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Water Board
Regular Meeting of
July 12, 2017
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Water Resources
File Packet
WATER BOARD
Bob Smith, Chairman
Jacquie Sullivan
Ken Weir
CITY OF BAKERSFIELD
WATER BOARD
REGULAR MEETING
Wednesday, July 12, 2017 - 2:00 p.m.
Water Resources Building Conference Room
1000 Buena Vista Road, Bakersfield, CA 93311
AGENDA
1, CALL TO ORDER
2. ROLL CALL
3. MINUTES
A. Minutes of the Regular Meeting of June 14, 2017 for approval,
Staff recommends approval of the Minutes of the Regular Water Board
Meeting of June 14, 2017.
4. PUBLIC STATEMENTS
5. REPORTS
A. Kern River & Isabella Reservoir Operations Report
Staff Recommendation; For Board Information
6. HEARINGS
7. DEFERRED BUSINESS
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WATER BOARD
Bob Smith, Chairman
Jacquie Sullivan
Ken Weir
CITY OF BAKERSFIELD
WATER BOARD
REGULAR MEETING
Wednesday, July 12, 2017 - 2:00 p.m.
Water Resources Building Conference Room
1000 Buena Vista Road, Bakersfield, CA 93311
AGENDA
1, CALL TO ORDER
2. ROLL CALL
3. MINUTES
A. Minutes of the Regular Meeting of June 14, 2017 for approval,
Staff recommends approval of the Minutes of the Regular Water Board
Meeting of June 14, 2017.
4. PUBLIC STATEMENTS
5. REPORTS
A. Kern River & Isabella Reservoir Operations Report
Staff Recommendation; For Board Information
6. HEARINGS
7. DEFERRED BUSINESS
Water Board Agenda
July 12, 2017
Page 2
8. NEW BUSINESS
A. Update on TCP Mitigation Project's Impact to Water Rates
Staff Recommendation: For Board Information
9. KERN RIVER LEVEE DISTRICT
10. MISCELLANEOUS
11. WATER BOARD STATEMENTS
12, CLOSED SESSION
A. Conference with Legal Counsel - Existing Litigation
Closed Session pursuant to Government Code Section 54956,9(d)(1),
(One matter)
1, California Water Service Company and City of Bakersfield v,
The Dow Chemical Company, et al
San Bernardino County Superior Court Case No. CIV 470999
13. CLOSED SESSION ACTION
14. ADJOURNMENT
ART CHIANELLO, P.E.
Water Resources Manager
POSTED: July 7, 2017
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ADMINISTRATIVE REPORT
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MEETING DATE: July 12, 2017 AGENDA SECTION: Minutes
ITEM: 3. A.
TO: Bob Smith, Chairman
Jacquie Sullivan, Member
Ken Weir, Member APPROVED
FROM: Art Chianello, Water Resources Manager DEPARTMENT HEAD 9C
DATE: July 6, 2017
SUBJECT: Approval of the Minutes of the Regular Water Board Meeting of June 14, 2017.
RECOMMENDATION:
Staff recommends approval of the Minutes of the Regular Water Board Meeting of
June 14, 2017.
BACKGROUND:
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MINUTES OF THE REGULAR MEETING
OF THE
WATER BOARD - CITY OF BAKERSFIELD
Wednesday, June 14, 2017 - 2:00 p.m.
Water Resources Building Conference Room
1000 Buena Vista Road, Bakersfield, CA 93311
CALL TO ORDER
Chairman Smith called the meeting to order at 2:03 p.m,
2. ROLL CALL
Present: Chairman Smith and Member Weir
Absent: Member Sullivan
3. MINUTES
A. Minutes of the Regular Meeting of April 5, 2017 for approval
Motion by Member Weir to approve the Minutes of the Regular Water
Board Meeting of April 5, 2017. APPROVED with Member Sullivan absent
4. PUBLIC STATEMENTS
Dennis Fox spoke briefly regarding water flow locally and requested to
submit a letter subject titled: Cultural impacts to Water Transfers, for Board
review at their leisure. Letter was copied and distributed to Board
Members. No action taken.
5. REPORTS
A. Kern River & Isabella Reservoir Operations Report
Heather Williams, Hydrographic Supervisor, reviewed the first graph which
showed the trends for the Kern River Natural Flow, Regulated Flow and
Isabella Reservoir Storage. Ms. Williams stated since the last meeting there
has been no significant storm activity to report. As of midnight last night
the current storage at Lake Isabella is 354,017 acre feet, the regulated
outflow is 5,419 cubic feet per second, and inflow into the lake is 4,391
cubic feet per second. Compared to the previous day Lake Isabella
storage has decreased by 2,189 acre feet and inflow into the lake has
also decreased by 784 cubic feet per second. As of this time, it looks like
Lake Isabella storage will remain below the 361,200 acre feet limit for the
remainder of the runoff season. Outflow will stay at 5,400 cubic per
second. Ms. Williams reviewed the Kern River Basin Snowpack
Bakersfield, California, June 14, 2017 - Page 2
5. REPORTS continued
A. Accumulation chart. Ms. Williams stated the snow pack peak reached an
approximate 44 inches of snow water content in March. This equates to
approximately 12 foot of snow depth.
B. Update on Water Usage in the City's Domestic Water Service Area from
June 2016 through May 2017
Jason Meadors, Water Resources Director, stated back in June 2016 the
State regulations allowed water purveyors to self - certify their water
conservation targets based on their water supplies. The City and Cal
Water both adopted a 9% conservation standard target. April 7, 2017, the
Governor ended the Drought State of Emergency for California's water
purveyors, This action did away with the 9% water conservation target for
the City and Cal Water. Even though there is no longer a conservation
target for the City's Domestic Water Service Area, the City is still
recommending that conservation efforts continue due to historically low
groundwater levels and uncertainty of water supplies since 80% of our
water supply comes from groundwater. From June 2016 through May
2017 the City's Domestic Water Service Area saved 7,575 acre feet
compared to 2013 quantities which equates to the water usage by 12,000
residential customers for one year. Mr. Meadors reviewed graphs
regarding Domestic Water Use Comparison and Metered Percent
Reduction. The graphs show the water usage for the City's Domestic
Water Service Area from June 2016 through May 2017 and the monthly
percentage reduction for the service area for the same period compared
to 2013, In May 2017 we conserved 23% from 2013 levels with an average
of 17% for the period June 2016 through May 2017. Our residents have
done a good job at conserving water and continually seem to do so even
though the Governor lifted the drought. Chairman Smith verified the
water usage was total usage and did not account for growth. Mr.
Meadors confirmed Chairman Smith's statement as correct and further
stated the City's Domestic Water Service Area has averaged 1000 more
connections per year in system growth.
6. HEARINGS
A. Hearing to consider adoption of the City's 2015 Urban Water
Management Plan (UWMP)
Art Chianello, Water Resources Manager, explained the background of
the 2015 Urban Water Management Plan (UWMP). The UWMP is a
domestic water planning document. Presented today is the 2015 update,
The last UWMP update was the 2010 Urban Water Management Plan
prepared April 2014. Some of the planning efforts that go into this
document are to look at supplies, demands, population growth, and
actual usage from 2015. This information is then used to make projections
for supply and demand within the domestic service area up to the year
2040. In addition to supply and demand planning, there is also planning
for single and multiple drought years with appropriate conservation action
items depending on the severity of the drought.
Bakersfield, California, June 14, 2017 - Page 3
6. HEARINGS continued
A. The Urban Water Management Plan is a document required by the State
in accordance with the Urban Water Management Planning Act which
was established in 1983. It is required that the UWMP be current in order
for the City to be eligible for any State water grants. Every Urban Water
Purveyor who uses more than 3,000 acre feet of water annually or has
more than 3,000 connections is required to develop an Urban Water
Management Plan.
Chairman Smith opened the public hearing and asked if any one present
was opposed to the plan proposed by staff. Hearing no comment,
Chairman Smith asked if any one present would like to speak in favor of
the plan. Hearing no comment, Chairman Smith closed the public
hearing. Motion was made by Chairman Smith to recommend approval
and forward to full council. Motion was approved with Member Sullivan
absent.
7. DEFERRED BUSINESS
8. NEW BUSINESS
9. KERN RIVER LEVEE DISTRICT
10. MISCELLANEOUS
A. Discussion Regarding City Water Conservation Ordinance
City Manager Mr. Tandy started by pointing out City water usage was on
the decline for many years prior to the drought on a per capita basis. We
know the water usage decline as a result of the inflows at the Wastewater
Treatment Facilities either due to new technology, low flow toilets, or
improved conservation habits. Mr. Tandy stated we should be able to
easily achieve our 9% conservation target long term. The drought helped
more people to be conscious of conservation needs. Our rebates,
conservation kits, and regulations to prevent water waste such as not
watering the pavement should continue but Mr. Tandy suggested there is
no scientific evidence watering only 3 days a week is a conservation
effort. Mr. Tandy recommended dropping the 3 days a week, even /odd
and no watering on Monday. Mr. Tandy stated Cal Water has already
dropped theirs, which Mike Mares, Cal Water District Manager Bakersfield
confirmed to be true. Cal Water is going to honor City Ordinance having
their customers in the City of Bakersfield to follow the same. Kevin
McCusker, Cal Water Government Relations Associate, stated based on a
UCLA Study watering days as currently set up are not an effective water
savings. Mr. Chianello added we want to continue the public awareness
of water conservation in Bakersfield. The long term vision and goal would
be to make water conservation a way of life. On April 7, 2017 almost
simultaneous to the Governor liffing the drought the State came out with
a document Making Water Conservation a California Way of Life.
Bakersfield, California, June 14, 2017 - Page 4
10. MISCELLANEOUS continued
A. Mr. Chianello said there are recommendations in the document we
should follow. Continued and additional public outreach and awareness
campaigns are the key to long -term conservation.
Chairman Smith asked with regards to the 3 day a week watering if any
tickets were issued, Mr. Chianello responded that during the peak we
had some months with 300 calls. Not very many monetary tickets were
issued. During the peak we did go out 5 days a week to the resident's
doors putting door hangers letting residents know of the regulations,
notified them of broken sprinklers, water wasting on the cement, and
watering on the wrong day. Mr. Meadors confirmed for Chairman Smith
the complaints were a mix of leaks and wrong days. Member Weir made
the motion to move with staff's recommendation to amend the ordinance.
Ms. Virginia Gennaro, City Attorney, asked for clarification if Staff is
recommending amending the entire ordinance. Staff confirmed the re-
word of Bakersfield Municipal Code Chapter 14.02.010 A, with subsections
B., C., and D. staying the same. Ms. Gennaro advised she will reword A.
and bring to City Council as an Amended Ordinance. Motion was
approved with Member Sullivan absent.
B. Update on the TCP Mitigation Project
Jason Meadors, Water Resources Director, stated during the Water
Resources Department's budget presentation on June 5, 2017, Council
was shown a few slides and given a brief update on the TCP Mitigation
Project. Staff would like to give the Water Board a more detailed project
status update regarding upcoming expenses and agreements we are
proposing to bring to Council in the upcoming months. TCP is a
contaminate found in ground water in California and in Bakersfield area
detected in our wells. City of Bakersfield have 64 wells on our system and
41 have detections of TCP above the proposed maximum contaminate
level (MCL). MCL is the level the State is proposing to cap the TCP
concentration so if we are above the set level and are delivering that to
our system we are in violation. The MCL is to be finalized by the State any
day now. Once the regulation is adopted by the State, the City will need
to start sampling the domestic water system in January 2018 and if
quarterly averages are above the TCP MCL the City could be in violation
of not attaining the MCL. Mr. Meadors explained what this means for the
City of Bakersfield is that many of the City's wells would need to be
equipped with TCP treatment at the wellhead, which is going to be very
expensive. New water wells may need to be drilled and our operation
and maintenance costs are going to go up after we equip the TCP wells
with wellhead treatment. At the May 10, 2017 meeting City Council
passed an emergency resolution to initiate the TCP Mitigation Project to
allow staff to move forward with contracts and agreements in a timely
fashion to meet all state requirements. Water Resources Department fund
balance is being used to pay for initial design, procurement and
construction costs. The contract approved last council meeting with
Evoqua for approximately 9 million dollars. Provost and Pritchard is the
design engineer for this project with design drawings to 30% for all the
Bakersfield, California, June 14, 2017 - Page 5
10. MISCELLANEOUS continued
B. wells completed to date. Scheduled for the July 28, 2017 City Council
meeting staff plans on bringing forth a contract with W.M, Lyles to begin
the design /build phase of the project. This contract will include scope of
work for 70% of design and will be for approximately 2 million dollars. Upon
completion of the 70% design, staff will have a better estimate of the cost
of the project. City staff is currently working on plans to develop
additional funding to complete the project. As discussed at the
Department Budget presentation to City Council, a rate increase is
necessary in the near future. The State is adopting this MCL and leaving
us a very short window to procure everything, get a contract, and equip
all our well sites. We are in a difficult position but we are doing our best to
meet the deadlines the State has given us.
Mr. Tandy added the State was originally to decide January 2017 with an
implementation a year later. As of June 2017 the State still has not
decided and the implementation date is still set for January 2018. A multi-
million dollar project with a six month window is a tremendous burden on
the Water Resources Department. It is extremely difficult to deal with the
financing because there is going to be a bond issue eventually. Normally
when you go to a bond issue you have absolute final costs, absolute final
total scope of work but in this case it is still evolving and a short time frame
to make it evolve. We are trying through legal efforts to recover some of
these costs through litigation but there is a question to when that will
occur verses when we have to bond. The City of Bakersfield likes more
prudent, long term financial planning. The State has, from what everyone
is saying is the inevitable, with adoption of this regulation coupled with no
extension of the time limit has caused us to work in an unreasonably
compressed time frame. Chairman Smith asked how are we going to
meet 5 -6 month deadline, seems no way to meet. Mr, Tandy stated the
consultant has worked out a theoretical plan under which doing certain
wells coupled with usage lower in the winter and usage ramping up in the
spring /summer will allow the best path to meet this deadline. Ms.
Gennaro clarified in January 2018 if the MCL goes into effect we need to
start testing wells. It is an annual average so that is why the consultant is
going to triage the wells, testing is quarterly so there is a little wiggle room.
Not all of the wells need to be treated with the vessels by January 2018.
Mr. Tandy and Ms. Gennaro agreed the State is not allowing us adequate
time. Between the City of Bakersfield and Cal Water there are 150 wells,
by far the largest in the State. Mr. Mares from Cal Water stated we are in
this together. Member Weir asked about the time frame going forward.
Mr. Meadors stated our consultant Provost and Pritchard has a schedule
whereby we need to equip 10 wells by April 2018 and then 17 wells by
June 2018. Late July 2017 to early August 2017 we would be at 70% design
that would allow the contractor to give us a locked in price as far as what
the construction would cost. It would then be another month or so to be
a 100% design. Contractors at 70% design would be able to start ordering
materials and equipment so when 100% is complete construction can
begin and get the wells online by April 2018. Vessels are being ordered
now due to a long lead -time. Member Weir asked with the 70% design,
can we do an RFQ and go out to bid.
Bakersfield, California, June 14, 2017 - Page 6
10. MISCELLANEOUS continued
B. Mr. Tandy reminded the Emergency Resolution Council passed allows for
the waiver of normal bid requirements, There will be a negotiated
maximum price guarantee contract. Mr. Chianello added the project
delivery method is a design /build. The contractor with the consulting
design engineer as a project manager work as a team to meet the
aggressive deadlines in a timely, efficient fashion. Mr. Tandy discussed
public sector, revenue bond financing and explained a Rate Covenant.
Due to the State's regulation the City Council may have to increase rates
at a level they may not comfortable with.
11. WATER BOARD STATEMENTS
Member Weir stated no comment.
Chairman Smith told Mr. Chianello to keep up the good work. Mr,
Chianello stated he has good staff,
12. CLOSED SESSION - None
13. CLOSED SESSION ACTION - None
14. ADJOURNMENT
Chairman Smith adjourned the meeting at 2:44 p.m.
Bob Smith, Chairman
City of Bakersfield Water Board
Bobbie Zaragoza, CIVIC, Secretary
City of Bakersfield Water Board
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ADMINISTRATIVE REPORT
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MEETING DATE: July 12, 2017 AGENDA SECTION: Reports
ITEM: 5. A.
TO: Bob Smith, Chairman
Jacquie Sullivan, Member
Ken Weir, Member
FROM:
DATE:
SUBJECT:
Art Chianello, Water Resources Manager DEPARTMENT HEAD
July 6, 2017
Kern River & Isabella Reservoir Operations Report
RECOMMENDATION: For Board Information
APPROVED
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BACKGROUND: Report by Heather Williams, Hydrographic Supervisor, on current Kern River flow
and Isabella storage conditions.
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MEETING DATE: July 12, 2017 AGENDA SECTION: New Business
ITEM: 8. A.
TO: Bob Smith, Chairman
Jacquie Sullivan, Member
Ken Weir, Member APPROVED
FROM: Art Chianello, Water Resources Manager DEPARTMENT HEAD 0(C
DATE: July 7, 2017
SUBJECT: Update on TCP Mitigation Project's Impact to Water Rates
RECOMMENDATION: For Board Information
BACKGROUND: During the Water Resources Department's budget presentation on June 5,
2017, as well as previous Water Board meetings and most recently in a City Manager's General
Information Memorandum dated June 30, 2017, City Council was given updates on the TCP
Mitigation Project and upcoming proposed water rate increases to finance the costs.
In early March 2017, the State Water Resources Control Board Division of Drinking Water (DDW)
issued a Notice of Proposed Rulemaking for a new maximum contaminant level (MCL) for the
synthetic organic chemical 1,2,3- trichloropropane (TCP). The anticipated implementation
schedule for the new regulation requires utilities to begin sampling for TCP in drinking water
during the first quarter of 2018. DDW will require that the City comply with the new regulation
within the City's domestic water system area. The City currently estimates that the capital costs
for this mandatory remediation project are currently estimated at $55 million. While the water
enterprise has a modest fund balance that has allowed us to order some of the items with
longer lead times, the City enterprise will need to finance the remainder of the project. This
borrowing will require a substantial user rate increase to fund the capital costs and cover the
increased operating cost for the new wellhead treatment. Staff is currently working with an
outside consultant to conduct a rate study and determine the necessary rate increases in order
to comply with the new state mandates. Staff is diligently working to bring the proposed rate
increase information forward to the Council during the July 19th City Council meeting. Staff will
seek Council approval to distribute Proposition 218 notifications to all the affected ratepayers
within the City's domestic water system.
Staff would like to give the Water Board updated information on the proposed rate increase.
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ADMINISTRATIVE REPORT
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MEETING DATE: July 12, 2017 AGENDA SECTION: Closed Session
ITEM:
TO: Bob Smith, Chairman
Ken Weir, Member
Jacquie Sullivan, Member
FROM: Virginia Gennaro, City Attorney
DATE: July 6, 2017
APPROVED
DEPARTMENT HEAD I//&"
SUBJECT: Conference with Legal Counsel — Existing Litigation
Closed session pursuant to Government Code section 54956.9(d)(1).
(One matters)
California Water Service Company and City of Bakersfield v. The Dow
Chemical Company, et al
San Bernardino County Superior Court Case No. CIV 470999
RECOMMENDATION:
BACKGROUND:
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