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092022 Grand Jury Report Water in OC Agenda Report

City Council - Successor Agency - Housing Authority
September 20, 2022

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092022 Grand Jury Report Water in OC Agenda Report
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September 20, 2022
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City Council - Successor Agency - Housing Authority
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Agenda Report
Fullerton City Council
MEETING DATE: september 20, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Meg mcwade, public works director
PREPARED BY: AL SHEIKH, ACTING PRINCIPAL WATER ENGINEER SUBJECT: CITY OF FULLERTON RESPONSE TO GRAND JURY REPORT – WATER IN ORANGE COUNTY NEEDS “ONE VOICE” (Continued from September 6, 2022)

SUMMARY
Staff requests City Council approve a response to the June 22, 2022 Orange County Grand Jury report titled Water in Orange County Needs “One Voice”.

RECOMMENDATION
Approve City of Fullerton response to the Orange County Grand Jury Report – Orange County Needs “One Voice” and authorize Mayor Jung to execute and submit the letter.

CITY MANAGER REMARKS
After further conversation with the Public Works Director, the City Manager continues to recommend authorization to submit the attached response.

In addition, the City Manager requested a short extension for response due to the date of the City Council vote, which the OC Grand Jury approved.

PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:

Infrastructure and City Assets.

FISCAL IMPACT
This action generates no fiscal impact.

DISCUSSION
Update from September 6, 2022 City Council Meeting – City Council considered this item at the September 6, 2022 Meeting. City Council requested staff provide the response letters from Orange County Water District and Municipal Water District of Orange County. Staff has included the letters as attachments to this report.

The Orange County Grand Jury released a 24-page report titled Water in Orange County Needs “One Voice” on June 22, 2022. The attached report included six findings and two recommendations calling for a “single leadership structure, whether through consolidation of existing dual entities (Orange County Water District - OCWD and Municipal Water District of Orange County - MWDOC) or creation of a new water authority to “lead all aspects of Orange County wholesale water” to “operate with ‘one water voice.’” The following lists the findings and recommendations from the Grand Jury Report:

Findings:

F1 A singular water authority for Orange County’s wholesale water supply likely would result in further opportunities at the local, State, and federal levels in legislation, policy making and receiving subsidies and grants.

F2 The current fragmented water system structure and operations provides challenges as it relates to development of new interconnected infrastructure as well as maintenance of existing systems.

F3 There is a great disparity between the North/Central and South Orange County water sources, management, and operations carried out by OCWD and MWDOC.

F4 South Orange County has many smaller retail water districts that lack a formal centralized leadership. Notwithstanding this lack of structure, South Orange County retail water districts have displayed effective collaboration when dealing with one another.

F5 Orange County Water District is a recognized worldwide leader in groundwater resource management and reclamation. Its leadership, innovation, and expertise can be further utilized to serve all of Orange County in developing additional innovative and beneficial programs.

F6 Orange County currently does not have a countywide coordinated policy regarding water conservation, which results in difficulty when complying with any new State-mandated conservation regulations.

Recommendations:

R1 By January 2023, Orange County wholesale water agencies should formally begin analysis and collaboration towards forming a single wholesale water authority or comparable agency to operate and represent wholesale water operations and interests of all imported and ground water supplies. (F1, F2, F3, F4, F6) Page 103 of 149 Water in Orange County Needs “One Voice” 2021-2022 Orange County Grand Jury Page 17 R2 Any future “One Voice” consolidated Orange County wholesale water authority should have Directors that examine and vote on issues considering the unique needs of all water districts. (F1, F2, F3, F4, F6) The Grand Jury report requires MWDOC and OCWD to submit responses to the Presiding Judge of the Superior Court regarding all findings and recommendations in the report. As a groundwater pumper, the City of Fullerton is a member agency of OCWD, the groundwater agency that manages the Orange County Water Basin. The City also partners with MWDOC on many programs and projects as a fellow direct member agency of Metropolitan Water District of Southern California – the region’s import water provider. As a result of Fullerton’s role in Orange County water, the Grand Jury has requested, but not required, the City to submit a response letter no later than September 20, 2022 - 90 days after publishing the report. If the City opts to provide a response, the letter should address the following findings and recommendations:

Staff recommends City Council approve the attached response letter. The letter does not support the creation of a singular water agency to oversee groundwater and import water. The response provides support for the existing agencies and their respective roles: OCWD – in the area of groundwater management and MWDOC – in the area of import water for its member agencies as well as a partner to its three fellow MWD member agencies in Orange County – Santa Ana, Anaheim and Fullerton. Each of these agencies has a professional focus and specialized expertise related to their water areas as well as a representative governance structure. Opportunities exist to partner to advocate for Orange County water issues. The response also encourages continuing coordination as well as increased focus on the unifying goals related to Orange County Water – system accessibility, legal compliance, water quality, water reliability, water conservation, etc.

Alternatively, City Council could provide direction to either:

Revise the letter supporting the recommended potential consolidation of the two agencies or establishment of a new water authority for “One Voice” for water issues in Orange County.

OR
Allow the deadline to pass without responding to the request to comment.

Attachments:

Attachment 1 - Draft Letter from City of Fullerton
Attachment 2 - Orange County Grand Jury Report
Attachment 3 - Orange County Water District Response Letter Attachment 4 - Municipal Water District of Orange County Response Letter cc: City Manager Eric J. Levitt
Response to Grand Jury Report – Water in Orange County Needs “One Voice” September 20, 2022 - Page 2

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