WATERMAS0082.

Minutes

CHINO BASIN WATERMASTERWATERMASTER BOARD MEETING

May 23,2013

The Watermaster Board meeOng was held at die offices of the Chfno Bash Watennaster, 9641 SanBernardino Road, Rancho Cucamonga, CA, on May 23,2013 at 11:00 am.

WATERIiliASTER BOARD MEMBERS PRE8EMT

BobKOhn, ChairJhnCuiat^BobCraigSteve EUeBobBowcockPeter RogersPaulHofarJeff Ptefson for Geoffrey Vandan Heiivel

WATERMASTER BOARD MEMBERS ABBEMT

Charles Field

Three Valleys Municipal Water DistrictFOntana Union Water CompanyJunjpa Communtty Services DistrictInland Empire Utilities AgencyVulcan M^rlab Company (Calmat Dtvlslon)City of CIdno HillsAgricultural PoolAgrtcuttural Pod

Western Municipal Water District

a Peter KavounasDanielle MaurizioJoseph JoswiakJanfneVWson

WateimaatarConsultante Preaont

Scott Slater

Others Present

BobFeenstraTracy EgoscuePeteHaQBrhn GeyeDavid DeJesusMarty ZvtrtmllsJo Lynne Russo-PereyraJohn Bosler

DaveCrosleyScott Burton

RonCrdgNadeon Maja]Sheri RojoTenyCatllnChris BerchCurtis PaxtonJack SatisfyTodd CorbhDarron PoulsenBen LewisTeriLaytonKenJeske

General ManagerAssistant General ManagerChief Financial OfficerReoording Seoatary

Brownstein Hyatt Farber & Schreck

Ag Pool-DairyAgPoolAtfomeyAg PtMil - State of Catifbmh - CIMAuto Club SpeedwayThree Valle]^ Municipal Water DistrictCucamonga VaSay Water District

Cucamonga VbOey Water DistrictCltyofChhoCity of OntarioCltyofChho HQsCl^ of Chho HillsFontana Water CompanyInland Empire Utliitles AgencyInland Empire Utilities AgencyChho Desaltffi-AuthorityWestern Municipal Water DistrictJurupa Community Sendees DistrictCity of PomonaGolden State Water CompanySanta Antonto Water CompanyCalifomfo Steel Industries (CSI)

STATE'S

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Attachment F CalPERS Exhibit 14 Page 1 of 6

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r Minutes Watermaster Board Meeting May 23,2013

Chair Kuhn called the Watermaster Board meeting to order at 11:01 a.m.

PLBDGEOFALLeQIANCE

AQEMDA - ADDlTIOMSffiEQRDER

There were rw additions or reorders made to the agenda.

I. CONSENT CALEMDARA. MINUTES

1. Minutes of the Watermaster Board Meeting held March 28.20132. Minutes of the Watermaster Board Confidential Meeting held April 18,2013

B. FINANCIAL REPORTS1. Cash Disbursements for the montii of February 20132. WatermasterVISA Check Detail for the month of February 20133. Combining Schedule for the Period July 1,2012 through February 28,20134. Treasurer'sReportofHnandalAffaJrsfbrthePeriodFebruary 1,2013through

February 28,20135. Budget vs. Actual Report fortiie Period July 1,2012 through February 28,20136. Cash disbursements for the month of March 20137. WatermasterVISA Check Detail for the month of March 20138. Combining Schedule for the Period July 1,2012 through March 31,20139. Cash Treasurer's Report of Rnancial Affairs for the P^od March 1,2013 through

March 31,2013^ 10. Budget vs. Actual Report for the Period July 1,2012 through March 31,2013^ 0. WATER TRANSACTION

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1. Consider Approval tor Notice of Sale or Transfar - The purchase of 1,100.000 acre-feet ofwater from Santa Ana River Water Company (SARWC) by Jurupa Community ServicesDistrict (JCSD). This purchase is made first from SARWCs Annual Production Right, witharry additional from storage. Date of application: March 11,2013.Pool Approval: April 11,2013

D. PERSONNEL COMMITrEE RECOMMENDATIONS1. 3-Year Plan For Employees To Contribute 8% to CalPERS Retirement Plan2. COLA Increase of 1.95% Effective July 1,20133. Adopt Publldy Available Pay Schedule4. Medicai-DentaLVision Benefits Allowance Policy5. Change of 457 Deferred Compensation Plan Administrator6. Chino Basin Watermaster Employee Manual7. Chino Basin Watermaster Administration Policy Manual Section 3

E. RESOLUTION 13-051. Resolution of the Chino Basin Watermaster, San Bernardino County, CA, EstabQshIng ICMA

Retirement Corporation As the Watarmaster's 457 Deferred Compensation PlanAdministrator

F. CBWM PRIOR COMPENSATION SCHEDULES1. Salary Matrix for FY 2011-12 and FY 2012-13

Mothn by Peter Rogers, second by Bob Craig, and by unanimous voteMoved to approve Consent Calendar items A through P, as presented

CBWMOaiS

Attachment F CalPERS Exhibit 14 Page 2 of 6

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WATERMAS0082^

Minutes Watermaster Board Meeting May 23.2013

H. BlISIMPSSlTgMfSA CDA REQUEST RE REMEDIATION OF CHINO AIRPORT GROUNDWATER PLUME

Mr. Kavounas advised this item (s also on the Closed Session for discussion by the Board. Inthe staff letter thera is no recommendation for the Board to act Staff Is working veryproductivety with the Pools, and at this time, the Pools recommendation Is to wait until a fewquestions have been further explored.

B. WATERMASTER FISCAL YEAR 2013-2014 PROPOSED BUDGET

Approve the Proposed FY 2013-2014 Budget as Presented.

Mr. Kavounas advised the Board that the budget was presented to the Parties for the first timeduring a workshop, and reviewed dunng a second workshop a week later. The budget has beenreviewed and approved by the Advisory Committee.

Mr. Joswiak gave a presentation, of the proposed FY 2013-2014 budget

Motion by Jim Curatalo, second by Jeff Pierson, and by unanimous voteMoved to approve Business Item B, as presented:• PY 2013/14 Revised Budget of $6.724,736• Authorize Staff to Payoff CaiPERS Side Fund

C. OVERLYING (AGRICULTURAL) POOL MOTION TO MODIFY FEBRUARY 19,1998 RUUNGAPPOINTING NINE-MEMBER WATERMASTER BOARDFor Watermaster Board: Information Only.

Ms. Egoscue, counsel for the Ag Pool, stated this Item is for the Board's consideration, and canbe found on page 215 of the packet The draft motion, including a declaration in support by thelfChalr, is a v^ simple and straight forward approach to go the Judge, and clarify, Boardrepresentatives, and the alternates In particular, can be physically the same person as thoseserving on Committees, as evidence by Mr. Pterson today.

Modon by Bob BowcocK second by Peter Rogers, and by unanimous vofeMoved to express Watermaster Board support for the Overtying (Agricultural) Poolmotion.

D. RIGHT OF ENTRY PERMIT BETWEEN THE STATE OF CAUFORNIA AND CBWMAuthorize the General Manager to Execute the Proposed R^ht of Entry Permit, AllowingAuthority to Approve Non-Sutjstantive Changes.

Mr. Kavounas reported teat tee proposed permit is an agreement among the Stale of Caiifomiaand Watermaster, to allow access for Watermaster to continue to collect data from 17 wellslocated on State property. The State's Insurance requirements are within existing Watermasterpolicies. The item was reviewed and approved by Pools and M/isoiy committees in April

Motion by Steve Bie, second by Jeff Pierson, and by unanimous voteMoved to approve Business item D, as presertted

IIL RgPORTSfUPDATPS

A. LEGAL COUNSEL REPORT

. 1. CalPERS Appeal/ Mr. Slater reported teat regarding the appeal matter involving Mr. Alvarez, tee Watermaster^ Board previously authorized filing an appeal to address a concern that was expressed by

~ . PERS regarding Mr. Alvarez' toN compensation. Watermaster appealed on the basis thatt PERS was not considering the full totality of the circumstances, and that tee regulations they

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Attachment F CalPERS Exhibit 14 Page 3 of 6

WATERMAS00825

MinutBs Watermastsr Boafd Meeting May 23.2013

were attempting to impose were adopted mid-way through the year that Mr. Aivarez wasempioyed liy Watermaster. Mr. Alvarez continuss to prosecute his appeal separately.

B. GM REPORT

1. Kydrogeology Fundamentals / Westside Basfai Tour. Mr. Kavounas thanked everyone thatattended the tour. For those that were unalrie to attend, a folder with material that evefyoneelse received is available.

2. Other Mr. Kavounas stated that last Friday we had a very good technical meeting withrepresentatives from Western Municipal Water District, and that was for them to seeWatemmster's extensive and involved database for tracking an water related information inthe Basin. The database Is a strong tool for tracking every well, ownership Information,production information and more.

3. There appears to be a change In the scope ofWEi as Itconcems the Recharge Master PlanUpdate Amendment Watermaster and consultants meet on a monthly basis and reviewworkload as weQ as the scope of work. Whatfs become apparent <<ue to the Interactionthe Steering Commtttee WEI has been asked to do more work on the RMPU Amendmentthan originally thought last January and February when this was presented to the Board. Thescope changes for WEI pertain prlmarfiy to the range of recharge opt^s that are Included Inthe document The list was vary narrow at firsd. but working wlft the Steering Committee thedirection was to ooilect biformatlon on every recharge option, resulting In a dramatlG increasein WEI'S work. That means they do a IHtte lass work In some other areas, but overaO theycan't offset the overall increasa Joe Joswiak will coma back to the Board with an amendedbudget at some point. In approximatety two months. Watermaster Just became aware of thislast week during our month^ review with WEI.

Chair Bob Kuhn atired to confirm the budget change will be in the 2012-2013 budget; Mr.. Kavounas confirmed it is the current, 2012-2013 budget

I Mr. Elie asked If the Board win get an overview of what Mark Wikteimuth is gobtg to try toacoompfish. Mr. Kavounas responded tirat the recharge projects are getting Idertttfled, thecost of each project Is esttmated, and the expected yield of each project Is calculated; theSteering Committee will start looking at maki^ selections of those projects and when thathappens, the Board will start seeing the consolidated "Section 8' of the final Amendmentre^rt around June or the month after.

Mr. Jeff Pierson asked if the WEI costs are known at this ttma Mr. Kavounas responded thatthis effort te at a pomt right now where all of it is starttng to oome together. It is dIfRciitt topredict today exai% what the fDial cost is going to ba More than likely, we'll have staff comaback to the Board a couple of months wltti final numbers.

IV. IMPQRfWITIQM

TrpntT toAiitH2oi3No comment was made.

and stated that it was very well planned and thought out Everypart of it was interesting and helpful to better understand wtiiat errectty the Chino Basin Is, and whatsgoing on. Also, Andy Malone (WQ) was phenomenal

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No comment was mada

(^^1^ His regutar open Wtatermaster Board meeting was oonvensd to hold Rsconfklentid session at 11:28 sum.

CBWM0B17

Attachment F CalPERS Exhibit 14 Page 4 of 6

WATERMAS00826

Minutes Watermaster Board Meettng May 23,2013

VII. CQMPIPgMTTAt. SBSStOM - PnSSIBLB ACTIOM

Pursuant to Article 2.6 of the Watermaster Rutee & Regulaiione, a Confidential Session may be heldduring the Watermaster committee meeting for the purpose of discussion and possible acUon.

1. CDA Request Re Remediation of Chlno A^rt Groundwater Plume

The confidential session concluded at 12:20 p.m.

There was no reportaUe action ftom the oonfidenfial session.

VIII. Pimiftg MEgnMQg AT WATgPMAanrp

Thursday, May 23,2013 11:00 a.m.Tuesday, May 28,2013 9:00 am.* Thursday, May 30,2013 9:00 am.Thursday, June 6,2013 10:00 am.Thursday, June 13,2013 9:00 am.Thursday. June 13,2013' 11:00 am.Thursday, June 13.2013 1:30 p.m.Tuesday, June 18,2013 TBJLTuesday, June 18, ̂ 13 1:00 p.m.Thufsd^. June 20,2013 8:00 am.Thursd^, June 20,2013 9:00 am.Thursday. June 20,2013 10:00 am.Thursday, June 27.2013 11:00 am.

Watermaatar Board Meeting / Public HearingGROG MeetingRMPU Amendment Steering Committee MeetingRMPU Amendment Steering Committee MeetingAppFopriathre Pod Meet&ng 'Non^rfoiititral Pool Conference Call MeetingAgricuituial Pod MeetingSafe Yield Recalculation WorkshopEBites & Sexual Harassment Prevention TraininglEUAOYY MeetingAdvisory Commlttae MeetingRMPU Amendment Steering Committee MeetingWatermaster Board Meeting

( * Recently added RMPU Ameridment Steering Commlttea Meeting

Chair Kuhn adjourned the Watermaster Board meeting at 12:21 p.m.

Secretary:

Minutes Approved: June 27.2013

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Attachment F CalPERS Exhibit 14 Page 5 of 6

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Attachment F CalPERS Exhibit 14 Page 6 of 6