VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Tuesday, January 17, 2006
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 de Sousa, Director of Finance Jeffrey, District Engineer Grabbe, Director of Operations Hoyle, Board Secretary Stetson, IT Specialist Rivard, Project Manager Williams, Pumps and Motors Supervisor Stetson, Sr. Electrician Olson, Construction & Maintenance Technicians Martineau and Reeh and Meter Services Technician Navarro. Spectators present were Ms. Nancy Gardiner of Brown & Caldwell and Larry Slominski, WorldWater & Power Corp.
CONSENT CALENDAR
1. Upon motion by Polito, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held December 19, 2005
• Audit demand check numbers 106908 through 107233 and wire disbursements 05-076 through 05-105
• Treasurer’s Report and Financial Statements for the period ended November 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 December 31, 2005
PUBLIC HEARING
2. Public Hearing to Consider Adoption of the District’s Urban Water Management Plan, 2005 Update:
The public hearing to discuss and receive comments on the District’s Urban Water Management Plan, 2005 Update was opened at 2:03 p.m. General Manager Arant reported that the Urban Water Management Planning Act of the State Water Code requires that the District prepare and update its Urban Water Management Plan at least once every five years. An Urban Water Management Plan was completed by the District beginning in December of 1985 and updates prepared and adopted every five years thereafter. A notice of the public hearing had been published twice in the Valley Roadrunner Newspaper inviting comments and public input on the 2005 Update and copies of the Draft Plan were available at the Valley Center Library and the District’s office. In addition, the Draft Plan was forwarded to the County Department of Planning and Land Use, the San Diego County Water Authority, City of Escondido and other interested parties of record. No comments on the Draft Plan were received.
The District’s 2005 Urban Water Management Plan Update was coordinated and compiled by consultants from Brown and Caldwell. Nancy Gardiner, Project Manager of Brown and Caldwell, reviewed key elements to be included in an agency’s Urban Water Management Plan which include identifying water supply sources, desalination opportunities, reliability and vulnerability of water supply, water conservation, water shortage actions and future water supply projects. Ms. Gardiner outlined the required changes since completion of the 2000 Update affecting the 2005 Update. They are:
● Additional monthly climate information
● Water quality impacts for the next 20 years at 5 year intervals
● Comparison of recycled water in year 2000 Plan and projected and actual recycled water use
● Recycled water plan coordination
● Wastewater collection, treatment and reuse volumes in five year intervals over the next 20 years
● Annual conservation activities, costs and water saving estimates for the past five years and future five years
● Multiple dry years including a four-year dry scenario
● Projected normal and multiple dry year scenario supply and demand for the next 20 years in five year intervals
● Report future water supply projects with data on start dates, completion dates, normal and dry year supply
● Provide adopted Urban Water Management Plan to cities and counties within service area
Within the District’s 2005 Urban Water Management Plan, recycled water is addressed in which it is noted that there is a commitment to expanding use of recycled water within the District’s service area (up to 2,320 AFY by 2025). Several new developments are in the planning stages that will include water reclamation facilities with the recycled water to be applied on golf courses and possible agricultural fields.
Desalination offers a potential future supply and the Draft Plan will be modified to include the agreement approved with Poseidon Resources to purchase up to 7,500 ac. ft. annually of desalted seawater through an exchange agreement with another water agency. The water purchase agreement with Poseidon for desalinated water will economically diversify water sources and increase supply reliability for the District.
Ms. Gardiner reported that the data on water supply vs. demands during normal year water supply and multiple dry water years indicate that water supplies will be adequate to meet water demands. Director Aleshire questioned the projected normal year water demand of 36,287 ac. ft. in year 2025. General Manager Arant explained that, though the projected demands are in the low range of demands reported in the District’s 2002 Water Master Plan, the reduced demand levels projected in the 2005 Urban Water Management Plan reflect the revised SANDAG population growth projections and are consistent with the figures contained in the San Diego County Water Authority’s Urban Water Management Plan. SANDAG’s population growth projections assume a rate of agricultural to residential land conversion in which the projected agricultural demands were significantly increased from initial projections after the methodology used in developing the agricultural water demand projections was reevaluated in response to comments from the District and other large agricultural agencies. He further explained that because the District’s backbone or core water distribution system is in place and able to serve well in excess of 50,000 acre feet in a given year, the San Diego County Water Authority’s SANDAG based demand projections will not impact the District’s ability to deliver above their projections. According to the SDCWA, a reasonable range of variability among a limited number of its agricultural agencies can and will be accommodated in the planning for their overall system capacity. In response to a question from Director Aleshire, General Manager Arant confirmed that a letter of comment on the San Diego County Water Authority’s Urban Water Management Plan had been forwarded earlier this year advising and requesting that a reasonable range of demand variability for its agricultural agencies be included in the SDCWA’s future resource and capital facility planning and development. He also stated that language will be added to the District’s 2005 Urban Water Management Plan Update to address the significantly low agricultural demand projections which were incorporated into the Plan Update per SANDAG’s assumed rate of agricultural to residential land conversion and population growth projections. The District’s concern regarding adequate system capacity if agricultural demands remain significantly higher than predicted will be addressed.
The public hearing conducted to receive input on the 2005 Update of the Urban Water Management Plan was closed at 2:31 p.m.
Upon motion by Polito, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-02
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT ADOPT-
ING ITS 2005 URBAN WATER MANAGEMENT PLAN
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
ACTION AGENDA
3. Authorization to Apply for
California
Public Utilities Commission Self Generation Incentive Program and Approval of Budget Adjustment:
General Manager Arant reported that an initial draft of the feasibility analysis report for a Solar Electric Project at the District’s Lake Turner property and Betsworth Pump Station was submitted by the consultant, Larry Slominski of World Water and Power. Additional cost data and financial analysis need to be completed, but early indications are that a 1 megawatt solar electric power project will cost between $8.5 and $8.8 million with $2.8 million in solar electric power support through the California Public Utilities Commission Self Generation Incentive Program (SGIP). Utilizing these estimates, the net cost to the District will result in an annual negative cash flow and break-even period of 15 to 18 years. There are provisions under the Federal Energy bill that will enable the District to secure interest free bonds which would reduce the cost for the proposed solar electric power project.
Approval to process an application to the California Public Utilities Commission Self Generation Incentive Program at a cost of $14,000 was requested at this time as the opening date to apply for the limited funds appropriated for this project ($300 million) is February 1, 2006. Staff noted that the application fee would be refunded if the project is not funded in 2006, but would be forfeited if funding is approved and the solar project does not move forward. It is not known if incentive funds will be available in 2007.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the Board authorized applying for funding under the California Public Utilities Commission Self Generation Incentive Program conditional upon review of the financial analysis of the proposed solar electric power project as provided by World Water and Power and the following resolution, entitled:
RESOLUTION NO. 2006-01
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT AMEND-
ING THE 2005-2006 BUDGET BY APPROPRIATING AN
ADDITIONAL $15,000 TO THE ENERGY ASSESSMENT
CAPITAL ACCOUNT TO FUND THE APPLICATION FEE FOR
THE
CALIFORNIA
PUBLIC UTILITIES COMMISSION SELF
GENERATION INCENTIVE PROGRAM (SOLAR ELECTRIC PROJECT)
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
4. Request for Budget Adjustment for the
Valley Center Road/North Lake Wohlford Road
Pipeline Relocation Project:
Relocation of the Valley Center Road/North Lake Wohlford Road Pipeline is necessary due to the county’s road improvement project at this intersection. The work consists of relocation of numerous appurtenances and installation of a main line valve and corresponding appurtenances. Initial funding for this project in the 2005-06 budget was $10,000 in which additional funds would be requested upon design of the project and preliminary construction cost estimates.
Project Manager Williams requested adoption of Resolution No. 2006-03 to transfer $100,000 from the Unspecified Pipeline Replacement account to provide funding for previously expended funds and anticipated construction and construction-related costs for the relocation project. Mr. Williams explained that the relocation work will be coordinated with the county’s improvement project at the intersection and that staff is continuing in its effort to reach an agreement with the County to include the District’s project as part of the county’s project. If the projects are bid together, a cost savings of $30,000 is estimated. Also, staff will investigate if the intersection improvement project is a county project or a developer sponsored improvement project as the relocation costs may be reimbursable if it is a private developer’s project.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-03
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE 2005-2006 BUDGET BY TRANSFERRING
$100,000 FROM ACCOUNT NO. 01-5602.78
(UNSPECIFIED PIPELINE REPLACEMENT) TO
ACCOUNT NO. 01-5608.78 (
VALLEY CENTER ROAD
/
N.
LAKE WOHLFORD ROAD
PIPELINE RELOCATION
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Preliminary Concept Approval of the
North Centre City Parkway
Project:
Mr. Robert Sukup with the Sea Bright Company has submitted a project description and preliminary information for a proposed commercial development project for the property located near the intersection of Mountain Meadow Road and Champagne Boulevard requesting preliminary concept approval for sewer service. The development project encompasses four properties totaling approximately 28.4 acres. Preliminary concept approval for sewer service has been requested to enable the project proponents to proceed with preparation of a preliminary design report and other design documents needed for the project’s approval. District Engineer Grabbe explained that the proposed development is within the District’s Lower Moosa Canyon Water Reclamation Facility’s sewer service area with the exception of one parcel (Raste property). However, the Moosa sewer service area could be modified to include the Raste property in which the sewer service capacity for the parcel would be consistent with the county’s approved land use designation
Proposed sewer improvements are construction of a sewer lift station, force main and gravity main in Champagne Boulevard and connection to the District’s gravity sewer main south of the Champagne Gardens development. The proponents for this development will be required to submit a preliminary design report for concept approval providing further detailed information on the project.
Director Aleshire excused himself from discussion on this proposed request noting that he is the owner of property off of Mountain Meadow Road located within 500 feet of the proposed development. Due to this potential conflict of interest, Director Aleshire left the Board Room
Upon motion by Polito, seconded by Haskell, preliminary concept approval was granted for sewer service for the North Centre City Parkway project subject to county approval, compliance with CEQA, and review and subsequent approval of a preliminary design report and construction plans.
6. Report of Reduced Water Supply and Use Restrictions:
General Manager Arant reported that the aqueducts providing water service to the District will be shut down from February 4 to 16, 2006, to facilitate Metropolitan Water District’s work on module 7 at Lake Skinner Treatment Plant and also accommodates the San Diego County Water Authority’s maintenance and inspection of the aqueducts.
Director of Operations Hoyle stated that notices will be mailed to customers alerting them of implementation of the District’s Emergency Water Management Plan for the shutdown period. As such, all outdoor landscape irrigation, use of water for agricultural purposes (except livestock watering), unnecessary domestic use and the use of construction water will be prohibited. The District’s website will be updated daily as to the status of the shutdown, and the public will also be informed of the reduced water use provisions through newspaper articles and community message boards. District staff will patrol the District’s service area to enforce compliance with the water use restrictions to ensure sufficient water availability to meet domestic use and fire protection. The temporary water meter serving the San Pasqual Indian Reservation will be shut off for the shutdown period. Meters will be installed at Lake Turner for filling of water trucks for construction use.
7. Population Estimates:
Director of Finance Jeffrey provided an update on the population estimate for the District’s service area which is 25,040 as of January 1, 2006. This estimate is based on a dwelling count of 8,943 and a per dwelling population of 2.8. A population of 25,040 is a 2% increase since January 2005.
GENERAL MANAGER’S AGENDA
8. Review of Miscellaneous Informational Items:
● Two-Year Budget Proposal – General Manager Arant noted that information on a two-year budget process had been forwarded to the Board for consideration. Advantages of a two-year budget include reduced staff labor compared to preparation of a budget annually and that there would be an inclination toward longer-term planning with a two year budget period. The availability of staff time could be spent on other projects and analysis. Staff noted that many capital projects are not completed in one year. Also, the strategic planning cycle could be extended from two years to a four or six year cycle to incorporate two or three budget cycles.
In response to the question of the validity of the budgeted figures in the second year of a two-year budget, staff reported that the San Diego County Water Authority approves a two-year appropriation with two single year budgets in which there is the ability to transfer funds from one year to the other. A mid-year report on the two year budget is provided the Authority’s board with disclosure of transfers and balances as well as requests for adjustments, if needed. General Manager Arant stated that he will endeavor to arrange for a presentation at the February 6th meeting by Paul Lanspery, Deputy General Manager of the San Diego County Water Authority, on a two-year budget process.
GENERAL COUNSEL’S AGENDA
9. Attorneys’ Fees, Wholesale Electricity Litigation:
General Counsel de Sousa provided a check to the District in the amount of $45,872.74 which represents the District’s share of the payment of attorneys’ fees pursuant to the wholesale electricity litigation settlement with Duke Energy. The attorneys’ fees payment is for the period of January 27, 2004 through November 14, 2005.
BOARD OF DIRECTORS’ AGENDA
10. Water Bond:
Director Aleshire reported that at the recent ACWA Region 10 meeting, a teleconference was held with the Authority’s lobbyist, Mr. Clay. Indications are that Joe Caves’ proposed bond “Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection” will be embedded in either the Governor’s bond or Senator Perata’s bond. Region 10 members discussed supporting a water only bond, however, the likelihood of such a bond being placed on a state-wide ballot is considered remote. Region 10 members recommended that ACWA take no position on any pending bond as amendments by the Legislature may not be acceptable. Rather, ACWA staff will be requested to prepare a budget proposal with specific water infrastructure projects for submittal to both the Governor’s and Senator Perata’s offices.
General Manager Arant reported that two bills have been introduced (AB 1839 Laird and SB 1166 Aanestad and Machado) to form a conference committee of state assembly members and senators who will endeavor to formulate a water proposal within the Governor’s $220 billion infrastructure proposal. The water infrastructure fund as proposed to be collected on water meter services will be a funding source with half of the funds collected reallocated to the regions. Funds reallocated to the regions can be allocated toward their local share of state-wide storage. The Governor’s ballot proposal includes funds for water storage and delta levy improvements which will benefit our region.
ADJOURNMENT
11. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at
3:58 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary