CACHUMA CONSERVATION RELEASE BOARD

REGULAR MEETING AGENDA

Montecito Water District Board Conference Room

583 San Ysidro Road Montecito, CA 93108

City of Santa Barbara Goleta Water District

Montecito Water District

March 7, 2019 10:00 AM

Roll Call

Public Comment Period Any member of the public may address the Board of Directors (Board) on any subject within the jurisdiction of the Board that is not scheduled for a public hearing before the Board. The President of the Board will determine the total time for public comments. If you wish to address the Board, please complete and deliver to the Secretary of the Board, before the meeting is convened, a “Request to Speak” form including a description of the subject you wish to address.

Consent Agenda

All matters listed hereunder constitute a consent agenda and may be acted upon by a single roll call vote of the Board. CA-1) MEETING MINUTES

Approval of minutes of the Board of Directors’ February 7, 2019 meeting. CA-2) UNAUDITED INTERIM FINANCIAL STATEMENT – PERIOD ENDING JANUARY

31, 2019 Receive and file the Unaudited Interim Financial Statement – Period Ending January 31, 2019.

CA-3) RESOLUTION 2019-2, DEEMING BOARD MEMBERS TO BE EMPLOYEES OF CCRB ONLY FOR PURPOSES OF PROVIDING WORKERS COMPENSATION INSURANCE UNDER STATE LAW Approve Resolution 2019-1 deeming CCRB Board members as employees only for purposes of providing Workers Compensation insurance coverage through the Special Districts Risk Management Association.

Closed Session Agenda

CS-1) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code section 54956.9(d) (One potential case)

CS-2) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION

Government Code section 54956.9(d)(1) (One case: State Water Resources Control Board adjudicatory proceeding regarding Cachuma Project water rights)

CS-3) PUBLIC EMPLOYEE APPOINTMENT Government Code section 54957(b)(1) (Executive Director)

Reconvene into open session and report on actions taken in closed session pursuant to Government Code Section 54957.1

Regular Agenda

RA-1) UPDATES – DRAFT WATER BOARD ORDER and FEDERAL RECONSULTATION

PROCESS FOR CACHUMA PROJECT Consider status updates regarding the State Water Resources Control Board draft water rights orders and the Reconsultation process underway with the US Bureau of Reclamation and National Marine Fisheries Service.

RA-2) CONSIDER AND PROVIDE FEEDBACK ON DRAFT GUIDELINES ADDRESSING

THE BUDGETING AND PROCUREMENT OF GOODS AND SERVICES FOR CCRB Consider and provide feedback on draft guidelines that clarify CCRB’s procedures for procuring the services of general and professional service vendors and the budgeting of associated costs.

RA-3) SET NEXT MEETING (April 4, 2019, 10:00 AM, location TBD); ADJOURN.

NOTICE TO PUBLIC

Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Cachuma Conservation Release Board representative at least 48 hours prior to the meeting to enable the Board to make reasonable arrangements.

[This Agenda was posted at the Montecito Water District, 583 San Ysidro Road, Montecito, CA and delivered in accordance with §54954.1 and .2 of the Government Code.]

MINUTES OF A MEETING of the

CACHUMA CONSERVATION RELEASE BOARD held at the

David Gebhard Conference Room 630 Garden Street

Santa Barbara, CA 93101

Thursday, February 7, 2019, 10:00 am _____________________________________________________________________________________________

CALL TO ORDER, ROLL CALL The meeting was called to order at 10:00 a.m. by Board President Lauren Hanson. Those in attendance were:

Directors Present: Lauren Hanson Goleta Water District Kristen Sneddon City of Santa Barbara Tobe Plough Montecito Water District

Also Present: Present by Phone: Josh Haggmark Kelley Dyer Ryan Drake Sam Bivins Farfalla Bora Ted Harris Nick Turner Enrique Lopezcalva Dan Hentschke Jean Baldrige Peter Cantle

PUBLIC COMMENT

There were no requests from members of the public to address the Board during Public Comment. CONSENT AGENDA

Executive Director Cantle noted that minor editorial fixes had been applied to the meeting minutes of the January 17, 2019 Board meeting. A motion to approve the January 17, 2019 meeting minutes as modified was made and seconded (Sneddon/Hanson) and approved 2-0-1 (Plough)5

CLOSED SESSION

The Board went into closed session at 10:05 a.m. to discuss matters regarding existing and potential litigation, and public employee appointment. The Board came out of closed session and reconvened the public meeting at 10:54 a.m. There were no reportable actions from closed session.

REGULAR AGENDA

RA-1, Draft Water Board Order and Federal Consultation Process Updates. The Board considered a written status update regarding: a) water rights orders currently in process with the State Water Resources Control Board; and, b) the Endangered Species Act-related Reconsultation process that is underway with the Bureau of Reclamation and National Marine Fisheries Service. The Board had no additional questions or discussion regarding the briefing materials.

RA-2, Set Next Meeting and Adjourn. The next regular meeting of the CCRB Board is scheduled for 10:00 am Thursday, March 7, 2019 at the Montecito Water District, 583 San Ysidro Road, Montecito, CA 93108. If a special meeting of the CCRB Board is necessary prior to the March 7 regular meeting, it will be held March 1, 2019 at the Goleta Water District. The need for the special meeting is to be determined. President Hanson adjourned the meeting at 11:07 am.

Respectfully submitted,

Secretary to the Board

City of Santa Barbara Goleta Water District Montecito Water District

Cachuma Conservation Release Board Agenda Letter

Board of Directors

For Agenda Of: March 7, 2019 Estimated Time: (Consent) Continued Item: No

If Yes, date from:

TO: Board Members

FROM: Peter Cantle, Executive Director

SUBJECT: Unaudited Interim Financial Statement - Period Ending January 31, 2019

Legal Concurrence:

As to form: N/A

Recommended Actions:

Receive and file the Unaudited Interim Financial Statement – Period Ending January 31, 2019.

Discussion:

The Board of Directors approves the CCRB budget each fiscal year, which is subsequently ratified by each Member Agency’s governing body. Following budget approval, unaudited interim financial results are provided each month to the Board to compare fiscal performance against the adopted budget. This report addresses the period ending January 31, 2019.

Fiscal Analysis:

Total income through January 31, 2019 was $796,786.11, reflecting receipt of quarterly payments from Member Units. Total expenses through January 31 ($397,406.68) reflected costs incurred for CCRB management, legal, technical and strategic regulatory support driven by the reconsultation process underway with USBR and NMFS, and essential administrative processes (e.g., accounting, auditing, computer/website support, insurance). The redeployment of line item amounts to account for unanticipated workload (as discussed with the Board during the January 17, 2019 meeting) are reflected in the attached Statement of Revenue and Expense.

Attachments:

Attachment 1: Unaudited Interim Financial Statement for the period ending January 31, 2019

Authored by:

Peter Cantle, Executive Director

ATTACHMENT 1

UNAUDITED INTERIM FINANCIAL STATEMENT – PERIOD ENDING JANUARY 31, 2019

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City of Santa Barbara Goleta Water District Montecito Water District

Cachuma Conservation Release Board Agenda Letter

Board of Directors

For Agenda Of: March 7, 2019 Estimated Time: (Consent) Continued Item: No

If Yes, date from:

TO: Board Members

FROM: Peter Cantle, Executive Director

SUBJECT: Resolution 2019-2, Deeming that Board Members are Employees of CCRB for the Purpose of Providing Workers’ Compensation Coverage While Providing Their Services

Legal Concurrence: As to form: CCRB Legal Counsel has reviewed and approved the subject resolution.

Recommended Actions:

Approve the attached Resolution 2019-2, which deems that CCRB Board members are employees of CCRB only for the purpose of providing Workers Compensation insurance coverage under state law.

Discussion:

CCRB is a member of the California Special Districts Association (CSDA) and pays an annual fee (most recently $1377) for this membership. CSDA membership allows CCRB to access to the risk management pool of the Special Districts Risk Management Association (SDRMA), through which CCRB purchases reasonably priced Workers Compensation and Liability insurance. To obtain the Workers Compensation coverage, the Board must annually adopt a resolution deeming Board members to be employees of CCRB only for purposes of providing insurance coverage under state law. The attached resolution, supplied as a template by SDRMA and modified to incorporate CCRB’s name, will accomplish this requirement.

Fiscal Analysis:

CCRB’s approved FY2019 budget incorporates costs for CSDA membership and SDRMA insurance; there are no additional fiscal impacts.

Attachments:

Res. 2019-2, Deeming that Board Members are Employees of CCRB for the Purpose of Providing Workers’ Compensation Coverage While Providing Their Services

Authored by:

Peter Cantle, Executive Director

RESOLUTION 2019-2 DEEMING THAT BOARD MEMBERS ARE EMPLOYEES OF CCRB FOR THE

PURPOSE OF PROVIDING WORKERS’ COMPENSATION COVERAGE WHILE PROVIDING THEIR SERVICES

RESOLUTION No. 2019-2

RESOLUTION OF THE GOVERNING BODY OF

THE CACHUMA CONSERVATION RELEASE BOARD, DECLARING THAT GOVERNING BODY MEMBERS AND VOLUNTEERS SHALL BE DEEMED TO BE EMPLOYEES OF THE DISTRICT FOR THE PURPOSE OF PROVIDING WORKERS’ COMPENSATION COVERAGE FOR SAID CERTAIN

INDIVIDUALS WHILE PROVIDING THEIR SERVICES WHEREAS, the Cachuma Conservation Release Board (CCRB) utilizes the services of Governing Body Members and Volunteers; and WHEREAS, Section 3363.5 of the California Labor Code provides that a person who performs voluntary service for a public agency as designated and authorized by the Governing Body of the agency or its designee, shall, upon adoption of a resolution by the Governing Body of the agency so declaring, be deemed to be an employee of the agency for the purpose of Division 4 of said Labor Code while performing such services; and WHEREAS, the Governing Body wishes to extend Workers’ Compensation coverage as provided by State law to the following designated categories of persons as indicated by a checkmark in the box to the left of the descriptions:

¨ All Members of the Governing Body of the CCRB as presently or hereafter constituted and/or ¨ All persons performing voluntary services without pay other than meals, transportation, lodging or

reimbursement for incidental expenses ¨ Individuals on Work-study programs ¨ Interns ¨ Other Volunteers ¨ _________________________ [designate]

NOW, THEREFORE, BE IT RESOLVED, that such persons coming within the categories specified above, including the duly elected or appointed replacements of any Governing Body Member and other designated individuals be deemed to be employees of the CCRB for the purpose of Workers’ Compensation coverage as provided in Division 4 of the Labor Code while performing such service. However, said Governing Body Members and other designated individuals will not be considered an employee of the CCRB for any purpose other than for such Workers’ Compensation coverage, nor grant nor enlarge upon any other right, duty, or responsibility of such Governing Body Members or other designated individuals, nor allow such persons to claim any other benefits or rights given to paid employees of the CCRB.

PASSED, APPROVED AND ADOPTED this March 7, 2019 by the following vote:

AYES: NOES: ABSENT:

Lauren Hanson, Chairperson Cachuma Conservation Release Board APPROVED AS TO FORM:

City of Santa Barbara Goleta Water District Montecito Water District

Cachuma Conservation Release Board Agenda Letter

Board of Directors

For Agenda Of: March 7, 2019 Estimated Time : 5 minutes Continued Item: No If Yes, date from:

TO: Board Members FROM:

Peter Cantle, Executive Director

SUBJECT: Item RA-1: Draft Water Board Order and Federal Consultation Process Updates

Legal Concurrence:

As to form: N/A

Recommended Actions:

Receive a status update regarding the State Water Resources Control Board draft Water Rights Order and the federal (Sec. 7) Consultation process underway with the US Bureau of Reclamation and National Marine Fisheries Service.

Discussion

State Water Resources Control Board Water Rights Orders: The Board order and associated permits have been scheduled for consideration in closed session on March 5-6, 2019. (Closed sessions are not open to the public.) It is our understanding that, should the Water Board approve the order and permits out of this closed session, the documents could be issued for public availability within a few days. A public hearing by the Water Board to consider the order and permits and take testimony could follow in early to mid-April. CCRB staff will continue to monitor the status and scheduling of this matter and update the Board accordingly.

Cachuma Project Consultation Process: CCRB staff and consultants as well as representatives of the Downstream Interests continue to coordinate with USBR staff in the production of a Biological Assessment to support the New Proposed Action that was presented to the National Marine Fisheries Service in mid-October. The revised BA requires nine highly detailed technical plans, and USBR has requested assistance from the Cachuma Users in preparing seven of them. The plans, which are in development, will be included as appendices to the document. CCRB and the Downstream Interests are working with USBR to optimize the delivery schedule of the BA to NMFS. Staff will keep the Board apprised as new information comes to light regarding the Consultation process.

CCRB Board of Directors, February 7, 2019 RA-1: Water Board Order and Consultation Update Page 2 of 2

Fiscal Analysis:

CCRB’s approved FY2019 budget of $1,062,350.00 provides for staff and consulting support related to both the Water Board Order and the federal Consultation process. Virtually no expenses have been incurred against the FY2019 budget regarding the State process because the Water Board has not yet acted to issue the order and permits. If, as noted above, the Water Board issues the order and permits for public availability, CCRB will begin to incur costs associated with review and analysis of those documents. Costs associated with legal and technical consulting support for the Consultation process to date have been substantial. Nonetheless, expenditures are expected to remain within the total FY2019 budget approved by the CCRB Board in April 2018.

Attachments:

None.

Authored by:

Peter Cantle, Executive Director

City of Santa Barbara

Goleta Water District

Montecito Water District

Cachuma Conservation

Release Board

Agenda Letter

Board of Directors

For Agenda Of: March 7, 2019

Estimated Time: 15 minutes

Continued Item: No

If Yes, date from:

TO: Board Members

FROM: Peter Cantle, Executive Director

SUBJECT: RA-2: Draft Guidelines for Procurement and Budgeting of Goods and Services for

CCRB

Legal Concurrence: As to form: Yes; the draft guidelines were drafted by CCRB Legal Counsel for Board consideration.

Recommended Actions:

Consider and provide feedback on new draft guidelines that would supersede the existing CCRB

Procurement Policy and clarify the agency’s requirements for procuring and budgeting goods and

services on behalf of CCRB.

Discussion:

CCRB adopted a Procurement Policy in October 2015. Acquisition of CCRB’s goods and services since

that time has been subject to compliance with the policy. Among other things, the policy states that

competitive bidding requirements apply to vendors providing professional services, while allowing sole-

source bidding when the Board in its discretion determines that unique circumstances apply and it is in

CCRB’s best interests to do so.

Recently, Counsel considered whether if, pursuant to the policy, professional service vendors providing

technical consultation support to CCRB through their contractual relationships with Downey Brand law

firm each require annual resolutions exempting them from the competitive bidding requirement for

ongoing work that spans fiscal years. Close analysis of the Procurement Policy led Counsel to conclude

that annual exemption resolutions for such vendors are not required, and that the policy should be

recrafted to better address the Board’s need for cost containment oversight, clarity of requirements and

transparency of the procurement process. The attached draft guidelines would supersede the existing

policy and clarify the requirements for obtaining goods and services on behalf of CCRB.

Fiscal Analysis:

Goods and services are budgeted annually during the CCRB budget process; there are no additional

apparent fiscal impacts.

Attachments:

Att. 1. Draft Guidelines for Procurement and Budgeting of Goods and Services for CCRB

Authored by:

Peter Cantle, Executive Director (staff report)

Sam Bivins, Associate Legal Counsel (Draft Guidelines for Procurement and Budgeting of Goods and Services for CCRB)

ATTACHMENT 1 DRAFT GUIDELINES FOR PROCUREMENT AND BUDGETING

OF GOODS AND SERVICES FOR CCRB

Page | 1 1546471.5

[DRAFT] CCRB Budgeting and Procurement Guidelines

1. Purpose. The Cachuma Conservation Release Board (“CCRB”) will budget for and

acquire goods and services according to these Guidelines to achieve the goals of cost

containment, efficiency, protection of attorney work product, and enhanced fiscal

oversight of CCRB activities.

2. Applicability. These Guidelines supersede the CCRB Procurement Policy adopted by

the CCRB Board of Directors (“Board”) on October 14, 2015. These Guidelines will be

followed by the Board, all CCRB staff, and CCRB’s General Counsel in preparing

CCRB’s annual budget and in procuring goods and services, except as set forth in

paragraph 9.

3. Definitions.

a. “CCRB Budget” means the annual budget for CCRB passed by the Board.

b. “Expert” means a Professional Services Vendor that will assist the General

Counsel with the development of attorney work product on CCRB’s behalf,

and/or to provide expert testimony in adjudicatory proceedings on CCRB’s

behalf.

c. “General Counsel” means the attorneys and law firm hired by CCRB to provide

legal services.

d. “General Services” means supplies, goods and services other than Professional

Services.

Page | 2 1546471.5

e. “Professional Services” mean services that require specialty training, license,

certification, education or experience, including but not limited to financial, legal,

accounting, auditing, economic, engineering, or biological services, including

services to be provided by Experts.

f. “Qualifications” means the experience, expertise and related capabilities of a

Vendor.

g. “Vendor” means any corporation, partnership, individual, sole proprietorship,

joint venture, or other legal entity that sells goods, services, materials, labor, or

equipment, which CCRB or the General Counsel may procure.

4. Procurement of Professional Services Within the Normal Budgeting Process. The

Board may direct the Executive Director and/or General Counsel to use the competitive

bidding procedures set forth in paragraph 6 to develop the CCRB Budget’s line items for

Professional Services and to contract with Vendors of Professional Services on CCRB’s

behalf. Otherwise, CCRB will follow the procedures set forth below in budgeting for and

procuring Professional Services.

a. Legal Services and Experts. The General Counsel will assist the Executive

Director in preparing those portions of the CCRB Budget covering expenditures

for legal services, including Experts. When the CCRB Budget is submitted to the

Board for approval, the General Counsel will provide a confidential legal

memorandum explaining the proposed budget for legal services, including

Experts. In adopting a resolution approving the CCRB Budget, the Board may

authorize the General Counsel to contract with one or more Experts based upon

findings that doing so is in the best interest of CCRB. The Board may also

Page | 3 1546471.5

authorize additional expenditures for legal services consistent with the CCRB

Budget pursuant to existing contracts.

b. Other Professional Services. The Executive Director will have primary

responsibility for budgeting for all other Professional Services. When the CCRB

Budget is submitted to the Board for approval, the Executive Director will

provide a staff report explaining the proposed budget for Professional Services,

excluding services to be provided by Experts. In adopting a resolution approving

the CCRB Budget, the Board will authorize the Executive Director to contract

with one or more Vendors based upon findings that doing so is in the best interest

of CCRB.

c. Contingency Funds. For every Professional Services line item on the CCRB

Budget, the Board will establish a contingency fund of 20%. The CCRB Budget

will also contain a “New Vendor Contingency Fund” of not less than $50,000 to

account for the potential need to contract with new Vendors not expressly

contemplated in the CCRB Budget.

5. Procurement of Services Not Contemplated in CCRB Budget or in Excess of

Budgeted Amounts.

a. Change Orders. When new or unforeseen circumstances arise that require

additional services to be procured from Professional Services Vendors currently

under contract, the Executive Director and General Counsel have discretion to

authorize additional expenditures for such services, provided that the expenditures

authorized do not exceed the contingency fund established for such services in

accordance with paragraph 5.c of these Guidelines. If expenditures for a Vendor

Page | 4 1546471.5

exceed the contingency funds allocated for the particular service, the Board must

approve expenditures from other contingency funds with a Resolution that

identifies the unique circumstances that justify the expenditure.

b. Additional Funding. If all contingency funds are exhausted, additional

expenditures shall be authorized only in accordance with paragraph 32 of the Joint

Powers Agreement.

c. New Professional Services. When CCRB requires Professional Services not

contemplated in the CCRB Budget, such Professional Services will be procured at

the Board’s discretion; provided that, if the Board does not procure such

Professional Services through the procedures set forth in paragraph 7 of these

Guidelines, the Board will adopt a resolution finding that declining to follow

those procedures is in the best interest of CCRB.

6. Competitive Bidding Process. When identifying Vendors pursuant to a competitive

bidding process, the Executive Director and General Counsel will implement the

following procedures.

a. Soliciting and Obtaining Proposals. The Executive Director or General Counsel,

as appropriate, will solicit no less than three proposals for Professional or General

Services. The solicitation must include a written request for Qualifications,

description of work needed, and a deadline for submissions. When Professional

Services are required, the solicitation will require proposals to include a detailed

scope of work, professional staff to be assigned and their qualifications/expertise,

and the Vendor’s qualifications, experience, and cost to perform the service.

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Vendors who assisted the Executive Director or General Counsel in preparing the

solicitation will be disqualified from submitting a proposal.

b. Evaluation of Proposals. The Executive Director and/or the General Counsel will

review each proposal, and present an evaluation of the proposals to the CCRB

Board along with a recommendation.

c. Selection of Proposal. The Board will select a preferred proposal and authorize

either the Executive Director or General Counsel to execute a contract consistent

with the preferred proposal.

7. Management of Contracts. The Executive Director will monitor, supervise, and enforce

each contract between CCRB and its Vendors. The Executive Director will also monitor

expenditures made pursuant to contracts held by the General Counsel for Experts. In

February of each fiscal year, the Executive Director and General Counsel will update the

Board on the status and performance of each contract.

8. Discretion of the Board. These Guidelines are non-binding, and the Board retains its

discretion to authorize contracts with Vendors as it may deem appropriate on a case-by-

case basis.