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HomeMy WebLinkAbout07-05-06 Board Minutes•• MINUTES OF THE BOARD OF DIRECTORS MEETING OTAY WATER DISTRICT July 5,2006 1 The meeting was called to order by Vice President Lopez at 3 40 P m 2 ROLL CALL Directors Present Directors Absent Staff Present Breittelder,Croucher,Lopez and Robak Bomlla (handling pressing business matters and IS unable to attend) General Manager Mark Watton,Asst GM Administration and Finance German Alvarez,Asst GM Englneenng and Water Operations Manny Magana,General Counsel Yun Calderon,Chief of Information Technology Geoff Stevens, Chief Financial Officer Joe Beachem,Chief of Engineering Meho:Arbabran,Chief of Operations Pedro Porras,Chief of Development Services Rod Posada,ChIef of Administration Rom Sarno,District Secretary Susan Cruz and others per attached hst 3 PLEDGE OF ALLEGIANCE 4 APPROVAL OF AGENDA A motion was made by Director Breittelder,seconded by Director Croucher and earned With the Iollowmq vote Ayes Noes Abstain Absent Directors Breitfelder,Croucher,Lopez and Robak None None Director BOnilla to approve the agenda 5 APPROVAL OF MINUTES OF THE SPECIAL BOARD MEETING OF MAY 30, 2006 A motion was made by Director Brerttelder,seconded by Vice President Lopez and earned With the followinq vote Ayes Noes Abstain Absent Directors Brertfelder,Croucher,Lopez and Robak None None Director BOnilla 1 •• to approve the rrunutes of the special board meetmg of May 30,2006 6 PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one Wished to be heard CONSENT CALENDAR 7 ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM Director Breltfelder requested that Items 6h,ADOPT RESOLUTION NO 4082 AMENDING POLICY 26,DISTRICT ADMINISTRATION OF REIMBURSEMENT AGREEMENTS,6J,ADOPT THE OTAY MESA VALUE ENGINEERING STUDY, and 6k,ACCEPT MR JOSE RODRIGUEZ'S REQUEST FOR A WAIVER OF PENALTY FEES IN THE AMOUNT OF $4,617 FOR AN UNAUTHORIZED SEWER CONNECTION,be pulled for discussion A motion was made by Director Croucher,seconded by Director Breitfelder and carned With the followmq vote Ayes Noes Abstain Absent Directors Breitfelder,Croucher,Lopez and Robak None None Director Bonilla to approve the followinq consent calendar Items a)ADOPT RESOLUTION INCORPORATING THE NATIONAL INCIDENT MANAGEMENT SYSTEM AND INCIDENT COMMAND SYSTEM INTO FUTURE DISTRICT EMERGENCY RESPONSE EFFORTS b)REJECT ROSETE /DUCUT CLAIM c)ADOPT RESOLUTION NO 4083 TO ESTABLISH THE TAX RATE FOR IMPROVEMENT DISTRICT NO 27 AT $0007 FOR FISCAL YEAR 2006- 2007 d)APPROVE REVISIONS TO THE CERTIFICATE INCENTIVE PROGRAM, RATIFY ONE MEMORANDUM OF UNDERSTANDING SIDE LETTER FOR IN-RANGE ADJUSTMENTS,ADOPT RESOLUTION NO 4084 TO REVISE THE DRUG FREE WORKPLACE BOARD POLICY NO 22, AND, ADOPT RESOLUTION NO 4086 TO REVISE THE EMPLOYEE RECOGNITION BOARD POLICY NO 2 2 •• e)APPROVE UTILITY AGREEMENT NO 31755 WITH CALTRANS FOR SR 905 UTILITY RELOCATIONS f)AWARD A CONSTRUCTION CONTRACT TO ZONDIROS CORPORATION IN THE AMOUNT OF $930,316 FOR THE CONSTRUCTION OF THE SR 905 UTILITY RELOCATIONS,ALTA ROAD VAULTS AND METER BYPASS PROJECT g)AWARD A PROFESSIONAL ENGINEERING SERVICES CONTRACT TO PBS&J IN THE AMOUNT OF $119,580 FOR THE REVISION OF THE WASTE DISCHARGE PERMIT FOR THE DISTRICTS RECYCLED WATER DISTRIBUTION SYSTEM h}AWARD A CONSTRUCTION CONTRACT TO BLAIR RASMUSSEN CONSTRUCTION IN THE AMOUNT OF $60,747 FOR THE REMODEL OF THE METER SHOP INFORMATION I ACTION ITEMS 8 ENGINEERING AND WATER OPERATIONS a)ADOPT RESOLUTION NO 4082 AMENDING POLICY 26,DISTRICT ADMINISTRATION OF REIMBURSEMENT AGREEMENTS Director Brertfelder indicated that he wished to confirm his understanding of the proposed revised policy HIs understanding IS that the board approves reimbursement agreements at their Inception and It IS again presented to the board prior to processing the reimbursement He asked If this understanding was accurate Chief of Development Services Rod Posada Indicated that that was correct He stated that additionally,If there are agreements that are older than five years,they would also be presented for board consideration It was discussed that several staff members review the reimbursement requests In detail and If staff disaqrees with the amount requested,they contact the developer and review areas with the developer where there IS concerns He stated that many times, the developer agrees to a lower fIgure than ongmally requested DIrector Brerttelder Indicated that It seems that the Drstnct's staff has the process pretty much handled He indicated that he felt It appropriate that the board approve the mrtiai agreement and only If there were drscrepancies or Issue WIth the requested reimbursement,otherwise he felt that It need not be brought back for board approval as It may be perceived that the board IS Interferrng Withthe contracts (pohtrctzmq the action) General Manager Watton mdicated that some reimbursements are hundreds of thousands or rrulhons of dollars and he would like the board to be aware of the 3 •• amounts of the reimbursements that are being provided and that agreements are bemq closed He stated that he had not looked at It from the standpoint of the board actually mterfermq with the contracts which IS another matter He stated that It IS brought back to expose the board to the reimbursements Director Croucher mdrcated that the Engineering and Water Ops Committee reviewed this Item and staff had brought to their attention the weaknesses In the current policy The committee had asked staff to recommend Improvements to the policy They also asked staff to get Input from the developers as well He stated that he felt that It was part of the board's Job to Improve the future and Identify weaknesses General Counsel Calderon Indicated that there IS no real Involvement by the board In reviewing the amount of the reimbursement He stated that staff reviews the reimbursement very thoroughly and the reimbursement request IS simply being presented for final approval as It exceeds the General Managers authonty He indicated that many times the reimbursements are not requested In the fiscal year In which they are expected and It IS appropnate to present It to the board so they are aware of the requests General Manager Watton indicated that the reimbursement IS fact based and would be difficult for board members to Interfere or Influence DIrector Brenfelder mquired what would stop a board member from utrhzmq the Implied threat of his/her power and also what happens If a board member votes no on the reimbursement request General Manager Watton Indicated that the developer would probably sue the district as, again, the reimbursement IS fact based General Counsel Calderon indicated that there IS a contract In place and the Distnct would be bound by the contract The only thing that the DIstrict could dispute IS the actual charges which would need to be backed With factual data Director Brertfelder indicated that It would be naive for the board not to recoqruze that there IS at least an unphed threat here He indicated that he has stated hrs posiuon and IS ready to vote A motion was made by DIrector Croucher,seconded by DIrector Robak and earned WIth the followmq vote Ayes Noes Abstam Absent Directors Croucher, Lopez and Robak Director Breittelder None Director Borutla to approve staffs'recommendation b)ADOPT THE OTAY MESA VALUE ENGINEERING STUDY 4 •• Sr CIvil Engineer Randy Klaahsen Indicated that the recycled system In the Otay Mesa area was originally Installed to serve a power plant He stated that there was currently 20 and 30-lnch transrrussion pipelines Installed In the area He stated that typically the District does not use less than s-mch pipelines on standard distribution networks and thus, If the zoning In the Otay Mesa area was changed to residential,the current drstnbution and transrrussion system could handle the needs without any problems He stated that If the area should change from industrial to residentral there would be a slight Increase In demand for recycled water In the area It was noted that the Otay Mesa study looked at both scenanos,If the area remained mdustnal or was rezoned for residential HI indicated that the value engineering's study goal was to •Promote a team approach • Look at alternatives to reduce capital costs for servicing the Otay Mesa 860 zone with recycled water •Address developer concerns constructing the local recycled water system He indicated that the anginal plan was to serve the Otay Mesa area with recycled water through a reservoir and pump station and to build a transmission network from the west to the east He Indicated that a panel of 15 members from various aqencies and the City of San Diego came up with 32 different Ideas that were whittled down to 10 to 12 Ideas Hams and ASSOCiates reviewed the Ideas and calculated cost and benefit for each and Identified the followmq key alternatives •Pipeline from the North along proposed Route 125 •Pipeline from North from La Media Road •PIpeline from North along Wueste Road •Downsizmq Exaction Project Distnbunon System •Eliminate recycled water use on demands under 1 acre foot a year He stated that It was determined that the Wueste Road alternative provided the same level of service at a lower cost and eliminated the need for the 450-2 reservoir and the 860-1 pump station along wrth the long-term maintenance associated with such Infrastructure He stated that ultimately the District would be required to meet approximately 18 MGD durrng the height of summer The drstnctplans to meet the supply With 100%recycled water Director Robak inquired what year staff expected demand to reach 18 MGD and If the district would have the capacity to serve this demand Sr CIVil Engineer Klaahsen mdrcated In the year 2030 He Indicated that the District currently has 7 1 MGD supply and the District Will need to acquire additional supplies He stated that this IS being addressed by the Integrated Water Resources Plan General Manager Watton indicated that current demand was peaking at over 8 MGD at the moment He indicated that the City of San Diego allows the Distnct 5 •~,....•.!t.I., -iii _• to take at peak If the water IS available If It IS not, the system IS supplemented with potable water He stated the cost difference for the pipeline from the west alternative cost approximately $20 5 million and the Wueste Road alternate cost approximately $14 1 million With a difference of $6 4 million In capital cost savings He noted that the operation and maintenance cost Will also go down (from $636,000/year to $238,OOO/yearas the anginal planned reservoir and pump station have been eliminated He Indicated they reviewed the distnbunon network and were able to reduce the network from 240,000 linear feet to 150,000 linear feet while stili getting good overall coverage In the system He stated that general counsel did not recommend eliminating recycled water use on users that would have a demand of less than 1 acre foot a year because of the sense of unfairness to adjacent properties and the requirement for a nexus study under California Government Code Section 66000 Sr CIvil Engineer Klaahsen Indicated that staff was asking the board to •Adopt the Otay Mesa Value Engineering Study •Adopt the downsized distribution system network that Will relieve some of the burden on developers and save approximately $8 8 million dollars In exaction pipelines •Continue to require all new developments to Install recycled water drstnbution systems and Irrigate landscaping With recycled water Director Robak mquired With regard to the nexus of what has been and WIll be Installed and the need to acquire additional resources from the City, are the developer paying their fair share Sr Civil Engineer Klaahsen Indicated that the District only has two capital Improvement projects for the system,the main transrrussion pipeline on Alta Road and a transmiss.cn pIpeline on AIrway Road He Indicated that the developers are Installing the rest of the system General Manager Watton indicated that developers also pay a meter fee for the recycled system which IS kept by the DIstrict He stated that finance calculates this fee on the whole recycled system,not Just the Otay Mesa area He indicated that the fees are not unique to the Otay Mesa area Director Robak further mqurred If the ratepayers who do not utilize recycled water assist In paying for the cost of recycled water for those ratepayers who do or are the developers paying for the full system General Manager Watton Indicated that the way fees are set-up,all ratepayers are paymg for the recycled system He indicated that the potable customers also receiving a benefit from a supply standpomt Chief Financial Officer Beachem indicated that the potable and reclaimed capacity fee IS a cornbmed calculation He Indicated that it is the same fee for both services He mdicateo that In a sense,the potable customer IS paying for a portion of the reclaimed CIP system 6 •.~t• Director Robak Indicated that he Just wished to be sure that ratepayers are paymq equitably for potable,sewer and recycled services General Manager Watton Indicated that the rate study several years ago had identfted that the sewer customers were not paymq their fair share This IS when the Distnct determmed what sewer rates should truly be to answer the nexus question Sr CIvil Engineer Klaahsen also added that there was a npple effect dependmg on where the supply would come from If the supply came from the South Bay Reclamation Plant, then staff would need to assure that the distnbution systems did not get over pressunzed and that the pump stations can be upgraded without requmnq a full retrofit It was determined that the Distnct Will need to add an Impeller to some pumps In the 680 pump station In 2015 and the pumps would need to be changed out at the 944 pump station In 2025 DIrector Robak mquired that In the future, If re-punfied water was approved for consumption, would the purple pipes still be required General Manager Watton Indicated that new systems would no longer require dual piping and the potable system would be Sized to frt the new Situation However,m areas where dual pipmq exists.the purple pipes would continue to be utilized for capacity purposes General Manager Watton added that studies mdicate that the cost IS less to continue systems as they are now,rather than moving to re-punficatron Director Croucher indicated that the Engmeenng and Water Operations Committee also discussed this Item at length and the POSSIbility of providrnq reclaimed water south of the border,should there be a need,through the current project He stated that he was also happy that all current facrhtres would contmue to be utilized which IS a change from dISCUSSions from three to four years ago where some facilmes would no longer be utihzed. He stated that It was encouraqrnq to be able to work out,through bramstormmq sessions WIth other agencies,a solution to maxirruze the use of facilmes already In the ground A motion was made by Director Croucher,seconded by Director Robak and earned WIth the follOWing vote Ayes Noes Abstain Absent DIrectors Breitfelder,Croucher,Lopez and Robak None None Director BonIlla to approve staffs'recommendation c)ACCEPT MR JOSE RODRIGUEZ'S REQUEST FOR A WAIVER OF PENALTY FEES IN THE AMOUNT OF $4,617 FOR AN UNAUTHORIZED SEWER CONNECTION Director Bnetfelder Indicated that there was discussron In the Englneenng and Water Operations Cornrruttee the desire to waive the $50 apphcatron fee He stated that Items approved on the consent calendar IS an approval of staffs' 7 •• recornrnendatron He stated by approving staffs'recornmendation on this Item, the board would not be approvmq the committee's desire He Wished to discuss this Item so the committee's request can be acted upon Director Croucher mdicated that the Engmeenng and Operations Committee noted that the homeowner ord not have anythmg to do With the Illegal connection and that he, In fact, had a legal connection He stated that the homeowner purchased the property approximately a month pnor to the District's Inspector idennfymq that there was an Illegal connection from the property He stated that the $50 application fee IS charged to dissuade fnvolous claims and It also covers staffs' time to process the warver He stated In thts particular case, because the homeowner's request IS true and valid and had the district acted upon the Illegal connection,It would have been prior to his ownership of the property,the committee Wished to also refund the application fee Vice President Lopez mdrcated that the recommendation to waive the application fee of $50 IS noted In the committee actron attachment General Counsel Calderon indicated that trus Item IS presented as all requests for penalty waivers must be presented to the Board of DIrectors for approval Director Robak mquired where the Illegal line was hooked to It was mdicated that the Illegal lme was connected from the pool area to the storm dram Director Breitfelcer mdicated that he Wished to note that the fee IS to cover staffs' time and a waiver of such a fee could set precedent for other Issues which may not be so convenient to the district Vice President Lopez indicated that he felt that It was appropnate m thrs particular case. A motion was made by Director Breltfelder,seconded by Director Croucher and carned With the following vote Ayes Noes Abstain Absent Directors Croucher, Lopez and Robak Director Breittelder None Director Bomlla to approve staffs'recommendation With an amendment to also waive the $50 application fee 9 ADMINISTRATION AND FINANCE a)PUBLIC HEARING TO CONTINUE WATER AND SEWER AVAILABILITY CHARGES FOR FISCAL YEAR 2006-2007 1)ADOPT RESOLUTION NO 4078 TO CONTINUE WATER AND SEWER AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL YEAR 2006-2007 TO BE COLLECTED THROUGH PROPERTY TAXES, TO ADOPT VERBIAGE CHANGES TO B •• CLARIFY PENALTY CHARGES WHEN A SIGNER TERMINATES AN AVAILABILITY DEFERRAL AGREEMENT PRIOR TO ITS EXPIRATION DATE,AND,CLARIFY THE PROCESS FOR A PROPERTY OWNER TO GET A REDUCED RATE FOR LAND THAT MEETS OR EXCEEDS A 30%SLOPE (HENDERSON) Chief Financial Officer Joe Beachem indicated that each year the board must open a public heanng to receive the public's comments on the Distnct contmumq water and sewer availability fees He indicated that the Distnct contacted all new customers to notify them that there IS an availability fee that will appears on their property taxes He Indicated that the fee funds capital expenditures and that the Drstnct has been collecting the fee for over 30 years which authorized through the State Code General Counsel Calderon Indicated that state law requires that the District adopt a resolution annually to reassess the fee Vice President Lopez opened the pubuc heanng at 4 34 P m No one wished to be heard The public hearing was closed at 4 34 P m Director Robak Inquired If there were areas In Jamul where owners are paymg fees, but were not Within the CWA or MWD boundanes General Manager Watton Indicated that there are a few thousand acres that are Within Otay's boundanes where the owners are paymg the Distnct's fees,but they are not paying CWA or MWD fees. He stated that If the owners of these lands WIsh a permanent water supply,they would need to annex into CWA and MWD boundarres He Indicated that property owners who are paymg availability fees have the ability to submit an application and get water from the Oismct,but there was no guarantee,as some may also need to buud a pipeline to receive the water Customers may not necessarily understand trus However,there IS a value to paying the fee If at some pomt the owner Wishes to develop their parcel of land and receive water from the distnct A motion was made by Director Breitfelder,seconded by Director Robak and carried With the following vote Ayes Noes Abstam Absent Directors Breitfelder,Croucher,Lopez and Robak None None Director Bomlla to approve continuing water and sewer availability charges for FY 2006-2007 10 ENGINEERING AND WATER OPERATIONS a)APPROVE THE DISTRICTS PARTICIPATION IN A JOINT WATER RECYCLING FACILITY FEASIBILITY STUDY AT A COST NOT TO EXCEED $80,000 9 •• Sr CIvIl Engineer Klaahsen mdlcated that there would be three participants m the feasibility study, Otay,Sweetwater Authonty and the City of Chula Vista He stated that the City of Chula Vista will require an additional 5 MGD of wastewater capacity from Metro or the new water recycling facrlrty once the city IS bunt out Sweetwater Authonty recently completed a recycled water master plan and they have an Interest In the water recycling busmess Unfortunately,one of their biggest potential users will no longer require recycled water, LLS Power (Duke Power Plant) and thus, they have approached Otay as It has a need for additional recycled water supplies He mdtcated that there are two (2) potential sites that will studied • 4 th Street and Main In the City of Chula Vista (Otay River Plant) •Downstream of Sweetwater Authonty's Dam In the Sweetwater River Shed He stated that the recycling facility would stnp wastewater from the Spnng Valley sewer outfall and solids would be returned to the Metro System,strrular to the Chapman Treatment Plant He stated the treated effluent would be pumped to pond 1 and 4 In the Use Area where It would be distnbuted to the Distnct's recycled system. Sr CIVil Engmeer Klaahsen Indicated that the treatment method,Membrane Bioreactor (MBR), would be utilized at the proposed treatment plant He stated that this treatment method has been studied by CWA and costs about 85% of the capital cost of a conventional treatment plant He Indicated that It also takes approximately 50% less area than a conventronal treatment plant and the effluent quality IS better He noted that the solids would be returned to the Metro System so the plant would not have to deal with solids handling He noted that the capital cost for the MBR IS approximately $50 rrulhon and operatron and mamtenance cost for 30 years IS $13 million He stated that the cost to send the solids to the Metro System has not yet been estimated,but It would be charged at a higher rate as the plant would send mqher TSS (Total Suspended Solids)and hiqher BOD of water He also stated that the cost to pump the effluent to the Distnct ponds IS not included m the estimates as well He stated that the present worth cost for the water IS $700 per Acre Foot and thrs figure drd not mclude the CWA or MWD mcentives The facmty would require about a four acre site He indicated that there were some challenges to bUlldmg the MBR facthty He indicated that they would need to work With the City of San DIego on the solids disposal and that there may be an opportumty to work With the Spnng Valley Sarutation oistnct There was also IS an Impact to losmq the power plant as a customer as they would have utilized 5 MGD of recycled water dally for coohng purposes He mdicated that dunng low demand days In the winter, the unused water would need to be stored somehow to avoid paymg the City of San Diego capacity fees for sending the unused water to their system He Indicated that 10 •• they are explonng ways In which the water can be stored,possibly Injected Into groundwater,live-stream discharge,etc Sr CIvil Engineer Klaahsen indicated that staff IS recommending that the Distnct participate In a JOint study with the City of Chula Vista and Sweetwater Authority as a 1/3 partner In the Recycling Facility Feasibility Study In an amount not to exceed $80,000 He noted that Sweetwater Authority has received a $25,000 FAP Loan from the CWA to more forward with the study DIrector Bnetfelder mquired when the study would be completed Sr CIvil Engineer Klaahsen mdicated the study would not start for a couple month and when It IS started It would take approximately SIX to nine months He Indicated that the study would probably take approximately one year to complete Vice President Lopez Inquired why CWA would be adrrurustennq the project Sr CIvil Engineer Klaahsen mdicated that the Sweetwater Authonty would administer the study CWA IS involved as Sweetwater Authonty received a loan from CWA to do the study If It IS determined through the study that the recycling facihty IS feasible,then the partners would need to pay back the $25,000 loan to CWA General Manager Watton further Indicated that Sweetwater Authonty ongmally approach CWA as the project was more onented toward the bay front The project has expanded and now two sites Will be studied Director Robak mquired why It would make more sense at the outfall rather than the Chapman Plant Sr CIvil Engmeer Klaahsen indicated that at the outfall there would be much more wastewater available He mdicated that the Chapman basrn does not have potential for growth as there IS no new supply potential m ItS location He mdrcated that there would be approximately 11 MGD In the outfall pipe that Will be studied Director Robak mquired how the cost of $700 / AF figure was determined Sr Civil Engineer Klaahsen indicated that CWA had studied 11 different sites (CWA MBR Study)In 2005 and this was the figure from their study General Manager Watton noted that the $700 I AF figure IS for the plant Itself, but that the figure did not Include the cost for the distnbutron facihtres to the Distnct's use area or the mcreased solids disposal cost Director Robak mquired what the cost was for AF at the Chapman Plant General Manager Watton indicated approximately $1,100 Sr CIvil Engmeer Klaahsen indicated that the economy of scales really Impacts the cost (5 MGD vs 1 2 MGD) General Manager Watton mdicated that, per discussrons at CWA,the MBR process IS not much cheaper for the product water He stated that he was not certain If this was Improving,but tus understandmg was mainly the land area, operations and maintenance cost was much less Sr CIvil Engineer Klaahsen Indicated that the operations and maintenance cost was much less due to the fact that there was much more automation With an MBR facrhty 11 '"•• Director Robak inqutred If the study would possibly take a look at treating the effluent water from the Chapman Treatment Plant and treatmg It at the proposed MBR plant Sr CIvIl Engineer Klaahsen indicated that, yes,that would also be part of the study A motion was made by Director Croucher,seconded by Director Robak and earned with the following vote Ayes Noes Abstain Absent Directors Brertfelder,Croucher,Lopez and Robak None None Director Borulla to approve committee recommendation Withthe amendment that the Dismct may Wishto be partner under both location alternatives If It IS financially beneficial to the District 11 BOARD a)DISCUSSION OF 2006 BOARD MEETING CALENDAR There were no changes to the calendar b)ADOPT RESOLUTION NO 4085 CONCURRING IN THE NOMINATION OF MS JO MACKENZIE TO CALIFORNIA SPECIAL DISTRICT ASSOCIATION'S BOARD OF DIRECTORS A motion was made by Director Croucher,seconded by Director Breitfelder and earned With the followrnq vote Ayes Noes Abstain Absent Directors Brerttelder,Croucher,Lopez and Robak None None Director Boruila to adopt Resolution No 4085 concurnng In the nomination of Ms Jo MacKenZie to the Cauforrua Special District ASSOCiation's Board of Directors. c)AUTHORIZE OTAY DELEGATES TO THE SAN DIEGO COUNTY WATER AUTHORITY TO TAKE AN APPROPRIATE POSITION ON PROPOSITION 84,CAVES BOND INITIATIVE General Manager Watton Indicated that that he had attached to hrs report some arguments against Proposition 84 prepared by Ohvennam and arguments In favor prepared by the Callformans for Clean Water, Parks and Coastal Protect/on He stated that the Issue was to be aqendized by CWA at the end of July, but he IS heanng that It may be delayed He Indicated that Director 12 •• Croucher and he (Otay WD's CWA delegates)are,at this time,leanmg toward opposing the proposition He stated,however,there IS more mformatron bemg developed and he IS requestmg that the board permit the district's delegates to decide on a position on Proposition 84 at CWA's meeting scheduled later In the month Director Bnetfelder mquued what type of mforrnanon would change their stance on the proposition General Manager Watton indicated that there could be some developments on how these bonds WIll be administered relative to the reqionai master plans If Mr Caves were Involved,that could be a benefit and the district may wish to lean toward a neutral stance He stated that there could also be some Issues with regard to the Governor's bond that could develop,though he IS not anticipating any,but he wished to request that they have enough flexibihty to consider any changes pnor to makmg their final decisron on thrs matter at CWA's board meetmq He noted that he IS fairly confident that the decision would be to oppose for the reasons outhned In his staff report General Manager Watton mdicated that he was not opposed to the bond rtselt,but to the fact that the public may believe It IS a water bond He Indicated,as a water agency,the drstnct should make It clear to the public that they are votrng on a Park and Recreation bond rather than a water bond.He Indicated that there was billions of dollars rn bond uunanves thiS year,and he felt that the pubhc may be mislead Into thinking this $5 3 billion bonds was a "water"bond and not be open to approving another water bond when the Governor's bond IS presented for approval Director Croucher indicated that there was an ACWA Region 10 meeting at Vallecitos WD to dISCUSS Proposmon 84 on July 6,2006 He felt that the Drstnct should not determine the drstnct's stance on trns Issue prior to other major Institutions to whom we align the District With (Ie,ACWA)He stated that they request that they have the opportunity to decrde on a POSitionat CWA's board meeting later trus month should the vote on thrs Issue not be postpone Director Robak mqurred If ACWA IS In favor or against Proposition 84 as It was not clear In the Information provided General Manager Watton Indicated that they had favored the proposmon until they met With the Region 10 representatives and other agencies He mdrcated that $1 tnihon was earmarked for the Integrated Regional Water Management Plans and $91 million was earmarked for San DIego He indicated that Mr Caves Indicates that there was a billion planned for water projects,but the actual monies were gOing toward watershed restoratrons and environmental Issues and water would take a smaller role A motion was made by DIrector Robak,seconded by DIrector Croucher and earned With the followmg vote Ayes Noes Abstain Directors Brertfelder,Croucher,Lopez and Robak None None 13 Absent • Director Borulla • to authorize the District's delegates to CWA to take an appropriate position on Proposition 84,Caves bond uutiatrve d)REPORT FROM AD HOC COMMITTEE REGARDING GENERAL MANAGER SALARY REVIEW Director Croucher Indicated that the committee had reviewed the compensation of the General Managers for surrounding agencies (Helix WD and Sweetwater Authority,Padre Dam was not rncluded as their current General Manager has retired)They also looked at the vehicle allowances provided to the General Managers Currently,General Manager Watton receives an $800/month vehicle allowance which the cornrmttee wished to move over Into salary Director Croucher Indicated that the cornrmttee recommends that the General Manager's salary be increased to $188,141 86 to brrng his compensation In parity wIth the District's surrounding agencIes The Increase would Include the vehicle allowance and 3% cost of living (COLA)Increase provided to all district employees Director Breitfelder inqUIred what the General Manager's compensation was at Sweetwater Authonty and Helix Drrector Croucher Indicated the fotlowinq Sweetwater Helix $180,177 plus a bonus of $5,165 $173,250 plus a $10,000 car allowance He noted that the figure for Sweetwater was last years salary and that they have not yet negotiated salary Increases for trus fiscal year Director Croucher mdrcated that If the COLA Increase of 3% was not Included,General Manager Watton's salary would be $182,662 which IS In-line With neighbonng agencies He stated that they did check the current COLA rate which was 4 5%, but It was felt that they should stay With the 3%Increase neqotiated by employees General Manager Watton also agreed Director Lopez mcicated that the comrmttee looked at what has been accomplished since General Manager Watton was appointed along Withrus expenence and felt that they should bring hIS salary In panty WIth surrounding agencies Director Brerttelder mdicated that he Wished a good methodology that was reasonably consistent WIth what IS beIng done throughout the organization as a whole and that he was sat.sfieo Director Robak mdicated that he was In agreement WIth the comments that have been made concerning the General Manager's effectiveness However,he had expected a report and not necessarily an action Item He Indicated that he would have lIked to see a spreadsheet and a little more detail He stated that he did not 14 •• doubt the figures the committee reviewed,but he was only expecting an update and did not expect to vote on this Issue He did not disagree,but was not prepared to vote at this time Director Brerttelder indicated that he felt that tlus was a reasonable request Director Croucher Indicated that by putting the vote off, he did not want any confusion as to the board's support for the General Manager He stated that the committee's recornmenoanon concerning the General Manager's salary was based on fact and he felt that It was Important that the board not table this Item to the next meetmg Director Robak Indicated that he was not In disagreement,however,he had only expected a report and had not anticipated on votmg on trus Item He had expected that the Item would be discussed further In closed session It was noted that wages could not be discussed In closed session and the reason the process seemed a httle different from the year before IS the General Manager declined an Increase last year Thus,there was no discussion on the Increase DIrector Brerttelder Indicated that they felt the comrruttee did a very good job In reviewmq and making recommendation on this Issue He stated that,however, as part of standard operating procedure,he felt a board member had the nght to request documentation to review the mforrnatron In advance prior to an Important decision He stated on thrs baSIS alone he IS making a motion to table the Issue until the next board meeting Vice President Lopez Indicated that he would like to see a 5-0 vote on thrs matter and would like the President of the board to have an opportunity to vote He stated In thrs respect,he would agree to table fhrs Item until the next board meeting A motion was made by DIrector Brenfelder,seconded by Director Robak and earned with the followmg vote Ayes Noes Abstain Absent Directors Brertfeldar,Lopez and Robak Direct Croucher None Director Bonilla to table thrs Item untn the next board meetmg REPORTS 12 GENERAL MANAGER'S REPORT General Manager Watton Indicated that Chief of Operations,Pedro Porras, accepted the Distnct's award In a ceremony held In Los Angeles from the State 15 •• of Cauforrua for excellence In energy savmqs He stated that the District was one of two water distrrct's (EI Dorado MWD)who received the award along with numerous Industnal organizations He Indicated that the award was pnmanly for the work operations has done to utilize electncal power off-peak which has saved millions of kilowatt hours The program was part of the State of Cahforrna's plan to encourage the use of energy dunng off-peak hours rather than dunng the day when energy demand IS high He noted that the 30"recycled water pipehne,reservoir and pump station project was on schedule He also mdrcated that the Firewise landscape groundbreakmg ceremony held on June 6thwas a very rnce event and It had brought new people to the garden He stated that the San Miguel Fire Consolidated District had obtained Prop 50 grant funding for the new firewise landscape and he felt the new display would be useful to the cornrnuruty He Indicated that at the May 30,2006 Budget Workshop,the board had a number of quesuons He stated that a document has been attached to rus report responding to the board's questrons He noted that If the board had questions after reading the attachment,to please contact him and staff would be happy to provide any addrtional mforrnanon the board may require He noted that the Interactive VOice Response system would be commg on line soon It was verified that a caller could always default to a live operator whenever they wish to General Manager Watton Indicated that staff WIll be prepanng a Request for Proposal (RFP)for a financial advisor to assist the district with Its pending debt Issuance He stated that the distnct would be working with the ratmg agencies to provide them a very good understandmg of what the District does,Its strengths and the community that It serves,with the Idea that It would help Improve our credit ratmg and save the district money on the bond Issuance He also shared that the Distnct had a pre-proposal meetmg on June 8,2006 for the 36"pipelme project which received an excellent response He lastly noted an update on the Jamul Indian Village (JIV) He stated that the JIV has submitted their Sub-Area Master Plan for the casino development and have distnbuted a notice to the residents of Jamul of the Environmental Impact Report (EIR)for the project He stated a copy of the EIR IS attached to hIS report Director Robak mquired If there was a dIfference between a tnbal EIR versus a regular EIR that the Drstnct would prepare General Manager Watton mdicated that It IS the same format,but under the autonomy of the Indian government,they can set up their own EPA and Issue their own environmental Impact statements He noted that they are quided by the EPA, but they can set up their own Jamul IndIan VIllage EPA which IS what they Will be dOIng He stated that this was very common among the Indian nations 16 •• He noted that Brandon DIPietro was awarded an On-the-Spot Award of $100 for freeing a nine year old boy from under a truck followmg a traffic accident on Proctor Valley Road In Chula Vista He Indicated that Mr DIPietro had lifted a truck off the chIld with a gate key from his district vehicle He stated that the child was severely Injured but survived the accident The DIstrict wished to recognize Mr DIPietro's wulmqness to go beyond the call of duty and provide assistance to the public General Manger Watton indicated that the construction on the Interconnect with Helix WD has commenced on Sweetwater Springs Blvd near Lama Elementary School He Indicated that the Monte Vista High and Lama Elementary have been very appreciative that the Orstnct delayed construction until the close of the school year He stated that the contractor was domq a good Job and was a little ahead of schedule DIrector Robak mqinred If the Distnct was continuing to move forward With the annexation of the balance of the Monte Vista High School site from Helix WD General Manager Watton mdrcated that It was Chief of Development Services Rod Posada mdrcated that Monte Vista has submitted their official request for annexation to the Distnct LAFCO must approve the annexation and staff anticipates forwardmg the annexation for board approval In either August or September 2006 13 SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Croucher mdicated that CWA postponed the EIR report for the Carlsbad desalination plant He noted that the budget Increase of $1 28 million has been transferred mto the budget for the water conservanon programs He Indicated that the funds were transferred from reserves He stated that the MISSion Hills pipeline break repair cost was $3 5 million He Indicated that trus figure does not Include the water lost from the break He stated that the demand on the Skmner Water Treatment Plant has gone over 100%production capacity a couple of times In the last month He stated that this shows the Importance for the Distnct to pursue additional resources through agreements With the City of San DIego,Helix WD,Padre MWD and Sweetwater Authonty as It wrll only get worse He stated that Mr Ben Haddad will be retmnq from the CWA board and that a dec.sion was made In the All Amencan Canal Lrnrnq project litigation In favor of CWA With no InJunctrons A report should be forwarded by CWA some time soon DIrector Robak mqinred when construction would commence on the Iinrng project General Manager Watton Indicated that the 110 IS set to award the contract this month and expect that construction would oeqm In October 14 DIRECTORS'REPORTS/REQUESTS 17 •• Director Robak thanked staff, in particular Cornmurucanons Officer Armando Buelna,who were Involved In the so"Anniversary Open House held on June 17, 2006 He stated that It had gone very well and the people who attended from the commumty seemed to be very pleased with what the Distnct had shared with them He also shared that he along with representatives from the WCG met wrth Sweetwater Authority to discuss their JOining the JPA He stated that the matter IS expected to go before their cornrmttee and board this month and that we should hear soon the outcome of discussions He thanked staff for the Implementation of the Blue Cross Health Care program He mdicated that he had requested In past a quarterly report on the District's consultants and their fees and a quarterly report on legal matters and fees for on- gOing matters He asked If staff might focus on prov.dinq these reports at the end of each quarter and that he would very much appreciate It DIrector Lopez thanked General Manger Watton for the good work that he IS accompllshmg at the District He stated that he also appreciated his approach In workmg With the directors 15 ADJOURNMENT With no further business to come before the Board,Vice President Lopez adjourned the meeting at 5 48 P m ATTEST 18