That the City Council:
A.  Approve and authorize the City Manager to execute a Notice of Nomination of Directors for the California Domestic Water Company (CDWC) Board to nominate Richard Jones for the office of Director; and,

B.  Approve and authorize the Mayor and City Clerk to execute proxy votes for the election of Directors to the CDWC Board for the election to be held at the CDWC Annual Meeting of Shareholders scheduled on November 15, 2024.

The City of La Habra is one of three major shareholders of the California Domestic Water Company (CDWC). The City's shareholder status allows it to purchase wholesale water from CDWC to provide to La Habra water customers. Each year CDWC sends its shareholders a proxy prior to its Annual Meeting of Shareholders for the election of candidate nominees to its Board of Directors. The CDWC Board of Directors is a six-member board elected by the three major shareholders. As one of the major shareholders, along with the City of Brea and the Suburban Water Systems Company, the City of La Habra has the opportunity to nominate two individuals to be considered for the six member CDWC Board of Directors. The two Directors currently serving as La Habra nominees are Mr. Richard Jones (term expiring in 2024) and Mr. Don Hannah (term expiring in 2025). This year there are three open board positions and the nominees, each to serve two-year terms, include:

Nominee Richard Jones
Richard Jones has served on the CDWC Board since 1993, first as a Director and then as Chairman of the Board from 1995 through 2020. He is the City Attorney for a number of Southern California cities, including the cities of La Habra, Whittier, Fullerton, and Westminster. Mr. Jones also serves as General Counsel to the Gateway Cities Council of Governments and represents special agencies and Joint Power Authorities. He has more than 40 years of experience, most of which is in the area of municipal law. 

Through his public and private experience, Mr. Jones offers legal expertise on a wide range of topics involving municipal agencies. He is responsible for municipal personnel matters, including negotiations with labor organizations, development of general plans, and zoning. He is also an expert on conflict and procedural issues, including the Brown Act. Prior to establishing the Law Office of Jones & Mayer, Mr. Jones owned the Law Office of Richard D. Jones, and before that was a member of the firm of Shay, Stirling, Jones and Jones. 
 
Mr. Jones has lectured at the California League of Cities and other conferences on a variety of legal topics and was a professor at Whittier College for more than 10 years. Mr. Jones was also a long-time elected member of the Lowell Joint Elementary School District Board of Trustees and served as Board President on four occasions. He has been President of a local Chamber of Commerce, Boys & Girls Club, Kiwanis Club, as well as Citizen of the Year. He has been a Rotarian for more than 20 years and serves on the Board of Trustees for Marshall B. Ketchum University. He is a past president of the Orange County City Attorneys Association and served as a statewide representative to the California League of Cities Legal Advocacy Committee.

Nominee Christopher Blake
Christopher Blake has been nominated by the City of Brea and has served on the Board at CDWC since 2016, first as a Director and then as Chief Financial Officer since 2021. Mr. Blake earned his Bachelor of Science degree in Finance from California State University, San Diego and his Juris Doctor degree from Western State University Law School. Mr. Blake has worked in the banking industry since 1982, primarily in commercial/industrial lending and commercial real estate/construction lending. He joined Pacific Western Bank in 1994 as head of Corporate Banking, was appointed Chief Credit Officer in 1996, Chief Operating Officer in 1999, President of the Eastern Region in 2002, Executive Vice President of Human Resources in 2014, and President and Chief Executive Officer of the Community Banking Group in 2018. Pacific Western Bank is a $21 billion nationwide commercial bank with approximately 1,700 employees.

Nominee Michael Quinn
Michael Quinn has been nominated by Suburban Water Systems and has served on the CDWC Board since 1995. During the term of this tenure on the Board, Mr. Quinn has served as Chief Financial Officer and Vice Chairman for CDWC. Following his 47-year career in the water and wastewater industry, Mr. Quinn announced his retirement from SouthWest Water Company at the end of 2017. Before his retirement, he served as President and Chief Executive Officer of SouthWest Water Company and President of Suburban Water Systems. Other positions and appointments included serving as President of the SouthWest Water Company Utility Group from its inception in June 2002 until December 2009; Chief Operating Officer for Suburban Water Systems from 1992 to 1996; President of ECO Resources, Inc. from 1985 to 1992; and Controller/Treasurer of Suburban Water Systems from 1981 to 1985.  Among his water industry affiliations, Mr. Quinn is a past President of both the California Water Association and the National Association of Water Companies, and he represents Suburban Water Systems as a member on the boards of CDWC, Cadway, Inc., and Covina Irrigating Company. He is also a past director of the Main San Gabriel Basin Watermaster. 

If approved by Council, the proxy needs to be executed and returned to CDWC no later than Tuesday, November 12, 2024, in order for it to be considered for the election that will be held during the CDWC Annual Shareholders Meeting on Friday, November 15, 2024.

There is no fiscal impact for this action; however, CDWC board members receive a $200 stipend per meeting for up to eight meetings per month, for a maximum of $1,600 per month depending on the total number of meetings attended. CDWC board members also receive an additional fixed stipend of $600 per month from CDWC’s wholly owned subsidiary, Cadway, Inc.

The City currently holds 2,581.25 shares of CDWC Capital stock and 912.85 shares of CDWC Class A Preferred stock.

This recommended action achieves the following elements of the Fiscal Year 2024-2025 City of La Habra Goals and Objectives:
2A - Closely monitor revenues, expenditures, and fiscal trends to ensure the City's long-term fiscal stability.
2B - Regularly review and evaluate programs, services, and professional agreements to assess effectiveness and identify opportunities for greater efficiencies and cost containment.
2C - Identify and pursue funding opportunities for City capital improvement projects, including City buildings, facilities, infrastructure, and recreational outlets, as well as non-City projects that could be of value to the community, such as local school districts.
3F - Maintain and improve sewer, water, and storm drain systems.