At 8:30 am President Hinman called to order the Regular Meeting of ...

MINUTES OF THE ADJOURNED REGULAR MEETINGOF THE BOARD OF DIRECTORSMUNICIPAL WATER DISTRICT OF ORANGE COUNTYJune 25, 2007At 8:30 a.m. President Hinman called to order the Regular Meeting of the MunicipalWater District of Orange County in the Board Room at the District facilities located inFountain Valley. Director Royce led the Pledge of Allegiance and Secretary Goldsbycalled the roll.MWDOC DIRECTORSErgun "Eric" BakallBrett R. Barbre (absent)Wayne A. ClarkLarry DickJoan C. FinneganSusan HinmanEd Royce, Sr.STAFFKevin Hunt, General ManagerKarl Seckel, Assistant Gen. Mgr.Dan Payne, Legal CounselMaribeth Goldsby, Board SecretaryDeven Upadhyay, Principal AnalystMatt Stone, Associate General ManagerJudy Pfister, Sr. AccountantALSO PRESENTDick DietmeierMike DunbarVikki BeatleyTrudy Ohlig-HallBob KellisonPeer SwanDon ChaddSteve AndersonSouth Coast Water DistrictSouth Coast Water DistrictMesa Consolidated Water DistrictMesa Consolidated Water DistrictCity of Fountain ValleyIrvine Ranch Water DistrictTrabuco Canyon Water DistrictMWDOC MET DirectorPUBLIC PARTICIPATION/PUBLIC COMMENTPresident Hinman announced members of the public wishing to comment on agenda itemscould do so after the item has been discussed by the Board and requested members of thepublic identify themselves when called on. President Hinman asked whether there wereany comments on other items which would be heard at this time.Mr. Richard Dietmeier (South Coast Water District) expressed concern with the SmarTimerProgram, noting that he believed under drought conditions using a SmarTimer couldincrease water usage, which would then increase water bills. He did note, however, thatthe device has a manual “on/off” switch which could be enabled in drought conditions. Herequested that staff research his concerns and provide him additional information on thisissue.ITEMS RECEIVED TOO LATE TO BE AGENDIZEDDetermine need and take action to agendize items(s), which arose subsequent to theposting of the Agenda. (ROLL CALL VOTE: Adoption of this recommendation requires a

Minutes June 25, 2007DISTRICT CONFERENCES/MEETINGS/SEMINARSThe Board authorized attendance by Directors and such members of District staff asapproved by the General Manager for the following conferences, meetings, and seminars:• Delta Vision Workshop, Fresno Convention Center, July 27, 2007• ACWA Fall Conference, November 27-30, 2007, Indian Wells, CASMARTIMER AND EDGESCAPE EVALUATION PROJECT – INCREASE TOSIERRA ANALYTICAL CONTRACTThe Board authorized an increase of $55,200 to the Sierra Analytical purchase requisitionto test for three additional water quality constituents for a total of $220,800. This increasewill be funded by grants from the SWRCB, lowering rebate incentives to be paid toparticipants for site improvements.SELECTION OF DISTRICT AUDITORThe Board authorized the General Manager to engage Diehl Evans & Company to performthe District’s annual audit for the fiscal year 2006-07.ACTION CALENDAREND CONSENT CALENDARMWDOC RATES AND CHARGES FOR FISCAL YEAR 2007/2008 (ADOPTWATER RATES RESOLUTION)President Hinman stated that the Administration & Finance Committee reviewed this itemand recommended it for Board approval. Legal Counsel explained that the Resolutionincluded in the Board packet was inadvertently printed with a few typographical errors andthat a corrected version of the Resolution in the form recommended for approval by theAdministration & Finance Committee had been provided to the Board, and that copies wereavailable to the public at this meeting. Upon MOTION by Director Bakall, seconded byDirector Finnegan, and carried (6-0), the Board adopted RESOLUTION NO. 1805,Establishing Water Rates to be effective in July 2007 or January 2008 (as outlined in theResolution), by the following roll call vote:AYES:NOES: NoneABSENT:ABSTAIN:Directors Bakall, Clark, Dick, Finnegan, Hinman & RoyceDirector BarbreNoneRESOLUTION SUPPORTING THE CANDIDACY OF ARLENE SCHAFER FORRE-ELECTION TO THE CALIFORNIA SPECIAL DISTRICTS ASSOCIATIONBOARD OF DIRECTORS – REGION 6, SEAT BUpon MOTION by Director Finnegan, seconded by Director Bakall, and carried (6-0), theBoard adopted RESOLUTION NO. 1806, supporting the candidacy of Arlene Schafer3

Minutes June 25, 2007(Costa Mesa Sanitary District) for re-election to the California Special Districts Association(CSDA) Board of Directors, representing Region 6, Seat B, by the following roll call vote:AYES:NOES: NoneABSENT:ABSTAIN:Directors Bakall, Clark, Dick, Finnegan, Hinman & RoyceDirector BarbreNoneThe Board then directed staff to submit said Resolution to CSDA by the July 30 deadline.ESTABLISHMENT OF LEGISLATIVE POSITIONSPresident Hinman advised that the Public Affairs & Legislation Committee recommended an“oppose unless amended” position on AB 70 (Jones re flood liability).Director Bakall commented that although the bill is not perfect and he would prefer someamendments to the bill, it is a step in the right direction, and he would recommend a“support if amended” position. Director Royce concurred, noting that he supports theconcept of the legislation, but many of its terms are weak.Upon MOTION by Director Royce, seconded by Director Clark, and carried (6-0), the Boardadopted a “support if amended” position on AB 70 (Jones re Flood Liability).CONSIDERATION OF SUPPORT FOR ACWA’S “THE TIME IS NOW” ACTIONPLAN FOR A COMPREHENSIVE WATER INFRASTRUCTURE PACKAGEGeneral Manager Hunt expressed enthusiasm for ACWA’s effort as it leads to a possibleDelta fix.Director Bakall supported the effort and concept, but expressed some concern relative tothe proposed funding ($4.5 billion for additional water storage, $1billion for Deltasustainability, and $450 million for conservation and restoration project), noting it may notbe enough, and may not be correctly apportioned. Directors Clark, Finnegan, Hinman, andRoyce concurred, with Mr. Royce noting that he was anticipating the figures would beflexible and he hoped that more funding would be allocated to conveyance.Mr. Hunt responded by noting that this was ACWA’s first step in its outreach program andthat the figures are flexible and would be worked out during the process.Director Clark inquired as to whether the “beneficiary pays” concept was part of the effort,with Mr. Hunt responding that a report on this concept would be made to an upcomingPublic Affairs & Legislation Committee.Mr. Peer Swan (Irvine Ranch Water District) commented that the initial State Water Projectinitiative authorized selling revenue bonds to pay for facilities, including any type of Deltaconveyance (and as such are already authorized and under the “user pays” concept). Henoted however, that storage has not been authorized. He believed it would be prudent toauthorize storage prior to fixing the Delta due to timing issues (the Delta would takeapproximately 10-15 years to complete and storage could be completed faster than this).4

Minutes June 25, 2007Upon MOTION by Director Royce, seconded by Director Bakall, and carried (6-0), theBoard adopted RESOLUTION NO. 1807, supporting a comprehensive water package thatincludes water storage, a comprehensive Delta solution and water use efficiency; andurging the Legislature to work with the Governor’s administration to pass the package thisyear and place it before the voters in 2008, by the following roll call vote:AYES:NOES: NoneABSENT:ABSTAIN:Directors Bakall, Clark, Dick, Finnegan, Hinman & RoyceDirector BarbreNoneDirector Finnegan requested that staff compile the Board’s concerns and submit them toACWA when sending the Resolution; the Board concurred.Director Bakall requested staff research Mr. Swan’s comments and report any findings toan upcoming Public Affairs & Legislation Committee meeting.INFORMATION CALENDARGENERAL MANAGER'S REPORT, JUNE 2007General Manager Hunt advised that the General Manager’s report was included in theBoard packet.Director Hinman inquired as to the status of MET’s lawsuit regarding the pumping on theState Water Project’s Banks’ pumping plant. Mr. Hunt noted that he received a letteroutlining the recent developments and he would distribute said letter to the Board.Ms. Hinman then referenced the SmarTimer Rebate Program, and requested staff addressMr. Dietmeier’s comments; it was noted that staff would contact Mr. Dietmeier and provideinformation.The Board received and filed the report as presented.MWDOC GENERAL INFORMATION ITEMSBOARD OF DIRECTORSIn addition to the regular MWDOC Board and Committee meetings attended by theDirectors, the following reports were made:Director Dick reported on his attendance at the MET Board and Committee meetings, aswell as the Orange County prayer breakfast, MET’s Solar Cup event, the WACO meeting,and the legislative committee meetings of both the cities of Garden Grove and Orange. Healso reported on attending the Orange County Business Council meeting and the LAFCOhearing.5

Minutes June 25, 2007Director Royce reported on attending Assemblyman Silva’s Town Hall Meeting, theSouthern California Water Committee Delta Vision workshop, the Garden Grove AARPmeeting (wherein Ron Wildermuth was the featured speaker), and the LAFCO hearing.Director Finnegan reported on attending an ACWA/JPIA workshop on worker’scompensation insurance in Sacramento, the ACWA/JPIA Executive Committee meeting,and the Mesa Consolidated Water District board meeting wherein a winner of thePoster/Slogan contest was honored.Director Clark reported on attending the Climate Change Workshop, the Urban WaterResearch Center dinner wherein Professor Cooper was introduced as the new Director ofthe Center. He also reported on attending the Southern California Water Committeemeeting and the LAFCO hearing.Director Hinman reported on attending the Urban Water Research Center dinner, theWEROC disaster drill, the Laguna Beach County Water District Board meeting, and a tourof the Irvine Desalter with Steve Malloy, Doug Reinhart, and Paul Jones. She also reportedon attending a School Program presentation at Robinson School in Trabuco Canyon, theSouth Coast Water District board meeting, the San Juan Basin Authority meeting atMoulton Niguel Water District, the LAFCO hearing, and the Orange County WaterAssociation luncheon featuring a presentation on emergency preparedness.ADJOURNMENTThere being no further business to come before the Board, President Hinman adjourned themeeting at 9:10 a.m.APPROVED_____________________________Susan Hinman, President_______________________________Maribeth Goldsby, Secretary6