VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, September 19, 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, Aleshire, Stone and Haskell. Director Polito was absent. Staff members present were: General Manager Arant, General Counsel de Sousa, Director of Finance Jeffrey, Director of Operations Hoyle, District Engineer Grabbe, Board Secretary Stetson, Engineering Services Supervisor Gootee, Wastewater Technician Beath, Water Systems Supervisor Bull, Pumps & Motors Supervisor Stetson, Construction & Maintenance Supervisor Lovelady, Manager of Accounting Pugh and IT Specialist Rivard. Spectators present were: Mr. Hilbig, Mr. and Mrs. Olson, and Representatives of the Orchard Run Development improvement project: Messrs. Richardson, Ruby, Oven and Younis.
AUDIENCE COMMENTS/QUESTIONS
1. Mr. Wayne Hilbig’s (Alti Corporation) Request for Sewer Service –
Woods
Valley
Treatment Plant Expansion:
Mr. Wayne Hilbig of Alti Corporation at 27705 Valley Center Road addressed the Board stating that he is the owner of 57 acres adjacent to the Woods Valley Ranch development and is approximately 700 feet from the treatment plant. Mr. Hilbig stated that he had participated in the funding of environmental studies for the Woods Valley Ranch Treatment Plant’s expansion in anticipation of receiving sewer service. Mr. Hilbig asked for consideration or a variance for his property’s inclusion (approximately 100 EDUs) in the treatment plant’s expansion project for the Orchard Run Development. He expressed that waiting for the next expansion project to obtain sewer service is not acceptable.
General Manager Arant explained that the Woods Valley Ranch Treatment Plant was built to facilitate future expansion projects as the plant is sized for an ultimate treatment capacity of 225,000 gpd. The initial phase of the Woods Valley Ranch Treatment Plant is sized to serve only the Woods Valley Ranch Development. To have added additional surrounding property to the initial phase for sewer service would have necessitated initiating a new environmental and county land use permit process evaluation to amend the Major Use Permit for the Woods Valley Ranch project. Such an evaluation to amend the Major Use Permit would have delayed the Woods Valley Project by 18-24 months. An expansion of the Woods Valley Ranch Treatment Plant is currently being pursued for the Orchard Run Project as the proponents of this development have obtained the necessary permits from the County and its Major Use Permit as well as a permit from the Regional Water Quality Control Board. Mr. Hilbig emphasized that it is not his intention and he would not ask that D.R. Horton (Orchard Run Project) delay its proposed expansion project of the Woods Valley Ranch Treatment Plant, but asked that the Board require that the expansion project include surrounding properties. Staff clarified that such a requirement for additional flows would require amendments to the environmental documentation and Major Use Permit that the proponents have obtained for the Orchard Run Project and would significantly delay the expansion project.
Mrs. Barbara Olson, owner of property on Valley Center Road and Charlan Road that for development under the GP 2020 land use designation (both commercial and multiple dwelling) will need sewer service for its use. Mrs. Olson said she had been under the impression that the Woods Valley Ranch Treatment Plant’s expansion would provide them with sewer service. Mrs. Olson asked that Orchard Run amend its Major Use Permit to allow surrounding properties the opportunity to receive sewer service. Mrs. Olson noted that she is one of the property owners who indicated an interest in sewer service from the District’s letter of inquiry and provided the $1,000 deposit.
A total of 34 property owners did respond favorably (provided deposit) to an inquiry as to interest in receiving sewer service from those that can reasonably be served from an expanded Woods Valley Treatment Plant. General Manager Arant explained that the letter sent to property owners was to determine the level of interest in an expansion of the treatment plant, however, it was not implied that the properties could hook up to the treatment plant. Serving those properties through a second expansion project to the Woods Valley Ranch Treatment Plant will be pursued. A viable project for the second expansion will determine if it is cost effective for the interested property owners. Factors involved in an expansion project of the Woods Valley Ranch Treatment Plant include facility improvements at the treatment plant as well as collection systems, seasonal storage and disposal capacity.
CONSENT CALENDAR
2. Upon motion by Aleshire, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held September 6, 2005
• Audit demand check numbers 105497 through 105778
• Annual report of properties with deferral of water availability charges per Administrative Code Section 165.2(d)3
• Report of Professional and Consulting Agreements and contracts for FY 2004-05
ACTION AGENDA
3. Status Report on ACWA-JPIA’s Supervisor Certification Program:
District staff’s participation in the ACWA-JPIA Supervisor Certification Program which involves completion of 18 required and 9 elective courses was reviewed. Courses cover safety regulations and practices, customer service, discrimination and harassment, emergency response planning, financial management, drug and alcohol abuse recognition, positive discipline, risk transfer, safety communications, accident investigation, hazard identification and general management issues. The nine employees who have completed the Supervisor Certification Program were recognized. They are:
Chris Gootee, Engineering Services Supervisor
Richard Beath, Wastewater Tech.
Michael Bull, Water Systems Supervisor
Greg Hoyle, Director of Operations & Facilities
Brian Lovelady, Construction & Maintenance Supervisor
John Stetson, Pumps & Motors Supervisor
Bill Jeffrey, Director of Finance (also completed Human Resources Cert.)
Jim Pugh, Manager of Accounting
Eric Rivard, Sr. Information Tech. Specialist
General Manager Arant reported that at present there are twenty-five employees enrolled in the ACWA-JPIA Supervisor Certification Program.
4. Request for Concept Approval of the Orchard Run Development’s Water and Sewer Facilities:
The Orchard Run Development (recently purchased by D.R. Horton Development Corp.) is 118.2 acres located west of Valley Center Road between Mirar de Valle and the intersection of Lilac and Betsworth Roads. The project consists of 248 single family units and 52 multi-family units.
District Engineer Grabbe outlined the project stating that the water distribution system for the development would be provided through extensions of existing mains in Mirar de Valle (12”), Lilac Road (8”) and Betsworth Road (8”). A gravity sewer collection system is proposed to provide individual service to each single family dwelling unit and to the multi-family dwelling units based on the type of buildings proposed. The sewer collection system will terminate at a sewer lift station for pumping of the wastewater to the Woods Valley Ranch Treatment Plant. Orchard Run Development will require 308 equivalent dwelling units of treatment capacity or 77,000 gallons per day at 250 gallons per day per unit.
D. R. Horton will prepare plans and specifications for District approval to expand the Woods Valley Ranch Water Reclamation Facility after construction by Newland Communities and will process a waste discharge permit amendment to modify the plant location and disposal area previously approved for the Orchard Run Water Reclamation Facility. D.R. Horton will process a Waste Discharge report to expand the Woods Valley Ranch Treatment Plant which is not expected to be a lengthy process as a Waste Discharge Permit had been obtained for the facility planned on the Orchard Run Development property.
A recycled water distribution system is proposed for the Orchard Run development consisting of effluent pumps at the treatment facility, transmission main to a seasonal storage facility in the development, a booster pump station and a recycled water irrigation system. A disposal area of approximately 35 acres is designated within the Orchard Run development that will be able to utilize the 77,000 gallons per day of recycled water generated by the development.
Concept approval of the water distribution, sewer collection, wastewater treatment and reclaimed water facilities for the Orchard Run Development, as set forth in the Preliminary Design Report for the development and reviewed by staff, was recommended.
In response to the request by Mr. Hilbig and Mrs. Olson to be given consideration for their properties’ inclusion in the expansion of the Woods Valley Ranch Treatment Plant for the Orchard Run Development, Mr. Eric Ruby, Vice President of Planning for D.R. Horton, stated that a change in their proposed project would result in a substantial delay (estimated at a minimum of 12 months) for the Orchard Run development. Mr. Ruby confirmed that all permits and environmental documents have been obtained for the Orchard Run Project, engineering work is in its final phase, and the issuance of a grading permit from the County is anticipated within 2 months. Mr. Hilbig reiterated that he is not requesting a delay of the Orchard Run Project, but rather an expansion of the Woods Valley Ranch Treatment Plant to accommodate the Alti and Bell properties as well as other nearby properties. Mr. Hilbig asked for assurance that a Phase 3 sewer expansion become a reality. General Manager Arant explained that the 3rd phase of the Woods Valley Ranch Treatment Plant is anticipated to secure sewer service for those interested properties in the South Node. To facilitate this future expansion project, the District is installing perpendicular crossing sleeves at strategic locations along Valley Center Road for properties to connect to the treatment plant and easements are being secured from Woods Valley Ranch that will accommodate future hookups. Any sewer expansion project to the Woods Valley Ranch Treatment Plant will require satisfying requirements for wet weather storage and disposal area for the treated effluent.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, concept approval of the Orchard Run Development’s water distribution, sewer collection, wastewater treatment and reclaimed water facilities, subject to the conditions set forth in the Preliminary Design Report, were approved.
5. Consideration of Proposals for Analysis of a Solar Power Project:
Presentations were provided by two ACWA Solar Partner firms, WorldWater & Power and Power Light at the May 16th Board meeting. Potential solar power sites of the District had been toured; namely, Betsworth Pump Station/Lake Turner Property and the Miller Reservoir site and Pump Station property. Preliminary reports on the potential of solar power for the District were prepared by both WorldWater & Power and PowerLight and reviewed by Mr. Lon House, Water and Energy Consulting. It was opined that there is a potential for a solar project at the Betsworth Pumping Station and Lake Turner Property with the Miller Reservoir property not considered feasible due to its terrain. The reports for the solar power firms indicate that:
• The pay-back period for an investment in a solar power program is estimated at 12 to 15 years and its cost effectiveness would be affected by assumptions concerning utility subsidy levels, environmental mitigation costs, development costs, O&M costs, component replacement cycles, costs of power from the grid, etc.
• A negative cash flow of approximately $500,000 per year over the projected energy cost savings during the first 8 years of operation is assumed. Lease payments range from $900,000 to $1.1 million. The 1 megawatt facility with a 1200 foot transmission main to Betsworth total approximately $7 to $8 million in capital costs.
Dr. Lon House of Water and Energy Consulting feels that the preliminary assessments may be conservative in that the actual costs could be less and pay-back period reduced. This combined with the benefit to the District of having a system that can operate independent of the grid and that there are substantial new subsidies available under the recently signed Energy Policy Act of 2005, Dr. House recommended that the District pursue a more detailed feasibility analysis.
Proposals from WorldWater and Power and PowerLight to conduct detailed project engineering, cost and financial analysis for a Solar Electric Project at the District’s Betsworth Pump Station and Lake Turner Property were requested as well as a proposal from Dr. Lon House (Water and Energy Consulting) to provide solar consulting services or an independent analysis of the proposals. Proposals were submitted by WorldWater and Power at a cost of $19,733 and Lon House’s proposal was for a not-to-exceed budget of $7,500.
Adoption of Resolution No. 2005-29 to approve the contracts with WorldWater and Power and Water and Energy Consulting to conduct an engineering and economic feasibility analysis for solar power at the District’s Betsworth Pumping Station/Lake Turner Property was recommended and an amendment to the 2005-06 budget (energy assessment capital fund) to provide an additional $8,806 was requested.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2005-29
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT APPROV-
ING THE CONTRACTS WITH WORLDWATER AND POWER,
INC. AND WATER AND ENERGY CONSULTING PURSUANT
TO A SOLAR ELECTRIC PROJECT AND AN AMENDMENT
TO THE 2005-06 BUDGET TO APPROPRIATE AN ADDITIONAL
$8,806 TO THE ENERGY ASSESSMENT CAPITAL FUND
was adopted by the following vote, to wit:
AYES: Directors Broomell, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Polito
6. Policy for the Provision of Wastewater Services:
Policy language to assist the Board and staff in determining where it would be appropriate to establish or extend wastewater or sewer service has been drafted for the Board’s consideration. If adopted, the policy for the provision of wastewater services will be added to Article 170 of the District’s Administrative Code, Sewage Disposal Service – Rules and Regulations. Board review of the proposed policy provisions and comments were requested. The policy as proposed was reviewed as summarized below:
~ The appropriate land use agencies determine where wastewater services should be provided with parameters for evaluating the provision or extension of wastewater services to other areas under specific circumstances.
~ Wastewater systems development shall be initiated by property owners and private development interests with the District’s primary role to oversee and facilitate the process.
~ All costs to be borne by the proponents and subscribers to the wastewater systems.
~ Developments seeking access to wastewater service will be evaluated on the basis of providing water recycling opportunities and seasonal storage adequate to accommodate their own wastewater disposal needs.
General Manager Arant recommended and the Board concurred that the proposed policy for the provision of wastewater services be forwarded to the appropriate land use agencies for their comments with the policy then brought back to the Board for consideration of adoption.
7. Approval to Defer Purchase of Diesel Truck Approved in the 2005-06 Budget and Purchase Two Mid-Size Trucks:
Director of Operations Hoyle requested the deferral of the purchase of a diesel service truck which had been approved in the FY 2005-06 budget due to new requirements by the California Environmental Protection Agency Air Resources Board to reduce emissions from diesel engines. The new requirement will require heavy duty vehicles over 14,000 gross vehicle weight rating operated by public agencies and private utilities to apply best available control technology to reduce diesel particulate. The purchase of the 1-1/2 ton diesel truck prior to the equipment being installed on all diesel trucks after 2007 would necessitate its retrofit at a cost of $8,000. Therefore, deferral of the purchase of the 1-1/2 ton diesel truck to the 2006-07 budget year was requested.
Purchase of two mid-size trucks in the current fiscal year in lieu of the approved 1-1/2 ton diesel truck was requested. One of the requested trucks would be assigned to the Meter Department that due to staff increases is in need of an additional truck, and the other requested truck would allow vehicle #23 which has over 200,000 miles to be taken out of service. A vehicle had been approved and purchased in FY 2004-05 for the replacement of vehicle #23 but it was never taken out of service due to a fleet shortage.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the purchase of a 1-1/2 ton diesel truck approved in the 2005-06 budget was deferred until 2006-07 and the purchase of two additional mid-size trucks was approved with the funds appropriated in the 2005-06 budget ($59,000) for the purchase of the diesel truck.
GENERAL MANAGER’S AGENDA
8. Review of Miscellaneous Informational Items:
• Comments on the San Diego County Water Authority’s 2005 Urban Water Management Plan: - A letter of comment on the San Diego County Water Authority’s Draft 2005 Urban Water Management Plan (UWMP) was forwarded to Dana Friehauf, Principal Water Resources Specialist. Part of the UWMP is a projection of water demands to 2030. Initial projections were considered low as they had assumed that any parcel designated to convert from agric. to residential would have the entire parcel converted; i.e. no agricultural activity was retained. This assumption was amended and the end result was a projection of agric. water demands in the County being amended from its original estimate of 34,000 ac. ft. by 2030 to 51,000 ac. ft. by 2030. The comment letter on the San Diego County Water Authority’s Draft UWMP points out that conversion of land from agricultural to residential may occur at a slower rate than indicated by SANDAG and that agricultural demands should be closely monitored over the ensuing years with the Authority prepared to adjust agricultural demand projections based upon future data.
• Bids for the Valley Center Road Improvement Project – District Engineer Grabbe informed the Board that bids for the County’s Valley Center Road Improvement project were opened on September 15th with the apparent low bidder being Archer Western with a bid of $34,141,816, which is 22% above the engineer’s estimate for this project. The District’s water improvements bid with the road improvement project indicate that the low bid received was for $4,843,957 or 21% above the engineer’s estimate for this work.
The county is evaluating the bid for further action. An option under consideration is to rebid the project. A bid breakdown of the water facilities project will be provided by mid-week for staff’s evaluation.
BOARD OF DIRECTORS’ AGENDA
9.
San Diego
County
Water Authority Workshop:
At a recent workshop held by the San Diego County Water Authority, annexation policies were discussed. A presentation by Mr. Sundrum of the Rainbow M.W.D. was given on the proposed Pardee annexation for the property east of Intestate 15 and north of Highway 76. A Municipal Service Review has been initiated by LAFCO which will involve the District. Pardee Homes has listed the District as an option for service along with Rainbow M.W.D., and the San Luis Rey M.W.D. General Manager Arant stated that he will request that representatives from Pardee Homes provide an informational presentation to the Board regarding their proposed project and service needs.
10. ACWA Workshop: Desal – Fact or Fantasy?:
Director Stone reported that he had attended the program sponsored by ACWA Regions 8, 9 and 10 titled “Desal – Fact or Fantasy?” He stated that the program had included speakers to provide perspectives on desalination from regulatory agencies, environmental organizations and the water industry and was well received. Desalination is considered an important component of water resources supply for Southern California. As such, adoption and implementation of the desal. task force’s recommendations included in the State’s draft Water Plan will be endorsed. General Manager Arant noted that he will assemble highlights from the workshop’s presentations and distribute it to the member agencies of ACWA Regions 8, 9 and 10.
ADJOURNMENT
11. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at
4:45 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary