MINUTES OF THE REGULAR MEETING OF THE BOARD OF

DIRECTORS OF CRESTLINE VILLAGE WATER DISTRICT

August 15, 2000

The Regular Meeting of the Board of Directors of Crestline Village Water District was called to order by President Olson at 3:00 PM, on Tuesday, August 15, 2000, at the regular meeting place of said Board at its office in Crestline, California.

ROLL CALL: Present were President David Olson, Directors William Huckell, C. N. McGehee, William Valko and Alan Clanin.  Director Clanin arrived at 3:35 PM.  Staff members present were Manager/Secretary Norman L. Hunt, Attorney Ronald Van Blarcom, Engineer Fred Hanson, Auditor Jay Zercher, Field Supervisor Robert Jobe and Office Manager Karl Drew.  Also present was Crestline resident, Thom Walden.

MINUTES OF PREVIOUS MEETING: On a motion by Director McGehee and a second by Director Huckell, the Board unanimously approved the minutes of the Regular Meeting of July 18, 2000 as submitted.

PUBLIC COMMENTS: None.

CROSS CONNECTION CONTROL PROGRAM: Office Manager Drew reported that Mr. Walden had delivered a letter to the Board just prior to the meeting.  The letter was dated July 31, 2000.The Board and staff did not have an opportunity to review the letter prior to the meeting.  The Board asked Mr. Walden why he had not met with Manager Hunt or delivered the letter at an earlier date.  Mr. Walden responded that he had been busy and had not been able to deliver the letter.  On a motion by Director Valko and a second by Director McGehee, the Board unanimously tabled this matter to the next Board meeting.  Director Clanin was absent during the time this matter was discussed.

ANNUAL AUDIT FOR FISCAL YEAR 1999-2000: Auditor Jay Zercher of the firm of Rogers, Anderson, Malody & Scott presented the audited financial statements for fiscal year 1999-2000 to the Board of Directors.  He reported that his firm was again able to give the District an unqualified or "clean" opinion, which indicates that the financial statements fairly present the District's financial position.  Auditor Zercher reviewed various statements with the Board.  The District has had a sound financial year.  Net income was $232,393 lower than the prior year.  This decrease is almost the same as the increase in the cost of purchased water.

REPORT ON MORMON SPRINGS VERTICAL WELL: Manager Hunt reported on the status of the Mormon Springs Well.  Electricity is connected to the well and the District has begun the process of obtaining the appropriate water samples.  The first water samples taken indicate that the water meets all of the standards, except for radioactivity.  Further testing for radioactivity is being done.  The additional testing could take up to 6 weeks to complete.  The District may have to add a treatment process to this well site to remove the radioactivity.  The hydrogeologists have stated that the presence of radioactivity indicates that the well is tapping a body of water that has been there a long time.

The Board also reviewed the cost of the new Mormon Springs Well as compared to the cost of the Anderson Well.  The total cost for the Anderson Well was $118,651.  There is no land cost associated with the Anderson Well since it is located on property the District already owned.  The cost to date for the Mormon Springs Well is $90,943, plus the additional cost of $43,416 for the land that it is on.  This cost includes the cost for drilling two wells, since the first well was not usable.  The District may also be able to recover a portion of the land cost, if it is able to split off a portion of the land and sell it.

PROGRESS REPORT ON FUTURE WELL SITES: Manager Hunt reported that he had met with the consultants, Mark Bulot and Mike Bracher, to discuss the new proposed well site.  The new site is located on a vacant lot located off of Lake Gregory Drive.  The consultants have located the position where they would like the new well drilled.  They expect that water will be located about 400' to 450' deep.  Manager Hunt will be contacting the owner of the property where the proposed site is located.

REPORT ON NEW 1 MG CHAMOIS STORAGE FACILITY: Manager Hunt reported that the tank shell is completed and the coating sub-contractor has begun work.  They have sandblasted and applied the first coat to about 1/2 of the tank interior.  The tank coating should be done about the first week of September.  

The plans for the pump house are completed and Manager Hunt is close to completing the negotiations for a contract for the construction of the pump house.

2000 MAIN REPLACEMENT JOBS - DART CANYON ROAD, CREST FOREST DRIVE, FAULHORN/FIDEN COURT, MORITZ COURT AND HIGHWAY 138: Field Supervisor Jobe reported that the following jobs are completed, including final paving: Dart Canyon Road, Crest Forest Drive, Faulhorn Drive, Fiden Court and Moritz Court.  The District did joint paving with the County of San Bernardino on Dart Canyon Road and Crest Forest Drive, and the County allowed the District to use the District's paving machine to pave Faulhorn Drive, Fiden Court and Mortitz Court.

Manager Hunt reported that work had begun on Highway 138 on Monday, August 14.The District has rented a Vermeer Excavator to excavate the trench.  The asphalt is 12" to 18" thick and the soil is very rocky.  In complying with the California Department of Transportation's specifications, the District is able to install about 200' of main per day.  The work is also being complicated due to the narrowness of the highway and having to keep one lane open for traffic.

DIRECTORS' COMPENSATION: Office Manager Drew reported that as a result of a newsletter that was received from the Internal Revenue Service, directors will now have to be treated like District employees, instead of independent contractors.  The District will start taking payroll taxes from directors' compensation next month.  The directors receive $100 for each day of meetings, not to exceed six days in any month.

Office Manager Drew shared the results of a survey of what other districts located in the mountain area pay their directors.  Three of the five districts surveyed pay their directors $100 per day and the other two pay $50 per day, with most of the districts having one regularly scheduled meeting per month.  State law governs the maximum amount that directors can receive.  A provision has been included in State law that allows water districts to increase the maximum daily amount above $100, if certain procedures are followed.

After some discussion, the Board directed staff to prepare an ordinance that would clarify the District's Directors Compensation Policy.  There will not be an increase to the amount of directors' compensation.  A public hearing will be scheduled for the next meeting.

BOARD MEETING SCHEDULE: The Board reviewed the regular schedule for Board meetings for the rest of the year 2000.  After discussing the upcoming holidays and other upcoming events, the Board rescheduled the October, November and December meetings.  The Board meetings for the rest of the year are scheduled as follows:

     Tuesday, September 19, 2000 - no change to regularly scheduled date. 

     Tuesday, October 24, 2000 - rescheduled from October 17, 2000.

     Tuesday, November 14, 2000 - rescheduled from November 21, 2000.

     Tuesday, December 12, 2000 - rescheduled from December 19, 2000.

MANAGER’S REPORT: There was a brief discussion regarding the System Loss report.

DIRECTOR’S REPORT: None.

As there was no further business, the meeting was adjourned at 5:30 PM.  The next Regular Meeting is scheduled for Tuesday, September 19, 2000 at 3:00 PM.