REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE MID-PENINSULA WATER DISTRICT
October 23, 2008
Belmont, California
CALL TO ORDER: The Board of Directors’ meeting of the Mid-Peninsula Water District was called to order by President Zucca at 6:30 p.m.
A. ROLL CALL:
PRESENT: Directors Altscher, Feldman, Linvill, Vella and Zucca.
ALSO PRESENT: General Manager Regan, General Counsel Schutte, Secretary Remeleh, and Engineer O’Flaherty
STAFF PRESENT: Rick Bisio
MEMBERS OF PUBLIC:
Joubin Pakpour, Pakpour Consulting
PRESIDENT: President Zucca presiding.
Whereupon the following proceedings were duly had:
B. PLEDGE OF ALLEGIANCE:
Director Altscher led in the Pledge of Allegiance.
C. APPROVAL OF MINUTES:
The minutes of the Regular Board meeting of September 25, 2008 were unanimously approved on a motion by Director Vella and seconded by Director Altscher.
D. PUBLIC COMMENTS:
None
E. WATER CONSERVATION:
Secretary Remeleh opened this discussion. She stated the District has received the water conservation banner and the schedule for the City of Belmont. The banner will be hung west of El Camino on Ralston in April, July and September. She reported the Mid-Peninsula Water District Water Line Newsletter should be in all customers’ homes by the end of the week. Also reported on was the District 2nd Annual Poster/Calendar Contest. Secretary Remeleh stated the poster from the children in Grades 3 – 5 are due in the office by October 31st. Then the process will start to judge and pick the winners. She stated staff is very excited too see what the children have come up with this year on water conservation.
Director Linvill shared with the Board a newsletter she had received from a Water Supplier in Southern California. Director Vella stated he though it would be a good idea to send more reminders to the schools as there are many activities happening in October. Director Altscher stated he had talked to George Metropulos, a teacher in Belmont and former Mayor of Belmont about school programs. They discussed that now is the time to get into the schools and not wait as the holidays are approaching and then after the first of the year when the focus is on Spring. Secretary Remeleh stated she had a call into Mr. Metropulos to have a meeting with him to brainstorm over ideas for the schools. Director Linvill stated she liked the idea of getting the teachers involved with conservation and maybe expand the program to include some field trips to the District. Secretary Remeleh reported that staff attended a meeting at the City of Belmont on the Belmont Housing Element. Staff spoke with a committee member on the importance that new construction to incorporate water conservation in the planning stages of the projects and the importance of backflow prevention to keep our system safe. She also stated the Board would be receiving a more detailed conservation plan at the Board meeting in November. Secretary Remeleh reported that staff was in the process of researching water conservation challenges and designing a program that would fit the needs of the District and encourage water conservation in the community.
F. DIRECTORS’ REPORTS:
Director Altscher reported he attended the Harbor Industrial Association (HIA) meeting on October 2, 2008 where President Zucca addressed the HIA on the Hetch Hetchy Project and how this will impact the District customers. Director Altscher stated President Zucca did a great job with his presentation. He also stated Howard Jones had complimented the District and President Zucca on the presentation.
Director Vella reported on the progress report he had received from Bay Area Water Supply and Conservation Agency (BAWSCA) on the contract negotiations between the BAWSCA members and the San Francisco Public Utilities Commission (SFPUC). He stated the projected date for completion of the agreement is June 30, 2009. He stated there has been some success on issues by the BAWSCA members. He also reported the next quarterly report would be in January 2009. The General Manager stated he is in attendance at these meetings and offered to send the Board members the last 6 quarterly progress reports for their review.
President Zucca reported on his presentation at the HIA meeting. He stated that he explained to them about the reasons for the rate increase as it is directly related to the SFPUC’s CIP on the Hetch Hetchy system. He also explained that if the Hetch Hetchy system were to go down due to problems with the aging system the customers served by the system could be without water for up to 60 days. The 4.3 billion dollar project to repair the aging system is intended to achieve a 24 hour response time. He explained the projects to be undertaken and the components to the projects including the costs. He told the HIA that wholesale rates are projected to go up 25% per year for 5 years according to the SFPUC.
G. MANAGER’S REPORT:
General Manager Regan reported that the Exbourne Tank Project is almost complete. The contractor has recently completed the painting of the inside of the tank. He stated there had been a customer who complained about the noise of the humidifier that helped in the drying process. The District bought some hay bales to build a sound wall between the humidifier and the home and also encased the humidifier in a temporary wooded insulated structure. This seemed to take care of the noise problem. Manager Regan also reported on the Lyndhurst mainline project. He stated this project is complete with the exception of the paving and this will assist in the next phase of the Exbourne Project. Manager Regan reported on the District leak survey. The project is 90% complete and the contractor has found only 1 leak on our system. President Zucca inquired as to our unaccounted for water and Manager Regan told him it was approximately 5%. He told the Board about a hydrant hit and run on Chula Vista. Manager Regan reported on the Maywood mainline project. He explained to the Board there have been multiple breaks on this section of pipe and the District will be replacing this main in November. Director Altscher inquired as to the title changes for staff member he has noticed. Secretary Remeleh explained some titles had changed when the job descriptions were updated. Director Vella inquired on why 6” pipe was being used on Lyndhurst as opposed to the normal 8” pipeline the District has been installing. Manager Regan explained due to possible water quality issues the small pipe was used to ensure water flowed at the proper rate through the system. The General Manager reported on the new employees hired to replace the 2 open positions at the District. He stated the staff utilized the new recruitment plan in the hiring process. The General Manager reported the Board had received the performance metrix for the quarter and it looks good. The General Manager stated 2 staff members and himself had attended the EOC training exercise at the City of Belmont. Since there was not enough time to go over the exercise with Jack Crist, the City Manager, he was going to call him tomorrow to give ideas on how the District could be better utilized in an emergency situation. On motion by Director Altscher and seconded by Vice President Feldman the Manager’s Report was unanimously approved.
H. FINANCIAL REPORT:
The Secretary opened this discussion by reminding the Directors she had been directed to research opening a separate account for the Other Post Employment Benefits (OPEB) funds currently being held in the Districts LAIF account. She stated LAIF does not permit agencies to hold more than one account. She handed out information on CD’s she had checked into at the recommendation of the District Treasurer. Vice President Feldman expressed his concerns about the security of the District reserve funds due to the current financial crisis in the country. He stated that maybe a better option for the District funds are Treasury Notes. Director Linvill agreed she had concerns about the LAIF account and would like the Treasurer to make his recommendations at a future meeting. After a lengthy discussion, the Board directed staff to contact the District’s Treasurer and have him investigate the best options for the District’s reserve funds. The District Secretary will be contacting the Board with possible meeting dates for a Special Board meeting. Director Linvill stated she had some concerns that she discussed with Treasurer Ira; one being some of the verbiage in our financial statements and the tracking of job costs. She also had some discussions with Maze and Associates on the Audit, when it might be complete, tracking of the projects and recommendations. President Zucca stated he had received a package from Maze and Associates that he would be handing out to the Board and going over with Director Linvill. General Manager Regan pointed out to the Board that the Capital Expense Report had changed to reflect the removal of the replacement of the old Exbourne Tank which will not be done this fiscal year and has been replaced by engineering fees for the design of the 3 components left on the Exbourne Project. The remainder of the budgeted funds will be placed in the District’s reserves until next fiscal year when it is time to start one or two of the three remaining projects. Director Linvill questioned the negative year to date expenditure for vehicles. Manager Regan explained this was for the sale of the truck that was replaced. On motion by Vice President Feldman, seconded by Director Vella the Financial Report was unanimously approved.
I. FUTURE NEW BUSINESS ITEMS-SUGGESTIONS BY THE BOARD MEMBERS:
One item for the future will be the Special meeting where the District financial reports and recommendations for the District investments be discussed.
J. COMMUNICATIONS:
Manger Regan pointed out to the Board they had received the report from State Compensation Fund on their annual review of the District safety program and the bookkeeping. As stated in the report the District is doing well. They did have some recommendations that staff has asked for more information on.
President Zucca informed the Board he had received a thank you letter from Howard Jones, HIA Program Director, thanking him for his presentation.
K. CLOSED SESSION:
At the direction of President Zucca, the Board and General Counsel recessed at 8:57 to convene in a closed session with respect to the specified item on the agenda:
PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Closed session pursuant to Government Code 54957
Title: General Manager
The Board reconvened in open session at 9:11. The General Counsel reported that no formal action was taken in closed session.
K. ADJOURNMENT:
President Zucca adjourned the meeting at 9:12 p.m. The next regular meeting of the MPWD Board is scheduled for Wednesday November 19, 2008 at 6:30 p.m. in the District’s administrative offices at 3 Dairy Lane, Belmont CA 94002.
