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090617JWSBODFINAL.Pdf WORKSHOP MEETING OF THE BOARD OF DIRECTORS WITH MET DIRECTORS MUNICIPAL WATER DISTRICT OF ORANGE COUNTY 18700 Ward Street, Board Room, Fountain Valley, California September 6, 2017, 8:30 a.m. AGENDA PLEDGE OF ALLEGIANCE ROLL CALL PUBLIC PARTICIPATION/COMMENTS At this time members of the public will be given an opportunity to address the Board concerning items within the subject matter jurisdiction of the Board. Members of the public may also address the Board about a particular Agenda item at the time it is considered by the Board and before action is taken. The Board requests, but does not require, that members of the public who want to address the Board complete a voluntary “Request to be Heard” form available from the Board Secretary prior to the meeting. ITEMS RECEIVED TOO LATE TO BE AGENDIZED Determine need and take action to agendize item(s), which arose subsequent to the posting of the Agenda. (ROLL CALL VOTE: Adoption of this recommendation requires a two-thirds vote of the Board members present or, if less than two-thirds of the Board members are present, a unanimous vote.) ITEMS DISTRIBUTED TO THE BOARD LESS THAN 72 HOURS PRIOR TO MEETING Pursuant to Government Code Section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District’s business office located at 18700 Ward Street, Fountain Valley, California 92708, during regular business hours. When practical, these public records will also be made available on the District’s Internet Web site, accessible at http://www.mwdoc.com. (NEXT RESOLUTION NO. 2060) PRESENTATION/DISCUSSION/INFORMATION ITEMS 1. INPUT OR QUESTIONS ON MET ISSUES FROM THE MEMBER AGENCIES/MET DIRECTOR REPORTS REGARDING MET COMMITTEE PARTICIPATION Recommendation: Receive input and discuss the information. 2. SERIES OF DISCUSSIONS ON THE CALIFORNIA WATERFIX – PRESENTATION BY METOPOLITAN CHIEF FINANCE OFFICER GARY BREAUX Recommendation: Review and discuss the information presented. 1 Page 1 of 112 Workshop Board Agenda September 6, 2017 3. MET ITEMS CRITICAL TO ORANGE COUNTY (The following items are for informational purposes only – a write up on each item is included in the packet. Discussion is not necessary unless requested by a Director) a. MET’s Water Supply Conditions b. MET’s Finance and Rate Issues c. Colorado River Issues d. Bay Delta/State Water Project Issues e. MET’s Ocean Desalination Policy and Potential Participation by MET in the Doheny Desalination Project and in the Huntington Beach Ocean Desalination Project (Poseidon Desalination Project) f. Orange County Reliability Projects g. East Orange County Feeder No. 2 h. South County Projects Recommendation: Discuss and provide input on information relative to the MET items of critical interest to Orange County. 4. METROPOLITAN (MET) BOARD AND COMMITTEE AGENDA DISCUSSION ITEMS a. Summary regarding August Board Meeting b. Review items of significance for MET Board and Committee Agendas Recommendation: Review and discuss the information presented. CLOSED SESSION 5. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: (1 Case) ADJOURNMENT Note: Accommodations for the Disabled. Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning Maribeth Goldsby, District Secretary, at (714) 963-3058, or writing to Municipal Water District of Orange County at P.O. Box 20895, Fountain Valley, CA 92728. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so that District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. 2 Page 2 of 112 Item No. 2 DISCUSSION ITEM September 6, 2017 TO: Board of Directors FROM: Robert Hunter, General Manager Staff Contact: Harvey De La Torre Melissa Baum-Haley SUBJECT: SERIES OF DISCUSSIONS ON THE CALIFORNIA WATERFIX – PRESENTATION BY METOPOLITAN CHIEF FINANCE OFFICER GARY BREAUX STAFF RECOMMENDATION Staff recommends the Board of Directors review and discuss this information REPORT This summer, the Metropolitan Water District of Southern California held a series of workshops on issues related to the construction, operations and financing for the California WaterFix. In concert, Metropolitan has issued three policy white paper addressing the physical infrastructure, operations, and costs of the project. Metropolitan has also scheduled a special Board meeting on September 26 to consider the investment decision on the California WaterFix. In preparation to this Metropolitan Board action, MWDOC has concurrently been holding a series of discussions in Orange County on the CA WaterFix, with presentations from key Metropolitan staff: On July 5, Metropolitan Bay-Delta Manager Steve Arakawa presented the key terms and provisions of the recently completed Biological Opinion, the status of the EIR/EIS & Key Permits, State Water Resource Control Board Hearings, and Metropolitan Board review. On August 2, Metropolitan General Manager Jeff Kightlinger presented the findings of two of MET’s whitepapers: 1) Physical Infrastructure and 2) Operations of the CA WaterFix. Budgeted (Y/N): N Budgeted amount: None Core _X_ Choice __ Action item amount: N/A Line item: Fiscal Impact (explain if unbudgeted): Page 3 of 112 Page 2 On August 30, Roger Patterson, Assistant General Manager for MET overseeing Metropolitan's strategic water initiatives for the Colorado River and Sacramento-San Joaquin Bay Delta was the guest speaker at the MWDOC Policy Dinner. On September 6, we have scheduled MET Chief Finance Officer Gary Breaux to discuss the findings of MET’s last whitepaper - Financing and Cost Allocation and MET’s staff recommendation for the September Board action. As shown below is the presentation schedule for both MET and MWDOC meetings and topics of discussion. Presentation Presentation Date Description Topic Metropolitan MWDOC Update Completion of the Biological Opinions June 27 July 5 Status of the EIR/EIS & Key Permits and State Control Board Hearings White Pater #1: Project features including protection July 10 August 2 Physical for seismic risks Infrastructure Design and Construction Enterprise Cost Estimate Construction budget and schedule White Pater #2: Project operations July 25 August 2 Operations Biological opinions o Section 7 Biological Opinion - Federally listed species o Section 2081 Permit –State listed species Range of supply/Expected yield Water Quality Ability to manage water transfers White Pater #3: Proposed Cost Allocation and August 14 September 6 Finance/Cost Financing Mechanisms Allocation o State/Federal o State Water Contractors Cost share analysis and cost impact to rates Board Workshop/ Board Questions and Follow Up September 26 August 30 General Discuss Board Action September 26 --- Attachments: Metropolitan White Paper #1 Physical infrastructure (summary) Metropolitan White Paper #2 Operations (summary) Metropolitan White Paper #3 Finance and Cost Allocation (summary & full paper) Page 4 of 112 MODERNIZING THE SYSTEM: CALIFORNIA WATERFIX INFRASTRUCTURE 1 The first in a series of three policy papers prepared for the consideration of Metropolitan’s Board of Directors in advance of planned summer meetings and decisions in Fall 2017. Modernizing and improving California’s water system is essential for the reliable delivery of water supplies to much of the state. About 30 percent of the water that flows out of taps in Southern California homes and businesses comes from Northern California watersheds and flows through the Sacramento-San Joaquin Delta. But the Delta’s declining ecosystem and 1,100 miles of levees are increasingly vulnerable to earthquakes, flooding, saltwater intrusion, climate change and further environmental degradation. California WaterFix is the product of more than a decade of review, planning, and rigorous scientific and environmental analysis by water experts, engineers and conservationists, as well as unprecedented public comment. The proposed project will improve the security of our water system by fixing aging infrastructure and constructing new, state-of-the art facilities using innovative technologies and engineering practices. Significant planning work for the design and construction of the project has been performed by the state, water agencies, and construction and engineering firms, which have determined the project is buildable. Details of the project features, actions to address public comment, risk management, schedule projection and cost estimates are addressed in a new white paper and summarized below. An extensive planning process evaluated Specific steps were taken during the design effort to various alignments, facility configurations reduce or eliminate the impact of the new facilities and system options. on the environment and Delta communities. As a result of input during the environmental planning Approach • The system would be capable of diverting process, the following changes were made: to Design & up to 9,000 cubic feet-per-second from the Sacramento River and capturing additional wet • Reduced
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