Sie sind auf Seite 1von 189

SPECIAL MEETING

BOARD OF DIRECTORS
MONTECITO WATER DISTRICT
583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

WEDNESDAY OCTOBER 19, 2016


2:00 P.M.

AGENDA

1. CALL TO ORDER, ROLL CALL, DETERMINATION OF QUORUM

2. PUBLIC FORUM

(This portion of the agenda may be utilized by any member of the public to address and ask questions of the
Board of Directors on any matter not on the agenda within the jurisdiction of the Montecito Water District.
Depending upon the subject matter, the Board of Directors may be unable to respond at this time, or until the
specific item is placed on the agenda at a future MWD Board meeting in accordance with the Ralph M. Brown
Act.)

3. CONSENT CALENDAR

Following items are to be approved or accepted by vote on one motion unless a


Board member requests separate consideration:

A. Minutes of September 20, 2016

B. Payment of Bills for September 2016

C. Investment of District Funds

4. DISTRICT OPERATIONS REPORT AND GENERAL MANAGER’S REPORT

A. ACTION: Sustainable Groundwater Management Act (SGMA) - Formation


of a Groundwater Sustainability Agency (GSA) for the Montecito
Groundwater Basin
Board Meeting Agenda
October 19, 2016
Page 2 of 3

B. ACTION: Adoption of Resolution No. 2143 authorizing participation of


customers in MWD’s service area in Goleta Water District’s Recycled
Water Hauling Program

C. INFORMATION ONLY: Compliance with Senate Bill 814

D. INFORMATION ONLY: Water Works Operation Report

E. INFORMATION ONLY: District Operations (Oral report)

5. DISTRICT BUSINESS REPORT

A. MONTHLY FINANCIAL REPORTS: Water Sales Report for September


2016; Statement of Revenues and Expenditures for August 2016

B. FINANCIAL AND OPERATIONAL METRICS: Dashboard Report,


September 2016

C. ACTION: Investment of District Unrestricted Reserve Cash with


CalTRUST.

6. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. PRESIDENT’S REPORT: Director Shaikewitz

B. CENTRAL COAST WATER AUTHORITY: Director Shaikewitz

C. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION:


Director Shaikewitz

D. CACHUMA OPERATION AND MAINTENANCE BOARD: Director Morgan

E. CACHUMA CONSERVATION RELEASE BOARD: Director Morgan

F. SUPPL. WATER SUPPLY AD HOC COMMITTEE: Director Shaikewitz

G. PUBLIC INFORMATION COMMITTEE: Director Newman

a. Montecito Beautification Day, Director sign-ups

H. OPERATIONS COMMITTEE: Director Frye

I. FINANCE COMMITTEE: Director Morgan


Board Meeting Agenda
October 19, 2016
Page 3 of 3

J. APPEALS COMMITTEE: Director Abel

K. RECYCLED WATER AD HOC COMMITTEE: Director Newman

7. LEGAL MATTERS

A. Recent and Pending Legal Matters Review – Oral Report

8. DIRECTOR REQUESTS

Requests from Directors for items other than regular agenda items for the next
regular Board meeting scheduled for November 15, 2016 or any future meeting.

9. ADJOURNMENT

Note: This agenda was posted at the Montecito Water District front counter and outside display case at 5:00 p.m. on October 14,
2016. The Americans with Disabilities Act provides that no qualified individual with a disability shall be excluded from
participation in, or denied the benefits of, the District’s programs, services or activities because of any disability. If you need
special assistance to participate in this meeting, please contact the District Office at 805-969-2271. Notification at least twenty-
four (24) hours prior to the meeting will enable the District to make appropriate arrangements.

*Supporting documents for agenda items are available at the District front counter during normal business hours.

Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public
inspection in the Montecito Water District offices located at 583 San Ysidro Road, Montecito, during normal business hours.
REGULAR MEETING MINUTES
BOARD OF DIRECTORS
MONTECITO WATER DISTRICT

AT
MONTECITO FIRE PROTECTION DISTRICT
595 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

TUESDAY SEPTEMBER 20, 2016


2:00 P.M.

1. CALL TO ORDER, ROLL CALL, DETERMINATION OF QUORUM


President Shaikewitz called the meeting to order at 2:00 p.m.

Directors Present:
Directors Jan E. Abel, Samuel Frye, W. Douglas Morgan, Charles Newman, and
Richard Shaikewitz

Directors Absent:
None

Staff Present:
Nick Turner, General Manager
Edward Lyons, Business Manager
Bob Cohen, General Counsel
Lois Werner, Recording Secretary

Guests Present: (18 were present, including the following)


Dale Francisco, Cachuma Conservation Release Board
Alex Bennett, Heal the Ocean
Carolee Krieger, Cal-WIN
Bob Hazard, Montecito Journal
Vicki Hazard, District customer
Ken Coates, District customer
Sam Leno, District customer
Pamela Leno, District customer
Warner Owen, MSD
Diane Gabriel, MSD
Tom Mosby, District customer
Donna Senauer, District customer

Section 3-A
Page 1
Board Meeting Minutes
September 20, 2016
Page 2 of 6

2. PUBLIC FORUM

Ms Krieger addressed the Board regarding State Water issues.

3. CONSENT CALENDAR

Following discussion it was moved by Director Frye, seconded by Director Morgan


and carried, with Directors Abel, Frye, Morgan, Newman, and Shaikewitz voting in
favor to approve Consent Calendar items A, B & D as corrected. After further
discussion it was moved by Director Frye, seconded by Director Morgan and carried,
with Directors Abel, Frye, Morgan, Newman, and Shaikewitz voting in favor to
approve Consent Calendar item C as presented.

4. DISTRICT OPERATIONS REPORT AND GENERAL MANAGER’S REPORT

A. Emergency Pipeline Replacement Project on Hot Springs Road

Mr. Turner presented this item and responded to questions from Directors
and members of the public. Following discussion it was moved by Director
Newman, seconded by Director Abel and carried, with Directors Abel,
Frye, Morgan, Newman, and Shaikewitz voting in favor, to authorize and
approve the emergency replacement of the Hot Springs Road water main
from East Valley Road north approximately 1,060 feet and appropriate
funds in the amount of $160,000 from unrestricted reserves for this project.

B. Participation in CalWARN (California Water/Wastewater Agency Response


Network); MWD Resolution No. 2142

Mr. Turner presented this item and responded to questions from Directors
and members of the public. Following discussion it was moved by Director
Frye, seconded by Director Newman and carried by the following roll-call
vote to adopt Resolution No. 2142 formally authorizing District
membership in the CalWARN 2007 Omnibus Mutual Assistance
Agreement and to notify the CalWARN Region 2 representative of this
District action, forwarding the executed resolution and emergency contact
information, provided District ACWA-JPIA coverage allows.

AYES: Directors Abel, Frye, Morgan, Newman, and Shaikewitz

Section 3-A
Page 2
Board Meeting Minutes
September 20, 2016
Page 3 of 6

NOES: none

ABSENT: none

ABSTAIN: none

C. Import of Recycled Water into MWD’s service area from Goleta Water
District for application on landscaping

Mr. Turner presented this item and responded to questions from the Board
and members of the public. The Ad Hoc Recycled Water Committee will
continue working with Counsel and GWD on this matter.

D. Progress update on desalination negotiations with the City of Santa


Barbara

Mr. Turner reported to the Board on progress made in negotiating with the
City of Santa Barbara on regional use of the Charles E. Meyer
Desalination facility.

E. State Water Resources Control Board Draft Order on Lake Cachuma


(Presentation by CCRB Interim General Manager Dale Francisco)

Mr. Francisco presented this item to the Board and responded to questions
from Directors and members of the public.

F. Update on Fish Rescue at Jameson Lake

Mr. Turner presented this item and responded to questions from Directors
and members of the public.

G. Water Supply Outlook and Water Works Report (Presentation)

Mr. Turner presented this item via PowerPoint and responded to questions
from Directors and members of the public.

H. District Operations (Oral report)

Mr. Turner reported on District projects and activities not covered


elsewhere in the agenda.

Section 3-A
Page 3
Board Meeting Minutes
September 20, 2016
Page 4 of 6

5. DISTRICT BUSINESS REPORT

A. MONTHLY FINANCIAL REPORTS: Water Sales Report for August 2016;


Statement of Revenues and Expenditures for July 2016

Mr. Lyons presented these reports.

B. FINANCIAL AND OPERATIONAL METRICS: Dashboard Report, August


2016

Mr. Lyons presented this report.

C. QUARTERLY INVESTMENT REPORT AT JUNE 30, 2016

Mr. Lyons presented this report.

D. ACTION: CASH AND RESERVE REPORT AT JUNE 30, 2016

Mr. Lyons presented this item. Following discussion it was moved by


Director Newman, seconded by Director Morgan and carried, with
Directors Abel, Frye, Morgan, Newman, and Shaikewitz voting in favor, to
allocate funds from unrestricted cash on hand to the appropriate
designated reserves as recommended by the Finance Committee.

6. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. PRESIDENT’S REPORT

Director Shaikewitz noted that the SB City Council was considering a ban
on outdoor grass watering. He mentioned articles on State consideration
of "Direct Potable Reuse" of waste water and looking at "contaminants of
emerging concern". He also mentioned a report from UCLA indicating that
California may be at the beginning of a "mega drought" of very long
duration.

B. CENTRAL COAST WATER AUTHORITY

Director Shaikewitz reported on the activities of the CCWA.

C. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION

Director Shaikewitz reported on the activities of the SB CSDA

Section 3-A
Page 4
Board Meeting Minutes
September 20, 2016
Page 5 of 6

D. CACHUMA OPERATION AND MAINTENANCE BOARD

Director Morgan reported on recent COMB activities.

E. CACHUMA CONSERVATION RELEASE BOARD

Director Morgan reported on recent CCRB activities.

F. SUPPL. WATER SUPPLY AD HOC COMMITTEE

Director Newman reported on the activities of the Supplemental Water


Supply ad hoc committee.

G. PUBLIC INFORMATION COMMITTEE

a. Proposal to Schedule Public Information/Community Meeting

Directors Newman reported on the activities of the PI Committee,


he noted that the October 18 evening public meeting is focusing on
water supply and desal, with a presentation from our desal financial
advisor. At Director Newman's request Mr. Lyons reported that staff
is close to hiring a PI staff member.

H. OPERATIONS COMMITTEE

Director Frye reported that the activities of the Operations Committee had
been covered elsewhere in the agenda.

I. FINANCE COMMITTEE

Director Morgan reported that the activities of the Finance Committee had
been covered elsewhere in the agenda.

J. APPEALS COMMITTEE

Director Abel reported that the Committee will meet next week.

K. RECYCLED WATER AD HOC COMMITTEE

Director Newman reported that the Committee will be meeting as needed.

7. LEGAL MATTERS

A. Recent and Pending Legal Matters Review – Oral Report

Section 3-A
Page 5
Board Meeting Minutes
September 20, 2016
Page 6 of 6

Mr. Cohen reported on legal matters of interest to the Board.

B. CLOSED SESSION: CONFERENCE WITH LEGAL COUNSEL –


ANTICIPATED LITIGATION Government Code Section 54956.9(D)(2) (1
Case)

The Board adjourned to closed session at 4:48 p.m.

The Board reconvened in open session at 5:38 p.m.

Report from closed session: The Board received a report from Counsel
and provided direction to Counsel; no further action was taken.

8. DIRECTOR REQUESTS

Director Newman requested that the Board discuss holding all regular Board
meetings at the Fire District facility. There were no other requests from Directors for
items other than regular agenda items for the next regular Board meeting scheduled
for October 19, 2016 or any future meeting.

9. ADJOURNMENT
There being no further business to come before the Board, the meeting was adjourned
at 5:40 p.m.

Approved:

________________________________
Richard Shaikewitz, President

Attest:

_________________________________
Nick Turner, Secretary

Section 3-A
Page 6
MONTECITO WATER DISTRICT
PAYMENT OF BILLS
TOTAL DISBURSEMENTS SUMMARY
September 17, 2016 through October 14, 2016

SECTION: 3-B

AP CHECK REGISTER TOTAL $400,887.17

CHECKS NOT ON REGISTER


09/19/2016 VOID CK # 61504 - OKERLAND (277.69)
09/19/2016 Ck #61641 - Re-Issue of Ck#61504 277.69
Checks $0.00

NET PAYROLL ACH DIRECT DEPOSITS 1

Pay Per end 9/16/2016 Pay Period #19 $ 56,581.54


Pay Per end 9/30/2016 Pay Period #20 50,908.87

Payroll Direct Deposits $107,490.41

INTERNAL WIRE TRANSFERS BETWEEN MWD CASH AND INVESTMENT ACCOUNTS 3

09/27/2016 Wells Fargo to LAIF 1,500,000


10/14/2016 Wells Fargo to LAIF 600,000

NET INTERNAL WIRE TRANSFERS $ 2,100,000.00

1
The net payroll direct deposit is the payroll that is deposited into employee bank accounts through an ACH. Payments
for employee benefits and payroll taxes, both the employee and employer portions, are recorded on the ratification list,
therefore are not included in the net payroll direct deposit.
2
External transfers out of MWD accounts are wire transfers which are made periodically for debt service payments, the
annual fixed State Water Project payment, and additional water purchases to CCWA

3
Internal transfers between accounts held by Montecito Water District are made periodically. A transfer may be made to
the operating account from LAIF when funds are immediately needed for the payment such as debt service, the annual
fixed State Water Project payment and additional water purchases to CCWA . Funds may be transferred from the
operating bank account to LAIF to invest available funds until they are needed for the payment of bills.

Section 3-B
Page 1
Montecito Water District
Check Register
September 17, 2016 through October 14, 2016

Number Pay Date Vendor Amount Description / Payee


0 9/19/2016 HARTFORD LIFE INSURANCE CO 25.00 BI-WEEKLY PY CONTRIBUTION
0 10/03/2016 HARTFORD LIFE INSURANCE CO 25.00 BI-WEEKLY PY CONTRIBUTION
0 9/19/2016 CITISTREET - CALPERS DEF 2,665.07 BI-WEEKLY PAYROLL CONT
0 9/19/2016 CITISTREET - CALPERS DEF 209.79 BI-WEEKLY LOAN PYT
0 10/03/2016 CITISTREET - CALPERS DEF 2,665.07 BI-WEEKLY PAYROLL CONT
0 10/03/2016 CITISTREET - CALPERS DEF 209.79 BI-WEEKLY LOAN PYT
0 9/19/2016 INTERNAL REVENUE SERVICE 12,295.03 941 TAX
0 9/19/2016 INTERNAL REVENUE SERVICE 11,183.86 941 TAX
0 9/19/2016 INTERNAL REVENUE SERVICE 2,615.60 941 TAX
0 10/03/2016 INTERNAL REVENUE SERVICE 12,235.45 941 TAX
0 10/03/2016 INTERNAL REVENUE SERVICE 14,045.67 941 TAX
0 9/19/2016 CALPERS (85.40) Bi-Weekly PY Contribution
0 9/19/2016 CALPERS (321.52) Bi-Weekly PY Contribution
0 9/19/2016 CALPERS (127.79) Bi-Weekly PY Contribution
0 9/19/2016 CALPERS (35.73) Bi-Weekly PY Contribution
0 9/19/2016 CALPERS 473.87 Bi-Weekly PY Contribution
0 9/19/2016 CALPERS 601.17 Bi-Weekly PY Contribution
0 9/19/2016 CALPERS 3,384.94 Bi-Weekly PY Contribution
0 9/19/2016 CALPERS 1,529.02 Bi-Weekly PY Contribution
0 9/19/2016 CALPERS 2,668.33 Bi-Weekly PY Contribution
0 9/19/2016 CALPERS 1,205.29 Bi-Weekly PY Contribution
0 9/19/2016 CALPERS 1,234.44 Bi-Weekly PY Contribution
0 9/19/2016 CALPERS 225.98 Bi-Weekly PY Contribution
0 10/02/2016 CALPERS 6,839.15 Bi-Weekly PY Contribution
0 10/02/2016 CALPERS 4,026.07 Bi-Weekly PY Contribution
0 9/19/2016 EMPLOYMENT DEVELOP DEPT. 4,088.17 Bi-Weekly Contribution
0 10/03/2016 EMPLOYMENT DEVELOP DEPT. 3,503.81 Bi-Weekly Contribution
0 09/19/2016 BENEFLEX INC 778.55 FSA DEDUCTION PAYMENT
0 10/03/2016 BENEFLEX INC 789.04 FSA DEDUCTION PAYMENT
0 9/27/2016 BENEFLEX INC 113.00 FSA ADMIN FEES-AUG 2016
0 10/06/2016 PAYLOCITY CORPORATION 1,697.25 IMPLEMENTATION FEES
0 9/19/2016 LINCOLN FINANCIAL GROUP 2,150.00 BI-WEEKLY PY CONTRIBUTION
61642 9/19/2016 COMPUVISION 2,055.89 DEP-COMPUTER PURCHASE
61643 9/19/2016 JEFFERY KENT PROBER 2,620.00 JAMESON DAM DIVERSION
61644 9/19/2016 LINCOLN FINANCIAL GROUP 825.31 LTD INS PREM-OCT 2016
61645 9/19/2016 UNITED HEALTHCARE INS CO 177.12 RETIREE INS-AYALA-OCT 2016
61646 9/27/2016 PATRICK NOVESKI 200.00 TRUCK DECALS
61647 9/28/2016 AQUA-FLO SUPPLY 39.27 SMALL TOOLS-TRUCK #152
61648 9/28/2016 AQUA-METRIC SALES COMPANY 33.71 METER SUPPS
61649 9/28/2016 AT&T MOBILITY 899.58 MO SVC-8/12-9/11/16
61650 9/28/2016 BEDROCK BUILDING SUPPLIES 221.40 SHOP SUPPS
61651 9/28/2016 BILL ALCALA 90.00 FLEET WASHING 9/26/16
61652 9/28/2016 BRENNTAG PACIFIC INC 2,911.13 CHEM SUPPS-ORTEGA CHLOR
61653 9/28/2016 CALIFORNIA ELECTRIC SUPPLY 72.73 SUPPS-EAST VLY PUMP STATION
61654 9/28/2016 CARP VALLEY WATER DIST 1,509.71 ORTEGA CHLOR COSTS-JUL 2016
61654 9/28/2016 CARP VALLEY WATER DIST 1,993.36 ORTEGA CHLOR COSTS-AUG 2016

Section 3-B
Page 2
Number Pay Date Vendor Amount Description / Payee
61655 9/28/2016 CASCADE WELL & PUMP CO. 2,500.00 PUMP INSPECT-ENNIS#2 WELL
61656 9/28/2016 COHEN & BURGE LLP 29,256.00 LEGAL EXPENSE #W5786
61657 9/28/2016 COLANTUONO, HIGHSMITH & WHATLEY, PC 37.50 LEGAL EXPENSE
61658 9/28/2016 COMPUVISION 695.00 DATTO CLOUD BACK-UP-OCT 2016
61659 9/28/2016 COX COMMUNICATIONS 575.44 MO SVC-BVTP
61660 9/28/2016 DOANE AND HARTWIG WATER SYSTEMS 1,413.34 C12 PUMP CHECK VALVE KITS-BVTP
61661 9/28/2016 ELLISON, SCHNEIDER & HARRIS LLP 3,618.25 LEGAL EXPENSE
61662 9/28/2016 FEDEX 25.80 OVERNITE MAILING COSTS
61663 9/28/2016 FERGUSON WATERWORKS #1083 183.22 INVENT STOCK
61664 9/28/2016 FRED C GILBERT CO 200.40 WELL SUPPS
61665 9/28/2016 FRONTIER 55.65 MO SVC-JAMESON WEATHER STAT
61666 9/28/2016 HACH COMPANY 912.45 LAB SUPPS-BVTP-DTP
61667 9/28/2016 JUAN O.'S MOBILE REPAIR & TUCKING INC 285.00 WTR TRUCK FOR FLUSHING
61668 9/28/2016 LASH CONSTRUCTION INC. 933.76 SHO SUPPS-ROAD BASE
61669 9/28/2016 MAURICE DUCA 555.68 CUSTOMER REFUND
61670 9/28/2016 McCALL'S METERS INC 82.62 METER TESTING/2 METERS
61671 9/28/2016 MCCORMIX CORP. 3,669.17 DIESEL FUEL-EV PMP/FUEL PURCH
61672 9/28/2016 PEABODY'S RESTAURANT 321.60 CUSTOMER PROJECT REFUND
61673 9/28/2016 EDWARD M PERRY JR 700.00 REPAIRS-BVTP
61674 9/28/2016 RICHARD SHAIKEWITZ 217.16 REIMB TRAVEL EXPENSE
61675 9/28/2016 S.B. HOME IMPR CNTR 9.71 SUPPS-JAMESON LAKE
61676 9/28/2016 ZEE MEDICAL SERVICE #34 250.45 SUPPS/SHOP/BVTP
61677 9/28/2016 FRONTIER 104.81 MO SVC-JAMESON LAKE
61678 9/28/2016 FRONTIER 41.95 MO SVC-TELEMETRY LINE
61679 9/28/2016 GOVINVEST INC 1,200.00 GASB 68 REPORTS
61680 9/28/2016 WELLS FARGO 3,062.15 TRAINING/SUPPS/MISC/FEES
61681 9/30/2016 MWD PETTY CASH 149.89 REIMB PETTY CASH
61682 9/30/2016 STATE WATER RESOURCES CONTROL BD 90.00 D3 RENEWAL-AUSTIN PRINCE
61683 10/03/2016 LOUISE CHADWICK 31.81 REIMBURSEMENT SUPPLIES
61684 10/03/2016 PITNEY BOWES 300.00 POSTAGE-MAIL MACHINE
61685 10/03/2016 V3 CORPORATION 1,177.20 POSTAGE-DESAL MEETING NOTICE
61686 10/03/2016 CHAD HURSHMAN 109.14 REIMBURSEMENT SUPPLIES
61687 10/06/2016 ACWA/JPIA 56,254.00 16/17 AUT0/GEN LIABILITY PROG
61688 10/06/2016 ARCADY DISTRIBUTING 126.60 OFFICE SUPPS
61689 10/06/2016 BRENNTAG PACIFIC INC 1,027.46 SUPPS - DTP
61690 10/06/2016 COMPUVISION 1,788.98 TERMINAL SERVER PDF PROGRAM
61691 10/06/2016 ECHO COMMUNICATIONS 148.54 AFTER HOUR SVC-SEPT 2016
61692 10/06/2016 ELECTRIC PARTS CENTER 4,581.37 SUPPS-EVR PUMP/WELL SUPPS
61693 10/06/2016 FRONTIER 60.86 MO SVC-1075 TORO CYN RD
61694 10/06/2016 JP'S BEES 175.00 BEE REMOVAL-421 LAMBERT RD
61695 10/06/2016 LASH CONSTRUCTION INC. 5,780.00 ASPHALT REPAIRS-1030 HOT SPRGS
61696 10/06/2016 MONTECITO FIRE DISTRICT 6,110.55 DIESEL FUEL USE 6/23/15-9/9/16
61697 10/06/2016 MONTECITO JOURNAL 302.90 AD-SEPT 2016 METER READ DATES
61698 10/06/2016 QUILL CORPORATION 148.29 OFFICE SUPPS
61699 10/06/2016 SMARDAN HATCHER CO. 165.87 SUPPS-OFFICE WELL UPGRADE
61700 10/06/2016 UPS 12.39 POSTAGE-RETURN ITEM
61701 10/11/2016 ACWA-JPIA 31,936.23 INS PREMIUMS-NOV 2016
61702 10/11/2016 BIG GREEN CLEANING COMPANY 292.00 MONTHLY SVC-OCT 2016
61703 10/11/2016 BILL ALCALA 90.00 FLEET WASHING 10/10/16
61704 10/11/2016 HCD RENEWAL 36.00 OFFICE TRAILER 2016 REG FEES

Section 3-B
Page 3
Number Pay Date Vendor Amount Description / Payee
61705 10/12/2016 BRUCE GOETTING 100.00 COST SHARE-DOULTON GATE REP
61706 10/12/2016 CACHUMA CONSERV RELEASE BOARD 25,466.50 2016/17 2ND QTR BUDGET COSTS
61707 10/12/2016 S.B. CNTY WATER AGENCY 9,458.00 2016/17 CLOUD SEEDING PROGRAM
61708 10/14/2016 DOUG FORD 2,247.00 CUST REFUND - METER CONN FEE
61709 10/14/2016 EL MONTECITO PRESBYTERIAN CHURCH 318.00 10/18/16 ROOM USAGE FEES
61710 10/14/2016 A-OK POWER EQUIPMENT 15.60 AUTO SHOP REPAIR SUPPS
61711 10/14/2016 ACWA/JPIA 13,257.00 3RD QTR PAYROLL REPORT
61712 10/14/2016 ALEXANDER'S CONTRACT SVC 6,131.39 MTR READING SVC-SEPT 2016
61713 10/14/2016 ALL AROUND LANDSCAPE SUPPLY 224.37 SUPPS-BVTP/DTP/WELLS
61714 10/14/2016 AQUA-FLO SUPPLY 37.95 SUPPS-BV RESERVOIR MIXER LINE
61715 10/14/2016 BLUE TARP FINANCIAL INC 116.87 AUTO SHOP REPAIR SUPPS
61716 10/14/2016 CALIFORNIA ELECTRIC SUPPLY 87.85 SUPPS-OFFICE WELL
61716 10/14/2016 CALIFORNIA ELECTRIC SUPPLY 206.22 SUPPS-OFFICE WELL
61717 10/14/2016 CARQUEST AUTO PARTS 898.48 SUPPS/AUTO/BVTP/WELLS
61718 10/14/2016 CENTRAL MACHINE & WELD 880.00 INSTALL ROMERO MOTOR BCK-UP
61719 10/14/2016 CHEVRON U.S.A. INC. 3,213.41 FUEL PURCHASES
61720 10/14/2016 COASTLINE EQUIPMENT 667.41 BACKHOE CYLINDER REPAIR
61721 10/14/2016 COLANTUONO, HIGHSMITH & WHATLEY, PC 2,512.50 LEGAL EXPENSE
61722 10/14/2016 COMPUVISION 1,775.00 NETWORK-IT SVC-SEPT 2016
61723 10/14/2016 COX COMMUNICATIONS 723.50 MO SVC-OFFICE
61724 10/14/2016 DATAPROSE LLC 2,451.23 MAIL SVC-SEPT WATER STMNTS
61725 10/14/2016 DOCUPRODUCTS 283.37 COPIER MAINT 7/11/16-10/10/16
61726 10/14/2016 ELECTRIC PARTS CENTER 1,673.76 REPAIRS SUPPS-BVTP
61726 10/14/2016 ELECTRIC PARTS CENTER 1,922.19 SUPPS-OFFICE WELL
61727 10/14/2016 EMPLOYEE RELATIONS INC 103.35 PRE-EMPLOYMENT SEARCH FEES
61728 10/14/2016 FERGUSON WATERWORKS #1083 891.56 INVENT STOCK-DIP PIPE
61729 10/14/2016 FGL ENVIRONMENTAL 1,621.00 WTR SAMPLE ANALYSIS-SEPT 16
61730 10/14/2016 VOID -
61731 10/14/2016 GRAINGER INC. 1,478.76 SUPPS-PUMPS STA/OFF WELL
61732 10/14/2016 HOME DEPOT CREDIT SERVICES 88.89 SUPP/SHOP/DISTRIBUTION
61733 10/14/2016 IRON MOUNTAIN 37.91 SHRED SERVICE 8/24-9/27/16
61734 10/14/2016 LASH CONSTRUCTION INC. 392.16 DUMP FEES/ROAD BASE
61735 10/14/2016 MARBORG DISPOSAL CO. 4,868.50 MO SVC-3/11/25 YRD ROLL OFFS
61736 10/14/2016 MCCORMIX CORP. 198.48 FUEL PURCHASES
61737 10/14/2016 MISSION LINEN SUPPLY 1,155.33 MONTHLY SVC-SEPT 2016
61738 10/14/2016 VOID -
61739 10/14/2016 MONTECITO VILGE HARDWARE 98.45 SUPPS-VARIOUS SITES
61740 10/14/2016 NBS GOVERNMENT FINANCE GROUP 2,950.00 2016 ADMIN FEES-WAC TAX ROLLS
61740 10/14/2016 NBS GOVERNMENT FINANCE GROUP 8,821.25 RATE STUDY - SEPT 2016
61741 10/14/2016 PITNEY BOWES INC 132.87 QTRLY MAINT-MAIL MACHINE
61742 10/14/2016 PROCESS SOLUTIONS INC 13,960.00 BV RES-TANK SHARK MIXING SYS
61743 10/14/2016 QUILL CORPORATION 1,174.07 OFFICE/BVTP SUPPS
61744 10/14/2016 RAUCH COMMUNICATION 9,496.90 PUBLIC INFO/WEB UPDATES
61745 10/14/2016 SATCOM DIRECT INC 41.95 JUNCAL SATELITE PHONE-SEPT 16
61746 10/14/2016 SMARDAN HATCHER CO. 528.23 SUPPS-BVTP
61747 10/14/2016 SOUTHERN CALIF GAS CO 54.09 MO SVC-OFFICE-SEPT 2016
61748 10/14/2016 STRADLING, YOCCA, 79.00 LEGAL EXPENSE
61749 10/14/2016 THE JOHNSON GROUP LTD 840.00 RISK MANAGEMENT SVC-AUG 16
61749 10/14/2016 THE JOHNSON GROUP LTD 100.00 RISK MANAGEMENT SVC-SEPT 16
61750 10/14/2016 UNDERGROUND SERVICE ALRT 103.50 USA TICKETS-SEPT 2016
61751 10/14/2016 VENTURA STEEL, INC. 199.26 AUTO SHOP SUPPS
61752 10/14/2016 WELLS FARGO 2,065.05 MONTHLY CHRGS-SEPT 2016
61753 10/14/2016 WESTERN EXTERMINATOR CO 235.00 MO SVC-OFF/SHOP/BVTP
61754 10/14/2016 WESTERN WATER WORKS 965.56 SUPPS-OFFICE WELL
61754 10/14/2016 WESTERN WATER WORKS 2,001.43 SUPPS-OFFICE WELL
61755 10/14/2016 ZACHARIAS HUNT 3,172.65 GIS TECH SVC-SEPT 2016
400,887.17

Section 3-B
Page 4
MONTECITO WATER DISTRICT
MEMORANDUM

SECTION: 3-C

DATE: OCTOBER 19, 2016

TO: BOARD OF DIRECTORS

FROM: BUSINESS DEPARTMENT

SUBJECT: INVESTMENT OF DISTRICT FUNDS

RECOMMENDATION:

Ratify the October 14, 2016 transfer of $600,000 from the District’s Wells Fargo operational
account to the District’s LAIF/General Capital Repair & Replacement/Operations fund
account.

DISCUSSION:

Due to the timing of receipts of revenues and payment obligations, funds have been made
available for investment. $600,000 was transferred on October 14, 2016 from the the
District’s Wells Fargo operational account to the District’s LAIF/General Capital Repair &
Replacement/Operations fund account.

For your information, the District’s current invested reserve portfolio as of October 19, 2016 is
as follows:

Unrestricted Reserve Funds Principal


LAIF/General Capital Repair & Replacement/Operations 11,539,677
CCWA Credit Balance Fund 170,569
TOTAL $ 11,710,246

Restricted Reserve Funds Principal


Bank of New York-2010 A Bond Reserve Fund $1,461,243
California Bank & Trust DWR Ortega Loan Reserve 590,402
CCWA Rate Coverage Reserve Fund 1,460,739
TOTAL $ 3,512,384

Note: The LAIF interest rate for September 2016 was .634%.

\winword\finance\invlaif

Section 3-C
Page 1
MONTECITO WATER DISTRICT
BOARD MEMORANDUM

SECTION: 4-A

DATE: OCTOBER 19, 2016

TO: BOARD OF DIRECTORS

FROM: OPERATIONS COMMITTEE AND GENERAL MANAGER

SUBJECT: FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA)

RECOMMENDATION:
The Operations Committee and General Manager recommend the approval of Phase II
of the scope of work and fee schedule received from Dudek for the formation of
Groundwater Sustainability Agency (GSA) under the Sustainable Groundwater
Management Act (SGMA) for the Montecito Groundwater Basin; in the amount of
$90,552.

DISCUSSION:
Background
California’s groundwater provides approximately half of the State’s water supply, and in
some parts of Santa Barbara County (County), is the sole source of water to sustain
agriculture and domestic uses. In other areas of the County, groundwater is an integral
part of multi-source water supply portfolios and is critical in times of prolonged drought.
Unlike surface supplies, groundwater aquifers are not subject to losses due to
evaporation.
Many California groundwater aquifers are adversely impacted by overuse. Such impacts
include significant decline in water storage and water levels, degradation of water
quality, sea water intrusion and land subsidence resulting in some cases in the
permanent loss of storage capacity. Recognizing the importance of groundwater and
the consequences of overuse, Governor Brown signed into law a package of bills
addressing the sustainable management of groundwater in California. Collectively,
these bills are the Sustainable Groundwater Management Act (SGMA).
SGMA, which became effective on January 1, 2015, requires the sustainable
management of those groundwater basins designated by the State Department of
Water Resources (DWR) as medium and high priority by the year 2042. DWR defines
“sustainability” as the absence of negative impacts such as groundwater depletion,
water quality degradation, and land subsidence. DWR’s groundwater basin priority
designations are based on several factors, including population, number of groundwater
wells, overdraft, land subsidence and water quality conditions. The Montecito
Groundwater Basin is designated by DWR as “very low” priority, meaning that SGMA
compliance is not currently required.

Section 4-A
Page 1
Management of the Montecito Groundwater Basin
Groundwater continues to be an integral part of the District’s water supply portfolio,
currently making up 10-15% of its total annual supply. At this time, the District is
pumping approximately 550 acre-feet per year from the Montecito Groundwater Basin.
Other groundwater pumpers in the basin include hundreds of privately owned wells. It’s
been reported by Santa Barbara County that hundreds, possibly over a 1,000, new well
permits have been issued since 2014. The current number of fully developed and
active privately owned wells is unknown, as is the amount of groundwater pumped from
those wells, although it is estimated to be 700-1000 acre-feet per year. This makes the
sound management of the groundwater basin difficult, if not impossible.
Groundwater rights within the Montecito Groundwater Basin are privately owned. This
private ownership prevents the District from accessing, monitoring and controlling the
use of these privately-owned wells. Although many of these wells are low producing,
collectively their production is thought to be substantial. It is unknown how the current
yield of the basin compares to the safe yield, especially during this current drought.
Commonly, well production increases during droughts to compensate for the reduction
in other surface water supplies; this results in a reduction in production in some wells
and failure of others. When droughts persist, this practice of excessive pumping
compounds the negative impacts to our groundwater supply. Not only is our
groundwater supply being depleted, increased production during extended periods of
drought could result in or exacerbate seawater intrusion, which could take decades to
recover from. Without a better understanding of the total production from the basin,
managing the use of groundwater in accordance with the safe yield of the basin is
impossible. SGMA provides the District with a tool to effectively manage the Montecito
Groundwater Basin which continues to be vital to our water supply.
Under SGMA, the District would have the authority to require private well owners to
register their well(s), meter their production, and provide annual production reports.
Among other benefits, SGMA would also enable the District to limit well production, if
necessary to achieve sustainability.
Managing the District’s groundwater supply responsibly is critical to ensure its long term
sustainability and reliability. Although designated by DWR as a very low priority basin,
therefore not requiring compliance with SGMA at this time, it is the District’s duty as the
local agency having statutory authority over groundwater in the Montecito Groundwater
Basin to responsibly manage the groundwater supply to safeguard this valuable
resource for its customers.
Formation of a Groundwater Sustainability Agency
In April 2016, the District obtained a proposal from Dudek to assist the District with its
implementation of the SGMA process. In June, Dudek completed Phase I work which
involved responding to Carpinteria Valley Water District and the City of Santa Barbara’s

Section 4-A
Page 2
basin boundary modification requests, which resulted in favorable responses from the
Department of Water Resources.
The next step in the SGMA process is the formation of a Groundwater Sustainability
Agency (GSA). GSA’s are responsible for the implementation of the SGMA
requirements.
Representatives of Dudek, Jane Gray and Matt Naftaly, will be at our board meeting to
present information regarding SGMA, and, more specifically, their proposal to assist the
District in the formation of a GSA for the Montecito Groundwater Basin.
Project Schedule
Because the Montecito Groundwater Basin is not currently designated by DWR as a
medium or high priority basin, the timeline specified for achieving sustainability under
SGMA is not applicable. However, the Operations Committee and General Manager
believe it would be to the District’s benefit to proceed with the SGMA process with the
ultimate goal of achieving sustainability as soon as possible.
Costs
The proposed costs, as presented in the attached proposal received from Dudek, for the
formation of a GSA (Phase 2) is $90,552 which includes 15% contingency. Funds to
cover the costs associated with the Phase 2 work have been included in the District’s
2016/17 budget in the amount of $75,000.
As a “low” or “very low” priority basin, the District is currently not eligible for State
funding, e.g. loans or grants, to cover costs associated with implementation of SGMA.
Only those basins designated by DWR as “medium” and “high” priority are eligible for
funding assistance. Based on the large number of privately owned wells that are
thought to exist in the Montecito Groundwater Basin, it is believed that DWR’s
prioritization of the basin should be revisited. Sub Task I of Dudek’s proposal includes
the re-evaluation of this ranking conducted by DWR. If the District’s end goal is to
sustainably manage the basin in accordance with SGMA, the only anticipated impacts a
change in prioritization will have will include 1) its eligibility for loan and grant funding
and the implementation schedule requirement. Dudek proposes to complete the work
associated with Sub Task 1 utilizing the remaining budget under Phase I work.
Following the formation of a GSA, the District will develop a Groundwater Sustainability
Plan (GSP) in accordance with SGMA requirements. The development of a GSP could
span several years and cost the District an additional $250,000-$300,000. Approval of
Phase III work would be needed following completion of Phase II work. Phase III costs
have been included in the District’s ongoing rate study as anticipated costs in the 2017-
18 and 2018-19 fiscal years.

Section 4-A
Page 3
Sustainable Groundwater Management
Act of 2014

Presented to the Montecito Water District


Board of Directors
October 18, 2016
Section 4-A
Page 4
What is the Sustainable
Groundwater Management Act?
• State law that regulates groundwater basins.

• Emphasizes local control.

• Local agencies must manage groundwater in “a manner


that can be maintained during the planning and
implementation horizon without causing undesirable
results.”

• SGMA is required in all medium and high priority


groundwater basins in the State. Section 4-A
Page 5
Basin Priority Criteria
• DWR uses the following criteria to determine Basin
Priority:
• Population
• Number of public and private wells
• Irrigated acreage
• Reliance on groundwater as a primary source
• Groundwater impacts including:
• Overdraft
• Land subsidence
• Water quality degradation Section 4-A
Page 6
MWD – Basin Priority
• Montecito Basin is a “very low” priority basin.
• This disadvantages the District with:
• Lack of timeline requirements per DWR/SWRCB, and
• Lack of funding opportunities per DWR.

• Basin Prioritization Discussion with DWR.


• Check DWR prioritization calculation
• One month timeline for Dudek’s work*

* Based on data availability from state sources Section 4-A


Page 7
SGMA’s Aim is to Prevent “undesirable
results”?
• Chronic lowering of Groundwater levels.

• Significant and unreasonable reduction in Groundwater


Storage.

• Significant and unreasonable degradation of water quality.

• Land subsidence due to collapsing of aquifer pore space.

• Surface water depletions that have significant and


unreasonable impacts on beneficial uses.

• Seawater Intrusion. Section 4-A


Page 8
What Does SGMA Require to
Achieve Sustainability?
• Formation of a Groundwater Sustainability
Agency (GSA)

• Development of a Groundwater Sustainability


Plan (GSP)

Section 4-A
Page 9
What is a Groundwater
Sustainability Agency (GSA)?
• GSAs are formed by local agencies that have
statutory authority over water resources within
the basin.

• Within the MWD Basin, local agencies for


GSA Formation include:
• Montecito Water District
• County of Santa Barbara (potentially)
Section 4-A
Page 10
What Powers Does A GSA Have?
• GSAs have the following powers:

• Planning (GSP);

• Financial (through fees). i.e. fee assessed on all


water users and private wells; and

• Regulatory, and enforcement powers (well


moratoria, pumping restrictions).

Section 4-A
Page 11
GSA Tools
GSA tools for managing groundwater sustainability:

• Require registration of wells;

• Require measurement of groundwater extraction;

• Require annual extraction reports;

• Impose extraction limits on individual wells;

• Assess fees to implement local GSP’s; and

• Request revisions to basin boundaries; establish new sub-basins.


Section 4-A
Page 12
Groundwater Sustainability Plan
(GSP)
• Results in “sustainable conditions” within 20
years.

• Must be approved by DWR no later than 2022


and updated every 5 years.

Section 4-A
Page 13
Groundwater Sustainability Plan
(GSP)
• GSPs must include technical information
regarding:
• Hydrogeological conditions of the aquifer;
• Historical and projected water demands;
• Potential areas of recharge;
• Measureable objectives and milestones toward
sustainability; and
• A monitoring and management plan.

Section 4-A
Page 14
Why are GSA and GSP important
for the MWD?
• Tools for the District to exercise more effective
groundwater management.

• Information and data that will enable the District


to better utilize the capacity of the basin.

• District can better exercise water resources’


stewardship.
Section 4-A
Page 15
Current Dudek GSA/GSP Work
• County of Santa Barbara Water Agency
• San Antonio Creek Groundwater Basin GSA Formation
• Cuyama Valley Groundwater Basin GSA Formation

• Fox Canyon Groundwater Management Agency


• Four (4) Groundwater Sustainability Plans for:
• Oxnard Plain
• Arroyo Santa Rosa
• Pleasant Valley
• Las Posas

Section 4-A
Page 16
DWR Grants – Proposition 1
• The Sustainable Groundwater Planning Grant
Program is funded by Proposition 1.
• Appropriations of $100 million for competitive
grants for development of sustainable
groundwater plans and projects.
• DWR will make at least 10 percent ($10 million)
of these funds available for projects that serve
severely disadvantaged communities (SDAC)
(Water Code §79774.(d)).
Section 4-A
Page 17
Questions?

Section 4-A
Page 18
October 12, 2016

Nicholas Turner, General Manager


Montecito Water District
583 San Ysidro Road
Santa Barbara, CA 93108

Subject: Sustainable Groundwater Management Act (SGMA) – Phase II, Basin


Reprioritization and GSA Formation

Dear Mr. Turner:

It was a pleasure meeting with you and the Operations Committee today. As we discussed, we
recommend that Montecito Water District (District) consider the provisions of the Sustainable
Groundwater Management Act (SGMA) as a way of fostering local control of the Basin and the
District water supplies (See attached Dudek July 14, 2016 letter proposal for a discussion of the
benefits and components of the process). Dudek has completed Phase I, which was to represent
the District in Basin Boundary modification issues proposed by neighboring basin interests.

Phase II – Sub Task 1: Basin Reprioritization

As discussed at today’s meeting, it would be of value to the District to reevaluate the priority
designation given to the Basin by the Department of Water Resources (DWR). The DWR
assigned the Basin a ranking of “very low”. This designation eliminates the requirement to
comply with the SGMA legislation and the availability of some financial advantages afforded to
“medium” and “high” priority basins.

Therefore, we propose to obtain and review the ranking conducted by DWR and conduct an
independent ranking based on the DWR method. This will require review of the data used by
DWR and in some cases reevaluation of relevant parameters using independent data sources.
Such data will include population, population growth estimates, public water supply wells, total
wells, irrigated acreage, groundwater use and reliance, and other relevant information.

We estimate a cost of $5,000 and 1 month* to conduct this analysis (See Phase II, Subtask 1 of
the attached SGMA cost table). The funds remaining on our existing contract are sufficient for
this proposed Subtask. Therefore, we can proceed with this work upon authorization from the
District.

Section 4-A
Page 19
Phase II: Groundwater Sustainability Agency formation and Governance

As shown on the attached cost estimate, this phase consists of conducting the public outreach,
planning, and governance process necessary for formation of a Groundwater Sustainability
Agency (GSA). The GSA is a required component of the SGMA process as described in the
attached July 14, 2016 proposal.

This Phase (not including Basin Reprioritization) is estimated to cost $76,292 with an additional
$14,260 for optional tasks including data management and SGMA website development. As a
low priority basin as designated by DWR, there is no required timeline for completion of this
Phase. However, Dudek recommends one year as the appropriate time frame in which to
complete this task. This would allow for consistency with DWR and adjacent basin processes. If
the Basin Reprioritization process results in the Basin being reclassified as a medium or greater
priority, it would be necessary to consult with DWR on an adjusted time frame.

Thank you for considering Dudek for this important project. Please contact me at (805) 308.8529
or mnaftaly@Dudek.com if you have any questions or need additional information.

Sincerely,

Matt Naftaly
Project Manager

Att.: October 11, 2016 Cost Estimate


July 14, 2016 Dudek Proposal for SGMA Services

*Up to 3 months, based on the availability of data from State sources

Section 4-A
Page 20
Staff and Billing Rate
Project Manager: Matt Naftaly Legal Counsel
MN JG ZC JK MM
Cost Estimate Terms: T&M, Not to exceed (TBD)
10/12/2016 $ 240.00 $ 215.00 $ 190.00 $ 140.00 $ 155.00 $ 450.00
Hours per Total
Phase Description Task Description Subtask Description Quantity Hours per Team Member Cost per task
quantity Hours
Literature review
Phase I: Basin Meetings with MWD
Draft a letter to DWR
Boundary Meetings with Carpinteria PHASE
representing the
Modification Produce alternative maps COMPLETE
District's interests
Process Produce memo for District
Produce letter to DWR
Total Phase I Cost NA
Review DWR Ranking Analysis 2 4 $ 1,040.00
Phase II - Subtask Conduct analysis to
Obtain/review relavant data 0 4 $ 560.00
1 determine proper
Conduct independent ranking analysis 2 6 $ 1,320.00
Basin priority classification for
Coordinate with DWR 2 4 $ 1,040.00
Reprioritization Basin
Prepare memo documenting results 2 4 $ 1,040.00
Total Phase II - Subtask 1 Cost $ 5,000.00
Compile stakeholders and contacts 1 12 12 12 $ 2,280.00
Produce Stakeholder Outreach and
1 12 12 12 $ 2,580.00
Engagement plan
Develop and implement a plan for addressing
Identify and engage
interested party concerns and address 1 40 40 40 $ 8,600.00
stakeholders and
ongoing concerns
develop a plan for
Phase II: assessing interested Create and distribute informational materials 1 28 28 28 $ 6,720.00
Groundwater parties
Create and maintain a data management tool
Sustainability 1 50 50 50 $ 7,750.00
(optional)
Agency
Create and maintain a dedicated website
Formation and 1 42 42 42 $ 6,510.00
(optional)
Governance
Prepare notices and conduct 5
stakeholder/workshops to inform the public 5 11 55 19 19 19 $ 12,255.00
Conduct stakeholder and select GSA members
and agency planning Attend 6 Board Meetings to provide updates
6 5 30 30 $ 7,200.00
meetings and answer questions
Compile and respond to public comments 1 20 20 10 10 $ 4,300.00

Section 4-A
Page 21
Determine and Conduct two meetings to determine
2 5 10 5 5 $ 2,275.00
implement a governance structure
governance structure
Phase II: for the GSA
Groundwater Produce and adopt necessary governance
1 30 30 10 10 10 $ 6,450.00
Sustainability documents
Agency Develop bylaws and
Develop necessary bylaws and ordinance(s) 1 30 30 30 $ 6,450.00
Formation and ordinance(s) to be
Governance adopted by the GSA Attorney review services 1 15 15 15 $ 6,750.00
Prepare and execute
the necessary Compile and submit notification materials to
1 40 40 40 $ 9,600.00
resolutions forming the DWR
GSA
Contingency (20%) $ 15,092.00
Total Phase II Cost $ 90,552.00
Total Optional Phase II Cost $ 14,260.00
Comments regarding phases:
Phase I: Basin Boundary Modification Process
Complete

Phase II: Establish Groundwater Sustainability Agency (GSA) and Governance


This phase could potentially include representing the District in GSA processes for adjacent basins

Section 4-A
Page 22
July 14, 2016

Nicholas Turner, General Manager


Montecito Water District
583 San Ysidro Road
Santa Barbara, CA 93108

Subject: Sustainable Groundwater Management Act (SGMA) – Montecito Water


District Options for implementation

Dear Mr. Turner:

As you know, the SGMA became effective January 2015 and requires the sustainable
management of all of California’s groundwater basins designated as medium or high priority by
the State Department of Water Resources (DWR). The act requires the creation of Groundwater
Sustainability Agencies (GSAs) and Groundwater Sustainability Plans (GSPs), in order to reach
a condition of sustainability by the year 2042. Sustainability is defined by DWR as the absence
of negative impacts such as groundwater depletion, water quality degradation, and land
subsidence.

As part of the SGMA process, the Carpinteria Water district applied to the DWR to modify the
boundary between the Carpinteria and Montecito Groundwater Basins to include, within the
Carpinteria Basin, the Toro Canyon area. Dudek assisted the District with evaluating and
addressing the proposed modification. On July 1, 2016, the DWR issued a draft decision denying
the modification. There is no further action required at this time.

The Montecito Groundwater Basin (Basin) has been designated as low priority by the
Department of Water Resources (DWR) for the purposes of SGMA implementation. At this
time, there is no requirement that SGMA be implemented in the Basin; likewise there is no
mandated timeline for GSA formation or GSP completion if the process is undertaken
voluntarily. As we have discussed, however, there are many advantages for the Montecito Water
District (District) to voluntarily conduct the SGMA process as outlined by the DWR at this time.
Some of these advantages are:

1. Groundwater is a critical component of Montecito’s water supply portfolio. The SGMA


process provides a management tool not otherwise available to ensure the long-term
viability of that water source. In addition, SGMA may open pathways for funding and
implementation of water related projects.

Section 4-A
Page 23
2. Due to the current drought and the increasing cost of water, there has been a dramatic
increase in the number of wells drilled within the Basin. The SGMA provides a means to
monitor groundwater use and conditions and to manage drilling, pumping, and water
quality, if necessary.

3. The implementation of an effective groundwater monitoring program will allow for early
detection of potentially irreversible impacts such as sea water intrusion and land
subsidence.

4. The entities responsible for groundwater management in all of the Santa Barbara
County’s south coast basins are currently implementing, or planning to implement, the
SGMA. Due to the proximity of these basins and their hydrogeology and land use, there
is overlap of issues associated with the Montecito Groundwater Basin. SGMA provides a
process by which to coordinate these concerns.

Dudek has provided the District with a proposal for SGMA related services for the Basin (dated
April 8, 2016). This letter modifies the scope and time frame of that proposal based on recent
SGMA developments and Dudek communications with the District. The tasks associated with
the SGMA in the Basin are presented as four separate phases. These are Phase I: Basin Boundary
Modification Process; Phase 2: Groundwater Sustainability Agency Formation and Governance;
Phase 3: Groundwater Sustainability Plan Production; and Phase 4: Grant Tracking and
Application (optional). For task and cost detail, see Appendix A. The time frame’s shown below
are suggestions only, based on Dudek’s understanding of the District’s priorities. The SGMA
schedule for medium and high priority basins is attached as Appendix B for information only.

Phase 1: Basin Boundary Modification Process

Phase 1 Timeline: Complete


Phase 1 Budget: Not Applicable

Phase 2: Groundwater Sustainability Agency Formation and Governance

SGMA requires the formation of a GSA to produce and implement a GSP and to ensure the
inclusion of the interested parties. GSAs, which represent local governance of water resources
and stewardship, are empowered with financial, regulatory, and enforcement abilities. Additional
powers may be obtained through the adoption of ordinances. However, the exercise of such
authority is not required and the SGMA largely exempts users of less than two-acre feet per year
of groundwater. GSAs are the local entities having authority over water supply, management,
and potentially land use.

Section 4-A
Page 24
Likely participants in a GSA for the Montecito Groundwater Basin include the District and
potentially the County of Santa Barbara as voting members. There is also the ability for various
stakeholders to participate in an advisory capacity. Further, the District and the Carpinteria
Water District are potential members in each of the respective Basins’ GSAs to address topics of
shared concerns. This phase could potentially include costs for Dudek to represent the District as
a participant in adjacent basin GSAs.

The SGMA legislation requires extensive outreach to stakeholders and other basin interests and
the development of an instrument of governance such as a Memorandum of Understanding or
Joint Powers Authority. It is imperative that such a document anticipate and address a range of
procedural, political, and administrative issues. See Appendix A for specific tasks related to the
GSA formation and governance.

Phase 2 Timeline: As discussed above, there is no required timeline for the conduct of
SGMA in the Basin. Dudek suggests that the process be implemented
around July of 2017 and should be completed within one year.
Phase 2 Budget: $72,620 (not including $14,260 in optional costs related to data
management and website development)

Phase 3: Produce Groundwater Sustainability Plan

The ultimate goal of SGMA is sustainable groundwater management. This is achieved through
development of the Groundwater Sustainability Plan (GSP), which synthesizes technical data and
information regarding water supply, use, and quality to develop a long-term strategy to achieve
sustainability. Such plans may require collection of data where gaps exist, the establishment of
monitoring systems, and the implementation of water projects. GSPs have a nexus with land use
planning. The cost of developing such a plan is very variable and depends on the availability of
recent technical information, the need for the establishment of monitoring networks, and the state
of proposed projects. The conduct of this phase is concurrent with or subsequent to establishment
of a GSA. Therefore, Dudek will develop a detailed scope of work and cost estimate for this
phase of SGMA as requested by the District. A coarse level estimate of cost and scope is
included in Appendix A and shown below.

Phase 3 Timeline: The timing of this process is flexible. It could be implemented in 2018
with progress and duration dictated by budget.
Phase 3 Budget: $265,020

Section 4-A
Page 25
Phase 4: Grant Tracking and Application (Optional)

Throughout the years, Dudek has obtained millions of dollars for projects and programs through
various federal and state programs for their clients. This phase provides for Dudek to monitor
potential grant opportunities, assess the potential benefit to MWD, and apply when directed to do
so by the District. Funding for SGMA implementation will be available in the next couple of
years; however, the specific of that funding is currently unknown.

Phase 4 Timeline: Continuous upon decision to move forward with SGMA


Phase 4 Budget: $28,900

Please let me know if you have any questions or want further information.

Sincerely,

_______________________
Matt Naftaly
Project Manager
Att.: Appendix A – Cost Estimate
Appendix B – SGMA Timeline

Section 4-A
Page 26
APPENDIX A
Cost Estimate

Section 4-A
Page 27
Staff and Billing Rate
Project Manager: Matt Naftaly Legal Counsel
MN JG CK JK MM
Cost Estimate Terms: T&M, Not to exceed (TBD)
$ 240.00 $ 215.00 $ 130.00 $ 140.00 $ 155.00 $ 450.00
Hours per Total
Phase Description Task Description Subtask Description Quantity Hours per Team Member Cost per task
quantity Hours
Literature review
Phase I: Basin Meetings with MWD
Draft a letter to DWR
Boundary Meetings with Carpinteria PHASE
representing the
Modification Produce alternative maps COMPLETE
District's interests
Process Produce memo for District
Produce letter to DWR
Total Phase I Cost NA
Compile stakeholders and contacts 1 12 12 12 $ 1,560.00
Produce Stakeholder Outreach and
1 12 12 12 $ 2,580.00
Engagement plan
Develop and implement a plan for addressing
Identify and engage
interested party concerns and address 1 40 40 40 $ 8,600.00
stakeholders and
ongoing concerns
develop a plan for
Phase II: assessing interested Create and distribute informational materials 1 28 28 28 $ 6,720.00
Groundwater parties
Create and maintain a data management tool
Sustainability 1 50 50 50 $ 7,750.00
(optional)
Agency
Create and maintain a dedicated website
Formation and 1 42 42 42 $ 6,510.00
(optional)
Governance
Prepare notices and conduct 5
stakeholder/workshops to inform the public 5 11 55 19 19 19 $ 11,115.00
Conduct stakeholder and select GSA members
and agency planning Attend 6 Board Meetings to provide updates
6 5 30 30 $ 7,200.00
meetings and answer questions
Compile and respond to public comments 1 20 20 10 10 $ 3,700.00

Section 4-A
Page 28
Determine and Conduct two meetings to determine
2 5 10 5 5 $ 2,275.00
implement a governance structure
governance structure
Phase II: for the GSA
Groundwater Produce and adopt necessary governance
1 30 30 10 10 10 $ 5,850.00
Sustainability documents
Agency Develop bylaws and
Develop necessary bylaws and ordinance(s) 1 30 30 30 $ 6,450.00
Formation and ordinance(s) to be
Governance adopted by the GSA Attorney review services 1 15 15 15 $ 6,750.00
Prepare and execute
the necessary Compile and submit notification materials to
1 40 40 40 $ 9,600.00
resolutions forming the DWR
GSA
Contingency (20%) $ 14,480.00
Total Phase II Cost $ 86,880.00
Total Optional Phase II Cost $ 14,260.00

Technical Advisory Group Meetings and


Phase III: Drafting the GSP 15 36 540 232 232 76 $ 115,440.00
Supporting Technical Documents
Produce document and
Groundwater associated tasks (Rough Data Analysis and GSP Drafting 1 588 588 190 144 254 $ 109,580.00
Sustainability Estimate) Public Outreach, Engagement, and
1 200 200 50 100 50 $ 40,000.00
Plan (GSP) Facilitation of Stakeholder Interests
Total Optional Phase III Cost $ 265,020.00
Phase IV: Grant
Tracking and Track funding cycles and apply for relevant grants to fund GSA and
Application 1 140 140 20 100 20 $ 28,900.00
GSP development
(Optional)
Total Optional Phase IV Cost $ 28,900.00
Comments regarding phases:
Phase I: Basin Boundary Modification Process
Complete

Phase II: Establish Groundwater Sustainability Agency (GSA) and Governance


This phase could potentially include representing the District in GSA processes for adjacent basins

Phase III: Produce Groundwater Sustainability Plan (Optional)


The ultimate goal of SGMA is sustainable groundwater management. This is achieved through development of the Groundwater Sustainability Plan (GSP),
which synthesises technical data and information regarding water supply, use, and quality to develop a long term
strategy to achieve sustainablilty. Such plans may require collection of data where gaps exist, the establishment of monitoring systems, and the
construction of water projects. Such plans have a nexus with land use and planning. The cost of developing such a plan is extremely variable and depends
on the availability of recent technical information, the need for the establishment of monitoring networks, and the state of proposed projects.
Therefore, Dudek will develop a detailed scope of work and cost estimate for this phase of SGMA when requested to do so by the District.

Phase IV: Grant Tracking and Application (Optional)


Throughout the years, Dudek has obtained millions of dollars for projects and programs through various federal and state grant programs for their clients.
This optional task is to monitor grant opportunities, assess the potential applicability and benefit for the District, and apply for them when appropriate.
The cost of this item is highly variable and dependent on the number of grants pursued.

Section 4-A
Page 29
APPENDIX B
SGMA Timeline

Section 4-A
Page 30
3/31/2016
Sustainable Groundwater Management Act Timeline 3/1/2016

Montecito Water District


Significant Dates for Medium and High Priority Basins
Due Date
Basin Boundary Modification Applications Deadline 3/31/2016
Basin Boundary Modification Draft Decisions Released
Deadline for GSA Formation
7/1/2016
6/30/2017 DUDEK
Deadline for GSP Submittal (Non-critically Overdrafted Basins) 1/31/2022
Basin Sustainability Achieved (Non-critically Overdrafted Basins) 1/31/2042

Section 4-A
Page 31
MONTECITO WATER DISTRICT
MEMORANDUM

SECTION: 4-B

DATE: OCTOBER 19, 2016

TO: BOARD OF DIRECTORS

FROM: RECYCLED WATER AD HOC COMMITTEE/GENERAL MANAGER

SUBJECT: AUTHORIZATION OF THE PARTICIPATION OF CUSTOMERS IN MWD’S


SERVICE AREA IN GOLETA WATER DISTRICT RECYCLED WATER
HAULING PROGRAM
RECOMMENDATION:
The Recycled Water Ad Hoc Committee and General Manager recommend the adoption of
Resolution No. 2143 authorizing the participation of customers in MWD’s service area in Goleta
Water District’s (GWD) Recycled Water Hauling Program.
DISCUSSION:
Background
In 1990, Goleta Water District and Goleta Sanitary District (GSD) partnered in an agreement for
construction and operation of a recycled water facility. Under this agreement, GSD owns and
operates a tertiary recycled water treatment facility and is responsible for producing tertiary
recycled water compliant with applicable permits and regulations. GWD is responsible for the
distribution and use of that recycled water within permitted areas. GWD holds Master
Reclamation Permit, Regional Water Quality Control Board (RWQCB) Order No. 97-06, dated
February 1997, which permits the use of recycled water for landscaping irrigation, among other
uses.
Since the recycled water facility began operation in 1995, GWD has provided tertiary recycled
water for landscape irrigation purposes through this partnership with GSD. Currently GWD
serves approx. 1,000 acre-feet per year (325 million gallons) of recycled water to over 30
customers in Goleta Valley including UCSB, several golf courses, and parks. See the GWD use
area map below:

Section 4-B
Page 1
Recycled Water Quality (Title 22 compliance)
GSD’s wastewater treatment and recycling facility produces recycled water in accordance with
Regional Water Quality Control Board Central Coast Region Order 91-03. The recycled water
produced by GSD is fully compliant with California Code of Regulations Title 22 recycled water
regulation requirements for disinfected tertiary recycled water as specified in Section
§60301.230(a)(1) and (b).

GSD’s recycled water treatment process includes filtration with coagulation and produces
effluent that does not exceed a turbidity of 2 NTU (Nephelometric turbidity unit). In the event
that water quality limits are exceeded, procedures are in place to halt the production of recycled
water until the problems are resolved. GSD’s recycled water fully complies with California Code
of Regulations Title 22 Section §60304 subsection (a) for use in surface irrigation.

On June 9, 2015, the Central Coast Regional Water Quality Control Board (RWQCB) issued a
letter of approval to expand GWD’s recycled water distribution and uses. The RWQCB’s letter
specifies approval of the requests by GWD and GSD to expand water recycling production,
distribution, and uses including “delivery of recycled water by truck for irrigation, dust control,
and other miscellaneous purposes”.

Section 4-B
Page 2
Although GSD’s recycled water is fully compliant with the California Code of Regulations Title
22 recycled water regulation requirements for disinfected tertiary recycled water, GWD’s
Recycled Water Hauling Program, approved by the RWQCB and SWRCB as part of GWD’s
June 2015 permit amendment as described below, does not permit the use of its recycled water
on “row crops”. According to GWD, their definition of row crops generally conforms with that
defined as “low lying row crops” under California Code of Regulations, Title 8, Section §3437.
The referenced definition is as follows:
“Low-lying row crops. Produce or fruits such as carrots, lettuce, beets,
radishes, celery and strawberries, grown in cultivated fields that are planted
in rows and of such a height that does not impede the visibility of the
agricultural tractor operator and operators of other vehicles in the area.”

GWD Recycled Water Hauling Program


As a result of the ongoing drought conditions and the Governor's policy mandating that recycled
water be used where safe and feasible, GWD developed a Recycled Water Hauling Program.
In 2015, GWD submitted an Engineering Report to the RWQCB requesting an amendment to its
Master Reclamation Permit to include additional authorized uses of recycled water. The purpose
of the Engineering Report was to demonstrate that the proposed uses in GWD's Recycled
Water Hauling Program were compliant with the SWRCB Water Quality Order 2014 –0090
General Waste Discharge Requirements for recycled water use, adopted June 3, 2014 and
Section §603233 of Title 22 of the California Code of Regulations. A copy of the Engineering
Report detailing GWD’s Recycled Water Hauling Program is attached for reference.
Following the SWRCB's approval of the Engineering Report, the RWQCB approved an
amendment to GWD's Master Reclamation Permit, dated June 9, 2015 to expand water
recycling, production, distribution and uses including the delivery of recycled water by truck for,
among other uses, landscape irrigation within the jurisdictions of the La Cumbre Mutual Water
Company (Hope Ranch), City of Santa Barbara, Montecito Water District, Carpinteria Valley
Water District and El Capitan Mutual Water Company.

MWD Participation in GWD Recycled Water Hauling Program


In 2014, as a result of worsening drought conditions, Montecito Water District (MWD) adopted
ordinances declaring a water shortage emergency and implementing customer water use
restrictions and allocations as a necessary measure to reduce customer water consumption and
to conserve our vital and limited resource.
This area recently completed the fifth year of this historic drought and the forecast moving into
the 2016/17 winter remains unchanged. Due to the continuing nature of the drought, the use of
alternate water supplies such as recycled water on landscaping to offset the use of potable
water becomes more important than ever. Using recycled water for irrigation purposes helps to
conserve and extend MWD’s potable water supplies, improving water supply reliability. Through
GWD and GSD recent efforts, the import of tertiary recycled water from Goleta for use within
MWD’s service area is authorized by the regulatory agencies and is available for immediate
use.
MWD’s Recycled Water Ad Hoc Committee and General Manager recognize the benefits
recycled water could have for our long term water supply. Understanding that a determination

Section 4-B
Page 3
regarding the feasibility of developing a recycled water program in Montecito will take time,
giving MWD’s customers the option to receive recycled water from GWD for irrigation purposes
provides for an immediate alternate water supply source that could be utilized to save existing
landscaping including dying trees, particularly when excess potable water may not be available
for this use.

How Participation in GWD Recycled Water Hauling Program Would Work


If authorized by MWD, its customers would have the option of participating in GWD’s Recycled
Water Hauling Program, having tertiary recycled water delivered and applied by GWD to their
property for purposes of irrigating landscaping. GWD's Recycled Water Hauling Program is fully
described in GWD's Engineering Report. In general, GWD’s process is as follows:
1. MWD customer (customer) makes a request of GWD for the delivery of recycled water to
their property.
2. Customer enters into the required agreement with GWD (GWD Special User Agreement
for Delivery and Application of Recycled Water), which is described in the section below.
3. MWD then verifies customer has the proper backflow prevention device installed and
enters into its own agreement with Customer (MWD Recycled Water User Agreement).
4. GWD performs a pre-inspection of the property before recycled water is delivered to
customer's property.
5. GWD delivers Title 22 compliant recycled water from GSD's recycled water facility to
customer's property via one 2,000 gallon recycled water truck, which is owned by GWD
and operated by a GWD-trained contract operator.
6. GWD applies recycled water to customer's landscaping typically via hand application, at
agronomic rates, preventing runoff and ponding on the property.
7. Signage indicating the use of recycled water is posted.

Agreements required to effectuate the delivery of recycled water from GWD


Before recycled water can be delivered and applied by GWD to a property within MWD’s service
area, certain agreements are required by both GWD and MWD. Those agreements are as
follows:
#1 – GWD Recycled Water Trucking Agreement Between GWD and MWD. An interagency
agreement between GWD and MWD authorizing GWD to deliver and apply tertiary recycled
water to customers’ properties within MWD’s service area for purposes of irrigating landscaping.
The agreement outlines the rights and responsibilities of both GWD and MWD.
#2 – GWD Special User Agreement for Delivery and Application of Recycled Water. An
agreement between GWD and the Property Owner or “User” setting forth the terms and
conditions for the sale, delivery and application of recycled water on the User’s property for
purposes of irrigating landscaping.
#3 – MWD Recycled Water User Agreement. An agreement between MWD and the Property
Owner or “User” setting forth certain terms and conditions regarding the use of recycled water
within MWD’s service area, including indemnification and release provisions.

Section 4-B
Page 4
All agreements have been thoroughly reviewed by the MWD’s Recycled Water Ad Hoc
Committee, as well as staff, legal counsel and the Association of California Water Agencies
Joint Powers Insurance Authority (ACWA-JPIA). DRAFT copies of each agreement are
attached for reference. At the request of both MWD legal counsel and ACWA-JPIA,
Indemnification language has been added to both the GWD Recycled Water Trucking
Agreement and the GWD Special User Agreement to help protect the parties from any loss that
may arise as a result of the import and application of recycled water within MWD’s service area.
GWD has also reviewed each of the agreements and has approved of them in their current
form.

Resolution No. 2143


Resolution No. 2143 will authorize participation of customers within MWD’s service area in the
GWD’s Recycled Water Hauling Program. It sets forth the terms required to effectuate this
participation. It also provides the General Manager with authorization to execute the
agreements associated with participation in GWD’s Recycled Water Hauling Program.

MWD Costs
Under MWD’s User Agreement the customer agrees to pay all costs incurred by MWD,
including costs for inspection of backflow devices, arising from the customer’s
participation in GWD’s Recycled Water Hauling Program. The customer shall provide
MWD with a deposit in the amount of $100 as the estimated amount of costs incurred
by MWD. If the costs incurred by MWD are less than the deposit, the portion remaining
shall be refunded. If the costs incurred by MWD are greater than the amount of the
deposit, the customer agrees to pay the additional amounts due upon receipt of MWD’s
invoice for same.

Section 4-B
Page 5
RESOLUTION NO. 2143

RESOLUTION OF THE BOARD OF DIRECTORS OF THE MONTECITO


WATER DISTRICT AUTHORIZING PARTICIPATION OF CUSTOMERS IN
MWD’S SERVICE AREA IN GOLETA WATER DISTRICT
RECYCLED WATER HAULING PROGRAM

WHEREAS, Montecito Water District ("MWD") is a County Water District organized and existing under
the laws of the State of California, including Water Code §§30000 et seq; and

WHEREAS, Water Code §31048 authorizes MWD to cooperate, and act in conjunction and contract
with, municipalities, public and private corporations of any kind, and persons with respect to the
salvage, control, storage, spreading, distribution, treatment, purification and recapture of any waters;
and

WHEREAS, Goleta Sanitary District operates a tertiary treated recycled water plant with the capacity
to produce up to 3.3 million gallons of recycled water a day; and

WHEREAS, Goleta Water District (“GWD”) holds Master Reclamation Permit Order No. 97-06
pursuant to Water Code §§13523 et seq which authorizes uses of reclaimed water, including for
landscape irrigation; and

WHEREAS, in response to prevailing drought conditions, and the Governor’s policy mandates that
agencies utilize recycled water wherever safe and feasible, GWD developed a Recycled Water
Hauling Program; and

WHEREAS, in 2015 GWD requested that the Regional Water Quality Control Board amend its Master
Reclamation Permit Order No. 97-06 and submitted an Engineering Report for use of recycled Water
for landscape irrigation and dust control through a Recycled Water Hauling Program in Goleta, Hope
Ranch, Santa Barbara, Montecito, Carpinteria and El Capitan; and

WHEREAS, the purpose of the Engineering Report submitted by GWD was to demonstrate that the
uses proposed in Recycled Water Hauling Program were compliant with State Water Resources
Control Board Water Quality Order 2014-0090 General Waste Discharge Requirements for Recycled
Water Use adopted June 3, 2014, and Section 60323 of Title 22 of the California Code of Regulations;
and

WHEREAS, on June 5, 2015 the State Water Resources Control Board approved the GWD
Engineering Report; and

WHEREAS, on June 9, 2015 the Central Coast Regional Water Quality Control Board approved the
request of GWD to expand water recycling, production, distribution and uses as requested in the
Engineering Report, including delivery of recycled water by truck for irrigation and dust control; and

WHEREAS, MWD has declared a water shortage emergency in its service area, and has passed
water use restriction and allocation ordinances; and

WHEREAS, MWD wishes to make alternate water supplies available to its customers, including
recycled water; then
1

Section 4-B
Page 6
THEREFORE, BE IT RESOLVED THAT the Board hereby adopts this Resolution No. 2143 to
authorize participation of customers in the MWD service area in the Recycled Water Hauling Program
created by GWD pursuant to the terms in this Resolution as set forth below.

1. MWD and GWD shall enter into the “Recycled Water Hauling Agreement Between Goleta
Water District and Montecito Water District” attached to this Resolution as Exhibit “A”.

2. GWD shall enter into a “Goleta Water District Special User Agreement for Delivery and
Application of Recycled Water” with each MWD customer that wishes to participate in the GWD
Recycled Water Hauling Program. An exemplar of the GWD Special User Agreement is attached
to this Resolution as Exhibit “B”.

3. MWD shall require each customer that wishes to participate in the GWD Recycled Water
Hauling Program to enter into a “Montecito Water District Recycled Water User Agreement”. An
exemplar of the MWD Recycled Water User Agreement is attached to this Resolution as Exhibit
“C”.

4. The MWD General Manager is hereby authorized to sign necessary documents to effectuate
the purposes of this Resolution, including but not limited to the “Recycled Water Hauling
Agreement Between Goleta Water District and Montecito Water District” and “Montecito Water
District Recycled Water User Agreement(s)” between MWD and its customers who elect to
participate in the GWD Recycled Water Hauling Program.

Vote on the resolution by roll call vote resulted as follows:

AYES:
NOES:
ABSTAIN:
ABSENT:

PASED AND ADOPTED this 19th day of October, 2016

APPROVED: ATTEST

_________________________ _________________________
Richard Shaikewitz, President Nick Turner, Secretary

Section 4-B
Page 7
RECYCLED WATER TRUCKING AGREEMENT BETWEEN
GOLETA WATER DISTRICT
AND
_________________________

THIS RECYCLED WATER AGREEMENT (“Agreement”) is made and entered into as of


the ________ day of ____________________, 2016, by and between the Goleta Water
District ("GWD”), a county water district, whose principal address is 4699 Hollister
Avenue, Goleta, CA 93110, and __________________(“Purveyor”)
a_______________, whose principal address is ________________

RECITALS:
A. GWD distributes water that has been completely treated through the Goleta
Sanitary District Water Reclamation System (Recycled Water) pursuant to an
agreement with GSD.
B. In accordance with GWD policies and applicable rules and regulations, the
Recycled water is available for approved uses; and
C. GWD has developed a program through which it will sell, deliver and apply
Recycled water at certain locations for certain designated uses in order to
replace the use of potable water; and
D. The California State Water Resources Control Board Division of Drinking Water
(DDW) has approved GWD’s use of Recycled Water for distribution to customers
of other nearby water purveyors subject to certain conditions (Conditions); and
E. One of the Conditions is that GWD and any nearby water purveyor in whose
territory Recycled Water will be distributed by GWD, enter into an agreement
regarding the application of the Recycled Water; and
F. GWD and Purveyor wish to enter into this Agreement to enable GWD to
distribute Recycled Water to customers within Purveyor’s territory so as to
conserve potable water for more critical uses; and
G. This Agreement complies with the Conditions and the 22 CCR Sec. 60323.

Now therefore GWD and Purveyor agree as follows:

1. Truth of Recitals. The above recitals are true and correct.

2. Term.

A. The term of this Agreement shall begin on the date set forth above and continue
until terminated by either party as set forth below.
B. Either party may terminate this Agreement without cause by providing notice of
termination in writing to the other party at least sixty (60) days prior to the date of
termination.

Goleta Water District/ Purveyor Agreement


Page 1 of 7
Section 4-B
Page 8
3. Rights and Responsibilities of GWD.

A. GWD may deliver Recycled Water within the territory of Purveyor subject to the
following requirements:

1. GWD shall take preventative measures to ensure no cross-connections can


occur. Cross-connections between Recycled Water and potable water are
strictly prohibited.
2. GWD shall not modify the fittings on the recycled water filling station at Goleta
Sanitary District or connections on the Recycled Water truck.
3. GWD shall prohibit the consumption of Recycled Water by any person.
4. GWD shall not spray Recycled Water on any person, drinking fountain, or
surface that is used for eating or food handling.
5. GWD shall inspect the Recycled Water hauling truck daily, both filled and
unfilled, for any leaks. GWD shall also inspect the vehicle monthly in compliance
with the District’s vehicle reporting system.
6. GWD shall apply Recycled Water only at the location of approved customers
that have completed a pre-inspection, and have installed required signage and
backflow prevention devices.
7. GWD shall not deliver Recycled Water to fixed irrigation systems except
systems that have been inspected for compliance with all program requirements
and have been approved for participation in the program.
8. GWD staff shall report any problems immediately to the GWD Recycled Water
Manager at (805) 879-4637.
9. GWD shall allow Recycled Water to be used only for landscape irrigation, soil
compaction, and dust control.
10. GWD shall maintain an updated program log with necessary information for
each customer.
11. GWD shall require that each employee or agent who delivers Recycled Water
sign a GOLETA WATER DISTRICT, Conditions for Recycled Water Applicator
of the Recycled Water Hauling Program.
12. GWD shall perform inspections prior to approval of each Recycled Water
Hauling program application to ensure that the domestic water distribution
systems of the customers who will be receiving recycled water will be protected
from the recycled water of the GWD Recycled Water Hauling Program in
accordance with the regulations relating to cross connections.
13. If the recycled water is being delivered directly into a fixed irrigation system, the
site must be equipped with an air gap in addition to a backflow prevention
device located on the potable water service to the site to protect the backflow of
Recycled Water into the potable distribution system. All air gaps and backflow
prevention devices will be required to be inspected annually. Failure to comply
with inspection requirements will result in termination of authorized delivery of
Recycled Water to the subject site.
14. The Recycled Water shall remain on the authorized use area at all times.
15. Application of Recycled Water shall not occur when it is raining, when the soil is

Goleta Water District/ Purveyor Agreement


Page 2 of 7
Section 4-B
Page 9
saturated, or at an agronomic rate that would allow for the ponding and runoff of
recycled water off the designated use site.
16. GWD shall provide to Purveyor a copy of its quarterly __________ reports that it
files with the California State Water Resources Control Board Division of
Drinking Water..

B. All GWD Recycled Water Hauling trucks shall be operating in compliance with the
following requirements:
1. Drivers shall carry proof of vehicle liability insurance and worker’s
compensation insurance and proof of a valid truck registration.
2. Trucks shall include a display a recycled water notification in English and
Spanish.
3. Water-tight valves and fittings which do not leak must be utilized.
4. The truck must be completely closed and tightly sealed so that water will not
spill out during transport.
5. A copy of the Recycled Water Use Permit must be available for inspection at all
times.
6. A first aid kit adequate to provide for all cuts and abrasions to be promptly
washed, disinfected, and bandaged must be carried.
7. Recycled Water hauling trucks shall not be used to carry water for potable
purposes, regardless of the source of water.
8. All hoses used for the application of recycled water must be clearly marked
and secured during transport.
9. All Recycled water hoses must be inspected daily to verify that they are in
serviceable condition and free from leaks.
10. Hoses and tanks must be kept free from deleterious substances.

4. Purveyor’s Responsibilities.

A. Purveyor shall inspect all backflow devices at least annually for each customer
who receives Recycled Water under the Recycled Water Hauling Program.
B. Purveyor shall immediately notify GWD if it receives any complaint regarding the
Recycled Water Hauling Program.
C. Purveyor must ensure that the following occur before a Recycled Water customer's
separated irrigation system can be reconnected to potable water piping,:
1. The irrigation system must be depressurized and emptied and all quick couplers
must be removed.
2. The Purveyor must submit plans and receive approval from either the California
Department of Drinking Water and/or SBCEH for the disinfection process.
3. The Purveyor must submit plans and receive approval from DDW and/or
SBCEH for the disinfection process.
The irrigation system must be disinfected and such disinfection must be verified
with representative bacteriological monitoring.
4. Written verification of the completion of the above and approval from DDW
and/or SBCEH must be obtained.

Goleta Water District/ Purveyor Agreement


Page 3 of 7
Section 4-B
Page 10
5. Disputes.
In the event of a dispute between the parties, each party shall bear its own
counsel fees and costs regardless of the outcome of any litigation, proceeding
or action. Neither party shall be liable to the other party for any such cost.
6. Venue.
This Agreement shall be construed and governed in accordance with the laws
of the State of California. Venue for any litigation, arbitration or other
proceeding to enforce its terms shall be in Santa Barbara County.
7. Notices.
A. All notices, requests, demands, amendments, modifications or other
communications under this Agreement must be in writing at the
addresses set forth below.
Notice to GWD shall be sent to:
Goleta Water District,
General Manager,
4699 Hollister Avenue, Goleta CA 93110-1999.
Notice to Purveyor shall be sent to:
------------------------------------
[fill in Purveyor info]
8. Default and Cure.
Under this Agreement, a default occurs if either party fails to perform any
term, provision, or condition of this Agreement and such breach is not
cured within 15 days of receipt of written notice of the violation provided
by the other party.
9. Remedies.
If there is a default under this Agreement that is not cured in the time set
forth in Section 8 above, the non-defaulting party may terminate this
Agreement;
10. Modification of Agreement.
This Agreement may be supplemented, amended, or modified only by the
mutual written agreement of the parties.
11. Assignment.
Neither party may assign its rights under this Agreement.
12. Severability of Agreement.
If a court or an arbitrator of competent jurisdiction holds any provision of
this Agreement to be illegal, unenforceable, or invalid in whole or in part for
any reason, the validity and enforceability of the remaining provisions, or

Goleta Water District/ Purveyor Agreement


Page 4 of 7
Section 4-B
Page 11
portions of them, will not be affected unless an essential purpose of this
Agreement would be defeated by the loss of the illegal, unenforceable, or
invalid provision.
13. Waiver.
No waiver of a breach, failure of any condition, or any right or remedy
contained in or granted by the provisions of this Agreement will be effective
unless it is in writing and signed by the party waiving the breach, failure,
right or remedy.

14. Indemnity

To the fullest extent permitted by law, GWD shall defend, indemnify, and
hold MWD (including its directors, officers, employees and authorized
volunteers) harmless from any and all claims, demands, causes of
action, suits, actions, proceedings, costs, expenses, liability, judgments,
awards, decrees, settlements, loss, damage or injury of any kind, in
law or equity (collectively “Claims”) arising from, and/or related to, acts
and/or omissions of GWD in the performance of work, services, and/or
responsibilities of GWD under this Agreement. This includes without
limitation the payment of all actual damages, consequential damages,
expert witness fees and attorney’s fees and other related costs and
expenses, including but not limited to legal costs and expenses incurred
by MWD in connection with any Claims or in enforcing this indemnity
provision. This indemnity does not include Claims that arise out of the
sole active negligence, or willful misconduct of MWD.

To the fullest extent permitted by law, MWD shall defend, indemnify, and
hold GWD (including its directors, officers, employees and authorized
volunteers) harmless from any and all claims, demands, causes of
action, suits, actions, proceedings, costs, expenses, liability, judgments,
awards, decrees, settlements, loss, damage or injury of any kind, in
law or equity (collectively “Claims”) arising from, and/or related to, acts
and/or omissions of MWD in the performance of work, services, and/or
responsibilities of MWD under this Agreement. This includes without
limitation the payment of all actual damages, consequential damages,
expert witness fees and attorney’s fees and other related costs and
expenses, including but not limited to legal costs and expenses incurred
by GWD in connection with any Claims or in enforcing this indemnity
provision. This indemnity does not include Claims that arise out of the
sole active negligence, or willful misconduct of GWD.

The indemnity requirements set forth in this section are not limited to the
amount of any insurance available to either party and survive the
termination of this Agreement for any reason.

Goleta Water District/ Purveyor Agreement


Page 5 of 7
Section 4-B
Page 12
15. Insurance

MWD (including its directors, officers, employees and authorized


volunteers) shall be given additional covered party status under the
applicable GWD “Memorandum of Liability Coverage for the Association of
California Water Agencies Joint Powers Insurance Authority” relative to
this Agreement, and the work services and/or responsibilities to be
performed by MWD and GWD. Evidence of additional covered party
status will be provided to MWD by GWD on such endorsements as are
issued by ACWA/JPIA. Any endorsement will include language that it
provides additional covered party status pursuant to contract. It is
understood and agreed to by MWD and GWD that insurance provided
pursuant to this provision shall be construed as primary and that MWD
insurance and/or deductibles and/or self- insured retentions shall not be
construed as contributory. MWD will pay such costs as are required to
obtain additional covered party status, after notice by GWD to MWD of
such costs, and approval of those costs by MWD, which approval shall not
be unreasonably withheld.

GOLETA WATER DISTRICT (GWD)

By:

Date:

Approved as to Form:

By:
Mary L. McMaster, General Counsel

Goleta Water District/ Purveyor Agreement


Page 6 of 7
Section 4-B
Page 13
____________________________(Purveyor)

By:

Date:

Approved as to Form:

By:

Goleta Water District/ Purveyor Agreement


Page 7 of 7
Section 4-B
Page 14
GOLETA WATER DISTRICT
SPECIAL USER AGREEMENT
FOR DELIVERY AND APPLICATION OF RECYCLED WATER

THIS SPECIAL USER AGREEMENT FOR DELIVERY AND APPLICATION OF


RECYCLED WATER (“User Agreement”) is made and entered into this ________ day
of ____________________, 201_, by and between the Goleta Water District ("GWD”), a
county water district, whose principal address is 4699 Hollister Avenue, Goleta, CA
93110, and _______, whose principal address is: _______________________ ("User").

RECITALS:

A. Through an agreement with Goleta Sanitary District (“GSD”), GWD delivers


recycled water from the water reclamation facilities (“Water Reclamation
System”) operated by GSD; and
B. Water that has been completely treated through the Water Reclamation System
shall hereinafter be referred to as “recycled water”; and
C. In accordance with GWD policies and appropriate governmental approvals,
recycled water is available for approved uses through its Recycled Water Hauling
Program (“Program”); and
D. User desires to purchase, and accept delivery and application of recycled water
by GWD as set forth under the terms and conditions in this User Agreement and
the Program; and
E. Such sales and deliveries are in accordance with the GWD’s policy of using
recycled water for beneficial purposes; and
F. User has submitted an application for recycled water use to GWD, the required
Program pre-inspection has been successfully completed, and GWD has
approved the application.

1. Purpose.

This User Agreement is intended to deliver and apply recycled water to User for the
following use:

A. [ ] landscape irrigation
B. [ ] construction or dust control
C. [ ] other:_________________________________________________

2. Term.

2.1 The term of this User Agreement shall begin on the date set forth above
and terminate 12 months thereafter.
2.2 Either Party may terminate this User Agreement without cause by
providing notice of termination in writing to the other party at least ten (10)
days prior to the date of termination.

Special User Agreement for Recycled Water


Page 1 of 6
Section 4-B
Page 15
2.3 Failure by User to adhere to all regulations governing the use of recycled
water as required by law, the Program, the attached State Water
Resources Control Board June 5, 2015 approval letter (“SWRCB 6/5/15
Letter”), attached hereto as Exhibit A and fully incorporated by this User
Agreement by this reference, as set forth in this User Agreement will result
in the immediate termination of recycled water service until such time as
the deficiencies are corrected to the satisfaction of GWD.
2.4 In addition, User understands and agrees that scheduled delivery of
recycled water may be terminated on a temporary or permanent basis by
GWD if determined necessary because of operational constraints. User
releases GWD from liability should this occur and GWD agrees to notify
User as soon as practicable.

3. Location of Delivery Site.

3.1 The recycled water provided by GWD to User pursuant to this User
Agreement shall be delivered to User by GWD’s Recycled Water
Applicator or its approved contractor (“RWA”) at
_____________________________ (“User’s Site”).
3.2 The recycled water provided by GWD to User pursuant to this User
Agreement shall be used solely at User’s Site.

4. Schedule of Delivery and Application of Recycled Water.

4.1 User shall take delivery of recycled water between the hours of ___ and
__ on [day of week] and shall only be used for the purpose set forth in
Section 1 above.
4.2 User may request changes to the schedule which changes must be
approved by GWD.
4.3 User agrees that GWD cannot and does not guarantee that it will be able
to accommodate the timing of any requested schedule changes. GWD
will strive to but cannot guarantee that they will be able to provide User
advanced notice of recycled water unavailability.
4.4 User agrees and understands that the RWA shall not apply recycled water
to User’s Site in a rate that exceeds the agronomic rate, if User’s Site is
saturated, when it is raining, or when the recycled water does not meet
tertiary standards.

5. Deposit and Rates.

5.1 Prior to application of recycled water to User’s Site, User shall first provide
GWD with a deposit as follows:
a. Commercial, institutional, and residential customers: two times
the requested delivery schedule costs within a one month period;
b. Construction: $1,256.00.

Special User Agreement for Recycled Water


Page 2 of 6
Section 4-B
Page 16
5.3 Upon termination of service, the deposit shall be used to pay any remaining
bill and then the rest refunded to the customer.
5.2 The total charge to User will be determined by: (i) the delivery charge
based on the customer’s zone; (ii) the commodity charge based upon the
customer’s requested recycled water delivery; and (iii) the hourly staff time
charge for the RWA to apply recycled water at User’s Site or for related
RWA work, including but not limited to verification of potable water system
protection, cross-connection control tests and backflow verification.
5.3 The RWA shall track the amount of recycled water used at User’s Site on
the meter on the recycled water hauling truck and shall also track the
RWA time spent on User’s Site.

6. GWD’s Responsibilities.

6.1 GWD will deliver and apply recycled water to User’s Site as set forth in
this User Agreement.
6.2 GWD shall be responsible for providing and applying recycled water in
compliance with the applicable requirements of GWD, federal, state, local
regulatory agencies, and the Program.
6.3 GWD shall monitor recycled water deliveries and use sites as it deems
necessary and in accordance with applicable federal, state, and local
regulatory agency requirements.

7. User’s Responsibilities.

7.1 User agrees to comply with all applicable federal, state and local laws,
rules, and regulations related to the use recycled water, the SWRCB
6/5/15 Letter, GWD Code Title 7, “Reclaimed Water System Rules and
Regulations,” Chapter 5.20, “Reclaimed Water Service,” and other GWD
regulations related to the use of recycled water, including the Program.
7.2 User shall timely pay GWD for recycled water service.
7.3 If applicable, User shall post and maintain GWD provided warning signs
informing the public and all on-site personnel (employees, tenants, or
occupants) that recycled water is being used. Upon termination of this
User Agreement, User shall return the warning signs to GWD.
7.4 User shall altogether avoid introducing recycled water into any
potable/domestic water piping system and no connection shall be made
between equipment containing, or having contained, recycled water and/or
any part of a domestic water system until such time as equipment has
been properly disinfected.
7.5 User shall follow all directions of the RWA while deliveries are made at
User’s Site as it relates to the use, application, safety measures, and
subsequent disposal of recycled water at User’s Site.
7.6 User agrees that the recycled water used pursuant to this User Agreement
shall be used only for approved purposes on User’s Site as set forth
herein.

Special User Agreement for Recycled Water


Page 3 of 6
Section 4-B
Page 17
7.7 User agrees that it shall not resell any of the recycled water received by
User pursuant to this User Agreement to any other person.
7.8 When recycled water is used in User’s irrigation system, User is solely
responsible to comply with all applicable health and safety requirements
before potable water is used in such system.

8. User Acknowledgment.

User acknowledges and understands that the purpose of GWD’s recycled water system
is to control the biological quality of the recycled water resulting from its operation; and
said system is not equipped to detect, treat, or remove harmful chemicals or toxic
materials except as required to meet federal, state, and local regulatory agency
discharge standards. Further, User understands and agrees that nothing contained in
this User Agreement shall prevent GWD from amending or modifying its regulations at
any time and such regulations as amended shall apply to this User Agreement. Neither
GWD make any representation as to the fitness or suitability of the recycled water for
User’s intended use and User accepts all risks associated with the use of the recycled
water.

9. Indemnification

9.1 User shall indemnify, defend, and hold District, its directors, officers,
agents, servants, and employees free and harmless from any and all liability, demands,
claims, cost, losses, damages, settlements and expenses including court costs, interest
and reasonable counsel fees arising from act(s) of User, its agents or employees which
causes injury to the person or property of a third party or person other than the District
for which the District is made a party to litigation by such third party. All obligations
arising prior to the termination of this Agreement and all provisions of this Agreement
allocating responsibility or liability between the District and User shall survive the
termination of this Agreement.

9.2 In the event that any action, suit or proceeding shall be instituted against
the District or User by a third party on a liability indemnified against, the served Party
shall give notice to the other Party within 10 days of receipt of service of such action,
suit or proceeding.

9.3 If User is located in the service area of Montecito Water District, then the
indemnity, defense, and hold harmless requirements of sections 9.1 and 9.2 of this User
Agreement also apply in equal force and effect to Montecito Water District and its
directors, officers, agents, servant and employees.

10. General Provisions


10.1 DISPUTES. In the event of a dispute between the Parties, counsel
fees and costs shall be borne by each Party regardless of the outcome of any
litigation, proceeding or action. Neither Party shall be liable to the other Party for
any cost incurred.

Special User Agreement for Recycled Water


Page 4 of 6
Section 4-B
Page 18
10.2 VENUE. This Agreement shall be construed and governed in
accordance with the laws of the State of California. Venue for any litigation,
arbitration or other proceeding to enforce its terms shall be in Santa Barbara
County.
10.3 NOTICES. All notices, requests, demands, amendments,
modifications or other communications under this Agreement must be in writing.
Notices shall be sent by one Party to the other at the addresses set forth in the
Agreement except that unless another address is set forth, notice to the District
shall be sent to Goleta Water District, General Manager, 4699 Hollister Avenue,
Goleta CA 93110-1999. Notice is sufficient for all such purposes if personally
delivered, sent by first class, registered or certified mail, return receipt requested,
delivery by courier with receipt of delivery, facsimile transmission with written
confirmation of receipt by recipient, or email delivery with verifiable and
unmodifiable proof of content, time and date of sending by sender, and delivery
to recipient. If email is used, a copy of the notice shall be mailed by first class
mail not later than the next business day to the email recipient. Time shall run
from the date of receipt or the date of email transmission if the copy of the notice
is timely mailed. If a copy of the notice is not timely mailed, then the date of
mailing of the copy of the notice sent by email shall govern.
10.4 ENTIRE AGREEMENT. This Agreement and any attachment
constitute the final, complete, and exclusive statement of the terms of this
Agreement between the Parties pertaining to recycled water service and
supersede all prior and contemporaneous understandings or agreements of the
Parties. No Party has been induced to enter into this Agreement by, nor is any
Party relying on, any representation or warranty outside those expressly set forth
in this Agreement. This Agreement supersedes all prior or contemporaneous
communications, representations, or agreements unless specifically excepted,
whether oral or written, relating to the subject matter of this Agreement.
Execution of this Agreement signifies that each Party has read the document
thoroughly, has had any questions explained by independent counsel and is
satisfied.
10.5 MODIFICATION OF AGREEMENT. This Agreement may be
supplemented, amended, or modified only by the mutual agreement of the
Parties. No supplement, amendment, or modification of this Agreement will be
binding unless it is in writing and signed by both Parties.
10.6 ASSIGNMENT. User shall not transfer or assign any rights or
interest in this Agreement, including but not limited to monies that are due or
monies that may be due, without the prior written consent of the District.

Special User Agreement for Recycled Water


Page 5 of 6
Section 4-B
Page 19
The Parties have set forth their signatures as of the date set forth above.

GOLETA WATER DISTRICT

By:

Date:

Approved as to Form:

By:
Mary L. McMaster, General Counsel

USER:

By:

Date:

And

By:

Date:

Special User Agreement for Recycled Water


Page 6 of 6
Section 4-B
Page 20
MONTECITO WATER DISTRICT
RECYCLED WATER USER AGREEMENT

This Montecito Water District Recycled Water User Agreement (“MWD User
Agreement”) is made and entered into this ________ day of ____________________,
201_, by and between the Montecito Water District, a county water district, and
_________________________, (“User”) relative to the real property located at
_________________________________, [APN#____________________] (“Property”).

RECITALS:

A. Whereas, Montecito Water District (“MWD”) and Goleta Water District (“GWD”)
have entered into a “Recycled Water Trucking Agreement” whereby GWD has
agreed to deliver and distribute water treated through the Goleta Sanitary District
Water Reclamation System (“Recycled Water”) via its Recycled Water Hauling
Program (“Program”) to properties in the MWD service area, and MWD has
agreed to allow its customers to participate in the Program; and

B. Whereas, User has entered into a “Special User Agreement for Delivery and
Application of Recycled Water” with GWD dated _______________ for the
delivery, application and use of Recycled Water at User’s Property attached
hereto as Exhibit “A”; and

C. Whereas, as a condition of participation in the Program by User, MWD requires


the execution of this MWD User Agreement.

Therefore, MWD and User agree as follows:

1. User Responsibilities

1.1 User agrees to comply with all terms of the “Special User Agreement for
Delivery and Application of Recycled Water” between User and GWD, including but not
limited to terms concerning “User’s Responsibilities” and further agrees that any failure
to comply with those terms represents a breach of this MWD User Agreement and
grounds for MWD to terminate User’s participation in the Program.

2. User Acknowledgment and Release

2.1 User acknowledges and understands that the Program is conducted by


GWD and that MWD involvement includes only those “Purveyor’s Responsibilities” in
Section 4 of the “Recycled Water Trucking Agreement”, which include inspection of
backflow devices for Users who receive Recycled Water under the Program.

2.2 User acknowledges and understands that the purpose of recycled water
systems, including the Water Reclamation System from which GWD obtains Recycled
Water to deliver and apply for use at User’s Property, is to control the biological quality
of the Recycled Water resulting from its operation; and said system is not equipped to
detect, treat, or remove harmful chemicals, toxic materials, or particulates except as
Recycled Water User Agreement
Page 1 of 5
Section 4-B
Page 21
required to meet federal, state, and local regulatory agency discharge standards. MWD
does not make any representation as to the fitness or suitability of the Recycled Water
for User’s intended use and User accepts all risks associated with participation in the
Program

2.3 User further agrees to fully release and forever discharge MWD and its
agents, directors, employees, managers, and officers from any and all past, present or
future actions, causes of action, claims, costs, demands, damages, expenses, fees, and
liabilities of every kind and nature whatsoever in any way arising out of User’s
participation in the Program. User hereby, consciously, expressly, knowingly and
voluntarily, abandons, relinquishes and waives each and every benefit, protection
and right that User would be entitled to now, or at any time after the execution of
this agreement, under California Civil Code Section 1542 as to any and all past,
present or future actions, causes of action, claims, class actions, costs,
demands, damages, expenses, fees, and liabilities of every kind and nature
whatsoever as against MWD in any way arising out of participation in the
Program.

2.4 By entering into this MWD User Agreement, User agrees to waive the right
to initiate or participate in a class action, representative action, private attorney general
litigation, or consolidated action related to this MWD User Agreement or arising out of
participation in the Program.

3. Costs and Deposit

3.1 User agrees to pay all costs incurred by MWD, including costs for
inspection of backflow devices, arising from User’s participation in the Program User
shall provide MWD with a deposit in the amount of $100 as the estimated amount of
costs incurred by MWD. If the costs incurred by MWD are less than the deposit, the
portion remaining shall be refunded to User. If the costs incurred by MWD are greater
than the amount of the deposit, User agrees to pay the additional amounts due upon
receipt of MWD’s invoice for same.

4. Indemnification

4.1 All activities arising out of or relating to participation in the Program shall
be at the risk of User and User voluntarily assumes such risk. To the fullest extent
permitted by law, User shall defend (with counsel chosen by MWD), indemnify and hold
harmless MWD and its agents, directors, employees, managers and officers against any
and all claims, costs, suits, actions, legal or administrative proceedings, judgments,
debts, demands, incidental and consequential damages (including injury or death to
any person or persons and damage to any property including loss of use resulting
therefrom), liabilities, interest, costs, attorneys’ fees and expenses of whatsoever kind
or nature, which are in any manner directly, indirectly, in whole or in part arising out of
or relating to User’s participation in the Program. All defense and indemnity
obligations set forth herein shall survive the termination of this MWD User Agreement.

Recycled Water User Agreement


Page 2 of 5
Section 4-B
Page 22
4.2 The defense, indemnity and hold harmless requirements of this MWD
User Agreement include, but are not limited to, defense and indemnity for any property
loss or damage or death or personal injury suffered or alleged to be suffered by any
person or entity from exposure to, or as a result of using or consuming, the Recycled
Water, based on any theory of recovery, including but not limited to theories of product
liability, toxic tort, or environmental impairment. The loss and expense relating to such
liabilities to third parties to which the indemnity provided in this provision extends shall
include, without limitation, any and all special, incidental, consequential, exemplary, and
other similar damages awarded to such third parties.

5. General Provisions

5.1 GOVERNING LAW AND VENUE. This MWD User Agreement shall be
construed and governed in accordance with the laws of the State of California. Venue
for any arbitration, litigation, or other proceeding arising out of or relating to this MWD
User Agreement, or breach thereof, shall be in Santa Barbara County.

5.2 ARBITRATION. Any controversy or claim arising out of or relating to this


MWD User Agreement, or breach thereof, shall be settled by arbitration administered by
the American Arbitration Association in accordance with its Commercial Arbitration
Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any
court having jurisdiction thereof and venue as required by provision 5.1. User shall be
required to comply with all claim requirements of the Government Code prior to initiating
any arbitration pursuant to this provision.
5.3 ATTORNEY’S FEES AND COSTS. In the event of a dispute between the
Parties arising out of or relating to this MWD User Agreement, or breach thereof,
reasonable attorney’s fees and costs shall be awarded to the prevailing party.
Notwithstanding the foregoing regarding attorney’s fees, if either party fails or refuses to
participate in a requested mediation, the party failing or refusing to participate shall not
be entitled to any award of attorney’s fees.
5.4 NOTICES. All notices, requests, demands, amendments, modifications or
other communications under this MWD User Agreement must be in writing.

Notices for MWD shall be sent to:

Montecito Water District


Attn: General Manager
583 San Ysidro Road, Santa Barbara, CA 93108

Notices for User shall be sent to:

___________________
___________________

Notice is sufficient for all such purposes if personally delivered, sent by first class,
registered or certified mail, return receipt requested, delivery by courier with receipt of
Recycled Water User Agreement
Page 3 of 5
Section 4-B
Page 23
delivery, facsimile transmission with written confirmation of receipt by recipient, or email
delivery with verifiable and unmodifiable proof of content, time and date of sending by
sender, and delivery to recipient. If email is used, a copy of the notice shall be mailed
by first class mail not later than the next business day to the email recipient. Time shall
run from the date of receipt or the date of email transmission if the copy of the notice is
timely mailed. If a copy of the notice is not timely mailed, then the date of mailing of the
copy of the notice sent by email shall govern.

5.5 ENTIRE AGREEMENT. This MWD User Agreement constitutes the final,
complete, and exclusive statement of the terms of this MWD User Agreement between
MWD and User pertaining to participation in the Program and supersedes all prior and
contemporaneous understandings or agreements between the Parties hereto. No Party
has been induced to enter into this agreement by, nor is any Party relying on, any
representation or warranty outside those expressly set forth in this MWD User
Agreement. Execution of this MWD User Agreement signifies that each Party has read
the document thoroughly, has had any questions explained by independent counsel and
is satisfied.

5.6 MODIFICATION OF AGREEMENT. This MWD User Agreement may be


supplemented, amended, or modified only by the mutual agreement of the Parties. No
supplement, amendment, or modification of this MWD User Agreement will be binding
unless it is in writing and signed by both Parties.

5.7 ASSIGNMENT. User shall not transfer or assign any rights or interest in this
MWD User Agreement, without the prior written consent of the District. User shall notify
MWD of any change in ownership of the Property and the new owner will be required to
execute an MWD User Agreement to participate in the Program.

5.8 AUTHORITY. The Parties represent and acknowledge that they have full
authority to enter into this MWD User Agreement. User specifically acknowledges that
they are the owner of the Property, or have received the written authorization of the
owner to participate in the Program. User agrees to provide such written authorization,
which must predate the date of this MWD User Agreement, upon request by MWD.

5.9 TERM/TERMINATION The term of this User Agreement shall begin on the
date set forth above and terminate 12 months thereafter. Either party may terminate
this MWD User Agreement without cause by providing notice of termination in writing to
the other party at least ten (10) days prior to the date of termination.
The Parties have set forth their signatures as of the date set forth above.

MONTECITO WATER DISTRICT

By: Date:_______________
Nicholas Turner, General Manager

Approved as to Form:

Recycled Water User Agreement


Page 4 of 5
Section 4-B
Page 24
By: Date:_______________
Robert M. Cohen, General Counsel

USER:

By: Date:________________

Recycled Water User Agreement


Page 5 of 5
Section 4-B
Page 25
Section 4-B
Page 26
Section 4-B
Page 27
Section 4-B
Page 28
Section 4-B
Page 29
Section 4-B
Page 30
Section 4-B
Page 31
Table of Contents 

1.0 INTRODUCTION 
2.0 RECYCLED WATER PROJECT 
2.1 General  
2.2 Rules and Regulations 
2.3 Producer – Distributor – User 
2.4 Raw Wastewater  
2.5 Treatment Processes 
2.6 Plant Reliability Features 
2.7 Supplemental Water Supply 
2.8 Monitoring and Reporting  
2.9 Contingency Plan  
3.0 TRANSMISSION AND DISTRIBUTION SYSTEMS 
4.0 USE AREAS  
4.1 Irrigation  
4.2 Impoundments  
4.3 Cooling 
4.4 Groundwater Recharge 
4.5 Dual Plumbed Use Areas 
4.6 Other Industrial Uses 
4.7 Use Area Design  
4.8 Use Area Inspection and Monitoring  
4.9 Employee Training  


 
Section 4-B
Page 32
Exhibits 

A. Proposed Service Area for Recycled Water Hauling – Goleta Water District  
B. Contact information for Involved Entities  
C. Proposed Service Area for Recycled Water Hauling – La Cumbre Mutual Water Company  
D. Proposed Service Area for Recycled Water Hauling – City of Santa Barbara  
E. Proposed Service Area for Recycled Water Hauling – Montecito Water District  
F. Proposed Service Area for Recycled Water Hauling – Carpinteria Valley Water District 
G. Proposed Service Area for Recycled Water Hauling – El Capitan Mutual Water Company  
H. Contact Information for Regulatory Agencies 
I. Sample Signage  
J. Conditions for the Introduction and Use of Recycled Water 
K. Recycled Water Use Site Supervisor Training 
L. Goleta Water District Rules and Regulations and Standard Specifications for Recycled Water  
M. Schematic Train of Treatment Facilities  
N. 2012 Goleta Sanitary District Annual Pretreatment Report 
O. Goleta Water District and Goleta Sanitary District Engineering Report for Water Reclamation 
(Hard copy only, available upon request) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
Section 4-B
Page 33
1 INTRODUCTION  
 
This Engineering Report was prepared in support of a proposal to use recycled water produced by the 
Goleta  Sanitary  District  for  landscape  irrigation  and  dust  control  purposes  in  the  jurisdictions  of  the 
Goleta  Water  District,  La  Cumbre  Mutual  Water  Company  (Hope  Ranch),  City  of  Santa  Barbara, 
Montecito Water District, Carpinteria Valley Water District, and the El Capitan Mutual Water Company, 
and  toilet  and  urinal  flushing  and  cooling  towers  within  the  jurisdiction  of  the  Goleta  Water  District  
Water  used  for  landscape  irrigation  and  dust  control  will  be  hauled  to  various  locations  with  a 
dedicated, clearly marked water truck and applied by a trained Recycled Water Applicator.  Water to be 
used in dual‐plumbed buildings and for cooling towers will be delivered by “purple pipe” in accordance 
with applicable requirements. 
 
This report was prepared pursuant to Section 60323 of Title 22 of the California Code of Regulations and 
the Division of Drinking Water (DDW) “Guidelines for the Preparation of an Engineering Report for the 
Production, Distribution, and Use of Recycled Water” dated March 2001.  
 
The purpose of this Engineering Report is to demonstrate that the proposed recycled water hauling and 
dual plumbed/cooling tower use is compliant with the State Water Resource Control Board’s Water 
Quality Order 2014‐0090 General Waste Discharge Requirements for Recycled Water Use adopted June 
3, 2014, as well as Title 22 requirements. This report explains the degree and reliability of treatment is 
consistent with the requirements of the proposed recycled water use, and that the distribution and 
proposed recycled water use will not create a health hazard or nuisance.   It is intended that the 
proposed distribution and use of recycled water complies with Title 22 requirements as may be in effect 
now and in the future.  In case of conflict between requirements of this Report and Title 22, the more 
stringent shall apply. 
 
2 RECYCLED WATER PROJECT 
 
2.1 General  
 
The Goleta Sanitary District provides wastewater treatment services to approximately 80,000 people in 
an  85  square‐mile  area.  Goleta  Sanitary  District  is  located  in  an  unincorporated  coastal  area  of  Santa 
Barbara  County  at  1  William  Moffett  Place,  Goleta,  CA  93117.  Goleta  Sanitary  District’s  service  area 
consists of the unincorporated area of the Goleta Valley immediately west of and adjacent to the City of 
Santa Barbara, and a portion of the City of Goleta around and easterly of the Santa Barbara Municipal 
Airport.  In addition, Goleta Sanitary District serves, under a separate contract, the Goleta West Sanitary 
District, which serves the remaining western portion of the City of Goleta, and the unincorporated area 
of  Isla  Vista.  Goleta  Sanitary  District  also  serves  the  University  of  California,  Santa  Barbara;  the  Santa 
Barbara Municipal Airport, which belongs to the City of Santa Barbara; and certain Santa Barbara County 
facilities.  
 


 
Section 4-B
Page 34
Goleta  Sanitary  District  operates,  in  partnership  with  GWD,  a  tertiary  treated  recycled  water  plant.  
Currently,  the  Goleta  Sanitary  District  plant  has  the  capacity  to  produce  up  to  3.3  million  gallons  of 
recycled water a day, which under the GWD’s Master Permit 97‐06, can be used for landscape irrigation 
and construction dust control.  Although the Goleta Sanitary District plant has the capability to produce 
3,000  acre  feet  per  year  (AFY),  delivery  is  currently  limited  to  only  1,000  AFY  due  to  limitations  in 
storage and distribution infrastructure.    
 
GWD has 24 customers permanently connected to the existing recycled water distribution system. GWD 
Administration and Operations Office (Headquarters) is located at 4699 Hollister Avenue. GWD provides 
the treatment and distribution of potable water to 87,000 customers and tertiary recycled water to 24 
customers.  GWD  currently  owns  and  will  operate  a  recycled  water  filling  station  at  Goleta  Sanitary 
District’s recycled water plant. Treatment of recycled water to tertiary standards is the responsibility of 
Goleta Sanitary District, whereas the distribution and use of recycled water is the responsibility of GWD. 
The proposed areas to receive recycled water within GWD service area are shown in Exhibit A.  
 
In  response  to  the  drought  and  increasing  customer  interest,  GWD  has  been  working  with  Goleta 
Sanitary  District  staff  to  develop  a  Recycled  Water  Hauling  Program  to  offset  potable  water  demand 
from  GWD  customers  and  interested  parties  outside  of  the  GWD  service  area  throughout  the  South 
Central Coast where recycled water is otherwise not available. Areas outside the GWD service area that 
may be served are within the boundaries of the La Cumbre Mutual Water Company, the City of Santa 
Barbara, Montecito Water District, Carpinteria Valley Water District, El Capitan Mutual Water Company, 
and  portions  of  unincorporated  Santa  Barbara  County.  These  entities  will  be  required  to  sign  a  legal 
agreement  to  allow  the  delivery  of  recycled  water  to  customers  within  their  jurisdiction  prior  to  such 
deliveries.  The  legal  agreements  will  outline  the  responsibilities  between  agencies  with  respect  to  the 
use  of  recycled  water  and  cross  connection  control  measures.  Contact  information  for  each  of  these 
entities is located in Exhibit B.  
 
The La Cumbre Mutual Water Company treats and serves potable water to 1,400 customers, mostly in 
the Hope Ranch area. La Cumbre Mutual Water Company’s jurisdiction is east of the GWD service area, 
south of Hollister Avenue  between More Mesa to the west and  the City of Santa Barbara to the east. 
Potential  customers  to  receive  hauled  recycled  water  in  their  jurisdiction  include  La  Cumbre  Country 
Club, and Hidden Oaks Golf Course (Exhibit C). La  Cumbre Mutual Water Company currently  does not 
treat or deliver recycled water to its customers.  
 
The  City  of  Santa  Barbara’s  Public  Works  Department  treats  and  distributes  12.5  million  gallons  of 
potable  water  per  day  to  26,000  service  connections.  The  City  of  Santa  Barbara’s  jurisdiction  extends 
along  the  foothills  of  the  Santa  Ynez  Mountains  to  the  north,  to  the  unincorporated  portions  of  the 
Goleta Valley and the  La  Cumbre Mutual Water Company to  the west, and to Montecito  on the  east 
(Exhibit  D).  Potential  customers  to  receive  hauled  recycled  water  in  City  of  Santa  Barbara  jurisdiction 
include the City of Santa Barbara’s maintained street trees and medians, Santa Barbara Golf Club, and 
various public parks. The City of Santa Barbara currently manages a Backflow Assembly Program which 
requires backflow prevention assemblies and annual testing. It will remain the responsibility of the City 


 
Section 4-B
Page 35
of Santa Barbara to maintain and inspect backflow prevention assemblies within their jurisdiction. The 
City of Santa Barbara does not currently provide recycled water to its customers due to needed repairs 
to  their  recycled  water  treatment  system.      Until  such  repairs  are  completed,  the  City  is  delivering 
potable water to its recycled water customers, primarily for irrigation purposes.  Use of recycled water 
through the GWD Recycled Water Hauling Program will directly offset the use of potable water at these 
facilities. 
 
The  Montecito  Water  District  is  located  in  the  southern,  coastal  portion  of  Santa  Barbara  County  and 
includes the unincorporated communities of Montecito and Summerland (Exhibit E). It has a population 
of  approximately  13,100  people  and  currently  provides  potable  water  to  approximately  4,500 
customers. The Montecito Water District does not currently provide recycled water. Potential customers 
within  Montecito  include  many  residential  estate  customers,  the  Birnam  Wood  Country  Club,  and 
Westmont College.   
 
The Carpinteria Valley Water District is located in the southern coastal portion of Santa Barbara County 
and  includes  the  City  of  Carpinteria  (Exhibit  F).  The  Carpinteria  Valley  Water  District,  which  spans 
approximately 11,300 acres, is bounded on the south by the Pacific Ocean, the north by the foothills of 
the  Santa  Ynez  Mountains,  and  west  by  Montecito.  Carpinteria  Valley  Water  District  uses  75  miles  of 
pipeline  to  provide  potable  water  to  approximately  18,500  people.  Carpinteria  Valley  Water  District 
does not currently provide recycled water to its customers.  
 
El Capitan Mutual Water Company is located on the coast toward the west end of Goleta (Exhibit G). El 
Capitan  Mutual  Water  Company  relies  on  groundwater  for  its  water  supply  and  does  not  provide 
recycled water to its customers.   
 
The GWD Recycled Water Hauling Program and intended use of recycled water is not a new concept in 
California, and is consistent with all applicable regulating requirements. A program of hauling recycled 
water currently:  
 
 Complies with the Goleta Sanitary District’s California Regional Water Quality Control 
Board (Central Coast Region) Order No. R3‐2010‐0012 Waste Discharge Requirements 
and National Pollutant Discharge Elimination System adopted May 13, 2010. 
 Is allowed in Uses of Recycled Water, Article 3 of Title 22 of the California Code of 
Regulations 

Also, in response to the drought and increasing customer interest, GWD is seeking approval for recycled 
water use for dual plumbed systems and cooling towers. Interested customers include the University of 
California Santa Barbara (UCSB) Main Campus and UCSB’s other housing developments.  

Contact information for DDW, Regional Water Quality Control Board for the Central Coast, GWD, and 
Goleta Sanitary District is available in Exhibit H.  


 
Section 4-B
Page 36
2.2 Rules and Regulations 

Recycled Water Hauling Program 

The  recycled  water  hauling  trucks  used  in  the  GWD’s  Recycled  Water  Hauling  Program  will  follow  the 
requirements below: 

 Carry proof of vehicle liability insurance and worker’s compensation insurance. 
 Carry proof of valid truck registration.  
 Display a recycled water notification in English and Spanish (Exhibit I).  
 Utilize water‐tight valves and fittings and must not leak. The hauling truck must be 
completely closed and tightly sealed so that water will not spill out during transport. 
 Recycled Water Use Permit must be available for inspection at all times. 
 Carry an adequate first aid kit to allow all cuts and abrasions to be promptly washed, 
disinfected, and bandaged. 
 Will not be used to carry water for potable purposes, regardless of the source of water.  
 Hoses used for the application of recycled water will be clearly marked. The hoses will be 
secured during transport. 
 Hoses will be inspected daily to verify that they are in serviceable condition and free 
from leaks.  
 Hoses and tanks will be free from deleterious substances. 

At  the  recycled  water  filling  station  at  Goleta  Sanitary  District,  the  recycled  water  pipe  and 
appurtenances will be identified as such, including purple pipe and shutoff tags with recycled water tags. 
Signage  will  also  be  posted  at  the  filling  station  noting  “FOR  USE  BY  AUTHORIZED  PERSONNEL  ONLY.”  
The recycled water filling station is located within the restricted boundary of the Goleta Sanitary District 
and will not have public access. The filling station will be locked at all times to prevent unauthorized use 
and the key will be held by GWD only.  

GWD  will  utilize  a  Recycled  Water  Applicator  (RWA)  with  a  Class  A  or  B  Driver’s  License,  with  a  tank 
endorsement, to drive the GWD tank truck. The RWA, and all future RWAs, will be required to sign the 
“Conditions for the Introduction and Use of Recycled Water” (Exhibit J) to acknowledge their intent to 
comply with the requirements for the proper use of recycled water. RWAs will receive training prior to 
delivering  and  applying  recycled  water  (Exhibit  K).    Records  of  training  will  be  maintained  by  GWD. 
Specific duties of the RWAs will include:  

 Notify persons within 50 feet if present at the time of recycled water application and 
instruct them they are not to touch or drink the recycled water.  
 Do not apply recycled water where it could spray on external drinking water fountains, 
passing vehicles, buildings, or areas where food is handled or eaten. 
 Wash hands with soap and potable water or apply hand sanitizer after working with 
recycled water, especially before eating.  


 
Section 4-B
Page 37
 Take precautions to avoid food coming in contact with recycled water. Spray, mist or 
runoff shall not enter dwellings, designated outdoor eating areas, or food handling 
facilities.  
 Apply recycled water at rate which does not exceed the agronomic rate. 
 Do not apply recycled water when site is saturated or when it is raining. 
 Prevent recycled water from running off the property.  
 Avoid ponding of recycled water on the property.  
 Keep a log book for each vehicle used to transport recycled water, including date of 
delivery, intended use, volume delivered, name and address of recipient/customer. 
 Inspect the vehicle, appurtenances, tank, and other accessories daily to verify that valves 
and fittings are not leaking 
 Complete a monthly vehicle inspection and written report for GWD files.  

RWAs will follow a daily start and end inspection of the Recycled Water Truck recorded in the RWA daily 
log book, and will perform the following:  

 Throughout daily deliveries, the RWA will keep record of the amount of recycled water filled at 
Goleta Sanitary District, the start and end time of each delivery, and amount delivered 
measured by a meter on the recycled water truck.  
 Daily start and end of day inspection logs will be maintained at GWD with the Recycled Water 
Hauling Program Manager.  

Customers requesting recycled water to their site will be required to have a pre‐inspection. The pre‐
inspection will determine the proximity of the site to a domestic drinking water well. If the site is less 
than 50 feet from a domestic drinking water well, then the site shall not receive recycled water per 
Article 4 Use Area Requirements of Title 22. The pre‐inspection will determine if the site can be accessed 
by the public, its proximity to dwellings, and eating and food handling facilities per Title 22 
requirements. Row crops will not be irrigated with recycled water. Additionally, the pre‐inspection will 
determine whether the customer’s site is equipped with a lead free reduced pressure backflow 
assembly and/or an air gap. GWD requires customers to install a backflow device at the customer’s 
meter. If the site does not have an acceptable backflow prevention device, the site will not receive 
recycled water until such a device is properly installed. In order to receive recycled water by direct 
connection to a customer’s irrigation system, the site would require a physical separation between the 
irrigation system and the potable system. A shutdown, cross‐connection control test will be required 
before recycled water deliveries to ensure that no physical connection exists between the recycled and 
potable water systems. If the site is approved to receive recycled water, per Title 22, the site will be 
annually inspected by the District’s Recycled Water Specialist. Written reports of all customer sites 
receiving recycled water through the hauling program, which will detail site visits, testing, and 
maintenance, will be maintained at GWD, and will be submitted to DDW quarterly.  

 
 
 


 
Section 4-B
Page 38
Dual Plumbed System/Flushing of Urinals and Toilets and Cooling Towers 
State regulations require the separation of potable and all non‐potable systems. In order to comply with 
this  regulation,  the  District  proposes  an  approach  and  methodology  previously  approved  by  DDW  for 
San Diego County Water Authority’s Technical Information Alternative Containers Guide, Dual Plumbed 
Systems, and Cooling Towers.  

All Users must enter into a recycled water user agreement. Users utilizing recycled water for dual 
plumbed systems or cooling towers will be required to follow GWD’s Rules and Regulations and 
Standard Specifications for Recycled Water (Exhibit L) and site supervisors will be required to have 
Recycled Water Use Site Supervisor Training (Exhibit K). Further information regarding rules and 
regulations for recycled water users for dual plumbed systems is described in Section 4.5 below.  

2.3 Producer – Distributor – User 
 
The  Goleta  Sanitary  District  produces  tertiary  recycled  water  at  its  wastewater  treatment  plant  in 
conjunction with GWD, as allowed in California Regional Water Quality Control Board Master Permit 97‐
06. The Goleta Sanitary District is responsible for the production and on site storage of reclaimed water. 
Goleta  Sanitary  District  produces  recycled  water  in  accordance  with  the  monitoring  and  reporting 
requirements  stipulated  in  the  California  Regional  Water  Quality  Control  Board,  Central  Coast  Region, 
Revised Monitoring and Reporting Program No. 91‐03.   
 
GWD  independently  owns  and  operates  the  reclaimed  water  distribution  system  used  to  deliver 
recycled water to customer sites. GWD is regulated under separate water recycling requirements than 
the Goleta Sanitary District.  
 
Recycled Water Hauling Program 
For the Recycled Water Hauling Program, GWD will be the user and applicator of recycled water. GWD’s 
responsibilities will include recycled water training, coordination of customer agreements, maintenance 
and  operation  of  the  recycled  water  truck,  managing  the  RWA,  and  maintaining  and  submitting 
customer site reports. 
 
Dual Plumbed System/Flushing of Urinals and Toilets and Cooling Towers 
For dual plumbed system and cooling tower customers, GWD will be the distributor of recycled water 
and GWD customers will be the users of recycled water. All Users must enter into a recycled water user 
agreement.  Users  of  recycled  water  for  dual  plumbed  systems  will  be  responsible  for  following  the 
current recycled water customer procedure as managed by the District’s Recycled Water Specialist.  
 
Backup or supplemental water will be required in all dual plumbed buildings.  When the supply of 
recycled water to the building is inadequate, a tank may be filled with potable water via an air gap.  
Water shall be handled the same as recycled water from that point and may then be supplied to all the 
approved water closets and urinals within the building. 


 
Section 4-B
Page 39
No physical connection is permitted between the recycled and potable water systems. No hose bibs 
shall  be supplied with recycled water. Construction plans are required for approval by the District 
recycled water specialist and DDW‐authorized County of Santa Barbara Environmental Health Services 
representative. Potential users for dual plumbed sites and cooling towers include the UCSB’s Main 
Campus and other developments. See Section 4.5 for more information regarding the responsibilities of 
recycled water users for dual plumbed systems.  

2.4 Raw Wastewater  
 
Raw  wastewater  is  collected  by  Goleta  Sanitary  District  from  the  unincorporated  area  of  the  Goleta 
Valley immediately west of and adjacent to the City of Santa Barbara, and a portion of the City of Goleta 
around and easterly of the Santa Barbara Municipal Airport.  In addition, Goleta Sanitary District treats 
wastewater under contract with the Goleta West Sanitary District, which serves the remaining western 
portion  of  the  City  of  Goleta,  and  the  unincorporated  area  of  Isla  Vista.  Goleta  Sanitary  District  also 
serves the University of California at Santa Barbara; the Santa Barbara Municipal Airport, which belongs 
to the City of Santa Barbara; and certain Santa Barbara County facilities.  
 
The wastewater treatment system consists of primary settling, biofiltration, activated sludge, secondary 
clarification,  chlorine  disinfection,  and  dechlorination  (Exhibit  M).    For  an  in  depth  description  of  the 
chemical quality of raw wastewater, see the Goleta Sanitary District’s 2012 Annual Pretreatment Report 
for  Monitoring  and  Reporting  Program  No.  R3‐2012‐0012,  NPDES  Permit  #CA0048160.  Approximately 
4%  of  the  total  flow  from  the  service  area  is  from  industrial  sources  and  Goleta  Sanitary  District 
diligently samples and monitors influent heavy metals as summarized in the 2012 Annual Pretreatment 
Report. These sources have been monitored since 1975, when the Goleta Sanitary District initiated its 
pretreatment program. 
 
Goleta Sanitary District’s source control programs include their pretreatment program, a Fats, Oils, and 
Grease (FOG) source control program currently monitoring 90 food service establishments (FSEs). Each 
year  Goleta  Sanitary  District  samples  FSE’s  interceptor,  and  Goleta  Sanitary  District  follows  up 
appropriately  for  non‐compliance.  Goleta  Sanitary  District’s  collections  staff  exceeds  the  preventative 
maintenance  requirements  of  the  FOG  Source  Control  Program.  More  information  on  Goleta  Sanitary 
District’s Source Control Programs can be found in the 2012 Annual Pretreatment Report (Exhibit N). 
 
2.5 Treatment Processes 
 
The  Goleta  Sanitary  District  operates  a  tertiary  recycled  water  treatment  plant  located  in  the  same 
location as the wastewater treatment plant  described above.  The recycled  water treatment plant was 
approved  in  1990  with  the  joint  Goleta  Water  District  and  Goleta  Sanitary  District  Engineering  Report 
(Exhibit O). Disinfected tertiary recycled water is filtered and subsequently disinfected meeting Title 22, 
Section 60301.20 criteria.  
 
 

10 
 
Section 4-B
Page 40
Coagulation and Flocculation 
Secondary  effluent  enters  the  reclamation  facilities  where  a  flash  mixer  disperses  aluminum  sulfate 
(alum) and polymer into the water. The mixing intensity is 750 turns/second with two alum feed pumps 
at 5 GPH capacity each. The alum dose is between 5‐15 mg/L. Detention time is 8.8 minutes.  
 
Filtration 
The  flocculated  secondary  effluent  is  then  gravity  filtered  through  a  bed  of  anthracite  coal  where  the 
floc is removed. There are four filters with a rate of 4.8 gpm/square foot. The filter media is composed 
of  48  inches  of  anthracite.  There  are  two  backwash  pumps  with  a  backwash  rate  of  12  GPM/  square 
foot.  The  filter  loading  rate  does  not  exceed  5  gallons  per  minute  per  square  foot  of  surface  area. 
Filtered wastewater does not exceed an average 2 NTU within a 24‐hour period, 5 NTU more than 5% of 
the time in a 24 hour period, or 10 NTU at any time.  
 
Disinfection 
Recycled water is then sent to a contact chamber where liquid sodium hypochlorite is applied to meet 
disinfection  requirements  at  the  front  end  of  the  chlorine  contact  channel.  A  study  performed  on 
November 13th, 2014, determined that the chlorine disinfection contractor modal contact time is at least 
92.9  minutes  which  complies  with  the  requirements  in  Title  22,  Section  60301.230.  The  study  was 
accepted by the State Water Resources Control Board on January 8, 2015. The chlorinated filtered water 
is  then  stored  in  an  underground  3  million‐gallon  storage  tank  until  distribution.  The  chlorine 
disinfection  process  following  filtration  provides  a  CT  (product  of  total  chlorine  residuals  and  modal 
contact time measured at the same point) value of not less than 450 milligram‐minutes per liter at all 
times with a modal contact time of more than 90 minutes as specified above.  
 
Recycled Water Quality  
Recycled  water  effluent  turbidity  is  monitored  continuously  with  two  on‐line  HACH  turbidimeters. 
Permit limits for reclaimed water effluent turbidity must be met following filtration and may not exceed 
a  mean  of  2  nephelometric  turbidity  units  (NTU),  or  a  maximum  of  5  NTU  which  cannot  be  exceeded 
more than 5% of the time during any 24 hour period. Maximum daily turbidity. Monthly average values 
were stable and fluctuated between a low of 0.2 to a high of 1 NTU. At no time during the year did the 
mean turbidity exceed the 2 NTU limit (2014 Reclaimed Water Annual Report).  
 
Total suspended solids ranged from a monthly averaged low of 1.6 mg/L in June and July to an averaged 
high  of  3.9  mg/L  in  December.  The  reclamation  facility  is  very  effective  at  removing  suspended  solids 
from  secondary  effluent  as  evidenced  by  the  consistently  low  suspended  solids  concentrations  in 
reclaimed water (2014 Reclaimed Water Annual Report).  

11 
 
Section 4-B
Page 41
Table 1: Goleta Sanitary District 2014 monthly averages for recycled water. 

 
 
By providing a bank to draw on when demand is high, the storage reservoir allows the plant to operate 
at a steady rate regardless of demand. Tertiary treated recycled water is pumped through pipelines to 
the  University  of  California,  Santa  Barbara,  local  parks  and  schools,  Sandpiper  and  Glen  Annie  Golf 
Courses,  Bacara  Resort,  business  parks,  and  other  customers.  Further  information  regarding  the 
treatment of recycled water can be found in the Goleta Sanitary District’s Reclaimed Water 2014 Annual 
Report. 
 
2.6 Plant Reliability Features 
 
A  detailed  description  of  plant  reliability  features  can  be  found  in  the  original  Engineering  Report 
(Exhibit O).  
 
2.7 Supplemental Water Supply 
 
Customers  will  required  to  sign  an  agreement  recognizing  they  are  not  guaranteed  the  delivery  of 
potable or recycled water in the event that tertiary recycled water cannot be provided by the Recycled 
Water Hauling Program .  
 
For  the  dual  plumbed  system  and  cooling  tower  users,  the  District  will  provide  potable  water  when 
recycled  water  is  not  available  through  the  User’s  back‐up  potable  water  supply  facility.  Users  will  be 
required to submit a description and plan of the back‐up water supply facilities.   

12 
 
Section 4-B
Page 42
2.8 Monitoring and Reporting  
 
The  Monitoring  and  Reporting  Plan  already  exists  and  is  described  further  in  the  Goleta  Sanitary 
District’s Reclaimed Water 2013 Annual Report and the original Engineering Report (Exhibit O). GWD has 
an existing reporting system consistent with its Master Permit 97‐06.  
 
For the Recycled Water Hauling Program, the RWA, as the designated User Site Supervisor, will collect 
all  necessary  information  from  the  Recycled  Water  Hauling  Program  Manager.  The  RWA  will  submit 
quarterly  observations  and  use  data  reports  per  GWD’s  Monitoring  and  Reporting  Program  97‐06  to 
GWD’s Recycled Water Specialist, whose contact information is provided in Exhibit B. A Salt and Nutrient 
Management  Plan  for  the  Goleta  Groundwater  Basin  is  currently  being  developed  by  GWD  as  a 
component of the update to the 2010 Groundwater Management Plan for the Goleta Water District and 
La Cumbre Mutual Water Company. The point of contact for the development of this plan is provided in 
Exhibit B.  
 
2.9 Contingency Plan  
 
Recycled Water Hauling Program  
In  the  event  that  wastewater  is  inadequately  treated  to  tertiary  standards,  the  recycled  water  filling 
truck will not collect recycled water from the recycled water filling station. Goleta Sanitary District will 
notify  GWD  if  recycled  water  does  not  meet  tertiary  standards.  Customers  of  GWD’s  Recycled  Water 
Hauling Program will be required to sign an agreement that specifies the delivery of recycled water is 
not guaranteed in this instance. 
 
Dual Plumbed System/Flushing of Urinals and Toilets and Cooling Towers 
Sites with indoor recycled water for flushing of urinals and toilets and/or cooling towers will be required 
to  have  potable  water  back‐up  supply.  Dual  plumbed  system  users  will  be  required  to  submit  a 
description and drawings of their back‐up water supply facility to the District as part of an Engineering 
Report. Cooling tower customers will be required to submit a description and drawing of back‐up water 
supply  facilities  for  the  cooling  tower.  If  recycled  water  service  is  shutdown,  back  up  water  must  be 
delivered  through  an  air  gap.  Goleta  Sanitary  District  is  responsible  for  notifying  the  GWD  of  any 
recycled water emergencies. GWD will immediately inform all recycled water users of emergency and/or 
shortage.  Reports  of  all  incidents  will  be  filed  with  the  Central  Coast  Regional  Water  Quality  Control 
Board.  

The user supervisor or worker must notify the District immediately if the following occurs:  
a. The on‐site drinking water‐supply appears to have been contaminated due to a connection to 
the recycled water system.  

b. Any emergencies, such as an interruption of recycled water supply or unusual appearance of 
color and/or odor in the recycled water.  

13 
 
Section 4-B
Page 43
c. Any unauthorized release of recycled water that leaves the user’s site (resulting from breaks 
and/or leaks. etc.  
 
In the event of an emergency (M‐F, 8 AM to 5 PM) or to obtain additional information concerning the 
District’s  recycled  water  or  distribution  system,  they  shall  contact  the  District’s  Recycled  Water 
Coordinator  at  (805)  879‐4652.  For  after‐hour  emergencies,  they  shall  contact  the  District's  24‐Hour 
telephone service at (805) 964‐6761. 
 
3 TRANSMISSION AND DISTRIBUTION SYSTEMS 

GWD owns, operates, and maintains all recycled water transmission and distribution pipelines from the 
Goleta Sanitary District to the meters of 24 existing customers. Current and future customers will 
receive water through a metered connection to the District distribution system or by truck as described 
previously. The distribution system consists of water mains, service lines, meters, pumps, etc., and 
District approved recycled water truck(s). The User's onsite plumbing, including dual plumbing, 
landscape irrigation or approved storage (such as lined pond) is not considered part of the District 
distribution system.  

 
4 USE AREAS 
 
Recycled Water Hauling Program  
The  use  areas  for  the  Recycled  Water  Hauling  Program  will  extend  from  GWD’s  service  area  and  El 
Capitan  to  the  west,  Carpinteria  to  the  east,  the  Santa  Ynez  Mountains  to  the  north,  and  the  Pacific 
Ocean to the south. Detailed maps of these use areas are in Exhibits A and C‐G.  GWD will be responsible 
for the distribution of recycled water to each customer site. Agencies involved in the program are listed 
in  Exhibit  B.  All  areas  to  receive  recycled  water  whether  on  public  or  private  land  shall  have  a  visible 
sign, in a size no less than 4 inches high by 8 inches wide, that include the wording, “Recycled Water – 
Do Not Drink.” An international symbol must be provided on the signage with a glass of water with a 
slash through it (Figure 60310‐A, Title 22). Example signage can be found in Exhibit I.  
 
Dual Plumbed System/Flushing of Urinals and Toilets and Cooling Towers 
All dual plumbed systems must be within the District boundary and receive metered water through the 
District  distribution  system.  GWD  will  be  responsible  for  the  distribution  to  the  use  area  through  the 
recycled  water  distribution  pipeline.  All  users  applying  for  recycled  water  for  the  purposes  of  a  dual 
plumbed system will be required to submit plans and specifications to GWD, which will be reviewed by 
Santa  Barbara  County,  and  DDW.  Dual  plumbed  system  users  will  be  responsible  for  submitting  an 
Engineering  Report  to  GWD.  All  rooms  in  commercial,  industrial,  and  institutional  occupancies  using 
recycled  water,  including  all  restrooms  with  recycled  water  for  toilet  and  urinal  flushing  shall  be 
identified  with  signs.  The  international  symbol  must  be  provided  on  the  signage  with  a  glass  of  water 
with a slash through it (Figure 60310‐A, Title 22). Signs shall read, “RECYCLED WATER – DO NOT DRINK.” 

14 
 
Section 4-B
Page 44
Signage shall be affixed to the toilet or urinal or bathroom stall with font at least 0.5 inches tall. Further, 
each  room  containing  recycled  water  equipment  shall  have  a  sign  of  at  least  1  inch  font  reading, 
“CAUTION  RECYCLED  WATER,  DO  NOT  DRINK,  DO  NOT  CONNECT  TO  DRINKING  WATER  SYSTEM”  with 
the international symbol mentioned above.  

4.1 Irrigation  
 
The GWD RWA will be trained on the proper application of recycled water to landscapes. The trained 
RWA will not apply recycled water when it is raining, nor to saturated soil. Recycled water application 
will not exceed the agronomic rate nor create spray to cause a nuisance or threat to public health. The 
application will minimize ponding of recycled water and any subsequent runoff. Utilizing general 
irrigation estimates, an average turf lawn should receive approximately 0.75 gallons of water per square 
foot per application.  An average GWD residential lawn of 1,500 square feet would require 1,125 gallons 
each time it is watered.  On average, a GWD resident may also have 500 square feet of landscape plants 
such as flowers, shrubs, bushes, and trees with an estimated water need of 0.5 gallons per square foot.  
Thus, the average non‐turf landscape water need would be 250 gallons per residence.  Accordingly, the 
total estimated customer delivery for an average lawn and landscaped yard in GWD would be 1,375 
gallons. When customers apply to the program, an estimate is made for the appropriate site specific 
volume based on the square footage of the landscape. The volume of recycled water requested is not 
guaranteed due to Title 22 procedures to minimize ponding and eliminate runoff.  
 
As mentioned above, there shall be a pre‐inspection of the property to ensure the site is compliant with 
Title 22, Article 4 Use Area Requirements. Irrigation shall be confined to the designated recycled water 
use area. Spray mist, or runoff shall not enter dwellings, designated eating areas, or food handling 
facilities. Drinking water fountains shall be covered when applying recycled water. Coordination with 
customers to determine the best time of delivery will minimize public interaction with recycled water 
(e.g. when golf courses are closed). The RWA will advise members of the public in the area to keep at 
least 50 feet away from irrigated areas. As additional warning to the public, use areas will have the 
required signage mentioned above.  

If the site requests recycled water be delivered into a fixed irrigation system, the site will be required to 
have a physical separation between the irrigation  system and the  potable system. A shutdown,  cross‐ 
connection  control  test  will  be  performed  prior  to  recycled  water  delivery  to  ensure  that  no  physical 
connection  exists  between  the  recycled  water  system  and  any  separate  system  conveying  potable 
water.  The  backflow  prevention  device  shall  be  inspected  and  maintained  in  accordance  with  Section 
7605  of  Title  17.  The  hose  will  only  be  connected  to  the  recycled  water  hauling  truck  and  will  be 
operated by the GWD RWA.  

4.2 Impoundments 

The  Recycled  Water  Hauling  Program  will  not  result  in  the  use  of  recycled  water  for  impoundment 
purposes.  

15 
 
Section 4-B
Page 45
4.3 Cooling  
Users will be responsible for submitting all plans, specifications, and descriptions for the cooling tower 
system and potable‐water back‐up supply. Designs, plans and specifications shall include: 
 Description/location of recycled water use area 
 Site piping diagram illustrating compliance with all separation requirements 
 Description of pipe/valve labeling scheme 
 Description and location of backflow prevention 
 Description and location of signage 
 Description (manufacturer’s specifications) for drift eliminator(s). All new or retrofitted 
cooling towers must include a high efficiency drift eliminator that serves to collect and 
condense fine mist 
 Description of proposed bacteriological control system that meets Department of 
Drinking Water standards. Also to include schematic flow diagrams if appropriate. 
 Description and plan of back‐up water supply 
 Location of connection(s) to sanitary sewer system 
 
These plans and specifications will be reviewed by GWD, County of Santa Barbara, Environmental Health 
Services, and DDW. If recycled water is used inside the building for uses beyond cooling, the building will 
be considered dual‐plumbed and must also comply with dual‐plumbed system requirements in this 
Engineering Report and in Section 4.5.  
 
Whenever a cooling system, using recycled water in conjunction with an air conditioning facility, utilizes 
a cooling tower or otherwise creates a mist that could come into contact with employees or members of 
the public, the cooling system shall comply with the following: (1) A drift eliminator shall be used 
whenever the cooling system is in operation. (2) A chlorine, or other, biocide shall be used to treat the 
cooling system recirculating water to minimize the growth of Legionella and other microorganisms (Title 
22, Section 60306 Use of Recycled Water for Cooling).  
 
Sites will be required to pass an initial cross‐connection control test by GWD’s Cross Connection Control 
Specialist, and any test required thereafter.  All sites will have an annual visual inspection following 
GWD’s current Recycled Water User Agreement, Rules and Regulations. The visual inspection will be 
conducted by GWDs Recycled Water Specialist and Site Supervisor. Results will be included in the annual 
monitoring report. No physical connection shall be made or allowed to exist between the recycled water 
system and any separate system conveying potable water. The portions of recycled water piping system 
that are in areas subject to access by the general public shall not include any hose bibs.  Backflow 
prevention devices will be required as close as practical to the meter(s) for all potable services on the 
property, and shall be inspected and maintained in accordance with Section 7605 of Title 17. 
 
Users will be required to have advisory signs to inform workers and the general public that recycled 
water is in use, especially when there is probability of coming into contact with recycled water. Signs 
shall read, “RECYCLED WATER – DO NOT DRINK.” The international symbol must be provided on the 

16 
 
Section 4-B
Page 46
signage with a glass of water with a slash through it (Figure 60310‐A, Title 22). Signage shall be with font 
at least 0.5 inches tall. Each room containing recycled water equipment shall have a sign of at least 1 
inch font reading, “CAUTION RECYCLED WATER, DO NOT DRINK, DO NOT CONNECT TO DRINKING 
WATER SYSTEM.” 
 
4.4 Groundwater Recharge  
 
The  Recycled  Water  Hauling  Program  will  not  result  in  the  use  of  recycled  water  for  groundwater 
recharge purposes.  

4.5 Dual Plumbed Use Areas 

GWD is requesting the additional use of recycled water for flushing toilets and urinals within the GWD 
service area supplied through service connections from the GWD distribution system. Recycled water for 
indoor  use  will  be  in  compliance  with  Article  5  Dual  Plumbed  Recycled  Water  Systems  in  Title  22.  No 
recycled  water  shall  be  used  for  indoor  use  to  a  facility  that’s  primary  purpose  is  to  process  food 
products and beverages. GWD will not deliver recycled water to a facility using a dual plumbed system 
unless  the  report  required  pursuant  to  section  13522.5  of  the  Water  Code  has  been  submitted  and 
approved by the regulatory agency. GWD will require an initial cross connection control test at the dual 
plumbed site. Additionally, GWD will require the customer to submit plans and an Emergency Response 
Plan to GWD and County of Santa Barbara Environmental Health Services for review. GWD’s Rules and 
Regulations for Recycled Water can be found in Exhibit L.  

All  rooms  in  commercial,  industrial,  and  institutional  occupancies  using  recycled  water  for  toilet  and 
urinal flushing shall be identified with signs. Signs shall read, “RECYCLED WATER – DO NOT DRINK” and 
shall  be  affixed  to  the  toilet  or  urinal  with  font  at  least  0.5  inches  tall.  Further,  each  room  containing 
recycled water equipment shall have a sign of at least 1 inch font reading, “CAUTION RECYCLED WATER, 
DO NOT DRINK, DO NOT CONNECT TO DRINKING WATER SYSTEM.”  

The designated Site Supervisor for the site utilizing recycled water for the purposes of toilet and urinal 
flushing will submit written quarterly observations and data to the GWD Recycled Water Specialist. The 
site will also be annually inspected by the GWD Recycled Water Specialist. Per Title 22, GWD will test the 
dual  plumbed  system  for  possible  cross  connection  with  the  potable  water  system  every  four  years 
(60316.  Operation  Requirements,  Title  22).  Additional  information  on  GWD’s  updated  Rules, 
Regulations, and Standard Specifications for Recycled Water is located in Exhibit L. These records will be 
submitted to the Central Coast Regional Water Quality Control Board per the General Waste Discharge 
Requirements  for  Recycled  Water  Use.  GWD  will  contract  a  building  inspector  to  properly  inspect  the 
dual  plumbed  systems  to  ensure  there  is  no  cross  connection  and  all  proper  backflow  prevention 
devices are in place. All dual plumbed systems will be reviewed for compliance with Title 22 and other 
regulatory codes.  

17 
 
Section 4-B
Page 47
In  addition  to  the  existing  University  of  California,  Santa  Barbara  (UCSB)  Bren  Hall  Building,  Goleta 
Beach,  and  the  United  States  Postal  Service  Storke  location,  potential  future  customers  requesting 
recycled water for toilet and urinal flushing include UCSB for new student housing developments.  

4.6 Other Industrial Uses 
The  Recycled  Water  Hauling  Program  will  not  result  in  the  use  of  recycled  water  for  other  industrial 
uses.  
4.7 Use Area Design  

Recycled Water Hauling Program  
The  domestic  water  distribution  systems  of  the  entities  to  receive  recycled  water  shall  be  protected 
from  the  recycled  water  of  the  GWD  Recycled  Water  Hauling  Program  in  accordance  with  the 
regulations relating to cross connections. If the site requests recycled water to be delivered to a fixed 
irrigation system, the site will be required to have a physical separation between the irrigation system 
and the potable system. A shutdown, cross‐connection control test will be performed prior to recycled 
water delivery to ensure that no physical connection exists between the recycled water system and any 
separate system conveying potable water. 

 All air gaps and backflow prevention devices will be required to be inspected annually. Failure to comply 
with inspection requirements will result in termination of authorized delivery of recycled water to the 
subject site.  

Recycled water delivered through the Recycled Water Hauling Program shall remain on the authorized 
use area at all times.  Accordingly, application of recycled water will not occur when it is raining, when 
the soil is saturated, or at an agronomic rate that would allow for the ponding and runoff  of recycled 
water off the designated use site.  

Dual Plumbed System/Flushing of Urinals and Toilets and Cooling Towers 
Every customer must apply for and obtain approval for onsite dual plumbing and landscape irrigation 
prior to approval of a recycled water connection.  Submitted plans must conform to the District, DDW 
permit requirements, as well as any other applicable local and state statutes. Plans must receive signed 
approval from a District Recycled Water Specialist and DDW authorized representative (currently County 
of Santa Barbara Environmental Health Services). GWD will perform an initial cross‐connection test at 
dual plumb and cooling tower recycled water sites. GWD will also contract inspect the dual plumbed 
system for compliance and protection from cross‐connection contamination. Additional information on 
GWD’s updated Rules, Regulations, and Standard Specifications for Recycled Water is located in Exhibit 
L.  

4.8 Use Area Inspection and Monitoring  
 
The  inspections  and  monitoring  program  will  be  consistent  with  the  existing  Central  Coast  California 
Regional Water Quality Control Board Monitoring and Reporting Program No. 97‐06. GWD‐trained staff 
will  perform  annual  visual  inspections  of  each  site  receiving  recycled  water,  including  the  Recycled 

18 
 
Section 4-B
Page 48
Water  Hauling  Program,  to  ensure  compliance  with  public  notification  and  backflow  prevention. 
Inspection records will be maintained at the GWD headquarters.  
 
Recycled Water Hauling Program 
On a monthly basis, GWD staff will inspect and log all recycled water hauling vehicles to verify that the 
vehicles  are  capable  of  carrying  recycled  water  without  leaks.  A  written  report  of  each  vehicle  will  be 
prepared for each quarterly report.  
 
Dual Plumbed System/Flushing of Urinals and Toilets and Cooling Towers 
The designated Site Supervisor for the site utilizing recycled water for dual plumbed systems and cooling 
towers will submit written quarterly observations and data to GWD’s Recycled Water Specialist. The site 
will  also  be  annually  inspected  by  the  GWD  Recycled  Water  Specialist.  Per  Title  22,  GWD  will  test  the 
dual  plumbed  system  for  possible  cross  connection  with  the  potable  water  system  every  four  years 
(60316. Operation Requirements, Title 22). 
 
4.9 Employee Training  

GWD  will  conduct  an  initial  training  session  with  the  RWA  and  any  persons  to  be  involved  with  the 
program. All Site Supervisors will undergo training with GWD’s Recycled Water Specialist. The training 
manual is attached in Exhibit K.  

19 
 
Section 4-B
Page 49
EXHIBIT A

PROPOSED SERVICE AREA FOR RECYCLED WATER HAULING

GOLETA WATER DISTRICT

Section 4-B
Page 50
Section 4-B
Page 51
EXHIBIT B

CONTACT INFORMATION FOR INVOLVED ENTITIES

Section 4-B
Page 52
Contact Information for involved entities:
Goleta Water District
4699 Hollister Avenue
Goleta, CA 93110

Water Supply and Conservation Manager


Ryan Drake
rdrake@goletawater.com
(805) 879-4627

Operations Manager
Tom Bunoksy
tbunoksy@goletawater.com
(805) 879-4630

Engineering Manager
Chris Gabriel
cgabriel@goletawater.com

Cross Connection / Recycled Water Specialist


Joy McAndress
jmcandress@goletawater.com
(805) 879-4639

Senior Water Resource Analyst


Brooke Welch
Contact for Salt and Nutrient Management Plan for the Goleta Groundwater Basin
bwelch@goletawater.com
(805) 879-4626

Goleta Sanitary District


1 William Moffett Place
Goleta, CA 93117
Assistant General Manager/Assistant District Engineer
Steve Wagner
swagner@goletasanitary.org
(805)

La Cumbre Mutual Water Company


695 Via Tranquila
Santa Barbara, CA 93110
General Manager
Mike Alvarado
malvarado@lacumbrewater.com
(805) 967-2376

Section 4-B
Page 53
City of Santa Barbara
630 Garden Street
Santa Barbara, CA 93101
Water Reclamation Specialist
Santa Barbara Water Resources
Maggie Heinrich
mheinrich@santabarbaraca.gov
(805) 564-5406

Montecito Water District


583 San Ysidro Road
Montecito, CA 93108
Engineering Manager
Tom Evans
tevans@montecitowater.com
(805) 969-2271

Water Conservationist
Mike Clark
mike@montecitowater.com
Office: (805)969-2271
Cell: (805) 895-6392

Carpinteria Valley Water District


1301 Santa Ynez Avenue
Carpinteria, CA 93013
Water Conservationist
Rhonda Gutierrez
Rhonda@cvwd.net
(805) 684-2816 x116
(805) 708-7022

Associate Engineer
Brian King, P.E.
brian@cvwd.net
(805) 684-2816 x103

El Capitan Mutual Water Company


11500 US Highway 101
Goleta, CA 93117
Steve Tanner
stanner@pueblo-water.com

Section 4-B
Page 54
EXHIBIT C

PROPOSED SERVICE AREA FOR RECYCLED WATER HAULING

LA CUMBRE MUTUAL WATER COMPANY

Section 4-B
Page 55
Section 4-B
Page 56
EXHIBIT D

PROPOSED SERVICE AREA FOR RECYCLED WATER HAULING

CITY OF SANTA BARBARA

Section 4-B
Page 57
Section 4-B
Page 58
EXHIBIT E

PROPOSED SERVICE AREA FOR RECYCLED WATER HAULING

MONTECITO WATER DISTRICT

Section 4-B
Page 59
Section 4-B
Page 60
EXHIBIT F

PROPOSED SERVICE AREA FOR RECYCLED WATER HAULING

CARPINTERIA VALLEY WATER DISTRICT

Section 4-B
Page 61
k
j Foothill Reservoir
"
S
!
? k
jT
U
FOOTHILL RD
"
S !
?
"
S

"
S
!
?
FOO
THIL
"
S L RD
PE
DA

RD
RO

LN

ICA
LN

ENS

ON
AM
CRAV
"
S

NT
SA
"
S !
?
? "
! S

VE
FOO
THIL Gobernador Reservoir
Legend

EN A
L
Carpinteria Reservoir
U
T
RD
VIA R
k
j Uk
T

LIND
E AL
"
S
!
? j
"
S "
S k
j
U
T Reservoirs "
S "
S !
?

RD
"
S "
S

S
"
S CA

PAS
S IT
!
? AS
SA

k
j Booster Pump PA k
j

AS
N

S
DP

SR
"
S GO

SIT
k
j D
O

D BE
IN

NR RN

CA
"
S Y
T

C
k
j Well Pump OR Shepard Mesa Tank AD
RD

"
S N AD OR
ER
U
T
CY
k
j GO
B NR

C
A
D

R
PI
!
? PRV Open

NT
E
R
IA
AV
DEL CA
!
? PRV Closed SIT

E
!
? MA
RA
VE
AS
PA
SS
R D
"
S Division Gate Valves
Water Mains "
S SHEPARD MESA RD
!
? D
S SR
PA
Lat 2-R Pressure Zone S IT
AS
CA

Lat 3-R Pressure Zone


!
?"
S "
S
Lat-10 Pressure Zone CA
RP
INT
ER
IA A
VE
Lat-13 Pressure Zone
VIA
R E AL
Lat-19 Pressure Zone
0
15
Lat-22A Pressure Zone HW
Y

Lat-22B Pressure Zone


!
?
Lat-30 Pressure Zone
"
S
Sherpard Mesa Zone

RD
LL
Rincon Pressure Zone

HI
O N
NC
RI
Future Upper Ranch Zone
SCC Pressure Zone
District Boundary 0 0.5 1 2 3 4
Miles

Decemberl 2014 Carpinteria Valley Water District Created by CVWD Engineering Section 4-B
Page 62
EXHIBIT G

PROPOSED SERVICE AREA FOR RECYCLED WATER HAULING

EL CAPITAN MUTUAL WATER COMPANY

Section 4-B
Page 63
Section 4-B
Page 64
EXHIBIT H

CONTACT INFORMATION FOR REGULATORY AGENCIES

Section 4-B
Page 65
Contact Information for Regulatory Agencies:

State Water Resource Control board


Division of Drinking Water
Santa Barbara Field Office
1180 Eugenia Place, Suite 200
Carpinteria, CA 93010
Jeff Densmore
Jeff.densmore@waterboards.ca.gov

Central Coast Regional Water Quality Control Board


895 Aerovista Place, Suite 101
San Luis Obispo, CA 93401
Peter Von Langen, Engineering Geologist
Peter.vonlangen@waterbaords.ca.gov
(805) 549-3688

Santa Barbara County


Environmental Health Services
225 Camino Del Remedio
Santa Barbara, CA 93110
Norm Fujimoto, Plan Checker, Singe and Multiple Water Systems
Norman.Fujimoto@sbcphd.org
(805) 681-4817

Section 4-B
Page 66
EXHIBIT I

SAMPLE SIGNAGE

Section 4-B
Page 67
Section 4-B
Page 68
EXHIBIT J

CONDITIONS FOR THE INTRODUCTION AND USE OF RECYCLED WATER

Section 4-B
Page 69
GOLETA WATER DISTRICT

Conditions for Recycled Water Applicator of the Recycled Water Hauling Program

1. Cross-connections between recycled water and potable water are strictly prohibited. Take
preventative measures to ensure no cross-connections can occur.
2. Never modify the fittings on the Recycled Water Filling Station or connections on the truck.
3. Do not drink recycled water.
4. Do not spray any person, drinking fountain, or surface for eating or food handling with recycled
water.
5. Inspect the hauling truck daily, both filled and unfilled, for any leaks. Inspect the vehicle monthly
to comply with the District’s vehicle reporting system.
6. Only apply recycled water to permitted customers that have completed a pre-inspection, have
needed signage, and have installed backflow prevention devices.
7. Only deliver recycled water to fixed irrigation systems that have been pre-approved.
8. Report any problems immediately to the Recycled Water Manager at (805) 879-4637
9. Use recycled water for landscape irrigation, soil compaction, and dust control only.
10. Update log with necessary information for each customer.

NAME: __________________________________ DATE: _____________________________

I, the undersigned, agree to meet the above requirements and understand that failure to do so
warrants a violation of the proper use of recycled water in the Goleta Water District.

SIGNATURE: __________________________________________________________________

Section 4-B
Page 70
EXHIBIT K

RECYCLED WATER USE SITE SUPERVISOR TRAINING

Section 4-B
Page 71
RECYCLED WATER
USER MANUAL
January 2010

Use Water Wisely


There is Never Enough to Waste

GOLETA WATER DISTRICT


Section 4-B
Page 72
DISCLAIMER

This manual is only a guideline and does not constitute a legal or binding agreement
between responsible parties from which liability could occur. Since Santa Barbara
County Environmental Health Services ("EHS"), California Regional Water Quality
Control Board Central Coast Region ("RWQCB") and other concerned regulatory
agencies have jurisdiction over the use of recycled water, additional specific
requirements for individual users may apply.

The Goleta Water District provides this user manual for anyone involved in the use of
recycled (non potable) water received from the Goleta Water District recycled water
distribution system (generated from the Goleta Sanitary District Reclamation Facility.)
These guidelines are not intended to be used in place of local laws, State regulations or
the design by engineers necessary for the use of recycled water.

Goleta Water District

4699 Hollister Avenue Goleta, CA 93110-1999


24/7 Telephone: 805/964-6761
Fax: 805/879-4657
Email: info@goletawater.com
Web: www.goletawater.com

2
Section 4-B
Page 73
TABLE OF CONTENTS

DISCLAIMER AND CONTACT INFORMATION

SECTION 1 INTRODUCTION

1.1 Purpose
1.2 Emergency Procedures and Contacts
1.3 Introduction to Recycled Water

SECTION 2 ON -SITE TRANSMISSION/DISTRIBUTION LINES

2.1 Pressure
2.2 Minimum Separation
2.3 Pipe Identification
2.4 Identification of all surface appurtenances, including valve boxes
2.5 Blow-Off Assemblies

SECTION 3 ON -SITE PUMPING

3.1 Marking
3.2 Surge Protection

SECTION 4 ON-SITE APPLICATIONS

4.1 Strainers at Meter/Point of Connection


4.2 Controllers
4.3 Cross-Connection Control
4.4 System Identification
4.5 Drinking Fountains
4.6 Construction Water
4.7 Specific Provisions
4.8 Irrigation Application Rate and Practice
4.9 Equipment and Facilities

SECTION 5 SYSTEM MANAGEMENT

5.1 Quality Control


5.2 Control of On-site Use
5.3 Facilities Operation
5.4 Recycled Water Systems
5.5 Violations

SECTION 6 SPECIFIC REQUIREMENTS FROM THE RWQCB WATER RECLAMATION


REQUIREMENTS, ORDER NO. 97-06

APPENDICES
A. California Regional Water Quality Control Board Water Reclamation
Requirements, Order No. 97-06

B. Title 22 California Code of Regulations

C. Goleta Water District Code, Title 7 Recycled Water Rules and Regulations

FREQUENTLY ASKED QUESTIONS

3
Section 4-B
Page 74
SECTION ONE

INTRODUCTION

1.1 PURPOSE

This user manual provides guidance for working


with water from the Goleta Water District
("District") recycled water distribution system.
The uses of recycled water include, but are not
limited to, landscape irrigation, and construction
dust control and soil compaction. The District
considers and approves other uses strictly on a
case-by-case basis. Please note this manual
does not address the use of "gray water" or user
on-site treatment systems. The manual’s
guidelines are organized into six sections
followed by appendices:

 Section one provides emergency contacts and a brief introduction to the recycled water system

 Sections two and three provide essential design criteria and specifications for the construction of
the on-site transmission and pumping facilities (if needed)

 Section four provides essential design and operating requirements for the water user's on-site
facilities

 Section five provides a description of the system management required to assure continued
compliance with applicable State and local laws

 Section six provides specific requirements from the California Regional Water Quality Control
Board Central Coast Region ("RWQCB") Water Reclamation Requirements, Order No. 97-06

1.2 EMERGENCY PROCEDURES AND CONTACTS

1.2.1 Emergency Procedures

The user supervisor or worker must notify the District immediately if the following occurs:

a. The on-site drinking water-supply appears to have been contaminated due to a connection to
the recycled water system.

b. Any emergencies, such as a halt in the recycled water supply or unusual appearance of color
and/or odor in the recycled water.

c. Any unauthorized release of recycled water that leaves the user’s site (resulting from breaks
and/or leaks. etc.

4
Section 4-B
Page 75
1.2.2 Goleta Water District Contact Information

In the event of an emergency (M-F, 8 AM to 5 PM) or to obtain additional information concerning


the District’s recycled water or distribution system, please contact the District’s Recycled Water
Coordinator at (805) 879-4652. For after-hour emergencies, contact the District's 24-Hour
telephone service at (805) 964-6761.

1.3 INTRODUCTION TO RECYCLED WATER

The current term “Recycled Water” is used in


place of the older term “Reclaimed Water”
which is no longer in common usage in the
State of California. The District’s recycled
water is highly treated domestic wastewater. It
is clear, odorless water that meets the most
stringent State and local health agencies'
requirements. The District’s recycled water is
safe from a health standpoint and is suitable
for landscape irrigation and construction dust control and soil compaction. However, this water
is non-potable and is not to be used for human consumption. Take precautions to minimize
contact with the recycled water.

Detailed requirements regarding the use of recycled water are contained in the Goleta Water
District Code, Title 7 Recycled Water System Rules and Regulations ("Rules and Regulations").
The user supervisor in charge of recycled water operations should have a copy of the Rules and
Regulations for reference.

SECTION TWO

ON-SITE TRANSMISSION/DISTRIBUTION LINES

This section provides guidelines for the design of user’s on-site transmission/distribution
facilities. Cross-connection control is necessary to prevent any element of a recycled water
distribution system from mistakenly being connected to a potable water system. The location,
depth, mode of identification and types of aboveground appurtenances such as hose
connections, air/vacuum assemblies and blow-offs should be studied carefully in order to avoid
cross-connections and ensure appropriate use of recycled water.

2.1 PRESSURE

Pressure requirements will be based on user system design. It is intended that the District will
maintain minimum pressure at the user’s meter at the peak demand hour.

2.2 MINIMUM SEPARATION

Recycled water lines parallel to potable water or sanitary sewer lines in the user's system shall
be installed at least ten feet away horizontally. Recycled water lines perpendicular to potable
water lines shall be installed at least one foot below the potable water line. Recycled water lines
perpendicular to sanitary sewer lines shall be installed at least one foot higher than the sanitary
sewer lines. In situations where separations cannot be maintained, the District may require
special construction practices. Approval will be required from EHS, RWQCB and other

5
Section 4-B
Page 76
concerned regulatory agencies.

2.3 PIPE IDENTIFICATION

2.3.1 General. Identify all new buried


transmission/distribution piping for the
on-site recycled water distribution
system with the words “CAUTION:
RECYCLED WATER." Use purple
identification tape or a purple
polyethylene vinyl wrap displaying this
message. Use color-coded identification
tape differentiating the recycled water
piping from other utility lines throughout
the site. This includes service lines,
valves and other appurtenances.

When converting an existing potable water line


to recycled water use, the water line shall be
accurately located and tested in coordination
with EHS, RWQCB and other concerned
regulatory agencies. This will bring the water
line and appurtenances into compliance with
regulatory standards, including Title 22 of the
California Code of Regulations.

Disconnect potable water services from potable water pipelines, which have been converted to
recycled water use. If the existing line meets the approval of the District, EHS, RWQCB and
other concerned regulatory agencies, except for the pipe identification; the line will be approved
for recycled water distribution.

2.3.2 Identification Pipe. Purple colored pipe, or purple polyethylene vinyl wrap, with the
words "CAUTION: RECYCLED WATER," printed on the pipe is the preferred method of pipe
identification. The warning should be stamped on opposite sides of the pipe, repeated every
three feet.

2.3.3 Identification Tape. As an alternative, identification tape may be installed on pressure


and/ or non-pressure pipe laterals when identification pipe is unavailable. A purple tape with
black or white lettering stating “CAUTION: RECYCLED WATER" shall be fastened directly to
the top of the pipe. The tape shall run continuously the entire length of the pipe and shall be at
least 3-inches in width, fastened to the pipe at 10-foot intervals.

“CAUTION: RECYCLED WATER”

2.4 IDENTIFICATION OF ALL SURFACE APPURTENANCES, INCLUDING VALVE BOXES

Consistently identify all surface appurtenances, valve boxes and other surfaces. Use color-
coded (purple) with the words "CAUTION: RECYCLED WATER" to differentiate recycled water
facilities from potable water and wastewater facilities.

6
Section 4-B
Page 77
2.5 BLOW-OFF ASSEMBLIES

Either an in-line type or end-of-line type blow-off or drain


assembly shall be designed and installed for removing water or
sediment from the recycled water pipe. The line tap for the
assembly shall be no closer than 18-inches to a valve,
coupling, joint or fitting unless it is at the end of the line.

Avoid runoff or direct discharge of irrigation water. If there is a


potential for runoff or direct discharge to an adjacent surface
water feature, the District must be consulted during the design
phase in order to determine an acceptable and working
alternative.

SECTION THREE

ON-SITE PUMPING

Users with pumping facilities to distribute recycled water on-site shall make special provisions:

• Identify the type of water being handled by the pumping equipment in conformance with
paragraph 2.4.

• Provide acceptable backflow protection at the meter, in conformance with Title 22 of the
California Code of Regulations.

Uncontrolled releases of recycled water and/or pump packing seal water are not permitted.

3.1 MARKING

Use the color purple to identify all exposed and


aboveground piping, fittings, pumps, valves, etc.
In addition, clearly label all piping with the words
"CAUTION: RECYCLED WATER." For pump
stations, post at least one sign on the fence to
clearly identify the use of recycled water.

3.2 SURGE PROTECTION

All pumping systems shall have proper surge


protection equipment to prevent the loss of
recycled water through broken piping resulting
from water hammer and pressure surges.

7
Section 4-B
Page 78
SECTION FOUR

ON-SITE APPLICATIONS

Recycled water users may require special


accessories. Since irrigation operations
normally occur at night, automatic
controllers are required on-site. A backflow
prevention device shall be installed at the
discharge of the potable water meter when
a recycled water system shares a use area
with a potable water system. This must be
accomplished with the approval of EHS,
RWQCB and other concerned regulatory
agencies and the District. Recycled water
pipelines, equipment and irrigated areas
shall be identified and clearly marked in
conformance with paragraphs 2.3 and 2.4.

4.1 STRAINERS AT METER/POINT OF CONNECTION

While not normally needed, the installation and operation of strainers on recycled waterlines
shall be the responsibility of the user. Strainers should be of sufficient size to remove particles
that would otherwise plug irrigation nozzles.

4.2 IRRIGATION CONTROLLERS

The following requirements are needed when irrigation controllers are used to automatically
open and close the on-site distribution valves:

• Fully automatic

• Capable of delivering water from five minutes to 60 minutes per each start time

• Color-coded to differentiate the recycled water from the potable water

• Labeled inside and outside to warn others the system is using recycled water

Always alert the system's maintenance personnel of any important constraints on the operation of the
system.

An appropriate sized drawing of the area served by the controller should be sealed in a
protective plastic cover, placed in the controller and updated when the system operation or
configuration has changed.

4.3 CROSS-CONNECTION CONTROL

Completely separate recycled water systems from the domestic water supply system.
Connections between these systems are not allowed. Dual water systems require the prior
approval of the District, EHS, RWQCB and other concerned regulatory agencies for air gaps or
backflow prevention devices. If potable water is needed as a backup source of supply for the
recycled water systems, an approved air gap must be provided to prevent a cross- connection
and protect the potable water system.

8
Section 4-B
Page 79
Backflow prevention devices are not normally used on
recycled water systems. However, in order for the District to
maintain the water quality in the recycled water distribution
system, a backflow prevention device may be required at a
specific meter where on-site exposures could affect the
quality of the recycled water supply.

If a temporary potable water backup supply to the recycled


water system is needed, the connection shall be protected
with an air gap. Exceptions may be necessary under
special circumstances, but in any case, they will not be
allowed unless approved by the District, EHS, RWQCB and
other concerned regulatory agencies.

4.4 SYSTEM IDENTIFICATION

The user's recycled water system shall be clearly identified to differentiate it from the potable
water system.

Hose Bibs are not allowed on recycled water irrigation systems. Use quick couplers if hose
connections are necessary. Fittings shall be such that interconnection cannot be made
between the potable and recycled water systems. Install signs to clearly identify the recycled
water quick coupling and potable water quick couplers within 60 feet of a recycled water system.
Hoses used for recycled water conveyance shall not be used on potable water systems.

4.5 DRINKING FOUNTAINS

The location and design of potable water drinking fountains must meet the requirements of the
District's RWQCB, Order No. 97-06, and California Code of Regulations, Title 22, by means of a
stainless steel cover approved by the RWQCB.

4.6 CONSTRUCTION WATER

 Clearly identify water trucks, hoses, drop tanks and related equipment with signage
stating recycled water is not suitable for human consumption.

 Obtain advanced approval from the District regarding the use of recycled water for
construction purposes. Provide the District sufficient time to review the request before
construction begins.

 Carefully instruct equipment operators on the requirements involving the proper use and
the potential hazards of recycled water described in the District’s User Manual.

 Remember that recycled water cannot be introduced into any domestic water piping
system and no connection can be made between equipment containing recycled water
and any part of the domestic water system.

9
Section 4-B
Page 80
4.7 SPECIFIC PROVISIONS

To protect public health and promote good practices, these restrictions are placed for the proper
operation of recycled water systems. The District applies the following restrictions:

4.7.1 Runoff Conditions. Direct or indirect runoff of recycled water outside of the approved
use area is prohibited.

4.7.2 Ponding Conditions. Direct or indirect ponding of standing water for a period of more
than 60 minutes is prohibited.

4.7.3 Overspray Conditions. Overspray of recycled water is prohibited, except to the extent
allowed under the District's RWQCB, Order No. 97-06.

4.7.4 Unapproved Uses. Use of recycled water for any purpose other than those explicitly
approved in the User Agreement issued by the District, is prohibited.

4.7.5 Reuse/Disposal in Unapproved Areas. Reuse or disposal of recycled water for any
purpose, including approved uses, in areas other than those explicitly approved in the User
Agreement issued by the District, is prohibited.

4.7.6 Cross-Connection. Cross-connections are not permitted except as indicated in Section


4.3 above.

4.7.7 Hose Bibs. Hose bibs on recycled water systems are prohibited. Use quick couplers for
hose connections.

4.7.8 Food Establishments/Public Facilities. In order to prevent food from being exposed to
spray from irrigation systems recycled water irrigation systems shall not be operated during
periods of food preparation, consumption or clean up.

4.8 IRRIGATION APPLICATION RATE AND PRACTICE

Specify the type of sprinkler, placement of sprinklers,


type of soil and type of plants that will be served by
the recycled water irrigation system. Every step must
be taken to minimize runoff and ponding.

4.8.1 Runoff. Use recycled water at a rate that is


compatible with the infiltration rate of the soil. The
irrigation system shall not be allowed to operate for a
time longer than the landscape's water requirement.

4.8.2 Irrigation Period. To the extent possible, operate the irrigation system during periods of
minimal public use of the approved area. Such periods of operation shall remain within any
general period of recycled water irrigation operation specified by the District. Recycled water
shall be applied when the grounds have had the maximum opportunity to dry before public use,
unless provisions are taken to exclude the public from areas during irrigation and while the
areas are drying.

Adjust spray heads to eliminate overspray in areas not under the control of the user and
minimize overspray onto areas under the control of the user.

10
Section 4-B
Page 81
4.9 EQUIPMENT AND FACILITIES

Any equipment or facilities involving recycled water such as tanks, temporary piping or valves,
as well as portable pumps shall be cleaned and disinfected before removal from the approved
use area. This disinfection and cleaning protects public health in the event of any subsequent
use as approved by the District. The disinfection process shall be performed in the presence of
the District’s Recycled Water Coordinator.

SECTION FIVE

SYSTEM MANAGEMENT

Compliance with the District regulations involves careful management of quality control, use
control, operation and maintenance control, cross-connection prevention. These practices
assure against violation of the District’s requirements.

5.1 QUALITY CONTROL

All recycled water delivered to users from District


facilities conforms to the requirements
established by EHS, RWQCB, and other
regulatory agencies. In the event that unsuitable
water is distributed through the recycled water
system, users will be notified by the District of
specific interim requirements for recycled water
use.

5.2 CONTROL OF ON-SITE USE

5.2.1 On-site Use Requirements. Once a User Agreement has been executed and
authorization has been granted by the District, the recycled water will be provided for the
intended uses.

5.2.2 User Supervisor. Provide the District with the name, email, cell number, office phone
and address of a user supervisor and/or designated representative for consideration. This
recommendation is subject to District approval. The user is responsible for notifying the District
of changes regarding the user supervisor position.

The user supervisor is responsible for the entire system and all recycled water use. This
includes installation, operation and maintenance of pipelines and cross-connection equipment.

5.2.3 Authorized Uses for Recycled Water. Recycled water uses may include, but are not
limited to, landscape irrigation and construction water purposes. The District, EHS, RWQCB,
and other concerned regulatory agencies will consider other uses, which are not included, for
approval. The District will determine whether it is necessary or desirable to furnish recycled
water for a specific use.

The specific use must be in accordance with the standards of treatment and water quality
regulations contained in Title 22 of the California Code of Regulations. The District may provide
specific requirements as conditions prior to approving any such uses, and/or require specific
prior approval from EHS, RWQCB, and other concerned regulatory agencies.

11
Section 4-B
Page 82
5.2.4 Responsibility for Maintenance. The user is
responsible for maintaining all on-site facilities
(downstream of the user's service meter). Unless
otherwise specified, all on-site facilities are under the
ownership of parties other than the District.

5.3 FACILITIES OPERATION

5.3.1 On-site Facilities - General. The user is


responsible for the operation and surveillance of on-site domestic water distribution and
recycled water distribution facilities to avoid cross-connections.

5.3.2 District Recycled Water Coordinator. The District is responsible for the operation of the
off-site distribution system, for the surveillance of all users and for the determination of water
quality as it relates to compliance with requirements of EHS, RWQCB and other concerned
regulatory agencies.

The District Recycled Water Coordinator is the primary contact person for the District in all
matters between the user and the District and between the District and the EHS, RWQCB, and
other regulatory agencies concerning the operation of the recycled water system.

5.3.3 User Supervisor. The operation and surveillance of all on-site recycled water system
facilities is under the management of the user supervisor designated by the user and approved
by the District. The District requires that the user supervisor receive instruction in recycled
water use, which will be provided or approved by the District.

The user supervisor needs to address the following responsibilities:

• Make sure that all operations personnel are trained in and familiarized with the proper recycled
water use

• Provide operations personnel with maintenance instructions, controller charts and record
drawings to insure proper operation in accordance with the onsite facilities design

• Prepare and submit required record drawings to the District

• Notify the District of updates or changes to the on-site facilities

• Operate and control the system to prevent direct human consumption of recycled water and to
control and limit runoff

• Report any and all failures in the recycled water system that causes an unauthorized discharge
of recycled water to the District (see Section 1.2.1c)

• Comply with all applicable Federal, State and local statutes, ordinances, regulations, contracts
and requirements prescribed by the District. In the event of violation, any charges and penalties
may be applied and collected by the District

• Install and maintain signs at all facilities

Please note that significant updates and changes may require the submittal of an
application for water service with Goleta Water District. Significant changes do not
include routine maintenance.

12
Section 4-B
Page 83
5.4 RECYCLED WATER SYSTEMS

The District monitors and inspects the entire recycled water


system, including both on-site and off-site facilities, at the
time of construction, annually and when necessary. The
District conducts system-monitoring programs, maintains all
off-site systems, and provides reports as requested by ERS,
RWQCB, and other regulatory agencies. The District, in
monitoring, record keeping and providing reports, has the
right to enter upon the user's premises during working hours.
The purpose of inspecting on-site recycled water facilities and
areas of recycled water use is to assist the user in complying
with requirements.

5.5 VIOLATIONS

5.5.1 Determination. The District reserves the right to determine whether a violation of the
guidelines has resulted from any action or occurrence, which is the responsibility of a user.
Insofar as a violation of these guidelines constitutes a violation of any EHS, RWQCB, or other
concerned regulatory agency requirement, the District will make its determination on behalf of
the concerned regulatory agency. If a violation is verified, the District will notify the user to
confirm that whatever caused the violation is corrected.

5.5.2 Specific Violations. Specific violations include those causing noncompliance with any of
the specific prohibitions as listed in the User Agreement issued by the District. However, by
definition, noncompliance with any condition or guideline of EHS, RWQCB, and other regulatory
agencies, whether willfully or by accident constitutes a violation.

5.5.3 Notification. The user is responsible for notifying the District Recycled Water
Coordinator of all failures in a recycled water system or violations of applicable regulations.

Notification of failures and violations shall be made as soon as possible or, in any event, no later
than 8:00 AM on the next regular working day following the occurrence. Such notification shall
be made by e-mail and/or telephone to the District Recycled Water Coordinator.

5.5.4 Corrective Action. If the District Recycled Water Coordinator’s investigation determines
a violation, it is the responsibility of the user to correct the conditions, which caused the
violation. The user shall develop a timetable for completing corrections for approval by the
Recycled Water Coordinator. Corrections may involve human factors, such as additional
training or procedures modifications, as well as physical alterations to the system.

If corrective actions are required, the user will provide the District Recycled Water Coordinator a
written statement describing the violation or violations, summarizing the corrective actions and a
timetable for completing the correction. Until the corrections are completed and approved by
the District, the use of recycled water shall only continue to the extent permitted by the District,
EHS, RWQCB and other regulatory agencies.

A written log of all system failures, violations and corrective actions is to be prepared and
updated for the District to review.

5.5.5 Appeal. The user may appeal in writing the violation determined by the District Recycled
Water Coordinator to the District General Manager. State the conditions that the District
Recycled Water Coordinator has determined to be a violation and the opinion to the contrary.

13
Section 4-B
Page 84
SECTION 6

SPECIFIC REQUIREMENTS FROM THE RWQCB WATER RECLAMATION


REQUIREMENTS, ORDER NO. 97-06

A complete copy of the RWQCB, Order No. 97-06 is


included in the following Appendix. The Executive Officer
of the RWQCB recommends that the user supervisor at
each site take particular note of the following two
requirements in that Order:

1. Do not use recycled water for irrigation during


periods of extended rainfall and/or runoff.

2. Use clear signage in visible areas to inform the


public that recycled water is being stored or used.

14
Section 4-B
Page 85
APPENDICES

A. California Regional Water Quality Control Board Water Reclamation Requirements,


Order No. 97-06 (ATTACHED)

B. Title 22 California Code of Regulations (ATTACHED)

C. Goleta Water District Code, Title 7 Recycled Water Rules and Regulations (ATTACHED)

15
Section 4-B
Page 86
Frequently Asked Questions

Is recycled water safe?

Water recycling is a safe way to preserve our natural water resource. In addition, recycled water
projects are designed and operated to protect public health. Careful monitoring by responsible
local health authorities and water quality control agencies also ensures a highly treated, filtered
and disinfected product that meets the State Department of Health Services criteria.

Does recycled water smell or look different than tap water?

Recycled water is the end product of a three-stage treatment process in which municipal
wastewater is settled out, biologically oxidized, clarified, chemically coagulated, filtered and
disinfected. The resulting water is clear and colorless. Although recycled water may have a
slight chlorine smell, it is visibly indistinguishable from tap water to the human eye. 
 
 Beyond
what the senses can perceive, recycled water does not contain any constituents that exceed
federal and state drinking water standards for heavy metals, minerals, trace organic
compounds, pesticides and microorganisms. However, this process does not treat recycled
water to drinking water standards.

Are there any health or water quality laws that apply to recycled water?

There are very stringent water quality laws that apply to recycled water. The State Department
of Health Services standards for recycled water are referred to as "Title 22." These standards
are incorporated in Title 22, Chapter 3, Division 4 of the California Code of Regulations, with
stipulations applying to various types of reuse, and levels of required treatment.

What uses does California Code of Regulations Title 22 allow?

Title 22 allows for many uses of recycle water. The uses for recycled water include irrigation of
food crops, parks, playgrounds, school yards, residential landscaping, cemeteries, freeway
landscaping, golf courses, ornamental nurseries, pasture for animals, orchards, and vineyards.
In addition, recycled water can be used for fishing or boating recreational impoundments, fish
hatcheries, cooling towers and decorative fountains. Other allowable uses include flushing
toilets and urinals, industrial process water, commercial laundries, making artificial snow, soil
compaction, mixing concrete and flushing sanitary sewers.

Will constituents in the water, such as salts, harm landscaping?

There are various constituents in recycled water that exceed those found in the drinking water
supply, including total dissolved solids (or salts). For example, although recycled water contains
a slightly higher salt content, turf grass irrigated with recycled water will continue to flourish.
With proper drainage and good management, landscape irrigated with recycled water will
continue to thrive. Moreover, there are some constituents, such as nitrogen and phosphorus
found in recycled water. These constituents are beneficial for plant growth, and will serve as an
additional "fertilizing" source.

16
Section 4-B
Page 87
EXHIBIT L

GOLETA WATER DISTRICT RULES AND REGULATIONS


AND STANDARD SPECIFICATIONS FOR RECYCLED WATER

Section 4-B
Page 88
Section 4-B
Page 89
Section 4-B
Page 90
Section 4-B
Page 91
Section 4-B
Page 92
Section 4-B
Page 93
Section 4-B
Page 94
Section 4-B
Page 95
Section 4-B
Page 96
Section 4-B
Page 97
Section 4-B
Page 98
Section 4-B
Page 99
Section 4-B
Page 100
Section 4-B
Page 101
Section 4-B
Page 102
Section 4-B
Page 103
Section 4-B
Page 104
Section 4-B
Page 105
Section 4-B
Page 106
Section 4-B
Page 107
Section 4-B
Page 108
EXHIBIT M

GOLETA SANITARY DISTRICT TREATMENT SCHEMATIC TRAIN

Section 4-B
Page 109
Sodium
Bisulfite

Figure 1-2. Treatment Process Flow Diagram


Section 4-B
1-5 Page 110
as sodium hypochlorite is added to
maintain disinfection in the recycled
water storage tanks and distribution
system.

Figure 1-2. (continued) Treatment Process Flow Diagram


Section 4-B
1-6
Page 111
EXHIBIT N

2012 GOLETA SANITARY DISTRICT PRETREATMENT ANNUAL REPORT

http://www.goletasanitary.org/images/Scanned2012PretreatmentReport.pdf

Hard Copy Available Upon Request

Section 4-B
Page 112
EXHIBIT O

GOLETA WATER DISTRICT AND GOLETA SANITARY DISTRICT


ENGINEERING REPORT FOR WATER RECLAMATION

Hard Copy Available Upon Request

Section 4-B
Page 113
MONTECITO WATER DISTRICT
BOARD MEMORANDUM

SECTION: 4-C

DATE: OCTOBER 19, 2016

TO: BOARD OF DIRECTORS

FROM: GENERAL MANAGER AND LEGAL COUNSEL

SUBJECT: SENATE BILL 814

RECOMMENDATION:
For information only.

DISCUSSION:
Senate Bill 814, approved by Governor Brown on August 29, 2016, requires that water
agencies establish an excessive water use ordinance which includes a procedure to
identify and address excessive water use by single and multi-family residential
customers and allows for the issuance of fines or penalties for excessive water use.
Attached is a copy of Senate Bill 814.
The District’s special legal counsel has reviewed both Senate Bill 814 and the District’s
existing water shortage emergency ordinances and has concluded that District
Ordinance 94 complies with Senate Bill 814. A copy of legal counsel’s opinion is
attached.

Section 4-C
Page 1
Section 4-C
Page 2
Section 4-C
Page 3
Section 4-C
Page 4
 
300 S. Grand Avenue, Suite 2700   Michael G. Colantuono
Los Angeles,
  CA 90071-3137 (530) 432-7357
Voice (213) 542-5700 MColantuono@chwlaw.us
Fax (213) 542-5710

MEMORANDUM
 
 
TO:  Edward Lyons, Business Manager  FILE NO:  43024.0002 
Montecito Water District 
FROM:  Michael G. Colantuono, Esq.  DATE:  September __, 2016 
Amy C. Sparrow, Esq. 
RE:  SB 814 

Introduction

As you asked, we write to provide our opinion regarding compliance with 
SB 814, which was approved by Governor Brown last month and becomes effective in 
January of 2017. This new legislation requires water agencies to establish a method to 
identify and discourage excess residential water use when the Governor has declared a 
state of emergency due to drought conditions, or the agency itself has taken action in 
response to a local water shortage. 

As discussed below, Ordinance 94, which was adopted in March of 2015, satisfies 
these requirements.  

Analysis  
SB 814 adds sections 365 through 367 to the Water Code, requiring “urban retail 
water suppliers” such as the District to establish a method to identify and discourage 
excessive water use when one of the following apply: 

• The Governor has proclaimed a state of emergency based on statewide drought


conditions;
• The water supplier has moved to a stage under its Water Code section 10632
water shortage contingency plan that requires mandatory reduction in water use;1
• The Governor has proclaimed a state of emergency based on local drought
conditions that affect the water supplier.

                                                 
1 Water Code section 10632 provides elements of the urban water shortage contingency analysis that must 
be included in the urban water management plan required under Water Code sections 10620 et seq. 
169359.1
Section 4-C
Page 5
 
Gary Geuss, Riverside City Attorney 
March 16, 2016 
Page 2 
 
 
(Wat. Code § 367, subd. (a).) 

Water Code section 366 provides the following options for a water supplier to 
identify and discourage excess water use under these circumstances: 

• The supplier may establish a rate structure, subject to constitutional and statutory
limitations, that includes block tiers, water budgets or rate surcharges for
excessive water consumption by a residential customer;
• The supplier may establish an excessive water use ordinance that identifies and
addresses excessive residential water use, with penalties that may include a fine
of up to $500 per hcf for excessive use. Under this option, an appeals process
must be established for the customer to contest imposition of the penalty.

Ordinance 94 satisfies the second option by identifying excessive use on the basis of 
water allocation, imposing penalties for use in excess of allocation, and providing an 
appeals process. (Ord. 94, § 4, § 8, § 10.) 

After the current drought conditions have abated, the District will presumably 
declare that the water shortage emergency has ended and discontinue enforcement of 
Ordinance 94, either through repeal or amendment to permit its application only during 
times of water shortage emergency.  If the ordinance is eventually repealed, the District 
will be required to adopt similar legislation during future water shortage emergencies, 
as required under SB 814. 

Conclusion
As discussed above, we conclude that Ordinance 94 complies with SB 814.  

Thank you for the opportunity to assist. If we can provide any further assistance, 
please contact Michael at (530) 432‐7357 or MColantuono@chwlaw.us or Amy at 
(213) 542‐5700 or ASparrow@chwlaw.us.  

169359.1
Section 4-C
Page 6
MONTECITO WATER DISTRICT
WATER WORKS OPERATION REPORT
SEPTEMBER 2016

Jameson Lake Cachuma Lake


Full Reservoir Elevation 2223.87 750
Full Reservoir Storage (acre feet) 5,114 184,121
Elevation (feet) Aug 31, 2016 2164.54 647.31
Elevation (feet) Sept 30, 2016 2163.80 646.68
Elevation Change for Month (feet) -0.74 -0.63
Full Reservoir Elevation Difference (feet) -60.07 -103.32
Storage (acre feet) Aug 31, 2016 559 14,630
Storage (acre feet) Sept 30, 2016 533 14,222
Storage Change for Month (acre feet) -26 -408
Full Reservoir Storage Difference (acre feet) -4,581 -169,899
Alder Creek Inflow (acre feet) 0
Jameson Lake Inflow (acre feet) 0

WATER PRODUCTION
District Surface Sources (af)
Jameson Fox Doulton Arch Meter Weirs 1 & 2
12.02 0.00 12.49 0.00 0.00
Total District Surface Production (1): 24.51

Cachuma Turnouts (af) (Cachuma & State Water)


Barker Pass Office E Valley Sheffield Lambert Rd
77.84 4.86 201.48 11.44 1.68
Toro Canyon Ortega Control (Lat 1) Ortega Pump Asegra Road (2) County Yard
1.87 3.11 12.42 6.90 0.00
Total SCC Meters: 321.60
Cachuma Production: 81.61
State Water Credit (Warren Act Contract): 240.00
State Water Unaccounted: 4
Evaporation: 85
City of Santa Barbara Transfer: 297.44
Unaccounted Reconciliation (Est SCC System Losses): 10
Cachuma Remaining Balance: 377
State Water Stored in Cachuma: 0

District Wells (af)


Amapola Ennisbrook 2 Ennisbrook 5 Paden 2 L.E. II
12.28 0.66 4.29 15.16 0.00
Las Fuentes (2) Edgewood Well 3 EVR 3 EVR 4 EVR 6 Valley Club
1.40 6.46 0.68 0.00 0.00 1.91
Total Wells: 42.84
Total District Water Production: 388.95

Section 4-D
Page 1
MONTECITO WATER DISTRICT
WATER WORKS OPERATION REPORT
SEPTEMBER 2016
WEATHER

Rainfall (inches) Office Doulton Juncal


September 2016 0.00 0.00 0.00
September 2015 0.19 0.31 0.14
Historical Monthly Average 0.21 0.33 0.28
Season to Date 0.00 0.00 0.00
Last Year Season to Date 0.56 0.59 1.53
Historical Season Average to Date 0.30 0.45 0.33

Jameson Lake Air Temperature Averages: Low High


48° 89°

WATER PRODUCTION vs. METERED USE

Water Production (af): 389.0 Meter Use (af): 362.5


No. of Days in Production Period: 30 City of SB Intertie (af): 0.0
Average Daily Production (af): 13.0 Adjusted Meter Use (af): 362.5
Month's Unaccounted Water (af): 38.1 No. of Days in Demand Period: 31
Month's Percentage Loss: 10% Average Daily Demand (af): 11.7

Non-Revenue (Leakage, Flushing etc (af): 0.0

METER SALES

Meters Removed Per Customer Request: 0


New Installations: 0
Total Meters: 4,600

Section 4-D
Page 2
MONTECITO WATER DISTRICT
WATER SALES ANALYSIS
FOR FISCAL YEAR 2016/17
ACTUALS THROUGH SEPTEMBER 2016 (*)

% 2015/16 2016/17 2016/17 YTD VARIANCE YTD VARIANCE


MONTH SALES ACTUAL SALES (*) BUDGET SALES SALES (*) PRIOR YEAR VS. CURRENT YEAR BUDGET VS. ACTUAL
BREAKDOWN AF $ AF $ AF SALES AF % $ % AF % $ %
JUL 10.4% 353.9 780,608 354.0 $838,380 377.4 $897,508 23.5 6.6% $116,900 15.0% 23.0 6.5% $59,128 7.1%
AUG 11.0% 371.4 826,468 371.0 $887,610 378.7 $905,479 7.3 2.0% $79,011 9.6% 8.0 2.2% $17,869 2.0%
SEP 10.9% 373.7 823,102 374.0 $884,020 362.5 $865,799 (11.2) (3.0%) $42,697 5.2% (11.0) (2.9%) -$18,221 (2.1%)
OCT 10.1% 342.1 759,269 342.0 $815,470 342.0 $815,470 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
NOV 8.6% 293.7 649,569 294.0 $697,630 294.0 $697,630 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
DEC 8.6% 289.2 649,925 289.0 $698,020 289.0 $698,020 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
JAN 4.1% 139.6 306,436 140.0 $329,110 140.0 $329,110 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
FEB 5.1% 178.1 380,336 178.0 $408,490 178.0 $408,490 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
MAR 4.9% 172.3 368,070 172.0 $395,310 172.0 $395,310 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
APR 8.0% 273.5 603,940 274.0 $648,630 274.0 $648,630 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
MAY 9.4% 308.5 707,957 300.0 $759,470 300.0 $759,470 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
JUN 9.0% 343.6 756,706 311.0 $726,050 311.0 $726,050 0.0 0.0% $0 0.0% 0.0 0.0% $0 0.0%
TOTAL 100.0% 3,440.0 $7,612,384 3,399.0 $8,088,190 3,419.0 $8,146,967 19.6 1.8% $238,609 9.8% 20.0 1.8% $58,776 2.3%

YTD ACTUAL WATER SALES COMPARISON


ACTUALS THROUGH SEPTEMBER 2016 (*)

2015/16 2016/17 2016/17 YTD VARIANCE YTD VARIANCE


ACTUAL SALES (YTD) BUDGET SALES (YTD) ACTUAL SALES (YTD) PRIOR YEAR VS. CURRENT YEAR BUDGET VS. ACTUAL
AF $ AF $ AF $ AF % $ % AF % $ %
Cummulative (YTD) 1,099.0 2,430,178 1,099.0 $2,610,010 1,118.6 $2,668,786 19.6 1.8% $238,609 9.8% 20.0 1.8% $58,776 2.3%

QUARTERLY COMPARISON - ACTUALS THROUGH SEPTEMBER 2016 (*)


2015/16 2016/17 2016/17 VARIANCE VARIANCE
ACTUAL SALES BUDGET SALES ACTUAL SALES PRIOR YEAR VS. CURRENT YEAR BUDGET VS. ACTUAL
AF $ AF $ AF $ AF % $ % AF % $ %
Jul-Sep (*) 1,099.0 $2,430,178 1,099.0 $2,610,010 1,118.6 $2,668,786 19.6 1.8% $238,609 9.8% 19.6 1.8% $58,776 2.3%
Oct-Dec 924.9 2,058,762 925.0 2,211,120 925.0 $2,211,120 0.0 0.0% 0 0.0% 0.0 0.0% 0 0.0%
Jan-Mar 490.1 1,054,841 490.0 1,132,910 490.0 $1,132,910 0.0 0.0% 0 0.0% 0.0 0.0% 0 0.0%
Apr-Jun 925.7 2,068,603 885.0 2,134,150 885.0 $2,134,150 0.0 0.0% 0 0.0% 0.0 0.0% 0 0.0%
Total 3,439.7 $7,612,383 3,399.0 $8,088,190 3,418.6 $8,146,966 19.6 1.8% $238,609 3.1% 19.6 0.6% $58,776 0.7%

(*) Sales figures reported are as of the close of billing for that period and do not reflect final financial amounts. Budgeted amounts (Oct'16 - Jul'17) are used prior to actual figures being
available for comparative purposes

SALES 2016-17 - SEPT


Section 5-A
Page 1
435.6 HCF/AF

MONTECITO WATER DISTRICT


METERED WATER SALES - ACRE FEET
FY 1996/97 THROUGH AUGUST 2016

MONTH JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YR TOTAL
1996-97 541.74 608.10 490.40 441.30 240.80 167.50 146.40 253.70 405.00 527.50 616.60 535.40 4974.44
1997-98 627.20 629.90 624.60 590.00 235.40 179.90 159.40 128.70 186.06 242.03 290.00 415.40 4308.59
1998-99 567.80 566.30 447.60 548.00 352.67 297.30 279.40 202.90 252.80 310.00 440.10 547.97 4812.84
1999-00 656.44 621.80 542.90 541.00 341.90 501.30 285.90 146.30 288.20 329.59 529.63 556.20 5341.16
2000-01 574.40 719.30 568.50 368.20 381.30 364.00 224.90 162.00 257.00 318.60 438.00 534.20 4910.40
2001-02 571.70 631.20 501.40 436.70 214.10 191.70 235.20 331.20 378.90 499.80 655.70 586.40 5234.00
2002-03 714.96 691.72 572.91 543.09 316.16 228.56 323.44 236.50 312.70 372.00 423.10 458.72 5193.86
2003-04 707.18 677.68 675.26 528.96 286.21 320.92 275.41 267.97 398.04 624.78 623.60 668.60 6054.61
2004-05 693.71 763.52 753.31 408.50 367.50 301.60 158.00 195.30 189.00 516.50 493.40 607.50 5447.84
2005-06 659.00 695.60 656.00 413.00 372.00 294.80 265.08 345.20 180.50 203.40 357.30 623.30 5065.18
2006-07 681.40 707.50 606.70 540.80 530.70 359.80 415.50 201.10 462.90 469.10 703.00 655.00 6333.50
2007-08 739.40 832.60 642.00 594.20 509.30 328.80 188.00 212.00 474.10 629.00 694.00 675.00 6518.40
2008-09 798.00 724.64 633.87 674.67 384.67 225.41 325.87 159.67 370.15 504.98 596.33 566.11 5964.37
2009/10 742.30 631.10 657.00 458.30 445.12 227.74 190.35 139.34 294.99 348.93 571.75 538.61 5245.53
2010/11 538.41 727.65 548.36 380.37 305.68 190.81 200.96 261.47 203.60 366.94 544.19 447.14 4715.58
2011/12 617.27 555.95 610.01 446.47 294.66 316.66 337.17 394.72 371.30 271.33 504.24 582.64 5302.42
2012/13 638.77 712.13 681.09 650.89 415.54 149.43 240.86 311.99 388.90 536.67 601.32 617.82 5945.40
2013/14 697.66 730.90 684.30 662.58 496.06 378.50 530.73 357.85 206.59 305.52 373.14 352.27 5776.10
2014/15 362.48 360.73 368.36 345.56 233.41 166.23 158.11 188.53 227.57 308.96 300.16 311.07 3331.17
2015/16 353.90 371.40 373.74 342.06 293.71 289.17 139.62 178.14 172.29 273.55 308.50 343.65 3,439.73
2016/17 377.38 378.68 362.54

AVERAGE 612.43 635.16 571.47 495.73 350.84 274.01 254.01 233.73 301.03 397.96 503.20 531.15 5195.76
MAXIMUM 798.00 832.60 753.31 674.67 530.70 501.30 530.73 394.72 474.10 629.00 703.00 675.00 6518.40
MINIMUM 353.90 360.73 362.54 342.06 214.10 149.43 139.62 128.70 172.29 203.40 290.00 311.07 3331.17
16/17 % VS AVERAGE 62% 60% 63% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
16/17 % VS MAXIMUM 47% 45% 48% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Total METER Connections = 4,601

SALES 2016-17 - SEPT Section 5-A


Page 2
MONTECITO WATER DISTRICT
STATEMENT OF REVENUE AND EXPENDITURES - UNAUDITED
AUGUST 2016
FOOTNOTE

CURRENT BUDGET BUDGET CURRENT BUDGET BUDGET


MONTH MONTH VARIANCE YEAR TO DATE YEAR TO DATE VARIANCE
AUGUST 2016 AUGUST 2016 $ % 16/17 16/17 $ %
REVENUE
WATER SALES (1) $ 897,500 $ 887,610 $ 9,890 1% $ 1,795,900 $ 1,725,990 $ 69,910 4%
SERVICE CHARGES 355,910 355,480 430 0% 711,840 710,960 880 0%
PRIVATE FIRE HYDRANT 5,420 5,420 0 0% 10,850 10,840 10 0%
LATE CHARGES 5,030 4,160 870 21% 10,260 8,320 1,940 23%
ORDINANCE 93/94 PENALTIES 463,330 415,110 48,220 12% 997,430 743,140 254,290 34%
WSE SURCHARGE 542,560 541,550 1,010 0% 1,087,270 1,057,150 30,120 3%
SERVICE CONNECTION FEES 6,060 2,090 3,970 190% 6,060 4,180 1,880 45%
CAPITAL COST RECOVERY FEES - - 0 0% - - 0 0%
WATER AVAILABILITY CHARGE - - - 0% - - - 0%
INTEREST REVENUE - GENERAL 5,090 3,920 1,170 30% 9,350 7,840 1,510 19%
OTHER REVENUE 6,410 7,200 (790) (11%) 11,540 14,400 (2,860) (20%)
REIMBURSEMENTS 3,500 1,850 1,650 89% 7,040 3,700 3,340 90%
SUBTOTAL $ 2,290,810 $ 2,224,390 $ 66,420 3% $ 4,647,540 $ 4,286,520 $ 361,020 8%

EXPENDITURES
JPA EXPENSES
US BUREAU OF RECLAMATION (USBR) $ - $ - $ - 0% $ - $ - $ - 0%
CACHUMA OPERATIONS & MAINT BOARD (COMB) (192,640) (160,730) (31,910) (20%) (192,640) (160,730) (31,910) (20%) (1)
CACHUMA OPERATIONS & RELEASE BOARD (CCRB) - - - 0% (24,470) (34,700) 10,230 29%
CATER WATER TREATMENT PLANT - - - 0% - - - 0%
STATE WATER PROJECT (FIXED) (421,290) (421,000) (290) (0%) (842,590) (842,000) (590) (0%)
STATE WATER PROJECT (VARIABLE) (114,980) (115,000) 20 0% (229,950) (230,000) 50 0%
SUBTOTAL $ (728,910) $ (696,730) $ (32,180) (5%) $ (1,289,650) $ (1,267,430) $ (22,220) (2%)

MWD EXPENSES
JAMESON LAKE $ (7,150) $ (11,240) $ 4,090 36% $ (17,190) $ (22,480) $ 5,290 24%
PUMPING O&M (73,050) (64,580) (8,470) (13%) (80,530) (78,570) (1,960) (2%)
TREATMENT O&M (58,520) (60,650) 2,130 4% (102,070) (123,830) 21,760 18%
TRANSMISSION & DISTRIBUTION (55,150) (61,980) 6,830 11% (101,700) (123,960) 22,260 18%
VALVES & REGULATORS (7,530) (12,290) 4,760 39% (15,430) (24,580) 9,150 37%
FIRE HYDRANTS - (910) 910 100% (210) (1,820) 1,610 88%
METERS (13,090) (11,560) (1,530) (13%) (27,610) (23,120) (4,490) (19%)
ROADS (660) (4,310) 3,650 85% (1,010) (8,620) 7,610 88%
RESERVOIRS (3,010) (2,850) (160) (6%) (5,530) (5,700) 170 3%
WELLS (49,520) (26,920) (22,600) (84%) (54,630) (36,840) (17,790) (48%) (2)
METER READ & CUSTOMER SRV (34,680) (29,570) (5,110) (17%) (61,010) (59,140) (1,870) (3%)
FLEET & EQUIPMENT (15,140) (9,830) (5,310) (54%) (22,220) (19,660) (2,560) (13%)
WATER RESOURCE MNGMT (32,620) (30,230) (2,390) (8%) (45,770) (77,050) 31,280 41%
LEGAL (4,980) (8,320) 3,340 40% (8,850) (16,640) 7,790 47%
LEGAL SPECIAL (5,390) (11,760) 6,370 54% (5,390) (11,760) 6,370 54%
ADMINISTRATIVE & GENERAL (76,740) (94,060) 17,320 18% (171,630) (194,300) 22,670 12%
SUBTOTAL $ (437,230) $ (441,060) $ 3,830 1% $ (720,780) $ (828,070) $ 107,290 13%

16-17 REV-EXP AUGUST 2016 v3


Section 5-A
Page 3
MONTECITO WATER DISTRICT
STATEMENT OF REVENUE AND EXPENDITURES - UNAUDITED
AUGUST 2016
FOOTNOTE

CURRENT BUDGET BUDGET CURRENT BUDGET BUDGET


MONTH MONTH VARIANCE YEAR TO DATE YEAR TO DATE VARIANCE
AUGUST 2016 AUGUST 2016 $ % 16/17 16/17 $ %
EXPENDITURES CONT'D

DROUGHT RELATED EXPENSES


CONSERVATION PROGRAM $ (8,710) $ (5,160) $ (3,550) (69%) $ (11,300) $ (10,320) $ (980) (9%)
LEGAL (9,120) (10,830) 1,710 16% (11,710) (21,660) 9,950 46%
ALLOCATION PROGRAM COSTS (11,870) (9,570) (2,300) (24%) (20,090) (19,140) (950) (5%)
PUBLIC OUTREACH (3,630) (12,500) 8,870 71% (3,930) (25,000) 21,070 84%
COMB EMERGENCY PUMPING FACILITY (25,750) (18,680) (7,070) (38%) (25,750) (18,680) (7,070) (38%) (1)
SUPPLEMENTAL WATER PURCHASE - - - 0% - - - 0%
EMERGENCY DESAL WATER SUPPLY - SB (14,290) (13,330) (960) (7%) (14,290) (26,660) 12,370 46%
SUBTOTAL $ (73,370) $ (70,070) $ (3,300) (5%) $ (87,070) $ (121,460) $ 34,390 28%

TOTAL OPERATING EXPENSE $ (1,239,510) $ (1,207,860) $ (31,650) (3%) $ (2,097,500) $ (2,216,960) $ 119,460 5%

OPERATING SURPLUS/(DEFICIT) $ 1,051,300 $ 1,016,530 $ 2,067,830 203% $ 2,550,040 $ 2,069,560 $ 480,480 23%

DEBT SERVICE
2004 DWR ORTEGA LOAN $ - $ - $ - 0% $ - $ - $ - 0%
2010A BONDS - REV REFUNDING COPS - - - 0% - - - 0%
SUBTOTAL $ - $ - $ - 0% $ - $ - $ - 0%

NET SURPLUS/(DEFICIT) BEFORE CAPEX $ 1,051,300 $ 1,016,530 $ 34,770 3% $ 2,550,040 $ 2,069,560 $ 480,480 23%

CAPITAL EXPENDITURES
EQUIPMENT $ (2,630) $ (42,920) $ 40,290 94% $ (2,630) $ (45,840) $ 43,210 94%
MWD SYSTEM PROJECTS (49,630) (30,000) (19,630) (65%) (63,300) (45,000) (18,300) (41%) (3)
SUBTOTAL $ (52,260) $ (72,920) $ 20,660 28% $ (65,930) $ (90,840) $ 24,910 27%

OTHER JPA COMMITMENTS


CATER CAPITAL PROGRAM $ - $ - $ - 0% $ - $ - $ - 0%
CATER OZONE PROJECT - PRIN/INT - - - 0% - - - N/A
2003 DWR CATER LOAN - PRIN/INT - - - 0% - - - 0%
SUBTOTAL $ - $ - $ - 0% $ - $ - $ - 0%

TOTAL MWD CAPEX & OTHER JPA COMMITMENTS $ (52,260) $ (72,920) $ 20,660 28% $ (65,930) $ (90,840) $ 24,910 27%

NET SURPLUS/(DEFICIT) $ 999,040 $ 943,610 $ 55,430 6% $ 2,484,110 $ 1,978,720 $ 505,390 26%

FOOTNOTE
(1) JPA EXPENSES / CACHUMA OPERATIONS AND MAINT BOARD (COMB) - MWD FY 16/17 Budget was based on COMB Preliminary Budget dated 06/15/16. Final COMB Budget was approved after MWD
(2) MWD EXPENSES / WELLS - Includes repairs to Ennisbrook #2 Well related to Southern California Power Surge. Insurance claim to be submitted to ACWA/JPIA
(2) CAPITAL EXPENDITURES / MWD SYSTEM PROJECTS - Includes improvements to Romero Reservoir ($12k)

16-17 REV-EXP AUGUST 2016 v3


Section 5-A
Page 4
#

DASHBOARD REPORT MONTH ENDING 9/30/2016 (Select Date From Drop Down Arrow)

WATER SALES (AF)


#
#
MONTHLY WATER SALES (AF) #
CURRENT BUDGET VARIANCE #
Trailing Twelve Month (TTM) Water Sales by Month (AF)
CLASSIFICATION 2015/16 VS  FY 2014/15 
MONTH MONTH AF %
400
Single Family 253.5 255.6 (2.1) (0.8%) ‐1%
350
Multi Family 6.6 6.3 0.3 4.4% 4%
300
Agricultural 32.6 38.5 (5.9) (15.3%) ‐15%
250
Institutional 38.3 39.7 (1.4) (3.6%) ‐4%
200
Commercial 21.1 21.8 (0.7) (3.4%) ‐3% 150

Non-Potable 10.4 11.8 (1.3) (11.3%) ‐11% 100

Monthly Total 362.5 373.8 (11.2) (3.0%) ‐3% 50

# 0
Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16
Curr Yr Water Sales (AF) 342 294 289 140 178 172 274 309 344 377 379 363
FISCAL YEAR TO DATE WATER SALES (AF) # Prior Yr Water Sales (AF) 346 233 166 158 189 228 309 300 311 354 371 374

# % Change (1%) 26% 74% (12%) (6%) (24%) (11%) 3% 10% 7% 2% (3%)
CURRENT BUDGET VARIANCE
CLASSIFICATION YTD YTD AF % # 3%

Single Family 775.7 753.2 22.5 3.0% 4% Total Water Sales


Multi Family 18.7 18.0 0.7 4.0% Trailing Twelve Months (TTM)
Agricultural 96.6 112.4 (15.8) (14.0%) ‐1%
Institutional 122.7 115.6 7.1 6.1% 17% Sep‐16 (TTM)  =     3,459 AF
Commercial 65.6 66.2 (0.5) (0.8%) 2% Sep‐15 (TTM)  =     3,339 AF
Non-Potable 39.2 33.6 5.6 16.5% % Change =  3.6.%
Monthly Total 1,118.6 1,099.1 19.5 1.8%

Fiscal Year = July thru June #


###

1 AF = 435.6 HCF of Water 1 HCF = 748 Gallons of Water 1 AF = 325,851 Gallons of Water

Section 5-B
Page 1
DASHBOARD REPORT MONTH ENDING 9/30/2016 (Select Date From Drop Down Arrow)

WATER SALES ($)

MONTHLY WATER SALES ($)


CURRENT BUDGET VARIANCE
Water Sales by Classification
CLASSIFICATION
MONTH MONTH $ %
Single Family $ 642,000 $ 645,300 $ (3,300) (1%) ‐1% Commercial Non‐Potable
Institutional 6% 1%
Multi Family $ 15,600 $ 15,000 $ 600 4% 4% 12%
Agricultural $ 45,300 $ 53,100 $ (7,800) (15%) ‐15%
Agricultural
Institutional $ 100,300 $ 104,300 $ (4,000) (4%) 5%
‐4%
Commercial $ 56,200 $ 58,600 $ (2,400) (4%) ‐4%
Non-Potable $ 6,400 $ 7,700 $ (1,300) (17%) ‐17%
Monthly Total $ 865,800 $ 884,000 $ (18,200) (2%) ‐2% Multi Family 
Residential
2%
FISCAL YEAR TO DATE WATER SALES ($) Single Family 
CURRENT BUDGET VARIANCE Residential
CLASSIFICATION
YTD YTD $ % 74%
Single Family $ 1,969,000 $ 1,907,200 $ 61,800 3% 3%
Multi Family $ 44,200 $ 42,500 $ 1,700 4% 4%
Agricultural $ 134,300 $ 155,300 $ (21,000) (14%) ‐14%
Institutional $ 321,600 $ 303,800 $ 17,800 6% 6%
Commercial $ 175,900 $ 178,000 $ (2,100) (1%) ‐1%
Non-Potable $ 23,900 $ 23,200 $ 700 3% 3%
Monthly Total $ 2,668,900 $ 2,610,000 $ 58,900 2% 2%
Fiscal Year = July thru June

Section 5-B
Page 2
DASHBOARD REPORT MONTH ENDING 8/31/2016 (Select Date From Drop Down Arrow)

FINANCIAL INFORMATION

REVENUE AND EXPENDITURES - UNAUDITED CASH BALANCES

CURRENT BUDGET VARIANCE UNRESTRICTED - OPERATING $ 935,000


CATEGORY
(YTD) (YTD) $ % UNRESTRICTED - CCWA $ 167,000
WATER SALES $ 1,795,900 $ 1,725,990 $ 69,910 4% UNRESTRICTED - LAIF $ 10,425,000
WSE SURCHARGE $ 1,087,270 $ 1,057,150 $ 30,120 3% SUBTOTAL UNRESTRICTED CASH $ 11,527,000
ORDINANCE 94 PENALTIES $ 997,430 $ 743,140 $ 254,290 34% RESTRICTED CASH - 2010A COP $ 1,454,000
SERVICE CHARGES $ 711,840 $ 710,960 $ 880 0% RESTRICTED CASH - CCWA $ 1,419,000
WATER AVAILABILITY CHARGE $ - $ - $ - 0% RESTRICTED CASH - DWR / ORTEGA $ 590,000
FEES OTHERS $ 55,100 $ 49,280 $ 5,820 12% SUB TOTAL RESTRICTED CASH $ 3,463,000
TOTAL REVENUE $ 4,647,540 $ 4,286,520 $ 361,020 8% TOTAL UNRESTRICTED + RESTRICTED CASH $ 14,990,000
JPA OPERATING EXPENSES $ (1,289,650) $ (1,267,430) $ (22,220) (2%)
MWD OPERATING EXPENSES $ (720,780) $ (828,070) $ 107,290 13% PRORATED SWP FIXED OBLIGATION THRU AUG'16 $ 831,000
DROUGHT RELATED EXPENSES $ (87,070) $ (121,460) $ 34,390 28% (*) ANNUAL SWP PMT DUE IN JUN'17 $ 4,983,000
TOTAL EXPENDITURES $ (2,097,500) $ (2,216,960) $ 119,460 5%
OPERATING SURPLUS / (DEFICIT) $ 2,550,040 $ 2,069,560 $ 480,480 23%
OTHER EXPENSE / REVENUE $ - $ - $ - 0%
DEBT SERVICE $ - $ - $ - 0%
SURPLUS / (DEFICIT) BEFORE CAPEX $ 2,550,040 $ 2,069,560 $ 480,480 23%
MWD CAPITAL EXPENDITURES $ (65,930) $ (90,840) $ 24,910 27%
OTHER JPA COMMITMENTS $ - $ - $ - N/M
TOTAL SURPLUS / (DEFICIT) $ 2,484,110 $ 1,978,720 $ 505,390 26%

Section 5-B
Page 3
DASHBOARD REPORT MONTH ENDING 9/30/2016 (Select Date From Drop Down Arrow)
SFR CONSUMPTION TRENDS (*)

Monthly SFR Water Consumption vs Allocation (HCF) Monthly SFR Water Consumption by Tier (HCF)
 250,000  120,000

 100,000
 200,000

 80,000
 150,000
 60,000

 100,000  40,000

 20,000
 50,000

 ‐
 ‐ Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16
Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16
Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16
Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16 T4: 121+ HCF 800 700 2,800 3,400 4,000 7,200 5,900 5,100
ALLOC (HCF) 140,800 159,200 169,600 186,800 187,500 197,400 195,900 181,200 T3: 61‐120 HCF 1,200 1,200 3,800 5,200 6,400 8,100 8,300 7,400
ACTUAL (HCF) 58,200 56,200 85,200 94,500 104,900 113,000 113,900 110,500 T2: 25‐60 HCF 7,000 6,400 16,900 21,400 25,900 28,200 29,500 28,000
% CONSUMED 41% 35% 50% 51% 56% 57% 58% 61% T1: 0‐25 HCF 49,100 47,800 61,700 64,600 68,600 69,500 70,300 69,900

Accounts within Water Allocation Count % of Total # of SFR Accounts Using: Count % of Total
Total SFR Accounts Within Allocation 3,473 84% < 10 units (HCF) per month 1,132 27%
Total SFR Accounts Over Allocation 669 16% 11-20 units (HCF) per month 957 23%
Total SFR Accounts 4,142 100% 21-30 units (HCF) per month 704 17%
31-40 units (HCF) per month 607 15%
Average SFR Consumption HCF 41-50 units (HCF) per month 298 7%
Monthly Avg HCF Consumed per Customer Acct 27 > 50 units (HCF) per month 444 11%
Monthly Avg HCF Consumed per Acre of Land 19 Total SFR Accounts 4,142 100%

(*) SFR = Single Family Residential 1 HCF = 748 Gallons of Water

Section 5-B
Page 4
Water Sales by Month (AF)
SINGLE FAMILY RESIDENTIAL  
300

250

200

150

100

50

0
Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16
Curr Yr Water Sales (AF) 239 211 222 100 133 129 195 217 241 260 262 253
Prior Yr Water Sales (AF) 235 170 125 114 141 161 223 206 211 241 257 256
% Change 2% 25% 77% (12%) (6%) (20%) (12%) 6% 14% 8% 2% (1%)

TRAILING TWELVE MONTHS
Current Year Water Sales (SINGLE FAMILY RESIDENTIAL)   2,464 AF
Prior Year Water Sales (SINGLE FAMILY RESIDENTIAL)   2,339 AF
% Change 5%

Section 5-B
Page 5
Water Sales by Month (AF)
COMMERCIAL 
25

20

15

10

0
Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16
Curr Yr Water Sales (AF) 21 19 22 14 17 16 20 19 22 22 23 21
Prior Yr Water Sales (AF) 22 17 19 19 18 18 20 18 20 23 22 22
% Change (2%) 11% 16% (23%) (7%) (11%) (4%) 7% 6% (5%) 6% (3%)

TRAILING TWELVE MONTHS
Current Year Water Sales (COMMERCIAL) 238 AF
Prior Year Water Sales (COMMERCIAL) 254 AF
% Change ‐6%

Section 5-B
Page 6
Water Sales by Month (AF)
INSTITUTIONAL
45

40

35

30

25

20

15

10

0
Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16
Curr Yr Water Sales (AF) 32 23 16 9 11 11 24 32 34 42 42 38
Prior Yr Water Sales (AF) 31 16 10 9 12 15 25 32 30 37 39 40
% Change 5% 41% 66% 4% (5%) (29%) (5%) 2% 14% 15% 8% (4%)

TRAILING TWELVE MONTHS
Current Year Water Sales (INSTITUTIONAL) 303 AF
Prior Year Water Sales (INSTITUTIONAL) 333 AF
% Change ‐9%

Section 5-B
Page 7
Water Sales by Month (AF)
AGRICULTURE
45

40

35

30

25

20

15

10

0
Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16
Curr Yr Water Sales (AF) 34 25 14 9 7 9 21 25 29 33 31 33
Prior Yr Water Sales (AF) 38 21 7 10 11 19 24 31 34 37 37 39
% Change (11%) 21% 106% (11%) (36%) (51%) (11%) (19%) (14%) (12%) (15%) (15%)

TRAILING TWELVE MONTHS
Current Year Water Sales (AGRICULTURE) 306 AF
Prior Year Water Sales (AGRICULTURE) 436 AF
% Change ‐30%

Section 5-B
Page 8
MONTECITO WATER DISTRICT
MEMORANDUM

SECTION: 5-C

DATE: OCTOBER 19, 2016

TO: BOARD OF DIRECTORS

FROM: FINANCE COMMITTEE

SUBJECT: INVESTMENT OF DISTRICT UNRESTRICTED RESERVE CASH WITH


CALTRUST

RECOMMENDATION:
The Finance Committee recommends that Board review its current investment of the
District’s unrestricted reserves and cash currently on deposit with State of California –
Local Agency Investment Fund (LAIF) and reinvest these funds in a Medium Term Fund
with CalTRUST, a Joint Powers Agency, to take advantage of CalTRUST’s higher
interest rate.

BACKGROUND;
As of October 19, the District had approximately $11.5M of unrestricted reserves and
cash. The majority of this cash is invested in LAIF in accordance with the District’s
investment policy. The effective yield for the month of September 2016 was 0.634%

DISCUSSION:
The Committee has reviewed and recommends that the District invest its funds with the
Investment Trust of California (CalTRUST). Organized as a Joint Powers Authority
(“JPA”), CalTRUST is a program established by public agencies in California for the
purpose of pooling and investing local agency funds – operating reserves as well as
bond proceeds. The fund is currently managed by Wells Capital Management, an
institutional investment management firm and part of Wells Fargo Asset Management.

A Board of Trustees supervises and administers the investment program of the Trust.
The Board is comprised of experienced investment officers and policy-makers of the
public agency members.

CalTRUST offers three investment options to provide participating agencies with a


convenient method of pooling funds including: a money market, a short-term, and a
medium-term account. Each account seeks to attain as high a level of current income
as is consistent with the preservation of principal. As of September 2016, the
distribution yield for the short-term and medium-term account is 0.81% and 1.01%,
respectively.

Section 5-C
Page 1
CalTRUST provides local agencies with investment options across the 0-5 year maturity
range as follows:

1. Target Duration of CalTRUST Short-Term Fund is 0-2 years per adopted Investment Policy Guidelines. Present strategic
positioning direction from Board of Trustees calls for a target duration of 0.5-1.0 years.
2. Fees for LAIF are expressed as a percentage of quarterly investment earnings rather than total assets. The 2.48%
reflects fees for the second quarter of 2015 (April 1, 2015 through June 30, 2015).
3. CalTRUST holds no Wells Fargo stock or Wells Fargo Debt Securities.

The Portfolio Sector and Quality Breakdown is as follows:

SECTOR QUALITY

US Govt Agency 46% AA+ 47%


Corporate 28% AAA 16%
MBS/ABS 11% A 15%
Muni 9% AA‐ 9%
SupraNational 5% A+ 5%
Money Market 2% A‐ 4%
100% AA 4%
A‐1+ 0%
100%

Section 5-C
Page 2
CalTrust accounts offer the following features:

• No account minimums or maximums


• No limit on number of accounts
• Unlimited transactions in MMFs and Short-Term Fund
• Weekly transactions in Medium-Term Fund
• Daily mark-to-market of portfolios information
• 24-hour secure online access to account information; reflects all activity through
prior day close-of-business
• No account minimums
• No account maintenance fees
• No transaction or wire fees

ATTACHMENTS:

CalTRUST – Monthly Market Update


CalTRUST – Participant List

Section 5-C
Page 3
Monthly Market Update
October 2016 Volume 12 Number 10

  President’s Perspective   CalTRUST Money Market Funds


Since
With Economic Data Trending Modestly Stronger, CalTRUST Avg Annual Total Return (September 30, 2016) 1-year 3-year 5-year 10-year Inception
Funds Are Positioned For Challenge Of Higher Rates CalTRUST Government MMF 0.21% 0.08% 0.05% 0.89% 3.27%
As expectations build for a hike in rates by the Fed, and modestly
Lipper Instl Govt MMF Average 0.09% 0.04% 0.03% 0.85% --
rising rates in the economy, fixed income investors face challenges –
CalTRUST Heritage MMF 0.36% 0.18% 0.15% 1.10% 2.68%
whether they be individuals or institutional investors like public
agencies. The low yield environment since the 2008 financial crisis Lipper Instl MMF Average 0.20% 0.09% 0.07% 0.97% --
has presented investors with near zero yields for short-maturity   CalTRUST Portfolio Snapshot (September 30, 2016) 2016)
securities and -- comparatively -- modestly higher yields for longer CalTRUST CalTRUST Merrill
maturity investments. Given the persistence of this low rate LAIF
Short-Term     Medium-Term   1-3 Year
environment, it is understandable that many investors have been Total Yield   Yield   Yield Total   Gov't & Corp
tempted to look to longer maturity securities to boost the yield on their Return Return   Return   Return Return   "A" or Better
portfolios.
Distribution Yield1 0.81%   0.64%   1.01%   N/A
This “reaching for yield”, however, exposes investors to interest rate
Effective Duration 0.59   N/A   1.78   1.90
risk. Since bond prices move in inverse relationship to yield and the
Avg Maturity (yrs) 1.07   0.44   2.00   1.96
general direction of rates, as rates rise the price of fixed income
securities falls. In a rising rate scenario, this inverse relationship can Returns:2                
One Month 0.06% 0.07%   0.05%   0.08% 0.08%   0.11%
result in negative rates of total return on an individual security or a
One Year 0.71% 0.66%   0.50%   0.97% 1.16%   1.12%
portfolio; even on “safe-haven” instruments such as US Treasuries.
Three Year3 0.52% 0.50%   0.35%   0.82% 0.95%   1.00%
Public agency investors tempted to “reach” for additional yield by
Five Year3 0.50% 0.46%   0.34%   0.85% 0.84%   0.96%
extending the maturity of their holdings need to understand the
Ten Year3 1.41% 1.37% 1.34% 1.96% 2.08% 2.45%
additional risk they are assuming. At CalTRUST, we are very mindful
Since Inception3, 4 1.78% 1.75%   1.68%   2.11% 2.23%   2.54%
of this risk, and have positioned the CalTRUST Short- and Medium- 1. CalTRUST Short- and Medium-Term and LAIF yields are net of fees. The Merrill Index is
Term portfolios toward the lower-end of their target durations, so as to unmanaged, and does not reflect any deduction for administrative fees or expenses.
2. CalTRUST and LAIF returns are net of all investment advisor, administrative and program fees.
manage this risk, to ensure sufficient liquidity to meet participants’ cash 3. Annualized.
needs, and to provide the flexibility to take advantage of higher rates 4. CalTRUST Short- and Medium-Term portfolios commenced operations February 13, 2005.
when they do arrive.
  Financial
 Fin nci l Markets
M rk ts Update
Upd t
* * * History Indicates That Equity Markets Will Keep Rising in 2017 --
Chuck Lomeli, President of the
If Earnings Growth Exceeds The 10-Year Treasury Yield
CalTRUST Board of Trustees
In his most recent Economic & Market Perspective (link),
and Solano County WellsCap Chief Investment Strategist, Jim Paulsen looks at the
Treasurer relationship between the US stock market and bond yields in the post-
calomeli@solanocounty.com
WWII era.
  Treasury Yield Curve Jim shows that the equity market has done fine, even in periods of
25
2.5 rising rates, provided the annual growth rate in earnings per share
(EPS) exceeds the 10-year Treasury bond yield. To illustrate the
point, Jim looks at the Earnings-Yield Indicator (EYI) – the annual
2.0 growth in trailing 12-month S&P 500 EPS minus the 10-Year yield.
Looking at the history of the EYI since 1950, Jim finds that, when the
EYI was above zero the stock market generated:
1.5   Annualized returns more than twice as great as when the EYI was
12/31/2015
below zero -- 11.6% versus 4.7%;
Yield - %

8/31/2016
  Positive monthly returns 62% of the time compared to only about
1.0 55% of the time when the EYI was below zero.
9/30/2016
Moreover, in months when the 10-year bond yield rose and the EYI
was above zero, the S&P 500 Index increased at almost a 10%
0.5 annualized rate, versus only a 0.61% pace when the EYI was
negative.
9/30/2015
In looking forward to 2017, with commodity prices having stabilized
0.0 and begun rising modestly, Jim sees a modest pickup in earnings
growth and a positive EYI. This is probably sufficient to keep the
market rising -- even in the face of Fed rate hikes.
Maturity
The CalTRUST Monthly Market Update is prepared monthly by the Investment Trust of California (CalTRUST) for participants in the CalTRUST Joint Powers Authority pooled investment program. The Newsletter is prepared solely for informational purposes and is
not to be construed as the solicitation of an offer to sell or of an offer to buy any security, nor is it intended to constitute a recommendation for the purchase or sale of any security. The information contained herein is based upon data obtained from sources believed
to be reliable, but is not guaranteed by us as being accurate and does not purport to be a complete summary of the available data. Additional data will be provided upon request.
Section 5-C
Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in the Monthly Market Update
reflect a judgment at its preparation date by CalTRUST and are subject to change without notice. The price, value of, and income from any securities or financial instruments issued by the entities mentioned in this Monthly Market Update may fall as well as rise.
Page 4
Participants: (as of 10/14/16) *JPA Member
Counties:
1. Butte County*
2. Contra Costa County*
3. Riverside County*
4. Solano County*
5. Sonoma County*
6. Yuba County*
7. Alameda County
8. Santa Barbara County*
9. San Diego County*
10. Imperial County
11. Monterey County*
12. Madera County
13. Del Norte County
14. CALease Public Funding – County of Santa Barbara – Wells Fargo Bank – Escrow Agent
15. Wells Fargo Bank, as Trustee for County of Mendocino TRAN
16. Wells Fargo Bank, as Trustee for County of Monterey TRAN
17. Wells Fargo Bank, as Trustee for County of Tulare TRAN
18. Mono County
19. Modoc County
20. Ventura County
21. Kings County
22. San Luis Obispo County

Cities:
23. Chino*
24. Chino Redevelopment Agency*
25. National City*
26. Riverside
27. Pinole*
28. Pinole Redevelopment Agency*
29. Oakley
30. Richmond
31. Poway
32. Albany
33. Hercules
34. Rancho Cucamonga
35. Rancho Cucamonga Redevelopment Agency
36. Chula Vista
37. San Bernardino
38. Sacramento*
39. Sacramento Housing and Redevelopment Agency
40. Wells Fargo Bank, as Trustee for City of Stockton TRAN
41. City of Larkspur
42. Wells Fargo Bank, as Trustee for City of Richmond TRAN
43. City of San Dimas
44. City of El Centro
45. Laguna Niguel
46. Rialto
47. Norwalk
48. Palm Springs
49. Lodi
50. Elk Grove*
51. Port Hueneme
52. Town of Ross
53. Lafayette
54. Beverly Hills
55. Villa Park
56. Ojai
57. Delano
58. Concord
59. Gardena
60. Martinez
61. Arvin
Section 5-C
Page 5
62. Bellflower
63. Jackson
64. Tulare
65. City of Santa Barbara Housing Authority
66. City of Paso Robles Housing Authority
67. Wasco

Water Districts/Special Districts:


68. Rio Alto Water District*
69. Central California Irrigation District
70. West County Wastewater District (Contra Costa County)
71. Dudley Ridge Water District
72. San Luis & Delta-Mendota Water Authority
73. Westlands Water District*
74. Eastern Municipal Water District
75. Chino Basin Water Conservation District
76. West Valley Mosquito and Vector Control District*
77. Water Facilities Authority*
78. Contra Costa County – Central Sanitary District
79. Kings River Conservation District
80. San Mateo Transit Authority*
81. Los Angeles County Metropolitan Transportation Agency
82. Inland Empire Utilities Agency
83. Helendale Community Services District
84. Consolidated Central Valley Table Grape Pest & Disease Control District
85. San Diego Unified Port District
86. Monterey Peninsula Regional Park District
87. Regional Government Services Authority
88. Santa Ana Watershed Project Authority
89. Midway City Sanitary District*
90. Fallbrook Healthcare District
91. Santa Lucia Preserve Community Services District
92. West Valley Water District
93. Yorba Linda Water District
94. Crestline Sanitation District *
95. Inland Empire Resource Conservation District
96. Antelope Valley – East Kern Water District
97. Tulare Local Healthcare District
98. San Bernardino Valley Water Conservation
99. South Feather Water & Power Agency
100. Kinneola Irrigation District
101. Chino Valley Independent Fire District
102. Chino Basin Watermaster
103. James Irrigation District
104. South Coast Water District*
105. Castroville Community Services District
106. Kaweah Health Care District
107. Maxwell Irrigation District
108. San Diego County Regional Airport Authority
109. Rialto Utility Authority
110. Transportation Authority of Marin
111. Victor Valley Wastewater Reclamation Authority
112. Orange County Cemetery District
113. Bay Area Toll Authority
114. Sacramento Regional Transit Authority
115. Las Virgenes Municipal Water District
116. Lake Hemet Municipal Water District
117. Rosamond Community Services District
118. Palm Ranch Irrigation District
119. North of the River Municipal Water District*
120. Oildale Mutual Water Company*
121. McKinleyville Community Services District
122. Tulare Irrigation District
123. Lamont Public Utility District
124. San Gorgonio Pass Water Pass Agency
125. CalViva Health
126. El Dorado LAFCO
127. Costa Mesa Sanitary District
128. Herlong Public Utility District
129. Riverside Transit Agency
130. Mammoth Community Water District
131. Kern Delta Water District
132. Ironhouse Sanitary District
133. Florin Resource Conservation District / Elk Grove Water District
134. Twentynine Palms Water District
Section 5-C
Page 6
135. Cutler Public Utility District
136. Valley Sanitary District*
137. Cayucos Sanitary District
138. Orchard Dale Water District
139. Heffernan Memorial Healthcare District
140. Altadena Library District
141. Resource Conservation District of the Santa Monica Mountains
142. Coachella Valley Mosquito and Vector Control District

Public Non-Profit
143. ABAG Finance Authority
144. National Homebuyers Fund, Inc.
145. California State Association of Counties
146. CPS Human Resource Services
147. CRHMFA Homebuyers Fund
148. CSAC Finance Corporation
149. League of California Cities
150. Regional Council of Rural Counties
151. ALPHA Fund*
152. National Association of Counties (NACO)
153. California Special Districts Association (CSDA)
154. CSDA Finance Corporation
155. CSAC Public Funds
156. Association of California Water Agencies
157. ACWA Joint Powers Insurance Authority
158. California Counties Foundation
159. Special Districts Leadership Foundation
160. Alameda Alliance for Health
161. State Association of County Retirement Systems (SACRS)
162. Gold Coast Health Plan*
163. Santa Barbara San Luis Obispo Regional Health Authority (CenCal Health)
164. Fresno-Madera-Kings Regional Health Authority (CalViva Health)
165. California Coverage and Health Initiatives
166. Central California Alliance for Health
167. California Association of County Treasurers & Tax Collectors

Community Colleges
168. College of the Sequoias

Section 5-C
Page 7

Das könnte Ihnen auch gefallen