MINUTES

DEPARTMENT OF WATER & POWER
BOARD OF COMMISSIONERS
MINUTES FOR A REGULAR BOARD MEETING
NOVEMBER 23, 2004

A Regular meeting of the Board of Commissioners of the Department of Water & Power, City of Big Bear Lake, was called to order at 8:03 a.m., by Chairman Herrick, at the DWP Board Room, 41972 Garstin Drive, Big Bear Lake, California.

FLAG SALUTE: Led by Vice Chairman Etter

BOARD MEMBERS PRESENT:

Rick Herrick, Chairman
Eddie Etter, Vice Chairman
Susan Conley, Treasurer
Barbara Willey, Board Member

BOARD MEMBERS EXCUSED: Bill Speyers, Board Member

OTHERS PRESENT:

Jerome D. Gruber, General Manager
Scott Heule, Assistant General Manager
Diane Muir, Office Manager
Steve Wilson, Water Superintendent
Bill La Haye, Water Conservation Specialist
Robyn Bratton, Secretary to the Board
Darrell Mulvihill, Mayor ProTem
Neal Hertzmann, City Council Member
Ken Dally, City Council Member
Ron Seymour, Big Bear News
Chuck Lindeen, Chuck's Home Inspections
Two members of the Public

ITEM NO. 2 - PUBLIC FORUM

No one from the public wished to speak.

ITEM NO. 3 - CONSENT CALENDAR

...Motion made by Vice Chairman Etter, seconded by Board Member Willey, and carried 4-0 to approve the Consent Calendar.

ITEM NO. 4 - ITEMS REMOVED FROM THE CONSENT CALENDAR (None)

ITEM NO. 6 - TRT YEAR-END REPORT

Assistant General Manager (AGM) Heule provided handouts of his Powerpoint presentation outlining a recap of the summer's water production from our wells and the demands on the water system for part-time vs full-time customers.

Chairman Herrick asked what the projected water use in acre-feet will be for 2004 compared to 2003. AGM Heule responded that it will probably total 2,500 acre-feet in the Big 4 due to the water conservation efforts.

Treasurer Conley thanked staff for the information. She asked if the water budget figures were based on 2003 figures minus 15 percent. AGM Heule responded that the budget figure was 10 percent less than in 2003 in the Big 4, and more than 10 percent in Lake Williams.

Treasurer Conley stated that occupancy figures are okay now with 70/30 percent; however, another 10 percent shift will put us over our perennial yield. AGM responded that the short-term looks worse than it is because actual use is less than 152 gpm per EDU; however, even without any new connections, if occupancy becomes more full-time, a supplemental water supply will be needed.

Treasurer Conley said that at the CSD's last Board meeting, Mr. Ollila stated what the DWP is portraying as a water shortage is not true, meaningless, etc. How accurate is our information? AGM Heule explained that staff has taken a look at the Village Subunit and used the same methodology in the overall water availability of the Valley. DWP water, is very complex in its geological makeup west of Division, and therefore, staff cannot make a broad generalization.

In response to Mr. Ollila's comments, AGM Heule stated that both Lake Williams and the Village Subunit have long-term water supply problems, and Mr. Ollila's interpretations are wrong.

Chairman Herrick stated that he sees water conservation will have an impact on a long-term basis. AGM Heule stated it will take everyone's cooperation to make this happen.

ITEM NO. 5 - CONSIDER ADOPTION OF A MITIGATED DECLARATION & ADOPTION OF A MITIGATION MONITORING & REPORTING PLAN, BY THE DWP, FOR THE LAKE WILLIAMS INTER- CONNECTION WATER PIPELINE.

AGM Heule discussed the need for the adoption of the Mitigated Negative Declaration and requested approval from the Board. Tom Dodson will compile the appropriate paperwork and send to General Manager (GM) Gruber within the next week.

Chairman Herrick asked if it was appropriate to approve anything if the deadline for the expiration date comes prior to funding? AGM Heule stated there may be a time limit, but he didn't think that a time/date was an issue. He said he would talk to Tom Dodson, but suggested that approval not be postponed.

Chairman Herrick asked if there were severe mitigations and AGM Heule stated there were not, but before any equipment goes onto the property, a survey will be implemented to check for nesting birds. There is an endangered plant in question that may need to be relocated outside the construction zone.

Chairman Herrick stated he thought there might be a horse trail. AGM Heule responded that there was a 100 ft. CalTrans Right-of-Way but not a legally defined trail of any kind.

Treasurer Conley asked if the 2006 timeline for completion of the interconnection would be met, and AGM Heule said the Board committed to have the pipeline complete in 2007.

Treasurer Conley asked about birds nests in trees that would be removed. Assistant General Manager Heule stated that no trees would be removed with a bird in the nest. Any tree(s) with a bird's nest would be removed when the nest is empty.

...Motion made by Vice Chairman Etter, seconded by Treasurer Conley, and carried 4-0 to approve the Mitigation Monitoring and Reporting Plan; adopt the Mitigated Negative Declaration; and direct the general manager to file the Notice of Determination in accordance with CEQA and the Certification of Fee Exemption.

ITEM NO. 7 - PROPOSED WATER DEMAND OFFSET - DRAFT RESOLUTION

At the October Board meeting, GM Gruber discussed that there was some confusion as to how calculations were derived at for the demand offset. GM Gruber introduced Mark Van Dam, our in-house, two-day a week Engineer from CDM. Mr. Van Dam had prepared a report to better explain how the Water Demand Offset Program works. Also presented with the staff report was a draft resolution that will go before the City Council in January for approval.

AGM Heule gave a Powerpoint presentation on the plan that showed how the Water Demand Offset Fee was determined. The presentation also showed how the required offset would be computed and how credits for retrofitting would be determined.

Chairman Etter asked if the Program is based on EDUs and if the property goes over one EDU, would the customer be charged more? AGM Heule stated it would be calculated the same way as the connection fees.

Treasurer Conley asked if the $1,492 Administrative Fee would be charged per EDU or per project? AGM Heule stated per EDU.

Treasurer Conley asked if the customer doesn't need to be retrofitted and there is only turf, would there still be an Administrative Fee? AGM Heule stated no, the customer would have to pay for it.

Chairman Herrick adjourned the meeting for a break at 9:24 a.m.

Chairman Herrick reconvened the meeting at 9:37 a.m.

ITEM NO. 8 - PROPOSED POLICY FOR ESTABLISHING RESERVE FUND BALANCE

GM Gruber reviewed the Master Plan and, at the October meeting, stated the financial plan portion would be addressed at a later time; however, in light of a three-day seminar GM Heule attended, he made some suggestions which spurred GM Gruber to establish a Reserve Fund Balance Report, and presented a spreadsheet to the Board. GM Gruber felt this would better describe what areas reserve funds would be kept in, the Board concurred with staff on this policy.

ITEM NO. 9 - - CONTRACTURAL AGREEMENT & RESOLUTION NO. DWP-2004-11 OF CONDITIONAL SERVICE FOR NEW DWP CUSTOMERS (FOR PRIVATE WELLS)

GM Gruber gave a brief history regarding the private well issue and future wells. Chairman Herrick, GM Gruber, and AGM Heule went to Sacramento to meet with Stuart Somach, the DWP's water attorney, to discuss what the DWP can do to better control the drilling of private wells. A decision was made to draft a contractual agreement and resolution giving the customer a choice as to whether they want to hook up to the water system or drill a well.

Treasurer Conley felt uneasy about the contract in that she perceives it as confrontational. She stated that the resolution did not seem as specific as the contractual agreement. The resolution stated that a water shortage emergency "may" exist and the answer is stated more clearly in the Agreement. Treasurer Conley wanted like wording put into the resolution as well.

GM Gruber said he would bring back to Stuart Somach with the Board's input and ask Stuart for his opinions. GM Gruber stated that Item #4 of the contract was added by AGM Heule and him.

It was stated that #4 needs clarification of intent and what happens when we are not in a drought? Also, condemnation action could be taken for the good of the Valley; however, in cases of water rights, you can't take away property without some kind of compensation.

GM Gruber said he would bring back to Stuart Somach with the Board's input and ask Stuart for his opinions. GM Gruber stated that Item #4 of the contract was added by AGM Heule and him.

It was stated that #4 needs clarification of intent and what happens when we are not in a drought? Also, condemnation action could be taken for the good of the Valley; however, in cases of water rights, you can't take away property without some kind of compensation.

Vice Chairman Etter had a problem with a customer who sells a property that has an existing well. How would the resolution affect the new customer?

GM Gruber stated he would address the legal issues and bring back to the Board.

Council Member Hertzmann asked if a meter was pulled from someone's service and moved somewhere else, would part of the connection fee be included in the price rather than being charged for a hookup again and again.

ITEM NO. 10 - CITY REPORTS

Council Member Hertzmann reported:

1. The Slope Ordinance was approved.
2. The PAC User Guide was approved.
3. The Big Box Ordinance was adopted.
4. The ABC Ordinance for food handling was adopted.

ITEM NO. 11 - BOARD REPORTS

Treasurer Conley thanked Council Member Hertzmann for his reports from the City Council meetings and thanks for the representation of the City at the DWP Board meetings.

Chairman Herrick adjourned the meeting for a break at 10:25 a.m.

Chairman Herrick reconvened the meeting at 10:39 a.m.

ITEM NO. 14 - CLOSED SESSION

CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to Section 54956.8 of Government Code

(a) Property:APN #304-126-04 (West)
Negotiating Parties: General Manager & Assistant General Manager

(b) Property: APN #306-096-18 (39121 Robin Rd. - Loftis/Christianson)
Negotiating Parties: General Manager & Assistant General Manager

(c) Property: APN #307-045-26 (Canvasback - Strategier)
Negotiating Parties: General Manager & Assistant General Manager

Into Closed Session at 10:39 a.m.

Into Open Session at 11:14 a.m. - No reportable action taken

ITEM NO. 15 - ADJOURN

There being no further business to come before the Board, Chairman Herrick adjourned the meeting at 11:14 a.m.

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Robyn Bratton
Secretary to the Board

Approved at meeting dated:

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