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Home My WebLink About09. Consider endorsing Proposition 3, The Water Supply and Water Quality Act of 2018 Page 1 of 16 Item 9. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: AUGUST 16, 2018 SUBJECT: RECEIVE PRESENTATION BY MATTEO CROW, AND CONSIDER ENDORSEMENT OF PROPOSITION 3, THE WATER SUPPLYAND WATER QUALITYACT OF 2018 SUBMITTED BY: INITIATING DEPARTMENT: MELODY LABELLA, RESOURCE RECOVERY ENGINEERING AND TECHNICAL SERVICES- PROGRAM MANAGER PDS-RESOURCE RECOVERY REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE Board authorization is required for Central San endorsement of ballot measures. BACKGROUND Proposition 3, the Water Supply and Water Quality Act of 2018, is a citizen's initiative water bond that will appear on the November 2018 statewide California ballot. On April 25, the California Secretary of State announced that sufficient signatures had been submitted to place the water bond on the ballot. The bond will invest$8.877 billion dollars in California water infrastructure, which includes $400 million for recycled water projects and $250 million for Bay Area Regional Reliability, of which water exchanges are one of the recommended projects. The water bond's Campaign Coordinator, Matteo Crow, will be delivering the attached presentation at Central San's August 16, 2018, Board meeting and seeking Central San's endorsement. As it pertains to August 16, 2018 Regular Board Meeting Agenda Packet- Page 88 of 149 Page 2 of 16 ballot measures, Central San's endorsement means that Central San's name may be added to the list of supporters on the website and in outreach by the ballot measure's sponsor. Central San will do no active advocacy on the topic. Additional information on this water bond can be found at: https://waterbond.org/. ALTERNATIVES/CONSIDERATIONS The Board of Directors could elect not to endorse this water bond; however, that is not recommended, since Central San's Refinery Recycled Water Exchange Project could potentially benefit from the funding provided by this water bond, if it is passed by California voters in November 2018. FINANCIAL IMPACTS There is no cost to Central San in endorsing this water bond. COMMITTEE RECOMMENDATION This item was not considered by a Board Committee. RECOMMENDED BOARD ACTION Consider endorsing Proposition 3, the Water Supply and Water Quality Act of 2018. Strategic Plan re-In GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability Strategy 1 -Augment the region's water supply ATTACHMENTS: Attachment 1 - Presentation August 16, 2018 Regular Board Meeting Agenda Packet- Page 89 of 149 November Water Bond Initiative Proposition 3 : The Water Supply and Water Quality Act of 2018 Matteo Crow Campaign Manager August 16, 2018 Status of Prop . 1 Funds • $2 . 7 billion in storage funds being allocated by California Water Commission in 2018 ( Enlarged Los Vaqueros $459 million ) • Of remaining $4. 8 billion, $ 1 billion is still to be allocated by legislature • Prop . 1 funds will be largely exhausted by 2019 August 16, 2018 Regular Board Meeting Agenda Packet- Page 91 of 149 2 Proposition 68 • Legislative bond : SB S ( DeLeon ) • June vs . November • Small overlap ( 18%) • Voters forget after S months • Need for compatible campaigns August 16, 2018 Regular Board Meeting Agenda Packet- Page 92 of 149 General Fund Debt Service Ratio Percen t of General Fund Revenues Spent on Debt Service 7%- .O 6 Proposed Natural Resources Bonds 5 4 Authorized, but Unsold 2 Bonds Already Sold 1 95-96 — 1 05—`)6 1 —11 15-1 C; 20-21 25-26 Projected August 16, 2018 Regular Board Meeting Agenda Packet- Page 93 of 149 4 86125. Two hundred and fifty million dollars ($250,000,000) is appropriated from the Fund to the department for a grant to the group of eight water agencies collectively known as the Bay Area Regional Reliability Partnership (BARR) for new facilities that extend the benefits of surface water storage for region-wide benefits in any of the following areas: drought supply reliability, drinking water quality, and emergency storage, as generally described in the Final Mitigation Project List contained in the San Francisco Bay Area Regional Reliability Drought Contingency Plan. The Contra Costa Water District may receive the grant on behalf of the Partnership unless the BARR Partnership has a governance structure in place at the time of the grant award that makes its eligible to receive the funds directly. The participating water agencies in the San Francisco Bay Area Regional Reliability Drought Contingency Plan will determine and designate funds to one or any of the listed projects, however in no case will the amount determined for any single project be more than 50% of the project's total cost. No funds appropriated pursuant to this section may be spent to build new surface storage, or raise existing reservoirs. August 16, 2018 Regular Board Meeting Agenda Packet- Page 94 of 149 KeyFunding Areas • Wastewater recycling $400 million • Groundwater desalination $400 million • Water Conservation $300 million • SF Bay Restoration Authority $200 million • Stormwater management $400 million • Delta wastewater treatment $ 15 million • Bay Area Regional Reliability $250 million • North Bay Aqueduct Planning $5 million • Watershed Restoration in Sierra Nevada $200 million August 16, 2018 Regular Board Meeting Agenda Packet- Page 95 of 149 KeyFunding Areas • Bay Area Conservancy $100 million • Delta Conservancy $100 million • Natural Community Conservation Plan $60 million implementation • Wildlife Conservation Board $240 million • State Parks watershed restoration and $150 million water systems • Department of Conservation watershed $60 million restoration and ag land program August 16, 2018 Regular Board Meeting Agenda Packet- Page 96 of 149 KeyFunding Areas • Urban Streams $50 million • Non-motorized river and lake access $20 million • Cal Fire and watershed mitigation $50 million • Land management for water supply $ 100 million • Sustainable Groundwater $640 million Management Act implementation • Fisheries restoration $ 1. 15 billion • North Bay Aqueduct relocation $5 million planning August 16, 2018 Regular Board Meeting Agenda Packet- Page 97 of 149 Other Key Funding Categories • Safe Drinking Water $500 million • Wastewater for DACs $250 million • Flood Management $500 million • Oroville Dam Repair $200 million • Repair Friant Kern Canal $750 million • Salton Sea $200 million August 16, 2018 Regular Board Meeting Agenda Packet- Page 98 of 149 Water Supply Benefits of the Water Supply and Clean Water Bond Initiative Based on Investment and Required Matching Funds Drought Year Supplies Supply in Acre- Source Feet/Year Wastewater recycling 124,000 Desalting 70,000 Stormwater capture 101,000 Urban water conservation 589,000 Watershed management and treatment 661,000 Repair of flood control dams 20,000 Repair of Friant Kern Canal 200,000 TOTAL 11765,000 August 16, 2018 Regular Board Meeting Agenda Packet- Page 99 of 149 History of Voting on California Water Bonds 1960 Burns Porter Act. Bond. Established State Water Project 1970 Recreation At State Water Project; Fish And Wildlife Enhancement Clean Water Bond Act 1974 Clean Water Bond Act 1976 Safe Drinking Water Bond Act 1978 Clean Water and Water Conservation Bond 1980 Amend Safe Drinking Water Bond Act of 1976 1984 Safe Drinking Water Bond Act Clean Water Bond Act 1986 Water Conservation And Water Quality Bond Safe Drinking Water Bond Act 1988 Water Conservation Bond Act Clean Water and Water Reclamation Bond Act Safe Drinking Water Bond Act 1990 Water Resources Bond Act 1996 Safe Reliable Water Supply Bond Act 2000 Parks, Water, Air Coast Bond Act Water Bond Act 2002 Parks, Water, Air, Coast Bond Act Water Quality Supply Safe Drinking Water Initiative 2006 Water Bond Act Initiative Disaster Preparedness and Flood Prevention August 16, 22ONgular BdVVM1 (FtiQLM�ft &aPP1Y,a3-(re9 tM8nt, Storage • Prop. 1 water bond statewide (2014: 67%) • Measure AA SF Bay Restoration (2016: 70%) • Governor position; candidates for Governor • Strong inter-sector support • Contra Costa County — Senator Feinstein, GOP gubernatorial candidate Cox — California Building Industry Association, California Chamber of Commerce, Business Properties, Bay Area Council — Ducks Unlimited, California Waterfowl Association, Save the Bay, Calif. Native Plant Soc., Sustainable Conservation — Association of California Water Agencies, No. Calif. Water Assoc., So. Cal . Water Coalition, Alameda CWD, Solano CWD — Rice, Fresh Fruit, Cotton, Pistachio, Dairy, Ag Council — EJ : Community Water Center, Leadership Counsel for Justice August 16,?0'1 4 g�T&rg9aY Det'i1� Atha Packet- Page 101 of 149 April 2 18 Polling R After reading ballot label : 61% After positive arguments : 66% August 16, 2018 Regular Board Meeting Agenda Packet- Page 102 of 149 13 Questions ? August 16, 2018 Regular Board Meeting Agenda Packet- Page 103 of 149 14