MONTE VISTA WATER DISTRICT Central Avenue, Montclair, California (909) NOTICE AND AGENDA OF REGULAR BOARD MEETING
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1 MONTE VISTA WATER DISTRICT Central Avenue, Montclair, California (909) NOTICE AND AGENDA OF REGULAR BOARD MEETING WEDNESDAY, JANUARY 26,2011 7:00 P.M. CALL TO ORDERIFLAG SALUTE PUBLIC COMMENTIOPEN FORUM I Members of the public may address the Directors on any item that is within the jurisdiction of the Board; however, no action I may be taken on any item not appearing on the agenda unless the action is otherwise authorized by of Section of the California Government Code. AGENDA CHANGESlADDlTlONS I In accordance with Section of the Government Code (The Brown Act).,. additions to the aeenda - reauire a two-thirds vote of the legislative body, or if less than two-thirds of the members are present, a unanimous vote of those members present. It shall be determined that there is a need to take immediate action and that the need for action came to the attention of the local agency subsequent to the posting of the Agenda. 1. CONSENT CALENDAR: I NOTICE: All matters listed under the Consent Calendar are considered to be routine and non-controversial and will be acted I upon by the Board of Directors by one combined motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes unless any Board Member, staff person, or member of the public requests specific items be discussed andlor removed from the Consent Calendar. A. Meeting Minutes Meeting Date: January 12,201 1 Recommendation: Approve as presented 2. DISCUSSION ANDIOR ACTION ITEMS: A. Overview of San Antonio Water Company [SAWCo] (verbal) Presenter: Charles Moorrees, General Manager of SAWCo Recommendation: Informational report on the operation of SAWCo B. Water SupplyNYholesale Demand Projection Revisions Presenter: Mark Kinsey and Ray Harton Recommendations: 1) Amend the FYE Budget for the purpose of revising the water supply plan, wholesale demand projections, and operating revenues and expenditures; 2) approve the sale of 500 AF of water held in storage to Fontana Water Company at a cost of $527/AF 3. GENERAL MANAGER'S REPORT 4. BOARD COMMITTEE REPORTS 5. BOARD COMMENTS (Reports on ConferenceslMeetings Attended at District Expense) I
2 Nonce and Agenda ot Kegular Board Meeting January 26,201 1 Page 2 6. CLOSED SESSION: A. Conference with Legal Counsel - Existing Litigation (GC [a]) Case Number RCV 51010, CBMWD v. City of Chino et al. S. Conference with Legal Counsel - Existing Litigation (GC [a]) Case Number CIVRS : Monte Vista Water District v. Cora Constructors, Inc. et al. 7. ADJOURNMENT in office, located at Central Avenue, Montclair, California.
3 MINUTES OF THE REGULAR MEETING OF TKE BOARD OF DIRECTORS OF THE MONTE VISTA WATER DISTRICT DIRECTORS PRESENT: Sandra Rose, President Maynard Lenhert, Vice President Tony Lopez, Director Philip Erwin, Director G. Michael Milhiser, Director DIRECTORS ABSENT: None January 12,2011 STAFH PRESENT: Mark Kinsey, General Manager Bruce Lance, Legal Counsel Ray Harton, Manager of Finance and Administration Van Jew, Manager of Engineering, Operations, and Maintenance Mary Ann Melleby, Public Affairs Director Stephanie Reimer, Accountant~Customer Service Supervisor Tracy Tracy, Executive Assistant II/Board Secretary OTHERS IN ATTENDANCE: Gil Aldaco, Chino Basin Water Conservation District Kati Parker, Chino Basin Water Conservation District Louis Dudash Yoko Blount Loren Martens CALL TO ORDER President Rose called the meeting to order at 7:00 p.m. FLAG SALUTE Director Erwin led those assembled in the Flag Salute PUBLIC COMMENTIOPEN FORUM None AGENDA CHANGESIADDITIONS President Rose asked that item 3A, Presentation of Check from Chino Basin Water Conservation District, be moved to the beginning of the meeting. The Board members concurred. January 12,201 1 Minutea
4 ITEM 1: DISCUSSION AND/OR ACTION ITEMS A. Presentation of Check Board members, Kati Parker and Gil Aldaco, ftom Chino Basin Water Conservation District presented a symbolic rebate check in the amount of $63,072 representing hnds provided to the City of Montclair and Ontario Montclair School District to assist in onsite retrofit costs associated with the conversion of schools and parks to recycled water. The Conservation District's Public Sector Recycled Water Connection Program provided vital funding assistance that covered a significant portion of school and on-site park retrofit costs. ITEM 2: CONSENT CALENDAR Upon motion by Director Milhiser, seconded by Director Lopez, and unanimously carried: - - Mll MOVED: Approval of Consent Calendar: A. Meeting minutes of December 8,2010 B. Document destruction in compliance with Resolution C. FYE 2012 Budget Calendar ITEM 3: FINANCIAL REPORTS A. Register of Demands Manager of Finance and Administration Harton presented the Register of Demands for November Discussion ensued. Upon motion by Vice President Lenhert, seconded by Director Erwin, and unanimously carried: Mll MOVED: Approval of Register of Demands for November 2010 B. Financial Summaries Manager of Finance and Administration Harton presented the Financial Summaries for November Discussion ensued. Upon motion by Director Erwin, seconded by Director Lopez, and unanimously carried: Mll MOVED: Approval of Financial Summaries for November 2010 ITEM 4: DISCUSSION AND/OR ACTION ITEMS A. Investment Strategy Update Manager of Finance and Administration Harton gave a graphical presentation and reviewed the FYE 2012 investment strategy, explaining that with the current cash balance and funds invested in LAIF, the District is more than adequately covered for cash flow needs over the next six-month period as outlined within the District's Investment Policy. Mr. Harton then discussed additional investment options that are available and that would he a desired investment vehicle based on current market conditions. Upon motion by Director Milhiser, seconded by Vice President Lenhert, and unanimously camed: Mll MOVED: Approved the strategy to invest an additional $500,000 to $1,000,000 in securities with a maximum maturity of no longer than 3 years provided a spread of at least 50 basis points (0.50%) can be obtained January 12,201 1 Minute8 Page 2
5 B. Notice of Award: Main Office Elevator Design and Construction Management Manager of Engineering, Operations, and Maintenance Jew gave a graphical presentation and explained that access to the second floor of the District's two-story main office building is limited to two stairwells; one inside the building and one emergency egress stairwell on the outside. The second story of the main office building has offices, restrooms, photocopying and filing resources, and the Board room, which is used as a meeting room for Board meetings and is the primary conference room used by staff. Based on this need for an elevator, Requests for Proposals were distributed to eight architectural firms. The bidding and verbal interview processes were detailed and discussion ensued. Upon motion by Director Milhiser, seconded by Director Erwin, and unanimously carried: Mll MOVED: Authorized the Board President and General Manager to enter into an agreement with Brian Bloom - Architect for a not-to-exceed amount of $46,448 to provide professional services to design an elevator addition for the District's main office building contingent on satisfactorily finalizing the contract agreement C. Committee Assignments President Rose discussed her committee recommendations with the Board and with their concurrence, the following committee assignments were established for the next 2-year period: Engineering: Vice-president LenhedDirector Erwin (Director Lopez as alternate) Finance: Director ErwinIDirector Milhiser (Vice-President Lenhert as alternate) Management Assessment: President RoseNice-President Lenhert (Director Milhiser as alternate) Personnel: Director LopezIDirector Milhiser (Director Erwin as alternate) Public Information: President Rose/Director Lopez (Director Erwin as alternate) Water Facilities Authority: Vice President LenhedDirector Milhiser (as alternate) ITEM 5: GENERAL MANAGER'S REPORT In addition to his written report, General Manager Kinsey briefed the Board on issues and activities of the past five weeks. ITEM 6: BOARD COMMITTEE REPORTS None ITEM 7: BOARD COMMENTS (Reports on Conferences/Meetings Attended at District Expense) Director Milhiser discussed reactions to the Governor Brown's proposed budget, wished everyone a happy new year, and thanked staff for their hard work. President Rose commented on the upcoming County Supervisor Workshops and local Special Districts Workshops and encouraged all of the Board members to attend. Director Lopez wished everyone a happy new year. ITEM 8: CLOSED SESSION President Rose recessed the meeting to closed session at 7:45 p.m. to discuss: A. Conference with Legal Counsel - Existing Litigation (GC al) Case Number RCV 51010: CBMWD v. City of Chino et al. B. Conference with Legal Counsel - Existing Litigation (CC g al) Case Number CIVRS : Monte Vista Water District v. Cora Constructors, Inc. et al. President Rose reconvened the meeting into open session at 8:20 p.m. and stated that no reportable action was taken. Page 3
6 There being no fixther business, President Rose adjourned the meeting at 8:20 p.m. Respecffilly submitted, Mark N. Kinsey General ManagerISecretary January 12,201 1 Minutes Page 4
7 January 26, d Mark N. Kinsey GENERAL MANAGER Honorable Board of Directors Monte Vista Water District SUBJECT: FYE 2011 Budget Amendment: Water Supply and Wholesale Demand Revisions; Sale of Stored Water to Fontana Water Company STAFF RECOMMENDATION: It is recommended that the Board of Directors: 1. Amend the FYE 2011 Budget by: a. Reducing projected retail water sales revenue from $9,741,000 to $9,602,000; h. Reducing projected wholesale water sales revenue from $7,024,000 to $4,644,000; c. Reducing projected production-related source of supply expense from $6,182,500 to $4,759,275; d. Reducing projected production-related electric power expense from $1,401,800 to $1,377,300; e. Increasing projected non-operating related capital sources revenue from $1,619,800 to $1 1,519,800; f. Increasing projected non-operating-related debt service expense from $802,600 to $978,672; g. Increasing projected non-operating-related capital outlay project expenses from $4,261,940 to $13,261,940; and 2. Authorize the sale of 500 acre-feet (AF) of water held in storage by the District to Fontana Water Com~anv at a cost of $527/AF. COMMITTEE ACTION: This item was reviewed by the Finance Committee on January 19,201 1, and the committee recommended a~~roval. RINANCIAL IMPACT: The adopted FYE Budget projected operating revenues of $2.68 million and a working capital decrease of $762,900. The proposed FYE Amended Budget would result in projected net operating revenues of $1.61 million and a working capital decrease of $1,110,247. The stored water sale would provide $263,500 in additional revenues, resulting in projected net operating revenues of $1.87 million and a working capital decrease of $846, Genfral Avenue, Post Office Bmx 71 Mantclair, CA (909) FAX (909) wrnvwd.org Sandra S. Rose May& B. Lenhert Tony Lopez Philib L Erwin G. Michael Milhiser PRESK)ENT VICE PRESIDENT IURECTOR ljin CTOR DIRECTOR
8 FYE 2011 Budget Amendment: Water Supply and Wholesale Demand Revisions; Sale of Stored Water to Fontana Weter Company CONSISTENCY WITH STRATEGIC P UN GOALSIINITIATIVES: I Strategic Goal 5: Maintain responsible stewardship of District funds to address future needs. DISCUSSION Since adoption of the District's FYE Budget in June 2010, several changes in the areas of demand, water supply approach, and capital revenues have occurred. As a r dt of these combined changes, cumnt projected budgetary revenues and expenses no longer reflect anticipated year-end actuals. Provided on the following page is a brief summary of these changes. 1. Water Suvvlv Damand. Projected water sales (demand) have been lower from an original budgerary projection of 22,940 to 18,600 acre-feet. Projeded water sales revenues have been reduced from $17.5 to $15.0 million. 2. Water Su~vly. With the acquisition of additional shares in San Antonio Water Company, increased purchases of water through Metropolitan Water District's Program, and the District's FYE water supply plan has significantly changed. Projected water supply costs have been reduced Born $6,185,500 to $4,759,275. Increased participation in the D W program functions to increase current fiscal year costs while providing the benefit of reduced FYE 2012 operating costs. 3. Debt Issuance. In late October 2010, the District received $9,900,000 in debt proceeds to fund the acquisition of SAWCo stock shares. Debt issuance also provided a $900,000 contribution to the District's capital improvement fund reserves. The ftrsr semi-annual debt service payment of $176,000 will be made April During the Board meeting, staff will provide a detailed overview of the proposed changes to the FYE Budget. During this presentation, staff will also provide a discussion concerning the recommendation to sell 500 AF of water held in storage by the District to Fontana Water Company. If approved, the sale would provide an additional $263,500 in FYE operating revenues. Respectfidly submitted, Ray L. Harton Manager of Finance and Administration MdN*-t General Mana a b Page 2 of 2
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