HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 09/27/2005
t'rND East Valley
Water District
3654 HIGHLAND AVE., SUITE #12, HIGHLAND, CA
REGULAR BOARD MEETING September 27, 2005 2:00 P.M.
AGENDA
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"In order to comply with legal requirements for posting of agenda, only those items filed with the
District Secretary by 10:00 a.m. on Wednesday prior to the following Tuesday meeting not requiring
departmental investi sation, will be considered by the Board of Directors".
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CALL TO ORDER
PLEDGE OF ALLEGIANCE
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I. Approval of Agenda
2. Public Comnents
CONSENT CALENDAR
3. Approval of Board Meeting Minutes for September '13, 2005
4. Resolution 2005.25 - A Resolution to approve and adopt the National Incident Management
System (NIMS)
5. Accounts Payable Disbursements: Accounts Payable Checks 203188 through 203366 were
distributed ~:eptember 8, 2005 through September 21, 2005 in the amount of $2,372,717.35.
Payroll Checks for period ended September 16,2005 and August 30, 2005 and included checks
and direct deposits, in the amount of $129,097.77 and $4,168.94. Total Disbursements for the
period were $2,505,984.06.
OLD BUSINESS
6. Headquarter" Project Review and Update (General Manager)
7. Radon Rule Update
8. Discussion ,md Possible action regarding LAFCO's 2919 - Service Review and Sphere of
influence Update for the San Bernardino Valley Water Conservation District
NEW BUSINESS
9. Discussion and Possible action regarding the renewal of the District's Commercial and Liability
Insurance Package from Arroyo/Caldwell & Moreland Insurance Services
10. Discussion and Possible action regarding renewal of the Integrated Management Program
Demonstration Project Agreement
11. Discussion aad Possible action regarding Proposal from Basin Water Technology Group, Inc.
for Uranium treatment at Well 40
12. Discussion a:ad Possible action regarding the IRS increase for the standard mileage rates for the
remainder of 2005
13. Discussion and Possible action regarding the Association of California Water Agencies
(ACW A) 2005 Sponsorship Program
14. Discussion and Possible action regarding Amendment No. 2 to the Agreement Between East
Valley Wate:: District and Camp Dresser & McKee, Inc. (CDM) dealing with the Seven Oaks
Dam Water Quality Impacts
REPORTS
15. General Manager's Report
16. Seven Oaks ;)am Water Quality Update
17. Oral Comments from Board of Directors
CORRESPONDENCE
18. Letter of appreciation to the District from the Kiwanis Club of Highland, Inc for the District's
participation in the Car and Motorcycle Show in conjunction with the Highland Area Chamber
of Commerc'~ Discover Highland Night.
MEETINGS
19. Highland Area Chamber of Commerce Benefit Golf Tournament, San Bernardino Golf Club,
October 20, :W05.
CLOSED SESSION
20. CONFEREi\'CE WITH REAL PROPERTY NEGOTIATOR
[Government Code Section 54956.8]
Property: 4.3 Acres of Vacant Land
Located North of 5th Street,
East of the 30 Freeway
Highland, CA
APN: 1201-341-07
Party with whom District will negotiate: Mission Development
Party who will be negotiating on behalf of the District: Robert Martin/Jim Cimino
UndEr Negotiation: Price and Terms of Payment
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21. CONFEREi\CE WITH REAL PROPERTY NEGOTIATOR
[Government Code Section 54956.8]
Property : 12.2 Acres of Vacant Land
Located at 5th Street and
Webster Street,
Highland, CA
APN: 1201-361-01,02,03
Party with whom District will negotiate: Mission Development
(Greenspot Village and
Market Place LLC)
Part) who will be negotiating on behalf of the District: Robert Martin/Jim Cimino
Und,:r Negotiation: Price and Terms of Payment
22. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
[Government Code Section 54956.8]
Property: 27+/- Acres of Vacant Land
South of Highland Ave, West
Of Central Ave
San Bernardino County,
California
APN: 1191-25-01-03-04
Party with whom District will negotiate: State of California
Party who will be negotiating on behalf of the District: Robert Martin/Jim Cimino
Under Negotiation: Price and Terms of Payment
ANNOUNCEMENT OF CLOSED SESSION ACTIONS
ADJOURN
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Pursuant to Government Code Section 54954.2(a), any request for a disability-related modification or
accommodation, induding auxiliary aids or services, that is sought in order to participate in the above-
agendized public meeting should be directed to the District's Administrative Assistant at (909) 885-
4900 at least 24 hours prior to said meeting.
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Subiect to Aooroval
EAST VALLEY WATER DISTRICT SEPTEMBER 13, 2005
REGULAR BOARD MEETING
MINUTES
The meeting was called to order at 2:00 p.m. by President Wilson. Director Lightfoot led the
flag salute.
PRESENT: Directors Lightfoot, Sturgeon, Negrete, Wilson, Goodin
ABSENT: None
STAFF: Ron Buchwald, Assistant District Engineer; Brian Tompkins, Chief
Financial Officer; Justine Hendricksen, Administrative Assistant
LEGAL COUNSEL: Steve Kennedy
G~ST(s): Jim Cimino (Cimino Realty), Charles Roberts (Highland Community
News)
APPROVAL OF AGENDA
M/S/C (Sturgeon-Negrete) that the September 13, 2005 Agenda be approved as
submitted.
PUBLIC PARrICIPATION
President Wilson declared the public participation section of the meeting open at 2:01 p.m.
There being no written or verbal comments, the public participation section was closed.
APPROVAL OF AUGUST 23, 2005 BOARD MEETING MINUTES
M/S/C (Negrete-Lightfoot) that the August 23, 2005 Board Meeting Minutes be
approved as submitted.
APPROVAL OF SPECIAL BOARD MEETING AND PUBLIC HEARING
SEPTEMBER 1, 2005
M/S/C (Negrete-Lightfoot) that the September 1, 2005 Special Board Meeting and
Public Hearing be approved as submitted.
Minutes: 09/13105
RESOLUTION 2005.22 - NOTICE OF COMPLETION EXECUTED BY THE
DISTRICT FOR LINER AND TEST PUMP FOR WELL llA IN THE CITY OF
HIGHLAND, was presented to the Board for approval.
M/S/C (Negrete-Lightfoot) that Resolution 2005.22 be approved as submitted.
RESOLUTION 2005.23 - ACCEPTING CONVEYANCE OF PIPELINE EASEMENT
FROM JACK R. WIDMEYER, TRUSTEE OF THE JACK R. WIDMEYER
SEPARATE PROPERTY REVOCABLE TRUST, was presented to the Board for
approval.
M/S/C (Negrete-Lightfoot) that Resolution 2005.23 be approved as submitted.
RESOLUTION 2005.24 - NOTICE OF COMPLETION EXECUTED BY THE
DISTRICT FOR REMOVAL OF TREES, CONCRETE BOX, OLD WATER PIPE,
CHAIN LINK FENCING, AND DIG FOOTINGS FOR BLOCK WALL AT PLANT
27, was presented to the Board for approval.
M/S/C O~egrete-Lightfoot) that Resolution 2005.24 be approved as submitted.
DlSBURSEMI:NTS
M/S/C (Negrete-Lightfoot) that General Fund Disbursements #202928 through
203188 distribLted during the period of August 24,2005 through September 9,2005 in the
amount of $1,725,802.08 and Payroll Fund Disbursements for the period ended August 19,
2005 and September 2, 2005, 2004 in the amount of $124,768.39 and $143,371.37 totaling
$1,993,941.84 be approved.
HEADQUARTERS PROJECT REVIEW AND UPDATE
No update.
DISCUSSION AND POSSIBLE ACTION REGARDING THE MEMORANDUM OF
UNDERSTANDING BETWEEN EAST VALLEY WATER DISTRICT AND THE
SAN BERNARDINO PUBLIC EMPLOYEES ASSOCIATION, was presented to the
Board for approval.
M/S/C (Lightfoot-Negrete) that the Memorandum of Understanding between East
Valley Water District and the San Bernardino Public Employees Association be approved as
submitted.
DISCUSSION AND POSSIBLE ACTION REGARDING THE CITY OF SAN
BERNARDINO MUNICIPAL WATER DEPARTMENT REQUEST FOR RELEASE
OF A PORTION OF AN EXCLUSIVE EASEMENT FROM EAST VALLEY WATER
DISTRICT AT PLANT 37 (FOOTHILL & STERLING A VENUES).
2 Minutes: 09/13/05
Ron Buchwald updated the Board regarding the request from the City of San Bernardino
Municipal Water Department; that only a few small changes are needed; that CDM is
currently reviewing the request and the District is awaiting their recommendations.
No action taken.
DIRECTORS' FEES AND EXPENSES FOR AUGUST 2005, were presented to the
Board for appwval.
MlS/C (Sturgeon-Negrete) that the Directors' fees and Expenses for August 2005 be
approved.
GENERAL MANAGER'S REPORT
The Board Pre~;ident reported that he had met with Congressman Lewis regarding the Seven
Oaks Dam water quality issues.
Ron Buchwald updated the Board on both the Sterling Pipeline project and Plant 27 project.
Information only.
SEVEN OAKS DAM WATER QUALITY UPDATE
No update.
ORAL COMMENTS FROM BOARD OF DIRECTORS
Director Sturg,~on commented on the "Discover Highland Days" event; that the event was
well received md complimented staff on their participation; that the Insurance Committee
had met during the week, and will meet again on September 19,2005.
Director Goodin would like clarification a:s to who is acting General Manager when Bob is
away on business.
Director Negrete indicated that Congressman Lewis is receiving conflicting information on
water quality i:;sues from the Army Corps of Engineers.
Director Lightfoot received a water test data form on his door, and would like the District to
inform customers via calls, newsletters etc. that this form and the request to sample
customers wat'~r is not from the District.
Information Oaly.
LETTER TO THE DISTRICT FROM ANDY HORNE REQUESTING DISTRICT
SUPPORT TO SERVE AS VICE PRESIDENT OF THE ASSOCIATION OF
CALIFORNIA WATER AGENCIES.
No action takEn.
3 Minutes: 09/13/05
ASSOCIATION OF THE SAN BERNARDINO COUNTY SPECIAL DISTRICTS
MEMBERSHIP MEETING HOSTED BY VICTOR VALLEY WATER DISTRICT,
RAMADA INN, VICTORVILLE, CA SEPTEMBER 19, 2005.
THE NORTHERN CALIFORNIA TOUR PRESENTED BY THE WATER
EDUCATION FOUNDATION, SACRAMENTO, INTERNATIONAL AIRPORT,
SEPTEMBER 21-23,2005.
SAN BERNARDINO AREA CHAMBER OF COMMERCE, BUSINESS AFfER
HOURS, PRESENTED BY GREYSTONE EXECUTIVE OCCUPATIONAL
MEDICINE, INC., 201 E. AIRPORT DRIVE, SUITE C, SAN BERNARDINO, CA,
SEPTEMBER 22, 2005.
4TH ANNUAL ACHIEVEMENT IN WATER RESOURCES AWARD BANQUET,
CALIFORNIA STATE UNIVERSITY (OBERSHA W DINING ROOM), SAN
BERNARDINO, OCTOBER 8, 2005.
THE SOUTHERN CALIFORNIA TOUR PRESENTED BY THE WATER
EDUCATION FOUNDATION, ONTARIO INTERNATIONAL AIRPORT,
OCTOBER 19-21, 2005.
CLOSED SESSION
The Board entered into Closed Session at 2:33 p.m. a:s provided for in the California Open
Meeting Law, Government Code Section 54945.9(a); to discuss the item(s) listed on the
Agenda.
ADJOURN TO REGULAR SESSION
President Wilson declared that the meeting adjourn to regular session.
ANNOUNCEMENT OF CLOSED SESSION ACTIONS
The Board returned to regular session at 2:38 p.m. The items listed on the Agenda were
discussed in Closed Session with no reportable action being taken.
ADJOURN
The meeting was adjourned at 2:38 p.m. until the next regularly scheduled Board Meeting on
September 27, 2005.
George E. Wilson, President
Robert E. Martin, Secretary
4 Minutes: 09/13/05
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RESOLUTION 2005.25
RESOLUTION OF THE BOARD OF EAST VALLEY WATER DISTRICT,
SAN BERNARDINO CALIFORNIA
Date: September 27,2005
WHEREAS, the President of the United States in Homeland Security Directive (HSPD)-5,
directed the Secretary of the Department of Homeland Security to develop and administer a
Nationallncidenl Management System (NIMS), which would provide a consistent nationwide
approach for Federal, State, local, and tribal governments to work together more effectively and
efficiently to prevent, prepare for, respond to and recover from domestic incidents, regardless of
cause, size or ce,mplexity; and
WHEREAS, the collective input and guidance from all Federal, State, local, and tribal homeland
security partnerE has been, and will continue to be, vital to the development, effective
implementation and utilization of a comprehensive NIMS; and
WHEREAS, it is necessary and desirable that all Federal, State, local and tribal emergency
agencies and pe rsonnel coordinate their efforts to effectively and efficiently provide the highest
levels of inciden': management; and
WHEREAS, to facilitate the most efficient and effective incident management it is critical that
Federal, State, local, and tribal organizations utilize standardized terminology, standardized.
organizational structures, interoperable communications, consolidated action plans, unified
command structures, uniform standards for planning, training, and exercising, comprehensive
resource management, and designated incident facilities during emergencies or disasters; and
WHEREAS, the NIMS standardized procedures for managing personnel, communications,
facilities and resources will improve the Utility's ability to utilize federal funding to enhance
agency readiness, and streamline incident management processes; and
WHEREAS, the Incident Command System (lCS) components of NIMS are already an integral
part of various incident management activities at East Vallev Water District, including current
emergency mar agement training and exercise programs; and
WHEREAS, in !2005) the East Valle v Water District adopted the statewide Standardized
Emergency Management System (SEMS), and participates in an emergency management
program involving all local water utilities through the Water Emergency Response Organization
of Orange County; and
WHEREAS, the California Standardized Emergency Management System substantially meets
the objectives of the National Incident Management System; and
WHEREAS, Garv Sturdivan. the Emergency Management Manager, appointed by the General
Manager, will ensure that personnel who are part of the emergency organization, and who are
designated as California Disaster Service Workers (according to California Government Code
3100-3109), are trained and prepared to respond; and
WHEREAS, the National Commission on Terrorist Attacks (9-11 Commission) recommended
adoption of a stElndardized Incident Command System;
WHEREAS, pur:,uant to the President's Executive Order, Homeland Security Directive (HSPD)
5, local governrrents are required to establish the National Incident Management System
(NIMS) as the standard for incident management.
NOW, THEREFORE, BE IT RESOLVED that the East Valle v Water District's Board of Directors
does hereby approve and adopt the National Incident Management System as the Utility's
standard for incident management, and further more directs staff to implement NIMS, including
the delivery of a employee trainin9 program.
t'rND East Valley
Water District
Board Memorandum Date: September 27, 2005
From: Brian W. Tcmpkins / Chief Financial Officer
Subject: Disbursements. :z;-r-
Recommendation:
Approve the attached list of accounts payable checks and
payroll issued during the period September 8, 2005
through September :~1, 2005.
Background:
Accounts payable crecks are shown on the attached listing and-include numbers 203188 to 203366 for
A total of $2,372,717".35.
The source of funds for this amount is as follows:
Arroyo Verde Funds
Construction Fund -Loan
Unrestricted Funds $2,372,717.35
Payroll disbursed was for the period ended September 16, 2005 and included checks and direct
deposits, Totaling $'29,097.77.
Directors payroll disbursed was for the period ended August 30, 2005 and included checks and direct
deposits totaling $4168.94.
Total disbursements $2,505,984.06.
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RESEARCH AND THEORY
NEW PERSPECTIVES ON THE COSTS AND
BENEFITS OF MITIGATING RADON IN
DRINKING WATER
Robert Raucher, afmmder ROBERT S. RAUCHER
and senior partner at Sl1"Q-
tus Consulting, holds a Stratus Consulting
Ph.D. in natural reSO'.lrce
economics and p"blic DOUGLAS CRAWFORD-BROWN
finance from the Unhersity University of North Carolina at Chapel Hill
of Wisconsill-Madisol1. MEGAN HARROD
Douglas Crawford-Btown Stratus Consulting
received his B.S.. M.S., and
Ph.D. degrees in Phy.,ics
and Nuclear ScienceJ Tom The U.S. Environmental Protection Agency (EPA) issued proposed afederal drink-
Georgia Tech. He currently
is a professor in the depart- ing water standardfor radon, in 1999. A final rule is anticipatedfrom the EPA in
ments of environment,ll sci. 2005 or 2006. In this article, important additional insights are gleaned by applying
enees and engineerin,? pub- an incremelltal net benefits perspective to the data and analyses p~esented by
lic policy, and ecology, and Vitaliano in a 2003 article published in this journal. In addition, updates to
director a/the campur-wide Vitaliano's risk analysis are made, based on emerging scientific evidenc~ on the
Carolina Environmental risks posed by radon at levels seen in residential settings. The updated analysis
Program. indicates the relevant policy insights that are obtained by applying an incremental
net benefits approach in lieu of average net benefits, and suggests the proposed
Megan Harrod is a senior standard may require careful reconsideration.
associate at Stratus Con-
sulting and doctoral (andi- Keywords: radon,' drinking water,' regulations; benefit-cost analysis; risk
date in economics at Ihe assessment
University of Colorada in
Boulder. Colorado. She In its April 2003 issue. Public Works Management &: Policy published an article by Donald
received an M.A. in fea- Vitaliano (an economics professor at Rensselaer Polytechnic Institute) titled "Costs and Ben-
nomics from the Univ,~rsity efits of Mitigating Radon in Drinking Water" that examined the costs and benefits of the pro-
of Colorado and a BA in posed federal drinking water standard for radon, based on case studies of29 modest-sized com-
ecology from William:' munities in New York State. These federal standards are known as Maximum Contaminant
College. Levels (MCLs), and the U.S. Environmental Protection Agency (EPA) issued a proposed MCL
of radon at 300 pico-curies per liter (pCilL) in 1999 (U.S. EPA. 1999).
Vitali ana (2003) provided many useful results and insights on the benefits and costs of the
proposed radon MCL and concluded that the benefits might outweigh the costs, based on his
AUTHORS' NOTE: Analyses provided in this paper were supported in party by the Water Industry Tech-
nical Action Fund (WlTAF) and by the National Rural Water Association. WITAF is administered by the
American Water Works Association and is funded through member dues. WITAF funds information col-
lc::ction and analysis and other activities in support of sound and effective legislation, regulation, and drink-
ing water policies and programs.
PUBLIC WORKS MANAGEMENT & POLlCY. Vol. 10 No.1. Ju[y 2005 [0-22
DOl, 10. [177/10B7724X052BOO76
@ 2005 Sage Publications
[0
.._. .... -. .~. .. ---,-..--.--.-
Raucher, Harrod f COSTS AND BENEFITS OF RADON 11
assessment of radon risks for the communities he analyzed. However, important additional
insights can be glean"d from the data and analyses presented in his article. In addition, some
necessary rnodHication is required for his risk analysis. and several important updates can now
be made to the benefits' estimates based on emerging scientific evidence on the risks posed by
radon at levels seen h residential settings. This article examines these issues.
In specific, the aUlhors:
. Summarize Vit,i!iano's (2003) discussion of the likely costs of the proposed MCL for the
29 communities, concur that the EPA cost estimates may be understated, and agree that
the New York ~Hate-derived cost estimates, while potentially low as well, are the better
cost estimates to apply.
. Review the basis of the health risks estimated by Yitaliano for radon at the exposure levels
found in the 29 communities, critique the design and findings of the ecological epidemio-
logical study of Vitaliano's (2003) own risk analysis, and explain why the risk faclors
developed by t:," National Research Council (NRC, 1999) and adopted by the EPA are
more suitable t:-tan VitaIiano's estimates.
. Provide expanc ed benefit-cost results for the 29 communities based On the above and pro-
vide alternatiVE, policy interpretations. We ask not only the base question of whether the
proposed MC!. yields benefits that might outweigh the costs, but proceed to more
detailed and policy-relevant questions about what MCL level may provide the greatest net
social benefit (i.e., whether 300 pCiIL, or some other level, may be the best choice for set-
ting the MCL ,n terms of generating the greatest returns to society). Show how much
these results cen vary by community size.
. lntroduce a modification to the NRClEPA risk estimate based On peer~reviewed scientific
research recently emerged regarding radon risks at residential-type exposure levels
(rather than occupational exposuFes to uranium miners). Also examined are implications
for separating out the portion of the .elevated risks borne by smokers due to their use of
tobacco, so th~lt the base risk can be properly attributed to radon exposure rather than
smoking behavior.
BACKGROUND ON THE REGULATORY
HISTORY OF THE PROPOSED RADON MCL
The proposed rad ,n MCL has been the subject of considerahle debate ever since it was ini-
tially proposed. in I'91 (U.S. EPA. 1999). As in the 1999 rulemaking, the 1991 proposed rule
called for an MCL cf 300 pCiIL. The issues that emerged following the 1991 proposed rule
focused on (aJ disagreement over the EPA's estimated cost of compliance, with severa! organi-
zations developing studies that suggested EPA's costs might be understated, perhaps by an order
of magnitude or me,re (e.g., Raucher & Drago, 1992; Raucher et aI., 1995; U.S. General
Accounting Office. 2002), (b) the disproportionate cost burden imposed on households in small
communities became these community water systems (CWS) often rely on groundwater
sources and Jack ecoJlomies of scale in radon removal treatment, and (c) the relative inefficiency
of reducing radon-associated human health risks from drinking water in contrast to mitigating
indoor radon originating from soH gas. The issues were so contentious that Congress acted to
have EPA table the radon rule.
The radon MCL remained dormanc until the Safe Drinking Water Act Amendments of 1996
(SDWAA) mandated that EPA proceed with an alternative regulatory approach. Under the
SDWAA. an MCL sIll must be set by EPA and the rule must also provide a mechanism by which
cost burdens could b" largely avoided ifa CWS set up and maintained a state- or EPA-approved
"Multi-Media Mitigation Program" (MMMP). An MMMP would address soil gas radon issues
ins lead of the relatively minor contribution of human exposures to radon from drinking water
and must achieve an equivalent or better risk reduction from soil gas mitigation than would be
achieved by a given CWS by meeting the MCL.
iz PUBLIC WORKS MANAGEMENT & POLlCY I July zOOS
In accordance with the statute, EPA's 1999 radon rule proposes an MCL of 300 pCi/L, and
also includes a provision for the MMMP. Under the rule as proposed, a CWS with an approved
MMMP could comply with a 4,000 pCiIL "Alternative MCL" (AMCL) in lieu of the far more
stringent MCL. The proposed AMCL was established, as specified by the SDWAA, as equiva-
lent to the national average outdoor ambient level of exposure to radon (i.e., the point where, on
average, opening a window would expose the household [0 as much radon risk as would routine
use of tap water in the home).
The 1999 regulatory proposal of a 300 pCi/L MCL, combined with the MMMP option and
its 4,000 pCiIL AMCL, has itself created considerable controversy. On the positive side, the
MMMP approach provides communities with an opportunity for more local autonomy and con-
trol in terms of how it decides to invest in reducing radon-related risks. Thus, localities would
have choices about how to address the economic efficiency (e.g., cost per case avoided, and
equity implications) (e.g., whose homes receive how much risk reduction, associated with the
different risk mitigation options for soil, ga.s, or water-borne radon).
However. on the negative side, even with the MMMP option, many of the same issues as
arose in response to the 1991 proposal remain a concern: how high the costs might be, especially
for small systems, and whether the risk reduction benefits outweigb the costs. Many concerns
were aired about the potential equity aspects of the MMMP approach, as may arise where arela-
tive small number of community homes may receive soil gas mitigation benefits in lieu of all
community households realizing some smaller level of risk reduction benefit from a water-
oriented approach.
Finally, a key concern exists about the institutional viability of the MMMP approach and few
if any states are now inclined to offer that option to CWS within their jurisdiction (e.g., Stratus
Consulting, 20(0). This reluctance on the part of states to embrace the MMMP approach is
often based on their lack of the financial or other resources to institute another regulatory pro-
gram. There also are concerns about the potential negative public perceptions and confusion of
setting a "duar" standard" with the MMMP (1.e" the MCL and the AMCL) rather than a single
standard (the MCL).
Whether the MMMP approach remains a viable component of the future EPA rulemaking,
the issues raised by Vitaliano (2003) remain very relevant, as EPA has postponed attempting to
finalize the radon MCL until late 2005 or beyond. Accordingly, it is important to refine and
update Vitaliano's work to better reflect the Current state of knowledge and to extract valuable
insights about the regulatory options under consideration.
ISSUES ASSOCIATED WITH COST OF COMPLIANCE ESTIMATES
A useful frame of reference for evaluating the benefits and costs of the proposed radon MCL
is at the level of small community water systems (CWS) (Vitaliano. 2003) because the prepon-
derant share of compliance costs will be borne by small systems. Figure I depicts EPA-based
estimates used to reveal the percentage share of estimated national costs and benefits that will be
borne by CWS in each of the various system size categories. starting at the left with the smallest
CWS of 25 to 100 persons served. For example, this figure reveals thnt 37% of the CWS with
radon levels above the proposed MCL are in the smallest size category of 25 to 100 persons
served, and that the households served by these extremely small systems would bear about 18%
of the national regulatory compliance costs but realize only 1 % of the aggregate risk-reduction
benefits.
Vitaliano (2003) starts with EPA-based cost estimates for the 29 small systems in his study
and then shows what New York State (NYS) estimated as site-specific costs for these 29 sys-
tems. He found that the site-specific estimates of cost\ were roughly three times higher than pro-
jected by EPA-even though usually a low cost compliance approach is favored and costed with
the NYS data (e.g., assuming a new, low radon well can be developed in lieu of installing treat-
meot to remove radon from waters drawn from existing weUfields).
Rauch". Harrod I COSTS AND BENEmS OF RADON 13
45
..
40
Percent of:
_ 35 IiJBenefits
0 ..
E. Ii'JCosts
.S 30 DeWS >MCL
..
,~ 25
;;;
.: 20
0
C
~ 15
of
10
5
0
Very very Very very Vcry Small Medium Large
small small small (3.3K-IOK) (lOK-100K) (> I 00,000)
(25-100) (101-500) (501-3300)
Figure 1: Percenhll:c of National Regulatory Benefits and Costs for Radon, by System Size (population
a.ned) (at MCL = 30') pCIIL)
SOURCE: Derived from U.S. Environment~1 Prorecclon Agency (1999)
Based on several independent reviews of the estimated compliance costs for radon (e.g., U.S.
General Accounting Office, 2002), the costs of the radon MCL will likely be higher than EPA
projected. Thus, it is prudent to stick with the state-based cost estimates Vitaliana provides,
rather than adopt EPA's estimates. [n fact, the cost estimates may still be lower than the actual
costs (Vitaliano, 2003).
ISSUES ASSOCIATED WITH RADON RISKS
AND THE BENEFITS OF THE MCL
Viwliano (2003) starts with a risk estimate provided by the NRC (1999) and applied by EPA
(1999). However, he then proceeds to develop his own estimate of radon-imposed risk in the 29
communities studied. based On inferences drawn from a simple ecologic epidemiological inter-
pretation of lung c meer incidence relative to radon levels in the zip codes served by his sample
ofCWS.
Unfortunately. Vitaliano's epidemiological study is not generally valid. It is of an ecological
design that has no more credibility than the study by Cohen (1989, 1995) that Vitaliano cites and
that shows a nega1lve correlation between radon home concentration and cancer. The Cohen
study is no longer considered valid, for reasons discussed by the NRC in its BEIR VI report
(NRC. 1999). T1lf problem with the approach taken by Vitaliano is that the contribution of
water to the overall radon concentration in the home air is a few percent at most, so small varia-
tions in underlying geology of a town (which ultimately produces mast of the radon in home air)
will swamp the differences in water-borne radon. Similarly, small variations in home construc-
tion faclors such as insulation and window design can lead to significant differences in indoor
radon concentration and movement of individuals between structures during the day averages
out differences in '~xposures. As Vitaliano himself notes. "the occurrence of basement radon is
very erratic so that group-level radon readings (e.g., by town or zip code) are less reliable indica-
14 PUBLIC WORKS MJ,NAGEMENT & POLICY I July 2005
tors of exposure" (p. 298). Yet it is these soil gas radon levels in basements that contribute most
strongly to total radon exposure in homes; hence, fluctuations in soil gas radon would result in
similar fluctuations in home air radon.
Accordingly, Vitaliano's (2003) radon risk estimates appear not to represent sufficiently
sound science to justify moving from the much better established NRC risk estimates, and
therefore this article adopts the NRC-derived and EPA-applied risk faclor as the starting point
for assessment. Later, it will introduce new scientific evidence to suggest risks posed by radon at
exposure levels typically found in residential settings may be far lower than currently estimated.
COMPARING BENEFITS TO COSTS:
AN INCREMENTAL APPROACH MAXIMIZES SOCIAL WELFARE
Beyond the discussion of the individual data components of the benefit-cost analysis (BCA)
is the obligation to address how the benefit-cost analysis was conducted. The goal of a BCA
should be to help guide decision making toward options that lead to the highest level of well-
being for society as a whole. Economists refer to this as umaximizing social welfare," an idea
that means looking for the MCL at which the benefits exceed the costs by the widest margin. At
this point the "net benefits" are the greatest (net benefits equal benefits minus costs).'
To identify the MCL that yields the greatest net benefit, economists look for the point where
"marginal benefits" are equal to umarginal costs." These "marginal" concepts refer to the
change in benefits and the change in costs for each possible increased stringency of an MCL
(Le., what the additional benefits and costs would be if an MCL were to be made I pCilL more
stringent than the last option considered).
In reaLity, rarely data examines how marginal benefits and costs change at such a tiny (Le., I
pCiIL) change in an MCL. Therefore, the terms "incremental benefits" and "incremental costs'"
are used instead of marginal benefits or m~gina1 costs. These "incremental" tenns refer to
examining how benefits and costs change from one MCL option to the next (e.g., moving from a
700 pCiIL radon standard to a500 pCiIL MCL option and then examining the incremental bene-
fits and costs of moving from 500 pCiIL to 300 pCiIL).
The incremental perspective allows one to view regulatory options one step at a time, and to
identify the point (MCL option) at which moving to the next more stringent option would add
more costs than benefits (where incremental benefits become outweighed by incremental
costs). By selecting the lowest MCL for which the incremental benefits still outweigh the incre-
mental costs, the poiicy will yield the greatest possible net benefits to society. Ergo the SDWAA
now specifies that EPA reveal the incremental costs and incremental benefits of each MCL
option-the comparison of these incremental benefits and costs enables one to maximize social
welfare.
Vitaliano (2003) simply evaluated whether a 300 pCiIL MCL would pass the total benefit-
cas! test. However, to best inform policy decisions, we should instead look for the MCL that
maximizes social welfare using the incremental approach described above, rather than deter~
mining whether a given MCL migbt provide positive net benefits.
Therefore, Vitaliano (2003) limits his approach in not presenting an incremental benefit-cost
comparison. Instead, he examines total benefits and total costs, and suggests that the proposed
MCL seems justified based on benefits being roughly the same size as costs. This type ofbenefit-
cost comparison only indicates that the regulation may be a "break-even" proposition at best
(net henefits of zero). Application of an increment analysis is needed to maximize net benefits.
Below, we provide such incremental analyses.
A COST.PER-CASE-AVOIDED APPROACH
There are two ways to ..amine the risk-cost tradeoffs inherent in the proposed radon rule.
The risk-reduction benefits are the estimated number of cases of premature mortality from
i-
l
,
l. Raucher, Hmod I COSTS AND BENEFITS OF RADON 15
!
f
I Thblel: lncremenlalAnalysis oreost per Fatality Postponed: DirrerentMCL Options (millions 1997 dollars)
< MeL Optiotl Anra.ge Casl per Fatality Postpon~d ($) IncMmental Cost pu Fatality Pcmponed ($)
,
~ 1.000 pCi/L 2.17 2.17
!
; 700 pCiIL 3.75 5.33
500 pCiIL 5.01 6.89
300 pCiIL 7.24 12.20
,
,
radon-associated lung cancers that are avoided at a given MCL. One way to evaluate these com-
. pares the risk red Jctions directly to costs, thereby developing a cost~effectiveness measure of
cost per prematur" fatality avoided. This approach, used by Vitaliano (2003) is developed iD this
section. The second approach is to explicitly assign monetary values to the risk reductions asso-
ciated with a poteltial MCL, using an approach based OD the "Value ofa Statistical Life" (VSL)
to monetize the r: sk reductions. This second approach enables a more traditional benefit-cost
comparison and is developed in the next section.
The first step in the cost-per-case avoided approach estimates the number of cases avoided in
each community, for each MCL. Using the NRC/EPA uDit risk factor for radon, Table I repli.
cates Vitaliano's results (Vitaliano, 2003, p. 293). Using the NYS cost estimates from Vitaliano !
replicates his "b",ak'eveD YSL" results iD his Table 4 (2003, p. 298). These are the community.
specific estimate" of average cost per premature fatality avoided for the MCL of 300 pCiIl..
(compared to baseliDe, unregulated radon conceDtratioDs).
Reevaluation "fthese results for differeDt possibleMCL OptiODS of I ,000,700,500, aDd 300
pCiIl..' provides ,dditional insight on the proposed radon standard and is accomplished by
inc1~ding costs and risk reductioDs only for those commuDities that would be impa,ted by a
given MCL option. For example, a CWS with radon at 450 pCiIl.. would not incur compliance
costs--{>r realize risk reduction benefits-if the MCL were set at 500 pCi/L or higher.
The results of this aDalysis arC; provided in Table I. As eXpected, the average cost per case
avoided is lowesl at the least stringent option evaJuated. In addition, the incremental analysis
(shown in the right-hand column in Table I) shows how fast the cost-per-case avoided increases
as the MeL beco~es more stringent. Forexample, the incremental cost per case avoided when
moviDg from 50C' pCiILto 300 pCiIl.. is $12.2 million shows how costly it becomes to consider
increasingly strir,gent MCL oprions.
Another inter'~sting perspective can be gained by examining how the cost per premature
fatality avoided \ arles across systems of different sizes. Table 2 provides these results, assum-
ing the MCL is 300 pCiIL. If the regulation applied only to systems serving 3,300 persons or
more. then incremental cost per case avoided is only $1.74 million. By adding in systems serv-
ing 1,000 or mor" persons, the incremental cost-per.case avoided more than doubles, reachiDg
$3.76 million, ard this doubles again if systems of 500 or more persons served are included.
Finally. by adding the smallest systems (serving between 25 and 500 persons), the iDcremental
cost is over $16 millioD per case avoided.
As shown by rhe incremental perspectives provided in Tables I aDd 2, the cost.effectiveness
of a radon MCL declines considerably as the MCL becomes increasingly stringent, or if the
smaller sized communities are forced to comply. Table 3 provides a glimpse of how the cost-
effectiveness vades if one simultaneously considers both stringency and community size.
Clearly, gains an realized by considering the various regulatory options in this, more thorough
fashion.
For example, If one were to believe that the cost.per-case avoided should not exceed $5 mil~
lio", then the datil suggest the most suitable MCL may be 1,000 pCiIl.. (ifapplied to all CWS, as
iDdicated by the incremental values in Table I). Alternatively, if the MCL is set at 300 pCiIl..,
then one might e'Jasider waiving systems of less than] ,000 persons served from the regulatory
requirements (as per the incremental results in Table 2). Upon examiDing combination options
as per Table 3. ol1e might be drawn to considering an MCL of 700 pCiIl.., with a CWS size cut.
off of 500 persor s served. Regardless of the perspective taken, the incremental evaluation indi~
16 PUBUC WORKS MA~'AGEMENT '" POLley I July 2005
Table 2: Incremental Analysis of Cost per Fatality Postponed: Different System Size Cutoffs for an MCL or
300 pCi/L (millions 1997 dollars)
Average Cost ptr Incremental Cost per
MeL Option Fatality Postponed ($) Fatality Postponed ($)
MeL = 300 pCiIL; systems ~ 3.300 served 1.74 1.74
MeL =300 pCiIL; systems i:! 1,000 served 3.41 3.76
Met =: 300 pCilL; systems ~ SOO served 4,34 7.53
Met = 300 pCiIL; all systems 7.24 16.35
Table 3: Incremental Analysis of Cost per Fatality Postponed: Different MCL and System Size OptiOfl5 Com-
bined (millions 1997 dollars)
Averagl!' Cost ptr Incremental Cost peT
Met Option Fataliry Postponed ($) Fatality Postponed ($)
Met = [.000 pCiIL: sYi'ltems ~ 3,300 served 1.39 1.39
Met = 700 pCiIl.: systems:2: 3,300 served 1.55 1.71
Met = 700 pCilL: systems ~ 1,000 served 2.22 2.45
Met = 700 pCiIL; systems ~ 500 served 2.48 4.59
Met = 700 pCiIL; all systems 3.75 6.81
MCL = 500 pCiJL: all systems 5.01 6.89
MCL = 300 pCiIL; all systems 7.24 12.20
cates clearly that the MCL as proposed (300 pCiIL applying to all CWS size categories) is not a
relatively cost-effective option for protecting public health.
MONETIZED BENEFIT-COST COMPARISONS I
!
The above cost-effectiveness assessment begs the question UWhat cost per premature fatality i
I
avoided is too high?" and, in turn, leads to the need to consider evidence of monetary values for I
the willingness to pay (WTP) to enjoy such risk reductions. Herein empirical evidence from the 1
body of research on VSL becomes relevant. EPA currently applies a VSL estimate of $5.5 mil-
lion, in year 2000 dollars (Inside EPA, 2004). This is equivalent to $5.1 million in 1997 dollars 1
and is consistent with the cost data used in Vitaliano (2003) and here. ,
Next, some adjustment to this value of $5.1 million is suitable because the VSL estimates !
pertain to immediate death of a person of or near median age (e.g., late 30s), thus reducing the i
victim's life expectancy by about 40 or more years. In contrast, a radon-induced lung cancer I
,
would involve a latency period of several decades and reduce a typical victim's life expectancy j
.
by fewer than 20 years. Simply discounting to account for a 20-year latency period (but not I
accounting for the difference in life years saved), one would obtain a more radon-suitable ,
adjusted VSL of $ 1.3 million or less (in 1997 dollars). i
Using the VSL information leads to examining the Vitaliano (2003) analysis from a benefit- !
cost perspective. As above, total benefits were calculated by multiplying the NRClEPA unit risk .
factor that Vitaliano began with (8.93E-09 risk per pCiIL annually) by the population served by I
I
systems with radon concentrations exceeding a given MCL option. Vitaliano then multiplied i
these case estimates by a range of VSL estimates with a high of $5.8 million and a low of $2.4 I
million. His lower end VSL ($2.4 million) is used for convenience, even though the estimate
may be elevated relative to the discussion above. The current EPA estimate of $5.1 million
>
(1997 dollars) applies as the high end. This is a high-end VSL forthe radon application because ,
it does not account for the delay in reali2ing the benefit, nor the lessernumber oflife years saved i
I
relative to the risks underlying the EPA base case VSL estimate, ,
~.
!
4
,
?,
~
,
!
i
.j
Raucher. Harrod' COSTS AND BENEFITS OF RADON 17
Table 4: I nc~mentaJ E,en~nts and Incremental Net Beneftts by MCL (millions 1997 dollars)
300 "CVL 500 pCi/L ($) 700 pCi/L ($) 1,000 pCilL ($)
Incremental benefit-VSL = $2.4m. 0.14 0.10 0.22 0.30
Incremental benefit-VSL = $S.lm. 0.29 0.22 0.47 0.64
Incremental net benefit- v'SL = $2.4m. (0.15) (0,14) (0.02) 0.09
Incremental nce benefit- \lSL = $.5. 1m. 0.01 (0.02) 0.23 0.43
Using the Vitaliano-based estimates for total benefits (using the NRCIEPA risk factor), we
then break out the ref;ults to provide an incremental perspective. Thus, incremental benefits are
calculated as the additional benefits attainable by moving from a 1,000 pCiIL MCL to the next
most stringent option.
Incremental benefits and costs are based on additional water systems becoming subject to
the increasingly stringent MCL options. Once a CWS is picked up by the analysis (i.e.. once the
community's radon concentration exceeds an MCL option), no changes were assumed in risk
levels in that community for more stringent MCL options. Therefore the number of fatalities
avoided does not change between MCLs for a given CWS, onCe it hits a regulatory threshold.
Although this is a simplifying assumption, it is not entireiy unrealistic. As Vitaliano (2003)
notes. due to the nature of radon removal technology, the incremental cost of removing addi-
tional radon is very s naIl. Therefore it is reasonable to assume that a facility would remove most
(e.g., 90% to 99%) ofche radon in its raw water, effectively reducing the risk to near zero, once
the system was SUbjf:ct to an MCL. Therefore the sole difference in costs and benefits between
MCL options arises Tom the number of systems that would be subject to regulation under each
scenario. .
Table 4 summari:~es incremental benefits, as well as incremental net benefits. of four MCL
options. Incrementa' costs increase dramatic,ally as the MCL b~comes more stringent. with an
over five-fold diffe",nce between the incremental cost at 1 ,000 pCiIL and 300 pCilL. However.
the difference in incremental benefits between 1,000 pCiIL and 300 pCiIL is a little over two-
fold.
Due to difference 5 between rates of increase of incremental benefits and costs, incremental
net benefits decrease as the MCL is made more stringent. Under the $2.4 million benefit value
per case avoided, the MCL option of I ,000 pCiIL is the most justified (I.e., it maximizes social
welfare or net social benefits). The high-end VSL suggests an MCL of 700 pCiIL might maxi-
mize net benefits.
ACCOUNTING FOR SYSTEM SIZE IN THE BCA APPROACH
An additional po ot to consider in comparing benefits and costs is the need to break the anal-
ysis down by system-size category. As Vitaliano (2003) points out, drinking water treatment
costs (the costs of compliance) tend to be relatively high on a per unit basis in small (rural) sys-
tems, Therefore, households served by smail and/or rural water systems typically bear a dispro-
portionately high share of the regulatory costs relative to customers in larger systems that enjoy
economies of scale in treatment.
Although a uniform MCL for small and large systems does provide households with roughly
"equal health protection" (i.e., comparable-risk reductions) regardless of where they Jive or the
size of the CWS th, t serves them, the cost burden each bears can be significantly different. In
essence, any given MeL is likely to impose much higher costs perunit of risk-reduction benefit
received on househ<)lds served by small systems relative to the costs~per-risk reduction borne
by households in larger communities.
When EPA pres< nts its SCAs. it typically provides national aggregates of benefits and costs.
Under the national perspective, small-system benefit-cost impacts are buried under the prepon-
,
18 PUBLIC WORKS MANAGEMENT & POLICY I Ju]y 2005
Table 5: Average Radon Concentrations, by System Sizes, of29 NYS Systems Exceeding potential MCLs (pCV
L)
Syst~m Siz~ (popldation st!rv~d) 301J pCVL 500 pCi/L 701J pCVL J.OIJOpCVL
System size
>3.300 810 985 985 1.115
1.001-3.300 789 988 1.178 1.545
501.1.000 609 668 7fIJ -
<500 2.224 2.957 4.493 6.378
All system sizes ].]07 1.4]6 1.940 3,084
% CWS subjecl to rule 100 69 41 21
Table 6: Incremental Net Benefits. by System Size Category, for MCL or300 pCiIL (millions of 1997 dollars)
VSL = $5.1 MiUiorf ,
Sysum Sizt VSL = $2.4 Millioll ,
I
l
>3.300 om 0,06 1
1.001-3.300 (0.08) 0.01 i
,
501-1.000 (0.02) (0,02) l
<500 (0.05) (0.05) l
,
Table 7: Most.Stringent MCL at Which Net Social Benefits Would Be Maximized, for Lower and Upper I
I
Bound VSL Estimates. Based on Vltaliano's Cost per Premature FataJity Cutoffs I
VSL = $2.4 Million VSL = $5.1 Million
Sysremsize 1
>3.300 300 pCilL 300 pCilL
1.00]-3.300 1.000 pCilL 300pCilL
501.1.000 > 700 pCilL >700pCilL
<SOO > 1.500 pCilL > 1.500 pCilL
All system sizes 1,000 pCiIL or above 700 pCilL
derant share of total costs and benefits borne by larger systems. But BCA results should also be t
made available on a system-size basis, so that the benefit-cost tradeoffs borne by small-system
customers can be readily evaluated. These may reveal that the cost per unit of risk reduction
(e.g., the cost per cancer fatality avoided) may be unreasonably large for households served by
small systems. This type of finding can then be used as a basis for considering alternative
MCLs, or providing supportive compliance funding to small systems, or both.
Table 5 sununarizes average radon concentration of systems that would be subject to each
regulation, by system size, for the communities in Vitaliano's (2003) data set.
The smallest systems have the highest radon concentrations but the smallest population
served, thus decreasing the incremental benefits. Therefore. incremental net benefits are very
low for the smallest systems. Table 6 summarizes incremental net benefits, by system size. for
the MCL proposal at 300 pCi/L. The results show positive incremental net benefits only for the
larger systems in this data set (those of 3,300 or more served, using the adjusted VSL of $2.4
million to monetize risk reductions, or systems of 1,00 I or larger when the higher VSL is
applied). Again, the EPA risk factor and Vitaliano's (2003) cost estimates were used in these I
calculations.
Although this research advocates the use of incremental net benefits to detennine how to
maximize social benefits, Vitaliano (2003) uses the concept of break-even VSL to determine I
whether 300 pCiIL can be justified. Therefore, for comparison's sake, we evaluate the break-
even VSL across system sizes and MCLs. to evaluate whether the potential benefits from radon
mitigation exceed benchmark VSLs of $2.4 million as the lower bound and $5.1 million as the i
upper bound, in which case the social benefits of regulation would outweigh the costs. Vitaliano 1
(2003) calculated break-even VSL as the average cost of compliance per premature fatality I
avoided. I
~
I
,
!
.t
"
} Rauchcr. Harrod I COSTS AND BENEFITS OF RADON 19
.
~
.
" Table 7 show,; the most stringent MCL for which the social benefits, defined by the lower and
N
i upper bound VSL estimates used here of $2.4 and $5.1 million, respectively, would outweigh
t the costs by the greatest degree. Assuming the upper bound VSL estimate, if one looked across
i? all system sizes, it would appear the optimal MCL would be 700 pCiIL. However, for the small-
,
.. est size categOl):, the only community with positive net benefits is a CWS with radon at morc
, than 11,000 pCL L (and the CWS with the next highest radon level, of I ,505 pCilL, shows nega-
..
tive net benefits even using the high-end VSL and a potential MCL of 1,000 pCiIL).
"
NEW PERSPECTIVES ON THE RADON RISK FACTOR:
~: NONLINEARITY OF THE DOSE-RESPONSE FUNCTION
. The above analysis is based on the NRCIEPA risk factor for radon in drinking water, based
on the scientific: evidence available in 1999. Several advances in the science of radon risk
assessment have ensued since that analysis. The first advance is a significant new study at low
, doses and dose-rates by Monchaux and Morlier (2002) and Monchaux (in press). These publi-
cations allow ar examination of the exposure-response curve at exposure-rates that begin to
approximate background exposures and that 8rc much more relevant to exposures from house.
hold water than are the occupational mining studies upon which the NRCIEPA risk estimates
.. arc based. The second important scientific advance is the finding by Moolgavkar, Cross,
t Luebeck, and D,'gle (1990) and Moolgavkar, Luebeck, Krewski, and Zielinski (1993) that the
bulk of the risk from inhaled radon may be due to promotional effects rather than initiation
effects. This latt,,, finding in particular has significant implications for the assignment of cessa-
tion and latency lags, as well as the shape of the dose-response relationship.
, The &tudies by Monchaux et a!. (2002) and by Monchaux (in press) appear to offer signifi-
cant improvements in the understanding of effects of radon at low exposures and exposure-
:~ rates. These stuclies extend the exposures and exposure rates down to levels that are an order of
magnitude lowe:-than any conducted before, encompassing expo"sures in home air; the previous
studies in animals were at exposure levels significantly above those found in the home. The new
studies show tw J important differences from past studies: (a) they indicate nonlinearity in the
risk coefficient at low total exposure, with linearity producing a significant overestimate of
effect at these 10?,I exposures, and (b) they demonstrate that the inverse dose-rate effect, wherein
lowered exposUlc rate produces higher probability of cancer, is confined to regions of exposure
typical of mining populations but not to exposures at levels found in homes. The latter finding is
the most significant here, especially as it contributes to the first finding because it demonstrates
the inverse dose-rate effect is reversed at the low exposures found in homes.
This finding in turn, is important because the EPA assumes that the risk values can be taken
from the lowest exposures in the mining data and may even underestimate risk at exposures
found in homes (based on the argument that the inverse dose-rate effects implies the value of
excess absolute risk [EAR] per working level month [WLM] increases with decreasing expo-
sure). However, the results of the Monchaux group (2002) show otherwise. Note that in the
upper exposure, (characteristic of the mining population), the inverse dose-rate effect does
occur. At lower exposures, however, the traditional dose-rate effect occurs (Le., decreasing
dose-rate decref.ses the risk coefficient). The newer data show a clear decrease in EAR per
WLM by at leaS! a factor of 3 or 4 at exposures on the order of 10 WLM. This decrease is likely
to be significanl.ly larger for the incremental risk imposed by radon released from drinking
water. As a point of reference, a 70+ year lifelong exposure to drinking water at a radon concen-
tration of 1,000 pCiIL is roughly equivalent to an accumulated lifetime exposure level of 1
WLM. At exposure levels of I WLM or less, the NRCIEPA approach may overstate risks by a
factor of 5 or more.
These new stldies. along with any other scientific inquiries of merit that may have come to
light since the NRC review published in 1999, need to be reviewed and carefully considered for
future radon-related regulatory policy actions. The rationale for these studies would be to
reduce apprecial)ly the implied levels of risk that are associated with radon at levels relevant to
. .
~O PUBLIC WORKS MANAGEMENT & POLICY I July 2005
Table 8: Incremental Net Benefits of RadOb MCL Options In 29 NYS Communities. Using Nonlinear Dose.
Response Implied by Monchaux and Marlier (ZOOl) and Monchaux (2004) (mllUons 1991 dolJars ptr )ear}
MCL Option VSl. = $2.4 mi/llcm VSL = $5. J million
1.000 (0.15) (0.08)
700 (0.19) (0.14)
500 (0.23) (0.20)
300 (0.26) (0,22)
U.S. households, and therefore have significant implications for the benefit-cost evaluation of
regulatory alternatives as detailed below. Thus the scientific community and the policy makers
who will make regulatory determinations need to consider fully and appropriately the merits,
limitations, and suitable role of this emerging research for standard setting. The issue of using
nonlinear dose.response functions in lieu of the traditional default assumption of linearity is a
controversial scientific and policy matter but one that deserves serious consideration for radon,
in view of emerging scientific evidence.
What does the new risk perspective of nonlinearity in dose-response mean for the radon
BCA presented above? It implies that the risk estimates (hence the estimated benefits) would be
overstated by a factor of 5 or more. For example, the incremental cost per premature fatality
avoided would now be more than $60 million for moving from an MCL option of 500 pCilL to
300 pCiIL (and over $10.5 million per case for an MCL of 1,000 pCiIL versus no MCL, based
on the systems in the data set). In terms of the BCA, Table 8 shows the incremental net benefits
using the nonlinear dose-response model are negative for all MCL options evaluated, implying
an MCL greater thlll> 1,000 pCiIL would be warranted. Therefore, the new scientific evidence
on the risks posed by radon in drinking water suggest that the rule as proposed would be a wiry
expensive investment in public health protection and. that the benefits would be outweighed by
the costs.
INTERPRETING THE RADON RISK FACTOR:
NETTING OUT THE RISK POSED BY TOBACCO SMOKING
An additional consideration is that the NRClEPA risk factor reflects a weighted average of
separate risk factors for smokers and nonsmokers. There is a strong synergistic interaction
between tobacco smoking and the lung cancer risk associated with exposure to radon. The sci~
entitic data are well enough established that the NRC (1999) estimated radon risks to nonsmok-
ers at an order of magnitude lower than risks borne by smokers. U.S. EPA's (1999) estimates
reflect a weighted mix of these risk factors, but the agency's approach attributes to radon a con-
siderable portion of risk that is more suitably assigned to tobacco, For example. the estimated
median risk among nonsmokers is 2.5 X 10' at a lifetime exposure to radon in drinking water of
300 pCiIL. The risk is roughly 60% lower than the mix of smoker and nonsmoker risk factors
the EPA applies to the general population.
The EPA and other risk estimates described above all reflect risk to the general population,
including to both tobacco smokers and nonsmokers. Thus, the risk estimates above attribute to
radon some measure of risk that is more suitably attributed to tobacco. A key policy issue is
whether it is more suitable to examine radon risks using risk assessment data for nonsmokers (as
applied to the entire population). Iftllis perspective is applied (I.e., assigning the net-of-tobacco
risk factor to the entire population rather than only to nonsmokers), then the total risk levels are
reduced by almost a factor of 3. The reduction means that the costs per case avoided, as noted
above, increase by a factor of 3, and the benefits estimates decline by a factor of 3. This sug-
gested approach of basing the radon regulatory analyses on the risk factor for nonsmokers
(applied to both smokers and nonsmokers) is a matter of policy choice, and would be consistent
,
Raucher. Harrod I COSTS AND BENEFITS OF RADON 21
with national antismoking effoItS, under which a guiding principle is to force smokers to bear
the burden of theu own choices relative to using tobacco products.
If one combines the impact of netting out of tobacco-attributable risks with the nonlinear
dose-response interpretation for radon at in-home exposure levels, the impact is compounded.
In other words, the 3-fold impact associated with correcting the risk estimates to net out tobacco
conUibutions, wh"n combined with the S-fold impact from the recent evidence regarding the
shape of the dose.response model, results in a IS-fold reduction in the level of risk (cases
avoided) compared to the results presented above. For example, the incremental cost per prema-
ture fatality avoided would now be over $180 million for moving from an MeL option of 500
pCi/L to 300 pCI/L (and over $31 million per case for an MCL of 1,000 pCi/L versus no MCL,
based on the systems in the data set).
CONCLUSION
The proposed f,deraJ standard for radon in drinking water has been controversial for many
years, and is agail1 a highly relevant policy matter because finalization of the rule is anticipated
in the coming yea: or two. Vitaliano (2003) provides some useful insights of regulatory rele-
vance but is limiwd in several important manners. This article has revisited and embellished
Vitaliano in order to draw a more in-depth and policy-relevant set of insights.
First, by applyi Jg an incremental perspective to the cost-effectiveness and benefit~cost anal-
yses, this examim,tionshows MeL options less sUingent than the one proposed by the EPA
appear to make more sense in terms of the efficiency of publlc health protection. Whereas
Vitaliano (2003) s"ggests that, in total, benefits may well exceed costs for the proposed radon
MCL of 300 pCI/I., the incremental analysis shown above reveals-using the same underlring
data-that a less stringentMCL is more cost-effective and provides greater net social benefit.
Second, this article's approach also shows how disaggregating the analysis to account for the
size of the community water system reveals important insights about the efficiency and equity
implications ofha"ing the MeL apply uniformly to all CWS. The net benefits and cost per fatal-
ity postponed tene to be much higher for the smaller systems and raise key policy issues about
the eql1ity of alteroative rulemaking approaches. On one hand, a unifonn standard imposes a
much higher cost per household (and cost per level of household risk reduction) in small sys-
tems than in larger oncs that can be viewed as an unfair cost imposition on residents in srnaller
entities. On the ott er hand, having different standards applied to different-sized systems creates
a possible perception that less protection is being provided to residents of smaller communities.
Although in this case, small communities ca.n always opt on their own to reduce radon concen.
trations in water to whatever MCL is applied to larger systems.
Third. the authors' work offers new insights and perspectives on the risk assessment for
drinking-water rajan. showing the considerable extent to which the cost-effectiveness and
benefit-cost findings based the current NRCIEPA risk factors are affected if new scientific evi-
dence is considered regarding the nonlinearity of the dose-response function. Assllming the
recent scientific c\ idence ofnonIinearity is robust enough to be taken fully into policy consider-
ation, the level of 11Sk currently assigned to the relevant levels of radon exposure in U.S. homes
probably is overstated by a factor of 5 or more. An overstatement means that the proposed MCL
is probably too stringent by a considerable degree, based on typical benefit-cost criteria.
Finally, the examination presents an alternative policy perspective with respect to whether a
net-of-tobacco risk factor should be applied to all radon-exposed persons. Applying this policy
perspective of attributing to radon only the radon-relevant portion of the risk (rather than also
embedding tobacco-attributed risk), we show that the benefits estimates are reduced by one
third.
When the abov" perspectives are applied, eitherindividually or collectively, the new risk and
benefit-cost insights derived suggest that a less stringent MCL should be considered by the
EPA. in lieu of th" 300 pCilL level initially proposed.
.
1" 111 II' \\ lll~""" ,\I:\N,\t il"M".N'1 &. l'OI.It'Y I July 2005
Noles
I. Sometimes the ratio ofbenellts to costS (SIC) is used as a way ro evaluate a policy. If the B/C ratio is greater than I.
that means that benefits outweigh costs. The use of a tile ratio is valid for considering alternative investments because
one can try to identify the option the yields the greatest ratc of return (highest SIC ratio). However. for regulatory poli-
cies like setting an Maximum Comaminant Levels (MeL), it is more appropriate to apply the net benefits concept (bene-
firs minus costs) radlcrthan the SIC ratio. This is because the objective is to identify the MCL that maximizes social wel~
fare (net benefits) and not to develop an investment strategy that maximizes rates of return.
2. MCL options sbove 1,000 pico.curies per liter (pCiJl.) are worth evaluating too. but the radon levels for the 29
communities provided only limited observations above that level.
References
Cohen, B. L. (1989). Expected indoor222 Rn levels in counties with very high and very low tung cancer rates. Health
Physics, 57 (6),897-901.
Cohen. B. L. (]995). Test of the linear no.threshold theory of radiation carcinogenesis for inhaled radon decay products.
Health Physics, 68, 157-174.
Inside EPA. (2004, May 19). EPA /OWus bt!nefirsfor ktyair ~gulatiol1J ill economic tests. Washington. DC: Author.
Monchaux. G. ([0 press). Risk of fatal lung tancer in radon-exposed rats: A re.analysis of French data. Radiation
ReSt!arch.
Monchaux, G.. & Morlier, J.p' 2002. lnnuenceofexposureraceon radon-induced lungcancu in rats. Journal afRadio.
logical Protection, 22, A81.A87, 2002.
Moolgavkar, S.. Cross. F., Luebeck, G., &: Dagle G. (1990). A Iwo.rnutation model forradon.induced lung tumors in
rats. Radiation Research, 12/, 28-31.
Moolga....kar. S., Luebeck, E.. Krewski, 0., &Zielinslci, 1. (1993). Radon, cigarette smoke. snd lung.cancer: A re-analy-
sis of the Colol1ldo plateau Uranium miners' data. Epidi!miology, 4, 204-217.
NalkmaJ Research Council. (1999). Risk assessment of radon in drinking water: Committee on the Risk Ass~ssmi!nr of
Exp.osures to Radon in Drinking Wmer. National Academy of Sciences, Board ofRacfiation Effects Research, COm-
mission on Ufe Sciences. National Research Council. Washington. DC: National Academy Press.
Raucher. R., & Drago, J. A. (l992. March). Estimating the cost of compliance {or the drinking ~ter standard forraoon.
JournaL AWWA. SS-6's.
Raucher, R., Castillo, E. T., Dixon, A., Breffle, W., Waldman, D., &: Drago. l.A. (J 995): Estimating the cost of compli.
ance witll drinking water sta.ndards: A IIlU'S guidi! (ISBN 0.89867.828-5). Denver, CO: AWWA Research
Foundation.
Stratus Consulting. (2000. January 5). Start! response to the proposed mulrimedia mitigation program option. Report
prepared by StratuS ConsultJng Inc. for the AWWA Government Affairs, Boulder, CO.
U.S. Environmental Protection Agency. (1999. November 2). National primary drinki/1g water regulations; Radon.
222; proposed rule (40 CFR Parts 141 and 142). Washington. DC: Federal Register.
U.S. General AccountingOffice. (2002. February). Revisions toEPA 'seost allalysisforthe radoll nile wOllldimprove Irs
credibiliry and IIsefulltess (OAO.02.333). Washington, DC: Author.
VitalizlOo, D. F. (2003). Costs nnd benefits of mitigating radon in drinking Water. Public Works Managt!mt!flt &: Policy, 7
(4).291.303.
D East Valley
'Nater District
-
serving Our community for Over 50 YeelrS
Board of Directors
President
George E. (Skip) Wilson
Vice President
Kip E. Sturgeon Ju:y 7, 2005
Donald D. Goodin
Edward S. Negrete
Glenn R.. UghtfoOt Ka,thJeen Rollings-McDonald, Executive Officer
Robert E. Martin Local Agency Formation Commission
General Manager Ccunty of San Bernardino
Paul R. Dolter 175 West Fifth Street, Second Floor
District Engineer Saa Bernardino, CA 92415-0490
Brian W. Tompkins
Chief Financial Officer Re: LAFCO 2919 - San Bernardino Valley Water Conservation District
p.o. Box 3427 Dear Ms Rollings-McDonald:
San Bernardino,CA 92"'13
3654 Highland Avenue Reference is made to LAFCO's current service review of the San Bernardino
Suite 18 Valley Water Conservation District (LAF.CO 2919). You recently made a
'land. CA 92346 presentation on this .issue at the Upper Santa Ana Water Resources Association.
1'I10ne: (909) B89-950 I Following your preseJ;ltation, you stated that the Commission had requested
comments from the various water agencies' in this basin, especially those' that
Office Hours: op'~rate within the boundaries of the Water Conservation District. The Board of
Monday - Friday Di::ectors of the East Valley Water District has reviewed this issue and the various
opjons being considered by the Commission and wishes to offer the following
8:00 am . 5:00 pm comments, which were approved by the Board at its regularly scheduled meeting
On July 12,2005.
I) East Valley Water District strongly recommends that LAFCO reject the
option for consolidation of the Water Conservation District with the San
Bernardino County Flood Control District. In our view, these two agencies
have distinctly different functions and operational goals. An example of
this concern is the ongoing problems we are experiencing with water quality
degradation at the Seven Oaks Dam. While the dam is operating effectively
from a flood control perspective, it has created serious problems from a
water supply and water quality standpoint
2) With respect to all other options being considered by the Commission, the
District's view is that the existing organization and sphere of influence of
the Water Conservation District is satisfactory and should not be subjected
to any modifications. East Valley Water District is satisfied with the
operation of the Water Conservation District and their willingness to work
-
Administration (909) 885.4900, Fax (909) 889-5732 . Engineering (909) 888-8986, Fax (909) 383-1481
Customer Service & Finance (909) 889-950 I, Fax (909) 888-6741
-
LAFCO-2919
Page Two
July 7, 2005
with other agencies on regional problems. We are plea:sed with many of the regional
projects and agreements that are being forged in the Bunker Hill Ba:sin area with the
intent e,f creating effective water management programs. The Water Conservation
District has been an integral part of many of these agreements. It is also our
understanding that the Water Conservation District is nearing a settlement with the San
Bernardino Valley Municipal Water District regarding their competing water rights
applications. This has been a major concern of our District and we are encouraged that a
resolution of this dispute appears to be imminent.
3) If the Commission should decide upon some form of consolidation, we strongly
recommend that the revenue stream from existing mining operations be committed to
groundwater recharge and Basin Management programs. The use of these funds for any
other pupose would be highly Qbjectionable.
We wish te, thank you for the opportunity to comment on this very important matter being
considered by the Commission. If there is any further information that we can provide, you in
this matter, we encourage you to contact our staff.
Sincerely,
cKGC L...... -'---.........
Kip Sturgeon
Vice President
-
..
LIJCAL AOENCY FORMATION COMMISSION
COUNTY OF SAN BERNARDINO
17S west Fifth street. Second Floor
San Bl~mardlno. CA 92415-0490 . (909) 387-5866 . Fax (909) 387.5871
E-mail; lafcO@lafco.sbcounty.gov
www.sbdafco.org
DATE; S''''!'EMBER 13, 2005 ~~
FROM; KATHLEEN ROLLINGS-McDON , Exe~ v~. 'mc~r
TO: U)CAL AGENCY FORMATION COMMISSION
SUBJECT: AJ~eDda Item #7: Consideration of LAFCO 2919 - Service Review and
Sphere of Influence Update for San Bernardino Valley Water
Conservation District
RECOMMENDATION:
.
If the CommisBion supports the staffs position that the concept of a basin-wide
water conservation entity should be pursued, it is recommended that it support
the ultimate consolidation of the San Bernardino Valley Water Conservation
District and the San Bernardino Valley Municipal Water District, by taking the
following actions;
1. Determine that the designation of a zero sphere of influence for the San
Bernardino Valley Water Conservation District is statutorily exempt from
environmental review and direct the Clerk to me a Notice of Exemption
within five days;
2. Designate a zero sphere of influence for the San Bernardino Valley Water
Conservation District indicating that it is the position of the Commission
that the District should ultimately consolidate with the San Bernardino
Valley Municipal Water District;
3. Direct the Executive Officer to establish a committee to review the possible
consolidation of the San Bernardino Valley Water Conservation District with
the San Bernardino Valley Municipal Water District, to be made up of the
LAFCO Executive Officer and the General Manager, or designee, of the San
Bernardino Valley Water Conservation District and the San Bernardino
Valley Municipal Water District; and a representative from each of the major
water stakeholders identified as: the City of Redlands, the City of San
Bernardino Municipal Water Department, East Valley Water District, Bear
Item ~7 - LAFCO 2919
September 13, 2005
Valley Mutual Water Cornpany, and the City of Riverside, to develop the
parameters needed for consolidation. A report of the terms and conditions
needed for such a consolidation, developed by the Committee, will be due
back to the Commission no later than the February 15, 2006 hearing.
4. Adopt LAFCO Resolution #2893 setting forth the Commission's fmdings and
determinations related to this consideration.
However, if the Commission determines that the municipal service review shows
affirmation of the District's existing sphere of influence or a coterminous sphere of
influence is appropriate, it may take the following actions to close this
consideration:
1. Determine that the affirmation of the District's existing sphere of influence
or the amendment to a coterminous sphere of influence through LAFCO
2919 is statutorily exempt from environmental review and direct the Clerk to
fIle a Notice of Exemption within five days;
2. Make the findings related to a service review required by Government Code
Section E,6430 and determine that the sphere of influence for the San
Bernardino Valley Water Conservation District should be affirmed.in its
present configuration or amended to be coterminous with the District's
boundari.es; and,
3. Defer adoption of the resolution making these determinations to the consent
calendar for the October 19, 2005 Commission hearing.
BACKGROUND:
At the August 17th hearing, the Commission continued consideration of LAFCO
2919 to the Se::>tember hearing at the request of the San Bernardino Valley Water
Conservation District (hereinafter SBVWCD). Its request was to allow the District
suffIcient time to respond to the Staff Report presented. A copy of the Staff Report
for the August Hearing including only its Attachment # 1 maps, Attachment #9
LAFCO Environmental Consultant responses, and Attachment # 10 the draft
resolution is p)~ovided as Attachment # 1. The entire report is available on the
LAFCO web site.
Included with this report, as Attachment #2, is the SBVWCD's response to the
August Staff Report which also provides additional information on its position
related to the options presented by staff. The District's response indicates that
new information is available since the prior report related to a Settlement
Agreement with San Bernardino Valley Municipal Water District (hereinafter Muni)
and the Western Municipal Water District regarding their competing water
interests and ':0 eliminate protest to the various Water Rights Applications flied
with the State Department of Water Resources. This is important new information
2
Item 87 - IAFCO 2919
September 13,2005
for the Commission's consideration. This Settlement Agreement (included as
Exhibit A in the: District's response) and its Exhibit "A" provides that the protests
to the Water Rights Applications for SBVWCD and Muni and Western Municipal
Water District 'will be rescinded. The terms of the Settlement Agreement also
require that the: Seven Oaks Accord will be modified to include SBVWCD.
The District identifies in its materials that the staff has omitted critical information
related to the C'pper Santa Ana River Wash Land Management and Habitat
Conservation Plan, also known as the "Wash Plan" under the frrst factor required
by Government Code Section 56425. Staffs response is that the Wash Plan was
discussed, but not in the context of existing and planned land uses related to the
District. The land use authorities for the territory of the District in its entirety are
the Cities of Hi:shland, Loma Linda, Redlands, San Bernardino and Yucaipa and
the County of San Bernardino. The land use authorities within the Wash Plan are
the Cities of Highland and Redlands and the County of San Bernardino. The
District has no land use authority within this area known to staff; therefore, the
response provided in the previous materials described the myriad of land use types
available throughout the area of the District's jurisdiction. It is the staffs
understanding that the District has spearheaded this effort to identify future
recharge and mining areas given the sensitive environmental nature of the Santa
Ana' River Basin.
However, the response by the District still does not answer the basic questipn
asked by staff since the inception of this review, which is:
"Why are there three overlapping agencies within the eastern portion of the
Bunker Hill Basin authorized to provide the same service - water
conservation - and is this division appropriate?"
While the Distlict's response indicates that "if it ain't broke don't fIx it" is the
appropriate position to take, staff believes that the answer is that such a
duplication is not appropriate. The staff's position remains that groundwater
recharge/repknishment efforts for the entirety of the Bunker Hill Basin are the
appropriate service area to be considered. Therefore, in its opinion, the options for
the Commission remain:
l. Expand the sphere of influence of the SBVWCD to include the whole of this
Basin; cr,
2. Evaluab~ the possibilities of consolidating this agency with one of the other
entities who have authority to perform groundwater recharge/replenishment
activities throughout the Bunker Hill Basin.
In addition, two new questions were asked of staff at the August hearing:
3
Item n - LAFCO 2919
September 13, 200S
1. Who are the members of the Upper Santa Ana Water Resources Association
to which the question of support for the options was posed?
2. Is there a potential for double taxation as outlined in the City of Rialto
response?
In response to Question #1, the members of the Upper Santa Ana Water Resources
Association are identified in its "Articles of Association", copy included as
Attachment #3, as the water producers within the Upper Santa Ana River
watershed. These agencies include:
East Valley Water District City of Rialto
West Valley Water District City of Riverside
Elsinore Valley Municipal Water District Bear Valley Mutual Water Company
San Bernardino Valley MWD Riverside-Highland Water Company
Western Municipal Water District Fontana Water Company
San Bernardino Valley WCD County Flood Control District (by the
City of San Bernardino Public Works Department)
Municipal Water Department Robertson's Redi-Mix
City of Redlands
.Additional participants in the meetings of the Association include the State
Department of Health Services, Santa Ana Watershed Project Authority,
Consultants, the California State University San Bernardino's Water Resources
Institute, and others. The options presented to the Commission were reviewed
with this Association in an effort to reach the water producers within the territory
of SBVWCD and their individual positions on these options requested. However,
since the publication of the Staff Report for the August hearing, the positions of
some of these agencies have been modified. The City of Riverside has shifted its
position to one of supporting the consolidation with Muni through discussions
with Muni and Western Municipal Water District. A copy of its letter and the draft
memorandum of understanding are included as Attachment #4 to this report. The
following is a revised listing of the water producers' positions on the options before
the Commissicn:
Amount of Water Pumped Amount of
Service Review Option from January 1 , 2004 Groundwater
Waler Producer Chosen lhrouah December 31, 2004 Assessment Paid
East Vallev Water District Suooorts Status Quo 22,755.2 $131,723.01
Citv of Riverside Supports consolidation
with Muni 19,973.1 $115,917.15
Gage Canal Company
(understood to be " part of No separate position
the Citv of Riversid3) orovided 10,717.6 $40320.41
Citv of Redlands Supports consolidation
with Muni 17.320.1 $95.403.48
Citv of San Bemardino Supports consolidation
with Muni 7.055 $40.917.82
4
Item iI7 - LAFCO 2919
September 13, 200S
Meeks & Daley (primary
owners are City of Riverside
and Elsinore Valley
Municioal Water District) Supports Status Quo 2,037 $9 336.63
SBVMWD No oosition 776.2 $4,667.80
Bear Valley Mutuai Water Supports consolidation
Comoanv with Muni 0 $0.00
Luaonia Water Comranv Supports consolidation not identified on listina
with Muni
Redlands Water Comaanv Supports consolidation nat identified on Iistino
with Muni
In response to Question #2, regarding the possibility of double taxation, the staff
response is that the situation exists today within the boundaries of the SBVWCD
and Muni. Municipal Water District law allows for the charging of an assessment
or a special tax, through a separate review and protest process, which could be
proposed within the area where the SBVWCD currently charges a groundwater
assessment or outside it. In the response provided by the SBVWCD, Exhibit B
illustrates that in 1980 a water production assessment was considered by Muni in
order to [manct: needed capital facilities. No such tax was imposed; however, the
possibility remains unchanged by the potential consolidation of the agencies.
However, the question as outlined in the City of Rialto letter indicates its concern
that.ff the SBVWCD was consolidated with Muni, it would allow Muni to charge a
pump tax, in the same manner as the existing pump tax imposed by SBVWCD.
Such a change would not occur as a result of this consolidation.
CONCLUSION:
In conclusion, ':he staffs position remains unchanged by the additional materials
submitted by SBVWCD. The staff applauds the efforts of the District in
negotiating its Settlement Agreement related to the Seven Oaks Accord, but on the
basis of the elements outlined in the August hearing staff report, outlined below,
the position remains to support a further review of a potential consolidation.
Those element!! are:
1. During the hearings by the Commission on Local Governance for the 21 st
Century and adoption of Assembly Bill 2838 rewriting LAFCO law, the
direction has been emphasized that the Commission is to provide for the
most efficient and effective service boundaries for the agencies under its
purview. The Municipal Service Review/Sphere ofInfluence update process
requires that the Commission evaluate, as a part of its review, local
governance issues, hurdles to consolidations and reorganizations. The most
efficient and effective boundary, in the staffs view, would be to address the
whole of the Bunker Hill Basin. That would require either the expansion of
the SBVWCD sphere of influence to encompass that territory or the
consolidation of the District with Muni.
S
Item *7 - IAFCO 2919
September 13, 2005
2. Passage of AB 2067 which allows for the consolidation of special districts
not formed under the same principal act. Absent this legislation, the only
alternative available would be through dissolution of the Water Conservation
District. Such an action would require the completion of the processes as
specified by Water Conservation District Law, which requires the
submission of a petition to initiate dissolution and a vote which must exceed
60% in support.
3. The position that the Bunker Hill Basin should be considered as a single
unit when evaluating agencies with recharge responsibilities or operations.
In evaluating this economic community of interest, the changed
circumstances in the Bunker Hill Basin through the completion of the Seven
Oaks Dam and the subsequent signing of the Seven Oaks Accord and the
proposed amendment with SBVWCD should be considered. As staff
understands it, 90% of the recharge of the Basin occurs through natural
recharge (snow melt, rainfall, river water through the area, etc.) and the
remaining 10% is through artificial recharge efforts. To maximize those
efforts, they should, in the staff view, be coordinated at the regional level, or
basin-level, and that would point toward either the expansion of the San
Bernardino Valley Water Conservation District sphere of influence to include
the whole of the Basin, o:r the consolidation with a regional entity.
Therefore, it remains the staffs opinion that an evaluation of consolidation of the
San Bernardino Valley Municipal Water District and the San Bernardino Valley
Water Conservation District should be pursued as outlined in the staff
recommendation on pages 1 and 2 of this report. It should be clear that the
actions presented by staff do not mandate that this consolidation will occur. There
are a number cf reviews, stakeholder and Commission considerations, and a
protest proceecing that would be required if such an application were to be
submitted by joint application of the Districts or initiated by the Commission. The
staffs recommendation includes the establishment of a committee to gather
information to evaluate such a consolidation, with the specific direction that a
report back to '[he Commission occur no later than February 15, 2006.
However, if after reviewing the original materials submitted, the supplemental
materials in this report, and the presentations at the hearing, the Commission
does not support the staffs recommendation and believes that sufficient
information has been presented to support retention of the District, it can:
1. Affmn the District's existing sphere which includes approximately 1,980
acres outside its existing boundaries within the Santa Ana River stretching
from approximately Boulder Avenue on the east to the junction of the 1-215
and I-Ie, freeways on the west; or,
2. It can e1:tablish a sphere of influence coterminous with the District's existing
boundaJies. This action would remove the ability of the District to expand
6
.
Item n-LAFCO 2919
September 13, 2005
its boundaries without a subsequent sphere of influence application and
reView.
The necessary actions to be taken by the Commission for this determination have
also been included as part of the recommendation outlined at the start of this
report.
KRM/
Attachments:
l. Staff Report dated August 9,2005 with only the Attachments #1 copy
of maps, #9 response from LAFCO Envirorunental Consultant and
#10 draft Resolution 2893
2. Response dated September 7,2005 from the San Bemardino Valley
Water Conservation District
3. Anicles of Association of the Upper Santa Ana Water Resources
Association
4. Responses from other Agencies including Letter from the City of
Riverside dated September 12, 2005 regarding its position
7
,
Staff Report dated August 9, 2005 with only the
Attac:hments #1-copy of maps, #9-response
from LAFCO Environmental Consultant, and #10-
draft Resolution No. 2893
Attachment 1
,
LOCAL AGENCY FORMATION COMMISSION
COUNTY OF SAN BERNARDINO
175 West Fifth Street, Second Floor
San Bernardino, CA 92415-0490 . (9091 387-5866 . Fax (9091 387-5871
E-mail: lafco@lafco.sbcounty.gov
WWW.sbclafcO.org
DATE: AJGUST 9, 2005 , ~~dl
FROM: KA.THLEEN ROLLINGS-Me
TO: LOCAL AGENCY FORMATION COMMISSION
SUBJECT: Agenda Item #6: Consideration ofLAFCO 2919 - Service Review
a:lld Sphere of Influence Update for San Bernardino Valley Water
Conservation District
INITIATED BY:
Local Agency Formation Commission
RECOMMENDATION:
If the Commission supports the staffs position that the concept of a basin-wide
water conservation entity should be pursued, it is recommended that it support the
ultimate consolidation of the San Bernardino Valley Water Conservation District
and the San Bernardino Valley Municipal Water District, by taking the following
actions:
1. Determine that the designation of a zero sphere of influence for the San
Bernardino Valley Water Conservation District is statutorily exempt from
environmental review and direct the Clerk to me a Notice of Exemption within
five days;
2. Designate a zero sphere of influence for the San Bernardino Valley Water
Conservation District indicating that it is the position of the Commission that
the District should ultimately consolidate with the San Bernardino Valley
Municipal Water District;
3. Direct ':he Executive Officer to establish a committee to review the possible
consolidation of the San Bernardino Valley Water Conservation District with
the San Bernardino Valley Municipal Water District to be made up of the
Item 116 - IAFCO 2919
August 9, 2005
LAFCO Executive Officer and the General Manager, or designee, of the San
Bernardino Valley Water Conservation District and the San Bernardino Valley
Mun'.cipal Water District; and a representative from each of the major water
stakeholders identified as: the City of Redlands, the City of San Bernardino
Mun:.cipal Water Department, East Valley Water District, Bear Valley Mutual
Water Company, and the City of Riverside to develop the parameters needed
for consolidation. A report of the terms and conditions needed for such a
consJlic;l.ation, developed by the Committee, will be due back to the
Commission no later than t4e January 18, 2006 hearing.
4. Adopt LAFCO Resolution #2893 setting forth the Cornmission's fmdings and
determinations related to this consideration.
However, if the Commission determines that the municipal service review shows
affirmation of the District's existing sphere of influence or a coterminous sphere of
influence is appropriate, it may take the following actions to close this
consideration:
1. Determine that the afflrmation of the District's existing sphere of influence or
the emendmeIl:t to a coterminous sphere of influence through LAFCO 2919 is
statutorily exempt from environmental review and direct the Clerk to file a
Notice of Exemption within five days;
2. Mak,~ the findings related to a service review required by Government Code
Section 56430 and determine that the sphere of influence f9r the San
Bernardino Valley Water Conservation District should be affirmed in its
present configuration or amended to be coterminous with the District's
boundaries; and, .
3. ' Defe:~ adoption of the resolution making these determinations to the consent
calendar for the September 21,2005 Commission hearing.
BACKGROUND:
At the March 16th Commission hearing the consideration of the municipal service
review and sphere of influence update required for the San Bernardino Valley Water
Conservation District (hereinafter SBVWCD) was initially presented (a map of this
district is included as Attachment #1 and the original staff report is included as
Attachment #2).. The basic questions presented in that staff report in response to
the municipal service review factors were and remain today to be:
On the issue of agencies: 'Why are there three overlapping agencies within
this portion of the Bunker Hill Basin of the eastern San Bernardino Valley
authorized to provide water conservation services? Is this division
appropriate?", and,
2
Item #6 - LAFCO 2919
August 9, 200S
If the division of responsibility is appropriate then the question would be: "If
the Bunker Hill Basin is to be addressed for water recharge and
replenishment as a unit, why isn't the SBVWCD sphere of influence drawn to
address the whole of the Basin, rather than being isolated to the eastern
portion?"
The staff's review of the factors related to a municipal service review as identified in
Government Code Section 56430 and sphere of influence update as identified in
Government Code Section 56425 have attempted to answer these questions. The
Commission continued its consideration of LAFCO 2919 to the June hearing to
allow staff additional time to gather information regarding the mandatory factors to
be considered by Government Code Section 56430. In addition, the Commission
directed LAFCO staff to review the options presented in the original staff report
regarding a potential change in the future government structure for water
conservation services to the water producers within the boundaries of the District
and request 1heir opinion and position on these options. An additional continuance
was requested by LAFCO staff at the May 18, 2005 hearing, with support from the
staff of SBVVlCD, to the August hearing.
Thy staIfviews this service review/sphere ofinf1.uence update as timely for tWo
. reasons. Fir:st, this service review discussion is timely "due to changes that have
occurred in the eastern portion of the San Bernardino Valley related to water
recharge and replenishment activities. These changes occurred primarily through
the completion of the Seven Oaks Dam as a part of the Santa Ana River Mainstem
Project. The completion of the construction of the Seven Oaks Dam to fulfill its
responsibility in controlling the flood waters has resulted in a number of
applications to the State Water Resources Control Board related to the
appropriation of the waters of the Santa Ana River. In addition, it has resulted in
an auspicious agreement, known as the Seven Oaks Accord, signed by Bear Valley
Mutual Water Company, the City of Redlands, the East Valley Water District,
Lugonia Water Company, North Fork Water Company, Redlands Water Company,
San Bernardino Valley Municipal Water District and Western Municipal Water
District related to future water diversion from the Santa Ana River. A copy of this
agreement is included in Attachment #5 to this report. . Missing from this group was
the San Bernardino Valley Water Conservation District, who has med a separate
application to the State Water Resources Control Board for diversion from the Santa
Ana River.
Second, SB 2067 (Harmon) signed by the Governor on September 10, 2004 with an
effective date of January 1, 2005 has altered the possibilities for reorganization/
consolidation that the Commission is required to evaluate during its Service Review
process. Th:.s change in statute allows for the consolidation of two special districts
formed under different principal acts (the legislative act that defines a special
district's abilities and responsibilities). The signing of this legislation allows the
Cornmission to consider the possibility of consolidating the San Bernardino Valley
3
.
Item #6 - LAFCO 29 I 9
August 9, 2005
Water Conservation District with the San Bernardino Valley Municipal Water
District or the San Bernardino County Flood Control District.
Mandatorv Sl~rvice Factors:
The areas of Ule mandatory service review factors were originally reviewed and
outlined in th,~ materials provided in the original staff report (copy included as
Attachment #2) and will not be reiterated here. However, areas where questions
were identified included District Finance issues primarily related to achieving a
better understanding of the District's groundwater charge, its mining revenues and
any restrictions on their use, and the costs for the Board of Directors, and
Government Structure Options primarily related to an understanding of the
positions of the water producers within the District on the possible options for
changes, as they are identified as the primary constituents of the District. Those
areas are more fully discussed below.
Financial Issues:
On May 17th 8taff forwarded a letter to the District requesting additional fmandal
information summarized as follows:
a. An explanation of the District's expenditures for the current and past two
fiscal yj~ars related to water spreading activities, including, but not limited to,
purchase of state project water and the agreed upon repayment schedule, if
any.
b. An outline of existing District policies related to expenditures for the Board of
Directors, including, but not limited to, payment for attendance at meetings,
conferences, travel costs, etc. as well as the expenditures for the current and
past two fiscal years related to payments to the Board of Directors.
c. An explanation of the District's revenues for the current and past two fiscal
years related to the groundwater assessment charge. It was requested that
the inf(>fInation provided include a description of the restricted use of these
revenues, if any, how the expenditures are separated by the District from its
other a-:tivities, and the process by which the charge is established each year.
d. An explanation of the District's revenues from mining leases or other mining-
related income, including a description of any restrictions on the use of these
revenues, how expenditures are separated by the District from its other
activities, the lease rate policy for current and future mining leases on
District lands including any annual inflationary factor, etc.
e. An exp:.anation of the $5,000,000 pre-payment of mining leases, including,
but not lirnited to, an identification of the source of the revenue, the terms of
4
Item #6 -lAFCO 2919
August 9. 2005
the payment, the adjustment for lease increases upon actual lease signing,
etc.
On June 17th lhe District submitted its response to the LAFCO staff request and a
copy of that response is included as Attachment #3 to this report.
As the fmancial materials in the response were reviewed, one item still resonated
with the staff !md that is the question of the cost for replenishment activities versus
administration. The information provided shows that for every dollar spent in
replenishment it has an expenditures of more than 100% of that amount for
administration. The following illustrates this point:
In FY 2002-03 for every $1.00 spent on replenishment there was an
expenditure of $1.42 for administrative costs (identified as General
Fund).
In FY 2003-04 for every $1.00 spent on replenishment there was an
e~penditure of $1. 77 for administrative costs.
In FY 2004-05 for every $1.00 spent on replenishment there was an
e~penditure of $1.26 for administrative costs.
During the District's annual determination of the groundwater assessrnent charge,
it identifies in its staff reports that "the groundwater charge should continue to help
defray the increasing.costs of operations and investigations that are necessary to
conduct the recharge program" (taken from March 2, 2005 report to the Board of
Directors on the required engineering investigation). So its intent is to supplement
the other revenues of the District for the provision of this service. However the
financial docu.ments show that it almost funds the entirety of the replenishment
activities.
The documents included in the materials identified as the "Profit and Loss by Class
for July 2004..May 2005" show that the District has made efforts to control its
expenditures. The staffs question in the original report related to concerns that the
expenditures of the District, on a yearly basis, exceeded its revenues. The Profit
and Loss by Class documents for Fiscal Year 2002-03 identify this shortfall at
$604,602 ane. Fiscal Year 2003-04 at $591,903. The material provided through the
end of May 2005 appears to show that expenditures will be at least covered by
revenues received during this Fiscal Year.
In response to the questions raised regarding the costs for the District's Board of
Directors, the District has provided supplemental materials for review. In these
materials they note that the District's policy allows for payment of up to a maxim urn
of 10 meetings per month (as authorized by law), a stipend payment at the present
time of $162 per meeting with an allowance for an annual 5% increase dependent
upon certain conditions, and the payment of specific expenses. In addition, the
supplernentaJ, response materials provide a table identifying director expenses per
5
Item <<6 -IAFCO 2919
August 9,2005
year. Based upon the information presented by the District, the estimated per
Director cost by Fiscal Year has been calculated by LAFCO staff to be:
FY 02-03 $11,445
FY 03-04 $12,093
FY 04-05 (estimated yearly total $90,154) $12,879
However, if the maximum number of meetings were paid for each member of the
Board of Directors at the present stipend rate of $162, the cost for stipend alone
would be $136,000 ($19,440 per Director for seven Directors).
Issues related to Local Governance Options:
In its letter to the District, staff requested the official position of the Board of
Directors of the SBVWCD as to the options presented for its future governance. Of
no surprise, the District has responded through submission of Resolution No. 409
(copy included as a part of Attachment #3 - Appendix F) that it wishes to maintain
its current sphere of influence and operations - not as a part of San Bernardino
Valley Munic:ipal Water District or the San Bernardino County Flood Control
District or with an expanded sphere of influence.
SBVWCD indicates that it does not favor consolidation with the County Flood
, Control District since the fulfillment of the mis~ion of SBVWCD and the County
Flood Control District are at cross purposes - noting that effective flood control
requires the movement of the waters safely through the watershed as quickly as
possible; while the efforts of water conservation are to retain the waters within the
facilities long enough to allow percolation to occur. The response by Mr. Patrick
Mead, Director of the County Department of Public Works, on behalf of the County
Flood ControL District in general concurs with this position (copy included as
Attachment *'4).
SBVWCD haB also indicated it does not favor consolidation with the San Bernardino
Valley Municipal Water District (hereinafter "MWD") since the purposes identified
during the creation of the agencies, in their view, are different. Specifically noted in
the SBVWCD response is its position that it was formed to conserve water in the
Bunker Hill Basin. Staff would note, however, that the previous materials
submitted by SBVWCD indicated that the District was formed to "protect against
excessive export of the local surface water by downstream agencies" -- not
necessarily the same purpose. The SBVWCD response continues that the purpose
for creation of the MWD in 1954, in their opinion, was to serve as the agent for
importation of State Project Water into the eastern portion of the San Bernardino
Valley. Supporting statements for this position within the SBVWCD's materials
submitted are:
l. SBVWCD's comrnitment to groundwater rnaintenance and enhancement of
the B"l.nker Hill basin is its paramount mission.
6
,
Item 116-LAFCO 2919
August9,2005
2. SBVWCD has significantly more experience in groundwater recharge than
does the MWD since its spreading activities began more than 70 years ago.
3. SBVWCD has "no potentially conflicting interests or responsibilities' which
rnight result in a shift of water priorities.
Mr. Robert Reiter, General Manager of the MWD has provided a response to the
LAFCO staff request for information and to the positions of SBVWCD as outlined in
their materials on file with the Commission. A copy of this response is included as
Attachment #5. This response indicates Mr. Reiter's opinions that the consolidation
is viable, especially in light of the signing of the Seven Oaks Accord, identifies the
position that should such a consolidation be supported for the two agencies the
financing of tb.e groundwater replenishment/ recharge functions would be funded
by the existing revenue stream from property tax, mining revenues and interest
income and th.e groundwater assessment would be abolished.
Inteerated Water Manae:ement Plan:
At the March hearing, questions were raised regarding the status of an Integrated
Groundwater Management Plan or Regional Water Management Plan for the Basin..
The response submitted by the SBVWCD indicates that no such document exists at
the present t:me but that 'a Regional Water Management Group has been formed to
develop such a document. The MWD response to the question raised by the
Commission and the response of the District notes concurrence that no such
document currently exists, but indicates that a group made up of the Water
Conservation District, San Bemardino Valley Municipal Water District, and other
agencies are working to prepare a Planning Grant Application for filing with the
State of California. This application, according to the document, is to be filed by the
MWD, as the lead agency. If the grant application is successful, the MWD will work
with SBVWCD and the other members of the water community to meet the
requirement8 of the Seven Oaks Accord, as well as addressing the needs of other
water producers not a party to the accord.
Water Spreadine: Activities:
In the staffs view additional information was needed to clarify the water spreading,
water recharge relationship of entities within the overall Bunker Hill Basin. In an
effort to gather that information, staff requested that the County Flood Control
District and MWD outline their efforts at recharge. Mr. Patrick Mead, on behalf of
the San Benlardino County Flood Control District notes that the District's facilities
are used for recharge purposes during non-flood periods and they have a number of
agreements '.vith various water agencies in place to allow for water percolation and
replenishment to occur. The District however does not track the amounts of water
spread but does provide reports on storm water captured. His response indicates
that within the westem portion of the Valley storm water captured during the period
7
Item f6 - LAFCO 2919
August 9. 2005
from 10/1/0t. to 6/30/05 was 11,144 acre feet. Mr. Robert Reiter's response, on
behalf of the MWD, indicates that it has spread a total of 42,814 acre feet over the
five-year period. Other water agencies within the basin also recharge water, such
as the City of Redlands, Bear Valley Mutual Water Company, and East Valley Water
District, but clue to time constraints staff has not requested information on the
amounts of water recharge by these agencies. . A comparison of the known recharge
within the Bunker Hill Basin is identified as follows:
Entity Water Water Water Water Water
Spread Spread Spread Spread spread
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2000-01 2001-02 2002-03 2003-04 2004-05
Water Conservation 6,811 1,750 15,622 13,820 2,934
District (Santa I\na and
Mill Creekl
San Bernardino Valley 4,705 10,772 16,805 8,147 2,385
Municipal Wat,:r District
(various areas\
An average of the water spreading accomplished by these agencies over the five (5)-
year period S::10WS that the SBVWCD spread an average of 8,187 acre feet and the
MWD spread an average of 8;563 acre feet. The waters spread by the Conservation
District include its native Santa Ana River waters and supplemental water
purchased during the drought period. No information was provided as to the types
of water sprea.d by the MWD, but it is assumed to be State Project Water.
Review of Options with Wat-er Producers:
Of particular importance during the discussion of local governance issues at the
prior hearing, was the need to initiate discussions with the major water producers
within the boundaries of SBVWCD and outline the govemance options presented to
the Commission for its consideration. In order to accomplish this, staff included in
its letter to S BVWCD the request for a listing of the name and address of the water
producers within the District's boundaries. stafrs purpose was to send a letter
outlining the options being reviewed and seeking each entity's position on those
options identified as:
a. Consolidation with the County Flood Control District,
b. Consolidation with the San Bernardino Valley Municipal Water District,
c. Expansion of the SBVWCD sphere of influence to include the area identified
by engineers as the "Bunker Hill Basin" to address the regional water
conservation efforts, or,
d. Retention of the SBVWCD as it is presently configured - the status quo
option.
In discussion between the LAFCO Executive Officer and SBVWCD General Manager,
it was deternlined that rather than contact each producer, large and small, that
8
Item *6 - LAFCO 2919
August 9,2005
LAFCO staff should review the materials with the group identified as the "Upper
Santa Ana Water Resources Association", which, in the District's opinion, provided
a broad cross-section of the water stakeholders within the District. The Executive
Officer met with this group on June 9th to review the service review/sphere of
influence up6ate for the SBVWCD currently being processed, outlined the options
being discussed by the Commission, and requested that each agency within the
boundaries of the SBVWCD provide a response to LAFCO staff by August 1st on their
position on tl1ese options (copies included as Attachment #6). The following chart
provides an outline of the responses received from the various water producers, the
total amount of water they pump from within the District's boundaries during the
2004 calender year which includes agricultural and non-agricultural water, and the
total cost of their groundwater assessment for that period:
Amount of Water
Pumped from January 1
Service Review Option 2004 throu9h Amount of Groundwater
Water Producer Chosen December 31. 2004 Assessment Daid
East Vallev Water IJislrlel Suooorts status Quo 22755.2 $131 723.01
Supports the receipt of
additional information prior
to position on
City of Riverside consolidation, supports 19.973.1
maintenance Qf sahere $115 917.15
Gage Canal Company
(~i~erstood to be " part of the No separate position
Ci of Riverside) . orovided 10717.6 $40.320.41
City of Redlands SUCDOrts Consolidation 17.320.1 $95,403.48
City of San Bernar,jino No position as vet identified 7055 $40917.82
Meeks & Daley (primary owners
are City of Riverside and
Elsinore Valley Municipal Water
District) Supports Stalus Quo 2,037 $9.336.83
SBVMWO No cosition 776.2 $4,667.80
Sear Valley Mutual Water
Comoanv Supports Consolidation 0 $0.00
Luqonia Waler Conoanv SUOOOrtS Consolidation not identified on listina
Redlands Water Company Supports Consolidation not identified on listina
In addition, correspondence was received from water producers outside the
boundaries of SBVWCD. These include the Riverside-Highland Mutual Water
Company, the City of Rialto and the West Valley Water District who have indicated
their SUPPOIt for maintenance of the status quo. A copy of each of these responses
is included as Attachment #7 to this report.
In establishing its position of support for consolidation, the City of Redlands City
Council included the requirement that a memorandurn of understanding be signed
by both the City of Redland and the MWD. A draft copy of this memorandum is
included in the City of Redlands staff response included as Attachment #8 to the
report. Thi1; memorandum outlines the City's position that the employees of the
District rnu:,t be protected, that the operations of recharge are protected, that the
revenue stream of the Water Conservation District be isolated and accounted for by
9
Item H6 -lAFCO 2919
August 9. 2005
the MWD to support solely these activities, and its position related to the return of
certain facilities to the City of Redlands.
CONCLUSION:
Based upon the information outlined above, and in the original staff report, for the
review of LAFCO 2919 and the policy directions of the State Legislature to LAFCO to
develop the most efficient and effective service boundaries for agencies, LAFCO
staffs recommendation is that the .CoIJimission should amend the sphere of
influence of the San Bernardino Valley Water Conservation District to a zero sphere
indicating its position that a consolidation with the San Bernardino Valley
Municipal Water District should be undertaken. The staffs recommendation does
not initiate the consolidation, it does not change the area in which the Water
Conservation District currently provides its services, nor does it eliminate the
groundwater charge. Its intent is to set forth a method for gathering the specific
detailed information that could be used by the SBVWCD and MWD to me ajoint
application for consolidation, much like that initiated by the Resource Conservation
Districts, or lor a future presentation to the Commission to initiate an application
on its own volition to consolidate the districts pursuant to the provisions of
Government Code Section 56375.
The staffs position is not taken on the basis that the District is mismanaged or
derelict in th,~ perfoimance of its responsibilities, the District is well-managed and
performs its :,esponsibilities. The staffs recommendation is, however, based upon
three elements:
1. During the hearings by the Cornmission on Local Governance for the 21st
Century and adoption of Assembly Bill 2838 rewriting LAFCO law, the
directiJn has been emphasized that the Commission is to provide for the
most efficient and effective service boundaries for the agencies under its
purview. The Municipal Service Review jSphere of Influence update process
requires that the Commission evaluate, as a part of its review local
governance issues, hurdles to consolidations and reorganizations. The most
efficient and effective boundary, in the staffs view, would be to address the
whole of the Bunker Hill Basin. That would require either the expansion of
the SEVWCD sphere of influence to encornpass that territory or the
consolidation of the District with the MWD.
2. Passage of AB 2067 which allows for the consolidation of special districts not
formed under the same principal act. Absent this legislation, the only
alternative available would be through dissolution of the Water Conservation
District. Such an action would require the cornpletion of the processes as
specified by Water Conservation District Law which requires the submission
of a petition to initiate dissolution and a vote which must exceed 60% in
support.
10
Item .6 - LAFCO 2919
August 9. 2005
3. The po:;ition that the Bunker Hill Basin should be considered as a single unit
when elTaluating agencies with recharge responsibilities or operations. In
evaluating this economic cornmunity of interest, the changed circumstances
in the Bunker Hill Basin through the completion of the Seven Oaks Dam and
the subsequent signing of the Seven Oaks Accord should be considered. As
staff understands it, 90% of the recharge of the basin occurs through natural
recharge (snow melt, rainfall, river water through the area, etc.) and the
remaining 10% is through artificial recharge efforts. To maximize those
efforts they should, in the staff view, be coordinated at the regional level, or
basin-level, and that would point toward either the expansion of the San
Bemardino Valley Water Conservation District sphere of influence to include
the whole of the Basin, or the consolidation with a regional entity.
In reviewing the option of a sphere of influence expansion to encompass the whole
of the Bunker Hill Basin with the SBVWCD and its major water production
stakeholders no support for this option was received; therefore, staff has not
evaluated this option further. In reviewing the option for consolidation with the San
Bernardino County Flood Control District, no support for this option was received;
therefore, staff has not evaluated that option further. However, some support frorn
the water producer stakeholders for further review of the option of consolidation
with the MWD has been received.
In addition, Htaff supports the consideration of this option for the following reasons:
1. The Sml Bemardino Valley Municipal Water District has responsibilities for
the maintenance of the- safe yield of the Bunker Hill Basin as the watermaster
for The Orange County Judgment and The Western Judgment.
2. A reduction in cost for the operation of the general fund administrative
activities could be achieved through a reduction in the Board of Director and
meeting expenses, legislative services, while maintaining the replenishment
activities. A reduction in the expense to the water producers in the area
could be achieved through the abolition of the groundwater assessment
charge currently imposed while maintaining the groundwater replenishment!
recharge activities with the balance of the SBVWCD revenue stream.
3. The Seven Oaks Accord specifies agreements between the water producers
within the eastern end of the Bunker Hill Basin as to the diversion of waters
within the Santa Ana River. In addition, the MWD is working with these
stakeholders, the SBVWCD, and others to develop a grant application to the
State Jf California, which if successful, will fund the development and
implementation of an Integrated Groundwater Management Plan.
4. Numerous agencies currently spread water for recharge within the Bunker
Hill Basin within and outside the boundaries of the Water Conservation
District. Coordination and maximizing these efforts to secure the water
11
Item #6 - IAFCO 2919
August 9.2005
supply for the 400,000 plus residents anticipated within the boundaries of
the SB\,WCD and the 500,000 plus residents within Riverside County that
rely on this Basin for their domestic water supply should be the paramount
consideration.
Therefore, in the staffs opinion, an evaluation of consolidation of the San
Bemardino Valley Municipal Water District and the San Bemardino Valley Water
Conservation District should be pursued.
In closing, it should be clear that the actions presented by staff do not mandate that
this consolidation will occur. There are a number of reviews, stakeholder and
Commission considerations, and a protest proceeding that would be required if
such an application were to be submitted by joint application of the Districts or
initiated by tl:.e Commission. The staff's recommendation includes the
establishment of a committee to gather information to evaluate such a
consolidation, with the specific direction that a report back to the Commission
occur no later than January 18, 2006.
However, if after reviewing the materials and the presentations at the hearing, the
Commission does not support the staffs recommendation and believes that
sufficient information has been presented to support retention of the district, it can:
1., Affirm 1:he District's existing sphere which includes approximately 1,980
acres outside its existing boundaries within the Santa Ana River stretching
from approximately Boulder Avenue on the east to the junction of the 1-215
and 1-10 freeways on the west; or,
2. It can establish a sphere of influence coterminous with the District's existing
boundaries. This action would remove the ability of the District to expand its
boundaries without a subsequent sphere of influence application and review.
The necessary actions to be taken by the Commission for this determination have
also been inc:,uded as part of the recommendation outlined at the start of this
report.
KRM/
Attachments:
1. Maps of San Bemardino Valley Water Conservation District and related
agencies
2. Original Staff Report for March 16, 2005 hearing on LAFCO 2919 with
Attachment #4 only (a full copy of staff report with attachments is available
on the Commission's web site at www.sbc1afco.org)
3. SupplEmental Information on the Municipal Service Review/Sphere of
Influence Update from the San Bemardino Valley Water Conservation District
dated ,June 17, 2005
12
. ,
Item #6 - LAFCO 2919
August 9, 2005
4. Memorandum from Patrick Mead, Director, County Department of Public
Works en behalf of San Bernardino County Flood Control District
5. Letter from Robert Reiter, General Manager, San Bernardino Valley Municipal
Water District with copy of Attachments #7 and #20 Included
6. Response on Four Options Presented in Service Review from Water Producers
within the Boundaries of the San Bernardino Valley Water Conservation
District
7. Response on Four Options Presented in Service Review from Water Producers
outside the Boundaries of the San Bernardino Valley Water Conservation
District
8. Letter from Douglas Headrick, Chief of Water Resources for the City of
Redlands Dated August 2,2005
9. Response from Commission Environmental Consultant, Tom Dodson of Tom
Dodson and Associates Dated January 20, 2005 on Affirmation of the
District's Sphere of Influence and August 8, 2005 on Reduction to a Zero
Sphere of Influence
10. Draft LAFCO Resolution #2893
13
CROYDON RISK CONSULTANTS
198 North Arrowhead Avenue, San Bernardino, CA 92408 U.S.A.
Telephone 909.884.8294 Facsimile 909.381.7610
Croydonrisk@earthlink.net
September 22, 2005
Robert E. Martin, P.E., General Manager
EAST VALLEY WATER DISTRICT
3645 East Highland Avenue
Highland, CA 92346
Re: Insurance Renewal Project - October I, 2005 Policy Expirations
Dear Bob:
The Insurance Renewal Management Project lead by Croydon Risk Consultants (CRC)
will conclude on September 27, when your Board of Directors considers insurance
coverage, calTier selection and costs your recommended by your Insurance Committee. I
have reviewed the Insurance Committee recommendations and concur with them.
The attached Executive Summary'and Insurance Renewal Report is based on information
provided by EVWD managers and staff and by Arroyo Insurance Services (Arroyo),
formerly Caldwell and Moreland Insurance Services.
East Valley managers and staff have done a good job of considering general risks faced
by water districts and the particular risks associated with EVWDs' unique business
model, in sel ~cting levels of insurance coverage and the scope of coverage deemed
appropriate to the proper protection of EVWD assets and interests. Arroyo has done a
good job of presenting EVWD risks to the insurance marketplace, in securing
competitive proposals from insurers that have historically been reliable and fmancially
sound, and ir. organizing policyholder services needed by EVWD.
I am pleased to have been a part of the process that has resulted in favorable offerings of
insurance coverage amounts, policy terms and conditions, carrier security and services
for consideration by your Board of Directors.
-,
, ,
~i~cerelr" ,
, "
, ."
. ~.~..- ~- . '. .....- "
,
Paul W. Pinckney, CPCU.
Principal
I
CROYDON RISK CONSULTANTS
Insurance Renewal Management Project
For
EAST VALLEY WATER DISTRICT
September 27, 2005
EXECUTIVE SUMMARY - INSURANCE RENEWAL REPORT
East Valley Water District manages major aspects of its Property and Casualty insurance
program thro'lgh its Insurance Committee, which reports to the Board of Directors.
Insurance brckerage services are provided by Arroyo Insurance Services (Arroyo) for
property, liability, auto and pollution coverage. Workers' Compensation coverage (not a
subject ofthi, project) is placed through Sander Kessler Insurance Services in Los
Angeles.
Croydon Risk Consultants (CRC) is an independent insurance and risk management
consulting fIrm located in San Bernardino. CRC was hired by EVWD as an independent
advisor to aS~iist Arroyo in setting goals for the October 1,2005 renewal of coverage they
handle, to advise EVWD about cmTier relationships, coverage aspects, elements of risk
and coverage amounts and to assist EVWD in analysis and selection of alternative
coverage and cost plans proposed through Arroyo.
Arroyo has placed the majority of coverage through a specialized water district program
underwritten by American Alternative Insurance Company, a subsidiary of Munich
Reinsurance, historically one ofthe world's strongest and most reliable insurer groups.
Coverage and premium cost plans offered by this specialized program are uniquely
tailored to water district risk exposures at very competitive costs.
We are assured by Arroyo that coverages and insurance amounts selected by your Board
of Directors 'Nil! be put into effect on the October 1, 2005 expiration of current coverage
without interruption of coverage. Also, Arroyo has disclosed a commission of 10%
applying to all policies, with no profIt-sharing or contingent income arrangements with
insurers. In my experience a commission of 10% is within the reasonable range of broker
income.
Renewal terns and conditions proposed for the 2005-2006 policy term, on a like-to-like
basis, shows a slight (4%) reduction in overall premium rates, however with a 10%
increase in insured property values, the total premium cost, year-to-year, shows a 2%
premium increase - a very attractive renewal offering given the current state of the
insurance market. Total insurance costs through Arroyo have gone from $526,373 for the
2004-2005 policy year to $537,573 for 2005-2006.
The Insurance Committee recommends a few changes to the renewal policies, centered
principally on increasing earthquake and flood coverage amounts to recognize EVWD
property insurance risks and exposure to such losses, including:
2
~ Increasing Earthquake and Flood coverage on real and personal property, and
tc include resulting loss of income, from $5,000,000 to $10,000,000 for an
estimated additional premium of $21,100.
~ Increasing Earthquake and Flood coverage on underground water and sewer
p:.ping from $5,000,000 with a 7.50% deductible to $15,000,000 with a 5.00%
d,:ductible for an estimated additional premium of$58,800 (another proposal
for an estimated additional premium of$67,600 was not selected).
~ Increasing Excess Liability coverage for General Liability and Auto Liability
risks from $10,000,000 to $15,000,000 (for a total limit of $25,000,000 above
tnderlying coverage) for an additional premium of$13,203.
~ The Insurance Committee did not recommend proposals to drop coverage now
included within the expiring policies. The Committee recommends:
0 Retaining Auto Medical Payments and Uninsured Motorists coverage with
a premium of$12, 672 - deemed to be good value for money spent.
0 Renewing Comprehensive and Collision coverage from EVWD vehicles
for a prer,nium cost of$15,173 - deemed to be good value for money
spent.
~ The balance of coverages, in terms of scope of coverage, deductibles and
a:nounts, remain as per expiring policies.
Total additional premiums for added coverage are approximately $93,200, most of which
are allocable to the 10% increase in insured property values and more than doubling the
amount of insured earthquake and flood coverage. Authorization of the additional
coverage and costs will result in a net increase of insurance costs for the 2005-2006
policy year (Jf course excluding Workers' Compensation) of about 16%, for a total of
approximately $630,773.
3
-
-
--
- AQROYO
INSCRANCE SERVICES
.. '__~'.,w'___'"_'___'____"_'____ -.__,_._..'"_._____>~~____.__~_
.-
INSURANCE PROPOSAL
.-
PREPARED FOR:
OIl
OIl
.. East Valley Water District
..
OIl
PRESENTED BY:
OIl
.. Arroyo Insurance Services
685 East Carnegie Dr. Suite 180
San Bernardino, CA 92408
License # OB54203
. (909) 889-0295
.
This presentation is designed to give you an overview of the insurance coverage's we
- recommend for your company. It is meant only as a general understanding of your
insurance needs and should not be construed as a legal interpretation of the insurance
policies that will be written for you. Please refer to your specific insurance contracts for
. details on coverage's, conditions and exclusions.
OIl
1
..
-
.. II I
INTRODUCTION
..
This proposal is based upon the information made available to us and our knowledge of
.. the exposures inherent to your type of business.
Our proposal is designed to display the services we are committed to provide your
. business, a brief description of coverage's being proposed, the cost of those coverage's
and any recommendations or alternatives to coverage we might recommend.
. We appreciate the confidence you have shown in allowing us to prepare this
presentation for you. We believe we are personally responsive to all our clients' needs
and our agency will respond in a manner that assures your business will receive the
. insurance representation it deserves.
In addition to myself, these are the people who will be handling your account:
...
Commercial Lines Service - Julie Rybak
.. Claims Service - Leslie Jacklin
Personal Lines Service - Ann Thompson
.
Please remember, staff members are available to answer any question or assist with
... any aspect of your insurance program. Please feel free to contact us at any time.
Telephone (909) 889-0295
...
Fax Number (909) 888-3422
... Mailing AddresH POBox 6185
San Bernardino, CA 92412-6185
.. e-mail: Richc@arroyoins.com
Julier@arroyoins.com
..
We look forward to continuing a long term working relationship.
..
. II ~
LOCATION SCHEDULE
.
2
...
-
..
Location Buildil1lg Location Address
Number NumtMlr (Street, City, County, S_. Zip)
..
1 1-9 1155 North Del Rosa Avenue
San Bernardino, CA
2 1-6 7479 San Francisco
. San Bernardino, CA Plant #132
3 1-7 8m Comer of VictoriafT ample
San Bernardino, CA Plant #9A
4 1-4 S/S 6th St. W of Pedley Road
.- San Bernardino, CA Plant #11
5 1-7 S/E of 6th St. & Pedley Road
San Bernardino. CA Plant #12
6 1-7 N/E Comer Lynwood/Harrison
.. San Bernardino, CA Plant #24
7 1-9 N of Foothill Drive
San Bernardino. CA Plant #37
8 1-7 Date 51. E of Valaria
.. San Bernardino, CA Plant #39
N Side of 3rd/E of Palm Ave
9 1-7 San Bernardino, CA Plant #40
10 1-5 Shasta Dr. E of Hemlock Dr.
San Bernardino, CA Plant #56
.. E of Orange St., S of 5th St.
11 1-4 San Bernardino, CA Plant #121 GONE
12 1-2 N of VictorialTerminus Indian
San Bernardino, CA Plant #123
.. S of GreenspoUE of Cone Camp
13 1-7 San Bernardino, CA Plant #125
14 1 N/E of Highland Ave/Amber St.
San Bernardino, CA Plant #126 GONE
.. 15 1-4 S/W Comer of 9th & Sterling
San Bernardino, CA Plant #127
16 1-5 Waf Cloverhill/N of Willowood
San Bernardino, CA Plant #131
. 17 1-5 Waf Central/Stratford & Mansfield
San Bernardino, CA Plant #133 NOT IN USE
18 1 N Highland Ave. E. City Creek B
San Bernardino, CA Plant #134
.. 19 1-5 N/E of Live Oak Rd/Summit Dr.
San Bernardino, CA Plant #137
20 1-4 S/S Pumalo St./W of Guthrie St.
San Bernardino. CA Plant #41
21 1-6 S/E Comer Mountain & Marshall
.. San Bemardino. CA Plant #25
22 1-3 Marshall Blvd. Waf Sterling
San Bernardino. CA Plant #27
23 1-4 Court St. between Del Rosa Ave
- San Bernardino. CA Plant #28
24 1-6 N/E of Steriing & Marshall
San Bernardino, CA Plant #33
25 1-4 PerrisHitI
.. San Bernardino. CA Plant #34
26 1-4 N of Aspen & Hemlock
San Bernardino, CA Plant #59
.
.. I I I I
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3
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-
- Location Buildifl,g Location Address
Number NumlHtr (St....t, City. County, S_. Zip)
- 27 1-5 N of 28thIW of Lapraix
San Bernardino, CA Piant #99
28 1-4 N/E of Mountaintop Drive
San Bernardino, CA Plant #101
29 1-4 Baseline & Palomino St.
. Hinhland. CA Plant #104
30 1-4 Citrus St. between Lorna/Mountain
San Bernardino, CA Plant #107
31 1-5 E of Highland Ave/N Baseline
II San Bernardino. CA Plant #1 08
32 1-8 Greenspot Road
San Bernardino. CA Weli #120
33 1-3 N VictoriafTerminus Ind Reservation
II San Bernardino, CA Plant #124
34 1-4 Pacific & Del Rosa
San Bernardino, CA Plant #130
35 1-4 3rd & Sterling
San Bernardino, CA Piant #141
.. Church Street
36 1 San Bernardino, CA Plant #135
37 1 Dunkirk Street
San Bernardino. CA Plant #136
.. Palm Street
38 1-2 San Bernardino, CA Plant #138
39 1-2 E. Highland Ranch
San Bernardino, CA Plant #140
II N of GreenspotlE of Plunge Creek
40 1-2 San Bernardino, CA Plant #142
41 1-5 5fu St W of Church Street
San Bernardino, CA Plant #146
II 42 1 Abbey Way Weii
San Bernardino, CA Plant #143
43 1 City Creek Water Treatment
4588 Highland Avenue
.. Hinhland. CA Plant #134
44 1-5 Greenspot Rd E of Cone Camp
San Bernardino, CA Plant #120
45 1 3654 East Highiand Ave #18 Temoorarv Office
Hinhland, CA 92346
.. N/E of Rockford & Hoiiy Vista
46 1 San Bernardino, CA Vacant Weii
47 1 8/W of Satinwood Court. S. of
Svcamore, San Bernardino, CA Vacant Land
.. West Side of Lankershim, South
48 1 of CVDress. San Bemardino. CA Vacant Land
49 1 S/E Comer of 9th & Mckinley
San Bernardino, CA Vacant Land
- 1441 East Baseiine
50 1 San Bernardino. CA Storaoe USA
51 1 Fairfax Dr. between 7th & Union
San Bernardino. CA Inactive Well #15
- 52 1 Lynwood Way. South of Baseline
San Bernardino. CA inactive Well #17
53 1 7th Street. East of Sterling
San Bernardino. CA Inactive Well #20
.. 54 1 N Rosemary Dr.. E Los Feliz Dr.
San Bernardino. CA Inactive Well #21
55 1 S Railroad RIW E of Del Rosa
San Bernardino. CA Inactive Well #26
II 56 1 E/S Arden at Walnut Street
San Bernardino. CA Inactive Well #30 SOLD
57 1 N/S 11th St.. E of Cole Avenue
San Bernardino, CA Inactive Well #31
.
4
..
-
.. S/S Baseline, E Olive Tree Lane
58 1 San Bernardino, CA Inactive Well #32
59 1 Date St., W of Big Sand Creek
San Bernardino, CA Inactive Well #42
.. 60 1 Church St.. N of 5th Street
San Bernardino, CA Inactive Well #43
61 1 WIS Boulder & N Eucalyptus St.
San Bernardino, CA Inactive Well #49
- 1 112M North of Foothill Dr.
62 1 San Bernardino, CA Inactive Well #57 SOLD
63 1 Upper Little Sand Creek
San Bernardino, CA Inactive Well #58 SOLD
iIlI 64 1 Little Sand Creek Canyon
San Bernardino, CA Inactive Well #61 SOLD
65 3999 Atlantic
1 San Bernardino, CA Inactive Well #94
iIlI 66 1 N Victoria Between Lynwood & Citrus
San Bernardino, CA Inactive Well #98 SOLD
67 1 N 3rd St.. E of Calhoun
San Bernardino, CA Inactive Well #102
iIlI 68 1 Highland Avenue, W of Danair
San Bernardino. CA inactive Well #113 SOLD
69 1 S of Sycamore, E Satinwood
San Bernardino, CA Vacant Land
70 1 9th & McKinley
iIlI San Bernardino, CA Vacant Land
71 1 9th & McKinley
San Bernardino, CA Inactive Well # 145 SOLD
72 1 W/S Fairfax, N of Date Street
iIlI San Bernardino, CA Inactive Well
73 1 Church Street
San Bernardino, CA Vacant Land
74 1 Highland Ave. W of Central Ave
.- San Bernardino, CA Vacant-Patton
75 1 North Fork. Intake Santa Ana River
San Bernardino. CA North Fork Canal
76 1 Parcel #1201-361-01 & #1201-36
Fifth Street. Hiohland. California Vacant Land
.- APN #1 192-201-23 & 24
77 1 Hiohland. California Vacant Land
78 1 East of Fifth Street
San Bernardino. CA Vacant Land
. Orchid Ave
79 1 San Bernardino, CA Vacant Land
80 1 "? SUBet Bonnie & Del Rosa
San Bernardino. CA Vacant Land
. 81 E Greenspot Road
1 San Bernardino. California Vacant Land
82 1 6th Street & Sterling Avenue
San Bernardino. California Vacant Land
. 83 1 9'" Street (Parcel #1192.071-05)
Hiohland. California Vacant Land
.
iIlI
.
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5
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'..
... Commercial Automobile Schedule
Veh Vehicle Make Med Specified Causes of ColDslon
- Year Vehicle Model Llsb PIP UM UIM Loss or Deductible
# Serial Number Pay ComDrehenslve Perils
[ ] Specified Causes
. 1 1986 Ford F800 ID#3663 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
2 1988 Heavy Equipment Trailer ID#0625 X [x ] Comprehensive $1000
,. $1000 Deductible
[ ] Specified Causes
3 1989 Ford F250 ID#3155 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
4 1987 Ford F250 ID#1970 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 5 1987 Ford F700 ID#9939 X X X [x I Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
6 1989 Ford F800 10#9675 X X X [ x ] Comprehensive $1000
. $1000 Deductible
[ ] Specified Causes
7 1990 Ford Supe.. Duty ID#5661 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
8 1988 Ford F700 Dump ID#1311 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
9 1991 Ford F350 ID#3291 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 10 1992 Ford Super Duty ID#4544 X X X [ x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
11 1992 Ford F250 10#5444 X X X [ x ] Comprehensive $1000
,. $1000 Deductible
[ ] Specified Causes
12 1993 Ford F250 10#9483 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
13 1994 Ford F150 ID#2977 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
,. 14 1994 Ford F150 ID#9954 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
15 1994 Sewer Jetter Trailer ID#1206 X [x ] Comprehensive $1000
,. $1000 Deductible
[ ] Specified Causes
16 1995 Ford F150 10#4853 X X X [x ] Comprehensive $1000
$1000 Deductible
,. [ ] Specified Causes
17 1995 GMC 1 TOil ID#8614 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
18 1996 Ford F250 10#3738 X X X [x ] Comprehensive $1000
$1000 Deductible
.
6
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-
- [ ] Specified Causes
19 1996 Ford F250 10#3015 X X X [x I Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
- 20 1997 Ford F150 10#4254 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
21 1997 Ford F150 10#2637 X X X [ x I Comprehensive $1000
. $1000 Deductible
[ ] Specified Causes
22 1995 ARC Dump Trailer X [x ] Comprehensive $1000
. $1000 Deductible
[ I Specified Causes
23 1995 ARC Dump Trailer X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
24 1997 Ford F150 10#1371 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 25 1996 Wells Ca'flo Trailer #25719 X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
26 1997 GMC Surburban 10#12356 X X X [x I Comprehensive $1000
. $1000 Deductible
[ I Specified Causes
27 1996 Ford Vactor Sewer 10#29224 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
28 1997 Ford F150 10#84995 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 29 1997 Ford F150 10#28740 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
30 1998 Buick Cen':ury 10#15496 X X X [x I Comprehensive $1000
. $1000 Deductible
[ ] Specified Causes
31 1998 Ford Exple,rer 10#28635 X X X [ x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
32 1999 Ford F250 Truck 10#80263 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
33 Dual Axle Trailer X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 34 Bi9 Tex Trailer 10#37933 X [x ] Comprehensive $1000
$1000 Deductible
[ ] SpeCified Causes
35 2000 Ford F350 10#42027 X X X [x ] Comprehensive $1000
. $1000 Deductible
[ ] Specified Causes
36 2000 Ford F250 Truck 10#71839 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
37 2000 Ford F250 Truck 10#71838 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 38 2000 GMC Siena Truck 10#85547 X X X [x ] Comprehensive $1000
$1000 Deductible
.
7
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- [ ] Specified Causes
39 2001 Ford Explorer 1D#27886 X X X [x ] Comprehensive $1000
$1000 Deductible
[ I Specified Causes
- 40 2001 Ford Explcrer ID#42663 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
41 2001 GMC Safari Van 1D#10735 X X X [x ] Comprehensive $1000
. $1000 Deductible
[ I Specified Causes
42 2002 Ford Explcrer 1D#44205 X X X [x ] Comprehensive $1000
. $1000 Deductible
[ ] Specified Causes
43 2002 Chevy Suburban ID#07935 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
44 2000 Chevy 2500 ID#21672 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 45 2002 Sterling ID#40849 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
46 2003 Chevy CHiOO 1D#71229 X X X [x ] Comprehensive $1000
. $1000 Deductible
[ ] Specified Causes
47 2003 Ford F350 ID#30103 X X X [x I Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
48 2004 Chevy Truck ID#82340 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 49 2004 Sterling LF'9500 1D#99244 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
50 1954 Chevy Picl<up ID#0675011 F54X X X X [x ] Comprehensive $50
. $50 Deductible
[ ] Specified Causes
51 2004 Chevy SiI,erado 1D#50642 X X X [x ] Comprehensive $1000
$1000 Deductible
. [ I Specified Causes
52 2004 Carson Trailer 1D#78250 X [x ] Comprehensive $1000
$1000 Deductible
. [ ] Specified Causes
53 2004 Chevy Truck ID#93516 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
. 54 2005 Chevy Sil,erado Truck 1D#53800 X X X [x ] Comprehensive $1000
$1000 Deductible
[ I Specified Causes
55 2005 Chevy SiI,erado Truck 1D#56878 X X X [x ] Comprehensive $1000
. $1000 Deductible
[ J Specified Causes
56 2004 Big Tex Trailer 1D#50438 X [x ] Comprehensive $1000
$1000 Deductible
. [ J Specified Causes
57 2005 Ford F250 Truck ID#13401 X X X [x ] Comprehensive $1000
$1000 Deductible
[ J Specified Causes
. 58 2005 Chevy CC4500 Truck ID#15557 X X X [x ] Comprehensive $1000
$1000 Deductible
.
8
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.. [ I Specified Causes
59 2005 Ford F250 Truck 10#70047 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
.. 60 2005 GMC Sierra Hybrid 10#53029 X X X [x ] Comprehensive $1000
$1000 Deductible
[ ] Specified Causes
61 2005 GMC Sierra Hybrid 10#51144 X X X [x ] Comprehensive $1000
. $1000 Deductible
[ I Specified Causes
62 2005 GMC Yukon 10#81380 X X X [x I Comprehensive $1000
. $1000 Deductible
.
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9
..
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.. II II
POLLUTION LIABILITY
..
Provides coverage for any environmental impairment, emanating from any of the
covered locations, causing bodily injury or personal damage to a third party. The
.. coverage also provides for defense costs.
Environmen'tallmpairment Liability
..
Steadfast Insurance Comoanv
.. $2,000,000 Each Loss
$2,000,000 Total All Losses
..
$50,000 Deductible
. Retroactive Dale: October 1, 1996
. Endorsements 8, Exclusions to the policy:
--Schedule of Forms and Endorsements, STF-EIL-406-A CW
--Exclusion for Maintenance or Upgrading, STF-EIL-521-B CW
.. --Fungus Exclusion, STF-ENVL-1420-A
--Minimum Earned Premiums is 100%
--Covered Locations Endorsement, STF-EIL-425-A CW
.. --43 locations per submission
--Service of Suit, STF-ENVL-1437-A CA
--Terrorism DisGlosure Notice, U-GU-693-A CW
.. --Amendment of Claims Provisions, STF-ENVL-1455-A CW
--(3) Underground Storage Tanks, STF-EIL-205-B CW
.. Premium: $33,744.00
Taxes & Fees: $ 1.388.24
Total Annual Premium: $35,132.24
..
Optional Quotl!S:
.. $5,000,000 Eac;h Claim
$5,000,000 Total all claims
$50,000 Deductible $49,526.97
..
$10,000,000 E.lch Claim
$10,000,000 Te,tal all claims
.. $50,000 Deductible $63,241.44
..
10
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..
""
~ DIFFERENCE IN CONDITIONS I
.
Company Nam<~: Pacific Insurance Company Ltd
. RENEWAL #1
Difference in Conditions including Earthquake and Flood. (Flood: Excludes property
.. within the 100 year flood zone...zones A&V) Excluding Asbestos, certain computer-
related loss, contamination, pollution.
Definition of Eel Occurrence amended to 168 hours in lieu of 72.
..
$5,000,000 per occurrence and in the annual aggregate as respects Flood &
. Earthquake, Real Property, Personal Property, Contingent Liability from Building Laws.
$500,000 Sub-limit, Increased Cost of Construction, Demolition.
. Deductibles: $25,000 per occurrence, Difference In Conditions. 5% Values per unit of
insurance with respect to Earthquake. 2% Values at Time & Place of Loss, as respects
Flood.
. Optional 10% deductible quote:
.. Premium: $91,625.00 Premium: $73,240.00
Taxes & Fees: $ 5.254.91 Taxes & Fees: $ 4.161.99
Total Premium: $96,879.91 Total Premium: $77,401.99
.
..
Optional auote!s includina Business Income ($5,250.000)
.
Optional 10% deductible quote:
- Premium: $108,110.00 Premium: $86,420.00
Taxes & Fees: $ 6.185.55 Taxes & Fees: $ 5.482.77
Total Premium: $114,296.55 Total Premium: $91,902.72
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11
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...
II DIFFERENCE IN CONDITIONS I
-
. RENEWAL #2
Company NamEl: Westchester Surplus Lines Insurance
,.
Difference in Conditions Including Earthquake and Flood
,. Covering Underground Water & Sewer Piping with $5,000,000 Aggregate Limit
Deductibles: 7.1i% (5% Deductible no longer available) of the total replacement cost of
,. the damaged pipe which includes the excavation and reburial cost. Subject to $100,000
minimum per occurrence as respects earthquake.
,. Premium: $70,000.00
Taxes & Company Fee: $ 2.957.50
Total Premium: $72,957.50
..
Optional 10% Ileductible Quote:
Premium: $64,200.00
. Taxes & Company Fee: $ 2.720.45
Total Premium: $66,920.45
,.
ODtional QuotllS to include Business Income ($5.250.000)
. Premium: $75,000.00
Taxes & Company Fee: $ 3.168.75
Total Premium: $78,168.75
.
Optional 10% [)eductible Quote:
Premium: $69,200.00
.. Taxes & Company Fee: $ 2.931.70
Total Premium: $72,131.70
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12
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... II ~
COMMERCIAL PROPERTY COVERAGE
- Named Insured: East Valley Water District
Company: American Alternative Insurance Corporation
Policy Term: 10/01/05 to 10/01/06
-
$33,199,092* Real & Personal Property (Owned), Fine Arts, & Mobile Equip
(Owned), per schedule
.
$3,000,000 Co'/ered Property & Coverage Extensions
. *125% margin Glause - claim payment will not exceed 125% of the amount shown on
the statement of values on file with company.
.. Covered Propllrty: (Covered Property and Coverage Extensions will be covered up to
the respective blanket limit)
--Aboveground Piping
.. --Accounts Receivable
--Ammonia Contamination
.. --Communication Equipment
--Computer Equipment/Media
--Debris Removal
.. --Demolition & ICC
--Expediting Expenses
--Extra Expense
.. --Loss of Income
--Non-owned Mobile Equipment
--Outdoor Prop'3rty & Signs
. --Paved Surfac'3s
--Penstock
--Preservation of Property
. --Property in COC
--Real and Pel1.onal Property of Others
--Rental Value
. --Underground Piping on Insured Premises
--Utility Interruption
--Vacant Buildings
.. --Valuable Papers & Records
.
.
..
13
..
-
.,; These Extensions will be covered up to their respective sublimit:
--$250,000 Pollutant Cleanup & Removal
--$100,000 Bridge Collapse
- --$50,000 Tree!!, Shrubs, & Landscaping Planting
--$25,000 Fire Department Service Charge
. --$10,000 Arson & Crime Reward
Deductible: $2,500 per occurrence except for pump motors which has the greater
. deductible of $~~5 per horsepower or the property deductible.
Covered Perils: All risk of direct physical loss or damage to covered property, including salvage
. charges which commences during the policy period except as hereinafter excluded.
Loss Payment: ~Ictual Cash Value to replace paved surfaces, vacant buildings, and valuable
papers; Market "alue to replace fine arts; Replacement cost value to replace geomembrane
. covers, mobile equipment, and commandeered property; Replacement cost value to replace
buildings, other $tructures, fixed equipment, personal property, outdoor property,
communications equipment, computer equipment and electronic media, trees, shrubs, and
. landscape planting; Actual loss sustained for losses arising from accounts receivable,
expediting expenses, extra expense, loss of income, and rental income.
. Property Excluded:
--Aircraft, Auto~,
--Dams, ditches, canals, levees, flumes, aqueducts, or any type of water/wastewater
. conveyance
--Excavations, underground flues or drains
--Foundations, piers, or other supports that are below the surface of the ground
. --Furs, fur garments, jewels, jewelry, pearls, precious and semi-precious metals and
alloys
. --Land, atmosphere, or any body of water
--Power transmission and feeder lines
--Property that is separately described and specifically covered by other insurance
--Saltwater piers, docks and wharves
. --Stamps, letters of credit, cash or tickets
--Standing timber, growing crops, or animals
--Wells including submersible pumps greater than 50 feet
- --Underground piping away from insured premises
Notable Exclusions:
- --Mold/Fungus IS excluded where allowable
--Course of Construction Excluded for the 10 acre administrative and operating facilities
- to be valued at $13 million.
.
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14
.
...
- East VallllY Watllr District
Locations as of 10-1-05
- 1155 North Del Rosa Office Bldg $ 246,840
San Bernardino Storage Bldg $ 36,740
Shop Bldg $ 76,340
.. Storage Warehouse $ 108,900
Field Module Bldg $ 29,437
Engineer Bldg $ 52,272
.. Telemtry $ 20,000
Admin Bldg $ 99,000
Welding Bldg $ 22,000
.. 7479 San Francisco (Plant #132) Equipment $ 220,000
San Bernardino Electical $ 88,000
Chlorination Equip $ 30,000
.. Telemetry $ 10,000
S/W Corner of VictoriallTemple (Plant # 9A) Building $ 33,000
.. San Bernardino Equipment $ 88,000
Tank $ 44,000
Booster Pump $ 44,000
Electrical $ 55,000
.. Chlorination Equip $ 22,000
Telemetry $ 10,000
III S/S 6th Street, West of Pedley Rd (Plant #11) Building $ 44,000
San Bernardino Equipment $ 88,000
Electrical $ 49,500
III Telemetry $ 10,000
Chlorination Equip $ 20,000
III S/E of 6th Street & Pedley Rd (Plant #12) Building $ 44,000
San Bernardino Equipment $ 88,000
Tank $ 44,000
Booster Pump $ 66,000
.. Electrical $ 66,000
Chlorniation Equip $ 22,000
Telemetry $ 10,000
..
N/E Corner LynwoodlHarrison (Plant #24) Building $ 80,000
Equipment $ 176,000
III Reservoir $ 88,000
Booster Pump $ 88,000
Electrical $ 55,000
.. Chlorniation Equip $ 30,000
Telemetry $ 10,000
.
III
III
-
. North of Foothill Drivll (Plant #37) Telemetry $ 25,000
San Bernardino Booster Station $ 478,386
Vaults,Pipes,Elect $ 1,381,474
. Retaining Wall $ 26,918
Access Curb,Fence $ 465,262
Reservoir & Elect $ 5,223,523
. $
Date st., East of Valaria (Plant #39) Building 100,000
Materials $ 250,000
.. Equipment $ 88,000
Tanks $ 1,000,000
Booster Pump $ 300,000
Electrical $ 55,000
.. Chlorination Equip $ 22,000
Telemetry $ 10,000
.. North Side of 3rd/E of Pam Ave (Plant #40) Building $ 44,000
San Bernardino Equipment $ 88,000
Tanks $ 44,000
.. Booster Pump $ 44,000
Electrical $ 49,500
Chlorination Equip $ 40,000
Telemetry $ 10,000
.
Shasta Drive/E of Hemlock Dr (Plant #56) Building $ 44,000
San Bernardino Tanks $ 203,500
. Booster Pump $ 44,000
Electrical $ 44,000
Telemetry $ 10,000
..
N of VictoriafTermunJs Indian (Plant #123) Tanks $ 33,000
San Bernardino Telemetry $ 10,000
.. S. of Greenspot/E of Come Camp (Plant #125) Equipment $ 100,000
San Bernardino Tanks $ 44,000
Booster Pump $ 44,000
.. Electrical $ 49,500
Chlorination Equip $ 10,000
Telemetry $ 10,000
-
S/W Corner of 9th ard Sterling (Plant #127) Building $ 44,000
San Bernardino Booster Pump $ 55,000
- Electrical $ 49,500
Telemetry $ 10,000
W of Cloverhill/N of Willowood (Plant #131) Booster Pump $ 40,000
- San Bernardino Electrical $ 22,000
Tank $ 5,500
Telemetry $ 10,000
.. Equipment $ 30,000
..
..
..
... NtEt of Live Oak RdlSummit Dr (Plant #137) Tanks $ 55,000
San Bernardino Hydro T anklBld $ 33,000
Telemetry $ 10.000
- Electrical $ 38.500
Generator $ 27.500
Booster $ 40,000
- Equipment $ 30.000
City of Highland Repeater System $ 10.000
.. StS Pumalo StfW of Gutherie St (Plant #41) Equipment $ 100.000
San Bernardino Electrical $ 49.500
StEt Corner Mountain & Marshall (Plant #25) Equipment $ 100,000
. San Bernardino Booster Pump $ 44.000
Electrical $ 49.500
Telemetry $ 10.000
. Chlorination Equip $ 22,000
Marshall BlvdlW of SI:erling (Plant #27) Equipment $ 200,000
. San Bernardino Electrical $ 80,000
Telemetry $ 10,000
Chlorination Equip $ 30,000
. Court SU Between Del Roas Ave (Plant #28) Equipment $ 300,000
San Bernardino Electrical $ 49.500
Chlorination Equip $ 22.000
. Telemetry $ 10,000
NtE of Sterling & Marshall (Plant #33) Building $ 88,000
. San Bernardino Equipment $ 60,000
Tanks $ 1,232,000
Booster Pump $ 88,000
Electrical $ 55,000
. Chlorniation Equip $ 22,000
Telemetry $ 11,000
. Perris Hill (Plant # 34) Tanks $ 302,500
San Bernardino Hydro TanklBldg $ 50.000
Telemetry $ 5.500
.. Electrical $ 36.500
N of Aspen & Hemloc:k (Plant #59) Tanks $ 242.000
- San Bernardino Hydro TanklBldg $ 33.000
Telemetry $ 10.000
Electrical $ 36.500
.. N of 28thIW of LaPralx (Plant #99) Building $ 44.000
San Bernardino Tanks $ 203,500
Booster Pump $ 44,000
. Electrical $ 44,000
Telemetry $ 20,000
Equipment $ 20.000
.
.
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N/E of Mountaintop Drive (Plant #1 01) Tanks $ 385,000
San Bernardino Hydro TanklBldg $ 33,000
- Telemetry $ 10,000
Electrical $ 38,500
Baseline & Palomino St (Plant #104) Booster Pump $ 22,000
- San Bernardino Well Site $ 11,000
Telemetry $ 5,500
Electrical $ 38,500
.
Citrus SVBetween L'lma/Mountain (Plant #107) Equipment $ 200,000
San Bernardino Electrical $ 100,000
.. Chlorine Station $ 22,000
Telemetry $ 10,000
,. E of Highland Ave/N of Baseline (Plant #108) Building $ 44,000
San Bernardino Tanks $ 374,000
Booster Pump $ 44,000
Electrical $ 49,500
,. Telemetry $ 10,000
Greenspot Road (Plant #120) Equipment $ 88,000
,. San Bernardino Tanks $ 50,000
Booster Pump $ 40,000
Electrical $ 55,000
. Chlorination Station $ 40,000
Telemetry $ 10,000
. N VictoriafTerminus Indian Reserve (Plant #124) Booster Pump $ 44,000
San Bernardino Electrical $ 33,000
Telemetry $ 10,000
. Pacific & Del Rosa (Plant #130) Booster Pump $ 40,000
San Bernardino Telemetry $ 10,000
Electrical $ 22,000
,.
3rd Street & Sterling (Plant #141 ) Equipment $ 200,000
San Bernardino Electrical $ 49,500
. Chlorine Station $ 22,000
Telemetry $ 10,000
East Highland Ranch (Plant #140) Equipment $ 20,000
- San Bernardino Tanks $ 522,500
Telemetry $ 10,000
Booster Pump $ 40,000
- Electrical $ 40,000
..
.
..
-
..
N of Greensport/E of Plunge Creek (Plant #142) Equipment $ 150,000
San Bernardino Electrical $ 44,000
.. Tanks $ 40,000
Telemetry $ 10,000
P04 Chlorine $ 40,000
..
5th StIW of Church SI (Plant #146) Chlorine Station $ 40,000
San Bernardino Equipment $ 185,000
,. Telemetry $ 10,000
Electrical $ 44,000
Abbey Way Well (Plant #143) Building $ 125,000
. Equipment $ 75,000
P04 Chlorine $ 40,000
Electrical $ 40,000
.
City Creek Water Treatment (Plant #134) Tanks/Boosters, $ 10,000,000
4588 Highland Ave Treatment Equip,
,. San Bernardino Chemical storage,
Chlorination System,
Electrical Panels &
Telemetry
..
Greenspot Road/E of Cone Camp (Plant #129 Building $ 93,500
San Bernardino Tank $ 693,000
,. Booster Pump $ 176,000
Electrical $ 93,500
Telemetry $ 10,000
,.
3654 East Highland Ave #18 Contents $ 275,000
San Bernardino
,. N Fork Intake Santa Ana River (Canal) Equipment $ 50,000
San Bernardino Telemetry $ 10,000
.. Abbey/Church St (Plant #147) P04 Chlorine Station $ 40,000
APN# 1210-211-24 Equipment $ 40,000
Telemetry $ 10,000
.. Electrical $ 40,000
Van Leuven/Highlancl (Plant 148) Tank $ 300,000
.. APN# 1210-211-24 Telemetry $ 10,000
Equipment $ 20,000
.. N/E of Rockford & Holly Vista (Vacant Well) Liability Only
San Bernardino
S/W of Satinwood CrJS of Sycamore (Vacant Land) Liability Only
.. San Bernardino
..
..
-
-
Westside of Lankers~ip/S of Cypress (Vacant Land) Liability Only
San Bernardino
..
S/E corner of 9th & McKinley (Vacant Land) Liability Only
San Bernardino
.. Liability Only
1441 East Baseline (Storage USA)
San Bernardino
.. Fairfax Drive (InactivE! Well # 15) Liability Only
San Bernardino
. Lynwood Way/South of Baseline (Inactive Well #17) Liability Only
San Bernardino
.. 7th StreeUEast of Sterling (Inactive Well #20) Liability Only
San Bernardino
.. N Rosemary Dr/E Lm; Feliz Drive (Inactive Well #21) Liability Only
San Bernardino
S Railroad/E of Del Rosa (Inactive Well #26) Liability Only
.. San Bernardino
N/W 11th SUE of ColE! Avenue (Inactive Well #31) Liability Only
.. San Bernardino
S/S Baseline/E Olive Tree Lane (Inactive Well #32) Liability Only
.. San Bernardino
Date StreetIW of Big San Creek (Inactive Well #42) Liability Only
. San Bernardino - with plant #39
Church StreeUN of 5th Street (Inactive Well #43) Liability Only
San Bernardino
..
W/S/ Boulder & N Eucalyptus Street (Inactive Well #49) Liability Only
San Bernardino
,.
3999 Atlantic (Inactivo Well #94) Liability Only
San Bernardino
-
N 3rd StreeUEast of Calhoun (Inactive Well #102) Liability Only
San Bernardino
.. S of Sycamore/East ~;atinwood (Inactive Well #122) Liability Only
San Bernardino
. W/S Fairfax/North of Date Street (Inactive Well) Liability Only
San Bernardino
..
..
.-
...
Highland AvelW of C,antral Ave (Vacant Land - Patton) Liability Only
San Bernardino
-
East of Fifth Street (Vacant Land) Liability Only
San Bernardio
-
Orchid Avenue (Vacclnt Land) Liability Only
San Bernardino
,. 7th StreeUBetween Bonnie & Del Rosa (Vacant Land) Liability Only
San Bernardino
,. E Greenspot Road (Vacant Land) Liability Only
San Bernardino
. 6th Street & Sterling Ave (Vacant Land) Liability Only
San Bernardino - APN# 1192-201-23 & 24
,. 9th Street (Parcel # 1192-071-05 Vacant Land) Liability Only
Highland
,.
,.
,.
,.
,.
-
-
,.
,.
,.
,.
-
- II I
COMMERCIAL CRIME COVERAGE
-
Named Insured: East Valley Water District
Policy Term: 10/01/05 to 10/01/06
.
. Limits IDeductible Coveraae DescriDtion
$250,000 $250 Employee Dishonesty
[x] Blanket [ ] Schedule
,. $250,000 $250 Forgery and Alteration
$250,000 $250 Theft, Disappearance and Destruction per occur.
-
$100,000 $250 Computer Fraud
.
Note:
Coverage extended to directors and authorized volunteers.
.
,. II I
COMMERCIAL AUTOMOBILE COVERAGE
,.
Named Insured: East Valley Water District
Policy Term: 10/01/05 to 10/01/06
.
Coverage/Limit:
$1,000,000 Owned Automobile
- $1,000,000 Hired/Non-owned Automobile
$1,000,000 Uninsured/Underinsured Motorist
- $10,000 Medical Payments
$1,000 Deductible Comprehensive (ACV)
$1,000 Deductible Collision (ACV)
- $50,000 Hired Car Physical Damage
Special Coverages:
- --Broad Form Pollution
--Glass Repair/Replacement
.
.
15
,.
-
- ~ II
GENERAL LIABILITY COVERAGE
-
Named Insured: East Valley Water District
Policy Term: 10/01/05 to 10/01/06
-
. Bodily Injury & l:Jroperty Damage $1,000,000 Per Occurrence
$3,000,000 BI & PD Aggregate
. Personal Injury & Advertising Injury $1,000,000 Per Person
$3,000,000 PI & AI Aggregate
.- Professional Liability $1,000,000 Per Claim
$3,000,000 PL Aggregate
. Wrongful Acts $1,000,000 Per Claim
$3,000,000 Aggregate
. Employment Practices Liability $1,000,000 Per Claim
$3,000,000 Aggregate
. Employee Benettit Liability $1,000,000 Per Person
$3,000,000 Aggregate
. Fire Damage Limit $1,000,000 Anyone Premises
.- Medical Payments $10,000 Per Accident
Non-monetary Liability $5,000 Per Incident
.-
Pre-Termination Counseling $2,500 Per Incident
- Deductible: $2,500 Per Occurrence Bodily Injury
$2,500 Per Occurrence Professional Liability
$2,500 Per Occurrence GL Property Damage
- $2,500 Per Occurrence Wrongful Acts
$2,500 Per Occurrence Employment Practices Liability
$2,500 Per Occurrence Employee Benefits Liability
-
Excess Liability Coverage $10,000,000 Per Occur/Aggregate
.
.
16
.
..
- Liability Coverage Summary:
--Advertising Injury
--Backpay Awal"ds
- --Broad Named Insured
--Canals & Levees
. --Civil Rights
--Contractual
--Defense Outside Limit
. --Diminution of Property Values
--Discrimination
--Disinfectants I~elease
. --Duty to Defend
--Employee Benefits
--Employment Practices
.. --Extended Boclily Injury
--Extended Personal Injury
--Failure to Supply
. --Fire Legal Liability
--Inverse Condl3mnation
--Liquor
. --Marital Estates & Trusts
--Medical Payments
--Negligent Training/Supervision
. --Non-monetary
--Non-owned Aircraft
--Non-owned Watercraft
. --Outside Directorship
--Owned Watercraft
--Personal Injury
. --Pollution/Limited--
--Pre-Judgement Interest
--Premises/Operations
.. --Pre-Termination Counseling
--Products/Completed Operations
--Professional Liability
- --Public Officials
--Railroad Protective
--Sewer Backup
- --Sexual Harassment
--Water Contamination
--Water Testin~1 E&O
.. --Wrongful ActH
.
.
17
..
-
.. **Limited Pollution:
Pollution Liability arising out of:
--Products Hazard
- --Potablo Water
--Propane or Natural Gas
.. --Pest Abatement or spraying
--Weed Abatement or spraying
--Hostile Fire
.. --Explosion, lightning, windstorm, vandalism, or malicious mischief, collapse, riot
and civil commotion, flood, earthquake, collision, upset or overtum of mobile equipment.
--Use, handling, storage, discharge, dispersal, release, or escape of any
.. chemical used In the water treatment process.
.. Policy Notes:
--Duty to Defend policy
--Defense COStH outside the limit of liability
. --Prior acts are not available
--Mold/Fungus is excluded where allowable
--Coverage for acts of terrorism included at no additional premium charge
..
..
.
..
..
.
..
-
.
.
18
..
..
..
-
II EXCESS LIABILITY COVERAGE I
..
Company: Axi!! Specialty Insurance Company
.
Limits of Liability:
$10,000,000 Each Occurrence
.. $10,000,000 General Aggregate
$10,000,000 Products/Completed Operations Aggregate
.. Schedule of Underlying:
First Underlyinn Insurance:
Umbrella Liabillty-
. Carrier: American Alternative Ins Corp 10-1-05/06
Limits: $10,000,000 Each Occurrence
$10,000,000 General Aggregate
.. $10,000,000 Products/Completed Operations Aggregate
Defense Expense - In addition to limits
.. Premium is a minimum and deposit premium. 25% eamed premium at policy inception.
All fees are 100% fully earned.
.. Exclusion: Pollution; Asbestos; War or Terrorism; Fungi or Bacteria; Cyber Liability;
Punitive Dama!~es; Employment Practices Liability; Failure to Supply; Directors and
.. Officers Liability; Subsidence; Silica; and Violation of Statutes that Govem Emails, fax
or phone calls.
e Premium: $32,000.00
Taxes & Fees: $ 2.032.00
Total Premium: $34,032.00
..
Optional Quote:
.. $15,000,000 E;Jch Occurrence
$15,000,000 General Aggregate
$15,000,000 Plroducts/Completed Operations Aggregate
.. Premium: $44,500.00
T.axes & Fees: $ 2.735.13
T,otal Premium: $47,235.13
..
..
19
..
..
.
..
.
PREMIUM SUMMARY
.
RENEWAL QUOTE - American Alternative Insurance Corporation
..
Pilckage Policy
.. (Includes: Property/Automobile
Crime/Genera/ Liability/Excess Liability)
$306,017.00
..
P,)lIution Policy $ 35,132.24
. DIC (Real & Personal Property $5mil) $ 114,296.55
DIC (Water/Sewer Piping) $ 91,902.72
$'IOmil Excess Liability $ 34,032.00
.
.. 2004-2005 Exa:lirina Premiums
Package Policy $283,523.00
.. (this does not include
endorsements during the year)
.. Pollution Policy $ 37,687.06
DIC (Real & Pers Prop $5mil) $ 76,224.26
DIC (Water/Sewer Piping) $ 94,857.33
.. $'IOmil Excess Liability $ 34,082.00
..
Note:
--Property limits have been changed per updated schedule provided by Consuiltant with
- the exception of Plant #134 at 4588 Highland Avenue which has been increased
approximately 43%.
.. --Various vehicle changes
..
20
II
INTEGRATED MANAGEMENT PROGRAM
DEMONSTRATION PROJECT AGREEMENT
This Integrated Management Program Demonstration Project Agreement
(Agreement) is between the San Bernardino Valley Water Conservation District,
San Bernardino Valley Municipal Water District, Western Municipal Water District of
Riverside County, the City of San Bernardino Municipal Water Department, the City of
Redlands, and East Valley Water District and effective from the date of execution by an
parties to the Agreement (parties).
RECITALS
WHEREAS, the Parties have various missions, but intend through this Agreement
to provide a management structure for the purposes of (I) spreading native water as and
when available; (2) spreading supplemental water when native water is not otherwise
available to increase water levels in the upper basin (forebay); and, (3) managing
recharge to avoid deleterious impacts in the pressure zone; and,
WHEREAS, there are pre-existing agreements or judgments that impose
conditions 011 some or all of the Parties, including, the "Seven Oaks Accord," the
Western Judgment, the 1977 Big Bear judgment and the "Exchangll Plan"; and,
. . .
WHEREAS, the Parties intend that this Agreement will implement a
demonstration program, pending the preparation and full implementation of the
Integrated Management Program, as that term is defined in the "Seven Oaks Accord,"
and, as such, is intended to be of limited duration.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
TERMS OF AGREEMENT
1. This agreement shall have a term of one (I) year from execution by all
Parties (Initial Term). The Initial Term may be extended by the consent of all Parties for
four (4), one-year periods (Extension Terms). Unless all Parties make an express
determinatioa that the Agreement may extend beyond five (5) years, the Agreement shall
expire at the end of the Extension Terms.
2. The Parties shall establish replenishment targets (Replenishment Targets)
for recharge areas for the Initial Term. The Replenishment Targets established for the
Initial Term are attached hereto as Exhibit "A". At any time that it is determined
necessary, tbe Parties will review and revise the Replenishment Targets; provided,
however, that at the beginning of each Extension Term, the Parties will meet and confer
in good faith to review and revise the Replenishment Targets. Any revision to the
Replenishment Targets will be incorporated as though set forth in fun in this Agreement.
Integrated Mana.~ement Program
Demonstration Project Agreement
3. The Parties will meet and confer in good faith to prepare a mechanism for
evaluating thE' effects of the proposed Replenishment Targets, using such technical tools
and analyses as they may collectively develop. At a minimum, the Parties agree that the
groundwater model prepared by United States Geological Survey (USGS) for SBVMWD
will be utilized to determine potential effects. Additionally, available, current
groundwater levels will be analyzed. The Parties may determine that additional data are
required for analysis and, by mutual consent, develop technical rnemoranda setting forth
the information that will be considered to re-evaluate the effects of Replenishment
Targets.
4. The Replenishment Targets are not intended to be fixed limits. They are
intended to SE:rve as thresholds for additional review and analysis. In the event that any
party to this Agreement requests a change to the Replenishment Targets, then all Parties
to the Agreement shall meet and confer in good faith to evaluate the proposed change to
spreading targets, using the evaluation methodology set forth in the technical memoranda
that may be prepared as set forth in Paragraph 3. In order to change Replenishment
Targets, the Parties must achieve consensus.
5. Notwithstanding any other provision in this Agreement, the Parties will
meet quarterly, or more frequently as required, to discuss, review and analyze this
demonstratioa program and its effectiveness.
6. This Agreement may be executed in coul!-terparts.
7. This Agreement may be terminated with the written consent of all Parties.
8. This Agreement does not confer a benefit on any other person,
corporation, organization, agency or municipality; no third party beneficiary is created
through this Agreement.
9. This Agreement does not obligate funds on behalf of any Party.
10. No Party to this Agreement may use this Agreement, or any actions taken
pursuant to this Agreement, as evidence in any pending water rights proceedings.
SAN BERNARDINO V ALLEY
WATER CONSERVATION DISTRICT
Ei/~
By: :r ~- DATE: /oJ.1')c;
/
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Integrated Management Program
Demonstration Project Agreement
DATE: Id / ~/(J y
. ,
WESTERN MUNICIPAL WATER DISTRICT
OF RIVERSIDE COUNTY
By: ~r Ji ~ DATE: 1,/)-~'6lf.
CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
By:~J~ ~ DATE: / c It Ie r/
, ,
CITY OF REDLANDS
B~ !f~J>1f/k DATE: /rJ-~ - "y
Attest:
B'9'& ~3'~ DATE: /6-&-0.(
EAST VALLEY WATER DISTRICT
~
By: A~L DATE: d.c - Ocf
/
3
Aug 31 05 12:17p Larry 'N. Rowe (949) 631-8108 p.2
BasinWater@j2l'
East Valley Water District
Proposal Outline
Well 4()
August 31, 2005
1. Descliption. Basin Water Technology Group, Inc. ("Basin") will supply one (I)
Uranium wellhead treatment unit to East Valley Water District ("District") for use
to reduce Uraniuna concentrations in its Well 40.
2. Unit Description. The wellhead treatment unit is completely self-contained and is
hous~:d in a mobile container measuring lO'x40' and 9' high utilizing a strong
anion type I resin.. The unit requires a minimal electrical supply and has a foot
print of approxinaately 725 square feet.
3. Unit :Performance. The unit is designed to process up to 1,300 Gallons per Minute
("GPM").
Uranium In = 35 ugll Uranium Out = < 10 ugll
Feed Rate = 1,300 gpm Product Water = 1,300 gpm
Waste Rate = 0 gpm
4. Basin's Responsibility. Basin is responsible for the following:
A. Provide and install complete unit.
B. Assist '>/i th disposal of spent resin.
C. Guarantee Unit Performance.
D. Remote Monitoring of Unit Operation.
E. Assist with appropriate permitting.
5. East Valley Water District Responsibilities. The District is responsible for the
following:
A. Provide Pad or other suitable location for the unit.
5200 River Aven'J€. i'le.......port 8~acJ.. CCilifornia 92663 Tel: 1(909: 233.9605 F::,x: (94S') 631.8:1.08 ...Jv.......:.I]rl~irr.fJ.:ltD._Cl.im
Aug 31 05 12:18p Lany W. Rowe (949) 631-8108 p.3
Basin Water@jil'
East Valley Water District
Proposal Outline
Well 40
August 31, 2005
(Continued)
B. Provide electrical power (Approximately 40 amps).
C. Routine Operator attendance (Approximately 3 to 5 hours per week).
D. Provide for all on-site piping necessary to connect BWT Unit to the
District's distribution System.
6. Finaneial Conditions.
A. Take or Pav Contact
1.. The District will be obligated to pay Basin One Hundred and
Eighty ($180) Dollars per acre-foot for water processed that
meets or exceeds the mutually agreed to water quality objective.
It is important to note that resin disposal is one of the most
significant cost associated with treating uranium at this well. If
Basin is successful in locating a less costly resin, resin disposal
method or site, an adjustment to the per acre-foot charge will be
made.
2. The District will pay Basin a one time Deployment and
Mobilization Fee of ($50,000).
~ Contract Term is Ten (10) Years from the time the unit is
~.
permitted by the California Department of Health Services. Basin
also offers the opportunity to purchase its Ion Exchange Unit
after the initial contract term. Basin Water representatives are
available to discuss this option.
4. Take or Pay contract for a minimuna of One Thousand Seven
Hundred (1,700) Acre Feet per year.
B, Purchase Ovtion with Water Service Contract
1. The District will pay Basin Water $511,271, for the purchase of
one 1,300 gpm Uranium treatment system. This amolUlt includes
5200 River Avenue. Newpor: Bea:h. California 92663 Tel: ::fg09) 233.9605 FGx: (94'::-) G31 SlOB \'I',,"N.oaSlmV2.leLCOm
Aug 31 05 12:18p Larry W. Rowe (949) 631-8108 p.4
Basin Wafer({!;JJ!
East Valley Water District
Proposal Outline
Well 40
August 31, 2005
(Continued)
deployment, start up and assistance with California Department
of Health Services permitting.
2. The District will enter into a Water Services Contract with Basin
for spent resin replacement and assistance with its disposal. The
term of the Water Services Contract will for a minimum of Five
(5) years and provide for annual renewals thereafter, at the option
of the District. The Treatment Fee for all water processed by the
Basin Water Uranium Treatment System will be $125 per acre
foot.
.' 3. The District will be responsible of all applicable sales tax and
. fees associated "'lith the purchase of the Basin treatment system.
Basin will invoice the District separately for such Fees and or
Fees.
7. Existing and Future Water Oualitv . This proposal is based on Basin's
understanding of existing quality of water produced by Well 40 and assumes a
resin life of 75,000 bed volumes. Should the quality of the water produced by
Well 40 change over-time resulting in a resin life less than that assumed. Basin
resen es the right to adjust the writ treatment charge to reflect the increased costs
of meeting the water quality objectives.
5200 Ri'.,ter A':OilUC, Nm"'port Beach. California 92663 Tel: ?009) 233-9605 Fco<.: (949) 63i-S1.0f: w~",'w.l~3!:inwctf!r.cOI11
EAST VALLEY
WATER DISTRICT
Mel1AO
To: Robert Martin, General Manager
From: Brian Tompkins, CFO
CC:
Date: 9/20/2005
Re: Mileclge Rates
The IRS has raised the standard mileage rates for the remainder of 2005. The Business rate is now
48)12 rt per mi e, up from the 40)12 rt per mile rate previously adopted for 2005.
The increase,j rates are effective for the period September 1, 2005 through December 31,2005. .
. I recommenc that the we adjust the rate at which the District reimburses employees and directors for
the remainder of 2005 to conform with the IRS rate.
. Page 1
IRS Increases Mileage Rate Until Dec. 31, 2005 Page 1 of 1
. Internal Revenue Service IRS.goY
UE PAWIiE liT Of THE THASURY
IRS Increases Mileage Rate Until Dec. 31, 2005
IR.2005-99, Sept. 9, 2005
WASHINGTON _ The Inlemal Revenue Service and Treasury Department announced today an Increase to the opUonal slandan:! mileage
rates fo{ the nnal foor months of 2(105.
The rate wllllncrease to 4e.5 cent!. a mile for all business miles drlven between Sept. 1 and Dec. 31, 2005. ThIs is an Increase of 8 cents
from the 40.5 cent rale in effect for the first eight months of 2005, .s sel forth in Rev. Proc. 2004-64.
"This is about fairness for taxpayels: said IRS Comrrissloner Mark W. Everson. .PeopIe are entitled to deduct the real cost ofoperaUng a
vehicle. We've responded to the l"l!cenl gas price Increases by making this special adjustment so taxpayers get the tax benefit they deserve,-
In recognillon of recent gasoline pllee Increases, the IRS made this special adjustment for the final months of 2005. The IRS normally
updates the mileage rates once a '/ear In the fall for the next calendar year.
"With many predIcting a decline In gas prices over comIng months, we will hold off on seiling !he 2006 rate until doser to January; Everson
said. Next year's rate could be ICMer than 48.5 cents.
VVhlle gasoline Is a major factor In the mileage figure, ether Items enter Into the calculation of mileage rat&!, such as the price of new
vehicles and insurance.
The optional business standard m,leage rate Is used 10 compute the deductible costs of operating an automobile for buSiness use in lieu of
the extra burden of tracking actual costs. this rate Is also used as a benchmar1t by the federal government and many businesses to
reimburse their emplOyees for millage.
The new fQU(-monlh rate foreomputing deductible medical or moving expenses will be 22 cents a mile, up from 15 cents for the first alght
months of2oo5. The rate forprovi:llng services for charitable organizations Is set by statute, not the IRS, and remaIns at 1<4 cents a mile.
The annual Revenue Procedure lreludes Ilmltatlons on who Is not eligible to use the standard mileage rate.
Links:
. Ar1flDUncement 2005-71- Announcing an Incre.se to the optional standard mila age rates for the final four months of 2005. (POF
SKB, 2 pages)
Subscribe to IRS Nf'!W!Ilwlrf!
http://www.irs.gov/newsroomlarticle/0,,id=14 7 423 ,00.html 9/20/2005
.-
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AMENDMENT NO.2 TO THE AGREEMENT BETWEEN
EAST VALLEY WATER DISTRICT
AND
CAMP DRESSER & McKEE INe.
SEVEN OAKS DAM WATER QUALITY IMPACTS
East Valley Water District (District) and Camp Dresser & McKee mc, (CDM) entered into
an Agreement dated January 31, 2005 (Agreement No. 2005,01) for professional
engineering services in connection with services to report on the long and short term
treatability effect of the Santa Ana water discharged from the Seven Oaks Dam on the
District's Plant 134. This Agreement was executed in the amount of $20,000.
Amendment No.1 to this agreement dated June 17,2005 added the Plant 134
Treatability, Upgrade and Expansion Study to the original scope of work. The contract
value was in(Teased by $97,600 to a revised total contract value of $117,600.
The District desires to have all work associated with the Seven Oaks Dam Santa Ana
River water quality impacts in one agreement. Amendment No, 2 includes the
evaluation of the water quality impacts of the Seven Oaks Dam relative to the Santa Ana
River Watershed Association Group and preparing a briefing report to present their
collective position on the problem and recommended improvements or approiilches to
help mitigate the adverse impacts, It also deletes the Plant 134 Treatability, Upgrade
and Expansion Study and incorporates this study into a separate new agreement No.
2005,19 with a contract value of $97,600. The contract value for Amendment No.2 will
increase by $145,323 to a revised total contract value of $165,323.
Accordingly, the above parties hereby agree that the following provisions of the original
Agreement shall be modified as follows:
1. Agreement Convenants Number 23 Notice- notices to ENGINEER should be
addressed to Richard Comeille, P .E.
2. Exhibit A- Scope of Work- The scope of work to be conducted under this exhibit
shall be modified as shown in Exhibit A-I attached hereto.
3. Exhibi: B- Payment Schedule- The payment schedule is modified as shown in
Exhibit E-l attached hereto including a fee summary table and schedule of hourly
rates.
4. Exhibit C- Schedule- The schedule is modified as shown in Exhibit C-l attached
hereto,
C:\Documents and Settings\comeillerw\My Documents\EVWD\SOD Agreement AMENDMENT 2 9.13-05 (rev l).doc 1
.
All other conditions of the contract shall remain the same as set forth in the Agreement
between the District and ENGINEER dated January 31, 2005 for consulting services for
the Plant 134 Treatability Study of Seven Oaks Dam Discharges.
EAST VALLEY WATER DISTRICT CAMP DRESSER & McKEE !Ne.
By: By: ~J~ ~R-(it
Rober: Martin Richard W. Comeille, P,E.
General Manager Vice President
Date: Date: V.?-o / oS"
ATTACHMENTS
Exhibit A-1 Scope of Work
Exhibit B-1 Payment Schedule
Exhibit C-1 Schedule'
C:\Documents and ;enings\comeillerw\My Documents\EVWD\SOD Agreement AMENDMENT 2 9-13.05 (rev I).doc 2
EXHIBIT A-I
Study of Seven Oaks Dam Water Impacts
Scope of Work:
The following is a scope of work to provide an evaluation of the water impacts
associated with the new Seven Oaks Dam relative to the Upper Santa Anna River
Watershed Association Task Group charged with evaluating this issue and preparing
a briefing report to present their collective position on the problem and recommended
improyement or approaches to help mitigate the adverse impacts.
Task 1 - Project Management:
Specific project management tasks include daily informal staff interaction to maintain
commlmication within the project team, communication and coordination with the
District, attendance at SOD Water Task Group Meetings (up to 5 meetings assumed),
and preparation and review of project invoices.
Task 2,A -Data Collection - Background:
This task involves reviewing background information provided by the Task Group
members to assist in developing background write-ups on the Task Group Agencies
and to help define the problem situation requiring rectification by the Army Corps of
EnginE,ers as a result of the Seven Oaks Dam impacts on the Santa Ana River. Section
2 of the attached report outline identifies the background information to be
developed. The data to be collected and reviewed will pertain to describing the Task
Group Agencies, the Seven Oaks Dam, the historical water quality and Current water
quality impacts, historical flows and flow impacts, and the quantity of SAR water
allocated to the Task Group Agencies.
Figures will be developed to compliment the background presentation in the report.
Howe'1er, CDM will only be responsible for developing schematic type figures. Costs
associated with GIS based figures development are not included with the exception of
minor coordination and direction activities by CDM. These figures are assumed to be
develcped and provided using the Task Group Agencies staff and resources.
Task 2,B -Alternatives Development and Evaluation:
This t,sk involves developing general descriptions and approaches for altematives to
mitigate the impacts of the Seven Oaks Dam relative to water quality and flows. The
Task Group objective is to for the Army Corps to supply SAR water that is no worse
than historic water quality, The impact of the Seven Oaks Dam relative to flows will
be reviewed relative to documentation already developed and will be surrunarized in
the report. The alternatives to be developed for plarming level purposes are listed in
Section 3 of the attached report outline. Conceptual level layouts and plarming level
costin:s will be developed for alternatives evaluation. Detailed, site specific features
will not be included as those are more appropriate for more detailed follow-up
studies. A recommended alternative or grouping of alternatives will be developed in
conjunction with the Task Group, Recommendations for improvements that can be
imple:nented in the short term will also be provided. The assumption is that these
COM 1-1
c.\Oo..........nts and Seltir>gs\com.ilervM1y DoclJlTl.IlII'.EVWO\SOD wa Seepe ~t>,bils A.c ll.S.05.doc
will all be planning level recommendations and will require further confirmation and
development in follow-up studies not included in this Scope.
Task 2,C - Letter Report:
A letter report will be prepared per the attached outline. A draft will be developed
and provided to the Task Group agencies for review. Comments will be addressed in
a group meeting and those for which there is a consensus will be addressed in the
report. It is anticipated that the letter report will be between 20 to 40 pages in length
including figures and appendices. Figures will be developed to compliment the
backgrc'und presentation in the report. However, CDM will only be responsible for
developing schematic type figures. Costs associated with GIS based figures
development are not included with the exception of minor coordination and direction
activitiES by CDM. These figures are assumed to be developed and provided using
the Task Group Agencies staff and resources.
Task 3 -- Quality Management:
This task includes a quality technical review and project closeout activities.
COM 1-2
C-\Ooclnlenls Ind Set1ings\colNill.,wMy ()gCl.menls'EVWO\.SOO '0'10 Scope E;.hib,!s A-C &-5-05 doc
.
SEVEN OAKS DAM WATER IMPACTS
Executive Summary
1.0 Introduction
2,0 Background
2. I Seven Dab Dam
2,2 Upper Santi Ana River Water Users
2.3 Historical Water Quality
2.4 Historical Flows
2.5 Water Quality Impacts due to SOD (including regulatory issues)
2.6 Flow Impac ts due to SOD
3,0 Alternatives for Mitigating SOD Water Impacts
3,] General
3,2 Treatment Approaches
3,2,1 Centralized Pre-Treatment
3,2.2 Centralized Potable Treatment
3,2.3 De-Centralized Water Treatment
3.2.4 In-Reservoir Treatment
3.3 Diversion Approaches
3,3.1 Harden SCE FacilitieslNew Upstream Diversion
3.4 Operational Approaches
3.4,} Modify the Seven Oaks Dam Control Manual
3,5 Alternatives Evaluation
4.0 DiscussionJReccmmendalions
4,} Recommended Alternative
4.2 Recommended Implementation Schedule
4,3 Recommended Shon-Term Improvements
List of Figures
1-1. Location Map
1-2. SAR W atef! hed
2-1. Seven Oaks Dam
2-2, Upper Santa Ana River Water Users
2-3. Direct Delivery - EVWD, City of Redlands
2-4, Groundwater Recharge - SBVWCD
2-5, Conservatio 1 -SBVMWD
2-6, Historical Water Quality Chart 1
2-7, Historical Water Quality Chart 2
2-8. Historical Flows Chart I
2.9, Historical Flows Chart 2
2-lO. S0D Impacted Water Quality Chart I
2-11. SOD Impacted Water Quality Chart 2
3-1. Centralized :?re- Treatment Process Flow Diagram
3-2. Centralized :Potable-Treatment Process Flow Diagram
3-3. De-CentraJb:ed Potable-Treatment Process Flow Diagram
3-4. In-Reservoir Treatment Process Flow Diagram
3-5. Upstream D;version Process Flow Diagram
3-6. Seven Oaks Dam Figure (to help explain operational control mods?)
3-7. Alternative Locations for Centralized Pretreatment
3-8, Alternative Locations for Centralized Potahle-treatment
3-9, Location for Upstream Diversion
3-10, Combined Alternatives??
4-1. Recommended Alternative
EXHIBIT B-1
PAYMENT SCHEDULE
See Fee Summary and Schedule of Hourly Rates attached.
COM 1-3
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Exhibit B-1
CAMP DRESSER & McKEE INC.
SCHEDULE OF HOURL Y RA TES
EAST VALLEY WATER DISTRICT
January 1, 2005
Categories Hourly Rate
Engineers/Scientists/Planners:
Grade 1 $ 90.00
Grade 2 100.00
Grade 3 115.00
Grade 4 125.00
Grade 5 135,00
Grade 6 145.00
Grade 7 155.00
Principal 165.00
Associate 180.00
Vice President 190.00
Sr. Vice President 200.00
Support Service:
Designer Drafter 1 55.00
Designer Drafter 2 .65,00
Designer Drafter 3 75.00
Designer Drafter 4 80.00
Designer Drafter 5 85,00
Designer Drafter 6 95.00
Designer Drafter 7 110.00
Designer Drafter 8 120.00
Administrative Manager 85.00
Administrative Assistant/Word Processor 70,00
Office Clerk 50.00
Financial Manager 100.00
Contract Administrator 85,00
Finance Assistant 55.00
Miscellaneous Expenses;
Auto Mileage Current IRS Rate
Computer Time - PC 4,OO/Hour
Computer Time - AutoCAD 12.00/Hour
Reproduction Services
Black and White Copies $O,10/Page
Color Copies $1.00/Page
Outside Services Cost + 10%
Materials and Other Expenses Cost + 10%
c, \OccUltlents .nd Settjn9s\corneiller...\l~ Documl!nt.S\EVl'lD\E~1D !U\.'::'ES 2005.doc
.
EXHIBIT C-l
SCHEDULE
The Se...en Oaks Dam Water Impacts letter report will be completed by November 18,
2005.
COM 1-4
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Kiwanis Club of Highland, Ine ~
PO Box 1066 "_ __
Highland CA 92346 L,i0ltliw::o
Ed Morden, President 2004-~ 16 2005
.'..tV"lf^y 1;'--' D' .
... H..ll)) rii::ler i':j'~';f't
lJ~i 1\,/.
2004-2005 OffICers September 14, 2005
Ed Morden, President
Linda Brook, Pres, Elect On behalf of the Kiwanis Club of Highland, Inc. I would like to thank you for
Paul Scott, Vice Pres Darticipating in our first Car and Motorcycle Show held last weekend in
Jerry Patterson, Treasurer
Sue Hulse, Secretary conjunction with the Highland Area Chamber of Commerce Discover Highland
Night.
Board of Directors
Penny Lilburn The turnout far exceeded our expectations, and your involvement really made
Harriet Foucher
Heck Thomas the entire evening a great success, In addition, this activity will allow our club to
Arlene Johnson make a major donation to the Kiwanis International Foundations' Relief Fund to
Marshand Noriega directly benefit those impacted by Hurricane Katrina. For this, we appreciate
Hazel George your generosity!
Sponsored Youth
Pacific HS Key Club Although our main service is to the children of the world, this event proved to us
Warm Springs Ele K-Kids that there is no age limit to being a child. Thank you for sharing your hobby and
passions not only with our club members, but with the city of Highland!
Please feel free to drop us a line with your comments and/or concerns on how
the evening went for you. We hope to possibly make this an annual event, and
your input is welcome, And, we hope you will consider being a part of it!
Again, thank you for your involvement.
Sincerely, ~
4LiL ' V?
,/ ,
Sue Hulse, Secretary
CeiebraJuorvg;J 1/J JF?iaJrs of Se/ivoce to the Commlmir!jr
Benefit Golf Tournament ~1.GHL~
G ~
~ Q
Coming together to celebrate and support ~ ~
Highland's continued growth! ~ 0
October 20" 2005 ~ ~
:l(!J(!J{j
San Bernardino Golf Club
$75.00 per person / $300.00 per foursome The following sponsorship
Toumament Registration Includes: Opportunities are available to you.
Please let us know which ones
4-Person Scramble Play, 18 Holes of Golf and Cart you would like
Goodie Bag at Check In and Awards Dinner to take advantage of.. ..
.- Toumamerit Schedule
Check-In Begins at 11:15am Gold Suonsor - $500
Foursome - Tee Sign
Free Range Balls Banner on Course
from 11:30am-12:30pm Recoguition on Program
Putting Contest Recognition at Awards Dinner
at 12:00pm Contest Soonsor - $300
Shotgun Start (lncludu Putting Conr-It Longrst DrivI
at 12:30pm and Cltn,st to th. Pin)
Twosome - Contest Tee Sign
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ . . . . . . Recognition on Program
0 ~: Recognition at Awards Dinner
o 4-Person Scramble GOLF REGISTRATION
0
0 0 Tee Sitm Soonsor - $125
o Name: 0 Tee Sign
0 0
0 0 Recognition on Program
o Company: PIL 0 Recognition at Awards Dinner
0 0
0 .
o Address: City, Zip, . Hole-in-One Soonsor
0 . Tee Sign
. .
o Player 1: Shirt Size_ Ph, . Recognition on Program
0 . Recognition at Awards Dinner
0 .
o Player 2: Shirt Size_ Ph. 0
0 . Door. Rarne or Auction Prize
0 Shirt Size_ Ph, 0 Recognition on Program
o Player 3: .
. . Recognition at Awards Dinner
. Player 4: Shirt Size_ Ph. .
. . Product Soonsor (Otv 144)
. 0
. Total Enclosed $ . Recognition on Program
. . Recognition at Awards Dinner
. Make check payable to: Highland Area Chamber of Commerce .
. Mail with entry form to P.o. Box 455, Highland Ca. 92346 . For more information
. .
. The H:ghland Chamber is a non7Jrofit orgalJizaffon. .
. A POrtiOIl ofyollr golff..s are tax deductible. Tax J.D. # 33-047-0J17 . 864-4073
0 .
. . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Please hdp us continue to be Highland's Information Center along with supporting
our efforts in supporting our Business Community!