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Indian Wells Valley

Water District

Board of Directors Meeting

August 13, 2018

BOARD OF DIRECTORS INDIAN WELLS VALLEY WATER DISTRICT

REGULAR BOARD MEETING

AGENDA

MONDAY, AUGUST 13, 2018 - 6:00 P.M.

BOARD OF DIRECTORS’ HEARING ROOM 500 W. RIDGECREST BLVD., RIDGECREST

(In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in this meeting, please contact Rose Koch at (760) 384-5502. Requests must be made as early as possible and at least one full business day before the start of the meeting. Pursuant to Government Code section 54957.5, any materials relating to an open session item on this agenda, distributed to the Board of Directors after the distribution of the agenda packet, will be made available for public inspection at the time of distribution at the following location: Indian Wells Valley Water District, 500 W. Ridgecrest Blvd., Ridgecrest, CA). 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. POSTING OF AGENDA DECLARATION 5. CONFLICT OF INTEREST DECLARATION 6. PUBLIC QUESTIONS AND COMMENTS

(THIS PORTION OF THE MEETING IS RESERVED FOR PERSONS DESIRING TO ADDRESS THE BOARD ON ANY MATTER NOT ON THE AGENDA AND OVER WHICH THE BOARD HAS JURISDICTION. HOWEVER, NO ACTION MAY BE TAKEN BY THE BOARD OF DIRECTORS ON ANY ITEM NOT APPEARING ON THE AGENDA. NON-AGENDA SPEAKERS ARE ASKED TO LIMIT THEIR PRESENTATION TO FIVE MINUTES. PUBLIC QUESTIONS AND COMMENTS ON ITEMS LISTED ON THE AGENDA WILL BE ACCEPTED AT ANY TIME THE ITEM IS BROUGHT FORTH FOR CONSIDERATION BY THE BOARD. WHEN YOU ARE RECOGNIZED BY THE CHAIRPERSON, PLEASE STATE YOUR NAME AND ADDRESS FOR THE RECORD).

7. PRESENTATION: BUDGET BASED RATES

Description: Stantec will present information regarding Budget Based rates. 8. CURRENT BUSINESS/COMMITTEE REPORTS A. Consent Calendar

Description: Approval of Board Meeting Minutes and Accounts Payable Disbursements. 1. Approval of Minutes:

a. July 9, 2018 Regular Board Meeting b. July 31, 2018 Special Board Meeting Workshop

2. Approval of Accounts Payable Disbursements B. Plant and Equipment Committee

1. Vehicle Purchase Replacement: Three District Vehicles Description: Board consideration to replace three District Vehicles.

Committee recommends the following: Board approve the purchase of three vehicles (two F150’s and one F250 Stakebed) from low bidder Keiff & Sons in the amount of $74,400.00.

C. Indian Wells Valley Groundwater Authority (IWVGA)

Description: Report and discussion regarding the July 19, 2018 board meeting of the Indian Wells Valley Groundwater Authority and August 2, 2018 meetings of the Technical Advisory (TAC) and Policy Advisory (PAC) Committees. Including, Board discussion and consideration of issues of importance requiring action by the Indian Wells Valley Groundwater Authority (Authority). Next meeting is scheduled for August 16, 2018.

D. General Manager and Staff Update (The Board will consider and may take action

on the following items): 1. Water Production, New Services, and Personnel Safety Record Description: Water produced from all District wells, report of the new

services installed in the District, and personnel safety record for the preceding month.

2. Public Outreach Description: Public Outreach Report. 3. January 23, 2018 Special Board Workshop Update Description: Update on the item below:

⋅ Update Boardroom with longer microphones and District logo, and provide slideshow of current projects prior to board meetings.

4. July 31, 2018 Special Board Workshop Update

Description: Update on the items below: ⋅ Budget Based Rates - More information will be provided by

Stantec at the August 13, 2018 Regular Board Meeting. ⋅ Brackish Water Feasibility Study – Distribute postcard with a

direct link to the Getting Involved in Groundwater: A Guide to California’s Groundwater Sustainability Plans booklet from

Department of Water Resources to help customers better understand the Groundwater Sustainability Plan (GSP) process.

⋅ Evaporative Cooler Study – Enlist 20 sample points to collect data usage on evaporative coolers in preparation for the upcoming SB606 and AB1668 which will go into effect in 2023.

5. Water Supply Improvement Project Description: Update on the status of this project.

6. Financial Status

Description: Report on the District’s current financial status. 7. Automated Meter Infrastructure (AMI) Project Description: Update on the AMI Project. 8. Conservation Description: Update on the Conservation Program and discussion on

water conservation related items.

9. Arsenic Treatment Facilities Description: Update on the operation and maintenance of the Arsenic

Treatment Facilities.

10. Operations Description: Staff report on operations. 9. BOARD COMMENTS/FUTURE AGENDA ITEMS 10. CLOSED SESSION

A. Pending Litigation Conference with Legal Counsel One Matter (Pursuant to Government Code Section 54956.9(e)(3))

B. Real Property Negotiations Property Located in Inyo County, California (240± acres) APN: 033-110-12 APN: 033-110-19 District Negotiator: Don Zdeba Negotiating with: Coso Generating Company, LLC (Pursuant to Government Code Section 54956.8) C. Real Property Negotiations Property Located in Inyo County, California (240± acres) APN: 033-110-12 APN: 033-110-19 District Negotiator: Don Zdeba Negotiating with: John Summers (Pursuant to Government Code Section 54956.8) D. Real Property Negotiations

Property Located in Inyo County, California (386± acres) APN: 033-490-02 District Negotiator: Don Zdeba Negotiating with: California Department of Transportation (Pursuant to Government Code Section 54956.8)

E. Potential Litigation

Conference with Legal Counsel One Matter (Pursuant to Government Code Section 54956.9(d)(2)) 11. ADJOURNMENT

2018 Water Budget Rate Presentation August 13, 2018

Stantec Consulting & Hildebrand Consulting 1

Indian Wells Valley Water District2018 Water Rate Study

Water Budget RatesPresentationAugust 13, 2018

Agenda

1. Water Budgets Intro

2. Feasibility

3. Advantages / Disadvantages

4. Estimated Costs & Schedule

5. Next Steps



What are Water Budget-Based Rates?• A type of tiered rate structure with

customized water use tiers for eachaccount

• Individualized tier allocations based on:• Indoor water needs

• Number of residents• Average winter consumption

• Outdoor water needs• Landscape area• Evapotranspiration• Plant factor• Irrigation efficiency

• Variances (e.g. medical, large animals)

3

Tier

“Hei

ght”

Tier “Width”

What is needed to create Water Budget rates?

Billing System Requirements• Capable of regularly calculating individual water budgets using dynamic data

Typical Data Requirements• Denizens per home• Landscaped area data

• Estimated based on County data of parcel size• Measured with GIS/aerial photograph• Measured on-site

• Weather data

4



Feasibility of Water Budget Rates at IWVWD1) Legal – allocation-based water rates are explicitly permitted by the CA Water Code

(AB 2882)

2) Billing system capabilities• Current billing system vendor (Springbrook) has never implemented water budget-based rates• Does not offer the service of software customization• Capable of hosting water budget rates if District does all the calculations and regularly reloads the

required data (not recommended)

3) Data Needs• Denizens per account (assumptions can be used to start)• Landscaped area data• Weather data• Customer classes

• Need to properly identify master meter accounts

• Commercial account water requirements (TBD)5

Potential Advantages for IWVWD

1) Revenue stability• Aligning tiers with water needs allows more targeted rates and stable bills

2) Water allocation equity• Allocations based on efficient use of water, measured individually

3) Conservation goals• Water budget can be a powerful communication tool with customers

4) Valuable information for customers• Particularly valuable to irrigation operators

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Potential Disadvantages for IWVWD

1. Perceived inequity• Difficult “paradigm shift” for rate payers• “Losers” will be louder than “winners”

2. Commercial / Industrial accounts• Water needs are hard to measure• Options:

a. Visit each account to ascertain water needs (and keep the budget updated)b. Use historical average use (which rewards historically wasteful water users)c. Don’t use water budget-based rates

3. Cost• (see next slide)

7

Water Budget Based RatesEstimated implementation costs

• Initial implementation costs ($170K – $300K)• Policy decisions & structure development - $100K• Data collection (intern?) - Landscaped area, weather data, commercial accounts - $40k to $170K• Outreach… such as stakeholder meetings & shadow billing - $30K• Customer service training (in-house)

• New billing system (approx. $500K)• On-going data management and billing system updates (5 hours per week?)• ET data purchase (may be free if government weather stations are sufficient)

• On-going Costs (in-house)• Data updates & variance program management (starting at 20 hrs / week and tapering to 2 hrs / week)• Customer service (starting at 20 hours per week and tapering to 2 hours per week)

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Estimated Schedule

Structure development 4 - 6 monthsData collection 1 - 12 monthsShadow billing and outreach 1 - 12 monthsProposition 218 process 2 months________________________________________________Total 7 – 24 months

9

Potential Options (not exhaustive)

A. Adopt current proposed rates and work toward gathering data to develop WaterBudget rates for a later time (2019 or 2020)

B. Postpone current proposed rates and begin to develop Water Budget ratesimmediately

C. Initiate a pilot study for irrigation accounts onlyA. Significantly less expensive… can be done with existing billing systemB. Will give insight into the costs/feasibility of scaling the processes and tools

D. Defer development of Water Budget rates

10



NEXT STEPSRevised Rate Recommendations (September 10th)

Draft and Final Report (TBD)

Final Rate Recommendation (if necessary)

Proposition 218 Notification (following Board direction)

Public Hearing (TBD)

11

Approval of Minutes

MINUTES OF THE REGULAR BOARD MEETING


July 9, 2018

The Regular Meeting of the Board of Directors of the Indian Wells Valley Water District was called to order by President Kicinski at 6:02 p.m. in the Board of Directors Hearing Room, 500 West Ridgecrest Boulevard, Ridgecrest, California. The Pledge of Allegiance was led by Peggy Breeden. DIRECTORS PRESENT: President Ronald R. Kicinski Vice-President Charles D. Griffin Director Charles F. Cordell Director Donald J. Cortichiato DIRECTORS ABSENT: Director Peter E. Brown ALSO PRESENT: Jim Worth, Attorney; Don Zdeba, General Manager; Jason Lillion, Operations Manager; Renee Morquecho, Chief Engineer; Ty Staheli, Chief Financial Officer; Rose Koch, Recording Secretary

AGENDA DECLARATION

Recording Secretary, Rose Koch, reported that the agenda for tonight’s Regular Board Meeting was posted on Friday, July 6, 2018.

CONFLICT OF INTEREST DECLARATION None.

PUBLIC QUESTIONS AND COMMENTS Judie Decker inquired what entity hired the United States Geological Survey (USGS) recently. Don Zdeba responded that the contract is with Kern County.

PRESENTATION: COST OF SERVICE STUDY BY STANTEC Mark Hildebrand (Hildebrand Consulting) and Matt Freiberg (Stantec Consulting) gave a PowerPoint presentation on their Water Rate Recommendation to the Indian Wells Valley Water District. The PowerPoint presentation was included in the Board Packet, but was revised and presented at the meeting. Consultant Hildebrand gave a history of the District’s revenues, total water usage trend, expenses, reserve policies, and capital spending.

CALL TO ORDER

PLEDGE ROLL CALL AGENDA DECLARATION CONFLICT OF INTEREST PUBLIC COMMENTS PRESENTATION: COST OF SERVICE STUDY

1

Three tables showing the District’s financial five-year forecast were presented:

• PayGo with no Rate Increase (not recommended) ⋅ No rate increase

• Cash Only with Rate Increases (not recommended) ⋅ 20% rate increase in 2019, 5% rate increase in 2020, 0%

increase in 2021-2023 • Mix of debt and cash for capital – Smoothed Rates (recommended).

⋅ 3% rate increase for the next five years. The following rate design was recommended: Fixed Charges: Arsenic Compliance Charge. Ready-To-Serve Charge. Fixed Revenue reduced to 60.7% from 66.2% of rate revenue. An Account charge – Per account, based on administrative costs. And, an updated meter equivalency schedule. Commodity Charges: Four Tiers and Water allocation based on meter size for all customers. A Groundwater Sustainability Act (GSA) Pass-Through Charge of $0.08/HCF based on $35 per acre-foot was added to all commodity charges as governed by Proposition 26. The next steps are to approve the issuance of 218 Notification, draft and final report, and public hearing. Stantec recommends the 3% rate increase over the next five years because it is more fair to the customers and equitable. Directors Griffin and Cortichiato commented on budget-based rates and questioned why it was not included in the presentation. Mark Hildebrand responded that the Request for Proposal (RFP) was to look at all options, including budget-based, and to make a recommendation on the option best for the District and its customers. After Board discussion, Stantec will provide a draft report and the cost and time frame to implement a budget-based rate structure. The draft report will be reviewed by the District’s legal counsel and presented at the July 31st, 2018 Board Workshop for Board review, discussion, and possible direction to proceed with Proposition 218 notification.

CONSENT CALENDAR

MOTION: was made by Director Cortichiato and seconded by Director Cordell to approve the Minutes of the June 11, 2018 Regular Board Meeting, and to approve payment of Accounts Payable totaling $498,241.58. Motion was carried. (Ayes: Cordell, Cortichiato, Griffin, Kicinski. Nays: None. Absent: Brown)

PLANT AND EQUIPMENT COMMITTEE Renee Morquecho reported that Best Drilling & Pump has completed the Well 18 Repair and Rehabilitation work. The total Adjusted Contract Amount is $207,100.00. There were three (3) change orders, for a total

CONSENT CALENDAR P & E ACCEPTANCE OF CONTRACT WORK: WELL 18

2

amount of $202,080.00. The Change Orders can be attributed to the addition of work for repairs, as the original contract only specified pulling and videoing the well. The committee recommended the Board accept the Contract Work in the amount of $207,100.00.

MOTION: was made by Vice-President Griffin and seconded by Director Cortichiato to accept the contract work performed by Best Drilling & Pump for Well 18 repair and rehabilitation work in the amount of $207,100.00. Motion was carried. (Ayes: Cordell, Cortichiato, Griffin, Kicinski. Nays: None. Absent: Brown)

Eric Onstott Construction has completed the Trench Patch Replacement work. The original contract amount was $243,034.00. There was one (1) change order, for a total amount of $59,753.80. The Change Order can be attributed to the addition of work to patch additional locations. The committee recommended the Board accept the Contract Work in the amount of $302,787.80.

MOTION: was made by Director Cortichiato and seconded by Vice-President Griffin to accept the contract work performed Eric Onstott Construction for trench patch replacement in the amount of $302,787.80. Motion was carried. (Ayes: Cordell, Cortichiato, Griffin, Kicinski. Nays: None. Absent: Brown)

FINANCE COMMITTEE Ty Staheli reported that staff issued a Request for Proposal (RFP) on April 6, 2018 to identify, select, and implement a proven public sector application to complement the District’s migration to Advanced Metering Infrastructure (AMI) technology. Four proposals were received and reviewed by a selection committee. The committee narrowed the selection to two vendors; AquaHawk and WaterSmart. Both vendors conducted demonstrations of their product for key staff members. Following the demonstrations, the committee evaluated both proposals on functionality, ease-of-use, customization ability, track record, references, and cost. The following table summarizes costs associated with each proposal. AquaHawk Dropcountr Smart Energy WaterSmart & Water Setup $17,000 $0 $39,730 General-$7,500 Online Bill $7,500 Not Stated Included $5,500 Pay Setup Yearly yr 1-$31,480 $15,000/yr $35,640/yr $21,000/yr Yr 2 on-$21,480 Other Optional Modules Unknown Only 3 CSR No cost for text Not included Customization licenses Included messages, Robo- Cost calls, or emails.

Based on those criteria, the selection committee is recommending selection of WaterSmart. The Finance Committee recommended partnering with WaterSmart to implement the customer portal.

ACCEPTANCE OF CONTRACT WORK: TRENCH PATCH REPLACEMENT FINANCE AWARD OF CONTRACT: CUSTOMER PORTAL

3

Director Cortichiato thanked staff for doing a steller job researching, finding who can do the work, following up, and recommending WaterSmart. Vice-President Griffin agreed with Director Cortichiato.

MOTION: was made by Director Cortichiato and seconded by Vice-President Griffin to award the contract for customer portal to low bidder WaterSmart as presented. Motion was carried. (Ayes: Cordell, Cortichiato, Griffin, Kicinski. Nays: None. Absent: Brown)

INDIAN WELLS VALLEY GROUNDWATER AUTHORITY (IWVGA) Don Zdeba provided the draft preliminary IWVGA agenda for Board Members to review and discuss. President Kicinski commented that Board of Directors should continue to ask for a Finance Committee and the preliminary fees before the plan is implemented. Vice-President Griffin questioned the $500,000 from Kern County and how they would be reimbursed. Jim Worth responded that he believes they will be paid back through pumping fees. Vice-President Griffin also questioned the role of the general manager and that their office would be located at the Kern County Public Health Building. President Kicinski commented that it looks like they’re still moving on that item. This is for the Groundwater Authority to decide. Director Cortichiato pointed out that this is around the time when the District will become the general manager of the Groundwater Authority. The Board of Directors agreed by consensus that the Groundwater Authority does not need to hire a general manager at this time. President Kicinski recommended to discuss the role of the Indian Wells Valley Water District with the Groundwater Authority moving forward on the Board Workshop Agenda. President Kicinski also commented that they’re not going to be able to get the information needed through Stetson from the Desert Research Institute (DRI) to conform the grid of the hydrological conceptual model. The District will move ahead with the presentation and may likely be differences between the DRI model and the District’s model. The District attempted to have the models look the same by overlaying the grids. If you do not do that, there is potential for discrepancies. Vice-President Griffin questioned what the model showed. Don Zdeba replied that the results are scheduled to be shown on July 20th at 9:00 a.m. at City Hall. The presentation is still being developed. This item will be placed on the Board Workshop Agenda.

GENERAL MANAGER AND STAFF UPDATE Don Zdeba updated the safety record to 1,273 consecutive days without a recordable injury.

IWVGA GENERAL MANAGER AND STAFF UPDATE SAFETY, PRODUCTION & NEW SERVICES

4

Metered water production at the wells for the month of June was 228,040,000 gallons (699.8 acre-feet). The number the State Water Resources Control Board (SWRCB) is using for comparison is metered water through the distribution system or consumption, and non-revenue water which is water lost to leaks, flushing activities, blow-offs, etc. For the month of June, the number is 200,317,000 gallons (614.7 acre-feet). The conservation results for June were reported to the State Water Resources Control Board (SWRCB) on July 5th. Consumption was down 25% compared to June 2013. The 20% conservation target established by the Board of Directors took effect last June 1st. Since that time, the cumulative result is 20.8%. For the month of June, the District’s reported R-gpcd was 166. This is 6.7% lower than June 2017 (178), 1.2% lower than June 2016 (168), 3.1% higher than June 2015 (141), and 19.8% lower than June 2014 (207). There were six (6) new connections during the month of June resulting in capital facility fees of $30,408.00. There were a total of 69 new connections, totaling $363,170.00, for the 2017-2018 Fiscal year that ended June 30th. Don Zdeba reported that there was no Community Collaborative meeting this month due to the July 4th holiday week. On the District’s Facebook page, articles of interest about local, state and regional water-related issues (including local Groundwater Authority information) were posted almost daily. Depending on the topic, there were several hundred views. Staff updated the Board of Directors on the items pending from the January 23rd, 2018 Special Board Workshop:

Update Boardroom with longer microphones and District logo, and provide slideshow of current projects prior to board meetings. Update: Don Zdeba reported that the fascia boards will be replaced and staff will be working on the electrical wiring.

The Mid-Year Board Workshop is scheduled for July 31, 2018 at 9:00 a.m. in the District’s Board Room. Don Zdeba asked Board Members to send any agenda items to Rose Koch and himself no later than July 23rd. President Kicinski asked for a discussion item on Senate Bill 606 and Assembly Bill 1668, two new bills signed into law that will require urban water providers throughout California to set new permanent water use targets for their service areas by 2022. Renee Morquecho reported on the Water Supply Improvement Project: Well 34: Well 34 is online. On July 16th, Layne will pull the motor and take to Brinthee Electric in Bakersfield for replacement of the lower bearing. This will take about one week. Well 35: With other projects being completed, this will free up staff to begin working on Well 35. Ty Staheli reported that through June Fiscal Year 2018, budget for revenues is $11,430,800 and $11,454,910 has been received. For expenditures there is a budget of $12,655,590 and $11,300,178 has been spent. This is overall positive by approximately $1,379,522.

PUBLIC OUTREACH JANUARY 23, 2018 SPECIAL BD WORKSHOP UPDATE MID-YEAR BOARD WORKSHOP WSIP FINANCIAL STATUS

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Staff will work on finalizing the contract with WaterSmart. Currently, there are 3,800 Automated Meter Infrastructure (AMI) registers installed in the field and will continue to install the remaining 9,000. Ty Staheli reported on the following conservation items:

State Water Resources Control Board (SWRCB) Water Waster Report – For 2018, there were 32 water waste reports received. Thirty two contacts were made. There were four formal Second Notices and two Third Notices with penalties.

Cash for Grass – One hundred and thirty two (132) yards have been completed resulting in removal of 159,121.5 square feet of turf ($159,121.50). There are 28 yards (49,357 square feet) in the process of being converted. There are 36 yards ($80,000) that are pre-approved and are awaiting notice for pre-inspection. There is approximately 14,000 sq. ft. for applications (1) pending. There is $79,522 Cash for Grass funds available from the revised $382,000 budget. Approximately 27.3 acre-feet of water per year will be saved from yards that have been converted.

Jason Lillion reported that Plant 1 treated 19,394,000 gallons and Plant 2 treated 29,324,000 gallons. For the month of June, 14 services were repaired and 27 were replaced. The NO-DES truck made 31 runs and filtered 180,420 gallons. Ninety seven valves were turned.

BOARD COMMENTS/FUTURE AGENDA ITEMS Vice-President Griffin commented on concerns about verification of SkyTEM’s data. With no further Board or Public comments, President Kicinski recessed the meeting and adjourned to Closed Session at 8:20 p.m.

CLOSED SESSION

The meeting was reconvened in Closed Session at 8:25 p.m. The meeting was recalled to Open Session at 8:50 p.m. There was no action taken that would require disclosure under the Brown Act.

ADJOURNMENT

With no further business to come before the Board, the meeting was adjourned at 8:50 p.m.

Respectfully submitted, Rose Koch Recording Secretary

APPROVED:

AMI PROJECT CONSERVATION ARSENIC FACILITIES OPERATIONS BOARD COMMENTS CLOSED SESSION ADJOURNMENT

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1

MINUTES OF THE SPECIAL BOARD MEETING WORKSHOP

BOARD OF DIRECTORS

INDIAN WELLS VALLEY WATER DISTRICT

July 31, 2018

The Special Board Meeting Workshop of the Board of Directors of the

Indian Wells Valley Water District was called to order by President

Kicinski at 9:03 a.m. in the Board of Directors Hearing Room, 500 West

Ridgecrest Boulevard, Ridgecrest, California.

The Pledge of Allegiance was led by Director Cortichiato.

DIRECTORS PRESENT: President Ronald R. Kicinski

Vice-President Charles D. Griffin

Director Peter E. Brown

Director Charles F. Cordell

Director Donald J. Cortichiato

DIRECTORS ABSENT: None.

ALSO PRESENT: Jim Worth, Attorney;

Chuck Krieger, Consulting Engineer;

Don Zdeba, General Manager;

Jason Lillion, Operations Superintendent;

Ty Staheli, Chief Financial Officer;

Renee Morquecho, Chief Engineer;

Lauren Duffy, Recording Secretary

AGENDA DECLARATION

Recording Secretary, Lauren Duffy, reported that the agenda for

today’s Special Board Meeting Workshop was posted on Friday, July 27,

2018.

CONFLICT OF INTEREST DECLARATION

None.

PUBLIC QUESTIONS AND COMMENTS

Public making comments: Sophia Merk commented that the water haulers

station needs a new hose and thanked the Board for doing a wonderful

job. Stan Rajtora asked if there would be time for public comment

after agenda item #7A.

BOARD WORKSHOP

Don Zdeba provided an update on the Cost of Service Study stating that

Stantec provided a draft report to staff, which was reviewed and then

sent to legal counsel. Staff found issues with some of the

methodologies that were used in the report. After a conference call

CALL TO ORDER

PLEDGE

ROLL CALL

AGENDA

DECLARATION

CONFLICT OF

INTEREST

PUBLIC

COMMENTS

BOARD

WORKSHOP

COST OF

SERVICE STUDY

2

with Stantec, it was decided to take a different approach. The

alternatives of the Cost of Service Study will be presented to the

Board at the September Regular Board Meeting. As requested by the

Board, more information regarding budget based rates will be presented

at the August 13, 2018 Regular Board Meeting.

President Kicinski commented that in 2019 the Water District will

chair the Indian Wells Valley Groundwater Authority (IWVGA) and

provide a General Manager. The hope is that the IWVGA can move in a

direction that works for the rate payers and the Water District.

Director Brown added that the IWVGA is on a better trajectory then it

has been due to the IWVGA Board finally having discussions on

solutions (i.e. importing water, brackish water, etc.). Director

Brown clarified the Brackish Water Study is not being funded by the

IWVGA, but by the Indian Wells Valley Water District (IWVWD) and other

agencies.

President Kicinski commented that what the IWVWD does, as a member of

the IWVGA Board, has to benefit the rate payers and the community as a

whole.

Vice-President Griffin voiced concerns on the Water District not

having enough input on the IWVGA Board. The Water District has

continually suggested forming a finance committee, which has yet to be

formed.

President Kicinski referenced a book titled “Getting Involved in

Groundwater: A Guide to California's Groundwater Sustainability Plans”

and suggested the possibility of requesting a large amount of the

books from Department of Water Resources (DWR) and distributing them

to the parcels within the basin.

After discussion, the Board of Directors by consensus agreed to

distribute a postcard with a direct link to the aforementioned book

from DWR in hopes to help public better understand the Groundwater

Sustainability Plan (GSP) process.

Don Zdeba commented the Brackish Water Feasibility Study is a

partnership between Coso Geothermal, Mojave Pistachio, Searles Valley

Minerals (SVM), and IWVWD. With the seed money, the group compiled a

grant application to DWR for Proposition 1 funding. The group was

ultimately awarded $1,084,000. The contract has yet to be signed by

the State thus meaning the grant funding is not yet available, however

the group is moving forward and did support the SkyTEM aerial

geophysical work. As a result of support of SkyTem, a Hydrological

Conceptual Model (HCM) was created. A presentation of the current

state of the HCM took place on July 20, 2018, at Ridgecrest City Hall.

There is still refinement being done and data being added. There are

some issues with quality of driller’s logs, due to lack of detail in

some of the logs. The plan is to digitize the logs and put them into

a database. Future deadlines include the following:

August 17, 2018 – Anything not in the model by this date will

not be included at this time.

September 30, 2018 – Model will be completed.

IWVGA

BRACKISH WATER

FEASIBILITY

STUDY

https://cawaterlibrary.net/document/getting-involved-in-groundwater-a-guide-to-californias-groundwater-sustainability-plans-2/

https://cawaterlibrary.net/document/getting-involved-in-groundwater-a-guide-to-californias-groundwater-sustainability-plans-2/

3

End of October 2018 – Report of the model will be released.

The group is still working through the Water Resources Manager (WRM)

of the IWVGA to obtain access to the Desert Research Institute (DRI)

model framework, which would include grid layers and conductivity

values.

MOTION: was made by Director Cortichiato and seconded by

Vice-president Griffin to appoint Director Brown as primary

representative for the Joint Powers Agreement related to

the Indian Wells Valley Groundwater Authority for a two-

year term. (Ayes: Brown, Cordell, Cortichiato, Griffin,

Kicinski. Nays: None. Abstain: None.) Motion was carried,

unanimously.

MOTION: was made by Director Brown and seconded by

President Kicinski to appointment President Kicinski as

alternate representative for the Joint Powers Agreement

related to the Indian Wells Valley Groundwater Authority

for a two-year term. (Ayes: Brown, Kicinski. Nays:

Cortichiato, Griffin, Cordell. Abstain: None.) With a Vote

of 2-3, motion did not pass.

The Board discussed the benefit of opposing discussions that would be

presented by Director Brown and Vice-president Griffin as primary and

alternate representatives for the Joint Powers Agreement.

MOTION: was made by Director Cortichiato and seconded by

Director Cordell to appoint Vice-President Griffin as

alternate representative for the Joint Powers Agreement

related to the Indian Wells Valley Groundwater Authority

for a two-year term. (Ayes: Cordell, Cortichiato, Griffin,

Kicinski. Nays: Brown. Abstain: None.) Motion was carried.

Director Brown concludes that he does not mind an alternate opinion,

yet asks Vice-President Griffin to discuss thoughts and opinions with

him.

President Kicinski commented that he requested for this item to be on

the agenda to ensure the District is ready for these upcoming laws.

The laws will go into effect in 2023, however the efficiency targets

must be set by 2022.

Don Zdeba added that the new laws will face several issues, some of

which staff has brought to DWR’s attention. Such as California being

such a diverse state in terms of geography and climate and evaporative

coolers being considered as indoor usage. DWR conducted a pilot study

of two users using remote sensing to determine outdoor use. Another

study of 10 users will be conducted, as well as a study with 50 users

in 2019. DWR has suggested if there are agencies interested in taking

part of the future studies to contact Peter Brostrom of DWR. Mr.

Zdeba did contact Mr. Brostrom expressing interest of taking part in

the pilot study. He received a response stating the initial study was

conducted by two vendors, one of which has dropped out, so DWR is re-

doing the studies with the one vendor. Agencies have yet to be

JPA

REPRESENTATIVE

SB 606

(HERTZBERG

AB 1668

(FRIEDMAN)

4

selected for the next two series of studies, including the study of 50

users in 2019.

The Board asked staff to conduct a study to collect data usage on

evaporative coolers in preparation for the upcoming Senate and

Assembly Bills which will go into effect in 2023.

Tyrell Staheli commented that the backhoe the Water District is

looking to replace has over 9,600 hours on it and has had repair on

its boom arm. Staff went out for quotes and received one from

Berchtold, who has a brand new 2018 backhoe in stock for $95,801.20.

Two other vendors did not respond with a quote. Staff is purposing

purchase of the Berchtold backhoe with 4-wheel drive and extended

boom.

MOTION: was made Vice-President Griffin and seconded by

Director Brown to approve the purchase of 2018 backhoe from

Berchtold in the amount of $95,801.20. (Ayes: Brown,

Cordell, Cortichiato, Griffin, Kicinski. Nays: None.

Abstain: None.) Motion was carried, unanimously.

Staff intends to surplus the replaced backhoe.

Workshop was recessed at 11:41 a.m. and re-adjourned at 12:00 p.m.

Director Brown commented that he would like research to be conducted

regarding the feasibility and options of water located beyond the

Southwest Wellfield and the possibility of the IWVGA funding it.

Vice-President Griffin agreed with Director Brown that near water

should be explored and suggested the portion south of Robber’s Roost,

which has had dramatic increases in water levels.

Charles Krieger, Consulting Engineer, adds that the lithology would

still need to be determined, however it would be an investment that

would give the Water District information which it does not currently

have.

Don Zdeba reported on the Water District’s Conservation goals, the

Administration/Personnel/HR goals, and the Long-term Planning goals.

Renee Morquecho reported on the Capital Improvement and Engineering

goals.

Tyrell Staheli reported on the Finance goals.

Jason Lillion reported on the Operations goals.

Director Cortichiato thanked Don Zdeba for his quarterly articles and

manager updates.

President Kicinski thanked staff for all of their hard work.

BOARD COMMENTS/FUTURE AGENDA ITEMS

None.

BACKHOE

PURCHASE

EXPANSION OF

DISTRICT

FACILITIES

GM GOALS AND

PRIORITIES

BOARD GOALS AND

PRIORITIES

BOARD

COMMENTS

5

ADJOURNMENT

With no further business to come before the Board, the workshop was

adjourned by President Kicinski at 12:47 p.m.

Respectfully submitted,

Lauren Duffy

Recording Secretary

APPROVED:

ADJOURNMENT

Committee Reports


WATER MANAGEMENT COMMITTEE

REGULAR MEETING MINUTES

THURSDAY, JULY 26, 2018 – 2:00 P.M.

BOARD ROOM 500 W. RIDGECREST BLVD., RIDGECREST

Attendees: Ron Kicinski, Peter Brown, Don Zdeba, Jason Lillion, Ty Staheli, and Renee Morquecho

1. Call to Order

The meeting was called to order at 2:00 p.m.

2. Committee/Public Comments None.

3. Indian Wells Valley Groundwater Authority (IWVGA)

The Committee discussed the July 19, 2018 IWVGA Regular Board Meeting. The Committee discussed options of reaching more public and suggested that the IWVGA send out a mass mailer to all parcels in the basin describing the Sustainable Groundwater Management Act (SGMA).

4. Hydrological Conceptual Model

Don Zdeba reported on the presentation of the Hydrological Conceptual Model (HCM) in its current state which took place on July 20, 2018. The HCM was developed by Ramboll using data collected from SkyTEM of the Indian Wells Valley (IWV) basin. Cal State University – Sacramento has information from 28 wells that they are digitizing to include into the HCM. The intent is to finalize the model by the end of August and have a formal report by October. Efforts are still ongoing to obtain the architecture, particularly grid layers and hydraulic conductivity values, of the Desert Research Institution (DRI) model.

5. Brackish Water Study Mr. Zdeba reported the Brackish Water Feasibility Study is funded by the four (4) partners, Coso Geothermal Company, Searles Valley Minerals, Indian Wells Valley Water District, and Mojave Pistachios. The project is being funded by seed money in the amount of $370,000. As of the last invoice about 50% of those funds had been spent, most of which was spent on the grant application and development of the data management system and HCM. Work going forward over the new couple months includes: Continue discussions with Coso Geothermal and other stakeholders on potential

locations to drill and install additional groundwater monitoring wells.

Water Management Committee Meeting Thursday, July 26, 2018 – Page 2

Preform TDS mapping and profiling. Access to the base approved for August 6th to conduct sampling for TDS.

Complete downhole geophysical well logging of two or three more monitoring wells.

Continue to support the SkyTEM data collaboration efforts and development of the HCM.

Contract negotiations with Department of Water Resources (DWR) the Desalination group with respect to the Proposition 1 Grant Funding contract.

Initiate the bulk of the feasibility efforts once the brackish groundwater zone has been finalized in the HCM.

6. Future Agenda Items None.

7. Adjournment

The meeting was adjourned at 2:41 p.m.

BOARD OF DIRECTORS


PLANT AND EQUIPMENT COMMITTEE

REGULAR MEETING

REPORT

TUESDAY, AUGUST 7, 2018 – 2:00 PM

BOARD ROOM

500 W. RIDGECREST BLVD., RIDGECREST

Attendees: Don Cortichiato, Chuck Cordell, Jason Lillion, Don Zdeba, Ty Staheli and Travis Reed.

1. Call to Order

The meeting was called to order at 2:01 pm.

2. Committee/Public Comments

None.

3. Vehicle Replacement: Three District Vehicles

Per the Capital Improvement Budget, three trucks will be replaced this fiscal year. Bids were

received and Keiffe & Sons Ford was the low bidder for all trucks. The combined total was

under budget. The Committee recommendation was to purchase the vehicles from Keiffe &

Sons Ford.

4. WSIP Update: Update

Well 34: Staff reported that the lower bearing issue had been remediated and the motor was

re-installed by Layne Christensen on August 2nd, 2018. The sounding tubes were

cleared of oil on August 3rd, 2018. Layne is still pursuing GE for a replacement

motor.

Well 35: Staff has begun preliminary design work on this project.

5. AMI Pilot Project: Update

Staff is finalizing the contract with WaterSmart for the customer portal. Existing meter

registers are still being upgraded at this time and staff plans to ramp up their efforts within the

coming months. Staff has experienced some intermittent reads and is in contact with Neptune

to remediate the problem.

Plant & Equipment Committee

August 7, 2018 – Page 2

6. Arsenic Treatment Facilities: Update

Plant 1 is online. Plant 2 has a small leak in the FE tank wall around the caulk of a bolted

connection and is therefore shut down for repair.

7. Future Agenda Items

None.

8. Adjournment

The meeting was adjourned at 2:20 pm.


FINANCE COMMITTEE REGULAR MEETING

REPORT

TUESDAY, AUGUST 7, 2018 – 3:00 PM

BOARD ROOM 500 W. RIDGECREST BLVD., RIDGECREST

ATTENDEES: Don Cortichiato, Chuck Cordell, Don Zdeba, Ty Staheli, Jason Lillion, and Travis Reed

1. Call to Order

The Finance Committee Meeting was called to order at 3:01 pm.


None

3. Fraud Risk Discussion Description: Discuss potential or actual fraud risks within the organization. None to report.

4. Cost of Service Study Description: Staff update on Cost of Service study. Stantec will be presenting the results of the Cost of Service study at the September 4th Committee Meeting. Stantec will present information on the pros and cons of budget based rate structures at the August 13th Board meeting.

5. Customer Portal Description: Staff update on Customer Portal. Staff is working with legal to review and finalize a contract with WaterSmart Software Inc.

6. Financial Statements July 31, 2018 (preliminary) Description: Presentation to Committee financial reports and a graph depicting current revenue and expense trends compared to budget and previous fiscal year actuals. Estimated year to date revenues as of July 31, 2018 are $1,130,935 and expenses are $857,813, therefore revenues exceeded expenses by $273,122, which exceeds budget by $129,930. Staff presented the following spreadsheets, which compare July 2018 year-to-date actual to budgeted revenues and expenses by category.

Finance Committee Meeting Report August 7, 2018, Page 2

Indian Wells Valley Water District Revenues vs. Expense

Actuals & Budget through July 2018 (Preliminary)

Budget Actuals Δ

Revenues

Total Water Sales 1,191,300 1,082,557 -108,743 Total Water Service Revenue 20,000 22,951 2,951 Total Non-Operating Income 1,000 1,431 431 Capital Contributions 9,800 23,996 14,196 Total Revenues 1,222,100 1,130,935 -91,165

Expenses Water Supply 63,268 34,600 -28,668 Arsenic Treatment Plants 33,342 14,259 -19,083 Transmission & Distribution 140,170 62,071 -78,099 Engineering 43,468 28,612 -14,856 Customer Service 3,669 20,374 16,705 Field Services 32,439 37,943 5,504 General & Administration 269,824 208,901 -60,923 Legislative 7,920 10,859 2,939 Depreciation 289,873 289,873 0 Non-Operating, Interest 92,099 75,832 -16,267 Non-Operating, Miscellaneous 16,581 70,562 53,981 Non-Operating, Conservation 36,131 616 -35,515 Non-Operating, Alternate Water 50,124 3,311 -46,813 Total Expenses 1,078,908 857,813 -221,095

Net Revenue Increase (Decrease) 143,192 273,122 129,930


*Actual Revenues and Expenses are Estimated 7. Accounts Payable Disbursements

Description: Presentation to Committee of Accounts Payable Disbursements reports for Board approval. The Committee recommended approval of accounts payable disbursements totaling $1,076,305.61 as follows: Checks through: 7/1/18 7/15/18 . Prepaid $ 344,171.44 $ 45,132.29 Current 547,207.11 139,794.77 Total $ 891,378.55 $ 184,927.06

8. Future Agenda Items Reminder of Cost of Service Study presentation at the September Finance Committee meeting.

9. Adjournment The Committee adjourned at 3:10 pm.

BOARD OF DIRECTORS


ADMINISTRATION/EXECUTIVE COMMITTEE

MEETING MINUTES

WEDNESDAY, AUGUST 8, 2018 – 3:30 P.M.

BOARD ROOM

500 W. RIDGECREST BLVD., RIDGECREST

Attendees: Chuck Cordell, Ron Kicinski, Don Zdeba, Reneé Morquecho, Ty Staheli, Jason Lillion,

and Rose Koch

1. Call to Order

The meeting was called to order at 3:30 p.m.


None.

3. Draft Agenda for Regular Board Meeting of August 13, 2018

The Committee reviewed the agenda and made no changes.

4. Future Agenda Items

None.

5. Adjournment

The meeting was adjourned at 3:44 p.m.

8.B.1.

Budget

Indian Wells Valley W-ater District 2018-2019 Vehicle Replacement Proposal

Minimum Bid for FlSO X 2

Minimum Bid for F250 Stakebed

Under/(Over)Budg.et

$84,199

$44,047 $30,353

$9,798

Vendor Make Model

Keiff & Sons Ford F150

Jim Charlon Ford F150

Downtown Ford Ford F150

Vendor Make Model

Keiff & Sons Ford F250

Jim Charlon Ford F250

Downtown Ford Ford F250

Vehicle Quote

August 7, 2018

F150 X 2 Year Description

2018 XL Regular Cab, 4X2, 6.5' Bed



F250 Stakebed Year Description

2019 XL Regular Cab, 4X2, 8' Stakebed



Price

$43,474.90

$47,886.00

$46,640.77

Price

$30,067.29

$31,274.51

$32,449.11

Delivery TOTAL

$572.37 $44,047.27

$0.00 $47,886.00

$1,200.00 $47,840.77

Delivery TOTAL

$286.19 $30,353.48

$0.00 $31,274.51

$0.00 $32,449.11

Indian Wells Valley Water District

Truck #437

Make

Model

Year

Features

Mileage

Purchase Price

Repair Costs

Expected Repair Costs

% Repairs/Purchase Price

Ford

F150

2002

Standard pickup truck with toolbox

129,110

$27,273 $11,257

$2,408

50%

Suggested Replacement Features: Standard Ford F-150. The truck will need to be

outfitted with a toolbox if the existing toolbox can't be moved.

---


Truck #609

Make

Model

Year

Features

Mileage

Purchase Price

Repair Costs



Ford

F-150

2006


118,674

$18,846

$20,045

$1,679

115%

Suggested Replacement Features: Standard Ford F-150. The truck will need to be outfitted

with a toolbox if the existing toolbox can 1t be moved.


Truck #428

Make

Model

Year

Features

Mileage

Purchase Price

Repair Costs



Ford

F-150

2008


88,609 $19,132

$8,340

$839 48%

Suggested Replacement Features: Warehouse FlSO will be transferred to Engineering and replaced with a Ford F-250 with Stakebed.

8.D.8.

# of water waste reports

received

# of contacts made (written or verbal)

# of formal warning actions

# of penalties issued

Jan-18 4 4 0 0Feb-18 2 2 0 0Mar-18 0 0 0 0Apr-18 6 6 0 0May-18 9 9 2 0Jun-18 11 11 2 2Jul-18 8 8 1 1

Aug-18Sep-18Oct-18Nov-18Dec-18

SUBTOTAL 2015 378 376 40 10SUBTOTAL 2016 406 399 28 3SUBTOTAL 2017 70 68 10 4SUBTOTAL 2018 40 40 5 3

TOTAL 854 843 78 17TOTAL PENALTIES BILLED

TOTAL PENALTIES COLLECTED

C4G funds still available* $81,554

$382,000* Budget Accounting

($1 = 1 square foot)

Potential Annual Water Savings

(AF)

Savings - Cost to Produce 1 AF

Yards completed 132 159,121.5 27.30 $6,946.00Yards pending 29 49,325.0 8.50 $2,153.00Preapproved apps to stop H2O 35 78,000.0 13.40 $3,406.00Applications Pending 0 14,000.0 2.40 $611.00Total yards inspected 196 $300,447 51.60 $13,115

.Withdrawn applications 88Yards that didn't pass inspection 28

Jan-18 0 Jul-18 0Feb-18 0 Aug-18Mar-18 0 Sep-18Apr-18 0 Oct-18May-18 0 Nov-18Jun-18 0 Dec-18

Total Consulations in 2018 0Total Consultations Currently Scheduled/Packets Sent 0Total Consultation Applications not Processed 0

SWRCB Water Waster Report

XERIC© Ambassador Consultations

Cash for Grass* In January 2016, the State approved $322,000 grant funds for IWVWD Cash for Grass program

$2,200$2,150

The Mission

of the

Indian Wells Valley Water District is to deliver the

highest quality water at the best possible price

while continuing to serve as respectful stewards of the environment.

The Vision

of the

Indian Wells Valley Water District is to provide for

self-sustaining water resources now and for

generations to come.

Board of Directors

indian wells valley water district€¦ · 8/8/2018 · provide slideshow of current projects...

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