MINUTES OF MEETING BOARD OF DIRECTORS, ORANGE COUNTY WATER DISTRICT August 6, 2014, 5:30p.m.

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1 MINUTES OF MEETING BOARD OF DIRECTORS, ORANGE COUNTY WATER DISTRICT August 6, 2014, 5:30p.m. President Dewane called to order the August 6, 2014 regular meeting of the Orange County Water District Board of Directors at 5:30p.m. in the Boardroom at the District office. Following the Pledge of Allegiance to the Flag, the Secretary called the roll and reported a quorum as follows. Directors Philip Anthony Kathryn Barr Denis Bilodeau Shawn Dewane Jan Flory Cathy Green Vincent Sanniento (not present) Stephen Sheldon Harry Sidhu Roger Yoh (arrived 6:13 p.m.) Staff Michael Markus, General Manager Joel Kuperberg, General Counsel Janice Durant, District Secretary Gina Ayala, Stephanie Dosier, Randy Fick, Roy Herndon, Bill Hunt, John Kennedy, Mehul Patel, Audrey Perry, Ben Smith, Michael Wehner, Nira Yamachika Others: Jim Atkinson- Mesa Water District Don Calkins, Pam Galera- City of Anaheim Peer Swan, Paul Weghorst- Irvine Ranch Water District Phil Hawkins -Yorba Linda Water District Brian Ragland- City of Huntington Beach Betsy Eglash- Brady Shalini Varghese- Metrohm USA Rob Hunter, Keith Lyon- Municipal Water District of Orange County Kelly Rowe- Water resources consultant Andrew Jamison, Don Jamison- Jamison Engineering Ed Connor- CFH John Ruetten- RTI Jose Diaz- City of Orange Michael Wellborn- FHBP Anthony Lizzi - EEC Milt Dardis, Dave Hamilton- R4RD John Earl- Surf City Voice Pat Goodman- Huntington Beach resident VISITOR PARTICIPATION Southeast Huntington Beach resident Milt Dardis stressed the need for full disclosure and transparency and urged the Board to video stream meetings. He noted that Poseidon Resources has not completed an application for a separate coastal development permit from the Coastal Commission, and that there is an unresolved administrative appeal of the NPDES Permit issued by the Regional Water Quality Board. Mr. Dardis requested that OCWD make clear to the taxpayers and the State agencies that there is no commitment on the part of any agency to purchase the water from the Poseidon project. Director Sheldon responded that he is always available to meet with the public and requested Mr. Dardis to contact him directly to discuss his concerns.

2 Huntington Beach resident Pat Goodman encouraged the Board to video stream meetings to provide transparency. CONSENT CALENDAR 8/06/14 The Consent Calendar was approved upon motion by Director Green, seconded by Director Anthony and carried [8-0] as follows, with Director Sidhu voting "No: on Item No. 5: Ayes: Anthony, Barr, Bilodeau, Dewane, Flory, Green, Sidhu, Sheldon Noes: Sidhu (Item No. 5) Absent: Sarmiento, Yoh 1. Approval of Cash Disbursements MOTION NO APPROVING CASH DISBURSEMENTS Payment of bills for the period July 10, 2014 through July 30, 2014 in the total amount of $8,231, is ratified and approved. 2. Approval of Minutes of Board of Directors Meetings MINUTES APPROVING MINUTES OF BOARD MEETINGS The minutes of the Board of Directors meeting held July 2, 2014 are hereby approved as presented. 3. Contract GBM Change Order and Amendment to Agreement 0974 with Hargis+ Associates: East Newport Mesa Groundwater Investigation Monitoring Well Installation Project RESOLUTION NO APPROVING/RATIFYING ISSUANCE OF CHANGE ORDERS TO CONTRACT GBM-20I4-I, AND AUTHORIZING AMENDMENT TO AGREEMENT WITH HARGIS+ ASSOCIATES FOR ADDITIONAL FIELD INSPECTION SERVICES WHEREAS, pursuant to Resolution No adopted June 18, 2014, OCWD awarded Contract No. GBM , East Newport Mesa Groundwater Investigation Monitoring Well Installation Project, to Beks Acquisition, Inc. dba BC2 Environmental; and WHEREAS, the District staff has recommended issuance of Change Order No.1 to such Contract in the amount of $62,274 for the addition of a fourth well and a caliper survey; and WHEREAS, pursuant to Resolution No adopted March 19, 2014, OCWD issued Agreement No to Hargis+ Associates, Inc. for an amount not to exceed $85,904 for field inspection services during the East Newport Mesa monitoring well construction and irrigation well conversion; and WHEREAS, the District staff has recommended issuance of Amendment No. 1 to such Agreement with Hargis +Associates in the amount of $13,000 for additional field inspection services associated with the aforementioned Change Order No. 1; 2

3 NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby resolve as follows: Section 1: issuance of Change Order No.1 to Contract GBM in the amount of $62,274 is authorized. Section 2: Issuance of Amendment No. 1 to Agreement No with Hargis + Associates is authorized in the amount of $13,000 for additional field inspection services. CONSENT CALENDAR ITEMS RECOMMENDED FOR APPROVAL AT PROPERTY MANAGEMENT COMMITTEE MEETING HELD JULY Amendment 3 to Access Pennit with Water Replenishment District of Southern California RESOLUTION NO AUTHORZING AMENDMENT TO ACCESS PERMIT WITH WRDSC FOR COLLECTION OF WATER SAMPLES FROM SEAL BEACH MONITORING WELLS WHEREAS, pursuant to Resolution No adopted August 18, 1999, as amended, OCWD issued an Access Permit to the Water Replenishment District of Southern California (WRDSC) to collect water samples at OCWD Monitoring Wells in the Seal Beach area to satisfy the monitoring requirements of the WRDSC Alamitos Barrier Recycled Water Project; and WHEREAS, the Property Management Committee of this Board has presented and recommended issuance of Amendment Three to such Permit with WRDSC extending the permit expiration date to August 31, 2019 for continued collection of water samples from such Seal Beach monitoring wells (OCWD-34Ll 0, OCWD-34N21, and OCWD-U8) to satisfy regulatory monitoring requirements; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby approve Amendment Three to the Access Pennit with WRDSC as hereinabove set forth, and, upon approval as to form by District General Counsel, its execution by the District officers is authorized. 5. Status of General Plan Amendment and Zone Change for Ball Road Basin Property MOTION NO DIRECTING STAFF TO TRANSMIT A LETTER TO ANAHEIM ADVISING THAT OCWD IS SUSPENDING EFFORTS ON GENERAL PLAN AMENDMENT AND ZONE CHANGE FOR THE BALL ROAD BASIN PROPERTY Staff is hereby directed to transmit a letter to the City of Anaheim regarding the following issues: 1) OCWD is suspending efforts on changing the General Plan and zoning to Commercial for the Ball Road Basin property, and the supporting Environmental Impact Report, until it is determined if Orange County Energy Park, LLC will move forward with a power plant; and 2) OCWD requests that the City of Anaheim suspend further actions to change the General Plan and zoning of Ball Road Basin property to allow park and recreation uses, including California Environmental Quality Act processing. 3

4 6. Groundwater Replenishment System Pipeline Inspection Principal Hydrogeologist John Bonsangue reported that due to construction of the GWRS Initial Expansion, the GWRS plant was recently shut down for 21 days which provided an opportunity for a comprehensive inspection of the entire GWRS pipeline by staff and Jamison Engineering. He updated the Board on the results of the inspection, stating that minor imperfections were found in the surface of the mortar lining which have been collected and analyzed. He further advised that additional areas were found with thinning of the mortar lining and surface areas of exposed steel. Mr. Bonsangue reported that while mortar loss was observed in some locations, the steel appears to be in good condition, and that the loss of mortar does not compromise the integrity of the pipeline structure. He also reported that a red coating was found to cover approximately 80% of the pipeline interior, samples of which were collected every mile and submitted to the OCWD Research Laboratory for analysis. He noted it appears to be mostly inorganic and comprised of iron and silica. Mr. Bonsangue stated that staff directed Jamison Engineering to make the necessary mortar lining repairs at a cost of $55, during the shutdown period as the work had to be quickly completed to get the GWRS treatment plant back online. Mr. Markus stated that staff is following up with the pipeline manufacturer to determine the cause of the lining failure. After discussion, the following action was taken. Upon motion by Director Anthony, duly seconded, the following resolution was unanimously adopted [8-0]. Ayes: Anthony, Barr, Bilodeau, Dewane, Flory, Green, Sheldon, Sidhu Absent: Sanniento, Y oh RESOLUTION NO RATIFYING AMENDMENT TO AGREEMENT WITH JAMISON ENGINEERING FOR GWRS PIPELINE INSPECTION COSTS WHEREAS, pursuant to Resolution No adopted May 21, 2014, OCWD issued an agreement to Jamison Engineering Contractors, Inc. for GWRS inspection services; and WHEREAS, staffhas advised of issuance of Amendment No. 1 to such contract for necessary repairs to the GWRS pipeline at a cost of $55,900.72; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby ratify issuance of Amendment No. 1 to the aforementioned Agreement as outlined herein. Director Yoh arrived at 6: 13 p.m. during discussion of the following item. 7. Proposed Assembly Bill 2712 (Daly) Fountain Valley resident Michael Wellborn stressed the importance of not weakening efforts to protect Orange County's groundwater and advised that he attended the Assembly Hearing in Sacramento on July 29 for AB He expressed concern over the business community in Orange County interfering with the manner in which OCWD deals with groundwater pollution, and stated he was pleased that Assemblymember Daly had amended the Bill to make it more practicable and acceptable to OCWD. 4

5 General Manager Markus stated that a revision to the Bill as contained in the packet was distributed prior to tonight's meeting, noting that the word "substantially" was stricken from Section 8 (d) of the Bill. He reviewed the history of the Bill and stated the Bill removes NCP compliance from certain types of cleanup projects but agrees with the concept ofncp compliance which was the intent of the original Bill. He stated staff believes the Bill does not harm OCWD and recommends approval, noting it is scheduled to go to Appropriations next week and could go to a vote of the Senate floor by August 21. General Counsel Kuperberg recommended that should the Board determine to move forward with the staff recommendation to support the motion it should contain specific wording to support the Bill as presented this evening, noting it is not clear yet whether the District's other changes have been fully incorporated into the formal Bill. Orange County Business Council (OCBC) representative Brian Starr thanked the Board and General Manager Markus for their efforts with this Bill. He stated it accomplishes the goals of the Business Counsel and presents a clear process for contamination cleanup. Mr. Starr advised that as a sponsor of the Bill, OCBC would communicate to the Bill's author that OCBC has no objections to OCWD's proposed changes. Director Sheldon stated that approval of this Bill is a major policy change to the business community, noting that the attorneys OCWD has previously used in groundwater contamination lawsuits have been motivated by contingency fees rather than the benefits of the contamination cleanup. MOTION NO ADOPTING POSITION OF SUPPORT ON ASSEMBLY BILL 2712 (DALY) AS MODIFIED Upon motion by Director Anthony, seconded by Director Flory and carried [9-0], a position of "Support" is hereby adopted on Assembly Bill 2712 (Daly) as presented and modified this evening. Ayes: Anthony, Barr, Bilodeau, Dewane, Flory, Green, Sheldon, Sidhu, Yoh Absent: Sarmiento 8. Groundwater Quality Protection Policy Mr. Markus pointed out that a revised Groundwater Protection Policy document had been distributed for Board review, noting that after meeting with OCBC, the District agreed to the revised language change in bullet point No. 7. He recommended adoption of the Policy, noting it provides a roadmap for handling future contamination cases. Director Green requested assurances that the Policy contains exceptions for emergencies and requested it be called out to make it clearer. Director Sidhu questioned whether the Groundwater Producers (GWP) had been given a chance to review this Policy. Mr. Markus responded that due to the urgency to get the policy drafted, it has not yet been presented to the GWP. He recalled that Assembly Bill 2712 required the Board to adopt a contamination policy; therefore staff developed the policy and presented it to the OCBC. Mr. Markus stated that Brian Starr agreed that if OCWD approved the Policy prior to a vote on the Bill, the language in the preamble of the Bill would be removed. He then stated the GWP are aware of the Policy and he has heard no objections. Mr. Starr confirmed that the OCBC has reviewed the Policy and that they recommend adoption by the Board. Director Sheldon urged the Board to implement the Policy immediately with the defendants in the South Basin litigation to detennine which cases could be potentially settled. He suggested fonnation of an ad hoc Committee on existing cases. 5

6 Upon motion by Director Anthony, seconded by Director Sheldon, the following resolution was unanimously adopted [9-0]. Ayes: Anthony, Barr, Bilodeau, Dewane, Flory, Green, Sheldon, Sidhu, Yoh Absent: Sarmiento RESOLUTION NO ADOPTING NEW GROUNDWATER QUALITY PROTECTION POLICY 8/06/14 WHEREAS, the OCWD Board deems it is in the best interests of the District to adopt an updated Groundwater Protection Policy that is consistent with the District's mission to protect and enhance the quality of the OCWD b'toundwater basin; and WHEREAS, such proposed policy incorporates and integrates key provisions contained in previous related polices adopted in 1984, 1987, and 2013 into a single policy and includes a provision regarding consistency with the National Contingency Plan in situations where the District is seeking cost recovery from responsible parties; NOW, THEREFORE, the Board of Directors ofthe Orange County Water District does hereby adopt the Groundwater Quality Protection Policy as follows: ORANGE COUNTY WATER GROUNDWATER QUALITY PROTECTION POLICY Consistent with the District's mission and authority granted under the Orange County Water District Act and other provisions of law, it is the objective of this policy (the "Policy'') to provide guidance to the District in taking actions to protect groundwaterfrom discharges or releases of Hazardous Materials or contamination that damage or threaten water quality in the aqu(fers and facilities that serve the District. I. Maintain a groundwater supp~v ofsuitable quality.for all existing and potential beneficial uses. 2. Prevent degradation ofthe quality of the groundwater supply and protect groundwaterfrom Hazardous Materials and contamination. 3. Provide notice to, confer, and cooperate with applicable regulatory agencies to ident(fy sources of contamination and threats to sur_face water and groundwater caused by releases of Hazardous Materials, to characterize the extent of such contamination, and develop and implement effective emergency, removal, and remedial measures as shall be appropriate, in accordance with applicable standards and requirements. 4. Support regulatory enforcement o,{'investigation and cleanup requirements on responsible parties in accordance with lmv. 5. Undertake investigation and cleanup projects as necessary to protect the groundwater supplies o,(the basin from contamination and Hazardous Materials. 6

7 6. In matters in which the District is seeking recovery of its investigation and response costs, to be consistent with requirements ofthc National Oil and Hazardous Substances Pollution Contingency Plan (National Contingency Plan), 40 Code offcdcral Regulations Parts , and other applicable provisions of lmv. 7. In instances in which releases of Hazardous Materials have been detected, except as othcnvise may be necessary or appropriate in the event prompt emergency action is needed to prevent, abate, or contain any threatened or existing contamination ofor pollution to surface water or groundwater, the District v.. ill propose to meet and confer with any owner or operator responsible for such contamination or pollution, and any administering agency with oversight responsibility thereof,' and to cooperate on exchanges ofinformation and data, planning and implementing appropriate protective measures, and the containment and remediation o_fsuch contamination or pollution. Where the owner or operator arc known, an effort initially shall be made, to the extent practicable, to meet and confer, participate in data and information exchanges and planning activities, and determine whether the owner or operator can and will perform the ncccssa1y action propcrzv and in a timely manner, prior to or concurrently with formulation o.fa groundwater clean-up project. 8. Prior to initiating legal action for cleanup and abatement o.f contamination or pollution or to recover the District's costs for investigation, response, and remediation o.f surface 1-vater or groundv.. ater contamination, the District v.. ill propose to any owner or operator responsible for such contamination that the parties enter into an agreement to mediate in goodfaith to attempt to resolve the matter without litigation. The proposed agreement would include the following elements: That the District and the responsible party agree upon a suitable and qual(fied third party mediator such as JAMS or other appropriate party experienced in environmental contamination matters, with the cost of the mediation to be equally shared. That the District and responsible par~y exchange all relevant, and reasonabzv requested information regarding the dispute; and the responsible party provide the District with access to defendant's records relating to the dispute for review and copying, provide information regarding the defendant's insurance, and allow the District to conduct soil and groundwater test on the property. That all statements, o.ffcrs, demands, negotiations, and other communications made or exchanged in the mediation process shall be treated as confidential and shall not be admissible in any litigation involving any o_(the parties, in accordance with applicable Cal!fornia and Federal law; such confidentiality shall not be applicable to facts obtained by the parties in discovery or,lrom third par~y sources outside o_fthe mediation. That the parties toll all applicable statues o_f'/imitationsfor up to I 80 days to allow the mediation process to go forward. This time period may be extended by agreement!f progress is being shown and additional time is reasonabzv required to complete the mediation process. 7

8 Provided the responsible party enters into an agreement to mediate on the terms outlined herein, the Board of Directors shall appoint a subcommittee or member of the Board to participate in the mediation and report to thefitll Board. Any settlement offers made by the responsible party shall be presented to thcfitll Board in closed session.!(the responsible parzv declines to enter into an agreement to mediate on the terms outlined herein, or enters into such agreement but the matter is not resolved during the mediation period, the District may initiate litigation against the responsible party. 9. The District shall establish imprm cmcntfimds (''GroundM atcr Contamination Cleanup Fund") pursuant to Section 20 of the District Act to hold and invest any and all proceeds that the District receives from the trial or settlement of lawsuits to recover the District's costs to abate, rcmediatc, and clean up threatened or actual groundwater contamination. A separate restricted Groundwater Contamination Cleanup Fund shall be cstablishedfor each groundv~ atcr contamination case for 111 hich the District receives such moneys. The monies in the Groundwater Contamination Cleanup Funds shall be invested in accordance with the California Government Code and, net oflitigation expenses, shall be used onlyfor the current orfitturc projects and activities to abate, rcmcdiatc, or clean up the groundwater contamination for which the Groundwater Cleanup Fund ~vas established. 10. Maintain the District's swfacc water and groundwater quality monitoring program and monitoring well ncnvork, the purposes o.{which arc to: Assess ambient water quality conditions and determine trends in water quality, including surface water supplies uscdfor recharge into the groundwater basin. 1dcnt[fY areas where groundwater uscd.for public supply is vulnerable to or threatened by contamination. Evaluate the effectiveness o.fprograms, projects, and regulations intended to protect groundwater quality, and recommend additional measures as appropriate. Provide water quality information to tmtcr purveyors and applicable regulatory agencies. 11. Maintain the District's Water Resources Management System, including databases, geographic information ::,ystcm, and computer models, to support c_fficicnt storage, accessibility, analysis, presentation, and reporting o,{watcr quality and water resources information. 12. Maintain an Emergency Response Fund (formerly known as the Toxic Reserve Account) in order to ensure adequatefimds arc ami/able to contain and clean up catastrophic releases o.l chemicals or other substances that may contaminate the swfacc water or groundwater o.fthc basin. 13. Coordinate with groundwater producer(s) impacted or threatened by any groundwater contamination in their service territory and work with affected producer(s) in the development o.f an appropriate monitoring and remediation plan!{neccssmy. 8

9 14. Encourage the beneficial usc and appropriate treatment o.f'poor-quality groundwater where the usc o.lsuch groundwater will reduce the risk o.f'impact to additional production wells, increase the operational yield o.lthc basin, and/or provide additional water quality improvements to the basin. The overall merit o.feach potential project will be evaluated individually based on estimated benefits and costs. 15. This Policy supersedes the following District policies: Groundwater Protection and Sanitary Landfill Management Policy adopted June 20, 1984 (Resolution ); Groundwater Quality Protection Policy adopted May 6, 1987 (Resolution ); and policies regarding Pre-Litigation Mediation Procedure and Segregation and Usc a./groundwater Contamination Litigation Proccedsfor Future Cleanup Projects adopted May 22, 2013 (Resolution No ). 16. This Policy shall not be interpreted to impose any new or additional requirements on claims or legal actions pending at the time ofadoption of' this policy. 9. South Basin Groundwater Protection Project- NCP Consulting Services for Completing Remedial Investigation and Feasibility Study- Request for Proposal (RFP) Principal Hydrogeologist Dave Bolin recalled that the District is investigating groundwater contamination and evaluating remedial options in the South Basin area where contaminants have reached two production wells. As is being done to address contamination in the North Basin area, he recommended the approach for South Basin be consistent with the National Contingency Plan (NCP). To proceed with developing a remedy for the South Basin contamination, he stated staff recommends retaining a qualified consultant to perform remedial investigation and feasibility study tasks and prepare necessary NCP documentation. Director Sheldon suggested these efforts be delayed a month to reach out to the Groundwater Producers (GWP), noting the contaminant plume is dominantly within the city boundaries of Santa Ana and Irvine, and to a lesser extent, in Tustin. He suggested a collaborative approach with the Irvine Ranch Water District (IRWD) and the City of Santa Ana. Director Dewane stressed that the Groundwater Protection Policy adopted tonight requires outreach with the GWP prior to proceeding with the process and suggested staff issue the RFP concurrently with GWP outreach efforts to get a strong consensus before OCWD proceeds along this path. General Manager Markus stated he intends to discuss these issues with the GWP at next week's meeting. IRWD Director Peer Swan was asked ifirwd had taken an official position. Mr. Swan responded that historically OCWD has taken on the role of groundwater cleanup of contamination. He stated that the policy adopted tonight provides for a consultation period and indicated he feels that is the appropriate time to bring other people in and that IRWD would be happy to participate in conversations. He further stated that Mesa Water District may ultimately be affected, along with the City of Santa Ana and perhaps other parties also. Director Sheldon stated he is supportive of staffs recommendation but requested that staff meet with the appropriate General Managers of IR WD, Mesa Water District, and the City of Santa Ana and have a more direct conversation about a collaborative process. The following action was then taken. 9

10 MOTION NO APPROVING DEVELOPING REMEDIAL STRATEGIES FOR THE SOUTH BASIN GROUNDWATER CONTAMINATION IN A MANNER THAT IS CONSISTENT WITH NCP, AND AUTHORIZING ISSUANCE OF RFP TO RETAIN NCP CONSULTING SERVICES FOR REMEDIAL INVESTIGATION AND EVALUATION OF REMEDIAL ALTERNATIVES IN THE SOUTH BASIN AREA CONSISTENT WITH NCP PROTOCOL Upon motion by Director Anthony, seconded by Director Dewane and carried [9-0], development of remedial strategies for the South Basin b,tfoundwater contamination in a manner that is consistent with the National Oil and Hazardous Substances Pollution Contingency Plan (NCP) is hereby approved; and issuance of a Request for Proposals (RFP) is authorized to retain NCP consulting services to assist staff in completing the remedial investigation and conducting an evaluation of remedial alternatives in the South Basin area consistent with NCP protocol. Ayes: Anthony, Barr, Bilodeau, Dewane, Flory, Green, Sheldon, Sidhu, Yoh Absent: Sanniento 10. Proposed Senate Bill 1390 (Correa) General Manager Markus recalled that the District previously took a "watch" position on proposed Senate Bill 1390 to create a Santa Ana River Conservancy. He stated that based upon recent meetings with Senator Correa, staffbelieves the Bill is no threat to OCWD and a support position is now recommended. Director Green noted that both the Santa Ana Watershed Project Authority and the Association of California Water Agencies are taking a "watch" position on this Bill, stating there is no reason to change the District's position at this time, noting that every Conservancy created also creates more commitments for Bond money. A discussion took place regarding the language in the Bill regarding the Conservancy's right of first refusal on surplussed land. General Counsel Kuperberg stated that the language is ambiguous but that one interpretation would be that OCWD would be required to offer the property to the Conservancy first. Director Sheldon expressed concern that the language gives the Conservancy an additional right in the surplussing ofocwd land. Staff was directed to clarify the Board's inquiries through legislative counsel as to exactly what the "Right of First Refusal" in the Bill means. Director Sheldon commented for the record that he believes the Conservancy will create problems for the District in the future. The Board then took the following action. MOTION NO ADOPTING POSITION OF SUPPORT ON SENATE BILL 1390 (CORREA) Upon motion by Director Anthony, seconded by Director Dewane and carried [8-1] with Director Green voting "No," OCWD hereby adopts a position of support on Senate Bill 1390 (Correa). Ayes: Anthony, Barr, Bilodeau, Dewane, Flory, Sheldon, Sidhu, Yoh Noes: Green Absent: Sanniento 10

11 IN FORMA TlONAL ITEMS Committee Reports The Board reported on attendance at the following Committee meetings and noted the Minutes/ Action Agendas were included in tonight's Board packet. July 14- GWRS Steering Committee July 23- OCWD/IRWD Joint Planning Committee July 25- Property Management Committee 8. VERBAL REPORTS Director Dewane advised that he and Mr. Markus hosted a GWRS tour for the U.S. Army Quartennasters on Saturday, August 2. General Manager Markus advised that he will attend a frocking ceremony for Colonel Mark Toy who is being promoted to Brigadier General on Friday, August 15. Director Sheldon suggested President Dewane appoint an ad hoc committee to look at the South Basin lawsuits, stating that he and Director Sarmiento are interested in serving on this committee. ADJOURN TO CLOSED SESSION The Board adjourned to Closed Session at 7:25p.m. as follows: CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION [Paragraph (1) of subdivision (d) of Section ]: Two (2) Cases: 1) OCWD v. Northrop Corporation, eta! (North Basin VOC Litigation) Superior Court Case No. 04CC ) OCWD v. Sabic Innovative Plastics, LLC eta! (South Basin Litigation) Superior Court Case No. 03CC RECONVENE IN OPEN SESSION The Board reconvened in Open Session at 8:30p.m. whereupon General Counsel Kuperberg announced that the Board took the following action in Closed Session. RESOLUTION NO. CS AUTHORIZING FILING OF AN APPEAL OF OCWD V NORTHROP CORPORATION, ET AL (NORTH BASIN VOC LITIGATION) Ayes: Anthony, Barr, Bilodeau, Dewane, Flory, Green, Yoh Noes: Sheldon Absent: Sanniento, Sidhu [Approved 7-1] 11

12 ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 8:30p.m. Durant, Distnct Secretary Shawn Dewane, President 12