B, IV-D, IV-E and V of the Brine Line pipeline and any Reaches constructed hereafter. Such Reaches are owned or will be owned entirely by. (iii) Treatment and disposal rights acquired by from OCSD. Such rights include those rights assigned to by the Chino Basin Municipal Water District pursuant to an April 12, 1972 agreement. Such rights shall also include the use of such supplemental treatment facilities as may be required and hereafter constructed. (f) Wastewater Strength: the concentration and total loading of Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) expressed in milligrams per liter (mg/l) for concentration and pounds per day (lbs/day) for total loading. 2. Purchase of Disposal Right. VALLEY DISTRICT does hereby acquire a Disposal Right of mgd for the delivery, treatment and disposal of Industrial Wastewater to the Brine Line System. Such Disposal Right is in addition to all pipeline and treatment and disposal capacity rights previously acquired by VALLEY DISTRICT. 3. Purchase Price. Subject to the additional costs required under Sections 4, 5, 6 and 7, the purchase price of the Disposal Right set forth in Section 2 above shall be $977,845 based upon a wastewater strength of 20 mg/l BOD and 18 mg/l of TSS, also expressed as 36 lbs/day BOD and 33 lbs/day TSS. The purchase price is the treatment and disposal capital charge only, as determined by the Commission. The purchase price is based upon the OCSD pre-payment of repair, rehabilitation, replacement purchase cost. VALLEY DISTRICT will be utilizing existing pipeline capacity. This Agreement shall not be effective until such time as payment of the Purchase Price has been made to. Transfer or assignment of this Disposal Right to another discharger is subject to and OCSD written approval and additional charge if for other than brine only discharges MGD x $3.86/gpd $ 829,900 Flow 36 lbs/day (20 mg/l) x $2,631/lbs/day $ 94, lbs/day (18 mg/l) x $1,613/lbs/day $ 53,229 $ 977,

13 4. Connections. In the exercise of its Disposal Right, VALLEY DISTRICT shall be entitled to deliver Industrial Wastewater to any points in the Brine Line System provided VALLEY DISTRICT pays the cost of constructing facilities to connect the industrial user or users to the Brine Line System. VALLEY DISTRICT shall be responsible for the cost of whatever facilities may be required to make each such connection to the Brine Line System, including a meter to measure the wastewater flows to each such connections; provided, however, that in the event a meter is determined to be inappropriate in a specific situation, VALLEY DISTRICT and may agree on an alternate method of measuring flow. The design of all connection facilities shall be approved by prior to construction or installation. Once a connection has been made, the connection facilities shall belong to, and shall be responsible for their operation, maintenance, repair and replacement including monitoring of both the quantity and quality of Industrial Wastewater. By separate agreement, the Parties may decide to delegate these responsibilities by contract to VALLEY DISTRICT. 5. Operation, Repair, Maintenance and Replacement Costs or User Charges. In addition to the payments required hereunder for the purchase of its Disposal Right, VALLEY DISTRICT shall pay to the operation, repair, maintenance and replacement costs incurred by for the delivery, treatment and disposal of the Industrial Wastewater discharged hereunder, sometimes referred to by as user charges, as such costs may be determined from time-to-time by the Commission. Such operation, repair and maintenance charges shall include OCSD s treatment and disposals costs, OCSD s operations, repair and maintenance costs, s share of OCSD s Capital Improvement Program, s operations, repair and maintenance costs, Brine Line replacement costs, and other capital improvements, administration and overhead costs and any other costs approved by the Commission. Payment of such operation, maintenance and replacement costs or user charges shall be made by VALLEY DISTRICT within 30 days from the date of receipt by VALLEY DISTRICT of an invoice from. As stated in Section No. 1, peaking flows are not included in the Disposal Right provided for in this Agreement. However, upon prior written notice provided to by VALLEY DISTRICT, peaking flows above the nominal capacity referenced in Section 2 above must be purchased at a rate to be set by the Commission provided such additional flow capacity is available to accommodate such peaking flows above the nominal capacity. The rate to be paid for such peaking flows may include the additional capital costs for the modification of existing facilities or for the construction of new facilities in order to accommodate such peaking flows. Failure to provide such prior written notice of peaking flows above the nominal capacity may result in fines and penalties assessed against VALLEY DISTRICT as provided in s rate resolution and Ordinance No. 6, and any successors thereto, and may include termination of service as determined by in its sole discretion. 6. Disposal Rights-Related Fixed Costs. VALLEY DISTRICT shall also pay to its pro-rated share of any annual capital costs replacement charges imposed by OCSD or the Commission, to the extent that such charges have not already been included as part of s user charges referenced in Section 5 above. Payment of these Disposal Rights-related fixed costs shall be made by VALLEY DISTRICT within 30 days from the date of receipt by VALLEY DISTRICT of an invoice from. 7. Supplemental Treatment Costs. The OCSD agreement obligates to continue to participate in the construction of all future supplemental treatment facilities on a pro-rated basis. Therefore, VALLEY DISTRICT shall hereafter pay a pro-rated share of the future OCSD costs incurred by for any additional supplemental treatment facilities required for the Disposal Right purchased hereunder. Payment of the supplemental treatment costs related fixed costs shall be made by VALLEY DISTRICT within 30 days from the date of receipt by VALLEY DISTRICT of an invoice from. 3 13

14 8. Quality Standards. The quality of the Industrial Wastewater discharged by VALLEY DISTRICT pursuant to this Agreement shall not cause the violation of the standards required under the OCSD agreement, OCSD s ordinance, s ordinances and resolutions, and any successors thereto, regulating the use and availability of the Brine Line System. 9. Wastewater Discharge Permit. This Agreement shall not become effective until has issued a Wastewater Discharge Permit under its Ordinance No. 6, and any successor thereto, for the discharge of Industrial Wastewater into the Brine Line System. VALLEY DISTRICT shall have the right, at its sole cost and expense, to transfer and reallocate from time-to-time all or part of this Disposal Right among other industrial discharges within its boundaries; provided, however, that any such future discharger shall also first obtain a Wastewater Discharge Permit from. 10. Assignment. This Agreement shall not be assigned by VALLEY DISTRICT without the prior written consent of. However, this provision shall not limit the right of VALLEY DISTRICT to allocate its capacity right among users within its boundaries and to make appropriate agreements in connection therewith. 11. Succession. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties. IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the day and year first above written. SANTA ANA WATERSHED PROJECT AUTHORITY By Its SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT By Its 4 14

15 Commission Meeting Minutes September 18, 2012 COMMISSION MEMBERS PRESENT Terry Catlin, Chair Phil Anthony Don Galleano Dave Slawson George Aguilar OTHERS PRESENT Don Lee Paul Rugge Greg Woodside Robert Ennis P. Ravi Ravishanker Celeste Cantú Larry McKenney Rich Haller Karen Williams Mark Norton Dean Unger David Ruhl Carlos Quintero Marie Jauregui Patti Bonawitz REPRESENTING Inland Empire Utilities Agency Orange County Water District Western Municipal Water District Eastern Municipal Water District San Bernardino Valley MWD Tetra Tech Western Municipal Water District Orange County Water District Orange County Water District Eastern Municipal Water District The Commission Meeting of the Santa Ana Watershed Project Authority was called to order at 9:35 a.m. by Chair Terry Catlin at the Santa Ana Watershed Project Authority Office, Sterling Avenue, Riverside, CA Chair Catlin led the flag salute. Chair Catlin called for public comments; however, no comments were received. NEW BUSINESS PROPOSITION 84 PROJECT AGREEMENT TEMPLATE MODIFICATION (CM#8678) Marie Jauregui stated that the DWR Proposition 84 template provides no definition for the term useful life ; however, the Proposition 50 template did. She requested authorization to change the language in the Proposition 84 Agreement template to read: The useful life of any constructed portions of this project or any component thereof begins upon construction and continues until fifty (50) years for pipelines and structures, and twenty (20) years for all else. Discussion briefly ensued regarding the need for this change, i.e., under Propositions 50 and 84, staff now can entertain not only projects, but programs as well, and the impact of staff time to implement this change (minor and it is within budget). Upon motion by Commissioner Anthony, seconded by Alternate Commissioner Slawson, the motion unanimously carried: MOVED, approval and directed staff to modify the Proposition 84 project Agreement template to reflect the definition of useful life from Proposition 50 as follows: The useful life of any constructed portions of this project or any component thereof begins upon construction and continues until fifty (50) years for pipelines and structures, and twenty (20) years for all else. 1 15

16 BRINE LINE EVALUATION OF MAINTENANCE AND REPAIR ACTIVITIES AND ALLOCATION OF COSTS (CM#8668) Rich Haller reviewed the scope of work, the purpose of the evaluation, the activities to date including the five workshops conducted, and the nine recommendations that were developed as a result of those workshops. The nine recommendations are: 1. Goals and Policies the existing goals and policies contained in the SSMP and the Brine Line Rate Resolution No are adequate and do not require revision at this time. 2. Maintenance and repair tasks identified in the SSMP are adequate. However, special focus is required to maximize the reliability of Reach V and Reach IV-B Upper (see Item Nos. 6 and 7, respectively). 3. Recommend that award right-of-way maintenance and meter maintenance service contracts based on the results of an RFP process. 4. Add a third O&M field staff position to perform all maintenance and repair activities not requiring expensive specialized equipment. 5. Establish a maintenance and repair contract with EMWD (approved by the Commission July 17, 2012). 6. The reliability of Reach V is a high priority. will investigate the sudden failure of the Reach V pipeline near Cabot Road on Temescal Canyon Road. 7. The reliability of Reach IV-B Upper is a high priority. The addition of eight access points and pipeline realignment of approximately 275 feet are required to provide line cleaning access to the entire length of the pipeline. 8. Account for costs by pipeline Reach (IV, IV-A Lower, IV-A Upper, IV-B Lower, IV-B Upper, IV-D, IV-E, and V). 9. Evaluate the possible sale of -owned property on Jurupa Road, City of Jurupa Valley (Riverside County). He also requested the Commission s authorization to create a third O&M field staff position (Brine Line Operator), which would not impact the current budget. There are several functions including confined space entry that require three field people. Discussion ensued regarding funding and activities for this new position (i.e., self-perform specific activities budgeted for in contracting services and take funds from the contracting services category to fund the position). On September 11, 2012, an expert panel evaluated Reach V and the out-of-round PVC pipe found at Cabot Road (SSO location), resulting in several recommendations. Also reviewed was Reach IV-B Upper, and recommendations were made to add eight access points and eliminate four horizontal bends by realigning approximately 400 feet of pipe. Bids for that project work are due October 9, 2012 at 10 a.m. EMWD s Ravi Ravishanker complimented Rich Haller on a wonderful job. He did a very thorough and complete job, bringing in the consultant and coming to the conclusion that he did. Celeste Cantú also thanked the member agencies for their work. Upon motion by Commissioner Anthony, seconded by Commissioner Aguilar, the motion unanimously carried: MOVED, approval to receive and file a presentation on the maintenance and repair evaluation results, directed staff to implement the recommendations, and authorized the creation of a third O&M field staff position (i.e., Brine Line Operator). APPROVAL OF EMPLOYEE HANDBOOK (CM#8667) Larry McKenney stated that the revised Handbook incorporated some law updates and changes. Some of the provisions changed/added include: alternative workweek schedule, expanded types of employees including interns and relatives ([page 6] nepotism is defined), family medical leave and other types of leaves, significantly updated workers compensation, significantly expanded electronic equipment (i.e., cell phones, flash drives), updated the harassment policy, and drug use/testing. The Handbook also clarifies that s employees are at will and serve at the pleasure of the Commission in accordance with the Joint Powers Authority Agreement. The last update of the Employee Handbook was in

17 Upon motion by Commissioner Anthony, seconded by Chair Catlin, the motion unanimously carried: MOVED, approval of the updated and revised Employee Handbook. Commissioner Galleano entered the meeting room at 9:58 a.m. COLA AND MERIT INCREASES FY 2012/13 (CM#8675) Celeste Cantú commented that in order to keep salaries at market, she recommended a 2% COLA. She also noted that salaries are approximately 3.8% below market. Discussion ensued regarding the member agencies COLAs. Chair Catlin stated that IEUA is the exception to the rule with a 2.5 percent increment step increase, rather than five. IEUA also budgeted less than five percent merit for its employees, and there are a number of IEUA employees that are topped out. Upon motion by Alternate Commissioner Slawson, seconded by Commissioner Aguilar, and Chair Catlin opposing, the motion carried (4-1) MOVED, approval of a 2% COLA increase and a 4% merit increase pool for FY 2012/13. For the record, Chair Catlin assured staff that he thought quite highly of them, and that his opposition was in no way reflective of staff, but rather that he opposed the COLA/Merit to be consistent with his own agency, who did not receive a COLA for FY RESOLUTION AND POLICY FOR THE RETENTION AND DESTRUCTION OF AGENCY RECORDS (CM#8681) Larry McKenney commented that the explosion of electronic information ( ), and the issues of IT capacity and transparency are the main drivers for the proposed changes in the revision of s document retention policy. Although staff recommends policy changes to be approved today, the actual practices and cultural change to bring into compliance with this new policy is significant and could take six months or more to accomplish. The policy also accounts for physical review before specific records are destroyed (i.e., aerial photos, as-built drawings etc.). Upon motion by Commissioner Anthony, seconded by Alternate Commissioner Slawson, the motion unanimously carried: MOVED, approval to adopt Resolution No , amending its policy for retention and destruction of agency records. RESOLUTION NO A RESOLUTION OF THE COMMISSIONERS OF THE SANTA ANA WATERSHED PROJECT AUTHORITY AMENDING ITS POLICY FOR RETENTION AND DESTRUCTION OF AGENCY RECORDS. (See Resolution Book for full text). LEGISLATIVE UPDATE Celeste Cantú provided a brief overview of the State Legislative Report, which was received and filed. She also congratulated EMWD for getting two pieces of metal theft legislation through. It is predicted that the Governor will sign both pieces of that legislation soon. Discussion ensued regarding possible CEQA reform legislation and s role. OLD BUSINESS None 3 17

18 CONSENT CALENDAR Upon motion by Commissioner Anthony, seconded by Commissioner Aguilar with Alternate Commissioner Slawson abstaining, the motion carried (4-0): MOVED, approval of the Consent Calendar. A. The Commission approved the Minutes from the meeting held on September 4, B. The Commission received and filed the Treasurer s Reports June and July INFORMATIONAL REPORTS The following oral/written reports/updates were received and filed. A. Cash Transactions Reports June 2012 and July 2012 B. Inter-Fund Borrowing June 2012 (CM#8670) and July 2012 (CM#8671) C. Performance Indicators and Financial Reporting June 2012 (CM#8673) and July 2012 (CM#8674) D. FYE 2012 Fourth Quarter Budget vs. Actual Variance Report (CM#8676) E. Financial Report for the Fourth Quarter ending June 30, 2012 F. Fourth Quarter FYE 2012 Expense Reports General Manager/Employees G. General Manager s Report Celeste Cantú stated that OWOW efforts are gearing up as project proposals are due October 1. intends to use the Decision Plus model to rate and rank the projects and then vet them through the Project Review Committee (PRC) comprised of Joe Grindstaff, Jerry Thibeault, and Pete Silva. Commissioner Anthony requested that staff keep the Commission apprised of the process and the PRC members efforts. He also asked about their payment for services (none). The Fifth OWOW Conference is proposed for April 11, 2013 at the Westin Hotel in Costa Mesa. H. Chair s Comments/Report None I. Commissioners Comments None CLOSED SESSION None. Celeste Cantú commented that at last Friday s meeting with Mladen Buntich, and Mladen Buntich staffs resolved about six issues and they will meet again this Friday to resolve pending issues. There being no further business for review, Chair Catlin adjourned the meeting at 10:17 a.m. APPROVED: October 2, 2012 Terry Catlin, Chair Min 4 18