CONSENT AGENDA: The Consent Agenda report was provided in the Board packet.

Transcription

1 SANTA YNEZ RIVER WATER CONSERVATION DISTRICT IMPROVEMENT DISTRICT NO. 1 NOVEMBER 14, 2017 SPECIAL MEETING MINUTES A Special Meeting of the Board of Trustees of the Santa Ynez River Water Conservation District, Improvement District No. 1, was held at 3:00 p.m. on Tuesday, November 14, 2017 in the Conference Room at 1070 Faraday Street, Santa Ynez. Trustees Present: Kevin Walsh Harlan Burchardi Brad Joos Jeff Clay Trustees Absent: Michael Burchardi Others Present: Chris Dahlstrom Paeter Garcia Mary Martone Karen King Danna McGrew Eric Tambini Fred Kovol Penny Knowles I. CALL TO ORDER AND ROLL CALL: President Walsh called the meeting to order at 3:00 pm., he stated this was a Special Meeting of the Board of Trustees. Ms. Martone reported four members of the Board were present and Trustee Michael Burchardi was absent. II. III. PLEDGE OF ALLEGIANCE: President Walsh led the Pledge of Allegiance. REPORT BY THE SECRETARY TO THE BOARD REGARDING COMPLIANCE WITH THE REQUIREMENTS FOR POSTING OF THE AGENDA: Mrs. Martone presented the affidavit of posting of the agenda, along with a true copy of the agenda for this meeting. She reported that the agenda was posted in accordance with the California Government Code commencing at Section and also pursuant to Resolution No. 340 of the District. The affidavit is filed as evidence of the posting of the agenda items contained therein. IV. CONSIDERATION OF THE MINUTES OF THE SPECIAL MEETING OF OCTOBER 24, 2017: The Minutes of the October 24, 2017 Special Meeting were presented for consideration. President Walsh asked if there were any changes or additions to the Special minutes of October 24, There were no changes or additions to the minutes. It was MOVED by Trustee H. Burchardi, seconded by Trustee Clay and carried by a unanimous voice vote, with Trustee M. Burchardi absent, to approve the October 24, 2017 Special minutes as presented. V. ADDITIONS OR CORRECTIONS, IF ANY, TO THE AGENDA: There were no additions or corrections. VI. VII. PUBLIC COMMENT: There was no public comment. CONSENT AGENDA: The Consent Agenda report was provided in the Board packet. Trustee Clay MOVED to approve the Consent Agenda as presented, the motion was seconded by Trustee H. Burchardi and carried by a unanimous voice vote, with Trustee M. Burchardi absent. November 14, 2017 Special Meeting Minutes Page 1 of 6

2 VIII. MANAGER S REPORT - STATUS, DISCUSSION AND POSSIBLE BOARD ACTION ON THE FOLLOWING SUBJECTS: A. DISTRICT ADMINISTRATION: 1. Financial Report on Administrative Matters a) Presentation of Monthly Financial Statements Revenues and Expenses The Board was provided the Statement of Revenues and Expenses for the month of October in the handout materials. IX. Mr. Dahlstrom reviewed the Statement of Revenues and Expenses for the month of October. He reported the revenues exceeded the expenses by $222, for the month and the year-to-date net income was $1,200, Mr. Dahlstrom highlighted the quarterly interest installment received from the Local Agency Investment Fund (LAIF) and unanticipated revenues generated from unauthorized Fire Service use during the month by three District customers. He explained that to the unauthorized use occurred on private fire services that are only to be utilized for fire suppression. He reported that each customer received a warning letter and billing for the unauthorized use in accordance with the adopted Rules and Regulations. Mr. Dahlstrom also mentioned that the District has not been invoiced from the USBR for the current year Cachuma Water Entitlement which began in October, which results in lower expenses for the month. Mr. Dahlstrom indicated that management will be transferring funds to the Board-approved Debt Service Reserve to earmark funds for the annual State Water and COMB Bond payments. b) Draft FY June 30, 2017 and 2016 Financial Statements - presented by Bartlett, Pringle & Wolf, LLP The Board packet included the Draft Fiscal Year June 30, 2017 and 2016 Financial Statements Prepared by Bartlett, Pringle & Wolf. This item was taken out of agenda order. Mr. Dahlstrom introduced Ms. Danna McGrew from Bartlett, Pringle & Wolf, LLP for presentation of the District s 2017/2016 draft Financial Statements. Ms. Danna McGrew provided a power point presentation of the June 30, 2017 and 2016 Financial Statements. She reviewed the District s current assets, liabilities and fund equity, statement of revenues, statement of changes, statement of cash flows and notes to financial statements. Ms. McGrew reported that the District s financials conform to required Generally Accepted Accounting Principles (GAAP) and the State Controller s Minimum Audit Requirements for California Special Districts. She explained that the District s audit resulted in no disagreements with Management relating to the financials and no reportable findings or exceptions. Mr. Fred Kovol provided comments to the Board. The Board thanked Ms. Danna McGrew for her presentation. Mr. Dahlstrom recommended approval the draft financials as presented and authorization for Management to post and submit the Financials to the State Controller and Santa Barbara County. Ms. McGrew stated once approved it will be finalized and executed and a Management representation letter will also be included. It was MOVED by Trustee Clay, seconded by Trustee Walsh and carried by a voice vote, with Trustee M. Burchardi absent, to approve and accept the June 30, 2017 and 2016 Financial Statements as presented by Bartlett, Pringle & Wolf, LLP and authorize Management to execute the final document and distribute it to the appropriate governmental agencies. REPORT, DISCUSSION AND POSSIBLE BOARD ACTION ON THE FOLLOWING SUBJECTS: November 14, 2017 Special Meeting Minutes Page 2 of 6

3 A. Cachuma Project U.S. Bureau of Reclamation Continuing Operations 1. Cachuma Project Water Service Contract No. I75r-1802R, Water Deliveries, Exchange Agreement, Entitlement, Water Storage, Accounting, Water Supply Projections and ESA Fisheries The Board packet included a November 14, 2017 Staff Report regarding the Cachuma Project. Mr. Dahlstrom reported on the Cachuma Project activities. He reported that he and Mr. Paeter Garcia, District Legal Counsel, met last month with the USBR Representatives to discuss the unaccounted for water deliveries to the South Coast. He stated there has been no formal response from the Bureau of Reclamation at this time and the issue remains unresolved. He indicated that the USBR representatives have decided that any unaccounted for water would be absorbed by the Lake. Mr. Dahlstrom reported that on September 18, 2017 the Bureau implemented a modified proposed formula regarding the Lake Storage and they indicated that barring any new information not previously considered, the USBR will ask COMB to incorporate the modified formula into their accounting practices. Mr. Dahlstrom reiterated this modified formula continues to impact ID No.1 and is not equitable. He stated Mr. Paeter Garcia, is scheduled to meet with the US Bureau of Reclamation s Regional Director and Assistant Regional Director in December to discuss this issue as well as the 2020 Contract. Mr. Dahlstrom reported that the new Cachuma Project Water Year allocation began on October 1 st. He stated that on November 1, 2017 the USBR officially announced there will be a 40% allocation issued to the Cachuma Member Units beginning retroactively on October 1, 2017; a mid-year allocation adjustment is reserved based on upcoming rainfall season and runoff conditions. Mr. Dahlstrom provided an update on the correct storage level of the Lake. He reported there was a presumed discrepancy (2,775 AF) last month by the USBR survey crew. He indicated that the Santa Barbara County Water Agency prepared a report that certified that the Lake elevations were previously accurate based on other survey results and determined there was no discrepancy on the Lake elevation. Mr. Dahlstrom discussed the Whitter Fire siltation impacts to Lake storage. He explained a coordinated meeting was held to discuss actions, activities and preparedness methods to be used to contain siltation runoff and debris flows into Cachuma and the areas adjacent to the fire. The meeting was held at Santa Barbara County with all Federal, State and local agencies attending to discuss the coordination and end results. Mr. Dahlstrom stated that all of tributary and drainage into the lake is up to the property owners and there will be no preventative measures performed by Caltrans. Mr. Dahlstrom reported the evaporation component remains an issue for the South Coast for both State water imported into the Cachuma Project under the Warren Act, and Cachuma Water supplies. The South Coast Member Units want no evaporative charges applied to their allocations or SWP water stored beyond the 30-day allowable period. Mr. Dahlstrom reported there was no new information on the 2020 Water Service contract process or the Transfer of the O &M of Cachuma Transferred Project Works Contract. B. Central Coast Water Authority 1. Assignment of State Water Contract from Santa Barbara County Water Agency to CCWA November 14, 2017 Special Meeting Minutes Page 3 of 6

4 Mr. Dahlstrom reported that all CCWA State Water Project contracting agencies have approved the assignment of the State Water Contract from the Santa Barbara County Water Agency by respective resolutions. He indicated that on October 26, 2017 the CCWA Board of Directors also authorized staff to move forward with the assignment of the Contract from the Santa Barbara County Water Agency to CCWA. Mr. Dahlstrom explained that the next step will be for CCWA to obtain a credit report from Standard & Poor s to assure the Department of Water Resources (DWR) requirements. Upon submittal of the credit report, DWR will approve the assignment and send it back to the Santa Barbara County Water Agency and Board of Supervisors for final execution. He reported the assignment should be complete by January X. REPORTS BY THE BOARD MEMBERS OR STAFF, QUESTIONS OF STAFF, STATUS REPORTS, ANNOUNCEMENTS, COMMITTEE REPORTS, OBSERVATIONS AND OTHER MATTERS AND/OR COMMUNICATIONS NOT REQUIRING ACTION A. Amendment to Rules & Regulations and Capital Facilities Charges 1. Draft Resolution No. 7XX: A Resolution of the Board of Trustees of the Santa Ynez River Water Conservation District, Improvement No. 1 Approving the Attachment of Appendix C and Appendix D the Automatic Annual Adjustment to the Capital Facilities Charges and Meter Installation Fees into Sections 603 and 709 of the Rules and Regulations effective January 1, 2018 The Board packet included a November 14, 2017 Staff Report discussing the Annual Adjustment Installation and Capital Facilities Charges and draft Resolution for the Automatic Annual Adjustment to the Capital Facilities Charges and Meter Installation Fees into Sections 603 and 709 of the District Rules and Regulations, including Appendices. Mr. Dahlstrom explained that the draft Resolution was being provided for Board review which amends the District Rules and Regulations Article 6 & 7, Sections 603 and 709 (Appendix C and D ). He explained the Board must be provided written notice of any proposed amendment or changes to the District Rules and Regulations at least 20 days prior to Board action. Mr. Dahlstrom recommended reviewing the lot size and minimum meter size requirements for properties within District boundaries and making possible amendments to better meet customer needs and requirements. He explained that when the Board adopted the 2016 Water Rate Study the requirements for ornamental landscaping and turf area was reduced from 1 acre to ¼ acre, which requires less water. He suggested that the Board might consider changing the minimum meter requirements for lot sizes less than 10,000 square feet 5/8 meter; greater than 10,000 square feet ¾ meter; 1-3 Acres 1 meter; 3 5 Acre 1 ½ meter; and above 5 Acres 2 meter to more accurately reflect customers needs and conform to the Rules and Regulations for water service. The Board concurred that additional information related to this amendment should be discussed at the December meeting at which time the final Resolution will be presented for consideration and action. The Board packet included the October 2017 Family Farm Alliance Monthly Briefing Newsletter. The Board packet included a November 1, 2017 letter from the District which was sent to 39 of the 396 Rural Residential/Limited Agriculture (RR/LA) classified customers regarding compliance with the District s adopted Rules and Regulations. Mr. Dahlstrom explained that staff has identified 39 RR/LA classified customers that have two structures on their property which are being served by a single meter. He reviewed Article of the Rules and Regulations which identifies that RR/LA classified meters shall be connected to and serve one single family residential unit only with no more than ¼ acre in aggregate of ornamental or turf landscaping. Mr. Dahlstrom stated that the affected customers were notified by mail that their water use November 14, 2017 Special Meeting Minutes Page 4 of 6

5 classification will be reclassified to Domestic effective January 1, He indicated that the letter has prompted numerous phone calls which staff has been handling and discussing options for compliance with the callers. Mr. Fred Kovol provided comment to the Board. The Board packet included an October 31, 2017 District letter addressed to Mr. S. Harper regarding a public records act request dated October 20, XI. APPROVAL OF ACCOUNTS PAYABLE: The Warrant list was provided in the handout material for Board action. The Warrant List covers warrants through 21047, for the time period of October 25, 2017 through November 14, 2017 in the amount of $313, It was MOVED by Trustee H. Burchardi, seconded by Trustee Walsh and carried by a unanimous voice vote, with Trustee M. Burchardi absent, to approve the Warrant List as presented. XII. XIII. XIV. XV. REQUESTS FOR ITEMS TO BE INCLUDED ON THE NEXT REGULAR MEETING AGENDA: There were no requests from the Board. CORRESPONDENCE: GENERAL MANAGER RECOMMENDS THE ITEMS NOT MARKED WITH AN ASTERISK (*) FOR FILE The correspondence list was received by the Board. NEXT REGULAR MEETING OF THE BOARD OF TRUSTEES: Mr. Dahlstrom stated the next Regular Meeting of the Board of Trustees will be held on December 19, Discussion ensued regarding the availability of the Trustees on this date and possibly rescheduling the date of the Board Meeting. The Board determined the Regular December 19, 2017 meeting will be cancelled and rescheduled to a Special Meeting held on December 14, Mr. Dahlstrom stated there will also be the Annual Meeting of the Santa Ynez River Water Conservation District, Improvement District No.1 Financing Corporation on December 14, 2017 as well. CLOSED SESSION: The Board adjourned to closed session at 4:50 p.m. to discuss agenda items XVI. A. B. & C. A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Subdivision (d)(1) of Section of the Government Code] 1. Name of Case: Adjudicatory proceedings pending before the State Water Resources Control Board regarding Permits and issued on Applications and to the United States Bureau of Reclamation and complaints filed by the California Sport fishing Protection Alliance regarding the operating of the Cachuma Project and State Board Orders WR73-37, and 94-5; and proposed changes to the place of use of waters obtained through aforementioned permits for the Cachuma Project 2. Name of Case: Adjudicatory proceedings pending before the State Water Resources Control Board regarding Permit issued on Application to the City of Solvang regarding petitions for change and extension of time and protests to the petitions B. CONFERENCE WITH LEGAL COUNSEL POTENTIAL LITIGATION Potential initiation of litigation against the agency [Subdivision (d)(2) of Section of the Government Code 1 case] 1. Cachuma Operations and Maintenance Board; Membership and Assessments November 14, 2017 Special Meeting Minutes Page 5 of 6

6 C. CONFERENCE WITH LEGAL COUNSEL POTENTIAL LITIGATION Potential initiation of litigation by the agency [Subdivision (d)(4) of Section of the Government Code 2 cases] XVI. RECONVENE INTO OPEN SESSION: [Sections and of the Government Code] The Board reconvened to open session at 5:45 p.m. Mr. Garcia announced there was no action to report as a result of the Closed Session. XVII. ADJOURNMENT: Being no further business, it was MOVED by Trustee H. Burchardi, seconded by Trustee Walsh and carried by a unanimous voice vote, with Trustee M. Burchardi absent, to adjourn the meeting at 5:45 p.m. THE NOVEMBER 14, 2017 SPECIAL MEETING MINUTES WERE APPROVED AT THE DECEMBER 14, 2017 SPECIAL MEETING. November 14, 2017 Special Meeting Minutes Page 6 of 6