MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE CENTRAL BASIN MUNICIPAL WATER DISTRICT September 22, 2014

Transcription

1 MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE CENTRAL BASIN MUNICIPAL WATER DISTRICT September 22, 2014 A regular meeting of the Board of Directors of Central Basin Municipal Water District was held on Monday, September 22, 2014 at 10:00 a.m., at 6252 Telegraph Road, Commerce, California. President called the meeting to order at 10:02 a.m. and presided thereover. 1. ROLL CALL. The following Directors were present:,,,, and President. Also present were General Manager Perez and Assistant Interim Legal Counsel Jared. - INVOCATION. Director delivered the Invocation. - PLEDGE OF ALLEGIANCE. Director led the Pledge. - CERTIFICATION BY THE BOARD SECRETARY TO THE BOARD OF DIRECTORS THAT THE AGENDA WAS POSTED IN ACCORDANCE WITH THE BROWN ACT. The Board Secretary confirmed that the agenda had been properly noticed. 2. PUBLIC COMMENT AND PRESENTATIONS- (Members of the public are invited to present comments to the Board on matters within the District's jurisdiction but not on the agenda. The public may present comments on agenda items when the matter is called. There will be a three (3) minute limitation per each member of the audience who wishes to make comments in order to provide a full opportunity to every person who desires to address the Board of Directors.) Jeanne-Marie Bruno, General Manager of Park Water Company, reported that Algonquin Power and Utilities Corporation had announce that their regulated utilities business, Liberty Utilities, would be purchasing the holding company of Park Water Company. She stated that Liberty Utilities provides water, natural gas, and electric transmission and distribution in the U.S. She stated that the process to purchase Park Water would take about a year to go through the PUC and would provide updates as they became available. Sandra Orozco, resident and activist of the community for over 42 years, specifically in the City of Maywood, stated that she was deeply involved in getting rid of the corruption in Bell. She stated that the reason she was at the meeting this day was

2 September 22, 2014 Page 2 because she wanted to express her deepest concern of the General Manager at Central Basin. She stated he [the General Manager] had colluded with Art, her representative on the Central Basin Board and the Chairman of this Board Phil. She stated that he [the General Manager] had illegally paid a $16,000 personal debt from using public funds, and had also continued the $597 in monthly car allowance to Director Art who did not have a valid driver's license since 2006 until August of this year. She stated that this was a violation of the District's administrative policy. She stated that they [the Board members] were currently the subject of an investigation by the District Attorney and other law enforcement authorities. She stated that ACWA/JPIA determined that was one of the causes of Central Basin losing its insurance earlier this year. She stated that sued Central Basin, his own agency, for $73,000 in workers compensation payments for an accident he caused on his personal time and falsely claimed he was working for Central Basin at the time. She stated that an ACWA/JPIA investigation proved he was not on District time and that this was fraud. She stated that colluded with General Manager Tony Perez, comparing him to Robert Rizzo and was sitting right there [at the dais], to pay 's $16,000 personal judgment for one of his many drunk driving episodes in a six car accident. Orozco stated that at the time, did not have a driver's license and did not have insurance. Furthermore, she stated that had a criminal record dating back to 1989, including seven convictions and charges of destroying public property, domestic violence, drunk driving, theft and identity theft. She stated that Art was a career criminal and had hired his personal criminal attorney, Mr. Glasman, who was there as Central Basin's lawyer. She asked where are the people running Central Basin and stated these people should be removed from office. She stated that Art also approved a secret $2.7 million slush fund that was found to be illegal by the District's own investigators. She stated he [Art ] was charged and convicted with 13 counts of illegal campaign practices and fined $3,000 by the Fair and Political Practices Commission, and the list went on. She stated it was horrendous, horrendous what he [Art ] had been doing. She stated this was another City of Bell scandal here with all the same characters, George Cole as Phil, Tony Perez as Robert Rizzo, Art

3 September 22, 2014 Page 3 as Oscar Hernandez and Arnold Glasman as legal for former Bell City Attorney, who colluded with their illegal acts. She stated that they need honesty, integrity in their government and these people are wrong. She stated they were the crooks that are in charge at Central Basin and they needed to be removed. She questioned and asked why he had his seat low at all times. She stated he [] mentioned Jesus and had to be kidding her. She stated he [] was far from Jesus and that he was a criminal and evil. Director Leticia stated that she found it rather unfortunate that she had to speak from the podium and could not speak from the dais, and that the chairman refused to allow the proper discussion on the issue. She stated she was there [at the meeting] as a member of the Central Basin Municipal Water District for that reason. She wanted to express her continued concern to the chairman of his collusion with a local newspaper to continually print [Director was interrupted by the President asking who]... she stated a local newspaper, the Los Cerritos News, to continually print false information defaming the agency. She stated shame on you Mr. Chairman. She stated there was an article [which she had] that said that Central Basin Director 's whistleblower lawsuit had cost the Central Basin $270,000 and that it [the newspaper] said he [the chairman] ordered an investigation into the cost of the Qui Tam and that she was suing the Central Basin. She stated that this newspaper had continually printed that she was suing the Central Basin. She stated she was not suing the Central Basin. She stated the whistleblower, the Qui Tam lawsuit was filed against two law firms who under his [the chairman] watch, before she was elected to the Board, improperly moved $2.7 million dollars out of the District coffers. She stated the Central Basin Board ordered an investigation into the matter and that the investigation concluded, in fact, that the money had been illegally moved out of the coffers and it was improper. She stated that this Board refused to do anything about it and as a member of the public, as a regular resident, she had the authority to file the whistleblower lawsuit against the firms who wronged the agency and to make this agency whole. She stated he [the chairman] had colluded with the newspaper to continue to print lies about the Qui Tam. She stated that when they were successful in the Qui Tam lawsuit, the Central Basin would be made whole,

4 September 22, 2014 Page 4 meaning that Central Basin would be able to recover the $2.7 million and hopefully any other costs that had been associated with this particular case. She stated that the Central Basin as it had been seen on the website, declined to get involved with the lawsuit and for what reason she had no idea. She stated it was their obligation as members of the Board to make sure that when they hired individuals, whether they were contractors or lawyers that they were looking out for the best interest of the agency. She stated that unfortunately that was not happening at the time and they improperly moved out $2.7 million. She stated that she just wanted to make sure and asked that he [the chairman] stopped the lies and hold the newspaper [Los Cerritos News] accountable for what they were writing. Director Art stated that when he found out about it [the $2. 7 million Trust fund] he brought it to the dais. He said he did not have a need to sue the District. He stated that the same people who have the Qui Tam lawsuit going, are the ones that fired the people that exposed it. Director stated that she wanted to make a final comment and stated that this lawsuit [the Qui Tam] was not against the District. She stated this lawsuit was against the lawyers who improperly moved money out of the District coffers under their [the previous Board] watch. Director asked Director how much she would make [from the lawsuit]. Director stated nothing. Director stated that she was now lying to the public. Director stated that she had to resort to filing this lawsuit because this Board refused to take any action against the lawyers who defrauded this agency. Director stated that they did take action. He stated there were two agencies investigating it already when he brought it up. 3. WALK-ON ITEMS: ITEMS OF BUSINESS NOT APPEARING ON THE POSTED AGENDA BUT WHICH MUST BE ADDED TO THE AGENDA SUBJECT TO REQUIRED FINDINGS UNDER GOVERNMENT CODE SECTION (B) BECAUSE IMMEDIATE ACTION IS REQUIRED.

5 September 22, 2014 Page 5 General Manager Perez reported that there were no walk on items but that Item No. 27 had been pulled from the agenda. (Determine the need to discuss and/or take action on item(s) introduced that came to the attention of the District subsequent to the posting of the agenda.) NOTE: At the discretion of the Board. all items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. 4. MWD ACTIVITIES UPDATE Tammy Hierlihy reported that in July 2014, Metropolitan began discussions with the member agencies to review and develop updates to the Water Supply Allocation Plan. She stated that the goal of the plan was to ensure that Metropolitan met each of its member agency's imported water demand. She reported that District staff had participated in the workgroup discussions, which would continue in the fall, when Metropolitan planned to bring information to their Board for discussion of potential adjustments to the plan. She reported that Metropolitan had recently held discussions with the member agencies to review updates for the Purchase Agreements, which allowed member agencies to purchase more water at the lower Tier 1 rate. She stated the discussions would continue throughout the coming weeks. Tammy also reported that Metropolitan issued an imported water shutdown schedule for , along with a preliminary five-year schedule. She stated the shutdowns were necessary to perform required maintenance, inspection and repairs and typically occurred during the time period of October through April. She stated that the Second Lower Feeder was scheduled for a rehabilitation project in November. She reported that Central Basin and Metropolitan staff would be meeting with the affected entities which included the Cities of Signal Hill, Lakewood and Long Beach within the next couple of weeks to coordinate operational activities. Lastly, she reported that Central Basin was coordinating a workshop to facilitate discussions on managing water supply for the groundwater basin to include representatives from Metropolitan, the Los Angeles County Flood Control District and the Water Replenishment District. She stated that the workshop was originally scheduled for September 18, but was being postponed.

6 September 22, 2014 Page 6 Director provided an update on the recent MWD Board decision pertaining to consideration of salary increases for four executive offices at MWD. He stated it was intense and ultimately the decision was to give a 2% increase across the board for all with the exception of the Ethics office who received 16%. CONSENT CALENDAR AUGUST 25, 2014 CONSENT CALENDAR ITEMS 5. ACTION ON MINUTES - June 5, 2014 (Special); July 9, 2014 (Special); and Meetings of the Board of Directors 6. FINANCIAL REPORT A. DEMANDS Demand Numbers through (Excluding Demand No ) for a total amount of$ 4,562, (including net payroll and wire transfer to MWD). B. TREASURER'S CASH AND INVESTMENT REPORT JULY NET REVENUE SUMMARY BUDGET TO ACTUAL OPERATING STATEMENT - JUNE YEAR-TO-DATE WATER SALES 9. WATER SUPPLY AND RESOURCES UPDATE 10. RECYCLED WATER CUSTOMER DEVELOPMENT UPDATE SEPTEMBER 22, 2014 CONSENT CALENDAR ITEMS 11. ACTION ON MINUTES - June 16, 2014 (Special); August 13, 2014 (Special); August 25, 2014 (Regular) meetings of the Board of Directors 12. FINANCIAL REPORT A. DEMANDS Demand Numbers through (Excluding Demand No ) for a total amount of$ 6,061, (including net payroll and wire transfer to MWD). B. TREASURER'S CASH AND INVESTMENT REPORT AUGUST NET REVENUE SUMMARY BUDGET TO ACTUAL OPERATING STATEMENT - JULY YEAR-TO-DATE WATER SALES 15. WATER SUPPLY AND RESOURCES UPDATE 16. RECYCLED WATER CUSTOMER DEVELOPMENT UPDATE

7 September 22, 2014 Page 7 President called for the motion to approve this [the Consent Calendar]. ACTION: Upon a motion duly made by Director to approve the Consent Calendar was seconded by Director. Director addressed the chairman and indicated that she would like to abstain from voting on the legal bills that were on the demands. The President asked the Board Secretary to make a note of Director request. General Manager Perez addressed the President and stated that just to be clear, they [the Board] were approving Items 5-16 [of the Consent Calendar for August and September]. The Board President stated yes and asked for the roll call. The Board approved these items by the following roll call vote: Director stated that with the exception of her abstention on the warrant run for the legal bills it was a yes. ACTION CALENDAR AUGUST 25, 2014 ACTION CALENDAR ITEMS 17. PRESENTATION, DISCUSSION AND APPROVAL OF POLICY REGARDING THE DAY AND TIME DIRECTORS TAKE OFFICE RECOMMENDED ACTION: That the Board:

8 September 22, 2014 Page 8 1. Approve and adopt the policy per the requirements under AB 72 and as written in Exhibit "A"; 2. Direct staff to revise the Oath of Office Policy, Part 2, Chapter 1, Article 1, Section 1.3; and 3. Approve, adopts, and authorizes the President to sign Resolution No , "A RESOLUTION OF THE BOARD OF DIRECTORS OF CENTRAL BASIN MUNICIPAL WATER DISTRICT AMENDING RESOLUTION NO (ADMINISTRATIVE CODE) AS IT RELATES TO THE DAY AND TIME DIRECTORS TAKE OFFICE." ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote: 18. PRESENTATION, DISCUSSION AND ADOPTION OF DISTRICT'S CAPITALIZATION POLICY RECOMMENDED MOTION: That the Board approves, adopts, and authorizes the President to sign Resolution No , "A RESOLUTION OF THE BOARD OF DIRECTORS OF CENTRAL BASIN MUNICIPAL WATER DISTRICT ADOPTING PART 4, CHAPTER 1 OF THE ADMINISTRATIVE CODE." and thereby adopting the new Capitalization Policy into the Administrative Code. ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote:

9 CBMVVD Meeting Minutes September 22, 2014 Page PRESENTATION, DISCUSSION AND APPROVAL OF CONTRACT FOR THE INTEGRATED SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) ASSET MANAGEMENT SYSTEM AS IT RELATES TO THE WATER AND ENERGY EMERGENCY END USE DEMAND MANAGEMENT MEASURES PROJECT (DOE PROJECT) RECOMMENDED MOTION: That the Board authorizes the General Manager to authorize a contract with lnfor, for the purchase and development of a SCADA integrated asset management solution for an amount not to exceed $380,400. Director stepped out during the presentation at 10:25 a.m. and returned during the presentation at 10:26 a.m. Director asked if this was the $2 million grant. Staff responded that this was the Department of Energy for $2 million. Director asked if the District was going to meet the deadlines. Staff responded that the integrated asset management solution would be completed and installed by October Director requested that the project be presented to the Board at a future meeting. ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote:

10 September 22, 2014 Page 10 SEPTEMBER 22, 2014 ACTION CALENDAR ITEMS 20. REVIEW AND DISCUSSION REGARDING ADDING LANGUAGE TO POLICIES ON BOARD MEETINGS AND AGENDAS RECOMMENDED ACTION: That the Board: 1. Approves and adopts the revised policy for meetings and minutes as written in Exhibit "A"; 2. Direct staff to revise the Meetings and Minutes Policy, Part 2, Chapter 1, Article 4; and 3. Approves, adopts, and authorizes the President to sign Resolution No as amended, "A RESOLUTION OF THE BOARD OF DIRECTORS OF CENTRAL BASIN MUNICIPAL WATER DISTRICT AMENDING THE MEETINGS AND MINUTES POLICY, PART 2, CHAPTER 1, ARTICLE 4 OF THE ADMINISTRATIVE CODE." Director asked if with respect to the meetings and minutes, were there any changes that were going to be made to the manner in which the meetings and minutes were recorded at Central Basin. The Human Resources Manager reported that this was not one of the noted changes in the exhibit and that the only two changes that were being proposed were the ones highlighted in yellow. Director asked if language was included in the policy for Board meetings with respect to the current practice of video recording the meetings and posting them online. She asked if this was something that was going to be integrated into the Board meeting policy. The Human Resources Manager stated that it was not listed as such but if the Board wished to make the change it could be done and then brought back to the Board for approval. Director asked if there were any other Board policies with respect to Board meetings that she [the Human Resources Manager] recommended or came across that were

11 September 22, 2014 Page 11 best practices and not listed in the Board meetings. For example, she mentioned and had requested on numerous occasions, which had never been brought before the Board, that as part of their meetings the Board consider recording their closed session discussions. She asked if this was a best practice for other agencies and if any other agency was doing it. The Human Resources Manager stated that she did some research on the recording of closed session discussions and that she did not find any agencies within the water districts that actually had this [recording closed session] policy. She stated that she reached out to a number of agencies. She also stated that she encountered a number of best practices that could definitely be included moving forward. Director stated that the reason why she asked was because she really thought it was in their best interest, the agency's best interest, to create as much openness and transparency in all that they did, in particular in how they conducted Board meetings. She asked if they could do more than just what was required minimally. She gave an example and stated like live streaming the Board meetings, she thought it was something they should consider doing, or host some of the Board meetings in the evening when members, the residents and members of the community would be able to attend. She also suggested recording their closed session discussions so that whenever there was a question, which there had been a lot of questions and debate over things that were being discussed and decided on in closed session that appeared to be lost once the closed session had concluded and not properly documented by the attorney's. For example, she stated the fact that the $2.7 million were improperly moved out of the District. She stated there had been a lot of discussions about how and why that happened and where there was no documentation to substantiate some of the claims that were being made. She stated she would like them [the Board and staff] to put more of an effort to not just meet minimal requirements for a certificate, but to actually do more than what was required to create more transparency, to create more accurate accounts of records of things that were taking place in closed session and open session.

12 September 22, 2014 Page 12 ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote: 21. BIENNIAL REVIEW OF CONFLICT OF INTEREST AND DISCLOSURE CODE RECOMMENDED ACTION: That the Board approves the revised Conflict of Interest and Disclosure Code pending approval by the County Board of Supervisors. ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote: 22. DEBT ISSUANCE TO RESTRUCTURE 2010A CERTIFICATES OF PARTICIPATION (COP) DEBT SERVICE SCHEDULE RECOMMENDED MOTION: That the Board approves, adopts, and authorizes the President to sign Resolution No , "RESOLUTION OF THE BOARD OF DIRECTORS OF THE CENTRAL BASIN MUNICIPAL WATER DISTRICT AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $12,000,000 REFUNDING REVENUE BONDS AND APPROVING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH AND CERTAIN OTHER MATTERS". Staff provided a brief update on the debt issuance to restructure the 201 OA COPs.

13 September 22, 2014 Page 13 Mr. Robert Parr of Fieldman Rolapp and Associates made a presentation regarding the restructuring of the bonds. ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote: 23. PRESENTATION, DISCUSSION AND APPROVAL OF CONSULTANT FOR EDUCATIONAL PROGRAM WATER WANDERINGS: A JOURNEY THROUGH CALIFORNIA'S WATER (WATER WANDERINGS) RECOMMENDED MOTION: That the Board authorizes the General Manager to enter into an agreement with the Los Angeles Conservation Corps for environmental education services for a total amount not-to-exceed $41,000. ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote: 24. PRESENTATION, DISCUSSION AND APPROVAL OF THE SAN GABRIEL VALLEY PROTECTIVE ASSOCIATION ANNUAL ASSESSMENT EXPENSE RECOMMENDED ACTION: That the Board authorizes the General Manager to pay the assessment expense of $27, to the San Gabriel Valley Protective Association for fiscal year

14 September 22, 2014 Page 14 ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote: 25. WAIVER OF TIER 1 IMPORTED WATER PURCHASE MAXIMUM LIMITS RECOMMENDED ACTION: That the Board: 1. Authorizes the removal of Tier 1 annual maximum limits effective as September 1, 2014 on imported water purchase orders expiring on or before December 31, 2014; and 2. Authorizes the General Manager to execute any necessary amendments on each imported water purchase agreement to waive those same maximum limits. The Board entered into discussions with staff about the possible penalties or fines if the District waived the Tier 1 Imported Water Purchase Maximum Limits. Director stepped out during the presentation at 11 :04 a.m. and returned during the presentation at 11 :05 a.m. ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote:

15 September 22, 2014 Page PRESENTATION, DISCUSSION AND APPROVAL OF RESOLUTION EXPRESSING SUPPORT FOR PROPOSITION 1 - THE WATER QUALITY, SUPPLY AND INFRASTRUCTURE IMPROVEMENT ACT OF 2014 RECOMMENDED ACTION: That the Board approves, adopts and authorizes the President to sign Resolution No , "A RESOLUTION OF THE BOARD OF DIRECTORS OF CENTRAL BASIN MUNICIPAL WATER DISTRICT EXPRESSING SUPPORT FOR PROPOSITION 1 - THE WATER QUALITY, SUPPLY AND INFRASTRUCTURE IMPROVEMENT ACT OF 2014." Director stepped out during the presentation at 11 :09 a.m. and returned during the presentation at 11: 13 a.m. ACTION: Upon a motion duly made by Director was seconded by Director, the Board approved staff recommendation by the following roll call vote: INFORMATION ITEMS Item No. 27 was pulled. Director asked who had pulled Item No. 27 and requested information on the project. 27. PRESENTATION AND DISCUSSION OF THE SOLAR PO'NER GENERATION PROJECT ORAL REPORT 28. PRESENTATION OF THE OUTREACH ACTIVITIES FOR THE MONTH OF AUGUST RAL REPORT Director requested an update on the quality of calls the District receives from residents and business regarding conservation.

16 September 22, 2014 Page PRESENTATION AND DISCUSSION OF THE CAL TRANS 1-5 MAIN RELOCATION CONSTRUCTION IN THE CITY OF DOWNEY Director stepped out during the presentation at 11 :23 a.m. and returned at 11 :27 a.m. during the presentation. Director stated that she had heard there were issues with the Project Labor Agreement and asked what they were. General Manager Perez provided an update on the issue. The Board reviewed Items 28-29; these items were received and filed. COMMENTS 30. GENERAL COUNSEL'S REPORT. None. 31. GENERAL MANAGER'S REPORT ON DISTRICT ACTIVITIES. General Manager Perez reported that the next Central MWD Caucus was scheduled for Wednesday, October 1, and that Ron Davis, Executive Director for CalDesal would provide information on desalination. He stated that Richard Bell, Manager of Water Resources planning for the Municipal Water District of Orange County would also provide an update on their desalination pilot project in South Orange County. Lastly, General Manager Perez thanked the Board for their good work on that day given that it was a very long and complicated agenda. 32. DIRECTORS' COMMENTS. Director stated that she had a request of the lawyer and stated that she had sent an to the attorney, Arnold Glasman, asking a question about how agenda items are placed on the agenda by members of the Board. She asked what the process was. General Manager Perez stated that the question had been posed to Mr. Glasman and that a response had not been received yet. He stated that Mr. Glasman was out of town and was returning on that day or the following day and that as soon as an answer was received, we would get it to her. Director stated that it was her understanding that according to the Administrative Code, the Board members had the right to make a public request at a public meeting for an

17 September 22, 2014 Page 17 item to be agendized. She stated that it was also her understanding that a Board member could contact the chairman and request that the item be agendized and that the other way in which an item could be agendized was for three members of the body to make a request for an item to be agendized. She asked if this was correct and if anyone could answer this. The Human Resources Manager stated she [Director ] was correct. Director stated that he reason she asked this question was because she had, on a number of occasions, asked a whole slue of things be placed on the agenda and they had never been placed on the agenda. She stated that one of them for example was the discussion about why a current Director was driving without license and was still getting car allowance. She stated that she understood that this issue [driving without a license] had been resolved because the Director now had a driver's license, which was great, but it was an issue of concern to many members in the community and she had requested on a number of occasions, not only in a public setting to the General Manager but also to the Chairman of the Board. She asked the Chairman if there was a reason as to why it was never agendized. President stated he did not remember anybody asking for it to be at the Board level. He stated that they usually went through the Committee on all this and then it came to the Board level so if it never went to committee there was a good chance it would not go to the Board. Director stated she had asked him on a number of occasions to place on the agenda and it was never done. Director stated he did not remember any of this. Director stated that another item that she had asked be placed on the agenda was for the Board to have a discussion about whether or not to record closed session discussions. Director stated that this had been done in closed session and it was voted no. Director stated that she asked it be made a public discussion.

18 September 22, 2014 Page 18 Director stated that they had already done it in closed session, why would they do it twice. Director stated that they [the Board] had a Chairman who refused to place items on the agenda that were being requested by the Board, by various members of the Board. She stated that it was her understanding that they were all elected by their respective divisions. She stated that this was not a dictatorship. Director stated he had never received a phone call from a director asking him to put something on the agenda. Director stated she had sent s and that they [the Board] had a right to place items on the agenda, especially when their constituents were requesting that they address very, very critical issues that were before the Board. She stated that this whole issue of them having a special meeting was a prime example. She stated that it was requested that they place on the agenda the evaluation of the General Manager. She stated that they [the Board] were required according to his [the General Manager] contract to evaluate him every year. She stated the Chairman had refused to evaluate him and that was a violation of the contract. She stated they [the Board] were there to protect the entity and that they were there to make sure that the public was being looked out for. She stated that by refusing to abide by a contract of agreement that the agency had signed, it was really placing the agency in jeopardy. She stated that the reason why they ended up posting for a special meeting was because the Chairman refused to allow for the item to be added to the agenda. She stated that they needed to make sure if the Administrative Code was silent on this, then they needed to make sure that there was very clear direction that if three Board members were requesting that an item be placed on the agenda, that it in fact was done. She stated that this was one of the things she wanted to comment on. She stated that the other thing she wanted to comment on and she saw that a gentleman [in the audience] was taking a picture of her. She stated that for the past two months the gentleman who was taking a picture of her had been following her around in his truck and taking pictures of her. She stated that she wanted to make sure that there was a public record of this because she did not know who he was. She stated that she was assuming that he was working with the Los Cerritos Newspaper, Mr. Brian Hews, or if not she did not know who he was but he was

19 September 22, 2014 Page 19 following her taking pictures. She stated she was concerned about her safety because she did not know who the gentleman was and she said she was certainly going to make sure that she followed up with the police and file a report about this. She stated that the next comment she wanted to make was that an article that was written in the Los Cerritos Newspaper that said Central Basin Directors, and once again call meeting to fire General Manager and time and time and time again the local newspaper had continued to write false information about the things that were happening at Central Basin. She stated that they [the Board] were not there to fire Mr. Perez. She stated they were there to evaluate and do their job, unfortunately, they [Los Cerritos News] continued to work with other Board members to print false information. She stated she had on numerous occasions asked that they decline from printing that she was suing the Central Basin. She stated that she was not suing the Central Basin and that she had provided them [Los Cerritos News] a copy of the complaint that proved that she was not suing the Central Basin and again that was just another lie that their newspaper continued to print. She stated that all she was asking them to do was be responsible journalists and abide by professional journalistic standards and print the truth and if they were not printing the truth when a retraction was requested she was asking them to respectfully, Mr. Brian Hews, print the truth. She stated he [Brian Hews] had a responsibility to do that. She stated that she wanted to make sure that she made these comments on the record. She stated that there were a couple of members of the public that were holding up signs and wanted to invite those individuals to come up when they adjourned their other meeting and to express their concerns about whatever they had written on their signs and to put them on the public record. She stated that if they were in fact real residents, real concerned members of the water community, or real concerned members of the 22 cities that they serviced. She stated that they also had another member who worked in collusion with the Los Cerritos Newspaper and that his name was Ron Beilke, otherwise known as Dexter Morgan, who forwarded the newspaper articles to members in the water community with the goal of defaming the agency and the members that sat before them [the audience]. She stated that she thought it was outrageous and that this was the same individual who was convicted on a number of charges of public of interest when he served as the mayor of the City of Pico Rivera. She stated he was an employee of this district for five days and he had filed a fraudulent lawsuit against this agency which they had an obligation

20 September 22, 2014 Page 20 to defend and she just wanted to make sure that there was a record that this man continued to harass and defame the agency and they [the Board] had an obligation to do something about it and said thank you. Director stated that the only comment he had was that the reason he did not allow for the item to be put on the agenda for that day was because it was going to be too late and it would have violated the Brown Act. He stated they went through that once before and they had the problem with the second special and unless it was done right they were violating the Brown Act and he said he did not want to go there again. ADJOURNMENT: There being no further business to come before the Board, President adjourned the meeting at 11 :41 a.m. ACY ~ Df',?vi +~Secret:ry, Y:\centralbasinboard\bodmin\092214cb