S A W P A · 11/18/2014 · Presenter: Karen Williams Recommendation: ... A discussion ensued regarding the video script and storyboard. Commissioner Galleano noted the ... A preliminary

S A W P A

REGULAR COMMISSION MEETING TUESDAY, NOVEMBER 18, 2014 – 9:30 A.M.

AGENDA

1. CALL TO ORDER/PLEDGE OF ALLEGIANCE (Phil Anthony, Chair)

2. ROLL CALL

3. PUBLIC COMMENTSMembers of the public may address the Commission on items within the jurisdiction of the Commission; however, no action may betaken on an item not appearing on the agenda unless the action is otherwise authorized by Government Code §54954.2(b).

4. CONSENT CALENDARAll matters listed on the Consent Calendar are considered routine and non-controversial and will be acted upon by the Commissionby one motion as listed below.

A. APPROVAL OF MEETING MINUTES: NOVEMBER 4, 2014…………………………………...5Recommendation: Approve as posted.

B. TREASURER’S REPORT – OCTOBER 2014…………………………………………………….....9 Recommendation: Approve as posted.

5. NEW BUSINESSA. FY 2013-14 REPORT ON AUDIT (CM#8948)……………………………………………………....15

Presenter: Karen Williams Recommendation: It is recommended that the Commission review the Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended June 30, 2014, which includes the Report on Audit prepared by White Nelson Diehl Evans LLP:

1. Accept the CAFR, including the Report on Audit as prepared by White Nelson Diehl Evans;

2. Direct staff to file the Report with the respective government agencies as required by law; and,

3. Direct staff to submit the CAFR, with any necessary changes, for the Certificate of Achievement forExcellence in Financial Reporting Award, and the Certificate of Award for Outstanding FinancialReporting.

6. OLD BUSINESSNone.

SANTA ANA WATERSHED PROJECT AUTHORITY 11615 Sterling Avenue, Riverside, California 92503 • (951) 354-4220

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7. INFORMATIONAL REPORTSRecommendation: Receive and file the following oral/written reports/updates.A. I-15 AND CA91 IMPROVEMENTS (CM#8947)………………………………………………………...139

Presenter: Carlos Quintero

B. BRINE LINE MARKETING UPDATE Presenter: Rich Haller

C. STATE LEGISLATIVE REPORT…………………………………………………………………….....147 Presenter: Celeste Cantú

D. CASH TRANSACTIONS REPORT – SEPTEMBER 2014………………………………………….....169 Presenter: Karen Williams

E. INTER-FUND BORROWING – SEPTEMBER 2014 (CM#8945)…………………………………......175 Presenter: Karen Williams

F. PERFORMANCE INDICATORS/FINANCIAL REPORTING – SEPTEMBER 2014 (CM#8946)…177Presenter: Karen Williams

G. FIRST QUARTER FYE 2015 EXPENSE REPORTS…………………………………………….….....200 • Staff• General ManagerPresenter: Karen Williams

H. GENERAL MANAGER’S REPORT

I. CHAIR’S COMMENTS/REPORT

J. COMMISSIONERS’ COMMENTS

8. CLOSED SESSIONThere were no Closed Session items anticipated at the time of the posting of this agenda.

9. ADJOURNMENT

PLEASE NOTE: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Clerk of the Board at (951) 354-4230. Notification at least 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. Materials related to an item on this agenda submitted to the Commission after distribution of the agenda packet are available for public inspection during normal business hours at the SAWPA office, 11615 Sterling Avenue, Riverside, and available at www.sawpa.org, subject to staff’s ability to post documents prior to the meeting.

Declaration of Posting I, Kelly Berry, Clerk of the Board of the Santa Ana Watershed Project Authority declare that on Wednesday, November 12, 2014, a copy of this agenda has been uploaded to the SAWPA website at www.sawpa.org and posted in SAWPA’s office at 11615 Sterling Avenue, Riverside, California.

__/s/__________________________________ Kelly Berry, CMC

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http://www.sawpa.org/

http://www.sawpa.org/

2014 - SAWPA Commission Upcoming Meetings/Events (NOTE: Unless otherwise noted, all Commission Workshops/Meetings begin at 9:30 a.m., and are held at SAWPA.)

December 12/2/14 Canceled 12/2 – 12/5/14 ACWA Fall Conference

San Diego, California 12/16/14 Regular Commission Meeting

2015 - SAWPA Commission Upcoming Meetings/Events (NOTE: Unless otherwise noted, all Commission Workshops/Meetings begin at 9:30 a.m., and are held at SAWPA.)

January 1/6/15 Commission Workshop 1/20/15 Regular Commission Meeting

July 7/7/15 Commission Workshop 7/21/15 Regular Commission Meeting

February 2/3/15 Commission Workshop 2/17/15 Regular Commission Meeting

August 8/4/15 Commission Workshop 8/18/15 Regular Commission Meeting

March 3/3/15 Commission Workshop 3/17/15 Regular Commission Meeting

September 9/1/15 Commission Workshop 9/15/15 Regular Commission Meeting

April 4/7/15 Commission Workshop 4/21/15 Regular Commission Meeting

October 10/6/15 Commission Workshop 10/20/15 Regular Commission Meeting

May 5/5/15 Commission Workshop 5/19/15 Regular Commission Meeting

November 11/3/15 Commission Workshop 11/17/15 Regular Commission Meeting

June 6/2/15 Commission Workshop 6/16/15 Regular Commission Meeting

December 12/1/15 Commission Workshop 12/15/15 Regular Commission Meeting

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Page Intentionally Blank

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SAWPA COMMISSION WORKSHOP/REGULAR MEETING MINUTES

NOVEMBER 4, 2014

COMMISSIONERS PRESENT Phil Anthony, Chair, Orange County Water District Don Galleano, Western Municipal Water District Dave Slawson, Eastern Municipal Water District Mark Bulot, San Bernardino Valley Municipal Water District Terry Catlin, Inland Empire Utilities Agency COMMISSIONERS ABSENT Ron Sullivan, Eastern Municipal Water District ALTERNATE COMMISSIONERS PRESENT; NON-VOTING

Jasmin A. Hall, Alternate, Inland Empire Utilities Agency Harry Sidhu, Alternate, Orange County Water District Ed Killgore, Alternate, San Bernardino Valley Municipal Water District

STAFF PRESENT Celeste Cantú; Rich Haller; Larry McKenney; Karen Williams; Dean Unger; Kelly Berry; David Ruhl, Ian Achimore

OTHERS PRESENT Jason Uhley, Chief of Watershed Protection, Riverside County Flood Control

and Water Conservation District; Marc Rodabaugh, Stormwater Program Manager, San Bernardino County Flood Control District

The Regular Commission Meeting of the Santa Ana Watershed Project Authority was called to order at 9:30 a.m. by Chair Phil Anthony at the Santa Ana Watershed Project Authority, 11615 Sterling Ave., Riverside, California.

1. CALL TO ORDER/PLEDGE OF ALLEGIANCE

Commissioner Catlin led the Pledge of Allegiance.

2. ROLL CALL

Roll call was duly noted and recorded by the Clerk of the Board.

3. PUBLIC COMMENTS Chair Anthony called for public comments. There were no public comments.

4. CONSENT CALENDAR

A. APPROVAL OF MEETING MINUTES: OCTOBER 21, 2014

MOVED, approval of the Consent Calendar.

Result: Adopted (5-0) Motion/Second: Galleano/Bulot Ayes Anthony, Bulot, Catlin, Galleano, Slawson Nays: None Abstentions: None Absent: None

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SAWPA Commission Regular Meeting Minutes

November 4, 2014 Page 2

5. WORKSHOP DISCUSSION AGENDA

A. MS4 AND TMDL COMPLIANCE STATUS Jason Uhley, Chief of Watershed Protection, Riverside County Flood Control and Water Conservation District (RCFCWCD), provided a PowerPoint presentation on the Municipal Separate Storm Sewer System Permit. Issued to municipal operators of storm drains (cities and county), it requires elimination of non stormwater discharges to storm drains and reduction of pollutants to the maximum extent practicable. He noted progress made with water district conservation programs, lower irrigation runoff and elimination of illegal stormwater discharge resulting in reductions in dry weather flow; the next source of targeted pollution is vehicles, which are the source of some of the most significant water quality problems remaining in our watersheds. He reported on key water bodies such as the Lake Elsinore/Canyon Lake Nutrient Reduction Plan where data and field observations demonstrate significant progress. He next outlined the County’s Low Impact Development Best Management Practices (LID BMP) Design Handbook, their demonstration facility at the RCFCWCD, and adaptive implementation and the future of stormwater as a resource.

Commissioner Catlin asked if the EPA’s Waters of the U.S. ruling would impact these efforts. Mr. Uhley indicated it would since their stormwater system is flowing into Waters of the U.S.; he believes regional solutions with retention and capture facilities is the way to go, and if the EPA expands Waters of the U.S. via this ruling, it may be cutting into viable solutions.

Marc Rodabaugh, Stormwater Program Manager, San Bernardino County Flood Control District provided a PowerPoint presentation on the San Bernardino County NPDES MS4 Program and its accomplishments through regional collaboration and integration. He reviewed multi-benefit programs resulting in regional dry weather water flow capture and diversion. Program accomplishments include an updated WQMP and an online geodatabase which is the source of regional data used for EIRs and WQMPs. Water quality accomplishments include the Big Bear Lake Nutrient TMDL program, Basin Plan Amendment to develop and adopt recreational use standards, and a 3-tier, multi-year Bacteria Source Reduction Program.

Mr. Rodabaugh noted sediment-filled basins, some 40%-50% filled, impact the ability to collect and discharge stormwater. Commissioner Catlin offered any assistance with regulatory hurdles which could be provided.

Chair Anthony encouraged continued regional coordination; perhaps regional solutions could be considered with a comprehensive EIR to address the issues in their entirety.

6. NEW BUSINESS

A. LiDAR PILOT PROJECT AGREEMENT WITH BUREAU OF RECLAMATION (CM#8943) Dean Unger provided a PowerPoint presentation on the LiDAR (Light Detection And Ranging) Project Agreement with the Bureau of Reclamation, the grant for which was awarded in September 2014, for the creation of a pilot project using LiDar/Inferred Imagery for the purposes of landscape mapping. Grant funding is $38,488, with SAWPA’s local match funding of $22,605 from General Fund Licensing and $15,883 from the existing budget under 370-02 USBR Partnership Studies Fund. Chair Anthony asked how the money would be spent. Mr. Unger explained there would be a competitive bidding process, and the project will be managed by consultant Richard Schulman of Resource Strategies, Inc. LiDar is a remote sensing technology measuring distance by illuminating a target with a laser and analyzing the reflected light. It is utilized in combination with other technology to map invasive species, pervious/impervious areas, irrigated/non-irrigated landscape, among other applications.

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Commissioner Bulot noted this information will assist in assessing the overall big picture, which will be expanded in Round 2 of Prop 84.

MOVED, (1) authorize the transfer of $22,605 from General Fund Licensing-100 to Fund 370-02 USBR Partnership Studies; and, (2) authorize the existing budgeted balance under 370-02 to be applied toward the remaining 50% local share.

Result: Adopted (5-0) Motion/Second: Catlin/Galleano Ayes Anthony, Bulot, Catlin, Galleano, Slawson Nays: None Abstentions: None Absent: None

B. REQUEST FOR PROPOSALS (RFP) – INLAND EMPIRE BRINE LINE VIDEO (CM#8944) Dean Unger provided a PowerPoint presentation outlining the issued Request for Proposals and the criteria for selection. Staff’s recommendation was for award of contract to Goal Productions, in an amount not to exceed $19,775.25.

A discussion ensued regarding the video script and storyboard. Commissioner Galleano noted the video could be utilized not only for potential users but also our colleagues at OCSD, and should include the Brine Line beginning, middle, and end with OCSD. It was the consensus of the Commissioners to add language to the motion directing staff to report back to the Commission for review mid-storyboard.

Rich Haller advised the Commission that several SAWPA staff members have been meeting with marketing staff from Member Agencies WMWD, IEUA, and EWMD and are in the process of putting together a strategic marking plan, which will be brought to the Commission at a future meeting. A preliminary draft of the revised brochure for the Inland Empire Brine Line was provided for review. Commissioner Catlin was impressed by the brochure, noting all the tools available to market the Brine Line should be utilized.

MOVED, ratify issuance of a Request for Proposals (RFP) for video production services, authorize the General Manager to enter into a contract with Goal Productions in an amount not to exceed $19,775.25, and direct staff to report back to the Commission for review mid-storyboard.

Result: Adopted (5-0) Motion/Second: Galleano/Bulot Ayes Anthony, Bulot, Catlin, Galleano, Slawson Nays: None Abstentions: None Absent: None

7. OLD BUSINESS

None.

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8. INFORMATIONAL REPORTS

Recommendation: Receive and file the following oral/written reports/updates.

A. SAWPA ROUNDTABLE QUARTERLY STATUS REPORT – THIRD QUARTER B. CHAIR’S COMMENTS/REPORT

Chair Anthony inquired if the December 2nd meeting would be held, due to the ACWA fall conference in San Diego the first week of December. It was the consensus of the Commission that the December 2nd meeting will be cancelled. The December 16th meeting will proceed as scheduled.

Celeste Cantú announced the Municipal Information Systems Association of California (MISAC) recently awarded the SAWPA IS Department the Quality IT Practices Award for 2014.

C. COMMISSIONERS’ COMMENTS

D. DEDICATION OF THE PATTI BONAWITZ DEMONSTRATION GARDEN Celeste Cantú extended an invitation for everyone to join in the demonstration garden at the conclusion of the meeting for the dedication of the Patti Bonawitz Demonstration Garden.

9. CLOSED SESSION

There was no closed session. 10. ADJOURNMENT

There being no further business for review, Chair Anthony adjourned the meeting at 10:40 a.m.

Approved at a Regular Meeting of the Santa Ana Watershed Project Authority Commission on Tuesday, November 18, 2014. ______________________________________ Phil Anthony, Chair

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Investment Security Purchase Maturity Call Date Yield To Investment Market Value Unrealized Coupon InterestType Type CUSIP Dealer Date Date (if appl) Par Value Maturity Cost Current Month Gain / (Loss) Rate Earned

Agency FHLB 3133XWX95 WMS 03-29-11 03-13-15 No Call $500,000 1.880% 516,505.00 504,780.00 (11,725.00) 2.750% 798.36$ Agency FHLMC 3137EACA5 WMS 03-27-14 03-27-19 No Call $500,000 1.790% 546,650.00 544,875.00 (1,775.00) 3.750% 760.14$ Agency FHLMC 3137EADCO WMS 06-10-14 03-08-17 No Call $1,000,000 0.745% 1,006,919.00 1,005,980.00 (939.00) 1.000% 632.48$ Agency FNMA 3135GOZA4 WMS 03-27-14 02-19-19 No Call $500,000 1.800% 501,975.00 506,505.00 4,530.00 1.875% 764.38$ Agency FNMA 3136G1CS6 MS 03-08-13 02-14-18 02-14-14 $1,000,000 1.224% 1,000,000.00 1,000,850.00 850.00 1.750% 1,039.73$ Agency FNMA 3136G1GP8 MS 03-27-13 03-27-18 03-27-15 $1,000,000 1.000% 1,000,000.00 987,920.00 (12,080.00) 1.000% 849.32$ Agency USTN 912828NP1 WMS 01-26-11 07-31-15 No Call $500,000 1.786% 499,218.75 505,975.00 6,756.25 1.750% 758.51$

CD Discover 254671KV1 WMS 03-06-13 03-06-17 No Call $250,000 0.950% 250,000.00 250,557.44 557.44 0.950% 201.71$ CD GSB 38147JAU6 WMS 03-06-13 03-07-16 No Call $250,000 0.950% 250,000.00 250,745.60 745.60 0.750% 201.71$ CD AEC 02587DMM7 WMS 03-07-13 03-07-16 No Call $250,000 0.750% 250,000.00 250,000.00 - 0.750% 159.25$ CD BMW Bank 05568P2V8 TVI 03-08-13 03-08-17 No Call $248,000 0.850% 248,000.00 247,969.83 (30.17) 0.850% 179.04$ CD Key Bank 49306SRH1 WMS 03-13-13 03-13-15 No Call $250,000 0.450% 250,000.00 250,221.38 221.38 0.450% 95.55$ CD Ally Bank 02005QV75 WMS 04-17-13 04-18-16 No Call $250,000 0.650% 250,000.00 250,358.27 358.27 0.650% 138.01$ CD GE Capital 36163CKE9 WMS 01-31-14 01-31-17 No Call $248,000 1.000% 248,000.00 249,013.35 1,013.35 1.000% 210.63$ CD GE Cap Retail 36157PVU0 WMS 01-31-14 01-31-18 No Call $248,000 1.450% 248,000.00 249,748.35 1,748.35 1.450% 305.41$ CD National Bank of NY 634116CA3 WMS 06-18-14 06-18-18 No Call $248,000 1.300% 248,000.00 247,553.71 (446.29) 1.300% 273.82$ CD CIT Bank 17284A6P8 TVI 03-13-13 03-13-18 No Call $248,000 1.100% 250,000.00 246,676.41 (3,323.59) 1.100% 231.69$

Total Actively Invested Funds $7,490,000 7,563,267.75$ 7,549,729.34$ (13,538.41)$ 1.484% 7,599.74$

Total Local Agency Investment Fund $40,134,952.78 0.246% 8,385.46

Total CalTRUST Investment Fund $2,127,274.56 0.710% 1,282.78

Total Invested Cash $7,490,000 49,825,495.09$ 0.452% 17,267.97$

Key to Security Type: Key to Dealers:FHLB = Federal Home Loan Bank FCS = FinaCorp SecuritiesFHLMC = Federal Home Loan Mortgage Corporation MBS = Multi-Bank SecuritiesFNMA = Federal National Mortgage Association MS = Mutual SecuritiesCORP = Corporate Note RCB = RBC Dain RauscherCD = Certificate of Deposit SA = Securities AmericaGDB = Goldman Sachs Bank TVI = Time Value InvestmentsAEC = American Express Centurion WMS = Wedbush Morgan Securities

Santa Ana Watershed Project AuthorityINVESTMENT PORTFOLIO - MARKED TO MARKET - UNREALIZED GAINS & LOSSES

October 31, 2014SAWPA primarily maintains a "Buy and Hold" investment philosophy, with all investments held by the Citizens Business Bank via a third-party safekeeping contract.

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Oct-2014

0.0%

1.0%

2.0%

Securities LAIF CalTRUST Avg Rate ofReturn

1.484%

0.246%

0.710%0.452%

Interest Rate Analysis

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Oct-2014

Securities, $7,563,268,

15%

CalTRUST, $2,127,275,

4%

LAIF, $40,134,953,

81%

Investments$49,825,495

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Oct-2014

Securities, $7,600, 44%

CalTRUST, $1,283, 7%

LAIF, $8,385, 49%

Interest$17,268

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COMMISSION MEMORANDUM NO. 8948 DATE: November 18, 2014 TO: SAWPA Commission SUBJECT: FY 2013-14 Report on Audit

PREPARED BY: Karen Williams, Chief Financial Officer RECOMMENDATION It is recommended that the Commission review the Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended June 30, 2014, which includes the Report on Audit prepared by White Nelson Diehl Evans LLP: 1. Accept the CAFR, including the Report on Audit as prepared by White Nelson Diehl Evans;

2. Direct staff to file the Report with the respective government agencies as required by law; and, 3. Direct staff to submit the CAFR, with any necessary changes, for the Certificate of Achievement for

Excellence in Financial Reporting Award, and the Certificate of Award for Outstanding Financial Reporting.

DISCUSSION As required by the State of California Government Code, all government agencies and/or special districts must contract for an independent financial audit. In addition, because SAWPA has received State Water Board grant funding, the independent audit must include additional work and reporting by the auditors, and testing of SAWPA’s internal control procedures for receipt of grant funding to ensure compliance with respective State and Federal laws and regulations. SAWPA has received the Government Finance Officers Associations (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the last three years. SAWPA also has received the California Society of Municipal Finance Officers (CSMFO) Certificate of Award for Outstanding Financial Reporting for the FYE 2011, 2012, and 2013. Staff will submit this CAFR for both awards as well. The CAFR was prepared following the guidelines recommended by the Governmental Accounting Standards Board (GASB) and generally accepted accounting principles (GAAP). It includes three sections: 1. The Introductory Section, which provides an overview of the Agency, its background, organization,

recent activities and accomplishments over the past fiscal year, local and economic conditions and forecasts, service efforts and accomplishments, and future plans.

2. The Financial Section, which includes the independent auditor’s report, management’s discussion and

analysis, and all basic financial statements and notes to the basic financial statements.

3. The Statistical Section, which includes a number of unaudited tables and schedules that present historical trends for the past ten years, as well as demographic and other information about the Agency that is deemed relevant.

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CM#8948 November 18, 2014 Page 2 SAWPA is pleased to report that the financial statements presented herein, contain no qualifications or reportable conditions. This indicates that SAWPA’s financial reporting meets generally accepted GAAP, it is compliant with applicable State and Federal laws and regulations, and internal controls are sufficient to safeguard against material errors or fraud. Nitin Patel (Audit Partner) will be available to answer questions regarding SAWPA’s FY 2013-14 Report on Audit (financial statements). RESOURCE IMPACTS The FY 2013-14 Audit contains no financial deficiencies to report. Attachments: 1. FYE 2014 CAFR 2. Management Report 3. Internal Controls Letter CM 8948 Audit Rpt FY 13-14

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Comprehensive Annual Financial ReportFiscal Year Ended June 30, 2014

Santa Ana Watershed Project Authority

11615 Sterling Avenue ● Riverside ● California ● 92503www.sawpa.org ●(951)354‐4220

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Riverside, CA

Comprehensive Annual Financial Report

For the Fiscal Year Ended

June 30, 2014

Prepared by the

Finance Department

11615 Sterling Avenue, Riverside California 92503

951.354.4220 www.sawpa.org

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Table of Contents

INTRODUCTORY SECTION

Transmittal Letter ............................................................................................................................ i

Authority Service Area Map ......................................................................................................... x

Certificate of Achievement for Excellence in Financial Reporting .............................. xi

Authority Officials ........................................................................................................................ xii

Organizational Chart ................................................................................................................. xiii

FINANCIAL SECTION

Independent Auditor’s Report .................................................................................................... 1

Management’s Discussion and Analysis ................................................................................. 5

Basic Financial Statements:

Statements of Net Position – Proprietary Fund ........................................................ 19

Statements of Revenues, Expenses, and Changes in Net Position - Proprietary Fund ............................................................................................................................................ 20

Statements of Cash Flows – Proprietary Fund .......................................................... 21

Statements of Fiduciary Assets and Liabilities – Agency Funds ......................... 23

Notes to the Financial Statements ................................................................................. 24

Required Supplementary Information

Schedule of Funding Progress–Other Post-Employment Benefits Asset ......... 63

Supplemental Information

Combining Schedule of Nets Position – Enterprise Funds .................................... 66

Combining Schedule of Revenues, Expenses, and Changes in Net Position – Enterprise Funds ................................................................................................................... 68

Combining Schedule of Net Position – Capital Project Activities ....................... 70

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Combining Schedule of Revenues, Expenses, and Changes in Net Position – Capital Project Activities .................................................................................................... 74

Combining Schedule of Net Position – Enterprise Activities .............................. 78

Combining Schedule of Revenues, Expenses, and Changes in Net Position – Enterprise Activities ............................................................................................................ 79

Combining Schedule of Fiduciary Assets and Liabilities–Agency Funds ........ 80

Combining Schedule of Changes in Fiduciary Assets and Liabilities – Ageny Funds ......................................................................................................................................... 81

STATISTICAL SECTION

Table I – Net Position by Component ................................................................................... 83

Table II – Changes in Net Position ......................................................................................... 84

Table III – Revenues by Source .............................................................................................. 85

Table IV – Expenses by Function ........................................................................................... 86

Chart I – Combined Expenses and Revenues .................................................................... 87

Table V – Wastewater Discharge by Type .......................................................................... 88

Table VI – Summary of Wastewater Treatment Rates .................................................. 89

Table VII – Principal Sewer Customers ............................................................................... 90

Table VIII – Debt Coverage Ratio ........................................................................................... 91

Table IX – Debt Service Payment Schedule ........................................................................ 92

Chart II – Debt Service Payment Schedule ......................................................................... 93

Chart III – Capital Spending ..................................................................................................... 94

Chart IV – Total Debt to Assets ............................................................................................... 94

Table X – Demographic and Economic Statistics ............................................................. 95

Table XI – Principal Employers .............................................................................................. 95

Table XII – Number of Employees ......................................................................................... 96

Chart V – Total Employees ....................................................................................................... 96

Table XIII – Operating and Capital Indicators .................................................................. 97

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3 Document Name Your Company Name (C) Copyright (Print Date) All Rights Reserved

Introductory Section

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i

November18,2014

To the Chair of the Board of Commissioners, Members of the Commission, andMemberAgenciesoftheSantaAnaWatershedProjectAuthority:

WearepleasedtopresenttheSantaAnaWatershedProjectAuthority’s(hereinafterreferredtoas“theAuthority”)ComprehensiveAnnualFinancialReportfortheyearendedJune30,2014.

The report was prepared by the Authority’s Finance Department following theguidelinesrecommendedbytheGovernmentalAccountingStandardsBoard(GASB)and generally accepted accounting principles (GAAP). Responsibility for both theaccuracy of the data presented, and the completeness and fairness of thepresentation, including disclosures, rests with the Authority’s management. Webelieve the data, as presented, is accurate in all material respects, and that it ispresented in amanner that provides a fair representation of the financial positionand results of operation of the Authority. Included are all disclosures we believenecessarytoenhanceyourunderstandingofthefinancialconditionoftheAuthority.

GAAP requires that management provide a narrative introduction, overview, andanalysis to accompany the basic financial statements in the form ofManagement’sDiscussionandAnalysis(MD&A). Thelettertransmittal isdesignedtocomplementtheMD&Aandshouldbereadinconjunctionwithit. TheAuthority’sMD&AcanbefoundimmediatelyfollowingtheIndependentAuditors’Report.

TheAuthority’sfinancialstatementshavebeenauditedbyWhiteNelsonDiehlEvansLLP,afirmoflicensedcertifiedpublicaccountants.ThegoaloftheindependentauditistoprovidereasonableassurancethatthefinancialstatementsoftheAuthorityforthe fiscal year ended June 30, 2014, are free of material misstatement. Theindependent audit involved examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements; assessing the accountingprinciplesusedandsignificantestimatesmadebymanagement;andevaluating theoverallfinancialstatementpresentation.Theindependentauditorsconcluded,basedupon the audit, that there was a reasonable basis for rendering an unqualifiedopinion that theAuthority’s financial statements for the fiscal year ended June 30,2014, are fairly presented in conformity with GAAP. The independent auditors’reportispresentedasthefirstcomponentofthefinancialsectionofthisreport.

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Reporting Entity and Its Services Governmental Structure The Authority was first formed in 1968 as a planning agency, and reformed in 1972, with a mission to plan and build facilities to protect the water quality of the Santa Ana River Watershed (hereinafter referred to as “the Watershed”). The Authority is a Joint Powers Authority (JPA), comprised of the five largest water agencies in the Watershed: Eastern Municipal Water District (EMWD), Inland Empire Utilities Agency (IEUA), Orange County Water District (OCWD), San Bernardino Valley Municipal Water District (SBVMWD), and Western Municipal Water District (WMWD). Service Area The Watershed spans approximately 2,650 square miles, and covers San Bernardino, Riverside, and most of Orange Counties, as well as a small portion of Los Angeles County. It is home to over 6 million people. The Watershed, and the State as a whole, is facing many challenges in guaranteeing sufficient, high-quality water for the ever-growing population of the region. The Authority works with planners, scientists, water experts, design and construction engineers, and other government agencies to identify issues and develop innovative solutions to resolve many water-related problems. Vision The Authority’s vision is a sustainable Santa Ana River Watershed that provides clean and reliable water resources for a vibrant economy and high quality of life for all, while maintaining healthy ecosystems and open space opportunities.

A successful Authority provides value to its member agencies and to the Watershed as a whole by facilitating collaboration across boundaries to address common goals and tackle problems that are larger than any individual entity.

Mission The Authority strives to make the Santa Ana River Watershed sustainable through fact-based planning and informed decision-making; regional and multi-jurisdictional coordination; and the innovative development of policies, programs, and projects. Our mission is accomplished through a number of specific functions: Maintaining peace in the Watershed; Facilitating conflict resolution through collaborative processes; Preparing an integrated watershed-wide water management plan that provides a

unified vision for the Watershed; Operating the Inland Empire Brine Line to convey salt out of the Watershed and support

economic development; Developing water-related initiatives, particularly those that require the participation of

several entities; Identifying, pursuing, securing, and administering supplemental funds for the

Watershed; and Influencing legislation for the benefit of the Watershed.

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Our Values Our strategy and day-to-day operations are guided by values strongly held by our member agencies, management, and staff:

Leadership in the development and advancement of a vision and plan for a sustainable Watershed, and in the incorporation of new paradigms for water and watershed planning.

Collaboration and cooperation among member agencies and other stakeholders in the Watershed toward the formulation and implementation of solutions to watershed-wide, multi-jurisdictional problems.

Creativity in the pursuit of new approaches to watershed planning, the use of new technologies, and the enhancement of a new water ethic in the Watershed.

Fact-based decision-making to identify neutral and transparent solutions that maximize the benefit to the entire Watershed.

Respect for all voices and perspectives in the Watershed to develop sound solutions and maximize consensus building.

Transparency, integrity and professionalism to maintain the respect and trust of our partners, and to attract and retain talented and committed individuals to our organization.

The Authority uses a three-pronged approach to accomplish our mission with the services it offers, which are listed below. Inland Empire Brine Line The Authority’s enterprise includes ownership and operation of the Inland Empire Brine Line (Brine Line). The 73-mile long regional brine line is designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River Basin to the Pacific Ocean for disposal, after treatment. The Brine Line is currently used for: 1) the disposal of high Total Dissolved Solids (TDS) brine from brackish groundwater desalter operations and power plants within the region; 2) the disposal of industrial wastewater that is unacceptable for discharge into local wastewater treatment facilities, usually because of high concentrations of TDS from commercial and industrial facilities; and 3) the disposal of domestic or industrial wastewater that is managed by public agencies and which meets standards of local treatment facilities. Some users of the Brine Line have temporary or emergency needs and connect to the system for a fixed term. This 36-year old utility was built as the fundamental method of salt export for the region. Historic import of water for agricultural purposes has increased the salinity of many groundwater basins within the Watershed. Removing salt by means of the Brine Line allows the Watershed to work towards achieving salt balance – a key Watershed goal and indicator of sustainability. Salt is removed from brackish groundwater by reverse osmosis desalters, which discharge the concentrated brine into the Brine Line. The treated water from the desalters is delivered for consumption as potable water. Brine disposal will be essential to support water recycling efforts and economic growth within the Watershed.

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Integrated Regional Watershed Planning The Authority has been involved in integrated regional watershed planning since its formation. The latest plan adopted in February 2014 is the Santa Ana River Watershed Integrated Regional Water Management Plan (IRWMP) called the “One Water One Watershed (OWOW) 2.0 Plan”. Using a decentralized stakeholder involvement process as well as involving experts from all fields and areas within the Watershed, an extraordinarily collaborative and visionary plan was prepared to address water challenges over the next two decades. The plan addresses climate change; water supply reliability; water and land use; water quality improvement; flood control and stormwater runoff; water use efficiency; water recycling; parks, recreation, and open space; environmental justice; and environment and habitat. Through this integration of water resource categories or pillars, scarce resources will be leveraged and cost effective solutions have been identified to address a multiplicity of water challenges using an integrated multi-beneficial approach. Stakeholder Partnering (Roundtable Efforts) The Authority has taken the lead role in establishing effective regional partnerships with the Regional Water Quality Control Board and other stakeholders in the Watershed to solve water quality problems, as well as water and natural resource problems. The Authority serves as the administrator/facilitator and creates a neutral venue for a number of efforts bringing together many agencies and organizations to address and solve a multiplicity of problems through integration and innovation.

Economic Conditions and Outlook Local Economy While the Watershed, comprised of Orange, Riverside, and San Bernardino Counties, slowed in growth under the previous national financial crisis and recession, current projections from the California Department of Finance indicate that the watershed area is set for a rebound. Income levels have risen for the third consecutive year, unemployment rates continue to decrease, and the housing market continues to improve while still remaining affordable. Economic forecasters expect the economy to continue to improve and become stronger in the coming years due to the availability of land, the ideal location for commerce, a relatively strong manufacturing base, and affordable housing. Sound Financial Policies The Agency continues to manage funds to ensure financial stability and demonstrate responsible stewardship by sustaining reasonable rates for customers, containing costs through careful planning, preserving investments, safeguarding reserves, and active debt management. Financial Planning The Commission approves a biennial operating budget as a management tool. The budget is developed with input from the various departments within the organization and adopted prior to the start of each fiscal year. Monthly comparison reports of budget to actual are prepared, and quarterly budget-to-actual results by fund type are provided to and discussed with the Commission, along with financial position and other key performance information.

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Reserves Policy The Agency adopted a reserve policy, which states the purpose, source, and funding limits for each of its designated reserves. The reserves are essential for maintaining liquidity in the marketplace, which enables the Agency to access the lowest cost-of-capital borrowing opportunities. Investment Policy The Agency invests its funds in instruments permitted by California Government Code sections 53601 et seq., and in accordance with its a investment policy. The investment objectives of the Agency are to first preserve capital, followed by maintaining liquidity, and finally, maximizing the rate of return without compromising the first two objectives. Debt Administration The Agency actively manages its debt portfolio, seeking to minimize its total debt costs. This goal is met by the use of state revolving fund (SRF) loans to fund part of its capital projects. Reserves will also be used to fund capital projects.

Major Initiatives and Accomplishments Fiscal year 2013-14 was another busy year for the Authority. It not only administers the day-to-day operations of the JPA, it operates the Brine Line Enterprise and Capital Improvement Program, administers the OWOW Program, administers several grant programs, serves as the Lake Elsinore & San Jacinto Watersheds Authority administrator, conducts regional planning activities, and facilitates eight stakeholder task force work groups. Some of the major initiatives and accomplishments for FYE 2014 are listed below. Brine Line Enterprise Developed design documents (plans and specifications) for installation of Cured In Place

Pipe (CIPP) for portions of Reach V as recommended by an expert panel. CIPP was selected after completion of an investigation into the causes of a spontaneous failure of a 24-inch diameter Polyvinyl Chloride (PVC) Pipe. Investigation included test pits to determine the in-situ soil condition and deformation of the PVC pipe.

Created a new Pretreatment Program (PTP) including the establishment of two new SAWPA staff positions and purchase of software to automate portions of the PTP.

Prepared and adopted new PTP documents: Ordinance, Policy Manual, Procedures, Enforcement Response Plan.

Utilized a data and records management system (OnBase) for expedient notification of Brine Line Liquid Waste Hauler rejected loads.

Installed additional access points to Reach IV-B Upper to facilitate line cleaning. Used access points to clean a portion of the Buchanon Siphon which was approximately 50% plugged with scale.

Continued quarterly siphon cleaning program for 13 system inverted siphons. Monitored facilities during winter storm events and performed minor repairs from

erosion.

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Continued to locate facilities, particularly on Reach V, by “potholing” and updating “as-built” information.

Conducted recurring maintenance of air release valves to reduce incidence of “dripping” or small releases of any brine from the valves.

Continued implementation of a Brine Line marketing plan. Completed repair of selected Maintenance Access Structures (MAS). Lined several

structures which were unlined concrete to prevent further concrete deterioration. Monitored US Army Corps of Engineers relocation of approximately 400 feet of Reach

IV-A Upper pipe near the Yorba Slaughter Adobe. Monitored Orange County Public Works relocation of the Santa Ana Regional Interceptor

(SARI) in Orange County. This 4 mile section will transport 100% SAWPA flows and includes a new metering station.

Responded to over 4,000 requests from contractors to mark the location of the Brine Line in the field. Requires direct coordination with the contractor to review the proposed work and any potential concerns for the Brine Line.

Monitored construction activities in close proximately or crossing the Brine Line to ensure protection of the Brine Line.

Created a third operations staff position to increase the number of activities that can be self- performed by SAWPA staff, reducing dependence on and cost of contractors.

OWOW Conducted a successful sixth annual OWOW Conference in Riverside, CA with over 350

people in attendance. Worked with stakeholders in the development of a successful 2014 California (CA)

Department of Water Resources (DWR) Proposition 84 Drought grant application for $11.8 million as part of a $20.8 million project to support water use efficiency goals throughout the watershed.

Conducted stakeholder workshops to discuss the need for system-wide regional water resource projects that meet the OWOW Plan Goals. Worked with proponents to prepare projects for future submittals under the CA DWR 2015 Proposition 84 Integrated Regional Water Resources Management (IRWM) funding program, $63.8 million in grant funding tentatively scheduled for late 2015.

Completed and adopted the OWOW Plan update, OWOW 2.0, on February 4, 2014. Completed a successful partnership with the United States Bureau of Reclamation

(USBR) that provided $1 million in federal funding to support the OWOW 2.0 Plan. The partnership focused on OWOW 2.0 tasks that address climate change adaptation, mitigation and disadvantaged communities, tribal community critical water supply, and water quality support.

Completed and fully expended the $1 million planning grant from the CA DWR to work on the OWOW 2.0 Plan.

Stakeholder Partnering (Roundtable Efforts) Continued work with the US Forest Service on collaborative water resource efforts for

determining beneficial forest management activities on water resources and to recommend implementation projects.

Supported the stakeholders of the Middle Santa Ana River Pathogen TMDL Task Force in the continued implementation of a comprehensive bacteria reduction plan.

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Submitted the final watershed-wide emerging constituent’s program annual sampling report for the Regional Board and submitted it to them in April 2014 reflecting no major health concerns resulting from emerging constituents in drinking water sources as deemed by the Regional Board.

Updated the Santa Ana River Wasteload Allocation Plan to reflect revisions to the Seven Oaks Dam recharge projections and initiated study of increased salt levels in the Santa Ana River flows, Reach 3, during August sampling period.

Continued a joint salinity management study update through our involvement with Southern California Salinity Coalition, Metropolitan Water District of Southern California (MWDSC), and USBR.

Completed another habitat survey for the threatened fish species, Santa Ana sucker fish, as well as the annual Riverwalk, the longest running and largest voluntary annual habitat assessment conducted in Southern California for an aquatic species.

Supported the Lake Elsinore and San Jacinto Watersheds Authority and the associated TMDL Task Force in implementing three successful alum applications to Canyon Lake to reduce the phosphorus content, reduce algae and help meet the TMDL targets for the lake.

Technology Installed and configured Overhead projector and computer support in OWOW

conference room Implemented and support IPACS Brine line permit application. Migrated Liberty documents to the new electronic document system OnBase. Deployed 4 new PCs at SAWPA. Update Security fixes for Flash in the Dig Alert application. Upgraded website for SAWPA with user friendly tools to update. Implemented recommendations from the Feasibility Analysis on Going Paperless in

Accounting. Began implementation of ACH payments. Created a OWOW regional project map series. Created GIS Easement Document application. Started multi-application transition from Flash to Java Script due to ESRI support.

Accounting System The Finance Department is responsible for providing financial services for the Authority, including financial accounting and reporting, payroll, accounts payable and receivable, custody and investment of funds, billing and collection of wastewater charges, and other revenues. The Authority accounts for its activities as an enterprise fund and prepares its financial statements on the accrual basis of accounting, under which revenues are recognized when earned and expenses are recorded when incurred. It is the intent of the Board of Commissioners to manage the Authority’s operations as a business, thus matching revenues against the cost of providing services.

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Internal Controls The Authority operates within a system of internal accounting controls established and continually reviewed by management to provide reasonable assurance that assets are adequately safeguarded and transactions are recorded in accordance with Authority policies and procedures. When establishing and reviewing controls, management must consider the cost of the control and the value of the benefit derived from its utilization. Management normally maintains or implements only those controls for which its value adequately exceeds its cost. Recent audits have not noted any weaknesses in internal controls.

Audit and Financial Reporting

State Law requires the Agency to obtain an annual audit of its financial statements by an independent certified public accountant. The accounting firm of White Nelson Diehl Evans LLP has conducted the audit of the Authority’s financial statements. Their unqualified (clean) Independent Auditor’s Report appears in the Financial Section.

Awards The Government Finance Officers Association of the United States and Canada (“GFOA”) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Authority for its comprehensive annual financial report for the fiscal year ended June 30, 2013. This was the fourth year that the Authority has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of only one year. We believe that our current comprehensive annual financial report continues to meet the programs requirements and will submit our current June 30, 2014, report to the GFOA to determine its eligibility for a certificate. The GFOA of the United States and Canada presented a Distinguished Budget Presentation Award to the Authority for the two-year Budget beginning July 1, 2013. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operating guide, as a financial plan, and as a communication device.

Acknowledgements The preparation of this report could not have been accomplished without the efficient and dedicated services of the entire staff of the Authority’s Finance Department. We also would

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like to express our appreciation to the other Authority Departments for their cooperation, assistance, and support. We further acknowledge the thorough and professional manner in which our auditors, White Nelson Diehl Evans LLP, conducted the audit. Additionally, we would like to acknowledge the Board of Commissioners for their continued support of the Authority’s goal of sound accountable financial management, and for maintaining the highest standards of professionalism in the management of the Authority’s finances. We truly appreciate their unfailing interest and support. Respectfully submitted, Celeste Cantú General Manager Karen Williams Chief Financial Officer

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Santa Ana Watershed Project Authority Authority Service Area Map

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Santa Ana Watershed Project Authority Authority Officials

Board of Commissioners

Philip Anthony Chair OCWD Don Galleano Vice Chair WMWD Ron Sullivan Secretary/Treasurer EMWD

Mark Bulot Commission Member SBVMWD Terry Catlin Commission Member IEUA

Management Staff

Celeste Cantú General Manager Kelly Berry Administrative Services Manager/Clerk of the Board

Karen Williams Chief Financial Officer Dean Unger IS and Technology Manager

Richard Haller Executive Manager of Engineering and Operations Mark Norton Water Resources and Planning Manager

Larry McKenney Executive Counsel

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Santa Ana Watershed Project Authority Organizational Chart

Commission

General Manager

Public Affairs

General Counsel

Administrative

Services

Information Services &

Technology

Finance/

Accounting

Engineering &

Operations

Water Resources &

Planning

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Financial Section

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2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893

Offices located in Orange and San Diego Counties

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INDEPENDENT AUDITORS’ REPORT

Board of CommissionersSanta Ana Watershed Project AuthorityRiverside, California

Report on the Financial Statements

We have audited the accompanying financial statements of the Santa Ana Watershed Project Authority (the Authority) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the State Controller’s Minimum Audit Requirements for California Special Districts. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Santa Ana Watershed Project Authority as of June 30, 2014 and therespective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America, as well as the accounting systems prescribed by the State Controller’s Office and State Regulations governing Special Districts.

OTHER MATTERS:

Prior-Year Comparative Information

We have previously audited the Authority’s 2013 financial statements, and we expressed an unmodified audit opinion on the respective financial statements of the Authority in our report dated November 6, 2013. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2013, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and schedule of funding progress - other post-employment benefits asset, as identified in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during the audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority’s financial statements. The introductory section, combining schedules and statements, and statistical section for the year ended June 30, 2014 are presented for purposes of additional analysis and are not a required part of the financial statements.

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OTHER MATTERS (CONTINUED):

Other Information (Continued)

The combining schedules and statements for the year ended June 30, 2014 are the responsibility of management and were derived from and relate directly to the underlying accounting andother records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining schedules and statements are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections for the year ended June 30, 2014 have not beensubjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report datedOctober 10, 2014, on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Irvine, CaliforniaOctober 10, 2014

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Management’sDiscussionandAnalysis

The intent of the Management Discussion and Analysis is to provide highlights of the financial activities for the fiscal year ended June 30, 2014 of the Santa Ana Watershed Project Authority (the “Authority”). Readers are encouraged to read this section in conjunction with the transmittal letter and the accompanying basic financial statements.

TheAuthority

The Santa Ana Watershed Project Authority was formed in 1972 pursuant to the provisions of Article 1, Chapter 5, Division 7, Title 1 of the Government Code of the State of California relating to the joint exercise powers common to public agencies. The Authority was formed for the purpose of undertaking projects for water quality control and protection and pollution abatement in the Santa Ana River Watershed. The Authority’s five member agencies are Orange County Water District (OCWD), Inland Empire Utilities Agency (IEUA), Western Municipal Water District (WMWD), San Bernardino Valley Municipal Water District (SBVMWD), and Eastern Municipal Water District (EMWD).

OverviewoftheFinancialStatements The Authority is a special purpose government (special district) engaged only in activities that support themselves through user charges and member contributions. Accordingly, the accompanying financial statements are presented in the format prescribed for proprietary funds by the Governmental Accounting Standards Board (GASB). These financial statements consist of three interrelated statements designed to provide the reader with relevant, understandable data about the Authority’s financial condition and operating results. They are the (1) Statement of Net Position; (2) Statement of Revenues, Expenses and Changes in Net Position; and (3) Statement of Cash Flows. The statement of net position presents information on all the Authority’s assets, deferred inflow of resources, liabilities, and deferred outflow of resources, with the differences between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. The statement of revenues, expenses, and changes in net position presents information showing how the Authority’s net position changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flow in future fiscal periods. The statement of cash flows conveys to financial statement users how the Authority managed cash resources during the year. This statement converts the change in net

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position presented on the statement of revenues, expenses and changes in net position into actual cash provided by and used for operations. The statement of cash flows also details how the Authority obtains cash through financing and investing activities, and how cash is spent for these purposes.

SummaryFinancialInformationandAnalysis The Authority’s financial operations remained sound during the fiscal year 2014. The statement of net position remains strong, providing a foundation for continued growth within the Authority’s service area. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Authority, assets exceeded liabilities by $66.6 million at June 30, 2014 and $67.7 million at June 30, 2013.

StatementofNetPosition

2014 2013 2012

Assets

Current Assets $ 60,521,971 $ 62,367,273 $ 65,160,061

Non‐currentAssets 9,659,692 11,895,216 13,408,408

Capital Assets 107,320,883 111,349,053 113,807,286

TotalAssets 177,502,546 185,611,542 192,375,755

Liabilities

Current Liabilities 5,185,605 6,065,910 8,568,678

Non‐currentLiabilities 105,720,973 111,885,188 116,747,913

TotalLiabilities 110,906,578 117,951,098 125,316,591

NetPosition

Net Investment in Capital Assets 80,456,568 81,274,020 80,560,654

Restricted 4,167,861 4,232,102 4,263,626

Unrestricted (Deficit) (18,028,461) (17,845,678) (17,765,116)

TotalNetPosition $66,595,968 $67,660,444 $67,059,164

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The following denotes explanations on some of the changes between fiscal years 2014 and 2013, as compared in the table above.

The $1.8 million decrease in Current Assets is due primarily to a decrease in accounts receivable. The Proposition 50 Grant for both Administration and Projects were completed this year and all retention funds were released.

The $2.2 million decrease in Non‐current Assets is due primarily to a

decrease in installment notes from scheduled notes receivable receipts and total payments of $1.7 million were received for funds loaned to Orange County Flood Control District (OCFCD) for the relocation of the Santa Ana Regional Interceptor (SARI) located in Orange County.

The $4.0 million decrease in Capital Assets is due primarily to an

offset of depreciation and amortization to property, plant, and equipment.

The $0.88 million decrease in Current Liabilities is due primarily to a

decrease in accounts payable. Retention funds from the Proposition 50 Grant were received from the State and paid to Agencies.

The $6.2 million decrease in Non‐current Liabilities is due primarily

to the amortization of pipeline and wastewater treatment rights combined with the decrease in long‐termdebt from scheduled debt service payments.

The following denotes explanations on some of the changes between fiscal years 2013 and 2012, as compared in the table above.

The $2.8 million decrease in Current Assets is due primarily to a decrease in accounts receivable. In 2012, there was over $2.4 million in SRF Loan and Grants receivable for the Brine Line Repairs project. This project was completed in FYE 2012.

The $1.5 million decrease in Non‐current Assets is due primarily to a

decrease in installment notes from scheduled notes receivable receipts and the return of a portion of the funds loaned to Orange County Flood Control District (OCFCD) for the relocation of the Santa Ana Regional Interceptor (SARI) located in Orange County.

The $2.5 million decrease in Capital Assets is due primarily to an

offset of depreciation and amortization to property, plant, and equipment.

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The $2.5 million decrease in Current Liabilities is due primarily to a decrease in accounts payable. In 2012, there was over $2.6 million in construction invoices due for the Brine Line Repairs project. This project was completed in FYE 2012.

The $4.9 million decrease in Non‐current Liabilities is due primarily

to the amortization of pipeline and wastewater treatment rights combined with the decrease in long‐termdebt from scheduled debt service payments.

CategoryofNetPositionThe Authority is required to present its net assets in three categories: (1) Net Investment in Capital Assets; (2) Restricted; and (3) Unrestricted. Net Investment in Capital Assets At June 30, 2014, Net Investment in Capital Assets consisted of the following:

NetInvestmentinCapitalAssets(In Millions)

2014 2013 2012

Property, Plant & Equipment $131.3 $130.6 $110.4

Accumulated Depreciation (57.1) (53.9) (50.8)

Wastewater Treatment & Disposal Rights 55.6 55.6 55.6

Accumulated Amortization (22.5) (21.1) (19.7)

Construction in Process 0.7 0.2 18.3

Related Payables and Loans, Net of Discounts (27.5) (30.1) (33.2)

Total $80.5 $81.3 $80.6 Restricted At June 30, 2014, Restricted Net Position of $4.2 million is legally restricted by contract to fund additional Arundo Management and Habitat Restoration projects within the Santa Ana River Watershed and by the SWRCB for a SRF loan reserve requirement.

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Unrestricted At June 30, 2014, the Authority had an unrestricted net deficit of $18.0 million. However, the Authority does possess $80.2 million in unearned revenues being realized over a 50 year period of approximately $2.5 million per year. Change in Net Position Overall, the fiscal year ending June 30, 2014, brought a decrease in net position of $1.0 million, a $1.6 million decrease from the previous year. The primary reason for this decrease over the prior year was due to a decrease of $1.2 million in total revenues and a increase of $0.5 million in total expenses.

ChangeinNetPosition

(inmillions)

‐5

0

5

10

15

20

2014 2013 2012

AllRevenues

AllExpenses

ChangeInNetPosition

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StatementofRevenues,Expenses,andChangesinNetPosition

2014 2013 2012 %of %of %of Amount Total Amount Total Amount Total

OperatingRevenues: WWT & Disposal $ 8,575,085 59.8% $ 9,170,287 59.1% $ 10,053,123 55.7%WWT & Disposal Capacity Rights 2,510,154 17.5% 2,510,154 16.2% 2,481,109 13.7%Other Operating Revenues 158,191 1.0% 220,420 1.4% 205,257 1.1%TotalOperatingRevenues 11,243,430 78.5% 11,900,861 76.7% 12,739,489 70.5%

Non‐OperatingRevenues: Member Contributions 1,771,587 12.4% 1,829,845 11.8% 1,697,194 9.4%Intergovernmental 843,283 5.9% 1,432,832 9.2% 2,563,956 14.2%Investment Income 457,867 3.2% 343,591 2.2% 1,058,984 5.9%Gain on Disposal of Asset 13,021 0.1% ‐ 0.0% 2,223 0.0%OtherNon‐Operating Income ‐ 0.0% ‐ 0.0% ‐ 0.0%TotalNon‐OperatingRevenues 3,085,758 21.5% 3,606,268 23.3% 5,322,357 29.5%TotalRevenues 14,329,188 100.0% 15,507,129 100.0% 18,061,846 100.0%

OperatingExpenses:

WWT and Disposal 6,864,435 44.6% 6,686,530 44.9% 7,356,155 43.8%General and Admin and Overhead 487,308 3.2% 588,883 4.0% 1,125,143 6.7%Studies and Planning Costs 2,636,556 17.1% 2,501,681 16.8% 2,244,658 13.4%Depreciation 3,137,858 20.4% 3,134,661 21.0% 2,732,655 16.3%Amortization of WWT and Disposal Rights 1,400,918 9.1% 1,400,918 9.4% 1,400,918 8.3%

TotalOperatingExpenses 14,527,075 94.4% 14,312,673 96.0% 14,859,529 88.5%Non‐OperatingExpenses:

Interest Expense 866,411 5.6% 558,421 3.7% 678,080 4.0%Loss on Disposal of Asset ‐ 0.0% ‐ 0.0% ‐ 0.0%Grant Program Expenses ‐ 0.0% 23,470 0.2% 1,222,182 7.3%OtherNon‐Operating Expenses 178 0.0% 11,285 0.1% 27,427 0.2%TotalNon‐OperatingExpenses 866,589 5.6% 593,176 4.0% 1,927,689 11.5%TotalExpenses 15,393,664 100.0% 14,905,849 100.0% 16,787,218 100.0%

Change in Net Positions (1,064,476) ‐1.6% 601,280 0.9% 1,274,628 1.9%Beginning Net Position 67,660,444 101.6 67,059,164 99.1% 65,784,536 98.1%

EndingNetPosition $66,595,968 100.0% $67,660,444 100.0% $67,059,164 100.0%

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Revenues Combined revenues for the fiscal year 2014 totaled $14.3 million, a decrease of $1.2 million, or 7.6%, less than the prior fiscal year. The following denotes explanations on some of the changes between fiscal years 2014 and 2013.

The $0.6 million decrease in Waste Water Treatment and Disposal is due to a decrease of biochemical oxygen demand (BOD) and total suspended solids (TSS) concentrations from the prior year. BOD and TSS concentrations have continually decreased each year due to the aggressive pipeline cleaning program and pre‐treatment of waste streams prior to discharge into the pipeline.

The $0.6 million decrease in Intergovernmental is due to the

completion of the SWRCB Proposition 50 projects.Combined revenues for the fiscal year 2013 totaled $15.5 million, a decrease of $2.6 million, or 14%, less than the prior fiscal year. The following denotes explanations on some of the changes between fiscal years 2013 and 2012.

The $0.8 million decrease in Waste Water Treatment and Disposal is due to a decrease of biochemical oxygen demand (BOD) and total suspended solids (TSS) concentrations from the prior year. BOD and TSS concentrations have continually decreased each year due to the aggressive pipeline cleaning program and pre‐treatment of waste streams prior to discharge into the pipeline.

The $1.1 million decrease in Intergovernmental is due to the

completion of the SWRCB Proposition 13 project and the Reach IV‐Aand IV‐B repair projects being completed in FYE 2012. At June 30, 2012, there were over $1.5 million in revenues from these two grants.

The $0.7 million decrease in Investment Income is due to three of the

installment notes having been paid off in FYE 2012. Notes receivable receipts will be reduced by over $0.9 million each year with the scheduled repayment of these notes.

Expenses Combined expenses for the fiscal year 2014 totaled $15.4 million, an increase of $.5million,or 0.3% more than the prior fiscal year. The following denotes explanations on some of the changes between fiscal years 2014 and 2013.

The $0.3 million increase in Interest Expense is due to the SWRCB not capitalizing a portion of the Reach IV‐A and IV‐B SRF Loan interest

1149


that staff had capitalized. That portion of the interest was re‐classed as interest expense.

Combined expenses for the fiscal year 2013 totaled $14.9 million, an increase of $1.9 million, or 11.2% less than the prior fiscal year. The following denotes explanations on some of the changes between fiscal years 2013 and 2012.

The $1.2 million decrease in Grant Program Expenses is due to Studies and Planning Costs is due to a decrease in activity in the Basin Monitoring Program Task Force, the Santa Ana River Fish Conservation Program, the Chino TMDL Task Force, the Stormwater Quality Standards Task Force, the Arundo Management and Habitat Restoration program, the Trail Marketing Support, and the Big Bear TMDL Task Force. Each of these projects have scaled back much of their coordinated study and monitoring activity to transition into project implementation.

The $0.7 million decrease in Waste Water Treatment and Disposal is

due to a decrease of biochemical oxygen demand (BOD) and total suspended solids (TSS) concentrations from the prior year. BOD and TSS concentrations have continually decreased each year due to the aggressive pipeline cleaning program and pre‐treatment of waste streams prior to discharge into the pipeline.

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CapitalAssets Existing Capital Assets The following chart is the composition of the Authority’s total capital assets, not including depreciation and amortization, considered utility plant, as of June 30, 2014; additional information can be found in Note 6 of the Notes to Financial Statements.

Capital asset additions (related to the Reach IV‐A and IV‐B repair project) make up the $0.5 million increase in Capital Assets over fiscal year 2013. A comparison of the changes by major category between the current and prior fiscal years is provided in the Category of Net Position section on page 8 of this report. Future Capital Improvements The capital improvements program (CIP) includes annual capital repairs to correct pipeline and maintenance access structure (MAS, formerly known as manhole) defects identified during CCTV and direct visual inspection. The defects include items such as sealing joints with major groundwater infiltration, and repairing MAS and pipe corrosion protection (plastic"T‐Lok" type liner) and completing repairs where structure corrosion has occurred.

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A catastrophic failure and brine spill along Reach V caused SAWPA to investigate thein‐situcondition of the pipe installed in 1999. Data collected indicates that the PVC pipe is deformed beyond the recommended amount (5% deflection) at a number of locations. During FYE 2013, test pits were excavated along the five miles of pipe in question and additional areas of deflection greater than 5% were found. A panel of three pipeline experts was convened and recommended repair by installation of cured‐in‐placepipe to strengthen the pipe. Based upon this recommendation, a project was developed and a detailed design prepared. In FYE 2015, bid documents will be completed and a Notice Inviting Bids issued. A State Revolving Fund (SRF) loan will fund part of the project. The loan will be repaid through discharger fees. The project is expected to take 15 months to complete. A four mile stretch of the pipeline, termed the Santa Ana River Interceptor within Orange County has been relocated outside the floodplain by the County of Orange Flood Control District. Relocation to the south side of the Santa Ana River protects the pipeline from Prado Dam water releases. In fiscal year 2012, the Authority loaned $10 million to the County of Orange and the OCSD loaned up to $70 million, to facilitate earlier completion of the relocation project. Project design was completed in fiscal year 2011 and the project was bid and awarded in fiscal year 2012. Construction completion was expected by fall 2013 but was delayed until spring 2014. Flows were diverted to the new line May 7, 2014. As of June 2014, $3.2 million of the $10 million loaned by SAWPA to the County of Orange has been repaid.

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Long‐TermDebtThe Authority’s long‐termdebt consists of five loans from the SWRCB for construction of the Brine Line, four loans from the SWRCB for construction of Reach V of the Brine Line, a new loan from the SWRCB for repairs of Reach IV‐A and IV‐B, loan from a member agency for the repurchase of wastewater capacity and treatment/disposal rights, and a contractual obligation due to a related joint powers authority. During the fiscal years ended June 30, 2012‐2014, the Authority made all of its scheduled principal payments on these debts as follows:

DebtService 2014 2013 2012

SWRCB Brine Line $1,411,789 $2,343,767 $2,276,536

SWRCB TVRI Line 892,039 868,669 845,912

SWRCB Reach IVA & IVB 640,679 ‐ ‐

OCWD Repurchase of Wastewater Rights 266,211 251,142 236,927

WRCRWA* Contractual Obligation 465,069 452,403 440,078

*West Riverside County Regional Wastewater Authority These payments decreased the outstanding balance in long‐termdebt by $3.7 million. For more detailed information refer to Note 8 of the Notes to Financial Statements.

FiscalYear2014‐2015Budget Economic and Financial Factors The economy in the Authority’s service area is starting to look brighter. Modest but steady increases in job numbers and positive development in the sectors of healthcare and logistics have helped the Inland Empire. Consumer spending has also continued to increase steadily. The Authority has continued to seek ways to increase efficiency and reduce our budget by optimizing operational processes and implementation of a number of cost cutting measures throughout operations. Since 2010, 5 positions have been added in Brine Line Operations. These positions have been added to bring functions previously provided for by consultants in house, which greatly increase the efficiency and effectiveness of our operations. Through these efforts, we have been able to reduce costs and pass those savings on to our member agencies through reduced fees and member contributions.

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The Authority is faced with a $60 million Capital Improvement Program over the next 25 years. To ensure that there will be funds available to implement the program, the Authority conducted a long‐term financial plan and rate model for the Brine Line. This model has served as a financial planning tool to ensure sufficient revenues are collected for operating needs, capital needs, and the funding of a long‐term capital repair and replacement reserve. We will look at the model and how we can best update it to serve future operations in FYE 2015. Management is unaware of any other conditions that could have a significant past, present, or future impact on the Authority’s current financial position, net position, or operating results. Contacting the Authority’s Financial Management This financial report is designed to provide a general overview of the Authority’s finances for the Board of Commissioners, customers, investors, creditors, and other interest parties. Questions concerning any information provided in the report or requests for additional information should be addressed to the Authority’s Finance Department, 11615 Sterling Avenue, Riverside, CA 92503.

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ASSETS: 2014 2013CURRENT ASSETS:

Cash and cash equivalents (Note 2) 37,947,998$ 37,486,042$ Cash and cash equivalents - restricted (Note 2) 1,245,565 1,135,039 Investments (Note 2) 16,394,301 16,428,710 Interest receivable 280,708 315,685 Accounts receivable 1,602,625 1,676,868 Accounts receivable - grants 212,569 1,337,292 Accounts receivable - other 14,253 1,012,245 Notes receivable - current portion (Note 3) 606,627 639,819 Prepaid expenses and other assets 286,765 289,013 Mitigation credits (Note 5) 1,930,560 2,046,560

TOTAL CURRENT ASSETS 60,521,971 62,367,273

NONCURRENT ASSETS:Notes receivable (Note 3) 2,545,790 3,084,888 Loan receivable (Note 4) 6,761,672 8,527,858 Other post-employment benefit (OPEB) asset (Note 13) 352,230 282,470 Capital assets (Note 6):

Not being depreciated 1,443,319 977,213 Being depreciated, net of accumulated depreciation 105,877,564 110,371,840

TOTAL NONCURRENT ASSETS 116,980,575 123,244,269

TOTAL ASSETS 177,502,546 185,611,542

LIABILITIES:CURRENT LIABILITIES:

Accounts payable 935,973 1,808,376 Accrued salaries and wages 77,902 73,758 Accrued interest payable 409,234 445,534 Long-term liabilities - due within one year:

Compensated absences (Note 7) 112,624 98,830 Loans payable (Note 8) 3,649,872 3,639,412

TOTAL CURRENT LIABILITIES 5,185,605 6,065,910

NONCURRENT LIABILITIES:Unearned revenue (Note 9) 80,249,749 82,759,903 Long-term liabilities - due in more than one year:

Compensated absences (Note 7) 262,788 230,602 Loans payable (Note 8) 25,208,436 28,894,683

TOTAL NONCURRENT LIABILITIES 105,720,973 111,885,188

TOTAL LIABILITIES 110,906,578 117,951,098

NET POSITION (AS RESTATED - NOTE 16):Net investment in capital assets 80,456,568 81,274,020 Restricted for:

SRF Reach IVA & IVB reserve requirement 1,050,000 1,050,000 Mitigation 3,117,861 3,182,102

Unrestricted (18,028,461) (17,845,678)

TOTAL NET POSITION 66,595,968$ 67,660,444$

See independent auditors' report and notes to the basic financial statements

19

Business-Type Activities

SANTA ANA WATERSHED PROJECT AUTHORITY

STATEMENTS OF NET POSITION

PROPRIETARY FUND

(With comparative totals for June 30, 2013)

Enterprise Fund

June 30, 2014

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2014 2013OPERATING REVENUES:

Wastewater treatment and disposal 8,575,085$ 9,170,287$

Wastewater treatment and disposal - capacity rights 2,510,154 2,510,154

Other 158,191 220,420

TOTAL OPERATING REVENUES 11,243,430 11,900,861

OPERATING EXPENSES:

Wastewater treatment and disposal 6,864,435 6,686,530

General and administrative and overhead 487,308 588,883

Studies and planning costs 2,636,556 2,501,681

TOTAL OPERATING EXPENSES 9,988,299 9,777,094

OPERATING INCOME BEFORE

DEPRECIATION AND AMORTIZATION 1,255,131 2,123,767

DEPRECIATION (3,137,858) (3,134,661)

AMORTIZATION (1,400,918) (1,400,918)

OPERATING LOSS (3,283,645) (2,411,812)

NONOPERATING REVENUES (EXPENSES):

Member contributions 1,771,587 1,829,845

Intergovernmental 843,283 1,432,832

Investment earnings 457,867 343,591

Gain on sale of mitigation credits 13,021 -

Interest expense (866,411) (558,421)

Grant program expenses - (23,470)

Other (178) (11,285)

TOTAL NONOPERATING REVENUES (EXPENSES) 2,219,169 3,013,092

CHANGES IN NET POSITION (1,064,476) 601,280

NET POSITION - BEGINNING OF YEAR (AS RESTATED - NOTE 16) 67,660,444 67,059,164

NET POSITION - END OF YEAR 66,595,968$ 67,660,444$

See independent auditors' report and notes to the basic financial statements.

20


STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUND


(With comparative totals for the fiscal year ended June 30, 2013)

Enterprise Fund

For the fiscal year ended June 30, 2014

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2014 2013CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 11,145,995$ 12,284,262$

Cash received from sale of mitigation credits 129,021 -

Cash paid to employees (2,574,583) (2,802,222)

Cash paid to suppliers (8,303,507) (9,387,553)

NET CASH PROVIDED

BY OPERATING ACTIVITIES 396,926 94,487

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES:

Member contributions 1,771,587 1,831,365

Other governments 2,965,998 1,597,564

Grant program expenses (178) (34,755)

NET CASH PROVIDED BY NONCAPITAL

AND RELATED FINANCING ACTIVITIES 4,737,407 3,394,174

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (510,606) (2,077,346)

Proceeds from acquisition of long-term debt - 1,363,039

Principal payments on long-term debt (3,675,787) (3,915,981)

Interest paid on long-term debt (902,711) (135,163)

NET CASH USED BY CAPITAL AND

RELATED FINANCING ACTIVITIES (5,089,104) (4,765,451)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of investments (2,348,761) (2,673,829)

Proceeds from sale of investments 2,383,170 1,493,099

Interest received 492,844 364,325

NET CASH PROVIDED (USED) BY

INVESTING ACTIVITIES 527,253 (816,405)

NET INCREASE (DECREASE) IN

CASH AND CASH EQUIVALENTS 572,482 (2,093,195)

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 38,621,081 40,714,276

CASH AND CASH EQUIVALENTS - END OF YEAR 39,193,563$ 38,621,081$

RECONCLIATION OF CASH AND CASH EQUIVALENTS TO THE

STATEMENTS OF NET POSITION:

Cash and cash equivalents 37,947,998$ 37,486,042$

Cash and cash equivalents - restricted 1,245,565 1,135,039 TOTAL CASH AND CASH EQUIVALENTS 39,193,563$ 38,621,081$

See independent auditors' report and notes to the basic financial statements. (Continued)


STATEMENTS OF CASH FLOWS

PROPRIETARY FUND


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Enterprise Fund

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2014 2013RECONCILIATION OF OPERATING LOSS TO

NET CASH PROVIDED BY OPERATING ACTIVITIES:

Operating loss (3,283,645)$ (2,411,812)$

Adjustments:Amortization 1,400,918 1,400,918

Depreciation 3,137,858 3,134,661

Gain on sale of mitigation credits 13,021 -

Change in assets and liabilities:

(Increase) decrease in accounts receivable 74,243 33,994

(Increase) decrease in prepaid expenses and other assets 2,248 (29,180)

(Increase) decrease in mitigation credits 116,000 -

(Increase) decrease in notes receivable 572,290 965,303

(Increase) decrease in loan receivable 1,766,186 916,414

(Increase) decrease in other post-employment benefit (OPEB) asset (69,760) (43,041)

Increase (decrease) in accounts payable (872,403) (2,054,476)

Increase (decrease) in accrued salaries and wages 4,144 11,133

Increase (decrease) in compensated absences 45,980 24,307

Increase (decrease) in unearned revenue (2,510,154) (1,532,310)

Increase (decrease) in pension-related liability - (321,424)

NET CASH PROVIDED BY OPERATING ACTIVITIES 396,926$ 94,487$



STATEMENTS OF CASH FLOWS

PROPRIETARY FUND

(CONTINUED)


22


Enterprise Fund


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2014 2013

CURRENT ASSETS:

Cash and cash equivalents 443,243$ 442,137$

Accounts receivable - 2,864,482

Accounts receivable - grants 1,224,551 1,547,469

TOTAL ASSETS 1,667,794$ 4,854,088$

CURRENT LIABILITIES:

Accounts payable 1,224,551$ 4,411,951$

TOTAL CURRENT LIABILITIES 1,224,551 4,411,951

NONCURRENT LIABILITIES:

Deposits - legal defense 443,243 442,137

TOTAL NONCURRENT LIABILITIES 443,243 442,137

TOTAL LIABILITIES 1,667,794$ 4,854,088$


23

Total Agency Funds

LIABILITIES

ASSETS


STATEMENTS OF FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDS


June 30, 2014

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See independent auditors’ report.24


NOTES TO THE BASIC FINANCIAL STATEMENTS

For the fiscal year ended June 30, 2014(With comparative totals for the fiscal year ended June 30, 2013)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

a. Organization and Purpose:

The Santa Ana Watershed Project Authority (Authority) was reformed in 1972 pursuant to the provisions of Article 1, Chapter 5, Division 7, Title 1 of the Government Code of the State of California relating to the joint exercise of powers common to public agencies, for the purpose of undertaking projects for water quality control and protection and pollution abatement in the Santa Ana River Watershed. The five member agencies are the Orange County Water District, Inland Empire Utilities Agency (formerly Chino Basin Municipal Water District), Eastern Municipal Water District, San Bernardino Valley Municipal Water District, and Western Municipal Water District. The Board of Commissioners is the governing body of the Authority. Each member of the Authority appoints, by Resolution of its governing body, one member of its governing body to act as its Commissioner on the Board.

Accounting principles generally accepted in the United States of America require that the reporting entity include (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The criteria provided in Government Accounting Standard Board Statementshave been considered and there are no agencies or entities which should be presented with the Authority.

The Authority’s enterprise activities are accounted for on the basis of funds, each of which is considered a separate accounting entity. The operations of each activity are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, net position, revenue, and expenses. Authority resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. The Authority’s various funds are grouped as follows:

Capital Projects Activities - Record the activity of the various capital improvement projects undertaken by the Authority.

Internal Administration - Reflect the grouping of general and administration expenses and department overhead costs. Reported amounts are net of allocations made in support of capital project and enterprise activities.

Enterprise Activities - Reflect operations of the Inland Empire Brine Line System (Brine Line) pipelines.

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NOTES TO THE BASIC FINANCIAL STATEMENTS(CONTINUED)



1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):

a. Organization and Purpose (Continued):

The Authority also has the following Fiduciary Funds:

Agency Funds:

Agency funds are utilized to record monies held on behalf of others in a fiduciary capacity. The Authority has three agency funds:

The Legal Defense Fund - This fund was established in conjunction with the Environmental Protection Agency in connection with potential third-party lawsuits arising from the discharge of effluent which originates from the Stringfellow Hazardous Waste Site, while the facility is operated by the Environmental Protection Agency or its agents under the use permit.

The Integrated Regional Water Management Program (Prop 50) - This fund was established to account for the pass-thru monies of the Authority’s member agencies.

The Integrated Regional Water Management Program (Prop 84 Capital Projects) -This fund was established to account for pass-thru monies of the Authority’s member agencies.

b. Basis of Presentation:

The Authority reports its activities as an enterprise fund, which is a Proprietary type fund used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the Authority is that the cost of providing services on a continuing basis be financed or recovered primarily through user charges, capital grants, and similar funding.

c. Measurement Focus and Basis of Accounting:

“Measurement focus” is a term used to describe which transactions are recorded within the various financial statements. “Basis of accounting” refers to when transactions are recorded regardless of the measurement focus applied. The accompanying financial statements are reported using the “economic resources measurement focus”, and the “accrual basis of accounting”. Under the economic measurement focus all assets, deferred outflows of resources, liabilities and deferred inflows of resources (whether current or noncurrent) associated with these activities are included on the Statement of Net Position.

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c. Measurement Focus and Basis of Accounting (Continued):

The Statement of Revenues, Expenses and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

d. New Accounting Pronouncements:

Current Year Standards:

GASB 66 - “Technical Corrections, an amendment of GASB Statement No. 10 and Statement No. 62”, required to be implemented in the current fiscal year did not impact the Authority.

GASB 70 - “Accounting and Financial Reporting for Nonexchange Financial Guarantees”, required to be implemented in the current fiscal year did not impact the Authority.

Pending Accounting Standards:

GASB has issued the following statements which may impact the Authority’s financial reporting requirements in the future:

GASB 68 - “Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27”, effective for the fiscal years beginning after June 15, 2014.

GASB 69 - “Government Combinations and Disposals of Government Operations”, effective for periods beginning after December 15, 2013.

GASB 71 - “Pension Transition for Contributions Made Subsequent to the Measurement Date, an Amendment of GASB Statement No. 68”, effective for periods beginning after June 15, 2014.

e. Deferred Outflows/Inflows of Resources:

In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority does not have any applicable deferred outflows of resources.

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e. Deferred Outflows/Inflows of Resources (Continued):

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The Authority does not have any applicable deferred inflows of resources.

f. Net Position Flow Assumption:

Sometimes the Authority will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the Authority’s practice to consider restricted - net position to have been depleted before unrestricted - net position is applied; however it is at the Board of Commissioners’discretion.

g. Operating Revenues and Expenses:

Operating revenues, such as wastewater treatment and wastewater disposal, capacity rights, and contractual services, result from exchange transactions associated with the principal activity of the Authority. Exchange transactions are those in which each party receives and gives up essentially equal values.

Revenues not included in the above category are reported as nonoperating revenues. Nonoperating revenues such as grant funding, member contributions, and investment income, result from non-exchange transactions or ancillary activities in which the Authority gives (receives) value without directly receiving (giving) value in exchange.

Operating expenses include wastewater treatment and disposal, studies and planning costs, management, administration, and depreciation on capital assets. All expenses not meeting this definition are reported as nonoperating expenses.

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h. Cash and Cash Equivalents:

Substantially all of Authority’s cash is invested in interest bearing cash accounts. The Authority considers all highly liquid investments with initial maturities of three months or less to be cash equivalents.

i. Investments and Investment Policy:

The Authority has adopted an investment policy directing the Authority’s Chief Financial Officer to deposit funds in financial institutions.

Investments are stated at their fair value which represents the quoted or stated market value. Investments that are not traded on a market, such as investments in external pools, are valued based on the stated fair value as represented by the external pool.

Changes in market value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in market value, and any gains or losses realized upon the liquidation or sale of investments.

j. Restricted Assets:

Restricted assets are financial resources generated for a specific purpose such as capital projects or debt service. These assets are for the benefit of a specified purpose and, as such, are legally or contractually restricted by an external third-party agreement.

k. Accounts Receivable:

The Authority extends credit in the normal course of operations. Management deems all accounts receivable as collectible at year-end. Accordingly, an allowance for doubtful accounts has not been recorded.

l. Prepaid Expenses:

Certain payments to vendors reflects costs or deposits applicable to future accounting periods and are recorded as prepaid items in the basic financial statements.

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m. Mitigation Credits:

Mitigation credits are recorded at cost and are purchased and used by those member agencies needing habitat mitigation within the Watershed for specific development projects.

n. Capital Assets:

Capital assets acquired and/or constructed are capitalized at historical cost. Capital assets are defined as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Donated assets are recorded at estimated cost at the date of donation. Upon retirement or other disposition of capital assets, the cost and related accumulated depreciation are removed from the respective balances and any gains or losses are recognized. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows:

Building and improvements 40 yearsLand improvements 15 to 20 yearsVehicles 3 yearsFurniture and office equipment 3 yearsBrine Line and equipment 25 years

The Authority capitalizes a portion of general and administration expenses and interest expense relating to certain long-term projects. For the years ended June 30, 2014 and 2013, the Authority capitalized interest totaling $0 and $484,313, respectively.

Wastewater treatment and disposal rights are included as capital assets and are capitalized at cost. Amortization is computed using the straight-line method over the remaining life of the Authority’s contract with the Orange County Sanitation District for the acquisition of the rights at the time the right was acquired. The current contract expires April 26, 2046.

o. Compensated Absences:

The Authority’s policy is to pay out sick leave time accrued upon retirement, death or termination on a variable scale of 15% to 60% based on years of service. Each full-time employee accrues 96 hours of sick time per year. The liability for this benefit has been accrued in these financial statements.

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o. Compensated Absences (Continued):

Employees of the Authority are entitled to paid vacation depending on length of service. Vacation is accrued for full-time employees beginning on the first day of full-time employment, and ranges from 12 to 22 days per year based on longevity with the Authority. Part-time employees accrue vacation on a pro-rated basis based on the actual number of hours worked.

Authority policy requires employees to pass a probationary period prior to payment for accrued vacation hours. Employees are allowed to accumulate vacation leave up to twice their annual accrual, but no more than 36 days.

p. Unearned Revenue:

Unearned revenue represents wastewater treatment and disposal capacity rights sold, which are being recognized as revenue over the same term as the purchased rights and are being amortized on a straight–line basis.

q. Capital Contributions:

Capital contributions consist of grants awarded and contributions received for the acquisition and/or construction of capital assets. Contributions received for studies, planning, administration, and other non-capital assets are considered non-operating revenue.

r. Capital and Operating Grants:

When a grant agreement is approved and eligible expenditures are incurred, the amount is recorded as a capital or operating grant receivable on the statement of net position and as capital grant contribution or operating grant revenue, as appropriate, on the statement of revenues, expenses and changes in net position.

s. Budgetary Policies:

The Authority adopts a bi-annual non-appropriated budget for planning, control, and evaluation purposes. Budgetary control and evaluation are affected by comparison of actual revenue and expense with planned revenue and expense for the period.

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t. Net Position:

The financial statements utilize a net position presentation. Net position is categorized as follows:

Net Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation and reduced by any outstanding debt against the acquisition, construction, or improvement of those assets.

Restricted Net Position - This component of net position consists of constraints placed on net position use imposed by creditors, grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position - This component of net position consists of net position that does not meet the definition of net investment in capital assets orrestricted.

u. Use of Estimates:

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that effect certain reported amounts and disclosures. Accordingly, actual results could differ from the estimates.

v. Prior Year Data:

Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Authority’s prior year financial statements, from which this selected financial data was derived.

w. Reclassifications:

Certain prior year amounts have been reclassified to reflect the current year presentation and have no effect on the changes in net position for the year ended June 30, 2013 with the exception of the amount reported in Note 16.

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2. CASH AND INVESTMENTS:

Cash and Investments:

Cash and investments as of June 30, 2014 and 2013 are classified in the accompanying financial statements as follows:

2014 2013Statements of Net Position:

Cash and cash equivalents $ 37,947,998 $ 37,486,042Cash and cash equivalents - held for mitigation 1,245,565 1,135,039Investments 16,394,301 16,428,710

Total cash and cash equivalents 55,587,864 55,049,791

Statements of Fiduciary Assets and Liabilities - Agency Funds:

Cash and cash equivalents 443,243 442,137

Total cash and cash equivalents $ 56,031,107 $ 55,491,928

Cash and investments as of June 30, 2014 and 2013 consist of the following:

2014 2013Cash on hand $ 500 $ 500Deposits with financial institution 1,201,907 2,371,442Investments 54,828,700 53,119,986

Total cash and investments $ 56,031,107 $ 55,491,928

Investments in LAIF and CalTRUST are considered highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. As of June 30, 2014 and 2013, the LAIF and CalTRUST pools had a weighted average maturity of the following:

2014 2013California Local Agency Investment Fund (LAIF) 232 days 234 daysInvestment Trust of California (CalTRUST) 730 days 792 days

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2. CASH AND INVESTMENTS (CONTINUED):

Investments Authorized by the California Government Code and the Authority’s Investment Policy:

The table below identifies the investment types that are authorized by the Authority inaccordance with the California Government Code (or the Authority’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Authority’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the Authority, rather than the general provisions of the California Government Code or the Authority’s investment policy.

Maximum MaximumMaximum Percentage Investment

Authorized Investment Type Maturity of Portfolio in One IssuerUnited States Treasury Bills, Notes

and Bonds 5 years None N/AU.S. Government Sponsored Agency

Securities 5 years None NoneMutual Funds 90 days 15% NoneMunicipal Bonds 5 years None NoneBanker’s Acceptances 180 days 40% 30%Commercial Paper 270 days 15% *Negotiable Certificates of Deposit 5 years 30% $250,000Repurchase Agreements 1 year None NoneMedium-Term Corporate Notes 5 years 30% NoneLocal Agency Investment Fund (LAIF) N/A None N/ACollateralized Bank Deposits 5 years 25% NoneInvestment Trust of California (CalTRUST) 5 years 15% N/A

N/A - Not Applicable

* - 10% of outstanding paper of an issuing corporation

The Authority’s investment policy states that maximum maturities shall not exceed 5 years without specific approval by the Commission. Authority investments as of June 30, 2014include United States Treasury Bills that exceed the maximum maturity of five years. These investments have been approved by the Board of Commissioners in prior years.

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Custodial Credit Risk:

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIFand CalTRUST).

The California Government Code and the Authority’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit), and the Authority’s investment policy that requires no more than two-thirds of the Authority’s deposits in a depository shall be collateralized by mortgage-backed securities, with the remainder to be secured by non-mortgage-backed securities. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Authority deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Of the Authority’s bank balances, up to $250,000 is federally insured and the remaining balance is collateralized in accordance with the Code; however, the collateralized securities are not held in the Authority’s name.

Investment in State Investment Pool:

The Authority is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

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Investment in CalTRUST Investment Pool:

CalTRUST is a Joint Powers Agency Authority created by local public agencies to provide a convenient method for local public agencies to pool their assets for investment purposes. CalTRUST is governed by a Board of Trustees made up of experienced local agency treasurers and investment officers. The Board sets overall policies for the program and selects and supervises the activities of the investment manager and other agents. CalTRUST maintains and administers four pooled accounts within the program: Money Market, Short-Term, Medium-Term and Long-Term. The Money Market account permits daily transactions, with same-day liquidity (provided redemption requests are received by 1:00 p.m. Pacific time), with no limit on the amount of funds that may be invested.

The short-term account permits an unlimited number of transactions per month (with prior day notice), with no limit on the amount of funds that may be invested. The medium- and long-term accounts permit investments, withdrawals and transfers once per month, with five days advance notice. All CalTRUST accounts comply with the limits and restrictions placed on local agency investments by the California Government Code. CalTRUST imposes a $250,000 minimum investment; however, there is no maximum limit. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s percentage interest of the fair value provided by CalTRUST for the CalTRUST accounts (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by CalTRUST.

Interest Rate Risk:

Interest rate risk is the risk where changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Authority manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments, and by timing cash flows from maturities so that a portion of the portfolio matures or comes close to maturity evenly over time as necessary to provide requirements for cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the Authority’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Authority’s investments by maturity date.

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Interest Rate Risk (Continued):

Maturities of investments and cash equivalents as of June 30, 2014 were as follows:

Remaining Maturity (in Months)

12 Months 13 - 24 25 - 60Investment Type or Less Months Months Total

U.S. Treasury Strips $ 2,347,590 $ 2,324,567 $ 2,551,750 $ 7,223,907U.S. Government Sponsored Agency Securities 1,493,885 - 3,059,326 4,553,211LAIF 38,419,002 - - 38,419,002CalTRUST 2,124,248 - - 2,124,248Negotiable Certificates of Deposit 250,248 751,403 1,491,284 2,492,935Mutual Funds 15,397 - - 15,397

$44,650,370 $ 3,075,970 $ 7,102,360 $54,828,700

Maturities of investments and cash equivalents as of June 30, 2013 were as follows:

Remaining Maturity (in Months)

12 Months 13 - 24 25 - 60Investment Type or Less Months Months Total

U.S. Treasury Strips $ 2,447,382 $ 2,853,361 $ 4,306,344 $ 9,607,087U.S. Government Sponsored Agency Securities - 1,021,320 1,962,820 2,984,140LAIF 36,670,812 - - 36,670,812CalTRUST 2,099,606 - - 2,099,606Negotiable Certificates of Deposit - 249,613 1,488,264 1,737,877Mutual Funds 20,464 - - 20,464

$41,238,264 $ 4,124,294 $ 7,757,428 $53,119,986

Credit Risk:

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented on the following page is the minimum rating required by (where applicable) the California Government Code, the Authority’s investment policy, or debt agreements, and the actual rating as of year end for each investment type. This is measured by the assignment of a rating by a nationally recognized statistical rating organization; however, LAIF and CalTRUST are not rated.

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Credit Risk (Continued):

Credit ratings of investments and cash equivalents as of June 30, 2014 were as follows:

Minimum ExemptLegal From Rating as of Year End Not

Investment Type Total Rating Disclosure AAA AA+ RatedU.S. Treasury Strips $ 7,223,907 N/A $ 7,223,907 $ - $ - $ -U.S. Government

Sponsored Agency

Securities 4,553,211 N/A - - 4,553,211 -LAIF 38,419,002 N/A - - - 38,419,002CalTRUST 2,124,248 N/A - - - 2,124,248Negotiable Certificates

of Deposit 2,492,935 N/A - - - 2,492,935Mutual Funds 15,397 AAA - 15,397 - -

$54,828,700 $ 7,223,907 $ 15,397 $ 4,553,211 $43,036,185

Credit ratings of investments and cash equivalents as of June 30, 2013 were as follows:

Minimum ExemptLegal From Rating as of Year End Not

Investment Type Total Rating Disclosure AAA AA RatedU.S. Treasury Strips $ 9,607,087 N/A $ 9,607,087 $ - $ - $ -U.S. Government

Sponsored AgencySecurities 2,984,140 N/A - - 2,984,140 -

LAIF 36,670,812 N/A - - - 36,670,812CalTRUST 2,099,606 N/A - - - 2,099,606Negotiable Certificates

of Deposit 1,737,877 N/A - - - 1,737,877Mutual Funds 20,464 AAA - 20,464 - -

$53,119,986 $ 9,607,087 $ 20,464 $ 2,984,140 $40,508,295

Concentration of Credit Risk:

The investment policy of the Authority contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The Authority has no investments that represent 5% or more of total Authority investments invested in one issuer.

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3. NOTES RECEIVABLE:

During the year ended June 30, 1994, the Authority sold capacity rights in the Brine Line pipeline under an installment agreement with San Bernardino Valley Municipal Water District. Sale terms specify annual installments of $456,250 with zero interest due June 30 of each year through 2013. At June 30, 2013 the note receivable was paid-in-full.

During the year ended June 30, 1998, the Authority sold capacity rights in the Brine Line pipeline under an installment agreement with Inland Empire Utilities Agency. Sale terms specify annual installments of $267,188 with zero interest due July 1 of each year through 2017. The receivable has been discounted at the imputed interest rate of 6.00% and totals $925,832 and $1,125,491 at June 30, 2014 and 2013, respectively. Remaining repayments total $1,068,750 and $1,335,937 with an unamortized discount of $142,918 and $210,446 at June 30, 2014 and 2013, respectively.

During the year ended June 30, 1999, the Authority sold capacity rights in the Brine Line pipeline under and installment agreement with Western Municipal Water District. Sale terms specify annual installments of $89,063 with zero interest due July 1 of each year through 2018. The receivable has been discounted at the imputed interest rate of 6.00% and totals $2,226,585 and $2,599,216 at June 30, 2014 and 2013, respectively. Remaining repayments total $2,642,918 and $3,171,502 with an unamortized discount of $416,333 and $572,286 at June 30, 2014 and 2013, respectively.

Notes receivable amounts at June 30, are as follows:

FiscalYear Ending Principal Interest Total

2015 $ 606,627 $ 189,145 $ 795,7722016 643,024 152,748 795,7722017 681,605 114,166 795,7712018 722,502 73,269 795,7712019 498,659 29,923 528,582

Total 3,152,417 $ 559,251 $ 3,711,668Less: current portion (606,627)

Total noncurrent $ 2,545,790

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4. LOAN RECEIVABLE:

On June 29, 2010, The Authority agreed to loan Orange County Flood Control District (OCFCD), 10% of the total costs, not to exceed $10 million for the protection and relocation of the Santa Ana Regional Interceptor Line Project (SARI Project). On June 21, 2011, the agreement was amended to increase the loan to 10% of total costs, not to exceed $12 million. As of June 30, 2014, the Authority has made deposits totaling $10 million. Terms of the agreement call for payment of principal to commence once subvention funding is received at a zero percent interest rate due each year through July 1, 2022.

Principal and interest payments are based on subvention funding received by OCFCD, which totaled $1,766,186 and $916,414 for fiscal years ended June 30, 2014 and 2013, respectively. On the unpaid balance at July 1, 2018, interest will accrue at the current LAIF interest rate. The receivable has been discounted at the June 30, 2012 LAIF interest rate of 0.363%, and totals $6,761,672 and $8,527,858 at June 30, 2014 and 2013, respectively. Remaining repayments total $6,786,687 and $8,556,000 with an unamortized discount of $25,015 and $28,142 at June 30, 2014 and 2013, respectively.

5. MITIGATION CREDITS:

On March 17, 2000, the State of California voted to approve, Proposition 13, the Costa-Machado Water Act of 2000 containing the Southern California Integrated Watershed Program (SCIWP), providing $235 million for local grant assistance. The State Legislature appropriated the funds to the State Water Resource Control Board (SWRCB) to be allocated to the Authority for projects to rehabilitate and improve the Santa Ana River Watershed.

On April 23, 2003, as part of the SCIWP, the Authority purchased 100 acres of mitigation credits from the Riverside County Regional Park and Open Space District. These credits are purchased and used by those needing habitat mitigation within the Watershed for specific development projects.

The changes to mitigation credits at June 30, 2014 and 2013 were as follows:

Balance Balance2013 Additions Deletions 2014

$ 2,046,560 $ - $ (116,000) $ 1,930,560


$ 2,046,560 $ - $ - $ 2,046,560

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6. CAPITAL ASSETS:

Changes in capital assets for the year ended June 30, 2014 were as follows:


Capital assets, not being depreciated:Land $ 765,444 $ - $ - $ 765,444Construction in progress 211,769 466,106 - 677,875

Total capital assets,not being depreciated 977,213 466,106 - 1,443,319

Capital assets, being depreciatedand amortized:

Land improvements 140,217 - - 140,217Buildings 1,447,263 - - 1,447,263Furniture and equipment 297,698 31,153 - 328,851Brine Line and equipment 127,931,384 13,347 - 127,944,731Wastewater treatment and

disposal rights 55,662,342 - - 55,662,342Total capital assets, beingdepreciated and amortized 185,478,904 44,500 - 185,523,404

Less accumulated depreciationand amortization for:

Land improvements (72,881) (3,506) - (76,387)Buildings (750,692) (38,003) - (788,695)Furniture and equipment (219,658) (21,738) - (241,396)Brine Line and equipment (52,939,993) (3,074,611) - (56,014,604)Accumulated amortization (21,123,840) (1,400,918) - (22,524,758)

Total accumulated depreciationand amortization (75,107,064) (4,538,776) (79,645,840)

Total capital assets,being depreciated, net 110,371,840 (4,494,276) - 105,877,564

Total capital assets, net $111,349,053 $ (4,028,170) $ - $ 107,320,883

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6. CAPITAL ASSETS (CONTINUED):

Changes in capital assets for the year ended June 30, 2013 were as follows:


Capital assets, not being depreciated:Land $ 765,444 $ - $ - $ 765,444Construction in progress 18,296,574 2,050,652 (20,135,457) 211,769

Total capital assets,not being depreciated 19,062,018 2,050,652 (20,135,457) 977,213

Capital assets, being depreciatedand amortized:

Land improvements 140,217 - - 140,217Buildings 1,447,263 - - 1,447,263Furniture and equipment 271,004 26,694 - 297,698Brine Line and equipment 107,795,927 20,135,457 - 127,931,384Wastewater treatment and

disposal rights 55,662,342 - - 55,662,342Total capital assets, being

depreciated and amortized 165,316,753 20,162,151 - 185,478,904

Less accumulated depreciationand amortization for:

Land improvements (69,375) (3,506) - (72,881)Buildings (712,688) (38,004) - (750,692)Furniture and equipment (200,127) (19,531) - (219,658)Brine Line and equipment (49,866,373) (3,073,620) - (52,939,993)Accumulated amortization (19,722,922) (1,400,918) - (21,123,840)

Total accumulated depreciationand amortization (70,571,485) (4,535,579) (75,107,064)

Total capital assets,being depreciated, net 94,745,268 15,626,572 - 110,371,840

Total capital assets, net $113,807,286 $ 17,677,224 $(20,135,457) $ 111,349,053

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7. COMPENSATED ABSENCES:

Compensated absences comprise unpaid vacation and sick leave which is accrued as earned.

The changes to compensated absences at June 30, 2014 and 2013 were as follows:

Balance Balance Current Long-term2013 Earned Taken 2014 Portion Portion

Compensated absences $ 329,432 $ 319,638 $ (273,658) $ 375,412 $ 112,624 $ 262,788

Balance Balance Current Long-term2012 Earned Taken 2013 Portion Portion

Compensated absences $ 305,125 $ 278,427 $ (254,120) $ 329,432 $ 98,830 $ 230,602

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8. LONG-TERM DEBT:

Changes in long-term debt for the year ended June 30, 2014 were as follows:

PrincipalBalance Payments Balance

2013 Additions Amortization 2014SWRCB Contract Loans:

Loan #2 $ 116,215 $ - $ (116,215) $ -Loan #3 775,397 - (382,534) 392,863Loan #4 1,324,843 - (428,627) 896,216Loan #5 1,493,916 - (484,413) 1,009,503

Total SWRCB Contract Loans 3,710,371 - (1,411,789) 2,298,582

SWRCB Brine Line Reach V Loans:Loan I 2,669,320 - (265,993) 2,403,327Loan II & III 2,154,645 - (215,571) 1,939,074Loan IV 1,601,497 - (180,739) 1,420,758Loan V 2,296,230 - (229,736) 2,066,494

Total SWRCB Brine Line

Reach V Loans 8,721,692 - (892,039) 7,829,653

Member Agency Loans:OCWD Loan 1,500,654 - (266,211) 1,234,443WRCRWA SFR Loans #2, 3 and 4 2,459,062 - (465,069) 1,993,993

Total Member Agency Loans 3,959,716 - (731,280) 3,228,436

State Revolving Fund Loan

Reach IVA & IVB 16,142,316 - (640,679) 15,501,637

Total long-term debt 32,534,095 $ - $ (3,675,787) 28,858,308Less: current portion (3,639,412) (3,649,872)

Long-term portion $ 28,894,683 $ 25,208,436

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8. LONG-TERM DEBT (CONTINUED):

Changes in long-term debt for the year ended June 30, 2013 were as follows:

PrincipalBalance Payments Balance

2012 Additions Amortization 2013SWRCB Contract Loans:

Loan #1 $ 971,099 $ - $ (971,099) $ -Loan #2 229,044 - (112,829) 116,215Loan #3 1,147,874 - (372,477) 775,397Loan #4 1,740,986 - (416,143) 1,324,843Loan #5 1,965,135 - (471,219) 1,493,916

Total SWRCB Contract Loans 6,054,138 - (2,343,767) 3,710,371

SWRCB Brine Line Reach V Loans:Loan I 2,928,321 - (259,001) 2,669,320Loan II & III 2,364,753 - (210,108) 2,154,645Loan IV 1,777,142 - (175,645) 1,601,497Loan V 2,520,145 - (223,915) 2,296,230

Total SWRCB Brine Line

Reach V Loans 9,590,361 - (868,669) 8,721,692

Member Agency Loans:OCWD Loan 1,751,796 - (251,142) 1,500,654WRCRWA SFR Loans #2, 3 and 4 2,911,465 - (452,403) 2,459,062

Total Member Agency Loans 4,663,261 - (703,545) 3,959,716

State Revolving Fund Loan

Reach IVA & IVB 15,850,337 291,979 - 16,142,316

Total long-term debt 36,158,097 $ 291,979 $ (3,915,981) 32,534,095Less: current portion (3,915,984) (3,639,412)

Long-term portion $ 32,242,113 $ 28,894,683

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State Water Resource Control Board - Loan No.1:

This loan, in the amount of $14,758,590, was for the construction of Reach IV-D of the Brine Line Pipeline. Annual principal and interest payments of $1,001,203, at the rate of 3.10%, commenced on December 22, 1993, and matured on December 22, 2012.

State Water Resources Control Board - Loan No. 2:

This loan, in the amount of $1,775,843, was for the construction of Reach IV-D of the Brine Line Pipeline. Annual principal and interest payments of $119,701, at the rate of 3.00%, commenced on September 1, 1994, and matured on September 1, 2013.


This loan, in the amount of $6,127,405, was for the construction of Reach IV-D of the Brine Line Pipeline. Annual principal and interest payments of $403,470, at the rate of 2.70%, commenced on October 4, 1995, and will mature on October 4, 2014.


2015 $ 392,863 $ 10,607 $ 403,470Total 392,863 $ 10,607 $ 403,470

Less: current portion (392,863)Total noncurrent $ -


This loan, in the amount of $6,828,963, was for the construction of Reach IV-D of the Brine Line Pipeline. Annual principal and interest payments of $468,372, at the rate of 3.00%, commenced on November 30, 1996, and will mature on November 30, 2015.


2015 $ 441,486 $ 26,886 $ 468,3722016 454,730 13,642 468,372

Total 896,216 $ 40,528 $ 936,744Less: current portion (441,486)

Total noncurrent $ 454,730

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This loan, in the amount of $7,814,181, was for the construction of Reach IV-E of the Brine Line Pipeline. Annual principal and interest payments of $526,243 in fiscal year 2015 and $525,849 in fiscal year 2016, at the rate of 2.80%, commenced on January 10, 1996, and will mature on January 10, 2016.


2015 $ 497,977 $ 28,266 $ 526,2432016 511,526 14,323 525,849



State Water Resources Control Board - Brine Line Reach V Loan No. I:

This loan, in the amount of $5,089,798, was for the construction of Reach V of the Brine Line Pipeline. Annual principal and interest payments of $388,065, at the rate of 2.70%, commenced on October 5, 2002, and will mature on October 5, 2021.


2015 $ 273,175 $ 64,890 $ 338,0652016 280,551 57,514 338,0652017 288,126 49,939 338,0652018 295,905 42,160 338,0652019 303,895 34,170 338,065

2020 - 2022 961,675 52,390 1,014,065Total 2,403,327 $ 301,063 $ 2,704,390

Less: current portion (273,175)


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State Water Resources Control Board - Brine Line Reach V Loan No. II and III:



2015 $ 221,176 $ 50,416 $ 271,5922016 226,926 44,666 271,5922017 232,827 38,765 271,5922018 238,880 32,712 271,5922019 245,091 26,501 271,592

2020 - 2022 774,174 40,602 814,776Total 1,939,074 $ 233,662 $ 2,172,736



State Water Resources Control Board - Brine Line Reach V Loan No. IV:

This loan, in the amount of $3,373,815, was for the construction of Reach V of the Brine Line Pipeline. Annual principal and interest payments of $227,182, at the rate of 2.90%, commenced on September 11, 2001, and will mature on September 11, 2020.


2015 $ 185,980 $ 41,202 $ 227,1822016 191,373 35,809 227,1822017 196,923 30,259 227,1822018 202,634 24,548 227,1822019 208,510 18,672 227,182

2020 - 2021 435,338 19,026 454,364Total 1,420,758 $ 169,516 $ 1,590,274



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State Water Resources Control Board - Brine Line Reach V Loan No. V:



2015 $ 235,710 $ 53,729 $ 289,4392016 241,838 47,601 289,4392017 248,126 41,313 289,4392018 254,577 34,862 289,4392019 261,197 28,242 289,439

2020 - 2022 825,046 43,271 868,317Total 2,066,494 $ 249,018 $ 2,315,512



Orange County Water District:

This was a purchase obligation for Brine Line Pipeline capacity in the amount of $4,706,326. Annual principal and interest payments of $356,250, at the rate of 6.00%, commenced on July 1, 1999, and will mature on July 1, 2018.


2015 $ 282,183 $ 74,067 $ 356,2502016 299,114 57,136 356,2502017 317,061 39,189 356,2502018 336,085 20,165 356,250



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Western Riverside County Regional Wastewater Authority:

This is a contractual obligation, in the amount of $8,003,454, with the WRCRWA Joint Powers Authority for a portion of loans from the State Water Resources Control Board for the construction of wastewater treatment facilities. Annual principal and interest payments of $533,924, at the rate of 2.80%, commenced on February 13, 1999, and will mature on June 1, 2018.


2015 $ 478,092 $ 55,832 $ 533,9242016 491,479 42,445 533,9242017 505,240 28,684 533,9242018 519,182 14,537 533,719



State Revolving Fund Loan - Reach IV-A and IV-B:

On April 13, 2011, the Authority entered into a loan agreement to receive up to $16,850,337 from the California State Water Resources Control Board to repair the existing brine disposal pipeline to extend its useful life of the Inland Empire Brine Line upstream of Prado Dam. Terms of the loan call for annual principal and interest payments of $1,044,273 based on the net loan amount of $16,850,337, commencing on December 29, 2013 at the rate of 2.60%, maturing December 29, 2032.


2015 $ 641,230 $ 403,043 $ 1,044,2732016 657,903 386,370 1,044,2732017 675,008 369,265 1,044,2732018 692,558 351,715 1,044,2732019 710,565 333,708 1,044,273

2020 - 2024 3,839,741 1,381,625 5,221,3662025 - 2029 4,365,547 855,819 5,221,3662030 - 2033 3,919,085 258,007 4,177,092

Total 15,501,637 $ 4,339,552 $ 19,841,189Less: current portion (641,230)


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9. UNEARNED REVENUE:

The changes to unearned revenue at June 30, 2014 and 2013 were as follows:


$ 82,759,903 $ - $ (2,510,154) $ 80,249,749


$ 84,292,213 $ 977,845 $ (2,510,155) $ 82,759,903

10. NET POSITION:

Calculation of net position as of June 30, 2014 and 2013 were as follows:

2014 2013Net investment in capital assets:

Capital assets - not being depreciated $ 1,443,319 $ 977,213Depreciable capital assets, net 105,877,564 110,371,840SWRCB contract loans payable (2,298,582) (3,710,371)SWRCB Brine Line Reach V loans payable (7,829,653) (8,721,692)OCWD loan payable (1,234,443) (1,500,654)SRF Reach IVA & IVB loan payable (as restated) (15,501,637) (16,142,316)

Total net investment in capital assets 80,456,568 81,274,020

Restricted net position:SRF Reach IVA & IVB reserve requirement 1,050,000 1,050,000Mitigation 3,117,861 3,182,102

Total restricted 4,167,861 4,232,102

Unrestricted net position (as restated) (18,028,461) (17,845,678)

Total net position $ 66,595,968 $ 67,660,444

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11. JOINT VENTURES:

Western Riverside County Regional Wastewater Authority (WRCRWA):

The Authority was a member of WRCRWA, a Joint Powers Authority created on April 23, 1992, for the purpose of developing a regional wastewater treatment facility for the benefit of its members. On June 30, 2012, Addendum No. 7 to the Joint Exercise of Powers Agreement was entered into by all members of the Authority to execute the withdrawal of the Authority from WRCRWA.

The Authority is responsible for a certain portion of WRCRWA’s long-term debt and will continue making annual debt service payments to the Joint Powers Authority for its share of the State Revolving Fund Loans from the State Water Resources Control Board. The recorded amount is reflected in the financial statements as long-term debt. In addition, the Authority will continue to provide mutual aid for planned and unplanned facilities maintenance.

The financial statements of WRCRWA are available from Western Municipal Water District, 14205 Meridian Parkway, Riverside, California 92508.

Lake Elsinore & San Jacinto Watersheds Authority (LESJWA):

The Authority is a member of LESJWA, a Joint Powers Authority created on March 8, 2000, for the purpose of implementing projects and programs to improve the two watersheds in order to preserve agricultural land, protect wildlife habitat, protect and enhance recreational resources, and improve lake water quality, for the benefit of the general public. Other members include the City of Canyon Lake, the City of Lake Elsinore, Elsinore Valley Municipal Water District, and the County of Riverside. Each member agency appoints one Director and one alternate to serve on the Board, with both also on the member’s agency’s board. Each member agency has agreed to make contributions for construction and operations, if necessary.

Upon dissolution of LESJWA, each member agency will receive its proportionate or otherwise defined share of the assets, and each member agency will contribute its proportionate or otherwise defined share of any enforceable liabilities incurred.

The Authority conducts the administrative function of LESJWA, which reimburses the Authority based on invoices for administrative services provided. During the years ended June 30, 2014 and 2013, administrative services provided to LESJWA totaled $156,886 and $171,928, respectively, which are included in operating revenue.

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11. JOINT VENTURES (CONTINUED):

Lake Elsinore & San Jacinto Watersheds Authority (LESJWA) (Continued):

The financial statements for LESJWA are available at the Authority.

As of June 30, 2014 and 2013, LESJWA had assets, liabilities and net position as follows:

2014 2013

Total assets $ 490,644 $ 419,006

Total liabilities $ 36,643 $ 26,605

Net position $ 454,001 $ 392,401

12. DEFINED BENEFIT PENSION PLANS:

Plan Descriptions:

The Authority participates in 2% at 55 and 2% at 62 Risk Pool in the California Public Employees’ Retirement System (CalPERS), both cost-sharing, multiple-employer defined benefit pension plans. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public agencies within the State of California. Benefit provisions and all other requirements are established by state statute and CalPERS. Copies of CalPERS annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA, 95814.

Funding Policy:

The contribution rate for plan members in the CalPERS 2% at 55 Risk Pool Retirement Plan is 7% of their annual covered salary. The Authority makes these contributions required of Authority employees on their behalf and for their account. Upon the implementation of the California Employees’ Pension Reform Act (PEPRA) on January 1, 2013, this plan is only open to qualified employees (employees hired before January 1, 2013 or employees hired after January 1, 2013 and have been in the PERS System).

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12. DEFINED BENEFIT PENSION PLANS (CONTINUED):

Funding Policy (Continued):

The CalPERS 2% at 62 Risk Pool Retirement Plan was created by PEPRA as of January 1, 2013 and is open to all new employees who do not qualify for the 2% at 55 Risk Pool Retirement Plan. Active plan members of the 2% at 62 Risk Pool Retirement Plan are required to contribute 6.25% of their annual covered salary. PEPRA does not allow the Authority to pay any portion of the employee required contribution on behalf of the employee. The Authority is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members under the California Employees’ Pension Reform Act (PEPRA) provisions. The actuarial methods and assumptions are those adopted by the CalPERS Board of Administration.

The required employer contribution rates are equal to the annual pension cost (APC) percentage of payroll for fiscal years 2014, 2013 and 2012, as noted below. The contribution requirements of the plan members are established by State statute, and the employer contribution rate is established and may be amended by CalPERS.

For fiscal years 2014, 2013 and 2012, the Authority’s annual contributions for the 2% at 55 CalPERS plan were equal to the Authority’s required and actual contributions for each fiscal year as follows:

Fiscal Annual Pension Percentage of APC PercentageYear Cost (APC) APC Contributed of Payroll2014 $ 258,884 100% 11.709%2013 268,937 100% 10.690%2012 297,632 100% 12.917%

For fiscal years 2014, 2013 and 2012, the Authority’s annual contributions for the 2% at 62CalPERS plan were equal to the Authority’s required and actual contributions for each fiscal year as follows:

Fiscal Annual Pension Percentage of APC PercentageYear Cost (APC) APC Contributed of Payroll2014 $ 13,535 100% 6.250%2013 N/A N/A N/A2012 N/A N/A N/A

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13. OTHER POST-EMPLOYMENT BENEFITS (OPEB) ASSET:

Plan Description and Benefits Offered:

The Authority’s defined benefit post employment healthcare plan, SAWPA Post Employment Healthcare Plan (SPHP), provides medical benefits to eligible retired Authority employees and spouses. SPHP is part of the Public Agency portion of the California Employers’ Retiree Trust Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees’ Retirement Law. SPHP selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through Authority resolution. CalPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued in aggregate and includes the sum of all CalPERS plans. Copies of the CalPERS CAFR may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.

Eligibility:

The Authority pays a portion of the cost of health insurance for retirees under any group plan offered by CalPERS, subject to certain restrictions as determined by the Authority.

Membership in the OPEB plan consisted of the following members as of June 30:

2014 2013 2012Active plan members 10 11 11Retirees and beneficiaries receiving benefits 4 4 4Separated plan members entitled to but not

yet receiving benefits - - -Total plan membership 14 15 15

Funding Policy:

The contribution requirements of plan members and the Authority are established and may be amended by the Commission. The Authority contributes the entire premium cost up to a predetermined cap. The 2014 calendar cap is $1,465 per month. Employees hired on, or after July 1, 2005, are not eligible to receive employer subsidized post employment medical benefits. For the year ended June 30, 2014, the Authority made a medical contribution of $113,653 which paid $49,760 in health care costs for its retirees and their covered dependents and a contribution of $63,893 to the OPEB trust.

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13. OTHER POST-EMPLOYMENT BENEFITS (OPEB) ASSET (CONTINUED):

Annual OPEB Cost and Net OPEB Asset:

The Authority is required to contribute the Annual Required Contribution (ARC) of the Employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an on-going basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

The following table shows the components of the Authority’s annual OPEB cost, the amount actually contributed to the plan, and the changes in the Authority’s net OPEB asset to the SPHP for the fiscal year ended June 30, 2014 and the two preceding years:

2014 2013 2012Annual OPEB cost (expense):

Annual required contribution (ARC) $ 63,893 $ 95,496 $ 91,837Interest on net OPEB asset (20,000) (17,000) (12,000)Adjustment to annual required contribution - 19,411 -

Total annual OPEB cost (expense) 43,893 97,907 79,837

Change in net OPEB asset:Actual contributions made (113,653) (140,948) (153,596)

Total change in net OPEB asset (69,760) (43,041) (73,759)

OPEB asset, beginning of year (282,470) (239,429) (165,670)

OPEB asset, end of year $ (352,230) $ (282,470) $ (239,429)

Three-Year Trend Information of Net OPEB Asset:

Fiscal Annual Percentage NetYear OPEB of Annual OPEB OPEB

Ended Cost Cost Contributed Asset2014 $ 43,893 100% $ (352,230)2013 97,907 100% (282,470)2012 79,837 100% (239,429)

See the Schedule of Funding Progress of the Authority’s Other Post Employment Benefits Asset in the Required Supplementary Information Section.

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Funded Status and Funding Progress:

As of July 1, 2013, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $1,296,696, and the actuarial value of assets was $727,793, resulting in an unfunded actuarial accrued liability (UAAL) of $568,903 and a funded ratio (actuarial value of assets as a percentage of the actuarial accrued liability) of 56.13%. The covered payroll (annual payroll of active employees covered by the plan) was $1,194,801 and the ratio of the UAAL to covered payroll was 47.61%.

Actuarial Methods and Assumptions:

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about rates of employee turnover, retirement, mortality, as well as economic assumptions regarding claim costs per retiree, healthcare inflation and interest rates. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the basic financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The following is a summary of the actuarial methods and assumptions used in the July 1, 2013 actuarial investment valuation:

Valuation Date July 1, 2013Actuarial Cost Method Entry Age Normal Cost MethodAmortization Method Level Percent of PayrollAmortization Period Closed 30 year amortizationRemaining Amortization Period 24 years as of the valuation date

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Actuarial Methods and Assumptions (Continued):

Actuarial Assumptions:Investment Rate of Return 7.06%Projected Salary Increases 3.25%Healthcare Trend Rate Starting at 6.7% and decreasing to

an ultimate rate of 5.0% in 7 yearsInflation Rate 3.0%

14. RISK MANAGEMENT:

The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Authority purchases commercial insurance policies from independent third parties. Settled claims have been immaterial and have not exceeded insurance coverage for the past three years.

On February 22, 1986, the Authority became self-insured with respect to its comprehensive liability coverage for toxic waste handling as allowed under California Government Code, Section 990. The Authority designates $100,000 of net position annually for self insurance. The total designated balances at June 30, 2014 and 2013 were $3,524,413 and $3,412,845, respectively. Coverage includes occurrences and incidents resulting in liability to the Authority, its Commissioners, officers, employees and agents. There are no outstanding claims pending.

15. COMMITMENTS AND CONTINGENCIES:

Grant Awards:

Grant funds received by the Authority are subject to audit by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant. Management of the Authority believes that such disallowances, if any, would not be significant.

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15. COMMITMENTS AND CONTINGENCIES (CONTINUED):

Litigation:

In the ordinary course of operations, the Authority is subject to claims and litigation from outside parties. After consultation with legal counsel, the Authority believes the ultimate outcome of such matters, if any, will not materially affect its financial condition.

Other Commitments and Contingencies:

The Authority is contractually obligated to pay a pro-rata share of capital costs associated with the maintenance of the Santa Ana Regional Interceptor (SARI) Pipeline owned by OCSD. Within the SARI pipeline, the Authority’s portion is referred to as the Inland Empire Brine Line. The percentage varies with each Reach of the SARI. There is currently a significant portion of the SARI Pipeline being considered for protection and/or relocation. The Authority could potentially be responsible for 76 percent of the related costs.

16. RESTATEMENT OF NET POSITION:

Net position as of July 1, 2013 and 2012 have been restated as follows:

Net position as previously reportedas of June 30, 2013 $ 67,377,974

Increase in net position to recordother post-employment benefit(OPEB) asset 282,470

Net position as restated July 1, 2013 $ 67,660,444

Net position as previously reportedas of June 30, 2012 $ 66,819,735

Increase in net position to recordother post-employment benefit(OPEB) asset 239,429

Net position as restated July 1, 2012 $ 67,059,164

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17. SUBSEQUENT EVENTS:

Events occurring after June 30, 2014 have been evaluated for possible adjustments to the financial statements or disclosure as of October 10, 2014, which is the date these financial statements were available to be issued.

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UnfundedActuarial Actuarial UAAL as a

Accrued Actuarial Value Accrued Funded % of

Actuarial Liability of Assets Liability Ratio Covered CoveredValuation (AAL) (AVA) (UAAL) AVA Payroll Payroll

Date (a) (b) (a) - (b) (b)/(a) (c) [(a)-(b)]/c]

07/01/2013 1,296,696$ 727,793$ 568,903$ 56.13% 1,194,801$ 47.61%07/01/2011 1,306,417 460,621 845,796 35.26% 1,177,709 71.82%07/01/2009 1,295,678 220,806 1,074,872 17.04% 1,899,493 56.59%

See independent auditors' report.

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SCHEDULE OF FUNDING PROGRESS

OTHER POST-EMPLOYMENT BENEFITS ASSET

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SUPPLEMENTARY INFORMATION

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98

CapitalProjects Internal Enterprise

ASSETS: Activities Administration ActivitiesCURRENT ASSETS:

Cash and cash equivalents 607,986$ 2,068,275$ 35,271,737$ Cash and cash equivalents - restricted 1,245,565 - - Investments - - 16,394,301 Interest receivable 1,349 1,578 277,781 Accounts receivable - 23,900 1,578,725 Accounts receivable - grants 100,000 62,569 50,000 Accounts receivable - other 14,059 194 - Notes receivable - current portion - - 606,627 Prepaid expenses and other assets - 119,232 167,533 Mitigation credits 1,930,560 - - Due from other funds - 236,908 -

TOTAL CURRENT ASSETS 3,899,519 2,512,656 54,346,704

NONCURRENT ASSETS:Notes receivable - - 2,545,790 Loan receivable - - 6,761,672 Other post-employment benefit (OPEB) asset - 352,230 - Capital assets:

Not being depreciated 677,875 445,436 320,008 Being depreciated, net of accumulated depreciation - 801,617 105,075,947

TOTAL NONCURRENT ASSETS 677,875 1,599,283 114,703,417

TOTAL ASSETS 4,577,394 4,111,939 169,050,121


Accounts payable 152,766 33,023 750,184 Accrued salaries and wages - 77,902 - Accrued interest payable 156 - 409,078 Due to other funds 236,908 - - Long-term liabilities - due within one year:

Compensated absences - 112,624 - Loans payable - - 3,649,872

TOTAL CURRENT LIABILITIES 389,830 223,549 4,809,134

NONCURRENT LIABILITIES:Unearned revenue - - 80,249,749 Long-term liabilities - due in more than one year:

Compensated absences - 262,788 - Loans payable - - 25,208,436

TOTAL NONCURRENT LIABILITIES - 262,788 105,458,185

TOTAL LIABILITIES 389,830 486,337 110,267,319

NET POSITION (AS RESTATED):Net investment in capital assets 677,875 1,247,053 78,531,640 Restricted for:

SRF Reach IVA & IVB reserve requirement - - 1,050,000 Mitigation 3,117,861 - -

Unrestricted 391,828 2,378,549 (20,798,838)

TOTAL NET POSITION 4,187,564$ 3,625,602$ 58,782,802$


66


COMBINING SCHEDULE OF NET POSITION

ENTERPRISE FUNDS


June 30, 2014

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2014 2013

37,947,998$ 37,486,042$ 1,245,565 1,135,039

16,394,301 16,428,710 280,708 315,685

1,602,625 1,676,868 212,569 1,337,292

14,253 1,012,245 606,627 639,819 286,765 289,013

1,930,560 2,046,560 236,908 272,733

60,758,879 62,640,006

2,545,790 3,084,888 6,761,672 8,527,858

352,230 282,470

1,443,319 977,213 105,877,564 110,371,840 116,980,575 123,244,269

177,739,454 185,884,275

935,973 1,808,376 77,902 73,758

409,234 445,534 236,908 272,733

112,624 98,830 3,649,872 3,639,412 5,422,513 6,338,643

80,249,749 82,759,903

262,788 230,602 25,208,436 28,894,683

105,720,973 111,885,188

111,143,486 118,223,831

80,456,568 81,274,020

1,050,000 1,050,000 3,117,861 3,182,102

(18,028,461) (17,845,678)

66,595,968$ 67,660,444$

Totals

67

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CapitalProjects Internal Enterprise

Activities Administration ActivitiesOPERATING REVENUES:

Wastewater treatment and disposal -$ -$ 8,575,085$

Wastewater treatment and disposal - capacity rights - - 2,510,154

Other 157,236 955 -

TOTAL OPERATING REVENUES 157,236 955 11,085,239

OPERATING EXPENSES:

Wastewater treatment and disposal - - 6,864,435

General and administrative and overhead - 487,308 -

Studies and planning costs 2,636,556 - -

TOTAL OPERATING EXPENSES 2,636,556 487,308 6,864,435

OPERATING INCOME (LOSS) BEFORE

DEPRECIATION AND AMORTIZATION (2,479,320) (486,353) 4,220,804

DEPRECIATION - (62,842) (3,075,016)

AMORTIZATION - - (1,400,918)

OPERATING LOSS (2,479,320) (549,195) (255,130)


Member contributions 847,752 923,835 -

Intergovernmental 705,143 118,776 19,364

Investment earnings 8,654 8,751 440,462

Gain on sale of mitigation credits 13,021 - -

Interest expense - - (866,411)

Grant program expenses - - -

Other - - (178)

TOTAL NONOPERATING REVENUES (EXPENSES) 1,574,570 1,051,362 (406,763)

INCOME (LOSS) BEFORE TRANSFERS (904,750) 502,167 (661,893)

TRANSFERS 892,155 - (892,155)

CHANGES IN NET POSITION (12,595) 502,167 (1,554,048)

NET POSITION - BEGINNING OF YEAR (AS RESTATED) 4,200,159 3,123,435 60,336,850

NET POSITION - END OF YEAR 4,187,564$ 3,625,602$ 58,782,802$


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COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

ENTERPRISE FUNDS



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2014 2013

8,575,085$ 9,170,287$

2,510,154 2,510,154

158,191 220,420

11,243,430 11,900,861

6,864,435 6,686,530

487,308 588,883

2,636,556 2,501,681

9,988,299 9,777,094

1,255,131 2,123,767

(3,137,858) (3,134,661)

(1,400,918) (1,400,918)

(3,283,645) (2,411,812)

1,771,587 1,829,845

843,283 1,432,832

457,867 343,591

13,021 -

(866,411) (558,421)

- (23,470)

(178) (11,285)

2,219,169 3,013,092

(1,064,476) 601,280

- -

(1,064,476) 601,280

67,660,444 67,059,164

66,595,968$ 67,660,444$

69

Totals

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ImportedBrine Line WaterProtection Basin Recharge

ASSETS: Project Planning WorkgroupCURRENT ASSETS:

Cash and cash equivalents -$ 59,508$ 35,606$

Cash and cash equivalents - restricted - - -

Interest receivable - 86 24

Accounts receivable - - -

Accounts receivable - grants - - -

Accounts receivable - other - - -

Mitigation credits - - -

TOTAL CURRENT ASSETS - 59,594 35,630

NONCURRENT ASSETS:

Capital assets:

Not being depreciated - - -

TOTAL NONCURRENT ASSETS - - -

TOTAL ASSETS - 59,594 35,630


Accounts payable 24,906 311 -

Accrued interest payable - - -

Due to other funds - - -

TOTAL CURRENT LIABILITIES 24,906 311 -

TOTAL LIABILITIES 24,906 311 -

NET POSITION:

Net investment in capital assets - - -

Restricted for mitigation - - -

Unrestricted (24,906) 59,283 35,630

TOTAL NET POSITION (24,906)$ 59,283$ 35,630$


70



CAPITAL PROJECTS ACTIVITIES

June 30, 2014


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Basin Santa Ana ArundoWatershed Monitoring River Chino Storm WQ Management

Management Program Fish TMDL Standards & Habitat

Plan Task Force Conservation Task Force Task Force Restoration

-$ 108,815$ 35,759$ 155,579$ 55,676$ -$

- - - - - 1,245,565

- 123 31 131 38 807

- - - - - -

100,000 - - - - -

- - - - - -

- - - - - 1,930,560

100,000 108,938 35,790 155,710 55,714 3,176,932

- - - - - -

- - - - - -

100,000 108,938 35,790 155,710 55,714 3,176,932

1,153 7,615 - 20,942 - 59,071

148 - - - - -

224,275 - - - - -

225,576 7,615 - 20,942 - 59,071

225,576 7,615 - 20,942 - 59,071

- - - - - -

- - - - - 3,117,861

(125,576) 101,323 35,790 134,768 55,714 -

(125,576)$ 101,323$ 35,790$ 134,768$ 55,714$ 3,117,861$

(Continued)

71

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Emerging UCI LakeConstituents Research Elsinore

ASSETS: Task Force Grant ManagementCURRENT ASSETS:

Cash and cash equivalents 157,043$ -$ -$

Cash and cash equivalents - restricted - - -

Interest receivable 109 - -

Accounts receivable - - -

Accounts receivable - grants - - -

Accounts receivable - other - - 14,059

Mitigation credits - - -

TOTAL CURRENT ASSETS 157,152 - 14,059

NONCURRENT ASSETS:

Capital assets:

Not being depreciated - - -

TOTAL NONCURRENT ASSETS - - -

TOTAL ASSETS 157,152 - 14,059


Accounts payable 2,050 - 56

Accrued interest payable - - 8

Due to other funds - - 12,633

TOTAL CURRENT LIABILITIES 2,050 - 12,697

TOTAL LIABILITIES 2,050 - 12,697

NET POSITION:

Net investment in capital assets - - -

Restricted for mitigation - - -

Unrestricted 155,102 - 1,362

TOTAL NET POSITION 155,102$ -$ 1,362$


72



CAPITAL PROJECTS ACTIVITIES (CONTINUED)

June 30, 2014


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Reach V

CapitalProjects 2014 2013

-$ 607,986$ 840,606$

- 1,245,565 1,135,039

- 1,349 919

- - 13,285

- 100,000 226,257

- 14,059 31,523

- 1,930,560 2,046,560

- 3,899,519 4,294,189

677,875 677,875 211,769

677,875 677,875 211,769

677,875 4,577,394 4,505,958

36,662 152,766 32,922

- 156 144

- 236,908 272,733

36,662 389,830 305,799

36,662 389,830 305,799

677,875 677,875 211,769

- 3,117,861 3,182,102

(36,662) 391,828 806,288

641,213$ 4,187,564$ 4,200,159$

73

Totals

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ImportedBrine Line WaterProtection Basin Recharge

Project Planning WorkgroupOPERATING REVENUES:

Other -$ -$ -$

TOTAL OPERATING REVENUES - - -

OPERATING EXPENSES:

Studies and planning costs 487,113 374,155 5,737

TOTAL OPERATING EXPENSES 487,113 374,155 5,737

OPERATING LOSS (487,113) (374,155) (5,737)


Member contributions - 353,000 -

Intergovernmental - - -

Investment earnings - 804 140

Gain on sale of mitigation credits - - -

TOTAL NONOPERATING REVENUES (EXPENSES) - 353,804 140

INCOME (LOSS) BEFORE TRANSFERS (487,113) (20,351) (5,597)

TRANSFERS 462,238 - -

CHANGES IN NET POSITION (24,875) (20,351) (5,597)

NET POSITION - BEGINNING OF YEAR (31) 79,634 41,227

NET POSITION - END OF YEAR (24,906)$ 59,283$ 35,630$


74



CAPITAL PROJECT ACTIVITIES



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Basin Santa Ana ArundoWatershed Monitoring River Chino Storm WQ Management

Management Program Fish TMDL Standards & Habitat

Plan Task Force Conservation Task Force Task Force Restoration

-$ -$ -$ 350$ -$ -$

- - - 350 - -

567,550 433,367 65,618 259,330 126,483 81,717

567,550 433,367 65,618 259,330 126,483 81,717

(567,550) (433,367) (65,618) (258,980) (126,483) (81,717)

305,000 45,456 25,000 - 50,000 -

164,467 185,567 8,000 300,629 - -

- 1,176 247 800 402 4,455

- - - - - 13,021

469,467 232,199 33,247 301,429 50,402 17,476

(98,083) (201,168) (32,371) 42,449 (76,081) (64,241)

- - - - - -

(98,083) (201,168) (32,371) 42,449 (76,081) (64,241)

(27,493) 302,491 68,161 92,319 131,795 3,182,102

(125,576)$ 101,323$ 35,790$ 134,768$ 55,714$ 3,117,861$

(Continued)

75

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Emerging UCI LakeConstituents Research ElsinoreTask Force Grant Management

OPERATING REVENUES:

Other -$ -$ 156,886$

TOTAL OPERATING REVENUES - - 156,886

OPERATING EXPENSES:

Studies and planning costs 68,610 - 166,876

TOTAL OPERATING EXPENSES 68,610 - 166,876

OPERATING LOSS (68,610) - (9,990)


Member contributions 59,296 - 10,000

Intergovernmental 46,480 - -

Investment earnings 630 - -

Gain on disposal of capital assets - - -

TOTAL NONOPERATING REVENUES (EXPENSES) 106,406 - 10,000

INCOME (LOSS) BEFORE TRANSFERS 37,796 - 10

TRANSFERS - 473 -

CHANGES IN NET POSITION 37,796 473 10

NET POSITION - BEGINNING OF YEAR 117,306 (473) 1,352

NET POSITION - END OF YEAR 155,102$ -$ 1,362$


76



CAPITAL PROJECT ACTIVITIES (CONTINUED)



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Reach V

CapitalProjects 2014 2013

-$ 157,236$ 220,119$

- 157,236 220,119

- 2,636,556 2,501,681

- 2,636,556 2,501,681

- (2,479,320) (2,281,562)

- 847,752 881,675

- 705,143 1,274,255

- 8,654 7,607

- 13,021 -

- 1,574,570 2,163,537

- (904,750) (118,025)

429,444 892,155 (3,229,066)

429,444 (12,595) (3,347,091)

211,769 4,200,159 7,547,250

641,213$ 4,187,564$ 4,200,159$

Totals

77

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State Water

Resources Brine Line

ASSETS: Prop 13 Enterprise 2014 2013CURRENT ASSETS:

Cash and cash equivalents 44,760$ 35,226,977$ 35,271,737$ 35,085,280$

Investments - 16,394,301 16,394,301 16,428,710

Interest receivable - 277,781 277,781 313,909

Accounts receivable - 1,578,725 1,578,725 1,663,583

Accounts receivable - grants - 50,000 50,000 1,047,538

Accounts receivable - other - - - 980,549

Notes receivable - current portion - 606,627 606,627 639,819

Prepaid expenses and other assets - 167,533 167,533 202,838

TOTAL CURRENT ASSETS 44,760 54,301,944 54,346,704 56,362,226

NONCURRENT ASSETS:

Notes receivable - 2,545,790 2,545,790 3,084,888

Loan receivable - 6,761,672 6,761,672 8,527,858

Capital assets:

Not being depreciated - 320,008 320,008 320,008

Being depreciated, net of

accumulated depreciation - 105,075,947 105,075,947 109,537,948

TOTAL NONCURRENT ASSETS - 114,703,417 114,703,417 121,470,702

TOTAL ASSETS 44,760 169,005,361 169,050,121 177,832,928


Accounts payable 44,760 705,424 750,184 1,756,690

Accrued interest payable - 409,078 409,078 445,390

Long-term liabilities - due within one year:

Loans payable - 3,649,872 3,649,872 3,639,412

TOTAL CURRENT LIABILITIES 44,760 4,764,374 4,809,134 5,841,492


Unearned revenue - 80,249,749 80,249,749 82,759,903

Long-term liabilities - due in more than one year:

Loans payable - 25,208,436 25,208,436 28,894,683

TOTAL NONCURRENT LIABILITIES - 105,458,185 105,458,185 111,654,586

TOTAL LIABILITIES 44,760 110,222,559 110,267,319 117,496,078

NET POSITION:

Net investment in capital assets - 78,531,640 78,531,640 79,782,923

Restricted for

SRF Reach IVA & IVB reserve requirement - 1,050,000 1,050,000 1,050,000

Unrestricted - (20,798,838) (20,798,838) (20,496,073)

TOTAL NET POSITION -$ 58,782,802$ 58,782,802$ 60,336,850$


78

Totals



ENTERPRISE ACTIVITIES

June 30, 2014


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State Water

Resources Brine Line

Prop 13 Enterprise 2014 2013OPERATING REVENUES:

Wastewater treatment and disposal -$ 8,575,085$ 8,575,085$ 9,170,287$

Wastewater treatment and disposal - capacity rights - 2,510,154 2,510,154 2,510,154

TOTAL OPERATING REVENUES - 11,085,239 11,085,239 11,680,441

OPERATING EXPENSES:

Wastewater treatment and disposal - 6,864,435 6,864,435 6,686,530

TOTAL OPERATING EXPENSES - 6,864,435 6,864,435 6,686,530

OPERATING INCOME BEFORE

DEPRECIATION AND AMORTIZATION - 4,220,804 4,220,804 4,993,911

DEPRECIATION - (3,075,016) (3,075,016) (3,072,436)

AMORTIZATION - (1,400,918) (1,400,918) (1,400,918)

OPERATING INCOME (LOSS) - (255,130) (255,130) 520,557


Intergovernmental - 19,364 19,364 86,619

Investment earnings - 440,462 440,462 328,761

Interest expense - (866,411) (866,411) (558,421)

Grant program expenses - - - (23,470)

Other (178) - (178) (11,285)

TOTAL NONOPERATING

REVENUES (EXPENSES) (178) (406,585) (406,763) (177,796)

INCOME (LOSS) BEFORE TRANSFERS (178) (661,715) (661,893) 342,761

TRANSFERS 21,668 (913,823) (892,155) 3,229,066

CHANGES IN NET POSITION 21,490 (1,575,538) (1,554,048) 3,571,827

NET POSITION - BEGINNING OF YEAR (21,490) 60,358,340 60,336,850 56,765,023

NET POSITION - END OF YEAR -$ 58,782,802$ 58,782,802$ 60,336,850$


79

Totals



ENTERPRISE ACTIVITIES



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IntegratedRegional

Integrated ManagementRegional Program

Legal Management Prop 84

Defense Program Capital

Fund Prop 50 Projects 2014 2013

CURRENT ASSETS:

Cash and cash equivalents 443,243$ -$ -$ 443,243$ 442,137$

Accounts receivable - - - - 2,864,482

Accounts receivable - grants - - 1,224,551 1,224,551 1,547,469

TOTAL ASSETS 443,243$ -$ 1,224,551$ 1,667,794$ 4,854,088$


Accounts payable -$ -$ 1,224,551$ 1,224,551$ 4,411,951$

TOTAL CURRENT LIABILITIES - - 1,224,551 1,224,551 4,411,951


Deposits - legal defense 443,243 - - 443,243 442,137

TOTAL NONCURRENT LIABILITIES 443,243 - - 443,243 442,137

TOTAL LIABILITIES 443,243$ -$ 1,224,551$ 1,667,794$ 4,854,088$


80

Totals

LIABILITIES

ASSETS


COMBINING SCHEDULE OF FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDS

June 30, 2014


80113

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Balance BalanceJuly 1, 2013 Additions Deletions June 30, 2014

CURRENT ASSETS:Cash and cash equivalents 442,137$ 1,106$ -$ 443,243$

NONCURRENT LIABILITIES:Deposits - legal defense 442,137$ 1,106$ -$ 443,243$

MANAGEMENT PROGRAM - PROP 50

CURRENT ASSETS:Accounts receivable 2,864,482$ 4,673,895$ 7,538,377$ -$

CURRENT LIABILITIES:Accounts payable 2,864,482$ 4,832,281$ 7,696,763$ -$

CURRENT ASSETS:Accounts receivable - grants 1,547,469$ 2,359,002$ 2,681,920$ 1,224,551$

CURRENT LIABILITIES:Accounts payable 1,547,469$ 2,359,002$ 2,681,920$ 1,224,551$

CURRENT ASSETS:

Cash and cash equivalents 442,137$ 1,106$ -$ 443,243$

Accounts receivable 2,864,482 4,673,895 7,538,377 -Accounts receivable - grants 1,547,469 2,359,002 2,681,920 1,224,551

TOTAL ASSETS 4,854,088$ 7,034,003$ 10,220,297$ 1,667,794$


Accounts payable 4,411,951$ 7,191,283$ 10,378,683$ 1,224,551$


Deposits - legal defense 442,137 1,106 - 443,243

TOTAL LIABILITIES 4,854,088$ 7,192,389$ 10,378,683$ 1,667,794$



COMBINING SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDS


81

LEGAL DEFENSE FUND

INTEGRATED REGIONAL WATER

PROP 84 CAPITAL PROJECTS

TOTAL AGENCY FUNDS

INTEGRATED REGIONAL WATER

MANAGEMENT PROGRAM -

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Statistical Section

115

Statistical Section

This part of the Authority’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Authority’s overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the Authority’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Authority’s ability to generate revenues. Debt Capacity These schedules present information to help the reader assess the affordability of the Authority’s current levels of outstanding debt and the Authority’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Authority’s financial activities take place and to help make comparisons over time and with other agencies. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Authority’s financial report relates to the service the Authority provides.

116

Table I – Net Position by Component Last Ten Fiscal Years

2014 2013 2012 2011 2010 2009 2008 2007 2006

2005

Net Investment in Capital Assets $80,456,568 $81,274,020 $80,560,654 $81,597,589 $81,698,370 $81,573,415 $81,560,047 $76,699,660 $67,748,043 $87,540,938

Restricted 4,167,861 4,232,102 4,263,626 3,347,218 3,597,747 3,893,268 3,938,199 4,009,917 4,185,373 4,104,683

Unrestricted (18,028,461) (17,845,678) (17,765,116) (19,325,941) (19,535,270) (22,350,886) (26,108,445) (25,572,344) (18,700,023) (19,709,222)

Total Net Position $66,595,968 $67,660,444 $67,059,164 $65,618,866 $65,760,847 $63,115,797 $59,389,801 $55,137,233 $53,233,393 $71,936,399

Source: Santa Ana Watershed Project Authority

83117

Table II – Changes in Net Position Last Ten Fiscal Years

Fiscal Year

Operating Revenue (1)

Operating Expense (2)

Operating Income/(Loss)

Total Non- Operating Revenue/ (Expense)

Income/(Loss) Before Capital Contributions

Capital Contributions

Special Items (3)

Change in Net Position

2014 $11,243,430 $14,527,075 ($3,283,645) $2,219,169 ($1,064,476) 0 0 ($1,064,476) 2013 11,900,861 14,312,673 (2,411,812) 3,013,092 601,280 0 0 601,280 2012 12,739,489 14,859,529 (2,120,040) 3,394,668 1,274,628 0 0 1,274,628 2011 13,743,782 16,662,206 (2,918,424) 2,776,443 (141,981) 0 0 (141,981) 2010 15,189,120 16,709,227 (1,520,107) 5,119,045 3,598,938 0 0 $3,598,938 2009 12,420,640 15,011,847 (2,591,207) 6,317,202 3,725,995 0 0 3,725,995 2008 11,914,294 16,381,550 (4,467,256) 8,719,824 4,252,568 0 0 4,252,568 2007 11,246,541 15,759,787 (4,513,246) 6,417,086 1,903,840 0 0 1,903,840 2006 11,249,275 15,890,296 (4,641,021) 3,608,860 (1,032,161) 5,706 (10,149,493) (11,175,948) 2005 11,440,593 15,461,863 (4,021,270) 3,610,181 (411,089) 168,538 0 (242,551)

(1) See Table III for details of revenues. (2) See Table IV for details of expenses. (3) Decrease due to Special Items of: $10,149,493 related to the Arlington Desalter Transfer.


84118

Table III – Revenues by Source (Excluding Capital Contributions and Special Items)

Last Ten Fiscal Years

Operating Revenues Non-Operating Revenues

Fiscal Year

WWT & Disposal

WWT & Disposal Capacity

Rights

Desalter Water Sales

Program Admin

Other Opera-

ting

Total Operating Revenue

Member Contri-butions

Inter Government

Investment Income

Gain on

Disposal of Asset

Other Non- Operating

Income

Total Non- Operating

Income

Combined Revenue

2014 $8,575,085 $2,510,154 $0 $0 $158,191 $11,243,430 $1,771,587 $1,829,845 $457,867 $13,021 $0 $3,085,758 $14,329,188

2013 9,170,287 2,510,154 0 0 220,420 11,900,861 1,829,845 1,432,832 343,591 0 0 3,606,268 15,507,129

2012 10,053,123 2,481,109 0 0 205,257 12,739,489 1,697,194 2,563,956 1,058,984 2,223 0 5,322,357 18,061,846

2011 10,989,257 2,467,971 0 268,253 18,301 13,743,782 1,646,170 1,542,723 1,178,639 0 42,000 4,409,532 18,153,314

2010 12,391,354 2,458,418 0 256,486 82,862 15,189,120 1,499,558 2,514,206 2,007,183 1,616 0 6,022,563 21,211,683

2009 9,738,141 2,458,750 0 223,749 0 12,420,640 1,723,395 2,638,131 2,963,353 0 1,214 7,326,093 19,746,733

2008 9,247,855 2,438,152 0 227,787 500 11,914,294 2,065,577 3,031,370 4,683,608 54,612 63 9,835,230 21,749,524

2007 8,658,339 2,262,470 0 226,522 99,210 11,246,541 3,050,161 1,413,877 3,953,946 26,132 135,849 8,579,965 19,826,506

2006 7,016,128 1,873,085 1,924,821 306,129 129,112 11,249,275 2,099,150 13,125,266 1,381,304 49,318 16 16,655,054 27,904,329

2005 3,983,183 1,781,877 3,263,916 1,086,084 1,325,533 11,440,593 1,746,850 118,395,976 3,525,303 57,765 1,158 123,727,052 135,167,645


85119

Table IV – Expenses by Function Last Ten Fiscal Years

Operating Expenses

Fiscal Year

WWT & Disposal

Desalters

General & Admin

Studies & Planning

Costs Depreciation

Amortization of WWT Rights

Total Operating Expenses

Total Non-Operating Expenses

Combined Expenses

2014 $6,864,435 $0 $487,308 $2,636,556 $3,137,858 $1,400,918 $14,527,075 $866,589 $15,393,664 2013 6,686,530 0 588,883 2,501,681 3,134,661 1,400,918 14,312,673 593,176 14,905,849 2012 7,356,155 0 1,125,143 2,244,658 2,732,655 1,400,918 14,859,529 1,927,689 16,787,218 2011 7,491,739 0 838,929 4,287,122 2,643,498 1,400,918 16,662,206 1,633,089 18,295,295 2010 9,803,154 0 850,538 1,998,300 2,656,317 1,400,918 16,709,227 903,518 17,612,745 2009 6,767,974 0 1,038,758 3,148,432 2,655,765 1,400,918 15,011,847 1,008,891 16,020,738 2008 6,886,304 0 741,243 4,729,137 2,656,488 1,368,378 16,381,550 1,115,406 17,496,956 2007 7,395,547 0 823,114 3,646,697 2,660,758 1,233,671 15,759,787 2,162,879 17,922,666 2006 6,238,654 1,155,096 1,052,332 3,409,278 3,063,589 971,347 15,890,296 13,046,194 28,936,490 2005 5,009,465 2,403,447 1,260,370 2,038,566 3,778,668 971,347 15,461,863 120,116,871 135,578,734


86120

ChartI‐CombinedExpensesandRevenuesLast Ten Fiscal Years

Source:SantaAnaWatershedProjectAuthority

‐

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

In M

illions

CombinedExpenses

CombinedRevenues

87121

Table V - Wastewater Discharge by Type Last Ten Fiscal Years

Discharge Type 2014 2013 2012 2011 2010 2009 2008 2007

2006

2005

Industrial 167.2638 171.2630 249.2381 245.6435 203.3820 203.4214 331.7357 629.5509 732.8943 785.4778

Domestic 817.2502 854.2526 1,027.1307 1,015.4773 908.3414 852.0116 837.9343 1,475.4890 1,275.2165 1,041.5085

Dairy 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 7.5359 27.2099

Power Plant 220.6970 267.9388 348.7255 334.4011 268.2640 222.9578 104.4273 93.3591 91.5996 1.4808

Water Supply/Desalter 2,698.2170 2,728.7335 2,657.6589 2,702.2033 2,877.3705 2,923.6592 2,508.3150 2,347.1633 1,870.6342 1,544.6792

Temp/Emergency 10.6266 7.9366 5.0106 20.1418 18.1715 7.3531 0.0000 1.5201 5.2351 0.8393

Truck Discharge 23.3557 30.6147 42.3407 43.2777 53.3668 62.5716 64.0861 39.8682 40.6802 39.9424

Total 3,937.4103 4,060.7392 4,330.1045 4,361.1447 4,328.8962 4,271.9747 3,846.4984 4,586.9505 4,023.7958 3,441.1379


88122

Table VI - Summary of Wastewater Treatment Rates Last Ten Fiscal Years

Fiscal Year

Flow per

MGD*

BOD Charge (1,000

lbs)

TSS Charge (1,000

lbs)

Minimum Flow

Charge

Monthly Fixed

Pipeline Charge

Monthly Fixed

Treatment Charge

Truck – Non-Brine

(per gallon)

Truck – Tier 1 (per

gallon)


gallon)


gallon)

Truck – Brine (per

gallon) 2014 $736.00 $266.00 $395.00 $150.00 $4,870.00 $9,875.00 (a) $0.015 $0.031 (b) $0.010 2013 794.00 253.00 376.00 150.00 4,083.00 8,749.00 (a) 0.015 0.030 (c) 0.010 2012 830.00 225.00 335.00 150.00 3,430.00 7,868.00 (a) 0.014 0.029 (d) 0.010 2011 891.00 312.00 462.00 150.00 2,710.00 6,775.00 (a) 0.015 0.032 (e) 0.010 2010 850.00 283.00 420.00 150.00 2,581.00 6,452.00 0.029 0.000 0.000 0.000 0.010 2009 792.00 257.00 381.00 150.00 2,417.00 6,044.00 0.028 0.000 0.000 0.000 0.007 2008 754.00 233.00 346.00 150.00 2,265.00 5,663.00 0.026 0.000 0.000 0.000 0.007 2007 589.00 200.00 312.00 150.00 2,124.00 5,310.00 0.023 0.000 0.000 0.000 0.004 2006 589.00 199.00 310.00 0.00 0.00 8,045.00 0.0302 0.000 0.000 0.000 0.0302 2005 806.00 45.00 55.00 0.00 0.00 3,523.00 0.006 0.000 0.000 0.000 0.006

* MGD – million gallons per day

(a) Non-brine truck rate was divided into three tiers based on BOD and TSS Concentrations. Tier 1 = 100 to 999 mg/l, Tier 2 = 1,000 to 2,499 mg/l, and Tier 3 = 2,500 mg/l and higher.

(b) FY 2014 – Tier 3 dischargers will be charged based on actual concentrations of the waste discharged using the following components: $0.0026/gallon, $0.658/pound of BOD, and $0.636/pound of TSS.

(c) FY 2013 - Tier 3 dischargers will be charged based on the actual concentration of the waste discharged using the following components: $0.0026/gallon, $0.645/pound of BOD, and $0.617/pound of TSS.

(d) FY 2012 - Tier 3 dischargers will be charged based on the actual concentration of the waste discharged using the following components: $0.0026/gallon, $0.617/pound of BOD, and $0.576/pound of TSS.

(e) FY 2011 - Tier 3 dischargers will be charged based on the actual concentration of the waste discharged using the following components: $0.0025/gallon, $0.672/pound of BOD, and $0.683/pound of TSS.


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Table VII - Principal Sewer Customers Current Fiscal Year and Nine Years Prior

Fiscal Year 2013-14

Customer Name Discharge in MG*

Percentage of Total

Discharge Chino Desalter I 700.0474 17.78% Temescal Desalter 593.7199 15.08% Chino Desalter II 454.7759 11.55% Arlington Desalter 411.6732 10.46% Perris Desalter 309.5459 7.86% JCSD – Etiwanda ** 286.3833 7.27% Menifee Desalter 201.9270 5.13% Mountainview Power Plant 155.0744 3.94% Chino Institute for Women 154.0242 3.91% California Rehabilitation Center 150.3972 3.82%

Total Principal Customers 3,417.5684 86.80% Other Customers 519.8419 13.20%

Total Discharge 3,937.4103 100.00%

Fiscal Year 2004-05

Customer Name Discharge in MG*

Percentage of Total

Discharge Chino Desalter I 621.2239 18.05% Golden Cheese 462.9977 13.45% Temescal Desalter 457.8348 13.30% Arlington Desalter 391.0716 11.36% California Rehabilitation Center 340.2664 9.89% Inland Empire Utilities Agency 217.4025 6.32% JCSD – Etiwanda ** 148.6231 4.32% JCSD – Chandler ** 124.6787 3.62% Chino Institute for Women 109.6522 3.19% JCSD – Eastvale ** 93.9035 2.73%

Total Principal Customers 2,967.6544 86.24% Other Customers 473.4835 13.76%

Total Discharge 3,441.1379 100.00% * MG – million gallons ** Jurupa Community Services District (JCSD) connections. Source: Santa Ana Watershed Project Authority

90124

Table VIII - Debt Coverage Ratio Last Ten Fiscal Years

Fiscal Year

Combined Expenses

Debt Service Requirements

Debt to

Expense Ratio

SRF Loans *

Member Loans **

Total Debt

2014 $15,393,644 $4,222,260 $356,250 $4,578,510 29.7% 2013 14,948,890 4,179,190 356,250 4,535,440 30.3% 2012 16,860,977 4,179,191 356,250 4,535,441 26.9% 2011 18,295,295 4,179,191 356,250 4,535,441 24.8% 2010 17,612,745 4,179,192 356,250 4,535,442 25.8% 2009 16,020,738 4,179,191 356,250 4,535,441 28.3% 2008 17,496,956 4,179,191 356,250 4,535,441 25.9% 2007 17,922,666 4,179,191 356,250 4,535,441 25.3% 2006 28,936,490 4,179,191 356,250 4,535,441 15.7% 2005 135,578,734 4,179,191 356,250 4,535,441 3.3%

The Authority does not receive property tax. All revenues are collected through rates and fees or agency contributions. The Authority does not have any outstanding Revenue Bonds. The only debt of the Authority is SRF and member agency loans. Treasury strips were purchased to fully cover all future debt service payments. The Treasury strips mature as debt service payments come due. No operating revenues are used to make debt service payments. Notes: * State Revolving Fund (SRF) Loans for construction of the Brine Line. ** Repurchase of Pipeline Capacity from Orange County Water District. Source: Santa Ana Watershed Project Authority

91125

Table IX - Debt Service Payment Schedule Fiscal Years 2014 - 2033

Fiscal Year Interest Principal Total

Payment Remaining Principal

2014 $917,806 $3,660,704 $4,578,510 $29,125,074 2015 827,925 3,633,884 4,461,810 25,491,190 2016 716,452 3,338,888 4,055,340 22,152,302 2017 615,366 2,445,358 3,060,725 19,706,943 2018 539,727 2,520,997 3,060,725 17,185,946 2019 461,459 2,065,342 2,526,801 15,120,604 2020 395,403 1,775,147 2,170,551 13,345,456 2021 348,294 1,822,257 2,170,551 11,523,199 2022 299,932 1,643,304 1,943,236 9,879,895 2023 256,877 787,396 1,044,273 9,092,499 2024 236,405 807,868 1,044,273 8,284,631 2025 215,400 828,873 1,044,273 7,455,758 2026 193,850 850,424 1,044,273 6,605,335 2027 171,739 872,535 1,044,273 5,732,800 2028 149,052 895,220 1,044,273 4,837,580 2029 125,777 918,496 1,044,273 3,919,084 2030 101,896 942,377 1,044,273 2,976,707 2031 77,394 966,879 1,044,273 2,009,828 2032 52,256 992,018 1,044,273 1,017,810 2033 26,463 1,017,810 1,044,273 0


92126

Chart II - Debt Service Payment Schedule Fiscal Years 2014 – 2033


93127

Chart III – Capital Spending Last Ten Fiscal Years

Chart IV – Total Debt to Assets Last Ten Fiscal Years

$-

$50

$100

$150

$200

$250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Millions

DebtAssets


94128

Table X - Demographic and Economic Statistics Last Ten Calendar Years

Fiscal Year Population County (3)

Personal Income (1)

Per Capita Personal Income County

Unemployment

Rate (June)4 County State

2014 2,279,967 $5,033,383,304 $34,102 (2) 8.4% 7.4% 2013 2,255,059 4,892,318,231 33,163 (5) 9.2 8.5 2012 2,227,577 4,740,901,560 32,520 (5) 11.8 10.7 2011 2,217,778 4,562,732,423 32,008 (5) 13.3 11.8 2010 2,179,692 4,375,318,812 29,222 (5) 14.5 12.2 2009 2,107,653 4,308,080,000 29,748 (5) 13.7 11.6 2008 2,088,322 4,149,660,000 30,894 (5) 8.4 6.9 2007 2,031,625 3,975,820,000 29,560 (5) 5.7 5.3 2006 1,966,607 3,734,900,000 28,730 (5) 5.1 4.9 2005 1,885,627 3,155,771,600 26,342 (5) 5.2 5.4

(1) Projected person income based on Riverside County Per Capital Personal Income. (2) Projected based on a 10 year average. (3) Source: January Revised Estimates, State Department of Finance (4) Source: CA Employment Development Department and US Dept. of Labor. County data as of June 2014. (5) Source: County or Riverside Comprehensive Annual Financial Report

Table XI - Principal Employers Fiscal Year Ended June 30, 2014

Employer No. of Employees

Percentage of Total Labor

Force County of Riverside 20,808 2.43% March Air Reserve Base 8,500 0.99% Stater Brothers Markets 6,900 0.81% University of California, Riverside 5,514 0.64% Kaiser Permanente Riverside Medical Center 5,270 0.62%

Pechanga Resort & Casino 4,500 0.50% Corona-Norco Unified School District 4,300 0.50% Wal-Mart 4,068 0.48% Riverside Unified School District 4,000 0.47% Hemet Unified School District 3,572 0.42% Total 67,432 7.86%

Sources: County of Riverside Economic Development Agency

95129

Table XII - Number of Employees Last Ten Fiscal Years

Department 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Executive Management 2 2 2 2 1 1 1 1 1 1

Administrative Services 5 5 5 5 4 4 5 5 4 4

Engineering & Operations 8 6 5 4 3 3 3 2 2 4

Finance 3 3 3 3 3 3 3 3 3 4

Water Resources & Planning 3 3 3 3 3 3 3 3 3 3

Information Systems & Technology 3 3 3 3 3 3 3 3 3 3

Total 24 22 21 20 17 17 18 17 16 19

Notes: All managers are included with their divisions. Temporary and Interns are not included.

Chart V – Total Employees Last Ten Fiscal Years


96130

Table XIII - Operating and Capital Indicators Last Ten Fiscal Years

2014 2013 2012 2011 2010 2009 2008 2007

2006

2005

Total Meter Connections 50 50 50 45 46 42 36 38 33 40

Number of Air Release Valves 65 65 65 62 62 62 62 62 62 62

Miles of Sewer Lines 73 73 73 73 73 73 73 73 73 73

Total Flows for Fiscal Years (MG) 3,441.1379 4,060.7392 4,330.1045 4361.1447 4328.8962 4271.9747 3846.498 4586.951 4023.796 3441.138

Owned Treatment Capacity (MGs) 17 17 17 17 17 17 17 16 13 13

Miscellaneous Statistics Year of Formation: 1972 Governing Body: 5-Member Board of Commissioners (1 from each Member Agency elected Board of Directors) Form of Government: Joint Powers Authority Staff: 24 full-time equivalent employees Authority: Section 6500 et. Seq. Government Code Service: Waste Disposal, Watershed Planning, Task Force Facilitation Service Area (square miles): 2,650 Total Population Served: Approximately 6.0 million Source: Santa Ana Watershed Project Authority

97131


132


11615 Sterling Avenue ● Riverside ● California ● 92503www.sawpa.org ●(951)354‐4220

133



- 1 -


We have audited the financial statements of Santa Ana Watershed Project Authority (the Authority) for the year ended June 30, 2014. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our planning matters letter to you dated July 11, 2014. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings

Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Authority are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year ended June 30, 2014. We noted no transactions entered into by the Authority during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.

The most sensitive estimates affecting the Authority’s financial statements were:

a. Management’s estimate of the fair market value of investments which is based on market values provided by outside sources.

b. Management’s estimate to recognize revenue for capacity right purchases over the life of the Authority’s contract with the County of fifty years.

c. Management’s estimate useful lives of capital assets for depreciation purposes are based on industry standards.

d. The annual required contribution for the Authority’s public defined benefit plan with CalPERS is based on an actuarial valuation.

e. The funded status and funding progress of postemployment benefits other than the public defined benefit plans with CalPERS is based on actuarial valuations.

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Significant Audit Findings (Continued)

Qualitative Aspects of Accounting Practices (Continued)

We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements werereported in Note 5 regarding mitigation credits, Note 9 regarding unearned revenue from capacity right purchases, Note 12 regarding the defined benefit pension plans and Note 13 regarding Other Post-Employment Benefits.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. The following material misstatement detected as a result of audit procedures was corrected by management:

Beginning net position was increased to record the other post-employment benefit (OPEB) asset.

Disagreements with Management

For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations

We have requested certain representations from management that are included in the management representation letter dated October 10, 2014.

Management Consultations with Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Authority’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

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Significant Audit Findings (Continued)

Other Audit Findings or Issues

We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Authority’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters

We applied certain limited procedures to management’s discussion and analysis and schedule of funding progress, which are required supplementary information (RSI) that supplements the financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on combining schedules of net position, combining schedules of revenues, expenses and changes in net position, combining schedule of fiduciary assets and liabilities, and combining schedule of changes in assets and liabilities (collectively, supplementary information), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.

Restriction on Use

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


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INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the Santa Ana Watershed Project Authority (the Authority) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements and have issued our report thereon dated October 10, 2014.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Authority’sinternal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Authority’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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COMMISSION MEMORANDUM NO. 8947 DATE: November 18, 2014 TO: SAWPA Commission SUBJECT: I-15 and CA91 Improvements PREPARED BY: Carlos Quintero, Project Manager RECOMMENDATION That the Commission receive and file. DISCUSSION Atkison Walsh Joint Venture (“Contractor”) is under contract to the Riverside County Transportation Commission to make various improvements to the 91 Freeway, near and at the intersection of Interstate 15 (“Project”). The work consists of demolishing several sections of the existing bridges at the CA91-I15 exchange, as well as constructing new and widening existing bridges. Two sections of the Brine Line (Reach 4B Upper and Reach 5) are located within the Project limits within both Riverside County Flood Control District (RCFCD) access roads and under existing Caltrans bridges. Specific impacts to the Brine Line resulting from Project construction so far have been limited to access to one Maintenance Access Structure and the RCFCD’s access road between Radio Road and Harrison Street. Access to this road is critical for Brine Line operation activities on Reach 4B Upper, because all scale build-up removed from the Brine Line is placed in dewatering bins located adjacent to the Corona Water Reclamation Facility #2 (see attached map). SAWPA currently is working with the Contractor to make sure access through the RCFCD easement is available during the planned January 2015 cleaning of Reach 4B Upper. SAWPA has been in close coordination with the Contractor to ensure the Brine Line is protected from loads resulting from installation of bridge falsework, temporary bridges, and construction equipment, as well as potential damage caused by drilling operations. The construction activity has resulted in additional workload for SAWPA staff, including, but not limited to responding to USA Dig Alert requests, monitoring activities that impact Brine Line Maintenance Access Structures, and meetings with the Contractor to monitor potholing activity. The estimated timeline for Project completion is late 2016. RESOURCE IMPACTS Costs to monitor the Brine Line near the construction activity are included in the FY14-15 Budget (Fund 240 – Brine Line Enterprise). Attachments: 1. Project Area Map 2. Project location photographs (5) CM 8947 I15_CA91_Improvements_Impacts_Brine_Line

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Temporary Bridge over Channel

Temporary Bridge over Channel

Access Road Temporarily Blocked

Proposed Drilling Location

I-15 / CA91 ImprovementsImpacts to Brine Line

!. Brine Line MAS

Brine LineREACH

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500 0 500250 Feet

CA91

I-15141

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Brine Line Reach 5 Along Flood Control Easement Looking South

carlos

Callout

26" Brine Line

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carlos

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Edge of Brine Line Encasement

carlos

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Proposed location for Cast in Place Drilled Pile. Note proximity of edge of drilling perimeter to Brine Line. Contractor will place a steel plate between drilling auger and Brine Line

carlos

Polygon

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Steel plate between drilling area and Brine Line

carlos

Text Box

Brine Line Reach 5

carlos

Callout

CA91 Overpass

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carlos

Line

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Line

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Oval

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Brine Line MAS

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Brine Line Reach 4B Upper - 18"

carlos

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Brine Line Reach 4B - Looking West along Flood Control Easement - This section of the easement is blocked off due to the temporary bridges.

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Line

carlos

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carlos

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carlos

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18" Brine Line

carlos

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View looking East along Flood Control easement. Note that temporary bridge beams are obstructing access.

carlos

Callout

CA91 Overpass

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carlos

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carlos

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18" Brine Line and MAS.

carlos

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Brine Line Reach 4B Upper Looking East. Note construction activity and temporary obstruction of Brine Line MAS.

Legislative Status Report for SAWPA AB 1 (Alejo D) Water quality: integrated plan: Salinas Valley. Current Text: Amended: 4/3/2013 pdf html Introduced: 12/3/2012 Last Amend: 4/3/2013 Status: 2/3/2014-From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. Location: 1/31/2014-A. DEAD Summary: Would appropriate $2,000,000 to the State Water Resources Control Board for use by the Greater

Monterey County Regional Water Management Group (management group) to develop an integrated plan to address the drinking water and wastewater needs of disadvantaged communities in the Salinas Valley whose waters have been affected by waste discharges, thereby making an appropriation. The bill would require the management group to consult with specified entities and to submit to the Legislature by January 1, 2016, the plan developed by the group. This bill contains other related provisions.

AB 21 (Alejo D) Safe Drinking Water Small Community Emergency Grant Fund. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 12/3/2012 Last Amend: 9/3/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 628, Statutes of 2013. Location: 10/8/2013-A. CHAPTERED Summary: Would authorize the Department of Public Health to assess a specified annual charge in lieu of

interest on loans for water projects made pursuant to the Safe Drinking Water State Revolving Fund, and deposit that money into the Safe Drinking Water Small Community Emergency Grant Fund, which the bill would create in the State Treasury. The bill would limit the grant fund to a maximum of $50,000,000. The bill would authorize the department to expend the money for grants for specified water projects that serve disadvantaged and severely disadvantaged communities, thereby making an appropriation.

AB 30 (Perea D) Water quality. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 12/3/2012 Last Amend: 5/24/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 629, Statutes of 2013. Location: 10/8/2013-A. CHAPTERED Summary: Current law authorizes the State Water Resources Control Board, until 2014, to assess a specified

annual charge in connection with any financial assistance made pursuant to the revolving fund program in lieu of interest that otherwise would be charged and requires the proceeds generated from the imposition of that charge to be deposited in the State Water Pollution Control Revolving Fund Small Community Grant Fund, along with any interest earned upon the moneys in the grant fund. This bill would eliminate the requirement that the charge remain unchanged until 2014 and instead would authorize the board to assess the charge without change unless the board makes a prescribed determination. This bill would require the board to replace the charge with an identical interest rate if the board ceases collecting the charge before the repayment is complete.

AB 71 (V. Manuel Pérez D) Salton Sea restoration. Current Text: Chaptered: 9/29/2013 pdf html Introduced: 1/10/2013 Last Amend: 9/3/2013 Status: 9/28/2013-Chaptered by Secretary of State - Chapter 402, Statutes of 2013. Location: 9/28/2013-A. CHAPTERED Summary: Would require the Secretary of the Natural Resources Agency, in consultation and coordination with

the Salton Sea Authority, to lead Salton Sea restoration efforts. This bill would authorize the authority to lead a restoration funding and feasibility study, in consultation with the agency, as prescribed. This bill would also require the secretary to seek input from the authority with regard to specified components of restoration of the Salton Sea. By imposing duties on a local joint powers authority, the bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws.

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http://asmdc.org/members/a30/

http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0001-0050/ab_1_bill_20130403_amended_asm_v98.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0001-0050/ab_1_bill_20130403_amended_asm_v98.html

http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=hOmA7gs9tQzk3PJ1Lg7jBQj9T25kxsmm06TIxQuvuDNuHQzHeQuiGPn710rJMNuZ


http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0001-0050/ab_21_bill_20131008_chaptered.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0001-0050/ab_21_bill_20131008_chaptered.html

http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=%2fHv37sLPt1zmp77MRuSIGa7QEW2Ap7kbqlwl51Qx5s%2boqpzVJh%2bKTjxIQCAbwZ3F




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AB 72 (Holden D) Municipal water district: board of directors. Current Text: Chaptered: 6/17/2013 pdf html Introduced: 1/10/2013 Last Amend: 3/19/2013 Status: 6/17/2013-Chaptered by Secretary of State - Chapter 8, Statutes of 2013. Location: 6/17/2013-A. CHAPTERED Summary: The Municipal Water District Law of 1911 provides for the formation of a municipal water district

and the election of a board of directors of a municipal water district. Current law requires directors, except directors elected at the district formation election, to take office on the first Monday after January 1 succeeding their election. This bill would instead require the directors of a municipal water district, except directors elected at a district formation election, to take office on the first Friday in December succeeding their election.

AB 80 (Committee on Budget) Drought relief. Current Text: Amended: 2/26/2014 pdf html Introduced: 1/10/2013 Last Amend: 2/26/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. INACTIVE FILE on

3/6/2014) Location: 8/31/2014-S. DEAD Summary: Would provide that a person or entity in violation of a term or condition of a permit, license,

certificate, or registration issued or an order adopted by the State Water Resources Control Board is liable in an amount not to exceed $500 for each day in which the violation occurs. These funds would be deposited in the Water Rights Fund. This bill contains other related provisions and other existing laws.

AB 115 (Perea D) Safe Drinking Water State Revolving Fund. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 1/14/2013 Last Amend: 9/6/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 630, Statutes of 2013. Location: 10/8/2013-A. CHAPTERED Summary: Would authorize a legal entity, as defined, to apply for grant funding on behalf of one or more public

water systems serving disadvantaged or severely disadvantaged communities if specified requirements are met, including having a signed agreement with each public water system for which it is applying for funding. By authorizing the use of a continuously appropriated fund for new purposes, this bill would make an appropriation. This bill contains other related provisions and other existing laws.

AB 118 (Committee on Environmental Safety and Toxic Materials) Safe Drinking Water State Revolving Fund. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 1/14/2013 Last Amend: 6/17/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 631, Statutes of 2013. Location: 10/8/2013-A. CHAPTERED Summary: Would limit loans and grants from the Safe Drinking Water State Revolving Fund for planning and

preliminary engineering studies, project design, and construction costs to those incurred by community and not-for-profit noncommunity public water systems and would specify that a small community water system or nontransient noncommunity water system that is owned by a public agency or a private not-for-profit water company and is serving a severely disadvantaged community, is deemed to have no ability to repay a loan. This bill contains other related provisions and other existing laws.

AB 119 (Committee on Environmental Safety and Toxic Materials) Water treatment devices. Current Text: Chaptered: 9/29/2013 pdf html Introduced: 1/14/2013 Last Amend: 8/30/2013 Status: 9/28/2013-Chaptered by Secretary of State - Chapter 403, Statutes of 2013. Location: 9/28/2013-A. CHAPTERED

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http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0051-0100/ab_80_bill_20140226_amended_sen_v96.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0051-0100/ab_80_bill_20140226_amended_sen_v96.html

http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=VJygaOnOlkSZRyhCygPRW%2fE%2bZuceSCb71ii1agVCjG077JpqMbsN17UPrAX2SI4Q




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Summary: Would revise the criteria and procedure for certification of water treatment devices for which a health or safety claim, as defined, is made and would require each manufacturer that offers for sale in California one of those water treatment devices to submit specified information, including the manufacturer's contact information, product identification information, the specific contaminant claimed to be removed or reduced by the device, and a product information worksheet, as described, to the State Department of Public Health for purposes of inclusion on the department's Internet Web site. This bill contains other related provisions.

AB 142 (Committee on Water, Parks and Wildlife) Water resources: infrastructure. Current Text: Amended: 5/6/2013 pdf html Introduced: 1/17/2013 Last Amend: 5/6/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was APPR. on 5/7/2013) Location: 1/24/2014-A. DEAD Summary: Current law establishes the Department of Water Resources in the Natural Resources Agency, and,

among other things, empowers the department to conduct investigations of all or any portion of any stream, stream system, lake, or other body of water. This bill would require the Department of Water Resources to initiate and complete a comprehensive study of California's state and local water supply infrastructure needs and provide a report to the Legislature by July 1, 2014, that summarizes those findings.

AB 145 (Perea D) State Water Resources Control Board: drinking water. Current Text: Amended: 6/18/2013 pdf html Introduced: 1/18/2013 Last Amend: 6/18/2013 Status: 8/15/2014-Failed Deadline pursuant to Rule 61(b)(14) . (Last location was APPR. SUSPENSE FILE on

8/19/2013). Location: 8/15/2014-S. DEAD Summary: Would transfer to the State Water Resources Control Board the various duties and responsibilities

imposed on the department by the California Safe Drinking Water Act. The bill would require these provisions to be implemented during the 2014-15 fiscal year. This bill contains other related provisions and other existing laws.

AB 183 (Dickinson D) Delta Protection Commission: executive director: comprehensive long-term resource

management plan: determination of consistency. Current Text: Introduced: 1/28/2013 pdf html Introduced: 1/28/2013 Status: 1/17/2014-Failed Deadline pursuant to Rule 61(b)(1). (Last location was W.,P. & W. on 2/15/2013) Location: 1/17/2014-A. DEAD Summary: Existing law, the Johnston-Baker-Andal-Boatwright Delta Protection Act of 1992, requires the Delta

Protection Commission to review and maintain a comprehensive long-term resource management plan for land uses within the primary zone, as defined, of the Delta. This bill would require the executive director to determine a discretionary project located in the primary zone to be consistent with the resource management plan provided that the project satisfies at least 4 of 5 specified criteria.

AB 195 (Hall D) Counties: construction projects: design-build. Current Text: Chaptered: 8/19/2013 pdf html Introduced: 1/28/2013 Last Amend: 5/20/2013 Status: 8/19/2013-Chaptered by Secretary of State - Chapter 121, Statutes of 2013. Location: 8/19/2013-A. CHAPTERED Summary: Current law, until 7-1-2014, authorizes counties to use alternative procedures, known as design-build,

for bidding on specified types of construction projects in the county in excess of $2,500,000, in accordance with specified procedures. Bill would extend these provisions until 7-1-2016. Because the additionally authorized projects would require payment of fees into the State Public Works Enforcement Fund, a continuously appropriated fund, it would make an appropriation. Bill contains other related provisions and other existing laws.

AB 240 (Rendon D) Mutual water companies. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 2/5/2013 Last Amend: 8/13/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 633, Statutes of 2013.

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http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0151-0200/ab_183_bill_20130128_introduced.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0151-0200/ab_183_bill_20130128_introduced.html

http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=5UQbYU%2fwLCNAeQSkfGUYSlgQFAXpU8jHqUk8s6CXoi1cOTP314pXBbi%2byM4kGUeY




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Location: 10/8/2013-A. CHAPTERED Summary: Current law requires each board member of a mutual water company that operates a public water

system to complete a training course regarding the duties of board members of mutual water companies, as specified. This bill would require a board member to repeat this training course every 6 years. This bill contains other related provisions and other existing laws.

AB 295 (Committee on Water, Parks and Wildlife) Water: water supply: infrastructure. Current Text: Amended: 5/6/2013 pdf html Introduced: 2/11/2013 Last Amend: 5/6/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was APPR. on 5/7/2013) Location: 1/24/2014-A. DEAD Summary: Would establish findings and declarations stating that the November 2014 ballot currently includes a

bond measure for $11.14 billion to fund projects related to water, that many Californians lack access to clean, safe, and affordable drinking water, and that it is in the general public interest to pass a general obligation bond to help fund projects that address the critical and immediate needs of disadvantaged, rural, or small communities and projects that leverage state and federal drinking water quality and wastewater treatment funds.

AB 378 (Hueso D) Resources: Delta research. Current Text: Introduced: 2/14/2013 pdf html Introduced: 2/14/2013 Status: 1/17/2014-Failed Deadline pursuant to Rule 61(b)(1). (Last location was A. & A.R. on 3/7/2013) Location: 1/17/2014-A. DEAD Summary: Would require a person conducting Delta research, as defined, whose research is funded, in whole or

in part, by the state, to take specified actions with regard to the sharing of the primary data, samples, physical collections, and other supporting materials created or gathered in the course of that research. The bill would authorize the Delta Independent Science Board to adopt guidelines to provide adjustments to, and, where essential, exceptions from, these requirements and would exempt the adoption of these guidelines from the procedural requirements for the adoption of regulations. This bill contains other related provisions.

AB 426 (Salas D) Water: water transfers: water right decrees. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 2/15/2013 Last Amend: 4/23/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 634, Statutes of 2013. Location: 10/8/2013-A. CHAPTERED Summary: Under current law, any water right determined under a court decree issued after Jan. 1, 1981, is

transferable as specified. Bill would eliminate the requirement that a court decree be issued after Jan. 1, 1981. AB 793 (Gray D) San Joaquin Valley Groundwater Conservancy. Current Text: Amended: 6/26/2014 pdf html Introduced: 2/21/2013 Last Amend: 6/26/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. THIRD READING on

6/30/2014) Location: 8/31/2014-S. DEAD Summary: Current law authorizes various conservancies to acquire, manage, direct the management of, and

conserve public lands in the state. Bill would establish the San Joaquin Valley Groundwater Conservancy, to undertake various activities related to the San Joaquin Valley, as defined, and would prescribe the management, powers, and duties of the conservancy. Bill would create the San Joaquin Valley Groundwater Conservancy Fund in the State Treasury. Moneys in the fund would be available, upon appropriation, for the purposes of the conservancy.

AB 803 (Gomez D) Water Recycling Act of 2013. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 2/21/2013 Last Amend: 8/12/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 635, Statutes of 2013. Location: 10/8/2013-A. CHAPTERED

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http://ct3k1.capitoltrack.com/PrintReport.aspx



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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=cIxQ%2bQ9DnIADFqKZBO8HNXKRwCQvNjZrKKoD2TqIYqq5M%2f9982NHDZ830peWzeB%2f




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Summary: Current law requires any person who, without regard to intent or negligence, causes or permits any sewage or other waste, or the effluent of treated sewage or other waste, to be discharged in or on any waters of the state, or where it probably will be discharged in or on any waters of the state, to immediately notify the local health officer of the director of environmental health of the discharge, as prescribed. This bill, the Water Recycling Act of 2013, would provide that this notification requirement does not apply to an unauthorized discharge of effluent of treated sewage defined as recycled water, as defined. This bill contains other related provisions and other existing laws.

AB 850 (Nazarian D) Public capital facilities: water quality. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 2/21/2013 Last Amend: 8/12/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 636, Statutes of 2013. Location: 10/8/2013-A. CHAPTERED Summary: Would authorize specified joint powers authorities, upon the application of a local agency that owns

and operates a publicly owned utility, as defined, to issue rate reduction bonds to finance a utility project, as defined, under specified circumstances. The bill would terminate the authority to issue rate reduction bonds pursuant to these provisions after December 31, 2020. The bill would provide that the rate reduction bonds are secured by utility project property, as defined. The bill would authorize the authority to impose on, and collect from, customers of the publicly owned utility a utility project charge, as a separate nonbypassable charge, to finance the rate reduction bond.

AB 953 (Ammiano D) California Environmental Quality Act. Current Text: Introduced: 2/22/2013 pdf html Introduced: 2/22/2013 Status: 1/31/2014-Failed Deadline pursuant to Rule 61(b)(3). (Last location was INACTIVE FILE on 5/31/2013) Location: 1/31/2014-A. DEAD Summary: Would require the lead agency to include in the environmental impact report (EIR) a detailed

statement on any significant effects that may result from locating the proposed project near, or attracting people to, existing or reasonably foreseeable natural hazards or adverse environmental conditions. Because the lead agency would be required to undertake this additional consideration, this bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws.

AB 1043 (Chau D) Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection

Bond Act of 2006: groundwater contamination. Current Text: Chaptered: 9/16/2014 pdf html Introduced: 2/22/2013 Last Amend: 8/22/2014 Status: 9/16/2014-Chaptered by Secretary of State - Chapter 349, Statutes of 2014. Location: 9/16/2014-A. CHAPTERED Summary: Current law requires the State Department of Public Health, in collaboration with the Department of

Toxic Substances Control, and the State Water Resources Control Board, to develop and adopt regulations governing the repayment of costs that are subsequently recovered from parties responsible for the contamination of groundwater. This bill would eliminate the requirement to develop and adopt regulations and instead would require that costs subsequently recovered from a party responsible for the contamination, as defined, be repaid to the state board and deposited, and separately accounted for, in the Groundwater Contamination Cleanup Project Fund, which this bill would create in the State Treasury.

AB 1078 (Quirk D) Water: water recycling technology. Current Text: Introduced: 2/22/2013 pdf html Introduced: 2/22/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was PRINT on 2/22/2013) Location: 1/24/2014-A. DEAD Summary: Current law provides that the Department of Water Resources operates the State Water Project and

exercises specified water planning functions. Current law also requires the department to update The California Water Plan, which is a plan for the conservation, development, and use of the water resources of the state. Under current law, various provisions regulate water recycling. This bill would state the intent of the Legislature to enact legislation to encourage the creation of new technologies to further the use of recycled water in the State.

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=anBEHutOQunqWVLkBg3Ovq0XLvgkEv2Sb1dRqVJti5hBqC2luy699xLPODOPrY39




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=qD1Y0op2Q%2f50kbQDaBZYZdRrrtq8tdt2N6RZE6eJDCQH6GelKW8xK5sQU8Rxkl55




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=fEvTBOwsVFspQV%2fO770eqt0k7ApOLOXygmY%2bq%2f%2bk3kHtK%2bxuTABBA%2f3asEh6dEcu




AB 1200 (Levine D) Recycled water: agricultural irrigation impoundments: pilot project. Current Text: Vetoed: 10/7/2013 pdf html Introduced: 2/22/2013 Last Amend: 8/27/2013 Status: 10/7/2013-Vetoed by the Governor Location: 10/7/2013-A. VETOED Summary: Would, before Oct. 1, 2014, and until Jan. 1, 2018, permit the San Francisco Bay Regional Water

Quality Board to authorize a voluntary pilot project for the purposes of investigating potential water quality impacts associated with maximizing the supplementation of agricultural irrigation impoundments with disinfected tertiary treated recycled water, if the regional board finds that the proposed pilot project satisfies specified criteria

AB 1223 (Stone D) Safe drinking water act. Current Text: Introduced: 2/22/2013 pdf html Introduced: 2/22/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was PRINT on 2/22/2013) Location: 1/24/2014-A. DEAD Summary: Current law finds and declares, among other things, that over 95% of all large public water systems in

California are in compliance with health-based action levels established by the State Department of Public Health for various contaminants, and that it is the intent of the legislature to establish a drinking water regulatory program to provide for the orderly and efficient delivery of safe drinking water within the state and to give the establishment of drinking water standards and public health goals greater emphasis and visibility.

AB 1249 (Salas D) Integrated regional water management plans: nitrate, arsenic, perchlorate, or hexavalent

chromium contamination. Current Text: Chaptered: 9/29/2014 pdf html Introduced: 2/22/2013 Last Amend: 6/30/2014 Status: 9/28/2014-Chaptered by Secretary of State - Chapter 717, Statutes of 2014. Location: 9/28/2014-A. CHAPTERED Summary: The the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection

Bond Act of 2006 requires that eligible projects implement integrated regional water management plans that meet specified criteria and requires the Department of Water Resources to give preference to certain proposals. This bill would make the guidelines applicable to all funds that are or may become available for integrated regional water management plan implementation.

AB 1251 (Gorell R) Water quality: stormwater. Current Text: Amended: 4/10/2013 pdf html Introduced: 2/22/2013 Last Amend: 4/10/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was APPR. SUSPENSE FILE on

5/16/2013) Location: 1/24/2014-A. DEAD Summary: Would require the Secretary for Environmental Protection to convene a stormwater task force to

review, plan, and coordinate stormwater-related activity to maximize regulatory effectiveness in reducing water pollution. Bill would require the task force to meet on a quarterly basis. Bill contains other related provisions.

AB 1259 (Olsen R) Sacramento-San Joaquin Valley. Current Text: Chaptered: 9/6/2013 pdf html Introduced: 2/22/2013 Last Amend: 3/21/2013 Status: 9/6/2013-Chaptered by Secretary of State - Chapter 246, Statutes of 2013. Location: 9/6/2013-A. CHAPTERED Summary: Current law requires each city and county within the Sacramento-San Joaquin Valley, within 24

months of the adoption of the Central Valley Flood Protection Plan, to amend its general plan to include specified data, policies, and implementation measures. The city or county is also required, within 36 months of the adoption of the Central Valley Flood Protection Plan, but not more than 12 months after the amendment of its

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http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1151-1200/ab_1200_bill_20130912_enrolled.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1151-1200/ab_1200_bill_20130912_enrolled.html

http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=uzXgGZYeE8ksBnpix8IMHSsjkn6a0JFsEIoe7Rokhl7Tch6ZVPon06jsaRw5FC53




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http://arc.asm.ca.gov/member/AD44/



http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=cLqN9CnXPQXPipxksMV2NHoxnXKGxth1sT3zJzC%2fMH8laTDIR3%2fJtwsADOhLckan




general plan, to amend its zoning ordinance to be consistent with the general plan, as amended. This bill would include, among the findings that exempt a city or county from the above-described prohibition and requirement, a finding that property in an undetermined risk area has met the urban level of flood protection based on substantial evidence in the record. This bill contains other existing laws.

AB 1301 (Bloom D) Oil and gas: hydraulic fracturing. Current Text: Amended: 3/21/2013 pdf html Introduced: 2/22/2013 Last Amend: 3/21/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was APPR. SUSPENSE FILE on

5/15/2013) Location: 1/24/2014-A. DEAD Summary: Would define "hydraulic fracturing" and would prohibit hydraulic fracturing in oil and gas operations

until the Legislature enacts subsequent legislation that determines whether and under what conditions hydraulic fracturing may be conducted while protecting the public health and safety and the natural resources of the state. This bill contains other related provisions and other existing laws.

AB 1331 (Rendon D) Clean, Safe, and Reliable Drinking Water Act of 2014. Current Text: Amended: 6/17/2014 pdf html Introduced: 2/22/2013 Last Amend: 6/17/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. RLS. on 6/18/2014) Location: 8/31/2014-S. DEAD Summary: (1) Current law, the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, if approved by

the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would repeal these provisions. This bill contains other related provisions and other current laws.

AB 1349 (Gatto D) CalConserve Water Use Efficiency Revolving Fund. Current Text: Introduced: 2/22/2013 pdf html Introduced: 2/22/2013 Status: 2/3/2014-From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. Location: 1/31/2014-A. DEAD Summary: Would establish the CalConserve Water Use Efficiency Revolving Fund administered by the

Department of Water Resources and would continuously appropriate moneys in the fund, without regard to fiscal year, to the department, for the purpose of water use efficiency projects. This bill would require moneys in the fund to be used for purposes that include, but are not limited to, at-or-below market interest rate loans and would permit the department to enter into agreements with local governments or investor-owned utilities that provide water or recycled water service to provide loans.

AB 1445 (Logue R) California Water Infrastructure Act of 2014. Current Text: Amended: 2/14/2014 pdf html Introduced: 1/6/2014 Last Amend: 2/14/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was A. W.,P. & W. on 2/18/2014) Location: 8/31/2014-A. DEAD Summary: Current law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if

approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would repeal these provisions.

AB 1527 (Perea D) Public water systems: Safe Drinking Water State Revolving Fund. Current Text: Vetoed: 9/29/2014 pdf html Introduced: 1/17/2014

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http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1501-1550/ab_1527_bill_20140829_enrolled.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1501-1550/ab_1527_bill_20140829_enrolled.html

Last Amend: 8/20/2014 Status: 9/28/2014-Vetoed by the Governor Location: 9/28/2014-A. VETOED Summary: Would require the State Water Resources Control Board to provide incentives for the consolidation of

public water systems based upon a service review developed by a local agency formation commission. This bill would repeal these provisions as of January 1 of the next calendar year occurring after the board provides notice to the Legislature and the Secretary of State and posts notice on its Internet Web site that the board has adopted a policy handbook.

AB 1630 (Alejo D) Water quality: integrated plan: Salinas Valley. Current Text: Amended: 5/27/2014 pdf html Introduced: 2/10/2014 Last Amend: 5/27/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. E.Q. on 6/5/2014) Location: 8/31/2014-S. DEAD Summary: Would appropriate $500,000 from the Waste Discharge Permit Fund, as specified, to the State Water

Resources Control Board for use by the Greater Monterey County Regional Water Management Group to develop an integrated plan to address the drinking water and wastewater needs of disadvantaged communities in the Salinas Valley whose waters have been affected by waste discharges, thereby making an appropriation. This bill contains other related provisions.

AB 1632 (Olsen R) Water rights: appropriation. Current Text: Introduced: 2/10/2014 pdf html Introduced: 2/10/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was PRINT on 2/10/2014) Location: 5/9/2014-A. DEAD Summary: Under current law, the State Water Resources Control Board administers a water rights program

pursuant to which the board grants permits and licenses to appropriate water. Current law requires the board to allow the appropriation for beneficial purposes of unappropriated water under terms and conditions as in its judgment will best develop, conserve, and utilize in the public interest the water sought to be appropriated. This bill would make a technical, nonsubstantive change in these provisions.

AB 1636 (Brown D) Water conservation. Current Text: Amended: 4/21/2014 pdf html Introduced: 2/10/2014 Last Amend: 4/21/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was L. GOV. on 4/24/2014) Location: 5/9/2014-A. DEAD Summary: Would prohibit a city or county, during a drought emergency declared by the Governor, from

enforcing a law or ordinance requiring a resident to water his or her lawn. This bill would provide that a requirement imposed by a governmental entity or a public utility to limit, restrict, or conserve water during a drought emergency declared by the Governor does not constitute a diminution of rent or value of a premise or property.

AB 1671 (Frazier D) Sacramento-San Joaquin Delta: water conveyance system. Current Text: Introduced: 2/12/2014 pdf html Introduced: 2/12/2014 Status: 5/2/2014-Failed Deadline pursuant to Rule 61(b)(5). (Last location was W.,P. & W. on 2/20/2014) Location: 5/2/2014-A. DEAD Summary: Under current law, State Water Project facilities include, among others, the facilities that are

specified or authorized by the Legislature as part of the state Central Valley Project. This bill would prohibit the Department of Water Resources from constructing water facilities as part of a specified water conveyance system unless specifically authorized by the Legislature.

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AB 1674 (Bigelow R) Vended water. Current Text: Amended: 3/28/2014 pdf html Introduced: 2/12/2014 Last Amend: 3/28/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was E.S. & T.M. on 4/1/2014) Location: 5/9/2014-A. DEAD Summary: Current law requires water-vending machines to be designed to reduce or remove turbidity, off-tastes,

and odors, to provide disinfection treatment, and to use processes for dissolved solids reduction or removal. Existing law defines "water-vending machine" for those purposes. This bill would exempt a water-vending machine from the requirements described above if the drinking water vended by the machine derives from a groundwater basin that does not exceed the maximum contaminant levels.

AB 1731 (Perea D) Integrated regional water management plans: funding: disadvantaged communities. Current Text: Introduced: 2/14/2014 pdf html Introduced: 2/14/2014 Status: 6/27/2014-Failed Deadline pursuant to Rule 61(b)(13). (Last location was S. N.R. & W. on 4/10/2014) Location: 6/27/2014-S. DEAD Summary: Would require in each integrated regional water management region that not less than 10% of any

funding for integrated regional water management planning purposes be used to facilitate and support the participation of disadvantaged communities in integrated regional water management planning and for projects that address critical water supply or water quality needs for disadvantaged communities. This bill contains other existing laws.

AB 1739 (Dickinson D) Groundwater management. Current Text: Chaptered: 9/16/2014 pdf html Introduced: 2/14/2014 Last Amend: 8/22/2014 Status: 9/16/2014-Chaptered by Secretary of State - Chapter 347, Statutes of 2014. Location: 9/16/2014-A. CHAPTERED Summary: Would provide specific authority to a groundwater sustainability agency, as defined in SB 1168 of the

2013-14 Regular Session, to impose certain fees. The bill would authorize the Department of Water Resources or a groundwater sustainability agency to provide technical assistance to entities that extract or use groundwater to promote water conservation and protect groundwater resources. This bill would require the department, by January 1, 2017, to publish on its Internet Web site best management practices for the sustainable management of groundwater.

AB 1807 (Dahle R) Water quality: organization and membership of regional boards. Current Text: Introduced: 2/18/2014 pdf html Introduced: 2/18/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was PRINT on 2/18/2014) Location: 5/9/2014-A. DEAD Summary: The Porter-Cologne Water Quality Control Act requires regional boards to consist of 7 members

appointed by the Governor, 6 of them on the basis of demonstrated interest or proven ability in the field of water quality and one as a public member not specifically associated with any enumerated qualification. This bill would make nonsubstantive changes to these provisions.

AB 1808 (Dahle R) Drinking water. Current Text: Introduced: 2/18/2014 pdf html Introduced: 2/18/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was PRINT on 2/18/2014) Location: 5/9/2014-A. DEAD Summary: Current law, the California Safe Drinking Water Act, requires the State Department of Public Health

to administer the regulation of drinking water and public water systems, as defined, to protect public health, including the conduct of research, studies, and demonstration programs relating to the provision of a dependable, safe supply of drinking water. This bill would make a technical, nonsubstantive change to these provisions.

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https://ad05.assemblygop.com/



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AB 1874 (Gonzalez D) Integrated regional water management plans: funding. Current Text: Amended: 4/23/2014 pdf html Introduced: 2/19/2014 Last Amend: 4/23/2014 Status: 5/23/2014-Failed Deadline pursuant to Rule 61(b)(8). (Last location was A. APPR. SUSPENSE FILE on

5/23/2014) Location: 5/23/2014-A. DEAD Summary: Would require the Department of Water Resources to develop a streamlined application process for

certain regional water management groups. The bill would require, in order to receive integrated regional water management grant funds through this streamlined application process, the specified regional water management group to file with the department a streamlined application form that includes information relating to projects to be funded by integrated regional water management grant funds.

AB 1896 (V. Manuel Pérez D) Coachella Valley Water District: nonpotable water use. Current Text: Chaptered: 8/22/2014 pdf html Introduced: 2/19/2014 Last Amend: 4/7/2014 Status: 8/22/2014-Chaptered by Secretary of State - Chapter 267, Statutes of 2014. Location: 8/22/2014-A. CHAPTERED Summary: Current law prohibits a person or local public agency from using, within the district's service area,

water from any source that is suitable for potable domestic use for nonpotable uses for cemeteries, parks, highway landscaped areas, new industrial facilities, and golf course irrigation if the board of directors of the district determines that suitable nonpotable water is available. This bill would add the use of potable domestic water for landscaped common areas of residential developments maintained by a homeowner's association as a prohibited use if the board of directors of the district determines that suitable nonpotable water is available.

AB 1913 (Jones-Sawyer D) Water rates. Current Text: Introduced: 2/19/2014 pdf html Introduced: 2/19/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was PRINT on 2/19/2014) Location: 5/9/2014-A. DEAD Summary: Current law requires the Public Utilities Commission, in establishing rates for water service, to

consider separate charges for costs associated with customer service, facilities, variable operating costs, including fixed and variable costs associated with supplying the water, or other components of the water service provided to water users. This bill would make a technical, nonsubstantive change to this provision of law.

AB 1983 (Gray D) Water meters: multiunit structures. Current Text: Introduced: 2/19/2014 pdf html Introduced: 2/19/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was H. & C.D. on 3/3/2014) Location: 5/9/2014-A. DEAD Summary: Would authorize the owner or operator of a building containing residential units to install equipment

to determine or use an economic allocation methodology to approximate the quantity of water that is provided to the tenants and used in the common areas of that building. The bill would also authorize the owner or operator of a building to charge tenants separately for water and wastewater service based on usage as determined through the use of that equipment or allocation methodology if certain requirements are met.

AB 2049 (Dahle R) Drinking water: point-of-entry and point-of-use treatment systems. Current Text: Introduced: 2/20/2014 pdf html Introduced: 2/20/2014 Status: 6/27/2014-Failed Deadline pursuant to Rule 61(b)(13). (Last location was S. E.Q. on 5/8/2014) Location: 6/27/2014-S. DEAD Summary: Current law requires the State Dept of Public Health to adopt regulations to implement the

California Safe Drinking Water Act, and to enforce provisions of the federal Safe Drinking Water Act, including requirements governing the use of point-of-entry and point-of-use treatment in lieu of centralized treatment where it can be demonstrated that centralized treatment is not immediately economically feasible. Current law limits the use of these alternate treatment methods to water systems with less than 200 service connections. Bill would, instead, limit the use of point-of-entry and point-of-use treatment to water systems with less than 500 service connections.

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AB 2067 (Weber D) Urban water management plans. Current Text: Chaptered: 9/19/2014 pdf html Introduced: 2/20/2014 Last Amend: 8/7/2014

Status: 9/19/2014-Chaptered by Secretary of State - Chapter 463, Statutes of 2014. Location: 9/19/2014-A. CHAPTERED Summary: Would require an urban retail water supplier and an urban wholesale water supplier to provide

narratives describing the supplier's water demand management measures, as provided. The bill would require, for urban retail water suppliers, the narrative to address the nature and extent of each water demand management measure implemented over the past 5 years and describe the water demand management measures that the supplier plans to implement to achieve its water use targets.

AB 2100 (Campos D) Common interest developments: yard maintenance: fines: drought. Current Text: Chaptered: 7/21/2014 pdf html Introduced: 2/20/2014 Last Amend: 6/10/2014 Status: 7/21/2014-Chaptered by Secretary of State - Chapter 164, Statutes of 2014. Location: 7/21/2014-A. CHAPTERED Summary: Would prohibit an association of a common interest development from imposing a fine or assessment

against a member of a separate interest for reducing or eliminating watering of vegetation or lawns during any period for which the Governor has declared a state of emergency, or a local government has declared a local emergency, due to drought. This bill contains other related provisions.

AB 2108 (Eggman D) Sacramento-San Joaquin Valley: flood management. Current Text: Amended: 5/13/2014 pdf html Introduced: 2/20/2014 Last Amend: 5/13/2014 Status: 6/27/2014-Failed Deadline pursuant to Rule 61(b)(13). (Last location was S. N.R. & W. on 5/27/2014) Location: 6/27/2014-S. DEAD Summary: The Planning and Zoning Law prohibits the legislative body of a city or county within the

Sacramento-San Joaquin Valley, after specified general plan amendments have been made, and corresponding zoning ordinances adopted, from taking specified actions regarding property located within a flood hazard zone unless the city or county makes specified findings. This bill would require the city or county to make a finding that the local flood management agency is making adequate progress towards a flood protection system. This bill would authorize the Central Valley Flood Protection Board to determine, in its sole discretion, that preconstruction planning or design activities of a flood protection system by the local flood management agency are sufficient to constitute adequate progress.

AB 2170 (Mullin D) Joint powers authorities: common powers. Current Text: Chaptered: 9/17/2014 pdf html Introduced: 2/20/2014 Last Amend: 6/17/2014 Status: 9/17/2014-Chaptered by Secretary of State - Chapter 386, Statutes of 2014. Location: 9/17/2014-A. CHAPTERED Summary: Current law provides that 2 or more public agencies, by agreement, may form a joint powers

authority to exercise any power common to the contracting parties, as specified. This bill would provide that the parties to the agreement may exercise any power common to the contracting parties, including, but not limited to, the authority to levy a fee, assessment, or tax, as specified.

AB 2179 (Gray D) Water efficiency: standards and goals. Current Text: Amended: 3/28/2014 pdf html Introduced: 2/20/2014 Last Amend: 3/28/2014 Status: 5/2/2014-Failed Deadline pursuant to Rule 61(b)(5). (Last location was W.,P. & W. on 4/1/2014) Location: 5/2/2014-A. DEAD

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=3XxpwRJ%2bP97I6a4uTeHzdJHSKr3kzimOzViMqXBrPo%2f8MyEbz2Wt954CHXxVd3iE




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=3XxpwRJ%2bP97I6a4uTeHzdNTRLsgg8vdIvfIpQstHkPyo7U7cX0f7z4jVHoBfZeRd




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=gG64eWKMsUw11leJ3ZIZcYsfHhidByU8Hw4r5P4LxX1jmHGIjkgvSuUtHE7X%2bqAq




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=gG64eWKMsUw11leJ3ZIZcUlPGiFslHU%2b%2fU%2fC65vsLjqTuE%2fy%2fxjS0wsYGBfkpUtG




Summary: Would require the State Water Resources Control Board to establish standards and goals for achieving water use efficiency, in conjunction with the University of California, Merced.

AB 2189 (Garcia D) Water replenishment districts: replenishment assessment. Current Text: Amended: 4/22/2014 pdf html Introduced: 2/20/2014 Last Amend: 4/22/2014 Status: 5/23/2014-Failed Deadline pursuant to Rule 61(b)(8). (Last location was A. APPR. SUSPENSE FILE

on 5/23/2014) Location: 5/23/2014-A. DEAD Summary: The Water Replenishment District Act requires a governing board of a water district to hold a public

hearing to determine whether and to what extent a replenishment assessment should be levied and for the board to provide public notice of the hearing in each affected county, as specified. This bill would require the board to make the specified findings and determinations before holding the public hearing and would require the board to identify water-producing facilities within the district that would be subject to the proposed replenishment assessment and give written notice by mail to the owners of those water-producing facilities, as specified.

AB 2193 (Gordon D) Habitat Restoration and Enhancement Act. Current Text: Chaptered: 9/27/2014 pdf html Introduced: 2/20/2014 Last Amend: 8/22/2014 Status: 9/26/2014-Chaptered by Secretary of State - Chapter 604, Statutes of 2014. Location: 9/26/2014-A. CHAPTERED Summary: Would enact the Habitat Restoration and Enhancement Act and require the Director of Fish and

Wildlife to approve a habitat restoration or enhancement project, as defined, if specified conditions are met as determined by the director. The act would create the Habitat Restoration and Enhancement Account within the Fish and Game Preservation Fund and authorize the department to enter into an agreement to accept funds to achieve the purposes of the Habitat Restoration and Enhancement Act and deposit those funds into that account.

AB 2259 (Ridley-Thomas D) Water replenishment: assessments. Current Text: Chaptered: 9/29/2014 pdf html Introduced: 2/21/2014 Last Amend: 7/1/2014 Status: 9/28/2014-Chaptered by Secretary of State - Chapter 736, Statutes of 2014. Location: 9/28/2014-A. CHAPTERED Summary: The Water Replenishment District Act requires the governing board of each district to follow

specified procedural processes when determining whether to assess, and the amount of, a replenishment assessment. This bill would require that a judicial action or proceeding to attack, review, set aside, void, or annul a resolution or motion made on or after January 1, 2015, levying a replenishment assessment pursuant to those provisions be commenced within 180 days of the adoption of the resolution or motion. The bill would also require that an action brought on or after January 1, 2015, regarding the replenishment assessment be brought pursuant to specified provisions regarding civil proceedings.

AB 2269 (Bigelow R) Integrated regional water management planning. Current Text: Introduced: 2/21/2014 pdf html Introduced: 2/21/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was PRINT on 2/21/2014) Location: 5/9/2014-A. DEAD Summary: Current law authorizes a regional water management group to prepare and adopt an integrated

regional water management plan with specified components. This bill would make a technical, nonsubstantive change to that provision.

AB 2282 (Gatto D) Building standards: recycled water systems. Current Text: Chaptered: 9/27/2014 pdf html Introduced: 2/21/2014 Last Amend: 8/19/2014

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=YV6W9P3q947wbhnWAhBLtArcsl5uPI6nPu5P7KP6rThgqdmWEPIanqSEOEMEsr3b




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=JVewnF7gb4SJ1iZzT8vYCbQKvZ%2bSsN1NEmncmaY1%2bXacHC8MhsvwWQS4LEa8Uafq




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=CEcNjUplqavlylsOEDgc0fNAG19CnMOEP%2buRKDMKwHJkHHq%2bkze%2bBGdAAIhJmL0%2f




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=Dww9A6K1sPjizkxqSTeriRnlTJs%2b7vPNIjLdMd%2bdJ7AX0Pko370rBi3Js6j9EIib




Status: 9/26/2014-Chaptered by Secretary of State - Chapter 606, Statutes of 2014. Location: 9/26/2014-A. CHAPTERED Summary: Would require the Department of Housing and Community Development, in consultation with other

designated entities, to conduct research to assist in the development of, and to submit for adoption by the California Building Standards Commission of, mandatory building standards for the installation of recycled water systems for newly constructed single-family and multifamily residential buildings. The bill would authorize the department to expend funds from the existing Building Standards Administration Special Revolving Fund for this purpose, upon appropriation.

AB 2403 (Rendon D) Local government: assessments, fees, and charges. Current Text: Chaptered: 6/28/2014 pdf html Introduced: 2/21/2014 Last Amend: 6/2/2014 Status: 6/28/2014-Chaptered by Secretary of State - Chapter 78, Statutes of 2014. Location: 6/28/2014-A. CHAPTERED Summary: The Proposition 218 Omnibus Implementation Act, prescribes specific procedures and parameters for

local jurisdictions to comply with Articles XIII C and XIII D of the California Constitution and defines various terms for these purposes. This bill would modify the definition of water to mean water from any source. The bill would also make legislative findings and declarations in this regard.

AB 2417 (Nazarian D) California Environmental Quality Act: exemption: recycled water pipelines. Current Text: Amended: 5/7/2014 pdf html Introduced: 2/21/2014 Last Amend: 5/7/2014 Status: 6/27/2014-Failed Deadline pursuant to Rule 61(b)(13). (Last location was S. E.Q. on 6/5/2014) Location: 6/27/2014-S. DEAD Summary: Would, until January 1, 2018, additionally exempt from CEQA a project for the construction and

installation of a new pipeline or the maintenance, repair, restoration, reconditioning, relocation, replacement, removal, or demolition of an existing pipeline, not exceeding 8 miles in length, for the distribution of recycled water within a public street, highway, or right-of-way and would require the lead agency to undertake specified activities, including the filing of a notice of exemption for the project with the Office of Planning and Research and the office of the county clerk of each county in which the project is located.

AB 2432 (Salas D) Drinking water. Current Text: Introduced: 2/21/2014 pdf html Introduced: 2/21/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was PRINT on 2/21/2014) Location: 5/9/2014-A. DEAD Summary: Current law, the California Safe Drinking Water Act, requires the State Department of Public Health

to administer the regulation of drinking water and public water systems, as defined, to protect public health, including the conduct of research, studies, and demonstration programs relating to the provision of a dependable, safe supply of drinking water.

AB 2442 (Gordon D) Porter-Cologne Water Quality Control Act: remedial action: liability. Current Text: Chaptered: 9/29/2014 pdf html Introduced: 2/21/2014 Last Amend: 8/20/2014 Status: 9/28/2014-Chaptered by Secretary of State - Chapter 739, Statutes of 2014. Location: 9/28/2014-A. CHAPTERED Summary: Would prohibit the State Water Resources Control Board, California regional water quality control

board, or an employee of the state board or regional board from being held liable in a civil proceeding for trespass or any other act that is necessary to carry out an investigation, cleanup, abatement, or other remedial work. This bill would also prohibit the state board, regional board, or any authorized person from incurring any obligation to undertake additional investigation, cleanup, abatement, or other remedial work solely because of its decision to undertake that work.

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=7NnIYLJNZ02pno2njA%2bRZvIIbdTmKbmfUjqZyzKixNMWeGrkiwM66FoMv%2bcz7GYu




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=y8aJ31n3LtzcsqcZD%2fckq0Krh8eyWt95b2yPPzyDQDnCZUK3HanjqXCqDnFlFosX




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=qP%2fye3zr8ClxxXgUxc0YUQ0vBz4F7Z3jN57xzKmgKlCGpxgShXz3XUVubz0l1Kpr




AB 2446 (Waldron R) Standby charges: San Luis Rey Municipal Water District. Current Text: Chaptered: 9/29/2014 pdf html Introduced: 2/21/2014 Last Amend: 5/28/2014 Status: 9/29/2014-Chaptered by Secretary of State - Chapter 818, Statutes of 2014. Location: 9/29/2014-A. CHAPTERED Summary: Would prohibit a standby assessment or availability charge levied for the San Luis Rey Municipal

Water District from exceeding $30 per acre per year for land on which the charge is levied or $30 per year for a parcel less than one acre. This bill would require the proceeds from the standby assessment or availability charge to be used for the purposes of management of local water supply and its quality.

AB 2453 (Achadjian R) Paso Robles Basin Water District. Current Text: Chaptered: 9/16/2014 pdf html Introduced: 2/21/2014 Last Amend: 8/4/2014 Status: 9/16/2014-Chaptered by Secretary of State - Chapter 350, Statutes of 2014. Location: 9/16/2014-A. CHAPTERED Summary: Would, until January 1, 2019, provide for the formation of the Paso Robles Basin Water District, and

would set forth the composition of, and method of election by landowners and registered voters for, the board of directors for the Paso Robles Basin Water District, the boundaries of which would be established and may be modified by the San Luis Obispo County Local Agency Formation Commission.

AB 2463 (Dickinson D) Water: plans. Current Text: Amended: 4/21/2014 pdf html Introduced: 2/21/2014 Last Amend: 4/21/2014 Status: 5/23/2014-Failed Deadline pursuant to Rule 61(b)(8). (Last location was A. APPR. SUSPENSE FILE on

5/23/2014) Location: 5/23/2014-A. DEAD Summary: Would require the Department of Water Resources to partner with the Regional Water Authority,

water suppliers in El Dorado, Placer, Sacramento, and Placer counties, and other interested agencies to develop a plan for investing in water supplies and other facilities in order to contribute to the reliability of water supplies for the Sacramento region's communities and environmental resources while also generating statewide benefits. The bill would require the plan to address certain matters, and would require the department to submit the plan to the Legislature on or before January 1, 2017.

AB 2554 (Rendon D) Clean, Safe, and Reliable Drinking Water Act of 2014. Current Text: Amended: 4/23/2014 pdf html Introduced: 2/21/2014 Last Amend: 4/23/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was A. APPR. on 4/30/2014) Location: 8/31/2014-A. DEAD Summary: Current law, the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, if approved by the

voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would repeal these provisions.

AB 2636 (Gatto D) CalConserve Water Use Efficiency Revolving Fund. Current Text: Chaptered: 9/29/2014 pdf html Introduced: 2/21/2014 Last Amend: 8/19/2014 Status: 9/29/2014-Chaptered by Secretary of State - Chapter 825, Statutes of 2014. Location: 9/29/2014-A. CHAPTERED

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=cih5%2f2iFvoKP7CpbJbT%2bl4Uo7ZkQOaNY9IM3ldO17M8ZKnOFuX9n0ovFWWTRytKS




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=SUAfzqCrkm2eXviIcWip%2fqYt%2fYVW%2bTsJXC6ctLUETPTUwHmVluu9pKWUpABrQKSa




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=6nzlzins669oOpYScgU%2fHJp5NnZoQjMPW68sRwaiEGxBMI82cFT5ef8XKaXsOq3G




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=0iRDVHCt%2fyFAV6RBOFn4CeERVE9RpONbhre9AiH54GAJelwm2ppjjgBojZD%2fAR2S




Summary: Would establish the CalConserve Water Use Efficiency Revolving Fund and provide that the moneys in the fund are available to the Department of Water Resources, upon appropriation by the Legislature, for the purpose of water use efficiency projects. This bill would require moneys in the fund to be used for purposes that include, but are not limited to, at or below market interest rate loans to local agencies, as defined, and would permit the department to enter into agreements with local agencies that provide water or recycled water service to provide loans.

AB 2680 (Nazarian D) Water quality. Current Text: Introduced: 2/21/2014 pdf html Introduced: 2/21/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was PRINT on 2/21/2014) Location: 5/9/2014-A. DEAD Summary: The Porter-Cologne Water Quality Control Act establishes a statewide program for the control of the

quality of all the waters in the state and makes certain legislative findings and declarations. This bill would make technical, nonsubstantive changes to the legislative findings and declarations.

AB 2686 (Perea D) Clean, Safe, and Reliable Drinking Water Supply Act of 2014. Current Text: Amended: 5/1/2014 pdf html Introduced: 2/21/2014 Last Amend: 5/1/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was A. APPR. SUSPENSE FILE

on 8/7/2014) Location: 8/31/2014-A. DEAD Summary: Current law, the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, if approved by the

voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would repeal these provisions. This bill contains other related provisions and other current laws.

AB 2701 (Gonzalez D) Groundwater basins: investigation and report. Current Text: Introduced: 2/21/2014 pdf html Introduced: 2/21/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was PRINT on 2/21/2014) Location: 5/9/2014-A. DEAD Summary: Current law requires the Department of Water Resources, in conjunction with other public agencies,

to conduct an investigation of the state's groundwater basins and to report its findings to the Governor and the Legislature not later than January 1, 2012, and thereafter in years ending in 5 or 0. This bill would make a technical, nonsubstantive change in these provisions.

AB 2712 (Daly D) Hazardous materials: Orange County Water District: groundwater remediation. Current Text: Amended: 8/22/2014 pdf html Introduced: 2/21/2014 Last Amend: 8/22/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. THIRD READING on

8/25/2014) Location: 8/31/2014-S. DEAD Summary: Would require the Orange County Water District, when cleaning up or containing contamination or

pollution, abating the effects of the contamination or pollution, or, in the case of threatened contamination or pollution, taking other emergency, removal, or remedial action to provide notice of the action to a regional water quality control board and the Department of Toxic Substances Control, to meet and confer with agencies and any responsible party, and to comply with the requirements of the National Contingency Plan, as prescribed. This bill contains other related provisions and other existing laws.

SB 40 (Pavley D) Safe, Clean, and Reliable Drinking Water Supply Act of 2012. Current Text: Amended: 1/6/2014 pdf html Introduced: 12/10/2012 Last Amend: 1/6/2014

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=TeMeTJ3IeKkEgNvW5PRvXYYAxupxw8bpYdmbIgbj9fSehez5%2fBHvGlxAXeef8iNY




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=zvaT%2bA7LVBMtSIcBn%2fDXYLy%2b196rCi9wX3GiU3yrVUCgWPOb9ZLhhl7gcRbgINnQ




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=WsSNXf7Jewf1oT8BEaEi3ug%2fwz4ShWI2Zy47MOQNjtsEHPeLwko7GJRARPuRcaVs

http://sd27.senate.ca.gov/

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0001-0050/sb_40_bill_20140106_amended_sen_v97.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0001-0050/sb_40_bill_20140106_amended_sen_v97.html

Status: 2/3/2014-Returned to Secretary of Senate pursuant to Joint Rule 56. Location: 2/3/2014-S. DEAD Summary: Would change the name of the Safe, Clean, and Reliable Drinking Water Supply Act of 2012 to the

Safe, Clean, and Reliable Drinking Water Supply Act of 2014 and declare the intent of the Legislature to amend the act for the purpose of reducing and potentially refocusing the $11,140,000,000 bond. This bill contains other related provisions.

SB 42 (Wolk D) Safe Drinking Water, Water Quality, and Flood Protection Act of 2014. Current Text: Amended: 9/11/2013 pdf html Introduced: 12/11/2012 Last Amend: 9/11/2013 Status: 2/3/2014-Returned to Secretary of Senate pursuant to Joint Rule 56. Location: 2/3/2014-S. DEAD Summary: Current law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if

approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would repeal these provisions. Bill contains other related provisions and other current laws.

SB 123 (Corbett D) Environmental and land use court. Current Text: Amended: 5/2/2013 pdf html Introduced: 1/18/2013 Last Amend: 5/2/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was APPR. SUSPENSE FILE on

5/23/2013) Location: 1/24/2014-S. DEAD Summary: Would, commencing July 1, 2014, require the Judicial Council to direct the creation of an

environmental and land use division within 2 or more superior courts within each of the appellate districts of the state to process civil proceedings brought pursuant to the California Environmental Quality Act or in specified subject areas, including air quality, biological resources, climate change, hazards and hazardous materials, land use planning, and water quality. The bill would require the Judicial Council, by rule of court, to identify statutes in those specified areas that would be within the jurisdiction of the environmental and land use court division. This bill contains other related provisions and other existing laws.

SB 167 (Gaines R) Environmental quality: California Environmental Quality Act. Current Text: Introduced: 2/4/2013 pdf html Introduced: 2/4/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was RLS. on 2/14/2013) Location: 1/24/2014-S. DEAD Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or

cause to be prepared by contract, and certify the completion of, an environmental impact report on a project, as defined, that it proposes to carry out or approve that may have a significant effect on the environment, or to adopt a negative declaration if it finds that the project will not have that effect. This bill would make technical, nonsubstantive changes to those provisions.

SB 395 (Jackson D) Hazardous waste: wells. Current Text: Amended: 5/28/2013 pdf html Introduced: 2/20/2013 Last Amend: 5/28/2013 Status: 1/31/2014-Failed Deadline pursuant to Rule 61(b)(3). (Last location was INACTIVE FILE on 5/30/2013) Location: 1/31/2014-S. DEAD Summary: Would delete the exclusion of regulated wells from the definition of "injection well," thereby

subjecting those wells to the requirements imposed upon injection wells. The bill would also require a generator of produced water to test the produced water in order to determine whether it is hazardous waste within the meaning of specified provisions. This bill contains other related provisions and other existing laws.

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=P1yMiwqQUIKyYfj7am3C19R99ThERb6kwq%2bS02fPLlFNMWJ9gzEJxarAca04vdqw




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=1FxKF3Hpuxm2GlceebaWkT5TzYipBI%2bMDa2366jirOrg3SUD1obOheezAESswia1

http://cssrc.us/web/1/

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0151-0200/sb_167_bill_20130204_introduced.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0151-0200/sb_167_bill_20130204_introduced.html

http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=ATIH%2b0Bh%2bGyxn7F%2b57CAlOQz%2bJBe0wBAg%2bNR5KjOsoQlj3qYLPMkdZbjRrUCLMqH




SB 429 (Hernandez D) San Gabriel Basin Water Quality Authority Act. Current Text: Chaptered: 9/6/2013 pdf html Introduced: 2/21/2013 Last Amend: 6/6/2013 Status: 9/6/2013-Chaptered by Secretary of State - Chapter 214, Statutes of 2013. Location: 9/6/2013-S. CHAPTERED Summary: Would extend the July 1, 2017, date of repeal of the San Gabriel Basin Water Quality Authority Act

to July 1, 2030, thereby imposing a state-mandated local program by extending the period of time in which the authority and other local public entities are required to carry out various duties under the act. This bill contains other related provisions and other existing laws.

SB 449 (Galgiani D) Local water supply programs or projects: funding. Current Text: Amended: 8/14/2013 pdf html Introduced: 2/21/2013 Last Amend: 8/14/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was N.R. & W. on 12/9/2013) Location: 1/24/2014-S. DEAD Summary: Would require the Department of Water Resources to conduct a statewide inventory of local regional

water supply projects and post specified results of the inventory on the department's Internet Web site by July 1, 2014.

SB 620 (Wright D) Water replenishment districts. Current Text: Chaptered: 10/8/2013 pdf html Introduced: 2/22/2013 Last Amend: 9/11/2013 Status: 10/8/2013-Chaptered by Secretary of State - Chapter 638, Statutes of 2013. Location: 10/8/2013-S. CHAPTERED Summary: Would declare the intent of the Legislature to provide the Water Replenishment District of Southern

California with the ability to determine the appropriate use of moneys held in its annual reserve fund, and that public records shall help the Legislature determine whether the flexibility provided by the Water Replenishment District Act should be permanently extended beyond the 2019-20 fiscal year. This bill contains other related provisions and other existing laws.

SB 658 (Correa D) Orange County Water District Act: investigation, cleanup, and liability. Current Text: Amended: 5/15/2013 pdf html Introduced: 2/22/2013 Last Amend: 5/15/2013 Status: 1/31/2014-Failed Deadline pursuant to Rule 61(b)(3). (Last location was INACTIVE FILE on

5/24/2013) Location: 1/31/2014-S. DEAD Summary: The Orange County Water District Act requires the person causing or threatening to cause the

contamination or pollution to be liable to the Orange County Water District for reasonable costs actually incurred in cleaning up or containing the contamination or pollution, abating the effects of the contamination or pollution, or taking other remedial action. This bill would require the person also to be liable for the costs actually incurred in investigating the contamination or pollution. The bill would provide that these remedies are in addition to all other legal and equitable remedies available to the water district, including declaratory relief.

SB 731 (Steinberg D) Environment: California Environmental Quality Act. Current Text: Amended: 9/9/2013 pdf html Introduced: 2/22/2013 Last Amend: 9/9/2013 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was L. GOV. on 9/11/2013) Location: 8/31/2014-A. DEAD Summary: Would provide that aesthetic and parking impacts of a residential, mixed-use residential, or

employment center project, as defined, on an infill site, as defined, within a transit priority area, as defined, shall not be considered significant impacts on the environment. The bill would require the Office of Planning and

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http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0401-0450/sb_429_bill_20130906_chaptered.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0401-0450/sb_429_bill_20130906_chaptered.html

http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=Ci6jh%2fVNs21CmED1VVQl03SgLFN55n%2bYS8n0vL7%2fRth0GOdN4WX4MXjdK6cgMW61




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=ulPHiuT9Wt3BH3Cuzq%2fRBgbfF%2fX55R%2bpBdw0CPLB2ykXeaKT5eNlbYhE45pe11Ds




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=3nVeEfU6%2bKy9g0nYjmfx7DKXeyEKD0tRT49vvVri3bfqF8g9u0datTYJWJPwyccH




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=GkBm5DdFP4ivNsDD9ifLjYJFi3EQ3s9j1z2IWCm%2f92PclmFT1OijQqzu1YJzLQvY


http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0701-0750/sb_731_bill_20130909_amended_asm_v93.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0701-0750/sb_731_bill_20130909_amended_asm_v93.html

Research to prepare and submit to the Secretary of the Natural Resources Agency, and the secretary to certify and adopt, revisions to the guidelines for the implementation of CEQA establishing thresholds of significance for noise and transportation impacts of projects within transit priority areas. This bill contains other related provisions and other existing laws.

SB 735 (Wolk D) Sacramento-San Joaquin Delta Reform Act of 2009: multispecies conservation plans. Current Text: Amended: 5/24/2013 pdf html Introduced: 2/22/2013 Last Amend: 5/24/2013 Status: 6/27/2014-Failed Deadline pursuant to Rule 61(b)(13). (Last location was W.,P. & W. on 6/17/2013) Location: 6/27/2014-A. DEAD Summary: Would, on or before February 3, 2014, authorize prescribed local entities to enter into a memorandum

of understanding or other written agreement with the Delta Stewardship Council and the Department of Fish and Wildlife regarding multispecies conservation plans, as defined, that describes, among other things, how the parties would ensure that multispecies conservation plans that have been adopted or are under development are consistent with the Delta Plan.

SB 750 (Wolk D) Building standards: water meters: multiunit structures. Current Text: Amended: 8/8/2013 pdf html Introduced: 2/22/2013 Last Amend: 8/8/2013 Status: 6/27/2014-Failed Deadline pursuant to Rule 61(b)(13). (Last location was W.,P. & W. on 8/13/2013) Location: 6/27/2014-A. DEAD Summary: Would require a water purveyor that provides water service to a newly constructed multiunit

residential structure or newly constructed mixed-use residential and commercial structure that submits an application for a water connection after Jan. 1, 2015, to require measurement of the quantity of water supplied to each individual dwelling unit and to permit the measurement to be by individual water meters or submeters, as defined. Bill would require the owner of the structure to ensure that a water submeter installed for these purposes complies with laws and regulations governing approval of submeter types or the installation, maintenance, reading, billing, and testing of submeters, including, but not limited to, the California Plumbing Code.

SB 754 (Evans D) California Environmental Quality Act. Current Text: Amended: 5/6/2013 pdf html Introduced: 2/22/2013 Last Amend: 5/6/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was APPR. SUSPENSE FILE on

5/23/2013) Location: 1/24/2014-S. DEAD Summary: Would authorize a person meeting specified requirements to bring an action or proceeding to enforce

the implementation of the mitigation measures specified in a reporting and monitoring program adopted pursuant to CEQA if a project applicant fails to implement those measures. This bill contains other related provisions and other existing laws.

SB 772 (Roth D) Drinking water: County Water Company of Riverside water system: liability. Current Text: Amended: 1/6/2014 pdf html Introduced: 2/22/2013 Last Amend: 1/6/2014 Status: 2/3/2014-Returned to Secretary of Senate pursuant to Joint Rule 56. Location: 2/3/2014-S. DEAD Summary: Would exempt the Elsinore Valley Municipal Water District and the Eastern Municipal Water

District from liability for claims by past or existing County Water Company of Riverside customers or those consuming water provided through the County Water Company of Riverside water system concerning the operation and supply of water from the County Water Company of Riverside water system during the interim operation period, as specified, for any good faith, reasonable effort using ordinary care to assume possession of, and to operate and supply water to , the County Water Company of Riverside water system. This bill contains other related provisions and other existing laws.

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http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0701-0750/sb_750_bill_20130808_amended_asm_v94.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0701-0750/sb_750_bill_20130808_amended_asm_v94.html

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=sKb35O1xj0jbr7Tb0zElRWaV0Bx%2fKds8zfx4RV1t%2bFB60Cs43sySPQy%2fOA53mW4S




SB 783 (De León D) The California Clean Water, Safe Urban Parks, and Environmental Health Investment Act of 2014.

Current Text: Introduced: 2/22/2013 pdf html Introduced: 2/22/2013 Status: 1/24/2014-Failed Deadline pursuant to Rule 61(b)(2). (Last location was RLS. on 3/11/2013) Location: 1/24/2014-S. DEAD Summary: Current law enacts various programs pertaining to clean water and the establishment of public parks.

This bill would make specific findings and declarations and would declare the intent of the Legislature to enact legislation that would improve the economy, the natural environment, and increase and improve access opportunities to physical fitness, by enacting the California Clean Water, Safe Urban Parks, and Environmental Health Investment Act of 2014.

SB 848 (Wolk D) Safe Drinking Water, Water Quality, and Water Supply Act of 2014. Current Text: Amended: 7/3/2014 pdf html Introduced: 1/9/2014 Last Amend: 7/3/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. INACTIVE FILE on

8/18/2014) Location: 8/31/2014-S. DEAD Summary: Current law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if

approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would repeal these provisions. This bill contains other related provisions and other current laws.

SB 927 (Cannella R) Safe, Clean, and Reliable Drinking Water Supply Act of 2014. Current Text: Introduced: 1/29/2014 pdf html Introduced: 1/29/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. N.R. & W. on 2/6/2014) Location: 8/31/2014-S. DEAD Summary: Would rename the Safe, Clean, and Reliable Drinking Water Supply Act of 2012 as the Safe, Clean,

and Reliable Drinking Water Supply Act of 2014 and make conforming changes. The bill would instead authorize the issuance of bonds in the amount of $9,217,000,000 by reducing the amount available for projects related to drought relief and water supply reliability, as specified. The bill would remove the authorization for funds to be available for ecosystem and watershed protection and restoration projects, and would increase the amount of funds available for emergency and urgent actions to ensure safe drinking water supplies in disadvantaged communities and economically distressed areas.

SB 938 (Galgiani D) Water rights: reconsideration of a decision or order. Current Text: Introduced: 2/3/2014 pdf html Introduced: 2/3/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was RLS. on 2/20/2014) Location: 5/9/2014-S. DEAD Summary: Current law specifies procedures under which a person may be subject to administrative civil liability

for unauthorized diversion or use of water. Current law specifies procedures under which the State Water Resources Control Board is authorized to order a reconsideration of all or part of its decision or order. This bill would make a technical, nonsubstantive change to these provisions.

SB 985 (Pavley D) Stormwater resource planning. Current Text: Chaptered: 9/25/2014 pdf html Introduced: 2/11/2014 Last Amend: 8/18/2014 Status: 9/25/2014-Chaptered by Secretary of State - Chapter 555, Statutes of 2014. Location: 9/25/2014-S. CHAPTERED

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=zogemx6YHGewNXwRsw4ZEA32eZmvBEl%2bnk4laDRD%2bVzVVqhfVAyp1C6o9eq5ZCz8




http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=ROFzXCJ5FOA5W37uKW%2bRqQqrNG3tL8Xw7Lk8x0Bmveau10kQrXbQo4x4YOxa%2fkr%2b

http://district12.cssrc.us/



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Summary: Would authorize one or more public agencies to develop a stormwater resource plan. The bill would expand the standards to include dry weather runoff. This bill would require a stormwater resource plan to be submitted to any applicable regional water management group, to identify and prioritize stormwater and dry weather runoff capture projects for implementation in a prescribed quantitative manner, and to prioritize the use of lands or easements in public ownership for stormwater and dry weather runoff projects. This bill would eliminate the requirement that a stormwater resource plan be consistent with any applicable integrated regional water management plan.

SB 1036 (Pavley D) Urban water management plans. Current Text: Chaptered: 9/19/2014 pdf html Introduced: 2/18/2014 Last Amend: 5/27/2014 Status: 9/19/2014-Chaptered by Secretary of State - Chapter 485, Statutes of 2014. Location: 9/19/2014-S. CHAPTERED Summary: Would authorize an urban water supplier to include within an urban water management plan certain

energy-related information, including, but not limited to, an estimate of the amount of energy used to extract or divert water supplies. This bill would require the Department of Water Resources to include in its guidance for the preparation of urban water management plans a methodology for the voluntary calculation or estimation of the energy intensity of urban water systems .

SB 1049 (Pavley D) Integrated regional water management plans. Current Text: Amended: 4/23/2014 pdf html Introduced: 2/18/2014 Last Amend: 4/23/2014 Status: 5/23/2014-Failed Deadline pursuant to Rule 61(b)(8). (Last location was S. APPR. SUSPENSE FILE on

5/23/2014) Location: 5/23/2014-S. DEAD Summary: The Integrated Regional Water Management Planning Act defines "regional projects or programs" as

projects or programs identified in an integrated regional water management plan that accomplish specified water-related goals, including an increase in water supplies through the use of certain means. This bill would specifically include projects or programs that reduce energy used to acquire, transport, treat, or distribute water, or that develop and maintain computer models and other analytic tools to model regional water management strategies to account for climate change, energy use, and other factors relevant to regional demand and supply projections, as a regional project or program.

SB 1086 (De León D) The Safe Neighborhood Parks, Rivers, and Coastal Protection Bond Act of 2014. Current Text: Amended: 5/27/2014 pdf html Introduced: 2/19/2014 Last Amend: 5/27/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. INACTIVE FILE on

8/21/2014) Location: 8/31/2014-S. DEAD Summary: Would enact the Safe Neighborhood Parks, Rivers, and Coastal Protection Bond Act of 2014, which,

if adopted by the voters, would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance a safe neighborhood parks, rivers, and coastal protection program. The bill would provide for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill contains other related provisions.

SB 1120 (Galgiani D) Local water supply programs or projects: funding. Current Text: Chaptered: 9/29/2014 pdf html Introduced: 2/19/2014 Last Amend: 5/27/2014 Status: 9/29/2014-Chaptered by Secretary of State - Chapter 838, Statutes of 2014. Location: 9/29/2014-S. CHAPTERED Summary: Would require the DWR to conduct a voluntary statewide survey of local regional water supply

projects and post specified results of the survey on the department' s Internet website by July 1, 2015.

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http://ctweb.capitoltrack.com/public/publishbillinfo.aspx?bi=sIqEVEh%2baFq6P3Rr%2fksNLeGdQdxjWxYQ16IdNhuR2q%2bo5eqIeB28witPDlMSxVzX




SB 1130 (Roth D) Drinking water: County Water Company of Riverside water system: liability. Current Text: Chaptered: 7/21/2014 pdf html Introduced: 2/20/2014 Last Amend: 4/21/2014 Status: 7/21/2014-Chaptered by the Secretary of State, Chapter Number 173, Statutes of 2014 Location: 7/21/2014-S. CHAPTERED Summary: Would exempt the Elsinore Valley Municipal Water District, the Eastern Municipal Water District,

the Western Municipal Water District, and the Metropolitan Water District of Southern California from liability, as prescribed, for claims by past or existing County Water Company of Riverside customers or those who consumed water provided through the County Water Company of Riverside water system prior to and during the interim operation period, as specified

SB 1144 (Galgiani D) Common interest developments: local governments: yard maintenance fines: drought. Current Text: Introduced: 2/20/2014 pdf html Introduced: 2/20/2014 Status: 5/9/2014-Failed Deadline pursuant to Rule 61(b)(6). (Last location was T. & H. on 3/6/2014) Location: 5/9/2014-S. DEAD Summary: Under the Davis-Stirling Common Interest Development Act would prohibit an association from

imposing a fine or assessment on separate interest owners for yard maintenance issues related to under-watered plants and lawns during any period for which the Governor has declared a state of emergency due to drought.

SB 1168 (Pavley D) Groundwater management. Current Text: Chaptered: 9/16/2014 pdf html Introduced: 2/20/2014 Last Amend: 8/29/2014 Status: 9/16/2014-Chaptered by Secretary of State - Chapter 346, Statutes of 2014. Location: 9/16/2014-S. CHAPTERED Summary: Would state the policy of the state that groundwater resources be managed sustainably for long-term

reliability and multiple economic, social, and environmental benefits for current and future beneficial uses. This bill would state that sustainable groundwater management is best achieved locally through the development, implementation, and updating of plans and programs based on the best available science. This bill contains other related provisions and other existing laws.

SB 1250 (Hueso D) Safe, Clean, and Reliable Drinking Water Supply Act of 2014. Current Text: Amended: 5/7/2014 pdf html Introduced: 2/20/2014 Last Amend: 5/7/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was S. N.R. & W. on 5/7/2014) Location: 8/31/2014-S. DEAD Summary: Current law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if

approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the Nov 4, 2014, statewide general election. Bill would repeal these provisions. This bill contains other related provisions and other current laws.

SB 1292 (Hueso D) Safe Drinking Water State Revolving Fund. Current Text: Vetoed: 9/29/2014 pdf html Introduced: 2/21/2014 Last Amend: 8/18/2014 Status: 9/29/2014-Vetoed by the Governor Location: 9/29/2014-S. VETOED Summary: The Safe Drinking Water State Revolving Fund Law of 1997, establishes the Safe Drinking Water

State Revolving Fund, which is continuously appropriated to the State Water Resources Control Board for grants and revolving fund loans for the design and construction of projects for public water systems that will enable suppliers to meet safe drinking water standards. This bill would increase the maximum amount of a construction grant award to $5,000,000 for a water system serving severely disadvantaged communities, except as provided.

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http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_1251-1300/sb_1292_bill_20140902_enrolled.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_1251-1300/sb_1292_bill_20140902_enrolled.html

SB 1370 (Galgiani D) Reliable Water Supply Bond Act of 2014. Current Text: Amended: 3/24/2014 pdf html Introduced: 2/21/2014 Last Amend: 3/24/2014 Status: 8/31/2014-Failed Deadline pursuant to Rule 61(b)(17). (Last location was A. NAT. RES. on 4/8/2014) Location: 8/31/2014-A. DEAD Summary: Current law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if

approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would repeal these provisions.

SB 1390 (Correa D) Santa Ana River Conservancy Program. Current Text: Chaptered: 9/25/2014 pdf html Introduced: 2/21/2014 Last Amend: 8/21/2014 Status: 9/25/2014-Chaptered by Secretary of State - Chapter 562, Statutes of 2014. Location: 9/25/2014-S. CHAPTERED Summary: Would establish the Santa Ana River Conservancy Program, to be administered by the State Coastal

Conservancy, to address the resource and recreational goals of the Santa Ana River region. The bill would authorize the conservancy to acquire interests and options in real property and would prescribe the management, powers, and duties of the conservancy for purposes of the program.

SB 1420 (Wolk D) Water management: urban water management plans. Current Text: Chaptered: 9/19/2014 pdf html Introduced: 2/21/2014 Last Amend: 8/14/2014 Status: 9/19/2014-Chaptered by Secretary of State - Chapter 490, Statutes of 2014. Location: 9/19/2014-S. CHAPTERED Summary: Would require an urban water management plan to quantify and report on distribution system water

loss. The bill would authorize water use projections to display and account for the water savings estimated to result from adopted codes, standards, ordinances, or transportation and land use plans, when that information is available and applicable to an urban water supplier. The bill would require the plan, or amendments to the plan, to be submitted electronically to the Department of Water Resources and include any standardized forms, tables, or displays specified by the department.

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Santa Ana Watershed Project AuthorityCash Transaction ReportMonth of September 2014

Below is a summary of cash transactions completed during the month in the Authority's checking account with Citizens Business Bank. Attached are summaries by major revenue and expense classifications.

Cash Receipts and Deposits to Account 1,356,734.57$

Net Investment Transfers -

Cash Disbursements (2,236,992.77)

Net Change for Month (880,258.20)$

Balance at Beginning of Month 1,338,085.86

Balance at End of Month per General Ledger 457,827.66$

Collected Balance per Citizens Business Bank 478,014.58$

ACCOUNTS PAYABLE RECONCILIATION

Accounts Payable Balance @ 08/31/14 1,878,996.28$

Invoices Received for September 2014 2,312,686.61 Invoices Paid by check/wire during September 2014 (see attached register) (2,022,606.20)

Accounts Payable Balance @ 09/30/14 2,169,076.69$ .

169

CASH RECEIPTS

Brine Line Operating Revenues 586,966.56$ OCFCD Loan Payment - Subvention Funds 490,554.94 Member and Other Agency Contributions 41,678.00 LESJWA Admin Reimbursement 13,563.22 Prop 13,50,84 Grant 220,000.01 Other 3,971.84

Total Receipts and Deposits 1,356,734.57$

INVESTMENT TRANSFERS

Transfer of Funds: -$ From (to) LAIF - From (to) Grant Retention (CBB) - From (to) CalTRUST (CBB) - From (to) Wealth Management (CBB) -

Total Investment Transfers -$

CASH DISBURSEMENTS

By Check:Payroll 361.19$ Operations 2,027,160.73

Total Checks Drawn 2,027,521.92$

By Cash Transfer:Payroll 140,032.72$ Payroll Taxes 60,018.09 Letter of Credit Renewal Fee - Wire Transfer - FIA Card 4,554.53 Take Care (AFLAC) 4,865.51

Total Cash Transfers 209,470.85$

Total Cash Disbursements 2,236,992.77$

170

Category Check # Check Date Type Vendor Check Amount

Benefits 45534 09/05/14 CHK ACWA/JPIA 37,224.24$ Benefits 45541 09/05/14 CHK Public Employees' Retirement System 18,354.35$ Benefits 45542 09/05/14 CHK Cal PERS Long Term Care Program 104.77$ Benefits 45554 09/11/14 CHK AFLAC 319.27$ Benefits 45556 09/11/14 CHK State Compensation Insurance 2,127.14$ Benefits 45566 09/19/14 CHK Public Employees' Retirement System 18,354.34$ Benefits 45567 09/19/14 CHK Cal PERS Long Term Care Program 104.77$ Benefits 45568 09/19/14 CHK State Compensation Ins Fund 4,324.75$ Benefits 45573 09/19/14 CHK WageWorks 54.00$ Benefits 45576 09/19/14 CHK Mutual Of Omaha 2,177.23$ Benefits EFT000939 09/05/14 CHK Vantagepoint Transfer Agents 6,064.84$ Benefits EFT000941 09/05/14 CHK Vantagepoint Transfer Agents 375.52$ Benefits EFT000945 09/19/14 CHK Vantagepoint Transfer Agents 5,969.34$ Benefits EFT000950 09/19/14 CHK Vantagepoint Transfer Agents 375.52$ Benefits WDL000003223 09/04/14 WDL Takecare 383.00$ Benefits WDL000003240 09/15/14 WDL Takecare 1,524.00$ Benefits WDL000003245 09/16/14 WDL Takecare 23.65$ Benefits WDL000003248 09/18/14 WDL Takecare 1,560.00$ Benefits WDL000003249 09/23/14 WDL Takecare 1,200.16$ Benefits WDL000003252 09/25/14 WDL Takecare 164.70$ Benefits WDL000003260 09/30/14 WDL Takecare 10.00$

Benefits Total 100,795.59$

Bid Notice 45582 09/25/14 CHK California Newspaper Service 215.00$ Bid Notice Total 215.00$

Car Repair/Maint 45570 09/19/14 CHK County of Riverside 1,218.15$ Car Repair/Maint 45586 09/25/14 CHK Riverside Transmission Center 38.81$

Car Repair/Maint Total 1,256.96$

Charge Card P024933 09/03/14 WDL FIA Card Services 4,554.53$ Charge Card Total 4,554.53$

Computer 45574 09/19/14 CHK Lenovo 5,043.82$ Computer EFT000957 09/25/14 CHK ESRI Inc. 13,080.00$

Computer Total 18,123.82$

Construction 45563 09/11/14 CHK Vali Cooper & Associates, Inc 13,760.00$ Construction Total 13,760.00$

Consulting 45546 09/05/14 CHK Wildermuth Environmental, Inc 8,005.75$ Consulting 45557 09/11/14 CHK The Dolphin Group 11,500.00$ Consulting 45558 09/11/14 CHK Web Casa Design 1,500.00$ Consulting 45559 09/11/14 CHK Accent Computer Solutions Inc 1,020.00$ Consulting 45575 09/19/14 CHK enfoTech 1,326.50$ Consulting EFT000942 09/11/14 CHK Trussell Technologies, Inc. 3,336.28$ Consulting EFT000951 09/19/14 CHK Integrated Systems Solutions 82.50$ Consulting EFT000958 09/25/14 CHK Risk Sciences 5,517.81$

Consulting Total 32,288.84$

Contract Services EFT000954 09/25/14 CHK Orange County Sanitation District 4,716.03$ Contract Services Total 4,716.03$

Debt Services 45544 09/05/14 CHK State Water Resources Control Board 227,182.02$ Debt Services 45580 09/25/14 CHK State Water Resources Control Board 403,469.87$ Debt Services 45587 09/25/14 CHK State Water Resources Control Board 338,065.20$ Debt Services 45588 09/25/14 CHK State Water Resources Control Board 271,591.78$

Debt Services Total 1,240,308.87$

Director EFT000953 09/25/14 CHK Inland Empire Utilities Agency 179.43$ Director EFT000955 09/25/14 CHK Philip Anthony 103.04$ Director EFT000956 09/25/14 CHK Eastern Municipal Water District 193.99$ Director EFT000959 09/25/14 CHK Western Municipal Water District 195.67$ Director EFT000960 09/25/14 CHK Ed Killgore 22.40$

Santa Ana Watershed Project AuthorityCheck Detail

September 2014

Page 1 of 3

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September 2014

Director EFT000962 09/25/14 CHK Mark Bulot 59.36$ Director EFT000963 09/25/14 CHK Harish S Sidhu 44.80$ Director EFT000964 09/25/14 CHK Jasmin Hall 58.24$

Director Total 856.93$

Employee Reimbursement EFT000943 09/11/14 CHK Ian Achimore 118.74$ Employee Reimbursement EFT000944 09/11/14 CHK Michael Plasencia 48.72$ Employee Reimbursement EFT000947 09/19/14 CHK David Ruhl 61.60$

Employee Reimbursement Total 229.06$

Equipment Expensed 45550 09/05/14 CHK Grainger 2,010.73$ Equipment Expensed 45560 09/11/14 CHK Grainger 65.25$ Equipment Expensed EFT000948 09/19/14 CHK G/M Business Interiors 4,303.52$

Equipment Expensed Total 6,379.50$

Equipment Rented 45540 09/05/14 CHK Konica Minolta Business Solutions 1,143.22$ Equipment Rented 45585 09/25/14 CHK NEC Financial Services LLC 1,343.85$

Equipment Rented Total 2,487.07$

Facility Repair/Maint 45545 09/05/14 CHK Burrtec Waste Industries Inc 73.48$ Facility Repair/Maint 45548 09/05/14 CHK State of California Dept of Industrial Relations 225.00$ Facility Repair/Maint 45549 09/05/14 CHK Elevator Support Services Inc 209.00$ Facility Repair/Maint 45551 09/05/14 CHK Inland Water Works Supply Co 1,014.12$ Facility Repair/Maint 45552 09/05/14 CHK Alexander Pacific Electrical Contractors 3,819.77$ Facility Repair/Maint 45561 09/11/14 CHK RKM Heating and Air Conditioning 132.00$ Facility Repair/Maint 45571 09/19/14 CHK Roquet Paving, Inc. 8,330.00$ Facility Repair/Maint 45572 09/19/14 CHK RKM Heating and Air Conditioning 373.00$ Facility Repair/Maint EFT000946 09/19/14 CHK Western Exterminator Co. 189.50$ Facility Repair/Maint EFT000961 09/25/14 CHK Green Meadows Landscape 575.00$

Facility Repair/Maint Total 14,940.87$

Lab Costs 45547 09/05/14 CHK E. S. Babcock & Sons, Inc. 694.00$ Lab Costs 45569 09/19/14 CHK E. S. Babcock & Sons, Inc. 1,392.00$ Lab Costs 45584 09/25/14 CHK E. S. Babcock & Sons, Inc. 73.00$

Lab Costs Total 2,159.00$

Legal Fees 45562 09/11/14 CHK Murphy & Evertz 380.00$ Legal Fees Total 380.00$

Office Expense 45535 09/05/14 CHK Aramark Corporation Refreshment Services 109.97$ Office Expense 45539 09/05/14 CHK Konica Minolta Business Solutions 777.10$

Office Expense Total 887.07$

Offsite Storage EFT000949 09/19/14 CHK Iron Mountain 216.14$ Offsite Storage Total 216.14$

Payroll 45564 09/19/14 CHK Payroll Check 361.19$ Payroll Total 361.19$

Payroll/Taxes WDL000003216 09/05/14 WDL Direct Deposit 9/5/2014 67,781.33$ Payroll/Taxes WDL000003221 09/05/14 WDL PR Tax - Federal 24,226.66$ Payroll/Taxes WDL000003222 09/05/14 WDL PR Tax - State 5,256.55$ Payroll/Taxes WDL000003227 09/08/14 WDL Direct Deposit 9/8/2014 3,746.30$ Payroll/Taxes WDL000003228 09/08/14 WDL PR Tax - Federal 627.38$ Payroll/Taxes WDL000003229 09/08/14 WDL PR Tax - State 40.66$ Payroll/Taxes WDL000003235 09/19/14 WDL Direct Deposit 9/19/2014 68,505.09$ Payroll/Taxes WDL000003241 09/19/14 WDL PR Tax - Federal 23,712.89$ Payroll/Taxes WDL000003242 09/19/14 WDL PR Tax - State 5,447.06$ Payroll/Taxes WDL000003243 09/30/14 WDL PR Tax - State 706.89$

Payroll/Taxes Total 200,050.81$

Petty Cash 45579 09/25/14 CHK Karen Williams, Custodian of Petty Cash 267.50$ Petty Cash Total 267.50$

Prop 84 45581 09/25/14 CHK Irvine Ranch Water District 50,000.00$ Prop 84 45583 09/25/14 CHK City of Corona 20,000.00$

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September 2014

Prop 84 Total 70,000.00$

Safety EFT000940 09/05/14 CHK Underground Service Alert 264.00$ Safety Total 264.00$

Shipping/Postage 45538 09/05/14 CHK Overnite Shipping 23.81$ Shipping/Postage 45555 09/11/14 CHK Overnite Shipping 10.36$ Shipping/Postage 45565 09/19/14 CHK Overnite Shipping 10.34$ Shipping/Postage 45577 09/25/14 CHK Overnite Shipping 24.84$

Shipping/Postage Total 69.35$

Treatment Costs EFT000938 09/05/14 CHK Orange County Sanitation District 514,084.01$ Treatment Costs Total 514,084.01$

Utilities 45536 09/05/14 CHK Riverside, City of 2,815.25$ Utilities 45537 09/05/14 CHK Verizon Wireless 1,457.82$ Utilities 45543 09/05/14 CHK Southern California Edison 32.47$ Utilities 45553 09/05/14 CHK Southern California Edison 229.05$ Utilities 45578 09/25/14 CHK AT&T 102.41$ Utilities EFT000952 09/19/14 CHK tw telecom 2,703.63$

Utilities Total 7,340.63$

Accounts Payable 2,236,992.77$

Checks 2,027,160.73$ Wire Transfers 4,554.53$

2,031,715.26$

Bank Fees -$

Take Care 4,865.51$ Payroll 200,412.00$

205,277.51$

Total Disbursements September 2014 2,236,992.77$

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173

RemainingCheck # Check Date Task # Task Description Vendor Name Total Contract Check Amount Contract Amount Notes/Comments

45559 09/11/14 ACS100-06 Support for Ongoing IT Projects Accent Computer Solutions Inc 27,000.00$ 868.00$ 22,852.50$ 45559 09/11/14 ACS100-06 Support for Ongoing IT Projects Accent Computer Solutions Inc 27,000.00$ 152.00$ 22,852.50$

45575 09/19/14 ENFO240-01 Data Management System enfoTech 229,085.00$ 1,326.50$ -$

EFT000951 09/19/14 INSOL100-06 GP Software - Technical Support Integrated Systems Solutions 5,000.00$ 49.50$ 4,917.50$ EFT000951 09/19/14 INSOL100-06 GP Software - Technical Support Integrated Systems Solutions 5,000.00$ 33.00$ 4,917.50$

EFT000958 09/25/14 RISK384-07 MSAR TMDL Task Force Risk Sciences 44,080.00$ 5,517.81$ 21,679.59$

45557 09/11/14 TDGI10000-17 Legislative & Government Relations Consulting The Dolphin Group 115,000.00$ 11,500.00$ 72,500.00$

EFT000942 09/11/14 TRU240-10 Evaluation of New S01 Station Sampling System Trussell Technologies, Inc. 17,655.00$ 3,336.28$ -$

45558 09/11/14 WCD100-03 Website Update and Support Web Casa Design 2,900.00$ 1,500.00$ 1,400.00$

45546 09/05/14 WILD374-08 Addendum to 2008 SAR Wasteload Allocation Model Wildermuth Environmental, Inc 80,000.00$ 8,005.75$ 34,584.07$

32,288.84$

September 2014

Santa Ana Watershed Project AuthorityConsulting

174

COMMISSION MEMORANDUM NO. 8945 DATE: November 18, 2014 TO: SAWPA Commission SUBJECT: Inter-Fund Borrowing – September 2014 PREPARED BY: Karen Williams, Chief Financial Officer RECOMMENDATION It is recommended that the Commission receive and file the informational report on short-term, cash-flow inter-fund borrowing. DISCUSSION On December 13, 2005, the Commission approved Resolution No. 452, Inter-Fund and Inter-Project Loan Policy. Staff was directed to bring back an accounting of the loans each month for review when the total exceeded $250,000 in aggregate. The following projects, with negative cash flow, are listed below with the amounts borrowed from SAWPA General Fund Reserves in September 2014. The total amount borrowed is over the aggregate $250,000 amount recommended in Resolution No. 452, Inter-Fund and Inter-Project Loan Policy. The Commission has requested that this item be brought back each month as an informational item when the loan amount is under the $250,000 aggregate amount. Fund Fund Name 08/31/14 Loan

Receipts New

Charges 09/30/14 Balance

130 Proposition 84 Admin $35,113.18 ($0) $5,045.34 $40,158.52 477 LESJWA Administration 12,201,28 (13,563.22) 12,215.43 10,853.49 Total Funds Borrowed $47,314.46 ($13,563.22) $17,260.77 $51,012.01 General Fund Reserves Balance $2,492,852.46 Less Amount Borrowed (51,012.01) Balance of General Fund Reserves $2,441,840.45 The following table lists each fund that has a negative cash flow, the source of funding for the fund, how often the fund is billed, and the projected rate of payment for the fund.

NEGATIVE CASH-FLOW FUNDS

Fund No. Source of Funding Billing Frequency

Projected Payment Time

130 – Proposition 84 Admin DWR – Prop 84 Grant Quarterly Up to 6 months 373 – Watershed Management Plan (OWOW) DWR – Prop 84 Planning Grant Quarterly Up to 6 months 477 – LESJWA Admin Reimbursement from LESJWA Monthly 2 to 4 weeks

175

CM#8945 November 18, 2014 Page 2 Fund 130 The outstanding balance of the funds due from DWR is the mandatory 10% retention from each invoice billed. Retention funds will not be released until the Proposition 84 Round I contract is completed in 2017. Fund 477 Each month LESJWA is billed the cost for administering the JPA. Once the bill is received, LESJWA submits payment within two weeks. The following graph shows projected inter-fund loan balances, total unrestricted General Fund Reserves available for loans, and projected cash net of loans through July 2015. The projected loan balance is expected to remain within the $250,000 aggregate limit through July 2015, and can be covered by General Fund Reserves without a major impact on cash flow.

RESOURCE IMPACTS The funds borrowed from the General Fund Reserves will be paid back with interest when the grant funding is received. Budgeted expenditures from the General Fund and proposed borrowings are not expected to have an impact on the General Fund Reserves balance. CM 8945 Interfund Borrowing Sep'14

- 500

1,000 1,500 2,000 2,500 3,000

Jul-1

4

Aug-

14

Sep-

14

Oct

-14

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Thou

sand

s

Projected General Cash / Reserves Fund Balance

Unrestricted Reserve Funds Interfund Loans

$250,000 Projected Cash Net of Loans

176

COMMISSION MEMORANDUM NO. 8946 DATE: November 18, 2014 TO: SAWPA Commission SUBJECT: Performance Indicators and Financial Reporting – September 2014 PREPARED BY: Karen Williams, Chief Financial Officer RECOMMENDATION It is recommended that the Commission receive and file staff’s report. DISCUSSION The attached reports have been developed to keep the Commission informed as to SAWPA’s business and budget performance. These reports are categorized into the following groups: financial reporting, cash and investments, and performance indicators. They are explained in detail below. As new reports are developed, they will be added for the Commission’s review. Financial Reporting

Balance Sheet by Fund Type Lists total assets, liabilities, and equity by fund type for a given period.

Revenue & Expense by Fund Type Lists total revenue and expenses by fund type for a given period.

Receivables Management Shows total outstanding accounts receivable by age.

Open Task Order Schedule Shows SAWPA’s total outstanding obligation for open task orders.

Debt Service Funding Analysis Shows total annual income by source used to make debt service payments through debt maturity at FYE 2022.

Debt Service Payment Schedule Shows total debt service interest and principal payments through debt maturity at FYE 2022.

Cash and Investments

Total Cash and Investments (chart) Shows the changes in cash and investments for the fiscal year.

Reserve Balance & Source of Funds Shows total cash and investments for all SAWPA funds and the types of investments held for each fund.

Cash & Investments (pie chart) Shows total cash and investments for all SAWPA funds and the percentage of each investment type.

Reserve Account Analysis Shows changes to each reserve account for the year and projected ending balance for each.

Twelve Month Security Schedule (chart)

Shows the maturity dates for securities held and percentage of securities in each category.

Treasurer’s Report Shows book and market value for both Treasury strips and securities held by the Agency.

177

CM#8946 November 18, 2014 Page 2 Performance Indicators

Average Daily Flow by Month Shows total flow in the SARI System by month compared to total treatment capacity owned. This is an indicator of the available capacity in the line. As we add yearly flows, it will show trends in flow throughout the year.

Summary of Labor Multipliers Summarizes the information generated from the following two reports and compares the actual benefit and G&A Allocation rates to the total budgeted rates.

General Fund Costs Lists total Fund No. 100 costs to date and the amount of those costs recovered through the G&A Allocation and member contributions.

Benefit Summary Lists total employee benefit costs actual to budget and projects them through the end of the year. This report compares how the actual benefit rate compares to the budgeted rate.

Labor Hours Budget vs. Actual Shows total budgeted hours for each project and compares them to the actual hours charged to each.

RESOURCE IMPACTS Staff expects minimal impacts to SAWPA or its member agencies related to this effort. Attachments: 1. Balance Sheet by Fund Type 9. Reserve Account Analysis 2. Revenue & Expense by Fund Type 10. Twelve-Month Maturity Schedule - Securities 3. Accounts Receivable Aging Report 11. Treasurer’s Report 4. Open Task Order Schedule 12. Average Daily Flow by Month 5. Debt Service Funding Analysis 13. Summary of Labor Multipliers 6. Debt Service Payment Schedule 14. General Fund Costs 7. Total Cash and Investments (chart) 15. Benefits 8. Reserve Balance & Source of Funds 16. Labor Hours Budgeted vs. Actual CM 8946 Perform Indicators Sep'14

178

CapitalProjects

Grants/Contracts Planning

CollaborativeProjects

SAWPAGeneral

Brine LineEnterprise

FundTotals

Assets

Current AssetsCash and Investments ($108,877.80) $440,688.94 $424,379.14 $1,834,208.64 $3,209,235.39 $53,393,020.32 $59,192,654.63Accounts Receivable 0.00 76,132.16 100,000.01 155,867.00 23,137.19 1,653,824.01 2,008,960.37Installment Notes Receivable 0.00 0.00 0.00 0.00 0.00 9,307,461.94 9,307,461.94Interest Receivable 0.00 0.00 0.00 0.00 0.00 68,771.49 68,771.49Prepaids and Deposits 0.00 0.00 0.00 0.00 401,749.45 144,271.52 546,020.97

Total Current Assets (108,877.80) 516,821.10 524,379.15 1,990,075.64 3,634,122.03 64,567,349.28 71,123,869.40

Fixed AssetsProperty, Plant & Equipment

less accum depreciation 0.00 0.00 0.00 0.00 1,242,357.78 72,001,996.99 73,244,354.77Work In Process 793,699.37 0.00 0.00 0.00 0.00 0.00 793,699.37

Total fixed assets 793,699.37 0.00 0.00 0.00 1,242,357.78 72,001,996.99 74,038,054.14

Other AssetsWastewater treatment/disposal

rights, net of amortization 0.00 0.00 0.00 0.00 1,969.98 33,020,843.28 33,022,813.26Inventory - Mitigation Credits 0.00 0.00 0.00 1,930,560.00 0.00 0.00 1,930,560.00

Total Other Assets 0.00 0.00 0.00 1,930,560.00 1,969.98 33,020,843.28 34,953,373.26

Total Assets $684,821.57 $516,821.10 $524,379.15 $3,920,635.64 $4,878,449.79 $169,590,189.55 $180,115,296.80Liabilities and Fund EquityCurrent Liabilities

Accounts Payable/Accrued Expenses $71,494.49 $44,760.08 $2,804.79 $36,224.03 $508,776.39 $2,575,714.55 $3,239,774.33Accrued Interest Payable 0.00 0.00 0.00 0.00 0.00 409,078.33 409,078.33Customer Deposits 0.00 443,243.32 0.00 0.00 0.00 0.00 443,243.32

Noncurrent LiabilitiesLong-term Debt 0.00 0.00 0.00 0.00 0.00 27,549,402.70 27,549,402.70Deferred Revenue 0.00 0.00 0.00 0.00 0.00 80,249,749.50 80,249,749.50Total Liabilities 71,494.49 488,003.40 2,804.79 36,224.03 508,776.39 110,783,945.08 111,891,248.18

Fund EquityContributed Capital 0.00 0.00 0.00 0.00 0.00 20,920,507.03 20,920,507.03Retained Earnings 616,306.29 49,919.25 (30,662.28) 3,600,557.84 3,577,046.29 37,862,295.01 45,675,462.40Revenue Over/Under Expenditures (2,979.21) (21,101.55) 552,236.64 283,853.77 792,627.11 23,442.43 1,628,079.19

Total Fund Equity 613,327.08 28,817.70 521,574.36 3,884,411.61 4,369,673.40 58,806,244.47 68,224,048.62

Total Liabilities & Fund Equity $684,821.57 $516,821.10 $524,379.15 $3,920,635.64 $4,878,449.79 $169,590,189.55 $180,115,296.80

Santa Ana Watershed Project AuthorityBalance Sheet by Fund Type

For the Two Months Ending Sunday, August 31, 2014

179

CapitalProjects

Grants/Contracts Planning

CollaborativeProjects

SAWPAGeneral

Brine LineEnterprise

FundTotals

Operating RevenueDischarge Fees $0.00 $0.00 $0.00 $0.00 $0.00 $1,603,780.29 $1,603,780.29Grant Proceeds 0.00 0.00 (0.01) 0.00 0.00 0.00 (0.01)Financing Proceeds 0.00 25,279.65 0.00 0.00 0.00 0.00 25,279.65

Total Operating Revenue 0.00 25,279.65 (0.01) 0.00 0.00 1,603,780.29 1,629,059.93

Operating ExpensesLabor 975.38 15,317.44 41,903.52 11,483.50 222,485.41 132,831.17 424,996.42Benefits 447.70 7,030.70 19,233.71 5,270.92 73,316.54 60,969.53 166,269.10G&A Allocation 1,530.37 24,033.06 65,746.62 18,017.60 0.00 208,412.09 317,739.74Education & Training 0.00 0.00 0.00 0.00 817.33 94.00 911.33Consulting & Professional Services 0.00 0.00 2,535.00 43,852.73 41,090.00 46,156.63 133,634.36Operating Costs 0.00 0.00 0.00 0.00 690.95 497,845.21 498,536.16Repair & Maintenance 0.00 0.00 0.00 0.00 37,605.62 20,008.65 57,614.27Phone & Utilities 0.00 0.00 0.00 0.00 10,276.41 1,300.53 11,576.94Equipment & Computers 0.00 0.00 0.00 0.00 50,804.75 4,019.05 54,823.80Meeting & Travel 25.76 0.00 769.12 64.48 2,568.52 406.74 3,834.62Other Administrative Costs 0.00 10,000.00 75.38 0.00 12,477.18 7,004.37 29,556.93Benefits Applied 0.00 0.00 0.00 0.00 11,017.15 0.00 11,017.15G&A Applied 0.00 0.00 0.00 0.00 (339,015.28) 0.00 (339,015.28)Other Expenses 0.00 0.00 0.00 0.00 5,686.39 22,061.79 27,748.18

Total Operating Expenses 2,979.21 56,381.20 130,263.35 78,689.23 129,820.97 1,001,109.76 1,399,243.72

Operating Income (Loss) (2,979.21) (31,101.55) (130,263.36) (78,689.23) (129,820.97) 602,670.53 229,816.21

Nonoperating Income (Expense)Member Contributions 0.00 10,000.00 682,500.00 159,239.00 942,950.00 0.00 1,794,689.00Other Agency Contributions 0.00 0.00 0.00 203,304.00 0.00 0.00 203,304.00Interest Income 0.00 0.00 0.00 0.00 0.00 14,729.76 14,729.76Interest Expense - Debt Service 0.00 0.00 0.00 0.00 0.00 (220,843.87) (220,843.87)Other Income 0.00 0.00 0.00 0.00 40.98 (0.50) 40.48Use of Reserves 0.00 0.00 0.00 0.00 (15,847.95) 0.00 (15,847.95)

Total Nonoperating Income (Expense) 0.00 10,000.00 682,500.00 362,543.00 927,143.03 (206,114.61) 1,776,071.42

Excess Rev over (under) Exp ($2,979.21) ($21,101.55) $552,236.64 $283,853.77 $797,322.06 $396,555.92 $2,005,887.63


For the Two Months Ending Sunday, August 31, 2014

180

Aging ReportSanta Ana Watershed Project AuthorityReceivables as of November 3, 2014

Customer Name Project Total Current 0-30 Days 31-60 Days 61 and Over

Chino Basin Desalter Authority Brine Line 134,847.68 134,847.68 Department of Water Resources Prop 84 1,238,787.52 21,668.17 1,217,119.35 DR Horton Brine Line 493.72 493.72 Eastern Municipal Water District Brine Line 145,590.38 145,590.38 Inland Empire Utilities Agency Brine Line 248,722.73 117,272.46 131,450.27 Orange County Water District Member Agency Contributions 23,000.00 23,000.00 San Bernardino Valley Municipal Water District Brine Line 189,877.51 61,932.74 127,944.77 Western Municipal Water District Brine Line 288,231.68 288,231.68

Total Accounts Receivable 2,269,551.22 - - 769,543.11 1,500,008.11

181


182

Task Order No. Vendor No. Vendor Name Task Description Begin Date End Date Original Contract Change Orders Total Contract Billed To Date Contract Balance SAWPA ManagerProject Contracts

WO#2015-03 1872 Calvada Surveying Inc On-Call Survey Services 6/27/2014 6/30/2015 28,250.00$ -$ 28,250.00$ -$ 28,250.00$ Carlos Quintero

CARO240-02 1508 Carollo Engineers 2014 Financial Planners Update 8/15/2014 12/31/2014 15,000.00$ -$ 15,000.00$ -$ 15,000.00$ David Ruhl

CDM384-11 1575 CDM Smith Tech Support to Implement CBRP 7/8/2013 6/30/2014 69,854.00$ 32,112.00$ 101,966.00$ 101,952.02$ 13.98$ Rick Whetsel

CDM384-12 1575 CDM Smith MSAR TMDL Support 7/3/2013 6/30/2015 158,395.00$ -$ 158,395.00$ 91,011.74$ 67,383.26$ Rick Whetsel

CDM386-09 1575 CDM Smith Additional Support for BPA 6/20/2013 11/30/2013 29,578.00$ -$ 29,578.00$ 29,557.56$ 20.44$ Larry McKenney

CDM386-10 1575 CDM Smith Additional Support for BPA Adoption Process 7/23/2013 3/30/2014 47,031.00$ -$ 47,031.00$ 42,901.87$ 4,129.13$ Larry McKenney

DUDK240-01 1969 Dudek Pretreatment Program- OCSD Audit Response 11/30/2012 6/30/2013 20,000.00$ -$ 20,000.00$ 17,575.37$ 2,424.63$ Rich Haller

DUDK240-02 1969 Dudek Pretreatment Program- Evaluation 1/18/2013 12/31/2013 60,000.00$ -$ 60,000.00$ 58,912.62$ 1,087.38$ Rich Haller

DUDK240-03 1969 Dudek Pretreatment Program- Evaluation 8/29/2013 12/31/2013 10,000.00$ -$ 10,000.00$ 840.00$ 9,160.00$ Rich Haller

DUDK326-01 1969 Dudek BL Reach V Rehabilitation and Improvement 9/27/2013 12/31/2014 381,218.00$ -$ 381,218.00$ 305,203.89$ 76,014.11$ David Ruhl

WO#2015-04 1404 E S Babcock Inc Wastewater Sample Collection and Analysis 6/27/2014 6/30/2015 40,402.00$ -$ 40,402.00$ 4,383.00$ 36,019.00$ Carlos Quintero

ENFO240-01 2002 enfoTech Data Management System 8/15/2013 8/31/2014 229,085.00$ -$ 229,085.00$ 229,085.00$ -$ Carlos Quintero

EOA240-01 1999 EOA Inc (Eisenberg Olivieri & Associates) Remedial Plan Implementation 8/5/2013 3/30/2014 45,000.00$ 30,000.00$ 75,000.00$ 66,128.74$ 8,871.26$ Rich Haller

G&G240-13 1222 G & G Environmental Compliance Inc Brine Line System O & M- Permitting & Pretreatment Program 6/25/2012 6/30/2013 77,090.00$ -$ 77,090.00$ 39,132.93$ 37,957.07$ Rich Haller

WO#2015-05 1349 Haz Mat Trans Inc On-Call Line Cleaning Services 7/1/2014 6/30/2015 28,793.00$ -$ 28,793.00$ 4,259.65$ 24,533.35$ Carlos Quintero

WO#2015-06 1349 Haz Mat Trans Inc On-Call Line Draining and Emergency Clean Up Services 7/1/2014 6/30/2015 38,643.00$ -$ 38,643.00$ 5,028.50$ 33,614.50$ Carlos Quintero

HDR320-03-01 1280 HDR Engineering Inc Upper Reach IV-A 7/25/2012 6/30/2013 25,000.00$ -$ 25,000.00$ 9,960.81$ 15,039.19$ David Ruhl

HDR320-03-02 1280 HDR Engineering Inc Upper Reach IV-A 4/24/2013 6/30/2014 25,000.00$ -$ 25,000.00$ 15,372.38$ 9,627.62$ David Ruhl

WO#2015-08 1654 Hoffman Southwest Corporation On-Call CCTV Services 7/17/2014 6/30/2015 40,000.00$ -$ 40,000.00$ 526.16$ 39,473.84$ Carlos Quintero

WO#2015-01 1450 Innerline Engineering On-Call Cleaning Services 7/15/2014 6/30/2015 375,000.00$ -$ 375,000.00$ -$ 375,000.00$ Carlos Quintero

WO#2015-23 1450 Innerline Engineering Reach 4B Mitigation Site - Irrigation Support 7/15/2014 8/31/2014 1,980.00$ -$ 1,980.00$ -$ 1,980.00$ Carlos Quintero

K&SI320-03-03 1119 Krieger & Stewart Brine Line Protection Plan 2/28/2014 6/30/2014 10,000.00$ 10,000.00$ 20,000.00$ 11,364.48$ 8,635.52$ David Ruhl

WO#2015-07 1873 Natures Image Right of Way Maintenance 8/13/2014 6/30/2015 18,188.00$ -$ 18,188.00$ -$ 18,188.00$ Carlos Quintero

WO#2015-25 2010 New Pipe America Construction Reach 4A MAS Corrosion Protection 7/25/2014 12/13/2014 17,275.00$ -$ 17,275.00$ 8,011.00$ 9,264.00$ Carlos Quintero

RISK374-04 1174 Risk Sciences Support Basin Monitoring Program TF 10/16/2013 6/30/2015 49,950.00$ -$ 49,950.00$ 20,532.47$ 29,417.53$ Mark Norton

RISK384-07 1174 Risk Sciences MSAR TMDL Task Force 6/25/2013 6/30/2015 44,080.00$ -$ 44,080.00$ 22,400.41$ 21,679.59$ Rick Whetsel

RISK386-09 1174 Risk Sciences Additional Technical Support for BPA 6/25/2013 6/30/2014 37,900.00$ -$ 37,900.00$ 36,640.56$ 1,259.44$ Larry McKenney

RMC326-01 1980 RMC Water & Environment Compaction Testing 12/31/2012 12/31/2013 100,000.00$ -$ 100,000.00$ 98,435.51$ 1,564.49$ David Ruhl

SAWA323-01 1420 Santa Ana Watershed Association Habitat Mitigation in Prado Basin 1/29/2010 12/31/2016 245,000.00$ -$ 245,000.00$ 194,325.03$ 50,674.97$ Carlos Quintero

SAWA387-04 1420 Santa Ana Watershed Association Plant Control & Biological Monitoring 6/28/2012 12/31/2015 165,000.00$ 108,780.00$ 273,780.00$ 59,070.57$ 214,709.43$ Ian Achimore

WO#2015-22 2006 Source Molecular MSAR TMDL Sample Analysis 7/15/2014 6/30/2015 15,000.00$ -$ 15,000.00$ -$ 15,000.00$ Rick Whetsel

SKRZ373-01 1938 Elizabeth Jane Skrzat Social Media & Outreach Program 7/17/2013 10/31/2014 20,350.00$ -$ 20,350.00$ 18,110.00$ 2,240.00$ Mark Norton

SKRZ392-03 1938 Elizabeth Jane Skrzat EC PR Blog Support 9/2/2014 6/30/2015 34,452.00$ -$ 34,452.00$ -$ 34,452.00$ Mark Norton


As of September 2014Open Task Orders Schedule

183

Task Order No. Vendor No. Vendor Name Task Description Begin Date End Date Original Contract Change Orders Total Contract Billed To Date Contract Balance SAWPA ManagerProject Contracts


As of September 2014Open Task Orders Schedule

SKRZ392-02 1938 Elizabeth Jane Skrzat EC PR Blog Support 9/9/2013 10/31/2014 36,000.00$ -$ 36,000.00$ 33,118.79$ 2,881.21$ Mark Norton

TKE240-01 1995 TKE Engineering & Planning Brine Line Pretreatment Program 5/29/2013 6/30/2014 25,000.00$ -$ 25,000.00$ 16,480.00$ 8,520.00$ Rich Haller

PO2934 1961 Trench Shoring Inc Steel Plate Rental 6/26/2014 6/30/2015 2,000.00$ -$ 2,000.00$ -$ 2,000.00$ Carlos Quintero

TRU240-08 1915 Trussell Technologies Inc Phase # 3 Ongoing Water Quality Monitoring & Analysis 8/17/2012 6/30/2013 21,884.00$ -$ 21,884.00$ 21,868.17$ 15.83$ Rich Haller

TRU240-09 1915 Trussell Technologies Inc County Line Sampling System 7/30/2013 12/31/2013 10,000.00$ -$ 10,000.00$ 7,143.29$ 2,856.71$ Rich Haller

TRU240-10 1915 Trussell Technologies Inc Evaluation of New S01 Station Sampling System 7/14/2014 12/31/2014 17,655.00$ -$ 17,655.00$ 17,655.00$ -$ Rich Haller

TRU240-11 1815 Trussell Technologies Inc Ongoing Water Quality Monitoring and Analysis 7/14/2014 6/30/2015 31,488.00$ -$ 31,488.00$ 8,046.50$ 23,441.50$ Rich Haller

VALI326-01 2034 Vali Cooper & Associates Inc Brine Line Reach V Rehabilitation & Improvements 6/25/2014 12/31/2014 22,520.00$ -$ 22,520.00$ 15,260.00$ 7,260.00$ David Ruhl

WO#2015-30 1819 Wayne Perry Inc On-call Potholing Services 9/5/2014 6/30/2015 34,562.50$ -$ 34,562.50$ -$ 34,562.50$ Carlos Quintero

WO#2015-02 1217 Western Municipal Water District Brine Line Operations & Maintenance 6/30/2014 6/30/2015 241,381.00$ -$ 241,381.00$ 7,646.36$ 233,734.64$ David Ruhl

WILD374-08 1281 Wildermuth Environmental Inc Addendum - 2008 SAR Wasteload Allocation Model 1/27/2014 11/30/2014 80,000.00$ -$ 80,000.00$ 45,415.93$ 34,584.07$ Mark Norton

YEAG373-03 1591 Yeager Environmental LLC OWOW 2.0 Support Services 11/23/2013 6/30/2014 24,740.00$ -$ 24,740.00$ 9,660.00$ 15,080.00$ Mark Norton

Annual Support Contracts

ACS100-06 1842 Accent Computer Solutions Support for Ongoing IT Projects 7/31/2014 6/30/2015 27,000.00$ -$ 27,000.00$ 4,147.50$ 22,852.50$ Dean Unger

TDGI10000-17 1326 The Dolphin Group Legislative & Government Relations Consulting 7/7/2014 6/30/2015 115,000.00$ -$ 115,000.00$ 42,500.00$ 72,500.00$ Celeste Cantú

INSOL100-06 1648 Integrated Systems Solutions GP Software- Technical Support 8/15/2014 6/30/2015 5,000.00$ -$ 5,000.00$ 82.50$ 4,917.50$ Dean Unger

KON100-02 1147 Konica Minolta Business Solutions USA Inc OnBase System Support 9/23/2014 6/30/2015 10,000.00$ -$ 10,000.00$ -$ 10,000.00$ Dean Unger

KON100-01 1147 Konica Minolta Business Solutions USA Inc OnBase Support and Migration 8/14/2013 6/30/2014 10,000.00$ 13,500.00$ 23,500.00$ 20,761.25$ 2,738.75$ Dean Unger

WO#2015-10 1544 County of Riverside Gas for Vehicles 6/26/2014 6/30/2015 3,000.00$ -$ 3,000.00$ 1,218.15$ 1,781.85$ Carlos Quintero

PO2968 2038 Riverside Transmission Center Agency Vehicle Maintenance - Oil Change, Air Filter 7/24/2014 6/30/2015 1,000.00$ -$ 1,000.00$ 149.68$ 850.32$ Carlos Quintero

WO#2015-10 1890 Southern California Fleet Services Inc Agency Vehicle Maintenance 7/1/2014 6/30/2015 5,000.00$ -$ 5,000.00$ -$ 5,000.00$ Carlos Quintero

WCD100-02 1674 Web Casa Design Website Redesign Support 8/13/2013 6/30/2014 5,000.00$ -$ 5,000.00$ 1,105.00$ 3,895.00$ Dean Unger

WCD100-03 1674 Web Casa Design Website Update and Support 8/15/2014 6/30/2015 2,900.00$ -$ 2,900.00$ 1,500.00$ 1,400.00$ Dean Unger

WNDE100-02 1449 White Nelson Diehl Evans LLC SAWPA Auditing Services 8/4/2014 6/30/2015 25,100.00$ -$ 25,100.00$ 14,400.00$ 10,700.00$ Karen Williams

1,694,256.11$

184

Santa Ana Watershed Project AuthorityBrine Line Debt Service Funding Analysis

September 30, 2014

FYE T-Strip Capacity Rates Loan Pymts Interest Earned * Ending CashMaturity (a) Loan Receipts (b) © ( d ) (e) Excess Cash Balance

Beginning Balance 3,813,182 2014 2,449,000 795,772 998,000 (4,578,510) 76,264 (259,475) 3,553,707 2015 2,349,000 795,772 1,034,000 (4,461,810) 71,074 (211,964) 3,341,743 2016 1,824,000 795,772 1,034,000 (4,055,340) 66,835 (334,733) 3,007,010 2017 949,000 795,772 1,034,000 (3,060,725) 60,140 (221,812) 2,785,198 2018 949,000 795,772 1,034,000 (3,060,725) 55,704 (226,249) 2,558,949 2019 395,000 528,582 1,034,000 (2,526,801) 51,179 (518,040) 2,040,909 2020 395,000 - 1,034,000 (2,170,551) 40,818 (700,733) 1,340,177 2021 395,000 - 1,034,000 (2,170,551) 26,804 (714,747) 625,429 2022 395,000 - 1,034,000 (1,943,236) 12,509 (501,728) 123,702 2023 - - 1,034,000 (1,044,273) 2,474 (7,799) 115,903 2024 - - 1,034,000 (1,044,273) 2,318 (7,955) 107,947 2025 - - 1,034,000 (1,044,273) 2,159 (8,114) 99,833 2026 - - 1,034,000 (1,044,273) 1,997 (8,277) 91,557 2027 - - 1,034,000 (1,044,273) 1,831 (8,442) 83,114 2028 - - 1,034,000 (1,044,273) 1,662 (8,610) 74,504 2029 - - 1,034,000 (1,044,273) 1,490 (8,783) 65,721 2030 - - 1,034,000 (1,044,273) 1,314 (8,959) 56,762 2031 - - 1,034,000 (1,044,273) 1,135 (9,138) 47,624 2032 - - 1,034,000 (1,044,273) 952 (9,321) 38,303 2033 - - 1,034,000 (1,044,273) 766 (9,507) 28,796

10,100,000 4,507,442 20,644,000 (39,515,253) 479,425 (3,784,385) 28,796

*Interest earned is based on a conservative 2.00% average return over the period

185

Santa Ana Watershed Project AuthorityDebt Service Payment Schedule

FY 2014 - 2033

RemainingFYE Interest Principal Total Payment Principal2014 917,806 3,660,704 4,578,510 29,125,074 2015 827,925 3,633,884 4,461,810 25,491,190 2016 716,452 3,338,888 4,055,340 22,152,302 2017 615,366 2,445,358 3,060,725 19,706,943 2018 539,727 2,520,997 3,060,725 17,185,946 2019 461,459 2,065,342 2,526,801 15,120,604 2020 395,403 1,775,147 2,170,551 13,345,456 2021 348,294 1,822,257 2,170,551 11,523,199 2022 299,932 1,643,304 1,943,236 9,879,895 2023 256,877 787,396 1,044,273 9,092,499 2024 236,405 807,868 1,044,273 8,284,631 2025 215,400 828,873 1,044,273 7,455,758 2026 193,850 850,424 1,044,273 6,605,335 2027 171,739 872,535 1,044,273 5,732,800 2028 149,052 895,220 1,044,273 4,837,580 2029 125,777 918,496 1,044,273 3,919,084 2030 101,896 942,377 1,044,273 2,976,707 2031 77,394 966,879 1,044,273 2,009,828 2032 52,256 992,018 1,044,273 1,017,810 2033 26,463 1,017,810 1,044,273 (0)

$0

$1

$2

$3

$4

$5

$6

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

Mill

ions

Debt Service Payment ScheduleFiscal Years 2014-2033

Principal

Interest

186

$57$58

$59

$59$58$58 $58

$57 $56 $56

$59$59

$41

$46

$51

$56

$61

$66

$71

Sep'13 Oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Mar'14 Apr'14 May'14 Jun'14 Jul'14 Aug'14

Millions

Total Cash & Investments

187

Checking Money CalTRUST LAIF Savings Investment Certificates Treasury Grant(Cash) Market Investments Account EPA Securities of Deposit Strips Retention

100 General Fund 2,441,840$ 458,328 - - 1,983,512 - - - - - 2,441,840$ 100 Building Reserve 680,133$ - - - 680,133 - - - - - 680,133$ 370 Basin Planning General 315,019$ - - - 315,019 - - - - - 315,019$ 370 USBR Partnership Studies 14,883$ - - - 14,883 - - - - - 14,883$ 387 Mitigation Bank Credits 1,183,814$ - - - 1,183,814 - - - - - 1,183,814$ 240 Self Insurance Reserve 3,551,700$ - - - 3,551,700 - - - - - 3,551,700$ 240 Brine Line Debt Retirement 10,020,992$ - - - - - 3,305,720 - 6,715,272 - 10,020,992$ 240 Brine Line - Pipeline Replacement 24,146,152$ - 63,323 2,123,850 17,709,919 - 1,756,125 2,492,935 - - 24,146,152$ 240 Brine Line - OCSD Rehabilitation 5,654,407$ - - - 5,654,407 - - - - - 5,654,407$ 240 Brine Line - Capacity Management 4,855,805$ - - - 4,855,805 - - - - - 4,855,805$ 240 Brine Line - OCSD Future Capacity 1,697,545$ - - - 1,697,545 - - - - - 1,697,545$ 240 Brine Line - Flow Imbalance Reserve 69,179$ - - - 69,179 - - - - - 69,179$ 240 Brine Line - Operating Reserve 2,429,652$ - - - 2,429,652 - - - - - 2,429,652$ 401 Legal Defense Fund 443,243$ - - - - 443,243 - - - - 443,243$ 373 Watershed Management Plan 93,056$ - - - 93,056 - - - - 93,056$ 372 Imported Water Recharge 35,219$ - - - 35,219 - - - - - 35,219$ 374 Basin Monitoring Program TF 123,257$ - - - 123,257 - - - - - 123,257$ 384 Middle SAR TMDL TF 216,308$ - - - 216,308 - - - - - 216,308$ 386 Storm WQ Standards TF 103,327$ - - - 103,327 - - - - - 103,327$ 381 SAR Fish Conservation 45,742$ - - - 45,742 - - - - - 45,742$ 392 Emerging Constituents TF 177,875$ - - - 177,875 - - - - - 177,875$ 500 Prop 13 - Grant Retention 44,760$ - - - - - - - - 44,760 44,760$

58,343,908$ 458,328$ 63,323$ 2,123,850$ 40,940,353$ 443,243$ 5,061,845$ 2,492,935$ 6,715,272$ 44,760$ 58,343,908$

RESERVE BALANCE & SOURCE OF FUNDSSeptember 30, 2014

Reserve Accounts Cash and Investments

Total Total

188

T‐Strips, $6,715,272, 11%

Savings ‐ EPA, $443,243, 1%

LAIF, $40,940,353, 70%

Securities, $5,061,845, 9%

Certificates of Deposit, $2,492,935, 4%

CalTRUST Investments, $2,123,850, 4% Money Market Funds,

$63,323, 0%

Grant Retention, $44,760, 0%

Checking Accounts, $458,328, 1%

Cash & Investments ‐ September 2014$58,343,908

189

Santa Ana Watershed Project AuthorityReserve Account Analysis

September 30, 2014

Estimated Balance @ Interest Fund Loan/T-Strip Debt Service Inter-Fund Fund Balance @ Fund Balance @

Reserve Account 6/30/2014 Earned Contributions Receipts Payments Loans Expenses 9/30/2014 Changes 6/30/2015

Brine Line Operating Reserve 2,000,562 1,411 2,171,193 (1,743,514) 2,429,652 - 2,270,849 Flow Imbalance Reserve 69,132 47 69,179 - 79,028 OCSD Future Capacity 1,696,440 1,105 1,697,545 - 709,805 Capacity Management 4,472,847 2,305 380,653 4,855,805 - 1,660,192 Pipeline Replacement 24,252,200 5,673 149,180 (260,900) 24,146,152 (5,596,421) 18,549,732 OCSD Rehabilitation 5,400,890 3,517 250,000 5,654,407 750,000 6,404,407 Debt Retirement 3,489,522 2,235 258,500 795,772 (1,240,309) 3,305,720 (1,986,365) 1,319,355 Self Insurance 3,524,413 2,287 25,000 3,551,699 75,000 3,626,699 General Fund 1,708,063 1,180 962,233 (51,012) (178,624) 2,441,840 - 2,441,840 Building Reserve 611,132 398 68,602 - 680,133 - 680,133

46,325,606 20,157 4,265,360 795,772 (1,240,309) (51,012) (2,183,038) 48,832,131 (6,757,786) 37,742,039

190

$0$200,000$400,000$600,000$800,000

$1,000,000$1,200,000$1,400,000$1,600,000$1,800,000$2,000,000$2,200,000$2,400,000$2,600,000$2,800,000$3,000,000

< 1 YR 1 to 2 YRS 2 to 3 YRS 3 to 4 YRS 4 to 5 YRS

Twelve Month Maturity ScheduleSecurities

10%

23%

37%

13%

17%

191

SAWPATREASURER'S REPORT

As of September 2014

Investment T-Strips Safekeeping CBB

Purchase Maturity Initial Current Book Market Interest

T-STRIPS Debt Date Date PAR Cost Discount Discount Value Value RateBAIS SARI 04/13/1995 11/15/2015 2,275,000.00 513,017.75 1,761,982.25 243,031.18 2,031,968.82 2,272,859.75 7.61%

CBB WEST RIV 07/09/1999 11/15/2017 1,336,000.00 469,227.00 866,773.42 198,546.77 1,137,453.23 1,317,786.98 6.33%

CBB WEST RIV 07/12/1999 05/15/2018 880,000.00 298,021.00 581,979.20 146,227.87 733,772.13 861,617.60 4.24%

CBB TVRI 02/11/2000 05/15/2020 2,370,000.00 773,832.65 1,596,167.35 478,511.48 1,891,488.52 2,262,670.60 4.83%

6,861,000.00$ 2,054,098.40$ 4,806,902.22$ 1,066,317.30$ 5,794,682.70 6,714,934.93$ 5.75%

Investment Commercial Safekeeping CBB

Purchase Maturity Unit Current Market Interest

Type Security Date Date Cost Cost Principal Value Value RateAgency FHLB 3/29/2011 3/13/2015 103.30 516,505.00$ 500,000.00$ 500,000.00$ 505,910.00 2.75%Agency FHLMC 3/27/2014 3/27/2019 109.33 546,650.00$ 500,000.00$ 500,000.00$ 541,420.00 3.75%Agency FHLMC 6/10/2014 3/8/2017 100.69 1,006,919.00$ 1,000,000.00$ 1,000,000.00$ 1,002,830.00 1.00%Agency FNMA 3/27/2014 2/19/2019 100.40 501,975.00$ 500,000.00$ 500,000.00$ 501,445.00 1.88%Agency FNMA 3/8/2013 2/14/2018 100.00 1,000,000.00$ 1,000,000.00$ 1,000,000.00$ 998,300.00 1.75%Agengy FNMA 3/27/2013 3/27/2018 100.00 1,000,000.00$ 1,000,000.00$ 1,000,000.00$ 982,080.00 1.00%Agency USTN 1/26/2011 7/31/2015 99.84 499,218.75$ 500,000.00$ 500,000.00$ 506,835.00 1.75%CD Discover 3/6/2013 3/6/2017 100.00 250,000.00$ 250,000.00$ 250,000.00$ 249,549.80 0.95%CD Goldman Sachs 3/6/2013 3/7/2016 100.00 250,000.00$ 250,000.00$ 250,000.00$ 250,625.71 0.75%CD American Express 3/7/2013 3/7/2016 100.00 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00 0.75%CD Ally Bank 4/17/2013 4/18/2016 100.00 250,000.00$ 250,000.00$ 250,000.00$ 250,144.29 0.65%CD CIT Bank 3/13/2013 3/13/2018 100.00 248,000.00$ 248,000.00$ 248,000.00$ 245,005.51 1.10%CD BMW Bank 3/8/2013 3/8/2017 100.00 248,000.00$ 248,000.00$ 248,000.00$ 246,948.63 0.85%CD GE Capital Bank 1/31/2014 1/31/2017 100.00 248,000.00$ 248,000.00$ 248,000.00$ 247,859.38 1.00%CD GE Capital Retail 1/31/2014 1/31/2018 100.00 248,000.00$ 248,000.00$ 248,000.00$ 247,956.16 1.45%CD National Bank of NY 6/18/2014 6/18/2018 100.00 248,000.00$ 248,000.00$ 248,000.00$ 245,753.09 1.30%CD Key Bank 3/13/2013 3/13/2015 100.00 250,000.00$ 250,000.00$ 250,000.00$ 250,261.63 0.45%

7,561,267.75$ 7,490,000.00$ 7,490,000.00$ 7,522,924.20

192

Santa Ana Watershed Project AuthorityTreasurer's Report

As of September 30, 2014

Investment T-Strips Issuer U.S.Gov't Banker UB Source of MV CBB

Debt Service WEST RIV.

Months to Initial Current Book Market InterestPurchase Date Maturity Date Maturity PAR Cost Discount Discount Value Value Rate

07/09/1999 11/15/2014 2 334,000.00 128,767.00 205,232.98 31,875.51 302,124.49 333,963.26 6.31%07/09/1999 11/15/2015 14 334,000.00 120,627.00 213,372.56 44,153.43 289,846.57 333,241.82 6.33%07/09/1999 11/15/2016 26 334,000.00 113,340.00 220,660.44 55,765.57 278,234.43 329,053.46 6.33%07/09/1999 11/15/2017 38 334,000.00 106,493.00 227,507.44 66,752.26 267,247.74 321,528.44 6.33%

1,336,000.00$ 469,227.00$ 866,773.42$ 198,546.77$ 1,137,453.23$ 1,317,786.98$ 6.33%

Investment T-Strips Issuer U.S.Gov't Banker UB Source of MV Union Bank

Debt Service WEST RIV.


07/12/1999 05/15/2015 8 220,000.00 81,732.00 138,267.80 25,139.60 194,860.40 219,881.20 6.35%07/12/1999 05/15/2016 20 220,000.00 76,655.00 143,345.40 33,040.29 186,959.71 218,308.20 6.36%07/12/1999 05/15/2017 32 220,000.00 72,002.00 147,998.40 40,491.20 179,508.80 214,558.00 6.36%07/12/1999 05/15/2018 44 220,000.00 67,632.00 152,367.60 47,556.78 172,443.22 208,870.20 6.36%

880,000.00$ 298,021.00$ 581,979.20$ 146,227.87$ 733,772.13 861,617.60$ 4.24%

TOTAL 2,216,000.00$ 767,248.00$ 1,448,752.62$ 344,774.64$ 1,871,225.36$ 2,179,404.58$

193

Santa Ana Watershed Project AuthorityTreasurer's Report

As of September 30, 2014

Investment T-Strips Issuer U.S.Gov't Banker BIAS Source of MV Union Bank

Debt Service SARI


04/13/1995 11/15/2014 2 1,400,000.00 325,374.00 1,074,626.00 130,326.99 1,269,673.01 1,399,846.00 7.59%04/13/1995 11/15/2015 14 875,000.00 187,643.75 687,356.25 112,704.19 762,295.81 873,013.75 7.62%

2,275,000.00$ 513,017.75$ 1,761,982.25$ 243,031.18$ 2,031,968.82$ 2,272,859.75$ 7.61%

Investment T-Strips Issuer U.S.Gov't Banker UB Source of MV CBB Debt Service TVRI


02/11/2000 05/15/2015 8 395,000.00 148,306.70 246,693.30 46,575.99 348,424.01 394,786.70 6.52%02/11/2000 05/15/2016 20 395,000.00 140,169.70 254,830.30 60,853.72 334,146.28 391,962.45 6.48%02/11/2000 05/15/2017 32 395,000.00 132,178.85 262,821.15 74,347.15 320,652.85 385,283.00 6.45%02/11/2001 05/15/2018 44 395,000.00 124,500.05 270,499.95 87,137.65 307,862.35 375,016.95 6.43%02/11/2002 05/15/2019 56 395,000.00 117,646.80 277,353.20 99,102.60 295,897.40 363,475.05 6.39%02/11/2000 05/15/2020 68 395,000.00 111,030.55 283,969.45 110,494.37 284,505.63 352,146.45 6.36%

2,370,000.00$ 773,832.65$ 1,596,167.35$ 478,511.48$ 1,891,488.52$ 2,262,670.60$ 4.83%

194

02468

101214161820

Average Daily Flow by Month

Actual

Owned

195

SUMMARY OFLABOR MULTIPLIERS

Benefit Rate

Total Employee Benefits 271,476 0.457

Total Payroll 594,449

Gross G&A Costs 713,479Less: Member Contributions & Other Revenue (170,000)G&A Costs for Distribution 543,479

G&A Rate

Direct Labor 260,732 2.084

G&A Costs 543,479

FY 2014-15 Labor multiplier - thru 9/30/14 2.541

FY 2013-14 Labor multiplier 2.105





196

Actual thru Actual thruG/L Acct. Description 9/30/14 G/L Acct. Description 9/30/14

51000 Salaries - Regular 333,717$ 60171 Equipment Rented 10,303$ 52000 Benefits 112,733$ 60172 Equipment Repair / Maintenance -$ 60111 Tuition Reimbursement -$ 60180 Computer Hardware 5,439$ 60112 Training 425$ 60181 Software / Updates / Licensing 48,667$ 60113 Education -$ 60182 Internet Services 4,055$ 60114 Other Training & Education 392$ 60183 Computer Supplies -$ 60120 Audit Fees 14,400$ 60184 Computer Repair / Maintenance -$ 60121 Consulting 39,210$ 60190 Offsite Meeting / Travel Expense 357$ 60126 Temporary Services -$ 60191 In House Meetings 104$ 60128 Other Professional Services -$ 60192 Conference Expense 1,991$ 60129 Other Contract Services -$ 60193 Car, Repair, Maint 35$ 60130 Legal Fees -$ 60200 Dues 1,895$ 60133 Employment Recruitment -$ 60202 Subscriptions 45$ 60153 Materials & Supplies -$ 60203 Contributions 6,000$ 60154 Safety 691$ 60210 Bank Charges -$ 60155 Security 339$ 60211 Shipping / Postage 63$

$ $

GENERAL FUND COSTS( to be Distributed)

60156 Custodial Contract Services 3,580$ 60212 Office Supplies 1,825$ 60157 Landscaping Maintenance 1,835$ 60213 Offsite Storage 648$ 60158 HVAC 505$ 60220 Commission Fees 2,153$ 60159 Facility Repair & Maintenance 34,905$ 60221 Commission Mileage Reimb. 997$ 60160 Telephone 4,364$ 60222 Other Commission Expense -$ 60161 Cellular / Paging Services 3,192$ 60230 Other Expense 30$ 60163 Electricity 6,126$ 80000 Retiree Medical Expense 38,354$ 60164 Water Services 1,815$ 80001 Insurance Expense 8,420$ 60170 Equipment Expensed 5,646$ 80000 Building Repair/Replacement Reserve 16,250$

13005 Fixed Assets 1,970$

Total Costs 713,479$

Direct Costs Paid by Projects 505,159$ Member Contribution Offset 170,000$ 675,159$

Over allocation % -7.1%

(Continued - next column)

197

Actual @ ProjectedG/L Acct Description Budget 9/30/14 FYE 2015

70101 FICA Expense 156,735 27,328$ 109,312$ 70102 Medicare Expense 42,607 7,669$ 30,676$ 70103 State Unemployment Insurance 6,860 707$ 2,828$ 70104 Worker's Compensation Insurance 67,425 11,619$ 46,476$ 70105 State Disability Insurance 26,907 3,738$ 14,952$ 70106 PERS Pension Plan 568,521 90,692$ 362,768$ 70111 Medical Expense 353,616 109,005$ 436,020$ 70112 Dental Expense 31,746 6,294$ 25,176$ 70113 Vision Insurance 6 348 1 585$ 6 340$

BENEFITS SUMMARY(Distributed based on Actual Labor)

70113 Vision Insurance 6,348 1,585$ 6,340$ 70114 Life Insurance Expense 15,754 2,548$ 10,192$ 70115 Long Term Disability 24,281 3,051$ 12,204$ 70116 Wellness Program Expense 3,000 340$ 1,360$ 70120 Car Allowance 30,000 6,900$ 27,600$

Total Benefits 1,333,800 271,476 1,085,904 Total Payroll 2,908,720 594,449$ 2,377,795$ Benefits Rate 45.9% 45.7% 45.7%

198

Santa Ana Watershed Project AuthorityLabor Hours Budget vs Actual

Month Ending September 30, 2014

Fund Budget Actual %

100 General & Administrative 25,572 5,914 23.12%125 Prop 50 Administration - 30 100.00%130 Prop 84 Administration 1,342 151 11.25%240 Brine Line Enterprise 17,288 4,535 26.23%320 Brine Line Protection 520 39 7.55%326 Reach V Capital Repairs 775 348 44.87%

370-01 General Basin Planning 1,990 1,096 55.09%370-02 USBR Partnership Studies 105 39 36.67%

372 Imported Water Recharge 130 2 1.54%373 Watershed Management Plan 2,160 576 26.68%374 Basin Monitoring Program 753 175 23.17%381 SAR Fish Conservation 195 65 33.08%

384-01 Chino TMDL Facilitation 200 66 32.88%386 Storm Water Quality Standards TF 230 15 6.63%387 Arundo Removal & Habitat Restoration 365 24 6.68%392 Emerging Constituents 595 42 7.02%395 UCI Research Grant - - 100.00%396 Forest First 180 - 0.00%

477TMDL LESJWA - TMDL Task Force 820 158 19.27%477-02 LESJWA - Administration 540 100 18.56%

53,760 13,374 24.88%

Note: Should be at 25% of budget for 3 months

199

Sum of Amount Expn TypeStaff Posting Date Activity Airfare Hotel Meals Mileage Misc Parking Registration Grand Total

Alice Duecker 9/23/2014 CSMFO Lunch Meeting 7/17/14 20.00 20.00Alice Duecker Total 20.00 20.00

Carlos Quintero 7/31/2014 County Inspector - El Cerrito 7/23/14 4.48 4.48Roquet Paving Site Meeting - TCR 7/25/14 4.48 4.48Traffic Control Review - City of Corona 7/22/14 6.72 6.72

8/26/2014 CWEA Exam - San Dimas 8/14/14 32.48 32.489/30/2014 Baker Street SSO - Lake Elsinore 9/23/14 20.16 20.16

Baker Street SSO - Lake Elsinore 9/24/14 6.72 6.72Baker Street SSO - Lake Elsinore 9/26/14 20.16 20.16Baker Street SSO/Babcock - Lake Elsinore 9/27/14 38.08 38.08

Carlos Quintero Total 133.28 133.28David Ruhl 7/31/2014 BL Relocation/Nichols Road - KWC Corona 7/17/14 12.32 12.32

SARI R/W Transfer to OCSD - Yorba Linda 7/1/14 23.52 23.528/31/2014 Adobe BL Relocation - Yorba Slaughter 8/27/14 10.08 10.08

Yorba Slaughter Site Visit - 8/21/14 15.68 15.689/30/2014 Adobe BL Relocation - Yorba Slaughter 9/10/14 10.08 10.08

Adobe BL Relocation - Yorba Slaughter 9/17/14 10.08 10.08Adobe BL Relocation - Yorba Slaughter 9/3/14 10.08 10.08Baker Street SSO - Lake Elsinore 9/23/14 26.88 26.88Baker Street SSO - Lake Elsinore 9/24/14 28.56 28.56Baker Street SSO - Wendy's 9/24/14 7.23 7.23RR Crossing Safety Training - GRGC Trailer 9/2/14 13.44 13.44

David Ruhl Total 7.23 160.72 167.95Dean Unger 8/28/2014 ESRI Conference, Oldenburg - Ariana 7/15/14 27.20 27.20

ESRI Conference, Oldenburg - Doubletree 7/16/14 25.00 25.00ESRI Conference, Oldenburg - Doubletree 7/16/14 312.90 312.90ESRI Conference, Unger - ACE Parking 7/15/14 15.00 15.00ESRI Conference, Unger - Doubletree 7/15/14 210.47 25.00 235.47ESRI Conference, Unger - Starbucks 7/15/14 9.00 9.00ESRI Conference, Unger - The Tin Fish 7/14/14 12.75 12.75ESRI Conference, Unger, Vitt, Oldenburg - Buon Appetito 7/14/14 77.18 77.18ESRI Conference, Unger, Vitt, Oldenburg - The Tin Fish 7/15/14 37.32 37.32ESRI Conference, Vitt - Doubletree 7/17/14 625.80 100.00 725.80Meet with McBatney, Lake Forest IT - Chronic Taco 7/9/14 19.79 19.79

Dean Unger Total 1149.17 183.24 165.00 1497.41Ian Achimore 7/15/2014 Ca Water & Env Modeling Forum - 7/7/14 21.28 21.28

Ca Water & Env Modeling Forum - Ontario Airport 7/7/14 18.00 18.00CA Water & Env Modeling Forum - SupperShuttle 7/7/14 26.00 26.00

8/31/2014 8th Annual SB Cnty Water Conf - CSUSB 8/22/14 29.90 29.90Arundo Carbon Canyon Site Visit - 7/22/14 29.46 29.46Native FW Fauna Working Group - Cal Poly 8/27/14 30.02 5.00 35.02SA River Trail Tech Advisory - Riv Cnty Parks 8/20/14 14.56 14.56SAR Watershed Budgeting Workshop - IEUA 7/17/14 9.80 9.80

Ian Achimore Total 135.02 26.00 23.00 184.02Jerry Oldenburg II 7/28/2014 ESRI Conference - San Diego 7/14/14 119.28 119.28

Santa Ana Watershed Project AuthorityStaff - Expense Report

1st Quarter FYE 2015

200

Staff Posting Date Activity Airfare Hotel Meals Mileage Misc Parking Registration Grand TotalJerry Oldenburg II Total 119.28 119.28

Jim Gusman 9/30/2014 Baker Street SSO - Farmer Boys 9/23/14 37.96 37.96Jim Gusman Total 37.96 37.96

Karen Williams 9/23/2014 CSMFO Lunch Meeting 7/17/14 20.00 20.00Karen Williams Total 20.00 20.00

Kelly Berry 8/28/2014 CalPERS Conference, Berry - 7/23/14 350.00 350.009/30/2014 Leadership Riverside Reception, Cantú - GRCC 9/4/15 30.00 30.00

Kelly Berry Total 30.00 350.00 380.00Lucas Gilbert 9/30/2014 Inspection - Stringfellow 9/29/14 23.52 23.52

Lucas Gilbert Total 23.52 23.52Mark Norton 7/10/2014 AWRA IRWM Conference - Wild Garlic 7/1/14 7.54 7.54

7/28/2014 AWRA 2014 Specialty Conference - Park N Fly 7/2/14 13.41 13.41AWRA 2014 Specialty Conference - Rosie's Café 7/1/14 14.60 14.60Ca Water & Env Modeling Forum, Achimore - CWEMEF 7/7/14 50.00 50.00CA Water & Env Modeling Forum, Achimore - SupperShuttle 7/7/14 26.00 26.00CA Water & Env Modeling Forum, Achimore - SWA 7/7/14 387.50 387.50

Mark Norton Total 387.50 22.14 76.00 13.41 499.05Michael Plasencia 8/31/2014 Inspection - City of SB Water Department 8/25/14 21.84 21.84

Inspection - Repet 8/20/14 26.88 26.88Michael Plasencia Total 48.72 48.72

Peter Vitt 7/28/2014 ESRI Conference - Ace Parking 7/17/14 15.00 15.00ESRI Conference - All-Stars BBQ 7/14/14 24.52 24.52ESRI Conference - Margaritas Kitchen 7/16/14 27.56 27.56ESRI Conference - San Diego 7/174/14 112.00 112.00

Peter Vitt Total 52.08 112.00 15.00 179.08Regina Patterson 7/31/2014 Certified Mail - USPS 7/10/14 3.92 3.92

Pick-up Lamination Sheets - Staples 7/14/14 3.92 3.92Pick-up O&M Supplies - Home Depot 7/14/14 3.36 3.36Pick-up Rubber Mats - Costco 7/11/14 3.36 3.36

Regina Patterson Total 14.56 14.56Rich Haller 7/28/2014 WMWD Mgmt Transition Meeting - Cactus Catina 7/1/14 55.28 55.28

8/28/2014 Welcome Plasencia - Farmer Boys 7/21/14 42.75 42.759/30/2014 Meet with Craig Parker - Carino's Eastvale 8/27/14 32.52 32.52

Rich Haller Total 130.55 130.55Grand Total 387.50 1149.17 473.20 747.10 132.00 216.41 350.00 3455.38

201

Staff Celeste Cantú

Sum of Amount Expn TypePosting Date Activity Airfare Hotel Meals Misc Parking Grand Total

07/01/14 Sacramento Trip - Taxi (2 trips) 6/19/14 59.00 59.0007/01/14 Total 59.00 59.00

08/28/14 ACWA Regulatory Summit - SWA 7/21/14 56.10 56.10Cal Economic Summit, Capitol Day - SWA 7/7/14 106.50 106.50CASA Annual Conference - Alaska Airlines 7/7/14 208.00 208.00Meet with State Board, Others - Centro Basco 7/24/14 77.20 77.20

08/28/14 Total 370.60 77.20 447.8009/30/14 ACWA Regulatory Summit - ARCO 8/14/14 22.77 22.77

ACWA Regulatory Summit - Enterprise 8/14/14 82.37 82.37ACWA Regulatory Summit - Lake Tahoe Resort 8/14/14 147.57 15.00 162.57ACWA Regulatory Summit - Ontario Airport 8/14/14 18.00 18.00AEP Conference - SWA 9/6/14 152.10 152.10Cal Economic Summit - ARCO 8/14/14 11.38 11.38Cal Economic Summit - Citizens Hotel 8/13/14 321.00 25.00 346.00Cal Economic Summit - Enterprise 8/14/14 41.18 41.18Cal Economic Summit - Grange Restaurant 8/12/14 11.47 11.47Cal Economic Summit - Ontario Airport 8/14/14 36.00 36.00CASA Annual Conference - Alaska Airlines 8/21/14 191.20 191.20CASA Annual Conference - G12 GNG 8/21/14 7.67 7.67CASA Annual Conference - Marriott 8/23/14 259.00 259.00CASA Annual Conference - San Diego Airport 8/23/14 18.00 18.00International Water Assoc Conference - SWA 89/19/14 65.60 65.60Meet with Truelove Re: DWR Grant - Las Companas 8/19/14 61.60 61.60

09/30/14 Total 408.90 727.57 80.74 157.70 112.00 1486.91Grand Total 779.50 727.57 157.94 216.70 112.00 1993.71

Santa Ana Watershed Project AuthorityGeneral Manager - Expense Report

1st Quarter FYE 2015

202

Documents

S A W P A · 11/18/2014 · Presenter: Karen Williams Recommendation: ... A discussion ensued regarding the video script and storyboard. Commissioner Galleano noted the ... A preliminary