MINUTES OF MEETINGBOARD OF DIRECTORS, ORANGE COUNT Y WATER DISTRICT

March 15, 2017, 5:30 p.m.

President Bilodeau called to order the March 15, 2017 regular meeting of the Orange County WaterDistrict Board of Directors at 5:30 p.m. in the Boardroom at the District office. Following thePledge of Allegiance to the Flag, the Secretary called the roll and reported a quorum as follows.

DirectorsPhilip AnthonyDenis BilodeauShawn DewaneCathy GreenDina NguyenVicente SarmientoStephen SheldonJames VanderbiltBruce WhitakerRoger Yoh

(absent)(absent)

StaffMichael R. Markus, General ManagerJoel Kuperberg, General CounselJudy-Rae Karlsen, Assistant District Secretary

PRESENTATION OF ACWA/JPIA RETROSPECTIVE PREMIUM ADJUSTMENTSTABILIZATION REFUND

Association of California Water Agencies/Joint Powers Insurance Authority Chief Financial OfficerAndy Sells presented the District with a check in the amount of $102,585 representing aretrospective premium adjustment stabilization refund.

VISITORS PARTICIPATION

There were no visitors wishing to address the Board at tonight’s meeting.

PUBLIC HEARING

1. Public Hearing on 2015-16 Engineer’s Report on Groundwater Conditions, Water Supply andBasin Utilization

President Bilodeau opened the Public Hearing to review the 2015-16 Engineer’s Report onGroundwater Conditions, Water Supply and Basin Utilization. District Engineer Chris Olsenreviewed the key findings of the 2015-16 Engineer’s Report as contained in the staff report fortonight’s meeting. He noted that groundwater production totaled 277,090 acre-feet (af), theaccumulated overdraft on June 30, 2016 was 379,000 af, and the annual overdraft was 141,000 af.Mr. Olsen reported that the amount of groundwater stored in the basin increased by 2,000 af andthat water demands totaled 367,000 af.

President Bilodeau then opened the hearing for public comment. There being no persons wishing toaddress the Board, President Bilodeau declared the hearing closed and the Board took the following

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action. Upon motion by Director Anthony, seconded by Director Green, the following resolutionwas unanimously adopted [8-0].Ayes: Anthony, Bilodeau, Dewane, Green, Nguyen, Sarmiento, Sheldon, VanderbiltAbsent: Whitaker, Yoh

MOTION NO. 17-34RECEIVING AND FILING ENGINEER’S REPORT ON GROUNDWATER CONDITIONS,

WATER SUPPLY AND BASIN UTILIZATION

Upon motion by Director Anthony, seconded by Director Green and carried [8-0], the 2015-16Engineer’s Report on Groundwater Conditions, Water Supply and Basin Utilization for the wateryear ending June 30, 2016 is hereby received and filed, with the inclusion of the first twoparagraphs of the Water Demand Forecast as included in the Engineer’s Report presented at theMarch 1 Board meeting.Ayes: Anthony, Bilodeau, Dewane, Green, Nguyen, Sarmiento, Sheldon, VanderbiltAbsent: Whitaker, Yoh

CONSENT CALENDAR

Director Vanderbilt removed Item No. 20, Proposed Fiscal Year 2017-18 Water Purchase Budget,from the Consent Calendar. The remainder of the Consent Calendar was approved upon motion byDirector Anthony, seconded by Director Green and unanimously carried [8-0] as follows:Ayes: Anthony, Bilodeau, Dewane, Green, Nguyen, Sarmiento, Sheldon, VanderbiltAbsent: Whitaker, Yoh

2. Approval of Cash Disbursements

MOTION NO. 17-35APPROVING CASH DISBURSEMENTS

Payment of bills for the period February 23 through March 8, 2017 in the total amount of$3,781,679.55 is ratified and approved.

3. Amendment to Lease Agreement with Mike Raahauge’s Shooting Enterprises

RESOLUTION NO. 17-3-25AUTHORIZING AMENDMENT TO LEASE WITH ELAINE RAAHAUGE D.B.A.

MIKE RAAHAUGE’S SHOOTING ENTERPRISES

WHEREAS, pursuant to Resolution No. 95-2-21 adopted February 15, 1995, and ResolutionNo. 05-11-124 adopted November 2, 2005, as subsequently amended, the OCWD Board granted alease to Elaine Raahauge d.b.a. Mike Raahauge’s Shooting Enterprises to conduct trap and skeetand sporting clay shooting, game managed bird (pheasant) hunting, dog training and other relatedrecreational activities, and farming of alfalfa, barley or beans, on 135 acres of District land on theNorth Bluff area at Prado Basin;

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WHEREAS, the Property Management Committee has recommended approval of AmendmentFive to the Lease Agreement with Elaine Raahauge d.b.a. Mike Raahauge’s Shooting Enterprisesproviding for a one-month extension of the shooting range lease through April 30, 2017, with allterms and conditions remaining the same;

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyapprove the aforementioned Amendment Five to the Lease Agreement with Elaine Raahauge d.b.a.Mike Raahauge’s Shooting Enterprises; and, upon approval as to form by District General Counsel,its execution on behalf of the District officers is authorized.

Amendment to the Administrative Service Agreement with Prudential Retirement

RESOLUTION NO. 17-3-26APPROVING AMENDMENT TO ADMINISTRATIVE SERVICE AGREEMENT

WITH PRUDENTIAL RETIREMENT

RESOLVED, that the Amendments to the Administrative Service Agreements with PrudentialRetirement for both the 401(a) Money Purchase Plan and the 457(b) Deferred Compensation Planare hereby approved; and, upon approval as to form by District General Counsel, its execution onbehalf of the District officers is authorized.

ITEM RECOMMENDED FOR APPROVAL AT PROPERTY MANAGEMENT COMMITTEEMEETING HELD FEBRUARY 24, 2017

5. License Agreement with SCE for the MCAS-10 Monitoring Well Site

RESOLUTION NO. 17-3-27AUTHORIZING LICENSE AGREEMENT WITH SOUTHERN CALIFORNIA EDISON

COMPANY FOR MCAS-10 MONITORING WELL SITE

RESOLVED, that the License Agreement with Southern California Edison Company required forthe MCAS-10 well site (one of the key wells installed to monitor the trichloroethylene plume ingroundwater) is authorized at a cost of $2,515 for the five-year period December 1, 2017 throughNovember 30, 2022; and, upon approval as to form by District General Counsel, its execution onbehalf of the District officers is authorized.

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Amendment to Lease with Sandwood Enterprises Inc. d.b.a. Orange County Sandbagger

RESOLUTION NO. 17-3-28AUTHORIZING AMENDMENT TO LEASE WITH SANDWOOD ENTERPRISES INC.

D.B.A. ORANGE COUNTY SANDBAGGER

WHEREAS, pursuant to Resolution No. 07-4-50 adopted April 4, 2007, as amended, OCWDentered into a lease agreement with Sandwood Enterprises, Inc., d.b.a. Orange County Sandbagger,for a sandbagging operation at 2424 No. Batavia Street in the City of Orange through March 31,2017; and

WHEREAS, the Property Management Committee of this Board has recommended approval ofAmendment No. 2 to such lease extending the Lease expiration date to March 31, 2018, with allother terms and conditions of the Lease to remain the same

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyapprove the aforementioned Amendment Two to such as outlined herein; and, upon approval as toform by District General Counsel, its execution by the President or Vice President and GeneralManager or District Secretary is authorized.

7. Amendment to Lease with Harvest Landscape Enterprises, Inc.

RESOLUTION NO. 17-3-29AUTHORIZING AMENDMENT TO LEASE WITH HARVEST LANDSCAPE ENTERPRISES

WHEREAS, pursuant to Resolution No. 07-3-27 adopted March 7, 2007, as amended, the OCWDBoard authorized a Lease to SS&K Landscape Maintenance, Inc. for a container nursery at 950 W.Lincoln Avenue, Orange; and

WHEREAS, pursuant to Resolution No. 11-3-41 adopted March 16, 2011, OCWD consented to theassignment of SS&K’s interests to Harvest Landscape Enterprises, Inc.; and

WHEREAS, the Property Management Committee of this Board has recommended issuance ofAmendment Three to such Lease to extend the Lease expiration date to March 31, 2022 at a rent of$1,728 per month, with all other Lease terms to remain the same;

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyapprove Amendment Three to the aforementioned Lease as described herein; and, upon approval asto form by District General Counsel, its execution by the District officers is authorized.

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Agreement with OCTA for Relocation of District Utility Facilities

RESOLUTION NO. 17-3-30AUTHORIZING UTILITY AGREEMENT WITH OCTA FOR RELOCATION OF DISTRICT

UTILIT Y FACILITIES DURING THE CALTRANS I-405 IMPROVEMENT PROJECT

RESOLVED, that Orange County Transit Authority (OCTA) Utility Agreement No. UK214654required for the relocation of District utility facilities during the Caltrans Interstate 405 freewayImprovement Project is authorized; and, upon approval as to form by District General Counsel, itsexecution by the District staff is authorized.

ITEMS RECOMMENDED FOR APPROVAL AT RETIREMENT COMMITTEE MEETINGHELD FEBRUARY 28, 2017

9. Retirement Committee Employee Vacancy Appointments

MOTION NO. 17-36APPROVING RETIREMENT COMMITTEE EMPLOYEE VACANCY APPOINTMENTS

Appointment of the following employees to the Retirement Committee is authorized as follows:Sitting Member - Jason Dadakis (re-appointed for two year term);First Alternate - Dave Bolin (re-appointed for one year term);Second Alternate - Vishav Sharma (re-appointed for one year term)

10. Agreements to the 401(a) and 457(b) Plan Service Agreements with Wells Fargo Advisors

RESOLUTION NO. 17-3-31APPROVING AMENDMENTS TO THE 401(A) AND 457(B) PLAN SERVICE AGREEMENTS

WITH WELLS FARGO ADVISORS

RESOLVED, that Amendments to the Service Agreements with Wells Fargo Advisors for both the401(a) Money Purchase Plan and the 457(b) Deferred Compensation Plan is authorized providingfor a decrease in fees from 8.5 basis points to 8 basis points; and, upon approval as to form byDistrict General Counsel, its execution by the District staff is authorized.

ITEMS RECOMMENDED FOR APPROVAL AT COMMUNICATION AND LEGISLATIVELIAISON COMMITTEE MEETING HELD MARCH 2, 2017

l 1. Federal Legislative Update

MOTION NO. 17-37DIRECTING STAFF TO SEND LETTER OF SUPPORT FOR H.R. 1071 ASSISTANCE,

QUALITY AND AFFORDABILITY ACT, TONKO (D-NY)

Staff is directed to send a letter to the author supporting State Revolving Fund provisions ofH.R.1071, Assistance, Quality, and Affordability Act, and other District relevant provisions.

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12. State Legislative Update

MOTION NO. 17-38ADOPTING POSITONS ON STATE LEGISLATION

The following positions on State legislation are hereby adopted:SCA 4 (Hertzberg) Water ConservationSB 5 (De Leon) California Drought, Water, Parks, Climate,Coastal Protection, and Outdoor Access for all Act of 2018

WatchSupport and direct staff tosend a letter to the author

13. 2017 OCWD Legislative Platform

MOTION NO. 17-39APPROVING THE 2017 OCWD LEGISLATIVE PLATFORM

The 2017 OCWD Legislative Platform is hereby approved as presented (on file at the Districtoffice).

ITEMS RECOMMENDED FOR APPROVAL AT WATER ISSUES COMMITTEE MEETINGHELD MARCH 8, 2017

14. Purchase Order to Agilent Technologies for Renewal of Service Support Agreement to CoverLaboratory Analytical Systems

RESOLUTION NO. 17-3-32AUTHORIZING PURCHASE ORDER TO AGILENT TECHNOLOGIES FOR RENEWAL OFSERVICE SUPPORT AGREEMENT TO COVER GAS CHROMATOGRAPHS (GC) AND GAS

CHROMATOGRAPHS/ MASS SPECTROMETERS (GC/MS) IN THE LABORATORY

RESOLVED, that issuance of a Purchase Order is authorized to Agilent Technologies is authorizedin the amount of $84,110 for renewal of Support Service Agreement, with prepayment optioncommencing March 21, 2017 to cover specified analytical systems used with the OCWDLaboratory.

15. Completion of Contract No. SG-2016-1 with Beks Acquisition Inc. Dba BC2 Environmentalfor Monitoring Well OCWD-BS24C Construction

RESOLUTION NO. 17-3-33ACCEPTING COMPLETION OF CONTRACT NO. SG-2016-1, SUNSET GAP MONITORING

WELL BS24C (BEKS ACQUISITION INC. DBA BC2 ENVIRONMENTAL)

WHEREAS, the District staff has submitted its report that Beks Acquisition, Inc. dba BC2Environmental has completed work under Contract No. SG-2016-1, Sunset Gap Monitoring WellBS24C; and

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WHEREAS, staff has recommended that the District accept completion of said work and that aNotice of Completion be filed for recordation and the balance of payment be made, pursuant to theterms and conditions of such contract;

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyresolve as follows:

Section 1: Work under such contract is accepted as complete, and staff is authorized and directed toexecute a Notice of Completion and record said Notice in the Office of the County Recorder.

Section 2: Upon expiration of the interim lien period, providing no liens have been filed, paymentof the balance due under such contract shall be made.

16. Award Contract No. GBM-2017-1: East Newport Mesa Groundwater InvestigationMonitoring Well Installations to ABC Liovin Drilling, Inc.

RESOLUTION NO. 17-3-34AWARDING CONTRACT NO. GBM-2017-1: EAST NEWPORT MESA GROUNDWATER

INVESTIGATION MONITORING WELL INSTALLATIONS TOABC LIOVIN DRILLING, INC.

WHEREAS, a Notice Inviting Bids for Contract No. GBM-2017-1, East Newport MesaGroundwater Investigation Monitoring Wells Installations, was published in The Orange CountyRegister on February 6, 2017; and

WHEREAS, the following bids were received and opened on February 23, 2017:

ABC Liovin Drilling, Inc.Cascade Drilling, LPBC2 EnvironmentalYellow Jacket DrillingJensen Drilling Company

$62,419$81,495$85,095$111,240$122,240

WHEREAS, the Water Issues Committee has recommended award of said contract to the lowestresponsive bidder, ABC Liovin Drilling, Inc. in the amount of $62,419; and

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyresolve as follows:

Section 1: The Affidavit of Publication of Notice Inviting Bids for Contract No. GBM-2017-1 ishereby received and filed.

Section 2: The lowest responsive bid of ABC Liovin Drilling, Inc. in the amount of $62,419 isaccepted and all other bids are rejected.

Section 3: The District officers are authorized to execute an agreement on behalf of the District, in

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a form heretofore approved by this Board, with ABC Liovin Drilling, Inc. pursuant to the terms ofits proposal.

Section 4: The District General Counsel is authorized to approve the Performance and Labor andMaterials Bonds submitted by said contractor on behalf of the District, provided the bonds complywith the requirements of the bid proposal.

Section 5: Staff is directed to notify the unsuccessful bidders of the action taken herein and, uponexecution of the agreement by the successful bidder, to return to the unsuccessful bidders their BidBonds.

17. Amendment to Agreement with Ruth Villalobos and Associates to Support Prado BasinFeasibility Study

RESOLUTION NO. 17-3-35AUTHORIZING AMENDMENT TO AGREEMENT WITH RUTH VILLALOBOS AND

ASSOCIATES TO SUPPORT THE PRADO BASIN FEASIBLITY STUDY

WHEREAS, pursuant to Resolution No. 16-6-76 adopted June 15, 2016, OCWD authorizedissuance of Agreement No. 1170 to Ruth Villalobos and Associates to support the Prado BasinFeasibility Study; and

WHEREAS, the Water Issues Committee of this Board has recommended issuance of AmendmentNo. I to such Agreement for an amount not to exceed $60,000 to provide additional reportpreparation services for the Prado Basin Feasibility Study;

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyauthorize Amendment No. 1 to such Agreement as outlined herein; and, upon approval as to formby District General Counsel, its execution by the District staff is authorized.

18. Notice of Completion for Contract No. LPRB-2015-1: La Palma Recharge Basin Project andRatify Change Orders 1-4 with Los Angeles Engineering, Inc.

RESOLUTION NO. 17-3-36ACCEPTING COMPLETION OF CONTRACT NO. LPRB-2015-1: LA PALMA RECHARGE

BASIN PROJECT AND RATIFYING CHANGE ORDERS 1-4 WITHLOS ANGELES ENGINEERING, INC.

WHEREAS, the District staff has submitted its report that Los Angeles Engineering, Inc. hascompleted work under Contract No. LPRB-2015-1, La Palma Recharge Basin Project; and

WHEREAS, staff has advised of issuance of Change Order Numbers 1 - 4 for a total amount of$77,543; and

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WHEREAS, staff has recommended that the District accept completion of said work and that aNotice of Completion be filed for recordation and the balance of payment be made, pursuant to theterms and conditions of such contract;

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyresolve as follows:

Section 1: Work under such contract is accepted as complete, and staff is authorized and directed toexecute a Notice of Completion and record said Notice in the Office of the County Recorder.

Section 2: Issuance of Change Orders No. 1-4 are hereby ratified.

Section 3: Upon expiration of the interim lien period, providing no liens have been filed, paymentof the balance due under such contract shall be made.

19. Award Contract No. GBM-2017-3: South Basin Remedial Investigation to Yellow JacketDrilling, and Amendment to Agreement with Aquilogic, Inc.

RESOLUTION NO. 17-3-37AWARDING CONTRACT NO. GBM-2017-3: SOUTH BASIN REMEDIAL INVESTIGATION,TO YELLOW JACKET DRILLING AND AUTHORIZING AMENDMENT TO AGREEMENT

WITH ACQUILOGIC, INC. FOR DATABASE MANAGEMENT

WHEREAS, the District has determined that substantial Volatile Organic Compound (VOC) andperchlorate groundwater contamination has occurred in the shallow groundwater in the South Basinarea of the Orange County groundwater basin and that this contamination has been detected in adeep Irvine Ranch Water District production well; and

WHEREAS, in connection with such VOC and perchlorate groundwater contamination and,pursuant to Resolution No. 16-5-62 adopted May 18, 2016, OCWD approved the South BasinAdditional Monitoring Well Program, and in connection therewith adopted the Final InitialStudy/Mitigated Negative Declaration, approved the Geologist’s Report, and authorized issuance ofa Request for Proposals for construction management services; and

WHEREAS, pursuant to Resolution No. 16-10-139 adopted October 19, 2016, OCWD adopted theSouth Basin Additional Groundwater Monitoring Program Re-circulated Mitigated NegativeDeclaration to account for revised well locations SAM-7 and SAM- 11; and

WHEREAS, the District staff has advised that subsequent to adoption of the aforementioned Re-circulated Mitigated Negative Declaration for such project, additional refinement has occurred tothe project which has required the relocation of monitoring wells SAM-8, SAM-9 and SAM-13("Revised Project"); and

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WHEREAS, to meet the requirements of the California Environmental Quality Act (CEQA), staffhas prepared Addendum No. 1 to the Final Recirculated Mitigated Negative Declaration for theSouth Basin Additional Groundwater Monitoring Program ("FRMND") to evaluate the potentialshort-term construction impacts and long-term operational impacts associated with the RevisedProject; and

WHEREAS, Addendum No. 1 has determined that the Revised Project would not cause any newimpacts, substantially increase or result in any more severe impacts compared to the level ofimpacts identified in the FRMND; and

WHEREAS, a Notice Inviting Bids for Contract No. GBM-2017-3, South Basin Protection ProjectAdditional Monitoring Well Installations for the Revised Project, was published in The OrangeCounty Register on February 2, 2017; and

WHEREAS, the following bids were received and opened on February 22, 2017:

Yellow Jacket DrillingBC2 EnvironmentalCascade DrillingJensen Drilling Company

$ 442,525$ 443,777$ 465,638$ 577,216

WHEREAS, the District staff has recommended award of said contract to the lowest responsivebidder, Yellow Jacket Drilling in the amount of $442,525; and

WHEREAS, Agreement No. 0827 was previously issued to Aquilogic, Inc. to providehydrogeologic and remedial investigation services for the South Basin Groundwater ProtectionProject; and

WHEREAS, the Water Issues Committee has recommended issuance of Amendment No. 3 to suchAgreement with Aquilogic, Inc. in the amount of $58,100 for services to update and maintain theSouth Basin project database for 12 months and provide access to Hargis + Associates (who waspreviously hired to provide NCP consulting services in the South Basin area);

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyresolve as follows:

Section 1: Based on the evidence presented to the Board of Directors, including the FRMND, staffreport, initial study and Addendum No. 1 to the FRMND, the Board of Directors of the OrangeCounty Water District does hereby find that pursuant to State CEQA Guidelines Section 15164:

(1) No substantial changes are proposed in the project covered by the FRMND, which willrequire major revisions in the FRMND due to the involvement of new significantenvironmental effects or a substantial increase in the severity of previously identifiedsignificant effects. As the Initial Study indicates, the Revised Project would not result in anyenvironmental impacts not previously addressed in the FRMND.

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(2) No substantial changes would occur with respect to the circumstances under which theRevised Project covered by the FRMND is undertaken, which will require major revisionsof the FRMND due to the involvement of new significant environmental effects or asubstantial increase in the severity of previously identified significant effects. The physicaland environmental circumstances analyzed in the FRMND with respect to the RevisedProject are not substantially different than those analyzed in the FRMND.

(3) No new information of substantial importance, which was not known and could not havebeen known with the exercise of reasonable diligence at the time the FRMND was adopted,shows either that the Revised Project will have any significant effects not discussed in theFRMND, or that any mitigation measures or alternatives are considerably different thanthose analyzed in the FRMND. The information in the FRMND regarding theenvironmental impacts, environmental circumstances and mitigation measures relating tothe Revised Project have not changed.

(4) Based on the foregoing, the Final Mitigated Negative Declaration as augmented byAddendum No. 1, adequately analyzes all of the potential impacts of the revised SAM-7 andSAM- 11 well locations. The Board of Directors has considered the adopted FRMND,together with Addendum No. 1, prior to approving the Revised Project, awarding ContractNo. GBM-2017-3, and approving Amendment No. 3 to Agreement 0826 with Aquilogic,Inc.

Section 2: The Affidavit of Publication of Notice Inviting Bids for Contract No. GBM-2017-3,South Basin Protection Project Additional Monitoring Well Installations, is received and filed.

Section 3: The lowest responsive bid of Yellow Jacket Drilling in the amount of $442,525 isaccepted and all other bids are rejected.

Section 4: The District officers are authorized to execute an Agreement on behalf of the District, ina form heretofore approved by this Board with Yellow Jacket Drilling pursuant to the terms of itsproposal.

Section 5: The District General Counsel is authorized to approve the Performance and Labor andMaterials Bonds submitted by said contractor on behalf of the District, provided the bonds complywith the requirements of the bid proposal.

Section 6: The District staff is directed to notify the unsuccessful bidders of the action taken hereinand, upon execution of the agreement by the successful bidder, to return to the unsuccessful bidderstheir Bid Bonds.

Section 7: The aforementioned Amendment No. 3 to Agreement 0826 with Aquilogic, Inc. isauthorized as outlined herein.

Section 8: Staff is authorized to file a Notice of Determination with respect to the Revised Projectand the other actions approved herein.

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20. Proposed Fiscal Year 2017-18 Water Purchase Budget

This item was removed from the Consent Calendar and considered later in tonight’s meeting.

ITEM RECOMMENDED FOR APPROVAL AT ADMINISTRATION AND FINANCE ISSUESCOMMITTEE MEETING HELD MARCH 9, 2017

21. Monthly Cash Control Report

MOTION NO. 17-40RECEIVING AND FILING CASH CONTROL REPORT

The Summary Cash and Cash Equivalents Control Report dated February 28, 2017 are herebyreceived and filed.

22. Investment Portfolio Holdings Reports

MOTION NO. 17-41RECEIVING AND FILING INVESTMENT PORTFOLIO HOLDINGS REPORTS

The Investment Portfolio Holdings Reports dated February 28, 2017 are hereby received and filed.

23. MOU with California State University, Fullerton Auxiliary Services Corporation forContinued Operation of the Center for Demographic Research

RESOLUTION NO. 17-3-38AUTHORIZING MOU WITH CALIFORNIA STATE UNIVERSIT Y, FULLERTON

AUXILIARY SERVICES CORPORATION FOR CONTINUED OPERATION OF THECENTER FOR DEMOGRAPHIC RESEARCH

WHEREAS, since 1998, OCWD has provided financial participation in the California StateUniversity, Fullerton Auxiliary Services Corporation for the Operation of the Center forDemographic Research; and

WHEREAS, the Administration and Finance Issues Committee has presented and recommendedexecution of a Memorandum of Understanding with California State University, Fullerton AuxiliaryServices Corporation for the Continued Operation of the Center for Demographic Research forFY2017-18, FY2018-19 and FY 2019-20; and payment in the amount of $43,803 to California StateUniversity Fullerton Auxiliary Services Corporation, to be invoiced on a quarterly basis;

NOW, THEREFORE, the Board of Directors of the Orange County Water District does herebyapprove the aforementioned MOU with California State University, Fullerton Auxiliary Services asdescribed herein; and, upon approval as to form by District General Counsel, its execution by theDistrict staff is authorized.

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24. Budget Increase for Legal Expenses - Burke, Williams, Sornesen

MOTION NO. 17-42AUTHORIZING BUDGET INCREASE FOR LEGAL EXPENSES WITH BURKE, WILLIAMS,

SORENSEN FOR PERSONNEL LABOR-RELATED COSTS

An increase of $25,000 to the Human Resources General Fund budget for personnel labor-relatedlegal costs is hereby authorized.

25. Budget Increase for Utility Costs to Operate Burris Pump Station

MOTION NO. 17-43AUTHORIZING BUDGET INCREASE FOR UTILIT Y COSTS

TO OPERATE BURRIS PUMP STATION

An increase of $350,000 is authorized to the Recharge Operations General Fund budget for utilityexpenses to operate the Burris Pump Station.

26. Budget Increase for Mosquito Abatement at Prado Wetlands

MOTION NO. 17-44AUTHORIZING BUDGET INCREASE FOR

MOSQUITO ABATEMENT AT PRADO WETLANDS

An increase of $90,000 is authorized to the Prado Wetlands General Fund budget for mosquitoabatement at the Prado Wetlands.

27. IBM Maximo Software Subscription and Support Renewal

RESOLUTION NO. 17-3-39AUTHORIZING PURCHASE ORDER TO IBM MAXIMO

SOFT WARE SUBSCRIPTION AND SUPPORT

RESOLVED, that issuance of a Purchase Order is authorized to IBM Maximo SoftwareSubscription and Support in the amount of $55,889 for system updates commencing April 1, 2017through March 31, 2018.

28. Proposed FY 2017-18 Budget R&R Fund Expenditure Review

MOTION NO. 17-45RECEIVING AND FILING THE PROPOSED FY 2017-18 BUDGET REPLACEMENT &

REFURBISHMENT FUND EXPENDITURE REVIEW

The proposed Fiscal Year 2017-18 Budget Replacement & Refurbishment (R&R) fund expenditurereview is hereby received and filed.

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ITEM REMOVED FROM THE CONSENT CALENDAR FOR CONSIDERATION

20. Proposed Fiscal Year 2017-18 Water Purchase Budget

Director Vanderbilt stated that the City of Anaheim is studying the proposed water purchase budgetas it relates to impacts on Anaheim’s future fees, noting that Anaheim might ask for considerationfor some modification to the pumping rate in the years ahead. Director Sarmiento requested thatstaff provide various pumping percentage scenarios and their financial impact on the ReplenishmentAssessment. He requested additional clarification from staff on plans to purchase water over andabove 65,000 acre-feet.

MOTION NO. 17-46RECEIVING AND FILING THE PROPOSED FISCAL YEAR 2017-18

WATER PURCHASE BUDGET

Upon motion by Director Green, seconded by Director Anthony and carried [8-0], the proposedFiscal Year 2017-18 Water Purchase Budget is hereby received and filed.Ayes: Anthony, Bilodeau, Dewane, Green, Nguyen, Sarmiento, Sheldon, VanderbiltAbsent: Whitaker, Yoh

INFORMA TIONAL ITEMS

29. Water Resources Report

There was no discussion of this item.

30. Santa Ana Watershed Project Authority Activities

Director Anthony updated the Board on SAWPA activities.

31. Committee/Conference/Meeting Reports

The Board reported on the following Committee meetings and noted the Minutes/Action Agendaswere included in tonight’s Board packet.

February 24 - Property Management CommitteeFebruary 28 - Retirement CommitteeMarch 02 - Communications and Legislative Liaison CommitteeMarch 08 - Water Issues CommitteeMarch 09 - Administration and Finance Issues Committee

32. VERBAL REPORTS

President Bilodeau reported that he and Director Sarmiento attended meetings in Washington DCwith the EPA and various members of Congress to discuss ways to finance the GWRS expansion.President Bilodeau provided the Board with bottles of GWRS water, noting that due to passage of arecent bill, OCWD is allowed to bottle GWRS water in limited quantities.

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33. ADJOURNMENT TO CLOSED SESSION

The Board adjourned to Closed Session at 6:05 p.m. as follows:

CONFERENCE WITH LABOR NEGOTIATORS[Government Code Section 54957.6]OCWD designated representative: Stephanie DosierG) Employee Organization: Orange County Employee Association

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION(LIABILIT Y CLAIMS) Significant exposure to litigation pursuant to Government CodeSection 54956.9(d)(2) Claimants: Farhan Ahmadi, Alehandrina Avila, Richard Bulot,Lizbeth Bustamante, Dafne Calderon, Dafne Cano, Nathan Castillo, Diego Cruz, AndrewDelatorre, David Domingo, Moses Domingo, Emily Flores, Lex Gallardo, Janell Gomez,Gibran Greer, Adilene Guapo, Jaxx Harth, Steven Hernandez, Yessica Hernandez, SamuelHerrera, Joanna Jin, Mimi Morales, Javier Munez, Damien Murillo, Cassius Parker, SadiePerez, Valeria Quintero, Ashley Alize Rojas, Ian Ramos, Marleny Ramos, Fernanda Rocha,Camila Rodriquez, Martin Rodriquez, Alice Torres, Aiden Vaca, John Velasco, DaniellaZavala

RECONVENE IN OPEN SESSION

The Board reconvened in Open Session at 6:25 p.m. whereupon General Counsel Kuperbergannounced that the Board by a unanimous vote of 8-0 took the following action in Closed Session:Ayes: Anthony, Bilodeau, Dewane, Green, Nguyen, Sarmiento, Sheldon, VanderbiltAbsent: Whitaker, Yoh

RESOLUTION NO. CS-17-3-1DENYING LIABILITY CLAIMS AND AUTHORIZING DISTRICT CLAIMS COMMITTEE TO

TAKE ACTION CONSISTENT WITH THAT ACTION WITH RESPECT TO ANY FUTURESIMILAR CLAIMS THAT ARE RECEIVED RELATING TO INJURIES FROM

THE CHILDREN’S DENTAL CLINIC IN ANAHEIM, CA

ADJOURNMENT

There being no further business to come before the Board, the meeting was adjourned at6:25 p.m.

District Secretary

Denis Bilodeau, President

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