~ ~ Cucamonga Valley® ~ Water District

Service Beyond Expectation

CUCAMONGA VALLEY WATER DISTRICT BOARD OF DIRECTORS MEETING AGENDA

January 26, 2021 – 6:00 p.m. District Office, Board Room 10440 Ashford Street; Rancho Cucamonga, California

Teleconference/Webinar Notice: In an effort to prevent the spread of COVID-19 (Coronavirus), and in accordance with the Governor’s Executive Order N-29-20 and the order of the County of San Bernardino dated March 17, 2020, there will be no public location for attending this Board Meeting in person. Members of the public may listen and provide public comment by calling or joining the webinar using the following information: Dial: +1 (877) 568-4106, Access Code: 955-106-309 And/or https://global.gotomeeting.com/join/955106309

OUR MISSION The mission of the Cucamonga Valley Water District is to provide high quality, safe and reliable water and wastewater services, while practicing good stewardship of natural and financial resources.

1. CALL TO ORDER / FLAG SALUTE

2. ADDITIONS/DELETIONS TO AGENDA

3. PUBLIC COMMENT Members of the public may comment on any item listed or not listed on the agenda. Comments related to noticed public hearing items will be heard at the time the public hearing is conducted. Speakers are requested to keep their comments to no more than five (5) minutes. The President may reduce the time to not less than three (3) minutes depending upon the number of speakers wishing to address the Board. Under the provisions of the Brown Act, the Board is prohibited from taking action on items not listed on the agenda.

Anyone wishing to provide comment during Public Comment are asked to do so via telephone only (no computer) using the dial and access code information provided above to avoid technical disruptions.

4. GENERAL MANAGER/CEO REPORTS John Bosler, General A) District Updates Manager/CEO

B) IEUA Board Meeting Agenda

JANUARY 26, 2021 BOARD MEETING AGENDA PAGE 2

5. CONSENT CALENDAR All matters listed under the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless members of the Board request specific items be removed for separate action.

A) Approve Minutes of the January 12, 2021 Regular Board Meeting.

B) Approve Board Calendar of Events.

C) Receive and File the quarterly PARS Investment Report for quarter ended December 31, 2020.

D) Approve Cash & Investment Report for month ending December 31, 2020.

E) Receive and File Monthly Financial Results Report for month ending November 30, 2020.

F) Approve Cash Disbursements for month ending December 31, 2020.

G) Receive and File January Government & Public Affairs Report.

6. ACWA/JPIA EXECUTIVE COMMITTEE ELECTIONS Taya Victorino, ADOPT RESOLUTION NO. 2021-1-2 NOMINATING THE DISTRICT’S JPIA Executive Assistant BOARD MEMBER, RANDALL REED, TO THE EXECUTIVE COMMITTEE

7. BRIDGE POINT RANCHO CUCAMONGA WATER SUPPLY ASSESSMENT Gidti Ludesirishoti, ADOPT RESOLUTION NO. 2021-1-4 APPROVING A WATER SUPPLY Associate Engineer ASSESSMENT FOR THE BRIDGE POINT RANCHO CUCAMONGA WAREHOUSE PROJECT

8. CREDIT FOR EXISTING CAPACITY FEES- COMAR RANCHO 2.0 Eduardo Espinoza, APPROVE THE ISSUANCE OF CREDIT FOR EXISTING WATER AND SEWER Director of CAPACITY FEES IN THE AMOUNT OF $48,616 AND $6,605, RESPECTIVELY, Engineering Services ASSOCIATED WITH THE PROPERTY LOCATED AT 9595 UTICA AVENUE (PM 17318)

9. EASEMENT ACQUISITION AND AWARD OF CONTRACT FOR Eduardo Espinoza, TRANSMISSION MAIN FROM RESERVOIR 5 TO 5B Director of  ADOPT RESOLUTION NO. 2021-1-3 APPROVING AN EASEMENT Engineering Services PURCHASE FROM HUNTER FAMILY TRUST IN THE AMOUNT OF $1,755

 APPROVE THE AWARD OF CONTRACT FOR THE CONSTRUCTION OF A TRANSMISSION MAIN FROM RESERVOIR 5 TO 5B TO MERLIN JOHNSON CONSTRUCTIONS, INC. IN THE AMOUNT OF $457,734

Posted 01-22-21 JANUARY 26, 2021 BOARD MEETING AGENDA PAGE 3

10. AWARD OF CONTRACT FOR WELL 31 REHABILITATION PROJECT Michael Maestas, APPROVE THE AWARD OF CONTRACT FOR WELL 31 REHABILITATION Water Production PROJECT (CP20041- ANNUAL GENERAL WELL REHABILITATION) TO Manager GENERAL PUMP COMPANY, INC. IN THE AMOUNT OF $152,880

11. PURCHASE ORDER FOR CP20046- BOOSTER SEQUENCING EQUIPMENT Michael Maestas, AND SERVICES Water Production APPROVE A PURCHASE ORDER FOR THE PURCHASE OF TWENTY-THREE Manager PRESSURE REGULATING VALVE MONITORING STATIONS AND RELATED SERVICES TO PONTON INDUSTRIES, INC. IN THE AMOUNT OF $102,382.41

12. BOARD COMMITTEE REPORTS

A) January 11, 2021 Government and Public Affairs Committee

13. BOARD MEMBER REPORTS

RECESS A brief recess will be held prior to the workshop

14. LEGISLATIVE POLICY PRINCIPLES WORKSHOP Eric Grubb, INFORMATION ONLY ITEM. NO BOARD ACTION WILL BE TAKEN. Government & Public Affairs Manager

15. ADJOURN

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Board Secretary (909) 987-2591, 48 hours prior to the scheduled meeting so that the District can make reasonable arrangements.

Pursuant to Government Code Section 54957.5, any writing that: (1) is a public record; (2) relates to an agenda item for an open session of a regular meeting of the Board of Directors; and (3) is distributed less than 72 hours prior to that meeting, will be made available for public inspection at the time the writing is distributed to the Board of Directors. Any such writing will be available for public inspection at the District offices located at 10440 Ashford Street, Rancho Cucamonga, CA 91729. In addition, such writing may also be posted on the District’s web site.

Posted 01-22-21 NOTICE OF MEETING

OF THE BOARD OF DIRECTORS

OF THE

WILL BE HELD ON

WEDNESDAY, JANUARY 20, 2021 10:00 A.M.

TELECONFERENCE ACCESSIBILITY FOR THE GENERAL PUBLIC: In all efforts to prevent the spread of COVID-19, until further notice, the Inland Empire Utilities Agency will be holding all Board and Committee meetings by teleconferencing.

The meeting will be accessible at: (415) 856-9169/Conference ID: 811 284 110#

This meeting is being conducted virtually by video and audio conferencing. There will be no public location available to attend the meeting; however, the public may participate and provide public comment during the meeting by calling into the number provided here. The public may also view the meeting live through the Agency’s website. Alternatively, email your public comments to the Board Secretary/Office Manager Denise Garzaro at [email protected] no later than 24 hours prior to the scheduled meeting time. Comments will then be read into the record during the meeting.

AGENDA REGULAR MEETING OF THE BOARD OF DIRECTORS

WEDNESDAY, JANUARY 20, 2021 10:00 A.M.

INLAND EMPIRE UTILITIES AGENCY* VIEW THE MEETING LIVE ONLINE AT IEUA.ORG TELEPHONE ACCESS: (415) 856-9169 / Conf Code: 811 284 110#

PURSUANT TO THE PROVISIONS OF EXECUTIVE ORDER N-25-20 ISSUED BY GOVERNOR GAVIN NEWSOM ON MARCH 12, 2020, AND EXECUTIVE ORDER N-29-20 ISSUED BY GOVERNOR GAVIN NEWSOM ON MARCH 17, 2020 AND IN AN EFFORT TO PROTECT PUBLIC HEALTH AND PREVENT THE SPREAD OF COVID-19, THERE WILL BE NO PUBLIC LOCATION FOR ATTENDING IN PERSON.

The public may participate and provide public comment during the meeting by dialing into the number provided above. Alternatively, public comments may be emailed to the Board Secretary/Office Manager Denise Garzaro at [email protected] no later than 24 hours prior to the scheduled meeting time. Comments will be read into the record during the meeting.

CALL TO ORDER OF THE INLAND EMPIRE UTILITIES AGENCY BOARD OF DIRECTORS MEETING

FLAG SALUTE

PUBLIC COMMENT

Members of the public may address the Board on any item that is within the jurisdiction of the Board; however, no action may be taken on any item not appearing on the agenda unless the action is otherwise authorized by Subdivision (b) of Section 54954.2 of the Government Code. Those persons wishing to address the Board on any matter, whether or not it appears on the agenda, are requested to email the Board Secretary no later than 24 hours prior to the scheduled meeting time or address the Board during the public comments section of the meeting. Comments will be limited to three minutes per speaker. Thank you.

ADDITIONS TO THE AGENDA

In accordance with Section 54954.2 of the Government Code (Brown Act), additions to the agenda require two-thirds vote of the legislative body, or, if less than two-thirds of the members are present, a unanimous vote of those members present, that there is a need to take immediate action and that the need for action came to the attention of the local agency subsequent to the agenda being posted.

1

PRESENTATIONS

CERTIFICATE OF RECOGNITION, PRESENTED TO SANTA ANA WATERSHED PROJECT AUTHORITY GENERAL MANAGER RICH HALLER

1. PUBLIC HEARING

A. ADOPTION OF REGIONAL WASTEWATER ORDINANCE NO. 109 (Eng/Ops/WR) Staff recommends that the Board:

1. Hold a Public Hearing to receive public comments prior to the adoption of Ordinance No. 109, regulating the availability and use of the Regional Sewerage System; and

2. After closing the Public Hearing, adopt Regional Wastewater Ordinance No. 109.

2. NEW, PROMOTED AND RECLASSIFIED EMPLOYEE INTRODUCTIONS

3. CONSENT ITEMS

NOTICE: All matters listed under the Consent Calendar are considered to be routine and non- controversial and will be acted upon by the Board by one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes unless any Board members, staff or the public requests specific items be discussed and/or removed from the Consent Calendar for separate action.

A. MINUTES Approve minutes of the December 2, 2020 Board Workshop and the December 16, 2020 Board Meeting.

B. REPORT ON GENERAL DISBURSEMENTS (Finance & Admin) Staff recommends that the Board approve the total disbursements for the month of November 2020, in the amount of $17,777,238.14.

2

C. PREDESIGN CONTRACT AWARD FOR FIVE PROJECTS FISCAL YEAR 2020/2021 (Eng/Ops/WR) Staff recommends that the Board:

1. Award a consultant contract for the Five PDR Projects Fiscal Year 20/21, which includes the RP-4 Contact Basin Cover/Wet Well Passive Overflow, Montclair Force Main Improvements, 8th St. RW Turnout Connection to 1630 W. Pipeline, Ely Monitoring Well, and RP-1 Old Effluent Structure Replacement, Project No.'s EN21041, EN21045, EN21050, EN21051, and EN21053, to GHD Inc., for the not-to-exceed amount of $478,973; and

2. Authorize the General Manager to execute the consultant contract, subject to non-substantive changes.

D. SMALL SITE CONTROLLER UPGRADE PROGRAM CONTRACT AMENDMENT (Eng/Ops/WR) Staff recommends that the Board:

1. Approve a contract amendment with Conserv Construction, Inc. for the Small Site Controller Upgrade Program for a not-to-exceed amount of $462,000, increasing the contract from $600,000 to $1,062,000 (44% increase); and

2. Authorize the General Manager to execute the contract amendment, subject to non-substantive changes.

E. RP-1 AERATION MEMBRANE REPLACEMENT MATERIAL SOLE SOURCE PROCUREMENT (Eng/Ops/WR) Staff recommends that the Board:

1. Approve a material procurement, as a sole source, for the Agency- Wide Aeration, Project No. PA17006, through Parkson Corporation, for a not-to-exceed amount of $433,732; and

2. Authorize the General Manager to execute the procurement, subject to non-substantive changes.

F. BRINE SEWER SYSTEM AND REGIONAL SEWER SYSTEM MANHOLE UPGRADE CONSTRUCTION CONTRACT AWARD (Eng/Ops/WR) Staff recommends that the Committee/Board:

1. Award a construction contract for the BSS Manhole Upgrades FY20/21 and RSS Manhole Upgrades FY20/21, Project No's. EN21014 and EN21015, to Norstar Plumbing and Engineering, Inc., in the amount of $283,995; and

2. Authorize the General Manager to execute the contract, subject to non-substantive changes.

3

G. 1158 EAST & WEST RESERVOIR REHABILITATION CONSTRUCTION CHANGE ORDER (Eng/Ops/WR) Staff recommends that the Board:

1. Approve a construction change order for the 1158 East & West Reservoir Rehabilitation, Project Nos. EN21004 & EN22004, to Spiess Construction Company, for the not-to-exceed amount of $146,548.50, increasing the contract from $2,985,479 to $3,132,027, 4.9% increase; and

2. Authorize the General Manager to execute the change order, subject to non-substantive changes.

H. ADOPTION OF THE LOCAL AGENCY INVESTMENT FUND, DEPOSITORY AGREEMENT, INVESTMENT AND SIGNATORY RESOLUTIONS Staff recommends that the Board adopt the following Resolutions:

1. No. 2021-1-1, authorizing participation in the Local Agency Investment Fund (LAIF) and designating signatories for the deposit and withdrawal of funds;

2. No. 2021-1-2, authorizing and designating signatories for depository agreement, depository cards, deposits, transfers, checks, and withdrawals of funds;

3. No. 2021-1-3, authorizing and designating signatories for investment agreements, investment authorizations, and investment fund transfers to fund investment transactions; and

4. No. 2021-1-4, authorizing and designating signatories for transfer documents for the movement of funds and investment securities to safekeeping with a third-party Custodian.

4. ACTION ITEMS

A. AGENCY-WIDE ORGANIZATIONAL MEMBERSHIPS AND AFFILIATIONS (Community & Leg) Staff recommends that the Board:

1. Adopt Resolution No. 2021-1-5, authorizing the Agency-wide organizational memberships and affiliations for Fiscal Year 2021/22; and

2. Authorize the General Manager to approve all Agency-wide Membership fees that are $5,000 or less.

4

B. PERSONNEL POLICY REVIEW SERVICES CONSULTANT CONTRACT AWARD (Finance & Admin) Staff recommends that the Board:

1. Award a contract for Personnel Policy Review Services, to Liebert Cassidy Whitmore, for a not-to-exceed amount of $110,000; and

2. Authorize the General Manager to execute the contract.

5. INFORMATION ITEMS

A. ENGINEERING AND CONSTRUCTION MANAGEMENT PROJECT UPDATES (POWERPOINT) (Eng/Ops/WR)

B. 2013 RECHARGE MASTER PLAN UPDATE (RMPU) FINANCING OPTIONS (WRITTEN/POWERPOINT) (Finance & Admin)

RECEIVE AND FILE INFORMATION ITEMS

C. 2nd QUARTER STRATEGIC PLANNING & RESOURCES UPDATE (POWERPOINT) (Eng/Ops/WR)

D. OPERATIONS DIVISION QUARTERLY UPDATE (POWERPOINT) (Eng/Ops/WR)

E. RP-5 EXPANSION PROJECT UPDATE: JANUARY 2021 (POWERPOINT) (Eng/Ops/WR)

F. TREASURER’S REPORT OF FINANCIAL AFFAIRS (WRITTEN/ POWERPOINT) (Finance & Admin)

G. PUBLIC OUTREACH AND COMMUNICATION (WRITTEN) (Community & Leg)

H. STATE LEGISLATIVE REPORT FROM WEST COAST ADVISORS (WRITTEN) (Community & Leg)

I. FEDERAL LEGISLATIVE REPORT AND MATRIX FROM INNOVATIVE FEDERAL STRATEGIES (WRITTEN) (Community & Leg)

J. CALIFORNIA STRATEGIES, LLC MONTHLY ACTIVITY REPORT (WRITTEN) (Community & Leg)

6. AGENCY REPRESENTATIVES’ REPORTS

A. SAWPA REPORT (WRITTEN) January 19, 2021 SAWPA Commission meeting

B. MWD REPORT (WRITTEN) January 12, 2021 MWD Board meeting

5

C. REGIONAL SEWERAGE PROGRAM POLICY COMMITTEE REPORT (WRITTEN) January 7, 2021 Regional Sewerage Program Policy Committee meeting

D. CHINO BASIN WATERMASTER REPORT The next CBWM Board meeting is scheduled for January 28, 2021

E. CHINO BASIN DESALTER AUTHORITY (WRITTEN) January 7, 2021 CDA Board meeting

F. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY The next IERCA Board meeting is scheduled for February 1, 2021

7. GENERAL MANAGER’S REPORT (WRITTEN)

8. BOARD OF DIRECTORS’ REQUESTED FUTURE AGENDA ITEMS

9. DIRECTORS’ COMMENTS

A. CONFERENCE REPORTS

This is the time and place for the Members of the Board to report on prescheduled Committee/District Representative Assignment meetings, which were held since the last regular Board meeting, and/or any other items of interest.

10. CLOSED SESSION

A. PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(2)(e)1 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION One Case

ADJOURN

*A Municipal Water District

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Board Secretary/Office Manager (909) 993-1736, 48 hours prior to the scheduled meeting so that the Agency can make reasonable arrangements.

Declaration of Posting

I, Denise Garzaro, Board Secretary/Office Manager of the Inland Empire Utilities Agency*, A Municipal Water District, hereby certify that a copy of this agenda has been posted by 5:30 p.m. on the Agency’s website at www.ieua.org and at the Agency’s main office, 6075 Kimball Avenue, Building A, Chino, CA on Thursday, January 14, 2021.

Denise Garzaro, CMC

6

MINUTES OF A REGULAR MEETING OF THE CUCAMONGA VALLEY WATER DISTRICT BOARD OF DIRECTORS January 12, 2021

A regular meeting of the Cucamonga Valley Water District Board of Directors was CALL TO ORDER called to order at 6:00 p.m. by President Curatalo. Ms. Taya Victorino took roll call to 6:00 p.m. ensure all Board Members were present in person or via teleconference.

Vice President Reed announced: 1) The meeting is being conducted by teleconference pursuant to the Brown Act waivers provided for under the Governor’s Executive Orders in response to the COVID-19 State of Emergency. 2) The agenda states that there will be no public location for attending this meeting in person. 3) The agenda also states that the public may listen and provide comment telephonically by calling the number listed on the agenda.

President Curatalo led the Pledge of Allegiance.

In Attendance: Board Randall James Reed, President Luis Cetina, Vice President James V. Curatalo, Jr., Director

Mark Gibboney, Director (via teleconference) Kevin Kenley, Director

Staff John Bosler, General Manager/CEO Jeff Ferre, BB&K, Legal Counsel (via teleconference) Maya Mouawad, BB&K, Legal Counsel (via teleconference)

Chad Brantley, Director of Finance and Technology Services Jason Cary, Help Desk Specialist Cindy Cisneros, Executive Assistant, General Manager Eduardo Espinoza, Director of Engineering Services Eric Grubb, Government & Public Affairs Manager (via teleconference) Carrie Guarino, Assistant General Manager (via teleconference) Rob Hills, Director of Operations Robert Kalarsarinis, Customer Service Manager (via teleconference) Praseetha Krishnan, Engineering Manager (via teleconference) Gidti Ludesirishoti, Associate Engineer (via teleconference) Mike Maestas, Water Production Manager Minutes – Regular Board Meeting of January 12, 2021 Page 2 of 7

Erin Morales, Government & Public Affairs Supervisor (via teleconference) Taya Victorino, Executive Assistant, Board of Directors

Guests Kathleen Tiegs, Past Board Member (via teleconference)

ADDITIONS/DELETIONS TO THE AGENDA ADDITIONS/ None. DELETIONS

PUBLIC COMMENT PUBLIC COMMENT None.

REORGANIZATION OF THE BOARD OF DIRECTORS REORGANIZATION A) Election of Officers OF THE BOARD OF President Curatalo opened the floor for nominations for the position of President of DIRECTORS the Board of Directors.

ELECTION OF Director Kenley nominated Director Reed. OFFICERS

There being no further nominations, President Curatalo requested a roll call vote. For the nomination of Reed as President, roll call vote: Ayes: Curatalo, Reed, Cetina, Gibboney, Kenley REED AS PRESIDENT Noes: None Abstain: None PASSED 5-0 Absent: None Passed 5-0.

Director Curatalo passed the gavel to Director Reed to lead the remainder of the meeting as President.

President Reed opened the floor for nominations for the position of Vice President of the Board of Directors.

President Reed nominated Director Kenley.

Director Gibboney nominated Director Kenley.

Minutes – Regular Board Meeting of January 12, 2021 Page 2 of 7

On a motion by President Reed, and a second by Director Kenley to elect KENLEY AS VICE Kenley as Vice President by roll call vote: PRESIDENT Ayes: Reed, Kenley Noes: Curatalo, Cetina, Gibboney FAILED 2-3 Abstain: None Absent: None

Motion failed.

On a motion by Director Cetina, and a second by Director Curatalo to elect CETINA AS VICE Cetina as Vice President by roll call vote: PRESIDENT Ayes: Reed, Curatalo, Cetina, Gibboney, Kenley Noes: None PASSED 5-0 Abstain: None Absent: None Passed 5-0.

B) Board Committees

President Reed recommended the following appointments to Board Committees and announced that the Chair position will be appointed at the next meeting of each Committee:

Engineering: Reed/Kenley

Finance: Reed/Gibboney

Government & Public Affairs: Cetina/Kenley

Human Resources/Risk Management: Curatalo/Gibboney BOARD COMMITTEES Water Resources: Curatalo/Cetina

On a motion by Director Cetina, and seconded by Director Curatalo to approve the recommended slate for Board Committee appointments as proposed PASSED 5-0 above by roll call vote: Ayes: Reed, Cetina, Curatalo, Gibboney, Kenley Noes: None Abstain: None

Absent: None

Passed 5-0.

Minutes – Regular Board Meeting of January 12, 2021 Page 2 of 7

C) Fontana Union Water Company Board President Reed proposed the following appointments: Director: Reed/Cetina/Gibboney FONTANA UNION Kenley as Alternate WATER COMPANY BOARD

On a motion by Director Curatalo, and seconded by Director Kenley to PASSED 5-0 approve the recommended slate for the Fontana Union Water Company Board of

Directors representatives as proposed above by roll call vote: Ayes: Reed, Cetina, Curatalo, Gibboney, Kenley Noes: None Abstain: None Absent: None Passed 5-0.

D) Board Appointments

ACWA/JPIA Board of Directors President Reed proposed the following appointments: Representative: Reed ACWA/JPIA BOARD Alternate: Gibboney OF DIRECTORS

On a motion by Vice President Cetina, and seconded by Director Curatalo PASSED 5-0 to approve the Board appointments to the ACWA/JPIA Board of Directors as proposed by roll call vote: Ayes: Reed, Cetina, Curatalo, Gibboney, Kenley

Noes: None

Abstain: None

Absent: None Passed 5-0.

Chino Basin Water Bank Planning Authority President Reed proposed the following appointments: CHINO BASIN Representative: Cetina WATER BANK Alternate: Kenley PLANNING AUTHORITY

On a motion by Director Curatalo, and seconded by Director Gibboney to PASSED 5-0 approve the Board appointments to the Chino Basin Water Bank Planning Authority as proposed by roll call vote: Ayes: Reed, Cetina, Curatalo, Gibboney, Kenley Noes: None Abstain: None Absent: None Passed 5-0. Minutes – Regular Board Meeting of January 12, 2021 Page 2 of 7

IEUA Regional Sewerage Policy Committee President Reed proposed the following appointments: Representative: Reed Alternate: Cetina IEUA REGIONAL SEWERAGE POLICY

COMMITTEE On a motion by Director Curatalo, and seconded by Director Kenley to approve the Board appointments to the IEUA Regional Sewerage Policy Committee as PASSED 5-0 proposed by roll call vote: Ayes: Reed, Cetina, Curatalo, Gibboney, Kenley Noes: None Abstain: None Absent: None Passed 5-0.

GENERAL MANAGER/CEO REPORTS GENERAL A) District Updates MANAGER/CEO Mr. John Bosler, General Manager/CEO reported the following: REPORTS  As a reminder, District offices are closed on Monday, January 18, 2021 in observance of Dr. Martin Luther King, Jr. Day.  Provided in the Board Packet is a copy of the IEUA Regional Sewerage Policy Committee agenda in which President Reed will continue to represent CVWD.  Also provided in the Board Packet is our Service Beyond Expectation Moments in which Director Kenley submitted an email he wrote:

Director Kenley elaborated on the situation he submitted and expressed his gratitude to Julia Metzler and Shawn Spromberg for the excellent assistance they provided his neighbor.

CONSENT CALENDAR UPDATE!!! CONSENT A) Approve Minutes of the December 8, 2020 Regular Board Meeting. CALENDAR B) Approve Board Calendar of Events. C) Receive and File November 2020 Water Production Report. PASSED 5-0 D) Approve Cash & Investment Report for month ending November 30, 2020.

E) Receive and File Monthly Financial Results Report for month ending October 31, 2020. F) Approve Cash Disbursements for month ending November 30, 2020. G) Adopt Resolution No. 2021-1-1 Amending Administrative Policy No. 1.9, Customer Assistance Program.

Minutes – Regular Board Meeting of January 12, 2021 Page 2 of 7

On a motion by Director Kenley, and seconded by Vice President Curatalo to approve the Consent Calendar Items as submitted by Roll Call Vote: Ayes: Reed, Cetina, Curatalo, Gibboney, Kenley Noes: None Abstain: None Absent: None Passed 5-0.

BOARD COMMITTEE REPORT BOARD COMMITTEE A) October 20, 2020 Water Resources Committee REPORTS Director Curatalo reported the notes accurately reflect what occurred at the meeting. B) November 17, 2020 Water Resources Committee Director Curatalo reported the notes accurately reflect what occurred at the meeting. C) December 1, 2020 Engineering Committee President Reed reported the notes accurately reflect what occurred at the meeting. D) December 9, 2020 Finance Committee President Reed reported the notes accurately reflect what occurred at the meeting. E) December 14, 2020 Government & Public Affairs Committee Vice President Cetina reported the notes accurately reflect what occurred at the meeting.

Vice President Cetina recognized Director Gibboney for his service on the Government & Public Affairs Committee and expressed his gratitude for the opportunity to work together on the Legislative Policy Principles.

Director Gibboney expressed his gratitude for the opportunity and wished Director Kenley the same pleasant experience on the committee.

BOARD MEMBER REPORTS BOARD MEMBER Director Gibboney REPORTS  Nothing additional to add at this time. Director Kenley  Congratulated President Reed and Vice President Cetina and thanked Director Curatalo for his service to the Board and District as President. Vice President Cetina  Expressed his gratitude to Director Kenley for his Service Beyond Expectation Moments entry and commended him for highlighting the human element in the service we provide our community.

Minutes – Regular Board Meeting of January 12, 2021 Page 2 of 7

Director Curatalo  Expressed his gratitude for the honor to serve as Board President for so many years. He is looking forward to President Reed and Vice President Cetina’s leadership. Vice President Reed  Expressed his gratefulness to his fellow Directors for trusting him in the roll of Board President and expressed his gratitude for the opportunity to serve and help lead the District.

ADJOURNMENT ADJOURNED There being no further business to come before the Board, President Reed adjourned AT 6:32 p.m. the meeting at 6:32 p.m. in recognition of Director Curatalo for his six years of service as Board President.

______John Bosler Secretary/General Manager ATTEST:

______James V. Curatalo, Jr. President

BOARD OF DIRECTORS CALENDAR OF EVENTS

DATE OF EVENT DETAILS CURATALO CETINA GIBBONEY KENLEY REED PageBOSLER* 1 of 4 EVENT (Last Revised 01- 21-21) 2021 January 25 ASBCSD Member Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Dec. 8 Dec. 8 Dec. 8 Dec. 8 Dec. 8

January 27 Rancho Chamber of Commerce Board Mtg Yes Webinar Appr Dec. 8

January 28 CBWM Board Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Dec. 8 Dec. 8 Dec. 8 Dec. 8 Dec. 8

January 29 IE Chamber Alliance Meeting Yes Webinar Appr Jan. 26

January 29 CBWM Ag Expense Court Hearing Yes Yes Yes Yes Yes Yes Teleconference Appr Appr Appr Appr Appr Jan. 12 Jan. 12 Jan. 12 Jan. 12 Jan. 12

Feb. 3 IEUA Board Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Jan. 12 Jan. 12 Jan. 12 Jan. 12 Jan. 12

Feb. 3 Superintendent Alejandre Regional Advisory Yes Webinar Appr Jan. 26

* For scheduling and Board information purposes only (Please note all Committee and Board Meetings are not listed on the Calendar of Events)

BOARD OF DIRECTORS CALENDAR OF EVENTS

Page 2 of 4 (Last Revised 01-21-21) DATE OF EVENT DETAILS CURATALO CETINA GIBBONEY KENLEY REED BOSLER* EVENT 2021 Feb. 11 CBWM Appropriative Pool Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Jan. 12 Jan. 12 Jan. 12 Jan. 12 Jan. 12

Feb. 11 WRI Advisory Board Meeting Yes Webinar Appr Jan. 12

Feb. 17 IEUA Board Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Jan. 12 Jan. 12 Jan. 12 Jan. 12 Jan. 12

Feb. 18 CBWM Advisory Committee Meeting Yes Webinar Appr Jan. 12

Feb. 24 RC Chamber Board Meeting Yes Webinar Appr Jan. 12

Feb. 25 CBWM Board Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Jan. 12 Jan. 12 Jan. 12 Jan. 12 Jan. 12

Feb. 26 IE Chamber Alliance Meeting Yes Webinar Appr Jan. 26

* For scheduling and Board information purposes only (Please note all Committee and Board Meetings are not listed on the Calendar of Events)

BOARD OF DIRECTORS CALENDAR OF EVENTS

Page 3 of 4 (Last Revised 01-21-21) POST EVENT APPROVAL (BOARD CALENDAR OF EVENTS) DATE OF EVENT DETAILS CURATALO CETINA GIBBONEY KENLEY REED BOSLER* EVENT 2021 Jan. 19 ACWA Region 9 Leadership Session Yes Webinar Appr Jan. 26

Jan. 21 CBWM Advisory Committee Meeting Yes Yes Yes Webinar Appr Appr Jan. 12 Jan. 26

Jan. 21 CBWM Appropriative Pool Meetings Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Jan. 26 Jan. 26 Jan. 26 Jan. 26 Jan. 26

Jan. 21 ACWA Region 9 State Legislative Cmte Yes Webinar Appr Jan. 26

* For scheduling and Board information purposes only (Please note all Committee and Board Meetings are not listed on the Calendar of Events)

BOARD OF DIRECTORS CALENDAR OF EVENTS

Page 4 of 4 (Last Revised 01-21-21)

UPCOMING DISTRICT & COMMUNITY EVENTS 01/28/21 CVWD Landscape Webinar- Pruning & Maintenance 02/11/21 CVWD Landscape Webinar- Rain Harvesting for Home Landscapes 02/15/21 Office Closed for President’s Day 03/04/21 CVWD Landscape Webinar- Raised Bed Construction and Veggie Gardening 03/15 to 03/21/21 Fix a Leak Week 03/18/21 CVWD Webinar- Find & Fix a Leak March 2021 ACWA Legislative Symposium (Tentative) 04/19 to 04/23/21 CVWD Earth Week Celebration 04/22/21 CVWD Webinar- Succulent Savvy 05/01 to 05/02/21 CVWD Drive by Garden Tour 05/11 to 05/14/21 ACWA Spring Conference in Monterey 05/18 to 05/19/21 Special Districts Legislative Days 05/31/21 Office Closed for Memorial Day 07/05/21 Office Closed for Independence Day 09/06/21 Office Closed for Labor Day 11/11/21 Office Closed for Veteran’s Day 11/25 to 11/26/21 Office Closed for Thanksgiving Holiday 11/30 to 12/03/21 ACWA Fall Conference in Pasadena 12/24/21 Office Closed for Christmas Holiday

* For scheduling and Board information purposes only (Please note all Committee and Board Meetings are not listed on the Calendar of Events)

Staff Report Date : January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: PARS Quarterly Investment Report – December 31, 2020

Purpose The District’s Administrative Policy No. 1.6, PARS Investment requires that the Chief Financial Officer provide a quarterly report of investments to the Board of Directors. This report demonstrates the commitment to provide timely and transparent financial reporting.

Background/Analysis The total portfolio market value as of December 31, 2020 is $7,777,677. This portfolio consists of cash and cash equivalents of $141,017, and mutual fund holdings of $7,636,660. The total market value of the portfolio holdings increased by $606,090 during the quarter ended December 31, 2020.

The Policy establishes asset allocations in order to achieve the greatest likelihood of meeting the plan’s investment objectives and the best balance between risk and return. The following table outlines the District’s holdings and the established target asset allocations:

Asset Allocation Asset Allocation Actual Allocation Asset Classes Range Target 12/31/2020 Cash Equivalent 0 – 20% 2% 1.81% Domestic Equity 23 – 43% 33% 37.61% International Equity 7 – 27% 17% 16.18% REITs 0 – 15% 0% 0.00% Fixed Income 30 – 70% 48% 44.40%

In the section titled “Reconciliation of Total Market Value Return”, the annualized total return for the six months ended December 31, 2020 is 25.6%. This section shows a calculation of the portfolios annualized total return since the beginning of the fiscal year which is very different from the portfolio’s yield. The yield includes only dividends, while the annualized total return includes dividends and changes in market value. This total return is a reflection of a market value gain during the months of July through December. The annualized total return figure is expected to be volatile; however, it is a way of quantifying the portfolio’s recent overall performance.

Alignment with Strategic Goals Providing a quarterly PARS Investment Report supports the District’s values of Accountability and Communication by providing financial transparency of the performance and amount of the investments held.

Jnauary 26, 2021 PARS Quarterly Investment Report – December 31, 2020 Page 2

Fiscal Impact None

Recommendation Staff recommends the Board of Directors approve the PARS Quarterly Investment Report as presented.

Attachment: PARS Quarterly Investment Report, December 31, 2020

Submitted by: Chad Brantley, Director of Finance and Technology Services Prepared By: Agnes Boros, Finance Manager CUCAMONGA VALLEY WATER DISTRICT Quarterly PARS Investment Report For the Quarter Ended December 31, 2020

SUMMARY OF ASSETS Book Market Percent of Target Current Investments Value Value Portfolio Allocation Yield (historical cost) (market value) Money Market Account $ 141,017 $ 141,017 1.81% 2.00% 0.04% Equity Mutual Funds REIT - - 0.00% 0.00% 0.00% Equity Mutual Funds International 991,821 1,258,322 16.18% 17.00% 1.20% Equity Mutual Funds Domestic 1,841,793 2,925,569 37.61% 33.00% 1.28% Fixed Income Mutual Funds 3,316,440 3,452,769 44.40% 48.00% 3.04%

Total Cash and Investments $ 6,291,071 $ 7,777,677 100.00% 100.00%

Portfolio Effective Yield 2.03%

Portfolio Target Rate of Return 5.00%

Domestic

Portfolio International Allocation REIT

(Market Value) Money Fixed Market Income

RECONCILIATION OF TOTAL MARKET VALUE RETURN Fiscal Year 2021 Market Market Adjustment for Adjusted Change Annualized Six months ending 12/31/2020 Value Value Fees, Distributions In Portfolio Total 6/30/2020 12/31/2020 and Contributions Value Return Total Portfolio $ 6,830,248 $ 7,777,677 $ 49,292 $ 996,721 25.6%

CURRENT QUARTER INVESTMENT INCOME

Month Interest Dividends Income October $ 5 $ 14,763 November 5 8,227 December 3 30,697

Total Interest Earned $ 13 $ 53,687

STAFF REPORT Date: January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Cash and Investment Report – December 31, 2020

Purpose Government Code section 53646 states that the treasurer or chief fiscal officer may render to the legislative body of the local agency a statement of investments on a quarterly basis. The District adopted a stricter standard of reporting on a monthly basis in its Investment Policy which demonstrates the commitment to provide timely and transparent financial reporting.

Background/Analysis The total unrestricted cash balance of $54,010,525 (LAIF + Cash), indicated in the report is sufficient to meet CVWD’s estimated expenditure requirements for the next six months. The book value (at historical cost) of unrestricted cash and investments is $98,027,094 of which $11,492,523 is the amount owed to the Inland Empire Utilities Agency for Sewer Capital Capacity Fees collected from developers on their behalf. The total restricted cash balance of $358,342 (LAIF + Cash) is composed of reserve funds from the 2009 Clean Renewable Energy Bonds, and remaining acquisition funds from the 2018 Series A Revenue Bond.

The market value of non-cash investments held in the portfolio is subject to fluctuations due to changing market conditions. The District expects to hold investments to maturity which means these market gains or losses will not be realized due to an early sale. All investment activity for the period and the entire investment portfolio complies, in all aspects, with CVWD’s Investment Policy as approved by the Board of Directors on February 12, 2019.

Alignment with Strategic Goals Providing a detailed monthly Investment Report supports the District’s values of Accountability and Communication by providing financial transparency of the performance and amount of the investments held.

Fiscal Impact None

Recommendation Staff recommends the Board of Directors approve the Investment Report as presented.

Attachment: Cash and Investment Report, December 31, 2020

Submitted by: Chad Brantley, Director of Finance & Technology Services Prepared By: Agnes Boros, Finance Manager

INVESTMENT

PORTFOLIO

RESTRICTED FUNDS

December 31, 2020

CUCAMONGA VALLEY WATER DISTRICT Cash and Investment Report - (SUMMARY) For the Period Ended December 31, 2020 Restricted Funds

SUMMARY OF PORTFOLIO ASSETS Book Adj. Market Percent of Current Book Value Category Value Book Value Portfolio Yield Yield-to- (historical cost) Value (market value) (market value) Maturity Cash & Equivalents: Money Market Account 30,997 30,997 30,997 8.65% 0.01% 0.01% Total Cash & Equivalents $ 30,997 $ 30,997 $ 30,997 8.65%

Investments: Local Agency Investment Fund $ 327,345 $ 327,345 $ 327,345 91.35% 0.54% 0.54% Total Investments$ 327,345 $ 327,345 $ 327,345 91.35%

Total Cash and Investments$ 358,342 $ 358,342 $ 358,342 100.00% Portfolio Effective Rate of Return 0.49% 0.49%

SUMMARY OF PORTFOLIO LIQUIDITY Par Value Book Percent Market Percent (Predicted by Percent Value of Value of call or of (historical cost) Portfolio Portfolio maturity) Portfolio On Demand $ 358,342 100.00%$ 358,342 100.00%$ 358,342 100.00% Total $ 358,342 100.00%$ 358,342 100.00%$ 358,342 100.00%

SUMMARY OF PORTFOLIO OWNERSHIP PORTFOLIO PERFORMANCE BENCHMARKS Book Percent Value of Yield (historical cost) Portfolio District - Restricted $ 358,342 100.00% 1YR US Treasury Rolling Average 0.38% 2YR US Treasury Rolling Average 1.18% 3YR US Treasury Rolling Average 1.66% 5YR US Treasury Rolling Average 1.70% Total Cash and Investments$ 358,342 100.00% Cucamonga Valley Water Restricted Fund Portfolio Management Portfolio Summary December 31, 2020

Par Market Book % of Days to YTM Investments Value Value Value Portfolio Term Mat./Call Money Market Account 30,996.81 30,996.81 30,996.81 8.65 1 1 0.010 Local Agency Investment Funds 327,345.39 327,345.39 327,345.39 91.35 1 1 0.540 358,342.20 358,342.20 358,342.20 100.00% 1 1 0.494 Investments

Total Earnings December 31 Month Ending Fiscal Year To Date Current Year 160.08 5,446.08 Average Daily Balance 358,342.20 Effective Rate of Return 0.53%

______1/13/2021 Chad Brantley CPA, Director of Finance

Reporting period 12/01/2020-12/31/2020 Portfolio GEN2 Data Updated: FUNDSNAP: 01/12/2021 14:09 NL! AP Run Date: 01/12/2021 - 14:09 PM (PRF_PM1) 7.2.5 Report Ver. 7.3.1 Restricted Fund

Portfolio Management Page 1 Portfolio Details - Investments December 31, 2020

Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Mat./Call Date Money Market Account 2018A RB IMPROV 10448 US BANKCORP NTS 1,710.85 1,710.85 1,710.85 0.010 0.010 0.010 1 2009 COP RES 10131 Wells Fargo Co 0.00 0.00 0.00 0.010 0.010 0.010 1 2009 CREB RES 10136 Wells Fargo Co 29,285.96 29,285.96 29,285.96 0.010 0.010 0.010 1

Subtotal and Average 30,996.81 30,996.81 30,996.81 30,996.81 0.010 0.010 1 Local Agency Investment Funds LAIF 09 COP RES 10134 Local Agency Investment Fund 0.00 0.00 0.00 0.784 0.773 0.784 1 LAIF 2018A RB 10450 Local Agency Investment Fund 327,345.39 327,345.39 327,345.39 0.540 0.533 0.540 1

Subtotal and Average 327,345.39 327,345.39 327,345.39 327,345.39 0.533 0.540 1

Total and Average 358,342.20 358,342.20 358,342.20 358,342.20 0.487 0.494 1

Portfolio GEN2 Data Updated: FUNDSNAP: 01/12/2021 14:09 NL! AP Run Date: 01/12/2021 - 14:09 PM (PRF_PM2) 7.2.5

Report Ver. 7.3.1

INVESTMENT

PORTFOLIO

UNRESTRICTED FUNDS

December 31, 2020

CUCAMONGA VALLEY WATER DISTRICT Cash and Investment Report - (SUMMARY) For the Period Ended December 31, 2020 Unrestricted Funds

SUMMARY OF PORTFOLIO ASSETS Book Adj. Market Percent of Current Book Value Category Value Book Value Portfolio Yield Yield-to- (historical cost) Value (market value) (market value) Maturity Cash & Equivalents: Checking Accounts $ 2,037,460 $ 2,037,460 $ 2,037,460 2.05% 0.00% 0.00% Sweep Account - - - 0.00% 0.00% 0.00% Money Market Account 1,525,759 1,525,759 1,525,759 1.53% 0.03% 0.03% Total Cash & Equivalents$ 3,563,219 $ 3,563,219 $ 3,563,219 3.58%

Investments: Local Agency Investment Fund$ 50,447,306 $ 50,447,306 $ 50,447,306 50.69% 0.54% 0.54% CVWD Portfolio Federal Agencies 6,147,786 6,153,453 6,378,375 6.41% 1.76% 1.84% Corporate Medium-Term Notes 12,551,448 12,538,700 13,062,900 13.12% 2.53% 2.40% Negotiable CDs - - - 0.00% 0.00% 0.00% U.S. Treasuries 25,317,335 25,308,110 26,072,812 26.20% 1.77% 1.95% Total Investments$ 94,463,875 $ 94,447,569 $ 95,961,393 96.42%

Total Cash and Investments$ 98,027,094 $ 98,010,788 $ 99,524,612 100.00% Portfolio Effective Rate of Return 1.18% 1.22%

SUMMARY OF PORTFOLIO LIQUIDITY Par Value Book Percent Market Percent (Predicted by Percent Value of Value of call or of (historical cost) Portfolio Portfolio maturity) Portfolio On Demand$ 50,447,306 53.40%$ 50,447,306 52.57%$ 50,447,306 53.40% Within Year 2020 15,950,072 16.88% 16,035,677 16.71% 15,950,072 16.88% Within Year 2021 8,221,750 8.70% 8,559,571 8.92% 8,221,750 8.70% Within Year 2022 4,991,364 5.28% 5,199,785 5.42% 4,991,364 5.28% Within Year 2023 14,853,383 15.72% 15,719,054 16.38% 14,853,383 15.72% Within Year 2024 - 0.00% - 0.00% 0 0.00%

Total$ 94,463,875 100.00%$ 95,961,393 100.00%$ 94,463,875 100.00%

SUMMARY OF PORTFOLIO OWNERSHIP PORTFOLIO PERFORMANCE BENCHMARKS Book Percent Value of Yield (historical cost) Portfolio 1YR US Treasury Rolling Average 0.38% District - Unrestricted$ 86,534,571 88.28%2YR US Treasury Rolling Average 1.18% Amount owed to IEUA for Sewer 3YR US Treasury Rolling Average 1.66% Capital Capacity Fees 11,492,523 11.72%5YR US Treasury Rolling Average 1.70% Total Cash and Investments$ 98,027,094 100.00% Cucamonga Valley Water General Fund - Unrestricted Portfolio Management Portfolio Summary December 31, 2020

Par Market Book % of Days to YTM Investments Value Value Value Portfolio Term Mat./Call Checking Account 2,037,460.37 2,037,460.37 2,037,460.37 2.08 1 1 0.000 Money Market Account 1,525,759.14 1,525,759.14 1,525,759.14 1.56 1 1 0.030 Local Agency Investment Funds 50,447,305.73 50,447,305.73 50,447,305.73 51.47 1 1 0.540 Medium Term Notes 12,428,000.00 13,062,899.55 12,538,700.57 12.79 1,600 816 2.403 Federal Agency Bullets 6,160,000.00 6,378,373.70 6,153,452.06 6.28 1,807 610 1.841 Treasury Coupon Securities 25,350,000.00 26,072,813.25 25,308,109.66 25.82 1,548 636 1.945 97,948,525.24 99,524,611.74 98,010,787.53 100.00% 718 308 1.204 Investments

Cash and Accrued Interest Accrued Interest at Purchase 20,284.47 20,284.47 Subtotal 20,284.47 20,284.47 Total Cash and Investments 97,948,525.24 99,544,896.21 98,031,072.00 718 308 1.204

Total Earnings December 31 Month Ending Fiscal Year To Date Current Year 99,141.42 654,091.20 Average Daily Balance 94,128,776.85 Effective Rate of Return 1.24%

______1/13/2021 Chad Brantley CPA, Director of Finance

Reporting period 12/01/2020-12/31/2020 Portfolio GEN2 Data Updated: FUNDSNAP: 01/12/2021 14:09 NL! AP Run Date: 01/12/2021 - 14:09 PM (PRF_PM1) 7.2.5 Report Ver. 7.3.1 General Fund - Unrestricted

Portfolio Management Page 1 Portfolio Details - Investments December 31, 2020

Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Mat./Call Date Checking Account WELLS CKG 10111 Wells Fargo Co 2,037,460.37 2,037,460.37 2,037,460.37 0.000 0.000 1

Subtotal and Average 2,777,752.22 2,037,460.37 2,037,460.37 2,037,460.37 0.000 0.000 1 Money Market Account 82525287S 10344 Invesco Stit Govt & Agency 1,525,759.14 1,525,759.14 1,525,759.14 0.030 0.030 0.030 1 WELLS SWEEP 10112 Wells Fargo Co 0.00 0.00 0.00 0.033 0.033 0.033 1

Subtotal and Average 2,594,953.42 1,525,759.14 1,525,759.14 1,525,759.14 0.030 0.030 1 Local Agency Investment Funds LAIF GEN 10007 Local Agency Investment Fund 50,447,305.73 50,447,305.73 50,447,305.73 0.540 0.533 0.540 1

Subtotal and Average 43,221,499.28 50,447,305.73 50,447,305.73 50,447,305.73 0.533 0.540 1 Medium Term Notes 0258M0EB1 10401 AMERICAN EXPRESS CREDIT CORP 05/31/2016 178,000.00 178,907.80 177,972.25 2.250 2.267 2.298 94 05/05/2021 717081ES8 10464 AMHERST PIERPOINT SECURITIES L 04/05/2019 500,000.00 539,405.00 503,948.24 2.950 2.644 2.681 1,169 03/15/2024 02665WBP5 10496 American Honda Finance 01/13/2020 500,000.00 534,620.00 512,185.59 2.900 2.054 2.082 1,141 02/16/2024 037833CQ1 10447 Apple Inc 03/14/2018 1,000,000.00 1,027,760.00 991,250.70 2.300 2.947 2.988 465 05/11/2022 06406FAB9 10400 Bank of New York Mellon 05/23/2016 575,000.00 577,558.75 574,955.47 2.050 2.046 2.074 122 05/03/2021 06051GEU9 10492 Bank of America 12/06/2019 500,000.00 530,105.00 511,647.26 3.300 2.078 2.107 740 01/11/2023 05531FAV5 10397 Branch Banking & Trust 05/13/2016 275,000.00 276,328.25 274,992.50 2.050 2.030 2.058 129 05/10/2021 05531FAV5 10398 Branch Banking & Trust 05/13/2016 225,000.00 226,086.75 224,992.41 2.050 2.032 2.060 129 05/10/2021 05531FBH5 10476 Branch Banking & Trust 08/06/2019 500,000.00 532,545.00 502,001.48 2.500 2.346 2.379 1,277 08/01/2024 084670BR8 10494 Berkshire Hathaway 12/06/2019 500,000.00 525,080.00 509,142.11 2.750 1.822 1.847 803 03/15/2023 14913QAA7 10446 Caterpillar Finl Service 03/06/2018 500,000.00 515,115.00 495,837.92 2.400 2.982 3.024 521 06/06/2022 19416QEG1 10477 Colgate Palmolive 08/06/2019 500,000.00 545,195.00 518,982.92 3.250 1.959 1.986 1,169 03/15/2024 589331AT4 10461 Goldman Sachs Bank 03/15/2019 500,000.00 516,880.00 497,492.83 2.400 2.673 2.710 622 09/15/2022 427866AZ1 10463 Goldman Sachs Bank 04/05/2019 500,000.00 535,380.00 509,122.80 3.375 2.515 2.550 864 05/15/2023 244199BE4 10466 Goldman Sachs Bank 04/29/2019 575,000.00 591,491.00 574,845.92 2.600 2.583 2.619 523 06/08/2022 38141GVM3 10493 Goldman Sachs Bank 12/06/2019 500,000.00 552,485.00 524,167.47 4.000 2.355 2.388 1,157 03/03/2024 44932HAC7 10445 IBM 03/06/2018 500,000.00 517,435.00 492,953.26 2.200 3.060 3.102 615 09/08/2022 458140BB5 10436 Intel Corp 07/11/2017 500,000.00 513,025.00 500,029.57 2.350 2.313 2.345 495 05/11/2022 46625HJX9 10485 JPMorgan Chase Bank NA 09/09/2019 1,000,000.00 1,105,670.00 1,047,350.05 3.625 2.110 2.139 1,228 05/13/2024 91159HHX1 10475 KEYBANC CAPITAL MARKETS 08/06/2019 500,000.00 532,995.00 502,453.70 2.400 2.221 2.252 1,245 07/30/2024 88579YAX9 10502 3M Company 01/22/2019 600,000.00 626,628.00 590,229.49 2.250 2.999 3.041 775 03/15/2023 68389XBB0 10435 Oracle Corp 07/11/2017 500,000.00 513,370.00 501,218.00 2.500 2.279 2.311 499 05/15/2022 911312BT2 10501 United Parcel Service 09/09/2019 500,000.00 530,755.00 503,469.42 2.200 1.973 2.000 1,308 09/01/2024 254687FK7 10500 Walt Disney Company 09/09/2019 500,000.00 518,079.00 497,459.21 1.750 1.870 1.896 1,337 08/30/2024

Portfolio GEN2 Data Updated: FUNDSNAP: 01/12/2021 14:09 NL! AP Run Date: 01/12/2021 - 14:09 PM (PRF_PM2) 7.2.5

Report Ver. 7.3.1 General Fund - Unrestricted

Portfolio Management Page 2 Portfolio Details - Investments December 31, 2020

Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Mat./Call Date

Subtotal and Average 12,646,290.06 12,428,000.00 13,062,899.55 12,538,700.57 2.370 2.403 816 Federal Agency Bullets 3130A8QS5 10408 Federal Home Loan Bank 07/18/2016 1,000,000.00 1,005,370.00 999,278.94 1.125 1.247 1.264 194 07/14/2021 3130AFW94 10459 Federal Home Loan Bank 02/26/2019 1,710,000.00 1,832,983.20 1,705,415.50 2.500 2.557 2.592 1,138 02/13/2024 3135G0K69 10405 Federal National Mtg Assn 06/29/2016 1,525,000.00 1,530,947.50 1,525,515.03 1.250 1.134 1.149 125 05/06/2021 3135G0N82 10416 Federal National Mtg Assn 08/19/2016 635,000.00 639,546.60 634,676.74 1.250 1.316 1.334 228 08/17/2021 3135G0N82 10417 Federal National Mtg Assn 08/19/2016 190,000.00 191,360.40 189,918.30 1.250 1.303 1.321 228 08/17/2021 3135G0V34 10458 Federal National Mtg Assn 02/11/2019 1,100,000.00 1,178,166.00 1,098,647.55 2.500 2.508 2.543 1,130 02/05/2024

Subtotal and Average 6,153,357.93 6,160,000.00 6,378,373.70 6,153,452.06 1.816 1.841 610 Treasury Coupon Securities 912828WN6 10419 U.S. Treasury 09/06/2016 2,000,000.00 2,015,400.00 2,006,388.35 2.000 1.181 1.198 150 05/31/2021 912828D72 10421 U.S. Treasury 10/05/2016 1,000,000.00 1,012,500.00 1,005,024.78 2.000 1.199 1.216 242 08/31/2021 912828D72 10422 U.S. Treasury 12/05/2016 1,875,000.00 1,898,437.50 1,875,778.65 2.000 1.907 1.934 242 08/31/2021 912828G87 10433 U.S. Treasury 06/29/2017 1,700,000.00 1,733,864.00 1,705,712.55 2.125 1.748 1.772 364 12/31/2021 912828V72 10437 U.S. Treasury 07/11/2017 1,275,000.00 1,299,110.25 1,274,598.27 1.875 1.879 1.905 395 01/31/2022 912828F96 10440 U.S. Treasury 08/31/2017 1,000,000.00 1,015,510.00 1,002,838.45 2.000 1.622 1.644 303 10/31/2021 912828J76 10444 U.S. Treasury 11/30/2017 1,500,000.00 1,530,465.00 1,494,652.78 1.750 2.023 2.051 454 03/31/2022 912828N89 10452 U.S. Treasury 11/30/2018 1,500,000.00 1,501,365.00 1,498,253.27 1.375 2.809 2.848 30 01/31/2021 912828X47 10453 U.S. Treasury 11/30/2018 1,500,000.00 1,534,920.00 1,481,010.36 1.875 2.844 2.884 484 04/30/2022 912828V80 10460 U.S. Treasury 03/14/2019 500,000.00 531,955.00 497,265.73 2.250 2.406 2.439 1,125 01/31/2024 912828U65 10465 U.S. Treasury 04/16/2019 2,200,000.00 2,232,494.00 2,188,123.42 1.750 2.332 2.364 333 11/30/2021 912828X70 10467 U.S. Treasury 05/13/2019 1,150,000.00 1,218,908.00 1,139,739.91 2.000 2.254 2.285 1,215 04/30/2024 9128286R6 10468 U.S. Treasury 05/03/2019 1,250,000.00 1,335,162.50 1,247,267.88 2.250 2.288 2.320 1,215 04/30/2024 912828XT2 10469 U.S. Treasury 06/06/2019 1,000,000.00 1,061,250.00 1,005,158.52 2.000 1.816 1.841 1,246 05/31/2024 912828Y87 10474 U.S. Treasury 08/06/2019 2,000,000.00 2,109,540.00 2,006,784.87 1.750 1.628 1.651 1,307 07/31/2024 912828S92 10478 U.S. Treasury 08/15/2019 1,450,000.00 1,491,296.00 1,437,246.61 1.250 1.582 1.604 941 07/31/2023 912828S92 10479 U.S. Treasury 08/06/2019 1,450,000.00 1,491,296.00 1,438,461.08 1.250 1.548 1.570 941 07/31/2023 912828YY0 10495 U.S. Treasury 01/13/2020 1,000,000.00 1,059,340.00 1,003,804.18 1.750 1.628 1.650 1,460 12/31/2024

Subtotal and Average 26,734,923.95 25,350,000.00 26,072,813.25 25,308,109.66 1.918 1.945 636

Total and Average 94,128,776.85 97,948,525.24 99,524,611.74 98,010,787.53 1.187 1.204 308

Portfolio GEN2 Data Updated: FUNDSNAP: 01/12/2021 14:09 NL! AP Run Date: 01/12/2021 - 14:09 PM (PRF_PM2) 7.2.5

INVESTMENT

PORTFOLIO

SUPPLEMENTAL REPORTS

UNRESTRICTED FUNDS

December 31, 2020

Cucamonga Valley Water General Fund - Unrestricted Maturity Report Sorted by Maturity Date Amounts due during December 1, 2020 - December 31, 2020

Sec. Maturity Purchase Rate Book Value Maturity Net CUSIP Investment #Fund Type Issuer Par Value Date Date at Maturity at Maturity InterestProceeds Income

94974BGR510399 100 MTN WELLS 550,000.00 12/07/2020 05/16/2016 2.550550,000.00 7,012.50 557,012.50 7,012.50 912828A8310383 100 TRC USTR 1,475,000.00 12/31/2020 03/31/2016 2.3751,475,000.00 17,515.63 1,492,515.63 17,515.63

Total Maturities 2,025,000.00 2,025,000.00 24,528.13 2,049,528.13 24,528.13

Portfolio GEN2 Data Updated: ~REPORT~: 01/12/2021 14:27 NL! AP Run Date: 01/12/2021 - 14:27 MA (PRF_MA) 7.1.1 Report Ver. 7.3.1

INVESTMENT

PORTFOLIO

SUPPLEMENTAL INFORMATION

UNRESTRICTED FUNDS

December 31, 2020

CUCAMONGA VALLEY WATER DISTRICT Investment Policy Compliance Report For the Period Ended December 31, 2020 Unrestricted Funds

Investment Type Book Value Market Value CVWD Policy Limit Description of Limit Checking $ 2,037,460 $ 2,037,460 N/A None Sweep & Money Market 1,525,759 1,525,759 $ 19,904,922 Up to 20% of portfolio LAIF 50,447,306 50,447,306 65,000,000 Up to $65 Million Federal Agencies 6,147,786 6,378,375 99,524,612 Up to 100% of portfolio U.S. Treasuries 25,317,335 26,072,812 99,524,612 Up to 100% of portfolio Corp Medium Term Notes 12,551,448 13,062,900 29,857,384 Up to 30% of portfolio with 5 year maturity max Negotiable CDs - - 29,857,384 Up to 30% of portfolio Supranational - - 29,857,384 Up to 30% of portfolio with 5 year maturity max

Total Portfolio $ 98,027,094 $ 99,524,612

Portfolio Balances vs. CVWD Investment Policy Limits By Investment Type

$99,524,612 $99,524,612 $100

$80

$65,000,000

$60 Millions

$40 $29,857,384 $29,857,384 $29,857,384 $19,904,922 $20

$-

Book Value Market Value CVWD Policy Limit CUCAMONGA VALLEY WATER DISTRICT History of Portfolio Balances Fiscal Year 2021

Investment Type 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018 12/31/2018 6/30/2019 12/31/2019 6/30/2020 12/31/2020 Total Unrestricted Portfolio (Par Value)$ 81,908,453 $ 81,020,789 $ 92,469,280 $ 98,913,977 $ 86,877,228 $ 95,254,453 $ 92,693,569 $ 87,988,215 $ 86,556,242 $ 85,782,277 $ 86,222,334 $ 93,154,469 $ 97,948,525 Total Unrestricted Portfolio (Market Value) 82,055,362 81,288,476 92,281,085 100,196,822 86,947,347 95,444,128 92,435,786 87,116,157 85,878,522 86,029,545 86,724,798 95,076,870 99,524,612 Total Unrestricted Cash 35,985,453 31,209,789 38,863,417 40,734,977 27,601,228 36,273,951 31,681,405 29,516,446 28,071,502 26,573,444 26,689,334 37,646,469 54,010,525 Total Unrestricted Bond Portfolio 45,923,000 49,811,000 53,605,863 58,179,000 59,276,000 58,980,502 61,012,164 58,471,769 58,484,740 59,208,833 59,533,000 55,508,000 43,938,000 Total Restricted Cash 18,384,181 12,027,115 16,641,851 35,854,904 6,936,748 4,068,712 2,820,353 12,679,273 12,498,533 9,039,322 9,156,439 3,885,117 358,342 Total Unrestricted Portfolio Yield 0.75% 0.84% 0.91% 1.06% 1.20% 1.28% 1.44% 1.70% 1.87% 2.03% 1.92% 1.63% 1.20%

CUCAMONGA VALLEY WATER DISTRICT 6‐Year History Porfolio Balances and Investment Yields

$120,000,000 5.00%

4.50%

$100,000,000 4.00%

3.50% $80,000,000

3.00%

$60,000,000 2.50%

2.00%

$40,000,000 1.50%

1.00% $20,000,000

0.50%

$‐ 0.00% 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018 12/31/2018 6/30/2019 12/31/2019 6/30/2020 12/31/2020

Total Unrestricted Portfolio (Par Value) Total Unrestricted Portfolio (Market Value) Total Unrestricted Cash Total Unrestricted Bond Portfolio Total Restricted Cash Total Unrestricted Portfolio Yield History of Market Rates 3.00 LAIF 1-Yr UST Rolling Average 2-Yr UST Rolling Average

2.50 3-Yr UST Rolling Average 5-Yr UST Rolling Average CVWD

2.00

1.50 Percentage

1.00

0.50

0.00 2/2016 4/2016 6/2016 8/2016 2/2017 4/2017 6/2017 8/2017 2/2018 4/2018 6/2018 8/2018 2/2019 4/2019 6/2019 8/2019 2/2020 4/2020 6/2020 8/2020 12/2015 10/2016 12/2016 10/2017 12/2017 10/2018 12/2018 10/2019 12/2019 10/2020 12/2020 Analysis of Investment Porfolio Performance Interest Income - Actual vs Budget For the Period Ended December 31, 2020 All Funds 1,800,000

Remaining Budget 1,630,100

1,600,000 Prorated Budget

Actual 1,454,500 1,400,000

1,200,000

1,000,000

800,000 815,050 727,250

600,000

400,000 350,009

155,600 199,397 200,000 145,101 20,000 77,800 10,000 5,511 - Restricted Funds LAIF Bonds Totals

STAFF REPORT Date : January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Financial Results Report – 11/30/2020

Purpose Staff has prepared financial operating statements for the Water Fund, Sewer Fund, and Recycled Water Fund, comparing actual results to the prorated budget to help the Board evaluate the District’s financial performance. The amounts represented in the reports have been reviewed and adjusted by staff in accordance with generally accepted accounting principles. Amounts reported are compiled before the annual audit and are intended to be used as an estimate only.

Background/Analysis The data represented in the report reflects the results of operations for the five-month period ended November 30, 2020. The District continues to focus on operating within its overall budget objectives for each of the funds. Total Water Fund revenues are 7% above the prorated budget for the period and expenses are 2% above the prorated budget for the period.

Water Sales are 9% above the prorated budget due to higher than expected water consumption. Consumption forecasts indicated that 20,973 acre feet would be sold through November. However, 22,733 acre feet have been sold, which is 8% above the forecast.

The Source of Supply expense category is 32% above the prorated budget, with forecasted water purchased of 13,457 acre feet budgeted as compared to 18,220 acre feet actual. The Pumping expense category is 78% below the prorated budget. Overall groundwater production was budgeted to be 7,970 acre feet as compared to 3,990 acre feet actual. During the first five months of the fiscal year, the District purchased 11,700 acre feet of water from MWD through the Dry Year Yield program. The water was produced by the District’s Chino Basin groundwater wells from MWD’s storage account. The District purchased the water from MWD for the net price of $381, which is lower than the prior fiscal year price of $456.33. The price was determined by subtracting an operating credit of $374 per acre foot from the cost of tier 1 imported water.

Sewer Fund revenues are 2% above the prorated budget and corresponding sewer expenses are even with the forecasts for the period. Recycled water revenues are recognized at 5% below the prorated budget while corresponding recycled water expenses are 10% below forecasts for the period.

There are no other significant events to report to the Board for the period. The Net Operating Income for the period is being recognized at 22% above the prorated budget for the Water Fund, 51% above for the Sewer Fund, and 32% above for the Recycled Water Fund.

January 26, 2021 Financial Results Report – November 30, 2020 Page 2

Alignment with Strategic Goals Approval of the Financial Results Report aligns with the CVWD core value of accountability by highlighting the efforts the District makes to maintain financial transparency and practice good stewardship of financial resources.

Fiscal Impact There is no fiscal impact.

Recommendation It is recommended that the Board review and approve the information provided.

Attachments: Financial Results Report – November 30, 2020

Submitted by: Chad Brantley, Director of Finance and Technology Services Prepared By: Agnes Boros, Finance Manager

Financial Results Report Reporting Operating Activity November 30, 2020

Prepared by the Accounting Division

Page 1 Cucamonga Valley Water District Financial Results Report November 30, 2020 - Unaudited Water Fund

Annual Budget YTD Budget YTD Actual Variance YTD % Variance Operating Revenues Water Sales $ 50,458,476 $ 24,024,569 $ 26,291,132 $ 2,266,563 9% Meter Charges 23,917,867 9,965,379 9,587,366 (378,014) (4%) Water Services 1,223,832 509,910 274,401 (235,508) (46%) Sales to Others 4,541,300 135,953 133,207 (2,746) 0% Sales to Fontana Water Company 1,515,797 631,557 1,544,698 913,141 145% Total Operating Revenues 81,657,272 35,267,368 37,830,804 2,563,436 7%

Operating Expenses Source of Supply 26,365,800 12,160,115 16,107,388 (3,947,274) (32%) Pumping 6,989,517 3,137,172 692,587 2,444,585 78% Water Treatment 5,638,356 2,349,221 1,831,553 517,668 22% Transmission & Distribution 3,097,551 1,290,748 1,300,848 (10,101) (1%) Customer Accounts 3,717,548 1,548,917 1,485,871 63,046 4% General & Administrative 13,505,230 5,626,803 5,249,825 376,978 7% Total Operating Expenses 59,314,002 26,112,976 26,668,072 (555,098) (2%)

Net Operating Income/(Loss) $ 22,343,270 $ 9,154,392 $ 11,162,732 $ 2,008,338 22%

$60,000,000 Revenues Annual Budget Expenses YTD Budget YTD Actual

$50,000,000

$40,000,000

$30,000,000

$20,000,000

$10,000,000

$- Water Sales Meter Charges Water Services Sales to Others Sales to Source of Pumping Water Transmission & Customer General & Fontana Water Supply Treatment Distribution Accounts Administrative Company

2 Cucamonga Valley Water District Financial Results Report November 30, 2020 - Unaudited Sewer Fund

Annual Budget YTD Budget YTD Actual Variance YTD % Variance Operating Revenues Sewer Services $ 4,649,578 $ 1,933,639 $ 1,985,561 $ 51,922 3% IEUA Treatment Charge 16,078,820 6,686,649 6,774,059 87,410 1% Total Operating Revenues 20,728,398 8,620,288 8,759,620 139,332 2%

Collection and Transmission 17,943,132 7,463,415 7,559,954 (96,539) (1%) Customer Accounts 578,356 240,972 218,049 22,923 10% General & Administrative 3,048,349 1,270,095 1,156,855 113,240 9% Total Operating Expenses 21,569,837 8,974,482 8,934,858 39,624 0%

Net Operating Income/(Loss) $ (841,439) $ (354,194) $ (175,238) $ 178,956 51%

Annual Budget $20,000,000 Revenues Expenses YTD Budget YTD Actual $18,000,000

$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$- Sewer Services IEUA Treatment Charge Collection and Transmission Customer Accounts General & Administrative

3 Cucamonga Valley Water District Financial Results Report November 30, 2020 - Unaudited Recycled Water Fund

Annual Budget YTD Budget YTD Actual Variance YTD % Variance Operating Revenues Recycled Water Sales & Services $ 1,005,157 $ 521,296 $ 499,167 $ (22,129) (4%) Meter Charges 175,593 73,161 67,366 (5,794) (8%) Total Operating Revenues 1,180,750 594,457 566,533 (27,923) (5%)

Source of Supply 627,147 326,234 308,906 17,328 5% Transmission & Distribution 138,064 57,524 52,622 4,903 9% Customer Accounts 113,158 47,147 29,763 17,384 37% General and Administrative 200,877 83,696 69,948 13,748 16% Total Operating Expenses 1,079,246 514,601 461,239 53,363 10%

Net Operating Income/(Loss) $ 101,504 $ 79,856 $ 105,294 $ 25,438 32%

Annual Budget $1,200,000 Revenues Expenses YTD Budget YTD Actual

$1,000,000

$800,000

$600,000

$400,000

$200,000

$- Recycled Water Sales & Meter Charges Source of Supply Transmission & Customer Accounts Services Distribution

4 Budget YTD Actual YTD Water Sales Year-to-Date (AF) * Water Sales are 8% over budget YTD

45,000 40,000 35,000 30,000 25,000 20,000 Acre Feet Acre 15,000 10,000 5,000 - July August September October November* December January February March April May June

Budget YTD Actual YTD * Imported Water Production is 35% over budget YTD Imported Water Year-to-Date (AF) * Includes Dry Year Yield Production

30,000

25,000

20,000

15,000

Acre Feet Acre 10,000

5,000

- July August September October November* December January February March April May June

Budget YTD Actual YTD Ground Water Year-to-Date (AF) * Ground Water Production is 50% under budget YTD

18,000 16,000 14,000 12,000 10,000 8,000 Acre Feet Acre 6,000 4,000 2,000 - July August September October November* December January February March April May June

Budget YTD Actual YTD Recycled Water Year-to-Date (AF) * Recycled Water production is 2% under budget YTD

1,400

1,200

1,000

800

600 Acre Feet Acre 400

200

- July August September October November* December January February March April May June

5 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 12/03/2020 11611 BRINK'S, INC. ARMORED COURIER SERVICE 529.44 11612 CLIFTON, AMY 11/25-WAGE GARNISHMENT 310.50 11613 CVWD 11/25-FLEXIBLE SPENDING 1,793.95 11614 DAVIS FARR LLP AUDIT SERVICES 12,753.00 11615 FRASCO PROFILES RECRUITMENT 134.00 11616 HAAKER EQUIPMENT CO FLEET SUPPLIES 327.80 11617 MAESTAS, MIKE D5 RENEWAL 105.00 11618 NATIONAL CONSTRUCTION RENTALS PRODUCTION SUPPLIES 554.00 11619 PATTEN SYSTEMS INC PRODUCTION SUPPLIES 4,689.80 11620 PFM ASSET MANAGMENT LLC ARBITRAGE REPORT 2018A BONDS 3,000.00 11621 R&D PEST SERVICES, INC. PEST CONTROL 340.00 11622 RAFTELIS FINANCIAL CONSULTANTS, INC WATER RATE STUDY 7,378.75 11623 S&J SUPPLY CO INC RESTOCK INVENTORY 111,645.85 11624 SHARP BUSINESS SYSTEMS COPIERS ANNUAL MAINTENANCE 726.90 11625 STERLING WATER TECHNOLOGIES LLC LWMWTP ANIONIC POLYMER 4,352.20 11626 SUPERION, LLC ERP UTILITY SOFTWARE ANNUAL MAINTENANCE 94,992.31 11627 UNDERGROUND SERVICE ALERT WATER SERIVCE 564.40 11627 UNDERGROUND SERVICE ALERT WATER SERVICE 332.78 11628 WEST COAST ADVISORS STATE ADVOCACY SERVICES 3,000.00 11629 WSP USA INC. WELL 48 EQUIPPING SERVICES 276.00 134813 AEROTEK, INC. ENGINEERING TEMP-MARTINEZ 2,787.69 134814 BURRTEC WASTE INDUSTRIES INC TRASH SERVICE 401.66 134815 CALAFCO ANNUAL DUES 300.00 134816 CALIFORNIA STATE DISBURSEMENT UNIT 11/25-WAGE GARNISHEMNT 57.23 134817 CALPERS LONG-TERM CARE PROGRAM 11/25-LONG TERM CARE 258.74 134818 CEMEX CONSTRUCTION CLASS 2 AGGREGATE BASE 376.24 134819 CHARLES SCHWAB & CO., INC 11/25-401(a)CONTRIBUTION 4,556.09 134820 CHARTER COMMUNICATION INTERNET SERVICE 2,499.00 134822 CITRUS MOTORS CREDIT MEMO (263.92) 134822 CITRUS MOTORS FLEET SERVICE 500.99 134822 CITRUS MOTORS FLEET SUPPLIES 540.75 134823 CRAFCO INC. TEMPORARY ASPHALT COLD MIX 2,745.00 134824 FONTANA UNION WATER COMPANY CBWM ASSESSEMENT 201,020.65 134825 FRONTIER COMMUNICATIONS 484-3675 11/13-12/12 135.69 134825 FRONTIER COMMUNICATIONS 899-0305 11/13-12-12 84.13 134825 FRONTIER COMMUNICATIONS 899-1915 11/13-12/12 194.58 134825 FRONTIER COMMUNICATIONS 945-1535 11/13-12/12 133.00 134825 FRONTIER COMMUNICATIONS 989-6476 11/16-12/15 53.81 134825 FRONTIER COMMUNICATIONS 989-9496 11/16-12/15 87.15 134826 HARRINGTON INDUSTRIAL PLASTICS PVC INVENTORY SUPPLIES 2,916.43 134827 HOSTED BDR LLC SERVER BACKUP SOLUTION & CLOUD STORAGE 2,720.00

1 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 134828 ICMA RETIREMENT TRUST 11/25-DEFERRED COMP 5,150.00 134829 LINCOLN NATIONAL LIFE INS CO 11/25-DEFERRED COMP 7,430.00 134830 MALLORY SAFETY & SUPPLY LLC RISK SERVICE 1,032.80 134831 MIJAC ALARM COMPANY BURGLAR & FIRE ALARM MONITORING 564.00 134832 MISCELLANEOUS ONE TIME VENDOR CLAIM PAYMENT-C191004 3,500.00 134833 NATIONWIDE RETIREMENT SOLUTIONS 11/25-DEFERRED COMP 7,391.48 134834 PRINTING RESOURCES OF SO. CALIF. ENGINEERING SUPPLIES 326.63 134835 QUINN COMPANY FLEET SUPPLIES 779.02 134836 SAN ANTONIO WATER COMPANY STANDBY SERVICE 64.00 134837 SOUTHERN CALIFORNIA EDISON ELECTRICITY 104.40 134838 SOUTHERN CALIFORNIA GAS GAS 909.75 134839 SPARLING INSTRUMENT CO INC PRODUCTION SERVICE 744.08 134840 UNIFIRST UNIFORM SERVCE 526.89 134841 UNIVAR SOLUTIONS USA INC. WELL HEAD TREATMENT OCT.-DEC. 12,440.49 134842 US BANK EQUIPMENT FINANCE LEASE PAYMENT FOR SHARP MFP CO 1,477.05 134843 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300027-37238 16.54 134844 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 119861-67048 5,796.70 134845 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 297251-14126 24.65 134846 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 289649-71186 109.18 134847 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 299433-66280 308.34 134848 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 292919-32824 99.17 134849 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 286929-68288 104.17 134850 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 243035-68724 83.98 134851 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300385-82738 54.65 134852 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 287829-90350 86.53 134853 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 295133-96886 53.67 134854 VERIZON TREATMENT PLANT LONG DISTANCE 48.74 134855 VERIZON CONNECT NWF, INC FLEET VEHICLE TRACKING SYSTEM 3,218.90 134856 WAGE WORKS BENEFITS FOR NOVEMBER 2020 209.38 12/04/2020 134857 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 261125-95084 8,584.42 12/10/2020 11630 BEE REMOVERS FACILITIES SERVICE 130.00 11631 BEST COURIER LLC MAIL SERVICE 356.31 11632 BONGARDE HOLDINGS INC MEMBERSHIP RENEWAL 297.00 11633 BRENNTAG PACIFIC, INC 3A NTF SODIUM HYPOCHLORITE FOR CIP 1,109.19 11634 CONTROL AIR CONDITIONING SERVICE CORP FACILITIES SERVICE 567.00 11635 FERGUSON WATERWORKS #1083 RESTOCK INVENTORY 2,168.67 11636 GRAINGER FACILITIES SUPPLIES 32.49 11637 HAAKER EQUIPMENT CO FLEET SERVICE 911.71 11637 HAAKER EQUIPMENT CO FLEET SUPPLIES 571.22 11638 INFOSEND INC. UTILITY BILL PRESENTMENT SERVICE 27,318.98 11639 INLAND EMPIRE UTILITIES AGENCY SUPPLEMENTAL CAPITAL CALL 833,255.00

2 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 11640 INLAND EMPIRE UTILITIES AGENCY DYY CREDIT (935,000.00) 11640 INLAND EMPIRE UTILITIES AGENCY DYY WATER 1,887,500.00 11640 INLAND EMPIRE UTILITIES AGENCY RECYCLED WATER 60,843.30 11640 INLAND EMPIRE UTILITIES AGENCY IMPORTED WATER 1,015,209.48 11641 JO ANN SIMMONS EMPLOYEE ASSISTANCE PROGRAM 910.00 11642 KONE, INC FACILITIES SERVICE 1,463.31 11643 LAWNSCAPE SYSTEMS, INC. GROUNDS MAINTENANCE - SCHEDULE 17,460.00 11644 LOU'S TIRE SERVICE FLEET SERVICE 1,382.09 11645 MENDEZ, ELISABETH EMPLOYEE RELATIONS 10.00 11646 NORSTAR PLUMBING & ENGINEERING, INC EMERGENCY SEWER MAIN REPAIR 59 26,806.02 11647 ONLINE INFORMATION SERVICES, INC ON LINE CREDIT CHECK 841.60 11648 PFM ASSET MANAGMENT LLC INVESTMENT ADVISORY SERVICES 3,777.65 11649 R&D PEST SERVICES, INC. PEST CONTROL 445.00 11650 RAFTELIS FINANCIAL CONSULTANTS, INC COMMUNICATIONS & OUTREACH 960.00 11651 SCOTT, DAVID REIMB-D2 CERTIFICATE RENEWAL 80.00 11652 WAXIE SANITARY SUPPLY FACILITIES SUPPLIES 542.13 11653 WECK LABORATORIES, INC. LABORATORY ANALYTICAL SERVICES 10,391.50 11654 WESTRUX INTERNATIONAL INC FLEET SUPPLIES 2,281.35 134858 AEROTEK, INC. ENGINEERING TEMP-MARTINEZ 972.45 134859 AW ASSOCIATES, INC. FLEET SERVICES 90.00 134860 BURRTEC WASTE INDUSTRIES INC TRASH SERVICE 1,204.98 134861 CEMEX CONSTRUCTION CLASS 2 AGGREGATE BASE 3,206.15 134862 CITRUS MOTORS FLEET SUPPLIES 199.47 134863 CITY OF FONTANA UTILITY EXCAVATION 249.00 134864 CITY RENTALS 3A NTF EQUIPMENT RENTAL 197.50 134864 CITY RENTALS TREATMENT SERVICE 672.45 134865 D&H WATER SYSTEMS, INC. NTF CHEMICAL FEED SUPPLY 205.75 134866 DIRECT TV LMW SERVICE 131.99 134867 EMAINT ENTERPRISES LLC TREATMENT CMMS ANNUAL SUPPORT CONTRACT 4,500.00 134868 FRONTIER COMMUNICATIONS 476-7489 11/25-12/24 1,349.70 134868 FRONTIER COMMUNICATIONS 803-2949 11/25-12/24 167.93 134869 GENUINE PARTS COMPANY FLEET SUPPLIES 1,242.41 134870 HARPER & ASSOC. ENGINEERING, INC CATHODIC PROTECTION SYSTEM 4,500.00 134871 MERIT OIL COMPANY RESTOCK INVENTORY 19,811.85 134872 NTT DATA SERVICES CLOUD DATA BACKUP AND DISASTER 1,899.80 134873 PITNEY BOWES GLOBAL FINANCIAL SERVICES LLC MAINTENANCE LEASE 678.89 134874 PRAXAIR DISTRIBUTION INC. FLEET SUPPLIES 811.74 134875 QUINN COMPANY FLEET SUPPLIES 266.82 134876 REF INDUSTRIES, INC SEWER SUPPLIES 581.85 134877 SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT 3A NTF CUPA PERMIT 673.00 134878 SHRED-IT USA DOCUMENT SHREDDING SERVICE 451.44

3 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 134879 SMITH CHEVROLET, M K FLEET SUPPLIES 279.20 134880 SOUTHERN CALIFORNIA EDISON ELECTRICITY 40,021.55 134881 SOUTHLAND PIPE CORP RESTOCK INVENTORY 3,690.44 134882 TIREHUB, LLC FLEET SUPPLIES 1,906.58 134883 UNIFIRST UNIFORM SERVCE 565.69 134884 UNIVAR SOLUTIONS USA INC. SODIUM HYDROXIDE 50% 2020 Q4 @ 4,866.81 134885 US BANK CORPORATE PAYMENT SYSTEM PCARD PREPAYMENT 51,409.08 134886 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 293163-35490 257.60 134887 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 291277-4656 252.28 134888 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 18719-14622 356.11 134889 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 293687-53752 104.07 134890 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 280587-71494 55.63 134891 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 188299-46896 761.62 134892 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 246633-72004 578.60 134893 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300587-80154 449.87 134894 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 298567-60710 492.84 134895 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 299533-40250 242.51 134896 VERIZON WIRELESS-LA WIRELESS PHONE 10,644.38 12/17/2020 11655 ARCHITERRA DESIGN GROUP LANDSCAPE ARCHITECTURAL SERVICE 2,211.00 11656 AUTOMATED GATE SERVICES FACILITIES SUPPLIES 158.00 11657 BADGER METER, INC. METER MEASURING ELEMENT 3,172.31 11658 BUTLER ENGINEERING FIRETIDE ASSESSMENT AND TRAINING 3,015.00 11659 CAMPOS, GEORGE MEDICARE REIMBURSEMENT 364.80 11660 CCS DISASTER RECOVERY SERV.,LLC DISASTER RECOVERY SERVICE 900.00 11661 CDW GOVERNMENTAL, INC. IT SUPPLIES 266.78 11661 CDW GOVERNMENTAL, INC. WIRELESS HEADSETS 815.38 11662 CLIFTON, AMY 12/10-WAGE GARNISHMENT 310.50 11663 CUNNINGHAM, GERALD MEDICARE REIMBURSEMENT 421.80 11664 CUNNINGHAM, MARTHA MEDICARE REIMBURSEMENT` 433.80 11665 CVWD 12/10-FLEXIBLE SPENDING 1,793.95 11666 DAISYECO INC DESKTOP MONITOR REPLACEMENTS 1,986.57 11666 DAISYECO INC MONITOR REPLACEMENTS FOR ENG 719.00 11666 DAISYECO INC PRINTER CARTRIDGE 86.11 11667 DE LOACH, ROBERT MEDICARE REIMBURSEMENT 532.70 11668 DUDE SOULUTIONS, INC IN CASE OF CRISIS APP 5,894.10 11669 FERGUSON WATERWORKS #1083 RESTOCK INVENTORY 28,246.62 11670 FIEN, BETTY MEDICARE REIMBURSEMENT 602.60 11671 FOOTE, JAYMIE MEDICARE REIMBURSEMENT 385.80 11672 GENERAL PUMP WELL 48 PUMPING EQUIPMENT 38,514.00 11673 GRAINGER FACILITIES SUPPLIES 35.52 11674 GUERIN, JEFFREY DEAN T2 RENEWAL 60.00

4 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 11675 HAUSER, JAMES MEDICARE REIMBURSEMENT 433.80 11676 INTEGRATED TECHNOLOGY PHONE SYSTEM MAINTENANCE 2,449.20 11677 INTERLICCHIA, DENNIS MEDICARE REIMBURSEMENT 144.60 11678 IRON MOUNTAIN OFFSITE DATA STORAGE 318.57 11679 JACK HENRY & ASSOCIATES, INC SPOOLVIEW ANNUAL MAINTENANCE 4,960.00 11680 LILBURN CORPORATION PRE-CONSTRUCTION BIOLOGICAL MONITORING 367.50 11681 MERRICK, LINDA SUE MEDICARE REIMBURSEMENT 403.80 11682 MERRICK, WILLIAM MEDICARE REIMBURSEMENT 433.80 11683 PASTOR, DAVID D MEDICARE REIMBURSEMENT 404.80 11684 PASTOR, DIANE MEDICARE REIMBURSEMENT 214.60 11685 PEREZ, CESAR MEDICARE REIMBURSEMENT 433.80 11686 PFM ASSET MANAGMENT LLC INVESTMENT ADVISORY SERVICES 3,902.75 11687 PRUDEN, ERNIE MEDICARE REIMBURSEMENT 433.80 11688 PRUDEN, NANCY MEDICARE REIMBURSEMENT 144.60 11689 R&D PEST SERVICES, INC. PEST CONTROL 340.00 11690 RAFTELIS FINANCIAL CONSULTANTS, INC COMMUNICATIONS & OUTREACH 330.00 11691 RODRIGUEZ, ARMANDO MEDICARE REIMBURSEMENT 415.80 11692 RODRIGUEZ, GEORGE MEDICARE REIMBURSEMENT 289.20 11693 SHARP BUSINESS SYSTEMS COPIERS MAINTENANCE 892.18 11694 SOTELO, LYNN MEDICARE REIMBURSEMENT 433.80 11695 SPITERI, INGRID MEDICARE REIMBURSEMENT 532.70 11696 TAZZA, BONNIE MEDICARE REIMBURSEMENT 421.80 11697 TAZZA, PHILLIP MEDICARE REIMBURSEMENT 433.80 11698 TYLER TECHNOLOGIES, INC. MUNIS SYSTEM MANAGEMENT 18,282.11 11699 V & A CONSULTING ENGINEERS, INC. COLLECTION SYSTEM DATA ANALYSIS 3,650.00 11700 VANGUARD CLEANING SYSTEMS JANITORIAL SERVICES ADMIN OPS 7,400.00 11701 WAXIE SANITARY SUPPLY FACILITIES SUPPLIES 680.01 11702 WEST COAST ADVISORS STATE ADVOCACY SERVICES 127.10 134897 AEROTEK, INC. ENGINEERING TEMP-MARTINEZ 1,426.26 134898 BRAY, KENNETH D. MEDICARE REIMBURSEMENT 433.80 134899 CALIFORNIA STATE DISBURSEMENT UNIT 12/10-WAGE GARNISHMENT 57.23 134900 CALPERS LONG-TERM CARE PROGRAM 12/10-LONG-TERM CARE 258.74 134901 CEMEX CONSTRUCTION CLASS 2 AGGREGATE BASE 792.10 134902 CHARLES SCHWAB & CO., INC 12/10-401(a)CONTRIBUTION 2,925.24 134903 CHARTER COMMUNICATION SPECTRUM INTERNET SERVICE 2,499.00 134904 CHINO BASIN WATERMASTER CBWM ASSESSMENT 690,538.68 134905 CITY OF RANCHO CUCAMONGA PAVING SERVICES 42,461.44 134906 CITY OF RANCHO CUCAMONGA PAVING SERVICES 62,547.52 134907 CLINE, JAMES MEDICARE REIMBURSEMENT 361.80 134908 CLINE, LORITA MEDICARE REIMBURSEMENT 343.80 134909 CLS LANDSCAPE MANAGEMENT, INC GROUNDS MAINTENANCE SCHEDULE B 5,974.00

5 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 134910 FEDERAL EXPRESS CORP SHIPMENT 47.38 134911 FRANCHISE TAX BOARD 12/10-WAGE GARNISHMENT 970.42 134912 FRONTIER COMMUNICATIONS 899-0060 11/28-12/27 119.04 134912 FRONTIER COMMUNICATIONS 909-197-1871-112320-5 11/27-12/26 1,348.67 134912 FRONTIER COMMUNICATIONS 944-1634 11/21-12/20 123.38 134912 FRONTIER COMMUNICATIONS 948-5180 11/28-12/27 176.55 134913 FULLER, RICHARD MEDICARE REIMBURSEMENT 396.60 134914 GARCIA, ALBERT MEDICARE REIMBURSEMENT 418.80 134915 GUIDERA, BOBBIE MEDICARE REIMBURSEMENT 412.80 134916 GUIDERA, JOSEPH MEDICARE REIMBURSEMENT 397.80 134917 HAGUE, BARBARA MEDICARE REIMBURSEMENT 391.80 134918 HAGUE, CLYDE H. MEDICARE REIMBURSEMENT 433.80 134919 HARRINGTON INDUSTRIAL PLASTICS AHBWTP CPVC SUPPLIES 16.82 134920 HOSE MAN FLEET SUPPLIES 264.75 134921 HUB CONSTRUCTION SPECIALISTS WATER SUPPLIES 185.61 134922 ICMA RETIREMENT TRUST 12/10-DEFERRED COMP 5,150.00 134923 INLAND KENWORTH (US) INC. SEWER FLEET SERVICE 309.09 134924 JACOBS, ROBERT MEDICARE REIMBURSEMENT 433.80 134925 KERRIGAN, CATHERINE MEDICARE REIMBURSEMENT 214.60 134926 KERRIGAN, PATRICK MEDICARE REIMBURSEMENT 214.60 134927 KURTH, RITA A. MEDICARE REIMBURSEMENT 427.80 134928 LINCOLN NATIONAL LIFE INS CO 12/10-DEFERRED COMP 5,805.00 134929 LUNA, GINA MEDICARE REIMBURSEMENT 433.80 134930 LUNA, RICHARD MEDICARE REIMBURSEMENT 415.80 134931 NATIONWIDE RETIREMENT SOLUTIONS 12/10-DEFERRED COMP 8,425.19 134932 PRINTING RESOURCES OF SO. CALIF. ENGINEERING SUPPLIES 53.81 134933 QUINN COMPANY PRODUCTION SUPPLIES 169.76 134934 RODRIGUEZ, SUSAN MEDICARE REIMBURSEMENT 433.80 134935 RSH CONSTRUCTION SERVICES CONSTRUCT NEW RESERVOIR 3A 132,240.00 134936 RSH CONSTRUCTION SERVICES CONSTRUCT NEW RESERVOIR 3A-RETENTION 6,960.00 134937 SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT PRODUCTION SERVICES 1,680.00 134938 SAN JUAN WATER DISTRICT SPONSORSHIP 3,593.43 134939 SOUTH COAST AQMD PRODUCTION SERVICE 2,241.50 134940 SOUTHERN CALIFORNIA EDISON ELECTRICITY 745,940.12 134941 STETSON ENGINEERS IN MULTIAGENCY 2020 UWMP 11,234.25 134942 STONE ROOFING CO., INC. CBWM BLDG ROOF REPLACEMENT 93,992.05 134943 SWRCB - ACCOUNTING OFFICE ANNUAL PERMIT FEE 18,080.00 134944 SWRCB - DRINKING WATER OPERATIONS CERT PROG D4 RENEWAL 105.00 134945 TPX COMMUNICATIONS CO. DISTRICT MAIN PHONE LINES 1,351.69 134946 TRUNNELL, JAY MEDICARE REIMBURSEMENT 214.60 134947 UNIFIRST UNIFORM SERVCE 527.39

6 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 134948 UNIVAR SOLUTIONS USA INC. SODIUM HYDROXIDE 50% 2020 Q4 4,859.40 134948 UNIVAR SOLUTIONS USA INC. WELL HEAD TREATMENT OCT.-DEC. 736.60 134949 USA BLUEBOOK CREDIT MEMO (104.30) 134949 USA BLUEBOOK NTF SITE HACH DR3900 SAMPLING UNIT 3,443.74 134950 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 179883-104128 100.98 134951 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 277131-83452 44.60 134952 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 253685-58598 296.15 134953 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 282921-69512 108.85 134954 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 269199-73594 62.73 134955 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 297919-10008 12.77 134956 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 295759-58696 746.15 134957 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 295759-58698 26.99 134958 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 295759-58700 1,123.20 134959 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 287325-46354 80.72 134960 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 276907-83126 102.06 134961 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 207737-81722 525.56 134962 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 242655-46050 34.90 134963 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 36213-84074 2,396.65 134964 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 217973-7844 107.33 134965 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 299921-66324 82.42 134966 WALKER, MARY LOU MEDICARE REIMBURSEMENT 427.80 134967 WILSON, JEROME MEDICARE REIMBURSEMENT 433.80 134968 WILSON, LINDA MEDICARE REIMBURSEMENT 433.80 134969 ZIELKE, BELINDA MEDICARE REIMBURSEMENT 433.80 134970 ZIELKE, DENNIS MEDICARE REIMBURSEMENT 433.80 12/22/2020 11703 ANSWER UNITED, INC. AFTER HOURS ANSWERING SERVICE 1,262.15 11704 ARCHITERRA DESIGN GROUP LANDSCAPE ARCHITECTURAL SERVICE 4,235.00 11705 BEST BEST & KRIEGER LEGAL SERVICES-VARIOUS DEPARTMENT 27,293.21 11706 BRINK'S, INC. ARMORED COURIER SERVICE 496.41 11707 CAROLLO ENGINEERS, INC HYDRAULIC MODEL TRAINING AND MODULE 1,344.00 11708 HAAKER EQUIPMENT CO FLEET SERVICE 1,060.66 11709 INTEGRATED TECHNOLOGY CONFERENCE ROOM PHONE REPLACEMENTS 2,074.02 11710 JO ANN SIMMONS EMPLOYEE ASSISTANCE PROGRAM & CONSULTING 15,783.21 11711 KALARSARINIS, ROBERT TUITION REIMBURSEMENT 705.00 11712 SMITH, STEVEN R. EASEMENT APPRAISAL AT 9575 HID 2,950.00 11713 VELOCITY TRUCK-CENTERS FLEET SUPPLIES 460.68 11714 WESTRUX INTERNATIONAL INC FLEET SUPPLIES 182.10 134971 CEMEX CONSTRUCTION CLASS 2 AGGREGATE BASE 2,667.86 134972 CITY OF ONTARIO PLAN CHECK FEE-CP20006 158.52 134973 CORE & MAIN LP RESTOCK INVENTORY 5,062.74 134974 CP CONSTRUCTION CO. INC. REPLACE EXISTING WATER SERVICE 11,400.00

7 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 134975 FRONTIER COMMUNICATIONS 476-8312 12/04-01/03 63.25 134975 FRONTIER COMMUNICATIONS 803-5612 12/04-01/03 109.82 134975 FRONTIER COMMUNICATIONS 899-6273 12/07-01/06 82.63 134976 GENUINE PARTS COMPANY FLEET SUPPLIES 798.97 134976 GENUINE PARTS COMPANY FLEET SUPPLIES 59.34 134977 HOSE MAN FLEET SUPPLIES 511.24 134978 MILES CHEMICAL COMPANY INC 3A NTF CHEMICALS Q4 5,530.31 134979 SC FUELS DIESEL FUEL 2,988.45 134980 SOUTHERN CALIFORNIA GAS GAS 707.52 134981 STETSON ENGINEERS IN MULTIAGENCY 2020 UWMP 13,225.25 134982 STONE ROOFING CO., INC. RETENTION 4,946.95 134983 UNIFIRST UNIFORM SERVCE 711.09 134984 UNIVAR SOLUTIONS USA INC. SODIUM HYDROXIDE 50% 2020 Q4 @ 5,164.26 134984 UNIVAR SOLUTIONS USA INC. WELL HEAD TREATMENT OCT.-DEC. 3,498.85 134985 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 289471-38632 124.23 134986 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300423-78422 1,978.75 134987 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300265-14582 248.65 134988 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 280933-98134 116.43 134989 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 301051-11290 350.00 134990 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 262787-74964 27.42 134991 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 250867-99812 134.78 134992 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 278363-3336 72.97 134993 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300853-8246 317.53 134994 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 251439-23768 86.32 134995 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 298117-32188 265.00 134996 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 298117-32190 305.66 134997 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 291001-22746 97.76 134998 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 292883-23302 100.02 134999 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 234383-61640 134.59 135000 VERIZON CONFERENCE CALLS 204.55 135000 VERIZON INTERNET - BRIDGE PLANT 1,885.71 135000 VERIZON INTERNET - DISTRICT TO CLOUD 1,900.01 135000 VERIZON INTERNET - LMW 2,401.21 135000 VERIZON INTERNET - NITRATE PLANT 2,000.28 135000 VERIZON TREATMENT PLANT LONG DISTANCE 48.74 12/30/2020 11715 ACWA JOINT POWERS INSURANCE - EMPLOYEE BENEFITS INSURANCE BENEFITS 212,728.73 11716 ACWA JOINT POWERS INSURANCE - EMPLOYEE BENEFITS WORKERS' COMPENSATION PROGRAM 29,862.69 11717 CALIFORNIA WATER TECHNOLOGIES FERRIC CHLORIDE 2020 Q4 @ $615 22,804.00 11718 CLIFTON, AMY 12/24-WAGE GARNISHMENT 310.50 11719 COMPRESSOR AIR SPECIALTIES FLEET SUPPLIES 890.47 11720 CONTROL AIR CONDITIONING SERVICE CORP FACILITIES SERVICE 790.00

8 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING DECEMBER 31, 2020

Date Check Number Vendor Name Invoice Description Total 11721 CVWD 12/24-FLEXIBLE SPENDING 1,793.83 11722 INLAND EMPIRE UTILITIES AGENCY 224.358 AF CHINO BASIN RECHARGE 123,396.90 11723 INLAND EMPIRE UTILITIES AGENCY 941.545 AF CHINO BASIN RECHARGE 517,849.75 11724 LAWNSCAPE SYSTEMS, INC. GROUNDS MAINTENANCE - SCHEDULE 11,370.00 11725 MET LIFE DENTAL, LIFE, & LONG TERM DISABILITY 27,258.45 11726 SUPERION, LLC ERP SOFTWARE 1,000.00 11727 TERRYBERRY 2020 SERVICE AWARDS 459.40 11728 VISION SERVICE PLAN - CA VISION CARE 10.56 11729 VISION SERVICE PLAN - CA VISION CARE 1,784.87 11730 WIRELESS DEVELOPEMENT PARTNERS CONSULTING SERVICES, LEASE FEE 2,084.96 11731 WSP USA INC. STRUCTURAL CALCS FOR WATERLINE 674.40 135001 AEROTEK, INC. ENGINEERING TEMP-MARTINEZ 1,296.60 135002 ASBURY ENVIRONMENTAL SERVICES FLEET SERVICE 160.00 135003 CALIFORNIA STATE DISBURSEMENT UNIT 12/24-WAGE GARNISHMENT 57.23 135004 CALPERS LONG-TERM CARE PROGRAM 12/24-LONG TERM CARE 258.74 135005 CHARLES SCHWAB & CO., INC 12/24-401(a)CONTRIBUTION 1,705.00 135006 FIELDMAN, ROLAPP & ASSOCIATES BOND RATING AGENCY MEETING 626.00 135007 FRANCHISE TAX BOARD 12/24-WAGE GARNISHMENT 692.45 135008 ICMA RETIREMENT TRUST 12/24-DEFERRED COMP 4,750.00 135009 LINCOLN NATIONAL LIFE INS CO 12/24-DEFERRED COMP 5,765.00 135010 NATIONWIDE RETIREMENT SOLUTIONS 12/24-DEFERRED COMP 8,450.02 135011 SOUTHERN CALIFORNIA EDISON ELECTRICITY 7,490.12 135012 SOUTHERN CALIFORNIA GAS GAS 1,619.06 135013 TPX COMMUNICATIONS CO. MAIN PHONE LINE 911.14 135014 UNIFIRST UNIFORM SERVCE 526.23 135015 UNIVAR SOLUTIONS USA INC. SODIUM HYPOCHLORITE 12.5% 2020 10,780.25 Grand Total $ 6,797,385.55

9 of 9 JANUARY 2021

GOVERNMENT & PUBLIC AFFAIRS REPORT GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 1 SAVE THE DATE! Date Activity Location Description January - March Virtual Field Trip Online via Zoom Virtual field trip opportunities are available 2021 Opportunities for K-8th grade students. A variety of fun, interactive activities will be conducted from the Environmental Learning Center and presented via Zoom. January - March Water Savvy Landscape - CVWD is pleased to announce that the 31, 2021 Contest Water Savvy Landscape Contest is now open to customers. This program promotes outdoor water efficiency by recognizing customers whose landscapes are both beautiful and water smart. January 28, 2021 Pruning & Maintenance Zoom Online This online workshop will focus on the basics Online Workshop Landscape Workshop of pruning and maintenance for the winter season. The workshop will also include tips for fruit trees, roses and other plants. February 11, 2021 Rainwater Harvesting for Zoom Online This online workshop will educate Home Landscapes Online Landscape Workshop customers how to make the most of the Workshop winter season by demonstrating practical, low-cost approaches to capturing rain water at home. March 4, 2021 DIY Raised Bed Zoom Online This online workshop will educate Construction and Landscape Workshop customers how to build raised vegetable Vegetable Gardening beds and offer tips on how to care for Online Workshop vegetables in the spring. March 18, 2021 DIY Find & Fix Leaks Online via Zoom This online workshop will be hosted during Online Workshop Fix-A-Leak Week and will teach customers how to prevent and fix leaks in the home. EVENT HIGHLIGHTS Date Activity Number of Comments Attendees December 2020 Rancho Cucamonga - CVWD is a proud sponsor of the #ShopRC campaign that Chamber of Commerce encourages the community to shop local and boost the #ShopRC Campaign local economy. CVWD’s short video featuring Director Cetina was highlighted on the Rancho Cucamonga Chamber of Commerce social media platforms in December. January 2021 Virtual Field Trips 58 Field trips resumed in January with 3 classes learning about the water cycle, composting, and recycling. GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 2 SOCIAL MEDIA OVERVIEW Summary from 12/1/20 - 1/1/2021 NUMBER POST POST NUMBER OF OF POSTS ENGAGEMENTS IMPRESSIONS FOLLOWERS Facebook 16 124 1,976 1 , 311 Twitter 16 97 5, 474 1,252 Instagram 22 634 2,719 1,078 NextDoor 8 167 19,248 41,309 Subscribers

Engagements: The number of times people have engaged with posts through likes, comments, shares and more. Impressions: The number of times users have seen our posts. Fifth Grade Poster Contest and Water is Life Student Art Celebration CVWD is hosting the 2021 Fifth Grade Poster Contest. All schools within our service area have already received poster paper and the contest guidelines to encourage 5th graders to participate. A virtual celebration is planned for the spring. In addition, GPA staff and Board Members participated in MWD’s Water is Life Student Art Virtual Celebration on Thursday, December 17. Saima Bhuiyan from Ruth Musser Middle School was recognized for her wonderful artwork that depicts the importance and value of water (pictured to the right).

Facebook.com/CVWDwater Instagram: @CVWDwater Twitter: @CVWDwater GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 3 SOCIAL MEDIA: TOP PERFORMING POSTS GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 4

CUSTOMER REBATES & PROGRAMS

PROGRAM KEY • LEAP Audits – The Landscape Evaluation & Audit Program (LEAP) is offered through the Chino Basin Water Conservation District to help residents/businesses with large landscapes reduce water use through a landscape assessment and recommendations for improvements on their irrigation systems. • MWD Turf Replacement Rebate – Customers are eligible for a $3 per square foot rebate to retrofit their grass with low-water use materials. • Pressure Regulator Valve (PRV) Retrofit – Customers exchange their older, inefficient PRV for a new working model, including installation by a professional contractor. • Large Site Program – Customers whose properties are more than a 1/4 acre can receive an outdoor water use evaluation, installation of a weather based irrigation controller, and high efficiency sprinkler nozzles. • Small Site Program – Customers whose properties are less than 1/4 acre can receive an outdoor water use evaluation and installation of a weather based irrigation controller. • Indoor & Outdoor Rebates – This category includes rebates issued to residential and commercial customers for items such as: water efficient toilets, clothes washers, high efficiency sprinkler nozzles, weather based irrigation controllers, soil moisture sensors systems, rain barrels, and cisterns. GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 5

GOVERNMENT AFFAIRS ACTIVITY POLICY & REGULATORY • 12/22 – Letters submitted to the California Department of Health and San Bernardino County Health Department requesting that front line water & wastewater staff receive priority in Phase 1-B of COVID-19 Vaccinations. • 12/30 – Congratulatory letters mailed to elected officials on their election/re-election from the Board of Directors.

OUTREACH • 12/8 – 12/10 – California Water Efficiency Partnership: Peer to Peer Reimagined • 12/9 – IEUA Community & Leg Affairs Committee Meeting • 12/10 – South Coast Air Quality Management District, Meeting #1on generator use during emergencies • 12/10 – California Water Commission Southern California Workshop • 12/16 – ACWA Federal Affairs Committee • 12/16 – Public Stakeholder Workshop to Overview Proposed Water Loss Standards and Regulatory Framework • 1/7 – SAWPA Legislative Conference Call • 1/8 – SCWC Legislative Task Force Meeting • 1/13 – IEUA Community & Leg Affairs Committee Meeting GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 6

Late December Storms Not Enough to Offset California’s Dry Fall The Department of Water Resources (DWR) conducted the first Phillips Station snow survey of the season which recorded 30.5 inches of snow depth and a snow water equivalent of 10.5 inches, which is 93 percent of the January average for this location. The snow water equivalent (SWE) measures the amount of water contained in the snowpack and is a key component of DWR’s water supply forecast. Statewide the snowpack is 52% of average for this time of year.

On average, the Sierra snowpack supplies about 30 percent of California’s water needs and the snowpack is an important factor in determining how DWR manages the state’s water resources. Its natural ability to store water is why the Sierra snowpack is often referred to as California’s “frozen reservoir.” In addition to the Phillips Station snow survey, DWR collects electronic readings from 130 stations placed throughout the State. Measurements indicate that statewide, the snowpack’s SWE is 5 inches, or 52 percent of the December 30 average. DWR conducts five media oriented snow surveys at Phillips Station each winter near the first of each month, January through April and, if necessary, May.

Initial State Water Allocation Set at 10 Percent for 2021 Water Year DWR announced the initial State Water Project (SWP) allocation of 10 percent of requested supplies for the 2021 water year. The initial allocation is based on several factors such as hydrology and reservoir storage. State allocations are reviewed monthly and may change based on snowpack and runoff information. The allocations are typically finalized by May.

DWR’s eight precipitation stations in Northern California recorded a record-low zero percent of average rainfall in October and 53 percent in November. Most of the state’s major reservoirs are lower than historical average to date compared to a year ago. Lake Shasta, the federal Central Valley Project’s (CVP) largest reservoir, is at 75 percent compared to 119 percent its historical average to date in 2019. Lake Oroville, the SWP’s largest reservoir, holds 61 percent compared to 90 percent of its historical average to date in 2019. San Luis Reservoir, a joint-use facility for the SWP and CVP, now holds 76 percent compared to 72 percent of its historical average to date in 2019.

The 10 percent initial allocation amounts to 422,848 acre-feet of water, distributed among the 29 long-term SWP contractors who serve more than 27 million Californians and 750,000 acres of farmland. Last year’s initial allocation was 10 percent, with a final allocation of 20 percent set in May.

President Trump Signs Omnibus and Covid-19 Stimulus President Trump signed a $1.4 trillion, comprehensive appropriations package (omnibus) which also contained nearly $900 billion in Covid-19 stimulus. Funding levels for fiscal year 2021 at relevant departments and programs remained consistent with prior years. Notably, the Environmental Protection Agency (EPA) was allocated $1.63 billion for the Clean Water State Revolving Fund; $1.12 billion for Drinking Water State Revolving Fund; and $59.5 million for Water Infrastructure Finance and Innovation Act (WIFIA). Similarly, WaterSMART Grants were allocated $55 million; Water Infrastructure Investments for the Nation (WIIN) storage projects were allocated $134 million; and Title XVI water recycling and WIIN recycling were allocated $63.6 million, combined. Inserted into the omnibus are also several California water projects authorizations. Some of the enumerated projects include Sites Reservoir; Friant Kern Canal repair; Delta Mendota Canal repair; San Luis Reservoir infrastructure improvements; Los Vaqueros Reservoir expansion; Sacramento Regional Water Bank; and the Del Puerto Water District Project. GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 7

(Continued) President Trump Signs Omnibus and Covid-19 Stimulus The Covid-19 stimulus bill contains $638 million to help low-income families cover the costs of their drinking water and waste water utility bills. The program, to be run through the Department of Health and Human Services, will provide grants to states and tribes, who in turn will provide funds to owners or operators of public water systems or treatment works to reduce arrearages and rates to low-income households. District staff, along with the West Coast Advisors are monitoring this program and any potential funds for our customers.

Another reason the omnibus can be considered a ”win” for Western Water is due to its incorporation of the long-awaited Water Resources Development Act of 2020 (WRDA), several western water provisions, and largely static funding levels for much-needed federal programs.

Secretary of State Alex Padilla as California’s Next United States Senator Governor Gavin Newsom announced the selection of California Secretary of State Alex Padilla to be California’s next United States Senator, filling the term being vacated by Vice President-elect Kamala Harris. Padilla, who previously served as a Los Angeles City Councilman and State Senator, will become the first Latino to represent California in the United States Senate and the first Southern Californian in nearly three decades. As a State Senator, he would go on to author more than 70 bills signed into law by both Republican and Democratic governors.

Governor Newsom Releases Proposed Fiscal Year 2021-22 State Budget Governor Gavin Newsom released his proposed 2021-22 State Budget that includes a priority for funding climate resilience, including improved forest health, restoration of ecosystems, sustainable groundwater management and safe drinking water. The $227 billion budget proposal focuses on several state priorities, including funding for economic recovery, education, health care, housing and immediate COVID-19 response and relief efforts. It does not include a climate resilience bond, as the governor included with last year’s budget proposal that was shelved due to COVID-19 priorities.

Other key highlights to the Governors proposed budget: • Wildfire and Forest Resilience - $1 billion • Natural and Working Lands: Building on Executive Order N-82-20 to conserve 30% of land and coastal waters by 2030. • Restoration of Natural Areas and Ecosystems - $248.6 million • Flood Management - $183 million • Coastal Protection - $6.5 million • Natural Resources Agency: DWR • Sustainable Groundwater Management Act grants program ($60 million) • Critical levee repair projects ($75 million) • Delta Resilience ($43.7 million) • Fish and Wildlife: Modernize water conveyance systems into managed wetlands ($9.8 million) • California Environmental Protection Agency: Safe and affordable drinking water program under State Water Resources Control Board ($130 million) • Federal Cares Act Funding: The state has been finalizing the allocation for the remaining $800 million in CARES Act funds to pay for additional emergency response costs, public health expenses, and public safety payroll cost. GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 8

2021 Legislative Calendar & Deadlines

February 19, 2021 Last day for bills to be introduced

March 25, 2021 Spring Recess begins upon adjournment

April 5, 2021 Legislature reconvenes from Spring Recess

June 1- 4, 2021 Floor session only

June 4, 2021 Last day for each house to pass bills introduced in that house

June 15, 2021 Budget Bill must be passed by midnight

July 16, 2021 Summer Recess begins upon adjournment

August 16, 2021 Legislature reconvenes from Summer Recess

Aug. 30 - Sept. 10, 2021 Floor session only

September 3, 2021 Last day to amend bills on the floor

September 10, 2021 Last day for each house to pass bills

October 10, 2021 Last day for Governor to sign or veto bills passed by the Legislature before Sept. 10 and in the Governor’s possession on or after Sept. 10 GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 10

THERE IS NO LEGISLATIVE MATRIX FOR THIS MONTH. NEW MATRIX WILL BE PROVIDED NEXT MONTH AS NEW LEGISLATION IS INTRODUCED. GOVERNMENT & PUBLIC AFFAIRS REPORT: JANUARY 2021 PAGE 9

THE FOLLOWING PAGES ARE THE LEGISLATIVE REPORT FROM IEUA’S MOST RECENT BOARD MEETING FOR YOUR INFORMATION December 29, 2020

To: Inland Empire Utilties Agency

From: Michael Boccadoro Beth Olhasso Maddie Munson

RE: December Report

Overview:

Drier-than-normal conditions continue to persist throughout the state keeping reservoirs in serious need of replenishment. Carryover storage in California’s reservoirs has gotten the state through the record breaking heat this summer and could really use a strong winter snowpack to replenish supplies after a dismal winter of 2020. San Luis Reservoir, the main south-of-Delta storage facility for the State Water Project, is at 69 percent of average for this time of the year and 45 percent capacity. Oroville is at 57 percent of average and 35 percent capacity. Additionally, the entire state is now experiencing some level of drought conditions- a situation not experienced during the last several years.

The establishment of a Maximum Contaminant Level (MCL) for Chrome-6 is about to enter its fifth year at the State Water Resources Control Board. The process that was halted because of a court battle over the economic feasibility of the proposed MCL now continues with the SWRCB development of an Economic Feasibility Model that, by the Board’s own admittance, is less than thorough. Water and business stakeholders argue that if the Board moves forward with a new MCL, it could cost $4.9 billion to bring facilities into compliance. On the other side, environmentalists are urging the Board to speed up their process.

As the state moves toward 100 percent zero emission electricity by 2045, state energy agencies are shifting their focus to demand planning and how zero-carbon power generation resources will affect the grid in “all 8,760 hours of the year.” The August blackouts highlighted the deficiencies in resource adequacy and coordination at the state level. This reliability assessment might not be completed until 2025. The draft “SB 100 Report to the Legislature” by the CEC, CPUC and CARB is undergoing a major shift after the summer disaster.

Recently Governor Newsom appointed Liane Randolph to be the next chair of the California Air Resources Board (CARB) replacing longtime retiring chair Mary Nichols. Randolph, while not the expected choice, is incredibly qualified for the role.

The Legislature returned to Sacramento in early December for swearing in ceremonies and to introduce a few bills. There were only about 200 bills introduced, out of the expected several thousand, but there was an early indication that there will be significant discussions about the role of natural gas in California in 2021. SB 45, Senator Ben Allen’s Climate Resilience Bond from 2020 was reintroduced under Senator Portantino’s name and serves as a placeholder for further discussions about a Climate Resilience bond in the Senate.

When the Legislature returns in January to really start the 2021-2022 Legislative Session, business in the Capitol is expected to remain modified and limited. Both houses already pushed back their start dates by a week because of rising numbers of COVID among Capitol staff. Committee hearings will have to remain in only the larger committee rooms and public testimony will be conducted via phone, severely lengthening the process for each bill to me heard in committees.

Leadership and committee rosters have been announced in both houses. Eloise Reyes Gomez has been tapped as the Assembly Majority Leader, a prestigious position that will help elevate the Inland Empire within the Assembly. Committee rosters didn’t have a lot of surprises, however, there is a new chair of the Natural Resources Committee in Luz Rivas (D-Arleta). 2021 is looking to be an interesting year in the Capitol!

Inland Empire Utilities Agency Status Report – December 2020

Water Supply Conditions There were a few early storms in Northern California, but the late fall and early winter has been mostly dry throughout the state. A relatively dry 2020 forced the state to rely on carryover storage in major reservoirs through the record-breaking heat this summer. The state could really use a strong winter snowpack to replenish supplies after a dismal winter of 2020. San Luis Reservoir, the main south-of- Delta storage facility for the State Water Project, is at 69 percent of average for this time of the year and 45 percent capacity. Oroville is at 57 percent of average and 35 percent capacity.

Drought conditions are worsening in the state as the dry winter continues. Officially 100 percent of the state is experiencing at least abnormally dry conditions, a level California has not hit in several years.

Chrome-6 MCL Timeline & Cost Estimates Challenged at SWRCB In the next chapter of the process to establish a maximum contaminant level (MCL) for Chrome-6 (or hexavalent chromium) at the State Water Resources Control Board (SWRCB), multiple industry stakeholders and water agencies are challenging the MCL arguing that it is premature because a new health goal could soon be adopted by another agency. They also charge that the economic feasibility methodology underlying the board’s proposal is flawed. Not surprisingly, environmentalists are urging the board to accelerate the rulemaking.

As a reminder, the SWRCB started the MCL process for Chrome-6 in 2017 when the process was halted by a court order because the Department of Public Health (DPH) failed to determine whether the current MCL of 10 parts per billion (ppb) is economically feasible as required by the Safe Drinking Water Act. Since that ruling the SWRCB started a new MCL process to include an economic feasibility impact on CA business and individuals.

The model developed sought to underscore the importance of costs on public utilities to meet health- based standards.

At the same time the SWRCB is working on the MCL, the Office of Environmental Health Hazzard Assessment (OEHHA) is establishing a Public Health Goal (PHG). MCLs are enforceable cleanup standards, whereas PHGs are non-regulatory, strictly health-based standards that do not factor economic or technological feasibility into their development.

At a December 8 workshop on the MCL, representatives from ACWA, the CA Chamber of Commerce and the CA Manufacturers and Technology Association, and others, stated that the SWRCB should wait until OEHHA completes its review of the current PHG before advancing the MCL proposal.

The Chamber highlighted a SWRCB white paper released early this year noting that if the MCL was 20 ppb, 60 systems would need to install new technologies to comply. But if the MCL was lowered to 5 ppb, as environmentalists are requesting, 863 systems would need to be upgraded, totaling $4.9 billion in costs.

SWRCB officials have acknowledged that they are struggling to come up with a more accurate and expanded economic feasibility model with various cost-benefit analysis estimates.

SB 100 Report Pivots to Consider “Keeping the Lights On” As the state moves toward 100 percent zero emission electricity by 2045, state energy agencies are shifting their focus to demand planning and how zero-carbon power generation resources will affect the grid in “all 8,760 hours of the year.” The August blackouts highlighted the deficiencies in resource adequacy and coordination at the state level. This reliability assessment might not be completed until 2025. The draft “SB 100 Report to the Legislature” by the CEC, CPUC and CARB is undergoing a major shift after the summer disaster.

Peak load in California is projected to grow from about 65,000 MW in 2027 to about 87,500 MW in 2045. To hit these goals, and alleviate peak demand stress, battery and other storage capacity needs to increase from about 9,200 MW in 2027 to 28,400 in 2045. This will require “record setting resource development efforts” to achieve the necessary storage, the report notes.

The report notes that storage should include behind-the-meter equipment, meaning battery storage on the customer side of the meter.

For utility-scale solar generation, SB 100 is expected to require record-setting development. Since 2010 an average of 1 GW and a max of 2.7 GWs of utility-scale solar has been built each year- the report finds that the state will have to at the very least meet the maximum historical build rate to reach the SB 100 goals.

On the natural gas side, the report says that gas capacity is the “most economic option to provide capacity for reliability needs.” Eliminating all in-state combustion resources adds about $8 billion to annual system costs in 2045. The report also notes that with a “disproportionate amount” of combustion resources currently located in disadvantaged communities, the $8 billion per year might be less than the costs associated with the public health problems related to combustion resources. Further analysis might help determine whether the public health benefits outweigh the additional resource costs.

The report is expected to be finalized in the coming weeks and sent to the Legislature before January 1. Liane Randolph Appointed as Chair of CARB Recently Governor Newsom appointed Liane Randolph to be the next chair of the California Air Resources Board (CARB) replacing longtime retiring chair Mary Nichols. Randolph, while not the expected choice, is incredibly qualified for the role. She has been a member of the California Public Utilities Commission since 2015, was general counsel for the California Natural Resources Agency, and Chair of the CA Fair Political Practices Commission (FPPC). At the CPUC she presided over the 2020 PG&E GRC, as well as the investigation into the Aliso Canyon natural gas facility leak and closing. Randolph is seen as a fair and moderate Commissioner, without strong ties to more extreme environmental perspectives.

Gideon Kracov, of Los Angeles, has also been appointed to the Board. Kracov has been Owner of the Law Office of Gideon Kracov since 2004. He was a Deputy City Attorney in the Los Angeles City Attorney’s Office from 2002 to 2004. Kracov is a member of the South Coast Air Quality Management District.

Both appointments require Senate confirmation.

Legislative Update The Legislature returned to Sacramento in early December for an “Organizational Session” to swear in members. A few bills were introduced in the following days, with additional measures introduced in January when the legislature returns. One of the first bills introduced was a re-introduction of SB 45, the Senate’s version of a Climate Resilience Bond. The measure was sponsored by Senator Ben Allen (D-Santa Monica) in 2020, but will be championed by Senator Anthony Portantino (D-La Canada) in 2021. The measure is the exact same language as the bill last year and is just a placeholder for further conversations in 2021 and likely 2022. There were a significant number of bills introduced concerning elimination the use of natural gas in buildings, both commercial and residential.

Committee assignments were released by the leaders of both houses. Speaker Rendon also announced his new leadership team which includes Eloise Gomez Reyes (D-Rialto) as the Majority Leader in the Assembly. This is a significant role that should help elevate Inland Empire issues.

Committee Assignments: ASSEMBLY Eloise Gomez Reyes (D-Rialto): Aging & Long-Term Care Budget (Sub Committee on Education) Judiciary Labor & Employment Legislative Ethics Utilities and Energy

Chris Holden (D-Pasadena): Business & Professions Communications & Conveyance Environmental Safety & Toxic Materials Judiciary Utilities & Energy, Chair

Phillip Chen (R-Diamond Bar): Banking & Financial Institutions, Vice Chair Business & Professions Insurance Utilities & Energy

Freddie Rodriguez (D- Chino): Accountability & Administrative Review Communications & Conveyance Emergency Management, Chair Insurance

James Ramos (D-Rancho Cucamonga): Budget (Sub Comm on Housing & Human Services) Governmental Organization Health Jobs, Economic Development & the Economy Local Government Military & Veterans Affairs Rules

SENATE

Rosilicie Ochoa Bogh Banking & Financial Institutions (R- Rancho Cucamonga): Budget (Sub Committee on Education) Business, Processions & Economic Development Education Housing, Labor, Employment & Retirement Public Safety

Connie Leyva (D-Chino) Business, Professions & Economic Development Education, Chair Elections and Constitutional Amendments Health

Josh Newman (D-Yorba Linda) Budget (Sub Committee on Corrections, Public Safety, Judiciary, Labor & Transportation) Business, Professions & Economic Development Transportation Military & Veterans Affairs

Anthony Portantino (D-La Canada) Appropriations, Chair Banking & Financial Institutions Governmental Organization Insurance INNOVATIVE FEDERAL STRATEGIES, LLC Comprehensive Government Relations

MEMORANDUM

To: IEUA Community and Legislative Affairs Committee

From: Letitia White, Jean Denton, Drew Tatum, and Sarah Persichetti

Date: December 29, 2020

Re: December Monthly Legislative Update

Congress Ends Year Finalizing Appropriations / Coronavirus Relief Legislation Work on legislation to fund the government for fiscal year 2021, along with coronavirus relief legislation continued into late December after negotiators worked for over a month to find common ground on the year-end legislation. On Monday, December 21, lawmakers released text of the final omnibus legislation for consideration.

The House passed the legislation (H.R. 133) on Monday, December 21 after “dividing the question” and taking two separate votes. After getting a unanimous consent agreement, the legislation also passed the Senate on Monday, December 21. Due to the size of the legislation, lawmakers also passed a seven-day continuing resolution that extended the date of the CR through December 28, 2020.

While the week-long continuing resolution was primarily to give the House and Senate time to enroll the legislation and send it to the White House—a process that wasn’t completed until Thursday, December 24th President Trump unexpectedly bashed the COVID-19 relief package on Tuesday, December 22, saying the $600 stimulus checks it provides should be increased to $2,000 each. His opposition caught Democrats and Republicans alike by surprise since he did not voice any concerns with the bill until after it was passed by Congress. President Trump all but threatened to veto the legislation, but relented on Sunday, December 27 and signed the legislation—ending a period of uncertainty in Washington.

Following President Trump’s comments on an increase in stimulus checks, House Republicans rejected an effort by House Democrats on Thursday, December 24 to pass a bill by unanimous consent to provide $2,000 stimulus checks — up from the $600 approved in a sweeping coronavirus relief and omnibus spending package earlier in the week. House Democrats brought the legislation back up on December 28 and passed it on the suspension calendar, which required a 2/3 majority vote. The fate of the legislation is uncertain in the Senate where lawmakers may be in through the weekend processing a veto override on the National Defense Authorization Act.

The final FY21 omnibus and coronavirus relief package provides more than $900 billion in unemployment aid, direct payments, and business loans under the Covid-19 relief portion of the legislation.

511 C Street, NE • Washington, DC 20002 • 202-347-5990 • Fax 202-347-5941 Innovative Federal Strategies LLC

The measure provides funding for vaccines and testing, airline payroll support, farmers, and broadband. It extends a moratorium on evictions through January 31 and expands food aid programs. It also provides additional funds for the Paycheck Protection Program and allows businesses to obtain a second loan.

The measure omits limits on Covid-related liability and funding for state and local governments, though it would extend the expiration of funds provided under the CARES Act for state aid.

The legislation authorizes a second round of loans under the Paycheck Protection Program, which offered low-interest, forgivable loans guaranteed by the Small Business Administration for small businesses and other entities to keep workers on the payroll during the Covid-19 crisis. The measure would increase the program’s combined lending authority to $806.5 billion, from $659 billion, and extend it to March 31, 2021, from August 8, 2020. It appropriates $284.5 billion in new funds for the SBA to guarantee first and second round loans.

The measure provides $15 billion for the SBA to issue grants to live venue operators, promoters, theatrical producers, performing arts groups, movie theaters, and talent representatives, as well as nonprofit museums and similar institutions such as botanic gardens, historic homes, and zoos. It would require at least a 25% reduction in gross revenue during a quarter in 2020 compared with the previous year to qualify, along with other specified criteria.

Recipients will be able to use the funds for eligible PPP expenses, payments to independent contractors, advertising, state and local taxes and fees, production transportation, certain mortgage and debt payments, maintenance expenses, and administrative costs. They couldn’t use the grants to purchase real estate, repay loans issued after February 15, invest or re-lend funds, or donate to political parties or candidates.

Initial grants would be the lesser of 45% of an entity’s gross revenue in 2019 or $10 million. At least $2 billion in initial grant funds would be set aside for entities with 50 or fewer employees. They would be prioritized at the outset for entities with significant revenue losses. Initial grants would cover costs incurred from March 1, 2020, through December 31, 2021.

Entities with recent quarterly revenue losses of at least 30% as of April 1, 2021, could qualify for supplemental grants, which would be half the amount of initial grants. They could cover costs incurred through June 30, 2022.

Entities couldn’t receive more than $10 million in total grant funds.

Ineligible entities would include those that are publicly traded, operate venues in multiple countries or more than 10 states, employ more than 500 workers, receive more than 10% of their gross revenue from federal funding, or hold performances of a “prurient sexual nature,” with some exceptions.

The CARES Act expanded the SBA’s Economic Injury Disaster Loan (EIDL) program and authorized the agency to advance as much as $10,000 for recipients to pay sick leave to workers affected by Covid-19, retain employees, and make other covered payments.

IFS Monthly Report 2 | Page

Innovative Federal Strategies LLC

The legislation restores and reduces to $300 per week, from $600, the Federal Pandemic Unemployment Compensation (FPUC) created under the CARES Act. The extra payments, which expired on July 31, would apply to weeks of unemployment after Dec. 26 and through March 14, 2021.

The measure extends through March 14, 2021, other CARES Act unemployment benefits slated to expire on December 31, with changes that would include: • Increasing the duration of Pandemic Unemployment Assistance benefits to as long as 50 weeks, from 39 weeks, for individuals who don’t qualify for regular benefits. Individuals applying for benefits would have to submit documentation to verify employment. States also would have to verify the identity of applicants. • Extending to 24 weeks, from 13 weeks, benefits for those who’ve exhausted regular benefits under the Pandemic Emergency Unemployment Compensation program. States would establish or defer the establishment of a new benefit year to provide regular or emergency benefits.

The additional benefits could continue through April 5, 2021, for individuals who haven’t exhausted them yet.

The measure also extends through March 14, 2021: • Federal payments to nonprofits and government agencies for half of their costs of providing unemployment benefits. • Interest-free federal loans for state unemployment trust funds. • Full federal funding to qualifying states for the Extended Benefit (EB) and work-sharing programs. • Partial federal funding for states to provide regular unemployment benefits without a waiting period. • Extra payments to railroad workers, which would be reduced to $600, from $1,200.

The measure waives the restriction on states to trigger Extended Benefit programs retroactive to November 1, 2020, and through December 31, 2021.

States will be required to have procedures in place to address unemployment claimants who refuse to return to work or refuse to accept an offer of work without good cause.

The measure provides an additional $100 weekly jobless benefit to self-employed individuals who earn at least $5,000 in the most recent tax year but weren’t eligible for benefits under the Pandemic Unemployment Assistance program. The additional benefit would be voluntary for states and would be added to the FPUC benefit through March 14, 2021.

The measure provides another round of direct payments of as much as $600 for an individual, $1,200 for joint filers, and $600 for each qualifying child.

It applies the similar income limits and phase-out as the CARES Act, reducing the payments by 5% for individuals with adjusted gross incomes of more than $75,000. Filers with an AGI greater

IFS Monthly Report 3 | Page

Innovative Federal Strategies LLC than $87,000 wouldn’t receive a payment. The CARES Act provided payments of $1,200 per individual.

Payments will be based on 2019 taxes. Payments could be issued for certain beneficiaries who didn’t file 2019 returns, including retired and disabled workers, Supplemental Security Income recipients, and veterans receiving VA benefits.

The measure reduces the payment to $600 for joint filers if the Social Security Number of only one spouse is included in the most recent return. It would provide an extra $600 for each child with an SSN or adoption taxpayer identification number.

Workers who’ve had their payroll taxes deferred since September will be given until December 31, 2021, to pay back the government, instead of through April 30, 2021, as originally directed by the Treasury Department.

The measure extends credits for paid sick and family leave provided under the second coronavirus relief package through March 31, 2021.

The measure also: • Clarifies that gross income wouldn’t include certain forgiven debt, emergency SBA disaster loans, and loan repayment aid provided by the CARES Act. • Allows employers to elect through 2021 to end certain transfers from pension plans to retiree health benefit or life insurance accounts. Under current law, as many as 10 years of retiree health and life expenses can be moved via a “qualified future transfer” provided a plan meets funding and maintenance of effort requirements. • Allows farmers to retain a two-year carryback, instead of five, for operating losses. • Directs the Treasury Department to issue regulations to make personal protective equipment and other supplies used to prevent the spread of Covid-19 eligible for the educator expense deduction. The rule would apply retroactively to March 12. • Excludes certain financial aid grants provided under the CARES Act from the gross income of college students.

The measure provides $25 billion for emergency rental assistance payments through the Treasury Department. It would set aside $400 million for and U.S. territories and $800 million for tribal grantees. The remaining funds would be allocated, within 30 days of enactment, to states and to localities with at least 200,000 people. Each state, as well as the District of Columbia, would receive at least $200 million.

Each grantee would have to use at least 90% of its allocation to provide financial assistance to eligible households, including for rental and utilities payments. Other funds could be used to provide housing stability services.

Funds provided to grantees would remain available through December 31, 2021, with some exceptions.

IFS Monthly Report 4 | Page

Innovative Federal Strategies LLC

The CARES Act temporarily barred landlords with federally backed mortgages from evicting tenants. After the moratorium expired, the Centers for Disease Control and Prevention expanded it to cover additional tenants and extended it through December 31 to prevent the further spread of Covid-19. The measure extends the CDC’s eviction moratorium for one month, through January 31, 2021.

The measure also provides the following emergency health-care funding: • $22.4 billion for testing and tracing for states, localities, territories, and tribes, including $2.5 billion to improve testing in minority populations and rural areas. • $19.7 billion for the Biomedical Advanced Research and Development Authority to produce and purchase vaccines, and $3.25 billion for the Strategic National Stockpile. • $8.75 billion for the Centers for Disease Control and Prevention for vaccine distribution, of which $4.5 billion would be for states, localities, territories, and tribes. • $4.25 billion for the Substance Abuse and Mental Health Services Administration. • $3 billion for health-care providers. • $1.25 billion for the National Institutes of Health to research Covid-19.

$81.9 billion is provided for the Education Stabilization Fund created by the CARES Act. It allocates the following amounts: • $54.3 billion for elementary and secondary schools. • $22.7 billion for higher education institutions, including $1.7 billion for historically Black colleges and universities, tribal colleges, and other institutions, and $680.9 million for for-profit colleges for financial aid. • $4.05 billion for emergency relief grants to states, $2.75 billion of which would be for private schools. • $818.8 million for territories and tribal education programs.

Schools that receive funding would have to continue to pay their employees and contractors during any closures, to the greatest extent practicable.

States that receive funds would have to maintain their support for schools in fiscal 2022 at proportional levels to the average over fiscal 2017 through 2019. The Education Department could waive the requirement to relieve burdens on states with precipitous declines in resources.

The measure includes the following amounts for transportation: • $15 billion for airlines to cover payroll expenses and $1 billion for airline contractors’ payroll expenses. • $14 billion for transit, including to cover operating expenses. • $10 billion for highway programs, which is intended to help state departments of transportation, as well as some local agencies, according to a summary from House Democrats. • $2 billion for airports. • $2 billion for private motorcoaches, school buses, ferries, and other transportation service providers. • $1 billion for Amtrak.

IFS Monthly Report 5 | Page

Innovative Federal Strategies LLC

The legislation increases monthly benefits for the Supplemental Nutrition Assistance Program by 15% from the June 2020 level, effective from January 1, 2021, through June 30, 2021. In June 2020, a family of four could receive as much as $646 per month in most states, though an increase to $680 per month took effect October 1.

The agreement also: • Excludes pandemic unemployment benefits from income for SNAP eligibility purposes. • Allows work-study students and students with expected family contributions of $0 to be eligible for SNAP until the health emergency ends.

The CARES Act authorized the Treasury Department to lend the U.S. Postal Service as much as $10 billion in additional funds to cover operating expenses during the Covid-19 emergency. On July 29, the Postal Service announced it reached an “agreement in principle” with the department on the terms of the loan. Under the measure, the Postal Service won’t be required to repay any money it borrows.

The CARES Act provided $150 billion for state, local, and tribal governments and U.S. territories to pay for unbudgeted expenses tied to the Covid-19 emergency. It limited the use of funds to cover emergency-related costs incurred from March 1 through December 31, if the spending wasn’t already accounted for in state or local budgets. The measure would extend the spending deadline to cover costs incurred through December 31, 2021. It wouldn’t provide any additional funding or spending flexibility.

The measure would provide a total of $7 billion for broadband activities.

The bill provides $10 billion through HHS for the Child Care and Development Block Grant for states, territories, and tribes to support childcare providers in sustaining operations during the Covid-19 pandemic. Funds could be used to provide relief from copayments and tuition for families. States, territories and tribes would be encouraged to place conditions on payments to ensure providers continue to pay staff salaries.

Finally, the measure would provide $2 billion for the Federal Emergency Management Agency’s Disaster Relief Fund. It would allow a federal cost share of 100% for financial assistance to an individual or household to meet disaster-related funeral expenses through December 31, 2020.

Trump Administration Narrows Protection of Habitat for Endangered Species During the month of December, the Trump administration narrowed habitat protections for endangered species, finalizing its major rollback to the Endangered Species Act through two new rules.

The first rule, announced Tuesday, December 15, narrows the definition of habitat to areas that can currently support a species, a move environmentalists say ignores the changing climate or efforts that could be made to modify a landscape.

IFS Monthly Report 6 | Page

Innovative Federal Strategies LLC

Environmentalists argue the government must be able to step in to protect land that could support an animal in the future, by protecting forests, for example, that in a few decades would have enough old growth trees to house spotted owls that currently dwell elsewhere.

The Tuesday rule from the Fish and Wildlife Service would only allow habitat that “currently or periodically” houses a species. The agency said the new rule would “bring greater clarity and consistency to how the Service designates critical habitat.”

The move garnered support from Western Republicans who have often argued the Endangered Species Act is too restrictive, complicating land use for farmers, ranchers and industry.

“The Trump administration’s habitat rule will make the Endangered Species Act work better for wildlife and people,” Senate Environment and Public Works Committee Chair John Barrasso (R- WY) said in a statement.

“This final rule will more clearly define habitat and protect species in a more focused way. It will deliver commonsense protections for endangered species and the habitat they depend on” Senator Barrasso added.

An additional rule announced on Thursday, December 17, first proposed in September, would require the Fish and Wildlife Service (FWS) not to give an area critical habitat protection if an analysis determines that there are more benefits to not providing the protections.

The new rule would also require the government to weigh benefits that are “consistent with expert or firsthand information,” for areas that are determined to be outside the scope of FWS’s expertise.

It said that such areas include non-biological impacts identified by a state and local governments, tribes or company with a federal lands permit or lease.

Critics say that this could be used to tip the scales against conservation and in favor of industry, even allowing them to use their own determinations of what the benefits of excluding an area from a critical habitat designation might be.

House Democrats, Republicans Select Committee Chairs, Ranking Members The House Democratic Caucus and Republican Conference voted during the week of November 30 to fill a number of vacancies in committee leadership that resulted from retirements and the election.

Following the announcements of the committee chairs from the Democratic Caucus, Speaker of the House Nancy Pelosi (D-CA) stated “our Caucus, the Congress and the nation have been blessed and strengthened by the strategic experience, bold vision and tireless service that these outstanding Members bring to the table.”

IFS Monthly Report 7 | Page

Innovative Federal Strategies LLC

Representative Rosa DeLauro (D-CT) will be the next House Appropriations Committee Chairwoman following a vote by the House Democratic Caucus. She'll be the second woman to chair the House Appropriations Committee, filling the vacancy left by retiring Chairwoman Nita Lowey (D-NY).

The Democratic Steering Committee, which decides members' committee assignments, voted to recommend Representative DeLauro for the Appropriations vacancy over Representatives Marcy Kaptur (D-OH) and Debbie Wasserman Schultz (D-FL), who also vied for the gavel.

House Democrats voted to ratify DeLauro's recommendation with 148 votes over Wasserman Schultz's 79 after Kaptur dropped out of the race.

Representative DeLauro will take over the role when the new Congress takes office in January. A close ally of Speaker Nancy Pelosi (D-CA), Representative DeLauro has served in the House since 1991. She will be at the helm of the powerful committee which oversees funding for the entire federal government.

Representative Lowey, who has served as the top Democrat on the Committee since 2013, praised DeLauro as "a legislative partner of mine for three decades" and "a tireless advocate for the most vulnerable people in our nation."

Appropriations Subcommittee Chairs have not yet been decided, but a number of retirements of the current “Appropriations Cardinals” will lead to a number of shuffles on the House Appropriations Committee. Those assignments are expected in the coming weeks.

Other Democrat members who will be taking over Chairmanship from a current Member who will not be returning in the 117th Congress include Representative David Scott (D-GA) will become Chairman of the House Agriculture Committee, and Representative Gregory Meeks (D- NY) who will become Chairman of the House Foreign Affairs Committee. Representatives Scott and Meeks are the first African American chairs of their respective committees.

For Republicans, there will be a number of members who were newly elected to the position of Ranking Member of various committees. They include: • Agriculture: Representative G.T. Thompson (R-PA) • Armed Services: Representative Mike Rogers (R-AL) • Budget: Representative Jason Smith (R-MO) • Energy & Commerce: Representative Cathy McMorris Rodgers (R-WA) • Natural Resources: Representative Bruce Westerman (R-AR) • Small Business: Representative Blaine Luetkemeyer (R-MO) • Veterans Affairs: Representative Mike Bost (R-IL)

Modest PFAS, Climate Provisions Survive Defense Bill Talks The Defense Department would need a multi-pronged approach to address toxic per- and polyfluoroalkyl substances (PFAS) in firefighting foam, under a deal on the National Defense

IFS Monthly Report 8 | Page

Innovative Federal Strategies LLC

Authorization Act for fiscal year 2021 unveiled Thursday, December 3 by House and Senate negotiators.

Such approaches would include notifying defense-related panels, such as the House and Senate Armed Services committees, of any uncontrolled releases of firefighting agents containing PFAS, and notifying agricultural operations of suspected water supply contamination.

The agreement also authorizes a total of $1.4 billion for environmental remediation, including PFAS cleanups, at former and current military installations. The legislation could get floor votes in the House and Senate as soon as next week.

The provisions mark yet another year of increased congressional attention to PFAS contamination. The annual defense authorization measure has become a battleground over efforts to strengthen regulation of PFAS and help communities fighting contamination of their drinking water.

Left out of the bill are several major House provisions, including a provision requiring DOD to disclose the results of any testing for PFAS at current or former military sites, along with an attempt to ban the incineration of aqueous film-forming foam. Efforts to cover the cost of PFAS- related blood testing and requiring manufacturers to disclose to EPA all discharges of PFAS over 100 pounds for inclusion in the Toxics Release Inventory also failed to make the cut.

Conservation advocates lost battles to secure several public lands protections in the final defense bill — priorities that were adopted as amendments in the House-passed NDAA but not in the Senate's and fell to the wayside in the final stages of negotiating a bicameral product.

One of those priorities was S. 823, the "Colorado Outdoor Recreation and Economy (CORE) Act," which would guarantee the state about 73,000 acres in new designated wilderness and around 80,000 acres of new recreation and conservation management areas.

Another conservation priority, the "Protecting America's Wilderness Act," was also not included in the NDAA agreement. The legislation, H.R. 2546 — a package of six individual bills to protect nearly 1.3 million acres of wilderness and designate more than 1,000 miles of rivers across Colorado, California and Washington state — was, like the "CORE Act," adopted as an amendment to the House version of the NDAA but not in the Senate's.

The House-Senate conference report on the National Defense Authorization Act also includes provisions to address climate change, including a requirement that the Defense Department update its climate change roadmap to better prepare for and respond to climate impacts.

The conference language also directs the Pentagon to provide a report card on its implementation of climate requirements in last year’s defense authorization bill, including updates to its building codes and modeling of sea-level rise.

On Wednesday, December 23, President Trump followed through on his threat to veto a massive annual defense policy bill.

IFS Monthly Report 9 | Page

Innovative Federal Strategies LLC

The House voted on Monday, December 28 to override President Trump’s veto. The Senate is expected to follow suit in the coming days, though the final vote could occur in early January. The Senate will need a 2/3 majority vote and must take a final vote before noon on January 3, when the 117th Congress will be sworn in.

House Passes Legislation to Decriminalize Marijuana, Expand Marijuana Research During the month of December, two pieces of legislation passed the House related to marijuana.

On Friday, December 4, the House passed sweeping legislation that would decriminalize marijuana at the federal level, the first time either chamber of Congress has voted to legalize cannabis.

The measure, the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, passed on a largely party-line vote of 228-164.

Six Democrats voted against the legislation and five Republicans voted for it. The GOP- controlled Senate is not expected to take up the measure.

The legislation would remove marijuana from the federal list of controlled substances and expunge some marijuana convictions for nonviolent criminals.

“The MORE Act is a common-sense bill that will make a tangible, real difference in the lives of millions of Americans. I'm proud of this bill centered around ideals of racial, economic, and moral justice and I look forward to the House passing it today,” House Judiciary Committee Chairman Jerry Nadler (D-NY), who introduced the bill, said on Friday before the House’s vote.

The bill would allow states to continue to establish their own rules and regulations regarding sales and access to medical marijuana. Individuals would no longer be prosecuted federally for marijuana offenses, leaving the question of legality to states.

Senate Republicans have declined to take up similar legislation passed by the House. In September 2019, the House passed a measure that would allow banks to work with cannabis businesses, but it has not advanced in the Senate.

Additionally, the House on Wednesday, December 9 passed legislation that would expand scientists’ ability to study marijuana in states where the drug is already legal.

The legislation would remove prohibitions under the Controlled Substances Act on researching the drug and direct the Departments of Health and Human Services and Justice to create a body to grant licenses to more producers and manufacturers of research marijuana. Researchers with federal licenses would also be permitted to use those products for research approved under the Food and Drug Administration.

IFS Monthly Report 10 | Page

Innovative Federal Strategies LLC

Marijuana research is currently limited to just a few strains grown by the University of Mississippi, the only institution in the country that is legally allowed to produce the drug under federal research laws. Scientists have said the university’s marijuana does not represent that which is used for everyday consumption, and expanded research opportunities have bipartisan support in both chambers of Congress.

The Drug Enforcement Administration (DEA) said last year it would begin processing applications from other institutions to grow research marijuana, though none have been approved. Advocates had remained skeptical that the DEA under President Trump would allow for expanded marijuana research.

President-elect Joe Biden has not spoken extensively about marijuana research in particular, though he has taken a less hostile stance than President Trump and other Republicans and has come out in favor of decriminalizing the drug and expunging past criminal convictions for possession.

EPA Guidance May Exempt Some Water Polluters from Permit Mandate The Environmental Protection Agency (EPA) on Tuesday, December 8 released a draft guidance that interprets a Supreme Court decision in a way that may exempt some facilities from needing permits to pollute groundwater.

In April, the court decided that a permit is required for both direct discharges of pollutants into federally-regulated rivers and oceans as well as their “functional equivalent” in groundwater that flows into regulated waters.

The EPA’s new draft guidance says that whether a pollution discharge into groundwater should be considered a “functional equivalent” depends on “what happens to the discharged pollutant over that time and distance traveled” to the regulated body of water.

Specifically, it states that if the composition or concentration of pollutant that ultimately reaches the water is “different” from that which was originally discharged, it “might not” be considered a functional equivalent.

It also states that some facilities may be “less likely” to require a permit if it uses a waste storage or treatment system rather than if it discharges pollutants “consistently and predictably” into groundwater.

The agency argued that its guidance will help industry understand when they need permits.

“EPA’s guidance will address several questions that the regulated community and others have raised since the Supreme Court issued its decision earlier this year,” said EPA assistant administrator for Water David Ross in a statement. “Understanding when ... permits are needed is critical to the efficient administration of our Clean Water Act permitting programs.”

IFS Monthly Report 11 | Page

Innovative Federal Strategies LLC

Before the guidance is finalized, it’s expected to undergo a 30-day comment period, not leaving a lot of time for finishing it up for publication in the Federal Register, leading some to be skeptical about whether it will actually be completed before Joe Biden is inaugurated.

EPA Finalizes Air Rule that Critics Say Favors Polluters The Trump administration on Wednesday, December 9 finalized a rule changing how incoming administrations evaluate their air regulations, something critics say will undermine future attempts to reduce air pollution.

The rule changes how the government justifies its own air pollution regulations, limiting how the Environmental Protection Agency (EPA) weighs carbon pollution that impacts climate change as well as the benefits of tackling multiple air pollutants at once.

“Up to now there have been no regulations to hold us, the EPA, accountable to a standardized process and guarantee the public can now see how those calculations informed decisions,” EPA Administrator Andrew Wheeler said.

Under the new rule, the EPA will be encouraged to make decisions about air regulations based on a narrow look at their potential costs and benefits, focusing on those effects directly tied to specific pollutants targeted by rules and not any additional environmental improvements. The agency also will be directed to focus on U.S. benefits, a shift that could affect future rules aimed at fighting the global problem of climate change.

Under the new cost-benefit rule, set to take effect as soon as it appears in the Federal Register, the EPA will be required to clearly report the results of its analysis and make the underlying data publicly available. With the requirements embedded in regulation, outside groups can go to court to challenge EPA actions that run afoul of the mandates.

The rule will apply to any new regulation proposed under the Clean Air Act, a law President- elect Joe Biden is likely to turn to in order to meet his goals of getting the U.S. on a path to reach net-zero carbon emissions by 2050.

Biden Administration Plans to Take Early Action on Climate, Infrastructure With a little over a month to go until President-elect Joe Biden’s inauguration, an infrastructure package and action on climate change appear to be two topics that his administration is expected to take early action on.

Biden’s team is eyeing a major infrastructure package as a way to boost the economy and advance its climate priorities, with lawmakers on both sides of the aisle eager for progress. Democrats and Republicans alike agree that the nation’s crumbling roads and bridges are badly in need of repairs.

IFS Monthly Report 12 | Page

Innovative Federal Strategies LLC

The coronavirus pandemic, however, has created an opening for large spending bills, and infrastructure proponents are hoping there will be momentum for legislation early next year to help the faltering economy.

While such legislation would aim to fund typical road and bridge projects, Democrats are likely to push for bigger investments in clean energy, transit, broadband and more that were laid out in Biden’s campaign proposals.

But those ambitions could be hamstrung by the GOP’s renewed interest in battling the deficit, particularly if Democrats eye a transportation bill as a form of fiscal stimulus.

House Democrats have already laid out their vision for how an infrastructure package could be used to boost environmental priorities. A $1.5 trillion package passed in July, but not taken up in the Senate, tied funding to states’ carbon reduction efforts and provided billions for drinking water, transit and clean energy. The measure also would create jobs between the construction ones normally associated with infrastructure by focusing on design, engineering and small business as well.

Biden largely views his $2 trillion climate plan in the same vein, as a job creator. Another central feature of Biden’s climate plan is a massive investment in renewable energy, pushing the utility sector to go carbon-neutral by 2035, and has set another goal to make the United States carbon neutral by 2050. On the federal level, achieving that goal will mean incentivizing the development and deployment of wind, solar and other renewable energy technologies.

Biden will take office at a time when transportation systems are reeling from a loss of ridership during the pandemic. His administration plans to boost public transportation as a key way to reduce emissions, since the broader transportation sector is the largest source of greenhouse gas emissions in the U.S.

Additionally, Biden is expected to take several actions in the new year aimed at reducing greenhouse gas emissions.

He has promised to sign executive orders on his first day in office that “put us on the right track” toward net-zero emissions by 2050 and a 100 percent clean energy economy, though what those orders will say exactly is unclear.

The Biden administration is expected to lessen fossil fuel production on public lands and take steps to increase public lands conservation.

Biden's plan calls for banning new oil and gas drilling permits on public lands and in public waters. He has not called for the end of existing permits to drill on federally owned lands and waters, but has endorsed boosting payments to the government to account for climate costs. Biden has said he wants to create programs for producing renewable energy on public lands and waters, and specifically wants to double offshore wind by 2030.

IFS Monthly Report 13 | Page

Innovative Federal Strategies LLC

He will also push to make more of America’s lands public, with his climate plan calling for conserving 30 percent of the nation’s lands by 2030.

Biden Expected to Revive Mothballed Public Land Advisory Boards The Biden administration has an opportunity to revive advisory councils that provide the land bureau local input on reducing wildfire risk and locating energy projects.

The bureau’s more than 30 federally-chartered resource advisory councils, known as Resource Advisory Councils (RACs), have withered during the Trump administration, often failing to meet for years at a time. Active for decades during previous administrations, the council provide a local voice in federal lands decisions affecting more than 240 million acres of public land across the West.

The Biden transition team has already shown interest in turning things around, listening to employees about their interest in the councils – the team is expected to begin interviewing bureau employees and advisory council members this month to consider how to reinvigorate them.

Many of the councils have been barred from meeting formally during the Trump administration because the White House and the Interior Department have held up so many nominations that many RACs don’t have enough members for a quorum.

The Interior Department under Trump re-charted many of the RACs, shifting them to focus on advising bureau officials on specific regulations they should overturn and finding new ways to expand oil and gas development on federal land, in addition to advising on recreation.

The Interior Department temporarily halted council operations in 2017 while it reviewed the charters of advisory councils throughout the agency. Some were never fully revived while never being formally disbanded. The move predated Trump’s June 2019 executive order calling for cuts to the number of federal advisory committees.

The Biden administration should use the RACs to influence local federal lands management— their original intent, current and former council members say.

President-Elect Biden Announces Picks to Lead EPA, Interior Last week, President-Elect Joe Biden announced his nominees for a variety of positions focused on environment and outdoors, including Michael Regan to head the Environmental Protection Agency (EPA) and Representative Deb Haaland (D-NM) for Interior Secretary.

Michael Regan is currently head of North Carolina’s Department of Environmental Quality. In his current position, he led North Carolina’s adoption of an aggressive climate change policy that in 2018 called for a 40% drop in greenhouse gas emissions by 2025, compared to 2005 levels.

IFS Monthly Report 14 | Page

Innovative Federal Strategies LLC

He previously worked for the EPA under the Clinton and George W. Bush administrations before heading to the Environmental Defense Fund as its southeast regional director. Regan’s experience implementing climate change policies through the executive branch could help inform his approach at the EPA, as Biden’s ambitious climate change agenda could be difficult to push through a divided Congress.

Representative Haaland will be a powerful force for conservation, amplifying tribal voices and shifting the Interior Department’s fossil fuels focus toward protecting public lands and acting on climate change, observers say.

Haaland, a native of New Mexico’s Laguna Pueblo, would be the first Indigenous Interior secretary. She would oversee more than 400 million acres of public lands nationwide in addition to water supplies across the West, all federally-owned onshore and offshore oil, gas, and coal, and the administration of all U.S. Indian reservations and many Native schools.

Other priorities include possibly restricting oil and gas leasing in Alaska’s Arctic National Wildlife Refuge, moving Bureau of Land Management headquarters back to Washington from Colorado, settling all pending environmental court cases against Trump administration oil and gas leasing decisions, and defending the Bureau of Land Management’s Obama-era natural gas waste prevention, or anti-flaring, rule.

Ahead of her nomination, Representative Haaland said in a statement December 15 that Trump administration steps to narrow the effectiveness of the Endangered Species Act gives the upper hand to Trump’s “corporate friends.”

“They ignore the fact that everything in nature is connected. and climate change is driving wildlife from its historic habitat and excluding areas where species move” to survive, she said.

Regan would join a team of other high-ranking environmental regulators set to be part of the Biden administration.

However, Representative Haaland may face a tough path to confirmation in the Senate.

Criticism has focused on the Congresswoman because of her past support for the Green New Deal and endorsement of a ban on fracking, the oil industry technique that has boosted U.S. crude production to record levels.

“We will be in a bit of a brawl,” Senator Kevin Cramer (R-ND) said last week about the confirmations, “we’re going to have to stand our ground and fight the fight.”

Senator John Barrasso (R-WY) who is slated to head the Energy and Natural Resources Committee that will vet Representative Haaland’s nomination, if the GOP retains control of the Senate stated “While I have not had the opportunity to work with Representative Haaland on these issues, I will keep an open mind during the vetting process” he commented.

IFS Monthly Report 15 | Page

Innovative Federal Strategies LLC

In addition to Representative Haaland and Mr. Regan, former EPA administrator Gina McCarthy is expected to serve in a newly created climate coordinator role, while former Michigan Governor Jennifer Granholm will lead the Department of Energy.

Staffing Please see below for a table of potential officials that President-elect Biden may pick for various roles in his cabinet, as well as officials that he has announced his intention to nominate. We will update the table each week as President-elect Biden announces his intent to nominate certain officials for various cabinet positions.

Administration Transition Please see below for a table of potential officials that President-elect Biden may pick for various roles in his cabinet, as well as officials that he has announced his intention to nominate.

Officials already announced by President-Elect Biden:

Position Official Career History Chief of Staff Ron Klain Former Chief of Staff to Joe Biden when he was VP; former Chief of Staff to VP Al Gore Chief of Staff to Jill Biden Julissa Reynoso Partner at the law firm Winston & Strawn; former U.S. Pantaleon Ambassador to Uruguay and deputy Assistant Secretary of State in the Obama Administration Counsel Dana Remus General counsel to Joe Biden’s campaign; deputy assistant and deputy counsel for ethics to President Obama. Counselor Steve Ricchetti Chief of Staff to Vice President Joe Biden during the Obama administration and Deputy Chief of Staff for Operations under President Bill Clinton. Deputy Chief of Staff Jennifer O’Malley Joe Biden's presidential campaign manager, Former Dillon Executive Director of DNC, deputy manager of President Obama's 2012 campaign. Director of Oval Office Annie Tomasini Currently Joe Biden’s traveling Chief of Staff. Former Operations deputy Press Secretary for Joe Biden when he was VP. Director of White House Julie Rodriguez Deputy campaign manager of Joe Biden’s presidential Office of Intergovernmental campaign. served as special assistant to the president Affairs and senior deputy director of public engagement in the Obama Administration. Senior Adviser Mike Donilon chief strategist for the Biden campaign; previously served as a counselor to then-Vice President Biden in the Obama White House Senior Adviser to Jill Biden Anthony Bernal Deputy campaign manager and Chief of Staff to Jill Biden during the presidential campaign. Senior Advisor and Director Cedric Richmond Currently U.S. Representative to Louisiana’s 2nd of the White House Office of congressional district who also served as co-chairman Public Engagement of President-Elect Biden’s campaign. National Security Adviser Jake Sullivan Former National Security Adviser to VP Biden

IFS Monthly Report 16 | Page

Innovative Federal Strategies LLC

Department of State Antony Blinken Served in various roles in the Obama Administration including deputy secretary of state, assistant to the president and principal deputy national security adviser

Department of Homeland Alejandro Mayorkas Deputy secretary of Homeland Security during the Security Obama administration, and served as the director of the Department of Homeland Security's United States Citizenship and Immigration Services. Director of National Avril Haines Former Deputy NSA, Former Deputy Director of the Intelligence CIA Special Presidential Envoy John Kerry Former Secretary of State for Climate Treasury Janet Yellen Served as the Chair of the Federal Reserve from 2014 to 2018 UN Ambassador Linda Thomas- Deputy Assistant Secretary, Bureau of Population, Greenfield Refugees and Migration (2004–2006), Ambassador to Liberia (2008–2012), and Director General of the Foreign Service and Director of Human Resources (2012–2013) White House Deputy Director Shuwanza Goff Currently Deputy Director for Legislative Operations for Legislative Affairs for House Majority Leader Steny Hoyer. White House Kate Bedingfield Former Biden campaign communications director, and Communications Director communications director for Biden when he served as Vice President White House Press Secretary Jen Psaki Served as White House communications director from 2015-2017, held various communications and press roles in the Obama Administration. Council of Economic Cecilia Rouse Member of the Council of Economic Advisers in the Advisers Chair Obama Administration. National Economic Council Brian Deese Managing Director is Global Head of Sustainable Investing at BlackRock. Former senior advisor in the Obama Administrion, and deputy director of the Office of Management and Budget. Chief of Staff to VP Harris Tina Flournoy former President Bill Clinton's Chief of Staff. Domestic Policy Adviser to Rohini Kosoglu Currently a Senior Adviser to Senator Harris VP Harris National Security Adviser to Nancy McEldowney Director of European Affairs on NSC in Clinton VP Harris Administration, former U.S. Ambassador to Bulgaria, and principal deputy assistant secretary of State in Bureau of European and Eurasian Affairs Communications Director to Ashley Etienne Strategic Adviser for Biden campaign, former VP Harris Communications Director for Speaker Pelosi, Communications Director in the Obama Administration and senior adviser. Senior adviser and Chief Symone Sanders Senior Adviser for Biden's presidential campaign. Spokesperson to VP Harris former CNN commentator HHS Xavier Becerra Currently Attorney General of California Chief Medical Officer Anthony Fauci Director of National Institute of Allergy and Infectious Diseases since 1984. Served as one of the leading members of President Trump's Coronavirus Task Force.

IFS Monthly Report 17 | Page

Innovative Federal Strategies LLC

Surgeon General Vivek Murthy Former Surgeon General under the Obama Administration and Vice Admiral of the U.S. Public Health Service Commissioned Corps. Defense Lloyd Austin Retired four-star Army general, former head of U.S. Central Command and military forces in Iraq Agriculture Tom Vilsack Currently president of the U.S. Dairy Export Council; served as agriculture secretary under President Obama HUD Marcia Fudge Current Representative for Ohio's 11th congressional district U.S. Trade Representative Katherine Tai Currently Chief Trade Counsel on House Ways and Means Veterans Affairs Denis McDonough Former White House Chief of Staff and deputy National Security Adviser during the Obama administration Head of White House Susan Rice National Security Adviser and Ambassador to the Domestic Policy Council United Nations under Obama Administration Transportation Pete Buttigieg Former Mayor of South Bend, Indiana White House Office of Gina McCarthy Former Air Chief of EPA in Obama's first term and as Domestic Climate Policy EPA administrator in his second Energy Jennifer Granholm Former Governor of Michigan White House Council on Brenda Mallory Current director of regulatory policy at the Southern Environmental Quality Environmental Law Center, and previously worked as CEQ’s general counsel during the Obama administration EPA Administrator Michael Regan Currently Secretary of the North Carolina Department of Environmental Quality and has previously served at the EPA Interior Deb Haaland Current Representative for New Mexico's 1st congressional district Education Miguel Cardona Currently Connecticut’s education commissioner

Officials under consideration for various cabinet positions:

Position Possible Prior Administration Experience / Current Role Candidate Attorney Doug Jones Current junior U.S. senator from Alabama. Former U.S. Attorney for the General North District of Alabama. Attorney Sally Yates Former Acting Attorney General appointed by President Obama General Attorney Vanita Gupta Former Principal Deputy Assistant Attorney General General Attorney Amy Klobuchar Current Senator from Minnesota General Attorney Stacey Abrams Former Member of the Georgia House of Representatives General Attorney Preet Bharara Former U.S. Attorney for the Southern District of NY under President General Obama Attorney Tom Perez Chair of the Democratic National Committee General

IFS Monthly Report 18 | Page

Innovative Federal Strategies LLC

Attorney Jeh Johnson Former DHS Secretary; Former DoD General Counsel General Attorney Andrew Cuomo Current Governor of New York General Central Tom Donilon Former National Security Advisor to President Obama, Former Assistant Intelligence Secretary of State for Public Affairs under President Clinton Agency Director Central Avril Haines Former Deputy NSA, Former Deputy Director of the CIA Intelligence Agency Director Central David Cohen Former Deputy Director of the CIA under President Obama, Former Intelligence Undersecretary of the Treasury for Terrorism and Financial Intelligence Agency Director Central Brett Holmgren Former Special Assistant to President Obama, Former Senior Director for Intelligence Intelligence Programs on the NSC Agency Director Central Michael Morell Former Deputy Director CIA Intelligence Agency Director Central Jackier Speier Current U.S. Representative from California's 12th congressional district Intelligence Agency Director Central Mike Vickers Former USD(I), Former ASD(SO/LIC Intelligence Agency Director Chair of Jared Bernstein Former Chief Economist and Economic Adviser to VP Biden Council of Economic Advisors Chair of Heather Boushey President and CEO of the Washington Center for Equitable Growth and Council of Former Economist for the U.S. Congress Joint Economic Committee Economic Advisors Chair of Jason Furman Former Chair of the Council of Economic Advisors under President Council of Obama Economic Advisors Chair of Ben Harris Former Chief Economist and Chief Economic Advisor to VP Biden Council of Economic Advisors Chair of Gene Sperling Former Director of the National Economic Council and Assistant to Council of Presidents Clinton and Obama for Economic Policy Economic Advisors Commerce Andrew Yang Entrepreneur and former 2020 Democratic presidential candidate; joined CNN as a political commentator in February, after dropping out of the presidential race

IFS Monthly Report 19 | Page

Innovative Federal Strategies LLC

Commerce Tom Nides Managing Director and Vice Chairman of Morgan Stanley; Former U.S. Deputy Secretary of State for Management and Resources Commerce Ursula Burns Former CEO of Xerox; Former Head of President Obama’s Export Council Commerce Rohit Copra Commissioner of the Federal Trade Commission under President Trump, Former Assistant Director of the CFPB Commerce Susan Helper Professor of Economics at Case Western Reserve University, Former Chief Economist of the U.S. Department of Commerce under President Obama Commerce Meg Whitman Former CEO of Quibi Commerce Terry McAuliffe Former Governor of Virginia and Ex-Chair of the Democratic National Committee Commerce Mellody Hobson President and CEO of Ariel Investments Labor Andy Levin Current Representative for Michigan's 9th Congressional district Labor Bernie Sanders Current third-term U.S. Senator from Vermont Labor Sara Nelson International president of the Association of Flight Attendants-CWA Labor Marty Walsh Mayor of Boston Labor Bill Spriggs Former Assistant Secretary of Labor for Policy Labor Sharon Block Former Head of Policy at DOL Labor Julie Su Secretary of the California Labor and Workforce Development Agency Labor Tom Perez Chair of the Democratic National Committee Labor Seth Harris Former Deputy Labor Secretary Labor Patrick Gaspard Current President of Open Society Foundations, former Aide to President Obama USAID Samantha Power Former U.S. Ambassador to the United Nations

IFS Monthly Report 20 | Page

STAFF REPORT Date: January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Nomination of Randall James Reed to the ACWA/JPIA Executive Committee

Purpose Consideration of Resolution No. 2021-1-2 nominating President Randall James Reed to the Association of California Water Agencies/Joint Powers Insurance Authority’s (JPIA) Executive Committee.

Background/Analysis The JPIA Executive Committee consists of eight members elected by the JPIA Board of Directors and the ACWA Vice President as an ex officio member. The JPIA’s Board President appoints Executive Committee members to act as Chairs and Vice Chairs for the Committees which include: Liability Program, Property Program, Workers’ Compensation Program, Employee Benefits, Risk Management, and the Personnel Advisory Committee. Program Committees were created as a means of facilitating input from the member agencies. All Committees make their recommendations to the Executive Committee, which has the responsibility of balancing committee requests with the needs of the JPIA as a whole.

JPIA will hold elections in spring of 2021 for four Executive Committee Member positions each for a four-year term. President Reed currently serves as the District’s representative on the JPIA Board of Directors and was appointed to their Executive Committee in January 2020 to fill a vacancy. He has expressed interest in continuing his service on the Executive Committee. The current Executive Committee Members include:

Committee Member Organization Term Exp. Jerry Gladbach (President) Santa Clarita Valley Water Agency 2023

Tom Cuquet (Vice President) South Sutter Water District 2021 Incumbent Fred Bockmiller Mesa Water District 2023

David Drake Rincon del Diablo Municipal WD 2021 Incumbent Brent Hastey Yuba Water Agency 2023

Melody McDonald San Bernardino Valley WCD 2021 Incumbent Randall James Reed Cucamonga Valley Water District 2021 Incumbent January 26, 2021 Nomination of President Reed to the ACWA/JPIA Executive Committee Page 2

Bruce Rupp Humboldt Bay Municipal WD 2023

Pamela Tobin ACWA Vice President Ex-Officio

Candidates must submit a nominating resolution from their agency, as well as resolutions concurring in nomination from three other member agencies by the deadline of March 19, 2021. Once nominated by CVWD, staff will assist President Reed in his campaign for endorsements and submitting his candidate packet.

Alignment with Strategic Goals The Board of Directors action on this item is consistent with the District’s strategic goal of engagement with statewide advocacy groups whose activities impact water policy.

Fiscal Impact There is no fiscal impact from the Board of Directors taking action on this item.

Recommendation It is recommended that the Board of Directors adopt Resolution No. 2021-1-2 Nominating Randall James Reed to the ACWA/JPIA Executive Committee

Attachments: Resolution No. 2021-1-2

Submitted by: Taya Victorino, Executive Assistant

RESOLUTION NO. 2020-1-2

RESOLUTION OF THE BOARD OF DIRECTORS OF THE CUCAMONGA VALLEY WATER DISTRICT NOMINATING ITS JPIA BOARD MEMBER TO THE EXECUTIVE COMMITTEE OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES JOINT POWERS INSURANCE AUTHORITY ("JPIA")

WHEREAS, this district is a member district of the JPIA that participates in all four of its Programs: Liability, Property, Workers’ Compensation, and Employee Benefits; and WHEREAS, the Bylaws of the JPIA provide that in order for a nomination to be made to JPIA's Executive Committee, the member district must place into nomination its member of the JPIA Board of Directors for such open position; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CUCAMONGA VALLEY WATER DISTRICT that its member of the JPIA Board of Directors, Randall James Reed, be nominated as a candidate for the Executive Committee for the election to be held during the JPIA’s spring 2021 Board of Directors’ meeting. BE IT FURTHER RESOLVED that the JPIA staff is hereby requested, upon receipt of the formal concurrence of three other member districts to affect such nomination. BE IT FURTHER RESOLVED that the District Secretary is hereby directed to transmit a certified copy of this resolution to the JPIA at P.O. Box 619082, Roseville, CA 95661- 9082, forthwith.

APPROVED, ADOPTED AND SIGNED this 26th day of January 2021.

CUCAMONGA VALLEY WATER DISTRICT

Randall James Reed President

ATTEST:

John Bosler Secretary and General Manager/CEO

STAFF REPORT Date: January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Bridge Point Rancho Cucamonga Warehouse project Water Supply Assessment

Purpose CVWD is considering approval of a Water Supply Assessment (WSA) for the Bridge Point Rancho Cucamonga warehouse project (BPRC). The WSA was prepared pursuant to the requirements of the WSA Statute, California Water Code sections 10910 to 10915.

Background/Analysis Under Senate Bill 610, a WSA is required for certain “projects” as defined by Water code section 10912, including but not limited to a proposed industrial, manufacturing, or processing plant, or industrial park planned to house more than 1,000 persons, occupying more than 40 acres of land, or having more than 650,000 square feet of floor area. A WSA is required to demonstrate water demands of a project can be met by a water purveyor. A WSA must evaluate whether the total projected water supplies available to a water purveyor during normal, single-dry, and multiple-dry years over the next 20-year projection are sufficient to meet water demands. The evaluation must also consider the existing and planned future uses, including agricultural and manufacturing uses.

The City of Rancho Cucamonga is the lead organization overseeing the development of the Bridge Point Rancho Cucamonga warehouse project (BPRC). The project is located in the south east portion of the District’s service area east of Interstate 15 between 4th Street and 6th Street, as indicated on the attached location map. It covers 91.4 gross acres and is zoned for Heavy Industrial and General Industrial land uses. The site previously received water service for retail, warehouse, and ancillary office uses. The proposed project will replace the existing development with two warehouse structures with a combined warehouse space of 2,175,000 square feet (net increase of 721,000 square feet) and housing 1,479 employees (net increase of an estimated 277 employees).

The WSA for the BPRC was written by Charles Marr Consulting (CMC), one of the developer’s consultants responsible for all infrastructure planning in the BPRC. Staff provided data for the preparation and performed reviews of the document. The primary source of data is the District’s 2015 Urban Water Management Plan (UWMP). At the time the 2015 UWMP was developed and submitted, it did not consider this development. However, the UWMP was helpful in analyzing supplies to meet additional demands of the current plan.

The WSA analysis considers demand to begin in 2021 or 2023 with a net increase water demand of 22.4 acre-feet per year (AFY). The Final Administrative Draft of the WSA demonstrates that there is sufficient available supply to meet demands during all scenarios.

January 26, 2021 Bridge Point Rancho Cucamonga Warehouse Project Water Supply Assessment Page 2

Staff has reviewed the WSA and concurs with its conclusion, that the total projected water supplies available to the District during normal, single-dry, and multiple-dry water years over the next 20-year projection are sufficient to meet the projected water demands of the proposed BPRC project, in addition to the District’s existing and planned future uses, including agricultural and manufacturing uses. Staff notes that the WSA has been prepared in accordance with the WSA statute (Water Code sections 10910-10915) and not as a Written Verification under Government Code section 66473.7. As such, nothing in the WSA is intended to create a right or entitlement to water service or any specific level of water service, nor does the WSA impose, expand, or limit any duty concerning the obligation of the District to provide service to its existing customers or to any future potential customers. (See Water Code section 10914). Nor does anything in the WSA prevent or otherwise interfere with the District’s discretionary authority to declare a water shortage emergency in accordance with Water Code section 350 et seq., and to take any and all related actions authorized by law. The WSA is not a commitment to serve the proposed project, but a review of the District’s total projected water supplies based on information presently available. The WSA, the analyses, and conclusions therein are conditioned in part on the ability of Metropolitan Water District and Inland Empire Utilities Agency to continue to supply imported water to meet the supplemental water needs of the region.

This item was presented to the Engineering Committee on January 19, 2021 and to the Water Resources Committee on January 21, 2021.

Alignment with Strategic Goals This item aligns with the District’s Water Operational Goal to maintain operational flexibility between imported water, groundwater, surface water, and recycled water. The review of the WSA ensures the future of the District’s water supply is appropriately planned to accommodate new development.

Fiscal Impact There is no fiscal impact at this time.

Recommendation It is recommended that the Board of Directors adopt Resolution No. 2021-1-4 Approving a Water Supply Assessment for the Bridge Point Rancho Cucamonga Warehouse Project.

Attachments: Attachment 1: Location Map Attachment II: Water Supply Assessment for the Bridge Point Rancho Cucamonga Warehouse Project Attachment III: Resolution No. 2021-1-4

Submitted By: Eduardo Espinoza, PE, Director of Engineering Services Prepared By: Gidti Ludesirishoti, PE, Associate Engineer

Attachment 1 Chino Basin Judgment

DONALD D. STARK A Professional Corporation 'IH .J~H 30 Ali,i 41 I .~. 2 Suite 201 Airport Plaza 2061 Business Center Drive ~{fr 3 Irvine, California 92715 ."."/ : Telephone: (714) 752-8971 4 Wut. CLAYSON, ROTHROCK & ~~N FILED· 5 601 South Main Street San Stlnafdina l! Corona, California 91720 /'2' 6 Telephone: (714) 737-1910 OCT4B 1989 1. • 7 Attorneys for Plaintiff ~~0~~ 8 9 SUPERIOR' COURT OP THE STATE OF CALIFORNIA

10 POR THE COUNTY OF SA~ 11

12 CHINO BASIN MUNICIPAL WATER ) DISTRICT, ) ) Plaintiff, ) No. lfi4327 ) v. ) ) CITY OF CHINO, et al. ) ) Defendants. ) ------)

cTUDG~NT

28 1 JUDGHENT TABLE OF CONTENTS 2 3 I. INTRODUCTION . . . 1 4 1. Pleadings, Parties and Jurisdiction 1 5 2. Stipulation for Judgment .... 2

6 3. Trial; Findings and Conclusions 2 7 4. Definitions 2

8 5. Exhibits .. 5

9 II. DECLARATION OF RIGHTS 6

10 A. HYDROLOGY 6

11 6. Safe Yield 6 12 7. Overdraft and Prescriptive Circumstances 6

B. WATER RIGHTS IN SAFE YIELD 6

8. Overlying Rights 6

9. Appropriative Rights 7

10. Rights of the State of California 8

17 C. RIGHTS TO AVAILABLE GROUND WATER STORAGE CAPACITY 8

18 11. Available Ground Water Storage capacity. 8

19 12. Utilization of Available Ground Water

20 Capacity 8

21 III. INJUNCTION . 9 22 13. Injunction Against Unauthorized Production

23 of Basin Water ...... 9

24 14. Injunction Against Unauthorized Storage or

25 Withdrawal of Stored Water 10

26 IV. CONTINUING JURISDICTION 10

27 15. continuing Jurisdiction 10

28 V. WATERMASTER ...... 12

i. 1 Page 2 A. APPOINTMENT · · · · · . 12 5 16. Watermaster Appointment 12 4 B. POWERS AND DUTIES 12 5 17. Powers and Duties 12

6 18. Rules and Regulations 12

7 19. Acquisition of Facilities 13

8 20. Employment of Experts and Agents 13

9 21- Measuring Devices 13 10 22. Assessments · 14 11 23. Investment of Funds 14

12 24. BorrOldng 14 z -., 0 >- ~ ~ ~ ~ 13 25. Contracts 14 ..: mf- ~ .-~~:;; ~(J) 8 0 eZ "i 14 11.. (II ~ til 26. Cooperation with Other Agencies 14 II. Q ..I ~ III 11. 10 °C~_::lJ'" :J":"~.J 2 ~ .u_z < ~ 15 27. Studies ...... 14 Z lit :;).,.. · · · · · o ~ "~- 16 ere iO> 28. Ground Water Storage Agreements 15 .( ge: 17 29. Accounting for Stored Water . 15

18 30. Annual Administrative Budget. 15 19 31- Review Procedures · · 16 20 C. ADVISORY AND POOL CO~~ITTEES 17 21 32. Authorization · · · 17 22 33. Term and Vacancies 18

25 34. Voting Power 18 24 35. Quorum . . · 18 25 36. Compensation 19

26 37. Organization 19

27 38. Powers and Functions 21

28 VI. PHYSICAL SOLUTION ...... 23

ii. "

1 2 A. GENERAL...... 23 3 39. Purpose and Objective 23 4 40. Need for Flexibility 23 5 41. Watermaster control 23

6 42. General Pattern of Operations 24

7 B. POOLING . . • 24 8 43. Multiple Pools Established 24 9 44. Determination and Allocation of Rights to 10 Safe Yield of Chino Basin 25 11 45. Annual Replenishment. 25 12 46. Initial Pooling PLans 26

C. REPORTS AND ACCOUNTING 26 47. Production Reports 26

48. Watermaster Reports and Accounting 26

D. REPLENISHMENT ...... 27 17 49. Sources of Supplemental Water 27

18 50. Methods of Replenishment 28

19 E. REVENUES ...... 28

20 51. Production Assessment 28

21 52. Minimal Producers 28:

22 53. Assessment Proceeds -- Purposes 28

23 54. Administrative Expenses 29

24 55. Assessments -- Procedure 29

25 56. Accumulation of Replenishment Water

26 Assessment Proceeds 30

27 57. Effective Date ..... 30

28 VII. MISCELLANEOUS PROVISIONS ...... 31

iii. 1

2 58. Designation of Address for Notice and 3 Service 31 4 59. Service of Documents 31 5 60. Intervention After Judgment 32

6 6l. Loss of Rights 32

7 62. Scope of Judgment 32

8 63. Judgment Binding on Successors 32 9 64. Costs . . . . . 33

10 EXHIBIT nAil Location Map of Chino Basin 34 11 EXHIBIT "Btl Hydrologic Map of Chino Basin 35

12 EXHIBIT nett Parties With Overlying Agricultural Rights 36

EXHIBIT liD" Parties With Overlying Non-Agricultural Rights . 60

EXHIBIT nEIt Appropriative Rights 61

EXHIBIT "F" Overlying Agricultural Pooling Plan 62 17 EXHIBIT "G" Overlying Non-Agricultural Pooling Plan 65 18 EXHIBIT "H" Appropriative pooling Plan 68

19 EXHIBIT "I" Engineering Appendix 79

20 EXHIBIT "J" Map of In Lieu Area No. 1 82 21 EXHIBIT "K" Legal Description of Chino Basin 83 22 23 24 25 26 27 28

iv. 1 DONALD D. STARK A Professional Corporation 2 Suite 201 Airport Plaza 2061 Business Center Drive 3 Irvine, California 92715 Telephone: (714) 752-8971 4 CLAYSON, ROTHROCK & MANN 5 601 South Main Street Corona, California 91720 6 Telephone: (714) 737-1910

7 Attorneys for Plaintiff 8

9 SUPERIOR COURT OF THE STATE OF CALIFORNIA

10 FOR THE COUNTY OF SAN BERNARDINO 11

12 CHINO BASIN MUNICIPAL WATER ) DISTRICT, ) ) Plaintiff, ) :10. 164327 ) v. ) .TUDm'IENT ) CITY OF CHINO, et al. ) ) Defendants. ) 17 ------) 18

19 I. INTRODUCTION

20 1. Pleadings, Parties and Jurisdiction. The complaint here-

21 in was filed on January 2, 1975, seeking an adjudication of. water

22 rights, injunctive relief and the imposition of a physical solu-

23 tion. A first amended complaint was filed on July 16, 1976. The

24 defaults of certain defendants have been entered, and certain

25 other defendants dismissed. Other than defendants who have been

26 dismissed or whose defaults have been entered, all defendants have

27 appeared herein. By answers and order of this Court, the issues

28 have been made those of a full inter se adjudication hetween the 1 parties. This court has jurisdiction of the subject matter of

2 this action and of the parties herein.

3 2. Stipulation For Judgment. Stipulation for entry of 4 judgment has been filed by and on behalf of a majority of the

5 parties, representing a majority of the quantitative rights herein

6 adjudicated.

7 3. Trial; Findings and Conclusions. Trial was commenced on

8 December 16, 1977, as to the non-stipulating parties, and findings

9 of fact and conclusions of law have been entered disposing of the

10 issues in the case.

11 4. Definitions. As used in this Judgment, the following

12 terms shall have the meanings herein set forth: z ... o l:': ... :11! j:: n::'" 0: < c ~ - 13 (a) Active Parties. All parties other than those who J9~ .~ .~:!l> !:!Ulgo;z,?I&. .UNufl:« 14 have filed with Watermaster a written waiver of service of b.Q'"'lIIlD~1f) °c~t:::l;jf'o ~.J g 0 z < ~ 15 notices, pursuant to Paragraph 58. ~<:U)iiU! Zo ~ .~iJt: 16 c g ~~ (b) Annual or Year -- A fiscal year, July 1 through • 0 > < N~ 17 June 30, following, unless the context shall clearly indicate

18 a contrary meaning.

19 (c) Appropriative Right -- The annual production right

20 of a producer from the Chino Basin other than pursuant to an

21 overlying right.

22 (d) Basin Water -- Ground water within Chino Basin which

23 is part of the Safe Yield, Operating Safe Yield, or rep len-

24 ishment water in the Basin as a result of operations under the

25 Physical Solution decreed herein. Said term does not include

26 Stored Water.

27 (e) CBMWD -- Plaintiff Chino Basin Municipal Water

28 District.

-2- 1 (f) Chino Basin or Basin -- The ground water basin 2 underlying the area shown as such on Exhibit "B" and within 3 the boundaries described in Exhibit "K". 4 (g) Chino Basin Watershed -- The surface drainage area 5 tributary to and overlying Chino Basin. 6 (h) Ground Water -- \vater beneath the surface of the 7 ground and within the zone of saturation, i.e., below the 8 existing water table. 9 (i) Ground Water Basin -- An area underlain by one or 10 more permeable formations capable of furnishing substantial 11 water storage. 12 z (j) Minimal Producer -- Any producer whose production 0 ~--" ::.:: - II: r-. a:~ eN"- 13 does not exceed five acre-feet per year • :a~ ~ .~:!:;; ~ til ~ 0 i5 Z G! 14 "" . u CII u ~ t>I (k) MWD The Metropolitan Water District of Southern b.O.J~m""lO 0Q~_:::::ir-. l: oJ 2 0 z < - 15 S-t:tO iiU :! California. z ~ ::l.r-. o IDW ..... g 16 c • 0>iD~ (l) Operating Safe Yield -- The annual amount of ground 0( CII!5 17 water which Watermaster shall determine, pursuant to criteria 18 specified in Exhibit "I", can be produced from Chino Basin by 19 the Appropriative Pool parties free of replenishment obliga- 20 tion under the Physical Solution herein. 21 (m) Overdraft -- A condition wherein the total annual 22 production from the Basin exceeds the Safe Yield thereof. 23 (n) Overlying Right -- The appurtenant right of an owner 24 of lands overlying Chino Basin to produce water from the Basi 25 for overlying beneficial use on such lands. 26 (o) Person. Any individual, partnership, association, 27 corporation, governmental entity or agency, or other organ- 28 ization.

-3- 1 (p) PVMWD -- Defendant Pomona Valley Municipal Water

2 District.

3 (q) Produce or Produced -- To pump or extract ground

4 water from Chino Basin.

5 (r) Producer -- Any person who produces water from Chino

6 Basin.

7 (s) Production -- Annual quantity, stated in acre feet,

8 of water produced.

9 (t) Public Hearing -- A hearing after notice to all

10 parties and to any other person legally entitled to notice.

11 (u) Reclaimed Water -- Water which, as a result of

12 processing of waste water, is suitable for a controlled use.

(v) Replenishment Water -- Supplemental water used to

recharge the Basin pursuant to the Physical Solution, either

directly by percolating the water into the Basin or indirectly

by delivering the water for use in lieu of production and use

17 of safe yield or Operating Safe Yield.

18 (w) Responsible Party -- The owner, co-owner, lessee or

19 other person designated by multiple parties interested in a

20 well as the person responsible for purposes of filing reports

21 hereunder.

22 (x) Safe Yield -- The long-term average annual quantity

23 of ground water (excluding replenishment or stored water but

24 including return flow to the Basin from use of replenishment

25 or stored water) which can be produced from the Basin under

26 cultural conditions of a particular year without causing an

27 undesirable result.

28 (y) SBVMWD -- San Bernardino Valley Municipal Water

-4- 1 District.

2 (z) State Water -- Supplemental Water imported through 3 the State Water Resources Development System, pursuant to 4 Chapter 8, Division 6, Part 6 of the Water Code. 5 (aa) Stored Water -- Supplemental water held in storage, 6 as a result of direct spreading, in lieu delivery, or other-

7 wise, for subsequent withdrawal and use pursuant to agreement

8 with Watermaster.

9 (bb) Supplemental Water -- Includes both water imported 10 to Chino Basin from outside Chino Basin Watershed, and re-

11 claimed water. 12 (cc) WMWD -- Defendant Western Municipal l.;rater District

of Riverside County. 5. List of Exhibits. The following exhibits are attached to

this Judgment and made a' part hereof: "A" -- "Location Map of Chino Basin" showing boundaries

17 of Chino Basin Municipal Water District, and other geographic

18 and political features. 19 "B" "Hydrologic Map of Chino Basin" showing hydrologic

20 features of Chino Basin. 21 "c" Table Showing Parties in Overlying (Agricultural)

22 Pool. 23 "D" -- Table Showing Parties in Overlying {Non-

24 agricultural Pool and Their Rights.

25 liEn Table Showing Appropriators and Their Rights.

26 "F" Overlying (Agricultural) Pool pooling Plan.

27 1IG" Overlying (Non-agricultural) Pool pooling Plan.

28 ttH" Appropriative Pool pooling Plan.

-5- 1 "I" Engineering Appendix.

2 lIJ" Map of In Lieu Area No.1. 3 UK" Legal Description of Chino Basin. 4 5 II. DECLARATION OF RIGHTS

6 A. HYDROLOGY

7 6. Safe Yield. The Safe Yield of Chino Basin is 140,000 acre

8 feet per year.

9 7. Overdraft and Prescriptive Circumstances. In each year

10 for a period in excess of five years prior to filing of the First

11 Amended Complaint herein, the Safe Yield of the Basin has been

12 exceeded by the annual production therefrom, and Chino Basin is and ~~ ~~ 0: ~ ~ ~ _ 13 has been for more than five years in a continuous state of over- m~~ ~~\; u UI "- z Z ~ .8g~~~= 14 draft. The production constituting said overdraft has been open, b.O.JWIllb. 1O °c~t:::;j"" ~~~5~~115 notorious, continuous, adverse, hostile and under claim of right . ...Iz lO :::1_" O~Dl~-16 Of ~> The circumstances of said overdraft have given notice to all < gs 17 parties of the adverse nature of such aggregate over-production.

18 B. WATER RIGHTS IN SAFE YIELD

19 8. Overlying Rights. The parties listed in Exhibits "c" and

20 "D" are the owners or in possession of lands which overlie Chino

21 Basin. As such, said parties have exercised overlying water

22 rights in Chino Basin. All overlying rights owned or exercised by

23 parties listed in Exhibits "c" and "D" have, in the aggregate, been

24 limited by prescription except to the extent such rights have been

25 preserved by self-help by said parties. Aggregate preserved

26 overlying rights in the Safe Yield for agricultural pool use,

27 including the rights of the State of California, total 82,800 acre

28 feet per year. Overlying rights for non-agricultural pool use

-6- 'j,

1 total 7,366 acre feet per year and are individually decreed for 2 each affected party in Exhibit "D". No portion of the Safe Yield 3 of Chino Basin exists to satisfy unexercised overlying rights, and 4 such rights have all been lost by prescription. However, uses may 5 be made of Basin Water on overlying lands which have no preserved 6 overlying rights pursuant to the Physical Solution herein. All 7 overlying rights are appurtenant to the land and cannot be assigned 8 or conveyed separate or apart therefrom. 9 9. Appropriative Rights. The parties listed in Exhibit "E" 10 are the owners of appropriative rights, including rights by pres- 11 cription, in the unadjusted amounts therein set forth, and by 12 reason thereof are entitled under the Physical Solution to share in the remaining Safe Yield, after satisfaction of overlying rights and rights of the State of·California, and in the Operating Safe Yield in Chino Basin, in the annual shares set forth in Exhibit

liEn.

17 (a) Loss of Priorities. By reason of the long continued 18 overdraft in Chino Basin, and in light of the complexity of 19 determining appropriative priorities and the need for con- 20 serving and making maximum beneficial use of the water re- 21 sources of the State, each and all of the parties listed in 22 Exhibit "E" are estopped and barred from asserting special 23 priorities or preferences, inter~. All of said appropri- 24 ative rights are accordingly deemed and considered of equal 25 priority. 26 (b) Nature and Quantity. All rights listed in Exhibit 27 "En are appropriative and prescriptive in nature. By reason 28 of the status of the parties, and the provisions of Section

-7- 1 1007 of the Civil Code, said rights are immune from reduction

2 or limitation by prescription.

3 10. Rights of the State of California. The State of

4 California, by and through its Department of corrections, Youth

5 Authority and Department of Fish and Game, is a significant pro-

6 ducer of ground water from and the State is the largest owner of

7 land overlying Chino Basin. The precise nature and scope of the

8 claims and rights of the State need not be, and are not, defined

9 herein. The State, through said departments, has accepted the

10 Physical Solution herein decreed, in the interests of implementing

11 the mandate of Section 2 of Article X of the California Constitu-

12 tion. For all purposes of this Judgment, all future production by

the State or its departments or agencies for overlying use on

State-owned lands shall be considered as agricultural pool use.

C. RIGHTS TO AVArLABLE GROUND WATER STORAGE CAPACITY

11. Available Ground Water Storage Capacity. There exists in

17 Chino Basin a substantial amount of available ground water storage

18 capacity which is not utilized for storage or regulation of Basin

19 Waters. Said reservoir capacity can appropriately be utilized for

20 storage and conjunctive use of supplemental water with Basin

21 Waters. It is essential that said reservoir capacity utilization

22 for storage and conjunctive use of supplemental water be undertaken

23 only under Watermaster control and regulation, in order to protect

24 the integrity of both such Stored Water and Basin Water in storage

25 and the Safe Yield of Chino Basin.

26 12. utilization of Available Ground Water Capacity. Any

27 person or public entity, whether a party to this action or not, may

28 make reasonable beneficial use of the available ground water

-8- 1 storage capacity of Chino Basin for storage of supplemental water;

2 provided that no such use shall be made except pursuant to written

3 agreement with Watermaster, as authorized by Paragraph 28. In the

4 allocation of such storage capacity, the needs and requirements of

5 lands overlying Chino Basin and the owners of rights in the Safe

6 Yield or Operating Safe Yield of the Basin shall have priority and

7 preference over storage for export.

8

9 III. INJUNCTION

10 13. Injunction Against Unauthorized Production of Basin

11 Water. Each party in each of the respective pools is enjoined, as

12 follows:

(a) Overlying (Agricultural) Pool. Each party in the

Overlying (Agricultural) Pool, its officers, agents, employees

successors and assigns, is and they each are ENJOINED AND

PESTRAINED from producing ground water from Chino Basin in any

17 year hereafter in excess of such party's correlative share of

18 the aggregate of 82,800 acre feet allocated to said Pool,

19 except pursuant to the Physical Solution or a storage water

20 agreement.

21 (b) Overlying (Non-Agricultural) Pool. Each party in

22 the Overlying (Non-agricultural) Pool, its officers, agents,

23 employees, successors and assigns, is and they each are

24 ENJOINED AND RESTRAINED from producing ground water of Chino

25 Basin in any year hereafter in excess of such party's decreed

26 rights in the Safe Yield, except pursuant to the provisions of

27 the Physical Solution or a storage water agreement.

28 (c) Appropriative Pool. Each party in the

-9- 1 Appropriative Pool, its officers, agents, employees, successor 2 and assigns, is and they are each ENJOINED AND RESTRAINED from 3 producing ground water of Chino Basin in any year hereafter in 4 excess of such party's decreed share of Operating Safe Yield, 5 except pursuant to the provisions of the Physical Solution or 6 a storage water agreement. 7 14. Injunction Against Unauthorized Storage or Withdrawal 8 of Stored Water. Each party, its officers, agents, employees,

9 successors and assigns is and they each are ENJOINED ~~D RESTRAINED 10 from storing supplemental water in Chino Basin for withdrawal, or 11 causing withdrawal of, water stored by that party, except pursuant 12 to the terms of a written agreement with Watermaster and in accordance with Watermaster regulations. Any supplemental water stored or recharged in the Basin, except pursuant to such a ltiater- master agreement, shall 'be deemed abandoned and not classified as Stored Hater. This paragraph has no application, as such, to 17 supplemental water spread or provided in lieu by l'1atermaster pur- 18 suant to the Physical Solution. 19 20 IV. CONTINUING JURISDICTION 21 15. Continuing Jurisdiction. Full jurisdiction, power and 22 authority are retained and reserved to the Court as to all matters 23 contained in this judgment, except:

24 (a) The redetermination of Safe Yield, as set forth in 25 Paragraph 6, during the first ten (10) years of operation of 26 the Physical Solution1 27 (b) The allocation of Safe Yield as between the several 28 pools as set forth in Paragraph 44 of the Physical Solution1

-10- 1 (c) The determination of specific quantitative rights 2 and shares in the declared Safe Yield or Operating Safe Yield 3 herein declared in Exhibits "0" and "E"; and 4 (d) The amendment or modification of Paragraphs 7(a) and 5 (b) of Exhibit "H", during the first ten (10) years of oper­ 6 ation of the Physical Solution, and thereafter only upon 7 affirmative recommendation of at least 67% of the voting power 8 (determined pursuant to the formula described in Paragraph 3 9 of Exhibit "H"), but not less than one-third of the members 10 of the Appropriative Pool Committee representatives of parties

11 who produce water within CBMWO or liMWD; after said tenth year 12 the formula set forth in said Paragraph 7(a) and 7(b) of Exhibit "H" for payment of the costs of replenishment water

may be changed to lOO~ gross or net, or any percentage split thereof, but only in response to recommendation to the Court by affirmative vote of at least 67% of said voting power of 17 the Appropriative Pool representatives of parties who produce

18 ground water within CB}~qO or WMWD, but not less than one-third 19 of their number. In such event, the Court shall act in con- 20 formance with such recommendation unless there are compelling 21 reasons to the contrary; and provided, further, that the fact 22 that the allocation of Safe Yield or Operating Safe Yield 23 shares may be rendered moot by a recommended change in the 24 formula for replenishment assessments shall not be deemed to 25 be such a "compelling reason." 26 Said continuing jurisdiction is provided for the purpose of en- 27 abling the Court, upon application of any party, the Watermaster, 28 the Advisory Committee or any Pool Committee, by motion and, upon

-11- 1 at least 30 days' notice thereof, and after hearing thereon, to

2 make such further or supplemental orders or directions as may be

3 necessary or appropriate for interpretation, enforcement or carry-

4 ing out of this Judgment, and to modify, amend or amplify any of

5 the provisions of this Judgment.

6

7 V. WATERMASTER

8 A. APPOINTMENT

9 16. Watermaster Appointment. CBMWD, acting by and through a

10 majority of its board of directors, is hereby appointed Water-

11 master, to administer and enforce the provisions of this Judgment

12 and any subsequent instructions or orders of the Court hereunder. z .J> o ~;:: ~S ~:::_13 The term of appointment of Watermaster shall be for five (5) years. m~~ ~:!~ ~~8g~~~14 The Court will by subsequent orders provide for successive terms or tl.C.JIdIt~1O °O~!:~J'" :=:l~~~~~~ 15 for a successor Watermaster. Watermaster may be changed at any z D ::I.r-. o ~ m .. - 16 c g ~~ time by subsequent order of the Court, on its own motion, or on the • 0 > .( ",$ 17 motion of any party after notice and hearing. Unless there are

18 compelling reasons to the contrary, the Court shall act in con-

19 formance with a motion requesting the Waterrnaster be changed if

20 such motion is supported by a majority of the voting power of the

21 Advisory Committee.

22 B. POWERS AND DUTIES

23 17. Powers and Duties. Subject to the continuing supervisio

24 and control of the Court, Watermaster shall have and may exercise

25 the express powers, and shall perform the duties, as provided in

26 this Judgment or hereafter ordered or authorized by the Court in

27 the exercise of the Court's continuing jurisdiction.

28 18. Rules and Regulations. Upon recommendation by the

-12- 1 Advisory Committee, Watermaster shall make and adopt, after public

2 hearing, appropriate rules and regulations for conduct of Water-

3 master affairs, including meeting sChedules and procedures, and

4 compensation of members of Waterrnaster at not to exceed $25 per

5 member per meeting, or $300 per member per year, whichever is less,

6 plus reasonable expenses related to activities within the Basin.

7 Thereafter, Natermaster may amend said rules from time to time upon

8 recommendation, or with approval of the Advisory Committee after

9 hearing noticed to all active parties. .A copy of said rules and

10 regulations, and of any amendments thereof, shall be mailed to each

11 active party.

12 19. Acquisition of Facilities. Naterrnaster may purchase, .o .::: "... ~~ ~~_13 lease, acquire and hold all necessary facilities and equipment;· ~~2 ~~i> ~ ~ 8g I} ~ ~ 14 provided, that it is not the intent of the Court that Naterrnaster b.Q.JIIIOIJ." °o~!:=::; .... i=.J g" < - 15 acquire any interest in .real property or substantial capital '" g$ 17 20. Employment of Experts and Agents. Watermaster may

18 employ or retain such administrative, engineering, geologic,

19 accounting, legal or other specialized personnel and consultants as

20 may be deemed appropriate in the carrying out of its powers and

21 shall require appropriate bonds from all officers and employees

22 handling Waterrnaster funds. Watermaster shall maintain records for

23 purposes of allocation of costs of such services as well as of all

24 other expenses of Watermaster administration as between the several

25 pools established by the Physical Solution.

26 21. Measuring Devices. Hatermaster shall cause parties,

27 pursuant to uniform rules, to install and maintain in good opera-

28 ting condition, at the cost of each party, such necessary measuring

-l3- 1 devices or meters as \\Tatermaster may deem appropriate. Such 2 measuring devices shall be inspected and tested as deemed necessary 3 by Watermaster, and the cost thereof shall constitute an expense of 4 Watermaster. 5 22. Assessments. Watermaster is empowered to levy and

6 collect all assessments provided for in the pooling plans and

7 Physical Solution.

8 23. Investment of Funds. Watermaster may hold and invest any

9 and all Watermaster funds in investments authorized from time to

10 time for public agencies of the State of California.

11 24. Borrowing. Watermaster may borrow from time to time

12 amounts not exceeding the annual anticipated receipts of Water- .J) •0 ~- ~ ~ 1l ~ 13 master during such year. 0( .- wco~~ I!!<'"- ~ ~cn 0 0 ~ z iii! 14 II. .U tlll1 ik:« 25. Contracts. Watermaster may enter into contracts for the lL,c,.Jf!II!I~" °C~_CJf'o 9 •• < - 15 .,.J:l<:gI1J;u:! performance of any powers herein granted, provided, however, that ~ oz IUlII•. ...." c g -g: 16 • "> Watermaster may not contract with or purchase materials, supplies < 2$ 17 or services from CB~~D, except upon the prior recommendation and

18 approval of the Advisory Committee and pursuant to written order of

19 the Court.

20 26. Cooperation With Other Agencies. Subject to prior

21 recommendation or approval of the Advisory Committee, Watermaster

22 may act jOintly or cooperate with agencies of the united States and

23 the State of California or any political subdivisions, munici-

24 palities or districts or any person to the end that the purpose of

25 the Physical Solution may be fully and economically carried out.

26 27. Studies. Watermaster may, with concurrence of the

27 Advisory Committee or affected Pool Committee and in accordance

28 with paragraph 54(b), undertake relevant studies of hydrologic

-14- 1 conditions, both quantitative and qualitative, and operating

2 aspects of implementation of the management program for Chino

3 Basin.

4 28. Ground Water Storage Agreements. Watermaster shall

5 adopt, with the approval of the Advisory Committee, uniformly

6 applicable rules and a standard form of agreement for storage of

7 supplemental water, pursuant to criteria therefor set forth in

8 Exhibit" I". Upon appropriate application by any person, Water-

9 master shall enter into such a storage agreement; provided that all

10 such storage agreements shall first be approved by written order of

11 the Court, and shall by their terms preclude operations which will

12 have a substantial adverse impact on other producers.

29. Accounting for Stored Water. Watermaster shall calculate

additions, extractions and losses and maintain an annual account of

all Stored Water in Chino Basin, and any losses of water supplies

or Safe Yield of Chino Basin resulting from such Stored tolater.

30. Annual Administrative Budget. Watermaster shall submit

18 to Advisory Committee an administrative budget and recommendation

19 for each fiscal year on or before March 1. The Advisory Committee

20 shall review and submit said budget and their recommendations to

21 Watermaster on or before April 1, following. Watermaster shall

22 hold a public hearing on said budget at its April quarterly meetin.

23 and adopt the annual administrative budget which shall include the

24 administrative items for each pool committee. The administrative

25 budget shall set forth budgeted items in sufficient detail as

26 necessary to make a proper allocation of the expense among the

27 several pools, together with Watermaster's proposed allocation.

28 The budget shall contain such additional comparative information

-15- 1 or explanation as the Advisory Committee may recommend from time

2 to time. Expenditures within budgeted items may thereafter be

3 made by Watermaster in the exercise of powers herein granted, as a

4 matter of course. Any budget transfer in excess of 20% of a

5 budget category during any budget year or modification of such

6 administrative budget during any year shall be first submitted to

7 the Advisory Committee for review and recommendation.

8 31. Review Procedures. All actions, decisions or rules of

9 Watermaster shall be subject to review by the Court on its own

10 motion or on timely motion by any party, the Watermaster (in the

11 case of a mandated action), the Advisory Committee, or any Pool

12 Committee, as follows:

(a) Effective Date of Watermaster Action. Any action,

decision or rule of Watermaster shall be deemed to have

occurred or bee~ enacted on the date on which written

notice thereof is mailed. Mailing of copies of approved

17 Watermaster minutes to the active parties shall constitute

18 such notice to all parties.

19 (bl Noticed Motion. Any party, the Watermaster (as

20 to any mandated action), the Advisory Committee, or any

21 Pool Committee may, by a regularly noticed motion, apply 22 to the Court for review of any watermaster's action, 23 decision or rule. Notice of such motion shall be served

24 personally or mailed to Watermaster and to all active

25 parties. Unless otherwise ordered by the Court, such

26 motion shall not operate to stay the effect of such 27 Watermaster action, decision or rule. 28

-16- 1 (c) Time for Motion. Notice of motion to review any 2 Watermaster action, decision or rule shall be served and filed 3 within ninety (90) days after such Watermaster action, de- 4 cision or rule, except for budget actions, in which event said 5 notice period shall be sixty (60) days. 6 (d) De Novo Nature of Proceedings. Upon the filing of 7 any such motion, the Court shall require the moving party to 8 notify the active parties, the Watermaster, the Advisory 9 Committee and each Pool Committee, of a date for taking 10 evidence and argument, and on the date so designated shall 11 review de novo the question at issue. Watermaster's findings 12 or decision, if any, may be received in evidence at said % 0 ~~-.. ::.:: - It f'o ~ QN 13 hearing, but shall not constitute presumptive or prima facie II: ~ ." ~ !l!~ ~ ~:!:;; ytn ~ (; ~ z iii' 14 proof of any fact in issue. 11. • U N U ~ C\I b.Q.J}:!ft1l.1D °O~_=J"" (e) Decision.. The decision of the Court in such proceed S:..J2'%<-15«::CD;U:! .Jz le itJt': g g ;;; 1: 16 ing shall be an appealable supplemental order in this case . • 0> '" N$ 17 When the same is final, it shall be binding upon the Water- 18 master and all parties.

19 C. ADVISORY AND POOL CO~~ITTEES

20 32. Authorization. lvatermaster is authorized and directed to

21 cause committees of producer representatives to be organized to

22 act as Pool Committees for each of the several pools created under

23 the Physical Solution. Said Pool Committees shall, in turn,

24 jointly form an Advisory Committee to assist watermaster in per-

25 formance of its functions under this judgment. Pool Committees

26 shall be composed as specified in the respective pooling plans, and

27 the Advisory Committee shall be composed of not to exceed ten (10)

28 voting representatives from each pool, as designated by the

-17- 1 respective Pool Committee. WMWD, PVMWD and SBVMWD shall each be

2 entitled to one non-voting representative on said Advisory Com-

3 mittee.

4 33. Term and Vacancies. Hembers of any Pool Committee, shall 5 serve for the term, and vacancies shall be filled, as specified in

6 the respective pooling plan. Members of the Advisory Committee

7 shall serve at the will of their respective Pool Committee.

8 34. Voting Power. The voting power on each Pool Committee

9 shall be allocated as provided in the respective pooling plan. The

10 voting power on the Advisory Committee shall be one hundred (100)

11 votes allocated among the three pools in proportion to the total

12 assessments paid to Watermaster during the preceding year; pro-

vided, that the minimum voting power of each pool shall be

(a) Overlying (Agricultural) Pool 20,

(b) Overlying (Non-agricultural) PoolS, and

(c) Appropriative Pool 20.

In the event any pool is reduced to its said minimum vote, the re-

maining votes shall be allocated between the remaining pools on

said basis of assessments paid to Watermaster by each such remain-

20 ing pool during the preceding year. The method of exercise of

21 each pool's voting power on the Advisory Committee shall be as

22 determined by the respective pool committees.

23 35. Quorum. A majority of the voting power of the Advisory

24 Committee or any Pool Committee shall constitute a quorum for the

25 transaction of affairs of such Advisory or Pool Committee; pro-

26 vided, that at least one representative of each Pool Committee

27 shall be required to constitute a quorum of the Advisory Committee.

28 No Pool Committee representative may purposely absent himself or

-18- 1 herself, without good cause, from an Advisory committee meeting to

2 deprive it of a quorum. Action by affirmative vote of a majority

3 of the entire voting power of any Pool Committee or the Advisory

4 Committee shall constitute action by such committee. Any action or

5 recommendation of a Pool Committee or the Advisory Committee shall

6 be transmitted to Watermaster in writing, together with a report of

7 any dissenting vote or opinion.

8 36. Compensation. Pool or Advisory Committee members may

9 receive compensation, to be established by the respective pooling

10 plan, but not to exceed twenty-five dollars ($25.00) for each

11 meeting of such Pool or Advisory Committee attended, and provided

12 that no member of a Pool or Advisory Committee shall receive ~ ~!! :x:;: i,.. n:~ c:;l 13 compensation of more than three hundred ($300.00) dollars for ~~ ~ ~ ~ ~ ~~8g5~%14 service on any such committee during anyone year. All such com- tl.C oJ III 11'1 ~m °o~ .. CQ-r. ;:.J«:ClJ g 5 iDU~~~:! 15 pensation shall be a par.t of Watermaster administrative expense. ..I Z ~ :I.,.. No member of any Pool or Advisory Committee shall be employed by gg• 0>~~~16 C N!!: 17 Watermaster or compensated by Watermaster for professional or other

18 services rendered to such Pool or Advisory Committee or to Water-

19 master, other than the fee for attendance at meetings herein

20 provided, plus reimbursement of reasonable expenses related to

21 activities within the Basin.

22 37. Organization.

23 (a) Organizational Meeting. At its first meeting in

24 each year, each Pool Committee and the Advisory Committee

25 shall elect a chairperson and a vice chairperson from its

26 membership. It shall also select a secretary, a treasurer

27 and such assistant secretaries and treasurers as may be

28 appropriate, any of whom may, but need not, be members of

-19- 1 such Pool or Advisory Committee. 2 (b) Regular Meetings. All Pool Committees and the 3 Advisory Committee shall hold regular meetings at a place and 4 time to be specified in the rules to be adopted by each Pool 5 and Advisory Committee. Notice of regular meetings of any 6 Pool or Advisory Committee, and of any change in time or 7 place thereof, shall be mailed to all active parties in said

8 pool or pools. 9 (c) Special Meetings. Special meetings of any Pool or 10 Advisory Committee may be called at any time by the Chair-

11 person or by any three (3) members of such Pool or Advisory

12 Committee by delivering notice personally or by mail to each

member of such Pool or Advisory Committee and to each active

party at least 24 hours before the time of each such meeting

in the case of personal delivery, and 96 hours in the case of

mail. The calling notice shall specify the time and place of

17 the special meeting and the business to be transacted. No

18 other business shall be considered at such meeting.

19 (d) Minutes. Minutes of all Pool committee, Advisory

20 Committee and Watermaster meetings shall be kept at Water-

21 master's offices. Copies thereof shall be mailed or otherwise

22 furnished to all active parties in the pool or pools con-

23 cerned. Said copies of minutes shall constitute notice of any

24 Pool or Advisory Committee action therein reported, and shall

25 be available for inspection by any party.

26 (e) Adjournments. Any meeting of any Pool or Advisory

27 Committee may be adjourned to a time and place specified in

28 the order of adjournment. Less than a quorum may so adjourn

-20- 1 from time to time. A copy of the order or notice of adjourn-

2 ment shall be conspicuously posted forthwith on or near the 3 door of the place where the meeting was held. 4 38. Powers and Functions. The powers and functions of the

5 respective Pool Committees and the Advisory Committee shall be as

6 follows:

7 (a) Pool Committees. Each Pool Committee shall have the

8 power and responsibility for developing policy recommendations

9 for administration of its particular pool, as created under

10 the Physical Solution. All actions and recommendations of any

11 Pool Committee which require Watermaster implementation shall

12 first be noticed to the other two pools. If no objection is

received in writing within thirty (30) days, such action or

recommendation shall be transmitted directly to Watermaster

for action. If any such objection is received, such action or

recommendation shall be reported to the Advisory Committee

17 before being transmitted to Watermaster.

18 (b) Advisory Committee. The Advisory Committee shall

19 have the duty to study, and the power to recommend, review

20 and act upon all discretionary determinations made or to be

21 made hereunder by Watermaster.

22 [1] Committee Initiative. When any recommendation

23 or advice of the Advisory Committee is received by

24 Watermaster, action consistent therewith may be taken by

25 Watermaster; provided, that any recommendation approved

26 by 80 votes or more in the Advisory Committee shall

27 constitute a mandate for action by Watermaster consisten

28 therewith. If Watermaster is unwilling or unable to act

-21- "

1 pursuant to recommendation or advice from the Advisory

2 committee (other than such mandatory recommendations), 3 Watermaster shall hold a public hearing, which shall be 4 followed by written findings and decision. Thereafter, 5 Watermaster may act in accordance with said decision, 6 whether consistent with or contrary to said Advisory 7 Committee recommendation. Such action shall be subject 8 to review by the Court, as in the case of all other

9 Watermaster determinations. 10 [2] Committee Review. In the event Watermaster II proposes to take any discretionary action, other than 12 approval or disapproval of a Pool Committee action or recommendation properly transmitted, or execute any agreement not theretofore within the scope of an Advisory Committee recommendation, notice of such intended action shall be served on the Advisory Committee and its members 17 at least thirty (30) days before the Watermaster meeting 18 at which such action is finally authorized. 19 (c) Review of Watermaster Actions. Watermaster (as to 20 mandated action), the Advisory Committee or any Pool Committe 21 shall be entitled to employ counsel and expert assistance in 22 the event Watermaster or such Pool or Advisory Committee seek 23 Court review of any Watermaster action or failure to act. Th 24 cost of such counsel and expert assistance shall be Water- 25 master expense to be allocated to the affected pool or pools. 26 27 28

-22- 1 VI. PHYSICAL SOLUTION 2 A. GENERAL 3 39. Purpose and Objective. Pursuant to the mandate of

4 Section 2 of Article X of the California Constitution, the Court

5 hereby adopts and orders the parties to comply with a Physical

6 Solution. The purpose of these provisions is to establish a legal

7 and practical means for making the maximum reasonable beneficial

8 use of the waters of Chino Basin by providing the optimum economic,

9 long-term, conjunctive utilization of surface waters, ground waters

10 and supplemental water, to meet the requirements of water users

11 having rights in or dependent upon Chino Basin.

12 40. Need for Flexibility. It is essential that this Physical •0 =!! ~ S ~L 13 Solution provide maximum flexibility and adaptability in order that !I~~ ~<" ~ tn 0 0 III z; 14 ta. • U N U" f\I Watermaster and the Court may be free to use existing and future ta.Q..I~.,~1) 0 < lit_roo 0 ~ ~ 15 ::.Jj to maximize beneficial use of the waters of Chino Basin. To that < CIIe! 17 end, the Court's retained jurisdiction will be utilized, where

18 appropriate, to supplement the discretion herein granted to the

19 Wastermaster.

20 41. Watermaster Control. Watermaster, with the advice of the

21 Advisory and Pool Committees, is granted discretionary powers in

22 order to develop an optimum basin management program for Chino

23 Basin, including both water quantity and quality considerations.

24 Withdrawals and supplemental water replenishment of Basin Water,

25 and the full utilization of the water resources of Chino Basin,

26 must be subject to procedures established by and administered

27 through Watermaster with the advice and assistance of the Advisory

28 and Pool Committees composed of the affected producers. Both the

-23- 1 quantity and quality of said water resources may thereby be pre-

2 served and the beneficial utilization of the Basin maximized.

42. General Pattern of Operations. It is contemplated that

4 the rights herein decreed will be divided into three (3) operating

5 pools for purposes of Watermaster administration. A fundamental

6 premise of the Physical Solution is that all water users dependent

7 upon Chino Basin will be allowed to pump sufficient waters from the

8 Basin to meet their requirements. To the extent that pumping

9 exceeds the share of the Safe Yield assigned to the Overlying

10 Pools, or the Operating Safe Yield in the case of the Appropriative

11 Pool, each pool will provide funds to enable Watermaster to replace

12 such overproduction. The method of assessment in each pool shall

be as set forth in the applicable pooling plan.

B; POOLING

43. Multiple Pools. Established. There are hereby established

three (3) pools for Watermaster administration of, and for the

17 allocation of responsibility for, and payment of, costs of re-

18 plenishment water and other aspects of this Physical Solution.

19 (a) Overlying (Agricultural) Pool. The first pool shall

20 consist of the State of california and all overlying producers

21 who produce water for other than industrial or commercial

22 purposes. The initial members of the pool are listed in

23 Exhibit "C".

24 (b) Overlying (Non-agricultural) Pool. The second pool

25 shall consist of overlying producers who produce water for

26 industrial or commercial purposes. The initial members of

27 this pool are listed in Exhibit "D".

28 (c) Appropriative Pool. A third and separate pool shall

-24- 1 consist of owners of appropriative rights. The initial 2 members of the pool are listed in Exhibit "E".

3 Any party who changes the character of his use may, by sub-

4 sequent order of the Court, be reassigned to the proper pool; but 5 the allocation of Safe Yield under Paragraph 44 hereof shall not b

6 changed. Any non-party producer or any person who may hereafter 7 commence production of water from Chino Basin, and who may become a

8 party to this physical solution by intervention, shall be assigned 9 to the proper pool by the order of the Court authorizing such 10 intervention. 11 44. Determination and Allocation of Rights to Safe Yield of 12 Chino Basin. The declared Safe Yield of Chino Basin is hereby

allocated as follows:

Pool Allocation

Overlying (Agricultural) Pool 414,000 acre feet in any five (5) consecutive years.

Overlying (Non-agricultural) 7,366 acre feet per year. Pool.

Appropriative Pool 49,834 acre feet per year. The foregoing acre foot allocations to the overlying pools are 20 fixed. Any subsequent change in the Safe Yield shall be debited or 21 credited to the Appropriative Pool. Basin Water available to the

22 Appropriative Pool without replenishment obligation may vary from 23 year to year as the Operating Safe Yield is determined by Water-

24 master pursuant to the criteria set forth in Exhibit "I". 25 45. Annual Replenishment. Watermaster shall levy and collec 26 assessments in each year, pursuant to the respective pooling plans,

27 in amounts sufficient to purchase replenishment water to replace 28 production by any pool during the preceding year which exceeds that

-25- II

1 pool's allocated share of Safe Yield in the case of the overlying 2 pools, or Operating Safe Yield in the case of the Appropriative

3 Pool. It is anticipated that supplemental water for replenishment 4 of Chino Basin may be available at different rates to the various

5 pools to meet their replenishment obligations. If such is the 6 case, each pool will be assessed only that amount necessary for the

7 cost of replenishment water to that pool, at the rate available to 8 the pool, to meet its replenishment obligation. 9 46. Initial Pooling Plans. The initial pooling plans, which 10 are hereby adopted, are set forth in Exhibits "F", "G" and "H",

11 respectively. unless and until modified by amendment of the 12 judgment pursuant to, the Court's continuing jurisdiction, each "a 0• ~~ ~ - 11:"" 0:: 5 ONc: m _ 13 such plan shall control operation of the subject pool. m;5~ ~<'" ~Ul ~ z z ill 14 ii: .82Ijo:~ C. REPORTS AND ACCOUNTING II.C,.l~\tI~1Q °C~_=J"" ;:.J g , Z < - 15 :i-t:gID;O:! 47. Production Reports. Each party or responsible party t5t! ffiwt c g ; ~ 16 • 0 > shall file periodically with Watermaster, pursuant to Watermaster < N!: 17 rules, a report on a form to be prescribed by Watermaster showing 18 the total production of such party during the preceding reportage 19 period, and such additional information as Watermaster may require,

20 including any information specified by the affected Pool Com-

21 mittee. 22 48. Watermaster Reports and Accounting. Watermaster's

23 annual report, which shall be filed on or before November 15 of 24 each year and shall apply to the preceding year's operation, shall

25 contain details as to operation of each of the pools and a certi-

25 fied audit of all assessments and expenditures pursuant to this 27 Physical Solution and a review of Watermaster activities. 28 ------

-26- 1 D. REPLENISHMENT 2 49. Sources of Supplemental Water. Supplemental water may be 3 obtained by Watermaster from any available source. !-7atermaster

4 shall seek to obtain the best available quality of supplemental

5 water at the most reasonable cost for recharge in the Basin. To

6 the extent that costs of replenishment water may vary between

7 pools, each pool shall be liable only for the costs attributable to

8 its required replenishment. Available sources may include, but are

9 not limited to:

10 (a) Reclaimed Water. There exist a series of agreements

11 generally denominated the Regional Waste Water Agreements

12 between CBMWD and owners of the major municipal sewer systems

within the basin. Under those agreements, which are recog-

nized hereby but shall be unaffected and unimpaired by this

judgment, sUbstantial quantities of reclaimed water may be

made available for replenishment purposes. There are addi-

tional sources of reclaimed water which are, or may become,

18 available to Watermaster for said purposes. Haximum benefi-

19 cial use of reclaimed water shall be given high priority by

20 Watermaster.

21 (b) State Water. State water constitutes a major

22 available supply of supplemental water. In the case of State

23 Water, Watermaster purchases shall comply with the water

24 service provisions of the State's water service contracts.

25 }lore specifically, Watermaster shall purchase State Water from

26 MWD for replenishment of excess production within CBMWD, WMWD

27 and PVMWD, and from SBVMWD to replenish excess production

28 within SBVMWD's boundaries in Chino Basin, except to the

-27- 1 extent that HWD and SBm!I:WD give their consent as required by 2 such State water service contracts. 3 (c) Local Import. There exist facilities and methods 4 for importation of surface and ground water supplies from 5 adjacent basins and watersheds.

6 (d) Colorado River Supplies. MWD has water supplies

7 available from its Colorado River Aqueduct.

8 50. Methods of Replenishment. Watermaster may accomplish

9 replenishment of overproduction from the Basin by any reasonable

10 method, including:

11 (a) Spreading and percolation or Injection of water in

12 existing or new facilities, subject to the provisions of

Paragraphs 19, 25 and 26 hereof.

(b) In Lieu Procedures. Watermaster may make, or cause

to be made, deliveries of water for direct surface use, in

lieu of ground water production.

17 E. REVENUES

18 51. Production Assessment. Production assessments, on what-

19 ever basis, may be levied by Watermaster pursuant to the pooling

20 plan adopted for the applicable pool.

21 52. Hinimal Producers. Minimal Producers shall be exempted

22 from payment of production assessments, upon filing of production

23 reports as provided in Paragraph 47 of this Judgment, and payment

24 of an annual five dollar ($5.00) administrative fee as specified by

25 Watermaster rules.

26 53. Assessment Proceeds -- Purposes. Watermaster shall have

27 the power to levy assessments against the parties (other than

28 minimal pumpers) based upon production during the preceding period

-28- 1 of assessable production, whether quarterly, semi-annually or

2 annually, as may be determined most practical by Watermaster or the

3 affected Pool Committee.

4 54. Administrative Expenses. The expenses of administration 5 of this Physical solution shall be categorized as either (a) gen-

6 eral Watermaster administrative expense, or (b) special project

7 expense.

8 (a) General Watermaster Administrative Expense shall 9 include office rental, general personnel expense, supplies and 10 office equipment, and related incidental expense and general 11 overhead. 12 (b) Special Project Expense shall consist of special

engineering, economic or other studies, litigation expense,

meter testing or other major operating expenses. Each such

project shall be assigned a Task Order number and shall be

separately budgeted and accounted for.

General Watermaster administrative expense shall be allocated

and assessed against the respective pools based upon allocations

made by the Watermaster, who shall make such allocations based upon

20 generally accepted cost accounting methods. Special Project

21 Expense shall be allocated to a specific pool, or any portion there

22 of, only upon the basis of prior express assent and finding of

23 benefit by the Pool Committee, or pursuant to written order of the

24 Court.

25 55. Assessments -- Procedure. Assessments herein provided

26 for shall be levied and collected as follows:

27 (a) Notice of Assessment. Watermaster shall give

28 written notice of all applicable assessments to each party on

-29- ii

1 or before ninety (90) days after the end of the production

2 period to which such assessment is applicable. 3 (b) payment. Each assessment shall be payable on or 4 before thirty (30) days after notice, and shall be the ob-

5, ligation of the party or successor owning the water production 61 facility at the time written notice of assessment is given, 7 unless prior arrangement for payment by others has been made

8 in writing and filed with Watermaster.

9 (c) Delinquency. Any delinquent assessment shall bear

10 interest at 10% per annum (or such greater rate as shall equal

11 the average current cost of borrowed funds to the Watermaster)

12 from the due date thereof. Such delinquent assessment and

interest may be collected in a show-cause proceeding herein

instituted by the Watermaster, in which case the Court may

allow Watermaster its reasonable costs of collection, includ-

ing attorney's fees.

17 56. Accumulation of Replenishment Water Assessment Proceeds.

18 In order to minimize fluctuation in assessment and to give Water-

19 master flexibility in purchase and spreading of replenishment

20 water, Ivatermaster may make reasonable accumulations of replen-

21 ishment water assessment proceeds. Interest earned on such re-

22 tained funds shall be added to the account of the pool from which

23 the funds were collected and shall be applied only to the purchase

24 of replenishment water.

25 57. Effective Date. The effective date for accounting and

26 operation under this Physical Solution shall be July 1, 1977, and

27 the first production assessments hereunder shall be due after July

28 1, 1978. Watermaster shall, however, require installation of

-30- 1 meters or measuring devices and establish operating procedures

2 immediately, and the costs of such Watermaster activity (not

3 including the cost of such meters and measuring devices) may be

4 recovered in the first administrative assessment in 1978. 5

6 VII. MISCELLANEOUS PROVISIONS

7 58. Designation of Address for Notice and Service. Each

8 party shall designate the name and address to be used for purposes

9 of all subsequent notices and service herein, either by its en-

10 dorsement on the Stipulation for Judgment or by a separate desig-

11 nation to be filed within thirty (30) days after Judgment has been

12 served. Said designation may be changed from time to time by

filing a written notice of such change with the Watermaster. Any

party desiring to be relieved of receiving notices of Watermaster

or committee activity may file a waiver of notice on a form to be

provided by Watermaster. Thereafter such party shall be removed

17 from the Active Party list. Watermaster shall maintain at all

18 times a current list of active p,arties and their addresses for

19 purposes of service. Watermaster shall also maintain a full

20 current list of names and addresses of all parties or their suc-

21 cessors, as filed herein. Copies of such lists shall be available,

22 without cost, to any party, the Advisory Committee or any Pool

23 Committee upon written request therefor.

24 59. Service of Documents. Delivery to or service upon any

25 party or active party by the Watermaster, by any other party, or by

26 the Court, of any item required to be served upon or delivered to

27 such party or active party under or pursuant to the Judgment shall

28 be made personally or by deposit in the United States mail, first

-31- 1 class, postage prepaid, addressed to the designee and at the

2 address in the latest designation filed by such party or active

3 party.

4 60. Intervention After Judgment. Any non-party assignee of

5 the adjudicated appropriative rights of any appropriator, or any

6 other person newly proposing to produce water from Chino Basin, may

7 become a party to this judgment upon filing a petition in inter-

8 vention. Said intervention must be confirmed by order of this

9 Court. Such intervenor shall thereafter be a party bound by this

10 judgment and entitled to the rights and privileges accorded under

11 the Physical Solution herein, through the pool to which the Court

12 shall assign such intervenor.

61. Loss of Rights. Loss, whether by abandonment, forfeiture

or otherwise, of any right herein adjudicated shall be accomplished

only (1) by a written election by the owner of the right filed with

Watermaster, or (2) by order of the Court upon noticed motion and

after hearing.

62. Scope of Judgment. Nothing in this Judgment shall be

19 deemed to preclude or limit any party in the assertion against a

20 neighboring party of any cause of action now existing or hereafter

21 arising based upon injury, damage or depletion of water supply

22 available to such party, proximately caused by nearby pumping which

23 constitutes an unreasonable interference with such complaining

24 party's ability to extract ground water.

25 63. Judgment Binding on Successors. This Judgment and all

26 provisions thereof are applicable to and binding upon not only the

27 parties to this action, but also upon their respective heirs,

28 executors, administrators, successors, assigns, lessees and

-32- 1 licensees and upon the agents, employees and attorneys in fact of

2 all such persons.

3 64. Costs. No party shall recover any costs in this pro- 4 ceeding from any other party. Jjl.N 27 197&1 ~ 5 Dated: . .. ' 6 7 Judge 8 9 10 11 12

17 18 19 20 21

22 23 24 25 26 27 28

-33- Attachment 2 Cucamonga Basin Judgment

1 r!ALKEI't, 210 West 7th 2 les 14. 8936 for

IS

? a IN THE SUPERIOR COURT OF TdE STATE OF CALIFORNIA

9 IN Pu'\[) FOR. THE COUNTY OF SAl"l BERNAFlDINO It)

~ 1 .~~

12 s.~\! AlYT00!IO WATE...9. , a c ion, 13 Plaintiff, 14 -vs- No. 92645 5 FOOTHILL IRF1.IGATIal SU1\iSET WATER vu".. ,ru .y '/lATER ,-,v'" ..ru', f.. 'J 17 I,e WATm

=,,'''"u ...... V1ATER WATER vu'mrr\.i' 22 REX MUTUAL WATER SAPPHIRE MUTUAL WATEH 'A""U;-ru. G'HArtLES UPLAND WATER v'-"l'l.l;'"'l'\" G. BOmaN and .24 THUST lJ-ID SAVINGS ASSOCIATIor;) Executors of the last will of Giovanni Vaj, WESTERt\l FRUIT ion; G. N.

30

-1- there has been filed in the bove for executed aru:i on the of each and all of the to said action

hereinafter referred to as the 11

), to wit~

San Antonio Water YUIII~'au a Foothill Ioamosa Water Old Settlers Water Sunset Water Water

Alta Lorna Mutual ~ater Nurseries. a Water Carnelian Water Citrus 'Water sWell Hellman Water Hermosa Water Mutual Water Water Western Fruit Growers Dave a Mutual Water a

Cha:rl-.)~ P. Crawford;

Bank of A~erica National Trust and Associa'tio;l,

national at~ociation~ and as executors of the last Will of G. N. Hamilton Rane a of Arthuz

~ Helen • Grace W. Burt; II Ii 'I

III 11 and Rex Mutual Water I 21 and, i WHEREAS, the Court has heard and considered evidence on the 3 1 1 4 Ii of various of the

-IIo I NaN. THEREFORE IT IS HEREBY L,n,u::ru::.u ADJUDGED MTI DECREED 6 r this Court that: 71 As used herein, the terms listed below shall have I 81 the next them, vi : I 91 Basirr~ or -Basin~ shall mean certain 10 of of I in San Bernardino, State Ca 11 ;, is more described upon Exhibit • and shall 1211 also include all water and water and water 13 I sources 141 water" shall mean water derived from a 51, Ii stream flow in an area outside of any water shed into the 16 1 1 Basin. water derived from San A':1tonio 1711 Creek is !1 waterll

ll 18 11 season shall mean that of each '1 19 I: year when is the users of tha water sold

the Plaintiffs and Defendants hereto. ~Vhile this vari2s , :: I from year to year, the season 2211 commences any month in which the rainfall does not exceed 231\ two inches, and the season terminates after the first ~H II rainfall of two inches or more. The season

25 Ii the from 1st to November 1st. 25 Ii season~ is the balance of each year 27 11 after season for such year and is .~a II from November 1st of one year to 29 1 1st of the year. 1,I :3 o I' to water shall mean to conduct the 'l!1 II v_ I' same upon and sink the same into the of in ,I 32 II a season. 11 il -3- Ii II ;l means the total r.romber of acre feet of water set the names of all in Exhibit 2. means, in each case, in the same propor-

tion as the aCre feet the name namas of the bear to the water; and the verb means to divide and share among the IIAllocated waterll of any or in each case means the number of acre feet of water set out on 11 Exhibit 2 the or names of such means the of secutive "calendar" years; which or has

14 I the I event "Fiv--e ....sixths of the water usersll shall mean 1611 in the allocated which

17 it not less than five-sixths of the total allocated water of all I 18 I 19 I ,I An !linch!! of water or a of water shall'

:~ li :" mean a flow of water to of a cubic

l foot of water per second of time. 22 ii Ii hereto the name of which ends 23 with or "Mutual Water will be hereinafter 11 24 11 referred to without such words. Thus Antonioil means herein 1" 25 il1ll5an Antonio 'liater and with the other 2i;. II !I said words or 1 Wacer 2'r !1 shall mea.':) the in za II Ii size between 32 inches in inside diameter and about 29 Ii Ii IS inches) which extends from a on the chao!1el ;] '3Oq II Creek at an elevation of 2350 feet above II called the ",:ouod 31 '1'1\ sea l~val 3~ i mentioned below. Ii 11 III,

1 I (1) "Round weir' .hall mean that certain weir of Ioamo ••

2 I marked on the map Exhibit 3 as ~Round Weir"and located near the top 310f the bluff on the East side of Cucamonga Creek and just Northarly 4 I from the Westerly prolongation of Almond Street, said weir being 5 the point from which (a) two ten-inch water lines marked on the map 6 Exhibit 3 as "Ioamosa 10 inch" lead Easterly to Ioamosa's I " ? Ilcarne11an Street Reservoir (at about elevation 2030 feet above sea 8 I level on the East side of Carnelian Street between Hillside Road an I . 9 jAlmond Street)j(b) a six-inch water line marked on the map Exhibit 10 as "Hamilton 6 inch"leads Southeasterly to the Hamilton Ranch(which 11 lies South of Hillside Road,North of Banyan Street,East of Sapphire 1.2 Street and West of CarneLian Stre~t) ,and, (c) an eight-inch water

13 line marked on the map Exhibit 3 as ~Banyan 8 inch" runs Southerly fl: 14 down Topaz Street to connect with the water system of Banyan Height ~i ~ ~j .J ~ 15 (m) "Reservoir 'Weir" means the weir of Ioamosa located at J.:J -1: ,. - " 16 .0'"~ the Carnelian Street Reservoir • 0: ~ s::t :J'< 17 (n)"Ioamosa Southerly Intake" shall mean a line extending I,' 18 I '.'lest across the channel of Cucamonga Creek from the existing"Canyon

ll 19\1 Wair" of Ioamosa m.rked on the m~p E:xhib.:i.t 3 as, "Ciimyon Weir , which 20 weir is located in Cucamonga Canyon,is part of the Canyon pipeline,

21 and is situated about midway (or somewhat Northerly thereOf)betw~enl'

22 the round weir and t~s Northerly intake mentioned above.

23 (0) nSchulhof pipe-line" means that certain three-inch ".va te

pipe-line marked on the map Exhibit 3 as ~Schulhof 3 inch" which 25 connects with the Canyon pipe-line Northerly of the round weir, and 26 which is mentioned in paragraph Second(h) of that certain dec:r:'ee 27 I dated April 12, 1937, in action No. 29,799 (Schulhof v. Cucamonga 28 Development Company) in the above entitled Superior Court. (p) The water to which Ioamosa is entitled as provided in 30 paragraph mThirdQ hereof is herein called l'Ioamosa gravity wat er", 31 or "gravity water".

32 (q) nAn overflow year~shall mean any calendar year for whichi

-5- I I

Ii liithe water level determined as hereinafter provided in the index

2 Iwell is at an elevation of 1345 feet or higher above sea level. 3 ,I For the purposes of determination of elevation above sea 4 i level the United States C-eological Survey bench mark on Baseline I 5 ,i (also known as 16th Street) as it exists on the date this decree is 61l entered, on or near the north boundary of Section 4, Township 1 71lsouth, Range 7 west, and approximately four-fifths of a mile west of

8 Vineyard Avenue,shall be deemed to be at an elevation above sea 9 level of 1454 feet. The elevation of the water level in such index 10 well shall be determined by measuring the elevation of such water

11 lin such well on October 1st of each year (Provided that if any such

12 !d ay falls on a Sunday or a holiday, measurements shall be made on 13 the next business day). The index well shall be the well known 14 as Shaft No. 9-A of the San Antonio Water Company located approx- I 15 1 imately 154 feet Southerly of the Northwest corner of Lot 14 of 15 Red Hill sutdivision and shown on the map Exhibit 5. Wells No. 11 17 10f Cucamonga Water Company and 20 and 22 of the San Antonio Vlate r

18 Company shall not ·be pumped wi thin three days before such date of 10 measurements, and the tunnel bulkhead adjacent to Red Hills Couot:ry

20 IClub will be kept closed for a like period before such date. If

21 Ifor any reason Shaft 9-A sha ll not be available for measurement, 22 then the index well shall be Wells No. 11 of Cucamonga ')'Vat e r Company

23 l o~ 20 or 22 of the San Antonio Water Company, in the order herein 241llisted. If for any reason none of said wells shall be available

25 Jfor such measurement, the identity and location of the index we ll

2611may be determined by a written stipulation executed by five-s ixths 27 lof the water users and filed in said action, or in default of I ,28 \said stipulation by order of the s a id court. ~0 I Annexed to this Decree and hereby incorporat ed h erein are t he, 30 If OllOVIing Exhibits: I

31 Exhibit 1: A description of the territory under which I

32 I lies the "Cucamonga Basin~; -6-

i11 1 A list of the :II allocated waterll of than the stream flow mentioned in "Third!l} ; A map of "Cucamonga A map of "Cucamonga A map of U'Well and Shaft Locationsl' ; 6 and said exhibits are herein referred to s I!Exhibi t P'

7 !'Exhibit 21t, "Exhibit 3 11 , :lExhibit 4" and "Exhibit 5".

8 This deals with the San Antonio may hereafter extract as reduced its failure to minimum amount of water hereinafter set forth,or as increased spre more water therein than

, however,in both such situations the spr~ad years in which such causes to overflow in such year constituting an • as defined in First, subdivision ( thereof. For the purpose of the c in this Second, assumed that San Antonio has in each of the ten 1957, 2, 000 acre feet of water. to each calendar year after of this decree

ten year shall be into II includedl! and years. "Excluded are those calendar years which defined as overflow years in First, subdivision ( ) All other calendar years are "included in the ten years San Antonio shall have acre feet of water in any the the above set forth, ifference amount of water which shall have so in such included years, and The the number of included years, shall the "ten year deficit". 32 of San Antonio to extract water the Cue

-7- 1 IBasin in any calendar year after the entry of this decree shall Oe 2 reduced by the number of acre feet of water equal to the ten year _ 3 deficit divided by the number of included years, if any such deficit

4 shall have occurred, so that such right to extract water for such

5 year shall not exceed 6,500 acre feet less the ten year deficit 6 divided by the number of included years.

7 Correspondingly, with respect to each calendar year after 8 the entry of this decree, if in the ten preceding years San Antonio

9 shall have spread more than 2, 000 acre feet of imported water in any 10 of the included years,as modified by the assumption above set forth. 11 the difference between {a) The amount of imported water which shall 12 have been so spread in such included yeprs" and (b) The quantity of I 1312, 000 acre feet multiplied by the number of inclUded years, shall be . 14 known as the "ten year surplus". 15 The right of San Antonio to extract water from the Cucamonga

16 Basin in any calendar year after the entry of this decree, shall be 17 increased by a number of acre feet of water equal to 95 percent of 18 the ten year surplus divided by the number of included years, if any

19 such surplus shall': "have occurred, so that there shall be added for

20 such year to San Antonio's right to extract 6,500 acre feet of water

21 a numbeI' of acre feet of water equal to 95 percent of the ten year

22 surplus divided by the number of included years. Provided, h01Never,

23 tha.t in no case shall such increased extraction exceed 2,000 acre 24 ~eet of water for anyone calendar year. 25 I So long as the water level in the index well referred to in 26 r,Daragraph First, su!:xlivision (q) herein is at an elevation telo,,! 27 11345 feet abov~ sea level, and in the event San Antonio has availablr 28 lin anyone calendar year after the year 1956 more than 2,000 acre fett

:: ' I :;::~::::::::a::::r~::o:::::::::: ::::~::~::~::::::::::::::::~:~::ll'l,n~

32 Ih ere"t a for spreading in the Cucamonga Basin and at a price to be fix d I I -8- \i \I II in any event to not the San Antonio can obtain from others not of this Decree.

the event San Antonio and the other ies not agree October 1st to the terms for the se water to be sold and the next then San Antonio is thereafter free to other persons heret • such water in the amonga will receive the credit for water If the agree to'the from San Antonio water,and such other than said water and same is in the then such year no credit shall San Antonio toward its ten year surplus deficit for amount of water so and Ioamosa'and Hamilton Ranch, a

, Helen and Grace W. Burt, are the owners to take and divert ach year from the Ioamosa intake all surface subsurface flow of Cucamonga Creek, not however hundred miner' inches of weir and the intake to shall be of said decree in acti No. 29,799 or othenJis. The flow of Cucamonga Creek up to miner's inches

is ect to an of Hamilton Ranch and I03r:105 water into the Schulhof • and the balance is owned Hamilton Ranch and loamosa in the

( ) Ranch thereof;

-9- Ioamosa thereof, ect to to the extent of one ( ) inch from 'Neir box on located appro 12.00 feet the

The Ioamos to Ioamosa water are eet to the ions hereof. Ioamosa may such water to any location or locations whether the basin, and use or deliver such water at any such location, , however, if any of the Ioamosa 10, used or conducted outside the Basin in any year, 1 111 which Ioamosa shall be entitled to develop 12 Basin by and Exhibit 2. 'I 13\! year shall be reduced an amount 14 II of Ioamosa water so used or conducted outside the in 15\1 d such year.

IiI, II The st hereto shall within ays 1'7:1 after the date of this j , at their expense, C 18 I.truet in a manner .hall h've been San Antonio 19 1' Water or the above entitled Court a divid weir 20 Ii where Ioamosa now maintains the 'Jiround weiI'". Such weir 21 Ii" shall be so constructed that it will automat limit to 2.49 inches the amount of water that will flow into the bove mentioned four lines are now connected the round and are referred to in First (1) herein.

Within days after the date this j the ies hereto shall als construct in v,hich shall have been a San Antonio Water or the above entitled Court a divid weir the said Carnelian Street reservoir The weir at be so constructed to Ioamosa to such 1031710sa water to domestic use.

-10- i I II ,I 11! During each spreading season, the remaining amount of Ioamosa 2 i gravity water oveT and above fifty (50) inches, shall be eitheI'~

1 3 \ (a) Used for irrigation purposes over Cucamonga Basin; or,

L:: (b) Spread over Cucamonga Basin in the spreading grounds I 5 I of Ioamos~ or Banyan Heights Water Company; or 6 (c) Returned by 'Ioamosa to the channel of Cucamonga Creek., 7 During each spreading season all of the flow of Cucamonga 8'1 CTeek in excess of such 250 inches after passing through the debris 9 I! basins numbered Cl to C12 inclusive on Exhibit 4 shall be spread in 10 I spreadin9 grounds which now exist, or are now under constructioll,or 11 which ai-e proposed, as shown on Exhibit 4,including the channel or

12\ wash of Cucamonga CTeek, and which overlie the Cucamonga Basin and I 13 ! are North of Baseline Road. WheneveT such spTeading grounds ar~,all~

I:': overflowing, or would overflow, the waters which do or would so averr l:J ~ 141 ~~ .Jj 12 _I ~ 15 flow may be spread in the "15th St.Spreading Grounds as shown on I :1::;':1'" ni .. I Z 16 c:~ ~~ ::; < 17 ::::f:::: ::: ::::r:h:h:~:t:OS:: :::::d::9o::~:::":~:o"::t:rs:~Uldl 'Jl 18 Spreading Groundsll may be spread in what is known as the 1Il8th Street 19 Spreading Grounds«, all as shown on Exhibit 4,even though all or part 20 of such spreading grounds do not overlie the Cucamonga Basin. 21 Such spreading shall be done at one or more locations in said I 22 \1 spreading grounds which shall be approved by San Antonio. 23. 'II Such flow of Cucamonga Creek may be spread at other locatioll s 24 i, than above provided, and outside the area above described upon the I I 25 , I written consent of 5/6th of the water users, as defined i:1 para9rap,[ 26 First 5u\xlivision (k) of this Decree. 27 If any costs are incurred in such spreading by ally party 1\ 23 I hereto , for which such party would not otherwis e be reimbursed, such I I , 29 I costs shall be pro-rated between the parties h~re to . 30 I FOURTH: Tne rights of all stipulating parties to t ake '.'later 31 I from Cuca~on9a Basin, subject to the adjustments set forth in this 32 \ decree and to the provisions of paragraphs Second and Third above, Ii Ii -11- I!

I,i ). are fixed at th9 set forth in Exhibit 2. Such 2 are correlative, and e as to or herein :5 otherwise stated are equal. No shall have 4 to water from the amonga Basin or use water 5 from the Basin any other than over 6 Basiil Third and as follows: 7 (a) The , or any of 8 may use water which are entitled to extract frow 9 Basin in any location whatsoever, name »San Antonio, 10 , Old Settlers, and Sunset.

11 Hermosa, Foothill nd Alta Loma 1,2 are entitled e water from o the 13 extent hereinafter set and none of said shall ever

~ 14 from the Basin more water than said n :;~l J 15 1.;1 for it, to 'Nit: ::r; Ii! 16

17 HERMOSA Acre

18 FOOTHILL IRRIG.A.TICN COMPANY 483 Acre Feet 19 ALTA LOMA 51 Acre 20 and in any year vlater used outside the basin which 2l tracted or from the basin any said exceeds 22 above Hsted for such the of 23 which such shall be entitled to deve or extract 24 the basin in the year shall be reduced an amount 25 to such excess.

.00'" Within this 27 , San Antonio shall, in the event it has not a , install, at locations, suitable ree and 29 devises, means of which all ,:vater pass 30 such devices may be accurate measured 31 of such water recorded. Said locations are

Z~ On 23rd Street at tha Northeast c of ario -12- Lot No. 170 On 20th Street at the Northwest corner of Ontario Lot • 282; On the West line of Ontario Lot No. 301, 400 North 19th Street. S;Jch and devices shall be of such d onstruction as may be upon and between San Antonio and

8 IiII Cucamonga.• or, if fail to agree,as may ,I 9i Chief ! of the San Bernardino Flood Control District, 10 I or the above entitled Court. 11! All water which is to be upon i Hi whether San Antonio to ear'n its lement 13 !I Second hereof, or is after the thereof I: 1<1 II hereto than San Antonio,shall be conducted ,~ II and devices San Antonio,unless otherwise 16 Ii jI es, inc San Antonio, I' 17 allocated water to at least five-sixths 1: 18 11 st water, and no water not so conducted 19 II devices and measured shall be counted as water 20 :'II of such Second, unless so "1 1, w 11 Said devices be 22 I! (:: rE!"ccrrcr the- amourrt of water 1 23 1 the staxt and finish of each caSe. 0 L In I' 24 1\ of devices, average of the and 25\1 measurements shall be used. Such records shall be 26 :1 ion of all other on reasonable II 27 II Each shall have the such Ii 28 Ii devices at any the event that Ii 29 II the shall ever locked,each s sha ~ I be furni San Antonio with thereto so a r! 31 !I thereof. Further, San Antonio shall t Ii hereto, insofar as it can do so without 3,2 II " -13- 'I ! I ljlrequired to obtain the same from others, ~ non-exclusive right of 21\ingress and egress fro~ the nearest public street to said recording

3 ~easuring devices. The stipulating parties hereto shall pro-rate the 4 expense of the original installation of said recording measuring 5 devices, and San Antonio shall thereafter operate and maintain and 1 51 bear the expense of operating and maintaining such devices. ? II SIXTH: As between the stipulating parties only, no extractio I' o 10f water from Cucamonga ~esin by any party in excess of the amo~nt 9 herein provided to be taken by such party, shall be deemed adverse to 10 any other stipulating party, and each stipulating party hereby waive 11 as against each other stipulating party the right to plead any statu e 11 12110f limitations or laches with respect to any extraction of water by 13 'I such party in excess of such amount.

II: Ie, SEVENTH: Except as provided in paragraph Second, if any stip- ~:J :l ~::i ~~ 15 ulating party in any year shall fail to take or receive from the bas n III -< :t u e~ 16 or transport beyond the confines of the basin,the full quantity of 1';:0 ~.~~ 11 water which such party is entitled hereunder to take or receive or r-J 18 transport beyond said confines,as the case may be,such failure shall 19 not entitle such party to take or receive or so transport from the

20 basin in any succeeding year any greater quantity of water than if in[ 21 each prior year such party had taken,received and so transported

22 from the basin all water which such party was entitled hereunder to 0 23 take, receive and transport, and, subject to the provisions of ?ara:-l 24 graph Fifteen, such failure shall not affect the rights of other 25 parties to the decree to take the stipulated amounts of water they a .... e 2:5 \,e ntitled to receive by Exhil:Jit 2 herein. 27 Likewise,except as provided in said paragraph Second, as

I 28\ between the stipulating parties, no right adjudged hereunder of any 29 Iparty to thereafter take water from the Basin or to thereafter tranS[1

30 \, port such water beyond the confines of the Basin shall be lost, 31 I\ impaired or diminished by any failure to take or so transport from t e \Basin '111 or any of the water to which such party is entitled hereun·

4 lean be determined therefrom for each year what quantity of water waG ~ \taken from each well, or combination of wells,or other water source 6 iWithin the Basin from which such party received water. 7 I Upon written demand of any other stipulating party,the party 8 keeping such records shall, within 30 days after receipt of such 9 idemand, supply to the party making such demand or to the person 10 designated by such party in such demand a vlI'itten statement of the 11 amount of water(in acre feet)so taken from each such well or combin­ lz!lation of wells, or othei source,for each year after 1957, with 131\resoect to which no such statement has previously been supplied. l4 I ' Within six months hereafter as to existing wells, or upon I 15 ,Icommencement of operation as to wells first hereafter operated, each 16!SUCh well or combination of wells shall be so equipped with measurinr 1711devices at the expense of stipulating party who operates the same,as 18 lito show the quantity of water used or extracted. 19 Likewise, if any stipulating party hereafter transoorts water 20 beyond the confines of the Basin,such transporting party ~hall therel 21 after maintain such measuring box,meter,weir, or other measuring 22 device as will show readily and accurately the quantity of water at I 231 :the time being transported beyond the confines of the Basin.Measure~ 24 ,ments of the quantity of water being taken at each of said points I 25 i shall be made by such transporting party at least daily by weir or I 26 IweeklY by meter throughout the entire period water is being taken ati

27 \SUCh point. A record of such measurements and hours of operation !I 28 ' shall always be made and maintained by such party.ln'case of failure 29 IOf measuring device, average of the preceding and succeeding meas~r e~ 30 Ilments shall be used. I 31 ~ Each stipulating party and any agent of any such p arty shall

32 11 at all reasonable hours be entitled to inspect all such meters, b O X8 S , Ii II -15- I I I me devices, and , and copy

of extractions and measurement a and c:::o:n- the

favor to and inure to the

the he:irs, 1 r~pre sors and The maximum of water which any shall be entitled to take from the Basin or

shall not be increased or affected additional lands, there shall are

contained shall any 51

or otherwise d J or from to water or to may be any a this 19 such so or shall remain to any 20 limitations or restrictions herein e transfer of the 21 of any herein shall be in , and notice thereof

22 be to San Antonio Water and a Basin 23 Association, a whose address is Cuc .24 before the may exercise such transferr0d 25 The shall e 26 incurred after the date in prosecut this action.

the B3sin hereafter other than a or , and ',vill the expense of such oppo ltion, any or that; -16·- 1 The t9rm tliI new shall not lude any hereafter made for the sole purpose of maint3in-

any of water ~10W tak",n t:r:om person who may hereafter such deve

11 bear such suit (inc is fees and if final i;;; rendered in such

and emp oined and re- any Ele\Tel'!i:.h hereof. No shall be entitled to from any other The above entitled action shall continue and may all defendants therein, othe:r: than shall share retain

una ble to pump and of water so

'l.N3ter lable in

Octob€r 1st of year

calendar year, five~,sixths of the 'N;:l.te:: user [f I

I 1 ilshall agree in wri Hng by a stipulation filed in said action that 21the supply of water in the Basin is ;nadequate to safely permit the 3 Istipulating parties to pump in such ensuing year the aggregate 4. Istipulated water and that the amount of water to be pumped by each

5!stiPulating party shall for such succeeding calendar year be limited 61!lto a specified percentage (uniform for all)of the allocated water, 7 then for such succeeding calendar year, each stipulating party is

8 I hereby enjoined and restrained from pumping or extracting from the 9 Basin more than such percentage of allocated water of such party 10 (subject to the provisions of paragraphs Second and Third hereof). 11 STXJEENTH: The listing upon Exhibit 2 of any number of 12 acre feet for any party to this action other than a stipulating I 13 party, shall not re deemed an admission by any stipulating party f';! 1t, that a non-stipulating party is entitled to any water whatsoever !:!" -1:l 15 from Cucamonga Basin, nor as to the qUiilinti ty which such nOfl- ~~ I ~~ 16 stipulating party may take from said Basin, if any, but each such 17 'lfi9ure for any non-stipulating party is listed as a matter of can­ ~~Ol IS Ivenience and as a possible basis of compro~ise only. 19 SB/ENTEENTH: This judgment supersedes and controls all

20 previous agreements and decrees between the stipulating parties. or I 21 any of them but only insofar as they are inconsistent herewith. 22 Done in open Court this 25 day of April 1958 --~------~-, . 23 I I 24 I 25 I CArtL B. HILLIARD 26 Judge 27 23

2 ~~ I 30 I

:31 I

=52 II

II -18- II !l ~ 11 I 1 i EXHIBIT 1

:.?- II TERRITORY UNDER WHICH LIES THE IlGU:AMONGA BASIN" I' O[1 I I: ~ II That certain territory in the County 0 f San Bernardino " ' II 5 state of California, which is situated to the South of the Sierra 6 Madre range of mountains and is bounded and described as follows.

~I to wit ; 8 1 Beginning at the base of the hereinbefore men- Ii tioned Sierra Madre Mountains at a point situate 9 I 9000 feet due Nor.th of the Southwest corner of Lot 241, said lot being delineated on Map of 10 I Ontario Colony Lands, recorded in the Office of the County Recorder of said County in Book 11 of Maps,atpage 6 thereof; thence rurtning South 11 'I to said Southwest corner of said Lot 241; thence running in a general Southeasterly direction to 12 1 the Southeast corner of Lot 419, said lot being 13 also delineated on said Map of said Ontario Colony I Lands; thence continuing in a general Southeasterly direction to a point situate thirteen hundred feet North of the South line and thirteen hundred feet ~: I East of the West line of Section 4, Township 1 South, Range 7 West, S. B. B. & M., thence running Hi ll in a general Easterly direction to a point situate on the East line of said Section 4, eighteen hun­ 17\1 dred feet North of the Southeast corner of s aid I Section 4; thence running in a general Northeasterly 18 direction to the Southeast corner of the Southwest 1 quarter of the Northeast quarter of Section 3, 19 Township 1 South, Range 7 West, S. B. B. & M., thence running Northeasterly to a point situate on the North 20 line of Section 2, Township 1 South, Range 7 West, S • . B. B. & M., fourteen hundred feet East of the We st 21 I line of said Section 2; thence running in a general Northea~terly direction to the base of said mountains, 221 to a point where the division line between ranges six and seven, S. B. B. & M. intersects the South 23 base of said mountains; thence follollling the meander­ ing line of the South base of said mountains , being curv~d northerly for canyons and southerly for ridges, 25 in a westerly direction to the place of beginning. 20 2'7 23

30 31

EXHIBIJ 1 EXHIBIT 2 STIPULATED WATER

ACR~ FEET PER Y~4R

San Antonio Water Company 6500 Alta Lorna Mutual Water Company , 600 - Armstrong Nurseries 200 .--

Banyan Heights Water 'Company ,~,.625 Ca;rn9lian Watar Company Citrus Water Company ' ;450 , -

Cucamonga Water Company t--6000 12 Cucamonga Development Company (included under None 13 Ioamosa) . I Foothill Irrigation Company ,,/1600 I ,.!.J-. 'I Hedges W~ll Company :.--.. 732 16 Hellman Water Company (included under Ioamosa) None 18 Hermosa Water Company ~ OO loamosa Water Company Joya Mutual,Water Company

Old Settlers Water Company "....- 400 Y'" Rex Mutual :Wa'te£ Cqmp3J'lY c-600 :.' Cha:des Snyder t-/l14 Stll1set Water Company ;....-400 ,:.' Upland Water Company 750

Heirs and Devisees of Giovanni Vai,deceased v'500 Hugh P. Crawford120 " Western Fruit Growers ,.. 121j / Sapphixe Mutual Water Company None G. N. Hamilton Ranch, a partnership None AGGREGATE STIPULATED WATER '22~721

EXHIBIT 2 I':1 il , i 11 ViALKER. WRIGHT, , 210 W. 7th Street 2.1 Los l4~ i! iI i' for Plaintiff ,4 i1 II - II \) " II q 611 711,I a I[ IN THE SUPERIOR COURT OF THE STATE CALIFORNIA

911 IN M'D FOR THE COUNTY OF SAN BERNARDINO 10 II nil SAL\) ANTONIO WATER vV'".T''' a c Ii No. Plaintiff, II ~: ,I vs. 11: 1411 FOOTHILL I~qIGATION COMPANY, ill" ~j SUi'·;SE7 WATER COMPAl\lY, g?< 151 WATER '"'U"l.rrU~ -.. WATER vUl:'Jl."''''''' oj ~ 16 WATER COMPANY, I:! oX 1: ,~ ~ NURSERIES. a S'" 1'1 1\ :JJ Ie Ii I I WATER v"-','..-r,,, 20 I WATER VViO,"-rI.I 21 JOYA ~¥rJTIJAL WATER vU1Vll:'r\l~ I VVl"ucru I RSX ivlUTIJAL WATER SAPPHIRE MUTUAL WATER ,",U'VIl:'i"U~ 22 I CHARLES SNYDER UPLAND WATEIl a 23 II G. BODKIN and OF I, TRUST AND SAVINGS ASSOCIATION, as Executors the last will of Giovanni Vai, 24 II WESTERN FRUIT GRONERS ion; 25 II of I, JOHN DOE ONE 0 2:) II MAllY ROE CNE THIRTY inclusive. 27\1 COMPil,:.\)Y ONE TO TWENTY inclusive, H Defendants.

29 11 \\ IT IS HEHEBY STIPULATED AND AGREED and 30 !I San Antonio Water defendants ( 31 il I: iff and defendants herein called 32 Ii It li -1- \1 d 'I II n 1/ " '/ II 'i II i! il .- 1 II,I that: Ii 2 11 FIRST: Each of the undersigned defendar-,ts hereby appears in 3 11 the above entitled action. The allegations of the complaint on 'I II I"I II file in said action shall be deemed denied by Lle undersigned

d,I defendants, and they shall be and are deemed to have alleged in II I o Ii II said action that they own s~ch rights to the waters of Cucamonga I 7 I; I ' Ii Creek and of Cucamonga Basin (mentioned in said judgment) as may / . 11 8 II be supported by any evidence which may be introduced at the trial ,I I 9 II of said action. 10 !i Ii SECOND: At any time after the filing of this stipulation I I -1'1 said action may be tried as between the stipulating parties. Said :211 trial may be held without notice if the undersigned counsel farthe :!.3 III stipulating parties are present or represented at said trial, and . ., 4 II \U ... Ii in such case notice of said trial is hereby waived. ";- _I , P .J lJJ 15 Ii THIRD: The stipulating parties consent that a Decree in the I ... I' ':"~; 16 form which precedes and is attached to this stipulation may be ;r. 1 c: 1 ;:J (;1 17 Ii rendered and entered by the Court in said action, in the event I 18 II the Court finds such judgment proper under the evidence which shall Ii 19 :1 !I have been introduced. 20 I! FCURTH: The stipulating parties hereby waive the signing 21 I I or filing of any Findings of Fact in said action in the event a 22 I /i decree in said form is to be rendered. 23 'I a;~ 1"'1;( E ~ at2r!: P : 3~"sfl'lbe-l' ~.;) ,195/.

I 30 I: I I' I !! ! . ~51 q 32

-2- "

1 IOA\VSA WATER CO~FA:~

.2

3

4,

;5

'7

WATER cmltPAiW

9 10

11 12 13 14

15 ALTA LOMA MUTUAL WATEH COMPANY 16 17

19

20 X 21 22 23

24

:2

20 27 23 ;:a9

-3- : " ~ . ~. ''": -, - "r ,

Ii 1

2 PreSluent

3 Secretary ,J HELL'AAN WATER COMPANY

5 BY ::t5~ ~. Pr~ident 7 AND~~cretarye.

8 HERMCSA WATER COMPANY 9 By~~7!)rC~;;;eSident 10 X A;~7t(icM.t. ~cretary 11 i 1.2 I 1 ! 13 i

20 21 22 23 I BY~~~~~~~~~"-__ 24 I AND~~~~~~~~~~~ :: I 27

:< 30 I

31 II 32 'I II -4- II ...... :

r .'.: :

I :I HENRY G. BODKIN and BANK OF AMERICA NATIONAL TRUST A.l\lD 111 SAVINGS ASSOCIATION, As Executo~of the Last Will of : Ii Giovanni Vai, dec~~ed; 4i BY .A-}:~. 'l'L-J) 1, AND 'fz~F 'C~ 51 I ~y G. Bodkin) 6 ' 1 '7 II 81 I, 9 10 11 Partners 12 13 REX MUTUAL.. WATER COMPANY :l: 14 ~J l'I ~A ~ ,.SLuw.,.'~ident -l-, ,.j hi· 15 , AI'ID m Jr. d.7t= Secretary / :t:;! ~i?YL .,~ 16 7 "- 1 !l: 0 (l:~ ~~HELLYER, :J" Cl 171 FN ~ 13, ULJvL .1-- 18 .k(torneys for Ioamosa, . Cucamonga, 8any,an Heights, Joya Mutual, Rex Mutual, 19 ( anq/Sapphire Water Companies, and for ~dges Well Company and Cucamonga 20 Development Comp_ny. 21 22 23 24 25 :

26 II, I 27 ,

28 I 291, 30 II 31 II 321 -5- 11,I I'I.,\ II Cucamonga Valley Water District Water Supply Assessment For the BRIDGE POINT RANCHO CUCAMONGA

Development Project

City of Rancho Cucamonga, California

August 10, 2020 Revised October 16, 2020 Revised December 11, 2020 Revised January 7, 2021

June 2021

Contents

1 Regulatory Background ...... 1 2 Introduction ...... 3 2.1 Plan and Project Overview ...... 3 2.2 CVWD Service Area ...... 7 3 Cucamonga Valley Water District Water Supplies ...... 8 3.1 Wholesale Water Supplies ...... 9 3.1.1 Wholesale Quantities Received in Prior Years ...... 10 3.1.2 Imported Water Reliability ...... 11 3.2 Groundwater Supplies ...... 15 3.2.1 Chino Basin Groundwater Supply ...... 15 3.2.2 Cucamonga Basin Groundwater Supply ...... 17 3.3 Surface Water Supplies ...... 19 3.3.1 Cucamonga Canyon ...... 19 3.3.2 Day/East Canyon ...... 20 3.3.3 Deer Canyon ...... 20 3.3.4 Surface Water Reliability ...... 20 3.4 Recycled Water Supplies ...... 20 4 Cucamonga Valley Water District Water Demands ...... 21 4.1 CVWD Historical and Projected Data ...... 21 4.2 BPRC Water Demands ...... 23 5 Future Supply ...... 26 5.1 Normal Year ...... 27 5.2 Single Dry Year ...... 27 5.3 Multiple Dry Years ...... 27 5.4 Additional Available Water Supplies ...... 28 6 Conclusion ...... 29

i Tables

Table 1: Water Demand Projected, AFY ...... 3 Table 2: Water Supply Sources ...... 8 Table 3: Water Supply Quantities, AFY ...... 9 Table 4: CVWD Water Production Capacity, AFY ...... 9 Table 5: Wholesale Water Imports ...... 10 Table 6: IEUA Import Projections ...... 11 Table 7: CVWD Groundwater Production Capacity ...... 15 Table 8: Chino Basin Pumping Rights, 1978 Judgment ...... 16 Table 9: Chino Basin Historical Production, AFY ...... 17 Table 10: Chino Basin Projections, AFY ...... 17 Table 11: Cucamonga Basin Pumping Rights ...... 18 Table 12: Cucamonga Basin Historical Production, AFY ...... 18 Table 13: Cucamonga Basin Projections, AFY ...... 18 Table 14: Surface Water Historical Production, AFY ...... 19 Table 15: Surface Water Production Projections, AFY...... 19 Table 16: CVWD Historical Water Production, AFY ...... 21 Table 17: Population, Actual and Projected ...... 21 Table 18: Water Use Sectors, Actual and Projected, AFY ...... 22 Table 19: Climate Data ...... 22 Table 20: CVWD Projected Water Supply ...... 23 Table 21a: BPRC Proposed Land Use ...... 24 Table 21b: BPRC Water Demand Estimate ...... 24 Table 22: CVWD Future Potable Supply – Normal Years ...... 26 Table 23: Normal Year Supply and Demand ...... 27 Table 24: Single Dry Year Supply and Demand ...... 27 Table 25: Multiple Dry Years Supply and Demand ...... 28

ii Abbreviations

AF Acre-Feet AFY Acre-Feet per year BPRC Bridge Point Rancho Cucamonga CEQA California Environmental Quality Act COA Coordinated Operation Agreement CRA Colorado River Aqueduct CVP Central Valley Project CVWD Cucamonga Valley Water District CWF California Water Fix DCP Delta Conveyance Project DCR Delivery Capability Report DU Dwelling Unit EHNCP Etiwanda Heights Neighborhood & Conservation Plan EIR Environmental Impact Report GPCD Gallons per capita per day GPD gallons per day GPM gallons per minute IEUA Inland Empire Utilities Agency MGD Million Gallons per Day MWD Metropolitan Water District of Southern California MWDSC Metropolitan Water District of Southern California SQFT Square Feet SWP State Water Project TAF Thousand Acre-Feet UWMP Urban Water Management Plan WSA Water Supply Assessment

iii References

1 2019 State Water Project Delivery Capability Report, August 26, 2020 2 Cucamonga Valley Water District 2015 Urban Water Management Plan 3 Inland Empire Utilities Agency / Water Facilities Authority 2015 Urban Water Management Plan, June 2016 4 Metropolitan Water District of Southern California Urban Water Management Plan, June 2016 5 Metropolitan Water District of Southern California Integrated Water Resources Plan, 2015 Update, January 2016 6 Chino Basin Judgment (Attachment 1) 7 Cucamonga Basin Judgment (Attachment 2) 8 Cucamonga Valley Water District 2017 Water System Master Plan 9 Information provided by Cucamonga Valley Water District Staff

iv 1 Regulatory and Procedural Background

Senate Bill 610 Senate Bill (SB) 610 became effective on January 1, 2002, amending the California Water Code (CWC) by requiring detailed analysis of water supply availability for certain types of development projects. (See California Water Code Division 6, Part 2.10, Sections 10910-10915 (Water Supply Planning to Support Existing and Planned Future Use).) The primary purpose of SB 610 is to improve the linkage between water and land use planning by ensuring greater communication between water providers and local planning agencies, and ensure that land use decisions for certain large development projects are made based on complete information as to whether sufficient water supplies are available to meet project demands. The WSA must include a discussion of the availability of an identified water supply under normal-year, single- dry-year, and multiple-dry-year conditions over a 20-year projection, accounting for the projected water demand of the project in addition to other existing and planned future uses of the identified water supply.

This WSA has been prepared pursuant to the requirements of the California Water Code for the approach, required information, and criteria, confirming Cucamonga Valley Water District (CVWD) has sufficient water supplies to meet the projected demands of the Bridge Point Rancho Cucamonga project (BPRC or Project) in addition to existing and planned future uses, over the next twenty years. CVWD’s 2015 Urban Water Management Plan (UWMP) is a foundational document for the preparation of the WSA in compliance with the Water Code. The provisions of the Water Code identify the UWMP as a planning document which can be used by a water supplier in preparing a WSA, and projects that rely on groundwater must include a review of any information contained in the UWMP relevant to the project. The water agency must determine whether projected water supplies are sufficient to meet the demand of the project, in addition to existing and planned future water uses. The lead agency for the preparation of an Environmental Impact Report (EIR) for a proposed project is required, under California Environmental Quality Act (CEQA) guidelines Article 7 EIR Process and Article 9 Contents of Environmental Impact Reports, to consult with the water agency serving a proposed project and to include in the EIR information provided by the water agency.

Water Supply Planning Provisions CVWD’s 2015 UWMP (June 2016), was prepared pursuant to California Water Code Division 6, Part 2.55, Section 10608 (Sustainable Water Use and Demand Reduction) and California Water Code Division 6, Part 2.6, Sections 10608-10656 (Urban Water Management Planning). The UWMP describes future water demands and future availability of the water supply sources used by CVWD. The Bridge Point Rancho Cucamonga WSA uses the base water supply and demand information from the UWMP, as well as the updated demand and supply information from CVWD staff and recently adopted CVWD water supply and demand information.

California Water Code (Sections 10910-10915) California Water Code Division 6, Part 2.10, Sections 10910-10915 requires a WSA to provide a description of all water supply projects and programs which may be undertaken to meet total projected water use over the next 20 years, including the water use of the proposed project. The California Water Code requires a city or county which determines a project is subject to CEQA to identify any public water system which may supply water for proposed developments and to request those public water systems to prepare a WSA, including projects with a proposed equivalent of 500 or more dwelling units. If the water demands have been accounted for in a recently adopted urban water management plan, the water supplier may incorporate information contained in that plan to satisfy certain requirements of the WSA.

1

The California Water Code requires the assessment to include, along with other information, an identification of existing water supply entitlements, water rights, or water service contracts, relevant to the identified water supply for the proposed Bridge Point Rancho Cucamonga project and the quantities of water received in prior years for the Project site pursuant to those entitlements, rights, and contracts.

As the lead CEQA agency, the City of Rancho Cucamonga (City) has determined that the Project is subject to CEQA. At the time the CEQA lead agency determines the Project is subject to CEQA review, the lead agency must identify and consult with the public water system that will supply water for the Project to assist in evaluating whether the Project will: (a) require or result in the relocation or construction of new or expanded water facilities, the construction or relocation of which could cause significant environmental effects; and (b) have sufficient water supplies available to serve the Project and reasonable foreseeable future development during normal, single-dry, and multiple-dry years. The Project is located within the service area of CVWD, and the City has requested that CVWD prepare a WSA for the Project. The lead agency (the City) will make the ultimate independent determination as to whether there is adequate water supply for the proposed Project, upon consideration of the entire administrative record. This WSA provides information on the Project’s proposed water supplies and provides data to support the sufficiency of supply. This WSA includes an overview of the proposed Project, a discussion of CVWD’s total projected water supplies available during normal, single-dry, and multiple-dry water years during a 20-year projection, and concludes that those supplies will be sufficient to meet the projected water demand associated with the proposed Project, in addition to CVWD’s existing and planned future uses, including agricultural and manufacturing uses.

2

2 Introduction

The purpose of this Water Supply Assessment (WSA) is to evaluate the water supply availability for the Bridge Point Rancho Cucamonga warehouse project (BPRC or Project) located within the service area of the Cucamonga Valley Water District (CVWD). This particular project was not accounted for in CVWD’s 2015 UWMP. Accordingly, this WSA includes a discussion of CVWD’s total projected water supplies available during normal, single-dry, and multiple-dry years during a 20-year projection and concludes that CVWD has resources to meet the total projected water demands for the Project in addition to CVWD’s existing and planned future uses, including agricultural and manufacturing uses.

The Bridge Point Rancho Cucamonga project is defined as a ‘project’ pursuant to the definitions identified in the Water Code section 10912(a). Potable and recycled water (for outdoor irrigation) will be supplied by the Cucamonga Valley Water District (CVWD). CVWD meets the definition of a Public Water System as defined in the Water Code § 10912(c).

This WSA document incorporates water supply and demand projections from Cucamonga Valley Water District’s adopted 2015 Urban Water Management Plan (UWMP), dated June 2016, as well as the pertinent updated demand and supply information from CVWD staff.

The land use Information for the BPRC development project is based on information provided by the Project Applicant. The water demand projections in the Water System Master Plan are consistent with the Total Water Use projections in the 2015 UWMP. (The Water Master Plan documents the existing distribution system and proposes supply and distribution facilities in order to serve existing and future development. The Water Master plan is an internal document used as the basis for capital improvements and justifies capital outlay for such improvements.) A comparison of the projected water demands in each document is shown in Table 1. The demands from 2015 are noted in the Water System Master Plan as a low-demand year due to state-wide water shortages and mandatory reductions on imported water.

Table 1: Water Demand Projected AFY WATER SYSTEM MASTER YEAR PLAN 2015 UWMP 2020 58,859 58,900 2025 61,298 61,300 2030 63,652 63,700 2035 63,652 63,700

2.1 Plan and Project Overview The Project is located east of Interstate 15 between 4th Street and 6th Street, as shown in the vicinity map of Figure 1.

3

The Project site covers approximately 91.4 gross acres in the southeast portion of the City and is zoned for Heavy Industrial and General Industrial land uses. After public roadway dedications, the Project net area will be 83.4 acres. The site has historically received water service for approximately 1,454,240 square feet of retail, warehouse, and ancillary office uses located in the southern portion of the Project site. The proposed Project will remove the existing structures, parking, and landscaping, and replace it with two separate warehouse structures with a combined building area of approximately 2,175,000 sf of warehouse uses (including ancillary office space), parking, and landscape irrigation. The employment opportunities (employees) for current and proposed Project conditions are estimated to be approximately 1,202 and 1,479, respectively, for a net estimated increase of 277 employees. This WSA also considers the water demand for aesthetic landscaping proposed on the perimeter of the site, adjacent to building entrances, and within parking medians. The total landscape irrigation area proposed for the Project is estimated to be up to 9.4 percent of gross site area. The proposed site plan for the Bridge Point Rancho Cucamonga project is shown in Figure 2.

5

DRC 2020-00202 DRC

A1-0P

SHEET: Figure 2 Figure

200' 100' 50' 20' 0'

SCALE: 1" = 100'-0" = 1" SCALE:

SITE PLAN SITE

SITE PLAN SITE

INDUSTRIAL BUILDING INDUSTRIAL BUILDING INDUSTRIAL

SHEET TITLE SHEET

EXISTING EXISTING EXISTING

TRAILER DROP LOT DROP TRAILER

RGA, OFFICE OF ARCHITECTURAL DESIGN ARCHITECTURAL OF OFFICE RGA, BUILDING WITH OPEN OPEN WITH BUILDING

COPYRIGHT EXISTING INDUSTRIAL INDUSTRIAL EXISTING

CS BY: CHK'D

8'-0"H TUBE STEEL FENCE STEEL TUBE 8'-0"H FENCE STEEL TUBE 8'-0"H

8'-0"H TUBE STEEL FENCE STEEL TUBE 8'-0"H

8 8 8

DR

DRAWN BY: DRAWN CITY OF

BOUNDARY

CITY 221' 1,038'

OF RANCH 1,430'

BOUNDARY LINE

ONTARIO

LINE

23 7 O CUC 1419.72' LINE PROPERTY 19134-01-A1-0P NAME: FILE CAD

AMONGA

Ā 14'37" E 1464.19' E 14'37"

N 0 N N 0Ā14'37" E 1464.19'

PL 45.0'

STEEL FENCE STEEL N 89

NE LI SETBACK LINE ACK SETB ACK LINE ACK B SET OWNER PROJECT NO: PROJECT OWNER

00000.00 EX. 33" STORM DRAIN GATE

ILDING BU 5' NG UILDI B 5'

Ā BUILDING 5' 8 54'00" E 44.99 45' 52' 40'

8'-0"H TUBE TUBE 8'-0"H SETBACK LINE

35' BUILDING

PROPERTY LINE 1797.03' LINE PROPERTY CONSTRUCTION

3' SOUTH OF PL

'

RGA PROJECT NO: PROJECT RGA 19134.01

Ā Ā 14'37" E 1857.03' E 14'37" 0 N 14'37" E 1857.03' E 14'37" 0 N

60.00' 1797.03' 1797.03'

℄

SETBACK LINE SETBACK

SETBACK LINE SETBACK NE I L SETBACK NE LI BACK SET NE LI SETBACK

5' BUILDING 5'

5' BUILDING 5' NG BUILDI 5' 5' BUILDING 5' 5' BUILDING 5'

100 TRAILER POSITIONS TRAILER 100

11

57 STALLS 57

LTI (U ATE ATE M

W: R/ 44') 51 STALLS 51

AREA D T STREE ATI EDIC ON

DESCRIPTION DATE

MARK SETBACK LINE

45' BUILDING

54 STALLS

15 OFFICE OFFICE

SD 11/1/19 SCHEMATIC DESIGN SCHEMATIC 11/1/19

185'-0" POTENTIAL 136' GATE SD 1/8/20 PLANNING RESUBMITTAL PLANNING 1/8/20 SD 40'

GATE

X

X 25 STALLS

SD 4/10/20 PLANNING RESUBMITTAL PLANNING 4/10/20 SD

4

BUILDING HEIGHT =22.0' HEIGHT BUILDING SD 8/25/20 PLANNING RESUBMITTAL PLANNING 8/25/20 SD FOOTPRINT AREA =23,146 S.F. =23,146 AREA FOOTPRINT

N 89

ONE STORY CONCRETE BUILDING CONCRETE STORY ONE

Ā

49'26" E 1201.09' AREA SD 10/22/20 PLANNING RESUBMITTAL PLANNING 10/22/20 SD

OFFICE OFFICE SD 12/10/20 PLANNING RESUBMITTAL PLANNING 12/10/20 SD

6

C L DOORS DOCK 92 POTENTIAL POTENTIAL C

L

DENSE

TREES N EWSTR"B

GENERAL INDUSTRIAL HEAVY INDUSTRIAL

N 89

SETBACK LINE

35' BUILDING

(PUBLIC STREET)

Ā

ZONING: HI

56'54" E 970.98'

CITY OF ONTARIO

BOUNDA

CITY OF RANCHO CUCAMONGA

ZONING: GI

BOUNDARY LINE

RY LINE

SETBACK LINE

45' BUILDING

1

X 1 X FT. 50 HEIGHT: MAX.

NUMBER OF STORIES: 1 1 STORIES: OF NUMBER

MAX. HEIGHT: 50 FT. FT. 50 HEIGHT: MAX.

CONSTRUCTION

3' SOUTH OF PL

CONSTRUCTION TYPE: III-B III-B TYPE: CONSTRUCTION

NUMBER OF STORIES: 1 1 STORIES: OF NUMBER ℄

(ULTIMATE R/W: 44') R/W: (ULTIMATE

OCCUPANCY: B/S-1 B/S-1 OCCUPANCY: DEDICATION EET STR CONSTRUCTION TYPE: III-B III-B TYPE: CONSTRUCTION

OCCUPANCY: B/S-1 B/S-1 OCCUPANCY: 40 TRAILERPOSITIONS 49 TRAILERPOSITIONS

EXISTING ELECTRICALSUB-STATION EXISTING RAILSPUR G.F.A.: 1,422,500 SF 1,422,500 G.F.A.:

G.F.A.: 752,500 SF 752,500 G.F.A.: 38 DOCKDOORS 51 DOCKDOORS

4 THSTRE

6 THSTRE MEZZANINE: 25,500 SF SF 25,500 MEZZANINE: MEZZANINE: 13,300 SF SF 13,300 MEZZANINE:

PROPERTY LINE1246.89'

EXISTING INDUSTRIALBUILDING SF 1,397,000 FOOTPRINT: PROPERTY LINE1201.91' FOOTPRINT: 739,200 SF SF 739,200 FOOTPRINT:

BUILDING HEIGHT =52.8' HEIGHT BUILDING

X WAREHOUSE BUILDING BUILDING WAREHOUSE 1,046'-0" FOOTPRINT AREA =1,377,219 S.F. =1,377,219 AREA FOOTPRINT

X BUILDING WAREHOUSE

SETBACK LINE

35' BUILDING

226 STALLS AREA OFFICE STORY TWO WITH

710'-0"

ONE STORY CONCRETE BUILDING CONCRETE STORY ONE SINGLE TENANT TENANT SINGLE

SETBACK LINE TENANT SINGLE [email protected] 45' BUILDING

CITY OF ONTA

BOUNDAR

CITY OF RANCH

NDARY BOUNDARY

Y LINE

CONTACT: BRENDAN KOLTER KOLTER BRENDAN CONTACT: RIO 1 BUILDING

O CUCAMONGA

LINE 2 BUILDING

26.4' 44' 34.6' 35' 11 4 4 11

TEL: 213-805-6667 213-805-6667 TEL: 44') R/W: (ULTIMATE STREET DEDICATION STREET

CONSTRUCTION

3' SOUTH OF PL

+/- LOS ANGELES, CA 90025 90025 CA ANGELES, LOS

42.8' 106' 66' 680'-0" 185'-0"

185'-0" ℄ 1,904'-0" 11100 SANTA MONICA BLVD., SUITE 700 700 SUITE BLVD., MONICA SANTA 11100

BRIDGE POINT RANCHO CUCAMONGA, LLC LLC CUCAMONGA, RANCHO POINT BRIDGE

SETBACK LINE

35' BUILDING

OWNER: 5

X X

[email protected] CONTACT: BRENDAN KOLTER KOLTER BRENDAN CONTACT:

SETBACK

45' BUILDING

TEL: 213-805-6667 213-805-6667 TEL: 44') R/W: (ULTIMATE

STREET DEDICATION STREET

LINE

LOS ANGELES, CA 90025 90025 CA ANGELES, LOS N 89

CITY OF RANCHO CUCAMONGA

Ā

56'54" E 970.98'

11100 SANTA MONICA BLVD., SUITE 700 700 SUITE BLVD., MONICA SANTA 11100

GATE BRIDGE POINT RANCHO CUCAMONGA, LLC LLC CUCAMONGA, RANCHO POINT BRIDGE CITY OF ONTARIO

APPLICANT:

T

AREA

GATE MEZZANINE

92 DOCK DOORS DOCK 92 CONSTRUCTION

SETBACK LINE

3' SOUTH OF PL

35' BUILDING

CITY OF ONT OFFICE

BOUNDARY LINE

CITY O

F RANCHO CUC W/ AREA

BOUNDARY LINE

℄

ARIO

X POTENTIAL X

32 STALLS

AMONGA OFFICE POTENTIAL 6

MEZZANINE AREA

OFFICE OFFICE

35 STALLS W/ AREA 4

POTENTIAL POTENTIAL OFFICE POTENTIAL

C GATE (ULTIMATE R/W: 44') R/W: (ULTIMATE C

L

L GATE STREET DEDICATION STREET 220'-0"

EV

EV 6 HC

N 89

Ā

56'36" E 275.03'

(34) 50' TRAILER POSITIONS TRAILER 50' (34) POSITIONS TRAILER 50' (90)

11 11

EV

EV

X STALLS 122 40 STALLS 40 104 STALLS 104 82'

SETBACK LINE

35' BUILDING

X

CONSTRUCTION

3' SOUTH OF PL

8'-0"H TUBE STEEL FENCE STEEL TUBE 8'-0"H SETBACK LINE FENCE STEEL TUBE 8'-0"H

℄

45' BUILDING 25' 20'

AILER " A " T E E R T S W E N TR

44' 66' 66' 44'

SETBACK LINE SETBACK SETBACK LINE SETBACK SETBACK LINE SETBACK SETBACK LINE SETBACK SETBACK LINE SETBACK SETBACK LINE SETBACK SETBACK LINE SETBACK

TBACK LINE TBACK SE

SETBACK LINE SETBACK SETBACK LINE SETBACK SETBACK LINE SETBACK

5' BUILDING 5' 5' BUILDING 5' 5' BUILDING 5' 5' BUILDING 5' 5' BUILDING 5' 5' BUILDING 5' 5' BUILDING 5' 5' BUILDING 5'

5' BUILDING 5' 5' BUILDING 5' 5' BUILDING 5'

PROPERTY LINE 3214.24' LINE PROPERTY

CALIFORNIA 849.87' 2408.72'

Ā MAP) PARCEL 14'33" E 3258.59' E 14'33" 0 N

CITY OF RANCHO CUCAMONGA, CUCAMONGA, RANCHO OF CITY LOT "A" (SEE (SEE "A" LOT

CITY OF ONTARI

BOUNDAR

CITY

12434 4TH STREET STREET 4TH 12434 OF RANC

BOUND

Y LINE

23 7

A 8

HO CUCAMONGA

O

RY

LINE INDUSTRIAL BUILDING INDUSTRIAL

EXISTING EXISTING EXISTING PRISION FACILITY PRISION EXISTING

48 SEATS 48 32 SEATS 32 SEATING PROVIDED SEATING 80 SEATS 80 RANCHO CUCAMONGA RANCHO

43 SEATS SEATS 43 28 SEATS SEATS 28 SEATING REQUIRED REQUIRED SEATING 71 SEATS SEATS 71

BRIDGE POINT POINT BRIDGE 1,000 SF SF 1,000 540 SF SF 540 SF PROVIDED PROVIDED SF 1,540 SF SF 1,540

1,000 SF SF 1,000 500 SF SF 500 SF REQUIRED REQUIRED SF 1,500 SF SF 1,500

EMPLOYEE OUTDOOR AREAS AREAS OUTDOOR EMPLOYEE

24 REQ. / 24 PROV. PROV. 24 / REQ. 24 14 REQ. / 14 PROV. PROV. 14 / REQ. 14 LONG TERM TERM LONG 38 REQ. / 38 PROV. PROV. 38 / REQ. 38

SL8 LUMINAIRE SPECIFICATION SHEETS SPECIFICATION LUMINAIRE SL8

ARCHITECTURE. 24 REQ. / 24 PROV. PROV. 24 / REQ. 24 14 REQ. / 14 PROV. PROV. 14 / REQ. 14 SHORT TERM TERM SHORT 38 REQ. / 38 PROV. PROV. 38 / REQ. 38

SL7 BLDG 2 WEST PHOTOMETRIC PHOTOMETRIC WEST 2 BLDG SL7 24. CONCRETE TILT-UP FIRE PUMP STRUCTURE - 15' HEIGHT, PAINTED TO COORDINATE W/ BUILDING BUILDING W/ COORDINATE TO PAINTED HEIGHT, 15' - STRUCTURE PUMP FIRE TILT-UP CONCRETE 24.

BICYCLE PARKING: PARKING: BICYCLE

SL6 BLDG 2 EAST PHOTOMETRIC PHOTOMETRIC EAST 2 BLDG SL6

ACCENTS TO MATCH BUILDING ARCHITECTURE. ARCHITECTURE. BUILDING MATCH TO ACCENTS

SL5 BLDG 1 SOUTHWEST PHOTOMETRIC PHOTOMETRIC SOUTHWEST 1 BLDG SL5

224 TRAILERS TRAILERS 224 89 TRAILERS TRAILERS 89 TRAILER PARKING PROVIDED: PROVIDED: PARKING TRAILER 313 TRAILERS TRAILERS 313 23. TYP. 8' HIGH PAINTED CONCRETE SCREEN WALL ELEVATION W/ ACCENT REVEALS AND PAINTED PAINTED AND REVEALS ACCENT W/ ELEVATION WALL SCREEN CONCRETE PAINTED HIGH 8' TYP. 23.

SL4 BLDG 1 NORTHWEST PHOTOMETRIC PHOTOMETRIC NORTHWEST 1 BLDG SL4

ELECTRICAL ROOM TO COMPLY WITH CALGREEN). SEE PROJECT DATA FOR SPACES REQUIRED. REQUIRED. SPACES FOR DATA PROJECT SEE CALGREEN). WITH COMPLY TO ROOM ELECTRICAL SL3 BLDG 1 SOUTHEAST PHOTOMETRIC PHOTOMETRIC SOUTHEAST 1 BLDG SL3

184 DOCKS DOCKS 184 89 DOCKS DOCKS 89 DOCK LOADING POSITIONS: POSITIONS: LOADING DOCK 273 DOCKS DOCKS 273

22. LONG TERM MOUNTED BICYCLE RACK. (NOTE LONG TERM RACK TO BE INSTALL ADJACENT TO TO ADJACENT INSTALL BE TO RACK TERM LONG (NOTE RACK. BICYCLE MOUNTED TERM LONG 22.

SL2 BLDG 1 NORTHEAST PHOTOMETRIC PHOTOMETRIC NORTHEAST 1 BLDG SL2

SL1 SITE LIGHTING OVERALL PLAN PLAN OVERALL LIGHTING SITE SL1

21. CONCRETE LANDING AND BICYCLE RACK FOR BIKES. SEE PROJECT DATA FOR SPACES REQUIRED. REQUIRED. SPACES FOR DATA PROJECT SEE BIKES. FOR RACK BICYCLE AND LANDING CONCRETE 21. 478 STALLS STALLS 478 268 STALLS STALLS 268 PROVIDED PARKING: PARKING: PROVIDED 746 STALLS STALLS 746 4TH S T R E E T T E E R T S 4TH

BY LANDSCAPE, SEE LANDSCAPE PLAN. PLAN. LANDSCAPE SEE LANDSCAPE, BY L-6 LANDSCAPE PLANTING PLAN PLAN PLANTING LANDSCAPE L-6

478 STALLS STALLS 478 268 STALLS STALLS 268 TOTAL TOTAL 746 STALLS STALLS 746

20. ALL UTILITY STRUCTURES SUCH AS TRANSFORMERS AND BACK FLOW DEVICES SHALL BE SCREENED SCREENED BE SHALL DEVICES FLOW BACK AND TRANSFORMERS AS SUCH STRUCTURES UTILITY ALL 20.

L-5 LANDSCAPE PLANTING PLAN PLAN PLANTING LANDSCAPE L-5

348 STALLS STALLS 348 174 STALLS STALLS 174 > 40K SF @ 1/4000 1/4000 @ SF 40K >

PROFESSIONAL SEALS PROFESSIONAL

L-4 LANDSCAPE PLANTING PLAN PLAN PLANTING LANDSCAPE L-4

19. PROPOSED ONSITE FIRE HYDRANT LOCATIONS. LOCATIONS. HYDRANT FIRE ONSITE PROPOSED 19. 10 STALLS STALLS 10 10 STALLS STALLS 10 20K - 40K SF @ 1/2000 1/2000 @ SF 40K - 20K

L-3 LANDSCAPE PLANTING PLAN PLAN PLANTING LANDSCAPE L-3

20 STALLS STALLS 20 20 STALLS STALLS 20 1-20K SF @ 1/1000 1/1000 @ SF 1-20K

18. NEW CURB AND GUTTER PER CITY STANDARD. STANDARD. CITY PER GUTTER AND CURB NEW 18.

L-2 LANDSCAPE PLANTING PLAN PLAN PLANTING LANDSCAPE L-2

WAREHOUSE WAREHOUSE

L-1 LANDSCAPE PLANTING PLAN PLAN PLANTING LANDSCAPE L-1

100 STALLS STALLS 100 64 STALLS STALLS 64 OFFICE @ 1/250 1/250 @ OFFICE

17. EXISTING DRIVE WAY APRON TO BE REMOVED. REMOVED. BE TO APRON WAY DRIVE EXISTING 17.

L-0 LANDSCAPE PLANTING OVERALL OVERALL PLANTING LANDSCAPE L-0

REQUIRED PARKING: PARKING: REQUIRED

16. PROPOSED SEWER LATERAL FROM PUBLIC RIGHT OF WAY SERVING BOTH BUILDINGS 1 & 2. 2. & 1 BUILDINGS BOTH SERVING WAY OF RIGHT PUBLIC FROM LATERAL SEWER PROPOSED 16.

AUTO PARKING: PARKING: AUTO

8 EROSION CONTROL DETAILS DETAILS CONTROL EROSION 8

(INCLUDES PARKWAYS) (INCLUDES

ON 3 SIDES, 3' CLEAR TO THE ASSEMBLY. SEE PLAN VIEW. VIEW. PLAN SEE ASSEMBLY. THE TO CLEAR 3' SIDES, 3 ON

7 EROSION CONTROL PLAN PLAN CONTROL EROSION 7

APN: 0229-283-50, 0229-283-51 0229-283-50, APN: BACKFLOWS AND DETECTOR CHECK ASSEMBLIES SHALL BE SCREENED BY A 3' MIN. / 4' MAX. CMU WALL WALL CMU MAX. 4' / MIN. 3' A BY SCREENED BE SHALL ASSEMBLIES CHECK DETECTOR AND BACKFLOWS 201,800 SF SF 201,800 362,900 SF SF 362,900 161,100 SF SF 161,100 AREA: AREA:

1-6 DEMOLITION PLAN SHEETS SHEETS PLAN DEMOLITION 1-6

15. PROPOSED LOCATION FOR FIRE WATER METER AND 2" SUPPLY LINE INTO BUILDING. ABOVE GROUND GROUND ABOVE BUILDING. INTO LINE SUPPLY 2" AND METER WATER FIRE FOR LOCATION PROPOSED 15.

8.7% 8.7% 10.00% 10.00% 12.2% 12.2% COVERAGE: COVERAGE:

ASSESSOR'S NUMBERS: ASSESSOR'S

PROVIDED: PROVIDED:

AND NUMBER OF SEATS. SEATS. OF NUMBER AND

1-3 CONCEPTUAL STREET IMPROVEMENT PLANS PLANS IMPROVEMENT STREET CONCEPTUAL 1-3

LANDSCAPE: LANDSCAPE: 14. PROVIDE BREAK AREA / LUNCH PATIO WITH SEATING. SEE PROJECT DATA ON A1-0 FOR MIN SF AREA AREA SF MIN FOR A1-0 ON DATA PROJECT SEE SEATING. WITH PATIO LUNCH / AREA BREAK PROVIDE 14.

1-2 CONCEPTUAL RAIL PLANS PLANS RAIL CONCEPTUAL 1-2 SIDEWALK. MAX SLOPE OF SURFACE WALK IN THE DIRECTION OF TRAVEL 4.9%. MAX CROSS SLOPE 2%. 2%. SLOPE CROSS MAX 4.9%. TRAVEL OF DIRECTION THE IN WALK SURFACE OF SLOPE MAX SIDEWALK.

.573 .573 0.546 0.546 .507 .507 GROSS F.A.R.: F.A.R.: GROSS

DISTRICT DECEMBER 2016. DECEMBER DISTRICT

PUBLIC SIDEWALK & PARKING STALLS TO PRIMARY BUILDING ENTRANCE - CONSTRUCT NEW CONCRETE CONCRETE NEW CONSTRUCT - ENTRANCE BUILDING PRIMARY TO STALLS PARKING & SIDEWALK PUBLIC

56.24% 56.24% 53.66% 53.66% 49.79% 49.79% GROSS COVERAGE: COVERAGE: GROSS 3. SIGNAGE STANDARDS PER RANCHO CUCAMONGA FIRE PROTECTION PROTECTION FIRE CUCAMONGA RANCHO PER STANDARDS SIGNAGE 3.

13. DASHED LINE INDICATES : NEW 5'-0" WIDE SURFACE WALK ACCESSIBLE PATH OF TRAVEL FROM FROM TRAVEL OF PATH ACCESSIBLE WALK SURFACE WIDE 5'-0" NEW : INDICATES LINE DASHED 13.

20-21 RETAINING WALL PROFILES PROFILES WALL RETAINING 20-21

SITE AREA SITE

18 - 19 PRELIMINARY SITE AND DRAINAGE MAP MAP DRAINAGE AND SITE PRELIMINARY 19 - 18

12. ACCESSIBLE PARKING STALLS 9' X 18'-0" MIN. MIN. 18'-0" X 9' STALLS PARKING ACCESSIBLE 12. 1,397,500 SF SF 1,397,500 2,119,900 SF SF 2,119,900 736,500 SF SF 736,500 WAREHOUSE AREA AREA WAREHOUSE

2. ALL GATES SHALL BE INSTALLED PER THE FIRE DISTRICT REQUIREMENTS. REQUIREMENTS. DISTRICT FIRE THE PER INSTALLED BE SHALL GATES ALL 2.

SUBJECT SUBJECT

14 - 17 CONCEPT STORM DRAIN PLAN PLAN DRAIN STORM CONCEPT 17 - 14

25,000 SF SF 25,000 32,600 SF SF 32,600 16,000 SF SF 16,000 OFFICE AREA AREA OFFICE

11. 14' X 50' TRUCK TRAILER PARKING AREA. AREA. PARKING TRAILER TRUCK 50' X 14' 11.

8 - 13 CONCEPT SITE UTILITY PLAN PLAN UTILITY SITE CONCEPT 13 - 8

BUILDING AREA BY USE: USE: BY AREA BUILDING WEIGHT CAPACITY: 80,000 LBS. LBS. 80,000 CAPACITY: WEIGHT

2 - 7 CONCEPT GRADING PLAN PLAN GRADING CONCEPT 7 - 2

10. PROPOSED TRANSFORMER LOCATION. LOCATION. TRANSFORMER PROPOSED 10.

OUTSIDE RADIUS: 46 FT. FT. 46 RADIUS: OUTSIDE

1 CONCEPT GRADING TITLE SHEET SHEET TITLE GRADING CONCEPT 1

1,422,500 SF SF 1,422,500 2,175,000 SF SF 2,175,000 752,500 SF SF 752,500 GROSS FLOOR AREA: AREA: FLOOR GROSS INSIDE RADIUS: 20 FT. FT. 20 RADIUS: INSIDE

9. PROPERTY LINES. LINES. PROPERTY 9.

CONSULTANT

25,500 SF SF 25,500 38,800 SF SF 38,800 13,300 SF SF 13,300 MEZZANINE (WHSE OR OFFICE): OFFICE): OR (WHSE MEZZANINE

MIN. CLEARANCE: 14'-6" 14'-6" CLEARANCE: MIN.

2A3-3P BUILDING 2 EXTERIOR RENDERINGS RENDERINGS EXTERIOR 2 BUILDING 2A3-3P

1,397,000 SF SF 1,397,000 2,136,200 SF SF 2,136,200 739,200 SF SF 739,200 FOOTPRINT AREA: AREA: FOOTPRINT MIN. WIDTH: 26 FEET FEET 26 WIDTH: MIN. 8. NEW 8'-0" HIGH BLACK TUBE STEEL FENCE. FENCE. STEEL TUBE BLACK HIGH 8'-0" NEW 8.

2A3-2P BUILDING 2 EXTERIOR ELEVATIONS ELEVATIONS EXTERIOR 2 BUILDING 2A3-2P

BUILDING AREA AREA BUILDING 1. FIRE ACCESS LANES SHALL COMPLY WITH THE FOLLOWING: FOLLOWING: THE WITH COMPLY SHALL LANES ACCESS FIRE 1.

2A3-1P BUILDING 2 EXTERIOR ELEVATIONS ELEVATIONS EXTERIOR 2 BUILDING 2A3-1P

SECTIONS. SECTIONS.

FX 949-341-0922 FX

FIRE DEPT. GENERAL NOTES: GENERAL DEPT. FIRE 7. LOCATION OF 8'-0" HIGH TRASH AND RECYCLABLE BINS. SEE SHEET A2-1 FOR ELEVATION AND AND ELEVATION FOR A2-1 SHEET SEE BINS. RECYCLABLE AND TRASH HIGH 8'-0" OF LOCATION 7.

2A2-3P BUILDING 2 ROOF PLAN PLAN ROOF 2 BUILDING 2A2-3P

2,309,390 SF SF 2,309,390 3,626,066 SF SF 3,626,066 1,316,676 SF SF 1,316,676 NET SITE AREA AREA SITE NET

T 949-341-0920 949-341-0920 T

2A2-2P BUILDING 2 FLOOR PLAN ENLARGEMENTS ENLARGEMENTS PLAN FLOOR 2 BUILDING 2A2-2P

2,484,027 SF SF 2,484,027 3,981,084 SF SF 3,981,084 1,484,596 SF SF 1,484,596 GROSS SITE AREA AREA SITE GROSS 6. PRIMARY BUILDING ENTRANCE W/ DECORATIVE CONCRETE ENTRY WALK. WALK. ENTRY CONCRETE DECORATIVE W/ ENTRANCE BUILDING PRIMARY 6.

2A2-1P BUILDING 2 FLOOR PLAN PLAN FLOOR 2 BUILDING 2A2-1P

BLDG 1 1 BLDG TOTAL TOTAL BLDG 2 2 BLDG

Irvine, CA 92618 92618 CA Irvine, PLAN. PLAN. 1A3-3P BUILDING 1 EXTERIOR RENDERINGS RENDERINGS EXTERIOR 1 BUILDING 1A3-3P

5. FULLY IRRIGATED LANDSCAPE AREA BOUNDED BY 6" CONCRETE CURB - SEE CONCEPT LANDSCAPE LANDSCAPE CONCEPT SEE - CURB CONCRETE 6" BY BOUNDED AREA LANDSCAPE IRRIGATED FULLY 5.

1A3-2P BUILDING 1 EXTERIOR ELEVATIONS ELEVATIONS EXTERIOR 1 BUILDING 1A3-2P AVE. LANDSCAPE SETBACK: 45 FEET FROM CURBFACE FROM FEET 45 SETBACK: LANDSCAPE AVE. 15231 Alton Parkway, Suite 100 100 Suite Parkway, Alton 15231 NET SITE AREA FOR PROPOSED DEVELOPMENT: PROPOSED FOR AREA SITE NET 3,626,066 SF / 83.24 AC 83.24 / SF 3,626,066

1A3-1P BUILDING 1 EXTERIOR ELEVATIONS ELEVATIONS EXTERIOR 1 BUILDING 1A3-1P

PARKING SETBACK: 45 FEET FROM CURBFACE CURBFACE FROM FEET 45 SETBACK: PARKING LOT A REMNANT LOT (SEE PARCEL MAP) MAP) PARCEL (SEE LOT REMNANT A LOT 5,031 SF / 0.11 AC AC 0.11 / SF 5,031

4. 7" THICK CONCRETE YARD W/ GRADE LEVEL TRUCK DOORS AND AUTO PARKING AREAS. AREAS. PARKING AUTO AND DOORS TRUCK LEVEL GRADE W/ YARD CONCRETE THICK 7" 4.

1A2-3P BUILDING 1 ROOF PLAN PLAN ROOF 1 BUILDING 1A2-3P BUILDING SETBACK: 45 FEET FROM CURBFACE CURBFACE FROM FEET 45 SETBACK: BUILDING

PROPOSED STREET "B": "B": STREET PROPOSED 78,457 SF / 1.80 AC AC 1.80 / SF 78,457

SHALL BE EQUIPPED FOR FUTURE EV CHARGING CAPACITY. CAPACITY. CHARGING EV FUTURE FOR EQUIPPED BE SHALL

1A2-2P BUILDING 1 FLOOR PLAN ENLARGEMENTS ENLARGEMENTS PLAN FLOOR 1 BUILDING 1A2-2P

PROPOSED STREET "A": "A": STREET PROPOSED

212,968 SF / 4.89 AC AC 4.89 / SF 212,968

Office of Architectural Design Architectural of Office

SPACES PROVIDED PER BUILDING. A MINIMUM OF 6% OF ALL PARKING SPACES PROVIDED PER BUILDING BUILDING PER PROVIDED SPACES PARKING ALL OF 6% OF MINIMUM A BUILDING. PER PROVIDED SPACES

1A2-1P BUILDING 1 FLOOR PLAN PLAN FLOOR 1 BUILDING 1A2-1P 3. SETBACK REQUIREMENTS: REQUIREMENTS: SETBACK 3. EXISTING 6TH STREET AREA: AREA: STREET 6TH EXISTING 58,562 SF / 1.34 AC AC 1.34 / SF 58,562

REDUCED TO 9' X 17' W/ 1'-0" OVERHANG. STRIPING PER CITY STANDARDS. MINIMUM 8% OF ALL PARKING PARKING ALL OF 8% MINIMUM STANDARDS. CITY PER STRIPING OVERHANG. 1'-0" W/ 17' X 9' TO REDUCED

A1-4P BUILDING 2 ENLARGED SITE PLAN PLAN SITE ENLARGED 2 BUILDING A1-4P

LEGAL DESCRIPTION FEE: FEE: DESCRIPTION LEGAL 3,981,084 SF / 91.39 AC AC 91.39 / SF 3,981,084 3. TYPICAL LOW EMITTING / FUEL EFFICIENT / CARPOOL / VANPOOL PARKING STALL - 9' X 18'. MAY BE BE MAY 18'. X 9' - STALL PARKING VANPOOL / CARPOOL / EFFICIENT FUEL / EMITTING LOW TYPICAL 3.

6 TH S T R E E T T E E R T S TH 6

RGA PLAN SITE ENLARGED 1 BUILDING A1-3P

2. PARALLEL STALLS ARE 9' X 24'. 24'. X 9' ARE STALLS PARALLEL 2. SITE AREA: AREA: SITE

CITY STANDARDS. STANDARDS. CITY

A1-2P WALL AND FENCE PLAN PLAN FENCE AND WALL A1-2P

PROPOSED ZONE: ZONE: PROPOSED GENERAL INDUSTRIAL (GI) (GI) INDUSTRIAL GENERAL

2. TYPICAL PARKING STALL - 9' X 18'. MAY BE REDUCED TO 9' X 17' W/ 1'-0" OVERHANG. STRIPING PER PER STRIPING OVERHANG. 1'-0" W/ 17' X 9' TO REDUCED BE MAY 18'. X 9' - STALL PARKING TYPICAL 2.

A1-1P EXISTING REFERENCE SITE PLAN PLAN SITE REFERENCE EXISTING A1-1P 1' LANDSCAPE OVERHANG TYPICAL EXCEPT AT ACCESSIBLE STALLS. STALLS. ACCESSIBLE AT EXCEPT TYPICAL OVERHANG LANDSCAPE 1'

EXISTING ZONE: ZONE: EXISTING GENERAL INDUSTRIAL (GI) AND HEAVY INDUSTRIAL (HI) (HI) INDUSTRIAL HEAVY AND (GI) INDUSTRIAL GENERAL

A1-0P SITE PLAN & PROJECT DATA DATA PROJECT & PLAN SITE A1-0P 1. TYPICAL 90 DEG. PARKING STALLS SIZES ARE 9'W X 18' LONG INCLUDING A A INCLUDING LONG 18' X 9'W ARE SIZES STALLS PARKING DEG. 90 TYPICAL 1. GENERAL PLAN: PLAN: GENERAL GENERAL INDUSTRIAL & HEAVY INDUSTRIAL INDUSTRIAL HEAVY & INDUSTRIAL GENERAL 1. PROPOSED PAINTED CONCRETE TILT-UP 40' CLEAR INDUSTRIAL BUILDING. BUILDING. INDUSTRIAL CLEAR 40' TILT-UP CONCRETE PAINTED PROPOSED 1.

VICINITY MAP VICINITY KEYNOTES: SHEET INDEX SHEET SITE PLAN GENERAL NOTES: GENERAL PLAN SITE

LEGAL DESCRIPTION: LEGAL PROJECT DATA PROJECT 00

2.2 CVWD Service Area CVWD serves a 47-square mile area which includes the City of Rancho Cucamonga, portions of the cities of Upland, Ontario, and Fontana, and some unincorporated area of San Bernardino County. CVWD’s 2015 UWMP indicates that it currently provides water to a population of approximately 200,460 customers with over 48,000 water connections.

The approximately 91.4-gross-acre Bridge Point Rancho Cucamonga development project is located within current CVWD and City of Rancho Cucamonga service boundaries.

7

3 Cucamonga Valley Water District Water Supplies

CVWD’s 2015 UWMP provides information regarding its water supply sources. While the 2015 UWMP makes projections only through the year 2035, the Water Supply Assessment is required to project out 20 years. To facilitate this, CVWD extended the projections to 2040 in recent documents where water supply figures beyond 2015 were cited based on real data as supplied by the District. Projection figures to Year 2040 (from 2035) are based on the estimates presented in the 2015 UWMP. The District does not anticipate large development projects or significant growth beyond Year 2035, at which time the District’s service area is expected to be essentially built-out. CVWD’s potable water supply sources include groundwater from the Chino Basin and the Cucamonga Basin, surface water from three (3) surface water sources, and imported water purchased from the Inland Empire Utilities Agency (IEUA). The District has rights to six sources of canyon/surface water supplies; however, only three of the sources are currently utilized. In addition, CVWD has the ability to receive potable water during emergencies through interconnections with the Fontana Water Company and the City of Upland. CVWD water supply sources are shown in Table 2. The historical and projected volumes of water from each source are shown in Table 3.

Table 2: Water Supply Sources EVER SUPPLY AFY ENTITLEMENT RIGHT CONTRACT USED IEUA Tier I Wholesale 28,369 Contract YES IEUA Tier II Wholesale Contract, no official volumetric limit. YES Chino Basin Groundwater (AFY) 14,387 — X — YES Cucamonga Basin Groundwater (AFY) 15,471 — X — YES Cucamonga Canyon Surface Water (AFY) 3,650 — X — YES Deer Canyon Surface Water Limited by Facilities — X — YES ~2,570 Max Historical Day/East Canyon Surface Water Limited by Facilities — X — YES ~9,000 Max Historical Source: 2015 Cucamonga Valley Water District UWMP.

8

Table 3: Water Supply Quantities, AFY HISTORICAL PROJECTED SUPPLY 2005 2010 2015 2020 2025 2030 2035 2040* IEUA Tier I Wholesale 28,369 28,369 28,369 28,369 28,369 28,109 20,368 13,195 IEUA Tier II Wholesale 3,236 4,704 6,932 1,509 1,509 Chino Basin Groundwater 13,328 19,831 18,760 12,755 13,687 13,859 19,282 19,282 Cucamonga Basin Groundwater 7,518 3,848 8,439 10,000 10,000 10,000 10,000 10,000 Cucamonga Canyon Surface Water 0 46 363 1,000 1,000 1,000 1,000 1,000 Day/East Canyon Surface Water 6,374 3,745 498 3,400 3,400 3,400 3,400 3,400 Deer Canyon Surface Water 603 162 189 140 140 140 140 140 TOTAL 55,932 48,001 41,443 58,900 61,300 63,700 63,700 63,700 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. * Based on information provided by CVWD staff.

CVWD’s water production capacity based on the CVWD 2015 UWMP is shown in Table 4 below. Water sources include groundwater wells, surface water, and MWD Tier I/Tier II purchases.

Table 4: CVWD Water Production Capacity, AFY YEAR SOURCE 2020 2025 2030 2035 2040* Groundwater 45,252 45,252 45,252 45,252 45,252 Canyon Water 2,270 2,270 2,270 2,270 2,270 Imported Water 31,605 33,073 35,301 29,878 29,878 Total Production Capacity 79,127 80,595 82,823 77,400 77,400 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. * Based on information provided by CVWD staff.

CVWD’s water system includes disinfection facilities and three treatment facilities to treat imported water from the SWP and water from the Cucamonga Canyon and Day/East Canyon sources. These facilities allow CVWD to treat and distribute potable water which complies with all state and federal safe drinking water regulations. Disinfection, but not treatment, is required for the water produced from Deer Canyon through Hermosa Tunnel because it is considered to be groundwater and meets State requirements.

3.1 Wholesale Water Supplies CVWD purchases imported water from the Metropolitan Water District of Southern California (MWD). MWD is the largest wholesaler for domestic and municipal uses in California. MWD owns and operates the Colorado River Aqueduct (CRA) and is a contractor for water from the California State Water Project (SWP). MWD has 26 member agencies including 11 water districts, one county water authority, and 14 cities. CVWD purchases water from MWD through the Inland Empire Utilities Agency (IEUA), which is a member agency of MWD.

CVWD purchases SWP water supplies from IEUA using two separate connections. Historically, CVWD had a connection to receive Colorado River (CRA) water from IEUA, however, the connection was removed due to the lack of treatment capabilities at the connection.

9

IEUA also provides recycled water to its member agencies for direct non-potable reuse and groundwater recharge. Recycled water may be considered as a source of supply for the Project because recycled water pipelines currently serve non-potable uses in the southeast region of CVWD’s service area, including in the City of Rancho Cucamonga. Recycled water is available for use at the Project site, and will be used for outdoor irrigation.

3.1.1 Wholesale Quantities Received in Prior Years Imported water purchases are CVWD’s most significant water source and can range from 35-65 percent of the District’s water. The average supply imported of water by percent from years 2006-2015 was 46.6 percent.

CVWD purchases SWP water from IEUA and does not purchase CRA water. Two separate MWD/IEUA connections serve CVWD - an 18-inch connection (CB7) and a 60-inch connection (CB16). The amount of water imported by CVWD for Years 2000 to year 2018 is shown in Table 5.

Table 5: Wholesale Water Imports CVWD IMPORTED WATER SUPPLY (AF) CB16 Year CB7 Connection Connection Total 2005 0.1 28,108.5 28,108.6 2006 129.9 29,188.6 29,318.5 2007 1,085.5 34,955.2 36,040.7 2008 32.9 28,518.0 28,550.9 2009 706.4 19,392.6 20,099.0 2010 21.9 20,346.0 20,368.0 2011 0.0 20,899.6 20,899.6 2012 874.2 27,398.9 28,273.1 2013 16.0 25,747.6 25,763.6 2014 1,743.1 25,422.4 27,165.5 2015 71.4 13,123.4 13,194.8 2016* 155.0 10,919.0 11,074.0 2017* 0.0 28,767.7 28,767.7 2018* 0.0 26,872.2 26,872.2 2019* 0.0 18,667.9 18,667.9 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. * Based on information provided by CVWD staff.

CVWD has the capacity to accept up to 71 MGD of MWD imported SWP water from IEUA for treatment and distribution. CVWD’s Royer-Nesbit Water Treatment Plant is currently not in operation, and the Lloyd Michael Water Treatment Plant can accept up to 60 MGD.

CVWD may purchase as much untreated imported SWP water as it needs from IEUA. Under normal conditions, CVWD has a Tier I allocation of imported water from MWD equal to the historical average of 10

CVWD’s total imported water purchased over a 10-year period. CVWD has a Tier I allocation of 28,369 AFY, and projects to use the full allocation by year 2020. Imported water above CVWD’s Tier I allocation shall be MWD replenishment water in the Chino Basin or Tier II imported water. Any water purchased by CVWD over the Tier I allocation is charged at a higher rate, Tier II. CVWD can elect to purchase Tier II water from IEUA. The IEUA import projections for CVWD are shown in Table 6.

Table 6: IEUA Import Projections YEAR SOURCE 2020 2025 2030 2035 2040* Tier I imported water (AFY) 28,369 28,369 28,369 28,369 28,369 Tier II imported water or replenishment water (AFY) 3,236 4,704 6,932 1,509 1,509 Total Imported Water (AFY) 31,605 33,073 35,301 29,878 29,878 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. * Based on information provided by CVWD staff.

3.1.2 Imported Water Reliability MWD contracts with the State of California, through the SWP, for the delivery of northern California water through the California Aqueduct. The SWP is a water storage and delivery system maintained and operated by the California Department of Water Resources (DWR). The SWP is a statewide water conveyance system which stores water in Northern and Central California and conveys water (including through the Sacramento-San Joaquin Delta region) to 29 water agencies throughout the State. The SWP has delivered water since the 1960’s through a network of aqueducts, pumping stations and power plants.

The San Francisco Bay -Sacramento River Delta area (Bay-Delta) is a part of the SWP water delivery system. The reliability of the Bay-Delta to deliver water may be impacted by potential risks associated with endangered species, earthquakes, levee failure, and climate change. In order to mitigate these potential risks, State and federal resources and environmental protection agencies and a broad range of stakeholders are involved in a multiyear planning process referred to as the CALFED process to develop programs to greatly improve the capacity and reliability of the SWP and the environmental conditions of the Bay-Delta. The Bay- Delta cooperating agencies approved a Record of Decision in August 2000 for a Programmatic Environmental Impact Report/Impact Statement for a multi-year improvement program. The improvement program includes projects related to DWR’s SWP conveyance capacity, water quality, and operation of the SWP. Those programs are undergoing thorough federal and state environmental review.

A number of distinct species of fish, including the Delta Smelt, that either reside in or migrate through the Bay-Delta are listed as either endangered or threatened under the Federal Endangered Species Act. These listed species, as well as their designated critical habitat, receive protections under the endangered species protection laws, as well as under other environmental statutes and regulations.

Beginning in 2006, Governor Arnold Schwarzenegger established the Delta Vision and Delta Vision “Blue Ribbon” Task Force to identify strategies and actions to manage and achieve a sustainable ecosystem for the Sacramento-San Joaquin Delta. The Delta Vision Task Force released a strategic plan in 2008 to protect environmental resources and provide a reliable water supply. Coordination, communication and action between the Delta Vision Task Force and state agencies are essential to the success of improving the Delta.

11

As described in greater detail below, the federal wildlife agencies (the United States Fish and Wildlife Service [FWS] and the National Marine Fisheries Services [NMFS]) have each issued biological opinions and “reasonable and prudent alternatives” which have the effect of placing operational constraints on the SWP and the Central Valley Project (CVP) to protect these listed fish and their habitats, and limit the timing and diversion of water supplies from the Delta. In addition, the California Department of Fish and Wildlife has issued permits under the California Endangered Species Act imposing similar constraints to SWP and CVP operations.

On December 15, 2008, FWS issued a biological opinion to the Bureau of Reclamation and the California Department of Water Resources, as the respective operators of the CVP and SWP, to reduce the impacts of water project operations on delta smelt and other species within the jurisdiction of FWD. NMFS also issued a biological opinion on June 4, 2009 related to the long-term operations of the CVP and SWP on salmonid (salmon and steelhead) migrating through the Delta that are under the jurisdiction of NMFS. In order to minimize “taking” listed species and avoid adverse impact to the species’ critical habitat, the biological opinions each require the water projects to operate under a “reasonable and prudent alternative.” Ultimately, the federal Ninth Circuit Court of Appeals upheld both biological opinions as valid.

As compared with historical volumes of diversions of Delta water by the SWP, DWR’s implementation of the requirements of the two biological opinions negatively impacted SWP deliveries post 2008 to all of DWR’s contractors, including those made to Metropolitan. Between 2008 and 2014, Metropolitan determined implementation of the biological opinions resulted in a combined loss of 3.0 million acre-feet (MAF) to its water supplies, as compared with historical delivery amounts. In turn, the volume of water delivered by Metropolitan to its member agencies was also concomitantly reduced.

California WaterFix (CWF) and California EcoRestore, formerly referred to as the Bay Delta Conservation Plan (BDCP), were previously proposed by state, federal, and local water agencies to make SWP system operation improvements, including some related to restoration and protection of the Delta ecosystem and contributing watersheds. The CWF program proposed to construct and operate new water distribution facilities designed to be more environmentally friendly than the previous system configuration. The program would have included water delivery upgrades, river flow improvement, and habitat restoration and protection. It was anticipated that California EcoRestore would lead to the restoration of at least 30,000 acres of the Delta (or upstream). However, the Governor ended the CWF program and announced a new approach to modernize Delta Conveyance through a single-tunnel alternative. The Governor released Executive Order 10-19 which directed state agencies to assess the new planning for the single-tunnel project. DWR then withdrew all CWP project approvals and permit applications, but any such revisions would still involve the construction and operation of new water distribution facilities designed to stabilize and protect Delta water supplies.

On January 15, 2020 DWR issued a Notice of Preparation (NOP) for the environmental work on the single- tunnel project which started the scoping comment phase. The scoping comment period ended April 17, 2020. DWR will be considering the comments when the Environmental Impact Report is prepared. The draft EIR is expected to be out for review and comment by mid-2021. The final EIR/EIS is expected to be released by late 2023.

The Delta Conveyance Project Authority has been established for the design and construction of the DCP. A Delta Conveyance Financing Authority has been established to develop the financing. The DCP is anticipated to be funded by revenue bonds issued by the State or a Joint Powers Financing Agency with payment by 12

State Water Contractors south of the Delta through their existing contracts with the DWR – extended as needed into the future. In addition to other federal, State and local permits, DCP requires changes to the water rights permits for the State Water Project (SWP) Debt Service taxes. The DCP is not expected to be operational until Year 2035.

DWR’s “State Water Project Delivery Capability Report 2019 (August 2020)” states that the long-term average delivery reliability of SWP water is 58 percent. The Report incorporates future impacts on water deliveries as a result of the future effects of climate change, anticipated changes in Sacramento River basin land uses and potential limited pumping of the SWP to protect salmon, smelt, and other species in the Sacramento-San Joaquin Delta and Central Valley areas. This includes operational restrictions placed on the SWP from biological opinions issued by the U.S. Fish and Wildlife Service (USFWS) in December 2008 and the National Marine Fisheries Service (NMFS) in June 2009 governing the SWP and Central Valley Project (CVP, a Federal water storage and conveyance facility) operations. Subsequently, a U.S. District Court Judge remanded the biological opinions to the USFWS and NMFS for further review and analysis. The long-term impact of these issues cannot be fully quantified at this time. DWR plans to develop additional water supply facilities in order for the SWP to deliver contracted water beyond historical delivery quantities.

While many of the specific assumptions on SWP operations described in the 2017 DCR remain the same in the update for 2019, notable changes include the amendment to the Coordinated Operation Agreement (COA) originally signed in 1986; modeling representation of the Old and Middle River operational criteria, and the CVP and SWP operational updates. The COA establishes the shared responsibility for each of the SWP and CVP to meet water quality and regulatory standards. A joint review of the 1986 agreement was conducted, and DWR and the Bureau of Reclamation agreed to the COA Addendum to reflect the current regulatory environment and operations of the projects.

SWP deliveries have decreased since 2005, with much of the decrease occurring in 2019. This is primarily due to the amended COA with accompanying project operation changes which reduced SWP exports (deliveries) and increased CVP exports, and to a more conservative operation of the SWP’s Lake Oroville. Most notable updates include a reduction of Table A water (total MWD contractor allocations) from 2,571 TAF per year to 2,414 TAF per year, and the likelihood of Article 21 (supplemental) deliveries being greater than 20 TAF per year has increased by 27 percent.

MWD’s Integrated Resources Plan (IRP) identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full-service demands through the attainment of regional targets set for conservation, local supplies, SWP supplies, Colorado River supplies, groundwater banking and water transfers. The 2015 update to the IRP describes an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: (1) achieve additional conservation savings, (2) develop additional local water supplies, (3) maintain Colorado River Aqueduct supplies, (4) stabilize SWP supplies, and (5) maximize the effectiveness of storage and transfer. MWD’s 2015 IRP Update has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region will have adequate water supplies to meet long-term future demands.

In May 2016, MWD adopted its 2015 UWMP in accordance with state law. The resource targets included in the preceding 2015 IRP Update serve as the foundation for the planning assumptions used in the 2015 13

UWMP. MWD’s 2015 UWMP contains a water supply reliability assessment that includes a detailed evaluation of the supplies necessary to meet demands over a 20-year period in average, single-dry, and multiple-dry year periods.

On October 21, 2019, the U.S. Fish and Wildlife Service (USFWS) and National Marine Fisheries Service (NMFS) each issued Biological Opinions (BiOps) for the long-term coordinated operation of the federal CVP and the SWP, pursuant to section 7 of the federal Endangered Species Act (ESA). The 2019 BiOps replace a 2008 USFWS BiOp and a 2009 NMFS BiOp. On December 19, 2019, the Bureau of Reclamation (Reclamation) issued its final Environmental Impact Statement (EIS) proposing to adopt the 2019 BiOps, over the objections of environmental groups, the California Attorney General, the California Natural Resources Agency, and other agencies. In February 2020, Reclamation issued its final Record of Decision on the coordinated long- term operation of the CVP and SWP, adopting the 2019 BiOps.

In general, a significant feature of the new 2019 BiOps is the linking of restrictions on CVP and SWP water delivery operations more closely to real-time presence of ESA-listed fish species (e.g., Delta smelt) near CVP and SWP water delivery facilities, instead of relying on general calendar periods when such fish historically have been proximate to CVP and SWP facilities. Such an approach may enhance SWP water supply availability to SWP contractors such as MWD compared to operations under the existing 2008 and 2009 BiOps while also providing more effective protection for species.

On November 21, 2019, DWR issued a Draft EIR for Long-Term Operation of the California SWP that, similar to the federal biological opinions, allows for greater flexibility in managing the SWP based on real-time management. In December 2019, several environmental groups filed a complaint for declaratory and injunctive relief in the U.S. District Court for the Northern District of California, challenging the 2019 BiOps under the Administrative Procedure Act. Plaintiffs are requesting that the 2019 BiOps be withdrawn and that USFWS and NMFS be enjoined from taking any other actions in reliance on the 2019 BiOps until they comply with California Endangered Species Act (CESA).

In February 2020, the California Natural Resources Agency, the California Environmental Protection Agency, and the California Attorney General filed suit in the U.S. District Court for the Northern District of California, also challenging the 2019 BiOps under the Administrative Procedure Act. The complaint alleges claims for violation of the Federal ESA and National Environmental Policy Act (NEPA). The complaint requests that the 2019 BiOps, the Final EIS, and the Record of Decision be set aside until such time as Reclamation has complied with the Federal ESA and NEPA.

In addition, the California Department of Fish and Wildlife has not issued a concurrent determination for CESA compliance with regard to the 2019 BiOps and is expected to issue its own CESA take permit imposing different fish protection requirements on SWP operations and potentially on CVP operations.

The litigation and pending CESA take permit create some uncertainty regarding future SWP water availability, but that uncertainty is only speculative at this time. One remedy currently sought by litigants is to fall back to the 2008 and 2009 BiOps that govern SWP-CVP operations. If that outcome were to arise through the CESA permitting process or through the above pending federal court proceedings, the SWP operational rules specified in the 2008 and 2009 BiOps are the same used by the DWR when analyzing the SWP delivery capability.

14

As stated in MWD’s 2015 UWMP, the plan may be used as a source document for meeting the requirements of Senate Bill 610 and SB 221 until the next scheduled update is completed in five years (due July 1, 2021 ). The MWD 2015 UWMP includes a Justifications for Supply Projections in Appendix A.3 that provides detailed documentation of the planning, legal, financial and regulatory basis for including each source of supply in the plan.

Water supply agencies throughout California continue to face climate, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento- San Joaquin Delta and the current western states drought conditions. Challenges such as these essentially always will be present. The regional water supply agencies, IEUA and MWD, along with CVWD, nevertheless fully intend to have sufficient, reliable supplies to serve demands.

3.2 Groundwater Supplies CVWD receives groundwater from two distinct water basins - the Chino Basin and the Cucamonga Basin. CVWD currently operates 12 active groundwater wells in the Chino Basin. CVWD plans to continue operating these wells and will construct replacement wells as necessary to maintain water production capacities required to meet customer demands. CVWD frequently inspects each well and performs routine maintenance and rehabilitation to ensure each well is running efficiently and correctly. According to the 2015 UWMP, CVWD’s total pumping capacity in the Chino Basin is 27,017 gallons per minute (GPM). The calculated production capacity is 32,686 AFY, which assumes 75 percent of the maximum pumping capacity to account for operation and maintenance downtime.

CVWD currently has two clusters of wells in the Cucamonga Basin. The Cucamonga Creek Cluster which is a group of 10 wells, and the Alta Loma Cluster, which is a group of 7 wells. The District can utilize up to 9 of the 17 total wells. The remaining 8 wells are not used due to high nitrate and/or DBCP concentrations. According to the CVWD 2015 UWMP, the calculated production capacity is 12,566 AFY, which assumes 75 percent of maximum pumping capacity to account for operation and maintenance downtime. The total ground water production capacity of the well improvements is shown in Table 7.

Table 7: CVWD Groundwater Production Capacity Chino Basin Wells Production Rate (AFY) 32,686 Cucamonga Basin Wells Production Capacity (AFY) 12,566 Total Groundwater Well Production Capacity (AFY) 45,252 Source: Based on information provided by CVWD staff.

3.2.1 Chino Basin Groundwater Supply The Chino Basin is one of the largest groundwater basins in Southern California and contains approximately 6,000,000 acre-feet of water. The basin is approximately 235 square miles of the upper Santa Ana River watershed and lies within portions of San Bernardino, Riverside, and Los Angeles counties.

The Chino groundwater subbasin underlies southeast Los Angeles County, northwest Riverside County, and southwest San Bernardino County. The subbasin is bound on the northwest by the San Jose fault, on the north by the Cucamonga fault and impermeable rocks of the San Gabriel Mountains, and on the east by the Rialto- Colton fault. The subbasin is bound on the southeast by the Jurupa Mountains, Pedley Hills, La Sierra Hills, and the approximate location of the Santa Ana River. The Chino fault and impermeable rocks of the Chino

15

Hills and Puente Hills bound the southwest side of the basin. In some areas, the subbasin boundary coincides with the Chino Basin (1978) groundwater adjudication boundary. The boundary is defined by fifty-eight segments detailed in DWR Bulletin 118.

The groundwater rights for the Chino Basin were adjudicated in 1978 in the Chino Basin Judgment; this judgment established the Chino Basin Watermaster. The Chino Basin Watermaster, under the direct supervision and continuing jurisdiction of the San Bernardino County Superior Court, carefully manages water supplies throughout Chino Basin, arranges for local and supplemental groundwater recharge, and implements and administers the parties’ groundwater production rights under the Chino Basin Judgment. The Chino Basin Watermaster consists of various entities which include cities, water districts, water companies, agricultural, commercial, and other private entities. The mission is to manage the Chino Groundwater Basin in the most beneficial manner and to equitably administer and enforce the provisions of the Chino Basin Judgment.

Management of the Basin is governed by the 2012 Restated Judgment, the 2000 Peace Agreement (as amended), the 2000 Optimum Basin Management Plan (OBMP), the OBMP Implementation Plan (as supplemented), the 2007 Peace II Agreement, the Watermaster Rules and Regulations (as amended), and related Court orders. Management of the basin is discussed in detail in the 2015 UWMP.

The 1978 Judgment established the safe yield of the Chino Basin as 140,000 AFY. The judgment also divided the water rights into three groups called pools. The pools and pumping rights are shown in Table 8. Since the original agreement, the 2020 Safe Yield Reset Order has reduced the safe yield to 131,000 AFY.

Table 8: Chino Basin Pumping Rights, 1978 Judgment Overlying Agricultural Pool 82,800 AFY Overlying Non-Agricultural Pool 7,366 AFY Appropriative Pool 49,834 AFY Source: 2015 Cucamonga Valley Water District UWMP.

As discussed in the 2015 UWMP, the CVWD is a member of the Appropriative Pool and holds appropriative rights to approximately 18.3 percent (6.6 percent of its own and 11.7 percent through its shares of Fontana Union Water Company) of the Operating Safe Yield of the total Chino Basin water rights. The Operating Safe Yield is determined annually be the Watermaster. In FY2018-2019, the appropriative pool operating safe yield was established as 49,834 AF, equating the CVWD’s rights to 9,099 AFY.

CVWD, and other appropriative pool users, may also produce groundwater annually in excess of their specified rights based on the operating safe yield so long as it replenishes water in one of four methods: payment of a replenishment assessment; replenishment of physical water, replenishment of water from storage accounts, or purchase of water from others in the basin. The payment is used to replenish the basin through imported surface water recharge purchased from IEUA. As further discussed in the 2015 UWMP, CVWD also has access to land use conversion water and to the portion of the safe yield that is not produced by the Overlying Agricultural Pool. This reallocation varies by year depending on the actual usage from the Overlying Agricultural Pool.

16

The historical groundwater production from the Chino Basin is shown in Table 9. Groundwater production projections for the Chino Basin are shown in Table 10. The Chino Basin Peace II Agreement imposes restrictions on production until the end of 2030, after the completion of the agreement, production is expected to increase, as set forth in Table 10.

Table 9: Chino Basin Historical Production, AFY HISTORICAL PRODUCTION 2010 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019*

Chino Basin 19,831 19,380 15,041 18,437 13,626 18,760 21,712 6,200 11,315 17,038 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. *Based on information provided by CVWD staff. Table 10: Chino Basin Production Projections, AFY FUTURE PROJECTION 2020 2025 2030 2035 2040 Chino Basin 12,755 13,687 13,859 19,282 19,282 Source: 2015 Cucamonga Valley Water District UWMP.

Chino Basin Reliability CVWD’s average annual production from the Chino Basin from 2000 to 2018 was approximately 14,656 AFY and the capacity of CVWD’s active production wells in the Chino Basin total approximately 30,400 AFY. During the most recent five years, CVWD’s annual production ranged from approximately 6,200 AFY to 21,172 AFY. The Chino Basin Judgment authorizes CVWD to produce all the water it requires from the Chino Basin for beneficial use by CVWD’s customers, subject to replenishment requirements, and that ample water is present in the Chino Basin to allow CVWD to do so. CVWD has plans to construct additional wells and associated infrastructure in the Chino Basin to match additional water supply with additional water demands from growth in the number of customers throughout the District. CVWD active wells located in the Chino Basin have not been impacted by water quality issues; however, CVWD has the necessary technical and financial resources available to allow CVWD to quickly respond to assure continuity and reliability of water service if any such water quality incidents occur.

3.2.2 Cucamonga Basin Groundwater Supply The Cucamonga Subbasin underlies the northern part of upper Santa Ana Valley. It is bounded on the north by contact of alluvium with the San Gabriel Mountains and on the west, east, and south by the Red Hill fault. This portion of the upper Santa Ana Valley is drained by Cucamonga and Deer Creeks to the Santa Ana River. Recharge to the basin includes infiltration of stream flow, percolation of rainfall to the valley floor, underflow from the San Gabriel Mountains, and return irrigation flow. Spreading grounds along Cucamonga Creek and near Red Hill and Alta Loma also contribute to storm flow recharge to the Basin.

As discussed in the 2015 UWMP, the Cucamonga basin was adjudicated by decree in 1958. There are three main water agencies that hold all of the adjudicated rights in the Basin by virtue of having acquired or otherwise succeeded to the original parties to the Decree. These agencies include the CVWD, The San Antonio Water Company, and the City of Upland. The court did not appoint an official Watermaster for the basin, although the Decree contains various provisions for the metering and recording of all water production, inspection of records, prohibitions against new water production, potential reductions in water production, and other protective measures. The existing parties to the Decree meet periodically, and joint 17

efforts are currently underway to perform additional hydraulic investigations, update the safe yield of the basin, and develop management strategies.

The 1958 Decree allocates groundwater rights and the right to divert water from Cucamonga Creek, totaling approximately 22,721 AFY. However, several studies have been performed using varying base periods, varying geological boundaries, and other varying factors, which have indicated an estimated Basin yield between 13,800 AFY and 22,200 AFY. Historical production data and future projections show the total water production from the basin by CVWD is substantially below the allocated rights. CVWD has the right to produce 75 percent of the total basin yield, and additionally has the right to divert 3,620 AFY from Cucamonga Creek. Production has been limited in recent years since treatment is required to fully utilize Cucamonga Basin Wells. The Nitrate Treatment Facility (NTF) is a recently-constructed wellhead treatment facility and is anticipated to be operational by mid- 2021. This facility is expected to return production from the basin to its previous levels. Total basin yield is expected to range from 14,000 AFY to 16,000 AFY, resulting in a minimum total production of approximately 10,500 AFY for CVWD (based on a 75 percent share). For the purposes of the WSA, future projections estimate a conservative total production rate of 10,000 AFY from Cucamonga Basin. The pumping rights for the Cucamonga Basin are shown in Table 11. The historical production and the future projection for production from the basin are shown in Table 12 and Table 13, respectively.

Table 11: Cucamonga Basin Pumping Rights

Groundwater Pumping Rights (Percent of 75% total basin yield) Cucamonga Creek Diversion Rights 3,620 AFY Source: 2015 Cucamonga Valley Water District UWMP.

Table 12: Cucamonga Basin Historical Production, AFY HISTORICAL PRODUCTION 2010 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019* Cucamonga Basin 3,848 3,645 6,028 6,523 10,724 8,439 8,270 6,867 5,619 2,288 Source: 2015 Cucamonga Valley Water District UWMP. * Based on information provided by CVWD staff.

Table 13: Cucamonga Basin Projections, AFY FUTURE PROJECTIONS 2020 2025 2030 2035 2040 Cucamonga 10,000 10,000 10,000 10,000 10,000 Basin Source: 2015 Cucamonga Valley Water District UWMP.

Cucamonga Basin Reliability CVWD’s average annual production from the Cucamonga Basin from 2000 to 2018 was approximately 6,674 AFY. The capacity of CVWD’s active production wells in the Cucamonga Basin totals approximately 11,548 AFY. During the most recent five years, CVWD’s annual production ranged from approximately 5,619 AFY to 10,724 AFY. Although CVWD has rights and some additional capacity to produce additional groundwater from the Cucamonga Basin, CVWD has reduced its annual groundwater production in anticipation of a reduced

18

Operating Safe Yield. Overall basin production currently is less than the estimated sustainable safe yield. Therefore, under current conditions, the Cucamonga Basin may be assumed to be a reliable source of supply.

3.3 Surface Water Supplies CVWD’s surface water supplies come from streams, springs, and tunnels located within the northern area of the District. These water sources are also referred to as tunnel sources or canyon sources. Surface water sources accounted for 6.5 percent of the total supply water for CVWD, based on 2006-2015 averages.

CVWD has rights to a total of 6 canyon sources, or tunnel sources of surface water. These are the Cucamonga Canyon, Day/East Canyon, Deer Canyon, Lytle Creek, Smith Canyon Group, and the Golf Course Tunnel. Currently, water is only utilized from three of the six sources: Cucamonga Canyon, Day/East Canyon, and Deer Canyon. Water supplies from the canyon/tunnel sources are heavily dependent on precipitation in the region. Historical production from the canyon/tunnel sources are shown in Table 14.

Table 14: Surface Water Historical Production, AFY Canyon 2010 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019* Cucamonga 46.2 0.0 0.0 0.0 14.8 362.9 411.2 931.5 638.7 1,284.9 Deer 162.5 195.0 150.5 171.8 232.5 189.2 68.2 17.7 40.1 1.8 Day/East 3,745.2 5,723.2 2,687.3 1,653.2 1,163.0 498.2 736.3 2,359.0 1,392.6 3,225.6 Total (AFY) 3,953.9 5,918.8 2,837.8 1,825.0 1,410.3 1,050.3 1,215.7 3,308.2 2,071.4 4,512.3 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. *Based on information provided by CVWD staff.

In the 2015 UWMP, CVWD has two projection scenarios: one for normal conditions and one for dry conditions. Production during dry conditions is projected to be half the production during a normal year. Projected surface water production rates are shown in Table 15.

Table 15: Surface Water Production Projections, AFY 2020 2025 2030 2035 2040* Canyon Normal Dry Normal Dry Normal Dry Normal Dry Normal Dry Cucamonga 1,000 500 1,000 500 1,000 500 1,000 500 1,000 500 Deer 140 70 140 70 140 70 140 70 140 70 Day/East 3,400 1,700 3,400 1,700 3,400 1,700 3,400 1,700 3,400 1,700 Total (AFY) 4,540 2,270 4,540 2,270 4,540 2,270 4,540 2,270 4,540 2,270 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. * Based on information provided by CVWD staff.

3.3.1 Cucamonga Canyon CVWD acquired the rights of the Loamosa Water Company in 1970s, which included the Loamosa Tunnel and rights to surface water in Cucamonga Canyon. The Cucamonga Canyon facilities include two diversion ponds and an inlet connecting to 3,300 lineal feet of 24-inch diameter transmission pipeline to Arthur H. Bridge Water Treatment Plant. The pond intake facilities are located in an unincorporated area of western San Bernardino County, north of the Rancho Cucamonga city boundary. CVWD owns rights to 250 miner’s inches, which is equal to 3.24 million gallons per day (MGD).

19

3.3.2 Day/East Canyon CVWD acquired the Etiwanda Water Company in 1979, and thereby acquired surface and subsurface water rights for both Day and East Etiwanda Canyons. The sources from the two canyons are considered together and identified as Day/East Canyon. The canyons are located on the west and east end of the prolongation of Etiwanda Avenue. The facilities capture flows from four sources: Day Basin, east basin, Smith Tunnel, and Bee Tunnel. The flows are funneled into 14,600 lineal feet of 10-, 16-, and 18-inch diameter transmissions pipeline to Royer Nesbit Water Treatment Plant (currently not operating) and the Lloyd Michael Water Treatment Plant. Rights for both canyons are appropriative and include all rights to both surface and subsurface flows.

3.3.3 Deer Canyon CVWD acquired control and ownership of the Hermosa Water Company in the early 1970s, and thereby acquired surface and subsurface water rights for Deer Canyon. The improvements in Deer Canyon included the Hermosa Tunnel, Thayer Tunnel, and “A” Tunnel, falls, and a collection point in a side canyon known as Fan Canyon. Transmission mains conveyed the flows from these sources to a common collection point at a small reservoir located on the south side of Lemon Avenue, east of Archibald Avenue. The area known as Deer Canyon is located in the foothills generally north of Haven Avenue. In 2002, CVWD signed an agreement to sell the natural spring water production from Deer Canyon to Nestle Company. In 2005, Nestle completed a pipeline that conveys flows from Deer Canyon to their plant in the City of Ontario. Currently, the CVWD only captures flows from the Hermosa Tunnel in Deer Canyon. The flows are funneled into 1,310 lineal feet of 6-inch transmission pipe and conveyed to a reservoir for disinfection and distribution. The water from the Hermosa Tunnel is considered to be groundwater and meets State requirements as a source for drinking water.

3.3.4 Surface Water Reliability CVWD’s average annual production from surface water sources from 1990 to 2018 was approximately 4,794 AFY. During the most recent ten years, CVWD’s annual production ranged from approximately 1,050 AFY to 5,919 AFY (the lowest production years were recorded during a severe drought or while Cucamonga Canyon was out of service). It is estimated approximately 4,540 AFY of surface water (from Cucamonga Canyon, Deer Canyon, and Day/East Canyon) is available during a normal year and approximately 2,270 AFY of surface water is available during a dry year (CVWD 2015 UWMP, Table 34).

3.4 Recycled Water Supplies In 2009, the District and IEUA jointly constructed the Northeast Area Projects to provide recycled water storage and conveyance from Arrow Route to the San Sevaine Basins. Ensuing projects, including the West Recycled Water Pipeline completed in 2012, provided additional recycled water to the CVWD service area. From the IEUA-sourced recycled water connections, CVWD has distributed over 1,000 AFY to end users within its service area. The District anticipates development of a comprehensive plan for increasing its recycled water use, especially in the southeast portion of its service area. Conveyance facilities exist in the BPRC Project area; therefore, the Project proposes to use recycled water for its outdoor irrigation needs.

20

4 Cucamonga Valley Water District Water Demands 4.1 CVWD Historical and Projected Data Historical and projected data on population, water production, and water supplies have been based on the information in CVWD’s UWMP. CVWD’s historical water production is shown in Table 16. The production quantities have ranged from 48,063 AFY (2001) to 61,036 AFY (2007). The actual and projected populations are shown in Table 17. The actual and projected water use for the District is shown in Table 18. CVWD’s service area is projected to experience build-out in the year 2030. CVWD estimated future population by using the current population density and the remaining buildable area in their service area. The City of Rancho Cucamonga 2010 General Plan includes a 2030 buildout population projection incorporated into the CVWD population projection. All population and water use projections beyond the year 2030 are constant. The climate data for the CVWD service area in 2015 is shown in Table 19.

Table 16: CVWD Historical Potable Water Production CALENDAR TOTAL CALENDAR TOTAL YEAR PRODUCTION YEAR PRODUCTION 2000 50,717 2010 48,001 2001 48,063 2011 49,844 2002 52,409 2012 52,180 2003 51,899 2013 52,549 2004 54,826 2014 52,926 2005 55,933 2015 41,443 2006 57,967 2016* 41,732 2007 61,036 2017* 45,143 2008 57,496 2018* 45,877

2009 54,821 2019* 42,506 Source: 2015 Cucamonga Valley Water District UWMP (Table 44 excluding Recycled Water), except as noted otherwise. * Based on information provided by CVWD staff.

Table 17: CVWD Service Area Population, Actual and Projected ACTUAL PROJECTED YEAR 2000 2005 2010 2015 2020 2025 2030 2035 2040* POPULATION 148,159 179,523 185,606 200,466 209,707 219,118 228,200 228,200 228,200

Source: Based on Table 6, 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. *Based on information provided by CVWD staff.

21

Table 18: Water Use Sectors, Actual and Projected, AFY CUSTOMER TYPE 2010 2015 2020 2025 2030 2035 2040* Residential 30,416 25,728 36,731 38,228 39,724 39,724 39,724 Commercial 2,034 2,004 2,553 2,657 2,761 2,761 2,761 Industrial 2,023 2,126 2,614 2,721 2,827 2,827 2,827 Institutional 542 648 736 765 795 795 795 Irrigation 10,252 8,039 12,529 13,040 13,550 13,550 13,550 Agricultural 33 33 41 43 44 44 44 Construction 68 137 162 168 175 175 175 Water 13 16 0 0 0 0 0 Transfers Losses 2,607 2,720 3,534 3,678 3,822 3,822 3,822 TOTAL 47,988 41,451 58,900 61,300 63,700 63,700 63,700 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. * Based on information provided by CVWD staff.

Table 19: Climate Data MONTH MONTHLY MONTHLY AVERAGE TEMPERATURES (FOR YEAR AVERAGE (deg F) 2015) RAINFALL (IN) AVERAGE MINIMUM MAXIMUM January 0.94 59.2 46.8 71.4 February 1.66 62.1 48.9 75.2 March 0.19 66.7 53.1 80.6 April 0.5 65.5 53.1 77.9 May 0.94 64.6 54.5 74.8 June 0.01 76.5 62.8 90.1 July 0.6 77.4 65.1 89.8 August 0 81.5 67.5 95.4 September 1.72 80.6 67.8 93.2 October 0.67 74.7 62.8 86.5 November 0.45 58.8 44.4 73 December 1 53.1 40.3 65.7 Annual 8.68 68.39 55.59 81.13 Source: 2015 Cucamonga Valley Water District UWMP

The total projected water demands from the UWMP are shown in Table 20. The projections in the table are taken from the 2015 UWMP and include an allowance for the North Eastern Annexation Project. The amount of water allocated by the UWMP is compared to the actual water use projections based on the Project’s Water Master Plan in the next section.

22

Table 20: CVWD Projected Water Supply PROJECTED WATER SUPPLY (AFY) 2020 2025 2030 2035 2040* Reasonably Reasonably Reasonably Reasonably WATER Reasonably Available Available Available Available SUPPLY SOURCE Available Volume Volume Volume Volume Volume Groundwater Chino Basin 12,755 13,687 13,859 19,282 19,282 Cucamonga Groundwater 10,000 10,000 10,000 10,000 10,000 Basin Imported MWD/IEUA 31,605 33,073 35,301 29,878 29,878 Water Cucamonga 1,000 1,000 1,000 1,000 1,000 Surface Water Canyon Deer Surface Water 140 140 140 140 140 Canyon Day/East Surface Water 3,400 3,400 3,400 3,400 3,400 Canyon Surface Water Subtotal 4,540 4,540 4,540 4,540 4,540 Total Potable Water 58,900 61,300 63,700 63,700 63,700 Inland Recycled Empire 1,600 1,800 2,000 2,000 2,000 Water Utilities Agency

TOTAL Water 60,500 63,100 65,700 65,700 65,700 Source: 2015 Cucamonga Valley Water District UWMP, except as noted otherwise. * Based on information provided by CVWD staff.

4.2 Bridge Point Rancho Cucamonga Water Demands Projected water demand estimated for the Bridge Point Rancho Cucamonga development project for the WSA is based on the net increase in daily population due to additional employment opportunities from existing conditions. The existing development on the Project site includes approximately 1,454,240 square feet of retail, warehouse and ancillary office uses. The proposed Project will remove the existing structures, parking and landscaping, and replace it with two separate warehouse structures with a combined building area of approximately 2,152,500 sf (warehouse and ancillary office space), parking and landscape irrigation. The estimated employment opportunities (employees) for the current and proposed Project conditions are approximately 1,202 and 1,463, respectively. Employee water demand is typically estimated at five to ten gallons per employee per day.

The demand estimate also considers the water demand for irrigation of aesthetic landscaping proposed on the perimeter of the site, adjacent to building entrances, and within parking medians. Current irrigation demands are delineated in the UWMP and show a significant reduction in recent years due to drought and landscape irrigation reduction requirements. It is estimated the City’s landscape ordinance equates to a restriction of one (1) to two (2) acre-feet per acre per year (AF/Ac/yr) as is typical for southern California inland (arid) regions since implementation of the 2009 Water Conservation Act. For the purposes of the

23

WSA, and a conservative estimate, the estimated Project demand uses 2 AF/Ac/yr. The total landscape irrigation area is identified in the Project Data of the conceptual site plan as 7.1 percent of the subarea associated with Building 1 and five (5) percent of the subarea associated with Building 2 (Figure 2). Table 21a is a summary of the land uses for the Project. Table 21b calculates the estimated indoor and outdoor water demands for the Project. Table 21a - BPRC Proposed Land Use

BLDG LAND USE ACREAGE [2] 1 Warehouse 48.4 Office 2 Warehouse 26.4 Office - Street/Easement 8.0 - Total landscape [1] 8.6 Total 91.4 [1] Per BPRC site plan, irrigation is proposed for landscaping over 9.4% of the gross site area (91.4 acres). [2] Includes parking.

Table 21b - BPRC Water Demand Estimate [3] INDOOR OUTDOOR TYPE WATER USE WATER USE Outdoor DEMAND DEMAND Indoor Irrigation BLDG LAND USE Quantity units FACTOR FACTOR [1] Water Demand Demand [5] 1 General Ind 961 emp 10 gpcd - 9,610 gpd - landscape 5.56 Ac [4] - 2 AF/Ac/Yr - 9,940 gpd 2 General Ind 518 emp 10 gpcd - 5,180 gpd - landscape 3.04 Ac [4] - 2 AF/Ac/Yr - 5,422 gpd - Street/Easement 8.00 Ac - - - - 14,790 gpd 15,362 gpd GROSS Total 16.6 AFY 17.2 AFY Existing[2] n/a n/a -[2] 10,184 gpd [2]

NET BRIDGE POINT RC 19,968 gpd - - Total 22.4 AFY [1] Typical landscape ordinance restrictions per the 2009 Water Conservation Act range from 1.0 to 2.0 AF/Ac/Yr. [2] CVWD staff provided consumption data for water service accounts serving the Project site; assumes Irrigation consumption included. [3] Represents demand on CVWD potable (domestic) water sources until non-domestic water becomes available. [4] Estimated irrigation acreage associated with each building is based on BPRC Site plan - total (gross) landscape = 375,000 sf - and breakdown between each building is based on square-footage of each building. [5] Represents demand that could be served by non-domestic water sources.

24

The total net water demand increase for the CVWD due to the Bridge Point Rancho Cucamonga project would be 22.4 AFY for Project indoor and outdoor water uses at ultimate buildout, which is anticipated for completion in 2021 or 2023.

25

5 Future Supply

CVWD’s sources of water supply include untreated imported water purchased through the IEUA, groundwater rights to the Chino and Cucamonga Basins, and surface water. Recycled water is also provided through the IEUA as is considered in the CVWD 2015 UWMP and updated water supply for EHNCP WSA (April 2019) as part of the reasonably available water sources. The CVWD potable water supply for future normal years is shown in Table 22. It should be noted that imported water (Table 20) is broken down between Tier I and Tier II, and has been updated to include the estimated water demands for BPRC and EHNCP.

Table 22: CVWD Future Potable Supply - Normal Years YEAR POTABLE WATER SUPPLY & DEMANDS (AFY) 2020 2025 2030 2035 2040[1] BPRC Project Demands 0 22 22 22 22

CVWD Total Potable Demands [1] 57,942 60,163 64,209 64,547 64,547 WATER DEMANDS

PROJECTED TOTAL CVWD DEMAND 57,942 60,185 64,231 64,569 64,569

Chino Basin 12,755 13,687 13,859 19,282 19,282 Cucamonga Basin 10,000 10,000 10,000 10,000 10,000 Surface Water 4,540 4,540 4,540 4,540 4,540 IEUA Tier I Imported Water 28,369 28,369 28,369 28,369 28,369 WATER SUPPLY IEUA Tier II Imported Water [1] 3,236 4,704 7,463 2,378 2,378 Imported Water Total 31,605 33,073 35,832 30,747 30,747 (Adjusted from Table 20)[3] TOTAL POTABLE SUPPLY 58,900 61,300 64,231 64,569 64,569 Surplus supply[2] 958 1,115 0 0 0 Source: 2015 Cucamonga Valley Water District UWMP, and information provided by CVWD staff specifically for the BPRC WSA. [1] Based on input from CVWD staff and published data from CVWD. [2] Based on current total water supply (58,900 AFY). [3] Adjusted from CVWD Projected Water Supplies (Table 20) to include BPRC and based on information provided by CVWD staff.

Based on the water supply information in the 2015 UWMP, and information provided by CVWD staff specific to this and previous WSAs, CVWD’s future water demands can be met by using existing sources of water, including recycled water for irrigation purposes. The additional demands for future projects, including BPRC, can be met by District purchase of additional Tier II imported water from IEUA. CVWD has the ability to purchase Tier II water to meet the demands of future projects. With CVWD’s unlimited access to Tier II water, this is the water supply source CVWD plans to use for currently proposed future projects. All water sources are evaluated on a continual basis and implemented in the most cost effective manner for service to all District customers. The BPRC WSA identifies meeting demands through 2040 with the BPRC project.

The updated CVWD supply and demand projections for Normal Year, Single Dry Year, and Multiple Dry Years are outlined below.

26

5.1 Normal Year The supply and demand for the normal year are summarized in Table 23. The table shows that CVWD is projected to have sufficient supply to meet demands.

Table 23: Normal Year Supply and Demand* 2020 2025 2030 2035 2040 Supply 58,900 61,300 64,231 64,569 64,569 (AFY) Demand 57,942 60,185 64,231 64,569 64,569 (AFY) Difference 958 1,115 0 0 0 * Based on 2015 Cucamonga Valley Water District UWMP and information provided by CVWD staff.

5.2 Single Dry Year In a single dry year, the District’s groundwater supply is not anticipated to be affected. The water supply is projected at the Dry Year conditions as shown in Table 24. The difference from reduced canyon flows during a single dry year shall be made up from the District’s stored groundwater from the Chino Basin and/or implementation of water shortage contingency plan (See Section 3.2).

Table 24: Single Dry Year Supply and Demand* [3] [3] [3] 2020 2025 2030 2035 2040 Supply [1] 58,900 61,571 65,638 65,978 65,978 (AFY) Demand 57,942 60,457 65,638 65,978 65,978 (AFY) Difference [2] 958 1,114 0 0 0

* Based on 2015 Cucamonga Valley Water District UWMP and information provided by CVWD staff. [1] Based on updated supply information provided by CVWD staff. [2] The difference was identified by information provided by CVWD staff, and revised to include BPRC. [3] Supply to meet demand beyond 2025 is updated to include estimated BPRC water demand.

5.3 Multiple Dry Years In multiple dry years, the District’s surface water supplies are expected to be reduced. The water supply projected for multiple dry year conditions is shown in Table 25. There could also potentially be imported water restriction, such as those implemented in 2015.

To meet demand, the difference from reduced canyon flows, imported water restrictions and State mandated water reductions during a multi-dry year shall be made up from the District’s stored groundwater from the Chino Basin, MWD Tier II imported water (if available), replenishment water (if available), and implementation of the water shortage contingency plan. In the projected supply, the District will utilize all

27 its MWD Tier I allocation and the District will also pursue MWD Tier II water in order to meet any additional demand.

The Cucamonga Basin water right is above 10,000 AFY, excluding the rights to divert. The District does not currently utilize its full rights to the Cucamonga Creek (3,620 AFY). Current infrastructure limits the amount of water which can be used; however, the District is currently investigating means to return production to previous levels. With additional improvements in Cucamonga Basin, such as increased treatment capacity, the District would be able to utilize its full rights. For the purposes of the WSA, MWD Tier II water is sufficient to meet the additional demand.

Table 25: Multiple Dry Years Supply and Demand* [3] [3] [3] YEAR ITEM 2020 2025 2030 2035 2040 [1] Supply (AFY) 58,900 61,571 65,638 65,978 65,978 1 Demand (AFY) 57,942 60,457 65,638 65,978 65,978 Difference [2] 958 1,114 0 0 0 [1] Supply (AFY) 58,900 61,571 65,638 65,978 65,978 2 Demand (AFY) 57,942 60,457 65,638 65,978 65,978 Difference [2] 958 1,114 0 0 0 [1] Supply (AFY) 58,900 61,571 65,638 65,978 65,978 3 Demand (AFY) 57,942 60,457 65,638 65,978 65,978 Difference [2] 958 1,114 0 0 0

*Based on 2015 Cucamonga Valley Water District UWMP and information provided by CVWD staff. [1] Based on updated supply provided by CVWD staff. [2] The difference was identified by CVWD staff or published CVWD information, and revised to include BPRC. [3] Supply to meet demand beyond 2025 is updated to include estimated BPRC water demand.

5.4 Additional Available Water Supplies Additional groundwater is available to CVWD from the Cucamonga Basin. According to Section 5.2.2 of the 2015 UWMP, the District has the right to produce at least 10,500 AFY in addition to the 3,620 AFY from surface flows in Cucamonga Creek. Currently, as shown in Table 22 above, CVWD is planning to utilize only 10,000 AFY of groundwater from the Cucamonga Basin. A potential 2,566 AFY or more of groundwater could be evaluated for use by CVWD. Two major goals of the CVWD are to (1) reduce its reliance on imported water supplies and (2) diversify its water supply sources.

28

6 Conclusion

The analyses and data described herein demonstrate CVWD’s ability to meet the water demands of the Bridge Point Rancho Cucamonga development project during normal, single-dry, and multiple-dry years during a 20-year planning projection. Additional water sources not fully utilized under normal conditions include the District’s stored groundwater from the Chino Basin, MWD Tier II imported water, replenishment water, recycled water, and implementation of the water shortage contingency plan. The 2015 UWMP and the water supply portfolio recently updated by CVWD staff determined that increased local production up to existing rights, increased supply of Tier II imported water, recycled water, and other supply management strategies implemented by the District would meet the increased demands of near- term projects, thus establishing updated water supply capacity available for CVWD and the Bridge Point Rancho Cucamonga project. In addition, recycled water is planned to be used for all Project outdoor irrigation. The BPRC WSA concludes that net increased water demands for the Project site are within existing and planned water supply sources for the District under normal, single-dry, and multiple-dry years, in addition to existing and planned future uses, including agricultural and manufacturing.

CVWD produces water from its various sources with priority to utilize lowest cost sources first. Future wells in the Chino Basin, currently planned by CVWD, will increase production from the basin. Cucamonga Basin production has been limited due to groundwater treatment capacity. Current water supply improvement projects are proposed to return the Cucamonga Basin production to its previous levels. New wells and additional groundwater treatment capacity in Cucamonga Basin would allow production to the District’s full groundwater pumping rights to serve BPRC as well as all other currently planned development projects within CVWD. Recycled water is available for BPRC and is proposed to serve its non- potable water demand, i.e. outdoor irrigation.

Water service to BPRC is contingent upon prompt payment of all charges, rates, and fees as adopted by the District from time to time. All landscape plans are required to ensure compliance with applicable requirements, and the applicant/developer will be required to plan and install water efficient devices and landscaping in accordance with applicable District Development Guidelines and Standards, ordinances, and requirements.

The Bridge Point Rancho Cucamonga development project WSA does not create a right or any entitlement to water service (Water Code Section 10914). The WSA is not a commitment to serve the Project, but rather serves as a review of the District’s total projected water supplies as required by State legislation.

This WSA was prepared with information available to the District as of the date of its adoption. It is subject to amendment, revision, and/or re-adoption if significant new information becomes available which could not have been known, or was not known, at the time of its adoption, in accordance with Water Code section 10910(h).

29

RESOLUTION NO. 2021-1-4

RESOLUTION OF THE BOARD OF DIRECTORS OF THE CUCAMONGA VALLEY WATER DISTRICT REGARDING THE ADOPTION OF A WATER SUPPLY ASSESSMENT FOR THE Bridge Point Rancho Cucamonga Warehouse Project

WHEREAS, the Cucamonga Valley Water District (District) is a County Water District organized under sections 30000 et seq., of the California Water Code, wherein the District provides water supply and related services within its service area, which includes the City of Rancho Cucamonga, portions of the cities of Upland, Ontario and Fontana, and some unincorporated areas of San Bernardino County; and

WHEREAS, the District is a “public water system” as defined by California Water Code section 10912(c) and Government Code section 66473.7(a)(3) and, accordingly, the District may receive requests from time to time to prepare a Water Supply Assessment pursuant to Water Code section 10910 et seq. (commonly referred to as SB 610) and/or a Written Verification pursuant to Government Code section 66473.7 (commonly referred to as SB 221) in connection with certain proposed development projects; and

WHEREAS, the District received a request from the City of Rancho Cucamonga (City) for the District to adopt a Water Supply Assessment for the proposed Bridge Point Rancho Cucamonga Warehouse Project (the Project), where the City is the lead agency for the Project under the California Environmental Quality Act (CEQA), and the City is responsible for all land use decisions related to the Project; and

WHEREAS, the Project is within the District’s service area, and therefore the District would be the public water system to provide water service to the Project; and

WHEREAS, pursuant to the City’s request, a Water Supply Assessment has been prepared for the Project.

NOW THEREFORE BE IT RESOLVED by the Board of Directors as follows:

Section 1 Incorporation of Recitals. All of the foregoing Recitals are true and correct and the Board so finds and determines. The Recitals set forth above are incorporated herein and made an operative part of this Resolution.

Section 2 Review and Approval of Water Supply Assessment. The Board has reviewed the Water Supply Assessment prepared for the aforementioned Project and, based on the requirements of Water Code sections 10910 et seq., the Board hereby approves the Water Supply Assessment for the Project, a copy of which Water Supply Assessment is attached hereto as Attachment 1 and incorporated herein by reference.

Section 3 CEQA. The Board finds in accordance with Water Code section 10910(g) and Water Code section 10911(b)-(c) that the Board’s adoption of a Water Supply Assessment is not subject to review by the District under the California Environmental Quality Act.

-1- 04342.00002\24471968.1

RESOLUTION NO. 2021-1-4

Section 4 Limitations of Water Supply Assessment. The Board finds in accordance with Water Code section 10914(a)-(b) and other applicable laws, rules, regulations, and policies that the Water Supply Assessment adopted herein for the above-reference Project does not create a right or entitlement to water service or any specific level of water service for the Project, the Project applicant, the City, or any other party or entity, and does not impose, expand, or limit any duty concerning the obligation of the District to provide certain service to its existing customers or to any future potential customers.

PASSED AND ADOPTED this 26th day of January, 2020.

______Randall James Reed President ATTEST:

______John Bosler Secretary

-2- 04342.00002\24471968.1

STAFF REPORT Date: January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Credit for Existing Capacity Fees – Comar Rancho 2.0

Purpose The Board of Directors is requested to approve the capital capacity credit for the new development, Comar Rancho 2.0, located at 9595 Utica Avenue (PM 17318).

Background/Analysis The Board of Directors adopted the Credits and Adjustments Administrative Policy 1.8 in order to define the limits on the actions that staff may take regarding the occasional waiving of fees or the issuance of credits to customers and/or developers. When real property is being redeveloped, often there is existing water or sewer capacity associated with the property that was paid for previously. Any credit for existing capacity that exceeds $10,000 must be approved by the Board.

Comar Ranch 2.0 is planning to redevelop the properties at 9595 Utica Avenue into a plastic injection molding facility. The developer has determined that the current 2” domestic meter will not provide the necessary volume of water needed for their facility operation, therefore they are requesting to increase their service to a 3” meter. The developer intends to use capacity credits from existing meters toward their new development.

Existing Capacity at 9595 Utica Avenue Credit Meter Size Water System Sewer System Capacity Value Capacity Value 2” Domestic Meter $48,616.00 $6,605.00

The development is currently in plan check and the estimated new capacity fees are greater than the credit being issued. The above capacity credits will be applied to the new water and sewer capacity fees, respectively.

This item was presented to the Engineering Committee on January 19, 2021.

Alignment with Strategic Goals Recognizing this credit continues to show our commitment to customer service and accountability to local businesses.

Fiscal Impact The total value of Water and Sewer Capacity credit are $48,616 and $6,605, respectively; these will be deducted from the new capacity fees on the development. January 26, 2021 Credit for Existing Capacity Fees – Comar Rancho 2.0 Page 2

Recommendation It is recommended that the Board of Directors approve issuance of credit for existing water and sewer capacity fees in the amount of $48,616 and $6,605, respectively, associated with the property located at 9595 Utica Avenue (PM 17318).

Attachment Attachment 1: Area Map

Submitted By: Eduardo Espinoza, PE, Director of Engineering Services Prepared By: Gidti Ludesirishoti, PE, Associate Engineer

Q:\GIS\1Internal\Engineering\PresentationExhibits\ComarSite.mxd ALMOND

SAPPHIRE

CARNELIAN VINEYARD

ARCHIBALD VICINITY MAP VICINITY §¨¦ 8TH 10

HAVEN BASELINE 210 || ARROW HILLSIDE

Project Site Project MILLIKEN > BANYAN

ROCHESTER UTICA AVE §¨¦

15 ETIWANDA

EAST WILSON FOOTHILL 4TH ST 4TH INDEX MAP INDEX NOT TO SCALE NOT TO COMAR SITE PLAN SITE COMAR E

STAFF REPORT Date: January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Adopt Resolution No. 2021-1-3 Easement Acquisition and Award of Contract for the Construction of a Transmission Main from Reservoir 5 to 5B

Purpose Staff is seeking approval for an Award of Contract to Merlin Johnson Construction, Inc. for the construction of a new 12-inch transmission main from Reservoir 5 to 5B and for a purchase of an easement for water purposes in 9575 Hidden Farm Rd from the Hunter Family Trust.

Background/Analysis This project will connect the existing 12-inch zone 5 transmission main, located on Archibald Avenue and Carrari Street, to the existing16-inch Reservoir 5 transmission main. This project will allow Reservoirs 5 and 5B to share the zone 5 demand thereby providing operational flexibility and redundancy. Currently, Reservoir 5B is the primary source of supply for zone 5 between Hermosa Ave and Milliken Ave.

Staff issued an Invitation to Bid for project on October 29, 2020. On November 17, 2020, the District received five (5) bids and Merlin Johnson Construction, Inc. was the lowest responsive and responsible bidder with a price of $457,734. The project budget is $580,000.

The District owns, operates, and maintains an existing 8-inch waterline within the property owned by the Hunter Family Trust. The pipeline was constructed in 1979 and an easement was never recorded with the original installation of the pipeline. The proposed 12-inch waterline will be constructed parallel to the existing waterline.

The proposed 10-foot wide easement covers approximately 195 square feet, which includes the length of both waterlines and allows for maintenance and construction in the future. The District hired Steven R. Smith, a licensed appraiser specializing in these types of valuations, to provide an appraisal for a fair market valuation of the easement. The land was valued at $18 per square foot for a total valuation of $3,510. A factor of 50% of the valuation was applied to recognize the rights granted to the District, which results in a purchase price of $1,755 for the Grant of Easement for water purposes from the Hunter Family Trust.

This item was presented to the Engineering Committee on January 19, 2021.

Alignment with Strategic Goals This project will provide operational flexibility and redundancy to our water system. The Grant of Easement aligns with the District’s Water Operational Goals of protecting and securing rights for District facilities. January 26, 2021 Adopt Resolution No. 2021-1-3 Easement Acquisition and Award of Contract for the construction of a Transmission Main from Reservoir 5 to 5B Page 2

Fiscal Impact Funding for this project is included as part of the Capital Improvement Project Budget for Fiscal Year 2021 and Fiscal Year 2022, which was approved on June 23, 2020. The budgeted amount for this project is $580,000.

Recommendation Staff recommends that the Board of Directors take the following actions on this item: 1. Adopt Resolution No. 2021-1-3, a resolution of the Board of Directors of the Cucamonga Valley Water District approving the easement purchase for water purposes from Hunter Family Trust in the amount of $1,755. 2. Approve an Award of Contract for the construction of a transmission main from Reservoir 5 to 5B to Merlin Johnson Constructions, Inc. in the amount of $457,734.

Attachments: Attachment I: Location Map Attachment II: Bid Opening Sheet Attachment III: Grant of Easement Attachment IV: Resolution No. 2021-1-3

Submitted By: Eduardo Espinoza, PE, Director of Engineering Services Prepared By: Tuan Truong, PE, Engineering Manager

E

Reservoir 5 HIDDEN FARM RD JADETTEAVE ARCHIBALDAVE

. N89 34' 40" N89 W 18.48'

HIDDEN FARM RD 12' 10'

PROPOSED EASEMENT AREA=195 SQ./FT Q:\GIS\1Internal\Engineering\StaffReports\CP20028_ConstructTransmissionMainRes5To5B.mxd INDEX MAP NOT TO SCALE

Project Site ALMOND >

HILLSIDE WILSON SAPPHIRE BANYAN

210|| CARNELIAN EAST

BASELINE ETIWANDA

§¨¦15

FOOTHILL VINEYARD ARCHIBALD HAVEN MILLIKEN ARROW ROCHESTER 8TH CP20028 - CONSTRUCT TRANSMISSION MAIN FROM RESERVOIR 5 TO 5B

§¨¦10

VICINITY MAP CUCAMONGA VALLEY WATER DISTRICT P.O. BOX 638 RANCHO CUCAMONGA, CA 91729

November 17, 2020 2:00 p.m. CP20028

BID RESULTS

CONSTRUCT TRANSMISSION MAIN FROM RESERVOIR 5 TO 5B CP20028

------Contractor Base Bid ------

Merlin Johnson Construction, Inc. $ 457,734.00

Norstar Plumbing & Engineering, Inc. $ 486,560.00

C.P. Construction Co., Inc. $ 548,210.00

Robert Brkich Construction Corp. $589,100.00

Gwinco Construction & Engineering, Inc. $ 593,944.00

RECORDING REQUESTED BY: Nikolas Baykal

CUCAMONGA VALLEY WATER DISTRICT P. O. Box 638 Rancho Cucamonga, CA 91729-0638

WHEN RECORDED MAIL TO:

CUCAMONGA VALLEY WATER DISTRICT P. O. Box 638 Rancho Cucamonga, CA 91729-0638

SPACE ABOVE THIS LINE FOR RECORDER’S USE No Recording Fee Pursuant to Govt. Code §27383

GRANT OF EASEMENT Waterline Purposes

NO TAX DUE (Grantee is a Public Agency)

For valuable consideration, Daryl R. Hunter and Kathie A. Hunter, as Co-Trustees of The Hunter Family Living Trust ([collectively] “Grantor”), hereby grants to the CUCAMONGA VALLEY WATER DISTRICT, (“Grantee”), an easement (“Easement”) in, over, upon, under and across the lands hereinafter described, to construct, reconstruct, install, replace, remove, repair, alter, operate, maintain, inspect and use, a pipeline or pipelines together with braces, connections, fastenings, communication cables and other appliances and fixtures in connection therewith or appurtenant thereto (collectively “Pipeline(s)”), for water purposes, and for ingress and egress in connection with the exercise of the foregoing rights. The property subject to this Easement (“Easement Area”) is located in the County of San Bernardino, State of California, and is described in EXHIBIT “A” and shown in EXHIBIT “B”, attached hereto and by this reference incorporated herein.

This Easement includes the right to inspect, alter, remove, replace, reconstruct and repair the Pipeline(s), and to mark the location of the Easement by suitable markers set and maintained in the ground at locations which shall not interfere with Grantor’s reasonable use of the surface of the Easement Area. Grantee shall also have the right to use that portion of Grantor’s land adjacent to the Easement Area as may be reasonably necessary during the construction, installation and repair of the Pipeline(s) for proper access to the Easement Area.

Grantor shall not increase or decrease, or permit to be increased or decreased, the now existing ground elevations of the Easement Area without the prior written consent of Grantee. Grantor reserves the right to the use and enjoyment of the surface of the Easement Area, provided that such use and enjoyment shall not hinder, conflict or interfere with Grantee’s exercise of its rights hereunder, and that no excavation, building, structure, or other obstructions shall be constructed within the Easement Area. In addition, the Easement Area shall not be inundated and shall be kept free of trees and deep-rooted shrubs. Nothing shall be done to interfere with Grantee’s vehicular access to or along the Easement Area.

The Pipeline(s) shall at all times remain the property of Grantee and may be removed in whole or in part or relocated within the Easement Area by Grantee. If Grantee elects to permanently abandon the Pipeline(s), Grantee may elect to leave the Pipeline(s) in place. Upon such removal or abandonment, Grantee shall execute and cause to be recorded (or provide to Grantor for recording) a release of the Easement.

The Pipeline(s) shall remain at their current depth and location (as originally constructed) provided, however, that Grantor may request that Grantee relocate or lower the Pipeline(s) to another location or depth within the Easement Area or elsewhere on Grantor’s Property so long as (a) such revised location and depth are compatible with Grantee’s operations; (b) Grantor pays the entire cost of such relocation or lowering; and (c) if the Pipeline(s) are located outside the Easement Area, Grantor shall, at its cost, provide to Grantee an Easement of the same width, accessibility and containing the same terms and conditions as contained herein.

The Easement and the rights described herein are perpetual and for the benefit of Grantee, its successors and assigns, and may be transferred or assigned by Grantee, in whole or in part. This Easement and the rights and obligations of Grantor and Grantee as described herein shall run with the land and be binding upon and inure to the benefit of the successors and assigns of Grantor and Grantee.

This instrument shall be binding upon and inure to the benefit of the successors and assigns of the Grantor.

IN WITNESS WHEREOF, Grantor has caused this instrument to be executed this ______day of ______, 20____.

GRANTOR:

Date: ______By: ______

By: ______

Daryl R. Hunter and Kathie A. Hunter, as Co- Trustees of The Hunter Family Living Trust

Certificate of Acceptance:

This is to certify that the interest in the real property conveyed by this instrument to the CUCAMONGA VALLEY WATER DISTRICT was accepted by the Board of Directors of said District on ______, 2021, by Resolution No. ______, and said Board has consented to the recordation of the within instrument.

______John Bosler, Secretary of the Board of Directors of the (seal) Cucamonga Valley Water District

EXHIBIT鱒A,, LEGAしDESCRiPTION

THE LAND REFERRED TO HEREiN BELOW IS SITUA丁ED IN SAN BERNARDINO COUNTY, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

THE SOUTHERLY lO.00 FEET OF THE NORTHERLY 12,00 FEETOF LOT9 OFTRACT NO. 9521,ASSHOWN ON MAP FILED IN BOOK 138, PAGES49AND 50 OF MAPS, lN THE OFFICE OF THE RECORDER OF SAN BERNARDINO COUN丁Y.

THE SIDELINES OF SAID STRIP OF L/IND lO.00 FEE丁IN WID丁H SHALL BE PROLONGED OR SHORTENED TO TERMINATE WESTERLY IN THE WES丁ERLY LINE OF SAID LO丁9 AND SHALL BE PROLONGED OR SHORTENED TO TERM!NATE EASTERLY iN THE EASTERLY LINE OF SAID LOT 9.

THE ABOVE DESCRiBED PARCEL OF LAND CONTAINS 195 SQUARE FEET, MORE ORLESS.

AS SHOWN ON A[ACHED EXHIBIT ``B,,, AND BY THIS REFERENCE MADE APART THEREOF.

PREPARED BY ME OR UNDER MY D看RECTION

Lot 9 Waterijne Esmt legaI desc sheet l of l 且X軸8回営音〇回0

、さらややいへ碕ミ

への寸も」

∠別筋鴇14鯛補講9擁00・w わカdeiきe A晦nue〇〇〇〇 H/DD亡N FARM ROAD

辿Aエ王RLINE EASEME坦工 AREA=195 SQ./FT.

⑨ e配船⑥両 -音l「N-漢書 脚⑨。 ⑨㊨室田 相思l勤9-50

篭詐悪罵‡ur轟韓c ・ 20730 Knob P賞ace PeⅢi8, CA 92570 PH 951-736-0200 SCALE 7 ’’=20’ SHEET l OF 1

CUCAMONGA VA」LEY WATER DISTRICT SAN BERNARDINO COUNTY, CALI「ORNIA RESOLUTION NO. 2021-1-3

RESOLUTION OF THE BOARD OF DIRECTORS OF THE CUCAMONGA VALLEY WATER DISTRICT ACCEPTING A GRANT OF EASEMENT FOR SEWER PURPOSES FROM SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT

BE IT RESOLVED by the Board of Directors of the Cucamonga Valley Water District

(herein “District”) that the District accepts a Resolution No. 2021-1-3. A Resolution to the Board of Directors of the Cucamonga Valley Water District accepting a Grant of Easement for water purposes in 9575 Hidden Farm Road from Daryl & Kathie Hunter, under along and across the real property in the County of San Bernardino, State of California, described in Exhibits “A” and

“B” which are attached hereto.

APPROVED, ADOPTED AND SIGNED this 26th day of January, 2021:

______Randall James Reed President

ATTEST:

______John Bosler Secretary

STAFF REPORT Date: January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Award of Contract for Well 31 Rehabilitation Project

Purpose Staff is recommending an Award of Contract to General Pump Company, Inc. in the amount of $152,880.00 for the Well 31 Rehabilitation Project (CP20041 – Annual General Well Rehabilitation).

Background/Analysis The District utilizes an integrated approach in water supply and distribution system operation focusing on quality, resource management and energy efficiency. Energy efficiency is closely monitored via District telemetry and routinely evaluated through Southern California Edison’s pump efficiency testing program. In the endeavor to ensure a reliable and efficient water supply, staff analyzes pump performance data and test results to determine which facilities are in the greatest need of rehabilitation. Projects are then prioritized and scheduled into the annual pump rehabilitation program.

Data and test results have revealed the overall plant efficiency of Well 31 has fallen below operational standards, therefore pump rehabilitation is warranted. Well 31 is located at 9511 Highland Avenue in the Cucamonga Basin; it is one of five wells in the Reservoir 3 well field. Records indicate Well 31 has been in service without significant maintenance since 1988. Furthermore, it is the single largest producer in this well field having pumped 1454 acre feet in FY2020. Rehabilitation of Well 31 will improve water system efficiency and reliability.

On December 2, 2020 the District issued a Request for Bid (RFB) to four pump contractors. The RFB included the services and materials required to remove, inspect, repair and/or replace the well pump, motor, and appurtenances. The RFB consisted of two bid schedules - A and B. Schedule A includes all work necessary to complete the project, assuming all existing components are repairable. Schedule B consists of pricing to replace each component if required, as determined during post-removal inspection. This approach provides competitive bidding for all components prior to the award of contract.

On December 15, 2020 the District received two (2) bids in response to the RFB. The two remaining contractors declined to bid. The lowest responsive and responsible bidder was General Pump Company with a price of $152,880.00 (Schedule A).

Alignment with Strategic Goals Maintenance and rehabilitation of the District’s water supply infrastructure is critical in the execution of the District’s core mission and objectives.

January 26, 2021 Award of Contract - Well 31 Rehabilitation Project Page 2

Fiscal Impact CP20041 – Annual General Well Rehabilitation in the amount of $300,000 is an approved project in the District’s Fiscal Year 2021-2022 Operating and Capital Improvement Budget.

Recommendation Staff recommends that the Board of Directors approve the Award of Contract to General Pump Company, Inc. in the amount of $152,880.00 for the Well 31 Rehabilitation Project (CP20041 – Annual General Well Rehabilitation).

Attachment: Attachment 1: Well 31 Rehabilitation Project Bid Results

Submitted by: Rob Hills, Director of Operations Prepared By: Michael Maestas, Water Production Manager

CUCAMONGA VALLEY WATER DISTRICT P.O. BOX 638 RANCHO CUCAMONGA, CA 91729

December 15, 2020 2:00p.m. CP20041

BID RESULTS

Cucamonga Valley Water District - Well 31 Rehab Project

------Contractor Total Amount (Schedule A) ------

General Pump Company, Inc. $ 152,880.00

South West Pump & Drilling, Inc. $ 159,452.00

Layne Christensen No Bid

Best Pump No Bid

STAFF REPORT Date: January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Approve Purchase Order to Ponton Industries, Inc. for CP20046 - Booster Sequencing Equipment and Services

Purpose Approve Purchase Order to Ponton Industries, Inc. in the amount of $102,382.41 for the purchase of Twenty-Three (23) Pressure Regulating Valve (PRV) monitoring stations and related services.

Background/Analysis The District is compelled to operate its water system in an efficient manner while meeting daily demands and maintaining water quality. In this endeavor, the District continues to refine operational efficiency with emphasis on proactive pump maintenance, pump performance monitoring, and booster sequencing.

The booster sequencing project focuses on two primary goals; 1) boosting water to higher pressure zones in the most efficient manner and 2) minimizing water bypassed to lower pressure zones through PRVs. The District has met the first objective with the recent installation of flow meters, energy meters, and other ancillary equipment to collect and process real-time data necessary for advanced control strategies. The second objective will be realized with the installation of PRV monitoring stations to monitor and manage each pressure zone. The District’s water distribution system necessarily utilizes several PRVs to ensure adequate zone pressure and fire protection. However unintended, undetected leakage from one zone to the next is extremely inefficient and can result in considerable energy costs. PRV monitoring will ensure such occurrences are detected and corrected resulting in substantial energy savings.

For this application, the District has standardized on the product line manufactured by Trimble Water. Trimble’s product integrates seamlessly with the District’s Geographical Information System (GIS) and is currently utilized for portable hydrant pressure recorders. Hydrant recorders are strategically deployed throughout the water system to monitor pressure anomalies and collect critical system performance data. The equipment specified for this project will provide real-time monitoring of upstream pressure, downstream pressure, and flow for each PRV station. Through integration with the District’s GIS, the data will be logged and alerts will be issued in the event of abnormal flow conditions between zones. Staff successfully installed and piloted the selected equipment for several weeks and was successful in demonstrating a significant decrease in leakage between two zones.

Trimble Water products are distributed exclusively by Ponton Industries, Inc. Staff obtained a quotation of $102,382.41 from Ponton Industries. The quote included equipment and January 26, 2021 Approve Purchase Order to Ponton Industries, Inc. for CP20046 - Booster Sequencing Page 2

supporting services required to monitor 23 PRV stations along with additional stock items. Installation of equipment will be completed internally by staff.

Alignment with Strategic Goals The booster sequencing project is consistent with the District’s goal of minimizing costs by ensuring the water system is operated and managed at peak efficiency.

Fiscal Impact This project is funded from CP20046 - Booster Sequencing as approved in the Fiscal Year 2021 - 2022 Operating and Capital Improvement Budget.

Recommendation Staff recommends that the Board of Directors approve a purchase order to Ponton Industries, Inc. in the amount of $102,382.41 for the purchase of Twenty-Three (23) Pressure Regulating Valve monitoring stations and related services.

Attachments: Ponton Industries, Inc. Quotation

Submitted by: Rob Hills, Director of Operations Prepared By: Michael Maestas, Water Production Manager

QUOTE#: PONQ42508 DATE: Nov 18, 2020

Your Local Representative for ...

22901 Savi Ranch Pkwy, Suite B Fax: (714) 998-9083 Yorba Linda, CA 92887 [email protected] Tel: (714) 998-9073 www.pontonind.com ~Featured Item~ Sold to: Cucamonga Valley Water District Have you seen our brand NEW WEBSITE? Designed to help you Lee Chicaul quickly find what you're looking for. The site is loaded with helpful features and tools. You can also book a Lunch & Learn or Tacos 10440 Ashford st & Talking meeting with a product specialist! Visit Rancho Cucamonga, CA 91730 www.pontonind.com and tell us what you think!!

Phone: (909) 987-2591 Email: [email protected] Quoted by Est. Lead Time F.O.B Ship Via Terms Emilia Terry 2-3 Weeks ARO Factory Best Way Net 30 OAC

ADDRESS PO TO: Trimble Inc. in c/o Ponton Industries

LineProduct Details Qty Unit Ext. Price No Price 1. Ru-32mA-L1V 20-1084 25 $ $ 53,625.00 2,145.00

2. Standard Pressure and Cable Assembly PT-DS-H0-200-020 48 $ 495.00 $ 23,760.00

3. Burial Antenna A-CBA-LTE 23 $ 260.00 $ 5,980.00

4. RTU Setup Fee TW-UNITY-RTU-SF 23 $ 75.00 $ 1,725.00

5. Trimble Unity – Remote Monitoring Basic Subscription - Cellular (32/33 Series Plan) TW-UNITY-RMBC-SS 23 $ 240.00 $ 5,520.00

6. Trimble Unity GIS Setup Fee TW-UNITY-GIS-SF 1 $ $ 1,500.00 1,500.00

7. Trimble Unity Measurement Historian API Annual Base Subscription TW-UNITY-MHA-OS 1 $ $ 2,500.00 2,500.00 **Optional Items

8. Trimble Unity Measurement Historian API Tier 1 Annual Subscription TW-UNITY-MHA-DS-1 23 $ 50.00 $ 1,150.00

**Optional Items

9. Lithium 3.9V, D+HLC Battery Pack now enables enhanced battery monitoring and prediction of battery exhaustion in 2 $ 75.00 $ 150.00 advance BP-4

**Spare Parts

Sub Total $ 95,910.00

Tax $ 0.00 Adjustment $ 6,472.41 Grand Total $ 102,382.41

ADDRESS PO TO: Trimble Inc. in c/o Ponton Industries

Notes: Adjustment represents estimated tax at 7.75% for equipment only. Terms and Conditions

Prices are firm for 30 days by referencing above Quote Number. Taxes and Shipping are not included in this quote. Lead times do not include "transit time". Proof of non-taxable status is required if applicable. Credit reviewed prior to order entry and will be issued if approved. Trimble's Standard Terms & Conditions will apply to this order.

WARNING: Cancer and Reproductive Harm - www.P65Warnings.ca.gov

Government and Public Affairs Committee Notes January 11, 2021

Attendees: Committee members: Luis Cetina (Chair) and Mark Gibboney

Staff members: John Bosler, Carrie Guarino, Taya Victorino, Chad Brantley, Eduardo Espinoza, Rob Hills, Eric Grubb, Erin Morales, Socorro Pantaleon, and Elizabeth Becker

Members of the Public: Michael Boccadoro & Beth Olhasso, West Coast Advisors

Call to Order: 3:00 p.m.

Public Comment: None

Additions/Deletions to Agenda: None

Introductory Remarks by Chair Cetina Chair Cetina announced for the record that this meeting was conducted by teleconference pursuant to the Brown Act waivers provided for under the Governor’s Executive Orders, in response to the COVID-19 State of Emergency. Further, the agenda stated that there was no public location for attending this meeting in person. The agenda stated that the public may listen and provide comment telephonically by calling the number listed on the agenda. Chair Cetina took a roll call of Committee members and staff present on the call as listed above.

1. Legislative Conference Call  Michael Boccadoro and Beth Olhasso of West Coast Advisors (WCA) provided a brief update on key state legislative issues expected in 2021.

 The Legislature recently returned to in-person meetings in Sacramento to act on emergency action items related to COVID-19. Governor Newsom proposed his 2021-2022 State Budget of $227 billion including approximately $4.5 billion in COVID specific funding. The Governor’s proposed budget is the largest in state history with much of the revenue to fund it coming from capital gained taxes.

 Some of the key issues the Governor and Legislature are dealing with include the following: a financial stimulus plan for businesses and individuals, a plan to re-open schools, vaccine distribution, homelessness, affordable housing, climate resiliency, and ongoing EDD issues related to a backlog of unemployment claims and significant fraud. It is expected to be a busy January with a possible lull in February and March. Legislative leaders have decided that only 10 bills per legislator will be sent to the other house for consideration so legislators will need to prioritize and carefully consider the bills they carry.  There is an active and growing recall campaign for Governor Newsom. The effort has until March to obtain enough signatures to qualify for the ballot; the effort currently has over half the amount of signatures needed. Page 1

Government and Public Affairs Committee Notes January 11, 2021

 There is no update or end in sight for the Governors Executive Order on water shutoffs. There is not a time limit on the Governor’s Executive Orders, he can keep them active for as long as he sees necessary.

 California Association of Sanitation Agencies (CASA) is planning to re-introduce its “flushable wipes” bill from last year. The bill improves labelling on flushable wipes so the public understands that they are not truly flushable and can damage sewer infrastructure.

 Mr. Boccadoro and Ms. Olhasso exited the call at 3:25 pm

2. Legislative Policy Principles

 Staff brought back the two remaining proposed draft Legislative Policy Principles for discussion and consideration by the Committee. The Committee approved the two remaining policy principles with one minor change. The next step for the item is a board workshop after the January 26, 2021 Board meeting. During the workshop, the full Board can discuss and consider the adoption of the legislative policy principles.

3. SB 415 Update (Verbal)

 Staff provided the Committee an update on the SB 415 process. Now that the County Board of Supervisors has approved the District’s move to even-year elections, the public notification process will commence.

 The County will send a postcard to all registered voters in the District notifying them that CVWD has changed its election cycle from odd-years to even years. Based on the prior post-card from 2017, it will let the public know that the next election will be held on November 8, 2022, that the current board member terms will be extended by one year, and will include a dedicated CVWD phone number in case of questions.

 Staff will be given the opportunity to review a draft of the postcard before the County mails it. Last Friday staff distributed Talking Points that can be used to answer questions from the public.

 The Committee requested that staff re-engage with the community through a NewsFlash distributed in Social Media and posted on our website that informs the community of the County’s decision and that a postcard will be mailed by the County within the next 30 days.

Meeting Adjourned at 3:40 p.m.

Page 2

STAFF REPORT Date: January 26, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Legislative Policy Principles

Purpose By approving legislative policy principles, the District’s Board of Directors is setting a clear direction for staff to adopt official District positions on clearly stated legislative issues at the start of the legislative session and throughout the year. The legislative policy principles support the mission of the District to provide high quality, safe and reliable water, and wastewater services, while practicing good stewardship of natural and financial resources.

Background/Analysis California’s water system is both highly interconnected and decentralized, which creates challenges that often require multi-faceted and complex solutions. Some of these challenges include:

• Water supply diversification • Emerging water quality concerns • Upgrading and adding new infrastructure • Funding and financing of projects • Environmental impacts

Prioritizing long-term efficiency and resource planning, diversification of the District’s water supply, and innovation of our facilities are all necessary. The District understands that there is no “silver bullet” solution to the complicated set of issues that water agencies face. The District supports policy solutions that advance sustainable, comprehensive, cohesive, and science-based approaches to providing water and wastewater services. Moreover, holistic policy solutions that do not create unintended consequences in other areas of the state are a priority for the District.

Staff created its first series of legislative principles years ago; however, these principles were not formally adopted by the Board. Staff is presenting updated policy principles that better reflect current legislative and regulatory issues. While updating the principles, staff also streamlined the format of the document.

When considering legislative or regulatory proposals, the District may support or oppose based on the adopted policy principles. In cases where a legislative proposal, policy, or regulatory action is not a priority for the District but may affect the water industry, the January 26, 2021 Legislative Policy Principles Page 2

District may choose to choose to take a “watch” position. There are also situations when the District may choose to take a position on a bill only if amendments are made.

For proposed legislation, either consistent with the District’s principles or with legislative positions the District has taken in the past, staff will prepare position letters for the General Manager’s signature. Items not addressed in the principles may require further Board direction. Any legislative positions and/or actions that are deemed as potentially “controversial” by the General Manager will be presented to the Government & Public Affairs Committee and the Board of Directors, if needed, for further action. This process is supplemented by the monthly advocacy updates that the Government and Public Affairs Committee receives.

Alignment with Strategic Goals Having legislative policy principles in place supports the District’s strategic goal of actively participating in the water policy arena to influence local, state, and federal laws and regulations.

Fiscal Impact Adopting the legislative policy principles does not have a direct fiscal impact to the District; however; the practice of actively advocating on our customers’ behalf has significant value.

Recommendation Staff presented this item at the September 14, November 3, December 14, 2020, and January 11, 2021 Government and Public Affairs (GPA) Committee meetings. Staff has brought this item to the Board of Directors in a workshop format so thorough discussion can take place before considering adoption. If approved by the Board, the item will be forwarded to the February 9, 2021 Board Meeting for consideration of adoption.

Attachment: Proposed Legislative Policy Principles Proposed Legislative Policy Principles Powerpoint

Submitted by: Carrie Guarino, Assistant General Manager Prepared by: Eric Grubb, Government & Public Affairs Manager

APPROVAL DATE: XX/XX/XXXX

LEGISLATIVE POLICY PRINCIPLES

The Legislative Policy Principles support the mission of the Cucamonga Valley Water District to provide high quality, safe and reliable water and wastewater services, while practicing good stewardship of natural and financial resources consistent with Board direction. The Government & Public Affairs Department will use the following Legislative Policy Principles as a basis for taking positions on legislative & regulatory measures.

PRINCIPLE OF WATER SUPPLY RELIABILITY • Support the development of a cost-effective Delta conveyance project that meets the “co-equal” goals of water supply reliability and ecosystem restoration. • Support measures to expand both surface and groundwater storage. • Support state funding for cost-effective water use efficiency and conservation measures. • Oppose state & federal legislation that would prevent the development of a Delta conveyance project.

PRINCIPLE OF LOCAL RESOUCES AND SUPPLY DEVELOPMENT • Support expanded options for local supply development. • Support legislation that minimizes cost impacts of new or expanded regulations. • Support streamlining of federal, state, and regional regulatory and reporting mandates. • Oppose measures that do not recognize water savings & water management efforts in our basins.

PRINCIPLE OF WATER QUALITY • Support science-based approaches to regulating constituents of emerging concern. • Support actions to economically & safely expand potable reuse opportunities. • Oppose measures to legislate new water quality standards instead of going through the regulatory process.

PRINCIPLE OF ENVIRONMENTAL STEWARDSHIP • Support measures that credit water agencies for the positive contributions to the State’s climate change goals. • Support modernization of the Endangered Species Act that allows for the best available science, adaptive management, and flexible implementation to be used. • Support making the California Environmental Quality Act more effective and efficient.

PRINCIPLE OF WATER-ENERGY NEXUS • Support measures to decrease energy costs while increasing reliability. • Support funding and flexibility for water agencies to comply with power outage requirements (rolling blackouts). • Support expanded definitions of renewable resources to include hydropower. • Support exploring safe & reliable alternative long-term energy sources.

Page 1 of 2

PRINCIPLE OF FINANCE, TAXES, AND GOVERNANCE • Support measures that protect and advance local governance and special districts. • Support measures that protect local revenue sources, reserve funds, and that maintain tax- exempt status for municipal debt – both original issue and refunding opportunities. • Support measures that reduce the cost of financing water & sewer infrastructure projects. • Oppose measures that impose a fee on a retail water agency that does not directly benefit our customers and does not allow for some control in how the funding is spent. • Oppose measures that impose mandates upon local government that create costly and unnecessary regulations.

PRINCIPLE OF TRANSPARENCY • Support measures that provide a common sense balance between disclosure of data and privacy of individuals. • Support measures that allow for greater access to meaningful data which balance the cost of public resources to implement. • Support measures that encourage the streamlining of processes to respond to public records requests. • Support measures which streamline reporting requirements that reduce confusion for the public and that use comparable and accurate data when examining public employee and elected official compensation.

REVISION DATES:

2020 2013

Page 2 of 2

Legislative Policy Principles

Presented to: Board of Directors Workshop January 26, 2021

1 2021 Legislative Policy Principles •Purpose and Process

◦ Board guidance and direction

◦ Timely response

◦ Annual process

◦ Support District mission

◦ Align with Strategic Goals

2 2021 Legislative Policy Principles •Strategic Policy Areas Shape Policy Principles

◦ Water supply diversification

◦ Emerging water quality concerns

◦ Upgrading and adding new infrastructure

◦ Funding and financing of projects

◦ Environmental impacts

◦ Governance

3 2021 Legislative Policy Principles •Proposed Legislative Policy Principles

◦ Water Supply Reliability

◦ Local Resources and Supply Development

◦ Water Quality

◦ Environmental Stewardship

◦ Water-Energy Nexus

◦ Finance, Taxes, and Governance

◦ Transparency

4 2021 Legislative Policy Principles PRINCIPLE OF WATER SUPPLY RELIABILITY •Support the development of a cost-effective Delta conveyance project that meets the “co-equal” goals of water supply reliability and ecosystem restoration. •Support measures to expand both surface and groundwater storage. •Support state funding for cost-effective water use efficiency and conservation measures. •Oppose state & federal legislation that would prevent the development of a Delta conveyance project.

5 2021 Legislative Policy Principles PRINCIPLE OF LOCAL RESOUCES AND SUPPLY DEVELOPMENT •Support expanded options for local supply development. •Support legislation that minimizes cost impacts of new or expanded regulations. •Support streamlining of federal, state, and regional regulatory and reporting mandates. •Oppose measures that do not recognize water savings & water management efforts in our basins.

6 2021 Legislative Policy Principles PRINCIPLE OF WATER QUALITY •Support science-based approaches to regulating constituents of emerging concern. •Support actions to economically & safely expand potable reuse opportunities. •Oppose measures to legislate new water quality standards instead of going through the regulatory process.

7 2021 Legislative Policy Principles PRINCIPLE OF ENVIRONMENTAL STEWARDSHIP •Support measures that credit water agencies for the positive contributions to the State’s climate change goal’s. •Support modernization of the Endangered Species Act that allows for the best available science, adaptive management, and flexible implementation to be used. •Support making the California Environmental Quality Act more effective and efficient.

8 2021 Legislative Policy Principles PRINCIPLE OF WATER-ENERGY NEXUS •Support measures to decrease energy costs while increasing reliability. •Support funding and flexibility for water agencies to comply with power outage requirements (rolling blackouts). •Support expanded definitions of renewable resources to include hydropower. •Support exploring safe & reliable alternative long term energy sources.

9 2021 Legislative Policy Principles PRINCIPLE OF FINANCE, TAXES, AND GOVERNANCE •Support measures that protect the needs of and advance local governance and special districts. •Support measures that protect local revenue sources, reserve funds, and that maintain tax- exempt status for municipal debt – both original issue and refunding opportunities. •Support measures that reduce the cost of financing water & sewer infrastructure projects. •Oppose measures that impose a fee on a retail water agency that does not directly benefit our customers and does not allow for some control in how the funding is spent. •Oppose measures that impose mandates upon local government that create costly and unnecessary regulations.

10 2021 Legislative Policy Principles PRINCIPLE OF TRANSPARENCY •Support measures that provide a common sense balance between disclosure of data and privacy of individuals. •Support measures that allow for greater access to meaningful data which balance the cost of public resources to implement. •Support measures that encourage the streamlining of processes to respond to public records requests. •Support measures which streamline reporting requirements that reduce confusion for the public and that use comparable and accurate data when examining public employee and elected official compensation.

11 Process GPA Committee Review Dates •September 14, 2020 •November 3, 2020 •December 14, 2020 •January 11, 2021

Board Review •Board Workshop (January 26) ◦ Review Policy Principles •Board Meeting (February 9) ◦ Adopt Policy Principles •Legislative update with West Coast Advisors (spring 2021)

12