 Let's call our meeting to order. Let's look out creek water district and Roll call would show all directors are present So the first thing we have is a moment of silence Recognizing the contributions of Laura Brown who is a long-time director. Sorry general manager of the water district Staff has given me some information about her that some of you may not be aware of She retired five years ago and After 17 years of dedication and commitment to the public service She was a good general manager will always be remembered for open-door policy special knack for storytelling After years of intense planning for supplemental water supply her greatest gift was the well master plan We resulted in the construction of both the polo grounds well and the O'Neill Ranch well and of course we're Grateful for her leadership and direction through complex situations for the betterment of our community and our district So, thank you everyone We have no public hearing tonight. We have a consent agenda Does anyone in the public or on the board wish to remove anything from the consent? Questions on 3.2 and 3.3 Anything else? I'll move approval of 3.1 and 3.5 Motion is second all in favor I Post that's unanimous Okay, 3.2. Okay, so there's just I it was a just a question for the change order for the seascape well, I just wanted to know The gist of that Okay Yeah, I just I had a question about the change order for seascape well, just what that entailed I Don't have it in front of me, but I'm sorry about that ballpark Ballpark just general we added a chlorination Room which was not originally in the plans because it was going to be raw water And then And I know the construction took a longer. They're still going. I know they're still coming We recently just did a tie-over from the raw water main to the distribution main so that we can use both lines Until the state makes up their Recalculation of the MCL So was that one of the biggest item I'm sorry I'm you caught me off guard the biggest item was the well rehab where we installed a stainless steel liner down to the screens where We did this at Bonita well five years ago is in addition to that but There was a time when we were building wells with mild steel And then we do stainless steel screens and then a mild steel blank and then stainless steel screens and The the blanks didn't do very well And when we did do a video of seascape, we decided to put in a Liner all the way down to the screens to prevent yes Yeah, and it prevents the if the deterioration of that other liner, which was looking like it was about to fail So that was the biggest change order with the well a lot of little Little things we had to move the main switch gear PG&E gave us a little new news and said oh it needed to be over here. So we had to minor electrical stuff Okay, so it was a big list of things and I'm sorry. I don't have that. That's okay It was just the main ones that I was curious about. Thank you. You bet much talk 33 yeah, there was just a question as you get this is on page 15 of the 133 pages. It was just a thing I had question about it's not even a big expense Kind of in the middle of the page. It's state water resources control board recycled water fees. I just didn't know What we have as far as recycled water fees right now Yeah Melanie's not here tonight that may in somehow be involved with Part of either pure water Project or the feasibility study private feasibility study, but I have to check and get back But go to the state water. I know we're getting a grant from them, but they do Charges for certain items and and christine. Is that anything related to you? Um, not potentially could be for our annual npds permit fee. We do that pay that annually to the state board Okay, it wouldn't be recycled water. I wouldn't recycle water for that one. That's a thing Well, you can let me know later. That's okay. I just if you knew What Anything else I guess I could move approval of the warrants in that and the and the credit right The purchase orders I'll second that All in favor. Hi. Hi host Thank you. Okay. The next was three four Yeah, I just I just noticed in the production That there was a Further jump, you know jumping production in december that was Well, it's still lower than the peak peak production in previous in the 2014 I guess is the Marker marking year, but it's still, you know, I just wanted to know if you had any ideas on Um, december was a really dry month. You know again, so that's probably where I would They think it's more it was more like a summer month than a winter month then In terms of water use No, I wouldn't think I mean what it's it's it was just Higher than november and it was higher than the december before that probably because of just the lack of precipitation so people probably needed to Feel they had to do some irrigation But it is a trend the last eight months at the this year has been up Compared to the previous years and and I even calculated it was a 6.6 percent increase for the total year from just from last year Significant Well, that I mean it was just that was the question whether it every time I see something like that Is it just a the bounce back and I've talked to a number of customers and they Chopped out their fat up with hauling water to the garden And then or is it just a reflection of the future of california because of climate change You know on the general You know, there's definitely a change in december in january even now even though it's rained It's still a lot warmer than it You know if it passed Don't you think so You know just on high alert on that And I think another thing at the end of that report we have it up on the screen you can see Since the the really low water usage there where the spike goes down A slight gradual trend upwards so And we are seeing that And if you do look at the evapotranspiration graph, it does show the weather index jumping from the month before so yeah Also, mr. Reston on 3.5, which is on the consent agenda. It wasn't being raised I wanted to disclose that I have represented north bay forward Who is the winning person Not having nothing to do with his bid whatsoever. I didn't know about it till it showed up, but I wanted to make that disclosure Okay, thank you But that's all I had to say about it I think this is informational so we don't need to approve it Discussion um So it's time for the oral communication So anyone who wants to address the board on any item not on tonight's agenda. This would be the time Welcome Thank you My name is scott mcgillivray. I live in live oak Founder of a group called water for santa cruz county. I've been here a couple of times over the last two or three years And I want to point out Something that's actually very good news for this This water board, which is the amount of water that's available from santa cruz to Help so cal creek. I noticed an informational item in the Minutes where dr. Jaffe addressed misinformation he'd heard in the public Anyone to make clear that we are so cal creeks willing to take water from the city of santa cruz and the amount of The 300 acre feet per year. I believe that equates to about 95 million gallons 100 million gallons something like that. There's another statement. Dr. Jaffe will contact individuals for further discussion I'm really happy to hear that because The real misinformation is that there's a lot more water available for you if you want it President daniel has noted that if the water is found to be compatible And received from the city of santa cruz the 300 acre feet or 95 million gallons is Only 20 of what's needed to fix the problem. So a little math gets you to 500 million gallons The really good news is there is 500 million gallons in santa cruz That you can have most of the time There's more than that sometimes it's water from the north coast One of the pieces of misinformation that we are have been suffering under is the idea that the only water you can get From santa cruz is going to require a permit change Because it's coming from the sand Lorenzo river That's actually not the case all the water that you're going to get for this 300 acre feet is coming from the north coast Because you can't get water from the sand Lorenzo river and there's more water there Now i've spent six and a half years working on this since john ricker brought the conjunctive use idea Got a minute to go thought that was the end And i have spent a lot of time working with the city of santa cruz With the staff with some of the water commission They all agree that the water that's available is not limited To 100 million acre 100 million gallons There's more behind that if you'll just take it I've talked with the county talked with the county water department. They also understand They are particularly excited about the prospect of water for you during the months of january through may Because there's no way that water comes out of any santa cruz water supply because it's just running out to the sea That's 245 million gallons So you got a lot of water there and what i want you to do is to Accept our offer to explain it because we can't do it in three minutes Happy to explain it. Happy to have you look at all the numbers talk. I'm over with the county So in the last five seconds. Thank you. I'm glad the subject is back before us Please let us come and try to help you. Thank you. Thank you Anyone else? Good evening and happy new year becky steinbrunner resident of aptos a customer of pure source Water company I just want to really Support what mr. McGilverry has said and urge you to really look into this and mr. Jaffe Dr. Jaffe. I'm still looking forward to meeting with you and really welcome that opportunity And to that end I just in looking through the The warrants for december. I see that for the Advanced water purification project alone It's almost 33 000 that were spent Um And that's a lot of money and and this is just a drop in the bucket proverbial to to what I know that you're spending So I really hope that you will take mr. McGilverry's Offer to heart and and meet with him. He's done a tremendous amount of work And there is A cheaper more quickly available answer to the water supply problem I also want to hope that For the connect the drops event coming up february 1st that I know your your agency will be represented that you do talk about this as a possible supply for the district and for the A solution of the seawater intrusion problem with throughout mid county area And finally is this the time that I could talk about correspondence? It changes or would you prefer I wait and talk about correspondence at the end? That's when it occurs. So yeah, it has to be then. Okay. All right. I have further communication to add to that and And again, thank you Anyone else Seeing no one I'll close the public comment any director impressions or responses Oh, I have something to say. Okay. Um, I just wanted to let you know that San Lorenzo Valley Water District is holding a board meeting on thursday And in that among the items is the their fish monitoring contract with uh with don alling associates and He was looking, uh I think uh, he has uh, they have it in the environmental committee of the san lorenzo valley women's club is Taking a strong position on that and going to present at the It just did Going up there. It's in boulder creek so And then um, I also had one other thing, uh I know that's a meeting that's full of Meetings, but the water now alliance is having their annual summit On the thursday and friday after the water reuse conference that's being held down in Monterey And anyway, if it's actually a sort of a unique think out of the box kind of water summit, it's I think the presenter last year one of the presenters last year was the the group in north carolina who Proposed the water rates, you know, so they they bring in um, different speakers that you know, have a very highly interactive Uh program format, so it might be worth going and they it's a free conference And it's uh, they even have some travel support. So So it might be worth uh, it's in salt lake city this year But anyway, it's on the radar. I especially think less likely might be interested So that's that's all I know okay I was going to mention that the There was a report about the uh Someone from that has been coming here talking about, uh, you know, a handling of the um The herb the grandparents houses And they had an article that came out in the Um, but the that one. Yes, right So that's it's out um, and Reaction to something that got said by the public We actually can't go and just take this water out of the north Coast streams because it belongs to the city and they might fire bullets at us and that probably wouldn't be nice And that the 300 Acre feet that we talk about is all that they have offered us at this point They may have others that they have but they've only offered us 300 and that's only on years that it's actually available So the average is going to be less than 300, but that's what we've been offered and that's all we have rights to at this point But things can change Okay, so That being the case we move on the board calendar is 5.1 Yeah, so I'll I'll just point out, uh, two items That's in the month of january So coming up next monday, uh, I mean, yeah, january 22nd Is the finance and administrative surface Standing committee four to five and then Following that on the 24th is the gsp groundwater sustainability plan advisory Group meeting six to nine. I'd like to note that that's at the Sheriff's headquarters. So a little different location there for everybody to attend. That's all unless you have questions on that I have a question on the location. Is it are they going to try and have the mj meetings there, too? Do you know because I think Supervisor leopold mentioned that's a nice location. I I Don't know there's some drawbacks to that facility as far as timing We had to get special permission after that after that hour and that sort of thing so But we can see how it how it how it works for us versus the simpkins center. So it might be an option Anything else? Okay, 5.2 board assignments status report Yeah, really nothing to report out there noted in red are What recently the board directed us toward and of course we always strive to accomplish those items and actually the first Our item b there under special projects Is mentioned I'll mention that later in the agenda tonight Any questions Any comments Okay, we move on to item 5.3 the quarterly organization wide report Conservation customer service field. I just wanted to touch on the accessory dwelling unit item that's on the in the report and that's the introduction of senate bill 831 Which is the third? bill introduced by senator wikowski And this one comes back and basically says that We cannot charge connection fees for any type of adu Right now we are only prohibited from charging connection fees for those conversion adu's that are constructed entirely within the square footage of a home or a permitted legal accessory structure and so this would Eliminate the ability to charge connection fees for any adu's and it also appears that it would limit our ability to collect Impact fees or other fees So water demand offset fees may be Targeted by this bill and it just came out Bob basso can follow up on a little bit of the the research that he's done on that In the last week. Were there any other questions about the status report? Sure Yeah, I just it wasn't really a question It was just I liked I liked getting the information that you gave about the different choices with metering And I didn't know I was I guess my question would be would it be helpful to Agendize a discussion of that so the board can give direction on that at some point when you have more information Sure, I think what we intended to do was put together request for Proposal from a consultant To do an evaluation for us and at that time we would bring that rfp as a draft to the board and ask for your input At that time, okay, that sounds reasonable. Okay, great. I have a couple of questions You mentioned on the first page. There are not various constituents that you're testing for And I wondered if you had contacted the regional board to see what items they is this the list of things They would require or there are other things it is the same exact list of constituents that The city of I think it was elk grove Worked with the regional board on a stormwater project and this is what they tested for There's not a lot of regulatory guidance out there right now So we we kind of went with what's already been approved and Established it may even well be that other regional boards would do different things too. So Yeah, so I wanted to make sure we were in contact with them and know what we're doing with regard to that um I have another thing on page 45 um under residential indoor um Conservation activities You have the of course the residential toilet rebate for the 0.8 Is there any other? toilet rebate activity going on or is that Basically taken over all of the So that rebate that's listed there is the rebate that's funded with the water demand offset fees And so that's what we're not funding Toilet rebates for residential customers out of our district rebate budget at this time It's all being paid for by water demand offset So in terms of toilet rebates That that situation is not additional. It's basically taken over all of our yeah, it's replaced the old rebate um When we look at things like our urban water management plan then Which probably was considering in the future more and more toilet rebates Since that's no longer happening next time we do that We need to take that into consideration that You're not going to get savings from toilet rebates anymore because you just say all that's going for the wdo Yeah, and we um, we also when we redo our demand projections the next time around whether that's Before the urban plans do um, or at the time the urban plans do in 2020 um, we'll also need to factor in some things we didn't account for like accessory dwelling units and um cannabis cultivation so Yeah, there's some things that were missed. Okay. Thank you Okay, where do we stand engineering Thank you Well the first item we talked a little bit about um, I wanted to also mention that the granite way well is We're coordinating with pgne at this time for the power to the site But obviously no construction has started but it is basically on the shelf and we're Shouldn't take long to get that to you guys for calling for bids um in the next month or two Today the biggest project that we have going is the cornwell tank Recote and the contractor did begin Removing of the interior coating In the last couple days and we did get an opportunity to investigate and inspect some of the structural steel And we did find that there is substantial metal loss at the The top of the tank where the vent is the i-beam sit on a on a circular Steel plate called the dollar plate and that's typically where tanks usually corrode the most and so We're gonna have to likely do a retrofit us some sort of structural retrofit on those i-beams because they're they've lost at least 50 percent of their metal We'll keep you posted, but it'll likely be a change order But it's not uncommon it's been done before and we'll keep you posted Also on this list is the soquel drive cast iron project which knock on wood has been relatively quiet with leaks, but It is on our radar and as soon as this cornwell tank project is a little more in Day-to-day operations we can get started on that, but it'll also come to you for calling for bids Shooting for summertime spring to summer of this year to go go to bed And then of course it was discussed earlier in oil communications the surface water Pilot program we are still Looking at compatibility of the two waters Um They we're getting ready at the end of this month to initiate the The the tests with varying degrees of water blending Right now they're conditioning all the coupons and we'll share those results as we get them Initially, they did do wire raw water raw wire samples And initial results showed that the two waters are more compatible than we initially thought so that is good news. It's not Um Not definitive yet, but that test did conclude that they're pretty compatible So we'll we'll keep you posted as we go Any other questions a lot of you see on the list there for fire services and water services are our staff's Quite busy with some of the new and remodels going on Any stuff I have a question What kind of cathodic protection do you use on your tanks? It's passive Magnesium anodes anodes, yeah, and they were working properly Yeah, they work well for the parts of the tank that are submerged, but unfortunately the roof Is not submerged so it doesn't do much for that But they actually weren't You know the the rest of the tank is in pretty good shape other than it's It's not corroded and most of the tank that's under the water line is in good shape It's where there's that oxidative state And and then you get the chlorine gas is also aggressive To any of the non so you don't have to replace the cathodic protection with no No, we don't we can reuse it Yeah, they're in good shape we have them We have them evaluated and the last evaluation I think was just this last summer and The corrosion company said that there's nothing wrong with it So and you would see The anodes, you know sacrifice and you'd see a pile of magnesium on the floor And they're in good shape still Any other questions I had one. What's the status request for a sound wall on the southern boundary? Mentioned it. Okay. Um, yeah, we've We have a neighbor, um, we the corporation yard butts up against gary drive, which is residential and some of our neighbors are Some of our neighbors are on rosedale, but there there's a home that's right up against our corporation yard and um currently there is A chain link fence separating the yard. There's also a another type of fence. I think but it's not a It's not a substantial fence. And so there is some sound that does get generated in our lot And um, that was a suggestion by that neighbor is you know Having more of a like a 10 foot block wall along that southern boundary Actually had that question too. So are we considering that or You mentioned it was a quest and certainly it is but yeah, I think we'll bring You know, we'll we'll evaluate the cost for doing something like that and bring it to you. It'll definitely be a board action. Um, It's not a cheap fence to build. Um But it would it would increase security, of course. Um You know, there's plenty of good things about it other than the cost, right? So we can we can see how that fits into our budget I would like to see it brought to us to see what it would cost. Yeah. Yeah, we'll we'll take a Stab at that when things settle down a little in terms of the capitol ordinances as a 10 foot fence wall like that legal We're in the county We're in the county and you can get a over height permit Or something like that, especially if it's driven by, you know, the neighborhood and their support for it I think we can get at least an eight foot fence with an over height. Maybe a 10 at the most Okay, thank you Um, I don't have anything to add if you guys have any questions on this Any questions? No I had one. What's the status of the ammonia? Our well Well, the wells been all since october After we installed the packers to train Packer off a sort of the middle of the well and that didn't work We just got a proposal in from the company that Did the depth discrete study and also designed the packer The next thing we want to try is to Lower the lower packer To get the lower producing screen further away from the zone that's suspected to have the higher ammonia and A section an engineered section so the pump is actually pulling from even lower than that area And we're also Possibly going to have another packer in there so we could completely block off their lower zone However, we would be just then pulling from the upper zones with higher iron amanganese and there might be some other issues with that from just having basically a shallow well, so We're looking at that option before we Are going into treatment options. We have solicited some Qualifications from some engineering firms that we can go to next if this Next try does not work Thanks, because i'm i'm glad to see we're still working on it because that was quite an investment Oh, yeah, no forward. We want that well back. Good. Thanks Okay, what's next Special projects do you want to take that i'll cover that So a couple things i'll report out that melanie malchumacher director christians and myself Toward the padre dam advanced purification facility At the end the end of november there and it's quite informative to see what they have going on but a full system pilot system running their Future plans. I'd like to also note that the sign up for the counter california water reuse conference That's held in may march 25th through the 28th and it's down here in monterey We if you're planning to go please let us know Because if you if we sign you up before the 29th get the discount and we like the discount so thank you on that Need to see In front of you right there. You can just see a couple of the ads I know not a chance to see everything that flies By these are in various papers that sign in the middle is actually hanging out in front of our Facility there on soquel. I think it's a nice sign and then Lastly go to the end of this report Connecting the yeah connecting the drops. Here's the agenda for that february First at new brighton middle school and you can see that it'll give the public a chance to Tour different stations there. There's a i think that's and then there's some presentations by Each of the ground water sustainability agencies. So just want to make people aware of that. That's all I have What's the Presentation on january 25th to the capital city council about yeah, that's just gonna be just talk to their City manager today They it's about a 10 minute update just where we are on our community water plan and our various projects So it's going to be held at the beginning of the meeting. It's um When they put you at the beginning it's more of a just a quick delivery 10 minutes or less and they usually don't like Asked too many questions that sort of thing, but you know because we do supply them water The vast majority of their water supply comes from us They like to keep in touch with you know, how we're doing on securing a supplemental supply Okay, thank you Let's see what's next finance So ron has already mentioned that we have a finance committee meeting on monday at four o'clock at the district office And then I also want to point out that um bond disclosure requirements necessitate us publishing our financials on the Municipal securities rulemaking board Dataport website, so that's all been taken care of our our financials are available publicly to our vistas at this point Any questions Human resources Nothing much to add to the items on the report There was some Feedback on the item that was listed for the january 10th joint hearing that was scheduled at the state legislature Regarding calpher's retirement funds. I didn't have a chance to read up on that today with my schedule so I don't have a report out on exactly what happened with that meeting but Calpher's website is really good at providing information on updates The other thing that's not included in this report. I have sent out notice to our Board of directors as well as all of our employees and we're proud to participate with The other local water agencies in the county for a santa cruz warriors night for local water agencies staff and so everyone With all of the local water agencies in the county of santa cruz are invited to attend The santa cruz warriors game on january 31st And so if anyone's interested we get to go have a good time with our brethren And purchase tickets to do that. So you're welcome as well Yeah, so I'll report out three things My section here Number one is the monterey bay community power update. I think director lehu asked us to investigate For them to come back with what options are available Um Regarding that service And as you can see just a little bit. Let me arrow down here. They are At the point where they have various options there But we believe there and let me go back So one is we take the three percent rebate and can just keep it use it for our own needs The other one is direct that three percent rebate Back toward renewable energy resources And I believe those are local ones and then they The third one there is direct that three percent, which is the rebate. They're going to give us If we're enrolled which we we will be unless we opt out Direct that back toward low income But I had conversations with bob basso and you may want to do you want to comment on that at all I really think you're limited to number one Because number two and three you're really giving district funds to some other entity Yeah, right. Yeah, but but I will say when I reached out to the agency here I said, you know, I had an inkling of that and that's why we reached out to bob and and leslie here and They and they're just they're just trying to get this pro this Agency going in program. So they they were soliciting input. So hey if you're running any roadblocks come back to us So we'll be thinking about if there's any other way to arrange it or if there's anything else we can do and provide them any More direction that might work better for them in us Did they have a date? A day to win when they're going to make the switch over. Uh, yeah, it's in march. It's like march Automatically switching everybody's in I think february for residential and then Commercial is in july if I remember right, but I was at a scott's valley water district meeting the other night And they pretty much acknowledge that two and two and three are not available To publicated agencies Yeah, but private individuals could she study that? Sure I know when we've looked at eir issues in the past we have Thought about, you know doing some local investment in carbon-free study to get that I was wondering I mean does the first one obviate any of those responsibilities because we might have we could use that to Perhaps satisfy eir constraints We could do that I don't think there's any problem with that from investing that in the and the good that would be distributed amongst our all our customers Yes, yeah, yeah, that's definitely an option And like I said, they're just getting on their feet and so I'm sure it'll evolve a little bit And then number two, I just want to point out this, uh, special districts leadership academy conference Uh, the california special district, uh, association csda You know offers a range of things Really centered around governance as opposed to aqua or something like that that are, uh, water reuse, which is more technical Or, uh, politically focused This is just more around governance and just wanted to put it out there I actually took this program maybe like eight years ago and they've morphed it and I think, uh Probably done a uh, even enhanced it. I take some of their other programs and I think they get, you know, pretty much to the Point So if you go on that link, you'll see different sites I think the next one's in Monterey and then up in Napa and I forget where it is next after that So just want to put that out there and then the third item there is Wichita Falls Texas they're in direct potable reuse project. They're just about ready to, um Pull the switch on that and and get it cranked and where they Purify water and send it up to a reservoir and use it And I think the article's linked there. Yeah At what was interesting is, you know, when they interviewed the, uh, public works director He said this is nothing new. It's it's been done in Wichita before and what he's talking about how treated water has been Put in a river and then used downstream. So I just thought it was worth noting there Any other questions Okay, it's time for the public to give us their input on these items Thank you. Becky Stein were in there. I have a question on the engineering report Um on page 47 and where it talks about the granite way well It mentions civil improvements pending PG&E service And construction schedule for spring of 2018 I'd like to know what civil improvements involve And um also to ask if there Has ever been any testing of any of the water there from that well Including the panel of contaminants that were found in the Contamination plume related to the Underground storage tank in Aptos village project It was recommended to your district by Mr. Tim Fillmore from hazardous materials at county environmental health services that you do test For that panel. I know that I have seen tests of panel contaminants related to dry cleaning contaminants, but they did not include the contaminant panel That that were found in the in the contaminated soils of that tank Thank you. I'd like an answer if I could please Well, I don't know what the staff wants to say but Anytime we put a well online We have to do a full set of tests and you know We have to submit those tests and they would certainly include dry cleaner fluids They would certainly include hydrocarbons, which are usually what's in these tanks And so we would have to test it and get it purified to that regard I don't know if the staff has anything to add but I Before we put it online we'd have to do you know all those tests so Yeah, and they're soil borings done our soil testing Usually what they do when they detect something like that in the soil they they test they find it They scoop it out and they keep testing till there's no more left there And if it does continue down far sometimes they'll require you to test that in the water also That's what the county would have to do, but we also have to test our water just in general. That's rich required in a situation like that. Okay So anyone else Hello, my name is bria steinberger. I was wondering about the um the arrowhead water or lake thing um two questions actually so Is the water that goes into the creek um the Same water that comes out of the um The treatment plants like the one you're planning to put in in um the your district Like the is it treated to the towards clear She's asking if it's purified. Yeah, if it's if it's secondary I can give you a quick It's just so I was going to say there's two in that whole paragraph There's one where the water is going to be treated to the same level of treatment It's really you know, it's reverse osmosis microfiltration and that's Very purified water they mentioned at the end of he mentions at the end of the paragraph that for years what's gone on is just Typical wastewater treatment that's gone into a river And then has flowed downstream into the next community's water supply So that's not something new that's just kind of explaining the way things have gone if you live along a river And that's where you get your water Getting somebody's upstream wastewater And that happened I forget with the word they used in the NWRI conference had a name for that But I can't remember the name yeah, but like accidental reuse So I just mean Mississippi River is famous for that because it goes from city to city to city so two separate things there The new thing is going to be very purified water added to a reservoir Okay, excellent. Thank you Sorry Sorry so short My name is Jane Paradise. I live on Rosedale Avenue And you are mentioning The letter from the neighbor on gary drive, which is on the southern side And his letter is expressing other complaints that we other neighbors have been giving to the district for a while And so I Want to add that To his request not only the southern border but your quest for a bid for a wall To not only the south but also the east which affects rosedale Because what's happened is on rosedale you demolished a house and some Natural foliage all of which were sound barriers for many years. I lived there for over 30 years and you're The noise and the vibrations Have you know are exceeding your boundary lines, which traditional commercial Uses, you know, like you're essentially have been growing and Are more of a construction yard now a lot of noise and vibration and any other commercial Enterprise like that has a requirement that your sound and vibration should not exceed your boundaries So, um, you know, it's so of what i'm not only the eastern side I'm guessing people on capitol avenue feel the same way So i'm suggesting requesting that you please in this bid That it be something equivalent to a stucco wall or something Your level of use of your property To because you're in the middle of a residentially zoned area And you would be required to contain that noise and vibration Within those boundary lines, and we've complained about this about a year ago We were assured You would address it and it still hasn't happened yet. I know foliage was planted So i'll look forward that not only rose, you know, the eastern side, but i'm guessing Also add the west so essentially your property should have a substantial So, um, the Tallest and thickest wall to contain all the noise and vibrations that your operations Turned into thank you very much Thank you Anyone else? okay now we move on to the administrative business, so i'm Oh wait, sorry district district council. You're right Just a short follow-up on what shelly was talking about Ron actually got a notice from csda about this wiskowski's latest bill Sent it to me. I call. I immediately contacted aqua who said first we've heard about it But they then followed up on it and contacted me and asked if I would join in a Conference call with the staffer from the senator's office. That hasn't happened yet But I did agree to do that because I think they need to realize that At least in this county an ad you could be 1200 square feet Which is bigger than some houses and that's a substantial addition To the water district and then the question becomes if you can't have wdo fees What's the alternative which is perhaps a moratorium that's been looked at in the past? So I think they need to recognize that Well, thanks. Well to point that out. I will one of things that got to me is it says Shall not be subject to impact fees connection fees capacity charges Or any other fees levied by those entities? So you might even think that you know fees for water use Someone's going to claim that you know, I get free water Perhaps out of that and so it's very broad. Yeah, and other agencies while they don't charge A new connection fee Do do a fixture count To see how many new additional fixtures will be added and that may require a different size meter And this is basically saying can't do that either right? So it's a very broad bill. It doesn't really recognize all of its implications And I hope to point that out to them. Yeah, thank you Any questions Thank you Now we go To item 6.1. I think this is yours tracy We at the district are very proud that we have a great community of support And tonight we would like to recognize several members of our community Who have stepped in and voluntarily Opted to help us out in our processes and so the board tonight will be presenting Resolutions in appreciation for several community members And I would like to go ahead and have Dr. Daniels Read our first resolution for our first community member Well, first I'm going to read what staff has written about, you know, the committee and some of these individuals So the standing committees play an important role in our organization by assisting and or advising the board Developing recommendations and providing oversight and transparency in the district's business practices Customer participation on these committees provides great added value to the process and the outcome So our first awardee is larry freeman And they say he's above and beyond involvement as he attends our board meetings Periodically email staff and who gave us the heads up for the grant the guideline changes were being proposed for the prop one ground water grant So thank you larry And number two can't charard finance committee and they say he's experienced with water agencies and provided valuable contributions Especially around finance and infrastructure issues And third a dale gardener is passionate to get information out to the community members and that's very important to us as well These three individuals have come forward Maybe we should maybe we should yeah, let's vote on this first So these three things Let's do the first three. I'll move approval of all four of them all four. Okay second There should be a public comment Okay, well if anyone wants to get up and complain about this, this is the time Seeing nobody Roll call Dr. Lathar Yes, Dr. LeHue. Yes, Dr. Jaffe. Definitely. Yes Director Christensen. Yes, and president Daniel. Absolutely. Yes. Thank you. Okay Three individuals, please come up. I think only two of them are here today And then at the end we'll get up we'll get a picture with the tower board Glad I wore makeup By standing committee And A true commitment to the so-called water district as he also frequently attends district coordinates map therefore we at resolve We all join extending our sincere appreciation for his service As a community member whereas the jail gardener is a customer of the silk up people are registered And whereas Ms. Gardner was appointed by the board in April 2016 as a voluntary community committee member to the board's public Outreach standing committee and whereas Ms. Gardner has committed to volunteering her time to attend meetings on a bimonthly basis And provided insight and valuable input to the board's public outreach standing committee And whereas Ms. Gardner is passionate to get information out to the community members and offers a Voice to the so-called free water district public outreach committee on issues design ideas and planning And whereas Ms. Gardner has demonstrated a true commitment to the so-called free water district now therefore be at resolve We all join extending our sincere appreciation for his service as a committee member I'll do it on you. All right. Let's let me know you But we're not done yet We have a One of the fourth motion we did was the resolution appreciation of the members of the water rates advisory committee And as I understand Tonight we have John McCoy, Nancy Trevino, John Dickinson, chris france Wanda Williams, Joe Martins and Hans Sherman here, or at least that's what I was told So would they please come forward and anyone else who I forgot to mention The problem with doing it over there is the cameras don't go over there. No They're all the same Whereas members of the district water rates advisory committee are customers of different water districts And whereas members applied for and were appointed in may 2017 is voluntary community committee members to the board and ad hoc water rates committee And whereas members committed to volunteering their time to attend meetings to evaluate Provide recommendations on new district rate structure And whereas members offer an important voice to the so-called free water district and provide input on the district's upcoming rate study Where members have demonstrated a commitment to the so-called free water district Now therefore the end result we all join extending our sincere appreciation for service as community volunteers They're up on top and all names are together so each one of them gets one Yeah Thank you And a little bit later we're going to expand this service too because we think it's so valuable we want to do more of it, so Okay item 6.2 Is some water demand offset Wilson letters Hello again the first one is Similar to a project you saw In the fall of last year where The water demand offset program does not apply until Within a certain three-year period I don't know if you recall making that policy But this is another one of those lots that had a subdivision report public report And so they need to move through the process before Next january and then they Can qualify for that exemption The second one is Just down the street right right across the street actually It's a commercial retail storefront with a home behind it and they're planning to Take down the house and build a duplex and the retail space will stay the same Any questions on this And they did i'm sorry that was conditioned on them paying the fee and they did pay today this morning Okay. Oh, that's right. I will move the first one item 621 second all in favor high post I'll move approval the second one I'll second 6.2.2 Okay, all in favor. All right post. I pose. Thank you Item 6.3 approval selection of the erp vendor software So back in spring of last year we undertook A project to start looking at a new erp system to replace our springbrook system because it's no longer receiving the customer support through xcela that it used to So what we what we did is we formed an erp project selection team that included people from all different departments that are impacted by this software And what we discovered as we went through this process is that first we really needed to get some idea of the scope Of what we wanted to see in a new system And so before we could do an rfp We really needed to go out there and take a look at some of the systems To do some demonstrations and see what they all had to offer And through that process what we found out is we actually did kind of do the steps for a us rfp selection process But we did it without having a formal rfp in place So we took a look at a number of systems We eliminated those that weren't going to provide the enhanced functionality We were looking for and we winnowed it down to where we only had about two viable options And so the erp selection committee sat down and met And there was very clearly a frontrunner in that process And that frontrunner was tyler encode software systems And so we're making the recommendation tonight, especially since tyler encode or tyler technologies is part of the national joint powers alliance for a government purchasing contracts To go ahead and Approve us to pursue A contract with them for their erp software solution Any questions I had one question It looks like We're spending a hundred thousand dollars that we haven't budgeted yet because it's 2018 2019. Is that we had we had split it In the budget there were two fiscal years and we had split it between the two fiscal years So we had a budget for 2017 18 And then we had a proposed or forecasted budget for 2018 19 because we didn't expect that We would be able to Purchase software and get it implemented in the same fiscal year So you're correct. We only appropriated part of that for 2017 18 We have to do something special to allow us to now purchase it because it's Still we should we shouldn't incur any additional costs beyond that until we get to the implementation phase Which will actually be in 2018 19. So it'd be similar to any sort of Public works contract that we engage in we budget for the work we expect to get done this year. I see. Okay. Thanks Anything else I'll make the motion. Why do public comment? Oh, yeah public. Yeah public comment Seeing none Right now. I'll make the motion. I'll second We have a motion in a second. Let's see. Do we need to Just vote on it all in favor. Aye. Aye posed That's unanimous Actually, it was two motions, wasn't it? Yeah, can I clarify? Are you making motion number two? Yeah. Yeah We can make two motions at the same time. Oh, okay. I see. What? Yeah, okay Thank you. Okay. Now we go to item 6.4 The rate analysis So tonight we have both Sanjay Gower and Kevin Costiak from rough tell us consultants and you've met with them before We had a workshop back in December where they presented their preliminary recommendations on the customer select Um Rate option and they are here this evening to go ahead and present their final report on that on that effort Thank you. Leslie president board members staff and public like to present our presentation associated with customer select And um, so this is a summary presentation that I presented before we've also developed a rec report That summarized this um, and I if you have any questions throughout my presentation, please let me know and we can clarify So as you know, the study objective was to facilitate workshop with the rate Advisory committee and with the board to examine alternative rate structure customer select to see if it makes sense for the district Um, we also evaluated different policy options associated with that to guide us in that decision making process We used what we call a pricing objective where we asked ourselves What are the most important we asked you specifically and advisory committee? What are your most important concerns based on those print concerns? We can determine which are the policies that we should develop and prepare recommendation and framework for taking to the next Step, which would be then if desired by the board to develop actual rates So the process um, we had a series of workshops um, as you can see this was actually a pretty aggressive schedule We started end of these october With the first kickoff meeting and advisory Um, we went through a series of workshop with advisory and with the board and we developed a report Um, and then today's the last day of for this um part of the study As you know, you are a fixed cost business your 97 percent of your cost is fixed the 3 percent of your cost is variable This is um for in the water community It's normal for agencies to be a high fixed cost those agencies that don't have such a high fixed cost Is because they usually have some imported water Still their fixed cost is relatively high up to um 80 percent Some of them might be even a little bit lower now with the variable section As you can see you collect most of your variable your revenue on the variable So there's a mismatch here as we know this is a problematic during drought conditions Where revenues fall if the cost do not why have we historically done this is because we view water as a commodity Um, we and there's many reasons why we do that one of the main reasons we do that is that for conservation efforts We're telling people Water scarce. It's a commodity. Please use less of it. It's a scarce resource Now the challenge with that is that 30 67 percent of our revenue is from the commodity and only 3 percent of our cost is variable And so now there's because of that disconnect and because of drop in sales Um and the cost still remaining the same There's a dialogue in the community in the water community to try and to change it from being saying hey We're not a commodity. We're actually a service And the idea is here is is that we're telling customers that there's a hidden cost here Significant hidden cost which is the ability to use water even though we're none of us are at our homes right now There's a cost there 24 Or seven days a week and we need to somehow capture that cost What historically agencies have done in in california has tried to increase the fixed charge But by doing that try and increase the meter charge affordability conservation messages are sort of thrown out the window In in an attempt for revenue stability Customer select now is an attribute where you can sort of hit a lot of different attributes You can get the higher revenue fixed costs You can help with affordability potentially and that's the one thing we need to examine more And it also helps with conservation message because customers can lock into a higher program or in a higher program if they use more water Now another attribute of customer select is that it also can help if designed properly It can design it can be reflecting of the water system besides water being a fixed cost business It's also a capacity business Because really we designed the system for the hottest day plus fire And the question is just whose needs that capacity who should pay for that capacity And then sort of sort of fundamentals of a cost of service analysis is allocating that cost So with the customer select we can actually Attribute all that peaking to those customers who use the system and they are locked in to that in some sense by paying it The plan tier widths the probe the plan itself can stabilize revenue And by having this sort of flat charge known necessarily commodity charge It also provides a conservation message now because if i'm in the higher Plan i'm going to have to pay throughout the whole year. So i have incentive to try to get into a lower plan to have an actual saving throughout the whole year So this is an illustration of the plan where we would have it in increments of two as actually suggested at the last board meeting To do 50 gallons. So you have plan a b c d e Etc etc as you can see right over here What we've done next is is then we asked ourselves. What do we care about? What are our goals and objectives? We did this through the advisory committee We did this with the board for me. What was very interesting was the alignment of these two and how similar the results are Now with the advisory committee, we didn't ask them some we didn't ask one specific question Which is water resource management? We did ask that for you, but as you can see they are pretty much the same results So I found that very interesting So that means that you two are very much in sync in your thought process Which you never necessarily see in a lot of other agencies we work with Based on that then we can come up with now. What are the most important things fair and equitable? Defensibility water resource management and we can ask ourselves now What would make sense in order to design our program based on that? So fair and equitable if we want to be truly fair and equitable we should have a plan that has many programs And it should be narrow so that we really target each individual needs Also helps with defensibility concerns that with this program So I'm going to I'm not going to go through each one of these if you're interested We can if you have questions as mentioned we did talk about this last time I was here and it's also in the report Um, but I do want to hit the key objectives first fairness and equity So that dictates many plans tailored individual needs Defensibility we want that narrow my concern from prop 218 perspective is to disconnect potentially with potential capacity And use especially if the width of the plan are very large So more narrow they are then you're basically charging for that incremental capacity that they're using as um directed as I'll be mentioning earlier later on in my presentation 50 gallons was sort of the benchmark We decided on which sounds like a great number to use So that will help us with that so the outcome is to have many narrow plans to meet both of these objectives Also with the advisory committee we talked about this and about who should we roll this out with What makes sense is to do this with residential customers if we were going to do this Um, and the reason why is that their use and their meter sizes are similar Um, there are some non residential customers that have large meters who just need that it's basically a standby So they may not use any water, but they want to have a large meter for insurance purposes for instance, um, cabrillo college and c cliff golf course they Basically are using groundwater or they have whales from my understanding if I miss if I miss say something please correct me um, so these Individuals have large meters just for insurance reasons. So it doesn't make sense They don't really fit into this model that we're talking about with customer select residential though So that's our recommendation there Um open enrollment was something that we definitely hear loud and clear We need to have that for our customers Um, what we're recommending is to have that as a rolling plan Right now, you know One of the things that needs to be determined in the second phase is how often is that occur? Does that happen six twelve? So the the goal of this study from my viewpoint was is to narrow this down So just to have a couple of policy options on the table for modeling purposes because if we have too many things to model It gets a little bit Sort of crazy So if I narrow the scope here and sort of understand what are the two or three policy options We want to really understand and evaluate. So that's one we heard open enrollment What does that mean and we want to have a rolling enrollment? So not that everyone calls in at the same time, but different um accounts can call in If i'm going too fast, let me know i'm feel like we've called for this i'm moving relatively at a quick pace um, the other one that we talked about is um Adjustments and when should that occur? You know, do we have um, basically penalties? We talked a bit about, you know, how can we do that with cost of service? For us the the simplest thing is is that if people use more water, they just automatically get bumped into the next plan Um, that basically then reflects the cost of service analysis. It's a clean story. It also helps with administrative cost, too Um credit associated with individuals who then go under their plan There are some savings that the agency does occur from less groundwater extraction associated with electricity and and um Um treatment so we should take that into account What we're recommending is that that credit basically occurs at the end of the year And it's a credit on their bill and they're true up And that analysis of how much that should be will need to be determined But basically tying it to the groundwater production. We did hear comments from people about maybe looking at other things We will look at other options there, but the groundwater is definitely easy to do and it should be attributed to the customers Other considerations is um, what happens if one of the comments we heard at the prior board meetings is You know, my sprinkler system went off. Do I get dinged for the whole year? What if some other things occur medical whatever? So we need to have a variance in appeal process if we're going to roll this out That needs to be very clear and articulated about what are exempt and what are not exempt and how do you sort of approve Your cause so that needs to be sort of evaluated and determined We're just giving you some examples medical devices leak adjustments establishing landscaping. We're not saying That you should give variance for that, but they should be evaluated and the board should direct us on which one Plan selection Customers can make their individual selection if no selection is made Then it's basically based on the prior month's use of that billing cycle. Basically, they'll just automatically be in that Program in that plan and then as basically Then the plan will auto adjust as they actually use more and more water Units of measurements as directed by the board. We're suggesting 50 gallons. And so that's a great input We got and then the billing units will remain in 100 cubic feet or cf. We'll still need to figure that out, but we can do either one So next steps is really what I heard at the last board meeting is the refinement options associated with peak use Is that a 12 month period is how do we find peak first? You know, is it the highest month use? Is it the average of maybe two or three months? So those things that we can model and evaluate and see what customer impacts are associated with that Second one is is when do you roll off that peak? Is it a year? Is it six months? So again, those are things that we can model and those are very concrete Things especially with the database if the if directed by the board And then basically develop rates and impacts. So that would be the next step of the study if desired by the board And that's my presentation I don't know if there's any questions or oh, I'm sure there will be questions Well, I just want to make clear so the things that you would want if we decide to proceed The things you want us to decide is like one how to define peak use and then How long these plans should run before they can change them are those the two main ones now? Yes And yeah, okay, that's those are to me the two major policy drivers of this and then typically people use less water in the fall winter and more in the spring summer So this you know the I think the analogy with this type of plan is a is a phone, you know mobile phone plan And people don't make more calls and I don't know I don't suspect they make more calls and in any one particular season than another Christmas time. Yeah Maybe maybe or on on vk. Who knows but the So there's that disconnect there. So how to What what's your proposed way of Solving that well, it's this isn't I wouldn't call it a solution I would call it options in the sense of What are the pros and cons of different ways of doing it? And so some of the things that we will be exact we we may discover for instance And this is how hypothetical but because we haven't done the analysis But is that you may see a situation where certain customers may see a significant increase in the bill such as people who renting the house For the summertime and they're not there in the wintertime or secondary homes Those individuals may see a significant increase and then other customers may see a decrease But the decrease may be only Let's say 50 cents or a dollar while someone else may see a hundred dollar increase and and so while it may be fair and equitable to do that Is it while it might be defensible? Excuse me to do that. Is it fair to do that? And that's where you know the board's input would need to be put in And so there's some nuances there where we need to understand what what do we think is fair and while all these options I'll be presenting you will be defensible There's you know fairness is sort of where I'll need your input Gotcha, would it would it be possible to have a plan that has a you know fall winter use and a spring summer use like Where you just I don't know what what it would be whether it'd be, you know twice the use in the summer spring summer As we get more and more individualized to the seasons it becomes more and more similar to your current rate structure So that's one of the caveats to think about and and I think once we do the analysis and we show you If we do the analysis I should say You know, then you'll see you could see this but More and more your your like your current rate structure you could say is a plan But it's each month You use it and you you're in the tiers and that's what you pay and then you decide which plan you roll off and on So you're not tied to your historical use What what I anticipate is we go through this modeling process and we start actually assigning First it will start with a finance plan and then we start assigning actual Numbers to these plans and dollar amounts, etc I think that's going to bring up a number of other policy decisions that have to be made along the way So I I see this as kind of an ongoing process as we start to model it and get more information Any other questions Yeah, I was wondering who was going to develop that The rate plan that to figure out. I mean big question I have is how could we Keep a stable income so that we could particularly budget for a year Right, and that that's actually our next step So I think what we'll be doing is we'll be agendizing that for our finance committee meeting next week And we'll be talking about what our next steps are and how we move forward So Go ahead or one of the options is one of the Is one option going to be looking at the the fixed Rate being let's say 60 percent and then Monthly just changing according to your use as We're already doing but it's Flipped I think the plan that we've been looking at in terms of customer select is that entire plan is fixed Right, and then we were going to be looking at that model in conjunction with our tiered rate model Which would be a low fixed charge and then the tiered volumetric charge Is it possible to look at If we just made it fixed let's say 60 percent and Or 70 percent whatever it is and any rate consultant difference would be Yeah, any rate consultant should be able to do that Just as one of the yeah, so we can compare Like, you know, we're looking at winter water use and summer water use and of course I came from the sewer business So we only looked at winter water use And it was typically um winter and spring And usually it's fall and Summer where you have more water use And so I'm just wondering, you know, it's going to jump up. So What's the difference Yeah, so any rate consultant should be able to do that analysis Should be able to create a model that can look at different scenarios associated with a fixed charge And and the swing between fixed and variable We haven't included that option that you're talking about it's been thought about before the And maybe the board wants to look at that but though if if you go, let's say 70 fixed Which which leslie would love because your income is is fairly fixed It the the and they all have pluses and minuses, but um, then Everybody even the low water users are paying that high Are higher fixed thing and so that's the drawback to that model certainly been looked at and it would be in linement With the way our fees are and our fixed costs and our operational costs, but um because of that Factor that you know, the low users wouldn't they would be You know in the category with everybody with that 70 fixed fee and Not as encouraging on generally in general on conservation. Yeah, I realize that I just I mean if it was only a $10 difference and this is easier to do I mean, that's That's the only reason I would even ask I wouldn't consider it to be a choice, but just a comparison There's some input about peak Um No, I'm giving some input Let's open up to the public hearing than that. Okay. I have one question first though, which is about defensibility Uh, you know, we have gone from the 100 cubic feet, you know 758 750 gallon town to about seven gallons So people are really paying for just almost exactly what they're using now and we are intending to go to this Much bigger units. So if you're using you know, 2.1 units and yet you're getting charged for four Isn't that a prop to a team Problem for us that you know, someone could point out and say but I'm I use 2.1 But you're charging me for four units It could be but that's why you've got a very you're talking about very narrow Yes fans, I mean the broad of the band the worst that problem is You know the band goes from two to four as is being proposed So you could be using 2.1 and you're being charged for four So I'm wondering but you could also use 3.9 You're getting charged. I mean realistically you're probably getting charged for three Yeah, okay And I think the customer select recommendation that sanjay had made was that um that Credit at the end of the year Was for your unused So that would be the defense then right. Yes. All right. That's a good point All right, let's open it up anyone who wishes to address us on this item. This is your time Thank you. Becky Steinbrunner. I I have some questions The first one has to do with I remember hearing this plan first explained to the rate advisory committee And there was some staff concern. I think it was miss flock actually that was very concerned about the credit part of this whole picture if the district could really support Um providing credits for people who had over essentially overpaid more than their plan So I would like to know how that would be factored in and if that staff concern has been addressed I think it's a good concern My second question is When how often does the district reevaluate the actual cost of service and the cost to produce this The water In light of the monterey bay power consortium coming in and and saying that the rates are going to be lowered And that is probably one of the district's largest expenses power Um, how often does the district reevaluate its cost for Establishing rate bases and the cost of providing the service And to that end, um I I don't know if the district is still buying water or receiving water from central water district But last month you were and a substantial amount and their cost that they charge you Is substantially lower than what you charge your customers for it So I think it needs to be that needs to be addressed Because then essentially the cost of the water that you're providing your customers is lower Then what it would cost you to do but that needs to be handled fairly and equitably and then um the last Um question is regarding career college I seem to remember in some public records act request information at the lower campus that the newer part of the campus is on Your district or there were some questions in the literature about water demand offsets and if they would have to Um meet those requirements. They seemed surprised by them So I would like that point clarified about how much if any of the career colleges on the district Thank you very much anyone else You know what I closed the public input You wish to address any of these I was just going to say that anytime you have A rate change those have to be evaluated really carefully for what the actual costs are I mean, that's the whole idea. It's it's a not-for-profit organization and and so the and it has to be done fairly And also even though power is a large part of the bill It doesn't we still only have a as you said a three percent variability and that's where that's one of the things that varies In fact, as was mentioned the fixed costs are 97 percent, so We may get water from central a little bit cheaper than pumping it out of the ground. I doubt it but Even if you did it's it's down in the you know pennies range so And we actually do We evaluate our costs every year because that's when we do our budget every year because we look at everything we're spending money on So things do change from one year to the next If something goes up something else has to go down to keep it flat Either that or we have to go about and redo our rates again Which we try not to do very frequently, but we do it every few years as far as the One thing he wanted to have us give guidance on if we're going to pursue this is defining peak use and I Look those two and just my first take was that just one month might not be A good idea to define peak use that may be an average of two or three months would be more reasonable But I wanted to throw it open Because we need to come up with guidance too. Well, I think partly it's the individual peak use and then the district white For defining their I guess if the range between the peaks let's say from winter to summer is 50 gallons Let's say per person then you could see what It should be I'm talking about giving Using defining a peak use like it's always going to usually going to be in the summertime. So just defining that by A couple month average versus just one month I don't know. We had also I think talked a little bit about A variance that would allow somebody after a few months of reducing their water use To drop back down to a lower program So there were a number of options. I think that we were considering well if so I The logic is that if if If we can't serve people Because there's too much demand Then we have to increase our system size in some way And we have to so our system is sized to to meet that that peak use So, you know taking that to the absurd You know if everybody were to use their most water During the same time then we'd have to have a Extremely large Capacity, you know to serve that doesn't happen thankfully But it It probably happens a bit with the way things are phased and like you say in the summer People were irrigating so I guess practically tom, I agree with you that, you know The peak use isn't just any one instant, but That there should be some If if possible, there should be some way of accounting for for the strain on the system Mm-hmm more than just a few month average of what they're using So I was just thinking that you know, you just might have somebody randomly have a one month That was a way out of line or something Well, how would that happen? Well leek is something we talked about. Well, that'd be a variance. Okay. That's true. So but if We'll say like no a summer full of Kids home from college Right fill up a swimming pool swimming pool and junk like that too. I mean because this district is primarily So far customer Residential customers mainly and so that's why we have such an extreme peak Whether he's ours is a residential peaking. So I think taking the three month taking three months isn't a bad idea but To average it out, but Even just having two months as the period is kind of nice because that means if you have a leak That's not going to be a two month thing That'll be one month a leak in the next month. They'll be back to normal and similarly for We sometimes do see leaks that cross two months That's why our three months or four months leak adjustment policy allows us to adjust Two month period. Yeah, but still a lot of these extraordinary things are you know one time events We would still need to have a leak adjustment policy in effect. Yeah, of course, of course So let me see if I'm understanding this properly So let's say a customer I'm going to use gallons instead of units Uses a hundred gallons 11 months out of the year and 500 gallons one month What's what's fair in terms of their rates? And where there's no leaks involved. This is just their choice to Irrigate say during that one month It you know, so the system has to be The system has to be designed to meet the 500 gallon right. Yeah, so you know I understand that if you then take that same customer and Divide that 500 into three months, you know 700 divided by three, which is about 233 Gallons, but the system still has to be able to meet that 500 So I I see what you're saying. Yeah And it could be that you know When they hit that 500 it could be that we have a policy that after three months of going back to 100 or two months of going back to 100 they can apply for a variance showing that That our typical use is Much lower than what we saw that one month whether that one month was irrigation or whether it was unintentional What what I like about this is there's And what I don't like also Is there's a there's a there is an awareness of the customer About water use when they select their plan and So that that can be a great thing because they with awareness because comes You know Appreciation of the value of the resource But it it could also be the pitfall of this whole thing if People all are going what happened, you know, well, they're certainly going to become aware of their peaking Um I have a hunch a number of our customers don't realize how much more water they use in the summer than they do in the winter um, I think this type of program would Point that out to them rather significantly and may may change behaviors as a result. I don't know And and there is the issue This peaking behavior is both for the district a cost I mean if you look at the number of wells we have the size of the wells number pipes We have the size of the pipes the tanks the dot dot dot almost all of our infrastructure is based on the peak use And so it's a real cost and so it is charging people according to how much they're contributing to that peak Is a sensible thing and that's the focus on capacity right right and the other bit We are by doing this plan. We're losing some of our conservation focus If you go from 2.1 units to 2.3 units now you pay for that difference with this plan You won't pay it. It'll it'll be the same cost so there's not this this impetus to keep moving you down and You know by by putting you into this upper category if you go over That that is going to encourage you to keep your summer use down, which is is the most The area where people can do the easiest work to save water is summer use I mean most of it just you know thrown out on the front yaw upon and So I think that's something we want to keep quick. It's a balance here You know, we don't want to penalize them so you know, they're out there with pitchforks and it's unfair but yet Some amount of penalization of you know summer use is a good thing because that is water that people could easily save in general and So I think we want to keep some of that So I think these ideas about you know, some amount of the peak use would carry over for some number of months Um until it starts down again somehow Uh is a good thing because that's going to encourage people to you know, not go crazy in the summer with their hose Well, and if if our open enrollment period were Say january, um, then if you do he hit peak months in in july august You're really not looking at that long a period before you can select Down again a lower plan again Um, it's not like you're having to pay 11 months at the peak use I mean you're talking with a six month It was if our enrollment period was in january And you just paid your lower plan lower plan and then all of a sudden in july you were to jump up Then if you didn't appeal a variance, you'd only be paying that peak through The latter half of the year before in january you could select a low plan again Right, but we also talked about maybe having a shorter period than a year. Yeah, that was the other thing we need six months Or no, she was talking about a year She's talking about a year Just that that you would only be happening to pay more if you got bumped up into in the summer Yeah, but we were originally Talking about well do we want to have those Ability to switch plans yearly or less time when in particular if we're going to go to this You know different people do it at different times of the year Then you would want to have some explicit thing She's talking about an accidental thing if you don't buy calendar year and your peak uses in the summer Then you'd only get bumped up for the last half of the year and that's true But if we want to do this rolling period then I think it needs to be some explicit period like Six months or three months or four months or whatever So I think these policy decisions are something that's going to need to be brought back to the board As the as this rate plan develops levels and the details I mean, I think I can see it Call it for a change on the leak adjustment a whole lot of A lot of our policies that are already established so it's step by step So, I mean do we need to come to some kind of Decision guidance just if you had any particular feedback that you wanted to provide at this point At this point is just accept the report. I think at our last meeting you you provided Guidance that you would like us to go ahead and pursue this alongside our tiered rate structure To see how it develops Yeah, so you're not making a hard and fast decision to a ghost customer select at this point I would like to see considered The plan Not being a set Amount for the entire year but being a different amount for winter and summer. So the like plan a is say Two to four Let me go back to get gallons hundred to let's say a hundred to hundred fifty gallons during the the fall winter and three hundred gallons Um during the spring summer Rather than it just be either one fifty or three hundred For the entire year You know the benefit of that I just thought of it was just that people have to think about it twice a year And think how much do I really need? Yeah, or if I take my lawn out, maybe I don't need to go for the 300 Maybe I can go for the 200 or whatever But you're planning to talk about you kind of automatically get more water in the summer, right? Yeah Disadvantaged That allows people to waste it if they want And then remember we're talking about capacity peak capacity And that's always in the summer We're providing that ability to have that That's something that Taj computes every year is what you know, what's our peak day and how much is it? But you're paying for peak capacity during the winter when there isn't any strain on the system right so Well only if you elect for a higher A higher amount You pre-select that I mean this is it is Tending to be weak on conservation and the ability to Impose the peak capacity is a potential conservation tool for you know keeping water use in line with you know A more uniform basis But how that how that will work. I don't the best way for it to work for our district. I don't know right now Could could we have automatic bumping and then allowing allowing them to opt to the lower A lower package in the fall or winter I'm not sure like I'm just thinking if if we're going to allow people and rolling it all different times Which is practical because new customers, etc I want to enroll and let's If it's not for a full year period if it's for a half year period I want to enroll and in the spring Yeah, marching september my plan then for summer peak and then pick a different plan and In the fall for my fall winter Can I ask I'm just I'm just saying I think you've got a point I mean that's one problem with this rolling thing is that then everyone's year is slightly different and I think this If we're going to have this rolling it makes sense because having having this happen in january means Everyone would be calling in the district in january to change and I I suspect that we will get a portion of our customers that will monitor their Bills and call in during an open enrollment period and then we're going to have a portion of our customers that do not That just accept that large portion Just just accept that peak and go with it. I and what that and what that breaks out to be I Remains to be seen. No, I had one other question. I'm sorry Is it defensible to have winter water rates and summer water rates in one year and just say in the winter? This is the rate per gallon, but in the summer it's a higher rate because of The cost for peaking Yeah, so in order to it's sort of what's the story or rationality behind it So if our story or rationality is is that we're talking about capacity You know that capacity is there all year round doesn't matter if it's winter or summer You built the system for this day and if people don't use it. It's idle capacity. It's called Now you can have rates that are go winter and summer. There are people who do that So you can have winter and summer rates, but then the story is less about capacity So it's sort of, you know, where do we what's our logic with a rate structure? What's the rationality behind it? What is the logic for winter summer? Usually winter and summer rates are associated with different sources of supply Atcha It's the one. I mean you could argue right now that you do have summer summer and winter rates by the tiers because People in the winter time tend to be in the lower tiers And in the summer time tend to be in the higher tiers So thus you see people's rates their bills change between winter and summer So one could argue that you do have a winter and summer rate With your tiered rate structure But again, that's a choice of theirs. Correct. You can certainly have flat usage in which case You'd have the same usage winter and summer and therefore the same correct It's only for the higher correct usage that you have higher rates before those who have outdoor water use Yeah I said one other thing I wanted to just bring up and and that is that I know this arbitrarily we're looking at one zero to two three to four, but There it may be Worth having even narrower ones like maybe I don't know what I don't know what the 50 gallon per 50 gallon per person per day equates to about two units a month per person That's why we selected the two unit increments. Okay. All right. That's good then I think we reasoned that we probably wouldn't have a half a person. Yeah, that's easy for people to compute I just think when we it's going to take a lot of education And I think people are going to want to know They're going to need to know what their peak use is and what their whole pattern look like over the year to make a decision And so I think that's probably not hard to do They can just look at the graph on their bill for one thing If we think shows a year's worth of usage, but I think that's a real opportunity for people to really think about their usage Okay, yeah, like I think you're right president Daniels devils in the details so if there's if there's a plan that once I see the numbers that Seems fair seems defensible and I'll be based on the numbers in part, you know, it's if like Somebody ends up paying a hundred thousand dollars for water. I don't think that's Fair or defensible You know unless it's where you know way But you know and Do the Increments of increase of the cost of the plans and going from the zero to two to three to four Do they those have to be equal increments? No, we wouldn't make a me I always thought we could have a cheaper kind of baseline right for people who are low. Okay. Good. Yeah I mean the concept here is is that we would have difference of cost And her in the higher plans like font one for instance is a supplemental supply cost That would be in the higher plans Okay, so the cost per gallon does go up I think it's a good plan to keep looking into myself. Yeah, I'd like to see it flip To to see more details on it. Um, and the zero to the two unit increments Is that just arbitrary you said it was based on 50 gallons per person per day assuming one person in a household Uses about two units a month. So two people in a household four units a month 30 days Wish that works out nicely. Yeah accidental Okay, I think one thing that's going to help is rather than bringing Like this report has all kinds of this is impossible and we could do this we could not do that And if we could break this down into Individual decisions that we need to make If you look at the whole big thing and everything is an option we could change this and change that and Then we'll never reach decisions because it's so complex that we could change this But what effect does that have over there and so if we can narrow this down into you know for example How long is the recovery rate? So once you once you bump up, how long do you go to before you come back down? So that's why I was saying there's only my viewpoint. There's two you have That which would need to be modeled and to determine the consequences There's a lot more than that there's The ones you've mentioned are there if you look through the report lots of things are very fuzzy of all we could do this Or we could do that or we could do the other thing and those are options too. And so I think we to make decisions Effectively rather than look at all the possible things that we could do We need to look at you know, we need to make a decision about this one thing And what do you think is the right thing for this thing and I think What Sanjay is kind of getting at is in order to model it He needed to know If we were doing narrow plans or wide plans and many plans or few plans Once he has that information, which I think has been isolated He can at least model it and then once we have those numbers then we'll be making You still need to know you still need to the policy about overages And you still need to know the policy about rebates You need to I mean there all these different other things are Unspecified right they are but would it make sense to go ahead in a stepwise fashion and and Take these two big factors and what we're looking at is coming back. What I understand is then Do it like a preliminary run. It's not the final but it's to give us give you more Okay, you know what let's let's stop here and you know or go further and we can Knock that down kind of like we did conservation plus. I mean it was a similar thing You saw it and you go, okay, let's evolve it again. Let's let's move that I think that's kind of the process You're considering Yeah, I think once we once we're able to get some rates to attach to this and we can start modeling some customer behaviors We can look at customer a and they do this and customer b and they do this And what steps do or put policies that we do we need to put in place that will Define those bills that they're receiving and and the variances that we're going to allow under those programs but until we actually Know what rates we're looking at and what specific customer types are going to encounter like you can have a customer that's Low all year round And we they actually may see their bill go down because more of this capacity is now being picked up By our peak users So you may see a demographic of customer whose rates go down considerably Um, you may see a customer who has low winter and high summer You may see a customer that has low summer and high winter And what do those customers bills look like and what policies do we need to play it put in place to manage Those specific incidences So you said that you don't want to do too many runs because it's too complicated What's a reasonable number of runs? um Reasonable You know, I think um 10 or 12 I mean, it depends on higher than I thought you were gonna say I mean, it really depends on you know, it's not so much for us if it's complicated It's more about time and in process and digestion. Yeah, you know, you know, because you have only limited amount of time Right, right. You don't have we can't meet every day So, I mean, so we can make you know, we can make a model that's sophisticated enough that can look at You know, all kinds of scenarios. It's more about Process and sort of managing it and making sure we don't you know turn blue to the the face, you know And there's the the the things that you need is white white number Wide ranges How the width the width narrow yeah, we yeah, I mean we're all wide and then How do we define people we don't have to decide that today. I mean that's that's the next step Right. So the next so, you know, some of the guiding principles that we discovered or we went through is that we should focus on a single family The next step we just discussed is that we should have many Narrow plans we've talked about narrow being two units or 50 gallons. That's right We can change and that can be refined and changing the model. That's that'll be an input. That's not necessarily a big deal We talked about that if you go over your plan, you would go into the next plan So that's that overage We talked about a credit. It would occur at the end of the year that would be the Basically the cost associated with pumping and treatment And so the individual get a credit associated with that And sort of from a modeling perspective, there's a lot of policies like the variants and the peels and you know But from a modeling perspective, we don't know who had a leak or who doesn't have a leak Right when we look at the raw data of the customer class of your individual accounts But what we need to understand is is well, what do we define as peak? Is it the hot? Is it that one month? Is it an average of two months to three months and again the model will have the ability to change that Ability to look at different peaking and we'll look at some options and make a recommendation And then the second one is is when does someone? Um, sort of roll off the peak And again, we'll look at the data and we'll examine it and then we'll come up with a rationality and a logic of why So there's really just a few things That's my question is so when you come up with something that would be a typical rate And then how would it affect the rate if you did A one month peak versus a two or three month peak average and then how would that rate change? You know if how would that work if you had them come off after three months correct? All right That's what and then we're going to show you customer impacts because ultimately the rates the bills Don't really matter. I mean they do matter But what really matters more is how much did that person change? So what we would do is look at a representative year So let's just say 2017 and let's just say hypothetically toni 17 repeats itself In exactly the same way except not people have customer select So we know they're bills for 2017 Then we calculate what this bill would be And then we can look at the difference in the bill and then I can tell you These are how many people will see a five dollar increase ten dollars who will see a decrease And who are those customers? So I disagree with the base assumption That it's repeatable because I think by putting customers select me I know but I disagree with it and it will change behavior It will change behavior. And so it's non-stationary So I don't think I don't think we should try and get it too fine. Okay, because It's going to change but you know ballpark Just I think it's worth exploring to see whether You know, it's more defensible fair And that it's financially stable. So I I'd support going the next step but I don't think we should fool ourselves into thinking that whatever you do is Going to actually be what happens. I 100% agree with you if if I predicted exactly what would be happening I always joke. I wouldn't be here. I'd be in Hawaii right now or or somewhere else. I mean, or maybe in Santa Cruz Permanently, but there are a lot of details and complexities. For example In in on page 108. He prevent presented five separate Plans there's plan a b c d e 0 to 2 3 to 4 5 to 6 and then plan e is greater than 8 and Each of the plans You might think would have a fixed cost. So if you go with plan a you're paying one cost b is a different cost But the problem with plan e the biggest one exactly is that if someone is using nine units and someone is using a hundred units If there's a fixed cost one person is going to get Screwed. Well, I I think that he was just showing for example plans a b c d and e I don't think we're stopping at plan e. Well, then you may have to go up to double d or right. They'll be plan f Yeah, we might not have letters Alphanumeric yeah, there's you're in plan Whatever that increment or just drop it just put them on a completely different schedule of it's Such a wide variation in volume, right? So you're playing again by the unit, right? Yeah, somehow just goes back to that. I agree I mean the board's definitely breaking new ground here. There's no other water agency that does this and I think I think it was said the devils in the details. So as we take a step There'll be 10 more questions even you know, we've talked about well if you bump up into a plan You know, that'll make you more aware and you want to use less it will but there's also You know the loss aversion concept where if you get out there and now you're paying for it Well, I want to use it. So maybe it increases you so these could be unintended consequences, isn't it it in Dears a good discussion if we got go with this plan that will be surprises. We can bet on that We do we need to the consequences. We need to accept the report. So I was going to move that we accept the report We've definitely provided feedback Got that Yeah, there's no no scarcity of that Okay, all in favor accepting the report I posed That's unanimous Yes, we're a very shy board. We just have no ideas. Thank you for your good work. I mean, this is really interesting and groundbreaking. So Okay, 6.5 main break road repair Um, yes, this is for adopting plans and specs and calling for bids to repair um seven areas that have been damaged by a main breaks the um The road significant damage. So Pretty simple Any questions questions by the public If there's no question by the public, I'll move that we approve both resolutions. Okay. I'll second roll call please Dr. Lathar. Yes, Dr. LaHue. Yes, Dr. Jaffe. Yes, Dr. Christensen. Yes, yes Thank you And we go to 6 6 which is a draft policy for the standing committees Yeah, so the strap policy about two years ago. We started the standing committees and we just wanted to Bring better decision making transparency and value to the customers. So We put these two committees together and they certainly shown prove their worth and so now we're coming back with some Draft policy for the board to consider And it's shown in the attachment there is really Where it's shown and and You know, we go through Type and composition. So two board members up to two public members. I think is what the board Requested I would say that We would probably want to say it could be also more than two for certain committees I know like for the rate committee. It's an ad hoc committee, but we have more so I would insert that caveat in there But that's that's one item looked at each year to make sure we're we're on track sometimes You know, we may See things we want to change and then like committee member terms We have two years for the board members. I would add there again could be Continuously renewed. I think that was the intent and then two years for the public members with the option of a two-year renewal the board may want to Modify that or not, but that's just a something we put out there to start This is typical of another agency or two that we looked at. So we kind of Use that as a template. So open to suggestions or whatever here questions suggestion Questions I have a couple of questions on page 130 under Committee member appointments you mentioned as you said the board of directors will review this each December, which is our policy up till now But on our next page you say the term for directors is two years. So that doesn't make sense to review things Yeah, that may not be right. We were trying to figure out if if different things were moving at different times If whether that would be needed. So maybe it should be two years I see your point. We couldn't quite If one committee starting different time, do we need to look at it? Maybe not. Maybe it should be two just two if you're going to go with two Yeah, I think they need to agree with each other. So I'm gonna mark two or one. I saw that Well, I thought actually the way I understood that was also that to review how the To do an annual review of how the committee was functioning and what changes needed to be made in mid-year or mid-term Yeah, I think it yeah, I think it was more should be more in alignment, but we It it could be that you could do that you could take that route. Um, but It should be as the you know committees Term out or whatever the two year whatever you whatever you make that if two years is what you want So, yeah, I I agree and where I saw that where was that exactly? Well, one is under homepage 130 understanding a committee member appointments that first Since after their mentions, okay review every year. Yeah, right and the next is the the next page under committee member terms Okay. Yeah, it goes to yeah. Yeah I think because yeah that first one if you went with two years where we'd change the page on page 130 to two. Yeah And then I had I had um on the meeting protocol the second paragraph At the very bottom it says If the in the absence of the chairperson the vice chairperson shall perform the duties of the chairperson But in the second line it says they may elect a vice chairperson. I think if you're going to say Yeah, I think it should just be shallow like the vice chairperson. Okay, just so that you You either if you if they're going to fill in and there's not one there that just seems weird Got it. I agree Another question is on page 130 at the bottom there You mentioned this three meetings in a row or six in a calendar year And of course for example finance meets four times a year. So six in a year would mean I don't admit a little more Yeah, uh I don't know what the what the intent is there for that Well, the intent is if you're absent a lot The president or the chair and the vice chair have the right to to Say you're not serious about this. So maybe I just want to say that that'd be fine. That's what I'm thinking. Yeah, maybe we should simplify it. Yeah Yeah, okay, okay, maybe come back with a way to do attendance and other factors if the board, you know, jaren. Okay, okay Okay and the renewable two years for the public A two-year term renewable for two more years Um, I don't think we should limit Okay, only two years. Okay. I think the idea was it's not limited It's just that the idea was that the person could come That person could still apply again, but you opened it up for applications again Okay, and there's no I think that was the idea. I don't think there's a term. We can reappoint it But it's just so you don't they just don't go on forever without right. No, I agree allowing other public members I'll make that clear though because I could see that could be confusing but you I bet you'll use correct and that was the intent This may need to come back with a little yeah, we can bring it back And there's so many things Bring it back put it on consent. I think we can capture everything and pull it if it's not correct Okay, so let me just make sure I so Two years for board members continuous renew the same thing for the public members except after a two-year renewal We'd bring it back Open it to the public. We have a process. We talked about there. We know that was very important to the board and then You will elect a a chair and a vice chair We'll get as far as the the chair and the vice chair can just decide if They think the person's not performing up to speed To let them go. Okay Okay, and I think that captures What you're asking Another question on page 131 under protocol You mentioned Directors not members of a committee may have tend as observers What what legally is an observer? I mean you can you have to sit there and not say anything or I don't know what for board members. You mean? Yeah. Yeah, it's um, you mr. Boss who can probably wait you can't participate in the decisions Yeah, but you could do public comment for you give me comments, but you can't participate in the decision Okay, so you maybe that's you may attend as if you were a member of the public. Yeah, and I think right mr. Boss, correct me. Correct. I think it's only public comment during oral communications And then can are you allowed to talk during the the rest of the meeting? When on what an item comes up is brown actor allows anybody to talk during any item When public comment solicited you don't participate as a member Okay, but just like any other member of the public can talk on any item. Okay. That's why I think that word is unclear And okay say that you attend as if you were a public A member of the public. Okay. Mr. Boss was a way to word that Yeah, I should have him look at this. That was not my understanding, but thank you Okay Anyone in the public wish to address us on this item? Thank you. Becky Steinbruner of aptas um I really appreciate your having the members of the community involved in your policy making and and advisory committees And I I want to urge you to use the wonderful What's on tap newsletter that goes out to everybody already and really? You know put put these positions and and what the committees are doing On the front page so that your customers see that a lot of people look at that Good idea And also the monthly e-blast that your district sends out those go to a lot of people And also don't overlook the use of radio a lot of people listen to radio very few people take a newspaper anymore Maybe the good times You know one of those that people pick up for free, but very few people take newspapers unfortunately anymore But listen to the radio And then under meeting protocol. Thank you for the discussion about the Brown Act and I think I'm urging any of your advisory committee members to attend one of mr. Bossos excellent workshops that I know he puts on here from time to time would Would be a good adjunct to being involved in in these advisory committees. Thank you Anyone else? I also notice that we don't mention here that the public members have to be district in the district or district voters or district customers or I thought we did state they have to be customers Is it? Yeah, do we say that I didn't see any district customer interested in serving on a standing committee is Okay I wasn't the intent all right Any other comments or about this Someone want to make a motion that we Approved this with all these changes we've made Or do we bring it back maybe at them? Okay, just put on consent That's fine. There's enough changes that yeah, I think it's worth not just I think it's worth doing that way Well, is that a motion? Sure, I'll move that we bring it back at the Next meeting with the With the changes I'll second that On favor I post that passes unanimously So now we go to I think it's uh We're in communications Thank you. Becky Steinbruner I thought it was interesting in my neighborhood when some people did vegetation clearing that I saw what was a very odd looking connection to a two inch pipe metal pipe It seemed active and there was black poly pipe running up the hill and When I had the time to stop and look into it It was clear it was not connected with the residence next door at 911 redwood So I turned it into your district and and I want to thank you for taking such rapid And very thorough action Um, there was a workman out there, you know within a couple of days and now everything is gone The pipe is gone The metal pipe is gone the old metal pipe that was there that had been cut is gone The black poly pipe going up the hill to who knows where is gone And I want to thank you for taking such quick action And so I have to ask why That quick action has not been taken on a similar What I think is questionable Water service connection with that remains within the aptos village project I know that the one that was on granite way That has been discussed here many times Seems to have gone away at least it's under dirt or something, but there remains one next to test door of construction trailer And it does not appear to be metered and there is no bad flow so I did respond to miss flock and ask that I printed out the email. I didn't print out in in its entirety I thought I had sent it to your board as well, but it's not included as late communication So I will resend it So it becomes part of your communication officially, but I have copies of it Unfortunately, the library seemed to cut off the bottom end of it But it captured the gist of what I'm talking with you about right now Is why why is there a disparity in the rapidity of action? And my final question is what was that pipe On redwood drive all about If I could get an answer, I would appreciate that. Thank you very much. Thank you Okay, I think we're done. Thank you everyone Okay See you next week at 445 Um in that room Take care by the clock. I thought it was That's the last I heard