EXHIBIT 27-B

MINUTES

Team Safety Meeting

March 9, 2007

- The meeting was called to order at 9:15 am in the 5 Harris Court Conference Room -

MEMBERS PRESENT: Michael Boles, Rick Dickhaut, Matt Lyons, Joe Oliver,

Cynthia Schmidlin

MEMBERS ABSENT: None

I. TOPICS OF DISCUSSION

OLD BUSINESS

In December, 2006, Team Safety performed its annual inspection of the District’s Field Office locations of the Carmel Valley Field Office, Carmel Valley Shop, Sleepy Hollow Rearing Facility, and for the first time, the Seaside Aquifer Storage and Retrieval Well. This inspection was the most positive in the past few years. Work areas were orderly and clean. No work hazards were found, other than the failure of some employees to retrieve fire extinguishers immediately after annual inspection and renewal at the Main Office in Monterey. Storage areas had easy access. Stored equipment did not block entrance ways, especially in the Carmel Valley Shop, where it has previously been a problem. The installation of shelves there, for “smart storage”, has helped utilize the limited space very effectively. Other housekeeping problems encountered in the past had been resolved and were not reoccurring. Team Safety has been encouraged to see items noted in their Inspection Reports followed up, deficiencies corrected, and suggested practices continued into the future. No responses from Division Managers will be necessary for this inspection period.

NEW BUSINESS

A. Annual 5 Harris Court Inspection: Team Safety performed inspections of the District’s main office building on March 9, 2007.

The inspection rating overall was satisfactory. Most office areas were neat and orderly, meeting all safety standards and providing a professional environment. However, the following problem areas were noted, according to inspection category:

1) General Work Sites are Neat and Orderly:

a. The First Floor Hall beyond the Lobby – This area was partially blocked by a number of boxes that had been delivered. Michael Boles, who works on the first floor in the Water Demand Division, noted that boxes can sit for days after delivery. This creates a definite trip hazard and hallway blockage was a contributing factor in the only District accident during the current fiscal year. An employee injured her knee, bumping it into the side of a cart that had been stored in the hall and protruded into the walkway. Fortunately, it was not a serious injury, but that might not have been the case. Boxes can likewise be a hazard. Team Safety recommends any boxes that are delivered should be retrieved and the contents put away as soon as possible, and within a maximum

of 2 business days. If the recipient is not immediately available, deliveries can be placed against the door to the lobby where the hall is widest near the entrance to the Conference Room, They should be placed one box deep only, to prevent encroachment on the walk way. If the recipient is away from the office for a period of time exceeding 2 business days, the Administrative Services Mgr. should be notified and the boxes moved to the Garage for temporary storage.

b. Administrative Services/Information Technology - Boxes containing computer equipment have begun to pile up in a haphazard manner in the ASD/IT area near the Computer Room. They are not directly blocking the walk way, but they do not present the image of an ordered work area. This is not a long-term storage area and should not be used in this manner.

2) Storage and Equipment Rooms and Neat and Orderly:

a. The Engineering File Room still has boxes of folders that are stacked on top of the file drawers and on the floor. These are both trip and earthquake hazards that have been noted in prior inspection reports. They need to be evaluated for removal to the archives. Some boxes of files could be retained if securely placed in shelves bolted to the wall above the bookcases. Team Safety recommends that Planning and Engineering staff take 90 days to go through the files and determine what should be stored at 5 Harris Court and what can be moved to the archives. They have promised to complete this process previously, but have had other priorities interrupt them. Team Safety believes that this issue must be prioritized for them by the General Manager.

b. The Garage is still used for storage of unused materials and equipment that needs disposal. A table is set up in front of the storage racks, partially blocking entrance to the garage from the outside hall. Approximately 25 boxes of empty 4-inch binders are sitting in storage boxes on top of and behind this table. These binders have been in storage for 1and one-half years and will not be used by District staff. Cynthia will look into auctioning them on E-Bay. Also, there are a large number of unusable computer monitors that also need disposal. They should be taken to the Last Chance Mercantile. Team Safety will schedule a garage clean up after the next Staff Meeting on March 22nd. Other housekeeping issues noted were an unused generator and waders lying on the floor. The generator can be moved to the Carmel Valley Shop for storage and the waders checked for usability and either stored neatly or discarded. A kayak being stored on top of the storage racks is a hazard. Michael Boles will look into a pulley system from the ceiling that could be used to secure the kayak. Mops, brooms, and other tools were propped up against the wall, blocking access to the electrical panel. These were moved last year but returned.

The principal safety issues at 5 Harris Court concern housekeeping issues in the garage and storage areas. Inspection Reports will be distributed to the appropriate Division Managers for review and remedial action. Memos outlining that action will be attached to these minutes for Board review. (Attachment 1)

II. NEXT TEAM SAFETY MEETING

The next Team Safety Meeting will be held during the second quarter of the 2007 calendar year.

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