Approved August 10, 2004

EAST VALLEY WATER DISTRICT July 27, 2004

REGULAR BOARD MEETING

MINUTES

The meeting was called to order at 2:00 p.m. by President Wilson. Director Sturgeon led the flag salute.

PRESENT: Directors: Negrete, Goodin, Sturgeon, Wilson,

ABSENT: Lightfoot

STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Brian Tompkins, Chief Financial Officer; Justine Hendricksen, Administrative Assistant

LEGAL COUNSEL: Steve Kennedy

GUEST(s): Chuck Bryant (BWT), M.B. Cisneros, Anibal Blandon (CDM), Gary Sturdivan (EVWD), Charles Roberts (Highland Community News), Larry Rowe (BWT)

APPROVAL OF AGENDA

M/S/C (Negrete-Goodin) that the July 27, 2004 Agenda be approved as submitted.

PUBLIC PARTICIPATION

President Wilson declared the public participation section of the meeting open at 2:02 p.m.

Ms. Cisneros addressed the Board regarding the District’s move to the interim facility; that she would be inconvenienced if she was required to pay at the new facility; that she would endure additional expenses due to transportation costs, money orders, stamps and envelopes; that we should contract with other agencies and offer alternative payment centers.

Brian Tompkins informed the Board that he was currently reviewing this issue and would update the Board on his finding at the next regularly scheduled Board meeting.

The General Manager stated there are liability issues that need to be addressed regarding alternative payment stations and that this issue should be added to the next agenda.

President Wilson indicated that the drop box would be available for a limited time after the interim move.

APPROVAL OF JULY 13, 2004 BOARD MEETING MINUTES.

M/S/C (Sturgeon-Goodin) that the July 13, 2004 Board Meeting Minutes be approved as submitted.

APPROVAL OF JULY 20,2004 SPECIAL MEETING MINUTES.

M/S/C (Sturgeon-Goodin) that the July 20, 2004 Special Meeting Minutes be approved as submitted.

RESOLUTION 2004.19 – NOTICE OF COMPLETION FOR REHABILITATION OF WELL 146 LOCATED AT 7938 CHURCH STREET IN THE CITY OF HIGHLAND was presented to the Board for approval.

M/S/C (Sturgeon-Goodin) that Resolution 2004.19 be approved.

FINANCIAL STATEMENTS FOR PERIOD ENDED JUNE 30, 2004 were presented to the Board for review.

M/S/C (Sturgeon-Goodin) that the Financial Statements for period ended June 30, 2004 be accepted.

APPROVAL OF LIENS FOR DELINQUENT WATER AND SEWER ACCOUNTS.

M/S/C (Sturgeon-Goodin) that the liens for delinquent water and sewer accounts be approved for processing as submitted.

DISBURSEMENTS

M/S/C (Sturgeon-Goodin) that General Fund Disbursements #198030 through 198198 distributed during the period of July 9, 2004 through July 21, 2004 in the amount of $533,561.71 and Payroll Fund Disbursements for the period ended July 9, 2004 in the amount of $93,585.04 totaling $627,146.75 be approved.

DISCUSSION AND POSSIBLE ACTION REGARDING A REQUEST TO PRESENT A LATE CLAIM FOR DAMAGES AT 28673 LIVE OAK ROAD, HIGHLAND, CA., FROM RONALD LYONS.

M/S/C (Goodin-Negrete) that Board accepts the application for late claim relief from Ronald Lyons, but to deny the claim for damages and refer the matter to the District’s Legal Counsel and Insurance Carrier Caldwell & Moreland.

RADON RULE / PERCHLORATE RULE UPDATE

The General Manager stated that there was nothing new to report on the Radon rule; that there was current information on an Amendment that was placed into the Senate Bill for Perchlorate issues in the Rialto Basin; that there was a request for funds for Perchlorate Remediation for East Valley Water District.

REVIEW AND POSSIBLE ACTION REGARDING A PROPOSAL TO COMPLETE DESIGN OF THE PERCHLORATE SYSTEM PIPELINES FROM CDM.

The General Manager updated the Board on the design proposal for the Perchlorate pipeline prepared by CDM; that CDM is working on the preliminary designs; that the District is looking to move forward on the project.

The General Manager recommended approval of the proposal prepared by CDM.

Director Goodin stated that he was concerned that construction costs could increase.

Anibal Blandon (CDM) stated that construction costs were taken into consideration and reflected in the proposal.

M/S/C (Sturgeon-Negrete) that the Proposal to complete design of the Perchlorate system pipelines from CDM be approved.

DISTRICT HEADQUARTERS SITE UPDATE.

The General Manager updated the Board on the interim facilities; that the District is moving August 21-22; that the design on the permanent District Headquarters is underway; and that the land issues are moving forward.

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PUBLIC HEARING FOR THE PURPOSE OF ACCEPTING AND RESPONDING TO PUBLIC COMMENT REGARDING THE DISTRICT’S REPORT ON PUBLIC HEALTH GOALS (PHG’S & MCLG’S).

President Wilson declared the Public Hearing Section of the Board Meeting open at 2:55 p.m.

The General Manager stated that there had been no written or verbal comments received during the comment period.

There being no further written or verbal comments, President Wilson recommended the Public Hearing Section of the Board Meeting be closed at 2:55 p.m.

DISCUSSION AND POSSIBLE ACTION REGARDING THE DISTRICT’S REPORT ON PUBLIC HEALTH GOALS (PHG’S & MCLG’S).

The General Manager recommended that the Report on Public Health Goals (PHG’s & MCLG’s) be approved.

M/S/C (Negrete-Goodin) that the District’s Report on Public Health Goals (PHG’s & MCLG’s) be approved as submitted.

DISCUSSION AND POSSIBLE ACTION REGARDING A DEMONSTRATION PROJECT PROPOSAL FROM BASIN WATER TECHNOLOGY GROUP, INC., FOR THE REMOVAL OF PERCHLORATE AND TREATMENT OF NITRATES PRESENT IN THE WATER PRODUCED AT WELL 27.

The General Manager updated the Board regarding the Proposal Demonstration Project from Basin Water; that there would be two separate treatment units installed; that this would benefit the District and provide an additional source of water.

The General Manager recommends we adopt the agreement from Basin Water.

Director Goodin questioned if research and investigations have been completed, and what types of success rates have been achieved.

Director Negrete commented on the time frame it would take for each unit to be operational.

Director Sturgeon commented on Basin Waters’ liability, and suggested that an independent company review the operating agreement.

M/S/C (Sturgeon-Negrete) that the Demonstration Project proposal from Basin Water Technology Group, Inc., for the removal of Perchlorate and Treatment of Nitrates present in the water produced at Well 27 be approved.

DISCUSSION AND POSSIBLE ACTION REGARDING A CLAIM FOR DAMAGES AT 1683 PUMALO ST. APT. #35, SAN BERNARDINO, CA., FROM FAUZIA RARA was presented to the Board.

M/S/C (Sturgeon-Negrete) that the Claim for Damages by Fauzia Rara be denied and referred to District’s Legal Counsel and Insurance Agency Caldwell & Moreland.

DISCUSSION AND POSSIBLE ACTION REGARDING A CLAIM FOR DAMAGES AT 1683 PUMALO ST. APT. #29, SAN BERNARDINO, CA., FROM ELLY RIOERA was presented to the Board.

M/S/C (Sturgeon-Negrete) that the Claim for Damages by Elly Rioera be denied and referred to District’s Legal Counsel and Insurance Agency Caldwell & Moreland.

DISCUSSION AND POSSIBLE ACTION REGARDING A CLAIM FOR DAMAGES AT 1683 PUMALO ST. APT. #23, SAN BERNARDINO, CA., FROM PUSHPENDRA P. SHUKLA was presented to the Board.

M/S/C (Sturgeon-Negrete) that the Claim for Damages by Pushpendra P. Shukla be denied and referred to District’s Legal Counsel and Insurance Agency Caldwell & Moreland.

DISCUSSION AND POSSIBLE ACTION REGARDING A CLAIM FOR DAMAGES AT 1683 PUMALO ST. APT. #37, SAN BERNARDINO, CA., FROM DEBORAH J. MOORE was presented to the Board.

M/S/C (Sturgeon-Negrete) that the Claim for Damages by Deborah J. Moore be denied and referred to District’s Legal Counsel and Insurance Agency Caldwell & Moreland.

DISCUSSION AND POSSIBLE ACTION REGARDING A CLAIM FOR DAMAGES AT 1683 PUMALO ST. APT. #15 & 16, SAN BERNARDINO, CA., FROM GLENORA GARDEN APARTMENTS was presented to the Board.

M/S/C (Sturgeon-Negrete) that the Claim for Damages by Glenora Garden Apartments be denied and referred to District’s Legal Counsel and Insurance Agency Caldwell & Moreland.

RELEASES OF LIEN FOR DELINQUENT WATER AND SEWER ACCOUNTS.

List of liens released on July 27, 2004 was reviewed. Information only.

INVESTMENT REPORT FOR QUARTER ENDED JUNE 30, 2004.

The Investment Report for Quarter ended June 30, 2004 was reviewed. Information only.

WATER QUALITY CONFERENCE BUDGET UPDATE.

The General Manager updated the Board on the Water Quality Conference; that the District has sent a letter of invitation for Senator Diane Feinstein to speak at the Conference; that the final agenda for the Conference is being prepared. Information Only.

President Wilson requested a copy of the draft agenda for the Conference. Information Only.

HAZARD MITIGATION UPDATE

Gary Sturdivan updated the Board on the progress of the Hazard Mitigation Plan; that the District’s plants and facilities have been ranked based on damage probability due to fire, flood and earthquakes; that he is currently working and moving forward on the earthquake portion of the plan. Information Only.

GENERAL MANAGER’S REPORT

The General Manager reported on the District’s operations to date; that the Arroyo Verde project is ready for bid; that San Bernardino Valley Municipal Water is diligently working on the 78” pipeline on Baseline. Information only.

ORAL COMMENTS FROM BOARD OF DIRECTORS

President Wilson commented on his trip to Washington D.C.; that the meeting with Senator Diane Feinstein regarding solutions for Perchlorate Treatment went well. Information only.

Director Sturgeon stated that the Junior University’s Production of the Wizard of Oz was very enjoyable. Information Only.

There being no further verbal or written comments from the Directors, this section of the meeting was closed.

THE GROUNDWATER RESOURCES ASSOCIATION OF CALIFORNIA CONFERENCE “PERCHLORATE IN CALIFORNIA’S GROUNDWATER”, GLENDALE HILTON HOTEL, GLENDALE, CA., AUGUST 3-4, 2004.

THE 11TH ANNUAL CALIFORNIA URBAN WATER CONFERENCE, HYATT REGENCY ISLANDIA HOTEL, MISSION BAY, SAN DIEGO, CA., AUGUST 25-27, 2004.

A FIVE-MINUTE BREAK WAS CALLED AT 3:17 P.M.

CLOSED SESSION

The Board entered into Closed Session at 3:22 p.m. as provided for in the California Open Meeting Law, Government Code Section 54956.9(c), to discuss the item 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 session at 3:50 p.m. The items listed on the Agenda were discussed in closed session with no reportable action being taken except:

With regards to Item #29 that by a 4-0 vote (Director Lightfoot Absent) that the Board of Directors authorized the General Manager to execute a QUITCLAIM DEED between East Valley Water District and the State of California.

With regards to Item #30 no action taken.

ADJOURN

The meeting was adjourned at 3:50 p.m. until the next regularly scheduled Board Meeting on August 10, 2004.

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George E. Wilson, President

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Robert E. Martin, Secretary