HomeMy WebLinkAbout2011-04-07 - YLWD-MWDOC-OCWD Ad Hoc Committee Meeting Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
MWDOC AND OCWD AD HOC COMMITTEE MEETING
April 7, 2011
A meeting of the YLWD/MWDOC/OCWD Ad Hoc Committee was called to order at 4:00
p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma
Ave, Placentia CA 92870.
YLWD COMMITTEE MEMBERS YLWD STAFF
Director Michael J. Beverage, Chair Ken Vecchiarelli, General Manager
Director Phil Hawkins
MWDOC COMMITTEE MEMBERS MWDOC STAFF
Director Brett Barbre Kevin Hunt, General Manager
OCWD COMMITTEE MEMBERS OCWD STAFF
(None) Mike Markus, General Manager
1. PUBLIC COMMENTS
None.
2. DISCUSSION ITEMS
2.1. MWDOC Member Agencies Agreement
Mr. Hunt shared that seventeen agencies have executed the agreement to
date. The Municipal Water District of Orange County Board is expected to
vote on the agreement later in April. The draft MWDOC Budget includes
provisions outlined in the agreement including cost sharing for programs
that agencies may opt out of and changing the MWDOC rate structure
incrementally over the next five years toward fixed based pricing and away
from an incremental commodity charge. The Committee discussed the
pros and cons of the agreement and whether agency participation was
required in order to have a say or vote on selecting future MWD board
representatives.
2.2. Impacts of Water Supply Conditions
Mr. Hunt and MWDOC/MWD Director Barbre reported on favorable water
conditions for the State Water Project System and in the Colorado River
Watershed. Mr. Hunt reported on impacts to MWD's revenues from the
current low water sales. The Committee discussed the public's concerns
with mixed messages and lack of consistent information regarding the
status of water availability and reliability following another record wet year.
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2.3. Metropolitan Issues
• Rates and Budget
Mr. Hunt reported on MWD's second year of a two year budget, the
approved rate increase effective January 1, 2012, and their
projected rate increases into the near future. Current cuts due to
lower than expected sales revenue include cuts to the PAYGO
capital improvement plan and funding of future Other Post
Employment Benefits (OPEB).
• Potential Changes of Local Resources Program
Mr. Hunt discussed future direction for MWD and the need for input
from other agencies in support of a stronger role by MWD in local
resource programs and projects, including, for example,
desalinization plants.
• Other Issues
Mr. Hunt reported on other MWD and MWDOC activities with
regional focus.
2.4. Update on Poseidon Project
Mr. Hunt reported the Poseidon projects have hit a lull in activities and
forward progress with San Diego's project dragging a bit. The Committee
discussed the Huntington Beach Desalinization project and whether it
would be of benefit for north county agencies like YLWD to pay for the opt
in program through MWDOC, to have a seat at the negotiations table.
2.5. MWDOC Elected Officials' Forum -April 28, 2011, 7:00-9:00 p.m.
Mr. Hunt encouraged the YLWD Board to participate in the first semi-
annual Elected Officials Forum scheduled April 28, 2011. This event is
included as a term and condition in the MWDOC Member Agencies
Agreement with the intent of a face to face discussion with representatives
from all MWDOC agencies.
2.6. OC-51 Modifications
Mr. Vecchiarelli explained the District's reasoning for abandoning the
project request at this time and thanked Mr. Barbre, Mr. Hunt and the
MWD and MWDOC staff for their efforts in trying to negotiate a cost
effective project. At this time the cost benefit to YLWD does not justify the
capital outlay for the project to move forward. YLWD may reconsider this
project in the future.
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2.7. Expansion of OCWD Groundwater Replenishment System
Mr. Markus reported on recent OCWD Board action to approve a 30
million gallon per day (MGD) expansion of the GWRS plant. The
expected cost for the project is $156M and has a quick payback to the
groundwater producers since it will raise the basin production percentage
(BPP) and allow access to more affordable local water resources and
allow these agencies to purchase less import water which comes at a
higher cost. Mr. Markus reported the project expansion is already
designed and OCWD is prequalifying contractors to bid on the project
construction. The project is expected to be on line by late summer 2014.
Mr. Markus also discussed funding options for this project.
2.8. OCWD Annexation Update
Mr. Markus reported the CEQA documents for the requested annexations
have been scoped out and are expected to be available for public
comments by the first month or two of 2012.
2.9. Future Agenda Items and Staff Tasks
Mr. Markus reported on upcoming action by the OCWD Board of Directors
to approve the replenishment assessment (RA) and BPP for FY 2011/12.
Staff anticipates a higher BPP this year than last, with just a slight
increase in the RA.
3. ADJOURNMENT
3.1. The Committee adjourned at 5:11 p.m. The next regular meeting of the
YLWD/MWDOC/OCWD Ad Hoc Committee will be held May 24, 2011 at
4:00 p.m.
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