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Indian Wells Valley

Water District

Board of Directors Meeting

March 13, 2017

BOARD OF DIRECTORS

INDIAN WELLS VALLEY WATER DISTRICT

REGULAR BOARD MEETING

AGENDA

MONDAY, MARCH 13, 2017 - 6:00 P.M.

BOARD OF DIRECTORS’ HEARING ROOM

500 W. RIDGECREST BLVD., RIDGECREST

(In compliance with the Americans with Disabilities Act, if you are a disabled person and you

need a disability-related modification or accommodation to participate in this meeting, please

contact Rose Koch at (760) 384-5502. Requests must be made as early as possible and at least

one full business day before the start of the meeting. Pursuant to Government Code section

54957.5, any materials relating to an open session item on this agenda, distributed to the Board

of Directors after the distribution of the agenda packet, will be made available for public

inspection at the time of distribution at the following location: Indian Wells Valley Water

District, 500 W. Ridgecrest Blvd., Ridgecrest, CA).

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. POSTING OF AGENDA DECLARATION

5. CONFLICT OF INTEREST DECLARATION

6. PUBLIC QUESTIONS AND COMMENTS

(THIS PORTION OF THE MEETING IS RESERVED FOR PERSONS DESIRING TO

ADDRESS THE BOARD ON ANY MATTER NOT ON THE AGENDA AND OVER

WHICH THE BOARD HAS JURISDICTION. HOWEVER, NO ACTION MAY BE

TAKEN BY THE BOARD OF DIRECTORS ON ANY ITEM NOT APPEARING ON

THE AGENDA. NON-AGENDA SPEAKERS ARE ASKED TO LIMIT THEIR

PRESENTATION TO FIVE MINUTES. PUBLIC QUESTIONS AND COMMENTS

ON ITEMS LISTED ON THE AGENDA WILL BE ACCEPTED AT ANY TIME THE

ITEM IS BROUGHT FORTH FOR CONSIDERATION BY THE BOARD. WHEN

YOU ARE RECOGNIZED BY THE CHAIRPERSON, PLEASE STATE YOUR NAME

AND ADDRESS FOR THE RECORD).

7. CURRENT BUSINESS/COMMITTEE REPORTS

A. Consent Calendar

Description: Approval of Board Meeting Minutes and Accounts Payable

Disbursements.

1. Approval of Minutes:

a. February 13, 2017 Regular Board Meeting

2. Approval of Accounts Payable Disbursements

B. Administration/Executive Committee

1. Special District Risk Management Authority (SDRMA) 2017 Election

Board of Directors

Description: Notification of Nominations for the Special District Risk

Management Authority (SDRMA) Board of Directors in accordance with

the SDRMA Sixth Amended and Restated Joint Powers Agreement.

Committee Recommends: No recommendation.

2. California Special Districts Association (CSDA) Board of Directors call

for Nominations Seat C

Description: The Elections and Bylaws Committee is looking for

Independent Special District Board Members or their General Managers

who are interested in leading the direction for the 2018-2020 term.

Committee Recommends: No Recommendation.

3. Ordinance No. 101: Adopting Regulations and Penalties to Identify and

Discourage Excessive Water Use Pursuant to Senate Bill 814

Description: Board discussion and provide direction to staff on draft

Ordinance No. 101 (SB No. 814) as it relates to the District’s Water

Shortage Contingency Plan within the Urban Water Management Plan.

Committee Recommends: Board consider updating the Water Shortage

Contingency Plan and include Ordinance No. 101 to meet the

requirements of SB No. 814 and incorporate the changes in to the Urban

Water Management Plan in 2020.

4. Automated Metering Infrastructure (AMI) Opt-Out Procedure

Description: Board consideration of procedure, including application and

fee schedule, to allow a customer to choose to continuing to have the

meter read manually.

Committee Recommends: Board consider approving the Automated

Metering Infrastructure Opt-Out Procedure as presented with the inclusion

of date on the application form.

5. Ordinance No. 102: Adopting Rules and Regulations Governing

Compensation Received by Members of the Board of Directors for

Services Provided on Behalf of the Indian Wells Valley Water District

Description: Board discussion and consideration to adopt an Ordinance

governing the compensation received by members of the Board of

Directors, including consideration of an annual 5% increase.

Committee Recommends: Board consider adopting Ordinance No. 102:

Adopting Rules and Regulations Governing Compensation Received by

Members of the Board of Directors for Services Provided on Behalf of the

Indian Wells Valley Water District as presented.

C. Resolution No. 17-02: Accepting Dedication of Water System Improvements

for Mainline Extension at Murray Middle School, Value: $19,000.00

Description: Board consideration of acceptance of dedication of water system

improvements for mainline extension at Murray Middle School, Value:

$19,000.00.

D. Resolution No. 17-03: Restating the Consolidation of District Elections with the

Statewide General Elections

Description: Kern County Elections Office request for a new resolution

requesting consolidation of future elections. The resolution should include a

request for biennial elections consolidated with the general election on even-

numbered years, reimbursement to the County of Kern for costs to conduct the

election, and that the resolution remain in effect until rescinded by the board.

E. Indian Wells Valley Groundwater Authority

Description: Report and discussion regarding the February 16, 2017 board

meeting of the Indian Wells Valley Groundwater Authority. Including, Board

discussion and consideration to approve the Bylaws of the Indian Wells Valley

Groundwater Authority and the Charter for the Policy Advisory Committee of the

Indian Wells Valley Groundwater Authority. Next meeting is scheduled for

March 16, 2017.

F. General Manager and Staff Update (The Board will consider and may take action

on the following items):

1. Water Production, New Services, and Personnel Safety Record

Description: Water produced from all District wells, report of the new

services installed in the District, and personnel safety record for the

preceding month.

2. Public Outreach

Description: Public Outreach Report.

3. July 19, 2016 Special Board Workshop Action Items Update

Description: Update on the items below.

Purchase Policies: Contact all vendors on the vendor list by e-mail

and advise them to register on the District’s website to receive e-

mail alerts for all District projects requiring bids. Also, advertise

annually in the newspaper advising vendors to register on the

website.

4. January 24, 2017 Special Board Workshop Action Items Update

Description: Update on the items below.

Arsenic Plant vs Blending: Staff and Chuck Krieger to present the

pros and cons of quantitative/qualitative aspects of concepts related

to arsenic facility vs. blending including costs for consideration.

Cost of Service Study: Staff run scenarios keeping the current

tiers, 3% increase annually, and reviewing the debt service. Staff

to present scenarios at a subsequent Board Meeting.

Ordinance No. 101 Excessive Water Use: Staff draft Ordinance

No. 101 to reflect a 1% increase in Tiers 3 and 4 for all

residential/commercial (if applicable) users if the Governor

declares a State drought condition or local drought condition. If

there is an Indian Wells Valley Water District emergency water

shortage condition, draft as proposed in Section 5 (as proposed)

Local Water Supply Shortage Condition for all

residential/commercial (if applicable) users. Jim Worth to confirm

whether or not commercial users may be included in Ordinance

No. 101.

Director Compensation: Legal Counsel review District resolutions

pertaining to director compensation. Board recommends director

compensation $100 or allowable amount per training

event/meeting/etc. including consideration of an annual increase of

5%.

5. Well 33 Repair/Rehabilitation Project

Description: Update on the status of this Project.

6. OpTerra Solar Project

Description: Update on the OpTerra Solar Project.

7. Water Supply Improvement Project

Description: Update on the status of this project.

8. Financial Status

Description: Report on the District’s current financial status.

9. AMI Pilot Project

Description: Update on the AMI Pilot Project.

10. Conservation

Description: Update on the Conservation Program and discussion on

water conservation related items.

11. West Church Avenue Service Lateral Replacements Project

Description: Update on the West Church Avenue Service Lateral

Replacement Project.

12. Arsenic Treatment Facilities

Description: Update on the Arsenic Treatment Facilities.

13. Operations

Description: Staff report on operations.

8. BOARD COMMENTS/FUTURE AGENDA ITEMS

9. CLOSED SESSION

A. Potential Litigation

Conference with Legal Counsel

One Matter

(Pursuant to Government Code Section 54956.9(d)(2))

10. ADJOURNMENT

Approval of Minutes

MINUTES OF THE REGULAR BOARD MEETING

BOARD OF DIRECTORS INDIAN WELLS VALLEY WATER DISTRICT

February 13, 2017

The Regular Meeting of the Board of Directors of the Indian Wells Valley Water District was called to order by President Brown at 6:00 p.m. in the Board of Directors Hearing Room, 500 West Ridgecrest Boulevard, Ridgecrest, California. The Pledge of Allegiance was led by Jim Worth. DIRECTORS PRESENT: President Peter E. Brown Vice-President Charles F. Cordell

Director Donald J. Cortichiato Director Charles D. Griffin Director Ronald R. Kicinski

DIRECTORS ABSENT: None. ALSO PRESENT: Jim Worth, Attorney; Don Zdeba, General Manager; Jason Lillion, Operations Superintendent; Renee Morquecho, Chief Engineer; Jennifer Keep, Chief Financial Officer; Rose Koch, Recording Secretary;

AGENDA DECLARATION

Recording Secretary, Rose Koch, reported that the agenda for tonight’s Regular Board Meeting was posted on Friday, February 10, 2017. Jim Worth announced that a matter has come before the Board of Directors after posting of the Regular Board Meeting Agenda that requires immediate action by the Board. The item being ‘Receipt of written claim to threaten potential litigation against the District.’ This item will be discussed in Closed Session.

MOTION: was made by Director Cortichiato and seconded by Vice-President Cordell to add proposed item to the Closed Session Agenda. Motion was carried, unanimously. (Ayes: Brown, Cordell, Cortichiato, Griffin, Kicinski. Nays: None.)

CONFLICT OF INTEREST DECLARATION

None.

PUBLIC QUESTIONS AND COMMENTS Public making comment: Renee Westa-Lusk commented on the Notice of Preparation of Environmental Impact Report for Kern County Marijuana Land Use Ordinance. Mike Neel commented on the perception of a conflict of interest with Director Kicinski and the hiring of TOSS

CALL TO ORDER

PLEDGE ROLL CALL AGENDA DECLARATION CONFLICT OF INTEREST PUBLIC COMMENTS

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temporary employees. Mr. Neel also commented on recording/videoing future board meetings. Elaine Mead also commented on recording/videoing future Board meetings. Judie Decker reported that at the last meeting of the Eastern Kern County Resource Conservation District (EKCRCD) it was announced that California City was proceeding with and investigating the details of hydroponic marijuana growing. Judie Decker commented on the possible conflict of interest between Jim Worth as the District’s legal counsel and Gene McMurtrey as the legal counsel on the proposal to import water from Fremont Valley. Jim Worth and Gene McMurtrey are partners with the firm McMurtrey, Hartsock and Worth.

CONSENT CALENDAR

MOTION: was made by Director Cortichiato and seconded by Director Kicinski to approve the Minutes of the January 9, 2017 Regular Board Meeting, January 24, 2017 Special Board Meeting Workshop, and to approve payment of Accounts Payable totaling $2,180,633.56.

Director Griffin commented that for the record, he would like his written comments of the January 24, 2017 Special Board Meeting Workshop be included with tonight’s board meeting minutes. These comments will be included as an attachment to the February 13, 2017 Regular Board Meeting Minutes.

Motion was carried, unanimously. (Ayes: Brown, Cordell, Cortichiato, Griffin, Kicinski. Nays: None.)

PLANT AND EQUIPMENT COMMITTEE

Renee Morquecho reported that the East Kern Air Pollution Control District (EKAPCD) is requesting permission to install a new air quality monitoring station on District property located off Primavera Street and Sydnor Avenue (Wells 9A/10 site). The current outdoor station at City Hall is not capable of meeting the needs of the new station. The new station will need 100-amp electrical service, a shelter to house electronic equipment, HVAC system, and 33-foot tall antenna. The building requires a 10-foot x 12-foot concrete slab. The committee recommended allowing the EKAPCD to construct the air quality monitoring station on District property provided they pay for their own electricity. The committee also recommended that the current Southern California Edison (SCE) account, which serviced old Well 8, be transferred to EKAPCD once the station is operable.

MOTION: was made by Vice-President Cordell and seconded by Director Griffin to approve EKAPCD to construct the air quality monitoring station on District property with the caveat they pay for their own electricity and the current account with SCE be transferred to EKAPCD once the station is operable. Motion was carried, unanimously. (Ayes: Brown, Cordell, Cortichiato, Griffin, Kicinski. Nays: None.)

CONSENT CALENDAR P & E EKAPCD REQUEST

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On Wednesday January 18, 2017, the District received one (1) bid for subject project from Layne Christensen Company. The bid amount was $337,255.00. A pre-bid job walk was required to bid on this project. Two other contractors participated in the job walk but did not bid the project. When contacted, both indicated they did not realize how much site work was required and simply did not have a construction crew or subcontractor available to do the work at this time. The bid by Layne included exceptions to some of the insurance requirements and also the disinfection requirements. After review by legal counsel, two items were of concern that the District could not waive. After discussion with Layne, Layne agreed to drop those two requests. The committee recommended awarding the contract for re-equipping Well No. 34 to Layne Christensen Company in the amount of $337,255.00.

MOTION: was made by Director Cortichiato and seconded by Director Kicinski to award the contract for re-equipping Well No. 34 to Layne Christensen Company in the amount of $337,255.00. Motion was carried, unanimously. (Ayes: Brown, Cordell, Cortichiato, Griffin, Kicinski. Nays: None.)

Vance Corporation completed the site grading for Well No. 35 on December 16, 2016. No preliminary or stop notices were received. The Contract Work was completed in accordance with the contract documents. The committee recommended the Board accept the Contract Work performed by Vance Corporation for $80,700.00 and release retention of $4,035.00.

MOTION: was made by Director Kicinski and seconded by Vice-President Cordell to accept contract work performed by Vance Corporation in the amount of $80,700.00 and release retention of $4,035.00. Motion was carried, unanimously. (Ayes: Brown, Cordell, Cortichiato, Griffin, Kicinski. Nays: None.)

All work performed by Eric Onstott Construction for the Construction of Temporary Pavement Replacement has been completed in accordance with the contract documents. No preliminary or stop notices were received. The committee recommended the Board accept the Contract Work performed by Eric Onstott Construction in the amount of $233,478.50 and release retention of $11,673.92.

MOTION: was made by Director Griffin and seconded by Director Cortichiato to accept contract work performed by Eric Onstott Construction in the amount of $233,478.50 and release retention of $11,673.92. Motion was carried, unanimously. (Ayes: Brown, Cordell, Cortichiato, Griffin, Kicinski. Nays: None.)

ADMINISTRATION/EXECUTIVE COMMITTEE

Resolution No. 17-01 was presented for concurring in nomination to the Executive Committee of the Association of California Water Agencies Joint Powers Insurance Authority (“ACWA JPIA”). Cucamonga Valley Water District has requested support of Director Kathleen Tiegs’ nomination through the adoption of a concurring resolution.

AWARD OF CONTRACT: RE-EQUIP WELL 34 ACCEPTANCE OF CONTRACT WORK: VANCE CORPORATION ACCEPTANCE OF CONTRACT WORK: ONSTOTT CONSTRUCTION ADMIN/EXEC RESO 17-01

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MOTION: was made by Vice-President Cordell and seconded by Director Kicinski, accepting Resolution 17-01 for concurring in nomination to the Executive Committee of the ACWA JPIA. The Motion was carried, by the following roll call vote:

President Brown: Yes

Vice-President Cordell: Yes Director Cortichiato: Yes

Director Griffin: Yes Director Kicinski: Yes

The Board discussed the proposed policy for delinquent insurance premium payments for Retirees, Directors, and COBRA Recipients (Recipients). There has not been any previous policy to follow for delinquent insurance premium payments. Proposed policy includes the following:

⋅ Recipients are billed the first business day of each month. ⋅ Recipients become delinquent if not paid by the first day of the

month after billing. ⋅ Delinquent balances will be charged a $2.00 late fee plus five

percent (5%) on the late balance each month. ⋅ If delinquent, the next bill sent will include a courtesy notice

of delinquent status. The notice will state “If your previous balance remains unpaid 10 days after the billing date of this invoice, a Reminder Letter will be generated for $6.00.”

⋅ No sooner than eleven days after the bill with the courtesy notice was sent, the Administrative Assistant will mail a Reminder Letter to the Recipient via U.S. first class mail.

This procedure will continue until the account is 90 days past due, at which time, the District shall seek legal resolution which may include termination of benefits.

MOTION: was made by Director Kicinski and seconded by Director Cortichiato to approve the Delinquent Account Procedure for Health Insurance Premium Contributions for Retirees, Directors, and COBRA Recipients as presented.

Vice-President Cordell expressed concern with the termination of benefits and suggested termination should be considered on a case-by-case basis. Jim Worth recommended that if there was someone who had reached the termination point, it could come back to the Board of Directors for consideration. Before termination of benefits, the Board of Directors will discuss and take under consideration.

MOTION: was made by Director Kicinski and seconded by Director Cortichiato to amend the previous motion to include that before termination of benefits, it will come before the Board of Directors for discussion and consideration. Motion was carried, unanimously. (Ayes: Brown, Cordell, Cortichiato, Griffin, Kicinski. Nays: None.)

Don Zdeba presented the revisions to draft Ordinance No. 101 Adopting Regulations and Penalties to Identify and Discourage Excessive Water Use Pursuant to Senate Bill 814. As per discussion at the January 24,

DELINQUENT INSURANCE PREMIUM PAYMENT POLICY ORDINANCE 101

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2017 Special Board Meeting Workshop, a redline version of draft Ordinance No. 101 was included in the Board Packet. The committee recommended adopting Ordinance No. 101, which includes 1) changes of reference to Exhibit A, 2) Ordinance 101 to also apply to Commercial use and Commercial Customers, and 3) an assessed fine of 1% of the total Tier 3 and Tier 4 use during that billing cycle until the Drought State of Emergency is declared over by the Governor or like action. The Ordinance will be published in its entirety in a local media within 10 days of adoption. Don Zdeba reported that it has come to his attention that the District’s 2015 Urban Water Management Plan Section 6. Water Supply Reliability and Water Shortage Contingency Planning, Section c. Excessive Use Penalties defines “excess water” as “the amount of water delivered in excess of the specific customer’s established allotment during any billing period; however, if a customer’s total annual usage is equal to or less than the annual allotment...” In Don Zdeba’s opinion, this definition is vague. Section c. also states “During any declared water shortage emergency, a customer who exceeds the established allotment will pay a surcharge of two times the highest rate tier per hundred cubic feet (ccf) for excess water delivered during the first or second billing period, and a surcharge of four times the highest rate tier per ccf for excess water delivered during the third and subsequent consecutive billing periods.” Don Zdeba recommended to the Board that this item be tabled, brought to the Administration/Executive Committee, and then to the Board of Directors at the March 13th Regular Board Meeting. Director Kicinski inquired what the ramifications were if the District did not comply with Senate Bill 814. Jim Worth suggested review of the 2015 Urban Water Management Plan to see if it meets the State’s requirement of Senate Bill 814, add an appeal process, remove any ambiguity, and keep penalties to a minimum.

INDIAN WELLS VALLEY GROUNDWATER AUTHORITY (IWVGA) President Brown reported that there were four presentations at the January 19th meeting. Presentations may be found on the Kern County website. The bylaws were discussed. Draft bylaws will be distributed at the Groundwater Sustainability Agency’s (GSA) Board meeting to everyone for their agencies to approve. The goal is to have the bylaws approved by March. One change in the bylaws is the addition of a Water Resource Manager. Jim Worth recommended that the Board keep discussion at a minimum and that it would be more appropriate for the discussion to take place at the GSA meeting. The bylaws will be voted upon at the March 16th GSA meeting. Once the bylaws have passed, the goal will be to get the Policy Advisory Committee (PAC) in place as soon as possible. The next IWVGA meeting will be held Thursday, February 16th at 10:00 a.m.

IWVGA

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GENERAL MANAGER AND STAFF UPDATE

Don Zdeba updated the safety record to 762 consecutive days without a recordable injury. Metered water production at the wells for the month of January was 97,643,700 gallons (299.7 acre-feet). The number the State Water Resources Control Board (SWRCB) is using for comparison is metered water through the distribution system or consumption, and non-revenue water which is water lost to leaks, flushing activities, blow-offs, etc. For the month of January, the number is 99,360,000 gallons (304.9 acre-feet). The conservation results for January were reported to the SWRCB on February 6th. Consumption was down 25.5% compared to January 2013. The 20% conservation target established by the Board of Directors took effect June 1st. For the eight-month period since, the District’s cumulative result is 21% exceeding the goal by 1%. For the month of January, the District’s reported R-gpcd was 88, 10% lower than January 2015 and 4.3% lower than January 2014. There were three new connections during the month of January. Total number of new connections for this fiscal year is 30, contributing $231,450.00 in revenue. Public Outreach:

⋅ Don Zdeba attended the Community Collaborative meeting at City Hall on February 7th. Mr. Zdeba provided the following update:

Conservation results for January and the cumulative results since the Board adopted the 20% target beginning in June.

State Water Resources Control Board will be meeting to consider a staff recommendation to extend the Emergency Drought actions set to expire the end of this month.

Conductor pipe being set for Well No. 34. Mr. Zdeba has accepted an invitation to speak at the

Democratic Club on Saturday at noon. The District will be staffing a booth at the annual Home

and Leisure Show on March 11th and 12th at the Desert Empire Fair Grounds.

Don Zdeba updated the Board of Directors on the July 19th, 2016 Special Board Workshop Action Items:

⋅ Purchase Policies: Draft a vehicle purchase policy. Contact all vendors on the vendor list by e-mail and advise them to register on the District’s website to receive e-mail alerts for all District projects requiring bids. Also, advertise annually in the newspaper advising vendors to register on the website. Resolution 16-09 was presented to the Board for approval August 8th. The Board agreed by consensus to continue current policy practices and not approve Resolution 16-09. This item will be complete when staff emails vendors to register on website. Update: No change. The review and vetting of the vendor list is in the final stages. Since there is a lack of e-mail information for every vendor, staff will send a direct mailing to each one inviting them to register on the District’s website.

GENERAL MANAGER & STAFF UPDATE SAFETY, PRODUCTION & NEW SERVICES PUBLIC OUTREACH BOARD WORKSHOP UPDATE 2016

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Don Zdeba updated the Board of Directors on the January 24, 2017 Special Board Workshop Action Items:

⋅ Arsenic Plant vs Blending: Staff and Chuck Krieger to present the pros and cons of quantitative/qualitative aspects of concepts related to arsenic facility vs. blending including costs for consideration. Update: No progress to report.

⋅ Cost of Service Study: Staff run scenarios keeping the current tiers, 3% increase annually, and reviewing the debt service. Staff to present scenarios at a subsequent Board Meeting. Update: Staff is working on incorporating the adjustments discussed at the Workshop and is planning to bring a report to the March 7th Finance Committee Meeting.

⋅ Ordinance No. 101 Excessive Water Use: Staff draft Ordinance No. 101 to reflect a 1% increase in Tiers 3 and 4 for all residential/commercial (if applicable) users if the Governor declares a State drought condition or local drought condition. If there is an Indian Wells Valley Water District emergency water shortage condition, draft as proposed in Section 5 (as proposed) Local Water Supply Shortage Condition for all residential/commercial (if applicable) users. Jim Worth to confirm whether or not commercial users may be included in Ordinance No. 101. Update: Tabled.

⋅ Director Compensation: Legal Counsel review District resolutions pertaining to director compensation. Board recommends director compensation $100 or allowable amount per training event/meeting/etc. including consideration of an annual increase of 5%. Update: Legal Counsel plans to bring this item to the March 13th Board Meeting.

Renee Morquecho reported that the Board approved the proposal from Layne Christensen to line and test pump the well at the January 24th workshop. Layne has ordered the needed parts and is tentatively scheduled to begin work week of February 27th. District staff continues to hold weekly meetings with OpTerra. Wiring and electrical are being installed at all the well sites. Installation of modules at Well No. 33 was finished last week. Some modules at the Wells 9A/10 site and the Well No. 30 site had to be installed a little higher up off the ground using unistrut supports due to their location in the 100-year flood plain. The HVAC and lighting upgrades are scheduled to begin the end of this month. Hydro Resources has drilled a pilot hole at Well No. 35. The geophysical logging was completed Friday night. Formation samples were taken to Kreiger and Stewart to be dried and analyzed. Krieger and Stewart is finalizing the design of the well within the next few days. Jennifer Keep reported that the estimated year-to-date revenues as of January 31, 2017 are $7,477,766 and estimated expenses are $6,124,684, so estimated revenues exceed estimated expenses by $1,353,082, which is better than budget by $212,310. Jennifer Keep announced that she and Don Zdeba participated in a Standard & Poors rating review in December. The re-evaluation of the

BOARD WORKSHOP UPDATE 2017 WELL 33 REHAB OPTERRA SOLAR PROJECT WSIP FINANCIAL STATUS

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District’s 2009 Certificate of Participation (COP) Bonds resulted in the District being re-rated from A+ to AA-. There will be a Press Release. The District has begun using the new Neptune system for meter reading. The system can pick up usage data via the towers or through the hand held devices. Right now they can read the meters that are part of the pilot project and also the Automated Meter Infrastructure (AMI) meters that were part of the 5/8” meter exchange project. This will be the first month of using the new system and the District will be able to gauge the success by the end of the month. Jennifer Keep reported on the following conservation items:

State Water Resources Control Board (SWRCB) Water Waster Report – There were 12 water waste reports during January 2017. Ten contacts were made. Two resulted in formal Second Notices and one Third Notice with penalty.

Cash for Grass –Ninety two yards have been completed resulting in removal of 100,341 square feet of turf ($100,341). There are 23 yards (28,778 square feet) in the process of being converted. There are 47 yards ($102,000) that are pre-approved and are awaiting notice for pre-inspection. There is approximately 8,000 sq. ft. for applications (4) pending. There is $142,881 Cash for Grass funds available from the revised $382,000 budget. Staff is working with the State to see if it is possible to make a modification to the program again to offer more rebate to top users. Approximately 17.2 acre-feet of water per year will be saved from yards that have been converted.

XERIC© Ambassador Consultations: No consultations were scheduled or completed for the month of January. There are three consultations pending.

Jason Lillion reported that the new 8-inch mainline is installed on Sunset Place and the District will be sending off the Bac-T sample tomorrow. Once the sample is confirmed absent, District crew will begin installation of laterals on Sunset Place. Mr. Lillion reported that staff has fabricated a dog leg to get over and around utilities in the intersection of Margalo Street and Church Avenue. The dog leg should be installed tomorrow. The next step will be to install laterals on the 100, 200, and 500 block of Church Avenue. Staff pulled the variable speed pumps at both plants. Both stainless impellers and epoxy-coated impellers look good. Over time, the District plans to gauge the longevity of each type of impeller. For the month of January, one service was repaired and 22 were replaced. There were 33 blowoffs for a loss of 56,078 gallons. Sixty eight valves were turned. The NO-DES truck should be enroute soon and training is scheduled for week of March 6th.

BOARD COMMENTS/FUTURE AGENDA ITEMS Vice-President Cordell commented on the need to look at expenditures and possibly cut back. Director Griffin thanked the public for their participation. Director Griffin also thanked Mike Neel for his letter of support.

AMI PROJECT CONSERVATION CHURCH SERVICE LATERAL PROJECT ARSENIC FACILITIES OPERATIONS REPORT BOARD COMMENTS

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President Brown commented on who will be attending the Integrated Regional Water Management Plan (IRWMP) meetings. Don Zdeba was present at the January meeting and will continue to represent the District and IWV Cooperative Groundwater Management Group at future meetings. President Brown thanked staff for the PowerPoint pictures of the Opterra Solar Project. President Brown thanked Stan Rajtora for his comments on the GSA Bylaws. With no further Board or Public comments, President Brown recessed the meeting and adjourned to Closed Session at 7:50 p.m.

CLOSED SESSION The meeting was reconvened in Closed Session at 8:04 p.m. The meeting was recalled to Open Session at 8:58 p.m.

No action was taken that would require disclosure under the Brown Act.

ADJOURNMENT With no further business to come before the Board, the meeting was adjourned at 8:58 p.m.

Respectfully submitted,

Rose Koch Recording Secretary

APPROVED:

CLOSED SESSION ADJOURNMENT

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Committee Reports


GROUNDWATER SUSTAINABILITY ACT COMMITTEE

MEETING MINUTES

THURSDAY, FEBRUARY 23, 2017 – 3:00 P.M.

BOARD ROOM 500 W. RIDGECREST BLVD., RIDGECREST

Attendees: Peter Brown, Chuck Griffin, Don Zdeba, and Renée Morquecho

Teleconferencing in was Indian Wells Valley Water District’s attorney James Worth

1. Call to Order The meeting was called to order at 3:02 p.m.

2. Committee/Public Comments

None.

3. Indian Wells Valley Groundwater Authority The committee recommended that the following agencies be mentioned by name in the Bylaws under section 5.6 POLICY ADVISORY COMMITTEE MEMBERSHIP: Searles Valley Minerals, Mojave Pistachio, and Meadowbrook. All changes will be submitted to the Indian Wells Valley Groundwater Authority Board for review and approval at the March 16, 2017 regular Board Meeting.

4. Future Agenda Items Chuck Griffin asked that Jim Worth speak about the February 16, 2017 Indian Wells Valley Groundwater Authority meeting and why Inyo County’s representative and alternate both were in the closed session.

5. Adjournment The meeting was adjourned at 4:10 p.m.


PLANT AND EQUIPMENT COMMITTEE

REGULAR MEETING

REPORT

TUESDAY, MARCH 7, 2017 – 2:00 PM


Attendees: Chuck Cordell, Ron Kicinski, Don Zdeba, Renée Morquecho, Jason Lillion, and Jennifer Keep. 1. Call to Order

The meeting was called to order at 2:00 p.m.


None.

3. Dedication of Facilities: Murray Middle School

A representative for this project has not yet signed the dedication paperwork. Staff expects it to be signed this week and to bring the dedication to the Board meeting for approval.

4. Well 33 Repair/Rehabilitation: Update

Layne Christensen began work on February 27th. The liner has been installed and gravel packing was finished this morning. The next step is consolidation of the gravel pack using airlifting and then add more gravel pack if needed after consolidation. Once consolidated, a 5-7 ft cement slurry or bentonite seal will be added to the top of the gravel pack.

5. WSIP Update: Upgrades to Well 34 and New Well 35

Well 34: The contract has been signed by Layne Christensen and reviewed by District legal counsel. The contract arrived at the District today for signature. Once signed, a Notice to Proceed will be sent and a pre-construction meeting scheduled.

Well 35: Well 35 has been drilled and cased. The plumbness/alignment survey was

conducted yesterday. Today, Hydro Resources is setting up for pumping/surge development then step drawdown test and constant rate test.

Plant & Equipment Committee March 7, 2017 – Page 2

6. AMI Pilot Project: Update

So far the meter reading with the new AMI system is going smoothly. There has only been one anomaly so far. MIU number validation is continuing. The AMI opt-out policy will be going before the Administration/Executive Committee tomorrow.

7. Solar Power Project: Update District staff continues to hold weekly meetings with OpTerra. Crews worked Saturday to pour concrete pads at the five well sites for new transformers. They plan to set solar disconnects at these sites this week. They will also be removing the concrete forms, doing wire management, and filing in holes under inverters. Electricians began working today on the electrical for the carport structure in the District’s parking lot. Lighting upgrades will commence in about two weeks while the HVAC upgrades are scheduled for the end of March.

8. Arsenic Treatment Facilities: Update

The expense for rebuilding the two variable speed pumps has been approved and staff is now waiting to schedule shipment of the pumps. Just like the last two pumps, one will be epoxy coated and the other will have 316 stainless steel impellers.

9. Future Agenda Items

None.

10. Adjournment

The meeting was adjourned at 2:17 p.m.


FINANCE COMMITTEE REGULAR MEETING

REPORT

TUESDAY, MARCH 7, 2017 – 3:00 PM


ATTENDEES: Chuck Griffin, Ron Kicinski, Don Zdeba, Jason Lillion, Renee Morquecho and Jennifer Keep

1. Call to Order

The Finance Committee Meeting was called to order at 3:00 pm.


None.

3. Cost of Service Study Description: Staff update on Cost of Service study. Staff is still in progress making the adjustments discussed at the January 24, 2017 Board Workshop as well as preparing the Cost of Service study report, which is the supporting documentation for the need and validity of the proposed rate adjustments in accordance with Proposition 218. Director Griffin asked if staff is also preparing an individualized budget-based billing rate structure for the Board to review. Staff said it was not; the direction at the Board Workshop was to apply a 3% increase on the current rate structure. Director Griffin is concerned that some customers’ usage gets into the Tier 3 range because of the size of their households, which could be unaffordable if the penalties described in Draft Ordinance 101 are applied. Staff reported the penalties for customers fully using Tier 3 would be less than $1.00 per month during a Governor Declared State of Emergency. However, if there is a local water shortage, the penalties are much stiffer. Director Griffin was satisfied that the “State” penalty would not be excessive. He also noted he would prefer Tier 3 water users are not called “water wasters” in District documentation.

4. Fraud Risk Discussion Description: Discuss potential or actual fraud risks within the organization. None to report.

Finance Committee Meeting Report March 6, 2017, Page 2 5. Financial Statements, January 31, 2017 (final) and February 28, 2017 (preliminary)

Description: Presentation to Committee financial reports and a graph depicting current revenue and expense trends compared to previous fiscal year actuals. Year to date revenues as of January 31, 2017 are $7,505,254 and expenses are $6,131,764, so revenues exceeded expenses by $1,373,489, which exceeds budget by $235,717. Staff presented the following spreadsheet, which compares January 2017 year to date actual to budgeted revenues and expenses by category, and balance sheet.

Indian Wells Valley Water District Revenues vs. Expense

Actuals & Budget through January 2017

Budget Actuals Δ

Revenues Total Water Sales 6,118,000 6,150,099 32,099

Total Water Service Revenue 159,000 165,678 6,678

Total Non-Operating Income 304,200 342,551 38,351

Capital Contributions 842,200 846,926 4,726

Total Revenues 7,423,400 7,505,254 81,854 Expenses

Pumping Plant 636,723 586,258 -50,465

Arsenic Treatment Plants 210,466 204,573 -5,893

Transmission & Distribution 954,171 1,064,180 110,009

Engineering 197,068 247,177 50,109

Customer Service 195,850 194,465 -1,385

Field Services 253,514 223,176 -30,338

General & Administration 980,772 944,916 -35,856

Legislative 68,456 59,870 -8,586

Depreciation 1,611,000 1,612,333 1,333

Non-Operating, Interest 724,090 742,680 18,590

Non-Operating, Miscellaneous 90,929 130,160 39,231

Non-Operating, Conservation 285,259 74,183 -211,076

Non-Operating, Alternate Water 77,330 47,794 -29,536

Total Expenses 6,285,628 6,131,764 -153,864 Net Revenue Increase (Decrease) 1,137,772 1,373,489 235,717

Finance Committee Meeting Report March 6, 2017, Page 3

Finance Committee Meeting Report March 6, 2017, Page 4 Estimated year to date revenues as of February 28, 2017 are $8,225,753 and estimated expenses are $6,885,764, so estimated revenues exceed estimated expenses by $1,339,989, which is better than budget by $424,674.

Finance Committee Meeting Report March 6, 2017, Page 5

*Actual Revenues and Expenses are Estimated

6. Accounts Payable Disbursements Description: Presentation to Committee of Accounts Payable Disbursements reports for Board approval. The Committee recommended approval of accounts payable disbursements totaling $1,427,841.17 as follows: Checks through: 2/15/17 2/23/17 . Prepaid $ 29,316.45 $ 35,643.97 Current 1,301,243.13 61,637.62 Total $ 1,330,559.58 $ 97,281.59

7. Future Agenda Items None.

8. Adjournment The Committee adjourned at 3:28 pm.

BOARD OF DIRECTORS


ADMINISTRATION/EXECUTIVE COMMITTEE

MEETING MINUTES

WEDNESDAY, MARCH 8, 2017 – 3:30 P.M.

BOARD ROOM

500 W. RIDGECREST BLVD., RIDGECREST

Attendees: Peter Brown, Chuck Cordell, Don Zdeba, Renée Morquecho, Jennifer Keep and Jason Lillion

1. Call to Order

The meeting was called to order at 3:32 p.m.


None.

3. Special District Risk Management Authority (SDRMA) 2017 Election Board of

Directors

Committee made no recommendations.

4. California Special Districts Association (CSDA) Board of Directors call for

Nominations Seat C

Committee made no recommendations.

5. Ordinance No. 101

Staff recommended to expand Ordinance No. 101 to be the Water Shortage Contingency Plan

(Plan). Much of the information in the existing plan, drafted and approved under Resolution

92-08, is outdated. The Plan would be updated and include the current draft of Ordinance

No. 101 meeting the requirements of legislation passed under SB 814. Staff also recommend

updating the 2015 Urban Water Management Plan (UWMP) to include in Section 6, “Water

Supply Reliability and Water Shortage Contingency Planning,” the new requirements to

comply with SB 814 and avoid any confusion between the two documents.

The Committee discussed the requirement of a Public Hearing and costs associated with

revising the UWMP. The UWMP is a five-year plan and is scheduled to be updated in the

year 2020.

Administration/Executive Committee Meeting

Wednesday, March 8, 2017 – Page 2

Committee recommends updating the Water Shortage Contingency Plan and include

Ordinance No. 101 to meet the requirements of SB814 and incorporate the changes in to the

UWMP in 2020.

6. Automated Metering Infrastructure (AMI) Opt-Out Procedure

Staff presented a draft procedure for customers to have the option of opting-out of the AMI

reading system at their home and/or business. Draft procedure includes the following:

Request to opt-out must be made by the District customer of record. Family

members, neighbors, or landlords cannot act on behalf of another customer.

Customers can indicate their preference to opt-out of the AMI program by mailing in

an opt-out form or by vising the District Office to sign-up in person.

The current cost to opt-out of the AMI program and manually read the customer’s

meter is $25.00 per month. The monthly fee will be reviewed during the Cost of

Service process and modified as necessary to ensure the fee is adequate to cover

costs.

Opt-out customers may only opt-out or change their mind returning to an AMI meter

one time per service address per calendar year. Customer will be charged the cost of

the analog register, time, materials and a 15% administrative fee.

Opt-out customers will not be eligible for the District’s Unanticipated Use Claim

program.

Staff made a recommendation to date the application in the case of revising the application

form.

Committee recommends approving the Automated Metering Infrastructure Opt-Out

Procedure as presented with the inclusion of date on the application form.

7. Director Compensation

A draft Ordinance was presented to adjust Director Compensation to the allowable amount,

including consideration of an annual 5% increase.

Committee recommends approving the Ordinance as presented.

8. Draft Agenda for Regular Board Meeting of March 13, 2017

The Committee reviewed the agenda and made changes as necessary.

9. Future Agenda Items

None.

10. Adjournment

The meeting was adjourned at 4:08 p.m.

A SDRMA

1112 I Street, Suite 300

Sacramento, California 95814-2865

T 916.231.4141 or 800.537.7790 • F 916.231.4111

SPECJAL DISTR.ICT R.\SK MANAGEMENT AUTHOR.ITY Maximizing Protection. Minimizing Risk. • www.sdrma.org

Notification of Nominations - 2017 Election SDRMA Board of Directors

February 3, 2017

Mr. Donald Cortichiato Board President Indian Wells Valley Water District Post Office Box 1329 Ridgecrest, California 93556-1329

Dear Mr. Cortichiato:

Notice of Nominations for the Special District Risk Management Authority (SDRMA) Board of Directors 2017 Election is being provided in accordance with the SDRMA Sixth Amended and Restated Joint Powers Agreement. The following nomination information is enclosed: Nomination Packet Checklist, Board of Director Fact Sheet, Nomination/Election Schedule, SDRMA Election Policy No. 2017-03, sample Resolution for Candidate Nomination and Candidate's Statement of Qualifications Form.

General Election Information - Four Director seats are up for election. The nomination filing deadline is Friday, May 5, 2017. Ballots will be mailed to all SDRMA member agencies in mid-May. Mail-in ballots will be due back to SDRMA Tuesday, August 29, 2017.

Nominee Qualifications - Nominees must be a member of the agency's governing body or a management employee (see SDRMA Election Policy 2017-03, Section 4.1) and be an active member agency of both SDRMA's Property/Liability and Workers' Compensation Programs. Candidates must be nominated by Resolution from their member agency's governing body and complete and submit a "Candidates Statement of Qualifications".

Nomination Documents and Information - Nomination documents (Nominating Resolution and Candidates Statement of Qualifications) and nomination guideline information may also be obtained on SDRMA's website at www.sdrma.org. To obtain documents electronically:

·-- 2017 No,-,t~A~ON & fLEl.TION~ ""

From the SDRMA homepage, click on the "2017 Nomination & Election Information" button. All necessary nomination documents and election information may be downloaded and printed.

I NI ORM·\ f 101';

Term of Office - Directors are elected to 4-year terms. The term of office for the newly elected Directors will begin January 1, 2018 and expire December 31, 2021.

Nomination Filing Deadline- Nomination documents must be received in SDRMA's office no later than 5:00 P.M. on Friday, May 5, 2017.

Please contact SDRMA Chief Operating Officer Paul Frydendal at 800.537.7790, if you have any questions regarding the 2017 SDRMA Board of Director Nominations or the election process.

Sincerely, Spe ial District Risk Management Authority

.~JW

A proud California Special Districts Alliance partner.

California Special Districts Association



T 877.924.CSDA (2732) * F 916.442.7889

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2017 Nomination Packet Checklist

SDRMA BOARD OF DIRECTORS

NOMINATION AND ELECTION GUIDELINES

A. SDRMA

January 5, 2017, marked the official commencement of nominations for the SDRMA Board of Directors. Four seats on the Board of Directors are up for election in August 2017.

For your convenience we have enclosed the necessary nomination documents and election process schedule. Please note that some items have important deadlines. All document contained in this packet, as well as additional information regarding SDRMA Board elections are available on our website www.sdrma.org and/or by calling SDRMA Chief Operating Officer Paul Frydendal at 800.537.7790.

Attachment One: SDRMA Board of Directors Fact Sheet: This document reviews the Board of Directors' Roles and Responsibilities along with other important information.

Attachment Two: SDRMA Board of Directors 2017 Nomination/Election Schedule: Please review this document for important deadlines.

Attachment Three: SDRMA Election Policy No. 2017-03: A Policy of the Board of Directors of the Special District Risk Management Authority establishing guidelines for Director elections.

Attachment Four: Sample Resolution for Candidate Nomination: A resolution of the Governing Body of the Agency nominating a candidate for the Special District Risk Management Authority Board of Directors.

Attachment Five: Candidate's Statement of Qualifications: Please be advised that no candidate statements are endorsed by SDRMA. Candidate's Statements of Qualification will be distributed to the membership with the SDRMA election ballot, "exactly as submitted" by the candidate.

Please complete and return all required nomination and election documents to:

SDRMA Election Committee C/O Paul Frydendal, COO Special District Risk Management Authority 1112 "I" Street, Suite 300 Sacramento, California 95814

Special District Risk Management Authority I A Property/Liability, Workers' Compensation and Health Benefits Program

Attachment One

SDRMA BOARD OF DIRECTORS FACT SHEET

.. SDRMA


Fact Sheet • SDRMA

SDRMA BOARD OF DIRECTORS

ROLE AND RESPONSIBILITIES

Special District Risk Management Authority (SDRMA) is a public entity Joint Powers Authority established to provide costeffective property/liability, worker's compensation, health benefit coverages and comprehensive risk management programs for special districts and other public agencies throughout California. SDRMA is governed by a Board of Directors elected from the membership by the programs' members.

Number of Board Members

Board of Directors' Role

Board of Directors' Responsibilities

Four Seats For this Election

Term of Directors

Board Member Travel Reimbursement

Number of Meetings per Year

Meeting Location

Meeting Dates

Meeting Starting Times

Meeting Length

Average Time Commitment

7-Board Members: SDRMA Board of Directors consists of seven Board Members, who are elected at-large from members participating in either program.

SDRMA Board of Directors provide effective governance by supporting a unified vision, and ensuring accountability, setting direction based on SDRMA's mission and purpose, as well as establishing and approving policy to ensure SDRMA meets its obligations and commitment to its members.

Board Member responsibilities include a commitment to: serve as a part of a unified governance body; govern within Board of Directors' policies, standards and ethics; commit the time and energy to be effective; represent and make policy decisions for the benefit, and in the best interest, of all SDRMA members; support collective decisions; communicate as a cohesive Board of Directors with a common vision and voice; and operate with the highest standards of integrity and trust.

4-Seats: Elections for Directors are staggered and held every two years, four seats during one election and three seats in the following election. Four seats are up for election this year.

4-Year Terms: Directors are elected for 4-year terms. Terms for directors elected this election begin January 1, 2018 and end on December 31, 2021.

Board Members are reimbursed for reasonable travel and lodging in accordance with SDRMA Board Policy Manual 2017-01 and applicable laws and are allowed to claim a stipend of $195 per meeting day or for each day's service rendered as a Member of the Board.

7-Board Meetings Annually: Generally not more than one meeting per month, with an average of seven board meetings per year.

SDRMA office in Sacramento, California.

Typically the first Wednesday afternoon and Thursday morning of the month.

3:00 p.m. and 8:00 a.m.: Meetings are from 3:00 p.m. on Wednesday afternoon until 5:30 p.m. and Thursday from 8:00 a.m. to 10:00 a.m.

4 - 6 hours: Length of meetings on average.

15 - 20 hours: Commitment per month.

"The mission of Special District Risk Management Authority is to provide risk financing and risk management services through a financially sound pool to California public agencies, delivered in a timely and responsive cost efficient manner."


A. Attachment Two SDRMA

SDRMA BOARD OF DIRECTORS 2017 NOMINATION/ELECTION SCHEDULE

Special District Risk Management Authority [ A Property/Liability, Workers' Compensation and Health Benefits Program

2017 Nomination/Election Schedule

S M T W T F S

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TASK TIMELINE

1/5 Board approves Election Schedule

2/3 Mail Notification of Election and

Nomination Procedure to Members in January

90 days prior to mailing Ballots (103 actual days)

5/5 Deadline to return Nominations

5/11 Tentative Election Comm. Reviews

Nominations

5/17-18 Mail Ballots 60 days prior to

ballot receipt deadline (103 actual days)

8/29 Deadline to Receive Ballots

8/30 Tentative Election Committee

Counts Ballots

8/31 Election Committee Notifies Successful

Candidates and Provides Them With

Upcoming Board Meeting Schedule

9/27 Directors' Elect Invited to CSDA Annual

Conf/SDRMA Breakfast/Super Session

1111-2 Directors' Elect Invited to SDRMA

Board Meeting

1/2018 Newly Elected Directors Seated and

Election of Officers

~ SDRMA

Attachment Three

SDRMA BOARD OF DIRECTORS ELECTION POLICY NO. 2017-03

• SDRMA


A SDRN\A '>l'l:Ui\I UI Sl IUl' l H ISi( Mi\,'ii\C EM l:N I l\U l I IOltl l Y

Policy No. 2017-03

A POLICY OF THE BOARD OF DIRECTORS OF SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY ESTABLISHING GUIDELINES FOR DIRECTOR ELECTIONS, DIRECTOR APPOINTMENTS, AND CREATION OF A SUPERVISING ELECTION COMMITTEE

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA) is a joint powers authority, created pursuant to Section 6500, et. seq. of the California Government Code; and

the Board of Directors recognizes that it is in the best interest of the Authority and its members to adopt a written policy for conducting the business of the Board; and

establishing guidelines for Director elections and appointments will help ensure a process that is consistent for all nominees and candidates, will promote active participation by SDRMA members in the election/appointment process, and will help ensure election/appointment of the most qualified candidate(s); and

the Bylaws provide the Board with the option of conducting the election using a mail-in ballot process; and

the Board of Directors of SDRMA has an overriding and compelling interest in insuring the accuracy of the election/appointment process of its Board members through the creation of an election committee;

NOW, THEREFORE, it is the policy of the Board of Directors of SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY, until such policy shall have been amended or rescinded, that the following procedures shall be followed when conducting Director elections or filling a Director vacancy by appointment:

1.0. Election Schedule

1.1. Not later than the first Board meeting of each election year, the Board of Directors shall approve an election schedule based on the following criteria and time frames.

2.0. Election Committee

2.1. The Board of Directors herein establishes an election committee with the following composition, duties and responsibilities; The five (5) members of the Election Committee shall include two presently sitting members of the Board of Directors of SDRMA whose seats are not up for election, the Chief Operating Officer of SDRMA, and the CPNauditor regularly used and retained by SDRMA at the time of counting ballots of and for an election to the Board of Directors. For good reason found and stated, the Board of Directors of SDRMA may appoint any CPNauditor who, in the discretion of the Board of Directors, would appropriately serve the Election Committee. The General Counsel for SDRMA shall also sit as a member of the Election Committee with the additional obligation of providing legal advice to the balance of the Committee as legal questions may arise.

3.0. Member Notification of Election

3.1. Authority staff shall provide written notification, of an election for the Board of Directors, to all member agencies during January of each election year. Such written notification shall be provided a minimum of ninety (90) days prior to the distribution of ballots and shall include; (1) the number of Director seats to be filled by election; (2) a copy of this nomination and election procedure; and (3) an outline of nomination/election deadline dates.

Special District Risk Management Authority Director Election and Appointment Policy

Page 1 of 6 February 2, 2017

SD SPECIAL DIS-fl\ICJ RISK MANAGEMfN"f AUTllORITY

Policy No. 2017-03

4.0. Qualifications

4.1. A candidate seeking election, re-election or appointment to SDRMA's Board of Directors must be a member of the Governing Body or a management employee of an SDRMA member participating in both the Property/Liability and Workers' Compensation Programs. To qualify as a "management employee," the candidate must be a management-level (as determined by the Governing Body) employee whose wages are reported to the IRS on a "W-2" form. Only one (1) representative from any Member may serve on the Board of Directors at the same time. [Per Bylaws, Article 11, (2) (b)J

4.2. Each nominated candidate must submit a properly completed "Statement of Qua lifications" (required form attached) with an original signature (electronic signatures are not acceptable) on or before the filing deadli11e in May in order for the candidate's name to be placed 011 the official ballot. A candidate shall provide responses to al! questions on the candidate•s 11 Statement of Qualifications 11

• Each nominated candidate's "Statement of Qualifications" must be filed in SDRMA's office on or before the aforementioned deadline by: (1) personal delivery; (2) U.S. mail; or (3) courier. When ballots are mailed to the membership, each candidate's "Statement of Qualifications" form will be distributed to the membership exactly as submitted by the candidate to SDRMA. However, any attachments submitted by the candidate(s) with the Statement of Qualifications will not be sent by SDRMA with the ballots to any members.

4.3. If a nominated candidate elects not to use the provided form "Statement of Qualifications," and prepares instead the candidate's own completed form, the candidate's form must include the title "Statement of Qualifications" and contain exactly all information required and requested by the provided form.

NOTE: The candidate's "Statement of Qualifications" form must be submitted as a part of the nominating process. When ballots are mailed to the membership, each candidate's "Statement of Qualifications" form will be distributed "exactly as submitted" to SDRMA, except that any attachments submitted by the candidate will not be sent to any SDRMA members.

4.4. A candidate who does not submit a Candidate's Statement of Qualifications that complies with Section 4.2 or 4.3 will be disqualified by the SDRMA Election Committee.

5.0. Nominating Procedure

5.1. Candidates seeking election or reelection must be nominated by action of their respective Governing Body. Only one (1) candidate may be nominated per member agency and one (1) candidate shall not represent more than one (1) member agency. A resolution from the candidate's district/agency Governing Body nominating the candidate must be received by the Authority on or before the scheduled date in May. (A sample of the resolution is enclosed). Actual receipt by the Authority on or before the scheduled deadline date in May is requ ired. The resolution nominating the candidate may be hand-delivered to the Authority or sent by U.S. mail. In the event a candidate is nominated by two (2) or more member agencies, he or she shall represent the member agency whose nominating resolution is first received by the Authority. The other member agency or agencies that nominated the candidate shall be entitled to select a replacement nominee as long as a resolution nominating the replacement is received by the Authority prior to the scheduled deadline date.

5.2. A member may not nominate a candidate unless that member is participating in both the Property/Liability and Workers' Compensation Programs and is in "good standing" on the date the nominations are due. "Good standing" is defined as no accounts receivable due to SDRMA which is more than ninety (90) days past due.

5.3 . No earlier than the day after the deadline for receipt of nominations, the Election Committee, as hereinabove defined and comprised, shall review all nominations received from members, and will reject any nominations that do not meet all of the qualifications specified and set forth in this policy. The Election



A SDRMA Sl'lCIAL DISTIUCl RISI< MANi\Cd~ MEN r AU fl IOlll IY

Policy No. 2017-03

Committee's decisions regarding the qualification of nominees are final. Following the Election Committee's review of all nominations, the Election Committee shall direct that a ballot be prepared stating and listing all of the qualified nominees. The ballot of qualified nominees shall be distributed to the membership for election by mail as described below.

5.4. Upon verification or rejection of each nominee by the Election Committee, staff will mail acknowledgment to both the nominee and the district/agency of its acceptance or rejection as a qualified nominee for election.

5.5. A nominee requesting that his/her nomination be withdrawn prior to the election, shall submit such requests in writing to SDRMA's office a minimum of three (3) days prior to the scheduled date for mailing the ballots. After that date, all qualified nominees names shall appear on the ballot mailed to the membership.

6.0. Terms of Directors

6.1. The election of directors shall be held in each odd-numbered year. The terms of the directors elected by the Members will be staggered. Four directors will se.rve four-year terms, to end on December 31 of one odd-numbered year. Three directors will serve four-year terms, to end on December 31 of the alternate offnumbered year. [Per Bylaws, Article II, (3), paragraph 1].

7.0. Campaigning

7.1. SDRMA staff will mail each qualified candidate's "Statement of Qualifications", "exactly as submitted" by the candidate with the ballots to the membership.

7.2. Candidates, at their own expense, may distribute additional information to member agency(s) after the ballots have been mailed and prior to the election.

7 .3. SDRMA staff is prohibited from actively promoting a candidate or participating in the election process while on Authority premises.

7.4. SDRMA staff may provide member information, mailing lists, financial reports or operational data and information, that is normally available through the Public Records Act, to candidates to assist them in their research and campaigning. In addition to obtaining such information under the Public Records Act, candidates may request SDRMA staff prepare mailing labels for the distribution of campaign materials to member agencies. Under existing policy, charges will apply for this service. The SDRMA logo is trademarked for use by SDRMA only. Neither the logo, nor any other Trademark of SDRMA may be used in any campaign literature. No campaign literature is to imply support of any candidate by SDRMA.

7.5. SDRMA election mailings to the membership, including ballots and candidates' "Statement of Qualifications", shall be sent via first class mail.

8.0. Limitations on Camoaigning

8.1. As used in this section the following terms have the following meanings:

"Campaign Activity" means any activity that expressly advocates the election or defeat of a candidate or provides direct support to a candidate for his or her candidacy. "Campaign activity" does not include the incidental and minimal use of public resources, such as equipment or office space, for campaign purposes or the use of public resources to nominate a candidate or vote in any Board of Directors election.



SD ~l'ICli\1 OIS .IRICI IUSKMANACIMl.Nl AllrllOIUIY

Policy No. 20 17-03

"Candidate" means an individual who has been nominated by the Member Agency to have his or her name listed on the ballot for election to the Board of Directors.

"Expenditure" means a payment of Member Agency funds that is used for communications that expressly advocate the election or defeat of a clearly identified candidate. "Expenditure" does not include the use of public funds to nominate a candidate or vote in any Board of Directors election.

"Public resources" means any property or asset owned by the Member Agency, including, but not limited to, land, buildings, facilities, funds, equipment, supplies, telephones, computers, vehicles, travel, and Member Agency-compensated time.

8.2. An officer, official, employee, or consultant of a Member Agency may not expend or authorize the expenditure of any of the funds of the Member Agency to support or oppose the election or defeat of a candidate for the Board of Directors.

8.3. No officer, official, employee, or consultant of a Member Agency shall use or permit others to use public resources for campaign activity.

8.4. At any time during an election campaign , if a Member Agency or its officers, officials, employees or consultants violate this section, that Member Agency shall be inel igible to nominate a candidate for the Board of Directors election in which the violation occurred. Any candidate of an offending Member Agency shall be deemed to have withdrawn his or her candidacy. Prior to declaring a Member Agency ineligible to nominate a candidate or a specific candidate's candidacy withdrawn, the Elections CommittP.P. shAll holrl A hearing to determine whether or not a violation of this section occurred. The hearing shall be conducted pursuant to reasonable procedures that the Elections Committee shall prescribe, provided that the affected Member Agency or candidate shall have an opportunity to dispute the violation . At the conclusion of the hearing, the Elections Committee shall determine by a majority vote whether the violation occu rred.

9.0. Balloting

9.1. A ballot containing nominees for the Board of Directors, accepted and approved by the Election Committee, shall be mailed by first class mail, lo each SDRMA rnernber agency, except as provided in Section 9.2 below, no less than sixty (60) days prior to the deadline for receiving ballots and the closing date for voting. Ballots shall show the date and time the ballots must be received in SDRMA's office. A self-addressed, stamped, return envelope shall be mailed with each ballot.

9.2. In the event that the number of qualified/approved nominees is equal to or less than the number of director seats up for election, the mailing of the ballots as outlined in Section 9.1 sha ll be waived .

9.3. Only those qualified nominees approved by the Election Committee will be eligible candidates on the ballot. Write-in candidates shal l not be accepted.

9.4. It is required that the Governing Body of each member vote on behalf of their agency (sample Resolution enclosed) and the ballot MUST be signed by the agency's Presiding Officer.

9.5. A member may not vote unless the member was a member of the Authority in "good standing" on or before the nomination due date for the pending election . "Good standing" is defined as no accounts receivable due to SDRMA which is more than ninety (90) days past due.

9.6. A member may cast only one (1) vote for the same candidate. By way of example, if there are four (4) candidates on the ballot, a member may not cast two (2) to four (4) votes for any single candidate. Any ballot casting more than one (1) vote for the same candidate will be considered void.



SD Sl'l:CIAL lJl<;Tl\ICl RISK MANAGlMfNl AUTHORITY

Policy No. 2017-03

9.7. A member may vote by using the official ballot provided by SDRMA, or a copy of SDRMA's original ballot, or a reasonable duplicate prepared by the member agency. Whichever of the three foregoing formats is used, the ballot must contain an original signature and confirmation that the ballot was approved at a public meeting of the agency's Governing Body. Ballots submitted without an original signature and/or without confirmation that the form of the ballot was approved at a public meeting of the agency's Governing Body will be considered void.

9.8. Ballots may be returned using either hand-delivered or mailed in ballots - faxed or e-mailed ballots will not be accepted. Mailed in ballots must be addressed to, and hand-delivered ballots must be delivered to, the Special District Risk Management Authority office presently located at 1112 I Street, Suite 300, Sacramento, California 95814-2865.

9.9. Any ballot received after the specified deadline will not be counted and will be considered void .

10.0. Election Results

10.1. All ballots will be opened and counted at SDRMA's office only after the deadline for receiving ballots. Ballots will be opened by SDRMA's Election Committee, no more than five (5) days after the closing deadline. Candidates receiving the highest number of votes shall be declared the elected director(s).

10.2. In the event of a tie, a coin toss shall be used to determine the elected director. The coin toss shall be conducted by the Election Committee at the time and place of the conclusion of counting ballots.

PROCEDURE: In the event more than two (2) candidates tie, the coin toss shall be between two (2) candidates at a time based on the order in which their name appeared on the ballot This process shall be repeated, as needed, in cases where there are more than two (2) candidates.

10.3. Excluding tie votes, within five (5) days after the ballots are opened and tabulated Authority staff shall advise the candidates and their respective agency in writing of the final election results. Copies of the results shall also be mailed/distributed to SDRMA's Board of Directors, staff and consultants and published in the first available CSDA newsletter.

10.4. If a director-elect withdraws after the election or fails to accept the Director seat prior to December 31, the Board shall name a new director-elect by going back to the ballots and awarding the seat to the candidate receiving the next highest number of votes during the election.

10.5. Staff shall invite newly elected director(s) to attend the Annual Membership meeting and all scheduled Board meeting(s) after confirmation of election results until the director(s) elect assume office. Director(s) elect will be reimbursed for expenses, except for director stipends, in accordance with approved director reimbursement policy (copy of policy shall be provided to newly elected directors).

10.6. A member or candidate dissatisfied with the election result may, within ten (10) days after the ballots are opened and tabulated, file with the Authority a written challenge and appeal. The challenge and appeal must clearly set forth the complaint and any and all facts in support of the challenge and appeal. Within ten (10) days after the ballots are opened and tabulated, the challenge and appeal shall be delivered and received by the Authority. Within five (5) days of receipt of the challenge and appeal, the Authority shall deliver the same to the Election Committee for decision. The Election Committee shall have absolute authority for deciding the challenge and appeal. Notice of the decision of the Election Committee shall be provided to the party filing the challenge and appeal within ten (10) days.



SD ~l'ECl/\l DISl IUCl RISK MAN AC I Ml NI AIJl HORI I Y

Policy No. 2017-03

11.0. Director Vacancy

11.1. If a director vacancy(s) occurs (Note 1), appointment of a replacement director for the balance of the unexpired term will be made by the remaining members of the SDRMA Board . In order to accomplish this in an orderly and consistent manner, when a vacancy(s) of an elected Director(s) occurs, the SDRMA Board of Directors, after discussion and consideration, shall, when deemed appropriate, instruct staff to:

a) notify all then member entities that a vacancy has occurred; and b) said notice shall refer to the applicable Article in the By-laws in advising member entities and their

eligible candidates of the steps to take to apply for appointment; and c) the SDRMA Board shall establish the closing date for the receipt of applications; and d) candidates shall submit the following, by the date specified in the notice:

i) a letter of interest; and ii) a resume, with particular emphasis on the candidate's knowledge of special districts and

risk 111anagement; and iii) a resolution from, or a letter approved by, the candidate's Governing Body nominating the

candidate; and e) the Election Committee shall review all applications received, and shall reject any that do not meet

all of the qualifications specified and set forth in this policy; and f) upon verification or rejection of each application by the Election Committee, staff will mail

acknowledgement to both the applicant and the district/agency of its acceptance or rejection of the applicant as a qualified candidate for appointment; and

g) candidates shall be interviewed at the next regularly scheduled meeting of the SDRMA Board of Directors following the date of closure for the applications. Interviews shall be in person, or if an unforeseen emergency arises, the interview may be by telephone at the same scheduled time; and

hl the SDRMA Board shall make the appointment without undue delay, but need not act at the same meeting.

Note 1: If the Director vacancy occurs within nine (9) months after the date the ballots were counted and certified by the Election Committee or within nine (9) months after a candidate was appointed to fill a vacancy, then the Board shall have the option to interview and appoint the candidate(s) who did not receive sufficient votes to be elected OR to interview and appoint from the pool of candidates from 11. l.g) above. If the Director vacancy occurs in an election year after the Notification of Election is sent to the members, the Board may determine to fill the vacancy by appointing the candidate who receives the next highest number of votes in the election. If the Board determines in its sole discretion that none of these options is appropriate, then staff shall be instructed to proceed with the process described above in steps 11. l a) to h).

Revised and adopted this 2"d day of February 2017, by the Board of Directors of Special District Risk Management Authority, at a regular meeting thereof.

This Policy No. 2017-03 supercedes Policy No. 2015-01 and all other policies inconsistent herewith.

APPROVED:

Ou-,t;r-~ J#~Bracy, President Board of Directors


ATTEST:

~ Chief Executive Officer


Attachment Four

SAMPLE RESOLUTION FOR

CANDIDATE NOMINATION

Available for download in Microsoft Word file format visit our website at www.sdrma.org

... SDRMA


[AGENCY NAME]

RESOLUTION NO.

A RESOLUTION OF THE GOVERNING BODY OF THE [AGENCY NAME] NOMINATING

[CANDIDATE'S NAME] AS A

CANDIDATE FOR ELECTION TO THE SPECIAL DISTRICT RISK MANAGEMENT

AUTHORITY BOARD OF DIRECTORS

WHEREAS, the Special District Risk Management Authority (SDRMA) is a Joint Powers Authority formed under California Government Code, Section 6500 et.seq., for the purpose of providing risk management and risk financing for California Special Districts and other local government agencies; and

WHEREAS, the Joint Powers Agreement (JPA) and Bylaws of SDRMA set forth director qualifications, terms of office and election requirements; and

WHEREAS, the Board of Directors of SDRMA established procedures and guidelines for the Director Election process; and

WHEREAS, the Board of Directors of SDRMA established a policy requiring candidates seeking election to the SDRMA Board of Directors to be: 1) a member of the agency's governing body or management employee per SDRMA Election Policy 2017-03, Section 4.1 and be an active member agency of both SDRMA's Property/Liability and Workers' Compensation Programs, and 2) be nominated by Resolution of their member agency's governing body, and 3) each nominated candidate must submit a completed and signed "Candidate's Statement of Qualifications" on or before the May 5 filing deadline in order for the candidate' s name to be placed on the official ballot.

NOW, THEREFORE, BE IT RESOLVED:

l. The governing body of [AGENCY NAME] nominates [CANDIDATE'S NAME], its [POSITION TlTLEl, as a candidate for the Board of Directors of the Special District Risk Management Authority.

2. [ONLY IF CANDIDA TE IS NOT A MEMBER OF THE AGENCY'S GOVERNING BODY: The governing body of [AGENCY NAME] has determined that [CANDIDATE'S NAME] is a management employee for purposes of SDRMA Election Policy 2017-03, Section 4.1].

3. The governing body of [AGENCY NAME] further directs that a copy of this Resolution be delivered to SDRMA on or before the May 5, 2017 filing deadline.

ADOPTED this [DATE] of [MONTH/YEAR] by the Governing Body off AGENCY NAME] by the following roll call votes:

AYES: [LIST NAMES of GOVERNING BOARD VOTES]

NAYES:

ABSTAIN: " ABSENT:

APPROVED ATIEST

President - Governing Body Secretary

Attachment Five

CANDIDATE'S STATEMENT OF

QUALi FICATIONS

Available for download in Microsoft Word file format visit our website at www.sdrma.org

.. SDRMA


Special District Risk Management Authority Board of Directors

Candidate's Statement of Qualifications

This information will be distributed to the membership with the ballot, "exactly as submitted" by the candidates - no attachments will be accepted. No statements are endorsed by SDRMA.

Nominee/Candidate District/ Agency

Work Address

Work Phone ___________ Home Phone ___________ _

Why do you want to serve on the SDRMA Board of Directors? (Response Required)

What Board or committee experience do you have that would help you to be an effective Board Member? (SDRMA or any other organization) (Response Require<!)

Page 1 of 2 November 2012

Special District Risk Management Authority Board of Directors

Candidate's Statement of Qualifications

What special skills, talents, or experience (including volunteer experience) do you have? (Response Required)

What is your overall vision for SDRMA? (Response Required)

I certify that I meet the candidate qualifications as outlined in the SDRMA election policy. I further certify that I am willing to serve as a director on SDRMA's Board of Directors. I will commit the time and effort necessary to serve. Please consider my application for nomination/candidacy to the Board of Directors.

Candidate Signature ________________ Date _________ _

Page 2 of 2 November 2012

7.B.2.

7.B.3.

ORDINANCE NO. 101 ORDINANCE OF THE BOARD OF DIRECTORS OF THE INDIAN WELLS VALLEY

WATER DISTRICT, KERN AND SAN BERNARDINO COUNTIES, CALIFORNIA, ADOPTING REGULATIONS AND PENALTIES TO IDENTIFY AND DISCOURAGE

EXCESSIVE WATER USE PURSUANT TO SENATE BILL 814. ________________________________________________________________

WHEREAS, the Indian Wells Valley Water District (District) is a County Water District formed and operating under and pursuant to California Water District Law (California Water Code §§ 30000, et seq.); and WHEREAS, pursuant to Water Code § 31001, the District is authorized to perform all acts necessary to fully carry out its functions; and WHEREAS, pursuant to Water Code § 31035, the District may undertake a water conservation program to reduce water use; and WHEREAS, Water Code Sections 365-367 (Senate Bill 814) became effective January 1, 2017 requiring urban retail water suppliers to establish a method to identify and discourage excessive water use by a certain class of customers. NOW THEREFORE, BE IT ORDAINED by the Board of Directors of the Indian Wells Valley Water District, as follows: SECTION 1. PURPOSE The purpose of this Ordinance is to establish a method to identify and discourage Excessive Water Use by, among other things, defining local Excessive Water Use during a Drought State of Emergency or Local Water Supply Shortage, as defined herein, establishing fines for violations of the Ordinance, establishing a process for nonpayment of the fine and a process and conditions for the appeal of a fine imposed pursuant to this Ordinance. SECTION 2. APPLICATION This Ordinance applies to Residential Customers in single-family residences, customers in a multi-unit housing complex in which each unit is metered individually, and to commercial customers. This Ordinance shall apply either during a Drought State of Emergency or Local Water Supply Shortage as defined herein.

1

SECTION 3. DEFINITIONS A. “Drought State of Emergency” means either:

a. a period for which the Governor has issued a proclamation of a state of

emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on statewide drought conditions to an urban retail water supplier that has moved to a stage of action in response to a local water supply shortage condition under the District’s contingency plan pursuant to Water Code § 10632(a)(1) that requires mandatory water use reductions; OR

b. a period for which the Governor has issued a proclamation of a state of

emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on local drought conditions.

B. “Commercial Customer “means a business or individual who provides a service or

sells products for profit.

C. “Excessive Water Use” means usage in excess of Tier 2 of the District’s rate structure, i.e. usage in Tiers 3 and 4.

D. “Hundred Cubic Feet” or HCF, means 748 gallons. E. “Local Water Supply Shortage” means a period in which the District has moved to

a stage of action in response to a local water supply shortage condition under the District’s contingency plan pursuant to Water Code § 10632(a)(1) that requires mandatory water use reductions

F. “Residential Customer” means a single-family residence or a customer in a multi-

unit housing complex in which each unit is metered individually. G. “Tier 2” means Customer usage as defined in the District’s Water Sales and Service

Policy Manual, Ordinance 96 (refer to Exhibit A). H. “Tier 3” means Customer usage as defined in the District’s Water Sales and Service

Policy Manual, Ordinance 96 (refer to Exhibit A). I. “Tier 4” means Customer usage as defined in the District’s Water Sales and Service

Policy Manual, Ordinance 96 (refer to Exhibit A).

2

J. “Urban Retail Water Supplier” means a water supplier, either publicly or privately owned, that directly provides potable municipal water to more than 3,000 end users or that supplies more than 3,000 acre-feet annually at retail for municipal purposes.

SECTION 4. GOVERNOR DECLARED DROUGHT STATE OF EMERGENCY During a period for which the Governor has issued a proclamation of a Drought State of Emergency, the following will apply:

A. Residential and Commercial water use in excess of Tier 2 of the District’s rate structure in a single billing cycle shall be considered Excessive Water Use.

B. Residential and Commercial water use in excess of Tier 2 of the District’s rate

structure in a single billing cycle will be assessed a fine of 1% of the total Tier 3 and Tier 4 use during that billing cycle until the Drought State of Emergency is declared over by proclamation of the Governor or like action.

SECTION 5. LOCAL WATER SUPPLY SHORTAGE CONDITION During a period in which the District has moved to a stage of action in response to a Local Water Supply Shortage, the following will apply:

A. Residential and Commercial water use in excess of Tier 2 of the District’s rate structure in a single billing cycle shall be considered Excessive Water Use.

B. A Residential Customer or Commercial Customer exceeding Tier 2 usage in a

single billing cycle shall be assessed a fine of $100 for the initial HCF of usage in Tier 3. An additional fine of $10 for each HCF of usage over the initial Tier 3 HCF of usage shall be assessed in addition to the base rate.

C. For each consecutive billing cycle that a Residential Customer’s or Commercial

Customer’s usage exceeds Tier 2 usage, the previous fine shall be increased by $100 for the initial HCF of usage in Tier 3. The additional $10 fine for each HCF of usage over the initial Tier 3 HCF of usage shall similarly increase $10 in addition to the base rate. For example, a second consecutive billing cycle will result in an Excessive Water Use fine of $200 for the initial HCF of Tier 3 usage. For each additional HCF of Tier 3 and 4 usage, a penalty of $20 shall be assessed in addition to the base rate. A third consecutive billing cycle will result in an Excessive Water Use fine of $300 for the initial HCF of Tier 3 usage. For each additional HCF of Tier 3 and 4 usage, a penalty of $30 shall be assessed in addition to the base rate. The fines shall increase in increments of $100 and $10, respectively, up to a maximum of $500 for the initial HCF of Tier 3 usage and

3

$50 for each additional HCF over the initial HCF of Tier 3 usage in addition to the base rate.

D. Any fine resulting from violation of this Ordinance will be added to the

customer’s water bill and is due and payable with that water bill. E. Non-payment of a fine shall be addressed with due process in mind.

SECTION 6. APPEAL A. A Residential Customer or Commercial Customer determined to be in violation of this Ordinance may appeal the imposition of the fine for Excessive Water Use either by submitting a written appeal or by requesting a hearing with the Administrative and Executive Committee of the Board of Directors. The hearing shall be scheduled within thirty (30) calendar days of the request. The hearing shall be attended by the District’s General Manager or a designated representative of the General Manager. B. The Residential Customer or Commercial Customer shall be provided with an opportunity to provide evidence that there was no excessive use of water or of a bona fide reason for the excessive use, as determined by the District. The District will provide the Residential Customer or Commercial Customer with documentation demonstrating the excessive water use. C. The District’s General Manager or a designated representative of the General Manager shall mail the Residential Customer or Commercial Customer a written decision within ten (10) calendar days of the hearing. If the Residential Customer or Commercial Customer is dissatisfied with the outcome of the hearing, the Residential Customer or Commercial Customer may request the matter be placed on the agenda of the District’s Regularly Scheduled Board Meeting. The Residential Customer or Commercial Customer may then present his or her position to the Board of Directors. The Board’s determination shall be final. SECTION 7. EFFECTIVE DATE

A. The foregoing Ordinance shall become effective on February ___, 2017 upon adoption of same by the Board of Directors of the District. SECTION 8. PUBLICATION

A. The Secretary is hereby directed to cause this Ordinance to be published once in full in a newspaper of general circulation, printed, published and circulated within the District.

4

ADOPTED this___ day of ____________, 2017. ________________________________ President of the Indian Wells Valley Water District Board of Directors ATTEST _________________________________ Secretary of the Indian Wells Valley Water district Board of Directors (SEAL)

5

Ordinance 101Exhibit A

Residential

All Meter Sizes

Tier 1 0 - 7Tier 2 7.01 - 24Tier 3 24.01 - 45Tier 4 45.01 and Over

3/4" Meter 1" Meter 1-1/2" Meter 2" Meter

Tier 1 0 - 7 0 - 12 0 - 23 0 - 37Tier 2 7.01 - 24 12.01 - 40 23.01 - 80 37.01 - 128Tier 3 24.01 - 45 40.01 - 75 80.01 - 150 128.01 - 240Tier 4 45.01 and Over 75.01 and Over 150.01 and Over 240.01 and Over

3" Meter 4" Meter 6" Meter 8" Meter

Tier 1 0 - 75 0 - 117 0 - 233 0 - 373Tier 2 75.01 - 256 117.01 - 400 233.01 - 800 373.01 - 1280Tier 3 256.01 - 480 400.01 - 750 800.01 - 1500 1280.01 - 2400Tier 4 480.01 and Over 750.01 and Over 1500.01 and Over 2400.01 and Over

Commercial

Commercial

per Ordinance 96 - Water Sales & Service Policy ManualUsage Allotment per Tier in Hundred Cubic Feet (HCF)

Indian Wells Valley Water District

6

7.B.4.

Indian Wells Valley Water District Automated Metering Infrastructure (AMI) Opt-Out Program

Proposed March 13, 2017

Purpose of Utilizing Automated Metering Infrastructure The Indian Wells Valley Water District (“IWVWD” or “District”) plans to fully utilize Neptune’s R900 automated metering infrastructure (“AMI”) technology for meter-reading and began a pilot project February 2017. AMI meters record usage minute by minute, and the information is electronically transmitted to the IWVWD. In addition to automated leak detection, the primary benefits of AMI include reduced staff time needed to read meters and therefore, more staff time to conduct meter-box maintenance and repair and assist customers with water audits. Automated leak detection is critical to the District’s mission to save water and avoid unexpectedly high water bills for customers by early detection of unnecessary water loss such as from running toilets, incorrectly programmed sprinkler systems and broken pipes. AMI Opt-Out Program Some IWVWD customers have expressed concerns about AMI safety* and privacy, so the District is offering the AMI Opt-Out Program. The AMI Opt-Out Program is available to any customer who chooses not to have an AMI meter installed or maintained at their home or place of business. Any customer may opt-out. However, the request must be made in writing by the IWVWD customer of record. Family members, neighbors, or landlords cannot act on behalf of another customer. Customers can opt-out of the AMI program by submitting an opt-out form to the IWVWD District Office. The current cost to opt-out of the AMI program is $25.00 per month. This monthly fee covers the costs to manually read your meter and manually input reads into the billing system on a monthly basis. The monthly fee will be reviewed during the cost of service process and modified as necessary to ensure the fee is adequate to cover costs. Customers may only opt-out or convert back to an AMI meter one time per service address per calendar year. Customer will be charged the cost of the analog register, installation time, materials and a 15% administrative fee. Opt-out customers will not be eligible for the IWVWD Unanticipated Use Claim program. * Customers concerned about AMI safety may acquire a copy of Neptune’s Frequently Asked Questions about R900 Radio Frequency (RF) Emissions from IWVWD.

INDIAN WELLS VALLEY WATER DISTRICT AMI OPT-OUT PROGRAM APPLICATION

Indian Wells Valley Water District offers customers the ability to opt-out of the AMI program for an-going monthly fee (currently $25).

Customer Information

Customer Name Service Address Mailing Address (if different from Service Address) Daytime Phone

Email

Terms & Conditions I, ________________________________, am the customer of record at ___________________________, Ridgecrest, CA 93555. I am electing to opt-out of the Indian Wells Valley Water District’s AMI program. I understand that in so doing, I agree to pay the on-going monthly meter reading fee. I acknowledge and understand that I will not be eligible to participate in the IWVWD Unanticipated Use Claim program. If I elect to convert back to the AMI program, I will be required to pay the cost of the analog register, installation time, materials and a 15% administration fee.

__________________________________________ ________________________________________ Customer Signature Date

For District use only: Initial Here When Task is Completed

Verify the applicant is the customer of record

Set up the monthly meter reading fee in customer’s Springbrook account

Send Field Services a service request to verify the customer has an analog meter

Notate the account in Springbrook that it is an AMI opt-out

Proposed March 13, 2017

The cost calculation to manually read the meters is as follows: Assumptions based on actual time and costs:

• 28 minutes to get a read from the east end of town • 21 minutes to get a read from the west end of town • 15 minutes to get a read from the center of town • 8 minutes to get a read from across the street • 18 minutes average time to get a read • High salary and benefits cost = $60.41/HR • Medium salary and benefits cost = $49.25/HR • Low salary and benefits cost = $41.95/HR • Average department salary and benefits cost = $50.54/HR • Truck cost per hour = $20.35/HR • Admin Charge = 15% of total cost

Possible Fees:

• High Cost Maximum Time = $43.65 ((($60.41 + $20.35) x .47 hours) x 1.15) • Medium Cost Maximum Time = $37.62 ((($49.25 + $20.35) x .47 hours) x 1.15) • Low Cost Maximum Time = $33.67 ((($41.95 + 20.35) x .47 hours) x 1.15) • Average Cost Maximum Time = $38.32 ((($50.54 + $20.35) x .47 hours) x 1.15)

• High Cost Average Time = $27.86 ((($60.41 + $20.35) x .30 hours) x 1.15) • Medium Cost Average Time = $24.01 ((($49.25 + $20.35) x .30 hours) x 1.15) • Low Cost Average Time = $21.49 ((($41.95 + 20.35) x .30 hours) x 1.15) • Average Cost Average Time = $24.46 ((($50.54 + $20.35) x .30 hours) x 1.15)

• Average Cost based on the average of Maximum Time and Average Time = $31.39 (($38.32 + $24.46)/2)

After staff and Board discussion, instead of basing the monthly fee at the maximum cost to read manually read meters ($43.65) or even the average cost and maximum time to read meters ($38.32), the monthly fee will be set at $25.00 which represents the average time it takes to read meters throughout the District and the average departmental cost of labor.

7.B.5.

ORDINANCE NO. 102

ORDINANCE OF THE BOARD OF DIRECTORS OF THE INDIAN WELLS VALLEY WATER DISTRICT, KERN AND SAN BERNARDINO COUNTIES, CALIFORNIA, ADOPTING RULES AND REGULATIONS GOVERNING COMPENSATION RECEIVED BY MEMBERS OF THE BOARD OF DIRECTORS FOR SERVICES PROVIDED ON BEHALF OF THE INDIAN WELLS VALLEY WATER DISTRICT.

WHEREAS, California Government Code Section 20202 governs the compensation that may be received by members of the Board of Directors (“Directors”) of the Indian Wells Valley Water District (“District”) for services provided on behalf of the District; and

WHEREAS, the Directors wish to update and clarify the circumstances when a Director

may be compensated for the Director’s time in performing services on behalf of the District.

NOW, THEREFORE, BE IT ORDAINED, by the Board of Directors of the Indian Wells Valley Water District as follows:

Section 1. Resolution No. 15-03 is hereby rescinded in its entirety. Section 2. Director compensation shall be $100 for each day’s service rendered as a Director on behalf of the District. Services rendered shall include: (a) Attendance at a District Board Meeting or Board Workshop; or (b) Attendance at a District Standing Committee or District Ad Hoc Committee; or (c) Attendance as a Director or representative of the District at a Board Meeting, Board

Workshop, Standing Committee or Ad Hoc Committee of the Indian Wells Valley Groundwater Authority; or

(d) Attendance at a conference or educational activity conducted in compliance with California Government Code Section 54952.2, including, but not limited to, required ethics training and sexual harassment training.

Section 3. A Director may only receive compensation for attendance at occurrences not specified in Section 2 if the Directors adopt, in a public meeting, a written policy specifying other types of occasions that constitute official duties for which a Director may receive compensation. Section 4. Director compensation per day shall be increased in an amount equal to five percent (5%), for each calendar year following the operative date of the last adjustment pursuant to this Ordinance.

1

Section 5. In no event shall members of this Board receive compensation for more than ten (10) days’ service in any calendar month.

Section 6. Staff shall provide to the entire Board of Directors, a monthly report which shall include all meetings attended by each Board member for which such Board member receives compensation, and the amount thereof. Section 7. The foregoing Ordinance shall become effective on March 13, 2017 upon adoption of same by the Board of Directors of the District.

Section 8. The Secretary is hereby directed to cause this Ordinance to be published once in full in a newspaper of general circulation, printed, published and circulated within the District.

ADOPTED this 13th day of March, 2017.

All the foregoing being on the motion of seconded by , and authorized by the following vote, namely: AYES: NOES: ABSENT: ABSTAIN: I HEREBY CERTIFY that all the foregoing ordinance is the ordinance of the Indian Wells Valley Water District as duly passed and adopted by said Board of Directors at a legally convened meeting held on the 13th day of March, 2017. WITNESS my hand and the official seal of said Board of Directors this 11th day of January, 2016.

President of the Indian Wells Valley Water District Board of Directors

ATTEST

2

Secretary of the Indian Wells Valley Water District Board of Directors

(SEAL)

3

STATE OF CALIFORNIA ) COUNTIES OF KERN ) AND SAN BERNARDINO )

I, DONALD M. ZDEBA, Secretary of the Board of Directors of the Indian Wells Valley Water District, DO HEREBY CERTIFY, as follows:

The foregoing Ordinance is a full, true and correct copy of Ordinance No. 102, duly adopted at a Regular Meeting of the Board of Directors of said District, duly and held at the regular meeting place of the Board on the 13th day of March, 2017, for which all of the members of said Board of Directors had due notice and at which a majority of the Board of Directors were present. All the foregoing being on the motion of Vice-President Brown seconded by Director Corlett, and authorized by the following vote, namely: AYES: NOES: ABSENT: ABSTAIN: I have carefully compared the foregoing with the original Minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of the original ordinance adopted at said Hearing and entered into said Minutes.

Ordinance No. 102 has not been amended, modified or rescinded since the date of its adoption on March 13, 2017, and the same is now in full force and effect. WITNESS my hand and the official seal of said Board of Directors this 13th day of March, 2017. .

Secretary of the Indian Wells Valley Water District and of the Board of Directors thereof.

President of the Indian Wells Valley Water District and of the Board of Directors thereof. (SEAL)

4

1

RESOLUTION NO. 17-02

RESOLUTION OF THE INDIAN WELLS VALLEY WATER

DISTRICT, KERN AND SAN BERNARDINO COUNTIES,

CALIFORNIA, ACCEPTING DEDICATION OF WATER

SYSTEM IMPROVEMENTS FOR 105± FOOT MAINLINE

EXTENSION FOR THE NEW MURRAY MIDDLE SCHOOL

ON EAST DRUMMOND AVE.

WHEREAS, water system improvements have been constructed

and installed by Kerns Brothers Construction to District

specifications, at a total cost of $19,000.00; and

WHEREAS, said water system improvements were installed to

provide water service to the New Murray Middle School on East

Drummond Avenue, West of East French Avenue, in Ridgecrest,

California; and

WHEREAS, the Developer, Sierra Sands Unified School

District, constructed said improvements for public use and

grants all rights, title and interest to said water system

improvements and appurtenances to the Indian Wells Valley Water

District;

NOW THEREFORE, the Board of Directors of the Indian Wells

Valley Water District does hereby RESOLVE, DETERMINE AND ORDER,

as follows:

Section 1. That said water system improvements and

appurtenances installed for the New Murray Middle School, are

hereby accepted by the Indian Wells Valley Water District.

Section 2. That this acceptance is conditional upon the

warranty of said water system improvements and appurtenances by

the Developer for a period of two years from this date of

acceptance.

All the foregoing being on the motion of and

seconded by , and authorized by the following vote,

namely:

AYES:

NOES:

ABSENT:

ABSTAIN:

2

I HEREBY CERTIFY that the foregoing resolution is the

resolution of Indian Wells Valley Water District as duly passed

and adopted by said Board of Directors at a legally convened

meeting held on the 13th day of March, 2017.

WITNESS my hand and the official seal of said Board of

Directors this 13th day of March, 2017.

ADOPTED AND APPROVED this 13th day of March, 2017.

______________________________________

Peter Brown

President, Board of Directors


ATTEST:

__________________________________

Donald M. Zdeba

Secretary, Board of Directors


(SEAL)

(SEAL)

COMPLETION DATES 12/16/2014 Plan Check and Concept Fees Paid 08/04/2015 Plans Approved 12/22/2015 12” main installed 12/23/2015 6” and 10” connections installed 12/24/2015 Pressure test/chlorination 01/04/2016 Clean bacteriological test 01/06/2016 Connections tied into mainline 08/18/2016 4” meter vault installed 08/19/2016 meter/backflow installed MATERIAL LIST AND COST 105± ft 12” PVC C909 Class 235 44± ft of 6” PVC C909 Class 235 44± ft 10” PVC C900 Class 235 2x12” Butterfly valves 12” flange x ring adapter 12”x6” Tee 12”x10” Tee 6” Gate valve 2 x 6” flange x ring adapter 10” Gate valve 2 x 10” flange x ring adapter 12” blind flange with 2” blowoff 6" x 2” saddle 3 x 2" corp (2 for bypass of 4" meter in case we need to work on) 2" wing lock 2 x 4" x 2" saddles 6 x 2" female by PVC compression type fitting 2" angle stop 10ft of 2" Sch 80 6” x 4’ reducer 8' of 4" ductile pipe 4" Neptune meter. 2 x 4" gate valves (meter control and so we can use bypass) 10" x 10" tee (for fire department connection) 3 x 10" 90's 2 x 5' ductile pipe legs (for backflow) 10" backflow 2 x 5' ductile 4" legs 4 ductile 4" 90's 4" Backflow 2" backflow 10ft of 2” copper pipe 4 slip by slip copper 90's 2" for 2" backflow TOTAL COST OF OFF-SITE WATER IMPROVEMENT MATERIALS: $19,000.00

of 2

RESOLUTION NO. 17-03

RESOLUTION OF THE BOARD OF DIRECTORS OF THE

INDIAN WELLS VALLEY WATER DISTRICT,

RESTATING THE CONSOLIDATION OF DISTRICT

ELECTIONS WITH THE STATEWIDE GENERAL

ELECTIONS

WHEREAS, Indian Wells Valley Water District (“District”) is

a California County Water District formed pursuant to the County

Water District Law (Cal. Water Code sections 30000, et seq.); and

WHEREAS, the District Board of Directors on February 8, 1982

adopted District Resolution No. 93-06 requesting the consolidation

of the District’s general election of directors with the statewide

general election; and

WHEREAS, the Kern County and San Bernardino County Board of

Supervisors have previously consented and ordered the

consolidation of the District’s general election of directors with

the statewide general election; and

WHEREAS, the County of Kern now desires a provision in a

District Resolution regarding reimbursement to the appropriate

county for the costs of conducting the election on behalf of the

District; and

WHEREAS, the District Board of Directors desires compliance

with this request and reiterates it desire to consolidate the

District’s general election of directors with the statewide

general election as provided for in District Resolution No. 93-

06.

NOW, THEREFORE, BE IT RESOLVED that this District Board of

Directors does hereby determine:

1. That the Board of Supervisors of Kern County and the

Board of Supervisors of San Bernardino County are hereby

requested to consolidate the General District Elections

of the District with the statewide general elections

held in even-numbered years; and

2. That any such consolidation of elections shall also

include dates that are consistent with the primary or

general election with respect to nominations, notices,

canvass of votes, certification of elections, and all

of 2

other procedural requirements of the Uniform District

Election Law; and

3. The District shall reimburse the appropriate County for

the costs of conducting any election on behalf of the

District as provided by California Elections Code

Section 10002.

BE IT FURTHER RESOLVED that these policies shall remain in

full force and effect until rescinded by this Board.

All the foregoing being on the motion of and seconded by

, and authorized by the following vote, namely:

AYES:

NOES:

ABSENT:

ABSTAIN:

I HEREBY CERTIFY that the foregoing resolution is the

resolution of Indian Wells Valley Water District as duly passed

and adopted by said Board of Directors at a legally convened

meeting held on the 13th day of March, 2017.

WITNESS my hand and the official seal of said Board of

Directors this 13th day of March, 2017.

ADOPTED AND APPROVED this 13th day of March, 2017.

______________________________________

Peter E. Brown

President, Board of Directors


ATTEST:

__________________________________

Donald M. Zdeba

Secretary, Board of Directors


(SEAL)

DRAFT

BYLAWS

of the

INDIAN WELLS VALLEY

GROUNDWATER AUTHORITY

March 16, 2017

DRAFT

i

TABLE OF CONTENTS

BYLAWS OF THE

INDIAN WELLS VALLEY GROUNDWATER AUTHORITY

ARTICLE 1. THE AUTHORITY

1.1 NAME OF THE AGENCY .................................................................................................1

1.2 SEAL....................................................................................................................................1

1.3 PRINCIPAL OFFICE OF THE AUTHORITY ...................................................................1

1.4 AUTHORITY POWERS .....................................................................................................1

ARTICLE 2. MEETINGS

2.1 OPEN MEETINGS ..............................................................................................................1

2.2 REGULAR MEETINGS .....................................................................................................1

2.3 SPECIAL MEETINGS ........................................................................................................1

2.4 EMERGENCY MEETNGS .................................................................................................1

2.5 AGENDA .............................................................................................................................2

2.6 QUORUM ............................................................................................................................2

2.7 OFFICIAL ACT...................................................................................................................2

2.8 VOTING ..............................................................................................................................2

2.9 RULES OF ORDER ............................................................................................................2

2.10 MINUTES ............................................................................................................................2

ARTICLE 3. OFFICERS

3.1 OFFICERS OF THE BOARD .............................................................................................3

3.2 APPOINTMENT OF OFFICERS OF THE BOARD ..........................................................3

3.3 GENERAL MANAGER ......................................................................................................3

3.4 BOARD SECRETARY .......................................................................................................3

3.5 GENERAL COUNSEL .......................................................................................................3

3.5.1 RETAINER AGREEMENTS ..............................................................................................4

3.6 OFFICER COMPENSATION .............................................................................................4

3.7 FISCAL AGENT AND TREASURER ...............................................................................4

3.8 WATER RESOURCES MANAGER ..................................................................................5

ARTICLE 4. DIRECTOR COMPENSATION AND EXPENSES

4.1 COMPENSATION ..............................................................................................................5

4.2 EXPENSES .........................................................................................................................5

DRAFT

ii

ARTICLE 5. COMMITTEES

5.1 ESTABLISHMENT OF STANDING COMMITTEES ......................................................5

5.2 CONDUCT OF STANDING COMMITTEES ....................................................................6

5.3 STANDING COMMITTEE MEMBERSHIP .....................................................................6

5.4 STANDING COMMITTEE DIRECTION ..........................................................................6

5.5 POLICY ADVISORY COMMITTEE .................................................................................6

5.6 POLICY ADVISORY COMMITTEE MEMBERSHIP ......................................................6

5.7 TECHNICAL ADVISORY COMMITTEE ........................................................................7

5.8 TECHNICAL ADVISORY COMMITTEE MEMBERSHIP [RESERVED] .....................7

5.9 AD HOC COMMITTEE......................................................................................................7

ARTICLE 6. BUDGET AND FINANCES

6.1 BUDGET .............................................................................................................................7

6.2 APPROVAL OF WARRANTS AND SIGNATURE OF CHECKS ...................................7

6.3 GENERAL AND SPECIAL BOOKS OF ACCOUNT .......................................................8

6.4 FUND DEPOSITORIES ......................................................................................................8

ARTICLE 7. DEBTS AND LIABILITIES

7.1 DEBTS AND LIABILITIES ...............................................................................................8

ARTICLE 8. RECORDS RETENTION

8.1 RECORDS RETENTION POLICY ....................................................................................8

8.2 MAINTENANCE AND INSPECTION OF AGREEMENT AND BYLAWS ...................8

8.3 INSPECTN RIGHTSOF MEMBERS .................................................................................8

8.4 INSPECTION BY DIRECTORS ........................................................................................8

8.5 INSPECTION BY THE PUBLIC ........................................................................................9

8.6 WEBSITE POLICY .............................................................................................................9

ARTICLE 9. CODE OF ETHICS

9.1 DECLARATON OF POLICY .............................................................................................9

9.2 RESPONSIBILITIES OF PUBLIC OFFICE ......................................................................9

9.3 DEDICATED SERVICE .....................................................................................................9

9.4 FAIR AND EQUAL TREATMENT .................................................................................10

9.5 POLITICAL ACTIVITIES ................................................................................................10

9.6 EX PARTE COMMUNICATIONS ..................................................................................10

9.7 AVOIDANCE OF IMPRESSIONS OF CORRUPTIBILITY ...........................................10

9.8 NO DISTRIMINATION IN APPOINTMENTS ...............................................................10

9.9 AUTHORITY ALLEGIANCE AND PROPER CONDUCT ............................................10

9.10 PENALTIES ......................................................................................................................11

ARTICLE 10. CLAIMS AGAINST THE AUTHORITY

10.1 [RESERVED] ....................................................................................................................11

DRAFT

iii

ARTICLE 11. PURCHASING POLICY

11.1 [RESERVED] ....................................................................................................................11

ARTICLE 12. INVESTMENT POLICY

12.1 [RESERVED] ....................................................................................................................11

ARTICLE 13. CONFLICT OF INTEREST CODE

13.1 [RESERVED] ....................................................................................................................11

ARTICLE 14. AMENDMENT

14.1 AMENDMENT..................................................................................................................11

ARTICLE 15. DEFINITIONS AND CONSTRUCTION

15.1 DEFINITIONS AND CONSTRUCTION .........................................................................11

BYLAWS DRAFT - 3-10-17 - FINAL AGENDA v 3-16-17 1

PREAMBLE

These Bylaws are adopted pursuant to Section 8.05 of the Joint Exercise of Powers

Agreement creating the Indian Wells Valley Groundwater Authority (the "Agreement").

ARTICLE 1. THE AUTHORITY

1.1 NAME OF THE AGENCY. The name of the Agency created by the Agreement shall be

the Indian Wells Valley Groundwater Authority ("Authority").

1.2 SEAL. The seal of the Authority shall be in the form of a circle and shall bear the name

of the Authority and the year 2016 which is the year of its organization.

1.3 PRINCIPAL OFFICE OF THE AUTHORITY. The principal office of the Authority

shall be at the offices of the Indian Wells Valley Water District, located at 500 W.

Ridgecrest Boulevard, Ridgecrest, California, 93555.

1.4 AUTHORITY POWERS. The powers of the Authority are established in accordance with

Article VI of the Agreement and vested in the Authority’s Board of Directors (“Board”).

The Board reserves the right to delegate such powers as are appropriate and permissible

by law.

ARTICLE 2. MEETINGS

2.1 OPEN MEETINGS. Meetings of the Board and any Authority committees, including

those with telephonic participation, shall be held in accordance with the Ralph M. Brown

Act (California Government Code sections 54950, et seq.). No action shall be taken by

secret ballot at such meetings. Meetings of the Board and Authority committees shall be

held within the geographical boundaries of the Basin, except as permitted by the Brown

Act.

2.2 REGULAR MEETINGS. The regular meetings of the Authority shall be held at a

location within the geographical boundaries of the Basin on a day and time, which the

Authority’s Board may from time-to-time designate. In the event a regular meeting

would take place on a legal holiday, the meeting may be rescheduled to another date and

time as determined by the Board.

2.3 SPECIAL MEETINGS. Special meetings of the Board shall be conducted pursuant to

California Government Code section 54956 and they may be called by the Chairperson,

or by the concurrence of any two Primary Directors.

2.4 EMERGENCY MEETINGS. Emergency meetings of the Board shall be conducted

pursuant to California Government Code section 54956.5 and they may be called by the

Chairperson, or by the concurrence of any two Primary Directors.

DRAFT

2

2.5 AGENDA. The General Manager, in consultation with IWVGA General Counsel and

staff of the Members, shall prepare the draft agenda, which must be reviewed and

approved by the General Counsel. In the event there is a disagreement between the

General Manager and the General Counsel on any topic, the Board Chairperson will be

consulted to provide the necessary direction. The Chairperson or his or her delegate shall

then approve the draft agenda before its finalization and posting in accordance with the

Ralph M. Brown Act.

2.6 QUORUM. A quorum of the Board shall consist of a majority of the Directors

representing the then active General Members. In the absence of a quorum, no business

may be transacted beyond the adjournment of a meeting by the remaining Directors. A

Director shall be deemed present for the determination of a quorum if the Director is

present at the meeting in person or if they participate in the meeting telephonically as

provided for by the Ralph M. Brown Act.

2.7 OFFICIAL ACT. Except as otherwise provided by statute, the Authority shall adopt

every official act by a vote of the Board in accordance with the applicable provisions of

the Agreement.

2.8 VOTING. As set forth in the Agreement, the affirmative vote of a majority of the Board

shall be required for the approval of any Board action. In addition, no action may be

approved by the Board unless it receives the affirmative vote from no less than two of the

then voting Directors representing the County of Kern, the City of Ridgecrest and/or the

Indian Wells Valley Water District.

Notwithstanding the foregoing, the Board may approve the Regular Monthly Receivables

by a simple majority vote so long as the routine costs and bills making up the Regular

Monthly Receivables have not been objected to by any Director. While a Director may

voice an oral objection at the meeting, a Director’s presence is not required and they may

also file an objection in writing prior to the meeting. Likewise, any meeting of the Board

may be adjourned by a simple majority vote of the then present Directors.

The voting on all matters of the Board and Committees, including minute orders,

resolutions and ordinances, shall be reported on the minutes and accomplished in a

manner that readily signifies the action taken and the vote or abstention on that action of

each member present for the action.

2.9 RULES OF ORDER. All rules of order not otherwise provided for in these Bylaws shall

be determined, to the extent practicable, in accordance with "Robert’s Rules of Order;"

provided, however, that no action shall be invalidated or its legality otherwise affected by

the failure or omission to observe or follow "Robert's Rules of Order."

2.10 MINUTES. The Secretary shall prepare written minutes of the Board meetings, which

shall be available for public inspection when approved by the Board. The record shall

contain the votes and abstentions on each matter for which a vote is taken.

DRAFT

3

ARTICLE 3. OFFICERS

3.1 OFFICERS OF THE BOARD. Officers of the Authority’s Board shall consist of a

Chairperson and Vice-Chairperson. The Chairperson shall preside at all meetings of

the Board, while the Vice-Chairperson shall perform the duties of the Chairperson in

the absence or disability of the Chairperson. The Chairperson and Vice-Chairperson

shall exercise and perform such other powers and duties as may be assigned by the

Board.

3.2 APPOINTMENT OF OFFICERS OF THE BOARD. The Chairperson and Vice-

Chairperson shall hold office for a term of one year commencing on January 1 of each

and every calendar year. Beginning in 2017, the Chairperson and Vice-Chairperson

shall rotate annually between the Board members representing the County of Kern,

City of Ridgecrest and the Indian Wells Valley Water District. The Board member

representing the County of Kern shall be the first Chairperson followed in order by

the City of Ridgecrest and then the Indian Wells Valley Water District. The Board

member representing the City of Ridgecrest shall be the first Vice-Chairperson

followed in order by the Indian Wells Valley Water District and then the County of

Kern. Officers of the Board may be removed and replaced at any time, with or

without cause by a vote of the Board. In the event that an Officer of the Board loses

their position as a Primary Director, that Officer of the Board position shall become

vacant and the Board shall elect a new individual to serve the remaining term.

3.3 GENERAL MANAGER. The General Manager shall have general supervision over

the administration of Authority business and affairs, subject to the direction of the

Board. The General Manager or designee may execute contracts, deeds and other

documents and instruments as authorized by the Board.

Until an General Manager is appointed, and except for the Authority's General

Counsel and Treasurer functions, Authority administration and management will be

conducted using a collaborative staffing model in which the professional and

technical staff of the member agencies work together to provide staff leadership,

management and administration of the Authority.

3.4 BOARD SECRETARY. The Secretary shall be elected by and serve at the discretion

of the Board. The Secretary shall keep the administrative records of the Authority,

act as secretary at meetings of the Authority, recording all votes and keep a record of

the proceedings of the Authority to be kept for such purpose, and perform all duties

incident to the Secretary’s office. The Secretary shall maintain a record of all official

proceedings of the Board. The Secretary shall also establish and maintain a list of

persons interested in receiving notices regarding plan preparation, meeting

announcements, and availability of draft plans, maps, and other relevant documents

pursuant to Water Code Section § 10723.4.

3.5 GENERAL COUNSEL. The Authority’s General Counsels shall be the attorneys

appointed by the County of Kern, the City of Ridgecrest and the Indian Wells Valley

DRAFT

4

Water District. The primary responsibility to act as the Authority’s General Counsel

during public meetings shall rotate annually and be in coordination with who is the

then acting Chairperson. For example, when the Chairperson is Kern County’s

representative, Kern County’s attorney will act as the Authority’s General Counsel

during public meetings, or as otherwise directed by the Board. General Counsel shall

be appointed by the Board, and shall be directly responsible to the Board. The

General Counsel shall give advice or written opinions as needed and/or directed by

the Board, and shall prepare proposed resolutions, laws, rules, contracts and other

legal documents for the Authority when requested to do so by the Authority. The

General Counsel shall attend to all lawsuits and other matters to which the Authority

is a part or in which the Authority may be legally interested and do such other things

pertaining to the General Counsel’s office as the Authority may request. Authority

Counsel will recommend appointment of Special Counsel for matters involving more

specialized legal service as required. The Board will set the compensation of Special

Counsel.

3.5.1 RETAINER AGREEMENTS. The Board of Directors shall execute a retainer

agreement with the Authority’s General Counsels which shall expressly provide that

each attorney acting as General Counsel shall be afforded the full and complete

opportunity to represent their General Member in any dispute or action regardless of

any actual or perceived conflicts with the Authority or any of its other Members.

Additionally, the General Counsel shall, when deemed appropriate or called upon,

seek the advice and consultation of the legal counsels, and possibly staff, from

Members of the Authority on legal issues facing the Authority; in such an instance,

the communications shall be confidential and protected to the fullest extent possible

in law and said communications shall not in any way preclude staff or legal counsels

from fulfilling their duties and obligations to their Member, including representation

in any dispute or action.

3.6 OFFICER COMPENSATION. Officers of the Authority which are not Directors shall

receive compensation as designated by the Board in written contract. When, and only

if, specifically called upon by the Board in advance, non-Director officers may

receive reimbursement of their actual and necessary expense at the then current IRS

reimbursement rate.

3.7 FISCAL AGENT AND TREASURER. The County of Kern shall serve as the Fiscal

Agent and Treasurer for the Authority unless otherwise directed by a vote of the

Board. The Fiscal Agent shall be depository for and shall have the responsibility for

all money of the Authority from whatever source. All funds of the Authority shall be

strictly and separately accounted for and regular reports shall be rendered of all

receipts and disbursements during the Fiscal Year as designated by the Board. The

books and records of the Authority shall be open to inspection by the General and

Associate Members and the Treasurer shall provide strict accountability of said funds

in accordance with Government Code sections 6505 and 6505.5 and all other

applicable provisions of law, including any amendments thereto.

DRAFT

5

3.8 WATER RESOURCES MANAGER. The Authority shall hire a consultant or

consultants with the appropriate technical background, expertise and experience to

prepare and implement a Groundwater Sustainably Plan (“GSP”). This position shall

be named the Water Resources Manager and they shall be responsible for preparing

and implementing the GSP as directed by the Board. An engineering, or other

technical, firm may perform these duties, but, in the event that they are performed by

a firm, an individual shall be appointed to serve as the primary project manager. In

preparing the GSP, the Authority’s Water Resources Manager will consult with

the Policy Advisory Committee and the Technical Advisory Committee as directed by

the Board. The Authority’s Water Resources Manager shall also provide technical

information and reports to the Board as needed and/or directed by the Board.

Following the adoption of the GSP, the Authority’s Water Resources Manager shall

be responsible for all work needed to implement the terms of the GSP as directed by

the Board, including, if so directed, the preparation of an annual report.

ARTICLE 4. DIRECTOR COMPENSATION

AND EXPENSES

4.1 COMPENSATION. Currently, the Directors are not compensated for their service by

the Authority. In the event that changes, the Board will set Director compensation

pursuant to a written policy adopted by the Board and included herein.

4.2 EXPENSES. If previously approved by the Board, a Director shall receive actual,

reasonable and necessary reimbursement for travel, meals, lodging, registration and

similar expenses incurred on Authority business. The reimbursement rates for

lodging shall not exceed the posted rates for a trade conference, but if lodging at the

posted rates is not available, the reimbursement rate shall be comparable to the posted

rates. For travel of 250 miles or less, directors shall be reimbursed at the IRS mileage

rate. For travel over 250 miles, directors shall be reimbursed at a rate determined by

the Board. As used herein, “transportation” includes travel to and from terminals.

Automobile rental expenses shall be approved in advance. Reimbursement for meals,

other than alcoholic beverages, shall be at the rate established by the IRS or actual

reasonable cost not to exceed $90 per day. Directors may declare the amount of the

meal under penalty of perjury in lieu of receipts if the amount is less than the IRS

rate. Claims for expense reimbursement shall be submitted to the Board on forms

provided by the Authority within 30-days after the expense has been incurred. The

General Manager shall determine whether the claim satisfies the requirements of this

section and if the claim is denied, the claimant may appeal to the Board.

ARTICLE 5. COMMITTEES

5.1 ESTABLISHMENT OF STANDING COMMITTEES. In accordance with Section 7.04

of the Agreement, the Board may from time to time establish standing committees for the

purpose of making recommendations to the Board on the various activities of the

Authority. The establishment of any standing committee and its duties shall require a

vote of the Board and the activities of the standing committee shall be subject to the

provisions of the Ralph M. Brown Act (California Government Code sections 54950, et

DRAFT

6

seq.). Standing committees shall exist for the term specified in the action creating the

committee and the Board may dissolve a committee at any time through a vote of the

Board.

5.2 CONDUCT OF STANDING COMMITTEES. All standing committee meetings shall be

noticed, held, and conducted in accordance with the provisions of the Ralph M. Brown

Act (California Government Code sections 54950, et seq.). The Board shall appoint the

respective committee chairs in consultation with the Committee members and the Board

may further establish rules of conduct for said standing committees. Each standing

committee may establish a time and place for regular meetings and may call special

meetings in the same manner as the Board. Standing committee meeting minutes shall

be recorded and upon approval shall be distributed to the Board.

5.3 STANDING COMMITTEE MEMBERSHIP. Standing committee membership and

appointments shall be at the Board’s sole discretion. Likewise, the Board shall have the

sole discretion to remove or admonish any member, or members, of any standing

committee at any time. The Board may, at its sole discretion, appoint an alternate to

any standing committee.

5.4 STANDING COMMITTEE DIRECTION. In establishing a standing committee, the

Board shall provide specific direction to the standing committee as to its tasks,

expected duration for completion of its tasks, and a summary of the resources,

including staff or consultant support available to the standing committee in performing

its tasks.

5.5 POLICY ADVISORY COMMITTEE. The Board shall establish a standing committee

named the Policy Advisory Committee (PAC). The PAC, when specifically

designated and assigned by the Board, will advise the Board on the development and

implementation of the GSP. The Board shall establish the time and place for PAC

meetings in consultation with the members of the PAC.

5.6 POLICY ADVISORY COMMITTEE MEMBERSHIP. The Board shall appoint the

PAC members as set forth in this Article 5 and nothing herein shall be interpreted to

prevent the Board from modifying PAC membership or removing a particular PAC

member if the Board so desires. PAC members must be water users within the

Authority’s boundary or represent agencies/organizations who are PAC members. The

Board shall have the sole discretion to approve or disapprove of a particular

individual’s representation on the PAC regardless of the agency or organization they

represent.

The initial PAC membership shall consist of the following non-voting members:

1 representative from the Indian Wells Valley Water District

1 representative from the Department of the Navy

1 representative from the Bureau of Land Management

DRAFT

7

The initial PAC membership shall consist of the following voting members:

2 representatives from Large Agriculture 1 representative from Small Agriculture 2 representatives from Business Interests 2 representatives from Domestic Well Owners 1 representative from Eastern Kern County Resource Conservation District 1 representative for wholesaler and industrial user

Additionally, while not consider an official member of the PAC and not holding any

voting rights on matters before the PAC, land use expertise shall be provided to the

PAC through the appointment of:

1 representative from Kern County Planning and Natural Resources Dept.

5.7 TECHNICAL ADVISORY COMMITTEE. The Board shall establish a standing

committee named the Technical Advisory Committee (TAC). The TAC, when

specifically designated and assigned by the Board, will advise the Board and the

Authority’s Water Resource Manager on the development and implementation of the

GSP

5.8 TECHNICAL ADVISORY COMMITTEE MEMBERSHIP. [Reserved]

5.9 AD HOC COMMITTEE. This Article 5 shall not apply to ad hoc committees which

shall be subject to the provisions of the Ralph M. Brown Act (California Government

Code sections 54950, et seq.).

ARTICLE 6. BUDGET AND FINANCES

6.1 BUDGET. The Authority shall operate pursuant to an operating budget adopted in

accordance with Section 9.07 of the Agreement. The Authority shall endeavor to

operate each year pursuant to an annually balanced budget so that projected annual

expenses do not exceed projected annual revenues. If the General Manager or

Chairperson determines the approved budget is inadequate, he or she shall submit

recommended modifications to the Board for consideration and action. The General

Manager shall implement the approved or revised budget, provided, all expenditures for

capital improvements shall be approved by the Board before they are undertaken.

6.2 APPROVAL OF WARRANTS AND SIGNATURE OF CHECKS. The Board shall

approve all warrants and authorize issuance of checks in payment thereof. A check

register showing the check number, payee, amount, and the purpose of each check, as

prepared by the Treasurer, will be sent to the Board as required by the Brown Act.

Checks in payment of utility bills, postage, payroll, payroll taxes, credit union

collections, petty cash, emergency repairs and invoices subject to discount and interfund

DRAFT

8

transfers may be disbursed prior to Board approval. Such items shall be set forth on the

next regular check register and presented to the Board.

6.3 GENERAL AND SPECIAL BOOKS OF ACCOUNT. The Treasurer shall maintain

books of account in accordance with accepted accounting principles showing the status

of all monies received and disbursed. Such general and special fund accounts shall be

maintained as are necessary to accomplish the purpose of the Authority.

6.4 FUND DEPOSITORIES. Currently the County of Kern is Fiscal Agent and Treasurer

for the Authority and all funds of the Authority are deposited with the County of Kern.

If the Board desires to designate a new depository for Authority funds, the Board shall

do so through a written policy included herein.

ARTICLE 7. DEBTS AND LIABILITIES

7.1 DEBTS AND LIABILITIES. Except as may be specifically provided for in the

Agreement and/or California Government Code Section 895.2 as amended or

supplemented, the debts, liabilities and obligations of the Authority are not and will

not be the debts, liabilities or obligations of any or all of the Members. However,

nothing in this Article or in the Agreement prevents, or impairs the ability of, a

Member or Members, from agreeing, in a separate agreement, to be jointly and/or

severally liable, in whole or in part, for any debt, obligation or liability of the

Authority, including but not limited to, any bond or other debt instrument issued by the

Authority.

ARTICLE 8. RECORDS RETENTION

8.1 RECORDS RETENTION POLICY. The Authority shall adopt a records retention

policy. This policy will provide criteria and procedures for the retention or destruction of

Authority records.

8.2 MAINTENANCE AND INSPECTION OF AGREEMENT AND BYLAWS. The

Authority will keep at its principal executive office the original or copy of the Agreement

and these Bylaws as amended to date, which will be open to inspection by the Authority

or any Member at all reasonable times during office hours.

8.3 INSPECTION RIGHTS OF MEMBERS. Provided that upon the advice of General

Counsel no legal conflict exists, any Member may inspect any record of the Authority,

including but not limited to the accounting books and records and minutes of the

proceedings of the Board and committees of the Board, at any reasonable time. A

designated representative of the entity may make any inspection and copying under this

Section and the right of inspection includes the right to copy.

8.4 INSPECTION BY DIRECTORS. Provided that upon the advice of General Counsel no

legal conflict exists, any Director may inspect any record of the Authority, including but

not limited to the accounting books and records and minutes of the proceedings of the

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Board and committees of the Board, at any reasonable time. A designated representative

of the entity may make any inspection and copying under this Section and the right of

inspection includes the right to copy.

8.5 INSPECTION BY THE PUBLIC. As directed and permitted by law, Authority records

are open to inspection by the public.

8.6 WEBSITE POLICY. The Authority shall establish a public website where all pertinent

documentation, not specifically protected by law, may be openly inspected by the public.

Documents shall generally include, but are not limited to: all agendas, minutes,

resolutions, and ordinances of the Board and its standing committees; all public written

briefings, presentations and correspondence of the Board and its standing committees;

and, all public financial and technical reports that are not protected by law.

ARTICLE 9. CODE OF ETHICS

9.1 DECLARATION OF POLICY. The proper operation of democratic government requires

that public officials and employees be independent, impartial and responsible to the

people; that government decisions and policy be made in the proper channels of the

governmental structure; that public office not be used for personal gain; and the public

have confidence in the integrity of its government. In recognition of these goals, there is

hereby established a code of ethics for all officers and employees, whether elected or

appointed, paid or unpaid. This article establishes ethical standards of conduct for

Authority officers and employees by setting forth those acts or actions that are

incompatible with the best interests of the Authority and by directing the officers'

disclosure of private financial or other interests in matters affecting the Authority.

9.2 RESPONSIBILITIES OF PUBLIC OFFICE. Public officials and employees are agents

of public purpose and hold office for the benefit of the public. They are bound to uphold

the United States and State Constitution and to carry out impartially the laws of the

nation, State, and the Authority, thus to foster respect for all governments. They are

bound to observe, in their official acts, the highest standards of performance and to

discharge faithfully the duties of their office, regardless of personal considerations.

Recognizing that the public interests must be their primary concern, their conduct in both

their official and private affairs should be above reproach.

9.3 DEDICATED SERVICE. Officers and employees owe a duty of loyalty to the political

objectives expressed by the electorate and the programs developed by the Board to attain

those objectives. Appointive officers and employees should adhere to the rules of work

and performance established as the standards for their positions by the appropriate

authority. Officers and employees should not exceed their authority or breach the law, or

ask others to do so, and owe a duty to cooperate fully with other public officers and

employees unless prohibited from so doing by law or by the officially recognized

confidentiality of their work.

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9.4 FAIR AND EQUAL TREATMENT. The canvassing of members of the Board, directly

or indirectly, to obtain preferential consideration in connection with any appointment to

the municipal service, shall disqualify the candidate for appointment except with

reference to positions filled by appointment by the Board. Officers and employees shall

not request or permit the use of Authority-owned vehicles, equipment, materials, or

property for personal convenience or profit, except when such services are available to

the public generally or are provided for the use of such officer or employee in the conduct

of official business. Officers and employees shall not grant special consideration,

treatment or advantage to a member of the public beyond what is available to every other

member of the public.

9.5 POLITICAL ACTIVITIES. Officers and employees shall not solicit or participate in

soliciting an assessment; subscription of contribution to a political party during working

hours on property owned by the Authority and shall conform to Government Code

Sections 3202 and 3203. Officers and employees shall not promise appointment to a

position with the Authority.

9.6 EX PARTE COMMUNICATIONS. A written communication received by an officer or

employee shall be made part of the record of decision. A communication concerning

only the status of a pending matter shall not be regarded as an ex parte communication.

9.7 AVOIDANCE OF IMPRESSIONS OF CORRUPTIBILITY. Officers and employees

shall conduct their official and private affairs so as not to give a reasonable basis for the

impression that they can be improperly influenced in performance of public duties.

Officers and employees should maintain public confidence in their performance of the

public trust in the Authority. They should not be a source of embarrassment to the

Authority and should avoid even the appearance of conflict between their public duties

and private interests.

9.8 NO DISCRIMINATION IN APPOINTMENTS. No person shall be appointed to,

removed from, or in any way favored or discriminated against with respect to any

appointive administrative office because of such person's race, color, age, religion,

gender identification, national origin, political opinions, affiliations, or functional

limitation as defined by applicable State or federal laws, if otherwise qualified for the

position or office. This provision shall not be construed to impair administrative

discretion in determining the requirements of a position or in a job assignment of a

person holding such a position, subject to review by the Board.

9.9 AUTHORITY ALLEGIANCE AND PROPER CONDUCT. Officers and employees

shall not engage in or accept any private employment, or render services for private

interest, when such employment or service is incompatible with proper discharge of

official duties or would tend to impair independence or judgment or action in the

performance of those duties. Officers and employees shall not disclose confidential

information concerning the property, government, or affairs of the Authority, and shall

not use confidential information for personal financial gain. Officers and employees

shall not accept a gift in excess of limits established by state law. Officers and

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employees shall not accept any gift contingent upon a specific action by the Board.

Officers and employees shall not appear on behalf of business or private interests of

another before the Board where such appearance would create a potential of having to

abstain from Officers participating on that matter or be incompatible with official duties.

Officers and employees shall not represent a private interest of another person or entity in

any action or proceeding against the interest of the Authority in any litigation to which

the Authority is a party. A Director may appear before the Authority on behalf of

constituents in the course of duties as a representative of the electorate or in the

performance of public or civic obligations.

9.10 PENALTIES. In addition to any other penalties or remedies provided by law, violation

of this Article shall constitute a cause for suspension, removal from office or employment

or other disciplinary action after notice and hearing conducted by the appropriate

appointed authority or, in the case of the Board, a majority of such Board.

ARTICLE 10. CLAIMS AGAINST THE AUTHORITY

10.1 [RESERVED]

ARTICLE 11. PURCHASING POLICY

11.1 [RESERVED]

ARTICLE 12. INVESTMENT POLICY

12.1 [RESERVED]

ARTICLE 13. CONFLICT OF INTEREST CODE

13.1 [RESERVED]

ARTICLE 14. AMENDMENT

14.1 AMENDMENT. These Bylaws may be amended from time to time by resolution of

the Board.

ARTICLE 15. DEFINITIONS AND CONSTRUCTION

15.1 DEFINITIONS AND CONSTRUCTION. Unless specifically defined in these Bylaws,

all defined terms shall have the same meaning ascribed to them in the Agreement. If any

term of these Bylaws conflicts with any term of the Agreement, the Agreement's terms

shall prevail, and these Bylaws shall be amended to eliminate such conflict of terms.

Unless the context or reference to the Agreement requires otherwise, the general

provisions, rules of construction and definitions in the California Civil Code will govern

the interpretation of these Bylaws.

IWVGA ADMINISTRATIVE OFFICE

MEMORANDUM

TO: IWVGA Board Members DATE: March 16, 2017 FROM: Alan Christensen, IWVGA Staff SUBJECT: Staff Report Regarding Written Comments Received on Bylaws

The Authority has received written comments and proposed changes to the Bylaws from certain members the public through the City of Ridgecrest. While it should be acknowledged that many of these comments were already addressed by the Indian Wells Valley Groundwater Authority (“Authority”) at its last meeting, the City has nonetheless requested that the Authority staff respond to these requested changes in writing. The following Report presents said response. The proposed changes from the members of the public are in double strike out for removal and bold underline for proposed additions. For the sake of easier review, we have included, where appropriate, recommend changes, if any, in this report under the heading “Compromise Language” and those recommendations are reflected on the attached set of Bylaws which are presented to the Board today for adoption. Suggested changes are shown in RED TEXT on the attached Bylaws.

Proposed Change 1

2.1 OPEN MEETINGS. Meetings of the Board and any Authority committees shall be held in accordance with the Ralph M. Brown Act (California Government Code sections 54950, et seq.). No action shall be taken by secret ballot at such meetings. Meetings of the Board and Authority committees shall be held within the geographical boundaries of the Basin, except as permitted by the Brown Act. All telephonic (audio/video) meetings will be held in accordance with the Brown Act.

Response:

This language is not needed because the Section 2.1 already clearly provides that meetings will “be held in accordance with the Ralph M. Brown Act (California Government Code sections 54950, et seq.). Likewise, the Authority’s Joint Powers Agreement expressly provides in Section 7.05 that the Board and Committees “may use teleconferencing in connection with any meeting in conformance with, and to the extent authorized by, applicable law.”

The Brown Act allows a public agency to use any type of teleconferencing in connection with any meeting. (Government Code section 54953(b).) “Teleconference” is defined as “a meeting of a individuals in different locations, connected by electronic means, through either audio or video, or both.” In addition to the specific requirements relating to teleconferencing, the meeting must comply with all provisions of the law otherwise applicable. (Government Code section 54953(d))

Section 54953(b) contains the following specific requirements: (1) Teleconferencing may be used for all purposes during any meeting (2) At least a quorum of the public agency must participate from teleconferencing locations within the public agency’s jurisdiction (3) Each teleconference location must be identified in the notice and agenda of the meeting (4) Agendas must be posted at each teleconference location (5) Each location must be accessible to the public. (6) The agenda must provide the opportunity for the public to address the legislative body directly at each teleconference location. (7) All votes must be by roll call.

In conclusion, while this change is not legally necessary, we are nonetheless recommending a minor non-substantive change to the Bylaws to add clarity for the public.

Compromise Language:

2.1 OPEN MEETINGS. Meetings of the Board and any Authority committees, including those with telephonic participation, shall be held in accordance with the Ralph M. Brown Act (California Government Code sections 54950, et seq.). No action shall be taken by secret ballot at such meetings. Meetings of the Board and Authority committees shall be held within the geographical boundaries of the Basin, except as permitted by the Brown Act.

Proposed Change 2

2.8. VOTING. As set forth in the Agreement, the affirmative roll call vote of a majority of the Board shall be required for the approval of any Board action. In addition, no action may be approved by the Board unless it receives the affirmative vote from no less than two of the then voting Directors representing the County of Kern, the City of Ridgecrest and/or the Indian Wells Valley Water District.

Response:

The proponents of this change have asserted that a roll call vote is required by the Brown Act. This assertion is simply incorrect and we assume was based on a misinterpretation of Government Code section 54953(c)(2), which states in relevant part: “The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.”

Some have misinterpreted this to mean that all votes must be roll call votes. But as you can see from the language all that is required is that the votes be clearly reported.

Additionally, the third paragraph of this Section 2.8 already meets the requirements of the Brown Act and expressly provides that voting “shall be accomplished in a manner that readily signifies the vote of the individual Directors which shall be entered upon the minutes of such meeting. Likewise, Bylaws Section 2.1 expressly provides that “[n]o action shall be taken by secret ballot at such meetings.”

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Therefore, while this change is not legally required, we are nonetheless recommending a non-substantive change to the third paragraph of this Section 2.8 to provide additional clarity for the public and to cure a typographical error.


2.8. VOTING. [third paragraph]

The voting on all matters of the Board and Committees, including minute orders, resolutions and ordinances, shall be reported on the minutes and accomplished in a manner that readily signifies the action taken and the vote or abstention on that action of each member present for the action.

Proposed Change 3

3.4 BOARD SECRETARY. The Secretary shall be elected by and serve at the discretion of the Board. The Secretary shall keep the administrative records of the Authority, act as secretary at meetings of the Authority, recording all votes and keep a record of the proceedings of the Authority to be kept for such purpose, and perform all duties incident to the Secretary's office. The Secretary shall maintain a record of all official proceedings of the Board. The Secretary shall also establish and maintain a list of persons interested in receiving notices regarding plan preparation, meeting announcements, and availability of draft plans, maps, and other relevant documents pursuant to Water Code Section § 10723.4 and the Brown Act.

Response:

To the extent the suggested change is referring to the Agenda notice provisions of the Brown Act those issues are addressed in Section 2.5 wherein we provide that the agenda will be “post[ed] in accordance with the Ralph M. Brown Act.” Included in that posting is the requirement that the Authority send the Agenda to those that have requested notice pursuant to GC 54954.1.

Additionally, it is important to note that Government Code Section 54954.1 does not require the Board Secretary to maintain the list and given the General Manager’s other duties relative to the Agenda, and staff recommends no change to the Bylaws because this duty is a better fit for delegation and supervision by the General Manager.

Therefore, while staff wishes to assure the public that the requirements of Government Code Section 54954.1 will be met, staff is not recommending any changes to this Section 3.4 because the assignment of this administrative task should be left to the supervision of the General Manager.

Proposed Change 4

3.5 GENERAL COUNSEL. The Authority's General Counsels shall be the attorneys appointed by the County of Kern, the City of Ridgecrest and the Indian Wells Valley Water District. As soon as possible, the Board shall hire an independent General Counsel

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who will oversee the total scope of operations. The independent General Council shall be hired prior to the Board assessing any fees or the adoption of the GSP. General Counsel shall be appointed by the Board, and shall be directly responsible to the Board. The General Counsel shall give advice or written opinions as needed and/or directed by the Board, and shall prepare proposed resolutions, laws, rules, contracts and other legal documents for the local authorities as needed. The General Counsel shall attend to all lawsuits and other matters assigned by the board. The Independent General Counsel will be paid for by Kern County. In the interim, prior to hiring an Independent General Counsel, the local agencies, including the County of Kern, the City of Ridgecrest, and the Indian Wells Valley Water District, shall appoint their own Counsels who will collectively act as one body, and will assume the duties of the interim General Counsel. In addition, individual agency attorney’s will take turns presiding over public meetings on an annual rotational basis whenever their agency director is the Chairperson. Chairmen hold the post for one year, and therefore their counsel would preside over meetings for a one-year term.

The General Counsel shall attend to all lawsuits and other matters to which the Authority is a part or in which the Authority may be legally interested and do such other things pertaining to the General Counsel's office as the Authority may request. Authority Counsel will recommend appointment of Special Counsel for matters involving more specialized legal service as required. The Board will set the compensation of General Counsel.

Response:

Initially, it should be noted that the above requested change does not completely track with the existing language found in the Bylaws.

Government Code Section 895.2 expressly provides that the General Members to the Authority are jointly and severally liable for the torts of the Authority. As a practical matter, this means that the attorneys for the General Members must be actively engaged in the Authority’s business because ultimately those General Members will be held liable for torts of the Authority.

Consequently, the Authority adopted the Co-Counsel role so that the attorneys for the General Members would have complete access to the workings of the Authority. Additionally, the Authority voted last fall to have the attorney functions shared and donated as in kind services by the General Members. Also note that the search for independent legal counsel is already under way.

In conclusion, staff is not recommending any changes to this Section 3.5.

Proposed Change 5 3.5.1 Retainer Agreements. Prior to obtaining Independent General Counsel, the Board of Directors shall execute a retainer agreement with the Authority's General Counsels which shall expressly provide that each attorney acting as General Counsel shall be afforded the full and complete opportunity to represent their General Member in any dispute or action regardless of any actual or perceived conflicts with the Authority or any of its other Members.….

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Response:

This has already been done or is in the process of being done. Accordingly, staff is not recommending any changes to this Section 3.5.1.

Proposed Change 6 (New Proposed Section)

3.5.2 Special Counsel. The Board will hire or contract for Special Counsel as needed when recommended by the Authority General Counsel for matters of specialized legal services.

Response:

This is already covered in the existing language of Section 3.5 which states in part, “Authority Counsel will recommend appointment of Special Counsel for matters involving more specialized legal service as required. Accordingly, staff is not recommending adding a new Section 3.5.2.

Proposed Change 7

3.6 OFFICER COMPENSATION Appointed Employees Compensation. Officers of the Authority which are not Directors shall receive compensation as designated by the Board in written contract. When, and only if, specifically called upon by the Board in advance, non-Director officers may receive reimbursement of their actual and necessary expense at the then current IRS reimbursement rate.

Response:

This change seems to be based on the false premise that employees cannot be officers of the Authority. The General Manager position is both an employee and an “Officer of the Authority.”

Therefore, staff is not recommending any changes to this Section 3.6.

Proposed Change 8

3.7 FISCAL AGENT AND TREASURER. The County of Kern shall serve as the Fiscal Agent and Treasurer for the Authority unless otherwise directed by a vote of the Board. The Fiscal Agent shall be depository for and shall have the responsibility for all money of the Authority from whatever source. All funds of the Authority shall be strictly and separately accounted for and regular reports shall be rendered of all receipts and disbursements during the Fiscal Year as designated by the Board. The books and records of the Authority shall be open to inspection by the General and Associate Members and the general public. The Treasurer shall provide strict accountability of said funds in accordance with Government Code sections 6505 and 6505.5 and all other applicable provisions of law, including any amendments thereto.

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Response:

The Public Records Act generally demands public access to the fiscal books and records of the Authority and the Authority may not limit the mandates of the Act. Simply put, if the Public Records Act requires the release of a document to the public the Authority must and will release that document.

With that said, there are some very limited circumstances wherein records that could be categorized as fiscal books and records cannot be released to the general public by the Authority. As an example, while the public is entitled to the information about an employee’s salary, the Act cannot and does not allow for the release of certain payroll records such as W2s.

Therefore, staff is recommending no change because this proposed change is unwarranted and it could be read as inconsistent with the Public Records Act and legal privacy mandates.

Proposed Change 9

5.5 POLICY ADVISORY COMMITTEE. The Board shall establish a standing committee named the Policy Advisory Committee (PAC). The PAC, when specifically designated and assigned by the Board, when appointed by the board,* will advise the Board on the development and implementation of the GSP Authority policy matters important to the water users. The Board shall establish the time and place for PAC meetings in consultation with the members of the PAC.

* (Note that the redline changes from the public do not accurately quote the existing bylaws. The struck-out phrase “when appointed by the board” was not contained in the original bylaw draft).

Response:

We understand that some have argued that these revisions are required by law. Unfortunately, despite our best efforts to address this misconception on several occasions, the misconception seems to still exist.

Public participation is described in two sections of the Sustainable Groundwater Management Act (SGMA). Water Code § 10723.2 requires the Authority to "consider the interests of all beneficial uses and users of groundwater . . .", while Section § 10727.8 suggests that “[t]he groundwater sustainability agency may appoint and consult with an advisory committee consisting of interested parties for the purposes of developing and implementing a groundwater sustainability plan. The groundwater sustainability agency shall encourage the active involvement of diverse social, cultural, and economic elements of the population within the groundwater basin prior to and during the development and implementation of the groundwater sustainability plan.” (Emphasis added).

SGMA does not require that a PAC be formed, or that a PAC take on any particular shape, or that certain individuals be appointed to a PAC, or that it be charged with any particular

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responsibilities. Even SGMA’s reference to the creation of an “advisory committee” is stated as something the Authority “may” do — not something that they are required to do.

With that said, the Authority’s Board has clearly stated on numerous occasions that it is an important goal of the Authority, to provide the public with opportunities for meaningful participation in the decisions of the GSA. Accordingly, the Board intends to solicit the involvement of PAC well beyond what is simply required by SGMA. The Board has indicated its intention to use the PAC as a means to solicit public participation on topics such as the imposition of fees and other matters of interest to water users. In fact, the Authority intends to establish the PAC as soon as practicable following adoption of these Bylaws to improve public involvement. Lastly, the Board must maintain the ability to direct the issues before the PAC so it remains a valuable resource in the development and implementation of the GSP.

Therefore, staff believes that the current language is consistent with SGMA and the stated policy objectives of the Authority and recommends no change.

Proposed Change 10

5.6 POLICY ADVISORY COMMITTEE MEMBERSHIP. The Board shall appoint the PAC members as set forth in this Article 5. and nothing herein shall be interpreted to prevent the Board from modifying PAC membership or removing a particular PAC member. PAC members must be water users within the Authority's boundary or represent agencies/organizations who are PAC members. Board members, alternate board members, and staff are not eligible to serve as PAC voting or non-voting members. Upon 4/5 majority recommendation from the PAC Committee, the Board may remove a particular member’s representative on the PAC. The removal must then be approved by a 4/5 majority vote of the Board as well. The Board shall have the sole discretion to approve or disapprove of a particular individual's representation on the PAC regardless of the agency or organization they represent. The below authorized membership in no way imposes an obligation upon any agency/organization to provide a member. In addition, the Board may add PAC members if necessary.

Response:

The Authority has made a policy decision that the Authority shall control the PAC membership based on the voting requirements approved in the JPA agreement.

Additionally, the proposed voting requirements are inconsistent with Section 7.07 of the Joint Exercise of Powers Agreement Creating the Indian Wells Valley Groundwater Authority (“JPA Agreement”). As a legal matter, the Board may not alter voting requirements without amending the JPA Agreement itself.

Therefore, staff is recommending no change to this Section 5.6.

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Proposed Change 11

The written comments also include a request to change the PAC membership. Under the request, representatives from the entirety of the Board would be placed on the PAC in a non-voting roll and the non-voting Planning position would be removed from the PAC.

Aside from adding two at large members and a new disadvantaged community representative, the written proposal largely leaves the voting membership of the PAC as set forth in the bylaws. With that said, it appoints the Ridgecrest Chamber of Commerce and the IWV Board of Realtors to the PAC under business interests and it splits the domestic well owners into one private and one co-op/mutual.

Response:

The issue of how many Board members can sit on the PAC is a legal issue. Pursuant to the Brown Act, a majority of Authority Board members (or their alternates) cannot sit as part of the PAC committee. The Brown Act requires that a notice of all public meetings be provided to the public. (Government Code sections 54954.1 and 54954.2.) The Attorney General has stated that a majority of legislative body cannot attend a meeting of one of its standing committees without violating the notice requirements of the Act. (79 Ops. Cal. Atty. Gen. 69 (1996)). The AG reasoned that the presence of a majority of the board would constitute a quorum of the entire legislative body resulting in a “meeting” of the legislative body contrary to the agenda. Therefore, only two Voting Board Members (or their alternates) may participate in the PAC. The rest may not do so without making the PAC meetings into an unlawful meeting of the Board.

It has been suggested that the Voting Board Members can get around this problem by appointing someone to the PAC other than their Board Member (or alternate) such as a member of staff. This suggestion creates a practical problem because it places unelected staff members in the position of addressing policy matters without any input from the elected official that has appointed them to the Board.

Under the provisions of the Brown Act, if three Committee Members consult with their appointing Board Members before the vote, then the vote will become a serial meeting of the Authority Board in violation of the Brown Act. To avoid this problem, at least some of the Committee Members will be forced to guess the intentions of their Board Members.

It has also been suggested that the “non-voting” nature of the position cures the Brown Act issue. However, the Brown Act is not limited to voting. It also covers the “fact finding” and “expression of opinion” that leads to action. On this point, the AG has expressly declared that "[i]t is well settled that the Brown Act's definition of “meeting” encompasses informal deliberative and fact-finding sessions, in addition to those in which formal action is taken. . . .” Thus, a “meeting” is not limited to those legislative sessions in which a legislative body decides upon a particular course of action, but also includes sessions conducted for the “collective acquisition and exchange of facts preliminary to the ultimate decision.” For this reason the Authority’s legal staff has recommended that a maximum of two Board member representatives sit on the PAC Board.

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The issue of which two Board members, if any, sit on the PAC Committee is a policy issue. Members of the public have expressed views ranging from having all of the Board members sit on the Committee to having none of them sit on it. The written public comments advance both contradictory views. The Authority Board has considered all of these comments and reached a compromise position wherein the Water District will have a representative sit on the Committee as a non-voting member and the Kern County Planning and Natural Resources Department has a non-voting roll for the limited purpose of providing land use expertise and input to the Committee

Finally, the Board has directed that the descriptions the committee seats be defined in the PAC Charter, not the Bylaws. The Bylaws are intended to generally describe the constituency of each seat. The Charter will provide more specific details. An Exhibit to the Charter will name the initial appointments.

Therefore, while staff is not recommending the adoption of the proposed change, staff is recommending a minor change for the purpose of more clearly communicating to the public the position held by the Kern County planning professional.


The categories for initial PAC membership shall consist of the following non-voting members:

1 representative from the Indian Wells Valley Water District 1 representative from the Department of the Navy 1 representative from the Bureau of Land Management

The categories for initial PAC membership shall consist of the following voting members: 2 representatives from Large Agriculture 1 representative from Small Agriculture 2 representatives from Business Interests 2 representatives from Domestic Well Owners 1 representative from Eastern Kern County Resource Conservation District

1 representative for Wholesaler and Industrial User Additionally, while not considered an official member of the PAC and not holding any voting rights on matters before the PAC, land use expertise shall be provided to the PAC through the appointment of:


Proposed Change 10

5.7 TECHNICAL ADVISORY COMMITTEE. The Board shall establish a standing committee named the Technical Advisory Committee (TAC). The TAC, when specifically designated and assigned appointed by the Board, will advise the Board and the Authority's

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Water Resource Manager on the development and implementation of the GSP technical matters including but not limited to the development and implementation of the GSP.

Response:

Again, the existing language in the Bylaws is needed so the Board can maintain the ability to direct the issues before the TAC so it remains a valuable resource in the development and implementation of the GSP.


Proposed Change 11 (New Proposed Section)

8.6 WEBSITE POLICY. The Authority shall establish a public website where all pertinent documentation, not specifically protected by law, may be openly inspected by the public. Documents shall include, but are not limited to: all Board and committee minutes, written correspondence not protected by law, Board resolutions and ordinances, all briefings, and all financial and technical reports generated for or by the Authority.

Response:

The Authority currently maintains a webpage on the County website that contains these documents. With that said, this seems like a welcome addition to the bylaws and Staff recommends that this change be added with some minor adjustments for clarity.


8.6 WEBSITE POLICY. The Authority shall establish a public website where all pertinent documentation, not specifically protected by law, may be openly inspected by the public. Documents shall generally include, but are not limited to: all agendas, minutes, resolutions, and ordinances of the Board and its standing committees; all public written briefings, presentations and correspondence of the Board and its standing committees; and, all public financial and technical reports that are not protected by law.

Proposed Change 12

7.1 DEBTS AND LIABILITIES. Except as may be specifically provided for in the Agreement and/or California Government Code Section 895.2 as amended or supplemented, the debts, liabilities and obligations of the Authority are not and will not be the debts, liabilities or obligations of any or all of the Members. However, nothing in this Article or in the Agreement prevents, or impairs the ability of, a Member or Members, from agreeing, in a separate agreement, to be jointly and/or severally liable, in whole or in part, for any debt, obligation or liability of the Authority, including but not limited to, any bond or other debt instrument issued by the Authority.

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Response:

Firstly, we should point out that the existing language expressly provides that the Member must agree in a separate agreement before any of this liability and debt can become an issue for the member.

Secondly, this section is written to address the special project provisions in the Joint Powers Agreement. (See Section 10.01 of the Joint Powers Agreement). Simply put, the individual Members of the Authority may engage in special projects that only benefit those participating Members. In those instances, the benefited members must take responsibility for the special project and this provision, along with Section 10.01 of the Joint Powers Agreement, provides for that process while also providing protection from any potential liability from the special project for the non-benefited members.


Proposed Change 13

9.2 RESPONSIBILITIES OF PUBLIC OFFICE. Public officials and employees are agents of public purpose and hold office for the benefit of the public.

Response:

This change seems to be based on the false premise that employees cannot be officers of the Authority. The General Manager position is both an employee and an “Officer of the Authority.” Therefore, staff is not recommending any changes to this Section 9.2.

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Indian Wells Valley Groundwater Authority

Policy Advisory Committee Guidelines

March 16, 2017

Contents

ARTICLE 1 – DEFINITIONS .......................................................................................................1 ARTICLE 2 – MISSION AND OBJECTIVES ............................................................................1 ARTICLE 3 – COMMITTEE STRUCTURE AND ATTENDANCE .......................................2 3.1. Membership .........................................................................................................................2

3.2. Attendance ...........................................................................................................................2

3.3. Officers .................................................................................................................................3

3.4. Roles and Responsibilities ..................................................................................................3

3.5 Meetings ...............................................................................................................................3

3.6 Record of Proceedings ........................................................................................................4

3.7 Rules of Conduct .................................................................................................................4

3.8 Agenda .................................................................................................................................5

3.9 Participation by the Public .................................................................................................6 EXHIBIT A – COMMITTEE MEMBER LISTING ...................................................................7

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Indian Wells Valley Groundwater Authority

Policy Advisory Committee Guidelines

ARTICLE 1 – DEFINITIONS “Authority” means the Indian Wells Valley Groundwater Authority. “Basin” means the Indian Wells Valley Groundwater Basin. “Bylaws” means the Bylaws of the Indian Wells Valley Groundwater Authority. “Board” means the Indian Wells Valley Groundwater Authority Board of Directors. “GSP” means the Indian Wells Valley Groundwater Sustainability Plan, to be formally adopted by the Indian Wells Valley Groundwater Authority Board. “GSP Area” means the Indian Wells Valley Groundwater Basin. “PAC” means the Indian Wells Valley Policy Advisory Committee. “PAC Member” means a person or representative appointed by the Board to the PAC. “Quorum” shall consist of a majority of voting members of the PAC.

ARTICLE 2 – MISSION AND OBJECTIVES

The Policy Advisory Committee (PAC) was established pursuant to Section 5.5 of the Bylaws of the Indian Wells Valley Groundwater Authority. The PAC will advise the Board on the development and implementation of the GSP when directed to do so by the Board. The objectives of the PAC are to:

• Provide meaningful representation and a voice to all types of water users in the Basin. • Work collaboratively for the benefit of the Indian Wells Valley Groundwater Basin as a

whole. • When called upon to provide input and recommendations to the Board in support of

actions that facilitate bringing the Indian Wells Valley Groundwater Basin into compliance with the requirements of the Sustainable Groundwater Management Act of 2014 (SGMA).

• Work in good faith to achieve consensus and make unified recommendations to develop a Groundwater Sustainability GSP and for management actions to achieve groundwater sustainability in accordance with the requirements of SGMA.

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ARTICLE 3 – COMMITTEE STRUCTURE AND ATTENDANCE 3.1. Membership: The PAC is established pursuant to Article 5 of the Bylaws. The Board shall appoint the PAC members as set forth in this Article 5 of the Bylaws and nothing herein shall be interpreted to prevent the Board from modifying PAC membership or removing a particular PAC member if the Board so desires. PAC members have a duty to represent the interests of the Basin as a whole and the constituent group they are appointed for and not their own person or agency interests. The Board shall have the sole discretion to approve or disapprove of a particular individual’s representation on the PAC regardless of the agency or organization they represent. The categories for initial PAC membership shall consist of the following non-voting members:

1 representative from the Indian Wells Valley Water District 1 representative from the Department of the Navy 1 representative from the Bureau of Land Management

The categories for initial PAC membership shall consist of the following voting members: 2 representatives from Large Agriculture 1 representative from Small Agriculture 2 representatives from Business Interests 2 representatives from Domestic Well Owners 1 representative from Eastern Kern County Resource Conservation District

1 representative for Wholesaler and Industrial User Additionally, while not consider an official member of the PAC and not holding any voting rights on matters before the PAC, land use expertise shall be provided to the PAC through the appointment of:

1 representative from Kern County Planning and Natural Resources Dept. The representatives appointed to the PAC are on the attached “Exhibit A”. 3.2. Attendance: PAC members must regularly attend all meetings of the PAC. PAC members who regularly miss PAC meetings without leave from the Board Chairperson may be replaced by the action of the Board.

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3.3. Officers: The Board shall appoint a PAC Chair and Vice-Chair in consultation with the Committee members.

3.4. Roles and Responsibilities: As set forth in Section 5.5 of the Bylaws, the PAC, when specifically designated and assigned by the Board, will advise the Board on the development and implementation of the GSP. As part of membership, PAC members agree to:

• Arrive at each meeting fully prepared to discuss the issues on the agenda. Preparation includes reviewing meeting summaries, technical information, and draft documents distributed in advance of each meeting.

• Present and represent the views of their constituent group on the issues being discussed and be willing to engage in respectful, constructive dialogue with other members of the PAC.

• Develop a problem-solving approach in which they consider the interests and viewpoints of all stakeholders in the Basin.

• Keep their constituent group informed about ongoing issues and actively seek their input. • Pursue the PAC’s purpose and goals and support GSP implementation.

3.5 Meetings: The Board shall establish the time and place for PAC meetings in consultation with the members of the PAC. A regular meeting may be adjourned by the PAC or by less than a quorum to another time. An adjourned regular meeting is a regular meeting for all purposes if held within five days of the regular meeting. If the adjourned meeting is held more than five days after the regular meeting, a new agenda shall be posted. Meetings of PAC shall be open to the public and conducted pursuant to the Ralph M. Brown Act (California Government Code 54950 et sec). No action shall be taken by secret ballot at such meetings. Meetings of PAC shall be held within the GSP Area, except: to comply with State or Federal law or court order; to inspect real property or personal property which cannot be moved; to meet with another public agency at the other agency on multi-agency matters; to discuss legislative or regulatory matters with state or federal officials; to discuss matters relating to a Authority facility in the facility; and to consult with legal counsel at counsel’s office if so doing will result in reduction in legal fees associated with the meeting.

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Meetings include any congregation of a quorum of the PAC at the same time and place to hear, discuss or deliberate on any ruling within the jurisdiction of the PAC; and any use of direct communications, personal intermediaries or technological devices by a quorum of the PAC to develop a collective concurrence to action by the PAC. Meetings do not include: individual contacts between members and other person; attendance at a conference or similar gathering open to the public involving discussions of issues of interest to the public generally by public agencies specifically, if a quorum does not discuss Authority business; attendance at open and publicized meetings addressing topics of community concern by someone not associated with the Authority, if a quorum does not discuss Authority business; or attendance at social or ceremonial events, if quorum does not discuss Authority business. 3.6 Record of Proceedings: An individual appointed by the Board shall prepare written minutes of all PAC meetings, which shall be available for public inspection once reviewed and approved by the PAC. The record shall contain the votes and abstentions of each PAC Member on each matter for which a vote is taken. 3.7 Rules of Conduct: The affirmative vote of at least 5 voting members of the PAC is necessary for the PAC to take formal action on any item. The PAC shall only take action by motion. Motions may be adopted on voice vote; however roll call shall be taken if requested by any member. The Indian Wells Valley Water District; the Department of the Navy; and the Bureau of Land Management are non-voting members and, as such, will not vote on any matter before the PAC. The Kern County Planning and Natural Resources Department is a non-voting roll limited to land use advisory matters only. All other PAC Members are voting members. All rules of order not otherwise provided for in this Charter shall be determined, to the extent practicable, in accordance with "Robert’s Rules of Order;" provided, however, that no action shall be invalidated or its legality otherwise affected by the failure or omission to observe or follow "Robert's Rules of Order." A PAC member desiring to speak on any matter shall first gain recognition from the Presiding Officer. The PAC shall not prohibit public criticism of the policies, procedures, programs or services of the Authority, the PAC, or of the acts or decisions of the PAC. The following procedure shall be followed in connection with any Agenda item requiring a motion:

(a) The Presiding Officer reads the agenda item. (b) Presiding Officer calls for a staff report (if any). (c) PAC Members question staff (if any) (d) Presiding Officer allows public comment.

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(e) Presiding Officer calls for additional PAC Member questions. (f) A PAC Member makes a motion, (g) A PAC Member either seconds the motion or makes a competing motion. (h) If a motion is made that does not receive a second there is no vote on the motion. (i) In cases were two motions have been made and seconded, the Presiding Officer shall choose which motion is discussed and voted on first. (j) The maker of the motion on the floor has the opportunity to speak last. (k) The Presiding Officer restates the motion. (l) The PAC Members vote on the motion. (m) The Presiding Officer announces result.

The Authority’s General Counsel shall be deemed the parliamentarian and if there is a dispute on the process for bringing an item forward or voting on an item, the Presiding Officer shall confer with the General Counsel. 3.8 Agenda: An individual appointed by the Board, in consultation with the Authority’s General Counsel shall prepare the draft agenda, which will be reviewed and approved by the General Counsel and the Board Chairperson. At least seventy-two hours before a regularly scheduled meeting, the Authority shall post an agenda containing a brief general description of each item of business to be transacted or discussed at the meeting in accordance with the Brown Act. The posting shall be freely accessible to the public. The agenda shall include the opportunity for the public to address the PAC prior to taking action on any matter. No action shall be taken on matters not shown on the posted agenda, except members may briefly respond to statements made or questions posed during public comment; request for clarification; provide a reference to staff or other resources for factual information. The business of the PAC shall be conducted in the order and manner specified below. The order may be changed by a majority vote of those present. The following is the order of business:

(a) Call to Order. (b) Salute to the Flag and Invocation (c) Roll Call. (d) Public Comment (e) Discussion items and reports. (f) Adjournment

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3.9 Participation by the Public: Members of the public wishing to address the PAC on any agenda item may do so at the time the item is considered. However, members of the public do not have the right to give testimony outside the scope of, or unrelated to, the agenda item under consideration or outside the scope of the jurisdiction given to the PAC. Comments are limited to no more than 3 minutes per speaker, but that time limit may be modified at the Presiding Officer’s discretion. To ensure efficient proceedings, the PAC may require those desiring to speak to register prior to commencement of the meeting. Under those circumstances, the public will be requested to complete a speaker card and submit it to the Presiding Officer prior to the start of the meeting, if possible, but no later than prior to the public hearing on that item. After being recognized by the Presiding Officer, each member of the public addressing the PAC shall go to the podium, state their name and whom they represent, if any. Each member of the public is encouraged, but not required, to also state his or her address, neighborhood, or location of residence. All remarks shall be addressed to the Presiding officer as a whole and not to any individual PAC Member thereof. When the PAC is in session, all persons present must preserve safety and order. Members of the public should sit in the audience seating area, unless addressing the PAC or entering or leaving the meeting. Any person who disrupts the meeting shall be called to order by the Presiding Officer. If such conduct continues, the Presiding Officer may require that such person(s) be removed before proceeding with the meeting.

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EXHIBIT A

COMMITTEE MEMBER LISTING

NON-VOTING 1 representative from the Indian Wells Valley Water District

1 representative from the Department of the Navy

1 representative from the Bureau of Land Management

VOTING 2 representatives from Large Agriculture

A)

B)

1 representative from Small Agriculture

A)

2 representatives from Business Interests

A)

B)

2 representatives from Domestic Well Owners

A)

B)

1 representative from Eastern Kern County Resource Conservation District

1 representative for Wholesaler and Industrial User

A)

LAND USE STAFF


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7.F.10.

# of water waste reports

received

# of contacts made (written or verbal)

# of formal warning actions

# of penalties issued

Jan-17 12 10 2 1Feb-17 10 10 1 0Mar-17Apr-17May-17Jun-17Jul-17

Aug-17Sep-17Oct-17Nov-17Dec-17

SUBTOTAL 2015 378 376 40 10SUBTOTAL 2016 406 399 28 3SUBTOTAL 2017 22 20 3 1

TOTAL 806 795 71 14TOTAL PENALTIES BILLED

TOTAL PENALTIES COLLECTED

C4G funds still available* $137,377

$382,000* Budget Accounting

($1 = 1 square foot)

Potential Annual Water Savings (AF)

Savings - Cost to Produce 1 AF

Yards completed 93 $101,868 17.50 $4,447.00Yards pending 21 $30,756 5.30 $1,343.00Preapproved apps to stop H2O 46 $100,000 17.20 $4,365.00Applications Pending 6 $12,000 2.10 $524.00Total yards inspected 166 $244,624 42.10 $10,679

Withdrawn applications 81Yards that didn't pass inspection 17

Jan-17 0 Jul-17Feb-17 2 Aug-17Mar-17 Sep-17Apr-17 Oct-17May-17 Nov-17Jun-17 Dec-17

Total Consulations in 2017 2Total Consultations Currently Scheduled 0Total Consultation Applications not Processed 0

SWRCB Water Waster Report

XERIC© Ambassador Consultations

Cash for Grass* In January 2016, the State approved $322,000 grant funds for IWVWD Cash for Grass program

$1,450$1,400

The Mission

of the


is to deliver the

highest quality water at the

best possible price

while continuing to serve as

respectful stewards of the environment.

The Vision

of the


is to provide for

self-sustaining water resources

now and for

generations to come.

Board of Directors