The Metropolitan Water District of Southern California ...edmsidm.mwdh2o.com/idmweb/cache/MWD...

Dated: July 31, 2009

WATER SUPPLY RELIABILITY

L O N G - T E R M R E G I O N A L CONSERVATION PLAN

The Board authorized an increase of $14.2 million to Metropolitan's Conservation Credits Program fiscal year 2009/10 budget to fund additional needs; amended a contract with Honeywell International increasing maximum amount payable up to $85 million; and made other near-term program changes.

Staff has released approximately $5.5 million of FY 2008/09 funding that was not part of the backlog, but was on hold per the Board‘s direction at the June board meeting.

Staff is currently working with Metropolitan‘s region-wide vendors to obtain invoices for the portions of the FY 2008/09 backlog that have completed applications and adequate supporting documentation, so they can be paid as soon as possible.

Staff has also implemented additional cost tracking codes and developed a proposed process for the weekly reconciliations of the budget vs. cost.

WATER SUPPLY

STATE WATER PROJECT

Westlands Water District—Metropolitan worked out operational parameters with the Westlands Water District regarding its proposed plan to pump non-project water into

the California Aqueduct in order to assist farmers suffering from drought-related impacts in the San Joaquin Valley. Metropolitan established a framework of water quality protection and mitigation. Although pump-ins were deferred, the framework will help address future proposals.

Multi-Agency Workgroup—Beginning in March 2009, staff led a multi-agency workgroup consisting of State Water Project contractors, Central Valley Project contractors, and California Department of Water Resources for the purpose of projecting San Luis Reservoir drawdown operations and its ability to meet contractor demands. This workgroup met regularly to review model projections prepared by staff. Recently, this workgroup analyzed information for the Governor to loan up to 100,000 AF of SWP water to CVP as part of the Governor‘s drought actions. Metropolitan‘s effort in this workgroup ensured that replacement of water, in San Luis Reservoir by CVP users, would occur by the end of November and thereby not impact SWP supplies.

IMPLEMENT INTEGRATED RESOURCES PLAN

Recycled Water Project Dedication—The City of Manhattan Beach recently unveiled its new recycled water system for the Manhattan Beach Golf Course on July 1. Directors Edward, Little, and Gray, City of Manhattan

W A T E R R E S O U R C E M A N A G E M E N T (WRM)

1-2

Water Resource Management

2-4

Water System Operations

6 Finance

Human Resources

Real Property Development & Management

Business Outreach

External Affairs

Corporate Resources

7-8

8

9

9-11

12-14

The Metropolitan Water District of Southern California

General Manager’s Monthly Activity Report—July 2009

This report identifies the actions/activities taking place during the month which support the objectives of the General Manager‘s Fiscal Year 2009/10 Business Plan.

5 Water Supply

Conditions Chart


alternative and water efficient landscapes.

Smart Controller Study P r e s e n t a t i o n t o t h e Conservation Council—Staff presented findings from its pilot weather-based ―Smart Irrigation Controller Program‖ to the California Urban Water Conservation Council. This pilot was done statewide with support from a state grant. Through this pilot, about 4600 smar t i r r i g a t ion controllers were installed in Southern California, of which approximately 2300 were used for this study. The study c o n c l u d e d t h a t s m a r t control lers save water regardless of brand, that sites with self-installed controllers saved more water than pro fes s iona l ly in s ta l l ed controllers and that water savings were the same for residential and commercial

Beach Mayor Portia P. Cohen and staff, and golf course and hotel managers attended the ceremony. Metropolitan provided funding through the Public Sector Phase I Program to assist with on‑site irrigation retrofit which cost about $27,000 for approximately 50 acre-feet per year of recycled water delivery capacity. Metropolitan partnered with West Basin Municipal Water District in this project.

Seawater Desalination in Mexico—Metropolitan staff participated in reviewing proposals for an analysis of seawater desalination at Rosarito Beach in Mexico. Metropolitan has partnered with San Diego County Water Authority, Southern Nevada Water Authority, and Central Arizona Water Conservation District for the Phase I feasibility study which will evaluate the potential for partnering with Mexico for a mutually beneficial facility.

CONSERVATION EFFORTS

Smart Irrigation Day—Metropolitan hosted, for the fourth year in a row, four information workshops for Union Station employees that focused on res ident ia l i r r i g a t i o n e f f i c i e n c y improvements, turf removal, and alternative landscapes. Approximately 50 people attended the workshops inc lud ing three Board members. Staff presented information on what to look for when conducting an inspection of the irrigation system, how to make the system more efficient and discussed new irrigation technologies and turf removal. Schmidt Design Group Incorporated, a San Diego based company that specializes in commercial and residential outdoor landscape design, also provided information on

SYSTEM RELIABILITY

SYSTEM OPERATIONS

System operations delivered 198,000 acre-feet of water for July 2009 to meet an average daily demand of 6,400 AF per day. This was an increase of 700 AF per day compared to June deliveries.

In July, 127,500 AF of water from the State Water Project was delivered into the service area to meet about 62 percent of Metropolitan‘s July deliveries. A flow of 90 cubic feet per second was maintained on the Inland Feeder for the month of July, resulting in 5,700 AF of State Water Project water being delivered to Diamond Valley Lake.

During the month of July system operations was able to vary

W A T E R R E S O U R C E M A N A G E M E N T (WRM)

installations. Follow up studies are required to refine the analysis and evaluate onsite installation conditions.

California Energy Commission Workshop—Staff attended the C a l i f o r n i a E n e r g y Commission‘s (CEC) second technical workshop to assist in t h e d e v e l o p m e n t o f performance standards for weather based irrigation controllers. As described in Assembly Bill 1881 (AB 1881), the CEC is responsible for developing performance standards for energy and water. Water providers, manufacturers, and vendors who were in attendance identified elements necessary for the CEC to consider when setting a standard for irrigation controllers. Draft standards should be available by August 2009 and finalized by the end of 2009.

W A T E R S Y S T E M O P E R A T I O N S (WSO)

operational flow patterns to keep 11 of the 16 small hydroelectric plants online and generating an average of 39 megawatts per hour or 29,000 megawatts for the month.

Conveyance & Distribution—Staff performed algae removal at Etiwanda Reservoir after chlorine application to ensure proper operation during peaking periods for HEP operations.

Staff performed operations that allowed an outside contractor to conduct functional testing of the Lake Skinner Bypass Screens.

Treatment Plants

Favorable chemical prices, reduced treated water demands, and the use of more Colorado River water all contributed to a 25 percent ($7.8 million) reduction in chemical spending versus budget for Fiscal Year 2008/09.


the Temescal HEP. The new inline filters will preclude clogging of the heat exchanger that causes the unit to shut down on low cooling water pressure and/or flow.

P o w e r O p e r a t i o n s & Planning—Metropolitan has completed arrangements with the California Independent System Operator for the monthly submittal of the Renewable Energy Credits (REC) f rom some of Metropolitan‘s small hydro generators, including DVL. The RECs will be entered into

S Y S T E M O P E R A T I O N S continued….

S t a f f c o m m e n t e d o n Congress ional legis lat ion introduced in July that would e s t a b l i s h n e w s e cu r i t y requirements and procedures at the nation‘s drinking water facilities. The legislation enables the Environmental Protection Agency to regulate security at drinking water systems. Also, the ability to impose ―inherently safer technology‖ mandates on drinking water systems would be vested with individual states,

rather than the federal government, and only then after considering the positive and negative consequences on a case-by-case basis.

System Maintenance / Shutdowns—Staff prepared and began coating of the San Dimas Hydro-Electric Power Plant. This work is b e i n g p e r f o r m e d i n conjunction with the unit‗s sleeve valve refurbishment.

Staff also installed new inline basket filters and made repairs to the cooling water lines for

EMERGENCY MANAGEMENT

To ensure the water sector is represented and considered in regional emergency management planning, staff attended a the kick-off meeting for developing a Southern California Catastrophic Earthquake Response Plan, sponsored by FEMA and CalEMA. Staff will continue to follow this effort to ensure that water utilities will have input into the plan.

Staff assisted federal and state Homeland Security representatives during a site visit to the Weymouth Water Treatment Plant, as part of a national program for assessing critical infrastructure sites to comprehend their regional significance. The Weymouth plant manager led a tour for Homeland Security and law enforcement visitors, including the Chief of Police for the City of La Verne.

Staff developed protocol for the Security Watch Center to use to alert system operators of fire fighting operations that involve super tankers needing water from Diamond Valley Lake for air drops on wild land fires.

Staff fielded an inquiry from the US Government Accountability Office seeking to make site visits to assess the resilience of the chemical supply chain in the regional area.

Special agents and the security program manager participated in surveillance detection training sponsored by the Department of Homeland Security and hosted the Municipal Water District of Orange County, at its Fountain Valley offices.


a regional database that tracks the use and crediting of RECs.

Metropolitan and a group of other California Hoover power contractors have had several meetings with the other Hoover contractors in an attempt to reach agreement on how to move forward in obtaining a new Hoover contract after the current contract expires in 2017. Good progress has been made this month and the possibility exists that the parties could come to an agreement shortly.

ENVIRONMENTAL, HEALTH AND SAFETY

The World Health Organization Pandemic Alert Level remains at six. Media attention on the H1N1 pandemic is increasing as Fall approaches. Twenty states are still showing widespread influenza activity all related to the H1N1 virus. Summer camps, schools, and military bases are experiencing continued outbreaks of virus, although summer typically means a flu hiatus. Once schools reopen in late August/early September, health officials expect a major spike in the number of new cases, particularly in young people. Metropolitan has a Pandemic Action Plan and is prepared for high rates of employee absenteeism.

Staff completed negotiations for the air emissions credits associated with the Diemer and Weymouth Oxidation Retrofit Projects. The final agreement will be executed upon resolution of South Coast Air Quality Management District issues.

Useful information: AF = acre-foot, the volume of water to cover an acre of land, one-foot deep. Approximately 326,000 gallons of water. ppt = parts per trillion, One part per trillion (1 ppt) is a proportion equivalent to one-twentieth of a drop of water diluted into a two-meter-deep Olympic-size swimming pool.


WATER QUALITY

PROTECT SOURCE WATER QUALITY

Chromium—On July 8, staff met with the Fort Mojave Indian Tribe to discuss concerns and progress of the Topock Chromium 6 remediation project.

Quagga Mussel—On July 20, Dr. Ric DeLeon of the Water Quality Section was appointed as a member of the Advisory Committee of The Invasive Species Council of California. The Advisory Committee comprised of representatives from governmental agencies, academia, and environmental groups is tasked with drafting rapid response plans for invasive pests, plants and diseases. Dr. DeLeon was selected due to his expertise on quagga mussel control strategies.

Class of 2009

WSO Apprenticeship Program

With the completion of their final Demonstrated Proficiency Assessments, the Class of 2009 Mechanical apprentices joined their Electrical counterparts in completion of the academic portion of their Program. A celebration luncheon was held on July 15, 2009, at the Weymouth facility for all of the Class of 2009 apprentices. Engraved p laques were

presented honoring their accomplishment. Awards were also presented to the high achievers in each class. Current and past members of the Joint Apprenticeship and Training Committee, as well as WSO management and the S t a t e D i v i s i o n o f Apprenticeship Standards representative, were in attendance.


MANAGE WATER TREATMENT

Taste and Odor—There is a benthic blue green taste and odor producing algae bloom in Diamond Valley Lake The levels of geosmin are confined to the upper surface and range from 7 to 10 parts per trillion. Staff is investigating the extent of the bloom and the need for treatment. Taste and odor was acceptable in the other source and finished waters.

Total Dissolved Solids—The blend plants (Weymouth, Diemer, and Skinner) are treating higher blends of State Project Water, resulting in lower levels of Total Dissolved Solids. The latest TDS results from July for Weymouth, Diemer, and Skinner water treatment plants are 564, 615, and 580 mg/L, respectively. All three plants are currently above the operating goal of 500 mg/L TDS as a running annual average.

Current Reservoir Storage

As of

7/31/09 Percent

of Capacity

Lake Mathews 147,800 AF 81 %

Lake Skinner 38,200 AF 87 %

DVL 348,700AF 43 %

Lake Perris 62,800 AF 48 %

Water Sales Cash Year 2009-10 (May-April)

Sales Forecast for Calendar Year 2009 is 2,023,000 AF

1,991,000 AF Current Sales Projection

1,900,000 AF Budget Sales Projection

+91,000 AF Difference

July Sales Estimate 219,000 AF

July Delivery Estimate 212,000 AF


W A T E R S U P P L Y C O N D I T I O N S


F I N A N C E as of June 30, 2009

Receipts are $33 million under budget at year

end, mainly due to lower water sales, power

sales, and interest income.

0

200

400

600

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1,000

1,200

1,400

1,600

July

Au

g

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c

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Ma

r

Ap

r

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Jun

e

Millio

ns

of

Dollars

Budget

Actual to Date

Actual

$ 1,286.6

Budget

$ 1,319.4

Excludes Bond Construction and Other Trust Funds Activity

Expenditures are $242 million under budget at

year end, mainly due to lower capital

expenditures, SWP power costs, and water

supply costs.

0

200

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Au

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Feb

Ma

r

Ap

r

Ma

y

Jun

e

Millio

ns

of

Dollars

Budget

Actual to Date

Actual

$ 1,245.7

Budget

$ 1,487.2

Excludes Bond Construction and Other Trust Funds Activity

O&M expenditures are $2 million over budget at

year end due to workers' compensation, third

party claims, and Cargill legal expenses, and are

mainly offset by lower material and supply costs.

0

50

100

150

200

250

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400

July

Au

g

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Oc

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Feb

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r

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r

Ma

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Jun

e

Millio

ns

of

Dollars

Budget

Actual to Date

Actual

$ 345.1

Budget

$ 343.0

Cash and Investments

$1,069.7 million

Construction Funds 12%

Stabilization Funds 30%

Funds Required for Operations

26%

Debt Service Funds 26%

Trust & Other Funds

6%

Construction costs are $90 million under budget

at year end, mainly due to the deferral of capital

spending.

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100

200

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400

500

July

Au

g

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Oc

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Feb

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r

Ma

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Jun

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Millio

ns

of

Dollars

Budget

Actual to Date

Actual

$ 379.0

Budget

$ 468.9

Actual

Fixed Charge Coverage 1.20 x 1.28 x

Revenue Debt Service Coverage 2.00 x 1.79 x

Revenue Bond Debt / Equity Ratio 100.0% 75.9%

Target Actual

- Moody's Investors Service Aa2 Aa2

- Fitch Ratings AA AA+

- Standard & Poor's AA AAA

Credit Ratings

Summary Financial Statistics

Target


HIGH PERFORMANCE WORKPLACE

STRATEGIC HR

Preparing an update to the HR Strategic Plan, which integrates management feedback, assesses findings from the Voices 2009 Survey and incorporates best practices research to ensure Metropolitan is effectively addressing key HR issues. Final document will communicate a consistent message to all regarding Metropolitan HR Strategy accomplishments and direction.

HIGH PERFORMANCE CULTURE

Achieved a highly respectable 63 percent participation by our workforce in the Voices 2009 High Performance Workplace Survey. These participation rates exceed those of most organizations in the Federal Human Capital Survey conducted annually by all agencies of the federal government. Staff is working to complete analysis of the findings and meet commitments to communicate the results to the workforce in August.

HUMAN RESOURCES EXCELLENCE

WORKFORCE PLANNING AND SUCCESSION

Prepared presentation on Workforce Planning and Succession framework for review by HR Advisory Council and Group Manager Meeting.

TALENT ACQUISITION

No new employees hired. Following up on job postings t h a t a r e c u r r e n t l y i n recruitment.

TOTAL COMPENSATION

Continued to work with AFSCME and management on the AFSCME Class Study to finalize revised job descriptions.

P r o v i d e d p r o p o s a l t o Association of Confidential Employees for the HR jobs to work towards finalizing the ACE Class Study.

Received renewal quotes on employee benefit insurances to determine whether there are cost savings opportunities.

Worked with Finance and outside actuary to provide report on the cost of the enhanced retirement option.

Continued to implement the various facets of the Cargill Settlement Agreement.

EMPLOYEE RELATIONS

Employee Relations staff worked with each of the four bargaining units to finalize contract language as part of the recently reached Tentative Agreements. The bargaining units are now in various stages of the contract ratification process.

H U M A N R E S O U R C E S (HR)

MANAGEMENT EXCELLENCE

Conducted first all-manager Management Forum with participation by over 240 managers. Focus of the day was on communicating expectations of managers, aligning the management team to establish effective people management as a core managerial competency, providing guidance on preventing legal and employee relations issues and introducing a practical management tool for effective performance coaching. During the evening session, Director David De Jesus offered insights into the Board‘s perspective on these issues.

HR EXCELLENCE

Working closely with Water System Operations to integrate the new Human Resources Manager III role into operational activities.

DEVELOP PARTNERSHIPS WITH LABOR

After 2009-14 contract agreements we are positioning for second phase of re-openings after contract ratifications.

Employee Relations staff also completed work on the third edition of the Manager‘s Guide to Employee Relations, as well as a new companion Pocket Guide to Employee Relations – Navigating Through 11 Key Challenges. Both were distributed at the July 16, Management Forum.

P E R F O R M A N C E MANAGEMENT

Continuing prototyping of an i m p r o v e d P e r f o r m a n c e Management System consistent with high performance workplace principles with the HR Advisory Council.

L E A R N I N G A N D DEVELOPMENT

Continued to provide coaching and support to managers on organizational issues and

p e r s o n a l d e v e l o p m e n t . Presented draft proposals for a mentoring program and internship program to the HR Advisory Council for review.

RISK MANAGEMENT

Completed 70 incident reports communicating instances of M e t r o p o l i t a n p r o p e r t y damage, liability, workplace injuries, regulatory visits and spills.

Completed 64 risk assessments on contracts, including p r o f e s s i o n a l s e r v i c e agreements, construction contracts, entry permits, special events and film permits.


HIGH PERFORMANCE EXCELLENCE continued…….

WORKERS‘ COMPENSATION

Conducted initial investigations on 17 injury incidents and submitted 11 new claims to Metropolitan‘s Workers‘ Compensation claim administrator.

Settlements were negotiated in 5 claims and 17 claim files were closed.

Medical staff conducted medical surveillance evaluations (Medvans) at Jensen and Diemer facilities and arranged 16 medical evaluations.

Four accommodation issues were addressed.

SUSTAINABILITY IN ALL ASPECTS OF REAL PROPERTY

Two permanent easements were granted to Southern California Gas Company over property located within the Diamond Valley Lake properties. One easement is located near Angler Avenue; the second easement is along Searl Parkway. The easements correspond with the location of utility service lines to Valley-Wide Park and Recreation District, the Western Center of Archeology and Paleontology, and the DVL Visitor Center.

An entry permit was issued to Blythe Energy, LLC, to allow for construction of facilities associated with improvements to the interconnection and switch racks at Julian Hinds Pumping Plant.

The County of Riverside was issued an entry permit near Metropolitan‘s Lower Feeder and Eagle Valley property near Lake Mathews. This permit allows soil boring and standard testing for wireless signal and modulation for a proposed telecommunication facility.

PROPERTY FOR FUTURE WATER INFRASTRUCTURE AND OTHER REAL PROPERTY GOALS

A license was acquired from the City of Pasadena for the San Gabriel Tower Retrofit Project.

One temporary construction easement for the Inland Feeder project was recorded in July. The easement deed was from San Bernardino County Flood Control District, which renewed the easement through December 31, 2012.

H U M A N R E S O U R C E S (HR)

HR INFORMATION SYSTEM

Evaluated various on-line recruitment systems to determine short-list for further evaluation before selection.

Provided demonstration of MyHR for Managers, MyLearning and revised e-form tools at the Management Forum. Planning the implementation of these items.

RECREATIONAL FACILITIES DVL AND SKINNER

Staff received Board approval to proceed with advertisement of a construction contract for completing three lanes of the DVL boat ramp and to raise parking and launch fees sufficient to recover costs within approximately five years. Completion of the ramp could allow for reopening the marina to private launches in the spring of 2010.

OPERATE HEADQUARTERS FACILITY

An entry permit was issued to AltaMed Health Services to allow parking for a one-day event held at Union Station.

R E A L P R O P E R T Y D E V E L O P M E N T & M A N A G E M E N T (RPDM)

Note: Boat launch ramp is closed to private launches. 2009 usage represents January through July period.


The Business Outreach Program promoted Business and Economic Development in Southern California; increased outreach and support for Member Agencies, the Southern California Business Community and Disabled Veteran Business Community; increased awareness of our Sustainable Business Development Initiatives; encouraged businesses to participate in Metropolitan‘s water conservation programs; partnered with internal and external groups to integrate shared systems; and developed new technologies to streamline processes.

Provided support to West Basin Municipal Water District and helped them develop West Basin‘s first Procurement Fair, ―How to Do Business with West Basin,‖ modeled on Metropolitan‘s Connect 2 MET ―Procurement Advantage‖ program. Over 200 small business owners and 10 government agencies, including Metropolitan‘s Business Outreach team, participated in the morning networking and resource event.

Partnered with and Supported Member Agencies, government agencies and resource partners, and Southern California Business Community by developing and implementing a new training program ―Reflections On Leadership‖ for Metropolitan‘s Business Outreach CONNECT 2 MET series.

Metropolitan‘s executive management, women Board members, and Business Outreach staff welcomed over 300 business owners, panelists, speakers, and exhibitors to

COMMUNICATIONS

CONSERVATION EFFORTS

Staff attended the Building Industry Association of Southern California‘s Sustainable Building and Resources Conservation Workshop in Irwindale. Metropolitan staff provided an overview of the California Friendly Program and water-related rebates. Additionally, Metropolitan provided an update on regulatory matters impacting water costs within Southern California.

LEGISLATIVE AND COMMUNITY RELATIONS

WATER POLICY AND LEGISLATIVE STRATEGIES

Federal Legislative Update

Staff worked with visiting Bay-Delta Conservation Plan Steering Committee members to brief Members of Congress, House and Senate Committee Staff as well as Administration officials on current state of events related to the objective of resolving issues in the Delta.

B U S I N E S S O U T R E A C H

―Reflections On Leadership‖ Women‘s Business Conference. ―Reflections On Leadership‖ is the newest addition to Metropolitan‘s CONNECT 2 MET series. ―Reflections On Leadership‖ explored the skills and knowledge necessary to choose, to connect, to take risks and to lead. The program not only introduced participants to Metropolitan‘s women Board members and the Member Agencies they represent, it also provided information on business opportunities, and awareness of water conservation programs available to all businesses at Metropolitan and with Member Agencies.

Staff arranged meetings in Washington, D.C. for Chairman Brick to brief Members of Congress on current water challenges in Southern California.

State Legislative Update

Delta-Related Legislation

Democratic leaders from both houses have elected to utilize a two-house conference committee process as the venue for deliberation of the Delta/water use efficiency legislative package. Five bills have been stripped down to legislative intent and moved as the vehicles to conference committee [SB 12 (Simitian); SB 229 (Pavley); SB 458 (Wolk); AB 39 (Huffman) and AB 49 (Feuer)].

The conference committee will be comprised of a minimum of two Democrats and one Republican from both the Senate and Assembly. The conferees have not yet been named nor has a schedule for the committee been announced.

E X T E R N A L A F F A I R S (EA)

General Manager Kightlinger welcoming participants


State Legislative Update continued….

Delta-Related Legislation

Senate President pro Tempore Darrell Steinberg (D-Sacramento) has reiterated his intent to pass a Delta/water use efficiency legislative package to the Governor by the time the Legislature adjourns for the Fall recess in mid-September.

Metropolitan-Sponsored Legislation

All eight Metropolitan-sponsored bills are successfully moving through the legislative process. AB 49 (Feuer, D-Los Angeles) has moved into the joint water policy conference committee venue. AB 900 (DeLeon, D-Los Angeles) and AB 1253 (Fuller, R-Bakersfield), both measures to focus on Delta stressors, continue to evolve and retain strong support. SB 407 (Padilla, D-Los Angeles) has been amended recently to address concerns previously expressed by both realtors and commercial property interests.

State Budget

As of July 24, 2009, the California Legislature passed the state budget. Addressing the $26.3 billion deficit required a combination of cuts, borrowing and funding shifts. The bulk of the ―solution‖ was comprised of $16.1 billion in expenditure reductions, primarily from health and human services and education. Part of the budget package also included $1.9 billion in property tax monies borrowed from cities, counties and special districts, pursuant to Proposition 1A. However, there will be an 8 percent across the board cut,

Chairman Brick and Directors Dan Griset and Angel Santiago joined staff and five members of the Legislature for a briefing and tour of the Sacramento - San Joaquin Delta. Board members and Metropolitan staff provided information on the various stressors facing the Delta and the need for a comprehensive solution for the ecosystem, water supplies, levees and in-Delta communities. The legislators in attendance included the new chair of the Assembly Select Committee on Regional Approaches to Addressing the State‘s Water Crisis, Jose Solorio (D-Santa Ana); Assembly Member Marty Block (D-San Diego); Assembly Member Paul Fong (D-Mountain View); Assembly Member V. Manuel Perez (D-Cathedral City); and Senator Gloria Negrete McLeod (D-Chino).


eliminating any exemptions for non-enterprise districts; and, a required repayment with interest must occur by June 30, 2013. To shoulder the impact of borrowing, the package authorizes a local government-created joint powers authority to issue bonds against the state‘s repayment obligation. In addition, some notable shifts include $1.7 billion in redevelopment revenue and $876.6 million of fuel sales tax revenue. Governor Schwarzenegger used his line-item veto authority to cut $489 million in expenditures prior to signing the budget package on July 28.

Local Government Update

Staff arranged speaking opportunities for Deputy General Manager/Chief Operating Officer Debra Man and Special Projects Manager Randall Neudeck to address the Building Industry Association‘s Greater Los Angeles/ Ventura County and Orange County Chapters‘ Joint General Membership and Board of Directors. The topic of the General Membership meeting was ―Sustainable Development‖ and featured former U.S. Secretary of Housing Henry Cisneros (now Chairman of the Board for City View Development). Metropolitan‘s presentations included an overview of current state-wide challenges to water supply reliability and the possible impacts to Southern California.

Staff presented Metropolitan‘s legislative platform and reviewed current Delta water supply and quality issues local District staff for Senator Dennis Hollingsworth.

Chairman Brick addressed members of the bi-partisan Congressional Water Caucus in Washington, D.C. on the issue of managing water resources in an era of global climate change and other challenges.

Chairman Brick, along with other Metropolitan Directors and the General Manager, participated in a National Water Policy event in the U.S. Capitol. This forum featured a reception for Members of Congress and guest speaker remarks from Senate Energy Committee Chairman Jeff Bingaman, and Representatives Mary Bono-Mack and Jim Costa. The event included a screening of the documentary film, ―The American Southwest—Are we Running Dry?,‖ and a follow up panel discussion.

COMMUNITY OUTREACH


COMMUNITY OUTREACH

Chairman Brick and the General Manager met with U.S. Department of Interior‘s Assistant Secretary for Water and Science, Ann Castle, and Michael Connor, Commissioner, U.S. Bureau of Reclamation, to discuss the regional importance of completing work on the Bay Delta Conservation Plan, as well as the importance of federal funding for local water projects under the Title XVI Program.

Metropolitan joined with Los Angeles Department of Water and Power, the City of Beverly Hills, Eastern Municipal Water District and Western Municipal Water District to host Community Leaders‘ Briefings on July 17 and 24 for Assemblyman Mike Feuer and Senator John Benoit, respectively. In addition to the legislators and General Manager Jeff Kightlinger, Directors Murray, Wunderlich and Record and LADWP Senior Assistant General Manager Jim McDaniel provided brief remarks on the current water crisis and the need for local and state-wide water supply projects, including Delta water supply reliability and water quality improvements. Combined, the events drew more than 150 local elected officials, legislative staffers and community leaders.

Staff arranged for Chairman Brick to brief local elected officials and senior city staff at the Los Angeles Independent Cities Association Conference in Rancho Bernardo on July 11. The Chairman provided an overview of the current water crisis, Metropolitan‘s Water Supply Allocation Plan and other water supply issues that affect local government and the region.

Staff presented the conservation advertising campaign at the July 29 Central Basin Municipal Water District ―Shut Your Tap!‖ Roundtable for cities and member agencies.

Staff represented Metropolitan at the dedication of the Western MWD Operation Facility and the Riverside County Fire Station at Lake Mathews.

Education, Community Relations and Other Events

DVL Inspection Trips for City of Los Angeles Department of Public Works interns—staff conducted, with Executive Office staff, two trips to DVL as part of the integration of water background and issues for more than 50 high school and college summer interns and conducted a DVL inspection trip for more than 100 University of La Verne students.

Staff conducted a classroom presentation to 25 students at Washington O.H. School in Redondo Beach.

Staff operated booths for the LA Sustainability Summit at the


Getty Center and Assembly Speaker Karen Bass‘ Green Jobs Fair and Conference in downtown Los Angeles.

Staff participated in a meeting with Southern California Edison public affairs staff regarding construction of the 66kV Sub-Station.

Staff participated in meetings with City of La Verne staff regarding the Weymouth Solar Project; the city of San Dimas public works staff regarding the Cross Connection permits for contractor; and the city of Hemet Traffic Commission regarding the Searl Parkway extension.

Media

Arranged video interview of Chairman Tim Brick by Emanuel Kaplan of the ―Six Billion Others Project.‖ The video, about water scarcity and climate change, will be shown at the international climate change conference in Copenhagen in December.

Issued press releases: Thomas P. Evans being seated as a new member of the Board of Directors; authorization by the Board for the completion of the boat ramp at Diamond Valley Lake; acknowledging President Obama and California‘s congressional delegation for providing the state with federal stimulus funding as part of the American Recovery and Reinvestment Act of 2009.

Arranged interviews with General Manager Kightlinger and reporter for USA Today for a story about water supply challenges facing Southern California and a reporter for the San Francisco Chronicle about differences in water agency jurisdictions in Southern California and the Bay Area.

Coordinated interview between water quality‘s Mic Stewart and Associated Press reporter to discuss ongoing efforts to control quagga mussels in Metropolitan‘s system.

Facilitated interview between Assistant General Manager/Chief Financial Officer Brian Thomas and Bloomberg News reporter Mike Quint to discuss Metropolitan‘s applying principles of corporate finance in the municipal bond market.

Arranged interviews with Assistant General Manager/Chief Operating Officer COO Debra Man and reporters for the Los Angeles Times and the Riverside Press Enterprise to discuss Metropolitan‘s conservation credits program.

Arranged for interview of Assistant General Manager/Strategic Water Initiatives Roger Patterson by reporter for Capital Press in Sacramento for a story about the proposed 2-Gates project in the Sacramento-San Joaquin Delta.


the Skinner plant, including the ongoing construction of ozonation facilities, and Washwater Reclamation Plant 3. Over $6 million were expended on the Diemer Oxidation Retrofit. Nearly $1 million were expended on the northern and southern reaches of the Perris Valley Pipeline.

SIGNIFICANT CONTRACT

Arrowhead East Tunnel (AET)—The contractor completed the installation of the cellular grouting (grout injected between the pipe and the outer bolted-gasketed mining segments) from the City Creek Portal. The contractor also completed the final stage of grouting, termed contact grouting, to fill any voids left in the cellular grout. This now completes all grouting activities in the East Tunnel and the contractor will begin final clean-up of the tunnel. The contractor

STRATEGIC POWER / CARBON REDUCTION PLANNING

RENEWABLE ENERGY PROJECTS

Preliminary design of a 1-megawatt solar generation system for the Weymouth plant is underway.

CAPITAL INVESTMENT PLAN

ONGOING CONTRACTS

17 construction contracts and 4 related procurement contracts were ongoing through June. The total bid amount of these contracts is $931 million.

CONSTRUCTION PAYMENTS

Approximately $19 million in contract payments were made in July for construction performed in the month of June. Nearly $6 million were expended on the Arrowhead Tunnels construction. Nearly $1 million were related to work at

C O R P O R A T E R E S O U R C E S (CRG)

began installation of the pipe outside the tunnel at Strawberry Creek that connects the tunnel to the previously constructed pipeline running between the AET and Arrowhead West Tunnel. The contractor prepared for the mobilization of the cement mortar lining operation to coat the portions of tunnel that have welded steel pipe prior to final completion of construction activities on this tunnel.

Arrowhead West Tunnel (AWT)—In June, the contractor continued construction of the access structure at the Waterman Portal. The contractor completed the backfill (cellular) grouting on AWT. The contractor neared completion of the contact grouting of AWT to fill voids that typically remain after the backfill grouting.

Project Percent Complete

Skinner Treatment Plant Oxidation Retrofit and Washwater Reclamation Plant No. 3

99%

Perris Valley Pipeline, North Reach 99%

Perris Valley Pipeline, South Reach 31%

Mills Treatment Plant - Ozone Contactors No. 3 and No. 4

99%

Diemer Water Treatment Plant – Oxidation Ret-rofit Program

24%

Diemer Ozone Equipment Fabrication 95%

Air Release and Vacuum Valve Relocation for Treated Water Pipelines – Packages 4, 5, & 6

72%

Weymouth Water Treatment Plant Coagulant Tank Farm Modifications

48%

OTHER CONSTRUCTION CONTRACTS (progress through June 2009)

Waterman Portal Access Structure


Western Municipal Water District of Riverside County. Recent activities include the following:

North Reach—The contractor has completed all work and is now demobilizing from the site. The contractor finished more than 200 days beyond the contract completion date; accordingly, liquidated damages in the amount of $2.9 million have been assessed for the delay. Staff is attempting to resolve several claims submitted by the contractor.

CAPITAL INVESTMENT PLAN

PROFILE ON RECENT EVENT

Orange County Feeder Relocation Metropolitan received a request from a private developer to relocate a short portion of the Orange County Feeder near Ball Road in Anaheim. At this location, Metropolitan‘s pipeline is in permanent easement. The proposed multiple-story structure would encroach upon Metropolitan‘s easement. The developer and Metropolitan have agreed that relocation of the pipeline is mutually beneficial. The developer has submitted an initial deposit, and Metropolitan has started preparation of a reimbursement agreement to perform the work. Metropolitan has also performed the initial survey work required to commence with design.

SUPPLY AND DELIVERY RELIABILITY

Perris Valley Pipeline—This 96-inch diameter pipeline will be approximately 6.5 miles long, extending east and south from the Mills plant to provide service to Eastern Municipal Water District and

South Reach—The contractor is continuing with pipe installation. South Reach pipe installation is approximately 56 percent complete (8,975 feet out of 20,313 feet) and is scheduled to be completed in October 2009. Overall, construction is anticipated to be completed in January 2010. The contractor has encountered difficulty with disposal of pumped groundwater. Staff is coordinating with affected agencies to resolve the issue.


INFRASTRUCTURE RELIABILITY

Assess the Condition of Metropolitan‘s Prestressed Concrete Cylinder Pipe—Metropolitan has over 163 miles of PCCP within the distribution system. This program is being implemented in three phases to assess the condition of PCCP lines utilizing alternate inspection techniques.

Phase III electromagnetic inspections have been performed on the following pipelines: Box Springs Feeder, San Diego Pipeline No. 5, and Rialto Pipeline. The condition assessment identified some new distressed pipe segments. Staff is reviewing the inspection reports and evaluating data to determine if repairs are warranted. If so, staff will plan repairs. Phase III inspections are 60 percent complete and are scheduled to be completed by June 2011.

Perris Valley Pipeline South Reach – Backfill operations

Crack on the Rialto pipeline


BUSINESS PROCESSES

BUSINESS IMPROVEMENTS

Initiated Rollout of the New Fuel Management System—During the period, staff began rolling out of the new Fuel Management System to simplify fuel management, increase e f f i c i ency and improve management controls over fuel inventory. The new system automatically captures and store information from the vehicle and the fuel pump. The Fuel Management System is being deployed in phases, with July deployment of the new system taking place at the Weymouth, Diemer and Jensen treatment plants (3 of 12 sites). The remaining sites (Soto Street,

Sunset, Mills, Skinner, Lake Mathews, Hindes, Eagle, Iron, and Gene) are scheduled to follow.

Completed installation in main Board Room as part of the Headquarters Technology Upgrade pro ject—Fina l acoustics adjustments/fine tuning are underway and staff is in the process of conducting acceptance testing. During the period, installation in the main Board room was substantially completed. Board room installation and testing activities are on track, with contractor (Cibola) scheduled to turn the Boardroom over to Metropolitan for testing prior to the room‘s re-opening for the August board meeting.


Fuel Management System

700 No. Alameda Street

Los Angeles, CA 90012

General No.: 213 217-6000

General Manager: Jeffrey Kightlinger

Office of the GM No.: 213 217-6139

E-Mail:

[email protected]

The Met ropo l i tan Wate r D i s t r i c t

o f Southe rn Ca l i fo rn ia

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.

About Metropolitan

The Metropolitan Water District of Southern California is a consortium of 26 cities and water districts that provides drinking water to nearly 19 million people in parts of Los Angeles, Orange, San Diego, Riverside, San Bernardino,

and Ventura Counties.

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