~ ~ Cucamonga Valley® ~ Water District

Service Beyond Expectation

CUCAMONGA VALLEY WATER DISTRICT BOARD OF DIRECTORS MEETING AGENDA

February 23, 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. PRESENTATIONS Roberta Perez, A) ACWA/JPIA President’s Special Recognition Awards Human Resources Manager

FEBRUARY 23, 2021 BOARD MEETING AGENDA PAGE 2

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

B) IEUA Board Meeting Agenda

6. 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 February 9, 2021 Regular Board Meeting.

B) Approve Board Calendar of Events.

C) Approve Cash & Investment Report for month ending January 31, 2021.

D) Approve Cash Disbursements for month ending January 31, 2021.

E) Receive and File February Government & Public Affairs Report.

F) Adopt Resolution No. 2021-2-1 Amending Administrative Policy No. 1.4, Investment

7. DEFERRED FY2021 AND FY2022 CIP PROJECTS Chad Brantley, REVIEW AND RELEASE THE LIST OF PREVIOUSLY DEFERRED CAPITAL Director of Finance IMPROVEMENT PROJECTS and Technology Services

8. BOARD COMMITTEE REPORTS

A) February 2, 2021 Engineering Committee

B) February 4, 2021 Human Resources/Risk Management Committee

C) February 10, 2021 Finance Committee

9. BOARD MEMBER REPORTS

10. 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 02-18-21 u January 13, 2021 YOUR BEST PROTECTION

Cucamonga Valley Water District (C009) P.O. Box 638 ACWAJPIA Rancho Cucamonga, CA 91729-0638

P. 0. Box 619082 General Manager: Roseville, CA 95661-9082

phone Each year at Fall Conference, the JPIA recognizes members that 916.786.5742 have a Loss Ratio of 20% or less in either of the Liability, 800.231.5742 Property, or Workers' Compensation programs (loss ratio= total losses/ total premiums). www.acwajpia.com The members with this distinction receive the "President's Special Recognition Award" certificate for each Program that President they qualify in. E.G. "Jerry" Gladbach The JPIA is extremely pleased to present Cucamonga Valley Vice President Water District (C009) with this special recognition and TomCuquet commends the District on the hard work in reducing claims.

Chief Executive Officer Congratulations to you, your staff, Board, and District. Keep up Walter "Andy" Sells the good work!

The JPIA wishes you the best in 2021. Executive Committee Fred Bockmiller Sincerely, Tom Cuquet David Drake E.G. "Jerry" Gladbach Brent Hastey Melody A. McDonald E.G . "Jerry" Gladbach Randall Reed President J. Bruce Rupp Pamela Tobin Enclosure: President's Special Recognition Award(s)

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©GOES3462 LITKO IN U.S.A.

AGENDA REGULAR MEETING OF THE BOARD OF DIRECTORS

WEDNESDAY, FEBRUARY 17, 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.

NEW, PROMOTED AND RECLASSIFIED EMPLOYEE INTRODUCTIONS

1

PRESENTATIONS

• INVESTMENT PERFORMANCE REVIEW FOR THE QUARTER ENDED DECEMBER 31, 2020 – presented by Richard Babbe, PFM Senior Managing Consultant

1. PUBLIC HEARING

A. ADOPTION OF RESOLUTION NO. 2021-2-1, ADOPTING AMENDMENTS TO THE INLAND EMPIRE UTILITIES AGENCY’S CONFLICT OF INTEREST CODE Staff recommends that the Board:

1. Hold a Public Hearing for the Board to receive public comments to adopt amendments to the IEUA’s Conflict of Interest Code, establishing disclosure categories specifying the types of economic interests that must be reported by designated positions within the Agency; and

2. After closing the Public Hearing, adopt Resolution No. 2021-2-1, adopting amendments to the Inland Empire Utilities Agency’s Conflict of Interest Code.

2. 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 January 6, 2021 Board Workshop and the January 20, 2021 Board Meeting.

B. REPORT ON GENERAL DISBURSEMENTS Staff recommends that the Board approve the total disbursements for the month of December 2020, in the amount of $33,226,967.60.

C. ORCHARD RECYCLED WATER TURNOUT IMPROVEMENTS CONSTRUCTION CONTRACT AWARD (Eng/Ops/WR) Staff recommends that the Board:

1. Award a construction contract for the Orchard Recycled Water Turnout Improvements, Project No EN17041, to Cedro Construction, Inc., in the amount of $128,297; and

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

2

D. ADOPTION OF RESOLUTION NO. 2021-2-2, AMENDING THE AGENCY’S SALARY SCHEDULE/MATRIX FOR ALL GROUPS Staff recommends that the Board adopt Resolution No. 2021-2-2, amending the Agency’s Salary Schedule/Matrix for all groups.

3. INFORMATION ITEMS

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

B. IERCA FISCAL YEAR 2019/20 AUDITED FINANCIAL REPORT (WRITTEN/POWERPOINT)

RECEIVE AND FILE INFORMATION ITEMS

C. REGIONAL WATER USE EFFICIENCY PROGRAMS ANNUAL REPORT - FY 2019/20 (WRITTEN/POWERPOINT) (Eng/Ops/WR)

D. SEMI-ANNUAL LABORATORY UPDATE (POWERPOINT) (Eng/Ops/WR)

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

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

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)

4. AGENCY REPRESENTATIVES’ REPORTS

A. SAWPA REPORT (WRITTEN) February 16, 2021 SAWPA Commission meeting

B. MWD REPORT (WRITTEN) February 9, 2021 MWD Board meeting

C. REGIONAL SEWERAGE PROGRAM POLICY COMMITTEE REPORT (WRITTEN) February 4, 2021 Regional Sewerage Program Policy Committee meeting

3

D. CHINO BASIN WATERMASTER REPORT (WRITTEN) January 28, 2021 CBWM Board meeting

E. CHINO BASIN DESALTER AUTHORITY (WRITTEN) February 4, 2021 Special CDA Board meeting

F. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY (WRITTEN) February 1, 2021 IERCA Board meeting

5. GENERAL MANAGER’S REPORT (WRITTEN)

6. BOARD OF DIRECTORS’ REQUESTED FUTURE AGENDA ITEMS

7. 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(a) – CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Chino Basin Municipal Water District vs. City of Chino, Case No. RCV51010

B. PURSUANT TO GOVERNMENT CODE SECTION 54957.6 – CONFERENCE WITH LABOR NEGOTIATIONS Successor Negotiations – All Bargaining Units Negotiating Parties: Michael Dueñas, Employee and Labor Relations Advocate and Recognized Employee Organizations

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, February 11, 2021.

Denise Garzaro, CMC

4

MINUTES OF A REGULAR MEETING OF THE CUCAMONGA VALLEY WATER DISTRICT BOARD OF DIRECTORS February 9, 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 Reed. Ms. Taya Victorino took roll call to 6:00 p.m. ensure all Board Members were present in person or via teleconference.

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 Reed led the Pledge of Allegiance.

In Attendance: Board Randall James Reed, President Luis Cetina, Vice President James V. Curatalo, Jr., Director (via teleconference) Mark Gibboney, Director (via teleconference) Kevin Kenley, Director

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

Mike Bogin, Information Tech Specialist Agnes Boros, Finance Manager (via teleconference) Chad Brantley, Director of Finance and Technology Services Frank Chu, Information Technology Manager (via teleconference) 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) Rosa Lopez, HR Assistant (via teleconference) Minutes – Regular Board Meeting of February 9, 2021 Page 2 of 5

Gidti Ludesirishoti, Associate Engineer (via teleconference) Mike Maestas, Water Production Manager Erin Morales, Government & Public Affairs Supervisor (via teleconference) Mark Perez, Lead Water Treatment Plant Operator Roberta Perez, Human Resources Manager JR Roberts, Water Treatment Plant Manager Tuan Truong, Engineering Manager (via teleconference) Taya Victorino, Executive Assistant, Board of Directors

Guests Richard Babbe, PFM Financial Consultants (via teleconference) Aubrey Perez, Guest of Mark Perez Garrett Perez, Guest of Mark Perez Nicole Perez, Guest of Mark Perez

ADDITIONS/DELETIONS TO THE AGENDA ADDITIONS/ None. DELETIONS

PUBLIC COMMENT PUBLIC COMMENT None.

PRESENTATIONS PRESENTATIONS A) Employee Annual Years of Service Awards Program Ms. Roberta Perez shared a video recognizing employees for their current years of service with the District. The following employees were recognized:  5 Years – Bill Barrington, Alexandrea Hernandez, Sean Wasko, Adam Gomez, Michael Hoffarth  10 Years – Taya Victorino, Augie Galaz  15 Years – Randy Rockwell, Frank Chu, Adriana Vega, Robbie Victorino, David Scott, Elizabeth McReynolds, Jacob Johnson  20 Years – Roberta Perez  30 Years – George Boltze, Eric Johnson

B) Board of Directors Employee Innovation Recognition Program Ms. Roberta Perez shared a video recognizing the Customer Service and Field Service Divisions as the winners of the Board of Directors Employee Innovation Recognition Program.

Minutes – Regular Board Meeting of February 9, 2021 Page 2 of 5

C) Commitment to Excellence Employee Recognition Program Ms. Roberta Perez shared a video recognizing Agnes Boros as the winner of the Commitment to Excellence Program.

The Board collectively congratulated and thanked all employees recognized for all three programs.

D) Employee Retirement- Recognition for Mark Perez’s Years of Service Mr. JR Roberts recognized Mr. Mark Perez for his 27 years of service and shared a video of photos and memories of Mark’s years at the District.

Mark thanked the Board and District for the opportunity to work for this organization and with the great people he has come to know while at CVWD.

The Board collectively congratulated Mark and his family and thanked him for his contributions to the District and its customers.

GENERAL MANAGER/CEO REPORTS GENERAL A) District Updates MANAGER/CEO Mr. John Bosler, General Manager/CEO reported the following: REPORTS  Invited Mr. Chad Brantley to the podium to provide a financial update. o Mr. Brantley provided a PowerPoint update on water production and unemployment data and how it has affected District finances. He invited Mr. Richard Babbe to provide a PowerPoint update on national financial trends in comparison to the District’s financial state.

CONSENT CALENDAR CONSENT A) Approve Minutes of the January 26, 2021 Regular Board Meeting. CALENDAR B) Approve Minutes of the February 1, 2021 Special Board Meeting. C) Approve Board Calendar of Events. D) Receive and File December 2020 Water Production Report. PASSED 5-0 E) Approve the District’s Legislative Policy Principles.

On a motion by Vice President Cetina, and seconded by Director Kenley 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.

Minutes – Regular Board Meeting of February 9, 2021 Page 2 of 5

BOARD COMMITTEE REPORT BOARD A) December 15, 2020 Water Resources Committee COMMITTEE Director Curatalo reported the notes accurately reflect what occurred at the REPORTS meeting. B) January 19, 2021 Engineering Committee President Reed reported the notes accurately reflect what occurred at the meeting. C) January 21, 2021 Water Resources Committee Director Curatalo reported the notes accurately reflect what occurred at the meeting.

BOARD MEMBER REPORTS BOARD MEMBER Director Curatalo REPORTS  Nothing additional to report at this time. Director Gibboney  Nothing additional to report at this time. Director Kenley  Nothing additional to report at this time. Vice President Cetina  Commended President Reed for speaking out on the District’s behalf at the IEUA Regional Sewer Policy Committee Meeting on February 4, 2021.  Attended a webinar hosted by County Superintendent Ted Alejandre and received an update on the impact of COVID regulations on students of the Inland Empire.  Expressed his gratitude to San Bernardino County for their handling of the distribution of the COVID vaccine and further expressed his displeasure with the State of California’s complicated criteria to receive the vaccine. President Reed  Thanked Vice President Cetina for the compliment. He elaborated that his comments during the IEUA meeting emphasized his goal to build trust among the member agencies through listening to each other.  Attended ACWA/JPIA Risk Management and Executive Committee meetings earlier today. He gave an update on JPIA’s efforts to find outside coverage for higher end insurance for the JPIA pool.

Minutes – Regular Board Meeting of February 9, 2021 Page 2 of 5

ADJOURNMENT ADJOURNED There being no further business to come before the Board, President Reed adjourned AT 7:00 p.m. the meeting at 7:00 p.m.

______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 6 EVENT (Last Revised 02-18-21) 2021 Feb. 23 ACWA Energy Committee Meeting Yes Webinar Appr Feb. 9

Feb. 24 MWDOC 2021 Water Policy Forum Yes Yes Webinar Appr Feb. 9

Feb. 24 ACWA DC Conf- Congressional Speeches Yes Yes Webinar

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

Feb. 26 IEUA Prep Meeting w/GM Yes Yes Rancho Cucamonga Appr Feb. 9

* 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 6 (Last Revised 02-18-21) DATE OF EVENT DETAILS CURATALO CETINA GIBBONEY KENLEY REED BOSLER* EVENT 2021 March 2 ACWA Agriculture Committee Meeting Yes Webinar Appr Feb. 9

March 3 IEUA Board Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Feb. 9 Feb. 9 Feb. 9 Feb. 9 Feb. 9

March 4 RC Chamber Virual BCN Yes Webinar Appr Feb. 9

March 4 IEUA Regional Sewer Policy Cmte Yes Yes Webinar Appr Appr Feb. 9 Feb. 9

March 8 ASBCSD Board Meeting Yes Webinar

March 11 ACWA Virtual Legislative Symposium Yes Webinar

March 11 CBWM Appropriative Pool Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Feb. 9 Feb. 9 Feb. 9 Feb. 9 Feb. 9

* 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 6 (Last Revised 02-18-21) DATE OF EVENT DETAILS CURATALO CETINA GIBBONEY KENLEY REED BOSLER* EVENT 2021 March 12 IEUA Prep Meeting w/GM Yes Yes Rancho Cucamonga Appr Feb. 9

March 15 ASBCSD Membership Meeting Yes Webinar Appr Feb. 9

March 17 ACWA DC Conf- Federal Water Issues Yes Yes Yes Webinar

March 17 IEUA Board Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Feb. 9 Feb. 9 Feb. 9 Feb. 9 Feb. 9

March 18 CBWM Advisory Committee Meeting Yes Yes Webinar Appr Feb. 9

March 24 ACWA DC Conf- Federal Water Issues Yes Yes Yes Webinar

March 25 CBWM Board Meeting Yes Yes Yes Yes Yes Yes Webinar Appr Appr Appr Appr Appr Feb. 9 Feb. 9 Feb. 9 Feb. 9 Feb. 9

* 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 6 (Last Revised 02-18-21) DATE OF EVENT DETAILS CURATALO CETINA GIBBONEY KENLEY REED BOSLER* EVENT 2021 March 26 IE Chamber Alliance Meeting Yes Webinar Appr Feb. 9

March 26 CBWM Court Call Yes Yes Yes Yes Yes Yes Conference Call Appr Appr Appr Appr Appr Feb. 9 Feb. 9 Feb. 9 Feb. 9 Feb. 9

March 31 RC Chamber Board Meeting Yes Webinar Appr Feb. 9

March 31 ACWA DC Conf- Federal Water Issues Yes Yes Yes Webinar

* 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 5 of 6 (Last Revised 02-18-21) POST EVENT APPROVAL (BOARD CALENDAR OF EVENTS) DATE OF EVENT DETAILS CURATALO CETINA GIBBONEY KENLEY REED BOSLER* EVENT 2021 Feb. 11 Fontana Chamber Membership Meeting Yes Webinar

Feb. 11 Landscape Workshop- Rainwater Harvesting Yes Webinar

Feb. 12 Meeting with Marco Tule, IEUA Yes Web Meeting

Feb. 18 ACWA Region 9 State Legislative Cmt Prep Yes Webinar

Feb. 18 CBWM Appropriative Pool Closed Session Yes No Yes Yes Yes Yes Webinar

Feb. 19 SCWC Water Quality Matters Yes Yes Yes Webinar Appr Feb. 9

* 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 6 of 6 (Last Revised 02-18-21) UPCOMING DISTRICT & COMMUNITY EVENTS 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: February 23, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Cash and Investment Report – January 31, 2021

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 $56,645,767 (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 $99,162,336 of which $9,958,830 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 $29,804 (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, January 31, 2021

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

INVESTMENT

PORTFOLIO

RESTRICTED FUNDS

January 31, 2021

CUCAMONGA VALLEY WATER DISTRICT Cash and Investment Report - (SUMMARY) For the Period Ended January 31, 2021 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 29,287 29,287 29,287 98.27% 0.01% 0.01% Total Cash & Equivalents$ 29,287 $ 29,287 $ 29,287 98.27%

Investments: Local Agency Investment Fund$ 517 $ 517 $ 517 1.73% 0.46% 0.46% Total Investments$ 517 $ 517 $ 517 1.73%

Total Cash and Investments$ 29,804 $ 29,804 $ 29,804 100.00% Portfolio Effective Rate of Return 0.02% 0.02%

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$ 29,804 100.00%$ 29,804 100.00%$ 29,804 100.00% Total$ 29,804 100.00%$ 29,804 100.00%$ 29,804 100.00%

SUMMARY OF PORTFOLIO OWNERSHIP PORTFOLIO PERFORMANCE BENCHMARKS Book Percent Value of Yield (historical cost) Portfolio District - Restricted$ 29,804 100.00%1YR US Treasury Rolling Average 0.26% 2YR US Treasury Rolling Average 1.08% 3YR US Treasury Rolling Average 1.61% 5YR US Treasury Rolling Average 1.68% Total Cash and Investments$ 29,804 100.00% Cucamonga Valley Water Restricted Fund Portfolio Management Portfolio Summary January 31, 2021

Par Market Book % of Days to YTM Investments Value Value Value Portfolio Term Mat./Call Money Market Account 29,286.32 29,286.32 29,286.32 98.26 1 1 0.010 Local Agency Investment Funds 517.25 517.25 517.25 1.74 1 1 0.458 29,803.57 29,803.57 29,803.57 100.00% 1 1 0.018 Investments

Total Earnings January 31 Month Ending Fiscal Year To Date Current Year 92.37 5,540.87 Average Daily Balance 231,166.15 Effective Rate of Return 0.47%

______2-12-2021 Chad Brantley CPA, Director of Finance

Reporting period 01/01/2021-01/31/2021 Portfolio GEN2 Data Updated: FUNDSNAP: 02/10/2021 09:19 NL! AP Run Date: 02/10/2021 - 09:20 PM (PRF_PM1) 7.2.5 Report Ver. 7.3.1 Restricted Fund

Portfolio Management Page 1 Portfolio Details - Investments January 31, 2021

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 0.00 0.00 0.00 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 29,286.32 29,286.32 29,286.32 0.010 0.010 0.010 1

Subtotal and Average 30,334.88 29,286.32 29,286.32 29,286.32 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 517.25 517.25 517.25 0.458 0.452 0.458 1

Subtotal and Average 200,831.27 517.25 517.25 517.25 0.452 0.458 1

Total and Average 231,166.15 29,803.57 29,803.57 29,803.57 0.018 0.018 1

Portfolio GEN2 Data Updated: FUNDSNAP: 02/10/2021 09:19 NL! AP Run Date: 02/10/2021 - 09:20 PM (PRF_PM2) 7.2.5

Report Ver. 7.3.1

INVESTMENT

PORTFOLIO

UNRESTRICTED FUNDS

January 31, 2021

CUCAMONGA VALLEY WATER DISTRICT Cash and Investment Report - (SUMMARY) For the Period Ended January 31, 2021 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$ 1,621,968 $ 1,621,968 $ 1,621,968 1.61% 0.00% 0.00% Sweep Account - - - 0.00% 0.00% 0.00% Money Market Account 1,509,668 1,509,668 1,509,668 1.50% 0.03% 0.03% Total Cash & Equivalents$ 3,131,636 $ 3,131,636 $ 3,131,636 3.11%

Investments: Local Agency Investment Fund$ 53,514,131 $ 53,514,131 $ 53,514,131 53.20% 0.46% 0.46% CVWD Portfolio Federal Agencies 6,101,614 6,153,654 6,370,650 6.33% 1.65% 1.84% Corporate Medium-Term Notes 12,551,448 12,536,276 13,034,580 12.96% 2.53% 2.40% Negotiable CDs - - - 0.00% 0.00% 0.00% U.S. Treasuries 23,863,507 23,810,571 24,530,249 24.39% 1.80% 1.89% Total Investments$ 96,030,700 $ 96,014,632 $ 97,449,610 96.89%

Total Cash and Investments$ 99,162,336 $ 99,146,268 $ 100,581,246 100.00% Portfolio Effective Rate of Return 1.12% 1.13%

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$ 53,514,131 55.73%$ 53,514,131 54.91%$ 53,514,131 55.73% Within Year 2020 14,450,072 15.05% 14,515,531 14.90% 14,450,072 15.05% Within Year 2021 8,221,750 8.56% 8,542,680 8.77% 8,221,750 8.56% Within Year 2022 4,991,364 5.20% 5,190,351 5.33% 4,991,364 5.20% Within Year 2023 14,853,383 15.47% 15,686,917 16.10% 14,853,383 15.47% Within Year 2024 - 0.00% - 0.00% 0 0.00%

Total$ 96,030,700 100.00%$ 97,449,610 100.00%$ 96,030,700 100.00%

SUMMARY OF PORTFOLIO OWNERSHIP PORTFOLIO PERFORMANCE BENCHMARKS Book Percent Value of Yield (historical cost) Portfolio 1YR US Treasury Rolling Average 0.26% District - Unrestricted$ 89,203,506 89.96%2YR US Treasury Rolling Average 1.08% Amount owed to IEUA for Sewer 3YR US Treasury Rolling Average 1.61% Capital Capacity Fees 9,958,830 10.04%5YR US Treasury Rolling Average 1.68% Total Cash and Investments$ 99,162,336 100.00% Cucamonga Valley Water General Fund - Unrestricted Portfolio Management Portfolio Summary January 31, 2021

Par Market Book % of Days to YTM Investments Value Value Value Portfolio Term Mat./Call Checking Account 1,621,968.42 1,621,968.42 1,621,968.42 1.64 1 1 0.000 Money Market Account 1,509,668.07 1,509,668.07 1,509,668.07 1.52 1 1 0.030 Local Agency Investment Funds 53,514,130.78 53,514,130.78 53,514,130.78 53.97 1 1 0.458 Medium Term Notes 12,428,000.00 13,034,579.84 12,536,275.74 12.64 1,600 785 2.403 Federal Agency Bullets 6,160,000.00 6,370,648.75 6,153,653.28 6.21 1,807 579 1.841 Treasury Coupon Securities 23,850,000.00 24,530,250.50 23,810,571.42 24.02 1,595 643 1.888 99,083,767.27 100,581,246.36 99,146,267.71 100.00% 698 290 1.119 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 99,083,767.27 100,601,530.83 99,166,552.18 698 290 1.119

Total Earnings January 31 Month Ending Fiscal Year To Date Current Year 98,092.89 741,792.57 Average Daily Balance 98,307,497.68 Effective Rate of Return 1.17%

______2-12-2021 Chad Brantley CPA, Director of Finance

Reporting period 01/01/2021-01/31/2021 Portfolio GEN2 Data Updated: FUNDSNAP: 02/10/2021 09:19 NL! AP Run Date: 02/10/2021 - 09:19 PM (PRF_PM1) 7.2.5 Report Ver. 7.3.1 General Fund - Unrestricted

Portfolio Management Page 1 Portfolio Details - Investments January 31, 2021

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 1,621,968.42 1,621,968.42 1,621,968.42 0.000 0.000 1

Subtotal and Average 2,024,057.40 1,621,968.42 1,621,968.42 1,621,968.42 0.000 0.000 1 Money Market Account 82525287S 10344 Invesco Stit Govt & Agency 1,509,668.07 1,509,668.07 1,509,668.07 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 686,207.82 1,509,668.07 1,509,668.07 1,509,668.07 0.030 0.030 1 Local Agency Investment Funds LAIF GEN 10007 Local Agency Investment Fund 53,514,130.78 53,514,130.78 53,514,130.78 0.458 0.452 0.458 1

Subtotal and Average 51,645,242.05 53,514,130.78 53,514,130.78 53,514,130.78 0.452 0.458 1 Medium Term Notes 0258M0EB1 10401 AMERICAN EXPRESS CREDIT CORP 05/31/2016 178,000.00 178,628.34 177,978.97 2.250 2.267 2.298 63 05/05/2021 717081ES8 10464 AMHERST PIERPOINT SECURITIES L 04/05/2019 500,000.00 538,405.00 503,845.60 2.950 2.644 2.681 1,138 03/15/2024 02665WBP5 10496 American Honda Finance 01/13/2020 500,000.00 533,830.00 511,860.64 2.900 2.054 2.082 1,110 02/16/2024 037833CQ1 10447 Apple Inc 03/14/2018 1,000,000.00 1,024,010.00 991,786.37 2.300 2.947 2.988 434 05/11/2022 06406FAB9 10400 Bank of New York Mellon 05/23/2016 575,000.00 576,799.75 574,966.42 2.050 2.046 2.074 91 05/03/2021 06051GEU9 10492 Bank of America 12/06/2019 500,000.00 528,790.00 511,168.61 3.300 2.078 2.107 709 01/11/2023 05531FAV5 10397 Branch Banking & Trust 05/13/2016 275,000.00 275,954.25 274,994.24 2.050 2.030 2.058 98 05/10/2021 05531FAV5 10398 Branch Banking & Trust 05/13/2016 225,000.00 225,780.75 224,994.17 2.050 2.032 2.060 98 05/10/2021 05531FBH5 10476 Branch Banking & Trust 08/06/2019 500,000.00 532,695.00 501,954.93 2.500 2.346 2.379 1,246 08/01/2024 084670BR8 10494 Berkshire Hathaway 12/06/2019 500,000.00 523,625.00 508,796.69 2.750 1.822 1.847 772 03/15/2023 14913QAA7 10446 Caterpillar Finl Service 03/06/2018 500,000.00 513,660.00 496,080.38 2.400 2.982 3.024 490 06/06/2022 19416QEG1 10477 Colgate Palmolive 08/06/2019 500,000.00 544,560.00 518,489.43 3.250 1.959 1.986 1,138 03/15/2024 589331AT4 10461 Goldman Sachs Bank 03/15/2019 500,000.00 514,725.00 497,615.33 2.400 2.673 2.710 591 09/15/2022 427866AZ1 10463 Goldman Sachs Bank 04/05/2019 500,000.00 533,575.00 508,802.32 3.375 2.515 2.550 833 05/15/2023 244199BE4 10466 Goldman Sachs Bank 04/29/2019 575,000.00 589,760.25 574,854.86 2.600 2.583 2.619 492 06/08/2022 38141GVM3 10493 Goldman Sachs Bank 12/06/2019 500,000.00 550,455.00 523,532.60 4.000 2.355 2.388 1,126 03/03/2024 44932HAC7 10445 IBM 03/06/2018 500,000.00 516,750.00 493,301.54 2.200 3.060 3.102 584 09/08/2022 458140BB5 10436 Intel Corp 07/11/2017 500,000.00 512,665.00 500,027.76 2.350 2.313 2.345 464 05/11/2022 46625HJX9 10485 JPMorgan Chase Bank NA 09/09/2019 1,000,000.00 1,100,200.00 1,046,178.02 3.625 2.110 2.139 1,197 05/13/2024 91159HHX1 10475 KEYBANC CAPITAL MARKETS 08/06/2019 500,000.00 531,750.00 502,396.59 2.400 2.221 2.252 1,214 07/30/2024 88579YAX9 10502 3M Company 01/22/2019 600,000.00 625,278.00 590,598.66 2.250 2.999 3.041 744 03/15/2023 68389XBB0 10435 Oracle Corp 07/11/2017 500,000.00 512,360.00 501,144.04 2.500 2.279 2.311 468 05/15/2022 911312BT2 10501 United Parcel Service 09/09/2019 500,000.00 528,885.00 503,390.57 2.200 1.973 2.000 1,277 09/01/2024 254687FK7 10500 Walt Disney Company 09/09/2019 500,000.00 521,438.50 497,517.00 1.750 1.870 1.896 1,306 08/30/2024

Portfolio GEN2 Data Updated: FUNDSNAP: 02/10/2021 09:19 NL! AP Run Date: 02/10/2021 - 09:19 PM (PRF_PM2) 7.2.5

Report Ver. 7.3.1 General Fund - Unrestricted

Portfolio Management Page 2 Portfolio Details - Investments January 31, 2021

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 12,537,409.93 12,428,000.00 13,034,579.84 12,536,275.74 2.370 2.403 785 Federal Agency Bullets 3130A8QS5 10408 Federal Home Loan Bank 07/18/2016 1,000,000.00 1,004,690.00 999,391.02 1.125 1.247 1.264 163 07/14/2021 3130AFW94 10459 Federal Home Loan Bank 02/26/2019 1,710,000.00 1,830,982.50 1,705,538.08 2.500 2.557 2.592 1,107 02/13/2024 3135G0K69 10405 Federal National Mtg Assn 06/29/2016 1,525,000.00 1,529,681.75 1,525,391.42 1.250 1.134 1.149 94 05/06/2021 3135G0N82 10416 Federal National Mtg Assn 08/19/2016 635,000.00 639,051.30 634,719.65 1.250 1.316 1.334 197 08/17/2021 3135G0N82 10417 Federal National Mtg Assn 08/19/2016 190,000.00 191,212.20 189,929.14 1.250 1.303 1.321 197 08/17/2021 3135G0V34 10458 Federal National Mtg Assn 02/11/2019 1,100,000.00 1,175,031.00 1,098,683.97 2.500 2.508 2.543 1,099 02/05/2024

Subtotal and Average 6,153,559.16 6,160,000.00 6,370,648.75 6,153,653.28 1.816 1.841 579 Treasury Coupon Securities 912828WN6 10419 U.S. Treasury 09/06/2016 2,000,000.00 2,012,420.00 2,005,068.09 2.000 1.181 1.198 119 05/31/2021 912828D72 10421 U.S. Treasury 10/05/2016 1,000,000.00 1,010,860.00 1,004,381.11 2.000 1.199 1.216 211 08/31/2021 912828D72 10422 U.S. Treasury 12/05/2016 1,875,000.00 1,895,362.50 1,875,678.91 2.000 1.907 1.934 211 08/31/2021 912828G87 10433 U.S. Treasury 06/29/2017 1,700,000.00 1,731,212.00 1,705,226.04 2.125 1.748 1.772 333 12/31/2021 912828V72 10437 U.S. Treasury 07/11/2017 1,275,000.00 1,297,414.50 1,274,629.80 1.875 1.879 1.905 364 01/31/2022 912828F96 10440 U.S. Treasury 08/31/2017 1,000,000.00 1,013,980.00 1,002,548.04 2.000 1.622 1.644 272 10/31/2021 912828J76 10444 U.S. Treasury 11/30/2017 1,500,000.00 1,528,470.00 1,495,017.90 1.750 2.023 2.051 423 03/31/2022 912828X47 10453 U.S. Treasury 11/30/2018 1,500,000.00 1,532,865.00 1,482,226.64 1.875 2.844 2.884 453 04/30/2022 912828V80 10460 U.S. Treasury 03/14/2019 500,000.00 530,725.00 497,341.08 2.250 2.406 2.439 1,094 01/31/2024 912828U65 10465 U.S. Treasury 04/16/2019 2,200,000.00 2,229,898.00 2,189,229.05 1.750 2.332 2.364 302 11/30/2021 912828X70 10467 U.S. Treasury 05/13/2019 1,150,000.00 1,216,263.00 1,140,001.69 2.000 2.254 2.285 1,184 04/30/2024 9128286R6 10468 U.S. Treasury 05/03/2019 1,250,000.00 1,332,037.50 1,247,337.58 2.250 2.288 2.320 1,184 04/30/2024 912828XT2 10469 U.S. Treasury 06/06/2019 1,000,000.00 1,058,750.00 1,005,030.18 2.000 1.816 1.841 1,215 05/31/2024 912828Y87 10474 U.S. Treasury 08/06/2019 2,000,000.00 2,104,620.00 2,006,623.94 1.750 1.628 1.651 1,276 07/31/2024 912828S92 10478 U.S. Treasury 08/15/2019 1,450,000.00 1,489,541.50 1,437,666.76 1.250 1.582 1.604 910 07/31/2023 912828S92 10479 U.S. Treasury 08/06/2019 1,450,000.00 1,489,541.50 1,438,841.21 1.250 1.548 1.570 910 07/31/2023 912828YY0 10495 U.S. Treasury 01/13/2020 1,000,000.00 1,056,290.00 1,003,723.40 1.750 1.628 1.650 1,429 12/31/2024

Subtotal and Average 25,261,021.32 23,850,000.00 24,530,250.50 23,810,571.42 1.862 1.888 643

Total and Average 98,307,497.68 99,083,767.27 100,581,246.36 99,146,267.71 1.104 1.119 290

Portfolio GEN2 Data Updated: FUNDSNAP: 02/10/2021 09:19 NL! AP Run Date: 02/10/2021 - 09:19 PM (PRF_PM2) 7.2.5

INVESTMENT

PORTFOLIO

SUPPLEMENTAL INFORMATION

UNRESTRICTED FUNDS

January 31, 2021

Cucamonga Valley Water General Fund - Unrestricted Maturity Report Sorted by Maturity Date Amounts due during January 1, 2021 - January 31, 2021

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

912828N8910452 100 TRC USTR 1,500,000.00 01/31/2021 11/30/2018 1.3751,500,000.00 10,312.50 1,510,312.50 10,312.50

Total Maturities 1,500,000.00 1,500,000.00 10,312.50 1,510,312.50 10,312.50

Portfolio GEN2 Data Updated: ~REPORT~: 02/10/2021 09:06 NL! AP Run Date: 02/10/2021 - 09:06 MA (PRF_MA) 7.1.1 Report Ver. 7.3.1

INVESTMENT

PORTFOLIO

SUPPLEMENTAL REPORTS

UNRESTRICTED FUNDS

January 31, 2021

CUCAMONGA VALLEY WATER DISTRICT Investment Policy Compliance Report For the Period Ended January 31, 2021 Unrestricted Funds

Investment Type Book Value Market Value CVWD Policy Limit Description of Limit Checking$ 1,621,968 $ 1,621,968 N/A None Sweep & Money Market 1,509,668 1,509,668 $ 20,116,249 Up to 20% of portfolio LAIF 53,514,131 53,514,131 65,000,000 Up to $65 Million Federal Agencies 6,101,614 6,370,650 100,581,246 Up to 100% of portfolio U.S. Treasuries 23,863,507 24,530,249 100,581,246 Up to 100% of portfolio Corp Medium Term Notes 12,551,448 13,034,580 30,174,374 Up to 30% of portfolio with 5 year maturity max Negotiable CDs - - 30,174,374 Up to 30% of portfolio Supranational - - 30,174,374 Up to 30% of portfolio with 5 year maturity max

Total Portfolio$ 99,162,336 $ 100,581,246

Portfolio Balances vs. CVWD Investment Policy Limits By Investment Type

$100,581,246 $100,581,246 $100

$80

$65,000,000

$60 Millions

$40 $30,174,374 $30,174,374 $30,174,374 $20,116,249 $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 1/2016 3/2016 5/2016 7/2016 9/2016 1/2017 3/2017 5/2017 7/2017 9/2017 1/2018 3/2018 5/2018 7/2018 9/2018 1/2019 3/2019 5/2019 7/2019 9/2019 1/2020 3/2020 5/2020 7/2020 9/2020 1/2021 11/2016 11/2017 11/2018 11/2019 11/2020 Analysis of Investment Porfolio Performance Interest Income - Actual vs Budget For the Period Ended January 31, 2021 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

1,000,000 950,892 848,458 800,000

600,000 450,265

400,000 275,653 155,600 168,989 200,000 20,000 90,767 11,667 5,623 - Restricted Funds LAIF Bonds Totals CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 01/07/2021 11732 BABCOCK & SONS LAB SAMPLES 180.00 11733 DE LOACH, ROBERT MEDICARE REIMBURSEMENT 437.30 11734 FERGUSON WATERWORKS #1083 RESTOCK INVENTORY 1,111.33 11735 FIEN, BETTY MEDICARE REIMBURSEMENT 619.50 11736 FRASCO PROFILES IT SPECIALIST 1 112.00 11737 GRAINGER FLEET SUPPLIES 113.21 11738 INLAND EMPIRE UTILITIES AGENCY IMPORTED WATER 957,527.48 11739 INTERLICCHIA, DENNIS MEDICARE REIMBURSEMENT 148.50 11740 MENDEZ, ELISABETH EMPLOYEE RELATIONS 10.00 11741 PASTOR, DIANE MEDICARE REIMBURSEMENT 220.20 11742 RAFTELIS FINANCIAL CONSULTANTS, INC COMMUNICATIONS & OUTREACH 2,305.00 11743 RODRIGUEZ, GEORGE MEDICARE REIMBURSEMENT 144.60 11744 SPITERI, INGRID MEDICARE REIMBURSEMENT 437.30 11745 STATEWIDE TOWING & RECOVERY TOWING SERVICE 150.00 11746 UNDERGROUND SERVICE ALERT WATER SERVICE 941.73 11747 VELOCITY TRUCK-CENTERS FLEET SUPPLIES 47.83 11748 WEST COAST ADVISORS STATE ADVOCACY SERVICES 3,000.00 135016 AEROTEK, INC. ENGINEERING TEMP-MARTINEZ 1,750.41 135017 DIRECT TV LMWTP 138.24 135018 FEDERAL EXPRESS CORP SHIPMENT 69.34 135019 FRONTIER COMMUNICATIONS 497-1871 12/27-01/26 1,190.00 135019 FRONTIER COMMUNICATIONS 476-7489 12/25-01/24 1,354.27 135019 FRONTIER COMMUNICATIONS 484-3675 12/13-01/12 145.44 135019 FRONTIER COMMUNICATIONS 803-2949 12/25-01/24 134.87 135019 FRONTIER COMMUNICATIONS 899-0305 12/13-01/12 93.56 135019 FRONTIER COMMUNICATIONS 899-1915 12/13-01/12 194.58 135019 FRONTIER COMMUNICATIONS 944-1634 12/21-01/20 124.08 135019 FRONTIER COMMUNICATIONS 989-6476 12/16-01/15 44.97 135019 FRONTIER COMMUNICATIONS 989-9496 12/16-01/17 78.41 135020 FULLER, RICHARD MEDICARE REIMBURSEMENT 479.20 135021 GENUINE PARTS COMPANY FLEET SUPPLIES 2,209.42 135022 HOSTED BDR LLC SERVER BACKUP SOLUTION & CLOUD STORAGE 2,720.00 135023 KERRIGAN, CATHERINE MEDICARE REIMBURSEMENT 220.20 135024 KERRIGAN, PATRICK MEDICARE REIMBURSEMENT 220.20 135025 LAGERLOF, SENECAL, GOSNEY & KRUSE LEGAL SERVICES-AUDIT CONFIRMATION 90.00 135026 LINCOLN NATIONAL LIFE INS CO 12/31-DEFERRED COMP 3,250.00 135027 MALLORY SAFETY & SUPPLY LLC RISK SUPPLIES 942.16 135028 MIJAC ALARM COMPANY BURGLAR & FIRE ALARM MONITORING 1,326.00 135029 PRINTING RESOURCES OF SO. CALIF. PRODUCTION SUPPLIES 53.81 135030 PURCHASE POWER POSTAGE SUPPLIES 2,015.00 135031 REF INDUSTRIES, INC FACILITIES SUPPLIES 1,416.91

1 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 135032 SAN BERNARDINO COUNTY FLOOD CONTROL PROPOSED EASEMENT APN 0210-062-41 & 0210-062-04 70,000.00 135033 SHRED-IT USA SHREDDING SERVICE 119.50 135034 SOUTHERN CALIFORNIA EDISON ELECTRICITY 113.06 135035 TIREHUB, LLC FLEET SUPPLIES 839.29 135036 TRUNNELL, JAY MEDICARE REIMBURSEMENT 148.50 135037 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 101901-16818 74.35 135038 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 289649-71186 109.18 135039 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 301435-78424 1,955.05 135040 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 293093-75122 574.00 135041 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 290025-17184 97.88 135042 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 284101-21506 24.69 135043 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 178145-66254 107.31 135044 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 290335-100532 40.93 135045 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300089-32438 103.76 135046 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 289911-62934 48.75 135047 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 289625-38164 173.86 135048 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 275597-39294 268.85 135049 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 275597-78866 427.42 135050 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 174453-59966 67.81 135051 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 299649-20774 60.65 135052 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 172935-78354 1,827.51 135053 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 293357-96600 130.86 135054 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 143463-56270 34.10 135055 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 301041-42764 341.40 135056 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 274781-42896 23.69 135057 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 42403-32648 79.68 135058 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 297447-28234 97.72 135059 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300687-15210 20.07 135060 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300617-91324 771.63 135061 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300617-91326 1,834.06 135062 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300617-91328 152.92 135063 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300617-91330 152.92 135064 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 264301-22506 104.99 135065 VERIZON CONNECT NWF, INC FLEET VEHICLE TRACKING SYSTEM 3,218.90 135066 WAGE WORKS BENEFITS FOR DECEMBER 2020 209.38 135067 WALTERS WHOLESALE ELECTRIC CO PRODUCTION SUPPLIES 3,761.49 01/14/2021 11810 BACKFLOW APPAR & VALVE BACKFLOW SUPPLIES 178.21 11811 BERNELL HYDRAULICS, INC. LWMWTP SLUDGE 7/8 HYDRAULIC OIL 83.90 11811 BERNELL HYDRAULICS, INC. SLUDGE 7 AND 8 HYDRAULIC PARTS 357.82 11811 BERNELL HYDRAULICS, INC. SLUDGE 7 AND 8 HYDRAULIC RAM REPAIR 512.01 11812 BEST BEST & KRIEGER LEGAL SERVICES-VARIOUS DEPARTMENTS 14,840.39

2 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 11813 BEST COURIER LLC MAIL DELIVERY SERVICE 359.52 11814 BRENNTAG PACIFIC, INC AHBWTP BLEACH LOAD 1,684.65 11814 BRENNTAG PACIFIC, INC AHBWTP CHEMICAL DRUM DEPOSIT RETURN 160.00 11815 CALIFORNIA WATER TECHNOLOGIES FERRIC CHLORIDE 2020 Q4 @ $615 4,978.92 11816 CLIFTON, AMY 01/07-WAGE GARNISHMENT 310.50 11817 CLIFTON, MATT REIMB T5 & D2 RENEWAL 165.00 11818 CLINICAL LAB OF SAN BERNARDINO LABORATORY ANALYTICAL SERVICES 1,440.00 11819 CVWD 01/07-FLEXIBLE SPENDING 1,591.52 11820 GRAINGER LWMWTP WORKSHOP TOOLS 2,790.67 11820 GRAINGER TREATMENT SUPPLIES 12.05 11821 INLAND EMPIRE UTILITIES AGENCY RECYCLED WATER 40,924.80 11821 INLAND EMPIRE UTILITIES AGENCY SEWER TREATMENT EXPENSE 2,124,164.00 11822 INVOICE CLOUD, INC. CUSTOMER ONLINE PORTAL SERVICE 9,940.39 11823 IRON MOUNTAIN OFFSIDE STORAGE DATA 318.57 11824 JO ANN SIMMONS EMPLOYEE ASSISTANCE PROGRAM 910.00 11825 JOGLER LLC NTF SITE BLEACH TANK LEVEL INDICATOR 3,057.76 11826 KONECRANES INC. QUARTERLY CRANE MAINTENANCE 930.00 11827 LAWNSCAPE SYSTEMS, INC. GROUNDS MAINTENANCE - SCHEDULE 2,090.00 11828 ORIOLI, ANGELO TUITION REIMBURSEMENT 333.05 11829 PFM ASSET MANAGMENT LLC INVESTMENT ADVISORY SERVICES 3,781.64 11830 R&D PEST SERVICES, INC. PEST CONTROL 340.00 11831 RAFTELIS FINANCIAL CONSULTANTS, INC WATER RATE STUDY 4,372.50 11832 ROBERTS, JOHN REIMB-D3 CERTIFICATE RENEWAL 90.00 11833 SUPERION, LLC IT SERVICE 150.00 11834 TYLER TECHNOLOGIES, INC. MUNIS DISASTER RECOVERY ANNUAL 18,282.11 11835 WAXIE SANITARY SUPPLY FACILITIES SUPPLIES 174.11 11836 WECK LABORATORIES, INC. LABORATORY ANALYTICAL SERVICES 7,992.50 11837 WORSHAM, TERENCE SAFETY BOOTS REIMBURSEMENT 200.00 135068 ACCO ENGINEERED SYSTEMS, INC. LWMWTP CHILLER REPAIR 1,281.27 135069 AW ASSOCIATES, INC. FLEET SERVICE 90.00 135070 AWWA CAL-NEV SECTION CROSS-CONNECTION SPECIALIST RENEWAL-WORSHAM 100.00 135070 AWWA CAL-NEV SECTION WATER USE EFFICIENCY PRACTITIONER RENEWAL 200.00 135071 BURRTEC WASTE INDUSTRIES INC TRASH SERVICE 2,249.44 135072 CA SHERIFF OF SAN BERNARDINO CO 01/07-WAGE GARNISHMENT 457.73 135073 CALIFORNIA STATE DISBURSEMENT UNIT 01/07-WAGE GARNISHMENT 57.23 135074 CALPERS LONG-TERM CARE PROGRAM 01/07-LONG TERM CARE 258.74 135075 CAPIO MEMBERSHIP RENEWAL 247.50 135076 CEMEX CONSTRUCTION CLASS 2 AGGREGATE BASE 3,129.13 135077 CHARLES SCHWAB & CO., INC 01/07-401(a)CONTRIBUTION 2,465.13 135078 CITRUS MOTORS FLEET SERVICE 167.95 135079 CRAFCO INC. TEMPORARY ASPHALT COLD MIX 2,863.24

3 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 135080 CUBICLE & OFFICE, INC HR SUPPLIES 1,196.03 135080 CUBICLE & OFFICE, INC OFFICE SUPPLIES 463.33 135081 CULLIGAN WATER CONDITIONING AHBWTP WATER SOFTENER 88.00 135081 CULLIGAN WATER CONDITIONING TREATMENT SERVICE 34.00 135082 DE GRAFF, RICHARD REIMB RICH DEGRAFF 40.00 135083 FEDERAL EXPRESS CORP SHIPMENT 20.75 135083 FEDERAL EXPRESS CORP SHIPMENT 23.82 135084 FLYERS ENERGY LLC LWMWTP SLUDGE 7/8 HYDRAULIC OIL 131.44 135085 FONTANA UNION WATER COMPANY ASSESSMENT 720.00 135086 FRANCHISE TAX BOARD 01/07-WAGE GARNISHMENT 686.59 135087 FRONTIER COMMUNICATIONS 899-0060 12/28-01/27 119.56 135087 FRONTIER COMMUNICATIONS 945-1535 12/13-01/12 133.52 135087 FRONTIER COMMUNICATIONS 948-5180 12/28-01/27 177.24 135088 GENERAL ENVIRONMENTAL MANAGEMENT SERVICES, INC. INSPECTION FOR ACM AT RESERVOIR 300.00 135089 HARRINGTON INDUSTRIAL PLASTICS LWMWTP CHEMICAL FEED SUPPLIES 285.85 135090 ICMA RETIREMENT TRUST 01/07-DEFERRED COMP 5,150.00 135091 LINCOLN NATIONAL LIFE INS CO 01/07-DEFERRED COMP 5,815.00 135092 MIJAC ALARM COMPANY BURGLAR & FIRE ALARM MONITORING 2,855.00 135093 NATIONWIDE RETIREMENT SOLUTIONS 01/07-DEFERRED COMP 6,233.02 135094 NTT DATA SERVICES CLOUD DATA BACKUP AND DISASTER 1,899.80 135095 R-TECH CONSULTANTS, INC. THIRD PARTY ADMIN FEES 401(a) 1,635.00 135096 RSH CONSTRUCTION SERVICES CONSTRUCT NEW RESERVOIR 3A 247,332.50 135097 RSH CONSTRUCTION SERVICES CONSTRUCT NEW RESERVOIR 3A-RETENTION 13,017.50 135098 SAN ANTONIO WATER COMPANY STANDBY SERVICE 64.00 135099 SAN BERNARDINO COUNTY IS DEPARTMENT 800 MHZ RADIO ACCESS & MAINTENANCE 5,111.72 135100 SHINE BRITE WINDOW CLEANING FACILITIES SERVICE 140.00 135101 TPX COMMUNICATIONS CO. DISTRICT MAIN PHONE LINES 1,352.29 135102 UNIFIRST UNIFORM SERVCE 1,092.82 135103 UNIVAR SOLUTIONS USA INC. SODIUM HYDROXIDE 50% 2020 Q4 4,903.86 135103 UNIVAR SOLUTIONS USA INC. WELL HEAD TREATMENT JAN.-MARCH 6,116.32 135103 UNIVAR SOLUTIONS USA INC. WELL HEAD TREATMENT OCT.-DEC. 2,210.46 135104 US BANK CORPORATE PAYMENT SYSTEM PCARD PREPAYMENT 50,287.60 135105 US BANK EQUIPMENT FINANCE LEASE PAYMENT FOR SHARP MFP CO 1,477.05 135106 USA BLUEBOOK NTF NITRATAX MAINTENANCE PARTS 304.76 135107 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 290369-103564 9.43 135108 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 241743-84236 6.27 135109 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 132997-50956 292.15 135110 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 293163-35516 206.78 135111 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 285385-55326 252.54 135112 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 155743-6878 16.20 135113 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 25567-20146 444.58

4 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 135114 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 292865-58442 1,414.12 135115 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 292865-58444 39.25 135116 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 292865-58446 1,116.81 135117 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 159043-20816 1,798.91 135118 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 63585-48316 3,034.97 135119 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 63585-48324 10,814.48 135120 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 269807-28340 23.69 135121 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 102465-36912 167.83 135122 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 177587-94576 3,167.73 135123 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 275509-103358 119.71 135124 VERIZON INTERNET-DISTRICT TO CLOUD 1,938.40 135124 VERIZON INTERNET-LMW 2,488.53 135124 VERIZON INTERNET-NITRATE PLANT 2,013.23 135125 VERIZON WIRELESS-LA WIRELESS PHONE 8,262.19 135126 WAGE WORKS 2021 INITIAL FUNDING 2,069.00 01/21/2021 11838 BABCOCK & SONS LAB SAMPLES 180.00 11839 BRINK'S, INC. ARMORED COURIER SERVICE 497.77 11840 CAMPBELL, DEAN CWEA ASSOCIATION MEMBERSHIP 192.00 11840 CAMPBELL, DEAN REIMB-D3 CERT 90.00 11841 CAROLLO ENGINEERS, INC HYDRAULIC MODEL TRAINING AND MOLEL ANALYSIS 3,363.00 11842 CENTRAL OCCP. MED. PROVIDER-ONTARIO EE# 396 211.00 11843 CONTROL AIR CONDITIONING SERVICE CORP FACILITIES SERVICE 567.00 11844 GENERAL PUMP CS4B BOOSTER 2 REHAB 5,100.00 11844 GENERAL PUMP CS4C BOOSTER 2 REHAB 5,100.00 11844 GENERAL PUMP PRODUCTION SERVICE 3,200.27 11844 GENERAL PUMP WELL 48 PUMPING EQUIPMENT 120,680.00 11845 HILLS, ROBERT REIMB-T5 CERTIFICATE 105.00 11846 ITRON METER READER SOFTWARE MAINTENANCE 855.52 11847 KONECRANES INC. FLEET SERVICES 695.00 11848 LAWNSCAPE SYSTEMS, INC. GROUNDS MAINTENANCE 2,013.00 11849 ONLINE INFORMATION SERVICES, INC ON LINE CREDIT CHECK 989.80 11850 PACIFIC PARTS & CONTROLS, INC W16 STARTER REPLACEMENT 5,505.27 11851 SHARP BUSINESS SYSTEMS COPIERS ANNUAL MAINTENANCE 603.41 11852 VANGUARD CLEANING SYSTEMS JANITORIAL SERVICES ADMIN OPS 7,400.00 135127 AMERICOMP GROUP DISTRICT PRINTERS MAINTENANCE 2,481.37 135128 CLS LANDSCAPE MANAGEMENT, INC GROUNDS MAINTENANCE SCHEDULE B 5,974.00 135129 CWEA MEMBERSHIP RENEWAL-NEWMAN 192.00 135130 FIELDMAN, ROLAPP & ASSOCIATES BOND RATING AGENCY MEETING 1,158.50 135131 FONTANA UNION WATER COMPANY ASSESSMENT 1,034,583.96 135132 FRONTIER COMMUNICATIONS 803-5612 01/04-02/03 103.65 135132 FRONTIER COMMUNICATIONS 899-2983 01/04-02/03 108.64

5 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 135132 FRONTIER COMMUNICATIONS 899-6273 01/07-02/06 33.12 135133 MIJAC ALARM COMPANY BURGLAR & FIRE ALARM MONITORING 470.00 135134 PEREZ, MARK EMPLOYEE RELATIONS 1,000.00 135135 POMONA WHOLESALE ELECTRIC CS1C ATC 900 CONTROLLER CONVERSION KIT 6,048.18 135136 SHRED-IT USA DOCUMENT SHREDDING SERVICE 150.48 135137 SOUTHERN CALIFORNIA EDISON ELECTRICITY 529,941.00 135138 STETSON ENGINEERS IN MULTIAGENCY 2020 UWMP 23,098.00 135139 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 285997-85536 116.27 135140 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 300423-78422 21.25 135141 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 288005-59760 259.57 135142 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 205453-69576 76.70 135143 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 240641-52836 55.68 135144 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 288917-41542 30.49 135145 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 301119-91032 320.08 135146 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 301139-19224 299.13 135147 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 173931-48866 50.28 135148 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 221079-88072 145.30 135149 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 295839-62728 68.35 135150 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 265031-5520 322.01 135151 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 289707-79044 128.15 135152 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 270697-52964 37.81 135153 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 299861-91582 331.88 135154 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 299861-91584 191.58 135155 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 299861-92844 22.08 135156 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 296193-72756 155.39 135157 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 297109-53752 268.54 135158 VERIZON INTERNET-BRIDGE PLANT 1,953.96 01/28/2021 11853 ABRIL JR, ROBERT J. REIMB-TUITION 136.31 11854 ACWA JOINT POWERS INSURANCE - EMPLOYEE BENEFITS FEBRUARY COVERAGE 214,304.36 11855 ACWA JOINT POWERS INSURANCE - EMPLOYEE BENEFITS WORKERS' COMPENSATION PROGRAM 37,359.32 11856 CALIFORNIA WATER TECHNOLOGIES FERRIC CHLORIDE @ $615/DT 11,944.22 11856 CALIFORNIA WATER TECHNOLOGIES FERRIC CHLORIDE 2020 Q4 @ $615 4,910.04 11857 CDW GOVERNMENTAL, INC. COMPUTER ACCESSORIES 524.75 11857 CDW GOVERNMENTAL, INC. IT SUPPLIES 203.65 11858 CLIFTON, AMY 01/21-WAGE GARNISHMENT 310.50 11859 CVWD 01/21-FLEXIBLE SPENDING 1,591.52 11860 DAISYECO INC ENGINEERING SUPPLIES 158.93 11860 DAISYECO INC OFFICE SUPPLIES 38.15 11861 DELL MARKETING L.P LAPTOP REPLACEMENTS 8,631.79 11862 GRAINGER AHBWTP CHEMICAL CONTAINMENT 1,966.04 11862 GRAINGER LWMWTP WORKSHOP TOOLS 47.30

6 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 11862 GRAINGER NTF PPE 733.14 11862 GRAINGER OPERATOR VEHICLE TOOLS 49.39 11862 GRAINGER TREATMENT OPERATOR TRUCK TOOLS 305.02 11862 GRAINGER UNIT 349 SOCKET SET 239.95 11862 GRAINGER UNIT 349 TOOL BAG 238.99 11863 INLAND EMPIRE UTILITIES AGENCY 193.285 AF CHINO BASIN RECHARGE 106,306.75 11864 ITRON METER READER HARDWARE MAINTENANCE 1,493.84 11865 LAWNSCAPE SYSTEMS, INC. LANDSCAPE SERVICE 3,500.00 11866 MENDEZ, ELISABETH EMPLOYEE RELATIONS 20.00 11867 MET LIFE DENTAL, LIFE, & DISABILITY INSURANCE 26,407.01 11868 PLUMBERS DEPOT INC SEWER SUPPLIES 1,567.11 11869 PROGRESSIVE BUSINESS PUBLICATN MEMBERSHIP RENEWAL 518.40 11870 PSA PRINT GROUP PUBLIC AFFAIRS SUPPLIES 3,330.00 11871 R&D PEST SERVICES, INC. PEST CONTROL 445.00 11872 RYAN-HERCO CREDIT MEMO (335.47) 11872 RYAN-HERCO LWMWTP BLECH SYSTEM DEGASSING VALVES 1,809.12 11873 SMITTY'S DIESEL FLEET SERVICES 799.62 11874 STATEWIDE TOWING & RECOVERY TOWING SERVICE 412.50 11875 THOMSON RUETERS SUBSCRIPTION RENEWAL 374.43 11876 VELOCITY TRUCK-CENTERS FLEET SUPPLIES 91.57 11877 VISION SERVICE PLAN - CA FEBRUARY COVERAGE 1,784.87 11878 WESTECH ENGINEERING INC. WELL FIELD 3A NITRATE TREATMENT 33,726.78 11879 WESTRUX INTERNATIONAL INC FLEET SUPPLIES 130.50 11880 WIRELESS DEVELOPEMENT PARTNERS CONSULTING SERVICES, LEASE FEE 2,084.96 135159 ASBCSD MEMBERSHIP RENEWAL 375.00 135160 BATTERY WORX, INC. FLEET SUPPLIES 696.60 135161 BOROS, AGNES EMPLOYEE RELATIONS/COMMITMENT TO EXCELLENCE 500.00 135162 CA SHERIFF OF SAN BERNARDINO CO 01/21-WAGE GARNISHMENT 457.52 135163 CALIFORNIA STATE DISBURSEMENT UNIT 01/21-WAGE GARNISHMENT 57.23 135164 CALPERS LONG-TERM CARE PROGRAM 01/21-LONG-TERM CARE 258.74 135165 CHARLES SCHWAB & CO., INC 01/21-401(a) CONTRIBUTIONS 3,845.68 135166 CHARTER COMMUNICATION CHARTER SPECTRUM INTERNET SERVICE 2,499.00 135167 CITRUS MOTORS FLEET SERVICE 1,558.09 135167 CITRUS MOTORS FLEET SUPPLIES 183.72 135168 CLS LANDSCAPE MANAGEMENT, INC GROUNDS MAINTENANCE 211.73 135169 COMMUNITY SHOWCASE, BANNERS ADVERTISEMENT 795.00 135170 CP CONSTRUCTION CO. INC. CONSTRUCT WATERLINE IN ARCHIBALD 4,512.50 135171 CS-AMSCO LWMWTP AUMA SPARE PARTS 4,068.21 135172 DIRECT TV TREATMENT CABLE TV 139.99 135173 FEDERAL EXPRESS CORP SHIPMENT 25.77 135174 FRANCHISE TAX BOARD 01/21-WAGE GARNISHMENT 686.28

7 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 135175 FRONTIER COMMUNICATIONS 476-8312 01/04-02/03 55.17 135175 FRONTIER COMMUNICATIONS 484-3675 01/13-02/12 138.16 135175 FRONTIER COMMUNICATIONS 899-0305 01/13-02/12 85.69 135175 FRONTIER COMMUNICATIONS 945-1535 01/13-02/12 126.24 135175 FRONTIER COMMUNICATIONS 989-6476 01/16-02/15 45.56 135175 FRONTIER COMMUNICATIONS 989-9496 01/16-02/15 79.71 135176 GENUINE PARTS COMPANY FLEET SUPPLIES 2,430.85 135177 HACH CHEMICAL COMPANY CREDIT MEMO (77.98) 135177 HACH CHEMICAL COMPANY TREATMENT LAB SUPPLIES 4,414.43 135178 HARRINGTON INDUSTRIAL PLASTICS PRODUCTION SUPPLIES 481.08 135178 HARRINGTON INDUSTRIAL PLASTICS TREATMENT MAINTENANCE SUPPLIES 327.54 135179 HOFFARTH, MICHAEL REIMB-TUITION LOAN 2,493.50 135180 HOSE MAN FLEET SUPPLIES 21.83 135181 ICMA RETIREMENT TRUST 01/21-DEFERRED COMP 5,325.00 135182 LINCOLN NATIONAL LIFE INS CO 01/21-DEFERRED COMP 5,315.00 135183 MALLORY SAFETY & SUPPLY LLC SAFETY SUPPLIES 1,871.66 135184 MIDDLE RIDGE CONSULTING, INC NETWORK CONSULTING SERVICE 350.00 135184 MIDDLE RIDGE CONSULTING, INC NETWORK CONSULTING SERVICE FOR LMW 350.00 135185 NATIONWIDE RETIREMENT SOLUTIONS 01/21-DEFERRED COMP 6,246.44 135186 OCCU-MED, LTD EE EXAM 196.50 135187 TOM PONTON INDUSTRIES, INC SIEMENS 16 INCH MAG FLOWMETER 7,276.36 135188 PURCHASE POWER POSTAGE SUPPLIES 2,130.06 135189 SHINE BRITE WINDOW CLEANING FACILITIES SERVICE 500.00 135190 SOUTH COAST AQMD ANNUAL RENEWAL 421.02 135190 SOUTH COAST AQMD ANNUAL RENEWAL FEES 842.04 135190 SOUTH COAST AQMD EMISSIONS FEES 409.20 135191 SOUTHERN CALIFORNIA GAS GAS 4,400.51 135192 SWRCB - DRINKING WATER OPERATIONS CERT PROG T1 RENEWAL-FELICCIA 55.00 135193 TIREHUB, LLC FLEET SUPPLIES 404.08 135194 UNIFIRST UNIFORM SERVCE 2,188.86 135195 UNIVAR SOLUTIONS USA INC. SODIUM HYDROXIDE 50% @ $380/DT 4,357.08 135195 UNIVAR SOLUTIONS USA INC. SODIUM HYPOCHLORIDE 12.5% 5,324.32 135196 US BANK EQUIPMENT FINANCE LEASE PAYMENT FOR SHARP MFP CO 3,075.68 135197 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 247351-4404 49.30 135198 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 272991-47268 287.34 135199 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 175145-37658 285.96 135200 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 255213-7118 243.97 135201 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 299099-69740 120.57 135202 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 226961-33332 45.02 135203 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 271331-32750 47.67 135204 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 156923-32396 148.21

8 of 9 CUCAMONGA VALLEY WATER DISTRICT DISBURSEMENTS REPORT FOR THE MONTH ENDING JANUARY 31, 2021

Date Check Number Vendor Name Invoice Description Total 135205 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 267309-7106 23.21 135206 UTILITY CUSTOMER REFUND UT CUSTOMER REFUND 272077-91566 369.73 135207 VERIZON LMW LONG DISTANCE SERVICE 51.86 135208 VERIZON CONNECT NWF, INC FLEET VEHICLE TRACKING SYSTEM 3,218.90 135209 WAGE WORKS 2021 FSA RENEWAL FEE 398.00 135209 WAGE WORKS JANUARY 2021 223.82 Grand Total $ 6,061,833.80

9 of 9 FEBRUARY 2021

GOVERNMENT & PUBLIC AFFAIRS REPORT GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 1 SAVE THE DATE! Date Activity Location Description February - 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. March - April 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. March 4, 2021 DIY Raised Bed Online via Zoom This online workshop will educate Construction and 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. April 19-23 2021 CVWD Earth Week & Online, Social Media, CVWD will host a variety of activities for Open House Zoom customers during Earth Week. A Succulent Savvy Online Workshop is planned for April 22 in addition to other online opportunities for customers to learn about the District and the water efficient programs we offer. EVENT HIGHLIGHTS Date Activity Number of Comments Attendees January 28, 2021 Pruning & Maintenance 22 Attendees learned about the basics of pruning and Online Workshop maintenance for the winter season during this online workshop led by instructor Scott Kleinrock from Chino Basin Water Conservation District. The workshop offered tips for maintaining fruit trees, roses and other plants. February 2021 Virtual Field Trips 94 Field trips resumed in February with 4 classes learning about the water cycle, composting, and recycling. February 11, 2021 Rainwater Harvesting 24 Attendees learned how to make the most of the winter for Home Landscapes rain during this online workshop. Instructor Brandon Online Workshop Burgess from Chino Basin Water Conservation District led the class and demonstrated practical, low-cost approaches to capturing rain water at home. In addition, one lucky attendee won a rain barrel that was sponsored by Edison. GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 2 SOCIAL MEDIA OVERVIEW Summary from 1/1/21 - 2/1/2021 NUMBER POST POST NUMBER OF OF POSTS ENGAGEMENTS IMPRESSIONS FOLLOWERS Facebook 13 60 1,491 1, 316 Twitter 12 97 2,665 1,261 Instagram 13 135 2,797 1,085 NextDoor 10 25 10,238 41,693 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.

Facebook.com/CVWDwater Instagram: @CVWDwater Twitter: @CVWDwater

SOCIAL MEDIA: TOP PERFORMING POSTS GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 3

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: FEBRUARY 2021 PAGE 4

GOVERNMENT AFFAIRS ACTIVITY POLICY & REGULATORY • 1/25 – Joined State Water Coalition letter in support of the Voluntary Agreements, in support of the California Natural Resources Agency’s “Proposition 68: Habitat Improvement” change proposal (BCP) of $125 million in Proposition 68 funds for the Protecting California’s Rivers, Streams and Watersheds Program for Fiscal Year 2021-22. • 1/28 – Letter submitted to County Supervisor Janice Rutherford requesting that the San Bernardino County Board of Supervisors approve the use of federal COVID-19 relief package funds for residents who are unable to pay their utility bills because of the pandemic. • 2/3 – Joined coalition letter to Congressional Leadership supporting the Special Districts Provide Essential Services Act (H.R. 35 and S.91). • 2/4 – Submitted letter in support of AB 361(Rivas) • 2/8 – Joined coalition letter in support of SB 323 (Caballero) • 2/9 – Joined coalition letter in support of SB 230 (Portantino) OUTREACH • 1/14 – SAWPA Legislative Conference Call • 1/19 – COVID-19 Funding Relief: How to Prepare • 1/21 – Region 9 ACWA State Legislative Committee Review • 1/21 – SAWPA OWOW Stakeholder Meetings • 1/22 – ACWA State Legislative Committee • 1/22 – WRCA Leg-Reg Committee • 1/27 – Per and Polyfluoroalkyl Substances (PFAS) and Forever Chemicals: Update on Agency Actions • 1/28 – SAWPA Legislative Conference Call • 1/28 – CSDA Webinar: Engaging With Your Legislators • 1/28 – MWD Legislative Coordinators Call • 2/1 – SCWC Legislative Task Force Call • 2/4 – SAWPA Legislative Conference Call • 2/10 – IEUA Community & Leg Affairs Committee Meeting • 2/10 – Center for Disease Control (CDC) update on COVID-19 Vaccination for Essential Workers • 2/11 – MWD Legislative Coordinators Call GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 5

DWR Conducts Second Snow Survey The Department of Water Resources (DWR) conducted the second manual snow survey of the season at its Phillips Station. The manual survey recorded 63 inches of snow depth and a snow water equivalent (SWE) of 17 inches, which is 93 percent of average for this location. The SWE measures the amount of water contained in the snowpack and is a key component of DWR’s water supply forecast.

Statewide snow survey measurements reflect dry conditions. Measurements from DWR’s electronic snow survey stations indicate that statewide, the snowpack’s SWE is 12.5 inches, or 70 percent of the February 3 average, and 45 percent of the April 1 average. Fall 2020 was extremely dry, especially in the Sierra Nevada, and follows last year’s below-average snow and precipitation.

Californians Accumulate Up $1 Billion in Water Debt Californians have accumulated $1 billion in unpaid water bills since the beginning of the COVID-19 pandemic, and about 1.6 million California households are behind on their water bills, according to survey from the State Water Resources Control Board. A statewide water shutoff moratorium has stopped discontinuation of water service since April. The survey found that 12% of all households in California have accrued some amount of water debt. Most owe less than $200, but over 155,000 households or nearly half a million people owe more than $1,000 in unpaid bills. Nationwide, estimates suggest that water utilities could face a financial impact of $13.9 billion by the end of 2020.The board decided to study California’s water debt crisis last fall at the urging of advocates and community members who were concerned about how the state would respond to the crisis without a clear understanding of the extent of the problem.

In November, the board began a survey of over 500 water systems across the state of California. Most water systems in the state report little to no financial strain. The board wanted to understand what mounting debt means for the smallest, most vulnerable water systems in the state that often serve low income, disadvantaged communities. Last fall, some of those systems reported revenue drops as high as 50%, jeopardizing their financial health. The board found almost a fifth of the state’s most vulnerable water systems had less than 60 days of cash reserves on hand at the time of the survey and estimates that within six months, 134 water systems would run out of money absent any relief. CVWD has fared better than the state average due to the programs implemented by the Customer and Field Service Teams. As the moratorium continues, CVWD has been working with customers to alleviate their water debt.

Emergency Rental Assistance Program Funding SB 91 and AB 80 are mirror COVID-19 relief budget bills that deal with residential tenants and the federal rental assistance funds. These funds are delivered from US Treasury to counties and cities with 200,000 or greater population and the state. They have until September 30, 2021 to dedicate the funds. Additionally, this funding is tied to the eviction moratorium which was set to end on January 31.

The agreement:

• Extends the moratorium on evictions for residential rental properties through July 1, 2021. • Includes State Rental Assistance Program to allocate $2.6 billion. • Consistent with rules set forth in the federal COVID-19 relief bill, will be income based. • Will allocate funds through the Department of Housing and Community Development to cities and counties, who would provide the payments directly to landlords on behalf of eligible households. GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 6

(Continued) Emergency Rental Assistance Program Funding • Rental arrears will be the priority, but utility arrears and prospective payments for utilities are eligible to be paid as well. • Per the federal legislation, applies only to residential renters; commercial tenants and homeowners do not appear to be eligible. • Residential landlords will also be required to send notices to tenants who have not paid one or more rental payments due to COVID-19, the notice will stipulate that they may qualify for rental assistance, including for utility bills.

The rental assistance program created by SB 91 provides that the utility bills are an eligible expense for which the federal funding can be used to pay; however, it is unclear how much, if any, of the funding will go toward the payment of outstanding water bills related to the COVID-19 shutoff moratorium. While it is unclear how much of the $1.5 billion will go towards water debt, the last federal COVID-19 relief package included $638 million for low-income water and sewer customer assistance. This funding is being provided to states and tribes who are then to provide the funding to public water systems to reduce low-income household arrearages.

Staff submitted a letter to Supervisor Janice Rutherford requesting that the San Bernardino County Board of Supervisors approve the use of federal COVID-19 relief package funds for residents who are unable to pay their utility bills because of the pandemic. Municipalities like San Bernardino County who receive the renters’ relief portion of the COVID-19 relief package can use it towards rental assistance and water utilities. If approved, financially stressed residential water customers would be eligible to apply directly through the County. The letter is attached for your reference.

New Bill Introduced to Provide Special Districts COVID-19 Relief U.S. Representative John Garamendi, D-Calif., and U.S. Senator Kyrsten Sinema, D-Ariz., re-introduced special districts legislation (H.R. 535 and S. 91), the Special Districts Provide Essential Services Act, to provide special districts with direct access to future local government pandemic relief funding.

The Special Districts Provide Essential Services Act would establish a federal definition for “special district.” It would require states to direct at least five percent of future Coronavirus Relief Fund (CRF) allocations to their special districts. States would have the discretion to establish their own programs to disburse the funds to special districts demonstrating pandemic-related need for relief. States would have flexibility to use excess funds, should the U.S.Treasury permit, after 60 days, should special districts’ declared needs be met. The bills would also codify districts’ access to the Federal Reserve’s Municipal Liquidity Facility.

The CRF was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020. The $150 billion fund is eligible to state, territorial, tribal, county and city governments to reimburse certain expenditures made in response to the pandemic. Municipalities with populations greater than 500,000 received direct allocations from the U.S.Treasury, accounting for 45 percent of the total CRF. State received the remaining 55 percent, of which a portion is eligible to be granted to municipalities with populations fewer than 500,000. Language defining local governments’ eligibility for CRF in the CARES Act was exclusive of special districts. Per U.S. Treasury’s CRF guidelines, states, counties and cities can grant CRF allocations to constituent governments, which encompasses special districts. Both the U.S. House and Senate bills are the same as the 116th Congress’ S. 4308, which was a bipartisan measure introduced by Senator Sinema in coordination with Senator John Cornyn. The coalition support letter is attached for your reference. GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 7

Biden Administration Orders Regulatory Reviews and Revocations After taking office, President Biden signed an Executive Order rolling back six Trump Administration orders along with issuing two memos on regulations. The Executive Order will potentially impact water agencies through changes in federal permitting, the Endangered Species Act and the Clean Water Act. The new Administration also ordered the freezing and review of a list of regulatory actions. They include species-specific actions such as the U.S. Fish and Wildlife Service’s Biological Opinion on coordinated operations between the Central Valley Project and State Water Project, a key factor in negotiations leading to Voluntary Agreements on the Sacramento-San Joaquin Bay-Delta.

The freeze includes the Navigable Water Protection Rule, the recently released Nationwide Permit Rule, the Lead and Copper Rule Revisions, a number of Endangered Species Act provisions and the updated National Environmental Policy Act rule. Additionally, the Biden Administration issued a memo that directs the Office of Management and Budget to work with agency heads to develop a set of recommendations for improving and modernizing the regulatory review process. It asks for suggestions on how to “promote public health and safety, economic growth, social welfare, racial justice, environmental stewardship, human dignity, equity, and the interests of future generations.”

Biden Administration Announces New EPA Team Members Appointees of the new Biden Administration include at the Department of Interior (Interior) and the Environmental Protection Agency (EPA), several names were familiar to many working in the water industry. Specifically, at Interior, the placement of Tanya Trujillo as Principal Deputy Assistant Secretary for Water and Science. Trujillo is a water lawyer with more than 20 years of experience working on complex natural resources management issues and interstate and transboundary water agreements. She most recently worked on the Colorado River Sustainability Campaign and previously served as the Executive Director of the Colorado River Board of California. Trujillo also brings with her experience as Senior Counsel for the Senate Energy and Natural Resources Committee.

Joining the Interior team is Maria (Camille) Touton as Deputy Commissioner for the Bureau of Reclamation. Ms. Touton, a former Interior staffer, is returning to the Department after serving as a staff member on the House Committee on Transportation and Infrastructure. She recently staffed the resiliency provisions of the 2020 Water Resources Development Act (WRDA), although her experience in Congress spans well beyond those efforts. Additionally, during the Obama administration, Ms. Touton served as the Deputy Assistant Secretary for Water and Science at Interior. At EPA, the Biden administration placed Radhika Fox as the Principal Deputy Assistant Administrator for the Office of Water. Fox heads to EPA from the US Water Alliance, where she was the Chief Executive Officer. Additionally, she previously worked in the government affairs team at the San Francisco Public Utilities Commission. Confirmation hearings for Biden appointees will continue throughout most of 2021. GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 8

2021 LEGISLATIVE UPDATE

BILL NO. TITLE & DESCRIPTION IMPACT TO CVWD POSITIONS

ASSEMBLY

AB 339 State and local government: open This bill will amend the CVWD – Oppose Lee meetings: This bill would require all Brown Act by placing ACWA – NYC meetings to include an opportunity for all new requirements on CSDA – Oppose persons to attend via a call-in option or an public agencies for SCWC – Watch internet based service option that provides their public meeting closed captioning services and requires agendas, and meeting both a call in and an internet based service accessibility. This option to be provided to the public. legislation will be costly Requiring, even in the case of a declared and time burdensome state or local emergency, teleconferenced for our agency. meetings to include an in person public comment opportunity. This bill would require legislative bodies to translate agendas and instructions for accessing the meeting to be translated into all languages for which 5% of the population in the area governed by the local agency, or state body’s jurisdiction, are speakers

AB 361 Brown Act: Remote Meetings This bill would give CVWD – Support Rivas During Emergencies: This bill will the District more ACWA – NYC provide additional flexibility for local city flexibility to meet CSDA – Support councils, boards, commissions, and other remotely under a SCWC – NYC agencies to meet remotely via video and declared emergency teleconference during a local emergency (flood, earthquake, fire Joined Coalition that makes meeting in person unsafe, while or other unforeseen Letter in Support. still maintaining high levels of public access emergency). and transparency. This bill will not allow local agencies to meet remotely during emergencies that would not prevent the local agency board from meeting in person, nor will this legislation create any new authorization for a local agency to declare a local emergency.

* Not Yet Considered (NYC) GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 9

2021 LEGISLATIVE UPDATE

BILL NO. TITLE & DESCRIPTION IMPACT TO CVWD POSITIONS

AB 377 Water Quality: impaired waters: This This bill would increase CVWD – NYC Rivas bill would require all California surface the cost and complexity ACWA – NYC waters to be fishable, swimmable, and in treating water CSDA – NYC drinkable by January 1, 2050. Prohibiting throughout the state. It SCWC – NYC the state board and regional boards would also drastically from authorizing an NPDES discharge, broaden the types of waste discharge requirement, or waiver bodies of water that of a waste discharge requirement that need to be treated causes or contributes to an exceedance to drinking water of a water quality standard, or from standards. authorizing a best management practice permit term to authorize a discharge that causes or contributes to an exceedance of a water quality standard in receiving waters. GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 10

2021 LEGISLATIVE UPDATE

BILL NO. TITLE & DESCRIPTION IMPACT TO CVWD POSITIONS

SENATE

SB 45 Wildfire Prevention, Safe Drinking This bond could CVWD – Watch Portantino Water, Drought Preparation, and provide money to ACWA – Support Flood Protection Bond Act of 2022: the District and/or if Amended Would enact the Wildfire Prevention, Safe our region for certain CSDA – NYC Drinking Water, Drought Preparation, and water projects. SCWC – Watch Flood Protection Bond Act of 2020, which, if approved by the voters, would authorize the issuance of bonds in the amount of $5,510,000,000 pursuant to the State General Obligation Bond Law to finance projects for a wildfire prevention, safe drinking water, drought preparation, and flood protection program.

SB 222 Water Affordability Assistance As introduced this CVWD – Watch Dodd Program: Would create a Water bill does not set the ACWA – Watch Affordability Assistance Fund in the funding source or the CSDA – NYC State Treasury to help provide water amount of funding to SCWC – Watch affordability assistance, for both drinking support the fund. There water and wastewater services, to is concern the funding low-income ratepayers and ratepayers could be imposed in a experiencing economic hardship. Money water tax. in the Fund would be made available upon appropriation by the Legislature to the State Water Board.

GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PA G E 11

2021 LEGISLATIVE UPDATE

BILL NO. TITLE & DESCRIPTION IMPACT TO CVWD POSITIONS

SB 223 Discontinuation of residential water This bill would create CVWD – Watch Dodd services: Revises the conditions under new requirements for ACWA – Oppose which urban and community water water systems, most unless Amended systems and very small community water notably, adoption CSDA – NYC systems are prohibited from discontinuing of an “arrearage SCWC – Watch residential service for nonpayment . This management plan,” by bill amends the existing Health and Safety which customers with Code sections established by SB 998 that delinquent balances lays out procedures for discontinuation of would have their debt residential water service for nonpayment. forgiven. This bill proposed that agencies spend public resources to comply with a new set of rules, requiring agencies to comply with a host of new data and reporting requirements.

SB 230 State Water Resources Control The program would CVWD – Support Portantino Board: Constituents of Emerging set up a unified, ACWA – Support Concern: Would require the State Water consistent and science CSDA – NYC Resources Control Board (SWRCB) to based approach for SCWC – Watch establish, maintain, and direct an ongoing, assessing the public dedicated program called the Constituents health and drinking of Emerging Concern Program to water consequences of Joined Coalition support and conduct research to develop CECs, while identifying Letter in Support. information and, if necessary, provide which CECs warrant recommendations to the board on further action. In constituents of emerging concern (CEC) addition, it would in drinking water that may pose risks to require the state to public health. This bill would require the provide opportunities state board to provide an annual report for public participation to the Legislature on the ongoing work through periodic conducted by the panel. stakeholder meetings and workshops, that can give our agency an opportunity to respond to actionable CEC’s. GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAG E 12

2021 LEGISLATIVE UPDATE

BILL NO. TITLE & DESCRIPTION IMPACT TO CVWD POSITIONS

SB 323 Water and sewer agencies: statute This bill would give CVWD – Support Caballero of limitations: This bill is sponsored by CVWD more financial ACWA – Support ACWA and would provide public agency certainty by helping CSDA – NYC water and sewer service rates the same to prevent costly SCWC – NYC protections already afforded to fees and time consuming and charges that fund other essential litigation challenging government services. This bill would rates and charges years Joined Coalition authorize a local agency or interested after they have been Letter in Support. person to bring a validation action in a adopted and collected, superior court to determine the validity while still ensuring of a fee or charge for water and sewer that adopted rates and service. It would also require an interested charges comply with party bring a validation action within 120 Proposition 218 and days after the fee or charge becomes other existing laws effective. GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 13

2021 LEGISLATIVE UPDATE

BILL NO. TITLE & DESCRIPTION IMPACT TO CVWD POSITIONS

HOUSE

H.R. 535 Special Districts Provide Essential This bill could provide CVWD – Support Garamendi Services Act: This bill is the House funding resources for ACWA – NYC companion of S. 91 These bills ensure unforeseen COVID-19 CSDA – Support special districts are eligible for future related expenditures or SCWC – NYC financial assistance, and will provide them revenue loss. access to the Federal Reserve’s Municipal Joined Coalition Liquidity Facility. This bill would allocate Letter in Support. critically needed financial relief to special districts that have experienced unforeseen expenditures, decreases in revenue, or both, as a result of the COVID-19 health crisis.

SENATE

S. 91 Special Districts Provide Essential This bill could provide CVWD – Support Sinema, Services Act: This bill is the Senate funding resources for ACWA – NYC Coryn companion of H.R. 535.These bills ensure unforeseen COVID-19 CSDA – Support special districts are eligible for future related expenditures or SCWC – NYC financial assistance, and will provide them revenue loss. access to the Federal Reserve’s Municipal Joined Coalition Liquidity Facility. This bill would allocate Letter in Support. critically needed financial relief to special districts that have experienced unforeseen expenditures, decreases in revenue, or both, as a result of the COVID -19 health crisis. GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAGE 14

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

10440 Ashford Street, Rancho Cucamonga, CA 91730-2799 P.O. Box 638, Rancho Cucamonga, CA 91729-0638 (909) 987-2591 Fax (909) 476-8032

John Bosler Secretary/General Manager/CEO

February 4, 2021

Supervisor Janice Rutherford San Bernardino County, Second District 385 N. Arrowhead Avenue, Fifth Floor San Bernardino, CA 92415

RE: Access to San Bernardino County Emergency Rental Assistance Program

Dear Supervisor Rutherford,

The Cucamonga Valley Water District (CVWD) respectfully requests that the San Bernardino County Board of Supervisors approve the use of federal COVID-19 relief package funds for residents who are unable to pay their water bills because of the pandemic. CVWD provides water and wastewater services to approximately 200,000 residents in the City of Rancho Cucamonga and across portions of Fontana, Ontario, Upland, and unincorporated San Bernardino County. CVWD has been committed to providing safe and reliable water and wastewater services for residents to adhere to California’s stay-at-home orders even when customer payments are outstanding.

On April 2, 2020, Governor Newsom issued Executive Order N-42-40, prohibiting water agencies from disconnecting services during the pandemic for customers behind on payments. To date, CVWD has seen an increase of approximately 5,200 delinquent accounts and $712,000 in delinquent revenue. We empathize with our customers who are facing financial hardships due to this unprecedented pandemic and have worked with them to mitigate the impact they will face once the moratorium expires. This work includes: • Increased virtual opportunities to learn about water use efficiency and rebates with the intended result of increase water efficiency and reduced water bills. • Flexible payment plans up to twelve months to assist customers with past due balances • Increased promotion of CVWD’s Customer Assistance Program (CAP) that assists customers with their past due balances. • Voluntarily waiving late fee’s since the pandemic began. • CVWD Board of Director’s vote to delay a rate change.

Since the beginning of the pandemic, CVWD has been actively engaged with our local Federal delegation requesting inclusion in federal aid packages or supplemental appropriations measures to address the fiscal impact to the district. As part of that engagement, we request your support in ensuring low-income and financially stressed residential water service customers can access the federal renters’ relief funding. Municipalities who receive the renters’ relief portion of the next COVID-19 relief package can use it towards rental assistance and water utilities.

Randall James Reed Luis Cetina James V. Curatalo, Jr. Mark Gibboney Kevin Kenley President Vice President Director Director Director CUCAMONGA VALLEY WATER DISTRICT • P.O. BOX 638 • RANCHO CUCAMONGA, CA 91729-0638 • (909) 987-2591

While we understand many details about this funding are still being finalized, CVWD requests the County of San Bernardino include water utility payment assistance in the final funding allocations. Additionally, we request that you direct any community organizations that will distribute the funding on the County’s behalf also work with water providers directly. The outstanding bills are a financial burden and liability to both the customers who are obligated to pay and the water agencies that need the money to operate. If you or your staff need any further information or would like to discuss our request further, please do not hesitate to contact Eric Grubb at (909) 987-2591 or [email protected].

Thank you for your consideration of our request.

Sincerely,

John Bosler, General Manager/CEO

cc: Leonard X. Hernandez, Chief Executive Officer San Bernardino County

February 3, 2021

The Honorable Nancy Pelosi The Honorable Charles Schumer Speaker of the House Senate Majority Leader United States Capitol Building United States Capitol Building Washington, D.C. 20515 Washington, D.C. 20515

The Honorable Kevin McCarthy The Honorable Mitch McConnell House Minority Leader Senate Minority Leader United States Capitol Building United States Capitol Building Washington, D.C. 20515 Washington, D.C. 20515

RE: Support for the Special Districts Provide Essential Services Act

Dear Speaker Pelosi, Leader McCarthy, Leader Schumer, and Leader McConnell:

The National Special Districts Coalition along with 131 organizations representing more than 30,0000 special districts serving millions of Americans with critical infrastructure, emergency response, and community services support H.R. 535 and S. 91, the Special Districts Provide Essential Services Act. These bills would provide the nation’s 30,000 special districts, that were left out of direct access to previous COVID-19 federal relief, more fiscal certainty necessary to employ their essential workers and serve our communities. We ask you to support this legislation as well and advocate for its inclusion in any potential state and local government pandemic assistance package.

Millions of Americans rely on one or more special districts for essential services such as fire protection and emergency response, water, wastewater treatment, electricity, solid waste management, healthcare, transportation, resource and agricultural conservation, childcare, parks, libraries, cemeteries, air quality, and more. Special districts employ hundreds of thousands of front-line workers, both paid and volunteer. They are each governed by a public board that is typically elected by the community they serve. Like cities and counties, special districts are “subdivisions of the state;” however, they specialize in providing specific services that other governments are not providing to their community. When special districts are excluded from relief, their essential workers and their residents are excluded from relief.

The Special Districts Provide Essential Services Act would allocate critically needed financial relief to special districts that have experienced unforeseen expenditures, decreases in revenue, or both, as a result of the COVID- 19 health crisis. Nationally, the pandemic’s toll on special districts totals an estimated $30.5 billion through Fiscal Year 2021. More than half of special districts are either unlikely to maintain current staffing levels of essential workers or are uncertain that they can through the end of FY21.

While some special districts have achieved access to the Coronavirus Relief Fund through limited state and county allotment of funds, the vast majority have yet to receive aid to offset their COVID-19-related expenditures, which were unforeseen during the previous budget process. This is due in large part to the omission of special districts from the “unit of local government” definition within the CARES Act and the lack of explicit Treasury guidance on special districts’ eligibility for funding. As a result, some of our nation’s most vulnerable and disadvantaged communities served by special districts have received little to no federal support for the ongoing provision of their essential local services.

These bills are identical to the bipartisan S. 4308 from the 116th Congress. Specifically, H.R. 535 and S. 91 would do the following:

• Allow special districts direct access to the Coronavirus Relief Fund. The bill requires states to distribute five percent of future Coronavirus Relief Fund allocations that they receive to special districts within their respective state within 60 days of receiving funds from the U.S. Treasury. Designating special districts as eligible for the Fund would greatly assist in their attempts to both recoup dramatic revenue losses and backfill the increase in expenditures many have experienced due to a variety of pandemic- related expenses. Neither H.R. 535 and S. 91 call for additional appropriations.

• Require special districts to demonstrate the financial impact of COVID-19 when applying for funding. Special districts would submit information to their state demonstrating the degree to which they have experienced or anticipate they will experience COVID-19-related revenue loss, grant/inter-governmental revenue loss, or increased COVID-19-related expenditures.

• Create limits to allocations such that a special district may not receive funding that exceeds the amount the district expended in any quarter of 2019. However, special districts providing services that the federal Cybersecurity and Infrastructure Security Agency deems to be within a “critical infrastructure sector” would be exempt from limitations.

• Provide flexibility for states with excess funds reserved for special districts that make a good faith effort to distribute funds to districts within the state. The bill requires states to file a waiver with U.S. Treasury after 60 days demonstrating how the state distributed its special districts funding. If approved, the state may use the balance of the funds for other COVID-19 response purposes.

• Define “special district” as a “political subdivision of a State, formed pursuant to general law or special act of the State, for the purpose of performing one or more governmental or proprietary functions.” With the variety of services that special districts throughout the country deliver, it is important to have a clear understanding of what is – and what is not – a special district. The definition in the bill was developed through a collaborative and consensus-driven process by special district associations across the nation.

• Specifically permit special districts to be considered “eligible issuers” of the Federal Reserve Board’s Municipal Liquidity Facility (MLF). The bill would direct the U.S. Department of Treasury to consider special districts as eligible issuers to take advantage of the Municipal Liquidity Facility, as established in the CARES Act, for access to capital during the current financial downturn. States, territories, tribes, cities with a population greater 250,000 and counties with a population greater than 500,000 have access to the Fed’s tool. Despite special districts’ statutory authority to issue tax and revenue anticipation notes, they are currently not considered “eligible issuers” under the CARES Act. This bill expands the Fed’s authorization to purchase these notes to include all special districts as “eligible issuers” for MLF.

The Special Districts Provide Essential Services Act is vital for the continued operations of services for millions of Americans. We look forward to working with you on this critical legislation and in supporting its inclusion in the upcoming COVID-19 relief bill. Thank you for your consideration.

Sincerely,

National Special Districts Coalition

California Special Districts Association Special Districts Association of Colorado Florida Association of Special Districts Special Districts Association of Oregon Utah Association of Special Districts

National and State Special Districts Stakeholder Associations

Agribusiness and Water Council of Arizona American Library Association Arizona County Treasurer’s Association Arizona Fire Chiefs Association Arizona Fire Districts Association Association of California Healthcare Districts Association of California Water Agencies Association of Fire Districts of the State of New York Association of Metropolitan Water Agencies Association of Washington Public Hospital Districts California Association of Recreation and Park Districts California Association of Resource Conservation Districts California Fire Chiefs Association California Municipal Utilities Association California Rural Water Association Colorado Parks & Recreation Association Colorado State Fire Chiefs Colorado Water Congress Family Farm Alliance Fire Districts Association of California Florida Rural Water Association Illinois Association of Fire Protection Districts Illinois Association of Park Districts Illinois Library Association Illinois Rural Water Association International Association of Fire Chiefs Irrigation & Electrical Districts Association Kansas State Association of Fire Chiefs Louisiana Fire Chiefs Association Maine Rural Water Association Michigan Association of Fire Chiefs Missouri Association of Career Fire Protection Districts Missouri Association of Fire Chiefs Montana Fire Chiefs Association Montana Fire Trustees Association Mosquito and Vector Control Association of California Mountain Counties Water Resources Association (California) National Association of Emergency and Fire Officials National Recreation and Park Association National Rural Water Association National Volunteer Fire Council National Water Resources Association New Jersey State Association of Fire Districts Northern California Water Association Ohio Parks and Recreation Association Oregon Fire Chiefs Association Oregon Fire District Directors’ Association Oregon Library Association Oregon People’s Utility Districts Association Oregon Public Ports Association Oregon Recreation & Parks Association Oregon Water Resources Congress Pennsylvania Municipal Authorities Association Rural Water Association of Utah South Carolina Association of Special Purpose Districts Tennessee Association of Utility Districts Texas Fire Chiefs Association Texas Rural Water Association Texas State Association of Fire and Emergency Districts Washington Association of Sewer & Water Districts Washington Fire Chiefs Washington Fire Commissioners Association Washington Public Utility Districts Association Western Fire Chiefs Association Wyoming Association of Special Districts

Individual Special Districts

Alameda County Mosquito Abatement District (California) Antelope Valley Cemetery District (California) Atascocita Fire Department (Texas) Baker County Library District (Oregon) Biola Community Services District (California) Brooktrails Township Community Services District (California) Carmichael Recreation and Park District (California) Coachella Valley Water District (California) Coalinga-Huron Recreation and Park District (California) Coastside County Water District (California) Conejo Recreation and Park District (California) Contra Costa Mosquito and Vector Control District (California) Costa Mesa Sanitary District (California) Cosumnes Community Services District (California) Crooked River Ranch Rural Fire Protection District (Oregon) Cucamonga Valley Water District (California) Curry County Soil and Water Conservation District (Oregon) Delta Diablo (California) Eastern Sierra Community Service District (California) Eden Health District (California) Emergency Services District No. 3 (Texas) Fort Bend Emergency Services District #1 (Texas) Frazier Park Public Utility District (California) Fresno Metropolitan Flood Control District (California) Fulton-El Camino Recreation and Park District (California) Gaston Rural Fire District (Oregon) Goleta Sanitary District (California) Great Parks of Hamilton County (Ohio) Greater St. Helens Aquatic District (Oregon) Grizzly Flats Community Services District (California) Home Garden Community Services District (California) Indian Wells Valley Water District (California) Jefferson County Soil & Water Conservation District (Oregon) Kettleman City Community Services District (California) Los Osos Community Services District (California) Lower Umpqua Library District (Oregon) Mark Twain Health Care District (California) Mesa Water District (California) Midpeninsula Regional Open Space District (California) North County Fire Protection District (California) North Highlands Recreation and Park District (California) Olympic Valley Public Service District (California) Orangevale Recreation & Park District (California) Placer County Air Pollution Control District (California) Pleasant Hill Recreation and Park District (California) Port of Hueneme – Oxnard Harbor District (California) Port of Toledo (Oregon) Sacramento-Yolo Mosquito and Vector Control District (California) San Joan Water District (California) Santa Clara Fire District (Oregon) Santa Ynez River Water Conservation District (California) Silverton Rural Fire Protection District No. 2 (Oregon) South Coast Air Quality Management District (California) Southern Cascades Community Services District (California) Stallion Springs Community Services District (California) Tualatin Hills Park & Recreation District (Oregon) Turlock Irrigation District (California) Willamalane Park and Recreation District (Oregon)

Non-Profit and Private Sector

Self-Help Enterprises Streamline TOGETHER Bay Area

cc: Representative John Garamendi Senator Kyrsten Sinema

Representative Maxine Waters, Chair, House Committee on Financial Services Representative Patrick McHenry, Ranking Member, House Committee on Financial Services Representative Carolyn Maloney, Chair, House Committee on Oversight & Reform Representative James Comer, Ranking Member, House Committee on Oversight & Reform Senator Ron Wyden, Chair, Senate Committee on Finance Senator Mike Crapo, Ranking Member, Senate Committee on Finance GOVERNMENT & PUBLIC AFFAIRS REPORT: FEBRUARY 2021 PAG E 15

THE FOLLOWING PAGES ARE THE LEGISLATIVE REPORT FROM IEUA’S MOST RECENT BOARD MEETING FOR YOUR INFORMATION January 29, 2021

To: Inland Empire Utilties Agency

From: Michael Boccadoro Beth Olhasso

RE: January Report

Overview:

Dismal precipitation during the late fall and early winter has left water managers concerned about water supplies for 2021. Spirits are rising however after significant precipitation late in the week of January 25. Six to eight feet of snow fell in the sierras in the span of three days, increasing the sierra snowpack by 20 percent!! While the storms gave the snowpack a much needed boost, snowpack and reservoir storage levels are still below normal for this time of the year.

Californians have accumulated $1 billion in unpaid water bills since the beginning of the COVID-19 pandemic, and about 1.6 million California households are behind on their water bills, according to a new survey from the State Water Resources Control Board.

For the third year in a row, the Department of Fish and Wildlife found zero Delta Smelt in its Fall Midwater Trawl Survey throughout the Delta. Not only did the survey find zero Delta Smelt, once the most abundant species in the estuary, it also found zero Sacramento Splittail, a native minnow that was removed from the Endangered Species list by the Bush Administration.

On January 8, Governor Newsom released his proposed 2021-2022 state budget. With revenues much stronger than earlier predicted, the $227 billion proposed budget is the largest ever proposed for the state. While there was no Climate Resilience Bond introduced, as there was last year, there is significant investment in wildlife and habitat restoration in the Delta which is a critical component of the Voluntary Agreements.

The Legislature is back in Sacramento introducing bills ahead of the February 19 deadline. Introductions have been slow in the first few weeks of January, but are expected to pick up as the bill introduction deadline nears. With significant limitations for committees to hold hearings because of COVID precautions, it is likely members will have to again prioritize their most important bills. With leadership and the Governor trying to focus members on a few key issues; homelessness and affordable housing, wildfire and climate, and economic recovery and pandemic response, it remains to be seen which water bills will ultimately be introduced and rise to the top.

Inland Empire Utilities Agency Status Report – January 2021

Water Supply Conditions Dismal precipitation during the late fall and early winter has left water managers concerned about water supplies for 2021. With San Luis Reservoir, the main south-of-Delta storage facility for the State Water Project, at 65 percent of average for this time of the year and 50 percent capacity and Oroville at 54 percent of average and 34 percent capacity, there is cause to worry. Further worry has been associated with the snowpack numbers. On Tuesday, January 26 the statewide snowpack was at 23 percent of April 1 average and 41 percent of normal. By Friday the 29th, the statewide snowpack was at 39 percent of April 1 average and 66 percent of normal. While 66 percent of normal isn’t a very promising number, the massive storm that left eight feet of snow was very helpful at helping the snowpack inch towards normal.

SWRCB Estimates $1 Billion in Unpaid Water Bills Since March Californians have accumulated $1 billion in unpaid water bills since the beginning of the COVID-19 pandemic, and about 1.6 million California households are behind on their water bills, according to a new survey from the State Water Resources Control Board.

In April, the Governor issued a statewide water shutoff moratorium.

The survey found that 12 percent of all households in the state have accrued some amount of water debt. Most owe less than $200, but over 155,000 households owe more than $1,000.

Until this report, California had no idea how bad its water debt crisis was, while other states have been keeping track of water debt for months. Nationwide, estimates suggest that water utilities could face a financial impact of $13.9 billion by the end of 2020.

The SWRCB decided to study California’s water debt crisis last fall at the urging of advocates and community members who were concerned about how the state would respond to the crisis without a clear understanding of the extent of the problem. In November, the board began a survey of over 500 water systems across the state of California.

Congress included $638 million for water debt relief nationwide in the December stimulus bill. California can expect to receive between $60 and $70 million of that, which is nowhere near enough to provide relief to households and water systems alike.

Senator Bill Dodd (D-Napa) introduced two bills to address the crisis. SB 222 establishes a water assistance fund for low-income rate payers experiencing economic hardship. SB 223 expands protections and protocols for customers who are faced with having their water shutoff because of an inability to pay their bills. Both measures are being evaluated by the water community and stakeholders will begin to raise issues with the author soon.

Zero Delta Smelt Found in “Fall Midwater Trawl” Survey For the third year in a row, the Department of Fish and Wildlife found zero Delta Smelt in its Fall Midwater Trawl Survey throughout the Delta. Not only did the survey find zero Delta Smelt, once the most abundant species in the estuary, it also found zero Sacramento Splittail, a native minnow that was removed from the Endangered Species list by the Bush Administration.

The fish are surveyed every year with trawl gear in an array of locations in the Delta. The survey uses an “index,” a relative measure of abundance, to assess the populations. The 2 to 3 inch long Delta Smelt, found only in the Sacramento-San Joaquin Delta, is utilized as an indicator species that reveals the overall health of the San Francisco Bay-Delta Estuary.

While the Fall Midwater Trawl (FMWT) survey did not catch any Delta Smelt, it does not mean there were no smelt present, but the numbers are very low and believed to be below the effective detection threshold by most sampling methods.

This is not the only survey that found low numbers of Delta Smelt in 2020. The Enhanced Delta Smelt Monitoring (EDSM) survey of the U.S. Fish and Wildlife Service (USFWS) found just two Delta Smelt during 14 sample weeks conducted between September 8- December 11, 2020.

In addition, the Fish Culture and Conservation Laboratory run by UC Davis, which aims to capture wild broodstock every year to maintain their hatchery-reared Delta Smelt population as a hedge against extinction in the wild, couldn’t find any fish for broodstock this fall. They caught zero Delta Smelt in the 151 tows since November 17.

Governor Proposes 2021-2022 State Budget On January 8, Governor Newsom released his proposed 2021-2022 state budget. With revenues much stronger than earlier predicted, the $227 billion proposed budget is the largest ever proposed for the state.

As expected, the proposed budget is heavily focused on economic recovery, COVID vaccinations, wildfire preparedness, and getting schools reopened. There is a set of “early action” measures proposed as part of his economic recovery package, including $1.5 billion for electric vehicle charging infrastructure.

Notably, the budget includes $125 million in Prop 68 funds to fund projects which aim to protect and restore natural or aquatic wildlife, species or wetlands in the Delta. This funding is critical to the success of the Voluntary Agreements that are still being negotiated.

Budget Subcommittees will discuss the individual provisions of the budget proposal ahead of the June 15 statutory deadline to pass the budget.

Legislative Update The Legislature is back in Sacramento working on 2021 legislative packages. The session remains constrained by COVID-19 precautions with very limited staff and public allowed in the Capitol and members urged to keep bill packages small again this year. Members have been encouraged to focus on legislation to address homeless and housing, wildfire and climate, and economic recovery and pandemic response.

Few bills have been introduced to date, however the bulk is expected right ahead of the February 19 bill introduction deadline. In addition to the two bills by Senator Dodd mentioned above and SB 45 (Portantino), the reintroduction of the Climate Resilience Bond from last year (as discussed in last month’s report), there are only a couple of water bills that have been introduced thus far.

SB 230 (Portantino): MWD and California Municipal Utilities Agency reintroduction from last year regarding constituents of emerging concern (CEC). The bill would establish a science advisory panel to make recommendations on CECs to the SWRCB. The proponents of the measure want to create a more predictable process for establishing which chemicals are considered for MCLs, NLs, RLs, etc. The bill is nearly identical to the version IEUA supported last year. The bill was tabled because of the abbreviated legislation, not for any policy or pollical reasons.

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: January 29, 2021

Re: January Monthly Legislative Update

Biden Inaugurated, Agenda Faces Senate Hurdles On Wednesday, January 20, Joseph R. Biden, Jr. was inaugurated as the 46th President of the United States on the West Front of the United States Capitol. Biden, 78, is the oldest person ever inaugurated to serve as President. Vice President Kamala Harris made history as the first woman, first African American, and first person of Indian descent to serve in the second highest elected office in the United States.

President Biden will face big headaches on getting his priorities off the ground on Capitol Hill. Democrats are vowing to use their first unified government in more than a decade to enact a “bold" agenda.

But they are facing significant hurdles to getting anything done fast. There’s a looming second impeachment trial for former President Trump and, in the meantime, a chaotic Senate that is stuck in limbo since a power sharing agreement between Republicans and Democrats has not yet been finalized to govern the chamber that is evenly divided on a daily basis.

“Things are on hold. I’ve got a lot of things I want to do,” Senate Majority Whip Dick Durbin (D-IL) said of the impact of not having a power-sharing deal on President Biden’s agenda.

President Biden’s problems are twofold: His Cabinet nominees appear poised to move at a sluggish pace and two of his legislative priorities — coronavirus relief and immigration reform — are already being panned by top Republicans.

In a potential sign of the hurdles to come, Senate Minority Leader Mitch McConnell (R-KY) sent a warning shot during one of his first-floor speeches back in the minority. Republicans, he warned, were willing to work with Biden but also wouldn’t be shy about blocking bills they do not support. Because of the 60-vote legislative filibuster, Democrats will need at least 10 GOP senators to pass most things unless they invoke the “nuclear option” to nix the legislative filibuster. At least two Democratic Senators—Joe Manchin (D-WV) and Krysten Sinema (D- AZ)—have indicated they would not be willing to vote to get rid of the filibuster.

Once an impeachment trial starts, it’s expected to sideline much of the Senate’s regular legislative work.

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Democrats and President Biden have floated the idea that the Senate could vote on nominations and legislation in the morning and then conduct Trump’s historic second trial in the afternoon.

In accordance with an agreement reached between Majority Leader Chuck Schumer (D-NY) and Republican Leader McConnell, the main parts of the trial are not expected to begin until the week of February 8, though Senate received the single Article of Impeachment on Monday, January 25 and Senators took the trial oath the following day.

By the end of Inauguration Day, the Senate had only confirmed one member of Biden’s cabinet – Avril Haines to be President Biden's director of national intelligence (DNI). By comparison, President Trump had two nominees confirmed on his first day in office—for Defense Secretary and Homeland Security Secretary.

Moving nominations has been complicated by the fact that Leaders Schumer and McConnell haven’t yet reached an agreement on how to share power in the 50-50 Senate. It’s set up an unusual dynamic in which Democrats have the majority, but Republicans still control many of the Senate committees.

Another complication emerged when McConnell asked that the organizing deal include language protecting the 60-vote legislative filibuster, which progressives and a growing number of Democratic senators support nixing.

Supporters warn that the filibuster stands in the way of passing many of Biden and Democrats priorities and that McConnell is making a request that he would never agree to if Republicans were still in the majority.

President Joe Biden Signs Flurry of Executive Actions in First Hours of Presidency President Joe Biden was sworn in as the 46th president of the United States on January 20. In his inaugural address, Biden made an appeal for unity and sought to turn the page on the divisions of the Trump era.

“To overcome these challenges, to restore the soul and secure the future of America requires so much more than words. It requires the most elusive of all things in a democracy: unity,” President Biden said.

President Biden spoke with optimism about the country’s future. But the difficulties the new president will face were on full display at his swearing in.

Former President Trump, who refused to concede that he lost fairly, did not attend the inauguration. The Capitol complex was surrounded by fencing erected after pro-Trump rioters on January 6 sought to halt the certification of results by Congress affirming Biden as president. And attendance was scaled back for the inaugural festivities as the Biden team urged Americans to avoid traveling to Washington, amid the coronavirus pandemic.

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President Biden signed his first executive actions just hours after being sworn in as the 46th commander in chief.

Biden, wearing a mask while seated at the Resolute Desk in the Oval Office, signed executive actions mandating mask use in federal building, federal lands, and by government contractors to prevent the spread of the novel coronavirus, rejoining the Paris climate agreement and extending support for underserved communities.

"I thought there's no time to wait. Get to work immediately," President Biden told reporters. "There's no time to start like today."

The executive actions were among 15 items that Biden signed on his first day in office.

The actions represent an effort by Biden to turn a page on the administration of his predecessor, former President Trump, by reversing some of his more controversial policy moves, including the exit from the Paris climate accord. For several months, the U.S. was the only country in the world that wasn't a party to the accord.

“A cry of survival comes from the planet itself, a cry that can’t be any more desperate or any more clear,” Biden said in his inaugural address, listing “a climate in crisis” as one of the many challenges facing the U.S. Special envoy John Kerry will be leading much of the administration's climate efforts, and has said reestablishing American leadership on climate change will be one of his top priorities.

Some Republican lawmakers, however, blasted the decision and plan to introduce a resolution seeking Senate review.

“The Paris Agreement is a poorly negotiated, fatally flawed treaty that represents a bad deal for American families everywhere,” Senator Steve Daines (R-MT) said in a statement joined by five other lawmakers.

Biden also signed an order reversing Trump’s effort to withdraw from the World Health Organization, and sought to deliver relief to those impacted by the coronavirus pandemic by extending a pause on student loan payments and moratoriums on evictions and foreclosures.

Administration, Lawmakers Expected to Move Quickly on COVID Relief Speaker Nancy Pelosi (D-CA) said on Thursday, January 21 that House Democrats will move immediately on a massive coronavirus relief package, setting the stage for an early showdown in the newly flipped Senate over the chief legislative priority of the nascent Biden administration.

Speaker Pelosi’s remarks came one week after President Biden unveiled a $1.9 trillion emergency relief package, which features many of the wish-list items contained in earlier proposals from Pelosi and House Democrats.

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House Democrats have rearranged their schedule over the next two weeks, scrapping votes during the week of January 25 to allow the relevant committees to organize for the 117th Congress and begin considering the various provisions of their emerging COVID-19 relief package. Speaker Pelosi suggested that package could hit the House floor as early as the week of February 1.

In his inaugural address, Biden called on lawmakers of both parties to come together behind another round of emergency aid, warning of a dark winter without it.

"We’re entering what may be the toughest and deadliest period of the virus," he said. "We must set aside politics and finally face this pandemic as one nation."

But another enormous coronavirus bill faces a tough road in the Senate, where Republicans are already signaling their opposition to President Biden's proposal.

"I suspect the whole package is a non-starter," Sen. Roy Blunt (R-MO) said. He quickly added that there are elements of the proposal that Republicans can support, encouraging Democrats to come to the table on a smaller compromise.

Additionally, on Friday, January 22, President Biden signed several executive orders related to the coronavirus pandemic. As part of the orders, President Biden directed his administration to boost food assistance for needy Americans and leverage federal contracts to improve pay for low-wage workers.

Brian Deese, director of Biden’s National Economic Council, said that “these actions are not a substitute for comprehensive legislative relief, but they will provide a critical lifeline to millions of families.” As part of his unilateral push in the interim, the president is asking:

• The Labor Department to issue guidance clarifying that workers can refuse employment that jeopardizes their health and still receive unemployment benefits; • The Agriculture Department to issue new guidance that would allow as many as 12 million additional Americans to have access to food-stamp benefits that were enhanced during the pandemic; • The Treasury Department to create new online tools to help Americans who have not yet received the coronavirus stimulus checks to which they’re entitled; and • The Veterans Affairs Department to halt collections on overpayments and debts, in a move the administration says could help as many as 2 million veterans.

White House officials described the efforts as a down payment on broader economic efforts they’re pursuing as part of the $1.9 trillion stimulus package. Deese spoke to a group of lawmakers Sunday, January 24 to discuss the proposal.

If lawmakers don’t make headway in a bipartisan fashion, the House and Senate Democrats have indicated they will look to the budget reconciliation process, which allows for a simple majority vote in the Senate on certain legislation, to pass at least portions of President Biden’s coronavirus relief package.

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Portions of the proposal would likely be ineligible for passage in the Senate under reconciliation instructions, as the Senate’s “Byrd rule” requires that legislation passed through the process have a budgetary impact. For example, House Budget Committee Chairman John Yarmuth (D-KY) said that there are plans to include instructions that they hope would allow the House and Senate to raise the minimum wage to $15 per hour. “We’re going to put that in the instructions and see what the [Senate] parliamentarian says,” Yarmuth said in an interview. He did indicate he thought it would be “a stretch” to think the parliamentarian would allow the minimum wage provisions to survive the reconciliation process.

President Biden acknowledged on Monday, January 25 that it could take “a couple of weeks” to reach an agreement and said Democratic leaders would ultimately decide whether to use reconciliation depending on how negotiations go.

Additionally, on Thursday, January 28, the White House signaled that the administration did not support breaking down the $1.9 trillion package into individual portions of the larger proposal.

"The needs of the American people are urgent from putting food on the table, to getting vaccines out the door to reopening schools. Those aren’t partisan issues," White House Press Secretary Jen Psaki stated. "We are engaging with a range of voices—that’s democracy in action—we aren’t looking to split a package in two."

Republican senators have indicated they do not support such a large package at this time, pointing to the relief bill Congress passed in late December. The skepticism of Sens. Mitt Romney (R-UT) and Susan Collins (R-ME), two more moderate Republicans who are potential partners for the administration, has led to questions about whether the bill will get any GOP support.

For final passage of a coronavirus relief package, Senate Majority Leader Chuck Schumer (D- NY) indicated he hoped to secure passage of the next round of relief by mid-March ahead of the expiration of federal benefits that were extended in the Consolidated Appropriations Act, 2021 that was enacted in December of 2020.

Biden Administration, Lawmakers Express Disagreement on Oil and Gas Drilling On Wednesday, January 27, the President Biden signed an executive order to pause new oil and gas leases on public lands. The order directs the Interior Department to limit new leases “to the extent possible,” while excluding oil activity on Native American lands that can be a serious revenue generator for tribes. The order also directs agencies to end federal subsidies for fossil fuels “as consistent with applicable law.”

The actions follow an order signed by acting Secretary Scott de la Vega on January 20 hours after President Biden was inaugurated bars the department from pushing ahead with any new leasing or drilling permits, freezing such leases for the next 60 days. It also blocks any new major mining actions.

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President Biden’s climate plan calls for “banning new oil and gas permitting on public lands and waters,” a pledge made by each Democratic candidate in the primary after the idea was first proposed by Senator Elizabeth Warren (D-MA).

The 60-day timeline pauses several other actions at Interior, including any promotions for department staff or transfer of public lands back to the states.

President Biden has nominated Representative Deb Haaland (D-NM) to lead the Interior Department, and her signature would be required to establish a permanent moratorium on new oil drilling on public lands.

However, several Republican members of the House and Senate disagree with the Administration over the actions.

Senator Cynthia Lummis (R-WY) is set to introduce a bill that would restrict the White House from unilaterally blocking new leasing for oil and gas drilling on federal lands without congressional approval.

Representative Yvette Herrell (R-NM) is set to be the lead sponsor of the House version of the bill, which has little chance of passing the Democratic-controlled chamber.

“For the president to attempt to use his authority as president to override provisions that are in federal law is inappropriate and certainly will be catastrophic,” Senator Lummis said.

Additionally, several members of the Congressional Western Caucus released statements on Wednesday in opposition to President Biden’s actions.

Western Caucus Chairman Dan Newhouse (R-WA) stated “This decision is a direct attack on the hardworking men and women who rely on these good-paying jobs, local economies, and rural communities that rely on the revenue from these leases. Worse, it puts American energy security in jeopardy.”

Many congressional Democrats welcome President Biden’s actions to stop oil and gas drilling on public lands, and plan to take advantage of the majority the party holds in the House and Senate to see that the moratorium is accomplished.

Representative Jimmy Panetta (D-CA) has reintroduced the California Central Coast Conservation Act, which establishes a moratorium on all new oil and gas leasing on federal public land on the central coast of California.

Representative Panetta originally introduced this legislation in December 2019 in direct response to the Trump Administration’s decision to allow for new oil and gas leasing and development on over 720,000 acres of public land in Central California.

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The bill prohibits the Bureau of Land Management (BLM) from implementing the decision until it completes and publishes a supplemental environmental impact statement assessing the impacts of oil and gas drilling on the Central Coast.

Several California members are original cosponsors of Representative Panetta’s legislation including Representatives Alan Lowenthal, Grace Napolitano, Salud Carbajal, Mark Takano, Ro Khanna, Mark DeSaulnier, Anna Eshoo, Jared Huffman, and Barbara Lee.

"We are talking about millions of acres of public lands, not a disposable commodity for sale to the highest bidder in the oil and gas industry," Representative Lowenthal commented on the legislation.

Biden EPA Asks DOJ to Hit Pause on Defense of Trump-Era Rules The Environmental Protection Agency (EPA) is asking the government to pump the brakes in its defense of Trump-era environmental rollbacks in court.

In a letter to the Department of Justice (DOJ), EPA’s acting general counsel Melissa Hoffer asks government lawyers to hit pause on cases where the previous administration has been challenged by environmental groups.

The move is a way for the Biden administration to disavow the Trump rollbacks, buying time as they signal that they plan to issue their own regulations.

The Trump administration scaled back more than 170 environmental regulations while in office, easing regulations on vehicle emissions and methane leaks from the oil and gas industry, and limiting how the EPA weighs public health data.

In an executive order issued on his first day in office, Biden signaled that he intends to review at least 58 rollbacks that were promulgated under Trump.

Hoffer’s request references two recent orders from Biden, one ordering a review of existing environmental regulations, and another that freezes all Trump-era rules that have not yet taken effect. The reversal of stance in court comes as Biden’s Department of Justice takes over a dizzying number of suits, with many rules facing multiple suits from both attorneys general and various environmental groups.

Biden’s Cabinet Gradually Confirmed by Senate A week after being sworn in, President Biden is slowly seeing his Cabinet start to come together.

The slow trickle of nomination approvals in the Senate comes as President Biden only had one member of his cabinet vetted and confirmed by senators on Inauguration Day: Avril Haines, President Biden’s pick for Director of National Intelligence.

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It's a historically small number of Cabinet picks to get through the Senate on the first day of a new administration and comes after Republicans were furious in 2017 when Democrats allowed only two Cabinet picks to be confirmed on former President Trump's first day.

By comparison, former President Barack Obama got six Cabinet picks confirmed on his first day, former President George W. Bush got seven on his first day and former President Clinton got three. Former President Carter got eight, while former President Nixon got 11.

In the days since the inauguration, the Senate has confirmed three additional nominees, with plans to confirm at least two more during the first week of February.

In addition to Haines, the Senate has confirmed: • Lloyd Austin as Secretary of Defense in a 93-2 vote on Tuesday, January 22. • Janet Yellen, former Chairwoman of the Federal Reserve, as Secretary of the Treasury in an 84-15 vote on Friday, January 25. • Antony Blinken, one of Biden’s longtime advisers, as Secretary of State in a 78-22 vote on Tuesday, January 28.

Confirmation votes for Alejandro Mayorkas to be Secretary of Homeland Security and Pete Buttigieg to be Secretary of Transportation have been scheduled for the week of February 1st.

But Biden is still missing permanent officials to helm the key departments of Justice and Health and Human Services (HHS), as well as the CIA — let alone deputy positions across government that also need Senate-confirmed officials.

Energy Secretary nominee Jennifer Granholm, Housing and Urban Development nominee Marcia Fudge, U.S. Ambassador to the United Nations nominee Linda Thomas-Greenfield, and Commerce Secretary nominee Gina Raimondo have sat for hearings over the past two weeks.

A large theme of the nomination hearings has been President Biden’s focus on policy to address climate change.

Granholm, the former governor of Michigan, will be tasked with helping implement the president’s goal of expanding clean energy as part of an effort to reach net-zero emissions by 2050.

Both Biden and Granholm have stressed that they want to create jobs as part of the transition. During her nomination hearing on Wednesday, January 27, Granholm expressed before the Senate Energy and Natural Resources Committee that the goal is to create 10 million jobs.

Republicans, particularly those from fossil fuel-producing states, expressed skepticism during the hearing about replacing oil and gas jobs.

During the nomination hearing for President Biden’s pick to lead the Transportation Department, former South Bend, Indiana, Mayor Pete Buttigieg on Thursday, January 21, many of the questions from senators stemmed from the Administration’s climate vision.

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Buttigieg fielded questions from Republicans on issues like increasing the gas tax and Biden’s executive order from Wednesday revoking a permit for the Keystone XL pipeline.

“More good paying union jobs will be created in the context of the climate and infrastructure work we have before us,” Buttigieg said in response to questions from Republicans about job loss due to the cancellation of the Keystone pipeline. “We cannot afford to not invest in climate.”

Additionally, newly confirmed Defense Secretary Lloyd Austin has expressed the importance of consideration of climate change in defense policy.

“There is little about what the [Defense] Department does to defend the American people that is not affected by climate change. It is a national security issue, and we must treat it as such,” Secretary Austin commented.

Congress Affirms Biden Win Following Riot at Capitol Congress, early in the morning on Thursday, January 7, formally affirmed President-elect Joe Biden’s election victory after rioters supporting President Trump overwhelmed Capitol Police and broke into the Capitol on Wednesday afternoon.

The extraordinary attack on the symbolic epicenter of the U.S.'s democracy left five people dead including a Capitol police officer, and lawmakers in both parties shell-shocked by the unprecedented threat to their safety in a building previously thought to be virtually impenetrable.

Shortly before 4 a.m., after lawmakers formally tabulated each state's Electoral College votes, Vice President Pence announced before a joint session of Congress that Joe Biden and Vice President-elect Kamala Harris had won 306 votes over Trump's 232.

The images of chanting Trump supporters smashing windows, brawling with Capitol Police and marching unimpeded through the Rotunda quickly ricocheted around the globe, stunning Washington, the nation and the entire free world while leading to accusations from lawmakers that it was the president himself who had incited the riot.

"There is no question that the president formed the mob, the president incited the mob, the president addressed the mob," said Representative Liz Cheney (R-WY), the third-ranking House Republican. "He lit the flame."

The vote to certify the president-elect's victory in the Electoral College, the final step before his inauguration on January 20, is largely a matter of course, but party leaders in both chambers decided that delaying it, even briefly, would deliver the message that the mob had won. Lawmaker also opted not to seek to meet in an alternate location even though both the House and Senate are prepared for such action in the event the Capitol is inaccessible.

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Instead, they raced to finalize their votes accepting the state tallies, hoping it would send a very different signal to the stunned country: The nation's democratic institutions remain strong even under direct attack.

“We must and we will show to the country — and indeed to the world — that we will not be diverted from our duty, that we will respect our responsibility to the Constitution and to the American people,” Speaker Nancy Pelosi (D-CA) said while presiding over the House floor.

“The United States Senate will not be intimidated. We will not be kept out of this chamber by thugs, mobs or threats. We will not bow to lawlessness or intimidation,” Senate Majority Leader Mitch McConnell (R-KY) said as he reconvened the upper chamber Wednesday night.

The day’s proceedings were extraordinary even before the arrival of the violent mob, as more than 100 of Trump’s closest allies in both chambers had vowed to challenge the election results in as many as six battleground states where they claimed, without evidence, that fraud had been rampant.

The House and Senate were less than an hour into separately debating the first GOP objection to a state that Biden won — Arizona — when the rioters breached nearby office buildings and eventually the Capitol itself.

Both chambers went into recess for more than 5 1/2 hours as law enforcement struggled to contain the chaos unfolding inside the Capitol. The mobs breached the Senate chamber, broke the glass of one of the center doors leading into the House chamber and vandalized Speaker Pelosi's office nearby.

Both the House and Senate ultimately voted late Wednesday to reject the challenge to Arizona’s electoral votes on a bipartisan basis. That outcome was expected, but the day’s shocking events acted to diminish the number of Republican objectors.

Still, 121 Republicans in the House and six in the Senate voted to challenge Arizona’s results. Hours later, the House and Senate beat back a challenge to Pennsylvania's result by similar margins. The Senate rejected it by 92-7, while the House voted 282-138.

For an objection to be heard, federal law requires that it be made by at least one lawmaker in each chamber to trigger two hours of debate and a vote. GOP senators and House members had planned to also launch objections to Georgia, but ultimately backed down after the day’s chaos.

“When I arrived in Washington this morning, I fully intended to object to the certification of the electoral votes. However, the events that have transpired today have forced me to reconsider and I cannot now, in good conscience, object,” Senator Kelly Loeffler (R-GA), who lost reelection in a runoff the night before, announced on the Senate floor.

The Capitol itself bore physical damage hours after law enforcement cleared the rioters out of the building. Wednesday marked the first time that a group breached the Capitol since the British in August 1814.

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“This will be a stain on our country not so easily washed away,” said Senate Minority Leader Charles Schumer (D-NY) following the Senate’s return to the chamber following the riots. “But we are a resilient, forward-looking and optimistic people. And we will begin the hard work of repairing this nation tonight.”

Senate Party Makeup Set as Warnock, Ossoff Win Georgia Senate Seats Democrats have won control of the Senate after securing victories in two runoff races in Georgia, a historic shift that will effectively give the party full control of the government under President Joe Biden.

Democrat Raphael Warnock defeated Senator Kelly Loeffler (R-GA), while Democrat Jon Ossoff defeated Senator David Perdue (R-GA), in hotly contested runoff races, giving each party 50 seats in the Senate. Vice President Kamala Harris will cast the tie-breaking votes, giving Democrats control of the Senate for the first time since 2014.

Rev. Warnock’s victory over Senator Loeffler was called early in the morning on Wednesday, January 6. The race between Mr. Ossoff and Senator Perdue was closer and was not called until the afternoon.

Heading into Tuesday, January 5, Republicans held a 50-to-48 seat advantage in the Senate. Republicans only needed to win one of the two Georgia runoffs to maintain a slim majority in the Senate.

Democrats last controlled the House, Senate and White House when President Obama was first elected in 2008.

Rev. Warnock, the senior pastor at the Historic Ebenezer Baptist Church, where Martin Luther King, Jr. once preached, follows Sen. Tim Scott (R-SC) to become the second Black senator to represent a Southern state since Reconstruction.

Mr. Ossoff, the 33-year-old chief executive of a London-based documentary film company, will become the first Jewish senator from Georgia.

The last time the Senate was divided 50/50 was during the opening days of the George W. Bush Administration. As Republicans controlled the White House, Republicans were in the majority. However, the Majority Leader Trent Lott (R-MS) and Minority Leader Tom Daschle (D-SD) reached a historic power sharing agreement that saw equal representation on all committees and set up other procedural mechanisms that recognized that the chamber was equally divided.

"Mitch and Chuck are going to need to work together but it’s going to be a challenge for them and for the Senate," said former Senator Trent Lott, who was majority leader during another rare 50-50 Senate for several months in 2001.

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Schumer's first task as majority leader will be developing with McConnell what will be, in part, a power-sharing agreement with Republicans: a Senate organizing resolution that will lay out matters like committee membership, staff budgets, who gets which offices and other rules. The resolution needs 60 votes to pass, so Republicans are likely to negotiate more privileges than a usual minority would have.

“I look forward to sitting down with Leader McConnell,” Schumer said Wednesday, before chaos enveloped the Capitol. “Certainly, we’ll have to talk.”

House Impeaches Trump for a Second Time – With Some GOP Support House lawmakers on Wednesday, January 20 impeached former President Trump for his role in the deadly attack on the U.S. Capitol, capping an extraordinary week of violence, apprehension and partisan brawling in Congress just as Washington cranks up security in preparation for Joe Biden’s inauguration.

The 232-197 vote was historic: It made Trump the first president in the country’s history to be impeached twice. Half of all presidential impeachments have occurred during Trump’s term of office.

The Democrats’ single impeachment article charged Trump with misleading the country by falsely claiming a “landslide” victory in an election he lost, then whipping up a volatile crowd with violence-laced pleas to fight back against the electoral process. As a result, the article charged, Trump had “threatened the integrity of the democratic system, interfered with the peaceful transition of power, and imperiled a coequal branch of Government.”

The resolution was sponsored by Rep. Jamie Raskin (D-MD), a constitutional law expert. Raskin will serve as the lead impeachment manager on the part of the House when a trial occurs in the Senate.

Unlike the first debate, this time the president’s Democratic critics had support across the aisle. Ten Republicans joined every voting Democrat to approve the single impeachment article, which accuses Trump of inciting violence against the same federal government he leads.

Speaker Nancy Pelosi (D-CA), who oversaw both impeachment efforts, said President Trump’s refusal to concede his election defeat — and his subsequent efforts to rally supporters to the Capitol to overturn the election results — amounted to sedition. The president, she said, gave Congress no choice.

“We know we experienced the insurrection that violated the sanctity of the people's Capitol,” Pelosi said in a floor speech before the vote. “And we know that the president of the United States incited this insurrection, this armed rebellion, against our common country.

"He must go," she added. "He is a clear and present danger to the nation that we all love."

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In addition to GOP Conference Chair, Representative Liz Cheney (R-WY), the nine other Republicans who voted to impeach Trump were Representative John Katko (NY), the top Republican on the Homeland Security Committee; Representatives Fred Upton (MI) and Jamie Herrera Beutler (WA), co-chairs of the centrist Tuesday Group with Katko; Representatives Adam Kinzinger (IL) and Peter Meijer (MI), both war veterans; and Representatives Anthony Gonzalez (OH), David Valadao (CA), Tom Rice (SC), and Dan Newhouse (WA).

The impeachment vote will lead to a trial in the Senate, though the timing and outcome in the upper chamber are unclear.

In a remarkable statement, Senate Majority Leader Mitch McConnell (R-KY) declared that he had not determined how he would vote in the trial, saying he would listen to the legal arguments.

The first time Trump was impeached, there was clear opposition from Senate Republicans and only one GOP Senator, Mitt Romney (UT), voted in favor of one of the two articles of impeachment.

If all Democrats vote to convict, which is not a certainty in the Senate, 17 Republican votes would be needed to convict and vote separately to bar him from ever holding federal office again.

The long-term implications of both the Capitol siege and Trump’s second impeachment remain unclear.

Republicans opposing the impeachment effort in the House did not all defend Trump’s actions surrounding the Capitol assault; in fact, many condemned it. But they also warned that taking the drastic step of attempting to remove the president would only exacerbate the country’s already cavernous political divisions, inflaming the resentment of the president’s supporters — and perhaps leading to greater violence down the road.

Taking the floor just before the vote, House Minority Leader Kevin McCarthy (R-CA), a staunch Trump loyalist, conceded that Trump “bears responsibility” for the Capitol assault. But he quickly cautioned that impeachment “would further divide this nation” and “would further fan the flames of partisan division.”

Prior to the vote on impeachment, the House voted 223 to 205 (with only one Republican— Adam Kinzinger—voting with Democrats) to call on Vice President Mike Pence to “convene and mobilize the principal officers of the executive departments of the Cabinet to activate section 4 of the 25th Amendment to declare President Donald J. Trump incapable of executing the duties of his office and to immediately exercise powers as acting President.” Vice President Pence wrote Speaker Nancy Pelosi (D-CA) indicating he would not take such a step.

On Monday, January 25, House Democrats sent their article of impeachment to the Senate, officially putting him on trial.

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The ceremonial delivery was a legal formality. Senators were sworn in on Tuesday as jurors for the trial, which is expected to start in roughly two weeks.

On Tuesday, January 26, the Senate rejected an effort by Senator Rand Paul (R-KY) to declare the looming trial unconstitutional. The Senate voted 55-45 to set aside Paul's motion, with all but five GOP senators siding with Senator Paul. GOP Senators Mitt Romney (UT), Ben Sasse (NE), Susan Collins (ME), Lisa Murkowski (AK) and Pat Toomey (PA) voted with Democrats to table Senator Paul's point of order.

The vote is the clearest sign yet that Trump is heading toward a second acquittal and offers an early insight into which Republicans are lining up behind an argument that his second impeachment trial isn't constitutional.

Use of Congressional Review Act Could Come with Democratic Majority President-elect Biden's victory provides Congress with a valuable opportunity to overturn recent Trump Administration rulemakings through the use of the Congressional Review Act (CRA). The CRA allows new regulations to be overturned through a joint resolution of disapproval that needs a simple majority vote in both chambers and the President’s signature.

If a rule is overturned, an agency can’t take a similar action unless Congress passes another law allowing it.

With the Georgia Senate runoffs having given Democrats majority control of the Senate, the CRA is almost certain to play a significant role early in the 117th Congress.

Republicans at the start of the 115th Congress used their unified control of the House, Senate, and White House to overturn 16 rules, all of which were issued under the Obama administration or by Obama appointees.

Among the slew of regulations overturned during the first two years of President Donald Trump’s administration were Obama-era rules dealing with labor law violations by federal contractors, mining operations, and reducing leaks from oil and natural gas production.

Before the Republicans won the White House and both chambers of Congress in the 2016 election, only one rule had been overturned using the law. The only time the CRA had previously been used was in the opening days of the George W. Bush administration where Congress overturned a Clinton-era OSHA regulation.

The CRA requires federal agencies to submit most final rules to Congress and the Government Accountability Office before they can take effect.

Lawmakers must then act within specified time periods to use the law’s “fast track” procedures to block the rules. For instance, the Senate can pass a disapproval resolution with a simple majority, but it must act within 60 session days of a rule being submitted to Congress or published in the Federal Register.

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If Congress adjourns its annual session before the 60-day period expires, the clock resets starting on the 15th working day of the following session. That means Democrats in the 117th Congress could try to use the CRA to block Trump-era rules that were finalized since August 2020, according to several estimates.

The law also prevents “major” rules from taking effect during a 60-day review period. The Office of Information and Regulatory Affairs, part of the White House Office of Management and Budget, designates such rules if it determines they would do one of the following:

• Have an annual economic effect of $100 million or more. • Result in a major increase in costs or prices for consumers, industries, governments, or geographic regions. • Have significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of U.S.-based enterprises to compete with foreign-based enterprises in domestic and export markets.

White House Intervened to Weaken EPA Guidance on Forever Chemicals The Trump Administration intervened as the Environmental Protection Agency (EPA) was weighing a strict ban on imports of products that contain PFAS chemicals, substantially weakening the guidance.

As the EPA worked to limit the importation of any product with PFAS inside or out, the White House Office of Management and Budget (OMB) stepped in and significantly watered down the guidance in December, barring importation of only those products with a PFAS coating on the outside.

With the White House’s changes, companies can still import products that have components covered with PFAS on the inside without alerting the EPA. It’s not clear why the White House stepped in to weaken the guidance.

The Office of Information and Regulatory Affairs (OIRA) within OMB typically reviews major regulations before they are finalized but does not typically review guidance documents. An executive order from President Trump, however, allows the process.

That’s not the first time that’s happened under the Trump administration when it comes to PFAS.

The December guidance weakened by OMB was a follow up to a PFAS rule finalized by the agency in June laying out requirements for any “significant new use” of the chemical, a term that kicks off more oversight from EPA.

But in August, Senator Tom Carper (D-DE) asked for an investigation of that rulemaking process, alleging Nancy Beck, then the EPA’s principal deputy assistant administrator for the Office of Chemical Safety and Pollution Prevention, was involved in significantly weakening it.

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Senator Carper accused Beck of working to weaken the rule, “urging for the adoption of a complicated and time-consuming analytic barrier” when weighing whether a product with PFAS posed a reasonable potential for exposure.

The EPA at the time denied any involvement from Beck.

“These accusations against Nancy Beck are baseless. Dr. Beck was not involved in pushing for any provisions in the final rule,” EPA spokesman James Hewitt said in April.

The rule was finalized in June, disappointing environmentalists who hoped the EPA would take a more aggressive approach in regulating PFAS.

The December guidance that was weakened by OMB shows a commitment to a narrower interpretation of how the rule should be applied.

EPA branded the changes as a routine result of interagency review.

“Consulting with other federal agencies on actions is a normal process across government. When issuing a rule or guidance, EPA often engages in an interagency review process led by OMB. This collaboration is important as other agencies have information and expertise that may be useful to EPA,” an agency spokesperson said.

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 month as President-elect Biden announces his intent to nominate certain officials for various cabinet positions. As the Senate considers each nomination, we will bold the names of officials that have been confirmed. Note that not all officials below require Senate confirmation.

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.

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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

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 Intelligence the 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.

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National Economic Council Brian Deese Global Head of Sustainable Investing at BlackRock. Former senior advisor in the Obama Administration, 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. 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

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Education Miguel Cardona Currently Connecticut’s education commissioner Deputy Secretary of Defense Kathleen Hicks Currently heads Biden's transition team for the Pentagon, and director of the International Security Program at the Center for Strategic and International Studies. Served as deputy undersecretary of defense for Strategy, Plans and Forces from 2009-2012 and as principal deputy undersecretary of defense for policy from 2012-2013. White House Director for Louisa Terrell Served as Deputy Chief of Staff to Biden when he Legislative Affairs served in the Senate, worked on legislative affairs in the Obama Administration, she has also worked for consultants McKinsey and Co., Yahoo! and Facebook. Deputy Chief of Staff Bruce Reed Former President Bill Clinton's chief domestic policy adviser. He worked with Biden in the Obama White House and was a senior adviser on his campaign. Attorney General Merrick Garland Currently serves as a United States Circuit Judge of the United States Court of Appeals for the District of Columbia Circuit. Deputy Attorney General Lisa Monaco Former Homeland Security Adviser to President Obama. Labor Marty Walsh Current Mayor of Boston. Small Business Isabel Guzman Served as Deputy Chief of Staff at the SBA in the Administration Obama administration, and is currently director of California's Office of the Small Business Advocate. Commerce Gina Raimondo Current Governor of Rhode Island. Central Intelligence Agency William Burns Currently the president of the Carnegie Endowment for Director International Peace and served as deputy secretary of state under President Obama. USAID Samantha Power Former U.S. Ambassador to the United Nations Senior Advisor to the John McCarthy Deputy National Political Director on the Biden-Harris Counselor to the President Campaign throughout the primary and general election. Former Chief of Staff for U.S. Representative Brendan F. Boyle (D-PA) and former legislative aide to Representative Frank Pallone (D-NJ) Senior Advisor to the Deputy Zayn Siddique Chief of Staff for the Domestic and Economic Team of Chief of Staff the Biden-Harris Transition. Former Deputy Policy Director for Beto O’Rourke’s presidential campaign and a Senior Policy Advisor to his senate campaign. Senior Advisor to the Deputy Thomas Winslow Chief of Staff to the Campaign Manager on the Biden- Chief of Staff Harris Campaign, previously worked on Beto O'Rourke's campaign. Director of Presidential Lisa Kohnke Director of Scheduling for the Biden/Harris campaign. Scheduling Former Director of Global Affairs for two Mayors of Chicago, Rahm Emanuel and Lori Lightfoot. Also has worked in scheduling and advance for the U.S. Dept. of Commerce Secretary Penny Prtizker and in various roles in the Obama Administration. Chief of Staff for the Office of Sarah Feldmann Operations Director for the Domestic/Economic Management and Agency Review team on the Biden-Harris Transition; Administration former Director of Operations and Special Projects for John Hickenlooper's Senate campaign.

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Chief Diversity and Inclusion Michael Leach This will be the first-ever Chief Diversity and Inclusion Director Director for the White House. Served as Chief People, Diversity, & Inclusion Officer on the Biden-Harris Campaign. Former NFL employee and assistant to the Head Coach for the Chicago Bears. Deputy Director of Christian Peele Currently deputy lead for operations on the Biden- Management and Harris Transition, also served various roles in the Administration for Personnel Obama Administration.

Director of COVID-19 Jeffrey Wexler Previously worked on the COVID-19 Preparedness Operations team on the Biden-Harris Campaign and served as the Director of COVID-19 Preparedness on the Biden- Harris Transition, served as Director of Operations & Advance during the Obama-Biden administration. Deputy National Security Anne Neuberger National Security Agency’s Director of Cybersecurity, Advisor for Cyber and where she leads NSA’s cybersecurity mission Emerging Technology

Homeland Security Advisor Elizabeth D. Distinguished Professor at the Georgia Institute of and Deputy National Security Sherwood-Randall Technology and a Senior Fellow at Harvard Kennedy Advisor School’s Belfer Center for Science and International Affairs. Served in various capacities in the Obama Administration. Deputy Homeland Security Russ Travers Former Acting Director and the Principal Deputy Advisor Director of the National Counterterrorism Center. Additionally, served in various roles on the National Security Council. FEMA Deanne Criswell currently serves as the Commissioner of the New York City Emergency Management Department, previously worked at FEMA under the Obama Administration. EPA Deputy Administrator Janet McCabe Previously served as the acting assistant administrator for the Office of Air and Radiation at EPA for much of the Obama administration. Senior Adviser to the Anita Dunn Held various positions in the Obama Administration. President *Note - Dunn's position is expected to be temporary and she plans to return to her public affairs firm, SKDKnickerbocker, later this year. Deputy CIA Director David Cohen Held the position from 2015 to 2017 during the closing days of the Obama administration, also previously served as undersecretary for terrorism and financial intelligence in the Department of Treasury. Deputy Director of Office of Shalanda Young Currently the staff director and clerk for the House Management and Budget Appropriations Committee.

Deputy Assistant to the Kurt Campbell Current chairman of the board of Center for a New President American Security and a former State Department official in the Obama Administration. Deputy Agriculture Secretary Jewel Bronaugh Commissioner of the Virginia Department of Agriculture and Consumer Services Deputy Transportation Polly Trottenberg Led NYC's transportation department for the past seven Secretary years and served in Department of Transportation in the Obama Administration.

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Deputy HHS Secretary Andrea Palm Held several roles at HHS during the Obama Administration, also led Wisconsin Department of Health Services Deputy Interior Secretary Elizabeth Klein Deputy Director of the State Energy & Environmental Impact Center, served in roles in the Obama and Clinton administrations. Deputy Education Secretary Cindy Marten Currently superintendent of the San Diego Unified School District, 32-year career as an educator. FBI Director Christopher Wray President Biden plans to keep Christopher Wray in his current position as FBI director.

Officials under consideration for various cabinet positions:

Position Possible Prior Administration Experience / Current Role Candidate NASA Kendra Horn Former U.S. Representative from Oklahoma NASA Pam Melroy Former NASA Astronaut, she has worked at DARPA and FAA's Office of Commercial Space Transportation NASA Wanda Austin Former president and chief executive of The Aerospace Company NASA Gretchen Former NASA official McClain NASA Wanda Sigur Former vice president and general manager for civil space at Lockheed Martin USCIS Ur Jaddou Currently the leader of Biden's DHS transition agency review team, previously served for three years as USCIS chief counsel CISA Robert Silvers Partner at the Paul Hastings law firm, vice-chair of the firm's privacy and cybersecurity practice and co-chair of AI practice, served in various capacities at DHS under Obama Administration

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Bill Number Sponsors Title and/or Summary Summary/Status Latest Action Biden's proposal would: ‐ Provide an additional $1,400 to individuals Biden has indicated that this is the first step in the form of an economic impact in a two step Coronavirus relief proposal. payment. ‐ Provide for the continuation and The second proposal, which has not yet Legislation has not yet been introduced, enhancement of Federal Unemployment been detailed, is expected to focus on though Democratic Leaders in the Aid. economic recovery and include funding for Biden Coronavirus House and Senate have indicated the ‐ Provide $25B in rental assistance XX projects meant to stimulate the economy. Relief Proposal outline will be used to draft legislation ‐ Provide for a 15% SNAP boost that may move through the Budget ‐ Provide $25B for childcare providers Lawmakers hope to pass elements of the Reconciliation process. ‐ Includes the temporary expansion of Child current proposal by mid‐March either as a Tax Credits stand alone bill with bipartisan support or ‐ Would mandate sick leave through 9/30 through budget reconciliation along party ‐ Includes $350B in state and local funding lines. ‐ Includes a proposal to raise the federal minimum wage to $15/hr. The legislation was introduced on January To provide for the rescheduling Rep. Greg Steube 19, 2021 and referred to the Committee on H.R. 365 of marijuana into schedule III of the (R‐FL) Energy and Commerce, and the Committee Controlled Substances Act. on the Judiciary. A bill to amend the Federal Water Pollution Control Act to The legislation was introduced on January Sen. Amy S. 29 reauthorize certain programs relating to 22, 2021 and referred to the Committee on Klobuchar (D‐MN) nonpoint source management, and for Environment and Public Works. other purposes. The legislation would amend the Magnuson‐ Strengthening Fishing Communities and Stevens Fishery Conservation and The legislation was introduced on January 4, Rep. Don Young (R‐ H.R. 59 Increasing Flexibility in Fisheries Management Act to provide flexibility for 2021 and referred to the House Committee AK) Management Act fishery managers and stability for on Natural Resources. fishermen, and for other purposes. Bill Number Sponsors Title and/or Summary Summary/Status Latest Action The legislation was introduced on January 25, 2021, and referred to the House The legislation would block new fracking or Committee on Natural Resource. Rep. Salud Carbajal H.R. 456 California Land Protection Act oil and gas drilling on federal lands on (D‐CA) California’s central and southern coasts. Two additional California members, Representatives Brownley and Panetta, are original cosponsors of the legislation.

STAFF REPORT Date: February 23, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Administrative Policy No. 1.4, Investment Policy

Purpose Staff and PFM Asset Management (PFM) have reviewed Administrative Policy No. 1.4, Investment Policy to determine if any changes are needed. PFM has recommended that an additional type of investment be explicitly authorized by the Policy and that certain other changes be made to limits on investment types in the Policy. Other minor title and wording changes have been identified by staff.

Background/Analysis Periodic reviews of financial policies are important to ensure that policies are relevant and up-to-date with industry practices and legal provisions. Staff has reviewed the existing administrative Policy 1.4, codified in District Code Chapter 3.10. The following are highlights of the recommended changes:

• Allow investment in Asset-Backed Securities (ABS) with a rating category of “AA” or better and a maturity of five years or less. No more than 20% of the portfolio may be invested in this category.

• Allow investment of up to 40% of the portfolio in commercial paper if the District’s investment assets total more than $100 million.

• Eliminate the 10% limit on the outstanding commercial paper of any one issuer. Rather, impose a combined 10% per issuer limit on commercial paper and corporate notes.

• Allow investment in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates.

• In order to make the policy consistent with current staff responsibilities, all references to the Assistant General Manager (AGM) will be changed to the Director of Finance and Technology Services (Finance Director).

Alignment with Strategic Goals A key element to the District’s vision is to promote good stewardship of financial resources through accountability. A thorough policy provides oversight of the fiduciary responsibilities of District staff and PFM Asset Management.

February 23, 2021 Investment Policy Review Page 2

Fiscal Impact There is no immediate cost as a result of the recommended changes to the Investment Policy.

Recommendation Staff recommends that the Board of Directors adopt Resolution No. 2021-2-1 amending Administrative Policy No. 1.4, Investment Policy. On February 10, 2021 the Finance Committee reviewed the proposed updates and recommended review by the full Board of Directors.

Attachments: Attachment 1: Resolution No. 2021-2-1 Attachment 2: Policy No 1.4, Investment Policy Attachment 3: Memorandum from PFM Investments Advisors

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

RESOLUTION NO. 2021-2-1

RESOLUTION OF THE BOARD OF DIRECTORS OF THE CUCAMONGA VALLEY WATER DISTRICT ADOPTING AN AMENDED INVESTMENT POLICY NO. 1.4 FOR THE CUCAMONGA VALLEY WATER DISTRICT

WHEREAS, the Cucamonga Valley Water District (“District”) currently maintains an Investment Policy No. 1.4 to ensure prudent investment of funds not required for immediate expenses. It is the goal of the District to (1) ensure that the investment of such monies generates maximum return consistent with the safety of such investments; (2) satisfy any cash liquidity needs; and (3) maintain the integrity of such monies.

WHEREAS, pursuant to its responsibility to review policies at appropriate intervals, the Board of Directors has reviewed and amended the District’s Investment Policy No. 1.4.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Cucamonga Valley Water District as follows:

1. The amended and revised Investment Policy No. 1.4 is hereby approved and adopted. A copy of the amended and revised Policy is attached hereto and incorporated herein by reference.

2. As of the effective date of this Resolution, any and all previous policy statements which are in conflict with this Resolution shall be deemed to be superseded and of no further force or effect including.

3. This Resolution shall be effective as of the date of adoption.

ADOPTED this 23rd day of February, 2021

______Randall James Reed President, Board of Directors ATTEST:

______John Bosler Secretary, Board of Directors ADMINISTRATIVE POLICY MANUAL

POLICY NO. 1.4 DISTRICT CODE APPROVAL DATE Investment Policy Chapter 3.10 XX/XX/XXXX Sections 3.10.010 – 3.10.160 EFFECTIVE DATE XX/XX/XXXX

SECTION 1: INTRODUCTION (3.10.010) SECTION 2: SCOPE (3.10.020) SECTION 3: INVESTMENT OBJECTIVES (3.10.030) SECTION 4: DELEGATION OF AUTHORITY (3.10.040) SECTION 5: PRUDENCE (3.10.050) SECTION 6: INTERNAL CONTROLS (3.10.060) SECTION 7: ETHICS AND CONFLICTS OF INTEREST (3.10.070) SECTION 8: AUTHORIZED BROKER-DEALERS (3.10.080) SECTION 9: SAFEKEEPING OF SECURITIES (3.10.090) SECTION 10: AUTHORIZED INVESTMENTS (3.10.100) SECTION 11: DIVERSIFICATION AND MAXIMUM MATURITIES (3.10.110) SECTION 12: PROHIBITED INVESTMENTS (3.10.120) SECTION 13: PERFORMANCE (3.10.130) SECTION 14: INVESTMENT REPORTING (3.10.140) SECTION 15: POLICY ADOPTION AND REVIEW (3.10.150) SECTION 16: GLOSSARY OF TERMS (3.10.160)

SECTION 1: INTRODUCTION (3.10.010) The purpose of this investment policy (“Policy”) is to provide guidelines for the prudent investment of the Cucamonga Valley Water District’s (“District”) funds in conformance with California Government Code requirements governing the investment of public funds. Funds will be managed to provide for daily cash flow requirements and to meet the objectives of this Policy.

SECTION 2: SCOPE (3.10.020) This Policy applies to all operating funds of the District, which are under the control of the General Manager/CEO and/or the Assistant General Manager (AGM) Director of Finance and Technology Services (Finance Director). These funds are accounted for in the Cucamonga Valley Water District’s Comprehensive Annual Financial Report (CAFR). The investment of retirement-related funds is addressed in District Policy 1.6.

Bond proceeds shall be invested in securities permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, bond proceeds will be invested in the securities permitted by this Policy. Notwithstanding the other provisions of this Policy, the percentage or dollar portfolio limitations listed elsewhere in this Policy do not apply to bond proceeds.

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SECTION 3: INVESTMENT OBJECTIVES (3.10.030) A. As specified in Government Code Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the District's investment activities and of this Policy shall be:

a. Safety: Safety of principal is the District’s foremost investment objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among independent financial institutions offering a variety of securities with independent returns. Investments shall be made with the aim of avoiding capital losses due to issuer default, broker-dealer default or market value erosion.

b. Liquidity: The investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which are reasonably anticipated.

c. Yield: The District’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, as long as it does not diminish the objectives of Safety and Liquidity.

SECTION 4: DELEGATION OF AUTHORITY (3.10.040) The authority of the District’s Board of Directors (“Board”) to invest or reinvest funds of the District is delegated by Board Resolution in conjunction with the annual investment policy review. Management responsibility for the investment program is hereby delegated to the AGM Finance Director who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the AGM Finance Director. The AGM Finance Director shall establish procedures for the management of investment activities, including the activities of staff consistent with this Policy.

The AGM Finance Director may retain the services of an outside investment advisor or manager as approved by the Board to assist with the District’s investment program. Qualified outside managers will be either SEC Registered Investment Advisors or Bank Money Managers. The investment advisor shall make all investment decisions and transactions in strict accordance with State and Federal law, this Policy and such other written instructions as are provided. The investment advisor or manager may not take possession of the District’s cash or securities. The performance and service levels of investment advisors and managers shall be reviewed annually.

SECTION 5: PRUDENCE (3.10.050) All participants in the investment process shall recognize that the investment program is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism worthy of the public trust. The standard of prudence to be used by the District shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. The AGM Finance Director and the delegated investment officers, acting in accordance with written procedures and this Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

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Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

SECTION 6: INTERNAL CONTROLS (3.10.060) The AGM Finance Director shall establish a system of internal controls designed to prevent losses due to fraud, employee error, misrepresentation by third parties, unanticipated market changes, and/or imprudent actions by employees of the District. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. Compliance with this Policy and internal controls shall be reviewed annually by the District’s independent, external auditors.

SECTION 7: ETHICS AND CONFLICTS OF INTEREST (3.10.070) Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District’s General Manager/CEO any material financial interest in the financial institutions that conduct business with the District and they shall further disclose any large personal financial/investment positions that could be related to the performance of the District.

SECTION 8: AUTHORIZED BROKER-DEALERS (3.10.080) A competitive process, whenever practical, will be used for investment transactions. For any investment transaction not conducted directly with the issuer, it shall be the District’s policy to purchase securities only from authorized institutions and firms. No deposit of public funds shall be made except in a qualified public depository as established by state laws.

If the District plans to initiate investment transactions on its own behalf, excluding bank deposits and investments made directly with an issuer, the AGM Finance Director shall maintain a list of authorized broker/dealers and financial institutions that are approved for investment purposes. All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate and deemed by the District: a. Must be in business for at least three (3) years b. Proof of Financial Industry Regulatory Authority (FINRA) certification (not applicable to Certificate of Deposit counterparties) c. Proof of state registration d. Completed broker/dealer questionnaire (not applicable to Certificate of Deposit counterparties) e. Certification of having read and understood and agreeing to comply with the District’s Policy and are free of conflicts of interest f. Evidence of adequate insurance coverage

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If the District has contracted with an investment advisor to provide investment services, the investment advisor may use their own list of approved issuers, brokers/dealers and financial institutions to conduct transactions on the District’s behalf.

SECTION 9: SAFEKEEPING OF SECURITIES (3.10.090) To protect against potential losses by the collapse of individual securities dealers, all trades will be executed on a delivered versus payment (DVP) basis with the securities to be held in safekeeping by a third party custodian, acting as agent for the District under the terms of a custody agreement or a Master Repurchase Agreement. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) LAIF and local government investment pools (LGIPs); (ii) placement certificates of deposit, and, (iii) money market mutual funds, since the purchased securities are not deliverable. Evidence of each these investments will be held by the AGM Finance Director.

No outside broker-dealer or advisor may have access to the District’s funds, accounts or investments. Any transfer of funds handled through a broker-dealer must be approved by persons identified in the “Delegation of Authority” section of this Policy.

SECTION 10: AUTHORIZED INVESTMENTS (3.10.100) The District’s investments are governed by the Government Code. Within the investments permitted by the Government Code, the District seeks to further restrict eligible investment to the investments listed below. In the event an apparent discrepancy is found between this Policy and the Government Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section apply at the time the security is purchased. Ratings, where shown, specify the minimum credit rating category required at purchased. In the event a security held by the District is subject to a credit rating change that brings it below the minimum credit ratings specified in this Policy, the AGM Finance Director should notify the Board of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the change, prognosis for recovery or further rate drops, and the market price of the security.

a. United States Treasury Issues. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of the portfolio that may be invested in this category.

b. Federal Agency Obligations. Federal agency or United States government- sponsored enterprise senior debt obligations, participations, mortgage-backed securities or other instruments, including those issued by or fully guaranteed as to principal and interest by Federal agencies or United States government-sponsored enterprises. There is no limitation as to the percentage of the portfolio that may be invested in this category; however, purchases of callable Federal Agency obligations are limited to a maximum of 30 percent of the portfolio.

c. Municipal Debt. Registered treasury notes or bonds of this state or any of the other 49 United States, including bonds payable solely out of the revenues from a revenue-

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producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of this state or any of the other 49 United States.

Bonds, notes, warrants, or other evidences of indebtedness of any local agency, including the District’s own bonds, within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

Purchases are limited to securities that are rated in a rating category of “A” (long- term) and/or “A-1” (short-term) or their equivalents or better by a Nationally Recognized Statistical Rating Organization (“NRSRO”). A maximum of 30 percent of the portfolio may be invested in this category. d. Medium-Term Notes. Medium-term notes are defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases are limited to securities rated in a rating category of “A”, or its equivalent or better, by a NRSRO. A maximum of 30 percent of the portfolio may be invested in this category. e. Negotiable Certificates of Deposit. Negotiable certificates of deposit (NCDs) issued by a by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases are limited to institutions that are rated in a rating category of “A” (long-term) and/or “A-1” (short-term) or their equivalents or better by a NRSRO. NCDs for which the full amount of the principal and the interest that may be accrued during the maximum term of each certificate is insured by federal deposit insurance are exempt from the rating requirements. A maximum of 30 percent of the portfolio may be invested in this category. f. Placement Service Deposits. Deposits placed through a deposit placement service shall meet the requirements under Government Code Section 53601.8. The full amount of the principal and the interest that may be accrued during the maximum term of each deposit shall at all times be insured by federal deposit insurance. A maximum of 30 percent of the portfolio may be invested in this category.

g. Bank Deposits. FDIC insured or fully collateralized bank deposits, including, but not limited to, demand deposit accounts, savings accounts, market rate accounts, and time deposits. To be eligible to receive District deposits, the financial institution must be located in California and have received a minimum overall satisfactory rating, under the Community Redevelopment Act, for meeting the credit needs of California Communities in its most recent evaluation. The amount on deposit in any financial institution shall not exceed the shareholder’s equity. Bank deposits are required to be collateralized as specified under Government Code Section 53630 et. seq. The AGM Finance Director, at his/her discretion, may waive the collateralization requirements for any portion that is covered by federal deposit insurance. The District shall have a

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signed agreement with any depository accepting District funds per Government Code Section 53649. The maturity of time certificate of deposits (TCDs) may not exceed 1 year. There is no limit on the percentage of the portfolio that may be invested in bank deposits. However, a maximum of 20 percent of the portfolio may be invested in TCDs. h. Commercial Paper. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions: (i) is organized and operating in the United States as a general corporation, (ii) has total assets in excess of five hundred million dollars ($500,000,000), and (iii) has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less and not represent more than 10 percent of the outstanding paper of an issuing corporation. A maximum of 25 percent of the portfolio may be invested in this category, or 40 percent of the portfolio if the District’s investment assets total more than $100 million. i. Bankers’ Acceptances. Bankers’ acceptances, otherwise known as bills of exchange or time drafts, that are drawn on and accepted by a commercial bank. Purchases are limited to bankers’ acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System. Purchases of bankers’ acceptances may not exceed 180 days maturity. Eligible bankers’ acceptances are restricted to issuing financial institutions that have short-term debt rated in the rating category of “A-1” or its equivalent or better by a NRSRO. A maximum of 25 percent of the portfolio may be invested in this category. j. State of California Local Agency Investment Fund (LAIF). There is no limitation as to the percentage of the portfolio that may be invested in this category. However, the amount invested may not exceed the current maximum allowed by LAIF. k. Local Government Investment Pools (LGIP). Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7. To be eligible for purchase, the pool shall meet all of the following conditions: (i) must meet the requirements of California Government Code Section 53601(p), (ii) the pool must seek to maintain a stable Net Asset Value (“NAV”), and (iii) the pool must be rated “AAm” or its equivalent or better by a NRSRO. A maximum of 50 percent of the portfolio may be invested in this category.

Whenever the District has any funds invested in a Local Government Investment Pools, the AGM Finance Director shall maintain on file a copy of the pool’s current information statement. In addition, the AGM Finance Director should review the pool’s summary portfolio holdings on a quarterly basis.

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l. Money Market Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission.

The company shall have met either of the following criteria: (A) attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs and (B) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). A maximum of 20 percent of the portfolio may be invested in this category.

If the District has funds invested in a money market fund, a copy of the fund’s information statement shall be maintained on file. In addition, the AGM Finance Director should review the fund’s summary holdings on a quarterly basis.

m. Repurchase Agreements. Repurchase agreements are to be used as short-term investments not to exceed 90 days. Repurchase agreements shall only be made only with counterparties that are primary dealers of the Federal Reserve Bank of New York or a nationally or state-chartered bank that has or has had a significant banking relationship with the District. Furthermore, the counterparty shall have the following qualifications: (i) a long-term debt rating in a rating category of “A” or its equivalent or better by a NRSRO; (ii) a short-term credit rating of “A-1”, or its equivalent or better by a NRSRO; (iii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iv) five years of acceptable audited financial results; and (v) a strong reputation among market participants.

The District shall have a properly executed master repurchase agreement with each counterparty for which it enters into an agreement for repurchase agreements. Collateral of at least 102 percent of market value of principal and accrued interest is required. For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on an on-going basis according to market conditions. Market value must be calculated each time there is a substitution of collateral. Collateral is limited to obligations of the United States government and its agencies. Collateral must be delivered to the District’ custodian bank or handled under a properly executed master repurchase agreement. The District, or its trustee, shall have a perfected first security interest in all collateral. A maximum of 10 percent of the portfolio may be invested in this category. n. Supranationals. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter- American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Purchases are limited to securities that are rated in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 30 percent of the portfolio may be invested in this category.

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o. Asset-Backed Securities. A mortgage pass through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease- backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond with a maximum remaining maturity of five years or less. Securities shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO. A maximum of 20% of the portfolio may be invested in this category.

SECTION 11: DIVERSIFICATION AND MAXIMUM MATURITIES (3.10.110) It is the policy of the District to diversify its investment portfolio. Assets shall be diversified to eliminate the risk of loss resulting from over-concentration of assets in a specific maturity, a specific issuer or a specific class of securities. Diversification strategies shall be determined and revised periodically. Adequate diversification shall be applied to the individual issuers of debt, both within each class of investments and collectively. With the exception, of U.S. Treasuries, Federal Agency securities, LGIPs, and LAIF, the District’s investment in any one issuer is limited to 20 10 percent of the portfolio.

To the extent possible, the District will attempt to match its investments with anticipated cash flow requirements. The maximum maturity of individual investments shall not exceed the limits set forth in Section 10. Where no maturity limit is stated, no investment shall exceed a maturity of five years from the date of purchase unless the Board has granted express authority to make that investment either specifically or as a part of an investment program approved by the Board no less than three months prior to the investment. With respect to maximum maturities, this Policy authorizes investing bond reserve funds beyond five years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds.

SECTION 12: PROHIBITED INVESTMENTS (3.10.120) Section 53601.6 of the Government Code lists the investments that are prohibited. Prohibited investments shall include, but are not limited to, equity securities, inverse floaters, range notes, interest-only strips that are derived from a pool of mortgages, or any investment that could result in zero interest earned if held to maturity. The District may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. A local agency may hold these instruments until their maturity dates.

The purchase of any investment permitted by the Government Code, but not listed as an authorized investment in this Policy is prohibited without the prior approval of the Board.

SECTION 13: PERFORMANCE (3.10.130) The investment performance of the District’s operating portfolio shall be evaluated and compared to an appropriate benchmark in order to assess the success of the investment program relative to the District’s Safety, Liquidity and Yield objectives. This review will be conducted annually with the Board’s Finance Committee.

SECTION 14: INVESTMENT REPORTING (3.10.140) The AGM Finance Director will prepare a monthly report of investment that shall include a complete description of the portfolio, type of investments, issuers, maturity dates, par values and

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current market values of each component of the portfolio, list of transactions, including funds managed for the District by third party contract managers. The report will include a certification that: (1) all investment actions executed since the last report have been made in full compliance with this Policy and (2) the report shall include a statement denoting the ability of the District to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

SECTION 15: POLICY ADOPTION AND REVIEW (3.10.150) This Policy shall be adopted by resolution of the Board. Moreover, the Policy shall be reviewed on an annual basis and modifications, if any, must be approved by the Board.

SECTION 16: DEFINITION OF TERMS (3.10.160) The following definitions shall apply as they relate to this Policy:

AGENCY SECURITIES: Securities issued by a U.S. government-sponsored entity (GSE) and federally related institutions. Examples of a GSE include: Federal Farm Credit Bank System (FFCB), Federal Home Loan Bank (FHLB), and Federal Home Loan Mortgage Company (FHLMC-Freddie Mac), Federal National Mortgage Association (FNMA-Fannie Mae).

ASKED: The price at which securities are offered.

ASSET-BACKED SECURITIES (ABS): Securities whose income payments and hence value is derived from and collateralized (or "backed") by a specified pool of underlying assets which are receivables. Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can comprise common payments credit cards, auto loans, mortgage loans, and other types of assets. Interest and principal is paid to investors from borrowers who are paying down their debt.

BANKERS’ ACCEPTANCE (BA): A draft, bill, or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities.

BROKER: A broker brings buyers and sellers together for a commission.

CALLABLE SECURITY: A security that is redeemable by the issuer before the scheduled maturity. Bonds are usually called when the interest rates fall so significantly that the issuer can save money by floating new bonds at lower rates.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CD’s are typically negotiable.

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COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of the Cucamonga Valley Water District. It includes financial statements for each individual fund prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT (DVP): The delivery of securities with an exchange of money for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns with the goal of spreading risk throughout the portfolio holdings.

DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value.

LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary program created by state statute as an investment alternative for California’s local governments and Special Districts under the

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administration of the California State Treasurer’s Office. All securities are purchased under the authority of the Government Code Section 16430 and 16480.4.

LOCAL GOVERNMENT INVESTMENT POOL (LGIP): A state or local government pool offered to public entities for the investment of public funds.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): A credit rating agency that provides credit ratings that are used by the U.S. government and investors as benchmarks. Examples include Moody’s, Standard & Poor’s, and Fitch Ratings.

OFFER: The price asked by a seller of securities.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT INVESTOR STANDARD : An investment standard to be followed by those authorized to make investment decisions on behalf of a local agency. Those authorized shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of that agency.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less

Page 11 of 13 ADMINISTRATIVE POLICY MANUAL POLICY NO. 1.4, INVESTMENT POLICY than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return.

REPURCHASE AGREEMENT (REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this.

REVERSE REPURCHASE AGREEMENT (REVERSE REPO): A reverse-repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. The investor agrees to repurchase the securities at a specified date for the same cash value plus an agreed upon interest rate. Although the transaction is similar to a repo, the purpose of entering into a reverse repo is quite different. While a repo is a straightforward investment of public funds, the reverse repo is a borrowing.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SUPRANATIONAL: Securities issued or unconditionally guaranteed by multi-lateral international financial institutions whose member nations contribute capital and participate in management.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

YIELD: The rate of annual income return on an investment, expressed as a percentage.

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POLICY REVISION DATES

02/23/2021 (Resolution No. 2021-2-1) 02/12/2019 (Resolution No. 2019-2-4) 01/23/2018 (Resolution No. 2018-1-1) 02/23/2016 (Resolution No. 2016-10-1) 02/10/2015 (Resolution No. 2015-2-10) 02/11/2014 (Resolution No. 2014-2-1) 02/12/2013 (Resolution No. 2013-2-1) 12/13/2011 (Resolution No. 2011-12-1) 11/23/2010 (Resolution No. 2010-11-1) 12/08/2009 (Resolution No. 2009-12-1) 11/25/2008 (Resolution No. 2008-11-2) 01/09/2007 (Resolution No. 2007-1-1) 12/12/2006 08/25/2005 02/10/2004 (Resolution No. 2004-2-1) 02/05/2002 (Resolution No. 2002-2-2)

Page 13 of 13 January 13, 2021

Memorandum

To: Chad Brantley, CPA, Director of Finance and Technology Services Cucamonga Valley Water District

From: Sarah Meacham, Managing Director Richard Babbe, CCM, Senior Managing Consultant PFM Asset Management LLC

Re: 2021 Investment Policy Review

At your request, we reviewed the Cucamonga Valley Water District’s (the “District”) Investment Policy (the “Policy”) as part of the District’s annual review process. The current Policy is comprehensive and is in compliance with the current California Government Code (the “Code”) statutes regulating the investment of public funds.

We are recommending several Policy updates, as summarized below. In addition, we have attached a marked-up copy of the Policy to illustrate our recommendations.

The bulk of the recommendations are related to Senate Bill 998, which took effect on January 1, 2021. The Bill’s amendments to Code and our recommendations are described below. As revised, the Code:

• Allows local agencies that have more than $100 million of investment assets under management to invest up to 40% in commercial paper (the existing limit is 25% for all agencies other than a county or a city and county). As the District does not have more than $100 million of investment assets, this change does not apply to the District. However, we would recommend the District implement this change if it meets the required asset level in the future.

• Eliminates the 10% limit on the outstanding commercial paper of any one issuer and establishes a combined 10% per issuer limit on commercial paper and corporate notes. We recommend that the District eliminate the Policy’s 10% limit on the outstanding commercial paper as it is no longer in the Code. Rather than impose a 10% per issuer limit just for commercial paper and medium-term notes, we recommend the District lower the Policy’s current 20% per issuer limit to 10%. This would encourage diversification and would be more restrictive than Code as it applies across all corporate sectors.

• Allows local agencies to invest in securities issued or backed by the U.S. government that could result in zero or negative interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. While we do not anticipate negative market interest rates, we recommend the District incorporate this provision into the Policy so the District has the flexibility to invest if market rates go negative.

• Allows federally recognized Indian tribes to invest and participate in investment JPAs. This provision does not apply to the District.

In addition to the recommendations listed above, we recommend that the District add asset-backed securities (ABS) to the Policy. In today’s challenging investment market, the addition of ABS to the Policy would increase the District’s options for investing in high-rated corporate securities. As the universe of ABS issuers is different than other types of corporate securities, the addition of ABS securities to the Policy would enhance opportunities for portfolio diversification, further reducing the portfolio’s exposure to any one sector or issuer. We recognize that ABS have unique credit characteristics, so we have created a separate sub-committee as part of our credit committee to evaluate ABS before they are added to our approved list and to monitor these securities on an on-going basis. We would be happy to discuss further if you have any questions.

Please let us know if you have any questions or if would like to discuss our recommendations in more detail.

2

STAFF REPORT Date: February 23, 2021 To: Board of Directors From: John Bosler, General Manager/CEO Agenda Title: Deferred FY2021 and FY2022 CIP Projects

Purpose Staff has evaluated the financial condition of the Water Fund in order to assess the effects of the COVID-19 pandemic during the first six months of the current fiscal year. Understanding the impacts of the pandemic on the revenues, cash flows, and reserves of the Water Fund are critical to decisions about ongoing investment in capital infrastructure. The Board of Directors is asked to authorize staff to proceed with the identified capital projects by releasing the precautionary deferral of these projects.

Background/Analysis On June 23, 2020, the Board of Directors approved Resolution 2020-6-1 adopting the Biennial Operating and Capital Improvement Budget for Fiscal Years 2021 and 2022 (Budget). The resolution identified certain capital improvement projects that would be deferred if the financial condition of the Water Fund was negatively impacted by the pandemic or the regional economy. The Budget was balanced for fiscal years 2021 and 2022 including Capital Improvement Projects (CIP) that totaled $11.3 million and $10.3 million, respectively. Included in these CIP Budgets are the projects that were identified to potentially be deferred.

District staff have closely monitored water production and water revenues in order to understand how behavioral changes and the pandemic restrictions affected water use. Overall water production during the six months July through December is 8% above the projections in the Budget. This has translated into revenues that have also exceeded the Budget by approximately 9%. The efforts of Operations Department during the same six month period have resulted in overall savings on Production and Treatment operating expenses of over 40% compared to the Budget. All of these factors demonstrate that the Water Fund can make the required debt service payments and has the ability to invest in maintaining its capital infrastructure by completing these projects. Cash flow has not been interrupted during the pandemic due to the variety of convenient ways the District allows customers make payments. Also, the efforts of the Customer Service Department have kept delinquent accounts to a minimum. The District received over $55 million in utility payments during the same six month period.

Alignment with Strategic Goals A key element to the District’s vision is to promote good stewardship of financial resources through accountability. Verifying the financial health of the Water Fund before investing in capital projects supports these goals.

February 23, 2021 Deferred FY2021 and FY2022 CIP Projects Page 2

Fiscal Impact There is no budgetary fiscal impact to releasing the deferral of these CIP projects since they were included in the balanced FY2021-FY2022 Budget. The fiscal year totals of these projects are $2,431,750 for Fiscal Year 2021 and $4,325,500 for Fiscal Year 2022.

Recommendation Staff recommends that the Board of Directors review and release the deferral of the attached list of CIP Projects. The list was reviewed on February 2, 2021 by the Engineering Committee, and on February 10, 2021 by the Finance Committee.

Attachments: List of Deferred CIP Projects for FY2021 & FY2022

Submitted by: Chad Brantley, Director of Finance and Technology Services

CUCAMONGA VALLEY WATER DISTRICT WATER CAPITAL PROJECTS - SECONDARY LIST FY 2021 2022 Budget

Budget Budget Project Request Request Outside Funding Proposed Proposed Proposed Project Number Description 2021 2022 Funding Source 2023 2024 2025 Total 9055 Office Equipment Educational Activity Displays & Signage in the CVWD Lobby 10,000 10,000 Desktop, Laptop, and Tablet Computer Replacements 48,000 48,000 48,000 48,000 48,000 240,000 Subtotal - 9055 Office Equipment (2 Projects) 58,000 48,000 48,000 48,000 48,000 250,000 9071 Reservoirs CP20051 Construct New Reservoir 5B-2 650,000 4,000,000 4,750,000 Subtotal - 9071 Reservoirs (1 Project) 650,000 4,000,000 4,750,000 9072 Telemetry SCADA Radio Network Communication Towers 235,000 235,000 Subtotal - 9072 Telemetry (1 Project) 235,000 235,000 9075 Building Improvement Campus Interior LED Lighting 11,250 11,250 22,500 Campus Interior Painting 56,250 56,250 ELC Building Improvements 22,500 97,500 120,000 FP Building Maintenance & Improvements 15,000 112,500 127,500 LWMWTP Perimeter Fence Repair & Coating 40,000 40,000 Subtotal - 9075 Building Improvement (5 Projects) 88,750 277,500 366,250 9085 Water Mains Const Waterline in Garnet St from Roberds St to La Vine St 800,000 800,000 Waterline in 6th St from Corona Ave to Vineyard Ave 600,000 600,000 Subtotal - 9085 Water Mains (2 Projects) 1,400,000 1,400,000 Total Water Capital Projects 2,431,750 4,325,500 48,000 48,000 48,000 7,001,250

Monday, June 15, 2020 Page 1 of 1

ENGINEERING COMMITTEE NOTES February 2, 2020

Attendees: Committee members: Randall Reed (Chair) and Kevin Kenley

Staff members: John Bosler, Carrie Guarino, Eduardo Espinoza, Rob Hills, Chad Brantley, Praseetha Krishnan, Tuan Truong, Robert Koczko, Gidti Ludesirishoti, Frank Chu, Eric Grub, and Taya Victorino

Members of the Public: None.

Call to Order: 5:00 p.m.

Public Comment: None.

Additions/Deletions to Agenda: None.

Introductory Remarks by Chair Reed Chair Reed 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 Reed took a roll call of Committee members and staff present on the call as listed above.

1. Ontario/CVWD Interagency Agreement for Top Golf • Staff presented a draft Special Connection Agreement for Sewer Service between CVWD and the City of Ontario to support a new Top Golf development. The property is located on the southeast corner of Archibald and 4th Street. • Although the property is in Ontario’s service area for water and sewer, only the District has a nearby sewer main available. Ontario intends to provide water service and requested that CVWD provide sewer service to the property. • Ontario's goal is to be the single point of contact and billing for all utility services in their service area and is willing to accept the responsibilities and liabilities. • This agreement is also required as an intermediate step prior to coordination with LAFCO to allow the District to provide service. • This agreement was based on a similar agreement between CVWD and the City of Upland approved by District's Board of Directors in 2018. In that scenario, the District provides water and the City of Upland provides sewer.

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ENGINEERING COMMITTEE NOTES February 2, 2020

• This agreement was negotiated between Ontario and CVWD staff with advice from respective legal counsels. • Chair Reed asked how this could impact Prop. 218 notification requirements. Staff indicated this was a good question, and would confirm those details with the board by the next stage in approval. • The committee concurred with staff’s recommendation to forward this item to the full Board of Directors for approval.

2. CIP B List Updates (verbal) • Staff provided a verbal update on the CIP Deferred Projects List, otherwise referred to as the “B List”. • Engineering staff provided a background of the approach. Last spring 2020 staff brought the current two-year CIP budget to this committee, finance committee, and the Board just as the COVID-19 pandemic was already impacting the local and broader economy and the financial impact to the District was unclear. Staff proactively identified certain projects in the water fund, although important, could be reprioritized or deferred until the economic impacts to the District could be more understood. These projects were compiled in a separate "secondary" table or has also been referred to as the "B list". The projects in this list represent up to $2.5M in FY 2021 and $4.5M in FY 2022 in cost deferrals in the water fund. All projects including the B-list were reviewed and vetted by the engineering committee and conditionally approved by the board pending actual financial impacts to the District. The sewer and recycled water budgets are much smaller and their respective funds were in a good position to move forward as programmed. • At present, almost a year into the COVID pandemic and 8 months after the CIP budget was conditionally approved staff is advising the engineering committee that the District is in good financial position to move forward with B-list projects. • Finance staff updated the committee that the Water Fund is having a very strong year. Water sales revenue remained strong. The Operations Division also continued to leverage the Dry Year Yield program to save on operational expenses. Further, both budget years were balanced with all projects, including the B-list. • It was also noted that only a few large projects made up the majority of the cost deferrals. Further deferral would delay and backlog key infrastructure improvements. • The committee concurred with staff’s recommendation to forward this item to the finance committee for review and comment, and to the Board of Directors for consideration and approval.

Meeting Adjourned at 5:35 p.m.

Page 2

HUMAN RESOURCES/RISK MANAGEMENT COMMITTEE NOTES February 4, 2021

Attendees: Committee members: James V. Curatalo (Chair) and Mark Gibboney

Staff members: John Bosler, Carrie Guarino, Chad Brantley, Eduardo Espinoza, Roberta M. Perez, Taya Victorino and Robbie Victorino

Members of the Public: None.

Call to Order: 11:00 a.m.

Public Comment: None

Additions/Deletions to Agenda: None

Introductory Remarks by Chair Curatalo

Chair Curatalo 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 Curatalo took a roll call of Committee members and staff present on the call, as listed above.

1. Committee Officers • Director Curatalo will remain committee chair.

2. Employee Policy No. 3.17, California Crime Victim Leave • Staff proposed the adoption of a new policy, Employee Policy No. 3.17, California Crime Victim Leave. On September 28, 2020, Governor Newsom signed Assembly Bill (AB) 2992, which expands existing law providing protected leave for employees who are victims of domestic violence, sexual assault, or stalking, to include leave for victims of other crimes or offenses “that caused physical injury or that caused mental injury and a threat of physical injury.” The newly signed legislation also provides protected leave for an employee “whose immediate family member is deceased as a direct result of a crime” and expands the types of documentation for leave eligibility that an employee may provide to verify that a crime or abuse occurred.

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HUMAN RESOURCES/RISK MANAGEMENT COMMITTEE NOTES February 4, 2021

• The Committee concurred and recommended forwarding the item to the Board of Directors for consideration.

3. Employee Policy No. 3.18, Leave for Victims of Domestic Violence, Sexual Assault, Stalking or Crime • Staff proposed the adoption of a new policy, Employee Policy No. 3.18, Leave for Victims of Domestic Violence, Sexual Assault, Stalking or Crime. On September 28, 2020, Governor Newsom signed into law Assembly Bill (AB 2017), which revised Labor Code 233, known as “Kin Care,” to provide that an employee has the right to designate sick leave as for kin care; or for the employee’s own health condition or for obtaining relief if the employee is a victim of domestic violence, sexual assault, or stalking. Employees may take time off to seek relief, including restraining orders, temporary restraining orders, and other injunctive relief, to help ensure the employee’s own safety or their defined family member’s safety, health, and welfare. • The Committee concurred and recommended forwarding the item to the Board of Directors for consideration.

4. 2021 Employee Safety Training Calendar/COVID-19 Update • Staff presented the Committee with the 2021 safety employee-training calendar. Each year staff prepares an annual training calendar that reflects the recommended and required occupational training for the calendar year. Training opportunities are available to staff on campus with in-house or outsourced trainers, online courses with Target Solutions, and offsite. • The majority of training topics are eligible as contact hours for staff to use towards license recertification required for their position. Training and licenses required for each job description is the employees’ responsibility to maintain. The District utilizes the TargetSolutions software provided by the ACWA/JPIA to host employee certification requirements and setup frequent reminder notifications for upcoming expiration and renewals. TargetSolutions provides a visual dashboard of certifications and licenses every time staff logs on to their account. • Staff provided an update on th COVID-19 employee dashboard and other reosurces.

Meeting Adjourned at 11:25 am

Page 2

FINANCE COMMITTEE NOTES February 10, 2021

Attendees: Committee members: Randall Reed (Chair) and Mark Gibboney

Staff members: John Bosler, Carrie Guarino, Chad Brantley, Eduardo Espinoza, Rob Hills, Agnes Boros, Frank Chu, Robert Kalarsarinis, Eric Grubb, Tuan Truong, Jennifer Fillinger, and Andrea Dutton

Members of the Public: Robert Porr and Lora Carpenter, Fieldman Rolapp Assoc. Brian Forbath, Stradling Yocca Carlson & Rauth Jeffrey Bower and Jack Tsang, Bank of America Securities

Call to Order: 10:00 a.m.

Public Comment: None

Additions/Deletions to Agenda: None

Introductory Remarks by Chair Reed Chair Reed 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 Reed took a roll call of Committee members and staff present on the call as listed above.

1. Committee Officers  Discussion ensued regarding committee officer positions. Chair Reed nominated Director Gibboney to serve in the role of Chair for the committee. Director Gibboney agreed. The slate of officers going forward will be: Chair: Mark Gibboney Member: Randall Reed 2. Debt Refunding Opportunity (Verbal)  Staff introduced the financial advisors, attorneys and bank underwriters who have been assembled in order to consider the issuance of bonds to re-finance a portion of the District’s long-term debt.  Lora Carpenter and Jack Tsang provided the committee with a presentation showing the details of the proposed bond re-financing plan. The proposal involves refinancing the outstanding balance of

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FINANCE COMMITTEE NOTES February 10, 2021

the 2011 COP’s and the 2012 Revenue Bonds. Refinancing this debt is projected to save approximately $11 million of interest cost over remaining term of about 21 years. 3. Capital Improvement Projects “B” List Update  Staff updated the committee on the current economic conditions of the District based on water sales and operational cost savings during the first six months of the fiscal year.  Based on healthy economic results, staff recommends that the District move forward with the Capital Improvement Projects that were included on the list that would be deferred only if economic conditions worsened.  There is no budgetary impact to completing these projects because the projects were included in the balanced two-year Budget. 4. Administrative Policy No. 1.4, Investments  Staff and PFM Investment Advisors have performed the annual review of the Investment Policy.  Recommended changes to the policy include the addition of Asset Backed Securities as an allowable investment type as well as other minor changes consistent with California Government Code.  The amended policy will be brought to the full Board of Directors for review and adoption on February 23, 2021. 5. Rate Study Timeline Update (Verbal)  Staff proposed a draft timeline of key events in the water rate study process.  The committee concurred with the draft timeline and target dates.

Meeting Adjourned at 11:20 a.m.

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