VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, October 17, 2005
Time: 2:00 P.M.
Place: Board Room
29300 Valley Center Road
Valley Center, CA 92082
The Valley Center Municipal Water District Board of Directors’ meeting was called to order by President Broomell at 2:00 P.M.
ROLL CALL
Board members present were: Directors Broomell, Polito, Aleshire, Stone and Haskell. Staff members present were: General Manager Arant, General Counsel Cowett, Director of Finance Jeffrey, Director of Operations Hoyle, District Engineer Grabbe, Pumps & Motors Supervisor Stetson, Manager of Accounting Pugh, Consumer Services Supervisor Tilley, Board Secretary Stetson and IT Specialist Rivard. Spectators present were: Messrs. Steinke, Ziegaus, Hoagland, Corum, Pankey, Ross and others.
APPROVAL OF AGENDA
Item Number 9 on the agenda, “Administrative Code Changes Formally Implementing the Process Evaluation Recommendations and Policies Pertaining to Service Jumpers and Sewer Inspections” was withdrawn and will be presented for consideration at a subsequent Board meeting.
EMPLOYEE RECOGNITION
Eric Laventure, Water Systems Technician, and Jim Pugh, Manager of Accounting, were presented with plaques in recognition of achieving completion of the ACWA/JPIA Supervisor Certification Program.
John Stetson was commended for his efforts in obtaining for the District the American Water Works Association California-Nevada Section Energy Award for A Medium Sized Utility. This award recognizes agencies that demonstrate energy conservation programs such as the District’s program developed to test the operational efficiency of motors and to upgrade facilities.
CONSENT CALENDAR
1. Upon motion by Aleshire, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held October 3, 2005
• Audit demand check numbers 105966 through 106130 and wire disbursements for the period July 1 through September 30, 2005
• Board of Director’s request for per diem compensation and reimbursement of expenses
• Report of expense reimbursements per Government Code §53065.5 for the quarter ended September 30, 2005
• Report on the District’s assessed values for Fiscal Year 2005-06
ACTION AGENDA
2. Presentation on the Proposed Meadowood Development by Pardee Homes and Report on San Luis Rey Municipal Water District’s Application for Latent Powers:
General Manager Arant reviewed that the proposed Meadowood development by Pardee Homes is adjacent to the Rainbow Municipal Water District’s service area located east of Interstate 15 and north of Highway 76. Pardee Homes had entered into a pre-annexation agreement with the Rainbow Municipal Water District, but with this water district’s current Board members’ efforts to void the agreement, Pardee began evaluating other options for provision of water and sewer service.
The proposed Meadowood development is within the San Luis Rey Municipal Water District that has submitted an application to the San Diego County Local Agency Formation Commission (LAFCO) to exercise its latent powers for water and wastewater services. This application will prompt a Municipal Service Review by LAFCO which will involve the San Luis Rey M.W.D., Rainbow M.W.D., the Valley Center M.W.D. and other small agencies in the area. Upon completion of the Municipal Service Review process, LAFCO will determine the agency best suited to provide water and sewer service to the development.
Mr. Chuck Corum, Vice President of Community Development for Pardee Homes, addressed the Board providing background information on Pardee Homes which was founded in 1921. Pardee Homes received the San Diego Union Tribune’s “Best Builder” award in 2003 and 2004 and has been recognized by the County of San Diego for its commitment to the community and energy-efficient building practices. Mr. Corum explained that the planned Meadowood development is within the boundaries of the San Luis Rey M.W.D. that has applied to LAFCO to exercise its latent powers to provide water and sewer service and that LAFCO will determine the appropriate agency to provide water and sewer service to the community.
The Meadowood Development is consistent with the County’s 2020 General Plan Update consisting of 390 acres and approximately 1,150 units, both single-family and multi-family homes. Meadowood is part of a 1,000 acre quadrant that will have approximately 3,000 homes under the vision of the County’s 2020 General Plan Update.
Mr. Corum stated that the options for water and sewer service to the Meadowood development are: Rainbow M.W.D., San Luis Rey M.W.D., Valley Center M.W.D. and a County Service Area. Service from Rainbow M.W.D. would require annexation of the property and fulfillment of the pre-annexation agreement by the Rainbow M.W.D. though there is reluctance on the current Board of Directors for such action and community opposition. The San Luis Rey M.W.D., an agricultural and groundwater district seeking to activate its latent powers for water and sewer services, would need to become a member of the San Diego County Water Authority and annex to Metropolitan Water District. Service from the Valley Center M.W.D. would require annexation of the property to the District.
LAFCO will determine the agency best suited to provide water and sewer service to the Meadowood development following its Municipal Services Review and Sphere of Influence studies. The San Luis Rey M.W.D. has been identified as the lead agency for the studies. Mr. Corum noted that the Valley Center M.W.D. is a viable option.
Jack Hoagland, consultant for the San Luis Rey M.W.D., stated that the district consists of approximately 3,000 acres bordered by the Rainbow M.W.D. to the west and north, the Valley Center Municipal Water District to the south and the Pala Tribal lands to the east. Formed in 1958, the San Luis Rey M.W.D. monitors and defends its local water rights, has proactively intervened in legislation and regulations that benefit the San Luis Rey River water rights and quality, and worked with state and federal agencies for environmental regulations to preserve the ability to use local water resources. The District property is at the major highway junction of I-15 and Highway 76 and has been identified for regional commercial and suburban growth with specific projects proposed. Mr. Hoagland reiterated that the proposed Meadowood development is located within the San Luis Rey M.W.D. boundaries.
The Gregory Canyon Landfill is within the boundaries of the San Luis Rey M.W.D. Currently, the proposed landfill is proceeding through the permitting process. The San Luis Rey M.W.D. has two agreements to protect local water resources and provide environmental monitoring of the water quality.
The San Luis Rey M.W.D. has coordinated with land developers and Rainbow M.W.D. to provide water and sewer service to the Meadowood development, however, the current position of Rainbow’s board is to not honor the executed agreements for annexation of the property. As such, the landowners have approached the San Luis Rey M.W.D. to provide the utility services within its purview which resulted in the application to LAFCO to activate its latent powers to provide water and sewer service. A Municipal Service Review and Sphere of Influence Study to be conducted will encompass the Bonsall and Pala hydrologic sub-areas of the San Luis Rey River. It was reiterated that the Valley Center M.W.D., Rainbow M.W.D. and the San Luis Rey M.W.D. will be evaluated so that LAFCO can determine the most reasonable strategy for providing the requested water, wastewater and recycled water services. As part of the evaluation, a questionnaire will be sent to the agencies in the near future.
In response to questions regarding annexation of the San Luis Rey M.W.D. to either Rainbow M.W.D. or the District, Mr. Hoagland explained that a progressive annexation may be pursued which completes the annexation process but allows parcels to defer payment of annexation fees until such time that it initiates development or there is a need for supplemental water. A recommendation from LAFCO as to the agency best suited to provide water and sewer service to Meadowood development could be heard by the LAFCO Commission by mid-2006. The affected agencies would take action to support or oppose the recommendation. A provision of the annexation process is that if 10% of the registered voters protest the action, an election is conducted. Concurrent annexations to the San Diego County Water Authority and the Metropolitan Water District may be pursued.
3. Report on the Recertification of District Customers Participating in Metropolitan’s Interim Agricultural Water Program:
A recertification process of District customers participating in the Metropolitan Water District’s Interim Agricultural Water Program (IAWP) was initiated by staff to verify the qualification of the participants, obtain data on crops, agricultural acreage and customer contact information, as well as provide information on the parameters of the program such as a supply reduction in the event of water cutbacks in exchange for the reduced cost.
Participants in the IAWP received a letter summarizing the program and the required recertification forms in March of 2005. Reminder notices were mailed and phone calls made in the ensuing months to those that had not completed and returned the recertification form. The recertification process resulting in 1,692 accounts being recertified as eligible for Metropolitan’s IAWP with 139 accounts dropped from the program. Metropolitan audits the proper administration of the IAWP and the District has continuously field checked accounts to verify eligibility for participation in the discount program.
Data on the District’s agricultural accounts has been compiled to be used for emergency contact information and the District’s Agricultural Water Management Plan. The data received will be combined with information from the aerial photographs to identify all agricultural property in the District’s service area.
4.
Lower
Moosa
Canyon
Water Reclamation Facility – Request for Budget Adjustment and Approval of Engineering Agreements for a Wastewater Expansion Concept Study and Aeration System Upgrade Design:
District Engineer Grabbe stated that as part of the Lower Moosa Canyon Water Reclamation Facility Waste Discharge Permit Project, the requirements to meet the ultimate wastewater demands and anticipated waste discharge requirements are being evaluated. The groundwater basin capacity and its potential effect on the waste discharge requirements for the reclamation facility are being evaluated by Earth Tech.
A proposal from R.W. Beck has been requested to prepare a concept study to determine the additional facilities needed to meet the anticipated ultimate demands and waste discharge permit requirements of the Lower Moosa Canyon Water Reclamation Facility, and provide engineering design support needed in processing the waste discharge permit update with the Regional Water Quality Control Board. The concept study will also address additional solids dewatering and digestion facilities needed to process sludge from the various proposed satellite wastewater treatment facilities. Additional funding in the amount of $60,000 for this project was requested.
District Engineer Grabbe reported that higher influent wastewater strengths have been experienced at the Moosa Treatment Plant due to water conservation practices resulting in lower dissolved oxygen levels in the aeration tanks. Lower dissolved oxygen levels can be a precursor to plant disruptions and possible violation of discharge standards. An upgrade of the aeration system converting to fine bubble diffusers will greatly improve the oxygen transfer rate and solve the dissolved oxygen issue. A proposal from R.W. Beck to design the aeration system upgrades and prepare plans and specifications has been requested at an estimated cost of $65,000. Construction costs for this project are estimated at $735,000 and a budget appropriation for the construction phase will be requested at a later date.
Funding for the design phase of the waste discharge permit project and aeration system upgrade project will be from the Lower Moosa Canyon Water Reclamation Facility Replacement Fund. Construction of the projects will be from replacement and operating funds with the intent to reimburse the funds from future debt proceeds.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2005-34
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY
CENTER
MUNICIPAL WATER DISTRICT AMENDING THE FISCAL YEAR 2005-06
BUDGET TO APPROPRIATE FUNDS FOR THE WASTEWATER EXPAN-
SION CONCEPT STUDY (13-5653.78) AND TRANSFERRING FUNDS
FROM MOOSA RESERVES FOR DESIGN OF AERATION SYSTEM
UPGRADES (13-5612.78) FOR THE LOWER MOOSA CANYON WATER
RECLAMATION FACILITY AND AWARDING THESE “AS-NEEDED”
ENGINEERING TASK ORDERS TO R.W. BECK
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Proposal for Analysis of the
Valley
Center
Aqueduct Connection No. 1 Zone and Associated System Improvements:
District Engineer Grabbe reviewed that the Valley Center-1 connection to the San Diego County Water Authority aqueduct provides service to the Weaver Reservoir, and the San Gabriel, Lilac-Pala and Hauck Mesa Pump Stations (Zone 1a), and the Lilac Reservoir, Lilac Pump Station and the Bingham Mesa Pump Station (Zone 1b), which are referred to as the VC-1 Zone. In the 2005-06 budget, funds were approved for the design of the Lilac Reservoir Feeder Replacement Project, but the project was put on hold due to submittal of the preliminary design report for development of the Lilac Ranch property. The Lilac Ranch project would cause the relocation of the main distribution lines from the VC-1 connection and have an effect on the design of the Lilac Reservoir Feeder Project. At this time, development of the Lilac Ranch property has been put on hold. An initial evaluation of the Lilac Ranch project revealed a need to study the entire VC-1 Zone and take advantage of the proposed roadway system of the development project for relocation of the District’s facilities. The VC-1 aqueduct connection is near Keys Creek, is subject to flooding and the distribution system to the Lilac Reservoir area makes it difficult to utilize the full capacity of the connection. In addition, the main distribution system piping leaving the connection follows Keys Creek and is difficult to access during the rainy season.
Staff proposed modifying the approved Lilac Reservoir Feeder Project to include an analysis of the VC-1 Zone. A proposal was received from Nolte Engineering to complete the VC-1 Zone analysis. This project would be funded from budgeted funds for the Lilac Reservoir Feeder Replacement Project. Upon completion of the analysis, staff will present the findings to the Board (master plan for the VC-1 Zone) and future project recommendations.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the Board approved reallocation of the existing budgeted funds to redefine the Lilac Reservoir Feeder Project’s scope to include the VC-1 Zone Analysis.
GENERAL COUNSEL’S AGENDA
6. Passage of Assembly Bill 1234:
General Counsel Cowett reported that AB 1234 was signed by Governor Schwarzenegger on October 12th and becomes effective January 1, 2006. This bill imposes ethics training and compensation and reimbursement requirements upon cities, counties and special districts. Local agency officials will be required to receive a minimum two hours of training in general ethics principles and ethics laws every two years.
Best, Best & Krieger has prepared ethics training courses to meet the requirements of AB 1234. General Manager Arant proposed that a class could be held at the District’s office with neighboring agencies also invited. In addition, the ACWA/JPIA will offer an ethics training program at its Conference. General Counsel Cowett noted that certification from the Fair Political Practices Commission and the Attorney General is being pursued by Best, Best & Krieger to conduct the training class. The District’s policy pertaining to Board of Directors’ reimbursement of expenses, etc. will be evaluated and updated, if necessary, to comply with the provisions of AB 1234.
7. Wholesale Electricity Litigation:
General Counsel Cowett reported that a Superior Court Judge has ruled on the Wholesale Electricity Litigation finding that exclusive jurisdiction rests with the Federal Energy Regulatory Commission which will result in the dismissal of the legal action. An appeal of this decision will be filed.
Attorneys’ fees for the Williams Settlement will be distributed as the appeal has been dismissed, and the Reliant Settlement is being processed.
BOARD OF DIRECTORS’ AGENDA
8. Development of Presentations Promoting the ACWA Blueprint for
California
Water, “No Time to Waste”:
Director Aleshire reported he is serving on a committee to coordinate development of approximately 12 to 14 one-half hour presentations on ACWA’s Blueprint for California Water, “No Time to Waste”. The one-half hour segments are planned to be aired on PBS television. Total cost is estimated at $360,000 of which $70,000 has already been committed. Additional funding is expected from ACWA sponsors. Director Aleshire has suggested that preparation of 1 or 2 of the segments be developed at this time with the available funding.
ADJOURNMENT
9. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at
4:12 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary