ITEM:

CONSENT CALENDAR

12.

CONSIDER EXPENDITURE of funds FOR PUBLIC INFORMATION EFFORT RE THE JANUARY 15, 2008 DRAFT CEASE AND DESIST ORDER ISSUED BY THE STATE WATER RESOURCES CONTROL BOARD  AGAINST CALIFORNIA AMERICAN WATER

Meeting Date:

#### No

From:

Darby Fuerst

Program/

General Manager

Line Item No.:

Prepared By:

Arlene Tavani

Cost Estimate:

$25,000 ## General Counsel Approval:N/A ## Committee Recommendation: The Administrative Committee reviewed this item on April 14, 2008 and recommended approval. CEQA Compliance: N/A SUMMARY: At the February 18, 2008 Closed Session of the Board, the Directors authorized an expenditure of$25,000 for public information activities related to the draft Cease and Desist Order issued on January 15, 2008, against California American Water (CAW) by staff of the State Water Resources Control Board, Division of Water Rights.  Under the direction of the Public Outreach Committee, a mailer was developed that described the draft CDO and its potential impact on the community, listed dates of meetings at which public comment would be received on the draft CDO, and agencies to contact for additional information (Exhibit 12-A).  The document was mailed to all CAW customers in the District on March 21, 2008, and reproduced as an advertisement that was published in three local newspapers.  The total cost for this effort was $18,524. RECOMMENDATION: The Board should authorize funding of$25,000 for public outreach related to the draft CDO, and approve the expenditure of $18,524 for the initial public outreach effort. Staff recommends that the$6,476 remaining be set aside for future outreach that may be needed related to the draft CDO.

IMPACT TO STAFF/RESOURCES:  Funds to pay for public outreach related to the draft CDO were not identified in the Fiscal Year 2007-08 Budget.   However, sufficient funds are available in Account No. 8900, Contingencies, to cover the $25,000 request. The District has spent$18,524 of that amount on the initial public outreach effort as follows: print - $3,485; mail -$10,142; publish ads - \$4,897. Significant staff time was devoted to development of the mailer and advertisements.

EXHIBITS

12-A    Mailer re Draft Cease and Desist Order

U:\staff\word\boardpacket\2008\2008boardpackets\20080421\ConsentCal\12\item12.doc