$1.7 million dollar unfunded CalPERS liability at GDPUD

 Board Members Present: Director Bonnie McLane, Director Ray Griffiths, Director Norm Krizl, Director Maria Capraun and Director Kathy Otermat. (Director Krizl & Capraun were sworn in at a previous meeting).

ADOPTION OF AGENDA

Moved to place Falkenstein issue to closed session, potential lawsuit

PUBLIC COMMENT

Ray Kringel questioned the unfunded liability of the side fund for CalPERS in the amount 1.7 million dollars. President Griffiths commented this item would be discussed at upcoming budget workshops.

Pat Snelling commented on a meeting in Placerville with water agencies and related groups, topic of
discussion, water rights. She warned of our needing to be aware and active in the Delta Water Project
and to be vigilant of our county water rights.

CONSENT CALENDAR

Director Maria Capraun, noted a few corrections to the minutes, specially to note, Director Capraun
and Director McLane would be the negotiators with OE39.
She also questioned accounts payable. She questioned the amount in "reserve fund" for Stumpy
Meadows. She asked Item C. Consideration & Investment Policy, be a separate agenda item for
director's consideration at the February meeting.

GENERAL MANAGER'S REPORT
Update on normal district business.

Dale Miller suggested a monthly agenda item for Old Business, where staff could report on the
outcome of a project or action. The director's agreed this was a good idea.

ELECTION OF OFFICERS
New officers, Bonnie McLane, President, Ray Griffiths, Vice President, Maria Capraun, Treasurer.

PRESIDENT'S REPORT

Director McLane thanked Director Otermat, Dave Otermat, and Steve Miller for making the trip to
Marysville to talk with CalTRANS on the Hwy 193 project, state adjustment of Hwy 193 that would
affect 140 feet of GDPUD pipe.

CALTRANS PROJECT ON CATBIRD HILL

CalTrans has sent the district a third and final request for a plan with regards to their adjustment
on Hwy 193 in Kelsey. Director Kathy Otermat, Dave Otermat, and Steve Miller had met with
CalTrans in December and reported last month on the project. CalTrans simply wants a plan from
GDPUD on how they will handle the security of the infrastructure during the road work. CalTrans
said they could do a "protect in place" with one staff from GDPUD on hand to cover unexpected
consequences. The GM felt he should hire a consultant, an engineer and contractor to work with
CalTrans. Director Otermat questioned Kelly Shively, the one engineer at the district, he had seen
the cover sheet but was not involved with the job. Director Maria Capraun asked why we had an
experienced engineer and yet the GM felt another engineer and consultants needed to be hired to do a
job, that seemingly was common and simple 140 foot adjustment. It appears CalTrans is frustrated
with dealing with the district and would like a plan submitted ASAP.

The board directed the GM to send the district engineer Kelly Shively to meet with CalTrans,
familiarize himself with the project and then report to the board at a special meeting as to his
recommendations. It was noted there would be another project with the state on Hwy 49 in the near
future and if the oversight could be handled by staff it would save the district a considerable amount.

ACCOUNTS PAYABLE AND HUMAN RESOURCE

There was discussion about having EID or Joe Harn to do our books. At the present time a large sum
is being paid to handle these items with Mary Pat Frick retiring. The district would have to outline a

description of the amount of work done at the office, an estimate of time. Either of these entities might
be able to handle the jobs at a nominal fee compared to the amount it is now costing the district.

Director McLane questioned the time involved in doing payroll. There was "shock and awe" when
the GM stated to oversee and configure payroll for 22 people, it took the district 10 hours a week.

WATER TREATMENT PLANT STAFF

Director McLane questioned if the district has ample staff to be responsible for the treatment plants.
There are two WTPO 3, with one other person just finishing his year internship when he would become
a WTPO 3 and able to oversee the plants without supervision.

DISCUSSION OF LEGAL COUNSEL

Ed Grout questioned the boards hiring an interim attorney. The board stated Bill Wright had resigned
in November and it was felt an interim was the way to handle legal counsel, and then proceed with
a job description an RFP and interview process. Obviously would take a period of time, and the
resignation had been accepted and the board needed to move forward.

To be discussed at January 17th workshop.

ROAD REPAIR WORK AT JAN FALKENSTEIN

Jan Falkenstein gave an overview of his problem with the runoff from the ditch and diversion culvert.
Moved to closed session for potential litigation.

COMMENTS FROM BOARD MEMBERS AND ITEMS TO BE HEARD AT THE NEXT
MEETING

Director Capraun requested several items to be presented to the directors, with regard to budget and
policy.

Director Otermat gave a report on the EDCty Water Agency.

CLOSED SESSION

General Manager's contract

Litigation Jean Lee Choo Leow

Negotiations with Management and Confidential Employees Assoc. and OE39

Litigation Larry and Korby Battenberg

Negotiations for GM evaluation

ADJOURN TO OPEN SESSION

A motion was passed for general counsel to research if it would take 3 or 4 votes to be able to impose
a discipline action on the GM. Motion passed voting yes, Directors Otermat, McLane, Krizl, and
Capraun, voting no, Director Griffiths.

Kelly Shively, Asst. Op Mgr reported he had met with CalTRANS and in his opinion a "protect in
place" would not work, and he along with the GM recommended the district hire a consultant, engineer,
and contractor to make a decision on the 140 ft adjustment. Staff recommendation is a direct conflict
with CalTRANS estimation of the project. Director Capraun, "Why do we have a GM and

PE making six figure salaries and we cannot do an in house adjustment for a 140
foot project."
(When an RFP goes out for an Operations Manager, perhaps the district

should look for someone that has experience with small water districts, pipes,, ditches, etc.......and
Public Relations. Outsourcing is probably the best way at this point with CalTRANS ready to
implement consequences because of a lack of response to their requests..........this is similar to the
bike path project in Cool where the GM was having conflicts working with the county.)

Divide Citizens for Water is a PAC that was established in 1996 to oversee the water district by reporting to the people. Support a program to replace,
maintain, and extend water service to the people of the district, in a reliable inexpensive way. The credit or blame is to go to the PAC not any one
individual.