IWD Board Reviews Budget and Capital Improvement Plans

The Board of Directors of Idyllwild Water District met on Wednesday,
June 12. For a second week they discussed the budget and capital
improvement plans for the coming financial year before approving them.
They also revealed that they are very close to hiring a permanent
General Manager, one who seems “exceptionally qualified.”

Last week the board was presented with a budget and CIP that added up to
a an almost $650,000 deficit, to be covered by the district’s $3 million
reserve fund. They were also told by CFO Hosny Shouman that the CIP is
never competed, but contains items that may be deferred or done
piecemeal. The draft budget presented this week had whittled the deficit
down to just over $177,000. The CIP was $100,000 lighter. Payroll and
retirement for the sewer side is has been reduced by almost $100,000.
This represents delaying hiring a second full time employee and keeping
one full time and one 8 hour a week. The water budget foresees a $16,000
drop in legal expenses ($77,000, less than this year but still more than
the year before), and budgets $160,000 less for general plant expenses,
again less than last year but more than the year before. It also
decreases the payroll by $100,000 to $1,100,000, still 38% above this
year’s $795,000. The new budget was approved. The proposal to replace
the Foster Lake shop building with a new metal structure stayed on the
CIP on a 3-2 vote. This gives the incoming GM the choice putting it off
or doing it without going back to the board.

Interim GM Curt Sauer’s report included a figure of 13% for water loss.
When the board began asking about these higher figures, they learned
that water loss figures are a complex and artful matter. They knew that
the old GM had been attributing water to IFPD that was not being used,
so higher loss figures were expected. Sauer had gone as far as saying,
last month, that the old figures were “fabricated.”

Sauer’s Acting Chief Water Operator, Brian Wilson, was on hand to answer
questions about where water loss numbers come from. Water is metered as
it is pulled from the ground, and as it is sent to treatment and tanks.
“Variance” is the change in level in the tanks. Water used for back
washing at the Waste Water Treatment Plant or the Foster Lake Treatment
Plant, or other internal uses, is also metered, and is part of what is
called “non-water sales,” better thought of as “non-sold-but-used
water.” When leaks are detected the water lost is estimated. Operators
know the difference between a 1 gallon per minute leak and a 100 gallon
per minute leak, assess the flow, and multiply by the time from
detection to repair. This rough estimate leaves out the time a leak
takes to catch someone’s attention. Beyond this comes what board member
Steve Olson suggested would be better called “unaccounted for” water;
undetected leaks. Sauer expressed a willingness to develop a more
readable way of accounting for loss.

Wilson said that he believes the 13% loss figure is really from leaks.
He also noted that after an older meter for internal use was swapped
out, the new one registered a higher steady flow, indicating that the
older meters are not telling the whole story. He said that these types
of meters, costing over $2,000 each, are in stock. Meanwhile the crew
continues to look and listen for leaks.

The board discussed the WWTP replacement project. They still expect the
initial 30% of the engineering to arrive by the 28th. The district will
then have 30 days to review the plans, although this is a request and
not a hard deadline. Sauer suggested hiring another firm, Dudek, to give
a second opinion and help the board critique the work. The $7,000 for
this review is under the ceiling on costs the GM may incur, but Sauer,
mindful that he will not be the position much longer, gave the board the
option of leaving the decision to his replacement. Vice President Peter
Szabadi said that Dudek had given the WWTP committee a “very
interesting” preliminary analysis in consultation, and posed many
questions. The Board agreed Dudek should be retained.

The Strawberry Creek Diversion project was also discussed. The project
was taken off the CIP plan this year because the CEQA compliance will
take at least another year. Sauer presented a more detailed update. He
said he met with the engineer, Eric Howard, who was “very receptive to
continue.” A company called Terra Nova was hired last year for the CEQA,
at an estimated cost of $100,000. To date they have spent $14,000, and
recently invoiced another $7,000. Sauer said that he had worked with
Terra Nova while serving as GM at the Joshua Tree Basin Water District,
that they “can be difficult,” and that Mr. Howard is “frustrated.”
Shouman passed on the information that the previous GM did not like them
either.

Sauer asked the board to consider hiring a different firm to complete
the CEQA, taking the $23,000 loss. He said he had been impressed by the
performance of Dewberry, who are doing the CEQA for the WWTP. “They’ve
been jumping to get things done,” and the Strawberry Creek Diversion “is
a simple project.” After discussion he agreed to keep working with the
current firm and see if he can get them moving.

The GM’s report included a list of things accomplished during the first
eight days with what Sauer called “full staffing.” Director Steve Kunkle
said that this was what he had been waiting for, too see what the
increase in payroll was paying for. The list included, beyond normal
operations, jobs on district assets like repairing and replacing the
water and propane piping to the new office, completing the replacement
of the 6” air pipeline at the WWTP; repairing a chlorine leak at the
Foster Lake plant; upgrading a vehicle with a lumber rack and tool boxes
already in inventory; and preparing for the next section of the Jameson
raw-water pipeline. Several service line leak repairs were noted; one to
the Suburban Propane office, and one on McKinney Lane. There were also
at least four separate training sessions on various parts of the
district’s infrastructure.

The most momentous news of the evening was the report of the committee
reviewing applicants for the position of GM. Board president Charles
Schelly noted that ,since the resumes had been distributed to all
members of the board, the names could be considered public information,
and the subcommittee on hiring could make their report and
recommendation in open session. Vice President Szabadi, who along with
Mitch Davis made the committee, read their report; five applicants were
considered, two were considered exceptional but not fully qualified. One
candidate was deemed “exceptionally qualified,” Bill Rojas, a former IWD
employee who is one of the two contractors Sauer hired part-time to help
him put the district’s house in order.

The report said that Rojas has solid supervisory experience, and during
the last three months has developed an exceptional working relationship
with present staff. We were told that he has promised, if hired, to be a
“working GM,” meaning that he will be involved physically in operations,
a water operator, and not a pencil pusher. Szabadi noted his “good
relations with other districts” and experience with larger projects, and
said he “understands the great challenges in undertaking the WWTP
project.” Rojas, he added, must give two weeks notice at his current
position. In answer to a question from the public, Mr Rojas, who had
slipped into the meeting quietly, said that although he does not now
live in Idyllwild, he will move here if hired.

Schelly had been briefed by legal council and explained the Brown Act
requirements for hiring a new GM. Because this was a “special” meeting
they could not vote to hire Rojas. Next week, the 19th, is the “regular”
meeting date, but because it is a holiday, staff will not be available.
Schelly explained that the board could, however, meet briefly on the
19th, then adjourn the meeting and continue it the next evening,
Thursday the 20th. Members gave wry thanks to Mr Brown for this remedy.
The board continued in closed session, and afterwards Schelly texted the
Crier that “the board interviewed one candidate. There was no action
taken.”

The next meeting will be Wednesday, June 19 at 6 p.m.. It will likely be
adjourned and continued on the 20th.