BOARD REPORT - hwd.com · the net income from the trust wouid be transferred on an ongoing basis to the Safe Drinking Water Fund. Recommendation Unlike a regressive water tax, which

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Setting standards of excellence in public service

BOARD REPORT

TO:

FROM:

INITIATED BY:

Board of Directors

Carlos V. Lugo, General Mana~

Jennifer C. Bryant, Director of Administrative Services~ Michelle M. Curtis, Senior Public Affairs Representat~ v--,L

DATE:

SUBJECT:

April 3, 2019

2019 Legislative Session Bills

Strategic Focus Area:

Public Education and Outreach; Fiscal Integrity and Sustainability

Recommendation:

The board adopt resolutions on pending legislation and direct staff to submit associated position letters to elected officials:

Colorado'.R!yer~ ~ _ ~.;... - ..:,___ - -- - --"' .. ~- Item Pending Legislation Recommended Position

1 Colorado River Drought Contingency Plans Agreed to by Basin SUPPORT States

sat,ro·rrn1<loTWiffer/.W~ferga-i~ _ >.,,,-~ ... - ... -- .. .....:;_f!. ·--::: .. --- o,:,:_ -- - II

Item Pending Legislation Recommended Position Safe and Affordable Drinking Water and Excide Cleanup Budget OPPOSE UNLESS

2 Trailer Bill AMENDED 3 SB 414 (Caballero): Small System Water Authority Act of 2019 SUPPORT 4 SB 669 (Caballero): Water Trust Fund SUPPORT

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Pending Legislation _ ;,._,:.;,~;

Recommended Position AB 510 (Cooley): Records Retention Polley SUPPORT AB 533 (Holden): Income Tax Exemption for Water Efficiency Rebates

SUPPORT

7 AB 1486 (Ting): local Agencies Surplus land OPPOSE UNLESS AMENDED

8 AB 1588 (Gloria/Gray): Drinking Water and Wastewater Operator SUPPORT Certification Program for Veterans

Background:

Helix Water District's public affairs department has been tasked with identifying and analyzing pending legislation that may have an impact on the district and its ratepayers.

To date, staff has identified seven bills introduced during the 2019 legislative session that could potentially impact the district. Staff would like the board to consider adopting resolutions and authorize staff to submit letters of support or opposition for each bill. Letters would be sent to the bill's author, legislative committee members, if applicable, and to the district's local elected officials.

1) Colorado River Drought Contingency Plans Agreed to by Basin States SUPPORT

Summar~ The Colorado River provides water to over 40 million people in seven states and Mexico. As a result of ongoing drought conditions and historic over-allocations, the river's ability to meet water demands has become increasingly strained and could reach critically low levels as early as 2021. Working collaboratively to address this issue, the seven Colorado River basin states signed an agreement on the Colorado River Drought Contingency Plans on March 19, 2019 and are seeking congressional authorization for the Department of the Interior to implement the agreement.

Action A letter of support on behalf of Helix Water District (Attachment A) was signed on March 26 by Board President Daniel H. McMillan and General Manager Carlos V. Lugo and submitted to the House of Representatives and the United States Senate in advance of their March 27 hearings on the drought contingency plans. The letter requested that the legislation be passed In haste so that the drought contingency plans can be implemented by April 22; it also expressed support for the seven basin states' position that the legislation should implement the DCPs without granting any additional authority to the Secretary of the Interior. In addition to the sent letter, staff recommends the board adopt a resolution of support (Attachment B).

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2) Safe and Affordable Drinking Water Fund: Budget Trailer Bill, AB 134, AB 217 and SB 200 OPPOSE UNLESS AMENDED

Summary Governor Gavin Newsom's proposed budget for fiscal year 2019-20, released on January 11, 2019, included a proposal for its Environmental Justice - Safe and Affordable Drinking Water and Excide Cleanup budget trailer bill. The intent of°the bill is to provide funding to disadvantaged communities to ensure all Californians have access to safe drinking water.

The budget trailer bill language is similar to the structure and content of last year's Senate Bill 623 (Monnlng], the water tax legislation from the 2017-2018 legislative session. The 2019 budget trailer bill specifies that revenue for the fund would be collected through a statewide tax on drinking water and an assessment on fertilizer sales and dairies. In addition to the budget trailer bill, three policy spot bills have also been introduced on the safe drinking water subject: Assembly Bill 134 (Bloom), AB 217 (E. Garcia) and Senate Bill 200 (Manning).

Recommendation A tax on water would have a negative impact on district customers, further exacerbating the high cost of living in the state and working against the goal of keeping water affordable for all Californians. Additionally, alternative funding solutions exist. Staff recommends the board adopt a resolution of opposition unless amended for the budget trailer bill (Attachment C) and authorize staff to submit a letter of opposition unless amended (Attachment D).

3) Senate Bill 414 (Caballero): Sma!! System Water .Authority Act of 2019 SUPPORT

Summary Senate Bill 414 is co-sponsored by the California Municipal Utilities Association and Eastern Municipal Water District and is a re-introduction of Assembly Bill 2050 {Caballero) from the 2018 legislative session. AB 2050 passed the legislature but was vetoed by the governor on fiscal grounds. SB 414 would authorize the creation of small system water authorities that would have the power to absorb, improve and competently operate noncompliant public water systems - those that are historically out of compliance with drinking water quality standards.

Recommendation SB 414 is premised on the notion that the service delivery infrastructure and governance structure of failing and noncompllant infrastructure must be improved prior to any broader funding solution. Staff recommends the board adopt a resolution of support for SB 414 (Attachment E) and authorize staff to submit a letter of support {Attachment F).

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4) Senate Bill 669 (Caballero): Water Trust Fund SUPPORT

Summary Senate Bill 669 Is an alternative funding solution to the water tax; It would create a Safe Drinking Water Trust at the state treasury, which would provide a durable funding source to help community water systems in disadvantaged communities provide their customers with access to safe drinking water. The trust would be funded with an infusion of general fund dollars during a budget surplus year, which would be invested - the net income from the trust wouid be transferred on an ongoing basis to the Safe Drinking Water Fund.

Recommendation Unlike a regressive water tax, which would have high implementation costs for the state's 3,000 water providers, the trust would not drive up water costs nor work against the state's water affordability policy. Staff recommends the board adopt a resolution of support for SB 669 (Attachment G) and authorize staff to submit a letter of support {Attachment H).

5) Assembly Bill 510 (Cooley): Records Retention Policy SUPPORT

Summary Assembly Bill 510 would allow public agencies to diligently manage their financial and equipment resources by setting their own records retention policies for recordings collected via routine video monitoring, radios and telephones.

Recommendation This bill would modernize the government code to allow local public agencies to adopt record retention policies that allow agencies to retain Important records while deleting useless ones, saving ratepayers unnecessary storage costs while ensuring the proper retention of records. Staff recommends the board adopt a resolution of support for AB 510 (Attachment I) and authorize staff to submit a letter of support (Attachment j),

6) Assembly Bill 533 (Holden): Income Tax Exemption for Water Efficiency Rebates SUPPORT

Summary Assembly Bill 533 is co-sponsored by the Metropolitan Water District of Southern California, California Water Efficiency Partnership and WaterNow Alliance. The bill would exempt from state Income tax any rebates, vouchers or other flnancial incentives issued by a local water agency for participation in water efficiency or storm water runoff improvement programs.

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Recommendation Consumer rebates are a proven, cost-effective tool for increasing participation in water conservation programs M taxing rebates is a disincentive for consumers and agencies to expand these effective programs. The passage of AB 533 would also ensure that rebates for water efficiency programs receive the same tax exemption as those afforded energy efficiency programs. Staff recommends the board adopt a resolution of support for AB 533 (Attachment K) and authorize staff to submit a letter of support (Attachment L).

7) Assembiy Biii 1486 (Ting): i.ocai Agencies Surpius Land OPPOSE UNLESS AMENDED

Summary Assembly Bill 1486 would require special districts and other public agencies to offer a right of first refusal to affordable housing developers, schools and park agencies before leasing, selling or otherwise conveying any of the agency's land.

Recommendation The new requirements in the bill could be problematic for many public agencies that have valid reasons to lease or otherwise protect land they own. It could also result in agencies keeping properties vacant, which does not typically benefit nor enhance the surrounding communities. Staff recommends the board adopt a resolution of opposition unless amended for AB 1486 (Attachment M) and authorize staff to submit a letter of opposition unless amended (Attachment N).

8) Assembly BUI 1S88 (Gloria/Gray): Drinking Water and Wastewater Operator Certification Programs for Veterans SUPPORT

Summary Assembly Bill 1588 is co-sponsored by the San Diego County Water Authority and otay Water District. The bill would ensure that military veterans transitioning from military service Into civilian water and wastewater treatment operator occupations receive appropriate and satisfactory credit towards California certifications for the work experience, education, skills and knowledge gained while working on water and wastewater treatment systems during military service.

Recommendation AB 1588 would provide a path of reciprocity for military veterans to navigate the civilian water system operation process in California, providing additional job opportunities for veterans while also providing the state's water industry with a much larger pool of skilled and experienced individuals. Staff recommends the board adopt a resolution of support for AB 1588 (Attachment 0) and authorize staff to submit a letter of support (Attachment P).

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Attachments: Attachment A - Colorado River Drought Contingency Plans Agreed to by Basin States letter of support Attachment B - Colorado River Drought Contingency Plans Agreed to by Basin States Resolution Attachment C - Safe and Affordable Drinking Water and Excide Cleanup budget trailer bill Resolution Attachment D - Safe and Affordable Drinking Water and Excide Cleanup budget trailer bill letter of opposition unless amended Attachment E - Senate Biii 414 Resoiution Attachment F - Senate Bill 414 fetter of support Attachment G - Senate Bill 669 Resolution Attachment H -Senate Bill 669 letter of support Attachment I -Assembly Bill 510 Resolution Attachment J - Assembly Bill 510 letter of support Attachment K - Assembly Bill 533 Resolution Attachment L-Assembly Bill 533 letter of support Attachment M -Assembly B1111486 Resolution Attachment N - Assembly Bill 1486 letter of opposition unless amended Attachment O - Assembly Bill 1588 Resolution Attachment P -Assembly Bill 1588 letter of support

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Attachments A-P

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Setting Standards of Excellence In Public Service

Administration Office 7811 University Avenue La Mesa, California 91942-0427

619-466-0585 [email protected] hwd.com

March 26, 2019

The Honorable Lisa Murkowski Chairman Committee on Energy & Natural Resources United States Senate 304 Dirksen Senate Office Building Washington, DC 20510

The Honorable Raul Grijalva Chairman Committee on Natural Resources U.S. House of Representatives 1324 Longworth House Office Building Washington, DC 20515

The Honorable Joe Manchin Ranking Member Committee on Energy & Natural Resources United States Senate 304 Dirksen Senate Office Building Washington, DC 20510

The Honorable Rob Bishop Ranking Member Committee on Natural Resources U.S. House of Representatives 1324 Longworth House Office Building Washington, DC 20515

RE: Colorado River Drought Contingency Plans Agreed to by Basin States - SUPPORT

Dear Chairman Murkowski, Chairman Grijalva, Ranking Member Manchin and Ranking Member Bishop:

We are writing to express our support of legislation directing the Secretary of the Interior to implement the drought contingency plans agreed to by the seven states of the Colorado River Basin on March 19, 2019. We also agree with the basin states that this legislation should implement the DCPs without granting any additional authority to the Secretary. We respectfully request that this legislation is passed with haste so that the DCPs can be implemented by April 22, 2019. The language agreed to by the seven basin states is attached for reference.

Helix Water District is a nonprofit special district that treats and delivers water to 275,000 residents in eastern San Diego County. With limited local water supplies, the majority of our water is imported through the San Diego County Water Authority and the Metropolitan Water District of Southern California. Colorado River water is an important component of our regional water portfolio and is critical to the health of our communities and our economy.

The Colorado River continues to weather a long-term drought that is projected to endure even with above average precipitation in some basin states this year. If current conditions persist Lake Powell and Lake Mead could see critically low levels as early as 2021.

Board of Directors Daniel H. McMillan, President Mark Gracyk, Vice President DeAna R. Verbeke, Division 2 Kathleen Coates Hedberg, Division 4 Joel A. Scalzltti, Division 5

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Recognizing the challenges of managing the Colorado River, we appreciate that the basin states have worked collaboratively to develop the drought contingency plans in a manner that will benefit water users and the environment. The drought contingency plans are consistent with existing environmental laws including the National Environmental Policy Act and the Endangered Species Act.

Reliable water supply is essential to the health and well-being of all Americans. We thank you for your efforts to ensure the DCP authorization moves forward in a timely manner.

If you or members of your staff have any questions, please contact our general manager, Carlos Lugo, at 619-667-6241 or [email protected].

Sincerely,

Daniel H. McMillan President

Carlos V. Lugo General Manager

cc: The Honorable Brian Jones, California's 38th Senate District [email protected]

The Honorable Shirley Weber, California's 79th Assembly District [email protected]

The Honorable Randy Voepel, California's 71st Assembly District [email protected]

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SEC.......,

PROPOSED LEGtStATION

COLORADO RIVER BASIN OROUGHi CONTINGENCY PLANS

(a) Notwithstanding ony otl1er provision of law directly related to operation of the appJlcoble Colorado River System te$JiNOlrs, upcn exewtlon of the March l9,, 20:19 versions of the Agreerrtfltt Omceming Colorado River Drought CcntlngfJney Management 01Jd Operation$ and the agreements attached thereto as Attochm~nu Al., A1 and S, by all of th<! ,wn .. JetJeral pattln thereto, the s«tetwy cf the Interior shall, without delay, exewte $«h agrttmfnts., ill'td Is directed rmd fRJfhcrlz«I w etJfl'/ om the pmvisfom of such ugmemenrs; and c,p,tate opplktJl,ltl Colmooo Riwr S,st~m ttsewtJJn «etJrdingly; prtwlded,, :htJt ~ In thi:J sffllM sld be~ or lnt~d m ~fer w lldgotlmt fJ/, « m cfterln~ offetting, or being d~ m a ~ determfnotkm refJ(IJ'dl#'Jfiw the MJ'btf rights of the tJnited s~ any Jmfkm t1'1be# btJml, er community, ony 1'tote or political subdivision or district there()L or t1ny person.

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RESOLUTION 19-17 OF THE BOARD OF DIRECTORS OF HELIX WATER DISTRICT

SUPPORTING THE COLORADO RIVER DROUGHT CONTINGENCY PLANS

AGREED TO BY BASIN STATES

WHEREAS, Helix Water District Board of Directors is focused on safe, clean, reliable drinking water for the district's customers at an affordable rate; and

WHEREAS, ongoing drought conditions and historic over-allocations have resulted in the Colorado River's Inability to meet Increasingly strained water demands. This could reach critically low levels as early as 2021; and

WHEREAS, the Colorado River provides water to over 40 million people in seven states and Mexico; and

WHEREAS, the seven Colorado River basin states signed an agreement on the Colorado River Drought Contingency Plans on March 19, 2019 and are seeking congressional authorization for the Department of the Interior to implement the agreement; and

WHEREAS, a letter of support on behalf of Helix Water District was signed on March 26 by President Daniel H. McMillan and General Manager Carlos V. Lugo and submitted to the House of Representatives and the United States Senate in advance of their March 27 hearings on the drought contingency plans; and

WHEREAS, the letter requested that the legislation be passed in haste so that the drought contingency plans can be implemented by April 22; it also expressed support for the seven basin states' position that the legislation should implement the drought contingency plans without granting any additional authority to the Secretary of the Interior.

NOW, THEREFORE, BE IT RESOLVED, that the Helix Water District Board of Directors supports the Colorado River Drought Contingency Plans agreed to by the Basin States,

·PASSED, ADOPTED ANO APPROVED this 3rd day of April 2019, by the following vote:

AVES:

NOES:

ABSENT:

Daniel H. McMillan, President

ATTEST:

Sandra L. Janzen, Secretary of the Board

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Administ ration Office 7811 University Avenue La Mesa, California 91942-0427


April 3, 2019

The Honorable Brian Jones State Capitol Room 4088 Sacramento, CA 94249-0079

S(,tting-Standards of Excellence. In Public Se1'1/ice

VIA EMAIL: [email protected]

Re: Proposed Drinking Water Tax- OPPOSE UNLESS AMENDED

Dear Senator Jones:

Helix Water District respectfully opposes Governor Gavin Newsom's proposed budget for fiscal year 2019-20, released on January 11, 2019, that includes a proposal for a Safe and Affordable Drinking Water Fund. Revenue for the fund would be collected through a statewide tax on drinking water and an assessment on fertilizer sales and dairies.

Governor Newsom indicated in his proposed budget summary that he would be advancing the safe drinking water funding framework "consistent with the policy framework of Senate Bill 623" {Manning, 2017), via either a policy bill or budget trailer bill. Potential bill vehicles include Assembly Bill 134 (Bloom}, Assembly Bill 217 (E. Garcia) and Senate Bill 200 {Manning).

As a local water agency providing drinking water to over 275,000 residents in eastern San Diego County, we are committed to delivering safe and reliable water. We strongly agree that all Californians should have access to safe drinking water. However, a statewide tax is highly problematic and not necessary when alternative funding solutions exist.

Disadvantages of a Water Tax • The state should not tax something that is essential to life, such as water and food. • The cost of living in California is already high; a tax on water would further exacerbate this

issue. • A tax on water would work against the goal of keeping water affordable for all Californians.

In Governor Newsom's proposed budget summary, he notes that "the most significant remaining challenge is the lack of stable funding source for long-term operation and maintenance of drinking water systems." To address this, the Association of California Water Associations and the California Municipal Utilities Association introduced Senate Bill 669 {Caballero), which would

Board of Directors Daniel H. McMillan, President Mark Gracyk, Vice President DeAna R. Verbeke, Division 2 Kathleen Coates Hedberg, Division 4 Joel A. Scalzitti, Division 5

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create the Safe Drinking Water Trust as an alternative funding mechanism to address safe drinking water needs instead of a water tax.

The trust's principal would be initially financed with a one-time infusion of State General Fund dollars during a budget surplus year. The trust's principal would be invested, and the new income would be transferred to a Safe Drinking Water Fund, which the State Water Resources Control Board would administer.

Advantages of a Safe Drinking Water Trust • The trust is a credible solution for sustainable, long-term funding. • The state currently has a very large budget surplus, making it an excellent time to create and

fund the trust. • It supports the results of a statewide poll conducted in 2018 byTulchin Research, which found

that 73 percent of likely voters oppose a tax on drinking water and 74 percent would prefer using existing funding sources rather than establishing a new tax.

For these reasons, Helix Water District respectfully opposes a statewide tax on drinking water and supports the Safe Drinking Water Trust.


Sincerely,






Association of California Water Agencies [email protected]

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OPPOSING (UNLESS AMENDED) THE SAFE AND AFFORDABLE DRINKING WATER FUND: BUDGET TRAILER BILL, ASSEMBLY BILL 134, ASSEMBLY BILL 217 AND SENATE BILL 200

WHEREAS, Hellx Water District Board of Directors is focused on safe, clean, reliable drinking water for the district's customers at an affordable rate; and

WHEREAS, Governor Gavin Newsom's proposed budget for fiscal year 2019-20, released on January 11, 2019, included a proposal for its Environmental Justice - Safe and Affordable Drinking Water and Excide Cleanup budget trailer bill; and

WHEREAS, the intent of the bill is to provide funding to disadvantaged communities to ensure all Californians have access to safe drinking water; and

WHEREAS, the budget trailer bill language is similar to the structure and content of last year's Senate Bill 623 (Monnlng), the water tax legislation from the 2017-2018 legislative session; and

WHEREAS, the 2019 budget trailer bill specifies that revenue for the fund would be collected through a statewide tax on drinking water and an assessment on fertilizer sales and dairies. In addition to the budget trailer bill, three policy spot bills have also been Introduced on the safe drinking water subject: Assembly Bill 134 {Bloom), AB 217 (E. Garcia) and Senate Bill 200 (Menning); and

WHEREAS, a tax on water would have a negative impact on district customers, further exacerbating the high cost of living In the state and working against the goal of keeping water affordable for all Californians. Additionally, alternative funding solutions exist.

NOW, THEREFORE, BE IT RESOLVED, that the Helix Water District Board of Directors opposes (unless amended) the Safe and Affordable Drinking Water Fund: Budget Trailer Bill, AB 134, AB 217 and SB 200.

PASSED, ADOPTED AND APPROVED this 3rd day of April 2019, by the following vote:

AYES:

NOES:

ABSENT:


ATTEST:

Sandra L Janzen, Secretary of the Board

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settrnirstandarcls of Excellente in Public Service

Administration Office 7811 University Avenue La Mesa, California 91.942-0427


April 3, 2019

The Honorable Anna Caballero State Capitol Room 5052 Sacramento, CA 95814

RE: Senate Bill 414 (Caballero)- SUPPORT The Small System Water Authority Act of 2019

Dear Senator Caballero:

Helix Water District is pleased to support Senate Bill 414 (Caballero) which would authorize the creation of small system water authorities that would have the powers to absorb, improve and competently operate noncompliant public water systems - those that are historically out of compliance with drinking water quality standards.

Nearly 800,000 Californians lack access to safe and reliable drinking water on a daily basis. In November 2017, the State Water Resources Control Board identified 329 systems statewide that chronically serve contaminated drinking water or cannot provide reliable water service due to unsound infrastructure or because they lack the financial, managerial or technical resources to do so. The vast majority of these systems are small, typically serving less than 10,000 people.

Helix Water District treats and delivers a safe and reliable water supply to 275,000 residents in eastern San Diego County. We recognize that every Californian, including those in rural areas, have a right to safe, clean, affordable and accessible drinking water. Under Assembly Bill 2050, non-compliant water systems would have the opportunity to develop a compliance plan within a given time frame or merge with more robust water systems - allowing small systems to take advantage of improved economies of scale, streamlined managerial functions and enhanced financial capacities.

SB 414 would serve as an alternative approach to the creation of a water tax to fund drinking water programs within disadvantaged communities. Failing and noncompfiant water systems must be improved as a condition precedent to any broader funding solutions as advanced through various proposals. SB 414 focuses on the governance structure and long-term sustainability of these systems to better utilize potential additional funding sources to deliver safe drinking water.

Board of Directors Daniel H. McMillan, President Mark Gracvk, Vice President DeAna R. Verbeke, DIVision 2 Kathleen Coates Hedberg, Division 4 Joel A. Scalzitti, Division 5

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For these reasons, Helix Water District respectfully supports Senate Bill 414.


Sincerely,







Members of the Assembly Revenue and Taxation Committee 916-319-2198 (fax}

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SUPPORTING SENATE BILL 414 (CABALLERO): SMALL SYSTEM WATER AUTHORITY ACT OF 2019

WHEREAS, Helix Water District Board of Directors is focused on safe, clean, reliable drinking water for the district's customers at an affordable rate; and

WHEREAS, Senate Bill 414 is co-sponsored by the California Municipal Utilities Association and Eastern Municipal Water District and is a re-introduction of Assembly Bill 2050 (Caballern) from the 2018 legislative session; and

WHEREAS, Assembly Bill 2050 passed the legislature but was vetoed by the governor on fiscal grounds; and

WHEREAS, Senate Bill 414 would authorize the creation of small system water authorities that would have the power to absorb, improve and competently operate noncompliant public water systems - those that are historically out of compliance with drinking water quality standards; and

WHEREAS, Senate Bill 414 Is premised on the notion that the service delivery infrastructure and governance structure of failing and noncompliant infrastructure must be Improved prior to any broader funding solution.

NOW, THEREFORE, BE IT RESOLVED, that the Helix Water District Board of Directors supports Senate Bill 414 (Caballero): Small System Water Authority Act of 2019.


AYES:

NOES:

ABSENT:


ATTEST:


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~Helix 'a'V WATER DISTRICT

Setting Standards of EKcellence In Public Service



April 3, 2019

The Honorable Anna Caballero State Capitol Room 5052 Sacramento, CA 95814

RE: Senate Bill 669 (Caballero)- SUPPORT Safe Drinking Water Trust

Dear Senator Caballero:

Helix Water District is pleased to support Senate Bill 669 (Caballero), which would create the Safe Drinking Water Trust at the state treasury. The purpose of the trust would be to provide a durable funding source to help community water systems in disadvantaged communities provide their customers with access to safe drinking water. The trust is a better approach than a statewide water tax.

As a local water agency providing drinking water to over 275,000 residents in eastern San Diego County, we are committed to delivering safe and reliable water. We strongly agree that all Californians should have access to safe drinking water. However, a funding gap for operation and maintenance costs for the treatment of drinking water currently exists for community water systems in disadvantaged communities. O&M costs generally cannot be financed with existing federal and state safe drinking water funding sources that are available for capital costs.

In some situations, the consolidation of a failing community water system with one or more systems may be the most effective solution. The Safe Drinking Water Trust proposed in SB 669 would provide a durable funding source to provide financial assistance for replacement water as a short-term solution, consolidation and ongoing O&M costs.

The trust would be funded with an infusion of General Fund dollars during a budget surplus year. With the record budget surplus for fiscal year 2019-20, this is the perfect opportunity to create and fund the trust. The state would invest the trust's principal, and the net income from the trust would be transferred on an ongoing basis to a Safe Drinking Water Fund that would be administered by the State Water Resources Control Board.

The trust is a better approach than a statewide water tax because it is not sound policy to tax a resource that is essential to life. Unlike a regressive watertax and the associated implementation

Board of Directors Daniel H. McMillan, President Mark Gracyk, Vice President DeAna R. Verbeke, Division 2 Kathleen Coates Hedberg, Division 4 Joel A. Scalzitti, Division S

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costs for 3,000 local water providers, the trust would not drive up water costs and work against the state's Human Right to Water policy of affordable water.

For these reasons, Helix Water District respectfully supports Senate Bill 669 and the creation of the Safe Drinking Water Trust.


Sincerely,



cc: The Senate Standing Committee on Environmental Quality [email protected] [email protected]

The Honorable Brian Jones, California's 38th Senate District senator. ion [email protected]




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SUPPORTING SENATE BILL 669 (CABALLERO): WATER TRUST FUND

WHEREAS, Helix Water District Board of Directors Is focused on safe, clean, reliable drinking water for the district's customers at an affordable rate; and

WHEREAS, Senate Bill 669 is an alternative funding solution to the water tax; it would create a Safe Drinking Water Trust at the state treasury, which would provide a durable funding :,uur1.;t: tu hd1-1 wmmu11lty wc1tt:, :,pti;;:m:, i11 disadvantaged communities provide their customers with access to safe drinking water; and

WHEREAS, the trust would be funded with an infusion of general fund dollars during a budget surplus year, which would be invested; and

WHEREAS, the net Income from the trust would be transferred on an ongoing basis to the Safe Drinking Water Fund; and

WHEREAS, the trust would not drive up water costs nor work against the state's water affordability policy.

NOW, THEREFORE, BE IT RESOLVED, that the Helix Water District Board of Directors supports Senate Bill 669 (Caballero): Water Trust Fund.


AYES:

NOES:

ABSENT:


ATTEST:

Sandra l. Janzen, Secretary of the Board

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Setting Standards of E>tcellenee in Publlc Service



April 3, 2019

The Honorable Ken Cooley California State Assembly State Capitol, Room 3013 Sacramento; CA 95814

RE: Assembly Bill 510 (Cooley)- SUPPORT Destruction of Local Government Records [As Introduced February 13, 2019]

Dear Assembly Member Cooley:

Helix Water District is pleased to support Assembly Bill 510, which allows public agencies to diligently manage their financial and equipment resources by setting their own records retention policies for recordings related to routine video monitoring, radios and telephones.

AB 510 modernizes the Government Code to allow local public agencies, including special districts, to adopt records retention policies designed for modern digital recording technologies while ensuring the proper retention of any records in which an incident may have occurred. This change in law will allow agencies to retain important records while deleting useless ones, thus saving a significant amount of taxpayer dollars on unnecessary data storage costs.

Helix Water District is a special district that treats and delivers water to 275,000 residents in eastern San Diego County. We have 52 video cameras currently in service, five recording devices and over 100 terabytes of storage capacity used for surveillance and monitoring of critical district facilities and infrastructure. The district owns the associated software and storage, which helps keep expenses low. Increasing the retention period would result in the need for a larger storage system and increased ratepayer costs,

AB 510 modernizes existing law to catch up with the technology of today and will allow flexibility for our district to adapt to future technological advances, allowing our district to diligently manage our financial and equipment resources by setting our own records retention policies based on the needs and the use of our cameras, radios and telephones.

For these reasons, Helix Water District respectfully supports AB 510. Board of Directors Daniel H. McMillan, President Mark Gracyk, Vice President DeAna R. Verbeke, Division 2 Kathleen Coates Hedberg, Division 4 Joel A. Scalzitti, Division 5

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Sincerely,



CC: The Honorable Brian Jones, California's 38th Senate District [email protected]

The Honorable Shirley Weber, California's 79th Assembly District

The Honorable Randy Voepel, California's 71 st Assembly District assemblymem ber. voepel@assem bly .ca.gov

Rylan Gervase, Legislative Representative, California Special Districts Association [email protected]


California Special Districts Association [email protected]

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SUPPORTING ASSEMBLY BILL 510 (COOLEY): RECORDS RETENTION POLICY

WHEREAS, Helix Water District Board of Directors is focused on diligent management of the district's financial and equipment resources to assist with keeping rates low; and

WHEREAS, Assembly Bill 510 would allow public agencies to set their own records retention policies for recordings collected via routine video monitoring, radios and telephones; and

WHEREAS, Assembly Bill 510 would modernize the government code to allow local public agencies to adopt record retention policies to retain important records while deleting useless ones, saving ratepayers unnecessary storage costs while ensuring the proper retention of records; and

WHEREAS, Helix Water District has 52 video cameras currently in service, five recording devices and over 100 terabytes of storage capacity used for surveillance and monitoring of critical district facilities and infrastructure; and

WHEREAS, the district owns the associated software and storage, which helps keep expenses low; and

WHEREAS, increasing the retention period would result in the need for a larger storage system and increased ratepayer costs; and

WHEREAS, Assembly Bill 510 modernizes existing law to catch up with current technology and would allow flexibility to adapt to future technological advances by allowing the district to determine the records retention policies based on the needs and use of district cameras, radios and telephones.

NOW, THEREFORE, BE IT RESOLVED, that the Helix Water District Board of Directors supports Assembly Bill 510 (Cooley): Destruction of Local Government Records as introduced February 13, 2019.


AVES:

NOES:

ABSENT:

Daniel H. McMillan, President ATTEST:


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April 3, 2019

The Honorable Chris Holden State Capitol PO Box 942849 Sacramento, CA 94249

Setting StatldaYds of Excellence tn public Set\frce

Administration Office 7811 l,,Jniversity Avenue La Mesa, Californla 91942-0427

619-46&-0585 [email protected] hwd.corn

RE: Assembly Bill 533 (Holden) -SUPPORT Income Tax Exemption for Water Rebates

Dear Assembly Member Holden:

Helix Water District is pleased to support Assembly Bill 533 which exempts any rebates, vouchers or other financial incentive issue by a local water agency for participation in a water efficiency or storm water improvement programs from state or corporate income tax.

In May 2018, Senate Bill 606 (Hertzberg) and Assembly Bill 1668 (Friedman) were signed into law as part of then Governor Brown's initiative to make "Water Conservation a California Way of Life" in response to California's longest drought in history.

Helix Water District is a special district that treats and delivers water to 275,000 residents in eastern San Diego County. We have had a robust water conservation program since the early 1990s which has included consumer rebates for low-flow toilets, high-efficiency clothes washers, irrigation controllers, rotating sprinkler nozzles and turf replacement.

Utility-sponsored financial incentives, including consumer rebates, are among the most important and cost-effective tools available to local water providers to achieve water use efficiency objectives, particularly for turf replacement, irrigation controllers, leak detection devices and other high cost water-saving options. However, over a certain amount, the rebate funds that individuals and businesses receive in connection with these programs may be deemed to be taxable under state law.

The consistent experience of California's water utilities shows that fewer individuals and corporations will avail themselves of financial incentives if they are deemed to be taxable income. If rebates from water efficiency and storm water improvement programs are considered taxable income in California, cities and water agencies are required to send tax


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documents, i.e. 1099s, to each program participant. This creates an unnecessary administrative burden on water agencies.

It is well documented that consumer rebates and subsidies substantially increase adoption of water use efficiency and storm water management strategies. Rebates provide a much-needed financial incentive to implement these measures year-round. We applaud your leadership in introducing this vitally important legislation ensuring that rebates, vouchers and other incentives for turf replacement and storm water programs are exempt from state income and corporate tax. This is a necessary step to incentivize homeowners and businesses to make important investments in water conservation and storm water capture projects to protect our critical water resources.

For these reasons, Helix Water District respectfully supports Assembly Bill 533.


Sincerely,







Members of the Assembly Revenue and Taxation Committee 916-319-2198 (fax)

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SUPPORTING ASSEMBLY BILL 533 (HOLDEN): INCOME TAX EXEMPTION FOR WATER EFFICIENCY REBATES

WHEREAS, Helix Water District Board of Directors is focused on providing cost-effective tools for increasing participation in water conservation programs; and

WHEREAS, Helix Water District has participated In a robust water conservation program since the early 1990s which has Included consumer rebates for low-flow toilets, high-efficiency

WHEREAS, taxing rebates is a disincentive for consumers and agencies to expand consumer rebates also creating costly agency administration; and

WHEREAS, Assembly Bill 533 would exempt from state income tax any rebates, vouchers or other financial incentives issued by a local water agency for participation in water efficiency or storm water runoff improvement programs; and

WHEREAS, Assembly Bill 533 is co-sponsored by the Metropolitan Water District of Southern California, California Water Efficiency Partnership and WaterNow Alliance; and

WHEREAS, if such financial incentives to conserve water are deemed to be taxable income, consistent experience of California's water utilities shows that fewer lndlviduals and corporations would avail themselves to water efficiency and storm water improvement programs.

NOW, THEREFORE, BE IT RESOLVED, that the Helix Water District Board of Directors supports Assembly 8111533 (Holden): Income Tax Exemption for Water Efficiency Rebates.


AYES:

NOES:

ABSENT:


Sandra L Janzen, Secretary of the Board

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Settii1g5tandards of Excellence In Public Servlce

Administration Office 7811 University Avenue. La Mesa, California 91942-0427


April 3, 2019

The Honorable Phil Ting California State Assembly State Capitol Sacramento, CA 95814 Via Email: [email protected]

RE: Assembly Bill 1486 (Ting) - OPPOSE UNLESS AMENDED local Agencies: Surplus Land [As Introduced February 2, 2019]

Dear Assembly Member Ting:

Helix Water District respectfully opposes Assembly Bill 1486 (Ting) as introduced on February 2, 2019, unless amended. AB 1486 requires public agencies to offer their land for development before leasing their property.

AB 1486 requires special districts and other local agencies to offer the right of first refusal to affordable housing developers, schools and parks before selling, leasing or otherwise conveying their land. The new requirements in the bill are problematic for many public agencies that have valid reasons to lease or otherwise protect land they own, such as buffer land surrounding a wastewater plant or the long-term lease of cemetery district property that will be needed for future internments.

Under AB 1486, attempting to lease land in support of an agency's governmental function would trigger the requirements for the disposal of surplus land. As written, AB 1486 would require agencies to offer up property which may be incompatible for use for housing, schools or parks. AB 1486 would also make it more difficult to protect an agency's land for a future governmental use.

Helix Water District treats and delivers water to 275,000 residents in eastern San Diego County. Historically, the district has held land when it was identified for potential future use related to district operations. In our El Monte Valley, exploration of future district use of the land was a lengthy process, spanning several years. Ground leasing the land for private and community benefit uses during that time has enabled the district to shift liability and maintenance costs, benefiting the district, its ratepayers and the end-users of the property. Additionally, having tenants on the property have helped to maintain the property value while also decreasing brush hazards and transient occurrences, which benefits the surrounding community as a whole.

Board of Directors Daniel H. McMillan, President Mark Gracyk, Vice President DeAna R. Verbeke, Division 2 Kathteen Coates Hedberg, Division 4 Joel A. Scalzitti, Division 5

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As written, Assembly Bill 1486 would not lead to the production of additional surplus land for housing, schools or parks. Rather, it would lead to the holding of property by agencies in a vacant state. Vacant lots are not generally deemed desirable in communities, as they are known to create nuisance, trespass and blight conditions such as barbed-wire fencing and collection of debris and weeds in between maintenance. For this reason, most agencies are being encouraged by local governments to allow interim uses of land to enhance the communities in which they sit. Each agency already has the fiduciary duty to maintain its real property assets in a manner that is consistent with its articles of incorporation and which serves to forward its core civil services.

We respectfully request AB 1486 be amended to limit the scope of the bill to the sale of surplus land and not include property for lease. Our opposition is not a challenge to the need for affordable housing, but a validation of the need for local flexibility when it comes to proper governmental land use management.

For these reasons, Helix Water District respectfully opposes AB 1486 unless it is amended.


Sincerely,




The Honorable Shirley Weber, California's 79th Assembly District

The Honorable Randy Voepel, California's 71st Assembly District [email protected],gov

Rylan Gervase, Legislative Representative, California Special Districts Association [email protected]


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OPPOSING (UNLESS AMENDED) ASSEMBLY BILL 1486 (TING): LOCAL AGENCIES SURPLUS LAND

WHEREAS, Helix Water District Board of Directors have historically held land when It was identified for potential future use related to district operations; and

WHEREAS, ground leasing the land for private and community benefit uses has enabled the district to shift liability and maintenance costs, benefiting the district, ratepayers and the --...I ··----.., --1:..a.L- -------"'••• --..I t:11u·u;:,c1;:, u1 u1c p1upc1 lY, emu

WHEREAS, tenants on said land have helped to maintain the property value while decreasing brush hazards and transient occurrences to the benefit of the surrounding community; and

WHEREAS, Assembly Bill 1486 (Ting) would require special districts and other public agencies to offer a right of first refusal to affordable housing developers, schools and park agencies before leasing, selling or otherwise conveying any of the agency's land; and

WHEREAS, Assembly Bill ;1.486 as written would be problematic for many public agencies that have valid reasons to lease or otherwise protect land they own. It could also result in agencies keeping properties vacant, which does not typically benefit nor enhance the surrounding communities.

NOW, THEREFORE, BE IT RESOLVED, that the Helix Water District Board of Directors opposes Assembly Bill 1486 (Ting) unless amended: Local Agencies Surplus Land.

PASSED, ADOPTED AND APPROVED this 3rd day of April 20191 by the following vote:

AYES:

NOES:

ABSENT:



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Setting Standards of Excellence In PubRc Service


619-466-0585 [email protected] hwd.corn

April 3, 2019

Honorable Todd Gloria California State Assembly State Capitol, Room 2176 Sacramento, CA 95814 Via Email: [email protected]

Honorable Adam Gray California State Assembly State Capitol, Room 3152 Sacramento, CA 95814 Via Email: [email protected]

RE: Assembly Bill 1588 (Gloria/Gray) - SUPPORT Drinking Water and Wastewater Operator Certification Programs for Veterans

Dear Assembly Members Gloria and Gray:

Helix Water District is pleased to support your bill, Assembly Bill 1588, which would ensure that military veterans transitioning from military service into civilian water and wastewater treatment operator occupations receive appropriate and satisfactory credit towards California certifications for the work experience, education, skills and knowledge gained while working on water and wastewater treatment systems during military service.

Helix Water District treats and delivers water to 275,000 residents in eastern San Diego County. As such, we understand that water and wastewater treatment operators are essential in well established industries with an aging infrastructure and workforce. Replacing critical infrastructure components, like 100-year-old pipes and pumps, while maintaining service to customers, is one of the greatest challenges in the industry today. Additionally, the high level of employee retirements, new technologies and the increased demand for safe drinking water contribute significantly to the pressure on the industry to adapt to these ever-changing needs.

As water and wastewater industries are experiencing an aging and retiring workforce, more than 250,000 U.S. military members leave service each year according to the Department of Defense. Dozens of state offices and agencies and thousands of private organizations are focused on assisting service members, veterans and their families to successfully reintegrate after military service, yet despite the abundance of available resources, there continue to be missed opportunities to find, educate, certify and employ veterans transitioning to civilian employment - particularly within the water and wastewater treatment operator field.

Projections of the demand for water operators are fueled by a high level of expected retirements among the experienced workforce and the continued increase in the demand on water by both residential and commercial customers. According to recent industry reports, thousands of water employees are aging and expected to retire from their positions in coming years, which will lead to a huge workforce gap to fill for utilities and other water employers. New entrants to the industry need


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to have demonstrated education and training to obtain state certification and incumbent workers need additional credits when they seek higher levels of state certification.

Several states - including Washington, Texas, North Carolina and Pennsylvania - already provide paths for military veterans to navigate the civilian water system operator certification process and allow the application of equivalency standards to credit military experiences toward state or industry certifications in the water and wastewater treatment and distribution fields.

However, there is no similar pathway or equivalency standard process for military veterans in California. Assembly Bill 1588 seeks to provide this critical pathway. The California water industry and other similar skilled trade industries would have a much larger pool of highly skilled, motivated and talented individuals eager to continue their service to the public and the community at large if military veterans were offered experience credit toward state or industry certifications.

For these reasons, Helix Water District is pleased to support AB 1588.


Sincerely,



cc: Honorable Brian Jones, California's 38th Senate District [email protected]


Honorable Randy Voepel, California's 71st Assembly District [email protected]


The San Diego County Water Authority [email protected]

Otay Water District [email protected]

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SUPPORTING ASSEMBLY BILL 1588 (GLORIA/GRAY): DRINKING WATER AND WASTEWATER OPERATOR CERTIFICATION PROGRAMS FOR VETERANS

WHEREAS, Helix Water District Board of Directors understands that water and wastewater treatment operators are essential in well-established industries with an aging Infrastructure and workforce; and

WHEREAS, replacing critical infrastructure components, such as 100-year-old pipes and pumps, while maintaining service to customers can be challenging with the high level of employee retirements, new technologies and the increased demand for safe, affordable drinking water; and

WHEREAS, Assembly Bill 1588 would provide a path of reciprocity for military veterans to navigate the civilian water system operation process in California, providing additional job opportunities for veterans while also providing the state's water industry with a larger pool of skilled and experienced Individuals; and

WHEREAS, Assembly Bill 1588 would ensure that military veterans transitioning from military service into civilian water and wastewater treatment operator occupations receive appropriate and satisfactory credit towards California certifications for the work experience, education, skills and knowledge gained while working on water and wastewater treatment systems during military service; and

WHEREAS, Assembly Bill 1588 Is co-sponsored by the San Diego County Water Authority and Otay Water District.

NOW, THEREFORE, BE IT RESOLVED, that the Helix Water District Board of Directors supports Assembly Bill 1588 {Gloria/Gray): Drinking Water and Wastewater Operator Certification Programs for Veterans.


AYES:

NOES:

ABSENT:



Documents

BOARD REPORT - hwd.com · the net income from the trust wouid be transferred on an ongoing basis to the Safe Drinking Water Fund. Recommendation Unlike a regressive water tax, which