Regis Duncan suggested that this item be rolled over to the next meeting agenda due to the absence of Rob Follett.
Jon Kappeler made the motion to approve this request. Regis Duncan second the motion. All in favor.
Disaster Response Plan
Regis Duncan suggested that this agenda item be rolled over to the next meeting agenda so that Rob Follett can complete a review and make his recommendations for the final draft. Jon Kappeler made the motion to roll this item over to the next meeting agenda. Norman Cione second the motion. All in favor.
Self Evaluation Form
Regis Duncan asked the Board members if they had reviewed the proposed self evaluation form? Jon Kappeler stated his concerns regarding this proposed form stating that we are a small company with one full time employee who reports to the Board at monthly Board meetings as well as time periods between meetings so everyone knows what’s going on and that Frank is doing his job. Jon also stated that if Frank was to complete this form annually as would be required, with high marks that he gives himself for his job performance that this could be turned into a negative. Jon reported that Frank did receive a significant pay raise do to the fact that he had no pay raises for a very long time, and that Frank would ask for bonuses every once in a while, and that Frank should not have to ask for pay raises or bonuses. Jon stated that the Board should consider cost of living increases annually with out requiring Frank to complete a form giving himself high grades to justify any cost of living increases. Frank stated that having to complete another form is just one more thing for him to do and is reasonably certain that this could turn negative. Frank provided the Board members with a list of everything he does to manage the company.
Chris Hannon explained that prior to Frank’s salary increase the Board investigated what the national average pay scale was for people in similar positions like Frank’s and the Board found that Frank’s salary was well below the national average so the adjustment was made. Chris also stated that Frank reports to the Board continuously so everyone knows that Frank is doing his job to the best of his ability. Chris Hannon suggested that it would be appropriate for the Board to issue a letter annually regarding Frank’s performance as they see it. After discussion Jon Kappeler made the motion to remove this item from the agenda. Norman Cione second the motion. All in favor.
Frank provided copies of the letter he received from the attorney that represents the property owner of the proposed development. Frank reported that the proposal offers a 6.33-acre parcel to the company in exchange for the company moving a four-inch water main that runs through the proposed development property at the company’s expense. Frank also stated that the owner is also proposing that all 7-service connections be done at the expense of the company, and that the remaining shares are proposed to be sold back to the company. Frank reported that there is no recorded easement for this pipeline and had been installed by a previous owner back in the late SO ‘s or early 60’ s. Frank also reported that we have two water mains running through the 6.33- acre parcel adjacent to well# 2, and there is no recorded easement for these transmission lines, and again these mains were installed on this property by a previous owner. Frank mentioned that this could possibly be an easement by prescription however litigation to force the company to relocate those mains is a possibility and would add dramatically to the cost of moving those mains should that become necessary. Norman Cione asked what benefit would it be to the company to take title to the 6.33-acre parcel? Frank stated that the property would no longer be subject to development and we would not have to spend $30,000.00 to $40,000.00 moving two water mains. Norman Cione indicated that that area could be considered a riparian area due to the fact that when water levels are high it becomes a wet land and it would be like building homes in a swamp. Frank agreed however Frank reminded the Board that the company is not the final authority on how this land can be used and
developed. Frank stated that San Bernardino County Building and Safety is the final authority on land use. Frank also stated that having two or three septic systems at this location would adversely affect our water quality. Frank suggested that it might be a good idea for the company to take title to that property because this issue would basically go away forever. Frank reported that moving the 4-inch main that runs through the proposed 4.5 acre development is part of our long term capital improvement plan and will need to be done. Chris Hannon agreed but suggested that the water service connections should be paid for by the developer.
Frank agreed stating that he believes that this is written into a settlement agreement that is binding on successors in interest on this property. Frank suggested that we need to avoid litigation, so we need to come up with our response to the proposals set forth by the property owner’s attorney. Frank suggested taking title to the 6.33 acre parcel, moving the 4-inch main at the company’s expense, and the developer shall pay for the service connection fees at a rate of $5,500.00 per service connection due to the fact that new service connections have to exceed I- inch for fire sprinkler systems. Frank also stated that the property owner wants to have the power to approve the location of the new main. Frank stated that this decision would be up to Frank and the Board, and Frank stated that he would choose locations that fall within public utility easements and if the property owner wants to provide and further easements the property owner would do so. Chris Hannon suggested that we should obtain legal advice regarding our proposals, and the fact that no recorded easements exist on these properties. Frank also stated that he does not know whether or not our Will Serve Letter Policy can be applied in this case and needs to have that question answered by a legal advisor. After discussion Jon Kappeler made the motion for Frank to get legal advise regarding these issues from Best Best & Krieger in Riverside. Norman Cione second the motion. All in favor. Frank will make an appointment and report back to the Board. Jon Kappeler stated that the company needs to know how much development our water supplies can handle before the Board starts handing out Will Serve Letters. Frank stated that we have no choice regarding the proposed 7-lot development due to the fact that it is written into a legal settlement agreement.
Frank advised the Board that he would like to get started on this years water main replacement projects on Spruce. Frank stated that he needs to go get the permit for this project and would like to begin as soon as he gets the permit. Jon Kappeler made the motion to approve Frank’s project request. Norman Cione second the motion. All in favor.
Chris Hannon reported talking with George Kenline who is a well-known geologist throughout the State of California and San Bernardino County. Chris reported that Mr. Ken line provided a formula to calculate what our wells have produced historically. Chris Hannon referred to minutes of the last Board meeting where frank advised the Board that prior to developing our long-standing water conservation plan annual demand was 42 to 46 million gallons. As a result of our water conservation efforts and our water main replacement projects total demand for water was less than 25 million gallons in 2015. Chris Hannon reported using the formula that Mr. Kenline provided our water system should be able to handle another 203 service connections and we would probably never .see that happen. Frank reported that water conservation has worked very well here in Angelus Oaks, and our water conservation plan is now connected to our Will Serve Letter Policy and those provisions will be enforced.
Jon Kappeler made the motion to adjourn the meeting. Regis Duncan second the motion. All in favor. Meeting adjourned at 8:05 PM. Next meeting scheduled for Wednesday May 25, 2016, at 6:30PM, at Fire Station 98, 5766 Frontage Road, Angelus Oaks, California.