S A W P A SANTA ANA WATERSHED PROJECT AUTHORITY Sterling Avenue, Riverside, California (951)

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1 S A W P A SANTA ANA WATERSHED PROJECT AUTHORITY Sterling Avenue, Riverside, California (951) REGULAR COMMISSION MEETING TUESDAY, JANUARY 15, :30 A.M. AGENDA 1. CALL TO ORDER/PLEDGE OF ALLEGIANCE (Ronald W. Sullivan, Vice Chair) 2. ROLL CALL 3. PUBLIC COMMENTS Members of the public may address the Commission on items within the jurisdiction of the Commission; however, no action may be taken on an item not appearing on the agenda unless the action is otherwise authorized by Government Code (b). 4. WELCOME NEW SAWPA COMMISSIONERS 5. CONSENT CALENDAR All matters listed on the Consent Calendar are considered routine and non-controversial and will be acted upon by the Commission by one motion as listed below. A. APPROVAL OF MEETING MINUTES: DECEMBER 18, Recommendation: Approve as posted. B. TREASURER S REPORT DECEMBER Recommendation: Approve as posted. 6. WORKSHOP DISCUSSION AGENDA A. LEGISLATIVE REPORT Presenter: Michael Boccadoro, President, West Coast Advisors Recommendation: Receive and file. 7. NEW BUSINESS A. ROTATION OF OFFICERS AND COMMISSION APPOINTMENTS (CM#2019.7)...19 Presenter: Rich Haller SAWPA Resolution No. 355 calls for the rotation of officers at a meeting in January of each oddnumbered year. SAWPA Commission Chair Vice Chair Secretary-Treasurer 1

2 SAWPA Commission Regular Meeting Agenda January 15, 2019 Page 2 Other Commission Appointments OCSD/SAWPA Joint Policy Committee LESJWA (one representative) One Water One Watershed (OWOW) Steering Committee Recommendation: (1) Authorize the rotation of officers in accordance with the historical rotation provisions of Resolution No. 355, and appoint Ronald W. Sullivan as Commission Chair, Jasmin A. Hall as Commission Vice Chair, and Bruce Whitaker as Commission Secretary-Treasurer; (2) Adopt Resolution No appointing one Commissioner to the Lake Elsinore and San Jacinto Watersheds Authority (LESJWA) Board of Directors as the SAWPA representative; (3) Appoint two Commissioners to the OCSD/SAWPA Joint Policy Committee; and, (4) Acknowledge the rotation of representatives to the One Water One Watershed (OWOW) Steering Committee and the Vice Chair serving as Convener as set forth in Resolution No B. COMMISSIONERS COMPENSATION (CM#2019.8)...27 Presenter: Rich Haller Recommendation: Regarding Commissioners compensation effective January 2019: (1) Allow the per day of service rate to increase automatically by 5% (from $200 to $210) effective January 2019; or (2) Adopt Resolution No prohibiting the automatic increase of 5% in the per day of service rate effective January 2019 and maintaining the current rate of $200. C. SAWPA BUILDING IMPROVEMENTS (CM#2019.3)...31 Presenter: Carlos Quintero Recommendation: Authorize the use of $148,000 from the Building Reserve Fund to make various improvements to the SAWPA Building. D. SAWPA PROJECT PROPOSALS DWR PROPOSITION 1 IRWM IMPLEMENTATION GRANT PROGRAM (CM#2019.4)...33 Presenter: Rick Whetsel Recommendation: Authorize staff to submit the following Project Proposals for consideration for DWR Prop 1 IRWM Implementation Grant Program funding: Watershed-Wide Water Budget Development E. FYE 2020 AND 2021 BUDGET GOALS AND OBJECTIVES (CM#2019.5)...35 Presenter: Karen Williams Recommendation: Review and discuss the goals and objectives that will be used in preparing the FYE 2020 and 2021 Budget, and receive and file the budget goals and objectives. F. AERIAL IMAGERY PARTNERSHIP STUDY WITH THE DEPARTMENT OF WATER RESOURCES (CM#2019.6)...55 Presenter: Mark Norton Recommendation: Direct staff on whether to develop a draft scope and budget for the Aerial Imagery Partnership Study with the Department of Water Resources and present it to the PA 22 Committee. 2

3 SAWPA Commission Regular Meeting Agenda January 15, 2019 Page 3 8. INFORMATIONAL REPORTS Recommendation: Receive for information. A. CASH TRANSACTIONS REPORT NOVEMBER Presenter: Karen Williams B. INTER-FUND BORROWING NOVEMBER 2018 (CM#2019.1)...73 Presenter: Karen Williams C. PERFORMANCE INDICATORS/FINANCIAL REPORTING NOVEMBER 2018 (CM#2019.2)...79 Presenter: Karen Williams D. GENERAL MANAGER REPORT E. SAWPA GENERAL MANAGERS MEETING NOTES January 8, 2019 F. CHAIR S COMMENTS/REPORT G. COMMISSIONERS COMMENTS H. COMMISSIONERS REQUEST FOR FUTURE AGENDA ITEMS 9. CLOSED SESSION A. PURSUANT TO GOVERNMENT CODE SECTION CONFERENCE WITH LABOR NEGOTIATOR SAWPA Designated Representative: General Manager Richard E. Haller Non-Represented Employees: All SAWPA employees 10. ADJOURNMENT Americans with Disabilities Act: If you require any special disability related accommodations to participate in this meeting, call (951) or kberry@sawpa.org. 48-hour notification prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility for this meeting. Requests should specify the nature of the disability and the type of accommodation requested. Materials related to an item on this agenda submitted to the Commission after distribution of the agenda packet are available for public inspection during normal business hours at the SAWPA office, Sterling Avenue, Riverside, and available at subject to staff s ability to post documents prior to the meeting. Declaration of Posting I, Kelly Berry, Clerk of the Board of the Santa Ana Watershed Project Authority declare that on Wednesday, January 9, 2019, a copy of this agenda has been uploaded to the SAWPA website at and posted at the SAWPA office, Sterling Avenue, Riverside, California. /s/ Kelly Berry, CMC 3

4 SAWPA Commission Regular Meeting Agenda January 15, 2019 Page SAWPA Commission Meetings Events Important Dates First and Third Tuesday of the Month (NOTE: Unless otherwise noticed, all Commission Workshops/Meetings begin at 9:30 a.m., and are held at SAWPA.) January 1/1/19 Commission Workshop [cancelled] 1/15/19 Regular Commission Meeting March 3/5/19 Commission Workshop 3/19/19 Regular Commission Meeting 3/29/19 OWOW Conference 2019, Cal State Fullerton May 5/7/19 Commission Workshop 5/7 5/10/19 ACWA Spring Conference, Monterey 5/21/19 Regular Commission Meeting July 7/2/19 Commission Workshop 7/16/19 Regular Commission Meeting September 9/3/19 Commission Workshop 9/17/19 Regular Commission Meeting November 11/5/19 Commission Workshop 11/19/19 Regular Commission Meeting February 2/5/19 Commission Workshop 2/19/19 Regular Commission Meeting April 4/2/19 Commission Workshop 4/16/19 Regular Commission Meeting June 6/4/19 Commission Workshop 6/18/19 Regular Commission Meeting August 8/6/19 Commission Workshop 8/20/19 Regular Commission Meeting October 10/1/19 Commission Workshop 10/15/19 Regular Commission Meeting December 12/3/19 Commission Workshop 12/17/19 Regular Commission Meeting 12/3 12/6/19 ACWA Fall Conference, San Diego 4

5 SAWPA COMPENSABLE MEETINGS Commissioners and Alternate Commissioners will receive compensation for attending the meetings listed below, pursuant to the Commission Compensation, Expense Reimbursement, and Ethics Training Policy. IMPORTANT NOTE: These meetings are subject to change. Prior to attending any meetings listed below, please confirm meeting details by viewing the website calendar using the following link: MONTH OF: JANUARY DATE TIME MEETING DESCRIPTION LOCATION 1/8/19 9:00 AM Emerging Constituents Program Task Force Mtg SAWPA 1/8/19 1:00 PM Basin Monitoring Program Task Force Mtg SAWPA 1/9/19 9:00 AM MSAR TMDL Task Force Mtg SAWPA 1/9/19 1:00 PM Lake Elsinore/Canyon Lake TMDL Task Force Mtg SAWPA 1/24/19 8:00 AM PA 22 Committee Mtg SAWPA 1/24/19 11:00 AM OWOW Steering Committee Mtg SAWPA MONTH OF: FEBRUARY 2019 DATE TIME MEETING DESCRIPTION 2/5/19 8:30 AM PA 23 Committee Mtg SAWPA 2/19/19 1:30 PM Basin Monitoring Program Task Force Mtg SAWPA 2/20/19 1:30 PM Emerging Constituents Program Task Force Mtg SAWPA LOCATION 2/21/19 4:00 PM LESJWA Board of Directors Mtg Elsinore Valley MWD Chaney Street Lake Elsinore, CA 2/28/19 8:00 AM PA 22 Committee Mtg SAWPA 2/28/19 9:30 AM OWOW Pillar Integration Mtg SAWPA Please Note : We strive to ensure the list of Compensable Meetings set forth above is accurate and up-to-date; the list is compiled based on input from SAWPA staff and Department Managers regarding meeting purpose and content. 1/8/2019 4:05 PM 5

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7 SAWPA COMMISSION REGULAR MEETING MINUTES DECEMBER 18, 2018 COMMISSIONERS PRESENT Ronald W. Sullivan, Vice Chair, Eastern Municipal Water District Jasmin A. Hall, Secretary-Treasurer, Inland Empire Utilities Agency Bruce Whitaker, Orange County Water District Brenda Dennstedt, Western Municipal Water District June D. Hayes, San Bernardino Valley Municipal Water District COMMISSIONERS ABSENT ALTERNATE COMMISSIONERS PRESENT; NON-VOTING STAFF PRESENT None None Rich Haller, Karen Williams, Mark Norton, Dean Unger, David Ruhl, Carlos Quintero, Mike Antos, Kelly Berry The Regular Commission Meeting of the Santa Ana Watershed Project Authority was called to order at 9:32 a.m. by Vice Chair Sullivan at the Santa Ana Watershed Project Authority, Sterling Avenue, Riverside, California. 1. CALL TO ORDER/PLEDGE OF ALLEGIANCE 2. ROLL CALL Roll call was duly noted and recorded by the Clerk of the Board. 3. PUBLIC COMMENTS Kelly Rowe, recently elected Division 7 Director on the OCWD governing board, noted his interest in engaging throughout the watershed and working with SAWPA in the future. 4. CONSENT CALENDAR A. APPROVAL OF MEETING MINUTES: DECEMBER 4, 2018 Recommendation: Approve as posted. B. TREASURER REPORT OCTOBER 2018 Recommendation: Approve as posted. MOVED, approve the Consent Calendar. Result: Adopted (Unanimously) Motion/Second: Dennstedt/Whitaker Ayes: Dennstedt, Hall, Hayes, Sullivan, Whitaker Nays: None Abstentions: None Absent: None 7

8 SAWPA Commission Regular Meeting Minutes December 18, 2018 Page 2 5. NEW BUSINESS A. SETTLEMENT AGREEMENT PROCEEDS (CM# ) Karen Williams provided the PowerPoint presentation contained in the agenda packet (pages 19-24) outlining the three available options for implementation. In November 2018, staff received checks totaling $1,075,000 in settlement of the Reach V Capital Repair Project litigation. During the FYE 2018 and 2019 budget process, staff was directed to bring back to the Commission distribution options regarding any proceeds received as a result of that lawsuit. The options provided by staff are outlined below; CFO Williams recommended Option 3. Option 1: Reduce Reach V Capital Repairs SRF Loan Option 2: Payoff Higher Interest SRF Loans Option 3. Contribute the Pipeline Replacement Reserve Fund. Current balance of the Pipeline Replacement Reserve Fund: $16,500,000. The baseline amount had been $10,000,000, which was recently increased due to higher costs of pipeline replacement but there is no maximum cap on the fund balance. If a maximum cap were to be instituted in the future and the transfer of settlement proceeds exceeded that maximum cap, the settlement proceeds would continue to remain in the fund unless the Commission directs otherwise. MOVED, direct staff to implement Option 3 Contribute to Pipeline Replacement/Repair Reserves the settlement proceeds in the amount of $1,075,000. Result: Adopted (Unanimously) Motion/Second: Hayes/Hall Ayes: Dennstedt, Hall, Hayes, Sullivan, Whitaker Nays: None Abstentions: None Absent: None B. SEWER SYSTEM MANAGEMENT PLAN INTERNAL AUDIT (CM# ) Carlos Quintero provided a PowerPoint presentation on the Inland Empire Brine Line Sewer System Management Plan (SSMP) Audit. Strategic goals include facilitating water supply through groundwater desalting and protecting watershed resources, managing/operating the Brine Line in an environmentally and sustainable way, and providing adequate capacity for existing and projected future customers. The next major update is due in This item was for informational and discussion purposes; no action was taken on Agenda Item No. 5.B. C. EMERGING CONSTITUENTS PROGRAM TASK FORCE STATUS (CM# ) Mark Norton provided the PowerPoint presentation contained in the agenda packet (pages 41-48) about the Emerging Constituents Program Task Force. In late November 2018, the Santa Ana River Dischargers Association along with Orange County Water District staff approached the Regional Board and SAWPA with an interest in possibly restarting a voluntary emerging constituents sampling program under the Emerging Constituents Program Task Force that is administered by SAWPA. Under discussion were new constituents known as Perfluorooctanoic Acid (PFOA) and Perfluorooctanesulfonic Acid (PFOS), manmade fluorinated chemicals that are part of a larger group of emerging chemicals of concern referred to as per- and polyfluoroalkyl substances (PFASs) detected in groundwater wells, wastewater effluent and various other water sources. On July 13, 2018, the State Water Resources Control Board issued a drinking water notification level relating to PFOAs and PFASs. Given this, a meeting with the EC Program Task Force to discuss the potential Santa Ana 8

9 SAWPA Commission Regular Meeting Minutes December 18, 2018 Page 3 Watershed EC sampling program has been scheduled for January 8, 2019, at SAWPA. Norton advised approximately $86,000 in carryover funding is available to fund initial implementation of the monitoring program. Commissioner Hayes noted the importance of educating the public of potential health hazards due to exposure. Liselle DeGrave of DeGrave Communications provided a PowerPoint presentation on public outreach efforts and social media tools utilized to inform the public on the safety of water supply. Commissioner Hall encouraged sharing information with school districts, universities, etc., a taking advantage of partnership opportunities. This item was for informational and discussion purposes; no action was taken on Agenda Item No. 5.C. D. AUTHORIZATION TO DISTRIBUTE REQUEST FOR QUALIFICATIONS (RFQ) (CM# ) Mike Antos provided a PowerPoint presentation outlining distribution of a Request for Qualifications (RFQ) to create a list of on-call firms that can provide oral and written translation services. Thereafter, SAWPA will issue a Request for Proposals for local entities to access the on-call consultants for translation services on activities related to community engagement for water management. These activities are entirely funded by the Disadvantaged Communities Involvement (DCI) Program, which includes a task to provide translation services via an on-call list to assist water agencies and organizations in ensuring the involvement of disadvantaged, economically-distressed, and underrepresented communities. Provisions of the DCI Program will determine which language translation services will be provided within designated regions. MOVED, authorize the release of a Request for Qualifications (RFQ) to create an on-call list of firms that can provide document translation and simultaneous and/or following meeting translation, a grant-funded task of the Disadvantaged Communities Involvement (DCI) Program. Result: Adopted (Unanimously) Motion/Second: Hall/Whitaker Ayes: Dennstedt, Hall, Hayes, Sullivan, Whitaker Nays: None Abstentions: None Absent: None E. AUTHORIZATION TO DISTRIBUTE REQUEST FOR PROPOSALS (RFP) (CM# ) Mike Antos provide a PowerPoint presentation regarding issuance of a Request for Proposals (RFP) for a California IRWM Roundtable of Regions Network Director. SAWPA will serve as the contracting authority for a consultant who will serve the statewide needs of the California IRWM Roundtable of Regions (Roundtable). There are fourteen contributing Roundtable participants pledging $71,600 for the first-year scope. SAWPA s contribution will total $10, $5,000 in cash and $5,000 in administrative work. This will be a single-year contract; however, the proposal suggests it could be extended and will be adjusted as needed. Future reports will be provided to the Commission as part of the OWOW Program updates. MOVED, (1) Authorize the release of a Request for Proposals (RFP) to fill a collaborativelyfunded Network Coordinator consultant for the California IRWM Roundtable of Regions; and, (2) Commit $5,000 previously budgeted for consultant support and previously budgeted staff time valued at approximately $5,000 from within Fund 373 (OWOW) to support the selection, contracting and management of a Roundtable of Regions Network Coordinator. 9

10 Result: Motion/Second: Ayes: Nays: Abstentions: Absent: Adopted (Unanimously) Hall/Dennstedt Dennstedt, Hall, Hayes, Sullivan, Whitaker None None None SAWPA Commission Regular Meeting Minutes December 18, 2018 Page 4 F. CAPACITY TRANSFER AGREEMENT AND AGREEMENT TO DISCHARGE RELATED TO CONNECTING CITY OF BEAUMONT TO THE INLAND EMPIRE BRINE LINE (CM# ) David Ruhl provided a PowerPoint presentation on the Capacity Transfer Agreement and Agreement to Discharge Related to Connecting the City of Beaumont to the Inland Empire Brine Line. The following documents were revised subsequent to the posting of the agenda, and copies were provided to the Commission, staff and members of the public: 1. Capacity Transfer Agreement Transferring Inland Empire Brine Line Capacity from Western Municipal Water District to San Bernardino Valley Municipal Water District (Transfer Agreement); and, 2. Agreement Approving City of Beaumont to Discharge to the Inland Empire Brine Line (Discharge Agreement). Beaumont City Manager Todd Parton and Assistant City Manager Christine Day were in the audience and available to answer any questions. While the City of Beaumont (Beaumont) is outside the Brine Line Service area, it is within the Santa Ana River watershed. Beaumont is seeking to upgrade their existing wastewater treatment plant to comply with the Regional Water Quality Control Board order and basin plan objectives. Upgrades must be in place by March 2020 and include reverse osmosis treatment of the tertiary treated wastewater plan effluent. To operate its treatment plant as planned, Beaumont needs to purchase Brine Line pipeline capacity and treatment and disposal capacity. Beaumont has been negotiating a purchase of capacity from former discharger Dairy Farmers of America (DFA). DFA s capacity is in WMWD s service area; the discharge connection is in SBVMWD s service area, necessitating the Transfer Agreement. The Discharge Agreement sets forth discharge requirements and conditions, such a hydraulic improvements necessary to accommodate transfer of flow, permitting, submittal of design documents, SAWPA s recovery of pretreatment program (PTP) costs, etc. Additionally, SAWPA will modify five (5) maintenance access structures in Reach 4D in order to withstand slight pressurization without allowing overflows; Beaumont will fully reimburse SAWPA its costs. Beaumont City Manager Parton advised this will meet Beaumont s needs for full buildout; Beaumont is currently at half its full buildout. MOVED, approve and authorize the General Manager to execute subject to minor, non-substantive changes contingent on concurrence by legal counsel: (1) a capacity transfer agreement to transfer pipeline capacity rights and treatment and disposal capacity rights in the Inland Empire Brine Line for 0.55 mgd at 200/mg/l BOD and 200 mg/l TSS from Western Municipal Water District to San Bernardino Valley Municipal Water District; and, (2) an agreement to discharge with the City of Beaumont with stated conditions. Result: Adopted (Unanimously) Motion/Second: Hayes/Dennstedt Ayes: Dennstedt, Hall, Hayes, Sullivan, Whitaker Nays: None Abstentions: None Absent: None 10

11 SAWPA Commission Regular Meeting Minutes December 18, 2018 Page 5 G. INLAND EMPIRE BRINE LINE LEASE CAPACITY POOL AGREEMENT AND UPDATED RATE RESOLUTIONS (CM# ) David Ruhl provided a PowerPoint presentation on the Inland Empire Brine Line Lease Capacity Pool Agreement and Updated Rate Resolutions. Resolution No will establish rates and charges for dischargers to the Inland Empire Brine Line; Resolution will establish the purchase price for treatment and disposal rights to the Inland Empire Brine Line. Marketing efforts have determined that potential customers would experience a significant financial challenge under SAWPA s current policy requiring the purchase of pipeline and treatment and disposal capacity for any discharge permit. A Lease Capacity Pool Agreement (Capacity Agreement) would allow member agencies with available capacity to commit to making available a specific amount of pipeline capacity and treatment and disposal capacity for lease for a minimum five-year period. The pooled capacity would be marketed and made available to new dischargers or existing dischargers needing additional capacity. This would allow an option for industrial customers to lease rather than purchase pipeline capacity and treatment and disposal rights, which will be easier for them to obtain and less of a financial challenge to smaller customers. Commissioner Hall noted that IEUA staff has reviewed the proposed Capacity Agreement, but voiced concern the Commission would be approving an agreement impacting the member agencies which had not first been considered by the member agency governing boards. General Manager Haller acknowledged the concern, noting staff was trying to expedite the process; seeking approval by member agency governing boards would not have a significant impact on the timeline. The Commission and staff concurred consideration of the Capacity Agreement would be subject to approval by the member agency governing boards, and staff s recommendation was updated accordingly. MOVED, (1) Adopt Resolution No Establishing the Rates and Discharges to the Inland Empire Brine Line; (2) Adopt Resolution No Establishing the Purchase Price for Treatment and Disposal Rights in the Inland Empire Brine Line; and, (3) Subject to approval by member agency governing boards, approve and authorize the General Manager to execute an agreement for the creation of a lease capacity pool for the Inland Empire Brine Line, subject to minor, non-substantive changes contingent on concurrence by legal counsel. Result: Adopted (Unanimously) Motion/Second: Hall/Dennstedt Ayes: Dennstedt, Hall, Hayes, Sullivan, Whitaker Nays: None Abstentions: None Absent: None 6. INFORMATIONAL REPORTS The following oral/written reports/updates were received and filed. A. CASH TRANSACTIONS REPORT OCTOBER 2018 B. INTER-FUND BORROWING OCTOBER 2018 (CM# ) Commissioner Hayes requested information relating to inter-fund transfers; CFO Karen Williams noted direction as been provided to staff by way of an adopted Resolution. The Resolution will be included with materials provided for future Commission items. C. PERFORMANCE INDICATORS/FINANCIAL REPORTING OCTOBER 2018 (CM# ) 11

12 SAWPA Commission Regular Meeting Minutes December 18, 2018 Page 6 D. BUDGET VS ACTUAL VARIANCE REPORT FYE 2019 FIRST QUARTER ENDING SEPTEMBER 30, 2018 (CM# E. FINANCIAL REPORT FOR THE FOURTH QUARTER ENDING SEPTEMBER 30, 2018 Inland Empire Brine Line SAWPA F. FIRST QUARTER FYE 2019 EXPENSE REPORTS General Manager Staff G. GENERAL MANAGER REPORT General Manager Haller reviewed the General Manager report. Commissioner Sullivan requested the Commission receive the list of potential speakers for the upcoming OWOW Conference; Commissioner Sullivan suggested a potential speaker from the University of Arizona and directed staff regarding follow up. H. STATE LEGISLATIVE REPORT I. CHAIR S COMMENTS/REPORT There were no further Chair comments/reports. J. COMMISSIONERS COMMENTS There were no Commissioners comments. K. COMMISSIONERS REQUEST FOR FUTURE AGENDA ITEMS There were no further requests for future agenda items. 7. CLOSED SESSION There were no Closed Session items. 8. ADJOURNMENT There being no further business for review, Vice Chair Sullivan adjourned the meeting at 10:54 a.m. Approved at a Regular Meeting of the Santa Ana Watershed Project Authority Commission on Tuesday, January 15, Ronald W. Sullivan, Chair Attest: Kelly Berry, CMC Clerk of the Board 12

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14 Santa Ana Watershed Project Authority INVESTMENT PORTFOLIO - MARKED TO MARKET - UNREALIZED GAINS & LOSSES December 31, 2018 SAWPA primarily maintains a "Buy and Hold" investment philosophy, with all investments held by the Citizens Business Bank via a third-party safekeeping contract. Investment Security Purchase Maturity Call Date Yield To Investment Market Value Unrealized Coupon Interest Type Type CUSIP Dealer Date Date (if appl) Par Value Maturity Cost Current Month Gain / (Loss) Rate Earned Agency FHLMC 3137EACA5 WMS No Call $ 500, % $ 546, $ 501, $ (45,098) 3.750% $ Agency FHLMC 3137EAEC9 WMS No Call $ 1,000, % $ 990, $ 963, $ (26,730) 1.125% $ 1, Agency FHLMC 3137EADB2 WMS No Call $ 500, % $ 512, $ 496, $ (15,859) 2.375% $ 1, Agency FHLB EE5 WMS No Call $ 500, % $ 504, $ 497, $ (6,153) 1.625% $ Agency FHLB HU8 WMS No Call $ 1,000, % $ 1,026, $ 987, $ (38,356) 1.750% $ Agency FHLB Q69 WMS No Call $ 1,000, % $ 998, $ 981, $ (17,547) 2.125% $ 1, Agency FNMA 3135GOZA4 WMS No Call $ 500, % $ 501, $ 499, $ (2,350) 1.875% $ Agency FNMA 3135G0H55 WMS No Call $ 1,000, % $ 1,002, $ 986, $ (15,615) 1.875% $ 1, Agency FNMA 3135G0F73 WMS No Call $ 1,000, % $ 1,015, $ 980, $ (34,600) 1.500% $ Agency USTN WC WMS No Call $ 1,000, % $ 1,005, $ 986, $ (18,985) 1.750% $ 1, Agency USTN G61 WMS No Call $ 1,000, % $ 1,001, $ 989, $ (11,406) 1.500% $ 1, Agency USTN L32 WMS No Call $ 500, % $ 507, $ 490, $ (16,504) 1.375% $ Agency USTN L65 WMS No Call $ 500, % $ 506, $ 490, $ (16,816) 1.375% $ Agency USTN L99 WMS No Call $ 500, % $ 506, $ 489, $ (17,070) 1.375% $ Agency USTN S76 WMS No Call $ 1,000, % $ 969, $ 966, $ (2,852) 1.125% $ 1, CORP Apple Inc AK6 WMS No Call $ 500, % $ 479, $ 483, $ 3, % $ 1, CORP Toyota Motor Corp Credit 89236TFNO WMS No Call $ 500, % $ 497, $ 499, $ 1, % $ 1, CD Ally Bank 02006L2F9 WMS No Call $ 248, % $ 248, $ 248, $ % $ CD American Express 02587DP85 WMS No Call $ 248, % $ 248, $ 248, $ % $ CD American Express BK FSB AN WMS No Call $ 248, % $ 248, $ 248, $ % $ CD Wells Fargo Bank NA W6 WMS No Call $ % $ - $ - $ % $ CD Goldman Sachs Bank USA 38148PUV7 WMS No Call $ 248, % $ 248, $ 248, $ % $ Total Actively Invested Funds $ 13,492, $ 13,563, $ 13,283, $ (280,543) 1.832% $ 20, Total Local Agency Investment Fund $ 40,720, % $ 79, Total Invested Cash $ 13,492, $ 54,284, % $ 99, Key to Security Type: Key to Dealers: FHLB = Federal Home Loan Bank FCS = FinaCorp Securities FHLMC = Federal Home Loan Mortgage Corporation MBS = Multi-Bank Securities FNMA = Federal National Mortgage Association MS = Mutual Securities USTN = US Treasury Note RCB = RBC Dain Rauscher CORP = Corporate Note SA = Securities America CD = Certificate of Deposit TVI = Time Value Investments GDB = Goldman Sachs Bank WMS = Wedbush Morgan Securities AEC = American Express Centurion 14

15 Dec-2018 Interest Rate Analysis 3.0% 2.0% 1.0% 0.0% Securities LAIF Avg Rate of Return 15

16 Dec-2018 Investments $54,284,298 LAIF, $40,720,307, 75% Securities, $13,563,991, 25% 16

17 LAIF, $79,337, 80% Interest $99,361 Dec-2018 Securities, $20,025, 20% 17

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19 COMMISSION MEMORANDUM NO DATE: January 15, 2019 TO: SUBJECT: PREPARED BY: SAWPA Commission Rotation of Officers and Commission Appointments Rich Haller, General Manager RECOMMENDATION It is recommended that the Commission: (1) Authorize the rotation of officers in accordance with the historical rotation provisions of Resolution No. 355, and appoint Ronald W. Sullivan as Commission Chair, Jasmin A. Hall as Commission Vice Chair, and Bruce Whitaker as Commission Secretary-Treasurer; (2) Adopt Resolution No appointing one Commissioner to the Lake Elsinore and San Jacinto Watersheds Authority (LESJWA) Board of Directors as the SAWPA representative; (3) Appoint two Commissioners to the OCSD/SAWPA Joint Policy Committee; and, (4) Acknowledge the rotation of representatives to the One Water One Watershed (OWOW) Steering Committee and the Vice Chair serving as Convener as set forth in Resolution No DISCUSSION Rotation of Officers: SAWPA Resolution No. 355 calls for the rotation of officers in January of each odd-numbered year, stating that it is the non-binding intention of the Commission to rotate the positions of Chair, Vice Chair and Secretary-Treasurer among the member agencies. The historical rotation of officers among the member agencies is as follows: Historical Rotation of SAWPA Officers Year Chair Vice Chair Secretary-Treasurer 1998 IEUA OCWD WMWD 2001 OCWD WMWD SBVMWD 2003 WMWD SMVMWD EMWD 2005 SBVMWD EMWD IEUA 2007 EMWD IEUA OCWD 2009 IEUA OCWD WMWD 2013 OCWD WMWD SBVMWD 2015 WMWD SBVMWD EMWD 2017 SBVMWD EMWD IEUA 2019 EMWD IEUA OCWD In keeping with the historical rotation, the Chair would be a Commissioner from the Eastern Municipal Water District, the Vice Chair would be a Commissioner from the Inland Empire Utilities Agency, and the Secretary-Treasurer would be a Commissioner from the Orange County Water District. Election of officers may be conducted by a single blanket motion for all three positions. Other Commission Appointments: Lake Elsinore and San Jacinto Watersheds Authority (LESJWA) The Commission is required by the Joint Exercise of Powers Agreement creating the Lake Elsinore and San Jacinto Watersheds Authority ( LESJWA ) to appoint one SAWPA Commissioner to LESJWA s 19

20 CM# January 15, 2019 Page 2 Board of Directors to represent SAWPA for a two-year term. The current representative is Brenda Dennstedt, Western Municipal Water District; she has served for two two-year terms. OCSD/SAWPA Policy Committee The OCSD/SAWPA Policy Committee meets as necessary with designated OCSD board members to consider present and future policy matters. Commissioner Sullivan and Commissioner Hall are the two SAWPA representatives currently serving on this committee. One Water One Watershed (OWOW) Steering Committee The OWOW Steering Committee (OWOW Committee) membership is comprised of eleven (11) individuals from three counties (Riverside, San Bernardino and Orange); two members are SAWPA Commission representatives selected by the SAWPA Commission. On February 6, 2018, the Commission adopted Resolution No appointing to the OWOW Steering Committee the Commissioner from the member agencies whose board member has been appointed as Vice Chair and Secretary-Treasurer, with the Vice Chair also serving as OWOW Committee Convener. Members serve for a term of four (4) years. Should either/both the Vice Chair and/or the Secretary- Treasurer be unavailable to serve for all or a portion of said four-year term, the Commission shall appoint another SAWPA Commissioner in accordance with the provisions of Resolution No RESOURCE IMPACTS None. Attachment: 1. Resolution No Resolution No Resolution No

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25 RESOLUTION NO A RESOLUTION OF THE COMMISSION OF THE SANTA ANA WATERSHED PROJECT AUTHORITY APPOINTING THE SAWPA REPRESENTATIVE TO THE LAKE ELSINORE AND SAN JACINTO WATERSHEDS AUTHORITY WHEREAS, the Commission of the Santa Ana Watershed Project Authority ( SAWPA ) is required by the Joint Exercise of Powers Agreement creating the Lake Elsinore and San Jacinto Watersheds Authority ( LESJWA ) to appoint one Director to LESJWA s Board of Directors to represent SAWPA. NOW, THEREFORE, BE IT RESOLVED that the Commission of the Santa Ana Watershed Project Authority hereby confirms the following appointment of: to serve as the SAWPA Representative to LESJWA s Board of Directors. ADOPTED this 15 th day of January, SANTA ANA WATERSHED PROJECT AUTHORITY By:, Chair Attest: Kelly Berry, CMC Clerk of the Board 25

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27 COMMISSION MEMORANDUM NO DATE: January 15, 2019 TO: SUBJECT: PREPARED BY: SAWPA Commission Commissioner Compensation Rich Haller, General Manager RECOMMENDATION Regarding Commissioner compensation effective January 2019: (1) Allow the per day of service rate to increase automatically by 5% (from $200 to $210) effective January 2019; or, (2) Adopt Resolution No prohibiting the automatic increase of 5% in the per day of service rate effective January 2019 and maintaining the current rate of $200. DISCUSSION On March 7, 2017, the Commission adopted Ordinance No setting the per day of service compensation which may be received by the Commissioners and Alternates, not to exceed a total of six (6) days of service in any calendar month. A copy of Ordinance No is attached for convenient reference. The current per day of service compensation amount is $200. In accordance with Ordinance No , the compensation amount will automatically increase to $210 beginning in January Alternatively, the Commission may elect not to receive an increase by adopting the attached Resolution No Staff has provided both options and seeks direction regarding the rate increase effective January RESOURCE IMPACTS Funding has been allotted in the FYE 2018 budget. Attachments: 1. Ordinance No Resolution No

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29 RESOLUTION NO A RESOLUTION OF THE COMMISSION OF THE SANTA ANA WATERSHED PROJECT AUTHORITY PROHIBITING THE INCREASE IN THE AMOUNT OF PER DAY OF SERVICE RATE PAID TO COMMISSIONERS WHEREAS, the Commission of the Santa Ana Watershed Project Authority ( SAWPA ) adopted and enacted Ordinance No authorizing the increase in the amount of compensation paid to Commissioners and Alternate Commissioners; WHEREAS, the compensation which may be received by Commissioners and Alternate Commissioners was set at $200 per day of service; WHEREAS, each calendar year following the adoption of Ordinance No , the compensation which may be received by Commissioners and Alternate Commissioners shall automatically increase by 5% ($10) per calendar year, unless the Commission by resolution elects not to receive such an increase. WHEREAS, the Commission desires to prohibit the automatic increase of 5% effective January 2019 and to maintain the current per day of service rate of $200. NOW, THEREFORE, BE IT RESOLVED that the Commission of the Santa Ana Watershed Project Authority hereby resolves as follows: 1. The per day of service rate shall be maintained at $200 from January 2019 through December 31, 2019; and, 2. This action will not affect the automatic increase effective January ADOPTED this 15 th day of January, SANTA ANA WATERSHED PROJECT AUTHORITY By:, Chair Attest: Kelly Berry, CMC Clerk of the Board 29

30 Page Intentionally Blank 30

31 COMMISSION MEMORANDUM NO DATE: January 15, 2019 TO: SUBJECT: PREPARED BY: SAWPA Commission SAWPA Building Improvements Carlos Quintero, Operations Manager RECOMMENDATION That the Commission authorize the use of $148,000 from the Building Reserve Fund to make various improvements to the SAWPA Building. DISCUSSION The SAWPA building was constructed in Due to normal wear and tear, several improvements are required: Carpet The existing carpet was installed in The current carpet is worn out and starting to ripple at various locations, creating tripping hazards. Staff is recommending replacing with new carpet at all common use areas (approximately 4,300 ft 2 not including offices) and replacing the base board. The estimated cost for the replacement, including labor and materials, is estimated at $20,000. Restrooms The downstairs restrooms have water damaged countertops, old plumbing fixtures, and the original wallpaper. Staff is recommending replacing the wallpaper, floor tile, countertops, plumbing fixtures, and adding an extra urinal in the men s restroom and converting the existing shower to a toilet stall in the downstairs restrooms. Also, high powered air hand dryers are proposed for all building restrooms and replacing countertops and plumbing fixtures in both upstairs restrooms. The estimated cost for these activities, including labor and materials, is estimated at $42,500. Board Room Table Restoration The Board Room table requires resurfacing due to normal wear and tear. The preferred option, where a vendor restores the table in the Board room, is estimated at $3,800. Door handles Some of the door handles have been failing due to normal use. Most of the door handles have been in place since the building was constructed. The cost to replace 27 door handles and resetting the keys for a master lock is $4,100. Building windows The seal on the building windows has suffered weather damage which results in occasional leaks during rain events. Staff is recommending removing all the worn out seal around each one of the 209 windows and replacing it with new material. The cost for this activity is $8,

32 CM# January 15, 2019 Page 2 Board Room Projector Screen and Display The currently used project and screen in the Board Room lack adequate resolution and brightness. Staff is proposing to replace the projection screen with a larger monitor and project directly from a computer rather than using the overhead projector. Additionally, SAWPA would like to replace the existing wall display with an interactive digital display to showcase activities performed at SAWPA as well as add an electrical outlet adjacent to the Board Room table to reduce tripping hazards. The existing Board Room smaller tables and cabinets would be replaced with furniture better suited for current uses. The estimated cost is $29,000 ($14,000 for digital screen, $5,000 for digital display, $5,000 for electrical outlet, and $5,000 for furniture replacement). OWOW Room Improvements The OWOW Room would benefit from having an electrical outlet adjacent to the table to reduce tripping hazards due to wires crossing travel paths. The estimated cost is $5,000. Parking lot improvements Staff is recommending adding 3 parking stalls to accommodate vehicles during large events. Additional improvements include relocating the handicap stalls to the north side of the building (adjacent to the electric vehicle charging stations) and creation of a path to the main entrance through the existing landscaped area. These improvements would be performed using a combination of a contractor (asphalt work) and SAWPA staff (path from handicap parking spots to main entrance). The estimated cost is $30,000. Emergency generators Staff is recommending purchasing four portable generators to use during emergencies to power equipment in the server room and a second connection in the board room to allow skeleton staff to use computers/printers. A quick connection would be established in the server room and in the Board Room. The estimated cost of the four generators is $5,000. CRITICAL SUCCESS FACTORS N/A RESOURCE IMPACTS Funds are available under Building Reserve Fund. Attachments: 1. None 32

33 COMMISSION MEMORANDUM NO DATE: January 15, 2019 TO: SUBJECT: PREPARED BY: SAWPA Commission SAWPA Project Proposals - DWR Prop 1 IRWM Implementation Grant Program Rick Whetsel, Senior Watershed Manager RECOMMENDATION It is recommended that the Commission authorize staff to submit the following Project Proposals for consideration for DWR Prop 1 IRWM Implementation Grant Program funding: DISCUSSION Watershed-Wide Water Budget Development Enhancements and updates to the Customer Parcel Level Outdoor Water Budget Program SAWPA staff working in conjunction with the PA 22 Conservation Coordinators Workgroup, recommend enhancements and updates to the Customer Parcel Level Outdoor Water Budget Program to address the State s guidelines for water conservation. This project will entail the following: 1. Acquiring 3 inch per pixel resolution aerial imagery or the Year 2019 CA Dept of Water Resources 1-foot satellite imagery for the urbanized Santa Ana River Watershed, as well as areas within southern Orange County and the areas outside the watershed but within Eastern and Western Municipal Water District s service areas. The total flight area would be approximately 2,600 square miles and cover the service areas of all the SAWPA member agencies, MWDOC, Rancho California Water District and the water districts in the Big Bear Lake area. This imagery would update the 2015 imagery collected under the Prop 84 Drought Round. (Assuming the 3-inch imagery - $200,000 acquisition) 2. Analyze the data to create new and updated water budgets at the parcel level, as well as the customer meter level where possible this task would include expanding the land cover classifications to include all irrigable landscape and to broaden the range of evapotranspiration factors used in the development of budgets. ($368,000 analysis, $104,000 consulting support, and $93,600 GIS staff & staff mgt.) 3. Create an in-house web-based tool so retail water agencies can easily view the data, upload their customer water usage information to compare budgets to actual use in a secure private platform, and modify water budgets based on customer input or site visit to the parcel. Currently, SAWPA has contracted with ESRI to create a beta-version of the tool, but to upgrade it would result in additional costs on top of the annual maintenance costs. ($198,400 in-house tool alternative) 4. SAWPA will also explore options to expand the capabilities of the tool through the addition of data layers, such as the North American Industrial Classification System (NAICS) business code data layer. (inclusive to in-house tool estimate) The time frame to complete this project is two years at an estimated total cost of $964,000 A 50% cost share is required and SAWPA is working with the SAWPA member agencies, the Municipal Water 33

34 CM# January 15, 2019 Page 2 District of Orange County and possibly the other IRWM Funding Areas in southern Orange County and Riverside County to provide $482,000 in local match. The project will result in 4,775-acre feet per year in expected water savings as retail water agencies will be encouraged to use the tool and under the water conservation regulations will reduce usage if they are not meeting the State s standard. CRITICAL SUCCESS FACTORS The following OWOW critical success factors are addressed by this action: 1. Administration of the OWOW process and plan in a highly efficient and cost-effective manner. 2. Data and information needed for decision-making is available to all. RESOURCE IMPACTS All staff resources to support this application are included under Fund 373 OWOW. All proposal costs would be split between grant funding and local share funding only if successfully recommended for funding under OWOW Prop 1 IRWM rating and ranking system and by DWR s application review process. Attachments: None 34

35 COMMISSION MEMORANDUM NO DATE: January 15, 2019 TO: SUBJECT: PREPARED BY: SAWPA Commission FYE 2020 and 2021 Goals and Objectives Karen Williams, Chief Financial Officer RECOMMENDATION It is recommended that the Commission review and discuss the goals and objectives that will be used in preparing the FYE 2020 and 2021 Budget, and receive and file the goals and objectives. DISCUSSION The goals and objectives have been developed with the strategic assessment process adopted by the Commission in 2016 in mind, and will be presented for review and discussion at the meeting. As in the past, the FYE 2020 and 2021 will be a two-year budget and will be prepared in accordance with the Government Finance Officers Association s (GFOA) recommended guidelines and practices. Our last four two-year budgets have received the GFOA Distinguished Budget Presentation Award. Staff will submit the FYE 2020 and 2021 Budget for this award program after final adoption. RESOURCE IMPACTS None. Attachments: 1. PowerPoint Presentation 35

36 SAWPA FYE 2020 and 2021 Goals and Objectives 1 Agenda 1 Agency Vision 2 Brine Line Goals and Objectives 3 OWOW Goals and Objectives 4 Roundtables Goals and Objectives 5 Agency Operations Goals and Objectives 2 36

37 The Vision Create a sustainable Santa Ana River Watershed that is drought-proofed, salt balanced and supports economic and environmental vitality in the year 2030 Lead the State in Regional Planning Provide leadership in creating innovative and integrated solutions to the challenges facing the watershed 3 Achieving the Vision Brine Line OWOW Roundtables The three major cornerstones of SAWPA s foundation; Brine Line, OWOW and the Roundtables, are essential to achieving SAWPA s vision. 4 37

38 The Cornerstones Brine Line OWOW Designed as the primary method of salt export for the watershed. Removing salt by means of the Brine Line system allows the Watershed to work toward achieving salt balance a key Watershed goal and indicator of sustainability. Bringing together water agency officials, government leaders, environmentalists, and businesses to work in an open, collaborative and coordinated effort toward finding solutions to the challenges facing the region s water supply. Roundtables A forum that brings together many agencies and organizations to address and solve a multiplicity of problems through integration and innovation. SAWPA serves as the administrator/facilitator in these many efforts. 5 The Cornerstones Brine Line OWOW Roundtables Agency Operations SAWPA 6 38

39 Brine Line Purpose and Objectives Support the achievement of a long-term watershedwide salinity balance through: Water quality maintenance, enhancement, and protection in the Santa Ana River and groundwater basins Water resources management, including imported water recharge Disposal of emergency discharges from local wastewater treatment plants Supporting industries limited by salt in their effluent, including energy production facilities Providing existing and future public agencies and private industry with a cost-effective salinity management option 7 OWOW Purpose and Objectives Fulfill SAWPA s role as a CA IRWM Program Regional Water Management Group and provide for a process of determining IRWM funding that meets statutory requirements Prepare a credible integrated watershed-wide water management plan that is updated regularly, meets regional needs and DWR IRWM plan requirements, and provides safe, clean, reliable and affordable water for the SAR Watershed Facilitate the discovery and development of new watershed solutions Maximize funding opportunities and policy influence by uniting efforts watershed wide 8 39

40 Roundtables Purpose and Objectives Create value by building relationships among regulators, SAWPA members, regulated parties that allow for economies of scale, reduced costs, or increased benefits in addressing water related issues Provide regional capacity and neutral venue for supporting multi-agency forum(s) to address the water resources challenges in the SAR Watershed Assist in the establishment and on-going facilitation of stakeholder processes to address watershedspecific issues. 9 Agency Operations Refine staff capability as regional resources Effective and efficient operations Legislative advocacy Increase digital presence of SAWPA Data acquisition, organization, management Maximize grant opportunities Grant management 10 40

41 Brine Line Goals & Objectives - Operations 11 Marketing update plan, brochure, and implement program Implement capacity lease pool program Develop discharger lease agreement Pretreatment Program Update program documents with comments from OCSD and finalize Conduct audit of SAWPA program Implement program efficiencies Permit templates Collection station MOU Establish City of Beaumont as a contract agency and provide oversight for implementation of Pretreatment Program Increase staff capability to perform roles and responsibilities due to expanded program and promote training and mentoring for succession planning Brine Line Goals & Objectives - Operations 12 Complete and implement new business plan Make adjustments for new dischargers and transfer of California Institution for Women (CIW) flow Continue to maintain/grow partnership with OCSD Joint Operations Committee Continue O&M Programs Line cleaning and inspection Solids control Scale management A/V valves frequent maintenance, containment, alarm Update new financial model to determine Brine Line rates Estimate system value and conduct asset criticality assessment Complete the 5-year update of the Sewer System Management Plan 41

42 Brine Line Goals & Objectives - Operations Safety - update/refine safety plan and training Increase in-house field staff capability/equipment reducing reliance on contractors, increasing efficiency, reducing costs Add remote flow monitoring devices Maintain and enhance Brine Line Operations Center Continue coordination with outside contractors working near the Brine Line to reduce risk of SSO s Evaluate impacts of technology on Brine Line operations Improved RO efficiency Zero liquid discharge Indirect potable reuse 13 Brine Line Goals & Objectives - Capital Projects Reach 4D maintenance access structure modifications Coordinate with Corps on new Alcoa Dike impacts and complete protection of Reach 4B Continue capital repairs based on system wide pipe and access structure inspections Rock removal in SAR near abandoned SARI (Orange County) 14 42

43 OWOW Goals & Objectives Fund 373 OWOW Plan Fund General Basin Planning Fund USBR Partnership Studies Fund 398 Proposition 1 Disadvantaged Communities Involvement Program Fund Proposition 84 - Grant Administration Fund 150 Proposition 1 Grant Administration Fund Proposition 84 - Drought Round Capital Projects PA22 Committee Fund Proposition Round SARCCUP PA23 Committee Fund 505 Proposition 1 Grant Projects SARCCUP = Santa Ana River Conservation and Conjunctive Use Program 15 Fund 373 OWOW Plan Project Manager: Mike Antos Funding Source: Member Agency Contributions and Proposition 1 - IRWM Planning Grant Fulfill SAWPA s role as a state-approved Regional Water Management Group in the Integrated Regional Water Management Program Actively participate with the Roundtable of Regions and administer the Network Coordinator consultant position Provide watershed coordination to support implementation of the OWOW Plan Update 2018 Conduct an effective Call for Projects Seeking Grants for Proposition 1 Round 2 Implementation (2021) 16 43

44 Fund General Basin Planning Project Manager: Mark Norton Funding Source: Member Agency Contributions Conduct planning activities that focus on inter-agency coordination and cooperation, integration within the member agencies and external organizations Coordinate with Regional Board staff (monthly) and attend Regional Board meetings (quarterly) Prepare any new grant applications to support SAWPA mission Santa Ana River Trail Technical Advisory Committee Represent SAWPA and region in addressing salinity issues through participation in So Cal Salinity Coalition (SCSC) Oversee implementation of impact monitoring homeless sites in Upper Santa Ana River Watershed 17 Fund USBR Partnership Studies Project Manager: Mark Norton Funding Source: Member Agency Contributions, USBR Grant funding Coordination and preparation of possible grant funding partnership and regional studies with the US Bureau of Reclamation programs such as WaterSmart and Basin Studies updates Monitor and, if deemed necessary and beneficial, develop and prepare Reclamation grant applications, contract administration Administer any successful grant programs with Reclamation staff Conduct coordination with Reclamation staff on joint programs of merit and benefit to the watershed 18 44

45 Fund 398 Proposition 1 IRWM Disadvantaged Communities Involvement Program 19 Project Manager: Mike Antos Funding Source: Proposition 1 Grant Funding Contract Administration of DWR Proposition 1 - Disadvantaged Community Involvement Program Grant Implement the Disadvantaged Communities Involvement Program Finalize and distribute Community Water Ethnography of the Santa Ana Watershed report Finalize and distribute Community Engagement Best Practices report Complete education and training programs across watershed Identify technical assistance needs and opportunities Pursue a one-year extension of the DWR grant to support effective use of the entire Technical Assistance budget Finalize grant agreement deliverables and close program (2020 or 2021) Funds Proposition 84 Grant Administration Project Manager: David Ruhl Funding Source: Proposition 84 Grant Funding Continue grant administration for Proposition 84 Round 1 Round 2 Drought Round 2015 Round 20 45

46 Fund 150 Proposition 1 Grant Administration Project Manager: David Ruhl Funding Source: Proposition 84 Grant Funding Administer the Proposition 1 Grant Program 21 Fund Proposition 84 - Drought Round Projects Project Manager: Ian Achimore Funding Source: Proposition 84 Grant Funding Administer PA 22 Committee and Advisory Workgroup Complete Proposition 84 Drought Grant Program Complete implementation of the Esri Customer Parcel Water Budget Tool and market to interested agencies Support City of Hemet with their rate study and possible adoption of conservation-based water rate structure Provide final report to PA22 documenting the success of drought program Finalize grant agreement deliverables and close Proposition 84 Drought Grant Program 22 46

47 Fund Proposition 84 - Final Round Projects Project Manager: Ian Achimore Funding Source: Proposition 84 Grant Funding Administer PA23 Committee Provide technical assistance for conservation-based water rates adoption Implement a drought tolerant landscape maintenance and training program Implement SARCCUP Complete SARCCUP water conservation tasks Smartscape Budget based water rates 23 Fund 505 Proposition 1 Capital Projects Project Manager: Ian Achimore Funding Source: Proposition 1 Grant Funding 24 Administer grant program Implement new aerial survey and analysis using Esri Customer Parcel Water Budget Tool and market it to interested water agencies Implement sustainable landscaping in the SAR Watershed as a component of the watershed wide landscape transformation project Implement a study with DWR to help retail water agencies comply with new conservation legislation AB 1668 and SB

48 Roundtables Goals & Objectives Fund 374 Basin Monitoring Program TF Fund 381 SAR Fish Conservation TF Fund MSAR TMDL TF Fund 386 RWQ Monitoring TF Fund 387 Arundo Management & Habitat Restoration Fund 392 Emerging Constituents TF 25 Fund 374 Basin Monitoring Program TF Project Manager: Mark Norton Funding Source: Other Agency and Member Agency Contributions Administer all defined responsibilities and activities under the Regional Board Basin Plan as defined in the Basin Monitoring Program Task Force agreement. Provide support incorporating updated SAR Wasteload Allocation Model Analysis into Basin Plan as Amendment (2020) Prepare SAR Annual Water Quality Update Provide support for the regulatory approval process to adopt BPA revising the Wasteload Allocation Develop and implement succession plan for Risk Sciences (2020) Review EPA s final guidance for developing water quality criteria for conductivity (2021) 26 48

49 Fund 386 Regional Water Quality Monitoring TF Project Manager: Rick Whetsel Funding Source: Other Agency Contributions Administer Regional Water Quality Monitoring Task Force Implement the 2019 and 2020 SAR Bacteria Monitoring Program Monitoring and surveillance requirements of the 2012 adopted Basin Plan Amendment Conduct sampling to support implementation of MSAR Bacteria Indicator TMDL Review and revise the Regional Bacteria Monitoring Plan (2020) Recalculate Antidegradation Target for bacteria to be consistent with State Board s 303(d) Listing Policy (2020) Amend Basin Plan to address the recalculation of Antidegradation Targets for bacteria (2021) Implement succession plan for regulatory compliance expert (Risk Sciences) 27 Fund 381 Santa Ana River Fish Conservation TF Project Manager: Ian Achimore Funding Source: Other Agency and Member Agency Contributions, SEP Funds, Other Grant Funding Administer SAR Fish Conservation Task Force Serve as clearinghouse and coordination body on Santa Ana sucker habitat restoration i.e. Upper SAR Habitat Managment Plan Maintenance of the Habitat and Beneficial Use Enhancement Project Design and construct a second phase of the Habitat and Beneficial Use Enhancement Project Pursue grants or partnership for habitat and beneficial use projects Gather habitat data based on Santa Ana Riverwalk monitoring Support permit compliance for OCWD 28 49

50 Fund Middle Santa Ana River TMDL TF Project Manager: Rick Whetsel Funding Source: Other Agency Contributions Administer MSAR TMDL Task Force Conduct and Annual Watershed-wide TMDL compliance monitoring Prepare 2019 Triennial Progress Report Conduct source evaluation studies and implement projects to support TF Evaluate and quantify dry weather flows of the MSAR and all major tributaries (2020) 29 Fund Middle Santa Ana River TMDL TF Update bacteria mass balance analysis (2020) Revise and update MSAR TMDLs Identify appropriate regulatory strategies to address other 303(d) listed waterbodies (2020) Develop formal criteria to identify and quantify uncontrollable sources of bacteria Support comprehensive bacteria reduction plan (CBRP) implementation 30 50

51 Fund 387 Arundo Mgmt & Habitat Restoration Project Manager: Ian Achimore Funding Source: Mitigation Credit Sales (Proposition 13) Administer Arundo Mitigation Bank Assess arundo removal progress in watershed through coordination with ACOE and SARCCUP Plan and Implement Arundo Removal and Habitat Restoration Projects 31 Fund 392 Emerging Constituents TF Project Manager: Mark Norton Funding Source: Other Agency Contributions, IEUA and EMWD Contributions Administer all defined responsibilities and activities under the Emerging Constituent Program TF agreement including EC data collection, data management, and communication and outreach on the safety of tap water. Implement new Emerging Constituents sampling program with focus on PFOA and PFOS Monitor State Board studies and possible further monitoring requirements for ecosystem impacts from ECs Administer Your So Cal Tap Water and other social media tools 32 51

52 Fund 477 LESJWA JPA Administration Project Manager: Mark Norton (JPA ) Rick Whetsel (TMDL TF) Funding Source: Reimbursement from LESJWA and minimal member agency contributions Administer the LESJWA JPA serve as authority administrator for LESJWA including all defined responsibilities and activities under the LESJWA JPA and Business Plan Bi-monthly meetings Administer the Lake Elsinore & Canyon Lake Nutrient TMDL Task Force Monthly meetings 33 Agency Operations Goals & Objectives Update strategic plan and implement goals and objectives from the plan Improve operation efficiency and effectiveness Continue lobbying efforts Provide administrative and technology support to Engineering and Planning projects Upgrade technology in SAWPA meeting rooms Operate SAWPA hardware, software, and network application needs in an efficient and reliable manner Continue to maximize GIS data investments by providing GIS Web Apps and provide input to local and State initiatives 34 52

53 Agency Operations Goals & Objectives GASB 45 and 68 Compliance Actuarial Valuation (FYE 2021) CalPERS Unfunded Liability Disclosure Submit Budget and CAFR for GFOA Award Program Increase investment earnings through use of asset management firm Annual review and update of Retention and Destruction of Agency Records Policy and accompanying procedures as necessary 35 Agency Operations Goals & Objectives Continue agency-wide transparency commitment and open governance policies applicable to Special District Leadership Foundation (SDLF) transparency certification Continue risk transfer protocol review in accordance with Joint Powers Insurance Authority (JPIA) standards Review and update policies, procedures and handbooks in adherence with recently enacted legislation, as applicable Review and update policies and procedures relating to Conflict of Interest law and FPPC filings, as applicable 36 53

54 Agency Operations Goals & Objectives Update records management policies in accordance with recently enacted legislation Contracts - update contract template; review and revise workflow procedures Policies continuing analysis of current policies to ensure continuity and efficiency; revise as warranted

55 SAWPA COMMISSION MEMORANDUM NO DATE: January 15, 2019 TO: SUBJECT: PREPARED BY: SAWPA Commission Aerial Imagery Partnership Study with the Department of Water Resources Mark Norton, Water Resources & Planning Manager RECOMMENDATION It is recommended that the Commission direct staff on whether to develop a draft scope and budget for the Aerial Imagery Partnership Study with the Department of Water Resources and present it to the PA 22 Committee. DISCUSSION At the December PA 22 Committee meeting, SAWPA staff, at the direction of the PA 22 Committee, discussed preliminary discussions with the Department of Water Resources (DWR) regarding a future opportunity to partner on data and water use efficiency efforts. Through SAWPA s outreach to the agency, DWR recommended a study whereby SAWPA ensures approximately three retailers use the 2015 aerial imagery data via the ESRI Customer Parcel Water Budget Tool and upload their billing data to compare customer budgets to the volume of water used per customer. By involving the retail agency partners, DWR would be interested in understanding: I. How many customers are over budget, II. How many customers are under budget, and III. What s the most effective way to let customers know they are over budget? During the October PA 22 Committee meeting, the PA 22 Committee asked staff to prepare a risks and rewards analysis that assessed the potential outcomes of the study. The following analysis was presented to the PA 22 Committee on December 20, 2018 as follows: The study could result in the following (Risks): A. The State being interested in water agencies collecting new categories of data that are not required under legislation or current regulations. New categories could potentially include HOA irrigated boundary areas, urban-wildland interface boundary areas, individual parkway measurement data and comprehensive local precipitation data. B. The State developing state regulatory standards, or possibly legislation, that are more stringent than what the majority of urban water agencies can realistically achieve. The new water conservation legislation, Senate Bill 606 and Assembly Bill 1668, sets standards for indoor residential use and requires the State Water Board, in coordination with DWR, to adopt efficiency standards for outdoor residential use, water losses, and Commercial, Industrial and Institutional (CII) outdoor landscape areas. 55

56 CM# January 15, 2019 Page 2 C. The State describing the data out-of-context, thus reflecting a poor image of the three retail agencies who may seem unprepared for the new water conservation legislation. The study could result in the following (Rewards): A. A thorough demonstration that urban water agencies have difficulty in matching meter data to landscape data. This could provide regulatory relief for some agencies as it demonstrates that they cannot realistically analyze the outdoor water budget data provided by the State and identify their inefficient water users. B. The need to develop more variance categories giving urban water agencies additional flexibility in meeting the new water conservation legislation s water budget targets. The legislation requires DWR to analyze eight variance categories. DWR and the State Water Board have already identified possible variance categories such as evaporative coolers, populations of horses and other livestock, and significant fluctuations in seasonal populations. C. Our region taking a leadership role related to water use efficiency state policy and aerial imagery. This supports our standing as a leader in this field that the State and other water agencies will look to for advice on developing regulations and programs. D. Helping us refine imagery collection and related water use efficiency tools by understanding retail water agency needs and limitations so future tools can be developed strategically. Staff shared that it is difficult to estimate the outcome of the study, as the retailers have not been selected, but a possible result is that it will demonstrate that a small portion of customers exceed their water budget and that it is difficult to change their water usage habits. It will be informative to understand whether their parcels are well irrigated, what range of lot size they have and whether their water usage patterns correspond with factors such as weather conditions. Staff looked for studies with a similar scope but there is limited research in this field. A related study includes the 2015 Outdoor Water Savings Research Initiative Study conducted by the Alliance for Water Efficiency. It found that reporting of outdoor water savings in this study area varies and there is a lack of geographic and climate variability in the research. Another related study is the OmniEarth/ EagleView final report from February 2018 that evaluated the deployment of the grant funded Technology Based Information System Tool. One major finding of the study was that the higher the percentage of turf a service area had, the more likely the water agency was either highly efficient or inefficient. It also demonstrated that efficiencies in outdoor watering was a strong indicator for the agency s overall efficiency. And a 2011 study from the American Society of Photogrammetry and Remote Sensing Journal, Quantifying Urban Landscape Water Conservation Potential Using High Resolution Remote Sensing and GIS, found that more commercial properties applied water in excess of estimated needs compared to residential ones, and that small percentages of users accounted for most of the excess irrigation. After discussion, the PA 22 Committee felt that whether proceeding with such a study between SAWPA and DWR would be more of a policy decision of the SAWPA Commission recognizing that there could be risks with engagement and recommended that staff approach the SAWPA Commission for feedback. If supported by the SAWPA Commission, SAWPA will proceed with developing a more detailed draft scope and budget for this study and present it to the PA 22 Committee at a future meeting. 56

57 CM# January 15, 2019 Page 3 CRITICAL SUCCESS FACTORS 1. Administration of the OWOW process and plan in a highly efficient and cost-effective manner. 2. Data and information needed for decision-making is available to all. RESOURCE IMPACTS Preliminary discussions with DWR staff indicated that DWR would likely have internal DWR funding to support the study, however, SAWPA staff time to devote to this study has not been budgeted. Developing a draft scope and budget will result in minor staff costs. Attachments: 1. PowerPoint Presentation 57

58 Mark Norton Water Resources & Planning Manager Santa Ana Watershed Project Authority January 15,

59 DWR and New Water Use Efficiency Legislation DWR is the lead for technical assistance related to urban water use targets per new water conservation legislation (AB 1668 and SB 606) PA 22 Committee recommended SAWPA staff connect with DWR Water Use Efficiency Program Manager Peter Brostrom and share Drought Grant tools, SAWPA met with Brostrom twice and he recommended a study SAWPA can manage. 59

60 Bostrom's Recommended Study Scope SAWPA ensures approximately three retailers use the aerial imagery data via the ESRI Customer Parcel Water Budget Tool and upload their billing data to compare customer budgets to the volume of water used per customer. By involving the retail agency partners, DWR would be interested in knowing: How many customers are over budget, How many customers are under budget, and What s the most effective way to let customers know they are over budget? 60

61 DWR s Needs for this Study DWR wants to ensure aerial imagery data can be a tool for retail water agencies, rather than just a mandated water budget. DWR wants to understand a major challenge for water users related to the new legislation - comparing area measurement data (outdoor water budgets) to billing data (customer water use). DWR wants to understand: Are a marginal group of customers in a given service area driving an agency s high water use, and How difficult is it to change the habits of that marginal group? 61

62 PA 22 Committee s October Meeting Request PA 22 memo included risks vs. rewards analysis. SAWPA staff discussed this with member agencies staff and they suggested the following: Focus on just dedicated landscape meters (new legislation requires State to develop standards for this customer class). Less of a need for residential focus: Residential budgets easier to create and gains in efficiency will not result in as much volumetric savings compared to CII PA 22 Committee expressed concerns with CII focus without confirmation that water savings was higher than residential. 62

63 Possible Win-Win for Retail Water Agencies By 11/2023 retailers will need to estimate the size of their meter service areas for dedicated landscape customers so they can calculate their total water use objective (target) for their retail service area. Water Use Objective is sum of: Indoor residential Outdoor residential Outdoor dedicated landscape Estimated efficient water losses Outdoor dedicated landscape meter usage objective = Irrigable area (from imagery) x ( Reference ET x ET Adjustment Factor ) State Standard 63

64 Risks The State being interested in water agencies collecting new categories of data. The State developing state regulatory standards, or possibly legislation, that are more stringent than what the majority of urban water agencies can realistically achieve. The State describing the data out-of-context, thus reflecting a poor image of the three retail agencies. 64

65 Rewards A thorough demonstration that many urban water agencies are have difficulty in matching meter data to landscape data. The need to develop more variance categories giving urban water agencies additional flexibility in meeting the new water conservation legislation s water budget targets. Our region taking a leadership role related to water use efficiency state policy and aerial imagery. Helping us refine imagery collection and related water use efficiency tools. 65

66 Risks vs. Rewards The risks and rewards have different weights depending on perspective of the member agencies. PA 22 Committee felt that due to risks cited, policy direction on whether SAWPA should proceed with study scoping with DWR was needed from SAWPA Commission If supported, SAWPA will meet with Peter Brostrom of DWR on budget and scope development If not supported, SAWPA will inform Peter Brostrom 66

67 Santa Ana Watershed Project Authority Cash Transaction Report Month of November 2018 Below is a summary of cash transactions completed during the month in the Authority's checking account with US Bank. Attached are summaries by major revenue and expense classifications. Cash Receipts and Deposits to Account $ 5,119, Net Investment Transfers (2,969,697.86) Cash Disbursements (1,134,252.02) Net Change for Month $ 1,015, Balance at Beginning of Month 1,517, Balance at End of Month per General Ledger $ 2,533, Collected Balance per Bank Statement $ 2,638, ACCOUNTS PAYABLE RECONCILIATION Accounts Payable 10/31/18 $ 4,684, Invoices Received for November ,551, Invoices Paid by check/wire during November 2018 (see attached register) (895,099.58) Accounts Payable 11/30/18 $ 5,340,

68 CASH RECEIPTS Brine Line Operating Revenues $ 868, Participant Fees 14, LESJWA Admin Reimbursement 22, Reach V Legal Settlement 1,075, Grant Proceeds - Prop , Grant Proceeds - Prop 84 Pass-throughs 288, Grant Proceeds - Prop 1 OWOW 109, SRF Loan Proceeds 2,625, Other 10, Total Receipts and Deposits $ 5,119, INVESTMENT TRANSFERS Transfer of Funds: From (to) LAIF $ (4,000,000.00) From (to) Legal Defense Fund - From (to) LESJWA - From (to) Investments 1,030, Total Investment Transfers $ (2,969,697.86) CASH DISBURSEMENTS By Check: Payroll $ - Operations 895, Total Checks Drawn $ 895, By Cash Transfer: Payroll $ 169, Payroll Taxes 67, Take Care (AFLAC) 2, Total Cash Transfers $ 239, Total Cash Disbursements $ 1,134,

69 Santa Ana Watershed Project Authority Check Detail Nov-18 Category Check # Check Date Type Vendor Check Amount Auto Expenses /1/2018 CHK Riverside Transmission Center $ 1, Auto Expenses /9/2018 CHK County of Riverside $ 1, Auto Expenses /21/2018 CHK County of Riverside $ Auto Expenses Total $ 3, Benefits /9/2018 CHK ACWA/JPIA $ 49, Benefits /9/2018 CHK Cal PERS Long Term Care Program $ Benefits /9/2018 CHK State Compensation Ins Fund $ 1, Benefits /15/2018 CHK AFLAC $ Benefits /29/2018 CHK Cal PERS Long Term Care Program $ Benefits /29/2018 CHK WageWorks $ Benefits /29/2018 CHK Mutual Of Omaha $ 2, Benefits EFT /9/2018 CHK Vantagepoint Transfer Agents $ 2, Benefits EFT /9/2018 CHK Vantagepoint Transfer Agents $ Benefits EFT /21/2018 CHK Vantagepoint Transfer Agents $ 2, Benefits EFT /21/2018 CHK Vantagepoint Transfer Agents $ Benefits P /9/2018 WDL CalPERS Supplemental Income $ 5, Benefits P /9/2018 WDL Public Employees' Retirement $ 19, Benefits P /9/2018 WDL Public Employees' Retirement $ Benefits P /21/2018 WDL Public Employees' Retirement $ 19, Benefits P /21/2018 WDL CalPERS Supplemental Income $ 5, Benefits WDL /6/2018 WDL Takecare $ Benefits WDL /14/2018 WDL Takecare $ 5.00 Benefits WDL /14/2018 WDL Takecare $ Benefits WDL /23/2018 WDL Takecare $ Benefits WDL /27/2018 WDL Takecare $ Benefits WDL /30/2018 WDL Takecare $ Benefits Total $ 113, Building Lease /29/2018 CHK Wilson Property Services, Inc $ 1, Building Lease Total $ 1, Computer Hardware/Software EFT /15/2018 CHK Accent Computer Solutions Inc $ 5, Computer Hardware/Software EFT /15/2018 CHK Imagine Systems Inc $ 11, Computer Hardware/Software EFT /21/2018 CHK Teledyne Isco, Inc. $ 1, Computer Hardware/Software Total $ 18, Consulting /1/2018 CHK Scheevel Engineering $ 4, Consulting /15/2018 CHK The Technology Depot $ Consulting /29/2018 CHK The Technology Depot $ Consulting /29/2018 CHK Scheevel Engineering $ 8, Consulting EFT /1/2018 CHK Accent Computer Solutions Inc $ 4, Consulting EFT /1/2018 CHK Trussell Technologies, Inc. $ 2, Consulting EFT /1/2018 CHK Dudek $ 3, Consulting EFT /1/2018 CHK Woodard & Curran Inc. $ 23, Consulting EFT /1/2018 CHK GeoScience Support Services $ 5, Consulting EFT /9/2018 CHK Integrated Systems Solutions $ Consulting EFT /9/2018 CHK Woodard & Curran Inc. $ 27, Consulting EFT /15/2018 CHK CDM Smith, Inc. $ 10, Consulting EFT /21/2018 CHK West Coast Advisors $ 5, Consulting EFT /21/2018 CHK Blais & Associates $ Consulting EFT /29/2018 CHK Integrated Systems Solutions $ 9, Consulting EFT /29/2018 CHK Accent Computer Solutions Inc $ 9, Consulting EFT /29/2018 CHK Trussell Technologies, Inc. $ 12, Consulting EFT /29/2018 CHK DeGrave Communications $ 5, Consulting EFT /29/2018 CHK GeoScience Support Services $ 3, Consulting EFT /29/2018 CHK Blais & Associates $ 1, Consulting Total $ 142, Credit Cards P /9/2018 WDL US Bank $ 10, Credit Cards Total $ 10, Director Costs EFT /21/2018 CHK Eastern Municipal Water District $ Director Costs EFT /21/2018 CHK Western Municipal Water District $ Director Costs EFT /21/2018 CHK Mark Bulot $ Director Costs EFT /21/2018 CHK Jasmin Hall $ Director Costs EFT /21/2018 CHK Kati Parker $ Director Costs EFT /21/2018 CHK Bruce Whitaker $ Director Costs Total $ 1, Employee Reimbursement EFT /1/2018 CHK Mark Norton $ Page 1 of 3 69

70 Santa Ana Watershed Project Authority Check Detail Nov-18 Category Check # Check Date Type Vendor Check Amount Employee Reimbursement EFT /1/2018 CHK Michael Plasencia $ Employee Reimbursement EFT /1/2018 CHK Kelly Berry $ Employee Reimbursement EFT /9/2018 CHK Alison L Lewis $ Employee Reimbursement EFT /21/2018 CHK Marie Jauregui $ Employee Reimbursement EFT /21/2018 CHK David Ruhl $ 9.60 Employee Reimbursement EFT /21/2018 CHK Karen Williams $ Employee Reimbursement EFT /21/2018 CHK Ian Achimore $ Employee Reimbursement EFT /29/2018 CHK Richard Whetsel $ Employee Reimbursement Total $ 1, Equipment Rented /1/2018 CHK GreatAmerica Financial Services $ 1, Equipment Rented /9/2018 CHK Konica Minolta Business Solutions $ Equipment Rented /29/2018 CHK GreatAmerica Financial Services $ 1, Equipment Rented Total $ 3, Facility Repair & Maintenance /1/2018 CHK Casey Equipment Rentals $ 10, Facility Repair & Maintenance /9/2018 CHK TNT Elevator Inc $ Facility Repair & Maintenance /9/2018 CHK K&H Metals and Supplies $ Facility Repair & Maintenance /9/2018 CHK A.S.A.P. Equipment Rentals $ 2, Facility Repair & Maintenance /15/2018 CHK United Rentals $ 1, Facility Repair & Maintenance /29/2018 CHK Inland Water Works Supply Co $ 1, Facility Repair & Maintenance EFT /9/2018 CHK Green Meadows Landscape $ Facility Repair & Maintenance EFT /21/2018 CHK Western Exterminator Co. $ Facility Repair & Maintenance EFT /29/2018 CHK Riverside Cleaning $ 1, Facility Repair & Maintenance Total $ 17, Lab Costs EFT /1/2018 CHK E. S. Babcock & Sons, Inc. $ 1, Lab Costs EFT /15/2018 CHK E. S. Babcock & Sons, Inc. $ 2, Lab Costs EFT /21/2018 CHK E. S. Babcock & Sons, Inc. $ 2, Lab Costs EFT /29/2018 CHK E. S. Babcock & Sons, Inc. $ 1, Lab Costs Total $ 7, Legal Costs EFT /9/2018 CHK Hunt Ortmann Palffy Nieves Dahl $ 84, Legal Costs Total $ 84, Office Expense /1/2018 CHK Aramark Corporation Refreshments $ Office Expense /9/2018 CHK Staples Business Advantage $ Office Expense /15/2018 CHK Konica Minolta Business Solutions $ Office Expense /21/2018 CHK Aramark Corporation Refreshments $ Office Expense /29/2018 CHK Staples Business Advantage $ Office Expense Total $ 1, Offsite Storage EFT /21/2018 CHK Iron Mountain $ Offsite Storage Total $ Other Commission Expense EFT /29/2018 CHK McGrath Catering $ Other Commission Expense Total $ Other Contract Services EFT /1/2018 CHK Orange County Sanitation District $ 67, Other Contract Services EFT /1/2018 CHK EcoTech Services Inc $ 49, Other Contract Services EFT /1/2018 CHK Local Government Commission $ 4, Other Contract Services EFT /1/2018 CHK Washburn Grove Management Inc $ 2, Other Contract Services EFT /15/2018 CHK Western Municipal Water District $ 1, Other Contract Services EFT /15/2018 CHK Orange County Coastkeeper $ Other Contract Services EFT /21/2018 CHK Western Municipal Water District $ 7, Other Contract Services EFT /29/2018 CHK Sol Media $ 4, Other Contract Services Total $ 138, Other Expense /29/2018 CHK Imagetech $ 1, Other Expense Total $ 1, Payroll WDL /9/2018 WDL Direct Deposit 11/9/2018 $ 80, Payroll WDL /9/2018 WDL PR Tax - Federal $ 26, Payroll WDL /9/2018 WDL PR Tax - State $ 6, Payroll WDL /23/2018 WDL Direct Deposit 11/23/2018 $ 88, Payroll WDL /23/2018 WDL PR Tax - Federal $ 27, Payroll WDL /23/2018 WDL PR Tax - State $ 7, Payroll Total $ 237, Prop /15/2018 CHK City of Hemet $ 6, Prop84 EFT /1/2018 CHK ESRI Inc. $ 4, Prop84 EFT /15/2018 CHK ESRI Inc. $ 4, Page 2 of 3 70

71 Santa Ana Watershed Project Authority Check Detail Nov-18 Category Check # Check Date Type Vendor Check Amount Prop84 EFT /15/2018 CHK City of Chino Hills $ 282, Prop84 EFT /29/2018 CHK ESRI Inc. $ 35, Prop84 Total $ 332, Safety EFT /1/2018 CHK A Cone Zone Inc $ Safety EFT /9/2018 CHK Underground Service Alert $ Safety Total $ Shipping/Postage /21/2018 CHK Federal Express $ Shipping/Postage Total $ Temporary Services /1/2018 CHK AppleOne Employment Services $ Temporary Services /15/2018 CHK AppleOne Employment Services $ 1, Temporary Services /21/2018 CHK AppleOne Employment Services $ 2, Temporary Services /29/2018 CHK AppleOne Employment Services $ 1, Temporary Services Total $ 7, Utilities /1/2018 CHK AT&T $ Utilities /1/2018 CHK Southern California Edison $ Utilities /1/2018 CHK Verizon Wireless $ 1, Utilities /1/2018 CHK AT&T $ 1, Utilities /1/2018 CHK Verizon Wireless $ Utilities /9/2018 CHK Riverside, City of $ 2, Utilities /9/2018 CHK Southern California Edison $ Utilities /9/2018 CHK Burrtec Waste Industries Inc $ Utilities /9/2018 CHK Riverside, City of $ Utilities /29/2018 CHK AT&T $ Utilities /29/2018 CHK Verizon Wireless $ 1, Utilities /29/2018 CHK DIRECTV $ Utilities /29/2018 CHK Verizon Wireless $ Utilities Total $ 8, Grand Total $ 1,134, Accounts Payable Checks $ 833, Wire Transfers $ 62, $ 895, Bank Fees Take Care $ 2, Other Payroll $ 237, Total Disbursements for November 2018 $ 1,134, Page 3 of 3 71

72 Santa Ana Watershed Project Authority Consulting November 2018 Remaining Check # Check Date Task # Task Description Vendor Name Total Contract Check Amount Contract Amount Notes/Comments EFT /1/2018 ACS IT Support Accent Computer Solutions $ 186, $ 4, $ 157, EFT /29/2018 ACS IT Support Accent Computer Solutions $ 186, $ 9, $ 157, EFT /21/2018 BLAIS Grant Writing Support for Transformative Climate Communities Blais & Associates $ 13, $ $ 12, EFT /29/2018 BLAIS Grant Needs Assessment and Grant Monitoring Blais & Associates $ 24, $ 1, $ 22, EFT /15/2018 CDM SAR Bacteria Monitoring Program CDM Smith $ 317, $ 10, $ 306, EFT /29/2018 DEGR Social Media Support DeGrave Communicaitons $ 78, $ 2, $ 68, EFT /29/2018 DEGR Social Media Support DeGrave Communicaitons $ 30, $ 3, $ 20, EFT /1/2018 DUDK Reach V Rehab, Phase I, Tasks 3-4 Dudek $ 134, $ 3, $ 37, EFT /1/2018 GEO SAR WLA Model Update GeoSciences Support Services $ 285, $ 5, $ EFT /29/2018 GEO SAR WLA Model Update GeoSciences Support Services $ 285, $ 3, $ EFT /9/2018 INSOL GP Annual Service & Support Integrated Systems Solutions $ 3, $ $ 2, EFT /29/2018 INSOL GP Upgrade Integrated Systems Solutions $ 18, $ 5, $ 9, EFT /29/2018 INSOL GP Upgrade Integrated Systems Solutions $ 18, $ 3, $ 9, EFT /29/2018 INSOL GP Annual Service & Support Integrated Systems Solutions $ 3, $ $ 2, /1/2018 SCH SA Sucker Protection and Beneficial Use Scheevel Engineering $ 96, $ 4, $ 7, /29/2018 SCH SA Sucker Protection and Beneficial Use Scheevel Engineering $ 96, $ 3, $ 7, /29/2018 SCH SA Sucker Habitat Construction Management Scheevel Engineering $ 12, $ 5, $ 7, /15/2018 TTD Phone System Support The Technology Depot $ 5, $ $ 3, /29/2018 TTD Phone System Support The Technology Depot $ 5, $ $ 3, EFT /1/2018 TRU BL Water Quality Monitoring Analysis & Billing Trussell Technologies Inc $ 49, $ 2, $ - EFT /29/2018 TRU BL Water Quality Monitoring Assessment Trussell Technologies Inc $ 41, $ 9, $ 12, EFT /29/2018 TRU Monthly County Line Solids Analysis Trussell Technologies Inc $ 9, $ 2, $ 6, EFT /21/2018 WCA State Legislative Consulting Services West Coast Advisors $ 345, $ 5, $ 6, EFT /1/2018 RMC SARCCUP Program Mgmt Services Woodard & Curran Inc. $ 224, $ 23, $ 187, EFT /9/2018 W&C D Rehabilitation - Engineering Services Woodard & Curran Inc. $ 226, $ 27, $ 32, $ 142,

73 COMMISSION MEMORANDUM NO DATE: January 15, 2019 TO: SAWPA Commission SUBJECT: Inter-Fund Borrowing November 2018 PREPARED BY: Karen Williams, Chief Financial Officer RECOMMENDATION It is recommended that the Commission receive and file the informational report on short-term, cash-flow inter-fund borrowing. DISCUSSION On December 13, 2005, the Commission approved Resolution No. 452, Inter-Fund and Inter-Project Loan Policy. Staff was directed to bring back an accounting of the loans each month for review when the total exceeded $250,000 in aggregate. The following projects, with negative cash flow, are listed below with the amounts borrowed from SAWPA General Fund Reserves in November The total amount borrowed is over the aggregate $250,000 amount recommended in Resolution No. 452, Inter-Fund and Inter-Project Loan Policy. The Commission has requested that this item be brought back each month as an informational item when the loan amount is over the $250,000 aggregate amount. Fund Fund Name 10/31/18 Loan New 11/30/18 Balance Receipts Charges Balance 130 Proposition 84 Admin $90, ($0.00) $7, $97, Proposition 84 Admin R2 91, (0.00) 8, , Proposition 84 Admin R3 66, (13,856.96) 9, , Proposition 84 Admin R4 145, (36,793.24) 8, , Proposition 1 DACI Grant 115, (0.00) 15, , LESJWA Administration 21, (22,877.02) 15, , Prop 84 - Drought Projects 222, (40,116.24) 56, , Total Funds Borrowed $753, ($113,643.46) $121, $761, General Fund Reserves Balance $3,171, Less Amount Borrowed 761, Balance of General Fund Reserves $2,410, The following table lists each fund that has a negative cash flow, the source of funding for the fund, how often the fund is billed, and the projected rate of payment for the fund. 73

74 CM# January 15, 2019 Page 2 Fund No. 130,135,140, 145 Proposition 84 Admin 398 Proposition 1 DACI Grant NEGATIVE CASH-FLOW FUNDS Source of Funding Billing Frequency Projected Payment Time DWR Prop 84 Grant Monthly/Quarterly Up to 4 months DWR Prop 1 Grant Monthly Up to 4 months 477 LESJWA Admin Reimbursement from LESJWA Monthly 2 to 4 weeks Proposition 84 Drought Projects 504 Proposition 84 SARCCUP Projects DWR Prop 84 Grant Monthly Up to 4 months DWR Prop 84 Grant Monthly/Quarterly Up to 4 month Fund 130 The outstanding balance of the funds due from DWR is the mandatory 10% retention from each invoice billed. Retention funds will not be released until the Proposition 84 Round I contract is completed in Fund 135 This fund is for the administration of Proposition 84 Round II grant funds. These funds will be billed quarterly and 10% will be withheld for retention. Fund 140 This fund is for the administration of Proposition 84 Drought Round grant funds. These funds will be billed monthly and 10% will be withheld for retention. Fund 145 This fund is for the administration of Proposition 84 Round 2015 grant funds. These funds will be billed quarterly and 10% will be withheld for retention. Fund 398 This fund is for the Proposition 1 DACI grant project. These funds will be billed monthly once the contracts with DWR have been signed. Fund 477 Each month LESJWA is billed the cost for administering the JPA. Once the bill is received, LESJWA submits payment within two weeks. Fund 504 This fund is for the implementation of drought related projects and SARCCUP projects which are administered through PA22 and PA23. 74

75 CM# January 15, 2019 Page 3 The following graph shows the total budget, total project costs to date, and the amount remaining on each grant. Fund Fund Name Total Budget Project Costs Through 11/30/18 Remaining Grant Budget 130 Proposition 84 Admin R1 $660,004 ($514,491) $145, Proposition 84 Admin R2 627,405 (438,546) 188, Proposition 84 Admin R3 625,000 (595,451) 29, Proposition 84 Admin R4 3,213,384 (549,409) 2,663, OWOW Planning Grant 250,000 (207,809) 42, Energy Water DAC Grant (WECAN) 2,339,823 (2,207,384) 132, Proposition 1 DACI Grant 1,362,741 (768,940) 593, Prop 84 - Drought Projects 6,962,610 (3,106,766) 3,855, Prop Round (SARCCUP) 1,000,000 (500,789) 499,211 Totals $17,040,967 ($8,989,585) $8,151,382 The following graph shows projected inter-fund loan balances, total unrestricted General Fund Reserves available for loans, and projected cash net of loans through June The projected loan balance is expected to remain over the $250,000 aggregate limit through June 2019 because of Proposition 1 and 84 grants, but can be covered by General Fund Reserves without a major impact on cash flow. 3,500 Projected General Cash / Reserves Fund Balance 3,000 2,500 Thousands 2,000 1,500 1, Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Unrestricted Reserve Funds Interfund Loans $250,000 Projected Cash Net of Loans 75

76 CM# January 15, 2019 Page 4 RESOURCE IMPACTS The funds borrowed from the General Fund Reserves will be paid back with interest when the funding is received. Interfund loans for grants are not charged interest unless the grant contracts specifically states interest is eligible for reimbursement. There is sufficient cash available to cover proposed borrowings and to pay budgeted expenditures for the General Fund. Attachments: 1. Resolution No. 452 Amending the Inter-Fund, Inter-Project and Inter-Agency Loan Policy 76

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79 COMMISSION MEMORANDUM NO DATE: January 15, 2019 TO: SAWPA Commission SUBJECT: Performance Indicators and Financial Reporting November 2018 PREPARED BY: Karen Williams, Chief Financial Officer RECOMMENDATION It is recommended that the Commission receive and file staff s report. DISCUSSION The attached reports have been developed to keep the Commission informed as to SAWPA s business and budget performance. These reports are categorized into the following groups: financial reporting, cash and investments, and performance indicators. They are explained in detail below. As new reports are developed, they will be added for the Commission s review. Financial Reporting Balance Sheet by Fund Type Revenue & Expense by Fund Type Receivables Management Open Task Order Schedule List of SAWPA Funds Debt Service Funding Analysis Debt Service Payment Schedule Lists total assets, liabilities, and equity by fund type for a given period. Lists total revenue and expenses by fund type for a given period. Shows total outstanding accounts receivable by age. Shows SAWPA s total outstanding obligation for open task orders. Shows each SAWPA Fund with the fund description and fund group. Shows total annual income by source used to make debt service payments through debt maturity at FYE Shows total debt service interest and principal payments through debt maturity at FYE Cash and Investments Total Cash and Investments (chart) Cash Balance & Source of Funds Cash & Investments (pie chart) Reserve Account Analysis Twelve Month Security Schedule (chart) Shows the changes in cash and investments balance for the last twelve months. Shows total cash and investments for all SAWPA funds and the types of investments held for each fund. Shows total cash and investments for all SAWPA funds and the percentage of each investment type. Shows changes to each reserve account for the year and projected ending balance for each. Shows the maturity dates for securities held and percentage of securities in each category. 79

80 CM# January 15, 2019 Page 2 Treasurer s Report Shows book and market value for both Treasury strips and securities held by the Agency. Performance Indicators Average Daily Flow by Month Summary of Labor Multipliers General Fund Costs Benefit Summary Labor Hours Budget vs. Actual Shows total flow in the Brine Line System by month compared to total treatment capacity owned. This is an indicator of the available capacity in the line. As we add yearly flows, it will show trends in flow throughout the year. Summarizes the information generated from the following two reports and compares the actual benefit and Indirect Cost Allocation rates to the total budgeted rates. Lists total Fund No. 100 costs to date and the amount of those costs recovered through the Indirect Cost Allocation and member contributions. Lists total employee benefit costs actual to budget and projects them through the end of the year. This report compares how the actual benefit rate compares to the budgeted rate. Shows total budgeted hours for each project and compares them to the actual hours charged to each. RESOURCE IMPACTS Staff expects minimal impacts to SAWPA or its member agencies related to this effort. Attachments: 1. Balance Sheet by Fund Type 10. Reserve Account Analysis 2. Revenue & Expense by Fund Type 11. Twelve-Month Maturity Schedule - Securities 3. Accounts Receivable Aging Report 12. Treasurer s Report 4. Open Task Order Schedule 13. Average Daily Flow by Month 5. List of SAWPA Funds 14. Summary of Labor Multipliers 6. Debt Service Funding Analysis 15. General Fund Costs 7. Debt Service Payment Schedule 16. Benefits 8. Total Cash and Investments (chart) 17. Labor Hours Budgeted vs. Actual 9. Cash Balance & Source of Funds 80

81 Santa Ana Watershed Project Authority Balance Sheet by Fund Type For the Four Months Ending Wednesday, October 31, 2018 General Fund Brine Line Enterprise Capital Projects OWOW Projects Roundtable Projects Fund Totals Assets Current Assets Cash and Investments $4,295, $41,578, $4,440, $972, $2,529, $53,816, Accounts Receivable 45, ,768, ,625, ,564, , ,300, Interest Receivable , , Prepaids and Deposits 23, , , Total Current Assets 4,364, ,426, ,065, ,537, ,825, ,219, Fixed Assets Property, Plant & Equipment less accum depreciation 1,185, ,338, ,523, Work In Process ,161, ,161, Total fixed assets 1,185, ,338, ,161, ,684, Other Assets Wastewater treatment/disposal rights, net of amortization ,183, ,183, Inventory - Mitigation Credits ,910, ,910, Total Other Assets ,183, ,910, ,094, Total Assets $5,549, $129,948, $35,226, $5,537, $4,736, $180,998, Liabilities and Fund Equity Current Liabilities Accounts Payable/Accrued Expenses $709, $917, $190, $3,819, $165, $5,802, Accrued Interest Payable , , , Customer Deposits 10, , , , Noncurrent Liabilities Long-term Debt 4,327, ,831, ,000, ,158, Deferred Revenue ,209, ,209, Total Liabilities 5,047, ,215, ,384, ,819, , ,084, Fund Equity Contributed Capital ,920, ,920, Retained Earnings 1,330, ,458, ,231, , ,576, ,584, Revenue Over/Under Expenditures (827,903.58) 353, (390,184.97) 731, , , Total Fund Equity 502, ,733, ,841, ,717, ,119, ,914, Total Liabilities & Fund Equity $5,549, $129,948, $35,226, $5,537, $4,736, $180,998,

82 Santa Ana Watershed Project Authority Revenue & Expenses by Fund Type For the Four Months Ending Wednesday, October 31, 2018 General Fund Brine Line Enterprise Capital Projects OWOW Projects Roundtable Projects Fund Totals Operating Revenue Discharge Fees $0.00 $3,605, $0.00 $0.00 $0.00 $3,605, Grant Proceeds ,753, ,753, Financing Proceeds , , Total Operating Revenue ,605, ,753, , ,424, Operating Expenses Labor 546, , , , , ,173, Benefits 185, , , , , , Indirect Costs , , , , , Education & Training 3, , Consulting & Professional Services 107, , , , , ,439, Operating Costs , , Repair & Maintenance 14, , , Phone & Utilities 20, , , Equipment & Computers 126, , , Meeting & Travel 6, , , Other Administrative Costs 55, , , , Benefits Applied 120, , Indirect Costs Applied (891,272.73) (891,272.73) Other Expenses 25, , , , Construction , , Total Operating Expenses 321, ,096, , ,264, , ,455, Operating Income (Loss) (321,842.55) 1,509, (390,184.97) (511,116.03) (316,845.18) (30,873.39) Nonoperating Income (Expense) Member Contributions 650, , , ,471, Other Agency Contributions , , ,268, Interest Income 17, , , , , Interest Expense - Debt Service 0.00 (102,544.15) (102,544.15) Other Income (4,720.71) (4,329.45) Use of Reserves (24,709.97) (24,709.97) Total Nonoperating Income (Expense) 644, , ,242, , ,857, Excess Rev over (under) Exp $322, $1,620, ($390,184.97) $731, $542, $2,826,

83 Aging Report Santa Ana Watershed Project Authority Receivables as of November 30, 2018 Customer Name Project Total 0-30 Days Days 61 and Over Beaumont Cherry Valley Water District Basin Monitoring TF 13, , Chino Basin Desalter Authority Brine Line 324, , , Department of Water Resources Prop 84, WECAN 3,728, , , ,555, Eastern Municipal Water District Brine Line 182, , , Inland Empire Utilities Agency Brine Line, Emerging Constituents 101, , , Lake Elsinore & San Jacinto Watersheds Authority LESJWA Administration 11, , Orange County Water District Member Agency Contributions, SA Sucker 61, , Riverside, City of SA Sucker 4, , San Bernardino County RWQ Monitoring TF, MSAR TMDL 227, , San Bernardino Valley Municipal Water District Brine Line 99, , , Western Municipal Water District Brine Line 350, , , Total Accounts Receivable 5,104, , , ,861,

84 Santa Ana Watershed Project Authority Open Task Orders Schedule Nov-18 (Reflects Invoices Received as of 12/13/18) Task Order No. Fund No. Vendor Name Task Description Begin Date End Date Original Change Total Billed Contract SAWPA Comments Project Contracts Contract Orders Contract To Date Balance Manager ACS Accent Computer Solutions IT Support 08/08/ /30/2020 $ 186, $ - $ 186, $ 33, $ 153, Dean Unger BLAIS Blais & Associates Grant Writing Support 10/09/ /30/2018 $ 13, $ - $ 13, $ 7, $ 6, Mike Antos HAMM /240 Hammons Strategies Technicial Writing - SAWPA/BL 07/01/ /30/2019 $ 10, $ - $ 10, $ 2, $ 7, Rich Haller INSOL Integrated Systems Solutions Management of Info Systems & Technology 08/01/ /30/2019 $ 3, $ - $ 3, $ $ 2, Dean Unger NICO Nicolay Consulting Group GASB 45/75 Transisiton Plan 08/22/ /30/2019 $ 7, $ $ 8, $ 5, $ 2, Karen Williams TEAM Teaman, Ramirez, & Smith Auditing Services 06/05/ /30/2021 $ 79, $ - $ 79, $ 22, $ 56, Karen Williams TTD The Technology Depot Phone Support 08/17/ /30/2019 $ 5, $ - $ 5, $ 1, $ 3, Dean Unger WCA West Coast Advisors State Legislative Consulting FY /24/ /31/2018 $ 345, $ - $ 345, $ 345, $ - Rich Haller DOUG Douglas Environmental Brine Line Meter Calibration 07/01/ /30/2020 $ 25, $ 25, $ 5, $ 20, Carlos Quintero On Call WO E S Babcock Brine Line Sample Collection & Analysis 07/01/ /30/2019 $ 86, $ - $ 86, $ 26, $ 59, Carols Quintero HAZ Haz Mat Trans Inc On Call Draining & Emergency Clean Up 07/01/ /30/2020 $ 96, $ - $ 96, $ $ 95, Carlos Quintero On Call HAZ Haz Mat Trans Inc BL Debris Hauling & Disposal services 07/01/ /30/2020 $ 34, $ 34, $ 34, Carlos Quintero On Call HOU Houston Harris PCS Inc Brine Line On Call Inspection Services 07/01/ /30/2020 $ 96, $ - $ 96, $ 96, Carlos Quintero On Call INN Innerline Engineering Inc Brine Line On-Call Line Cleaning 07/01/ /30/2020 $ 151, $ 151, $ 2, $ 148, Carlos Quintero On Call TRU Trussell Technologies BL Monitoring Assesment 01/04/ /30/2018 $ 41, $ - $ 41, $ 28, $ 12, Carlos Quintero TRU Trussell Technologies Monthly County Line Solids Analysis 10/16/ /30/2019 $ 9, $ - $ 9, $ 3, $ 5, Carlos Quintero TRU Trussell Technologies 2019 BL Annual Review 10/15/ /31/2019 $ 49, $ - $ 53, $ 3, $ 49, Carlos Quintero WO WMWD Sample Collection & Analysis 07/01/ /30/2019 $ 80, $ - $ 80, , $ 57, David Ruhl WO WMWD Brine Line Operations & Maintenance 07/01/ /30/2019 $ 25, $ - $ 25, , $ 21, Carlos Quintero STAN Stantec Alcoa Dike - BL Protection 05/30/ /31/2018 $ 13, $ - $ 13, , $ 10, David Ruhl DUDK Dudek Reach V Rehabilitation - Ph I, Tasks /03/ /30/2019 $ 134, $ - $ 134, $ 97, $ 37, David Ruhl VALI Vali Cooper & Associates Inc IEBL Reach V Rehabilitation 03/15/ /30/2019 $ 1,252, $ - $ 1,252, $ 816, $ 436, David Ruhl W&C Woodard & Curran 4D Rehabilitation - Engineering Services 04/11/ /31/2018 $ 226, $ - $ 226, $ 200, $ 25, David Ruhl BLAIS Blais & Associates Grant Needs Assessment & Grant Monitoring 10/01/ /31/2019 $ 24, $ - $ 24, $ 3, $ 21, Ian Achimore 84

85 Santa Ana Watershed Project Authority Open Task Orders Schedule Nov-18 (Reflects Invoices Received as of 12/13/18) Task Order No. Fund No. Vendor Name Task Description Begin Date End Date Original Change Total Billed Contract SAWPA Comments Project Contracts Contract Orders Contract To Date Balance Manager DUDK Dudek OWOW Plan Update /24/ /28/2019 $ 27, $ - $ 27, $ 17, $ 9, Mike Antos GEOS GeoScience Support Service SAR WLA Model Update 02/01/ /31/2018 $ 249, $ 65, $ 314, $ 301, $ 13, Mark Norton RISK Risk Sciences Basin Monitoring TF 11/06/ /31/2018 $ 73, $ - $ 73, $ 52, $ 20, Mark Norton SAWA Santa Ana Watershed Association Van Buren Bridge Suker Restoration 09/26/ /31/2019 $ 15, $ - $ 15, $ 5, $ 9, Ian Achimore SCH Scheevel Engineering S.A. Sucker - Beneficial Use Project 04/18/ /31/2018 $ 96, $ - $ 96, $ 88, $ 7, Ian Achimore SCH Scheevel Engineering S.A. Sucker - Habitat Construction Management 09/17/ /31/2019 $ 12, $ - $ 12, $ 5, $ 7, Ian Achimore CDM CDM Smith CBRP Implementation Support (Cucamonga) 02/08/ /31/2018 $ 12, $ - $ 12, $ 5, $ 6, Mark Norton RISK Risk Sciences MSAR TMDL Task Force 07/01/ /30/2019 $ 49, $ - $ 49, $ 7, $ 42, Rick Whetsel CDM CDM Smith Regional Bacteria Monitoring Program 07/01/ /30/2019 $ 324, $ 324, $ 113, $ 211, Rick Whetsel RISK Risk Sciences Compliance Expert - RWQM TF 07/01/ /30/2019 $ 46, $ - $ 46, $ 6, $ 40, Rick Whetsel SAWA Santa Ana Watershed Association Arundo Surveying 07/17/ /31/2019 $ 23, $ - $ 23, $ - $ 23, Ian Achimore DEGR DeGrave Communications Social Media Support - EC TF 07/01/ /30/2019 $ 30, $ - $ 30, $ 10, $ 19, Mark Norton PO CAPOC Green House Gas Contract - WECAN 06/27/ /31/2018 $ 16, $ - $ 16, $ 4, $ 12, Mike Antos PO CAPR Green House Gas Contract - WECAN 10/31/ /31/2018 $ 85, $ - $ 85, $ 85, $ (850.00) Mike Antos PO CAPSB Green House Gas Contract - WECAN 06/20/ /31/2018 $ 868, $ 26, $ 895, $ 894, $ Mike Antos ECOT Ecotech WECAN Landscaping Project 05/26/ /31/2018 $ 1,300, $ 82, $ 1,382, $ 1,308, $ 73, Mike Antos ECOT Ecotech WECAN Landscaping Project 04/04/ /30/2018 $ 612, $ - $ 612, $ 579, $ 32, Mike Antos ECOT Ecotech WECAN Landscaping Project 03/13/ /30/2018 $ 27, $ - $ 27, $ 5, $ 21, Mike Antos GMC Green Media Creations WECAN Outreach and Management 05/26/ /31/2018 $ 170, $ 20, $ 190, $ 176, $ 13, Mike Antos GMC Green Media Creations WVWD Turf Removal 04/11/ /30/2018 $ 80, $ 80, $ 79, $ Mike Antos PO California Rural Water Association Disadvantaged Communities Grant 07/19/ /30/2020 $ 240, $ - $ 240, $ 96, $ 143, Mike Antos DEGR Degrave Communications Social Meida Support 03/20/ /30/2019 $ 78, $ - $ 78, $ 17, $ 61, Mike Antos PO Local Government Commission Disadvantaged Communities Grant 07/19/ /30/2020 $ 442, $ - $ 442, $ 197, $ 244, Mike Antos PO UC Irvine Disadvantaged Communities Grant 11/06/ /30/2020 $ 105, $ 22, $ 127, $ 124, $ 2, Mike Antos 85

86 Santa Ana Watershed Project Authority Open Task Orders Schedule Nov-18 (Reflects Invoices Received as of 12/13/18) Task Order No. Fund No. Vendor Name Task Description Begin Date End Date Original Change Total Billed Contract SAWPA Comments Project Contracts Contract Orders Contract To Date Balance Manager PO University Enterprises Corporation Disadvantaged Communities Grant 07/19/ /30/2020 $ 1,290, $ - $ 1,290, $ 117, $ 1,172, Mike Antos PO Water Education Foundation Disadvantaged Communities Grant 07/19/ /30/2020 $ 150, $ - $ 150, $ 8, $ 141, Mike Antos CVS CV Strategies FAQ on Conservation Based Rates 11/29/ /31/2019 $ 25, $ 15, $ 40, $ 23, $ 16, Ian Achimore MSS Miller Spatial Services Geocoding & Business Type Classification 08/24/ /31/2018 $ 300, $ - $ 300, $ 162, $ 137, Rick Whetsel OMNI OmniEarth Inc Web Based Water Consumption Reporting 09/21/ /31/2018 $ 1,500, $ - $ 1,500, $ 858, $ 641, Mark Norton RMC Woodard & Curran SARCCUP Program Mgmt Services 07/01/ /30/2019 $ 224, $ - $ 224, $ 55, $ 168, Ian Achimore RMC Woodard & Curran Technical Writing & Outreach Support 10/24/ /31/2018 $ 37, $ - $ 37, $ - $ 37, Mark Norton $ 4,697,

87 Fund No. LIST OF SAWPA FUNDS Fund Description Fund Group General Fund General State Lobbying General Federal Lobbying General Grant Applications General 130 Proposition 84 Program Management - Round 1 OWOW 135 Proposition 84 Program Management Round 2 OWOW 140 Proposition 84 Program Management Drought Round OWOW 145 Proposition 84 Program Management 2015 Round OWOW 240 Brine Line Enterprise Brine Line Brine Line Protection Downstream Prado Capital Projects Brine Line Protection Above Prado Capital Projects Brine Line Protection D/S Prado in Riverside County Capital Projects 326 Reach V Capital Repairs Capital Projects 327 Reach IV-D Corrosion Repair Capital Projects Basin Planning General OWOW USBR Partnership Studies OWOW 372 Imported Water Recharge Work Group Roundtable 373 Watershed Management (OWOW) OWOW 374 Basin Monitoring Program Task Force Roundtable 381 Santa Ana River Fish Conservation Roundtable MSAR TMDL Task Force Roundtable 386 Regional Water Quality Monitoring Task Force Roundtable 387 Arundo Management & Habitat Restoration Roundtable 392 Emerging Constituents Task Force Roundtable 396 Forest First Roundtable 397 Energy Water DAC Grant Project OWOW 398 Proposition 1 - DACI OWOW 477 LESJWA Administration Roundtable Proposition 84 Capital Projects Round 1 & 2 OWOW Proposition 84 Drought Capital Projects OWOW Proposition 84 Final Round SARCCUP OWOW 87

88 Santa Ana Watershed Project Authority Brine Line Debt Service Funding Analysis November 30, 2018 FYE T-Strip Capacity Ending Cash Maturity Loan Receipts Rates Loan Pymts Interest Earned * Excess Cash Balance Beginning Balance 5,335, ,000 89,053 1,708,750 (3,191,277) 26,392 (972,082) 4,363, ,000-1,708,750 (2,835,027) 56,175 (675,102) 3,688, ,708,750 (2,835,027) 42,673 (1,083,604) 2,604, ,708,750 (2,607,713) 21,001 (877,961) 1,726, ,708,750 (1,708,750) 3,442 3,442 1,730, ,708,750 (1,708,750) 3,511 3,511 1,733, ,708,750 (1,708,750) 3,581 3,581 1,737, ,708,750 (1,708,750) 3,653 3,653 1,740, ,708,750 (1,708,750) 3,726 3,726 1,744, ,708,750 (1,708,750) 3,800 3,800 1,748, ,708,750 (1,708,750) 3,876 3,876 1,752, ,708,750 (1,708,750) 3,954 3,954 1,756, ,708,750 (1,708,750) 4,033 4,033 1,760, ,708,750 (1,708,750) 4,113 4,113 1,764, ,708,749 (1,708,749) 4,196 4,196 1,768, ,476 (664,476) 4,280 4,280 1,772, ,476 (664,476) 4,365 4,365 1,777, ,476 (664,476) 4,452 4,452 1,781, ,476 (664,476) 4,541 4,541 1,786, ,476 (664,476) 4,632 4,632 1,790, ,476 (664,476) 4,725 4,725 1,795, ,476 (664,476) 4,819 4,819 1,800, ,476 (664,476) 4,916 4,916 1,805, ,476 (664,476) 5,014 5,014 1,810, ,476 (664,476) 5,114 5,114 1,815, ,476 (664,476) 5,217 5,217 1,820, ,476 (664,476) 5,321 5,321 1,825, ,476 (664,476) 5,427 5,427 1,831, ,476 (664,476) 5,536 5,536 1,836, ,476 (664,476) 5,647 5,647 1,842, ,000 89,053 35,598,389 (40,232,434) 262,132 (3,492,859) - *Interest earned is based on a conservative 2.00% average return over the period 88

89 Santa Ana Watershed Project Authority Brine Line Debt Service Payment Schedule November 30, 2018 New Remaining FYE Interest Principal Total Payment SRF Loan Principal ,699 2,539,821 3,060,520 15,088,592 31,938, ,977 2,107,050 2,835,027-29,831, ,909 2,160,119 2,835,027-27,671, ,485 2,214,543 2,835,027-25,456, ,670 2,043,043 2,607,713-23,413, ,020 1,194,730 1,708,750-22,218, ,808 1,222,942 1,708,750-20,996, ,917 1,251,833 1,708,750-19,744, ,330 1,281,420 1,708,750-18,462, ,030 1,311,719 1,708,750-17,151, ,000 1,342,750 1,708,750-15,808, ,221 1,374,529 1,708,750-14,433, ,675 1,407,074 1,708,750-13,026, ,344 1,440,405 1,708,750-11,586, ,208 1,474,541 1,708,750-10,111, ,248 1,509,501 1,708,749-8,602, , , ,476-8,101, , , ,476-7,590, , , ,476-7,070, , , ,476-6,540, , , ,476-6,000, , , ,476-5,449, , , ,476-4,888, , , ,476-4,317, , , ,476-3,734, , , ,476-3,141, , , ,476-2,536, , , ,476-1,920, , , ,476-1,292, , , , , , , , Debt Service Payment Schedule Fiscal Years $6 $5 Millions $4 $3 $2 Principal Interest $1 $

90 Total Cash & Investments $71 $66 Millions $61 $56 $51 $46 $41 $47 $45 $47 $45 $45 $53 $47 $54 $53 $58 $54 $36 $31 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Oct'18 Nov'18 90

91 CASH BALANCE & SOURCE OF FUNDS November 30, 2018 Reserve Accounts Cash and Investments Total Checking LAIF Savings Investment Certificates Treasury (Cash) Account EPA Securities of Deposit Strips Total 100 General Fund $ 2,410,566 2,410, $ 2,410, Building Reserve $ 1,019,151-1,019, $ 1,019, Basin Planning General $ 338, , $ 338, USBR Partnership Studies $ 53,452-53, $ 53, Watershed Management Plan $ 333, , $ 333, Self Insurance Reserve $ 4,066,010-4,066, $ 4,066, Brine Line Debt Retirement $ 5,312,548-4,590, ,416 $ 5,312, Brine Line - Pipeline Replacement $ 18,934,107-5,479,651-12,218,795 1,235,661 - $ 18,934, Brine Line - OCSD Rehabilitation $ 3,591,892-3,591, $ 3,591, Brine Line - Capacity Management $ 11,502,545-11,502, $ 11,502, Brine Line - OCSD Future Capacity $ 1,761,077-1,761, $ 1,761, Brine Line - Flow Imbalance Reserve $ 85,103-85, $ 85, Brine Line - Operating Reserve $ 4,951, ,235 4,828, $ 4,951, Legal Defense Fund $ 451, , $ 451, Imported Water Recharge $ (792) - (792) $ (792) 374 Basin Monitoring Program TF $ 463, , $ 463, SAR Fish Conservation $ 75,571-75, $ 75, Middle SAR TMDL TF $ 41,504-41, $ 41, RWQ Monitoring TF $ 407, , $ 407, Mitigation Bank Credits $ 945, , $ 945, Emerging Constituents TF $ 113, , $ 113, Energy - Water DAC Grant $ 193, , $ 193, Prop 84 - SARCCUP Projects $ 778, , $ 778,652 $ 57,829,021 $ 2,533,801 $ 40,667,072 $ 451,276 $ 12,218,795 $ 1,235,661 $ 722,416 $ 57,829,021 91

92 Cash & Investments November 2018 $57,829,021 Securities, $12,218,795, 21% Certificates of Deposit, $1,235,661, 2% Checking Accounts, $2,533,801, 5% T Strips, $722,416, 1% Savings EPA, $451,276, 1% LAIF, $40,667,072, 70% 92

93 Santa Ana Watershed Project Authority Reserve Account Analysis November 30, 2018 Estimated Interest Fund Loan/T-Strip Debt Service Inter-Fund Fund Fund Reserve Account 6/30/2018 Earned Contributions Receipts Payments Loans Expenses 11/30/2018 Changes 6/30/2019 Brine Line Operating Reserve 2,585,699 28,136 5,351,841 (3,014,080) 4,951,596-4,951,596 Flow Imbalance Reserve 93, (9,415) 85,103-85,103 OCSD Future Capacity 1,745,247 15,830 1,761,077-1,761,077 Capacity Management 11,352, ,055 11,502,545-11,502,545 Pipeline Replacement 11,309, ,671 7,842,347 (337,196) 18,934,107 (858,930) 18,075,177 OCSD Rehabilitation 3,559,605 32,288 3,591,892-3,591,892 Debt Retirement 5,157,252 43, ,977 89,053 (1,482,528) 4,590,132 2,019,532 6,609,664 Self Insurance 3,988,170 36,173 41,667 4,066,010 58,333 4,124,343 General Fund 2,636,095 25, ,049 (761,233) (143,064) 2,410,566-2,410,566 Building Reserve 910,526 8, ,000 1,019,151-1,019,151 43,338, ,722 14,771,881 89,053 (1,482,528) (761,233) (3,503,755) 52,912,180 1,218,935 54,131,114 93

94 Twelve Month Maturity Schedule Securities $7,500,000 $7,000,000 $6,500,000 $6,000,000 $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 35% 25% 20% 11% 9% < 1 YR 1 to 2 YRS 2 to 3 YRS 3 to 4 YRS 4 to 5 YRS 94

95 SAWPA TREASURER'S REPORT As of November 30, 2018 Investment T-Strips Safekeeping US Bank Purchase Maturity Initial Current Book Market Interest T-STRIPS Debt Date Date PAR Cost Discount Discount Value Value Rate USB TVRI 02/11/ /15/ , , , , , , % Investment Commercial Safekeeping US Bank $ 790, $ 228, $ 561, $ 67, , $ 766, % Purchase Maturity Unit Current Market Interest Type Security Date Date Cost Cost Principal Value Value Rate Agency FHLMC 3/27/2014 3/27/ $ 546, $ 500, $ 500, , % Agency FHLMC 9/16/2016 8/12/ $ 990, $ 1,000, $ 1,000, , % Agency FHLMC 4/17/2017 1/13/ $ 512, $ 500, $ 500, , % Agency FHLB 5/26/2015 6/14/ $ 504, $ 500, $ 500, , % Agency FHLB 6/16/2016 6/12/ $ 1,026, $ 1,000, $ 1,000, , % Agency FHLB 12/14/2017 6/10/ $ 998, $ 1,000, $ 1,000, , % Agency FNMA 3/27/2014 2/19/ $ 501, $ 500, $ 500, , % Agency FNMA 12/28/ /28/ $ 1,002, $ 1,000, $ 1,000, , % Agency FNMA 6/16/ /30/ $ 1,015, $ 1,000, $ 1,000, , % Agengy USTN 11/17/ /31/ $ 1,005, $ 1,000, $ 1,000, , % Agengy USTN 11/17/ /30/ $ 1,001, $ 1,000, $ 1,000, , % Agengy USTN 6/17/2016 8/31/ $ 507, $ 500, $ 500, , % Agengy USTN 6/16/2016 9/30/ $ 506, $ 500, $ 500, , % Agengy USTN 6/16/ /31/ $ 506, $ 500, $ 500, , % Agency USTN 12/14/2017 7/31/ $ 969, $ 1,000, $ 1,000, , % CORP Apple Inc. 10/15/2018 5/3/ $ 479, $ 500, $ 500, , % CORP Toyota Motor Credit Corp. 10/15/2018 9/20/ $ 497, $ 500, $ 500, , % CD Ally Bank 4/20/2017 4/20/ $ 248, $ 248, $ 248, , % CD American Exp Centurion 4/19/2017 4/19/ $ 248, $ 248, $ 248, , % CD American Express BK FSB 5/10/2017 5/10/ $ 248, $ 248, $ 248, , % CD Wells Fargo Bank NA 12/2/ /3/ $ 245, $ 245, $ 245, , % CD Goldman Sachs Bank USA 12/20/ /20/ $ 248, $ 248, $ 248, , % $ 13,808, $ 13,737, $ 13,737, ,451, % 95

96 Average Daily Flow by Month Actual Owned 96

97 SUMMARY OF LABOR MULTIPLIERS Benefit Rate Total Employee Benefits 563, Total Payroll 1,473,924 Gross Indirect Costs 1,449,696 Less: Member Contributions & Other Revenue (187,500) Indirect Costs for Distribution 1,262,196 Indirect Rate Direct Labor 778, Indirect Costs 1,262,196 FY Labor multiplier - thru 11/30/ FY Labor multiplier FY Labor multiplier FY Labor multiplier FY Labor multiplier FY Labor multiplier

98 INDIRECT COSTS ( to be Distributed) Actual thru Actual thru G/L Acct. Description 11/30/18 G/L Acct. Description 11/30/ Salaries - Regular $ 695, Equipment Rented $ 15, Benefits $ 237, Equipment Repair / Maintenance $ Tuition Reimbursement $ Computer Hardware $ 23, Training $ Software / Updates / Licensing $ 80, Education $ Internet Services $ 5, Other Training & Education $ 3, Computer Supplies $ 2, Audit Fees $ 7, Computer Repair / Maintenance $ Consulting $ 100, Offsite Meeting / Travel Expense $ Temporary Services $ 20, In House Meetings $ Other Professional Services $ Conference Expense $ 5, Other Contract Services $ Car, Repair, Maint $ Legal Fees $ Dues $ 20, Employment Recruitment $ Subscriptions $ Materials & Supplies $ Contributions $ 11, Safety $ Bank Charges $ Security $ Shipping / Postage $ 1, Custodial Contract Services $ 5, Office Supplies $ 4, Landscaping Maintenance $ 3, Offsite Storage $ 3, HVAC $ 2, Commission Fees $ 10, Facility Repair & Maintenance $ 3, Commission Mileage Reimb. $ 1, Telephone $ 6, Other Commission Expense $ Cellular / Paging Services $ 4, Other Expense $ 1, Electricity $ 8, Retiree Medical Expense $ 47, Water Services $ 2, Insurance Expense $ 27, Equipment Expensed $ 2, Building Repair/Replacement Reserve $ 41, Fixed Assets $ 36,774 (Continued - next column) Total Costs $ 1,449,696 Direct Costs Paid by Projects $ 1,055,714 Member Contribution Offset $ 187,500 $ 1,243,214 Over allocation % -16.4% Over (Under) Allocation of General Fund Costs $ (206,482) 98

99 BENEFITS SUMMARY (Distributed based on Actual Labor) Projected G/L Acct Description Budget 11/30/18 FYE FICA Expense 191,217 $ 61,720 $ 148, Medicare Expense 56,479 $ 19,410 $ 46, State Unemployment Insurance 5,824 $ 269 $ 6, Worker's Compensation Insurance 102,821 $ 22,751 $ 68, State Disability Insurance 25,551 $ 8,441 $ 20, PERS Pension Plan 730,279 $ 216,450 $ 519, Medical Expense 459,036 $ 186,020 $ 446, Dental Expense 32,630 $ 11,393 $ 27, Vision Insurance 8,255 $ 3,028 $ 7, Life Insurance Expense 16,014 $ 6,080 $ 14, Long Term Disability 18,657 $ 6,937 $ 16, Wellness Program Expense 3,500 $ 865 $ 2, a Profit Sharing - Employers Contribution - $ - $ Car Allowance 36,000 $ 20,000 $ 48,000 Total Benefits 1,686, ,364 1,371,413 Total Payroll 3,859,112 $ 1,473,924 $ 3,537,418 Benefits Rate 43.7% 38.2% 38.8% 99

100 Santa Ana Watershed Project Authority Labor Hours Budget vs Actual Month Ending November 30, 2018 Fund Budget Actual % 100 General & Administrative 24,625 11, % 130 Prop 84 Round 1 Administration % 135 Prop 84 Round 2 Administration % 140 Prop Drought Administration % 145 Prop 84 Final Round Administration 1, % 240 Brine Line Enterprise 18,250 7, % 320 Brine Line Protection % 326 Reach V Capital Repairs % 327 Reach IV-D Corrosion Repairs 1, % General Basin Planning 2, % USBR Partnership Studies % 372 Imported Water Recharge % 373 Watershed Management Plan 2, % 374 Basin Monitoring Program % 381 SAR Fish Conservation % Chino TMDL Facilitation % 386MONIT Storm Water Quality Standards TF % 387 Arundo Removal & Habitat Restoration % 392 Emerging Constituents % 396 Forest First % 397 Water-Energy Grant Administration % 397EXPAN Water-Energy WVWD Administration % 398ADMIN DACI Grant 2, % LESJWA - Administration % 477TMDL LESJWA - TMDL Task Force % A Prop Drought Implementation % C Prop Drought Implementation % I Prop 84 Final Round Implementation % PA23 Prop 84 Final Round Implementation % WUEAMDIN Prop 84 Final Round Implementation % SMART Prop 84 Final Round Implementation % 62,080 24, % 100

101 General Manager s Report January 2019 Santa Ana Watershed Project Authority Sterling Avenue, Riverside, CA INSIDE THE JANUARY REPORT Alcoa Protective Dike Temescal Canyon Road Widening Project Prop 84 Site Visits Prop 1, Round 1 Call for Project Seeking Grants Watershed Manager Senior Watershed Manager Recruitment 2019 MSSC Annual Salinity Summit Alcoa Protective Dike The U.S. Army Corps of Engineers is constructing the Alcoa Protective Dike in the City of Corona as part of the Santa Ana Mainstem Project. There are two locations where the proposed dike improvements will cross over the existing Brine Line on Reach 4B. At issue is the estimated amount of ground settlement and the impact to the Brine Line. Recently, Orange County Public Works conducted a supplemental geotechnical investigation to update the estimated settlement amount with data much closer to the Brine Line and other existing utilities. Based on the new data, it has been determined that there is an impact to the Brine Line beneath the proposed dike embankments. SAWPA is continuing to work with Stantec to evaluate the impacts and prepare a potential protection option with an order of magnitude cost. A technical memorandum detailing the findings is anticipated by the end of January Temescal Canyon Road Widening Project Riverside County Transportation Department (RCTD) is widening Temescal Canyon Road and constructing storm drain improvements between Dos Lagos Road in the City of Corona to Dawson Canyon Road in Temescal Valley. Impacts to the Brine Line Reach V include the adjustment of nine maintenance access structures and the protection of the existing 24 Brine Line due to a shallow storm drain crossing. SAWPA has contracted with RCTD to have their contractor perform the work. The total cost to perform the work is $47,300. In addition to other existing utilities within Temescal Canyon Road, the proposed storm drain is crossing a 42 Elsinore Valley Municipal Water District (EVMWD) water line adjacent to the Brine Line. Due to the size of the water line the contractor is lowering the profile of the water line to allow the storm drain crossing. Recently, RCTD s contractor potholed the existing water line and found the water line is much closer to the Brine Line than anticipated (less than 2 feet). To protect the structural integrity of the Brine Line a modification to the protection detail is necessary. SAWPA is working with RCTD, their design engineer and contractor and EVWMD to design a solution that protects both the Brine Line and the water line. Due to a change in the proposed protection plan for the Brine Line, a change order may be requested from Rev. 10/17/ RCTD Website the contractor. If a change order is requested and it exceeds the General Manager s spending authority, the request will be presented to the Commission for consideration Santa Ana River Watershed Conference 101

102 Page 2 General Manager s Report - January 2019 Proposition 84 Site Visits Staff conducted seven Prop 84 site visits in the last quarter of The purpose of the site visits is to confirm and assess the work progress, consistency with the scope of work and identify possible areas of concern. Project site visits included OCWD s Alamitos Barrier Improvement Project (Round 1, Project n), WMWD s Arlington Basin Water Quality Improvement Project (Round 1, Project o), USFS Forest First (Round 2, Project 4), IEUA s Wineville Regional Water Pipeline/Groundwater Recharge System Upgrades (Round 2, Project 5), City of Corona Corona/Home Gardens Multi-Jurisdictional Water Transmission Line (Round 2, Project 9), City of Irvine s Peters Canyon Water Capture and Reuse Pipeline (Round 2, Project 17), OCSD s Newhope-Placentia Trunk Sewer Replacement Project (Final Round, Project 2), and City of Riverside s Integrated Watershed Protection Program (Final Round, Project 3). All projects visited are progressing well and no issues of concern were reported. Proposition 1, Round 1 - Call for Projects Seeking Grants SAWPA is now accepting projects for Integrated Regional Water Management (IRWM) Prop 1, Round 1 Grant Funding. Submit your project by Tuesday, January 22, 2019 to be considered. Projects that are approved by the OWOW Governance and the Department of Water Resources are expected to be awarded grants in late Submit your eligible project here: Watershed Manager/Senior Watershed Manager Recruitment SAWPA currently has one opening in its Planning Department for a Watershed Manager/Senior Watershed Manager. This position will be filled at the Watershed Manager or Senior Watershed Manager level based on qualifications. This position is open until filled and may close at any time. The first review of applications will be on Thursday, January 31, MSSC Annual Salinity Summit SAWPA will be participating as a Bronze Level Sponsor at the 2019 MSSC Annual Salinity Summit, February 28 - March 1, 2019 in Las Vegas, Nevada Santa Ana River Watershed Conference If you would like to become an event sponsor, please contact Patrick Dunlap at the Water Education Foundation, at or via at pdunlap@watereducation.org. Santa Ana Watershed Project Authority Sterling Avenue, Riverside, CA

103 Santa Ana Watershed Project Authority Executive Financial Information Report November 2018 Staff comments provided on the last page are an integral part of this report. Overview This report highlights the agency s key financial indicators for the Fiscal Year to Date (FYTD) through November 2018 unless otherwise noted. Budget to Actual Expenses by Fund Type Favorable Annual Budget FYTD Budget FYTD Actual Favorable (Unfavorable) Variance General Fund $650,695 $329,456 $529,284 ($199,828) Brine Line Enterprise 11,090,587 4,621,078 4,013, ,162 Debt Service Fund 3,183,451 1,482,827 1,482, Capital Project Fund 7,986,032 3,327, ,901 2,861,612 OWOW Fund 6,380,106 2,658,378 1,634,883 1,023,495 Roundtable Fund 1,475, , ,410 30,582 Total $30,766,852 $13,034,244 $8,710,922 $4,323,322 5 Budget to Actual Expenses by Fund Type Millions Budget Actual 0 General Fund Brine Line Fund Debt Service Fund Capital Project Fund OWOW Fund Roundtable Fund 103

104 Budget to Actual Revenues by Source Concern Annual Budget FYTD Budget FYTD Actual Favorable (Unfavorable) Variance Member Contributions $1,471,695 $1,471,695 $1,471,695 $ Participant Fees 1,309,273 1,196,965 1,268,316 71,351 Discharge Fees 11,090,587 4,621,078 4,516,103 (104,975) SRF Loans 3,000,000 Interest & Investments 1,173, , ,885 (266,864) Use of Reserves 6,995,901 3,327, ,901 (2,861,612) Mitigation Credit Sales 88,980 37,075 (37,075) Other 206,674 86,114 1,162,374 1,076,260 Operating Transfers 144, , ,252 Grant Proceeds 4,777,256 1,990,523 1,169,474 (821,049) Total $30,258,200 $13,507,964 $10,564,000 ($2,943,964) 5.0 Budget to Actual Revenues by Source Millions Budget Actual 0.0 Member Contributions Participant Fees Discharge Fees SRF Loans Interest & Investments Use of Reserves Mitigation Credit Sales Other Operating Transfers Grant Proceeds 104

105 Total Cash & Investments November $57.8 Million Securities 21% Legal Defense Fund 1% Certificates of Deposit 2% Treasury Strips 1% Checking 5% LAIF 70% Reserve Fund Balance November Amount General Fund 2,410,566 Building Fund 1,019,151 Legal Defense Fund 451,276 OWOW Fund 1,697,556 Roundtable Fund 2,045,593 Self Insurance 4,066,010 Debt Retirement 5,312,548 Pipeline Replacement 18,934,107 OCSD Rehabilitation 3,591,892 Capacity Management 11,502,545 Future Capacity 1,761,077 Flow Imbalance 85,103 Brine Line Operating 4,951,596 Total Reserves $57,829,