AGENDA SANTA MARGARITA WATER DISTRICT BOARD OF DIRECTORS BOARD MEETING JANUARY 20, :30 A.M., BOARD ROOM, DISTRICT OFFICE

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1 AGENDA SANTA MARGARITA WATER DISTRICT BOARD OF DIRECTORS BOARD MEETING JANUARY 20, :30 A.M., BOARD ROOM, DISTRICT OFFICE ANTONIO PARKWAY, RANCHO SANTA MARGARITA, CALIFORNIA Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities, as required by Section 202 of the Americans with Disabilities Act of Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to Kelly Radvansky, Secretary to the Board of Directors, at (949) at least 48 hours before the meeting if possible. ITEMS DISTRIBUTED TO THE BOARD LESS THAN 72 HOURS PRIOR TO MEETING Pursuant to Government Code section , non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District s business office located at Antonio Parkway, Rancho Santa Margarita, California 92688, during regular business hours. When practical, these public records will also be made available on the District s Internet Web Site, accessible at 1. PLEDGE OF ALLEGIANCE 2. PUBLIC FORUM Persons wishing to address the Board of Directors on matters not listed on the Agenda may do so at this time. Request To Be Heard forms are available at the entrance to the Board Room. Comments are limited to three minutes, unless further time is granted by the Presiding Officer. Please submit the form to the Recording Secretary prior to the beginning of the meeting. Those wishing to address the Board of Directors on any item listed on the Agenda should submit a Request To Be Heard form to the Recording Secretary before the Presiding Officer announces that agenda item. Your name will be called to speak at that time. President, Charles T. Gibson Vice President, Justin McCusker Engineering and Operations Committee Chair, Saundra F. Jacobs Water Quality and Innovation Committee Chair, Betty H. Olson Finance and Administration Committee Chair, Charley Wilson General Manager, Daniel R. Ferons

2 Board Meeting Agenda January 20, 2017 Page 2 3. CONSENT CALENDAR 3.1 Consideration and Action on the December 7, 2016 and December 23, 2016 Board Meeting Minutes... Page 5 Recommendation: Approve the December 7, 2016 and December 23, 2016 Board Meeting Minutes. 3.2 Consideration and Action on Approval of Expenses for President Gibson s Attendance at Association of California Water Agencies Federal Affairs Committee Meeting in Sacramento, California on January 27, Page 20 Recommendation: Approve expenses for President Gibson to attend the ACWA Federal Affairs Committee meeting. 3.3 Consideration and Action on Acceptance of Water and Sewer Facilities for Tract Lots 28 and 29 Located in the Sendero Development in I.D. No. 4E; the Release of Water and Sewer Bonds; and Adoption of Resolution No Page 21 Recommendation: Adopt Resolution ; Accepting the water and sewer facilities constructed in conjunction with the subject tract and authorizing the Santa Margarita Water District to release water and sewer bonds for the subject tract. 3.4 Consideration and Action on Acceptance of Water and Sewer Facilities for Tract Lots 30 and 31 Located in the Sendero Development in I.D. No. 4E; the Release of Water and Sewer Bonds; and Adoption of Resolution No Page 31 Recommendation: Adopt Resolution No ; Accepting the water and sewer facilities constructed in conjunction with the subject tract and authorizing the Santa Margarita Water District to release water and sewer bonds for the subject tract. 3.5 Consideration and Action on the Purchase of a 10" Sewer Bypass Pump... Page 41 Recommendation: Authorize purchase of high capacity sewer bypass pump from Rain for Rent in the amount of $135, PRESENTATIONS 4.1 Cadiz Project Update.

3 Board Meeting Agenda January 20, 2017 Page 3 5. ACTION ITEMS RECOMMENDED BY COMMITTEE 5.1 Consideration and Action on Approval to Award Contract to Shoffeitt Pipeline for the Construction of the Recycled Water Zone E Pipeline Extension to the Skyridge Conversion Project, C-1674B... Page 45 Recommendation: Authorize awarding a contract to Shoffeitt Pipeline in the amount of $420, for the Recycled Water Zone E Pipeline Extension to the Skyridge Conversion Project and the installation of the force main in the parallel alignment. 6. ACTION ITEMS 6.1 Consideration and Action on Scheduling of Future Agenda Items; and Re-Cap of the December 23, 2016 District Board Meeting... Page 50 Recommendation: Approve items for inclusion on future agendas of the District. 7. GENERAL COUNSEL REPORT 8. INFORMATION ITEMS (PRESENTED UPON REQUEST) 8.1 General Manager Report... Page Capital Improvement Program... Page Engineering Update... Page Operations Update... Page External Affairs Activity Report... Page Customer Relations Update... Page Water Use Efficiency Tracking Update... Page South County Update... Page Directors Reports of Outside or Other Meeting/Events (verbal or written reports may be provided and shall be included in the record/minutes).

4 Board Meeting Agenda January 20, 2017 Page 4 9. CLOSED SESSION 9.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section: Property: Real Estate related to Trampas Canyon, approximately 1.0 mile south of Ortega Highway (SR-74) and 0.5 mile west of Christianitos Road (a private ranch road with an existing SMWD easement) in unincorporated Orange County. The Project encompasses approximately 277 acres in Planning Area 5 of the Ranch Plan Planned Community. Agency Negotiators: Daniel R. Ferons SMWD General Manager Don Bunts SMWD Deputy General Manager Negotiating Parties: Santa Margarita Water District and RMV LLC Under Negotiation: Terms for Proposed Acquisition of Property

5 Santa Margarita Water District Board Meeting Minutes Meeting attendees: President Charley Wilson Vice- President Charles T. Gibson Director Justin McCusker Arrived at 7:40 p.m. Director Saundra F. Jacobs Dan Ferons Don Bunts Joyce Crosthwaite Tricia Butler Rich Kissee Erica Castillo Dustin Navarro Nate Adams Jim Leach Nicole Stanfield Daniel Peterson Kelly Radvansky Scott Smith Roger Butow David Collins General Manager/SMWD Deputy General Manager/SMWD Assistant to the General Manager/SMWD Chief Engineer/SMWD Operations Manager/SMWD Controller/SMWD IT Manager/SMWD Water Use Efficiency Administrator/SMWD Director of External Affairs/SMWD Public Information Manager/SMWD Administrative Analyst/SMWD Board Secretary/SMWD General Counsel/Best Best & Krieger Clean Water Now Rate Payer Absent: Date: December 7, 2016 Time: 7:00 PM Director Betty H. Olson Agenda Items Board Action: Follow-up: Staff Responsible: Agenda Item 1. Pledge of Allegiance Kelly Radvansky, Board Secretary, led the Pledge of Allegiance. Agenda Item 2. Public Forum Roger Butow, Clean Water Now, addressed the Board regarding the formation of the Regional Board s subcommittees. Page 5

6 Board of Directors - Minutes December 7, 2016 Page 2 Agenda Item 3.1 Consideration and Action on the November 2, 2016 Board Meeting Minutes Motion: Approve the November 2, 2016 Board Meeting Minutes. Agenda Item 3.2 Consideration and Action on October 2016 Business Expense Report/Board of Directors Compensation Motion: Approve the expense report and Board of Directors compensation. Agenda Item 3.3 Consideration and Action on District Bills for Payment Motion: Approve the District s Bills. Agenda Item 3.4 Consideration and Action on Approval of Expenses for Vice-President Charles Gibson s Attendance at Association of California Water Agencies Annual Washington D.C. Conference in Washington D.C. on February 28 March 2, 2017 Motion: Approve expenses for Director Gibson to attend the ACWA 2017 Annual Washington D.C. Conference. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Page 6

7 Board of Directors - Minutes December 7, 2016 Page 3 Agenda Item 3.5 Consideration and Action on Acceptance of Release of Replacement Bond for Tract Located North of Avenida Talega between East and West Camino Viento Fuerte in Talega in I.D. No. 7 and Adoption of Resolution No Motion: Adopt Resolution No authorizing the Santa Margarita Water District to release the Replacement Bond for the subject tract. Agenda Item 3.6 Consideration and Action on Adjustment of Appurtenances, Valves and Manhole Covers in Conjunction with the Ladera Ranch Paving and Street Rehab Projects Motion: Authorize payment to the R.J. Noble Company in the amount of $111,350. Agenda Item 3.7 Consideration and Action on Resolution No ; Resolution of the Board of Directors of Santa Margarita Water District Amending the Santa Margarita Water District s Pay Schedule Effective December 7, 2016 Motion: Adopt Resolution No Agenda Item 3.8 Consideration and Action on the Contract with Priority Building Services for Janitorial Maintenance Services for the Administration Headquarters, Warehouse, Chiquita Wastewater Treatment Plant, and 3A Plant Motion: Authorize entering into a three-year contract with Priority Building Services in the amount of $239,700 with an option for an additional one-year renewal for janitorial maintenance services. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Page 7

8 Board of Directors - Minutes December 7, 2016 Page 4 Agenda Item 3.9 Consideration and Action on State Water Resources Control Board Drinking Water Division Waiver Applications for the Third Period of the Third Compliance Cycle for Drinking Water Permits held by the District Motion: Authorize submittal of waiver applications for asbestos testing. Agenda Item 3.10 Consideration and Action on Policy for Development of Energy Storage Motion: Authorize negotiations with vendors for development of an energy storage project. Agenda Item 4.1 Santa Margarita Water District SustainaBlue Water Heroes Nate Adams, Water Efficiency Administrator announced Cypress Point HOA in Mission Viejo as the Water Hero for the month; they installed $11k in Smart timers and achieved a 32% reduction in water usage compared to their usage in Agenda Item 5.1 Public Hearing and Consideration and Action on Adoption of Resolution No Revision of Encroachment Permit Fees and Wastewater Discharge Permit Fees The Chair opened the public hearing at 7:13 p.m. Don Bunts, Deputy General Manager, explained the increase in fees was necessary to recover costs for staff time for review and processing of the applications. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Director Jacobs moved Agenda Items together; Director Gibson seconded; Directors Jacobs, Gibson, and Wilson voted yes; Directors McCusker and Olson were absent; all items were approved. Director Gibson moved Agenda Item 5.1; Director Jacobs seconded; Directors Gibson, Jacobs, and Wilson voted yes; Directors McCusker and Olson were absent; the item was approved. The fees were reviewed by the District s legal counsel and are in concurrence with state code. Mr. Bunts confirmed, no comments were received. Page 8

9 Board of Directors - Minutes December 7, 2016 Page 5 The Chair closed the public hearing at 7:16 p.m. Motion: Adopt Resolution No revising the Permit Fee Schedule. Agenda Item 6.1 Consideration and Action on Providing Comments on the State of California Long- Term Framework to Make Water Conservation a California Way of Life Dan Ferons, General Manager, explained the concept of Executive Order B was to build on the success of the mandatory cutback, by implementing policies that would retain the conservation and further it along. The long-term framework is focused on water use efficiency, setting targets for individual agencies, and only strengthening local drought resilience by reducing the amount of water used. Director McCusker moved Agenda Item 6.1; Director Jacobs seconded; Directors McCusker, Jacobs, Gibson and Wilson voted yes; Director Olson was absent; the item was approved. Mr. Adams reported a future landscape work group meeting looking at details of the long term framework, and that feedback will be provided to the Department of Water Resource. Mr. Adams also noted the opportunity to create and shape with the movement towards new regulations. A discussion ensued and suggestions were provided by the Board regarding the submission of a comment letter. It was suggested that the District understand the timing and resources available during this time, provide a simple and high level message, and to be clear on how to implement changes. Director McCusker joined the meeting at 7:40 p.m., during consideration of Agenda Item 6.1. Mr. David Collins addressed the Board regarding authority on conservation. Mr. Roger Butow addressed the Board regarding the long-term framework, state unfunded mandates, and noted he concurs with the District s comment letter, and Clean Water Now will submit a comment letter. Motion: Authorize the District to send a comment letter and to coordinate with other agencies and our stakeholders. Page 9

10 Board of Directors - Minutes December 7, 2016 Page 6 Agenda Item 6.2 Consideration and Action on Selection of Board Officers for 2017; Appointments to the Committees and Joint Powers Authorities; and Approval of the Regular Board Meeting Dates for 2017 President Wilson passed the gavel to the new Board President, Charles T. Gibson as the rotation of District officers was approved. The new officers are as follows: President Charles T. Gibson Vice-President- Justin McCusker EOC Chair- Saundra F. Jacobs WQI Chair- Betty H. Olson FAC Chair- Charley Wilson The committee assignments were discussed; and the following were approved: Finance and Administration Committee (FAC): Chair: Charley Wilson Member: Charles T. Gibson Alternate: Justin McCusker Engineering and Operations Committee (EOC): Chair: Saundra F. Jacobs Member: Betty H. Olson Alternate: Justin McCusker Director Jacobs noted that she thought Director Olson would like to serve on the Engineering and Operations Committee; Mr. Ferons confirmed Director Olson s interest. Director McCusker offered to serve as an alternate on the committee. Director Wilson commended staff on the current structure of the committee compared to where it started. He noted the committee is functioning as an operation and maintenance check and balance; with minimal heavy lifting and no delving into operational opportunities. Motion #1: Director McCusker moved the first motion; Director Jacobs seconded; Directors McCusker, Jacobs, Wilson, and Gibson voted yes; Director Olson was absent; the motion was approved. Motion #2: Director Wilson moved the second motion; Director Jacobs seconded; Directors Wilson, Jacobs, McCusker, and Gibson voted yes; Director Olson was absent; the motion was approved. Motion #3: Director Wilson moved the third motion; Director McCusker seconded; Directors Wilson, McCusker, Jacobs, and Gibson voted yes; Director Olson was absent; the motion was approved. Water Quality and Innovation Committee (WQI): Chair: Betty H. Olson Member: Charles T. Gibson Alternate: Saundra F. Jacobs There were no changes to the Joint Powers Authorities (JPA). Director Jacobs suggested a future discuss on JPA s. Page 10

11 Board of Directors - Minutes December 7, 2016 Page 7 Motion: (1) Rotate District Officers consistent with past practice. (2) Approve the committee structure as presented, with the rotation of Director Olson on the EOC and Director McCusker as the alternate; and no changes to the JPA s. (3) Approve the regular Board meeting dates for 2017; cancel the meeting on January 4, Agenda Item 6.3 Consideration and Action on Scheduling of Future Agenda Items; and Re-Cap of the November 18, 2016 District Board Meeting Director Jacobs requested a discussion on South Orange County Wastewater Authority and Santiago Aqueduct Commission for a future agenda. Motion: For a future agenda include a discussion on South Orange County Wastewater Authority and Santiago Aqueduct Commission. Agenda Item 7. General Counsel Report Director McCusker moved the motion; Director Jacobs seconded; Directors McCusker, Jacobs, Wilson, and Gibson voted yes; Director Olson was absent; the motion was approved. Information Item Scott Smith, General Counsel, reported the County Board of Supervisors has currently pulled fair market rents for crossings of their right of ways and easements from their agenda and are taking the item under submission. Mr. Smith also noted a City of San Jose vs. Superior Court case addressing city council member s use of personal s and cell phones and disclosure under the Public Records Act. Agenda Item 8.1 Technology Enterprise Resource Plan (TERP) Program Update Dustin Navarro, IT Manager provided an update on the implementation of the finance and customer service systems; and on the GIS and CMMS systems for the TERP Program. Information Item Include a program update in the District s public newsletter. Dustin Navarro David Collins, rate payer, asked Mr. Navarro if there are GIS features and data currently available online; Mr. Navarro confirmed there is. Director Gibson suggested including progress of the program in the District s public newsletter. Page 11

12 Board of Directors - Minutes December 7, 2016 Page 8 Agenda Item 8.2 San Juan Watershed Project Update Information Item Mr. Ferons noted the Notice of Preparation of the draft EIR was sent out on December 1 st. Mr. Bunts noted the Public Scoping meeting to be held on January 12, 2017 at 6pm in San Juan Capistrano; and a future meet and greet walk through of the project with public officials. Director Jacobs requested that MWDOC be invited to the meet and greet. Roger Butow, Clean Water Now, addressed the Board regarding an NGO stand-alone tour, and offered to assist with facilitating the tour. Agenda Item 8.3 District Participation in the California Asset Management Program ( CAMP ) Pool Program Erica Castillo, Controller, explained the CAMP account, and the benefit to the District. Agenda Item 8.4 Directors Reports of Outside or Other Meeting/Events (verbal or written reports may be provided and shall be included in the record/minutes). Information Item Information Item Director McCusker noted an event he attended at Saddleback College in the Geography Department, looking at an analysis of the geographic issues surrounding water issues. Director Jacobs noted a session at the Fall ACWA Conference that focused on lead testing in schools; the JPIA committee meeting discussion on the Groundwater Sustainability Act and the formation of the MOU s; and cyber security issues. Director Wilson noted his attendance at the Fall ACWA Conference Energy Committee meeting. Director Gibson noted the Fall ACWA Conference; and his attendance at the ACWA Board meeting as an alternate member. Director Gibson also noted the importance of the passage of the Water Resources Development Act of 2016, and said we ve been asked to send a letter in support of the legislation. Mr. Ferons confirmed a draft letter is being issued on behalf of the District. Mr. Ferons also noted a future meeting with USBR. Page 12

13 Board of Directors - Minutes December 7, 2016 Page 9 Agenda Item 9.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section: Property: Real Estate related to City of San Juan Capistrano s Water and Sewer Systems Agency Negotiator: Daniel R. Ferons SMWD General Manager Negotiating Parties: Santa Margarita Water District and City of San Juan Capistrano Under Negotiation: Terms for Proposed Acquisition of Property No reportable action. Agenda Item 9.2 CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Initiation of Litigation pursuant to Government Code section (d)(4) Number of Potential Cases: 1 No reportable action. President Wilson adjourned the meeting to closed session at 9:03 p.m.; open session reconvened and with no further discussion adjourned at 9:41 p.m. Page 13

14 Santa Margarita Water District Board Meeting Minutes Meeting attendees: President Charley Wilson Vice-President Charles T. Gibson Director Justin McCusker Director Saundra F. Jacobs Director Betty H. Olson Dan Ferons Joyce Crosthwaite Don Bunts Jim Leach Rich Kissee Beth Geldert Nicole Stanfield Tricia Butler Erica Castillo Kelly Radvansky Daniel Peterson Roger Faubel Bill Cray Jeff Thomas Kathleen Gibson Hanna Hess Date: December 23, 2016 Time: 7:30 a.m. Absent: Agenda Items General Manager/SMWD Assistant to the General Manager/SMWD Deputy General Manager/SMWD Director of External Affairs /SMWD Operations Manager/SMWD Customer Relations Manager/SMWD Public Information Manager/SMWD Chief Engineer/SMWD Controller/SMWD Board Secretary/SMWD Administration Analyst/SMWD Faubel Public Affairs Member of the Public Board Member/MWDOC Rate Payer Staff Assistance/Congresswoman Walters Office Board Action: Follow-up: Staff Responsible: Agenda Item 1 Pledge of Allegiance Bill Cray led the Pledge of Allegiance. Agenda Item 2 Administration of Oath of Office Jeff Thomas, Municipal Water District of Orange County, congratulated the Directors on their re-election and administered the Oath of Office for Board Directors Olson, Wilson, and Gibson. The Chair recessed the meeting at 7:41 a.m., for a photo opportunity. Page 14

15 Board of Directors-Minutes December 23, 2016 Page 2 Agenda Item 3 Public Forum Public Forum was taken out of order and before the Administration of Oath of Office. Hanna Hess, Staff Assistant at Congresswoman Mimi Walters Office, congratulated the District s Board members on their re-election, and wished them the best through term Agenda Item 3.1 Consideration and Action on the November 18, 2016 Board Meeting Minutes The Chair reconvened the meeting at 7:49 a.m. Motion: Approve the November 18, 2016 Board Meeting Minutes. Agenda Item 3.2 Consideration and Action on Acceptance of the Slope Treatment Project for the Solar Power Production Facilities at the Chiquita Water Reclamation Plant, C-1753B Motion: Accept the work, file Notice of Completion (NOC), and release retention funds 35 days after the Notice of Completion has been filed, provided no claims have been filed with the District. Agenda Item 3.3 Consideration and Action on Project Acceptance for Replacement of Domestic Water Service to San Juan Creek Lift Station, C Motion: Accept the work, file Notice of Completion (NOC), and release retention funds 35 days after the Notice of Completion has been filed, provided no claims have been filed with the District. Agenda Item 3.4 Consideration and Action on Project Acceptance for the Product Water Pipeline Portions of the Advanced Purified Water Treatment Facility (APWTF) for the Sustainable Water Supply Project, C-1778 Director Wilson moved items together; Director McCusker seconded; all items were approved unanimously. Director Wilson moved items together; Director McCusker seconded; all items were approved unanimously. Director Wilson moved items together; Director McCusker seconded; all items were approved unanimously. Director Wilson moved items together; Director McCusker seconded; all items were approved unanimously. Page 15

16 Board of Directors-Minutes December 23, 2016 Page 3 Motion: Accept the work, file Notice of Completion (NOC), and release retention funds 35 days after the Notice of Completion has been filed, provided no claims have been filed with the District. Agenda Item 3.5 Consideration and Action on Acceptance of Water and Sewer Facilities for Tract Located in the Sendero Development in I.D. No. 4E; the Release of Water and Sewer Bonds; and Adoption of Resolution No Motion: Adopt Resolution No Agenda Item 3.6 Consideration and Action on the Ratification of Contract for the Emergency Repair of 8- inch Domestic line near Arroyo Vista and Banderas Motion: Ratify the repair for $108, by Sanders Paving. Agenda Item 3.7 Consideration and Action to Establish Committee Meeting Dates and Times for 2017 Calendar Year Motion: Approve the proposed committee meeting dates through December 31, Agenda Item 4.1 Consideration and Action on Esencia (RMV PA-2) Odor Control Tricia Butler, Chief Engineer, provided a background of the project. Motion: 1. Continue chemical feed and other interim measures to mitigate odors. 2. Expedite the implementation of the Primary Process Area Odor Control System with the target of April 30 th, 2017 startup. Implementation includes procurement of equipment (odor scrubber, flat covers, mechanical equipment compatible with flat covers, related equipment), entering a contract with a design-build firm for odor control projects, associated design and construction related expenses. 3. Enter design and related contracts to prepare Director Wilson moved items together; Director McCusker seconded; all items were approved unanimously. Director Wilson moved items together; Director McCusker seconded; all items were approved unanimously. Director Wilson moved items together; Director McCusker seconded; all items were approved unanimously. Director McCusker moved the motion as recommended with the amendment to include the 4 th item of the motion; Director Wilson seconded and agreed with the amendment; the motion was approved unanimously. Page 16

17 Board of Directors-Minutes December 23, 2016 Page 4 documents for construction (eg plans, specifications, cost estimates) for additional measures that may be implemented in the future for odor mitigation including but not limited to Chemically-Enhanced Primary Treatment (CEPT), covering of the aeration basins and solids contact basins and odor scrubbing equipment, covering the dewatered solids loading area, diversion of sewage flows from Talega. (continued on next page) 4. Allocation of $180,000 additional budget from the general operating budget. Agenda Item 5.1 Consideration and Action on Resolution No ; Resolution of the Board of Directors of the Santa Margarita Water District for Exception to the 180 Day Wait Period (GC (f) (1) for Joyce Crosthwaite Director Wilson moved the motion; Director Olson seconded; approved unanimously. Mr. Ferons explained the resolution required by CalPERS for Joyce Crosthwaite to continue working on the LAFCO MSR process. Motion: Adopt Resolution No Agenda Item 5.2 Consideration and Action on First Amendment to Employment Agreement Between Santa Margarita Water District and Daniel R. Ferons Director Wilson moved the motion; Director Jacobs seconded; approved unanimously. President Gibson requested an amendment to increase the Employment Agreement term through June 30, 2018, as to provide more time for the Board to review future contract terms. Director Wilson proposed the requested amendment as part of the motion. Motion: Approve and authorize the Board President to execute the First Amendment to Employment Agreement between Santa Margarita Water District and Daniel R. Ferons; and increase the Employment Agreement term through June 30, Agenda Item 5.3 Consideration and Action on Scheduling of Future Agenda Items; and Re-Cap of the December 7, 2016 District Board Meeting Director McCusker requested a monthly update on odor control issues and a timeline to the April 30, 2017 target Director Wilson moved the motion; Director McCusker seconded; the motion was unanimously approved. Page 17

18 Board of Directors-Minutes December 23, 2016 Page 5 startup date. Mr. Ferons noted the update will be provided in the monthly Engineering Update provided to the Board. Director Jacobs requested a discussion on MWDOC s reserves for the Finance and Administration Committee, and for the District to provide input to MWDOC on the analysis of their reserves. Director Jacobs also requested an update on SOCWA. Director Gibson suggested consideration of a part time representative at the federal level. Director Wilson suggested the conversation for the Finance and Administration Committee; and recommended the review of potential lobbying and grant writing opportunities in Washington D.C. Elizabeth Hull, General Counsel noted that Best Best & Krieger has lobbyists in Washington D.C. available to the District. Director Olson requested an update on Cadiz. Motion: Review of potential lobbying and grant writing opportunities in Washington D.C.; and review MWDOC s analysis of their reserves in the Finance and Administration Committee. Agenda Item 6 General Counsel Report Agenda Item 7.1 General Manager Report Mr. Ferons reported that the District submitted a standalone letter and signed ACWA s letter to the state regarding the long-term framework. The Prop.1 storm funding was not approved; the District is researching why. The mid-year budget review, will be brought back for Board review prior to the Strategic Planning Workshop. Master financial planning of the District will be the focus of the Strategic Planning Workshop. Mr. Ferons also noted that SOCWA approved their annual use audit. Agenda Item 7.2 Engineering Update Agenda Item 7.3 Operations Update Agenda Item 7.4 External Affairs Activity Report Information Item Information Item Information Item Information Item Information Item Page 18

19 Board of Directors-Minutes December 23, 2016 Page 6 Agenda Item 7.5 Customer Relations Update Information Item Director Jacobs suggested an increase in staffing the rate open houses. President Gibson complimented staff on the article in the OnTap December issue, addressing investment in local and reliable water supply. Agenda Item 7.6 Water Use Efficiency Tracking Update Mr. Ferons noted the District is voluntarily reporting to the state; the District was at 0 for the stress test, and is at a 19% water use reduction. Agenda Item 7.7 South County Update Agenda Item 7.8 Directors Reports of Outside or Other Meeting/Events (verbal or written reports may be provided and shall be included in the record/minutes) Agenda Item 8.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section: Property: Real Estate related to City of San Juan Capistrano s Water and Sewer Systems Agency Negotiator: Daniel R. Ferons SMWD General Manager Negotiating Parties: Santa Margarita Water District and City of San Juan Capistrano Under Negotiation: Terms for Proposed Acquisition of Property Agenda Item 8.2 CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Initiation of Litigation pursuant to Government Code section (d)(4) Number of Potential Cases: 1 The Chair adjourned the meeting into closed session at 8:38 a.m.; reconvened into open session at 8:48 p.m., and with no reportable action adjourned the meeting at 8:50 a.m. Information Item Information Item No reports. No reportable action. No reportable action. Page 19

20 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Kelly Radvansky Consideration and Action on Approval of Expenses for President Gibson s Attendance at Association of California Water Agencies Federal Affairs Committee Meeting in Sacramento, California on January 27, 2017 SUMMARY Issue: President Gibson, who is an appointed member to the Federal Affairs Committee of Association of California Water Agencies (ACWA), is requesting approval to attend the ACWA Federal Affairs Committee meeting in Sacramento, California on January 27, Recommendation: Approve expenses for President Gibson to attend the ACWA Federal Affairs Committee meeting. Committee Status: This item was not reviewed by a committee. Fiscal Impact: Funding is provided in the District s administration annual budget. Previous Related Action: Periodically the District authorizes Board member attendance at conferences and meetings. Adherence to Policy: The request adheres to the District s Travel and Expense Reimbursement Policy. DISCUSSION Consistent with the District s Code of Travel and Expense Reimbursement Policy, President Gibson has submitted a request in advance to attend the ACWA Federal Affairs Committee meeting. Airfare to Sacramento is $453. Meals or other allowable incidental costs which may be submitted for expense reimbursement will be reported at a subsequent District meeting. Page 20

21 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Tricia Butler Consideration and Action on Acceptance of Water and Sewer Facilities for Tract Lots 28 and 29 Located in the Sendero Development in I.D. No. 4E; the Release of Water and Sewer Bonds; and Adoption of Resolution No DEVELOPER: William Lyon Homes SUMMARY: Issue: Water and Sewer facilities within Tract Lots 28 and 29 have been completed to the satisfaction of staff. Recommendation: Adopt Resolution ; Accepting the water and sewer facilities constructed in conjunction with the subject tract and authorizing the Santa Margarita Water District to release water and sewer bonds for the subject tract. Fiscal Impact: Accepted facilities become a fixed asset of the District. Previously Related Action: Ongoing routine tract acceptance. Committee Status: On January 13, 2017, the Engineering and Operations Committee (EOC) recommended this item for Board consideration. The committee did not have further discussion beyond the need to adopt the resolution. Adherence to Policy: Construction of the work adheres to the SMWD Design Criteria and Standard Drawings for Water and Sewer Facilities (SMWD Standards). DISCUSSION: The water and sewer facilities constructed in conjunction with the subject tract have been completed to the satisfaction of the staff. The water and sewer bonds are being held by the Santa Margarita Water District. The developer has also provided the District with an acceptable Bill of Sale and Cost of Construction Statement (attached). The cost of construction of the water and sewer facilities are as follows: Water: $238, Sewer: $102, Page 21

22 Board of Directors January 20, 2017 Page 2 Therefore, it is recommended that the board adopt a resolution that accepts the water and sewer facilities that were constructed in conjunction with the tract and authorizes the District to release the water and sewer bonds, thereby starting the one-year warranty period. Page 22

23 RESOLUTION NO RESOLUTION OF THE BOARD OF DIRECTORS OF SANTA MARGARITA WATER DISTRICT, ORANGE COUNTY, CALIFORNIA, ACCEPTING WATER AND SEWER FACILITIES CONSTRUCTED IN TRACT NO LOTS 28 AND 29 IN IMPROVEMENT DISTRICT NO. 4E AND AUTHORIZING THE SANTA MARGARITA WATER DISTRICT TO RELEASE THE WATER AND SEWER BOND WHEREAS, the Santa Margarita Water District (the District ) approved the plans for the construction of water and sewer facilities in Tract No Lots 28 and 29; WHEREAS, the District, as a condition of providing water and sewer service to said Tract, required the construction of said water and sewer facilities, and the posting of a bond with the Santa Margarita Water District to guarantee the construction thereof; and WHEREAS, the water and sewer facilities have been completed in substantial conformance with the plans and specifications. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Santa Margarita Water District that the water and sewer facilities constructed within Tract Lots 28 and 29, and dedicated to the District are hereby accepted, and that the Santa Margarita Water District is authorized to release the bond posted for the construction of said water and sewer improvements. APPROVED AND ADOPTED this 20 th day of January, ATTEST: Charles T. Gibson President of the Board of Directors Santa Margarita Water District Kelly Radvansky Secretary to the Board of Directors Santa Margarita Water District Page 23

24 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss I, Kelly Radvansky, Secretary of the Board of Directors of the Santa Margarita Water District, do hereby certify that the foregoing Resolution was duly adopted by the Board of Directors said District at a regular meeting held on the 20 th day of January, 2017 and that it was so adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: Kelly Radvansky Secretary to the Board of Directors Santa Margarita Water District I, Kelly Radvansky, Secretary of the Board of Directors of the Santa Margarita Water District, do hereby certify that the above and forgoing is a full, true, and correct copy of Resolution No of said Board, and that the same has not been amended or repealed. DATED: January 20, 2017 Kelly Radvansky Secretary to the Board of Directors Santa Margarita Water District (Seal) Page 24

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31 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Tricia Butler Consideration and Action on Acceptance of Water and Sewer Facilities for Tract Lots 30 and 31 Located in the Sendero Development in I.D. No. 4E; the Release of Water and Sewer Bonds; and Adoption of Resolution No DEVELOPER: William Lyon Homes SUMMARY: Issue: Water and Sewer facilities within Tract Lots 30 and 31 have been completed to the satisfaction of staff. Recommendation: Adopt Resolution No ; Accepting the water and sewer facilities constructed in conjunction with the subject tract and authorizing the Santa Margarita Water District to release water and sewer bonds for the subject tract. Fiscal Impact: Accepted facilities become a fixed asset of the District. Previously Related Action: Ongoing routine tract acceptance. Committee Status: On January 13, 2017, the Engineering and Operations Committee (EOC) recommended this item for Board Consideration. The committee did not have further discussion beyond the need to adopt the resolution. Adherence to Policy: Construction of the work adheres to the SMWD Design Criteria and Standard Drawings for Water and Sewer Facilities (SMWD Standards). DISCUSSION: The water and sewer facilities constructed in conjunction with the subject tract have been completed to the satisfaction of the staff. The water and sewer bonds are being held by the Santa Margarita Water District. The developer has also provided the District with an acceptable Bill of Sale and Cost of Construction Statement (attached). The cost of construction of the water and sewer facilities are as follows: Water: $245, Sewer: $182, Page 31

32 Board of Directors January 20, 2017 Page 2 Therefore, it is recommended that the Board adopt a resolution that accepts the water and sewer facilities that were constructed in conjunction with the tract and authorizes the District to release the water and sewer bonds, thereby starting the one-year warranty period. Page 32

33 RESOLUTION NO RESOLUTION OF THE BOARD OF DIRECTORS OF SANTA MARGARITA WATER DISTRICT, ORANGE COUNTY, CALIFORNIA, ACCEPTING WATER AND SEWER FACILITIES CONSTRUCTED IN TRACT NO LOTS 30 AND 31 IN IMPROVEMENT DISTRICT NO. 4E AND AUTHORIZING THE SANTA MARGARITA WATER DISTRICT TO RELEASE THE WATER AND SEWER BOND WHEREAS, the Santa Margarita Water District (the District ) approved the plans for the construction of water and sewer facilities in Tract No Lots 30 and 31; WHEREAS, the District, as a condition of providing water and sewer service to said Tract, required the construction of said water and sewer facilities, and the posting of a bond with the Santa Margarita Water District to guarantee the construction thereof; and WHEREAS, the water and sewer facilities have been completed in substantial conformance with the plans and specifications. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Santa Margarita Water District that the water and sewer facilities constructed within Tract Lots 30 and 31, and dedicated to the District are hereby accepted, and that the Santa Margarita Water District is authorized to release the bond posted for the construction of said water and sewer improvements. APPROVED AND ADOPTED this 20 th day of January, ATTEST: Charles T. Gibson President of the Board of Directors Santa Margarita Water District Kelly Radvansky Secretary to the Board of Directors Santa Margarita Water District Page 33

34 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss I, Kelly Radvansky, Secretary of the Board of Directors of the Santa Margarita Water District, do hereby certify that the foregoing Resolution was duly adopted by the Board of Directors said District at a regular meeting held on the 20 th day of January, 2017 and that it was so adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: Kelly Radvansky Secretary to the Board of Directors Santa Margarita Water District I, Kelly Radvansky, Secretary of the Board of Directors of the Santa Margarita Water District, do hereby certify that the above and forgoing is a full, true, and correct copy of Resolution No of said Board, and that the same has not been amended or repealed. DATED: January 20, 2017 Kelly Radvansky Secretary to the Board of Directors Santa Margarita Water District (Seal) Page 34

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41 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Rich Kissee Consideration and Action on Purchase of 10 Sewer Bypass Pump SUMMARY Issue: The District currently does not have guaranteed access to a high capacity bypass pump in case of an emergency. Recommendation: Authorize purchase of high capacity sewer bypass pump from Rain for Rent in the amount of $135,000. Fiscal Impact: Funding for these purchases is included in the Operation s Department Capital Expenditures Overhead Budget for Fiscal Year 2016/17. Adherence to Policy: This project is consistent with the District s strategic goal of providing quality, uninterrupted service while also continuing to meet and exceed regulatory compliance goals. Previous Action: The District owned a 1970 s 12 bypass pump for emergencies but stricter emissions regulations forced the District to remove it from service several years ago. Committee Status: On January 13, 2017, the Engineering and Operations Committee (EOC) approved this item for the Board consent calendar. The EOC discussed the need for this high capacity sewer bypass pump and potential uses of it within the District sewer system. DISCUSSION In order to be properly prepared for emergencies, bypass pumps are brought in to allow lift stations to be taken offline. These portable pumps serve as a mobile lift station which maintain sewer flows and prevent backups or overflows. The District previously maintained a high capacity sewer bypass pump but stricter environmental compliance rules forced the District to remove it from service. As part of the District s emergency planning for the predicted El Nino-caused flooding, staff contacted several local pump rental companies to be placed on a standby list for emergency rentals. Staff was warned that the list of agencies interested in renting exceeded the amount of pumps they Page 41

42 Board of Directors January 20, 2017 Page 2 would have available. The vendors also pointed out that their pumps were rented out on a firstcome, first-served basis. Emergencies such as a large-scale power outage or a severe rainstorm would create a large demand for this type of pump and the District could be put into the position of being unable to obtain the pump in an emergency. In order to prevent this type of gap in coverage, staff studied several different types and sizes of pumps to find a pump that would satisfy the needs of the SMWD sewer system. The result of their analysis was that a 10 bypass pump would be the appropriate size to bypass all but two of the District s lift stations and all of the main trunk lines. Figure 1: Bypass Pump The District prepared a specification package and solicited bids from three vendors. The results are shown below. Vendor Quote Rain for Rent $118,667 Xylem $116,532 Rockwell Solutions $176,624 The recommendation is to purchase the vehicle from Rain for Rent for $118,667. While Xylem s pump was the lowest bid, it was a larger and less efficient pump than the District requested. The Rain for Rent pump curve showed that the unit would be more efficient with the flows that it would be required to handle. The amount of the purchase authorization requested is for $135,000 to cover the cost of any applicable taxes, licenses, and fees required on the purchase of the bypass pump. Page 42

43 Board of Directors January 20, 2017 Page 3 FUNDING In anticipation of this purchase, $125,000 was budgeted in Operations Capital Expenditures Budget for Fiscal Year 2016/2017. The remainder of the funds will be moved from the Operating budget into the Capital Expenditures budget to offset the difference. Page 43

44 MEMORANDUM Agenda Item 4.1 Cadiz Project Update Oral Presentation Page 44

45 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Tricia Butler and Karla Houlihan Consideration and Action on Approval to Award Contract to Shoffeitt Pipeline for the Construction of the Recycled Water Zone E Pipeline Extension to the Skyridge Conversion Project C-1674B SUMMARY Issue: Santa Margarita Water District (SMWD) is expanding its recycled water Zone E system to serve the Skyridge Development per an interagency agreement with Trabuco Canyon Water District (TCWD). Implementation of the project will result in a 35-acre-feet-per-year savings in domestic water. This project is to construct approximately 4,000 feet of 8-inch pipeline to extend the recycled water system and to construct 1,800 feet of force main along a portion of the same alignment for future use at the Upper Oso Reservoir property. Recommendation: Authorize awarding a contract to Shoffeitt Pipeline in the amount of $420, for the Recycled Water Zone E Pipeline Extension to the Skyridge Conversion Project and the installation of the force main in the parallel alignment. Fiscal Impact: The construction contract cost of the project is $420,140.10, consists of a cost allocation of $382, for the extension of the recycled water system and $37, for the force main. The total budget including design, survey, geotechnical testing and other administrative costs is estimated at $560,000. Of this cost, $510,000 is allocated to the recycled water extension and will be collected from the Skyridge developer through TCWD. Approximately $50,000 is allocated to the force main extension which was included in the budget (C00D95), New Capital Projects Reserve. Previously Related Action: On June 1, 2016, the Board approved an agreement with TCWD for providing water, recycled water and sewer service to a development outside of SMWD s service boundaries. A Mitigated Negative Declaration was prepared and accepted by the Board on October 23, Adherence to Policy: This project is consistent with the District s Purchasing Policy and Procedures, Section VI General Policy of Bidding Construction Projects. The Skyridge conversion project aligns with the District s 2016 Strategic Goal The District will recycle 100% of its wastewater by 2019 by increasing recycled water usage. Committee Status: On January 13, 2017, the Engineering and Operations Committee (EOC) discussed the cost-effectiveness of constructing the force main with the recycled water pipeline, and value of water sales to neighboring agencies made possible by this project. The EOC approved this item for Board Consideration. Page 45

46 Board of Directors January 20, 2017 Page 2 DISCUSSION: A new development, Skyridge, is being constructed within Trabuco Canyon Water District s (TCWD) service area. TCWD does not have any infrastructure in or near this area, therefore, it would be prohibitively expensive to extend their distribution system to provide the necessary service. The District has potable water and sewer pipelines directly adjacent to the proposed development. The District also has a recycled water pipeline of adequate size to serve the development within a relatively close distance. TCWD approached the District about the possibility of providing water, recycled water and sewer service to Skyridge through the development of an interagency service agreement. The agreement adopted by the Board in June 2016 outlines the terms of service including the identified buy-in costs for the three services and also the estimated costs of installing the recycled water pipeline and making improvements to the Monterey Villa Recycled Water Booster Pump Station (MVRWBPS). The Recycled Water Pipeline Extension to the Skyridge Conversion Project consists of the construction of approximately 4,000 feet of 8-inch PVC pipe to supply recycled water to the Skyridge Development in the City of Mission Viejo. Implementation of the project will result in a 35-acre-feet per year (afy) savings in domestic water in the Skyridge development. The pipeline installation and the various pump station improvements can also be used to serve the adjacent community of Hidden Ridge that is within the District service area but does not currently have a recycled water system. Serving Hidden Ridge will result in the delivery of up to 35 afy of additional tertiary-treated recycled water to dedicated irrigation customers within the District. The proposed ultimate expansion of the recycled water distribution system to the Skyridge and Hidden Ridge Communities, which adds approximately 7,800 feet of pipe and supplies up to 70 afy, would be supplied by water from SMWD s recycled water system including water that may be stored at Upper Oso Reservoir. In addition to the installation of the 8-inch recycled water line, the project will also include the parallel construction of approximately 1,800 feet of a 2½-inch force main. This force main will convey sewage flows from the Boy Scout facilities located at the Upper Oso Reservoir to an existing District sewer line. The force main will be constructed in a parallel alignment adjacent to the recycled water line within the Upper Oso Reservoir property limits and along an existing District easement, southwest to an existing sewer manhole in Windswept Way in the Painted Trails Community. See attached Exhibit A for an overview of the project. The recycled water pipeline extension for the Skyridge Conversion Project was advertised for bids in November 2016 to six contractors on the District s pre-qualified list. All six pre-qualified contractors attended the mandatory pre-bid meeting and site tour. The District only considers bids from the contractors who attended the pre-bid meeting and on December 20, 2016, five (5) bids were received and opened. Page 46

47 Board of Directors January 20, 2017 Page 2 Table 1 presents a summary of the bids received. Table 1 - Bid Summary Bidder Bid Amount Paulus Engineering, Inc. $957, Kennedy Pipeline $698, Leatherwood Construction, Inc. $479, L&S Construction, Inc. $536, Shoffeitt Pipeline $420, The lowest bidder, Shoffeitt Pipeline, submitted the required bid documents and is considered a responsive, responsible bid. Staff recommends award of the construction contract to Shoffeitt Pipeline in the amount of $420, Shoffeitt Pipeline is a contractor relied heavily on by our Operations staff for assistance with system repairs, maintenance and improvements. Operations personnel select Shoffeitt Pipeline to assist with work because of their quality of work and the ongoing positive professional relationship with the District. Given the fact that Shoffeitt Pipeline is the successful low bidder on a project in a competitive bid scenario lends support to the Operations personnel selecting them for assistance during times of high workload volume and it reinforces their position on our preferred contractors list. We expect the work they will complete on this contract will be consistent with the quality of work routinely performed throughout the District. Implementation of the Recycled Water Zone E Pipeline Extension to the Skyridge Conversion Project includes related costs as summarized in Table 2. The total projected costs have been proportioned to the recycled water and force main categories based on the associated line items in the Soffeitt bid. Table 2 Total Project Budget Category Recycled Water Force Main Total Budget Construction Contract Shofeitt Pipeline $382, $37, $420, Survey Northstar Surveys $19, $1, $21, Geotechnical Testing $13, $1, $15, Design $18, $1, $20, Construction Administration $36, $3, $40, Contingency $36, $3, $40, Total $506, , $556, Rounded Total Budget $510,000 $50,000 $560,000 Page 47

48 Board of Directors January 20, 2017 Page 2 FUNDING: The cost of the construction contract is $420, and the total estimated project budget with associated costs is $560,000. The cost of the recycled water pipeline extension ($510,000) will be funded through infrastructure improvement funds collected from the Developer through TCWD. Initially this cost will be paid through new project reserves, which will be reimbursed after billing and developer payment. The cost of the force main is estimated at $50,000 and is one component of the $250,000 budget in New Capital Project Reserves for the future lift station and force main. Table 3 Project Financing Distribution Table Facility Description Project Total Funding Source Code Budget Recycled Water Pipeline C00992 New Cap Project Reserves to be $510,000 reimbursed by Skyridge Developer Force Main (1) C00D95 New Cap Project Reserves $50,000 Total Budget $560,000 (1) The total Budget, C00D95 is $250,000. This budget will also fund the construction of the lift station at Upper Oso Reservoir Scout Camp and force main extension to the force main constructed under the current project. Page 48

49 DOW MEA 8" 8" WA ND ER IN GT RA ILS EXISTING RECYCLED WATER LINES (SMWD) AD 8" 565 6" OR 8" O T EL RO AY W DADA E EST CEL VIA BAN 8" 8" P:\PROJECTS\CONVERSION PROJECTS\SKYRIDGE CONVERSION\STUDY\Skyridge Exhibit A.dwg, File date: 12/9/2016 8:15 AM, Print date: 12/9/2016 8:20 AM, by: Rivas, Alex RID GE NEW RECYCLED WATER LINE SKYRIDGE DEVELOPMENT SCALE: 1" = 500' DECEMBER 2016 RECYCLED WATER CONVERSION PROPOSED SKYRIDGE RECYCLED CONVERSION PROJECT EXHIBIT A Page 49

50 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Kelly Radvansky Consideration and Action on Scheduling of Future Agenda Items and Re-Cap of the December 23, 2016 District Board Meeting At the December 23 rd District meeting the following items were considered: Item # ACTION 3.1 Approved the November 18, 2016 Board Meeting Minutes. 3.2 Accepted the work for Slope Treatment Project for Solar Power Production Facilities at CWRP. 3.3 Accepted the work for Replacement of Domestic Water Service to San Juan Creek Lift Station. 3.4 Accepted the work for Product Water Pipeline Portions of the APTWF. 3.5 Adopted Resolution authorizing the Santa Margarita Water District to accept the water and sewer facilities and release the water and sewer bond for the subject tract. 3.6 Ratified the repair for $108, by Sanders Paving. 3.7 Approved the proposed committee meeting dates through December 31, Authorized the continuance of chemical feed and other interim measures to mitigate odors. Approved expediting the implementation of the Primary Process Area Odor Control System with the target of April 30 th, 2017 startup. Authorized to enter design and related contracts to prepare documents for construction for additional measures that may be implemented in the future for odor mitigation. Approved the allocation of $180,000 additional budget from the general operating budget. 5.1 Adopted Resolution No ; Resolution of the Board of Directors of the Santa Margarita Water District for Exception to the 180 Day Wait Period (GC (f) (1) for Joyce Crosthwaite. 5.2 Approved and authorized the Board President to execute the First Amendment to Employment Agreement between Santa Margarita Water District and Daniel R. Ferons; with the amendment to increase the term of the agreement to June 30, Director McCusker requested a monthly update on odor control issues and a timeline through the target startup date April 30, Page 50

51 Board of Directors January 20, 2016 Page 2 Director Jacobs requested a discussion on MWDOC s reserves for the Finance and Administration Committee, and for the District to provide input to MWDOC on the analysis of their reserves. Director Jacobs also requested an update on SOCWA. Director Gibson suggested consideration of a part time representative at the federal level. Director Wilson suggested the conversation for the Finance and Administration Committee; and the review of potential lobbying and grant writing opportunities in Washington D.C. Director Olson requested an update on Cadiz. The DRAFT chart below includes anticipated items for the next two months: February March Board Meeting #1 Board Meeting #2 Special Meeting Action Items 1.Quarterly Financials Presentation Items 1.PFM Quarterly Update Action Items 1.Joint Powers Authorities Action Items 1.Escencia Bond Issue 2. SMDPA Bond Refinancing. Action Items 1.Policy Handbook Strategic Planning Workshop Feb. 4th Page 51

52 Are you Attending? Dates Hotel Board Member Event Day Date Location Deadline Cost of Event Yes No Needed Dates of flights Chuck Gibson Orange County Business Council 2017 Annual Dinner Thursday 2/16/2017 Hotel Irvine -Irvine $275 Chuck Gibson SCWC Quarterly Luncheon Friday 1/27/2017 Chino $70 Chuck Gibson ACC-OC City Leader Reception Thursday 2/2/2017 Angel Stadium - Anaheim $25 Chuck Gibson Urban Water Institute's Spring Water Conference 2/8-2/10 Palm Springs $475 Chuck Gibson LARCS Spring Celebration Saturday 4/8/2017 Ladera Ranch no charge Chuck Gibson Orange County Water Association Luncheon Wednesday 1/18/2017 Irvine $30 X Justin McCusker Orange County Business Council 2017 Annual Dinner Thursday 2/16/2017 Hotel Irvine -Irvine $275 Justin McCusker SCWC Quarterly Luncheon Friday 1/27/2017 Chino $70 X Justin McCusker ACC-OC City Leader Reception Thursday 2/2/2017 Angel Stadium - Anaheim $25 Justin McCusker Urban Water Institute's Spring Water Conference 2/8-2/10 Palm Springs $475 Justin McCusker LARCS Spring Celebration Saturday 4/8/2017 Ladera Ranch no charge Justin McCusker Orange County Water Association Luncheon Wednesday 1/18/2017 Irvine $30 Saundra Jacobs Orange County Business Council 2017 Annual Dinner Thursday 2/16/2017 Hotel Irvine -Irvine $275 Saundra Jacobs SCWC Quarterly Luncheon Friday 1/27/2017 Chino $70 Saundra Jacobs ACC-OC City Leader Reception Thursday 2/2/2017 Angel Stadium - Anaheim $25 Saundra Jacobs Urban Water Institute's Spring Water Conference 2/8-2/10 Palm Springs $475 Saundra Jacobs LARCS Spring Celebration Saturday 4/8/2017 Ladera Ranch no charge Saundra Jacobs Orange County Water Association Luncheon Wednesday 1/18/2017 Irvine $30 Betty Olson Orange County Business Council 2017 Annual Dinner Thursday 2/16/2017 Hotel Irvine -Irvine $275 Betty Olson SCWC Quarterly Luncheon Friday 1/27/2017 Chino $70 Betty Olson ACC-OC City Leader Reception Thursday 2/2/2017 Angel Stadium - Anaheim $25 Betty Olson Urban Water Institute's Spring Water Conference 2/8-2/10 Palm Springs $475 Betty Olson LARCS Spring Celebration Saturday 4/8/2017 Ladera Ranch no charge Betty Olson Orange County Water Association Luncheon Wednesday 1/18/2017 Irvine $30 Charley Wilson Orange County Business Council 217 Annual Dinner Thursday 2/16/2017 Hotel Irvine -Irvine $275 Charley Wilson SCWC Quarterly Luncheon Friday 1/27/2017 Chino X Charley Wilson ACC-OC City Leader Reception Thursday 2/2/2017 Angel Stadium - Anaheim $25 X Charley Wilson Urban Water Institute's Spring Water Conference 2/8-2/10 Palm Springs $475 Charley Wilson LARCS Spring Celebration Saturday 4/8/2017 Ladera Ranch no charge Charley Wilson Orange County Water Association Luncheon Wednesday 1/18/2017 Irvine $30 Page 52

53 MEMORANDUM Agenda Item 7 General Counsel Report Oral Report Only Page 53

54 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Dan Ferons General Manager Report DISCUSSION: Medication Collection Service In December 2013, the District approved a pilot program for District customers to safely dispose of their expired medication; in July 2015 the District recommended extending the program indefinitely and District staff to provide annual updates to the Board. This program allows the District s customers the opportunity to remove these substances from the home and legally and safely turn them over to a proper chain of custody for destruction. The District s partner in this program is Waste Management, Inc. Collections comply with the Drug Enforcement Agency (DEA) standards. As also required by the DEA, the instructions on the box in the lobby clearly state that it is for the disposal of unwanted, non-controlled pharmaceuticals. The Sheriff s Department was consulted for their input on the location for the drop-off box which was bolted to the wall for security. In Calendar Year 2016, 13 collections were made totaling pounds of expired meds for an average pounds per collection. For comparative purposes, please note the previous two year totals: 2014: 12 collections / pounds (19.91/collection) 2015: 13 collections / pounds (28.21/collection) The cost for 2016 collection was $4,150 with the annual budget being $5,000. MWDOC Analysis and Discussion on its Reserve Policy After it adopted its annual budget, MWDOC initiated a review of its reserve policy and hired a consultant to provide financial analysis, the schedule was to incorporate proposed changes, if any, in the Fiscal Year budget. MWDOC currently anticipates it will receive the analysis this month and place it on its committee agenda in February. Orange County Flood Control District Proposal to Require Utility License Agreements The Flood Control District has continued to propose utility license agreements and we are reviewing all of our crossings to determine the final impact. We are setting up a meeting to review each of our facilities and the proposed facilities to better understand their perspective. Page 54

55 Board of Directors January 20, 2017 Page 2 State of California Long-Term Framework to Make Water Conservation a California Way of Life The District provided a comment letter (attached in the Water Use Efficiency Update) in response to the State Board s request and public hearing on January 18, An update will be provided at the Board Meeting. Financial Update Mid-Year Budget Review The District is preparing a review of the budget for the upcoming Finance Committee Meeting and Strategic Planning Session. The key pieces are the capital improvement plan, water purchases, power, salaries and cost allocations between the various cost centers. Joint Powers Authorities South Orange County Wastewater Authority (SOCWA) SOCWA is initiating its annual budget process and several policy questions have been raised for cost allocations, particularly with the flows to the Jay B. Latham Plant. This impacts Moulton Niguel Water District, City of San Juan Capistrano, South Coast Water District and SMWD. San Juan Basin Authority (Authority) The search for a contract Administrator for the Authority is continuing with a recommendation for the Board expected in February. The City of San Juan Capistrano agreed to continue cessation of pumping under the water rights permit through the end of January. The request to cease pumping is based on the current basin conditions and the modeling under the Authority s adaptive management plan. The discussion is currently underway for restarting the facility for a six-week period commencing February. Santa Margarita Dana Point Authority (SMDPA) The SMDPA audit, which is performed as part of the District audit, and the proposed Santa Margarita Dana Point Authority, Series 2016 Bond Refinancing, if it proceeds, are currently scheduled for the adjourned regular Board meeting on February 7, District Business Plan Update The District s Business Plan adopted by the Board on May 20, 2016, is reaching the end of the second quarter. Department Assistants continue to update the tracking system every two months, these updates are reviewed by the Administration Department and reported back to me. An end of the year review will be sent out under separate cover prior to the Strategic Planning Session. Page 55

56 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Dan Ferons Capital Improvement Program Staff report to follow under separate cover prior to the Board meeting. Page 56

57 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Tricia Butler/Jeff McDonnell Engineering Update FACILITY PLANNING AND DESIGN EFFORTS Trampas Canyon Reservoir The $15 million State Water Resources Control Board Grant was approved as well as a $47 million 1% Interest Loan. Additional funding for land, and other costs will be from new development funding, potential partners and District New Capital Project Reserves. The District continues to work with RMV on the sale and transfer of ownership on the land needed for the project. The transfer of ownership will be needed before DSOD will give final approval for the project. The applications for regulatory permits from the Regional Board, Army Corps of Engineers, and Department of Fish and Wildlife were submitted during the week of July 11, Glen Lukos Associates (GLA) is completing the resubmittal package to go to the regulatory agencies, and resubmittal is anticipated in January. Butier Engineering (teamed with Black & Veatch consulting engineers) is undergoing the constructability review of the Plans and Specifications. SMWD staff is reviewing concurrently. The 100% Plans & Specifications package is scheduled to be submitted to DSOD for final approval in early February, ODOR CONTROL UPDATE On December 23, 2016, the Board approved item 4.1 Consideration and Action on Esencia (RMV PA-2) Odor Control, C-1241T.007. The Board directed staff to provide monthly updates on the project implementation as part of the Engineering Update to the Board. Primary Process Area Odor Control Activities completed in December 2017: Calculated air volume and air flow requirements for new Primary Odor Control System. Developed schedule for project phasing and completion. Page 57

58 Board of Directors January 20, 2017 Page 2 Office meeting with Don King, odor control consultant, to discuss project concepts and requirements. Field recon with Don King, odor control consultant, to identify location of new facilities. Developed scope of work for odor control consultant, for equipment technical specification and permitting. Upcoming activities: Equipment Procurement 13Jan2017: Issue professional services contract for odor control consultant. 20Jan2017: Issue request for proposals for odor control equipment, flat covers and additional long lead items. 27Jan2017: Receive proposals for long lead items. 03Feb2017: Complete review of PO Terms and Conditions comments from suppliers, issue Purchase Orders. 17Feb2017: Submittals received. 22Feb2017: Submittal review comments from SMWD. 14Apr2017: Equipment fabricated and delivered (10 weeks from PO issue). 28Apr2017: New odor control unit installed and operating (2 weeks from delivery) for Phase 1 (PC 4, grit area). PC 1 and PC 2 continue operation on existing odor control unit. 12May2017: PC3 flat cover retrofit complete. PC3 on new odor control unit. 09Jun2017: PC 1 and 2 flat cover retrofit complete. Old odor control unit deactivated. Design/Construction 20Jan2017: Procure electrical and structural design services. 03Feb2017: Complete design work. 03Feb Mar2017: Select / negotiate with Contractor. 17Mar2017: Bonds, Insurance, contract in place. 14Apr2017: Underground construction complete, slab/electrical provisions ready for new odor control unit. 28Apr2017: Install and startup new odor control unit. Additional Odor Control Measures Activities completed in December 2016: Refer to construction update in this report for status of Influent Pump Station odor control and San Juan Creek Lift Station odor control projects. 75 % design of filter backwash relocation. Page 58

59 Board of Directors January 20, 2017 Page 3 Upcoming activities: Investigation of diversion of Talega flows to San Clemente. During late December, Pico and Talega Lift Stations experienced high flows which required use of the 16-inch force main instead of the 10-inch. Concurrently, the Anue odor control compressor at Talega failed requiring use of the Bioxide feed backup. Both incidents correlated to increased odor complaints at and near the Chiquita WRP. Diversion of Talega flows would eliminate the use of the long force main and duration of sewage travel time, thus reducing odor generation. This reduction of flow in conjunction with CEPT may allow suspension of use of the trickling filter and solids contact basin at CWRP. Field work and design of Chemically-Enhanced Primary Treatment implementation. WATER USE EFFICIENCY Recycled Water Retrofits Staff is working with Evergreen Ridge HOA to convert irrigated areas along Santa Margarita Parkway and Los Alisos Blvd in Mission Viejo. This project may represent up to 30 AFY of potable savings, dependent on the extent of conversions that is possible based on the layout of the on-site irrigation system. See attached spreadsheet (SMWD Recycle Meter Conversion) providing an update on the various projects. GENERAL ACTIVITIES Development, Permits, Engineering Desk The following is a summary of the work that took place for development, permitting, backflow prevention and engineering desk activity within the District in the month of December: Lay sheets for the Capital Improvement Plan, 20-inch RW were reviewed and approved in preparation for the manufacturing of the steel pipe and subsequent installation. Shop drawing submittals for tracts 17653/17564 (PA-2.3/2.4) backbone plans were submitted and reviewed. The revision #1 to the approved Water and Sewer Improvement Plans for tracts 17563/17564 (PA-2.3/2.4) was submitted for review. This includes the tie in of the sewer to the existing manhole north of CWRP. Review and coordination with the engineer on design issues for the CCRC site adjacent to the Ranch headquarters was ongoing this month. Plan approval should occur in January. The Water and Sewer Master Plan for one of ten of the builder tracts in tract (PA-2.3) was approved in December. Nine of the ten have been approved. Page 59

60 Board of Directors January 20, 2017 Page 4 Improvement plans for a portion of tract (containing the Medano Street improvements) was submitted for a third review for early construction to accommodate RMV s schedule. The master plan will be submitted and approved for this tract prior to the complete improvement plan set reviewed and approved. One 4 th submittal, one 2 nd submittal and three 1 st submittals for Water and Sewer Improvement Plans for builder tracts in tract (PA-2.3) were submitted for review. Three tract improvement plan sets in tract (PA-2.3) were signed for construction. Coordination on the easement documents for the Norte and Sur developments in tract (PA-2.1) continued. The storm drain outlet/spillway plans crossing District facilities and the SCP in Chiquita Canyon Road were reviewed for impacts to District facilities and encroachment onto SMWD easements for these facilities. Discussions with the County on their role in the review of this facility took place and it has been confirmed that the review of the design for this facility will lie solely with the District. Two encroachment permits were issued in December one for roadway resurfacing work and one for a custom home. Ongoing coordination took place on additional encroachment permit applications for connections to the public system and construction of new laterals; and encroachment into a District easement. Coordination with developers for various projects within Coto de Caza also took place. These projects involve the redevelopment of existing sites, or residential development on subdivided property. Bids were received for the plans and contract documents for the expansion of the Zone E Recycled Water System. The low bidder was selected and the Engineering/Operations Committee has been made aware of the project in December and will be made aware of the selected contractor in January. The project is anticipated to be awarded at the January Board Meeting. Initial survey work was started to finalize the alignment and provide the necessary staking for the contractor. Three permits will be required for the project. The applications were started and will be submitted to the agencies in January in preparation for construction to start in February. Work on the record drawings for the Califia and Palmia Projects took place. Engineering Counter - The counter received 33 items for delivery and processing. Including (5) plan check review payments totaling $87,523; (5) request for Encroachment Permits; (3) request for Will Serve Applications and (1) Fire Flow Application. New File Cabinets Status - Staff efforts continued with the scan, purge and transfer of older County Recorded Tract Maps; scanned 16 files (93 pages) located here: County Recorded Tract Maps. NOC/Retention Releases - Processed Ca. Preliminary Notice Releases for 5 projects that the EOC approved to file a NOC's in January; facilitating retention payments. Page 60

61 Board of Directors January 20, 2017 Page 5 Annual Dam Reports - Processed the Annual Portola Dam & Reservoir and Upper Oso Dam reports to the State. Tract Acceptance - Finalized the Bond Exoneration process for Tract with the County and Developer. Board Approval Follow-up - Updated fee changes and finalized the Encroachment Permit & Waste Water Discharge forms that the Board Approved (on ) onto the website for customers use. Will serve letters processed four. Sanitation Clearances two. Backflow test reports processed approximately 500, corrections and updates to accounts. Fire flow test letter one issued. Utility requests five answered. Tract acceptance process two packages prepared for Board approval. GIS Update A request from the County of Orange, Water Quality Planning Section was submitted to SMWD for Sewer Data Information. While the effort to digitize the District s sewer system is still ongoing, a basic GIS shape file of backbone infrastructure, CAD data - where available, and other tabular data were supplied to the County for their Basin Plan Amendment Project. Another request from the Orange County Fire Authority for SMWD hydrants was fulfilled. The GPS coordinates which were collected by Operations Department staff, were projected and converted into shapefiles. The effort involved identifying duplicate entries and outliers, as well as incorporating newer data for delivery. The screen shots below show a sample of hydrant locations on an aerial photo and on a street map. Page 61

62 Board of Directors January 20, 2017 Page 6 TREATMENT FACILITIES Chiquita Water Reclamation Plant The Plant treated mg of wastewater and produced af (99.72 mg) of recycled water over the last month. This is a recovery of 51.0% of wastewater flow for reuse. Plant influent flow Page 62

63 Board of Directors January 20, 2017 Page 7 averaged 6.3 MGD (million gallons per day). This average is up by 0.30 MGD (million gallons per day), an increase attributed to mild rain events as well as sewer line flushing activities associated with the Esencia community odor control. Chiquita has met all of its R (NPDES) and (Recycled Water) permit limits. During December, 2016, sludge transported to Synagro s South Kern facility equaled tons, with tons being transported to Prima Deshecha, and tons to Nursery Products facility. Overall tons (19.50 tons/day) of dewatered bio-solids were generated. District staff have remained committed to focusing on odor control activates and monitoring through December. Staff have also been involved in startup and training on the new grit washer and screw presses. Oso Creek Water Reclamation Plant During the month of December, the plant treated million gallons of wastewater and produced af (46.0 mg) of recycled water over the last month. This is a recovery of 89.8% of the wastewater flow for reuse. No violations of the operating permit occurred. Significant operating events include: On December 7, an engineer from the City of Mission Viejo conducted a facility inspection as part of the City's MS4 Storm water permit. We passed with flying colors. On Friday December 16, the Secondary Clarifier 2 was shut down because the collector chain broke. Operators pumped out the tank. Mechanics then entered the tank the following Monday to reattach the broken chain as well as to remove a link from the other unbroken chain used to move the sludge collector flights. We also have scheduled a preventive maintenance activity of removing excess links from the chains in the other two clarifiers so that the chains will retain proper tensioning and not be prone to jumping teeth in the drive sprocket and failing. On December 28, new docking stations and monitors were installed in the Operator's room at the plant. 3A Water Reclamation Plant During the month of December, the plant treated approximately 55.8 mg of total wastewater and produced 13.2 af (4.3 mg) of recycled water over the last month. This is a recovery of 7.7 % of the wastewater flow for reuse. The low recovery is a result of operational restrictions in the conveyance of recycled water based on MNWD system hydraulics during low recycled water demands, and other MNWD operational considerations. MNWD is in the process of hydraulic modeling and identification of system upgrades required to convey recycled water flow during low usage periods. No violations of the operating permit occurred. A summary of significant operating events includes: On December 2, the AWT was shut down at the request of MNWD due to low demand and lack of storage for reclaimed water. Page 63

64 Board of Directors January 20, 2017 Page 8 On December 5, remote control of the diversion gate actuators from SCADA was established. This action was a necessary step in preparation for the Lake Mission Viejo APWF facility brine discharge diversion procedure. On December 6, a technician from Porter Boiler services arrived on-site to make needed adjustments to the boiler resulting from the attempted repairs the previous month. The adjustments were made and operators were instructed in the procedure for making similar adjustments when needed in the future. On December 15, a storm event was recorded at Plant 3A. Storm water samples were collected and submitted for analysis as required by the Storm Water Permit. This sample completes the required sampling for the July through December period of sampling. On December 21, a new gas recirculation blower was installed at Plant 3A. This blower is designed for combustible gas service and has superior features to the blower that was replaced. Unfortunately, this blower failed the next day. Inspection of the system revealed plugging of the gas recirculation line at a filter installed in condensate knockout pot at the suction of the blower and a flame arrester in the line was also badly fouled. Our only recourse was to clean the blockages in the recirculation line and reinstalled the old blower. We are in the process of evaluating options for repair or replacement of the new blower. Page 64

65 Board of Directors January 20, 2017 Page 9 Maintenance mechanic Jarrod Walker working on installation of rebuilt gas recirculation blower at Plant 3A Maintenance mechanic Kris Wofford preparing parts for installation of new gas recirculation blower at Plant 3A Maintenance mechanics Joseph Velarde, Alan Tyler, and Michael Vaughn after completing installation of K-rails for flood control at Plant 3A Senior maintenance mechanic Sam Smith and maintenance mechanic Jarrod Walker during installation of gas recirculation blower at Plant 3A Page 65

66 Board of Directors January 20, 2017 Page 10 CONSTRUCTION ACTIVITY Refer to the attached summary of Construction Contracts. Tesoro Zone II and Zone B Pipeline and Reservoirs The reservoirs are now functional and have operational SCADA. The reclaimed water portion of the facilities will not be commissioned until the separately contracted backbone pipeline facilities have been constructed by RMV, which is scheduled for February, The reservoir facilities are being built by Paso Robles Tank, Inc. Tesoro Tanks visible in background from Chiquita Canyon Drive in Esencia. Middle Chiquita Tanks are in the Foreground Esencia Recycled Water Pump Station SSC Construction completed startup activities during the second week of December at the Recycled Water Pump Station. Full time operation is pending RMV completion of the recycled water backbone pipeline to Tesoro Reservoir, anticipated to be delivered in early February The pump station operation will be put into abeyance until that time. The balance of the project work to be done by SSC is punch list in nature and should be completed by mid-january, Esencia Recycled Water Pump Station. Microwave Pole shown behind Structure Page 66

67 Board of Directors January 20, 2017 Page 11 Lake Mission Viejo Advanced Purification Project The Design-Build Contractor, Lyles, continues to progress on the Lake Mission Viejo Advanced Purification Water Facility. In December, Lyles completed installation of Lime and Carbon Dioxide water conditioning systems to adjust ph, alkalinity and corrosivity of product water. The UF/RO, UV disinfection system, and water conditioning systems were started up and used to feed Lake Mission Viejo for 10 days. Unanticipated rain reduced the production anticipated, but made up for the lost production in rain water. Lyles sub-contractor Metallic advanced construction of the buildings. The plant was shut down to allow Metallic to install the prefabricated wall panels and roof of the building. In January, microwave communications systems will be constructed that will be used by the plant and will provide a link in the District s new District-wide system. Purified Water was delivered to Lake MV Process Building Prefabricated Wall Installation Page 67

68 Board of Directors January 20, 2017 Page 12 Chiquita Water Reclamation Plant Screw Press Installation and Grit Washer Replacement Startup and training on the grit washer was completed in December The old grit washer, fondly known as Elvis is now retired. Upon a successful test period, the old grit washer facility will be demolished. The screw press startup phase 1 was completed. Some system modifycations were identified in order to complete startup. Startup phase 2 will be completed in January Elvis is Retired New Grit Washer is operating Los Patrones Recycled Water Facilities The Los Patrones Recycled Water Facilities continue to convey water to Portola Reservoir for use in the Coto de Caza service area. Upcoming tasks include ordering of new permanent pumps and electrification equipment. Temporary Los Patrones Pump at Middle Chiquita Coto de Caza Lift Station Electrical Rehabilitation Contractor Davis Electric is mobilized and installed conduit and other provisions in December Other activities in December included scheduling and outage planning. The new electrical MCC and VFD lineup was delivered and installation is scheduled to begin in January. This installation will include transition to temporary equipment and approximately a five-week construction sequencing to switch over and test the new equipment. Equipment Scheduled for Replacement Page 68

69 Board of Directors January 20, 2017 Page 13 Revegetation and Mitigation Revegetation, mitigation and similar activities are ongoing for a period of up to five years after construction is complete for major District projects, including: Plano Force Main at Tijeras Creek, Upper Chiquita Reservoir, Gobernadora Multipurpose Basin, Chiquita Solar Panel installation, Middle Chiquita Reservoirs, and Tesoro Reservoir and Pipeline projects Reservoir Repainting Project The Contractor, Advanced Industrial Services (AIS is currently working on the recoating of the Rancho Trabuco Reservoir. Project status is as follows: Coating Complete: Trabuco Ridge Reservoirs A and B Foothill Reservoir Scheduled Coating: Rancho Trabuco - ongoing Plano Tank A Starr Reservoir Casta del Sol Other: Plano Tank B deferred to future project Foothill Reservoir Structural Repair design underway Rancho Trabuco Reservoir Coating Preparations Chiquita Water Reclamation Plant Influent Pump Station Odor Control Initial upgrades to the existing building odor scrubber where completed in December SSC construction poured the slab where the existing building new phase 2 carbon scrubber will be located. Installation of new media, chemical feed automation, larger blower, and new carbon scrubbers installation are scheduled to begin January 16 th and to be completed by February 10 th Preparations for Extg Building New Carbon Scrubber Slab Page 69

70 Board of Directors January 20, 2017 Page 14 San Juan Creek Lift Station Odor Control The equipment submittal for the new highcapacity carbon odor scrubber was reviewed and approved. Equipment delivery is anticipated in March and the system installation and startup is planned by April SJC LS view of wetwell/emergency storage (below slab) and proposed odor control location (background) 3D Image of the new Odor Scrubber System for San Juan Creek Lift Station Page 70

71 SMWD Recycle Meter Conversion Updated: Nov 4, 2016 COMPLETED Date Customer Service Area Conversion Type Customer ID Old Location ID New Location ID Acres Historical AFY Notes 5/20/15 Atherton Glen HOA Falabella New Connection /20/15 Atherton Glen HOA Falabella New Connection /1/15 City of Mission Viejo Marguerite/Alicia N/W CRNTied into Existing /7/15 Lake Mission Viejo Slope above parking lot neatied into Existing /7/15 City of Mission Viejo Via San Fernando Tied into Existing Domestic Location left to serve drinking fountain 7/28/15 M.V.E.A Sisante Tied into Existing /12/15 City of Mission Viejo Fieldcrest/Blackwood Tied into Existing /3/15 City of Mission Viejo Via Tercero New Connection Open space area near Barcelona Park,MV 9/3/15 City of Mission Viejo 0 Via loyola New Connection Open space area near Barcelona Park,MV 9/3/15 City of Mission Viejo Via Santa Maria New Connection Open space area near Barcelona Park,MV 11/5/15 Palmia HOA End of Acapulco Tied into Existing /15/15 Atria Del Sol Marguerite and Casta Del SNew Connection /11/16 City of Mission Viejo Los Alisos/Via Noveno Tied into Existing /23/16 City of Mission Viejo Alicia/ Via Burgos Tied into Existing /13/16 City of Mission Viejo Via Chiapas/ Jeronimo New Connection /25/16 M.V.E.A. Antela New Connection /25/16 M.V.E.A. Via Aurora New Connection /23/16 City of Mission Viejo Alicia/Marguerite Tied into Existing /29/16 City of Mission Viejo Entidad Tied into Existing /29/16 Tres Vistas HOA Bergantin Tied into Existing /14/2016 M.V.E.A. Entidad New Connection /20/2016 City of Mission Viejo Marguerite/Calixto New Connection Irrig area for LOC ID was 47,524 sq,ft, 6/20/2016 City of Mission Viejo Marguerite/Guadix New Connection Irrig area for LOC ID was 104,272 sq,ft, 7/12/2016 City of Mission Viejo Via Flores/Marg New Connection Irrig area for LOC ID was 43,316 sq,ft, 7/12/2016 City of Mission Viejo Calixto New Connection Irrig area for LOC ID was 85,440 sq,ft, 9/1/2016 Lake MV North Beach Olympiad New Connection /23/2016 Lake MV East Beach Lanzarote New Connection /21/2016 Las Flores Apts Common areas New Connection TOTAL Conversions Currently Being Considered and/or Worked On Date Customer Service Area Conversion Type Customer ID Old Location ID New Location ID Acres Historical AFY Notes Evergreen Ridge Common areas New Connection 30 Greystone HOA Common areas New Connection 8.8 Charleston Place Common areas New Connection TOTAL Page 71

72 SMWD CONSTRUCTION SUMMARY REPORT CURRENT PROJECTS DATE OF REPORT: JANUARY 10, 2017 BDM#2 Activity Name Contract Administrator Engineer/ Consultant Contractor Contractor's P.O. No. Inspector Original Contract Amount Number of Change Orders Change Order Amount to Date Revised Contract Amount Total Invoiced to Date Total Amount Remaining Total Retention Project Award Date Project NTP Date Original Completion Date Revised Completion Date NOC/Board Approval CAPITAL IMPROVEMENT PROJECTS CWRP SCREW PRESS INSTALLATION & GRIT WASHER T.002/006 SMWD SMWD STAFF SSC DIA/DOUG $774, $774, $492, $282, $24, Mar 16 9 May Nov 16 CWRP INFLUENT PUMP STATION CARBON SCRUBBER SYSTEM T.003A SMWD SMWD STAFF TBD DIA TBD COTO DE CAZA LIFT STATION ELECTRICAL UPGRADES B SMWD SMWD DAVIS ELECTRIC JOHN $476, $476, $32, $444, $1, Jul 16 2 Sep Apr 17 REPLACEMENT OF FIRE PROTECTION SERVICE PIPELINE TO SAN JUAN CREEK LIFT STATION SMWD SMWD KENNEDY PIPELINE DIA $164, $1.00 $2, $166, $166, $0.00 $8, Aug 16 1 Sep Jan Dec 16 BAKER TREATMENT PLANT IRWD N/A JAIME / JOHN CWRP SOLAR PANEL FIELD SLOPE TREATMENT B SMWD SMWD STAFF NATURES IMAGE DIA $123, $3, $127, $127, $0.00 $6, May 16 7 Jul Aug Dec 16 COW CAMP 1B PIPELINES B RMV L&S/RMV/FLAT IRON N/A JOHN/DIA TESORO ROUGH GRADING AND STORM DRAIN C SMWD RBF/MBI MC KENNA BUTIER/JEFF $2,869, ($62,926.99) $2,806, $2,574, $231, $128, May Jun Nov Jan Oct 16 TESORO ZONE II & ZONE B TRANSMISSION MAINS D SMWD RBF/MBI CCL BUTIER/JEFF $4,846, ($81,892.26) $4,764, $4,764, $18.87 $238, Dec Jan Oct Nov 16 TESORO ZONE 2 & B RESERVOIRS E SMWD RBF/MBI PASO ROBLES TANK BUTIER/JEFF $4,830, $4,830, $4,087, $742, $204, Feb 16 3 Mar Nov 16 ESENCIA ZONE B PUMP STATION F SMWD SMWD STAFF SSC BUTIER/JEFF $2,715, $29, $2,744, $2,726, $17, $136, Nov Dec Sep 16 SO. CO. PIPELINE CONNECTION 6 TURNOUT FLOW CONTROL B SMWD PSOMAS SSC JOHN/DOUG $2,118, $2,118, $1,905, $212, $95, Jan Feb Dec 16 Pending 1/20/17 ADVANCED INDUSTRIAL 2016 RESERVOIR REPAINTING PROJECT SMWD SMWD STAFF SERVICES BRIAN $1,646, ($35,800.00) $1,611, $937, $673, $46, Apr May 16 1 Jan 17 LAKE MISSION VIEJO BRINE DISCHARGE PIPELINE 1778 (1) SMWD SMWD STAFF PAULUS ENG DOUG $196, $1, $197, $197, $0.00 $9, Jul 16 N/A 2 Aug 16 2 Nov 16 LAKE MISSION VIEJO APWTF 1778 SMWD SMWD STAFF W.M. LYLES DOUG $2,900, $2,900, $2,038, $861, $101, Jun 16 N/A 12 Dec 16 LAKE MISSION VIEJOW PRODUCT WATER PIPELINE 1778 (2) SMWD SMWD STAFF PAULUS CATHODIC PROTECTION Closed DOUG $117, ($2,602.56) $114, $114, $0.00 $5, Jun 16 N/A 23 Dec 16 MITIGATION AND REVEGETATION PLANO FORCE MAIN SPILL REVEG L SMWD DUDEK NAKAE JAIME $34, $36, $70, $30, $39, n/a 13 May May May 17 UCR UPLAND RESTORATION & REVEGETATION A.03L SMWD PACIFIC RESTORATION JAIME $315, $315, $223, $91, n/a 14 Dec Apr Apr 18 GOBERNADORA MULTIPURPOSE BASIN MITIGATION AND 5 YEAR MAINT 1685L.01 SMWD SMWD NATURES IMAGE JOHN $459, $459, $233, $226, $ Jan Feb Feb 21 MIDDLE CHIQUITA REVEG & 5 YEAR MAINTENANCE L SMWD NAKAE DIA $857, $857, $629, $228, $31, Dec Feb 15 8 Dec 19 TESORO Z II AND Z B WATER FAC, EROSION CONTROL & REVEG 1767C.01L SMWD SMWD NAKAE BUTIER/JEFF $136, $136, $105, $31, $ May Jun Oct 16 NON DOMESTIC CONVERSION PROJECTS PALMIA CONVERSION PROJECT 1254C.1 SMWD SMWD STAFF L&S CONSTRUCTION DOUG/CHAD $815, ($23,348.57) $791, $791, $0.00 $39, Apr May Aug Aug 16 CALIFIA ZONE C CONVERSION 1746 SMWD SMWD STAFF L&S CONSTRUCTION DOUG $2,681, $15, $2,696, $2,696, $0.00 $134, Jun Oct 15 Est. 18 Dec 15 5 Oct 16 TRACTWORK GENERAL OVERVIEW SENDERO / PA 1 ESENCIA / PA 2.1 ESENCIA / PA 2.2 ESENCIA / PA 2.3 & 2.4 RMV / DEVELOPER VARIOUS VARIOUS ALL RMV / DEVELOPER VARIOUS VARIOUS ALL RMV / DEVELOPER VARIOUS VARIOUS ALL RMV / DEVELOPER VARIOUS VARIOUS ALL Page 72 S:\ENGINEERING\REPORTS\TB Board Egr Report Drafts\ Jan20BDM1\construction report rev1 Page 1

73 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Rich Kissee Operations Update Baker Treatment Plant After extensive internal testing, the Baker Water Treatment Plant began pumping into the South County Pipeline on January 5 th. IRWD continues to test and modify their pumping operations before the ultimate flow of 28 million gallons per day is established. o The plant will provide locally treated water to four local agencies through the South County Pipeline. SCADA Projects Pictured below are the new screw press (left) and grit washer (right) installed at CWRP. The start-up process was conducted with testing assistance and loop checks performed by John Sanatar (center) of the SCADA Team. John also made PLC code modifications to three (3) existing PLCs in the plant to integrate and support the new equipment PLC panels supplied by the manufacturer. SCADA s involvement with the Lake Mission Viejo APW start-up has been successfully accomplished. The PLC program and Operator Interface Terminal screens were created by Phong Cao (right) of the SCADA Team. See the end of this report for a copy of the remote SCADA and terminal control screens. Page 73

74 Board of Directors January 20, 2017 Page 2 Seen below is the PLC panel that was installed at the Baker Treatment Plant to transmit flow and pressure data so that SMWD Distribution staff can effectively manage the water volumes coming into the South County Pipeline. The panel was built in-house by Sr. Instrumentation Systems Technician, Joe Villarreal (inset) of the SCADA Team and all network wireless configuration was performed by Instrumentation Systems Technician, Phong Cao. Some of the upcoming projects that the SCADA team has in plans are: o SCADA Project Manager, Brian Harrison (right) is working on the design and implementation of two key repeater facilities to be located at a MNWD and a CSJC site. These sites will involve formalizing a partnership with these agencies which will allow the District to establish vital links in the districts microwave wireless network. o Security camera installation projects have begun for the Plant 3A and CWRP. o The Foothill SCADA system sites are now being evaluated for security camera installations. o The last Factory Talk SCADA System (Foothill) is nearing completion and removal of the old Wonderware systems are scheduled for the end of February John Sanatar is the project programmer for this project. Water Systems and Mechanical Crews Installed a replacement spool for water supply service at San Juan Lift. Contractors began work at Rancho Trabuco Reservoir to recoat the tank exterior. Page 74

75 Board of Directors January 20, 2017 Page 3 Perform inspections and evaluated performance of the Upper Oso and Portola dams with Genterra Engineering. Solicited and received quotes for roof repairs at Melinda, Altisima, and Horno sites. Pictured to the right is Maintenance Mechanic, Jarrod Walker who was hired in October The below pictures are some of the projects he worked on in December. 1. Replacing a mechanical seal on Pump #1 at Coto Lift Station. 2. Removing Pump #3 for refurbishment at Foothill Pump Station. 3. Preparing Pump #4 heat exchanger to be installed at Mesa Pump Station. Hydrant Crews Streets/Valve and Replaced 9x 1 domestic service lines. Replaced 1x 1 service saddle. Replaced 4x 1 Domestic plastic poly service lines. o The FY2017 Business Plan has an annual goal of 25 lines and over 30 have been replaced so far. o Pictured to the right is Maintenance Mechanic, Jimmy DeAnda assuring quality workmanship during service line replacement. Replaced 4x 24 sewer manhole rings. Repaired 1x fire hydrant auxiliary valve. Worked with contractors in repairing the 16 recycle transmission main in Casta del Sol Golf Course. Repaired 14 2 air vacuum valves. Performed underground location duties of district facilities for inspections crew. Assisted Customer Service Crew with 40 initial and final work orders. Page 75

76 Board of Directors January 20, 2017 Page 4 Pictured to the right is the Streets crew exposing a 2 domestic water service line break. o The crew replaced 2 domestic water service lines in December. Prepped Pico Lift Station bypass system for emergency use. Exercised 199 valves. Completed 2x fire flow tests. Rebuilt 2x fire hydrants. Replaced 2x fire hydrants. Pictured to the right is flood preparation at the 3A Plant which consisted of dewatering and removing the Tiger Dams as well as unloading and setting 400 of concrete K-Rail. Installed 2 construction meters. Replaced 2x ¾ X 1 angle stop. Replaced 2x 2 X 2 angle stop. Assisted water systems crew with valve repairs at SC-2 and setting up scaffolding for structural inspections at Foothill Reservoir. Completed monthly preventative maintenance tasks on all sewer force mains and the outfall lines throughout the District. Collections Crew General line cleaning completed: 47,270 ft. CCTV Inspections & preventative maintenance work orders: 3,140 ft. Trouble Spot P/M W/O s: 20,360 ft. Vactored and cleaned North Beach Lift Station wet well for the water systems and mechanical crews to pull Pump #2 for repairs. As seen in the photo below, manhole rehab projects were completed in Talega, Ladera Ranch and Coto de Caza. Assisted inspectors in removing bulkheads in PA-2 to release tracks for occupancy. Page 76

77 Board of Directors January 20, 2017 Page 5 Safety Assisted the Streets Crew with vactoring services to perform maintenance in the SCP air vacuum valve vault. Performed inspection at the NWRP and made corrections to the storing containment area and vent piping system for the methanol injection system. This system meets all requirements of the methanol safety data sheet. Monitored the set-up and use of the 28 scaffolding throughout the structural inspection process of the Foothill Reservoir tank. The District Confined Space Entry/Rescue trailer received a wrap which showcased the purpose of the trailer and provides a more attractive and professional appearance. Page 77

78 Board of Directors January 20, 2017 Page 6 Electrical/ Instrumentation One of the power supply leads from Southern California Edison (SCE) shorted out causing a power failure at Plano Lift Station. o Emergency power and backup system came on line and powered the station with no service interruptions or close calls. o Pictured on the right is Chad Shinkle, Sr. Electrical/Instrumentation Technician, led crews and worked with SCE in quickly replacing all four main supply leads from the transformer to the meter. Operations Administration Congratulations to Eric Smith and Danny Peterson on their recent promotions. o Eric Smith was hired in 1998 as a meter reader and served as the Water Systems Foreman until his promotion. He currently has Distribution 5, Treatment 2, and Collections 3 certifications. Eric has been recently involved in the operation of Upper Chiquita Reservoir, Gobernadora, and the Los Patrones line. He was promoted to Operations Field Superintendent where he will be responsible for water systems (domestic/recycled/wastewater), mechanical crew, and fleet maintenance. o Danny Peterson was hired in 2010 as a customer service representative and served as the Administrative Analyst until his promotion. He currently has a Distribution 1, Treatment 1, and is scheduled to graduate in the spring with an M.S. in Water Resource Management. Danny has been recently involved in the cellular management program, billing for the South County Pipeline, and the water loss program. He was promoted to Operations Business Manager where he will be responsible for the regulatory and administrative aspects of the District s operations department and will oversee the laboratory, facilities, and operations administrative staff. Page 78

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81 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Jim Leach External Affairs Activity Report SUMMARY Issue: The following contains legislative, regulatory, media, and community relations information for December. Recommendation: Information only. Fiscal Impact: None anticipated. Previous Related Action: The District receives a monthly report on legislative and regulatory activities and information, outreach and community relations activities, and other external relations matters. DISCUSSION Legislative/Regulatory Update to S. 612: Water Infrastructure Improvements for the Nation Act (WIIN) The President signed into law this comprehensive compromise bill. Dir. Gibson, Dick Ackerman and Staff have met with Bill Christiansen of Cong. Issa s office and a meeting with the congressman s DC staff is being developed for the end of February during the ACWA DC Conference. SMWD Impact: Could provide financing opportunities, permitting and other benefits for our San Juan Watershed Project and other SMWD initiatives. SWRCB State of California Long Term Framework to Make Water Conservation a California Way of Life Draft Framework Staff provided a comment letter on December 19 and joined in a state-wide coalition letter following Board approval. The SWRCB continues to hold informational hearings regarding continuation or extension of emergency drought regulations (the next is January 18) in which our Sacramento consultants are participating on our behalf. SMWD Impact: Results could include both short and long-term regulations that impede SWMD s efforts at supply and system reliability and have an impact on the District financially. OC Flood Control District Proposal for OCFCD Revenue Enhancement through ROW Encroachment License Agreements Staff continues to work on ensuring that SMWD is not affected by the OCFCD s proposal for revenue enhancement through license agreements. The Page 81

82 Board of Directors January 20, 2017 Page 2 Right of Entry Agreement was presented at the December 6 County Board meeting and continued to the January 10, 2017 meeting and continued again to the January 24 meeting. SMWD Impact: Implementation of the proposed license agreement scheme and pricing could result in significant increase in ROW encroachment costs. Communication and Outreach The following section contains insight into SMWD s community outreach and digital communications activity. SMWD has recently shared information that focuses on: Rates San Juan Watershed Project Upcoming landscape classes Drought Popular Facebook & Twitter Photos: Page 82

83 Board of Directors January 20, 2017 Page 3 Past Community Events SMWD Rate Open Houses: o January 11, 2017 o January 12, 2017 San Juan Watershed Scoping Session Upcoming Community Events SMWD Rate Open Houses: o January 19, 2017 o January 25, 2017 Save the Date Water Festival is May 20, 2017 Rate Open House #1 at SMWD Rate Open House #2 at Casta del Sol San Juan Watershed Scoping Session Other Activity January 3 Staff participated in a roundtable discussion with public affairs and legislative affairs representatives from MWDOC, IRWD, Mesa, and OCWD regarding the upcoming regulatory and legislative issues surrounding the California WaterFix/EcoRestore, SWRCB long-term conservation strategy, and other issues. This group, which includes the most active agencies in this area, plans to meet regularly to ensure collaboration on key issues. Page 83

84 Board of Directors January 20, 2017 Page 4 January 5 Staff prepared draft remarks for Dir. Gibson for the MWDOC Board and Member Agency Elected Officials Forum relative to collaboration on efforts to take advantage of opportunities emanating from the WIIN passage at the federal level. The Forum, in addition, to the routine overview of the water supply, focused on two significant items: The Governor s Executive Order B Making Water Conservation a California Way of Life; and, The California Water Fix & Eco-Restore project The emphasis on both these issues was on the need for extraordinary collaboration on outreach and education of not only State elected and regulatory officials, but on local and regional business and civic organizations that should participate in the discussion at the state level. OCBC, ACC- OC and the BIA executives attended and participated in the discussion. Participating agencies and organizations are being asked to: Adopt resolutions and/or sign on to letters relative to the long-term framework, regulatory issues and supporting the WaterFix/EcoRestore project. Actively engage with State and Federal elected officials on the issues and the project Actively oppose any legislation or regulation scheme that would have a detrimental impact on agencies and impedes or delays the advancement of completing the WaterFix project. The full presentation is Attachment A. January 11 Staff participated in the first of four open house events concerning the upcoming rate restructure/adjustment. January 12 Staff participated in the second of four open house events concerning the upcoming rate restructure/adjustment. Staff also participated in the San Juan Watershed Scoping Session in San Juan Capistrano. Page 84

85 Attachment A 1/10/2017 ELECTED OFFICIALS FORUM Municipal Water District of Orange County January 5, 2017 ELECTED Click to add OFFICIALS title FORUM Agenda WATER SUPPLY UPDATE EXECUTIVE ORDER B MAKING WATER CONSERVATION A CALIFORNIA WAY OF LIFE CALIFORNIA WATER FIX & ECO RESTORE ROUNDTABLE DISCUSSION Page 85 1

86 1/10/2017 WATER SUPPLY UPDATE Click to add title Northern California Accumulated Precipitation INCHES INCHES Monthly Precipitation (8 Station Precip Index) % of Normal OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Historical Average Monthly Total Accumulated Precipitation (8-Station Precip Index) 33.8 Inches 176% of Normal 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Historical Average Water Year16-17 Page 86 2

87 1/10/2017 Click to add title Historical Northern California Accumulated Precipitation Snow Click Water to add title Equivalent Satellite Image 1/05/ % Liquid Equivalent 10 Units Snow 2 Units Water Page 87 3

88 1/10/2017 Click Mammoth to add (40 title to 84 Snowfall last 48 Hours) 1/05/2017 Historical Click add Local titleprecipitation 35 Santa Ana Year by Year Rainfall Comparison Historical Average Wettest Year ( ) Driest Year ( ) Rainfall (Inches) Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec 1 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun Page 88 4

89 1/10/2017 Click Reservoir to add Storage title Click to add SWP title Table Allocation 100% Initial Allocation Final Allocation 75% 60% 50% 25% 30% 35% 5% 5% 20% 10% 10% 20% 45 % 0% Page 89 5

90 1/10/2017 CALIFORNIA DROUGHT EMERGENCY Click to add title October 2014 California 100% Drought 82% Extreme/Exceptional January 2017 California 81% Drought 38% Extreme/Exceptional ELECTED Click to add OFFICIALS title FORUM Agenda WATER SUPPLY UPDATE EXECUTIVE ORDER B MAKING WATER CONSERVATION A CALIFORNIA WAY OF LIFE CALIFORNIA WATER FIX & ECO RESTORE ROUNDTABLE DISCUSSION Page 90 6

91 1/10/2017 EO B 37 16: Making Water Conservation a California Way of Life Click to add title CONSERVATION AS A WAY OF LIFE KEY CONCEPTS Moving from Emergency (Temporary) to Permanent (ex: Road Medians) Focus is on Conservation Not Supply Targeting Legislative Expansion of Authority Several Items Call for Future Changes 14 Page 91 7

92 1/10/2017 Recap Click to of add Implementation title Draft Report Draft report issued, comments submitted & draft in transit to Governor s Office (January 20 th ) Final report to be published late January/early February Some initial proposals were modified with public input (Annual 5 year analysis) Peculiar approach to demonstrated planning problem Urban Suppliers versus Rural/Small Suppliers Two Main Areas of Change Existing Drought Response Long term 20x2020 Replacement (Efficiency Targets) Click Temporary to add Actions title Jan 2014 Emergency Proclamation Apr 2014 Emergency Proclamation Sep 2014 Executive Order B Apr 2015 Executive Order B Nov 2015 Executive Order B May 2016 Executive Order B Permanent Actions Urban Water Management Plan SBX x 2020 Implementation of Executive Order B Page 92 8

93 1/10/2017 Click to add title Emergency Actions Voluntary 10% reduction Mandatory 25%, then 8% 36% reductions Onetime Stress Test using 3 very dry years Water Saving Efficiency Targets Stress Test Current plus 1 Dry Year Planning Refinements to 5 Year Planning Executive Click to add Order titleobjectives Page 93 9

94 1/10/2017 Legislative Click to add Focus title CHAPTER ORGANIZATION Existing Authorities New & Expanded Authorities REPORT PRODUCTION PROCESS SCHEDULE RUMORED GUBERNATORIAL LEGISLATIVE PACKAGE Expanded Click to add Reporting title Schedule Every 5 Years: Urban Water Management Plan, Water Shortage Contingency Plan, and Drought Risk Assessment Annually: Water Budget Forecast including an indication of the shortage reduction Monthly: Reporting on water usage, amount of conservation achieved, and any enforcement efforts Page 94 10

95 1/10/2017 Click to add title Legislation and Regulatory Rulemaking Priorities highlighted in Draft Report New and/or expanded authorities Provide Funding for Conservation and Efficiency (Public Goods Charge?) Improved drought planning for rural communities and small water suppliers. Eliminate barriers to co funding projects with water and energy benefits Anticipated code amendments to support framework implementation: Establish New Water Use Standards and Targets Strengthening Water Shortage Contingency Planning Strengthening Requirements for Agricultural Water Management Areas Click to of add Concern title Permanent restrictions Medians Framework lacks supply and demand linkage Does not address problem with rural and small system Efficiency Standards Changes will be Legislative or Administrative? Page 95 11

96 1/10/2017 ELECTED Click to add OFFICIALS title FORUM Agenda WATER SUPPLY UPDATE EXECUTIVE ORDER B MAKING WATER CONSERVATION A CALIFORNIA WAY OF LIFE CALIFORNIA WATER FIX & ECO RESTORE ROUNDTABLE DISCUSSION CALIFORNIA WATER FIX & ECO RESTORE Page 96 12

97 1/10/2017 Click to add title CALIFORNIA WATERFIX BACKGROUND FINAL EIR/EIS RELEASED DECEMBER 30, 2016 STATE WATER PROJECT: 1960 PERIPHERAL CANAL: 1982 BAY DELTA CONSERVATION PLAN (BDCP): 2006 DRAFT BDCP EIR/EIS: 2013 RECIRCULATED DRAFT EIR/EIS: 2015 FINAL EIR/EIS: 2016 INTERIOR DEPT. SECRETARIAL ORDER (1 4 17) 25 CA Click WaterFix to add title & EcoRestore Page 97 13

98 1/10/2017 Click to add title CALIFORNIA WATERFIX KEY POINTS STATE WATER PROJECT Serves 25 million Californians (64% of CA population) Sustains 3 million acres of Agriculture Provides 30% of water supply for Southern California Provides 20% of water supply for Orange County FINAL EIR/EIS RELEASED DECEMBER 2016 CALIFORNIA WATERFIX PROJECT & EIR/EIS 100 Alternatives 18 Project Alternatives + No Action Alternative (15,000 cfs to 3,000 cfs) Alternative 4A 2 Tunnels 35 miles long x 40 feet diameter 9,000 cfs AVAILABILITY OF WATER SUPPLY IS LINKED TO FISH POPULATIONS 27 California Click to add Water title Fix Economic Reliability 28 SWP CVP Exports (million AF) Improved State and Federal Water Project Reliability Existing Regulations (No Action) (Annual Average in 2025) BDCP Regulations without North Intake 1.2 MAF Less Earthquake Scenario NEW BDCP/CA Water Fix Page 98 14

99 1/10/2017 Click to add title CALIFORNIA WATERFIX SCHEDULE BIOLOGICAL OPINIONS (Section 7 Consultations) Initial Draft BIOPS January 2017 Final Draft BIOPS March 2017 Final BIOPS April 2017 FINAL EIR/EIS RELEASED DECEMBER SPRING/SUMMER 2017 Bureau of Reclamation Issues Record of Decision (ROD) DWR Certification of Final EIR/EIS DWR Project Approval DWR Issues Notice of Determination OTHER ACTIONS Cost Share Negotiations Regulatory Permits (USACOE, CDFW; SWRCB, etc.) LAWSUITS Click to add title CALIFORNIA WATERFIX NORTH SOUTH POLITICS 30 Page 99 15

100 1/10/2017 Click to add title CALIFORNIA WATERFIX OC ACTION PLAN TAKE A FORMAL STAND PASS A RESOLUTION OF SUPPORT RESOLUTION NO MUNICIPAL WATER DISTRICT OF ORANGE COUNTY SUPPORT FOR THE CALIFORNIA WATER FIX AND CALIFORNIA ECO RESTORE WHEREAS, the Delta, formed by the confluence of the Sacramento and San Joaquin Rivers as they come together and flow into San Francisco Bay, is a major water hub for California s water supply system for the majority of the State, including 30% of the supplies for Southern California, and therefore underpins the overall economy of California, which stands equivalent to the 6 th largest Country in the world; and, (+) 19 NOW THEREFORE BE IT RESOLVED THAT the Municipal Water District of Orange County does hereby support the California Eco Restore and California Water Fix Preferred Alternative (No.4A) as described in the environmental documents with reasonable adherence to the current, public operating criteria and cost allocation principles and assumptions. Click to add title CALIFORNIA WATERFIX OC ACTION PLAN TAKE A FORMAL STAND PASS A RESOLUTION OF SUPPORT ACTIVELY OPPOSE ADVERSE LEGISLATION DIRECT & INDIRECT Page

101 1/10/2017 Click to add title CALIFORNIA WATERFIX OC ACTION PLAN TAKE A FORMAL STAND PASS A RESOLUTION OF SUPPORT ACTIVELY OPPOSE ADVERSE LEGISLATION DIRECT & INDIRECT MAKE IT A PRIORITY WITH OC s DELEGATIONS FEDERAL & STATE REPEATED, CONSISTENT MESSAGE ELECTED OFFICIALS FORUM Municipal Water District of Orange County January 5, 2017 Page

102 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Beth Geldert Customer Relations Update Call Activity: December 2016 call activity had a decrease of 12% from November 2016 and decreased 11% from the same period in CALL ACTIVITY MONTH BALANCE INQUIRY DELINQUENCY INQUIRY DROUGHT INQUIRY VARIANCE HIGH CONSUMPTION INQURIY REGARDING POSSIBLE LEAK REBATES RATES TELEPHONE PAYMENTS TURN ON/OFF SERVICE WATERSMART OTHER TOTAL Dec ,551 Nov ,902 Oct ,981 Sep ,235 Aug-16 1, ,569 Jul ,481 Jun-16 1, ,535 May-16 1, ,708 Apr ,278 Mar-16 3, ,125 Feb-16 1, ,323 Jan ,028 Dec-15 1, ,871 Notes: March 2016 staff accepted twice as many calls as is typical for any given month. The increase was due to the revised rate structure. Working with the Public Relations team we were able to ensure information was available to our customers in various formats. The teams worked together efficiently and effectively. Began tracking VARIANCE inquiries March December 2016 holiday schedule (2.5 days) resulted in considerable reduction in incoming calls for the month of December Page 102

103 Board of Directors January 20, 2017 Page 2 Late Fee Penalties and Non-Payment Disconnect Processes: Late Fees are assessed 35 days after the bill date. 10% is assessed on the current balance. Non-Payment Disconnections Accounts with a delinquent balance over $50.00 and 55 days past due. Customer Relations Specialists accept the weekly challenge and their goal is to make contact with all customers in jeopardy of disconnection and encourage them to make payment arrangements with a result of zero accounts disconnected on Thursday. Customer Relations processed 92 accounts for non-pay disconnection and actually disconnected 57 accounts in December 2016, resulting in a 4% decrease from the prior month, November December 2016 disconnect total was typical of prior years. Customer Relations Department does not process disconnects the two weeks of December due to holiday schedules. New Connections: There was an increase from November 2016 to December 2016 of 78 connections (78 dwelling units). The majority of new connections were installed in the new planning area Esencia. Fiscal year to date connections have increased by 354 meters 42% of the projected number of new connections for FY2017. Page 103

104 Board of Directors January 20, 2017 Page 3 Consumption Activity Page 104

105 Board of Directors January 20, 2017 Page 4 Page 105

106 Board of Directors January 20, 2017 Page 5 Santa Margarita Water District Customer Relations Billing Activity as of December 2016 Accounts Receivable Water, Wastewater and Recycled Water Water & Wastewater Balance Percent of Total $ # of Customer Accounts Percent of Accounts Current $ 2,567, % 41, % Over , % 9, % Over , % 5, % Subtotal $ 2,884, % 56, % Annual Water & Wastewater Sales Accrual 2,427,611 Total Accounts Receivable $ 5,312,091 Increase in Over 35 and Over 60 accounts due to no collection activity during the months of October, November and December. Processing was limited due to staff member out on leave. The Water, Wastewater and Recycled Water Accounts Receivable (AR) aging has seasonal fluctuations due to the increase/decrease in consumption. Page 106

107 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Daniel Ferons Water Use Efficiency Tracking Update DISCUSSION: Cumulative Totals The District s cumulative reduction for the year was at 19% for December. The month s water use was 13% less than average of December 2013 and 2014 water use. The chart and graph shown provide actual Calendar Year 2016 monthly water use compared against the 2013/2014 average. The State Board s water supply certification uses the monthly average of 2013 and 2014 water use as the baseline for comparison. Page 107

108 Board of Directors January 20, 2017 Page 2 SMWD Major Service Area Reductions For the month of December, for the first time in several months, reductions in half of our major service areas were well outside of the Conservation Ordinance range requirement of 10% - 20%. Major outliers include Talega and Coto de Caza at 2%, Ladera Ranch at 4%, and Hidden Ridge at 8%. Las Flores and Mission Viejo were within the required range and Mission Viejo was the top reducer for the month. San Juan Watershed Project The Notice of Preparation (NOP) of an Environmental Impact Report (EIR) and Public Scoping Meeting Notice as distributed to a list of over 200 regulators, elected officials, Non-governmental organizations (NGO,) and other interested parties, stakeholders and citizens on November 30. The notice outlines the February 2, 2017 deadline for comments overall and sets out the date for the Page 108

109 Board of Directors January 20, 2017 Page 3 Public Scoping Session where we anticipate we will hear ideas, concerns and suggestions relative to the project and important in the development of the EIR. The Public Scoping Session was held on January 12, 2017 at the San Juan Capistrano Community Center from 6 p.m. until 8 p.m. A copy of the NOP presentation is included as Attachment A. State Water Resources Control Board State Water Resources Control Board (SWRCB) announced a public workshop to receive input on extension and potential modification of the current Emergency Regulation for Statewide Urban Water Conservation in place since May of The SWRCB indicated in the notice that there is interest, specifically, in public comment on the following questions at this workshop: 1. What elements of the existing May 2016 Emergency Regulation, if any, should be modified? Should the State Water Board wait until the hydrology for the current water year is known (April or later) before proposing adjustments to the current method for calculating conservation standards? And, should the State Water Board allow suppliers to update or modify their conservation standard calculations (and if so, how)? 2. Should the State Water Board account for regional differences in snowpack, precipitation, and lingering drought impacts differently than under the current emergency regulation, and if so, how? 3. Executive Order B requires the Board to develop a proposal to achieve a mandatory reduction in potable water use that builds off the mandatory 25 percent reduction in previous Executive Orders and lessons learned through The Board, however, is not required to act on this proposal. Should the Board act now, or later if conditions warrant, to a conservation standard structure like the one the Board adopted in February 2016 to achieve a mandatory reduction in water use? Should the Board set a conservation floor, individually or cumulatively? In response, Staff submitted a letter included as Attachment B. Page 109

110 Attachment A San Juan Watershed Project California Environmental Quality Act EIR Scoping Meeting January 12, 2017 Page 110

111 Meeting Agenda Purpose of Meeting CEQA Overview Project Components CEQA Environmental Topics CEQA Schedule Public Comments Page 111

112 Project Summary San Juan Watershed Project Proposed by the Santa Margarita Water District (SMWD) and South Coast Water District (SCWD), both member agencies of the San Juan Basin Authority (SJBA) Augments and manages local groundwater supplies through the capture and recharge of surface water within San Juan Creek and Arroyo Trabuco Creek Helps to develop local water resources, reducing the region s dependence on imported water Information More project information can be found at: Page 112

113 Purpose of Meeting Public Scoping This is a Scoping Meeting compliant with the California Environmental Quality Act (CEQA). Initiate CEQA Process Notify public that an Environmental Impact Report (EIR) is being prepared for the Project. Page 113

114 California Environmental Quality Act (CEQA) Page 114

115 CEQA Process for an EIR We are here Page 115

116 Notice of Preparation (NOP) (CEQA Guidelines 15082) An NOP is required by CEQA to announce that a lead agency is preparing an EIR for a project. The NOP facilitates a scoping process to gather stakeholder input on what potential impacts the EIR should consider. Comments from stakeholders help to focus the EIR analysis on stakeholder concerns. Page 116

117 Project Background Implemented by the SMWD and SCWD to benefit the member agencies of the San Juan Basin Authority (SJBA). In 2014, SJBA completed the San Juan Basin Groundwater and Facilities Management Plan (GFMP). The GFMP identified in-stream stormwater capture and recharge as the most immediately achievable objective. Page 117

118 Project Overview The Project would be constructed in multiple phases. Phase 1 would include installation of three rubber dams within San Juan Creek and/or Arroyo Trabuco Creek. Page 118

119 Regional Location Page 119

120 Project Area Page 120

121 Project Components Phase 1 Installation of three rubber dams within the improved sections of San Juan Creek and Arroyo Trabuco Creek Possible modifications to groundwater treatment facilities Page 121

122 Phase 1: Rubber Dam Locations Page 122

123 Rubber Dams Rubber dams would create a series of ponds within the stream channel, maximizing the wetted area of the channel to promote infiltration. Rubber dams would be designed with fish passage capabilities Gobernadora Rubber Dam, Orange County, CA Gobernadora Rubber Dam, Orange County, CA Page 123

124 Project Components Future Phases Subsequent phases would: Construct additional rubber dams within San Juan and Arroyo Trabuco Creek Incorporate recycled water for recharge within the creek channel Manage groundwater volume and flow through construction of additional facilities may include: Recovery facilities (groundwater extraction wells) Conveyance facilities Expanded groundwater treatment facilities Future phases will be assessed at a programmatic level in this EIR Later phases still largely conceptual Page 124

125 Topics to be Analyzed in EIR Direct, Indirect and Cumulative impacts to: Aesthetics Agriculture & Forestry Air Quality Biological Resources Cultural Resources Geology, Soils & Seismicity Greenhouse Gas Emissions Hazards & Hazardous Materials Hydrology & Water Quality Land Use & Planning Noise and Vibration Population & Housing Public Services Recreation Traffic & Transportation Utilities, Services & Energy Page 125

126 Topics to be Analyzed in EIR Biological Resources In-stream aquatic habitat values including fish passage values Riparian habitat values Groundwater Aquifer volume and mounding effects Groundwater quality San Juan and Trabuco Creek San Juan Creek Page 126

127 Topics to be Analyzed in EIR Growth Inducement Alternatives No Project Alternative Alternatives that lessen significant impacts while still meeting Project Objectives Page 127

128 CEQA Schedule Next Steps Scoping Period Ends Feb. 2, 2017 Draft EIR Publication Summer 2017 Final EIR Publication Fall 2017 Page 128

129 NOP Comments Website: Comment period closes February 2, 2017 Submit comments tonight or or Mail comments to: Tom Barnes ESA 626 Wilshire Boulevard, Ste Los Angeles, CA Phone: (213) Page 129

130 BOARD OF DIRECTORS CHARLES T. GIBSON JUSTIN McCUSKER BETTY H. OLSON, PH.D SAUNDRA F. JACOBS CHARLEY WILSON DANIEL R. FERONS GENERAL MANAGER January 12, 2016 VIA Attn: Jeanine Townsend Clerk to the Board State Water Resources Control Board 1001 I Street, 24th floor Sacramento, CA SUBJECT: Proposed extension of the May 2016 Emergency Conservation Regulation The Santa Margarita Water District (SMWD) appreciates the opportunity to provide comments to the proposed extension of the May, 2016 Emergency Water Conservation regulation. We provided comments to the Draft Report on the Proposed Framework for the implementation of Executive Order B (EO.) Today, we are responding to the three specific questions raised by the Board relative to the extension of the May, 2016 regulations. The Board stated, A readopted Emergency Regulation would extend through October The State Water Board is interested specifically in public comment on the following questions at this workshop 1. What elements of the existing May 2016 Emergency Regulation, if any, should be modified? Should the State Water Board wait until the hydrology for the current water year is known (April or later) before proposing adjustments to the current method for calculating conservation standards? And, should the State Water Board allow suppliers to update or modify their conservation standard calculations (and if so, how)? SMWD feels strongly that the Board should wait until full hydrology is known and final State Water Project (SWP) allocation is determined by the Department of Water Resources (DWR.) Suppliers will be able to coordinate with their water wholesalers and update their supply forecast based on this information. This evaluation can then inform an updated stress test supply-based conservation standard. References continue to be made that Southern California remains in drought while Northern California has been getting rain and snow recently. It is important to note that our sources of supply for the southern part of the state come, to a certain extent, from Northern California. So, despite the paucity of precipitation in southern California over the last year (it should be noted that we have received a significant amount of rain in the past two to three months,) the hydrology of southern California does not significantly affect southern California s water supply forecast. The state must take not only precipitation in its various forms into account, but availability of storage, where southern California Page 130

131 2 leads. Additionally, the snowpack in the Colorado River basin is well above normal and contributes to the water supply diversity that southern California is able to draw upon. Water managers must make adjustments based on changing hydrology; so, too, should the stress-test supply-based conservation standard be adjusted and updated to reflect current and future hydrology. 2. Should the State Water Board account for regional differences in snowpack, precipitation, and lingering drought impacts differently than under the current emergency regulation, and if so, how? SMWD feels strongly that the Board should not discriminate by region in any new or renewed regulation by considering precipitation only. Rather, the Board should also take into account available storage, water supply availability and current planning for development of alternative supply by agencies. The stress test supply-based conservation standard does a good job of accounting for regional differences in water supplies and storage and we support its continuation. 3. Executive Order B requires the Board to develop a proposal to achieve a mandatory reduction in potable water use that builds off the mandatory 25 percent reduction in previous Executive Orders and lessons learned through The Board, however, is not required to act on this proposal. Should the Board act now, or later if conditions warrant, to a conservation standard structure like the one the Board adopted in February 2016 to achieve a mandatory reduction in water use? Should the Board set a conservation floor, individually or cumulatively? SMWD believes that the stress test supply-based standard adopted in February 2016 is far more appropriate than setting a one-size-fits-all conservation floor. While no one knows what the future will hold for drought conditions it would be counter-intuitive to implement mandatory reductions now given that 1) the current year hydrology is not yet known; and, 2) the current level and outlook for precipitation is good. Furthermore, the stress test supply-based standard continues to incentivize agencies to invest in long-term sustainable water supplies while continuing to implement agencyappropriate demand management strategies. In short, the Board is laying the groundwork for the process of implementing the Executive Order and preparing to take steps, if necessary, to effect conservation at an appropriate time once the full hydrology is understood. It should also focus attention on encouraging investment in new supply in any new or renewed approach. Sincerely, SANTA MARGARITA WATER DISTRICT Daniel R. Ferons General Manager Cc: The Honorable Frances Spivy-Weber, Vice Chair, State Water Resources Control Board The Honorable Dorene D'Adamo, Member, State Water Resources Control Board The Honorable Steven Moore, Member, State Water Resources Control Board The Honorable Tam Doduc, Member, State Water Resources Control Board Mr. Tom Howard, Executive Director, State Water Resources Control Board Mr. Eric Oppenheimer, Chief Deputy Director, State Water Resources Control Board Page 131

132 MEMORANDUM TO: Board of Directors DATE: January 20, 2017 FROM: SUBJECT: Dan Ferons South County Update DISCUSSION As part of the South County Update discussion in anticipation of upcoming South County Group meeting, the following items are the key points for consideration this month: 1. Municipal Water District of Orange County (MWDOC) request for member agencies to consider formal support of the California Waterfix. 2. MWDOC and Orange County Water District s proposed joint resolution concerning the Poseidon Huntington Beach project and the attached letter from IRWD. 3. MWDOC s Financial Reserve Policy and upcoming budget. Page 132

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