MISSION STATEMENT The mission of South Feather Water and Power (SFWP) is both to deliver a dependable supply of safe, quality drinking water to its customers, and a dependable supply of water for agricultural users, in an economical, efficient and publicly responsible manner. Hydroelectric generation facilities shall be utilized to optimize revenue from power generation, consistent with providing adequate and dependable water supplies to customers. SFWP is also committed to providing its employees a safe work environment and encouraging personal growth and attainment of goals.

SOUTH FEATHER WATER & POWER AGENCY

AGENDA

Regular Meeting of the Board of Directors South Feather Water & Power Agency

Board Room, 2310 Oro-Quincy Highway, Oroville, California Tuesday; June 23, 2009; 2:00 P.M.

A. Pledge of Allegiance

B. Roll Call

C. Approval of Minutes – Regular Meeting on May 26, 2009 (Tab 1)

D. Approval of Warrants (Tab 2)

E. Public Participation Individuals will be given an opportunity to address the Board regarding matters within the Agency’s jurisdiction that are not scheduled on the agenda, although the Board cannot take action on any matter not on the agenda. Comments will be limited to 5 minutes per speaker. An opportunity for comments on agenda items will be provided at the time they are discussed by the Board. Comments will be limited to 5 minutes per speaker per agenda item.

F. Staff Reports (Tab 3)

G. Directors’ Reports Directors may make brief announcements or reports for the purpose of providing information to the public or staff, or to schedule a matter for a future meeting. The Board cannot take action on any matter not on the agenda and will refrain from entering into discussion that would constitute action, direction or policy, until such time as the matter is placed on the agenda of a properly publicized and convened Board meeting.

H. Business – Audit Contract Extension (Tab 4) Acceptance of proposal from Mann, Urrutia, Nelson & Associates, LLP to extend the previously-approved audit contract and authorization for the annual independent audit for the years ending December 31, 2009 through 2011.

Sunset Hill Telecommunications Lease Agreement with DigitalPath, Inc. (Tab 5) Action to approve an amendment of the communication lease agreement with DigitalPath, Inc., for the Agency’s Sunset Hill site.

LAFCo Election (Tab 6) Action to cast the Agency’s vote for Butte LAFCo non-enterprise special district commissioners.

Closed Session. Conference With Real Property Negotiator. Government Code §54956.8. (Tab 7) Property: Surplus water. Agency Negotiator: Michael Glaze, General Manager. Negotiating Party: San Diego County Water Authority. Under Negotiation: Price, quantity, refill requirements, conditions for transfer, and terms of payment.

I. Adjournment

28

MINUTES of the REGULAR MEETING of the BOARD of DIRECTORS of SOUTH FEATHER WATER & POWER AGENCY

Tuesday, May 26, 2009, 2:00 P.M., Agency Board Room, 2310 Oro-Quincy Hwy. Oroville, California

DIRECTORS PRESENT: Lou Cecchi, James Edwards, Dee Hunter, Lou Lodigiani and Dennis Moreland.

STAFF PRESENT: Steven Wong, Finance Division Manager; Art Martinez, Information Systems Manager; Matt Colwell, Water Division Manager; Kathy Zancanella, Power Division Manager; Michael Glaze, General Manager. OTHERS PRESENT: Jean Brown, Hank Bailey, Everett Smart and Dolly Smart. CALL TO ORDER President Cecchi called the meeting to order at 2:00 p.m. and led the Pledge of Allegiance. APPROVAL OF MINUTES M/S/C (Hunter/Moreland) approving the Minutes of the regular monthly meeting of April

28, 2009. APPROVAL OF WARRANTS M/S/C (Lodigiani/Hunter) approving the total Water Division expenditures for the month

of April 2009 in the amount of $476,871.11 – Warrants #24181 through #24235, #24026 through #24069, and #24127 through #24152; and, the total Power Division expenditures for the month of April 2009 in the amount of $1,079,439.40 – Warrants #65412 through #65454, #65287 through #65330, and #65369 through #65394.

PUBLIC PARTICIPATION Dolly Smart, residing at 351 Mt. Ida Road, stated that there was insufficient water in the creek running through her property to keep her pond full. She said that this was the first year this had happened. Mr. Colwell reported that Water Division crews had been applying special attention to leaks and seepage in the Palermo Canal upstream of Mrs. Smart’s property resulting in less lost water. Mr. Glaze explained to Mrs. Smart that she would need to apply for a service if she wanted additional water for her pond, and directed Mr. Colwell to have an estimate for installing a service for Mrs. Smart prepared and communicated to her as soon as possible. Hank Bailey questioned why PG&E was asking the California Public Utilities Commission to keep the terms of the power-purchase agreement between PG&E and SFWPA confidential. Mr. Glaze replied that PG&E did not want its competitors knowing the agreement’s particulars. FINANCE DIVISION MANAGER’S REPORT Finance Division Manager Steve Wong verbally reported that revenue from domestic water sales is down 4% from last year. The Board reviewed a written report from Mr. Wong, including a breakdown of revenue v. expenses for each of the irrigation system components. South Feather Relicensing Consulting Services Devine, Tarbell and Associates, Inc. (DTA), consultant for the South Feather Power Project relicensing has not submitted a new invoice since the one last seen by the Board which covered work through February 28, 2009. The payments to DTA on this project to-date amount to $4,976,850. Butte County Property Tax Payment The first major property tax payment was recently received from the County for the 2009 year in

29

the amount of $201,660. Property tax revenue represents over 10% of the Agency’s recurring Water Division revenue. The payment exceeds the amount received at this time in 2008 and the forecast for 2009 property tax revenue is that it will be in excess of the budgeted estimate. However, it is likely the State budget and fiscal problems will impact this revenue source to the Agency in the future. Woodleaf TWD PG&E sent a check in the amount of $16,787 for Woodleaf tailwater-depression (TWD) activity, and another $411 for electric energy generated from surplus water in March, 2009. It is anticipated that additional revenue will come from these sources before the year is over. Springbrook Conference Mr. Wong attended the annual Springbrook Software in Portland on May 5-8. Springbrook is the provider of the Agency’s accounting and utility-billing software. This was his first time to attend this conference and he reported that it was informative and educational. He reported that he was able to visit with other Springbrook users, including a representative from Paradise Irrigation District and a few others from California. POWER DIVISION MANAGER’S REPORT Power Division Manager Kathy Zancanella verbally reported that all campgrounds are open and the Lost Creek dam spill boards are in. The Board reviewed a written report from Mrs. Zancanella, including storage, generation and precipitation reports. She reported that the rains that came at the beginning of May as the reservoirs were about to reach their maximum storage levels required Power Division crews to increase flow releases from Little Grass Valley Dam to 435 cfs and delay installation of the flashboards at Lost Creek Dam. The Sly Creek Dam spill gate was partially raised for four days to spill the inflows that exceeded the capacity of Sly Creek Powerhouse. The South Fork Diversion tunnel was closed for four days, spilling all of the Little Grass Valley releases down the South Fork Feather River. The rain gauge at Forbestown headquarters measured nearly eight inches from May 1 - 6, while the LaPorte gauge recorded over ten inches of rain. Peak spill flows at Slate Creek Diversion reached 2,200 cfs, but dropped quickly once the rains stopped. A small amount of spill continued at Lost Creek and Forbestown Diversion through May 18, primarily because PG&E had to operate the units to manage transmission congestion, which meant they were regulated up and down rather than being left at full load. The spill conditions allowed the Agency to meet its obligation to provide a “flushing flow” at Lost Creek Dam. The FERC license specifies that a flow of between 390 and 740 cfs be released for 24 hours at least every four years. However, it was too late in the year to conduct sediment pass-through operations at Slate Creek. Maintenance Projects Ponderosa Dam Spill Gates Jeffco Painting completed recoating the Ponderosa Dam spill gates on April 30, two weeks ahead of the deadline. Their work was of very good quality and they left the site looking clean. A seven-day cure time was required after completion of the painting prior to immersing the gates. However, the spills that occurred throughout the first half of May delayed closing the gates for summer operation. Sly Creek Campground – New Restroom During the week of April 27, Equipment Operator Joe Gibson and Utility Worker Gary Daley completed paving the approach to the new restroom that was installed last Fall after the campground was closed for the season. They also relocated the dumpster pad and barricade posts. The new facility was ready for public use when the campground opened May 1.

30

General Information Quagga Mussels PG&E advised the Agency of the new California Department of Fish and Game regulations regarding Quagga mussels. Quagga mussels are a relative of the zebra mussel and can cause considerable problems related to water delivery by clogging intakes and screens. The regulations state that any “person…local agency, district or authority that owns or manages a reservoir…where recreational, boating, or fishing activities are permitted…” must assess the vulnerability of the reservoir for the introduction of the non-native mussel species and develop a program designed to prevent introduction of the species. The species have been found in lakes Mead and Havasu and in seven Southern California reservoirs. Mrs. Zancanella conducted a vulnerability assessment of Agency reservoirs based on calcium levels recorded during the relicensing of the South Feather Power Project. The U.S. Environmental Protection Agency set up ecoregional risk classifications based on calcium concentrations, and determined that waters with calcium concentrations of less than 12 mg/L were very low risk. In 2004, the calcium levels in Little Grass Valley reservoir ranged from 0.73 to 2.9 mg/L; the levels in Sly Creek were 0.83 to 3.4 mg/L; and in Ponderosa they were 3.2 to 4.0 mg/L. No statistics were available for Lost Creek, but levels should be in the same range as the other reservoirs since it has the same source water. Based on this evaluation, Agency reservoirs should be considered at low risk for introduction of the species. While the risk is low, public education about the risks associated with transporting the mussels by moving boats between different waters seems prudent and is what PG&E is doing (at Lake Tahoe a more stringent boat inspection program has been initiated). The Fish and Game website provided downloadable brochures ready for printing and posting, and these have now been posted at each of the boat ramps at Little Grass Valley and Sly Creek reservoirs. The brochures instruct boaters to “clean, drain and dry” their boats between uses and give hints on where to look for the mussels on the boat, trailer and towing vehicle. NHA Conference Mrs. Zancanella attended the annual National Hydropower Association conference in Washington, DC on May 11-13. Among the topics she found interesting were the discussions of energy planning being done at the national level. Unfortunately, as Congress lays out a renewable energy strategy, it is, for the most part, ignoring conventional hydro as a renewable form of energy and not fully addressing the transmission planning required to move the energy produced to where it will be needed. A big driver of energy policy is climate change and the direction of the future seems to be a “cap and trade” or “carbon tax” program in which low-emitting technologies are used to offset high-emitting energy technologies. A related session was focused on greenhouse gas (GHG) emissions from reservoirs. All water bodies, including natural lakes and streams, emit some level of carbon dioxide and methane gasses, usually as a result of the decomposition of organic matter. To date, most studies have looked at the gross emissions from reservoirs, but not the net emissions, since some water bodies may serve as sinks that absorb GHG at certain times. What studies have found so far is that, within about ten years of construction, reservoir emissions mimic those of natural lakes and streams. Studies are continuing in this area – SMUD and DWR are looking at the issue in California because of Climate Registry requirements for reporting. DWR has hired Axys Technologies to do a net emissions study at Lake Oroville this summer. The information she gathered at the conference was valuable and she said she gained a better understanding of the issues related to Agency facilities that will be subject to the renewable energy credits accounting system under the Western Renewable Energy Generation Information System (WREGIS). This is required in order to verify that PG&E is meeting its requirements under California’s Renewables Portfolio Standards for 20% of retail sales procured from renewable sources by 2010. WATER DIVISION MANAGER’S REPORT The Board reviewed a written report from Matt Colwell, Water Division Manager. Distribution Operations Water Division staff has been accomplishing water system maintenance and normal operations tasks. Ongoing projects include irrigation and domestic distribution system betterments, new

31

service installations, and leak repairs. Distribution crews have spent a couple of weeks relocating domestic water mainline, services, and valves in a cooperative effort on a Butte County Safe Route to Schools Project along Lower Wyandotte and Monte Vista roads. The project will provide curb, gutter and sidewalk in the vicinity of Helen Wilcox Elementary School. The installation of a 48” concrete arch drainage pipeline creates the most conflict with existing utilities. The Irrigation system’s current releases are: Forbestown Ditch SF 14 = 11 cfs

SFWPA = 8 cfs NYWD = 3 cfs

Bangor Canal SF 25 = 11 cfs ` Palermo Canal = 12 cfs

Water Treatment Operations All bacteriological requirements were met for the Miners Ranch Treatment Plant, Bangor Treatment Plant, Sly Creek Campground and Strawberry Campground. The Agency’s MRTP second quarter lab results for disinfection by-products are well below the California Department of Public Health Maximum Contaminant Level (MCL).

Total Trihalomethanes (TTHMs)

MCL = 80 ppm

MRTP = 19 ppm

By-product of drinking water chlorination

Some people who drink water containing trihalomethanes in excess of the MCL over many years may experience liver, kidney, or central nervous system problems, and may have an increased risk of getting cancer.

Haloacetic Acids (HAAs)

MCL = 60 ppm

MRTP = 19 ppm

By-product of drinking water disinfection

Some people who drink water containing haloacetic acids in excess of the MCL over many years may have an increased risk of getting cancer.

The 2009 cumulative MRTP water production through April is approximately 95% of the recent five-year average. Solar Plant Production The monthly solar power production exceeded consumption by 12,300 KWH, which will be credited to the annual-demand account with PG&E. There is enough data to indicate that the spring months provide the opportunity to produce power exceeding the MRTP power demands. The Agency’s maximum and minimum monthly demand (water use) continues to decline even in the drought years. GENERAL MANAGER'S REPORT The Board reviewed a written report from Michael Glaze, General Manager. Power Purchase Agreement – PG&E PG&E filed its application to the California Public Utilities Commission (PUC) on May 18 for approval of the power-purchase agreement the Board approved on April 28. The application included a request that the PUC issue its resolution approving the agreement no later than November 20, 2009 (the new agreement has a July 1, 2010 commencement date). The application was submitted with a request that the PUC treat it confidentially. Thus, details of the agreement are not included in the application that is available for public review. Directors were advised that a copy of PG&E’s application (hard copy or .pdf attachment via email) would be provided to them upon request. Davis-Grunsky Contract – DWR Recognition Directors reviewed a letter from Lester Snow, DWR Director, expressing “appreciation for the long and successful relationship” SFWPA and DWR had “in conjunction with projects financed by the Davis-Grunsky Act of 1960.” A plaque from DWR commending the Agency for its “diligent efforts … in providing high quality recreation facilities at Little Grass Valley Reservoir …” was displayed. Suspension of Prop 1A Promised by Governor Voters Tuesday rejected the slate of budget propositions that were proposed by the governor and legislature as part of the 2009-10 state budget. Now that the outcome of the election is known, local governments across the state are preparing for the loss of property tax revenue that will

32

result from the governor’s promised suspension of Prop 1A and borrowing from property tax revenues to help close the state’s massive budget deficit. The governor has proposed borrowing 8% of property tax revenue from local governments. SFWPA will first be impacted by the borrowing in December, later this year. If the amount borrowed is only 8%, the hit on the Agency will be approximately $28,000 in 2009, and $45,000 in 2010 (assuming the borrowing continues for more than one fiscal year). However, the Agency’s 2009 budget anticipated property tax revenue approximately $50,000 less than what is now apparently the actual for the year, so the 8% hit will still leave an exceedence of approximately $22,000 is actual property tax revenue over the budgeted amount. CSDA Call for Nominations SFWPA is a member of California Special Districts Association (CSDA). CSDA is governed by a board of directors comprised of three representatives each from six geographic regions throughout the state. The time commitment involves six board meetings and four to six committee meetings annually in Sacramento, plus attending two annual multi-day events. Directors were informed that if one of them would like to have his/her name placed in nomination, action by the SFWPA board would be required. No director indicated an interest in being nominated. DIRECTORS’ REPORTS Director Hunter reported on a recent visit she had with Maurice Martinez, long-time Agency customer and regular board-meeting attendee in years past. Director Lodigiani reported on a facilities tour that Mr. Glaze took him on last month. INDEPENDENT AUDITOR’S REPORT In addition to the 2008 Independent Auditor’s Report prepared by Mann, Urrutia, Nelson, CPAs & Associates (their last report in a 3-year contract), directors reviewed the auditor’s statement of accounting standards, a letter regarding internal controls, and the Agency’s response to the auditor’s findings and recommendations. Mr. Wong summarized the content of the documents and answered questions by directors and those in the audience. Mr. Cecchi reported that the Board’s Finance Committee (Directors Hunter and Cecchi) recommends approval of the report. M/S/C (Hunter/Edwards) accepting the 2008 Independent Auditor’s Report and Financial

Statements for the Year Ended December 31, 2008, prepared by Mann, Urrutia, Nelson, CPAs & Associates.

Mr. Glaze reported that he had authorized paying a $2,500 charge, over and above the contract amount, invoiced by the auditing firm for additional audit work required to substantiate a larger-than-anticipated Power Division inventory balance. RECESS (3:10 p.m.) CLOSED SESSION (convened at 3:22 p.m.) Conference with Real Property Negotiators (Government Code §54956.8) Property: Surplus water. Negotiating Party: San Diego County Water Authority. Agency Negotiators: Michael Glaze. Under Negotiation: Price, quantity, conditions for transfer, and terms of payment. Under Negotiation: Price, conditions, and terms of payment. OPEN SESSION (convened at 3:25 p.m.) President Cecchi announced that no action was taken by the board during the closed session. ADJOURNMENT President Cecchi adjourned the meeting at 3:25 p.m.

33

Michael C. Glaze, Secretary Louis F. Cecchi, President

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Steve Wong, Finance Division Manager DATE: June 15, 2009 RE: Approval of Warrants Agenda Item for 6/23/09 Board of Directors Meeting May, 2009 Water Division expenses are summarized as follows: Warrant Numbers: 24283 to 24324 , $ 75,750.30 Voids: , Misc. Checks: 24153 to 24180 , $ 199,916.19 and 24236 24256 , Voids _____ Payroll Expenses: $ 199,214.16 TOTAL WATER DIVISION EXPENDITURES FOR MAY 2009: $ 474,880.65 May, 2009 Power Division expenses are summarized as follows: Warrant Numbers: 65490 to 65525 , $ 18,766.92 Voids: , Misc. Checks: 65395 to 65411 , $ 123,078.17 and 65455 to 65471 , Payroll Expenses: $ 132,461.80 TOTAL POWER DIVISION EXPENDITURES FOR MAY 2009: $ 274,306.89 Action to approve all expenditures:

“I move approval of the total Water Division expenditures for the month of May, 2009 in the amount of $474,880.65; and approval for the total Power Division expenditures in the amount of $274,306.89.”

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Steve Wong, Finance Division Manager DATE: June 17, 2009 RE: General Information (regarding matters not scheduled on the agenda) 6/23/09 Board of Directors Meeting South Feather Relicensing Consulting Services Devine, Tarbell and Associates, Inc. (DTA), consultant for the South Feather Project relicensing have submitted invoices and reports covering their progress from March 1, 2009 through April 25, 2009 in the amount of $13,029. The payments to DTA for their services on this project to-date amount to $4,989,879. DTA is now also known as HDR Engineering Inc. Standard and Poor’s In 2003, the Agency issued Certificates of Participation to finance the purchase of the solar energy system at the Miner’s Ranch Water Treatment Plant and to fund improvements to the administration building. When issued, these Certificates were rated “BBB” by the bond rating agency of Standard and Poor’s (S&P). S&P recently completed a review of the Agency’s current financial position and I am pleased to report that S&P has upgraded its rating on the Certificates to “A”. The S&P report published on June 2, 2009 is attached. PG&E Internal Audit PG&E sent one of its internal auditors, Jeff Wilkins, to visit SFWPA the first week of June. At this time the audit is still in process. It is my understanding the report will be completed by the end of the month, circulated among PG&E staff and then forwarded to the Agency. Kathy provided Mr. Wilkins with a quick tour of a few facilities and Pat Sands and Debby Cunningham of the Finance Division did a terrific job of supplying Mr. Wilkins with the documentation he requested. Woodleaf TWD SFWPA has received $39,831 from PG&E for Woodleaf Tailwater Depression activity in April and May, 2009. While better than our 2009 budget estimate, the payments were less than we anticipated given the spring rains which hit our area.

MINERS RANCH TREATMENT PLANT CONSUMPTION: 2000 - 2009Volume

Month 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 6,061 6,113 6,173 6,313 6,429 6,474 6,573 6,669 6,725 6,769 7.639 6.487 6.775 6.122 7.271 7.554 7.448 8.090 8.207 8.889 119,450$ 113,241$ 113,477$ 133,641$ 143,027$ 145,277$ 148,137$ 153,959$ 154,692$ 159,260$

2 6,052 6,120 6,176 6,339 6,420 6,471 6,587 6,679 6,734 6,769 4.955 5.431 6.936 6.628 6.796 6.691 5.292 8.699 7.481 6.365 103,050$ 106,726$ 115,056$ 141,679$ 140,355$ 140,867$ 135,734$ 155,627$ 152,150$ 145,022$

3 6,099 6,112 6,185 6,352 6,418 6,491 6,599 6,683 6,734 6,611 5.566 5.228 6.334 6.774 4.730 6.973 7.711 7.152 7.257 5.880 107,018$ 105,612$ 113,010$ 139,244$ 128,788$ 143,055$ 149,585$ 148,605$ 149,953$ 141,538$

4 6,065 6,123 6,195 6,351 6,431 6,504 6,601 6,692 6,730 6,617 11.165 8.803 8.342 7.575 14.813 8.602 4.902 13.375 12.141 9.000 118,114$ 126,323$ 123,744$ 127,524$ 186,929$ 152,140$ 134,041$ 184,144$ 178,390$ 160,660$

5 6,080 6,122 6,193 6,350 6,425 6,521 6,617 6,696 6,732 6,618 23.474 13.808 16.710 8.391 20.148 9.999 12.634 14.079 22.608 18.122 169,787$ 152,637$ 168,473$ 149,448$ 215,567$ 161,093$ 179,334$ 187,560$ 235,151$ 210,095$

6 6,079 6,138 6,185 6,362 6,430 6,523 6,629 6,729 6,739 21.765 29.002 24.116 23.040 26.978 20.752 23.382 31.806 26.294 192,266$ 222,846$ 203,323$ 230,840$ 250,942$ 221,634$ 239,100$ 276,121$ 254,186$

7 6,090 6,146 6,212 6,372 6,447 6,523 6,622 6,704 6,723 33.114 32.707 30.445 31.117 35.443 25.326 36.390 32.093 32.619 239,881$ 238,548$ 232,671$ 277,024$ 292,074$ 246,343$ 300,406$ 284,092$ 286,867$

8 6,103 6,148 6,222 6,403 6,451 6,536 6,653 6,711 6,744 26.787 33.005 35.448 37.053 31.434 34.428 34.406 32.652 34.451 214,049$ 239,424$ 251,741$ 297,688$ 273,996$ 286,438$ 295,228$ 285,480$ 296,155$

9 6,114 6,152 6,251 6,396 6,463 6,536 6,652 6,715 6,742 31.057 32.518 34.240 27.494 35.193 33.775 35.822 38.006 32.202 231,555$ 236,950$ 247,204$ 251,588$ 291,115$ 288,492$ 302,033$ 310,005$ 285,155$

10 6,120 6,156 6,257 6,407 6,463 6,543 6,653 6,722 6,752 20.615 19.410 21.874 25.796 23.999 22.126 21.505 18.185 22.185 185,800$ 180,771$ 193,918$ 244,822$ 235,668$ 229,208$ 226,935$ 209,278$ 233,964$

11 6,125 6,162 6,244 6,406 6,460 6,558 6,664 6,720 6,772 9.599 15.217 17.848 18.403 11.714 14.193 17.340 14.494 15.691 130,495$ 160,144$ 172,334$ 230,893$ 169,262$ 183,401$ 205,562$ 191,507$ 198,159$

12 6,123 6,174 6,241 6,404 6,477 6,565 6,657 6,726 6,772 6.673 7.380 9.536 7.259 6.858 7.959 7.683 9.550 7.913 114,130$ 116,335$ 126,989$ 143,185$ 142,156$ 151,576$ 154,272$ 162,949$ 154,678$

6,093 6,139 6,211 6,371 6,626 6,520 6,626 6,704 6,742 6,677 202.410 208.996 218.603 205.651 225.378 198.380 214.517 228.180 229.048 48.256 1,925,595$ 1,999,557$ 2,061,941$ 2,367,575$ 2,469,879$ 2,349,523$ 2,470,368$ 2,549,327$ 2,579,501$ 816,576$

Averages

RevenueCustomers(x 1,000,000 cf)

Totals Totals

20.000

25.000

30.000

35.000

40.000

eet

x 1,

000,

000

VOLUME2000200120022003200420052006200720082009

0.000

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

1 2 3 4 5 6 7 8 9 10 11 12

Cu

bic

Fee

t x

1,00

0,00

0

Month

VOLUME2000200120022003200420052006200720082009

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE 2000200120022003200420052006200720082009

Consumption Report 1 6/9/2009 3:55 PM

BANGOR TREATMENT PLANT CONSUMPTION: 2000 - 2009

Month 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 18 18 19 22 22 22 24 23 23 22 17.2 24.6 55.0 35.7 18.9 17.0 13.9 11.8 12.7 12.6 350$ 390$ 505$ 558$ 463$ 451$ 404$ 386$ 402$ 396$

2 18 18 19 22 22 22 23 23 23 22 15.5 28.3 49.7 32.3 16.9 23.0 10.4 18.2 10.4 8.5 333$ 410$ 501$ 538$ 450$ 489$ 384$ 427$ 387$ 370$

3 18 18 19 23 22 24 23 23 23 20 15.3 24.7 29.0 30.7 12.3 16.6 16.0 12.9 15.5 8.9 336$ 380$ 412$ 533$ 421$ 468$ 419$ 394$ 420$ 363$

4 17 18 19 23 22 23 23 23 23 20 20.9 45.0 29.5 25.3 25.4 21.2 9.9 35.5 17.4 12.9 368$ 472$ 415$ 489$ 505$ 483$ 380$ 503$ 432$ 388$

5 17 18 19 22 22 23 23 23 23 20 34.4 48.4 35.8 32.4 52.0 19.9 15.0 52.2 35.1 30.1 442$ 512$ 448$ 530$ 675$ 474$ 413$ 586$ 546$ 498$

6 18 18 19 21 22 23 24 23 23 63.4 80.1 94.2 70.9 76.2 54.3 54.6 90.6 62.7 602$ 670$ 704$ 766$ 781$ 688$ 662$ 754$ 699$

7 18 18 19 21 22 24 22 23 24 141.3 86.1 117.3 102.3 98.4 61.3 89.3 79.9 79.0 892$ 680$ 794$ 899$ 900$ 712$ 827$ 799$ 814$

8 18 18 19 21 22 24 23 23 22 99.0 105.1 140.5 166.1 99.4 94.5 103.7 116.7 96.4 707$ 713$ 854$ 1,086$ 895$ 858$ 878$ 948$ 855$

9 18 18 21 21 22 23 23 23 22 116.1 119.8 109.1 80.6 109.3 99.2 95.0 105.0 99.9 767$ 740$ 785$ 818$ 962$ 867$ 868$ 913$ 876$

10 18 18 20 22 22 23 24 23 22 69.5 84.1 99.4 79.7 77.6 67.2 61.8 46.0 61.2 598$ 633$ 743$ 795$ 797$ 723$ 712$ 615$ 699$

11 18 19 22 22 22 23 23 23 23 51.4 72.4 72.2 77.9 36.2 37.0 42.8 24.8 32.2 542$ 610$ 657$ 749$ 538$ 559$ 580$ 480$ 521$

12 18 19 21 22 22 23 23 23 22 34.6 35.7 31.8 22.9 21.5 20.7 16.3 14.2 10.7 449$ 446$ 445$ 489$ 480$ 456$ 415$ 411$ 384$

18 18 20 22 22 23 23 23 23 21 678.6 754.3 863.5 756.8 644.1 531.9 528.8 607.8 533.1 73.0 6,385$ 6,655$ 7,261$ 8,249$ 7,866$ 7,229$ 6,941$ 7,217$ 7,034$ 2,015$

Averages

Customers

Totals

RevenueVolume(x 1,000 cf)

Totals

100.0

120.0

140.0

160.0

180.0

Fee

t x

1,00

0

VOLUME2000200120022003200420052006200720082009

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

1 2 3 4 5 6 7 8 9 10 11 12

Cu

bic

Fee

t x

1,00

0

Month

VOLUME2000200120022003200420052006200720082009

$-

$200

$400

$600

$800

$1,000

$1,200

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE2000200120022003200420052006200720082009

Consumption Report 2 6/9/2009 3:55 PM

COMMUNITY LINE WATER CONSUMPTION: 2000 - 2009

Month 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 58 59 65 63 61 60 65 65 66 66 165.7 141.7 211.6 305.8 84.9 89.8 136.5 80.9 130.0 135.7 809$ 794$ 933$ 1,417$ 1,155$ 1,142$ 1,278$ 1,207$ 1,289$ 1,295$

2 57 58 65 59 61 59 64 63 64 65 101.9 119.0 209.2 183.8 70.9 74.9 47.5 127.8 102.3 130.6 732$ 761$ 930$ 913$ 1,141$ 1,110$ 1,165$ 1,234$ 1,225$ 1,272$

3 57 58 65 62 59 59 64 65 66 65 116.4 105.4 125.7 89.9 65.3 68.3 67.8 82.6 100.0 91.9 747$ 747$ 844$ 1,166$ 1,100$ 1,103$ 1,190$ 1,211$ 1,258$ 1,232$

4 58 58 65 61 60 59 64 66 65 66 158.0 186.3 150.0 85.9 238.9 179.2 67.6 189.3 193.1 126.7 793$ 830$ 868$ 1,154$ 1,296$ 1,217$ 1,190$ 1,344$ 1,336$ 1,274$

5 58 63 66 62 64 62 67 66 67 68 227.0 236.7 399.7 125.1 908.6 189.2 86.9 308.7 1,132.6 571.1 872$ 911$ 1,138$ 1,214$ 2,056$ 1,280$ 1,262$ 1,473$ 2,308$ 1,764$

6 63 65 67 64 65 64 68 69 68 1,410.4 3,185.5 2,045.4 1,151.2 2,372.5 515.6 2,049.0 1,664.0 1,950.8 2,152$ 3,990$ 2,836$ 2,306$ 3,581$ 1,651$ 3,300$ 2,921$ 3,199$

7 66 65 69 65 67 64 67 68 68 3,171.5 3,395.3 4,911.0 2,729.9 3,873.0 1,652.2 2,004.9 1,917.6 2,700.7 3,972$ 4,212$ 5,815$ 3,949$ 5,162$ 2,822$ 3,238$ 3,165$ 3,972$

8 66 66 69 66 67 67 70 68 68 2,934.2 3,534.6 5,507.4 3,884.0 2,738.5 3,957.9 3,750.7 2,508.1 2,852.6 3,748$ 4,367$ 6,432$ 5,156$ 3,993$ 5,239$ 5,080$ 3,773$ 4,128$

9 66 67 69 66 67 67 69 69 68 2,991.5 5,401.0 5,209.8 3,874.6 3,752.9 3,300.4 3,273.6 2,988.4 2,757.6 3,807$ 6,300$ 6,125$ 5,146$ 5,038$ 4,572$ 4,579$ 4,265$ 4,030$

10 66 69 69 67 66 68 68 69 67 2,141.8 3,729.5 4,317.6 2,996.6 3,229.3 3,283.3 1,456.6 1,403.1 2,362.4 2,932$ 4,606$ 5,206$ 4,259$ 4,479$ 4,561$ 2,690$ 2,648$ 3,606$

11 65 68 67 64 62 68 69 69 68 788.1 1,448.6 1,680.5 1,531.5 625.5 923.8 1,077.1 582.2 1,003.6 1,526$ 2,236$ 2,468$ 2,697$ 1,729$ 2,142$ 2,317$ 1,807$ 2,224$

12 62 66 63 62 61 66 66 68 69 141.6 210.8 236.1 113.2 122.1 240.7 215.3 239.5 274.6 828$ 943$ 936$ 1,202$ 1,193$ 1,403$ 1,368$ 1,423$ 1,482$

62 64 67 63 63 64 67 67 67 66 14,348.1 21,694.4 25,004.0 17,071.5 18,082.4 14,475.3 14,233.5 12,092.2 15,560.3 1,056.0 22,918$ 30,695$ 34,532$ 30,579$ 31,923$ 28,241$ 28,657$ 26,471$ 30,058$ 6,837$

TotalsAverages

Customers Volume(x 1,000 cf)

Totals

Revenue

3,000.0

4,000.0

5,000.0

6,000.0

Fee

t x

1,00

0

VOLUME2000200120022003200420052006200720082009

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

1 2 3 4 5 6 7 8 9 10 11 12

Cu

bic

Fee

t x

1,00

0

Month

VOLUME2000200120022003200420052006200720082009

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE2000200120022003200420052006200720082009

Consumption Report 3 6/9/2009 3:55 PM

FORBESTOWN DITCH WATER CONSUMPTION: 2000 - 2009

Month 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 5 7 5 7 10 14 11 6 7 7 4.5 2.4 1.7 4.3 1.7 115.5 74.2 73.7 74.6 76.5 105$ 169$ 102$ 127$ 312$ 335$ 284$ 196$ 215$ 217$

2 5 5 5 8 9 12 10 6 7 7 2.3 2.4 1.7 3.1 0.8 99.2 34.5 66.5 66.5 67.3 102$ 168$ 102$ 278$ 293$ 290$ 222$ 196$ 214$ 214$

3 5 7 5 9 9 11 10 5 8 20 2.8 1.9 2.1 2.7 0.4 74.8 74.3 149.4 74.4 73.9 103$ 169$ 102$ 313$ 293$ 280$ 267$ 179$ 232$ 214$

4 13 9 7 9 10 10 10 7 7 7 15.1 4.3 14.6 2.5 26.8 72.8 71.4 123.0 101.9 88.3 513$ 244$ 151$ 295$ 338$ 268$ 266$ 267$ 245$ 231$

5 24 24 27 15 37 23 26 14 13 16 87.3 240.6 368.8 5.5 650.7 409.5 583.1 253.4 531.3 430.5 1,119$ 1,040$ 1,241$ 673$ 2,292$ 222$ 1,157$ 552$ 454$ 461$

6 36 45 39 38 48 36 42 30 28 721.3 1,291.0 1,083.5 896.5 2,164.7 1,359.0 1,873.7 896.1 1,664.7 2,135$ 2,909$ 2,503$ 2,724$ 4,210$ 2,229$ 2,862$ 1,581$ 1,532$

7 46 47 50 50 51 47 49 36 30 784.7 1,350.7 1,387.3 2,898.2 1,907.3 2,157.2 2,459.6 1,583.2 1,725.4 2,387$ 3,012$ 3,162$ 5,276$ 3,907$ 3,241$ 3,667$ 1,888$ 3,393$

8 52 48 46 47 54 53 53 37 36 1,483.7 1,530.4 2,207.7 2,829.6 2,885.7 3,009.0 2,863.3 1,810.4 2,299.0 3,205$ 3,243$ 3,299$ 5,013$ 4,597$ 4,301$ 4,205$ 2,014$ 2,178$

9 46 46 53 48 56 54 52 37 36 817.6 1,226.4 1,726.4 2,705.8 2,544.3 3,150.0 2,784.4 1,772.5 2,042.9 2,478$ 2,820$ 3,700$ 4,900$ 4,780$ 4,564$ 4,116$ 2,035$ 2,131$

10 38 42 41 29 44 43 44 20 20 392.3 606.2 1,688.6 1,419.9 1,370.4 1,785.5 1,480.9 726.4 918.5 1,352$ 1,543$ 3,202$ 2,374$ 3,147$ 2,817$ 2,373$ 784$ 962$

11 13 12 18 14 11 18 7 14 12 113.8 214.1 259.7 203.3 90.6 270.1 154.4 168.2 222.7 395$ 488$ 737$ 634$ 1,081$ 620$ 317$ 436$ 475$

12 5 5 10 12 22 14 8 8 8 6.5 4.4 3.7 2.1 474.9 89.5 74.6 148.3 75.4 230$ 170$ 249$ 392$ 973$ 353$ 904$ 316$ 233$

40 42 43 38 48 43 44 29 27 16 4,431.9 6,474.8 8,745.8 10,973.5 12,118.3 12,592.1 12,528.4 7,771.2 9,797.4 736.5 14,125$ 15,974$ 18,548$ 23,001$ 26,221$ 19,520$ 20,641$ 10,445$ 12,264$ 1,337$

Customers

Averages

RevenueVolume(x 1,000 cf)

TotalsTotals

2,000.0

2,500.0

3,000.0

3,500.0

c F

eet

x 1,

000

VOLUME2000200120022003200420052006200720082009

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

1 2 3 4 5 6 7 8 9 10 11 12

Cu

bic

Fee

t x

1,00

0

Month

VOLUME2000200120022003200420052006200720082009

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE2000200120022003200420052006200720082009

Consumption Report 4 6/9/2009 3:55 PM

BANGOR DITCH WATER CONSUMPTION: 2000 - 2009

Month 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 156 166 169 153 166 183 157 159 163 173 837.44 859.72 346.08 117.70 298.02 783.28 999.46 724.20 842.00 948.91 3,435$ 3,568$ 3,026$ 2,781$ 3,888$ 3,896$ 3,866$ 3,620$ 3,806$ 4,086$

2 153 143 168 171 164 163 155 157 158 164 303.18 361.76 293.68 266.06 154.00 663.21 844.31 669.71 631.89 818.69 2,803$ 3,020$ 2,961$ 4,122$ 3,650$ 3,729$ 3,730$ 3,556$ 3,541$ 3,835$

3 153 163 168 169 164 163 153 160 160 164 754.78 372.62 97.02 133.18 132.34 720.10 643.28 645.28 620.43 674.56 3,264$ 3,033$ 3,018$ 3,860$ 3,682$ 3,741$ 3,441$ 3,513$ 3,525$ 3,637$

4 160 165 174 168 178 170 152 171 173 179 461.80 487.16 431.74 187.56 522.04 708.38 605.38 1,176.41 1,402.61 909.53 3,265$ 3,206$ 3,219$ 4,034$ 4,479$ 3,904$ 3,400$ 4,332$ 4,559$ 4,102$

5 179 191 204 184 212 187 192 198 213 215 3,072.74 1,674.56 2,480.72 288.72 5,044.56 1,915.86 1,689.26 2,877.85 5,377.98 3,817.34 6,184$ 4,883$ 5,786$ 4,464$ 9,950$ 5,274$ 5,263$ 6,556$ 9,335$ 7,720$

6 200 211 216 212 219 212 217 223 217 6,947.80 8,703.04 6,959.76 4,964.58 7,615.46 4,708.74 6,759.58 13,677.09 8,852.45 10,482$ 12,439$ 10,641$ 9,842$ 12,741$ 8,689$ 11,012$ 18,261$ 13,123$

7 210 216 223 220 241 219 218 227 230 10,891.28 11,582.04 11,067.80 8,588.32 12,886.23 7,522.74 12,410.45 14,958.77 10,229.44 14,675$ 15,467$ 14,963$ 13,871$ 18,402$ 11,780$ 16,807$ 19,641$ 16,476$

8 213 219 227 220 229 226 222 227 226 9,182.30 11,999.64 10,774.98 11,602.54 11,088.18 9,961.04 14,843.95 18,647.25 11,273.23 12,941$ 15,918$ 14,707$ 16,675$ 16,533$ 14,425$ 19,431$ 23,465$ 15,758$

9 221 220 226 221 226 223 225 227 235 11,723.20 11,423.02 10,348.92 9,755.90 10,421.12 10,981.46 11,988.86 17,226.77 10,452.92 15,704$ 15,307$ 14,357$ 14,926$ 15,787$ 15,496$ 16,535$ 22,473$ 15,090$

10 202 215 219 216 216 221 218 213 223 8,352.52 7,999.32 8,768.44 9,115.18 7,235.44 7,757.52 7,617.21 8,000.91 8,021.02 11,923$ 11,707$ 13,508$ 14,196$ 12,207$ 11,990$ 11,845$ 12,099$ 12,319$

11 182 195 199 196 182 185 196 183 204 2,553.02 3,808.04 9,929.70 4,545.10 1,943.22 4,363.88 4,658.00 3,146.31 4,399.09 5,548$ 6,995$ 13,400$ 8,930$ 5,912$ 7,743$ 8,379$ 6,562$ 8,184$

12 171 173 178 172 176 165 174 175 180 690.56 537.32 718.90 548.50 1,022.73 1,286.40 1,106.82 1,342.71 978.35 3,438$ 3,261$ 3,510$ 4,298$ 2,930$ 4,314$ 4,119$ 4,500$ 4,239$

183 190 198 192 198 193 190 193 199 179 55,770.62 59,808.24 62,217.74 50,113.34 58,363.33 51,372.61 64,166.58 83,093.25 63,081.42 7,169.03 93,662$ 98,806$ 103,095$ 102,000$ 110,160$ 94,980$ 107,827$ 128,578$ 109,955$ 23,379$

Customers

Averages Totals

Volume(x 1,000 cf)

Revenue

Totals

10,000.00

12,000.00

14,000.00

16,000.00

18,000.00

20,000.00

Fee

t x

1,00

0

VOLUME2000200120022003200420052006200720082009

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

18,000.00

20,000.00

1 2 3 4 5 6 7 8 9 10 11 12

Cu

bic

Fee

t x

1,00

0

Month

VOLUME2000200120022003200420052006200720082009

$-

$5,000

$10,000

$15,000

$20,000

$25,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE2000200120022003200420052006200720082009

Consumption Report 5 6/9/2009 3:55 PM

PALERMO DITCH WATER CONSUMPTION: 2000 - 2009

Month 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 70 70 78 56 75 71 71 80 80 80 236.90 189.36 220.22 84.60 219.66 342.90 491.02 636.15 467.73 638.54 1,465$ 1,380$ 1,491$ 1,067$ 1,945$ 1,548$ 1,811$ 2,124$ 1,898$ 2,100$

2 67 70 76 73 72 68 69 79 76 78 97.27 187.48 230.52 148.02 208.66 519.50 426.59 586.00 466.70 474.43 1,384$ 1,370$ 1,435$ 1,746$ 1,881$ 1,828$ 1,728$ 2,095$ 1,860$ 1,932$

3 67 68 76 74 72 68 70 79 76 70 75.67 180.76 197.06 206.80 169.64 546.35 420.94 916.98 486.41 308.81 1,330$ 1,296$ 1,412$ 1,825$ 1,839$ 1,824$ 1,714$ 2,043$ 1,866$ 1,539$

4 81 73 86 76 72 68 69 89 150 79 965.60 354.76 417.56 275.42 444.95 549.72 422.94 973.82 4,331.96 593.43 2,982$ 1,600$ 1,766$ 1,976$ 2,126$ 1,838$ 1,689$ 2,636$ 7,122$ 1,991$

5 103 157 175 86 185 88 125 159 174 163 1,527.22 5,476.48 5,682.40 323.98 6,617.18 941.42 2,695.41 4,445.04 6,901.03 5,598.44 3,498$ 7,980$ 8,465$ 2,336$ 10,754$ 2,606$ 5,056$ 7,460$ 10,203$ 8,682$

6 175 191 205 196 199 175 188 202 205 7,030.98 8,965.98 8,406.36 8,581.26 8,260.96 6,450.06 8,099.80 9,103.04 10,264.94 10,768$ 12,111$ 11,617$ 12,902$ 12,650$ 9,832$ 11,800$ 13,087$ 14,335$

7 189 199 204 214 198 202 200 204 219 6,678.91 9,891.16 9,241.96 8,396.05 8,020.61 8,669.57 9,433.97 9,592.59 9,783.62 10,991$ 13,104$ 11,704$ 13,069$ 12,389$ 12,637$ 13,723$ 13,612$ 14,055$

8 196 206 215 219 206 209 263 201 207 7,681.16 9,890.66 9,912.98 11,834.39 7,764.92 10,344.43 8,680.54 9,372.64 10,238.86 12,577$ 13,227$ 13,375$ 15,693$ 13,173$ 14,545$ 12,901$ 13,326$ 14,322$

9 182 200 212 217 196 201 190 205 219 6,562.26 9,364.84 9,801.94 9,473.72 9,199.26 9,462.04 8,377.17 9,218.87 9,706.46 10,717$ 12,663$ 13,247$ 14,330$ 13,699$ 13,495$ 12,098$ 13,235$ 13,975$

10 154 169 187 173 172 165 166 144 163 2,805.99 4,944.42 6,665.24 5,406.14 4,468.28 5,425.76 4,780.99 2,900.42 5,106.18 5,972$ 7,664$ 9,642$ 9,324$ 8,331$ 8,640$ 7,957$ 5,544$ 8,194$

11 79 98 142 102 79 91 109 109 112 382.40 1,019.00 963.32 862.74 227.80 883.35 1,438.40 1,168.79 1,441.04 1,802$ 2,517$ 2,799$ 3,130$ 2,024$ 2,587$ 3,465$ 3,128$ 3,498$

12 74 79 76 84 75 75 82 85 90 121.03 301.30 197.90 272.54 539.79 538.60 619.19 594.79 632.75 1,408$ 1,597$ 1,236$ 2,203$ 1,171$ 1,938$ 1,445$ 2,111$ 2,251$

120 132 144 131 133 123 134 136 148 94 34,165.39 50,766.20 51,937.46 45,865.66 46,141.72 44,673.70 45,886.96 49,509.13 59,827.69 7,613.65 64,893$ 76,508$ 78,188$ 79,600$ 81,984$ 73,318$ 75,386$ 80,401$ 93,579$ 16,244$

Revenue

TotalsAverages

Volume(x 1,000 cf)

Totals

Customers

8,000.00

10,000.00

12,000.00

14,000.00

c F

eet

x 1,

000

VOLUME2000200120022003200420052006200720082009

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

1 2 3 4 5 6 7 8 9 10 11 12

Cu

bic

Fee

t x

1,00

0

Month

VOLUME2000200120022003200420052006200720082009

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

1 2 3 4 5 6 7 8 9 10 11 12

Month

REVENUE2000200120022003200420052006200720082009

Consumption Report 6 6/9/2009 3:55 PM

Consumption Report 7 6/9/2009 3:55 PM

5 SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Kathy Zancanella, Power Division Manager DATE: June 17, 2009 RE: General Information (regarding matters not scheduled on agenda) 6/23/09 Board of Directors Meeting Operations Attached is the Storage and Generation Report for May 2009. Also attached is a chart showing precipitation for the past year. The June thunderstorms produced an additional 0.63 inch of rain and Little Grass Valley and Sly Creek reservoirs are currently remaining near full. The 2008 water transfer to the State Water Contractors resulted in a determination by DWR that refill impacts occurred and that an additional 10,000 acre-feet will need to be spilled to Lake Oroville this year, over and above what would normally spill. PG&E prepared two model runs for operations of the South Feather Power Project in 2009. One provides the end-of-month storage targets, powerhouse operations schedules and expected spills at Ponderosa under “normal” conditions, with an end-of-year combined storage target of 60,000 AF in Little Grass Valley and Sly Creek. The other provides a monthly schedule that will provide an additional 10,000 AF of spill and an end-of-year storage target of 50,000 AF in the two upper reservoirs. The second case will be used for the remainder of this year’s operations. Preparation for New PG&E Contract Now that the Board has approved the new ten-year Power Purchase Agreement with PG&E, there are a number of activities that need to occur to implement the contract provisions. Already completed in late May was registration of Woodleaf and Forbestown powerhouses with the Western Electric Coordinating Council (WECC), a regional compliance organization under the North American Electric Reliability Corporation (NERC). The compliance documentation for WECC is already in place. Next steps include registering with the Climate Action Registry, which will track the Agency’s emissions; registering with the Western Renewable Energy Generation Information System (WREGIS) which will track the renewable energy credits produced by Sly Creek and Kelly Ridge; obtaining certification by the California Energy Commission of the renewable facilities; and negotiating agreements with the California Independent System Operator (CAISO).

The CAISO requires several agreements: 1) a Participating Generator Agreement, 2) a Meter Service Agreement, 3) a Large Generator Interconnection Agreement for Woodleaf and Forbestown, 4) a Small Generator Interconnection Agreement for Sly Creek and Kelly Ridge, and 5) an Affidavit certifying that the electrical characteristics of the powerhouses haven’t changed and that no new interconnection studies are required. The CAISO also requires direct telemetry of the facilities, so a Data Processing Gateway device may need to be installed, which will require that an additional communication circuit also be installed. Once the various registrations and agreements have been negotiated, they will be submitted for Board approval prior to execution. Maintenance Projects Forbestown Diversion Trash Rake Commissioning The Forbestown Diversion trash rake is finally functioning, after several issues that needed to be corrected by the manufacturer’s representative. Some additional work by PG&E on the 2.3 kV line to the dam will also be required to correct a problem involving excessive voltage drop. There will be a video of the operation of the trash rake shown at the Board meeting, and a demonstration will be run during the tour on Thursday. Road Work The crew, led by equipment operator Joe Gibson, spent part of the week of June 15 patching holes on Barton Hill (Sly Creek) Road, to improve the condition for the recreating public that drives it. The Forest Service has had plans for a couple of years to bring in a Durapatch machine to work on the entire road, but has yet to do so. Joe and utility worker Gary Daley also plan to do quite a bit of work to improve the condition of the road that extends from Lost Creek Dam along Pinkard Creek to Lewis Ridge Road, as this will be the primary access route for our employees once the Sly Creek Dam construction starts next spring. General Information Employee Milestone On June 3, a barbeque lunch was held to celebrate Henry Reeson’s 25 years with the Agency. Henry started working as a full-time employee in the Water Division on April 30, 1984. He held the classifications of Meter Reader, Ditch Tender and Equipment Operator while there. He came to the Power Division in September 1997 as a Heavy Tractor Driver, and then entered the Electrical Machinist apprenticeship program in May 2000, reaching journeyman status in November 2002. Henry also serves as the IBEW shop steward for the Hydropower Generation Employees Unit.

Communication Sites The Forest Service requires annual “self-inspection” photo documentation of sites authorized by special use permits, including the Agency’s communications sites. Since you might not have the opportunity to visit these sites, I thought I would share a couple of photos of the newest reflector site at Pike County Peak. Views from the site include Bullards Bar Reservoir to the south and Bald Rock to the north. Please note that the orange color of the reflector was chosen by the Forest Service.

Sunset Hill Tower

POWER DIVISION MANAGER'S REPORT FOR 6/23/09 BOARD MEETING

RESERVOIR

Little Grass Valley 89,804 AF 85,037 AF 73,707 AF

Sly Creek 64,338 AF 58,689 AF 60,095 AF

Lost Creek 5,361 AF 4,576 AF 4,942 AF

Forbestown Diversion 352 AF 320 AF 307 AF

Ponderosa 4,178 AF 3,333 AF 3,520 AF

Miners Ranch 896 AF 675 AF 721 AF

TOTAL 164,929 AF 152,630 AF 143,292 AF

Slate Creek Tunnel 800 CFS 80 CFS 113 CFS

South Fork Tunnel 600 CFS 31 CFS 25 CFS

Miners Ranch Canal 303 CFS 218 CFS 245 CFS

YEAR TO DATEON 5-31-09

Woodleaf P.H. 30,806,730 KWH 102,510,170 KWH 63,130,440 KWH

Forbestown P.H. 21,284,530 KWH 65,325,450 KWH 39,984,120 KWH

Kelly Ridge P.H. 7,345,991 KWH 30,150,568 KWH 28,970,933 KWH

Sly Creek P.H. 5,781,700 KWH 14,940,200 KWH 6,564,900 KWH

TOTAL 65,218,951 KWH 212,926,388 KWH 138,650,393 KWH

SOUTH FEATHER WATER AND POWERSOUTH FEATHER POWER PROJECT

May 2009STORAGE

ON 5-31-08

MONTHLY NET GENERATION

MAXIMUMCAPACITY

YEAR TO DATE

STORAGE

FORMay 2009

ON 5-31-08STORAGEON 5-31-09

0

10

20

30

40

50

60

70

80

90

100

July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June

Inch

es

South Feather Power Project - Forbestown Precipitation

85 Year Avg.

2005-2006

2006-2007

2007-2008

2008-2009

92% of average

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Matt Colwell, Water Division Manager DATE: June 11, 2009 RE: General Information (regarding matters not scheduled on agenda) 6/23/09 Board of Directors Meeting Water Distribution Operations

Water Division staff have been accomplishing water system maintenance and normal operations tasks. Ongoing projects include irrigation and domestic distribution system betterments, new service installations, and leak repairs. Sand Complaints – It appears that the Kelly Ridge Road mainline interconnection project (2008) has redirected the flow patterns in the high-service pumped-distribution system (different from the gravity system) enough to have created an unanticipated problem. Field crews have notice an inordinate amount of sand in the system and also there have been a few customer complaints about sand in their services. Investigation of the problem has concluded that operational problems with the old sand filter used at ID1 (20± years ago) injected large quantities of filter media into the distribution system. Over the years most sand has been flushed out but, apparently, significant quantities have accumulated in the water mains running through steep swales. The redirected flow patterns and velocity changes have shifted the settled sand and it is now showing up in the vicinity of Greenbrier Drive in Kelly Ridge Estates. Staff has been performing has been flushing services and mainlines to address the problem and it appears that most of the old filter media has been flushed out of the system. Lone Tree Road Mainline Break – Water distribution crews were called out at 5:30 p.m. on June 10th and found a major pipeline failure on Lone Tree Road and Lone Tree Court. This is an old section of 8” AC pipe with very high pressure and the tee section blew out damaging the road. Crews completed the repairs by 11:30 p.m. with minimal disruption to the remainder of the system and customers. The Agency’s experienced and dedicated staff is to be commended for the rapid repair and maintaining superior customer service around the clock.

Miners Ranch Water Treatment PlantMonthly Water Production VS: KWH Purchased

-100

-50

0

50

100

150

200

250

300

350

400

Jul-0

2O

ct-0

2Ja

n-03

Apr-

03Ju

l-03

Oct

-03

Jan-

04Ap

r-04

Jul-0

4O

ct-0

4Ja

n-05

Apr-

05Ju

l-05

Oct

-05

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Question At Last Board Meeting – An issue at the May board meeting was presented by Ms. Smart concerning the lack of water in the natural swale feeding her pond and irrigation system. Attached is a copy of the response that was sent Ms. Smart and her son as a result of the subsequent investigation. Irrigation System Releases – Forbestown Ditch SF 14 = 13 cfs

SFWPA = 10 cfs NYWD = 3 cfs

Bangor Canal SF 25 = 8 cfs Palermo Canal = 8 cfs

Water Treatment Operations All bacteriological requirements were met for the Miners Ranch Treatment Plant, Bangor Treatment Plant, Sly Creek Campground and Strawberry Campground. The 2009 cumulative MRTP water production through May is approximately 96% of the recent 5 year average.

Solar Plant Production The monthly power consumption exceeded the solar power production by 21,000 KWH during the month on May. The graph below provides a historical perspective of energy consumption compared to water production.

Miners Ranch Production

May 2009

Total 176.0 Million Gallons

High 7.5 MGD Low 2.7 MGD Avg. 5.7 MGD

MRTP Total Annual Water Production

0

327

504

125

198

690

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC

MIL

LIO

NS

OF

GA

LL

ON

S

5 Year Avg Cummulative2005 (min)1997 (max)2006200720082009

Water Division Status Report Matt Colwell Water Division Manager

2005 Minimum

1997 Maximum

Average

A Public Agency formed pursuant to Water Code § 20500 et seq. Formerly: Oroville-Wyandotte Irrigation District

2310 Oro Quincy Highway, Oroville California 95966 530.533.4578 www.southfeather.com

June 2, 2009 Everett Smart and Dolly Smart 351 Mount Ida Road Oroville, California 95966 Dear Mr. Smart and Ms. Smart Thank you for taking your time to share with the Board of Directors and management of South Feather Water & Power Agency your concern regarding decreasing water flowing through your property at the above address. I have taken the opportunity to inspect the area and have concluded that there is likely a decreasing amount of uncontrolled irrigation system seepage from the Agency’s Palermo Canal located to the east of your property and east of Oakvale Avenue. Periodically, SFWPA performs routine irrigation-system maintenance with the objective to more efficiently distribute water throughout the system. This maintenance includes aquatic weed abatement, mechanical ditch cleaning, and leak repairs. In the winter and early spring of 2009 our crews performed maintenance work on the Palermo Canal east of Oakvale Avenue. This maintenance likely reduced (but not eliminated) the uncontrolled spills of the Palermo Canal that have previously reached your property by way of a natural channel. Water management in California will continue to be highly scrutinized by regulatory agencies and uncontrolled spills, leaks, and seepage that reduces efficiency could possibly subject the Agency to punitive action in the future. SFWPA has ample water available for its customers, and we would be happy to provide you an estimate of cost to install a service for you to ensure that your water needs are met. Sincerely, South Feather Water and Power Agency Matt Colwell c: Board of Directors Michael Glaze, General Manager

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Michael Glaze, General Manager DATE: June 16, 2009 RE: General Information (regarding matters not scheduled on the agenda) 6/23/09 Board of Directors Meeting Suspension of Prop 1A Promised by Governor As reported last month after the state-wide special election, voters rejected the slate of budget propositions that were proposed by the governor and legislature as part of the 2009-10 state budget. Thereafter, local governments across the state began preparing for the loss of property tax revenue that would result from the governor’s promised suspension of Prop 1A and borrowing $2 billion from property tax revenues to help close the state’s $24.3 billion budget deficit. Under Proposition 1A, passed in 2004, the state can borrow 8% from special districts, cities and counties, but must repay the funds, with interest, within three years. Notwithstanding this constitutional limit to borrowing local property tax revenue, the state’s legislative analyst has suggested taking more than 25% from water and wastewater districts because they can raise rates to recoup the money. After the budget propositions were defeated in the special election, associations representing special districts, cities and counties aggressively organized a campaign against the proposed Proposition 1A suspension. On June 15, the legislative budget conference committee voted to reject the proposal to borrow property tax revenue from local governments. Unfortunately, the $24 billion deficit is still standing between the legislature and a budget for 2009-10, and there seems to be no willingness on its part to spend within its means. Relicensing FERC has issued its Final Environmental Impact Statement and recommended most of the Alternative Conditions proposed by SFWPA, including SFWPA’s minimum instream flows (rather than those proposed by the U.S. Forest Service). Agency consultants are beginning to gear up to accomplish the CEQA processing in preparation for acquiring the required water quality permit from the State Water Resources Control Board. A best guess as of today is that the new license is still probably a year away.

Annual Facilities Tour At this writing, 50 guests have confirmed they will be attending, making this year’s tour one of the largest in recent memory. This will be a great opportunity for directors to mingle and connect with community members and regulatory staff from various agencies. Remember, this is our primary public-relations effort for the year, and directors are the Agency’s ambassador corps. Make us proud.

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Michael Glaze, General Manager DATE: April 27, 2009 RE: Independent Auditor’s Contract 6/23/09 Board of Directors Meeting In August 2006 a request for proposals (RFP) for independent auditing services was sent to the following seven firms:

Boler & Associates (Davis); Davis Hammon & Company (Oroville);

Gilbert Financial Services (Sacramento); Matsom & Isom (Chico):

Richardson & Company (Sacramento); Robert Johnson, CPA (Citrus Heights); and,

Tittle & Co. (Chico). The only response to the RFP was from Davis Hammon & Co. stating that they had decided not to submit a proposal due to the “rapid development and growth of other areas” of their accounting practice. In follow-up phone calls, several of the other firms stated that they decided not to submit a proposal because they assumed Davis Hammon & Co. would win the bid again because of their long-term relationship with the Agency. The RFP was again sent out with an amendment that informed interested companies that Davis Hammon & Co. would not be in consideration for the reasons given in their letter. The following eight firms received the second-round RFP:

Bartlett, Pringle & Wolf, LLP (Santa Barbara); Hathaway & Ksenzulak, LLP (Redding):

Mann, Urrutia, Nelson & Associates, LLP (Sacramento); Matsom & Isom (Chico);

Michael Hinz, CPA (Yuba City); Moss, Levy & Hartzheim (Sacramento); Richardson & Company (Sacramento);

Smith & Newell, CPA (Yuba City).

Two firms responded to the second-round RFP: Mann, Urrutia, Nelson & Associates, and Richardson & Company. The three-year-contract cumulative fee proposed by each of the two firms was: Mann, Urrutia, Nelson & Associates $54,200 Richardson & Company $94,000 In November 2006 the Board awarded a contract to Mann, Urrutia, Nelson & Associates, LLP to perform the Agency’s annual independent audit for the years ending December 31, 2006 through 2008. With yesterday’s acceptance of the audit report for 2008 by the Board, Mann, Urrutia, Nelson & Associates, LLP has completed its three-year contract. Given the limited number of firms responding to the RFP last time around, and given the quality work and qualifications of Mann, Urrutia, Nelson & Associates, they were asked to submit a proposal for extending the just-completed contract for an additional three years. Their proposal is attached with a cost of $21,500 annually ($64,500 cumulative). Steve Wong, the Finance Committee and I are recommending the following action:

“I move acceptance of the proposal from Mann, Urrutia, Nelson & Associates, LLP to extend the previously-approved audit contract, and authorization for them to perform the Agency’s annual independent audit for the years ending December 31, 2009 through 2011, in accordance with their proposal.”

ROSEVILLE OFFICE

290 I Douglas Boulevard, Suite 290

Roseville, CA 95661

TEL 916774-4208

FAX 916 774-4230

April 16, 2009

Mr. Steven WongSouth Feather Water & Power Agency2310 Oro-Quincy HwyOroville, CA 95965

Dear Steven:

MANNURRUTiANELSON

CPAs

ASSOCIATESLLP

SACRAMENTO OFFICE

2515 Venture Oaks Way. Suite 135

Sacramento, CA 95833

TEL 916 929·0540

FAX 916-929-0541

Enclosed is an addendum to our original proposal, extending our services to 2009, 2010 and 2011. It isour understanding we will continue to provide the scope of services previously stated in the originalproposal:

1. Audit the financial records and accounts of South Feather Power & Water Agency in accordancewith generally accepted auditing standards and Government Auditing Standards.

2. Prepare Government-Wide financial statements, Fund financial statements, ManagementDiscussion and Analysis, and notes to financial statements in accordance with GASB No. 34.

3. Prepare Management Letter, if necessary.

4. Prepare and submit Annual State Controller's Report.

The audits will be conducted in accordance with auditing standards generally accepted in the UnitedStates of America and the standards for financial audits contained in Governmental Auditing Standards,issued by the Comptroller General of the United States, and the State Controller's Minimum AuditRequirements for California Special Districts, and will include tests of the Agency's accounting records andsuch other auditing procedures as might be considered necessary for the expression of an audit opinion.

Despite an increase in the scope of audit procedures for the upcoming years related to theimplementation of GASB 45 and the renegotiation of the future power-purchase agreement, our fees haveonly increased slightly for the 2009, 2010 and 2011 audits. Please see the engagement terms section of thisaddendum for more detail.

Thank you for your consideration.

Sincerely, ,

9!:~~1::Partner

PRINCIPALS

Chris A. Mann. CPA. CFp· John R. Un-utia. CPA. Michelle O. Nelson, CPA, CFE, CVA • Christine L. Collins. EA

Kriss Ann Mann. CPA CCPS • Justin J. Williams, CPA

PROPOSAL TO PROVIDE AUDIT SERVICES April 15, 2009

2515 Venture Oaks, Suite 135 Sacramento, CA 95833 TEL (916) 929-0540 FAX (916) 929-0541 www.muncpas.com

Contact Person: Justin J. Williams, CPA, CVA Partner jjw@muncpas.com

Mission Statement

To provide responsive, innovative services of the highest quality to our clients; and to provide a positive, rewarding environment encouraging our employees to fulfill their professional and personal goals.

South Feather Water & Power Agency 2310 Oro-Quincy Hwy ♦ Oroville, CA 95965

TABLE OF CONTENTS

Description Page

Scope of Services

1

Profile of Mann, Urrutia, Nelson, CPAs

2 - 3

Audit Qualifications

4

Audit Client List

5

Terms of Engagement

6

1

SCOPE OF SERVICES

1. Audit the financial records and accounts of South Feather Water & Power Agency in accordance

with generally accepted auditing standards and Government Auditing Standards.

2. Prepare Government–Wide financial statements, Fund financial statements, Management Discussion and Analysis, and notes to financial statements in accordance with GASB No. 34.

3. Prepare Management Letter, if necessary.

4. Prepare and submit Annual State Controller’s Report.

The audits will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States, and the State Controller’s Minimum Audit Requirements for California Special Districts, and will include tests of the Agency’s accounting records and such other auditing procedures as might be considered necessary for the expression of an audit opinion.

2

PROFILE

MANN, URRUTIA, NELSON, CPAS & ASSOCIATES, LLP

Locally established and respected accounting and auditing firm, the partners of Mann, Urrutia, Nelson, CPAs and Associates, LLP have:

• Over 100 years combined experience in tax, audit and accounting.

• More than 2,000 clients • 25 employees

We have 6 partners with a wide range of expertise. The auditing staff is comprised of 10 professionals─ specializing in providing auditing, accounting, consulting and supervisory auditing services throughout the State of California. Each member of the staff is individually trained to ensure quality and personal service to each of our clients. Mann, Urrutia, Nelson, CPAs and Associates, LLP has office locations in Sacramento and Roseville, California. Audit engagements are performed out of the Sacramento location. 2515 Venture Oaks Way, Suite 135 2901 Douglas Boulevard, Suite 290 Sacramento, CA 95833 Roseville, CA 95661

CERTIFICATION Mann, Urrutia, Nelson, CPAs and Associates, LLP is a properly licensed, minority owned, certified public accounting firm in the State of California. All certified public accountants involved in audit engagements of the Firm are licensed to practice in the State of California and have received at least the minimum number of continuing professional education hours required by the State Board of Accountancy and American Institute of Certified Public Accountants.

INDEPENDENCE

Mann, Urrutia, Nelson, CPAs and Associates, LLP is independent of South Feather Water & Power Agency as defined by U.S. generally accepted auditing standards and Government Auditing Standards.

3

PROFILE, CONTINUED SERVICES PROVIDED

In addition to audit services, Mann, Urrutia, Nelson, CPAs and Associates, LLP provides the following services to our clients:

• Fraud investigations – Agreed-upon procedures developed by a Certified Fraud Examiner.

• Budget Review – Assistance with preparation and/or review of annual budgets.

• Internal Control Evaluation – Agreed-upon procedures to perform extensive review and testing of internal control process with recommendations for improvement.

• Information technology – Evaluation and implementation of accounting software.

EQUAL OPPORTUNITY EMPLOYER

We do not discriminate against any individual because of race, religion, sex, color, age, handicap or national origin, and we affirm that these will not be a factor in consideration for employment, selection of training, promotion, transfer, recruitment, rates of pay, or other forms of compensation, demotion or separation.

COMPUTER AND SOFTWARE CAPABILITIES

We have all necessary computer and software capabilities, along with the technical knowledge specific to audit performance. We utilize paperless audit software that increases audit efficiency by enabling electronic exchange of information between the audit team and the Agency’s staff. We believe our unique combination of technical expertise, auditing, and accounting capabilities, along with our philosophy of total service, provides our clients the highest quality audit and accounting performance available.

4

AUDIT QUALIFICATIONS

MANN, URRUTIA, NELSON, CPAS AND ASSOCIATES, LLP The team assigned to perform agreed-upon procedures with the South Feather Water & Power Agency will meet all expectations of each engagement and will provide a level of service desired and deserved by the engagement. The technical qualifications of Mann, Urrutia, Nelson, CPAs and Associates, LLP personnel selected for this engagement ensure service of the highest quality. Engagements at Mann, Urrutia, Nelson, CPAs and Associates, LLP, are conducted under the supervision of an engagement partner and manager, which assures that quality standards are maintained and all client requirements are met.

PROPOSED TEAM

We propose the following audit team:

Justin J. Williams, CPA, CVA, Engagement Partner Michelle O. Nelson, CPA, CFE, CVA, Concurring Partner Erica K. Pastor, CPA, Manager Dustin S. Cassady, CPA, Senior Accountant

This small, efficient working group will maintain a knowledgeable, yet non-intrusive, approach to the engagement, and in this way, deliver services of exceptional quality requiring few disruptions in the conduct of the Agency’s on-going operations. Our Firm’s commitment to work/life balance has contributed to low turnover of employees which allows us to maintain high quality and consistency in our engagements.

GOVERNMENTAL EXPERIENCE

Our proposed team has extensive experience in providing audit and consulting services to our governmental clients. Our extensive governmental practice has provided us the opportunity to perform many single audits in accordance with A-133. Through their experience at Mann, Urrutia, Nelson CPAs and other CPA firms the partners and managers have assisted over one hundred governmental entities in the implementation of GASB 34 reporting requirements. We have close relationships with our clients and we encourage regular communications throughout the year, not just during fieldwork. We routinely receive phone calls from our clients asking for assistance with accounting and business matters. In addition to being our clients’ auditor, we strive to be a trusted business advisor.

GOVERNMENTAL EXPERIENCE

In compliance with the American Institute of Certified Public Accountants (AICPA), our firm administers a program to ensure that all professional staff members meet continuing professional education (CPE) requirements.

Mann, Urrutia, Nelson CPAs & Associates, LLP is a voluntary member of the AICPA’s Government Audit Quality Center. This firm-based voluntary membership center provides us with a broad array of resources that helps us enhance the quality of our governmental audits.

5

AUDIT QUALIFICATIONS,

CLIENT LIST, PARTIAL

Governments and Special Districts Retirement Audits

South Feather Water & Power Agency Dolan's Building Materials, Inc.

City of Pinole Bytheway's Manufacturing, Inc.

Town of Windsor Lionakis Beaumont Design Group, Inc.

City of Patterson Dunmore Homes, LLC City of Rio Dell Schools Financial Credit Union

Town of Moraga Sugar Bowl Bakery City of Dixon Monarch Plumbing, Inc. City of Hollister DocVentures, LLC San Joaquin Regional Transit District

Cortina Band of Wintun Indians Roseville Cemetery District

Ironhouse Sanitary District

Robla School District Non - Profit Alameda County Waste Management Authority

Sacramento-Yolo Mosquito and Vector Control District Rural Community Assistance Corporation

Woodland Healthcare Foundation Placer Land Trust

PEACE for Families

Sacramento Cottage Housing, Inc.

Yolo Wayfarer Mission

Sacramento Public Library Foundation Boys & Girls Club of South Lake Tahoe Sierra Senior Services California ReLeaf Chez Panisse Foundation California Rice Commission California Rice Industry Association

6

Period Covered by Agreement

This agreement will extend services to years ended June 30, 2009, 2010, and 2011. Audit programs, workpapers and reports will be retained for a period of seven (7) years after the completion of each audit and made available for inspection by the Agency or outside auditors if requested.

Fee for Services

Additional Professional Services Mann, Urrutia, Nelson, CPAs and Associates, LLP may also furnish other accounting services, which may include advisory and system accounting services as requested by the Agency. If it should become necessary for the Agency to request Mann, Urrutia, Nelson, CPAs and Associates, LLP to render any additional services to either supplement the services requested to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between the Agency and Mann, Urrutia, Nelson, CPAs and Associates, LLP. Any such additional work agreed to between the Agency and Mann, Urrutia, Nelson, CPAs and Associates, LLP shall be performed at rates listed below:

Hourly Rates

$ 225

160

135

105

60

Supervisor/Senior Accountant

Staff Accountant

Admin

Classification

Partner

Manager

2009 2010 2011

All-inclusive fee for items listed in Scope of Services for South Feather Water & Power Agency

$ 21,500

$ 21,500

$ 21,500

TERMS OF ENGAGEMENT

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Kathy Petersen, Power Division Manager DATE: June 15, 2009 RE: Sunset Hill Telecommunication Lease with DigitalPath Inc. Agenda Item for 6/23/09 Board of Directors Meeting In September 2007 the Board approved a lease agreement with DigitalPath, Inc. for use of the tower and public room at Sunset Hill. Since that time they have expanded their service area and have added additional antennae and equipment. They plan to have a total of 20 antennae, dishes or panels at full build-out at the site. The original lease agreement needs to be amended to reflect the equipment that is now installed at the site. The proposed amendment is attached for review and the recommended form of action is:

“I move approval of the Sunset Hill Communication Lease Agreement between South Feather Water and Power Agency and DigitalPath, Inc., as amended, and authorization for the General Manager to execute said agreement.”

SUNSET HILL COMMUNICATION LEASE between

SOUTH FEATHER WATER AND POWER AGENCY and

DIGITALPATH, INC.

WHEREAS, South Feather Water and Power Agency, hereinafter called “Landlord,” has under its possession and control a public communication room and antenna tower for various communication facilities located upon that certain mountain top known as Sunset Hill, in the county of Butte, State of California; and WHEREAS, possession and control by Landlord is based upon, and subject to, the terms of Landlord’s “Communications Use Lease” with the United States Department of Agriculture, Forest Service (USFS), dated May 9th, 1997 (hereafter “the Master Lease.”) WHEREAS, DigitalPath, Inc. requested on July 25, 2007 to occupy space in the public communication room, hereinafter called the “Tenant’s Room”, and on the antenna tower structure; and NOW THEREFORE, Landlord and DigitalPath, Inc. agree to a Sunset Hill Communication Lease under the following terms and conditions:

1. LEASE: Landlord leases to DigitalPath, Inc. wall space in said Tenant’s Room, and space upon said antenna tower for the installation, operation and maintenance of radio frequency (RF) communication equipment in the location and manner described in article 7 and article 11 herein.

2. TERM AND TERMINATION: The term of this lease shall be five (5) years, commencing on September 1, 2007, and terminating on August 31, 2012, providing that either party may terminate this lease at an earlier date without cause by giving notice in writing to the other of not less than 90 days. Upon termination or expiration of this lease, DigitalPath, Inc. shall remove all facilities installed on the leased premises by DigitalPath, Inc. and surrender the leased premises in as good condition as when DigitalPath, Inc. first took possession hereunder, reasonable use, wear and tear excepted, and Landlord will refund the unearned portion of any rent DigitalPath, Inc. has paid in advance.

This lease may be terminated by DigitalPath, Inc., with no further liability, if

DigitalPath, Inc. is unable to secure the necessary licenses, permits or other required authorization from the federal Communications Commission or any other body having authority over DigitalPath, Inc.’s operation at the premises. This lease may also be terminated by DigitalPath, Inc. with no further liability within sixty (60) days of start of lease if:

(a) Interference/Noise from other equipment at the site does not allow a reliable connection to be established, or; (b) Microwave link is unable to be obtained from the proposed location.

Sunset Hill Communication Lease – DigitalPath, Inc. Page 1 of 7

3. RENT: Subject to the provisions of Paragraph 20, DigitalPath, Inc. agrees to pay annual rent in advance to Landlord, as follows: a. Vault space @$450.00 /space $ 450.00 b. Space on tower @$220.00 /antenna or panel $ 4,400.00 c. Road maintenance (see article 9) $ 450.00 TOTAL $ 5,300.00

4. RENEWAL OPTIONS: DigitalPath, Inc., at its option, may extend the term of this lease for one (1) additional period of five (5) years, by written notice to Landlord at least thirty (30) days prior to the expiration of the initial term.

5. ELECTRICAL SERVICE: DigitalPath, Inc. understands that utility 120/240 volt AC power is supplied to Tenant’s Room, and said utility power is metered by a separate power meter owned and maintained by PG&E. No standby power, AC or DC, continuous or otherwise, is available to any equipment presently installed in Tenant’s Room, or any future installation(s) of equipment in Tenant’s Room. DigitalPath, Inc. agrees to supply any and all necessary standby power; AC or DC, to any DigitalPath, Inc. installed and maintained equipment now in use, and any and all future DigitalPath, Inc. equipment installation(s).

6. OPERATION: DigitalPath, Inc. shall install, operate, and maintain its radio communication equipment in accordance with the highest engineering standards now or hereinafter employed in the industry and in accordance with all applicable laws and regulations of the Federal Communications Commission or any other governmental agency having control or regulation over such operations. In the event that DigitalPath, Inc.’s installation, operation, or maintenance of its equipment shall create any interference with the operations of Landlord’s equipment, DigitalPath, Inc. shall, at its own expense, take such reasonable steps as may be recommended by Landlord to eliminate such interference. In case of DigitalPath, Inc.’s inability or refusal to eliminate such interference, Landlord may terminate this lease and DigitalPath, Inc. shall promptly remove its equipment and antennas from the leased premises.

7. FREQUENCIES and ANTENNAS: DigitalPath, Inc. shall a. Transmit and receive only on the following frequencies and shall not change

or add to these frequencies without the written consent of Landlord. Frequency Range: 5.3 GHz (5.26 – 5.325 GHz) and 5.8 GHz (5.725 – 5.815 GHz); and 11 GHz licensed frequency. b. Maintain its antennas and panels upon said tower at the elevations (above

ground level) shown below:

Sunset Hill Communication Lease – DigitalPath, Inc. Page 2 of 7

ANTENNA TYPE ELEVATION LEG 2 -2 ft. 5.8 GHz 29 DB Dish 90 feet AGL West 2 -14.5” x 7” x 2.5” Sector Panel 90 feet AGL West 2 -14.5” x 7” x 2.5” Sector Panel 90 feet AGL South 2 - 8” x 8” x 3” panel pointing NW 90 feet AGL West 2 - 8” x 8” x 3” panel pointing SW 90 feet AGL South 2 - 2’ parabolic antennas 140 feet AGL East 1 – 12” x 12” panel 140 feet AGL East 7 – Additional antennae or panels to be determined in the future.

8. MAINTENANCE: DigitalPath, Inc. shall maintain in good order, condition and

repair, except for reasonable use and wear, that part of the premises used solely by DigitalPath, Inc. If Landlord deems, and repairs or maintenance or cleanup is necessary, it may demand that DigitalPath, Inc. make them immediately, in writing; if DigitalPath, Inc. refuses or neglects to commence such repairs within thirty (30) days, and complete them, Landlord may cause such repairs to be made and DigitalPath, Inc. shall immediately, on demand, pay Landlord the cost of the repairs. Landlord shall be responsible for the maintenance of the roof and building structure of the Tenant’s Room.

9. ACCESS ROAD: Inasmuch as DigitalPath, Inc. proposes to use Sunset Hill Road in order to obtain access to the premises leased hereunder, Landlord is obliged to maintain and keep said road in good condition. DigitalPath, Inc. agrees to pay Landlord $450.00 as an estimated pro rata share of the annual expense of such maintenance during the term of this lease.

10. SITE SECURITY: Landlord shall issue DigitalPath, Inc. the keys necessary to access Tenant’s Room. Upon termination of this lease, DigitalPath shall return all keys to Landlord. Upon execution of this Agreement, and at any time during the life of this Agreement as needed, DigitalPath, Inc. shall deliver to Landlord all keys and/or combinations necessary to allow Landlord access to DigitalPath, Inc.’s equipment for the purpose of inspecting DigitalPath, Inc.’s equipment.

11. MAINTENANCE AND OPERATION: DigitalPath, Inc. shall install and maintain one (1) wall mounted control panel for its proprietary wireless radio equipment in the Tenant’s Room. The DigitalPath, Inc. installed coaxial transmission lines shall be attached to the east waveguide ladder on the tower. The DigitalPath, Inc. installed and maintained 5.8 GHz 29DB Dishes shall occupy the ninety (90) foot level of the west tower leg, and the DigitalPath, Inc. installed and maintained Sector Panels and Panels pointing North West shall occupy the ninety (90) foot level of the West tower leg, and the DigitalPath, Inc. installed and maintained Sector Panels and Panels pointing South West shall occupy the ninety (90) foot level of the South tower leg. The parabolic antennas

Sunset Hill Communication Lease – DigitalPath, Inc. Page 3 of 7

shall occupy the ninety (90) foot level of the East tower leg. Plans and specifications for improvements to be installed by DigitalPath shall be provided to Landlord for its reasonable review and approval prior to installation. No additional facilities will be installed by DigitalPath without the written agreement of Landlord.

DigitalPath, Inc. shall install all components of the proprietary wireless radio equipment in a workmanlike manner under the supervision of Landlord. On May 13, 2008, DigitalPath, Inc. installed three (3) additional two (2)-foot parabolic antennas, one on the West leg and two on the East leg at 150 feet above ground level. In May, 2009, DigitalPath installed another five (5) panels and dishes for a total of thirteen (13) antennas, dishes and panels. Digital Path, Inc. plans to eventually install an additional seven (7) antennae or panels for a total build out of 20 devices on the tower. 12. USE: DigitalPath, Inc. will comply with all laws, ordinances, and regulations respecting DigitalPath, Inc.’s occupancy of the premises or their use, specifically including rules and regulations of the Federal Communications Commission, the State of California and Butte County and shall not use or permit use of the premises for any purpose other than the operation of its radio communications equipment. DigitalPath, Inc. shall be responsible for obtaining necessary permits and/or licenses for operation of its radio from the federal Communications Commission. DigitalPath, Inc. agrees that the installation of any radio equipment, licensed or unlicensed, will not cause harmful interference to existing radio users at the site. If any interference is reported to Landlord or to an existing site user, the interference shall be corrected within five (5) days or transmission will cease until the interference is corrected. 13. HAZARDOUS MATERIALS: Landlord agrees to indemnify and hold harmless DigitalPath, Inc., it successors and assigns, from any and all liability, loss or expense (including attorney’s fees), whether now existing or arising, in connection with any federal or state statute, law, ordinance, regulation or judgment related to the storage, disposal or release of contaminants or pollutants on said premises by Landlord. Landlord warrants and represents that to its knowledge, no hazardous materials, including asbestos, have been disposed of or placed on the property. Save and except for Landlord’s indemnity for Landlord’s storage, disposal, or release of contaminants or pollutants on said premises by Landlord, DigitalPath, Inc. will indemnify and hold harmless Landlord from and against any and all other liability, loss or expense (including attorney’s fees), in connections with any federal or state statute, law, ordinance, regulation or judgment related to the existence, disposal or release of contaminants or pollutants on said premises by DigitalPath, Inc. These covenants shall survive the termination of this lease.

14. NOTICES: All notices or demands are deemed to have been given or made when delivered in person or delivered by certified or registered mail, return receipt requested, postage prepaid United States mail, or by reliable overnight carrier, and addressed to the prospective parties as follows:

Sunset Hill Communication Lease – DigitalPath, Inc. Page 4 of 7

Landlord: South Feather Water and Power 2310 Oro-Quincy Highway

Oroville, CA 95966 Attention: Power Division Manager

DigitalPath, Inc.: 275 Airpark Boulevard, Suite 500

Chico CA 95973 Attention: Mr. Andrew Cardin, Vice President – Wireless Infrastructure

15. GENERAL PROVISIONS: (a) DigitalPath, Inc. agrees to notify Landlord prior to vault entry for maintenance

due to door alarms that will be generated. In case DigitalPath, Inc. requires access to the vault during non-working hours or in an emergency, DigitalPath, Inc. will make every reasonable attempt to notify the Landlord prior to entering.

(b) DigitalPath, Inc. will be solely responsible for all maintenance and repair of

the proprietary wireless radio equipment in Tenant’s Room. Further, DigitalPath, Inc. will be solely responsible for all maintenance and repair of the aforementioned equipment’s associated devices such as coaxial lines, antennas, panels, batteries, mounts, or other devices.

(c) DigitalPath, Inc. agrees to supply, install and maintain any and all equipment

or devices, other than those mentioned herein, necessary to implement operation of the proprietary wireless radio equipment at Sunset Hill.

16. HOLD HARMLESS/INDEMNIFICATION/INSURANCE: Sunset Hill has been

leased and operated by Landlord for purposes of operating its public system, and rights to the use thereof have been heretofore granted to public agencies and PG&E for their own, public service, non proprietary purposes, and it has not been used for commercial, proprietary purposes such as DigitalPath. Therefore, DigitalPath assumes all risk of loss to its facilities installed within Sunset Hill. It is understood and agreed that Landlord shall not be liable for any damage or injury to any person or persons or property, including property of DigitalPath, occurring or arising upon the premises from any cause whatsoever, except when caused by the willful or gross negligence of Landlord. Notwithstanding the foregoing, in no event shall Landlord be responsible for, and DigitalPath shall hold Landlord harmless from, claims for loss of, or damage to, DigitalPath’s property, including loss of business resulting therefrom, in excess of one year’s rent paid by DigitalPath to Landlord for said premises. DigitalPath, Inc. hereby agrees to defend, and to keep safe and harmless said Landlord from any suit or claim for damage to persons or property, or injury sustained upon the premises arising from DigitalPath, Inc.’s use and occupancy. DigitalPath, Inc. covenants and agrees that it will, at its sole cost and expense, maintain and pay for its own casualty, business interruption, and general liability insurance to protect itself from such claims or liability.

Sunset Hill Communication Lease – DigitalPath, Inc. Page 5 of 7

17. ASSIGNMENT: DigitalPath, Inc. may assign it rights and obligations hereunder to a successor that assumes ownership and operation of its proprietary wireless radio equipment and system, and accepts the terms and conditions hereof, including a successor assuming ownership as a result of a plan of reorganization approved by the Bankruptcy Court. Landlord shall be notified, in writing, within thirty (20) days of such assignment. Notification shall include the proposed successor’s undertaking, reasonably satisfactory to Landlord, to be bound by each of the terms and conditions hereof. Prior to the effectiveness of any such assignment, DigitalPath, Inc. shall obtain the written consent of Landlord to such assignment, which consent shall not be unreasonably withheld. DigitalPath, Inc. shall provide Landlord information reasonably needed by Landlord to evaluate the capability of the successor to operate DigitalPath, Inc.'s facilities in accordance with DigitalPath, Inc.'s operating requirements and standards. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto.

18. DESTRUCTION: In the event the Tenant’s Room and/or Tower is substantially or completely destroyed, with or without fault on the part of Landlord, DigitalPath’s .sole remedy against Landlord shall be one of the following: (1) to exercise the right to locate to another facility owned by Landlord, if available, until Landlord reconstructs the Tenant’s Room and/or Tower; or, to terminate this Lease without obligation for future rent. No payment of the rental fee shall be due to Landlord during any period of time when DigitalPath is relocated, until Sunset Hill is reconstructed.

19. SUBORDINATION TO MASTER LEASE: Notwithstanding any other provision hereof, this Lease shall be subject to, and subordinate to, the terms and conditions of the Master Lease as they exist or as they may be modified by action of the USFS. Any change, modification, limitation, or termination of modification of the Master Lease shall govern and limit this Agreement, and Landlord shall not be liable for, nor responsible for, restrictions or limitations of DigitalPath’s benefits hereunder arising from changes to, or termination of, the Master Lease. DigitalPath’s sole remedy in the event such changes limit or restrict its rights hereunder shall be to terminate its occupancy under this Lease.

20. RE-OPENER ON RENT: Notwithstanding the provisions of Paragraph 3

hereof, rent payable by DigitalPath hereunder is subject to renegotiation under any of the following conditions:

a. The rent charged to Landlord under the Master Lease is changed. b. Upon termination of the initial term hereof. c. Upon DigitalPath’s exercise of the right to renewal or extension.

In the event of such re-opener, the Parties shall negotiate in good faith to agree upon a rent that reflects the fair market value of comparable facilities. If the Parties are unable to reach agreement on the modified rent, this Lease shall be subject to termination by either Party upon thirty (30) days notice, without further obligation or liability.

Sunset Hill Communication Lease – DigitalPath, Inc. Page 6 of 7

IN WITNESS WHEREOF, the parties have executed this amended lease agreement this 23 day of June 2009. SOUTH FEATHER WATER AND POWER AGENCY By:____________________________ _______________________ General Manager Date DIGITALPATH, INC. By:____________________________ _______________________ Andrew Cardin, Vice President – Wireless Infrastructure Date

Sunset Hill Communication Lease – DigitalPath, Inc. Page 7 of 7

F:\Board\Agenda\Item Reports\LAFCo Election.062309.doc

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Michael Glaze, General Manager DATE: June 15, 2009 RE: LAFCo Election Agenda Item for 6/23/09 Board of Directors Meeting Attached is a ballot from LAFCo transmitting for the election of a Non-Enterprise Special District Commissioner. The LAFCo Commission is comprised of two representatives from city councils within the county, two representatives from the County Board of Supervisors, one enterprise special district (e.g., SFWPA, PID, LOAPUD, TID) representative, one non-enterprise special district (e.g., Oroville Cemetery District, FRRPD, CARD, etc.) representative, and one member at large. The election in May resulted in a three-way tie, creating the need for a run-off election. To ensure that a quorum is established, it is important that SFWPA submit its ballot, whether or not it casts its vote for any of the candidates. If a director wishes to propose a vote for one or more of the candidates, the following action would suffice:

“I move that South Feather Water and Power Agency’s vote be cast for ___________ as Non-Enterprise Special District Regular LAFCo Commissioner.”

BUTTE LOCAL AGENCY FORMATION COMMISSION 1453 Downer Street, Suite C

Oroville, CA 95965 (530) 538-7784

2009 RUN-OFF ELECTION BALLOT for

Non-Enterprise Special District Regular Commissioner ONLY

Non-Enterprise Special District Regular Commissioner

The following three (3) nominees for the Non-Enterprise Special District Regular Commissioner position each received an equal number of votes in the initial election process requiring a run-off ballot be circulated. Please vote for one by marking box.

□ Mark Sweany – Chico Area Recreation & Park District

□ Loren Gill – Feather River Recreation & Park District

□ Jerry S. Davis – Reclamation District No. 833

Certification of Ballot

______________________________________ _______________________________________ District Board Chair or Designee District Manager / Secretary of the Board

_______________________________________ Name of District