September 29, 2004

Regular Meeting

7:30 p.m.

 

          The Board of Directors of the San Benito County Water District convened in regular session on September 29, 2004, at 7:30 p.m. at 30 Mansfield Road, Hollister, California.  Members present were President Ken Perry, Directors Bob Swanson, Douglas Keck, and James DeLaCruz. Also present, District Manager/Engineer John S. Gregg, District Counsel, David E. Pipal, Deputy District Engineer Jeff Cattaneo and Administrative Services Officer, Maria E. Alfaro.  Vice President John Tobias was absent.  President Perry presided.

 

CALL TO ORDER

 

The meeting was called to order at 7:30 p.m.

a.       Pledge of Allegiance to the Flag.

President Perry led the Pledge of Allegiance.

b.       Approval of Agenda

President Perry asked District Manager/Engineer John S. Gregg if he had any items to move on the agenda.  District Manager/Engineer John S. Gregg noted that items 6 and 7 were to be removed from the agenda.

Upon a motion duly made and seconded. Items 6 and 7 were removed.

c.       Public Input:  Members of the Public are Invited to Speak on any Matter not on the Agenda.

President Perry invited the public to speak on any item not on the agenda.  There being none, the public input session was closed.

 

CONSENT AGENDA:    

 

1.       Approval of Minutes: August 25, 2004                                          

2.      Allowance of Claims

Upon a motion duly made and seconded. The Minutes of August 25, 2004 and the Claims were approved unanimously.

 

REGULAR AGENDA:

3.       Accept Wright Road Landowners Petition Regarding City of Hollister Percolation Ponds

District Manager/Engineer John S. Gregg noted to the board that at the last regular meeting the landowners and residents of the Wright Road area presented a petition under the public input session.  Mr. Gregg recommended that the District formally acknowledge with a letter. 

Upon a motion duly made and seconded, the Board of Directors formally accepted the Petition Regarding the City of Hollister Percolation Ponds.

President Perry asked if anyone from the group wished to speak on this matter.  An member of the public asked if there was any update.  President Perry noted that the District was working on it.  That this would be forwarded to the Committee and noted that the District has been working with the City of Hollister regarding the Wright Road ponds. 

District Manager/Engineer John S. Gregg noted that the Water District, the County and the City has been in a series of meetings to address a broader range of issues with respect to water supply and waste treatment and waste disposal.  Our focus on waste disposal is to identify appropriate sites.  The Petitioner’s concerns regarding the quality of life and impact on property values are common with the District and County.   Mr. Gregg noted that he felt it was the District’s responsibility to keep the interested parties apprised. 

President Perry noted that the District will keep on top of it.

 

4.       Approve Memorandum of Understanding between the San Benito County Water District and Service Employees International Union – SEIU, Local 817 (Field and Office Employees Representation Unit) and Authorize District Manager to execute on behalf of the District.

 

District Manager/Engineer John S. Gregg noted to the board that the District has concluded the meet and confer with SEIU.  An agreement has been considered by the employees and has been ratified.  The District negotiated with boundaries as set by the Personnel Committee.  As district negotiator, Mr. Gregg recommended the approval of the MOU.  Mr. Gregg noted that the board members had a summary in their board packet.  Mr. Gregg noted that the MOU was for a three-year term, and in his view represented a balance between direct compensation in terms of wages and salary and compensation attached to areas of continuing education and certification. 

 

Director DeLaCruz noted that the last contract was for two years and asked why this MOU was for 3 years.  Mr. Gregg responded that the District was concerned with long-term agreements with inflated settlements with others.  We did not want to participate in that process.

 

Director DeLa Cruz asked for the percentage wage increase for the previous years.   Mr. Gregg noted for the record that the general wage adjustment was increased by .75 for the first year and 1 percent for the second and third year.

 

Upon a motion duly made and seconded the Memorandum of Understanding between the San Benito County Water District and Service Employees International Union–SEIU, Local 817 (Field and Office Employees Representation Unit) and Authorize District Manager to execute on behalf of the District was approved.

 

 

 

 

 

5.       Review of Water Supply and Consider Authorizing Manager to Execute Agreement for the Transfer of CVP Irrigation and/or M&I Water.

 

District Manager/Engineer John S. Gregg made reference to long-term goals in developing a reliable water supply and making available water to our customers.  The District developed a Groundwater Management Plan to pursue that objective.    Over the short term, there are times that the District has an excess of our current customers’ interest and we have an opportunity to market that.  This is one of those years.  In August the board authorized the sale of 1500 acre-feet.  Since then, the Bureau of Reclamation has increased our M&I and Agriculture/irrigation supplies.  It is our opinion that we have 1000 acre-feet of water as temporary surplus.  We have received informal proposals from Meyers Farms Family Trust and The Water Group.  They are both prepared to pay approximately two-hundred dollars and acre-foot and noted that the transfers were a sort of “good will” among contractors at other times we may need to purchase water.  Mr. Gregg discussed the September summary which basically demonstrates that we have about 1100 acre feet of temporary surplus on the ag side and that we have to purchase a minimum of 7100 acre-feet this year of M&I water.  We have almost 3000 acre-feet of that, we would propose to use that for two things, first, as a buffer to ensure that we go this water year with a full San Justo reservoir, maximizing our supply and would consider exchanges or sales of any water.  We are discussing that possibility with the Santa Clara Valley Water District.

 

If the board finds the recommendation of the Manager appropriate, he recommended that the board authorize the District Manager to sign contracts for the transfer of water with Meyers Farms and The Water Group for 500 acre-feet of water each.  We would continue conserve M&I exchange or transfer options.

 

Director DeLaCruz asked what type of dollars and if those were restricted or unrestricted.  District Manager Gregg noted that the board has directed that these funds be put in an emergency water purchasing fund for instances like a severe drought.

 

Upon a motion duly made and seconded the board unanimously authorized District Manager John S. Gregg to sign contract for the transfer of water.

 

8.      Report on San Justo Seepage and Slope Stability.

 

Jeff Cattaneo, Deputy District Engineer, noted that this matter would not be a surprise to the longer tenured directors.  Mr. Cattaneo provided a brief history of the operation and seepage and slide issues.  San Justo is an off stream storage system.  Storage is approximately 1100 acre-feet.  The reservoir was built in 1985-1987 and was operational in 1987.  The soils are prone to slides.  Due to the geologic conditions, there is concern of seepage.  The original design included a liner similar to the type used in landfills.  In 1988, not long after the reservoir was operational, seepage and slides appeared.  Mr. Cattaneo showed photographs of the recovery wells. Currently, the slides of concern are in an area near Teledyne about 150 feet from their perimeter fence.  This slide is actively moving and one area has created a pond, which has water about 365 days a year.  Mr. Cattaneo also showed a photograph of a larger slide, which can be viewed, from San Juan Oaks looking towards the reservoir.  Mr. Cattaneo noted that at some point the slides will connect and the Bureau is concerned about dam safety.   The District has hired URS and they, along with the Bureau and Santa Clara Valley Water District are of the opinion that the slide is not an eminent danger to the reservoir.  The District does need to monitor but it will not be a problem for the next few years.  The Bureau is currently working on remedial activities.  Mr. Cattaneo discussed some of the options that the Bureau has suggested of which, estimated costs for such are approximately six million dollars. 

 

Director Keck asked if the slide close to Teledyne was likely to cause a problem to them.  Mr. Cattaneo noted that the District was concerned of the damage it would cause the property.  Mr. Cattaneo noted that it was close to storage buildings, not to any structures occupied by individuals.

 

President Perry noted this would be an expense of the Bureau.  Mr. Cattaneo noted that it was.

 

Director Keck asked if the six million dollars was the upper limit that the Bureau was suggesting.  Mr. Catteneo noted that that was the extreme. 

 

District Manager/Engineer John S. Gregg noted to the board that with respect to seepage problems those have been excluded from the acceptance of the facility, and as such, our concerns in this particular instance is the operations and on-going maintenance.  Mr. Gregg noted that a one proposal was to eliminate the use of the San Justo Reservoir.  We need to negotiate for service and protection.  The Santa Clara Valley Water District has helped in that regard. 

 

Frank Bettencourt asked if the liners would stop the leakage.    Mr. Cattaneo noted that installation methods have improved.  Mr. Gregg noted that the liner is not viewable and repairs to such liners have been made.

 

 

9.       Report on Pajaro River Flood Prevention Authority-Soap Lake Floodplain Preservation Project-Draft Initial Study and Negative Declaration.

 

Deputy District Engineer Jeff Cattaneo provided and executive summary. The Pajaro River Flood Prevention Authority was formed by the legislature in an action due to flooding issues in the Watsonville and Pajaro area.  Consists of member agencies, two representatives from Santa Clara County, from San Benito County and Monterey County along with representatives from the San Benito County Water District and San Benito County Public Works Department.   In 2001 a grant was received in the amount of $2,000,000 to evaluate flooding issue and to come up with solutions.  The Corps of Engineers is currently working on a flood prevention project on the lower Pajaro River.  

 

Mr. Cattaneo noted that the Soap Lake area was key in the project and a project is being proposed to develop a program for flood or conservation easements through other conservation agencies.  Comments on the draft that was received last Friday have a 32-day comment period.  The District will review and intends to comment to the Authority on the adequacy of the document.

 

Director Swanson noted that this was a good retention area.

 

Mr. Perry noted that some parcels had already been purchased.  Mr. Cattaneo noted that RMC will be making a presentation to the Water Resources Association next week on the entire project. District Manager/Engineer John S. Gregg noted to the board that comments would be presented to the full board at the next meeting.

 

10.    Report on Treated Water Systems

 

District Manager/Engineer John S. Gregg noted that a meeting was scheduled for a Water Treatment Committee to discuss the treated systems in Hollister.  The meetings are attended by the City of Hollister, the County of San Benito and the San Benito County Water District.  The group has discussed high water supply to the Hollister Urban Area as well as goals. 

 

Mr. Gregg noted that the Sunnyslope County Water District is currently working on evaluating an area near the San Benito River as a possible well site for drinking water.  This project may be a cooperative well between the Sunnyslope County Water District and the San Benito County Water District.  The work in currently underway.

 

11.     Report on Wastewater Treatment and Disposal

 

District Manager/Engineer John S. Gregg noted that the recycling of water needs to be a part of our water future.  There are persons and dollars committed to this issue.  Mr. Gregg noted that taking the salt out of water is a key point.  The Morgan Hill and Gilroy areas are looking to see if wastewater can be released into the Pajaro River.  Currently focused and productive discussions are being had.

 

Mr. Gregg noted that the Sunnyslope County Water District was reviewing technical draft discharge requirements.  The District is working to developing discharge requirements for the City of Hollister and Sunnyslope County Water District.

 

12.    Committee Reports:

 

a.      Ag Waiver Committee  (Swanson/Tobias) 

 

Director Swanson noted that data was still being collected.  A report will be given in November.

 

b.       Audit & Budget Committee (Swanson/DeLaCruz)

 

No report was given for this item.

 

13.    District Manager/Engineer’s Report:      

 

a.       USBR Contract Negotiations

 

District Manager/Engineer John S. Gregg noted that discussions are focusing on the repayment provision of the contract.  At a meeting last Friday with the regional director clarification and a high level of commitment on the repayment and renewal was discussed.  Mr. Gregg noted that the rate standards would be significantly altered.  The Bureau has committed to prepare and transmit to Washington.

 

b.       San Juan Valley Drainage

 

District Manager/Engineer John S. Gregg noted that we are at a point to have the Highway 25 gap project analyzed and alternatives to storage of groundwater.  The District will be proceeding with discussions with the County of San Benito and the City of San Juan Bautista.

 

c.       Paicines/Hernandez Fall Inspections

 

District Manager/Engineer John S. Gregg noted that the District recently inspected Paicines and Hernandez dams.  They looked good and require minor maintenance.  Hernandez is dry and an inspection of the repair outlet will be done.

 

The Division of Safety of Dams will be conducting an inspection on Monday.  The results of the inspection will be reported to the Board.

 

Director Swanson noted that seepage issues were a concern in the past.  Mr. Gregg noted that those issues had been resolved.   Mr. Gregg noted that minor repairs had been made on the spillway and brush issues had been addressed.

 

d.       FY 2004-2005 Revenue Assumptions

 

District Manager/Engineer John S. Gregg reported to the board that the District was working towards completion of the 04/05 budget.    We had indications regarding property tax revenue which were included in the final  budget is based on that 40% general property tax  transfer.  There is an additional consideration of 350 million dollar transfer requirement from enterprise districts.  Certain districts were exempted from the transfer and other districts had to make up the difference.  We will continue to monitor so see what effect this will have on us.  Mr. Gregg discussed two propositions on the ballot, Proposition 1A and Proposition 65 which deal with providing constitutional assurances and the District is free to take an informational on either of those.

 

e.       FY 2003/2004 Financial Report

 

With respect to the 2003/2004 Financial Report.  We are working with the Audit and Budget Committee.  This will be the first year that our report will be in full compliance with Governmental Accounting Standards Board.  It includes the management discussion and analysis, which include a written statement of what the numbers mean and a Statement of Certain Known Facts will also be included.  This item discusses the things that we know will affect our source of water or our source of revenue. 

 

f.       San Felipe Reach 1 Operations and Maintenance

 

District Manager/Engineer John S. Gregg reported to the board that he and Jeff Cattaneo have been working to re-focus on Santa Clara Valley Water District on reach 1, Pacheco Pumping Plan.  We have observed things like, the pumps should receive preventative maintenance.  The District has been able to have very open and productive discussions with budgeting and focused on constructive and productive meetings.  There are some major issues that need to be addressed and budgeting for replacing obsolete equipment.  Mr. Gregg noted that reasonable progress is being made.

 

There being no further business, the meeting was adjourned at 8:39 p.m.

 

 

 

                                                         

Kenneth A. Perry

President

 

 

                                               

Maria E. Alfaro

Administrative Services Officer