Resolution No. 2016-069RESOLUTION NO. 2016-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE CITY OF VERNON'S
PARTICIPATION IN THE PROCESS OF APPOINTMENT OF
DIRECTORS TO THE CENTRAL BASIN MUNICIPAL WATER
DISTRICTS BOARD OF DIRECTORS
WHEREAS, the City of Vernon (the "City"), is a municipal
corporation and a chartered city of the State of California organized
and existing under its Charter and the Constitution of the State of
California; and
WHEREAS, in 2015, the State Auditor published a report
identifying widespread mismanagement of the Central Basin Municipal
Water District and called for more than thirty recommendations to
reform the Central Basin Municipal Water District; and
WHEREAS, in response to the State Auditor's findings and
recommendations, and in order to overhaul operation of the Central
Basin Municipal Water District, Senate Bill 953 ("SE 953") and
Assembly Bill 1794 ("AB 179411) were introduced by the State
legislature; and
WHEREAS, SB 953 and AB 1794 were signed into law on
September 21, 2016; and
WHEREAS, AB 1794 requires that in 2017 the number of Central
Basin Municipal Water District's Board of Directors members be
increased from five to eight, with five publicly elected members and
three members appointed by the water purveyors in the Central Basin
Municipal Water District service area; and
WHEREAS, AB 1794 requires that by November 8, 2022, a re-
districting of the Central Basin Municipal Water District by reducing
the number of districts from five to four and the number of Board
Directors from eight to seven with four publicly elected members and
three members appointed by the water purveyors in the Central Basin
Municipal Water District service area; and
WHEREAS, as a water purveyor in the service area of the
Central Basin Municipal Water District, the City is entitled to
participate in the process of appointment of board directors to the
Central Basin Municipal Water District Board of Directors; and
WHEREAS, by memorandum dated December 15, 2016, the Director
of Public Works, Water & Development Services has recommended the
City's participation in the process of appointment of directors to the
Central Basin Municipal Water District's Board of Directors; and
WHEREAS, the City Council of the City of Vernon desires to
authorize the City's participation in the process of appointment of
directors to the Central Basin Municipal Water District's Board of
Directors.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt from California Environmental Quality Act
("CEQA") review, because it is an administrative activity that will
not result in direct or indirect physical changes in the environment,
and therefore does not constitute a "project" as defined by CEQA
Guidelines section 15378.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the City of Vernon's participation in the process of
appointment of qualified individuals with relevant technical expertise
- 2 -
representing the water purveyors in the service area of the Central
Basin Municipal Water District to the Board of Directors of the
Central Basin Municipal Water District per guidelines specified in
Assembly Bill 1794.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or the City Administrator's
designee, to nominate and vote for a qualified employee of the City
for appointment to the Board of Directors of the Central Basin
Municipal Water District.
SECTION 5: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions
of the Council of this City.
APPROVED AND ADOPTED this 15th day of December, 2016.
ATTEST:
Mari E. Ayala
City Clerk / i y
APPROVED TO FORM:
Brian B , Deputy C'ty Attorney
- 3 -
� L `
Name: William J. Davis
Title: Mayor / -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
Maria E . Ayala City Clerk / ' y ',of the City
I, ,
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 2016-69, was duly passed, approved and adopted by the
City Council of the City of Vernon at a special meeting of the City
Council duly held on Thursday, December 15, 2016, and thereafter was
duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this :Ztj"day of December, 2016, at Vernon, California.
(SEAL)
- 4 -
•Y
aria . Ayala
City Clerk /
TRANSWTTAL COMMUNICATION
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: December 20, 2016
TO: Derek Wieske, Director of Public Works, Water & Development Services
FROM: Deborah Juarez, Records Management Assistant ( '�
r'j
RE: Resolution No. 2016-69 — A Resolution of the City ouncil of the City of Vernon
Authorizing the City of Vernon's Participation in the Process of Appointment of Directors
to the Central Basin Municipal Water Districts Board of Directors.
Transmitted herewith is a copy of Resolution No. 2016-69 referenced above, which was approved by City
Council on December 15, 2016.
Thank you.
Attachment
c: Resolution No. 2016-69
STAFF REPORT
RECEIVED
DEC 13 2016 40 DEC 13 2016
CITY CLERK'S OFFICE s`,ITV AOMINISTRATION
STAFF REPORT C
PUBLIC WORKS WATER AND DEVELOPMENT SERVICES
DEPARTMENT
DATE: December 15, 2016
TO: Honorable Mayor and City Council
V,/
FROM: Derek Wieske, Director of Public Works, Water and Development Services
Department
Originator: Scott B. Rigg, Public Works and Water Superintendent
RE: Resolution Authorizing the City of Vernon's Participation in Voting for
Central Basin Municipal Water District's Board of Directors
Recommendation
A. Find that a Resolution recommending participation in voting for the Central Basin
Municipal Water District (CBMWD) is exempt from California Environmental Quality
Act ("CEQA") review, because it is an administrative activity that will not result in direct
or indirect physical changes in the environment, and therefore does not constitute a
"project" as defined by CEQA Guidelines section 15378; and
B. Approve a Resolution authorizing the City of Vernon's participation in voting for
CBMWD's Board of Directors.
Background
The CBMWD was established in 1952 as a water wholesaler that provides imported water to 47
retail water providers and one water wholesaler including cities, mutual water companies,
investor -owned utilities and private companies in southeast Los Angeles County. The District
purchases imported water from the Metropolitan Water District of Southern California (MWD),
and as such, is a MWD member agency.
The CBMWD is the region's primary surface and recycled water supplier. As such, the City of
Vernon purchases approximately 800 acre-feet a year of surface water supplies from the
CBMWD in order to augment its existing water demand requirements. In terms of costs to the
City, the CBMWD's Tier 1 rate is currently set at $1,032 per acre-foot. The average annual cost
to the City, based on purchasing 800 acre-feet of surface water per year, is approximately
$825,000, and will increase to approximately $867,000 per year once the January 1, 2017 rate
increase becomes effective.
In 2015, a State Audit (Audit) was completed by the California State Auditor to investigate
questionable practices being carried out by the CBMWD. The Audit identified problems with
leadership, ethics, and lack of technical expertise. Through involvement from local water
purveyors and local legislative staff, it was determined that a more permanent change in
governance was needed in order to ensure long-term reform on the part of the CBWMD.
On September 21, 2016, the Governor signed into law Assembly Bill No. 1794, which was
authored by Assemblywoman Cristina Garcia. The Bill was written as a result of the
participation by the local water community, and more specifically, a group known as the Central
Basin Purveyors Advisory Group. The Bill directly reflects the recommendations outlined in the
State Auditor's Report and makes the CBMWD Board more accountable to the 41 water
purveyors that are ultimately its direct customers. This Bill requires the Board of Directors of
the CBMWD to be composed of eight directors until the directors elected at the November 22,
2022 election take office, when the board will be composed of seven directors, as intended by the
Bill. Of the seven directors, four will be elected for each division by the voters of the division,
and three will be appointed by the water purveyors within the confines of the CBMWD district.
The goal of this board structure is to make the water purveyors of the CBMWD district a more
integral part of the decision making process, while increasing transparency.
The General Manager of the CBMWD shall notify each purveyor of the district and provide a
60-day period during which CBMWD will accept nominations for appointment of individuals to
the board of directors. Individuals nominated for appointment to the board of directors shall
demonstrate eligibility and relevant technical expertise. Relevant technical expertise is defined as
employment or consulting for a total period of at least five years, prior to the date of first
appointment, in one or more positions materially responsible for performing services relating to
the management, operations, engineering, construction, financing, contracting, regulation, or
resource management of a public water system. The three directors appointed by the water
purveyors shall be selected by the water purveyors of the district every four years. The term
limits range from two to four years. The appointment process is discussed below:
1. One director shall be selected by all large water purveyors from the nominees of large water
purveyors. Each large purveyor shall have one vote. A large purveyor is defined as a public
water system that is one of the top five purveyors of water as measured by the total purchase of
potable and recycled water from CBMWD for the three prior fiscal years.
2. One director shall be selected by all cities that are water purveyors of the district from the
nominees of cities. Each city shall have one vote.
3. One director shall be selected by all of the water purveyors of the district from any nominee.
The vote of each purveyor shall be weighted to reflect the number of service connections of that
water purveyor within the service area.
It is in the City's best interest to approve a Resolution authorizing participation in voting for
CBMWD's Board of Directors. This resolution will give the City Administrator, or his designee,
the authority to vote for the three new directors. There is a high probability that the City, as a top
five water purveyor, will one day have an employee serve as a CBMWD Director representing
the large water purveyors, with only five votes needed to elect the subject director and specified
term limits.
Page 2 of 3
Fiscal Impact
The Fiscal Impact is unknown at this time.
Attachments
1. California Legislative Information — Assembly Bill No. 1794
2. October 21, 2016, memorandum from Kevin Hunt, General Manager, CBMWD
3. September 23, 2016, memorandum from Nossaman LLP, to Kevin Hunt, General Manager,
CBMWD.
4. Resolution Authorizing City of Vernon's Participation.
Page 3 of 3
llrf LEGISLATIVE INFORMATION
AS-1794 Central Basin Municipal Water District. (2015-2016)
Assembly Bill No. 1794
CHAPTER 401
An act to add Chapter 1.6 (commencing with Section 71265) to Part 3 of Division 20 of the Water
Code, relating to municipal water districts.
Approved by Governor September 21, 2016. Filed with Secretary of State
September 21, 2016.
LEGISLATIVE COUNSEL'S DIGEST
AB 1794, Cristina Garcia. Central Basin Municipal Water District.
Existing law, the Municipal Water District Law of 1911, provides for the formation of municipal water districts
and grants to those districts' specified powers. Existing law permits a district to acquire, control, distribute,
store, spread, sink, treat, purify, recycle, recapture, and salvage any water for the beneficial use of the district,
its inhabitants, or the owners of rights to water in the district. Existing law requires the board of directors of a
district to consist of 5 members and each director to be a resident of the division from which the director is
elected.
This bill would require the board of directors of the Central Basin Municipal Water District to be composed of 8
directors until the directors elected at the November 8, 2022, election take office, when the board would be
composed of 7 directors, as prescribed. By imposing new duties on the district, this bill would create a state -
mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs
mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
This bill would make its operation contingent on the enactment of SB 953 of the 2015-16 Regular Session.
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 1.6 (commencing with Section 71265) is added to Part 3 of Division 20 of the Water Code,
to read:
CHAPTER 1.6. Central Basin Municipal Water District
71265. For the purposes of this chapter:
(a) "District" means the Central Basin Municipal Water District.
(b) "Large water purveyor" means a public water system that is one of the top five purveyors of water as
measured by the total purchase of potable and recycled water from the district for the three prior fiscal years.
(c) "Public water system" has the same meaning as in Section 116275 of the Health and Safety Code.
(d) "Relevant technical expertise" means employment or consulting for a total period of at least five years,
prior to the date of first appointment, in one or more positions materially responsible for performing services
relating to the management, operations, engineering, construction, financing, contracting, regulation, or
resource management of a public water system.
(e) "Small water purveyor" means a public water system with less than 5,000 connections.
71266. (a) Except as provided in subdivision (c) and notwithstanding any other provision of this division, the
board of directors of the district shall be composed of seven directors as follows:
(1) Four directors, one director elected for each division established pursuant to subdivision (d) by the voters
of the division. Each director shall be a resident of the division from which he or she is elected. An election
pursuant to this paragraph shall be in accordance with the Uniform District Election Law (Part 4 (commencing
with Section 10500) of Division 10 of the Elections Code).
(2) Three directors appointed by the water purveyors of the district in accordance with Section 71267.
(b) The district shall be subject to Section 84308 of the Government Code.
(c) Until the directors elected at the November 8, 2022, election take office, the board of directors shall be
composed of eight directors as follows:
(1) Five directors in accordance with Section 71250.
(2) Three directors appointed by the water purveyors of the district pursuant to Section 71267.
(d) The board of directors shall divide the district into four divisions in a manner as to equalize, as nearly as
practicable, the population in the respective divisions pursuant to Section 71540.
71267. (a) The general manager of the district shall notify each water purveyor of the district and provide a 60-
day period during which the district will accept nominations for appointment of individuals to the board of
directors.
(b) Individuals nominated for appointment to the board of directors shall demonstrate eligibility and relevant
technical expertise.
(c) (1) The three directors appointed by the water purveyors shall be selected by the water purveyors of the
district every four years as follows:
(A) One director shall be selected by all large water purveyors from the nominees of large water purveyors.
Each large water purveyor shall have one vote.
(B) One director shall be selected by all cities that are water purveyors of the district from the nominees of
cities. Each city shall have one vote.
(C) One director shall be selected by all of the water purveyors of the district from any nominee. The vote of
each purveyor shall be weighted to reflect the number of service connections of that water purveyor within the
district. If the selection of a director under this subparagraph would result in a violation of paragraph (2), the
first eligible candidate receiving the next highest number of votes shall be selected.
(2) The appointment of directors pursuant to paragraph (1) shall not result in any of the following:
(A) The appointment of three directors that are all employed by or representatives of entities that are all large
water purveyors.
(B) The appointment of three directors that are all employed by or representatives of entities that are all cities.
(C) The appointment of three directors that are all employed by or representatives of entities that are all small
water purveyors.
(3) Each nominee for director who receives the highest number of votes cast for each office described in
paragraph (1) is appointed as a director to the board of directors and shall take office in accordance with
Section 71512. The general manager shall collect the votes and report the results to the water purveyors.
Votes for an appointed director are public records.
(d) Each appointed director shall live or work within the district.
(e) In order to ensure continuity of knowledge, the directors appointed at the first purveyor selection shall
classify themselves by lot so that two of them shall hold office until the selection of their successors at the first
succeeding purveyor selection and one of them shall hold office until the selection of his or her successor at the
second succeeding purveyor selection.
(f) (1) The term of a director appointed pursuant to subparagraph (A) of paragraph (1) of subdivision (c) is
terminated if the appointed director no longer is employed by or a representative of a large water purveyor.
(2) The term of a director appointed pursuant to subparagraph (B) of paragraph (1) of subdivision (c) is
terminated if the appointed director no longer is employed by or a representative of a city.
(3) The term of a director appointed pursuant to subparagraph (C) of paragraph (1) of subdivision (c) is
terminated if the appointed director no longer is employed by or a representative of a water purveyor.
(g) (1) An appointed director shall not do any of the following:
(A) Hold an elected office.
(B) Hold more than 0.5 percent ownership in a company regulated by the Public Utilities Commission.
(C) Hold more than one consecutive term of office on the board.
(2) An appointed director shall be subject to all applicable conflict -of -interest and ethics provisions and shall
recuse himself or herself from participating in a decision that could have a direct material benefit on the
financial interests of the director.
(h) A vacancy in an office of appointed director shall be filled in accordance with the selection process
described in subdivisions (a) to (c), inclusive.
(i) (1) An appointed director shall be eligible for all of the following:
(A) Reimbursement for travel and conference expenses pursuant to the Central Basin Municipal Water District
Administrative Code.
(B) Compensation for up to 10 meetings per month at the per meeting rate provided by the Central Basin
Municipal Water District Administrative Code.
(C) Health insurance benefits, if those benefits are not provided by the director's employer.
(2) An appointed director shall not be eligible to receive communication or car allowances. For purposes of this
paragraph, "car allowances" does not include travel expenses incurred as described in paragraph (1).
(3) An appointed director may waive the reimbursement and compensation described in paragraph (1) and may
be required to reimburse his or her employer for any compensation received.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 3. This act shall only become operative if Senate Bill 953 of the 2015-16 Regular Session is enacted and
becomes effective.
Central Basin
NW Municipal Water District
MEMORANDUM
To: Central Basin Purveyor Advisory Group
From: Kevin P. Hunt, P.E., General Manager
CC: Central Basin Board of Directors, Senior Staff
Date: October 21, 2016
Subject: Information Sheet for Prospective Appointed Directors
To ensure that newly appointed Directors are prepared to assume their duties the District has
addressed some questions that some of you may have as you consider whether to seek
appointment to the Central Basin Municipal Water District Board of Directors. The main question
that has arisen is that of time commitment. To properly address this it is prudent to first give an
overview of our organizational structure and scheduling as it relates to our Board.
Committee and Board Meetings
The District is governed by our Board of Directors. They meet once a month on the fourth Monday
of the Monday (In some months this is changed due to holidays). There are times when the need
arises for a Special Board Meeting. Meetings begin at 10:00 a.m. and typically run between 1-2
hours. Additionally, to ensure that our Directors are prepared for the Board meeting, District
Administration sends each Director a copy of the Board Packet the week prior to the Board
meeting. Review of the Board agenda typically accounts for an hour. The Board Agenda typically
has 20-25 items.
The District has five standing Committees: Administration and Ethics, Communications,
Engineering and Operations, Finance and Audit, and Water Resources. Committees meet the first
two weeks of the month. For additional information on Committee meeting dates please visit
http://www.centralbasin.org/board-directors/meetings-and-agendas. With the addition of
Appointed Directors, the Committee Structure will be set at three members. The Board President
appoints members to committees of the Board of Directors and assign chairperson
responsibilities, and announce the committee and chairperson appointments at the next regular
Board meeting after making such appointment.
The meeting times for Committees is at 10:00 a.m. on the meeting date. Committee Meetings
typically run an hour. Additionally, to ensure that Committee Members are prepared, District
Administration sends each Director a copy of the Committee packet the week prior to the
Committee meeting. Review of the Committee Agenda typically accounts for a half hour.
Committee agendas typically have four to five items.
Agendas for the most part are staff driven to address the operational matters of the
District. Nonetheless, a member of the Board, or the body itself, subject to rules or procedures
of the District, may direct the General Manager or the appropriate District staff to place a matter
of business on a future agenda (Administrative Code Part 2, Chapter 1, Article 4, Section 4.5).
The monthly time commitment for an Appointed Director would be between 10 and 14 hours.
Not accounted for above is the District's Board Budget workshops which are held in the
Winter/Spring of each year to discuss the upcoming fiscal year budget. In the past the District has
held between two and four public budget workshop meetings. Also not included above are the
required Board Member trainings to be completed the first six months (AB 1234 Ethics and AB
1825 Sexual Harassment Training). Additional trainings or briefings have been identified which
consist of the following:
• Brown Act and Parliamentary Procedure;
• FPPC Statement of Economic Interest (form 700);
• Media Training;
• Carver Principles
• Administrative Code (Directors' Code of Conduct);
• California Special District Association's —How to bean Effective Board Member;
• Briefings on the District's projects or programs; and
• Others training or briefings as identified.
Other District Approved Meetings
Appointed Directors may wish to attend the occasional Metropolitan Committee and Board
meetings which usually take place the second Monday and Tuesday of the month, please visit
the following website for dates and times: http://www.mwdh2o.com/WhoWeAre/Board/Board-
Meeting/Pages/default.aspx.
The District hosts other meetings throughout the year which Directors may attend and/or
participate in. This includes the Central MWD Caucus, held on the first Wednesday of the month
from 11:30 a.m. to 1:30 p.m. In addition, the District also hosts a monthly purveyor workshop
with our retail water agencies which is typically held on the third Wednesday of each month from
11:30 a.m. to 1:30 p.m. This would be an excellent opportunity for the Appointed Directors to
meet with the retail agencies. Time will be agendized on the Purveyor Workshop agenda for this.
Elected Directors normally have meetings during the month with their community and District
staff. Appointed Directors will definitely require meetings with staff and should plan on attending
1-2 regional functions per month.
There are water industry and local government related conferences and meetings that Directors
attend and/or participate in. Some of these include:
Association of California Water Agencies Fall Conference (First week of December)
Colorado River Water Users Association (Second week of December)
Association of California Water Agencies DC Conference (Last week of February)
Association of California Water Agencies Sacramento Conference (Second week of March)
Association of California Water Agencies Spring Conference (Second week of May)
California Contract Cities Association Annual Conference (Second week of May)
Per the Administrative Code, attached is a list of approved meetings that Board members may
attend. Staff is in the process of gathering the dates for the 2017 conferences.
Additional Resources
In order to get a sense of the roles and responsibilities of a Director, it would be prudent to
review:
• Central Basin Director's Code of Conduct:
http://www.centralbasin.org/sites/default/files/pdfs/Directors's%20Code%20of%20Con
duct%2007-25-2016. odf
• Administrative Code:
http://www.centra[basin.org/about-us/administrative-code;
• Strategic Plan:
http://www.centraIbasin.org/sites/default/files/pdfs/Strategic-Plan-Signed.pdf;
• Fiscal Year 2016-2017 Budget Report:
http://www.centralbasin.org/sites/default/files/finance/Adopted%20Budget%20for%20
FY%202016-17 FINAL O.odf: and
• Summary on MWD report and activities (being prepared by Central Basin staff).
Conclusion
Overall it would be a fair to estimate that the total time commitment for an Appointed Director
would be approximately 20 hours per month excluding conferences. Should you have any further
questions, please feel free to contact me at (323) 201-5548 or via email at
kevinh@centralbasin.org.
Administrative Code - Exhibit "C" District Approved Meetings
1. Central Basin Municipal Water District Board meetings
2. District Committee meetings
3. Prescheduled and calendared meetings with the General Manager through
District Board and Administrative Services
4. General Manager -approved and scheduled meetings with District staff
5. Meetings formally requested by General Counsel pertaining to legal matters of the
District
6. Meetings formally requested by Special Counsel pertaining to legal matters of the
District
7. City Council and other community meetings within the District's service area to
discuss water policy or projects related to the District's mission
8. Meetings with local, state or federal elected officials to discuss water policy or
projects related to the District's mission
9. Meetings with District purveyors to discuss water policy or projects related to the
District's mission
10. District events or events which are sponsored by the District
11. American Water Works Association
12. Association of California Water Agencies — Region 8 Board meetings and Semi-
annual Conferences
13. Association of California Water Agencies/Joint Powers Insurance Authority
meetings and Conferences
14. Association of Metropolitan Water Agencies
15. California Association of Sanitation Agencies
16. California Contract Cities Association — Annual Conference, Seminars and business
meetings
17. California Special Districts Association
18. California Urban Water Conservation Council
19. California Water Awareness Campaign
20. Central Basin Water Association
21. Central Basin Water Rights Panel
22. Chambers of Commerce meetings within the District's service area
23. Colorado River Water Users Association
24. Compton Creek Mosquito Abatement District
25. Gateway Cities Council of Governments
26. Gateway Water Management Authority
27. Greater Los Angeles Gateway County Integrated Regional Water Management
28. Independent Cities Association
29. League of California Cities
30. Local Agency Formation Commission
31. Long Beach Water Commission
32. Los Angeles County Board of Supervisors
33. Los Angeles County Flood Control District
34. Los Angeles County Sanitation District
35. Los Angeles & San Gabriel River Watershed Council
36. Metropolitan Water District (MWD) of Southern California — Board meetings,
committee meetings, and inspection trips of MWD facilities
37. National Association of Latino Elected and Appointed Officials
38. National League of Cities
39. National Water Research Institute
40. National Water Resources Association
41. Public Officials for Water & Environmental Reform
42. San Gabriel River Discovery Center Authority — Board meetings and Committee
meetings
43. San Gabriel River Watermaster Board meetings
44. San Gabriel Valley Protective Association
45. Southeast Water Coalition
46. Southern California Water Committee meetings
47. Upper San Gabriel Valley Municipal Water District — Board meetings and
Committee meetings
48. Urban Water Institute, Inc.
49. Water Education for Latino Leaders -Conferences and Workshops
50. Water Education Foundation
51. Water Replenishment District of Southern California — Board meetings and
Committee meetings
52. WateReuse Association — Conferences, meetings, and Board meetings
53. WateReuse Foundation
54. West Basin Municipal Water District - Board meetings and Committee meetings
55. West Basin Water Association
.�r.�.`. Central Basin
Municipal Water District
2017 Conference Schedule
• List of approved conferences per the Administrative Code
• Central Basin is not a member of all conferences listed
• Highlighted conferences where Director participation may be beneficial to the District
DATE
EVENT I
LOCATION
January 10-11, 2017
National Water Resources
Tropicana Hotel
Association (NWRA) Leadership
Las Vegas, NV
Forum
January 18-20, 2017
California Association of
Palm Springs Hilton
Sanitation Agencies (CASA)
Palm Springs, CA
Winter Conference
t7
ICA Winter Seminar
Tess fttker'a Ogee Resort
irft ..` , CA
February 2 & 3, 2017
Water Education Foundation One-
West Sacramento City Hall
Day Workshops
Sacramento, CA
1011;mary 9-10, 9017
Utban Water lnstitlte Spring
H11111M 1palm Springs
CA
ft-Mbrah
of California Water
Vil l n, CSC
7
#7
Sam ipl" 1-1
11, 2017
Wsledse C06mia Annua
, CA
March 20-22, 2017
NWRA Federal Water Issues
Embassy Suites
Conference
Washington, D.C.
March 23, 2017
Water Education Foundation 34th
Hotel Information Not Available
Annual Executive Briefing
Sacramento, CA
March 23-24, 2017
Water Education for Latino
Hotel TOD
Ler re (WELL) 2017 Annual
cordwonce
San Dhigo, CA
March 26-29, 2017
Association of Metropolitan Water
Washington Court Hotel,
Agencies 2017 Water Policy
Washington, D.C.
Conference
May 9-12, 2017
ACWA Spring Conference &
Mon" Aftaflott and Portola
E on
Hotel A Spot
lucent , CA
May 11-14, 2017
Calli6mia Contract Cities
Renaissance hviianlls
Association Se Annual Municipal
Indian Weft, CA
Seminar
May 25, 2017
Water Education Foundation 2017
Ontario Convention Center
Santa Ana River Watershed
Ontario, CA
Conference
June 11-14, 2017
American Water Works
Pennsylvania Convention Center
Association Annual Conference &
Philadelphia, PA
Exposition
June 22-24, 2017
NALEO 34th Annual Conference
Dallas, TX
August 8-10, 2017
NWRA Western Water Seminar
El Dorado Hotel & Spa
Santa Fe, NM
August 22-24, 2017
CASA 62"d Annual Conference
Marriott Marquis
San Diego, CA
Member 25-28, 2017
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FUNOSSAMANLLP Memorandum
TO: Kevin Hunt
FROM: Alfred Smith
DATE: September 23, 2016
RE: City Participation on Board of Directors
501817-0001
This memorandum responds to your request for an opinion as to the City of
Vernon's question regarding whether City staff can serve on the Board of Directors of
the Central Basin Municipal Water District ("District"), in light of Assembly Bill 1794
recently signed by Governor Brown. With Assembly Bill 1794 now signed by the
Governor, assuming there are no legal challenges, the issue of appointed directors will
be as provided in California Water Code sections 71266(c) and 71267, quoted below.
These new laws authorize the staff of City water purveyors within District boundaries to
serve on the District Board of Directors.
Pursuant to California Water Code sections 71266(c) and 71267, Cities within the
District that are water purveyors will select at least one director by a majority vote once
the General Manager of the District begins the 60 day nomination period. Candidates
must live or work within the District and have an expertise as defined by the statute, but
may not be an elected official. "Relevant technical expertise" for appointed directors is
defined to require:
"[E]mployment or consulting for a total period of at least five years, prior to
the date of first appointment, in one or more positions materially
responsible for performing services relating to the management,
operations, engineering, construction, financing, contracting, regulation, or
resource management of a public water system."
The City Director(s) so selected shall serve only one term, set by lot, and only for
so long as otherwise qualifying as a representative of a City. The statute contemplates
that a City may also be a large water purveyor or a small water purveyor, but may not
have all three appointments. The statute also contemplates that the appointed directors
may not hold more than 0.5 percent ownership in a company regulated by the Public
Utilities Commission.
The statute provides that appointed directors are subject to all applicable conflict -
of -interest and ethics provisions and shall recuse themselves from participating in a
decision that could have a direct material benefit on their financial interests. The statute
further provides for compensation for up to 10 meetings per month, and health
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Memorandum
September 23, 2016
Page 2
insurance benefits if not provided by the director's employer. Appointed directors are
not eligible to receive communication or car allowances.
The Governor also signed SB 953 (Senator Lara). Senator Lara's bill codifies
changes already made to the District's Administrative Code. Specifically, Senator
Lara's bill prohibits sole source contracts, except in certain specified conditions such as
an emergency, or where there is only one unique vendor, and the District prepares a
justification memo. Senator Lara's bill requires the District to rebid a contract if there is
a significant change to the scope of work. Senator Lara's bill requires the General
Manager to issue a quarterly report detailing all contracts and dollar amounts. Senator
Lara's bill also requires a two-thirds vote to change matters relating to the ethics,
compensation, or benefits provided to the District's board of directors.
The relevant portions of AB 1794 are quoted below with emphasis provided for
sections responsive to the question posed by the City of Vernon:
'Water Code section 71266.(c): Until the directors elected at the November 8, 2022,
election take office, the board of directors shall be composed of eight directors as
follows:
(1) Five directors in accordance with Section 71250.
(2) Three directors appointed by the water purveyors of the
district pursuant to Section 71267.
Water Code section 71267. (a) The -general manager of the district shall notify each
water purveyor of the district and provide a 60-day period during which the
district will accept nominations for appointment of individuals to the board of
directors.
(b) Individuals nominated for appointment to the board of directors shall
demonstrate eligibility and relevant technical expertise.
(c) (1) The three directors appointed by the water purveyors shall be selected by
the water purveyors of the district every four years as follows:
(A) One director shall be selected by all large water purveyors from the nominees
of large water purveyors. Each large water purveyor shall have one vote.
(B) One director shall be selected by all cities that are water purveyors of
the district from the nominees of cities. Each city shall have one vote.
(C) One director shall be selected by all of the water purveyors of the district from
any nominee. The vote of each purveyor shall be weighted to reflect the number of
service connections of that water purveyor within the district. If the selection of a director
under this subparagraph would result in a violation of paragraph (2), the
first eligible candidate receiving the next highest number of votes
shall be selected.
(2) The appointment of directors pursuant to paragraph (1) shall not result in any
of the following:
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Memorandum
September 23, 2016
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(A) The appointment of three directors that are all employed by or
representatives of entities that are all large water purveyors.
(B) The appointment of three directors that are all employed by or
representatives of entities that are all cities.
(C) The appointment of three directors that are all employed by or
representatives of entities that are all small water purveyors.
(3) Each nominee for director who receives the highest number of votes
cast for each office described in paragraph (1) is appointed as a director to the
board of directors and shall take office in accordance with Section 71512. The
general manager shall collect the votes and report the results to the water
_purveyors Votes for an appointed director are public records.
(d) Each appointed director shall live or work within the district.
(e) In order to ensure continuity of knowledge, the directors appointed at the first
purveyor selection shall classify themselves by lot so that two of them shall hold office
until the selection of their successors at the first succeeding purveyor selection and one
of them shall hold office until the selection of his or her successor at the second
succeeding purveyor selection.
(f) (1) The term of a director appointed pursuant to subparagraph (A) of
paragraph (1) of subdivision (c) is terminated if the appointed director no longer is
employed by or a representative of a large water purveyor.
(2) The term of a director appointed pursuant to subparagraph (B) of
paragraph (1) of subdivision (c) is terminated if the appointed director no longer
is employed by or a representative of a city.
(3) The term of a director appointed pursuant to subparagraph (C) of paragraph
(1) of subdivision (c) is terminated if the appointed director no longer is employed by or
a representative of a water purveyor.
(q) (1) An appointed director shall not do any of the following:
(A) Hold an elected office.
(B) Hold more than 0.5 percent ownership in a company regulated by the Public
Utilities Commission.
(C) Hold more than one consecutive term of office on the board.
(2) An appointed director shall be subject to all applicable conflict -of -
interest and ethics provisions and shall recuse himself or herself from
participating in a decision that could have a direct material benefit on the
financial interests of the director.
(h) A vacancy in an office of appointed director shall be filled in accordance with
the selection process described in subdivisions (a) to (c), inclusive.
(i) (1) An appointed director shall be eligible for all of the following:
(A) Reimbursement for travel and conference expenses pursuant to the Central
Basin Municipal Water District Administrative Code.
(B) Compensation for up to 10 meetings per month at the per
meeting rate provided by the Central Basin Municipal Water District
Administrative Code.
(C) Health insurance benefits, if those benefits are not provided
by the director's employer.
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Memorandum
September 23, 2016
Page 4
(2) An appointed director shall not be eligible to receive communication or car
allowances. For purposes of this paragraph, "car allowances" does not include travel
expenses incurred as described in paragraph (1).
(3) An appointed director may waive the reimbursement and
compensation described in paragraph (1) and may be required to
reimburse his or her employer for any compensation received."
AES/AES
24909876.0
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE CITY OF VERNON'S
PARTICIPATION IN THE PROCESS OF APPOINTMENT OF
DIRECTORS TO THE CENTRAL BASIN MUNICIPAL WATER
DISTRICTS BOARD OF DIRECTORS
WHEREAS, the City of Vernon (the "City"), is a municipal
corporation and a chartered city of the State of California organized
and existing under its Charter and the Constitution of the State of
California; and
WHEREAS, in 2015, the State Auditor published a report
identifying widespread mismanagement of the Central Basin Municipal
Water District and called for more than thirty recommendations to
reform the Central Basin Municipal Water District; and
WHEREAS, in response to the State Auditor's findings and
recommendations, and in order to overhaul operation of the Central
Basin Municipal Water District, Senate Bill 953 ("SB 953") and
Assembly Bill 1794 ("AB 1794") were introduced by the State
legislature; and
WHEREAS, SB 953 and AB 1794 were signed into law on
September 21, 2016; and
WHEREAS, AB 1794 requires that in 2017 the number of Central
Basin Municipal Water District's Board of Directors members be
increased from five to eight, with five publicly elected members and
three members appointed by the water purveyors in the Central Basin
Municipal Water District service area; and
WHEREAS, AB 1794 requires that by November 8, 2022, a re-
districting of the Central Basin Municipal Water District by reducing
the number of districts from five to four and the number of Board
Directors from eight to seven with four publicly elected members and
three members appointed by the water purveyors in the Central Basin
Municipal Water District service area; and
WHEREAS, as a water purveyor in the service area of the
Central Basin Municipal Water District, the City is entitled to
participate in the process of appointment of board directors to the
Central Basin Municipal Water District Board of Directors; and
WHEREAS, by memorandum dated December 15, 2016, the Director
of Public Works, Water & Development Services has recommended the
City's participation in the process of appointment of directors to the
Central Basin Municipal Water District's Board of Directors; and
WHEREAS, the City Council of the City of Vernon desires to
authorize the City's participation in the process of appointment of
directors to the Central Basin Municipal Water District's Board of
Directors.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt from California Environmental Quality Act
("CEQA") review, because it is an administrative activity that will
not result in direct or indirect physical changes in the environment,
and therefore does not constitute a "project" as defined by CEQA
Guidelines section 15378.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the City of Vernon's participation in the process of
appointment of qualified individuals with relevant technical expertise
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representing the water purveyors in the service area of the Central
Basin Municipal Water District to the Board of Directors of the
Central Basin Municipal Water District per guidelines specified in
Assembly Bill 1794.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or the City Administrator's
designee, to nominate a qualified employee of the City for appointment
to the Board of Directors of the Central Basin Municipal Water
District.
SECTION 5: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions
of the Council of this City.
APPROVED AND ADOPTED this 15th day of December, 2016.
ATTEST:
City Clerk / Deputy City Clerk
APPROVED AS TO FORM:
�v1nh
Brian B n, Depu y City Attorney
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Name:
Title: Mayor / Mayor Pro-Tem
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, , City Clerk / Deputy City Clerk of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. , was duly passed, approved and adopted by the
City Council of the City of Vernon at a special meeting of the City
Council duly held on Thursday, December 15, 2016, and thereafter was
duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of December, 2016, at Vernon, California.
(SEAL)
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City Clerk / Deputy City Clerk