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HomeMy WebLinkAboutMinutes - EVWD Board of Directors - 01/27/2016 Approved February 24, 2016 EAST VALLEY WATER DISTRICT January 27, 2016 REGULAR BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 4:30 p.m. PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Justine Hendricksen, District Clerk; Shayla Gerber, Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Morales declared the public participation section of the meeting open at 4:31 pm. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Morales-Smith) that the January 27, 2016 agenda be approved as submitted. CLOSED SESSION The Board entered into Closed Session at 4:31 p.m. as provided in the Ralph M. Brown Act Government Code Sections 54956.9(d)(1) to discuss the item listed on the agenda. THE BOARD RECONVENED THE MEETING AT 5:31 P.M. L Minutes 01/27/2016 smg ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2: The Board voted unanimously (5-0) to approve the settlement agreement between East Valley Water District vs. San Bernardino International Airport Authority and to accept the dismissal of the lawsuit. vii Highland resident, Mr. Wayne Brown, led the flag salute. ROLL CALL PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: None PUBLIC COMMENTS Chairman Coats declared the public participation section of the meeting open at 5:40 pm. There being no written or verbal comments, the public participation section was closed. DISBURSEMENTS M/S/C (Morales-Shelton) that disbursements for Checks #246395 through #246668 which were distributed during the period of December 1, 2015 through December 31, 2015, bank drafts and ACH Payments in the amount of $3,908,628.89 and $492,285.51 for payroll and benefit contributions. Total Disbursements for the period $4,400,914.40 be approved as submitted. ACCEPT AND FILE THE FINANCIAL STATEMENTS AS OF, AND FOR THE PERIOD ENDED, DECEMBER 31, 2015 M/S/C (Morales-Shelton) that the Board accept and file the financial statements as of, and for the period ended, December 31, 2015. ACCEPT AND FILE THE INVESTMENT REPORT FOR THE QUARTER ENDED DECEMBER 31, 2015 M/S/C (Morales-Shelton) that the Board accept and file the investment report for the quarter ended December 31, 2015. RECEIVE AND FILE THE LEGISLATIVE UPDATE AND PRESENTATION The District is currently coordinating with the legislative advocacy team to travel to Sacramento and meet with various elected officials. Current projects and programs have increased the need for the District to engage with committees and legislators outside of the East Valley Water District boundaries. 2 Minutes 01/27/2016 smg Representatives from the Onate Group and Gonzales, Quintana Et Hunter, LLC presented to the Board legislation that could impact the District. Items discussed were: • Drought regulations o The State Water Resource Control Board will announce revisions to the emergency conservation regulations which may include credits and adjustments of up to eight percent to urban water suppliers' conservation standards. The Assistant General Manager stated that he did not expect any significant impact on East Valley Water District. • Water quality requirements • Water conservation programs • Potential funding opportunities • Human resource requirements o SB 854 Prevailing Wage Requirements went into effect as of January 1, 2016 that states contractors and subcontractors must pay a fee to (register) obtain a permit to place bids and perform maintenance work, which includes landscape work on public works projects over $1,000. The General Manager/CEO stated that staff and the Board of Directors are considering amending contracts to keep in compliance with new legislation; SB 854 will have a huge impact on East Valley Water District's costs, which are forecasted at a 25 to 30 percent increase in service contracts that perform maintenance work. M/S/C (Morales-Carrillo) that the Board receive and file the legislative update and presentation as submitted. MEMORANDUM OF UNDERSTANDING FOR THE BUNKER HILL BASIN CONJUNCTIVE USE PROJECTS San Bernardino Valley Municipal Water District's General Manager, Doug Headrick, explained to the Board the significance of East Valley Water District's General Manager/CEO executing the Memorandum of Understanding for the Bunker Hill Basin Conjunctive Use Projects and asked for East Valley Water District's partnership in the project. Mr. Headrick stated that conjunctive use, the storing of surface water in a groundwater basin in wet years and withdrawing it from the basin in dry years, has been contemplated for many years in the Bunker Hill Basin; that it is no longer an effective way to store water; that the Bunker Hill Basin Conjunctive Use Project will increase the dry year water production of local groundwater basins and that multiple agencies partnering together will expand the Conjunctive Use facilities and sustain management of groundwater resources. kM/S/C (Morales-Shelton) that the Board authorize the General Manager/CEO to execute the Memorandum of Understanding for the Bunker Hill Basin Conjunctive Use Projects. 3 Minutes 01/27/2016 smg GROUNDWATER SUSTAINABILITY COUNCIL MEMORANDUM OF UNDERSTANDING The General Manager/CEO stated that the Bunker Hill Basin management is crucial. In an effort to build on the foundation of existing laws and regulations, contracts and judicial decrees, and the recent enactment of the Sustainable Groundwater Management Act of 2014, the local water producers intend to enter in an MOU to collaboratively develop a cooperative structure for the groundwater in the Upper Santa Ana River Groundwater Basin. The goal is to ensure that these groundwater basins are managed in a manner that will be reliable over the long-term. Mr. Doug Headrick, General Manager for SBVMWD, stated that it is important that the Board accept the MOU Bunker Hill Basin and the MOU for the Groundwater Sustainability Council at the same time. M/S/C (Carrillo-Shelton) that the Board authorize the General Manager/CEO to execute the Groundwater Sustainability Council Memorandum of Understanding. MISCELLANEOUS FEES UPDATE The Chief Financial Officer provided a presentation to the Board regarding miscellaneous fees which included reviewing current, new and proposed fees for Finance, Engineering, and Operations. Director Morales and Vice Chairman Carrillo both agreed that miscellaneous fees should be reviewed every two years. M/S/C (Morales-Shelton) that the Board schedule a Public Hearing on February 24, 2016 to consider adoption of adjustments to certain miscellaneous fees. BOARD OF DIRECTORS' REPORTS Director Smith reported on the following: he has been receiving Board of Director training by the District Clerk; he spent the last three days at the California Special Districts Association (CSDA) Leadership Academy receiving training on becoming a new director. Director Shelton reported on the following: on January 19th she attended the scoping meeting for the Sterling Natural Resource Center (SNRC) at East Valley Water District Headquarters; on January 21st she attended the Del Rosa Neighborhood Action Group where the General Manager/CEO spoke on tiered rates and the SNRC; and on January 26th she attended the Highland Chamber of Commerce monthly luncheon where EVWD's Assistant General Manager spoke on conservation. Director Morales reported on the following: he attended the first scoping meeting regarding the SNRC at San Bernardino Valley Municipal Water District (Valley District) on January 14th; he attended the Recycled Water Ad-Hoc Committee and toured the wastewater facilities of the City of San Bernardino; on January 26th he attended the Highland Chamber of Commerce monthly luncheon where EVWD's Assistant General Manager spoke on conservation. 4 Minutes 01/27/2016 smg Vice Chairman Carrillo reported on the following: he attended the scoping meeting regarding the SNRC at Valley District on January 14th and he met with the General Manager/CEO and the Chairman of the Board to review the agenda. Chairman Coats reported on the following: he attended the CSDA Leadership Academy for returning students, and attended Valley District's meeting where they approved to pre-purchase switchgears and PLC's for the City Creek Hydroelectric Project. Information Only. GENERAL MANAGER/CEO REPORT The General Manager/CEO reported on the following: On January 21st he held a community conversation for the Del Rosa Neighborhood Action Group and provided a District update; on January 22nd he attended a networking meeting for local special district managers hosted by CSDA; that Conservation Commission interviews have been scheduled with potential candidates. He informed the audience that he will be out of town from February 4th and returning on February 16th and he will not be able to attend the February 10th regular board meeting, the Assistant General Manager will assume his roll at that time. The General Manager/CEO provided an update on the methodology of naming the Sterling Natural Resource Center. He stated that Mr. A.E. Sterling was a local visionary in the community; he was a longtime resident and property owner and participated in different activities across the valley; that he was the founding member of the Highland Chamber of Commerce and invested in many private water companies in the region. The General Manager/CEO discussed concerns regarding the Flint Michigan lead issue and stated that East Valley Water District performs stringent testing regimens to insure that the water is safe for drinking. Information only. LEGAL COUNSEL REPORT The District's Legal Counsel reported an update regarding the lawsuit between East Valley Water District Vs Frank A. Reichl, litigation regarding price fixing relative to the sales of liquid aluminum sulfate; that the class action suit has been filed in Pennsylvania with lawyer Patrick Milligan, along with several other agencies; that it is incumbent on the court to determine procedural rules for the case, govern how the parties will conduct discovery and to claim which agency will be the lead plaintiff; that it would benefit East Valley Water District to be the lead agency; that there would be monetary and financial incentives to be the lead agency. He stated that the underlying criminal case is resolved and that they entered pleads of guilty. Information only. 5 Minutes 01/27/2016 smg BOARD OF DIRECTORS' COMMENTS Director Smith thanked the administration staff for the continuing education on information pertaining to the District and serving as a member of the Board. Director Morales informed the Board that he may have a scheduling conflict and may not be able to attend the first regular board meeting in March. Chairman Coats thanked everyone for coming this evening and he observed at the CSDA Leadership Academy that other water agencies are lightyears behind EVWD and he is very proud of staff and the Board for all their hard work. He asked the audience to support the Sterling Natural Resource Center. Information only. ADJOURN The meeting adjourned at 7:42 p.m. eq' ' Ronal L. Coats, Chair John J. Mura, cretary 6 Minutes 01/27/2016 smg