s a w p a · 9/17/2019 · staff present rich haller, larry mckenney, karen williams, dean unger,...

S A W P A

REGULAR COMMISSION MEETING TUESDAY, SEPTEMBER 17, 2019 – 9:30 A.M.

AGENDA

1. CALL TO ORDER/PLEDGE OF ALLEGIANCE (Ronald W. Sullivan, Chair)

2. ROLL CALL

3. PUBLIC COMMENTSMembers of the public may address the Commission on items within the jurisdiction of the Commission; however, no actionmay be taken on an item not appearing on the agenda unless the action is otherwise authorized by Government Code§54954.2(b).

4. CONSENT CALENDARAll matters listed on the Consent Calendar are considered routine and non-controversial and will be acted upon by theCommission by one motion as listed below.

A. APPROVAL OF MEETING MINUTES: SEPTEMBER 3, 2019 ...................................................7 Recommendation: Approve as posted.

B. TREASURER’S REPORT – AUGUST 2019 .....................................................................................15 Recommendation: Approve as posted.

5. NEW BUSINESSA. BRINE LINE OPERATIONS UPDATE

Presenter: Carlos QuinteroRecommendation: Receive and file an update on Brine Line Operations.

B. DCI PROGRAM UPDATEPresenter: Rick WhetselRecommendation: Receive and file an update on the DCI Program and Certified WatershedAmbassador Program Workshops.

SANTA ANA WATERSHED PROJECT AUTHORITY 11615 Sterling Avenue, Riverside, California 92503 • (951) 354-4220

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SAWPA Commission Regular Meeting Agenda

September 17, 2019

6. INFORMATIONAL REPORTSRecommendation: Receive for information.

A. CASH TRANSACTIONS REPORT – JULY 2019..............................................................................21 Presenter: Karen Williams

B. INTER-FUND BORROWING – JULY 2019 (CM#2019.98) .............................................................27 Presenter: Karen Williams

C. PERFORMANCE INDICATORS/FINANCIAL REPORTING – JULY 2019(CM#2019.99) ................................................................................................................................................33 Presenter: Karen Williams

D. BUDGET VS ACTUAL VARIANCE REPORT – FYE 2019 FOURTH QUARTER – ENDINGJUNE 30, 2019 (CM#2019.100) ...................................................................................................................55 Presenter: Karen Williams

E. FINANCIAL REPORT FOR THE FOURTH QUARTER ENDING JUNE 30, 2019 .....................63 • Inland Empire Brine Line• SAWPAPresenter: Karen Williams

F. GENERAL MANAGER REPORT .......................................................................................................83

G. STATE LEGISLATIVE REPORT .......................................................................................................89 Presenter: Rich Haller

H. CHAIR’S COMMENTS/REPORT

I. COMMISSIONERS’ COMMENTS

J. COMMISSIONERS’ REQUEST FOR FUTURE AGENDA ITEMS

7. CLOSED SESSION

A. PUBLIC EMPLOYEE ANNUAL PERFORMANCE EVALUATION – PURSUANT TOGOVERNMENT CODE SECTION 54957Title: General Manager

8. ADJOURNMENTAmericans with Disabilities Act: If you require any special disability related accommodations to participate in this meeting, call (951) 354-4230 or email [email protected]. 48-hour notification prior to the meeting will enable staff to make reasonable arrangements toensure accessibility for this meeting. Requests should specify the nature of the disability and the type of accommodation requested.Materials related to an item on this agenda submitted to the Commission after distribution of the agenda packet are available for public inspection during normal business hours at the SAWPA office, 11615 Sterling Avenue, Riverside, and available at www.sawpa.org, subject to staff’s ability to post documents prior to the meeting.

Declaration of Posting I, Kelly Berry, Clerk of the Board of the Santa Ana Watershed Project Authority declare that on Thursday, September 12, 2019, a copy of this agenda has been uploaded to the SAWPA website at www.sawpa.org and posted at the SAWPA office, 11615 Sterling Avenue, Riverside, California.

/s/ _______________________________________ Kelly Berry, CMC

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http://www.sawpa.org/

http://www.sawpa.org/

SAWPA Commission Regular Meeting Agenda

September 17, 2019

2019 SAWPA Commission Meetings|Events|Important Dates

First and Third Tuesday of the Month (NOTE: Unless otherwise noticed, all Commission Workshops/Meetings begin at 9:30 a.m., and are held at SAWPA.)

January 1/1/19 Commission Workshop [cancelled] 1/15/19 Regular Commission Meeting

February 2/5/19 Commission Workshop 2/19/19 Regular Commission Meeting

March 3/5/19 Commission Workshop 3/19/19 Regular Commission Meeting 3/29/19 OWOW Conference 2019, Cal State Fullerton

April 4/2/19 Commission Workshop 4/16/19 Regular Commission Meeting

May 5/7/19 Commission Workshop [cancelled] 5/7 – 5/10/19 ACWA Spring Conference, Monterey 5/21/19 Regular Commission Meeting

June 6/4/19 Commission Workshop 6/18/19 Regular Commission Meeting

July 7/2/19 Commission Workshop 7/16/19 Regular Commission Meeting

August 8/6/19 Commission Workshop 8/20/19 Regular Commission Meeting

September 9/3/19 Commission Workshop 9/17/19 Regular Commission Meeting

October 10/1/19 Commission Workshop 10/15/19 Regular Commission Meeting

November 11/5/19 Commission Workshop 11/19/19 Regular Commission Meeting

December 12/3/19 Commission Workshop 12/17/19 Regular Commission Meeting 12/3 – 12/6/19 ACWA Fall Conference, San Diego

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Page Intentionally Blank

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9/25/19 9:00 AM Lake Elsinore/Canyon Lake TMDL Task Force Mtg SAWPA9/26/19 8:00 AM PA 22 Committee Mtg SAWPA

SAWPA9/26/19 11:00 AM OWOW Steering Committee Mtg

10/23/19 9:00 AM Lake Elsinore/Canyon Lake TMDL Task Force Mtg SAWPA

1:30 PM Emerging Constituents Program Task Force Mtg SAWPA

10/22/19

9/18/19 1:30 PM Basin Monitoring Program Task Force Mtg SAWPA

Please Note : We strive to ensure the list of Compensable Meetings set forth above is accurate and up-to-date; the list is

compiled based on input from SAWPA staff and Department Managers regarding meeting purpose and content.

MONTH OF: October 2019

DATE TIME MEETING DESCRIPTION LOCATION

10/17/19 4:00 PM LESJWA Board of Directors Mtg

Elsinore Valley MWD

31315 Chaney Street

Lake Elsinore, CA 92530

10/24/19 8:00 AM

10/1/19 8:30 AM PA 23 Committee Mtg

PA 22 Committee Mtg SAWPA

10/22/19

MONTH OF: September 2019

LOCATIONDATE TIME MEETING DESCRIPTION

9:00 AM MSAR TMDL Task Force Mtg SAWPA

SAWPA

SAWPA COMPENSABLE MEETINGSCommissioners and Alternate Commissioners will receive compensation for attending the meetings listed below, pursuant

to the Commission Compensation, Expense Reimbursement, and Ethics Training Policy.

IMPORTANT NOTE: These meetings are subject to change. Prior to attending any meetings listed below, please confirm

meeting details by viewing the website calendar using the following link:

https://sawpa.org/sawpa-calendar/

9/5/2019

4:50 PM 5












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SAWPA COMMISSION REGULAR MEETING MINUTES

SEPTEMBER 3, 2019

COMMISSIONERS PRESENT Ronald W. Sullivan, Chair, Eastern Municipal Water District Kati Parker, Vice Chair, Inland Empire Utilities Agency Denis R. Bilodeau, Secretary-Treasurer, Orange County Water District Brenda Dennstedt, Western Municipal Water District [9:38 a.m.] T. Milford Harrison, San Bernardino Valley Municipal Water District COMMISSIONERS ABSENT ALTERNATE COMMISSIONERS PRESENT; NON-VOTING

June D. Hayes, Alternate, San Bernardino Valley Municipal Water District

STAFF PRESENT Rich Haller, Larry McKenney, Karen Williams, Dean Unger, Carlos

Quintero, David Ruhl, Ian Achimore, Katie Lucht

The Regular Commission Meeting of the Santa Ana Watershed Project Authority was called to order at 9:31 a.m. by Chair Sullivan at the Santa Ana Watershed Project Authority, 11615 Sterling Avenue, Riverside, California.

1. CALL TO ORDER/PLEDGE OF ALLEGIANCE

2. ROLL CALL Roll call was duly noted and recorded by the Clerk of the Board.

3. PUBLIC COMMENTS Mr. Kelly Rowe, Orange County Water District, noted the importance of California’s water control facilities participating in the Army Corps of Engineers Rehabilitation Inspection Program (Program). Had the Oroville Dam spillway been included in that Program, then the multi-million-dollar repair costs would be paid by the Army Corps and not passed on to state water contractors. FEMA has denied DWR’s submission for the Oroville Dam spillway repair costs; DWR has appealed. Rowe recommended state water contractors advance legislation supporting DWR’s participation. Through the Program, the Army Corps essentially certifies a facility, completes annual inspections, and requires re-certification every five years. If a facility within the Program is damaged by a disaster, the Army Corps will pay for repairing the damage.

4. CONSENT CALENDAR A. APPROVAL OF MEETING MINUTES: AUGUST 20, 2019

Recommendation: Approve as posted.

MOVED, approve the Consent Calendar.

Result: Adopted (Unanimously) Motion/Second: Harrison/Bilodeau Ayes: Bilodeau, Harrison, Parker, Sullivan Nays: None Abstentions: None Absent: Dennstedt

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SAWPA Commission Regular Meeting Minutes

September 3, 2019 Page 2

At the request of Commissioner Harrison, consideration of Agenda Item No. 5.A. was delayed until the full Commission was in attendance. It was noted that Commissioner Dennstedt would arrive momentarily.

The Commission next considered Agenda Item No. 6.A. 5. CLOSED SESSION

Chair Sullivan recessed the meeting to Closed Session at 10:08 a.m. General Manager Rich Haller, Deputy General Manager Karen Williams, and Special Counsel James L. Payne were present during the discussion of Agenda Item No. 5.A.

A. CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(2) One Case

Chair Sullivan resumed Open Session at 10:37 a.m. There was no reportable action.

The Commission next considered Agenda Item No. 6.E.

6. NEW BUSINESS

A. SAWPA BUILDING RENOVATIONS PROJECT UPDATE (CM#2019.93) Carlos Quintero provided a PowerPoint presentation regarding the SAWPA Building Renovations Project, copies of which were provided to the Commission, staff and the public. Chair Sullivan asked when parking lot renovations would be completed and what amount SAWPA would contribute; Mr. Quintero noted that under the MOU approved by the Commission June 4, 2019, WMWD is responsible for 68% of the cost and SAWPA 32%. WMWD will issue a request for bids; approval of the bid results will be brought before the Commission. Parking lot renovations should be completed by early 2020.

Commission Dennstedt arrived at 9:38 a.m. during the discussion of Agenda Item No. 6.A.

Rich Haller noted staff’s appreciation for the building improvements and thanked Commissioner Dennstedt for her insight and direction during both the design and renovation phases of the process.

MOVED, approve an additional transfer of $40,862.00 from Building Reserves.

Result: Adopted (Unanimously) Motion/Second: Parker/Dennstedt Ayes Bilodeau, Dennstedt, Harrison, Parker, Sullivan Nays: None Abstentions: None Absent: None

B. INLAND EMPIRE BRINE LINE DISCHARGER LEASE AGREEMENT (CM#2019.94) David Ruhl provided a PowerPoint presentation regarding the Inland Empire Brine Line Discharger Lease Agreement, copies of which were provided to the Commission, staff and the public. Staff’s recommendation is subject to IEUA contributing an additional 400,000 gpd to the lease capacity pool; the IEUA Board will consider a resolution at its September 18, 2019 meeting. Chair Sullivan noted his support. Commissioner Harrison asked why the Chino Basin Desalter Authority (CDA) has a need for this capacity; Mr. Ruhl stated the CDA is addressing warranty issues with their pelletizer and accordingly have a need to discharge more brine during that process.

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MOVED, approve and authorize the General Manager to execute a Discharger Lease Agreement with the Chino Basin Desalter Authority (CDA) to lease 0.4 million gallons per day (MGD) of brine line pipeline and treatment and disposal capacity right from the Lease Capacity Pool for a period of six (6) months with the possibility of extending the period for an additional six (6) months, subject to adequate commitment to the lease capacity pool.

Result: Adopted (Unanimously) Motion/Second: Parker/Dennstedt Ayes Bilodeau, Dennstedt, Harrison, Parker, Sullivan Nays: None Abstentions: None Absent: None

C. GRANT AGREEMENT AMENDMENT TO THE SARCCUP WATER USE EFFICIENCY (WUE) COMPONENT (CM#2019.95) Ian Achimore provided the PowerPoint presentation on the Grant Agreement Amendment to the SARCCUP Water Use Efficiency Component contained in the agenda packet on pages 25 – 31. SAWPA would require the services of two consultants – the first would field measure irrigable areas for dedicated irrigation meter customers, the second would manage data from retail water agency billing systems and digitize field measurements of the first consultant. Commissioner Bilodeau urged ending the use of Roundup as part of the Arundo Donax removal process within the watershed.

MOVED, approve transfer of approximately $1.2 Million in SARCCUP funding from the SARCCUP Conservation-Based Rates program to fund a new program, SARCCUP Water Use Efficiency (WUE) Budget Assistance; and, authorize the SAWPA General Manager to execute associated amendments to the Department of Water Resources (DWR) SARCCUP Grant Agreement and agreements with the implementing agencies.

Result: Adopted (Unanimously) Motion/Second: Harrison/Dennstedt Ayes Bilodeau, Dennstedt, Harrison, Parker, Sullivan Nays: None Abstentions: None Absent: None

D. SAWPA PARTICIPATION AND ENGAGEMENT IN OUTSIDE ORGANIZATIONS (CM#2019.96) Agenda Item No. 6.D. was continued from the August 20, 2019 meeting. Rich Haller provided an update on the revised outside organization list provided in the agenda packet on pages 35 – 43 and SAWPA’s responses to the questions and comments raised by Commissioners. SAWPA has joined the California Special Districts Association (CSDA) and staff will attend the annual conference later in September.

Chair Sullivan encouraged continued engagement with the Public Policy Institute of California (PPIC), and supported individual participation in the American Water Resources Association (AWRA).

This item was for informational and discussion purposes; no action was taken on Agenda Item No. 6.D.

The Commission next considered Agenda Item No. 5.A.

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E. LEGAL SERVICES, RESULTS OF REQUEST FOR QUALIFICATIONS (RFQ) | AWARD OF

CONTRACT (CM#2019.97) Rich Haller provided the PowerPoint presentation regarding legal services contained in the agenda packet on pages 58 – 63, reviewed the Legal Services RFQ process to date and historical information regarding legal services, and noted the following options:

Option 1 Consultant-provided legal services, inclusive of the role of SAWPA General Counsel (staff’s recommendation)

Option 2 Consultant-provided legal services supplementing in-house General Counsel (current approach)

Chair Sullivan opened the floor for questions from the Commissioners.

Commissioner Dennstedt voiced concern regarding a possible conflict of interest; James D. Ciampa, Lagerlof, Senecal Gosney & Kruse LLP, has been engaged on behalf of Santa Rosa Regional Resources Authority (SRRRA), a JPA inclusive of WMWD, as well as directly on behalf of WMWD. Mr. Ciampa was present in the audience and noted the one issue he was involved with relating to WMWD was for a very limited Public Records Act dispute; at the request of general counsel, who had a conflict of interest, he stepped in and assisted with that one matter which was the extent of his representation.

Commissioner Dennstedt noted there were differences in the scope of work set forth in the RFQ and the proposed task order. Mr. Haller noted the task order referenced a work plan to be prepared by the consultant subsequent to a legal review after which a detailed scope of work would be prepared. The proposed task order would initiate that process but does not represent the full range of legal services that would be provided. Commissioner Dennstedt stated her review of past legal services hours and proposed legal services billable hours represented a significant increase in cost for legal services. Haller noted that during the historical periods reviewed for analysis when SAWPA utilized consultant legal services the hours worked per year were less than the hours allocated to legal services by in-house legal counsel, but the comparison is challenging because necessary legal services will vary from year-to-year; this consideration includes efficiency in delivery as well as quality of legal services. Commissioner Dennstedt voiced concern that the task order amount and scope of work were not matching up; the budgeted amount did not support the work set forth. Haller stated the task order was to initiate activities – assessment/status of legal documents, identify detailed work plan and scope of work to update those documents. Based on the work plan, staff would come back to the Commission for additional funding. Commissioner Dennstedt noted the scope of work included a task to update the employee handbook and stated she did not believe the number of hours needed to complete that task would be covered by the task order amount.

Commissioner Parker noted the difference in legal services required by SAWPA during a portion of the historical periods reviewed for analysis (2017 and 2018) which could have possibly skewed the numbers. Haller stated the scope of work varies from year-to-year and noted that the numbers were an average of the historical periods.

Commissioner Dennstedt again stated the scope of work in the RFQ and task order were not the same; cost savings should be reflected in what was presented for consideration and she did not see any cost savings benefit. Commissioner Parker agreed she did not see any cost savings benefit, which she believed to be the basis of the item.

Commissioner Bilodeau noted during his tenure at OCWD he has experienced both models – in-house counsel and consultant provided legal services. Having a firm in place has been much more productive

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for staff due to the breadth of skills available; for a smaller agency, he voiced support having consultant provided legal services to perform work when and as needed on specific tasks.

Chair Sullivan noted that each SAWPA member agency has outside legal counsel for a reason – varied expertise that can be accessed at any time as needed. Other than increased hours due to litigation during 2016-2018, during his time on the Commission there were normal, day-in-day-out practices at SAWPA and this is reflective of potential cost savings by engaging consultant legal services. Chair Sullivan favored Option 1; the General Manager has determined engaging consultant legal counsel would lead to a cost savings when comparing $75,000-$125,000 to the current burdened rate for in-house counsel, and that is the recommendation to the Commission.

Commissioner Dennstedt made a motion to remain with current counsel, then clarified her motion was for Option 2. Commissioner Parker seconded the motion. Chair Sullivan called for a roll call vote. Commissioner Harrison asked for clarification if the motion included appointment of a firm to serve as outside counsel supplementing in-house counsel. Commissioner Dennstedt stated that engaging outside counsel should be at the discretion of the Commission at the time those services are needed, and that she was not in support of a $75,000 task order for outside legal services. She was not opposed to retaining a firm for outside legal services for specific consultation but was not in support of spending $75,000 to do that. Commissioner Dennstedt noted she was not present during the meeting when the firms presented to the Commission and accordingly deferred to the Commission for a specific firm recommendation. Commissioner Harrison supported the top-ranked firm, Lagerlof Senecal Gosney & Kruse LLP, and stated the retainer could be negotiated by the General Manager. Chair Sullivan asked Commissioner Harrison to re-state. Commissioner Harrison stated he would support Lagerlof Senecal Gosney & Kruse LLP as designated outside counsel; Commissioner Dennstedt noted to support in-house counsel. Chair Sullivan asked if it was for Option 2; Commissioner Harrison stated yes. Commissioner Parker supported that motion for Option 2 to stay with in-house counsel, keeping Lagerlof Senecal Gosney & Kruse LLP on retainer.

Commissioner Bilodeau advised the Chair he wanted to make a substitute motion, noting he could not support Option 2 because that would just be adding on to an existing cost structure for legal services which he did not think was financially prudent. Commissioner Bilodeau made a motion for Option 1 as recommended by staff, and to accept the recommendation of the number one ranked firm Lagerlof Senecal Gosney & Kruse LLP. Chair Sullivan seconded the motion.

Larry McKenney noted for the Commission’s consideration that the average hours of legal services provided from 2003-2011 (before he was hired) was 589 hours; if you consider $75,000 to cover providing those services the hourly rate would be $127; none of the firms have proposed rates close to that amount. Even with the budget of $125,000, the hourly rate would be $212. The Commission memo notes the current cost for in-house legal services is $150/hour.

McKenney also noted the following comparable information for consideration.

• Municipal Water District of Orange County (MWDOC); 30-member staff, an administrative agency with no facilities to operate and they budget $200,000 for legal services with Best Best & Krieger.

• South Orange County Wastewater Authority; joint powers authority providing sewerage treatment services; 64 employees; averaged $300,000 for legal services in their budget over the past five years, $182,000 of which is allocated to their administrative function and not facilities related.

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• SAWPA averaged budgeting $175,000 for legal services annually over the preceding 10 years

prior to hiring in-house legal counsel in 2011.

• Missing from the discussion for cost comparison is the fact that no one has asked him for input on ways that his current effective costs could be reduced. The model currently utilized to engage outside counsel when needed has worked well; mainly this has been for litigation services (he noted litigation services was not in the RFQ scope of work).

• Because his position is a hybrid, clearly he does work for the General Manager – he is an employee and his performance has been evaluated by the General Manager. He would like to continue being the Commission’s General Counsel; if cost is the concern, then changing his effective cost to the agency should be on the table for discussion which has not even been brought up for consideration.

Chair Sullivan noted there was a substitute motion before the Commission for consideration and called for a vote. MOVED, approve staff’s recommendation to utilize consultant-provided legal services, inclusive of the role of SAWPA General Counsel as set forth in Option 1, authorize the General Manager to execute an Agreement for Services with Lagerlof Senecal Gosney & Kruse LLP and issue a Task Order for up to an amount not to exceed $75,000.

Result: Failed (Roll Call Vote Taken) Motion/Second: Bilodeau/Sullivan Ayes Bilodeau, Sullivan Nays: Dennstedt, Harrison, Parker Abstentions: None Absent: None Chair Sullivan noted the Commission would next consider the original motion made by Commissioner Dennstedt, asking for clarification as to Option 2 and whether there would still be a Task Order for outside counsel not to exceed $75,000. Commissioner Dennstedt stated her motion is to stay with current counsel and engage Lagerlof Senecal Gosney & Kruse LLP on retainer as special counsel; she was not in support of issuing a $75,000 Task Order. Attorney Ciampa noted from the audience the firm would not charge a monthly retainer fee; they would provide on-call services. Commissioner Dennstedt agreed that would be her motion. Haller stated that, working with in-house counsel and special counsel, a work plan would be developed to identify specific work and required level of effort; we do need to update human resources documents, contract templates, etc. Commissioner Dennstedt thanked Haller, stating that is her motion. Chair Sullivan noted the original motion was to retain in-house legal counsel, but what if the General Manager states he doesn’t want in-house counsel two months down the line – the Commission doesn’t have a vote because he reports to the General Manager not to the Commission. Commissioner Dennstedt stated that should be added to a future agenda for discussion at a later time. Chair Sullivan called for a roll call vote.

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MOVED, retain in-house General Counsel, approve Option 2 for consultant-provided legal services supplementing in-house General Counsel, authorize the General Manager to execute an Agreement for Services with Lagerlof Senecal Gosney & Kruse LLP, and direct the General Manager to develop a work plan to identify specific work and required level of effort.

Result: Passed (Roll Call Vote Taken) Motion/Second: Dennstedt/Parker Ayes Dennstedt, Harrison, Parker Nays: Bilodeau, Sullivan Abstentions: None Absent: None

7. INFORMATIONAL REPORTS

The following oral/written reports/updates were received and filed. Rich Haller stated the Regional Board asked SAWPA to provide input on the California Water Resilience Portfolio during the September 13 meeting in Anaheim. Larry McKenny provided a follow up report on SB1.

A. CHAIR’S COMMENTS/REPORT There were no comments/reports from the Chair.

B. COMMISSIONERS’ COMMENTS There were no comments from the Commissioners.

C. COMMISSIONERS’ REQUEST FOR FUTURE AGENDA ITEMS Rich Haller confirmed the General Manager annual review would be placed on the next agenda.

8. ADJOURNMENT

There being no further business for review, Chair Sullivan adjourned the meeting at 11:21 a.m. Approved at a Regular Meeting of the Santa Ana Watershed Project Authority Commission on Tuesday, September 17, 2019. _____________________________________ Ronald W. Sullivan, Chair Attest: _____________________________________ Kelly Berry, CMC Clerk of the Board

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Investment Security Purchase Maturity Call Date Yield To Investment Market Value Unrealized Coupon InterestType Type CUSIP Dealer Date Date (if appl) Par Value Maturity Cost Current Month Gain / (Loss) Rate Earned

Agency FHLMC 3137EAEC9 WMS 09-16-16 08-12-21 No Call 1,000,000.00$ 1.335% 990,060.00$ 992,285.00$ 2,225$ 1.125% 1,133.79$ Agency FHLMC 3137EADB2 WMS 04-17-17 01-13-22 No Call 500,000.00$ 2.375% 512,767.00$ 509,393.00$ (3,374)$ 2.375% 1,008.56$ Agency FHLB 313383HU8 WMS 06-16-16 06-12-20 No Call 1,000,000.00$ 1.080% 1,026,088.00$ 999,090.00$ (26,998)$ 1.750% 917.27$ Agency FHLB 313379Q69 WMS 12-14-17 06-10-22 No Call 1,000,000.00$ 2.150% 998,930.00$ 1,016,188.00$ 17,258$ 2.125% 1,826.12$ Agency FNMA 3135G0H55 WMS 12-28-15 12-28-20 No Call 1,000,000.00$ 1.830% 1,002,140.00$ 1,002,698.00$ 558$ 1.875% 1,554.26$ Agency FNMA 3135G0F73 WMS 06-16-16 11-30-20 No Call 1,000,000.00$ 1.150% 1,015,157.00$ 997,414.00$ (17,743)$ 1.500% 976.72$ Agency USTN 912828WC WMS 11-17-15 10-31-20 No Call 1,000,000.00$ 1.638% 1,005,312.50$ 1,000,156.00$ (5,157)$ 1.750% 1,391.04$ Agency USTN 912828G61 WMS 11-17-15 11-30-19 No Call 1,000,000.00$ 1.469% 1,001,210.94$ 998,594.00$ (2,617)$ 1.500% 1,247.59$ Agency USTN 912828L32 WMS 06-17-16 08-31-20 No Call 500,000.00$ 1.030% 507,070.31$ 497,969.00$ (9,101)$ 1.375% 437.53$ Agency USTN 912828L65 WMS 06-16-16 09-30-20 No Call 500,000.00$ 1.041% 506,992.19$ 497,890.50$ (9,102)$ 1.375% 441.95$ Agency USTN 912828L99 WMS 06-16-16 10-31-20 No Call 500,000.00$ 1.051% 506,914.06$ 497,929.50$ (8,985)$ 1.375% 446.10$ Agency USTN 912828S76 WMS 12-14-17 07-31-21 No Call 1,000,000.00$ 2.013% 969,062.50$ 991,914.00$ 22,852$ 1.125% 1,709.51$ CORP Apple Inc 037833AK6 WMS 10-15-18 05-03-23 No Call 500,000.00$ 3.360% 479,898.50$ 510,264.50$ 30,366$ 2.400% 1,426.86$ CORP Toyota Motor Corp Credit 89236TFNO WMS 10-15-18 09-20-23 No Call 500,000.00$ 3.550% 497,747.50$ 529,226.50$ 31,479$ 3.450% 1,507.53$

CD Ally Bank 02006L2F9 WMS 01-13-15 04-20-20 No Call 248,000.00$ 1.800% 248,000.00$ 248,264.29$ 264$ 1.800% 379.13$ CD American Express 02587DP85 WMS 04-19-17 04-19-21 No Call 248,000.00$ 2.250% 248,000.00$ 248,000.00$ -$ 2.250% 473.92$ CD American Express BK FSB AN4199708 WMS 05-10-17 05-10-21 No Call 248,000.00$ 2.200% 248,000.00$ 248,000.00$ -$ 2.200% 463.39$ CD Sallie Mae BK SLT Lake City 7954503Q6 MBS 07-01-19 06-27-22 No Call 247,000.00$ 2.250% 247,000.00$ 247,000.00$ -$ 2.250% 456.78$ CD Morgan Stanley Bank NA 6169OUHP8 MBS 07-05-19 07-05-22 No Call 247,000.00$ 2.200% 247,000.00$ 247,000.00$ -$ 2.200% 387.08$ CD Goldman Sachs Bank USA 38148PUV7 WMS 12-20-17 12-20-22 No Call 248,000.00$ 2.500% 248,000.00$ 248,000.00$ -$ 2.500% 526.58$

Total Actively Invested Funds 12,486,000.00$ 12,505,350.50$ 12,527,276.29$ 21,926$ 1.776% 18,711.71$

Total Local Agency Investment Fund 43,975,929.01$ 2.341% 87,434.99$

Total Invested Cash 12,486,000.00$ 56,481,279.51$ 2.216% 106,146.70$

Key to Security Type: Key to Dealers:FHLB = Federal Home Loan Bank FCS = FinaCorp SecuritiesFHLMC = Federal Home Loan Mortgage Corporation MBS = Multi-Bank SecuritiesFNMA = Federal National Mortgage Association MS = Mutual SecuritiesUSTN = US Treasury Note RCB = RBC Dain RauscherCORP = Corporate Note SA = Securities AmericaCD = Certificate of Deposit TVI = Time Value InvestmentsGDB = Goldman Sachs Bank WMS = Wedbush Morgan SecuritiesAEC = American Express Centurion

Santa Ana Watershed Project AuthorityINVESTMENT PORTFOLIO - MARKED TO MARKET - UNREALIZED GAINS & LOSSES

August 31, 2019SAWPA primarily maintains a "Buy and Hold" investment philosophy, with all investments held by US Bank via a third-party safekeeping contract.

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Aug-2019

0.0%

1.0%

2.0%

3.0%

Securities LAIF Avg Rate ofReturn

Interest Rate Analysis

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Aug-2019

Securities, $12,505,351,

22%

LAIF, $43,975,929,

78%

Investments$56,481,280

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Aug-2019

Securities, $18,712, 18%

LAIF, $87,435, 82%

Interest$106,147

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Santa Ana Watershed Project AuthorityCash Transaction Report

Month of July 2019

Below is a summary of cash transactions completed during the month in the Authority's checking account with US Bank. Attached are summaries by major revenue and expense classifications.

Cash Receipts and Deposits to Account 2,956,043.48$

Net Investment Transfers 1,011,562.50

Cash Disbursements (2,569,509.72)

Net Change for Month 1,398,096.26$

Balance at Beginning of Month 1,660,147.39

Balance at End of Month per General Ledger 3,058,243.65$

Collected Balance per Bank Statement 3,092,709.87$

ACCOUNTS PAYABLE RECONCILIATION

Accounts Payable Balance @ 06/30/19 2,763,628.37$

Invoices Received for July 2019 14,865,110.21 Invoices Paid by check/wire during July 2019 (see attached register) (1,296,506.91)

Accounts Payable Balance @ 07/31/19 16,332,231.67$ .

21

CASH RECEIPTS

Brine Line Operating Revenues 992,969.11$ Member Agency Contributions 1,221,572.00 Participant Fees 266,598.48 LESJWA Admin Reimbursement 29,129.90 Grant Proceeds - Prop 1 438,668.44 Other Grant Funds (OWOW) 6,993.37 Other 112.18

Total Receipts and Deposits 2,956,043.48$

INVESTMENT TRANSFERS

Transfer of Funds:From (to) LAIF 1,000,000.00$ From (to) Legal Defense Fund - From (to) LESJWA - From (to) Investments 11,562.50

Total Investment Transfers 1,011,562.50$

CASH DISBURSEMENTS

By Check:PayrollOperations 1,790,583.04

Total Checks Drawn 1,790,583.04$

By Cash Transfer:Payroll 191,679.34$ Payroll Taxes 89,843.23 Investment Purchases 494,076.13 Take Care (AFLAC) 3,327.98

Total Cash Transfers 778,926.68$

Total Cash Disbursements 2,569,509.72$

22

Category Check # Check Date Type Vendor Check Amount

Accrued Volumetric Costs EFT02731 7/11/2019 CHK Orange County Sanitation District 883,488.85$ Accrued Volumetric Costs Total 883,488.85$

Asset Clearing EFT02785 7/24/2019 CHK Total Plan Business Interior 1,931.96$ Asset Clearing EFT02787 7/24/2019 CHK Tricord Floor Covering 18,080.41$ Asset Clearing Total 20,012.37$

Auto Expenses 3781 7/11/2019 CHK County of Riverside 1,099.60$ Auto Expenses 3794 7/19/2019 CHK County of Riverside 1,006.35$ Auto Expenses Total 2,105.95$

Benefits 3769 7/11/2019 CHK ACWA/JPIA 51,312.19$ Benefits 3775 7/11/2019 CHK Cal PERS Long Term Care Program 102.04$ Benefits 3784 7/11/2019 CHK Mutual Of Omaha 2,907.67$ Benefits 3789 7/19/2019 CHK AFLAC 716.04$ Benefits 3790 7/19/2019 CHK Cal PERS Long Term Care Program 102.04$ Benefits 3795 7/19/2019 CHK WageWorks 134.00$ Benefits EFT02732 7/11/2019 CHK Vantagepoint Transfer Agents 2,540.35$ Benefits EFT02739 7/11/2019 CHK Vantagepoint Transfer Agents 374.88$ Benefits EFT02755 7/19/2019 CHK Vantagepoint Transfer Agents 2,540.35$ Benefits EFT02763 7/19/2019 CHK Vantagepoint Transfer Agents 392.83$ Benefits P036602 7/11/2019 WDL Public Employees' Retirement 20,239.95$ Benefits P036603 7/11/2019 WDL CalPERS Supplemental Income 4,134.50$ Benefits P036653 7/19/2019 WDL Public Employees' Retirement 22,439.52$ Benefits P036654 7/19/2019 WDL CalPERS Supplemental Income 4,134.50$ Benefits P036655 7/19/2019 WDL Public Employees' Retirement 235,128.00$ Benefits WDL000004873 7/3/2019 WDL Takecare 46.08$ Benefits WDL000004874 7/5/2019 WDL Takecare 1,000.08$ Benefits WDL000004876 7/9/2019 WDL Takecare 192.30$ Benefits WDL000004885 7/19/2019 WDL Takecare 40.00$ Benefits WDL000004886 7/22/2019 WDL Takecare 1,103.10$ Benefits WDL000004889 7/23/2019 WDL Takecare 192.30$ Benefits WDL000004890 7/25/2019 WDL Takecare 739.12$ Benefits WDL000004891 7/26/2019 WDL Takecare 15.00$ Benefits Total 350,526.84$

Building Lease 3805 7/24/2019 CHK Wilson Property Services, Inc 1,530.00$ Building Lease Total 1,530.00$

Consulting EFT02740 7/11/2019 CHK Integrated Systems Solutions 82.50$ Consulting EFT02742 7/11/2019 CHK Trussell Technologies, Inc. 17,406.64$ Consulting EFT02743 7/11/2019 CHK Dudek 7,620.00$ Consulting EFT02744 7/11/2019 CHK Woodard & Curran Inc. 3,216.25$ Consulting EFT02765 7/19/2019 CHK Woodard & Curran Inc. 29,465.54$ Consulting EFT02774 7/24/2019 CHK West Coast Advisors 9,750.00$ Consulting EFT02779 7/24/2019 CHK CDM Smith, Inc. 27,171.15$ Consulting EFT02780 7/24/2019 CHK Accent Computer Solutions Inc 4,452.00$ Consulting EFT02781 7/24/2019 CHK WEKA Inc 7,400.00$ Consulting EFT02782 7/24/2019 CHK DeGrave Communications 3,097.08$ Consulting EFT02784 7/24/2019 CHK Water Systems Consulting 11,059.25$ Consulting Total 120,720.41$

Contributions 3783 7/11/2019 CHK Public Policy Institute of California 10,000.00$ Contributions Total 10,000.00$

Credit Cards P036776 7/10/2019 WDL US Bank 9,920.60$ Credit Cards Total 9,920.60$

Director Costs EFT02752 7/19/2019 CHK Denis R Bilodeau 53.36$ Director Costs EFT02753 7/19/2019 CHK Eastern Municipal Water District 1,200.84$ Director Costs EFT02758 7/19/2019 CHK Western Municipal Water District 254.08$ Director Costs EFT02766 7/19/2019 CHK Jasmin Hall 95.12$ Director Costs EFT02767 7/19/2019 CHK Kati Parker 62.64$ Director Costs EFT02769 7/19/2019 CHK June Hayes 51.04$ Director Costs EFT02770 7/19/2019 CHK T. Milford Harrison 119.48$ Director Costs Total 1,836.56$

Dues 3792 7/19/2019 CHK Government Finance Officers 160.00$ Dues 3803 7/24/2019 CHK Corona Chamber of Commerce 660.00$

Santa Ana Watershed Project AuthorityCheck Detail

Jul-19

Page 1 of 3

23



Jul-19

Dues Total 820.00$

Employee Recruitment 3808 7/24/2019 CHK Donnoe & Associates Inc 495.00$ Employee Recruitment Total 495.00$

Employee Reimbursement EFT02730 7/11/2019 CHK Richard Whetsel 14.85$ Employee Reimbursement EFT02741 7/11/2019 CHK Carlos Quintero 84.78$ Employee Reimbursement EFT02745 7/11/2019 CHK Scott Mebust 125.00$ Employee Reimbursement EFT02746 7/11/2019 CHK Lucas Gilbert 214.04$ Employee Reimbursement EFT02747 7/11/2019 CHK Michael Plasencia 125.00$ Employee Reimbursement EFT02757 7/19/2019 CHK Peter Vitt 1,008.10$ Employee Reimbursement EFT02761 7/19/2019 CHK Sara Villa 106.12$ Employee Reimbursement EFT02764 7/19/2019 CHK Zyanya Ramirez 73.23$ Employee Reimbursement EFT02772 7/19/2019 CHK Katie Lucht 122.51$ Employee Reimbursement Total 1,873.63$

Equipment Leased 3802 7/24/2019 CHK GreatAmerica Financial Services 1,452.56$ Equipment Leased EFT02733 7/11/2019 CHK Konica Minolta Business Solutions 764.77$ Equipment Leased Total 2,217.33$

Facility Repair & Maintenance 3780 7/11/2019 CHK Innerline Engineering 7,937.00$ Facility Repair & Maintenance 3782 7/11/2019 CHK TNT Elevator Inc 250.00$ Facility Repair & Maintenance 3800 7/24/2019 CHK Innerline Engineering 27,388.75$ Facility Repair & Maintenance 3801 7/24/2019 CHK Ayala Engineering 11,400.00$ Facility Repair & Maintenance 3804 7/24/2019 CHK RivCo Mechanical Services 1,867.02$ Facility Repair & Maintenance 3806 7/24/2019 CHK Industrial Fire Protection 431.64$ Facility Repair & Maintenance EFT02759 7/19/2019 CHK Western Exterminator Co. 123.00$ Facility Repair & Maintenance EFT02768 7/19/2019 CHK Riverside Cleaning 1,300.00$ Facility Repair & Maintenance EFT02773 7/24/2019 CHK Orange County Sanitation District 114,759.85$ Facility Repair & Maintenance EFT02776 7/24/2019 CHK Green Meadows Landscape 925.00$ Facility Repair & Maintenance EFT02777 7/24/2019 CHK Golden State Fire Protection 850.00$ Facility Repair & Maintenance Total 167,232.26$

Insurance Expense 3788 7/11/2019 CHK Zenith Insurance Company 4,262.00$ Insurance Expense 3793 7/19/2019 CHK Alliant Insurance Services 16,730.00$ Insurance Expense Total 20,992.00$

Investment WDL000004872 7/1/2019 WDL Sallie Mae BK SLT Lake City 247,076.13$ Investment WDL000004875 7/5/2019 WDL Morgan Stanley Bank NA 247,000.00$ Investment Total 494,076.13$

Lab Costs EFT02737 7/11/2019 CHK E. S. Babcock & Sons, Inc. 414.00$ Lab Costs EFT02738 7/11/2019 CHK Camet Research 1,125.00$ Lab Costs EFT02760 7/19/2019 CHK E. S. Babcock & Sons, Inc. 1,527.00$ Lab Costs EFT02775 7/24/2019 CHK E. S. Babcock & Sons, Inc. 2,043.00$ Lab Costs Total 5,109.00$

Office Expense 3778 7/11/2019 CHK Staples Business Advantage 425.59$ Office Expense EFT02756 7/19/2019 CHK Konica Minolta Business Solutions 740.61$ Office Expense EFT02762 7/19/2019 CHK Iron Mountain 162.60$ Office Expense Total 1,328.80$

Other Contract Services EFT02734 7/11/2019 CHK Western Municipal Water District 8,724.58$ Other Contract Services EFT02735 7/11/2019 CHK Water Education Foundation 17,133.90$ Other Contract Services EFT02748 7/11/2019 CHK Local Government Commission 3,099.90$ Other Contract Services EFT02749 7/11/2019 CHK University Enterprises Corporation 63,032.91$ Other Contract Services EFT02750 7/11/2019 CHK California Rural Water Association 7,926.09$ Other Contract Services EFT02751 7/11/2019 CHK UC Irvine 40,438.64$ Other Contract Services EFT02771 7/19/2019 CHK IU Group 1,533.40$ Other Contract Services EFT02783 7/24/2019 CHK Local Government Commission 4,181.82$ Other Contract Services EFT02778 7/24/2019 CHK Orange County Coastkeeper 18,591.00$ Other Contract Services Total 164,662.24$

Other Expense 3796 7/19/2019 CHK Bri Communications 5,600.00$ Other Expense Total 5,600.00$

Payroll WDL000004868 7/5/2019 WDL Direct Deposit 7/5/2019 99,511.49$ Payroll WDL000004869 7/5/2019 WDL PR Tax - Federal 37,949.96$ Payroll WDL000004870 7/5/2019 WDL PR Tax - State 8,915.98$ Payroll WDL000004882 7/19/2019 WDL Direct Deposit 7/19/2019 92,167.85$

Page 2 of 3

24



Jul-19

Payroll WDL000004883 7/19/2019 WDL PR Tax - Federal 34,863.41$ Payroll WDL000004884 7/19/2019 WDL PR Tax - State 8,113.88$ Payroll Total 281,522.57$

Petty Cash 3776 7/11/2019 CHK Karen Williams, Custodian of Petty Cash 183.23$ Petty Cash Total 183.23$

Prop84 EFT02754 7/19/2019 CHK ESRI Inc. 7,000.00$ Prop84 Total 7,000.00$

Safety EFT02736 7/11/2019 CHK Underground Service Alert 321.64$ Safety Total 321.64$

Shipping/Postage 3772 7/11/2019 CHK Golden State Overnight 6.52$ Shipping/Postage Total 6.52$

Software 3798 7/24/2019 CHK Solver Inc. 4,672.69$ Software EFT02780 7/24/2019 CHK Accent Computer Solutions Inc 2,095.98$ Software 3799 7/24/2019 CHK Aatrix Software, Inc. 399.95$ Software Total 7,168.62$

Temporary Services EFT02786 7/24/2019 CHK Mantek Solutions, Inc. 2,736.00$ Temporary Services Total 2,736.00$

Utilities 3770 7/11/2019 CHK Riverside, City of 2,035.15$ Utilities 3771 7/11/2019 CHK Riverside, City of 73.64$ Utilities 3773 7/11/2019 CHK AT&T 780.38$ Utilities 3774 7/11/2019 CHK AT&T 1,018.26$ Utilities 3777 7/11/2019 CHK Southern California Edison 17.58$ Utilities 3779 7/11/2019 CHK Burrtec Waste Industries Inc 83.92$ Utilities 3785 7/11/2019 CHK Verizon Wireless 130.61$ Utilities 3786 7/11/2019 CHK Verizon Wireless 266.80$ Utilities 3787 7/11/2019 CHK Verizon Wireless 1,144.26$ Utilities 3791 7/19/2019 CHK Southern California Edison 108.13$ Utilities 3797 7/24/2019 CHK AT&T 297.45$ Utilities 3807 7/24/2019 CHK DIRECTV 66.99$ Utilities Total 6,023.17$

Grand Total 2,569,509.72$

Accounts Payable

Checks 1,988,662.10$ Wire Transfers 295,997.07$

2,284,659.17$

Take Care 3,327.98$ OtherPayroll 281,522.57$

Total Disbursements for July 2019 2,569,509.72$

Page 3 of 3

25

RemainingCheck # Check Date Task # Task Description Vendor Name Total Contract Check Amount Contract Amount Notes/Comments

EFT02780 7/24/2019 ACS100-11 IT Support Accent Computer Solutions 186,800.00$ 3,702.00$ 111,680.43$ EFT02780 7/24/2019 ACS100-12 Intel Unit Server Build and Deploy Accent Computer Solutions 3,600.00$ 750.00$ 1,050.00$

EFT02779 7/24/2019 CDM386-13 SAR Bacteria Monitoring Program CDM Smith, Inc. 353,748.00$ 27,171.15$ 70,322.28$

EFT02782 7/24/2019 DEGR392-04 Social Media Support DeGrave Communicaitons 30,000.00$ 3,097.08$ 526.28$

EFT02743 7/11/2019 DUDK373-06 Prop1 Round 1 Grant App Dudek 91,310.00$ 7,620.00$ 78,412.61$

EFT02740 7/11/2019 INSOL100-11 Great Plains Annual Service & Support Integrated Systems Solutions 3,750.00$ 82.50$ 393.00$

EFT02742 7/11/2019 TRU240-22 Monthly County Line Solids Analysis Trussell Technologies Inc 9,664.00$ 1,936.64$ 2,269.44$ EFT02742 7/11/2019 TRU240-23 2019 BL Annual Review Trussell Technologies Inc 49,899.00$ 15,470.00$ 15,093.10$

EFT02784 7/24/2019 WSC374-01 Recomputation of Ambient Water Quality Water Systems Consulting 373,973.00$ 11,059.25$ 352,785.50$

EFT02781 7/24/2019 WEKA240-02 IEBL Replacement Value Assessment WEKA Inc. 50,000.00$ 7,400.00$ 42,600.00$

EFT02774 7/24/2019 WCA100-03-02 State Legislative Consulting Services FY19-20 West Coast Advisors 235,000.00$ 9,750.00$ 166,750.00$

EFT02765 7/19/2019 RMC504-401-04 SARCCUP Program Management Services Woodard & Curran Inc. 224,485.00$ 29,465.54$ 61,931.32$ EFT02744 7/11/2019 RMC504-401-05 Technical Writing and Outreach Support Woodard & Curran Inc. 37,411.00$ 3,216.25$ 19,794.50$

120,720.41$

Jul-19

Santa Ana Watershed Project AuthorityConsulting

26

COMMISSION MEMORANDUM NO. 2019.98 DATE: September 17, 2019 TO: SAWPA Commission SUBJECT: Inter-Fund Borrowing – July 2019 PREPARED BY: Karen Williams, DGM/CFO RECOMMENDATION It is recommended that the Commission receive and file the informational report on short-term, cash-flow inter-fund borrowing. DISCUSSION On December 13, 2005, the Commission approved Resolution No. 452, Inter-Fund and Inter-Project Loan Policy. Staff was directed to bring back an accounting of the loans each month for review when the total exceeded $250,000 in aggregate. The following projects, with negative cash flow, are listed below with the amounts borrowed from SAWPA General Fund Reserves in July 2019. The total amount borrowed is over the aggregate $250,000 amount recommended in Resolution No. 452, Inter-Fund and Inter-Project Loan Policy. The Commission has requested that this item be brought back each month as an informational item when the loan amount is over the $250,000 aggregate amount.

Fund Fund Name 06/30/19 Balance

Loan Receipts

New Charges

07/31/19 Balance

130 Proposition 84 Admin $70,041.96 ($0.00) $0.00 $70,041.96 135 Proposition 84 Admin R2 67,830.45 (0.00) 4,464.97 72,295.42 140 Proposition 84 Admin R3 51,336.31 (0.00) 21,600.47 72,936.78 145 Proposition 84 Admin R4 111,655.60 (0.00) 12,838.42 124,494.02 398 Proposition 1 – DACI Grant 280,413.85 (259,112.46) 1,680.48 22,981.87 477 LESJWA Administration 27,753.11 (29,129.90) 12,150.28 10,773.49 504 Prop 84 - Drought Projects 148,802.48 (0.00) 24,442.49 173,244.97

Total Funds Borrowed $757,833.76 ($288,242.36) $77,177.11 $546,768.51 General Fund Reserves Balance $3,347,278.15 Less Amount Borrowed 546,768.51 Balance of General Fund Reserves $2,800,509.64 The following table lists each fund that has a negative cash flow, the source of funding for the fund, how often the fund is billed, and the projected rate of payment for the fund.

27

CM#2019.98 September 17, 2019 Page 2

NEGATIVE CASH-FLOW FUNDS

Fund No. Source of Funding Billing Frequency

Projected Payment Time

130,135,140, 145 – Proposition 84 Admin DWR – Prop 84 Grant Monthly/Quarterly Up to 4 months 398 – Proposition 1 – DACI Grant DWR – Prop 1 Grant Monthly Up to 4 months

477 – LESJWA Admin Reimbursement from LESJWA Monthly 2 to 4 weeks 504 - Proposition 84 Drought Projects DWR – Prop 84 Grant Monthly Up to 4 months

504 – Proposition 84 SARCCUP Projects DWR – Prop 84 Grant Monthly/Quarterly Up to 4 months

Fund 130 The outstanding balance of the funds due from DWR is the mandatory 10% retention from each invoice billed. Retention funds will not be released until the Proposition 84 Round I contract is completed in 2018. Fund 135 This fund is for the administration of Proposition 84 Round II grant funds. These funds will be billed quarterly and 10% will be withheld for retention. Fund 140 This fund is for the administration of Proposition 84 Drought Round grant funds. These funds will be billed monthly and 10% will be withheld for retention. Fund 145 This fund is for the administration of Proposition 84 Round 2015 grant funds. These funds will be billed quarterly and 10% will be withheld for retention. Fund 398 This fund is for the Proposition 1 DACI grant project. These funds will be billed monthly once the contracts with DWR have been signed. Fund 477 Each month LESJWA is billed the cost for administering the JPA. Once the bill is received, LESJWA submits payment within two weeks. Fund 504 This fund is for the implementation of drought related projects and SARCCUP projects which are administered through PA22 and PA23.

28

CM#2019.98 September 17, 2019 Page 3 The following graph shows the total budget, total project costs to date, and the amount remaining on each grant.

Fund Fund Name Total Budget

Project Costs Through 07/31/19

Remaining Grant Budget

130 Proposition 84 Admin R1 $660,004 ($571,491) $88,513 135 Proposition 84 Admin R2 627,405 (487,492) 139,913 140 Proposition 84 Admin R3 887,860 (691,557) 196,303 145 Proposition 84 Admin R4 3,213,384 (647,922) 2,565,462 373 OWOW Planning Grant 250,000 (250,000) 0 397 Energy Water DAC Grant (WECAN) 2,339,824 (2,339,824) 0 398 Proposition 1 – DACI Grant 6,300,000 (1,489,495) 4,810,505 504 Prop 84 - Drought Projects 5,547,816 (3,361,583) 2,186,233 504 Prop 84 – 2015 Round (SARCCUP) 1,543,810 (514,691) 1,029,119

Totals $21,370,103 ($10,354,055) $11,016,048 The following graph shows projected inter-fund loan balances, total unrestricted General Fund Reserves available for loans, and projected cash net of loans through June 2020. The projected loan balance is expected to remain over the $250,000 aggregate limit through June 2020 because of Proposition 1 and 84 grants, but can be covered by General Fund Reserves without a major impact on cash flow.

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Jul-1

9

Aug-

19

Sep-

19

Oct

-19

Nov

-19

Dec-

19

Jan-

20

Feb-

20

Mar

-20

Apr-

20

May

-20

Jun-

20

Thou

sand

s

Projected General Cash / Reserves Fund Balance

Unrestricted Reserve Funds Interfund Loans

$250,000 Projected Cash Net of Loans

29

CM#2019.98 September 17, 2019 Page 4 RESOURCE IMPACTS The funds borrowed from the General Fund Reserves will be paid back with interest when the funding is received. Interfund loans for grants are not charged interest unless the grant contracts specifically states that interest is eligible for reimbursement. There is sufficient cash available to cover proposed borrowings and to pay budgeted expenditures for the General Fund. Attachments:

1. Resolution No. 452 | Amending the Inter-Fund, Inter-Project and Inter-Agency Loan Policy

30

COMMISSION MEMORANDUM NO. 2019.99 DATE: September 17, 2019 TO: SAWPA Commission SUBJECT: Performance Indicators and Financial Reporting – July 2019 PREPARED BY: Karen Williams, DGM/CFO RECOMMENDATION It is recommended that the Commission receive and file staff’s report. DISCUSSION The attached reports have been developed to keep the Commission informed as to SAWPA’s business and budget performance. These reports are categorized into the following groups: financial reporting, cash and investments, and performance indicators. They are explained in detail below. As new reports are developed, they will be added for the Commission’s review. Financial Reporting

Balance Sheet by Fund Type Lists total assets, liabilities, and equity by fund type for a given period.

Revenue & Expense by Fund Type Lists total revenue and expenses by fund type for a given period.

Receivables Management Shows total outstanding accounts receivable by age.

Open Task Order Schedule Shows SAWPA’s total outstanding obligation for open task orders.

List of SAWPA Funds Shows each SAWPA Fund with the fund description and fund group.

Debt Service Funding Analysis Shows total annual income by source used to make debt service payments through debt maturity at FYE 2048.

Debt Service Payment Schedule Shows total debt service interest and principal payments through debt maturity at FYE 2048.

Cash and Investments

Total Cash and Investments (chart) Shows the changes in cash and investments balance for the last twelve months.

Cash Balance & Source of Funds Shows total cash and investments for all SAWPA funds and the types of investments held for each fund.

Cash & Investments (pie chart) Shows total cash and investments for all SAWPA funds and the percentage of each investment type.

Reserve Account Analysis Shows changes to each reserve account for the year and projected ending balance for each.

Twelve Month Security Schedule (chart)

Shows the maturity dates for securities held and percentage of securities in each category.

33

CM#2019.99 September 17, 2019 Page 2

Treasurer’s Report Shows book and market value for both Treasury strips and securities held by the Agency.

Performance Indicators

Average Daily Flow by Month Shows total flow in the Brine Line System by month compared to total treatment capacity owned. This is an indicator of the available capacity in the line. As we add yearly flows, it will show trends in flow throughout the year.

Summary of Labor Multipliers Summarizes the information generated from the following two reports and compares the actual benefit and Indirect Cost Allocation rates to the total budgeted rates.

General Fund Costs Lists total Fund No. 100 costs to date and the amount of those costs recovered through the Indirect Cost Allocation and member contributions.

Benefit Summary Lists total employee benefit costs actual to budget and projects them through the end of the year. This report compares how the actual benefit rate compares to the budgeted rate.

Labor Hours Budget vs. Actual Shows total budgeted hours for each project and compares them to the actual hours charged to each.

RESOURCE IMPACTS Staff expects minimal impacts to SAWPA or its member agencies related to this effort. Attachments: 1. Balance Sheet by Fund Type 10. Reserve Account Analysis 2. Revenue & Expense by Fund Type 11. Twelve-Month Maturity Schedule - Securities 3. Accounts Receivable Aging Report 12. Treasurer’s Report 4. Open Task Order Schedule 13. Average Daily Flow by Month 5. List of SAWPA Funds 14. Summary of Labor Multipliers 6. Debt Service Funding Analysis 15. General Fund Costs 7. Debt Service Payment Schedule 16. Benefits 8. Total Cash and Investments (chart) 17. Labor Hours Budgeted vs. Actual 9. Cash Balance & Source of Funds

34

GeneralFund

Brine LineEnterprise

CapitalProjects

OWOWProjects

RoundtableProjects

FundTotals

Assets

Current AssetsCash and Investments $3,860,197.78 $52,610,453.91 $0.00 $537,741.95 $2,272,669.21 $59,281,062.85Accounts Receivable 1.75 1,934,932.97 0.00 26,198,585.92 29,238.90 28,162,759.54Interest Receivable 23,456.50 225,718.75 0.00 4,397.76 11,843.46 265,416.47Prepaids and Deposits 119,772.74 112,649.25 0.00 0.00 0.00 232,421.99

Total Current Assets 4,003,428.77 54,883,754.88 0.00 26,740,725.63 2,313,751.57 87,941,660.85

Fixed AssetsProperty, Plant & Equipment

less accum depreciation 1,142,357.79 84,402,859.60 0.00 0.00 0.00 85,545,217.39Work In Process 0.00 0.00 379,169.32 0.00 0.00 379,169.32

Total fixed assets 1,142,357.79 84,402,859.60 379,169.32 0.00 0.00 85,924,386.71

Other AssetsWastewater treatment/disposal

rights, net of amortization 6,076.24 26,132,998.34 0.00 0.00 0.00 26,139,074.58Inventory - Mitigation Credits 0.00 0.00 0.00 0.00 1,910,560.00 1,910,560.00

Total Other Assets 6,076.24 26,132,998.34 0.00 0.00 1,910,560.00 28,049,634.58

Total Assets $5,151,862.80 $165,419,612.82 $379,169.32 $26,740,725.63 $4,224,311.57 $201,915,682.14Liabilities and Fund EquityCurrent Liabilities

Accounts Payable/Accrued Expenses $826,325.14 $1,772,564.76 $82,803.01 $25,750,698.74 $151,744.88 $28,584,136.53Accrued Interest Payable 0.00 287,504.12 0.00 0.00 109.00 287,613.12Customer Deposits 0.00 8,825.59 0.00 0.00 458,596.40 467,421.99

Noncurrent LiabilitiesLong-term Debt 4,195,263.00 29,847,479.91 0.00 0.00 0.00 34,042,742.91Deferred Revenue 0.00 67,698,979.50 0.00 0.00 0.00 67,698,979.50Total Liabilities 5,021,588.14 99,615,353.88 82,803.01 25,750,698.74 610,450.28 131,080,894.05

Fund EquityContributed Capital 0.00 20,920,507.03 0.00 0.00 0.00 20,920,507.03Retained Earnings 1,506,880.05 41,330,123.79 360,590.67 985,966.44 3,576,972.00 47,760,532.95Revenue Over/Under Expenditures (1,376,605.39) 3,553,628.12 (64,224.36) 4,060.45 36,889.29 2,153,748.11

Total Fund Equity 130,274.66 65,804,258.94 296,366.31 990,026.89 3,613,861.29 70,834,788.09

Total Liabilities & Fund Equity $5,151,862.80 $165,419,612.82 $379,169.32 $26,740,725.63 $4,224,311.57 $201,915,682.14

Santa Ana Watershed Project AuthorityBalance Sheet by Fund Type

For the Twelve Months Ending Sunday, June 30, 2019

35

GeneralFund

Brine LineEnterprise

CapitalProjects

OWOWProjects

RoundtableProjects

FundTotals

Operating RevenueDischarge Fees $0.00 $11,123,310.47 $0.00 $0.00 $0.00 $11,123,310.47Grant Proceeds 0.00 0.00 0.00 27,601,467.55 0.00 27,601,467.55Financing Proceeds 0.00 0.00 0.00 0.00 193,587.58 193,587.58

Total Operating Revenue 0.00 11,123,310.47 0.00 27,601,467.55 193,587.58 38,918,365.60

Operating ExpensesLabor 1,635,475.55 1,005,422.65 16,873.07 569,357.78 150,825.08 3,377,954.13Benefits 526,281.16 439,369.74 7,373.52 248,809.33 65,910.58 1,287,744.33Indirect Costs 0.00 1,418,651.36 23,807.89 803,363.81 212,814.19 2,458,637.25Education & Training 13,792.77 185.00 0.00 0.00 0.00 13,977.77Consulting & Professional Services 307,419.93 153,351.78 498,385.07 1,626,447.63 643,509.77 3,229,114.18Operating Costs 1,616.18 2,979,635.07 0.00 0.00 218.55 2,981,469.80Repair & Maintenance 72,828.70 306,497.31 0.00 0.00 0.00 379,326.01Phone & Utilities 54,220.12 8,034.52 0.00 0.00 0.00 62,254.64Equipment & Computers 211,175.94 44,993.21 0.00 104.99 0.00 256,274.14Meeting & Travel 17,476.02 1,486.10 7.05 21,617.14 1,028.82 41,615.13Other Administrative Costs 128,977.02 49,121.75 0.00 22,124.65 10,652.03 210,875.45Benefits Applied 203,254.98 0.00 0.00 0.00 0.00 203,254.98Indirect Costs Applied (2,477,567.53) 0.00 0.00 0.00 0.00 (2,477,567.53)Other Expenses 50,214.04 138,907.17 0.00 0.00 10,647.06 199,768.27Construction 0.00 0.00 0.00 25,471,745.52 0.00 25,471,745.52

Total Operating Expenses 745,164.88 6,545,655.66 546,446.60 28,763,570.85 1,095,606.08 37,696,444.07

Operating Income (Loss) (745,164.88) 4,577,654.81 (546,446.60) (1,162,103.30) (902,018.50) 1,221,921.53

Nonoperating Income (Expense)Member Contributions 604,695.00 0.00 0.00 801,000.00 66,000.00 1,471,695.00Other Agency Contributions 0.00 0.00 0.00 337,816.28 830,596.00 1,168,412.28Pipeline & Treatment Capacity Sales 0.00 2,510,154.00 0.00 0.00 0.00 2,510,154.00Interest Income 83,862.96 1,517,009.85 0.00 17,339.37 41,519.89 1,659,732.07Interest Expense - Debt Service 0.00 (713,447.98) 0.00 0.00 0.00 (713,447.98)Other Income 1,749.20 1,211,035.54 0.00 10,800.00 0.00 1,223,584.74Use of Reserves (95,533.52) 0.00 0.00 0.00 0.00 (95,533.52)Operating Transfers 0.00 (482,222.24) 482,222.24 (791.90) 791.90 0.00

Total Nonoperating Income (Expense) 594,773.64 4,042,529.17 482,222.24 1,166,163.75 938,907.79 7,224,596.59

Excess Rev over (under) Exp ($150,391.24) $8,620,183.98 ($64,224.36) $4,060.45 $36,889.29 $8,446,518.12

Santa Ana Watershed Project AuthorityRevenue & Expenses by Fund Type

For the Twelve Months Ending Sunday, June 30, 2019

36

Aging ReportSanta Ana Watershed Project Authority

Receivables as of July 31, 2019

Customer Name Project Total 0-30 Days 31-60 Days 61 and Over

Beaumont Cherry Valley Water District Basin Monitoring 16,796.00 16,796.00 Beaumont, City of Basin Monitoring 16,796.00 16,796.00 Chino Basin Desalter Authority Brine Line 154,770.29 154,770.29 Department of Water Resources Prop 84, WECAN 16,161,736.38 43,459.17 14,252,332.64 1,865,944.57 Eastern Municipal Water District Brine Line 180,952.66 180,952.66 Hazardous Waste Transportation Brine Line 250.00 250.00 Inland Empire Utilities Agency Brine Line, Emerging Constituents 105,598.89 105,598.89 Lake Elsinore & San Jacinto Watersheds Authority LESJWA Administration 20,135.43 20,135.43 Malcolm Internation Basin Monitoring 14,019.00 14,019.00 Orange County Flood Control District RWQ Monitoring 43,204.00 43,204.00 Orange County Water District Basin Monitoring 18,046.00 18,046.00 Patriot Environmental Services Brine Line 250.00 250.00 Riverside County Flood Control RWQ Monitoring 118,703.00 118,703.00 San Bernardino County Flood Control District RWQ Monitoring, MSAR TMDL 333,785.00 333,785.00 San Bernardino Valley Municipal Water District Brine Line 106,572.96 104,772.96 1,800.00 Western Municipal Water District Brine Line 413,637.75 413,637.75

Total Accounts Receivable 17,705,253.36 1,023,327.15 14,815,981.64 1,865,944.57

37

Task Order No. Fund No. Vendor Name Task Description Begin Date End Date Original Change Total Billed Contract SAWPA CommentsProject Contracts Contract Orders Contract To Date Balance ManagerACS100-11 100-00 Accent Computer Solutions IT Support 08/08/2018 06/30/2020 186,800.00$ -$ 186,800.00$ 78,921.57$ 107,878.43$ Dean Unger

BART100-04 100-00 Bartel & Associates 2019 GASB 68 Actuarials Info 05/16/2019 12/31/2019 1,300.00$ -$ 1,300.00$ -$ 1,300.00$ Karen Williams

HAMM100-240-01 100/240 Hammons Strategies Technicial Writing - SAWPA/BL 07/01/2018 12/31/2019 10,000.00$ 10,000.00$ 20,000.00$ 13,255.00$ 6,745.00$ Rich Haller

INSOL100-14 100-00 Integrated Systems Solutions Great Plains & Journyx Tech Support 07/01/2019 06/30/2020 4,200.00$ 4,200.00$ 650.00$ 3,550.00$ Dean Unger

INSOL100-13 100-00 Integrated Systems Solutions Journyx Timekeeping software Install 05/21/2019 07/31/2019 11,340.00$ -$ 11,340.00$ 8,248.50$ 3,091.50$ Dean Unger

MANT100-01 100-00 Mantek Solutions, Inc. Onbase Scanning and Indexing 05/30/2019 12/31/2019 7,000.00$ 4,500.00$ 11,500.00$ 11,500.00$ -$ Dean Unger

TEAM100-07 100-00 Teaman, Ramirez, & Smith Auditing Services 06/05/2018 06/30/2021 79,500.00$ -$ 79,500.00$ 34,069.00$ 45,431.00$ Karen Williams

TTD100-05 100-00 The Technology Depot Phone Support 07/01/2019 06/30/2020 5,000.00$ -$ 5,000.00$ 67.50$ 4,932.50$ Dean Unger

TPBI100-01 100-00 Total Plan Business Interiors SAWPA Building Improvments - Design 12/31/2019 5,000.00$ 5,000.00$ 10,000.00$ 8,775.00$ 1,225.00$ Carlos Quintero

WCA100-03-03 100-03 West Coast Advisors State Legislative Consulting FY19-20 01/01/2019 12/31/2020 235,000.00$ -$ 235,000.00$ 78,000.00$ 157,000.00$ Larry McKenney

CALV240-03 240 Calvada Surveying BL On Call Land Surveying Services 06/05/2018 06/30/2020 28,970.00$ -$ 28,970.00$ -$ 28,970.00$ Carlos Quintero On Call

DOUG240-03 240 Douglas Environmental Brine Line Meter Calibration 07/01/2018 06/30/2020 25,620.00$ 25,620.00$ 16,046.06$ 9,573.94$ Carlos Quintero On Call

WO2020-02 240 E S Babcock Brine Line Sample Collection & Analysis 07/01/2019 06/30/2020 91,949.00$ -$ 91,949.00$ 2,409.00$ 89,540.00$ Carols Quintero

HAZ240-09 240 Haz Mat Trans Inc On Call Draining & Emergency Clean Up 07/01/2018 06/30/2020 96,665.00$ -$ 96,665.00$ 833.75$ 95,831.25$ Carlos Quintero On Call

HAZ240-10 240 Haz Mat Trans Inc BL Debris Hauling & Disposal services 07/01/2018 06/30/2020 34,800.00$ 34,800.00$ 4,720.00$ 30,080.00$ Carlos Quintero On Call

HOU240-04 240 Houston Harris PCS Inc Brine Line On Call Inspection Services 07/01/2018 06/30/2020 96,448.00$ -$ 96,448.00$ 2,131.50$ 94,316.50$ Carlos Quintero On Call

WO2019-03 240 Inland Empire Utilities Agency Reach 4A Upper - BL Maintenance 07/01/2018 06/30/2019 10,000.00$ -$ 10,000.00$ -$ 10,000.00$ Carlos Quintero

INN240-03 240 Innerline Engineering Inc Brine Line On-Call Line Cleaning 07/01/2018 06/30/2020 151,020.00$ 151,020.00$ 46,897.50$ 104,122.50$ Carlos Quintero On Call

TRU240-22 240 Trussell Technologies Monthly County Line Solids Analysis 10/16/2018 06/30/2019 9,664.00$ -$ 9,664.00$ 8,224.89$ 1,439.11$ Carlos Quintero

TRU240-23 240 Trussell Technologies 2019 BL Annual Review 10/15/2018 10/31/2019 49,899.00$ -$ 49,899.00$ 49,899.90$ (0.90)$ Carlos Quintero

WEKA240-02 240 WEKA IEBL Replacement Value Assessment 05/27/2019 10/31/2019 50,000.00$ -$ 50,000.00$ 12,525.00$ 37,475.00$ David Ruhl

WO2019-01 240 WMWD Sample Collection & Analysis 07/01/2018 06/30/2019 80,000.00$ 14,000.00$ 94,000.00$ 84,496.50 9,503.50$ David Ruhl

WO2019-02 240 WMWD Brine Line Operations & Maintenance 07/01/2018 06/30/2019 25,000.00$ -$ 25,000.00$ 12,026.62 12,973.38$ Carlos Quintero

DUDK320-03-01 320 Dudek Reach 4D Maintenance Acc Rehabilitation 05/30/2019 06/30/2020 38,530.00$ -$ 38,530.00$ 0.00 38,530.00$ David Ruhl

Santa Ana Watershed Project Authority

Jul-19Open Task Orders Schedule

(Reflects Invoices Received as of 8/14/19)

38

Task Order No. Fund No. Vendor Name Task Description Begin Date End Date Original Change Total Billed Contract SAWPA CommentsProject Contracts Contract Orders Contract To Date Balance Manager




W&C327-02 327 Woodard & Curran IEBL Reach IV-D Near Term Inspection Work 04/03/2019 12/31/2019 50,000.00$ -$ 50,000.00$ 37,734.17$ 12,265.83$ David Ruhl

BLAIS370-02 370-01 Blais & Associates Grant Needs Assessment & Grant Monitoring 10/01/2018 12/31/2019 24,700.00$ -$ 24,700.00$ 8,818.47$ 15,881.53$ Ian Achimore

BLAIS370-03 370-01 Blais & Associates Water Mgmt Options Pilot Program Application 06/17/2019 07/31/2019 5,675.00$ -$ 5,675.00$ 2,575.00$ 3,100.00$ Ian Achimore

DUDK373-06 373 Dudek Prop1 Round 1 Grant App 03/07/2019 12/31/2019 91,310.00$ -$ 91,310.00$ 32,254.89$ 59,055.11$ Ian Achimore

SWWG373-01 373 Sierra Water Workgroup Roundtable of Regions network coordinator 04/01/2019 06/30/2020 84,454.00$ -$ 84,454.00$ 12,000.00$ 72,454.00$ Ian Achimore

GEOS374-01 374 GeoScience Support Service SAR WLA Model Update 02/01/2017 10/31/2019 249,800.00$ 94,436.00$ 344,236.00$ 343,905.00$ 331.00$ Mark Norton

RISK374-08 374 Risk Sciences Basin Monitory TF Regulatory Support 03/21/2019 06/30/2020 74,400.00$ -$ 74,400.00$ 12,549.62$ 61,850.38$ Mark Norton

WSC374-01 374 Water Systems Consulting Recomputation of Ambient Water Quality 04/02/2019 06/30/2020 373,973.00$ -$ 373,973.00$ 56,094.76$ 317,878.24$ Mark Norton

SAWA381-01 381 Santa Ana Watershed Association Van Buren Bridge Suker Restoration 09/26/2018 12/31/2019 15,130.20$ -$ 15,130.20$ 5,961.40$ 9,168.80$ Ian Achimore

SCH381-01 381 Scheevel Engineering S.A. Sucker - Beneficial Use Project 04/18/2017 06/30/2020 96,725.00$ 7,275.00$ 104,000.00$ 99,529.00$ 4,471.00$ Ian Achimore

SCH381-02 381 Scheevel Engineering S.A. Sucker - Habitat Construction Management 09/17/2018 12/31/2019 12,300.00$ -$ 12,300.00$ 5,025.00$ 7,275.00$ Ian Achimore

GEI384-01 384-01 GEI Consultants MSAR TMDL Synoptic Study 05/21/2019 06/30/2020 200,000.00$ -$ 200,000.00$ -$ 200,000.00$ Rick Whetsel

RISK384-09 384-01 Risk Sciences MSAR TMDL Task Force 07/01/2018 06/30/2020 49,340.00$ -$ 49,340.00$ 29,169.00$ 20,171.00$ Rick Whetsel

CDM386-13 386 CDM Smith Regional Bacteria Monitoring Program 07/01/2018 06/30/2019 324,914.00$ 28,834.00$ 353,748.00$ 284,955.72$ 68,792.28$ Rick Whetsel

CDM386-14 386 CDM Smith SAR Bactgeria Monitoring Program 02/27/2019 06/30/2020 362,865.00$ 6,100.00$ 368,965.00$ 64,147.02$ 304,817.98$ Rick Whetsel

RISK386-10 386 Risk Sciences Compliance Expert - RWQM TF 07/01/2018 06/30/2020 46,820.00$ -$ 46,820.00$ 11,509.32$ 35,310.68$ Rick Whetsel

SAWA387-06 387 Santa Ana Watershed Association Arundo Surveying 07/17/2018 08/31/2019 23,000.00$ -$ 23,000.00$ -$ 23,000.00$ Ian Achimore

DEGR392-05 392 DeGrave Communications Social Media Support - EC TF 07/01/2019 06/30/2020 30,000.00$ -$ 30,000.00$ 3,230.22$ 26,769.78$ Mark Norton

RISK392-05 392 Risk Sciences Emerging Constituents Sampling Progam 2019 02/20/2019 06/30/2020 28,250.00$ -$ 28,250.00$ 8,994.04$ 19,255.96$ Mark Norton

ECOT397-02 397 Ecotech Services WECAN Landscaping Services 04/04/2017 09/30/2019 612,000.00$ -$ 612,000.00$ 607,625.00$ 4,375.00$ Ian Achimore

PO3466 398 California Rural Water Association Disadvantaged Communities Grant 07/19/2017 04/30/2020 240,000.00$ -$ 240,000.00$ 145,317.48$ 94,682.52$ Rick Whetsel

IEW398-03 398 Inland Empire Waterkeeper Disadvanged Communities Grant 09/03/2018 04/30/2021 7,200.00$ -$ 7,200.00$ 6,615.92$ 584.08$ Rick Whetsel

IUG398-01 398 IU Group On Call Translation Services 04/18/2019 04/30/2020 10,000.00$ -$ 10,000.00$ 1,968.09$ 8,031.91$ Rick Whetsel

LTI398-01 398 Lazar Translation & Interpreting On Call Translation Services 04/16/2019 04/30/2020 10,000.00$ -$ 10,000.00$ 2,889.20$ 7,110.80$ Rick Whetsel 39

Task Order No. Fund No. Vendor Name Task Description Begin Date End Date Original Change Total Billed Contract SAWPA CommentsProject Contracts Contract Orders Contract To Date Balance Manager




PO3463 398 Local Government Commission Disadvantaged Communities Grant 07/19/2017 04/30/2020 442,000.00$ -$ 442,000.00$ 296,988.90$ 145,011.10$ Rick Whetsel

PO3551 398 UC Irvine Disadvantaged Communities Grant 11/06/2017 04/30/2020 105,000.00$ 277,000.00$ 382,000.00$ 265,819.39$ 116,180.61$ Rick Whetsel

PO3465 398 University Enterprises Corporation Disadvantaged Communities Grant 07/19/2017 04/30/2020 1,290,500.00$ -$ 1,290,500.00$ 121,217.19$ 1,169,282.81$ Rick Whetsel

PO3464 398 Water Education Foundation Disadvantaged Communities Grant 07/19/2017 04/30/2020 150,000.00$ -$ 150,000.00$ 71,552.31$ 78,447.69$ Rick Whetsel

MSS504-301-01 504-00 Miller Spatial Services Geocoding & Business Type Classification 08/24/2017 09/30/2019 300,000.00$ -$ 300,000.00$ 236,375.98$ 63,624.02$ Rick Whetsel

RMC504-401-06 504-04 Woodard & Curran SARCCUP Program Mgmt Services 07/01/2019 06/30/2020 229,046.00$ -$ 229,046.00$ -$ 229,046.00$ Ian Achimore

RMC504-401-05 504-04 Woodard & Curran Technical Writing & Outreach Support 10/24/2018 06/30/2020 37,411.00$ -$ 37,411.00$ 17,616.50$ 19,794.50$ Mark Norton

4,091,527.32$

40

LIST OF SAWPA FUNDS

Fund No.

Fund Description Fund Group

100-00 General Fund General

100-03 State Lobbying General

100-04 Federal Lobbying General

100-05 Grant Applications General

130 Proposition 84 – Program Management - Round 1 OWOW

135 Proposition 84 – Program Management – Round 2 OWOW

140 Proposition 84 – Program Management – Drought Round OWOW

145 Proposition 84 – Program Management – 2015 Round OWOW

240 Brine Line Enterprise Brine Line

320-01 Brine Line Protection – Downstream Prado Capital Projects

320-03 Brine Line Protection Above Prado Capital Projects

320-04 Brine Line Protection D/S Prado in Riverside County Capital Projects

326 Reach V Capital Repairs Capital Projects

327 Reach IV-D Corrosion Repair Capital Projects

370-01 Basin Planning General OWOW

370-02 USBR Partnership Studies OWOW

372 Imported Water Recharge Work Group Roundtable

373 Watershed Management (OWOW) OWOW

374 Basin Monitoring Program Task Force Roundtable

381 Santa Ana River Fish Conservation Roundtable

384-01 MSAR TMDL Task Force Roundtable

386 Regional Water Quality Monitoring Task Force Roundtable

387 Arundo Management & Habitat Restoration Roundtable

392 Emerging Constituents Task Force Roundtable

396 Forest First Roundtable

397 Energy – Water DAC Grant Project OWOW

398 Proposition 1 - DACI OWOW

477 LESJWA Administration Roundtable

504-01 Proposition 84 – Capital Projects Round 1 & 2 OWOW

504-00 Proposition 84 – Drought Capital Projects OWOW

504-04 Proposition 84 – Final Round SARCCUP OWOW

41

Santa Ana Watershed Project AuthorityBrine Line Debt Service Funding Analysis

July 31, 2019

FYE T-Strip Capacity Ending CashMaturity Loan Receipts Rates Loan Pymts Interest Earned * Excess Cash Balance

Beginning Balance 4,808,151 2020 395,000 - 1,709,476 (2,835,753) 96,163 (635,115) 4,173,037 2021 - - 1,709,476 (2,835,753) 83,461 (1,042,817) 3,130,220 2022 - - 1,709,476 (2,608,439) 62,604 (836,359) 2,293,861 2023 - - 1,709,476 (1,709,476) 45,877 45,877 2,339,738 2024 - - 1,709,476 (1,709,476) 46,795 46,795 2,386,533 2025 - - 1,709,476 (1,709,476) 47,731 47,731 2,434,264 2026 - - 1,709,476 (1,709,476) 48,685 48,685 2,482,949 2027 - - 1,709,476 (1,709,476) 49,659 49,659 2,532,608 2028 - - 1,709,476 (1,709,476) 50,652 50,652 2,583,260 2029 - - 1,709,476 (1,709,476) 51,665 51,665 2,634,925 2030 - - 1,709,476 (1,709,476) 52,699 52,699 2,687,624 2031 - - 1,709,476 (1,709,476) 53,752 53,752 2,741,376 2032 - - 1,709,476 (1,709,476) 54,828 54,828 2,796,204 2033 - - 1,709,476 (1,709,476) 55,924 55,924 2,852,128 2034 - - 665,203 (665,203) 57,043 57,043 2,909,171 2035 - - 665,203 (665,203) 58,183 58,183 2,967,355 2036 - - 665,203 (665,203) 59,347 59,347 3,026,701 2037 - - 665,203 (665,203) 60,534 60,534 3,087,236 2038 - - 665,203 (665,203) 61,745 61,745 3,148,980 2039 - - 665,203 (665,203) 62,980 62,980 3,211,959 2040 - - 665,203 (665,203) 64,239 64,239 3,276,199 2041 - - 665,203 (665,203) 65,524 65,524 3,341,723 2042 - - 665,203 (665,203) 66,834 66,834 3,408,557 2043 - - 665,203 (665,203) 68,171 68,171 3,476,728 2044 - - 665,203 (665,203) 69,535 69,535 3,546,263 2045 - - 665,203 (665,203) 70,925 70,925 3,617,188 2046 - - 665,203 (665,203) 72,344 72,344 3,689,532 2047 - - 665,203 (665,203) 73,791 73,791 3,763,322 2048 - - 665,203 (665,203) 75,266 75,266 3,838,589

395,000 - 33,910,698 (37,062,216) 1,786,956 (969,562) -

*Interest earned is based on a conservative 2.00% average return over the period

42

Santa Ana Watershed Project AuthorityBrine Line Debt Service Payment Schedule

July 31, 2019

New RemainingFYE Interest Principal Total Payment SRF Loan Principal2019 654,805 1,953,766 2,608,571 - 29,412,143 2020 662,589 1,945,982 2,608,571 - 27,466,161 2021 614,379 1,994,192 2,608,571 - 25,471,969 2022 564,959 2,043,480 2,608,439 - 23,428,489 2023 514,301 1,195,175 1,709,476 - 22,233,314 2024 486,080 1,223,395 1,709,476 - 21,009,919 2025 457,181 1,252,295 1,709,476 - 19,757,624 2026 427,585 1,281,891 1,709,476 - 18,475,733 2027 397,276 1,312,199 1,709,476 - 17,163,534 2028 366,237 1,343,239 1,709,476 - 15,820,295 2029 334,449 1,375,027 1,709,476 - 14,445,268 2030 301,894 1,407,582 1,709,476 - 13,037,686 2031 268,553 1,440,923 1,709,476 - 11,596,763 2032 234,407 1,475,068 1,709,476 - 10,121,694 2033 199,437 1,510,039 1,709,476 - 8,611,656 2034 163,621 501,581 665,203 - 8,110,075 2035 154,091 511,111 665,203 - 7,598,963 2036 144,380 520,822 665,203 - 7,078,141 2037 134,485 530,718 665,203 - 6,547,423 2038 124,401 540,801 665,203 - 6,006,622 2039 114,126 551,077 665,203 - 5,455,545 2040 103,655 561,547 665,203 - 4,893,998 2041 92,986 572,217 665,203 - 4,321,782 2042 82,114 583,089 665,203 - 3,738,693 2043 71,035 594,167 665,203 - 3,144,526 2044 59,746 605,457 665,203 - 2,539,069 2045 48,242 616,960 665,203 - 1,922,109 2046 36,520 628,682 665,203 - 1,293,426 2047 24,575 640,627 665,203 - 652,799 2048 12,403 652,799 665,203 - (0)

$0

$1

$2

$3

$4

$5

$6

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

Millions

Debt Service Payment ScheduleFiscal Years 2020‐2048

PrincipalInterest

43

$53

$54 $53$54

$58 $56 $57

$58 $57

$57

$58$59

$60

$31

$36

$41

$46

$51

$56

$61

$66

$71

Jul'18 Aug'18 Sep'18 Oct'18 Nov'18 Dec'18 Jan'19 Feb'19Mar'19 Apr'19May'19 Jun'19 Jul'19

Millions

Total Cash & Investments

44

Checking LAIF Savings Investment Certificates Treasury(Cash) Account EPA Securities of Deposit Strips

100 General Fund 2,800,510$ 2,800,510 - - - - - 2,800,510$ 100 Building Reserve 788,885$ - 788,885 - - - - 788,885$ 370 Basin Planning General 426,873$ - 426,873 - - - - 426,873$ 370 USBR Partnership Studies 58,497$ - 58,497 - - - - 58,497$ 373 Watershed Management Plan 593,300$ - 593,300 - - - - 593,300$ 240 Self Insurance Reserve 4,199,767$ - 4,199,767 - - - - 4,199,767$ 240 Brine Line Debt Retirement 4,968,292$ - 4,579,842 - - - 388,450 4,968,292$ 240 Brine Line - Pipeline Replacement 21,178,046$ - 8,697,834 - 10,994,097 1,486,115 - 21,178,046$ 240 Brine Line - OCSD Rehabilitation 3,650,852$ - 3,650,852 - - - - 3,650,852$ 240 Brine Line - Capacity Management 11,691,357$ - 11,691,357 - - - - 11,691,357$ 240 Brine Line - OCSD Future Capacity 1,789,985$ - 1,789,985 - - - - 1,789,985$ 240 Brine Line - Flow Imbalance Reserve 86,513$ - 86,513 - - - - 86,513$ 240 Brine Line - Rate Stabilization Reserve 1,003,055$ - 1,003,055 - - - - 1,003,055$ 240 Brine Line - Operating Reserve 3,938,968$ 258,234 3,680,734 - - - - 3,938,968$ 401 Legal Defense Fund 458,596$ - - 458,596 - - - 458,596$ 374 Basin Monitoring Program TF 488,525$ - 488,525 - - - - 488,525$ 381 SAR Fish Conservation 122,846$ - 122,846 - - - - 122,846$ 384 Middle SAR TMDL TF 58,710$ - 58,710 - - - - 58,710$ 386 RWQ Monitoring TF 352,036$ - 352,036 - - - - 352,036$ 387 Mitigation Bank Credits 956,762$ - 956,762 - - - - 956,762$ 392 Emerging Constituents TF 71,534$ - 71,534 - - - - 71,534$ 397 Energy - Water DAC Grant 236,369$ - 236,369 - - - - 236,369$ 504 Prop 84 - SARCCUP Projects 518,188$ - 518,188 - - - 518,188$

60,438,467$ 3,058,744$ 44,052,464$ 458,596$ 10,994,097$ 1,486,115$ 388,450$ 60,438,467$

CASH BALANCE & SOURCE OF FUNDSJuly 31, 2019

Reserve Accounts Cash and Investments

Total Total

45

T‐Strips, $388,450, 1%

Savings ‐ EPA, $458,596, 1%

LAIF, $44,052,464, 73%

Securities, $10,994,097, 18% CD's, $1,486,115, 2%

Checking Accounts, $3,058,744, 5%

Cash & Investments ‐ July 2019$60,438,467

46

Santa Ana Watershed Project AuthorityReserve Account Analysis

July 31, 2019

Estimated Balance @ Interest Fund Loan/T-Strip Debt Service Inter-Fund Fund Balance @ Fund Balance @

Reserve Account 6/30/2019 Earned Contributions Receipts Payments Loans Expenses 7/31/2019 Changes 6/30/2020

Brine Line Operating Reserve 4,512,993 23,638 992,902 (1,590,566) 3,938,968 - 3,938,968 Flow Imbalance Reserve 85,989 525 86,513 - 86,513 OCSD Future Capacity 1,779,127 10,858 1,789,985 - 1,789,985 Capacity Management 11,620,440 70,917 11,691,357 - 11,691,357 Rate Stabilization Reserve 1,000,000 3,055 1,003,055 - 1,003,055 Pipeline Replacement 21,015,512 44,938 119,623 (2,026) 21,178,046 (3,800,253) 17,377,793 OCSD Rehabilitation 3,628,707 22,145 3,650,852 - 3,650,852 Debt Retirement 4,413,151 24,295 142,396 4,579,842 1,542,059 6,121,901 Self Insurance 4,166,085 25,349 8,333 4,199,767 91,667 4,291,434 General Fund 2,418,254 18,681 541,684 (546,769) 368,659 2,800,510 - 2,800,510 Building Reserve 684,110 4,775 100,000 788,885 - 788,885

55,324,368 249,175 1,904,939 - - (548,795) (1,221,907) 55,707,781 (2,166,527) 53,541,254

47

$0$500,000

$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000$4,500,000$5,000,000$5,500,000$6,000,000$6,500,000$7,000,000$7,500,000

< 1 YR 1 to 2 YRS 2 to 3 YRS 3 to 4 YRS 4 to 5 YRS

Twelve Month Maturity ScheduleSecurities

48%

24%

6%

18%

4%

48

SAWPATREASURER'S REPORT

As of July 31, 2019

Investment T-Strips Safekeeping US Bank

Purchase Maturity Initial Current Book Market Interest

T-STRIPS Debt Date Date PAR Cost Discount Discount Value Value RateUSB TVRI 02/11/2000 05/15/2020 395,000.00 111,030.55 283,969.45 40,451.91 354,548.09 388,450.11 6.36%

395,000.00$ 111,030.55$ 283,969.45$ 40,451.91$ 354,548.09 388,450.11$ 6.36%

Investment Commercial Safekeeping US Bank

Purchase Maturity Unit Current Market Interest

Type Security Date Date Cost Cost Principal Value Value RateAgency FHLMC 9/16/2016 8/12/2021 100.00 990,060.00$ 1,000,000.00$ 1,000,000.00$ 984,727.00 1.125%Agency FHLMC 4/17/2017 1/13/2022 102.55 512,767.00$ 500,000.00$ 500,000.00$ 505,855.50 2.375%Agency FHLB 6/16/2016 6/12/2020 102.61 1,026,088.00$ 1,000,000.00$ 1,000,000.00$ 997,634.00 1.750%Agency FHLB 12/14/2017 6/10/2022 99.89 998,930.00$ 1,000,000.00$ 1,000,000.00$ 1,006,346.00 2.125%Agency FNMA 12/28/2015 12/28/2020 100.21 1,002,140.00$ 1,000,000.00$ 1,000,000.00$ 998,843.00 1.875%Agency FNMA 6/16/2016 11/30/2020 101.52 1,015,157.00$ 1,000,000.00$ 1,000,000.00$ 993,955.00 1.500%Agengy USTN 11/17/2015 10/31/2020 100.00 1,005,312.50$ 1,000,000.00$ 1,000,000.00$ 996,641.00 1.750%Agengy USTN 11/17/2015 11/30/2019 100.00 1,001,210.94$ 1,000,000.00$ 1,000,000.00$ 997,773.00 1.500%Agengy USTN 6/17/2016 8/31/2020 101.13 507,070.31$ 500,000.00$ 500,000.00$ 496,406.00 1.375%Agengy USTN 6/16/2016 9/30/2020 101.12 506,992.19$ 500,000.00$ 500,000.00$ 496,230.50 1.375%Agengy USTN 6/16/2016 10/31/2020 101.12 506,914.06$ 500,000.00$ 500,000.00$ 496,054.50 1.375%Agency USTN 12/14/2017 7/31/2021 96.91 969,062.50$ 1,000,000.00$ 1,000,000.00$ 984,688.00 1.125%CORP Apple Inc. 10/15/2018 5/3/2023 95.98 479,898.50$ 500,000.00$ 500,000.00$ 503,476.00 2.400%CORP Toyota Motor Credit Corp. 10/15/2018 9/20/2023 99.55 497,747.50$ 500,000.00$ 500,000.00$ 521,662.50 3.450%CD Ally Bank 4/20/2017 4/20/2020 100.00 248,000.00$ 248,000.00$ 248,000.00$ 247,941.70 1.800%CD American Exp Centurion 4/19/2017 4/19/2021 100.00 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00 2.250%CD American Express BK FSB 5/10/2017 5/10/2021 100.00 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00 2.200%CD Sallie Mae BK SLT 7/1/2019 6/27/2022 100.00 247,000.00$ 247,000.00$ 247,000.00$ 247,000.00 2.250%CD Morgan Stanley Bank NA 7/5/2019 7/5/2022 100.00 247,000.00$ 247,000.00$ 247,000.00$ 247,000.00 2.200%CD Goldman Sachs Bank USA 12/20/2017 12/20/2022 100.00 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00 2.500%

12,505,350.50$ 12,486,000.00$ 12,486,000.00$ 12,466,233.70 1.915%

49

0

2

4

6

8

10

12

14

16

18

20

Average Daily Flow by Month

Actual

Owned

50

SUMMARY OFLABOR MULTIPLIERS

Benefit Rate

Total Employee Benefits 98,186 0.340Total Payroll 289,019

Gross Indirect Costs 368,161Less: Member Contributions & Other Revenue (37,500)Indirect Costs for Distribution 330,661

Indirect Rate

Direct Labor 113,668 2.909Indirect Costs 330,661

FY 2019-20 Labor multiplier - thru 07/31/19 3.249

FY 2019-20 Budgeted Labor multiplier 1.961

FY 2018-19 Labor multiplier 2.039




51

Actual thru Actual thruG/L Acct. Description 7/31/19 G/L Acct. Description 7/31/19

51000 Salaries - Regular 175,351$ 60172 Equipment Repair / Maintenance -$ 52000 Benefits 79,960$ 60180 Computer Hardware 386$ 60111 Tuition Reimbursement -$ 60181 Software / Updates / Licensing 33,202$ 60112 Training -$ 60182 Internet Services 1,018$ 60113 Education -$ 60183 Computer Supplies 241$ 60114 Other Training & Education 144$ 60184 Computer Repair / Maintenance -$ 60120 Audit Fees 7,500$ 60190 Offsite Meeting / Travel Expense 48$ 60121 Consulting 12,419$ 60191 In House Meetings -$ 60126 Temporary Services 4,484$ 60192 Conference Expense 1,008$ 60128 Other Professional Services -$ 60193 Car, Repair, Maint -$ 60129 Other Contract Services -$ 60200 Dues 200$ 60130 Legal Fees -$ 60202 Subscriptions -$ 60133 Employment Recruitment 556$ 60203 Contributions 10,000$ 60153 Materials & Supplies -$ 60210 Bank Charges -$ 60154 Safety 1,302$ 60211 Shipping / Postage 159$ 60155 Security -$ 60212 Office Supplies 665$ 60156 Custodial Contract Services 1,584$ 60213 Offsite Storage 163$ 60157 Landscaping Maintenance 625$ 60220 Commission Fees 2,520$ 60158 HVAC 3,001$ 60221 Commission Mileage Reimb. 390$ 60159 Facility Repair & Maintenance 3,168$ 60222 Other Commission Expense -$ 60160 Telephone 1,174$ 60230 Other Expense 1,581$ 60161 Cellular / Paging Services 949$ 60240 Building Lease 765$ 60163 Electricity 1,785$ 81010 Retiree Medical Expense 5,732$ 60164 Water Services 572$ 80001 Insurance Expense 3,744$ 60170 Equipment Expensed 224$ 80000 Building Repair/Replacement Reserve 8,333$ 60171 Equipment Rented 3,209$ 13005 Fixed Assets -$

Total Costs 368,161$

Direct Costs Paid by Projects 226,573$ Member Contribution Offset 37,500$ 264,073$

Over allocation % -31.5%Over (Under) Allocation of General Fund Costs (104,088)$

(Continued - next column)

INDIRECT COSTS( to be Distributed)

52

Actual @ ProjectedG/L Acct Description Budget 7/31/19 FYE 2020

70101 FICA Expense 200,498 9,412$ 198,000$ 70102 Medicare Expense 56,208 2,354$ 54,000$ 70103 State Unemployment Insurance 4,900 -$ 4,900$ 70104 Worker's Compensation Insurance 43,068 -$ 40,000$ 70105 State Disability Insurance 29,183 1,308$ 25,000$ 70106 PERS Pension Plan 701,014 39,615$ 695,000$ 70111 Medical Expense 578,078 35,657$ 427,884$ 70112 Dental Expense 34,765 2,238$ 26,856$ 70113 Vision Insurance 8,268 568$ 6,816$ 70114 Life Insurance Expense 15,871 1,171$ 14,052$ 70115 Long Term Disability 18,502 1,363$ 16,356$ 70116 Wellness Program Expense 3,500 250$ 3,500$ 70117 401a Profit Sharing - Employers Contribution - -$ -$ 70120 Car Allowance 51,000 4,250$ 51,000$

Total Benefits 1,744,854 98,186 1,563,364 Total Payroll 3,825,402 289,019$ 3,427,505$ Benefits Rate 45.6% 34.0% 45.6%

BENEFITS SUMMARY(Distributed based on Actual Labor)

53

Fund Budget Actual %

100 General & Administrative 25,622 3,461 13.51%135 Prop 84 Round 2 Administration 320 20 6.17%140 Prop 84 2014 Drought Administration 685 129 18.83%145 Prop 84 Final Round Administration 2,020 73 3.60%240 Brine Line Enterprise 21,925 1,352 6.16%320 Brine Line Protection 695 1 0.14%327 Reach IV-D Corrosion Repairs 320 7 2.03%

370-01 General Basin Planning 1,715 117 6.81%370-02 USBR Partnership Studies 90 27 29.72%

373 Watershed Management Plan 1,945 134 6.86%374 Basin Monitoring Program 443 17 3.78%381 SAR Fish Conservation 220 24 10.91%

384-01 Chino TMDL Facilitation 175 23 13.29%386MONIT Storm Water Quality Standards TF 155 30 19.35%

387 Arundo Removal & Habitat Restoration 175 - 0.00%392 Emerging Constituents 45 8 17.78%

397EXPAN Water-Energy WVWD Administration - 1 100.00%398ADMIN DACI Grant 3,650 235 6.45%

477-02 LESJWA - Administration 320 33 10.16%477TMDL LESJWA - TMDL Task Force 625 90 14.36%504-301A Prop 84 2014 Drought Implementation 100 14 14.25%504-301C Prop 84 2014 Drought Implementation 110 62 56.36%504-401I Prop 84 Final Round Implementation 335 10 2.84%

504-401PA23 Prop 84 Final Round Implementation 660 5 0.68%504-401WUEAMDIN Prop 84 Final Round Implementation 295 - 0.00%504-402RATES Prop 84 Final Round Implementation - - 0.00%504-402SMART Prop 84 Final Round Implementation 395 - 0.00%

63,040 5,869 9.31%

Note: Should be at 8.33% of budget for 1 month

Santa Ana Watershed Project AuthorityLabor Hours Budget vs ActualMonth Ending July 31, 2019

54

COMMISSION MEMORANDUM NO. 2019.100 DATE: September 17, 2019 TO: SAWPA Commission SUBJECT: Budget vs. Actual Variance Report FYE 2019 4th Quarter – June 30, 2019 PREPARED BY: Karen Williams, DGM/CFO RECOMMENDATION It is recommended that the Commission receive and file the informational report on FYE 2019 Fourth Quarter Budget vs. Actual Variance Report. DISCUSSION Staff has developed a Budget vs. Actual Variance Report and presents this report on a quarterly basis. Attached is the FYE 2019 Budget vs. Actual Variance Report through June 30, 2019. The Agency’s net revenue was $1,552,721, which was $2,061,372 more favorable than budgeted. Several significant items comprise the majority of this favorable variance: Operating Revenue was $32,723 more than budgeted. This favorable variance is due to higher truck discharge than budgeted. Operating Expense was $10,780,333 less than budgeted. This favorable variance is due to a slow start for Proposition 1 and 84 projects and the delayed start of the OCSD Rock Removal Project and the Reach IV-D Corrosion Repair project. Non-Operating Revenue/Expense was $8,751,685 less than budgeted. This unfavorable variance is due to the slow start of the Proposition 1 and 84 projects and the delayed start of the OCSD Rock Removal Project and the Reach IV-D Corrosion Repair project. Favorable Revenue Variances Listed below are explanations of favorable variances of $500,000 or more for individual revenue categories: Other Income – The 585% variance of $1,210,173 is due to having received $1,075,000 in the settlement agreement from the Reach V Capital Repairs project. Unfavorable Revenue Variances Listed below are explanations of unfavorable variances of $500,000 or more for individual revenue categories: State Grant Proceeds – The 40% variance of $1,907,662 is due to slower implementation of the Proposition 84 Drought, SARCCUP, and Proposition 1 DACI projects. For the Proposition 1 DACI project, the work of identifying technical assistance needs has taken longer than anticipated. SRF Loan Proceeds – The 100% variance of $3,000,000 is due to the delay of the Reach IV-D Corrosion Project. After a condition assessment performed on Reach IV-D, the consultant has recommended that an

55

CM#2019.100 September 17, 2019 Page 2 additional field investigation be done in five years to characterize the rate of deterioration of the pipeline. Once the additional field work is performed the consultant will recommend any needed rehabilitation. Use of Reserves – The 61% variance of $4,297,306 is due to the delayed start of the Rock Removal project and Reach IV-D Corrosion Repair project which are funded by reserves. Favorable Expense Variances Listed below are explanations of favorable variances of $500,000 or more for individual expense categories: Labor – The 13% variance of $507,701 is due to not filling several vacant positions. Both the QC Manager and Administrative Assistant position were not filled in FYE 2019. Those position will be filled in FYE 2020. Consulting & Professional Services – The 18% variance of $774,369 is due to slower implementation of the Proposition 84 Drought, SARCCUP, Proposition 1 DACI projects, and the delay of the Reach IV-D Corrosion Project. Program Expenses – The 75% variance of $1,533,826 is due to slower implementation of the Proposition 84 Drought, SARCCUP, Proposition 1 DACI projects, and the slower implementation of the Arundo removal, maintenance, and biological improvement project. A contract has been executed with SAWA to do the initial phase of this project. That work should take about a year and then implementation should begin after that. Construction – The 99% variance of $6,539,353 is due to the Rock Removal project and the Reach IV-D Corrosion Repair project. The Rock Removal project which is being done by Orange County Sanitation District will not begin construction until early next year. After a condition assessment performed on Reach IV-D, the consultant has recommended that an additional field investigation be done in five years to characterize the rate of deterioration of the pipeline. Once the additional field work is performed the consultant will recommend any needed rehabilitation. Unfavorable Expense Variances Listed below are explanations of unfavorable variances of $500,000 or more for individual expense categories: Contributions to Reserves – The 27% variance of $982,534 is due to the addition of the Rate Stabilization Reserve and funding it with a $1,000,000 contribution. RESOURCE IMPACTS None. Attachment:

1. Variance Report

56

Santa Ana Watershed Project AuthorityFYE 2019 Budget vs. Actual

for the Period Ending June 30, 2019

Consolidated

FavorableFYE 2019 12-Month YTD (Unfavorable)

Budget Budget Actual Variance

Operating Revenue

Discharge Fees $11,090,587 $11,090,587 $11,123,310 $32,723 0.30%

Total Operating Revenue 11,090,587 11,090,587 11,123,310 32,723 0.30%

Operating Expenses

Labor 3,859,112 3,859,112 3,351,411 507,701 13.16%Benefits 1,686,262 1,686,262 1,464,566 221,696 13.15%Education & Training 67,800 67,800 13,978 53,822 79.38%Consulting & Professional Services 4,198,961 4,198,961 3,424,592 774,369 18.44%Operating Costs 3,295,050 3,295,050 2,983,956 311,094 9.44%Repair & Maintenance 820,540 820,540 377,480 443,060 54.00%Phone & Utilities 83,620 83,620 62,255 21,365 25.55%Equipment & Computers 374,500 374,500 256,274 118,226 31.57%Meeting & Travel 115,250 115,250 41,615 73,635 63.89%Other Administrative Costs 331,287 331,287 176,992 154,295 46.57%Other Expense 321,749 321,749 266,767 54,983 17.09%Program Expenses 2,042,873 2,042,873 509,047 1,533,826 75.08%Construction 6,550,000 6,550,000 10,647 6,539,353 99.84%Operating Transfers 144,252 144,252 162,188 -17,936 -12.43%Indirect Costs 0 0 9,155 -9,155 -100.00%

Total Operating Expenses 23,891,256 23,891,256 13,110,923 10,780,333 45.12%

Net Operating Revenue / (Deficit) -12,800,669 -12,800,669 -1,987,612 -10,747,610 83.96%

Non-Operating Revenue (Expense)

Member Agency Contributions 1,471,695 1,471,695 1,471,695 0 0.00%Participant Fees 1,309,273 1,309,273 1,168,412 -140,861 -10.76%Grant Proceeds 4,777,256 4,777,256 2,869,594 -1,907,662 -39.93%SRF Loan Proceeds 3,000,000 3,000,000 0 -3,000,000 -100.00%Mitigation Credit Sales 88,980 88,980 0 -88,980 -100.00%Debt Service -3,183,451 -3,183,451 -3,192,003 -8,552 0.27%Interest & Investments 1,173,582 1,173,582 1,619,683 446,101 38.01%Other Income 206,674 206,674 1,416,847 1,210,173 585.55%Contributions to Reserves -3,692,144 -3,692,144 -4,674,678 -982,534 -26.61%Operating Transfers 144,252 144,252 162,188 17,936 -12.43%Use of Reserves 6,995,901 6,995,901 2,698,595 -4,297,306 61.43%

Net Non-Operating Revenue / (Deficit) 12,292,018 12,292,018 3,540,333 -8,751,685 -71.20%

Net Revenue / (Deficit) -$508,651 -$508,651 $1,552,721 $2,061,372

57


for the Period Ending June 30, 2019General Fund



Operating Revenue

Total Operating Revenue $0 $0 $0 $0 0.00%

Operating Expenses

Labor 1,646,142 1,646,142 1,595,516 50,626 3.08%Benefits 719,291 719,291 697,240 22,051 3.07%Education & Training 57,300 57,300 13,793 43,507 75.93%Consulting & Professional Services 249,400 249,400 307,420 -58,020 -23.26%Operating Costs 6,090 6,090 3,240 2,850 46.80%Repair & Maintenance 105,540 105,540 71,205 34,335 32.53%Phone & Utilities 73,620 73,620 54,220 19,400 26.35%Equipment & Computers 232,900 232,900 211,176 21,724 9.33%Meeting & Travel 77,500 77,500 17,476 60,024 77.45%Other Administrative Costs 226,777 226,777 116,433 110,344 48.66%Other Expense 164,703 164,703 106,194 58,509 35.52%Indirect Costs -3,121,569 -3,121,569 -2,468,414 -653,155 20.92%

Total Operating Expenses 437,695 437,695 725,499 -287,805 -65.75%

Net Operating Revenue / (Deficit) -437,695 -437,695 -725,499 287,805 -65.75%


Member Agency Contributions 650,695 650,695 650,695 0 0.00%Interest & Investments 0 0 84,189 84,189 100.00%Other Income 0 0 1,424 1,424 100.00%Building Reserve -100,000 -100,000 -100,000 0 0.00%Retiree Medical Reserve -113,000 -113,000 -95,534 17,466 -15.46%

Net Non-Operating Revenue / (Deficit) 437,695 437,695 540,774 103,079 23.55%

Net Revenue / (Deficit) $0 $0 -$184,726 -$184,726

58


for the Period Ending June 30, 2019Brine Line Enterprise Fund



Operating Rev enue

Discharge Fees $11,090,587 $11,090,587 $11,123,310 $32,723 0.30%

Total Operating Revenue 11,090,587 11,090,587 11,123,310 32,723 0.30%

Operating Expenses

Labor 1,033,117 1,033,117 1,005,423 27,694 2.68%Benefits 451,427 451,427 439,370 12,057 2.67%Education & Training 10,500 10,500 185 10,315 98.24%Consulting & Professional Services 290,000 290,000 153,352 136,648 47.12%Operating Costs 3,278,960 3,278,960 2,979,857 299,103 9.12%Repair & Maintenance 715,000 715,000 306,276 408,724 57.16%Phone & Utilities 10,000 10,000 8,035 1,965 19.65%Equipment & Computers 137,500 137,500 44,993 92,507 67.28%Meeting & Travel 8,500 8,500 1,486 7,014 82.52%Other Administrative Costs 62,100 62,100 39,289 22,811 36.73%Other Expense 157,046 157,046 148,740 8,306 5.29%Indirect Costs 1,457,293 1,457,293 1,418,651 38,642 2.65%


Net Operating Revenue / (Deficit) 3,479,144 3,479,144 4,577,655 -1,098,511 -31.57%

Non-Operating Rev enue (Expense)

Interest & Investments 1,173,582 1,173,582 1,476,635 303,053 25.82%Other Income 0 0 1,211,036 1,211,036 100.00%Debt Service -3,183,451 -3,183,451 -3,192,003 -8,552 0.27%Use of Reserves 2,009,869 2,009,869 2,009,869 0 0.00%Contributions to Reserves -3,479,144 -3,479,144 -4,479,144 -1,000,000 28.74%

Net Non-Operating Revenue / (Deficit) -3,479,144 -3,479,144 -2,973,607 505,537 -14.53%

Net Revenue / (Deficit) $0 $0 $1,604,047 $1,604,047

59


for the Period Ending June 30, 2019OWOW Fund



Operating Revenue


Operating Expenses

Labor 838,558 838,558 569,358 269,200 32.10%Benefits 366,413 366,413 248,809 117,604 32.10%Consulting & Professional Services 2,050,850 2,050,850 1,718,822 332,028 16.19%Equipment & Computers 4,100 4,100 105 3,995 97.44%Meeting & Travel 25,800 25,800 21,617 4,183 16.21%Other Administrative Costs 18,660 18,660 10,920 7,740 41.48%Other Expense 0 0 11,205 -11,205 -100.00%Program Expenses 1,892,873 1,892,873 509,047 1,383,826 73.11%Operating Transfer 0 0 17,936 -17,936 -100.00%Indirect Costs 1,182,852 1,182,852 803,364 379,488 32.08%


Net Operating Revenue / (Deficit) -6,380,106 -6,380,106 -3,911,183 -2,468,923 38.70%


Member Agency Contributions 801,000 801,000 801,000 0 0.00%Participant Fees 437,722 437,722 337,816 -99,906 -22.82%Grant Proceeds 4,777,256 4,777,256 2,869,594 -1,907,662 -39.93%Other Income 0 0 10,800 10,800 100.00%Operating Transfer 0 0 17,144 17,144 100.00%Interest & Investments 0 0 17,339 17,339 100.00%

Net Non-Operating Revenue / (Deficit) 6,015,977 6,015,977 4,053,694 -1,962,284 -32.62%

Net Revenue / (Deficit) -$364,129 -$364,129 $142,511 $506,640

Project Reimbursement (Prop 84 Capital) $12,787,335 $9,590,501 $24,982,098 -$15,391,597

60


for the Period Ending June 30, 2019Roundtable Fund



Operating Revenue


Operating Expenses

Labor 154,104 154,104 150,825 3,279 2.13%Benefits 67,337 67,337 65,911 1,426 2.12%Consulting & Professional Services 731,211 731,211 643,184 88,027 12.04%Operating Costs 0 0 219 -219 -100.00%Meeting & Travel 1,450 1,450 1,029 421 29.05%Other Administrative Costs 10,250 10,250 10,350 -100 -0.98%Other Expenses 0 0 627 -627 -100.00%Construction 0 0 10,647 -10,647 -100.00%Program Expenses 150,000 150,000 0 150,000 100.00%Operating Transfer 144,252 144,252 144,252 0 0.00%Indirect Costs 217,376 217,376 212,814 4,562 2.10%

Total Operating Expenses 1,475,981 1,475,981 1,239,858 236,122 16.00%

Net Operating Revenue / (Deficit) -1,475,981 -1,475,981 -1,239,858 -236,122 16.00%


Member Agency Contributions 20,000 20,000 20,000 0 0.00%Participant Fees 871,551 871,551 830,596 -40,955 -4.70%Mitigation Credit Sales 88,980 88,980 0 -88,980 -100.00%Other Income 206,674 206,674 193,588 -13,086 -6.33%Operating Transfer 144,252 144,252 145,044 792 0.55%Interest & Investments 0 0 41,520 41,520 100.00%

Net Non-Operating Revenue / (Deficit) 1,331,457 1,331,457 1,230,747 -100,710 -7.56%

Net Revenue / (Deficit) -$144,524 -$144,524 -$9,111 $135,413

61


for the Period Ending June 30, 2019Capital Fund



Operating Revenue


Operating Expenses

Labor 187,191 187,191 30,289 156,902 83.82%Benefits 81,794 81,794 13,236 68,558 83.82%Consulting & Professional Services 877,500 877,500 601,814 275,686 31.42%Operating Costs 10,000 10,000 641 9,359 93.59%Meeting & Travel 2,000 2,000 7 1,993 99.65%Other Administrative Costs 13,500 13,500 0 13,500 100.00%Construction 6,550,000 6,550,000 0 6,550,000 100.00%Indirect Costs 264,047 264,047 42,738 221,309 83.81%

Total Operating Expenses 7,986,032 7,986,032 688,726 7,297,306 91.38%

Net Operating Revenue / (Deficit) -7,986,032 -7,986,032 -688,726 -7,297,306 91.38%


SRF Loan Proceeds 3,000,000 3,000,000 0 3,000,000 100.00%Use of Reserves 4,986,032 4,986,032 688,726 4,297,306 86.19%

Net Non-Operating Revenue / (Deficit) 7,986,032 7,986,032 688,726 7,297,306 91.38%

Net Revenue / (Deficit) $0 $0 $0 $0

62

Financial Report for the Inland Empire Brine Line Enterprise/CIP for the 4th Quarter Ending

June 30, 2019


Agenda

• Cash & Investments• Reserve Account Balances• Transfer, Uses & Contributions from/to Reserves• Enterprise Revenues• Enterprise Expenses• Enterprise Performance• Capital Improvement Program

1

2

63

Cash & Investments

$52,610,454

LAIF, $40,235,792 ,

76%

CD's, $992,115 , 2%

Securities, $10,994,097 ,

21%

T-Strips, $388,450 , 1%

Cash & Investments

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Securities LAIF T-Strips Avg Rate ofReturn

1.759%2.428%

6.360%

2.310%

Interest Rate Analysis

3

4

64

Reserve Account Balances

Reserve Account BalanceSelf Insurance $4,166,085Debt Retirement 4,801,601Pipeline Replacement 21,015,512OCSD Rehabilitation 3,628,707Capacity Management 11,620,440OCSD Future Capacity 1,779,127Flow Imbalance Reserve 85,989Rate Stabilization Reserve 1,000,000Operating Reserve 4,512,993

Total Reserves $52,610,454

Reserve Account Balances Trends

Reserve Balance @ 09/30/18

Balance @ 12/31/18

Balance @ 03/31/19

Balance @ 06/30/19

Self Insurance $4,031,392 $4,074,343 $4,123,066 $4,166,085

Debt Retirement 4,888,429 4,424,871 4,254,145 4,801,601

Pipeline Replacement 16,287,515 20,125,979 20,567,851 21,015,512

OCSD Rehabilitation 3,575,919 3,591,892 3,612,870 3,628,707

Capacity Mgmt 11,451,577 11,502,545 11,569,724 11,620,440

OCSD Future Capacity 1,753,246 1,761,077 1,771,363 1,779,127

Flow Imbalance Reserve 94,097 85,103 85,613 85,989

Rate Stabilization Reserve 0 0 0 1,000,000

Operating Reserve 3,242,249 3,133,547 3,836,117 4,512,993

Total $45,324,424 $48,699,357 $49,820,749 $52,610,454

5

6

65

• Pipeline Replacement Reserve– Contribution of $1,500,000– Contribution of $1,075,000 Reach V Settlement Agreement– Use of $242,121 Fund 320 Brine Line Protection– Use of $240,101 Fund 327 Reach IV-D Corrosion Repairs

• Self Insurance Reserve– Contribution of $100,000

• Debt Service Reserve– Contribution of $1,879,144– Use of $2,009,869 debt service payments

• Flow Imbalance Reserve– Use of $9,415 meter error/Bonview

• Rate Stabilization Reserve– Contribution of $1,000,000 from Operating Reserves

Transfers, Use and Contributions To/From Reserves

Total Operating Revenues

Source Actual Budget Variance Positive/(Negative)

BOD/TSS Fees $2,044,582 $2,161,360 ($116,778)Volumetric Fees 3,495,994 3,452,900 43,094Fixed Charges 4,971,577 4,971,577 0Sampling Surcharge 11,628 0 11,628Truck Discharge 556,080 472,500 83,580Permit Fees 43,450 32,250 11,200Total Operating Revenues $11,123,310 $11,090,587 $32,723

7

8

66

Operating Revenues vs. Budget

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

BOD/TSSFees

Volumetric FixedCharges

SamplingSurcharge

Truck DumpFees

Permit Fees

Mill

ions

Budget vs. Actual

ActualBudget

Total Operating Expenses

Source Actual Budget VariancePositive/(Negative)

Treatment Costs ($2,089,769) ($2,161,360) $71,591

Volumetric Costs (697,188) (708,100) 10,912

Operating Costs (192,900) (409,500) 216,600

General & Administration (3,106,172) (3,327,483) 221,311

Facility Repair & Maintenance (306,276) (715,000) 408,724

Consulting & Prof. Services (153,352) (290,000) 136,648

Total Operating Expenses ($6,545,656) ($7,611,443) $1,065,787

9

10

67

Operating Expenses vs. Budget

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

Treatment Volumetric Operating Gen & Adm FacilityRepair

Consulting

Mill

ions

Budget vs. Actual

ActualBudget

Non Operating Revenues and Expenses

Source Actual Budget VariancePositive/(Negative)

Use of Reserves (Debt Service) $2,009,869 $2,009,869 $0

Interest & Investments 1,476,635 1,173,582 303,053

Other Income 1,211,036 0 1,211,036

Debt Service Payments (3,192,003) (3,183,451) (8,552)

Contributions to Reserves (4,479,144) (3,479,144) (1,000,000)

Total Non Operating ($2,973,607) ($3,479,144) $505,537

11

12

68

Enterprise Performance

SAWPA Billed

OCSD Billing Difference

Total Flow (MG) 3,717.989 3,728.280 (10.291)

Total BOD (1,000 lbs) 1,372.566 1,381.198 (8.632)

Total TSS (1,000 lbs) 4,213.898 4,136.897 77.001

BOD cost per 1,000 lbs $307.00 $285.00 $22.00

TSS cost per 1,000 lbs $429.00 $410.00 $19.00

Flow, BOD, TSS Actual vs. OCSD Billing


Revenue Billed

OCSD Charges Difference

Flow (pass through) $695,264 $697,188 ($1,924)

BOD 447,329 393,642 53,687

TSS 1,597,252 1,696,128 (98,876)

TD Allowance 37,615 0 37,615

Total $2,777,460 $2,786,958 ($9,498)

OCSD Flow, BOD & TSS Charges vs. Revenue Billed

13

14

69


$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

Flow (pass through) BOD TSS TD Allowance

Mill

ions

OCSDCharges

RevenueCollected

OCSD Flow, BOD & TSS Charges vs. Revenue Collected

Capital Project Fund

Funding = Reserves and SRF Loans

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

D/S Prado in OC Above Prado D/S Prado in Riv Reach V CapitalRepairs

Reach IV-DCorrosion

RepairFunding $11,014,580 $2,125,050 $14,482 $30,862,396 $380,616Costs $11,014,580 $2,125,050 $14,482 $30,862,396 $380,616

Mill

ions

Costs (Project to Date) vs. Funding

15

16

70

Capital Project Fund

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

D/S Prado in OC Above Prado Reach 5 Repairs Reach IV-DCorrosion Repairs

Costs $212,349 $24,179 $309,918 $142,279Budget $3,058,047 $678,500 $269,167 $3,980,317

Mill

ions

Costs vs. Budget

Capital Project Fund (320)

• D/S Prado in OC – emergency protection work, pipeline relocation

• Above Prado - pipeline relocation and manhole lid adjustments – when required

• D/S Prado in Riv County – bank armoring

Brine Line Protection / Relocation Projects

17

18

71

Questions ?

19

72

Financial Report for the 4th Quarter Ending June 30, 2019


Agenda

• Cash & Investments• Fund Overview• General Fund• OWOW Funds• Roundtable Funds

1

2

73

Cash & Investments

Checking Accounts$1,660,647

25%

LAIF$4,551,367

68%

Savings - EPA$458,596

7%

$6,670,610

Cash & Investments

General Fund $3,102,364

OWOW Fund 1,267,823

Roundtable Fund 1,841,827

Fiduciary Fund 458,596

Total $6,670,610

Total by Fund

3

4

74

Cash & Investments

Fund Checking (Cash)

LAIF Account Total

General Fund $1,660,647 $757,607 $2,418,254

Building Reserve 0 684,110 684,110

Total $1,660,647 $1,441,717 $3,102,364

General Funds

Cash & Investments

Fund LAIF Account

General Basin Planning $162,528

USBR Partnership Studies 48,264

Watershed Mgmt Plan 249,154

Water – Energy DAC Grant 235,095

Prop 84 SARCCUP Projects 572,782

Total $1,267,823

OWOW Funds

5

6

75

Cash & Investments

Fund LAIF Account

Basin Monitoring $318,907RWQ Monitoring TF 247,885SAR Fish Conservation 119,416Middle SAR TMDL TF 128,508Emerging Constituents TF 76,156Mitigation Banking 950,955Total $1,841,827

Roundtable Funds

Cash & Investments

Fund Savings EPA

Legal Defense Fund $458,596

Total $458,596

Fiduciary Funds

7

8

76

Cash & Investments

1.9441.998

2.0642.144

2.2082.294

2.3552.392

2.4362.445

2.4492.428

0

0.5

1

1.5

2

2.5

3

Jul'18 Aug'18 Sep'18 Oct'18 Nov'18 Dec'18 Jan'19 Feb'19 Mar'19 Apr'19 May'19 Jun'19

LAIF Interest Rates

Cash & Investments

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Interest Rate Comparison

Securities LAIF Ave Rate of Return 2yr Treasury

9

10

77

Analysis by Fund Type

General Fund OWOW RoundtableFunding/Revenue $736,308 $4,053,694 $1,230,747Costs/Expenses $921,033 $3,911,183 $1,239,858

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

Thou

sand

s

Revenues and Expenses

General Fund

Revenue ExpenseActual $736,308 $921,033Budget $650,695 $650,695

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Thou

sand

s

Budget vs. Actual

11

12

78

OWOW Funds

Revenue ExpenseActual $4,053,694 $3,911,183Budget $6,015,977 $6,380,106

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Thou

sand

s

Budget vs. Actual

Project Reimbursement (Prop 84) $24,982,098

OWOW Funds

GeneralPlanning

USBRPartnership

WatershedMgmt

Energy -Water DAC

GrantProp 1 - DACI

GrantProp 84Program

MgmtProp 84Drought

Prop 84SARCCUP

Funding $361,834 $21,071 $661,514 $454,656 $1,067,482 $472,702 $472,628 $541,810Costs $305,388 $9,313 $485,680 $685,052 $1,067,482 $472,737 $472,628 $412,903

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Hun

dred

s

Costs vs. Funding

13

14

79

Roundtable Funds

Revenue ExpenseActual $1,230,747 $1,239,858Budget $1,331,457 $1,475,981

$1,100

$1,150

$1,200

$1,250

$1,300

$1,350

$1,400

$1,450

$1,500

Thou

sand

s

Budget vs. Actual

Roundtable Funds

Imported WaterRecharge

BasinMonitoring

SAR FishConservation

Middle SARTMDL TF

RWQMonitoring TF

ArundoRemoval

EmergingConstiuents LESJWA Admin

Funding $792 $283,474 $31,706 $254,274 $395,124 $19,729 $42,060 $203,588Costs $71 $260,404 $121,247 $202,779 $380,164 $14,867 $56,739 $203,588

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

Thou

sand

s

Costs vs. Funding

15

16

80

Questions ?

17

81


82

General

Manager’s

Report September 2019

Santa Ana Watershed Project Author ity | 11615 Ster l ing Avenue, R ivers ide, CA 92503 | www.sawpa.org

I N S I D E T H E

S E P T E M B E R

R E P O R T

1 Inland Empire Brine

Line at Prado Basin

2 2019 Santa Ana

Riverwalk

3 Rock Removal

Project

Inland Empire Brine Line at Prado Basin

As the Least Bell’s Vireo begin to leave the Prado basin area, staff is preparing to re-establish the Brine Line access road and inspecting all Maintenance Access Struc-tures in anticipation of the rainy season. Maintenance is provided as needed, and can include bolt/nut replacement, gasket replacement, video inspection, and line cleaning. Some maintenance access structures are only accessible after construct-ing bridges over existing crossings. The bridges are set-up and removed by SAWPA

staff using rented heavy equipment, as well as, steel beams and plates.

Prado Basin

Prado Basin Access Road

83

General Manager’s Report - September 2019

Santa Ana Watershed Project Author ity

11615 Ster l ing Avenue, Rivers ide, CA 92503 | www.sawpa.org 18

2019 Santa Ana Riverwalk -

Annual Santa Ana Sucker Fish

Habitat Survey

This year's Santa Ana Riverwalk is scheduled for Thursday, November 7, 2019 at

8:00 AM. Join the Santa Ana Sucker Conservation Team and volunteers from local,

state, federal agencies, non-profits, and mem-

bers of the public to participate in this annual

habitat survey focused on a native Southern

California fish, the Santa Ana Sucker. You will

support a group of volunteers to field survey

the habitat of the Santa Ana River between the

City of Colton and the City of Corona.

For more details, visit our website at:

https://sawpa.org/task-forces/santa-ana-sucker-conservation-team/#riverwalk

Rock Removal Project

The Rock Removal Project was delayed until September 16, 2019, due to the

presence and nesting activity of the Least Bell’s Vireo. Progress meetings have

resumed and the contractor will mobilize to commence work the week of Sep-

tember 16, 2019. SAWPA staff will continue to represent SAWPA’s interests dur-

ing the implementation of the Rock Removal Project, which will continue through

early 2020.

84

https://sawpa.org/task-forces/santa-ana-sucker-conservation-team/#riverwalk

Santa Ana Watershed Project Authority Executive Financial Information Report

June 2019

Staff comments provided on the last page are an integral part of this report.

Overview This report highlights the agency’s key financial indicators for the Fiscal Year‐to‐Date (FYTD) through June 2019 unless otherwise noted.

Budget to Actual Expenses by Fund Type

Favorable

Annual Budget

FYTD Budget

FYTD Actual

Favorable (Unfavorable)

Variance General Fund $650,695 $650,695 $921,033 ($270,338)

Brine Line Enterprise 11,090,587 11,090,587 11,024,800 65,787

Debt Service Fund 3,183,451 3,183,451 3,192,003 (8,552)

Capital Project Fund 7,986,032 7,986,032 688,726 7,297,306

OWOW Fund 6,380,106 6,380,106 3,911,183 2,468,923

Roundtable Fund 1,475,981 1,475,981 1,239,858 236,123

Total $30,766,852 $30,766,852 $20,977,603 $9,789,249

Budget to Actual Expenses by Fund Type

0

2

4

6

8

10

12

GeneralFund

Brine LineFund

Debt ServiceFund

CapitalProject Fund

OWOWFund

RoundtableFund

Millions

Budget

Actual

85

Budget to Actual Revenues by Source

Concern

Annual Budget

FYTD Budget

FYTD Actual

Favorable (Unfavorable)

Variance Member Contributions $1,471,695 $1,471,695 $1,471,695 $‐

Participant Fees 1,309,273 1,309,273 1,168,412 (140,861)

Discharge Fees 11,090,587 11,090,587 11,123,310 32,723

SRF Loans 3,000,000 3,000,000 ‐ (3,000,000)

Interest & Investments 1,173,582 1,173,582 1,619,683 446,101

Use of Reserves 6,995,901 6,995,901 2,698,595 (4,297,306)

Mitigation Credit Sales 88,980 88,980 ‐ (88,980)

Other 206,674 206,674 1,416,847 1,210,173

Operating Transfers 144,252 144,252 162,188 17,936

Grant Proceeds 4,777,256 4,777,256 2,869,594 (1,907,662)

Total $30,258,200 $30,258,200 $22,530,324 ($7,727,876)

Budget to Actual Revenues by Source

0.0

2.0

4.0

6.0

8.0

10.0

12.0

MemberContributions

ParticipantFees

DischargeFees

SRF Loans Interest &Investments

Use ofReserves

MitigationCredit Sales

Other OperatingTransfers

GrantProceeds

Millions Budget

Actual

86

Total Cash & Investments ‐ June

Reserve Fund Balance ‐ June

Amount General Fund $2,418,254 Building Fund 684,110 Legal Defense Fund 458,596 OWOW Fund 1,267,823 Roundtable Fund 1,841,827 Self Insurance 4,166,085 Debt Retirement 4,801,601 Pipeline Replacement 21,015,512 OCSD Rehabilitation 3,628,707 Capacity Management 11,620,440 Future Capacity 1,779,127 Rate Stabilization 1,000,000 Flow Imbalance 85,989 Brine Line Operating 4,512,993

Total Reserves $59,281,063

Checking3%LAIF

75%

Securities18%

Legal Defense Fund1%

Certificates of Deposit

2%Treasury Strips

1%

$59.3 Million

87

Legend

Compared to Budget

Ahead or Favorable Above +5% Favorable Revenue or Expense Variance

On Track +5% to ‐2% Variance

Behind ‐3% to ‐5% Variance

Concern Below ‐5% Variance

Staff Comments

For this month’s report, the item(s) explained below are either “behind”, a “concern”, or have changed significantly from the prior month. 1) Total revenues are 26% below budget. The large variances are explained below. The 100%ill recommend any needed rehabilitation.

a. Use of Reserves are 61% below budget. This variance is due to the Rock Removal

project and the Reach IV‐D Corrosion Repair project. The Rock Removal project

which is being done by Orange County Sanitation District was delayed due to

numerous rain days and now the presence and nesting activity of the Least Bell’s

Vireo. Work will resume in late summer. After a condition assessment performed

on Reach IV‐D, the consultant has recommended that an additional field

investigation be done in five years to characterize the rate of deterioration of the

pipeline. Once the additional field work is performed the consultant will

recommend any needed rehabilitation.

b. SRF Loans are 100% below budget. This variance is due to the delay of the Reach IV‐D Corrosion Repair project. With the delay, SRF Loans will not be needed for at least another five years.

c. Grant Proceeds are 40% below budget. This variance of is due to slower implementation of the Proposition 84 Drought and Proposition 1 DACI projects. For the Proposition 1 DACI project, the work of identifying technical assistance needs has taken longer than anticipated.

d. Other Revenues are 585% above budget. This variance is due to receipt of $1,075,000 from the Reach V Settlement Agreement.

88

September 9, 2019

To: Santa Ana Watershed Project Authority

From: Michael Boccadoro

Beth Olhasso

Maddie Munson

RE: August Report

Overview:

Water supply conditions continue to be well above normal for this time of the year thanks to a

significant sierra snowpack. While most major reservoir levels are declining, they remain at or above

historical averages for this time of year.

The State Water Resources Control Board (SWRCB) recently started the process to create a long-term

plan allocate the $130 million annually approved by the legislature to implement the Safe and

Affordable Drinking Water Program. Staff and stakeholders committed to a robust public process as

the program is created.

The California Air Resources Board (CARB) has released a two-pronged regulatory approach aimed at

expanding zero-emission (ZEV) truck fleets to help meet the state’s air quality and GHG targets;

accelerate development of a self-sustaining ZEV market and maximize the use of ZEVs. The plan calls

for data collection to help inform a 2022 process that would set guidelines requiring fleet owners to

purchase a yet-to-be-determined percentage of zero-emission trucks.

As long expected, the SWRCB Division of Drinking Water (DDW) has released new Notification

Levels (NNLs) for PFOA and PFOS. The new guidelines lower the current notification levels from 14

parts per trillion (PPT) to 5.2 for PFOA and from 13 to 6.5 PPT for PFOS. DDW also asked for the

Office of Environmental Health Hazzard Assessment to start the process of establishing a public

health goal, followed by a Maximum Contaminant Level.

The Legislature has four days left to complete any business before the adjournment of the first year of

the two-year session. With safe and affordable drinking water complete, the main issue left for the

water community is SB 1 (Atkins), the pro Tem’s bill aimed at ensuring the state would adopt any

environmental regulations in place at the time Tump took office if the federal government weakens any

environmental regulations. The bill could have significant effects on the delta and the operation of the

State Water Project. The administration, proponents and opponents are all working to come to a

resolution in the final days of the session.

Finally, there are four resource/water bonds currently circling around Sacramento, with two introduced

in the last three weeks. All the bonds are expected to be worked on over the break and will be actively

pursued at the beginning of 2020.

89


Status Report – August 2019

Water Supply Conditions

Water managers successfully managed significant runoff throughout the spring, allowing enough space

in reservoirs for flood control, but also keeping as much water in storage for dry years. Water storage

is at or above average levels at reservoirs throughout the state.

90

SWRCB Starts Safe Drinking Water Program

The State Water Resources Control Board (SWRCB) recently started the process to create a long-term

plan allocate the $130 million annually approved by the legislature to implement the Safe and

Affordable Drinking Water Program. The fund will be used to fund grants, loans, contracts, or services

to help water systems provide safe and affordable drinking water. The Division of Financial Assistance

will work with the Division of Drinking Water, the Department of General Services, environmental

justice groups and other stakeholders to develop a program implementation plan for consideration in

June 2020.

SWRCB staff have outlined tasks for the upcoming year, including identifying high-risk water

systems; consolidation and regional solutions; accelerating project timelines, permitting; and program

tracking and reporting. Their goal is to provide preliminary planning assistance to 100 communities

and to accelerate or provide permanent solutions for 75 communities.

The Division of Drinking Water Releases New Notification Levels for PFOA/PFAS

As long expected, the SWRCB Division of Drinking Water (DDW) has released new Notification

Levels (NNLs) for PFOA and PFOS. The new guidelines lower the current notification levels from 14

parts per trillion (PPT) to 5.2 for PFOA and from 13 to 6.5 PPT for PFOS. The guidelines are based on

health recommendation by the Office of Environmental Health Hazard Assessment (OEHHA).

OEHHA released a report the same day outlining their research. It can be found here.

Notification levels are a nonregulatory, precautionary health-based measure for concentrations in

drinking water that warrant notification and further monitoring and assessment. Public water systems

are encouraged to test their water for contaminants with notification levels. If a test is performed, any

exceedances are required to be reported to their governing boards and the SWRCB and are urged to

report to customers.

Additionally, the SWRCB has requested OEHHA develop public health goals for PFOA and PFOS.

This is the next step on the way to developing an MCL. Other chemicals in the broader group of

PFOA/PFOS may be considered either individually or grouped.

While this first phase is only targeting drinking water, the state is continuing to assess how big the

PFOA/PFOS problem is with a robust sampling program around wastewater and industrial sites. As the

state collects this data it is possible the next phase could be regulating POTWs.

A large stakeholder group, of which WCA participates, has been meeting in Sacramento to discuss

developments and plan next steps. It is very likely that there will be legislation in 2020 on the issue.

Legislative Update

The legislature has just four days left in the first year of the two-year session. Both the Senate and

Assembly Appropriations Committees took up their Suspense Files on August 29, significantly

narrowing the number of bills awaiting action in the final weeks.

Clean, Safe and Affordable Drinking Water:

With the big-ticket item off the table, SB 200 and the corresponding budget actions, the only item left

in drinking water topics is SB 414 (Caballero), the Small System Water Authority Act of 2019. The

bill is similar to their AB 2050 that was vetoed last year and would create a mechanism for small water

systems to consolidate and share technical, managerial and financial support. The bill recently took

91

https://oehha.ca.gov/media/downloads/water/notification-level/final-pfoa-pfosnl082119.pdf

amendments at the request of the SWRCB and was made a two-year bill by the appropriations

committee.

Recycled Water:

AB 292 (Quirk): AB 292 builds on previous legislation, AB 574 (Quirk, 2017) and recent work by the

SWRCB to remove the terms “direct potable reuse” and “indirect potable reuse” in state code in order

to better align the terms with how the water agencies are using recycled water. AB 574 (2017, Quirk)

created four distinct types of potable reuse projects – “Indirect Potable Reuse for Groundwater

Recharge”, “Reservoir Water Augmentation”, and Direct Potable Reuse, which includes two

subcategories, “Raw Water Augmentation” and “Treated Drinking Water Augmentation.” With the

more precise definitions added by AB 574, the terms “indirect” and “direct” only add to confusion

about potable reuse and proposed projects. The term “Direct Potable Reuse” also implies that purified

recycled water is going directly into the drinking water supply, which is not the case with Raw Water

Augmentation projects. For example, opponents of a groundwater recharge project in the Central

Coast incorrectly labeled the project “Direct Potable Reuse” and the confusion in the statute made this

difficult to correct. This bill is sponsored by WateReuse California. The bill hasn’t received a single no

vote the entire time through the process, but the SWRCB voiced concerns about eliminating the terms

when they are about to release their “Direct Potable Reuse Report” and are still working on raw water

augmentation regulations. Because of these concerns, WateReuse and Asm. Quirk decided to park the

bill on the Senate Floor for the year, hoping to pick it back up again next year.

AB 1180 (Friedman): AB 1180 will require the SWRCB to update the state’s non-potable recycled

water regulations by 2023. These regulations have not been revised since 2000. An update to these

regulations, incorporating the knowledge and lessons learned from nearly two decades of non-potable

water recycling, will help the state to achieve its ambitious goals for recycled water use. The bill also

promotes recycled water use for dual plumbed building and for commercial, industrial and institutional

(CII) uses by requiring the Water Board, through its update of Title 17 backflow regulations, to include

the use of a change over device, such as a swivel ell. This bill is also sponsored by WateReuse. The

bill passed off the Suspense File and is awaiting final floor action in the Senate where it is in consent.

SB 1 (Atkins)

As previously reported, SB 1 by pro Tem Atkins, is an attempt to backstop any environmental

regulations the Trump administration tries to roll back. The State Water Contractors and other water

agencies have raised serious concerns about key provisions of the bill. A coalition of business

(California Chamber of Commerce) and water interests has formed to try to secure amendments to

address those concerns.

The main concern is that the language would handcuff the CA Department of Fish and Wildlife (DFW)

from being able to apply new science, new adaptive management practices or consider current

hydrologic conditions, by locking in the current biological opinions, and incidental take permits in

place as of January 19, 2017. It would also allow the state to add federally listed endangered species to

the California Endangered Species Act, bypassing the normal public process.

Locking these permits in place would also essentially end any discussion of voluntary agreements

(VAs). The VA process began after the State Water Resources Control Board issued a draft plan for 40

percent unimpaired flows on the San Joaquin River (a second phase would consider unimpaired flows

on the Sacramento River). Massive backlash led to the start of talks to create VAs. VA talks have been

fruitful and are close to completion. The VAs will rely on a series of measures to sustainably manage

92

flows, restore habitat and protect native species. If the 2017 rules are locked into place, the VAs could

fall apart and the state would have to start process over again.

The proponents of the bill, lead by the Defenders of Wildlife, are believed to be seeking these changes

because they are unhappy with the VAs and because they would like to get two species, orca whales

and steelhead trout, listed under the CA Endangered Species Act.

Because this bill is authored by the pro Tem, and clearly a top priority for her as it is the first bill

introduced in the year, opponents know that defeating the bill is unlikely. The oppose unless amended

coalition, including MWD, ACWA and the State Water Contractors, has offered a set of amendments

that would take care of their opposition without compromising the pro Tem’s goal of protecting

California from of federal rollback on environmental regulations. The Newsom administration has

gotten involved because of the implications for the VAs and is trying to bring parties together to come

up with a solution.

The Administration has weighed in with amendments that, while not public, are rumored to take care

of the concerns of the opposition coalition.. The bill passed off the Suspense File with amendment that

make the bill even worse. The water community, including SAPWA have strongly rallied to try to get

important and necessary amendments into the bill before the Sept 10 deadline. It remains unclear if

amendments will be taken and if they are not, if there is any chance for a veto from the Governor.

Water Bonds

Within the last ten days two additional water bonds were introduced in the legislature. As reported

previously, an initiative was submitted for 7.8 billion bond for the November ballot, and SB 45 (Allen)

has been in print since January. Recently, Speaker Rendon indicated that he was open to entertaining a

water bond and two were subsequently introduced in the Assembly. Eduardo Garcia (D-Coachella),

chair of the Assembly Water, Parks and Wildlife Committee, introduced AB 352, the $3.9 billion

Wildlife Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of

2020. Assemblymember Kevin Mullin (D-San Francisco) introduced AB 1298 the Climate Resiliency,

Fire Risk Reduction, Recycling, Groundwater and Drinking Water Supply, Clean Beaches, and Jobs

Infrastructure Bond Act of 2020 without funding amounts included.

It is almost certain that none of these bonds will move in the coming days, leaving the discussion for

the interim and consideration on the November ballot. WCA staff have met with the bill authors and

leadership to tee up SAWPA’s interest in getting IRWM funds added into the final package.

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s a w p a · 9/17/2019 · staff present rich haller, larry mckenney, karen williams, dean unger,...

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