REGULAR BOARD MEETING

OCTOBER 11, 2016

THIS PAGEINTENTIONALLY

LEFT BLANK

Board Meeting – 10/04/16 1 Draft

THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF STOCKTON EAST WATER DISTRICT WAS HELD AT THE DISTRICT OFFICE

6767 EAST MAIN STREET, STOCKTON, CA ON TUESDAY, OCTOBER 4, 2016 AT 12:00 NOON

A. PLEDGE OF ALLEGIANCE AND ROLL CALL

President Sanguinetti called the regular meeting to order at 12:23 p.m., and Director Cortopassi ledthe Pledge of Allegiance.

Present at roll call were Directors Cortopassi, McGaughey, McGurk, Panizza, Sanguinetti andWatkins. Director Atkins was absent. Also present were Manager Moody, District Engineer Lee,Finance Director Naray, Administrative Services Manager Lopez, Administrative Clerk Curtis andLegal Counsel Zolezzi.

B. CONSENT CALENDAR (None)

C. PUBLIC COMMENT (None)

D. SCHEDULED PRESENTATIONS AND AGENDA ITEMS

1. Minutes 09/27/16 Regular Meeting

A motion was moved and seconded to approve the September 27, 2016 Regular Meeting Minutes,as presented.Roll Call:Ayes: Cortopassi, McGaughey, McGurk, Panizza, Sanguinetti, Watkins Nayes: None Abstain: None Absent: Atkins

2. Warrants – California Public Employees’ Retirement System

A motion was moved and seconded to approve the October 4, 2016 Warrants – California PublicEmployees’ Retirement System, as presented.Roll Call:Ayes: Cortopassi, McGaughey, McGurk, Panizza, Sanguinetti, Watkins Nayes: None Abstain: None Absent: Atkins

3. Agricultural Operations Committee Meeting – Draft Fiscal Year 2017/18 AG Budget ReviewManager Moody inquired if the Board would like to move forward in scheduling an AgriculturalOperations Committee Meeting to review the Draft Fiscal Year 2017/18 AG Budget.

Finance Director Naray advised staff is looking to schedule an Agricultural OperationsCommittee Meeting in mid-November. Director Watkins advised the meeting should bescheduled within the first week of November given the ACWA Fall Conference is a few weekslater.

DRAFTAgenda Item: D-1

Date: 10/11/16

1

Board Meeting – 10/04/16 2 Draft

Director Cortopassi advised Thursday, November 10, 2016 would be the best day to host the meeting. Manager Moody advised staff will plan for the meeting on Thursday, November 10, 2016 and will contact Committee members as the date draws closer.

E. COMMITTEE REPORTS 1. San Joaquin Farm Bureau Federation – Water Committee Meeting, 09/27/16

Manager Moody attended the September 27, 2016 San Joaquin Farm Bureau Federation – Water Committee Meeting. Julianne Philips, San Joaquin Farm Bureau reported an update on the Demonstration Recharge Extraction & Aquifer Management (DREAM) Project progress. Ms. Philips reported there was a groundwater update provided on the Joint Powers Agreement (JPA). Ms. Philips reported there was a PowerPoint presentation given on the Supplemental Environmental Document on the Merced, Tuolumne and Stanislaus Rivers. The next meeting is scheduled for October 25, 2016.

2. AD HOC Technical Review Committee Meeting for the Sustainable Groundwater Management Act Work Group, 09/28/16 District Engineer Lee attended the September 28, 2016 Sustainable Groundwater Management Act (SGMA) Workgroup AD HOC Technical Review Committee Meeting. District Engineer Lee reported discussion primarily focused on the Counties with Stressed Basins Grant; there was discussion on the model domain, model calibration period and data needs and how to acquire data. District Engineer Lee reported the Consultant would need to work closely with the Ag District Representatives and Land Use Agencies to obtain any data that they do not currently have. District Engineer Lee reported there was discussion on the responsibilities and roles of the JPA and Groundwater Sustainability Agencies (GSA). The discussion followed the Draft JPA document the Attorney’s Group has been working on. The next meeting is scheduled for October 26, 2016.

F. REPORT OF GENERAL MANAGER

1. Water Supply Report as of 09/26/16 President Sanguinetti provided a handout of the Water Supply Report that included storage, release, and production data collected from various sources as of midnight last night. President Sanguinetti reported there is 78,743 AF in storage at New Hogan Reservoir. Current releases are set at 154 cfs. There is 526,786 AF in storage at New Melones Reservoir. Current release at Goodwin Dam to Stanislaus River are set at 203 cfs and release to all water users are set at 754 cfs. The water treatment plant is currently processing 28 mgd. The City of Stockton’s water treatment plant is currently processing 22 mgd. President Sanguinetti reported there are 6 irrigators on the New Hogan system and there are no irrigators pumping on New Melones system.

2. Information Items: Manager Moody noted items: F2a-1, F2a-2, F2a-3, F2a-4, F2a-5, F2a-6 and F2a-7.

3. Report on General Manager Activities a. Stockton East Water District Employee Potluck, 09/30/16

DRAFT

2

Board Meeting – 10/04/16 3 Draft

Manager Moody provided information to the Board from the September 30, 2016 Stockton East Water District Employee Potluck. Manager Moody reported the District hosts quarterly Potlucks for employees and recognized the employee birthdays within the quarter.

G. DIRECTOR REPORTS (None)

H. COMMUNICATIONS

1. Department of Fish & Wildlife – Lake & Streambed Alteration (LSA) Fees, 09/19/16 Manager Moody provided the Board with communication from the Department of Fish & Wildlife regarding Lake and Streambed Alteration (LSA) Fees, effective October 1, 2016. Manager Moody reported the fees are increasing ~129% in order to generate revenues to maintain the LSA Program. This item is for information only.

I. AGENDA PLANNING/UPCOMING EVENTS

1. San Joaquin County Agricultural Drought Task Force Meeting, 9:00 a.m., 10/05/16

2. Greater Stockton Chamber of Commerce – Business Showcase & Tradeshow Mixer, 5:00 p.m., 10/06/16

3. East Bay Municipal Utilities District – 23rd Annual Pardee BBQ, 11:30 a.m., 10/07/16

4. California Special Districts Association – 2016 Annual Conference & Exhibitor Showcase, San Diego, CA, 10/10/16 – 10/13/16

5. District Holiday – Columbus Day, 10/10/16

6. San Joaquin County & Delta Water Quality Coalition Meeting, 9:00 a.m., 10/10/16

J. REPORT OF THE COUNSEL

1. Closed Session - Potential Litigation Government Code 54956.9 (c) – four cases

President Sanguinetti adjourned the meeting to closed session at 12:40 p.m. to discuss closed session agenda items. The regular meeting reconvened at 1:50 p.m., with no reportable action.

J. ADJOURNMENT

President Sanguinetti adjourned the meeting at 1:51 p.m. Respectfully submitted, Scot A. Moody Secretary of the Board tbc DRAFT

3

THIS PAGEINTENTIONALLY

LEFT BLANK

4

Agenda Item: D-2a Date: 10/11/16

5

6

Agenda Item: D-2b Date: 10/11/16

7

THIS PAGEINTENTIONALLY

LEFT BLANK

8

Agenda Item: D-2c Date: 10/11/16

9

THIS PAGEINTENTIONALLY

LEFT BLANK

10

Agenda Item: D-2d Date: 10/11/16

11

12

Agenda Item: D-2e Date: 10/11/16

13

THIS PAGEINTENTIONALLY

LEFT BLANK

14

Agenda Item: D-2f Date: 10/11/16

15

THIS PAGEINTENTIONALLY

LEFT BLANK

16

Agenda Item: D-2g Date: 10/11/16

17

THIS PAGEINTENTIONALLY

LEFT BLANK

18

Agenda Item: D-2h Date: 10/11/16

19

THIS PAGEINTENTIONALLY

LEFT BLANK

20

Agenda Item: D-3 Date: 10/11/16

21

22

23

THIS PAGEINTENTIONALLY

LEFT BLANK

24

Agenda Item: D-4 Date: 10/11/16

25

THIS PAGEINTENTIONALLY

LEFT BLANK

26

Page 1 of 4

Memorandum

To: Scot Moody – General Manager From: Cathy Lee – District Engineer Jim Wunderlich – Water Treatment Plant Manager Date: 10/03/2016 Re: Water Quality and Water Treatment Plant Operations Needs Discussion

Introduction The District’s municipal water sources are Stanislaus River supply from the New Melones Reservoir under the Central Valley Project (CVP) contract and the Calaveras River supply from the New Hogan Reservoir with the United States Bureau of Reclamation (USBR). The two water sources have different water quality as Stanislaus River is a snow-fed stream with low alkalinity, low hardness, and low organic matter while Calaveras River is a rain-fed stream with higher alkalinity, high hardness, and high organic matter. The District’s water treatment plant (WTP) is a “conventional” water treatment plant with physical processes such as coagulation, flocculation, filteration, and disinfection. This type of water treatment is effective in removal of suspended materials and inactivate bacteria/viruses to provide safe drinking water to the public. As such, water sources without elevated dissolved materials achieve the regulatory compliance standards set out for public health protection. Stanislaus River water quality is lower in dissolved in minerals and chemicals, compared to the Calaveras River, and therefore, suits the current treatment design. With the recent drought condition in the State, the District’s Stanislaus River supply has been reduced or even eliminated. To comply with water supply contract requirements, the District needed to use Calaveras River supply with supplemental groundwater supplies. This water quality change resulted in additional chemical treatment processes necessary to adjust the water quality to meet potable water standards. This includes additional pre-treatment chemical addition of potassium paramagnet with postponed chlorine addition to lower the total organic carbon (TOC) and trihalomethan (THM) concentrations. Alum is still the main coagulant but different formulations/variants such as poly aluminum chloride (PACl) and alumimum chlorhydrate (ACH) also show positive results in lower the THM concentrations in finished water. The District’s TOC reduction study also recommended the addition of PACl to lower the concentrations of TOC as a mean to reduce the THM formations.

Agenda Item: D-5 Date: 10/11/16

27

28

29

Page 4 of 4

Other Projects With the increase use of Calaveras River supply and to comply additional regulatory standards, additional treatment processes are needed to ensure water quality in finished water. As recommended by the TOC removal study, the District is implementing more frequent granular activated carbon (GAC) change out and investigating additional treatment chemicals. Staff have brought two other improvement projects to the Board previously to help the water treatment processes including constructing a permanent potassium permanganate feed system to increase the TOC removal and installing an aeration system in Finished Water Reservoir #2 to reduce THM concentrations in finished water. The potassium permanganante feed system would be about $500,000 and the aeration system is around $750,000. Recommendation Staff recommends the addition of another tank to be included in the Alum (T2) Tank Replacement Project so the District would have the ability to store both ACH and PACl on site as necessary to address water quality issues. Staff also recommends specifying one single type of tank material be included in the bid and seeks direction from the Board on the material type. Staff also sees direction from the Board on the implementation of a potassium permanganate feed system and the aeration system in Finished Water Reservoir #2.

30

Agenda Item: E-1 Date: 10/11/16

31

THIS PAGEINTENTIONALLY

LEFT BLANK

32

Weekly Water Report As of: Oct. 3, 2016

As of: Oct. 10, 2016

New Hogan (NHG) TOC 308,985 AF Storage: 78,743 AF Net Storage Change: -2,392 AF Inflow: 3 CFS Release: 154 CFS

Projected Storage in October 2016 ~75,000 New Melones (NML) Allocation 0 AF

Storage: 526,786 AF Net Storage change: -3,334 AF Inflow: 653 CFS Release: 771 CFS

Source: CDEC Daily Reports Goodwin Diversion (GDW)

Inflow (Tulloch Dam): 765 CFS

Release to Stanislaus River (S-98): 203 CFS Release to OID (JT Main): 354 CFS Release to SSJID (SO Main): 197 CFS Release to SEWD: 0 CFS Total Release 754 CFS

Source: Tri-Dam Operations Daily Report Farmington Dam (FRM)

Diverted to SEWD: 0 CFS Diverted to CSJWCD: 0 CFS

Source: USACE WCDS Hourly Report Surface Water Used

Irrigators on New Hogan: 6 Irrigators on New Melones: 0 DJWTP Production: 28 MGD City of Stockton DWSP Production: 22 MGD

District Ground Water Extraction

74-01 0 GPM 74-02 0 GPM North 0 GPM South 0 GPM Extraction Well # 1 0 GPM Total Well Water Extraction 0 GPM

Agenda Item: F-1 Date: 10/11/16

33

THIS PAGEINTENTIONALLY

LEFT BLANK

34

Agenda Item: G-1 Date: 10/11/16

35

THIS PAGEINTENTIONALLY

LEFT BLANK

36

Agenda Item: G-2 Date: 10/11/16

37

THIS PAGEINTENTIONALLY

LEFT BLANK

38