SANTA YNEZ RIVER WATER CONSERVATION DISTRICT
IMPROVEMENT DISTRICT NO. 1
MINUTES
A Regular Meeting of the Board of Trustees of the Santa Ynez River Water Conservation District, Improvement District No. 1, was held at 5:30 p.m. on Tuesday, May 20, 2008.
Trustees Present: Harlan Burchardi Lee Bettencourt
Matt Loudon Jeff Clay
Harry Poor
Trustees Absent: None
Others Present: Chris Dahlstrom Gary Kvistad
Karen King Mary Martone
I. Call to Order
President Burchardi called the meeting to order at 5:34 p.m.; he stated that this is a Regular Meeting of the Board of Trustees. The President noted that a quorum of the Board of Trustees was present; Trustee Loudon joined the meeting at 5:40 pm.
II. General Manager/Secretary Report
Mr. Dahlstrom presented an Affidavit of Posting of the agenda, along with a true copy of the agenda for this meeting. He stated the agenda was posted in accordance with the California Government Code commencing at Section 54950 and also pursuant to Resolution No. 340 of the District.
President Burchardi directed that the Affidavit be filed as evidence of the posting and of the agenda items contained therein.
III. Approval of Special Meeting Minutes of April 22, 2008
The Minutes of the Special Meeting of April 22, 2008 were presented for Board consideration. President Burchardi requested minor corrections. It was MOVED by Trustee Poor, seconded by Trustee Clay, and carried by a 4-0-1 voice vote to approve the Special Meeting Minutes as corrected.
IV. Additions or Corrections, if any, to the agenda
Mr. Dahlstrom stated that there were no additions or corrections to the agenda.
V. Public Comment
President Burchardi noted that there were no attendees present from the public. No public comment was provided during this agenda item.
Mrs. Mary Martone was present for the meeting.
VI. Consent Agenda
Mr. Dahlstrom stated that he would like to pull CA-3 for discussion, and add agenda item VIII. I – CCWA/SWP Montecito Water District – Water Request. It was MOVED by Trustee Poor, seconded by Trustee Clay and carried by a unanimous voice vote to add agenda item VIII.I. CCWA/SWP Montecito Water District – Water Request.
Trustee Poor MOVED the Consent Agenda items are approved as presented, excluding CA-3; the motion was seconded by Trustee Clay and carried by a unanimous voice vote.
VII. MANAGER’S REPORT - STATUS, DISCUSSION AND POSSIBLE ACTION ON THE FOLLOWING SUBJECTS
A. District Administration
1. Financial Report
Mr. Dahlstrom provided the Board a review of the current month’s revenue and expenses. He stated that the revenue exceeds the expenses by $455,464.23, which is mainly due to a special tax assessment payment in the amount of $321,771. He stated the LAIF account balance was $6,589,674.51. He also reported that a FEMA reimbursement account was $910,786 to date.
2. Preliminary FY 2008-2009 Budget
Mr. Dahlstrom stated that the Board packet included a staff report explaining the preliminary FY2008-09 Budget. He referred to the staff report and summarized each revenue category including using the water rate study as the basis and adjusting those estimates using the 9 month actual with projections for the year end anticipated revenues. He indicated that domestic and rural residential sales were up this year and projected the conservative increases and minimal increases in revenues in the agricultural revenue category. He also explained the anticipated revenues from water purchases by the City of Solvang and Montecito Water District. He highlighted some expected reductions including interest income and capital facilities fees.
He then continued by explaining the O&M expenditures and increases across each category including source of supply purchases, infrastructure repairs and maintenance, pumping and power, transmission and distribution labor and materials costs; much of which the cost increases are due to the direct and indirect effects in fuel and oil price increases. He also detailed the General and Administrative expenditures highlighting the cost increase in health insurance and retirement benefits, general legal representation, and cost of living adjustments of 4.14%.
A brief summary of debt service and the addition to reserves for capital improvement projects was provided. He summarized that less revenues will be available to divert to the addition to reserves funding categories after the operating expenditures are covered. Mr. Dahlstrom also detailed for the Board the Other Expenses category including special studies and programs with the funding of the Cachuma Project continuing operations involving the Fish Management Plan/Biological Opinion, SWRCB hearing and the involvement with CCRB. Then he explained the various required capital projects and the funding reductions in various projects for the year.
He then concluded that a revenue shortfall will occur in the amount of $788,128 to meet the operating expenditures, debt service, special studies as well as capital projects which will require reserve funding.
He and the Board turned their attention to the budget for joint Fisheries activities conducted by the CCRB/ID No1 partnership. Mr. Dahlstrom indicated that the District does not approve CCRB’s budget but the Board determines the amount of funding that ID#1 contributes to various approved programs undertaken either jointly or separately by the agencies. Mr. Dahlstrom referred to the budget notes in the packet and stated he revised the District’s 10.31% cost share of CCRB funding by evaluating each specific line item, then determined the cost participation based on the joint activities for the Cachuma Project and those that CCRB conducts as part of that agency doing business for the four south coast Cachuma Member Units only. The pro-rata share or an adjusted calculation was made by line item because of separate but parallel District representation and staff level of effort or feasibility of certain projects. As a result, the District’s cost contribution was reduced from $207,171 to $186,445. He also indicated that the CCRB budget may change.
The Board members voiced their concerns regarding the CCRB budget and requested that the General Manager further review and decrease the District’s funding participation in the CCRB budget to reflect participation in only the projects required by the biological opinion and approved by the District.
He asked that the Board further review the preliminary budget and to let him know if they had any other questions.
It was MOVED by Trustee Poor, seconded by Trustee Loudon and carried by a unanimous voice vote to accept the preliminary FY 2008/09 budget but to direct and authorize the General Manager to make funding reductions and cost share in only those projects required under the biological opinion, that have grant funding, and projects approved by the District as noted on the CCRB FY08/09 budget.
3. Appropriation Limit
a) Calculations for 2008/09 Appropriations
Mr. Dahlstrom explained that each year, in consideration of determining an appropriation, he is required to read the appropriation language related to Proposition 4. It states that appropriation limits are based on population percentage. The General Manager/Secretary announced that “…pursuant to Section 7910 of the California Government Code, a resolution will be presented for adoption by the Board of Trustees at its meeting June 19, 2008, which will set the limitations on appropriations for fiscal year 2008/09 under Article XIIIB of the Constitution of the State of California (Proposition 13) and that the documentation used in determining the appropriation limitations will be available in the District office for examination by the public for at least 15 days prior to the adoption of the proposed resolution. “
Mr. Dahlstrom presented an explanation of the appropriation calculations as provided by the State of California Department of Finance and applied to the District‘s special assessment limitations. He indicated that based on the computations for the appropriation limitation, the FY08/09 amount is $1,352,744. He reminded the Board that although the District can request up to the limitation amount for the special assessment, the Board has determined that $750,000 is consistent with each prior year and to meet the District’s financial obligations. The working calculations were included in the Board packet for review.
b) Review of Draft Resolutions to be presented for adoption at the June 17, 2008 Board Meeting
Mr. Dahlstrom explained that each year, the two resolutions accompany the Appropriations Limit determination and action on the Budget. He indicated that the language is consistent with prior year resolutions with certain updates.
1. Draft Resolution: A Resolution of the Board of Trustees of the Santa Ynez River Water Conservation District, Improvement District No. 1 Establishing the Appropriations Limit for the 2008-09 Fiscal Year Pursuant to Article XIIB of the California Constitution
2. Draft Resolution: A Resolution of the Board of Trustees of the Santa Ynez River Water Conservation District, Improvement District No. 1 Adopting the 2008-09 Budget and Requesting an Assessment Levy Required to Collect $750,000 for Voter Approved Contract Obligations
Mr. Dahlstrom informed the Board that the two resolutions would be presented for consideration at the June meeting.
c) Authorization to Post Public Notice for Appropriation Limit on May 27, 2008
Mr. Dahlstrom requested Board authorization to post the public notice regarding the appropriation limitation calculations. He indicated that this process is required at least 15 days prior to adoption of the proposed resolution and is typically noticed in the Santa Ynez Valley newspaper and posted at the District office for public review and comment. The newspaper publication dates will be May 29th and June 5th, 2008.
It was MOVED by Trustee Loudon, seconded by Trustee Poor and carried by a unanimous voice vote to authorize the General Manager to post the public notice as required beginning on May 29, 2008.
4. Building & Security Improvements
Mr. Dahlstrom stated that the Board packet included California State Assembly Bill 691 co-authored by Joel Anderson concerning Scrap Metal Theft. The bill will enforce strong action to stop scrap metal theft. Mr. Dahlstrom stated that due to the recent theft of copper wire at our facility, he would be sending a letter in support of AB691. The Board concurred with sending a letter in support of the bill.
5. Water Service Account #18130002 Ramirez
Mr. Dahlstrom stated that last month the Trustee Loudon received a letter from a District customer regarding her mother’s water service account. The Board was informed of the letter at the May meeting, and Mr. Dahlstrom stated that the letter would be a discussion item at the June meeting. Mr. Dahlstrom stated that Ms. Ramirez was invited to the Board meeting to discuss her concerns; she declined due to other commitments.
The Board packet included a copy of the May 7, 2008 letter and exhibits. Mr. Dahlstrom stated that he, Trustee Loudon and Ms. Martone met with Ms. Ramirez on May 16, 2008 and have addressed and resolved many if not all of her concerns and comments. Mr. Dahlstrom and Trustee Loudon discussed and summarized the meeting with Ms. Ramirez. Trustee Loudon mentioned that Mr. Dahlstrom and Ms. Martone did a great job with addressing Ms. Ramirez and her concerns and commended the entire staff for its public service.
6. Amending Resolution No. 655
a) Resolution No. 656 A Resolution of the Board of Trustees of the Santa Ynez River Water Conservation District, Improvement District No. 1 Amending Resolution No. 655 Approving and Authorizing the Water 2025 Challenge Grant for the Automated Meter Reading System Project
Mr. Dahlstrom stated that there was a slight change in the total project-funding amount for the Water 2025 Challenge Grant submitted last month and needs to be amended and resubmitted with Resolution 656. Mr. Dahlstrom recommends approval of Resolution No. 656.
It was MOVED by Trustee Loudon, seconded by Trustee Bettencourt, and carried by a 5-0-0 voice vote to adopt Resolution No. 655:
The Resolution was adopted by the following roll call vote:
AYES, Trustees: Harlan Burchardi
Lee Bettencourt
Matthew Loudon
Jeff Clay
Harry Poor
NOES, Trustees: None
ABSENT, Trustees: None
B. District Operations & Maintenance
1. 2005 Flood Emergency (FEMA-1577-DR-CA)
a) Upland Well #24 Construction Project (Tejas Canyon)
1. Award of Contract – Pump & Motor
Mr. Dahlstrom stated that the Board packet included a bid summary for the Well #24 pump and motor. He stated that there were four bids received and bid opening occurred on May 19 which he summarized for the Board. He stated that based on the bid process, Layne Christensen is the lowest responsible bidder at $64,900 for the pump and motor for Well #24.
It was MOVED by Trustee Loudon, seconded by Trustee Poor and carried by a unanimous voice vote to accept the bid, authorize the General Manager to sign the Notice of Award for Layne Christensen and approve the contract for the pump and motor for Well #24.
He also reported that electrical is on-going and Taft Electric is performing the work.
b) Upland Well #25 Drilling & Construction (Figueroa Mtn. Road)
Mr. Dahlstrom stated that Mr. Hanly and Mr. Moniot are teaming up to get the final electrical work completed for well #25. He expects the project to be complete by the end of June.
c) Upland Well #27 Drilling & Construction Project (Hwy 154/Royal Oaks)
Mr. Dahlstrom stated that Mr. Bob Hyland has purchased and will be installing the chlorine tanks and set up the chlorine feed system. He stated that staff still needs to perform the standard well flushing prior to turning the well water into the system.
d) Well #28 – Drilling & Construction Project
Mr. Dahlstrom stated that the Board packet included a May 14, 2008 letter from Office of Emergency Services approval of the change in location for well site #28, and other current correspondence relating to the project. Mr. Dahlstrom also mentioned that the Notice of Award approved at the April meeting was included in this Board packet for informational purposes only. Mr. Dahlstrom stated that contract for Bakersfield Well & Pump Company needs to be executed and recommends approval and authorization to sign the contract.
It was MOVED by Trustee Bettencourt; seconded by Trustee Poor and carried by a unanimous voice vote to authorize the execution of the contract documents with Bakersfield Well & Pump Company.
Mr. Dahlstrom stated that last month the Board authorized the GM to negotiation with Mr. Ron Davidson regarding the temporary right of access and use of his property. He stated that Mr. Tambini initially contacted Mr. Ron Davidson regarding the use of his property as well as the other specifics related to the project. He stated that Mr. Davidson is willing to work with the District and sign the temporary right of entry agreement. Mr. Dahlstrom stated that based on the right of entry agreement terms the District shall compensate Mr. Davidson (property owner) the sum of $10,000 upon execution of the agreement. Mr. Dahlstrom recommends his approval of the agreement and compensation.
It was MOVED by Trustee Loudon, seconded by Trustee Poor and carried by a unanimous voice vote to authorize the General Manager to sign the right of entry agreement and authorize compensation in the amount of $10,000 to Mr. Ronald Davidson.
2. 2760 Lucca Avenue – Main Line Relocation
Mr. Dahlstrom stated that the mainline relocation work commenced on May 14th at 2760 Lucca. He stated that Santa Ynez Valley Tree Care partially removed one tree that was directly over a section of the water main where the new connection is being made. He stated that there have been several interesting discoveries since work has begun, such as other utilities in District’s easement, interference with tree roots and a gas service line. He stated that the field crew also discovered that the water main line interconnects is a four-inch line not a six as stated in the District specifications. Mr. Dahlstrom stated he has been working with Mr. Hyland and the field crew since the inception of the project to effectively get around the obstacles of the project. He stated that more information would be provided as it becomes available.
C. Water Service for/Lot Splits/Projects
1. Santa Ynez Indian Reservation
a) Casino/Consolidation and Expansion
1. Santa Cota Road Large Diameter Water Main Line Replacement, Alignment and Loop
Mr. Dahlstrom stated that the Board packet included an April 21, 2008 letter from Mr. Armenta in response to our March 27, 2008 letter addressing plan check corrections for the water main replacement at Wonanee. The Tribe’s letter disputes the requirement to upsizing the main from an 8-inch to a 12-inch with crossing Hwy 246 due to the addition of water and fire demands for the proposed community center. This changed the project and required further review by District staff and plan revisions.
Mr. Dahlstrom stated that he and Mr. Kvistad met with Mr. Armenta and the Tribe’s legal counsel Sam Cohen to discuss the requirements and several other issues relating to the project. As reported, Mr. Armenta indicated that the Band will not upsize the main and threatened the use of the easements for all the water mains on the Reservation including lateral 1-1, the District’s large diameter transmission main. Mr. Armenta indicated that the easement expires in two years and the Band will not allow future use. Mr. Dahlstrom stated that he and Mr. Kvistad will look into the easements.
The Board commented that should the Wononee project not proceed as required, which is part of the Phase II agreement, along with the granting and use of the easements, water service would be terminated. This matter will be brought back to the Board at the next meeting.
b) Via Juana Road Widening Project
Mr. Dahlstrom stated that there was no new information to report.
c) Santa Cota Road Storm Drain Project
Mr. Dahlstrom stated the drop inlets have been complete and road work is in-progress. He expects this project to be complete within the next month.
2. Santa Ynez Community Services District
a) Main Line Extension – 1070 Faraday
Mr. Dahlstrom stated that the District’s field crew with assistance from the SYCSD crew has completed the installation of the main line extension at 1070 Faraday. He stated that they did a great job with the coordination, shut down, installation of the line, and pressure test and disinfection process. He stated that the Bac-T test passed and now a Notice of Completion is required to be filed and recommend approval.
It was MOVED by Trustee Bettencourt, seconded by Trustee Loudon and carried by a unanimous voice vote to authorize the General Manager to sign and file the Notice of Completion for the SYCSD mainline extension at 1070 Faraday.
3. Dunn School – 2555 W. Highway 154, Los Olivos
Mr. Dahlstrom stated that the Board packet included a copy of the Letter of Credit issued by Dunn School for the water main extension project. Mr. Dahlstrom stated that Reach A of the project is almost complete which he expects to be finished by the end of the week. The pressure test should occur next week on Reach A and once complete, central reach of the main installation would immediately follow. He will provide a status report at the June meeting.
4. Coffin Water Main Line Extension – Parcel Map 14,598
Mr. Dahlstrom stated that the Board packet included an executed Amendment to the Water Main Line Extension Agreement signed by Mr. & Mrs. Coffin. He stated that the surety in the amount of $130,517.14 has been secured and a pre-construction meeting took place in March. Mr. Dahlstrom reported that staff has acquired an easement from the adjacent property owner (Rosenberg family) for the connection with the 12-inch 6.0cfs water transmission main. He stated that the project is moving along as planned, work will commence within the month.
5. McComb Water Main Line Extension – APN 139-040-038 -2245 Coyote Creek
Mr. Dahlstrom reported that the final plans have been reviewed and deemed complete and approved. Mr. Dahlstrom reported Mr. McCombs arranged for and his engineer acquired an additional easement from the adjacent property owner for the District to extend the main over the bridge crossing in the future. He stated that work would commence upon receipt of the surety from Mr. McCombs.
VIII. REPORT, DISCUSSION AND POSSIBLE BOARD ACTION ON THE FOLLOWING SUBJECTS:
A. Cachuma Conservation Release Board
1. Report on Board Meeting
Mr. Dahlstrom stated that the Board packet included the April 28, 2008 CCRB agenda. He and Trustee Loudon summarized the topics discussed at the meeting including the Joint legal Advocacy Agreement status and issues with Montecito Water District and City of Santa Barbara signing the agreement, and the CCRB budget including joint fish enhancements projects with the District. He stated that the CCRB FY08/09 budget was presented by Ms Rees and was approved at the meeting. He also mentioned that following the CCRB approval of the budget, a revised budget was received by District staff today, May 20, 2008 which included a salary increase for Ms. Rees. This new budget will require District staff to review for other possible changes.
Several of the Board items were postponed due to absence of the primary CCRB members.
Mr. Dahlstrom and Trustee Loudon then reported on CCRB Special meeting held on May 19th. Ms Rees reported on status of the JLAA that MWD postponed its decision to sign and opposing comments were provided by Director Shakowitz of MWD that BB&K should not represent any party including IDNo.1. Mr. Hair, legal counsel of COMB also opposed the agreement. The City indicated that the City’s attorney is reviewing the agreement. She also reported that the CCRB final budget is being ratified by all CCRB members and IDNo.1 will approve it as part of its budget with the full cost sharing expectations. Mr. Dahlstrom explained that all cost sharing will be based on the CCRB approved budget and those projects that are grant funded, approved by the Board and part of the Biological Opinion/Fish Management Plan.
Other CCRB items included a presentation by Tim Robinson to the American Fisheries Society where he reported an unprecedented year for steelhead by finding 17 fish. Mr. Dahlstrom said that the report to the AFS was from CCRB and COMB with no mention of ID No.1. Also, Tim Robinson first mentioned that Quiota Creek project crossings 7 and 8 are set for this coming fiscal year at a cost of $500,000. Mr. Dahlstrom stated this has not been discussed by CCRB or approved prior to this meeting.
He also reported that Tom Mosby of MWD requested help to meet their water demands and asked that ID No. 1 sell water up to 500 AF.
B. Cachuma Operations and Maintenance Board
1. Report on Board Meeting
Mr. Dahlstrom stated that Board packet included the April 28, 2008 COMB Meeting agenda. He and Trustee Loudon reported that most of the items related to the South Coast member units only, and provided a report on the Quagga Mussel. The Board reiterated their comments that ID#1 will not be funding any costs, including personnel or equipment because the County Park manages boating in the recreation area and must assume the liability should an infestation occur.
Mr. Dahlstrom mentioned that the Board also discussed the capital improvement plan in the amount of $26 million. Trustee Loudon stated that he explained that the District would only support the bond but not part of it or responsible for the funds and excluded in the $3 million specified for the COMB building improvements.
Mr. Dahlstrom stated that the Board packet included a May 13, 2008 memo from COMB’s legal counsel William Hair, regarding the responsibility of a potential quagga mussel infestation. Mr. Dahlstrom also mentioned that there was a special meeting held on May 19, 2008 to further discuss the quagga mussel and noted that Ms. Rees stated that COMB had extra money that could be contributed to costs associated with prevention measures for the quagga mussel. Mr. Dahlstrom stated that not all of the other Member Agencies have available funding to actively participate. He also said that each COMB member weighed in on the proposal by Ms Rees to use excess COMB funds. The City and Goleta Water District supported funding the county for the Quagga mussel prevention projects in the amount of $270,000 the first year, and the other three members stating that no funding would be approved for the county. Mr. Dahlstrom stated that no decision was made regarding the proposal for cost sharing of preventative measures and COMB would be scheduling a special meeting for this item.
C. Santa Barbara County
1. Madera Street Abandonment
Mr. Dahlstrom stated that the board packet included a memo dated April 17, 2008 from Brian Tetley, SB County Planning & Development representative. He briefly discussed the content of the memo and requirements if the District were to build out our current property which included a fire department requirement for an access road and cul-de-sac. He stated that more information would be provided in closed session.
D. Santa Ynez River – State Water Resources Control Board
1. WR Order 94-5/Cachuma Project Permit DEIR
Mr. Dahlstrom stated that there is no new information from the SWB relating to the State Board proceedings or a decision on the status of the RDEIR.
E. Cachuma Project
1. Water Supply – Fish Surcharge/Spill Status
Mr. Dahlstrom stated that the lake level was at 752.7’ and would not reach the target level at 753.0. He stated the storage level is projected to be about 1,500 AF short of 9,200 AF with a full 3’ surcharge. He stated that he would be meeting with the Bureau of Reclamation representatives on June 12, 2008 and would provide a report at the June meeting.
2. Bureau of Reclamation Resource Management Plan/Contract Renewal Lake Cachuma Park
Mr. Dahlstrom stated that there was no new information to report on this item.
3. National Marine Fisheries Steelhead Recovery Plan
Mr. Dahlstrom stated that the recovery plan has not been released at this time and that staff has been working with the NMFS regarding alternatives relating to the SY Fish passage program.
4. Cachuma Lake Oak Tree Restoration Program
Mr. Dahlstrom stated that Melinda Fournier is currently working on the northwest side of the dam. He stated that she has planted trees and hydro seeded in the area.
5. Lake Cachuma Recreation – Quagga Mussel
This item was discussed earlier in the agenda under COMB.
