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HomeMy WebLinkAbout2013-01-22 - YLWD-MWDOC-OCWD Joint Agency Committee Meeting Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT JOINT COMMITTEE MEETING WITH MWDOC AND OCWD January 22, 2013 A meeting of the YLWD/MWDOC/OCWD Joint Agency Committee was called to order at 4:00 p.m. The meeting was held at the District’s Administrative Office at 1717 East Miraloma Avenue, Placentia CA 92870. YLWD COMMITTEE MEMBERS YLWD STAFF Director Michael J. Beverage Steve Conklin, Acting General Manager Director Gary T. Melton MWDOC COMMITTEE MEMBERS MWDOC STAFF Director Brett Barbre Harvey De La Torre, Principal Analyst OCWD COMMITTEE MEMBER OCWD STAFF Director Roger Yoh Mike Markus, General Manager 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS 2.1. Refund to Tier 2 Contingency Fund Director Barbre reported that Tier 2 Refund checks are being processed, and that a check for $177,000 will be delivered from him to YLWD. He noted that approximately $1 million will remain in the fund for potential unknowns that may occur. 2.2. MET’s 6-Month Financial Review Director Barbre reported that currently Met is seeing higher water sales than projected, resulting in higher revenues than anticipated. Met is looking at options for the use of this revenue, including paying down debt or investing in pay-go for upcoming capital replacement projects. Concerning rate increases, Met is looking to smaller annual rate increases of 3% per year rather than the historical approach of large increases farther apart. 2.3. Poseidon Huntington Beach Options Director Barbre described the status of the Carlsbad Desal Project versus that for Huntington Beach. Carlsbad has all the water sales agreements executed and the construction contract awarded, with construction complete in about 2 years. For HB, no water sales contracts executed, no agreement on which agency may oversee the sales and distribution, and still need to get Coastal Commission approval. However, still expect the deal to ultimately go through. The cost of water produced in HB is 2 expected to be in the range of $1750 to $2200 per AF. The water may be eligible for a Met LRP subsidy of $250/AF. It was noted that there is an article on the HB project in the OC Register today. Director Beverage asked that this item remain as a standing item on future agendas. He noted that YLWD did not sign a letter of interest for the HB project water, due to the distance of YLWD from the project and the need for a financial commitment; however, the District may want to look at that option again when the project is more fully defined. 2.4. YLWD Annexation to OCWD Mr. Markus reported that the annexation is still on schedule for final consideration by the OCWD Board in August 2013. 2.5. YLWD Well Site on OCWD Property Mr. Markus noted that the well site agreement has been approved and signed by both agencies. Mr. Conklin reported that plans are proceeding on the contract with CDM Smith, who will be preparing construction specifications for the drilling of the new well. It was agreed that this item can be removed as a standing item on future meeting agendas. 2.5. Future Agenda Items and Staff Tasks None. 3. ADJOURNMENT 3.1. The Committee adjourned at 5:00 p.m. The next meeting of the YLWD- MWDOC-OCWD Joint Agency Committee will be held Tuesday, March 26, 2013 at 4:00 p.m.