SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT380 E. Vanderbilt Way, San Bernardino, CA 92408

REGULAR MEETING OF THE BOARD OF DIRECTORS

AGENDA

2:30 PM Tuesday, October 3, 2017

CALL TO ORDER/PLEDGE OF ALLEGIANCE/ROLL CALL

1. PUBLIC COMMENT - Any person may address the Board on matters within its jurisdiction.

2. APPROVAL OF MINUTES

2.1. September 19, 2017, MeetingMinutes 9-19-17

3. DISCUSSION AND POSSIBLE ACTION ITEMS

3.1. Consider Adoption of Resolution No. 1060 Supporting the California WaterFix ProjectBoard Memo California WaterFix Resolution 10-03-17Resolution 1060 CWF SupportRecommendation of Advisory Comm CWF letter

4. REPORTS (DISCUSSION AND POSSIBLE ACTION)

4.1. Park Management and Property Workshop, September 13Summary Notes PMP 091317

4.2. Strategic Analysis/Plan Committee Workshop, September 14Summary Notes SAP 091417

4.3. Advisory Commission on Water Policy, September 14Summary Notes ACWP 091417

4.4. Water Use Efficiency Committee Workshop, September 20Summary Notes WUE 092017

4.5. Baseline Feeder Committee Workshop, September 21 1

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Summary Notes BLF 092117

4.6. San Bernardino Regional Water Resources Authority, September 25Summary Notes SBRWRA 092517

4.7. SAWPA Commission Workshop, October 3

4.8. Directors' Activities

5. ANNOUNCEMENTS

5.1. List of MeetingsList of Announcements2017 List of Board and Committee Meetings

6. CLOSED SESSION

6.1. Conference with Legal Counsel - Initiation of Litigation - Pursuant to Government CodeSection54956.9(d)(4) - 1 case

6.2. Conference with Legal Counsel – Pending Litigation – Pursuant to Government Code Section54956.9(a),(d)(1) – Inland Valley Development Agency v San Bernardino Valley Municipal WaterDistrict et al – Case No. CIVDS1621986 (San Bernardino Superior Court)

6.3. Conference with Legal Counsel – Existing Litigation – Pursuant to Government Code Section54956.9(a),(d)(1) – San Bernardino Valley Municipal Water District et al v. San Gabriel ValleyWater Company et al – Case No. CIVDS1311085 (San Bernardino Superior Court)

6.4. Conference with Legal Counsel – Existing Litigation – Pursuant to Government Code Section54956.9(d)(1) – Sterling Natural Resource Center Litigation – Southern California EnvironmentalJustice Alliance v. San Bernardino Valley Municipal Water District and City of San Bernardino v.San Bernardino Valley Municipal Water District (San Diego County Superior Court No.37-2016-00032816-CU-TT-CTL) and City of San Bernardino v. East Valley Water District (SanDiego County Superior Court No. 37-2016-00038119-CU-WM-CTL); Wastewater ChangePetition No. 0095 Filed by San Bernardino Valley Municipal Wate

6.5. Conference with Legal Counsel – Existing Litigation – Pursuant to Government Code Section54956.9(a),(d)(1) – Endangered Habitats League v. U.S. Army Corps of Engineers - Case No.2:16-CV-09178 (U.S. District Court, Central District of California)

6.6. Conference with Legal Counsel – Existing Litigation – Pursuant to Government Code Section54956.9(a),(d)(1) – Coalition to Protect Highland v City of Highland Case No. CIVDS1604787

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(San Bernardino Superior Court

6.7. Conference with Legal Counsel - Anticipated Litigation - Pursuant to Government Code Section54956.9(d)(2),(3) - 1 case (Bay-Delta WaterFix Project and the Bay-Delta Water Quality ControlPlan Update)

6.8. Conference with Real Property Negotiators - Pursuant to Government Code Section 54956.8 -Property APN Nos. 0140-143-47, 0140-143-05, 0140-143-04, 0140-143-52, 0140-143-41,and 0140-143-55 - Owner: San Bernardino Valley Municipal Water District - Under Negotiation:Price - Agency Negotiator: Douglas Headrick

7. ADJOURNMENT

PLEASE NOTE: Materials related to an item on this Agenda submitted to the Board after distribution of the agenda packet are available forpublic inspection in the District’s office located at 380 E. Vanderbilt Way, San Bernardino, during normal business hours. Also,such documents are available on the District’s website at www.sbvmwd.com subject to staff’s ability to post the documentsbefore the meeting. The District recognizes its obligation to provide equal access to those individuals with disabilities. Pleasecontact Lillian Hernandez at (909) 387-9214 two working days prior to the meeting with any special requests for reasonableaccommodation.

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MINUTESOF

THE REGULAR BOARD MEETING

SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT

September 19, 2017

Directors Present: Susan Longville, Gil Navarro, Mark Bulot, Steve Copelan, and June Hayes

Directors Absent: None

Staff Present: Douglas Headrick, Bob Tincher, Wen Huang, Cindy Saks, Brendan Brandtand Lillian Hernandez

Registered Guests:

Benjamin G. Kelly, Western Heights Water Company

Ronald Coats, East Valley Water District

Charles Roberts, Highland Community News

Linda Gonzalez, West Valley Water District

Josh Swift, Fontana Union Water Company

Cris Fealy, Fontana Water Company

Joseph W. Mays, Jr., West Side Action Group

Melody McDonald, San Bernardino Valley Water Conservation District

The regular meeting of the Board of Directors was called to order by President Longville at 2:30 p.m. at the District office, 380 E. Vanderbilt Way, San Bernardino. A quorum was noted present.

Agenda Item 1. Public Comment.

President Longville invited any members of the public to address the Board. Linda Gonzalez, West Valley Water District Board Member, announced that Don Olinger was installed as Board President in August 2017.

The meeting proceeded with the published agenda items.

Agenda Item 2. Approval of Minutes of the September 5, 2017, Board Meeting and September 9, 2017, Special Board Meeting.

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Director Bulot moved to approve the minutes of the September 5, 2017, Board meeting and the September 8, 2017, Special Board meeting. Director Hayes seconded. The motion was unanimously adopted.

Agenda Item 3. Discussion and Possible Action Items.

3 a) Consider Contribution to Southern California Water Committee California WaterFix Education and Outreach Program. Douglas Headrick stated that the District has been a member of the Southern California Water Committee (SCWC) for many years. The Committee was formed after the failure of Proposition 9 in 1982 to approve the Peripheral Canal. The Committee has been active in the last few years promoting what was originally called the Bay Delta Conservation Plan now called the California WaterFix. Mr. Headrickpointed out that last month the Board decided to take the money that was in the iEfficient budget to promote the California WaterFix and consider finding another agency to perform that work, like SCWC. Subsequently, the District received a letter request from the SCWC to help fund a portion of the $565,000 Phase 2 education and outreach program for California WaterFix. Charlie Wilson from the SCWC was able to participate in a Board Workshop where staff was asked to place the item on this agenda for consideration. Staff recommended thatthe Board approve the contribution to this program. Mr. Headrick indicated that if the Board chose to contribute they would need to decide where the money would come from. The two choices that were discussed in the workshop are, 1) use $30,000 of the remaining $300,000 in the iEfficient budget already approved for this year or 2) amend the General Fund Budgetline item 6640 to include an additional $30,000 thereby leaving the $300,000 in the iEfficient for advertising should the District need it.

Director Copelan moved approval of funding the $30,000 contribution from the existing iEfficient budget. Director Navarro seconded. The motion was unanimously adopted.

3 b) Consider Support for Assembly Bill 1668 and Senate Bill 606. President Longville stated this was to consider support or opposition to a bill that might be on the governor’s deskon this date. She stated that it is now a two-year bill and made a motion to table the item.

President Longville moved to table the item. Director Hayes seconded. The motion was unanimously adopted

3 c) Consider Study with RAND Corporation. Bob Tincher stated that this item was being forwarded to the Board for consideration by the Strategic Analysis Plan Committee. Staff recommended that the Board authorize a study of the RAND Corporation that would engage the Board in a risk analysis to evaluate the amount of investment to be made in various water management strategies. The general tasks would include providing an independent analysis of the water demand in the District’s service area, analyzing the cost effectiveness of the various water management strategies in the Upper Santa Ana River Integrated Regional Water Management Plan against new more future looking water supplies scenarios that could involve a mega drought and also help to determine the amount of investment in supplies such as recycled water. The total amount of the study would be $249,997. RAND is

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a non-profit research institute that exists to help policy makers make decisions that are based on the best available information. They do research that is peer-reviewed both inside and outside of RAND. Everything they produce is published and made available so that others can benefit from it as well. Staff recommended to authorize staff to enter into the study for $249,997. After discussion, the motion failed.

Director Navarro moved approval of authorizing staff to enter into the study for $249,997 with the RAND Corporation. President Longville seconded. The motion failed by a 2-3 vote with Directors Hayes, Copelan, and Bulot opposing the motion.

President Longville stated that she would like the Board to entertain asking staff to prepare a Request for Proposals for the work they believe the District needs to have done and bring it to a Board workshop for discussion.

Agenda Item 4. Reports (Discussion and Possible Action).

4 a) General Manager’s Report. Douglas Headrick reported that the District’s bond rating was affirmed recently at the existing AAA rating. The San Manual Band of Mission Indians representative has met with District staff to talk an expansion to their casino complex and the impacts that the District’s pipe may have on that expansion. Alternatives are being evaluated.They are looking at the risk and mitigation associated with having a large capacity, high pressure pipe running through the middle of this complex. District staff is providing all of the information they are requesting. The District submitted a letter on SB 5 which is the De Leon water bond bill, asking the author to consider increasing the amount dedicated to the Santa Ana River Conservancy. The request was successful, along with several other letter writers, in getting that increased from $3 million to $16 Million. Mr. Headrick showed photographs of the Waterman Basins emergency cleaning. There was up to one foot of accumulated silt and organic material at the base of the ponds. The last time they were cleaned by the San Bernardino County Flood Control District was in 2006.

4 b) Legislative Report. Brendan Brandt went through the report that was included in the Board packet.

4 c) Board of Directors’ Workshop, September 12, 2017. No oral report was given as a written report was included in the Board packet.

4 d) SAWPA Commission Workshop, September 19, 2017. President Longville reported on the following items:

1. Appointed Richard Haller as the new SAWPA general manager. Ms. Longville handed out a press release.

2. Received a status report on the Inland Empire Brine Line Reach V Rehabilitation and Improvement Project and approved a change order with Hammons Strategies for an amount not-to-exceed $11,250 to extend current work on public information related to the project.

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3. Directed staff to issue a request for proposals for professional services to prepare a new brine line rate model.

4. Conducted a public hearing and adopted Ordinance No. 9 and Resolution 2017-11 establishing new local limits and best management practices for discharges to the brine line.

5. Adjusted the SAWPA medical insurance cap to $1,700.90.6. Took a support position on AB 574 (Quirk) related to direct potable reuse

and directed staff to send a letter of support to the governor.7. Received informational updates on the OWOW 2018 Plan Update and the

Santa Ana Sucker Protection and Beneficial Use Enhancement Project.

4 e) Operations Reports. No oral report was given as a written report was included in the Board packet.

4 f) Treasurer’s Report. Director Hayes presented the Treasurer’s Report. Director Bulotmoved approval of the following expenses for the month of August 2017. The State Water Contract Fund $3,566,760.00, Devil Canyon/Castaic Fund $92,366.00, and General Fund$2,450,048.38. Director Navarro seconded. The motion was unanimously adopted.

4 g) Directors’ Activities.

Director Copelan reported that the Lake Arrowhead Community Services District hosted the Association of the San Bernardino County Special Districts’ dinner at The Grill at Antlers Inn on September 18th. Joseph Byrne from Best Best & Krieger LLP, spoke about the California WaterFix project.

President Longville stated she was invited to an invitation only symposium by the President of the University of California Davis on flood management, land use, and groundwater on October 4th and 5th. She requested authorization for a flight to attend the conference. She invited all of the Directors to attend the Southern California Water Committee annual meeting on October 26th. The District has tickets and she indicated she would attend. Directors Navarro and Hayes indicated they would attend as well.

Director Navarro stated that he is looking forward to the October 11th Northern California Tour.

Director Hayes reported that she attended the East Valley Water District meeting where Kelly Malloy gave a presentation on updated legislative issues.

Director Bulot moved approval of all the requested travel and meetings.Director Hayes seconded. The motion was unanimously adopted.

Agenda Item 5. Announcements.

5 a) List of Announcements. There were no changes to the listing.

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Agenda Item 6. Closed Session.

President Longville adjourned the meeting to Closed Session at 3:09 p.m.

A. Conference with Legal Counsel – Anticipate Litigation – Pursuant to Government Code Section 54956.9(d)(2), (3) – 1 case (Bay-Delta WaterFix Project and the Bay-Delta Water Quality Control Plan Update).

B. Conference with Legal Counsel – Initiation of Litigation – Pursuant to Government Code Section 54956.9(d)(4) – 1 case.

C. Conference with Legal Counsel – Pending Litigation – Pursuant to Government Code Section 54956.9(a),(d)(1) – Inland Valley Development Agency v. San Bernardino Valley Municipal Water District et al – Case No. CIVDS1621986 (San Bernardino Superior Court)

D. Conference with Legal Counsel – Existing Litigation – Pursuant to Government Code Section 54956.9(a),(d)(1) – San Bernardino Valley Municipal Water District et at v. San Gabriel Valley Water Company et – Case No. CIVDS1311085 (San Bernardino Superior Court)

E. Conference with Legal Counsel – Existing Litigation – Pursuant to Government Code Section 54956.9(d)(1) – Sterling Natural Resource Center Litigation – Southern California Environmental Justice Alliance v. San Bernardino Valley Municipal Water District and City of San Bernardino v. San Bernardino Valley Municipal Water District (San Diego County Superior Court No. 37-2016-00032816-CU-TT-CTL) and City of San Bernardino v. East Valley Water District (San Diego County Superior Court No. 37-2016-00038119-CU-WM-CTL); Wastewater Change Petition No. 0095 Filed by San Bernardino Valley Municipal Water District and East Valley Water District (State Water Resources Control Board).

F. Conference with Legal Counsel – Existing Litigation – Pursuant to Government Code Section 54956.9(a),(d)(1) – Endangered Habitats League v. U.S. Army Corps of Engineers – Case No. 2:16-CV-009178 (U.S. District Court, Central District of California)

G. Conference with Legal Counsel – Existing Litigation – Pursuant to Government Code Section 54956.9(a),(d)(1) – Coalition to Protect Highland v. City of Highland – Case No. CIVDS1604787 (San Bernardino Superior Court)

H. Conference with Real Property Negotiators – Pursuant to Government Code Section 54956.8–– Property No. APN 0140-143-47, 0140-143-05, 0140-143-04, 0140-143-52, 0140-143-41, and 0140-143-55 – Owner: San Bernardino Valley Municipal Water District – Under Negotiation: Price – Agency Negotiator: Douglas Headrick –Negotiating Party: Ocean Investment Group LLC

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Pursuant to Government Code Section 54956.9 President Longville returned the meeting to Open Session at 4:06 p.m. and reported that the Board took no reportable action.

Agenda Item 7. Adjournment.

There being no further business, President Longville adjourned the meeting 4:06 p.m.

Respectfully submitted,

Lillian HernandezBoard Secretary

APPROVAL CERTIFICATIONI hereby certify to approval of the foregoing Minutes of San Bernardino Valley Municipal Water District.

__________________________________________________SecretaryDate _____________________________________________

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DATE: October 3, 2017

TO: Board of Directors

FROM: Douglas Headrick, General Manager

SUBJECT: Resolution 1060 Supporting California WaterFix

Summary

Staff has provided three informational briefings to the Board over the last two months on the

California WaterFix (CWF). The topics of these presentations included the project related

infrastructure, operations, and cost and affordability. At the third and final briefing on

September 12, 2017, Staff was directed to place an item on an upcoming Board meeting

agenda to consider:

1. Adopting a Resolution (Attached) supporting California WaterFix and Valley District’s

participation in the project

2. Stating the Board’s intent to pay the construction costs of the California WaterFix with

District cash financial resources.

This recommendation is based on the overwhelming science-based information that confirms

the water supply reliability benefits of the project for Valley District and its constituents.

The District’s Advisory Commission on Water Policy has provided a letter stating their support

for the CWF project. (Attached)

Background

Valley District signed a contract with the State of California on December 30, 1960 for a water

supply from what would later become known as the State Water Project (SWP). The District

has used this contract to supply over 1 million acre-feet of imported water since deliveries 10

started in the early 1970s. However, starting in the mid-1990s and accelerating in the late

2000s, the reliability of the SWP has been reduced due primarily to endangered and threatened

species issues in and around the Sacramento – San Joaquin Delta. In response to this

continuing water supply reduction, the California Department of Water Resources (DWR) in

cooperation with the United States Bureau of Reclamation (USBR) on behalf of the Central

Valley Project (CVP), has been developing a project to increase water supply reliability for the

State. Originally called the Bay Delta Conservation Plan (BDCP), California WaterFix is the

preferred project to resolve many of the current and future conflicts in the Delta.

State and Federal Water Contractor Support for CWF

The CWF functionality (Delta Conveyance) is included in the approved State Water Project

contracts between the State of California and the State Water Project Contractors. However,

the Director of the Department of Water Resources (DWR) is asking that contractor Boards of

Directors consider approving resolutions supporting the project and stating the amount of water

they want to secure from CWF. The purpose of this support position is to determine the level of

participation in the project. Once the participation levels are determined, the final sizing of the

facilities will be determined and, if necessary, new cost estimates developed.

The Zone 7 Water Agency, a State Water Project Contractor in Alameda County, has adopted a

resolution supporting the CWF. Many other State Water Project Contractors have scheduled or

are planning to schedule agenda items for their Board’s consideration of a support position in

the next month. For example, the Metropolitan Water District of Southern California Board is

scheduled to vote on a resolution in support of CWF on October 10.

The Federal CVP contractors are conducting a similar process of determining participation

levels. The Westlands Water District Board, one of the largest CVP contractors, recently voted

to not participate in the project as currently proposed. Their stated reasons for this vote was

that the water was too expensive for the crops they grow. It is likely that other agricultural

contractors will come to the same conclusion. However, some urban contractors will likely

request a larger portion of the project than their allocated percentage. If the net result of these

reductions and increases in demand is significantly different than the water supply capacity of

the currently proposed CWF, the facilities will be re-sized to match the demand for the project

and new cost estimates will be determined.

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For Valley District, Staff continues to recommend that the Board maintain its existing Table A

allocation in the CWF facilities.

Cost Allocation

Staff presented a cost allocation and affordability analysis to the Board in September based on

the cost estimate below.

As presented in the previous Staff report, the CWF is developed under the cost allocation

principles of 1) beneficiary pays, and 2) costs follow the water supply. Based on these

principles, the first cost allocation is between the two main North-South water supply systems,

SWP and CVP. The current estimate for the allocation between the two systems is 55% for the

SWP and 45% for the CVP. However, if some of the CVP Contractors choose to purchase less

than the assumed 45%, additional water supply, at an additional cost, could be made to the

remaining SWP and CVP Contractors or the project could be re-sized. But for now the 55/45

split is the assumption being used by all contractors. This split would allocate $9.2 billion (55%

of $16.7 billion) to the SWP Contractors. Valley District’s allocation of the State Water Project

share is 2.5% or 1.3% of the total CWF. Therefore, the total construction and mitigation cost of

CWF allocated to Valley District is $230 million (2.5% of $9.2 billion). It is important to

remember that these costs will continue to escalate at the construction related price index

throughout the 15-18 year design and construction phase.

In addition to construction related costs as shown in the table above, there will also be ongoing

operational expenses for the CWF. These estimated costs are shown in the table below and

are also be allocated based on the 55/45 SWP/CVP split. Of the $64.4 million per year in

operational, power, and mitigation related costs, the SWP will be responsible for $35.4 million 12

on an ongoing basis. Therefore, Valley District will be responsible for approximately $900,000

per year (2.5% of $35.4 million)

1. When project is fully operational

Financing and Affordability

Several financing strategies are available to fund the $230 million in construction related costs

of the CWF. Long-term public debt financing is one option that can be employed. However,

Staff continues to recommend that the Board consider paying cash for the costs using the

ongoing tax proceeds derived from the dissolution of redevelopment agencies throughout the

Valley District service area and existing project specific reserves earned as a result of selling

surplus supplies after local demands were met. This option would result in $100s of millions in

interest savings over the life of the project. Further, based on the results of the District’s

financial model, this cash financing option would also retain substantial and necessary cash

reserves for repair and replacement of the District’s facilities.

At the previous Workshop, Staff presented a simplified, normalized monthly cost per household

in the Valley District service area of $2.28 assuming cash financing of the project during

construction. This monthly cost includes both the capital and operations and maintenance costs

of the CWF attributable to Valley District. Subsequently, an error was found in the calculation

that resulted in the total per household monthly cost dropping to $1.42. Depending on the

interest rate and term of available debt options at the time of construction, these costs would

increase between 50% and 150% to $2.13 - $3.55 per month per household if the District

chooses to debt finance the costs. This simple analysis does not take into account the time

value of the funds, but is appropriate for this evaluation purpose.

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The calculated per acre-foot cost of water produced by the CWF of $325 did not change due to

the calculation error in the household cost. Based on the cost of other available water supplies,

CWF represents one of the lowest cost water supply alternatives available to Valley District.

This cost analysis does not include the added value provided by CWF in water quality benefits

and the ability to move additional non-SWP water (i.e. Sites Reservoir) through the facility when

capacity exists. These benefits could be as valuable in the long-term as the base water supply

increase and further add to the attractiveness of the CWF for Valley District.

Conclusion

Based on the cost analysis described above, supplemented by the facility and operational

information previously presented, Staff continues to support the California WaterFix as the only

viable project to retain the value of the significant investment in the SWP made by our

taxpayers. The CWF project also assists in the District’s efforts to provide for the sustainable

use of our local groundwater basins. Further, when compared to other water supply options

available to Valley District, the CWF represents a competitive alternative based on its cost.

If the size of the CWF facilities changes from that currently proposed, Staff will assess the cost

implications of the change and bring this item back to the Board for further discussion and

consideration.

Fiscal Impact

The fiscal impact of participation in the California WaterFix is currently estimated to be $230

million in capital costs and $900,000 in ongoing operations and maintenance oncethe facility is

operational. The funds to pay these costs would come from the State Water Project Fund

including established reserves of that fund.

Staff Recommendation

Adopt Resolution 1060 supporting California WaterFix and Valley District’s participation in the

project and stating the Board’s intent to pay the construction costs of the California WaterFix

with District cash financial resources.

Attachments

1. Resolution 1060

2. Advisory Commission on Water Policy Letter 14

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RESOLUTION NO. 1060

RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT SUPPORTING THE CALIFORNIA WATERFIX

WHEREAS, the California WaterFix is a critical component of the California Water Action

Plan, the State of California’s blueprint for a “sustainable and resilient future”; and

WHEREAS, the California WaterFix is a unit of the “project” as defined by the CVP Act

(California Water Code §§ 11100 et seq.) and a project such as California WaterFix has always

been contemplated as part of the project; and

WHEREAS, the California WaterFix is critical to protecting and restoring the San

Bernardino Valley Municipal Water District’s water supply reliability by upgrading aging

infrastructure thereby reducing the SWP’s vulnerability to seismic events in the Sacramento San

Joaquin Delta and climate change impacts; and

WHEREAS, the California Department of Water Resources proposes to construct the

California WaterFix, which consists of three new intakes on the east bank of the Sacramento River

in the northern Sacramento San Joaquin Delta, tunnels connecting these intakes to a new, 30-acre

intermediate forebay, and two 30-mile long tunnels carrying water from this forebay to a new

pumping plant connected to an expanded and modified Clifton Court Forebay; and

WHEREAS, on July 21, 2017, the Department of Water Resources certified the final

environmental analysis for the California WaterFix and signed the Notice of Determination

thereby approving California WaterFix as the proposed project under the California Environmental

Quality Act; and

WHEREAS, the dissolution of redevelopment agencies and the passage of SB 107 in 2015

combined with the District's State Water Project Reserves earned as a result of selling surplus

supplies after local demands were met have resulted in existing and ongoing additional property

tax revenues that make it possible for the District to cash finance the California Water Fix thereby

saving hundreds of millions of dollars in interest charges.

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NOW THEREFORE BE IT RESOLVED that the Board of Directors of San Bernardino

Valley Municipal Water District does hereby find and determine as follows:

1. San Bernardino Valley Municipal Water District supports DWR’s approval of the

California WaterFix.

2. San Bernardino Valley Municipal Water District agrees to participate in California

WaterFix at its equivalent allocation in the State Water Project under the State Water

Contracts (determined by reference to Table A of such State Water Contracts) of those

Contractors benefitting from the project. This amount equals 2.5% of the State Water

Project Contractor share of the project or 1.3% of the total project costs, based on a

55%/45% allocation between the State Water Project and Central Valley Project.

3. San Bernardino Valley Municipal Water District states its intent to utilize existing and

planned proceeds to cash finance its portion of the California WaterFix to the extent that

those financial resources exist during the construction of the project.

Adopted this 3rd day of October, 2017.

San Bernardino Valley Municipal Water District

By: _______________________________Susan LongvillePresident

ATTEST:

_______________________________ Steve Copelan Secretary

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DATE: October 3, 2017

TO: Board of Directors

FROM: Cindy Saks, Finance ManagerBrent Adair, Project ManagerWen Huang, Manager of Engineering

SUBJECT: Board of Directors’ Park Management & Property Committee Meeting September 13, 2017

The Board of Directors’ Park Management & Property Committee met on Wednesday, September

13, 2017, at the offices of the San Bernardino Valley Municipal Water District. Director Navarro

chaired the meeting and Directors Longville, Copelan, and Hayes participated in the meeting. Jim

Tickemyer of the City of San Bernardino Parks and Recreation Department attended the meeting.

Doug Headrick, Cindy Saks, Brent Adair, and Wen Huang of staff also participated.

The summary notes from the August 9th Park Management & Property Committee were reviewed

with no comment.

The meeting agenda contained the following items for discussion:

A. Update on Park Project

1) Maintenance and Operation:

Staff provided a PowerPoint presentation update on the operation and maintenance of the

Bryce E. Hanes Park. The following is a summary of the presentation:

a) The final invoice for the remaining grant funding of $1 million was submitted to the CA

State Parks Department.

b) A pipeline leak associated with the splash pad was repaired under warranty.

c) Staff completed additional field testing of irrigation booster pump and concluded that

a new system with modifications and upgrades may be needed. Valley District staff is

diligently working to complete the necessary modifications and upgrades. It is

anticipated that the District may need to provide additional funding for the work. While 18

the system is being evaluated for replacement, District House Counsel will be

reviewing the associated contracts to identify potential liable parties.

d) Staff provided quotes for converting the planted areas that were trampled near the

parking lot entrance into compacted decomposed granite (DG) paths and upgrading

the toilet paper dispensers. At the conclusion of the discussion, the Committee

directed staff to proceed with the replacement of the dispensers for $1,260 with an

additional ongoing restocking cost at $380 per month.

e) The Committee members discussed appropriate operational hours for the splash pad.

Staff was then directed to run the feature 9 am to 8 pm from May 1 through October

31 and shut down the system from November 1 to April 30 and post proper signage.

2) Expenditures

Staff reviewed the expenditures paid on behalf of the Joint Powers Authority (JPA) for the

month of August 2017 and answered questions regarding various operations and

maintenance (O&M) expenditures. In the future, staff will work on providing a budget vs

actual comparison for the O&M expenses separate from the park construction costs.

B. Discuss Draft Memorandum of Understanding (MOU) with the City of San Bernardino for the

Bryce E. Hanes Park

Staff reported that District staff met with the City staff to discuss a progressive approach where

the City begins to be involved in the programming services and operation of the Park with a

long-term goal toward to a complete takeover. Mr. Tickemyer stated that the City is not

financially ready to take over the park in the near future but is very interested in providing

necessary assistance for the Park. The Committee members expressed their concerns of the

timing but couldn’t reach consensus on the arrangements in the MOU.

Additionally, a JPA meeting has been scheduled for September 25 and the MOU will be

included as a topic of discussion at the meeting as suggested by the Committee.

C. Update on Sale of Surplus Properties

Staff reported the District received a letter of intent to purchase the lots surrounding the park.

This item will be discussed in closed session at the next regular board meeting. There is no

further update on the surplus properties.

Staff Recommendation:

Receive and file. 19

DATE: October 3, 2017

TO: Board of Directors

FROM: Bob Tincher, Manager of Water Resources

SUBJECT: Summary of the September 14, 2017 Strategic Analysis/Plan CommitteeWorkshop

The Strategic Analysis/Plan Committee held a Workshop on September 14, 2017. President

Longville chaired the meeting and Directors Bulot, Copelan, Hayes and Navarro participated in

the meeting. Doug Headrick and Bob Tincher, from staff, were also in attendance. The

following agenda items were discussed:

A. Summary of August 10, 2017 Meeting. There were no changes to the meeting

summary

B. Consider Study with RAND Corporation. Staff recommended a study with the RAND

Corporation that would generally (1) provide an independent analysis of water demand

in the Valley District service area, (2) analyze the cost-effectiveness of the water

management strategies in the Upper Santa Ana River Watershed Integrated Regional

Water Management Plan against new water supply scenarios and (3) help determine the

amount of investment in water management strategies, such as recycled water. The

total cost of the study is $249,997. The Committee asked staff to place this item on an

upcoming Board of Directors meeting for consideration.

Staff Recommendation:

Receive and file

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DATE: October 3, 2017

TO: Board of Directors

FROM: Bob Tincher, Manager of Water Resources

SUBJECT: Summary of the September 14, 2017 Advisory Commission Meeting

The Advisory Commission on Water Policy held a meeting on September 14, 2017. The

following agenda items were discussed:

A. Approval of the Minutes from June 8, 2017 Meeting. The minutes were approved

B. Presentation on Bear Valley Mutual Water Company Activities

Sam Fuller provided an informational presentation on the history and operations of the

Bear Valley Mutual Water Company.

C. Update on iEfficient Program

Bob Tincher presented the survey results from the FY 2016-17 iEfficient public outreach

campaign and reported that the Valley District Board agreed to again support the

outreach in FY 2017-18. The anticipated focus of the 2017-18 campaign would, again,

generally include:

1. Supporting the statewide theme of “Making Conservation a Way of Life”

2. Educating the public that more water is used outdoors than indoors

3. Informing the public about rebates for water conservation products

4. Continuing to establish iEfficient as the expert in water-related issues (building

the iEfficient “brand”)

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ETA Agency was selected to help the water agencies develop and implement an

advertising plan for the year.

D. Presentation on the California Water Fix. Doug Headrick gave a presentation on the

California Water Fix, its importance to the Valley District service area and the estimated

cost to water consumers. Following his presentation, the Advisory Commission voted to

support the California Water Fix.

E. Update on the Groundwater Sustainability Council. Doug reported that the

Groundwater Sustainability Council Task Force is circulating a draft agreement, for

review by the various water agencies and is finalizing the cost sharing methodology.

F. BTAC Monthly Statement. Bob briefly summarized the data provided on the

statement.

G. Announcements by Commissioners. There were no announcements

H. Future Business. The Chair requested potential agenda items from the

Commissioners.

I. Next Meeting Date. December 14, 2017

J. Adjourn

Staff Recommendation:

Receive and file

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DATE: October 3, 2017

TO: Board of Directors

FROM: Bob Tincher, Water Resources Manager

SUBJECT: Meeting Summary for Water Use Efficiency Committee WorkshopSeptember 20, 2017

Director Navarro chaired the meeting and Directors Bulot, Copelan, Hayes and Longvilleattended the meeting. Bob Tincher attended from staff. The committee meeting agenda contained the following discussion items and activities:

1. Summary of the August 16, 2017 meeting. There were no changes to the meeting summary

1. Maintenance of the San Bernardino Valley Water Conservation Demonstration Garden. At the September 5, 2017 Board of Directors (Board) meeting, the Board did not approve a proposed Memorandum of Understanding with California State University, San Bernardino (CSUSB) that would have shifted some of the CSUSB ongoing maintenance responsibility for the San Bernardino Valley Water Conservation Demonstration Garden (Garden) to Valley District. Staff is in the process of scheduling a meeting with CSUSB staff to further discuss ongoing maintenance activities at the Garden. CSUSB still has not invoiced Valley District for the Garden renovation project that was completed last year, mostly at Valley District’s expense (total contract value $11,100). The $25,000 included for the Garden in the General Fund budget for fiscal year 2017-18 includes the $11,100 that has not yet been invoiced. Directors Bulot and Longville are going to schedule a meeting with the President of CSUSB to discuss the Garden and the existing MOU.

2. Report from President Longville on the Second Annual Water Data Conference. This item was postponed to the next Committee meeting.

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3. Summary of Budgeted and Approved Costs for Turf Removal/Water Use Efficiency Rebate Programs for FY 17-18. Staff provided a status report on the Valley District rebate programs.

4. Report on Arundo Removal. In 2014, Valley District provided $2,600 to the Inland Empire Resource Conservation District (IERCD) for arundo removal. The arundo removal was originally intended to be part of a cleanup project for local high school students. Later, the arundo removal was separated from the cleanup project for high school students. IERCD identified some arundo in the San Bernardino National Forest off Highway 38 near Mill Creek. The total cost for the removal is expected to exceed the $2,600 donated by Valley District with the balance of the funds coming from IERCD. Staff reported that the arundo has been removed. IERCD will be invited to next month’s Committee meeting to provide more details on the removal.

Staff Recommendation:Receive and file

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DATE: October 3, 2017

TO: Board of Directors

FROM: Mike Esquer, Project Manager

SUBJECT: Baseline Feeder Committee Report – September 21, 2017

The Baseline Feeder Committee met at 3:00 pm on Thursday, September 21, 2017 in the

conference room at the offices of the San Bernardino Valley Municipal Water District. Director

Hayes chaired the meeting. Directors Navarro, Bulot and Copelan participated in the meeting. In

addition, John Schaack of West Valley Water District (WVWD), Tom Crowley of the City of Rialto,

David Terry of Veolia and Melody Henriques-McDonald of San Bernardino Valley Water

Conservation District participated in the discussion.

The meeting agenda contained the following items for discussion:

4.A. Update on Production, Flows, TDS, and any Recent Problems:

Staff reported that the Baseline Feeder (BLF) System has been running as designed. A

summary of the BLF deliveries for the year-to-date (YTD) deliveries for 2017 was provided.

Staff reported the YTD deliveries for WVWD is 2,159 AF and Rialto is 833 AF.

In addition, recent results of total dissolved solids (TDS) for the BLF System were reported.

In general, the average TDS was approximately 313 mg/L for the 9th Street North Well and

280 mg/L for the 9th Street South Well, respectively.

Staff reported the unit cost of water produced by the Baseline Feeder “East End Complex”

was $116.71/Acre-Foot as of June 30, 2017. It was reported that the actual cost was less

than the estimated cost of $125/Acre-Foot.

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Director Hayes reported on possible future water testing requirements for contaminants

that may be required by CalEPA.

4.B. Concerns from City of Rialto and Veolia:

None Reported

4.C. Concerns from West Valley Water District:

WVWD Staff expressed a concern that the Southern California Edison Instantaneous

demand charges and tariffs associated with the 500kW instantaneous power demand

threshold limit based on a single power meter for the site. All parties present discussed

the situation and Director Hayes asked Valley Staff to support WVWD and Rialto’s efforts

to get a second meter installed. Tom stated he would work with City of Rialto’s Edison

account representative to inquire about a second meter for the site.

4.D. Concerns from Riverside Highland Water Company:

None reported.

Staff Recommendation: Receive and file.

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DATE: October 3, 2017

TO: Board of Directors

FROM: Doug Headrick, General ManagerCindy Saks, Finance ManagerBrent Adair, Project Manager

SUBJECT: San Bernardino Regional Water Resources Authority Meeting – September 25, 2017

The San Bernardino Regional Water Resources Authority Commission met on Monday, September

25, 2017, at the offices of the San Bernardino Valley Municipal Water District. President Mayor

Davis chaired the meeting, City of San Bernardino Commissioners Valdivia and Marquez and Valley

District Commissioner Navarro, participated in the meeting.

DISCUSSION AND POSSIBLE ACTION ITEMS

The meeting agenda contained the following items for discussion:

A. Consider Treasurer's Report –

Staff reviewed the expenditures for the period June 2017 through August 2017. After

discussion, the treasurer report was received and filed.

B. Update on the Bryce E. Hanes Park Project –

a) Staff provided a PowerPoint presentation summarizing the progress of the construction and

activities at and following the Grand Opening for the Bryce E. Hanes Park Project since the last

meeting in June 2017. Highlights of the presentation included 1) recently-installed “No

Trespassing have been vandalized; 2) fitness equipment manufacturer replaced damaged

equipment under warranty; 3) high traffic sidewalk areas exhibiting staining are cleaned every

two weeks; 4) removal of graffiti on northern block wall is a recurring task; 5) splash pad spray

nozzles adjusted to decrease overspray into skatepark; 5) watering times for landscaping and

turf have been reduced as it is more established; 6) final invoice for the remaining grant funding

of $1 million was submitted to the CA State Parks Department; 7) pipeline leak associated with 27

the splash pad was repaired under warranty; 8) additional field testing of irrigation booster pump

recently completed and it was concluded that a new system with modifications and upgrades

may be needed; and 9) planted areas that were trampled near the parking lot entrance could be

converted into compacted decomposed granite (DG) paths and the toilet paper dispensers will

be upgraded to a larger size.

Staff Recommendation:

Receive and file.

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DATE: October 3, 2017

TO: Board of Directors

SUBJECT: List of Announcements

A. October 5, 2017 – Park Management and Property Committee Workshop, 10:00 a.m. at the District Office

B. October 9, 2017 – Strategic Analysis/Plan Committee Workshop, 3:00 p.m. at the District Office

C. October 10, 2017 – Board of Directors’ Workshop, 3:00 p.m. at the District Office

D. October 16, 2017 – ASBCSD Dinner, 6:30 p.m., East Valley Water District

E. October 17, 2017 – SAWPA Commission Meeting, 9:30 a.m. at SAWPA

F. October 18, 2017 – Water Use Efficiency Committee Workshop, 1:30 p.m. at the District Office

G. October 19, 2017 – Legislative and Policy Committee Workshop, 1:30 p.m. at the District Office

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2017 SBVMWD Board and Committee Meetings|EventsAll meetings listed are held at the SBVMWD Administrative office;

Meeting dates and times are subject to change or cancellation;check District website calendar at www.sbvmwd.com for the most up-to-date meeting information

January1/3/17 Regular Board Meeting (2:30pm)1/3/17 Financing Corporation Meeting1/4/17 Board of Directors Workshop (3:00pm)1/11/17 Reservoir Cmte (3:00pm)1/12/17 Board of Directors Workshop (3:00pm)1/17/17 Regular Board Meeting (2:30pm)1/23/17 Baseline Feeder Cmte (3:00pm)

February2/1/17 Legislative & Policy Cmte (1:30pm)2/2/17 External Affairs Cmte (9:00am)2/6/17 Basin Technical Advisory Cmte (1:30pm)2/7/17 Regular Board Meeting (2:30pm)2/8/17 Park Mgmt & Property Cmte Workshop (10:00am)2/9/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)2/14/17 Board of Directors Workshop (3:00pm)2/15/17 Water Use Efficiency Cmte Workshop (1:30pm)2/16/17 Baseline Feeder Cmte Workshop (3:00pm)2/21/17 Regular Board Meeting (2:30pm)

March3/1/17 Legislative & Policy Cmte Workshop (1:30pm)3/2/17 External Affairs Cmte Workshop (9:00am)3/7/17 Regular Board Meeting (2:30pm)3/8/17 Park Mgmt & Property Cmte Workshop (10:00am)3/9/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)3/9/17 Advisory Commission on Water Policy (6:30pm)3/14/17 Board of Directors Workshop (3:00pm)3/15/17 Water Use Efficiency Cmte Workshop (1:30pm)3/16/17 Baseline Feeder Cmte Workshop (3:00pm)3/21/17 Regular Board Meeting (2:30pm)

April4/3/17 Basin Technical Advisory Cmte (1:30pm)4/4/17 Regular Board Meeting (2:30pm)4/5/17 Legislative & Policy Cmte Workshop (1:30pm)4/6/17 External Affairs Cmte Workshop (9:00am)4/11/17 Board of Directors Workshop (3:00pm)4/12/17 Park Mgmt & Property Cmte Workshop (10:00am)4/13/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)4/18/17 Regular Board Meeting (2:30pm)4/19/17 SBRWRA Meeting (10:30am)4/19/17 Water Use Efficiency Cmte Workshop (1:30pm)

May5/1/17 Wages, Benefits & Insurance Cmte (8:00am)5/2/17 Regular Board Meeting (2:30pm)5/3/17 Legislative & Policy Cmte Workshop (1:30pm)5/4/17 External Affairs Cmte Workshop (9:00am)5/4/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)5/9/17 Board of Directors Workshop (3:00pm)5/15/17 Park Mgmt & Property Cmte Workshop (10:00am)5/16/17 Regular Board Meeting (2:30pm)5/17/17 Water Use Efficiency Cmte Workshop (1:30pm)5/24/17 Board of Directors Workshop (3:00pm)

June6/1/17 External Affairs Cmte Workshop (9:00am)6/5/17 Basin Technical Advisory Cmte (1:30pm)6/6/17 Regular Board Meeting (2:30pm)6/7/17 Legislative & Policy Cmte Workshop (1:30pm)6/8/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)6/8/17 Advisory Commission on Water Policy (6:30pm)6/12/17 General Fund Budget Workshop (2:00pm)6/13/17 Board of Directors Workshop (3:00pm)6/14/17 Park Mgmt & Property Cmte Workshop (10:00am)6/15/17 Baseline Feeder Cmte Workshop (3:00pm)6/19/17 SBRWRA Meeting (9:30am)6/20/17 Regular Board Meeting (2:30pm)6/21/17 Water Use Efficiency Cmte Workshop (1:30pm)

July7/5/17 Legislative & Policy Cmte Workshop (1:30pm)7/6/17 External Affairs Cmte Workshop (9:00am)7/10/17 Debt Service Fund Budget Workshop (2:30pm)7/11/17 Board of Directors Workshop (3:00pm)7/12/17 Park Mgmt & Property Cmte Workshop (10:00am)7/13/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)7/18/17 Regular Board Meeting (2:30pm)7/19/17 Water Use Efficiency Cmte Workshop (1:30pm)

August8/1/17 Regular Board Meeting (2:30pm)8/2/17 Legislative & Policy Cmte Workshop (1:30pm)8/7/17 Basin Technical Advisory Cmte (1:30pm)8/8/17 Board of Directors Workshop (3:00pm)8/9/17 Park Mgmt & Property Cmte Workshop (10:00am)8/10/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)8/15/17 Regular Board Meeting (2:30pm)8/16/17 Water Use Efficiency Cmte Workshop (1:30pm)

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September9/5/17 Regular Board Meeting (2:30pm)9/6/17 Legislative & Policy Cmte Workshop (1:30pm)9/12/17 Board of Directors Workshop (3:00pm)9/13/17 Park Mgmt & Property Cmte Workshop (10:00am)9/14/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)9/14/17 Advisory Commission on Water Policy (6:30pm)9/19/17 Regular Board Meeting (2:30pm)9/20/17 Water Use Efficiency Cmte Workshop (1:30pm)9/21/17 Baseline Feeder Cmte Workshop (3:00pm)9/25/17 San Bernardino Regional Water Resources

Authority (11:00 a.m.)

October10/2/17 Basin Technical Advisory Cmte (1:30pm)10/3/17 Regular Board Meeting (2:30pm)10/5/17 Park Mgmt & Property Cmte Workshop (10:00am)10/9/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)10/10/17 Board of Directors Workshop (3:00pm)10/17/17 Regular Board Meeting (2:30pm)10/18/17 Water Use Efficiency Cmte Workshop (1:30pm)10/19/17 Legislative & Policy Cmte Workshop (1:30pm)

November11/1/17 Legislative & Policy Cmte Workshop (1:30pm)11/7/17 Regular Board Meeting (2:30pm)11/8/17 Park Mgmt & Property Cmte Workshop (10:00am)11/9/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)11/14/17 Board of Directors Workshop (3:00pm)11/15/17 Water Use Efficiency Cmte Workshop (1:30pm)11/21/17 Regular Board Meeting (2:30pm)

December12/4/17 Basin Technical Advisory Cmte (1:30pm)12/5/17 Regular Board Meeting (2:30pm)12/6/17 Legislative & Policy Cmte Workshop (1:30pm)12/12/17 Board of Directors Workshop (3:00pm)12/13/17 Park Mgmt & Property Cmte Workshop (10:00am)12/14/17 Strategic Analysis/Plan Cmte Workshop (3:00pm)12/19/17 Regular Board Meeting (2:30pm)12/20/17 Water Use Efficiency Cmte Workshop (1:30pm)12/21/17 Baseline Feeder Cmte Workshop (3:00pm)

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