SPECIAL

BOARD OF DIRECTORS MEETING

September 26, 2019

2:00 p.m.

City of Ontario – Council Chambers 303 E. “B” Street, Ontario, CA

SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS CHINO BASIN DESALTER AUTHORITY

September 26, 2019 2:00 p.m. Council Chambers, of the City of Ontario 303 E. “B” Street, Ontario, CA

All documents available for public review are on file with the Authority’s secretary located at 2151 S. Haven Avenue, Suite 202, Ontario, CA 91761.

NOTICE AND AGENDA

CALL TO ORDER

FLAG SALUTE

PUBLIC COMMENT Members of the public may address the Board at this time on any non-agenda matter. Please complete a Comment Card and give it to the Secretary. Comments are limited to three (3) minutes per individual. State your name and address for the record before making your presentation. This request is optional, but very helpful for the follow-up process. Under the provisions of the Brown Act, the CDA Board is prohibited from taking action on oral requests. However, Board Members may respond briefly or refer the communication to staff. The CDA Board may also request the Secretary to calendar an item related to your communication at a future CDA Board meeting. CONSENT CALENDAR ITEMS Consent Calendar items are expected to be routine and non-controversial to be acted upon by the Board at one time without discussion. If any Board member, staff member, or interested person requests that an item be removed from the Consent Calendar, it will be moved to the first item on the Action Items. 1. MINUTES OF SEPTEMBER 5, 2019 SPECIAL BOARD MEETING

2. TREASURER'S FINANCIAL AFFAIRS REPORT FOR QUARTER ENDED JUNE 2019 Report by: Jose Garcia, CDA Principal Accountant

3. TREASURER’S REPORT ON GENERAL DISBURSEMENTS FOR THE QUARTER ENDED JUNE 2019 Report by: Jose Garcia, CDA Principal Accountant

4. INVESTMENT REPORT Report by: Jose Garcia, CDA Principal Accountant

5. AUDITOR’S ENGAGEMENT LETTER Report by: Michael Chung, CDA CFO/Treasurer

ACTION ITEMS Prior to action of the CDA Board, any member of the audience will have the opportunity to address the CDA Board on any item listed on the agenda, including those on any consent calendar. Please submit a comment card to the secretary with the agenda item number noted. 6. PROFESSIONAL SERVICES AGREEMENT FOR THE CHINO I SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SYSTEM PROGRAMMING SUPPORT SERVICES Report by: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve a Professional Services Agreement with Cannon Corporation, in the not-to- exceed amount of $150,000 for Chino I Supervisory Control and Data Acquisition system programming support services for FY 2019/20; and 2. Authorize the General Manager/CEO to finalize and execute the agreement and approve up to $150,000 in authorized expenditures and extend the contract for up to four additional one-year periods consistent with the CDA Board approved budget.

7. PURCHASE OF REVERSE OSMOSIS (RO) MEMBRANES ELEMENTS Report by: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve a purchase order with Dupont Water Solutions for the supply of 294 RO membrane elements in the amount of $124,950.

8. CONTRACT WITH EVOQUA WATER TECHNOLOGIES FOR SUPPLY OF AMBERLITE PWA15 AND AMBERLITE HPR4800 CI RESINS Report by: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve a contract with Evoqua Water Technologies for the supply and delivery of Amberlite PWA15 and Amberlite HPR4800 CI Resins. 2. Authorize the General Manager/CEO to finalize and execute the initial contract and amendment for (1) one-year period; and 3. Authorize the General Manager/CEO to authorize expenditures up to the approved annual budgeted amounts.

9. CONSTRUCTION CONTRACT AWARD FOR THE SOUTH ARCHIBALD PLUME RAW WATER PIPELINE PROJECT PHASE I (SPECIFICATION NO. CDA SAP19-017) Report by: Cindy Miller, South Archibald Plume Project Manager Staff Recommendation: 1. Approve a construction contract award to Gwinco Construction & Engineering, Inc. for construction of the Raw Water Pipeline Project Phase I (Spec No. CDA SAP19-017) in the not-to-exceed amount of $1,447,265. 2. Authorize the General Manager/CEO to execute the contract and approve authorized expenditures up to a not-to-exceed total of $1,591,992.

September 26, 2019 - Special Chino Basin Desalter Authority Board Meeting Page 2 of 4 10. PHASE 3 EXPANSION: AGREEMENT WITH CAROLLO ENGINEERS FOR CONCENTRATE REDUCTION FACILITY MODIFICATIONS ENGINEERING SERVICES DURING CONSTRUCTION, INSPECTION SERVICES, AND FIELD ENGINEERING SERVICES Report by: Cindy Miller, South Archibald Plume Project Manager Staff Recommendation: 1. Approve a Professional Services Agreement with Carollo Engineers for engineering and inspection services in the not-to-exceed amount of $93,880; and 2. Authorize the General Manager/CEO to finalize and execute the amendment and approve authorized expenditures up to a not-to-exceed total of $103,268.

11. COUNTY OF SAN BERNARDINO AGREEMENT REGARDING JOINT FACILITY DEVELOPMENT Report by: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve the agreement with the County of San Bernardino; and 2. Authorize the General Manager/CEO to execute the agreement, subject to non- substantial revisions.

INFORMATION ITEMS Information items are non-action items presented to the Board for their information. 12. QUARTERLY SOUTH ARCHIBALD PLUME REPORT Report By: Cindy Miller, South Archibald Plume Program Manager

13. QUARTERLY OPERATIONS REPORT Report By: Todd Minten, CDA Operations Manager

STAFF COMMENTS

Deputy CDA General Counsel, Allison Burns CDA CFO/Treasurer, Michael Chung . CDA General Manager/CEO, Tom O’Neill

CLOSED SESSION The Authority may adjourn to a Closed Session to consider litigation matters, personnel matters, or other matters as provided for in the Ralph M. Brown Act (Section 54950 et seq., of the Government Code).

14. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN 0218-231-13, 15, City of Ontario CDA Negotiators: Tom O’Neill, Allison Burns Negotiating parties: SC Ontario Development Company Under negotiation: Price and terms of payment

September 26, 2019 - Special Chino Basin Desalter Authority Board Meeting Page 3 of 4 15. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION: CONSIDERATION OF INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(4) (TWO POTENTIAL CASES)

16. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION: SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(2) (ONE POTENTIAL CASES)

DIRECTOR COMMENTS

ADJOURN

Any person with a disability who requires accommodations in order to participate in this meeting or for package materials in an alternative format should telephone Executive Assistant Casey Costa at (909) 218-3730, at least 48 hours prior to the meeting in order to make a request for a disability-related modification or accommodation. Copies of records provided to Board Members which relate to any agenda item to be discussed in open session may be obtained from Chino Basin Desalter Authority at 2151 S. Haven Avenue, Suite 202, Ontario, CA 91761. Declaration of Posting

I, Casey Costa, Executive Assistant to the Chino Basin Desalter Authority, hereby certify that a copy of this agenda has been posted by 2:00 p.m. at the Chino Basin Desalter Authority’s main office, 2151 S. Haven Ave., Ontario, CA on Monday, September 23, 2019.

______Casey Costa, Executive Assistant

September 26, 2019 - Special Chino Basin Desalter Authority Board Meeting Page 4 of 4

Board of Directors Meeting

Agenda Item No. 1

SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE CHINO BASIN DESALTER AUTHORITY

MINUTES September 5, 2019

The Special Meeting of the Board of Directors of the Chino Basin Desalter Authority was held at the City of Ontario, 303 E. “B” Street, Ontario, CA, on the above date. The meeting was called to order at 2:00 p.m. by Director Robert Stockton, Western Municipal Water District.

Directors Present: Robert Stockton, Western Municipal Water District – Chair Tom Haughey, City of Chino – Vice Chair Betty Anderson, Jurupa Community Services District - Secretary Art Bennett, City of Chino Hills Greg Newton, City of Norco Jim Bowman, City of Ontario J. Arnold Rodriguez, Santa Ana River Water Company

Directors Absent: Michael Camacho, Inland Empire Utilities Agency

Others Present: Tom O’Neill, CDA General Manager/CEO Michael Chung, CDA CFO/Treasurer Todd Minten, CDA Operations Manager Casey Costa, CDA Executive Assistant Allison Burns, CDA Deputy General Counsel Chris Bonadurer, City of Ontario Derek Kawaii, Western Municipal Water District Bob Bowcock, Integrated Resources Management/SB County Airports

FLAG SALUTE

The Pledge of Allegiance was led by Tom Haughey, City of Chino

PUBLIC COMMENT ON NON-AGENDA ITEMS

There were no comments from the public.

CDA Special Board of Directors Meeting – DRAFT MINUTES September 5, 2019 Page 2 of 7

ACTION ITEMS Prior to action of the CDA Board, any member of the audience will have the opportunity to address the CDA Board on any item listed on the agenda, including those on any consent calendar. Please submit a comment card to the secretary with the agenda item number noted.

1. MINUTES OF AUGUST 1, 2019 SPECIAL BOARD MEETING Motion: It was moved by Director Haughey/City of Chino and seconded by Director Bowman/City of Ontario to approve Action Item 1. Motion carried: Ayes: T. Haughey/Chino, G. Newton/Norco, J. Bowman/Ontario, B. Anderson/JCSD, J.A. Rodriguez/SARWC, R. Stockton/WMWD

Noes: None

Absent: None

Abstained: A. Bennett/Chino Hills

2. LEASE OF SANTA ANA RIVER INTERCEPTOR CAPACITY Report By: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve an agreement with Santa Ana Watershed Project Authority for the lease of .4 MGD of Santa Ana River Interceptor (SARI) capacity; and 2. Authorize the General Manager/CEO to finalize and execute the agreement and approve $305,000 in expenditures.

General Manager O’Neill reviewed the recommendation to approve an agreement with Santa Ana Watershed Project Authority to lease additional SARI capacity to produce an additional 2 MGD water while the Concentrate Reduction Facility is undergoing modifications. The agreement has an initial term of six months at a cost of approximately $305,000. There were no questions or comments. Motion: It was moved by Director Anderson/Jurupa Community Services District and seconded by Director Haughey/City of Chino to approve Action Item 2. Motion carried: Ayes: T. Haughey/Chino, A. Bennett/Chino Hills, G. Newton/Norco, J. Bowman/Ontario, B. Anderson/JCSD, J.A. Rodriguez/SARWC, R. Stockton/WMWD

Noes: None

Absent: None

Abstained: None

CDA Special Board of Directors Meeting – DRAFT MINUTES September 5, 2019 Page 3 of 7

3. PHASE 3 EXPANSION PROJECT: CONSTRUCTION CONTRACT AWARD FOR CHINO II DESALTER CONCENTRATE REDUCTION FACILITY CHEMICAL STORAGE AND METERING SYSTEM MODIFICATIONS AND PRIMARY RO CONCENTRATE PIPING MODIFICATIONS, CDA EXP3-19-07 Report By: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve the contract award to Pascal & Ludwig for construction of the Chino II Desalter CRF Chemical Storage and Metering System Modifications and Primary RO Concentrate Piping Modifications in the not-to-exceed amount of $340,600. 2. Authorize the General Manager/CEO to execute the contract and approve authorized expenditures up to a not-to-exceed total of $391,690. 3. Authorize the General Manager/CEO to file a Notice of Completion upon completion of the project. General Manager O’Neill reviewed the recommendation to award a contract to Pascal & Ludwig for modifications to the Concentrate Reduction Facility (CRF) which will provide a solution to the over-production of solids and enable the direction of concentrate flow to the SARI and the CRF, which will allow more operational flexibility and increase production. The project was advertised on PlanetBids, 67 contractors were notified, and 3 prospective bidders in attendance at the mandatory pre-bid meeting. There were no bids were submitted. Pascal & Ludwig visited the site several times and were very interested in bidding, but a subcontractor withdrew shortly before bids were due. CDA Legal Counsel advised that, according to Public Contract Code and other relevant authority, CDA is not required to re-bid the project and can negotiate a contract directly with a qualified contractor. Staff requested a proposal from Pascal & Ludwig who submitted a proposal in the amount of $340,000. Their proposal was reviewed by the Engineer and the Project Manager, who advised that the cost was a little high, but still considered reasonable. It was asked whether the Engineer provided an estimate for what the cost should be, and why other Contractors did not bid the project. General Manager O’Neill replied that the Engineer did not provide an estimate but offered that it on the high side within a reasonable range. Additionally, he replied that, besides Pascal & Ludwig, there were two other potential bidders in attendance at the mandatory pre-bid meeting; one firm was too busy and the other did not have expertise in this type of work. There were no further questions. Motion: It was moved by Director Bowman/City of Ontario and seconded by Director Bennett/Chino Hills to approve Action Item 3.

Motion carried: Ayes: T. Haughey/Chino, A. Bennett/Chino Hills, G. Newton/Norco, J. Bowman/Ontario, B. Anderson/JCSD, J.A. Rodriguez/SARWC, R. Stockton/WMWD

Noes: None

Absent: None

Abstained: None

CDA Special Board of Directors Meeting – DRAFT MINUTES September 5, 2019 Page 4 of 7

4. CONTRACT WITH MORTON SALT, INC. FOR SUPPLY OF SODIUM CHLORIDE Report By: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve a contract with Morton Salt, Inc., for supply and delivery of medium source sodium chloride (salt); and 2. Authorize the General Manager/CEO to finalize and execute the initial contract and amendments to extend the contract for (3) one-year periods; and 3. Authorize the General Manager/CEO to authorize expenditures up to the approved annual budgeted amounts.

General Manager O’Neill reviewed the recommendation to award a contract to Morton Salt for supply of sodium chloride, used for the ion exchange system at Chino I and Chino II Desalters, for an initial term through June 30, 2021 and the option to renew for (3) one-year periods. A competitive request for proposals (RFP) was advertised via PlanetBids for a two-week period. Two proposals were received, from Morton Salt and Step Saver. Morton Salt is our current provider and was the low bidder.

Motion: It was moved by Director Anderson/Jurupa Community Services District and seconded by Director Haughey/City of Chino to approve Action Item 4. Motion carried: Ayes: T. Haughey/Chino, A. Bennett/Chino Hills, G. Newton/Norco, J. Bowman/Ontario, B. Anderson/JCSD, J.A. Rodriguez/SARWC, R. Stockton/WMWD

Noes: None

Absent: None

Abstained: None

5. CONTRACT WITH LHOIST NORTH AMERICA FOR SUPPLY OF CALCIUM HYDROXIDE AQUEOUS SLURRY (HYDRATED LIME SLURRY) Report By: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve a contract with Lhoist North America for the supply and delivery of calcium hydroxide aqueous slurry (hydrated lime slurry). 2. Authorize the General Manager to finalize and execute the contract and authorize expenditures up to the approved annual budgeted amount.

General Manager O’Neill reviewed the recommendation to award a 5-year contract to Lhoist North America for supply of hydrated lime slurry. An RFP was advertised via PlanetBids from July 12, 2019 to July 26, 2019. Notifications were sent to 14 vendors, but no proposals were received. Lhoist North America, CDA’s current supplier of the product, was unaware of the bid advertisement and the RFP was re-issued on PlanetBids from July 31, 2019 to August 7, 2019. Lhoist proposed pricing for a 5-year contract, offering their current rate for the first two years of the contract, with a 2% increase for years 3, 4 and 5. It was questioned how the current supplier was unaware of the bid advertisement; General Manager O’Neill replied that CDA had advised Lhoist CDA Special Board of Directors Meeting – DRAFT MINUTES September 5, 2019 Page 5 of 7

about the upcoming bid advertisement, but they inadvertently failed to submit a bid in response to the initial advertisement. Motion: It was moved by Director Anderson/Jurupa Community Services District and seconded by Director Bowman/City of Ontario to approve Action Item 5. Motion carried: Ayes: T. Haughey/Chino, A. Bennett/Chino Hills, G. Newton/Norco, J. Bowman/Ontario, B. Anderson/JCSD, J.A. Rodriguez/SARWC, R. Stockton/WMWD

Noes: None

Absent: None

Abstained: None

6. CONTRACT WITH KING LEE FOR SUPPLY OF REVERSE OSMOSIS ANTISCALANTS Report by: Tom O’Neill, CDA General Manager/CEO Staff Recommendation: 1. Approve a contract with King Lee Technologies for supply and delivery of Reverse Osmosis Antiscalant; and 2. Authorize the General Manager/CEO to finalize and execute the initial contract and amendments to extend the contract for (3) one-year periods; and 3. Authorize the General Manager/CEO to authorize expenditures up to the approved annual budgeted amounts.

General Manager O’Neill reviewed the recommendation to award a contract to King Lee for supply of reverse osmosis antiscalants. An RFP was advertised via PlanetBids for the required time. Notifications were sent to 13 vendors and 3 proposals were received. King Lee was the low bidder. Separation Processes, Inc. was consulted to evaluate the proposals and recommended the product proposed by King Lee. Motion: It was moved by Director Anderson/Jurupa Community Services District and seconded by Director Rodriguez/Santa Ana River Water Company to approve Action Item 6. Motion carried: Ayes: T. Haughey/Chino, A. Bennett/Chino Hills, G. Newton/Norco, J. Bowman/Ontario, B. Anderson/JCSD, J.A. Rodriguez/SARWC, R. Stockton/WMWD

Noes: None

Absent: None

Abstained: None

CDA Special Board of Directors Meeting – DRAFT MINUTES September 5, 2019 Page 6 of 7

7. CONSIDERATION AND POSSIBLE ACTION ON SCHEDULING A SPECIAL BOARD MEETING ON SEPTEMBER 26, 2019, AND CANCELLATION OF THE REGULAR BOARD MEETING ON OCTOBER 3, 2019. Report By: Tom O’Neill, CDA General Manager/CEO Director Stockton/WMWD advised that he will not be available on September 26, 2019, but Director Galleano would attend as the Alternate Director. Motion: It was moved by Director Rodriguez/Santa Ana River Water Company and seconded by Director Anderson/Jurupa Community Services District to approve Action Item 7. Motion carried: Ayes: T. Haughey/Chino, A. Bennett/Chino Hills, G. Newton/Norco, J. Bowman/Ontario, B. Anderson/JCSD, J.A. Rodriguez/SARWC, R. Stockton/WMWD

Noes: None

Absent: None

Abstained: None

STAFF COMMENTS

i. Deputy CDA General Counsel, Allison Burns had no comments. ii. CDA CFO/Treasurer, Michael Chung had no comments. iii. CDA General Manager/CEO, Tom O’Neill updated the Board that the II-12 monitoring well has been drilled to 500 ft.; zone testing is underway, and the Regional Board has requested the testing of an additional zone. He reported that the County Airport Agreement has been finalized and will be brought to the Board for approval at the September 26, 2019 Board Meeting.

CLOSED SESSION The Authority may adjourn to a Closed Session to consider litigation matters, personnel matters, or other matters as provided for in the Ralph M. Brown Act (Section 54950 et seq., of the Government Code). 8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN 0218-231-13, 15, City of Ontario CDA Negotiators: Tom O’Neill, Allison Burns Negotiating parties: SC Ontario Development Company Under negotiation: Price and terms of payment

9. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION: CONSIDERATION OF INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(4) (TWO POTENTIAL CASES) CDA Special Board of Directors Meeting – DRAFT MINUTES September 5, 2019 Page 7 of 7

10. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION: SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(2) (ONE POTENTIAL CASES)

Director Stockton/WMWD recused himself from discussion of Closed Session Item 8.

The Board recessed into Closed Session at 2:18 p.m. and reconvened at 2:25 p.m. Deputy General Counsel Burns reported on Closed Session Items 8, 9 and 10. Board gave direction to staff and General Counsel. There was no reportable action.

DIRECTOR COMMENTS

There were none.

ADJOURNMENT – There being no further business to come before the Board, the meeting was adjourned at 2:26 p.m.

Secretary of the Board of Directors/cc

Board of Directors Meeting

Agenda Item No. 2

Agenda Report September 26, 2019 SECTION: CONSENT ITEM

SUBJECT: TREASURER’S FINANCIAL AFFAIRS REPORT FOR THE QUARTER ENDED JUNE 30, 2019

RECOMMENDATION: The Treasurer's Financial Affairs Report for the quarter ended June 30, 2019 is an informational item for the Board’s review.

BACKGROUND: In accordance with California State Code Section 53646(b) (1) and the Authority’s Investment Policy, a quarterly investment report shall be submitted to members of the Board for review. This report includes in part, the investment types, name of investment institutions, maturity dates, amount of deposit, cost of the investment, current market value, and rate of interest/earnings yield.

The Treasurer's Financial Affairs Report for the quarter ended June 30, 2019, is submitted in a format consistent with State requirements. Total cash, investments and restricted deposits were $25,104,889 compared to the previous quarter ended March 31, 2019, balance of $32,114,160. The decrease of $7,009,271 included a debt service payment of $3.7 and a refund of $3.9M for FY17/18 Reconciliation of Allocated Costs.

The investment portfolio rate of return was 1.59%, compared to 1.41% for the quarter ending in March 31, 2019.

The report denotes investments transactions that have been executed in accordance with the criteria stated in the Authority’s Investment Policy (Resolution No. 2015-01).

The item was reviewed and approved by the Finance Committee on September 19, 2019.

IMPACT ON BUDGET: The interest earned on the Authority’s investment portfolio will continue to increase the Authority’s reserves.

Prepared by: Jose Garcia, CDA Principal Accountant Page 1 of 1

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

CHINO BASIN DESALTER AUTHORITY

TREASURER'S REPORT OF FINANCIAL AFFAIRS For the Quarter Ended June 30, 2019

All investment transactions have been executed in accordance with the criteria stated in the Authority's Investment Policy (Resolution No. 2015-01), adopted by the Chino Basin Desalter Authority's Board of Directors during its regular meeting held on September 11, 2014. The funds anticipated to be available during the next six-month period are expected to be sufficient to meet all foreseen expenditures during the period.

* A Joint Powers Authority CHINO BASIN DESALTER AUTHORITY Cash and Investment Summary Quarter Ended June 30, 2019

Unrestricted Cash, Bank Deposits, and June March Bank Investment Accounts (a) $11,976,257 $18,512,668

Investments Local Agency Investment Fund (LAIF) $5,164,350 $5,164,350 U.S Government Sponsored Entities 3,970,660 3,970,660 Certificate of Deposits 3,993,622 4,466,482 Medium Term Note - - Total Investments $13,128,632 $13,601,492

Total Unrestricted Cash and Investments Available to the Authority $25,104,889 $32,114,160

Total Unrestricted, Investments, and Restricted Deposits as of June 30, 2019 $25,104,889 $32,114,160

(a) includes $2,352,234 of Expansion Project Funds and $7,748,864 of South Archibald Plume Project Funds

2 of 6 CHINO BASIN DESALTER AUTHORITY Cash and Investment Category Quarter Ended June 30, 2019

Unrestricted Accounts

Cash, Deposits, and Bank Investment Accounts Demand (Checking) Accounts Citizens Business Bank Demand/ Sweep Account $1,315,670 Citizens Business Bank Expansion Demand/ Sweep Account 2,352,234 Citizens Business Bank S Archibald Plume Demand/ Sweep Account 7,748,864 Citizens Business Bank Payroll Account 39,570 US Bank Custodial Account 519,919 Total Cash, Bank Deposits, and Bank Investment Accounts $11,976,257

Investments LAIF Regular Account $5,164,350 Certificate of Deposits $3,993,622 U.S Government Sponsored Entities $3,970,660 Total Investments $13,128,632

Total Unrestricted, Investments, and Restricted Deposits as of June 30, 2019 $25,104,889

Total Cash, Investments, and Restricted Deposits as of 06/30/2019 $25,104,889 Less: Total Cash, Investments, and Restricted Deposits as of 03/31/2019 $32,114,160 Total Quarterly Increase (Decrease) ($7,009,271)

3 of 6 CHINO BASIN DESALTER AUTHORITY Cash and Investment Detail Quarter Ended June 30, 2019

Par Principal Term June June % Maturity Market Investments Amount Amount (Days) Amortization Value Yield Date Value

Unrestricted Accounts Demand/Sweep Account $1,315,670 $1,315,670 N/A N/A $1,315,670 1.10% N/A $1,315,670 Subtotal CBB $1,315,670 $1,315,670 $1,315,670 1.10% $1,315,670

Expansion Demand/Sweep Account $2,352,234 $2,352,234 N/A N/A $2,352,234 1.10% N/A $2,352,234 Subtotal Expansion CBB $2,352,234 $2,352,234 $2,352,234 1.10% $2,352,234

Citizens Business Bank Payroll Checking $39,570 $39,570 N/A N/A $39,570 N/A N/A $39,570 Subtotal CBB $39,570 $39,570 $39,570 N/A $39,570

Citizens Business Bank South Archibald Plume Account $7,748,864 $7,748,864 N/A N/A $7,748,864 1.10% N/A $7,748,864 Subtotal CBB $7,748,864 $7,748,864 $7,748,864 N/A $7,748,864 US Bank Custodial Account $519,919 $519,919 N/A N/A $519,919 0.00% N/A $519,919 Subtotal USB $519,919 $519,919 $519,919 0.00% $519,919

Total Cash, Bank Deposits and Bank Investment Accounts $11,976,257 $11,976,257 $11,976,257 $11,976,257

LAIF Accounts Regular Account $5,000,000 $5,000,000 N/A N/A $5,164,350 2.55% N/A $5,164,350 Subtotal LAIF Accounts $5,000,000 $5,000,000 $5,164,350 2.55% $5,164,350

Negotiable Certificate of Deposits Capital One Bank USA $246,000 $246,000 $245,934 2.00% 8/12/2019 $245,934 Discover Bank $246,000 $246,000 $245,894 1.95% 8/12/2019 $245,894 BMW Bank of North America $246,000 $246,000 $245,929 2.00% 8/14/2019 $245,929 First Source Bk South $47,000 $47,000 $46,981 1.60% 8/14/2019 $46,981 Investors Community Bank $249,000 $249,000 $248,935 1.70% 8/14/2019 $248,935 State Bank of India - Chicago $246,000 $246,000 $245,926 2.15% 8/19/2019 $245,926 Capital One, NA $246,000 $246,000 $246,327 2.30% 8/12/2020 $246,327 Goldman Sachs BK USA $246,000 $246,000 $246,327 2.35% 8/12/2020 $246,327 Everbank Jacksonville FL $246,000 $246,000 $245,646 2.05% 8/14/2020 $245,646 Comenity Capital BK $249,000 $249,000 $249,339 2.35% 8/17/2020 $249,339 HSBC Bank USA, NA $247,000 $247,000 $244,172 1.70% 6/10/2021 $244,172 Synchrony Bank (FKA GE Capital) $248,000 $248,000 $245,121 1.50% 6/17/2021 $245,121 Wells Fargo Bk NA $249,000 $249,000 $246,116 1.75% 6/17/2021 $246,116 East Boston Savings Bank $248,000 $248,000 $244,617 1.50% 6/23/2021 $244,617 Morgan Stanley Bank Na $246,000 $246,000 $248,553 2.75% 2/22/2023 $248,553

4 of 6 CHINO BASIN DESALTER AUTHORITY Cash and Investment Detail Quarter Ended June 30, 2019

Par Principal Term June June % Maturity Market Investments Amount Amount (Days) Amortization Value Yield Date Value

Sallie Mae Bank $246,000 $246,000 $248,982 2.80% 2/23/2023 $248,982 First National Bank of McGrego $250,000 $250,000 $248,823 2.30% 6/28/2024 $248,823

Subtotal Negotiable Certificate of Deposits $4,001,000 $4,001,000 $3,993,622 1.92% $3,993,622

U.S Government Sponsored Entities Freddie Mac FHLMC (3134GANW0) $2,000,000 $2,000,000 $1,973,300 1.500% 10/27/2021 $1,973,300 Freddie Mac FHLMC (3134GBAF9) $2,000,000 $2,000,000 $1,997,360 1.750% 3/29/2022 $1,997,360

Subtotal U.S. Gov't Sponsored Entities $4,000,000 $4,000,000 $3,970,660 1.63% $3,970,660

Total Investments $13,001,000 $13,001,000 $13,128,632 $13,128,632

Total Cash, Investments, and Restricted Deposits as of June 30, 2019 $24,977,257 $24,977,257 $25,104,889 $25,104,889

5 of 6 CHINO BASIN DESALTER AUTHORITY Cash and Investment Yield Quarter Ended June 30, 2019

Cash, Bank Deposits, Bank Investment Accounts and Directed Investment Category Amount Invested Yield

Investment in the Local Agency Investment Fund $5,164,350 2.55% U.S Government Sponsored Entities $3,970,660 1.63% Certificate of Deposits $3,993,622 1.92% Investment in Medium Term Note $0 0.00% $13,128,632 2.08% Bank Investment Accounts Citizens Business Bank - Demand/Sweep Account $1,315,670 1.10% Citizens Business Bank - Expansion Demand/Sweep Account 2,352,234 1.10% Citizens Business Bank - S Archibald Plume Demand/Sweep Account 7,748,864 1.10% US Bank Custodial Account 519,919 0.00% $11,936,687 1.05%

Total Investment Portfolio/Rate of Return $25,065,319 1.59%

Restricted/Transitory/Other Demand Accounts Amount Invested Yield Other Accounts - Payroll Account at CBB 39,570 N/A Total Other Accounts/Rate of Return $39,570 0.00%

Total Authority Directed Deposits $25,104,889

6 of 6

Board of Directors Meeting

Agenda Item No. 3

Agenda Report September 26, 2019 SECTION: CONSENT ITEM

SUBJECT: TREASURER’S REPORT ON GENERAL DISBURSEMENTS

RECOMMENDATION:

Staff recommends that the Board review the attached:

1. Check Register/ACH/Wire Transfers for the period of April 1, 2019, through June 30, 2019; 2. Employee’s Payroll for April 1, 2019 to June 30, 2019.

BACKGROUND: General Account The check register covers voucher numbers 214477 – 214636 for a total amount of $846,045.81. The ACH/Wire payments for the General Account total $10,856,578.70.

Expansion Account The check register covers voucher numbers 1433 – 1443 for a total amount of $349,822.50. The ACH/Wire payments for the Expansion Account total $340,209.17.

South Archibald Plume Account The check register covers voucher numbers 3029 – 3035 for a total amount of $74,196.94. The ACH/Wire payments for the S. Archibald Plume account total $185,834.16.

Disbursement for the General, Expansion, and Plume Accounts for check vouchers and ACH/Wire payments for the period total $12,652,687.28.

Payroll Account Total Net Payroll for the period is $94,549.52. Six employees are currently on the payroll.

This item was reviewed and approved by the Finance Committee on September 26, 2019.

IMPACT ON BUDGET: The cash held by the Authority is reduced as a result of paying the Authority’s authorized expenditures.

Prepared by: Jose Garcia, CDA Principal Accountant Page 1 of 1

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214356 6/21/2019 [1500] NAPA AUTO PARTS ( Void check 0214356) (1,094.04) 214477 4/11/2019 [1678] ACWA JPIA ( Invoices JPIA Q2 FY1819, JPIA Q3 2,026.34 FY1819) 214478 4/11/2019 [1662] ALL AMERICAN CRANE MAINTENANCE ( Furnish and 5,343.11 install parts on JLG Lift VQUI0208 for repair) 214479 4/11/2019 [1030] AMP MECHANICAL INC ( FY 18/19 AC Maintenance ) 1,237.00

214480 4/11/2019 [1044] AQUASYSTEC ( FY 18/19 SCADA Programming 10,875.00 Support) 214481 4/11/2019 [1735] ARAMARK UNIFORM AND CAREER APPAREL GROUP 436.81 INC/AUS WEST LOCKBOX ( Invoices 001450588230, 001450600281) 214482 4/11/2019 [1674] ASAP INDUSTRIAL SUPPLY ( Rebuild - Check Rite 2,964.55 Model VO315XBT) 214483 4/11/2019 [1623] AT&T ( Invoices 0368307403, 0378307401) 1,804.31 214484 4/11/2019 [1071] JIM W BOWMAN ( BM STIPEND 4/4/19) 150.00 214485 4/11/2019 [1179] CALIFORNIA DEPARTMENT OF TAX AND FEE 593.00 ADMINSTRATION (BOARD OF EQUALIZATION) ( Sales & Use Tax payable for CY2018. Account # 100-183578. (Confirmation #0-004-826-626)) 214486 4/11/2019 [1127] CONSOLIDATED ELECTRICAL DISTRIBUTOR - CORONA 166.47 ( Parts) 214487 4/11/2019 [1716] DOANE AND HARTWIG WATER SYSTEMS INC dba 613.78 D&H WATER SYSTEMS INC ( Invoices I 2019-0289, I 2019- 0302) 214488 4/11/2019 [1748] EUGENE A WILL dba BASECAMP PROCESS 2,019.45 COMPONENTS LLC ( Pinch Valves) 214489 4/11/2019 [1700] FP MAILING SOLUTIONS DBA FRANCOTYP-POSTALIA, 129.14 INC. ( FY 18/19 Postage Machine Rental) 214490 4/11/2019 [1116] GRISWOLD INDUSTRIES dba CLA- 9,633.01 VAL.SOUNDCAST.GRISWOLD CASTINGS ( Invoices 763498R, 763499R, 764765, 764766) 214491 4/11/2019 [1212] HACH COMPANY ( Invoices 11323843, 11328750, 6,425.61 11376753) 214492 4/11/2019 [1583] TOM HAUGHEY ( BM STIPEND 4/4/19) 150.00 214493 4/11/2019 [1568] JPR SYSTEMS INC ( FY18/19 Electrical Parts and 2,024.42 Power Supplies) 214494 4/11/2019 [1253] KONICA MINOLTA BUSINESS SOLUTIONS I ( FY 18/19 164.02 Copy Charges)

1 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214495 4/11/2019 [1719] LHOIST NORTH AMERICA OF ARIZONA INC ( Invoices 12,712.13 1190207137, 1190207541) 214496 4/11/2019 [1283] MERCHANTS BUILDING MAINTENANCE ( FY 18/19 497.49 Janitorial Ops Bldg) 214497 4/11/2019 [1294] MORTON SALT INC ( Invoices 5401815965, 26,453.81 5401816725, 5401816726, 5401816727, 5401817576, 5401818791, 5401818792, 5401819598, 5401819600) 214498 4/11/2019 [1500] NAPA AUTO PARTS ( Vehicle Supplies) 3,274.12 214499 4/11/2019 [1344] PUMP CHECK ( Pump Efficiency Testing) 7,360.00 214500 4/11/2019 [1706] QUILL CORPORATION ( FY 18/19 Office Supplies - 133.48 Admin) 214501 4/11/2019 [1548] R A BATCHELOR CO ( Annual Inspection/Certification) 1,050.00

214502 4/11/2019 [1373] REFRIGERATION SUPPLIES DISTRIBUTOR (RSD) ( 158.53 Circuit Board - VFD Room - CI) 214503 4/11/2019 [1401] SOUTHWEST ALARM SERVICE ( Invoices 066132, 2,594.00 066133, 066205-I, 066205-II) 214504 4/11/2019 [1663] SS HERT TRUCKING INC ( FY 18/19 Freight for Pellet 442.42 DIsposal and Seed Delivery) 214505 4/11/2019 [1416] STRADLING YOCCA CARLSON & RAUTH ( General and 5,526.18 Chino Airport Plume - Jan 19) 214506 4/11/2019 [1708] UNITED PUMPING SERVICES INC ( Invoices 6,821.04 INV157646, INV157648) 214507 4/22/2019 [1678] ACWA JPIA ( Medical Coverage - May 19 Member#: 3,497.82 000845) 214508 4/22/2019 [1735] ARAMARK UNIFORM AND CAREER APPAREL GROUP 209.55 INC/AUS WEST LOCKBOX ( FY 18/19 Rubber mats, first aid supplies) 214509 4/22/2019 [1095] CHARLES P CROWLEY CO ( Pump Parts) 8,226.77 214510 4/22/2019 [1127] CONSOLIDATED ELECTRICAL DISTRIBUTOR - CORONA 30,761.35 ( Chino II Electrical Survey Project) 214511 4/22/2019 [1752] DESIGN WEST ENGINEERING INC ( Electrical Design 150.00 Services) 214512 4/22/2019 [1763] ETAIROS CORP. DBA WESTERN DATA ( IT Managed 400.00 Services) 214513 4/22/2019 [1184] FEDERAL EXPRESS CORP ( FY 18/19 Express Shipping) 130.38

214514 4/22/2019 [1190] FIREMASTER ( Invoices 0000635456, 0000635469) 1,100.00 214515 4/22/2019 [1700] FP MAILING SOLUTIONS DBA FRANCOTYP-POSTALIA, 141.69 INC. ( Postbase Injet Cartridge)

2 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214516 4/22/2019 [1138] GHOSSAIN & TRUELOCK ENTERPRISES INC dba 500.00 CUSTOM SERVICE SYSTEMS ( FY 18/19 Janitorial Svc - CII) 214517 4/22/2019 [1212] HACH COMPANY ( Invoices 11405309, 11408918) 812.80 214518 4/22/2019 [1229] ICMA RETIREMENT TRUST ( FY 18/19 Annual Plan 250.00 Fee) 214519 4/22/2019 [1294] MORTON SALT INC ( Invoices 5401820456, 35,189.22 5401821151, 5401821153, 5401822816, 5401823526, 5401823528, 5401825362, 5401826137, 5401826138, 5401826972, 5401827844, 5401827846) 214520 6/21/2019 [1500] NAPA AUTO PARTS ( Void check 0214520) (410.16) 0214520[VOID] 4/22/2019 [1500] NAPA AUTO PARTS ( General Supplies) 410.16 214521 4/22/2019 [1706] QUILL CORPORATION ( FY 18/19 Office Supplies - 168.08 Admin) 214522 4/22/2019 [1391] SEPARATION PROCESSES INC ( FY 18/19 - On Call 6,644.80 Technical Support Services CI & CII) 214523 4/22/2019 [1401] SOUTHWEST ALARM SERVICE ( FY 18/19 CI Wells 300.53 Alarm Service) 214524 4/22/2019 [1416] STRADLING YOCCA CARLSON & RAUTH ( General and 8,197.19 Chino Airport Plume - Feb 19) 214525 4/22/2019 [1448] UNITED RENTALS NORTHWEST INC ( General 386.60 Supplies) 214526 4/22/2019 [1455] URIMAGE ( Business Cards - Thomas O'Neill) 31.25 214527 4/24/2019 [1735] ARAMARK UNIFORM AND CAREER APPAREL GROUP 465.84 INC/AUS WEST LOCKBOX ( Invoices 001450624429, 001450636367) 214528 4/24/2019 [1359] COUNTY OF RIVERSIDE ( Department of 1,632.00 Environmental Health Permit - Level III and Cal EPA Surcharge) 214529 4/24/2019 [1736] DXP ENTERPRISES INC ( Repair 1.750 Crane - 5610 512.40 Cartridge Seal) 214530 4/24/2019 [1763] ETAIROS CORP. DBA WESTERN DATA ( Western 2,597.23 Digital Network Attached Storage) 214531 4/24/2019 [1252] KONICA MINOLTA ( FY 18/19 Copier Lease - Admin, 604.61 CI and CII) 214532 4/24/2019 [1253] KONICA MINOLTA BUSINESS SOLUTIONS I ( FY 18/19 449.41 Copy Charges) 214533 4/24/2019 [1719] LHOIST NORTH AMERICA OF ARIZONA INC ( Invoices 25,133.03 1190208421, 1190209270, 1190209749, 1190210203)

3 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214534 4/24/2019 [1294] MORTON SALT INC ( Invoices 5401829797, 15,172.66 5401830462, 5401830464, 5401830465, 5401832259) 0214535[VOID] 4/24/2019 [1500] NAPA AUTO PARTS ( General Auto Supplies) 2.28 214535 6/21/2019 [1500] NAPA AUTO PARTS ( Void check 0214535) (2.28) 214536 4/24/2019 [1706] QUILL CORPORATION ( Invoices 6565358, 6570847, 123.82 6573550) 214537 4/24/2019 [1409] STAPLES BUSINESS ADVANTAGE ( FY 18/19 Office 7.28 Supplies) 214538 4/24/2019 [1445] ULINE ( Heavy Duty Shelving and Storage Units) 2,220.97 214539 4/24/2019 [1708] UNITED PUMPING SERVICES INC ( FY 18/19 2,592.55 Hazardous Waste Cleaning Services) 214540 5/01/2019 [1030] AMP MECHANICAL INC ( FY 18/19 AC Maintenance ) 1,237.00

214541 5/01/2019 [1044] AQUASYSTEC ( FY 18/19 SCADA Programming 7,837.50 Support) 214542 5/01/2019 [1674] ASAP INDUSTRIAL SUPPLY ( Invoices 017960, 4,622.75 018473) 214543 5/01/2019 [1660] CAMERON WELDING SUPPLIES ( FY 18/19 Propane & 92.88 Tools) 214544 5/01/2019 [1641] CANNON CORPORATION dba CANNON ( RO Train 327.46 Programming - Conduct a site visit to discuss the issues with operators -Upload a copy of your PLC code and inspect it -investigate issues) 214545 5/01/2019 [1112] CITY RENTALS INC ( Invoices 68516, 68537) 208.20 214546 5/01/2019 [1734] ERIC MICHAEL FERRERI dba KING LOCKSMITH ( 2,701.00 Invoices 7075, 7099) 214547 5/01/2019 [1759] K-VAC ENVIRONMENTAL SERVICES INC ( Removal of 4,809.00 Hazardous waste.) 214548 5/01/2019 [1250] KING LEE CHEMICAL CO ( Invoices 6760, 6766, 6788, 36,644.76 6803) 214549 5/01/2019 [1719] LHOIST NORTH AMERICA OF ARIZONA INC ( FY 18/19 6,510.26 Lime) 214550 5/01/2019 [1294] MORTON SALT INC ( Invoices 5401815038, 39,177.38 5401832260, 5401833040, 5401833856, 5401833858, 5401833859, 5401835100, 5401835744, 5401835747, 5401836527, 5401837320, 5401837321, 5401838206) 214551 5/01/2019 [1648] RELEVANT SOLUTIONS INC LLC ( 3M-RT40Y16G20PN- 2,105.96 B150091 Filters)

4 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214552 5/01/2019 [1760] RONALD LANDER dba ULTRASAFE SECURITY 5,588.00 SPECIALISTS ( CDA Burglar Alarm System ) 214553 5/01/2019 [1766] WEST COAST SAND & GRAVEL, INC. ( FY 18/19 7,122.06 Freight for Pellet Disposal & Seed Delivery) 214554 5/09/2019 [1678] ACWA JPIA ( Medical Coverage - JUN 19 Member#: 3,497.82 000845) 214555 5/09/2019 [1735] ARAMARK UNIFORM AND CAREER APPAREL GROUP 437.08 INC/AUS WEST LOCKBOX ( Invoices 001450648385, 001450660471) 214556 5/09/2019 [1623] AT&T ( Invoices 6177667400, 6187667408) 1,520.53 214557 5/09/2019 [1071] JIM W BOWMAN ( BM STIPEND 5/2/19) 150.00 214558 5/09/2019 [1458] BRIGHTVIEW LANDSCAPE SERVICES (FORMERLY 621.00 VALLEYCREST LNDSCP MAINT) ( FY 18/19 Landscape Maint)

214559 5/09/2019 [1768] FIELDMAN ROLAPP & ASSOCIATES INC dba APPLIED 2,900.00 BEST PRACTICES ( Continuing Disclosure Consulting Services FY1718) 214560 5/09/2019 [1138] GHOSSAIN & TRUELOCK ENTERPRISES INC dba 743.00 CUSTOM SERVICE SYSTEMS ( FY 18/19 Janitorial Svc - CII) 214561 5/09/2019 [1212] HACH COMPANY ( FY 18/19 Lab Equipment) 10,029.69 214562 5/09/2019 [1583] TOM HAUGHEY ( Invoices TH BM 2019 MAY, TH FC 300.00 2019 APRIL) 214563 5/09/2019 [1696] KLR TOOL INDUSTRIES ( Tools (Snap-on)) 1,724.00 214564 5/09/2019 [1719] LHOIST NORTH AMERICA OF ARIZONA INC ( Invoices 12,466.56 1190211024, 1190211827) 214565 5/09/2019 [1283] MERCHANTS BUILDING MAINTENANCE ( FY 18/19 497.49 Janitorial Ops Bldg) 214566 5/09/2019 [1294] MORTON SALT INC ( Invoices 5401837318, 8,920.91 5401838906, 5401838907) 214567 5/09/2019 [1722] NEW EARTH USA LLC ( FY 18/19 Biosolids 27,143.15 transportation and disposal) 214568 5/09/2019 [1767] TOM O'NEILL ( Photoshoot, retouch, digital files 377.12 expedited for executive pictures - requested by newspaper)

214569 5/09/2019 [1766] WEST COAST SAND & GRAVEL, INC. ( Invoices 4,500.00 115653, 115654, 117155, 117374, 119570, 123320, 124853, 127711, 127712, 127713) 214570 5/15/2019 [1733] CASTLE ELECTRIC AND BUILDERS INC dba LYDEN 7,918.13 ELECTRIC ( Remove old existing lights and install new LED fixtures in Chino Desalter 1 office areas. )

5 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214571 5/15/2019 [1190] FIREMASTER ( Annual inspection - Material, Exit and 377.13 Emer Ligt (E-Lite Inspected)) 214572 5/15/2019 [1420] SUN WIRELESS ( PTP 820 Secure Management) 441.78 214573 5/15/2019 [1770] T.E. ROBERTS INC ( 30" Valve Repair ) 10,330.00 214574 5/24/2019 [1116] GRISWOLD INDUSTRIES dba CLA- 4,566.72 VAL.SOUNDCAST.GRISWOLD CASTINGS ( Main Valve Rebuild Kit ) 214575 6/04/2019 [1044] AQUASYSTEC ( FY 18/19 SCADA Programming 2,775.00 Support) 214576 6/04/2019 [1623] AT&T ( Invoices 2407108403, 4508828401, 5,495.86 7300287403, 8151928402) 214577 6/04/2019 [1458] BRIGHTVIEW LANDSCAPE SERVICES (FORMERLY 621.00 VALLEYCREST LNDSCP MAINT) ( FY 18/19 Landscape Maint)

214578 6/04/2019 [1138] GHOSSAIN & TRUELOCK ENTERPRISES INC dba 1,234.00 CUSTOM SERVICE SYSTEMS ( FY 18/19 Janitorial Svc - CII) 214579 6/04/2019 [1509] INLAND VALLEY DAILY BULLETIN ( Annual 357.09 Subscription) 214580 6/04/2019 [1252] KONICA MINOLTA ( FY 18/19 Copier Lease - Admin, 604.61 CI and CII) 214581 6/04/2019 [1253] KONICA MINOLTA BUSINESS SOLUTIONS I ( FY 18/19 489.68 Copy Charges) 214582 6/04/2019 [1294] MORTON SALT INC ( Invoices 5401840693, 73,992.96 5401841348, 5401841349, 5401841350, 5401842143, 5401842144, 5401842145, 5401843525, 5401843526, 5401845403, 5401845405, 5401847021, 5401847022, 5401847827, 5401848858, 5401849708, 5401849709, 5401849710, 5401849711, 5401851427, 540185) 214583 6/04/2019 [1760] RONALD LANDER dba ULTRASAFE SECURITY 4,680.00 SPECIALISTS ( CDA Access Control Project) 214584 6/04/2019 [1041] SOUTH COAST AQMD ( Invoices 3447575, 3447576, 1,462.78 3447577, 3447578, 3447579, 3447580, 3447581, 3447582, 3447583, 3447584, 3447585) 214585 6/04/2019 [1401] SOUTHWEST ALARM SERVICE ( Invoices 066409, 2,594.00 066410, 066481, 066481A) 214586 6/04/2019 [1766] WEST COAST SAND & GRAVEL, INC. ( Invoices 1,350.00 129836, 129837, 132233) 214587 6/17/2019 [1030] AMP MECHANICAL INC ( Invoices 18896A, 18902A) 3,637.00 214588 6/17/2019 [1035] ANDREW BALLARD ELECTRIC ( Installation of Office 500.00 Alarm System)

6 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214589 6/17/2019 [1735] ARAMARK UNIFORM AND CAREER APPAREL GROUP 984.25 INC/AUS WEST LOCKBOX ( Invoices 001450672443, 001450684432, 001450696311, 001450708307)

214590 6/17/2019 [1623] AT&T ( Invoices 0214088404, 5588458408) 2,882.73 214591 6/17/2019 [1071] JIM W BOWMAN ( BM STIPEND 6/6/19) 150.00 214592 6/17/2019 [1641] CANNON CORPORATION dba CANNON ( RO Train 801.90 Programming - Conduct a site visit to discuss the issues with operators -Upload a copy of your PLC code and inspect it -investigate issues) 214593 6/17/2019 [1112] CITY RENTALS INC ( FY 18/19 PROPANE) 45.43 214594 6/17/2019 [1175] ENDRESS HAUSER INC ( E&H units for RO trains 7,451.06 conductivity meters.

Sole Source/Manufacture direct parts) 214595 6/17/2019 [1734] ERIC MICHAEL FERRERI dba KING LOCKSMITH ( New 4,041.00 Pamex HD Lever Locks - Storeroom SC1) 214596 6/17/2019 [1595] FRONTIER TECHNOLOGY LLC dba MICROAGE ( 5,100.00 Invoices 2055169, 4002120) 214597 6/17/2019 [1212] HACH COMPANY ( Plant Supplies) 173.09 214598 6/17/2019 [1583] TOM HAUGHEY ( Invoices TH BM 2019 JUNE, TH FC 300.00 2019 MAY) 214599 6/17/2019 [1568] JPR SYSTEMS INC ( FY18/19 Electrical Parts and 2,014.93 Power Supplies) 214600 6/17/2019 [1250] KING LEE CHEMICAL CO ( FY 18/19 Anti scalant KING 11,158.54 LEE Y2K) 214601 6/17/2019 [1719] LHOIST NORTH AMERICA OF ARIZONA INC ( Invoices 24,824.62 1190212358, 1190213530, 1190214300, 1190215176)

214602 6/17/2019 [1283] MERCHANTS BUILDING MAINTENANCE ( FY 18/19 497.49 Janitorial Ops Bldg) 214603 6/17/2019 [1294] MORTON SALT INC ( Invoices 5401854014, 20,767.08 5401854642, 5401855426, 5401856285, 5401856287, 5401857268, 5401857270) 214604 6/17/2019 [1722] NEW EARTH USA LLC ( FY 18/19 Biosolids 25,629.94 transportation and disposal) 214605 6/17/2019 [1706] QUILL CORPORATION ( Invoices 6822038, 6825553, 150.39 7070725)

7 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214606 6/17/2019 [1756] RED HAWK FIRE & SECURITY (CA) LLC (FORMERLY 564.00 DIVERSIFIED PROTECTION SYSTEMS INC) ( Inergen Fire Suppression System Annual Service) 214607 6/17/2019 [1648] RELEVANT SOLUTIONS INC LLC ( 3M-RT40Y16G20PN- 6,161.84 B150091 Filters) 214608 6/17/2019 [1375] RYAN HERCO ( DEM-FRP GRATING for Analyzer 1,504.87 Rooms ) 214609 6/17/2019 [1391] SEPARATION PROCESSES INC ( FY 18/19 - On Call 8,488.25 Technical Support Services CI & CII) 214610 6/17/2019 [1401] SOUTHWEST ALARM SERVICE ( Invoices 066709, 2,594.00 066709A, 066710, 066711) 214611 6/17/2019 [1409] STAPLES BUSINESS ADVANTAGE ( FY 18/19 Office 62.26 Supplies) 214612 6/17/2019 [1445] ULINE ( Annual Plant Parts Extension) 931.20 214613 6/17/2019 [1455] URIMAGE ( Check Sheets) 462.25 214614 6/17/2019 [1766] WEST COAST SAND & GRAVEL, INC. ( Invoices 4,050.00 115652, 123321, 132560, 133750, 134816, 135345, 137340, 138283, 139677) 214615 6/27/2019 [1678] ACWA JPIA ( Medical Coverage - Member#: 000845. 3,497.82 Jul) 214616 6/27/2019 [1030] AMP MECHANICAL INC ( FY 18/19 AC Maintenance ) 323.27

214617 6/27/2019 [1044] AQUASYSTEC ( FY 18/19 SCADA Programming 5,212.50 Support) 214618 6/27/2019 [1735] ARAMARK UNIFORM AND CAREER APPAREL GROUP 531.42 INC/AUS WEST LOCKBOX ( Invoices 001450720171, 001450732146) 214619 6/27/2019 [1674] ASAP INDUSTRIAL SUPPLY ( Invoices 019048, 510.87 019156) 214620 6/27/2019 [1503] B'S POOL SUPPLY ( FY 18/19 Liquid Chlorine Bleach) 205.27

214621 6/27/2019 [1551] CALDESAL ( Annual Membership Dues for Regular 5,000.00 Member) 214622 6/27/2019 [1175] ENDRESS HAUSER INC ( Level Sensors) 5,030.48 214623 6/27/2019 [1138] GHOSSAIN & TRUELOCK ENTERPRISES INC dba 1,234.00 CUSTOM SERVICE SYSTEMS ( FY 18/19 Janitorial Svc - CII) 214624 6/27/2019 [1212] HACH COMPANY ( Invoices 11388635, 11437221, 3,685.21 11448763, 11450386) 214625 6/27/2019 [1687] HD SUPPLY FACILITIES MAINTENANCE LTD dba 331.78 USABLUEBOOK ( FY 18/19 Plant parts)

8 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment 214626 6/27/2019 [1719] LHOIST NORTH AMERICA OF ARIZONA INC ( Invoices 6,601.64 1190215761, 1190216099) 214627 6/27/2019 [1294] MORTON SALT INC ( Invoices 5401838205, 62,487.22 5401839819, 5401840695, 5401853212, 5401859053, 5401859960, 5401859963, 5401859964, 5401860749, 5401861598, 5401861600, 5401862387, 5401863074, 5401864152, 5401864154, 5401865086, 5401865087, 5401865775, 5401866715, 5401867594, 540186) 214628 6/27/2019 [1722] NEW EARTH USA LLC ( FY 18/19 Biosolids 28,009.07 transportation and disposal) 214629 6/27/2019 [1565] PACIFIC PARTS & CONTROL, INC. ( Invoices C426673, 1,196.89 I429249) 214630 6/27/2019 [1373] REFRIGERATION SUPPLIES DISTRIBUTOR (RSD) ( Plant 20.06 Supplies) 214631 6/27/2019 [1375] RYAN HERCO ( Leak Detection system ) 4,194.55 214632 6/27/2019 [1391] SEPARATION PROCESSES INC ( FY 18/19 - On Call 2,976.50 Technical Support Services CI & CII) 214633 6/27/2019 [1663] SS HERT TRUCKING INC ( Invoices 052527, 053223) 928.80

214634 6/27/2019 [1409] STAPLES BUSINESS ADVANTAGE ( Invoices 131.06 3414796852, 3414796858, 3414796860) 214635 6/27/2019 [1652] U S HOSE ( Annual PO FY 18/19 Hose clamps and 360.97 supplies) 214636 6/27/2019 [1766] WEST COAST SAND & GRAVEL, INC. ( Invoices 2,250.00 142653, 142654, 144699, 145229, 148313) Total Checks 846,045.81

EFT 4/01/2019 [1222] HOME DEPOT CREDIT SERVICES ( EFT - Auto Pay) 233.89 EFT 4/01/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 6,543.38 EFT 4/01/2019 [1728] AMAZON.COM ( EFT - Auto Pay) 239.37 EFT 4/02/2019 [1598] RCWRF INVESTMENT INC ( EFT - Auto Pay) 3,562.81 EFT 4/08/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 253,701.75 EFT 4/08/2019 [1185] BUSINESS CARD ( EFT - Auto Pay) 580.00 EFT 4/11/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 38.82 Pay) EFT 4/11/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 56.66 Pay) EFT 4/11/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 49.97 Pay) EFT 4/11/2019 [1101] CITY OF CHINO ( EFT - Auto Pay) 907.46

9 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment EFT 4/11/2019 [1032] BETTY ANN ANDERSON ( BM STIPEND 4/4/19) 150.00 EFT 4/11/2019 [1481] BRENNTAG PACIFIC INC ( Invoices BPI926265, 104,725.97 BPI926654, BPI926882, BPI927626, BPI928854, BPI928855, BPI928873, BPI929347, BPI930257, BPI930258, BPI930400, BPI930605, BPI931154, BPI931680, BPI932812)

EFT 4/11/2019 [1206] GRAINGER INC ( Invoices 9078463099, 9085897438, 415.28 9109051418) EFT 4/11/2019 [1215] HARRINGTON INDUSTRIAL PLASTICS LLC ( Invoices 612.10 012J4412, 012J5054, 012J5055) EFT 4/11/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( Invoices 83,599.98 1600014554C, 90023848, MC BM 2019 APR, SAP0219- CDAL&B-A, SAP0219-CDAO&M-A) EFT 4/11/2019 [1281] MCMASTER-CARR SUPPLY CO ( FY18/19 Plant 226.05 Supplies) EFT 4/11/2019 [1522] GREG R NEWTON ( BM STIPEND 4/4/19) 150.00 EFT 4/11/2019 [1346] PURE PROCESS FILTRATION INC ( FY 18/19 Filters) 1,610.01 EFT 4/11/2019 [1366] PETER J ROGERS ( BM STIPEND 4/4/19) 150.00 EFT 4/11/2019 [1382] SANTA ANA RIVER WATER CO ( DIR. RODRIGUEZ 150.00 BOARD STIPEND 4/4/19) EFT 4/11/2019 [1745] SC COMMERCIAL LLC dba THE SOCO GROUP ( Chino 1,850.01 II - train motor oil) EFT 4/11/2019 [1658] SPECIALTY MINERALS INC ( Bulk Seed - Calcium 662.50 Carbonate) EFT 4/12/2019 [1222] HOME DEPOT CREDIT SERVICES ( EFT - Auto Pay) 91.98 EFT 4/12/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 11,371.62 EFT 4/12/2019 [1326] PAYCOM PAYROLL LLC ( EFT - Auto Pay) 3,124.00 EFT 4/12/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 2,166.99 EFT 4/12/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 1,000.00 EFT 4/15/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 196.19 EFT 4/15/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 16,312.34 EFT 4/15/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 4,974.44 EFT 4/19/2019 [1728] AMAZON.COM ( EFT - Auto Pay) 589.98 EFT 4/22/2019 [1222] HOME DEPOT CREDIT SERVICES ( EFT - Auto Pay) 357.92 EFT 4/22/2019 [1052] BABCOCK LABORATORIES INC ( FY 18/19 CI Lab 3,086.00 Analysis) EFT 4/22/2019 [1481] BRENNTAG PACIFIC INC ( FY 18/19 Bulk Sulfuric Acid) 5,098.85

EFT 4/22/2019 [1093] CERTIFIED AIR SERVICES INC ( Invoices 10344, 10368) 628.05

10 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment EFT 4/22/2019 [1102] CITY OF CHINO HILLS ( FY 18/19 Pump Station Maint) 766.61

EFT 4/22/2019 [1132] CASEY COSTA ( Reimbursement) 124.00 EFT 4/22/2019 [1199] GENERAL PUMP COMPANY INC ( Invoices 26996, 77,847.74 26998, 27014) EFT 4/22/2019 [1544] GOODWEST LININGS & COATINGS ( Field Service - 6,026.43 Vessel NRV-4 Repair) EFT 4/22/2019 [1206] GRAINGER INC ( Invoices 9130781801, 9133676719, 519.74 9136624260) EFT 4/22/2019 [1215] HARRINGTON INDUSTRIAL PLASTICS LLC ( Invoices 5,105.08 012J5356, 012J5396) EFT 4/22/2019 [1281] MCMASTER-CARR SUPPLY CO ( Invoices 90898672, 482.00 91716319) EFT 4/22/2019 [1346] PURE PROCESS FILTRATION INC ( FY 18/19 Filters) 9,480.11 EFT 4/22/2019 [1346] PURE PROCESS FILTRATION INC ( FY 18/19 Filters) 190.21 EFT 4/22/2019 [1621] WESTERN WATER WORKS SUPPLY CO INC ( General 234.93 Supplies) EFT 4/22/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 134,699.53 EFT 4/24/2019 [1017] ALBERT A WEBB ASSOCIATES ( Preliminary 2,331.60 Engineering - Hamner Bridge CDA Waterline Relocation) EFT 4/24/2019 [1481] BRENNTAG PACIFIC INC ( Invoices BPI933454, 47,820.59 BPI934327, BPI934880, BPI936051, BPI937110, BPI937111, BPI937114) EFT 4/24/2019 [1093] CERTIFIED AIR SERVICES INC ( Invoices 10375, 10376, 931.19 10389) EFT 4/24/2019 [1114] CITY OF ONTARIO ( Invoices 74733, 74771) 36,063.72 EFT 4/24/2019 [1206] GRAINGER INC ( Invoices 9136624278, 9143468263) 107.14

EFT 4/24/2019 [1240] JOHN CRANE INC ( CRF - Seal Assembly, Cartridge) 1,202.53 EFT 4/24/2019 [1328] PEST OPTIONS INC ( Invoices 323599, 323644, 673.00 323680) EFT 4/24/2019 [1346] PURE PROCESS FILTRATION INC ( FY 18/19 Filters) 1,578.06 EFT 4/24/2019 [1600] SUPERIOR SWEEPING LTD ( FY 18/19 Sweeping 6905 285.00 Kimball Ave) EFT 4/25/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 662.67 Pay) EFT 4/25/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 29.00 Pay) EFT 4/25/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 64.79 Pay)

11 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment EFT 4/25/2019 [1326] PAYCOM PAYROLL LLC ( EFT - Auto Pay) 3,888.07 EFT 4/25/2019 [1767] TOM O'NEILL ( EFT - Auto Pay) 100.00 EFT 4/26/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 3,495.72 EFT 4/26/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 1,250.00 EFT 4/29/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 6,500.44 EFT 4/29/2019 [1466] WASTE MANAGEMENT OF THE INLAND EMPIRE ( EFT 419.40 - Auto Pay) EFT 4/30/2019 [1728] AMAZON.COM ( EFT - Auto Pay) 869.16 EFT 5/01/2019 [1598] RCWRF INVESTMENT INC ( EFT - Auto Pay ) 3,562.81 EFT 5/01/2019 [1049] AVISTA TECHNOLOGIES ( FY 18/19 Anti Scalant) 11,064.74 EFT 5/01/2019 [1052] BABCOCK LABORATORIES INC ( FY 18/19 CII Lab 20,575.60 Analysis) EFT 5/01/2019 [1207] GRAYBAR ELECTRIC CO ( Invoices 9309620202, 931.63 9309716614) EFT 5/01/2019 [1215] HARRINGTON INDUSTRIAL PLASTICS LLC ( Invoices 507.03 012J5271, 012J5843, 012J5844) EFT 5/01/2019 [1281] MCMASTER-CARR SUPPLY CO ( FY 18/19 Parts 156.47 ) EFT 5/01/2019 [1441] US BANK ( Custodian & Incidental Exp 1,925.00 (Trust Acct# Ending 1001) 03/01/2019 to 02/29/2020. ) EFT 5/02/2019 [1461] FRONTIER CALIFORNIA INC. (FORMERLY VERIZON 1,229.45 CALIF) ( EFT - Auto Pay) EFT 5/06/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 254,902.10 EFT 5/08/2019 [1185] BUSINESS CARD ( EFT - Auto Pay) 890.21 EFT 5/09/2019 [1215] HARRINGTON INDUSTRIAL PLASTICS LLC ( FY 18/19 180.06 Valves / PVC Parts / Pipe (Various Parts)) EFT 5/09/2019 [1658] SPECIALTY MINERALS INC ( Bulk Seed - Calcium 681.25 Carbonate) EFT 5/09/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 38.82 Pay) EFT 5/09/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 58.89 Pay) EFT 5/09/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 47.74 Pay) EFT 5/09/2019 [1326] PAYCOM PAYROLL LLC ( EFT - Auto Pay) 6,266.55 EFT 5/09/2019 [1032] BETTY ANN ANDERSON ( Invoices BA BM 2019 MAY, 300.00 BA FC 2019 APRIL) EFT 5/09/2019 [1481] BRENNTAG PACIFIC INC ( Invoices BPI938526, 50,065.44 BPI938750, BPI939232, BPI940314, BPI940316, BPI940317, BPI940318)

12 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment EFT 5/09/2019 [1132] CASEY COSTA ( Reimbursement) 110.14 EFT 5/09/2019 [1206] GRAINGER INC ( FY18/19 Supplies/Parts) 110.50 EFT 5/09/2019 [1207] GRAYBAR ELECTRIC CO ( FY 18/19 Parts/Supplies) 4,288.46 EFT 5/09/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( BOARD STIPEND 150.00 5/2/19 DIRECTOR CAMACHO) EFT 5/09/2019 [1510] TODD MINTEN ( Mileage Reimbursement 9/4/18 - 717.39 4/1/19) EFT 5/09/2019 [1522] GREG R NEWTON ( BM STIPEND 5/2/19) 150.00 EFT 5/09/2019 [1366] PETER J ROGERS ( Invoices PR BM 2019 MAY, PR FC 300.00 2019 APRIL) EFT 5/09/2019 [1382] SANTA ANA RIVER WATER CO ( DIRECTOR 150.00 RODRIGUEZ BOARD MEETING STIPEND 5/2/19) EFT 5/10/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 3,427.18 EFT 5/10/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 2,250.00 EFT 5/14/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( 2,031,282.00 Reconciliation of Allocated Costs FY17/18) EFT 5/14/2019 [1473] WESTERN MUNICIPAL WATER DISTRICT ( 8,523.00 Reconciliation of Allocated Costs FY17/18) EFT 5/14/2019 [1114] CITY OF ONTARIO ( Reconciliation of Allocated Costs 1,885,667.00 FY17/18) EFT 5/15/2019 [1114] CITY OF ONTARIO ( Reimbursement for Tom O'Neill 18,756.18 serving as Interim General Manager for CDA) EFT 5/15/2019 [1199] GENERAL PUMP COMPANY INC ( Invoices 27053, 32,316.77 27057, 27110) EFT 5/15/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( Lab Analysis 2,611.20 Fees - Mar 2019) EFT 5/15/2019 [1767] TOM O'NEILL ( Health Reimbursement May 19) 567.99 EFT 5/16/2019 [1101] CITY OF CHINO ( EFT - Auto Pay) 932.48 EFT 5/17/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 41,676.49 EFT 5/17/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 204.16 EFT 5/17/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 5,008.02 EFT 5/17/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 7,748.79 EFT 5/20/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 160,426.12 EFT 5/23/2019 [1326] PAYCOM PAYROLL LLC ( EFT - Auto Pay) 5,690.03 EFT 5/23/2019 [1441] US BANK ( PMT Bond Interest and Principal Pmt 3,683,290.00 2016A) EFT 5/24/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 654.66 Pay) EFT 5/24/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 64.79 Pay)

13 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment EFT 5/24/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 29.00 Pay) EFT 5/24/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 1,812.50 EFT 5/24/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 3,427.18 EFT 5/24/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 295.63 EFT 5/28/2019 [1767] TOM O'NEILL ( EFT - Auto Pay) 100.00 EFT 5/30/2019 [1461] FRONTIER CALIFORNIA INC. (FORMERLY VERIZON 1,229.45 CALIF) ( EFT - Auto Pay) EFT 5/31/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 6,301.41 EFT 6/03/2019 [1466] WASTE MANAGEMENT OF THE INLAND EMPIRE ( EFT 209.70 - Auto Pay) EFT 6/04/2019 [1093] CERTIFIED AIR SERVICES INC ( Invoices 10422, 10430, 2,923.61 10445, 10448, 10454) EFT 6/04/2019 [1481] BRENNTAG PACIFIC INC ( Invoices BPI935625, 78,030.80 BPI936303, BPI936466, BPI937112, BPI937113, BPI938089, BPI938749, BPI939522, BPI940292, BPI940315, BPI943618, BPI944099, BPI945621) EFT 6/04/2019 [1049] AVISTA TECHNOLOGIES ( 8" Membrane Cleaning) 4,595.00 EFT 6/04/2019 [1600] SUPERIOR SWEEPING LTD ( FY 18/19 Sweeping 6905 285.00 Kimball Ave) EFT 6/04/2019 [1328] PEST OPTIONS INC ( Invoices 321052, 325735, 385.00 325771) EFT 6/04/2019 [1767] TOM O'NEILL ( Invoices Health Rmb 05 19 Adj, Health 2,577.03 Rmb 06 19, Reimb-052819) EFT 6/04/2019 [1481] BRENNTAG PACIFIC INC ( Invoices BPI935624, 18,000.45 BPI938664, BPI943619, BPI946182) EFT 6/04/2019 [1102] CITY OF CHINO HILLS ( FY 18/19 Pump Station Maint) 766.61

EFT 6/04/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 232,247.54 EFT 6/04/2019 [1505] ACCUFUND INC ( Quarterly Hosted Services - 0719 - 4,596.00 0919) EFT 6/04/2019 [1052] BABCOCK LABORATORIES INC ( FY 18/19 CI Lab 5,799.00 Analysis) EFT 6/05/2019 [1598] RCWRF INVESTMENT INC ( EFT - Auto Pay) 3,562.81 EFT 6/06/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 38.82 Pay) EFT 6/06/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 38.82 Pay) EFT 6/06/2019 [1326] PAYCOM PAYROLL LLC ( EFT - Auto Pay) 5,732.86

14 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment EFT 6/06/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 61.12 Pay) EFT 6/07/2019 [1222] HOME DEPOT CREDIT SERVICES ( EFT - Auto Pay) 261.52 EFT 6/07/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 3,842.77 EFT 6/07/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 2,312.50 EFT 6/07/2019 [1185] BUSINESS CARD ( EFT - Auto Pay) 52.34 EFT 6/10/2019 [1441] US BANK ( EFT - Auto Pay) 1,385.20 EFT 6/11/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 9,119.06 EFT 6/11/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( Invoices 215,675.53 1600014665 M, 1600014701 M, SAP0319-CDAL&B-A, SAP0319-CDAO&M-A, SAP0419-CDAL&B-A, SAP0419- CDAO&M-A) EFT 6/11/2019 [1383] SANTA ANA WATERSHED PROJECT AUTHORITY ( 502,788.29 Invoices 9470, 9471, 9489, 9490, 9506, 9507, 9512) EFT 6/13/2019 [1101] CITY OF CHINO ( EFT - Auto Pay) 865.76 EFT 6/17/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 24,344.25 EFT 6/17/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 218.20 EFT 6/17/2019 [1017] ALBERT A WEBB ASSOCIATES ( Preliminary 6,737.00 Engineering - April 2019) EFT 6/17/2019 [1032] BETTY ANN ANDERSON ( Invoices BA BM 2019 JUNE, 300.00 BA FC 2019 MAY) EFT 6/17/2019 [1052] BABCOCK LABORATORIES INC ( CII Lab Analysis - Apr 6,860.90 19) EFT 6/17/2019 [1481] BRENNTAG PACIFIC INC ( Invoices BPI939954, 131,319.59 BPI941637, BPI942638, BPI942639, BPI942969, BPI943854, BPI943855, BPI944414, BPI944792, BPI945642, BPI946465, BPI946852, BPI947646, BPI948917, BPI948918, BPI949261, BPI949334, BPI949563, BPI949588, BPI950074, BPI950075)

EFT 6/17/2019 [1093] CERTIFIED AIR SERVICES INC ( Invoices 10465, 10478, 3,097.56 10481) EFT 6/17/2019 [1102] CITY OF CHINO HILLS ( FY 18/19 Pump Station Maint) 766.61

EFT 6/17/2019 [1199] GENERAL PUMP COMPANY INC ( Invoices 26957, 47,277.94 27098, 27098CR, 27113, 27116) EFT 6/17/2019 [1206] GRAINGER INC ( Invoices 9155311146, 9170701024, 765.98 9186119807) EFT 6/17/2019 [1207] GRAYBAR ELECTRIC CO ( Plant Supplies) 793.80 EFT 6/17/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 4,841.21

15 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment EFT 6/17/2019 [1215] HARRINGTON INDUSTRIAL PLASTICS LLC ( Invoices 1,477.76 012J5667, 012J5740, 012J5805, 012J5806, 012J5842, 012J5884, 012J5885, 012J5886, 012J5946, 012J6014, 012J6109, 012J6339, 012J6448) EFT 6/17/2019 [1281] MCMASTER-CARR SUPPLY CO ( Invoices 94612528, 1,099.36 94906085, 95752406, 95814857, 95999060, 96131862)

EFT 6/17/2019 [1522] GREG R NEWTON ( BM STIPEND 6/6/19) 150.00 EFT 6/17/2019 [1346] PURE PROCESS FILTRATION INC ( FY 18/19 Filters) 1,635.79 EFT 6/17/2019 [1366] PETER J ROGERS ( Invoices PR BM 2019 JUNE, PR FC 300.00 2019 MAY) EFT 6/17/2019 [1382] SANTA ANA RIVER WATER CO ( RODRIGUEZ BOARD 150.00 STIPEND 6/6/19) EFT 6/17/2019 [1233] SCHNEIDER ELECTRIC SYSTEMS INC (FORMERLY 7,009.26 INVENSYS SYSTEMS INC) ( Flowmeter for CRF) EFT 6/17/2019 [1708] UNITED PUMPING SERVICES INC ( Invoices 69,995.24 INV157702, INV157756, INV157757, INV157868, INV157904, INV158776, INV159091, INV159140, INV159267)

EFT 6/17/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( Invoices 4,089.70 90024194, MC BM 2019 JUNE) EFT 6/21/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 2,562.50 EFT 6/21/2019 [1229] ICMA RETIREMENT TRUST ( EFT - Auto Pay) 3,722.81 EFT 6/21/2019 [1326] PAYCOM PAYROLL LLC ( EFT - Auto Pay) 4,120.49 EFT 6/21/2019 [1700] FP MAILING SOLUTIONS DBA FRANCOTYP-POSTALIA, 200.00 INC. ( EFT - Auto Pay) EFT 6/21/2019 [1168] SOUTHERN CALIFORNIA EDISON ( EFT - Auto Pay) 34,247.09 EFT 6/24/2019 [1500] NAPA AUTO PARTS ( EFT - Auto Pay) 1,505.51 EFT 6/26/2019 [1767] TOM O'NEILL ( EFT - Auto Pay) 100.00 EFT 6/27/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 654.95 Pay) EFT 6/27/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 64.79 Pay) EFT 6/27/2019 [1245] JURUPA COMMUNITY SERVICES DISTRICT ( EFT - Auto 29.00 Pay) EFT 6/27/2019 [1017] ALBERT A WEBB ASSOCIATES ( Preliminary 13,377.00 Engineering - May 2019) EFT 6/27/2019 [1633] AMERICAN WATER CHEMICALS INC ( CRF CIP 8,533.01 Chemicals)

16 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment EFT 6/27/2019 [1052] BABCOCK LABORATORIES INC ( Invoices CI 05.19, CII 12,741.50 05.19) EFT 6/27/2019 [1481] BRENNTAG PACIFIC INC ( Invoices BPI941638, 80,840.59 BPI943474, BPI950893, BPI951999, BPI952000, BPI952172, BPI952522, BPI953404, BPI953405, BPI953406, BPI953548, BPI953563, BPI954033, BPI955798)

EFT 6/27/2019 [1093] CERTIFIED AIR SERVICES INC ( FY 18/19 Plant and 166.25 Well Field A/C Preventative Maintenance) EFT 6/27/2019 [1114] CITY OF ONTARIO ( Reimbursement for Tom O'Neill 8,158.18 serving as Interim General Manager for CDA) EFT 6/27/2019 [1199] GENERAL PUMP COMPANY INC ( CII Water Well 510.00 Rehab and Repair) EFT 6/27/2019 [1206] GRAINGER INC ( FY18/19 Supplies/Parts) 296.87 EFT 6/27/2019 [1215] HARRINGTON INDUSTRIAL PLASTICS LLC ( Invoices 418.67 012J5770, 012J6592, 012J6813) EFT 6/27/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( Invoices 147,877.63 1600014779, 1800004323, 1800004379, SAP0519-CDAL&B- A, SAP0519-CDAO&M-A) EFT 6/27/2019 [1281] MCMASTER-CARR SUPPLY CO ( Invoices 96994642, 652.28 97005851) EFT 6/27/2019 [1328] PEST OPTIONS INC ( Invoices 325668, 327649, 1,131.00 327690, 327724) EFT 6/27/2019 [1346] PURE PROCESS FILTRATION INC ( FY 18/19 Filters) 167.44 EFT 6/27/2019 [1346] PURE PROCESS FILTRATION INC ( FY 18/19 Filters) 1,623.96 EFT 6/27/2019 [1371] ROTORK CONTROLS INC ( Pakscan Diagnosis - Labor 3,612.73 and Maintenance on main board for CDA I) EFT 6/27/2019 [1658] SPECIALTY MINERALS INC ( Bulk Seed - Calcium 682.50 Carbonate) EFT 6/27/2019 [1600] SUPERIOR SWEEPING LTD ( FY 18/19 Sweeping 6905 285.00 Kimball Ave) EFT 6/27/2019 [1708] UNITED PUMPING SERVICES INC ( FY 18/19 2,085.60 Hazardous Waste Cleaning Services (For past expenses. Board approved 06/06/2019)) EFT 6/28/2019 [1222] HOME DEPOT CREDIT SERVICES ( EFT - Auto Pay) 212.92 Total EFTs 10,856,578.70

Total 11,702,624.51

17 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Main Account

Check Date Vendor/Description Payment

Total Checks 846,045.81 Total EFTs 10,856,578.70

18 of 18 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Expansion Account

Check Date Vendor/Description Payment 1433 4/04/2019 [1689] HAZEN AND SAWYER ( CDA Ph 3 Expansion 14,318.03 Program Mgmt 20092-00 - Feb 19) 1434 4/04/2019 [1741] HELIX ENVIRONMENTAL PLANNING ( Orange 3,200.00 Construction Fence installation for CDA Ph3. ) 1435 4/04/2019 [1751] HILLWIG GOODROW ( HDD Crossing 360.00 Construction Survey - Feb 19) 1436 4/22/2019 [1746] DDH APPLE VALLEY CONSTRUCTION INC dba 235,774.31 APPLE VALLEY CONSTRUCTION INC ( Santa Ana River HDD Crossing PE#5) 1437 5/02/2019 [1689] HAZEN AND SAWYER ( CDA Ph 3 Expansion 23,259.51 Program Mgmt 20092-00 - Mar 19) 1438 5/02/2019 [1751] HILLWIG GOODROW ( HDD Crossing 500.00 Construction Survey - Mar 19) 1439 5/02/2019 [1318] PACIFIC WESTERN BANK ( ESCROW 10,331.01 #1001339488 - Well Equipping - Well II-10, II-11, PE #16 Retention (Cora Const) APR18) 1440 5/02/2019 [1416] STRADLING YOCCA CARLSON & RAUTH ( Invoices 1,218.75 348980-0000 E, 351632-0000 E, 352687-0000 E)

1441 6/27/2019 [1746] DDH APPLE VALLEY CONSTRUCTION INC dba 7,866.00 APPLE VALLEY CONSTRUCTION INC ( Santa Ana River HDD Crossing PE#6) 1442 6/27/2019 [1204] GOLDEN STATE LABOR COMPLIANCE LLC ( Labor 5,894.00 Compliance SAR HDD Crossing) 1443 6/27/2019 [1741] HELIX ENVIRONMENTAL PLANNING ( Phase 3: 47,100.89 Biological Consulting Services - HDD River Crossing) Total Checks 349,822.50

EFT 4/04/2019 [1248] KENNEDY/JENKS CONSULTANTS INC ( Grant 1,535.00 Support Srvcs - Feb 19) EFT 5/02/2019 [1017] ALBERT A WEBB ASSOCIATES ( Invoices 191166, 3,671.30 191169) EFT 5/02/2019 [1519] CORA CONSTRUCTORS INC ( Well Equipping - 196,289.15 Well II-10, II-11, PE #16 (Retention: Pacific Western) Mar 18) EFT 5/02/2019 [1160] DUDEK & ASSOCIATES INC ( Design/CM of HDD 64,423.18 Pipelines - Feb 19) EFT 5/02/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( Invoices 4,365.89 1600014480E, SAP0119-CDAL&B-B, SAP0219-CDAL&B- B, SAP0918-CDAO&M-A PLUME (1))

1 of 2 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Expansion Account

Check Date Vendor/Description Payment EFT 5/02/2019 [1248] KENNEDY/JENKS CONSULTANTS INC ( Grant 2,497.50 Support Srvcs - Mar 19) EFT 6/11/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( Invoices 3,084.47 1600014665 E, 1600014701 E, SAP0319-CDAL&B-B, SAP0419-CDAL&B-B) EFT 6/27/2019 [1160] DUDEK & ASSOCIATES INC ( Invoices 20190987, 60,812.22 20192832) EFT 6/27/2019 [1484] INLAND EMPIRE UTILITIES AGENCY ( Invoices 3,247.96 1600014779E, SAP0519-CDAL&B-B) EFT 6/27/2019 [1248] KENNEDY/JENKS CONSULTANTS INC ( Grant 282.50 Support Srvcs - Apr 19) Total EFTs 340,209.17

Total 690,031.67

Total Checks 349,822.50 Total EFTs 340,209.17

2 of 2 Chino Basin Desalter Authority Check Register for 04/01/2019 to 06/30/2019

CBB Plume Account

Check Date Vendor/Description Payment 3029 4/04/2019 [1486] CIVILTECH ( Decarbonators Design - Feb 19) 15,402.80 3030 4/04/2019 [1689] HAZEN AND SAWYER ( CDA South Archibald 19,607.21 Plume Proj Program Mgmt - Feb 19) 3031 4/22/2019 [1765] FIRST AMERICAN TITLE INSURANCE COMPANY ( 750.00 Search and Exam) 3032 5/02/2019 [1486] CIVILTECH ( Invoices 40245 Partial, 40412) 17,897.93 3033 5/02/2019 [1689] HAZEN AND SAWYER ( CDA South Archibald 10,410.00 Plume Proj Program Mgmt - Mar 19) 3034 5/02/2019 [1416] STRADLING YOCCA CARLSON & RAUTH ( Invoices 7,456.50 351632-0000 S, 352687-0000 S) 3035 6/27/2019 [1486] CIVILTECH ( Decarbonators Design - Apr 19) 2,672.50 Total Checks 74,196.94

EFT 4/04/2019 [1017] ALBERT A WEBB ASSOCIATES ( Invoices 190286, 102,441.81 190771) EFT 4/04/2019 [1160] DUDEK & ASSOCIATES INC ( Invoices 20187895, 11,314.40 20190736, 20191224) EFT 5/02/2019 [1017] ALBERT A WEBB ASSOCIATES ( Plume Pipeline 40,147.19 Design Construction Support - Mar 19) EFT 5/02/2019 [1160] DUDEK & ASSOCIATES INC ( Well II-12 1,040.00 Hydrogeological Evaluation) EFT 5/02/2019 [1201] GEOSCIENCE SUPPORT SERVICES INC ( Well 1,055.00 Monitoring - Mar 19) EFT 6/27/2019 [1017] ALBERT A WEBB ASSOCIATES ( Plume Pipeline 20,401.51 Design Construction Support - Apr 19) EFT 6/27/2019 [1201] GEOSCIENCE SUPPORT SERVICES INC ( Well 9,434.25 Monitoring - Apr 19) Total EFTs 185,834.16

Total 260,031.1

Total Checks 74,196.94 Total EFTs 185,834.16

1 of 1 PAYROLL SUMMARY

Gross Payroll Total Number of Payroll Date Deductions Net Payroll Costs Deposits

04/12/2019 $ 17,954.68 $ 4,471.90 $ 13,482.78 5 04/26/2019 $ 21,036.59 $ 5,283.07 $ 15,753.52 6 05/10/2019 $ 26,040.64 $ 8,619.86 $ 17,420.78 6 05/24/2019 $ 23,867.11 $ 8,020.35 $ 15,846.76 5 06/07/2019 $ 26,530.32 $ 9,079.69 $ 17,450.63 6 06/21/2019 $ 21,825.58 $ 7,230.53 $ 14,595.05 5

$ 137,254.92 $ 42,705.40 $ 94,549.52

Board of Directors Meeting

Agenda Item No. 4

Agenda Report September 26, 2019 SECTION: CONSENT ITEM

SUBJECT: INVESTMENT REPORT

RECOMMENDATION:

Staff recommends that the Board review the Investment Report for the period April 1, 2019 to June 30, 2019.

BACKGROUND:

There was one investment for the stated period.

1. The Authority invested $250,000 on June 28, 2019, in one Negotiable Certificates of Deposit with investments terms of 5 years and yield of 2.3%.

This item was reviewed and approved by the Finance Committee on September 29, 2019.

IMPACT ON BUDGET:

The Authority’s total reserve will increase with interest earned on these investments.

Prepared by: Michael C. Chung, CDA Treasurer Page 1 of 1

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

Board of Directors Meeting

Agenda Item No. 5

ROGERS, ANDERSON, MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948

September 12, 2019 7 35 E. Carneg ie D r . Suite I 00 San Bernardino, CA 92408 909 889 087 1 T 909 889 5361 F To the Board of Directors and Management ramscpa. net Chino Basin Desalter Authority 2151 S. Haven Avenue, Suite 202 PARTNERS Ontario, California 91761 Brenda L. Odle, CPA, MST Terry P. Shea, CPA Scott W. Manno, CPA, CGMA This letter is provided in connection with our engagement to audit the financial Leena Shanbhag, CPA, MST, CGMA statements of the Chino Basin Desalter Authority (the Authority) as of and for the Bradferd A. Welebir, CPA. MBA, CGMA year ended June 30, 2019. Professional standards require that we communicate Jay H. Zercher, CPA (Partner Emeritus) with you certain items including our responsibilities with regard to the financial Phillip H. Waller, CPA (Partner Emeritus) statement audit and the planned scope and timing of our audit. Kirk A. Franks, CPA (Partner Emeritus) Our Responsibilities DIRECTORS Jenny Liu, CPA, MST As stated in our engagement letter dated August 23, 2019, we are responsible for MANAGERS I STAFF conducting our audit in accordance with auditing standards generally accepted in Charles De Simoni, CPA the United States of America and in accordance with Government Auditing Gardenya Duran, CPA Standards, for the purpose of forming and expressing an opinion(s) about whether Brianna Schultz, CPA the financial statements that have been prepared by management, with your Jingjie Wu, CPA oversight, are prepared, in all material respects, in accordance with accounting Evelyn Morentin-Barcena, CPA principles generally accepted in the United States of America. Our audit does not Jin Gu, CPA, MT relieve you or management of your respective responsibilities. Veronica Hernandez, CPA Tara R. Thorp, CPA, MSA Our responsibility as it relates to the supplementary information, is to evaluate its Laura Arvizu, CPA presentation for the purpose of forming and expressing an opinion as to whether the information is fairly stated in all material respects in relation to the financial statements as a whole.

Our responsibility for the required supplementary information included in the document containing the audited financial statements and our report thereon includes only the information identified in our report. We have no responsibility for determining whether the required supplementary information is properly stated.

Planned Scope of the Audit

Our audit will include examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our a1,1dit will involve MEMBERS judgment about the number of transactions to be examined and the areas to be American Institute of Certified Public Accountants tested. Our audit is designed to provide reasonable, but not absolute, assurance about whether the financial statements as a whole are free of material PCPS The A/CPA Alliance misstatement, whether due to error, fraudulent financial reporting, for CPA Firms misappropriation of assets, or violations of laws or governmental regulations. Governmental Audit Because of this concept of reasonable assurance and because we will not examine Quality Center all transactions, there is a risk that material misstatements may exist and not be Employee Benefit Plan detected by us. Audit Quality Center

California Society of Certified Public Accountants

STABILITY. ACCURACY. TRUST. Board of Directors and Management September 12, 2019 Chino Basin Desalter Authority

Our audit will include obtaining an understanding of the Authority and its environment, including its internal control, sufficient to assess the risks of material misstatement of the financial statements and as a basis for designing the nature, timing, and extent of further audit procedures. Our audit is not designed to express an opinion or provide assurance on internal control over financial reporting. However, we will communicate to you at the conclusion of our audit, significant matters that are relevant to your responsibilities in overseeing the financial reporting process, including any material weaknesses, significant deficiencies, and violation of laws or regulations that come to our attention.

We expect to begin our audit on approximately November 4, 2019. Scott Manno, CPA, CGMA is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it.

This information is intended solely for the information and use of the Board of Directors and management of the Authority and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully,

ROGERS, ANDERSON, MALODY & SCOTT, LLP ~L_ Scott Manno, CPA, CGMA Partner

2

Board of Directors Meeting

Agenda Item No. 6

Agenda Report September 26, 2019 SECTION: ACTION ITEM

SUBJECT: PROFESSIONAL SERVICES AGREEMENT FOR THE CHINO I SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SYSTEM PROGRAMMING SUPPORT SERVICES RECOMMENDATION: Staff recommends that the Board: 1. Approve a Professional Services Agreement with Cannon Corporation, in the not-to-exceed amount of $150,000 for Chino I Supervisory Control and Data Acquisition system programming support services for FY 2019/20; and 2. Authorize the General Manager/CEO to finalize and execute the agreement and approve up to $150,000 in authorized expenditures and extend the contract for up to four additional one-year periods consistent with the CDA Board approved budget.

BACKGROUND: The Chino I desalter utilizes a Supervisory Control and Data Acquisition (SCADA) computer system to monitor and control the Chino I Desalter, Chino I groundwater wells (19), and one (1) flow control turnout. The Chino I facilities are equipped with Schneider Electric Modicon equipment and utilizes WonderWare HMI software. The agreement encompasses on-call programming services including: • Emergency and non-emergency SCADA support services. • PLC troubleshooting, diagnosing, repair, and programming. • HMI and SCADA troubleshooting, diagnosing, programming and configuration. • Installation of necessary support software and patches for HMI, PLC, and software. • SCADA alarm troubleshooting, diagnosing, repair, and programming. • Field equipment calibration. • Communications troubleshooting, repair, and reporting.

A competitive Request for Proposal (RFP) was issued via PlanetBids from August 12, 2019 to August 30, 2019 requesting proposals from qualified firms for SCADA Programming and Maintenance Services at the Chino I Desalter for fiscal year 2019/20, with the option to extend the agreement for up to four additional one-year periods. Notifications were sent to 22 firms, 13 potential bidders registered to download bid documents and specifications, and proposals were received from 3 firms, KDC Systems, Enterprise Automation and Cannon. The three firms were evaluated based on hourly rates of staff, qualifications and experience of the firm, and responsiveness to the RFP. Cannon Corporation has a history of providing work at the Chino I

Prepared by: Thomas O’Neill CDA General Manager/CEO Page 1 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

Desalter, successfully completed RO #5 integration and provided troubleshooting and modifications to upgraded M580 PLCs, and proposed competitive hourly rates. Cannon Corporation was determined to be the responsible firm whose proposal is most advantageous to the program. All work under this contract will be based on an hourly rate, on an as-needed basis with specific tasks assigned and authorized by the CDA. This item has been reviewed/approved by Technical Advisory Committee (TAC) on 09/10/2019 and the Finance Committee on 09/19/2019.

IMPACT ON BUDGET: The approved FY 2019/20 budget includes $150,000 for these CI SCADA Services.

ATTACHMENT Bid Schedules

Prepared by: Thomas O’Neill, CDA General Manager/CEO Page 2 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

Board of Directors Meeting

Agenda Item No. 7

Agenda Report September 26, 2019 SECTION: Action Item

SUBJECT: PURCHASE OF REVERSE OSMOSIS (RO) MEMBRANES ELEMENTS

RECOMMENDATION:

Staff recommends that the Board: 1. Approve a purchase order with Dupont Water Solutions for the supply of 294 RO membrane elements in the amount of $124,950.

BACKGROUND: At the September 6, 2018 Board Meeting, the Board approved the purchase of 945 RO membrane elements from Dow Water & Process Solutions, to replace a portion of the elements at Chino I and Chino II Desalters that had reached the end of their useful life. A Request for Proposal (RFP) had been solicited at that time for unit pricing of a total of 1,246 membrane elements; 945 elements that were needed immediately, and the optional purchase of the remaining number of elements in the following year. Proposals were received from Dow Water & Process Solutions and Toray Membrane USA. Purchase of the Dow BW30XRF-400/34 membranes at a unit price of $425.00 were recommended due to lower overall purchase and operating costs.

In August 2019, Separation Process, Inc. provided an evaluation of the condition of RO membrane elements at the Chino I and Chino II Desalters and proposed a replacement schedule. SPI reported that immediate replacement of Chino I RO Train 3 is warranted based on permeate quality and its 7.5 years of age, and also recommended that CDA procure 294 elements according to Dow’s 2018 proposal. Dow Water & Process Solutions has since merged with DuPont (DowDuPont, Inc.), as DuPont Water Solutions.

The item was reviewed/approved by the Technical Advisory Committee (TAC) on September 10, 2019 and Finance Committee on September 19, 2019.

IMPACT ON BUDGET: The FY 2019/20 budget for Chino I Membrane Replacement is $150,000.

ATTACHMENT: 1) DuPont Water Solutions Proposal dated September 4, 2019 2) Separation Processes, Inc. evaluation memorandum dated August 2, 2019.

Prepared by: Tom O’Neill, CDA General Manager/CEO Page 1 of 1

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

September 4, 2019

Jose Garcia Chino Basin Desalter Authority (CDA) Chino I and Chino II Desalter Email: [email protected]

Dear Jose:

DuPont is pleased to quote the following product and pricing.

Product Quantity Price (USD) (each) BW30XFR-400/34 294 $425.00

TOTAL LUMP SUM PRICE: 124,950.00

Transportation Seller Absorbs Freight. Payment Terms Net 30 days from invoice date. Price and Terms only apply to sales within the continental U.S. Upon an accepted order, items will be shipped and invoiced pursuant to Seller’s standard terms and conditions. Quote Expires This pricing is firm through November 1st, 2019. Availability In stock, to be confirmed at time of order. Customer When ready to place your order, please contact John Shibilski in Dow Water & Service Process Solutions’ Customer Service Group at 989/832-1143 or e-mail to [email protected].

Please let me know if you require additional information. Thank you for your interest in DuPont Solutions products. Sincerely,

Laura Gallindo DuPont Water Solutions

______Cell Phone Number: 989-259-5081 Email: [email protected] PH: 989-259-50 new.dupont.com

Copyright © 2019 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates.

Separation Processes, Inc. 3152 Lionshead Ave. Carlsbad, CA 92010 Tel: 760-400-3660 Fax: 760-400-3661 www.spi-engineering.com

Date: August 2, 2019 To: Tom O’Neill & Todd Minten – Chino Basin Desalter Authority (CDA) From: Gabriela Handley & Gerry Filteau - SPI Subject: CDA RO Membrane Replacement Plan

SPI has investigated the RO membrane replacement needs for the Chino I and Chino II groundwater desalters as well as the Chino II Concentrate Reduction Facility (CRF). There are two components of membrane performance that would normally dictate the need for membrane replacement. These are as follows: 1. Loss of water permeability, which initially results in increased feed pressure and ultimately can result in reduced capacity if the maximum pump head is reached. 2. The loss of salt rejection, which results in higher permeate concentration of nitrate and TDS. Historically for the CDA RO trains, membrane replacement has not occurred based on inability to meet capacity requirements. In the past, membrane replacement has generally been driven by the economic penalty due to increased energy consumption as the membranes age. However currently, there are several trains across the three CDA RO facilities that have experienced equipment malfunctions or operational upsets over the last three years that have negatively affected permeate quality. SPI was tasked with evaluating the current condition of each of the RO trains and identifying a replacement strategy taking into account items such as age, permeate quality, feed pressure, and permeate production. Membrane replacement needs for the thirteen RO trains across the three CDA facilities were forecasted for the next ten years.

Chino I Discussion: Based on a previous analysis performed by SPI in 2009, it was estimated that if the combined RO permeate concentration of any one train were to exceed 65 mg/l Total Dissolved Solids (TDS) (130

µS/cm) or 26 mg/l Nitrate (mg/L as NO3), adjustments to the IX or VOC blend ratios would be necessary to maintain the final product water quality within the plant product limits of 350 mg/L

TDS and 25 mg/L NO3. For the purposes of this investigation, “acceptable” performance at Chino I SPI MEMORANDUM August 2, 2019 Subject: CDA RO Membrane Replacement Plan Page 2

is defined as the ability to produce a permeate flow greater than 1270 gpm per train, and maintain permeate concentrations of less than 65 mg/L TDS (130 µS/cm) and 26 mg/L NO3. Trains 1 and 2 were replaced March 2019 with new Dow elements and membrane replacement will not be necessary for several years. Trains 3 and 4 have exceeded the maximum concentrations suggested above and should be replaced as soon as possible. Given the current age of the membranes in Train 3, approximately 7.5 years, priority should be given to this train for replacement. Train 5 was brought online approximately 2 years ago and continues to meet both permeate production and quality goals.

Historically, Dow membranes (similar to those recently installed in Train 1 and 2) exceeded membrane life expectancy. While these membranes have proven to be able to meet both production and quality goals for 10 years, an increase in energy consumption was observed as the membranes aged. As a result, the membrane life expectancy that was determined to be most cost-effective was approximately 5 years. Data from the recently replaced Trains 1 and 2 was compared against the data from startup of the previous load of Dow membranes. Figure 1 below illustrates the similar trend in specific flux between the current load of Dow membranes and the previous load of Train 2 Dow membranes in 2009. SPI MEMORANDUM August 2, 2019 Subject: CDA RO Membrane Replacement Plan Page 3

Figure 1: Comparison of Initial Specific Flux Loss Specific flux is a calculated value indicating the water permeability of the membrane. It provides an indication of membrane condition as it relates to required feed pressure. While a downward slope is indication of increasing pressure requirements, the slope in Figure 1 is considered typical and consistent with efficient operation through a five-year membrane life. Therefore, it is reasonable to assume that a membrane life expectancy of approximately 5 years will continue to be cost effective.

Chino II Discussion: Based on a previous analysis performed by SPI in 2009, it was estimated that if the RO permeate concentration of any one train were to exceed 287 mg/l TDS (575 µS/cm) or 17.7 mg/l NO3, adjustments to the ion exchange or bypass blend ratios would be necessary to maintain the final

product water quality within the plant product limits of 350 mg/L TDS and 25 mg/L NO3. Since the analysis performed in 2009 Chino II has added two additional Primary RO trains as well as three SPI MEMORANDUM August 2, 2019 Subject: CDA RO Membrane Replacement Plan Page 4

Secondary RO trains at the CRF. SPI strongly recommends that the analysis be updated to take into account these system changes as they have had an effect on how the facility blends the various streams of water. For the purposes of this investigation, “acceptable” performance at Chino II is defined as the ability to produce a permeate flow greater than 1,389 gpm (original design) for Trains 1-3 and greater than 2,257 gpm (original design) for Trains 4 and 5.

Currently, Trains 1 and 2 contain membranes that are approximately 3.8 and 4.7 years old and are producing permeate conductivity values at or above 100 µS/cm. In 2017 a suspected permeate back pressure event occurred causing a loss in rejection. This was confirmed with an autopsy performed by AWC in January 2018 using elements taken from Stage 2 of both Trains 1 and 2. Probing was performed on vessels from each train in July 2019 in order to identify the extent of the high conductivity values and determine if values could be improved by a partial replacement. Data collected from probing confirmed that the majority of the membranes in each vessel were producing high conductivity values. Given the current age of the membranes and results from probing, a partial membrane replacement would not provide a substantial benefit. Input from operations staff confirmed that the increase in conductivity in these trains can at times limit the flexibility of operations staff to rotate trains online and continue to meet quality goals.

Train 3 membranes were recently replaced in March 2019 and have demonstrated stable performance. Train 4 was brought online approximately 2.5 years ago and experienced a second stage scaling event in March 2019 that affected second stage and overall permeate conductivity values. Elements were unloaded and cleaned offsite and salvaged elements from the recently replaced Train 3 were reloaded into Train 4 Stage 2. Over the last three months since the replacement, Train 4 has demonstrated stable performance. However, Train 4 overall permeate conductivity is now approximately three times higher (66 µS/cm) than Train 5 (26 µS/cm), which contains membranes of a similar age. For this reason, SPI recommends that RO Train 4 membranes be replaced as in 2021 upon reaching the expected membrane life of 5 years. Train 5 membranes are approximately 2 years old and have demonstrated stable performance and excellent permeate quality. SPI MEMORANDUM August 2, 2019 Subject: CDA RO Membrane Replacement Plan Page 5

Chino II CRF Discussion : The Secondary RO (SRO) Trains 1-3 at the CRF were brought online in early 2017 and loaded with CSM membranes. During 2017 the three RO trains were not operation the majority of the year due to startup and other operational issues involving the various other processes of the CRF. Data collection for these trains began in 2018 and the three trains were rotated through operation as needed. During this time flows fluctuated significantly resulting in unstable performance that did not provide a clear indication of membrane condition. Recently in 2019, recoveries of the Chino II Primary RO Trains were lowered providing more flow for the SRO Trains. This operational change improved performance of all three trains. In the short history of this facility the main issue affecting performance has been biofouling across all three trains. Recently cleanings were performed in order to reduce first stage differential pressures caused by the bio foulant. Initial results indicate the cleanings are able to effectively remove the foulant and reduce differential pressures with minimal decreases in salt rejection.

Given that these trains are fed by the concentrate of the Chino II Primary RO trains, it can be expected that more frequent cleanings will be required and in turn the membrane life expectancy will be lower than the Primary RO trains. Due to the limited run time on the membranes currently installed as well as the current performance, replacement is recommended at approximately 5 years age. However, for budgeting purposes, future membrane replacements are recommended once membrane age reaches 4 years. A membrane life expectancy of 4 years should be planned for under the assumption that the trains will operate more consistently as originally intended.

Current Replacement Recommendations: Immediate replacement of Chino I RO Train 3 is warranted based on permeate quality and its 7.5 years of age. SPI recommends CDA procure the optional 294 elements allotted for Chino I that were listed in the 2018 membrane procurement specification as soon as possible. SPI also recommends that CDA procure the 630 elements listed for 2020 to replace Chino I RO Train 4 and Chino II RO SPI MEMORANDUM August 2, 2019 Subject: CDA RO Membrane Replacement Plan Page 6

Train 2. These replacements will result in more efficient production, provide operations staff with more operational flexibility, and improve the ability of the facilities to keep up with demand.

Membrane replacement at Chino II is recommended for Train 2 for the calendar year 2020 as stated above. At that point in time, the membrane age will have passed the expected 5-year lifespan and the condition of the membranes in regards to permeate quality is currently the poorest of all five RO trains. Current performance of the three SRO trains located at the CRF is stable and there are no immediate needs for replacement. Once again, SPI strongly recommends that a more in-depth analysis of the overall Chino II operating strategy as it relates to water quality limits and blending requirements be performed.

Long-Term Replacement Recommendations: Table 1 below outlines the proposed membrane replacement schedule for the thirteen RO trains located across the three CDA facilities. An extended membrane replacement forecast that extends until 2030 is included as an appendix.

Table 1: Proposed CDA Membrane Replacement Plan DECEMBER JULY JULY JULY JULY JULY Chino I Desalter # of Membranes Current Age 2019 2020 2021 2022 2023 2024 Train 1 Dow 294 0.4 0.7 1.2 2.2 3.2 4.2 0.5 Train 2 Dow 294 0.4 0.7 1.2 2.2 3.2 4.2 0.5 Train 3 Toray TMC 294 7.5 7.8 0.0 1.0 2.0 3.0 4.0 Train 4 Toray TMC 294 5.6 5.9 6.4 0.5 1.5 2.5 3.5 Train 5 Toray TMD 294 1.7 2.0 2.5 3.5 4.5 0.5 1.5 Chino II Desalter Train 1 Toray TMD 336 3.8/1.4 4.1/1.7 4.6/2.2 5.6/3.2 0.5 1.5 2.5 Train 2 Toray TMC 336 4.7 5.0 6.0 0.5 1.5 2.5 3.5 Train 3 Dow 336 0.3 0.6 1.6 2.6 3.6 4.6 0.5 Train 4 Toray TMD 546 2.4 2.7 3.7 4.7 0.5 1.5 2.5 Train 5 Toray TMD 546 2.1 2.4 3.4 4.4 5.4 0.5 1.5 Chino II SRO Train 1 CSM 210 2.4 2.7 3.7 4.7 5.7 0.5 1.5 Train 2 CSM 210 2.4 2.7 3.7 4.7 0.5 1.5 2.5 Train 3 CSM 210 2.4 2.7 3.7 4.7 0.5 1.5 2.5 # of Elements per year 294 630 1302 1050 924 Assume $400/element $ 117,600 $ 252,000 $ 520,800 $ 420,000 $ 369,600 $ - Budgeted Amount $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 SPI MEMORANDUM August 2, 2019 Subject: CDA RO Membrane Replacement Plan Page 7

The month and year listed above the projected membrane ages represent the month and year in which the procurement process would begin. The subsequent membranes ages are calculated based on the assumption that membranes would be procured sometime between July and December and be loaded the following January when demand is low and shutdowns are routinely scheduled to complete maintenance activities. Values highlighted in orange represent membrane ages that are approaching the expected lifespan and signal the procurement process should begin. The approximate total amount that would be needed for the recommend replacement each year is shown in the second to last row. As the amount spent will fluctuate each year, SPI recommends CDA budget for $350,000 per year for membrane replacement. It is assumed that should the full budgeted amount not be spent during that year, funds would carry forward and be available for future use. The totals listed do not take into account any additional costs that may be incurred with membrane procurement and loading such as sales tax and temporary laborers. A price of $400 per element was assumed in the calculation. Estimations for future years have not been adjusted for inflation.

Appendix A Chino Basin Desalter Authority Long Term RO Membrane Replacement Plan

DECEMBER JULY JULY JULY JULY JULY JULY JULY JULY JULY JULY JULY Chino I Desalter # of Membranes Current Age 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Train 1 Dow 294 0.4 0.7 1.2 2.2 3.2 4.2 0.5 1.5 2.5 3.5 4.5 0.5 1.5 Train 2 Dow 294 0.4 0.7 1.2 2.2 3.2 4.2 0.5 1.5 2.5 3.5 4.5 0.5 1.5 Train 3 Toray TMC 294 7.5 7.8 0.0 1.0 2.0 3.0 4.0 5.0 0.5 1.5 2.5 3.5 4.5 Train 4 Toray TMC 294 5.6 5.9 6.4 0.5 1.5 2.5 3.5 4.5 0.5 1.5 2.5 3.5 4.5 Train 5 Toray TMD 294 1.7 2.0 2.5 3.5 4.5 0.5 1.5 2.5 3.5 4.5 0.5 1.5 2.5 Chino II Desalter Train 1 Toray TMD 336 3.8/1.4 4.1/1.7 4.6/2.2 5.6/3.2 0.5 1.5 2.5 3.5 4.5 0.5 1.5 2.5 3.5 Train 2 Toray TMC 336 4.7 5.0 6.0 0.5 1.5 2.5 3.5 4.5 0.5 1.5 1.0 2.0 3.0 Train 3 Dow 336 0.3 0.6 1.6 2.6 3.6 4.6 0.5 1.5 2.5 3.5 4.5 0.5 1.5 Train 4 Toray TMD 546 2.4 2.7 3.7 4.7 0.5 1.5 2.5 3.5 4.5 0.5 1.5 2.5 3.5 Train 5 Toray TMD 546 2.1 2.4 3.4 4.4 5.4 0.5 1.5 2.5 3.5 4.5 0.5 1.5 2.5 Chino II SRO Train 1 CSM 210 2.4 2.7 3.7 4.7 5.7 0.5 1.5 2.5 3.5 0.5 1.5 2.5 3.5 Train 2 CSM 210 2.4 2.7 3.7 4.7 0.5 1.5 2.5 3.5 0.5 1.5 2.5 3.5 0.5 Train 3 CSM 210 2.4 2.7 3.7 4.7 0.5 1.5 2.5 3.5 0.5 1.5 2.5 3.5 0.5 # of Elements per year 294 630 1302 1050 924 1344 1092 840 924 420 798 Assume $400/element $ 117,600 $ 252,000 $ 520,800 $ 420,000 $ 369,600 $ - $ 537,600 $ 436,800 $ 336,000 $ 369,600 $ 168,000 $ 319,200 Budgeted Amount $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000

Board of Directors Meeting

Agenda Item No. 8

Agenda Report September 26, 2019 SECTION: ACTION ITEM

SUBJECT: CONTRACT WITH EVOQUA WATER TECHNOLOGIES FOR SUPPLY OF AMBERLITE PWA15 AND AMBERLITE HPR4800 CI RESINS

RECOMMENDATION:

Staff recommends that the Board: 1. Approve a contract with Evoqua Water Technologies for the supply and delivery of Amberlite PWA15 and Amberlite HPR4800 CI Resins. 2. Authorize the General Manager/CEO to finalize and execute the initial contract and amendment for (1) one-year period; and 3. Authorize the General Manager/CEO to authorize expenditures up to the approved annual budgeted amounts.

BACKGROUND: Chino I and Chino II Desalters will require approximately 810 Cubic Feet (CF) of resin for FY 2019/20 for removal of nitrates in the ion exchange process. The Domestic Water Supply Permit issued to CDA by the State Water Resources Control Board, Division of Drinking Water specifies that only Amberlite HPR4800 CI shall be used for nitrate removal at the Chino I Desalter Facility and only Amberlite PWA15 shall be used for nitrate removal at the Chino II Desalter Facility. A competitive request for proposals (RFP) was advertised via PlanetBids from August 16, 2019 to August 30, 2019. Notifications were sent to 20 vendors; four potential bidders registered to download bid documents; one proposal was submitted by Evoqua Water Technologies. $/CF Delivered Qty (CF) Total (incl. tax and freight) Chino I Desalter $209.91 210 $44,081.10 Amberlite HPR4800 CI Resin Chino II Desalter $301.82 600 $181,092.00 Amberlite PWA15 Resin

The contract term will be from October 2019 to June 30, 2020, with the option to extend the contract for (1) one-year term, contingent upon mutual agreement of pricing. This item was reviewed and approved by the Technical Advisory Committee on September 10, 2019 and Finance Committee on September 19, 2019. IMPACT ON BUDGET: In the adopted 2019/20 budget, Chino I has a $50,000 budget for resin and Chino II has $150,000. The excess of $31,092 for Chino II will be covered by the total budget of $615,000 in the Materials and Supplies category.

Prepared by: Tom O’Neill, General Manager/CEO Page 1 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

Board of Directors Meeting

Agenda Item No. 9

Agenda Report September 26, 2019 SECTION: Action Item

SUBJECT: CONSTRUCTION CONTRACT AWARD FOR THE SOUTH ARCHIBALD PLUME RAW WATER PIPELINE PROJECT PHASE I (SPECIFICATION NO. CDA SAP19-017)

RECOMMENDATION: Staff recommends that the Board: 1. Approve a construction contract award to Gwinco Construction & Engineering, Inc. for construction of the Raw Water Pipeline Project Phase I (Spec No. CDA SAP19-017) in the not- to-exceed amount of $1,447,265. 2. Authorize the General Manager/CEO to execute the contract and approve authorized expenditures up to a not-to-exceed total of $1,591,992.

BACKGROUND: As part of the South Archibald Plume Project, groundwater contaminated with TCE (trichloroethylene) will be conveyed via a new dedicated pipeline from a future well (Well II-12), to the Chino II Desalter for treatment. This contract is the first of two pipeline construction contracts required to provide a continuous and connected pipeline to the Chino II Desalter (see attached exhibit).

The project generally consists of installation of approximately 3,370 LF of 18-inch diameter pipe in Archibald Avenue, City of Ontario, to extend CDA’s existing raw water transmission pipeline north from the intersection of Merrill Avenue to mid-way between Eucalyptus Avenue and Ontario Ranch Road (formerly Edison Avenue). The project also includes installation of approximately 2,098 LF of 12-inch diameter pipe in future Remington Avenue to provide for a connection to CDA Well I-11 for TCE treatment.

The South Archibald Plume Raw Water Pipeline Phase I Project construction bid package was publicly advertised, and ten (10) bids were received on September 11, 2019. The apparent low bidder’s unit bid items were evaluated for their reasonable conformance with the engineer’s estimate and compared with the other bids received. The attached bid evaluation spreadsheet details the bid breakdown analysis.

The bids were also evaluated for responsiveness as defined within the Bid Documents. Based upon this evaluation, staff concluded the lowest responsive bid is from Gwinco Construction & Engineering, Inc. The bids ranged from 54.7% above to 13.3% below the engineer’s estimate of $1,670,000. Four bids were below the engineer’s estimate. Of the six bids above the engineer’s estimate, three were less than 15% above the estimate.

Prepared by: Tom O’Neill, CDA General Manager/CEO Page 1 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

The bid price summary for the project is as follows:

Firm Bid Price Ranking Gwinco Construction & Engineering, Inc. $1,447,265 1 Norstar $1,485,966 2 Weka, Inc. $1,528,873 3 E.J. Meyer $1,655,555 4 Boudreau $1,797,038 5 Apple Valley $1,880,092 6 Leatherwood $1,898,000 7 Christensen Brothers $1,923,091 8 Ferreira $2,192,459 9 Mike Bubalo Construction $2,583,525 10 Engineer’s Estimate $1,670,000

Based upon the foregoing, award of the construction contract for the South Archibald Plume Raw Water Pipeline Phase I Project is recommended to Gwinco Construction & Engineering, Inc. as the lowest responsive and responsible bidder in the not-to-exceed amount of $1,447,265. It is also recommended that the Board authorize the General Manager/CEO to approve expenditures up to a total of $1,591,992.

ENVIRONMENTAL REVIEW: On June 4, 2015, the Board adopted Resolution No. 2015-06, adopting the Addendum to the Chino Desalter Phase 3 Expansion Initial Study/Mitigated Negative Declaration for the Addition of Expanded TCE Treatment Program. This proposed project is part of the Expanded TCE Treatment Program, now referred to as the South Archibald Plume Project. This item was reviewed and approved by the Finance Committee on September 19, 2019 and Technical Advisory Committee on September 24, 2019.

IMPACT ON BUDGET: Funding to cover the authorized expenditures limit is available in the project account via deposits of grant funding received from the USBR Title XVI and deposits from IEUA.

ATTACHMENT: 1). South Archibald Plume Project Exhibit 2). Bid Evaluation Summary

Prepared by: Tom O’Neill, CDA General Manager/CEO Page 2 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

No. 1 Bidder No. 2 Bidder No. 3 Bidder No. 4 Bidder No. 5 Bidder CDA Raw Water Pipeline Phase #1 (Archibald & Remington) Engineer's Estimate Gwinco Construction & Engineering, Inc Norstar Weka, Inc E.J. Meyer Boudreau Item# Item Description UOM Quantity Total Qty Item Price Item Total Item Price Item Total Item Price Item Total Item Price Item Total Item Price Item Total Item Price Item Total Bid Schedule No. 1 - Archibald Ave. Pipeline 101 Mobilization/Demobilization Bonding & Ins LS 1 1 $75,000.00 $75,000.00 $ 30,000.00 $ 30,000.00 $ 25,000.00 $ 25,000.00 $ 43,643.00 $ 43,643.00 $ 50,000.00 $ 50,000.00 $ 28,000.00 $ 28,000.00 102 2-in Combination ARV per JCSD EA 2 2 $4,678.00 $9,356.00 $ 8,500.00 $ 17,000.00 $ 7,500.00 $ 15,000.00 $ 7,500.00 $ 15,000.00 $ 10,000.00 $ 20,000.00 $ 8,600.00 $ 17,200.00 103 18-in C900 PVC DR14 Pipe LF 3370 3370 $156.00 $525,720.00 $ 152.00 $ 512,240.00 $ 165.00 $ 556,050.00 $ 141.00 $ 475,170.00 $ 188.00 $ 633,560.00 $ 170.00 $ 572,900.00 104 6-in BOV per JCSD F-1A EA 1 1 $5,718.00 $5,718.00 $ 12,500.00 $ 12,500.00 $ 8,000.00 $ 8,000.00 $ 14,000.00 $ 14,000.00 $ 15,000.00 $ 15,000.00 $ 13,400.00 $ 13,400.00 105 18-in BFV per JCSD B-3 EA 1 1 $12,994.00 $12,994.00 $ 9,500.00 $ 9,500.00 $ 10,000.00 $ 10,000.00 $ 8,000.00 $ 8,000.00 $ 6,000.00 $ 6,000.00 $ 8,500.00 $ 8,500.00 106 Remove/Repair Asphalt concrete, C&G, Sidewalk, Irrigation LS 1 1 $8,500.00 $8,500.00 $ 10,000.00 $ 10,000.00 $ 5,000.00 $ 5,000.00 $ 64,000.00 $ 64,000.00 $ 3,000.00 $ 3,000.00 $ 16,000.00 $ 16,000.00 107 Connection at Sta. 124+09.19 LS 1 1 $2,000.00 $2,000.00 $ 8,700.00 $ 8,700.00 $ 25,000.00 $ 25,000.00 $ 6,500.00 $ 6,500.00 $ 5,000.00 $ 5,000.00 $ 4,700.00 $ 4,700.00 108 Connection at Sta. 153+33 +/- LS 1 1 $2,000.00 $2,000.00 $ 2,500.00 $ 2,500.00 $ 1,000.00 $ 1,000.00 $ 7,000.00 $ 7,000.00 $ 10,000.00 $ 10,000.00 $ 5,700.00 $ 5,700.00 109 Encroachment Permit City of Ontario LS 1 1 $35,000.00 $35,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 110 Potholing LS 1 1 $20,000.00 $20,000.00 $ 15,000.00 $ 15,000.00 $ 10,000.00 $ 10,000.00 $ 16,500.00 $ 16,500.00 $ 20,000.00 $ 20,000.00 $ 11,500.00 $ 11,500.00 111 Trenching, Sheeting Shoring & Bracing LS 1 1 $10,000.00 $10,000.00 $ 25,000.00 $ 25,000.00 $ 5,000.00 $ 5,000.00 $ 33,700.00 $ 33,700.00 $ 15,000.00 $ 15,000.00 $ 15,400.00 $ 15,400.00 112 Preconstruction Audio & Video LS 1 1 $2,000.00 $2,000.00 $ 2,500.00 $ 2,500.00 $ 5,000.00 $ 5,000.00 $ 2,400.00 $ 2,400.00 $ 3,000.00 $ 3,000.00 $ 4,000.00 $ 4,000.00 113 Signed Traffic Control Plan and TC Implementation LS 1 1 $10,000.00 $10,000.00 $ 15,000.00 $ 15,000.00 $ 5,000.00 $ 5,000.00 $ 25,000.00 $ 25,000.00 $ 500.00 $ 500.00 $ 32,000.00 $ 32,000.00 114 Sawcut, Remove/Repair AC Paving, Temp Base, Base Matrl LF 260 260 $35.00 $9,100.00 $ 75.00 $ 19,500.00 $ 70.00 $ 18,200.00 $ 40.00 $ 10,400.00 $ 20.00 $ 5,200.00 $ 77.00 $ 20,020.00 115 Asphalt Concrete Cap fr GutterLip to LaneLine LF 260 260 $20.00 $5,200.00 $ 80.00 $ 20,800.00 $ 103.00 $ 26,780.00 $ 60.00 $ 15,600.00 $ 125.00 $ 32,500.00 $ 58.00 $ 15,080.00 116 Sawcut, remove/replace ConcretePanel (10-in Thick over 6" Agg) SQFT 8310 8310 $20.00 $166,200.00 $ 20.00 $ 166,200.00 $ 22.00 $ 182,820.00 $ 22.50 $ 186,975.00 $ 25.00 $ 207,750.00 $ 25.00 $ 207,750.00 117 Remove and Replace Existing Concrete C&G LF 801 801 $30.00 $24,030.00 $ 50.00 $ 40,050.00 $ 55.00 $ 44,055.00 $ 52.00 $ 41,652.00 $ 75.00 $ 60,075.00 $ 44.00 $ 35,244.00 118 Compliance with Grant Funding LS 1 1 $2,000.00 $2,000.00 $ 3,500.00 $ 3,500.00 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 500.00 $ 500.00 $ 5,950.00 $ 5,950.00 119 Compliance with MMRP LS 1 1 $5,000.00 $5,000.00 $ 3,500.00 $ 3,500.00 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 500.00 $ 500.00 $ 6,450.00 $ 6,450.00 120 Replace Traffic Loops, Provide Temp Control LS 1 1 $15,000.00 $15,000.00 $ 100.00 $ 100.00 $ 1.00 $ 1.00 $ 1,000.00 $ 1,000.00 $ 2,000.00 $ 2,000.00 $ 25,200.00 $ 25,200.00 121 Construction Water LS 1 1 $1,000.00 $1,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 4,000.00 $ 4,000.00 $ 2,000.00 $ 2,000.00 $ 3,670.00 $ 3,670.00 122 Disinfect and Pressure Test Raw Waterline LS 1 1 $2,500.00 $2,500.00 $ 11,000.00 $ 11,000.00 $ 5,000.00 $ 5,000.00 $ 6,740.00 $ 6,740.00 $ 8,000.00 $ 8,000.00 $ 15,700.00 $ 15,700.00 123 Dewater and Dechlorinate Raw Waterline LS 1 1 $2,000.00 $2,000.00 $ 6,500.00 $ 6,500.00 $ 5,000.00 $ 5,000.00 $ 3,370.00 $ 3,370.00 $ 3,000.00 $ 3,000.00 $ 4,100.00 $ 4,100.00 124 Locator Wire Boxes LS 1 1 $4,000.00 $4,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 4,000.00 $ 4,000.00 $ 5,000.00 $ 5,000.00 $ 14,200.00 $ 14,200.00 125 Support of Existing Utilities LS 1 1 $1,000.00 $1,000.00 $ 15,000.00 $ 15,000.00 $ 10,000.00 $ 10,000.00 $ 13,000.00 $ 13,000.00 $ 6,000.00 $ 6,000.00 $ 48,000.00 $ 48,000.00 126 Unknown Mainline Utility Crossings EA 5 5 $1,500.00 $7,500.00 $ 1,000.00 $ 5,000.00 $ 100.00 $ 500.00 $ 6,500.00 $ 32,500.00 $ 6,500.00 $ 32,500.00 $ 2,480.00 $ 12,400.00 127 Pothole Additional Mainline Utilities EA 5 5 $1,500.00 $7,500.00 $ 750.00 $ 3,750.00 $ 500.00 $ 2,500.00 $ 550.00 $ 2,750.00 $ 1,000.00 $ 5,000.00 $ 860.00 $ 4,300.00 128 NPDES/SWPPP Compliance LS 1 1 $4,000.00 $4,000.00 $ 3,500.00 $ 3,500.00 $ 5,000.00 $ 5,000.00 $ 1,500.00 $ 1,500.00 $ 2,500.00 $ 2,500.00 $ 18,600.00 $ 18,600.00 129 Removal and Disposal of Contaminated Soil CUYD 10 10 $250.00 $2,500.00 $ 150.00 $ 1,500.00 $ 100.00 $ 1,000.00 $ 150.00 $ 1,500.00 $ 150.00 $ 1,500.00 $ 600.00 $ 6,000.00 130 Project Sign EA 3 3 $0.00 $ 650.00 $ 1,950.00 $ 1,500.00 $ 4,500.00 $ 725.00 $ 2,175.00 $ 1,500.00 $ 4,500.00 $ 1,100.00 $ 3,300.00 131 Complete Balance not Specified in 101-130 LS 1 1 $10,000.00 $10,000.00 $ 2,500.00 $ 2,500.00 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 100.00 $ 100.00 $ 12,300.00 $ 12,300.00 Bid Schedule No. 2 - Remington 201 Mobilization/Demobilization Bonding and Insurance LS 1 1 $25,000.00 $25,000.00 $ 15,000.00 $ 15,000.00 $ 10,000.00 $ 10,000.00 $ 19,000.00 $ 19,000.00 $ 20,766.00 $ 20,766.00 $ 22,000.00 $ 22,000.00 202 12-in C900 PVC DR14 Pipe LF 2098 2098 $130.00 $272,740.00 $ 75.00 $ 157,350.00 $ 100.00 $ 209,800.00 $ 88.00 $ 184,624.00 $ 98.00 $ 205,604.00 $ 103.00 $ 216,094.00 203 24-in BFV per JCSD B-3 EA 1 1 $12,994.00 $12,994.00 $ 12,500.00 $ 12,500.00 $ 10,000.00 $ 10,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,800.00 $ 12,800.00 204 4-in BOV per JCSD F-1A EA 2 2 $5,718.00 $11,436.00 $ 11,700.00 $ 23,400.00 $ 8,000.00 $ 16,000.00 $ 10,000.00 $ 20,000.00 $ 12,000.00 $ 24,000.00 $ 8,400.00 $ 16,800.00 205 2-in Combination ARV per JCSD EA 2 2 $4,678.00 $9,356.00 $ 9,700.00 $ 19,400.00 $ 7,500.00 $ 15,000.00 $ 10,000.00 $ 20,000.00 $ 10,000.00 $ 20,000.00 $ 8,000.00 $ 16,000.00 206 Connection 2 at Sta. 35+95.55 LS 1 1 $9,000.00 $9,000.00 $ 30,000.00 $ 30,000.00 $ 18,000.00 $ 18,000.00 $ 25,000.00 $ 25,000.00 $ 20,000.00 $ 20,000.00 $ 31,000.00 $ 31,000.00 207 12-in RSGV per JCSD B-1 LS 1 1 $3,639.00 $3,639.00 $ 5,000.00 $ 5,000.00 $ 4,500.00 $ 4,500.00 $ 4,000.00 $ 4,000.00 $ 5,000.00 $ 5,000.00 $ 5,300.00 $ 5,300.00 208 4-in Temp end of Line BOV at Sta. 14+32 EA 1 1 $4,678.00 $4,678.00 $ 10,000.00 $ 10,000.00 $ 4,500.00 $ 4,500.00 $ 9,000.00 $ 9,000.00 $ 4,000.00 $ 4,000.00 $ 7,400.00 $ 7,400.00 209 Removal/Repair Asphalt concrete, C&G, Sidewalk, Irrigation LS 1 1 $1,000.00 $1,000.00 $ 7,500.00 $ 7,500.00 $ 5,000.00 $ 5,000.00 $ 4,500.00 $ 4,500.00 $ 2,500.00 $ 2,500.00 $ 12,000.00 $ 12,000.00 210 Cathodic Protection Test Sta. per JCSD K-3 LS 1 1 $1,500.00 $1,500.00 $ 3,500.00 $ 3,500.00 $ 4,000.00 $ 4,000.00 $ 2,700.00 $ 2,700.00 $ 1,900.00 $ 1,900.00 $ 2,900.00 $ 2,900.00 211 18-in Steel Casing including Spacers, End Seals LF 53 53 $210.00 $11,130.00 $ 375.00 $ 19,875.00 $ 777.00 $ 41,181.00 $ 700.00 $ 37,100.00 $ 300.00 $ 15,900.00 $ 670.00 $ 35,510.00 212 Welded 12-in Steel DR-14 Pipe LF 63 63 $200.00 $12,600.00 $ 350.00 $ 22,050.00 $ 333.00 $ 20,979.00 $ 200.00 $ 12,600.00 $ 500.00 $ 31,500.00 $ 250.00 $ 15,750.00 213 Encroachment Permit City of Ontario LS 1 1 $5,000.00 $5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 214 NPDES/SWPPP Compliance LS 1 1 $4,000.00 $4,000.00 $ 2,500.00 $ 2,500.00 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 2,500.00 $ 2,500.00 $ 18,000.00 $ 18,000.00 215 Potholing LS 1 1 $4,000.00 $4,000.00 $ 4,000.00 $ 4,000.00 $ 5,000.00 $ 5,000.00 $ 5,200.00 $ 5,200.00 $ 10,000.00 $ 10,000.00 $ 7,950.00 $ 7,950.00 216 Trenching, Sheeting Shoring & Bracing LS 1 1 $5,000.00 $5,000.00 $ 11,000.00 $ 11,000.00 $ 5,000.00 $ 5,000.00 $ 20,980.00 $ 20,980.00 $ 10,000.00 $ 10,000.00 $ 3,740.00 $ 3,740.00 217 Preconstruction Audio & Video LS 1 1 $1,000.00 $1,000.00 $ 1,500.00 $ 1,500.00 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 2,000.00 $ 2,000.00 $ 4,000.00 $ 4,000.00 218 Signed Traffic Control Plan, TC Implementtn LS 1 1 $7,500.00 $7,500.00 $ 7,500.00 $ 7,500.00 $ 15,000.00 $ 15,000.00 $ 5,000.00 $ 5,000.00 $ 2,500.00 $ 2,500.00 $ 17,000.00 $ 17,000.00 219 Sawcut, Remove/Repair AC Paving, Temp Base, Base Material LF 100 100 $35.00 $3,500.00 $ 80.00 $ 8,000.00 $ 120.00 $ 12,000.00 $ 40.00 $ 4,000.00 $ 16.00 $ 1,600.00 $ 112.00 $ 11,200.00 220 Asphalt Concrete Cap fr Centerline of Str to C&G or Edge of Pvmnt LF 100 100 $20.00 $2,000.00 $ 150.00 $ 15,000.00 $ 133.00 $ 13,300.00 $ 60.00 $ 6,000.00 $ 90.00 $ 9,000.00 $ 114.00 $ 11,400.00 221 Compliance with MMRP LS 1 1 $2,000.00 $2,000.00 $ 1,500.00 $ 1,500.00 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 500.00 $ 500.00 $ 4,500.00 $ 4,500.00 222 Compliance with Grant Funding LS 1 1 $2,000.00 $2,000.00 $ 1,500.00 $ 1,500.00 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 500.00 $ 500.00 $ 4,760.00 $ 4,760.00 223 Construction Water LS 1 1 $1,000.00 $1,000.00 $ 1,500.00 $ 1,500.00 $ 4,000.00 $ 4,000.00 $ 1,000.00 $ 1,000.00 $ 1,500.00 $ 1,500.00 $ 3,670.00 $ 3,670.00 224 Disinfect and Pressure Test Raw Waterline LS 1 1 $1,500.00 $1,500.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 4,196.00 $ 4,196.00 $ 5,000.00 $ 5,000.00 $ 11,200.00 $ 11,200.00 225 Dewater and Dechlorinate Raw Waterline LS 1 1 $1,500.00 $1,500.00 $ 2,500.00 $ 2,500.00 $ 3,000.00 $ 3,000.00 $ 2,098.00 $ 2,098.00 $ 2,500.00 $ 2,500.00 $ 4,100.00 $ 4,100.00 226 Locator Wire Boxes LS 1 1 $3,000.00 $3,000.00 $ 2,500.00 $ 2,500.00 $ 2,000.00 $ 2,000.00 $ 2,400.00 $ 2,400.00 $ 3,000.00 $ 3,000.00 $ 8,700.00 $ 8,700.00 227 Support of Existing Utilities LS 1 1 $10,000.00 $10,000.00 $ 7,500.00 $ 7,500.00 $ 4,000.00 $ 4,000.00 $ 4,500.00 $ 4,500.00 $ 2,500.00 $ 2,500.00 $ 10,600.00 $ 10,600.00 228 Unknown Mainline Utility Crossings EA 2 2 $1,500.00 $3,000.00 $ 1,000.00 $ 2,000.00 $ 100.00 $ 200.00 $ 3,500.00 $ 7,000.00 $ 3,000.00 $ 6,000.00 $ 3,030.00 $ 6,060.00 229 Pothole Additional Mainline Utilities EA 2 2 $1,500.00 $3,000.00 $ 750.00 $ 1,500.00 $ 500.00 $ 1,000.00 $ 700.00 $ 1,400.00 $ 1,000.00 $ 2,000.00 $ 1,020.00 $ 2,040.00 230 Removal and Disposal of Contaminated Soil CUYD 10 10 $250.00 $2,500.00 $ 150.00 $ 1,500.00 $ 100.00 $ 1,000.00 $ 150.00 $ 1,500.00 $ 150.00 $ 1,500.00 $ 600.00 $ 6,000.00 231 Clear, Grub, Legally Dispose of Materials along Pipe Alignment LS 1 1 $0.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 1,500.00 $ 1,500.00 $ 5,000.00 $ 5,000.00 $ 5,400.00 $ 5,400.00 232 Owner Directed Demob/Remob for Pipeline within Remington LS 1 1 $0.00 $ 4,400.00 $ 4,400.00 $ 100.00 $ 100.00 $ 5,500.00 $ 5,500.00 $ 5,000.00 $ 5,000.00 $ 7,100.00 $ 7,100.00 233 Complete Balance not Specified in 101-130 LS 1 1 $10,000.00 $10,000.00 $ 1,500.00 $ 1,500.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 100.00 $ 100.00 $ 8,500.00 $ 8,500.00 BASE BID TOTAL * $1,433,391.00 $ 1,447,265.00 $ 1,515,966.00 $ 1,528,873.00 $ 1,655,555.00 $ 1,797,038.00 BID ITEM ADJUSTMENT TOTAL ** $236,609.00 $ - $ (30,000.00) $ - $ - $ - ADJUSTED TOTAL PRICE * $1,670,000.00 $ 1,447,265.00 $ 1,485,966.00 $ 1,528,873.00 $ 1,655,555.00 $ 1,797,038.00 *Engineers e` 0 **Bid adjustment field represents engineer's contingency value. No. 6 Bidder No. 7 Bidder No. 8 Bidder No. 9 Bidder No. 10 Bidder CDA Raw Water Pipeline Phase #1 (Archibald & Remington) Apple Valley Leatherwood Christensen Brothers Ferreira Mike Bubalo Construction Item# Item Description UOM Quantity Total Qty Item Price Item Total Item Price Item Total Item Price Item Total Item Price Item Total Item Price Item Total Bid Schedule No. 1 - Archibald Ave. Pipeline 101 Mobilization/Demobilization Bonding & Ins LS 1 1 $ 49,198.00 $ 49,198.00 $ 65,000.00 $ 65,000.00 $ 57,000.00 $ 57,000.00 $ 5,627.00 $ 5,627.00 $ 75,000.00 $ 75,000.00 102 2-in Combination ARV per JCSD EA 2 2 $ 7,958.00 $ 15,916.00 $ 7,200.00 $ 14,400.00 $ 7,300.00 $ 14,600.00 $ 8,853.00 $ 17,706.00 $ 20,000.00 $ 40,000.00 103 18-in C900 PVC DR14 Pipe LF 3370 3370 $ 140.00 $ 471,800.00 $ 195.00 $ 657,150.00 $ 170.00 $ 572,900.00 $ 258.00 $ 869,460.00 $ 266.00 $ 896,420.00 104 6-in BOV per JCSD F-1A EA 1 1 $ 12,568.00 $ 12,568.00 $ 11,200.00 $ 11,200.00 $ 10,300.00 $ 10,300.00 $ 11,310.00 $ 11,310.00 $ 25,000.00 $ 25,000.00 105 18-in BFV per JCSD B-3 EA 1 1 $ 5,817.00 $ 5,817.00 $ 8,300.00 $ 8,300.00 $ 6,400.00 $ 6,400.00 $ 6,862.00 $ 6,862.00 $ 20,000.00 $ 20,000.00 106 Remove/Repair Asphalt concrete, C&G, Sidewalk, Irrigation LS 1 1 $ 11,528.00 $ 11,528.00 $ 20,300.00 $ 20,300.00 $ 19,700.00 $ 19,700.00 $ 4,021.00 $ 4,021.00 $ 25,000.00 $ 25,000.00 107 Connection at Sta. 124+09.19 LS 1 1 $ 5,597.00 $ 5,597.00 $ 14,000.00 $ 14,000.00 $ 14,300.00 $ 14,300.00 $ 13,811.00 $ 13,811.00 $ 30,000.00 $ 30,000.00 108 Connection at Sta. 153+33 +/- LS 1 1 $ 21,673.00 $ 21,673.00 $ 13,000.00 $ 13,000.00 $ 15,000.00 $ 15,000.00 $ 23,275.00 $ 23,275.00 $ 15,000.00 $ 15,000.00 109 Encroachment Permit City of Ontario LS 1 1 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 110 Potholing LS 1 1 $ 19,306.00 $ 19,306.00 $ 15,000.00 $ 15,000.00 $ 20,000.00 $ 20,000.00 $ 8,887.00 $ 8,887.00 $ 30,000.00 $ 30,000.00 111 Trenching, Sheeting Shoring & Bracing LS 1 1 $ 13,908.00 $ 13,908.00 $ 10,000.00 $ 10,000.00 $ 1,860.00 $ 1,860.00 $ 17,831.00 $ 17,831.00 $ 20,000.00 $ 20,000.00 112 Preconstruction Audio & Video LS 1 1 $ 2,073.00 $ 2,073.00 $ 2,000.00 $ 2,000.00 $ 3,360.00 $ 3,360.00 $ 1,105.00 $ 1,105.00 $ 5,000.00 $ 5,000.00 113 Signed Traffic Control Plan and TC Implementation LS 1 1 $ 38,156.00 $ 38,156.00 $ 20,000.00 $ 20,000.00 $ 22,300.00 $ 22,300.00 $ 10,119.00 $ 10,119.00 $ 5,000.00 $ 5,000.00 114 Sawcut, Remove/Repair AC Paving, Temp Base, Base Matrl LF 260 260 $ 91.00 $ 23,660.00 $ 55.00 $ 14,300.00 $ 56.00 $ 14,560.00 $ 112.00 $ 29,120.00 $ 90.00 $ 23,400.00 115 Asphalt Concrete Cap fr GutterLip to LaneLine LF 260 260 $ 111.00 $ 28,860.00 $ 165.00 $ 42,900.00 $ 41.00 $ 10,660.00 $ 117.00 $ 30,420.00 $ 50.00 $ 13,000.00 116 Sawcut, remove/replace ConcretePanel (10-in Thick over 6" Agg) SQFT 8310 8310 $ 23.00 $ 191,130.00 $ 30.00 $ 249,300.00 $ 25.00 $ 207,750.00 $ 28.00 $ 232,680.00 $ 25.00 $ 207,750.00 117 Remove and Replace Existing Concrete C&G LF 801 801 $ 52.00 $ 41,652.00 $ 70.00 $ 56,070.00 $ 45.00 $ 36,045.00 $ 73.00 $ 58,473.00 $ 75.00 $ 60,075.00 118 Compliance with Grant Funding LS 1 1 $ 7,972.00 $ 7,972.00 $ 1,100.00 $ 1,100.00 $ 5,600.00 $ 5,600.00 $ 2,093.00 $ 2,093.00 $ 2,000.00 $ 2,000.00 119 Compliance with MMRP LS 1 1 $ 20,771.00 $ 20,771.00 $ 8,000.00 $ 8,000.00 $ 5,600.00 $ 5,600.00 $ 2,093.00 $ 2,093.00 $ 3,000.00 $ 3,000.00 120 Replace Traffic Loops, Provide Temp Control LS 1 1 $ 26,462.00 $ 26,462.00 $ 1,000.00 $ 1,000.00 $ 3,780.00 $ 3,780.00 $ 6,397.00 $ 6,397.00 $ 25,000.00 $ 25,000.00 121 Construction Water LS 1 1 $ 7,972.00 $ 7,972.00 $ 2,000.00 $ 2,000.00 $ 2,500.00 $ 2,500.00 $ 2,008.00 $ 2,008.00 $ 5,000.00 $ 5,000.00 122 Disinfect and Pressure Test Raw Waterline LS 1 1 $ 4,253.00 $ 4,253.00 $ 14,300.00 $ 14,300.00 $ 7,600.00 $ 7,600.00 $ 11,386.00 $ 11,386.00 $ 10,000.00 $ 10,000.00 123 Dewater and Dechlorinate Raw Waterline LS 1 1 $ 3,967.00 $ 3,967.00 $ 11,600.00 $ 11,600.00 $ 21,000.00 $ 21,000.00 $ 6,896.00 $ 6,896.00 $ 5,000.00 $ 5,000.00 124 Locator Wire Boxes LS 1 1 $ 5,186.00 $ 5,186.00 $ 1,000.00 $ 1,000.00 $ 4,100.00 $ 4,100.00 $ 6,518.00 $ 6,518.00 $ 5,000.00 $ 5,000.00 125 Support of Existing Utilities LS 1 1 $ 4,974.00 $ 4,974.00 $ 7,000.00 $ 7,000.00 $ 6,300.00 $ 6,300.00 $ 1,163.00 $ 1,163.00 $ 5,000.00 $ 5,000.00 126 Unknown Mainline Utility Crossings EA 5 5 $ 11,954.00 $ 59,770.00 $ 350.00 $ 1,750.00 $ 1,430.00 $ 7,150.00 $ 19,433.00 $ 97,165.00 $ 1,000.00 $ 5,000.00 127 Pothole Additional Mainline Utilities EA 5 5 $ 826.00 $ 4,130.00 $ 350.00 $ 1,750.00 $ 1,800.00 $ 9,000.00 $ 711.00 $ 3,555.00 $ 1,000.00 $ 5,000.00 128 NPDES/SWPPP Compliance LS 1 1 $ 8,292.00 $ 8,292.00 $ 7,700.00 $ 7,700.00 $ 6,400.00 $ 6,400.00 $ 7,897.00 $ 7,897.00 $ 5,000.00 $ 5,000.00 129 Removal and Disposal of Contaminated Soil CUYD 10 10 $ 918.00 $ 9,180.00 $ 275.00 $ 2,750.00 $ 480.00 $ 4,800.00 $ 275.00 $ 2,750.00 $ 250.00 $ 2,500.00 130 Project Sign EA 3 3 $ 1,945.00 $ 5,835.00 $ 3,000.00 $ 9,000.00 $ 1,420.00 $ 4,260.00 $ 1,000.00 $ 3,000.00 $ 800.00 $ 2,400.00 131 Complete Balance not Specified in 101-130 LS 1 1 $ 33,337.00 $ 33,337.00 $ 5,000.00 $ 5,000.00 $ 16,800.00 $ 16,800.00 $ 52,206.00 $ 52,206.00 $ 5,000.00 $ 5,000.00 Bid Schedule No. 2 - Remington 201 Mobilization/Demobilization Bonding and Insurance LS 1 1 $ 25,028.00 $ 25,028.00 $ 25,000.00 $ 25,000.00 $ 35,600.00 $ 35,600.00 $ 5,627.00 $ 5,627.00 $ 50,000.00 $ 50,000.00 202 12-in C900 PVC DR14 Pipe LF 2098 2098 $ 76.00 $ 159,448.00 $ 110.00 $ 230,780.00 $ 108.00 $ 226,584.00 $ 120.00 $ 251,760.00 $ 225.00 $ 472,050.00 203 24-in BFV per JCSD B-3 EA 1 1 $ 10,161.00 $ 10,161.00 $ 14,000.00 $ 14,000.00 $ 12,300.00 $ 12,300.00 $ 12,204.00 $ 12,204.00 $ 40,000.00 $ 40,000.00 204 4-in BOV per JCSD F-1A EA 2 2 $ 9,024.00 $ 18,048.00 $ 7,600.00 $ 15,200.00 $ 10,400.00 $ 20,800.00 $ 11,401.00 $ 22,802.00 $ 30,000.00 $ 60,000.00 205 2-in Combination ARV per JCSD EA 2 2 $ 8,833.00 $ 17,666.00 $ 7,400.00 $ 14,800.00 $ 9,100.00 $ 18,200.00 $ 11,089.00 $ 22,178.00 $ 40,000.00 $ 80,000.00 206 Connection 2 at Sta. 35+95.55 LS 1 1 $ 19,138.00 $ 19,138.00 $ 28,000.00 $ 28,000.00 $ 23,000.00 $ 23,000.00 $ 25,357.00 $ 25,357.00 $ 50,000.00 $ 50,000.00 207 12-in RSGV per JCSD B-1 LS 1 1 $ 3,984.00 $ 3,984.00 $ 5,800.00 $ 5,800.00 $ 4,300.00 $ 4,300.00 $ 4,544.00 $ 4,544.00 $ 15,000.00 $ 15,000.00 208 4-in Temp end of Line BOV at Sta. 14+32 EA 1 1 $ 5,607.00 $ 5,607.00 $ 6,100.00 $ 6,100.00 $ 9,100.00 $ 9,100.00 $ 8,437.00 $ 8,437.00 $ 18,000.00 $ 18,000.00 209 Removal/Repair Asphalt concrete, C&G, Sidewalk, Irrigation LS 1 1 $ 4,974.00 $ 4,974.00 $ 2,800.00 $ 2,800.00 $ 39,000.00 $ 39,000.00 $ 4,021.00 $ 4,021.00 $ 25,000.00 $ 25,000.00 210 Cathodic Protection Test Sta. per JCSD K-3 LS 1 1 $ 5,764.00 $ 5,764.00 $ 1,000.00 $ 1,000.00 $ 3,400.00 $ 3,400.00 $ 3,895.00 $ 3,895.00 $ 5,000.00 $ 5,000.00 211 18-in Steel Casing including Spacers, End Seals LF 53 53 $ 2,042.00 $ 108,226.00 $ 975.00 $ 51,675.00 $ 1,500.00 $ 79,500.00 $ 1,336.00 $ 70,808.00 $ 800.00 $ 42,400.00 212 Welded 12-in Steel DR-14 Pipe LF 63 63 $ 213.00 $ 13,419.00 $ 275.00 $ 17,325.00 $ 374.00 $ 23,562.00 $ 277.00 $ 17,451.00 $ 800.00 $ 50,400.00 213 Encroachment Permit City of Ontario LS 1 1 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 214 NPDES/SWPPP Compliance LS 1 1 $ 13,139.00 $ 13,139.00 $ 10,000.00 $ 10,000.00 $ 5,500.00 $ 5,500.00 $ 4,297.00 $ 4,297.00 $ 5,000.00 $ 5,000.00 215 Potholing LS 1 1 $ 20,073.00 $ 20,073.00 $ 8,000.00 $ 8,000.00 $ 24,400.00 $ 24,400.00 $ 3,855.00 $ 3,855.00 $ 20,000.00 $ 20,000.00 216 Trenching, Sheeting Shoring & Bracing LS 1 1 $ 23,685.00 $ 23,685.00 $ 5,000.00 $ 5,000.00 $ 19,000.00 $ 19,000.00 $ 18,101.00 $ 18,101.00 $ 30,000.00 $ 30,000.00 217 Preconstruction Audio & Video LS 1 1 $ 2,073.00 $ 2,073.00 $ 2,000.00 $ 2,000.00 $ 1,120.00 $ 1,120.00 $ 1,105.00 $ 1,105.00 $ 2,000.00 $ 2,000.00 218 Signed Traffic Control Plan, TC Implementtn LS 1 1 $ 8,042.00 $ 8,042.00 $ 15,000.00 $ 15,000.00 $ 25,400.00 $ 25,400.00 $ 930.00 $ 930.00 $ 3,000.00 $ 3,000.00 219 Sawcut, Remove/Repair AC Paving, Temp Base, Base Material LF 100 100 $ 68.00 $ 6,800.00 $ 250.00 $ 25,000.00 $ 117.00 $ 11,700.00 $ 90.00 $ 9,000.00 $ 90.00 $ 9,000.00 220 Asphalt Concrete Cap fr Centerline of Str to C&G or Edge of Pvmnt LF 100 100 $ 78.00 $ 7,800.00 $ 220.00 $ 22,000.00 $ 216.00 $ 21,600.00 $ 117.00 $ 11,700.00 $ 50.00 $ 5,000.00 221 Compliance with MMRP LS 1 1 $ 44,335.00 $ 44,335.00 $ 9,600.00 $ 9,600.00 $ 5,600.00 $ 5,600.00 $ 1,395.00 $ 1,395.00 $ 5,000.00 $ 5,000.00 222 Compliance with Grant Funding LS 1 1 $ 17,887.00 $ 17,887.00 $ 1,100.00 $ 1,100.00 $ 5,600.00 $ 5,600.00 $ 1,395.00 $ 1,395.00 $ 5,000.00 $ 5,000.00 223 Construction Water LS 1 1 $ 14,892.00 $ 14,892.00 $ 1,000.00 $ 1,000.00 $ 2,600.00 $ 2,600.00 $ 2,088.00 $ 2,088.00 $ 5,000.00 $ 5,000.00 224 Disinfect and Pressure Test Raw Waterline LS 1 1 $ 6,257.00 $ 6,257.00 $ 7,200.00 $ 7,200.00 $ 7,900.00 $ 7,900.00 $ 6,356.00 $ 6,356.00 $ 10,000.00 $ 10,000.00 225 Dewater and Dechlorinate Raw Waterline LS 1 1 $ 3,714.00 $ 3,714.00 $ 4,500.00 $ 4,500.00 $ 7,900.00 $ 7,900.00 $ 3,448.00 $ 3,448.00 $ 10,000.00 $ 10,000.00 226 Locator Wire Boxes LS 1 1 $ 4,434.00 $ 4,434.00 $ 1,000.00 $ 1,000.00 $ 3,200.00 $ 3,200.00 $ 5,323.00 $ 5,323.00 $ 4,000.00 $ 4,000.00 227 Support of Existing Utilities LS 1 1 $ 14,924.00 $ 14,924.00 $ 2,100.00 $ 2,100.00 $ 11,700.00 $ 11,700.00 $ 1,163.00 $ 1,163.00 $ 5,000.00 $ 5,000.00 228 Unknown Mainline Utility Crossings EA 2 2 $ 7,578.00 $ 15,156.00 $ 350.00 $ 700.00 $ 6,500.00 $ 13,000.00 $ 13,253.00 $ 26,506.00 $ 1,000.00 $ 2,000.00 229 Pothole Additional Mainline Utilities EA 2 2 $ 408.00 $ 816.00 $ 350.00 $ 700.00 $ 4,400.00 $ 8,800.00 $ 711.00 $ 1,422.00 $ 1,000.00 $ 2,000.00 230 Removal and Disposal of Contaminated Soil CUYD 10 10 $ 918.00 $ 9,180.00 $ 275.00 $ 2,750.00 $ 560.00 $ 5,600.00 $ 275.00 $ 2,750.00 $ 250.00 $ 2,500.00 231 Clear, Grub, Legally Dispose of Materials along Pipe Alignment LS 1 1 $ 22,451.00 $ 22,451.00 $ 15,000.00 $ 15,000.00 $ 20,000.00 $ 20,000.00 $ 20,390.00 $ 20,390.00 $ 10,000.00 $ 10,000.00 232 Owner Directed Demob/Remob for Pipeline within Remington LS 1 1 $ 14,223.00 $ 14,223.00 $ 3,500.00 $ 3,500.00 $ 16,500.00 $ 16,500.00 $ 5,404.00 $ 5,404.00 $ 2,000.00 $ 2,000.00 233 Complete Balance not Specified in 101-130 LS 1 1 $ 23,805.00 $ 23,805.00 $ 2,500.00 $ 2,500.00 $ 19,000.00 $ 19,000.00 $ 10,913.00 $ 10,913.00 $ 20,000.00 $ 20,000.00 BASE BID TOTAL $ 1,880,092.00 $ 1,898,000.00 $ 1,923,091.00 $ 2,192,459.00 $ 2,699,895.00 BID ITEM ADJUSTMENT TOTAL $ - $ - $ - $ - $ (116,370.00) ADJUSTED TOTAL PRICE $ 1,880,092.00 $ 1,898,000.00 $ 1,923,091.00 $ 2,192,459.00 $ 2,583,525.00

0

Board of Directors Meeting

Agenda Item No. 10

Agenda Report September 26, 2019 SECTION: ACTION ITEM

SUBJECT: PHASE 3 EXPANSION: AGREEMENT WITH CAROLLO ENGINEERS FOR CONCENTRATE REDUCTION FACILITY MODIFICATIONS ENGINEERING SERVICES DURING CONSTRUCTION, INSPECTION SERVICES, AND FIELD ENGINEERING SERVICES

RECOMMENDATION: Staff recommends that the Board: 1. Approve a Professional Services Agreement with Carollo Engineers for engineering and inspection services in the not-to-exceed amount of $93,880; and 2. Authorize the General Manager/CEO to finalize and execute the amendment and approve authorized expenditures up to a not-to-exceed total of $103,268.

BACKGROUND: Carollo Engineers is the Engineer-of-Record for the Concentrate Reduction Facility (CRF). The CRF is a first of its kind treatment facility, designed to treat brine concentrate generated from the Chino II Desalter RO membranes. JCSD operations and CDA staff have been working with Carollo Engineers to determine how best to improve performance at the CRF, particularly the pre-treatment pellet reactor softening system and clarifiers. Based upon Carollo’s evaluation of operational data, interviews with operations staff, and inspection of the plant, Carollo identified recommended changes to the chemical feed systems associated with the pre-treatment process. At CDA’s request, Carollo prepared plans and specifications for modifications to existing chemical storage and metering systems to allow implementation of the recommended process changes to the chemical feed strategy. CDA also requested Carollo design improvements to the RO brine piping system. These improvements will allow more operational flexibility by providing a means to simultaneously direct primary RO concentrate flow to both the CRF and brine line discharge.

Immediate construction of these facilities is necessary to restore operating capacity at the CRF to provide contracted water deliveries. On September 5, 2019 CDA Board of Directors approved a contract award to Pascal & Ludwig for construction of the CRF improvements identified above. The work requires competent inspection oversight and engineering support to ensure its successful and timely completion. CDA staff requested the attached proposal from Carollo to provide engineering support during construction and inspection services. Carollo’s intimate knowledge of the CRF and its operation makes Carollo Engineers uniquely qualified to perform these services for CDA.

Since the CRF began operating, Carollo Engineers has worked closely with CDA to find solutions to optimize the operation of the CRF. Carollo’s costs for evaluation of the CRF, determination of recommended plant modifications, preparation of construction documents for bidding, bidding

Prepared by: Tom O’Neill, CDA General Manager/CEO Page 1 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date: assistance, and post-bidding assistance has, to date, been borne by Carollo. The proposed construction phase services budget provided herein includes discounted hourly rates in an effort to continue a successful partnering relationship with CDA, to achieve the best performance of the CRF.

This item was reviewed and approved by the Finance Committee on September 19, 2019 and Technical Advisory Committee on September 24, 2019.

IMPACT ON BUDGET: Funding for the professional services agreement will be transferred to the CDA by the Sponsor Group.

ATTACHMENT: Carollo Engineers proposal, dated September 12, 2019

Prepared by: Tom O’Neill, CDA General Manager/CEO Page 2 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

3400 Central Avenue, Suite 205, Riverside, California 92506 P. 951.776.3955 F. 951.776.4207

September 12, 2019

Mr. Tom O'Neill, General Manager Chino Basin Desalter Authority Suite 202 2151 S. Haven Avenue Ontario, CA 91708 Subject: Chino Desalter Phase 3 Expansion - Concentrate Reduction Facility Modifications Proposal to Provide Engineering Services During Construction (ESDC), Inspection Services, and Field Engineering Services

Dear Mr. O'Neill: The Chino Basin Desalter Authority (CDA) is sending out for construction bids the Chemical Storage and Metering System Modifications and Primary RO Concentrate Piping Modifications project. At your request, Carollo Engineers, Inc. (Carollo) is submitting this proposal to provide Engineering Services During Construction (ESDC), construction inspection services, and field engineering services for the project. Based on the construction bid documents, we understand that the construction project is scheduled to start early October of 2019 and complete by end of November of 2019. These dates were used to estimate the duration of some of the tasks below and cover a two-month or sixty (60) calendar day construction project duration. Our Scope of Work and Fee Estimate (Table 1) are summarized below:

TASK 1 – PRE-CONSTRUCTION MEETING. Attend Pre-Construction Meeting The purpose of this meeting is to go over, with the contractor, CDA’s expectations of their work, CDA’s procedures for submittals, Requests for Information (RFIs), Requests for Deviations (RFDs), etc. as well as timely submission of work. This meeting will also give the contractor the opportunity to present their schedule for completing the work within the timeframe of the construction contract.

TASK 2 – REVIEW SHOP DRAWINGS A. Submittal Reviews Carollo will review each shop drawing and working drawings of manufacturers and contractors for substantial conformity with the contract documents. We will coordinate the submittal reviews closely with CDA throughout the construction to ensure the conformance with bid documents. For estimating purposes, we have included a total of ten (10) submittals and resubmittals for this project.

TASK 3 – REVIEW/RESPOND TO REQUESTS FOR INFORMATION (RFIs) A. RFI Responses We will review each RFI for completeness and for contract conformance. Those documents that do not satisfy the specifications will be returned with a copy to CDA.

Mr. Tom O'Neill September 12, 2019

Page 2

Carollo’s Project Manager, Vincent Roquebert, will check the response from our engineering support staff to make certain that the answer to the RFI is complete and that it avoids a potential change to the contract. If it appears that a change is required, it will be discussed with CDA to determine the most appropriate course of action. We will perform these reviews in a timely fashion within the time allowed by contract in order to stay on schedule and on budget. For estimating purposes, we have included a total of ten (10) RFI’s to be responded for this project.

TASK 4 – REQUESTS FOR DEVIATION (RFDs) A. RFDs Reviews and Responses Carollo will attend meetings and negotiations with the contractor involving change orders. We will provide cost estimating expertise to help evaluate change order costs. For estimating purposes, we have included a total of one (1) RFD to be responded for this project. Our scope of work does not include any time for owner initiated changes.

TASK 5 – CONSTRUCTION INSPECTION AND FIELD ENGINEERING SERVICES A. Construction Inspection and Field Engineering Services Carollo will provide construction inspection and field engineering services during the construction phase of the project. For this task, Carollo will provide one (1) full time inspector. Carollo’s inspector will be responsible for daily reports, periodic progress reports, maintain current markup of contactors as-builts, and field engineering services to support contractor's work and progress. To achieve Task 5, we have selected a staff professional with experience in both construction and engineering, Pablo Marti, who will be supported by our engineering staff, and project manager. Based on a two (2) month project construction duration, we have included a total of 180 hours of inspector time and 20 hours of administrative help. This estimate corresponds to a one-month work preparation and submittal approval period followed by a one-month field construction period for the construction project.

TASK 6 – AS-BUILT PLANS A. Prepare As-Built Plans At the completion of construction, Carollo will prepare a set of as-built plans. The as-built plans will include changes made to the original plans and specifications during construction including RFIs and RFDs changes. CDA will provide a set of contractor’s marked up plans to Carollo prior to beginning of this task. Our proposal assumes the as-built plans will be prepared immediately after the completion of construction.

TASK 7 – MEETINGS AND SITE VISITS A. Attend Meetings Carollo will attend the following meeting during the construction phase of the project: • One 4-hour construction kickoff meeting • Bi-weekly conference call meetings (assumed 4 calls, 1 hour each) • Site visits by project manager (assumed 2 half-day site visits)

carollo.com Mr. Tom O'Neill September 12, 2019

Page 3

Carollo’s scope of work does not include preparation of meeting agendas and meeting minutes.

TASK 8 – PROJECT MANAGEMENT AND QA/QC A. Project Management This task addresses the management responsibilities associated with proper scheduling, budget control, invoice preparation and coordination with CDA. Carollo’s project manager will review the status of budget, schedule and relevant project issues together on a weekly basis. Our project manager will provide project status updates via email to CDA’s designated project manager on a bi-weekly basis. These bi-weekly status updates will be used to confirm work progress, identify critical information needs, and where appropriate alert CDA to any potential issues which may impact the project scope, schedule or budget. These bi-weekly project status updates will be supplemented with monthly project status reports that will be prepared and distributed along with Carollo’s invoices. B. Technical Review and Quality Management Carollo will provide quality management (QM) reviews through the course of the project consistent with CDA’s policies. Our QM procedures establish and maintain a structure for providing reviews of all work products and adherence to industry design standards. All work product deliverables, including detailed checking of work by in-house staff will be reviewed prior to submittal to CDA.

Table 1 – Fee Estimate, on the following page, shows our estimated fee for the services described above. The requested fee for the above listed scope of work, amount is $93,880.00 (ninety three thousand and eight hundred and eighty dollars). Carollo appreciates the opportunity to work with CDA on this important project. Should you have any questions, please contact Vincent Roquebert at (949) 922-4279.

Sincerely,

CAROLLO ENGINEERS, INC.

Vincent Roquebert, PE Eric Mills, PE Senior Design Manager Client Services Director Vice President Senior Vice President cc:

carollo.com Mr. Tom O'Neill September 12, 2019

Page 4 Table 1 - Fee Estimate

Chino Basin Desalter Authority Carollo Fee Estimate ESDCs and Inspection Services for Chino Desalter Phase 3 Expansion - Concentrate Reduction Facility Modifications

Standard Hourly Billing Rate $306 $283 $222 $181 $191 $140 $137 $120

Discounted Hourly Billing Rate $274 $261 $190 $135 $142 $103 $119 $64

Task TASK DESCRIPTION No. TOTAL HOURS HOURS TOTAL COST LABOR Communication and Equipment Project hour) labor per Expense [PECE] ($12.00 COSTS DIRECT OTHER Subconsultants and on ODCs Markup FEE PROJECT TOTAL Senior Professional Senior Professional Lead Project QA/QC Professional Professional Assistant CADSenior Technician CAD Technician Administrator Senior Clerical 1.0 Pre-Construction Meeting 4 0 0 8 0 0 0 2 14 $ 2,306 $ 168 $ 58 $ - $ 2,532 A Attend a Pre-Construction Meeting 4 8 2 14 $ 2,306 $ 168 $ 58 $ - $ 2,532 2.0 Review Shop Drawings 2 0 10 40 0 0 0 10 62 $ 8,501 $ 744 $ - $ - $ 9,245 A Submittal Reviews up to 10 submittals and resubmittals 2 10 40 10 62 $ 8,501 $ 744 $ - $ 9,245 3.0 Review and Respond to RFIs 5 0 10 20 0 0 0 10 45 $ 6,617 $ 540 $ - $ - $ 7,157 A RFI Responses up to 10 5 10 20 10 45 $ 6,617 $ 540 $ - $ 7,157 4.0 Request for Deviations (RFDs) 4 0 8 16 0 0 0 2 30 $ 4,907 $ 360 $ - $ - $ 5,267 A RFD Review and Respond up to 1 4 8 16 2 30 $ 4,907 $ 360 $ - $ 5,267 5.0 Construction Inspection and Field Engineering Services 8 0 40 180 0 0 20 0 248 $ 36,515 $ 2,976 $ 1,716 $ - $ 41,207 A Construction Inspection and Field Engineering 8 40 180 20 248 $ 36,515 $ 2,976 $ 1,716 $ - $ 41,207 6.0 As-Built Plans 5 0 0 50 0 50 0 0 105 $ 13,283 $ 1,260 $ - $ - $ 14,543 A Prepare As-Built Plans up to 50 5 50 50 105 $ 13,283 $ 1,260 $ - $ 14,543 7.0 Meetings and Site Visits 12 0 0 4 0 0 0 2 18 $ 3,954 $ 216 $ 116 $ - $ 4,286 A Attend Meetings (by-weekly calls, monthly site visits) 12 4 2 18 $ 3,954 $ 216 $ 116 $ - $ 4,286 8.0 Project Management and QA/QC 16 8 0 0 8 0 8 8 48 $ 9,068 $ 576 $ - $ - $ 9,644 A Project Management 16 8 24 $ 4,894 $ 288 $ - $ 5,182 B Technical Review and QA/QC 8 8 8 24 $ 4,173 $ 288 $ - $ 4,461 TOTAL 56 8 68 318 8 50 28 34 570 $ 85,150 $ 6,840 $ 1,890 $ - $ 93,880

carollo.com

Board of Directors Meeting

Agenda Item No. 11

Agenda Report September 26, 2019 SECTION: ACTION ITEM

SUBJECT: COUNTY OF SAN BERNARDINO AGREEMENT REGARDING JOINT FACILITY DEVELOPMENT

RECOMMENDATION: Staff recommends that the Board: 1. Approve the agreement with the County of San Bernardino; and 2. Authorize the General Manager/CEO to execute the agreement, subject to non-substantial revisions.

BACKGROUND: Chino I Desalter wells Nos. I-1, I-2, I-3, I-4, I-17 and I-18, are currently out of service due to groundwater exceeding State Standards for volatile organic compounds (VOC’s). Wells Nos. I-1 through I-4 are located on leased Chino Airport property and per the lease, the Chino Basin Desalter Authority (CDA) is obligated to pay for treatment for any hazardous substances pumped from these wells. Wells I-17 and I-18 are located downgradient of the airport and were constructed as part of the Phase 3 Expansion Project. CDA and County of San Bernardino (County) staff, working with their legal counsels, have developed a SA to address the VOC contamination in the CDA wells that is emanating from the Chino Airport property.

The Agreement outlines the cooperative treatment arrangement between the CDA and the County as it relates to the design, construction, permitting, operations and maintenance of a treatment plant, onsite and offsite County and CDA wells, and necessary conveyances for the Chino Airport Groundwater Remedial Project. Through this Agreement, CDA is assisting the County in the remediation efforts required under Clean-up and Abatement Order No R8-2017-0011 issued to the County by the Regional Water Quality Control Board – Santa Ana Region (Water Board) on January 11, 2017. The remediation efforts facilitate the treatment of groundwater contamination on and around Chino Airport (the plume) and allows for the ultimate beneficial use of treated water through CDA’s drinking water system.

The Agreement also provides that a new treatment plant will be built on land owned by CDA and will be designed utilizing a two-unit Granular Activated Carbon (GAC) system, whereby water originating from CDA wells I-1, I-2, I-3 and I-4 will be treated through the CDA GAC unit and the County’s extraction wells, and CDA wells I-16, I-17 and I-18 will be treated through the County GAC unit. Water from the County GAC unit will receive additional treatment for nitrates and TDS at the Chino I Desalter. This allows for greater efficiency in operation and maintenance due to varying requirements for treatment of the water, and a better ability to conduct separate cost accounting.

Prepared by: Thomas O’Neill CDA General Manager/CEO Page 1 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

Pursuant to the Agreement, the County will pay for the design, construction, operation and maintenance of the County’s GAC unit, extraction wells, and conveyance pipelines. The County has agreed to reimburse CDA $350,000 for costs already incurred by CDA for drilling work and equipment related to CDA wells I-17 and I-18, which are impacted by the VOC plume. It is also anticipated that the County will deliver about 1,300-acre feet of water per year to the Chino I Desalter. CDA will pay for the design, construction, operation and maintenance of CDA’s GAC unit and operation and maintenance of CDA wells I-1, I-2, I-3, I-4, I-16, I-17, and I-18.

This item was reviewed and approved by the Technical Advisory Committee on September 10, 2019 and Finance Committee on September 19, 2019.

IMPACT ON BUDGET: The Adopted FY 2019/20 budget has a total of $850,000 earmarked for this project.

ATTACHMENT 1) Agreement between the County of San Bernardino and the Chino Basin Desalter Authority

Prepared by: Thomas O’Neill, CDA General Manager/CEO Page 2 of 2

Board of Directors: [ ] Approved [ ] Continued [ ] Denied

CDA GM/CEO Acknowledgement: Date:

AGREEMENT

THIS AGREEMENT is made by and between the County of San Bernardino and the Chino Basin Desalter Authority, (collectively referred to herein as the “Parties,” and each of them singularly referred to herein as a “Party”) and shall be deemed entered and effective as of the Effective Date as defined below.

DEFINITIONS

“Agreement” means this Agreement.

“Airport GAC Treatment Plant” means a treatment system onsite at the Chino Airport (to remove VOCs from the water pumped from the Onsite County Wells) that the County may in the future build and operate.

“Annual Operation Plan” means the operation plan(s) and budget to be developed by the Parties for the succeeding Fiscal Year pursuant to Section IV.B of this Agreement and in the form attached hereto as Attachment “A.”

“CAO” means Cleanup and Abatement Order No R8-2008-0064, as amended by R8-2017-0011 (concerning the Chino Airport Plume).

“Capital Costs” means the cost to design, permit and construct the treatment plants, conveyance lines, extraction wells and related infrastructure.

“CDA” means the Chino Basin Desalter Authority, a Joint Exercise of Powers Agency formed between its member agencies Jurupa Community Services District, the Santa Ana River Water Company, the Cities of Chino, Chino Hills, Norco and Ontario, Western Municipal Water District and the Inland Empire Utilities Agency.

“CDA Wells” means collectively the CDA Wells I-1, I-2, I-3, I-4, I-16, I-17 and I-18, as depicted generally on Figure 1.

“Chino Airport” means that general aviation facility, formerly known as Cal Aero Field located at 7000 Merrill Ave, Chino, CA 91710, which is owned and operated by the County and consists of approximately 1,100 acres of land, bounded by Merrill Avenue to the north, Grove Avenue to the east, Kimball Avenue to the south, and Euclid Avenue to the west.

“Chino Basin” means the Chino Groundwater Basin as described in the Judgment.

“Chino I Desalter” and “Chino I Desalter Plant” mean an existing brackish water desalination treatment system (including reverse osmosis, ion exchange, and air stripping) operated by CDA in the vicinity of the Chino Airport to remove TDS, nitrates, and other constituents from groundwater.

“CDA’s Chino I GAC Treatment Plant” means a GAC treatment system and associated on-site piping capable of removing VOCs from the water pumped by the Group I Wells to be designed, constructed and operated pursuant to the terms of this Agreement.

“Chino I GAC Treatment Plants” means the CDA’s Chino I GAC Treatment Plant and the County’s Chino I GAC Treatment Plant.

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“Chino I Combined Treatment Plant” means the Chino I Desalter Plant and the Chino I GAC Treatment Plants.

“CBWM” means the Chino Basin Watermaster.

“Certificate of Project Completion” means the certificate issued when (i) all conditions for Project Completion have been met and (ii) all nonconforming work has been corrected. As used in this definition, “Project Completion” means when the contractor has completed all design and construction work, including correction of nonconforming work and completion of punchlist items (and if applicable, a certification from the project quality manager certifying conformity with the design; conditions of acceptance from other local agencies, utilities, have been satisfied). If so required in the CDA contract, Project Completion also includes the recording of a notice of completion pursuant to Civil Code section 8182 and 9200.

“Contaminants” means (a) any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”) (42 U.S.C. §9601 et seq.) (as “hazardous substance” as now or hereafter defined in Section 101(14) of CERCLA or any regulations promulgated under, or as a pollutant or contaminant as now or hereafter defined in Section 101(33) of CERCLA or any regulations promulgated under CERCLA); under the Resource Conservation and Recovery Act, as amended (“RCRA”) (42 U.S.C. §6901 et seq.)., the Hazardous Materials Transportation Act, Title 49 U.S.C. §1801, et seq., the Toxic Substances Control Act, Title 15 U.S.C. §2601, et seq.; the Clean Water Act, Title 33 U.S.C. §1251, et seq.; the California Hazardous Waste Control Act, Health and Safety Code §25100, et seq., the California Hazardous Substances Account Act, California Health & Safety Code§25249.5, et seq.; the California Hazardous Waste Management Act, California Health & Safety Code §25501, et seq. (Hazardous Materials Response Plan and Inventory); or the California Porter-Cologne Water Quality Control Act, California Water Code §1300, et seq., all as amended from time to time; (b) any additional substance, material or waste (A) the presence and concentration of within, about, at, below or from the Site that (i) requires reporting, investigation or remediation under any environmental laws, (ii) causes or threatens to cause a nuisance and poses or threatens to pose a hazard to the health and safety, or (iii) which, if emanated or migrated within, about, below at or from the Site, would constitute a trespass, or (B) which is determined by any governmental authority with jurisdiction thereof to pose a present or potential hazard to human health or the environment.

“County” means the County of San Bernardino.

“County’s Chino I GAC Treatment Plant” means a GAC treatment system and associated on-site piping capable of removing VOCs from the water pumped by the Group II Wells to be designed, constructed, and operated by CDA and owned by the County pursuant to the terms of this Agreement.

“County Wells” means the Onsite County Wells and Offsite County Wells.

“Days” means calendar days unless identified as business days.

“DDW” means the State Water Resources Control Board Division of Drinking Water.

“Effective Date” means the last day this Agreement is executed by a Party.

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“Extraordinary Costs” means those O&M Costs anticipated to be in excess of $50,000 for a particular repair or annual cost item.

“Financial Records” mean those books, records, accounts, data, computer records, files and data and supporting documents maintained for financial management of the design, construction and O&M of the facilities that are the subject of this Agreement.

“Fiscal Year” means the one-year period commencing on July 1 and continuing through June 30.

“GAC” means granular activated carbon used in filter vessels to treat water.

“GAC Costs” means the cost of the replacement GAC, labor for the change-out, and GAC disposal.

“GAC Treatment Costs” means costs which include, but are not limited to: (i) capital costs to design and construct the Chino I GAC Treatment Plants and connect the County Wells and CDA Wells thereto; (ii) permitting costs; and (iii) the costs to operate and maintain the South West Wells and Chino I GAC Treatment Plants to meet applicable regulatory levels for VOCs, but excludes costs of separate treatment of such water for TDS and/or nitrates.

“GAC Treatment Standards” means collectively, state and federal drinking water standards, including but not limited to those standards as specified by the DDW or such other agency as may be responsible to establish potable drinking water standards for TCE, TCP, 1,1-DCE, 1,2-DCA and c-1,2-DCE. GAC Treatment Standards do not include or address separate treatment for TDS or nitrates.

“GPM” means gallons per minute.

“Group I Wells” means CDA Wells I-1, I-2, I-3, and I-4.

“Group II Wells” means CDA Wells I-16, I-17 and I-18, the Offsite County Wells, and the Onsite County Wells.

“IRAP” means an Interim Remedial Action Plan implemented pursuant to the CAO and adopted by the RWQCB.

“Judgment” means the Chino Basin Watermaster Judgment, San Bernardino Superior Court Case No. RCV 51010 (dated October 26, 1989 formerly in Chino Basin Municipal Water District v. City of Chino, Superior Court of the State of California, County of San Bernardino, Case No. 164327).

“Lease” means the lease dated December 10, 1996 as last amended January 29, 2002 between the County and SAWPA for sites and easements pertaining to Wells I-1, I-2, I-3 and I-4, assumed by the CDA.

“Normal Operating Conditions” mean, operating on a reasonably continuous basis to produce sustainable well yield rates identified in this Agreement. Normal operating conditions also include scheduled plant shutdowns 10% of the year for maintenance activities. Wells I-1 thru I-4, I-16, I-17 and I-18 annual production with 10% downtime is 2,500 AF.

“O&M” means the activities of operating, monitoring, and maintaining any wells and/or treatment plants to ensure compliance with all permits, RWQCB mandates and DDW requirements as may be necessary now and/or in the future whose use and operation is related to or arising out of this

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Agreement.

“O&M Costs” means the costs to perform O&M, including fully-burdened personnel costs and actual costs for electricity, testing, consumables, including but not limited to GAC filter media, disposal and other costs to operate the Project.

“Offsite County Wells” means wells to be installed and owned by the County located offsite of the Chino Airport including Wells EW-6, EW-7, EW-8, EW-9, EW-10, as generally depicted on figure 1.

“Onsite County Wells” means wells to be installed and owned by the County located onsite of the Chino Airport, including wells [EW-1, EW-2, EW-3, EW-4, and EW-5], as generally depicted on figure 1.

“Other treatment costs” include but are not limited to O&M Costs for the chlorination system referenced herein, O&M Costs for the Chino I Desalter, treatment for TDS and nitrates, the costs associated with standard drinking water monitoring, water delivery, and other costs.

“Peace II Agreement” means the Peace II Agreement: Party Support For Watermaster’s OBMP Implementation Plan, - Settlement And Release Of Claims Regarding Future Desalters dated in or about 2008.

“Project” means the design, construction, O&M of the project described in the IRAP, including any amendments to the IRAP, modifications made during the design phase as well as the treatment of water from CDA Wells I-16, I-17, and I-18 for VOCs, and any change orders associated therewith, which project activities include, but are not limited to, desalting portions of the Chino Basin and treatment and remediation of the Chino Airport Plume. The term “Project” shall include all projects that relate to, arise out of or supplement the work done pursuant to Project. Project also includes any expansion phases of the Project that may occur in the future, whether presently known or unknown.

“Project Records” means all records, plans, blueprints, work plans, diagrams, log books, data, sampling, testing and investigation records, computer records, files and data, reports, and all other information and documents relating to the location, design, construction and O&M of the Chino I GAC Treatment Plants and related conveyance lines, extraction wells and/or related infrastructure contemplated by this Agreement, and the supporting external systems including piping and environmental testing and/or quality assurance records, in compliance with DDW water quality standards and/or Regional Board requirements, and as normally kept for the purposes of design, construction and O&M for such Chino I GAC Treatment Plants and related conveyance lines, extraction wells and related infrastructure.

“RWQCB” means the Regional Water Quality Control Board Santa Ana Region.

“Replenishment Costs” means costs associated with “Replenishment Water”, as that term is defined by the Judgment, meaning “supplemental water used to recharge the Basin pursuant to the Physical Solution, either directly by percolating the water into the Basin or indirectly by delivering the water for use in lieu of production and use of safe yield or Operating Safe Yield”, and also includes those costs, charges, replenishment assessments, or fees the CBWM or other entity may seek or which is allocated to individual agencies, arising out of the extraction of groundwater from the Chino Basin and the need, if any, to replenish the water that has been extracted.

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“SAWPA” means the Santa Ana Watershed Project Authority.

“Series Configuration System” means the GAC treatment system using primary and secondary carbon treatment vessels installed in series or lead/lag series orientation. Once carbon is spent in the lead vessel, it shall be replaced with fresh carbon and the orientation of the vessels shall be switched via a valving/piping header. After the change-out, the former lag vessel shall become the new lead vessel and vice versa.

“SouthWest Wells” means, collectively the Offsite County Wells and the CDA Wells.

“TCE” means trichloroethene.

“TCP” means 1,2,3-trichloropropane.

“TDS” means total dissolved solids.

“Treated Water” means water meeting the GAC Treatment Standards produced by the Project.

“VOCs” means, volatile organic compounds.

“VOC-treated water” means, groundwater treated to remove VOCs.

“1,1-DCE” means, 1,1-dichloroethene.

“1,2-DCA” means1,2-dichloroethane.

“c-1,2-DCE” means, cis-1,2-dichloroethene.

RECITALS

A. Whereas, CDA purifies groundwater extracted from the lower Chino Basin and distributes the drinking water to member agencies. The mission of the CDA is to provide its member agencies with contract deliveries of potable water meeting contract-specified water quality objectives at an annually-approved cost.

B. Whereas, CDA operates the Chino I Desalter to remove TDS, nitrates, and other constituents from groundwater.

C. Whereas, CDA has installed and now operates extraction wells in the vicinity of the Chino Airport to remove TDS and nitrates from the Chino Basin, but CDA reports that certain of these wells (I-1, I-2, I-3, I-4, I-17 and I-18) now have some level of VOC contamination that requires treatment using GAC, and that well I-16 may in the future require treatment for VOCs.

D. Whereas, the CDA previously assumed the Lease between the County and SAWPA on behalf of SAWPA for certain sites and easements. That Lease obligates the lessee to pay for the treatment of hazardous substances pumped from the wells that are the subject of the Lease, including but not limited to four wells located on or near Euclid Avenue (referred to herein as Wells I-1, I-2, I-3 and I-4). Consistent with that lease obligation, the County and CDA intend for CDA to be responsible for the costs of

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treating VOCs and other substances requiring treatment in water pumped from Wells I-1, I-2, I-3 and I-4, to the extent such treatment is required.

E. Whereas, the County is implementing a response action to respond to the release and threatened release of VOCs alleged to be emanating from the Chino Airport property, pursuant to the CAO and the County anticipates that the response action will involve the installation and operation of certain extraction wells both at the Chino Airport (the Onsite County Wells) and offsite of the Chino Airport (Offsite County Wells), following the adoption of the IRAP by the RWQCB.

F. Whereas, the County anticipates that it will install and arrange for pumping and treating of water from County Wells as part of a County response action pursuant to the RWQCB CAO (concerning the Chino Airport Plume). The operation of the County Wells, together with CDA Wells, will aid CDA in adding raw water supply reliability for the Chino I Desalter.

G. Whereas, the Parties intend that the SouthWest Wells and the County Onsite Wells will be connected to a new Chino I GAC Treatment Plant using GAC that will be capable of removing VOCs from the water pumped from those wells. If in the future, County elects to construct and operate a separate treatment system at the Chino Airport for the Onsite Wells, the water pumped from the Onsite County Wells will be treated at such a plant for VOCs.

H. Whereas, the Parties intend to allocate the cost of treating the VOCs in groundwater with the County paying the GAC Treatment Costs incurred at the County’s Chino I GAC Treatment Plant and CDA paying the GAC Treatment Costs incurred at the CDA’s Chino I GAC Treatment Plant.

I. Whereas, the Parties intend that, following the VOC treatment at the County’s Chino I GAC Treatment Plant, the water extracted by the Group II Wells will be conveyed to the Chino I Desalter where CDA will treat the water to remove TDS and nitrates from the pumped and VOC treated groundwater. The Parties intend that the capital and O&M cost of such treatment shall be borne by the CDA at no cost to the County; provided, however, if the CDA demonstrates that the concentrations of TDS and/or nitrates from the County Wells is materially worse in quality than the water from the combined influent of the CDA (such that the cost of TDS and/or nitrate treatment would be substantially and materially higher than treating a similar volume of water from the CDA Wells), the Parties intend to meet and confer, pursuant to Section XIV.A of this Agreement, to reach agreement on an equitable cost share for such incremental costs, as set forth herein.

J. Whereas, the County may in the future build and operate the Airport GAC Treatment Plant to be connected to the Onsite County Wells. If the County, at its sole election, decides to and does construct such a plant, the Parties intend that, as between CDA and the County, the County will pay the capital costs, pumping costs and all other O&M costs associated with operating the Onsite County Wells and treating VOCs from the Onsite County Wells connected to that system.

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K. Whereas, notwithstanding any provisions of this Agreement to the contrary, as of the Effective Date, CDA is not the named discharger in any order issued by the RWQCB.

L. Whereas, the County shall be responsible for pumping costs for the Offsite County Wells and Onsite County Wells and CDA shall be responsible for the pumping costs for the CDA Wells.

NOW, THEREFORE, the Parties acting in good faith and desiring to reach an agreement, and in their mutual belief that this Agreement is in the public’s best interest, and in consideration of the execution of this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, agree as follows:

I. INCORPORATION OF RECITALS AND DEFINITIONS

The Recitals and Definitions set forth above are incorporated by reference and made part of this Agreement as if set forth in full herein.

II. DESIGN, CONSTRUCTION AND PERMITTING OF TREATMENT PLANTS, WELLS, INFRASTRUCTURE AND CONVEYANCE

A. The Parties expressly acknowledge and agree that the design, operation and maintenance of all facilities contemplated by this Agreement shall at all times be subject to review, approval and conformance with the permits and/or other requirements established by CDA, DDW and the RWQCB provided that CDA shall not unilaterally impose any requirements on the County that are inconsistent with the terms and provisions of this Agreement.

B. Chino I GAC Treatment Plants

1. CDA will design, permit and construct on approximately 0.2 acres of land owned by the CDA, the County’s Chino I GAC Treatment Plant and associated infrastructure to remove VOCs from the water conveyed to the Chino I GAC Treatment Plant from the Group II Wells.

2. CDA will design, permit and construct the CDA’s Chino I GAC Treatment Plant and associated infrastructure and conveyances to connect the Group I CDA Wells to the CDA’s Chino I GAC Treatment Plant.

3. CDA will design, permit and construct infrastructure and conveyances to connect the Chino I GAC Treatment Plants to the Chino I Desalter Plant so as to form the Chino I Combined Treatment Plant.

4. CDA shall design, permit and construct the Chino I GAC Treatment Plants, including a Series Configuration System with primary and secondary treatment vessels in a cost-effective manner and in a manner that minimizes the costs of the Project. The Parties agree to utilize the following information sharing to facilitate collaboration on construction issues and modifications.

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a. CDA shall provide draft reports and designs to the County for the 30% design, 60% design and 90% design stages of the County’s Chino I GAC Treatment Plant and provide the County 15 business days to review and comment on each.

b. Following completion of the construction, CDA shall provide as-built drawings of the County’s Chino I GAC Treatment Plant to the County.

c. CDA agrees to consider the County comments on the draft reports and designs provided pursuant to Section II.B.4.a, above in good faith. If CDA does not agree with comments provided by the County, CDA and the County shall meet and confer, pursuant to Section XIV.A and, if the Parties fail to resolve their dispute, either party may terminate this Agreement pursuant to Section XIV.C hereof.

5. The County will design, permit and construct the Offsite County Wells, the Onsite County Wells, as well as the conveyance and other infrastructure necessary to connect such wells to the Chino I GAC Treatment Plant. The County agrees to provide CDA 15 business days to review and approve such design, which approval shall not be unreasonably withheld.

6. CDA and the County will complete the design, construction and permitting as required by this section by no later than January 31, 2022, subject to the Force Majeure provisions of this Agreement.

7. The final design of the Project and each constituent element thereof shall be subject to review and approval by CDA, DDW and the RWQCB and permitting by DDW. If RWQCB comments on the design would lead to incremental capital costs beyond the requirements of DDW, the Parties shall meet and confer to resolve how to address such comments.

C. Airport GAC Treatment Plant

1. If and when the County decides to construct and operate the Airport GAC Treatment Plant to treat the Onsite County Wells at such plant rather than at the County’s Chino I GAC Treatment Plant, as between CDA and the County, the County shall be responsible to:

a. provide no less than 180 days’ notice to CDA prior to initiating such treatment;

b. design, permit and construct the Airport GAC Treatment Plant at the Chino Airport, using GAC treatment to remove VOCs from the water conveyed to the Airport GAC Treatment Plant from the Onsite County Wells;

c. Any disputes arising under this Section II shall be resolved pursuant to the Dispute Resolution provisions of Section XIV of this Agreement.

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III. O&M OF TREATMENT PLANTS, INFRASTRUCTURE, WELLS, AND CONVEYANCES

A. County’s Chino I GAC Treatment Plant

1. Once the County’s Chino I GAC Treatment Plant is constructed and operational, CDA will perform O&M on the Group II Wells and County’s Chino I GAC Treatment Plant under Normal Operating Conditions to treat water produced by the Group II Wells as follows and in the following priority:

a. The Offsite County Wells and Onsite County Wells at the rates specified in the final Remedial Design for the County Interim Remedy (and as those rates are modified over time); and

b. Well I-17 at a rate of no more than 225 GPM and Well I-18 at a rate of no more than 180 GPM.

2. In the event that CDA cannot operate the County’s Chino I GAC Treatment Plant under Normal Operating conditions (for example during GAC changeouts), CDA will use best efforts to restore the system to Normal Operating Conditions as soon as feasible.

3. CDA will operate the County’s Chino I GAC Treatment Plant in a manner that removes TCE, TCP, and other contaminants such as 1,1-DCE, c-1,2-DCE, and 1,2-DCA to meet GAC Treatment Standards.

4. If the County elects to construct the Airport GAC Treatment Plant, the County will be responsible to perform O&M on the County Onsite Wells and Airport GAC Treatment Plant.

B. Airport GAC Treatment Plant and Onsite County Wells

1. If the County elects to construct the Airport GAC Treatment Plant:

a. Once the plant is operational, the County will be responsible for performing the O&M of the Airport GAC Treatment Plant and Onsite County Wells.

b. CDA will remain responsible for performing the O&M of the SouthWest Wells, Chino I GAC Treatment Plants and Chino I Desalter Plant.

c. County shall not have the right to convey and CDA shall not have the obligation to accept at any CDA asset or facility any of the Treated Water produced by the Airport GAC Treatment Plant.

C. Operation of the Chino I Desalter and Distribution of Water from the Chino I Desalter

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1. CDA will perform O&M of the Chino I Desalter Plant, and remove TDS and nitrates from water delivered to that system from the County Wells, as long as (i) CDA continues to operate and maintain the County Wells, and (ii) the concentrations of TDS and nitrates from the County Wells are not materially worse in quality than the combined influent water from the CDA Wells (such that the cost of TDS and nitrate treatment would be substantially and materially higher than treating a similar volume of water from the CDA Wells). If the TDS and nitrates from the County Wells are materially worse in quality than the water from the CDA Wells, the Parties will meet and confer pursuant to Section XIV.A of this Agreement, to develop an equitable cost share for such incremental costs.

2. Distribution of Treated Water

a. CDA Wells: As between CDA and the County, CDA is entitled to distribute the Treated Water and is entitled to the proceeds, if any, from the transfer or use of such water.

b. County Wells:

(i) CDA will accept all water produced by the County from the Onsite County Wells and Offsite County Wells, subject to paragraphs (ii) and (iii) below. If the County is treating the Onsite County Wells at the Airport GAC Treatment Plant, CDA is not obligated to accept water from the Airport GAC Treatment Plant.

(ii) In February prior to each Fiscal Year, the County and CDA will meet and confer, pursuant to Section XIV.A of this Agreement, and agree to an Annual Operation Plan in the form attached hereto as Attachment “A,” including, but not limited to the volume of water each month of the upcoming fiscal year that the County intends to use on its own property using its own water rights and for which County shall be responsible for any and all Replenishment Costs. As part of this meet and confer, the Parties will discuss and evaluate ways to reduce O&M Costs from year to year.

(iii) The County can elect to reduce or terminate the volume of water from some or all of the County Wells that it provides to CDA by providing 180-day notice to CDA of such reduction or termination.

D. Project Monitoring

1. CDA shall be responsible for performing the monitoring that is required at the Chino I Combined Treatment Plant and at any production wells sending water to the Chino I GAC Treatment Plants, pursuant to its permits and as otherwise required.

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2. The County shall be responsible for performing the monitoring of its groundwater monitoring wells as required by the CAO.

3. If and to the extent CDA installs such wells in the future, CDA shall be responsible for performing the monitoring of its groundwater monitoring wells and as otherwise required for the Project.

4. The Parties recognize that it may be in the joint interest of the Parties to coordinate the data collection through a single contractor. The Parties may elect to negotiate such an arrangement, as appropriate, during the course of this agreement.

E. Any disputes arising under this Section III shall be resolved pursuant to the Dispute Resolution provisions of Section XIV of this Agreement.

F. CDA will use reasonable efforts to operate and maintain the facilities described in this Agreement efficiently, and to minimize the costs of operation and maintenance where feasible.

IV. MANAGEMENT OF PUMPING

A. Replenishment Costs for the groundwater extracted and provided to CDA are governed by the Peace II Agreement related to the management of the Chino Groundwater Basin.

B. Neither CDA nor the County anticipate that Replenishment Costs will be owed as a result of the pumping and treating of water as contemplated by this Agreement.

C. CDA shall manage pumping of its wells to the maximum extent reasonably feasible and practicable to seek to avoid risk to the County of paying for Replenishment Costs for the wells pumped pursuant to this Agreement.

D. In order to avoid the possibility of the County being responsible for Replenishment Costs as a result of CDA pumping and treating water pursuant to this Agreement, CDA will monitor and report to the County on a monthly basis the amount of water CDA has extracted for all of its operations (“Production Reports”).

E. If CDA determines based on the Production Reports that pumping required by this Agreement would trigger the need for the payment of Replenishment Costs, CDA shall notify the County, and provide the opportunity to the County to either (i) pay to CBWM, within the timeframe set by CBWM in its written notice or invoice therefor, the amount of such Replenishment Costs (or take responsibility to dispute such costs and pay them if payment is required following the resolution of such dispute); or (ii) provide written notice to CDA of its election to reduce or cease the pumping of the County Wells (“Reduction Notice”). Within thirty (30) days of CDA’s receipt of a Reduction Notice, CDA will (a) reduce or cease pumping of Wells per the terms of the Reduction Notice; (b) temporarily reduce pumping from other wells in the Chino I Desalter wellfield; or (c) elect to pay the Replenishment Costs itself.

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F. Any disputes arising under this Section IV shall be resolved pursuant to the Dispute Resolution provisions of Section XIV of this Agreement.

V. COST ALLOCATION

A. Capital Costs

1. Capital Costs for the Chino I GAC Treatment Plants:

a. The County and CDA will allocate the Capital Costs for the Chino I GAC Treatment Plants as follows:

(i) CDA will pay the costs for CDA’s GAC Chino I Treatment Plant and associated piping from the CDA Wells I-1, I-2, I-3 and I-4.

(ii) The County will pay the costs for the County’s Chino I GAC Treatment Plant and associated piping from the Offsite County Wells, the Onsite County Wells, and new piping as needed for CDA Wells I-16, I-17 and I-18. The County will also pay the costs of piping from the County’s Chino I GAC Treatment Plant to the Chino I Desalter Plant.

b. A preliminary Capital Cost budget for the Chino I GAC Treatment Plants is attached to this agreement as Attachment “B.” This budget is an engineer’s estimate of probable costs. The Capital Cost budget will be finalized in response to the awarded contract.

2. Capital Costs for the Onsite County Wells and Offsite County Wells: The County will be responsible for all costs associated with installing the Onsite County Wells and Offsite County Wells.

B. O&M Costs of Chino I GAC Treatment Plant

1. The Parties will allocate the GAC Costs based on the following:

a. The County will pay the GAC Costs for County’s Chino I GAC Treatment Plant;

b. CDA will pay the GAC Costs for CDA’s Chino I GAC Treatment Plant.

C. The form of annual budget for the GAC Costs, and the anticipated GAC Costs are included in the initial Annual Operation Plan attached to this Agreement as Attachment “A”.

1. Allocation of other GAC Treatment Costs (excluding the Capital Costs as allocated in Section V.A and GAC Costs as allocated in Section V.B.1, above):

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a. The County will pay the costs to operate the County’s Chino I GAC Treatment Plant

b. CDA will pay the costs to operate the CDA’s Chino I GAC Treatment Plant.

c. The foregoing costs exclude any costs that CDA would otherwise incur in operating the Chino I Desalter Plant and CDA Wells.

2. Costs of the County Wells: The County will pay the cost of the Onsite County Wells and Offsite County Wells, including but not limited to the cost of operating and maintaining the wells and all monitoring and pumping costs.

3. Costs of CDA Wells: CDA will pay costs of operating and maintaining Well I-16, I-17 and Well I-18 (excluding GAC Treatment costs) and the CDA Wells I-1, I-2, I-3 and I-4, including but not limited to the cost of operating and maintaining the wells, monitoring and pumping costs.

4. Other Treatment Costs: CDA will pay the cost of operating and maintaining the chlorination system, operating and maintaining the Chino I Desalter, separately treating for TDS and nitrates, and performing and paying for standard drinking water monitoring costs of produced water, water delivery, among other costs.

5. Within each above category, the costs include replacement costs associated with long-term depreciation of those systems.

D. The County will contribute $350,000.00 toward the capital cost of drilling and equipment for Well I-17 and Well I-18, which costs the Parties expressly acknowledge CDA has already incurred. This payment shall be made within 90 days of the Effective Date of this Agreement.

E. The County will pay the cost of operating and maintaining the Airport GAC Treatment Plant, if any.

F. If RWQCB or DDW mandates will cause incremental O&M costs over and above the obligations otherwise set forth in this Agreement, the Parties will meet and confer to resolve how to respond to and fund such mandates.

G. Any disputes arising under this Section V shall be resolved pursuant to the Dispute Resolution provisions of Section XIV of this Agreement.

VI. PAYMENT MECHANISM

A. Capital Costs. Following execution of this Agreement, County will deposit 110% of its share of the estimated Capital Costs in response to an invoice from CDA for such amount, sent after bids are received and prior to CDA Board award of the contract for such work. Upon request from the County, CDA shall provide appropriate backup documentation. Within 90 days after issuance of the Certificate of Project

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Completion by CDA, CDA shall provide a reconciliation of actual costs to the County, together with a refund of any amounts deposited in excess of actual costs (including any and all approved change orders) or an invoice reflecting the County’s share due in excess of its deposit, which invoice the County shall pay within 30 days of receipt.

1. Change Orders. In the event CDA determines that a change order in excess of five percent (5%) of the total preliminary capital cost budget attached hereto as Attachment “B” (“Approved Change Order”) is necessary, CDA shall provide notice to the County of the same, together with reasonable backup documentation establishing the need and propriety of the proposed Approved Change Order. County shall review and reasonably approve or disapprove the proposed Approved Change Order within five (5) business days of receipt thereof. In the event County disapproves the proposed Approved Change Order, County shall provide a detailed explanation of the reasons for its disapproval. Should County fail to approve or disapprove such proposed Approved Change Order within five (5) business days of receipt thereof, such proposed Approved Change Order shall be deemed approved. Within sixty (60) days of County’s approval or deemed approval of an Approved Change Order, County shall pay to CDA its share of such Approved Change Order allocated in accordance with Section V.A. hereof.

B. Operating Costs. County will pay O&M Costs for the County’s Chino I GAC Treatment Plant in two installments annually. The County shall pay CDA in advance, based on annual budgeted costs in response to invoices from CDA, following the completion of the budgeting process and reconciliation process, respectively.

1. No later than one hundred twenty (120) days prior to the start of each Fiscal Year, CDA shall prepare a reasonably detailed annual budget for routine and planned maintenance, pursuant to the Annual Operation Plan and provide such budget to the County for a 30-day review.

2. CDA agrees to consider any comments submitted by the County in good faith, and to meet and confer with the County, pursuant to Section XIV.A. of this Agreement, in the case of any disagreements on the proposed budget.

3. Following each Fiscal year, CDA shall provide an annual reconciliation for all costs applied to advance payments required to be paid by the County. The annual reconciliation shall be reasonably detailed. Upon request from the County, CDA shall provide appropriate backup documentation for the annual reconciliation statement, including but not limited to supporting invoices and time sheets and information to reasonably support the amounts claimed.

4. By May 1 of each year, CDA will provide County with an invoice for one-half of the annual budgeted O&M Costs, which invoice will be due by June 30. By November 1 of each year, CDA will provide County with an invoice for the other one-half of the annual budgeted O&M Costs, which will include a credit to the County for any unused funds from advance payment from the prior fiscal year or a debit of amounts due from the County for any amounts in excess of

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the budgeted amounts from the prior fiscal year, which invoice will be due by December 31.

5. Budget adjustments. In the event actual costs exceed budgeted amounts by 10% as of September 1 of any year, CDA may present a mid-year budget adjustment to County no later than September 15 of that year for a 30-day review. CDA agrees to consider any comments submitted by County in good faith, and to meet and confer with County, pursuant to Section XIV. A of this Agreement, in the case of any disagreements on the mid-year budget adjustment. Any amounts due from County pursuant to such budget adjustment shall be included in and paid by County as part of the November 1 invoice due to be paid on or before December 31.

C. In the event that CDA stops operating the County’s GAC Treatment Plant, CDA will refund the unused portion of any advance payment made by the County.

D. For Extraordinary Costs for a particular repair or annual cost item that would be at least in part the obligation of the County under this Agreement, CDA shall provide a reasonable opportunity, consistent with the circumstances requiring the expenditure of the Extraordinary Costs, for the County to comment on same. CDA agrees to consider any comments submitted by the County in good faith, and to the extent possible in light of the circumstances requiring the Extraordinary Costs expenditure, to meet and confer with the County pursuant to Section XIV.A of this Agreement, in the case of any disagreements.

E. CDA shall develop a replacement plan to address standard depreciation of County’s Chino I GAC Treatment Plant and provide a reasonable opportunity for the County to comment on such plan. CDA agrees to consider any comments submitted by the County in good faith, and to meet and confer with the County pursuant to Section XIV.A of this Agreement in the case of any disagreements on such plan.

F. Any disputes under this Section VI shall be resolved pursuant to the Dispute Resolution provisions of Section XIV of this Agreement.

VII. TERM

A. County’s Chino I GAC Treatment Plant

1. CDA will operate the County’s Chino I GAC Treatment Plant as long as any of the following conditions remain:

a. The operation is required for the CAO unless and until the County has developed and implemented a different response action under the CAO that does not require the operation of the County’s Chino I GAC Treatment Plant.

b. CDA is pumping or seeks to pump from either Well I-17 and/or Well I-18 and the pumped water from either Well I-17 and/or Well I-18 exceeds GAC Treatment Standards.

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c. If the County’s Chino I GAC Treatment Plant is no longer needed, the County shall remove it and restore the property to its prior condition unless CDA, at its sole and absolute discretion, notifies County in writing that it elects to purchase the equipment for a price to be negotiated in good faith and be responsible for its removal and/or disposition. In such an instance where the Parties reach such an agreement, the Parties will execute such documentation as is necessary to effectuate such a transfer.

This Agreement will be open for renegotiation prior to the expiration of the Peace II Agreement subject to the provisions of Section XXXI of this Agreement.

VIII. REPORTING

A. CDA will report data to the County on a quarterly basis, unless more frequent reporting is needed for the RWQCB by the County, including data regarding the volume treated, water quality data, utilities (annually), and other operational information as reasonably determined by the County. If such data is required more frequently than quarterly by the County due to RWQCB requirements, the County shall pay incremental costs of such more frequent reporting to CDA, unless such reporting requires CDA to change its operations or staffing in a material way. If the County monitoring request requires CDA to change its operations or staffing in a material way, the Parties agree to meet and confer about the request for more frequent monitoring.

IX. COOPERATION

A. The County and CDA will each, respectively, ensure that knowledgeable representatives are available to consult with DDW staff prior to and during the predesign activities for the Chino I GAC Treatment Plants.

B. CDA and the County recognize that implementation of the Chino I GAC Treatment Plants will require coordination and cooperation amongst them. The Parties will strive to coordinate and communicate with each other as reasonably necessary with respect to these activities.

C. The Parties acknowledge that in designing, constructing and/or operating the Chino I GAC Treatment Plants, the Chino I Desalter Treatment Plant, the SouthWest Wells or Onsite County Wells, or in taking any other actions pursuant to this Agreement, they will reasonably cooperate so as not to cause the other to be in violation of or out of compliance with RWQCB Order(s) or DDW operating permits.

X. INSURANCE

A. CDA’s Insurance Obligations

1. CDA shall secure insurance coverage, to the extent comparable insurance is not already in place (including self-insurance, to extent permitted by Government Code sections 990.4, 990.8 and similar or successor legislation), as follows:

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a. Occurrence-based Commercial General Liability insurance coverage:

(i) to be secured no later than 15 days following the Effective Date and maintained until the first anniversary of CDA’s termination of its participation in this Agreement;

(ii) with limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate;

(iii) that includes the County as an additional insured (including coverage within the products-completed operations hazard);

(iv) under which the insurer waives any right to subrogation as to claims against the County; and

(v) which applies on a primary and non-contributory basis.

b. Occurrence-based Automobile Liability insurance coverage (to the extent that CDA does not operate any vehicles, this requirement shall not apply to CDA (but it shall apply to its agents if such agents operate such vehicles):

(i) to be secured no later than 15 days following the Effective Date and maintained until the first anniversary of CDA’s termination of its participation in this Agreement;

(ii) with a per occurrence combined single limit of $2,000,000;

(iii) with each other Party included as an additional insured;

(iv) under which the insurer waives any right to subrogation as to claims against each other Party; and

(v) which applies on a primary and non-contributory basis.

c. Worker’s Compensation insurance: To be secured and maintained as required by all applicable laws and regulations.

d. Contractor’s Pollution Liability insurance:

(i) to be secured within 15 days following the Effective Date and maintained until termination of this Agreement;

(ii) with a per-occurrence combined single limit of $5,000,000.

e. Professional Liability insurance: In the event CDA or its agents uses professional engineering or land surveyor services in connection with the design, permitting, construction, and physical modification intended by this Agreement, CDA or its agents shall require the

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providers of such services to secure and maintain professional liability insurance with limits not less than $5,000,000 per claim covering negligent acts, errors, or omissions in the performance of such services. For a period of three years after the completion of its services, the professional engineering or land surveying contractor shall either maintain coverage or purchase an extended reporting period on the policy required by this Paragraph.

f. First-Party Property insurance:

(i) to be secured no later than 15 days following the Effective Date and maintained until the first anniversary of the CDA’s termination of its participation in this Agreement;

(ii) covering equipment and facilities contemplated as owned by CDA, including but not limited to the Chino I Combined Treatment Plant and CDA Wells and conveyances, in sufficient amounts to cover replacement value of the property involved.

B. County’s Insurance Obligations

1. The County shall secure insurance coverage, to the extent comparable insurance not already in place (including self-insurance, to extent permitted by Government Code sections 990.4, 990.8 and similar or successor legislation), as follows:

a. Occurrence-based Commercial General Liability insurance coverage:

(i) to be secured no later than 15 days following the Effective Date and maintained until the first anniversary of the County’s termination of its participation in this Agreement;

(ii) with limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate;

(iii) that includes each other Party as an additional insured (including coverage within the products-completed operations hazard);

(iv) under which the insurer waives any right to subrogation as to claims against each other Party; and

(v) which applies on a primary and non-contributory basis.

b. Occurrence-based Automobile Liability insurance coverage (to the extent that the County does not operate any vehicles, this requirement

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shall not apply to the County (but it shall apply to its agents if such agents operate such vehicles):

(i) to be secured no later than 15 days following the Effective Date and maintained until the first anniversary of the County’s termination of its participation in this Agreement;

(ii) with a per occurrence combined single limit of $2,000,000;

(iii) with each other Party included as an additional insured;

(iv) under which the insurer waives any right to subrogation as to claims against each other Party; and

(v) which applies on a primary and non-contributory basis.

c. Worker’s Compensation insurance: To be secured and maintained as required by all applicable laws and regulations.

d. Contractor’s Pollution Liability insurance:

(i) to be secured, in the event that the County performs construction, operation, and/or maintenance activities on any portion of the Airport GAC Treatment Plant, the County Wells, or any infrastructure or conveyance, at least 15 days prior to the commencement of such activities, and maintained until the completion of such activities;

(ii) with a per-occurrence combined single limit of $5,000,000.

e. Professional Liability insurance: In the event the County or its agents uses professional engineering or land surveyor services in connection with the design, permitting, construction, and physical modification intended by this Agreement, the County or its agents shall require the providers of such services to secure and maintain professional liability insurance with limits not less than $5,000,000 per claim covering negligent acts, errors, or omissions in the performance of such services. For a period of three years after the completion of its services, the professional engineering or land surveying contractor shall either maintain coverage or purchase an extended reporting period on the policy required by this Paragraph.

f. First-Party Property insurance:

(i) to be secured no later than 15 days following the Effective Date and maintained until the first anniversary of the County’s termination of its participation in this Agreement;

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(ii) covering equipment and facilities contemplated as owned by the County, including but not limited to the Airport GAG Treatment Plant and County Wells and conveyances in sufficient amounts to cover replacement value of the property involved.

XI. INDEMNITIES

A. The County shall defend (with counsel approved by CDA) indemnify and hold harmless CDA, its officials or officers, agents, employees, or successors, from claims made by third-parties as a result of (a) any failure of County to fulfill its obligations of this Agreement, the CAO, or any controlling order of the RWQCB directed at the County or (b) CDA’s operation of the County Offsite Wells consistent with direction from the County resulting in a third party claim against CDA alleging contaminant plume/contaminant migration. Notwithstanding the foregoing, the County is not obligated to provide the foregoing indemnities for CDA’s, its officials or officers’, agents’, or employees’, gross negligence or willful misconduct.

B. CDA shall defend (with counsel approved by County) indemnify the County, its officials or officers, agents, employees, or successors from claims made by third- parties as a result of any failure of CDA to fulfill its obligations under this Agreement or to comply with a requirement of its DDW permit. Notwithstanding the foregoing, the CDA is not obligated to provide the foregoing indemnities for the County’s, its officials’ or officers’, agents’, or employees’, gross negligence or willful misconduct.

C. The indemnities covered herein and contemplated by this Agreement are not intended to create any duty, obligation or right to any first-party indemnity, whether brought under contractual, equitable, or implied theories, and the Parties expressly waive any right to claim first-party indemnity against the other Party.

D. The rights, obligations, and agreement to indemnify regarding the Chino Airport and as contemplated by this Agreement and set forth in this section between CDA and the County, shall not supersede any prior rights, obligations, and agreements regarding indemnification regarding the Chino Airport between the Parties to the extent set forth in any other agreement, but are supplemental thereto.

XII. RELEASES

A. Except as otherwise set forth in this Agreement, CDA on behalf of itself and its officials or officers, agents, employees, or successors, for and in consideration of the covenants and agreements set forth herein, irrevocably releases, absolves and forever discharges the County, including its employees, officers, shareholders, representatives, agents, consultants, attorneys, and law firms, from (a) any past costs arising prior to the Effective Date incurred in connection with preparation of this Agreement and (b) any costs incurred in connection with this Agreement, subject to the reservation in XII.C, below.

B. County on behalf of themselves and their officials or officers, agents, employees, or successors, for and in consideration of the covenants and agreements set forth herein,

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irrevocably releases, absolves and forever discharges the CDA, including their employees, officers, shareholders, representatives, agents, consultants, attorneys, and law firms, from (a) any past costs arising prior to the Effective Date incurred in connection with the preparation of this Agreement and (b) any costs incurred in connection with this Agreement, subject to the reservation in XII.C, below.

C. Notwithstanding any other provision of this Agreement, the Parties expressly reserve the rights to enforce this Agreement and claims for breach of same.

D. IN ADDITION, EACH PARTY HEREBY ACKNOWLEDGES THAT THEY HAVE BEEN ADVISED BY THEIR LEGAL COUNSEL, RESPECTIVELY, AND ARE FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”

CDA AND THE COUNTY BEING AWARE OF THE FOREGOING CODE SECTION, HEREBY EACH EXPRESSLY WAIVE ANY RIGHTS THAT THEY MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 1542, AS WELL AS UNDER ANY SIMILAR PROVISIONS OF THE LAWS OF THIS OR ANY OTHER JURISDICTION WITHIN THE SCOPE OF THE RELEASE IN XII.A AND XII.B. THIS AGREEMENT SHALL IN ALL RESPECTS BE EFFECTIVE AND NOT SUBJECT TO TERMINATION OR RESCISSION BECAUSE OF ANY SUCH MISTAKEN BELIEF BY CDA OR THE COUNTY. CDA AND THE COUNTY ACKNOWLEDGE AND AGREE THAT THIS WAIVER IS AN ESSENTIAL AND MATERIAL TERM OF THIS AGREEMENT, AND THAT WITHOUT SUCH WAIVER, THIS AGREEMENT WOULD NOT HAVE BEEN ENTERED INTO BY THE PARTIES.

XIII. ACCESS

A. The County and all of its authorized representatives, agents, employees, contractors, and sub-contractors shall have the right to, during CDA’s regular business hours and while accompanied by CDA representative(s), enter and conduct such actions contemplated by this Agreement on CDA’s land at the County’s Chino I GAC Treatment Plant, and any access roads or appurtenances thereto at no cost to the County, its authorized representatives, agents, employees, contractors, and sub- contractors, or others upon reasonable prior notice to CDA.

B. The County and all of its authorized representatives, agents, employees, contractors, and sub-contractors shall have reasonable access during CDA’s regular business hours, while accompanied by CDA representative(s) and upon reasonable prior notice, to observe and review the construction and operation of the County’s Chino I GAC Treatment Plant by the CDA so that the County can verify that the construction and

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operations conform to the agreed design and specifications and the agreed operational requirements after plant construction. CDA will reasonably cooperate in the County’s effort to obtain access as required herein at no cost.

C. The CDA and all of its authorized representatives, agents, employees, contractors, and sub-contractors will have reasonable access during the County’s regular business hours, while accompanied by County representative(s) and upon reasonable prior notice, to observe and review the construction of the County Wells and associated conveyance lines so that the CDA can verify that the construction conforms to the agreed design and specifications for such construction and take such actions contemplated by this Agreement, other than those identified in paragraph XIII.D, while accompanied by County representative(s) and upon reasonable prior notice, and

D. The CDA and all of its authorized representatives, agents, employees, contractors, and sub-contractors will have reasonable access at all times during this Agreement (whether during the County’s regular business hours or after such hours) for routine operation, monitoring and maintenance of the County Wells and associated conveyance pipelines. For such activities, no notice or escort will be required.

E. For County Wells not located on the Chino Airport, the County will secure access for CDA consistent with paragraphs XIII.C and D. For such County Wells, CDA access rights shall be governed by the easement or other written agreement between the property owner and County.

F. The CDA shall not allow any third-party (excluding its authorized representatives, agents, employees, contractors, and sub-contractors) access to the County Wells without the County’s prior written consent, which consent shall not be unreasonably withheld or delayed, or conditioned.

G. In the event of an emergency, CDA, and its authorized representatives, agents, employees, contractors and subcontractors will have immediate access to the County Wells as necessary to address the emergency, provided that CDA provides notice via telephone and e-mail promptly following the occurrence of such emergency access.

H. The foregoing notwithstanding, CDA and its authorized representatives, agents, employees, contractors and subcontractors shall not enter the Chino Airport without first complying with the rules and regulations of the Chino Airport and the Federal Aviation Administration for access and activities thereon including, but not limited to, those related to airport security and airport operations.

I. Any access agreements necessary to allow for the construction contemplated by this Agreement, including but not limited to wells, plants, infrastructure, conveyance, or pipelines, will be negotiated in good faith by the Parties, will not require any additional payment not set forth in this Agreement as between the County and CDA, and upon execution in writing will be made part of this Agreement as of the Effective Date.

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XIV. MEET AND CONFER AND DISPUTE RESOLUTION

A. If there is any disagreement between the Parties, or if this agreement otherwise provides for the Parties to meet and confer, the Parties shall meet and confer and make good faith efforts to resolve the disagreement without it rising to the level of a formal dispute. The Parties may meet and confer as long and as many times as necessary in an attempt to resolve the issue or disagreement, so long as both Parties agree to continue to meet and confer. In the event the Parties cannot resolve the issue or disagreement, the matter shall be elevated to management for each Party, who will meet and confer in person in a continued good faith effort to resolve the issue or disagreement.

B. Any dispute arising under this Agreement shall be resolved as follows:

1. A dispute shall arise only upon one Party sending to the other Party a written Notice of Dispute, a copy of which must be delivered in accordance with the Section XV of this Agreement. A written Notice of Dispute shall be deemed received on the day personally served or, if served by mail, five business days after delivering to the United States Postal Service for delivery, postage prepaid. Such Notice of Dispute can only be sent following the completion of the meet and confer process identified in Section XIV.A, above.

2. The sending of a Notice of Dispute shall begin a period of for informal negotiations, which shall remain open for twenty-one (21) days from the date the Notice of Dispute is deemed received but including the first business day if the twenty-one (21) day period ends on a weekend or federal or state holiday in which the County offices are closed. This period may be extended by mutual written agreement of the Parties but may not be extended unilaterally.

3. During the initial twenty-one (21) day period for informal negotiations, and at least one-time every thirty (30) days during any extension of the period for negotiations, the Parties shall meet and confer in person, with knowledgeable representatives as to the formal dispute, in an attempt to resolve the formal dispute.

4. Informal negotiations shall terminate either (a) when the Parties enter a written agreement mutually resolving formal dispute signed by all Parties, or (b) at the end of any period for informal negotiations in which the Parties have not during that period mutually agreed to extend the deadline for informal negotiations. If informal negotiations terminate without the Parties reaching a written signed agreement they shall proceed under the Formal Dispute Resolution procedures as set forth in Attachment “C” hereto.

5. If a dispute arises or any action or claim is brought by any Party to this Agreement for breach of this Agreement or its terms, or to interpret or enforce this Agreement, whether informal negotiations, mediation, arbitration, through a court of law, or otherwise, each Party shall bear its own attorneys’ fees, expert witness fees and other costs incurred therein, including all attorneys’ fees and

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costs of suit incurred in connection with executing and collecting upon a final judgment in that litigation, in addition to any other available relief.

C. In the event the Parties enter into meet and confer pursuant to Section XIV.A, above, with regard to a dispute arising pursuant to Section II.B hereof only (a “Design Dispute”) and fail to reach a resolution of the Design Dispute pursuant to the meet and confer process, then either party may terminate this Agreement by giving ten (10) days written notice to the other Party. Neither Party shall have any further liability to the other pursuant to the terms hereof from and after the effective date of such notice.

XV. NOTIFICATION

A. Whenever, under the terms of this Agreement, written notice is required to be given or a document is required to be sent by on Party to another, it shall be directed to the individuals at the addresses specified below, unless those individuals or their successors give notice of a change to the other Parties in writing. Unless otherwise set forth in this Agreement, all notices and submissions shall be considered served effective upon receipt.

B. Notice shall be delivered to the persons listed below and such notice must be sent in any two of the following methods: (1) electronic mail, (2) United States mail, hand delivery (personal service), or (3) overnight service such as, but not limited to, Fed Ex., to:

1. As to CDA: Chino Basin Desalter Authority General Manager 2151 South Haven Avenue, Suite 202 Ontario, CA 91761 Email: [email protected]

With a copy to: Allison E. Burns Stradling Yocca Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, CA 92660 Email: [email protected]

2. As to the County: San Bernardino County James Jenkins, Director of Airports 777 East Rialto AvenueSan Bernardino, CA 92415- 0831 Email: [email protected]

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With a copy to: San Bernardino County Office of County Counsel Penny Alexander-Kelley Kristina M. Robb 385 N Arrowhead Avenue, Fourth Floor San Bernardino, CA 92415 [email protected] [email protected]

With a copy to: Thomas A. Bloomfield Kaplan Kirsch & Rockwell 1675 Broadway, Suite 2300 Denver, CO 80202 [email protected]

XVI. REPRESENTATIONS AND WARRANTIES

A. The County represents and warrants that it is, as of the Effective Date, taking reasonable steps to maintain compliance with the relevant Regional Board Orders pertaining under the CAO.

B. CDA represents and warrants that it will comply with this Agreement and use best efforts to operate and maintain the wells and Chino I Combined Treatment Plan so as to best effectuate the substance of this Agreement and to minimize the risk that the County will be in violation of the CAO.

XVII. FORCE MAJEURE

A. For purposes of this Agreement, “Force Majeure” means any event arising from causes beyond the control of a Party or its contractors that delays or prevents the performance of any obligation under this Agreement despite that Party’s best efforts to fulfill the obligation or avoid the event. Force Majeure includes but is not limited to: acts of God; fire, flood, windstorm, or earthquake; explosion, riot, or sabotage; war, terrorism, threat of terrorism, or any resulting security measures; strikes, lockouts, or other concerted work stoppages; injunctions; inability to obtain raw material, supplies, or energy; or unscheduled outages, shutdowns, or other loss of any necessary utility.

B. The Party whose performance is delayed or prevented by Force Majeure shall inform the other Parties: (1) orally as soon as possible but no later than 48 hours of learning of the possible delay; and (2) in writing no more than five working days from the commencement of the Force Majeure.

C. The Party whose performance is delayed or prevented by Force Majeure shall use best efforts to minimize the effect and duration of such Force Majeure.

D. Any delay in or failure to perform any obligation under this Agreement by a Party caused by Force Majeure shall not constitute a breach of this Agreement or give rise to any claim for damages.

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XVIII. RETENTION OF RECORDS

A. Financial Records

1. CDA shall maintain Financial Records. These Financial Records shall be maintained in accordance with generally accepted accounting principles and shall be kept for no less than 10 years after each record is generated. The Financial Records are to be made available to any Party hereto on reasonable notice by the Party maintaining them.

B. Project Records

1. Notwithstanding the records retention policies of CDA or the County to the contrary, the Parties shall preserve and retain all Project Records and each Party shall instruct its contractors, subcontractors and agents to preserve and retain all such Project Records and documents until the later of ten years after the Effective Date of this Agreement, or as may be necessary under law.

2. Each Party shall bear its own costs for the retention of their Project Records and Financial Records and said records may be kept by the Parties in any format they so desire.

3. Any Party requesting Financial and/or Project Records from any other Party shall pay for the reasonable costs of such duplication prior to the delivery of the requested documents.

XIX. HEADINGS

All paragraph headings in this Agreement are for convenience of reference only and shall have no effect on the interpretation of any paragraph or provision of this Agreement.

XX. CONSTRUCTION

The language of this Agreement shall be construed as a whole according to its fair meaning and without regard to or aid of Civil Code Section 1654 or similar judicial rules of construction. Each Party acknowledges that it has had the opportunity to seek the advice of experts and legal counsel prior to executing this Agreement, and that it is fully aware of and understands all of the terms herein and the legal consequences thereof. Any judicial rule of construction requiring or allowing an instrument to be construed to the detriment of or against the interests of the maker thereof shall not apply to this Agreement.

XXI. GOOD FAITH AND FAIR DEALING

The Parties shall deal with each other in good faith and fairly in all matters arising under this Agreement. The presence or absence of a specific reference to good faith in any paragraph of this Agreement does not affect the obligation of the Parties to deal with each other in good faith and fairly in all matters arising under this Agreement.

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XXII. NO WAIVER

No waiver by any Party of any default or breach by another Party in the performance of any provision of this Agreement shall operate as or be construed as a waiver of any future default or breach, whether like or different in character. Any failure by a Party at any time to enforce or require the strict keeping and performance of any of the terms or conditions of this Agreement, or to exercise a right hereunder, shall not constitute a waiver of such terms, conditions, or rights and shall not affect or impair same, or the right of either Party to enforce the terms of this Agreement.

XXIII. CHANGED CONDITIONS

A. New Standards for Known Contaminants and New Chemicals

1. This section addresses how this Agreement will operate if (a) the state or federal government adopts drinking water or treatment standards that are more stringent than those that exist at the time of execution of this Agreement for TCE, TCP, 1,1-DCE, c-1,2-DCE, 1,2-DCA, nitrates or TDS, or (b) if new chemicals (other than TCE, TCP, 1,1-DCE, c-1,2-DCE, 1,2-DCA, nitrates or TDS) are identified that require treatment:

2. If such new standards or new chemicals do not trigger a requirement to change the treatment technology or construct or operate any new treatment facilities, the terms of this Agreement shall continue to apply and the system will be operated to treat the same, using the cost and work allocations outlined herein.

3. If such new standards or new chemicals do trigger a requirement to change treatment technologies or construct or operate new treatment facilities, the Parties will meet and confer pursuant to Section XIV.A of this Agreement, in an effort to develop an appropriate cost allocation for the capital and O&M costs associated with the new standards or chemicals. Absent such agreement, this Agreement shall not obligate either party to treat using such new standards or such new chemicals.

B. Changed conditions for CAO or County Response Action

1. It is possible that new conditions or new information will develop during the course of this Agreement that will cause the County to modify the response action for the CAO, including a reduction in production at certain County Wells, an increase in production at the County Wells, the installation of new wells or other changes. In such an instance, CDA agrees reasonably to accommodate requested reductions or increases by the County in production rates at the County Wells. If the County installs new wells or modifies its existing wells to be connected to the County’s Chino I GAC Treatment Plant, the County shall be responsible for the design, permitting and construction of such changes, subject to review and approval or disapproval by CDA and DDW of such design. If needed, the Parties agree to cooperate to develop changes to the cost allocation set forth in this Agreement, for the O&M changes associated with such modification, including to meet and confer pursuant to Section XIV.A of this Agreement.

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C. Conveyance of Water from Airport GAC Treatment Plant

1. If the County determines that it is interested in constructing the Airport GAC Treatment Plant to treat VOC’s from the Onsite County Wells, and if the County further determines that it desires to convey some water from that system to CDA, CDA and the County agree to meet and confer to determine whether or under what circumstances and arrangements CDA could accept the treated water from the Airport GAC Treatment Plant; provided, however, that this Agreement does not impose on CDA any obligation to accept such water.

XXIV. GOVERNING LAW

This Agreement shall be construed in accordance with the laws of the State of California, without giving effect to conflict of law principles.

XXV. SIGNATORIES

A. The decision to enter into this Settlement Agreement has been made solely by the Parties, and each of them, upon advice and representations of the attorneys representing each said Party, and not upon any representations or advice of the other Parties, their representatives or attorneys.

B. In signing below, each Party represents and warrants to the other Party that each is a duly organized or constituted entity, with all requisite power to carry out its obligations under this Agreement, and that the execution, delivery and performance of this Agreement have been duly authorized by all necessary action(s) of the governing board or other governing body of such Party and shall not result in a violation of such Party’s organizational documents.

1. The Parties acknowledge that execution of this Agreement by the County is conditioned upon any necessary approval of the terms of the Agreement by its Board of Supervisors.

XXVI. MULTIPLE COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original.

XXVII. EFFECT OF THIS AGREEMENT ON OTHER AGREEMENTS AMONG THE PARTIES Nothing in this Agreement supersedes, abrogates, amends, or modifies the provisions of any prior agreement between the County and CDA on matters not addressed herein, the terms of which are preserved, except as expressly set forth herein.

XXVIII. NO LIQUIDATED DAMAGES Nothing herein shall be construed as in any way inferring or establishing that this Agreement represents a liquidation of damages incurred or to be incurred in the future by the County and/or CDA as a result of, but not limited to, the Contaminants, or any matter contemplated by this Agreement.

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XXIX. NO ADMISSION This Settlement Agreement is a compromise of disputed claims and is not evidence or an admission of fault or liability on the part of any Party, such liability being expressly denied.

XXX. ADDITIONAL DOCUMENTS

The Parties agree to enter into further agreements as may be necessary to further effectuate the objectives of this Agreement.

XXXI. AMENDMENT This Agreement may be amended at any time, but only by written agreement executed by all Parties then participating in the Agreement.

XXXII. BINDING AGREEMENT This Agreement shall be binding upon the successors of CDA and the County. However, no Party shall assign or otherwise transfer its rights or obligations under this Agreement without the prior written consent of all of the other Parties, which consent shall not be unreasonably withheld. No third party shall be entitled to claim or enforce any rights under this Agreement.

XXXIII. SEVERABILITY In the event that any provision of this Agreement is determined by a court to be invalid, the court shall reform the provision in a manner that is both consistent with the terms of this Agreement taken as a whole and legally valid. The remainder of this Agreement shall not be affected thereby. XXXIV. INTEGRATION

As between the Parties, this Agreement sets forth all of the covenants, provisions, agreements, conditions and understandings with respect to the matters addressed in this Agreement and constitutes the final and complete Agreement of the Parties with respect to such matters and supersedes all previous negotiations between them and all drafts or other documents previously exchanged by them with respect to such matters. Each Party acknowledges that no other Party, or agent or attorney of any other Party, has made any promise, representation, or warranty whatsoever, express or implied, not contained herein concerning the matters addressed in this Agreement, to induce it to authorize the execution of this Agreement, and acknowledges that it has not authorized the execution of this Agreement in reliance upon any such promise, representation, or warranty not contained herein.

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IN WITNESS WHEREOF this Agreement is agreed to between the signatories below.

COUNTY OF SAN BERNARDINO (Print or type name of corporation, company, contractor, etc.)

By Curt Hagman, Chairman, Board of Supervisors (Authorized signature - sign in blue ink)

Dated: Name SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract) DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Title Lynna Monell (Print or Type) Clerk of the Board of Supervisors of the County of San Bernardino By Dated: Deputy

Address

FOR COUNTY USE ONLY Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department

Kristina Robb, Deputy County Counsel

Date Date Date

Name of Party: Chino Basin Desalter Authority

By: Name:

Title:

Date:

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ATTACHMENT “A” CDA/San Bernardino Airport Annual Operation Plan Planning • Both parties to meet in February to establish water production schedule for upcoming Fiscal Year. • Planned water deliveries to Chino I GAC Treatment Plant CDA County* Wells GPM AFY Wells GPM AFY I-1 330 479.096 EW - 1 100 145.181 I-2 150 217.771 EW - 2 100 145.181 I-3 420 609.758 EW - 3 150 217.771 I-4 100 145.181 EW - 4 50 72.590 I-16 175 254.066 EW - 5 100 145.181 I-17 225 326.656 EW - 6 150 217.771 I-18 180 261.325 EW - 7 50 72.590 EW - 8 50 72.590 EW - 9 100 145.181 EW - 10 50 72.590 Total 2293.852 1306.625

Production based on 10% downtime

*These are preliminary values available as of the Effective Date. The capacity needed for the County’s response action will be determined by the County based on additional investigation and analysis, and may increase above the values shown for the County Wells, individually or collectively.

• Planned water deliveries to Airport GAC Treatment Plant On-Site Airport Wells GPM AFY EW - 1 0 0.000 EW - 2 0 0.000 EW - 3 0 0.000 EW - 4 0 0.000 EW - 5 0 0.000 EW - 6 0 0.000 EW - 7 0 0.000 EW - 8 0 0.000 EW - 9 0 0.000 EW - 10 0 0.000 0.000

Historical deliveries • Previous program year delivery Airport CDA County AFY Chino I GAC Wells Wells GAC AFY AFY I-1 0.000 EW - 1 0.000 0.000 I-2 0.000 EW - 2 0.000 0.000 I-3 0.000 EW - 3 0.000 0.000 I-4 0.000 EW - 4 0.000 0.000 I-16 0.000 EW - 5 0.000 0.000 I-17 0.000 EW - 6 0.000 0.000 I-18 0.000 EW - 7 0.000 0.000 EW - 8 0.000 0.000 EW - 9 0.000 0.000 EW - 10 0.000 0.000 Total 0.000 0.000

Planned maintenance and repairs

Previous unplanned maintenance and repairs

Communication CDA Contacts County Contacts CDA Reporting of Groundwater Production Monthly to County (by the 10th) Quarterly to Chino Basin Watermaster

ATTACHMENT “B”

Chino 1 GAC Treatment Plants Engineering Cost Estimate -- Capital Costs*

Item Quantity Unit Cost Total

Site Miscellaneous Site Work 1 $20,000 LS $20,000 Yard Piping 1 $100,000 LS $100,000 Equipment 2 Pressure Filters, Piping and Valves HP1020SYS 2 $400,000 EA $800,000 Backwash Pumps 4 $15,000 EA $60,000 Bolted Steel Backwash Tank - 20,000 gal 32' Tall x 15' 1 $100,000 LS $100,000 PressureDi Filters Structural Concrete and Steel 1 $100,000 LS $100,000 Electrical 1 $50,000 LS $50,000 Instrumentation and Controls 1 $25,000 LS $25,000 Painting and Coatings 1 $30,000 LS $30,000 General Conditions 1 $50,000 LS $50,000

Subtotal $1,335,000 Insurance and Bonds @ 2% $26,700 Contractor's Overhead and Profit @ 10% $133,500 Subtotal Construction Cost $1,495,200 Contingency @ 30% $448,600 Total Capital Cost $1,943,800

*The treatment plant capacity for the County’s Chino I GAC Treatment Plant are preliminary values available as of the Effective Date. The capacity needed for the County’s response action will be determined by the County based on additional investigation and analysis, and may require additional treatment plant capacity, to be funded by the County.

ATTACHMENT “C” Formal Dispute Resolution 1. Non-Binding Mediation: A. If the Parties’ representatives are unable to resolve the formal dispute through informal negotiations as provided in the Agreement, any Party may seek non-binding mediation before a Mediator by written “Notice of Election to Proceed To Mediation” served on all Parties within ten (10) days of the termination of informal negotiations. B. If both Parties do not agree to Mediation, the dispute may be resolved through litigation, as set forth in section 2, entitled Resolution through Litigation, below. C. The Mediation Period shall be for a period of no more than 45 days after date the Notice of Election to Proceed To Mediation was sent, unless extended by written agreement of the Parties. D. The Mediator shall be selected by agreement of the Parties. The Parties will meet and confer either in-person or telephonically to discuss, in good faith, the selection of the Mediator. However, if Parties are unable to agree on a Mediator after having met and conferred, the Parties shall, within two (2) days thereafter, meet in-person and simultaneously exchange their list of four (4) potential Mediators. If the exchanged lists contain the matched name of any Mediator, that match-named Mediator shall be deemed agreed upon. If the exchanged lists contain the matched-names of more than one (1) potential Mediator, the Party first served with the Notice of Election to Proceed To Mediation which is a subject of this mediation will choose the Mediator from the matched-names. If there are no matched-names on the provided lists each Party shall pick two potential mediators from their respective list and write each of the four (4) names separately on the back of identical business cards provided by the Party serving the Notice of Election to Proceed To Mediation. The Party having been served with Notice of Election to Proceed To Mediation shall select the names at random and the order of selection shall be the order in which the potential Mediators are to be contacted to determine if they can perform such mediation in the time required. E. The Parties shall either jointly or individually summarize the nature of the dispute in writing, provide all pertinent and relevant technical and legal arguments and shall also include, if appropriate, a reasonable estimate of the dollar amount in controversy to the Mediator no less than seven (7) days prior to the mediation. F. A date for the mediation shall be selected by the Parties and the Mediator. If the Parties cannot agree on a mediation date it shall be selected unilaterally by the Mediator to fall within the time prescribed for the mediation. Each Party may have counsel present at the mediation and any and all other persons as it deems necessary. The mediation is intended to allow the Parties to reach a reasonable resolution of the controversy with the aid of the Mediator. The mediation shall be considered terminated when one or both Parties or the mediator, provide written notice that the mediation should be terminated. 2. Resolution through Litigation In the event the Parties are unable to resolve the dispute through mediation, either with or without attempting mediation, either Party may proceed with litigation, as permitted under law.

Board of Directors Meeting

Agenda Item No. 12

South Archibald Plume (SAP) Status Report CDA Board of Directors Presentation September 26, 2019 South Archibald Plume Update Project Summary

• SARWQCB Cleanup and Abatement Order (CAO): Sept 23, 2016 • SWRCB Prop 1 Grant Funding Agreement: Executed March 7, 2019 • Project Completion Schedule: March 2021 – request for revised completion date approved by SARWQCB this past quarter • Project Components:  Production Well II-12  Monitoring Wells  Raw Water Transmission Pipeline  Chino II Desalter Decarbonators Modifications

Production Well II-12

• Property Acquisition  Coordination with City of Ontario and property owner/developer completed for property acquisition of well site.  Location of well site property shifted to the West, to locate well within future City park.  Shift in location impacts design of in-tract utilities currently in progress.  Well site appraisal completed.  Status: Right-of-Entry Agreement finalized. Expect Purchase and Sale Agreement in November 2019. Due diligence currently underway, consisting of monitoring well drilling. • SWRCB/RWQCB Site Review  Revised well location approved on March 28, 2019. Monitoring Wells

• Two Monitoring Wells Included in Original Project as Described in the CAO  Onsite monitoring well drilled first to verify adequacy of production well site for TCE removal and provide data for well interference once production well is in service.  Upgradient offsite monitoring well required by Division of Drinking Water for water quality monitoring.  Status: Onsite monitoring well drilling substantially complete. Water quality test results indicate TCE concentration in upper aquifer (above 290 ft bgs) exceed 30 ppb. TCE concentration in lower aquifer (below 290 ft bgs) below 5 ppb. • Third Monitoring Well Requested by SARWQCB  Downgradient well to monitor effectiveness of TCE removal from Well II-12.  Funding currently being evaluated to determine impact of including third monitoring well.

Raw Water Pipeline

• Dedicated transmission pipeline will extend from Well II-12 to Chino II Desalter. • Approximately 4 miles of pipeline ( 12-inch, 18-inch, and 24-inch diameter). • Construction Contract #1: • Construction to begin October 2019 • All work within City of Ontario, Archibald Avenue and Remington Avenue. • Construction completion: May 2020 • Construction Contract #2: • Design complete November 2019 • Bidding to begin December 2019 • Work within Cities of Eastvale and Jurupa Valley • Includes Caltrans Crossing • Estimated construction completion: December 2020

Chino II Desalter Decarbonators Modifications

• 60% design submitted this past quarter. • 90% design submittal anticipated November 2019. • Preliminary design parameters based upon best available data for TCE concentrations. • Design completion contingent upon verification of water quality design parameters. To be obtained from onsite monitoring well. Other Project Activities: • Technical Advisory Committee (TAC) formed pursuant to Prop 1 grant funding agreement. Members include representatives from:  CDA  IEUA  City of Ontario  SARWQCB  SWRCB, grants division  SWRCB, Division of Drinking Water • TAC monthly meetings commenced July 2018. • Proposition 1 funding agreement signed by CDA and IEUA; final executed agreement received from the SWRCB dated March 7, 2019. • Preparation of Monitoring and Reporting Plan underway, including coordination with Chino Basin Watermaster and City of Ontario Program Statistics

Current Previous Qtr Total Project Cost Estimate - $26.4 M $26.0 M

RP-1 Parties Estimated Cost Participation [1] - $21.7 M $21.4 M

Grant Funding - $26.18 M $26.18 M

[1] Cost difference between total project cost estimate and RP-1 party cost estimate are comprised of facilities that are part of original Phase 3 Expansion Project. Questions?

Board of Directors Meeting

Agenda Item No. 13

Quarterly Operations Report September 26, 2019 CDA Product Water Deliveries [Acre Feet]

FY 2019/20 CDA (Chino I and Chino II) Water Deliveries

Month Chino Chino Hills JCSD Norco Ontario SARWC WMWD Total Jul-19 480.000 463.500 742.610 83.000 439.000 100.000 0.000 2,308.110 Aug-19 335.989 278.585 912.589 67.211 414.011 100.000 235.000 2,343.385 Sep-19 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Oct-19 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Nov-19 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Dec-19 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Jan-20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Feb-20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Mar-20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Apr-20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 May-20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Jun-20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Total FY 19/20 Deliveries 815.989 742.085 1,655.199 150.211 853.011 200.000 235.000 4,651.495 Contract Entitlement Annual (AF/YR) 5,000.0 4,200.0 11,733.0 1,000.0 8,533.0 1,200.0 3,534.0 35,200 Monthly (AF) 416.7 350.0 977.8 83.3 711.1 100.0 294.5 2,933.3 Delivered through August 2019 (AF) 816.0 742.1 1,655.2 150.2 853.0 200.0 235.0 4,651.5 97.9% 106.0% 84.6% 90.1% 60.0% 100.0% 79.8% 79.3%

Page 1 (MGD) Page 2 10.0 15.0 20.0 25.0 30.0 35.0 5.0 - Entitlement31.4 MGD Jul-19 9.9 14.2 Aug-19 10.2 14.4 Sep-19 Oct-19 Nov-19 CDA Production CDA Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Production Goal (AF) Goal FY 19 FY 35,200 17,600 26,400 8,800 - 0 20 Production (AF) Production YTD Production Production YTD Combined 1 4,652 4,652 AF (79.3%) st Qtr Page 3 100 150 200 250 300 50 0 Nitrate (mg/l) Water Water Water Raw Product Raw 239 (July Performance Quarterly 90 Goal ≤ 25 ≤ Goal 17 21 1,000 1,200 200 400 600 800 0 Water Water Water Raw Product Raw (mg/l) 1,129 TDS 608

384 346 350 ≤ Goal -August) Brine Line Discharge 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 (MGD)

1.90 0.70 3.67 ≤ Goal CDA Well Status

Chino I • All wells are operational

Chino II • Well II-1 is out of service for well rehabilitation and repairs to pump and motor.

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