MINUTES

DEPARTMENT OF WATER & POWER
BOARD OF COMMISSIONERS
MINUTES OF A REGULAR MEETING
MARCH 22, 2005

A Regular Meeting of the Board of Commissioners of the Department of Water & Power, City of Big Bear Lake, was called to order at 8:04 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
Bill Speyers, Board Member
Barbara Willey, Board Member

BOARD MEMBERS EXCUSED: None

OTHERS PRESENT:

Jerome D. Gruber, General Manager
Scott Heule, Assistant General Manager
Diane Muir, Office Manager
Steve Wilson, Water Superintendent
Robyn Bratton, Secretary to the Board
Darrell Mulvihill, Mayor
Ken Dally, City Council Member
Bill Jahn, City Council Member
Bob Colven, CSD Board President
Rick Ollila, CSD Board Director
Steve Schindler, BBARWA General Manager
Kathy Campbell, Director, BBV Rec. & Parks District
Reese Troublefield, Recreation Superintendent,
      BBV Rec. & Parks District
Danielle Seckler, Bear Valley News
Michele Pinney, Big Bear Grizzly
Two Members of the Public

ITEM NO. 2 - PUBLIC FORUM

No one from the public wished to speak.

ITEM NO. 3 - CONSENT CALENDAR

3.1 Minutes of a Regular meeting dated February 22, 2005
3.2 Finance/Variance Reports & Authenticate Check Registers
3.3 General Manager's Report
3.4 Monthly Management Staff Reports
3.5 Notices of Completion for Well Drilling @ McAlister & Canvasback      Wells
3.6 Position for Administrative Manager & Resolution
3.7 Revised Water Demand Offset Program Resolution

Treasurer Conley requested that Item No. 3.3 be removed from the Consent Calendar.
Board Member Willey requested that Item no. 3.4 be removed from the Consent Calendar.

Motion made by Treasurer Conley, seconded by Vice Chairman Etter, and carried 5-0 to approve the Consent Calendar.

ITEM NO. 4 - ITEMS REMOVED FROM THE CONSENT CALENDAR

3.3 Treasurer Conley stated that the DWP needs to establish a nexus to identify what rehab is paying for, then the public will be able to see that part of the monies that are designated to pay for pipeline replacement. Fire flow should be the first priority.

3.4 Board Member Willey had a question regarding the ad hoc committee. As the DWP receives more commercial and subdivision projects, there are no guidelines on how to process and put some things together; therefore, she is in total agreement and supports the formation of an ad hoc committee to allow brainstorming and then discuss more formally at the April Board meeting. An Ad Hoc Committee of Treasurer Conley and Board Member Willey was appointed. The Committee should not need more than two meetings.

With regard to water audits in Bill La Haye's report, are they performed for people that call in and request them only? Does DWP approach the high-end water users to do an audit for them? GM Gruber responded yes. Office Manager Muir also stated that Bill sent out a high water use flyer to our customers and we got good results.

Treasurer Conley commented that the Childrens Water Festival flyer was amazing and asked about the Festival.

ITEM NO. 5 - BIG BEAR VALLEY RECREATION & PARKS POOL COMMITTEE PRESENTATION BY KATHY CAMPBELL, DIRECTOR

GM Gruber discussed the history of the Pool Action Committee and introduced Kathy Campbell. Kathy gave a detailed presentation on how and why the Committee was formed and brought everyone up-to-date on what is happening now. Two surveys were conducted in 1995 and 2003, and the results indicated that a community pool was the #1 requested need.

Treasurer Conley asked if there would be a therapy pool with handicap access. Kathy responded yes and it would have a "zero tech" (slope into the pool) access.

Board Member Willey asked if Vic Oberneider donated the monies for the therapy pool, would he have priority over those people who do not have prescription for therapy through Vic's company Matrix? Kathy responded that the therapy pool would be shared, but Vic's patients would have some kind of priority.

Chairman Herrick asked why Meadow Park was low on the list for a pool location. Kathy stated that after the earthquake, there was considerable damage to the old pool and building. When park maintenance went to clean the pool, they found it was undermined from the rise and fall of ground water levels and, therefore, the Park District felt this would not be a reliable site for the pool. The general consensus at this time is that the "Rebel Ridge" site is strategically located due to it being in the middle of the Valley.

With regard to the amount of water used for the pool, GM Gruber stated that the normal amount of water in a pool is approximately 150,000 gallons which equals $417. Customers sometimes put that much water onto their lawns. Also, 15 accounts fall under the "999 Account" which is a special account for the schools, parks, etc. at a different tier rate. Somewhere down the line, as needs require and the budget determines, the rate code may change.

ITEM NO. 6 - RESOLUTION SUPPORTING THE BBARWA RECLAIMED WATER RECHARGE PROJECT

AGM Heule discussed how part-time and full-time customers will impact the future needs for water.

AGM Heule introduced Tom Harder, from Geoscience. Tom gave a presentation on the BBARWA Reclaimed Water Recharge Program. It has been determined that CSD's Greenspot site seems to be the best place for recharge.

Board Member Willey asked why not both Greenspot and Van Dusen? GM Schindler stated that cost-wise, and at this time, only Greenspot is being considered. Maybe Van Dusen will be considered sometime down the line.

Michele Pinney, from the Grizzly, asked about "Midge Flys". GM Schindler responded that is something that has to be looked into and dealt with if they are an issue.

Motion made by Treasurer Conley, seconded by Vice Chairman Etter, and carried 4-0-1, with one abstention by Board Member Willey, to approve Resolution No. DWP 2005-XX Supporting the Reclaimed Water Recharge Project Proposed by BBARWA as presented without change.

Board Member Willey did not agree with item #3 in the Resolution. She feels this item would allow for uncapped spending and, therefore, needs to be reworded.

Chairman Herrick also felt this item should be reworded so as not to imply "open spending".

GM Gruber recommended that item #3 be stricken from the Resolution. Board Member Willey agreed but to continue to show support to BBARWA.

Treasurer Conley stated she agreed with the entire Resolution (item #3 included).

ITEM NO. 7 - AWARD CONTRACT FOR BIG BEAR BOULEVARD PIPELINE REPLACEMENT

AGM Gruber updated the Board and reported that the first round of bids for the Big Bear Boulevard Pipeline replacement were rejected due to cost issues. We went out to bid again and the lowest responsible bidder was Bear Valley Paving. Water Superintendent Wilson explained the ongoing problems on the Boulevard in the area near the Senior Center.

Treasurer Conley asked what the difference was between a directional cut vs. open cut. Water Superintendent Wilson stated that a directional cut is where a cut is made every 400 feet, then they bore through the soil and hook onto the pipe, and pull the pipe through the soil. An open cut is where they make an open trench cut and physically lay pipe into the trench, backfill, and pave.

Treasurer Conley asked if penalties would be imposed if the contractor did not finish the project on schedule. Staff stated that penalties would be imposed.

The other concern was that if the contractor did not meet the schedule, would CalTrans go ahead and pave anyway? Staff stated this would not happen and many times CalTrans has delays too. CalTrans would comply with our time frame.

Motion made by Board Member Willey, seconded by Treasurer Conley, and carried 5-0 to (1) award the Big Bear Boulevard water pipeline replacement contract to the lowest responsible bidder, Bear Valley Paving, for a contract price of $750,000 and (2) fund the project with $350,000 from the "mains & services" portion of the Rehabilitation Program (A/C #510-5292-3984), $350,000 from the "well improvements" portion of the Capital Improvement Program (A/C #510-5291-3983), and the balance from the Fund Balance.

ITEM NO. 8 - CONSTRUCTION COST INDEX ADJUSTMENT FOR CONNECTION, REHAB, & SUPPLEMENTAL WATER SOURCE FEES

GM Gruber reviewed his report with staff and there was general discussion with the Board. GM Gruber stated that, after a meeting with the DWP's Engineer, So & Associates, it was decided that a cost index adjustment needs to be imposed. He also explained that due to increased costs annually, the cost index adjustment is important.

ITEM NO. 9 - CITY REPORTS (nothing to report)

ITEM NO. 10 - BOARD MEMBER REPORTS

Board Member Willey thanked the CSD Board and staff for the educational tour of the 29 Palms fluoride treatment plant. The 29 Palms staff was patient and informative. Board Member Willey felt very encouraged at the future potential of having a fluoride treatment plant in Big Bear City.

Treasurer Conley referred back to the Consent Calendar and congratulated Diane Muir on being promoted to Administrative Manager. She also stated that it is a pleasure working with Diane. Also thanked the CSD and Bob Colven for the fluoride treatment plant field trip.

Chairman Herrick adjourned the meeting for a break at 10:15 a.m.

Chairman Herrick reconvened the meeting at 10:28 a.m.

ITEM NO. 11 - CLOSED SESSION

1. 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 #307-212-15 (Southern California Water Company - Cienega)
   Negotiating Parties: General Manager & Assistant General Manager
2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION SIGNIFICANT EXPOSURE TO LITIGATION
   Pursuant to Subdivision (b) of Section 54956.9 of Government Code
   Number of Cases (1) Objections to improvements required for APN #309-221-06.

Into Closed Session at 10:28 a.m.

ITEM NO. 12 - OPEN SESSION

Into Open Session at 10:50 a.m. - No reportable action taken.

ITEM NO. 13 - ADJOURN

There being no further action to come before the Board, Treasurer Conley adjourned the meeting at ll:25 a.m.

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Robyn Bratton, Secretary to the Board

Approved at meeting dated: April 26, 2005

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