Agenda - Municipal Water District of Orange County

REGULAR MEETINGOF THE BOARD OF DIRECTORSMUNICIPAL WATER DISTRICT OF ORANGE COUNTYAND ADJOURNED MEETING OF THEMUNICIPAL WATER DISTRICT OF ORANGE COUNTYWATER FACILITIES CORPORATION18700 Ward Street, Board Room, Fountain Valley, CaliforniaOctober 20, 2010, 8:30 a.m.PLEDGE OF ALLEGIANCEAGENDAROLL CALLPUBLIC COMMENTS/PARTICIPATIONAt this time, members of the public will be given an opportunity to address the Boardconcerning items within the subject matter jurisdiction of the Board. Members of the publicmay also address the Board about a particular Agenda item at the time it is considered bythe Board and before action is taken. If the item is on the Consent Calendar, please informthe Board Secretary before action is taken on the Consent Calendar and the item will beremoved for separate consideration.The Board requests that all members of the public who want to address the Board completea “Request to be Heard” form available from the Board Secretary prior to the meeting.ITEMS RECEIVED TOO LATE TO BE AGENDIZEDDetermine need and take action to agendize items(s) which arose subsequent to the postingof the Agenda. (ROLL CALL VOTE: Adoption of this recommendation requires a two-thirdsvote of the Board members present, or, if less than two-thirds of the Board members arepresent, a unanimous vote of those members present.)ITEMS DISTRIBUTED TO THE BOARD LESS THAN 72 HOURS PRIOR TO MEETINGPursuant to Government Code section 54957.5, non-exempt public records that relate toopen session agenda items and are distributed to a majority of the Board less than seventytwo(72) hours prior to the meeting will be available for public inspection in the lobby of theDistrict’s business office located at 18700 Ward Street, Fountain Valley, California 92708,during regular business hours. When practical, these public records will also be madeavailable on the District’s Internet Web site, accessible at http://www.mwdoc.com.EMPLOYEE SERVICE AWARDS

Regular Meeting Agenda October 20, 2010MWDOC WATER FACILITIES CORPORATION AGENDA ITEMSWFC-1FINANCIAL REPORTa. Annual Filing of Tax Compliance Reports.Recommendation:Receive and file report as presented.WFC-2ADOPT AMENDED AND RESTATED BYLAWS OF MWDOC WATERFACILITIES CORPORATIONRecommendation:Approve Amended and Restate Bylaws.ADJOURNMENT -- END MWDOC WFC AGENDANEXT RESOLUTION NO. 1891CONSENT CALENDAR (Items 1 to 5)(All matters under the Consent Calendar will be approved by one motion unless a Boardmember requests separate action on a specific item)1. MINUTESa. September 1, 2010 Workshop Board Meetingb. September 15, 2010 Regular Board Meetingc. September 18, 2010 Special Board MeetingRecommendation: Approve as presented.2. COMMITTEE MEETING REPORTSa. Executive Committee Meeting: September 16, 2010b. MWDOC/OCWD Joint Planning Committee Meeting: September 22, 2010Recommendation:Receive and file as presented.3. TREASURER'S REPORTSa. MWDOC Revenue/Cash Receipt Register as of September 30, 2010b. MWDOC Disbursement Register as of September 30, 2010Recommendation:Ratify as presented.c. MWDOC Summary of Cash and Investment and Portfolio MasterSummary Report (Cash and Investment report) as of July 31, 2010d. Water Use Efficiency Projects Cash FlowRecommendation:Receive and file as presented2

Regular Meeting Agenda October 20, 20104. FINANCIAL REPORTa. Preliminary Financial Report for Fiscal Year 2009-2010 (Unaudited)5. DISTRICT CONFERENCES/SEMINARSa. National Water Resources Association Annual Conference, November 10-12, 2010, San Diego, CAb. Colorado River Water Users Association Annual Conference, December15-17, 2010, Las Vegasc. Annual North Texas Regional Water Conservation Symposium, November18, 2010, Dallas, TXRecommendation:Authorize attendance by Directors and such members ofDistrict staff as approved by the General Manager.– End Consent Calendar –ACTION CALENDAR6-1 MWDOC DRAFT STRATEGIC REVIEWRecommendation:Review and discuss the revised Mission Statement, theStrategic Goal Statements, the draft Strategies and the draftObjectives and approve them.6-2 AMENDMENT TO ADMINISTRATIVE CODE SECTIONS 11100-11104REGARDING RECORDS RETENTION/DESTRUCTION SCHEDULERecommendation: Approve the revisions to the Administrative Code Sectionregarding the District’s Records Retention/DestructionSchedule.6-3 PILOT TURF REMOVAL REBATE INCENTIVE PROGRAMRecommendation: (1) Authorize MWDOC’s Water Use EfficiencyDepartment staff to implement a Pilot Turf RemovalRebate Incentive Program;(2) Utilize MET’s budgeted funds in the amount of$294,559 as the source of the rebate incentive funds;(3) Authorize MWDOC’s Accounting Department to issuerebate checks to qualified residential and commercialparticipants3

Regular Meeting Agenda October 20, 20106-4 SOUTH ORANGE COASTAL OCEAN DESALINATION PROJECTPHASE 3 EXTENDED PUMPING AND PILOT PLANT TESTINGADDITIONAL PILOT PLAN TESTING FOR IRON/MANGANESE REMOVALAND RELATED AUTHORIZATIONSRecommendation: Authorize the General Manager to approve costauthorizations in the amount of $444,902, as follows(funding for these projects is coming from the SOCODParticipants or Grant Funds; not from MWDOC):1. To Separation Processes, Inc. totaling $434,912 in thefollowing amounts for specified servicesa. $404,457 for New AWT (Advanced WaterTreatment) Pilot Plant Testing for removal of ironand manganese to be funded from a new U.S.Bureau of Reclamation WaterSMART grant.b. $4,184 for addition of a security system to theMobile Test Facility.c. $16,427 for additional sampling services to supporton-going radium isotopic testing by Dr. MattCharetted. $9,844 for installation of a sand separation deviceand for sand measurement2. To Chambers Group for CEQA/NEPA and permittingsupport for the New AWT pilot plant units in theamount of $4,000.3. To Geoscience Support Services for analysis of thedrawdown effects on groundwater levels from Phase 3extended pumping through September 2010 in theamount of $5,990.6-5 SOUTH ORANGE COASTAL OCEAN DESALINATION PROJECTPHASE 3 EXTENDED PUMPING AND PILOT PLANT TESTINGSCW CONSTRUCTION CONTRACT AND INTUITECH PURCHASE ORDER– FINAL CHANGE ORDER APPROVALS, ACCEPT WORK AS COMPLETEAND AUTHORIZE FINAL PAYMENTSRES. NO. _____Recommendation: (1) Adopt Resolution accepting the work as complete, filea Notice of Completion for the SCW; and(2) Approve the authorized change orders as approvedby Carollo Engineers to the SCW Constructors contracttotaling $39,472.99 for a total contract amount of$518,921.99, accept the project as complete, andauthorize payment of the retention and make finalpayment upon execution of a close out agreement;4

Regular Meeting Agenda October 20, 2010(3) Approve authorized change orders to the Intuitechprocurement agreement in the amount of $9,509 for atotal agreement amount of $340,942, accept the projectas complete and authorize the final 10% payment. Inaddition, staff recommends the Board of Directorsapprove a change order to provide additional trainingservices to SPI in the amount of $2,848, bringing the totalamount of all work to $343,790;(funding is from the SOCOD Participants or Grant Funds,not MWDOC):6-6 TRAVEL ON FEDERAL INITIATIVES THROUGH THE END OF 2010Recommendation: Authorize the travel as outlined.6-7 JAMBA JUICE COMMUNITY APPRECIATION PROGRAMRecommendation: Authorize participation in the Jamba Juice CommunityAppreciation Program.INFORMATION CALENDAR(All matters under the Information Calendar will be Received/Filed as presentedfollowing any discussion that may occur)7. GENERAL MANAGER'S REPORT, OCTOBER 2010(ORAL AND WRITTEN)Recommendation:Receive and file report(s) as presented.8. MWDOC GENERAL INFORMATION ITEMSa. Board of Directors - Reports re: Conferences and Meetings and Requestsfor Future Agenda TopicsRecommendation:Receive and file as presented.ADJOURNMENTNote: Accommodations for the Disabled. Any person may make a request for a disability-relatedmodification or accommodation needed for that person to be able to participate in the public meeting bycontacting Maribeth Goldsby, District Secretary, at (714) 963-3058, or writing to Municipal Water District ofOrange County at P.O. Box 20895, Fountain Valley, CA 92728. Requests must specify the nature of thedisability and the type of accommodation requested. A telephone number or other contact informationshould be included so that District staff may discuss appropriate arrangements. Persons requesting adisability-related accommodation should make the request with adequate time before the meeting for theDistrict to provide the requested accommodation.5

Item No. WFC-1INFORMATION ITEMOctober 13, 2010TO:FROM:MWDOC Water Facilities Corporation Board of DirectorsKevin HuntGeneral ManagerStaff Contact: Phil LetrongSUBJECT:Annual filing of Water Facilities Corporation Tax compliance reportsSTAFF RECOMMENDATIONFor information only; receive and file.SUMMARYTo keep the corporation active, the following reports for the fiscal year ending June 30,2009 were filed on 10/31/09 on behalf of the Water Facilities Corporation:o Return of Organization Exempt from Income Tax (IRS Form 990)o California Exempt Organization annual Information Return (CA Form 199)o Annual Registration Renewal Fee Report to Attorney General of California (FormRRF-1)o State Controller ReportFiscal year 09-10 reports will be filed in the month of October 2010.Budgeted (Y/N): N/ABudgeted amount:Action item amount:Line item:Fiscal Impact (explain if unbudgeted):

Item No. WFC-2ACTION ITEMOctober 20, 2010TO:FROM:SUBJECT:Board of DirectorsKevin P. Hunt, General ManagerADOPT AMENDED AND RESTATED BYLAWS OF MWDOC WATERFACILITIES CORPORATIONRECOMMENDATIONIt is recommended the Board of Directors approve Amended and Restated Bylaws.DETAILED REPORTLegal Counsel has reviewed the attached MWDOC Water Facilities Corporation Bylaws andrecommended certain revisions; legal counsel’s final draft is attached.Budgeted (Y/N): n/aBudgeted amount: n/aAction item amount: n/aLine item:Fiscal Impact (explain if unbudgeted):

Stradling Yocca Carlson & RauthDraft of 9/29/10AMENDED AND RESTATEDBYLAWS OFMUNICIPAL WATER DISTRICT OF ORANGE COUNTY WATER FACILITIESCORPORATIONARTICLE IName, Organization and Purpose, Principal OfficeSection 1.1. Name. The name of this corporation is MUNICIPAL WATER DISTRICTOF ORANGE COUNTY WATER FACILITIES CORPORATION (hereinafter referred to as the“Corporation”).Section 1.2. Organization, Purpose and Use of Funds. The Corporation is a nonprofitpublic benefit corporation organized under the Nonprofit Public Benefit Corporation Law of the Stateof California (the “Law”) exclusively for the promotion of social welfare within the meaning ofSection 501(c)(4) of the Internal Revenue Code (the “Code”) and to provide assistance to theMunicipal Water District of Orange County (the “District”), and other public agencies in the State ofCalifornia, in the financing, refinancing, acquiring, constructing and rehabilitating of facilities, waterrights, land and equipment, and in the sale or leasing of facilities, water rights, land and equipment(collectively, the “Facilities”) and the financing and refinancing of other activities of public agenciesin the State of California as permitted by law for the use, benefit and enjoyment of the public servedby such agencies and any other purpose incidental thereto. The activities of the Corporation shall belimited to the activities described in its Articles of Incorporation. No gains, profits or dividends shallbe distributed to any of the Directors or officers of the Corporation; and no part of the net earnings,funds or assets of the Corporation shall inure to the benefit of any Director or any other person, firmor corporation excepting only as described herein.Section 1.3. Principal Office. The principal office of the Corporation is hereby fixed andlocated at the offices of the Municipal Water District of Orange County, 10500 Ellis Avenue,Fountain Valley, California 92708. The Board of Directors is hereby granted full power andauthority to change said principal office from one location to another in the County of Orange. Anysuch change shall be noted by the Secretary opposite this section, but shall not be considered anamendment to these Bylaws.ARTICLE IINo MembersSection 2.1. No Members. Pursuant to Section 5310 of the Law, the bylaws of a nonprofitcorporation may provide that the corporation shall have no members. The Corporation shall have nomembers.DOCSOC/1438386v2/022022-0000

ARTICLE IIIDirectorsSection 3.1. Powers. Subject to the limitations set forth in the Articles of Incorporation,the Bylaws, and the Law, and subject to the duties of Directors as prescribed by the Bylaws, allpowers of the Corporation shall be exercised by or under the authority of, and the business andaffairs of the Corporation shall be controlled by, the Board of Directors. No Director shall beresponsible for any error in judgment or for anything that such Director may do or refrain from doingin good faith. Without prejudice to such general powers, but subject to the same limitations, it ishereby expressly declared that the Directors shall have the following powers, to wit:First – To select and remove all appointed officers, agents and employees of theCorporation, prescribe such powers and duties for such officers, agents and employees as may not beinconsistent with law or the Articles of Incorporation or Bylaws, fix their compensation and requirefrom such officers, agents and employees security for faithful service;Second – To conduct, manage and control the affairs and business of the Corporationand to make such rules and regulations therefor not inconsistent with law, the Articles ofIncorporation or the Bylaws, as the Directors may deem best; andThird – To borrow money and incur indebtedness for the purposes of theCorporation, and to cause to be executed and delivered therefor, in the name of the Corporation orotherwise, promissory notes, bonds, certificates of participation, debentures, deeds of trust,mortgages, pledges, hypothecation or other evidences of debt and securities therefor.Section 3.2. Number of Directors. The authorized number of Directors shall be sevenuntil changed by amendment of the Articles of Incorporation or by amendment of the Bylaws.Section 3.3. Selection and Term of Office. The Directors of the Corporation shall be themembers of the Board of Directors of the District. Except as hereinafter provided and in accordancewith Section 5220(d) of the Law, each Director shall hold office for a term concurrent with suchDirector’s term as a member of the Board of Directors of the District. Unless a vacancy in the officeoccurs as herein provided, the Director appointed shall hold office until the expiration of suchDirector’s term and until a successor has been designated and has accepted the office.Section 3.4. Vacancies. Subject to the provisions of Section 5224 of the Law, anyDirector may resign effective upon giving written notice to the President, the Secretary, or the Boardof Directors, unless the notice specifies a later time for the effectiveness of such resignation. Nosuch resignation shall be effective, however, unless and until such Director shall have resigned fromthe Board of Directors of the District.A vacancy or vacancies on the Board of Directors shall be deemed to exist upon theexpiration of a Director’s term, if the authorized number of Directors comprising the Board ofDirectors of the District is increased, or upon the events specified in Government Code Section 1770including but not limited to the death, or resignation, on the Board of Directors of the District.DOCSOC/1438386v2/022022-00002

Vacancies on the Board of Directors shall be filled by the member of the Board of Directorsof the District pursuant to the same procedures for filling vacancies of the Board of Directors of theDistrict as provided in Government Code Section 1780.Section 3.5. Organization and Annual Meetings. The Board of Directors shall hold anannual meeting for the purpose of organization and the transaction of other business. Subject toSections 3.7 and 3.11 hereof, annual meetings of the Board of Directors shall be held on the date ofthe annual reorganization meeting of the Board of Directors of the District.Section 3.6. Regular Meetings. The Board of Directors by resolution may provide for theholding of regular meetings and may fix the time and place of holding such meetings.Section 3.7. Special Meetings; Notice Waiver. A special meeting of the Board ofDirectors shall be held whenever called in accordance with the Ralph M. Brown Act, commencing atSection 54950 of the Government Code of the State of California and Section 5211(a)(2) of the Lawand Section 3.11 hereof.Section 3.8. Adjourned Meetings; Notice of Adjournment. The Board of Directors mayadjourn any regular, adjourned regular, special or adjourned special meeting to a time and placespecified in the order of adjournment. Less than a majority may so adjourn from time to time. Acopy of the order or notice of adjournment shall be conspicuously posted on or near the door of theplace where the regular, adjourned regular, special or adjourned special meeting was held within 24hours after the time of the adjournment. When a regular or adjourned regular meeting is adjournedas provided in this Section 3.8, the resulting adjourned regular meeting is a regular meeting for allpurposes.Section 3.9. Majority. A majority of the Board of Directors shall constitute a quorum forthe transaction of any business. A majority of the Board of Directors is sufficient for every act ordecision of the Board of Directors (except as otherwise provided in Section 6.1), but in the event onlyfour Directors are present at a meeting duly held, any motion must be passed by a unanimous vote.Section 3.10. Fees and Compensation. Directors shall receive no compensation or expensesfrom the Corporation for services as Directors of the Corporation.Section 3.11. Ralph M. Brown Act. Notwithstanding any of the provisions of these Bylawsto the contrary, all meetings of the Board of Directors shall be subject to the Ralph M. Brown Act,commencing at Section 54950 of the Government Code of the State of California.Section 3.12. Conduct of Meetings. The President or, in the absence of the President, theVice President, or, in the absence of the Vice President, a Chairman chosen by a majority of theDirectors present, shall preside at meetings of the Board of Directors. All meetings of theCorporation shall be held in accordance with the provisions of the Law, except as otherwise requiredby the Ralph M. Brown Act, commencing at Section 54950 of the Government Code of the State ofCalifornia.DOCSOC/1438386v2/022022-00003

ARTICLE IVOfficersSection 4.1. Officers. The officers of the Corporation shall be a President, aVice President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of theBoard of Directors, one or more additional Vice Presidents, one or more Assistant Secretaries, one ormore Assistant Treasurers, and such other officers as may be appointed by the Board of Directors.One person may hold two or more offices, except that the offices of President and Secretary orPresident and Treasurer may not be combined.Section 4.2. President. The person serving from time to time as the President of the Boardof Directors of the District shall serve as the President of the Corporation. The President shallpreside at all meetings of the Board of Directors.Section 4.3. Vice President. The person serving from time to time as Vice President of theBoard of Directors of the District shall serve as Vice President of the Corporation, or, if there is noVice President of the Board of Directors of the District, then a Vice President shall be elected by theBoard of Directors. In the absence or disability of the President, the Vice President shall perform allthe duties of the President, and when so acting shall have all the powers of, and be subject to all therestrictions upon, the President. The Vice President shall have such other powers and perform suchother duties as from time to time may be prescribed for the Vice President by the Board of Directorsor by the Bylaws.Section 4.4. Secretary. The person serving from time to time as Secretary of the Districtshall serve as Secretary of the Corporation. The Secretary shall keep at the principal office of theCorporation a book of minutes of all meetings of Directors, with the time and place of holding, howcalled or authorized, the notice thereof given, and the names of those present at Directors’ meetings.Section 4.5. General Manager and Treasurer. The person serving from time to time as theGeneral Manager of the District shall serve as the General Manager and the Treasurer of theCorporation. The General Manager shall have responsibility for the day-to-day operations of theCorporation. In addition, the General Manager shall have such powers and obligations as may bedelegated thereto by written direction of the Board of Directors. The Treasurer shall keep andmaintain adequate and correct books of account showing the receipts and disbursements of theCorporation, and an account of its cash and other assets, if any. Such books of account shall at allreasonable times be open to inspection by any Director. The Treasurer shall deposit all moneys ofthe Corporation with such depositories as are designated by the Board of Directors, and shalldisburse the funds of the Corporation as may be ordered by the Board of Directors, and shall renderto the President or the Board of Directors, upon request, statements of the financial condition of theCorporation.Section 4.6. Subordinate Officers. Subordinate officers shall perform such duties as shallbe prescribed from time to time by the Board of Directors or the President.Section 4.7. Term of Office. The term of office of the President and Vice President of theCorporation shall coincide with the term of office of the President and the Vice President of theDistrict. The term of office of the Secretary and Treasurer of the Corporation, respectively, shallcoincide with each individual’s term of employment with the District.DOCSOC/1438386v2/022022-00004

ARTICLE VMiscellaneousSection 5.1. Execution of Documents. The Board of Directors may authorize any officeror officers as agent or agents, to enter into any contract or execute any instrument in the name of andon behalf of the Corporation and such authority may be general or confined to specific instances; andunless so authorized by the Board of Directors, no officer, agent or other person shall have any poweror authority to bind the Corporation by any contract or engagement or to pledge its credit or to renderit liable for any purpose or to any amount.Section 5.2. Inspection of Bylaws. The Corporation shall keep in its principal office theoriginal or a copy of these Bylaws, as amended or otherwise altered to date, certified by theSecretary, which shall be open to inspection by members of the public and the Directors at allreasonable times during office hours.Section 5.3. Annual Report. The Corporation, having no members, hereby expresslydispenses with the annual report referred to in Section 6321 of the Law.Section 5.4. Fiscal Year. The fiscal year of the Corporation shall begin July 1 of eachyear and end on the last day of June of the succeeding year.Section 5.5. Dissolution. In the event of dissolution of the Corporation in any manner andfor any cause, after the payment or adequate provision for the payment of all of its debts andliabilities, all of the remaining funds, assets and properties of the Corporation shall be paid ordistributed to the District.Section 5.6. Construction and Definitions. Unless the context otherwise requires, thegeneral provisions, rules of construction and definitions contained in the Law shall govern theconstruction of these Bylaws. If any section, subsection, sentence, clause or phrase of these Bylaws,or the application thereof, is contrary to the Law, the provisions of the Law shall prevail. Withoutlimiting the generality of the foregoing the masculine gender includes the feminine and neuter, thesingular number includes the plural and the plural number includes the singular, and the term“person” includes a corporation as well as a natural person.ARTICLE VIAmendmentsSection 6.1. Power of Directors. New Bylaws may be adopted or these Bylaws may beamended or repealed by majority vote of the Board of Directors. No amendment to these Bylawsshall be effective until approved by majority vote of the Board of Directors.Section 6.2. Amended and Restated. These Amended and Restated Bylaws shall amendand restate the existing Bylaws of the Corporation dated June 8, 1978, as amended by AmendmentNo. 1 thereto approved on December 11, 2000, in their entirety.DOCSOC/1438386v2/022022-00005

CERTIFICATE OF SECRETARY OFMUNICIPAL WATER DISTRICT OF ORANGE COUNTY WATER FACILITIESCORPORATIONI hereby certify that I am the duly elected and acting Secretary of said Corporation and thatthe foregoing Amended and Restated Bylaws, comprising 5 pages, constitute the Bylaws of saidCorporation as duly adopted at a meeting of the Board of Directors thereof held on ________ __,2010.______________, SecretaryDOCSOC/1438386v2/022022-0000

MINUTES OF THE WORKSHOP BOARD MEETINGOF THE BOARD OF DIRECTORS OFMUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC)WITH THE MWDOC MET DIRECTORSSeptember 1, 2010At 8:30 a.m., President Finnegan called to order the Workshop Board Meeting of the Board ofDirectors of Municipal Water District of Orange County (MWDOC) at the District facilitieslocated in Fountain Valley. Director Foley led the Pledge of Allegiance and Secretary Goldsbycalled the roll.MWDOC DIRECTORSBrett R. Barbre*Wayne A. ClarkLarry Dick*Joan FinneganSusan Hinman (via teleconference)Ed Royce, Sr.Jeffery M. Thomas (absent)MWDOC STAFFKevin Hunt, General ManagerKarl Seckel, Assistant General ManagerMaribeth Goldsby, SecretaryRuss Behrens, Legal CounselHarvey De La Torre, Principal AnalystWarren Greco, Water Resource AnalystDarcy Burke, Dir. of Public Affairs*Also MWDOC Met DirectorsOTHER MWDOC MET DIRECTORSJack FoleyLinda AckermanOTHERS PRESENTRobert HanfordDiana LeachPeer SwanSteve LaMarPaul JonesBob MooreDick DietmeierRichard GardnerMike DunbarRay MillerWilliam KahnMichael HurleyJohn KennedyMike MarkusTrudy Ohlig-HallPaul ShoenbergerJim FislerBob HillJeff KightlingerDon ChaddLisa OhlundKen VecchiarelliJulia VelezGolden State Water CompanyConsultant to Golden State Water CompanyIrvine Ranch Water DistrictIrvine Ranch Water DistrictIrvine Ranch Water DistrictSouth Coast Water DistrictSouth Coast Water DistrictSouth Coast Water DistrictSouth Coast Water DistrictCity of San Juan CapistranoEl Toro Water DistrictMalcolm PirnieOrange County Water DistrictOrange County Water DistrictMesa Consolidated Water DistrictMesa Consolidated Water DistrictMesa Consolidated Water DistrictEl Toro Water DistrictMetropolitan Water District of So. Calif.Trabuco Canyon Water DistrictEast Orange County Water DistrictYorba Linda Water DistrictSan Diego County Water AuthorityPage 1 of 4

Minutes September 1, 2010TELECONFERENCE SITEPresident Finnegan announced that Director Hinman would be participating via telephoneconference from Rollins, Montana. (All agenda requirements pursuant to the Ralph M. BrownAct were complied with.)ITEMS RECEIVED TOO LATE TO BE AGENDIZEDDetermine need and take action to agendize item(s), which arose subsequent to the posting ofthe Agenda. (ROLL CALL VOTE: Adoption of this recommendation requires a two-thirds voteof the Board members present or, if less than two-thirds of the Board members are present, aunanimous vote.)No items were presented.PUBLIC PARTICIPATION/PUBLIC COMMENTSPresident Finnegan announced members of the public wishing to comment on agenda itemscould do so after the item has been discussed by the Board and requested members of thepublic identify themselves when called on. Ms. Finnegan asked whether there were anycomments on other items which would also be heard at this time.No comments were made.ACTION ITEMLETTER OF SUPPORT FOR METROPOLITAN’S 2010 INTEGRATED RESOURCESPLANPrincipal Analyst Harvey De La Torre advised that staff has reviewed the 2010 IRP draft reportand finds that it represents a comprehensive and responsible approach to meeting futurewater demands for the region in light of many uncertainties and risks. He recommended theBoard authorize the President to sign a letter to MET supporting key principles of the 2010 IRPupdate.Mr. William Kahn (El Toro Water District) referenced a letter that San Diego County WaterAuthority wrote requesting additional time for review and comment on the IRP, and inquired asto whether the letter held merit. Considerable discussion ensued regarding the IRP processand the status of the final document.Director Dick commented that he was reluctant to approve a letter supporting the documentprior to receiving/reviewing it in final form; he suggested this item be deferred until after theSeptember 17, 2010 IRP workshop at MET. Discussion ensued regarding this issue.General Manager Hunt advised that the letter simply expresses support for the principals ofthe document and does not prohibit the Board from any further comments on the IRP.Following discussion, and upon MOTION by Director Clark, seconded by Director Hinman,and carried (4-2), the Board authorized the President to sign a letter to Metropolitan WaterDistrict of Southern California supporting the 2010 Integrated Resources Plan (IRP) update.Page 2 of 4

Minutes September 1, 2010Directors Barbre and Dick voted no, with Director Dick stating that not sending the letter allowsmore room for negotiation if the IRP document significantly changes from its current form.Mr. Hunt stated that he would prefer to send a letter to the MET Board that has the backing ofthe entire MWDOC Board.Mr. Paul Jones (Irvine Ranch Water District General Manager) commented he understood theMWDOC Board desired to reserve the right for final comment on the IRP, therefore, hesuggested modifying the recommended letter to mirror the staff report that clearly statessupport for the IRP principles. He further suggested the letter contain language that allows theBoard to submit additional comments in the event the document changes.As a result of Mr. Jones’ comments, Director Clark submitted an additional MOTION toauthorize the President to sign a letter to MET supporting the basic elements of the 2010 IRPupdate, however reserving the right to make further comment. This MOTION was secondedby Director Royce, and carried by 6-0 vote.UPDATE ON BAY-DELTA ISSUESMr. De La Torre introduced MET General Manager, Jeff Kightlinger, to all present, noting Mr.Kightlinger would provide an update on Bay Delta issues.Mr. Kightlinger provided an overview of both the long and short-term approaches for “fixing”the Delta. Among the long-term approaches, he advised that the preferred option was theconveyance project and that no fatal flaws had been identified (yet). He advised that currentcost estimates of the conveyance range from $9-12 billion and the draft EIR/EIS should beavailable by spring 2011(which would be followed by a one-year for public comment period).Mr. Kightlinger then provided updates on the near term proposals (e.g. the Two Gates projectand the science associated with turbidity).Considerable discussion ensued regarding the Delta, its importance, the length of time tocomplete a conveyance project (10 years), and the overall science and environmental issuesfacing the Delta. The Board also discussed the need for educating the public on theimportance of a Delta “fix.”Responding to an inquiry from OCWD General Manager, Mike Markus, regarding theavailability of replenishment water, Mr. Kightlinger provided a brief update on the status ofMET’s storage and current supply conditions, noting that in the event there is excess water,MET would first look to refill its reservoirs (prior to offering any type of replenishment water ata discounted rate).The Board received and filed the report and thanked Mr. Kightlinger for attending the meeting.MET’S ADOPTED BUDGET AND RATES FOR FY 2011/2012Mr. De La Torre provided a brief update on MET’s adopted budget and rates for fiscal year2011/2012, noting that in April, the MET Board decided to move forward on adopting a twoyearbudget and rates. He advised that the belief was a two-year budget cycle would providemore predictability and consistency in planning MET’s finances. He noted that a completestaff report was included in the packet and he was available to answer any questions.Page 3 of 4

Minutes September 1, 2010MWD ITEMS CRITICAL TO ORANGE COUNTYa. MWD’s Water Supply Allocation Planb. Integrated Resource Plan 2010 Updatec. Long Range Finance Plan – Cost of Service Reviewd. Colorado River Issuese. Bay Delta/State Water Project Issuesf. MET’s Ocean Desalination Policy and Potential Participation by MET in theSouth Orange Coastal Ocean Desalination Project (formerly Dana PointDesalination Project)g. IRWD Strand Ranch Water Transfer & MET’s Policy on State Water ProjectTransfersh. Orange County Reliability ProjectsAs Mr. Kightlinger was present, Director Barbre suggested MET review MWDOC’s request toexpand the OC-51 service connection (and the associated costs).The Board received and filed the report.METROPOLITAN (MET) BOARD AND COMMITTEE AGENDA DISCUSSION ITEMSa. Summary regarding August MET Board MeetingThe Board received and filed the information.b. Review items of significance for the September MET Board andCommittee AgendasThe Board received and filed the information.ADJOURNMENTThere being no further business to come before the Board, the meeting adjourned at 10:10a.m.APPROVED:_____________________________Joan C. Finnegan, President_____________________________Maribeth Goldsby, Board SecretaryPage 4 of 4

MINUTES OF THE REGULAR MEETINGOF THE BOARD OF DIRECTORSMUNICIPAL WATER DISTRICT OF ORANGE COUNTYSeptember 15, 2010At 8:30 a.m. Vice President Thomas called to order the Regular Meeting of theMunicipal Water District of Orange County in the Board Room at the District facilitieslocated in Fountain Valley. Director Royce led the Pledge of Allegiance and SecretaryGoldsby called the roll.MWDOC DIRECTORSBrett R. BarbreWayne A. ClarkLarry DickJoan C. Finnegan (absent)Susan HinmanEd Royce, Sr.Jeffery M. ThomasSTAFFKevin Hunt, General ManagerKarl Seckel, Assistant Gen. Mgr.Russ Behrens, Legal CounselMaribeth Goldsby, Board SecretaryHarvey De La Torre, Prin. Water Res. PlannerDavid Cordero, Dir. of Governmental AffairsDarcy Burke, Dir. of Public AffairsWarren Greco, Water Resources AnalystALSO PRESENTDick DietmeierBob MooreMike DunbarRobert HanfordDiana LeachSteve LaMarTrudy Ohlig-HallBob McVickerMichael WolfeDon ChaddSouth Coast Water DistrictSouth Coast Water DistrictSouth Coast Water DistrictGolden State Water CompanyConsultant to Golden State Water CompanyIrvine Ranch Water DistrictMesa Consolidated Water DistrictMesa Consolidated Water DistrictCity of OrangeTrabuco Canyon Water DistrictPUBLIC PARTICIPATION/PUBLIC COMMENTVice President Thomas announced members of the public wishing to comment onagenda items could do so after the item has been discussed by the Board andrequested members of the public identify themselves when called on. Mr. Thomasasked whether there were any comments on other items which would be heard at thistime.No comments were made.

Minutes September 15, 2010COMMITTEE MEETING REPORTSThe following Committee Meeting reports were received and filed as presented.Administration & Finance Committee Meeting: August 11, 2010Public Affairs & Legislation Committee Meeting: August 9, 2010Executive Committee Meeting: August 19, 2010MWDOC/OCWD Joint Planning Committee Meeting: August 25, 2010TREASURER'S REPORTSThe following items were ratified as presented.MWDOC Revenue/Cash Receipt Register as of August 31, 2010MWDOC Disbursement Register as of August 31, 2010The following items were received and filed as presented.MWDOC Summary of Cash and Investment and Portfolio Master SummaryReport (Cash and Investment report) as of July 31, 2010Water Use Efficiency Projects Cash FlowDISTRICT CONFERENCES/SEMINARSThe Board authorized attendance by Directors and such members of District staff asapproved by the General Manager, at the following conferences/seminars:• ACWA Region 10 Fall Program and Tour, September 30, 2010,Cucamonga Valley Water District• California Special Districts Association, September 23-30, 2010, NewportBeach• Southern California Water Committee Annual Meeting & Dinner, October7, 2010, City of Industry• WaterSmart Innovations Conference and Expo, October 7-9, 2010, LasVegas, NV• ACWA Continuing Legal Education for Water Professionals, September30-October 1, 2010, San FranciscoEND CONSENT CALENDAR3

Minutes September 15, 2010ACTION CALENDAREVALUATION OF THREE MWDOC LANDSCAPE WATER USE EFFICIENCYPROJECTSDirector Dick commented that the Planning & Operations Committee held a lengthydiscussion on this item and concurred with the staff recommendation to approve it,however he believed the Committee also recommended a process for a Request forQualifications (RFQ) be included in these types of proposals. General Manager Huntadvised that staff would develop a policy to possibly include RFQs (or somethingsimilar) and present the information to the Committee for further discussion and/orconsideration.Upon MOTION by Director Clark, seconded by Director Royce, and carried (6-0), theBoard (1) authorized the General Manager to enter into a professional servicesagreement with A&N Technical Services, Inc. in the amount of $201,260 for theevaluation of three MWDOC Landscape Water Use Efficiency Projects; and (2)authorized use of budgeted funds in the amount of $71,260 ($34,068 in FY 10-11 and$37,192 in FY 11-12) as MWDOC’s share of evaluation costs, which will be matchedwith $130,000 from state and federal grant sources.WORKSHOPS ON PROJECT DELIVERY OPTIONS FOR SOUTH ORANGECOASTAL OCEAN DESALINATION PROJECTAssistant Manager, Karl Seckel advised that the Project Participants voted 3-2 toproceed with the proposed work (which is before the Board for consideration), notingthat two of the Project Participants felt that conducting the work at this time waspremature (although they were not opposed to conducting the work at a later date). Mr.Seckel also advised that this work will be funded out of the Phase 3 STAG grant (notout of MWDOC’s general budget).Director Dick requested staff develop a portfolio on this project (to include historicalinformation on how the project began, its status to date, and the direction the project isheaded -- including financial information relative to total project cost to date andanticipated future funding).Director Thomas suggested staff develop a written schedule for the Project in an effortto provide the Board an idea as to the timelines for completion (as well as potentialhurdles). He suggested that Legal Counsel conduct an analysis of whether a JointPowers Authority would be the appropriate funding mechanism for this project. It wasnoted that this issue will be presented to the Executive Committee for furtherdiscussion.Upon MOTION by Director Clark, seconded by Director Royce, and carried (6-0), theBoard (1) authorized the General Manager to enter into a contract with Malcolm Pirnie,4

Minutes September 15, 2010on a lump sum basis to conduct the workshops and additional work as outlined, at acost of $42,000 to be paid out of the South Orange Coastal Ocean Desalination ProjectParticipant’s budget (who concurred with the awards at their August 23 meeting.OFFSHORE HYDROGEOLOGY INVESTIGATIONS AND ADDITIONALSOURCE WATER QUALITY MONITORING FOR SOUTH ORANGE COASTALOCEAN DESALINATION PROJECTMr. Seckel advised that this item was reviewed and recommended for approval by thePlanning & Operations Committee.South Coast Water District Director Dietmeier advised that the Project Participants fullysupport the proposal.Upon MOTION by Director Barbre, seconded by Director Hinman, and carried (6-0), theBoard Authorize the General Manager to enter into the following contracts, at anestimated cost of $284,195 for offshore hydrogeology investigations and additionalsource water quality monitoring, to be paid out of the South Orange Coastal OceanDesalination Project Participant’s budget (they concurred with these awards at theirAugust 23 meeting; the funds are budgeted within the Phase 3 work or the STAG GrantBudget amount):1. Tracer Study in the amount of $51,201 to DBA Coastal GroundwaterConsulting;2. Seafloor Sediment Coring Services, initial task, to EcoSystems ManagementAssociates, Inc. in the amount of $34,370;3. Chambers Group for permitting support in the amount of $5,000;4. Geoscience Support Services for sediment core testing for determination ofseafloor vertical hydraulic conductivity in the amount of $59,795;5. Procurement of aerial photography and topographic mapping in the amount of$6,000;6. Retain one of the three qualified firms who submitted proposals for offshoregeophysics and deep sediment coring for scoping, development of a detailedwork statement and estimated budget for the offshore deep sediment coringnot to exceed $20,000;7. Provide a small contingency.Subtotal hydrogeology work = $183,000; and8. Additional Source Water Quality Testing to Separation Processes, Inc., ourPhase 3 contractor (SPI) in the amount of $101,195.Total amount of both awards = $284,195.5

Minutes September 15, 2010DESIGNATION OF VOTING REPRESENTATIVES FOR ISDOC EXECUTIVECOMMITTEE ELECTIONGeneral Manager Hunt advised that the proposal to designate a voting representativefor the ISDOC Executive Committee election was before the Board for consideration.Director Dick suggested that due to President Finnegan’s involvement in ISDOC, she beappointed to cast the District’s ballot at her discretion.Responding to an inquiry by Director Barbre, David Cordero (Director of GovernmentalAffairs) clarified that the election would solely consist of voting for ISDOC’s ExecutiveCommittee representatives; no Bylaw amendments would be presented forconsideration.Upon MOTION by Director Barbre, seconded by Director Royce, and carried (6-0), theBoard appointed Joan C. Finnegan as primary voting representative and Ed Royce, Sr.as alternate voting representative to vote in the ISDOC Executive Committee electionon Thursday, September 30, 2010.RESOLUTION COMMEMORATING THE FIFTIETH ANNIVERSARY OF MESACONSOLIDATED WATER DISTRICTUpon MOTION by Director Hinman, seconded by Director Barbre, and carried (6-0), theBoard adopted RESOLUTION NO. 1890, Commemorating the Fiftieth Anniversary ofMesa Consolidated Water District, by the following roll call vote:AYES:NOES:ABSENT:ABSTAIN:Directors Barbre, Clark, Dick, Hinman, Royce & ThomasNoneDirector FinneganNonePROPOSED LETTER OF SUPPORT FOR GOVERNMENT REFORM ANDTRANSPARENCY LEGISLATION (AB 194, AB 827)Director of Governmental Affairs, David Cordero, provided an overview of AB 194(Torrico) and AB 827 (De La Torre), advising that both bills address government reformmeasures as a result of the recent City of Bell salary scandal. He requested that theBoard authorize a letter of support for this legislation be sent to the Governor.Director Barbre commented that he is supportive of the major components of AB 827such as no automatic contract renewals, compensation increases, raises greater thanCOLA, and severances longer than 12 months. He was reluctant to support the bill,however, because it applies only to employees who report directly to a public agency’sgoverning body. Other high level management positions and non-exempt employeescould automatically receive those increases in salary and benefits and this is where thebill fails to address the overall problem. Director Barbre also expressed general6

Minutes September 15, 2010displeasure with the rationale behind AB 194. He advised that he would prefer todiscuss both pieces of legislation at the next Public Affairs & Legislation Committeemeeting rather than rush to support legislation that was not fully understood or thoughtout. Directors Dick and Thomas concurred.Following discussion, and upon MOTION by Director Barbre, seconded by DirectorClark, and carried (6-0), this item was referred to the Public Affairs & LegislationCommittee for further discussion.INFORMATION CALENDARGENERAL MANAGER'S REPORT, AUGUST 2010General Manager Hunt advised that the General Manager’s report was included in theBoard packet.Mr. Hunt responded to several inquiries by Director Barbre, including status updates onthe following:• Discussions between MET and YLWD regarding the enlargement of OC-51;• A meeting with Susan Trager to discuss the potential use of Beaumont-CherryValley Basin water• The IRWD/Strand Ranch project (to be presented to the Planning & OperationsCommittee in the future).• The Urban Water Management Plan participants• Service Connection Improvements (and why the flow signals are helpful)• The Diamond Valley Lake Inspection trips (with staff advising that as soon as thetrips are released, the MET Directors will be contacted); and• An overview of the coordination with Golden State Water Company on atelevision segment (City Works on water conservation and water use efficiency).Director Barbre highlighted the fact that Director Dick was elected to serve on the UrbanWater Institute Board of Directors.Director Dick highlighted Jessica Hanley’s planning efforts with MWDOC’s Interns (toestablish projects and goals for each) and he requested staff distribute a copy of theresults of her efforts to the Board.Director Hinman referenced the MET inspection trips and requested that she be notifiedif people from Division 7 are attending the trips. Discussion ensued regarding theEnvironmental Mitigation trip recently conducted by MET. Director Barbre highlightedthe reason for the Environmental Mitigation trip (noting that educating the public on thecosts of mitigation projects is key).Upon MOTION by Director Royce, seconded by Director Barbre, and carried (6-0), theBoard received and filed the report as presented.7

Minutes September 15, 2010MWDOC GENERAL INFORMATION ITEMSBOARD OF DIRECTORSIn addition to the regular MWDOC Board and Committee meetings attended by theDirectors, the following reports were made on conferences and meetings attended onbehalf of the District.Director Barbre reported on his MET activities including his attendance at the METBoard and Committee meetings, as well as his participation at meetings supportingPoseidon Resources and desalination (both at the Huntington Beach and Yorba LindaCity Council meetings). He advised that he would be working with agencies within hisdivision in support of Poseidon’s efforts.Director Hinman reported on attending a meeting with Steve Hedges to discuss waterquality activity in the Prima Descheca Watershed (Poche Beach Watershed); the SouthCoast Water District Public Hearing, and the Moulton Niguel Water District EngineeringCommittee meeting.Director Dick reported on various meetings with representatives from member agencies,the WACO meeting, the Urban Water Institute conference, and MET activities. Hehighlighted an upcoming event (October 27-28) MET would be hosting withrepresentatives from Israel regarding nitrate removal, and he encouraged attendance.Director Clark advised that he attended the Urban Water Institute conference, and theACWA Federal Affairs Committee meeting.Director Royce stated that he attended the Orange County Business CouncilInfrastructure Committee meeting, the ISDOC Executive Committee meeting, theHuntington Beach City Council meeting featuring Poseidon Resources, a Chamber ofCommerce meeting, and the WACO meeting.Director Thomas advised that he attended the Santa Margarita Water District Boardmeeting, as well as various meetings regarding the member agency relations(settlement negotiations).Director Thomas announced that the Board would hold a Special Board Workshopregarding the District’s Strategic Goals on Saturday, September 18, 2010.CLOSED SESSIONAt 9:30 a.m., Legal Counsel Behrens announced that the Board would adjourn to closedsession for the following:8

Minutes September 15, 20101. Conference with Legal Counsel – Anticipated LitigationPursuant to Government Code Section 54956.9(c) (two cases); and2. Conference with Legal Counsel – Existing LitigationPursuant to Government Code Section 54956.9(a)Title: San Diego County Water Authority v. Metropolitan Water District ofSouthern California; all persons interested in the validity of the ratesadopted by the Metropolitan Water District of Southern California on April13, 2010 et al, Los Angeles Superior Court, Case No. BS 126888RECONVENEThe Board reconvened at 11:25 a.m., and Legal Counsel Behrens reported:1. The Board authorized staff to distribute the Settlement Agreement(regarding member agency relations) to MWDOC’s member agencies.Said authorization was based on a 4-2 vote, with Directors Barbre andDick in opposition.2. No reportable action was taken on the existing litigation between MET andSan Diego County Water Authority.ADJOURNMENTThere being no further business to come before the Board, Vice President Thomasadjourned the meeting at 11:28 a.m.APPROVED_____________________________Joan C. Finnegan, President_______________________________Maribeth Goldsby, Secretary9

MINUTES OF THE SPECIAL MEETINGOF THE BOARD OF DIRECTORSMUNICIPAL WATER DISTRICT OF ORANGE COUNTYSeptember 18, 2010At 9:00 a.m. President Finnegan called to order a Special Meeting of the MunicipalWater District of Orange County in the Board Room at the District facilities located inFountain Valley. President Finnegan led the Pledge of Allegiance and SecretaryGoldsby called the roll.MWDOC DIRECTORSBrett R. BarbreWayne A. ClarkLarry DickJoan C. FinneganSusan HinmanEd Royce, Sr.Jeffery M. ThomasSTAFFKevin Hunt, General ManagerKarl Seckel, Assistant Gen. Mgr.Russ Behrens, Legal CounselMaribeth Goldsby, Board SecretaryPhil Letrong, Finance ManagerHarvey De La Torre, Principal AnalystCathy Harris, Admin. Service ManagerJoe Berg, Water Use Efficiency Prog. ManagerDarcy Burke, Dir. of Public AffairsDavid Cordero, Dir. of Governmental AffairsALSO PRESENTLinda AckermanEd MeansBob MooreDick DietmeierRichard GardnerMike DunbarLinda HomscheidDiana LeachSean FitzgeraldChris TownsendTrudy Ohlig-HallMegan YooMWDOC MET DirectorMalcolm PirnieSouth Coast Water DistrictSouth Coast Water DistrictSouth Coast Water DistrictSouth Coast Water DistrictSouth Coast Water DistrictConsultant to Golden State Water CompanyTownsend Public AffairsTownsend Public AffairsMesa Consolidated Water DistrictResidentSTRATEGIC GOALS WORKSHOPMr. Ed Means of Malcolm Pirnie facilitated the meeting to review the goal statementsdeveloped by the Board at the previous meetings (June 12 and August 18, 2010). Hereviewed several strategies to implement each goal statements and considerablediscussion was held on each strategy. The following outlines each of the goalstatements and well as the strategies to assist with those goal statements (asdeveloped by the Board during the meeting):

Minutes September 18, 2010GOAL 1MWDOC will provide leadership and advocacy on Regional andOrange County water issues at METStrategies• Work with key stakeholders to define Orange County priorities• Position MWDOC MET Directors and MWDOC Directors to be fluent andstrategic on the OC priorities and regional water issues• Form coalitions to address OC objectives• Maintain interdependent and collaborative relationships with MET StaffGOAL 2MWDOC will advocate for water programs and policies that seek todevelop sustainable, reliable and high quality water supplies for itsservice areaStrategies• Maximize development of local sustainable OC water resources• Implement water use efficiency to improve supply reliability• Work with member agencies to increase OC’s water supply from non-localsources• Ensure the effectiveness of the WEROCGOAL 3MWDOC will be a prudent manager of the financial resources, assets,human talent, and rate setting authority entrusted to it and pursuefunding opportunities for the service area• Ensure financial activities are accurate and transparent• Use technology to drive efficiency• Manage District budget and assets to efficiently achieve the District’s priorities• Attract and retain a high-quality efficient workforce to achieve the strategic reviewgoalsGOAL 4MWDOC will engage and understand the communities it serves tomeet their water needs and ensure that these communitiesunderstand the water challenges faced by the region• Strengthen relations with member agencies• Support the Board of Directors to facilitate informed policy/decision making• Develop effective community outreach• Ensure that MWDOC’s local, state, and federal officials understand OC waterissues• Engage local, state, and federal regulators on regulations affecting OC water• Ensure all MWDOC staff are informed on District priorities and activities2

Minutes September 18, 2010Mr. Means advised that he anticipates to present the Final document to the Board forapproval in October and that he will develop a scorecard by the end of November andwill report on the Board’s progress with respect to each Goal Statement in March 2011.On behalf of the Board, President Finnegan thanked Mr. Means for the informationpresented.ADJOURNMENTAt 11:55 a.m., President Finnegan adjourned the special meeting.APPROVED_____________________________Joan C. Finnegan, President_______________________________Maribeth Goldsby, Secretary3

MINUTES OF THE MEETING OF THEBOARD OF DIRECTORS OF THEMUNICIPAL WATER DISTRICT OF ORANGE COUNTYjointly with theEXECUTIVE COMMITTEESeptember 16, 2010, 8:30 a.m. to 9:55 a.m.Conference Room 102Committee:Director Finnegan, President (absent)Director Thomas, Vice PresidentDirector Clark, Immediate Past PresidentStaff:K. Hunt, M. GoldsbyAlso Present:Director HinmanDirector BarbreDirector DickDick Dietmeier (South Coast WD)PUBLIC PARTICIPATIONNo comments were received.ITEMS RECEIVED TOO LATE TO BE AGENDIZEDNo items were presented.ITEMS DISTRIBUTED TO THE BOARD LESS THAN 72 HOURS PRIOR TO MEETINGNo items were presented.DISCUSSION REGARDING UPCOMING ACTIVITIES OF SIGNIFICANCEDirector Thomas advised that the Orange County Water District Board approvedparticipation in the 2011 Orange County Water Summit, noting they will most likely executean agreement with Disney (location). The Committee discussed ways for improving theevent and possibly reducing costs. Mr. Thomas (along with staff) will continue to apprisethe Board as the event is planned.The Committee then discussed the agenda for the September 18, 2010 Workshopregarding Strategic Goals.Director Clark commented on his participation on the ACWA Federal Affairs Committee,with particular emphasis on the ACWA Blueprint, and the fact that more needs to be done tostreamline the regulatory (permitting) process for projects such as the South Orange CountyDesalination Project. He suggested MWDOC organize a workshop on this subject; theCommittee agreed, suggesting the workshop be held in late February. The Committee heldconsiderable discussion on the regulatory process, the environmental hurdles, the CEQArequirements, and partnering with San Diego County Water Authority in this effort. The1

Executive Committee Minutes September 16, 2010Committee suggested possible speakers for the event (such as Paul Shoenberger andDarryl Miller) and General Manager Hunt advised that he would seek input for workshopideas, as well as confer with ACWA regarding their plans for addressing this issue.MEMBER AGENCY RELATIONSThe Committee discussed the terms of the latest draft of the Settlement Agreement, as wellas provisions relative to the MET Directors.Director Hinman requested staff develop an outline, or chronology of events from thebeginning of the North/South discussions (back in December 2006).Director Dick requested staff provide a one-page list of talking points regarding the SecondLower Cross Feeder.EXECUTIVE COMMITTEE PROPOSALS FOR FUTURE AGENDASa. Workshop Board Meetingb. Planning & Operations CommitteeCommittee requested an update on the Second Lower Cross Feeder.c. Administration & Finance CommitteeCommittee discussed the District’s vacation policy and how it is implemented; they believedthat it would be prudent to develop a policy requiring certain personnel to take annualvacations. Mr. Thomas noted that financial institutions require those individuals responsiblefor finance to take annual vacations; staff was directed to conduct research on how otheragencies and/or financial institutions handle this issue and report back to Committee.Committee briefly discussed the recent Administration & Finance Committee’s workshop onpension issues and options to follow up on the information presented.d. Public Affairs & Legislation CommitteeCommittee addressed the Conservation Plan (as it relates to a “Delta fix”) and suggestedarranging educational workshops for the public. Staff was directed to work with MET staff topossibly include a series in the District’s E-Currents newsletter on this subject.Director Clark requested an update on the Two-Gates project be made at an upcomingCommittee meeting.e. MWDOC/OCWD Joint Planning CommitteeNo new information was presented.2

Executive Committee Minutes September 16, 2010GENERAL MANAGER’S ACTIVITIESMr. Hunt advised that he would be vacationing late October/early November.REVIEW AND DISCUSS DISTRICT AND BOARD ACTIVITIESNo new information was presented.ADJOURNMENTThere being no further business to be brought before the Committee, the meeting adjournedat 9:55 a.m.3

MEETING REPORTAGENDAJOINT PLANNING COMMITTEEWITH BOARD OF DIRECTORS*MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ANDORANGE COUNTY WATER DISTRICTSeptember 22, 2010, 8:30 A.M.1. GWRS FY09-10 Gross and Net Unit costMr. Bill Hunt (OCWD’s Executive Director of Operations) provided an overviewof the GWRS fiscal year 2009/2010 gross and net unit cost, noting that the netcost was $478 per acre foot and the gross cost of water equates to $887 peracre foot. He noted that OCWD receives three subsidies for the project, whichinclude (1) funding through MET’s Local Resources Program; (2) DemandResponse Credit; and (3) Orange County Sanitation District’s share of thetreatment cost.2. MWDOC Member Agency settlement agreementMr. Kevin Hunt provided an overview of the settlement agreement betweenMWDOC and its Member Agencies, noting that the agreement requiresapproval by two-thirds of MWDOC’s Member Agencies. He advised that hehopes to receive approval by the end of the year. Directors Dick, Barbre,Thomas, and IRWD Director Peer Swan commented on Mr. Hunt’spresentation.3. Concept to seek MWD LRP funding for GWRS Expansion projectMr. Mike Markus advised that preliminary discussions were underway withMET staff regarding possibly funding the GRWS Expansion project throughMET’s Local Resources Program.4. May 2011 Orange County Water SummitMs. Darcy Burke provided an overview of the planning process for the OCWater Summit IV to be held in May 2011, including the goals and objectives ofSummit. Considerable discussion ensued regarding ways to improve theevent, the need to include the non-water community, and the issue of a “zerobudget” allocated to plan the event. It was noted that the ad hoc committeewould meet and discuss all of these issues and report back to the Boards.5. Requested Agenda items for October 27, 2010 meeting• Update on MWDOC Member Agency settlement agreement• Update on conservation/allocations• Update on decreased flow in Santa Ana River (impacts)• Update regarding the Second Lower Cross FeederAdjournment: 9:40 a.m.

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121787 9/10/2010 V10004 ACWA083110 2010 ACWA Centennial sponsorship 500.00***Total *** 500.00121788 9/10/2010 V10043 Brett BarbreAUG2010 August 2010 MET Director compensation 2,216.20***Total *** 2,216.20121789 9/10/2010 V10207 James C. Barker, P.C.105‐0710 July 2010 Federal legislative advocacy services 8,000.00***Total *** 8,000.00121790 9/10/2010 V10221 Joe Berg083110 August 2010 business expense 236.51***Total *** 236.51121791 9/10/2010 V10492 Rajan Brown082510 August 2010 business expense 85.00***Total *** 85.00121792 9/10/2010 V10499 Tiffany Bui073110 July 2010 business expense 45.22***Total *** 45.22121793 9/10/2010 V10139 Elizabeth Clatfelter073110 July 2010 business expense 42.50***Total *** 42.50121794 9/10/2010 V10103 Crystal Boteler073110A July 2010 business expense 83.08***Total *** 83.08Page 1

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121795 9/10/2010 V10054 California Special Districts Assn25836 Annual conference sponsorship 250.00***Total *** 250.00121796 9/10/2010 V10231 Katie Davanaugh083110 August 2010 business expense 46.36***Total *** 46.36121797 9/10/2010 V10243 Larry DickAUG2010 August 2010 MET Director compensation 2,216.20***Total *** 2,216.20121798 9/10/2010 V10244 Larry DickAUG2010 August 2010 business expense 72.00***Total *** 72.00121799 9/10/2010 V10147 Federal Express Corporation7‐181‐13891 13891 7/28 & 7/30 Delivery charges 76.74747‐188‐83464 8/4 & 8/5 Delivery charges 79.08***Total *** 155.82121800 9/10/2010 V10216 Joan Finnegan0831 August 2010 business expense 101.95***Total *** 101.95121801 9/10/2010 V10150 Foodcraft Coffee & Refreshment663865 7/13 Coffee/tea supplies 211.89***Total *** 211.89121802 9/10/2010 V10561 Fortech Software Consulting, Inc10905 Custom Web Based Landscape Database partial payment 14,500.00***Total *** 14,500.00Page 2

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121803 9/10/2010 V10252 Leah Frazier073110 July 2010 business expense 2.50083110 August 2010 business expense 8.00***Total *** 10.50121804 9/10/2010 V10214 Jessica Hanley083110 August 2010 business expense 293.44***Total *** 293.44121805 9/10/2010 V10407 Steve Hedges083110 August 2010 business expense 199.50***Total *** 199.50121806 9/10/2010 V10233 Kelly Hubbard091010 August ‐ September 2010 business expense 286.93***Total *** 286.93121807 9/10/2010 V10253 Lee Jacobi083110 August 2010 business expense 102.00***Total *** 102.00121808 9/10/2010 V10256 Lexis Nexis0371926 CA Deer 6/10 Government Subscription 322.93***Total *** 322.93121809 9/10/2010 V10257 Liebert Cassidy Whitmore119354 Legal Assistance for Human Resources 4,558.50***Total *** 4,558.50121810 9/10/2010 V10269 Malcolm Pirnie, Inc.100110960 Consulting services on Strategic Planning 8,452.50***Total *** 8,452.50Page 3

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121811 9/10/2010 V10330 Patricia Kennedy, Inc.2022 September 2010 Plant maintenance 214.00***Total *** 214.00121812 9/10/2010 V10377 Sergio Ramirez083110 August 2010 business expense 22.30***Total *** 22.30121813 9/10/2010 V10560 Robert C. Siemak002 Engineering consulting on Carlsbad and HB Desal 2,100.00***Total *** 2,100.00121814 9/10/2010 V10133 Ed Royce Sr.AUG2010 August 2010 business expense 150.00***Total *** 150.00121815 9/10/2010 V10360 Rutan & Tucker, LLP587378 July 2010 Legal fees for SOCWA settlement agreement 2,504.61***Total *** 2,504.61121816 9/10/2010 V10228 Karl Seckel083110 August 2010 business expense 156.51***Total *** 156.51121817 9/10/2010 V10375 Secova09‐307312310 September 2010 Health insurance for Director Royce 232.00***Total *** 232.00121818 9/10/2010 V10384 Silver‐Script090110 Setpember 2010 Prescription insurance for Director Royce 67.00***Total *** 67.00121819 9/10/2010 V10385 Silver‐Script090110 September 2010 Perscription insurance for Patricia Royce 67.00***Total *** 67.00Page 4

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121820 9/10/2010 V10413 Sympro05513 2010 Annual software support & maintenance 3,082.00***Total *** 3,082.00121821 9/10/2010 V10476 Jeffery Thomas083110 August 2010 business expense 244.73***Total *** 244.73121822 9/15/2010 V10023 AT&T8200‐AUG10 Credit for August 2010 N. EOC telephone expense ‐15.400532‐AUG10 August 2010 N. EOC Dedicated phone line 69.684492‐AUG10 August 2010 S. EOC telephone expense 192.52***Total *** 246.80121823 9/15/2010 V10031 Bank of America NA4118‐AUG10 August 2010 various credit card expenses 683.55(see attached sheet for details)***Total *** 683.55121824 9/15/2010 V10107 Darcy M. Burke083110 July‐August 2010 business expense 320.26***Total *** 320.26121825 9/15/2010 V10065 Chambers Group Inc.25243 Aug 2010 Environmental documentation services for Desal Project 7,019.05***Total *** 7,019.05121826 9/15/2010 V10121 Diehl, Evans & Company, LLC1023532 First interim billing for FY ending June 30, 2010 Audit Services 4,000.00***Total *** 4,000.00121827 9/15/2010 V10191 Ikon Office Solutions83132716 September 2010 Copier lease 753.99***Total *** 753.99Page 5

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121828 9/15/2010 V10192 Ikon Office Solutions5014823944 September 2010 Copier Maintenance 206.53***Total *** 206.53121829 9/15/2010 V10217 Jobs AvailableT18028 Accounting Technician job posting 385.00***Total *** 385.00121830 9/15/2010 V10257 Liebert Cassidy Whitmore120356 July 2010 Legal services for reviewing District's retention policy 2,983.50***Total *** 2,983.50121831 9/15/2010 V10325 Orange County Water District8838 Jul 2010 WACO 50% shared expense 178.758849 Aug 2010 Refund for water deliveries and SCP surcharge 74,638.93***Total *** 74,817.68121832 9/15/2010 V10313 Office SolutionsI‐00142442 8/20 Office supplies 1,475.36***Total *** 1,475.36121833 9/15/2010 V10512 Orange County Fast Print, Inc.43151 Business cards for Richard Bell and Sergio Ramirez 108.75***Total *** 108.75121834 9/15/2010 V10389 So. Cal. Water Committee100710 Annual meeting and dinner for K. Hunt and D. Burke 400.00***Total *** 400.00121835 9/15/2010 V10430 Top Hat Productions79592 8/12 Lunch for WUE workgroup meeting 403.0379772 9/2 Lunch for WUE workgroup meeting 409.55***Total *** 812.58Page 6

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121836 9/22/2010 V10262 Linda AckermanCRMJUL10 Reverse duplicate pmt for Jul 10 MET Director's compensation ‐1,994.58AUG2010 August 2010 MET Director's compensation 2,216.20***Total *** 221.62121837 9/22/2010 V10005 ACWA/Joint Powers Insurance Authority100110 FY10‐11 General Insurance 80,350.00***Total *** 80,350.00121838 9/22/2010 V10474 Aquaficient Consulting02‐012 Apr 2010 Meter enrollment for Landscape Perf. Cert. 1,500.0002‐013 May 2010 Meter enrollment for Landscape Perf. Cert. 1,500.0002‐014 June 2010 Meter enrollment for Landscape Perf. Cert 1,500.00***Total *** 4,500.00121839 9/22/2010 V10063 CDWG INCTMT6354 Acrobat Pro 9 software upgrade ‐ 5 users 461.50***Total *** 461.50121840 9/22/2010 V10149 Finley & Cook PLLCDTL‐405193 7/23 HR software training 1,155.00DTL‐208998 7/30 HR software training 521.04ITM‐013636 FY 10‐11 Document attachment software annual maintenance 434.00***Total *** 2,110.04121841 9/22/2010 V10219 John F. FoleyAUG10 August 2010 MET Director's compensation 1,108.10***Total *** 1,108.10121842 9/22/2010 V10237 Kevin Hunt082610 August 2010 business expense 476.23***Total *** 476.23121843 9/22/2010 V10201 Intuitech2010‐1867 Assembly of mobile test facility for Desal 41,971.00***Total *** 41,971.00Page 7

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121844 9/22/2010 V10563 Johnson & Turner Ptg. Co, Inc6229‐01 Purchase and install whiteboard wallcovering for EOC 19,047.00***Total *** 19,047.00121845 9/27/2010 V10530 34 North5‐MWDOCB Website phase 3‐4, Migration and launch completion 3,010.00***Total *** 3,010.00121846 9/27/2010 V10097 Corporate Payment Systems0810 August 2010 various credit card expenses 6,662.10(see attached sheet for details)***Total *** 6,662.10121847 9/27/2010 V10212 Jeff Stalvey091810 September 2010 business expense 120.50***Total *** 120.50121848 9/27/2010 V10570 The Westin South Coast PlazaDEPOSIT Deposit for 11/4/10 Policy dinner 1,500.00***Total *** 1,500.00121849 9/30/2010 V10535 ABG Marketing & Business2633278 OC Water Hero activity books 2,014.42***Total *** 2,014.42121850 9/30/2010 V10027 Automated Information Technology8825 Ink toner cartridges 453.11***Total *** 453.11121851 9/30/2010 V10537 Autumn Print Group666 MWDOC briefing paper template 631.84***Total *** 631.84Page 8

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121852 9/30/2010 V10207 James C. Barker, P.C.105‐0810 August 2010 Federal legislative advocacy services 8,000.00***Total *** 8,000.00121853 9/30/2010 V10492 Rajan Brown1 Develop perf. based irrig. contract template for Landscape Perf Cert. 1,861.50***Total *** 1,861.50121854 9/30/2010 V10061 Catalina Island Conservancy0004749 September 2010 Fee for WEROC radio repeater site 1,221.15***Total *** 1,221.15121855 9/30/2010 V10094 Conservision Consulting, LLCLPCP‐170 Apr 2010 Consulting services for Landscape Perf Cert. 5,742.00LPCP‐171 May 2010 Consulting services for Landscape Perf Cert. 5,775.75LPCP‐172 Jun 2010 Consulting services for Landscape Perf Cert. 6,894.00***Total *** 18,411.75121856 9/30/2010 V10101 CPS Human Resource ServicesSOP29144 Test materials for Accounting Technician position 971.75***Total *** 971.75121857 9/30/2010 V10147 Federal Express Corporation7‐196‐96439 8/20 Delivery charges 19.887‐204‐79211 8/27 Delivery charges 46.017‐212‐22189 8/27 Delivery charges 38.19***Total *** 104.08121858 9/30/2010 V10155 Fry's Electronics13952605 7/10 Computer components 141.0417325198 9/3 Computer Supplies 298.12***Total *** 439.16121859 9/30/2010 V10162 Geoscience Support Services1265‐09 July‐Aug 2010 RWQCB Desal Compliance Sampling 8,050.00***Total *** 8,050.00Page 9

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121860 9/30/2010 V10454 Warren Greco083110 August 2010 Business Expense 279.56***Total *** 279.56121861 9/30/2010 V10203 Iron MountainCJE8477 September 2010 Storage/retrieval of archived documents 508.81***Total *** 508.81121862 9/30/2010 V10194 Independent Special Districts of OC072910 Quarterly luncheon ‐ Cordero and Dir. Barbre, Finnegan, Royce, Thomas 80.00***Total *** 80.00121863 9/30/2010 V10251 League of CA Cities‐O.C. Div093010 9/30 Cal Green meeting ‐ Registration for Joe Berg 25.00***Total *** 25.00121864 9/30/2010 V10257 Liebert Cassidy Whitmore121565 August 2010 Legal services for reviewing District's retension Policy 1,977.00***Total *** 1,977.00121865 9/30/2010 V10564 Macias Gini & O'Connell LLP157791 Temporary staffing assistance in Finance Dept. 2,040.00***Total *** 2,040.00121866 9/30/2010 V10277 Peggy McClure5898 Consulting services for conservation database 1,863.75***Total *** 1,863.75121867 9/30/2010 V10281 Metropolitan Water District6748 July 2010 water deliveries 16,373,007.49***Total *** 16,373,007.49121868 9/30/2010 V10555 Michael Brandman Associates00050458 May 2010 Professional services for Desal Project 10,343.75***Total *** 10,343.75Page 10

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121869 9/30/2010 V10286 Mission Resource Conservation District1075 August 2010 Field verification for rebate programs 9,080.92***Total *** 9,080.92121870 9/30/2010 V10565 New Resources Group, Inc.8798 Shower timers for OC Water Hero program 6,998.25***Total *** 6,998.25121871 9/30/2010 V10297 Nextel Communications320982721‐073 September 2010 WEROC Cell Phone Expense 163.93***Total *** 163.93121872 9/30/2010 V10300 Norco Delivery Services142027 8/30 Delivery charges for board and committee packets 174.51151269 9/3 Delivery charges for board and committee packets 227.64***Total *** 402.15121873 9/30/2010 V10313 Office SolutionsI‐00147603 Desk drawer for Richard Bell 109.57I‐00146846 9/7 Office supplies 269.65***Total *** 379.22121874 9/30/2010 V10512 Orange County Fast Print, Inc.43270 Business cards for Ken Gryske 54.38***Total *** 54.38121875 9/30/2010 V10348 Public Storage091510 October 2010 Storage rent for unit E034 312.00***Total *** 312.00121876 9/30/2010 V10560 Robert C. Siemak003B Engineering and consulting work on Carlsbad & HB Desalination 3,568.00***Total *** 3,568.00Page 11

Municipal Water District of Orange CountySeptember 2010 Disbursements ReportVendor # Name / Net AmountCheck # Date Invoice/CM # Description121877 9/30/2010 V10389 So. Cal. Water Committee100710B Annual Board of Trustees meeting & dinner ‐ Director Clark and Hinman 400.00***Total *** 400.00121878 9/30/2010 V10538 Separation Processes, Inc5763 July 2010 Engineering services for Desal Project 38,788.48***Total *** 38,788.48121879 9/30/2010 V10366 Santa Margarita Water District073110 July 2010 SCP Operation surcharge 32,852.23***Total *** 32,852.23121880 9/30/2010 V10566 Spero Strategies, LLC09242010 Project management services for Water Use Reduction 3,250.00***Total *** 3,250.00121881 9/30/2010 V10396 SPS Data CommunicationsJUNE10 Building network re‐cabling ‐ deposit for materials 2,000.00***Total *** 2,000.00121882 9/30/2010 V10478 Time Warner Cable3564‐SEP10 September 2010 Telephone expense 219.123531‐SEP10 September 2010 Telephone expense 915.81***Total *** 1,134.93121883 9/30/2010 V10431 Townsend Public Affairs, Inc6533 August 2010 Federal Legislative Advocacy Services 2,500.006533B August 2010 State legislative advocacy services 7,500.00***Total *** 10,000.00Page 12

Municipal Water District of Orange CountyWATER USE EFFICIENCY PROJECTSCash Flow as of 09/30/10Jul 2010 Aug 2010 Sep 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 Jun 2011 TOTALSCash - Beginning Balance $ (291,575.34) $ 25,685.13 $ (331,694.49) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61)REVENUES:BUREC 184,406.60 775.09 $ 185,181.69City of Anaheim, Brea, Buena Park 1,391.70 1,391.70City of Fountain Valley, Fullerton 467.70 72.00 539.70City of Garden Grove, Huntington Beach 408.00 136.20 544.20City of La Palma, La Habra, Newport Bc 63.00 63.00City of Santa Ana, San Clemente 279.00 90.00 369.00City of San Juan Capistrano 144.00 361.50 220.50 726.00City of Tustin, Westminster 99.00 54.00 153.00City of Orange, DWR 4,558.50 4,558.50El Toro Water District -Golden State Water Company 1,659.67 72.00 1,731.67Irvine Ranch Water District 457,228.88 3,750.00 460,978.88Laguna Beach County Water District -Mesa Consolidated Water District 252.00 252.00Metropolitan Water District -Moulton Niguel Water District, NRCS 108.00 32,056.39 37,052.35 69,216.74MWDOC -Santa Margarita Water District 2,123.00 1,285.00 3,408.00Serrano Water District 522.00 522.00South Coast Water District 1,246.87 1,246.87State Water Resources Control Board -Yorba Linda Water District 54.00 54.00Trabuco Canyon Water District -Miscellaneous RevenuesInterest Revenue -Total Revenues 457,543.88 229,309.93 44,083.14 - - - - - - - - - $ 730,936.95EXPENDITURES:Aquaficient, ABG Mrktg, Bryton Printing 3,363.22 4,500.00 $ 7,863.22Conservision Consulting, LLC 18,411.75 18,411.75Digital Map Products -Electric Gas Industries Assoc., Fortech 11,600.00 11,600.00Federal Express, Glen's Landscaping -GHD, Inc, James Klein & Assoc -Malcolm Pirnie Inc. 9,516.00 9,516.00Mesa Consolidated Water District -Metropolitan Water District 113,841.88 540,190.49 29,662.09 683,694.46Mission RCD 14,687.96 28,134.84 9,080.92 51,903.72OC Weekly Media, OC Printing -Prudential Overall Supply, Rajan Brown 2,466.00 1,861.50 4,327.50Sierra Analyical Labs, Inc -URS Corp 1,760.00 3,547.50 5,307.50Waterwise Consulting, Inc. 8,987.50 1,085.00 10,072.50Miscellaneous ExpensesInterest Expense 477.57 477.57Total Expenditures 140,283.41 586,689.55 76,201.26 - - - - - - - - - $ 803,174.22Cash - Ending Balance $ 25,685.13 $ (331,694.49) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61) $ (363,812.61)G:\A&F COMM\FY 10-11\CF by Vendor Page 1

MemorandumDATE: October 13, 2010TO:FROM:SUBJECT:Administrative & Finance Committee(Directors Thomas, Royce, Barbre)Kevin HuntPreliminary Financial Report for Fiscal Year 2009-10 (Unaudited)Our final unaudited General Fund Revenues for 2009-10 are $5.32 million. This is $67,000less than budgeted due to lower water demands caused by wetter, cooler weather, a weakeconomy and lower interest earnings offset by an insurance refund from ACWA/JPIA.Total General Fund Expenses were at $6.06 million, approximately $98,000 higher thanbudgeted mainly due legal expenses on institutional issues. Detailed variances arereflected in the variance analysis report on the following pages.Consequently, the total transfer from Reserves for the year is at $743,000, $164,000 morethan budgeted, leaving a Reserve balance of $3,913,000 as of June 30, 2010.The Industrial Process and Hotel Water Use Reduction program implementation is slowerthan anticipated due to the economy. Overall, the Water Use Efficiency program finishedthe year at 68% of its revenue and expense goals.During the Fiscal Year 2009-10, there is no Tier 2 payment due to Metropolitan and theTier 2 fund balance is at $4.7 million as of June 30, 2010. The Capacity Charge balance isat $89,000 at year-end.

Municipal Water District of Orange CountyProjected versus Budget Variance Analysis reportFiscal Year 2009-10General FundRevenues:Water Rate RevenuesWater increment charges are $114,000 lower than Budget due to lower water demand caused wetter, coolerweather (4" higher than long-term average) and increase conservation efforts impacted by higher retailer waterrates.Interest Income$45,000 lower than Budget due to lower than expected interest earningsOther IncomeHigher than budget by $77,000 due mainly to the insurance refund from ACWA/JPIAExpenses:Personnel Expenses $47,000 over Budget due to:- 2 extra days of payroll in the fiscal year- Excess vacation reimbursement- Higher tuition reimbursementProfessional fees:$66,000 under Budget due mainly to Prop 50 Urban Drought Grant Recovery from the Department of WaterResourcesOutside Engineering$17,000 over BudgetLegal Expenses--$159,000 over Budget mainly due to:Legal staff provided input towards completion of the LAFCO Governance Study and spent considerable timeaddressing the drafting of the Settlement Agreement between MWDOC and its member agencies.Review of a contamination case with respect to the groundwater basin where MET and MWDOC were broughtin- Assistance to the South Orange Coastal Ocean Desalination Project on legal issues.-Preparation of multiple party agreements for various contracts including the Urban Water Management Planwork and the Budget Based Tiered Rate Grant as well as numerous Water Use Efficiency Contracts.- Review of the Poseidon Term sheet.- Settlement of contract issues with XO Communications and Time Warner and the San Diego Lawsuit.- Review of issues regarding appointment of a MWDOC director for a vacancy.- Feasibility of adopting a parcel charge.General & Administrative expenses:$66,000 under Budget due to:- Savings from District cost efficiency measuresTransfer-in fromReserve:Based on the above results, the District anticipates to transfer $743K from the Reserves to fundits operation in Fiscal year 2009-10, an increase of $164K over the anticipated budgeted transfer.The Reserve Fund ending balance as of June 30, 2010 is estimated to be at $ 3,913,281G:\A&F COMM\Budget Review\FY 09-10\09-10 Yearend Operating resullt Review10/7/20105:08 PM

Municipal Water District of Orange CountyProjected versus Budget Variance Analysis reportFiscal Year 2009-10WUE-The Industrial Process and Hotel Water Use Reduction program implementation progress is slower thananticipated due to the economy, business owners are not willing to invest in water saving measurements.Water Fund- Capacity Charge balance of $89,073 at 6-30-10.- Tier 2 Contingency balance is at $4.7 million at year end.G:\A&F COMM\Budget Review\FY 09-10\09-10 Yearend Operating resullt Review10/7/20105:08 PM

MUNICIPAL WATER DISTRICT OF ORANGE COUNTYRevenues and Expenditures Actual versus BudgetFiscal Year 2009-10( $000 Omitted )General FundActual Budget VarianceREVENUESWater Rate revenues:Retail connection fees 3,333 3,333 -Water rate increment 1,648 1,762 (114)Subtotal 4,981 5,095 (114)Other Revenues:Interest income 198 228 (30)Other income 140 63 77Subtotal 338 291 47TOTAL REVENUES5,319 5,386 (67)EXPENSESPersonnel expenses (inc. Dir.) 3,896 3,849 (47)Professional services 606 671 66Outside engineering 167 150 (17)Legal expense 377 218 (159)Travel & Conference 67 62 (5)Dues and memberships 138 141 4General & Admin expense 660 725 66Election expense 125 125 -Capital acquisition 29 25 (4)TOTAL EXPENSES6,063 5,965 (98)Transfer to (from) Reserve (743) (579) (164)1 10/7/20105:09 PM

Municipal Water District of Orange CountyRevenues and Expenditures Actual vs Budget Detailed Comparative ReportFiscal Year 2009-10General FundACTUAL BUDGET VarianceREVENUESRetail Connection Charge 3,332,912 3,332,912 -Water Increment 1,648,368 1,762,053 (113,685)Water rate revenues 4,981,280 5,094,965 (113,685)Interest Revenue 198,159 228,000 (29,841)Subtotal 198,159 228,000 (29,841)Miscellaneous Income 57,858 3,000 54,858School Contracts 82,029 60,000 22,029Subtotal 139,887 63,000 76,887TOTAL REVENUES 5,319,326 5,385,965 (66,639)Transfer in from Reserve 743,497 579,279 164,218Total Revenues and ReserveTransfer6,062,823 5,965,244 97,5792 10/7/2010 5:10 PM

Municipal Water District of Orange CountyRevenues and Expenditures Actual vs Budget Detailed Comparative ReportFiscal Year 2009-10General FundEXPENSESACTUAL BUDGET VarianceSalaries & Wages 2,810,720 2,684,771 (125,949)less Recovery from Grants (126,194) (66,400) 59,794Directors' Compensation 177,644 168,656 (8,988)MWD Representation 74,464 72,568 (1,896)Employee Benefits 871,471 869,316 (2,155)less Recovery from Grants (37,654) - 37,654Fringe Benefits-Directors 70,740 63,265 (7,475)Health Ins $'s for Retirees 36,356 36,152 (204)Training Expense 1,415 10,000 8,585Tuition Reimbursement 14,928 5,500 (9,428)Temporary Help Expense 1,938 4,800 2,862Personnel Expenses 3,895,828 3,848,628 (47,200)Engineering Expense 167,051 150,000000 (17,051)Legal Expense 376,807 217,500 (159,307)Audit Expense 17,800 18,500 700Professional Services 713,938 652,900 (61,038)less Recovery from Grants (126,208) - 126,208Professional Fees 1,149,389 1,038,900 (110,489)Conference-Staff 11,123 8,796 (2,327)Conference-Directors 6,399 8,400 2,002Travel & Accom.-Staff 34,207 25,680 (8,527)Travel & Accom.-Directors 14,865 18,780 3,915Travel & Conference 66,594 61,656 (4,938)Membership/Sponsorship 102,056 104,626 2,570CDR Support 35,500 36,700 1,200Dues & Memberships 137,556 141,326 3,770Automotive Expense 16,355 15,203 (1,152)Maintenance Office 106,849 133,518 26,669Rents & Leases 22,790 22,720 (70)Office Supplies 50,388 54,960 4,572Postage/Mail Delivery 15,631 25,036 9,405Outside Printing, Subscr & Books 48,495 56,440 7,945Maintenance-Computers 6,615 6,000 (615)Software Support & Expense 23,847 28,000 4,153Insurance Expense 111,613 115,200 3,587Utilities - Telephone 25,310 24,108 (1,202)Miscellaneous Expense 94,916 118,489 23,573Depreciation Expense 46,342 35,000 (11,342)MWDOC's Contribution To WEROC 90,359 90,359-Other Expenses 659,512 725,033 65,521Election Expense 125,000 125,000 -Capital Acquisition 28,944 24,700 (4,244)TOTAL EXPENSES 6,062,823 5,965,243 (97,579)3 10/7/2010 5:10 PM

MUNICIPAL WATER DISTRICT OF ORANGE COUNTYRevenues and Expenditures Actual versus BudgetFiscal Year 2009-10Other FundsActual Budget VarianceWEROCRevenues 177,469 186,313 (8,844)Expenditures 194,419 186,313 8,106Excess of Revenues over Expenditures (16,950) - (16,950)WUE Projects (details on page 5 & 6)Revenues 1,915,588 2,744,800 (829,212)Expenditures 1,871,006 2,744,800 (873,794)Excess of Revenues over Expenditures 44,582 - 44,582RPOI DistributionRevenues 6,497,642 2,340,365 4,157,277Expenditures 6,497,642 2,340,365 4,157,277Excess of Revenues over Expenditures- - -Ocean desalinationRevenues 1,792,982 1,454,000 338,982Expenditures 1,792,982 1,454,000 338,982Excess of Revenues over Expenditures0 - 04 10/7/20105:11 PM

MUNICIPAL WATER DISTRICT OF ORANGE COUNTYRevenues and Expenditures Actual versus BudgetFiscal Year 2009-10Water Use Efficiency ProjectsLandscape Performance CertificationActual Budget % UsedRevenues 116,421 93,000 125%Expenditures 83,074 93,000 89%Excess of Revenues over Expenditures 33,347 -Smartimer RebateRevenues 488,476 436,209 112%Expenditures 507,972 436,209 116%Excess of Revenues over Expenditures (19,496) -Industrial Process Water Use Reduction1Revenues 23,034 210,241 11%Expenditures 28,305 210,241 13%Excess of Revenues over Expenditures (5,270) -Rotating Nozzle RebateRevenues 364,235 494,879 74%Expenditures 395,781 494,879 80%Excess of Revenues over Expenditures (31,546) -Synthetic Turf ProgramRevenues 10,247 -Expenditures 11,664 -Excess of Revenues over Expenditures (1,417) -Hotel Water Use Reduction Program 1Revenues 116,217 455,278 26%Expenditures 99,060 455,278 22%Excess of Revenues over Expenditures 17,157 -Ultra Low Flush Toilet Rebate Program (ULFT)Revenues 265,545 47,200 563%Expenditures 278,979 47,200 591%Excess of Revenues over Expenditures (13,434) -High Efficiency Clothe Washer Rebate Program (HECW)Revenues 232,990 319,000 73%Expenditures 273,702 319,000 86%Excess of Revenues over Expenditures (40,712) -5 10/7/20105:11 PM

MUNICIPAL WATER DISTRICT OF ORANGE COUNTYRevenues and Expenditures Actual versus BudgetFiscal Year 2009-10Water Use Efficiency ProjectsCommercial Industrial & Institutional Rebate Program (CII)Revenues2210,343 688,993 31%Expenditures 190,764 688,993 28%Excess of Revenues over Expenditures 19,579 -Large Landscape SurveyRevenues 84,122 -Expenditures - -Excess of Revenues over Expenditures 84,122 -Residential Indoor-Outdoor SmarTimer & Nozzle InspectionRevenues 3,958 -Expenditures 1,707 -Excess of Revenues over Expenditures 2,251 -1 Less activities due to slow economy2Actually did 5,874 HET (2,114 in IRWD service area) comparing to budgeted 225 devices + 47K of marketing &printing costs6 10/7/20105:11 PM

Municpal Water District of Orange CountyRevenues and Expenditures Budget Comparative ReportGeneral FundFrom July thru June 2010AnnualBudgetMonth to Date Year to Date Budget % Used Encumbrance RemainingREVENUESRetail Connection Charge 0.00 3,332,912.00 3,332,912.00 100.00% 0.00 0.00Water Increment 132,239.25 1,648,367.50 1,762,052.50 93.55% 0.00 113,685.00Water rate revenues 132,239.25 4,981,279.50 5,094,964.50 97.77% 0.00 113,685.00Interest Revenue 15,496.54 198,159.43 228,000.00 86.91% 0.00 29,840.57Subtotal 147,735.79 5,179,438.93 5,322,964.50 97.30% 0.00 143,525.57Miscellaneous Income 0.00 55,949.70 3,000.00 1864.99% 0.00 (52,949.70)School Contracts 10,365.30 82,028.70 60,000.00 136.71% 0.00 (22,028.70)Delinquent Payment Penalty (8,781.72) 1,908.54 0.00 0.00 (1,908.54)Transfer‐In From Reserve 0.00 0.00 579,279.00 0.00% 0.00 579,279.00Subtotal 1,583.58 139,886.94 642,279.00 21.78% 0.00 502,392.06TOTAL REVENUES 149,319.37 5,319,325.87 5,965,243.50 89.17% 0.00 645,917.63

Municpal Water District of Orange CountyRevenues and Expenditures Budget Comparative ReportGeneral FundFrom July thru June 2010AnnualBudgetMonth to Date Year to Date Budget % Used Encumbrance RemainingEXPENSESSalaries & Wages 492,582.82 2,810,720.03 2,618,372.00 107.35% 0.00 (192,348.03)Salaries & Wages ‐ Grant Recovery (126,194.07) (126,194.07) 0.00 0.00 126,194.07Directors' Compensation 21,623.81 177,644.29 168,656.00 105.33% 0.00 (8,988.29)MWD Representation 8,199.94 74,464.32 72,568.00 102.61% 0.00 (1,896.32)Employee Benefits 15,150.20 871,471.11 869,316.00 100.25% 0.00 (2,155.11)Employee Benefits ‐ Grant Recovery (37,653.84) (37,653.84) 0.00 0.00% 0.00 37,653.84Fringe Benefits‐Directors 5,554.86 70,740.26 63,265.00 111.82% 0.00 (7,475.26)Health Ins $'s for Retirees 3,413.24 36,355.57 36,152.00 100.56% 0.00 (203.57)Training Expense 0.00 1,415.40 10,000.00 14.15% 0.00 8,584.60Tuition Reimbursement 2,006.49 14,927.66 5,500.00 271.41% 0.00 (9,427.66)Temporary Help Expense 0.00 1,937.60 4,800.00 40.37% 0.00 2,862.40Personnel Expenses 384,683.45 3,895,828.33 3,848,629.00 101.23% 0.00 (47,199.33)Engineering Expense 291.00 167,051.28 150,000.00 1.11 0.00 (17,051.28)Legal Expense 65,203.11 376,806.99 217,500.00 173.24% 0.00 (159,306.99)Audit Expense 0.00 17,800.00 18,500.00 96.22% 0.00 700.00Professional Services 106,248.18 713,937.84 652,900.00 109.35% 0.00 (61,037.84)Professional Services ‐ Grant Recovery (126,207.52) (126,207.52) 0.00 0.00% 0.00 126,207.52Professional Fees 45,534.77 1,149,388.59 1,038,900.00 110.64% 0.00 (110,488.59)Conference‐Staff 180.00 11,123.00 8,796.00 1.26 0.00 (2,327.00)Conference‐Directors 0.00 6,398.50 8,400.00 76.17% 0.00 2,001.50Travel & Accom.‐Staff 3,390.67 34,207.05 25,680.00 133.21% 0.00 (8,527.05)Travel & Accom.‐Directors 1,058.90 14,865.42 18,780.00 79.16% 0.00 3,914.58Travel & Conference 4,629.57 66,593.97 61,656.00 108.01% 0.00 (4,937.97)Membership/Sponsorship 5,060.00 00 102,055.65055 104,626.00 00 098 0.98 000 0.00 2,570.35CDR Support 0.00 35,500.00 36,700.00 96.73% 0.00 1,200.00Dues & Memberships 5,060.00 137,555.65 141,326.00 97.33% 0.00 3,770.35Maintenance Office 8,343.53 106,849.20 133,518.00 0.80 0.00 26,668.80Storage Rental & Equipment Lease 1,771.78 22,790.16 22,720.00 100.31% 0.00 (70.16)Office Supplies 5,756.91 50,388.06 54,960.00 91.68% 0.00 4,571.94Postage/Mail Delivery 1,047.45 15,630.58 25,036.00 62.43% 0.00 9,405.42Subscriptions & Books 0.00 3,645.29 2,940.00 123.99% 0.00 (705.29)Reproduction Expense 772.34 44,849.94 53,500.00 83.83% 0.00 8,650.06Maintenance‐Computers 1,217.29 6,615.41 6,000.00 110.26% 0.00 (615.41)Software Purchase 0.00 1,847.56 6,000.00 30.79% 0.00 4,152.44Software Support 8,982.00 21,999.91 22,000.00 100.00% 0.00 0.09Automotive Expense 1,065.09 15,538.88 14,511.00 107.08% 0.00 (1,027.88)Toll Road Charges 46.25 815.75 692.00 117.88% 0.00 (123.75)Insurance Expense 12,699.63 111,613.37 115,200.00 96.89% 0.00 3,586.63Utilities ‐ Telephone 1,422.10 25,310.06 24,108.00 104.99% 0.00 (1,202.06)Bank Fees 732.01 9,550.33 9,000.00 106.11% 0.00 (550.33)Miscellaneous Expense 12,508.53 85,366.03 109,489.00 77.97% 0.00 24,122.97MWDOC's Contrb. To Programs 7,529.91 90,359.00 90,359.00 100.00% 0.00 0.00Depreciation Expense 4,447.29 46,342.36 35,000.00 132.41% 0.00 (11,342.36)Other Expenses 68,342.11 659,511.89 725,033.00 90.96% 0.00 65,521.11

Municpal Water District of Orange CountyRevenues and Expenditures Budget Comparative ReportGeneral FundFrom July thru June 2010AnnualBudgetMonth to Date Year to Date Budget % Used Encumbrance RemainingElection Expense 10,416.71 125,000.00 125,000.00 1.00 0.00 0.00Capital Acquisition 11,999.69 28,944.07 24,700.00 117.18% 0.00 (4,244.07)TOTAL EXPENSES 530,666.30 6,062,822.50 5,965,244.00 101.64% 0.00 (97,578.50)NET INCOME (LOSS) (381,346.93) (743,496.63) (0.50)

Item No. 5aCONSENT CALENDAR ITEMOctober 20, 2010TO:FROM:Board of DirectorsAdministration & Finance Committee(Thomas, Royce, Barbre)Kevin Hunt, General ManagerStaff Contact: Katie DavanaughSUBJECT:National Water Resources AssociationNovember 10-12, 2010San DiegoSTAFF RECOMMENDATIONStaff recommends the Board of Directors consider authorizing travel as outlined.COMMITTEE RECOMMENDATIONCommittee concurred with staff recommendation.DETAILED REPORTCostRegistration $ 500Municipal luncheon $ 55Hotel$ 288/nightPlus incidentalsBudgeted (Y/N):Action item amount:Budgeted amount:Line item: Staff and Board TravelFiscal Impact (explain if unbudgeted):

Item No. 5bCONSENT CALENDAR ITEMOctober 20, 2010TO:FROM:Board of DirectorsAdministration & Finance Committee(Thomas, Royce, Barbre)Kevin HuntGeneral ManagerStaff Contact: Karl SeckelSUBJECT: CRWUA Annual Conference Program AgendaManaging a River of IssuesDecember 15 – 17, 2010STAFF RECOMMENDATIONStaff recommends the Board of Directors authorize travel as outlined.COMMITTEE RECOMMENDATIONCommittee concurred with staff recommendation.DETAILED REPORTWEDNESDAY, DECEMBER 158:00 -4:00 Registration2:30 – 5:00 Legal Colloquium- (topic to be determined based on currentissues)Engineering Colloquium- Nevada’s Intake No. 3Budgeted (Y/N):Budgeted amount:Action item amount:Line item:Fiscal Impact (explain if unbudgeted):

Action Item Page 2THURSDAY, DECEMBER 166:30 -4:00 Registration7:00 –7:00 Exhibits Open7:30 State Breakfasts9:00 Welcome– John Zebre, CRWUA President9:15 Business Meeting9:30 Video to present annual theme9:45 Secretary of the Interior and Bureau of ReclamationKen Salazar, Secretary, U.S. Dept of the Interior (Invited)10:30 – 12:00 The Future of Coal Power and Colorado River Water Users12:00 – 1:45 Lunch and Entertainment2:00 Prize drawing following lunch2:00 - 3:30 Law of the River: New Perspectives3:45 – TBD Bi-national Negotiations DiscussionTBDWater’s Role in Shaping History5:00 – 7:00 Percolation and RunoffFRIDAY, DECEMBER 177:00 – 11:00 Exhibits Open8:00 – 8:45 Invasive Species, from Quagga Mussel to Asian Carp8:45 – 9:45 Bureau of Reclamation Report and Discussion9:45 – 10:30 The New Hoover Dam BridgeAdjournment11:00 – 2:00 (Tentative) Tour of Alfred Merritt Smith Water TreatmentFacility (SNWA Intake No. 3) and New Hoover Dam BridgeCostRegistration $ 395Membership Dues $ 20Thurs. Lunch $ 50Hotel$ 108/night+ incidentals and mileage

2010 Annual ConferenceManaginga RiverDecember 15-17of IssuesThe Conference features:aThe latest news from Secretary ofthe Interior Ken Salazar (invited)aStatus of binational negotiationsaPanel: Is there a new perspectiveon the Law of the River?Inside you’ll find:aA preliminary program, includingtopics, a new tour, entertainmentand spouse/guest activitiesaCurrent information and formsfor registration, sponsorships andhotel accommodationsCaesars PalaceLas Vegas, NevadaDon’t miss the tour of thenew Hoover DamBypass Bridge

CRWUA Annual Conference Preliminary ProgramWednesday, December 158 a.m. to 4 p.m. RegistrationExact Timesto be determinedMembership Committee*Nominations Committee*Program Committee*Public Affairs Committee*Resolutions Committee*9:30 a.m. to 12:30 p.m. Upper Colorado River Commission*10 a.m. to 1 p.m. SNWA New Hoover Dam BypassBridge & Lake Mead Intake No. 3Preview Tour(See Page 4 for details)10 a.m. Audit Committee*11 to 11:30 a.m. President’s Meeting withCommittee Chairs11:30 a.m. to 3 p.m. CRWUA Board of TrusteesLuncheon*2 p.m. to 6 p.m. Exhibit Hall Open2:30 p.m. to 5 p.m. Legal Colloquium: WaterDelivery and AccountingObligationsEngineering Colloquium:Engineering Responsesto Drought3 p.m. to 5 p.m. Colorado River Board of California*10:30 a.m. Budget Committee*Meetings are designated with an asterisk*6:30 a.m. to 4 p.m. Registration7 a.m. to 7 p.m. Exhibit Hall Open7:30 a.m. State Caucus Breakfasts9 a.m. WelcomeJohn Zebre, CRWUA President9:15 a.m. Business Meeting9:30 a.m. Video: Managing A River of Issues9:45 a.m. U.S. Department of the Interiorand Bureau of ReclamationKen Salazar, Interior Secretary(Invited)Break and Prize DrawingThursday, December 1610:30 to Noon The Future of Coal Power andColorado River Water UsersNoon - 1:45 p.m.Lunch with Entertainment— Cowboy Humorist Baxter Black2 p.m. Break and Prize Drawing2:15 to 3:30 p.m. The Law of the River:New PerspectivesBreak and Prize Drawing3:45 to 4:45 p.m. Discussion: BinationalNegotiations5 to 7 p.m. Percolation and Runoff— Prize DrawingFriday, December 177 to 9 a.m. Continental Breakfast (Exhibit Hall)7 to 10:30 a.m. Exhibit Hall Open8 to 8:45 a.m. Invasive Species: Quagga Mussel to Asian Carp8:45 to 9:45 a.m. Bureau of Reclamation Report and Discussion9:45 to 10:30 a.m. Presentation: Hoover Dam’s New Bypass BridgeSpouse/Guest ActivitiesThursday, December 168 to 9 a.m. Continental Breakfast9 to 11 a.m. ProgramFriday, December 178 a.m. Continental BreakfastNoonAjournmentCRWUA 2010 Annual Conference Page 3

New Infrastructure TourWednesday, December 1510:00 a.m. - 1:30 p.m.New Hoover Dam Bypass BridgeandSNWA Lake Mead Intake No. 3 Preview TourDeparting and returning to Caesars PalaceNew this year, we are pleased tooffer a tour of the Hoover DamBypass Bridge and preview of theSouthern Nevada Water Authority’sLake Mead Intake No. 3. Conferenceattendees are invited to join us onWednesday, December 15, from10:00 a.m. - 1:00 p.m. (departingfrom and returning to Caesars).Participation is limited.If you are interested in participating,please contact Mitch Bishop atMitch.Bishop@snwa.comPage 4CRWUA 2010 Annual Conference

Preregistration InformationPreregistration FeePreregistration is $395 if paid by November 19. This includes registration feeto the conference; one Thursday caucus breakfast meeting and one Thursdaylunch; as well as entry to the Percolation and Runoff Thursday night.Retiree preregistration is $198 if paid by November 19 and includes all of thebenefits listed above. You are considered a retiree only if you are fully retiredand paying your own way. If a district, association or organization is payingyour registration fee, you are not considered a retiree for this purpose.Please send your completed Preregistration Forms and check or credit cardauthorization to:By mail: Post Office Box 1058, Coachella, CA 92236By Federal Express: 85-995 Avenue 52, Coachella, CA 92236NOTE: There are no single-day registrations. Fee is for one/all CRWUA events,and does not include hotel accommodations.Membership DuesIndividual memberships are $20 and must be paid to attend the conference.Organizational dues do not apply.Dates to RememberNovember 15 — Last day youcan reserve a hotel room atCaesars Palace and receivethe group rate.November 19 — Deadline foryour preregistration.November 24 — Final day youcan request a cash refund, lessthe $75 processing fee.November 24 — Last day youcan request substitutions,which must be in writing.Preregistration DeadlineNovember 19 is the deadline for preregistration. After that date, you must register at the conference. On-site registrationis $420 or, if retired, $223, and may be paid by check or credit card (VISA or MasterCard). All preregistrations receivedafter November 19 will be returned, regardless of postmark.MealsAdditional Thursday luncheon tickets may be purchased. Preregistration cost: $50 On-site cost: $55Breakfast tickets are not available for purchase. The caucus breakfast is a business meeting and only current, paidmembers may attend.Online RegistrationPreregistration is also available on-line by visiting CRWUA’s web site at: www.crwua.orgSpouses/GuestsActivities for spouses/guests are provided. On Thursday morning, there is a continental breakfast and a program. OnFriday morning, they can enjoy a continental breakfast. There is no charge for these functions.For our records, it would be greatly appreciated if you would inform us whether or not your spouse/guest intends onparticipating in the program by completing the Activities for Spouse/Guest form.Cancellation/Refund/Substitution PolicyPlease email all cancellation/refund/substitution requests to Darlena Davis at ddavis@cvwd.org by 5 p.m., November 24,or by FAX at (760) 398-3711.Substitution requests after November 24 will be handled on-site.There is a processing fee of $75 on all registration refunds. Refunds will be processed after completion of the conference.There are no refunds after November 24.Hotel ReservationsThe first 300 room reservations are guaranteed in Palace Tower at $108. After those are taken, other rooms are available at$108 or you can pay $138 to be guaranteed a room in the Palace Tower. November 15 is the deadline for room reservations.You may contact Caesars Palace directly at 1-(866)-227-5944 to reserve your room. Be sure to mention the Conference Codeof SCCRW0Questions: Call Isabel Luna or Darlena Davis at (760) 398-2651, or e-mail them at iluna@cvwd.org or ddavis@cvwd.org.Page 6CRWUA 2010 Annual Conference

Fill in completely – Please Print/Type Clearly2010 Annual ConferencePreregistration FormCaesars Palace • Las Vegas • December 15 - 17RegistrantSpouse/GuestName Badge To ReadName Badge To ReadCompanyAddressCity State ZipPhoneE-MailAmount PaidPreregistration Package (if received by November 19)(Includes registration, one Thursday caucus breakfast meeting and one Thursday lunch)Retiree Preregistration Package (if received by November 19)(Considered a retiree if fully retired and paying your own way. If district, association or organization is payingregistration fee, you are not considered a retiree for this purpose. Includes the same as above.)$395 $______________$198 $______________Additional Thursday Lunch Tickets ______ (Quantity @ $50 each) $50 $______________2010 Individual Membership Dues(If not previously paid. Membership dues are required to attend conference. Organizational dues do not apply.)$20 $______________Total$______________ON-SITE/LATE REGISTRATION FORM(After November 19)Registration Package (includes same as above) $420 $______________Retiree Registration Package (includes same as above) $223 $______________Additional Thursday Lunch Tickets ______ (Quantity @ $55 each) $55 $______________2010 Individual Membership Dues $20 $______________(If not previously paid. Membership dues are required to attend conference. Organizational dues do not apply.)Total$______________Make check or money order payable to CRWUA.□ Visa □ MasterCard Card Number Expiration DateCardholder Name(Please print)Cardholder Signature(Must be signed to process credit card payment)Return this form with payment to: Federal Express to: Online Registration: Questions: Phone:CRWUA 85-995 Avenue 52 www.crwua.org Isabel Luna - iluna@cvwd.org (760) 398-2651Post Office Box 1058, Coachella, CA 92236 Coachella CA 92236 Darlena Davis - ddavis@cvwd.org FAX: (760) 398-3711Preregistration Deadline: November 19.Refunds: In writing, by e-mail, fax or mail by November 24. There is a $75 processing fee on all registrations.CRWUA 2010 Annual Conference Page 7

Hotel InformationROOM RESERVATIONS: Call Caesars at (866) 227-5944. Mention the CRWUA Conference Codeof SCCRW0 to receive the group rate or fax the form below to (702) 731-7172.DEADLINE for hotel reservations is November 15.Look for the CRWUA dedicated windowat the hotel registration area and avoid the long lines.Colorado River Water Users AssociationDecember 15-17, 2010This reservation, along with one night’s deposit, must be received by Caesars Palaceno later than November 9.Hurry!! The first 300 to reserve rooms will be upgraded to the Palace Tower for $108 Single / Double Occupancy - DELUXE ROOM................................................................ $ 108 Single / Double Occupancy - PALACE TOWER ROOM.................................................. $ 138SPECIAL REQUESTS (Based upon availability at check-in) Non - Smoking Smoking One Bed (King) Two Beds (Dbl. or Queen) Other_____________WILL ARRIVE: Day___________________ Date________________ Time ___________am/pmWILL DEPART: Day___________________ Date________________ Time ___________am/pmCHECK-IN time is after 3 p.m.; CHECK-OUT time is 11 a.m. dailyNAME: SHARE WITH:HOME ADDRESS:CITY: STATE: ZIP:HOME PHONE: ( )COMPANY NAME:COMPANY ADDRESS:CITY: STATE: ZIP:BUSINESS PHONE: ( ) FAX NUMBER: ( )NOTE: Reservations will not be held without a deposit. Credit Card numbers are taken as a guarantee only, not as a method ofpayment; deposit will be charged upon receipt. Reservations must be cancelled three (3) days or 72 hours prior to arrival to avoidforfeiture of deposit. Group rates, rooms and dates are subject to availability.Enclosed is my one night’s deposit payable by: (Please check one) Check Credit Card(If you are guaranteeing your deposit with a credit card, please complete the following)Visa MasterCardCredit Card Number:_____________________________________ Exp. Date:_____________Please print name as it appears on card:___________________________________________CRWUA 2010 Annual Conference Page 9

OfficersPresidentJohn A. Zebre, WyomingVice PresidentGeorge Arthur, Colorado RiverIndian Tribes PartnershipSecretary-TreasurerAldena Cherva, WyomingAssistant Secretary-TreasurerIsabel Luna, CaliforniaDirectorsArizonaHerb GuentherDavid ModeerJohn SullivanCaliforniaTellis CodekasJames EdwardsBart FisherColoradoJim BroderickStanley W. CazierJohn PorterNevadaGeorge CaanDennis B. PorterBill RinneNew MexicoCharles BlassingameJim T. DunlapRandy KirkpatrickUtahDon A. ChristiansenRandy CrozierRonald W. ThompsonWyomingBenjamin C. BrackenAlan W. HarrisJohn A. ZebreColorado River Indian TribesGeorge ArthurHarold CuthairEldred EnasResident AgentColorado River Commission of Nevada

Item No. 5cCONSENT CALENDAR ITEMOctober 20, 2010TO:FROM:Board of DirectorsPublic Affairs and Legislation CommitteeKevin Hunt, General ManagerStaff Contact: Darcy BurkeSUBJECT:3 rd Annual North Texas Water ConservationNovember 18, 2010Dallas, TexasSTAFF RECOMMENDATIONStaff recommends the Board of Directors consider authorizing staff to present at and attendthe above referenced conference.COMMITTEE RECOMMENDATIONCommittee concurred with staff recommendation.REPORTThe public affairs department was invited to present on the “Water: Do More with Less”program at the 3td Annual North Texas Water Conservation Symposium – a joint efforthosted by the Tarrant Regional Water District (TRWD, the North Texas Municipal WaterDistrict (NTMWD), and City of Dallas Water Utilities (DWU).CostThere is no cost to MWDOC except for staff time. All expenses including airfare,transportation and accommodations are being provided by the conference hosts andunderwritten by a number of consultants – see email below.From: Denise Hickey [mailto:dhickey@NTMWD.COM]Sent: Friday, August 27, 2010 12:36 PMTo: Jessica HanleyCc: Bobbie HenleySubject: request for presentation in TEXAS!!!!Budgeted (Y/N): Yes Budgeted amount: $7,000Action item amount: n/aFiscal Impact (explain if unbudgeted):Line item: Staff and Board Travel

Action Item Page 2Jessica,As I mentioned in my voice mail, we will be hosting our 4 th Annual Water ConservationSymposium here in North Texas on Thursday, Nov. 18 and would very much like for you topresent “Water: Do More with Less – A Community Outreach Program”. We feel this topic iswell suited for our communities.The Symposium is a joint effort hosted by the Tarrant Regional Water District (TRWD, the NorthTexas Municipal Water District (NTMWD), and City of Dallas Water Utilities (DWU). The goal isto educate representatives from our municipal customer cities about water conservationprograms and to show them what they can do to increase water savings within theircommunities.The event is being sponsored by several consultants in our region to help underwrite the costs.Air travel, hotel, meals and ground transportation will be covered for our invited speakers. It’s ahalf day event that will include other experts from across the country. I have attached theagenda from last year’s Symposium to give you an idea of what the event is about. A few moredetails are included below:• This is a joint effort between three of the largest water suppliers in the state of Texas –TRWD, NTMWD, and Dallas Water Utilities. Population within our North Texas serviceareas represents about 25% of the Texas population – 5.5 to 6.0 million.• Audience will be made up of decision makers from water utilities of all sizes and willinclude a mix of staff from directors of utility and public works departments to operatorsto educators and communicators.• There are two major public outreach campaigns in our collective service area: SaveWater. Nothing can replace it. (Dallas and TRWD) and Water IQ: Know Your Water.(NTMWD). Our programs primarily target outdoor water waste.• We expect 180 to 200 attendees.• We’ll have two tracks of presentations (running concurrently).• There will be a panel discussion following lunch – which will last from 30 to 60 minutes.We hope that you will accept our invitation and that your calendar is open for the event!I will contact you after Labor Day.Denise HickeyPublic Relations CoordinatorPO Box 2408Wylie, Texas 75098P: 972.442.5405F: 972.295.6440

3rd Annual North Texas RegionalWATERCONSERVATIONSYMPOSIUMNTMWDTuesday, November 10, 2009 8:00 a.m. - 2:00 p.m.Arlington Convention Center8:00 Registration8:30 Welcome and IntroductionKeynote Speaker: Thist for Power: The Nexus of Energy and WaterMichael E. Webber, PhDUniversity of Texas at AustinTRACK ONE9:30Giving Consumers a Voice: Conservation and Social MediaPark Howell, Park and CompanySponsored by: Freese and Nichols, Inc.10:3011:30 Engineering Humans for Water EfficiencyJeffrey R. Hoffman, The Hoffman Agency and Blue Water OutreachSponsored by: Alan Plummer Associates, Inc.9:3010:30Evaluating Water Savings from Device Distribution - Portland’s StoryJudi Ranton, Portland Water BureauSponsored by: CaromaTRACK TWOData Mining: San Diego’s Five Years of Commercial Landscape AuditsJoEllen Jacoby, City of San DiegoSponsored by: CDMA Success Story: Rain Barrel Classes in Allen, Garland and MesquiteDotty Woodson, Texas AgriLife Research and Extension Urban Solutions CenterSponsored by: Niagara Conservation11:30 Partnering with the Green Industry: Making Water Conservation SuccessfulJerry Lewis, National Irrigation Association12:30 Lunch1:00Special Luncheon Speaker - Regional Water PlanningCarolyn Brittin, Texas Water Development Board1:30 Panel Discussion: An opportunity to ask the expertsEvent made possible by the generous support of the following sponsors:

Item No. 6-1ACTION ITEMOctober 20, 2010TO:Board of DirectorsFROM: Kevin Hunt Staff Contact: Darcy M. BurkeGeneral ManagerSUBJECT:MWDOC Draft Strategic ReviewSTAFF RECOMMENDATIONStaff recommends that the Board of Directors review and discuss the revised MissionStatement, the Strategic Goal Statements, the draft Strategies and the draft Objectives andapprove them.COMMITTEE RECOMMENDATIONThis item has not been reviewed by a Committee.SUMMARYA second Strategic Goal Setting Workshop was held for the MWDOC Board of Directors inSeptember to discuss specific strategies and objectives that would support the approvedStrategic Goals. In addition, it was also recommended that MWDOC’s Mission Statementbe re-written using the same elements, but changing the order. The revised MissionStatement is provided for the Board’s consideration.From that input at the Board Workshop, the Member Agency Manager’s meeting and the allstaff meeting, draft strategy statements and objectives for each goal were crafted. Thesestrategies and objectives support the four goal statements that were approved in August,and address the following areas:• Metropolitan Representation• Sustainability• Financial Stewardship• CommunicationsBudgeted (Y/N): NoBudgeted amount:Action item amount:Line item:Fiscal Impact (explain if unbudgeted):

Action Item Page 2DETAILED REPORTAfter considering the goals, strategies and objectives, a suggestion was made to reviseMWDOC’s Mission Statement, using the same elements, but changing the order. Therevised Mission Statement is proposed as follows:“To provide reliable, high-quality supplies from MWD and other sources to meetpresent and future needs, at an equitable and economical cost, and to promotewater-use efficiency for all of Orange County.”Each goal statement has a number of specific strategies and objectives proposed to supportthe goal. There are as follows:1. MWD Representation – MWDOC will provide leadership and advocacy on Regionaland Orange County water issues at MET.a. Strategy 1: Work with key stakeholders to define Orange County objectivesi. Objective 1: Work with stakeholders to prepare documentation on keyissues/desired outcomes; prioritize MET concerns and review withMET directors and MWDOC Board quarterlyii. Objective 2: Develop action plan for Board review and managementimplementationiii. Objective 3: Engage in regular two way dialogue with the memberagencies to ensure their needs/priorities are understood andconsidered in MWDOC work activities and that the member agenciesare kept informed on MET, OC and MWDOC water activitiesiv. Objective 4: Revise priorities as requiredv. Objective 5: Speak with one voice on OC issues at METb. Strategy 2: Position MWDOC MET Directors and MWDOC Directors to befluent and strategic on the OC priorities and regional water issuesi. Objective 1: Continue monthly MET Director briefing sessions andprovide information/key points regularly on MET issues to the MWDOCBoardii. Objective 2: Continue joint MWDOC Board and MET Director Meetingsiii. Objective 3: Develop MWDOC MET Directors as MET officersiv. Objective 4: Support MWDOC MET Directors and MWDOC Directorsas effective advocates of OC priorities and regional water issuesv. Objective 5: Cultivate key relationships among MWDOC MET Directorsand other MET Directorsvi. Objective 6: Develop and distribute to MWDOC MET Directors andMWDOC Directors major issue briefing papers in understandable, nontechnicaltermsc. Strategy 3: Form coalitions to address Orange County objectivesi. Objective 1: Identify and coordinate with key MET member agencieson common issuesii. Objective 2: Maintain effective participation in the MET memberagency manager working groupiii. Objective 3: Actively develop coalitions to address emerging issues

Action Item Page 3d. Strategy 4: Maintain interdependent and collaborative relationships with METi. Objective 1: Actively participate in relevant MET member agencymeetings, i.e. Manager’s Meeting, IRP, Water-Use Efficiency, PIO,etc…ii. Objective 2: Meet informally with MET staff to maintain opencommunicationiii. Objective 3: Engage MET Directors and staff as active participants inMWDOC events and workgroupsiv. Objective 4: Ensure that information is conveyed internally amongMWDOC Board and MWDOC staffv. Objective 5: Assist in the development of and advocate for, MET's Bay-Delta strategyvi. Objective 6: Assist in the development of, and advocate for, MET's "fullColorado River Aqueduct" strategy2. Goal 2: Sustainability – MWDOC will advocate water programs and policiesthat seek to develop sustainable, reliable and high quality water supplies forits service area.a. Strategy 1: Maximize development of local sustainable O.C. water resourcesi. Objective 1: Develop ocean desalination as a component of the waterresources strategy for Orange Countyii. Objective 2: Work collaboratively with MET and OCWD to develop along-term replenishment program and improve basin water yield andqualityiii. Objective 3: Work collaboratively with La Habra, San Mateo, San JuanBasin stakeholders to improve the yield and/or quality of the basins1. Note: Tactics will include coordination with Cal Water as itrelates to the La Habra Basiniv. Objective 4: Conduct planning studies within OC and evaluate thereliability and sustainability of water supply strategies for OC anddevelop proposals for improvementsv. Objective 5: Evaluate available tools for assessing sustainability ofwater supply strategiesvi. Objective 6: Work collaboratively with OCWD and others regardingclimate change risk associated with OC water suppliesvii. Objective 7: Evaluate opportunities to expand the development ofrecycled water in O.Cb. Strategy 2: Implement water use efficiency to improve supply reliabilityi. Objective 1: Model SBX 7-7 compliance options for and assist memberagencies to select a preferred option to comply with 20% X 2020;consider regional compliance as a compliance approachii. Objective 2: Develop and implement a mix of water use efficiencyprograms to assure 20% x 2020 compliance and also to establishWater Use Efficiency as a mainstay in the water resources mix forOrange Countyiii. Objective 3: Participate in the development and adoption of water useefficiency legislation, ordinances and practicesiv. Objective 4: Promote water efficient agency operations

Action Item Page 4v. Objective 5: Maintain or enhance educational programs that improveresidential, commercial and industrial water efficiency performancevi. Objective 6: Establish metrics (Performance parameters) as well asconduct research and evaluate existing programs to ensureeffectivenessvii. Objective 7: Identify dependable local funding mechanismsc. Strategy 3: Work with member agencies to increase Orange County’s WaterSupply from Non-Local Sourcesi. Objective 1: Assist member agencies with water transfers andexchangesii. Objective 2: Identify and screen innovative, non-local water supplyoptionsd. Strategy 4: Ensure the effectiveness of the WEROCi. Objective 1: Conduct internal and external emergency preparednessexercises and trainingii. Objective 2: Coordinate with MET, city, county, regional, state andfederal agencies as appropriateiii. Objective 3: Review member agency, WEROC and Operational Areaplansiv. Objective 4: Respond to emergencies as required , or as beneficial forlearning purposesv. Objective 5: Ensure that the WEROC is staffed and ready to supportemergency operationsvi. Objective 6: Conduct outreach and communicate WEROC benefits tocounty, regional and state stakeholders3. Goal 3: Financial Stewardship Strategies – MWDOC will be a prudent managerof the financial resources, assets, human talent, and rate setting authorityentrusted to it and pursue funding opportunities for the service area.a. Strategy 1: Ensure financial activities are accurate and transparenti. Objective 1: Obtain unqualified audit every yearii. Objective 2: Prepare and submit a monthly investment and financialreport (Treasurers report) for Board reviewiii. Objective 3: Leverage the new financial system to provide progressreports to the Board on key capital and operating projectsiv. Objective 4: Provide monthly reporting , semi-annual forecasting ofperformance compared to budget and detailed quarterly discussionwith the Administration and Finance Committeev. Objective 5: Provide transparent and easy public access to districtfinancial informationb. Strategy 2: Use technology to drive efficiencyi. Objective 1: Develop a landscape database to streamline reporting,track water savings, and facilitate quality control measuresii. Objective 2: Ensure the MWDOC website reflects current information,programs and issuesiii. Objective 3: Optimize the financial software to facilitate managementdecision making

Action Item Page 5iv. Objective 4: Use the grant module in the new financial system tomanage grant activityv. Objective 5: Evaluate full GIS capabilityvi. Objective 6: Evaluate costs/benefits to publicly broadcast committeeand board meetingsvii. Objective 7: Evaluate technology opportunities to improve outreachand education programsc. Strategy 3: Manage district budget and assets to efficiently achieve theDistrict's prioritiesi. Objective 1: Maximize MET, State and Federal grants for our servicearea (e.g. CEC funding for energy/water savings)ii. Objective 2: Develop new public/private partnerships to reduce costs tothe ratepayeriii. Objective 3: Review District operations to increase efficiency andreduce costsiv. Objective 4: ID opportunities for cost sharing w/ other agenciesv. Objective 5: Develop a long range finance plan to support the strategicreview including potential new sources of revenuevi.Objective 6: Develop a "choice" budgetd. Strategy 4: Attract and retain a high quality efficient workforce to achieve thestrategic review goalsi. Objective 1: Develop career progression for staffii. Objective 2: Develop a mentoring program for staff developmentiii. Objective 3: Develop a staff skills inventoryiv. Objective 4: Evaluate need for and construct of a training program(including cross-training)v. Objective 5: Develop a succession planvi. Objective 6: Document workflow plans for each position4. 4. Goal 4: Communications – MWDOC will engage and understand its memberagencies and the communities it serves in order to meet their water needs andensure that these communities understand ta. Strategy 1: Strengthen relations with member agenciesi. Objective 1: Actively engage member agencies in monthly managermeetings to provide information and solicit comments and input on keyitemsii. Objective 2: Conduct other meetings as appropriate (e.g. water useefficiency, public affairs workgroup, elected officials meetings, etc.)iii. Objective 3: Increase Director and staff presence at member agencyBoard, Council and other member agency leadership meetingsiv. Objective 4: Increase frequency of individual (Director and staff)contacts to strengthen personal relationships and dialoguev. Objective 5: Conduct an annual member agency manager meeting tofocus on long term OC water challengesvi. Objective 6: Maintain staff accessibility and responsiveness to memberagenciesb. Strategy 2: Support the Board of Directors to Facilitate InformedPolicy/Decision Making

Action Item Page 6i. Objective 1: Support Board and committee meetingsii. Objective 2: Optimize effectiveness of Board calendariii. Objective 3: Organize Board Workshops and/or identify key outsideeducational opportunities for Board information on key policies orissuesc. Strategy 3: Develop effective community outreachi. Objective 1: Tailor messages, communication channels and outreachefforts to address target market needsii. Objective 2: Participate in community events in coordination with ourmember agenciesiii. Objective 3: Sponsor outreach events with targeted emphasis (e.g. OCWater Summit, inspection trips, water policy dinners)iv. Objective 4: Implement the Board adopted social media policyv. Objective 5: Conduct surveys to measure effectiveness of programsand servicesvi. Objective 6: Ensure communications materials are consistent with thestrategic reviewvii. Objective 7: Evaluate school program effectivenessd. Strategy 4: Ensure that MWDOCs local, state and federal officials understandOC water issuesi. Objective 1: Advocate for OC water issues by conducting timely andconsistent briefings with key legislators/staffii. Objective 2: Develop position statements and seek support orsponsorship for key legislative positionsiii. Objective 3: Track and engage on regulations/legislation and otheradministrative actions that may impact OC wateriv. Objective 4: Coordinate with legislators to maximize fundingopportunities for OCv. Objective 5: Build coalitions to support OC water positions (e.g.desalination)e. Strategy 5: Engage with local, state, and federal regulators on regulationsaffecting OC wateri. Objective 1: Advocate for science based regulationsii. Objective 2: Advocate for streamlined permittingiii. Objective 3: Develop professional relationships with key regulatorsiv. Objective 4: Bridge and develop relationships/alliances withorganizations that share common interestsv. Objective 5: Engage and participate with coalitions to further regulatoryreformf. Strategy 6: Ensure all MWDOC staff are informed on District priorities andactivitiesi. Objective 1: Continue and promote forums to foster open staffcommunicationsii. Objective 2: Develop improved internal communication toolsFollowing the approval of the draft strategies and objectives, a scorecard will bedeveloped by November 30 th . A progress report will be provided to the board on March16, 2011.

Strategic Review UpdateStaff MeetingOctober 20, 2010Edward G. Means IIIVice PresidentMalcolm Pirnie

Today’s Agenda• Review the Strategic Review Process• Review of draft strategies supporting the goal• Review draft objectives• Next steps

Process to DateJune 12July 22issuesJuly 29Aug18Aug 19Sept 18Board Kickoff Workshop –review trends anddevelop “Goal” areasMWDOC member agency General Managersmeeting –review trends and discussStaff Workshop to develop draft Strategies &ObjectivesBoard approved Goal StatementsManagement working session to refineStrategies/ObjectivesBoard review of draft Strategies &Objectives

Process continued…September 23 Member Agency Manager UpdateSeptember 30 Staff UpdateOctober 20Finalize and AdoptNovember 30 Develop scorecardMarch 16Report on progress to the board

Mission StatementTo provide reliable, high‐quality suppliesfrom MWD and other sources to meetpresent and future needs, at anequitable and economical cost , and topromote water‐use efficiency for all ofOrange County.

Strategic Goal Statement #1Metropolitan Representation:“MWDOC will provide leadership and advocacy onRegional and Orange County water issues at MET”

Strategy 1 ‐ Work with key stakeholders todefine Orange County priorities• Objective 1: Work with stakeholders to preparedocumentation on key issues/desired outcomes; prioritizeMET concerns and review with MET directors andMWDOC Board quarterly• Objective 2: Develop action plan for Board review andmanagement implementation• Objective 3: Engage in regular two ‐ way dialogue with themember agencies to ensure their needs/priorities areunderstood and considered in MWDOC work activities andthat the member agencies are kept informed on MET, OCand MWDOC water activities• Objective 4: Revise priorities as required• Objective 5: Speak with one voice on OC issues at MET

Strategy 2‐Position MWDOC MET Directors andMWDOC Directors to be fluent and strategic onthe OC priorities and regional water issues• Objective 1: Continue monthly MET Directorbriefing sessions and provide information regularlyon MET issues to the MWDOC Board• Objective 2: Continue joint MWDOC Board and METDirector meetings• Objective 3: Develop MWDOC MET Directors asMET officers• Objective 4: Support MWDOC MET Directors andMWDOC Directors as effective advocates of OCpriorities and regional water issues

Strategy 2‐Position MWDOC MET Directors andMWDOC Directors to be fluent and strategic onthe OC priorities and regional water issuescontinued…• Objective 5: Cultivate key relationships amongMWDOC MET Directors and other MET Directors• Objective 6: Develop and distribute to MWDOCMET Directors and MWDOC Directors major issuebriefing papers in understandable, non‐technicalterms

Strategy 3 ‐ Form coalitions to address OrangeCounty objectives• Objective 1: Identify and coordinate with key METmember agencies on common issues• Objective 2: Maintain effective participation in theMET member agency manager working group• Objective 3: Actively develop coalitions to addressemerging issues

Strategy 4 ‐ Maintain interdependent andcollaborative relationships with MET• Objective 1: Actively participate in relevant MET member agencymeetings, i.e. Manager’s Meeting, IRP, Water‐Use Efficiency, PIO,etc…• Objective 2: Meet informally with MET staff to maintain opencommunication• Objective 3: Engage MET Directors and staff as active participantsin MWDOC events and workgroups• Objective 4: Ensure that information is conveyed internally amongMWDOC Board and MWDOC staff• Objective 5: Assist in the development of, and advocate for, MET'sBay‐Delta strategy• Objective 6: Assist in the development of, and advocate for, MET's"full Colorado River Aqueduct" strategy

Strategic Goal Statement #2Sustainability:“MWDOC will advocate for water programs and policies thatseek to develop sustainable, reliable and high qualitywater supplies for its service area”

Strategy 1 ‐ Maximize development of localsustainable OC water resources• Objective 1: Develop ocean desalination as acomponent of the water resources strategy for OrangeCounty• Objective 2: Work collaboratively with MET and OCWDto develop a long‐term replenishment program andimprove basin water yield and quality.• Objective 3: Work collaboratively with La Habra, SanMateo, San Juan Basin stakeholders to improve theyield and/or quality of the basins• Note: Tactics will include coordination with Cal Water asit relates to the La Habra Basin

Strategy 1 ‐ Maximize development of localsustainable OC water resources continued…• Objective 4; Conduct planning studies within OC andevaluate the reliability and sustainability of watersupply strategies for OC and develop proposals forimprovements• Objective 5; Evaluate available tools for assessingsustainability of water supply strategies• Objective 6; Work collaboratively with OCWD andothers regarding climate change risk associated withOC water supplies• Objective 7; Evaluate opportunities to expand thedevelopment of recycled water in O.C.

Strategy 2 ‐ Implement water use efficiency toimprove supply reliability• Objective 1; Model SBX 7‐7 compliance options for andassist member agencies to select a preferred option tocomply with 20% X 2020; consider regional complianceas a compliance approach• Objective 2; Develop and implement a mix of wateruse efficiency programs to assure 20% x 2020compliance and also to establish Water Use Efficiencyas a mainstay in the water resources mix for OrangeCounty• Objective 3; Participate in the development andadoption of water use efficiency legislation,ordinances and practices

Strategy 2 ‐ Implement water use efficiency toimprove supply reliability continued…• Objective 4: Promote water efficient agencyoperations• Objective 5: Maintain or enhance educationalprograms that improve residential, commercial andindustrial water efficiency performance• Objective 6: Establish metrics (Performanceparameters) as well as conduct research and evaluateexisting programs to ensure effectiveness• Objective 7: Identify dependable local fundingmechanisms

Strategy 3‐Work with member agencies toincrease Orange County’s Water Supply fromNon‐Local Sources• Objective 1‐Assist member agencies withwater transfers and exchanges• Objective 2‐Identify and screen innovative, non‐localwater supply options

Strategy 4 ‐ Ensure the effectiveness of theWEROC• Objective 1: Conduct internal and external emergencypreparedness exercises and trainings• Objective 2: Coordinate with MET, city, county,regional, state and federal agencies as appropriate• Objective 3: Review member agency, WEROC andOperational Area plans

Strategy 4 ‐ Ensure the effectiveness of theWEROC continued…• Objective 4: Respond to emergencies as required , oras beneficial for learning purposes• Objective 5: Ensure that the WEROC is staffed andready to support emergency operations• Objective 6: Conduct outreach and communicateWEROC benefits to county, regional and statestakeholders

Strategic Goal Statement #3Financial Stewardship“MWDOC will be a prudent manager of the financialresources, assets, human talent, and rate settingauthority entrusted to it and pursue fundingopportunities for the service area”

Strategy 1 ‐ Ensure financial activities areaccurate and transparent• Objective 1: Obtain unqualified audit every year• Objective 2: Prepare and submit a monthly investment andfinancial report (Treasurers report) for Board review• Objective 3: Leverage the new financial system to provideprogress reports to the Board on key capital and operatingprojects• Objective 4: Provide monthly reporting , semi‐annualforecasting of performance compared to budget anddetailed quarterly discussion with the Administration andFinance Committee• Objective 5: Provide transparent and easy public access todistrict financial information

Strategy 2 ‐ Use technology to drive efficiency• Objective 1: Develop a landscape database tostreamline reporting, track water savings, andfacilitate quality control measures• Objective 2: Ensure the MWDOC website reflectscurrent information, programs and issues• Objective 3: Optimize the financial software tofacilitate management decision making• Objective 4: Use the grant module in the newfinancial system to manage grant activity

Strategy 2 ‐ Use technology to drive efficiencycontinued…• Objective 5: Evaluate full GIS capability• Objective 6: Evaluate costs/benefits to publiclybroadcast committee and board meetings• Objective 7: Evaluate technology opportunitiesto improve outreach and education programs

Strategy 3 ‐ Manage district budget and assetsto efficiently achieve the District's priorities• Objective 1: Maximize MET, State and Federal grants for ourservice area (e.g. CEC funding for energy/water savings)• Objective 2: Develop new public/private partnerships toreduce costs to the ratepayer• Objective 3: Review District operations to increase efficiencyand reduce costs• Objective 4: ID opportunities for cost sharing w/ otheragencies• Objective 5: Develop a long range finance plan to support thestrategic review including potential new sources of revenue• Objective 6: Develop a "choice" budget

Strategy 4 ‐ Attract and retain a high quality efficientworkforce to achieve the strategic review goals• Objective 1: Develop career progression for staff• Objective 2: Develop a mentoring program for staffdevelopment• Objective 3: Develop a staff skills inventory• Objective 4: Evaluate need for and construct of atraining program (including cross‐training)• Objective 5: Develop a succession plan• Objective 6: Document workflow plans for eachposition

Strategic Goal Statement #4Communication:“MWDOC will engage and understand its MemberAgencies and the communities it serves in order tomeet their water needs and ensure that thesecommunities understand the waterchallenges faced by the region”

Strategy 1 ‐ Strengthen relations with memberagencies• Objective 1: Actively engage member agencies inmonthly manager meetings to provide information andsolicit comments and input on key items• Objective 2: Conduct other meetings as appropriate(e.g. water use efficiency, public affairs workgroup,elected officials meetings, etc.)

Strategy 1 ‐ Strengthen relations with memberagencies continued…• Objective 3: Increase Director and staff presence atmember agency Board, Council and other memberagency leadership meetings• Objective 4: Increase frequency of individual (Directorand staff) contacts to strengthen personal relationshipsand dialogue• Objective 5: Conduct an annual member agencymanager meeting to focus on long term OC waterchallenges• Objective 6: Maintain staff accessibility andresponsiveness to member agencies

Strategy 2 ‐ Support the Board of Directors toFacilitate Informed Policy/Decision Making• Objective 1: Support Board and committee meetings• Objective 2: Optimize effectiveness of Board calendar• Objective 3: Organize Board Workshops and/oridentify key outside educational opportunities forBoard information on key policies or issues

Strategy 3 Develop effective communityoutreach• Objective 1: Tailor messages, communication channelsand outreach efforts to address target market needs• Objective 2: Participate in community events incoordination with our member agencies• Objective 3: Sponsor outreach events with targetedemphasis (e.g. OC Water Summit, inspection trips,water policy dinners)

Strategy 3 Develop effective communityoutreach continued…• Objective 4: Implement the Board adopted socialmedia policy• Objective 5: Conduct surveys to measure effectivenessof programs and services• Objective 6: Ensure communications materials areconsistent with the strategic review• Objective 7: Evaluate school program effectiveness

Strategy 4 ‐ Ensure that MWDOCs local, state andfederal officials understand OC water issues• Objective 1: Advocate for OC water issues by conductingtimely and consistent briefings with key legislators/staff• Objective 2: Develop position statements and seeksupport or sponsorship for key legislative positions• Objective 3: Track and engage on regulations/legislationand other administrative actions that may impact OCwater• Objective 4: Coordinate with legislators to maximizefunding opportunities for OC• Objective 5: Build coalitions to support OC waterpositions (e.g. desalination)

Strategy 5 ‐ Engage local, state, and federalregulators on regulations affecting OC water• Objective 1: Advocate for science based regulations• Objective 2: Advocate for streamlined permitting• Objective 3: Develop professional relationships withkey regulators• Objective 4: Bridge and develop relationships/allianceswith organizations that share common interests• Objective 5: Engage and participate with coalitions tofurther regulatory reform

Strategy 6 ‐ Ensure all MWDOC staff areinformed on District priorities and activities• Objective 1: Continue and promote forums to fosteropen staff communications• Objective 2: Develop improved internalcommunication tools

Next Steps• Finalize and Adopt – October 20, 2010• Develop scorecard –November 30, 2010• Report on progress to the board –March 16, 2011

Questions?Thank you!

Item No. 6-2ACTION ITEMOctober 20, 2010TO:FROM:Board of DirectorsAdministration & Finance Committee(Directors Thomas, Royce, Barbre)Kevin HuntGeneral ManagerStaff Contact: Cathy Harris,Admin. Srvc. Mgr. & Sarah Sherman,Records CoordinatorSUBJECT: AMENDMENT TO ADMINISTRATIVE CODE SECTIONS 11100 TO 11104REGARDING RECORDS RETENTION/DESTRUCTION SCHEDULESTAFF RECOMMENDATIONStaff recommends the Board of Directors approve the revisions to the Administrative CodeSection regarding the District’s Records Retention/Destruction Schedule, as presented.COMMITTEE RECOMMENDATIONCommittee concurred with staff recommendation.DETAILED REPORTSince 2005, the District has been filing all relevant District documents electronically into theDistrict’s Records Management System (LaserFiche). The System currently contains32,785 records with a page count of just over 302,000.Staff is continuing to work with all Departments in evaluating current records anddetermining whether to archive the record and for how long. In assisting staff to make thisdetermination, the District’s Records Retention/Destruction Schedule is used.The purpose of the Records Retention/Destruction Schedule is to maintain, retain anddispose of District records while complying with legal requirements and the needs of theDistrict. Upon evaluation of the existing records, working with various staff, and utilizing theRetention/Destruction Schedule, it was determined that revisions to the RecordsRetention/Destruction Schedule is necessary in order to be more consistent with the currentdocument workflow.

Action Item Page 2In ensuring that records are maintained in a sufficient manner and consistent with mandatedretention periods, staff coordinated with Labor Counsel (Liebert, Cassidy & Whitmore) onrevising the document and ensuring all compliance requirements are met.Attached is a redlined version of the District’s Records/Retention Schedule for review.Some of the key changes include:• Language added to the purpose of the policy, explaining that District records will beinventoried and the manner in which non-records and obsolete records will behandled.• Removal of the term “Microfiliming” (this method is obsolete)• Addition of language on the manner in which records will be handled when they arestill needed for reference and are kept beyond the retention period.• Addition of Electronic Mail (E-Mail) Retention Policy. Policy clarifies the emails thatmust be kept in accordance with the Retention Schedule and those that are notrequired for filing in the LaserFiche system.At this time, staff is recommending the Board of Directors approve the revisions to theAdministrative Code Section regarding the District’s Records Retention/DestructionSchedule, as presented.

Item No. 6-3ACTION ITEMOctober 4, 2010TO:Planning and Operations Committee(Directors Royce, Clark, Hinman)FROM:Kevin Hunt, General ManagerStaff Contact: J. Berg, WUE Programs MangerSUBJECT:Pilot Turf Removal Rebate Incentive ProgramSTAFF RECOMMENDATIONStaff recommends the Board of Directors authorize:1. MWDOC’s Water Use Efficiency Department Staff to implement a Pilot Turf RemovalRebate Incentive Program,2. Utilize Metropolitan’s budgeted funds in the amount $294,559 as the source of therebate incentive funds.3. MWDOC’s Accounting Department to issue rebate checks to qualified residentialand commercial participants.COMMITTEE RECOMMENDATIONCommittee concurred with staff recommendation.SUMMARYOn May 11, 2010, Metropolitan’s Board approved their fiscal year 10/11 WaterConservation budget that included $5.5 million for Metropolitan-funded/member agencyadministered incentive programs. The purpose of this program is to allow flexibility formember agencies to implement projects specific to their service area and to explore newinnovative projects. MWDOC’s share of the $5.5 million budgeted amount, based on retaildemand, is $715,000. MWDOC programs relying on this funding include:Budgeted (Y/N): Yes, via MET’sConservation Credits ProgramAction item amount: $294,559Budgeted amount: $294,559Line item:Fiscal Impact (explain if unbudgeted): Staff time to implement Program

Information Item Page 2• Pilot Turf Removal Rebate Incentive Program (Proposed) $294,559• Landscape Performance Certification Program $ 98,481• Industrial Process Water Use Reduction Program $125,000• Home Water Surveys/Residential SmarTimer Inspections $ 5,000• Landscape Survey Program/Commercial SmarTimer Inspections $135,000• Water Use Efficiency Program Expansion $ 56,600Staff requests authorization to proceed with the implementation of a Pilot Turf RemovalRebate Incentive Program (PTRRIP) using a combination of member agency and MWDOCstaff to administer the program. Member agencies will conduct pre- and post-retrofit siteinspections to measure the turf to be removed reserve rebate funds. MWDOC staff willreceive rebate applications, process pre- and post-inspection work orders, cut rebatechecks and report implementation to Metropolitan. This program was requested byMWDOC’s member agencies through discussions at the monthly Water Use EfficiencyCoordinator Meetings.The proposed program will provide $1.00 per square foot of turf removed in residential andcommercial settings. Member agencies can elect to provide additional funding to enhancethe rebate incentives for their service area if desired. As a new program, staff anticipatesapproximately 10 rebate incentive checks a month will be produced by MWDOC’sAccounting Department.DETAILED REPORTAt its April 2010 Water Use Efficiency Coordinator Meeting, staff surveyed the MWDOCagencies to see what new programs they would like to implement using the Metropolitanfunding. An incentive based turf removal program was overwhelmingly requested tocomplement our existing SmarTimer and Sprinkler Nozzle Rebate Programs. Following theMetropolitan programmatic requirements, MWDOC proposes to implement a PTRRIPaimed at removing up to 76,582 square feet of residential turf and up to 217,977 square feetof commercial turf by providing an incentive of $1.00 per square foot to qualifiedparticipants. If desired, member agencies can provide additional funding to increase therebate beyond $1.00 per square foot for their customers.Water SavingsIn late 2008, the Metropolitan/Member Agency Program Advisory Committee evaluated theefficacy of a turf removal program for the region. This evaluation included a review of similarprograms in other areas, including Southern Nevada Water Authority and North MarinWater District. The data from these similar programs showed an average water savings of44 gallons per square foot of turf removed per year. With an average landscape life of 10years, lifetime water savings would be 440 gallons per square foot. MWDOC has estimatedin both the commercial and residential sector, the proposed Program may removeapproximately 294,559 square feet of turf. If this target is reached, this Program would savemore than 397 acre-feet of water over the life of the Program.

Information Item Page 3Proposed Program FormatUsing the participation requirements established by Metropolitan as the foundation to theMWDOC Program, the participation process would include the following:• Using an application developed by MWDOC (Attachment A), a potential participantwould complete and mail the application to MWDOC,• MWDOC will process the application into a database and generate a preimprovementwork order notifying the appropriate retail water agency that a preimprovementsite visit to measure the turf area to be removed is necessary.• From the pre-improvement site visit data, one of two actions will be taken:o MWDOC will notify the applicant they are authorized to proceed withremoving the turf, oro MWDOC will notify the applicant they have been denied participation alongwith an explanation. This notification will be accomplished with retail wateragency involvement.• For those approved to participate, they will notify MWDOC once work is complete.• MWDOC will then generate a post-improvement work order notifying the appropriateretail water agency that a post-improvement site visit to measure the turf arearemoved is necessary.• From the post-improvement site visit data, MWDOC will generate a rebate checkrequest form notifying MWDOC’s Accounting Department to issue a rebate check inthe required amount.Conducting the site inspections is a requirement attached to the use of the Metropolitanrebate incentive. It will also be the mechanism to collect the actual square footage removedto accurately calculate the rebate payment. Once monthly, MWDOC Staff will reportimplementation to Metropolitan requesting reimbursement of issued rebate incentives.Rebate Check ProcessingBased on data gathered from similar programs, it is anticipated approximately 10commercial and 50 residential checks will be written through this pilot program. These 60rebate checks will be processed between October 20 and April 2011, a potential period ofsix-months, or 10 rebate incentive checks per month.Over $100,000 (out of the $217,977) of the commercial incentive funds have been set asidefor two commercial turf removal projects - one is a retail center in the city of Garden Groveand the other is a turf removal project at the East Bluff Homeowner’s Association inNewport BeachUsing the Planning and Operations Committee Department Activity log, Staff will keep theBoard informed of the level of rebate activity and should this level prove overwhelming, Staffwill return to the Board for guidance.Staff recommends the Board of Directors authorize implementation of the PTRRIP usingMetropolitan funding in the amount $294,559.

Turf Removal ProgramResidential/Commercial Application FormOFFICE USE ONLYPLEASE NOTE:1. ACCOUNT INFORMATIONProjects that have been started or are already completed prior to the completion of this rebate application and themandatory pre-inspection are not eligible. Forms are processed in the order in which they are received. This offer will bedistributed on a first-come, first served basis while funding lasts. To receive this offer, you must follow and satisfy allApplication Form Instructions and Terms and Conditions listed on the reverse side. Please sign, date, and return thisapplication, along with a copy of your most recent water bill, to: Turf Removal Program, c/o Municipal Water District ofOrange County, P.O. Box 20895, Fountain Valley, CA 92728-0895.Name on Water Account (See Water Bill): Water Agency and Account #:2. INSTALLATION ADDRESSFirst Name:Address:City:Last Name:Unit Number:Zip:Phone Number: Area Code NumberAssessor’s Parcel Number (APN):( )Property Type:Total Lot Size:Single Family Home Condo/Townhome Commercial HOAHow is the turf irrigated now?Automatic Sprinklers Manual Sprinklers Hand Water Other_______________________________________________What type of irrigation controller do you use?Automatic Controller Smart Controller None Other_______________________________________________3. REBATE CHECK INFORMATION (REQUIRED!)Make check payable to: First Name Last NamePayee Phone: Area Code Number( )Rebate Check Mailing Address (If different from Installation Address):Social Security or Tax ID Number4. CONTACT INFORMATION OF RESPONSIBLE PARTYContact Person: First Name Last Name Contact person is: (Check one)OwnerTenantDay Phone: Area Code NumberAlternate Phone: Area Code Number( )( )Best Time to Call:E-mail Address:5. SITE INFORMATION - RESIDENTIALFront Yard Sq. feet of turf to be removed: Back Yard Sq. feet of turf to be removed:Left Side Yard Sq. feet of turf to be removed: Right Side Yard Sq. feet of turf to be removed:Parkway (Permit may be required)Sq. feet of turf to be removed:6. SITE INFORMATION - COMMERCIALTOTAL SQ. FEET OF TURF TO BE REMOVED:TOTAL SQ. FEET OF TURF TO BE REMOVED:Contractor Company Name:Contractor Phone Number:Contractor Contact Name:Contractor Email:Contractor Mailing Address: City: State: Zip:SITE OWNER SIGNATUREI certify that the information on this Application is true and correct. I have read, understand, and agree to the TERMS ANDCONDITIONS of the Program on the reverse side. I have enclosed a copy of my water bill.Site Owner Signature:Print Name:Date and Place:

PARTICIPATION INSTRUCTIONSTurf Removal Program - Terms and ConditionsPlease carefully read the instructions and guidelines below.Projects that have been started or are already completed prior to the completion of this rebate application and the mandatory preinspectionare not eligible.Please complete all sections of the application and return it – along with a copy of your recent water bill, to:Turf Removal Programc/o Municipal Water District of Orange CountyP.O. Box 20895Fountain Valley, CA 92728-0895Once we receive, review, and approve your application, you will be contacted within two weeks to schedule the MANDATORY Pre-Inspection.Once your Pre-Inspection is complete, the results will be forwarded to the Program staff. If your site qualifies, a follow-up letter and authorization toproceed will be mailed/emailed out to you within a few days. Upon receipt of this authorization to proceed, you may begin your project. You will havesixty (60) days to complete the work.Once all work is complete, you must contact the Program Administrator via e-mail at SRamirez@mwdoc.com to indicate that the work is completedand to schedule your MANDATORY Post-Inspection.After the final, MANDATORY site visit and verification of the amount of turf removed, your rebate check will be issued and mailed to you within four (4)weeks.All work performed in association with this Project, including the Post-Inspection, must be completed by March 31, 2011.Upon completion, the converted area must meet the following requirements:o The area does not include any live or synthetic turf.o If a watering system is used, it must be a low flow system (drip or bubblers). If part of a lawn is converted, the sprinkler system must be properlymodified to provide adequate coverage to the remaining lawn without spraying the converted area.o All exposed soil must be covered with a 2-3” layer of mulch, except in areas planted with creeping or rooting groundcovers or directly seeded.o Impermeable surfaces (hardscape) are not covered by the rebate. Converted areas must be permeable to air and water. Weed barriers must bepermeable. Concrete, plastic sheeting, or other impermeable surfaces do not qualify.o No invasive plant species are used.MWDOC and/or your retail water agency reserve the right to take photos of landscapes prior to, during, and after being renovated through this TurfRemoval Program and to use those photos for reproduction or promotional purposes.By signing this application, you are authorizing your retail water agency to release your water consumption history and data.All potential participants should review the following Eligibility Guidelines, Program Terms, and Disclaimer:ELIGIBILITY GUIDELINESRebates are available for residential and small commercial properties that have received a Pre-Inspection, an authorization to proceed, and a Post-Inspection. Projects that have been started or already completed prior to receiving authorization to proceed are not eligible.The property must receive water service from a participating retail water agency.Areas to be converted must have live turf being irrigated with potable water at the time the authorization to proceed is issued. Areas irrigated withrecycled water are not eligible.Conversions, including historic sites, must comply with all applicable laws, ordinances, codes, policies, covenants, conditions, and restrictions.Commercial properties with a project area of 2,500 square feet or more are subject to the terms of their local agency’s landscape ordinance.Since funding is limited, this OFFER IS LIMITED and is available on a first-come, first-served basis to eligible participants only while funding lasts.YOU MUST SUBMIT YOUR APPLICATION PRIOR TO JANUARY 31, 2011.IN ORDER FOR THE REBATE TO BE ISSUED TO YOU, ALL PROGRAM GUIDELINES MUST BE MET, INCLUDING COMPLETION OF YOURPOST-INSPECTION, PRIOR TO March 31, 2011.PROGRAM TERMSOnly one Turf Removal rebate per address will be issued. Please apply for the maximum area you plan to convert.At minimum of 250 square feet of turf must be removed. Projects less than 250 square feet will only qualify if they will completely eliminate turf from aproperty.A maximum of 10,000 square feet of turf may be removed. Projects over 10,000 square feet will be considered by the Program Administrator on a caseby-casebasis. HOAs are eligible to participate up to a maximum of 10,000 square feet.Authorizations to proceed are valid for sixty (60) days, Projects must be completed and the final inspection scheduled prior to the authorization expiring.Rebates may be considered taxable income and a signed W-9 form will be required for rebates of $600 or more. Municipal Water District of OrangeCounty, Metropolitan Water District of Southern California, and your local retail water agency are not responsible for any taxes that may be imposed as aresult of your receipt of any rebate.Converted areas are subject to mandatory Pre and Post-Inspections. If the Pre and/or Post-Inspections cannot be scheduled or completed during theprogram term, your rebate will not be approved and/or issued.The converted area must remain in compliance with all program conditions for a period of five (5) years. If this requirement is violated, you may berequired to refund all or a portion of the rebate. This requirement is void upon transfer of ownership.DISCLAIMERNeither the Municipal Water District of Orange County, the Metropolitan Water District of Southern California, your retail water agency, or theircontractors or agents, makes any representation or warranty regarding the contracted services or products that may be installed under this Program.Removal of turf and installation of water efficient devices and plants does not guarantee reduced water use.By participating in the Program, you thereby waive and release the Municipal Water District of Orange County, the Metropolitan Water District ofSouthern California, your retail water agency, and their contractors and agents, from any and all claims and causes of action arising out of the removal ofturf and/or the purchase, installation, or use of devices in connection with this Turf Removal Program. Any claim you wish to assert based upon anydefect or failure of performance of any contracted service or installed product or device provided for your property should be pursued with the contractoror manufacturer/distributor.The Municipal Water District of Orange County, the Metropolitan Water District of Southern California, and your retail water agency only enforce theterms and conditions of the Turf Removal Program. The Program participant is responsible for complying with all applicable laws, codes, policies,covenants, conditions, and restrictions that may apply. Quality and appearance of the converted area is the responsibility of the participant,This Program sponsored by the Municipal Water District of Orange County, the Metropolitan Water District of Southern California, and your local retail water agency

Item No. 6-4SOUTH ORANGE COASTAL OCEAN DESALINATION PROJECTACTION ITEMOctober 20, 2010TO:FROM:Planning and Operations Committee(Directors Royce, Clark and Hinman)Kevin Hunt, General ManagerStaff Contact: R. Bell/K. SeckelSUBJECT: South Orange Coastal Ocean Desalination ProjectPhase 3 Extended Pumping and Pilot Plant TestingAdditional Pilot Plant Testing for Iron/Manganese Removal andRelated AuthorizationsSTAFF RECOMMENDATIONStaff recommends the Board of Directors authorize the General Manager to approve costauthorizations in the amount of $444,902, as follows:1. To Separation Processes, Inc. totaling $434,912 in the following amounts forspecified servicesa. $404,457 for New AWT (Advanced Water Treatment) Pilot Plant Testing forremoval of iron and manganese to be funded from a new U.S. Bureau ofReclamation WaterSMART grant.b. $4,184 for addition of a security system to the Mobile Test Facility.c. $16,427 for additional sampling services to support on-going radiumisotopic testing by Dr. Matt Charetted. $9,844 for installation of a sand separation device and for sandmeasurement2. To Chambers Group for CEQA/NEPA and permitting support for the New AWTpilot plant units in the amount of $4,000.3. To Geoscience Support Services for analysis of the drawdown effects ongroundwater levels from Phase 3 extended pumping through September 2010 inthe amount of $5,990.FUNDING FOR THESE PROJECTS IS COMING FROM THE SOCOD PARTICIPANTSOR GRANT FUNDS, NOT FROM MWDOC.

Committee Item Page 2COMMITTEE RECOMMENDATIONCommittee concurred with staff recommendation.SUMMARYThe full scale slant well feed water system is predicted to produce on average about95% ocean water and 5% brackish groundwater. Brackish groundwater in the San JuanCreek system has fairly high levels of iron and manganese. It is anticipated that underthe full scale ocean desalination project operation, low levels of oxidized iron andmanganese will likely be produced by the slant wells. To avoid membrane fouling fromiron and manganese oxides, cost-effective process controls and/or removal methods willlikely be needed prior to reverse osmosis. The current Phase 3 test facility is set up toevaluate iron and manganese concentrations in the produced water from the test slantwell and control of oxidation via a nitrogen envelope in the well. The use of bag andcartridge filtration will also be tested to determine their effectiveness in removal of ironand manganese, and the RO system for membrane autopsy will be used for analysis offoulants.We submitted a grant application on June 29, 2010 to the U.S. Bureau of Reclamation(Reclamation) for “WaterSMART 2010 Advanced Water Treatment Pilot andDemonstration Project Grants”. The Board approved submittal of the grant applicationby Resolution No. 1887.On August 12, 2010 MWDOC received notice from Reclamation that our application wasselected for award under this competitive solicitation. We received the grant award inthe amount of $500,000 less $1,000 for Reclamation NEPA processing for a total awardof $499,000. The eligible local match for this work is $751,000 of participant projectfunds used in the design and construction of the Mobile Test Facility, for a total grantproject amount of $1,250,000.Our application was one of four projects selected for this program. The other three grantrecipients were West Basin MWD, Los Angeles County Sanitation Districts, and LosAngeles Department of Water Power. Reclamation with MWDOC’s assistance is in theprocess of completing the grant award contract. We anticipate receiving the executedgrant agreement sometime within the next few weeks.For the grant work, new pilot plant test units will be installed adjacent to the existingMobile Test Facility and will be integrated into this facility to enable the testing work. Thiswork needs to be conducted by the same firm that is operating the Mobile Test Facility togain economy of operation and to avoid operational conflicts. Costs have beenestimated developed through equipment and installation quotes and time to conduct andevaluate this work. SPI’s estimated cost for this work is $404,457, which includesprocurement and installation of the new equipment at an estimated cost of $226,796.

Committee Item Page 3The Reclamation grant will also fund project management, permitting, CEQA/NEPA,technical review, electricity, and a small contingency totaling $94,543. The total grantaward is for $499,000. The overall budget is shown in the following table.The project schedule for this work is to have the new pilot pretreatment facilities installedand operational by February 2011 to coincide with the RO pilot plant testing start-up.Staff has already initiated permitting and CEQA work. Chambers Group will provideassistance for this work under a change order to their existing agreement. We will alsoneed to obtain approval from State Parks for this effort. We have already discussed thiswith State Parks staff and they see no problem with this small addition.

Committee Item Page 4Reclamation WaterSMART New AWT Pilot Plant Testing Project Grant BudgetBudget Item DescriptionComputationRecipient Reclamation$/Unit and Funding FundingTotal CostUnit QtySALARIES AND WAGESEmployee 1 - MWDOC Project Manager Richard Bell $ 65 600 $ 39,000 $ 39,000FRINGE BENEFITS - 31% per MWDOC 2010-11 budget $ 12,090 $ 12,090TRAVELEQUIPMENTWater Treatment Pilot Equipment - lease of MF & Media filterpilot (balance of equipment is in Contractor scope, below) $ 50,001 $ 50,001SUPPLIES/MATERIALSOffice SuppliesConstructionElectricity $ 5,000 $ 5,000CONTRACTUAL/CONSTRUCTIONEngineering - plans, specs, test plan, bidding, on site work,data analysis $ 139,967 $ 139,967Installation & Decommisioning Contractor - for pilot plant $ 100,000 $ 100,000Control & Monitor system mods $ 20,000 $ 20,000Operations - on-site operation and waste hauling $ 56,500 $ 56,500Technical Review Panel - QC of work $ 20,000 $ 20,000Laboratory Services $ 6,000 $ 6,000Slant Well Inspection, Testing, Redevelopment & Install Pump $196,654 $ 196,654Construction of Test Facilities $479,449 $ 479,449SDG&E Electrical Service Connection Charge $36,847 $ 36,847Prof Services - Construction & Start-Up/Shakedown $31,928 $ 31,928Subtotal Contractual/Construction Cost $ 744,878$ 744,878ENVIRONMENTAL AND REGULATORY COMPLIANCEPermitting and Approvals (CONTRACTOR) $ 10,000 $ 10,000NEPA EA/EID (EPA) Preparation $5,122 $ 5,122Bureau of Reclamation NEPA Processing $1,000 $ 1,000OTHER CONTRACTUAL COSTSReporting & Presentation $ 9,989 $ 9,989Corrosion Testing/Evaluation $ -Isotopic Analysis/Geochemistry $ -Miscellaneous - Engineering and Construction $ 11,000 $ 11,000Miscellaneous - Other $ 4,000Contingency - Engineering and Construction $ 11,000 $ 11,000Contingency - Other $ 4,453 $ 4,453Technical Advisory Committee $ -TOTAL DIRECT COSTS $ 751,000 $ 499,000 $ 1,250,000INDIRECT COSTS - NoneTOTAL PROJECT COSTS $ 751,000 $ 499,000 $ 1,250,000

Separation Processes, Inc.3156 Lionshead Ave., Suite #2Carlsbad, CA 92010Tel: 760-400-3660Fax: 760-400-3661www.spi-engineering.comSeptember 21, 2010Richard Bell, P.E.Municipal Water District of Orange County18700 Ward AvenueFountain Valley, CA 92708Subject: SOCOD Project – New AWT Pretreatment Pilot FacilitiesDear Richard,SPI is please to provide this proposal to amend its existing Phase 3 agreement to perform apretreatment study for iron and manganese removal in conjunction with the Phase 3 – ExtendedPumping and Pilot Plant Test Facility. These services will execute the Technical Projectdescription provided in the District’s grant application to the Bureau of Reclamation for thisproject (copy attached to this proposal). SPI’s proposed scope of work is described below:SCOPE OF WORKTask 1 – ENGINEERING SERVICESTask 1a – Support to Permitting EffortSPI will provide support to District staff in its effort to obtain various permits forthe project, including amendment to the Regional Board Discharge Permit andCoastal Commission.Deliverables: Data including discharge streams, chemical usage, site plan, powerconsumption.Task 1b – Development of Test PlanSPI will prepare an amendment to the existing Test Plan, providing a detailedprotocol for performance of the pretreatment testing program. SPI will lay out themethods and phases of testing necessary to generate the required data. SPI willsubmit a draft test protocol for review and comment by Project Management andTechnical Advisory Panel. The pilot testing protocol will include the followingtopics:• Problem statement• Definition of test objectives• Process description• Evaluation of AWT technologies and control methods

September 20, 2010Richard Bell, P.E. - MWDOCSubject: Pretreatment Study ProposalPage 2• Equipment requirements• Operating plan• Schedule• Data collection, water sampling and analytical requirements• Evaluation for extrapolation to full-scale conditions• QA/QC procedures• Responsibilities of all parties.Deliverables: Test Plan DocumentTask 1c – Data AnalysisSPI will provide compilation, trending and analysis of process operating data andwater quality analyses. Assessment of results will be provided relative to projectobjectives, including comparison of performance by various treatment methodsand recommendation for full-scale implementation.Deliverables: Data AnalysisTask 2 – Leased Equipment ProcurementSPI will procure and/or lease the major process equipment required during testing.This includes media filter and membrane filtration systems for four months each.Quotes will be obtained from multiple suppliers to ensure the project expensesreflect competitive pricing.Deliverables: Media Filtration and Membrane Filtration Pilot EquipmentTask 3 – Equipment Procurement and InstallationTask 3a – Procurement DocumentSPI will prepare detailed procurement documents and solicite bids from generalcontractors (GC) for site preparation (including grading, gravel, fencing, shadecovers, electrical etc), ancillary equipment procurement, installation,commissioning and startup. Draft procurement documents will be provided forreview to the Project Manager.Deliverables: General Contractor Bid DocumentsTask 3b – Controls and Monitoring System IntegrationThe pretreatment system controls will be integrated into the existing Mobile TestFacility control and monitoring system

September 20, 2010Richard Bell, P.E. - MWDOCSubject: Pretreatment Study ProposalPage 3Task 3c – Retain General Contractor and Construction ManagementSPI will receive competitive bids from a minimum of three general contractors.SPI will be responsible for contracting with and management of the GC at the site(site construction, equipment installation, commissioning and startup).Deliverables: Execute GC ContractTask 4 – Pilot Testing OperationSPI will be responsible for pilot plant operation, providing day-to-day operationby a field engineer(s). SPI will be responsible for equipment maintenance,consumables, data collection, field analyses and water sample collection for offsitewater quality analyses. SPI will review operating data and provide oversightsupervision for adherence to the Test Protocol and decision making for anychanges to operating conditions. MWDOC will provide electrical service to thesite and pay monthly electrical fees..Deliverables: Operation and Field Analytical Data CollectionTask 5 – Laboratory ServicesSPI will contract with qualified laboratories for analytical services defined in theTest Plan. An allocation of $10,000 has been made for outside analytical services.Deliverables: Laboratory Analyses ResultsTask 6 – ReportingSPI will include the pretreatment study in its monthly project status memos.Likewise the pretreatment study will be included in the Draft/Final report at theend of the study. Additionally, SPI will support the Project Manager with contentfor Bureau of Reclamation Grant specific reporting, in accordance withReclamation report formatting requirements.Deliverables: Monthly status memos; Draft and Final Report; content for BofRreporting

September 20, 2010Richard Bell, P.E. - MWDOCSubject: Pretreatment Study ProposalPage 4Personnel for this study will include the existing SPI/CDM/ES Phase 3 team members,augmented with support from Dr. Mark Williams (WMI) for iron removal strategies andimplementation.The proposed fee schedule (Attachment B) is attached indicating a total not-to-exceed amount of$404,457. An updated project schedule is included as Attachment CPlease contact me with any questions regarding this proposal.Gerry FilteauPresident

Attachment “A”Section 3 of MWDOC 2010 WaterSmart Grant ApplicationTechnical Project DescriptionIntroductionThe slant well intake is a novel approach to providing a high-volume seawater source fordesalination, which avoids many of the environmental impacts of an open intake andprovides a level of natural filtration. The slant well draws water from an under-seaaquifer, which is largely replenished from the ocean water above the well. However,some percentage of the water drawn into the slant well is lower salinity brackish waterfrom inland aquifers or surface sources. This results in a well output which has a TotalDissolved Solids (TDS) lower than ocean water.The presence and source of this brackish contribution is very site specific and may besubject to seasonal variations. Additionally, the pumping rate of both the slant well andpumping of inland wells will impact the relative contribution of ocean water and brackishwater. While the slant well or other coastal well waters are mostly ocean water, they willreflect the make-up of the brackish water contribution. It is not uncommon for thebrackish contribution to include high concentrations of iron and/or manganese. Whileiron and manganese are generally in a reduced highly soluble form in an inland aquifer,the ocean water contribution may contain sufficient oxygen to oxidize these constituentsto their less soluble form. This could result in particulate and/or colloidal iron andmanganese in the slant well water.The reverse osmosis desalination process is designed for operation on a stream containingminimal suspended solids. Suspended and colloidal solids will tend to deposit on the ROmembrane surface (fouling), impeding the flow of water through the membrane. WhileRO membranes will remove both iron and manganese, regardless of what state the metalsare in, oxidized forms of these metals may cause fouling of the membrane, resulting inoperational difficulties, frequent chemical cleanings, and increased operating costs. Thepresence of suspended solids requires consideration of pretreatment process step(s) toachieve stable RO performance. The proposed work includes characterization of theoutput from the slant well with regard to salinity, oxygen, iron and manganese. Thischaracterization will identify trends as the well is pumped over time. It is anticipated thatover time, the slant well will draw an increasing proportion of ocean water and lessbrackish groundwater. While this will likely result in trending lower iron and manganeseconcentrations, there is the possibility of higher oxygen concentrations. This dynamicsituation results in the possibility of iron or manganese precipitation over some or all ofthe range of conditionsThe goal of this research is to assess various operating approaches and treatment methodsfor addressing the specific water quality challenges presented by coastal wells. The slantwell for this pilot project operates at 2,000 gpm, but it is not certain it will reach steadystate water quality conditions (anticipated to be 95% seawater) during the course of the18 month operation. Additionally, in the short-term the natural reductive properties of

the seafloor aquifer materials may prevent movement of oxygen to the well. As such,the demonstration well may not achieve the oxygen concentration of a steady stateproduction well. Therefore, the study will include periods of controlled aeration to assessthis condition.The overall objectives of the alternative pretreatment testing are to:• Demonstrate the effectiveness of the pretreatment scheme for meeting theDistrict’s water quality goals• Optimize the operation of the component treatment process to obtain full-scaledesign criteria• Evaluate and compare the use of different pretreatment options for iron andmanganese removal, minimization of membrane fouling, and overall costeffectivenessProject BenefitsAgencies which consider large-scale implementation of seawater desalination mustconsider the feasibility of all intake approaches for their project, considering site andproject specific factors. These options generally include consideration of coastal wells,either slant or vertical, which would draw from a mixture of seawater and inland brackishsources. While the effect of drawing the sourcewater through the sand providessubstantial natural filtration, it is common to find higher concentrations of iron andmanganese in the well water, which may present operational challenges to thedesalination process. This operating scenario was not yet received controlled engineeringinvestigation. This study will provide the desalination community with a body of datacharacterizing the water quality shifts during pumping of the slant well and theeffectiveness of several pretreatment approaches on RO performance. This data willallow for a higher confidence level in project planning and implementation for projectsusing coastal wells.Facility DescriptionThe pilot testing facilities will investigate three approaches for operation of RO on theslant well output. The facility is equipped with a reverse osmosis system operating seven4-inch diameter membrane elements in series. Several operating cases will be assessedwhich vary the RO pretreatment approach. Figure 1 provides a process diagram of eachcase. Figure 2 provides a plan sketch of the site layout.

MembraneFiltrationFigure 1

Figure 2Pilot Facility Site

Case A – Base CaseCase “A” (Base Case) will assess the performance of two stage cartridge filtration (100micron and 5 micron) upstream of the RO membranes. This approach relies on agenerally anoxic feedwater condition, allowing the iron and manganese to remain insolution, with no adverse impact on RO performance. Low concentrations of particulateswill be captured on the cartridge filters. To prevent introduction of oxygen into thefeedwater at the wellhead, the impact of maintaining a nitrogen blanket in the wellheadwill be assessed.Case B – Oxydation with Media FiltrationCase “B” will investigate the removal of iron and manganese using oxidation with mediafiltration. These technologies are well established for brackish water conditions.However, operation in a near seawater salt matrix may substantially influenceperformance and is the subject of this investigation. Likewise the past experience withthese processes as RO pretreatment be considered in the development of the test plan.Three types of media will be tested.• Case B-1 - Greensand• Case B-2 - Pyrolusite (manganese dioxide)• Case B-3 - Conventional granular mediaCase B-1 - GreensandGreensand is a sand media coated with manganese dioxide (pyrolusite). Permanganateaddition is often required in the early stages of the filter operation to condition the media.The permanganate addition can often cease upon build up on the media being achieved,however, many greensand facilities continue to operate with permanganate continuously.The purpose of the greensand testing is to evaluate oxidation of both iron and manganese,using greensand to catalyze oxidation and remove the oxidized metals. This is the processused most commonly for removing iron and manganese from groundwater and iscurrently being used at a full scale brackish water desalination plant in San JuanCapistrano, CA.This process would remove iron and manganese prior to desalination, however, theprocess requires a dechlorination step, using sodium bisulfite ahead of the ROmembranes, to prevent oxidation damage to the membrane. Sodium hypochlorite will beused to oxidize iron and manganese in the raw water prior to filtration. Sodiumpermanganate may also be utilized if insufficient iron and manganese removal isachieved with hypochlorite alone. While oxidation of manganese using chlorine can takein excess of 30 minutes to occur, greensand media has proven effective at acceleratingthis process to occur within seconds.Since chlorine oxidation is a common concern for RO manufacturers, sodium bisulfitewill be added to the filtered water upstream of the equalization tank to quench theresidual chlorine to prevent damage to the RO membranes.The test will be conducted over a 30 day continuous run period including a two-weeksteady state evaluation period with the RO operating downstream.

Case B-2 - PyrolusitePyrolusite is a pure manganese dioxide filter media, similar to greensand, but without thesand serving as a ballast to the manganese dioxide. The benefit of utilizing a puremanganese dioxide product is that permanganate does not need to be used in conjunctionwith the media and better manganese removal has been reported. One of the challengeshowever, is the difficulty in maintaining properly functioning media filters. The operationof the pyrolusite media filters also require a relatively high backwash rate (25 gpm/sf)and possible air scour systems required to remove iron oxides and organic matter fromthe dense media.The purpose of this testing is to evaluate chlorine oxidation of both iron and manganese,using a pure manganese dioxide (pyrolusite). This process is used commonly forremoving iron and manganese from groundwater, and has been pilot tested for a brackishwater desalination process. In this testing, the chlorine feed with the pyrolusitepretreatment process oxidized and removed 100 percent of the total iron andapproximately 70 percent of total manganese.This process would remove iron and manganese prior to desalination, however, theprocess requires a dechlorination step, using sodium bisulfate ahead of the ROmembranes, to prevent damage to the membranes.Sodium hypochlorite will be used to oxidize iron and manganese in the raw water prior tofiltration. While oxidation of manganese using chlorine can take in excess of 30 minutesto occur, pyrolusite based media have proven effective at accelerating this process tooccur within seconds. This case will use a pyrolusite media, such as Pyrolox or Laynox.The test will be conducted over a 30 day continuous run period including a two-weeksteady state evaluation period with the RO operating downstream.Case B-3 -Aeration plus Conventional Granular Media FiltersThe purpose of this testing is to evaluate aeration oxidation of iron, but not manganese,using a dual media filter, with a mix of sand and anthracite.An educator and three static mixers will be used to oxidize iron in the raw water prior tofiltration, while leaving manganese in the non-oxidized state. This approach is possibledue to the slow oxidation rate of manganese (over 20 hours) compared with iron (lessthan 10 minutes) when using aeration. Aeration plus media filtration has been shown toeffectively oxidize and remove iron at a brackish water pilot plant when a minimum ofsix minutes of contact time was provided. Complete oxidation of iron with aeration wasaccomplished with nearly zero minutes of contact time when the pH was adjusted to 8.0through the addition of caustic soda.This alternative would not require sodium bisulfite to quench chlorine, and thereforepresents a lower risk of damage to the RO membranes.The test will be conducted over a 30 day continuous run period, including a two-weekevaluation period with the RO operating downstream.Case C - Membrane FiltrationThe purpose of this testing is to determine how chlorination will impact the form of ironand manganese, as well as the effectiveness of membrane filtration (MF) to remove eachconstituent. While membrane filtration is well demonstrated as a technique for particulateremoval, the kinetics of iron and manganese oxidation in conjunction with the filtration

has been shown to be critical. Additionally these reactions in a seawater type water hasnot been demonstrated previously.Previous pilot testing on a brackish well supply at the city of Camarillo, CAdemonstrated that with aeration prior to an MF pretreatment process, the iron was onlypartially oxidized by the dissolved oxygen (DO) in the contact tank within the 3 – 36minutes of contact time tested. Additional oxidation of iron was observed within the MFbasin and post-MF precipitation captured on the cartridge filters. The rate of iron andmanganese oxidation was sensitive to the contact time and the concentration of DO in thewater. For the aeration followed by MF pretreatment process to completely oxidize andremove the iron, it was determined that the pretreatment feed water must be saturated anda full-scale application would require a large tank to provide the necessary contact time.The testing scheme proposed for this study will look at an alternative oxidizer todetermine if MF can provide acceptable iron and/or manganese removal. The MF testingwill last 90 days, including 30 days demonstration with RO operating downstream.These pretreatment approaches also play into the broader considerations of achievingpathogen removal requirements for production of potable water. Each well source mustbe assessed for whether it is under the influence of surface water, which would imposesurface water treatment regulations. In that event, a multi-step pathogenremoval/inactivation approach must be developed. Some of pretreatment technologiesdiscussed here can become elements of that pathogen removal strategy.Task 1 – Project ManagementThe Project Manager will be responsible for overall oversight of the work, includingdevelopment of the project schedule, regular progress reporting, adherence to the projecttest plan and final reporting. The project manager will also convene a Technical ReviewPanel to review project deliverables and periodically review progress.Task 2 - DesignPrepare test facility design documents, including equipment specification, P&I drawings,site layout plan drawings and installation contractor bid package.Task 3 – Test PlanPrepare a detailed Test Plan, which includes facility description, objectives, test protocol,schedule, responsibilities of all parties, data requirements and QA/QC.Task 4 - Procurement and Installation of Test Facility EquipmentLease of pilot MF system and installation of all test equipment by installation contractor.Task 5 – Slant Well OperationThe slant well will be operated for 18 months. Water Quality will be monitored todocument trends in salinity and key constituents (TDS, Fe, Mn, turbidity, dissolved

oxygen, pH and silt density index) as the contribution of sea water increases (anticipatedto start at 5% and increase to a majority of seawater).Task 6 – Treatment Facility OperationThe RO system will commence operation during month 10 of the 18-month welloperation, demonstrating performance for each of the Case A-C scenarios (describedabove) as fully defined by the test protocol. These cases include cartridge filtration only,various oxidation / media filtration and membrane filtration approaches.Task 7 – Corrosion TestingThe project will include operation and monitoring of a corrosion test apparatus, whichexposes coupons of various metals to the slant well discharge. The rate of corrosion willbe measured periodically over the 18-month study to provide data for material selectionon a full-scale facility.Task 8 – Microbial Growth TestingThe project will include operation and monitoring of a test apparatus to providequantitative and qualitative determination of microbial growth in the slant well water.The test apparatus exposes coupons of various materials to the slant well discharge undercontrolled flow conditions. Coupons are periodically harvested rate of corrosion will bemeasured periodically over the 18-month study to provide data for material selection on afull-scale facility.Task 7 – ReportingQuarterly progress reporting and a Final Report (draft and final) will be prepared for theproject.

South Orange Coastal Ocean Desalination Project - Phase 3 Extended Pumping and Pilot Plant TestSeparation Processes, Inc.ATTACHMENT "B" (9/21/2010 rev 2)SPICDMM. WilliamsESLABBilling RatesTASK DESCRIPTIONProject Task Lead Lead Eng ODCTaskCDMROManager (SA) (MD)SPI Total Leader Sr. Eng Eng. ODC Total Dr. Williams Operator Maint Tech ES Total$180 $155 $135 Hours $215 $185 $155 Hours $190 $97 $180 Hours $Pretreatment EvaluationTask 1 - Engineering1a Permitting Support 10 20 30 14 14 0 44 $130 $6,9701b Develop Pretreatment Test Plan 2 20 20 42 2 12 60 74 24 0 140 $826 $23,4961c Data Analysis (5 month testing period) 8 35 43 16 16 48 80 24 0 147 $920 $25,285Total $55,750Task 2 Leased Equipment ProcurementEquipment -MF & Media Filter Leases $23,810 0 $23,810 0 0 0 $2,381 $50,001Total $50,001Task 3 - Equipment Procurement and Installation3a Equipment Procurement Documents 2 32 16 50 12 96 108 24 0 182 $1,083 $30,2233b Controls & Monitoring System Modifications $19,048 0 0 $952 $20,0003c Installation/Commissioning 20 60 80 40 40 24 40 40 184 $732 $26,5723c Equipment Installation Contractor $95,238 0 $4,762 $100,000Total $176,795Task 4 - Pilot Testing OperationOperation labor services & consumables 103 $21,157 103 32 32 110 21 131 266 $2,028 $56,500Total $56,500Task 5 - Laboratory ServicesLaboratory 0 0 0 $ 9,524 0 $476 $10,000Total $10,000Task 6 - Reporting & Other Contractural CostsDraft Pretreatment TM 4 16 8 28 20 80 100 10 0 138 $900 $23,180Final Pretreatment TM 2 4 6 8 4 12 0 18 $123 $3,563Reporting (B of R) 2 8 4 14 2 8 31 41 4 55 $374 $9,989Workshops (Two 4-hour workshops) 10 10 10 24 34 0 44 $279 $7,649Misc. ODC $10,505 0 $525 $11,030Total $55,411Total hours 22 118 266 406 28 96 411 535 110 150 21 171 1218TOTAL DOLLARS $ 3,960 $ 18,290 $ 35,910 $ 169,758$ 6,020 $ 17,760 $ 63,705 $ 23,810$ 20,900 $ 28,500 $ 3,990$ -$ 16,490 $ 404,457 $ 404,457TotalHoursSubconsultantMark-UpLine-itemTotalsTaskTotals

ATTACHMENT "C" (revised 9/21/2010)Pilot Plant Testing of Slant Well Seawater Intakes and AWTPretreatment Technologies for Control and Removal of LowLevels of Iron and Manganese2010 2011 2012Activity Start Finish A S O N D J F M A M J J A S O N D J F M A MPermitting Support 8/1/2010 1/15/2011Project Description and DesignDevelop Pretreatment Test Plan 10/1/2010 11/15/2011Prepare Equipment Procurement Docs 11/15/2010 1/15/2011Prepare Contractor Bid Package 11/16/2010 1/15/2011Site ConstructionContrator Bid/Award/NTP 1/15/2011 3/15/2011Construction 3/15/2011 4/30/2011Commissioning 5/1/2011 5/15/2011Pilot TestingCase A 5/15/2011 10/15/2011Case B‐1 5/15/2011 6/15/2011Case B‐2 7/1/2011 7/31/2011Case B‐3 8/15/2011 9/15/2011Case C 7/15/2011 10/15/2011Draft and Final Reports/Presentation 10/15/2011 1/31/2012

Separation Processes, Inc.3156 Lionshead Ave., Suite #2Carlsbad, CA 92010Tel: 760-400-3660Fax: 760-400-3661www.spi-engineering.comSeptember 21, 2010Richard Bell, P.E.Municipal Water District of Orange County18700 Ward AvenueFountain Valley, CA 92708Subject: SOCOD Project – Request for contract amendmentDear Richard,SPI requests consideration of the following additional scope items relative to the existingprofessional services agreement between MWDOC and SPI dated 3/1/2010.Task E – Security System and ServicesProvide burglar alarm services to the Mobile Test Facility, including obtainingcompetitive quotes, coordinating installation and maintaining 24 hourmonitoring/response service.Equipment: $688; service $57/mo.; 15 hours obtaining quotes and coordinatinginstallation.Total fee for Task E: $ 4,184Task 4a – Radium Isotope Testing – Sampling ServicesProvide additional labor and equipment to support monitoring well purgingrequirements and sampling of the Radium Isotope Testing procedures, as definedby Dr. Charette’s (WHOI) sampling protocol.Based on project RFP scope of work, two hours of support for each of sixsampling events was budgeted in the original agreement. Dr. Charette’s samplingprotocol requires extended purging of the monitoring well and disposal of thedischarged water. SPI’s revised scope includes providing a well pump, collectionand disposal of the discharge and a total of eleven man-hours on-site per sampling(two person crew), which is nine hours more than the original budget for each ofthe six sampling events (total of 54 hours additional). Pumping and disposalservice at $1,600 first sampling and $1,500 per sampling thereafter.Total Additional Fee for Task 4a: $16,427

September 21, 2010Richard Bell, P.E. - MWDOCSubject: SOCOD Project – Request for contract amendmentPage 2Task 4b – Sand MeasurementThe slant-well pump discharge has contained fine sand particles since start-up.This task proposes to add a sand separation device to the Mobile Test Facility toquantify the amount of sand being emitted and track this information over time.Device cost is $582. Breakdown of engineering hours is provided in attached feeschedule.Deliverables: Procure and install a sand separation test device, operate, collectdata and report.Total Additional Fee for Task 4b: $9,844Personnel for this study will be the existing SPI/ES Phase 3 team members. Attached is a feeschedule providing detailed breakdown of hours and expenses for each task.The proposed total not-to-exceed fee for Tasks E, 4a and 4b is $30,455.Please contact me with any questions regarding this proposal.Gerry FilteauPresident

South Orange Coastal Ocean Desalination Project - Phase 3 Extended Pumping and PilotPl t T tSPISeparation Processes, Inc.Amendment request 9/21/2010ESProject Task Lead Lead Eng ODCWell ROManager (SA) (MD)SPI Total Operator Operator Maint Tech ODC ES Total$180 $155 $135 Hours $112 $97 $180HoursTask 4a - Radium Isotope Testing Sampling ServicesSix (6) sampling events - additional time 30 30 24 24 54 $134 $6,872Monitoring well purging equipment and disposal fees $9,100 0 $455 $9,555Total $16,427Task 4b - Sand MeasurementInvestigate methods and procure device 4 $ 582 4 0 4 $29 $1,151Install device 1 1 3 3 4 $17 $488Operating protocol, operate, data collection 8 8 56 56 64 $314 $7,666Reporting 4 0 $0 $540Total $9,844Total hours 0 0 62 58 83 0 0 0 83 141TOTAL DOLLARS $ - $ - $ 8,370 $ 11,738$ 15,770 $ - $ -$ 1,052 $ 30,455 $ 30,455TotalHoursSubconsultantMark-UpLine-itemTotalsBilling RatesTASK DESCRIPTIONPretreatment EvaluationTask E - SecurityObtain Quotes and coordinate installation 15 15 0 15 $0 $2,025Equipment $ 688 0 0 0 $34 $722Sequirity service fees $ 1,368 0 0 0 $68 $1,436Total $4,184TaskTotals

September 21, 2010(3320)Richard Bell, P.E.Municipal Water District of Orange County10500 Ellis AvenueP.O. Box 20895Fountain Valley, CA 92728Dear Mr. Bell:Chambers Group is pleased to provide a cost to prepare and file a Notice of Exemption under CEQA forthe Iron and Manganese Pretreatment Study as part of the ongoing South Orange Coastal DesalinationProject Phase 3 Extended Pumping and Pilot Plant work. The Scope of Work also includes NEPA andpermitting support. The cost for this scope of work is $4000.The Scope of Work will be done under the Terms and Conditions of Chambers Group's existing contractwith the Municipal Water District of Orange County. If you have any questions I can be reached at(949) 261‐5414.Sincerely,CHAMBERS GROUP, INC.Noel Davis, Ph.D.Director of Marine Studies

September 21, 2010Mr. Richard Bell, P.E.Principal EngineerMunicipal Water District of Orange County18700 Ward StreetFountain Valley, CA 92708Re:Proposal for Geohydrological Services - Phase 3 Data CollectionPreliminary Analysis of Ground Water Drawdown EffectsDear Richard:As per your request, GEOSCIENCE is submitting the following cost proposal and scope of workto provide geohydrological services for preliminary analysis of ground water drawdown effects.Ground water level data will be analyzed from South Coast Water District’s (SCWD) recentlyconstructed nested monitoring well, MW-4 1 , as well as hand water level measurements collectedfrom other monitoring wells located throughout the lower San Juan Groundwater Basin.SCWD monitoring well MW-4 is located approximately 2,200 ft inland (i.e., upstream) from thetest slant well (SL-1), and has the potential for being affected by pumping of SL-1. For thepurpose of this proposal, it is understood that SCWD personnel will be downloading data fromthe transducers installed in MW-4S and MW-4D on a monthly basis.Once information has been forwarded to GEOSCIENCE, the data will be reviewed andtabulated, and will be added to the existing database that includes historical tidal data and groundwater levels from SL-1, MW-1S, MW-1M, 2 MW-2S and MW-2M. All data will be plotted using12Nested monitoring well MW-4 includes MW-4S screened from 39 to 89 ft bgs, and MW-4D screened from100 to 130 ft bgs.It is understood that during the Phase 3 testing, water level data from SL-1, MW-1S and MW-1M will becollected by Separation Processes, Inc. (SPI) through the mobile test facility (MTF) and will be forwardedto GEOSCIENCE.

Proposal for Geohydrological Services - Additional Phase 3 Data CollectionDownloading and Analysis of Water Level and Well Operational Data20-Sep-10the ground water level data collected from early June to late September, 2010 only with ananalysis of the drawdown effect from SL-1 on SCWD MW-4. The work contained in thisproposal is separate from ongoing NPDES compliance sampling, analysis and reporting inrelation to the Phase 3 long-term pumping tests for the test slant well.COST ESTIMATEThe estimated cost for GEOSCIENCE to perform the above scope of work is $5,990 as detailedin the attached Table 1.If you have questions or need clarification, please do not hesistate to contact me regarding thisproposal or any other matter.Sincerely,Dennis E. Williams, Ph.D.Presidentencl.GEOSCIENCE Support Services, Inc.2Municipal Water District of Orange County

Municipal Water District of Orange County Table 1Cost Proposal for Geohydrological Services - Additional Phase 3 Data CollectionDownloading Transducers and Analysis of Water Level Data from Test Slant Well and Monitoring WellsHOURSTask DescriptionPrincipalHydrologistSeniorGeohydrologistProjectGeohydrologistStaffGeohydrologistTechnicalIllustratorClerical LaborReimbursableExpenses 1TotalCostHourly Rate : $250 $165 $145 $110 $100 $751.0 Calibration, Maintenance and Downloading of Transducer Data1.1Obtain Data from SPI for PressureTransducers Installed in SL-1, MW-1Sand MW-1M for Data Collected fromEarly June to Late September 2010.1 2 $ 385 $ - $ 3851.2Obtain Data from SCWD for PressureTransducer Installed in MW-4S andMW-4D for Data Collected from EarlyJune to Late September 2010.1 2 $ 385 $ - $ 3851.31.4Download Data from PressureTransducers Installed in MW-2S andMW-2M for Data Collected from fromEarly June to Late September 2010.Update Ground Water Level ChartsUsing Data Received from SCWD andSPI for Monitoring Wells MW-1, MW-2, SL-1 and SCWD MW-4 inConnection with Ongoing Phase 3Pump Testing from Early June to LateSeptember 2010.1 1 8 $ 1,295 $ 125 $ 1,4202 8 18 $ 3,800 $ - $ 3,800Subtotal Task 1.0 3 11 0 30 0 0 $ 5,865 $ 125 $ 5,990Notes:1 Reimbursable expenses include report reproduction and mailing charges.21-Sep-10 Page 1 of 1 GEOSCIENCE Support Services, Inc.

Item No. 6-5SOUTH ORANGE COASTAL OCEAN DESALINATION PROJECTACTION ITEMOctober 20, 2010TO:FROM:Planning and Operations Committee(Directors Royce, Clark and Hinman)Kevin Hunt, General ManagerStaff Contact: R. Bell/K. SeckelSUBJECT: South Orange Coastal Ocean Desalination ProjectPhase 3 Extended Pumping and Pilot Plant TestingSCW Construction Contract and Intuitech Purchase Order - FinalChange Order Approvals, Accept Work As Complete, and AuthorizeFinal PaymentsSTAFF RECOMMENDATIONStaff recommends the Board of Directors approve the authorized change orders asapproved by Carollo Engineers to the SCW Constructors contract totaling $39,472.99 fora total contract amount of $518,921.99, accept the project as complete, and authorizepayment of the retention and make final payment upon execution of a close outagreement.Staff recommends the Board of Directors approve authorized change orders to theIntuitech procurement agreement in the amount of $9,509 for a total agreement amountof $340,942, accept the project as complete and authorize the final 10% payment. Inaddition, staff recommends the Board of Directors approve a change order to provideadditional training services to SPI in the amount of $2,848, bringing the total amount ofall work to $343,790.FUNDING FOR THESE PROJECTS IS COMING FROM THE SOCOD PARTICIPANTSOR GRANT FUNDS, NOT FROM MWDOC.

Committee Item Page 2COMMITTEE RECOMMENDATIONCommittee concurs with staff recommendation for Board Approval of the attached Resolutionaccepting work as complete, file a Notice of Completion for the SCW contract and authorizefinal payments to SCW and Intuitech.SUMMARYSCW was awarded the construction contract for installation of Phase 3 ExtendedPumping and Pilot Plant Testing facilities through a competitive bidding process at a lowbid at $479,449. MWDOC entered into a contract with SCW on September 14, 2009. AllWork was completed on September 7, 2010. Carollo Engineers provided constructionphase observation services and provided approval of change orders and progresspayments per the contract documents. Work was done in a very satisfactory manner andthe system has been performing well. Authorized change orders have amounted to$39,472.99 (8.2%) for a total contract cost of $518,921.99.SCW Change OrdersCOR 002 Removal of Extra Asphalt $2,355.20COR 004 Install Owner Furnished Materials $9,093.84COR 005 Pull Signal Cable and Wiring $4,219.24COR 007Extra Pipe & Fittings for$6,579.67ConnectionsCOR 008 T/M Pothole Unforseen Sea Wall $2,411.98COR 009 T/M Repair 10” Storm Drain $3,340.88COR 010 T/M Repair 1” PVC Waterline $2,858.54COR 011T/M Pilot Stairs & Clean Diffuser of $3,414.45SandCOR 012 Wellhead Repair Nitrogen & Noise $5,199.19Total Change Orders $39,472.99Contract Award Price $479,449.00Total $518,921.99Intuitech was retained under a procurement competitive contracting procedure in May2009 to build the Mobile Test Facility (MTF) for a price of $331,433. MWDOC enteredinto a purchase order agreement with Intuitech on August 26. 2009. Dr. Mark Williams ofWMI designed the MTF and provided oversight during assembly of the MTF. Authorizedchange orders for $12,357.00 were made upon recommendation of SPI during start-upand commissioning of the MTF at Doheny, for a total amount of $343,790. All systemsare now working properly. SPI has requested that Intuitech provide additional ROtraining upon start up of the RO testing work, scheduled in Feb/Mar 2011. Intuitech willalso provide final commissioning of the RO unit and “tuning” of the concentrate flowcontrol valve at no additional cost, per their proposal dated September 15, 2010.

Committee Item Page 3Intuitech Change OrdersCOR 01 Flood Alarm $4,511.00COR 02 Uninterruptible Power Supply $2,277.00COR 03 Travel Costs for COR 01/02 $2,038.00COR 04 Inlet Temp Transmitter $683.00COR 05 Additional Onsite Training $2,848.00Total Change Orders $12,357.00Contract Price $331,433.00Total $343,790.00

RESOLUTION NO. ________RESOLUTION OF THE BOARD OF DIRECTORS OF MUNICIPALWATER DISTRICT OF ORANGE COUNTY ACCEPTING THECONSTRUCTION OF THE SOUTH ORANGE COASTAL OCEANDESALINATION PROJECT EXTENDED PUMPING AND PILOTPLANT TESTING INSTALLATION OF TEST FACILITIESWHEREAS, the Municipal Water District of Orange County contractedwith SCW Constructors, Inc for Construction of “South Orange Coastal OceanDesalination Project Extended Pumping and Pilot Plant Testing – Installation ofTest Facilities” on September 14, 2009;WHEREAS, SCW Constructors satisfactorily completed all Workrequired under the Contract and subsequent change orders on September 7,2010;NOW, THEREFORE, be it resolved, that the Municipal Water Districtof Orange County Board of Directors accepts the Project and designates KevinP. Hunt, General Manager, to sign a Notice of Completion on behalf of theDistrict.Said Resolution was adopted on __________________, by the followingroll call vote:AYES:NOES:ABSENT:ABSTAIN:I HEREBY CERTIFY the foregoing is a full, true and correct copy ofResolution No. ________ adopted by the Board of Directors of Municipal WaterDistrict of Orange County at its meeting held on __________________.___________________________________Maribeth Goldsby, SecretaryMunicipal Water District of Orange County

Item No. 6-6ACTION ITEMOctober 20, 2010TO:FROM:Board of DirectorsAdministration & Finance Committee(Directors Barbre, Royce, Finnegan)Kevin HuntGeneral ManagerStaff Contact: Karl SeckelSUBJECT: Travel on Federal Initiatives Through the End of 2010STAFF RECOMMENDATIONStaff recommends the Board of Directors authorize travel as outlined.COMMITTEE RECOMMENDATIONThe Public Affairs & Legislation Committee will meet on October 18 and make arecommendation to the Board.DETAILED REPORTThe trip and travel cost count so far this year is as follows:ooOne staff member and Director Barbre participated in the Washington DC Februaryluncheon, which is typically allocated as an ACWA trip cost, although the primaryfunction is to host the Legislative luncheon.Additional travel by Director Barbre on our Federal initiatives has included threeadditional trips so far this year.o The total travel to date on Federal issues is approximately $5700.One more trip this year is anticipated to occur in the middle of November by DirectorBarbre. The purpose of the November trip is to finalize the funding requests during thelame duck session. Working closely with the CA SENATE and OC CONGRESSIONALdelegation post-election will ensure our funding requests are given top priority. Finally, keymeetings have been scheduled with legislators and committee staff who will be shaping thepolicies for the newly organized Congress in January 2011.Budgeted (Y/N): Yes Budgeted amount: $7,000Action item amount: n/aFiscal Impact (explain if unbudgeted):Line item: Staff and Board Travel

Item No. 6-7ACTION ITEMOctober 20, 2010TO:Public Affairs and Legislation CommitteeFROM: Kevin Hunt Staff Contact: Darcy M. BurkeGeneral ManagerSUBJECT:Jamba Juice Community Appreciation ProgramSTAFF RECOMMENDATIONStaff recommends that the PAL Committee discuss the Jamba Juice CommunityAppreciation Program and make a determination as to whether MWDOC should participate.In addition, staff recommends a partnering policy be developed to direct future developmentefforts.COMMITTEE RECOMMENDATIONCommittee (by a vote of 2-1) recommended staff be authorized to participate in the JambaJuice Community Appreciation Program and also suggested staff develop a partneringpolicy and present the Policy to the Committee at a later date.SUMMARYWater: Do More with Less is an outreach and education effort developed by the MunicipalWater District of Orange County (MWDOC) and the Family of Orange County WaterAgencies. The goal of this program is to raise water awareness and to encourage residents,businesses and the general public to improve their water use efficiency. The campaign wasdeveloped by the Family of Orange County Water Agencies, including the three cities toprovide a consistent and unified message. Funding for outreach and the campaign hasbeen reduced in order to minimize any financial impacts to MWDOC’s client agencies andto Orange County ratepayers. Jamba Juice is looking to partner with MWDOC through itsCommunity Appreciation Program whereby MWDOC would distribute swipe cards atcommunity events or other outreach efforts and when the card is presented at any JambaJuice, 10% or the proceeds would be returned to MWDOC to support the Water: Do Morewith Less outreach program, benefitting all of Orange County.DETAILED REPORTBudgeted (Y/N):Action item amount:Budgeted amount:Line item:Fiscal Impact (explain if unbudgeted):

Information Item Page 2In the last few years, private/public partnerships have become more common. Popularity ofthese efforts are a result of reduced funding, mutually beneficial outcomes and sharedgoals. Recent examples of these partnerships include the Poseidon Ocean DesalinationProject as well as Sacramento-based CPS Testing Services for government entities; thesepartnerships provide a win-win for the entities and reduce the financial impact on the public.Jamba Juice has approached MWDOC with a Community Appreciation Programpartnership opportunity.Jamba Juice is a chain of smoothie restaurants, headquartered in Emeryville, California,with over 700 locations operating in 30 states, the District of Columbia and theBahamas. In Orange County, there are 31 Jamba Juice locations. Since the late 1990’spart of the Jamba Juice culture has been to give back to community organizations thatpromote a healthy lifestyle and healthy environment. MWDOC and the family of OrangeCounty water agencies Water: Do More with Less outreach program has been identifiedby Jamba Juice, as an eligible community appreciation partner.In order to participate in the Community Appreciation Program, MWDOC would need toadhere to the following conditions:1. MWDOC would order and distribute swipe cards at community events or otheroutreach efforts we participate at or in.2. We would encourage through outreach messaging, the use of the swipe cardswhen patronizing a Jamba Juice, stand alone location.3. MWDOC would receive 10% of all proceeds for all eligible purchases throughoutthe year. A check for the proceeds would be processed every 90 days.4. There is no limit to the number of swipe cards that can be ordered or distributed.5. MWDOC can opt out of the program at any time.Other Orange County organizations, such as one in San Juan Capistrano, havereceived as much as $70,000 annually for their participation and encompass muchsmaller geographic area. There are no additional fees to the patrons of Jamba Juiceand the card must be presented at time of purchase.In addition, Jamba Juice would like to promote information and events related to theSouth Orange Coastal Ocean Desalination project in their Dana Point and SanClemente stores to increase public awareness and support of the project. Informationon the OC Water Hero would also be highlighted in all Orange County stores.

Item No. 7GENERAL MANAGER'S REPORTOF STAFF ACTIVITIESOCTOBER 2010Managers'MeetingMWDOC held its managers' meeting in Fountain Valley onSeptember 23. In attendance were Diana Leach (GSWC Consultant);David Entsminger, Buster Eurs and Raquel Manson (Garden Grove);Eric Bauman (San Juan Capistrano); Ron Krause (Brea); GeorgeMurdoch (Newport Beach); Bob McVicker and Jerry Vilander(MCWD); Michael Wolfe (Orange); Robert Hanford (GSWC); KevinLussier (San Clemente); Joan Lyle (Buena Park); Tim DeTurk(SWD); Paul Weghorst (IRWD); Vicky Kim (Tustin); Lisa Ohlund(EOCWD); Bob Hill (ETWD); John Kennedy (OCWD); Kellie Roy(MNWD); and Karl Seckel; Darcy Burke; Harvey De La Torre;Richard Bell; David Cordero; Lee Jacobi; Keith Lyon and myself ofstaff. The agenda included the following:1. Presentation: Garden Grove's Water Conservation ChihuahuaVideo – Buster Eurs2. Presentation: IRWD's Strand Ranch Project – Paul Weghorst3. MWDOC Strategic Planning – Review of Draft Strategies &Objectives4. MWDOC Settlement Agreement Update5. FY 2010/11 Drought Allocations6. MWDOC Final 2011 Capacity Charges7. MET September Board - Issues of SignificanceMeetings withMember AgenciesThe next meeting is scheduled for Thursday, October 28.At the invitation of Director Wayne Rayfield and along with him, Karland I toured the Ocean Institute in Dana Point to discuss a potentialocean desalination exhibit. The Institute is interested in an interactiveexhibit that would explain how ocean water is turned into drinkingwater.Director Brett Barbre and I attended the Yorba Linda Water DistrictMWDOC and OCWD Ad Hoc Committee meeting on September 28where we discussed the MWDOC Settlement Agreement; Results ofMWDOC's Strategic Review; Upgrade of MET's OC-51 Connection;MET Issues; and the Status of OCWD Annexation Process.

General Manager's Report Page 2Meetings withMemberAgencies(Continued)In San Juan Capistrano, Karl and I met with Joe Tait, CityManager/Interim Director of Public Works, and West Curry,Assistant Utilities Director, to discuss water resource issues.Alternate approaches for Metropolitan's involvement in the GWRSExpansion were discussed when Mike Markus, General Manager, andJohn Kennedy, Executive Director of Local Resources &Administration, Orange County Water District, and I met with DevenUpadhyay, Water Resources Manager, Metropolitan.Water outreach was discussed when I met with Mike Beverage,Director, Yorba Linda Water District.Meetings withMET MemberAgenciesSan Diego vs.METCordobaCorporationGeneral water issues were discussed when Karl and I attendedMoulton Niguel Water District's Board meeting.Their proposed Local Resources Project was discussed when Harveyand I met with John Rossi, General Manager, and Jack Safely,Director of Water Resources, Western Municipal WD.The San Diego Rate litigation was discussed when Harvey and I metwith Alfred Smith, Attorney, of Nossaman LLP.Water policy issues were discussed when Harvey and I met with RonGastelum of Cordoba Corporation.MET ITEMS CRITICAL TOORANGE COUNTYMWD’s WaterSupplyAllocation PlanMET’s Allocation Performance for FY 2010/11For a second year in a row, the Metropolitan Board (MET) implementedits Water Supply Allocation Plan on April 13, 2010 at a StageLevel 2 for Fiscal Year 2010/11. Through August 31, 2010 (twomonths of the twelve month allocation period), MET’s deliveries ofimported water totaled 337,895 AF, which is 33% below MET’starget allocation. This means that the member agencies, collectively,are using 33% less than their allocation limits. According to thesedeliveries, MET anticipates sales to reach 1.77 million AF by the endof the fiscal year; which is 160 TAF below MET’s budget projectionsof 1.93 MAF.These water sales, according to MET staff are due to (1) a historicallycool summer, (2) a down economy, and (3) the impact of water useefficiency. MWDOC staff has requested MET to investigate furtherthese three key factors impacting water sales in order to have a betterunderstanding of where water demands are trending in the future.

General Manager's Report Page 3IntegratedResource Plan2010 UpdateLong RangeFinance PlanOn October 11, the IRP Steering Committee will review, comment,and recommend adoption to the Board on the final draft IRP. Basedon the Steering Committee recommendations, the Board will considerthe IRP for adoption on October 12.San Diego County Water Authority (SDCWA) Board Lawsuit onMET’s Rate StructureOn June 10, the San Diego County Water Authority Board (WaterAuthority) unanimously approved filing suit against MET over their2010/2011 water rates. The Water Authority has charged that MET’srates violate California’s Constitution, State law (Prop. 218), andstandard water utility practices, by unfairly allocating costs among itsmember agencies. The Water Authority believes that they are beingovercharged by more than $29.9 million per year. They have alsostated that the misallocation of cost among MET rates uniquelydisadvantages them while reducing the cost of water to all other METmember agencies.MET’s website on the SDCWA LawsuitIn response to a number of inquiries regarding the SDCWA Lawsuitagainst MET’s rate structure, MET’s legal department developed awebpage that discusses the issue of dispute with SDCWA, themethodology of how MET assets its rates, the impact of shifting coststo other member agencies, and the cost of transporting water throughthe MET system. The webpage also includes attachments such as theofficial complaint from SDCWA, exhibits, letters and memos, currentand historic water rates, and recent media articles. The webpage islocated at:www.mwdh2o.com/mwdh2o/pages/legal/litigation/index.htmlColorado RiverIssuesThe Long Range Finance Plan workgroup is expected to meet inOctober to review and discuss rates issues, including the TreatedWater Capacity Charge and the Purchase Order Agreements. Thedraft Long Range Financial Plan will be released for review inOctober. The Board is expected to take action on the plan by the endof the year.Imperial Irrigation District Proposes Release of 41,250 Acre-Feetto the Salton SeaIn September, the Imperial Irrigation District (IID) Board of Directorsannounced their intent to release 41,250 acre-feet (AF) of unusedagricultural water as early mitigation to the Salton Sea. This is inaddition to the 35,000 AF of mitigation water that IID has alreadyobligated to release under terms of the Quantification SettlementAgreement (QSA).

General Manager's Report Page 4Colorado RiverIssues (Continued)Bay Delta/StateWater ProjectIssuesThis proposed action is being taken to mitigate the impacts for2011 and half of 2012 caused by the water transfer agreementsauthorized by the San Diego County Water Authority and theCoachella Valley Water District. Releasing this mitigation waterearly would save IID an estimated $6.3 million in mitigationreimbursement expenses. It will also reduce IID’s reliance onfallowing to meet its water transfer obligations.However, there is a disagreement with Metropolitan WaterDistrict (MET). “IID has to conserve that water,” stated METGeneral Manager, Jeff Kightlinger, “When it is unusedagricultural entitlement water, by law, it’s MET’s, and theycannot put it into the Salton Sea.” Such an action would reduceurban Southern California’s supply by the same 41,250 acre-feet.Both MET and the U.S. Bureau of Reclamation have releasedstatements questioning the legality of IID’s action. The ImperialCounty Board of Supervisors and Imperial Air Pollution ControlDistrict, passed resolutions is support of IID’s decision.Two-Gates Fish Protection Demonstration ProjectIn the past several months, Metropolitan has met with the U.S.Bureau of Reclamation to address public comments andcomments by the U.S. Fish and Wildlife Service and NationalMarine Fisheries Service on the draft Environmental Assessmentand Biological Assessment for the Two-Gates Fish ProtectionDemonstration Project. Metropolitan prepared responses and adraft study approach to address biological, engineering,operational and cost issues identified during review of thesedocuments.At the present time, priority is being placed with the efforts toforecast adult delta smelt movement and distribution in the Deltaand resulting spawning behavior and location. Modeling tools arebeing refined, based on developing scientific data, in order to starttesting the capability to forecast smelt distribution in theupcoming smelt spawning period in December 2010 throughMarch 2011, and possibly help minimize water cost within theexisting regulatory regime. The emphasis on this activity willalso contribute toward reaching agreement on operations for theexport water projects in the future. Further work on the physicalcomponents (gates) and environmental documentation for theTwo-Gates Project will be placed on hold in favor of this morecritical effort in the immediate future.

General Manager's Report Page 5Bay Delta/StateWater ProjectIssues (Continued)DWR Releases 2009 SWP Delivery Reliability ReportThe Department of Water Resources (DWR) has released theState Water Project (SWP) Delivery Reliability Report for 2009,estimating the current and future water delivery reliability of theSWP up to the year 2029. This report is produced every twoyears.Under future conditions, the report shows current SWP annual“Table A” deliveries averaging 60% (2.48 MAF) of the maximumcontract amount of 4.13 MAF per year. Over multiple dry yearperiods, “Table A” deliveries will range from 32% to 38%, whiledeliveries over multiple wet year periods deliveries will rangefrom 72% to 93%.This report represents the current state of affairs with no actionsfor improvements in the Delta being in place. It takes intoaccount the biological opinions issued by the U.S. Fish andWildlife Service (December 2008) and National Marine FisheriesService (June 2009).The 2009 State Water Project Delivery Reliability Report isavailable for public review at:http://baydeltaoffice.water.ca.govMET’s OceanDesalination Policyand PotentialParticipation byMET in theSOCOD ProjectUpdate on Huntington Beach’s Desalination ProjectSimilar to the request that West Basin MWD presented to theMET board, MWDOC is currently in discussions with MET staffon the potential for an equity partnership with the HuntingtonBeach Desalination Project. An equity partnership calls for METto cover a certain portion of the cost in return for a portion ofownership that could reduce the per acre-foot cost of the projectand provide the region with a new supply of water.MWDOC South Orange Coastal Ocean Desalination ProjectMWDOC continues to work with MET to receive assistance onthe project, primarily from the funding and system integrationperspective.Update on Carlsbad Desalination ProjectOn July 22, the San Diego County Water Authority Board ofDirectors adopted a set of terms to be used in negotiating a directWater Purchase Agreement (WPA) for the Carlsbad DesalinationProject. The Board also approved $300,000 for technical studies,and business and legal expertise during the negotiations.

General Manager's Report Page 6MET’s OceanDesalinationPolicy(Continued)Under the approved terms, Poseidon will need to secure sufficientfinancial commitments from private investors before negotiations willcontinue on a WPA. Poseidon must also execute all construction andoperation contracts, and provide all financial documentation before aWPA will be finalized. Key terms for the Water Purchase Agreementinclude:• The Water Authority will have no responsibility or liability for thedesign, permitting, financing, construction, or operation of theproject.• A maximum price will be set equal to the contract price in theprevious water purchase agreements with the nine Desal Partners.The final price will not be determined until all financialdocumentation is provided by Poseidon.• An option to buy the entire plant beginning 10 years after the startdate for commercial operation. The Water Authority will have theright to purchase the plant at the end of the 30-year term for $1(One Dollar).IRWD StrandRanch WaterTransfer &MET's Policy onSWP Transfers• An option for the Water Authority to purchase the project’sconveyance pipeline once the plant has a proven track record ofsuccessful operation. This could reduce the price of the water byup to $200 per acre-foot.In July, the MET Board authorized the General Manager to execute anagreement with MWDOC for the delivery of water supplies fromIrvine Ranch Water District’s Central Valley Storage Program.After the Board action on the MWDOC/IRWD agreement, the WaterPlanning and Stewardship Committee requested that MET staffoutline the key policy principles that would need to be met in orderfor MET to allow Article 15(d) water transfers under MET’s StateWater Contract. In August, MET staff outlined such principles thatmust be met in order to allow such a similar transfer from a memberagency. 1) Preserve MET’s SWP Contract Rights; 2) Ensure FinancialProtection; and 3) Provide a Regional Benefit. It was stated that theMWDOC/IRWD met all these principles.MWDOC/IRWD staffs have been working on the coordinatedoperating, water storage, exchange and delivery agreement with METstaff. Based on these discussions, MWDOC staff plans to bring thisagreement to the MWDOC Board for review and approval in thecoming months.

General Manager's Report Page 7Orange CountyReliabilityProjectsSecond Lower Cross FeederThe study has been completed. MWDOC staff has prepared a shorterversion of the study for use in discussions with Orange CountyStakeholders to determine the level of interest in the various projectoptions.Baker WTP & Introduction of Local Water into the MET SystemIRWD is proceeding with the final design of the facilities, includingthe treatment plant, a reservoir and a pump station to connect into theAMP. The treatment plant is being designed at 43.5 cfs with 10.5 cfsgoing directly to IRWD and 33 cfs going into the AMP. The updatedschedule for this project is:• Preliminary design has been completed• Final design completed by March 2011• Construction – June 2011 – January 2013MWDOC staff is in general agreement with MET on the followingissues:• The concept of a “Virtual Connection” works on the AllenMcColloch Pipeline (AMP) to divide the point ofresponsibility between MET and IRWD for water qualitysampling and reporting to the Department of Public Health.• Concept of leasing the lower section of the AMP. The detailsof the lease need to be reviewed.• MET has requested that for water billing purposes MWDOCallocate the Baker Treatment Plant flows to specific AMPmeters.• Plan Check – MET is conducting the plan check for the pumpstation and interconnecting facilities.• MWDOC would like to bring the issue to the MET Board forapproval by the end of the year on the policy and leaseagreement for introduction of local water.MET is still developing information on:• Emergency supply scenarios where the Baker Treatment PlantFlows could be sent through the South County Pump Station.• Confirming the lease calculations summarized by MWDOC.• Reviewing draft agreements from 2008, when this issue waslast considered.

General Manager's Report Page 8ENGINEERING & PLANNINGBaker WTP -Introduction ofLocal Water intothe MET SystemIntroduction of water back into the AMP is an issue that has beenpicked up and is being pursued again by MWDOC on behalf ofthis project. Our goal is to move this item through our METdirectors and the MET staff to gain MET Board approval by theend of this year or in early 2011. Close coordination with theother MET agencies will be required to make this happen.Karl participated in two recent meetings at IRWD to discuss theissue of getting MET Board approval on introduction of waterinto the AMP.METInterconnections –Second LowerCross FeederStaff Celebrationfor the IrvineInterconnectionProjectAt Moulton Niguel Water District, Karl and I made a shortpresentation to the MNWD Board who had questions on how theapproval process was proceeding.The study between MWDOC and MET has been completed.MWDOC has drafted a more concise study and attached a copyfor discussion with the Board and to begin stakeholder meetingswith the local agencies.At the Duck Club in Irvine, Karl attended a “success is sweet”themed celebration of completion of the Irvine InterconnectionProject that allows about 25 cfs of water from the IRWD systemto be pumped to South Orange County during emergency eventsthat include planned shutdowns of the Diemer Filtration Plant.The luncheon was hosted by IRWD and included staff membersfrom all participating agencies and the consulting engineers whodesigned and the companies who constructed the project. PaulJones hosted the event and gave special recognition to MWDOCfor their leadership in making the project happen. It was notedthat when water is needed, the water community in OrangeCounty has a particularly good record of pulling together to solveproblems in innovative ways.

General Manager's Report Page 9South OrangeCoastal OceanDesalinationProjectBudget BasedTiered Rates Grantfrom DWRCompletion ofUrban WaterManagement Plansfor 2010At the request of the MWDOC Directors to provide a list of thepermits required for the project, staff has drafted the documentand will continue monitoring the permitting requirements to keepthe document updated.Karl and Richard hosted a tour for BUREC that included arepresentative from the Office of Management and Budget toobserve first hand how the local partnerships and investmentswork between BUREC and the local agencies.Over the past month or so, workshops on Budget Based TieredRates have been held with the following agencies:• MNWD• SCWD• EOCWD• ETWD has already moved into implementation• Other agencies will have workshops upcoming• MWDOC will be conducting a meeting of all agenciesparticipating in the process and will be recommending tothe group that another WACO Presentation be prepared.Karl will be working on the second billing to DWR under theGrant Program and is finishing up the Participants' Agreements atthis time. DWR has not yet made the first payment to MWDOC.For the final count, we have 22 agencies participating inpreparation of the UWMP for 2010 under the contract MWDOChas set up with Malcolm Pirnie.1. MWDOC2. City of Anaheim (not part of MWDOC)3. City of Fullerton (not a part of MWDOC)4. City of Garden Grove5. City of La Palma6. City of Orange7. City of Seal Beach8. City of Tustin9. Yorba Linda Water District10. East Orange County Water District11. City of Fountain Valley12. City of Newport Beach13. City of Santa Ana (not a part of MWDOC)14. Mesa Consolidated Water District

General Manager's Report Page 10Completion ofUrban WaterManagement Plansfor 2010(Continued)OC-51San JuanCapistrano UtilitiesCommissionCamp PendletonOcean DesalinationProjectConjunctive UseProgram (CUP)15. City of San Clemente16. El Toro Water District17. South Coast Water District18. Moulton Niguel Water District19. City of San Juan Capistrano20. Santa Margarita Water District21. City of Brea22. City of La HabraWork has been proceeding with the agencies on data collectionand preparation of the background materials. A workshop isbeing planned on SB-7 Compliance towards the 20% reductionrequired by 2020. Our schedule calls for completion of draftreports in November.Karl and Lee have continued the discussions between MET andYLWD for the enlargement of service connection OC-51 from 10cfs to 20 cfs via a simple meter change out. YLWD wants toaccomplish this at a reasonable cost, however, MET has a desireto standardize their service connections as improvements aremade. The discussion of options is continuing.Director Susan Hinman and Karl attended the San JuanCapistrano Utilities Commission where major discussionsoccurred on a “dash board report” to provide staff, theCommissioners and the Council a snapshot of how the UtilitiesDivision is performing. At the meeting, it was noted thatsettlement discussions between the City’s attorney and Chevronare nearing completion.The potential for participation in the San Diego County WaterAuthority Camp Pendleton Ocean Desalination Project wasdiscussed when Richard attended a meeting of the South CountyAgencies. MWDOC prepared a rough cost estimate forintegration of the water from the Camp Pendleton Project backinto South Orange County. The rough costs for the integrationwere estimated at between $400 and $500 per AF for the project.In September 2010, 5,299 AF was stored into the CUP account bydirect percolation of MET untreated water. July throughSeptember, deliveries into the CUP storage account equaled12,208 AF. Deliveries continuing into storage during Octobershould complete the goal of storing at least 16,500 AF into theCUP account during FY2010/11.

General Manager's Report Page 11OCWDProducersMeetingsThe BEA Exemption Program; Ag rate for pumping; MWDOCMember Agencies' Agreement; June 30, 2010 Accumulated Overdraft;Water Reserve Fund Balance; and the October 20, 2010 GWRSExpansion Workshop were discussed when Keith attended the Octobermeeting.WATER USE EFFICIENCYMetropolitan’sConservationCoordinatorWork GroupMeetingMetropolitan’sLong TermConservationPlanMarriottCosta MesaHotel ReportDeliverySouth CountySmartScapeIncentiveProgramIn Los Angeles at MET on September 16, Beth Fahl participated inMet's Conservation Coordinator Work Group meeting where about 40representatives from Met's service area participated. Agenda itemsdiscussed included:• Long Term Program• Monthly Conservation Board Report• MET Rebate Frequency Policy Discussion• Save Water, Save a Buck Reservation System• SoCal Water$mart Outreach• Member Agency RoundtableThe next meeting is scheduled for October 21.On September 22, Joe Berg participated in a Long Term ConservationPlan review meeting hosted by Metropolitan. This meeting wasattended by more than 25 member agency staff. The purpose of thismeeting was to review and provide comments on Metropolitan’s LongTerm Conservation Plan.On September 21, Beth, along with Jamar Ogen from MesaConsolidated Water District and Nancy Warfel from WaterWiseConsulting, met with Roger Selver of the Marriott – Costa Mesa todiscuss the results of the hotel’s recent survey and to educate Mr.Selver about the rebate opportunities currently available.On September 20, Steve Hedges and Sergio Ramirez attended the firstof over 200 pre-improvement landscape audits that will be conductedin connection with the SmartScape Irrigation Improvement Program.The audit was performed by Mission Resource Conservation District(MRCD) in Santa Margarita Water District's service area. TheSmartScape Program is underway, and staff has received over 27applications for participation from Moulton Niguel Water District andSanta Margarita Water District. Of those 27 applicants, pre-retrofitinspections have been completed on 14. The SmartScape programcontractors are receiving calls to complete the retrofit process, makingsure to follow the guidelines of the program.

General Manager's Report Page 12LandscapeDatabaseDevelopmentProjectSouth OrangeCountyIntegratedRegionalWatershedManagementPlanCAL Green –New ResourceEfficientBuilding CodesWorkshopOn September 21 and October 1 and 8, the WUE staff met, via a webmeeting platform, with Bhasker Rao of Fortech Inc. which is the firmcurrently under contract to develop MWDOC’s landscape databasesystem. The meetings were conducted to review the ongoing workdone by Fortech in the development of the new system. Task 1 of thework plan is approximately 80% complete and involves the developmentof the systems Design Document. This document is used todevelop the various data display and data input screens. After arocky start, MWDOC has worked closely with Fortech to improvetheir understanding of the purpose and direction of the new databasesystem. It is anticipated Task 1 (Design Document) will be completeby the end of the month. Once the Design Document is complete, thedata base coding will begin.At SMWD on September 29, Joe participated in a SOCIRWMPmeeting where more than 25 county, city, and water agency staffattended. The meeting was led by Mary Anne Skorpanich andMarilyn Thoms from the county. Status reports on the CooperativeAgreement, Proposition 50, and Proposition 84 were provided.County staff will be taking the cooperative agreement to the Board ofSupervisors for consideration in November. The first meeting of theExecutive Committee will be held in late January. The Proposition50 grant agreement term was extended by three years to June 2015.Since the JP Lathem Project will not proceed, it was decided toredirect those grant funds ($5 million) to El Toro Water District’sJoint Recycling Water Treatment and Distribution Project and SouthCoast Water District’s Water Harvesting on Aliso Creek. The initialallocation of Prop 84 funding for the SOCIRWMP area is estimatedat $1.3 million. The group felt that since this is such a relativelysmall amount of funding, it should be directed to one project thatprovides multiple regional benefits. Ultimately, the group broadlysupported MWDOC's Water Smart Landscape Project. The nextmeeting is scheduled for December.On September 30, Joe attended a CAL Green – New ResourceEfficient Building Codes Workshop sponsored by the O.C. Divisionof the League of Cities and the City of Costa Mesa. The purpose ofthe workshop was to introduce O.C. planning departments to the newbuilding standards. Lynn Jacobs, Director, and Doug Hensel,Assistant Deputy Director, CA Dept. of Housing and CommunityDevelopment, provided a detailed description of the standards as wellas background into their development. From the water use perspective,the standards are designed to achieve a 20% reduction in indoorwater use. Joe will be introducing these standards to the WaterConservation Coordinator Work Group at their November meeting.

General Manager's Report Page 13SBx 7-7 WaterConservation Actof 2009Industrial Process Water SubcommitteeThe Water Conservation Act of 2009 allows agencies to deductindustrial process water from their baseline and compliance gpcd(gallons per capita day)calculations so as not to place an undueburden on industrial businesses or a gpcd shift from one customersegment to another. The Urban Stakeholder Committee (USC)tasked an Industrial Process Water Subcommittee withdeveloping a recommendation on how to deduct process waterfrom baseline and compliance gpcd calculations.Joe participated in these Subcommittee meetings on September 27at the Cal EPA building in Sacramento and October 12 through awebinar. The objectives of these meetings were:1. To clarify next steps for process water regulation andfuture public input opportunities.2. To review changes and considerations made to theupdated regulation draft, the rationale for making changes,and to review subsequent background materials.3. To hear stakeholder feedback on the current draft anddiscuss possible updates before the formal rule makingprocess begins.Compliance Option No. 4 SubcommitteeThe Water Conservation Act of 2009 also calls for 4 complianceoptions for agencies to choose from in setting their gpcd goal.Three options were defined in the Act, while development of thefourth was assigned to the USC. The USC tasked a ComplianceOption No. 4 Subcommittee with developing a recommendation.Joe participated in these Subcommittee meetings on September 20at Inland Empire Utilities Agency and October 14 at Irvine RanchWater District. A total of six proposals were considered by theSubcommittee. Currently, two Best Management Practice-basedproposals are being combined for USC consideration. Theobjectives of these meetings were:1. Conduct updates on conversations since the last U4Subcommittee meeting2. Receive information on Method 4 analyses conducted byDWR3. Discuss and confirm Subcommitteeperspectives/recommendations to the USC

General Manager's Report Page 14SBx 7-7 WaterConservationAct of 2009(Continued)Urban Stakeholder CommitteeOn October 15, Joe participated in the Urban Stakeholder Committee(USC) charged with developing guidelines for implementation of theWater Conservation Act of 2009. This Committee, lead by DWRstaff, is comprised of urban water agency and environmentaladvocacy stakeholders from through-out the state. Approximately 35representatives participated in this meeting. The objectives of thismeeting were:1. Present and discuss recommendations of the U4 Subcommitteeon Method 4 Proposals and obtain input on next steps.2. Discuss U4 Public Outreach Meetings3. Present the work of the U5 Process Water Subcommittee andthe Process Water Draft Regulation, and Future PublicInvolvement Opportunities.4. Present and discuss next steps on the Urban WaterManagement Plan Guidebook and training sessions.CA-NV AWWAFall ConferenceOrange CountyWater UseEfficiencyCoordinatorWorkgroupMeetingThe next Urban Stakeholder Committee Meeting is scheduled forDecember 1 in Sacramento.In Sacramento on October 6, Joe presented at the Water ConservationSession of the CA-NV AWWA Fall Conference. Joe’s presentationfocused on the Water Conservation, Runoff Reduction, and PollutionPrevention Benefits of SmarTimers.At the City of Santa Ana on October 7, Joe, Steve, and Sergio metwith about 30 water conservation coordinators for the OC WUECoordinator Workgroup meeting. Topics included:• MWDOC Activities and Happenings• Member Agency Activities and Happenings• Problem Solving Roundtable• Legislation/State Budget Issues• Public Affairs/Marketing• Drought Response/Rate Structure Roundtable• Regional Program Updateso Turf Removal Program• Metropolitan Updateo SBx 7-7 Updateo Strategic Plan for Water Use Efficiencyo METs Long Term Conservation Plan• CUWCC UpdateThe next meeting is scheduled for November 4 and will be hosted bythe City of Huntington Beach.

General Manager's Report Page 15EMERGENCY PREPAREDNESSGeneral Activities • Crystal Boteler attended the Special Districts EOCTraining at the Los Angeles Department of Public Works.This training provided an opportunity to see how specialdistricts in Los Angeles have prepared or responded todifferent incidents.• Crystal attended a free Basic Public Information Officer(PIO) training provided by the California SpecializedTraining Institute and hosted by the Riverside FireDepartment. The workshop provides PIO skills trainingfor public information officers at all experience levels.• In Monterey, Kelly Hubbard attended the CaliforniaEmergency Services Association (CESA) annualconference. Sessions ranged from lessons learned fromthe Chile Earthquake to terrorism counter-measures forgovernment agencies. Kelly was also a speaker on a panelwith other responders from the Baja CaliforniaEarthquake.• Kelly attended the CESA Southern Chapter board meetingas a Director of that board.• Crystal and Kelly meet with the staff of i-Info, theWEROC resource management system. They providedstaff with updates on features and changes to thecompany’s outreach program. One update is of particularinterest because of it’s applicability to all the utilities, aswell as cities in the county. Staff will be following upwith i-Info on the best way to implement its use.CountyCoordinationKelly attended the Urban Area Working Group (UAWG) meeting.The UAWG group is a collaborative group of OC agencies whoreceive and redistribute homeland security and emergencyplanning grant funds. There was a presentation on a businesscontinuity project for Cities for whom UAWG approved funding.Kelly was able to gain support for a template product to be createdfrom the City process for the water utilities to use which should beavailable later this calendar year.At the OC OA EOC, Crystal attended the Terrorism WorkingGroup committee meeting where recent updates proposed for theCounty’s CBRNE plan were discussed. Changes and additions to

General Manager's Report Page 16CountyCoordination(Continued)OutsideAgencyCoordinationthe plan regarding water and wastewater’s general role during such anevent were submitted by WEROC and accepted by the group.Kelly attended the Alert OC Collaboration meeting where she providedthe group with a status update on water utility participation. This is ausers' group for all participants in the program.Kelly attended the OCEMO general meeting and Exercise Design Comm.To assist the district in kick starting its emergency and security planningand programs, Kelly met with staff of West Basin.Kelly participated in the California Water Wastewater Agency ResponseNetwork (CalWARN) State Committee conference call as the Region 1Chair.WEROCEOCReadinessWEROCEOCRemodelUpdateOn October 8 Kelly participated in a facilitation of the CalWARN StatewideTabletop Exercise at the AWWA Cal-NV conference. She was partof a national planning team that included all levels of government. Theactual exercise was attended by more than 70 individuals, which wasbeyond the planning team’s expectations. There was very positivefeedback to the exercise and the group is looking into hosting a similarexercise in Southern California during the AWWA Cal-NV SpringExercise in Long Beach.WEROC staff was not available for the County’s OA and MET's MARSradio checks this month due to scheduling conflicts.WEROC attempted to conduct a radio test and discovered someproblems with the system. A radio contractor is working on indentifyingthe problem and finding a solution.The audio visual (AV) work has been completed at both EOCs. Aprojector, screen, and TV were successfully installed at both sites.Additionally the contractor assisted staff with moving telephones,cleaning up wiring for computers, and moved electrical outlets to moreideal locations for laptop use and safety.Contractors returned to both EOCs to remove old wallpaper and woodlaminate from walls at both EOCs. The walls were then primed andpainted to match the surrounding walls. This work was both for safetyand visual appeal, as both facilities had previous issues with leaks andwater damage.Kelly met with CDR on the first drafts of the WEROC Mapping Atlas.The drafts looked great and CDR is moving forward with the projectproduction.

General Manager's Report Page 17PUBLIC/GOVERNMENTAL AFFAIRSClient AgencyRelationsAt West Basin's Edward Little Recycling Facility in El Segundo,Darcy attended Metropolitan’s Public Information Officers' meetingon September 16.Jessica attended Metropolitan’s Education Coordinators meeting onSeptember 30. MET will be piloting their new ConservationConnection middle school curriculum this fall. MWDOC will haveone boat in the Solar Cup Program.To the Communications Sub-Committee of MET’s Blue RibbonCommittee, Darcy presented information on the Water: Do More withLess Campaign and related strategies.On September 28 with the help of the public affairs department staff,Jessica conducted the MWDOC Public Affairs Workgroup (PAW)meeting which featured a presentation on the results of the PAWmeeting survey and new improvements to the meetingstructure/content, a discussion regarding public agencies andtransparency, an overview of the Inspection Trip Program, alegislative update, a brief School Program demonstration byDiscovery Science Center, and a new break out session format. 15participants attended the meeting.Ways to better coordinate messaging and events with the businesscommunity were discussed when Darcy met with John Arena fromMetropolitan’s Business Outreach Section.Darcy and Eleanor Torres of OCWD have begun to work on thebudget and logistics for the next OC Water Summit which will beheld on May 20 at Disney’s Grand Californian. Meetings for thecommittee are being scheduled with the Co-Chairs, Directors Thomasand Sheldon, in the upcoming weeks.The possibility of doing a water conservation mural in the City ofFountain Valley was discussed when Jessica met with Mike Howardof Operation Clean Slate and Mark Lewis, Andrew Perea, and WendyLee of the City of Fountain Valley. The City is very excited aboutthis possibility and is interested in having the mural – which would

General Manager's Report Page 18Client AgencyRelations(Continued)be funded through a MET Community Partnering Program grant– painted on the street side of its drinking water reservoir. Thereservoir is located at the Euclid Street freeway on/off ramp –immediately adjacent to the Orange County Sanitation Districtentrance. A proposal will be drafted and submitted to city councilin the near future.Darcy and Jessica are coordinating with El Toro to have RickiRaindrop make an appearance at their 50 th anniversary event onSaturday, October 16.MWDOC and Irvine Ranch Water District will be sponsoring aboat in MWD’s Solar Cup Program. The entrance fee is beingfunded by IRWD.Jessica developed a water use efficiency poster for the City of SanJuan Capistrano which utilized design elements and water savingtips from MET’s Move the Needle promotional materials.Jessica provided water use efficiency materials and literature toIrvine Ranch Water District and the City of Westminster.Materials were also provided to the National Water ResearchInstitute.David developed a resolution for Mesa Consolidated WaterDistrict’s 50 th anniversary. Jessica assisted with the resolution'sdesign and framing. The resolution was presented by DirectorSusan Hinman at MESA’s 50 th anniversary event on October 13.Director Ed Royce and David, Jessica and I also attended.CommunityRelationsTo ensure coordination of outreach and messaging as it pertains toChairman Foley's term, Darcy met with Linda Waade ofMetropolitan on October 13.At the Grand Californian in Anaheim, Darcy and Jessica attendeda preliminary planning meeting with OCWD staff for the next OCWater Summit.In the City of Industry, Directors Susan Hinman and LindaAckerman and Darcy and Richard attended Southern CaliforniaWater Committee’s Annual Dinner.Darcy and Tiffany Baca continue to work on finalizing the onedayinspection trip schedule and preparing for the season.

General Manager's Report Page 19CommunityRelations(Continued)How we can expand our partnership and increase our messagingwas discussed on October 15 when Darcy met with Kevin Herglotz,President of HPA Strategies, the chief strategist for Jamba Juice.Also on October 15, Darcy and Tiffany Baca attended the CoroLuncheon featuring Phil Isenberg.School ProgramDarcy was invited to participate in the strategic planning session forthe Urban Water Research Center. .To date, Discovery Science Center has booked 37,541 students inthe water assembly program. In September, 5,737 students wereserved. The total number of MWDOC-funded students for the2010-11 school year is 42,850.Staff of Discovery Science Center and Jessica continue to meetindividually with the member agencies regarding additional fundingfor the School Program. As result of these meetings, six MWDOCmember agencies have committed to funding an additional 8,112students (total). When combined with the three cities’ students, thisbrings the total number of students served through the program to65,596. A more detailed report will be provided to the PALcommittee in October.Media RelationsOn September 22, Jessica and public affairs intern Tiffany Buimanned a MWDOC School Program booth at Discovery ScienceCenter’s Educators' Evening of Science. The event was very wellattended with more than 600 guests stopping by the booth.Trinity Broadcasting Network, Corrie Hickey, Public AffairsDirector for the Network has invited Director Jeff Thomas back foranother segment on water issues in Orange County. The segmentwill be filmed on October 27 and Darcy is scheduled to appear withhim.Orange County Register, reporter Teri Sforza contacted Darcy toask some questions on the compensation information provided andto let us know she is now focusing on that story. A publishing datehas not yet been scheduled.Jessica prepared and distributed a press release regarding theCalifornia Emergency Services Association’s EmergencyManagement Award, which was awarded to Kelly Hubbard,WEROC Programs Manager. The release received over 100 mediahits through PitchEngine.

General Manager's Report Page 20Media Relations(Continued)Special ProjectsDarcy and Jessica developed and distributed a press releaseregarding Colonel Foley’s election as Board Chairman of theMetropolitan Water District of Southern California.Darcy continues to work with Ed Means in developingMWDOC’s strategic goals, strategies, objectives, tactics, and ascorecard. Darcy and David attended the Board Workshop onSeptember 18. . Kevin presented the information at the Managers'meeting and Darcy presented it to the last all-staff meeting. Inaddition, Darcy presented the structural assessment findings to theleadership team. She is working on a summarizing a programevaluation to support the implementation phase of the strategicreview process.Darcy assisted Director Linda Ackerman with some preliminaryinformation for the next SARWQCB meeting at the end ofOctober.David and Jessica have developed the first issue of O.C. WaterHero News! – the electronic newsletter for O.C. Water Heroprogram participants.Staff is preparing for two small upcoming South Orange CoastalOcean Desalination Project open houses. The open houses will beheld October 28 for local university students and November 17for the League of Women Voters.At UCLA, Jessica attended a crisis and risk communicationsworkshop for public agency staff on October 14.Water UseEfficiencyMarketingPhase two of the website redesign is complete. All of the websitestructure has been developed to allow for integration with socialmedia elements and many of the other web 2.0 features are readyto launch. A complete report will be provided to the PALcommittee in October.Jessica developed and distributed a survey of the monthly OrangeCounty Water Use Efficiency Coordinators meeting participants.The goal of the survey is to gain feedback from attendees andimprove the meeting content/structure. Survey results will becompiled in the next few weeks.

General Manager's Report Page 21Water UseEfficiencyMarketing(Continued)On October 6, Jessica presented at the WaterSmart InnovationsConference in Nevada. The presentation, titled “Water: Do Morewith Less – Engaging Citizens in Water Awareness” was givenunder the Marketing and Outreach presentation track.Approximately 45 attendees were present during the presentation.The presentation was well received and there were severalquestions/comments from the audience.Water use efficiency staff and Jessica continue to work withFortech to develop the landscape programs database. Staff iscurrently finalizing the design document and outlining thedatabase structure.Jessica developed new ads for the California Friendly LandscapeTraining (CFLT) classes. The ads were coordinated with thehosting MWDOC member agency and ran in select communitypapers to promote the October 9 and 23 CFLT classes – hosted bythe City of Huntington Beach and Trabuco Canyon WaterDistrict, respectively.On September 29, Jessica attended the County of Orange PublicEducation Subcommittee meeting.Legislative AffairsOn October 13, Jessica participated in a marketing and outreachconference call for the SoCal WaterSmart residential rebateprograms.David continues his participation on the conference calls of theMetropolitan Water District of Southern California’s MemberAgency Legislative Coordinators and the Southern CaliforniaWater Committee’s Legislative Task Force. The recent callsfocused on the just-concluded state legislative session and adiscussion of the water-related bills still awaiting action by thegovernor. Metropolitan will conduct its annual legislativeplanning meeting on October 20 and the Southern CaliforniaWater Committee will conduct its planning meeting later thisyear.David provided end-of-session legislative reports to the PublicAffairs Work Group; the Water Use Efficiency Working Group;the Water Advisory Committee of Orange County; andIndependent Special Districts of Orange County.

General Manager's Report Page 22LegislativeAffairs(Continued)At a City Council Candidates’ Reception hosted by the SouthOrange County Regional Chamber of Commerce, Davidaccompanied Director Susan Hinman. Incumbent council membersseeking re-election and other council candidates from the Cities ofAliso Viejo, Dana Point, Laguna Niguel, Laguna Hills, Lake Forest,Mission Viejo, Rancho Santa Margarita, and San Juan Capistranowere in attendance.ISDOC-related administrative issues for the coming year werediscussed when David met with ISDOC President-Elect, RichFreschi (Serrano Water District), and ISDOC Secretary, PattyQuilizapa (McCormick, Kidman & Behrens).David attended the CSDA Legislative Committee meeting wherethe committee had an end-of-session legislative recap as well as adiscussion of the just-passed state budget. The committee alsodiscussed the upcoming general election and legislative issues onthe horizon for 2011. This was the final meeting of the 2010committee and the appointments to the 2011 committee should beannounced shortly.Six representatives discussing supply chain policy issues, the futureof goods movement through the ports of Los Angeles and LongBeach, and regional/nationwide good-related transportation issueswere featured when David attended the Orange County BusinessCouncil Infrastructure Committee meeting.David is scheduled to join Directors Susan Hinman and Larry Dickat the next meeting of the Orange County Division of the League ofCalifornia Cities. The program will be a moderated pre-electionroundtable featuring a panel of local officials and the countyRepublican and Democratic party chairmen.pat meszaros10/14/10