SANTA YNEZ RIVER WATER CONSERVATION DISTRICT
IMPROVEMENT DISTRICT NO. 1
MINUTES
A Special 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 Thursday, June 19, 2008.
Trustees Present: Harlan Burchardi Lee Bettencourt
Matt Loudon Harry Poor
Trustees Absent: Jeff Clay
Others Present: Chris Dahlstrom Gary Kvistad
Karen King Mary Martone
Kim Brown Steve Pappas
Robert Perry Tully Clifford
Doug Herthel Sam Cohen
Terri Harmon Guest
I. Call to Order
President Burchardi called the meeting to order at 5:30 p.m.; he stated that this is a Special Meeting of the Board of Trustees. The President noted that a quorum of the Board of Trustees was present; Trustee Clay was absent, Trustee Loudon joined the meeting at 5:33 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 Regular Meeting Minutes of May 20, 2008
The Minutes of the Regular Meeting of May 20, 2008 were presented for Board consideration. President Burchardi requested minor corrections. It was MOVED by Trustee Poor, seconded by Trustee Bettencourt, and carried by a 4-0-1-voice vote to approve the Regular 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 attendees present from the public. No public comment was provided during this agenda item.
Steve Pappas, Robert Perry, Doug Herthel, Sam Cohen, SY Band legal counsel, Terri Harmon and unknown guest were here for Item VII.C.1 - Santa Ynez Indian Reservation and Item VIII.H – District Reorganization-AB2686.
Tully Clifford, City of Solvang Public Works Director, was present for Item VIII.F & G.
VI. Consent Agenda
Trustee Loudon MOVED the Consent Agenda items be approved as presented; the motion was seconded by Trustee Bettencourt and carried by a 4-0-1-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 $233,365.58, which due to a LAIF interest payment and an increase in water sales for the month. He stated the LAIF account balance was $6,678,754.19.
2. Appropriation Limit
a) Resolution No. 658: 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
Mr. Dahlstrom referred to the calculations for the appropriation limit of $1,352,744 for the FY 2008/2009 special assessment and indicated that it had been presented to the Board for discussion at its meeting on May 20th, publicly noticed and posted as required and in accordance with the Government Code at least 15 days prior to Board action. He reported that no public comment had been received.
It was MOVED by Trustee Loudon, seconded by Trustee Bettencourt, and carried by a 4-0-1-voice vote to adopt Resolution No. 658:
The Resolution was adopted by the following roll call vote:
AYES, Trustees: Harlan Burchardi
Lee Bettencourt
Matthew Loudon
Harry Poor
NOES, Trustees: None
ABSENT, Trustees: Jeff Clay
b) FY 2008/2009 Budget
Mr. Dahlstrom stated that the Board was provided a final budget in the packet and a revised final budget in the handout material for this agenda item. He stated that there was a minor modification from the budget included in the packet. He stated that the only change was the increased cost associated with the Hydrology SYR Study prepared by Stetson Engineers, and the increased cost of Bureau of Reclamation’s Bradbury Dam Projects NARES Expense. Mr. Dahlstrom stated that he has evaluated specific categories of the budget that could be reduced. He stated that the final budget reflects a reduction in several areas; the rehabilitation/replacement of water main line capital improvement project expenses associated with the pressure system improvements (the project was phased over a two-year period), a reduction in contributions to CCRB for fish enhancement projects, and two full time equivalent positions were not funded. Mr. Dahlstrom stated he would provide a six-month review of the budget and reevaluate personnel funding at that time and asked that the Board reserve the decision for further employee reductions. He stated that the need for additional help might be necessary in the future should the budget forecast change.
He and the Board turned their attention to the budget for joint Fisheries activities conducted by the CCRB/ID No.1 partnership. Mr. Dahlstrom indicated that the District does not approve CCRB’s budget but the Board determines the amount of funding that ID No.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 $134,159. The Board members voiced their concerns regarding the CCRB budget and the need to have these projects approved prior to funding.
Mr. Dahlstrom stated he and Mary Martone spent a considerable amount of time on this budget and evaluated each category. However, he indicated that even though line item cuts were made, reserves will be required to fund certain capital projects in order to balance the budget. He stated that the revised final budget shows that the anticipated operating revenues are not sufficient to fund both other expenses special studies program for the Cachuma Project Continuing Operations/Fisheries Biological Opinion line items with the CCRB and all itemized capital improvement projects; thus creating a budgetary shortfall of $164,999 rather than $788,128 as in the Preliminary Budget.
Mr. Dahlstrom recommends his approval of the budget using $164,999 in reserves to fund capital projects and balance the budget.
c) Resolution No. 659: 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
After review and comment, it was MOVED by Trustee Loudon, seconded by Trustee Bettencourt, and carried by a 4-0-1-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
Harry Poor
NOES, Trustees: None
ABSENT, Trustees: Jeff Clay
3. Establish Regular Meeting Time
Mr. Dahlstrom stated that the Board meetings currently begin at 5:30 pm. Trustee Bettencourt requested that this item be discussed. Mr. Dahlstrom stated that he would like to address changing the time of the meeting to a later date, perhaps after AB 2686 is approved. He stated that the bill included a date and time specific of January 20th, 2009 at 5:30 p.m. and that he does not wish to change current protocol until after the bill has been approved. Trustee Bettencourt suggested six months of the winter starting at 5:30 p.m. and the summer months starting at 6:30 p.m. The Board members agreed to address this item next year.
4. Building & Security Improvements
a) Meadowlark Security Fence
Mr. Dahlstrom stated that he recently received a complaint regarding the Meadowlark facilities. He stated that the old fence was taken down by staff and the new fence, which installation that began last week, is near complete. He stated that Caldera Fence Company is on schedule and that the fence is a standard six-foot fence with inserted slats and barbed wire top. Shrubs will be planted to mask the fence on the Meadowlark Road side. He also stated that the location would eventually have building for additional storage of the generators and other equipment.
B. District Operations & Maintenance
1. 2005 Flood Emergency (FEMA-1577-DR-CA)
a) Upland Well #24 Construction Project (Tejas Canyon)
Mr. Dahlstrom stated that the transformer is in place, the electrical work has been completed, the shade structure has been installed and the electrical is awaiting PG&E inspection. He also mentioned that the pump & motor was ordered by Layne-Christensen. He stated that this well could be online within a month.
b) Upland Well #25 Drilling & Construction (Figueroa Mtn. Road)
Mr. Dahlstrom stated that the fence will be constructed next week and that PG&E will be out on July 7th for the installation of an electrical transformer.
c) Upland Well #27 Drilling & Construction Project (Hwy 154/Royal Oaks)
Mr. Dahlstrom reported that the chlorination unit is being installed by staff and when completed, the well can be activated.
d) Well #28 – Drilling & Construction Project
Mr. Dahlstrom stated that drilling work commenced on June 18th and that the pilot hole is at 670’ as of today. He stated that the contractor, Bakersfield well and pump, would drill to 1,000’. He stated that more information would be provided at the July meeting and passed around a sample of the materials from the pilot hole.
1. Grading Project at Mr. Davidson’s Property
Mr. Dahlstrom stated that the Board packet included a bid summary for the Well #28 grading project. He stated that there were four bids received and bid opening occurred on June 16, which he summarized for the Board. He stated that based on the bid process, Hanly General Engineering, Corp. is the lowest responsible bidder at $15,000 for the grading for Well #28.
It was MOVED by Trustee Bettencourt, seconded by Trustee Loudon and carried by a 4-0-1-voice vote to accept the bid, authorize the General Manager to sign the Notice of Award for Hanly General Engineering, Corp. and approve the contract for the grading project.
2. 2760 Lucca Avenue – Main Line Relocation
Mr. Dahlstrom stated that the mainline relocation work is complete and that the notice of completion was included in the packet. He stated that the field crew and Bob Hyland did a great job and he expressed his appreciation. He stated that the property owner was also pleased with the job. Mr. Dahlstrom stated that the old line must be abandoned and the release of liability documentation needs to be completed.
C. Water Service for/Lot Splits/Projects
1. Santa Ynez Indian Reservation
Mr. Dahlstrom welcomed the public that was here at tonight’s meeting to hear the report regarding the 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 this was continuation report relating to the mainline replacement project that began in early 2001 with the Tribal Hall and Medical Center. He stated that this Santa Cota 12-inch water main is an on-going water main replacement project beginning at the Edison Street water main and extending through to Via Juana for water service to the Hotel and Casino.
Mr. Dahlstrom stated that the Reach B portion of the project relates to Ortega to Cabrillo and is an 8-inch main, which replaces a 6-inch main on Wonanee. He further explained that the Board approved this project in January of 2007. Following the approval, there was a subsequent change in the alignment due to a sweat lodge detected in the original alignment in the plans. The plans have been resubmitted and reviewed in July of 2007. He stated staff submitted comments to the Band and that since that time; the District had received revised plans that included a Community Center. He stated that the plans have been reviewed and the additional services and fire flows have been modeled and based on those results, a 12-inch line is needed as opposed to the 8-inch line as originally discussed and approved.
He stated that the Band is disputing this requirement at this time, although he feels that an agreement will be made with the Band soon regarding this issue. The requirement for a 12-inch main is based on modeling results, better and more accurate science and the District’s recently adopted design criteria. He indicated that the main would be upsized to 12-inches in size to avoid excess fire flow velocity in the event of a structure fire such as the universal studios that reached flows up to 18,000 gallons per minute. He explained that the exception to the 12-inch upsizing could be the reach crossing the Highway 246. This would remain as the existing 8-inch until such time there are future increased water demands, projects on the reservation requiring additional water service or problems with the main caused by excess velocities.
Mr. Dahlstrom stated that Reach C, phase 2 of the Santa Cota Main replacement is essentially complete at this time with the one exception of the 6-inch water main line connected to Lateral 1-1 at the Pace property that needs to be removed and capped. There has been no response from the Band regarding this item.
Mr. Dahlstrom stated that the easements would be acquired upon completion of all the projects rather than on a piecemeal basis. He referred to past experiences and the extended period of time that the Bureau of Indian Affairs to process easements that can be as much as 9 months.
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.
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 that the storm drain is installed and near completion. He expects this project to be complete within the next month.
d) Third Amended Water Main Installation and Temporary Service Agreement – Expiration date July 1, 2008
Mr. Dahlstrom stated that the Third Amended Water Main Installation and Temporary Service agreement was due to expire on July 1, 2008. Mr. Dahlstrom stated that the Phase 2 project was not at a point of completion. He stated that based on the current status of the phased project it was up to the Board to consider a time extension and to amend the agreement a fourth time. The Board discussed the requirements of the current agreement and the time it would take to complete the phased project. The Board also discussed the easements relating to the project. At which time Mr. Dahlstrom stated that also included in the Board packet was a June 5, 2008 letter from Mr. Armenta requesting the release of certificate of deposits held by the District for the completed phases of the project.
The Board discussed the request and Mr. Dahlstrom stated that based on the completed phases of the projects he would recommend the release of the two items referenced in the letter in the amount of $226,056 be released back to the Band surety for the completed Tribal Hall/Medical Center main and Edison Main.
After a brief discussion it was MOVED by Trustee Bettencourt, seconded by Trustee Poor and carried by a 4-0-1 voice vote to authorize the General Manager to review and reimburse the Band for the surety amounts of $81,965.84 and $144,090.16 totaling $226,056.
The Board also discussed the remaining requested surety amount and asked Mr. Dahlstrom for his comments. Mr. Dahlstrom explained that a final review of the accounting has yet to be done and should be done prior to any further reimbursement of the surety balance. At this time it was requested by the Board to direct the General Manager to further review the surety value to provide and maintain the correct balance to complete phase 2 of the project and bring this back to the Board.
Mr. Dahlstrom then addressed a fourth amendment to the agreement. He suggested extending the agreement by another year expiring on July 1, 2009. The Board expressed their concerns about the time it takes to obtain the easements with the Band. The Board would like a provision included in the amended agreement to include that all easement requirements must be resolved and obtained, as well as abandoned prior to the completion of the project. The Board also concluded that the agreement should include the language stating that the temporary water service will continue until October 1, 2008 until the agreement is executed.
The motion was amended to include the following: It was MOVED by Trustee Poor seconded by Trustee Bettencourt and carried by a 4-0-1 voice vote to authorize the General Manager to review and reimburse the Band for the surety amounts of $81,965.84 and $144,090.16 totaling $226,056, and to include the provision that all easements must be resolved and obtained prior to the completion of the project and that the temporary service will continue until October 1, 2008; and amend the agreement a fourth time extending the deadline to July 1, 2009.
Mr. Dahlstrom stated that the agreement would be provided for review and action at the July meeting.
Mr. Dahlstrom provided answers to the public present for this item and thanked them for attending the meeting.
e) Lateral 1-1 Easement
Mr. Dahlstrom stated that it has been brought to his attention that the Lateral 1-1 easement which was originally obtained in 1960 is due to expire soon. He stated that a historical review has been performed and that a resolution #114 was prepared and approved by the Parent District in 1960 authorizing the application for certain easements upon Indian Lands and directing the execution of documents and contracts therefore. He stated that the resolution did not include the easement documentation and requested a copy of the said information from Mr. Sam Cohen, legal counsel for the Band. He stated that once a review of this document a recommendation would be brought back to the Board for further review and action.
2. Santa Ynez Community Services District
a) Main Line Extension – 1070 Faraday
Mr. Dahlstrom stated that the Notice of Completion for the SYCSD mainline extension was filed and was included in the packet for reference. He stated that the service must still be installed once the SYCSD determines the location. He stated that the dedication and acceptance of the facilities would be presented at the July meeting.
b) Proposed Ordinance for Faraday Connection Fees
Mr. Dahlstrom stated that the Board packet included a Santa Ynez Valley News legal notice discussing Ordinance No. 0-08-01 which adopts Special Connection Fees for Faraday Sewer Main Line Extension. He stated that the District’s APN is listed, with a proportionate share of $7,372.89. He further explained that the District has not been billed for the proportionate share and that we would have no reason to need a connection to that said line. Mr. Kvistad, the Dstrict’s legal counsel advised the Board that nothing needs to be done regarding the notice. He stated that this report was for informational purposes only.
3. Dunn School – 2555 W. Highway 154, Los Olivos
Mr. Dahlstrom stated that Phase 1 - Reach A tied into Roblar main and is complete ready for pressure testing and disinfection. Reach B & C are being installed with a video of the central line complete and the line is acceptable. He mentioned that a backflow device is required, but not yet installed. He stated that Phase 2 plans were submitted this week. He will provide a status report at the July meeting.
4. Coffin Water Main Line Extension – Parcel Map 14,598
Mr. Dahlstrom stated that the Board packet included a recent email from the Coffin family. He stated that the surety confirmation was received today and that according to Mrs. Coffin the property is in escrow. He stated that the prospective buyer has agreed to purchase the property without water service and also noted that Mrs. Coffin has requested the project be put on hold for now, not cancelled.
Mr. Dahlstrom stated that an executed Amendment to the Water Main Line Extension Agreement was signed by Mr. & Mrs. Coffin, as well as the Main Line Agreement. 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 stated that the project could proceed although, with the property in escrow and the request for the project to be put on hold, he advised the Board that the district could proceed and utilize the surety to complete the main.
The Board briefly discussed the main line extension requirements and directed the General Manager to further review the agreement and amendment prior to any work commencing and provide a status report to the board at the July meeting.
5. McComb Water Main Line Extension – APN 139-040-038 -2245 Coyote Creek
Mr. Dahlstrom reported that project is complete at this time. He stated that Tierra Contracting installed this mainline extension in three days; he stated that the line was pressure tested today (June 19, 2008) and that it passed. He stated that the Notice of Completion would be filed. He stated that the dedication and acceptance would be provided for the July meeting.
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 May 19, 2008 CCRB agenda. He stated that a report was provided at the May 20, 2008 meeting.
2. Fish Enhancement Projects
Mr. Dahlstrom stated that the Board packet included current correspondence with Ms. Rees relating to the Fish Enhancement projects. He stated that the Board directed him to inquire about the proposed fish enhancement projects that were outside the scope of the Biological Opinion. He stated that according to the supporting documentation that he received from Ms. Rees, there seems to be conflicting information submitted to our Board. He provided an example of a project scheduled for San Julian Creek. He stated that the cost associated with the project originally was presented at $171,400 and was supposed to have been reimbursed by grants. Then the project cost increased to $300,000 according to CCRB and now this project has been estimated at over $400,000 with grant money only covering the original amount. He further explained that COMB issued a purchase order, signed by Tim Robinson, in the amount of $300,923 (not to exceed) with an expected completion date of June 30, 2008 as well as one sole source price quote from CA Larson Company. He stated that this project was not presented to the CCRB or COMB and was not approved by ID#1’s Board. He also mentioned that this project is not required in the Biological Opinion and does not meet the criteria. He stated that this is only one example of the CCRB financial confusion.
He then presented another example, he stated that the Quiota Creek Fish Passage Improvements project was submitted and agreed upon without ID#1’s approval, although agreements have been executed and signed by Tim Robinson and landowners for the project. He explained the costs associated with the project are at $577,000. Again, ID No. 1 was not included in the agreement process that we are legally bound by. Mr. Dahlstrom stated that these agreements were signed without our knowledge and complete as of May 8, 2008. He stated that Mr. Tim Robinson is not an authorized signatory for CCRB or ID#1.
The Board members expressed their concern over the lack of respect for this district that Ms. Rees has shown and concluded that CCRB should be held accountable for their actions. The Board directed the General Manager to write a letter to Ms. Rees regarding Mr. Robinson’s action approving a said project with out ID No. 1’s authorization/approval of the project and an immediate call for Ms. Rees’s resignation.
After further discussion, the Board requested that legal counsel send a letter to the landowners who signed the agreement for the Quiota Creek project, and to Ms. Rees that ID No.1 did not approve this project and that the project must be resubmitted correctly including ID No. 1. The Board expressed their appreciation to Mr. Dahlstrom for his attention detail regarding CCRB’s budget and quarterly assessments.
Mr. Dahlstrom stated that more information would be provided as it becomes available.
3. FY 2008/2009 Budget
He stated that the CCRB FY08/09 budget was presented by Ms Rees and was approved at the May 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 and other adjustments.
4. Joint Agency Restructuring
Mr. Dahlstrom stated that once again we would be addressing a restructuring of the agencies relating to CCRB and COMB. He stated that there was a meeting scheduled on May 25, 2008; which was subsequently cancelled because Ms. Abel could not attend. He stated that a new date has not been arranged yet. He stated it would likely be rescheduled in the month of July.
B. Cachuma Operations and Maintenance Board
1. Report on Board Meeting
Mr. Dahlstrom stated that Board packet included the May 19, 2008 COMB Meeting agenda. He stated that a report was provided at the May meeting.
Mr. Dahlstrom stated that the Board packet included a May 27, 2008 letter to Ms Rees relating to the renewal fund trust fund for FY2009 and a response dated May 29, 2008 from Ms. Rees, which was very derogatory and unnecessary. After reading the response, the Board stated her lack of respect for this District, the Board members and Mr. Dahlstrom is very apparent and change must be mad
