The following information is presented as a summary of actions and information from the July 24, 2007 meeting. These are not the official minutes of the meeting.

CLOSED SESSION
Reportable actions were taken on the following items:

1. Liability Claims.
Board voted to deny the request for permission to file claim.

4. Conference with Labor Negotiators.
Board voted to approve agreement between the District and Patti McGonigle, Executive Assistant to the Board of Directors, accepting her retirement effective July 31, 2007.

OPEN SESSION

CONSENT CALENDAR
The following sets of minutes were approved:

• July 10 Regular Meeting
• June 26 Regular Meeting
• June 12 Regular Meeting
• June 11 Special Meeting

ACTION CALENDAR

1. Waiver of Conflict of Interest/Blue Ridge at Lake Arrowhead.
2. Retention of Andy Hitchins, Legal Counsel.
   The District is seeking legal guidance regarding the water supply requirements approved by the County of San Bernardino for the Blue Ridge at Lake Arrowhead project by Hawarden Development Corporation.
   
   Attorney Scott Campbell of Best Best & Krieger stated that their firm also represents Hawarden in a lawsuit challenging the entitlements from the County of San Bernardino for the project. In light of a potential conflict, Campbell stated that Board may choose to retain Andy Hitchins as separate counsel or may retain current counsel and sign a conflict of interest waiver.
   
   The Board voted to retain Andy Hitchins as Legal Counsel for purpose of legal guidance regarding the Blue Ridge at Lake Arrowhead project.
   
3. Authorization to Post Notice of Vacancy.
   The Board must appoint a Director to the vacant position for the balance of the term (November 2009) or call a special election within 60 days of the vacancy. If the Board does not appoint or call a special election within the time frame, the responsibility of filling the vacancy defaults to the County Board of Supervisors.
   
   The Board authorized the posting of the Notice of Vacancy and will be accepting all resumes for the appointment until August 17, 2007.
   
4. Approval to Record Closed Sessions.
   The Board discussed the pros and cons of recording all or portions of closed session items. The motion to record closed sessions failed due to lack of a second motion.

DISTRICT MANAGERS’ REPORTS
President Heyck announced that he asked – for future meetings – that staff Board items include an Executive Summary and be presented by the General Manager with staff available for additional details, if necessary.

• Ken Nelsen, Interim General Manager & Operations Manager, reported on:
• District’s MOU discussion items and joint efforts with Arrowhead Lake Association including groundwater well locations, perchlorate testing, and dredging.
• Crestline-Lake Arrowhead Water Agency (CLAWA) is receptive to exploring options for secondary pipeline.
• CLAWA is currently able to deliver 1200 gallons per minute (5 acre feet/day).
• Water conservation is holding steady, but there’s more work to be done. Currently, the District has delivered 167 acre feet more than same period in 2006. However, when compared to 2002 (the next driest year) the District is delivering 6 percent less overall even with an increase in connections. Beyond that, more than 176 acre feet less has been taken from Lake Arrowhead. District is doing more home water audit surveys and enforcements this year. A full water conservation status presentation will be made at August 14 meeting.
• Lake Arrowhead Country Club has used less water than 2002. They have currently used slightly over 140 acre feet, with only 67 acre feet of that from Lake Arrowhead.
• Automatic Meter Reading project has completed approximately 1,500 meter replacements and 1,500 meter retrofits.
  
• Bob Ardis, Maintenance Manager, reported on:
• Meter installation vendor is averaging 100 meter installations per day. Additional maintenance staff is being utilized to dig out approximately 150 meters per day to prepare for vendor installations.
• Water line replacement project for Tract 63 is ongoing with Burnt Mill, Cottage Grove and Summit water lines completed (with exception of paving) and two-thirds of Terrace completed (with exception of paving).
• Overflow of Wabash Water Reservoir Tank occurred on Monday, July 23 which was the result of the Mill Pond project hooking into the distribution system which was not mapped correctly. As a result, approximately 150,000 gallons of water overflowed with drainage toward the lake before the error was discovered and fixed.
  
• Ryan Gross, District Engineer, reported on:
• Recycled Water Project – District is continuing its work on the State Revolving Fund (SRF) loan/grant application which was submitted in August 2006. A funding commitment is expected by the end of September 2007 for the water recycling funding component (approx $6 million). The water pollution control/expansion of the facility funding component (approx $6 million) requires more information and will be completed at a later date. Recycled water is expected to be available for the 2010 irrigation season. The District is continuing to meet with the Lake Arrowhead Country Club on all outstanding items such as irrigation drainage.
• Burnt Mill Water Storage Tank Project is 50 percent complete.
• Groundwater Development - Environmental review underway for 5-7 wells identified in the Integrated Water Resources Plan near-term solutions and should be ready for public comment in September 2007.
• Water & Wastewater Facilities Master Plan Updates – Draft Capital Improvement Projects program is due in August 2007.
• All Integrated Water Resources Plan materials from the three Project Advisory Committee meetings are on the District’s website. The next Project Advisory Committee meeting is scheduled for September 14, 2007 where the top five alternative portfolios for water resources will be presented. Information from that meeting will be presented to Board at its Sept 25, 2007 meeting.

PUBLIC COMMENTS

• Gretchen Sherman asked about the videotaping item and it was stated that the item would be on the August 14, 2007 meeting agenda.
• Patrick Marley commented on the Joint Statement from Arrowhead Lake Association and the District.
• Paul McNamara asked if the upcoming election was of ratepayers or registered voters and it was stated that Board Members are elected by registered voters in compliance with the law. McNamara also asked if any money was going to be saved from the Automatic Meter Reading project since not all meters will be replaced and it was stated that the project budget already took that fact into account.
• Mr. Voelker stated that the Board should wait for the solutions coming from the Integrated Water Resources Plan process regarding additional water supplies and complimented the Board for working with other agencies to develop joint solutions.
• A Skyforest resident asked why San Bernardino has so much water and it was stated that San Bernardino obtained a large allotment of water from the State Water Project in addition to significant groundwater supplies.

BOARD MEMBER COMMENTS

• Director Keefe commented on…
• Positive progress of meetings with Arrowhead Lake Association.
• Meetings with Congressman Lewis’ office and Senator Feinstein’s office to discuss District’s needs and requests for funding.
• Congratulated staff for all they are doing to facilitate those meetings.
• President Heyck commented on…
• New “Solutions” Box which will be hanging outside the Board Room and in all District facilities. He invited everyone to share their ideas regarding solutions.
• Positive progress of meetings with Lake Arrowhead Country Club.
• Feasibility and advisability of selling the Willow Creek facility and housing staff members in temporary units while a new facility is built.