MEETING OF THE BOARD OF DIRECTORS OF THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY Jointly with the PUBLIC AFFAIRS AND LEGISLATION COMMITTEE June 18, 2018, 8:30 a.m. Conference Room 101 Committee: Director Dick, Chair Staff: R. Hunter, K. Seckel, H. Baez, Director Thomas D. Micalizzi, K. Davanaugh, T. Baca Director Tamaribuchi Ex Officio Member: Director Barbre MWDOC Committee meetings are noticed and held as joint meetings of the Committee and the entire Board of Directors and all members of the Board of Directors may attend and participate in the discussion. Each Committee has designated Committee members, and other members of the Board are designated alternate committee members. If less than a quorum of the full Board is in attendance, the Board meeting will be adjourned for lack of a quorum and the meeting will proceed as a meeting of the Committee with those Committee members and alternate members in attendance acting as the Committee. PUBLIC PARTICIPATION Public comments on agenda items and items under the jurisdiction of the Committee should be made at this time. ITEMS RECEIVED TOO LATE TO BE AGENDIZED - Determine there is a need to take immediate action on item(s) and that the need for action came to the attention of the District subsequent to the posting of the Agenda. (Requires a unanimous vote of the Committee) ITEMS DISTRIBUTED TO THE BOARD LESS THAN 72 HOURS PRIOR TO MEETING -- Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District’s business office located at 18700 Ward Street, Fountain Valley, California 92708, during regular business hours. When practical, these public records will also be made available on the District’s Internet Web site, accessible at http://www.mwdoc.com. DISCUSSION ITEMS 1. LEGISLATIVE ACTIVITIES a. Federal Legislative Report (Barker) b. State Legislative Report (BBK) c. County Legislative Report (Lewis) d. Legal and Regulatory Report (Ackerman) e. MWDOC Legislative Matrix f. Metropolitan Legislative Matrix ACTION ITEMS 2. SB 998 (DODD) - WATER SHUTOFFS: URBAN AND COMMUNITY WATER SYSTEMS Page 1 of 303 PAL Committee Meeting June 18, 2018 3. DEPARTMENT OF INTERIOR APPROPRIATIONS LANGUAGE - CALIFORNIA WATER INFRASTRUCTURE 4. AWARD OF CONTRACT FOR LEGAL AND REGULATORY SERVICES INFORMATION ITEMS (THE FOLLOWING ITEMS ARE FOR INFORMATIONAL PURPOSES ONLY – BACKGROUND INFORMATION IS INCLUDED IN THE PACKET. DISCUSSION IS NOT NECESSARY UNLESS REQUESTED BY A DIRECTOR.) 5. 2018 OC WATER SUMMIT RECAP (JUNE 1, 2018) 6. WYLAND MAYOR’S CHALLENGE POCKET PARK- PROJECT UPDATE 7. EDUCATION PROGRAM UPDATE 8. PUBLIC AFFAIRS ACTIVITIES REPORT 9. POSTER SLOGAN CONTEST 10. WEBSITE AND SOCIAL MEDIA ANALYTICS AND UPDATE OTHER ITEMS 11. REVIEW ISSUES RELATED TO LEGISLATION, OUTREACH, PUBLIC INFORMATION ISSUES, AND MET ADJOURNMENT NOTE: At the discretion of the Committee, all items appearing on this agenda, whether or not expressly listed for action, may be deliberated, and may be subject to action by the Committee. On those items designated for Board action, the Committee reviews the items and makes a recommendation for final action to the full Board of Directors; final action will be taken by the Board of Directors. Agendas for Committee and Board meetings may be obtained from the District Secretary. Members of the public are advised that the Board consideration process includes consideration of each agenda item by one or more Committees indicated on the Board Action Sheet. Attendance at Committee meetings and the Board meeting considering an item consequently is advised. Accommodations for the Disabled. Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning Maribeth Goldsby, District Secretary, at (714) 963-3058, or writing to Municipal Water District of Orange County at P.O. Box 20895, Fountain Valley, CA 92728. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so that District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. 2 Page 2 of 303 Item 1a JAMES C. BARKER, PC ATTORNEY AND COUNSELOR AT LAW FIFTH FLOOR 1050 THOMAS JEFFERSON STREET, NW WASHINGTON, DC 20007 (202) 293-4064 [email protected] Nicholas Crockett Alia Cardwell Municipal Water District of Orange County, California Washington Update June 12, 2018 The Appropriations Process: The House and the Senate have been very active in the appropriations process this spring and in the House of Representatives, the House is on track to finish its spending bills by the August Recess period. This climate of fast moving spending bills was made possible due to the two year spending agreement reached earlier this spring. The Energy and Water Bill: In the House, the Energy and Water Bill has cleared the House Floor. The House passed a funding level of $7.278 Billion for the Army Corps of Engineers, the highest level ever for that agency and roughly a 7% increase -- $451 Million dollars over last year’s spending level. The House passed a $1.56 Billion Dollar budget for the Bureau of Reclamation, an increase of $75 Million over last year. The bill includes $134 Million Dollars for water storage projects authorized through the WINN Act. The Senate has not passed their bill through the Senate Floor at press time. That said, as a result of committee activity the Senate is planning to appropriate $6.9 Billion for the Army Corps of Engineers, a $100 Million increase over last year. For the Bureau of Reclamation, the Senate is planning on $1.493 Million. Both the House and the Senate Bills will need to be “conferenced” or negotiated between the two bodies. Significantly, it appears that both the Army Corps and the Bureau of Reclamation will receive increases over last year’s spending levels. Page 3 of 303 Item 1a The Interior Appropriations Bill: The House Appropriations Committee approved the Interior Appropriations Bill—the bill that funds primarily the Department of the Interior and the EPA on June 6th. The final funding number was $35.25 Billion, approximately the same amount that was funded in the FY18 Bill. On note for the State of California and for the WaterFix Project, Congressman Calvert, the Chairman of the Interior Appropriations Subcommittee in the House of Representatives, included language during committee consideration which will prevent Federal and State Courts from reviewing agency decisions relating to the Waterfix project. Chairman Calvert is likely to be challenged on the House Floor regarding this provision, but he should prevail. Meanwhile, the Senate will present different obstacles and while the Senate may oppose this provision, as both California Senators have indicated their opposition, in the end the Senate is not likely to prevail against the House Majority Leader, Kevin McCarthy, who is a big supporter of this provision. In addition to this key language, there was $3.9 Billion was appropriated for fighting wild fires. The Bill also provides $2.6 Billion for Clean Water and Drinking Water State Revolving Loan Funds (SRF’s) comparable to FY18 Funding. The WIFIA Financing Program received an appropriation of $75 Million, an increase of $12 Million over current funding. The Water Resources Development Act of 2018: This legislation provides the legal authorities for the Army Corps of Engineers to operate. It provides funding for various kinds of water infrastructure from inland ports to locks, dams, flood protection and drinking water infrastructure. The Senate Bill provides for an extension of the WIFIA Program for another two years, until FY2021. The House Bill is silent on the WIFIA Provision. The bill de-authorizes certain sections of previously authorized projects because no work has been performed on those projects. The bill does not de-authorize the Section 5039 Account that provides $40 Million for the State of California. We worked successfully with Congressman Rohrabacher’s office to prevent the de- Page 4 of 303 Item 1a authorization of this account and his office was instrumental in helping MWDOC preserve the Section 5039 Account with the Committee. The House WRDA Bill passed by an overwhelming 408 -2 margin. The Senate is expected to take up the bill either before the August recess or in September. The legislation is also expected to pass the Senate. This legislation will be considered one of the few ‘infrastructure related bills” that will pass this House and the Senate this year. Updates on Federal Grants, The Desal Federal Grant: The WaterSMART GRANT: “Desalination Construction Projects Under the WIIN Act” was posted on May 30th and will close on July 27th. The WaterSMART Desalination Construction grant is available to sponsors of ocean and brackish water desalination projects to request funding for the planning, design, and/or construction of those Projects. It is expected that there will be two to six grants awarded nationally, depending upon the applicant pool. MWDOC staff worked extensively over the years to assist in the development of this national grant program. Projects eligible for funding under this FOA include planning, design, and construction of facilities to desalinate ocean or brackish water, including groundwater. In order to be eligible for funding under this FOA, the Project must: 1. Have a completed feasibility study that has been reviewed by Reclamation and found to meet all of the requirements of Reclamation’s Directives and Standards WTR 11-01, Title XVI Water Reclamation and Reuse Program Feasibility Study Review Process, at www.usbr.gov/recman/wtr/wtr11-01.pdf.