March 15, 1999
7:30 p.m.
The Board
of Directors of the San Benito County Water District convened in Special
Session. All members of the Board were present together with Manager/Engineer
a. Pledge of Allegiance to the Flag
President Perry called the meeting to order and requested all to stand and recite the Pledge of Allegiance to the Flag.
b. Public Input:
The Public Input portion of the meeting was opened and closed by President Perry, hearing no comment from the public.
1. District Investment Program
President Perry handed the floor over to Manager/Engineer Gregg. Manager/Engineer Gregg stated the question the Board had was whether or not to place a limit on investments in LAIF. District Counsel Pipal stated he had spoken with Pat Beasley, LAIF Administrator, regarding LAIF funds being loaned to State agencies. She assured us that LAIF cannot be used as loans. Counsel Pipal stated he felt it was a good way to invest surplus funds. Director Swanson stated he was satisfied with the answer. Manager Gregg stated another issue was the freezing of LAIF funds. He stated the State Controller sent out letters to investors, including LAIF investors, about funds being frozen. LAIF Administrators took offense that the Controller sent out letters. They assured that funds have not been frozen. Director Rupert asked what type of investments are liquid? Manager Gregg stated some Money Market accounts, sweep account type; Negotable CDs and Treasuries to name a few. He stated the objective was to maintain a minimum of six months expenses in a liquid account. He stated with the direction of the Board, the limit of LAIF Investments will be removed.
b. Investment Authority
After discussion by the Board, Manager Gregg stated under ‘Delegation of Authority’ in the Investment Policy, the last paragraph will be reworded to state, ‘No sale or purchase is to be made by the Manager without approval of both Investment Committee and the Board of Directors.
c. Investment Manager/Advisor
Manager Gregg stated he was not clear whether discussion got to a conclusion. He stated the Investment Policy does not address this issue. Director Gonzales stated the Committee never did come to an agreement. Director Swanson stated he would like to have an annual review team review the District’s portfolio. Manager Gregg stated PFM is one of a number of firms around the country that are non-brokers. He stated they will certainly review the investment performance as a consultant/advisor. He stated an annual review would probably be $5,000 per year. President Perry stated the review should be done in February. He asked if it should be incorporated in the Investment Policy? Manager Gregg if the Board wants it in the Policy he recommended adding it to Page 6. He suggested, ‘District’s investment program and investments shall be reviewed annually by an investment advisor/consultant.’ Director Rupert stated he supports an annual review and stated he felt the Board does not need an investment manager. Director Tobias asked for clarification on the Liquidity section. Manager Gregg stated the intent was that LAIF is one liquid account. He suggested, with approval of the Board, changing the Section to read, ‘Shall maintain one liquid investment account in addition to LAIF. That account sufficient to cover six months expenses…..’ All were in agreement with the proposed change.
d. Review and Consideration of District Investment Policy
Director Swanson requested an approval of the draft with the changes, to be confirmed at the regular meeting. President Perry referred the Investment Policy back to the committee and Manager Gregg for completion of the draft with tonight’s changes. He requested the revised draft to be mailed out to the Board on Friday and to be brought to the regular meeting. President Perry stated the final document will be voted upon at the regular meeting.
2. Presentation and Discussion of Northeast Fairview Specific Plan Water Supply Assessment
Manager Gregg stated he relies on certain district policies in reviewing this project. He stated his intent was to present the assessment, go over the conclusions and work out a schedule to present the report for the Board’s acceptance. He stated the project site, approximately 291.8 acres, had been zoned one acre parcels. He stated the general plan update, the water code, and the general government process including CEQA has major influence in this project. President Perry asked if there was an agreement with Sunnyslope to supply the water to the project? Manager Gregg stated at this time, there is no agreement in place. He also stated this district does not have a contract to supply Zone 3 water outside of Zone 3. Director Swanson asked if the project’s intention was to dispose of the waste water in the city’s waste water facility? Manager Gregg stated the proposal is to treat the waste water itself. He stated they propose to use the treated water for landscaping, parks, and school grounds. Director Swanson asked if they are going to export waste water to other surrounding property that other people own. He asked what if the other property owner doesn’t want that waste water on their property, where will it go? Manager Gregg stated unless there is some long term obligation, you have the risk of it going down to San Juan Valley. Manager Gregg stated the primary plan is simply to receive water from Sunnyslope and unless the treatment plant is built, the quality will leave a lot to be desired. He stated that information should be in a letter and conveyed to the San Benito County Planning Commission and Planning Department. President Perry asked how Sunnyslope could supply the water when their water is below required limits. Manager Gregg the District’s purpose is to determine whether there is an insufficient supply of water and systems for the project. President Perry asked if they would downsize the project at 25% would there be enough water? Gregg - no. Counsel Pipal asked if the recapture agreement would apply? Manager Gregg stated he would have to go back to see if that was the Zone or the District. Manager Gregg stated in terms of next steps, the report will go back to the Groundwater Committee. President Perry asked if this will be the Board’s comments to the EIR? Manager Gregg stated the Board has a second opportunity when they revise their EIR.
The vote of each member of the Board on the preceding matters was as follows, unless otherwise stated:
AYES: DIRECTORS: Swanson, Perry, Rupert, Gonzales, Tobias
NOES: DIRECTORS: None
ABSENT: DIRECTORS: None
The Board
adjourned to a Regular Meeting to be held on
___________________________________________
Kenneth Perry
President
ATTEST: _____________________________________
Janet L. Torres
Administrative Services Officer