Notes from the office $3.00 CD
President Danny Johnson opens June 17th, 2019 Lake Don Pedro CSD Monthly Board meeting at 1303 hours, VP Hankemeier and Director Warren absent. Pledge of allegiance.
Public Comment: Wes Barton stated be believed a non-confidential report regarding our new general manager’s employment back ground might be made available for the public, but stated it did not appear to be on the agenda. Barton also questioned who had been made Board Treasurer…. Johnson advised the Treasurer had not yet been appointed and thanked Barton for his comments. Did not mention the confidential nature of our new GM’s employment background.
President Johnson again thanked Pete Kampa for his service to the LDPCSD and welcomed Patrick McGowan as the new GM. Johnson then turned the meeting over to the “two GM’s” as he was unaware of which would be speaking first.
Pete Kampa advised he had no report for the meeting. Kampa stated the board should probably direct the new GM as to how meetings in the future would proceed and suggested an upcoming agenda item to address the matter of setting initial goals. Kampa referenced his past work as a starting point.
Board President Johnson questioned Kampa about the projected grant reimbursements. Kampa said there were two grants in the “hopper” (processing) of which he was aware unless something had happened he did not know of yet ….. Stated both grants having been submitted and accepted around mid-May …. Usually takes 6 weeks, and he expects payment to be made before the first of the fiscal year – a few weeks. Both are from the Department of Water Resources – both focused on the service line replacement project.
($3,000 – $4,000 each for line replacement with 80+ lines replaced during the first round that reportedly WERE NOT LEAKING – information has been rather sketchy since then! (Consider: between $240,000 – $320,000 to tear up subdivision roadways and replace NON LEAKING WATER LINES – how did that lower our massive continuing water loss for both raw and treated water? Simply RAZZLE DAZZLE public with GRANT MONEY DISTRACTIONS FROM REALITY!)
[A FUTURAMA episode phrased an example of grant fraud waste as “DUMP TRUCK LOADS OF FLAMING GRANT MONEY” .,..or something like that LOL!]
Patrick McGowan, new General Manager. Will be meeting with the District’s engineer tomorrow to ascertain the status of the various projects to make sure he was on the same page. Working with the employees who had been very helpful in familiarizing him with district business. McGowan also (apparently) thanked Pete Kampa for his calls and emails. Stated he liked the work and the challenge and believed he would do a good job.
Randy Gilgo, Operations Supervisor: Randy commented that his operations report was as straight forward as it always was. Stated he was unsure where they were with the INTAKE PROJECT – confirmed a failure a couple of weeks ago with the one remaining working pump. (Two pumps at Lake intake.) Cannibalized parts from the inoperative pump to repair the working one. Stated his biggest concern right now was the new PG&E plan of shutting off power during high fire dangers and how to secure another source of power for water operations in case of PG&E shutoff.
Director Emery Ross confirmed the district could go 2-3 days if system was completely filled prior to shutoff but Randy explained everything would have to be 100% filled because transferring from one site to another would not be possible. Randy said even if PG&E turned the power off for two days, then back on for two days we would still be without water due to the high summer water demand (two days would not be enough to fully recharge all water tanks – takes 7-10 days to refill everything.)
Mandatory rationing may be part of the solution.
Ross spoke of configuring his own backup system (evidently for his outside place of use commercial cattle ranch which must be supplied groundwater replacement since outside the water license permitted service boundary of the subdivision) and asked if he could fill a 1,000 gal tank with water from another site that might have water. Board Secretary Syndie Marchesiello commented that would likely be a board decision. Director Ross, again, wanted to know if a customer came to the district compound with a tank could it be filled with water? Randy stated for animals, yes, the district would furnish water for customer tanks at the LDPCSD compound. (Untreated raw water from the lake.)
GM McGowan stated the topic had already been addressed with Pete Kampa and Blackwater Engineering (Jeff Black, District engineer) regarding hazard mitigation plans.
(REM? Kampa and the Tuolumne County Hazard Mitigation agreement?)
Johnson suggested contacting Mariposa County in regards to their emergency mitigation plans.
McGowan questioned whether grants were available for emergency generators? Kampa stated they originally were not but there has been a change in the thinking at the state level and changes may permit obtaining funds for such emergency power generation. Kampa stated mobile generators might be considered. (Mobile vs a permanent installation) Kampa suggested moving forward aggressively on the matter for the future but this summer is out of the question.)
Very likely that power will be shut off during a “RED FLAG WARNING” which could be up to eight days as was the case in the camp fire. Once the warning was lifted all transmission lines would have to be inspected before being re-energized which could mean another week in waiting.)
FUTURE AGENDA ITEM FOR NEXT MONTH AFTER MEETING WITH ENGINEER AND COUNTY OFFICIALS.
1335hrs: VP Dan Hankemeier arrives at meeting.
Danny Johnson asked what were the sizes of the pumps? How much power would be required? A 40HP pump would require approximately 32 KW. Randy stated someone would have to come in and calculate what the power requirements would be.
Kampa stated in Groveland they were using much larger generators. 100kw Maybe $100,000 – $150,000 installed each. Plus fuel tanks. Groveland was going to get 5 units.
Arbolada Drive does have a booster pump and generator setup, so ironically, the smallest area of water service for homes up on the hill (although more outside place of use expanded water service was to be added to the area in other proposed future developments) will be protected from water loss in the event of PG&E shutoff for as long as the reservoir holds water.
WES BARTON commented on the grants being handy but none of that will help us now if PG&E shuts off the power. He suggested perhaps a political remedy might be pursued to stop PG&E from implementing such a policy until districts such as ours had a chance to obtain the necessary emergency support equipment.
Victor Afanasiev questioned the amount of time PG&E would provide prior to shutoff? Ross responded, one hour. Danny Johnson stated the availability of generators may not be too good during an emergency. Johnson brought up the idea of increasing rates and fees again.
CONSENT CALENDAR, pages 5-16. Two May meetings. Hankemeier questioned the lower cost for water in May. Barton stated Hankemeier was absolutely right because the water amount sold for the groundwater wells jumped from 1,900 to the next month of over 4,000.
Board Secretary requested the VP furnish the questioned account number: Hankemeier responded: 01-1-5021-561.
Wes Barton stated we still had the fouled up receivable numbers, intake water imbalance, labor rates from $7,000 up to $11,000, whole bunch of problems…..been ignoring for a long time and we do not have a Treasurer. Barton recommended everyone, including the new GM, read the last two audits to see what makes the LDPCSD “tick” financially, take courses on financial reporting and management, look at the possibility of obtaining an in house financial controller/treasurer, ascertain exactly what cash we have on a daily basis as this has not been done for some time, …Barton said that money will be down to next to nothing real quick, Barton stressed that was our biggest problem…not having a treasurer and a financial controller. (A CPA 50 miles away was not sufficient.)
Director Emery Ross: Page 5: Unrestricted …. Cash brought in is less than spent (possibly a timing mistake in payments)
Wes Barton stated the district is still unaware of its exact financial position which he has commented on for a very long time.
Consent agenda approved unanimously.
Discussion items: Approval of fiscal budget. Kampa provided an overview. One of many policy actions. Spending, financial projections for future, is cash flow adequate? Enough cash for the next six months? A budget can be very tight or more relaxed. Now recommending a preliminary budget due to the change in personnel….must adopt a final budget by September 1st. Kampa again brought up modifying revenue….(RATE AND FEE INCREASES TO CUSTOMERS).
Projected $100,000 short next year already. Kampa suggested from a practical point increasing rates every year with cost of living changes. Should perform another rate study for approximately $50,000. What goes up, down…..plan for new rates and vacant parcels, aka AVAILABILITY FEES on PROPERTY TAXES. Kampa said there were strategies to get rates increased…… perhaps take on more debt for projects, vote YES or NO. Revenue options to be researched for the future. Doesn’t see much in cost cutting options especially with no growth.
GM McGowan stated he was still researching all the information but agreed rate increases would likely be necessary.
LEW’S VIEW: Kampa stating district should budget for contingencies? Wow. Really? How does a SPECIAL DISTRICT budget for the contingency of a 20 year CALIFORNIA SPECIAL DISTRICT ASSOCIATION (CSDA) director spearheading a 20+ year criminal conspiracy to quietly reconfigure the Place of Use boundary for water license 11395? Much less using a DIGITALLY CREATED FAKE WL1135 POU MAP (to replace the “physically existing” official map on file with the SWRCB in Sacramento) in order to provide SUBSIDIZED SPECIAL BENEFIT GROUNDWATER SUBSTITUTION WATER SERVICE TO OWNERS OF LAFCO ANNEXED PROPERTIES (outside the legal POU of residential subdivision) that KAMPA himself had wrongfully set up over twenty years ago when beginning his infamous water career here in California? In other words, how can a district possibly plan for such outrageous criminal activities by those in extremely powerful positions in state wide lobbying organizations supposedly serving a public interest?
Wes Barton commented that if the board of directors wants the public to approve another rate/fee increase and were bringing costs down every year, there would be no problem, however, when the board is a HIGH COST PRODUCER? Our district is now based on the high cost operations of government and granting authorities so your costs will be high – changes the entire way the district operates – that’s where we are now.
Director Ross: Questioned Pete as to trying to have water rates coincide with cost of living allowance? Kampa said no, you could do it every five years though. Johnson suggested the “pain” to customers is reduced when a number of small rate increases are used rather than big ones.
Preliminary budget approved, unanimous.
Kampa asked if the public hearing had been set for public notice….Syndie responded in July.
Page 23: Transfer of funds from LAIF reserves. (LOCAL AGENCY INVESTMENT FUND- I believe) which pays 10 times the return as a regular money market fund.
Kampa advised LAIF was restricted only to requiring board action for withdrawal transfers. Apparently the new GM suggested transferring $500,000 which was not currently in the account – with that figure apparently based on anticipated grant reimbursements. Kampa acknowledged that GM McGowan was placed in an unfair position as he has no experience with the prior financial policies and operations Kampa was handling. Kampa advised the treasurer could make recommendations as to any withdrawals or deposits into that account, (Ooops! We don’t have a treasurer yet!) Kampa suggested another resolution to clarify future LAIF activities. Kampa said board should provide access to the LAIF now (after things even out in July-August) and then later (after grant reimbursements make us financially whole again) establish how LAIF will be utilized thereafter.
Wes Barton thought the $160,000 in the LAIF had certain requirements and suggested the board go back to around the last Proposition 218 to raise rates and check the particulars.
Director Ross asked what the board was now doing regarding the matter?
Short answer: essentially providing GM Patrick McGowan with the authority to withdraw LAIF Funds to cover costs of district operation without the required prior individual board approvals for each withdrawal until grant reimbursements are received.
(When reimbursements are received (deposited?) this pre authorization (temporary access to funds) for GM withdrawal will cease.) What if reimbursements are redirected away from the LAIF? ????
No exact amount of money should be referenced since it is an unknown variable.
Unanimous board approval for temporary access to LAIF account.
Page 24-28: DOLLAR GENERAL DEDICATION OF WORK TO THE DISTRICT
Kampa stated it was a failure on Dollar General’s part. Kampa suggested a note for McGowan: make sure counties do not approve such projects prior to the approval needed from the LDPCSD. (Tuolumne County approved the Dollar General for opening prior to the contract requirements being met according to district.)
SO FOR ONE YEAR FROM JUNE 17, 2019 – any failures are the responsibility of DG.
Easements, maps, cost accounting, maintenance bond to cover the first year.
Board accepts resolution: unanimous. BECOMES FIXED ASSET FOR DISTRICT.
BOARD OF DIRECTORS OVERSIGHT ON NEW GM HEALTH BENEFITS: To be provided immediately upon hiring (July 1st)
Director Ross questioned the availability of any additional coverage for a work related disability for McGowan based on his own (Ross) hardship with a work related permanent disability. Ross said the current agreement would not help him if so injured and board should look at the matter. Emery said there were also limited extra disability insurance policies.
Board: unanimous approval of resolution.
After the vote Pete Kampa spoke of learning experiences and “dynamic board experiences” suggesting Director Emery Ross might expect some policy or discussion to come up on a later agenda regarding this extra disability insurance coverage. Board members agreed it would be discussed on a later agenda.
Johnson continued about meetings – items need to be brought to the GM for meeting agenda preparation.
Resolution approving those for bank access, signatures: Approved unanimous.
End of meeting, June 17, 2019 at 2:29PM
Miscellaneous welcomes and thank yous, small talk, Kampa made a point of stating he had “this guy” picked out a long time ago.
My best to you and yours, Lew