ROLL CALL ITEMS RECEIVED TOO LATE TO BE AGENDIZED RECOMMENDATION: VISITOR PARTICIPATION CONSENT CALENDAR (ITEM NO. 1)

AGENDA COMMUNICATIONS AND LEGISLATIVE LIAISON COMMITTEE MEETING WITH BOARD OF DIRECTORS* ORANGE COUNTY WATER DISTRICT 18700 Ward Street, Fountain Valley, CA (714) 378-3200 Thursday, March 8, 2018, 8:00 a.m. - Conference Room C-2 *The OCWD Communications and Legislative Liaison Committee meeting is noticed as a joint meeting with the Board of Directors for the purpose of strict compliance with the Brown Act and it provides an opportunity for all Directors to hear presentations and participate in discussions. Directors receive no additional compensation or stipend as a result of simultaneously convening this meeting. Items recommended for approval at this meeting will be placed on the March 21, 2018 Board meeting Agenda for approval. ROLL CALL ITEMS RECEIVED TOO LATE TO BE AGENDIZED RECOMMENDATION: Adopt resolution determining need to take immediate action on item(s) and that the need for action came to the attention of the District subsequent to the posting of the Agenda (requires two-thirds vote of the Board members present, or, if less than two-thirds of the members are present, a unanimous vote of those members present.) VISITOR PARTICIPATION Time has been reserved at this point in the agenda for persons wishing to comment for up to three minutes to the Board of Directors on any item that is not listed on the agenda, but within the subject matter jurisdiction of the District. By law, the Board of Directors is prohibited from taking action on such public comments. As appropriate, matters raised in these public comments will be referred to District staff or placed on the agenda of an upcoming Board meeting. At this time, members of the public may also offer public comment for up to three minutes on any item on the Consent Calendar. While members of the public may not remove an item from the Consent Calendar for separate discussion, a Director may do so at the request of a member of the public. CONSENT CALENDAR (ITEM NO. 1) All matters on the Consent Calendar are to be approved by one motion, without separate discussion on these items, unless a Board member or District staff request that specific items be removed from the Consent Calendar for separate consideration. 1. MINUTES OF COMMUNICATIONS AND LEGISLATIVE LIAISON COMMITTEE MEETING HELD FEBRUARY 8, 2018 RECOMMENDATION: Approve minutes as presented END OF CONSENT CALENDAR 1

MATTERS FOR CONSIDERATION 2. STATE LEGISLATIVE UPDATE RECOMMENDATION: Agendize for March 21 Board meeting: Take a support position for AB 2003 (Daly) Sanitation Districts: Public Contracting 3. FEDERAL LEGISLATIVE UPDATE RECOMMENDATION: Agendize for March 21 Board meeting: Take action as appropriate INFORMATIONAL ITEMS 4. 11 th ANNUAL ORANGE COUNTY WATER SUMMIT 5. PUBLIC AFFAIRS OUTREACH REPORT (FEBRUARY 2018) CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AS A MATTER FOR CONSIDERATION AT THE MARCH 21 BOARD MEETING DIRECTOR S ANNOUNCEMENTS/REPORTS GENERAL MANAGER S ANNOUNCEMENT/REPORT ADJOURNMENT 2

COMMUNICATION AND LEGISLATIVE LIAISON COMMITTEE MEMBERS Philip Anthony Vicente Sarmiento Shawn Dewane Cathy Green Steve Sheldon - Chair - Vice Chair Roger Yoh - Alternate 1 James Vanderbilt - Alternate 2 Bruce Whitaker - Alternate 3 Dina Nguyen - Alternate 4 Denis Bilodeau - Alternate 5 Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda is posted in the window of the guard shack at the main entrance of the Orange County Water District, 18700 Ward Street, Fountain Valley, CA and on the OCWD website: www.ocwd.com not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Assistant District Secretary. Backup material for the Agenda is available at the District offices for public review and can be viewed online at the District s website: www.ocwd.com. Accommodations to the Disabled: Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the District Secretary at (714) 378-3233, by email at jdurant@ocwd.com by fax at (714) 378-3373. Notification 24 hours prior to the meeting will enable District staff to make reasonable arrangements to assure accessibility to the meeting. Availability of Agenda Material: As a general rule, agenda reports or other written documentation that has been prepared or organized with respect to each item of business listed on the agenda can be reviewed at www.ocwd.com. Copies of these materials and other disclosable public records distributed to all or a majority of the members of the Board of Directors in connection with an Open Session agenda item are also on file with and available for inspection at the Office of the District Secretary, 18700 Ward Street, Fountain Valley, California, during regular business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday. If such writings are distributed to members of the Board of Directors on the day of a Board meeting, the writings will be available at the entrance to the Board of Directors meeting room at the Orange County Water District office. 3

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MINUTES OF BOARD OF DIRECTORS MEETING WITH COMMUNICATIONS AND LEGISLATIVE LIAISON COMMITTEE ORANGE COUNTY WATER DISTRICT February 8, 2018 @ 8:00 a.m. Director Sarmiento called the Communications and Legislative Liaison Committee meeting to order in Conference Room C-2 at the District office. The Assistant District Secretary called the roll and reported a quorum as follows: Committee Members OCWD Staff Philip Anthony (absent) Mike Markus General Manager Vicente Sarmiento Alicia Dunkin Legislative Affairs Liaison Shawn Dewane (absent) Eleanor Torres Director of Public Affairs Cathy Green Christina Fuller Assistant District Secretary Steve Sheldon Alternates Roger Yoh James Vanderbilt Bruce Whitaker Dina Nguyen Denis Bilodeau (absent) (absent) (absent) CONSENT CALENDAR The Consent Calendar was approved upon motion by Director Green, seconded by Director Whitaker and carried [4-0] as follows. Ayes Sarmiento, Green, Sheldon, Whitaker 1. Minutes of Previous Meeting The minutes of the January 4, 2018 Communications/Legislative Liaison Committee meeting are approved as presented. MATTERS FOR CONSIDERATION 2. State Legislative Update State legislative consultant Don Gilbert reported that OCWD staff and consultants advocated gaining 30 percent credit for potable reuse in the long-term water conservation legislation, SB 606 (Skinner/Hertzberg), through meetings in Sacramento. He reported that all of the meetings were well received by elected officials and their staff. Jason Gonsalves reported on the legislative calendar and provided an update on SB 623 (Monning). 3. Federal Legislative Update Federal consultant James McConnell reported on OCWD s trip to Washington, D.C. on February 5 and 6, to discuss the Prado Feasibility Study at the Army Corps of Engineers and the need for it to remain on its current schedule leading to a Chief s Report in November 2019. He stated that OCWD staff are continuing to work with Scripps Research Institute and the Los Angeles District of the Corps on Forecast-Informed Reservation Operations (FIRO) pilot program, which was brought to the attention of the Orange County Congressional Delegation on this trip in order to begin to familiarize them with the concept. Eric Sapirstein reported on the State Revolving Fund Water Infrastructure Now Act S. 2364 (SRF-WIN Act) which OCWD will send a letter of support to Senators Boozman and Feinstein in alignment with the OCWD policy principles in the Legislative

platform. Holland and Knight reported on the President s Infrastructure package and the Fiscal year 2019 budget. INFORMATIONAL ITEMS 4. GWRS 10 th Anniversary Update Director of Public Affairs Eleanor Torres reminded the committee that the GWRS 10 th anniversary Winter Fest event will be held Friday, February 16 and the attempt to set a new Guinness World Records title for the most wastewater recycled to drinking water in 24 hours will commence on Thursday, February 15. She provided an update on the event including a timeline and opportunities for Board participation. 5. Public Affairs Outreach Report (January 2018) There was no verbal report on this item. ADJOURNMENT There being no further business to come before the Committee, the meeting was adjourned at 9:00 a.m. Vicente Sarmiento, Vice Chair 2

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AGENDA ITEM SUBMITTAL Meeting Date: March 8, 2018 To: Communications/Leg. Liaison Cte Board of Directors From: Mike Markus Staff Contact: E. Torres/A. Dunkin Budgeted: N/A Budgeted Amount: N/A Cost Estimate: N/A Funding Source: N/A Program/Line Item No.: N/A General Counsel Approval: N/A Engineers/Feasibility Report: N/A CEQA Compliance: N/A POLICY ISSUE: STATE LEGISLATIVE UPDATE SUMMARY Orange County Water District (OCWD; the District) state legislative consultants will provide a verbal report on the current legislative calendar, legislation of interest to the District, the recognition of the 10 th anniversary of the GWRS and meetings in Sacramento with elected officials and their staff. Attachment(s): Joe A. Gonsalves and Son Edelstein Gilbert Robson & Smith February 2018 State Legislative Update OCWD State Bill Matrix February 2018 AB 2003 (Daly) AB 2003 Fact Sheet RECOMMENDATION Agendize for March 21 Board meeting: Take a support position for AB 2003 (Daly) Sanitation Districts: Public Contracting. DISCUSSION OCWD s state legislative consultants, Edelstein Gilbert Robson and Smith and Joe A. Gonsalves and Son, will provide a verbal update of the state legislative calendar, legislation of interest to the District, Assembly and Senate recognition of the 10 th anniversary of the GWRS, and February meetings in Sacramento with elected officials and their staff. The bill introduction deadline was February 16 in the California Legislature, with thousands of new bills introduced. OCWD consultants and staff are working to identify any potential concerns or opportunities in the new legislation, although many of the new bills are spot bills with no specific language. OCWD s consultants organized the recognition of the 10th anniversary of the Groundwater Replenishment System (GWRS) for OCWD and Orange County Sanitation District (OCSD) on the floors of the Assembly and Senate for the achievement the GWRS represents. Mike Markus, Director Sarmiento as well as representatives of OCSD were able to participate in the floor recognition and share GWRS water with members of the Legislature. 1

Director Sarmiento and OCWD staff were able to meet in Sacramento with OCWD legislators on the long-term conservation legislation and provide an update on the North Basin Groundwater Cleanup efforts. Specifically, Director Sarmiento and staff were able to meet with Assemblymembers Quirk-Silva and Daly, as well as Senator Newman and staff for Senator Moorlach. OCWD s consultants efforts to gain a 30 percent credit for potable reuse in any long-term water conservation legislation continues. The firms and the coalition of water agencies are working with Assemblymember Caballero, a Democrat representing the Central Coast, and asked her to champion a letter to legislative leadership and the Governor requesting a 30 percent credit. This letter was ultimately signed by a bipartisan group of six Assemblymembers: Caballero, Quirk-Silva, Weber, Rubio, Gallagher, and Bigelow. In addition, Assemblymember Daly provided his own letter on the same subject and will be working with Assemblymember Caballero and others to help grow the 30 percent delegation in the Assembly. AB 2003 (Daly) Sanitation Districts: Public Contracting The Orange County Sanitation District is sponsoring Assembly Bill 2003, authored by Assemblyman Tom Daly to provide sanitation districts with greater flexibility in informing contractors about public construction opportunities. The bill expands the allowable public notification methods for construction bids, to include internet websites, radio, television or other media as bid advertising platforms. Existing law requires sanitation districts with construction projects costing more than $35,000 to advertise, at least twice, in a newspaper of general circulation. If a newspaper of general circulation does not exist in its respective area, a sanitation district is required to post the advertisement in at least three public places. The law requiring publication in a newspaper of general circulation was enacted in 1994. Today, however, advertisements in newspapers may not always be the most effective method for notifying contractors about public construction projects. Other options include online bid advertising platforms such as PlanetBids or BidSync. Sanitation districts are seeking to expand their outreach efforts with innovative and potentially more cost-effective methods to provide notice to potential bidders. Throughout the last 30 years, there have been significant advances in technology that have improved both the efficiency and effectiveness of sanitation district operations. Current law pertaining to bid notification prevents districts from utilizing potentially more cost-effective methods for securing bids and thus protecting taxpayer dollars. AB 2003 will give sanitation districts greater flexibility to choose the appropriate notification platform and create a more efficient and effective bid construction process. This bill will also maintain transparency for public construction bid opportunities. 2

TO: FROM: SUBJECT: ORANGE COUNTY WATER DISTRICT JOE A. GONSALVES AND SON EDELSTEIN GILBERT ROBSON & SMITH LLC LEGISLATIVE UPDATE DATE: February 27, 2018 February 16 marked the passing of the bill introduction deadline in the California Legislature. Since the beginning of the year, thousands of new bills have been introduced and our firms have been carefully reviewing them to compile the attached list of potentially impactful legislation. We will work with OCWD staff to identify any potential concerns or opportunities. February also marked the 10 th anniversary of OCWD s GWRS. As such, we arranged for OCWD and OC Sanitation to be recognized on the floors of the Assembly and Senate for the achievement the GWRS represents. Mike Markus, Director Sarmiento as well as representatives of OC Sanitation were able to participate in the floor recognition and share GWRS water with members of the Legislature. The trip to Sacramento also provided an opportunity to touch base with OCWD legislators on the long-term conservation legislation and provide a quick update on North Basin Groundwater Cleanup developments. Collectively, Director Sarmiento and staff were able to meet with Assemblymember Quirk-Silva and Daly as well as Senator Newman and staff for Senator Moorlach. Meanwhile, our lobbying efforts to get a sufficient credit for potable reuse in any longterm water conservation legislation continue. The Board will recall that OCWD is asking for a 30 percent credit to preserve incentives to build potable reuse projects and ensure that OCWD producers get sufficient credit for the investment that has been made in GWRS. To that end, our firms and the coalition of water agencies we are working with approached Assemblymember Caballero, a moderate Democrat representing the Central Coast, and asked her to champion a letter to legislative leadership and the Governor requesting a 30 percent credit. This letter was ultimately signed by a bipartisan group of six Assemblymembers. In addition, Assemblymember Daly sent his own standalone letter on the same subject and will be working with Assemblymember Caballero and others to help grow the 30 percent delegation in the Assembly.

OCWD Introduced Legislation February 27, 2018 AB 1944 Introduced: 1/29/2018 Sustainable groundwater management: San Luis Rey Valley Groundwater Basin. Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. The act requires the boundaries of a basin to be as identified in a specified report of the Department of Water Resources, unless other basin boundaries are established, as prescribed. This bill would divide the San Luis Rey Valley Groundwater Basin into an upper and lower subbasin, as prescribed, and would designate the subbasins as medium priority until the department reassesses basin prioritization. The bill would require water beneath the surface of the ground within the Upper San Luis Rey Valley Groundwater Subbasin to be included within the definition of groundwater for the purposes of the act by any groundwater sustainability agency developing or implementing a groundwater sustainability plan and would except from this requirement certain water beneath the surface of the ground extracted and used as authorized under an existing appropriative water right. AB 1995 Introduced: 2/1/2018 Local publicly owned electric and gas utilities: weatherization. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations, while local publicly owned electric and gas utilities are under the direction of their governing boards. Existing law requires an electrical or gas corporation to perform home weatherization services for low-income customers if the commission determines that a significant need for those services exists in the corporation s service territory. Existing law defines weatherization for these purposes as including specified measures, requires the commission to direct any electrical or gas corporation to provide as many of the specified measures as are feasible for each eligible low-income dwelling unit, and provides that weatherization may also include other building conservation measures, energy management technology, as defined, energy-efficient appliances, and energy education programs determined by the

commission to be feasible, in consideration of both the cost-effectiveness of the services and the public policy of reducing financial hardships facing low-income households.this bill would require the commission to direct an electrical or gas corporation to provide as many of the specified measures as are feasible and cost effective for each eligible low-income dwelling unit, and provides that weatherization may also include water conservation measures that result in energy savings determined by the utility to be feasible, in consideration of both the cost-effectiveness of the services and the public policy of reducing financial hardships facing low-income households.this bill contains other related provisions and other existing laws. AB 2071 Introduced: 2/7/2018 Accessory dwelling units: improvements: liability. The Planning and Zoning Law authorizes a local agency to provide by ordinance for the creation of accessory dwelling units in single-family and multifamily residential zones, as specified. That law requires the ordinance to, among other things, impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, lot coverage, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Places.This bill would provide that a public entity, including, but not limited to, a city, county, or city and county; public officer, including, but not limited to, a member of the legislative body of a city, county, or city and county; or an employee of a public entity, is not liable for any personal injury, death, property damage, or inverse condemnation, that has arisen from or is related to the use of an accessory dwelling unit and that is proximately caused by any utility system, including, but not limited to, a water system or electrical system equipment, that the public entity owns, operates, or maintains if the legislative body of a local agency has permitted the water, electrical system equipment, or accessory dwelling unit, to remain in the same location as it existed prior to January 1, 2018. The bill would limit the application of this provision to specified accessory dwelling units constructed prior to January 1, 2018 that, at the time of the personal injury, death, property damage, or inverse condemnation, the owner was attempting to bring into compliance with applicable local agency rules, regulations, or ordinances. AB 2132 Introduced: 2/12/2018 Building permit fees: waiver. The State Housing Law authorizes cities and counties to prescribe fees for permits required or authorized pursuant to the State Housing Law.This bill would authorize these entities to waive or reduce all building permit fees for improvements to the home of a person at least 60 years of age with a qualifying disability that are made to accommodate that disability. AB 2154 Introduced: 2/12/2018 Public employment: labor relations: release time. Existing law, including the Meyers-Milias-Brown Act, the Ralph C. Dills Act, the Trial Court Employment Protection and Governance Act, the Trial Court Interpreter Employment and Labor Relations Act,

and the Los Angeles County Metropolitan Transportation Authority Transit Employer- Employee Relations Act, as well as provisions commonly referred to as the Educational Employment Relations Act and the Higher Education Employer-Employee Relations Act, regulates the labor relations of the state, the courts, and specified local public agencies and their employees. Existing law establishes other requirements relating to labor relations that are applicable to specified transit agencies. These acts grant specified public employees the right to form, join, and participate in the activities of employee organizations of their choosing and requires public agency employers, among other things, to meet and confer with representatives of recognized employee organizations and exclusive representatives on terms and conditions of employment. These acts generally require the public entities in this context to grant employee representatives of recognized employee organizations reasonable time off without loss of compensation or benefits for certain purposes in connection with labor relations, commonly referred to as release time. This bill would prescribe requirements relating to release time that would apply to all of the public employers and employees subject to the acts described above and would generally repeal the provisions relating to release time in those acts. The bill would require these public employers to grant a reasonable number of employee representatives of the exclusive representative reasonable time off without loss of compensation or other benefits for specified activities. This requirement would apply to activities to investigate and process grievances; to formally meet and confer with the public employer on matters within the scope of representation; to testify or appear as the designated representative of the exclusive representative in conferences, hearings, or other proceedings before the Public Employment Relations Board, as specified; to testify or appear as the designated representative of the exclusive representative before the governing body of the public employer, or a personnel, civil service, or merit commission, among others, and to serve as a representative of the exclusive representative for new employee orientations. The bill would require the exclusive representative to provide reasonable notice requesting an absence in this connection. AB 2225 Introduced: 2/13/2018 Public agencies: data protection: standards. Existing law requires a state agency to report to the Department of Technology on its compliance with specified cybersecurity strategy incident response standards no later than July 1, 2019. Existing law authorizes a local entity that receives state funds for the purposes of storing, sharing, or transmitting data, or in support of certain information technology projects, upon the request of the department, to submit a Technology Recovery Plan to the department.this bill would state the intent of the Legislature to enact legislation that would require public agencies to meet increased data protection standards by enhancing password protection requirements and annually assessing cybersecurity responses. AB 2249 Introduced: 2/13/2018 Public contracts: local agencies: alternative procedure. The Uniform Public

Construction Cost Accounting Act authorizes a public agency, whose governing board has by resolution elected, to become subject to uniform construction cost accounting procedures. Existing law declares that these procedures promote statewide uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities. The act defines public agency as a city, county, city and county, including chartered cities and chartered counties, any special district, and any other agency of the state for the local performance of governmental or proprietary functions within limited boundaries, and also includes a nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. The act authorizes public projects of $45,000 or less to be performed by the employees of a public agency, authorizes public projects of $175,000 or less to be let to contract by informal procedures, and requires public projects of more than $175,000 to be let to contract by formal bidding procedures.this bill would instead authorize public projects of $60,000 or less to be performed by the employees of a public agency, authorize public projects of $200,000 or less to be let to contract by informal procedures, and require public projects of more than $200,000 to be let to contract by formal bidding procedures. AB 2317 Introduced: 2/13/2018 Whistleblower protection: state and local independent contractors. Existing law prohibits an employer, as defined, or any person acting on behalf of the employer, as defined, from, among other things, preventing an employee from, or retaliating against an employee for, providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses a violation of a law, regardless of whether disclosing the information is part of the employee s job duties. A violation of these provisions is a crime.this bill would extend the protections afforded to employees under these provisions to independent contractors working for state and local government who are tasked with monitoring, and receiving complaints from, facilities, services, and programs operated by state and local government.this bill contains other related provisions and other existing laws. AB 2545 Introduced: 2/15/2018 Department of Fish and Wildlife: lake or streambed alteration agreements: definitions. Existing law prohibits an entity from substantially diverting or obstructing the natural flow of, or substantially changing or using any material from the bed, channel, or bank of, any river, stream, or lake, or from depositing certain material where it may pass into any river, stream, or lake, without first notifying the Department of Fish and Wildlife of that activity, and entering into a lake or streambed alteration agreement if required by the department to protect fish and wildlife resources.this bill would define river and stream for purposes of these provisions. AB 2649 Introduced: 2/15/2018

Groundwater recharge. Under existing law, the right to water or to the use of water is limited to that amount of water that may be reasonably required for the beneficial use to be served. Existing law provides that the storing of water underground, and related diversions for that purpose, constitute a beneficial use of water if the stored water is thereafter applied to the beneficial purposes for which the appropriation for storage was made.this bill would state the intent of the Legislature to enact legislation to increase groundwater recharge. AB 2654 Introduced: 2/15/2018 Design-build: Orange County. Existing law, until January 1, 2025, authorizes local agencies, as defined, to use the design-build procurement process for specified public works with prescribed cost thresholds.this bill would establish similar provisions specific to Orange County. The bill would authorize the County of Orange and the Orange County Flood Control District, indefinitely and without exclusion, to use design-build for public works infrastructure projects in excess of $1,000,000. The bill would require specified information to be verified under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws. AB 2692 Introduced: 2/15/2018 Water: infrastructure funding. Under existing law, various measures, including legislative and initiative general obligation bond acts and budget act appropriations, provide funding for water resources projects, facilities, and programs. This bill would state the intent of the Legislature to enact legislation to establish a permanent source of water infrastructure funding. AB 2728 Introduced: 2/15/2018 Replacement of corroded or lead-containing plumbing or service lines: loans. Existing law, the Safe Drinking Water State Revolving Fund Law of 1997, establishes the Safe Drinking Water State Revolving Fund to provide grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards.this bill would, to the extent funding is made available, authorize the State Water Resources Control Board to establish a grant program to provide funding to a county or qualified nonprofit organization, as specified, to provide low-interest loans to defined property owners for the replacement of corroded or lead-containing plumbing and service lines that adversely impact drinking water standards or for the installation of a point-of-use or point-of-entry water treatment system, as specified. The bill would require a county or qualified nonprofit organization that receives a grant pursuant to these provisions to annually provide to the state board specified information relating to the loans awarded and projects funded. The bill would authorize the state board to use a funding source that is authorized for and consistent with the purposes of the program.

AB 2900 Introduced: 2/16/2018 Proposed new public water system: preliminary technical report. Existing law, the California Safe Drinking Water Act, imposes on the State Water Resources Control Board various responsibilities and duties relating to providing a dependable, safe supply of drinking water. The act prohibits a person from operating a public water system unless he or she first submits an application to the state board and receives a permit, as specified. The act requires a proposed new public water system to first submit a preliminary technical report to the state board at least 6 months before initiating construction of any water-related improvement that includes, among other things, the name of each public water system for which any service area boundary is within 3 miles of the proposed new public water system s service area and discussions of the feasibility of each of the adjacent public water systems supplying domestic water to the proposed new public water system s service area. The act makes it a misdemeanor for a person to knowingly make a false statement or representation in a report submitted, maintained, or used for purposes of compliance with the act. This bill would authorize the state board to approve the preliminary technical report and allow construction to proceed before the end of the 6-month period. The bill would require the preliminary technical report additionally to include the type of each public water system with a service boundary within 3 miles and would instead require discussions of each adjacent community water system s feasibility of supplying domestic water to the proposed new service area. Because a false statement in the report could be a crime under the provision described above, this bill would impose a state-mandated local program by expanding the scope of a crime. This bill contains other related provisions and other existing laws. AB 2939 Introduced: 2/16/2018 Accessory dwelling units. The Planning and Zoning Law authorizes a local agency to provide by ordinance for the creation of accessory dwelling units in single-family and multifamily residential zones and sets forth standards the ordinance is required to impose, including, among others, maximum unit size, parking, and height standards. Existing law requires the local agency to ministerially approve an application for a building permit to create within a single-family zone one accessory dwelling unit per lot if the unit is contained within the existing space of a single-family residence or accessory structure. In this instance, existing law authorizes a city to require owner-occupancy for either the primary residence or the accessory dwelling unit.this bill would require the local agency to ministerially approve an application for a building permit to create within a multifamily zone at least one accessory dwelling unit within an existing multifamily structure with at least 5 residential units if specified conditions are met. The bill would prohibit an application ministerially approved pursuant to this provision from having a limit on the number of accessory dwelling units created within the existing residential units or accessory structures or both. By increasing the duties of local officials, this bill would create a state-mandated local program.this bill contains other related provisions and other existing laws.

AB 3035 Introduced: 2/16/2018 Water supply. Existing law authorizes local and regional public agencies that are authorized by law to serve water to the persons or entities within the service area of the agency to sell, lease, exchange, or otherwise transfer water for use outside the agency, as specified. Existing law makes findings and declarations relating to local or regional level water management decisions.this bill would make a nonsubstantive change in the latter provision. AB 3045 Introduced: 2/16/2018 Natural Resources Agency: Division of Safety of Dams. Existing law provides that all dams and reservoirs in the state are under the jurisdiction of the Department of Water Resources. Existing law requires the department to supervise the construction, enlargement, alteration, repair, maintenance, operation, and removal of dams and reservoirs for the protection of life and property. Existing law makes it unlawful to construct, enlarge, repair, alter, remove, maintain, or operate any dam or reservoir except upon approval by the department, as prescribed.this bill would establish within the Natural Resources Agency the Division of Safety of Dams. The bill would transfer authority over dams and reservoirs from the department to the division. AB 3056 Introduced: 2/16/2018 Desalinated water. The Cobey-Porter Saline Water Conversion Law declares that the growing water needs of the state require the development of cost-effective and efficient water supply technologies and that desalination technology is now feasible to help provide significant new water supplies from seawater, brackish water, and reclaimed water.this bill would declare the intent of the Legislature to enact subsequent legislation relating to desalination. AB 3062 Introduced: 2/16/2018 Recycled water: recycling criteria. Existing law, the Porter-Cologne Water Quality Control Act, requires the State Water Resources Control Board to establish uniform statewide recycling criteria for each varying type of use of recycled water if the use involves the protection of public health. The act defines recycling criteria to mean the levels of constituents of recycled water, and the means for assurance of reliability under the design concept that will result in recycled water that is safe for the uses to be made.this bill would make nonsubstantive changes to that definition. AB 3078 Introduced: 2/16/2018 Theft: burglary: natural or manmade disasters. Existing law makes a person who commits 2nd-degree burglary or grand theft, as defined, during and within an affected county in a state of emergency or a local emergency, as defined, resulting from an earthquake, fire, flood, riot, or other natural or manmade disaster guilty of the crime of

looting, punishable by imprisonment in a county jail, as specified, except in the case of grand theft of a firearm, where the crime of looting is punishable by imprisonment in the state prison. Existing law makes a person who commits petty theft, as defined, under those same conditions guilty of a misdemeanor, punishable by imprisonment in a county jail for 6 months. Existing law authorizes the court, in its discretion, to require any person granted probation following conviction under those provisions to serve a specified number of hours of community service in any program deemed appropriate by the court.this bill would additionally make a person who commits 2nd-degree burglary or grand theft, or who commits petty theft, under an evacuation order resulting from one of the above-described disasters guilty of the crime of looting or a misdemeanor, respectively. The bill would define evacuation order as an order from the Governor, or a county sheriff, chief of police, or fire marshal, under which persons subject to the order are required to relocate outside of the geographic area covered by the order due to an imminent danger resulting from an earthquake, fire, flood, riot, or other natural or manmade disaster. By expanding the scope of existing crimes, this bill would impose a state-mandated local program.this bill contains other related provisions and other existing laws. AB 3155 Introduced: 2/16/2018 Public works: definition. Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Existing law makes a willful violation of laws relating to the payment of prevailing wages on public works a misdemeanor.this bill would expand the meaning of the term public works to include warranty work, and would include warranty work within the definition of construction as it is used to define public works. By expanding the definition of public works, the bill would expand the scope of a crime. The bill would also make technical, nonsubstantive changes.this bill contains other related provisions and other existing laws. AB 3170 Introduced: 2/16/2018 Sales and use taxes: exemptions: water efficiency. Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, and provides various exemptions from the taxes imposed by those laws. Under existing law, a sale or purchase of tangible personal property pursuant to a layaway agreement or raincheck, or under certain conditions, is considered a sale or purchase only when both payment and delivery are complete.this bill would exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, qualified water efficiency products sold or purchased during the 3-day period beginning at 12:01 a.m. on the Saturday preceding the last Monday in March, and ending at 11:59 p.m. on the following Monday in March, or for which a layaway agreement is entered into, a raincheck is issued, or

other specified orders are placed, during this period, as specified.this bill contains other related provisions and other existing laws. AB 3206 Introduced: 2/16/2018 Water conservation: water meters: accuracy and performance standards. (1)Existing law requires the State Energy Resources Conservation and Development Commission to establish design and construction standards and energy and water conservation design standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy. Existing law requires the commission to establish minimum levels of operating efficiency to promote the use of energy and water efficient appliances, including landscape irrigation equipment.this bill would require the commission, on or before January 1, 2020, to adopt regulations setting standards for the accuracy of water meters purchased, repaired, or reconditioned on and after the effective date of those regulations, including water meters installed pursuant to the Water Measurement Law, described in (2). The bill would allow a water purveyor to install a water meter possessed by that water purveyor before the effective date of the regulations for a time period deemed appropriate by the commission.this bill contains other related provisions and other existing laws. AB 3222 Introduced: 2/16/2018 Public works: prevailing wages. Existing law defines public works, for the purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.this bill would expand the definition of public works, for the purposes of provisions relating to the prevailing rate of per diem wages, to also include any construction, alteration, demolition, installation, or repair work done under private contract on a project for a charter school, as defined, when the project is paid for, in whole or in part, with the proceeds of conduit revenue bonds, as defined, that were issued on or after January 1, 2019.This bill contains other related provisions and other existing laws. SB 831 Introduced: 1/4/2018 Land use: accessory dwelling units. The Planning and Zoning Law authorizes a local agency to provide by ordinance for the creation of accessory dwelling units in single-family and multifamily residential zones and sets forth standards the ordinance is required to impose, including, among others, maximum unit size, parking, and height standards. Existing law authorizes a local agency, special district, or water corporation to require a new or separate utility connection between the accessory dwelling unit and the utility and authorizes a fee to be charged, except as specified. Existing law requires

a local agency to submit an ordinance adopted for the creation of accessory dwelling units to the Department of Housing and Community Development and authorizes the department to review and comment on the ordinance.this bill would delete the requirement that the area be zoned to allow single-family or multifamily use. The bill would specify that if a local agency does not act on an application for a accessory dwelling unit within 120 days, then the application shall be deemed approved. The bill would specify that an accessory dwelling unit shall not be considered to exceed the allowable floor-to-area lot ratio upon which the accessory dwelling unit is located and would prohibit a local agency from requiring offstreet parking spaces be replaced when a garage, carport, or covered parking structure is demolished or converted in conjunction with the construction of an accessory dwelling unit. The bill would delete provisions authorizing a local agency, special district, or water corporation to require an applicant to install a separate utility connection for the accessory dwelling unit and would state that an accessory dwelling unit shall not be considered a new residential use for purposes of calculating fees and shall not be subject to impact fees, connection fees, capacity charges, or any other fees levied by those entities. The bill would authorize the department, upon submission of an adopted ordinance for the creation of accessory dwelling units, to submit written findings to the local agency regarding whether the ordinance complies with statutory provisions. The bill would authorize the department to adopt guidelines to implement uniform standards or criteria to supplement or clarify the terms, references, or standards set forth in statute and would exempt the adoption of those guidelines from the Administrative Procedure Act. The bill would also specify the applicable building code standards for accessory dwelling units constructed before January 1, 2018.This bill contains other related provisions and other existing laws. SB 919 Amended: 2/26/2018 Water resources: stream gages. Under existing law, the State Water Resources Control Board administers a water rights program pursuant to which the state board grants permits and licenses to appropriate water. Existing law, the Open and Transparent Water Data Act, requires the Department of Water Resources, the board, and the Department of Fish and Wildlife to coordinate and integrate existing water and ecological data from local, state, and federal agencies.this bill would require the Department of Water Resources, upon appropriation by the Legislature, to develop a plan to deploy a network of stream gages that includes a determination of funding needs and opportunities for reactivating existing gages. The bill would require the department, in consultation with the board, the Department of Fish and Wildlife, the Central Valley Flood Protection Board, interested stakeholders, and, to the extent they wish to consult, local agencies, to prioritize the deployment of stream gages based upon gaps in the existing system of gages and specified considerations. SB 948 Introduced: 1/30/2018 Conservation easements: central public registry. Under existing law, a conservation easement is a limitation in a recorded instrument designed to retain land

predominantly in its natural, scenic, historical, agricultural, forested, on open-space condition. Existing law requires the Secretary of the Natural Resources Agency to establish a central public registry of all conservation easements held or required by the state, or purchased with state grant funds provided by an agency, department, or division of the state on or after January 1, 2000, as prescribed. Existing law requires the registry to be updated biennially.this bill would require the registry to be updated biennially or more frequently at the discretion of the secretary. SB 952 Introduced: 1/30/2018 Water conservation: local water supplies. Existing provisions of the California Constitution declare the policy that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of these waters is to be exercised with a view to the reasonable and beneficial use of the waters in the interest of the people and for the public welfare. Existing law requires the state to achieve a 20% reduction in urban per capita water use in California by December 31, 2020.This bill would state the intent of the Legislature to enact legislation that would require the State Water Resources Control Board to recognize local water agency investment in water supply and will ensure that local agencies receive sufficient credit for these investments in meeting any water conservation or efficiency mandates. SB 966 Introduced: 1/31/2018 Onsite treated nonpotable water systems. Existing law requires the State Water Resources Control Board to establish uniform statewide recycling criteria for each varying type of use of recycled water where the use involves the protection of public health. This bill would, on or before December 1, 2022, require the state board, in consultation with the California Building Standards Commission, to adopt regulations for risk-based water quality standards for the onsite treatment and reuse of nonpotable water, as provided. The bill would authorize the state board to contract with public or private entities regarding the content of the standards and would exempt those contracts from, among other provisions, review and approval of the Department of General Services. The bill would require a local jurisdiction, as defined, that elects to establish a program for onsite treated nonpotable water systems to, among other things, adopt, through ordinance, a local program that includes the risk-based water quality standards established by the state board. The bill would prohibit an onsite treated nonpotable water system from being installed except under a program established by a local jurisdiction in compliance with the bill s provisions. SB 981 Introduced: 2/1/2018 Home solicitation contract or offer: water treatment devices: recission. Existing law authorizes a buyer to rescind a home solicitation contract or offer, as defined, within a limited period of time if specified requirements are met. Under existing law, a contract or offer, subject to approval, for the sale, lease, or rental of a water treatment device is

deemed a home solicitation contract or offer. Existing law prohibits a water treatment device or other materials that are the subject of a home solicitation contract or offer from being delivered or installed, or other services performed, until the expiration of the rescission period, as provided. Existing law makes a violation of these provisions a crime.this bill would authorize the delivery and installation of a water treatment device or other materials during the rescission period. The bill would make the contractor responsible for all costs in removing the installed water treatment device or other materials if the buyer rescinds the contract before the expiration of the rescission period. Because a violation of the bill s requirements would be a crime, the bill would impose a state-mandated local program.this bill contains other related provisions and other existing laws. SB 998 Introduced: 2/5/2018 Water shutoffs: urban and community water systems. Existing law, the California Safe Drinking Water Act, requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health. Existing law declares it to be the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. This bill would require an urban and community water system, defined as a public water system that supplies water to more than 200 service connections, to have a written policy on residential service shutoff available in English, Spanish, or any other language spoken by at least 5% of the people residing in its service area. The bill would require the policy to include certain components and be available on the system s Internet Web site and be provided annually to customers in writing. The bill would make a violation of these provisions punishable by a civil penalty issued by the board or the commission, as appropriate, in an amount not to exceed $500 for each day in which the violation occurs. The bill would eliminate existing notice and other requirements relating to the termination of residential service for commission-regulated urban and community water systems and instead would apply the provisions of this bill to those systems. This bill would prohibit an urban and community water system from shutting off residential service until a payment by a customer has been delinquent for at least 60 days. The bill would require an urban and community water system to contact the customer named on the account and provide the customer with the urban and community water system s policy on residential service shutoff no less than 3 business days before shutoff, as prescribed. The bill would prohibit an urban and community water system from shutting off residential service until the system notifies the local health department and the local health department assesses that a shutoff at the residence would not pose a grave threat to the health and safety of the residents, except as provided. By imposing new duties on local health departments, this bill would impose a state-mandated local program.this bill contains other related provisions and other existing laws. SB 1015 Introduced: 2/7/2018 California Climate Resiliency Program. Existing law establishes the Wildlife

Conservation Board and prescribes the membership and functions and duties of the board with regard to the preservation and protection of natural lands and wildlife habitat. The California Global Warming Solutions Act of 2006 requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and be available, upon appropriation by the Legislature, for greenhouse gas emissions reduction activities.this bill would establish the California Climate Resiliency Program to increase resiliency to climate change impacts in urban and rural communities throughout the state and to fund the planning and implementation of projects that improve and enhance the climate change resiliency of natural systems, natural and working lands, and developed areas. The bill would require that the program be developed and implemented by the Wildlife Conservation Board. The bill would require that moneys from the Greenhouse Gas Reduction Fund, bonds, settlements, and other revenue sources upon appropriation in the annual Budget Act, be transferred to the California Climate Change Resiliency Fund, which the bill would create. The bill would authorize the board to expend moneys from the California Climate Change Resiliency Fund for purposes of the program. The bill would also require the board to expend a portion of those moneys to fund projects located in disadvantaged communities, as described, and low-income communities, as defined. SB 1073 Introduced: 2/12/2018 Local flood control: cities. Existing law authorizes a city to incur indebtedness and liability, as prescribed, for the purposes of protecting the city from overflow by water, to drain the city, or to secure an outlet for overflow water and drainage. Existing law provides that the provisions relating to this authorization are intended to be paramount and controlling as regards these matters.this bill would make nonsubstantive changes in those provisions. SB 1215 Introduced: 2/15/2018 Drinking water systems and sewer systems: consolidation and extension of service. Existing law declares it to be the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system or a state small water system, serving a disadvantaged community, as defined, consistently fails to provide an adequate supply of safe drinking water. This bill would also authorize the state board to set timeline and performance measures to facilitate completion of extension of service of drinking water. This bill contains other related provisions and other existing laws.

SB 1422 Introduced: 2/16/2018 Water quality: plastic and human health. Under the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with authority over matters relating to water quality. The state board and the regional boards prescribe waste discharge requirements for the discharge of waste in accordance with the federal National Pollutant Discharge Elimination System (NPDES) permit program established by the federal Clean Water Act and the Porter-Cologne Water Quality Control Act. Under the act, the state board and the regional boards are required to implement a program to control discharges of preproduction plastic, which includes plastic resin pellets and powdered coloring for plastics, from point and nonpoint sources.this bill would declare the intent of the Legislature to enact legislation relating to levels of plastic that are found in water and the impacts of those levels on human health. SB 1461 Introduced: 2/16/2018 Water corporations: rates: rate of return. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including water corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.this bill would state the intent of the Legislature to enact legislation reforming the rate of return earned by water corporations. Total Measures: 38 Total Tracking Forms: 16

california legislature 2017 18 regular session ASSEMBLY BILL No. 2003 Introduced by Assembly Member Daly (Coauthor: Senator Wilk) February 1, 2018 An act to amend Section 20783 of the Public Contracts Code, relating to sanitation districts. legislative counsel s digest AB 2003, as introduced, Daly. Public contracts: sanitation districts: notice. Existing law authorizes a sanitation district to make and perform any agreement with a public or private corporation of any kind or a person for the joint construction, acquisition, disposition, or operation of any property or works of a kind that might be constructed, acquired, disposed of, or operated by the district. Existing law requires a district, when an expenditure for work exceeds $35,000, to contract with the lowest responsible bidder after notice. Existing law requires the notice to be published, at least twice, not less than 5 days apart, in a newspaper of general circulation, printed and published in the district, or if there is none, to be posted in at least 3 public places in the district that have been designated by the district board as places for posting this notice. This bill would instead require the notice to be published in a manner that the district board determines to be reasonable, which may include, but is not limited to, newspapers, Internet Web sites, radio, television, or other means of mass communication. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. 99

AB 2003 2 The people of the State of California do enact as follows: line 1 SECTION 1. Section 20783 of the Public Contract Code is line 2 amended to read: line 3 20783. When work is done by the district itself by force line 4 account, the amount shall not exceed five thousand dollars line 5 ($5,000). When the expenditure required for the work exceeds line 6 thirty-five thousand dollars ($35,000), it shall be contracted for line 7 and let to the lowest responsible bidder after notice. The notice line 8 inviting bids shall set a date for the opening of bids. The first line 9 publication or posting of the notice shall be at least 10 days before line 10 the date of opening the bids. Notice shall be published at least line 11 twice, not less than five days apart, in a newspaper of general line 12 circulation, printed and published in the district, or if there is none, line 13 it shall be posted in at least three public places in the district that line 14 have been designated by the district board as the places for posting line 15 this notice. The district board shall cause a notice to be published line 16 in a manner that the district board determines is reasonable, which line 17 may include, but is not limited to, newspapers, Internet Web sites, line 18 radio, television, or other means of mass communication. The line 19 notice shall distinctly state the work to be done. line 20 In its discretion, the district board may reject any bids presented line 21 and readvertise. If two or more bids are the same and the lowest, line 22 the district board may accept the one it chooses. If no bids are line 23 received, the district board may have the work done without further line 24 bid. line 25 If all bids are rejected, the district board, on a resolution adopted line 26 by a four-fifths vote, may declare that the work can be performed line 27 more economically by day labor, or the materials or supplies line 28 furnished at a lower price in the open market and may have the line 29 work done in a manner stated in the resolution in order to take line 30 advantage of this lower cost. line 31 If there is a present or anticipated great public calamity, including line 32 an extraordinary fire, flood, storm, or other disaster the district line 33 board may, by resolution adopted by a four-fifths vote declaring line 34 that the public interest and necessity demand immediate line 35 expenditure of public money to safeguard life, health, or property, line 36 expend any sum required in the emergency without submitting the line 37 expenditure to bid. 99

3 AB 2003 line 1 Cost records of the work shall be kept in the manner provided line 2 in Sections 4000 to 4007, inclusive, of the Government Code. line 3 This section shall not apply to sewerage maintenance, repair line 4 work, or to any uncompleted works under construction by district line 5 forces prior to the enactment of this section, and shall not be line 6 construed to exempt any work from Part 7 (commencing with line 7 Section 1720) of Division 2 of the Labor Code. O 99

Tom Daly 69 th Assembly District AB 2003 Sanitation Districts: Public Contracting Fact Sheet Summary: This will provide sanitation districts with greater flexibility in informing contractors about public construction opportunities. The bill expands the allowable public notification methods for construction bids, to include internet websites, radio, television or other media as bid advertising platforms. Background: Existing law requires sanitation districts with construction projects costing more than $35,000 to advertise, at least twice, in a newspaper of general circulation. If a newspaper of general circulation does not exist in its respective area, a sanitation district is required to post the advertisement in at least three public places. The law requiring publication in a newspaper of general circulation was enacted in 1994. Today, however, advertisements in newspapers may not always be the most effective method for notifying contractors about public construction projects. Other options include online bid advertising platforms such as PlanetBids or BidSync. Sanitation districts are seeking to expand their outreach efforts with innovative and potentially more cost-effective methods to provide notice to potential bidders. Problem: Throughout the last 30 years, there have been significant advances in technology that have improved both the efficiency and effectiveness of sanitation district operations. Current law pertaining to bid notification prevents districts from utilizing potentially more cost-effective methods for securing bids and thus protecting taxpayer dollars. Solution: AB 2003 will give sanitation districts greater flexibility to choose the appropriate notification platform and create a more efficient and effective bid construction process. This bill will also maintain transparency for public construction bid opportunities. Support: Orange County Sanitation District Opposition: For More Information: David W. Miller (916) 319-2069 david.miller@asm.ca.gov ( 2/6/18)

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AGENDA ITEM SUBMITTAL Meeting Date: March 8, 2018 To: Communications/Leg. Liaison Cte Board of Directors From: Mike Markus Staff Contact: E. Torres/A. Dunkin Budgeted: N/A Budgeted Amount: N/A Cost Estimate: N/A Funding Source: N/A Program/Line Item No.: N/A General Counsel Approval: N/A Engineers/Feasibility Report: N/A CEQA Compliance: N/A POLICY ISSUE: FEDERAL LEGISLATIVE UPDATE SUMMARY Orange County Water District (OCWD; the District) Board of Directors, staff and federal consultants James McConnell, Eric Sapirstein of ENS Resources and Holland and Knight will provide a verbal summary of outcomes of the February 5 and 6 visit to Washington, D.C., the Administration s proposed budget, infrastructure package, and proposed legislation of interest to the District. Attachment(s): James McConnell February 2018 Federal Report ENS Resources February 2018 Federal Report Holland & Knight February 2018 Federal Report RECOMMENDATION Agendize for the March 21 Board meeting: Take action as appropriate. RELEVANT STANDARDS Forge long-term, positive and proactive relationships with elected officials and policy makers. Keep abreast of federal funding opportunities and legislation that may impact OCWD, other water agencies and/or special districts. DISCUSSION/ANALYSIS On February 5 and 6, Board President Denis Bilodeau and General Manager Mike Markus met with members of Congress, staff from Senators Feinstein and Harris offices, House and Senate committee staff, and staff from the Army Corps of Engineers. Topics for discussion included the status of the ongoing Prado Feasibility Study (FS) being conducted by the Los Angeles District of the Corps. Washington headquarters of 1

the Corps is pleased with the progress of the study and, in particular, the level of cooperation between OCWD and the L.A. District. Assuming a favorable Chief of Engineers Report when the study is concluded in 2020, the project will be eligible for inclusion in a future Water Resources Development Act (WRDA). With that in mind, congressional committee staff as well as members of the Orange County congressional delegation were briefed on the status of the study and its inclusion in a potential 2020 WRDA. Meetings were held with Representatives Lou Correa and Alan Lowenthal. Topics included the Prado FS, as well as Forecast Informed Reservoir Operations (FIRO) and OCWD s work with the Scripps Institute to broaden the existing program at Lake Mendocino in Northern California to include a new FIRO project at Prado Dam. OCWD advocated for increased funding in FY 2019 for FIRO from $5.5 million to $6 million. FIRO was also a topic discussed with the counsels to both Senators Dianne Feinstein and Kamala Harris, and with legislative staff to Congressmen Ed Royce and Ken Calvert. With both members and staff, OCWD expressed support for the State Revolving Loan Fund (SRF) program that the District has used effectively over the years, most notably with the initial expansion of the Groundwater Replenishment System (GWRS). Together with the Water Infrastructure Finance and Innovation Act (WIFIA) at the Environmental Protection Agency (EPA), SRF funding will hopefully be used to construct the final expansion of GWRS. Right now, the SRF program is oversubscribed in California. Legislation in the Senate, S. 2364 (SRF-WIN) by Senator John Boozman (R-AK), would expand funding available for the SRF program. OCWD discussed the benefits of the bill that would provide $50 billion in leveraged funding over five years in a meeting with the Senator s staff. Senator Feinstein is already a co-sponsor of the legislation. In addition, a meeting was held with Congressman Calvert s Appropriations Legislative Assistant to discuss SRF and the Senate bill. In his capacity as Chairman of the House Interior and the Environment Appropriations Subcommittee, Representative Calvert has jurisdiction over annual funding levels for the SRF program. His staff expressed support for OCWD s agenda, including being of assistance in advancing the five-year deviation for operation of incidental water conservation at Prado Dam at a year round level of 505 feet pending completion of the Prado FS. Each of the congressional offices was also briefed on the status of the North Basin groundwater cleanup efforts underway by the District and status of the Environmental Protection Agency s (EPA) proposed listing of the site on the National Priorities List (NPL), i.e. Superfund. Administration s Proposed Budget and Infrastructure Package The Trump Administration released their proposed FY 2019 federal spending, supporting public infrastructure roads, bridges, water, and rail projects, while significantly cutting spending to existing programs. 2

The $4.4 trillion budget proposal includes increases in several Administration priorities, including: an additional $10 billion in discretionary funding to address the opioid epidemic; and $18 billion over the next two years for a wall along the southern U.S. border with Mexico. The budget includes an ambitious $1.5 trillion infrastructure program, although the bulk of the money for rebuilding roads, bridges and other projects would have to come from state and local governments or the private sector, with the federal government spending $200 billion over 10 years. Under the Administration s FY 2019 spending proposal, EPA would receive a 23.2 percent cut to its environmental programs. However, EPA s support for water infrastructure would be provided through the SRF and WIFIA program. The FY 2019 budget includes $2.3 billion for SRF and $20 million for the WIFIA program, which is close to current FY 2018 levels under the CR. The U.S. Bureau of Reclamation would see about $1 billion in program spending under the Trump budget, but the popular WaterSMART programs, which include cost-shared grants for water infrastructure improvements, basin planning grants and the Title XVI water reuse project grants, were requested at only $19.9 million, about a 75 percent cut from current funding levels. The Administration request for the Army Corps of Engineers would equal about a 20 percent cutback from existing funding levels. Markups of the twelve FY 2019 appropriations bills may begin in April and May 2018. Congress will also likely finish this fiscal year s spending bills by passing a FY 2018 omnibus appropriations bill (prior to March 23 when the current CR expires) to fund the federal government through September 30, 2018 at the increased funding levels previously agreed to in the Bipartisan Budget Act of 2018 (BBA).. 3

JAMES F. MCCONNELL ATTORNEY-AT-LAW 1901 PENNSYLVANIA AVENUE, N.W. SUITE 700 WASHINGTON, D.C. 20006 917-434-3603 jmcconnell@tfgnet.com ORANGE COUNTY WATER DISTRICT Washington Report February 2018 February began with a Washington trip for Board President Bilodeau and General Manager Mike Markus on February 5 and 6. Meetings were held with Members of Congress and staff of both California Senators, along with various House and Senate committee staff, and with the Army Corps of Engineers. Subjects for discussion included the status of the ongoing Prado Feasibility Study (FS) being conducted by the Los Angeles District of the Corps. Washington headquarters of the Corps is pleased with the progress of the study and, in particular, the level of cooperation between OCWD and the L.A. District. Assuming a favorable Chief of Engineers Report when the study is concluded in 2020 the project will be eligible for inclusion in a future Water Resources Development Act (WRDA). With that in mind, congressional committee staff as well as Members of the Orange County congressional delegation were briefed on the status of the study and its inclusion in a potential 2020 WRDA. Of course, under existing congressional rules banning earmarks Congress has limited authority to influence what projects are included in WRDA. A project with a favorable Chief s Report, so long as the Administration in power at the time forwards that report to Congress, must be included in WRDA unless Congress as a whole votes to remove the project from the list of authorized projects. It is the Office of Management and Budget (OMB) which has the greatest authority in determining what projects are recommended for authorization in WRDA, whether those projects are recommended for an eventual construction new start by the Corps, and the annual level of funding once construction commences. (OMB s authority was demonstrated this month in the proposed FY 2019 federal budget when funding for the Santa Ana River Mainstem Project was cut from $40 million in FY 2018 to $15 million in FY 2019 because of inadequate attention being paid to OMB which determines the level of funding; and too much attention being expended on Congress which has abdicated spending authority over individual Corps projects.) Meetings on Capitol Hill were held with Representatives Lou Correa and Alan Lowenthal. Subjects included the Prado study, as well as Forecast Informed Reservoir

Operations (FIRO) and OCWD s work with the Scripps Institute to broaden the existing program at Lake Mendocino in Northern California to a new FIRO project at Prado Dam. OCWD advocated for increased funding in FY 2019 for FIRO from $5.5 million to $6 million. FIRO was also a topic discussed with the counsels to both Senators Dianne Feinstein and Monica Pham, and with legislative staff to Congressmen Ed Royce and Ken Calvert. With both Members and staff, OCWD expressed support for the State Revolving Loan Fund (SRF) program which the District has used effectively over the years, most notable with the initial expansion of the Groundwater Replenishment System (GWRS). Together with the Water Infrastructure Finance and Innovation Act (WIFIA) at the Environmental Protection Agency (EPA), SRF funding will hopefully be used to construct the final expansion of GWRS. Right now the SRF program is oversubscribed in California and that was mentioned in each of the Washington meetings. Legislation in the Senate, S. 2364 (SRF-WIN) by Senator John Boozman (R-AK) would expand funding available for the SRF program. We discussed the benefits of the bill which would provide $50 billion in leveraged funding over five years in a meeting with the Senator s staff. Senator Feinstein is already a co-sponsor of the legislation. In addition, a meeting was held with Congressman Calvert s Appropriations Legislative Assistant to discuss SRF and the Senate bill. In his capacity as chairman of the House Interior and the Environment Appropriations Subcommittee, Representative Calvert has jurisdiction over annual funding levels for the SRF program. As always, his staff expressed support for OCWD s agenda, including being of assistance in advancing the five-year deviation for operation of incidental water conservation at Prado Dam at a year round level of 505 feet pending completion of the Prado FS. Each of the congressional offices was also briefed on the status of the North Basin groundwater cleanup efforts underway by the District and status of EPA s proposed listing of the site on the National Priorities List (NPL), i.e. Superfund. The delegation was uniformly supportive of OCWD s efforts. It is fair to say that this month s trip was a success in all regards. On February 12 the Trump Administration released their vision for FY 2019 federal spending, deeply cutting some federal programs while calling for a renewed emphasis on investing in public infrastructure roads, bridges, water, and rail projects. While Congress may support some proposals in the budget request, they are not likely to go along with the Administration s proposed spending cuts to popular federal programs as they begin their FY 2019 appropriations work. The $4.4 trillion budget proposal includes increases in several Administration priorities, including: an additional $10 billion in discretionary funding to address the opioid epidemic; and $18 billion over the next two years for a wall along the southern U.S. border with Mexico. The budget includes an ambitious $1.5 trillion infrastructure

program, although the bulk of the money for rebuilding roads, bridges and other projects would have to come from state and local governments or the private sector, with the federal government spending $200 billion over 10 years. The budget request included an addendum that prioritized where Congress should spend the increased funding levels agreed to in the Bipartisan Budget Act of 2018 (BBA), which passed after the Trump budget was finalized and included a Continuing Resolution (CR) to keep the government funded through March 23, 2018. Under the Administration s FY 2019 spending proposal, the Environmental Protection Agency (EPA) would again take one of the biggest hits, with a proposed 23.2 percent cut to its environmental programs. But, EPA s support for water infrastructure would be provided through the State Revolving Funds (SRF) and Water Infrastructure Finance and Innovation Act (WIFIA) program. The FY 2019 budget includes $2.3 billion for the SRFs and $20 million for the WIFIA program, close to current FY 2018 levels under the CR. The Bureau of Reclamation would see about $1 billion in program spending under the Trump budget, but the popular WaterSMART programs, which include cost-shared grants for water infrastructure improvements, basin planning grants, and the Title XVI water reuse project grants, were requested at only $19.9 million, about a 75 percent cut from current funding levels. The Administration request for the Army Corps of Engineers would equal about a 20 percent cutback from existing funding levels. Now, markups of the twelve FY 2019 appropriations bills will likely begin in earnest in April and May 2018. Congress will also likely finish this fiscal year s spending bills by passing a FY 2018 omnibus appropriations bill (prior to March 23 when the current CR expires) to fund the Federal Government through September 30, 2018 at the increased funding levels previously agreed to in the BBA. In addition, with the Administration having submitted its infrastructure proposal as part of the FY 2019 budget, Congress will begin to address legislation in this regard. Given the politics of 2018 and the coming election in November, it is an open question as to whether an infrastructure package can make it entirely through the legislative process this year.

800 17 th Street, N.W., Suite 1100 Washington, DC 20006 T 202.955.3000 F 202.955.5564 Holland & Knight LLP www.hklaw.com Orange County Water District February 2018 Report FY 2018 Budget and Appropriations Congress passed a deal in one package to fund the government and set topline budget numbers for FY 2018 and 2019. The legislation, passed on February 9, will fund the government through March 23. This additional time allows the House and Senate Appropriations Committees to draft a FY 2018 spending omnibus bill under new budget cap guidelines. The deal raises the spending caps by approximately $300 billion over two years; increases the limit on military spending by $80 billion in the current fiscal year and $85 billion in the next year, beginning October 1; and increase the limit on nondefense spending by $63 billion this year and $68 billion next year. Within the budget and spending deal, the following is also included, over two years (FY 2018 and 2019): $6 billion for opioid funding $5.8 billion for the Child Care Development Block Grant program $4 billion to rebuild and improve VA Hospitals and Clinics $2 billion for National Institutes of Health (NIH) research $20 billion for infrastructure Two year reauthorization for Community Health Centers with increased funding Ten year reauthorization of the Children s Health Insurance Plan (CHIP) Several health extenders, including a delay of Medicaid DSH cuts, and five years of funding for home visiting programs Tax extenders, including extension of empowerment zone tax incentives, extension of credit for nonbusiness energy property, and extension and modification of credit for residential energy property $89.3 billion disaster relief emergency appropriations, including o $23.5 billion for the FEMA Disaster Relief Fund o $28 billion in Community Development Block Grants (CDBG) for housing, infrastructure repairs, economic revitalization, and mitigation needs Within the short-term continuing resolution (CR) that funds the government, specific amounts of money are directed to the Appropriations Committees. The money is to be used for different spending buckets such as infrastructure and Committees are directed to allocate funds to each Subcommittee to craft legislation and distribute the money. This past weekend, both the House and Senate Appropriations Committees received their topline budget numbers and have begun drafting the FY 2018 omnibus appropriations bill. The House is

expected to consider the bill during the week of March 12. Congress has to pass a bill before the CR ends on March 23. The Administration s FY 2019 Budget Request The Administration released its FY 2019 budget request on February 12, a proposal that invests in more military funding, removes regulations, and includes spending reforms to cut deficits by $3 trillion over a decade. In the request, the President also supports congressional Republican efforts to implement welfare reform; it suggests imposing work requirements for Medicaid recipients, and includes new restrictions for food stamps, as well as major changes to the program itself. While several programs important to local governments are targeted for elimination or significant funding cuts, the budget request serves primarily as an indicator of White House priorities Congress ultimately appropriates funds. Please find below a summary of budget request s funding for the District s priorities: Environmental Protection Agency (EPA): The FY 2019 budget request recommends $6.146 billion for the EPA, representing a $1.86 billion reduction from current funding level. o $863 million for EPA's Drinking Water State Revolving Fund (SRF), $5.9 million more than current funding level. o $1.394 billion Clean Water SRF, $9.4 million more than current funding level. o $20 million for Water Infrastructure Finance and Innovation Act (WIFIA) program, $7 million more than current funding level. Army Corps of Engineers (Corps): The President s FY 2019 budget requests $4.7 billion for the Army Corps of Engineers, which is $1.25 billion below FY 2017 enacted level and $1.39 billion reduction from the FY 2018 appropriations, averaging the House and Senate FY 2018 Energy and Water Appropriations bills which Congress has not yet completed. o Investigations: $82 million, $39 million below FY 2017 enacted level and $27.233 million below the FY 2018 averaged Energy and Water Appropriations bills 121 o Construction: $871.733 million, $1 billion decrease over FY 2017 enacted level and $828.342 million below the FY 2018 averaged Energy and Water Appropriations bills. This budget gives priority to the projects with the highest economic, environmental, and safety returns. o Operation and Maintenance: $2,073,733,000, $1.07 billion decrease over FY 2017 enacted level and $123.505 million below the FY 2018 averaged Energy and Water Appropriations bills. Bureau of Reclamation: $1.049 billion, $240 million decrease from current funding level. o WaterSMART: $19.9 million, $63 million decrease from current funding level. Title XVI Water Reclamation and Reuse Projects: $3 million, $31 million decrease from current funding level. #55640812_v1 2

Infrastructure Package President Trump released his $1.5 trillion infrastructure plan on February 12, identifying significant reliance on funding leveraged from states and local governments, and other nonfederal private entities. Additionally, the plan focuses on streamlining reviews and deregulation, to ease the building of highways and other projects states are also given increased flexibility on the use of toll revenue. The Administration plans to reduce federal-cost sharing from the original 80 percent to no more than 20 percent of the revenue that a local sponsor brings to the project the $200 billion federal investment will include $100 billion in cost-sharing payments for state and local projects, and $50 billion for rural projects. The remaining $50 billion is allocated for transformative projects, such as Elon Musk s Hyperloop project. The plan also includes $14 billion for credit programs to pay for credit subsidy authority to make new loans and loan guarantees to sponsors of infrastructure projects. The proposal does include Superfund reforms which include: Authorization of Brownfield rehabilitation and cleanup of Superfund sites under WIFIA. Creation of a Superfund Revolving Loan Fund and Grant Program and Authorize National Priorities List Sites to be Eligible for Brownfield Grants. Provides Liability Relief for States and Municipalities Acquiring Contaminated Property through Actions as Sovereign Governments. Integrates Cleanup, Infrastructure and Long-term Stewardship Needs by Creating Flexibility in Funding and Execution Requirements. Broadens eligibility of Private Activity Bonds (PABs) (to include Superfund). As a funding source has not yet been identified, the proposal faces an uncertain future on Capitol Hill. Democrats have called the cost-sharing proposal a non-starter, and said the White House must introduce new spending to pay for the plan, without making significant cuts to existing transportation programs. Republicans have similarly agreed, though GOP leaders on the House Transportation Committee have suggested raising the gas tax as a potential pay-for. However, the House and Senate authorization committees have begun holding hearings on the infrastructure proposal. #55640812_v1 3

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AGENDA ITEM SUBMITTAL Meeting Date: March 8, 2018 Budgeted: Yes Budgeted Amount: $75,000 To: Communications/Leg. Liaison Cte. Cost Estimate (gross): $75,000 Board of Directors Funding Source: 1012.51119 Program/Line Item No.: 9959 From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: E. Torres CEQA Compliance: N/A Subject: 11 th ANNUAL ORANGE COUNTY WATER SUMMIT SUMMARY The 11 th annual Orange County Water Summit will take place Friday, June 1, 2018 at the Grand Californian Hotel and Spa at the Disneyland Resort in Anaheim, California. Staff will provide a save the date flier, sponsorship brochure and speaker update. Attachment(s): 2018 OC Water Summit save the date flier RECOMMENDATION Informational DISCUSSION/ANALYSIS The 11 th annual OC Water Summit will be held at the Grand Californian Hotel and Spa at the Disneyland Resort in Anaheim, Calif. on Friday, June 1, 2018 from 7:30 a.m. to 1:30 p.m. The theme for the 2018 OC Water Summit is Water...Behind the Magic. OCWD cohosts the event with the Municipal Water District of Orange County (MWDOC) and the Disneyland Resort. A copy of the save the date flier is attached for the Committee s information. Below is the draft event program: 7:30 a.m. Registration & Continental Breakfast 7:50 a.m. 8:00 Welcome & Pledge of Allegiance a.m. Jeffery M. Thomas, Director, Municipal Water District of Orange County (Confirmed) Stephen R. Sheldon, Director, Orange County Water District (Confirmed) Master of Ceremonies: Fritz Coleman, Weathercaster, NBC4 (Confirmed) 8:00 a.m. 8:30 Session 1: Looking into the Crystal Ball - Forecasting Future 1

a.m. 8:30 a.m. 9:05 a.m. 9:05 a.m. 9:35a.m. 9:35a.m. 9:50 a.m. 9:50 a.m. 10:30 a.m. Water Supplies Will we see a return to drought, or another winter of magical storms? NBC 4 weathercaster Fritz Coleman looks into his crystal ball to give the Orange County and California water forecast and Dr. Ralph will discuss improving weather predictability and its correlation to capturing more stormwater. Fritz Coleman, Weathercaster, NBC4 (Confirmed) Dr. Marty Ralph, Director, Center for Western Weather and Water Extremes, Scripps Institution of Oceanography (Invited) Session 2: Vying for the Wand State or Local Control More than 40 years ago, the State Water Resources Control Board was created and given the broad authority and responsibility to protect California s water quality and balance competing demands on our water resources. However, over the last several years, its powers have expanded to enforcement in areas typically addressed by local water agencies like conservation and consolidation. What is the right balance of power? In this session, attendees will hear about the State Board s broad authorities and newer roles addressing homelessness near bodies of water and other controversial subject matter. Yvonne West, Senior Staff Counsel, State Water Resources Control Board Office of Enforcement (Invited) Session 3: The Illusion of Conservation The Unintended Consequences of Water Use Mandates Conventional wisdom suggests conserving water can only benefit areas affected by drought. But researchers at the University of California, Riverside have deduced that indoor residential conservation can have unintended consequences in places where systems of wastewater reuse have already been implemented, diminishing both the quantity and quality of influent available for treatment. Meanwhile reduced demands are stressing water systems that were built for large deliveries and are spurring water quality issues. Kurt Schwabe, Adjunct Fellow, Water Policy Center, Public Policy Institute of California (Invited) Marc Marcantonio, General Manager, Yorba Linda Water District (Invited) Networking Break Session 4: Resisting the Force Regional Agencies Resist Permanent Conservation Measures San Francisco Public Utility Commission and San Diego County 2

Water Authority will discuss how they are fighting the State Water Resources Control Board s move to enact permanent conservation measures. 10:30 a.m. 11:40 a.m. 11:40 a.m. - 12:00 p.m. 12:00 p.m. - 1: 25 p.m. Representative, San Francisco Public Utilities Commission (Invited) Representative, San Diego County Water Authority (Invited) Session 5: Transfiguring Water Agencies Investments in water infrastructure allow for a safe and reliable water supply to be delivered to a vast majority of residents across the state. However, this is not the case for some Californians who live in rural, disadvantaged communities that lack access to clean drinking water. While local, public water agencies understand this is a critical public health and social issue that requires focused state leadership, many believe that taxing Californians water is not the solution. Proposed legislation would fundamentally change how water districts operate while others could cease to exist. Moderator: Pete Weitzner, Editor Orange County Business Journal (Invited) The Honorable Bill Monning, California State Senate Majority Leader (Invited) The Honorable Anna M. Caballero, California State Assemblymember (Invited) Networking Break Luncheon Sessions Losing the Magic Making Conservation a California Way of Life Is it Legal? Are We Taking Things Too Far? Conservation mandates pose some unique legal issues. For instance, how do conservation mandates relate to the reasonable use requirements in the California Constitution? Does a conservation mandate constitute a taking? Moderator: Chris Maven Austin Author of The Maven s Notebook (Invited) TBD (Hertzberg or Friedman) Magic be Dammed! Bringing Water & Power to the West The Bureau of Reclamation (USBR) is a contemporary water management agency and the largest wholesale provider of water in the country. It delivers water to more than 31 million people and provides one out of five western farmers with irrigation water for 3

farmland that produces much of the nation s produce. The USBR is also the second largest producer of hydroelectric power in the western and has constructed more than 600 dams and reservoirs including Hoover Dam on the Colorado River and Grand Coulee on the Columbia River. Brenda Burman, Commissioner U.S. Department of the Interior Bureau of Reclamation (Invited) PREVIOUS RELEVANT BOARD ACTION(S): Annual 4

th 11ANNUAL OC WATER SUMMIT June 1, 2018 7:30am-1:30pm Grand Californian Hotel & Spa Disneyland Resort, Anaheim W ATER Wha beh d the MAGIC Featuring Master of Ceremonies NBC4 Weathercaster FRITZ COLEMAN HOSTED BY California s historic drought was washed away by remarkable storms only to have the climate pendulum swing right back. While water professionals in Southern California worked their magic to store as much water as possible, other water systems in some parts of the state are still struggling. How will we deal with the annual uncertainty of the weather to ensure that supplies are ample even when the forecast is daunting? Who will come to the aid of those in need of safe drinking water and where will the money come from to fund it? To find out more, Save-The-Date for the 11th Annual Orange County Water Summit on Friday June 1, 2018 at Disney's Grand Californian Hotel & Spa. To sponsor, register or learn more, please visit www.ocwatersummit.com or contact: Tiffany Baca (714) 593-5013 - tbaca@mwdoc.com Crystal Nettles (714) 378-3202 - cnettles@ocwd.com INDIVIDUAL TICKET $130* Ticket includes continental breakfast, lunch, self-parking and summit materials. *Ticket price will increase to $150 on 05/18/18