Special Board Meeting Packet - Three Valleys Municipal Water District

F. San Gabriel Basin Water Quality Authority (WQA)
Director Kuhn reported that he regrettably accepted the resignation of
Grace Kast, Executive Director effective December 31, 2010. Due to
the current election results (both known and yet to be certified) the
board representation is subject to significant changes. It is anticipated
that efforts will be made by Upper District to absorb WQA into their
operations.
G. MWD Board Report
Director De Jesus informed that the labor negotiations are continuing
with the large union groups. The current agreement is due to expire
December 31, 2010 and is already an extension to the prior
agreement. It is not anticipated that the labor negotiations will be
concluded by the end of calendar year 2010 and that the items on the
table are not being met with a consensus of the Board. It is possible
that the negotiations may have reached an impasse.
Director De Jesus reported that supply and storage related to moving
water from north to south is in good shape. He encouraged everyone
to look at the conditions at Diamond Valley Lake (DVL) as an example.
By year end 2010 it is expected that the levels at DVL will be at 525K
acre-feet. Water is coming from the AG customers that were unable to
utilize it following resolution of the north-south issues and
subsequently MWD was approached to purchase the water.
Director De Jesus acknowledged that the conservation messages
appear to be working – water use is down. The negative to this
however, is that lower usage results in reduction of water sales (driven
by fixed costs). MWD is presently tracking at 1.73 million acre-feet;
their budget was based on 1.95 million acre-feet. MWD staff will be
evaluating where these differences can be made up.
Discussion has taken place at MWD Audit/Finance Committee that
MWD may not be able to hold to the currently adopted 7.5% increase
in CY 2012. Any losses that occur preceding 2012 will be covered by
the MWD rate stabilization fund, however reserves will need to be
replenished. Updates will be shared as they are available.
H. Additional Board Member Activities Report
Director Mendoza informed that he participated in a tour of the
Weymouth Treatment plan with his class from Mt. Sac on Tuesday,
November 16, 2010.
Regular Board Meeting Minutes 11/17/2010
[1] Indicates action anticipated by Board of Directors on this item
[2] Indicates information item; no Board action required
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