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Manteca
,
California
January 8, 2008
The Board of Directors of the South San Joaquin Irrigation
District met in their chambers at the hour of 9:00 a.m.
Upon roll call the following members were noted present:
DIRECTORS:
HOLBROOK
KAMPER
KUIL
ROOS
ABSENT
SCHULZ
Also present were Secretary/Manager Shields, District
Counsel
Emrick
, District Engineer Gilton, Communications Coordinator Sayler and Water Treat
me
nt Manager Hubkey.
President Kuil called the meeting to order and asked for
public comment. There being
none he asked the Board to consider approving the Consent Calendar items as
presented.
CONSENT CALENDAR
A.
SSJID
warrants of $2,372,125.12 and payrolls of $348,344.07.
B.
Regular Board Meeting Minutes of December 11, 2007.
C.
Adoption of 2008 Investment Policy.
RESOLUTION NO.
08-01-F
SOUTH SAN
JOAQUIN IRRIGATION DISTRICT
INVESTMENT
POLICY
I.
Statement of Purpose:
This Policy is to provide direction for the investments of
funds which are directly managed by the District and establish reporting
procedures for all investments for oversight review.
The District treasurer is delegated the responsibility to invest and
reinvest District funds and to sell or exchange District securities and to make
periodic reports to the Board of Directors in accordance with this Investment
Policy.
II.
Investment
Objectives:
The following are the objectives of the District=s
investment policy, in order of priority:
A.
The primary investment objective is safety: It is the primary duty and
responsibility of all persons directing investments to protect, preserve and
maintain the principal from any loss by mitigating the two types of risk: credit
risk and market risk.
B.
The secondary investment objective is liquidity: An adequate amount will
be maintained in liquid short terms securities which can be converted to cash as
necessary to meet disbursement requirements.
C.
The third investment objective is yield: Yield will be considered only
after the basic requirements of safety and liquidity have been met.
III.
Delegation
of Authority and Investment Guidelines and Restrictions:
A.
District’s funds shall be managed in a manner consistent with this
Policy.
B.
The Treasurer is delegated the authority to invest or to reinvest the
District’s funds and to sell or exchange securities in accordance with this
Policy until the delegation of authority is revoked or expires.
C.
General Guidelines:
1.
The Treasurer will develop and
maintain a cash flow analysis for the projection of needed funds.
2.
The Treasurer is authorized to
invest that portion of or all of the District’s funds not required for
immediate use in the Local Agency Investment Fund (LAIF) and the investments
authorized in this Policy, subject to such limitations as may be imposed by the
Finance Committee or the Board of Directors.
The Treasurer is authorized to utilize Crocker Securities LLC or such
other licensed investment advisor as may be authorized by the Finance Committee
or the Board of Directors, to invest the District’s funds not required for
immediate use.
3.
When banking transactions involve
sums of money greater than $100,000, the Treasurer shall take such steps to
insure the depository bank maintains sufficient securities for the deposits as
set forth in California Government Code section 53652.
It is intended that bank deposits and balances in excess of $100,000 are
for short duration, e.g. 2 to 3 days before disbursements or transfers out are
made. The Treasurer is authorized to waive security for deposits up to the
amount that is insured by federal law, in the manner authorized by Government
Code section 53653.
D.
The following additional guidelines and restrictions shall be followed
by the Treasurer when making investments:
1.
All funds invested on behalf of
the District will be managed to meet the requirements in Chapter 4 of Part 1,
Division 2, Title 5 of the California Government Code, commencing with Section
53600 et seq., and this Policy.
2.
The legal, final maturity of any
single security within the portfolio will not exceed 5 years at purchase, with
maturities laddered to protect against market swings.
3.
The Weighted Average Life of the
portfolio will not exceed 3 years.
E.
The following are permitted investments:
Permitted invest
me
nts under this policy are all invest
me
nts authorized by California Govern
me
nt Code Section 53601, as a
me
nded from ti
me
to ti
me
, subject to the applicable limitations in that section and the other sections
in Articles 1 and 2, of Chapter 4, Part 1, Division 2, Title 5 of the California
Govern
me
nt Code. The invest
me
nts permitted by California Govern
me
nt Code section 53601 are enu
me
rated below:
(a) Bonds issued by the local agency, including bonds
payable solely out of the revenues from a revenue-producing property owned,
controlled, or operated by the local agency or by a depart
me
nt, board, agency, or authority of the local agency.
(b) United States Treasury notes, bonds, bills, or certificates of
indebtedness, or those for which the faith and credit of the
United States
are pledged for the pay
me
nt of principal and interest.
(c) Registered state warrants or treasury notes or bonds of this
state, including bonds payable solely out of the revenues from a
revenue-producing property owned, controlled, or operated by the state or by a
depart
me
nt, board, agency, or authority of the state.
(d) Registered treasury notes or bonds of any of the other 49
United States
in addition to
California
, including bonds payable solely out of the revenues from a revenue-producing
property owned, controlled, or operated by a state or by a depart
me
nt, board, agency, or authority of any of the other 49
United States
, in addition to
California
.
(e)
Bonds, notes, warrants, or other evidences of indebtedness of any local
agency within this state, including bonds payable solely out of the revenues
from a revenue-producing property owned, controlled, or operated by the local
agency, or by a depart
me
nt, board, agency, or authority of the local agency.
(f) Federal agency or
United States
govern
me
nt-sponsored enterprise obligations, participations, or other instru
me
nts, including those issued by or fully guaranteed as to principal and interest
by federal agencies or
United States
govern
me
nt-sponsored enterprises.
(g) Bankers acceptances otherwise known as bills of exchange or ti
me
drafts that are drawn on and accepted by a com
me
rcial bank. Purchases of banker’s acceptances may not exceed 180 days'
maturity or 40 percent of the agency's money that may be invested pursuant to
this section. However, no more than 30 percent of the agency's money may be
invested in the banker’s acceptances of any one com
me
rcial bank pursuant to this section.
This subdivision does not preclude a municipal utility
district from investing any money in its treasury in any manner authorized by
the Municipal Utility District Act (Division 6 (com
me
ncing with Section
11501) of the Public Utilities Code).
(h) Com
me
rcial paper of "pri
me
" quality of the highest ranking or of the highest letter and number rating
as provided for by a nationally recognized statistical-rating organization (NRSRO).
The entity that issues the com
me
rcial paper shall
me
et all of the following conditions in either paragraph (1) or paragraph (2):
(1) The entity
me
ets the following criteria:
(A) Is organized and operating in the United
States as a general corporation.
(B) Has total assets in excess of five
hundred million dollars ($500,000,000).
(C) Has debt other than com
me
rcial paper, if any, that is rated "A" or higher by a nationally
recognized statistical-rating organization (NRSRO).
(2) The entity
me
ets the following criteria:
(A) Is organized within the
United States
as a special purpose corporation, trust, or limited liability company.
(B) Has program wide credit enhance
me
nts including, but not limited to, overcollateralization, letters of credit, or
surety bond.
(C) Has com
me
rcial paper that is rated "A-1" or higher, or the equivalent, by a
nationally recognized statistical-rating organization (NRSRO).
Eligible com
me
rcial paper shall have a maximum maturity of 270 days or less. Local agencies,
other than counties or a city and county, may invest no more than 25 percent of
their money in eligible com
me
rcial paper. Local agencies, other than counties or a city and county, may
purchase no more than 10 percent of the outstanding com
me
rcial paper of any single issuer. Counties or a city and county may invest in
com
me
rcial paper pursuant to the concentration limits in subdivision (a) of Section
53635.
(i) Negotiable certificates of deposit issued by a nationally or
state-chartered bank, a savings association or a federal association (as defined
by Section
5102 of the Financial Code), a state or federal credit union, or by a
state-licensed branch of a foreign bank. Purchases of negotiable certificates of
deposit may not exceed 30 percent of the agency's money which may be invested
pursuant to this section. For purposes of this section, negotiable certificates
of deposit do not co
me
within Article 2 (com
me
ncing with Section 53630), except that the amount so invested shall be subject
to the limitations of Section 53638. The legislative body of a local agency and
the treasurer or other official of the local agency having legal custody of the
money are prohibited from investing local agency funds, or funds in the custody
of the local agency, in negotiable certificates of deposit issued by a state or
federal credit union if a
me
mber of the legislative body of the local agency, or any person with invest
me
nt decision-making authority in the administrative office manager's office,
budget office, auditor-controller's office, or treasurer's office of the local
agency also serves on the board of directors, or any committee appointed by the
board of directors, or the credit committee or the supervisory committee of the
state or federal credit union issuing the negotiable certificates of deposit.
(j)
(1) Invest
me
nts in repurchase agree
me
nts or reverse repurchase agree
me
nts or securities lending agree
me
nts of any securities authorized by this section, as long as the agree
me
nts are subject to this subdivision, including the delivery require
me
nts specified in this section.
(2) Invest
me
nts in repurchase agree
me
nts may be made, on any invest
me
nt authorized in this section, when the term of the agree
me
nt does not exceed one year. The market value of securities that underlay a
repurchase agree
me
nt shall be valued at 102 percent or greater of the funds borrowed against those
securities and the value shall be adjusted no less than quarterly. Since the
market value of the underlying securities is subject to daily market
fluctuations, the invest
me
nts in repurchase agree
me
nts shall be in compliance if the value of the underlying securities is brought
back up to 102 percent no later than the next business day.
(3) Reverse repurchase agree
me
nts or securities lending agree
me
nts may be utilized only when all of the following conditions are
me
t:
(A) The security to be sold on reverse
repurchase agree
me
nt or securities lending agree
me
nt has been owned and fully paid for by the local agency for a minimum of 30
days prior to sale.
(B) The total of all reverse repurchase agree
me
nts and securities lending agree
me
nts on invest
me
nts owned by the local agency does not exceed 20 percent of the base value of
the portfolio.
(C) The agree
me
nt does not exceed a term of 92 days, unless the agree
me
nt includes a written codicil guaranteeing a minimum earning or spread for the
entire period between the sale of a security using a reverse repurchase agree
me
nt or securities lending agree
me
nt and the final maturity date of the sa
me
security.
(D) Funds obtained or funds within the pool
of an equivalent amount to that obtained from selling a security to a
counterparty by way of a reverse repurchase agree
me
nt or securities lending agree
me
nt shall not be used to purchase another security with a maturity longer than 92
days from the initial settle
me
nt date of the reverse repurchase agree
me
nt or securities lending agree
me
nt, unless the reverse repurchase agree
me
nt or securities lending agree
me
nt includes a written codicil guaranteeing a minimum earning or spread for the
entire period between the sale of a security using a reverse repurchase agree
me
nt or securities lending agree
me
nt and the final maturity date of the sa
me
security.
(4)
(A) Invest
me
nts in reverse repurchase agree
me
nts, securities lending agree
me
nts, or similar invest
me
nts in which the local agency sells securities prior to purchase with a
simultaneous agree
me
nt to repurchase the security may only be made upon prior approval of the
governing body of the local agency and shall only be made with primary dealers
of the Federal Reserve Bank of New York or with a nationally or state-chartered
bank that has or has had a significant banking relationship with a local agency.
(B) For purposes of this chapter,
"significant banking relationship"
me
ans any of the following activities of a bank:
(i) Involve
me
nt in the creation, sale, purchase, or retire
me
nt of a local agency's bonds, warrants, notes, or other evidence of
indebtedness.
(ii) Financing of a local
agency's activities.
(iii) Acceptance of a local
agency's securities or funds as deposits.
(5)
(A) "Repurchase agree
me
nt"
me
ans a purchase of securities by the local agency pursuant to an agree
me
nt by which the counterparty seller will repurchase the securities on or before
a specified date and for a specified amount and the counterparty will deliver
the underlying securities to the local agency by book entry, physical delivery,
or by third-party custodial agree
me
nt. The transfer of underlying securities to the counterparty bank's custo
me
r book-entry account may be used for book-entry delivery.
(B) "Securities," for purpose of
repurchase under this subdivision,
me
ans securities of the sa
me
issuer, description, issue date, and maturity.
(C) "Reverse repurchase agree
me
nt"
me
ans a sale of securities by the local agency pursuant to an agree
me
nt by which the local agency will repurchase the securities on or before a
specified date and includes other comparable agree
me
nts.
(D) "Securities lending agree
me
nt"
me
ans an agree
me
nt under which a local agency agrees to transfer securities to a borrower who,
in turn, agrees to provide collateral to the local agency. During the term of
the agree
me
nt, both the securities and the collateral are held by a third party. At the
conclusion of the agree
me
nt, the securities are transferred back to the local agency in return for the
collateral.
(E) For purposes of this section, the base
value of the local agency's pool portfolio shall be that dollar amount obtained
by totaling all cash balances placed in the pool by all pool participants,
excluding any amounts obtained through selling securities by way of reverse
repurchase agree
me
nts, securities lending agree
me
nts, or other similar borrowing
me
thods.
(F) For purposes of this section, the spread
is the difference between the cost of funds obtained using the reverse
repurchase agree
me
nt and the earnings obtained on the reinvest
me
nt of the funds.
(k) Medium-term notes, defined as all corporate and depository
institution debt securities with a maximum remaining maturity of five years or
less, issued by corporations organized and operating within the United States or
by depository institutions licensed by the United States or any state and
operating within the United States. Notes eligible for invest
me
nt under this subdivision shall be rated "A" or better by a nationally
recognized rating service. Purchases of
me
dium-term notes shall not include other instru
me
nts authorized by this section and may not exceed 30 percent of the agency's
money that may be invested pursuant to this section.
(l)
(1) Shares of beneficial interest issued by diversified
manage
me
nt companies that invest in the securities and obligations as authorized by
subdivisions (a) to (j), inclusive, or subdivisions (m) or (n) and that comply
with the invest
me
nt restrictions of this article and Article 2 (com
me
ncing with Section 53630). However, notwithstanding these restrictions, a
counterparty to a reverse repurchase agree
me
nt or securities lending agree
me
nt is not required to be a primary dealer of the Federal Reserve Bank of New
York if the company's board of directors finds that the counterparty presents a
minimal risk of default, and the value of the securities underlying a repurchase
agree
me
nt or securities lending agree
me
nt may be 100 percent of the sales price if the securities are marked to market
daily.
(2) Shares of beneficial interest issued by diversified
manage
me
nt companies that are money market funds registered with the Securities and
Exchange Commission under the Invest
me
nt Company Act of 1940 (15
U.S.C. Sec. 80a-1 et seq.).
(3) If invest
me
nt is in shares issued pursuant to paragraph (1), the company shall have
me
t either of the following criteria:
(A) Attained the highest ranking or the
highest letter and nu
me
rical rating provided by not less than two nationally recognized statistical
rating organizations.
(B) Retained an invest
me
nt adviser registered or exempt from registration with the Securities and
Exchange Commission with not less than five years' experience investing in the
securities and obligations authorized by subdivisions (a) to (j), inclusive, or
subdivisions (m) or (n) and with assets under manage
me
nt in excess of five hundred million dollars ($500,000,000).
(4) If invest
me
nt is in shares issued pursuant to paragraph (2), the company shall have
me
t either of the following criteria:
(A) Attained the highest ranking or the
highest letter and nu
me
rical rating provided by not less than two nationally recognized statistical
rating organizations.
(B) Retained an invest
me
nt adviser registered or exempt from registration with the Securities and
Exchange Commission with not less than five years' experience managing money
market mutual funds with assets under manage
me
nt in excess of five hundred million dollars ($500,000,000).
(5) The purchase price of shares of beneficial interest
purchased pursuant to this subdivision shall not include any commission that the
companies may charge and shall not exceed 20 percent of the agency's money that
may be invested pursuant to this section. However, no more than 10 percent of
the agency's funds may be invested in shares of beneficial interest of any one
mutual fund pursuant to paragraph (1).
(m) Moneys held by a trustee or fiscal agent and pledged to the pay
me
nt or security of bonds or other indebtedness, or obligations under a lease,
install
me
nt sale, or other agree
me
nt of a local agency, or certificates of participation in those bonds,
indebtedness, or lease install
me
nt sale, or other agree
me
nts, may be invested in accordance with the statutory provisions governing the
issuance of those bonds, indebtedness, or lease install
me
nt sale, or other agree
me
nt, or to the extent not inconsistent therewith or if there are no specific
statutory provisions, in accordance with the ordinance, resolution, indenture,
or agree
me
nt of the local agency providing for the issuance.
(n) Notes, bonds, or other obligations that are at all ti
me
s secured by a valid first priority security interest in securities of the types
listed by Section 53651 as eligible securities for the purpose of securing local
agency deposits having a market value at least equal to that required by Section
53652 for the purpose of securing local agency deposits. The securities serving
as collateral shall be placed by delivery or book entry into the custody of a
trust company or the trust depart
me
nt of a bank that is not affiliated with the issuer of the secured obligation,
and the security interest shall be perfected in accordance with the require
me
nts of the Uniform Com
me
rcial Code or federal regulations applicable to the types of securities in which
the security interest is granted.
(o) Any mortgage pass-through security, collateralized mortgage
obligation, mortgage-backed or other pay-through bond, equip
me
nt lease-backed certificate, consu
me
r receivable pass-through certificate, or consu
me
r receivable-backed bond of a maximum of five years' maturity. Securities
eligible for invest
me
nt under this subdivision shall be issued by an issuer having an "A"
or higher rating for the issuer's debt as provided by a nationally recognized
rating service and rated in a rating category of "AA" or its
equivalent or better by a nationally recognized rating service. Purchase of
securities authorized by this subdivision may not exceed 20 percent of the
agency's surplus money that may be invested pursuant to this section.
(p) Shares of beneficial interest issued by a joint power authority
organized pursuant to Section 6509.7 that invests in the securities and
obligations authorized in subdivisions (a) to (n), inclusive. Each share shall
represent an equal proportional interest in the underlying pool of securities
owned by the joint powers authority. To be eligible under this section, the
joint powers authority issuing the shares shall have retained an invest
me
nt adviser that
me
ets all of the following criteria:
(1) The adviser is registered or exempt from registration
with the Securities and Exchange Commission.
(2) The adviser has not less than five years of
experience investing in the securities and obligations authorized in
subdivisions (a) to (n), inclusive.
(3) The adviser has assets under manage
me
nt in excess of five hundred million dollars ($500,000,000).
F.
The Portfolio Performance Manager will provide to the Treasurer:
1.
On at least a quarterly basis, the
results of the portfolio performance. Investment
performance to be measured against a commonly accepted market benchmark which
approximates the specific restrictions on the portfolio.
Consideration will be given to the extent to which the investment results
are consistent with the investment objectives set forth in this policy.
2.
On a monthly basis a report with
at least the following information:
1.
Description of investment
2.
Date purchased
3.
Maturity date
4.
Amount of investment on a cost and on a current market basis
5.
Coupon rate
6.
Yield to Maturity at Purchase
7.
A statement that all investments are in accordance with this
Policy
G.
The District=s
Finance Supervisor is empowered to transfer monies and make investments on
behalf of the District in the absence, or at the direction, of the Treasurer
subject to the limitations in these guidelines.
IV.
Reporting
Requirements
A.
The Treasurer shall submit to the Board of Directors on a monthly
basis a report of the District=s
monthly invest
me
nt transactions pursuant to Govern
me
nt Code '53607.
B.
The Treasurer shall prepare periodic reports (at least quarterly)
for the General Manager and Board of Directors reflecting the details of
investments, returns and balances. Supplemental
or more frequent reports as requested by the Board or as determined by the
General Manager or Treasurer will be prepared.
C.
The Treasurer shall annually render to the Board of Directors a
statement of investment policy, which the Board shall consider at a public
meeting. Any changes in the
policy shall also be considered by the Board at a public meeting.
D.
On an annual basis the Treasurer will instruct the District=s
Auditor to perform a review of California Law and prepare a written report of
all changes in the law for examination by the District=s
Finance Committee. Said
reports shall contain the Auditor=s
recommendation for adoption of new investments, and shall be preceded with a
brief summary relative to the effect of recent changes in Federal and State laws
upon the District=s
Investment Policies, Objectives, Guidelines and Restrictions.
PASSED AND ADOPTED this 8th day of January 2007.
Motion by Director Roos, seconded by Director Kamper, to
approve the Consent Calendar items as presented.
PASSED AND ADOPTED this 8th day of January 2008
by the following roll call vote:
Ayes:
Holbrook
Kamper
Kuil
Roos
Noes:
None
Absent: Schulz
Consider authorizing hiring two temporary workers at the
Water Treat
me
nt Plant. Hubkey said we have one temporary employee but we need two because of
the increased number of defective fibers. He said that each ti
me
we clean the fibers we have more that need to be repaired.
He said we are still negotiating with Zenon to replace or repair the
modules. Shields said we are asking
for two, but because we already have one, but could not locate where this was
approved by the Board, thus we will only be hiring one additional temporary
employee. Thus, if approved both
will be authorized, but only one new one will be hired.
We have a
me
eting scheduled on January 23, 2008 with Zenon, who was purchased by General
Electric, to discuss the solution to this problem.
He said staff will
me
et ahead of ti
me
to discuss strategy.
Kuil asked if GE is sending so
me
one who can make decisions. Shields
replied that he has not received a list of attendees, but assu
me
s GE will send so
me
one who can make decisions on the spot.
Director Kuil asked if we had invoiced them for our costs
to repair their defective fibers. Shields
said no but that he would have Hubkey put together a sheet with our costs and
definitely bring it up with General Electric.
Moved by Director Holbrook, seconded by Director Roos, and
unanimously carried, to approve hiring two temporary employees.
President Kuil asked Hubkey to give his Water Treatment
Plant Manager’s report.
Hubkey reported the following:
In December we had zero power failures.
Relative to the leak in the sludge bed, we are attempting
to get this repaired under the warranty.
Two Atlas Screw Compressors got water in them; Gilton is
designing a cover to protect them in the future.
Ozone cleaning for iron in the tanks is finished.
On December 27, 2007 the electricity going to the plant was
shut down for 9 hours in order to facilitate hooking up to the power supply from
the Solar Farm, located next door to
the plant. We are scheduled to have
two more shutdowns before we start receiving solar power.
Consider approving a
me
nd
me
nts with the City of
Manteca
to accommodate the Costco Project. Shields
said Costco is concerned that we would or could block access to their store
based on the District’s encroach
me
nt agree
me
nt with the City of
Manteca
.
Emrick
said the agree
me
nt clarifies that
Daniels Street
may remain a public street even if the encroach
me
nt agree
me
nt is terminated. He said he recom
me
nds the proposed a
me
nd
me
nt submitted to the Board. However
Costco’s attorneys have not as yet agreed.
He would like to have authority to work with Costco to settle any minor
differences and asks that the Board give the President and Secretary authority
to execute the MOU.
Motion by Director Kamper, seconded by Director Holbrook,
and unanimously carried, to authorize District Counsel Emrick to reach an
agreement as to final wording on the MOU with Costco, and to authorize execution
of the MOU by the President and Secretary of the District.
Discussion of District pipeline replacement project on APN
226-070-02 owned by Arnold Rothlin, Jr. Shields
said that Mr. Rothlin’s complaints quoted in the newspaper are unfounded.
He said both staff and the contractor have met with Mr. Rothlin and have
gone out of their way to accommodate him. He
said there is a 16 inch natural gas PG&E pipeline in the same easement as
the line we are replacing. The gas
line required us to abandon the old poured in place pipeline, but not remove it.
Mr. Rothlin refused to allow the contractor to use property outside our
easement, even though the contractor offered to disc and reseed the areas
disturbed including our easement.
Director Kuil agreed everyone, staff, the contractor and he
did everything they could to mitigate Rothlin’s concerns.
Kuil said he would like to make sure that in the future, before we decide
to replace a pipeline on a grower’s property, that we are certain this is the
best course of action.
Director Kamper said he feels this has been done, except he
felt he could have done a better job with the newspaper reporter which should be
a good lesson to all directors. He
said he should have asked when the article was coming out, if she had talked to
staff, and if he could find out the details and get back to her before it went
to press.
Director Holbrook said we must be careful not to give one
landowner special favors, as if we do it for one, we should be prepared to do it
for everyone. Additionally he said there may be ti
me
s when we just have a property owner that cannot be satisfied.
Sayler said she agreed with Director Kamper in that when
directors are contacted by
me
dia directly, unless they are very confident about their answer, they should ask
for the reporter’s na
me
and number and let them know that they will look into the facts of the
situation and get back to the reporter as soon as possible.
They do not need to feel pressured to say anything.
Sayler would also recom
me
nd that the directors then call staff to ensure the best possible response is
given.
Gilton said that staff not only respect grower’s
property, but we are always working with contractors to make sure they also
respect grower’s property and accommodate the grower whenever practical.
No action was taken.
Appoint an Ad Hoc Committee to work with staff to improve
irrigation efficiency. Shields said
he would like a committee to work with staff to explore
me
ans to improve irrigation service, review our current efficiency incentive
programs and to determine the wishes of landowners.
In this regard, Gilton said he has invited Dr. Burt to co
me
back and talk to us again. President
Kuil asked Directors Kamper and Holbrook if they would accept the appoint
me
nt to the Ad Hoc Committee. Both
replied yes. Kuil appointed Director
Roos as alternate.
No action was taken.
Consider approving amended “Reimbursement Policy.”
Shields said in looking at the policy he wanted to make some changes and
clarify points in the policy, and put the District’s practices into the
policy. He said it is
important to remember that all charges must be “ reasonable and necessary”.
The policy clarifies that a receipt is required for meals showing details
of purchases for two reasons.
1)
The District does not reimburse for alcohol.
2)
The District needs to know how many and who are on the ticket
Emrick
said the goal is for reimburse
me
nts to qualify as reimbursable under an Internal Revenue Service Accountable
Plan, which will not require pay
me
nts to be considered as taxable inco
me
. The rate of reimburse
me
nt is based on the total per diem for the particular location as published in
“IRS Publication 1542. The dollar
amount is different based on the location. For
example,
New York City
is quite high. We use as the
maximum reimburse
me
nt, the per diem rate in the IRS Publication, ti
me
s 2, which is a change from the old policy, which was ti
me
s 3. He said if Directors, Officers,
and employees fail to comply they may be reimbursed, but the reimburse
me
nt may be taxable inco
me
. Director Roos asked if this
applies to conferences.
Emrick
said it does, that the IRS per diem ti
me
s 2 should be sufficient in all or most all cases.
If it is not, the General Manager is authorized to approve reasonable
exceptions. After discussion it was
moved by Director Holbrook, seconded by Director Roos, and unanimously carried,
to adopt the a
me
nded “Expense Reimburse
me
nt Policy”.
Manager’s Report:
Shields reported the following:
Gave a hand out of historical rainfall at Beardsley
Reservoir for the last 40 years.
Said we hosted a Tri-Dam meeting with SEWD on December 31,
2007, to review the 2008 budget for Goodwin Reservoir.
Handed out thank you cards from landowners and suppliers
expressing appreciation for waiving the 2008 irrigation charges..
Told the Board we have rented a booth for the Almond
Blossom Festival to be held February 22, 23, and 24.
Will need Directors to participate manning the booth. Asked
the Board to let him know when and if they would be available.
Passed around a Ripon Chamber of Commerce magazine with
highlights of
SSJID
. Board asked if they could get
copies of this. Shields said he
would see to it.
Security Gate here at the yard should be finished by
February 15, 2008.
Reported on a “Lobby Forum” in
Washington
D.C.
April 4th through April 11th.
Board consensus was for Director Holbrook to attend.
Property owner, McManis has asked about the three acres we
have on
River Road east
of the Ripon Spill, they want to trade us for nine acres closer to the River.
Will get additional details and put on agenda when available.
Handed out an article about the fiscal crisis in
California
.
Water Education Foundation wants an $800 contribution and
the San Joaquin Farm Bureau is also asking about donations.
Will put both on January 22, 2008 agenda.
IRS Reimbursement for use of personal vehicles is 50.5
cents per mile effective January 1, 2008.
Handed out activities report from San Joaquin River Group
Authority.
Directors’ reports:
Holbrook asked about someone from the District attending a
legislative conference in
Washington
D.C.
on February 26 thru 28, 2008. After
discussion it was agreed that Director Holbrook would attend.
Holbrook said the General Managers report from East Bay
Municipal District (EBMUD), tells about a Leadership Council to train from
within for Manage
me
nt positions. He said he understands the District prefers to promote from within
and wondered if we might do so
me
thing like this. Shields said he
would check into it.
Shields said we will be looking at obtaining grants from
both the State and Federal Govern
me
nts.
Kamper said that East Bay MUD, SEWD and others did a study
on groundwater. Asked Gilton if he
could obtain a copy of the report. Gilton
said he would.
Kamper asked about the meter SEWD was to have installed.
Shields said he would look into it.
Roos asked that mail delivered to the Directors whether or
not it is marked “personal and confidential” should not be opened.
Shields said he would see to that it is not done in the future.
Roos asked if the City of
Ripon
used any of our drains. He
said he noticed them pumping water into Lateral V near the Wilma overpass.
Gilton said he would look into it.
Kuil asked about the City of
Ripon
’s Agree
me
nt to take water from the District and where the City is taking the water.
Shields said he will find out.
President Kuil called for closed session.
District Counsel Emrick said we will be discussing the following items in
closed session:
Conference with legal counsel, anticipated litigation,
significant exposure to litigation. Gov. Code, S. 54956.9.
One case.
Conference with labor negotiator.
Agency Negotiators: Lee Clark
and Jeff
Shields. Employee Organization:
I.B.E.W. Local 1245.
Upon returning from closed session District Counsel Emrick
reported the following action was taken:
Motion by Director Kamper, seconded by Director Holbrook,
and unanimously carried to authorize Counsel to return the claim made by Pam
Neronha as being untimely and incomplete.
There being no further business to come before the Board it
was moved by Director Roos, seconded by Director Kamper, and unanimously
carried, to adjourn to January 22, 2008 at 9:00 a.m. the their chambers.
ATTEST:
John Stein
, Assistant Secretary
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