Mr. Moorrees reported that there was a tour of the Six Basins facilities in April.
C. Administration and Finance Committee (AFC) Chairman’s Report
Mr. Moorrees stated that the AFC will meet on May 27th at 9:00 a.m.
D. Planning, Resources, and Operations Committee (PROC) Chairman’s Report
Mr. Bowcock stated that the PROC met on April 30th. The most important items discussed in this meeting are in the General Manager’s Report.
6. General Manager’s Report:
A. Citizen’s Patrol Contribution – Mr. Moorrees stated that since 2004, SAWCo has made annual contributions to the Citizen’s Patrol who regularly monitor activity in the San Antonio Heights as well as report water leaks and water waste to SAWCo. They also “partner” with San Antonio Canyon Watershed Committee in monitoring issues affecting water quality within the watershed area. Last year SAWCo donated $750 and Mr. Moorrees recommended the Board authorize a similar contribution for the current year.
Mr. Thomas moved and Judge Brodie seconded to donate $1,000 to the Citizen’s Patrol. Motion carried.
B. Red Hill Golf Course – Mr. Moorrees requested to allow Red Hill Country Club (RHCC) to use above their entitlement if the water is available. Mr. Moorrees referred to the graph given to the Board to show the supply and delivery of water to the City of Upland and RHCC which utilize the same wells. The PROC has recommended that the General Manager use discretion to provide system capacity to RHCC in excess of their entitlement if it is available.
Mr. Thomas moved and Judge Brodie seconded to allow the General Manager to use operational discretion to provide system capacity to RHCC in excess of their entitlement. Motion carried with Dr. Gattas, Mr. Elliott, and Mr. Hill abstaining.
C. San Antonio Heights Trail – Mr. Moorrees reported that on May 30, 2007, a proposed plan for a Master Plan multipurpose trail by the San Bernardino County Regional Parks Department was submitted to the PROC for review and consideration. The trail would cross many of SAWCo’s properties. Pictures were included in the Board Packet of what sites would be effected. The County is asking for a twenty foot easement on an existing roadway. SAWCo’s insurance broker, Epic, informed them that general liability insurance indemnifying SAWCo from any damage or claim would be sufficient.
Mr. Thomas inquired as to whether there were any future uses for these sites that would be affected by the easements. Mr. Moorrees stated that SAWCo had agreed to trade ten feet of property in exchange for some property on the easterly side of Reservoir 6 for a proposed development in the future.
Mr. Elliott moved and Mr. Bowcock seconded to grant a twenty foot easement to San Bernardino County Regional Parks Department as described in Item 6. C. Motion carried.
D. Lease of Stored Water in Six Basins – Mr. Moorrees explained that there were two issues for the Board to consider. The first issue is a one-time lease of stored water from Six Basins to the City of Upland. SAWCo obtained a Storage & Recovery Agreement with Six Basins and currently has 1,003 acre feet of stored water in that basin. SAWCo is subject to losing this water due to the fact that Well 26 and Well 27 have had a decline in production. Eventually it will get to the point were they are unable to pump out of those wells. Mr. Moorrees recommended that the Board authorize a one-time lease to the City of Upland of stored water in Six Basins up to 1,500 acre feet depending on what SAWCo has available by the end of the year in the basin. The lease will be at a rate of $174.24/AF and will be put into Operational Revenues instead of Capital Reserves.
Judge Brodie moved and Dr. Gattas seconded to approve the managers recommendation. Motion carried with Mr. Thomas abstaining.
The second issue is to consider an operational change in the way SAWCo facilitates delivery of the City of Upland’s entitlement. Mr. Moorrees referred to a graph included in the Board Packet which detailed the City of Upland’s usage throughout the year. It showed that the City of Upland exceeds their entitlement in the winter months and in the summer months they do not take their full entitlement. It was suggested that the City of Upland purchase their full entitlement every month. If they go over their entitlement they will be charge the supplemental fee. The amount that they did not take during the month would be considered unearned revenues for SAWCo. At the end of the year the amount of water that was not actually delivered would be transferred from one of SAWCo’s storage accounts for the City of Upland to use. This would allow for the transfer of stored water that would normally be subject to losses while facilitating the City of Upland’s monthly entitlement. Mr. Moorrees recommended the Board allow for the City of Upland to pay for their full entitlement every month and allow for transfer of stored water at the end of the year should they not use the full entitlement they paid for.
Judge Brodie moved and Mr. Hill seconded to approve the General Managers recommendation.
Mr. La thanked the General Manager for working with the City of Upland on this and pointed out it’s mutually beneficial points.
Mr. Bowcock suggested that other large shareholders be given similar opportunities.
Mr. Moorrees stated that he is meeting with the City of Ontario the following week to discuss their agreement and bring it in line with the City of Upland’s agreement.
Mr. Thomas inquired as to when this type of accounting would go into affect. He suggested starting it the beginning of June which was agreed on by Mr. Moorrees and Mr. La.
Mr. Bowcock suggested figuring it out from January 2008 just to see what it looked like.
Mr. Thomas clarified that the motion states that the agreement starts June 1, 2008 but can be effective as far back as January 1, 2008 depending upon the discretion of the General Manager upon review of data.
Motion carried.
E. Insurance Renewal Proposal - Mr. Thomas stated that he had received the proposal and he felt that it was more than acceptable. He asked if anyone had any questions concerning it.
Dr. Gattas inquired if there was a significant difference from previous years. Mr. Thomas stated that there was more coverage and the premium went down from previous years.
Mr. Thomas moved and Mr. Hill seconded to approve the renewal proposal received from American Alternative for the 2008 Insurance Commercial Package with ‘Excess Liability’ to $10 million. Motion carried.
- Project Status Report -
Ø Reservoir #12-Interior Coating & Seismic Retrofit
Pictures were presented of the work being done on the reservoir.
Ø Telemetry System-Phase 3 Replacement of radios & end use devices.
Radio to be installed in June. Scheduled for completion in August.
Ø Forebay Improvements
Should receive a ninety percent complete design plan by end of May.
Ø Master Plan Update & Model Calibration
Water Rights Investigation and Master Plan Draft expected by the end of May.
Ø Update System Maps
System maps have been reviewed and will be sent back to be updated.
Ø Cucamonga Basin Aquifer Storage & Recover Study
Should have final draft from Wildermuth by the end of May. Letter to GM of Chino Basin Watermaster to request dewater Basin 6 and direct discharge to Turner Basin for credit to SAWCo, City of Upland, and CVWD. Pictures depicting water being taken out of the basin for fire relief were shown.
Ø 10-year Meter Changeout w/AMR's [427 AMR's]
265 complete so far by force account.
7. Closed Session: None.
8. Director’s Comments and Future Agenda Items: None.
Adjournment: Mr. Thomas announced that since there was no further business, the meeting was declared adjourned at 5:42 p.m.
