REGULAR BOARD MEETING

REGULAR BOARD MEETING JULY 26, 2016

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Agenda Item: D-1 Date: 07/26/16 THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF STOCKTON EAST WATER DISTRICT WAS HELD AT THE DISTRICT OFFICE 6767 EAST MAIN STREET, STOCKTON, CA ON TUESDAY, JULY 19, 2016 AT 12:00 NOON A. PLEDGE OF ALLEGIANCE AND ROLL CALL President Sanguinetti called the regular meeting to order at 12:30 p.m. Director Atkins led the Pledge of Allegiance. Present at roll call were Directors Atkins, Cortopassi, McGaughey, McGurk, Panizza, Sanguinetti and Watkins. Also present were Manager Moody, Assistant Manager Johnson, District Engineer Lee, Finance Director Naray, Administrative Assistant Lopez, Administrative Clerk Curtis, Consultant Barkett and Legal Counsel Harrigfeld. B. CONSENT CALENDAR (None) C. PUBLIC COMMENT (None) D. SCHEDULED PRESENTATIONS AND AGENDA ITEMS 1. Minutes 07/12/16 Regular Meeting A motion was moved and seconded to approve the July 12, 2016 Regular Meeting Minutes, as presented. Roll Call: Ayes: Atkins, Cortopassi, McGaughey, McGurk, Panizza, Sanguinetti, Watkins Nayes: None Abstain: None Absent: None 2. Warrants a. Fund 70 Administration Fund b. Fund 71 Water Supply Fund c. Fund 91 Vehicle Fund d. Fund 94 Municipal & Industrial Fund e. Payroll f. Summary g. Short Names/Acronym List h. SEWD Vehicles & Heavy Equipment DRAFT Director Cortopassi inquired on the expense on page 5, line item 18 for Rexel/Norcal Valley for tech support for Rockwell Hardware and Software in the amount of $8,179.37. Assistant Manager Johnson replied this is the programming software for the water treatment plant s Allen Bradley PLCs. Assistant Manager Johnson added this programming software is covered in the Technology Budget under Admin Fund 70; however, this expense is allocated as appropriate to M&I at the end of the Budget year. Director Cortopassi inquired on the expense on page 6, line item 24 for US Bank Corp. Payment Systems for content migration, domain renewal (GoDaddy) in the amount of $1,261.33. Board Meeting 07/19/16 1 Draft 1

Administrative Assistant Lopez replied GoDaddy hosts the server for the District s website and the expense is for the migration and upgrade of the server. A motion was moved and seconded to approve the July 19, 2016 Warrants, as presented. Roll Call: Ayes: Atkins, Cortopassi, McGaughey, McGurk, Panizza, Sanguinetti, Watkins Nayes: None Abstain: None Absent: None 3. Kristin Coon Consulting Special Contract Services Agreement for SAWS Water Education Program 08/01/16 07/31/17 Manager Moody provided the Board with the Kristin Coon Consulting Special Contract Services Agreement for the SAWS Water Education Program. Manager Moody reported the SAWS group has had an opportunity to review the Agreement and the group did not have any comments or revision to the Agreement as presented. A motion was moved and seconded to approve Kristin Coon Consulting Special Contract Services Agreement for SAWS Water Education Program 08/01/16 07/31/17. Roll Call: Ayes: Atkins, Cortopassi, McGaughey, McGurk, Panizza, Sanguinetti, Watkins Nayes: None Abstain: None Absent: None 4. Resolution No. 16-17-05 Approving the Disposal of Surplus Property Manager Moody provided the Board with Resolution No. 16-17-05 Approving the Disposal of Surplus Property. Director Cortopassi suggested tabling approval of Resolution No. 16-17-05 to allow adequate time to review and discuss the proposed surplus property. A motion was moved and seconded to table Resolution No. 16-17-05 Approving the Disposal of Surplus Property for further review and discussion. Roll Call: Ayes: Atkins, Cortopassi, McGaughey, McGurk, Panizza, Sanguinetti, Watkins Nayes: None Abstain: None Absent: None DRAFT 5. Stockton East Water District Engineering Department Activity Log Manager Moody provided the Board with an Engineering Department Activity Log. Assistant Manager Johnson reported the log provides information on the current workload assigned to the Engineering Department. Assistant Manager Johnson reported that District Engineer Lee oversees all of the listed projects, and delegates certain projects out to Engineering staff or consultants. Assistant Manager Johnson added Water Treatment Plant Manager Wunderlich and District Engineer Lee visited sites on the system to create prioritization criteria for what needs to be improved throughout the Water Supply system. Board Meeting 07/19/16 2 Draft 2

E. COMMITTEE REPORTS 1. Eastern San Joaquin County Groundwater Banking Authority Board & Coordinating Committee Meeting, 07/13/16 Director Panizza and District staff attended the July 13, 2016 Eastern San Joaquin County Groundwater Banking Authority Board Meeting. Director Panizza reported the primary discussion surrounded the County s Basin Boundary Modification due to City of Galt concerns, and extending the Term of Agreement A-14-1 with Carlon Consulting for the length of one year (for additional work in regards to the Technical Advisory Meetings) in an estimated amount of ~$200 - $1,000/monthly. Manager Moody reported both Central and South Delta are now planning on filing as their own Groundwater Sustainability Agencies (GSA) detouring from their initial intent to fall under the County s GSA. Manager Moody provided a handout to the Board from the SGMA Workgroup Meeting noting the maps provided on pages 7-9 illustrate the location of some of the local GSA s and areas not within the boundary of any GSA. The next meeting is scheduled for August 10, 2016. 2. Sustainable Groundwater Management Act Workgroup, 07/13/16 Manager Moody and District Engineer Lee attended the July 13, 2016 Sustainable Groundwater Management Act (SGMA) Work Group Meeting. District Engineer Lee reported there was discussion on the interest of more entities becoming a GSA. District Engineer Lee reported San Joaquin County is working on the JPA with Kevin O Brien as SGMA s legal consultant on the Attorney Drafting Committee. Director Panizza reported George Hartmann has been retained as Ombudsman to SGMA Workgroup. Mr. Hartmann will assist in drafting the Joint Powers Agreement (JPA). District Engineer Lee also reported the group is looking to bring in a consultant to complete No Regrets Data Analysis as well as obtain data to help satisfy the grant San Joaquin County (SJC) applied for under the Proposition 1 Restoration Grant Programs. Director Cortopassi inquired on the purpose of the Proposition 1 Restoration Grant Programs. District Engineer Lee replied the Grant is for Counties with distressed Groundwater Basins and SJC is eligible because it is defined as a Critically Over-drafted Basin. Director Cortopassi inquired how many other Counties have Critically Over-drafted Basins. Manager Moody replied there are ~127 Basins out of 515 that are considered medium or high priority Critically Over-Drafted. The next meeting is scheduled for August 10, 2016. DRAFT Manager Moody attended the July 13, 2016 Groundwater 101 Workshop. Manager Moody reported there were ~80 attendees. The workshop was applicable for those who knew very little about groundwater basins, however, a good workshop. 3. Stockton Area Water Suppliers Meeting, 07/18/16 Manager Moody and staff attended the July 18, 2016 Stockton Area Water Suppliers (SAWS) Meeting. Manager Moody commented as previously reported under Agenda Item D-3, the Group revised Kristin Coon Consulting Special Contract Services Agreement for the SAWS Water Education Program and the Group approved the Agreement as presented. Discussions primarily focused on California Water Service Company (Cal Water) removing all of their elevated tanks and building one partial in-ground tank. Cal Water wants to work with the District to find a constant flow rate in the future, to eliminate the use of wells except when necessary. Manager Board Meeting 07/19/16 3 Draft 3

Moody reported to the Group this endeavor will entail a lot of discussion and coordination between District Operations staff and Cal Water. Manager Moody reported there was a brief discussion on whether it makes sense for the Urban Contractors and the District to come up with an Agreement regarding a combined GSA instead of separating from each other as there was some interest in this. The next meeting is scheduled for August 22, 2016. F. REPORT OF GENERAL MANAGER 1. Water Supply Report as of 07/11/16 Assistant Manager Johnson reported there is 110,843 AF in storage at New Hogan Reservoir. Current releases are set at 187 cfs. There is 605,236 AF in storage at New Melones Reservoir. Current release at Goodwin Dam to Stanislaus River are set at 303 cfs and release to all water users are set at 1,248 cfs. The water treatment plant is currently processing 33 mgd. The City of Stockton s water treatment plant is currently processing 24 mgd of 100% Woodbridge Irrigation District water. Assistant Manager Johnson reported the District Wells are offline. Assistant Manager Johnson reported there are 26 irrigators on the New Hogan system and three (3) irrigators on the New Melones system. Manager Moody inquired with the Board if they have any input on the updated weekly water report form. Director Panizza inquired if Assistant Manager Johnson could provide the report as a handout with all current numbers to be able to follow while listening to the report. Director McGurk inquired if it would be reasonable to have the numbers reported out for how much water is being used (demand) and if staff is adjusting to meet demand (based on supply). Manager Moody replied staff adjusts on a daily basis dependent on weather, number of irrigators, etc. The only figure that would be fairly real time would be New Melones water that is being used at the Water Treatment Plant. Legal Counsel Harrigfeld inquired if there should be a category on the report below Release to All Water Users indicating the amounts for each water user receiving water supply from the Goodwin Dam via the Stanislaus River. Director Panizza suggested staff include a holder page for this agenda item; and, have a handout provided each Tuesday with a handout with updated figures for review. 2. Information Items: Manager Moody noted items: F2a-1, F2a-2, F2a-3, F2a-4, F2a-5, F2a-6, F2a-7, F2a-8, F2a-9, F2a- 10 and F2a-11. DRAFT 3. Report on General Manager Activities a. Groundwater 101 Workshop, 07/13/16 This item was discussed in conjunction with Agenda Item: E-2. b. Presentation to Local Engineers Club, 07/15/16 Manager Moody and Assistant Manager Johnson spoke at the July 15, 2016 Presentation to Local Engineers Club. Manager Moody reported there were ~10-12 attendees; discussion focused on future challenges facing the District. Board Meeting 07/19/16 4 Draft 4

G. DIRECTOR REPORTS (None) H. COMMUNICATIONS (None) I. AGENDA PLANNING/UPCOMING EVENTS 1. San Joaquin County Flood Control and Water Conservation District Advisory Water Commission Meeting, 1:00 p.m., 07/20/16. Director McGurk reported this meeting has been cancelled. The next meeting is scheduled for August 17, 2016. 2. Herum\Crabtree\Suntag Attorneys Stonecreek Village Summer Concert Reception, 6:00 p.m., 07/22/16 J. REPORT OF THE COUNSEL 1. Closed Session - Potential Litigation Government Code 54956.9 (c) two cases President Sanguinetti adjourned the meeting to closed session at 1:11 p.m. to discuss closed session agenda items. All District staff were excused from the closed session meeting, with the exception of Manager Moody, at 3:22 p.m. The regular meeting reconvened at 3:35 p.m., with no reportable action. J. ADJOURNMENT President Sanguinetti adjourned the meeting at 3:36 p.m. Respectfully submitted, Scot A. Moody Secretary of the Board tbc DRAFT Board Meeting 07/19/16 5 Draft 5

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7 Agenda Item: D-2 Date: 07/26/16

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9 Agenda Item: D-3 Date: 07/26/16

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15 Agenda Item: D-4 Date: 07/26/16

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Agenda Item: D-5 Date: 07/26/16 Proposition 53 Could Undermine Local Control and Water Projects ACWA Opposes "Cortopassi Initiative" on November Ballot Proposition 53, also known as the "Cortopassi Initiative," will appear on the Nov. 8 ballot. The measure, if approved by voters, would amend the California Constitution to require statewide voter approval of infrastructure projects financed through revenue bonds over $2 billion. Many legal experts believe the measure could impact the construction of vital state and local water projects, including water storage, recycling facilities and other projects. ACWA's Board of Directors voted in July 2015 to oppose the measure, citing its potential to undermine local control and restrict critical infrastructure projects in the future. ACWA Executive Director Timothy Quinn is one of three signatories to the ballot amendment opposing the measure. Others include representatives of the California Professional Firefighters Association and the Office of Emergency Services. Proponents of the measure and its sponsor, Delta landowner Dean Cortopassi, say Proposition 53 is aimed at giving voters a say before state government incurs large amounts of new debt. It is widely believed, however, that the measure targets a specific state project designed to improve water conveyance in the Delta. The measure is written in such a way that it could affect local projects pursued by joint authorities. ACWA has prepared a variety of materials to brief its members on Proposition 53 and assist them with educating key audiences. It is permissible for public agencies to take a position on a ballot measure and to provide balanced, educational materials to the public on the measure, its potential impacts and the agencies' position. All materials and guidelines on permissible activities are available at http://www.acwa.com/prop-53-toolkit. Suggested Actions to Take Have your Board of Directors adopt a resolution in opposition to Proposition 53. A sample resolution is included under "Sample Letter." Forward your board's resolution to ACWA by emailing it to Marie Meade at mariem@acwa.com. ACWA will then forward your resolution to the campaign opposing the measure so your agency can be added to the list of Proposition 53 opponents. Report your board's action in your agency's customer newsletter. Use balanced, educational materials on Proposition 53 to inform the community at public meetings or in community presentations when asked. Materials Available for Use ACWA has prepared a communications toolkit for use in public education on Proposition 53. These tools offer a balanced perspective on the initiative, outlining its content and possible impact as described by the impartial Legislative Analyst's Office and the state Department of Finance. 19

The toolkit includes: A fact sheet A sample resolution Talking points that can be customized with local examples Pro and con arguments about Proposition 53 Guidelines on permissible actions by local agencies The complete toolkit is available here. Member login is required. Other Resources Here is a link to a website offering opponents views on the measure www.savelocalcontrol.com. Here is a link to a website offering proponents views on the measure www.stopblankchecks.com. Questions Please feel free to contact ACWA Director of Communication Lisa Lien-Mager at (916) 441-4545 with any questions about the communications toolkit or Proposition 53. 20

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Agenda Item: G-1 Date: 07/26/16 HERUM\CRABTREE\SUNTAG ATTORNEYS Friday, July 22 th 6:00 9:00 p.m. The Offices at Stonecreek Village 5757 Pacific Avenue, Suite 222 (We are located above the shops. To enter the Business Offices go to the far Northwest corner by the fountain.) We invite you and a guest to join us for cocktails and hors d oeuvres at our office. Come and enjoy the Stonecreek Village Summer Concert Series featuring: Bump City (A R&B Funk Music Band) Please RSVP at 209-472-7700. Ask for Laura. 23

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