HomeMy WebLinkAbout1994-12-14; Water Commission Ad Hoc; MinutesMINUTES
MEETING OF: WATER COMMISSION
DATE OF MEETING:
TIME OF ME€llNG: 2:OO p.m.
PLACE OF MEmNG:
December 14,1!394 (Regular Meeting)
City Council Chambers
CALL TO ORDER:
Chairman Louis called the Meeting to order at 2:OO p.m.
ROLL CALL:
Present:
Absent: None.
Commissioners Louis, Henley, Kubota, Maerkle and Melideo.
PLEDGE OF ALLEGIANCE was led by Commissioner Kubota.
COMMENTS FROM THE AUDIENCE:
There were no requests to address the Commission on a non-agenda item.
NEW BUSINESS:
1. AB #1214-01 CONSULTANT RECOMMENDATION FOR WATER RATE STUDY.
Bob Greaney gave the staff report, referring to the Agenda Bill included in the packet. The
Request for Proposals was sent out on September 23. Ten RFP’s were mailed out and eight
proposals were submitted. District staff narrowed the firms to four, and those four were
interviewed on Monday, November 14.
Mr. Greaney stated that staff had selected the firm of Montgomery-Watson to perform the Rate
Study, and a copy of their proposal was supplied to the Commissioners.
Mr. Greaney stated that during the interviews with the four firms, one common theme was
prevalent; to get the public involved in things such as rate studies to get their input in the
process. As a result of this, the scope of work was upgraded to have more detailed public
participation. It is expected that there will be a committee established by the Board that will be
comprised of representatives from the individual customer classification, such as residential,
industrial, commercial, agricultural, etc. There will also be one Commissioner on the committee
and this selection will be made subsequent to the Board’s approval of how the committee will be
established. The BoardKity Council could appoint citizens on this committee or they could allow
the District to come up with a list of names to present to them for the committee. The second
option would be the one preferred by the District staff.
December 14, 1994 WATER COMMISSION Page 2
NEW BUSINESS: (Continued)
In response to query as to how the names would be obtained, Mr. Greaney stated they could go
to organizations like the Chamber of Commerce and have them choose one of their members to
serve on the committee. As far as homeowners, it would be more difficult to get the word out to
have people that have concerns about water to be available to serve on such a committee. The
suggestion was made that perhaps the League of Women Voters could help with supplying such
names. Mr. Greaney stated that he thought that the citizen committee is the better wayto go. He
said he also suggested a BoardICity Council Member attend the committee meetings and act as
liaison with the Board to report back on the results of the public meetings.
Commissioner Maerkle commented that on the Water Authority and Reclaimed Water Report, they
had people from all walks of life on the committee and they talked before the meeting he
attended, and instead of being against the recommendations, they were all for it, which proves
that talking with people does help.
Chairman Louis asked about the costs of the proposals, and Mr. Greaney stated they were all in
the $70,000 to $80,000 range. Montgomery-Watson were lower than that, but when the District
negotiated with them and brought out the public participation, their price changed to $85,500.
The Sewer Rate Update would be an additional $20,000, but if that were left to next year, it would
cost considerably more. Mr. Greaney stated that it would not be too difficult to add a sewer rate
update analysis at this time.
Chairman Louis stated that the committee would be working with Mr. Greaney, and that would not
involve an extra cost to the consultant. Mr. Greaney replied that the consultant would be more
involved working with the committee instead of the Commissioners at a workshop. This would
involve ten to twelve people and an educational process. Chairman Louis said that staff could
do this and the consultant was not needed for that. He expressed concern with an increase of
$10,000 in the cost.
Commissioner Melideo suggested that staff negotiate with the consultant with regard to the
increase of $10,000 in the cost. She said this is a good program and she supports it.
Commissioner Kubota asked whether the new scope on the proposal was different from the
original, and Mr. Greaney stated that $75,000 was the original proposal prior to the last meeting
with the consultant and the public involvement. Mr. Kubota said that in the proposal it was listed
as so much cost per meeting. Task 11 would be $32,000, with Task 1 through 10 at $53,500, and
the difference would be the refinement of Task 11. Mr. Kubota said that on a per-meeting basis,
the cost could be less. Chairman Louis reiterated his hesitation to recommend the total of
$85,500.
The consensus of the Commission was that the contract should be for a “not to exceed” amount
and based on a per meeting basis, with $85,000 for the maximum number of meetings.
ACTION: On motion by Commissioner Henley, the Water Commission recommended to the
Board of Directors approval of Montgomery-Watson as consultants to perform the
Rate Study for the District’s Water and Reclaimed Water Systems; including the
Optional Sewer Rate Update; not to exceed $1 00,000.
AYES: Louis, Henley, Kubota, Maerkle and Melideo
December 14, 1994 WATER COMMISSION Page 3
NEW BUSINESS: (Continued)
Chairman Louis suggested that Commissioner Kubota be named to the committee to be formed
for the rate study. Mr. Greaney stated that in the proposal to the Board, the recommendation of
naming Commissioner Kubota to the committee could be made.
WATER COMMISSION:
Presidents & Manaaers Meeting
Commissioner Maerkle reported on the November 15, 1994, meeting at the StoneRidge Country Club,
stating that Wilbur Shigehara, Meteorologist in charge of the San Diego National Weather Service was the
speaker, and one fact brought out was that January in San Diego is the month with the most rain. He
said that trouble in New Zealand and Australia because of the change in water temperatures affects us.
ACWA
Commissioner Maerkle reported that one of the talks concerned legislation by Senator Cortese. This
legislation is a result of a subdivision that was approved and the last people to find out about this was
the water district. Bob Greaney added that this situation occurred a year or so ago in Oakland. The
County approved a large subdivision only to find that there was no water to serve this development. This
resulted in court action, and the result was that water districts should review and have input into cities’
general plans with regard to future water supplies.
Commissioner Melideo asked for copies of the presentations made at the ACWA conference. Mr. Greaney
said there are tapes and he will get copies for the Commissioners.
GENERAL MANAGER REPORTS:
GENERAL MANAGER’S MEETING - WATER AUTHORITY
Bob Greaney reported on a recent meeting, stating that emergency storage was discussed and how long
could agencies last without the emergency storage reservoir. If there were a two-month outage due to
an earthquake, the aqueduct between Carlsbad and Skinner would be interrupted and 25 to 30 percent
level of service would be the most any agency could provide. Based on our present usage, and cutting
back 25 percent, we would have water for only a matter of days. Mr. Greaney stated that some other
agencies could last longer, with San Diego and Escondido having the best supply of water. He added
that there were some inconsistencies in the Water Authority’s tables on Carlsbad, as they didn’t give us
credit for Maerkle Reservoir and for reclaimed water available.
Chairman Louis asked whether there was anything new on the desalination, and Mr. Greaney stated they
are proceeding slowly on that, as there are problems getting information out of Sam Tadros and making
certain the District gets what it wants at the end of the study.
Bill Plummer added that there are several issues that need to be resolved. Mr. Tadros has a Phase I
permit to be used by April with the Bureau of Reclamation, but he needs a joint venture. There are five
firms competing for the Bureau funds, and the Bureau will select three out of the five that they will assist
in funding and will look more favorably on one where a public agency is the partner. We do not know
how much money we are talking about and whether we would get anything out of it. Mr. Tadros wants
a lot of commitment up front for a water lease, and he wants a contract that we will maintain the facility
and he could not develop if the Bureau selected another firm.
December 14, 1994 WATER COMMISSION Page 4
GENERAL MANAGER REPORTS: (Continued)
COUNTY WATER AUTHORITY WORKSHOP ON PROPOSED METROPOLITAN RATE RESTRUCTURE
Bob Greaney continued his reports, stating there was a meeting last Monday, December 5, with a
Manager’s Meeting in the morning and a workshop in the afternoon for the Board Members, with a briefing
on the proposed Metropolitan Water District’s rate restructuring. Metropolitan has a capital improvement
program and need a fixed revenue source. They have two new charges, and they are a Ready to Serve
Charge and a New Demand Charge, and those affect Carlsbad the most. A third charge is a Treated
Water Surcharge. Mr. Greaney stated that Carlsbad’s concern is how Metropolitan will pass those fees
on to the Water Authority and how the Water Authority will pass them on to us. The Ready to Serve
Charge will take the place of the Standby Charge that appears on the property tax. The Water Authority
is satisfied with the property tax charge and wants to continue to charge that. It is possible, however, that
Metropolitan can’t charge a Standby and Ready to Serve Charge, as that is charging twice for the same
service.
APPROVAL OF MINUTES:
On motion by Commissioner Maerkle, the Minutes of the Regular Meeting held November 9, 1994,
were approved as amended.
AYES: Henley, Kubota, Maerkle and Melideo
ABSTAIN: Louis
NUCT MEmNG DATE:
The next regular meeting of the Water Commission will be Wednesday, January 11, 1995.
ADJOURNMENT:
I
By proper motion, the Regular Meeting of December 14, 1994, was adjourned at 3:30 p.m.
Minutes Clerk