February 25, 1998

February 25, 1998

7:30 p.m.

The Board of Directors of the San Benito County Water District convened in regular session. All members of the Board were present together with District Manager, John S. Gregg, Administrative Services Officer, Denise R. Thome, District Counsel, David E. Pipal and members of the general public.

1. PLEDGE OF ALLEGIANCE:

President Swanson asked all to stand and recite the Pledge of Allegiance to the flag.

2. APPROVAL OF THE AGENDA:

Upon motion duly made, seconded and carried, approved the agenda as presented.

3. APPROVAL OF MINUTES FOR JANUARY 28, 1998 AND FEBRUARY 2, 1998:

Upon motion duly made, seconded and carried, approved the minutes for January 28, 1998 and February 2, 1998 as presented.

Director Buzzetta questioned his role on the Water Treatment Plant Committee and felt it was confusing in the minutes as to which committee the assignments were granted.

President Swanson clarified that Director Buzzetta was on the Water Treatment Plant Committee and Directors Perry and Gonzales were on the Groundwater Committee.

4. PUBLIC INPUT:

Jill LaCorte, 923 Los Viboras Road, indicated that she understood that the District would be reevaluating the percolation system. She requested that they not percolate Los Viboras Creek. She explained that they needed it to dry out so that they could do some major repairs. She questioned who owned the Pacheco Pass Bridge.

Manager Gregg stated that there was no percolation plan set for this year yet. He added that because of high groundwater in north county there would be limited percolation. He added that the break in the Hollister Conduit would also be a reason for limited percolation. He added that they would accommodate landowners.

Ms. LaCorte stated that the Pacheco Pass Water District Canal/Dam was in need of repair and contributed to some of their damage. She indicated that the low water crossing was not meant to be wet all year.

5) ALLOWANCE OF CLAIMS:

Upon motion duly made, seconded and carried, approved the claims as presented.

Director Rupert asked that the print on the claims listing be darker as it was difficult to read.

6) SAN FELIPE CUSTOMER REQUEST FOR REFUND OF DEPOSITS AND

REDUCTION IN WATER ALLOCATIONS (Bruce Mitzel):

Bruce Mitzel stated that he had farmed all his life in North Dakota and that he had started farming here in July. He explained that he had never had federal project water before and wanted to turn it on once or twice before deciding on his allotment. He further explained that he watered in July and weeds started to grow so he decided to clean it up and wait for hay time in November. He stated that he wrote a letter and gave it to Lisa Kemmer (Water Programmer II) on August 13,1997 and that he had an August 15, 1997 deadline for the contract. He stated that he was supposed to be on the August 1997 board agenda, which it did not make, and was contacted by the Water Department who stated that his matter would be on the September 1997 agenda. He stated that he wrote a letter again, in Ms. Kemmer’s office, and it was lost. He stated that he was unable to make the October board meeting as he had World Series tickets and the night of the November board meeting he had the flu. He continued by stating that in December he went home to North Dakota for 10 days during which time the December meeting occurred. Mr. Mitzel indicated that he put down a $2,000 deposit and used one acre foot. He stated that the matter was now in the Board’s hands and that there was a $1,360 credit on his deposit.

Manager Gregg stated that the bottom line was whether there was unused water or not.

Mr. Mitzel stated that he understood the District policy to be that he had until August 15, 1998 to allocate it.

Manager Gregg stated that there was come confusion and difference with respect to the facts. He indicated that the contract was signed on August 5, 1997 and was not complete until August 22, 1997 when the supporting forms and the check were delivered. He stated that it was his understanding, after discussing it with the Water Department staff, that great care was taken to explain to Mr. Mitzel about taking a large amount of water late in the season, and he chose to do that. Manager Gregg indicated that there had been other situations and the Board had taken a pretty firm position on unused water. He added that Mr. Mitzel was new to the area.

Mr. Mitzel stated that the check was there on August 1, 1997 and that none of his letters made it to the agenda.

Manager Gregg stated that the paperwork showed that Mr. Mitzel’s land registration was not complete until August 22, 1997 and that his check was not posted until August 26, 1997. He added that the same records are kept for all customers and that a genuine effort was made to advise Mr. Mitzel of the rules and unused water policy.

Director Gonzales asked the last date to return the water without penalty.

Mr. Mitzel stated August 15, 1998.

Barbara Mirrione (Water Programmer III) stated that you don’t return it and once you sign the contract it is sold. She added that Mr. Mitzel’s money was in and he had stated there was no problem with using the water.

Director Perry stated that they had the problem 5 years ago and at that time they changed to a three tier level to alleviate. He added that at that time they made concessions and stated that they would not do it again. He indicated that there were many others that had unused water and paid for it.

Mr. Mitzel indicated that Ms. Mirrione had said she would work with him. He added that he gave a letter to Ms. Kemmer on August 13, 1997 and it never made it to the agenda, which was a clerical error. He stated that it was not his fault and that it was Ms. Kemmer’s fault. He indicated that Ms. Mirrione gave him an August 15, 1997 deadline and he did not think she would run the contract through before then. He added that Ms. Mirrione recommended 1 acre foot per acre and start with that.

Director Gonzales asked where the water was that Mr. Mitzel purchased.

Manager Gregg stated San Luis Reservoir.

Director Gonzales suggested to Mr. Mitzel that he request the water and see if the District can perform and put it in his valve.

7) REPORT ON DAMAGE TO HOLLISTER CONDUIT AND WATER SERVICE FOR

1998:

Manager Gregg made a presentation including the display of transparencies. He indicated that they had lost about 300 feet of pipe.

Director Gonzales asked if they could use the same pipe.

Manager Gregg stated that even if the pipe is damaged, it can be repaired and was repairable in almost all cases. He noted that they would have to begin a search for a 54" dished head. He added that it could be two to three weeks before one was available. He stated that they were in operation, pressurized, up to Lone Tree Road and that there were 410 to 420 customers north of Lone Tree.

President Swanson asked how long the District could serve the customers at full capacity and pressure from San Justo Reservoir.

Manager Gregg answered 2 to 3 months. He explained a possible temporary connection.

President Swanson asked if the temporary pipe could put the them in full operation by May, if that was reasonable.

Manager Gregg concurred that it was.

President Swanson set a special meeting for March 12, 1998 at 7:30 p.m. to discuss the temporary fix scenario.

Director Perry stated that if they had the information before that date they could expedite and have a special meeting even sooner.

8) DISCUSSION OF DISTRICT FLOOD POWERS AND RESPONSIBILITIES:

President Swanson indicated that he had sent a letter to Rita Bowling, San Benito County Board of Supervisors, suggesting that the two boards get together and work on the responsibilities of flood control and drainage. He noted that the matter was brought up at Tuesday’s Board of Supervisors meeting.

9) CONSIDER RESOLUTION REQUESTING INCLUSION IN PROPOSED

LEGISLATION INCREASING COMPETITIVE BIDDING THRESHOLD:

Manager Gregg explained that competitive bidding thresholds were enacted some forty years ago and that an increase in thresholds was appropriate. He added that it did not preclude going to bid for lesser amounts.

Upon motion duly made, seconded and carried, adopted Resolution No. 98-4 and authorized the President to sign.

Director Buzzetta asked if it precluded seeking competitiveness.

Manager Gregg replied absolutely not.

10) INVESTMENT COMMITTEE; ANNUAL REVIEW OF INVESTMENT POLICY:

Director Gonzales explained that the Investment Committee had met and reviewed the Investment Policy and found it to be in compliance.

Director Buzzetta expressed concern with the rate of return they were receiving and believed they could get a higher return. He added that currently it was certainly safe and conservative. He asked about getting an assessment on the matter.

Counsel Pipal stated that they would have to have some type of financial consultant to do that.

Manager Gregg stated that the first step was to see what other public agencies were doing.

Director Gonzales stated that conservative and low risk investments were the general policy of the Board.

Manager Gregg stated that State law and the Investment Policy required annual review of the policy and Counsel had reviewed the policy, found no changes and that the policy was consistent with current laws.

11) DISTRICT MANAGER/ENGINEER’S REPORT:

Employer-Employee Relations:

Manager Gregg explained that they were at the point where they would be validating signatures on the SEIU signature cards. He explained the procedure of the petition, review and validate signatures, notice to employees and then a 30 day waiting period. He noted that the petitioner (SEIU) had refused an appropriate and quick way to validate signatures.

1998/1999 Water Supply:

Manager Gregg stated that the Bureau had released that there would be a 65% supply south of the Delta.

Paicines Canal:

Manager Gregg explained procedures for the canal and removal of debris and slides. He stated that there was damage upstream of the trash rack and gate. He stated that it was their intention to bypass with a couple sections of 36" culvert and they could divert it.

Hernandez Reservoir:

Manager Gregg stated that the reservoir filled on or about February 7, 1998

and that they were setting the top of the spillway discharge at 250 cfs. He noted that Hernandez Dam made life simpler down here just by being there. He added that the system seemed to be performing well.

District Legislation:

Counsel Pipal stated that he had received a call back from Assemblyman

Frusetta stating that the legislation had come back from legislative counsel, had gone to committee and should be approved shortly.

Urban Water Management Plan:

Manager Gregg explained that it was their intent for the three agencies of the

City of Hollister, Sunnyslope County Water District and San Benito County Water District to create a joint effort with Sunnyslope as the lead agency for contract and administration purposes. He stated that State law agencies that provide urban water supply of 3,000 acre feet or more must prepare a plan. He stated that it was important for the District to be involved in it and that he would bring a resolution back to the Board.

Water Conservation/Management Plan:

Manager Gregg stated that the Groundwater Committee was working on an irrigators’ workshop which was tentatively scheduled for April 9, 1998. He added that they would address irrigation management and fertilizer application and management and also landscaping. He noted that they would be showing them how to use CIMIS and also salt management.

Director Perry spoke of community involvement.

Statements of Economic Interest:

Administrative Services Officer Thome reminded Counsel and Directors that Statements of Economic Interest were due back to her by Wednesday, March 25, 1998.

The vote of each member of the Board on preceding matters was as follows, unless otherwise stated:

AYES: DIRECTORS: Rupert, Gonzales, Buzzetta, Perry, Swanson

NOES: DIRECTORS: None

ABSENT: DIRECTORS: None

The Board adjourned at 9:20 p.m. to a special meeting to be held on Thursday, March 12, 1998 at 7:30 p.m., 30 Mansfield Road, Hollister, California.

________________________________________________

Robert M. Swanson, President

ATTEST:

_______________________________________________________

Denise R. Thome, Administrative Services Officer