Convened at 12:30 p.m. on Wednesday April 10, 2013
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1 MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SEMITROPIC, BUTTONWILLOW, POND-POSO, AND WILDLIFE IMPROVEMENT DISTRICTS OF SEMITROPIC WATER STORAGE DISTRICT Convened at 12:30 p.m. on Wednesday April 10, 2013 The regular meeting of the Board of Directors was called to order by President Wegis on Wednesday, April 10, 2013, at 12:30 p.m., at the offices of the District, 1101 Central Avenue, Wasco, California. Those in attendance included: Directors Present: Directors Absent: Others Present: Jeff Fabbri, Pat McCarthy, Phil Portwood, Todd Tracy, Dan Waterhouse and Fredrick Wegis; Courtney Howard; General Manager, Jason Gianquinto District Engineer, Paul Oshel; Staff Engineer, Craig Wallace; District Controller, Bobby Salinas; District Accountant, Judy Burns; District Exec. Secretary, Marsha Payne; District s Legal Counsel, Ernest Conant; District Consultants, Will Boschman and John Jones; District s Consulting Engineers, Bookman-Edmonston, GEI Consultants, Inc., Represented by Ron Eid; W.M. Lyles Representative, Rick Amigh; Sprague Real Estate Group Representative, Steve Gair; KCWA Director, Ted Page; A & T Ranches Representatives, John Campbell and Ken Tucker; Paramount Farms Representative, Andrew Edstrom; and, Sweetwater Tech Resources, Dundee Kelbel and Jack Rottman. President Wegis opened the meeting with the flag salute, then introduced and welcomed all guests. Dundee Kelbel and Jack Rottman of Sweetwater Tech Resources requested an opportunity to make a presentation to the Board on their proposal to clean up waste water as a potable water source for industrial use. The request was accepted for the May Agenda. ACTION ITEMS Approval of Agenda It was noted that one new item came to Staff s attention after posting the Agenda and will need action before the next meeting: Consider Authorization to Execute 5 th Amendment to JPA for 1
2 Kern Water Bank Authority Voluntary Cooperative Groundwater Monitoring Association for the CASGEM Program. Minutes On motion by Director Waterhouse, seconded by Director Tracy, the Minutes of the Regular Board Meeting on March 13, 2013 were approved as presented. Treasurer s Report The Treasurer s Report for March 2013 was presented for review and approval. On motion by Director Waterhouse, seconded by Director Portwood, the March 2013 Treasure s Reports for Semitropic Water Storage District and Semitropic Improvement District were approved for filing. Financial Reports District Controller, Bobby Salinas, presented the Cash Balance Report as of April 1, 2013 and the Projected Income and Expenses based on the 2013 Budget for Board review. Discussion followed. Accounts Payable The Cash Disbursement List for April 13, 2013 was presented for review and payment. Items discussed included expenses on construction of the Semitropic/Shafter-Wasco Interconnection and reimbursable expenses on equipment repairs. On motion by Director Portwood, seconded by Director Tracy, the Board authorized payment of the Accounts Payable as listed on the April 13, 2013 Disbursement List for Semitropic Water Storage District and Semitropic Improvement District. A copy of the Disbursement List presenting the payments that were approved is attached hereto as "Exhibit A." Re-organization of Board Officers/Committees Board President, Rick Wegis, stated that this was the time and place to reorganize the Board and asked if there were any nominations from the floor. There being none, and it being the consensus of the Board that other officers remain the same, the Board unanimously approved the slate of Board officers which are as follows: President Vice President Treasurer Fredrick A. Wegis Philip Portwood Dan Waterhouse 2
3 Secretary Assistant Secretary Todd Tracy Jason Gianquinto Consider Resolution Adopting Proposition 218 Assessment Ballot GEI Consulting representative, Ron Eid, presented the draft 2013 Engineer s Report in Support of Proposition 218 Assessment Ballot Proceeding. Mr. Eid addressed the purpose of the Election and why it is needed, including 1) to increase the GPSC to create an operating reserve to offset shortfalls in those years where revenue from the banking project is inadequate to cover the District s expenses, and 2) help cover the District s share of costs to participate in the Delta fix and/or other new supplies. The additional service charge represents maximum amounts which will not be collected unless needed. The proposed increase would mean that the General Administrative Service Charge would rise from.50 cents to $1.50 and the General Project Service would rise from $37.90 to $87.90, with a potential of future service charges up to $ A copy of the Engineer s Report will be available upon request at the District office. Manager Gianquinto reviewed a letter to the landowners, Notice of Hearing and ballot to vote which, if the Board approves, will be mailed in early May. Legal counsel, Ernest Conant, reviewed a combined Resolution for Buttonwillow and Pond- Poso Improvement Districts, a draft of which had previously been transmitted to the Board.. Provost and Pritchard has been retained to process the mailing and ballots. The Hearing was set for 10:00 a.m. on June 20 th for the Board to hear objections and/or comments. On motion by Director Waterhouse, seconded by Director McCarthy, the Board authorized the Proposition 218 Assessment Ballot in the form of Resolution No. BID and PPID 13-01: ADOPTING PROPOSITION 218 ASSESSMENT BALLOT PROCEDURES AND CALLING FOR AN ASSESSMENT BALLOT PROCEEDING ON A PROPOSED INCREASE IN THE DISTRICTS CHARGES PER THE DISTRICTS RULES AND REGULATIONS FOR THE GENERAL ADMINISTRATIVE SERVICE CHARGE AND FOR GENERAL PROJECT SERVICE CHARGE; ESTABLISHING PRELIMINARY RATES AND SETTING OF NOTICED HEARING (2013; COLLECTED ) Consider Resolution in Support of Filing Application with BOR for Bay-Delta Restoration Program: Ag Water Conservation and Efficiency Grant District Engineer, Paul Oshel, reported that the Bureau of Reclamation is currently soliciting proposals for grant funding assistance under their Bay-Delta Restoration Program. District staff has formulated a grant proposal for improvements referred to as the Reverse Flow Efficiency and Water Supply Reliability for Pond-Poso Canal. Discussion followed. On motion by Director Portwood, seconded by Director McCarthy, the Board authorized the General Manager to submit an application and execute an agreement with Reclamation on behalf of Semitropic for grant funding under its Bay-Delta Restoration Program in the form of Resolution No. SID 13-04: 3
4 IN SUPPORT OF FILING AN APPLICATION WITH THE BUREAU OF RECLAMATION FOR A GRANT UNDER THE BAY-DELTA RESTORATION PROGRAM: AGRICULTURAL WATER CONSERVATION AND EFFICIENCY GRANTS, AN ELEMENT OF THE INTERIM FEDERAL ACTION PLAN Consider Resolution Adopting Amended and Restated 401 (K) Retirement Plan Documents District Controller, Bobby Salinas, reported that the Pension Plan Administrators have drafted restated plan documents for the Semitropic Water Storage District 401 (K) Defined Contribution Plan and Trust to fully update the Plan and Trust documents for the amendments required to date, effective January 1, Discussion followed. On motion by Director Waterhouse, seconded by Director McCarthy, the Board adopted the Amended and Restated 401 (K) Retirement Plan Documents in the form of Resolution No : ADOPTING THE AMENDED AND RESTATED PLAN DOCUMENTS FOR THE SEMITROPIC WATER STORAGE DISTRICT 401 (K) DEFINED CONTRIBUTION PLAN AND TRUST ADOPTION AGREEMENT EFFECTIVE JANUARY 1, 2013 Consider Action: Alleged Tampering of District Facilities The Manager introduced John Campbell and Ken Tucker with A & T Ranches who presented an explanation to the Board of the events leading to the alleged tampering of their Turnouts S16 and S17. Mr. Campbell apologized on behalf of A & T Ranches for the incident and concluded by reporting that the employee who allegedly tampered with the meter is no longer with the company. Discussion followed with Manager Gianquinto explaining what happened with the meter and how to prevent it from happening in the future. This item will be further discussed during Closed Session. Mr. Campbell and Mr. Tucker left the meeting at 1:50 p.m. Consider Landowner Banking Contract (Setton Farms) The Manager stated that a request was made by Setton Farms to enter into a Standard Landowner Contract and Temporary Water Service Agreement with the District in order to receive District water. Discussion followed. On motion by Director McCarthy, seconded by Director Tracy, the Board approved entering into a Standard Landowner Contract and Temporary Water Service Agreement with Setton Farms, subject to final legal review. Consider Cost Sharing Agreement for Kern County Groundwater Management Plan Manager Gianquinto reported that District staff has been meeting with other public agencies 4
5 with the Kern sub-unit of the Tulare Lake Groundwater Basin to discuss potential activities to collectively better manage groundwater resources within the Kern Basin. The Parties wish to engage one or more consultants to evaluate and develop alternatives toward that end, which may include development of a collective Groundwater Management Plan or other alternatives. On motion by Director McCarthy, seconded by Director Tracy, the Board approved execution of an interim cost sharing agreement for initial funding of $10,000 for the District s share of cost related to the evaluation of potential activities to collectively better manage groundwater resources within the Kern Basin. Consider Authorization to Execute 5 th Amendment to JPA for Kern Water Bank Authority Voluntary Cooperative Groundwater Monitoring Association for the CASGEM Program District Consultant, Will Boschman, reported that Kern Water Bank Authority has signed on as a CASGEM monitoring entity which qualifies the District s eligibility to apply for grants from the State by providing information on monitoring of District wells. However, an Amendment is necessary for the JPA to fit the requirements for a voluntary cooperative groundwater monitoring association. On motion by Director Portwood, seconded by Director McCarthy, the Board authorized execution of a 5 th Amendment to JPA for Kern Water Bank Authority to include the Voluntary Cooperative Groundwater Monitoring Association for the CASGEM Program. Design/Build Team Construction Update W.M. Lyle s representative, Rick Amigh, reviewed the SWRU Phase 2 In-Lieu Service Area Infrastructure Improvements status through a presentation which included updates on the North/South Conveyance System and Distribution Systems X, Y and Z. Discussion followed. Consulting Engineer s Report Ron Eid from Bookman-Edmonston, GEI Consultants, Inc. presented the Consulting Engineers Report on Projects for Semitropic Water Storage District for work during March 2013, which was accepted for filing. Mr. Eid also reported on engineering activities related to implementation of various grants; preliminary plans for the proposed Madera Avenue Intertie; Prop. 218 Engineer s Report; and preparation of the proposal for a Bay-Delta Restoration Grant for the procurement and installation of reverse-flow pumping equipment at two canal check structures. Groundwater Storage Services, Inc. Will Boschman of Groundwater Storage Services, Inc. reported on activity during March Mr. Boschman attended various meetings including Kern Water Bank and the ACWA Groundwater Committee where there was considerable discussion on how fracking by the oil industry affects the groundwater supply. Mr. Boschman attended the ACWA Region 6 and 7 5
6 workshop in Visalia; served on the Nominating Committee for selecting Region 7 officers who will become Board members; provided assistance in acquiring easements for the West-East Pintail Slough; and provided assistance to the Manager as requested. Developing Water Resources, Inc. John Jones of Developing Water Resources, Inc. reported on activity related to Kern Water Bank s well development; cathodic testing of District pipelines; and a meeting with the County regarding some District wells that need to be destroyed. INFORMATIONAL AND UP-DATE ITEMS Manager Gianquinto s written report on District Activity During March dated April 5, 2013 was accepted for filing. In addition, the following items were presented: General Administrative Manager Gianquinto reported that on March 15 th the Central Valley Regional Water Quality Control Board released the Tulare Lake Basin Tentative General Order which started a 30-day review and comment period. The Board scheduled a workshop on April 25th to be held in Fresno to receive verbal comments relative to the General Order. The Manager stated that the District is continuing to work with GEI to refine the scope of the Ag Water Management Plan update. It was reported that Provost and Pritchard was issued Task Order to assist the District in the preparation of the election roll, ballot preparation, mailing, ballot receiving and counting process. Closed Session At 2:30 p.m. the District s legal counsel, Ernest Conant, stated that a closed session was needed pursuant to the following: a. Conference with legal counsel to discuss pending litigation (Gov t Code Section (a) 8 items 1) Rosedale-Rio Bravo Water Storage District v. Kern County Water Agency et al 2) Central Delta Water Agency et al v. California Department of Water Resources et al 3) Rosedale-Rio Bravo Water Storage District & Buena Vista Water Storage District v. California Department of Water Resources et al 4) Central Delta Water Agency et al v. Kern County Water Agency, et al 5) State Water Contractors v. Salazar (Delta Smelt BO) 6) Central Delta v. Semitropic Water Storage District (Delta Wetlands) 6
7 7) San Joaquin County Resources Conservation District, et al. v. California Regional Water Quality Control Board, Central Valley Region 8) North Kern Water Storage District, et al v. City of Bakersfield and North Kern Water Storage District, et al, v. Kern Delta Water District b. Conference with legal counsel to discuss Real Property Negotiations (Gov t Code Section ) Property: Delta Wetlands Project Negotiator: General Manager Negotiating Parties: Delta Wetlands Properties Under Negotiation: Price and Terms c. Conference with legal counsel to discuss Anticipated Litigation (Gov t Code Section ) All visitors left the meeting. Legal counsel reported on and discussed various legal issues with the Board. At 3:15 p.m. the Board reconvened to open session. President Wegis stated that several items were discussed including various legal issues and contracts. On motion by Director Portwood, seconded by Director Fabbri, the Board authorized staff to impose a $50,000 penalty on A & T Ranches for the alleged tampering of Turnouts S16 and S17 (estimated at $500/AF for 100 AF of water taken). The Board also requested that landowners be notified that tamper-proof cabling will be installed on meters owned or operated by the District in order to prevent future meter tampering losses. Adjournment At 3:20 p.m. the meeting was adjourned by President Wegis until Wednesday, May 14, 2013 at 8:30 a.m. to continue the business of the District. APPROVED: /s/ Fredrick A. Wegis, President /s/ Todd Tracy, Secretary 7
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