CALL TO ORDER: The Board of Directors’ meeting of the Mid-Peninsula Water District was called to order by President Vella at 6:30 p.m.
A. ROLL CALL:
PRESENT: Directors Altscher, Linvill, Stuebing, Vella, and Zucca
ALSO PRESENT: General Manager Regan, General Counsel Cassman, Secretary Remeleh, and Engineer O’Flaherty.
STAFF PRESENT: Stan Olsen, Henry Young, Ron Leithner, Jeanette Kalabolas, Rick Bisio, Mike Anderson, Jon Tscharner and Sara Abou-Remeleh.
MEMBERS OF PUBLIC:
Victor Fung and Joubin Pakpour from Pakpour Consulting, Tim Krisch from Maze and Associates.
PRESIDENT: President Vella presiding.
Whereupon the following proceedings were duly had:
B. PLEDGE OF ALLEGIANCE:
Vice President Linvill led in the Pledge of Allegiance.
C. APPROVAL OF MINUTES:
The minutes of the Regular Board Meeting of December 17, 2009 were unanimously approved as corrected on a motion by Director Altscher and seconded by Director Stuebing.
D. PUBLIC COMMENTS:
None.
E. AUDITORS REPORT ON FINANCIAL STATEMENT FOR FISCAL YEAR 2008-2009 :
Tim Krisch from Maze and Associates gave a report reviewing MPWD financial statements for fiscal year 2008-2009. He stated the District is in very solid financial health.
Director Altscher asked staff what the procedure was for handling of the cash payments in the office. He also asked is there is any concern about 4 people in the office operating the cash register. Secretary Remeleh explained that there are 4 different people who handle the cash drawer, but there is a procedure put in place to be sure that there are no discrepancies with the cash drawer.
Vice President Linvill explained that she works with financials and she has seen an increased concern about internal fraud. She asked Tim to give an explanation of the investigation that is done for fraud control.
He explained that there is a questionnaire sent out to a few Board members and key members of the staff each year. He also explained that there is an internal control testing of the receipts, disbursements and payroll.
Director Linvill just wanted to be sure that specific procedures are put in place to protect the employees of the District from being accused of internal fraud.
Director Zucca asked Tim to elaborate on the memorandum on the internal control issue.
Tim explained that in closing the books each and every year and going through the audit process with management, Maze and Associates proposes when adjusting entries are to be made the outside accountants should record these entries and it was not done. It is not an earth shattering mistake, but it is an issue that should be resolved in the future.
President Vella asked how familiar the firm becomes with the accounting during the auditing process to be comfortable with the final report that is given out.
He explained that they become very comfortable not only for the District’s benefit, but also for the firm’s benefit and security.
The Board and staff were also concerned with the timing of this report.
Tim apologized and explained that the firm will try to have this report done in a timely manner.
On motion by Vice President Linvill seconded by Director Altscher, the Board unanimously approved the auditor’s report on financial statement for fiscal year 2008-2009.
F. BELMONT COUNTY WATER DISTRICT EMPLOYEE ASSOCIATIONS REPORT:
Stan Olsen introduced the new Belmont Water District Employee Association governing officers. Michael Anderson is the new association President, Jeanette Kalabolas Vice President, Rick Bisio is Treasurer and Misty Malczon is continuing as Secretary.
Mike Anderson introduced himself and explained that he has been with the District for 11 years and has held several different positions. His current position is field foreman where he works closely with the staff out in the field and maintaining the system. He thanked Stan for taking over the Association temporarily. He explained that the Association has recently evolved and that employee morale as well as communication with management and Board are subject that are very important to the employees. He explained that he greatly appreciates being at the District and representing the employees and the employees appreciate being able to work with the Board. They look forward to the Board/Employee meetings. He also reported that he and Jeanette met with President Vella for an informal “meet and greet” meeting. It was a very informative meeting and he thanked President Vella for his time. Currently the Association is reviewing the bylaws and is hoping to improve the bylaws in the future. The Association is also looking forward to working with the Board and Management on the 2010 goals. He also stated that negotiations are coming up between the Association and the Board. He again expressed the Associations gratitude for the Board allowing them to have a job and treating the employees so well.
President Vella thanked Mike as well as Stan for their leadership in the Association. He was also pleased to hear that the employees are interested in the 2010 goals for the District.
G. EXBOURNE TANK PROJECT:
Joubin Pakpour gave the 6th report on the Exbourne Tank Project. The new tank has been erected and there have been x-ray tests taken of the welds on the tank. As of Monday the contractors will start demobilizing the construction equipment for putting the tank together. The contractor will then be sand blasting and cleaning in preparation for the painting of the tank, which is a 5 month process. In the past month Pakpour Consulting has also been working with the contractor to pressure test the water main that runs from Exbourne Tank to the Buckland Tank in anticipation for paving next week. There was a leak in the main which the contractor located and repaired it. The project is 46 days behind schedule, 7 of those were due to rain and the rest was for mis-estimate of the time it took to get the tank built. The next step will be the building of the pump station. He also presented progress payment No. 6 for $289,321.00 with a detailed spreadsheet.
President Vella asked if the main was tested at 200psi.
Joubin explained that 200psi is what the main was tested at.
Vice President Linvill asked if the job completion matched the 66% of the payment that has already been made.
Joubin explained that the job has 66% of the material constructed so it does match.
Director Stuebing asked if the sand blasting would be a nuisance to the neighboring customers.
Joubin explained that the sand blasting would last 4 to 5 days. He also explained the noise wasn’t what is concerning him as much as the dust that will come from the sand blasting that may be the biggest annoyance. A heavier sand blaster will be used on this project that will help keep dust levels down. He also mentioned that there have been no comments about the project.
Director Altscher asked if customers have been notified about things such as the color of the tank. He also believes that the neighbors of the site should be given something such as a letter to express our gratitude for their patience during the project.
Joubin explained that if a customer approaches the site and asks questions, their questions are answered. The neighbors are familiar with Victor and have his number for questions or concerns about the project. He also presented the Board with pictures of the site.
H. 101 IRRIGATION SERVICE REQUEST (RECLAIMED WATER):
Manager Regan recommended allowing Redwood City to use our service territory to serve CalTrans with the reclaimed water that is needed to irrigate the new landscaping that will be planted. This would keep the project moving forward. He also is recommending to send a formal response to Redwood City stating that MPWD is allowing them to use the District’s territory with certain stipulations. After collecting all of the concerns the Directors may have he will prepare an agreement to be brought back to the Board with all stipulations included to be sent to Redwood City.
Director Zucca asked if there were any limitations that LAFCo may have on this project.
General Counsel Cassman explained that it does not look like the San Mateo County LAFCo will have an issue with this project moving forward.
Vice President Linvill commented that she would like to see a set date for this special service from Redwood City to cease.
Manager Regan explained that this will be one of the stipulations sent in response. Once the landscaping is established Redwood City would no longer serve this territory as stated in the presentation at the previous meeting.
Vice President Linville also would like to be ensured that if there is any liability regarding the misuse of the non-potable water, the District would not be responsible in any way.
General Counsel stated that there should be an agreement to go along with this project to address these issues.
Manager Regan explained that staff will create a response and an agreement to be presented at the Board.
President Vella does not want to see the District become a hurdle to the project. He would like to see Redwood City and CalTrans be able to move forward with the project.
Director Stuebing stated that he is sure the Redwood City is not looking to take over the District’s but he would like to be sure that the District is protected before entering into this project.
The Directors also wanted to make it clear that this is an accommodation by the District to allow Redwood City to use our service territory.
On a motion by Director Stuebing seconded by Director Zucca, the Board unanimously approved directing staff to prepare an agreement that will include all of the specified terms and conditions between the District and Redwood City regarding the 101 interchange service request for final review and approval.
I. BAWSCA INDOOR AND OUTDOOR WATER CONSERVATION ORDINANCE:
General Counsel Cassman gave an overview to the Board for the model Indoor and Outdoor Water Conservation Ordinance supplied by BAWSCA.
The Directors discussed in length the process of adopting these new ordinances. There were concerns about being able to enforce parts of these ordinances and coordinating with the City of Belmont, if they were interested in adopting the same ordinances, so that both they and the District are on the same page. Conflicts between the ordinance of the City and the District will present additional challenges. The Board recommended that a letter be written to the City informing them that these are the ordinances that the District will be adopting.
The Board directed staff to compose the formal ordinances and present them at the next Board meeting for consideration and see that all preliminary steps have been taken to notify the customers.
J. WATER CONSERVATION:
Secretary Remeleh reported that the District will be hosting another field trip for 40 third graders from Fox School and another is set up for April.
K. ACWA REGION 5 MEETING:
Director Altscher reported that there will be a meeting hosted by ACWA in Concord. This is a Region 5 and Region 1 meeting that is referred to as the California Legislative Water Package Regional Implementation Workshops. Discussions will take place on the Legislative Water Package. He feels that the Board and Staff alike will benefit from attending this meeting.
President Vella could not stress enough the importance of the Directors and Staff educating themselves whenever possible.
Vice President Linvill has already registered to attend.
On a motion by Director Altscher seconded by Director Zucca, it was unanimously approved that Directors and staff are authorized to attend the ACWA Region 5 Meeting in Concord.
L. CERTIFYING MPWD AS A GREEN BUSINESS:
Secretary Remeleh reported that MPWD has been certified as a green business and on February 9th the District will be recognized at the San Mateo County Board of Supervisors meeting and will be presented with a certificate.
Director Altscher thanked staff for working so hard to certify the District as a green business.
M. 2010 GOALS AND OBJECTIVES:
Secretary Remeleh presented the Board with the proposed 2010 Goals and Objectives.
President Vella encouraged the employees to be a part of achieving the District’s goals and objectives.
On a motion by Vice President Linvill seconded by Director Altscher, the Board unanimously
approved the 2010 Goals and Objectives and holding a meeting held with the District employees to discuss them.
N. REJECTION OF CLAIM FILED BY TRISTAR RISK MANAGEMENT FOR THE CITY OF BELMONT:
Staff recommended that the Board reject the claim in accordance with the Tort Claims statority procedures.
On a motion by Director Zucca seconded by Vice President Linvill the Board unanimously approved the rejection of the claim filed by Tristar Risk Management for the City of Belmont.
O. BAWSCA REPORT:
President Vella reported that most of the BAWSCA meeting was discussion about conservation including the Indoor and Outdoor Water Conservation Ordinances. Also there was the annual election of the Chair and Vice Chair as well the BAWSCA financial authority. A concern was expressed about high usage at trailer parks. He also reported that there was a very nice presentation to Ray McDevitt for his services to BAWSCA.
P. DIRECTORS’ REPORT:
Director Altscher reported that he received a phone call from retiring City Manager Jack Christ and he commented that Director Zucca made a wonderful presentation to the City on the Capital Improvement Project being done by the SFPUC and they would like to have him back to give an update in 6 months.
Vice President Linvill reported that she attended the City Council Meeting.
Director Zucca gave a presentation on the Capital Improvement Project at the City Council meeting and he would be more than happy to return in 6 months.
Vice President Linvill suggested that Director Zucca give his presentation to the Chamber of Commerce.
Engineer O’Flaherty suggested he also give it at the progress seminar in Monterey.
Director Zucca agreed that presenting to the Chamber of Commerce would be a good idea.
Director Stuebing also commended Director Zucca on his presentation and also commended staff on the newsletter.
President Vella also attended the City Council meeting and stated that Director Zucca did a very good job. He also reported that he had a meeting with the District’s Employee Association President and Vice President and he looks forward to working with them. He and Manager Regan also met with a reporter from the newspaper regarding SFPUC’s rate increase.
Q. MANAGER’S REPORT:
Manager Regan reported that with the rains the District employees have been performing general maintenance on the system. He hopes that next week pipeline replacement will begin in front of Fox School. He also presented the Board with the Performance Metrics and noted the District is still doing well.
President Vella inquired about large meter testing and meter maintenance.
Manager Regan elaborated on these 2 subjects.
President Vella was also pleased to hear about the excavation and traffic control classes that the District employees attended.
On a motion by Director Zucca seconded by Vice President Linvill, the Board unanimously approved the Manager’s Report.
R. FINANCIAL REPORT:
Manager Regan explained that District Treasurer Ira will be attending the March Board Meeting and will be attending once a quarter. He also explained that the budget is on track.
On a motion by Director Altscher and seconded by Director Stuebing, the Board unanimously approved the Financial Report.
S. FUTURE NEW BUSINESS ITEMS-SUGGESTIONS BY THE BOARD MEMBERS:
Directors’ requested the following items for the upcoming Board meetings: future LAFCo commissioner opening, meter reading schedule, General Manager quarterly meetings in closed session starting in March, human resource audit, Board/Staff meeting, presentation to Chamber of Commerce.
T. COMMUNICATIONS:
There was a request from the Daily Post to receive all payroll information for every District employee by name for the past 3 years.
U. ADJOURNMENT:
President Vella adjourned the meeting at 9.37 p.m. The next regular meeting of the MPWD Board is scheduled for Thursday, February 25, 2010, at 6:30 p.m. in the District’s administrative offices at 3 Dairy Lane, Belmont CA 94002.
