Apr 2016 Minutes - Atascadero Mutual Water Company

MINUTES OF REGULAR MEETING
BOARD OF DIRECTORS
ATASCADERO MUTUAL WATER COMPANY
April 13,2016
The meeting convened at the office of Atascadero Mutual Water Company, 5005 El Camino
Real, Atascadero, at 5:30 p.m.. President Frank Platz presiding. Others present were Vice President
Brien Vierra, Directors Leroy Davis, Robert Jones and Jackie Lemo, General Manager John Neil, and
Secretary Cheryl Powers.
PUBLIC COMMENT:
Kathleen Aragon stated that she has learned so much about AMWC and our water resource
through AMWC staff and thanked the Board and General Manager for their patience. She also stated
that she approves of how AMWC is taking care of our water resources and offered her support.
APPROVAL OF MINUTES:
A motion was made and seconded to approve the minutes of the regular meeting of March 9,
2016; the motion carried 4 to 0. Leroy Davis abstained because he was not present at the March
meeting.
The following reports were reviewed:
OPERATIONS REPORT:
The Operations reports were available for review. The Chief Operator provided updates on well
maintenance and reported that the County declared a live stream and shut the Santa Margarita Dam. He
reported that well levels are recovering and stated that we may not need to take NWP water this year.
FINANCIAL REPORT:
The financial reports for February were available for review. Operating revenue is much lower
than projected. Plant expenses are approximately 8% lower than projected, and Administrative expenses
are approximately 9% lower than projected.
CONSERVATION REPORT:
The Conservation Manager's report was available for review. The Conservation Manager
reported on outreach programs and upcoming events, and provided an update on the rebate programs.
The General Manager's Report was available for rev
RAINFALL:
Total rainfall for the period of July 1 - March 31 was 15.26". The long-term average rainfall for
the period of July 1 - March 31 is 15.81".
WELL LEVELS:
Well levels are very good. The static well level in the well field has risen to 19.1' below ground
surface (BGS) on April 1 from 34.4' BGS on March 1.
04/13/16
Minutes - Atascadero Mutual Water Company
NACIMIENTO WATER PROJECT tNWP):
On April 1, the lake was at 35% capacity with 130,685 acre-feet (af) of storage, up from 84,560
af on March 1.
WATER PRODUCTION:
Due to the conservation efforts to comply with the State-mandated 28% reduction in water use
for AMWC, water production was down 33.7% in March compared to March 2013.
SGMA COMPLIANCE:
On March 30, Templeton Community Services District (TCSD) submitted an application to the
Department of Water Resources (DWR) for a basin boundary modification of the Paso Robles Basin,
based on scientific evidence with regard to the Riconada Fault. The DWR found the application
complete, and the public comment period, which ends May 4, 2016, has commenced.
Staff is continuing work in the Atascadero Basin to create a Groundwater Sustainability Agency
(GSA), and has met with other stakeholders to solicit support.
NEXT MEETING DATE AND TIME:
The next regular meeting is scheduled for May 18, 2016, at 5:30 p.m., with the Annual Meeting
of Shareholders following at 6:30 p.m.
WATER USE RATES:
The General Manager summarized the discussions that began in November 2015 for the need to
achieve a net 15% rate adjustment, and he stated that AMWC would run out of reserves within five
years without a rate adjustment and would not be in conformance with NWP bond requirements. He
reported that usage is not anticipated to return to average levels even after the State lifts the mandate,
and he noted additional expenses AMWC is incurring for defense in the Steinbeck quiet title action,
SGMA compliance, and compliance with other State mandates. He explained that replacement of
equipment and capital improvements that are not rehabilitative are being deferred unless they interfere
with operations or are required for compliance.
The General Manager proposed two rate adjustment alternatives, which were discussed at length,
and public comment was heard. A motion was made and seconded to adopt a base rate of $20.00 per
month for 5/8" and 3/4" meters, to adjust the other meter size base rates accordingly, and to not include
any usage in the base rate. Tier 1 will include 1,000 - 10,000 gallons. Tier 2 will include 11,000 25,000 gallons, and the other tiers will remain the same, including the drought rates. The rates will
become effective with the billing period that begins approximately May 15, 2016. The motion carried 5
to 0.
BUDGET. FISCAL YEAR ENDING APRIL 30, 2017:
The General Manager reviewed the budget assumptions and explained that it was assumed the
Board would adopt a rate adjustment. A motion was made and seconded to approve the budget for fiscal
year ending April 30, 2017, per Attachment A of the agenda item; the motion carried 5 to 0.
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04/13/16
Minutes - Atascadero Mutual Water Company
MONTEREY COUNTY DEPARTMENT OF WATER RESOURCES BASIN BOUNDARY
MODIFICATION APPLICATION;
The General Manager explained that the Monterey County Water Resources Agency (MCWRA)
has applied for a basin boundary modification that subdivides the Paso Robles Basin at the Monterey
County line, and MCWRA is required by SOMA to notify jurisdictions and water purveyors in the basin
of any such request. A motion was made and seconded to authorize the General Manager to submit a
letter to MCWRA stating that AMWC does not oppose the jurisdictional basin boundary modification
being proposed by the MCWRA; the motion carried 5 to 0.
APPOINTMENT OF INSPECTORS OF ELECTION FOR ANNUAL MEETING;
Based on staff recommendation, a motion was made and seconded to appoint John Hollenbeck,
Jim Patterson, and Don Vert to act as inspectors of election at the Annual Meeting of Shareholders to be
held at the AMWC business office on May 18, 2016, at 6:30 p.m., and to appoint Don Vert as
Chairperson; the motion carried 5 to 0.
The meeting was adjourned at approximately 6:45 p.m.
APPROVED:
The undersigned directors of the Company approve the foregoins minutes of directors and acknowledge
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