7:30 p.m.
The Board of Directors of the San Benito County Water District convened in regular session at 7:30 p.m. at 30 Mansfield Road, Hollister, CA. Members present were President Ken Perry, Robert Swanson, James DeLaCruz and Douglas Keck, Vice-President Tobias was absent. Also present, District Manager/Engineer John S. Gregg, District Counsel David Pipal and Administrative Services Officer Maria Alfaro. President Perry presided.
The meeting was called to order at 7: 30 p.m.
a. Pledge of Allegiance to the Flag.
President Perry lead the Pledge of Allegiance to the Flag.
b. Approval of Agenda.
Upon motion duly made and seconded, the Agenda for the meeting was unanimously approved.
c. Public Input: Members of the Public are Invited to Speak on any Matter not on the Agenda.
President Perry asked the public if there was anyone who wished to speak on any matter not on the Agenda.
There being none the public input session was closed.
CONSENT AGENDA:
1. Approval of Minutes for April 28, 2004, regular meeting and May 18, 2004, special session.
2. Allowance of Claims
Upon a motion duly made and seconded, the Consent Agenda was unanimously approved.
REGULAR AGENDA:
3. Consideration of Resolution of Intention to Create Zone of Benefit and Undertake a Project, Fairview Road Water System
District Manager/Engineer John S. Gregg noted to the Board of Directors that the memorandum provided a description of the project. Mr. Gregg noted that the Fairview Road Water System is a small system with 10 connections and 4 landowners, which have all requested for the San Benito County Water District to create a zone of benefit. A fact sheet was been mailed out to all landowners describing the process.
Jeff Cattaneo, Deputy District Engineer presented an outline with objectives and steps toward formation. Mr. Cattaneo noted that rates and charges have been determined for the cost of operation. There are no CEQA requirements for this project. If District goes forward with project a Transfer Agreement will be presented at a later date. Staff recommends approval of the proposed resolution.
Director Swanson asked if the water was potable and what was the source. Mr. Catteneo noted that it was potable and that the source was from a well which falls under Department of Health Services requirements. Mr. Swanson asked if there was a back up source of water. Mr. Cattaneo noted that there was a back up storage tank but that water rationing and bringing in water were also possibilities. Mr. Cattaneo noted that rates and charges would include funding for capital improvements and that all costs were recovered through monthly rates and charges. Mr. Cattaneo told the board that the per service connection charge would be sixty three dollars per month.
President Perry asked how old and what shape the system was in. Mr. Cattaneo noted that the well was approximately 20 years old and that the zone would have to stand financially by itself.
Upon a motion duly made and seconded Resolution of Intention to Create Zone of Benefit and Undertake a Project, Resolution 2004-13 was unanimously approved.
1. Report on Formation of Zone of Benefit, Zone 102, Comstock Estates
Deputy District Engineer Jeff Cattaneo noted to the board that in 2001 the District adopted resolution number 2001-14. As part of the agreement the District agreed to charge $145.41 per month for 12 months for the operation of the water system and to fund a replacement fund. The District will be reviewing rate structures next spring to determine if the rates were appropriate.
Mr. Cattaneo noted the water quality was generally good and that there was a small corrosion problem. Mr. Cattaneo noted that staff will be bringing rates and charges back to the board at its regular June meeting for the board approval to move forward with the Transfer Agreement which has been reviewed and approved by legal counsel. Operation system to be transferred by August 1, 2004.
Director DeLaCruz asked if interest earned on account goes back to account. District Manager/Engineer John S. Gregg noted that it did.
2. Report on Using CALSIM II for Long-Term Planning-San Felipe Water Reliability
District Manager/Engineer John S. Gregg introduced Mr. Bob Ellis of Montgomery Watson Harza. Mr. Ellis noted to the Board that a report on Using CALSIM II for Long-Term Planning-San Felipe Water Reliability has previously been presented to the Water Treatment Committee. Mr. Ellis provided a Power Point Presentation to the Board and discussed the objectives of the study along with a background. Mr. Ellis noted that this study replaces previous models developed by the USBR for CVP and DWR. Mr. Ellis noted that the study used 73 years of historical water conditions and uses two levels of development, 2001-2020 with an extension to 2030 in progress. CALSIM II is the model of choice for statewide planning efforts. Mr. Ellis told the board that report is continuously updated.
District Manager/Engineer John S. Gregg discussed with the board that other issues dealing with a system with mechanical problems, however, this does not represent significant issues.
3. Report on San Benito County Recycled Water Project
District Manager/Engineer John S. Gregg presented Tom Richardson of RMC. Mr. Richardson provided a Power Point presentation to the Board. Mr. Richardson noted that this was a first phase draft report and that the final product would be the basis to make a decision whether to proceed to Phase II. Mr. Richardson noted that this project would also be presented to the Water Resources Board next week.
Mr. Richardson discussed the basis of the study and noted the review of the sources of recycled water. The preliminary recommendations have not changed from those previously presented and discussed the recycled water program elements. Mr. Richardson presented the project costs and identified -the benefits and discussed the benefits of quantification. Mr. Richardson noted to the board the appropriateness of the Regional Water Recycling appears to be validated and that the great potential of benefits out weigh the cost. Mr. Richardson noted that at this point they are done. The facility plan draft is to be complete by November 2004 and final report complete by March 2005.
Director Swanson asked where the District was going with this project. District Manager/Engineer John S. Gregg noted that the intention was to move forward.
Director Swanson asked who would pay for this project. District Manager/Engineer John S. Gregg noted that there was a cost sharing agreement through the member agencies of the Water Resources Association, the City of Hollister, the City of San Juan Bautista, the Sunnyslope County Water District and the San Benito County Water District.
Discussion was had regarding the effect to the San Juan Valley. Marc Nakamoto of RMC noted that with a regional approach all problems will be embraced.
Director Swanson noted that he supported the Water Recycling project.
4. Report on Hollister Area Water Treatment Plants
District Manager/Engineer John S. Gregg discussed the issues regarding the reliability of San Felipe water and the need for urban supply with quantity and quality. Mr. Gregg noted that the City of Hollister is committed to salt management, the quality of wastewater, the San Juan Valley and urban area water supply and that the City was currently working on a scope of work. There is currently a Memorandum of Understanding, which notes what needs to be done and how it will done. The District will take all appropriate actions.
8. Report on Hollister Wastewater Treatment Plants
District Manager/Engineer John S. Gregg noted that the concern at staff level is that millions of dollars can be spent on addressing all the needs. The District has made comments on the draft environmental document and on the Notice of Preparation.
9. Report on San Juan Water System/San Juan Infrastructure Grant
District Manager/Engineer John S. Gregg noted that interaction by District is on hold. A report will be made to the board committee at a later date. The matter is currently dormant.
10. Review/Discuss SB 1272 and Direct Legal Counsel and Staff
District Manager/Engineer John S. Gregg noted to the Board that Senate Bill 1272 was defeated in committee. Mr. Gregg noted that he will be preparing letters for the members that voted no for President Perry’s signature.
11. Committee Reports:
a. Water Treatment Committee (Tobias/Keck)
District Manager/Engineer John S. Gregg discussed that the Committee had concerns not to allow institutional issues to wait to the last minute. It was noted that an MOU would be presented to the Board.
Director Keck noted that there were a few details to work out.
b. Audit & Budget Committee (Swanson/DeLaCruz)
District Manager/Engineer John S. Gregg reported that he was working with the Committee on financial reports, on how Reserves is no longer the operative term, it is now “Designations”, will discuss the next step of the budget and the Governor’s reduction of 40% of the ad valorem tax.
12. District Manager/Engineer’s Report:
a. 2004-2005 Water Supply
District Manager/Engineer John S. Gregg provided the Board with information of snow conditions.
b. District Budget
District Manager/Engineer John S. Gregg noted that there will be a series of meeting in early June.
c. USBR Water Service Contract Negotiations
District Manager/Engineer John S. Gregg noted to the Board that the negotiations were going forward and that the government was not complying with the schedule. Mr. Gregg noted that there were certain key issues at the San Felipe division level. An issue item is the M&I portion and the current rate of 3.5%. The USBR would like to increase to 5.116% this will be discussed in a technical session meeting next month.
d. Groundwater Management Plan Update PEIR
District Manager/Engineer John S. Gregg discussed with the board that the District is moving forward and that a special meeting has been scheduled for June 9, 2004. It is the District’s assumption that in the District’s USBR contract that the District needs an analysis by 2005.
There being no further business, the meeting adjourned at 9:30 p.m.
Kenneth Perry, President
Maria E. Alfaro
Administrative Services Officer