table of contents agenda 3 · update: long-term water conservation - ab 1668 and sb 606 update:...

Table of Contents

Agenda 3Minutes of the Regular Board Meeting held April 16, 2018

Minutes of the Regular Board Meeting held April 16,2018 6

Minutes of the Special Board Meeting held April 19, 2018Minutes of the Special Board Meeting held April 19,2018 16

Check RegisterCheck Register 19

Employee Expense Reimbursement ReportEmployee Expense Reimbursement Report 23

Community Outreach ReportCommunity Outreach Report 24

Consider Approval of Director Expense ReportsConsider Approval of Director Expense Reports 29

Treasurer's ReportTreasurer's Report 39

Agreement for Landscape MaintenanceAgreement for Landscape Maintenance 45

Claim for Damages - Mr. Frank D. HayesClaim for Damages - Mr. Frank D. Hayes 47

Schedule Public Hearing for Standby Charge AssessmentSchedule Public Hearing for Standby ChargeAssessment 51

Local Agency Formation Commission FY 2018-19 Budget andAllocation of Net Operating Costs (information only)

Local Agency Formation Commission FY 2018-19Budget and Allocation of Net Operating Cost(information only) 54

Receive, Approve and File Investment Transactions Report forMonth Ending April 30, 2018

Receive, Approve and File Investment TransactionsReport for Month Ending April 30, 2018 60

Review of Revenue Bond Funds Held in Trust (information only)Review of Revenue Bond Funds Held in Trust(information only) 72

Update: Long-term Water Conservation - AB 1668 and SB 606Update: Long-term Water Conservation - AB 1668 andSB 606 74

Adoption of Resolution No. 05-18-652 - Budget Trailer Bill: Safeand Affordable Drinking Water Act (based on SB 623, Monning,"Public Goods Charge")

Adoption of Resolution No. 05-18-652 - Budget TrailerBill: Safe and Affordable Drinking Water Act (based onSB 623, Monning, "Public Goods Charge") 77

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ACWA's Request for Signatures on Comment Letter to the StateWater Resources Control Board - 2017 Electronic AnnualReport

ACWA's Request for Signatures on Comment Letter tothe State Water Resources Control Board - 2017Electronic Annual Report 88

P-W-R JWL Report for Water Purchases for the Month of April2018

P-W-R JWL Report for Water Purchases for the Monthof April 2018 93

Follow-up Regarding Prior Board ActionsFollow-up Regarding Prior Board Actions 94

District Activities Calendars for June, July and August 2018District Activities Calendars for June, July and August2018 96

Puente Basin Watermaster 2018-19 Final Operating Safe Yield(information only)

Puente Basin Watermaster 2018-19 Final OperatingSafe Yield (information only) 99

Puente Basin Watermaster 2018-19 Tentative Operating Budget(information only)

Puente Basin Watermaster 2018-19 Tentative Budget(information only) 123

District Water Supply and Conservation UpdateDistrict Water Supply and Conservation Update 126

Statewide Water Supply ConditionsStatewide Water Supply Conditions 132

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WALNUT VALLEY WATER DISTRICT

271 South Brea Canyon Road Walnut, California 91789

REGULAR BOARD MEETING Monday, May 21, 2018, 5:00 PM

AGENDA

NOTE: To comply with the Americans with Disabilities Act, if you need special assistance to participate in any Board meeting, please contact the General Manager’s office at least 4 hours prior to a Board meeting to inform the District of your needs and to determine if accommodation is feasible. Each item on the agenda shall be deemed to include any appropriate motion, resolution, or ordinance, to take action on any item. Materials related to an item on this agenda submitted after distribution of the agenda packet are available for public review during regular business hours at the District office, located at 271 S. Brea Canyon Road, Walnut, California.

1. Flag Salute

2. Roll Call: Mr. Ebenkamp_____ Mr. Hilden_____ Ms. Kwong_____ Ms. Lee_____ Dr. Wu _____

3. Public Comment President Ebenkamp The Presiding Officer of the Board of Directors may impose reasonable limitations on public comments to

assure an orderly and timely meeting.

A. Agenda Items - Any person desiring to address the Board of Directors on any Agenda item may do so at the time the item is considered on the Agenda by requesting the privilege of doing so at this time and stating the Agenda item to be addressed. At the time the item is discussed, those requesting to speak will be called to do so.

B. Non-Agenda Items - At this time the public shall have an opportunity to comment on any non-agenda item relevant to the jurisdiction of the District. Reasonable time limits on each topic and on each speaker are imposed in accordance with Board policy.

4. Additions to Agenda President Ebenkamp

A. Discussion B. Action Taken 5. Reorder of Agenda President Ebenkamp

A. Discussion B. Action Taken 6. Consider Approval of Consent Calendar (Items 1-5)

A. Discussion B. Action Taken (1) Minutes of the Regular Board Meeting held April 16, 2018 (pg 6) (2) Minutes of the Special Board Meeting held April 19, 2018 (pg 16) (3) Check Register (pg 19) (4) Employee Expense Reimbursement Report (pg 23) (5) Community Outreach Report (pg 24)

7. Consider Approval of Director Expense Reports

Provided are Expense Reports disclosing per diem requests for Director meeting attendance and an itemization of expenses incurred by the District on behalf of each Director. Consider Approval of Director Expense Reports (pg 29) A. Discussion B. Action Taken

8. Treasurer’s Report Mr. Teuber

Treasurer's Report (pg 39) A. District Statement of Revenues, Expenses, and Changes in Net Assets as of April 30, 2018 B. District Statement of Net Assets as of April 30, 2018 C. Summary of Cash and Investments as of April 30, 2018

(1) Discussion (2) Action Taken 3

May 21, 2018

COMMITTEE REPORTS

Standing Committee Reports (The Chair of each committee that has met will report to the full Board) 9. Engineering Committee Director Lee

A. Agreement for Landscape Maintenance (pg 45) (1) Discussion (2) Action Taken

10. Personnel Committee Director Hilden There are no items to report from the Personnel Committee at this time.

11. Finance Committee Director Wu

A. Review of District Investment Activities by Mr. Jayson Schmitt, Representative of Chandler Asset Management (1) Discussion (2) Action Taken

B. Claim for Damages - Mr. Frank D. Hayes (pg 47) (1) Discussion (2) Action Taken

C. Schedule Public Hearing for Standby Charge Assessment (pg 51) (1) Discussion (2) Action Taken

D. Local Agency Formation Commission FY 2018-19 Budget and Allocation of Net Operating Costs (information only) (pg 54)

E. Receive, Approve and File Investment Transactions Report for Month Ending April 30, 2018 (pg 60) (1) Discussion (2) Action Taken

F. Review of Revenue Bond Funds Held in Trust (information only) (pg 72)

12. Public Information/Community Relations/Legislative Action Committee Director Wu A. Update: Long-term Water Conservation - AB 1668 and SB 606 (pg 74)

(1) Discussion (2) Action Taken B. Adoption of Resolution No. 05-18-652 - Budget Trailer Bill: Safe and Affordable Drinking Water Act

(based on SB 623, Monning, "Public Goods Charge") (pg 77) (1) Discussion (2) Action Taken

C. ACWA's Request for Signatures on Comment Letter to the State Water Resources Control Board - 2017 Electronic Annual Report (pg 88) (1) Discussion (2) Action Taken

OTHER ITEMS

13. TVMWD/MWD Director Hilden

14. P-W-R Joint Water Line Commission Mr. Hitchman

A. P-W-R JWL Report for Water Purchases for the Month of April 2018 (pg 93) B. Other Items

15. Puente Basin Water Agency (PBWA) Director Lee 16. General Manager’s Report Mr. Hitchman

A. Follow-up Regarding Prior Board Actions (pg 94) B. District Activities Calendars for June, July and August 2018 (pg 96) C. Puente Basin Watermaster 2018-19 Final Operating Safe Yield (information only) (pg 99) D. Puente Basin Watermaster 2018-19 Tentative Budget (information only) (pg 123) E. Other Items

17. Water Supply and Conservation Mr. Hitchman

A. District Water Supply and Conservation Update (pg 126) B. Statewide Water Supply Conditions (pg 132)

18. Directors’ Oral Report All Directors

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19. Legal Reports Mr. Ciampa

Report on matters of interest or having an effect on the District 20. Board members and staff will be given an opportunity to request and suggest subjects for discussion at a future

meeting. 21. Board of Directors Business President Ebenkamp 22. Public Comment on Closed Session Matters

23. Adjourn to Closed Session

24. Closed Session

A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [§54956.9(d)(4)] Initiation of Litigation - Four Potential Cases

25. Reconvene in Open Session

A. Report of Action, if any, Taken in Closed Session

Adjournment in Memory of Dr. David K. Hall, Board Chair/President of the Regional Chamber of Commerce San Gabriel Valley, and member of the Mt. San Antonio College Board of Trustees, and Mr. Robert Sandwick,

long-time water industry professional, and father of District employee Ms. Sherry Shaw.

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Regular Board Meeting – April 16, 2018

MINUTES OF REGULAR MEETING OF THE BOARD OF DIRECTORS OF


April 16, 2018 At the Offices of the District

DIRECTORS PRESENT: Theodore L. Ebenkamp Edwin Hilden Scarlett Kwong Theresa Lee Allen Wu

DIRECTORS ABSENT:

None

STAFF PRESENT: Erik Hitchman, General Manager/Chief Engineer Brian Teuber, Director of Finance Sandy Olson, Director of Administrative Services Joshua Byerrum, Accounting Manager Sherry Shaw, Engineering Manager and Production Superintendent Donna DiLaura, Executive Secretary Jim Ciampa, Legal Counsel

The meeting was called to order at 4:30 p.m. with President Ebenkamp presiding. Guests and others in attendance: Three Valleys Municipal Water District Directors Joe Ruzicka and David DeJesus, and Three Valleys Municipal Water District Chief Financial Officer Mr. James Linthicum. Item 3: Public Comment ♦ There were no requests. (Item 3)

Item 4: Additions to the Agenda ♦ There were no requests. (Item 4)

Item 5: Reorder of Agenda ♦ The Board deferred Item 6 until the arrival of Mr. Gladbach. (Item 5) Item 6: Presentation of Retrospective Rate Premium Adjustment Stabilization Fund Refund: Association of California Water Agencies Joint Powers Insurance Authority ♦ Mr. Jerry Gladbach, Ms. Kathy Tiegs, and Mr. Andy Sells of ACWA/JPIA presented the District with

a $12,910 rebate check from the ACWA/JPIA Retrospective Premium Rate Adjustment Stabilization Fund. (Item 6-A)

Item 7: Public Comment on Closed Session ♦ There were no requests to comment on either open or closed session items. (Item 7) Item 8: Adjourn to Closed Session – 4:33 p.m. (Item 7) Item 9: Closed Session A. The Board met in closed session in accordance with Government Code [§54956.9(d)(4)] to discuss

anticipated litigation matters with Legal Counsel – Four Potential Cases. (Item 9-A) B. The Board met in closed session in accordance with Government Code [§54957] to discuss a threat to

public services or facilities. (Item 9-B)

Item 10: Reconvene in Open Session/Report of Action Taken in Closed Session – 5:08 p.m. A. The Board met in closed session in accordance with Government Code [§54956.9(d)(4)] to discuss four

anticipated litigation matters with Legal Counsel. The Board was briefed on the facts and circumstances of those four matters and no reportable action under the Brown Act was taken on these matters. (Item 10-A)

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B. The Board met in closed session in accordance with Government Code [§54957] to discuss a threat to public services or facilities. The Board was briefed on the facts and circumstances of the matter and no reportable action under the Brown Act was taken on the matter. (Item 10-B)

Item 11: Consider Approval of Consent Calendar ♦ The Board was asked to approve the Consent Calendar, including: the minutes of the regular Board

meeting held March 19, 2018, and the minutes of the special Board meeting held March 22, 2018, the check register, the WVWD Employee Expense Reimbursement Report, and the Community Outreach Update. (Items 11-1, 2, 3, 4, and 5) Motion No. 18-04-1218: Upon consideration thereof, it was moved by Director Hilden, seconded by

Director Wu and unanimously carried (5-0), to approve the Consent Calendar, including the minutes of the regular Board meeting held March 19, 2018, and special Board meeting held March 22, 2018, the check register, the WVWD Employee Expense Reimbursement Report, and the Community Outreach Update. (Items 11-1, 2, 3, 4 and 5)

President Ebenkamp indicated Motion No. 18-04-1218 was approved by a (5-0) vote

Item 12: Director Expense Reports ♦ The Board was asked to receive, approve, and file the Board member expense reports indicating per

diem requests for meeting attendance and the individual reports of additional expenses incurred by the District on behalf of each Director for events occurring during March 2018. (Item 12) Motion No. 18-04-1219: Upon consideration thereof, it was moved by Director Hilden, seconded by

Director Kwong and unanimously carried (5-0), to receive, approve, and file the Board member expense reports for meeting attendance and additional expenses incurred by the District on behalf of each Director for events occurring during the month of March 2018. (Item 12)


Item 13: Treasurer’s Report ♦ Mr. Teuber then presented the District’s Statement of Revenues, Expenses, and Change in Net Assets

as of March 31, 2018; the District’s Statement of Net Assets as of March 31, 2018; and the Summary of Cash and Investments as of March 31, 2018. (Items 13 A-C)

Motion No. 18-04-1220: Upon consideration thereof, it was moved by Director Wu, seconded by

Director Hilden and unanimously carried (5-0), to receive, approve, and file the District’s Statement of Revenues, Expenses, and Change in Net Assets as of March 31, 2018, the District’s Statement of Net Assets as of March 31, 2018, and the Summary of Cash and Investments as of March 31, 2018. (Item 13 A-C)


Committee Chair Reports Item 14: Engineering Committee – Director Lee ♦ Director Lee reported that all is working impeccably, and there are no Engineering Committee items

to come before the Board at this time. (Item 14-A)

Item 15: Personnel Committee – Director Hilden ♦ The Board was asked to consider adoption of District Election Services Resolution No. 04-18-649,

requesting the Los Angeles County Board of Supervisors to permit the Registrar/County Clerk to render election services for the November 6, 2018 District election (Divisions II and III), approve District payment of its pro-rata share of the election, to continue to have candidates pay statement printing, handling, and mailing costs at the time of filing, maintain the maximum 400-word limitation for

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campaign statements, and also direct staff to complete the election questionnaire upon receipt. (Item 15-A) Motion No. 18-04-1221: Upon consideration thereof, it was moved by Director Lee, seconded by

Director Hilden, and unanimously carried (5-0) to adopt Resolution No. 04-18-649 requesting the Los Angeles County Board of Supervisors to permit the Registrar/County Clerk to render election services for the November 6, 2018 District election (Divisions II and III), approve District payment of its pro-rata share of the election, to continue to have candidates pay statement printing, handling, and mailing costs at the time of filing, maintain the maximum 400-word limitation for campaign statements, and also direct staff to complete the election questionnaire upon receipt. (Item 15-A)

Yes: Ebenkamp, Hilden, Kwong, Lee and Wu No: None Absent: None Abstain: None Motion Passed (5-0)

President Ebenkamp indicated Motion No. 18-04-1221 was approved by a (5-0) roll call vote

♦ The Board was asked to consider approval of the revised salary chart to include ranges for the new Safety Sensitive (DOT Covered) Employees. Mr. Hitchman and Ms. Olson provided background information on this item and noted that the new employee category requirements and additional responsibilities warranted a review of the salary ranges for those positions (included in the Board packet). As a result, staff is recommending approval of the revised salary ranges effective January 1, 2018, as this is when the new requirements and responsibilities for Safety Sensitive (DOT) Employees went in to effect. (Items 15-B)

Motion No. 18-04-1222: Following discussion, and upon consideration thereof, it was moved by

Director Lee, seconded by Director Wu, and carried (3-2), with Directors Hilden and Kwong opposed, to approve the revised salary chart to include the new Safety Sensitive (DOT Covered) Employees effective April 1, 2018. Both Director Hilden and Director Kwong noted that they supported staff’s recommendation of January 1, 2018. (Items 15-B)


Item 16: Finance Committee – Director Wu ♦ The Board was asked to consider adoption of Resolution No. 04-18-650 authorizing signers for the

Local Agency Investment Fund. (Item 16-A)

Motion No. 18-04-1223: Upon consideration thereof, it was moved by Director Wu, seconded by Director Lee, and unanimously carried (5-0) to adopt Resolution No. 04-18-650 authorizing signers for the Local Agency Investment Fund. (Item 16-A)



♦ The Board was asked to consider adoption of Resolution No. 04-18-651 designating check signers for the District’s East West Bank Accounts. (Item 16-B)

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Motion No. 18-04-1224: Upon consideration thereof, it was moved by Director Hilden, seconded by Director Wu, and unanimously carried (5-0) to adopt Resolution No. 04-18-651 designating check signers for the District’s East West Bank accounts. (Item 16-B)



♦ The Board was asked to receive, approve, and file the March 2018 Consolidated Investment

Transactions Report included in the Board packet. (Item 16-C) Motion No. 18-04-1225: Upon consideration thereof, it was moved by Director Hilden, seconded by

Director Wu and unanimously carried (5-0), to receive, approve, and file the District’s Consolidated Investment Transactions Report for the period of March 1, 2018 through March 31, 2018. (Item 16-C)


♦ Mr. Teuber reviewed the Revenue Bond Funds Held in Trust and detailed disbursement of bond

proceeds report through March 31, 2018. As this was an informational item only, Board action was not needed. (Item 16-D)

Item 17: Public Information/Community Relations/Legislative Action Committee – Director Wu ♦ The Board was asked to consider support for Proposition 68 (SB 5) Parks, Environment and Water

Bond for the June 2018 Ballot. (Item 17-A)

Motion No. 18-04-1226: Upon consideration thereof, it was moved by Director Wu, seconded by Director Lee and carried (3-2), with Directors Ebenkamp and Hilden opposed, to support Proposition 68 (SB 5) Parks, Environment and Water Bond for the June 2018 Ballot. (Item17-A)


♦ The Board received an update on MS4/Stormwater. As this was an informational item only, Board

action was not needed. (Item 17-B) ♦ The Board received an update on the California WaterFix. As this was an informational item only,

Board action was not needed. (Item 17-C)

Other Items

Item 18: TVMWD/MWD – Director Hilden ♦ The Board received the TVMWD ‘Action Line’ reports for the Board meetings held on March 21, 2018,

and April 4, 2018. (Item 18-A) ♦ Director Hilden noted that the next TVMWD Leadership Breakfast will be held on May 31, 2018.

(Item 18-B) Item 19: The P-W-R Joint Water Line Commission ♦ Mr. Hitchman reviewed the P-W-R Joint Water Line Commission water use reports for the month of

March included in the Board packet. (Item 19) Item 20: Puente Basin Water Agency – Director Lee ♦ The Board was asked to ratify the Puente Basin Water Agency FY 2018-19 Budget, as approved by the

PBWA Commission at the April 5, 2018, Commission meeting. (Item 20)

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Motion No. 18-04-1227: Upon consideration thereof, it was moved by Director Lee, seconded by

Director Wu and unanimously carried (5-0), to receive, approve, and file the Puente Basin Water Agency FY 2018-19 Budget. (Item 20)


Item 21: General Manager’s Report ♦ The Board received a follow-up report on prior Board actions. (Item 21-A) ♦ The Board received the District’s activities calendars for May, June and July 2018. (Item 21-B) ♦ Mr. Hitchman proposed that the Board establish a standing schedule for monthly Committee meetings.

The Board agreed and directed staff to poll the Directors for preferred meeting dates. (Item 21-C) ♦ Ms. Olson reminded the Board that the City of Walnut will present the District with a Water Awareness

Proclamation at its April 25, 2018 City Council meeting, and the City of Diamond Bar will do the same at its May 1, 2018 City Council meeting. (21-D)

♦ The Board congratulated Mr. Gladbach and Mr. Ruzicka on their re-election to LAFCO. (21-E) Item 22: Water Supply and Drought ♦ The Board received a report on the District’s drought and water conservation outreach efforts. (Item

22-A) ♦ The Board received reports and graphs of the following items: District potable and recycled water use,

FY 2017-18 purchase water projections, conservation goal summary, 2017-18 climate summary, and 2018 monthly water consumption versus the 2013 baseline year. Staff made note that the District’s water usage for March 2018 was 34.73% lower than usage in March 2013. (Item 22-B)

♦ The Board viewed reports on California’s water supply and reservoir conditions as of April 10, 2018. (Item 22-C)

Item 23: Directors’ Oral Reports (NOTE: Board meeting Minutes provide written reports of Board meeting activities and committee meeting reports are given during the course of regular Board meeting activities. Directors include reports of their participation in non-expense/per diem paid community events as a matter of information.) (Item 23) ♦ In addition to the District committee and Board meetings, Director Wu reported that he attended an

event at the San Gabriel Basin Water Quality Authority, the Board sponsored District BBQ, MWD poster judging, and a webinar on a new Groundwater Recharge Assessment Tool.

♦ Director Hilden stated that, in addition to District committee and Board meetings previously reported, he attended the Salute to Heroes Prayer Breakfast, the Rotary Club of Walnut Valley’s Four-way Speech Contest, the Board sponsored District BBQ, two TVMWD Board meetings, an Ethics Training webinar, the Miss Diamond Bar Scholarship Pageant, the Grand Opening of Chipotle in Diamond Bar, and the City of Diamond Bar State of the City event.

♦ Director Kwong reported that she attended the Salute to Heroes Prayer Breakfast, a Chinese-American Elected Officials members briefing, the Board sponsored District BBQ, the Miss Diamond Bar Scholarship Pageant, MWD poster judging, an Ethics Training webinar, and the Grand Opening of Chipotle in Diamond Bar.

♦ In addition to attending District committee and Board meetings, Director Lee also attended the Salute to Heroes Prayer Breakfast, the Board sponsored District BBQ, the Miss Diamond Bar Scholarship Pageant, and the Walnut High School Baseball Team Sponsor Appreciation Day.

♦ Director Ebenkamp stated that, in addition to attending District committee and Board meetings, he also attended the Board sponsored District BBQ, two TVMWD Board meetings, and MWD poster judging.

Item 24: Legal Reports ♦ Mr. Ciampa thanked everyone for accommodating his limited availability for tonight’s meeting. He

also provided an update on SB 998 relative to recent amendments addressing protocols for disconnection of water service. As this was an informational item only, Board action was not needed. (Item 24)

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Item 25: Items for Future Discussion ♦ No requests were received. (Item 25)

Item 26: Board of Directors Business ♦ The Board was asked to consider revisions to Board appointments, replacing Michael Holmes with Erik

Hitchman as Secretary, and replacing Erik Hitchman with Joshua Byerrum as Second Assistant Treasurer. (Item 26-A)

Motion No. 18-04-1228: Upon consideration thereof, it was moved by Director Hilden, seconded by

Director Lee and unanimously carried (5-0), to approve revisions to Board appointments, replacing Michael Holmes with Erik Hitchman as Secretary, and replacing Erik Hitchman with Joshua Byerrum as Second Assistant Treasurer. (Item 26-A)


♦ The Board received an announcement from ACWA on the upcoming retirement of Timothy Quinn. As

this was an informational item only, Board action was not needed. (Item 26-B)

Adjournment at 6:17 p.m.

Motion No: 18-04-1229: Upon consideration thereof, it was moved by Director Hilden, seconded by Director Wu and unanimously carried (5-0), to adjourn the meeting.


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Special Board Meeting – April 19, 2018

MINUTES OF A SPECIAL MEETING OF THE BOARD OF DIRECTORS OF


April 19, 2018 At the Offices of the District

DIRECTORS PRESENT: Theodore L. Ebenkamp Edwin Hilden Scarlett Kwong Theresa Lee Allen Wu DIRECTORS ABSENT: None

STAFF PRESENT: Erik Hitchman, General Manager/Chief Engineer Brian Teuber, Director of Finance Sandy Olson, Director of Administrative Services Joshua Byerrum, Accounting Manager Donna DiLaura, Executive Secretary Jim Ciampa, Legal Counsel

The meeting was called to order at 4:03 p.m. with President Ebenkamp presiding. Guests and others in attendance: No guests were present. Item 3: Public Comment ♦ No comments were offered. (Item 3) Item 4: Fiscal Year 2018-19 Draft Budget Overview ♦ The Board received a presentation on the Fiscal Year 2018-19 Draft Budget. As this was an informational only

item, Board action was not needed. (Item 4)

Item 5: Consider Approval of Interim Organizational Chart ♦ The Board was asked to consider approval of the Interim Organizational Chart. The General Manager reviewed

the proposed changes to the Interim Organizational Chart, and noted that the Assistant General Manager (AGM) position is now vacant because of his appointment to General Manager. He also noted the addition of incentive positions for a Director of Engineering and Director of Operations, the new vacant Management Analyst position, and the existing vacant Engineering Technician position (currently being recruited). The General Manager reported that the total number of full-time equivalent employees would not change from the current total due to internal recruitments to fill the AGM and Directors of Engineering and Operations positions. The Management Analyst position will replace a vacant position created by filling the previously mentioned positions internally and a recent employee retirement. (Item 5)

Motion No. 18-04-1230: Upon consideration thereof, it was moved by Director Kwong, seconded by Director

Hilden and unanimously carried (5-0), to approve the Interim Organizational Chart as presented. (Item 5)

President Ebenkamp indicated Motion No. 18-04-1230 was approved by a (5-0) vote Item 6: Public Comment on Closed Session ♦ There were no requests to comment on closed session items. (Item 6) Item 7: Adjourn to Closed Session – 4:52 p.m. (Item 7) Item 8: Closed Session A. The Board met in closed session in accordance with Government Code [§54956.9(d)(4)] to discuss anticipated

litigation matters with Legal Counsel – Three Potential Cases. (Item 8)

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Special Board Meeting – April 19, 2018

Item 9: Reconvene in Open Session/Report of Action Taken in Closed Session –5:02 p.m. A. The Board met in closed session in accordance with Government Code [§54956.9(d)(4)] to discuss three

anticipated litigation matters with Legal Counsel. The Board was briefed on the facts and circumstances of those three matters and no reportable action under the Brown Act was taken on these matters. (Item 9)

Adjournment at 5:02 p.m.

Motion No: 18-04-1231: Upon consideration thereof, it was moved by Director Hilden, seconded by Director

Kwong and unanimously carried (5-0), to adjourn the meeting.


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WVWD – Staff Report

TO: Board of Directors FROM: General Manager SUBMITTED BY: Director of Administrative Services DATE: May 21, 2018 SUBJECT: Community Outreach Update

Action/Discussion Fiscal Impact Resolution Information Only

Recommendation For Board review and discussion. Background Information: Conservation and Education Outreach Activities: 1. Bill Insert – May’s bill insert reminds customers that the District is currently observing Stage

1 Water Conservation Measures including a lawn watering schedule. The second side reminds customers that they are able to call the District before leaving for vacation in order to make a payment arrangement for their water bill.

2. Facebook & Instagram – The most recent Facebook post displays some of the winning posters from the 2018 Poster Contest. Next, Instagram followers were reminded to turn off their sprinklers and irrigation systems during our most recent rain storm. Finally, our Twitter account has been tagged and mentioned in a variety of posts this month including tweets from the City of Walnut, Killian Elementary School, and Shelyn Elementary School.

3. District Website – For the month of April 2018, there were 4,353 visitors who viewed 13,412 pages on the District’s web site.

4. Newspaper/Advertising Outreach – The May/June edition of The Windmill ad encourages

readers to fix any sprinkler leaks in order to save 6,300 gallons of water each month.

5. Diamond Bar High School Baseball Team – A District conservation banner is being displayed at Diamond Bar High School’s baseball field for the duration of the 2018 season.

6. Water Education/Water Awareness Committee EduBucks – All five of our District’s EduBucks Grants have been completed for the 2017-2018 school year. Teachers from our District used their funds to conduct water education related projects including implementing drip irrigation systems in their school gardens, taking field trips to the Groundwater Replenishment System in Fountain Valley, and other in-class projects.

Facebook Instagram

Hydroponics EduBucks Grant Walnut High School

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7. Water Education/Water Awareness Committee Water Scholar Program – A Walnut High School student’s essay submission into the Water Scholar Program essay contest has been awarded a $1,500 scholarship which will be applied toward the student’s college tuition of choice.

8. High Efficiency Toilet Program – The 2018 High Efficiency Toilet program concluded on March 17 with the return of old toilets for recycling. Students from Diamond Bar High School assisted with administrative duties and traffic control. In total, 141 new toilets were distributed and 135 old toilets were recycled by the participants. Diamond Bar, Walnut, and Rowland High Schools will each be presented with a $675 check for their assistance with the program during the October Board meeting.

9. Walnut High School Career Day – On April 27, two staff members attended Walnut High

School’s Annual Career Day. During the event, they distributed job descriptions and other career-related information relative to the water industry.

10. City of Walnut – Representatives from the City of Walnut requested water conservation

brochures. These brochures will be displayed at a variety of the City’s sites.

11. Shelyn Elementary School – Mrs. Cindy Luber, a 2nd grade teacher from Castle Rock Elementary School, requested water conservation materials for her class. District staff created and delivered conservation goodie bags to the class which included conservation activity books, pencils, and shower timers.

12. AWWA’s Drinking Water Week – The District will be participating in AWWA’s Drinking Water

Week taking place May 6- 12. Events planned for this week include Facebook, Twitter, and Instagram posts as well as messages displayed on the District’s customer service lobby television and website.

Community Events: 13. Diamond Bar High School Health Occupation Students of America Organization – The District

advertised the conservation message and logo in the organization’s print ads.

14. Walnut-Diamond Bar Sheriff’s Booster Club – The District sponsored conservation messages on three tee signs at the Walnut-Diamond Bar Sheriff’s Booster Club’s Annual Golf Classic, which took place on April 2, 2018.

15. Diamond Bar Birthday Celebration – The City of Diamond Bar celebrated 29 years of incorporation and held its 29th Annual Birthday Party Celebration. The District staffed a Conservation booth and handed out conservation items to those in attendance. This event was held on Saturday, April 14, at Pantera Park.

16. Rowland Heights Buckboard Days Parade Committee – The District continues to send Jillian

Keller to the monthly Rowland Heights Buckboards Days Parade Committee’s monthly meetings. At the April 17 meeting, Jillian was assigned website duties for the parade’s site which have since been completed.

17. Diamond Bar Earth Day – The District joined Diamond Bar’s efforts in promoting their Annual Earth Day event on Saturday, April 21, at the South Coast AQMD by staffing a booth and distributing conservation-related materials to the public.

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18. Diamond Bar Friends of the Library Wine Soiree – In recognition of the Diamond Bar Friends of the Library 25th Annual Wine Soiree & Benefits Auction, the District has sponsored a full-page conservation ad for inclusion in their April 22nd event program.

19. Rotary Club of Walnut Valley – In light of the Rotary Club’s 25th Anniversary Celebration scheduled for April 28, the District will participate in the Gold Level sponsorship which includes a half-page advertisement in the event’s program.

20. Walnut High School Golf – Walnut High School’s annual golf tournament is scheduled for April 28. The District will join the golf team’s fundraising efforts by participating in a tee/hole sponsorship by placing a conservation sign at the designated hole.

21. Diamond Bar Community Foundation – The annual ‘Golf FORE the Kids’ event will be held

on May 14. As with last year’s event, the District will again sponsor two tee and hole signs with conservation related messages on the signs.

22. Southlands Christian School – Director Lee presented a certificate of recognition to the school during their Fine Arts Gala “A Night Under the Stars” which took place on April 20.

23. Heart of Hope Hand Bell Concert – The District presented a Conservation basket at the Heart

of Hope Hand Bell Concert which took place on May 6 at Diamond Bar High School. The District also donated 250 water drop stress balls for the event.

24. Chinese-American Elected Officials Association (CEO) – Director Kwong has been re-elected

to serve as the president of the Chinese-American Elected Officials Association. Director Kwong and other members of the Board will attend the 6th Annual Installation & Awards Dinner on Friday, June 1st and present certificates to members of the organization. The District is also participating in a sponsorship which includes a full page ad in the dinner program.

25. Diamond Bar Chinese American Association (DBCAA) – The District received an invitation to

be part of the DBCAA’s Annual Gala which is taking place on Sunday, June 3. The District is sponsoring a program ad and a Conservation booth. The District will present certificates to the past president and the incoming president as well as a congratulatory letter to the organization.

Water Awareness Month Activities and Events: 26. TVMWD Field Trips – The District once again hosted three field trips for the winning classes

of the 3rd, 4th, and 5th grade categories of the 2018 Poster Contest. Each class was given a tour of TVMWD then visited the District headquarters for a pizza party and a water cycle bracelet activity.

27. Poster Contest – The 2018 Poster Contest Awards Ceremony took place on May 2, 2018 at the District headquarters. The winners were presented with trophy plaques as well as other prizes. This event was well attended by the winners, their families, teachers, principals, and other local school officials.

28. High School Essay Contest – The essay contest winners were announced at the Poster and Essay Recognition Ceremony on May 2, 2018.

29. Water Awareness Month Luncheon – This year, in conjunction with our annual Water

Awareness Month barbecue, the District hosted a retirement luncheon for Michael Holmes

26

on Thursday, May 3, 2018, at 12:00 noon. Guests for this luncheon included local city, county, state, and federal elected representatives, and local water agency representatives. During the luncheon, Michael Holmes was presented with certificates and awards from elected officials, water industry professionals and other members of the community.

30. WVWD Public Safety Barbecue – Invitations have been sent out to all of our local fire and sheriff stations for our annual Public Safety barbecue scheduled for June 27, 2018, at noon in the District parking lot.

27

The following graph shows the activity of the District’s website over the last twelve months.

Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18

Page Views 17,889 19,798 17,766 16,003 18,584 16,635 16,058 16,701 16,331 17,951 15,379 18,631 13,412Visitors 4,774 5,322 5,170 5,536 5,997 5,211 5,220 5,521 5,369 5,902 5,162 6,008 4,353

01,0002,0003,0004,0005,0006,0007,0008,0009,000

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28


TREASURER’S REPORT May 21, 2018

1) District Statement of Revenues, Expenses, and Change in Net Assets as

of April 30, 2018

2) District Statement of Net Assets as of April 30, 2018

3) Summary of Cash Investments as of April 30, 2018

39

AprilActual Budget % of Budget

YTDActual

AnnualBudget % of Budget

Operating Revenues

Water Sales $2,778,276.11 $2,603,399.00 106.72% $28,996,993.55 $33,185,712.00 87.38%

Water Sales - Recycled 140,567.84 150,671.00 93.29% 1,549,475.92 1,693,664.00 91.49%

Hydroelectric Sales 3,242.36 917.00 353.58% 17,338.49 11,000.00 157.62%

Stand-by Charges 155,882.78 195,938.00 79.56% 736,516.66 825,000.00 89.27%

Total Operating Revenues 3,077,969.09 2,950,925.00 104.31% 31,300,324.62 35,715,376.00 87.64%

Operating Expenses

Operations 408,363.12 404,731.00 100.90% 4,190,421.28 5,346,570.00 78.38%

Engineering 64,331.30 69,441.00 92.64% 747,431.30 922,669.00 81.01%

Finance 175,614.30 199,834.00 87.88% 1,831,997.99 2,589,914.00 70.74%

Board of Directors/GM Office 89,301.10 107,894.00 82.77% 1,047,219.44 1,478,847.00 70.81%

Administrative Services 149,296.58 194,272.00 76.85% 1,794,123.59 2,507,793.00 71.54%

General Administration 88,142.73 93,616.00 94.15% 849,097.69 1,021,402.00 83.13%

Total Operating Expenses 975,049.13 1,069,788.00 91.14% 10,460,291.29 13,867,195.00 75.43%

Purchased Water & Related 1,952,078.77 1,525,047.00 128.00% 17,183,870.49 18,845,757.00 91.18%

Total Expenses 2,927,127.90 2,594,835.00 112.81% 27,644,161.78 32,712,952.00 84.51%

Income (Loss) From Operations 150,841.19 356,090.00 42.36% 3,656,162.84 3,002,424.00 121.77%

Nonoperating Revenues/(Expenses) 352,878.27 349,923.00 100.84% 1,463,129.28 1,005,200.00 145.56%

Income (Loss) Before Res. Rev & Deprec. 503,719.46 706,013.00 71.35% 5,119,292.12 4,007,624.00 127.74%

Restricted/Desig Rev & Other Exp. 60,704.63 0.00% 341,433.16 0.00%

Income (Loss) Before Depreciation 564,424.09 706,013.00 79.95% 5,460,725.28 4,007,624.00 136.26%

Depreciation & Amortization 440,675.74 0.00% 4,301,463.46 0.00%

Income Before Capital Contributions 123,748.35 706,013.00 17.53% 1,159,261.82 4,007,624.00 28.93%

Capital Contributions 21,995.25 0.00% 737,211.97 0.00%

Net Increase (Decrease) in Net Assets 145,743.60 706,013.00 20.64% 1,896,473.79 4,007,624.00 47.32%

Walnut Valley Water DistrictStatement of Revenues, Expenses & Changes in Net Assets

Summary by DivisionFor the Ten Months Ending Monday, April 30, 2018

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ASSETS

CURRENT ASSETS:

Cash & Investments - Unrestricted $27,849,678.28

Accounts Receivable:

Water 3,383,602.25

Taxes 46,626.47

Accrued Interest 128,677.34

Other 1,109,535.62

Standby Charges 35,587.19

Stored Water 3,575,179.80

Materials Inventory 550,432.42

Prepaid Expenses 393,727.95

TOTAL CURRENT ASSETS 37,073,047.32

RESTRICTED ASSETS

Cash & Investments - Restricted 9,372,938.52

Cash & Investments - Fiscal Agent 9,292,744.41

Investment in Joint Venture 14,649,343.62

TOTAL RESTRICTED ASSETS 33,315,026.55

OTHER ASSETS

Construction Advances (0.01)

TOTAL OTHER ASSETS (0.01)

CAPITAL ASSETS

Capital Assets 199,486,868.74

Construction in Progress 9,704,554.68

Less: Accumulated Depreciation (104,066,684.98)

NET CAPITAL ASSETS 105,124,738.44

TOTAL ASSETS 175,512,812.30

Walnut Valley Water DistrictStatement of Net AssetsMonday, April 30, 2018

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DEFERRED OUTLFOW OF RESOURCES

Deferred Pension Contributions 1,097,578.00

Deferred Outflow - Actuarial 2,359,902.00

TOTAL DEFERRED OUTFLOW OF RESOURCES 3,457,480.00

LIABILITIES & FUND EQUITY

CURRENT LIABILITIES

Accounts Payable (3,728,007.39)

Other Current Liabilities (553,341.63)

Current Portion of Long Term Debt (445,000.00)

Interest Payable (65,462.50)

TOTAL CURRENT LIABILITES (4,791,811.52)

RESTRICTED LIABILITIES

Accounts Payable (3,207.88)

Deposits (1,731,847.30)

Construction Advances (2,093,660.23)

TOTAL RESTRICTED LIABILITIES (3,828,715.41)

LONG TERM DEBT & RELATED

PBWA Revenue Bonds 2013 A (15,800,000.00)

Deferred Bond Preimum (2,240,497.10)

Current Portion of Long Term Debt 445,000.00

Net Pension Liability (11,587,515.00)

Other Long-term Debt 2,520,312.85

TOTAL LONG TERM DEBT & RELATED (26,662,699.25)

TOTAL LIABILITIES (35,283,226.18)


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DEFERRED INFLOW OF RESOURCES

Deferred Inflow of Resources - Actuarial (318,284.00)

Deferred Inflow of Resources - Additional Deferral (405,940.00)

TOTAL DEFERRED INFLOW OF RESOURCES (724,224.00)

NET ASSETS

Invested in Capital Assets, Net of Related Debt 105,124,738.44

Restricted 11,445,814.04

Unrestricted 26,392,289.64

TOTAL NET ASSETS 142,962,842.12

TOTAL NET ASSETS 142,962,842.12


43


TO: Board of Directors FROM: General Manager SUBMITTED BY: Assistant General Manager DATE: May 21, 2018 SUBJECT: Agreement for Landscape Maintenance

Action/Discussion

Fiscal Impact

Resolution

Information Only

Recommendation Authorize the General Manager to execute a new service agreement with Azteca Landscape to provide landscaping services five-year term, July 1, 2018 thru June 30, 2023, at a cost of $13,000 per month. Background From 2003 to 2013 the District contracted with Azteca Landscape to perform maintenance services at thirty-one of the District’s facilities. Over that 10-year term, Azteca provided excellent service, without a single price increase ($11,825 per month). In 2013, Azteca took over the landscape services for the District’s headquarters, Parker Canyon recycled reservoir, and the maintenance of a 10-foot fire break at Eastgate reservoir. In 2013, a new 5-year contract was approved, incorporating the additional facilities, at a total cost of $13,000 per month. Staff has had an excellent working relationship with Azteca, and they have done an excellent job in maintaining the District’s facilities. Azteca has a great understanding of each facility and staff has the highest level of confidence and trust in them accessing critical District facilities. As such, staff is recommending that the Board authorize the General Manager to execute a new service agreement with Azteca Landscape for five-year term, July 1, 2018 thru June 30, 2023, at a cost of $13,000 per month. Below is a list of District facilities that require landscaping services: 1. Arbor Ridge 12. Pathfinder 23. Pepperdale 2. Chestnut Hill 13. Ambushers 24. Walnut Leaf 3. Heidelberg 14. Ridge Line 25. N. Diamond Bar Blvd 4. J.P. Bourdet 15. Eldertree 26. Rapid View 5. Parker Canyon 16. Eastgate 27. Industry Well 6. Pioneer 17. Armitos 28. Lycoming – No Services 7. Snow Creek 18. Sylvan Glen 29. Colima 8. Terminal Storage 19. Diamond Bar Blvd. 30. Valley Blvd. Property 9. Brea Canyon Cut-off 20. Ridgecrest 31. Grand Ave. Property 10. Oakleaf Canyon 21. Fernhollow 32. Parker Canyon Recycle 11. Hillside 22. Fairway Well 33. WVWD District Offices Attachment • Scope of Work Spreadsheet

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X:\Bdmtgs\Board Docs-Staff Reports\2018\May\ENG 2018-05 Azteca Scope of Work rev1

Scope of Work - Azteca Landscape and Walnut Valley Water District

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WEEKLYAdjust sprinkler clocks X X X X X X X X X X X X X X X X X X X X X X X X X XWeed adjacent lot X XWeed gravel area X X X X X X X X X X X XEdge all planters X X X X X X X X X X X X X X X X X X XEdge around tree wells X X X X X X X X X X X X X XBlow down site X X X X X X X X X X X X X X X X X X X X X X X X XBlow down driveway X X X X X X X X X X X X X X X X X X X X X X X X X XBlow down sidewalks X X X X X X X X X X X X X X XBlow down street gutters X X X X X X X X X X X X X X X X X X X X X X XRake leaves from slope X X X X X X X X X X X X X X XHand weed planters X X X X X X X X X X X X X XRemove trash in planters X X X X X X X X X X X X X X X X X X X X XEdge/weed-eat driveway X X X X X X X X X X X X X X X XHand weed slopes X X X X X X XEdge around shrub wells X X X X X X X X X X X X X X X XBlow down "V" ditches X X X X X XWeed dirt areas X X X X X XRake around shrubs X X X X X X X X X X X X X X X XEdge ivy on wall XRake planters X X X X X X XMow grass X X X X X X X XEdge grass X X X X X XHand water planter X X XHose down driveway XBlow gravel area X X X X X X

EVERY 2 WEEKSPrune shrubs X X X X X X X X X X X X X X X X X X X X X X XRake trimmings X X X X X X X X X X X X X X X X X X X X X X XTrim "V" ditches X X X X X X X XBlow down "V" ditches X X X X X X X XRemove suckers from trees X X X X X X X X X X X X XTrim Air & Vac X X

MONTHLYTrim trees (minor) X X X X X X X X X X X X X X X X X X X X X X X X XWeed-eat 5' fence line X X X X X X X X XTest sprinklers X X X X X X X X X X X X X X X X X X X X X X X X X XTrim cypress trees XTrim shrubs X X X X X X X X X X X X X XWeed-eat fire break X X XWeed-eat adjacent dirt lot X XWeed-eat back slopes X X XWeed-eat back slopes XBlow down back driveway XTrim trees from fence X X X X X X X X X XClean "V" ditches X X X

EVERY 2 MONTHSFertilize X X X X X X X X X X X X X X X X X X X X X X X X X X

EVERY 4 MONTHSWeed-eat fire breaks XTrim hedge X X

EVERY 6 MONTHSChemical treat gravel area X X X X X X X X X X X X X X XChemical treat dirt area X X X X X X X X X X X X X XShape X-mas tree X X X

ANNUAL Prune roses X X X

46

WVWD – Staff Report TO: Board of Directors FROM: General Manager SUBMITTED BY: Director of Administrative Services DATE: May 21, 2018 SUBJECT: Claim for Damages – Mr. Frank D. Hayes


Recommendation That the Board review and discuss the claim received by Mr. Frank D. Hayes, and reject such claim, which seeks compensation for the expenses to repair damage to his vehicle allegedly caused by a water valve cover located near the intersection of Amar and Lemon, in the City of Walnut.

Background Information On April 23, 2018, the District received a claim from Mr. Frank D. Hayes seeking compensation in the amount of $768.49 for expenses paid to repair damage to his vehicle allegedly caused by a loose valve can lid located near the intersection of Amar and Lemon in the city of Walnut. Pursuant to staff’s review of this claim, it is determined that the alleged loose valve can lid belongs to Suburban Water Systems (SWS). Mr. Hayes has been advised of these findings, and was referred to SWS should he wish to file a claim with them. Staff recommends that the Board deny the claim seeking compensation in the amount of $768.49 for the expenses to repair damages to his vehicle resulting from a loose valve can lid. Attachments • Claim Form • Claimant’s photograph of damaged tire and rim • Site Photograph

47


TO: Board of Directors FROM: General Manager SUBMITTED BY: Assistant General Manager DATE: May 21, 2018 SUBJECT: Schedule Public Hearing for Standby Charge Assessment


Recommendation That the Board schedule a public hearing to be held during the regular June 18, 2018, Board meeting, to receive comments regarding the District’s Standby Charge Assessment. Background California Water District Law, commencing with Section 35470 of the California Water Code, authorizes the raising of money for District purposes by the levy of standby charges to holders of land to which water may be made available, whether the water is used or not. The District may use the proceeds of such charges for the construction of the District’s fire related storage requirements and its terminal storage facilities to procure alternate sources of supply, to defray the ordinary operation or maintenance expenses incurred in providing fire protection facilities, and for any other lawful District purpose. Assessments existing prior to the passage of Proposition 218 on November 5, 1996, are exempt from the procedures and approval process of Proposition 218, provided the assessments are not increased and are imposed exclusively to finance the capital costs or maintenance and operating expenses for water systems. The District’s standby charge has not changed since June of 1996 when it was decreased from $64 per acre to $56 per acre. The Los Angeles County Auditor-Controller requires the annual adoption of a resolution to place the District’s Standby Charges on the County’s property tax roll, which must be submitted to them in early August. Before adopting such a resolution, the District is required to hold a public hearing to receive and consider comments, protests, and/or objections, if any, to the standby charge. Notice of that hearing must be published in a newspaper of general circulation once a week for two consecutive weeks prior to the hearing. Staff proposes that the public hearing be held during the June 18, 2018, regular Board meeting, with adoption of a Resolution Establishing Water Standby Charges to Holders of Title to Land to be considered for approval at the July 16, 2018, regular Board meeting. Upon approval of this scheduling by the Board, staff will publish as required the enclosed Notice of Public Hearing two times: June 4 and June 11, in the San Gabriel Valley Tribune. A fiscal analysis to support the District’s Standby Charges is being prepared by Willdan Financial Services, will be provided for review at the June Finance Committee and Board meetings. The proposed schedule to implement the District’s standby charge for the current year is as follows:

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TASK DATE Schedule Public Hearing May 21, 2018 (Board

Meeting) Willdan to deliver copies of Engineer’s Report for Board, Public and Staff review By June 1, 2018

Publish Notice of Public Hearing for two consecutive weeks beginning June 4 and June 11, 2018

Hold Public Hearing Regarding Imposition of Standby Charge June 18, 2018 Board Meeting Consider Adoption of Resolution Establishing Water Standby Charges July 16, 2018 Board Meeting

Submit Assessments to Los Angeles County To meet the August 2018 deadline

Attachment • Draft Notice of Public Hearing

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WALNUT VALLEY WATER DISTRICT NOTICE OF PUBLIC HEARING FOR WATER STANDBY CHARGES

NOTICE IS HEREBY GIVEN, pursuant to California Government Code Sections 54984.4 and 54984.7, that the Board of Directors of Walnut Valley Water District (the “District”) will consider at a public hearing to be held at 5:00 p.m. on June 18, 2018, to establish a schedule of standby charges for properties within the District. The standby charge was first imposed in 1982 and has been maintained at its current level (as set forth below), since prior to November 5, 1996. No change from that current level is recommended.

The amount of the standby charge to be considered is Fifty-Six Dollars ($56.00)

per acre. The amount of the standby charge for one-fourth of an acre or less shall be considered at the flat rate of Fourteen Dollars ($14.00). The amount of the standby charge for a parcel larger than one-fourth of an acre and less than one acre shall be considered by prorating the charge on the basis of Fifty-Six Dollars ($56.00) per acre. A written report detailing the amount of, and the use for, the charges proposed is available for inspection at the District office located at the address set forth below.

The public hearing at which the standby charges will be considered will take

place at the District’s offices at 271 South Brea Canyon Road, Walnut, California. At the hearing, the District’s Board of Directors will hear and consider comments, protests, or objections, if any, to the standby charge from affected property owners. Following the public hearing, the Board of Director may take action on the standby charges.

Publish Dates: (June 4 and June 11) By: /S/ Erik Hitchman, District Secretary

DRAFT

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WVWD – Staff Report TO: Board of Directors FROM: General Manager SUBMITTED BY: Assistant General Manager DATE: May 21, 2018 SUBJECT: Local Agency Formation Commission FY 2018-19 Budget and Allocation of

Net Operating Costs

Action/Discussion Fiscal Impact Resolution Information Only Recommendation For information only. Background Information LAFCO’s key responsibilities include coordinating changes in local governmental boundaries, including annexations and detachments of territory, incorporations of cities, formations of special Districts, and consolidations, mergers, and dissolutions of districts, as well as reviewing ways to reorganize, simplify, and streamline governmental structure. In 1994, LAFCOs were given the authority to initiate proposals involving district consolidation, dissolution, establishment of subsidiary districts, mergers, and reorganizations (combinations of the above jurisdictional changes). The Commission is also tasked with developing and updating spheres of influence for each city and special district within the county. In the year 2000 the Governor signed into law AB 2838 (Hertzberg) which, among other things, changed the way the operations of the Local Agency Formation Commission (LAFCO) are financed. The bill requires that cities, counties, and special districts each contribute a proportionate share of the LAFCO annual budgeted expenses based on their total revenues as reported on the fiscal year State Controllers Report. At LAFCO’s public hearing on May 9, 2018, their budget for Fiscal Year 2018-2019 in the amount of $1,322,443, with $305,177 of that amount being assessed to special districts, was approved. A ten-year history of District payments to LAFCO is provided for your information in the table below.

Attachments • Proposed Budget FY 2018-19 • LAFCO Brochure

FiscalYear

Total LAFCO Budget

Special District Assessment

WVWD Assessment

WVWD % of Special District

Assessment2009-10 808,180 186,502 8,083 4.3%2010-11 664,145 153,263 6,876 4.5%2011-12 850,666 196,306 8,603 4.4%2012-13 850,666 196,306 7,675 3.9%2013-14 932,377 215,162 8,260 3.8%2014-15 1,161,843 268,116 10,991 4.1%2015-16 1,288,508 297,346 12,232 4.1%2016-17 1,322,443 305,177 14,550 4.8%2017-18 1,322,443 305,177 12,882 4.2%2018-19 1,322,443 305,177 TBD TBD

54

California Association ofLocal Agency Formation Commissions

1215 K Street, Suite 1650Sacramento, CA 95814

Phone 916-442-6536/Fax 916-442-6535www.calafco.org

An Introduction toLocal Agency Formation Commissions

CALAFCOThe California Association of LAFCos, or CALAFCO, was founded in 1971. CALAFCO serves as an organization dedicated to assisting member LAFCos with educational and technical resources that otherwise would not be available. The Association provides statewide coordination of LAFCo activities, serves as a resource to the Legislature and other bodies, and offers a structure for sharing information among the various LAFCos and other governmental agencies.

The Association is governed by a Board of Directors composed of sixteen (16) LAFCo Commissioners: four city members, four county members, four special district members, and four public members. For the purposes of electing Board Members, the State is divided into four (4) regions as follows: Northern, Central, Coastal and Southern. Each region elects four (4) Directors comprised of one city member, one county member, one public member, and one special district member. CALAFCO staff consists of a part-time Executive Director and part-time Administrator, Legal Counsel, CPA, and a volunteer Executive Officer and three (3) volunteer Deputy Executive Officers, each representing one of the four (4) regions. The membership of CALAFCO consists of all 58 LAFCos, as well as Associate Members from firms, agencies and organizations throughout California.

AUTHORITY (Continued)

Service ReviewsMunicipal Service Reviews (MSR) were added to LAFCo's mandate with the passage of the CKH Act in 2000. A service review is a comprehensive study designed to better inform LAFCo, local agencies, and the community about the provision of municipal services. Service reviews attempt to capture and analyze information about the governance structures and efficiencies of service providers, and to identify opportunities for greater coordination and cooperation between providers. The service review may be a prerequisite to a sphere of influence determination and may also lead a LAFCo to take other actions under its authority.

Out of Agency Service AgreementsCities and special districts are required to obtain LAFCo's approval prior to entering into contracts with private individuals or organizations to provide services outside of the agency's boundaries.

Adoption of Local PoliciesEach LAFCo may adopt local policies to appropriately administer the CKH Act in its county.

PUBLIC INVOLVEMENTCitizens are welcome and encouraged to attend regular LAFCo meetings and state their views during public hearings on proposals before the Commission. In addition, the meetings provide an excellent opportunity for citizens to familiarize themselves with the growth, development, and interjurisdictional issues facing their county. Copies of the minutes, meeting agenda, and staff reports are available on LAFCo websites or by contacting the county’s LAFCo office. What is LAFCo?

58

HISTORYAfter World War II, California experienced dramatic growth in population and economic development. With this boom came a demand for housing, jobs, and public services. To accommodate this demand, the state approved the formation of many new cities and special districts, often with little forethought as to the ultimate governance strutures in a given region. The lack of coordination and adequate planning led to a multitude of overlapping, ineffcient jurisdictional and service boundaries, and the premature conversion of California’s agricultural and open-space lands.

Recognizing this problem, in 1959, Governor Edmund G. Brown, Sr. appointed the Commission on Metropolitan Area Problems. This Commission's charge was to study and make recommendations on the "misuse of land resources" and the growing complexity of local governmental jurisdictions. This Commission's recommendations on local governmental reorganization were introduced in the Legislature in 1963, resulting in the creation of Local Agency Formation Commissions, or "LAFCos," operating in each county except San Francisco.

From 1963-1985, LAFCos administered a complicated series of statutory laws and three “statutory schemes: the Knox-Nisbet Act, the Municipal Organization Act (MORGA), and the District Reorganization Act. Confusion over the application of these laws led to a reform movement that produced the first consolidated LAFCo Act, the Cortese-Knox Local Government Reorganization Act of 1985. In 1997, a new call for reform in local government resulted in the formation, by the Legislature, of this Commission on Local Governance in the 21st Century. After many months canvassing the state, this Commission recommended changes to the laws governing LAFCos in its comprehensive report “Growth Within Bounds.” These recommendations became the foundation for the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act), an act that mandates greater independence for LAFCos and further clarifies their purpose and mission. Today, there is a LAFCo in each of California’s 58 counties.

OBJECTIVESTo Encourage the Orderly Formation of

cities and special districtsLAFCos review proposals for the formation of new Cities and Special Districts and for changes in the boundaries of existing Cities and Special Districts. There are 58 LAFCos working with nearly 3,500 governmental agencies (400+ Cities, and 3,000+ Special Districts). Agency boundaries are often unrelated to one another and sometimes overlap in in a seemingly random manner, often leading to higher service costs to the taxpayer and general confusion regarding service area boundaries. LAFCo decisions strive to balance the competing needs in California for efficient services, affordable housing, economic opportunity, and conservation of natural resources.

To Preserve Agricultural Land Resources

LAFCo must consider the effect that any proposal will produce on existing agricultural lands. By guiding development toward urban land and away from agricultural preserves, LAFCo assists with the preservation of our valuable agricultural resources.

To Discourage Urban Sprawl

Urban sprawl can best be described as irregular and disorganized growth occurring without apparent design or plan. This pattern of development is characterized by the inefficient delivery of urban services (police, fire, water, and sanitation) and the unnecessary loss of agricultural resources and open space lands. By discouraging sprawl, LAFCo limits the misuse of land resources and promotes a more efficient system of cities and special districts.

COMPOSITIONThe composition of a LAFCo varies from county to county. Nearly all LAFCos are composed of two members from the Board of Supervisors and two members from the city councils in that county. Many commissions also have two members from the independent special districts in that county. In turn, these members select a representative of the general public – an individual who is not seated on any elected body. For each category represented on LAFCo, there is an alternate member.

Alternate members may attend LAFCo meetings and participate in the discussion of items, but they only vote on items when a regular member from their category is absent. Some LAFCos, including Los Angeles, Sacramento, Santa Clara, Kern, and San Diego, through special legislation, have an additional seat on the Commission for a representative from the County’s major city.

Each agency that is eligible to have one of its officials seated on the Commission must contribute to the LAFCo budget. The amount of this contribution is determined by statute, and varies in each county.

RESPONSIBILITIESLAFCos are responsible for coordinating logical and timely changes in local governmental boundaries; conducting special studies that review ways to reorganize, simplify, and streamline governmental structure; and preparing a sphere of influence for each city and special district within each county. (see Sphere of Influence Studies section)

The Commission's efforts are directed toward seeing that services are provided efficiently and economically while agricultural and open-space lands are protected. To better inform itself and the community as it seeks to exercise its charge, each LAFCo must conduct service reviews to evaluate the provision of municipal services within each county.

AUTHORITYBoundary Changes

LAFCos regulate, through approval or denial, the boundary changes proposed by other public agencies or individuals. LAFCos do not have the power to initiate boundary changes on their own, except for proposals involving the dissolution or consolidation of special districts and the merging of subsidiary districts. Typical applicants might include:

Individual home owners requesting annexation to a sewer district due to a failing septic system.

Developers seeking annexation to cities in order to obtain urban services for new housing.

Cities wishing to annex pockets or "islands" of unincorporated land located within their borders in order to avoid duplication of services with the county.

Annexation initiated by a special district.

Sphere of Influence StudiesIn 1972, LAFCos were given the power to determine spheres of influence for all cities and special districts. A sphere of influence is a plan for the probable physical boundaries and service area of a local agency. Factors considered in a sphere of influence review focus on the current and future land use, the current and future need and capacity for service, and any relevant communities of interest. With the passage of the CKH Act, spheres for all cities and special districts are reviewed every five years as necessary.

The purpose of the sphere of influence is to ensure the provision of efficient services while discouraging urban sprawl and the premature conversion of agricultural and open space lands by preventing overlapping jurisdictions and duplication of services. Commissions cannot tell agencies what their planning goals should be. Rather, on a regional level, LAFCos coordinate the orderly development of a community through reconciling differences between agency plans so that the most efficient urban service arrangements are created for the benefit of area residents and property owners.

59

Monthly Account Statement

(213)630-6374

Amy Kung

Bank of New York Mellon Trust Company

CustodianChandler TeamFor questions about your account,

please call (800) 317-4747 or

Email [email protected]

Walnut Valley Water District Consolidated

April 1, 2018 through April 30, 2018

Information contained herein is confidential. We urge you to compare this statement to the one you receive from yourqualified custodian. Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing

source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

6225 Lusk Boulevard | San Diego, CA 92121 | Phone 800.317.4747 | Fax 858.546.3741 | www.chandlerasset.com

60

ACCOUNT SUMMARY

Beg. Valuesas of 3/31/18

End Valuesas of 4/30/18

Market Value 37,643,937 36,627,685Accrued Interest 129,962 128,677Total Market Value 37,773,899 36,756,363

Income Earned 48,054 48,757Cont/WD

Par 38,187,272 37,321,394Book Value 38,157,560 37,254,331Cost Value 38,145,607 37,240,271

TOP ISSUERS

Issuer % Portfolio

Government of United States 24.4 %

Federal Home Loan Bank 13.0 %

Federal National Mortgage Assoc 12.4 %

Bank Cash Account 11.3 %

Federal Home Loan Mortgage Corp 8.1 %

Federal Farm Credit Bank 6.2 %

Local Agency Investment Fund 3.8 %

Berkshire Hathaway 1.4 %

80.5 %

PORTFOLIO CHARACTERISTICS

Average Duration 2.00

Average Coupon 1.55 %

Average Purchase YTM 1.59 %

Average Market YTM 2.29 %

Average S&P/Moody Rating AA/Aa1

Average Final Maturity 2.10 yrs

Average Life 2.09 yrs

CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION

PERFORMANCE REVIEW

Total Rate of Return Current Latest Year Annualized SinceAs of 4/30/2018 Month 3 Months To Date 1 Yr 3 Yrs 5 Yrs 10 Yrs

Portfolio SummaryAs of 4/30/2018

Walnut Valley Water District ConsolidatedAccount #10076

Execution Time: 5/7/2018 6:49:22 AMChandler Asset Management - CONFIDENTIAL Page 161

ACCOUNT SUMMARY

Beg. Valuesas of 3/31/18

End Valuesas of 4/30/18

Market Value 31,275,734 31,078,291Accrued Interest 125,022 126,736Total Market Value 31,400,756 31,205,027

Income Earned 46,258 46,590Cont/WD -123,138

Par 31,819,070 31,772,000Book Value 31,789,358 31,704,937Cost Value 31,777,404 31,690,877

TOP ISSUERS

Issuer % Portfolio

Government of United States 28.7 %

Federal Home Loan Bank 15.3 %

Federal National Mortgage Assoc 14.7 %

Federal Home Loan Mortgage Corp 9.5 %

Federal Farm Credit Bank 7.3 %

Berkshire Hathaway 1.6 %

Bank of New York 1.6 %

Intl Bank Recon and Development 1.6 %

80.2 %

PORTFOLIO CHARACTERISTICS

Average Duration 2.36

Average Coupon 1.75 %

Average Purchase YTM 1.79 %

Average Market YTM 2.63 %

Average S&P/Moody Rating AA/Aa1

Average Final Maturity 2.47 yrs

Average Life 2.46 yrs

CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION

PERFORMANCE REVIEW

Total Rate of Return Current Latest Year Annualized SinceAs of 4/30/2018 Month 3 Months To Date 1 Yr 3 Yrs 5 Yrs 10 Yrs 7/31/2009 7/31/2009

Walnut Valley Water District -0.23 % -0.13 % -0.57 % -0.33 % 0.61 % 0.77 % N/A 1.37 % 12.65 %

ICE BAML 1-5 Yr US Treasury/Agency Index* -0.34 % -0.14 % -0.71 % -0.72 % 0.36 % 0.54 % N/A 1.13 % 10.34 %

*ICE BAML 1-3 Yr US Treasury Index to 8/31/10

Portfolio SummaryAs of 4/30/2018

Walnut Valley Water DistrictAccount #10074

Execution Time: 5/1/2018 9:35:41 PMChandler Asset Management - CONFIDENTIAL Page 162

Holdings ReportAs of 4/30/18


CUSIP Security Description Par Value/UnitsPurchase Date

Book YieldCost Value

Book ValueMkt PriceMkt YTM

Market ValueAccrued Int.

% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

AGENCY

3133ED2C5 FFCB Note1.95% Due 9/17/2018

600,000.00 03/15/20161.10 %

612,468.00601,898.19

99.981.99 %

599,895.601,430.00

1.64 %(2,002.59)

Aaa / AA+AAA

0.380.38

3133EFSJ7 FFCB Note1.3% Due 12/14/2018

675,000.00 12/29/20151.41 %

672,860.25674,550.26

99.412.26 %

671,028.303,339.38

1.83 %(3,521.96)

Aaa / AA+AAA

0.620.61

3133782M2 FHLB Note1.5% Due 3/8/2019

575,000.00 02/13/20151.45 %

576,190.25575,250.11

99.362.26 %

571,300.451,269.79

1.56 %(3,949.66)

Aaa / AA+AAA

0.850.84

3137EADG1 FHLMC Note1.75% Due 5/30/2019

575,000.00 Various1.73 %

575,369.38575,093.25

99.412.30 %

571,623.604,220.66

1.57 %(3,469.65)

Aaa / AA+AAA

1.081.06

3135G0ZE6 FNMA Note1.75% Due 6/20/2019

600,000.00 07/28/20141.80 %

598,680.00599,693.45

99.362.33 %

596,133.003,820.83

1.63 %(3,560.45)

Aaa / AA+AAA

1.141.11

3137EADK2 FHLMC Note1.25% Due 8/1/2019

600,000.00 09/05/20141.77 %

585,342.00596,253.52

98.602.39 %

591,619.201,875.00

1.61 %(4,634.32)

Aaa / AA+AAA

1.251.23

3135G0ZG1 FNMA Note1.75% Due 9/12/2019

575,000.00 Various1.86 %

571,960.88574,159.73

99.122.41 %

569,942.881,369.62

1.55 %(4,216.85)

Aaa / AA+AAA

1.371.34

3137EADM8 FHLMC Note1.25% Due 10/2/2019

600,000.00 12/08/20141.77 %

585,564.00595,738.18

98.342.44 %

590,058.60604.17

1.61 %(5,679.58)

Aaa / AA+AAA

1.421.40

3135G0A78 FNMA Note1.625% Due 1/21/2020

600,000.00 03/15/20161.41 %

604,698.00602,108.08

98.562.48 %

591,368.402,708.33

1.62 %(10,739.68)

Aaa / AA+AAA

1.731.68

313378J77 FHLB Note1.875% Due 3/13/2020

650,000.00 05/18/20161.26 %

664,885.00657,282.33

98.842.51 %

642,465.201,625.00

1.75 %(14,817.13)

Aaa / AA+NR

1.871.82

3137EADR7 FHLMC Note1.375% Due 5/1/2020

600,000.00 05/26/20151.61 %

593,323.20597,288.48

97.722.55 %

586,342.804,125.00

1.61 %(10,945.68)

Aaa / AA+AAA

2.011.94

313383HU8 FHLB Note1.75% Due 6/12/2020

500,000.00 06/23/20151.81 %

498,645.00499,422.91

98.322.57 %

491,606.503,378.47

1.35 %(7,816.41)

Aaa / AA+NR

2.122.05

3133EEW55 FFCB Note1.8% Due 6/15/2020

600,000.00 06/25/20151.82 %

599,424.00599,753.32

98.382.59 %

590,268.004,080.00

1.62 %(9,485.32)

Aaa / AA+AAA

2.132.05

3133EE5Z9 FFCB Note1.75% Due 8/4/2020

402,000.00 12/11/20151.67 %

403,515.54402,738.98

98.112.62 %

394,406.621,700.13

1.08 %(8,332.36)

Aaa / AA+AAA

2.272.19

3135G0F73 FNMA Note1.5% Due 11/30/2020

600,000.00 12/11/20151.72 %

593,622.00596,677.25

97.212.63 %

583,235.403,775.00

1.60 %(13,441.85)

Aaa / AA+AAA

2.592.49

3130A3UQ5 FHLB Note1.875% Due 12/11/2020

600,000.00 02/12/20161.30 %

616,098.00608,734.99

98.102.63 %

588,601.204,375.00

1.61 %(20,133.79)

Aaa / AA+NR

2.622.51

3135G0H55 FNMA Note1.875% Due 12/28/2020

600,000.00 02/12/20161.28 %

616,818.00609,199.27

98.062.63 %

588,387.003,843.75

1.61 %(20,812.27)

Aaa / AA+AAA

2.672.56

3130A7CV5 FHLB Note1.375% Due 2/18/2021

650,000.00 03/15/20161.64 %

642,018.00645,454.08

96.602.64 %

627,884.401,812.33

1.71 %(17,569.68)

Aaa / AA+AAA

2.812.71

313382K69 FHLB Note1.75% Due 3/12/2021

625,000.00 03/16/20161.68 %

627,225.00626,278.76

97.362.71 %

608,484.381,488.72

1.66 %(17,794.38)

Aaa / AA+AAA

2.872.76

3137EAEC9 FHLMC Note1.125% Due 8/12/2021

650,000.00 08/24/20161.30 %

644,559.50646,402.01

95.062.71 %

617,913.401,604.69

1.69 %(28,488.61)

Aaa / AA+AAA

3.293.18








% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

AGENCY

3135G0N82 FNMA Note1.25% Due 8/17/2021

625,000.00 09/28/20161.28 %

624,075.00624,375.38

95.352.73 %

595,942.501,605.90

1.63 %(28,432.88)

Aaa / AA+AAA

3.303.19

3135G0S38 FNMA Note2% Due 1/5/2022

550,000.00 01/31/20172.01 %

549,802.00549,851.97

97.242.79 %

534,827.153,544.44

1.46 %(15,024.82)

Aaa / AA+AAA

3.693.49

313378CR0 FHLB Note2.25% Due 3/11/2022

800,000.00 Various1.96 %

810,717.00808,532.89

97.912.83 %

783,256.002,500.00

2.14 %(25,276.89)

Aaa / AA+NR

3.873.66

3135G0T94 FNMA Note2.375% Due 1/19/2023

500,000.00 04/11/20182.70 %

492,845.00492,922.99

97.812.87 %

489,054.503,232.64

1.34 %(3,868.49)

Aaa / AA+AAA

4.734.40

313382AX1 FHLB Note2.125% Due 3/10/2023

450,000.00 04/11/20182.66 %

439,069.50439,185.33

96.602.88 %

434,685.601,354.69

1.19 %(4,499.73)

Aaa / AA+AAA

4.864.56

Total Agency 14,802,000.00 1.66 %14,799,774.5014,798,845.71 2.55 %

14,510,330.6864,683.54

39.65 %(288,515.03)

Aaa / AA+AAA

2.272.18

CASH

90CASH$00 Cash Custodial Cash Account 4,155,662.73 Various0.00 %

4,155,662.734,155,662.73

1.000.00 %

4,155,662.730.00

11.31 %0.00

NR / NRNR

0.000.00

Total Cash 4,155,662.73 N/A4,155,662.734,155,662.73 0.00 %

4,155,662.730.00

11.31 %0.00

NR / NRNR

0.000.00

LAIF

90LAIF$00 Local Agency Investment Fund State Pool

1,393,731.23 Various1.70 %

1,393,731.231,393,731.23

1.001.70 %

1,393,731.231,941.35

3.80 %0.00

NR / NRNR

0.000.00

Total LAIF 1,393,731.23 1.70 %1,393,731.231,393,731.23 1.70 %

1,393,731.231,941.35

3.80 %0.00

NR / NRNR

0.000.00

SUPRANATIONAL

459058FY4 Intl. Bank Recon & Development Note2% Due 1/26/2022

500,000.00 09/21/20171.95 %

501,010.00500,871.00

96.962.86 %

484,791.502,638.89

1.33 %(16,079.50)

Aaa / NRAAA

3.753.55

Total Supranational 500,000.00 1.95 %501,010.00500,871.00 2.86 %

484,791.502,638.89

1.33 %(16,079.50)

Aaa / NRAAA

3.753.55

US CORPORATE

747525AG8 Qualcomm Inc Note1.4% Due 5/18/2018

360,000.00 05/26/20151.47 %

359,312.40359,989.24

99.962.12 %

359,870.762,254.00

0.99 %(118.48)

A1 / ANR

0.050.05

084664BY6 Berkshire Hathaway Note2% Due 8/15/2018

500,000.00 08/12/20131.98 %

500,380.00500,022.06

99.962.12 %

499,820.002,111.11

1.37 %(202.06)

Aa2 / AAA+

0.290.29

02665WAC5 American Honda Finance Note2.125% Due 10/10/2018

360,000.00 03/17/20151.73 %

364,906.80360,611.46

99.912.32 %

359,690.40446.25

0.98 %(921.06)

A2 / A+NR

0.450.44

36962G7G3 General Electric Capital Corp Note2.3% Due 1/14/2019

400,000.00 03/19/20141.97 %

405,928.00400,870.47

99.722.70 %

398,894.802,734.44

1.09 %(1,975.67)

A2 / AA+

0.710.69








% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

US CORPORATE

30231GAP7 Exxon Mobil Corp Note1.708% Due 3/1/2019

415,000.00 03/16/20161.63 %

415,917.15415,258.64

99.502.31 %

412,945.341,181.37

1.13 %(2,313.30)

Aaa / AA+NR

0.840.82

91159HHH6 US Bancorp Callable Note Cont 3/25/20192.2% Due 4/25/2019

360,000.00 09/05/20142.04 %

362,516.40360,498.12

99.652.57 %

358,725.24132.00

0.98 %(1,772.88)

A1 / A+AA-

0.990.97

89236TBP9 Toyota Motor Credit Corp Note2.125% Due 7/18/2019

350,000.00 12/11/20151.97 %

351,844.50350,623.27

99.332.69 %

347,653.252,127.95

0.95 %(2,970.02)

Aa3 / AA-A

1.221.18

68389XAX3 Oracle Corp Note2.25% Due 10/8/2019

400,000.00 05/18/20161.47 %

410,192.00404,339.66

99.542.57 %

398,179.20575.00

1.08 %(6,160.46)

A1 / AA-A+

1.441.40

40428HPN6 HSBC USA Inc Note2.375% Due 11/13/2019

250,000.00 02/12/20162.59 %

248,102.50249,219.58

98.953.08 %

247,375.252,770.83

0.68 %(1,844.33)

A2 / AAA-

1.541.48

713448DC9 Pepsico Inc. Callable Note Cont 9/14/20202.15% Due 10/14/2020

325,000.00 10/20/20152.08 %

326,010.75325,490.11

98.432.84 %

319,910.18329.97

0.87 %(5,579.93)

A1 / A+A

2.462.29

857477AV5 State Street Bank Note1.95% Due 5/19/2021

400,000.00 05/18/20162.01 %

398,884.00399,317.66

96.823.05 %

387,262.803,510.00

1.06 %(12,054.86)

A1 / AAA-

3.052.91

69371RN44 Paccar Financial Corp Note1.65% Due 8/11/2021

400,000.00 05/09/20172.40 %

388,012.00390,746.38

95.173.21 %

380,686.801,466.67

1.04 %(10,059.58)

A1 / A+NR

3.283.14

06406RAA5 Bank of NY Mellon Corp Callable Note Cont 1/7/20222.6% Due 2/7/2022

500,000.00 06/20/20172.35 %

505,305.00504,307.31

97.683.26 %

488,403.003,033.33

1.34 %(15,904.31)

A1 / AAA-

3.783.53

69353RFE3 PNC Bank Callable Note Cont 6/28/20222.45% Due 7/28/2022

500,000.00 07/26/20172.42 %

500,650.00500,549.75

96.593.32 %

482,950.003,164.58

1.32 %(17,599.75)

A2 / AA+

4.253.96

037833DC1 Apple Inc Callable Note Cont 08/12/20222.1% Due 9/12/2022

500,000.00 09/21/20172.29 %

495,540.00496,076.28

95.813.13 %

479,057.501,429.17

1.31 %(17,018.78)

Aa1 / AA+NR

4.374.11

24422ERT8 John Deere Capital Corp Note2.8% Due 1/27/2023

450,000.00 04/11/20183.17 %

442,606.50442,682.55

97.523.37 %

438,823.353,290.00

1.20 %(3,859.20)

A2 / AA

4.754.36

44932HAH6 IBM Credit Corp Note3% Due 2/6/2023

350,000.00 02/27/20183.09 %

348,565.00348,613.55

98.313.39 %

344,090.602,479.17

0.94 %(4,522.95)

A1 / A+A+

4.784.37

911312BK1 UPS Callable Note Cont 3/1/20232.5% Due 4/1/2023

450,000.00 04/11/20183.11 %

437,413.50437,538.39

96.453.29 %

434,034.90937.50

1.18 %(3,503.49)

A1 / A+NR

4.924.57

Total US Corporate 7,270,000.00 2.22 %7,262,086.507,246,754.48 2.86 %

7,138,373.3733,973.34

19.51 %(108,381.11)

A1 / A+A+

2.492.34

US TREASURY

912828VQ0 US Treasury Note1.375% Due 7/31/2018

500,000.00 05/12/20141.40 %

499,571.99499,974.71

99.881.83 %

499,410.501,709.25

1.36 %(564.21)

Aaa / AA+AAA

0.250.25

912828ST8 US Treasury Note1.25% Due 4/30/2019

600,000.00 Various1.64 %

589,115.29597,780.92

98.982.29 %

593,859.6020.39

1.62 %(3,921.32)

Aaa / AA+AAA

1.000.99

912828UF5 US Treasury Note1.125% Due 12/31/2019

600,000.00 03/15/20161.33 %

595,408.26597,978.04

97.852.45 %

587,109.602,256.22

1.60 %(10,868.44)

Aaa / AA+AAA

1.671.63








% of Port.Gain/Loss

Moody/S&P Fitch

MaturityDuration

US TREASURY

912828UV0 US Treasury Note1.125% Due 3/31/2020

600,000.00 05/26/20151.58 %

587,298.89594,974.12

97.462.49 %

584,788.80571.72

1.59 %(10,185.32)

Aaa / AA+AAA

1.921.88

912828VA5 US Treasury Note1.125% Due 4/30/2020

600,000.00 03/15/20161.41 %

593,298.89596,747.47

97.322.51 %

583,921.8018.75

1.59 %(12,825.67)

Aaa / AA+AAA

2.001.96

912828XM7 US Treasury Note1.625% Due 7/31/2020

600,000.00 12/11/20151.54 %

602,228.57601,083.96

98.002.54 %

588,023.402,424.03

1.61 %(13,060.56)

Aaa / AA+AAA

2.252.19

912828L65 US Treasury Note1.375% Due 9/30/2020

300,000.00 10/20/20151.38 %

299,872.10299,937.40

97.212.57 %

291,644.40349.39

0.79 %(8,293.00)

Aaa / AA+AAA

2.422.35

912828WC0 US Treasury Note1.75% Due 10/31/2020

675,000.00 12/29/20151.78 %

674,158.51674,564.73

97.992.59 %

661,421.0332.10

1.80 %(13,143.70)

Aaa / AA+AAA

2.512.43

912828Q78 US Treasury Note1.375% Due 4/30/2021

700,000.00 11/15/20161.64 %

691,963.28694,587.82

96.382.64 %

674,625.0026.30

1.84 %(19,962.82)

Aaa / AA+AAA

3.002.91

912828S27 US Treasury Note1.125% Due 6/30/2021

625,000.00 09/28/20161.13 %

624,953.27624,968.86

95.342.67 %

595,898.752,350.22

1.63 %(29,070.11)

Aaa / AA+AAA

3.173.07

912828T34 US Treasury Note1.125% Due 9/30/2021

575,000.00 12/13/20161.87 %

555,393.53561,025.77

94.912.69 %

545,710.65547.90

1.49 %(15,315.12)

Aaa / AA+AAA

3.423.31

912828G53 US Treasury Note1.875% Due 11/30/2021

575,000.00 12/13/20161.91 %

574,125.95574,368.58

97.242.69 %

559,142.654,502.06

1.53 %(15,225.93)

Aaa / AA+AAA

3.593.41

912828U81 US Treasury Note2% Due 12/31/2021

600,000.00 01/31/20171.90 %

602,931.70602,189.79

97.532.71 %

585,163.804,011.05

1.60 %(17,025.99)

Aaa / AA+AAA

3.673.48

912828V72 US Treasury Note1.875% Due 1/31/2022

600,000.00 04/04/20171.88 %

599,978.57599,983.31

97.022.71 %

582,140.402,796.96

1.59 %(17,842.91)

Aaa / AA+AAA

3.763.58

912828XW5 US Treasury Note1.75% Due 6/30/2022

650,000.00 Various1.81 %

648,238.51648,455.25

96.142.74 %

624,888.553,802.14

1.71 %(23,566.70)

Aaa / AA+AAA

4.173.96

9128283C2 US Treasury Note2% Due 10/31/2022

400,000.00 02/27/20182.60 %

389,468.75389,845.53

96.762.77 %

387,046.8021.74

1.05 %(2,798.73)

Aaa / AA+AAA

4.514.26

Total US Treasury 9,200,000.00 1.66 %9,128,006.069,158,466.26 2.56 %

8,944,795.7325,440.22

24.40 %(213,670.53)

Aaa / AA+AAA

2.702.60

TOTAL PORTFOLIO 37,321,393.96 1.59 %37,240,271.0237,254,331.41 2.29 %

36,627,685.24128,677.34

100.00 %(626,646.17)

Aa1 / AAAAA

2.102.00

TOTAL MARKET VALUE PLUS ACCRUED 36,756,362.58


Transaction Ledger3/31/18 Thru 4/30/18


Transaction Type

Settlement Date CUSIP Quantity Security Description Price

Acq/DispYield Amount

Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS

Purchase 04/02/2018 60934N807 3,750.00 Federated Investors Govt Oblig Fund Inst. 1.000 1.28 % 3,750.00 0.00 3,750.00 0.00

Purchase 04/03/2018 60934N807 33.58 Federated Investors Govt Oblig Fund Inst. 1.000 1.28 % 33.58 0.00 33.58 0.00



Purchase 04/12/2018 313382AX1 450,000.00 FHLB Note2.125% Due 3/10/2023

97.571 2.66 % 439,069.50 850.00 439,919.50 0.00

Purchase 04/12/2018 3135G0T94 500,000.00 FNMA Note2.375% Due 1/19/2023

98.569 2.70 % 492,845.00 2,605.90 495,450.90 0.00


Purchase 04/13/2018 24422ERT8 450,000.00 John Deere Capital Corp Note2.8% Due 1/27/2023

98.357 3.17 % 442,606.50 2,660.00 445,266.50 0.00

Purchase 04/13/2018 911312BK1 450,000.00 UPS Callable Note Cont 3/1/20232.5% Due 4/1/2023

97.203 3.11 % 437,413.50 375.00 437,788.50 0.00


Purchase 04/15/2018 90LAIF$00 5,166.04 Local Agency Investment Fund State Pool 1.000 1.57 % 5,166.04 0.00 5,166.04 0.00



Subtotal 2,489,302.16 2,451,236.66 6,490.90 2,457,727.56 0.00

TOTAL ACQUISITIONS 2,489,302.16 2,451,236.66 6,490.90 2,457,727.56 0.00

DISPOSITIONS

Sale 04/12/2018 3135G0YT4 425,000.00 FNMA Note1.625% Due 11/27/2018

99.748 2.03 % 423,929.00 2,589.84 426,518.84 -1,342.53

Sale 04/12/2018 880591EQ1 575,000.00 Tennessee Valley Authority Note1.75% Due 10/15/2018

99.860 2.03 % 574,195.00 4,947.40 579,142.40 -1,032.91

Sale 04/12/2018 912828SH4 525,000.00 US Treasury Note1.375% Due 2/28/2019

99.352 2.12 % 521,595.70 843.50 522,439.20 -2,736.61

Sale 04/13/2018 17275RAR3 315,000.00 Cisco Systems Note2.125% Due 3/1/2019

99.748 2.41 % 314,206.20 780.94 314,987.14 -1,045.83

Sale 04/13/2018 60934N807 568,067.86 Federated Investors Govt Oblig Fund Inst. 1.000 1.28 % 568,067.86 0.00 568,067.86 0.00

Subtotal 2,408,067.86 2,401,993.76 9,161.68 2,411,155.44 -6,157.88

Security Withdrawal

04/02/2018 60934N807 60,819.87 Federated Investors Govt Oblig Fund Inst. 1.000 60,819.87 0.00 60,819.87 0.00


Transaction Ledger3/31/18 Thru 4/30/18


Transaction Type

Settlement Date CUSIP Quantity Security Description Price

Acq/DispYield Amount

Interest Pur/Sold Total Amount Gain/Loss

DISPOSITIONS

Security Withdrawal

04/30/2018 60934N807 62,318.26 Federated Investors Govt Oblig Fund Inst. 1.000 62,318.26 0.00 62,318.26 0.00

Security Withdrawal

04/30/2018 90CASH$00 823,974.66 Cash Custodial Cash Account 1.000 823,974.66 0.00 823,974.66 0.00

Subtotal 947,112.79 947,112.79 0.00 947,112.79 0.00

TOTAL DISPOSITIONS 3,355,180.65 3,349,106.55 9,161.68 3,358,268.23 -6,157.88

OTHER TRANSACTIONS

Interest 04/02/2018 3137EADM8 600,000.00 FHLMC Note1.25% Due 10/2/2019

0.000 3,750.00 0.00 3,750.00 0.00

Interest 04/08/2018 68389XAX3 400,000.00 Oracle Corp Note2.25% Due 10/8/2019

0.000 4,500.00 0.00 4,500.00 0.00

Interest 04/10/2018 02665WAC5 360,000.00 American Honda Finance Note2.125% Due 10/10/2018

0.000 3,825.00 0.00 3,825.00 0.00

Interest 04/14/2018 713448DC9 325,000.00 Pepsico Inc. Callable Note Cont 9/14/20202.15% Due 10/14/2020

0.000 3,493.75 0.00 3,493.75 0.00

Interest 04/25/2018 91159HHH6 360,000.00 US Bancorp Callable Note Cont 3/25/20192.2% Due 4/25/2019

0.000 3,960.00 0.00 3,960.00 0.00

Interest 04/30/2018 9128283C2 400,000.00 US Treasury Note2% Due 10/31/2022

0.000 4,000.00 0.00 4,000.00 0.00

Interest 04/30/2018 912828Q78 700,000.00 US Treasury Note1.375% Due 4/30/2021

0.000 4,812.50 0.00 4,812.50 0.00

Interest 04/30/2018 912828ST8 600,000.00 US Treasury Note1.25% Due 4/30/2019

0.000 3,750.00 0.00 3,750.00 0.00

Interest 04/30/2018 912828VA5 600,000.00 US Treasury Note1.125% Due 4/30/2020

0.000 3,375.00 0.00 3,375.00 0.00

Interest 04/30/2018 912828WC0 675,000.00 US Treasury Note1.75% Due 10/31/2020

0.000 5,906.25 0.00 5,906.25 0.00

Subtotal 5,020,000.00 41,372.50 0.00 41,372.50 0.00

Dividend 04/03/2018 60934N807 0.00 Federated Investors Govt Oblig Fund Inst. 0.000 33.58 0.00 33.58 0.00

Dividend 04/15/2018 90LAIF$00 124,904,097.74 Local Agency Investment Fund State Pool 0.000 5,166.04 0.00 5,166.04 0.00

Subtotal 124,904,097.74 5,199.62 0.00 5,199.62 0.00

TOTAL OTHER TRANSACTIONS 129,924,097.74 46,572.12 0.00 46,572.12 0.00


Category Standard CommentLocal Agency Bonds No Limitation CompliesTreasury Issues No Limitation CompliesAgency Issues No Limitation CompliesBanker’s Acceptances 40% maximum; 5% max per issuer; 180 days max maturity Complies Commercial Paper 25% maximum; 5% max per issuer; 270 days max maturity; A-1 or

equivalent rated; A- rated issuerComplies

Negotiable Certificates of Deposit 30% maximum; 5 years max maturity; 5% max per issuer Complies Repurchase Agreements No limitation; 1-year max maturity Complies Reverse Repurchase Agreements 20% maximum; 92 days max maturity Complies Medium Term Notes 30% maximum; 5% max per issuer; 5 years max maturity; A-rated

or betterComplies

Money Marker Mutual Funds 20% maximum; AAA by two NRSROs or SEC registered Investment Adviser; 10% max per fund

Complies

Mortgage Pass-throughs, CMOs and Asset Backed Securities

20% maximum; AA-rated issue; A-rated issuer Complies

Supranational Securities 30% maximum; 10% max per issuer; IBRD, IADB or IFC Only; AA- rated or better

Complies

Local Agency Investment Fund - LAIF Maximum program limitation CompliesProhibited Securities Inverse floaters; Ranges notes, Interest-only strips from mortgaged

backed securities; Zero interest accrual securitiesComplies

Maximum Per Issuer Exposure No more than 5% in any single issuer except US government and agencies

Complies

Maximum maturity 5 years Complies

Walnut Valley Water DistrictApril 30, 2018

COMPLIANCE WITH INVESTMENT POLICY Assets managed by Chandler Asset Management are in full compliance with state law and with the District's investment policy.

69

Porfolio Index

PeriodNet of 10.9 bps

annual fee*ML 1-5 Year US

Government1 month -0.24% -0.34%3 months -0.16% -0.14%Year to Date -0.60% -0.71%Lastest 12 Months -0.44% -0.72%

Inception Date 7/31/2009 7/31/2009Since Inception 11.58% 10.34%Annualized Since Inception 1.26% 1.13%

Net of Fees Performance Reportas of 04/30/2018

Walnut Valley Water District

70

Walnut Valley Water DistrictSummary of Cash and Investments

by Reserve FundApril 30, 2018

Category 1General Account 4,762,164.11$ 12.75%

4,762,164.11$ 12.75%

Category 2Operating Reserve 4,854,000.00$ 13.01%Replacement 11,736,228.76$ 31.45%Capital Improvement 1,467,472.04$ 3.93%Rate Stabilization 1,541,603.39$ 4.13%B/G Catastrophic Ins 500,000.00$ 1.34%Employee Liabilities 2,119,755.15$ 5.68%Project Reserve 967,231.99$ 2.59%

23,186,291.33$ 62.13%

Category 3Customer/Developer Deposits 3,787,126.67$ 10.15%

3,787,126.67$ 10.15%

Category 4ASC 1,331,649.20$ 3.57%Badillo/Grand-Maintenance 289,628.34$ 0.78%RCC 2,663,570.51$ 7.14%RCC/Tres Hermanos 328,871.43$ 0.88%WSC 972,092.37$ 2.60%

5,585,811.85$ 14.97%

Total 37,321,393.96$ 100.00%

Note: Effective 6/30/12, the Badillo Grand Catastrophic Insurance Fund was reclassified from a Restricted Fund to a Designated Fund.

Category 2 - These funds, although not legally or externally restricted, have been reserved pursuant to the Board’s desire to provide a stable and

equitable rate structure. All interest earned related to these funds is retained by each designated fund.

Category 3 - These funds have legal or external restrictions. TheseRestricted Funds can only be used for the specific purposes established forthe fund. All interest earned is retained in the General Fund.

Category 4 - These funds have legal or external restrictions. All interestearned must be retained by each Restricted Fund and can only be used forthe specific purposes established for the fund.

ALLOCATION OF CASH AND INVESTMENTSUnrestricted

Category 1 - These are funds that accumulate from day-to-day operationsand represent the net equity in the District’s General Fund. All interestearned is retained in the General Fund.

Restricted Reserves

Designated12.75%

31.45%

3.93%4.13%

1.34%

5.68%

2.59%

13.01%

10.15%

3.57% 0.78%

7.14% 0.88%2.60%

`

71

Bond Proceeds 19,940,487.80$

Disbursements:Cost of IssuanceFieldmann, Rolapp & Associates (Financial Advisors) (26,270.57)$ Hawkins, Delafield & Wood, LLP. (Bond Counsel) (45,000.00) Union Bank, N.A. (Trustee) (3,708.00) Standard & Poor's Rating Services (Credit Rating) (17,000.00) Image Master (Official Statement) (3,158.31) Hawkins Delafield & Wood (Bond Counsel) (1,743.31)

(96,880.19) ProjectsPuente Basin Water Agency - Pomona Basin 1 (948,462.70) Puente Basin Water Agency - LHHCWD Project 1 (350,566.00)

Puente Basin Water Agency - CDWC Project 1 (4,090,549.30)

Administration Headquarters1 (840,854.37)

Water Rights - Central Basin (3,630,907.50)

(9,861,339.87) Substitute ProjectsAce Nogales Grade Separation (P#03-2820)2 (706,545.61) Ridgeline Pump Station Modifications (P#12-3267) 3 (221,195.68) 30 kw Diesel Portable Generator (P#13-3290)3 (39,490.70)

(967,231.99)

Interest Income 277,708.66

Ending Balance of Bond Funds Held in Trust 9,292,744.41$

1 Related to projects identified in the Official Statement dated March 21, 2013

2 Substitute project approved by the Board on April 18, 2013. Reimbursed amounts will be placed in the Project Reserve

3 Substitute projects approved by the Board on September 16, 2013. Reimbursed amounts will be placed in the Project Reserve

Walnut Valley Water DistrictRevenue Bond Funds Held in Trust - Union Bank

April 30, 2018Life to Date

72

Beginning Balance of Bonds Funds Held in Trust 9,260,855.37$

Receipts:

Interest Income 31,889.04

Disbursements:

-$

Ending Balance of Bond Funds Held in Trust 9,292,744.41$


Revenue Bond Funds Held in Trust - Union Bank

April 30, 2018

73

Click here to view it in your browser.

LEGISLATION | CONSERVATION & DROUGHTMay 15, 2018

LongTerm Conservation Bills AB 1668 and SB 606 Expected to Reach Governor’s DeskWith a final agreement reached in the both the Senate and Assembly, longterm conservation bills AB 1668 by Assembly

Member Laura Friedman (DGlendale) and SB 606 by Sen. Robert Hertzberg (DVan Nuys) yesterday were passed in their

respective houses and sent back to the houses of origin for concurrence.

AB 1668 requires the State Water Resources Control Board and the California Department of Water Resources to adopt water

efficiency regulations, outlines requirements for water suppliers, and specifies penalties for violations. SB 606 contains

distinct provisions on water shortage planning and water loss reporting for urban wholesale water suppliers.

Both bills are expected to pass out of their houses of origin and be sent to Gov. Jerry Brown for signature. Each bill’s

enactment is contingent upon the enactment of the other.

Background

Last year, after months of intense advocacy by ACWA, its members, and other stakeholders, AB 1668 (Friedman) and SB 606

(Hertzberg) became twoyear bills when they were held in the Legislature.

As directed by the ACWA State Legislative Committee following its Sept. 11 special meeting, ACWA continued to hold an

opposeunlessamended position on both bills throughout fall 2017 and into 2018. Under this position, ACWA staff continued

to advocate for amendments to key provisions related to improving water use efficiency and enhancing drought planning and

preparation.

This year, after extensive advocacy by ACWA and its member agencies both AB 1668 and SB 606 were amended in April and

May to improve the bills. Some ACWA members felt that the amendments were positive enough that their agencies could

move to a support position on the bills. Other ACWA member agencies were disappointed that more progress could not be

made in key areas – such as potable reuse credit – and continue to oppose the bills. With ACWA members on both sides of

the bills, the association is not requesting a veto from the governor.

74

May 4, 2018

VIA FACSIMILE – 916-651-4909 The Honorable Nancy Skinner California State Senate State Capitol, Room 2059 Sacramento, California 95814

Re: Proposed Amendment to SB 606 – Water Code Section 10609.20 – Recycled Water Incentive

Dear Senator Skinner:

We are a water supplier that provides water service to a population of approximately 100,000 in eastern Los Angeles County. We have reviewed SB 606 and are concerned with how the recycled water bonus incentive in Water Code Section 10609.20(d) is being calculated in instances where an urban retail water supplier is not directly replenishing groundwater with potable reuse water. This issue is particularly relevant to several adjudicated basins in Southern California, including the Central Basin, Six Basins and Main San Gabriel Basin where we have projects that are producing water or are in the planning stages. In those basins, the use of potable reuse water for groundwater replenishment is already occurring or is planned to occur in the future. In these basins, it is therefore imperative that local investments to beneficially use potable reuse water be incentivized and that the water suppliers in those areas be credited for their direct and indirect investments to further the use of potable reuse water.

However, in these basins, individual water suppliers typically do not themselves

pursue groundwater replenishment activities. Rather, court-appointed watermasters (in the Main San Gabriel and Antelope Valley Basins) and a dedicated water replenishment district (the Water Replenishment District of Southern California in the Central and West Coast Basins) undertake such potable reuse water replenishment activities and pass on those costs to the ultimate producers of the groundwater through assessments and charges. Thus, we believe an amendment to Section 10609.20(d) is necessary to address this issue and ensure that water producers in those basins receive adequate credit for the potable reuse water they produce, pay for and serve to their customers.

A proposed amendment to subdivision (d) of Water Code Section 10609.20 has been

prepared that addresses that issue. A redlined draft of that amendment is attached to this letter. The concept under this draft amendment is that an urban water supplier in a groundwater basin where a local agency (i.e., a water replenishment district) or court-appointed watermaster uses potable reuse water to replenish the basin receives a potable reuse bonus incentive to the extent of that supplier’s proportionate groundwater production from the basin in relation to the amount of potable reuse water that is used for replenishment of the basin. Under the current provisions of SB 606, the bonus incentive is limited to ten

75

Hon. Nancy Skinner May 4, 2018 Page 2

percent (10%) and the enclosed amendment does not change that cap, although we believe an increase of that cap to at least thirty percent (30%) would be appropriate, and we offer that for your consideration.

Thank you for your consideration of the enclosed amendments, which we believe address an important issue necessary to further promote and incentivize the use of potable reuse water for groundwater replenishment.

WALNUT VALLEY WATER DISTRICT Erik Hitchman General Manager/Chief Engineer Enclosure

cc: Senator Robert M. Hertzberg (via facsimile) (916) 651-4918 Senator Ed Hernandez (via facsimile) (916) 651-4022 Senator Josh Newman (via facsimile) (916) 651-4929 Assembly Member Ian Calderon (via facsimile) (916) 319-2157 Assembly Member Phillip Chen (via facsimile) (916) 319-2155 Ms. Whitnie Wiley, Senior Legislative Advocate, Association of California Water Agencies (via [email protected]) Mr. Bob Reeb, Reeb Government Relations, LLC (via [email protected])

76

mailto:[email protected]


TO: Board of Directors FROM: General Manager DATE: May 21, 2018 SUBJECT: Adoption of Resolution No. 05-18-652 Budget Trailer Bill: Safe and Affordable

Drinking Water Act (based on SB 623, Monning, “Public Goods Charge”)

Action/Discussion

Fiscal Impact

Resolution

Information Only

Recommendation That the Board adopt the proposed Resolution No. 05-18-652 to Oppose Unless Amended Senate Bill (SB) 623 and corresponding budget trailer bill which will impose a first-ever “Drinking Water Tax.” in California. Background A proposal to impose a first-ever tax on drinking water in California is being advanced in the legislature through SB 623 (Monning), a two-year bill introduced in the 2017 legislative session, and a 2018 Brown Administration budget trailer bill related to safe drinking water. Governor Brown’s budget trailer bill, which is modeled after SB 623, seeks to establish a statewide tax on residential and business water bills in California to help fund safe drinking water solutions in certain disadvantaged communities in the state. If passed, this bill would levy California’s first-ever statewide tax on water. Residential water bills would be assessed a $.95 per month tax and business water bills would see up to a $10 per month increase. The bill would essentially place the District in the role of a tax collector on the State’s behalf and the monies collected from the tax will be sent to Sacramento and not likely to provide any benefit to the District nor our customers. Although local agencies, such as the District, are firmly committed to providing a safe and reliable water supply and agree with the goal of assisting disadvantaged communities that do not have safe drinking water, adding a tax on drinking water, which is essential to life, works against the essential mission of keeping water bills affordable for the customers we serve. Although the proposed tax is currently just a modest amount, if this tax is successful it is highly likely that future taxes for other purposes will be levied on water to be collected by the local agencies. The Association of California Water Agencies (ACWA) and numerous water agencies throughout the state are working diligently with the Brown Administration and the legislature to express concerns regarding the proposed water tax as well propose other funding alternatives to assist disadvantaged communities with helping to ensure a safe and reliable water supply. In addition, efforts are also being made to educate lawmakers at all levels of governance and the general public about this issue so all Californians are made aware of the new tax that will be imposed unless other alternatives are adopted. It is therefore recommended that the District adopt the proposed resolution to join the coalition of efforts to both express concern and educate others about adopting the possibility and impacts of adopting a statewide tax on water. Attachments • Draft Resolution No. 05-18-652 • Drinking Water Tax Fact Sheet • Funding Alternatives to the Proposed Tax on Drinking Water

77

RESOLUTION NO. 05-18-652

RESOLUTION OF THE BOARD OF DIRECTORS OF WALNUT VALLEY WATER DISTRICT OPPOSE UNLESS AMENDED – SB 623

AND BUDGET TRAILER BILL

WHEREAS, A proposed tax on drinking water is being advanced through SB 623 by Sen. William Monning (D-Carmel), a two-year bill introduced in 2017, and a 2018 Brown Administration budget trailer bill related to safe drinking water; and

WHEREAS, the water community agrees with the intent of the proposed legislation which is intended to fill gaps in funding to assist disadvantaged communities that lack access to safe drinking water; and

WHEREAS, drinking water is essential to life; and

WHEREAS, adding a tax on drinking water works against the common goal of keeping water bills affordable for Walnut Valley Water District customers; and

WHEREAS, the legislation would set a dangerous precedent and open the door to additional taxes on water in the future; and

WHEREAS, the new law would turn Walnut Valley Water District into a tax collector for the state of California, requiring additional staff to manage and therefore adding costs to our customers; and

WHEREAS, there are more appropriate funding sources that could be used to address this serious issue, including ongoing federal safe drinking water funds, voter-approved general obligation bond funds, the assessments related to nitrates in groundwater proposed in the budget trailer bill and SB 623 and state general fund dollars; and

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of Walnut Valley Water District formally opposes-unless-amended SB 623 and the budget trailer bill proposing a tax on drinking water.

PASSED, APPROVED AND ADOPTED THIS 21ST DAY OF MAY, 2018 AYES: NOES: ABSENT: ABSTAIN: __________________________ President ATTEST: __________________________ Secretary

78

Association of California Water Agencies www.acwa.com

May 2018

FAQs on Proposal to Tax Californians’ Drinking Water

A proposal attempting to establish California’s first-ever statewide drinking water tax is

currently being advanced in a Brown Administration budget trailer bill. (It was originally

proposed in 2017 in SB 623 by Sen. William Monning (D-Carmel), which is now a two-year bill.)

The proposal is being billed by supporters as a way to address a lack of access to safe drinking

water for some rural, disadvantaged communities. Supporters of the drinking water tax believe

a new tax levied on California homes and businesses is the best way to solve this problem.

However, the Association of California Water Agencies (ACWA) is currently leading a large

coalition of business organizations, cities and water agencies which strongly oppose the

proposed a tax on Californian’s drinking water. While the coalition agrees with the goal of

assisting disadvantaged communities without safe drinking water, it believes a statewide

drinking water tax is not the right approach to funding safe drinking water solutions. Instead,

ACWA is proposing a package of funding solutions that would not require a new tax.

Here are some frequently asked questions on the issue:

Q: Why do some disadvantaged communities lack access to safe drinking water?

A: The vast majority of Californians have access to safe drinking water. However, there are

some rural disadvantaged communities in California with water sources that have been

impaired by contaminants such as nitrates and arsenic. In some areas these contaminants are

naturally occurring, in other areas it is a result of water pollution. Nonetheless, for some low-

income communities, treatment solutions are financially out of reach. This is a serious public

health and social issue that must be addressed.

79

Association of California Water Agencies www.acwa.com

Q: What does the Brown Administration trailer bill propose?

A: The Brown Administration budget trailer bill, which was modeled after SB 623, seeks to

establish a statewide tax on residential and business water bills in California to help fund safe

drinking water solutions in certain areas of the state.

If passed, the bill would levy California’s first-ever statewide tax on water. Residential water

bills would be assessed a $0.95/month tax, and business water bills would see up to a

$10/month increase. Individuals that do not meet a minimum income requirement would be

exempt from paying the tax. Thousands of local water agencies would be required to collect

that tax and send all of it to Sacramento for distribution to the communities in certain areas of

the State that have the problem.

Q: That doesn’t seem like a lot of money. Why oppose the tax?

A: Local public water agencies are committed to providing safe and reliable water and agree

with the goal of assisting disadvantaged communities without safe drinking water but oppose

the tax on drinking water for several reasons.

First, the state should not tax something that is essential to life, such as water and food. Also,

the public is concerned that the cost of living in California is already too high.

Additionally, a tax on drinking water would work against the goal of keeping water affordable

for Californians. This new law would turn thousands of local water agencies into tax collectors

for the state of California.

What’s more is the budget trailer bill isn’t the only proposal to tax water that is being

considered at the state level. Other state agencies are also discussing plans to tax water to fund

a number of other program areas. The budget trailer bill would set the precedent for such

additional taxes.

Q: Will the taxes I pay help my community?

A: It’s possible, however, it is not guaranteed. Communities that have safe drinking water

would not receive any benefit from the tax they pay. The money raised through the tax would

go to Sacramento to a fund to be distributed by the State Water Resources Control Board to

communities that do have the problem.

80

ACWA is a statewide association of public agencies whose more than 440 members are responsible for

about 90% of the water delivered in California. For more information, visit www.acwa.com.

Q: How do California residents feel about the proposed drinking water tax?

A: Tulchin Research recently conducted a statewide poll showing that 73% of likely voters

oppose a new tax on drinking water, both initially and even after learning how the funds were

intended to be spent.

Additionally, 74% would prefer using existing funding sources rather than establishing a new tax

on drinking water.

Q: What other solutions are being proposed?

A: ACWA and a large coalition of business organizations, cities, and water agencies are

advancing a more appropriate funding packaged comprised of ongoing federal funds from the

Safe Drinking Water State Revolving Fund (SRF), voter-approved general obligation bonds, the

agricultural assessments related to nitrates in groundwater that are proposed in the budget

trailer bill and SB 623 and a modest amount of general fund dollars (less than 1/10th of 1

percent of the state’s general fund). ACWA and the coalition have also developed additional

funding solutions, such as the creation of an irrevocable trust. The Governor and the

Legislature can solve this problem without imposing a state tax on water.

###

81

https://tulchinresearch.com/

Updated: May 7, 2018

Funding Alternatives to the Proposed Tax on Drinking Water

Introduction The Association of California Water Agencies (ACWA)-led “Oppose-Unless-Amended” coalition agrees on the intent of SB 623 (Monning) and the Administration’s budget trailer bill, which would establish a fund to assist those who do not have access to safe drinking water. The proposed tax on drinking water, however, is not the right solution. The following are credible funding alternatives to the proposed tax on drinking water and a tool to help improve safe drinking water. Funding Alternatives

1. Current “Oppose Unless Amended” Coalition Funding Proposal

The first alternative to the proposed drinking water tax is the Safe Drinking Water Funding Package, which is the current funding proposal by the coalition. This funding package is comprised of ongoing federal safe drinking water funds, general obligation bond funds, the assessments related to nitrates in groundwater proposed in the budget trailer bill and SB 623, and a limited amount of state general fund dollars. (Attachment 1)

2. Safe and Affordable Drinking Water Trust The creation of an irrevocable trust is the second alternative. The trust would be held for the sole purpose of providing funding for safe and affordable drinking water. (Attachment 2)

3. Lease Revenue Bonds for Safe Drinking Water The third alternative is lease revenue bonds issued for safe drinking water. (Attachment 3)

4. Cap and Trade Allocation for Safe Drinking Water The fourth alternative is to allocate a percentage of Cap and Trade funding via continuous appropriation for safe drinking water. (Attachment 4)

Other Tools

1. Governance Solution AB 2050 (Caballero, 2018), the Small System Water Authority Act of 2018, would propose a local solution for consolidation of non-compliant public water systems based on regional governance and administration.

Contact: Cindy Tuck, ACWA, [email protected], (916) 441-4545

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Updated: May 7, 2018 Attachment 1

------------------------------------------

1 $81 million is estimated SDW SRF Total for California for 2018. Part of this would go to capital costs for disadvantaged communities 2 For both safe drinking water and clean water 3 For safe drinking water 4 State Water Board’s estimate for annual non-nitrate O&M costs for public water systems

Funding Alternative #1 to the Proposed Tax on Drinking Water

Safe Drinking Water Funding Package

Funding Source Funding Type Funding Amount

Safe Drinking Water State Revolving Funding

(Federal)

Capital Part of $81 million1

General Obligation Bonds Capital

Proposition 68 $250 million2

and/or

Water Supply/Quality Bond: $500 million3

Nitrate Assessment

Nitrate: • Replacement Water • Point of Use Treatment • Point of Entry Treatment

Approximately

$30 million per year

BUDGET TRAILER BILL / SB 623 (Monning)

General Fund Operation and

Maintenance for Public Water Systems

Approximately

$34.44 million per year4

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Funding Alternative #2 to the

Proposed Tax on Drinking Water in the Budget Trailer Bill

Irrevocable Safe and Affordable Drinking Water Trust The establishment of an Irrevocable Safe and Affordable Drinking Water Trust is a viable alternative to a tax on drinking water because it could provide a stable and perpetual source of funding. The Irrevocable Safe and Affordable Drinking Water Trust could provide a targeted amount of revenue each year into perpetuity to fund safe drinking water solutions for disadvantaged communities and low-income residents. For example, the targeted annual funding generated from the trust could be $50 million per year. In general, an irrevocable trust is a mechanism into which an entity or person (the grantor) places assets for the benefit of a designated beneficiary. Once the grantor places the assets into an irrevocable trust, the assets cannot be removed. Instead, the trust assets, which comprise the trust’s principal, are managed by a trustee who invests the principal and make distributions from the trust for the benefit of the beneficiary. Trustees have fiduciary duties, responsibilities and obligations to trust beneficiaries. One type of irrevocable trust is a charitable trust. A charitable trust is a trust designed to advance a charitable or governmental purpose. In the case of the Irrevocable Safe and Affordable Drinking Water Trust, the trust would be created as an irrevocable charitable trust designed to advance the governmental purpose of providing a continual source of funding for drinking water solutions for disadvantaged communities and low-income residents which currently do not have access to safe drinking water. The primary purpose of the Irrevocable Safe and Affordable Drinking Water Trust would be to provide a perpetual source of funding of at least $50 million dollars each year to the Safe and Affordable Drinking Water Fund. How the Irrevocable Trust Would Work:

1) The Irrevocable Safe and Affordable Drinking Water Trust Fund would be established in the State Treasury and be designated as the fund which would hold the funds placed into the Irrevocable Safe and Affordable Drinking Water Trust.

2) To generate $50 million per year, the one-time sum of $725 million would be irrevocably transferred in Fiscal Year 2018-19 from the General Fund to the Irrevocable Safe and Affordable Drinking Water Trust Commission (the Commission) for deposit in the Irrevocable Safe and Affordable Drinking Water Trust Fund. This funding would serve as the trust’s principal. (The $725 million amount is based on an assumption of a 6.5 percent annual rate of return.)

84

3) The Commission would serve as the trustee for the trust and would consist of 3

members and would be comprised of the State Treasurer, the Lieutenant Governor and the State Controller.

4) The Commission would invest the trust principal. If the net income earned by the trust during the previous fiscal year is less than or equal to $50 million, the trustee would deposit the entire value of the net income into the Safe and Affordable Drinking Water Fund for the benefit of the trust’s beneficiary.

5) If the net income earned by the trust during the previous fiscal year was greater than

$50 million, the trustee would deposit $50 million into the Safe and Affordable Drinking Water Fund and would split the remaining portion of the net income between the Safe and Affordable Drinking Water Fund and the trust principal. Increasing the size of the trust principal would enable the trust to generate more money annually for transfer to the Safe and Affordable Drinking Water Fund.

6) The trustee and others would be statutorily restricted from drawing down the trust principal.

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Lease Revenue Bonds for Safe Drinking Water During the height of the budget crisis in 2008, the Legislature authorized the issuance of Lease Revenue Bonds through AB 900 to pay for a variety of costs related to the building of new prisons. A Lease Revenue Bond (LRB) can be generally described as a loan made to the State that is repaid by revenue generated by the project. Under AB 900, the state envisioned that the Department of Public Works would design and build the prison and incur the debt, and the Department of Corrections would generate the "revenue" to repay the debt. In the case of AB 900, the "revenue" was a transfer of money between two government agencies, and the money came from the General Fund. Based on a presentation provided by the Treasurer’s office on their website, the issuer of an LRB – in this case the State - covenants to appropriate annual lease payments from the General Fund to meet the lease obligations. In this proposal, there would be a commitment of the new revenue from the agricultural taxes proposed in the bill, and revenue would ultimately be deposited in the General Fund. The financial instrument would be structured as lease revenue bonds or “certificates of participation” (“COPs”) that are not subject to constitutional debt limits per a lease exception. Unlike General Obligation bonds, no voter approval of the bond issuance is required. Of course, the disadvantage is that the debt payments compete with other General Fund priorities. These types of bonds are often used for projects of general community benefit and to indirectly leverage a General Fund revenue stream. These bonds are often used to provide “credit enhancement” for less credit-worthy borrowing for desired “risk sharing.” Under the LRB alternative financing concept, the State Water Resources Control Board would ask the Board of Public Works to issue Revenue Bonds up to an amount to be determined. The proceeds from the bonds could be used to fund operation and maintenance costs. Capital projects could be constructed with the use of ongoing federal funds and General Obligation bond funding. The debt for the bonds would be securitized by the ongoing cash flow from the agricultural taxes in the budget trailer bill along with a one-time appropriation of General Fund money into a special account –the ultimate guarantor would be the General Fund. All of the funds would be continuously appropriated to pay off the debt obligations. By the issuance of the LRBs that would be securitized with the already-proposed agricultural tax revenues, this approach ensures that the money would only be spent for the desired purpose.

86




Cap-and-Trade Allocation for Safe Drinking Water In 2017, the Legislature passed, and Governor Brown signed into law, AB 398 (Garcia) which extended the State’s authority to operate a Cap-and-Trade program through 2030. AB 398 passed by a two-thirds vote which was significant in the context of Proposition 26 requirements. The Cap-and-Trade program generates revenue annually from the sale of allowances to entities which emit greenhouse gas (GHG) emissions and which need the allowances to continue to emit GHG emissions. By reducing the number of allowances issued over time, the State limits the ability of emission sources to continue emitting. The Legislative Analyst’s Office (LAO) has estimated that the program will bring in anywhere from $2 to $7 billion annually between 2018 and 2030. The Governor’s Proposed Budget for Fiscal Year 2018-19 includes a $2.8 billion Cap-and-Trade expenditure plan. $1.3 billion of this amount is “discretionary” spending which is not subject to continuous appropriation. A small portion of this revenue could be appropriated with a majority vote to fund drinking water solutions for disadvantaged communities and low-incomes residents who do not have access to safe drinking water. Revenue from the program could also be used to supplement or backstop any other alternative proposal. Providing clean drinking water to disadvantaged communities is consistent with the historic emphasis on using Cap-and-Trade revenue to benefit these communities. It would also help eliminate the need for some of these communities to rely on the transportation of bottled water or shipped water in order to have access to safe drinking water – thereby resulting in a reduction of GHG emissions.

87


TO: Board of Directors FROM: General Manager DATE: May 21, 2018 SUBJECT: ACWA’s Request for Signatures on Comment Letter to the State Water Resources

Control Board – 2017 Electronic Annual Report

Action/Discussion Fiscal Impact Resolution Information Only Recommendation That the Board review the draft letter from a large coalition of water agencies to the State Water Resources Control Board (Water Board) regarding the new 2017 electronic Annual Report (eAR) and authorize the District General Manager to be included as a signatory to the letter. Background The District has been invited to join a coalition of water agencies commenting on concerns with the Water Board’s new 2017 Electronic Annual Report (eAR) for the Drinking Water Program. This letter (included in the packet) identifies significant concerns of a large number of water agencies regarding specific content with the 2017 eAR and respectfully requests the Water Board consider taking steps to improve overall data collection efforts and to work more closely with water agencies to achieve mutually beneficial objectives. Concerns These new questions are the latest in a series of substantive changes to the eAR since the drinking water program under CDPH was reclassified and brought under the State Board. Such changes to the eAR have expanded the report from a data collection effort focused exclusively on drinking water quality to a request for information pertinent to an ever-growing number of policy objectives within the State Board. The newest sections in the 2017 report—affordability, water loss, and climate change—represent the most expansive interpretation yet of the Board’s regulatory authority to require a “technical report” on an agency’s drinking water system. The inquiries go far beyond the original intent of the eAR, and many are wary of how the data will be interpreted and used. ACWA will be signing on to the letter, and are encouraging water agencies and other associations to do so as well. Attachments • Comment Letter • Summary of Concerns

88

May 2, 2018 via email: [email protected] State Water Resource Control Board Felicia Marcus, Chair 1001 I Street Sacramento, CA 95814 Subject: 2017 Electronic Annual Report Dear Chair Marcus and Board Members: On March 19, 2018, State Water Resources Control Board (State Board) staff held a webinar introducing new content to be added to the 2017 electronic Annual Report (2017 eAR). This new content was developed and rolled out in the 2017 eAR without the benefit of conducting an open and transparent stakeholder process. As part of the 2017 eAR form, new data is being requested without the advance notice necessary to allow water agencies to collect and report accurate information. A coalition of water utilities have come together to express our comments related to the new 2017 eAR requirements. We believe a great opportunity exists for the State Board and water suppliers to work together to jointly improve water supply reliability, affordability, sustainability and water quality. Included in the effort should be partnering together to collect and analyze relevant and reasonable data to inform and assist with water management decisions. Existing stakeholder processes should be used to develop data needs for current regulatory efforts. For legislation that is pending it is premature to begin data collection for program design. The abrupt and one-sided approach to new data collection for the 2017 eAR, as outlined above, limits the value and availability of the data being requested and is counterproductive to stakeholder processes currently in place. Below, we have compiled comments and concerns about using the 2017 EAR to collect the new information, the timing of data requests, and the process used to determine the content of the data requested. We have also attached a list of concerns addressing specific content in the 2017

89


SWRCB 2017 eAR May 16, 2018 Page 2

eAR. We respectfully ask that you consider our comments and take the steps necessary to improve overall data collection efforts so that the State Board and water suppliers can partner together effectively to achieve mutually-beneficial, shared objectives. The electronic Annual Report The eAR is not the best tool to gather relevant and informative data about water rates, affordable drinking water, water loss from distribution system, and climate change adaptation and resiliency for water utilities. The new content being requested lacks a nexus to the stated purpose of, or the authority cited (Section 116530 of the California Health and Safety Code) for, the annual report. Water supplier staff and managers most familiar with completing the annual report in the past may not be familiar with the issues that the new content seeks to address, and therefore may not be the best source for relevant data. There is also a concern about the frequency of data collection. The annual collection and reporting of requested new information on water loss and climate change serves no reasonable purpose; much of the requested information does not change significantly from year to year. Timing of Data Requests To improve accuracy and relevancy of data collected, adequate advanced notification is required prior to requesting new data. The 2017 eAR asks for data that was not collected by water suppliers in 2017. Water suppliers need to know in advance what data will be required for a given year in order to collect and report accurate and relevant data. Therefore, any data collected for 2017 should not be used to inform policy or regulation. Accordingly, the same data request for 2018 will also not produce accurate data, since suppliers did not have the opportunity to start collecting information prior to April 2018. Even after learning of the new data requests, many agencies do not have systems or staff in place to collect requested data immediately. Any proposed changes in data requests should be communicated well in advance of the time period the State Board desires to collect the data for. Advanced notice will improve accuracy and availability. Data Request Process Implementing a stakeholder process will help improve the acquisition of relevant data, as well as improving data accuracy and availability. An open, transparent, and meaningful two-way stakeholder process will help the water community understand the need, purpose, and level of significance of new data requests. The information gathered through the stakeholder process will be helpful in explaining to decision makers at the local level why the State Board is asking for more information. It will also help explain why increasing costs to local agencies and their customers will be necessary to acquire that data. A stakeholder process will improve the value

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SWRCB 2017 eAR May 16, 2018 Page 3

of information collected, and reduce the possibility of misinterpretation and misunderstanding both by those providing the data and those interpreting it. There are currently other stakeholder processes in place, with appropriate water supplier staff participating, to address both the water loss and affordable drinking water issues. There are also proposed changes to Urban Water Management Plans to address climate change adaptation and resiliency by water suppliers. This new data being requested in the 2017 eAR represents a potential duplication of effort. Stakeholder-driven processes should be utilized to improve the quality and quantity of data collected and to economize the staff time invested in data collection. Water suppliers have proved a willingness to provide reasonable and relevant information. This is demonstrated each month as the large majority of water suppliers continue to voluntarily provide water use and efficiency information to the State Board. Moving forward, any data requests should be well formulated and amply vetted through an open and transparent stakeholder process. The current one-sided closed process approach being taken on changes to the 2017 eAR is unlikely to result in improved data quality or a better informed process. We ask that you work with us in a stakeholder-driven process to identify relevant and necessary information required for a clearly stated purpose, which will not result in duplicative efforts of other reporting requirements. Thank you for considering our comments. Sincerely, Click then type Name Click then type Title c:/Attachment(s)/Enclosure(s) Writer's Initials (Uppercase) :typist's initials (lowercase)

91

Summary of Concerns Related to the 2017 Electronic Annual Report April 27, 2018

1

Dear Water Supplier,

As you’re likely aware, the SWRCB has added questions to the 2017 Electronic Annual Report for the

Drinking Water Program (eAR). These new questions are the latest in a series of substantive changes to

the eAR since the drinking water program under CDPH was reclassified and brought under the State

Board. Such changes to the eAR have expanded the report from a data collection effort focused

exclusively on drinking water quality to a request for information pertinent to an ever‐growing number

of policy objectives within the State Board. The newest sections in the 2017 report—affordability, water

loss, and climate change—represent the most expansive interpretation yet of the Board’s regulatory

authority to require a “technical report” on an agency’s drinking water system. The inquiries go far

beyond the original intent of the eAR, and we’re wary of how the data will be interpreted and used.

State Board staff claims these developing policies as the “regulatory mandates” that necessitate

inclusion of the new sections in the eAR, in order to ensure that the State Board has adequate data to

comply with regulations and inform program design. It is the opinion of a growing number of water

agencies, however, that these questions are so poorly constructed that the answers to them will be

useless at best and likely misconstrued, which will only further the misunderstanding of water delivery

and billing that currently informs the development of related policies at the State Board.

This coalition of concerned agencies has written a letter to the State Board directors enumerating the

flaws in process and content of the new sections of the eAR (see attached). Among other points, the

letter cautions that, because water agencies did not have adequate notice of the desired information or

the opportunity to assist State Board staff in writing more nuanced and useful questions, data from this

2017 eAR should not be used to develop policy or related programs. If you would like to sign on to the

letter please provide your name, title, and organization to Elizabeth Lovsted ([email protected]) or

Irma Rodriquez ([email protected])

That letter indicates that concerned agencies will be filling out the new sections of the 2017 eAR in a

concerted fashion to demonstrate the inutility of the vague and objectional questions; this letter is

intended as a guidance document for how water agencies that share our concern can fill out the eAR. It

will proceed question by question through the new sections, indicating how coalition agencies will

respond, and why, and will propose common explanatory language to include in what little comment

space is available. (We know the comment language isn’t perfect, but it’s been tested and tightened to

fit within the character space permitted in corresponding comment boxes.)

Should you share our concerns about the potential misuse of this information and care to participate in

this concerted effort, we encourage you to fill out the new sections as recommended.

SUBMITTAL DATE: As part of the organization of this small show of resistance, we hope you’ll consider

submitting the report on May 31st, so the SWRCB gets the “protest” submittals on the same day.

Should you wish to discuss this collective action further, please don’t hesitate to contact Elizabeth

Lovsted ([email protected] /951.928.3777 x4307) at Eastern Municipal Water District or Ian Prichard

([email protected] / 805.482.6562) at Camrosa Water District.

92

Wtr Cons. (Acre-feet) %

Wtr Cons. (Acre-feet) %

POMONA 44.0 3.947% MWD 928.1 77.484%WALNUT 712.8 63.934% TVMWD 269.7 22.516%ROWLAND 358.1 32.119% LaVERNE 0.0 0.000%LaVERNE 0.0 0.000% Total 1,197.80 100.000%

1,114.9 100.000% 1,114.90BILLING DIFFERENCE 82.900 6.921%

Connection / Description

Allocated Share of Billing Differnce

Adjusted Agency Consumption

Adjusted Consumption for Billing (Acre-

feet)Water Purchased

from MWD

Water Purchased

from TVMWD

Water Purchased

from LaVERNE WELL

Total Water Purchased (Acre-feet)

(Acre-feet) (Acre-feet) (Rounded) 77.484% 22.516% 0.000% 100.000%POMONA 44.0 3.272 47.3 47.3 36.6 10.6 0.0 47.3WALNUT 712.8 53.001 765.8 765.8 593.4 172.4 0.0 765.8ROWLAND 358.1 26.627 384.7 384.7 298.1 86.7 0.0 384.8LaVERNE 0.0 0.000 0.0 0.0 0.0 0.0 0.0 0.0

1,114.9 82.900 1,197.8 1,197.8 928.1 269.8 0.0 1,197.9

MWD PM-15

TVMWD PM-21

MWD CAPACITY RESERVATION

TVMWD CONNECTED

CAPACITY

TVMWD WATER USE

CHARGE TOTAL

City of PomonaCons. A.F. 36.6 10.6 27,582.19 5,365.26 5,828.07Water Rate 1,010.00$ 1,010.00$ 25.00% 52.00% 23.32%

Total 36,966.00 10,706.00 6,895.55 2,789.94 1,359.11 - $58,716.59Walnut Valley Water District

Cons. A.F. 593.4 172.4 27,582.19 5,365.26 5,828.07Water Rate 1,010.00$ 1,010.00$ 48.33% 28.00% 46.89%

Total 599,334.00 174,124.00 13,330.47 1,502.27 2,732.78 $791,023.53Rowland Water District

Cons. A.F. 298.1 86.7 27,582.19 5,365.26 5,828.07Water Rate 1,010.00$ 1,010.00$ 26.67% 20.00% 29.79%

Total 301,081.00 87,567.00 7,356.17 1,073.05 1,736.18 $398,813.40City of LaVerne

Cons. A.F. 0.0 0.0Water Rate $1,010.00 $1,010.00

Total $0.00 $0.00 $0.00

Total(A.F.) 928.1 269.8 1,197.9Total ($) 937,381.00 272,397.00 - - 1,209,778.00

Total-Other 27,582.19 5,365.26 5,828.07 - - - 38,775.52

April 2018 Water Use

AGENCY CONSUMPTION (Per PWR Meter Reads) ACTUAL WATER PRODUCTION

CALCULATION OF AGENCY WATER CONSUMPTION(Water consumption billed to each agency is based on amount of water purchased from MWD and TVMWD)

POMONA-WALNUT-ROWLANDJOINT WATER LINE COMMISSION

WATER USE DISTRIBUTION AND

BILLING REPORT

93


TO: Board of Directors FROM: General Manager DATE: May 21, 2018 SUBJECT: Follow-up Regarding Prior Board Actions


Recommendation For information only.

Background Information

Following is an update regarding matters that have recently come before the Board of Directors.

Item Meeting Date Action Status Follow-Up

Board was asked to Consider Contract for Auditing Services 3/19/18 Board Approved Underway Engagement Letter will

be executed

Board received refund check in the amount of $12,910 from JPIA on behalf of District

4/16/18 No action taken Complete N/A

Board was asked to Adopt District Election Services Resolution and District Election Candidate Statements – Divisions II and III

4/16/18 Board Approved Complete N/A

Board was asked to approve Revised Salary Charts for Mid-Management and General Employees Unit – Inclusion of DOT Positions


Board was asked to consider Adoption of LAIF Resolution Authorizing Signers


Board was asked to Consider Support for Proposition 68 (SB 5) Parks, Environment and Water Bond


94

Item Meeting Date Action Status Follow-Up

Board was asked to consider Approval of the PBWA FY 2018-19 Budget


95

June 2018 Monthly Planner

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 2

3 4 5 6 7 8 9

6:30 PM Diamond Bar City Council Meeting

8:00 AM TVMWD Board Meeting

7:00 PM PBWA Meeting

10 11 12 13 14 15 16

Personnel Committee 4:00 PM

Engineering Committee 4:00 PM

7:00 PM Walnut City Council Meeting

Public Info Committee 4:45 PM

Finance Committee 4:30 PM

17 18 19 21 22 23

4:00 PM P-W-R Meeting

5:00 PM WVWD Board Meeting



4:30 PM WVWD

Board Workshop

24 25 26 27 28 29 30

Police and Fire Appreciation BBQ

12:00 PM 7:00 PM Walnut City

Council Meeting

AWWA Conference - Las Vegas

96

July 2018 Monthly Planner


1 2 3 4 District Offices

Closed in Observance of Independence

Day

5 6 7


8 9 10 11 12 13 14


15 16 17 18 19 20 21




22 23 24 25 26 27 28


29 30 31

97

August 2018 Monthly Planner


1 2 3 4


5 6 7 8 9 10 11



7:00 AM PBWA Meeting

12 13 14 15 16 17 18

Personnel Committee 4:00 PM

Engineering Committee 4:00 PM


Public Info Committee 4:45 PM

Finance Committee 4:30 PM

19 20 21 22 23 24 25




4:00 PM WVWD Board Workshop

26 27 28 29 30 31

98

FINAL OPERATING SAFE YIELD DETERMINATION

FISCAL YEAR 2018-19

Introduction

The Puente Basin Judgment (Judgment) provides for the annual determination of the

quantity of water that may be produced from the Basin. This quantity of water is called the

Operating Safe Yield. In general, the Operating Safe Yield differs from the safe yield in that

economic factors, as well as hydrologic factors, are considered when determining the Operating

Safe Yield of a groundwater basin. The factors which were studied for this determination are

groundwater elevations, rainfall, subsurface outflow to the Main San Gabriel Basin (Main Basin),

production, invert drain flow, import return flow, and cost and availability of imported water. The

following sections will present a discussion of each of these factors, set an Operating Safe Yield

for fiscal year 2018-19 and an estimate of Operating Safe Yield for the subsequent four years.

Groundwater Elevations

Los Angeles County Department of Public Works (LACDPW) semiannually monitors

groundwater elevations at the following wells in Puente Basin: 2S/10W-9Q7, 2S/10W-13A2,

2S/10W-13E1, 2S/10W-10Q, and 2S/10W-11K1. LACDPW also measured Well 2S/9W-4G1

until it was destroyed in late 1998 to make room for development. Currently LACDPW takes

spring and fall measurements.

Puente Narrows Watermaster monitors the groundwater elevation at well 2S/10W-8E3 in

Main Basin and 2S/10W-9Q9S (Tony Poli Well) in Puente Basin. Between spring 2016 and spring

2017 the elevation at well 2S/10W-8E3, the downstream Puente Narrows well, increased 3.8 feet

and the elevation at well 2S/10W-9Q9S, the upstream Puente Narrows well, increased 0.9 feet.

Walnut Valley Water District monitors the groundwater elevations at its wells, 2S/10W-

13A3 (Fairway Well) and 2S/9W-17D2 (Lycoming Well), 2S/9W-8 (Baker Parkway Well),

2S/9W-18 (Well 5) and the 2S/9W-4J (Puente Basin Monitoring Well 1).

Rowland Water District monitors groundwater elevations at its well 2S/10W-9Q9S (Tony

Poli Well).

The well numbering system is that used by the Department of Water Resources.

Plate 1 shows the location of the monitoring wells.

Figure 1 is a hydrograph of the groundwater elevation at the wells used for the Puente

199

240

260

280

300

320

340

360

72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Elev

atio

n in

Fee

t

Calendar Year

Figure 1GROUNDWATER ELEVATIONS

Puente Narrows Wells

2S/10W-8E3 2S/10W-9Q7 2S/10W-9Q9S

3101

Puente Basin Watermaster 2018-19 Final Operating Safe Yield Report

070901

Narrows calculation; 2S/10W-8E3, and 2S/10W-9Q7 and 2S/10W-9Q9S.

Figure 2.1 is a hydrograph of the groundwater elevation at wells 2S/10W-9Q9S, 2S/10W-

10Q, 2S/10W-11K1, 2S/10W-9Q7, and 2S/10W-13E1 (destroyed in 2015) located in the Puente

Basin for the years 1972 through present. Figure 2.2 is a hydrograph of the groundwater elevation

at wells 2S/10W-13A2, 2S/10W-13A8, 2S/9W-4J, 2S/9W-4G1 (destroyed in 1998), 2S/9W-17D2,

2S/9W-8, 2S/9W-18 and 1S/9W-33 located in the Puente Basin for the years 1972 through present.

Rainfall

Annual rainfall data from Hacienda Heights Station and Walnut Valley Water District

Station were recorded for fiscal years July 1, 2016 through June 30, 2017 (fiscal year 2016-17),

and July 1, 2017 through January 31, 2018 (fiscal year 2017-18). In fiscal year 2016-17, the rainfall

at the Hacienda Heights Station and at the Walnut Valley Water District Station was above normal.

The index of wetness for fiscal year 2016-17 at the Hacienda Heights Station was 113 percent of

normal and at Walnut Valley Water District Station was 137 percent of normal. The current trend,

at these stations, indicates rainfall below normal for this time of year. Table 1 is a tabulation of

rainfall data for the Hacienda Heights Station and the Walnut Valley Water District Station. The

data for the Walnut Valley Water District Station are graphically depicted in Figure 3.

Subsurface Outflow Subsurface outflow to Main Basin is determined under the provisions of the Puente

Narrows Agreement between Puente Basin Water Agency (Puente Agency) and Upper San Gabriel

Valley Municipal Water District (Upper District). The Puente Narrows Agreement calls for an

average Base Underflow of 580 acre-feet per year (AFY) from Puente Basin to Main Basin. Any

annual quantity exceeding the Base Underflow is credited to Puente Agency. Through fiscal year

2016-17, Puente Agency had an accumulated credit of 12,921 acre-feet. Likewise, any quantity

less than the Base Underflow is a debit to Puente Agency.

On November 30, 1989 Puente Agency and Upper District entered into "Agreement Re:

Determination of Impact of "Clean-up" Production by Carrier Corporation Upon "Subsurface

Outflow" Under Puente Narrows Agreement" (Clean-up Production Agreement). This agreement

gives credit to the Puente Basin Water Agency for clean-up production by Carrier Corporation

(Carrier) discharged to the San Jose Creek. In 2008-09, Regional Board revoked Carrier’s permit

to discharge to the San Jose Creek. Rowland began taking the clean-up water from Carrier for

distribution to its recycled water customers. The total credit (Puente Narrows Agreement and

4102

300

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350

375

400

425

450

72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Elev

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n in

Fee

t

Calendar Year

Figure 2.1GROUNDWATER ELEVATIONS

in Puente Basin

2S/10W-9Q7 2S/10W-9Q9S 2S/10W-10Q 2S/10W-11K1 2S/10W-13E1

5103

450

475

500

525

550

575

600

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Elev

atio

n in

Fee

t

Calendar Year

Figure 2.2GROUNDWATER ELEVATIONS

in Puente Basin

1S/9W-33 2S/9W-4G1 2S/9W-4J 2S/9W-8 2S/9W-17D2 2S/9W-18 2S/10W-13A2 2S/10W-13A3

6104

Puente Basin Watermaster

070901

Fiscal Index of Index ofYear Annual Normal 2/ Wetness Annual Normal 3/ Wetness

1972-73 22.39 4/ 18.05 117 -- -- --1973-74 17.16 4/ 18.05 88 -- -- --1974-75 16.04 4/ 18.05 82 -- -- --1975-76 9.1 18.05 50 -- -- --1976-77 13.9 18.05 77 -- -- --1977-78 41.2 18.05 228 -- -- --1978-79 26.8 18.05 148 -- -- --1979-80 30 18.05 166 -- -- --1980-81 9.3 18.05 52 -- -- --1981-82 14.9 18.05 83 -- -- --1982-83 33.8 18.05 187 34.45 17.69 1951983-84 13.44 18.05 74 12.37 17.69 701984-85 12 18.05 66 13.66 17.69 771985-86 22.5 18.05 125 18.85 17.69 1071986-87 10.8 18.05 60 10.91 17.69 621987-88 16.5 18.05 91 12.98 17.69 731988-89 12 18.05 66 8.8 17.69 501989-90 11.4 18.05 63 11.4 17.69 641990-91 16.4 18.05 91 14.68 17.69 831991-92 22.1 18.05 122 21.37 17.69 1211992-93 33.51 4/ 18.05 173 39.07 17.69 2211993-94 11.8 18.05 65 11.59 17.69 661994-95 32.7 18.05 181 29.35 17.69 1661995-96 16.6 18.05 92 15.04 17.69 851996-97 17.91 18.05 99 18.21 17.69 1031997-98 36.65 18.05 203 37.29 17.69 2111998-99 9.05 18.05 50 9.14 17.69 521999-00 11.89 18.05 66 12.14 17.69 692000-01 16.26 18.05 90 15.55 17.69 882001-02 6.52 18.05 36 5.34 17.69 302002-03 20.12 18.05 111 19.16 17.69 1082003-04 12.5 18.05 69 13.45 17.69 762004-05 37.6 18.05 208 38.45 17.69 2172005-06 13.94 18.05 77 15.92 17.69 902006-07 4.86 18.05 27 3.98 17.69 232007-08 13.38 18.05 74 14.37 17.69 812008-09 12.71 18.05 70 15.46 17.69 872009-10 16.34 18.05 91 18.79 17.69 1062010-11 23.35 18.05 129 23.09 17.69 1312011-12 10.24 18.05 57 10.54 17.69 602012-13 7.13 18.05 40 8.21 17.69 462013-14 5.90 18.05 33 6.13 17.69 352014-15 7.36 18.05 41 8.44 17.69 482015-16 9.06 18.05 50 10.75 17.69 612016-17 21.54 18.05 119 25.57 17.69 145

2017-18 5/ 5.61 18.05 5.15 17.691/In September 2010 rainfall station moved to Hacienda Heights Fire Station 91 and name changed to 201E.2/Normal for Station 201D/E is based on data at the station from FY 1976-2000.

4/Estimated.5/Recorded data through March 31, 2018.

3/Normal for the Walnut Valley Water District Station is based on data at the station from FY 1982-83 to FY 2007-08.

Table 1RAINFALL AT STATIONS IN PUENTE BASIN (in inches)

Hacienda Heights Station(201D/E 1/)

Walnut Valley Water District Station

7105

0.00

5.00

10.00

15.00

20.00

25.00

30.00

July August Sept Oct Nov Dec Jan Feb Mar Apr May June

Acc

umul

ated

Rai

nfal

l in

Inch

es

Month Ending

Figure 3 RAINFALL AT WALNUT VALLEY WATER DISTRICT STATION

Normal 2016-17 2017-18

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070901

Clean-up Production Agreement) to the Puente Agency is 17,411 acre-feet as of the end of fiscal

year 2015-16. The Puente Narrows Watermaster will calculate the credit for fiscal year 2016-17

in May 2018.

To avoid future debits to Puente Agency, the Judgment sets as a minimum target an accrued

credit of 1,000 AF, unless a water shortage emergency exists.

Figure 4 shows the annual excess outflow and clean-up production that has been credited

to the Puente Agency. Table 2 shows the historic subsurface outflow as reported under the Puente

Narrows Agreement and the Clean-up Production Agreement.

Production

Between 1960 and 1986, groundwater production from the Puente Basin declined

significantly due to the use of imported water and the poor quality of the groundwater. Production

from the Basin has increased since 1986.

Groundwater is currently produced by these agencies for different purposes.

§ Title Successor Agency to Industry Urban Development Agency and City of

Industry: Dewatering at Grand Crossing Parkway, Baker Parkway and Alameda

Corridor East Projects

§ Royal Vista Golf Course (Golf Course): Irrigation of turf

§ Walnut Valley Water District: Supplemental reclaimed water supply

§ Rowland Water District: Supplemental reclaimed water supply, dewatering

§ Minimum water producers: Irrigation of crops

In fiscal year 2016-17, the Principal Producers, as listed on Table 3, pumped 1,394.9 acre-

feet. Between July 1, 2017 and March 31, 2018, the Principal Producers pumped 1,150.8 acre-

feet. It is estimated that the Principal Producers will pump 1,900 acre-feet in fiscal year 2017-18.

The Regional Water Quality Control Board (Regional Board) was advised in 1985 that

perchloroethylene (PCE) leaked into the groundwater of the Puente Basin. The leak was located

west of Anaheim Puente Road on the site of Carrier Corporation (Carrier), upstream of the Puente

Narrows. The spill resulted in Carrier pumping Puente Basin groundwater for clean-up purposes.

The pumped water is treated for removal of volatile compounds and is taken by RWD. The

treatment capacity of the system is 500 gallons per minute. In fiscal year 2016-17, Carrier

produced 99.4 acre-feet. Between July 1, 2017 and March 31, 2018, Carrier pumped 42.7 acre-

feet. It is estimated that 60 acre-feet will be produced in fiscal year 2017-18. Table 3 shows the

9107

The Clean-up Credit for 2015-16 will be calculated in May 2017.

0

200

400

600

800

1000

1200

1400

74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16

Out

flow

in A

cre-

feet

Fiscal Year Ending

Figure 4PUENTE NARROWS OUTFLOW

Underflow Obligation Underflow Credit Clean-up Credit

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(1) (2) (3) (4) (5) (6) (7)Annual AccumulatedPuente Puente Annual Accumulated

Narrows Narrows Clean-up Clean-up AccumulatedAnnual Underflow Credit or Credit or Extraction Extraction Credit or

Fiscal Calculated Obligation 1/ (Debit) 2/ (Debit) Credit 3/ Credit (Debit) 4/

Year (AFY) (AFY) (AFY) (AF) (AFY) (AFY) (AF)1971-72 0 0 0 0 0 0 01972-73 692 580 112 112 --- --- 1121973-74 796 580 216 328 --- --- 3281974-75 710 580 130 458 --- --- 4581975-76 732 580 152 610 --- --- 6101976-77 658 580 78 688 --- --- 6881977-78 730 580 150 838 --- --- 8381978-79 850 580 270 1,108 --- --- 1,1081979-80 930 580 350 1,458 --- --- 1,4581980-81 820 580 240 1,698 --- --- 1,6981981-82 845 580 265 1,963 --- --- 1,9631982-83 850 580 270 2,233 --- --- 2,2331983-84 798 580 218 2,451 --- --- 2,4511984-85 820 580 240 2,691 --- --- 2,6911985-86 840 580 260 2,951 --- --- 2,9511986-87 850 580 270 3,221 --- --- 3,2211987-88 880 580 300 3,521 --- --- 3,5211988-89 890 580 310 3,831 71 71 3,9021989-90 910 580 330 4,161 258 329 4,4901990-91 905 580 325 4,486 424 753 5,2391991-92 925 580 345 4,831 359 1,112 5,9431992-93 890 580 310 5,141 326 1,438 6,5791993-94 845 580 265 5,406 445 1,883 7,2891994-95 860 580 280 5,686 242 2,125 7,8111995-96 810 580 230 5,916 301 2,426 8,3421996-97 820 580 240 6,156 422 2,848 9,0041997-98 840 580 260 6,416 121 2,969 9,3851998-99 750 580 170 6,586 241 3,210 9,7961999-00 760 580 180 6,766 371 3,581 10,3472000-01 860 580 280 7,046 406 3,987 11,0332001-02 890 580 310 7,356 207 4,194 11,5502002-03 940 580 360 7,716 135 4,329 12,0452003-04 960 580 380 8,096 129 4,458 12,5542004-05 960 580 380 8,476 84 4,542 13,0182005-06 860 580 280 8,756 135 4,677 13,4332006-07 950 580 370 9,126 122 4,799 13,9252007-08 940 580 360 9,486 81 4,880 14,3662008-09 960 580 380 9,866 0 4,880 14,7462009-10 945 580 365 10,231 0 4,880 15,1112010-11 985 580 405 10,636 0 4,880 15,5162011-12 890 580 310 10,946 0 4,880 15,8262012-13 930 580 350 11,296 0 4,880 16,1762013-14 985 580 405 11,701 0 4,880 16,5812014-15 980 581 400 12,101 0 4,880 16,9812015-16 1010 582 430 12,531 0 4,880 17,411

2016-17 5/ 970 583 390 12,921 5/ 5/ 5/

2/( 3)=(1)-(2).

4/(7)=(4)+(6).5/To be determined in May 2018.

3/The calculation under "Agreement Re: Determination of Impact of "Cleanup" Production by Carrier Corporation Upon "Subsurface Outflow" Under "Puente Narrows Agreement", November 30, 1989 is made by the Puente Narrows Watermaster.

Table 2SUBSURFACE FLOW THROUGH PUENTE NARROWS AS CALCULATED UNDER THE

PUENTE NARROWS AGREEMENT BY THE PUENTE NARROWS WATERMASTER

1/The calculation under the Puente Narrows Agreement as made by the Puente Narrows Watermaster. The annual obligation under the agreement is 580 AFY.

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fiscal year 2016-17 production and estimated production for fiscal years 2017-18 and 2018-19.

Table 3 ANNUAL GROUNDWATER PRODUCTION IN THE PUENTE BASIN

Acre-Feet Per Fiscal Year Pumpers 2016-17 2017-18* 2018-19*

PRINCIPAL PRODUCERS City of Industry 174.1 300 300 Successor Agency to Industry Urban-Development Agency 174.1 300 300 Royal Vista Golf Course 337.7 400 400 Rowland Water District 178.6 200 300 Walnut Valley Water District 530.4 700 700

TOTAL 1,394.9 1,900 2,000 BASIN CLEAN-UP PUMPING Carrier Corporation 99.4 60 80

GRAND TOTAL 1,494.3 1,960 2,080 *Estimated annual value.

The Puente Basin lies within the San Gabriel Valley Superfund Site. The United States

Environmental Protection Agency (EPA) is the lead agency for clean-up of contaminants in the

Puente Basin. The western half of the basin lies within the EPA's Puente Valley Operable Unit

(PVOU). Special Notice Letters were mailed in May 1993 to the Potentially Responsible Parties

(PRPs). The PRPs formed a Steering Committee to respond to the requirements of the EPA.

The clean-up of the PVOU involves the shallow groundwater. On August 22, 2005 EPA

released a statement announcing an agreement with Carrier and its parent company, United

Technologies, Inc. requiring the company to spend an estimated $27.8 million on projects and

penalties for the cleanup of the shallow groundwater contamination of the PVOU. Carrier will

build a groundwater treatment system(s) and install new wells to prevent the contamination from

continuing to migrate. The treated groundwater will be provided to local water suppliers or

discharged to surface water. The Carrier project(s) will implement a substantial portion of the

EPA’s interim site cleanup plan. Other responsible parties are addressing other portions of the

PVOU cleanup plan. EPA will develop a final cleanup plan after the interim remedy has operated

for number of years. In late February 2006, the construction of fifteen groundwater production

wells commenced. Nine of the wells were drilled in the shallow zone and six in the intermediate

zone. The wells are in the Main San Gabriel Basin portion of the PVOU, west of Hacienda

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Boulevard.

In 2008, the following activities were completed by the PVOU shareholders; construction

of Compliance and Sentinel Wells, Westernmost Plume Area Monitoring Wells, and Mid-Valley

Area Wells. In February 2009, the PVOU began Quarterly Comprehensive Shallow Zone

Groundwater Monitoring.

In late August 2009, LACDPW rescinded permission for Northrop Grumman to connect

the PVOU intermediate zone pipeline to the storm drain. The treated water exceeded the proposed

2008 CWA 303(d) list for selenium in Puente Creek and TDS in San Jose Creek Reach 1. These

restrictions on discharging to surface water required USEPA and the parties to formulate a new

remedy. USEPA proposed two solutions; a short-term solution that would allow them to begin

treating and pumping the contaminated groundwater and put it to beneficial use and a long-term

solution that would meet water quality standards and put the water to beneficial use.

In fall 2012 and continuing through spring 2013, USEPA oversaw additional remedial

investigations (Remedial Design Investigation, RDI) in the PVOU. The investigations included

installation of groundwater monitoring wells, sampling of groundwater and soil vapor, and

sampling of indoor air quality in select buildings. The RDI provided data for the continued

evaluation of the nature and extent of the groundwater contamination, design of treatment

facilities, and evaluation of the impact of shallow aquifer contamination on indoor air quality.

In late 2013 and 2014, USEPA continued RDI investigations for the shallow and

intermediate zones; including a reinjection pilot study for treated water from the shallow zone and

continued evaluation of end use alternatives for treated water from the intermediate zone. As of

November 2014, Puente Basin Water Agency agreed to take all water available from the

Intermediate Zone treatment system, the water will be produced in the Main San Gabriel Basin.

Currently, remedial design for the shallow zone facilities is estimated to be completed by

2018 with start-up of facilities in 2019. Extraction rates for the intermediate zone facilities require

further investigation.

Invert Drain Flow

San Jose Creek runs in a lined channel passing through Puente Basin. During the lining of

San Jose Creek in 1968, drains were installed to relieve uplift pressure on the concrete bottom.

Flow from these drains is Puente Basin groundwater that has become surface outflow. In Fiscal

year 1989-90 Watermaster authorized semi-annual measurement (spring and fall) of the invert

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drain flow. Measurements were taken when possible between fiscal years 1989-90 and 2009-10.

Table 4 is a tabulation of the invert drain flow measurements.

From the review of streamflow data and observations of the location of flow into the

channel from cracks and manholes Watermaster became concerned that the recent invert drain

flow measurements may underestimate the quantity of groundwater that flows out of the Puente

Basin as surface flow. Watermaster has performed numerous statistical models but no correlation

has emerged. Currently, the invert drain flow is being determined from historical rainfall data and

flow measurements with a one-year lag to account for percolation of the rainfall into the saturated

zone. When the rainfall is less than 11.5 inches the annualized flow is estimated to be 700 acre-

Table 4

INVERT DRAIN FLOW

Annualized Annualized

Total Flow Total Flow

Date (AF) 1/ Date (AF) 1/

10-Dec-80 2800 18-Oct-00 1033

10-Jun-87 1321 18-May-01 1322

04-Mar-88 1766 10-Apr-02 1642

12-Sep-89 483 27-Jun-03 680

12-Oct-90 5412/ 08-Jul-05 1201

10-May-91 812 07-Oct-05 11703/

19-Nov-91 425 05-May-06 1694

16-Jul-92 890 06-Oct-06 1465

25-Jun-93 2049 02-Mar-07 1473

19-May-95 1934 19-Oct-07 2173

12-Jul-96 952 18-Jul-08 788

11-Jul-97 1429 17-Oct-08 788

23-Jun-98 3360 17-May-09 1458

08-Oct-98 1416 11-Oct-09 7373/

14-Sep-99 853 21-May-10 13453/

1/ Spot measurement calculated as annualized total flow. 2/ Represents 202 AF of measured flow and 339 AF of estimated flow. 3/ Measurements were adjusted to account for flow from submerged weepholes by using the average flows.

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feet, between 11.5 inches and 18 inches the annualized flow is 1,350 acre-feet, and for rainfall

exceeding 18 inches the annualized flow is estimated to be 1,600 acre-feet. Table 5 shows the

data.

Table 5

Rainfall and Lagged Invert Drain Flow Sorted by

Rainfall Annual Rainfall Index of Annualized at WVWD (in) Wetness Total Flow (AF) 3.98 22% 788 5.34 30% 680 8.8 50% 541 9.14 52% 1028 11.4 64% 618.5 Average 731 11.59 66% 1934 12.14 69% 1322 12.98 73% 1124 13.45 76% 1156 14.37 81% 1123 14.68 83% 657.5 15.04 85% 1429 15.46 87% 1345 15.55 88% 1642 15.92 90% 1823 Average 1356 18.21 103% 2388 21.37 121% 2049 29.35 166% 952 37.29 211% 1134.5 38.45 217% 1580 Average 1621

The annualized estimated flow for fiscal year 2016-17 is 1,600 acre-feet.

Import Return Flow

Municipal and industrial water is served to customers in the Puente Basin by Rowland Water

District (Rowland) and Walnut Valley Water District (Walnut). Rowland and Walnut serve water

imported by The Metropolitan Water District of Southern California, purchased from Three

Valleys Municipal Water District. Walnut serves reclaimed water purchased from the County

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Sanitation Districts of Los Angeles County and pumped from its reclaimed water wells. Rowland

serves reclaimed water pumped from its reclaimed water well and recycled water purchased

through City of Industry. The Judgment provides that water imported into the basin by Puente

Basin producers and applied to lands overlying the basin results in Import Return Flow to the

groundwater basin. This Import Return Flow (calculated as 15% of the total imported water sold

within the basin boundaries exceeding the quantities sold in fiscal year 1984-85, up to 750.0 acre-

feet per year for each of the plaintiff and defendants groups) is credited to the Annual Pumping

Right of the Producer. In fiscal year 2016-17 Rowland imported 6,801.9. acre-feet and Walnut

imported 7,410.5 acre-feet of water. Their total credit for 2016-17 imports was 357.5 acre-feet.

In the future should the City or the Title Successor Agency to Industry Urban Development

Agency begin to import water, they will receive Import Return Flow Credits. Table 6 shows the

water imported into the Basin and Import Return Flow Credits.

Table 6

WATER IMPORTED INTO PUENTE BASIN AND IMPORT RETURN FLOW CREDITS (acre-feet)

Producer

(1) (2) (3) (4) (5) (6) (7) (8)

Fiscal Year 2016-17 Total

Imports in 1984-

85

Difference Calculated

Import Return Flow

Allocation of Import

Return Flow

Credit 2/ Metropolitan

Water Reclaimed

Water Ground-

water Total (4)-(5) 1/ DEFENDANTS

City of Industry 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Successor Agency to Industry Urban-Development Agency 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Royal Vista Golf Course N/A 3/ N/A N/A N/A N/A N/A N/A N/A

TOTAL 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

PLAINTIFFS

Rowland Water District 6,003.0 798.9 0.0 6,801.9 5,197.8 1,604.1 240.6 240.4

Walnut Valley Water District 6,742.8 667.7 0.0 7,410.5 6,630.9 779.6 116.9 116.9

TOTAL 12,745.8 1,466.6 0.0 14,212.4 11,828.7 2,383.7 357.5 357.5

1/ The return flow credit is 15 percent of this amount, up to 750 acre-feet to the plaintiffs and defendants, each. 2/ Allocated per direction of Rowland and Walnut pursuant to Paragraph 9, subparagraph B. 3/ Not Applicable.

It should be noted that the Judgment provides that Import Return Flow Credits are not a portion of

the Basin Operating Safe Yield. That is, Producers may pump their Import Return Flow Credits

in addition to their share of the annual Operating Safe Yield.

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070901

Cost and Availability of Imported Water

Currently, water for potable use in the Puente Basin is imported by Metropolitan and

delivered to Three Valleys Municipal Water District for purchase by Rowland and Walnut. In the

future should City of Industry or the Title Successor Agency to IUDA begin to purchase imported

water it would be imported by Metropolitan and delivered by Upper San Gabriel Valley Municipal

Water District.

Water for non-potable (landscaping) use is recycled water purchased from the County

Sanitation Districts of Los Angeles County (CSD) and delivered by Walnut for purchase by its

retail customers. The recycled system of Walnut is augmented by Puente Basin groundwater

pumped from four wells. The recycled system of Rowland is supplied by Puente Basin

groundwater pumped from one well; Puente Basin groundwater pumped and treated by Carrier;

and surplus recycled water from Walnut. Industry’s wells at Grand Crossing Parkway and Nogales

Street are used for grade separation dewatering. Table 7 shows the cost of imported water from

the Municipal Water Districts, and the cost of recycled water.

Table 7 COST AND AVAILABILITY OF IMPORTED WATER FOR 2017-18

Entity Selling Water

Entity Purchasing Water

Type of Water

Cost Water ($/AF) Availability

Joint Water Line

Rowland Water District and


Treated Noninterruptible Metropolitan $1,010.00 Available

Treated Noninterruptible Miramar Plant $1,010.00 Available

Upper San Gabriel Valley Municipal Water District City of Industry

Replenishment Water --- Unavailable

Untreated Water—Tier 1 $798.00 Available

Untreated Water—Tier 2 $884.00 Available County Sanitation District,

Pomona Plant Walnut Valley

Water District 1/ Recycled varies Available 2/

County Sanitation District, San Jose Plant

Rowland Water District Recycled $231.15 Available 2/

Walnut Valley Water District Rowland Water

District and City of Industry

Wholesale Recycled Water $312.00 Available 2/

Puente Basin Water Agency

Rowland Water District and


Imported Water $1010.00 Available

Groundwater $837.00 3/ Available 1/ Walnut no longer takes reclaimed water from the City of Pomona. 2/ Availability is limited at times. 3/ Cost varies month to month, average cost.

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Estimates of the Hydrologic Conditions in the Subsequent Year

In the subsequent year, it is estimated that the significant hydrologic events in Puente Basin

will be continued groundwater pumping by Industry, Successor Agency to IUDA, Royal Vista

Golf Course, Rowland and Walnut; continued clean-up pumping by Carrier; and decreased

recharge due to below average rainfall in fiscal year 2017-18.

Operating Safe Yield

The factors considered, as stated in the Judgment, for the determination of the Operating

Safe Yield were as follows:

1. Groundwater elevations for the previous and current year, and estimates for the

subsequent year.

2. Accrued credit or debit under the Puente Narrows Agreement.

3. Subsurface flow for the previous year, and estimates for the current and subsequent

year.

4. The cost and availability of alternate sources of water.

5. Production from the Puente Basin for the previous and current year, and an estimate of

the subsequent year.

A hydrologic balance for the Basin was calculated for the fiscal year 2016-17 conditions.

Table 8 shows the results of these calculations. The following is a brief explanation of the

components of the hydrologic balance. The change in storage was calculated for the area

influencing each of the nine water level monitoring wells in the Basin; the aggregate change in

storage was calculated to be an increase of 80 acre-feet. Plate 2 shows the area influencing each

of the monitoring wells. The components of outflow for the Basin are base underflow, excess

subsurface underflow, pumping (including Clean-up pumping) and invert drain flow; the sum of

these components for fiscal year 2016-17 was 4,065 acre-feet. The inflow to the Basin is basin

outflow plus change in storage. The inflow was calculated to equal 4,145 acre-feet for fiscal year

2016-17. The annual yield for fiscal year 2016-17 is the sum of the change in storage, excess

subsurface flow, pumping, and invert drain flow. The annual yield was calculated to equal 3,565

AF. The annual yield is the quantity of groundwater available for pumping that year.

In consideration of the hydrologic and economic factors affecting the Basin, it is

recommended that Watermaster set the Operating Safe Yield at 1,530 AF for fiscal year 2018-19

and estimate the Operating Safe Yield for each of the subsequent four years to be 1,530 AF.

18116

070901

CHANGE IN STORAGE1/--Spring to SpringA 2S/10W-9Q7 (3079M) 809 acres 36.0 EB 2S/10W-9Q9S (Tony Poli Well) 593 acres 27.0

Hydrologic Unit 2 2S/10W-10Q (3089M) 1,085 acres 0.0 EHydrologic Unit 3 2S/10W-11K1 (3108) 538 acres 0.0 EHydrologic Unit 4 2S/10W-13E1 (1810B) 2/ 2,479 acres 0.0 E

2S/10W-13A2 (3129H) 16.02S/10W-13A3 (Fairway Well) 16.0

C, D, E 2S/9W-17D2 (Lycoming Well) 1,704 acres (85.0)Hydrologic Unit 6 2S/10W-4J (Industry MW1) 1,073 acres 70.0

Subtotal 8,862 acres 80.0

OUTFLOW Base Underflow 580.0 Excess Subsurface Flow 390.0 Pumping 1,395.0 Clean-up Pumping 100.0 Invert Drain Flow 1,600.0 3/

Subtotal 4,065.0

INFLOW 4,145.0

2016-17 YIELD 3,565.0 4/

3/ Based on annual rainfall in 2016-17 of 25.57 inches at Walnut Valley Water District Main Office Station.

() indicates a negative number.E Estimate.

4/ Water available for pumping in 2016-17, under the stated assumptions. The sum of excess subsurface flow, pumping, clean-up pumping, invert drain flow and change in storage.

1/ Change in Storage = Annual Change in Elevation * Area (acres) * Specific Yield (5% for Puente Basin).

PUENTE BASIN HYDROLOGIC BALANCE FOR 2016-17Table 8

Quantity(AF)

A, BHydrologic Unit 5

Hydrologic Unit 1

581 acres

2/ Well 2S/10W-13E1 was destroyed in 2015. The estimated quantity of water calculated from change in storage for 2S/10W-13E1 is the average seasonal change in water level from 2S/10W-10Q, 2S/10W-11K1 and 2S/10W-13A3.

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Table 9 shows the Annual Pumping in fiscal year 2016-17 and Carry-over to fiscal year

2017-18 for each Principal Producer. Table 10 shows an estimate of the Annual Pumping in fiscal

year 2017-18 and Carry-over to fiscal year 2018-19 for each Principal Producer. Table 11 shows

an estimate of the Annual Pumping Right of each Principal Producer at an Operating Safe Yield

of 1,530 AF.

21119

Appendix B

(1) (2) (3) (4) (5) (11) (12) Annual Pumping Right Carry-

over toTotal 2017-18

(1)+(2)-(3) Water Annual Excess Pumping (6)-(7)2015-16 2015-16 +(4)+(5) Pumped Total Allowable Unauthorized -(11)

PRINCIPAL PRODUCERSCity of Industry 306.0 0.0 0.0 306.0 0.0 612.0 174.1 0.0 0.0 0.0 131.9 306.0Successor Agency to Industry Urban Development Agency 306.0 0.0 0.0 306.0 (27.1) 584.9 174.1 0.0 0.0 0.0 104.8 306.0Royal Vista Golf Course 306.0 NA1/ 81.2 0.0 81.3 306.1 337.7 2/ 31.6 30.6 1.0 0.0 0.0Rowland Water District 306.0 240.9 0.0 634.8 (27.1) 1,154.6 178.6 0.0 0.0 0.0 429.1 546.9Walnut Valley Water District 306.0 0.0 0.0 567.4 (27.1) 846.3 530.4 0.0 0.0 0.0 9.9 306.0Subtotal 1,530.0 240.9 68.4 1,814.2 0.0 3,503.9 1,394.9 31.6 30.6 1.0 675.7 1,464.9BASIN CLEAN-UP PUMPINGBDP Corporation NA NA NA NA NA NA 99.4 NA NA NA NA NAMalibu Grand Prix 3/ --- --- --- --- --- --- --- --- --- --- --- ---Hamilton Standard Controls 4/ --- --- --- --- --- --- --- --- --- --- --- ---Subtotal 99.4

GRAND TOTAL 1,530.0 240.9 68.4 1,814.2 0.0 3,503.9 1,494.3 31.6 30.6 1.0 675.7 1,464.9

1/ Not Applicable.2/ Due to sale of Airey Property, 12 acre-feet production from Airey well will not be attributed to Royal Vista Golf Course, formerly Los Angeles Royal Vista Golf Course.3/ CRWQCB has accepted a closure plan from MGP which is no longer producing groundwater.4/ United Technologies filed a Closure Report on 11/17/2000 and it was approved by CRWQCB on 1/9/2001.

Lost Carry-over

(4)-(7)

Pumper's Share of


Return Flow

Credit

Excess Pumping

Carry-over from

Leases

Table 9ANNUAL PUMPING AND CARRY-OVER (acre-feet)

2016-17Puente Basin Watermaster

Pumpers

(6) (7) (8) (9) (10)

22120

Appendix B

Table 10ANNUAL PUMPING AND CARRY-OVER (acre-feet)

2017-18Puente Basin Watermaster

(1) (2) (3) (4) (5) (11) (12) Annual Pumping Right Carry-

over toTotal 2018-19

(1)+(2)-(3) Water Annual Excess Pumping (6)-(7)2016-17 2016-17 +(4)+(5) Pumped Total Allowable Unauthorized -(11)

PRINCIPAL PRODUCERSCity of Industry 306.0 0.0 0.0 306.0 0.0 612.0 300.0 0.0 0.0 0.0 6.0 306.0Successor Agency to Industry Urban-Development Agency 306.0 0.0 0.0 306.0 0.0 612.0 300.0 0.0 0.0 0.0 6.0 306.0Royal Vista Golf Course 306.0 NA1/ 31.6 0.0 31.6 306.0 400.0 2/ 94.0 30.6 63.4 0.0 0.0Rowland Water District 306.0 240.6 0.0 546.9 0.0 1,093.5 200.0 0.0 0.0 0.0 346.9 546.6Walnut Valley Water District 306.0 116.9 0.0 306.0 0.0 728.9 700.0 0.0 0.0 0.0 0.0 28.9Subtotal 1,530.0 357.5 31.6 1,464.9 0.0 3,352.4 1,900.0 94.0 30.6 63.4 358.9 1,187.5BASIN CLEAN-UP PUMPINGBDP Corporation NA NA NA NA NA NA 60.0 NA NA NA NA NAMalibu Grand Prix 3/ --- --- --- --- --- --- --- --- --- --- --- ---Hamilton Standard Controls 4/ --- --- --- --- --- --- --- --- --- --- --- ---Subtotal 60.0

GRAND TOTAL 1,530.0 357.5 31.6 1,464.9 0.0 3,352.4 1,960.0 94.0 30.6 63.4 358.9 1,187.5

1/ Not Applicable.2/ Due to sale of Airey Property, 12 acre-feet production from Airey well will not be attributed to Royal Vista Golf Course, formerly Los Angeles Royal Vista Golf Course.3/ CRWQCB has accepted a closure plan from MGP which is no longer producing groundwater.4/ United Technologies filed a Closure Report on 11/17/2000 and it was approved by CRWQCB on 1/9/2001.

Lost Carry-

over (4)-(7)

Carry-over from

Return Flow

Credit

Excess Pumping

Pumpers

(8) (9) (10)(7)(6)

Leases

Pumper's Share of


23121

EstimatedReturnFlow

CreditPumper's ForShare of Estimated Estimated Water

Operating Excess Carry- Imported Safe Pumping Over into the AnnualYield in from Basin in Pumping

2018-19 2017-18 2017-18 2017-181/ Right2/ Pumpers (AF) (AF) (AF) (AF) (AF)

PRINCIPAL PRODUCERSCity of Industry 306 0 306 0.0 612Successor Agency to Industry Urban-Development Agency 306 0 306 0.0 612Royal Vista Golf Course 306 94 0 NA3/ 212Rowland Water District 306 0 547 250 1,103Walnut Valley Water District 306 0 29 150 485GRAND TOTAL 1,530 94 1,188 400 3,024

1/ Estimated from 2014-15 sales of imported Metropolitan water and reclaimed water.2/ Annual Pumping Right = Pumper's Share of OSY - Excess Pumping + Carry-over + Return Flow Credit3/ Not Applicable.

ESTIMATE OF ANNUAL PUMPING RIGHT AT AN OPERATINGTable 11

SAFE YIELD OF 1,530 ACRE-FEET FOR FISCAL YEAR 2018-19

24122

070901

Item AmountMeetings 8,000.00$ Preparations for Meetings 6,000.00$ Report Preparation Operating Safe Yield and Operating Budget 8,500.00$ Annual 8,500.00$ Office Expenses Engineering 12,180.00$ Secretarial 2,500.00$ Supplies/Printing/Postage 750.00$ Banking 100.00$ Legal Fees 17,500.00$ Meter Testing 2,385.00$ SGMA Legislation 10,000.00$

76,415.00$

Estimated Carry-over from 2017-18 Operating Budget 27,000.00$ Total Funds Required for 2018-19 Operating Budget 49,415.00$

City of Industry 8,605.05$ Successor Agency to Industry Urban Development Agency 8,605.05$ Royal Vista Golf Course 4,941.50$ Rowland Water District 15,370.99$ Walnut Valley Water District 11,892.41$ Total 49,415.00$

Tentative Operating Budget 2018-19Puente Basin Watermaster

Allocation of Tentative Operating Budget to Principal Parties

123

ProducerPumping Right

in 2017-18

Percentage of Pumping

Right

Allocation of Operating

BudgetCity of Industry 306.0 19% 8,605.05$ Successor Agency to Industry Urban Development Agency 306.0 19% 8,605.05$ Rowland Water District 546.6 35% 15,370.99$ Walnut Valley Water District 422.9 27% 11,892.41$ Subtotal 1,581.5 100% 44,473.50$ Royal Vista Golf Course (Allocation of Budget at 10%) 306.0 4,941.50$ TOTAL 1,887.5 49,415.00$

ALLOCATION OF THE OPERATING BUDGET FY 2018-19PUENTE BASIN WATERMASTER

124


070901

Item

Operating Budget 2017-18

Recorded Bills July 1, 2017 to March 31, 2018

Estimated Bills for Remainder

of Year

Estimated Total Bills

2017-18

Estimated Operating

Budget 2018-19

Meetings 8,000.00$ 3,040.30$ 3,500.00$ 6,540.30$ 8,000.00$ 1/

Preparations for Meetings 6,000.00$ 4,930.00$ 3,000.00$ 7,930.00$ 6,000.00$ 2/

Report Preparation Operating Safe Yield and Operating Budget 8,500.00$ 6,525.00$ 1,975.00$ 8,500.00$ 8,500.00$ Annual 8,500.00$ 8,482.50$ 8,482.50$ 8,500.00$ Office Expenses Engineering 22,180.00$ 3,770.00$ 5,100.00$ 8,870.00$ 12,180.00$ 3/

Secretarial 2,500.00$ 790.74$ 1,000.00$ 1,790.74$ 2,500.00$ Supplies/Printing/Postage 750.00$ 662.31$ 85.00$ 747.31$ 750.00$ Banking 100.00$ -$ -$ -$ 100.00$ Legal Fees 17,500.00$ 4,575.00$ 4,000.00$ 8,575.00$ 17,500.00$ Meter Testing 2,385.00$ -$ 2,385.00$ 2,385.00$ 2,385.00$ 4/

SGMA Legislation -$ -$ -$ -$ 10,000.00$ TOTAL 76,415.00$ 32,775.85$ 21,045.00$ 53,820.85$ 76,415.00$

1/ Estimated at 4 meetings per year at 3 hours per meeting for Watermasters and staff.2/ Estimated at 4 meetings per year at 2 hours preparation time per meeting for Watermasters plus staff preparation time for meetings.3/ Estimated at 7 hours per month at engineering staff rate of $145.00.4/Nine meter tests at $265 each.

Puente Basin Watermaster ExpensesFY 2017-18

125

WALNUT VALLEY WATER DISTRICT WATER SUPPLY AND CONSERVATION UPDATE

May 21, 2018

A

B

C

Water Use – Water usage for April 2018 was 1,436.169 acre feet, a decrease of 2.14% compared to April 2017 and a decrease of 15.53% from April 2013. The average inflow into the system during the month was approximately 24.18 cfs (10,852.51 gallons per minute). Recycled Water Use - During the month of April the recycled water system delivered 1,714,042 G.P.D., a decrease of 14.39% compared to the use in April 2017. Of the recycled water delivered, 45.13% was from the District wells and no water was transferred from potable Make-up water. Production Report – attached are: FY 2017-18 Purchased Water Projections (Two total) 2017-2018 Climate Summary Monthly Consumption Versus the 2013 Baseline Year (Two total)

Exhibits

126

5/16/2018

Month PWR PBWA Spread Total Budget Low High 2013 Total (AF) % Alloc.July 875.300 1,074.655 0.000 1,949.955 1,877.000 1,527.024 2,184.968 2,148.674 8.03% 1,949.955 8.03%August 788.900 1,082.264 0.000 1,871.164 1,909.000 1,617.596 2,023.125 2,308.733 7.70% 3,821.119 15.73%September 738.800 1,043.728 0.000 1,782.528 1,771.000 1,427.217 1,943.265 2,063.590 7.34% 5,603.647 23.07%October 822.100 983.321 0.000 1,805.421 1,619.000 1,430.902 1,845.326 1,858.071 7.43% 7,409.068 30.51%November 724.400 756.092 0.000 1,480.492 1,364.000 1,297.870 1,514.687 1,569.129 6.10% 8,889.560 36.60%December 741.100 779.403 0.000 1,520.503 1,075.000 1,010.288 1,157.768 1,401.170 6.26% 10,410.063 42.86%January 759.500 530.082 0.000 1,289.582 1,113.000 997.971 1,601.460 1,155.838 5.31% 11,699.645 48.17%February 672.900 566.913 0.000 1,239.813 1,057.000 1,063.858 1,227.712 1,123.300 5.10% 12,939.458 53.28%March 707.200 269.091 0.000 976.291 1,210.000 1,125.230 1,429.205 1,495.700 4.02% 13,915.749 57.29%April 765.800 670.369 0.000 1,436.169 1,418.000 1,475.525 1,590.074 1,700.263 5.91% 15,351.918 63.21%May 0.000 1,565.000 1,357.939 1,990.426 1,903.815 0.00% 0.00%June 0.000 1,693.000 1,485.027 2,015.109 2,081.560 0.00% 0.00%

Total 7,596.000 7,755.918 0.000 15,351.918 17,671.000 15,816.447 20,523.125Remaining Projected Purchases 3,258.000 2,842.966 4,005.535

18,609.918 18,194.884 19,357.453

2014 2015 2016

Tier I Purchase Projection24,288.00 24,288.00 24,288.00

Purchases through December 2018 18,172.341 18,172.341 18,172.3416,115.659 6,115.659 6,115.659

Total Projected Purchases

Year of Occurrence

Tier I Allocation

WALNUT VALLEY WATER DISTRICTFiscal Year 2017-18 Purchased Water Projections

July 1, 2017 - June 30, 2018

Actual Purchases (AF) Projected Purchases (AF) % Allocation

Cumulative

127

5/16/2018

July August September October November December January February March April May JuneBudget 1,877.000 1,909.000 1,771.000 1,619.000 1,364.000 1,075.000 1,113.000 1,057.000 1,210.000 1,418.000 1,565.000 1,693.000Low 1,527.024 1,617.596 1,427.217 1,430.902 1,297.870 1,010.288 997.971 1,063.858 1,125.230 1,475.525 1,357.939 1,485.027High 2,184.968 2,023.125 1,943.265 1,845.326 1,514.687 1,157.768 1,601.460 1,227.712 1,429.205 1,590.074 1,990.426 2,015.109FY 2017-18 1,949.955 1,871.164 1,782.528 1,805.421 1,480.492 1,520.503 1,289.582 1,239.813 976.291 1,436.169 0.000 0.000

0.000

500.000

1,000.000

1,500.000

2,000.000

2,500.000

ACRE

-FEE

T

Fiscal Year 2017-18 Purchased Water Projections

128

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

25

35

45

55

65

75

85

95

105

115

125

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18

Inch

es o

f Rai

n

Degr

ees F

ahre

nhei

t

Month

Walnut Valley Water District2017-2018 Climate Summary

2017-2018 Rain Fall High Temperature Low Temperature Previous Year Rain Fall

129

WALNUT VALLEY WATER DISTRICTCONSUMPTION DATA - CURRENT YEAR VERSUS 2013 BASELINE

16,106 26,586 18,213 27,223 29,172 14,064

442,614 421,210

-

50,00 0

100,0 00

150,0 00

200,0 00

250,0 00

300,0 00

350,0 00

400,0 00

450,0 00

500,0 00

Feb-13 Feb-18 Mar-1 3 Mar-1 8 Apr-13 Apr-18 201 3 17-18

Irrigation Consumption Versus 2013 Baseline

-

500,0 00

1,000 ,000

1,500 ,000

2,000 ,000

2,500 ,000

3,000 ,000

Mar- 13 Mar- 18 Apr-13 Apr-18 2013 17- 18

Residential Tiers Versus 2013 Baseline

Tier I Tier II Tier III

501,233 502,805 561,694 454,103 645,039 470,375

7,084,559

6,202,761

-

1,000 ,000

2,000 ,000

3,000 ,000

4,000 ,000

5,000 ,000

6,000 ,000

7,000 ,000

8,000 ,000

Feb-13 Feb-18 Mar-1 3 Mar-1 8 Apr-13 Apr-18 201 3 17-18

YTD Consumption Versus 2013 Baseline Year

130

Walnut Valley Water DistrictMonthly Consumption Versus 2013 Baseline Year

Consumption/Water Sales

User Class Feb-13 Feb-18 Change % Change Mar-13 Mar-18 Change % Change Apr-13 Apr-18 Change % Change 2013 YTD FY 17-18 Change % ChangeCOG 13,938 16,525 2,587 19% 14,911 18,692 3,781 25% 21,592 8,852 (12,740) -59% 347,977 274,790 (73,187) -21%COM 50,657 57,145 6,488 13% 57,610 54,175 (3,435) -6% 51,628 49,180 (2,448) -5% 743,414 697,009 (46,405) -6%IND 10,261 8,755 (1,506) -15% 9,765 9,530 (235) -2% 10,119 8,457 (1,662) -16% 115,984 102,782 (13,202) -11%MUL 65,729 53,199 (12,530) -19% 54,291 54,195 (96) 0% 74,331 46,848 (27,483) -37% 697,196 641,567 (55,629) -8%RES 360,648 367,181 6,533 2% 425,117 317,511 (107,606) -25% 487,369 357,038 (130,331) -27% 5,179,988 4,486,613 (693,375) -13%

501,233 502,805 1,572 0% 561,694 454,103 (107,591) -19% 645,039 470,375 (174,664) -27% 7,084,559 6,202,761 (881,798) -12%

User Class Feb-13 Feb-18 Change % Change Mar-13 Mar-18 Change % Change Apr-13 Apr-18 2013 YTD FY 17-18 Change % ChangeCOG 5,062 9,998 4,936 98% 6,415 11,418 5,003 78% 11,988 2,406 (9,582) -80% 210,786 183,270 (27,516) -13%COM 9,632 15,286 5,654 59% 10,975 14,546 3,571 33% 15,406 10,650 (4,756) -31% 212,854 222,037 9,183 4%IND 1,222 1,198 (24) -2% 670 1,147 477 71% 1,562 896 (666) -43% 16,479 14,390 (2,089) -13%RES 190 104 (86) -45% 153 112 (41) -27% 216 112 (104) -48% 2,495 1,513 (982) -39%

16,106 26,586 10,480 65% 18,213 27,223 9,010 49% 29,172 14,064 (15,108) -52% 442,614 421,210 (21,404) -5%

Residential Tier I Tier II Tier III Total Tier I Tier II Tier III Total Tier I Tier II Tier III Total Tier I Tier II Tier III Total2013 232,969 105,818 21,861 360,648 252,300 143,295 29,522 425,117 257,883 183,967 45,519 487,369 2,600,041 1,993,292 586,655 5,179,988

2017/18 233,244 108,761 25,176 367,181 219,642 80,348 17,521 317,511 232,462 103,658 20,918 357,038 2,483,897 1,566,208 436,508 4,486,613 Difference 275 2,943 3,315 6,533 (32,658) (62,947) (12,001) (107,606) (25,421) (80,309) (24,601) (130,331) (116,144) (427,084) (150,147) (693,375) % Change 0% 3% 15% 2% -13% -44% -41% -25% -10% -44% -54% -27% -4% -21% -26% -13%

Water PurchasesJuly August September October November December January February March April Total

2013 2,148.67 2,308.73 2,063.59 1,858.07 1,569.13 1,401.17 1,155.84 1,123.30 1,495.70 1,700.26 16,824.47 FY 17-18 1,949.96 1,879.21 1,782.53 1,805.42 1,480.49 1,520.50 1,289.58 1,239.81 976.29 1,436.17 15,359.96

Difference (198.71) (429.53) (281.06) (52.65) (88.64) 119.33 133.74 116.51 (519.41) (264.09) (1,464.50) % Change -9% -19% -14% -3% -6% 9% 12% 10% -35% -16% -9%

Apr-18

RESIDENTIAL

Feb-18

IRRIGATION

Mar-18

IRRIGATION

RESIDENTIAL

YTD (FY 2017-18)

YTD IRRIGATION

YTD RESIDENTIALRESIDENTIAL

131

WY

CO

UT

AZ NM

This report is produced by the Water Resource Management and contains information from various federal, state, and local agencies.

The Metropolitan Water District of Southern California cannot guarantee the accuracy or completeness of this information.

Readers should refer to the relevant state, federal, and local agencies for additional or for the most up to date water supply information.

Reservoirs, lakes, aqueducts, maps, watersheds, and all other visual representations on this report are not drawn to scale.

http://www.mwdh2o.com/WSCR

This report is best printed double sided on legal size paper (8.5" x 14") and folded in quarters

1.8

1.1 1.0

1.7

2.4 2.7

2.3

1.2 0.9 1.3 1.3

0

1

2

3

4

Mill

ion

Ac

re-F

ee

t

Calendar Year

MWD Storage Reserve Levels

Potential Put to Storage

Storage Balance

Emergency Storage

250

350

450

550

650

750

850

Th

ou

san

d A

cre

-Fe

et

Diamond Valley Lake Storage

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Mill

ion

Ac

re-F

ee

t

Lake Shasta Reservoir Storage

2016-2017 2017-2018

0

5

10

15

20

25

30

35

40

45

50

Wa

ter

Co

nte

nt

(in

)

Southern Sierra Snowpack

2016-2017 2017-2018 Normal

89%

82%

2018 SWP Allocation

573,450 AF

30% of Table A

Flip Over for CRA Data Turn page for more SWP Data

2.48 MAF OROVILLE

288 TAF CASTAIC

720 TAF

DVL

TOT: 1.69 MAF SAN LUIS

SWP: 883 TAF

70%

89%

Average EOM

%

Capacity

Current Storage

(% Capacity)

%

As of: 05/09/2018

Turn page for more CRA Data Flip Over for SWP

12.67 MAF POWELL

10.28 MAF

MEAD

1083.23 FT

39%

52%

2018 Colorado River

894,140 AF

72% of full CRA

0

10

20

30

72%

16.0"

225 TAF less in storage

than this time last

year

Peak: 14.6 in.

56% of normal

April 1

0

6

12

18

32%

WY Avg

LA: 4.6"

0

6

12

18

36%

WY Avg

SD: 3.7"

Record Low: 587 TAF (08/01/1977)

810 TAF

325 TAF

2.04 MAF

3.5 MAF

24.3 MAF

26.1 MAF

% Normal

WY to Date

WY Avg

%

Rainfall to Date (in)

Capacity: 4.55 MAF

Capacity: 810 TAF

Does not include storage

withdrawals

Water Supply Conditions

Report

Water Supply Conditions

Report

As of: 05/09/2018

22 TAF more in

storage than this

time last year

1.2

72% Runoff Forecast

(WY)

73% Runoff Forecast

(Apr-Sep)

Peak Snowpack % of Normal

April 1

Northern Sierra

50%


April 1

Southern Sierra 56%

Runoff

Forecast WY

Peak Snowpack % of

Normal April 1

%

%


April 1

51% Runoff Forecast

(WY)

74%

Upper Colorado

River Basin

0153045607590

81%

WY Avg

8 STA: 38.8"

0

15

30

45

60

75

78%

WY Avg

5 STA: 29.4"

Highlights

Statewide snowpack peaked at 58% of April 1 normal

Sacramento River Runoff forecast is 72% of normal

Snowpack in the Upper Colorado River Basin peaked at

74% of normal

Lake Powell inflow forecast is at 51% of normal

Record Low

132

Colorado River Resources As of: 05/09/2018

0

5

10

15

20

25

30

35

40

45

50

Wa

ter

Co

nte

nt

(in

)

Northern Sierra Snowpack

2016-2017 2017-2018 Normal

28%

168%

8%

79%

21%

166%

126%

5% 0

4

8

12

16

Pre

cip

ita

tio

n (

in)

8 Station Index Precip

Average Monthly Precip Actual Precip to Date

0

5

10

15

20

25

Wa

ter

Co

nte

nt

(in

)

Upper Colorado Basin Snowpack

2016-2017 2017-2018 Normal

0.0

0.3

0.6

0.9

1.2

1.5

1.8

2.1

Mill

ion

Ac

re-F

ee

t

San Luis Reservoir Storage

Total Current SWP Current

Total Last Year

SWP Last Year

8

10

12

14

16

18

20

Mill

ion

Ac

re-F

ee

t

Lake Powell Storage

8

10

12

14

16

18

Mill

ion

Ac

re-F

ee

t

Lake Mead Storage

Surplus

Shortage Trigger

18%

96%

3%

58%

18%

251%

106%

0% 0

4

8

12

16

Pre

cip

ita

tio

n (

in)

5 Station Index Precip


47%

70%

49%

76%

93%

78% 81%

33%

0

2

4

6

Pre

cip

ita

tio

n (

in)


Upper Colorado Basin Precip

Lake Mead Shortage/Surplus Outlook

Likelihood based on results from the January 2018 USBR MTOM CRSS model run.

38.8 in.

Water Year

to Date

2.29 MAF more in

storage than this

time last year

0

5

10

15

20

25

30

35

40

45

Mill

ion

Ac

re-F

ee

t

Water Year

Sacramento River Runoff

0

3

5

8

10

13

15

18

Mill

ion

Ac

re-F

ee

t

Water Year

Powell Unregulated Inflow

Long Term

Average

Long Term

Average

Colorado River Resources As of: 05/09/2018

29.4 in.

Water Year

to Date

2018 2019 2020 2021 2022

Shortage 0% 17% 49% 58% 63%

Surplus 0% 0% 1% 5% 8%160 TAF less in SWP

storage than this

time last year

Other SWP Contract Supplies for 2018 (AF)

Transfer/Exchanges 13,500

Article 21 TBD

Pool A/B (Purchased) TBD

Carryover Supplies 297,000

16.0 in.

Water Year

to Date

67 TAF less in storage

than this time last

year

Peak: 11.6 in

74% of normal

April 1

Peak: 13.8 in.

50% of normal

April 1

2017 Colorado River Ag Use

WY 2018

of normal (May 2018 Forecast)

Capacity: 3.5 MAF Capacity: 24.3 MAF

Capacity: 26.1 MAF Capacity: 2.04 MAF

51%

State Water Project Resources As of: 05/09/2018

WY 2018

of normal (May 2018 Forecast)

72%

SWP Capacity 1.06 MAF

Total Capacity 2.04 MAF

2.75

2.85

2.95

3.05

3.15

J F M A M J J A S O N D

Mill

ion

Ac

re-F

ee

t

Date of Forecast

IID/CVWD (QSA Priority 3a)

380

400

420

440

460

J F M A M J J A S O N D

Tho

usa

nd

A

cre

-Fe

et

Date of Forecast

PVID/Yuma (QSA Priority 1 & 2)

+20

0

-20

-40

Re

lativ

e to

QSA

Thre

sho

ld

+40

0.8

1.3

1.8

2.3

2.8

3.3

3.8

Mill

ion

Ac

re-F

ee

t

Oroville Reservoir Storage

2016-2017 2017-2018

Enhanced Flood Pool Original Flood Boundaries

316 TAF less in

storage than this

time last year

133

table of contents agenda 3 · update: long-term water conservation - ab 1668 and sb 606 update:...

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