The Metropolitan Water District of Southern California

Jeffrey Kightlinger, General Manager of The Metropolitan Water District of Southern

California, issued the following statement regarding the January 30 meeting with

Governor Edmund G. Brown Jr. to provide an overview of statewide drought conditions

and water management actions:

General Manager’s monthly

Activity Report January 2014

January 31, 2014

BAY-DELTA

INITIATIVES

2

WATER

RESOURCE

MANAGEMENT

3

WATER SUPPLY

CONDITIONS

4

ENGINEERING

SERVICES

5-7

BUSINESS

TECHNOLOGY

8-10

WATER SYSTEM

OPERATIONS

11-14

HUMAN

RESOURCES

15

REAL PROPERTY

DEVELOPMENT &

MANAGEMENT

16

EXTERNAL

AFFAIRS

17-18

FINANCE 19-20

Content by Group:

The Metropolitan Water District of Southern California

www.MWDh2o.com www.bewaterwise.com

THIS REPORT IDENTIFIES THE ACTIONS AND ACTIVITIES TAKING PLACE DURING THE MONTH THAT SUPPORT THE

OBJECTIVES OF THE GENERAL MANAGER’S FISCAL YEAR 2013/14 BUSINESS PLAN.

“The dry conditions facing California are unprecedented, and this region stands united with

the governor in supporting his call for a statewide approach to a statewide problem. His

message shows that California must be serious about addressing its short- and long-term

water problems.

“We recognize the importance of approaching this challenge as one state with a common

purpose. Metropolitan plans to respond in the coming weeks with the following proposed

water management actions in consultation with the leadership of our Board of Directors;

Declaring a formal water supply alert that embraces the governor’s call on all

Californians to voluntarily reduce water use by 20 percent.

Doubling Metropolitan’s conservation budget from $20 million to $40 million to

provide more incentives for reducing water use.

Exploring all achievable means to utilize Metropolitan’s water and other resources to

help address water supply challenges elsewhere in the state.

“Southern California water agencies have aimed to make conservation a local way of life.

The city of Los Angeles, as a shining example, has maintained mandatory conservation

measures since 2009. But what the state is facing right now is truly unprecedented.

Southern California must continue to lead by example and partner with the rest of the state

by all means feasible.”

BAY-DELTA INITIATIVES

Bay Delta Conservation Plan—The Draft Bay Delta Conservation Plan and its

corresponding Draft Environmental Impact Report/Environmental Impact Statement (EIR/

EIS) were released on December 13, 2013 for a 120-day public review period. Eight of the

12 BDCP public open house meetings scheduled throughout the state on the BDCP and

EIR/S were held in January. The public meetings are being conducted in a federal agency

“open house” format to provide the public with opportunities to obtain additional technical

information and engage in one-on-one discussion with project team members. Four

additional meetings will be held during February 2014. Three of these meetings will occur

within Metropolitan’s service area—downtown Los Angeles, Ontario, and San Diego.

Metropolitan, in cooperation with other state and federal participating public water

agencies, is collaborating on an extensive review of both the BDCP and associated EIR/EIS

in order to provide comments.

The Metropolitan Water District of Southern California—GM Monthly Report, Jan 2014 Page 2

State Water Resources Control Board

Staff is preparing for the next round of

State Water Resources Control Board

(State Board) technical workshops in

support of the Comprehensive (Phase 2)

Review of the 2006 Water Quality Control

Plan for the San Francisco Bay/Sacramento

-San Joaquin Delta Estuary. These

technical workshops will be hosted by the

Delta Stewardship Council’s Delta Science

Program and are expected to focus on Delta

outflow and in-Delta hydrodynamics. Staff

continues to monitor progress and provide

input in defining the scope of the upcoming

workshop focusing on Delta outflow,

which is scheduled for February 10-11,

2014.

Operating Criteria and Plan (OCAP)

Biological Opinions

As part of a judge-ordered process to

develop a robust science and adaptive

management program to inform the

development and implementation of the

OCAP biological opinions, Metropolitan

has been collaborating with scientists and

experts from the state and federal

agencies, the public water agencies, and

the non-governmental organization

community in a process called the

Collaborative Science and Adaptive

Management Process (CSAMP). The

CSAMP and its workteam, the

Collaborative Adaptive Management

Team (CAMT), is charged with

developing a workplan to address how

updated science and analysis will be

incorporated into the biological opinions

for Delta smelt and salmonids. In

January, the CAMT met twice as a

group and had numerous smaller

meetings to move forward with draft

workplans that ultimately will be

submitted to the court for review by the

February 15, 2014 deadline. The court

will determine if enough progress has

been made to justify that the CSAMP

should continue and whether to add

another one-year extension to the

deadlines for the new biological

opinions.

Strategic Priority: Complete Bay

Delta Conservation Plan—

Continue to provide leadership in

this process to restore the reliability

of the State Water Project with the

goal of completing the

Environmental Impact Report /

Environmental Impact Statement

within the upcoming fiscal year

reaching decisions on the project.

Bay-Delta Solutions—Develop

near– and long-term solutions that

enhance the Delta ecosystem,

improve water supply reliability,

and protect water quality.

Delta Emergency Preparedness

The U.S. Army Corps of Engineers is deploying various flood fight materials at their West

Sacramento emergency storage facility that would be available for earthquake or flood

induced operations in the Delta. Four Corps of Engineers centralized storage facilities of

this type have been established throughout the United States, with their inventories

interchangeable and deployable to other regions as demands warrant. Materials include

mat containment systems that can be filled with soil or rock, rapid deployment flood walls,

super sacks, and other systems, which could be suitable for levee slumping restoration. A

Memorandum of Agreement has also been signed between the U.S. Army Corps of

Engineers and the California Department of Water Resources to facilitate coordinated

stockpile materials, preparedness activities, and tactical operations during emergencies.

Delta Stewardship Council

The Delta Stewardship Council met

for one day on January 23. Phil

Isenberg concluded his four-year

term as Chair of the Council with

the January meeting, and the

Council unanimously elected

Randy Fiorini to serve as Chair for

the next four years. In addition, the

Council elected Phil Isenberg as

Vice-Chair. The Council also heard

from a panel of state and federal

agencies on California’s facing a

drought, discussed habitat

restoration and fish management in

the San Francisco Estuary, and

received updates from the Delta

Independent Science Board and

Lead Scientist.

At its January 16-17 meeting, the

Science Board focused on its review

of the Draft BDCP and the Draft

EIR/EIS and discussed initial

comments and review papers

prepared by other groups. The

Science Board will continue its

review at their February meeting.

Ensure cost-effective and reliable imported water supplies 2014 Water Transfer Program—Metropolitan paid the State Water Contractors a $500,000

administrative deposit to secure participation in the 2014 Water Transfer Program. The

program requires a $5 per acre-foot administrative deposit. Metropolitan’s payment provides

access up to 100,000 AF of supplies subject to availability. Negotiations for the cost of these

supplies are ongoing and staff will request board authorization to purchase the supplies in

April.

Water Surplus and Drought Management—Staff provided the Board with a report on year-

end water supply and demand conditions for 2013; this report included a detailed accounting

of ending storage balances. In addition, staff provided an oral report on developing water

supply conditions for 2014. Staff’s presentation included an update on the record dry

conditions and low initial snow survey results on the State Water Project system. Staff will

continue to provide the Board with monthly water supply and demand reporting through

May.

Implement the Local Resources Program and Conservation Program effectively Turf Removal Incentive—Incentives for turf removal were added to Metropolitan’s Regional Rebate Program SoCal

Water$mart. Previously, incentives were offered through member agencies administering turf removal programs.

Metropolitan offers up to $1 per square foot of turf removed and replaced with drought-tolerant landscapes to residential

property owners and commercial customers. Incentive applications are available online.


Water Supply—Develop and

execute water resource strategies

that achieve the long-term

reliability envisioned in the

Integrated Resources Plan.

WATER RESOURCE MANAGEMENT

Storage

As of 1/31/11 Percent of

Storage (AF) Capacity

DVL 583,335 72%

Lake Mathews 142,283 78%

Lake Skinner 38,801 88%

Useful information:

AF = acre-foot, the volume of water to cover an acre

of land, one-foot deep.

Approximately 326,000 gallons of water, serves

annual needs of two typical California families.

TAF=thousand acre-feet

MAF=million acre-feet

WATER SUPPLY CONDITIONS AS OF JANUARY 31, 2014

Page 4 The Metropolitan Water District of Southern California—GM Monthly Report

ENGINEERING

Conveyance and Distribution System Programs

These programs maintain reliable water deliveries through

specific repair and rehabilitation projects on Metropolitan’s

pipelines, reservoirs, and control structures. Recent activities

include the following:

West Valley Feeder No. 1 Valve Modifications—This

project rehabilitates deteriorated valve structures and

relocates existing air release/vacuum valve assemblies

from buried vaults to above-ground enclosures to prevent

cross-connections. The work will be completed in three

phases. The second phase was completed in December

2013.

Etiwanda Pipeline Lining Repair—This project repairs

portions of damaged mortar lining that have fallen off or

become delaminated from the pipeline’s interior surface.

A construction contract for the initial phase of the repairs

was awarded by the Board in December 2013.

Construction is scheduled to be complete by

October 2014.

Collis Valve Replacement—This project replaces a

deteriorated 42-inch control valve, known as the Collis

Valve, on the Palos Verdes Feeder. Preliminary design

was completed in December 2013.

Sepulveda Canyon Control Facility Seismic Upgrade—

This project will structurally upgrade the control facility

and two water storage tanks. Preliminary design is

65 percent complete and is scheduled to be complete by

July 2014.

Cathodic Protection—Installation of cathodic protection

systems is a proactive and cost-effective measure to

inhibit corrosion of buried metallic pipes, reducing the

risk of costly emergency repairs.

Second Lower Feeder Cathodic Protection—This

project installs 39 stray current drain stations along a

26-mile portion of the Second Lower Feeder. A

construction contract was awarded by the Board in

January 2014. Construction is scheduled to be

complete by August 2014.

Sepulveda Feeder (North) Cathodic Protection—

This project installs 24 stray current drain stations

along a 33-mile portion of the Sepulveda Feeder.

Construction is 58 percent complete and is scheduled

to be complete by April 2014.

Sepulveda Feeder (South) Cathodic Protection—

This project installs 22 stray current drain stations

along a seven-mile portion of the Sepulveda Feeder.

A request to the Board to award a construction

contract is planned for February 2014.


Strategic Priority: Infrastructure Reliability—Manage board-authorized projects in the Capital Investment Plan to ensure the

reliability of the region’s water supply and infrastructure to deliver high quality water. Continue overall focus on repair and

replacement work while deferring most growth-related work. Manage capital budget to reduce costs and mitigate rate impacts

while maintaining a high performance water system.

Hydroelectric Power Plant Improvements Program

This program performs comprehensive rehabilitation of Metropolitan’s hydroelectric power plants. The planned work addresses

operating deficiencies, ensures the facilities remain in compliance with current codes, improves plant efficiency, and extends the

operating lives of the plants.

Sepulveda Power Plant Rehabilitation—This project rehabilitates the electrical protection and control relays, replaces the

transformer ventilation system, and recoats the internal components of the turbine. Final design is 35 percent complete and is

scheduled to be complete by November 2014.

Foothill Power Plant Rehabilitation—This project rehabilitates the electrical protection and control relay and replaces the

transformer ventilation system. Final design is 35 percent complete and is scheduled to be complete by March 2015.

Distribution System Infrastructure Protection Program

This program addresses infrastructure protection improvements and right-of-way issues, including surface erosion, access and

encroachments, and develops programmatic environmental permitting throughout the entire conveyance and distribution system.

The current status is as follows:

Orange County Region—Preliminary design of improvements is 95 percent complete and is scheduled to be complete by

February 2014. Notice of preparation of a draft environmental impact report was issued in December 2013. The public

comment period closed on January 24, 2014.

Western San Bernardino Region—Preliminary design of improvements is 30 percent complete and is scheduled to be complete

by June 2014.

Los Angeles County Region—Preliminary site investigations are 65 percent complete and are scheduled to be complete by

March 2014.

ENGINEERING

Water Treatment Plant Improvement Programs

These programs were initiated to maintain reliability and improve operating efficiency of Metropolitan’s five water treatment plants

through specific improvement projects. Recent activities include the following:

Mills Plant

Electrical Upgrades—This project replaces aging electrical equipment, provides backup in the event of component failures, and

upgrades the electrical system to be consistent with current codes and industry practices. The Board authorized final design in

January 2014.

Jensen Plant

Electrical Upgrades, Stage 1—This project replaces aging electrical equipment, provide backup in the event of component

failures, and upgrade the electrical system to be consistent with current codes and industry practices. Final design is 30 percent

complete and is scheduled to be complete by December 2014.

Jensen Module No. 1 Filter Surface Wash Upgrades—This project replaces the existing surface wash system with a new fixed-

nozzle system. During filter backwashing, the top surface of a filter bed is sprayed with water to break up solids that build up

during the filtration process, which helps to clean the filter media. Construction is 32 percent complete and is scheduled to be

complete by December 2014.

Jensen Filter Valve Replacement—This project replaces the existing Module No. 1 filter valves with AWWA-type rubber-lined

butterfly valves, and will upgrade the valve electrical panels. Fabrication of the equipment is 95 percent complete and delivery

is scheduled for February 2014. Final design of the installation contract is 75 percent complete and is scheduled to be complete

by June 2014.

Weymouth Plant

Weymouth Filter Outlet Chemical Trench—This project provides a new underground concrete trench to route ammonia and

caustic soda piping from the feed pumps to two new injection points along the filtered water outlet channel. Construction

is complete.

Filter Building Seismic Upgrades—This project structurally upgrades Filter Buildings Nos. 1 and 2. Construction is 20 percent

complete and is scheduled to be complete by February 2015. A partial shutdown with reduced plant flow was completed in

December 2013 to install new concrete piers. (see photo on page 7)

Page 6 The Metropolitan Water District of Southern California—GM Monthly Report, Jan 2014

Oxidation Retrofit Program (ORP)

This program adds ozonation facilities, which reduces

disinfection by-products and improves water quality in

Metropolitan’s five treatment plants. Recent activities include

the following:

Weymouth ORP

Weymouth ORP (Staged Capacity)—Construction of the

main ORP facilities is 40 percent complete and is

scheduled to be complete in late 2016.

Weymouth ORP Chemical Facilities—These chemical

systems are needed for integration of the upcoming

ozonation system into the Weymouth plant’s treatment

process. Final design of the sulfuric acid system is 90

percent complete and is scheduled to be complete by

March 2014. (see photo to the right and on page 7)

Excavation for the new sulfuric acid tank farm

ENGINEERING


CRA Reliability Programs

These programs maintain reliability of the Colorado River Aqueduct. Recent activities include the following:

6.9kV Switch House Building Seismic Upgrades—This project provides seismic upgrades to the 6.9kV switch houses at all

five CRA pumping plants. The switch houses contain electrical equipment that is used to start and stop the pump motors.

Preliminary design is 90 percent complete and is scheduled to be complete by March 2014.

CRA Sand Trap Equipment Rehabilitation—This project replaces deteriorated sand trap equipment located upstream of the

Iron Mountain, Eagle Mountain, and Hinds pumping plants. Final design is 95 percent complete and is scheduled to be

complete by February 2014.

Gene Pumping Plant Delivery Line Expansion Joints—This project rehabilitates mechanical expansion joints on the

10-foot-diameter delivery pipelines at Gene pumping plant. A construction contract was awarded by the Board in November

2013. Construction is 25 percent complete and is scheduled to be complete by April 2014.

Whitewater Siphon Protection—This project improves control structures that protect the CRA’s Whitewater Siphons from

erosion by the Whitewater River. Final design is 60 percent complete and is scheduled to be complete by March 2014.

CRA Wide Area Network Microwave System—This project installs five new microwave links from Iron Mountain pumping

plant to Gene pumping plant. The new microwave installations increase the reliability of communications between CRA

facilities and the remainder of Metropolitan’s distribution system. Construction is complete.

Prestressed Concrete Cylinder Pipe (PCCP) Rehabilitation & Replacement Program

This program enhances the reliability of Metropolitan’s water distribution system and reduces the risk of costly emergency repairs

of PCCP lines. Recent activities include the following:

Second Lower Feeder Near-Term Repairs

Second Lower Feeder Near-Term Repairs at Sites 1 and 2—This project lines 1,400 feet of distressed PCCP segments with a

steel liner. A construction contract was awarded by the Board in November 2013. Construction is scheduled to be complete by

June 2014.

Second Lower Feeder Repairs at Site 3—This project lines 4,900 feet of distressed PCCP segments with a steel liner. Final

design is complete, and a request to the Board to award a construction contract is planned for March 2014.

Weymouth ORP – Installation of ductbank Weymouth Filter Building Seismic Upgrades

Dowel Installation

BUSINESS TECHNOLOGY

Deploy smart technologies and innovative business services to enhance efficiency

Maximo Maintenance Management Systems—In January, staff made enhancements to

Metropolitan’s maintenance management system. This system is used by Water System

Operations to manage maintenance activities such as preventive and corrective maintenance

work orders. The new software enhancements provide ease of use for mobile hand-held units

to capture safety data in the field (e.g., Confine Space Entry measurements) and streamline

workflow by enabling the software to capture and store the information electronically in

Water System Operations’ maintenance database.

Uninterruptible Power Supply—The installation phase of the project is nearing completion and proceeding according to plan and

is pending final inspection by the city. The Uninterruptible Power Supply protects critical data-center equipment (e.g., servers)

from potential power disruption and equipment failure due to power spikes or surges.

Board Committee Rooms—Staff began testing new voting equipment for the board committee rooms located in the

Headquarters building to remain compliant with the Brown Act. Deployment of the committee room voting system is scheduled

for late February.

Cyber Security Enhancements—Staff continued efforts to enhance security capabilities for Metropolitan’s Supervisory Control

and Data Acquisition System. SCADA is used to monitor and control a wide range of water system processes across the service

area. The initiatives include additional countermeasures to prevent unauthorized access and new software/hardware tools to

enhance monitoring of networks, systems and data.

As part of the SCADA Master Plan, Business Technology, Water System Operations and Engineering are working closely to

develop a road map for deployment of new technology to support the current and future needs of Metropolitan. The Master Plan

is currently being finalized and a presentation to the Board is planned in the first half of this calendar year.

Metropolitan-wide Rollout of Multifunctional Office Copiers—The Business Technology Group continues to roll-out new

multifunctional copiers to reduce printer/copier/fax/scanning costs and to replace equipment that is no longer supported.

Activities necessary to support the effort include network reconfiguration and setup for network printing, scanning, emailing,

and faxing capabilities and training of staff on new equipment.


Business Processes and

Information Technology

Advance continuous business

process improvements to improve

effectiveness and efficiency while

striving for innovation, flexibility,

and integration with technology.

Complete Metropolitan’s Personal Computer Replacement Program for deploying new computing technology

throughout the organization

Substantially completed rollout of new PCs to Engineering Services Group users located at Headquarters and the Weymouth

water treatment plant. To date, the PCRP project is approximately 90 percent complete. Deployment of new computing

technology throughout the organization is scheduled to be complete in February/March.

Efficiently maintain and operate Metropolitan’s Headquarters building, the Diamond Valley Lake Visitor Center, and

the Diamond Valley Lake Education Center

Activities at Metropolitan’s Headquarters building include:

Replacement of Headquarters East Parking Door—Metropolitan’s Engineering staff have reviewed the contractor’s

submittal. The contractor is preparing engineering drawings for staff’s review. Project completion remains on schedule for

February 2014.

Metropolitan staff was moved off the 3rd floor wing to accommodate the leasing of office space.

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BUSINESS TECHNOLOGY

Continue innovative sustainability efforts in business practices including Spring Green, Our Legacy Newsletter, the

Rideshare Program, energy conservation and recycling efforts

Digital Signatures—Metropolitan staff has begun working to test and implement a digital signature application for engineering

drawings, while assessing the expansion of the application for use in procurement, Eforms, and mobile business processes. The

digital signature application automates signature-dependent processes, allowing Metropolitan to reduce paper usage and save time

and money.

Our Legacy Newsletter—As part of efforts for sustainable business practices and education, Issue No. 85, Accept the Challenge to

Green 2014, encourages employees to renew their efforts at the office and home to achieve higher levels of eco-friendly behaviors.

In addition, employee participation in Metropolitan’s Rideshare Program is 41 percent.

Union Station LED Light Replacement—The Los Angeles Department of Water and Power approved Metropolitan’s rebate request

and issued a Notice to Proceed to install 678 LED lights by March 2014. Staff has installed 400 lights to date and is on schedule to

meet DWP’s deadline. The one-time rebate amount is estimated at $8,500.

Water Bottle Filling Station—Metropolitan recently installed a water bottle filling station in the

cafeteria to provide a rapid fill of water and minimize plastic bottle waste in the environment. Since

installation of the units in the Wellness Center and the Cafeteria, over 2,000 bottles have been refilled

and recycled. (see photo to the right)


Seek fair and equitable contract agreements with Member Agencies, federal, and state governments to maintain a long-term

sustainable wholesale water resource to Southern California

In 2013, Metropolitan’s Board acted on a total of nine annexation actions (2 conditional, 3 final and 4 public hearings). In the

12-month period one annexation was completed adding 12.55 acres of land into the service area.

Next month, Metropolitan staff is preparing a public hearing to levy standby charges for the properties with Calleguas

Annexation No. 98 and an Annexation Board Letter for Conditional approval of Calleguas Annexation No. 99.

Implement Business Technology’s comprehensive workforce succession planning and employee development programs

Business Technology continues to complete the remaining workforce skills gaps through recruitment and training efforts. In

addition, all 30+ business teams are performing a full re-assessment as part of the succession planning effort.

BUSINESS TECHNOLOGY

Maintain an effective Business Outreach Program for regional, small businesses and veterans to ensure broad participation

and competitive costs

Support of Member Agencies, State of California, and the Southern California Business and Veteran Business Communities

Los Angeles Business and Academic Community Sponsorship and Participation:

Staff attended the Los Angeles Area Chamber of Commerce’s 125th Annual Inaugural Dinner where Los Angeles Mayor Eric

Garcetti spoke to more than 1,500 business and civic leaders.

Staff attended the 2014 Latino Business Association Awards where over 500 businesses participated in honoring the 2013 class

of Latino business leaders. Business Outreach participated to increase awareness of Metropolitan’s training and certification

programs and encouraged the Southern California business community to participate in Metropolitan’s business opportunities.

Business Outreach and Water Resources Management supported Metropolitan Member Agencies by participating in the 2014

University of La Verne Water Technology Conference with a focus on Water and Energy in La Verne. The Business

Technology Group was also able to introduce the new H2O TECHCONNECT Smart Connection Community to conference

attendees. Business Outreach members conducted four workshops, participated in two conferences and expos, three panel

discussions, and trained over 1,800 businesses on “How to Do Business with Metropolitan.”

Business Outreach’s Innovation and Technology Program partnered with Green LAVA to add a new workshop to the H2O

TECHCONNECT workshop series Funding Your CleanTech Start-up. Attendees learned about ways to fund projects,

prototypes, and commercialize their products; find investors for their companies; and were introduced to Incubators, Angel

Funding, I-Hubs, and Small Business Administration Funding.

Staff continued support for the Innovation and Technology Community by participating in the ARCS Foundation’s

Achievement Rewards for College Scientists. Los Angeles Chapter Universities include: California Institute of Technology;

Harvey Mudd College; University of California, Los Angeles’ Brain Research Institute; Pomona College; University of

Southern California Viterbi School of Engineering; Keck School of Medicine of the University of Southern California; Scripps

Institution of Oceanography at the University of California, San Diego.

Southern California Business and Veteran Business Community

Metropolitan has over 270,000 registered vendors on the Collaborative/Shared Planet Bids Systems that Metropolitan can invite to

participate in bid opportunities, SBE Certification, workshops, networking events, and introduce to Water Conservation Programs

and Bay Delta Initiatives.

New Registered Vendors on Metropolitan’s NETConnect System on Planet Bids for Quarter Ending December 31, 2013:

345 Registered Vendors

120 Small Businesses

14 Certified Disabled Veteran Business Enterprises

17 Micro Businesses (Under 100 Employees and Under $3,500,000 in Gross Annual Receipts)

Small Business Enterprise Certification for Quarter Ending on December 31, 2013:

372 Vendors applied for SBE Certification

330 Vendors were approved for SBE Certification

The Business Outreach program partnered with The Port of Long Beach, The City of Long Beach, MetroLink and Planet Bids and

had three Users’ Group meetings to accomplish the goals of adopting uniform Small Business Certification Procedures, streamline

processes, solve SBE Certification issues, and apply best practices in SBE Certification.

Support of Member Agencies

Business Outreach partnered with Water Resources Management and The Energy Coalition to implement the Water Energy Nexus

Pilot Program, which is administered by the County of Los Angeles and funded by the California Public Utilities Commission.

Metropolitan’s Business Outreach, along with other Metropolitan staff, have partnered with Member Agencies, water agencies, and

Isle Utilities to form a Technology Approval Group to identify emerging water technologies and accelerate their market uptake

through a global innovation forum. Metropolitan hosted the fourth meeting of the Approval Group on January 29.


WATER SYSTEM OPERATIONS

Operate system reliably

System Operations delivered

approximately 142,000 acre-feet of water

to meet member agency demands in

January, which averaged approximately

4,580 AF per day. This was an increase of

400 AF per day from December due to

unseasonably dry and warm conditions for

the month of January. Treated water

deliveries for January totaled 71,000 AF,

or 50 percent of total deliveries for the

month. In January, 99,000 AF of Colorado

River water was pumped as the Colorado

River Aqueduct remained on a seven-

pump flow for the month of January. State

Water Project imports averaged 1,925 AF

per day in January for 59,675 AF for the

month.

Storage at Diamond Valley Lake remained

at 584,000 AF or 72 percent full, as Inland

Feeder deliveries remained suspended in

January due to a low initial State Water

Project allocation of 5 percent for 2014.

During the month of January there were

no releases from DVL. In addition,

SWP blends to the Weymouth, Diemer,

and Skinner plants remained at zero

percent for the month of January.

Operations staff continued to adjust

flow patterns within Metropolitan’s

distribution system to expand the use of

Colorado River Aqueduct water to

conserve from the State Water Project.

System Operations continued to

maximize power generation throughout

the month. In January, Metropolitan's

hydroelectric plants generated an

average of 25 megawatts per hour for

18,600 megawatt-hours for the month.

This was a decrease of 900 megawatts

from December mainly due to several

hydroelectric plants being unable to

operate as a result of curtailed SWP

deliveries.


Optimize maintenance

As part of a continuous effort to maintain Metropolitan’s water delivery system, the Allen-McColloch Pipeline serving Orange

County communities from Yorba Linda to San Clemente was taken out of service for an internal inspection of 12 miles of welded

steel pipe. Staff replaced two small valves and performed an inspection of the lining while the pipeline was out of service.

(see photo below)

Staff completed preventative maintenance on the Lake Skinner Outlet Tower’s hydraulic control valves. The six hydraulic control

valves were disassembled, inspected, cleaned, and re-assembled. The hydraulic valves are used to control the Tower’s 26 butterfly

valves. The 26 butterfly valves provide the flexibility to select water from different elevations which ensures that the Skinner plant

and San Diego raw water pipelines receive the best water available from the reservoir. (see photo below)

System Reliability—Operate

and maintain the water and

power systems in a cost-effective

manner to ensure reliable

delivery of water supplies.

Setting up for dewatering for Allen-McColloch

Pipeline Shutdown

Lake Skinner Outlet Tower


Optimize maintenance continued…

Staff completed coating repairs to the discharge piping on one of the Wadsworth Pumping/Hydro-Generation units at Diamond

Valley Lake. Additionally, the Wadsworth forebay was dewatered to allow for inspection of the concrete panels and desiccation of

algae and quagga mussels. Allowing the forebay to remain dry for a period (desiccation) provides a chemical-free alternative for

algae and quagga control.

As part of the Infrastructure Protection and Asset Preservation Program, staff continued coatings work on the East Valley and

Culver City Feeders. The sectionalizing valve substructure provides the ability to isolate the Culver City Feeder from the Palos

Verdes Feeder to allow flexibility in system operations.

The La Verne Shops rehabilitated a 16-inch diameter plug valve for the Covina Pressure Control Structure. The repairs and

application of a corrosion resistant coating will regain flow control without loss of water and extend the life of the plug valve. (See

photos below)

Staff repaired a minor leak on the Upper Feeder pipeline in the City of Pasadena. To complete the work, staff excavated the site,

cleaned the pipe exterior, and located the leaking joint. Application ports were then drilled into the pipe and injected with a

specialized sealant. This method provides a permanent repair. After the leak was repaired and the sealant cured, staff backfilled

the pipe, and regraded the area to prevent erosion.


Support water resource program

Metropolitan supports the California Department of Water Resources through

reimbursable agreements. This month the La Verne Shops worked on several

projects in support of the State Water Project. Staff manufactured 12 air-cooler

adapters and nuts for the Chrisman and Buena Vista Pumping Plants. The four-

inch diameter adapters connect the radiator heads of the generator water cooling

system and improve the reliable operation of the generators. (see photo of nut

and adapter to the right)

Staff performed preventive and corrective maintenance at the Sepulveda

hydroelectric plant. The work included maintenance of the high-voltage

switchyard equipment, generator, and auxiliary systems. The work was done

during a scheduled outage of the Sepulveda plant during low flows to avoid

generation revenue loss. Preventive maintenance ensures reliability of the

hydroelectric plants and supports Metropolitan‘s power recovery program to offset costs for importing

water supply into the service area.

Before and after coating and repairs to 16” plug valve for the Covina Pressure Control Structure



Effectively manage power system and optimize generation On January 15, the California Air Resources Board accepted

Metropolitan’s application to track and manage Allowances as

part of its Cap and Trade program to reduce Greenhouse Gasses

as required by AB32. All entities that are responsible for GHG

emissions, including importing non-renewable energy into

California, must cover those emissions with Allowances and

must register to manage Allowances. Metropolitan expects to

import energy in 2014 to support increased pumping on the

Colorado River Aqueduct. There was no cost to register.

Develop workforce

The Joint Apprenticeship and Training Committee, Apprentice

Program staff and Audit Department completed the annual

internal audit of the program. The audit is required by

California’s Department of Apprentice Standards and is

intended to facilitate continuous improvement of Metropolitan’s

training programs. Audit results will be used by the instructors

and program staff to assure that apprentice training continues to

focus on relevant, industry standards. Additionally, the Class of

2017 began its first period of instruction. These 19 newly hired

employees will receive four years of classroom and on-the-job

training before they achieve journey-level status.

Improve security and emergency response

Staff completed three-day training in water-specific incidents

in December. The course was a special version of the

Incident Command System 300 course offered by the Federal

Emergency Management Agency that focused on managing

water-specific emergencies and coordinating with outside

responding agencies. The Los Angeles Department of Water

and Power hosted the class at the city’s Emergency

Operations Center, with representatives from numerous water

districts in attendance. (see photo below)

On December 18, staff attended California Utilities

Emergency Association’s regular Board Meeting and Annual

Meeting in Sacramento. Metropolitan was a founding

member of the CUEA and maintains a seat on its Board of

Directors. CUEA coordinates the emergency planning and

response efforts of numerous utilities with the State Office of

Emergency Services. They also provide a link for utility

agencies into the state’s Emergency Operations Center to

address utility issues during major emergencies.

Representatives from various water districts participating in the ICS-300

class at the Los Angeles City Emergency Operations Center


Protect source water quality

On January 16, staff participated in the Clean Colorado River Sustainability Coalition

(Coalition) board meeting in Boulder City, Nevada. Metropolitan is a member of this

Coalition, which is comprised of key stakeholders in the lower Colorado River basin

focused on protecting the river’s water quality. Coalition members discussed Colorado

River source water protection initiatives including potential partnership opportunities

with academic institutions to support water quality investigations.

There were no taste-and-odor problems in Metropolitan’s reservoirs in early January.

However, three segments (about a 15-mile stretch) at the upper end of the 100-mile-long

East Branch of the State Water Project are colonized by algae species that caused taste-

and-odor problems last winter. The Department of Water Resources is organizing a

proactive treatment targeting these sites.

Provide technical support to member agencies

Metropolitan held a Member Agency Water Quality Managers Meeting on January 16.

Staff provided updates on California drought conditions and emerging drinking water

regulations. Staff also provided an update on the current water supply situation and

general water quality conditions in Metropolitan’s source and treated water system.


Optimize water treatment and distribution

State Water Project target blends at the Weymouth, Diemer,

and Skinner plants remained at zero percent for January

2014. Flow-weighted running annual averages for total

dissolved solids for November 2012 through October 2013

were 513, 524, and 471 mg/L for the Weymouth, Diemer and

Skinner plants, respectively.

Staff at the Jensen plant developed a standard lubrication

maintenance protocol to reduce equipment failures and

repairs while improving the efficiency of water treatment

process performance. The types of lubricants used on the

valves, gear boxes, clarifiers, compressors, pumps, and

traveling bridges were updated to be used in concert with the

standard maintenance schedule.

Ozone construction continued at the Weymouth plant. This

retrofit will complete Metropolitan's $1.3 billion water

quality improvement project at the water treatment plants.

At the Diemer plant, staff is working with outside contractors

to schedule start-up testing to implement ozone disinfection

in summer of 2014.

Fully comply with water quality, safety, and

environmental regulations

Metropolitan complied with all water quality regulations and

primary drinking water standards during the month of

January.

Water Quality, Environmental and

Safety—Develop and implement

comprehensive programs to ensure

Metropolitan delivers water that

meets or exceeds all water quality

regulations and objectives. Integrate

effective safety and environmental

practices to protect workers and the

environment.

Prepare for future regulations

The Division of Oil, Gas, and Geothermal Resources

released draft regulations for hydraulic fracturing in mid-

November 2013, and also issued emergency or interim

regulations on December 11, 2013 which are now in effect.

Staff attended the first public hearing on the proposed

regulations and the California Environmental Quality Act

scoping meeting on January 6 and 8, respectively. Staff

provided comments through the Association of California

Water Agencies’ letter, which was submitted on January 14.

In August 2013, the President issued Executive Order 13650

on Improving Chemical Facility Safety and Security. The

Order establishes a multi-agency working group comprised

of representatives from the Occupational Safety and Health

Administration, Environmental Protection Agency,

Department of Homeland Security, and Department of

Transportation. The working group is tasked with making

recommendations to improve coordination between the

respective agencies in improving the safety and security of

facilities that use chemicals (e.g., chlorine) and reduce the

risks of hazardous chemicals to workers and communities.

Staff is monitoring the activities and deliverables of the

working group because of the potential for impacts on

chemical regulations, including those for chlorine and other

water treatment chemicals. Staff participated in the

teleconference “listening sessions” held in Los Angeles and

Sacramento the week of January 6. Staff will engage with

American Water Works Association or other water

associations to provide comments.

HUMAN RESOURCES

Foster learning and organizational development

Scheduled six-month completion training for new employees with a goal to

review and revise the training in the near future.

Analyzing Day 1 new employee orientation with a goal of revising based on

business need and survey results.

Finalized details of upcoming water leadership and management pilot program to

partner with universities to use Metropolitan facilities to deliver classes eligible

for the tuition reimbursement program.

Delivered 5 Choices to Extraordinary Productivity, Facilitating for Results,

Accelerating Teamwork, and Active Listening Skills classes during the month, as

well as an InsideTrack: Tour of Weymouth Plant on a closed Friday.

Foster management excellence

Continued to provide ongoing in-house coaching and administration of external

coaching engagements for various managers.

Facilitated an all-day workshop for 60 Engineering Services managers, principals

and seniors to foster a collaborative work environment for capital improvement

projects management.

Supported Business Technology Group strategic planning initiative.

Maintain compliance and effectiveness in benefits programs

Started planning the change to the Deferred Compensation core fund lineup fee

structure. This change will reduce the fees charged to participants and therefore

increase the interest earned on investments.

Determined a schedule for the upcoming 401(k)/457 plan Request for Proposal

process.


Strategic Priority: Employee

Development—Provide management

and employee development to meet the

changes in the workplace resulting from

increased retirements, changing skill

requirements, and priorities. Ensure

employees and managers are prepared

to effectively carry out their roles and

are provided opportunities to prepare

for promotional opportunities and

future positions. Foster learning and

performance-oriented approach

throughout the organization. Enhance

efforts to find, develop and place

internal talent to fill vacancies to

provide needed skills.

Human Resources Excellence

Ensure Metropolitan is a high

performance workplace with excellent

leadership and management practices

that engage employees; foster

alignment with Metropolitan’s business

goals; provide the right talent and skills

for future business needs; and establish

a workplace where employees

implement cost-effective processes and

programs to deliver outstanding value

and customer support.

Identify, assess and manage risk

The Risk Management Unit completed 41 incident reports

communicating instances of Metropolitan property damage,

liability, workplace injuries, regulatory visits and spills.

Risk Management completed 121 risk assessments on

contracts, including professional service agreements,

construction contracts, entry permits, special events and film

permits.

Workers’ Compensation costs

Conducted initial investigations on 8 injury incidents.

Submitted 4 new claims to Metropolitan’s workers’

compensation claim administrator.

Settlements were negotiated in 1 claim and 8 claim files

were closed.

Conducted MedVan evaluation at Jensen and Diemer

facilities.

Arranged 9 medical evaluations (DMV, medical

surveillance, hearing conservation, etc.).

Addressed 2 accommodation issues.

Deploy the StrategicHR Plan

Provided the sixth HR Fitness-HR 101 learning topic to all

Human Resources staff to ensure these employees have a

basic understanding of various topics common to Human

Resources functions.

Ensure a high performance culture

Launched preparations for deployment of Voices2014 High

Performance Workplace Survey.

Acquire talent

Resolved two grievances on the recruitment process.

Provide proactive, swift, and consistent employee

relations and positive labor relations

During January, staff completed two internal

investigations into complaints of discrimination. Both

were completed within proscribed time frames. There

were no findings of discrimination.

Met with bargaining units on two Human Resources

Operating Policies. Bargaining units provided slight

revisions that were acceptable to management.

REAL PROPERTY DEVELOPMENT & MANAGEMENT

Implement strategies for right-of-way planning and acquisition support of Bay-Delta

Initiatives and infrastructure reliability and protection programs

A letter of consent was obtained from Long Beach Airport that allows access onto airport

property for the installation and maintenance of cathodic protection equipment and anodes

along the Second Lower Feeder Pipeline near Cherry Avenue in the city of Long Beach.

A license was acquired to allow for access and construction staging in association with

infrastructure repairs to the Second Lower Feeder on Carson Street between Santa Fe

Street in the city of Long Beach and Alameda Street in the city of Carson.

Seek revenue-generating opportunities for real estate assets in several market

segments—telecommunications, solar development, film production, and sustainable

technology and research

A permanent easement was granted to Southern California Edison Company to install

electrical and communication equipment on property near Western Municipal Water

District’s Operations Center located east of Lake Mathews. This equipment will service both

Western’s Operations Center and a nearby proposed housing development.

Foster staff training and development

One employee attended an Appraisal School Federal and State Laws and Regulations

course as required to maintain a Certified General Real Estate Appraisal license.

Two staff attended two workshops ;Difficult Conversations and Succession Planning: The Future is Here, sponsored

through Human Resources and offered by Liebert Cassidy Whitmore.

One employee attended the Metropolitan-sponsored training class 5 Choices to Extraordinary Productivity.

Pursue development of the Diamond Valley Lake

area, including the Visitor Center and marina, into

the creation of an area that supports recreation,

provides leasing and revenue opportunities, and

provides benefits to Metropolitan and the

surrounding community

For Fiscal Year 2013/14, Metropolitan has received

$26,495 through December on the percentage lease

with Urban Park Concessionaires for the operation of

the DVL Marina and the Lakeview Trail. The rent

received represents seven percent of the gross

receipts. Annual savings for replacing the

professional services agreement with the percentage

lease are estimated to be $380,000. Diamond Valley

Lake has hosted approximately 616,000 visitors at its

marina facilities and 147,000 private boats have

launched since the 2003 public opening.


Real Property Acquisition,

Management and Revenue

Enhancement—Manage

Metropolitan’s real property assets

with a focus on revenue

enhancement while ensuring that

Metropolitan’s core operations are

protected. Acquire real property for

future operational business needs.

*2013/14 Projection **Actual thru January 2014

*50,000

EXTERNAL AFFAIRS

Continue to develop and implement local, state, and federal water policy and

legislative strategies consistent with board-adopted policies

State

Reorganization of Drinking Water Program—In October, the Governor’s office

established a Drinking Water Reorganization Task Force to provide input on the

proposed transfer of the state’s drinking water program from the California

Department of Public Health to the State Water Resources Control Board.

In January, the Brown Administration released its written proposal and held a public

meeting to solicit feedback. Rather than implementing the transfer through

legislation, Governor Brown included the transfer of the drinking water program in

his 2014/15 budget.

State Budget—On January 9, Governor Jerry Brown introduced his $154.9 billion

2014-15 proposed state budget. The budget proposal calls for $619 million to be

expended on projects called for in the state’s Water Action Plan to increase storage

capacity, improve drinking water, increase flood protection and increase regional

self-reliance.

2014 Legislative Year—For first time in well over a century, a majority of Assembly

members are freshmen. Three new members from Southern California were elected:

Sebastian Ridley-Thomas of Los Angeles, Matt Dababneh of Sherman Oaks and

Freddie Rodriguez of Pomona.


Legislative, Communications and

Community Relations

Develop federal and state legislative

strategies consistent with board-adopted

policies and ensure clear, consistent

communications (internally and

externally) about Metropolitan’s

operations, policies and programs

through multimedia communication

efforts and effective educational and

other outreach programs.

Local

On January 29 Metropolitan staff briefed the Anaheim Public Utilities Commission on the Bay Delta Conservation Plan and

the release of the BDCP Public Draft and EIR/EIS.

On January 28, Metropolitan staff briefed the Burbank City Council on the Bay Delta Conservation Plan and the BDCP Public

Draft and EIR/EIS.

Federal

On January 7-8, Metropolitan Directors Griset and Ackerman participated in National Water Resources Association’s summit in

Las Vegas, Nevada to discuss the new governance of the organization.

Support board member and executive management communications and working relationships with elected officials, other

government leaders, business and community leaders and other stakeholders

On January 30, Directors Murray, Grunfeld and Metropolitan staff attended the Los Angeles Area Chamber of Commerce Annual

Inaugural Dinner. The event, which drew more than 500 elected officials and community leaders, honored former Director David

Fleming for his civic leadership.

EXTERNAL AFFAIRS


Continue to develop and manage public information and education programs in coordination with member agencies to

convey clear and consistent messages about Metropolitan’s mission and other issues, including water supply/delivery,

resource planning, water quality protection and conservation

Media and Communications

Hosted a joint meeting of the Member Agency Public Information Officers and Conservation Coordinators on January 16 to

discuss drought messaging and conservation programs.

Arranged interviews on water supply conditions with numerous media outlets for General Manager Kightlinger, Assistant

General Manager/Chief Operating Officer Debra Man, and Water Resource Management staff, including a New York Times

reporter, Bloomberg News reporter, Sacramento Bee and Union Tribune San Diego reporters, L.A. Newspaper Group reporter,

KCAL-TV Channel 9 reporter, and Chinese-language newspaper Tseng Tao.

Set up interview with Assistant General Manager Patterson and L.A. Times reporter for a story about release of draft BDCP

environmental documents.

Arranged interview with General Manager Kightlinger and Imperial Valley Press reporter to discuss approval of Minute

No. 319 and Colorado River supplies.

Set up on-camera interview of Water System Operations’ Brent Yamasaki by KABC-TV Channel 7 reporter at the Diemer

treatment plant for story about Allen-McColloch Pipeline shutdown in Orange County for maintenance.

Arranged interview with Water System Operations Group Manager Jim Green and Ventura County Star reporter for a story

about how Metropolitan controls quagga mussels in its distribution system.

Issued press release about 11-day shutdown of the Allen-McColloch Pipeline in Orange County as part of Metropolitan’s

ongoing maintenance of its water transmission and distribution systems.

Issued joint press release about Imperial Irrigation District and Metropolitan collaborating on U.S.-Mexico pilot project on

Colorado River to share costs of water conservation projects in Mexico and then sharing the saved water supplies between the

two agencies.

Distributed Your Water, Metropolitan’s e-newsletter featuring a story on the BDCP Public Comment Process.

Education

Staff hosted a Member Agency Education Coordinator’s Meeting on January 30, 2014 in preparation for upcoming educational

activities and to share program highlights among the member agencies.

Staff conducted six education workshops for more than 200 upper elementary and middle school students and facilitated six

tours for guests from the Western Science Center for close to 400 students in grades K-12.

There were approximately 1,000 unique visits to the Education Website from December 16, 2013 – January 15, 2014.

Coordinate communication and outreach to various stakeholders (including local government agencies and utilities)

regarding water supply system operations and maintenance; water quality protection and water treatment; infrastructure

replacement, refurbishment and development and emergency management

Provided outreach to residents and businesses along 11 miles of the Allen-McColloch Pipeline in preparation for the shutdown

and inspection of this major, high-pressure line.

Coordinated a tour of the Jensen treatment plant for the City of Beverly Hills Public Works Commission.

Online search on Google Search and the Google Content Network continues this month. Links to bewaterwise.com appear

when keywords such as “water,” “California weather,” and “water rebates” are searched for by Southern California users.

There were over 40,000 visits to bewaterwise.com in December 2013. There were over 27,000 visits to bewaterwise.com from

January 1-14, 2014.

The Metropolitan Water District of Southern California—GM Monthly Report Page 19

FINANCIAL SUMMARY AS OF DECEMBER 31, 2013

*Expense budget includes Board-approved increases for Water Supply Programs and the R&R fund of $25M each.

Excludes bond construction and other trust funds activity Excludes bond construction and other trust funds activity.

700 No. Alameda Street, Los Angeles, CA 90012

General No.: 213 217-6000

www.mwdh2o.com www.bewaterwise.com

Metropolitan's Mission is to provide its service area with adequate and reliable supplies of high-quality water to meet

present and future needs in an environmentally and economically responsible way.

General Manager: Jeffrey Kightlinger

Office of the GM No.: 213 217-6139

Email: [email protected]


FINANCE

STRATEGIC PRIORITY—

Improve Financial Position Prudently manage the investment of Metropolitan’s funds in accordance with policy

guidelines and liquidity considerations

Staff continues to provide the necessary liquidity for Metropolitan’s operational and capital

expenditures with no loss of principal and no policy violations, while generating a portfolio

return that exceeded the benchmark.

Financial Management—Assure member agencies, rating agencies, the legislature, and

the public that Metropolitan is effectively managing the public’s finances through

consistent, clear, and timely financial policies and reporting. Update Metropolitan’s capital

financing plans and work with rating agencies and investors to communicate Metropolitan's

financial needs, strategies, and capabilities thus ensuring Metropolitan has cost-effective

access to capital markets and the ability to finance ongoing future needs. In addition,

actively manage Metropolitan’s short-term investment portfolio to meet ongoing liquidity

and investment challenges

Business Continuity—Facilitate district-wide planning and training to prepare employees and managers to effectively carry out

critical roles and functions thus ensuring continuity of operations in the event of a disaster.

Manage Business Continuity Program in accordance with Operating Policy A-06

Request for professional service contract with consultant to assist in completion of Metropolitan’s update of the Business Impact

Analysis was processed and contract terms were accepted by the consultant. The BIA will identify Metropolitan’s critical business

processes and help prioritize resources to restore normal operations in the event of a disruption caused by a disaster. Presented the

project scope and approach to the Emergency Management Working Group as the steering committee for the BIA.

Documents

The Metropolitan Water District of Southern California