VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, June 19, 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 and Stone. Director Haskell was absent. Staff members present were: General Manager Arant, General Counsel Cowett, Director of Finance Jeffrey, Director of Operations Hoyle, District Engineer Grabbe, Board Secretary Stetson, IT Specialist Rivard, and Manager of Accounting Pugh. Spectators present were: Mr. Tebbitts of Kennedy/Jenks Consultants, Mr. Hilbig, Mr. and Mrs. Olson and Mr. Dave Ross, Valley Roadrunner Newspaper.
CONSENT CALENDAR
1. Upon motion by Stone, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held June 5, 2006
• Audit demand check numbers 109000 through 109168
• Board of Director’s request for reimbursement of expenses and per diem compensation
• Concept approval of the Welk Garden Villas (TM 5134 Rpl 6) consisting of approximately 5,000 feet of 8-inch water main, 650 feet of 8-inch wastewater main and other appurtenances
• Resolution No. 2006-30 establishing the appropriation limit for proceeds from taxes per the Government Code and Article XIIB of the State Constitution
• Quitclaim of easements to Minh Nguyen and Theo Huynh – that portion of the access easement, Document No. 79-484786, recorded November 26, 1979, and a blanket easement recorded June 19, 1978 as Document No. 78-253053.
ACTION AGENDA
2. South Node Wastewater Master Plan Update and Commitment Letters Proposal:
Project Manager Kilwein reported that Kennedy/Jenks Consultant has been working on preparation of the draft master plan update for the South Node Wastewater Project.
Mr. Matt Tebbitts of Kennedy/Jenks addressed the Board to provide an update on the draft master plan and provide information on the issuance of letters of commitment to landowners in the area. He explained that the 1st phase of expansion of the Woods Valley Reclamation Plant will be identified after receiving responses on the letters of commitment from the landowners. Mr. Tebbitts reviewed that the Woods Valley Development Plant currently under construction will have a capacity of 70,000 gpd. The Orchard Run Development’s expansion of the Woods Valley Plant (77,000 gpd treatment capacity) is under design and the discharge permit is being developed by the Regional Water Quality Control Board.
In developing the South Node Master Plan, criteria considered were: General Plan 2020 land use; utilization of a pressure sewer system; expansion increments of 75,000 gpd; utilize the available Woods Valley development’s plant site, and maximize the use of effluent to meet the Woods Valley Golf Course’s irrigation demands. Mr. Tebbitts explained that the ultimate service area for the South Node Wastewater Expansion has been estimated at 1,556 EDUs with the minimum service area at 313 EDUs. The minimum service area encompasses those properties that have submitted letters of interest for development and properties nearby that can be served sewer with relatively short extensions.
Reclamation or the disposal of the treated wastewater for the South Node Village is a critical feasibility component of the sewer expansion project. Reclamation for the expansion project will be achieved by:
• Maximize Woods Valley Golf Course recycled water use. (Woods Valley Golf Course irrigation demand is limited by the groundwater management plan.)
• Orchard Run development’s irrigation demands will handle the wastewater generated.
• Reclamation for the minimum development of the service area can be accommodated by the golf course demands, but additional irrigation use site(s) will be needed beyond the minimum development phase.
The Woods Valley and Orchard Run developments will provide their own wet weather storage as required by the Regional Water Quality Control Board to comply with the basin plan. All future expansion phases will require additional wet weather storage. Three potential wet weather storage sites based on topography were reviewed. They are: 1) Immediately to the west of Orchard Run, 2) North on Lilac near the intersection with Valley Center Road which is property owned by the District, and 3) off of Betsworth Road.
Estimated costs for the South Node sewer expansion project are:
Ultimate build-out - $31,200 per EDU ($48.5 million capital cost)
Minimum expansion - $37,800 per EDU ($11.8 million capital cost)
A proposed scheduled for the South Node Wastewater project was reviewed as outlined below:
~ Authorization to issue letters of interest – Summer 2006
~ Public meetings with the property owners – Summer 2006
~ Determine the first phase capacity – Fall 2006
~ Approve final draft Master Plan in which the 1st phase would be determined based on letters of commitment from landowners – Late 2006
~ Adopt Environmental Impact Report and approve Master Plan – Summer 2007
~ Obtain updated discharge permit – Summer 2007
~ Complete Assessment District proceedings – Fall 2007
~ Begin construction – 2008
Mr. Tebbitts clarified that interested property owners in the South Node Sewer Expansion project will be required to fund environmental and engineering services needed prior to the bond sale in which the deposits would be nonrefundable. Deposits could be a cash payment or through a preliminary assessment district process. He concluded that the draft Master Plan will be finalized based on responses from the letters of interest which will define the South Node Wastewater Expansion project. The commitment letters to property owners will be prepared which will set forth the deposit required and its due date as well as the meeting to be held with property owners. It was reiterated that the response from the interest letters will define the first phase expansion at the Woods Valley Treatment Plant for the South Node properties.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the Board authorized notifying property owners within the South Node wastewater service area to request a financial commitment from the property owners to participate in the design and discretionary approvals for the South Node wastewater expansion project and approved the formation of an assessment district for said project.
3. Resolution No. 2006-32 Opposing the Caves Initiative, Proposition 84:
Proposition 84, the Caves Initiative or “The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006”, will be on the November 2006 ballot. Proposition 84, if adopted by the voters, is a $8.9 billion bond (including interest costs), but contains no funding for the construction of major water infrastructure and has only $65 million allocated for Statewide water planning and design.
ACWA’s position on the Caves Initiative had been to work with the proponents to include funding for water projects, however, the measure approved for the ballot does not include such provisions. In December of 2005, the board had adopted Resolution No. 2005-39 opposing passage of the bond initiative. Resolution No. 2006-32, prepared for the Board’s consideration, reaffirms the District’s position of opposing the initiative. Resolution No. 2006-32 will be sent to ACWA Region 10 member agencies which includes language that “the Association of California Water Agencies and the California water community should collectively oppose this initiative and withhold support of any future water bond proposal until studies regarding two of the most pressing issues, which are securing reliable delta conveyance and constructing additional surface storage for the State Water Project, are completed and approved projects are ready for construction.”
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-32
A RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT OPPOSING
PASSAGE OF PROPOSITION 84, “THE SAFE DRINKING
WATER, WATER QUALITY AND SUPPLY, FLOOD CONTROL,
RIVER AND COASTAL PROTECTION BOND ACT OF 2006”
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
4. Adoption of Fixed Charge Special Assessments for Assessment District 96-1 and Authorization to Lien Parcels for Unpaid Water and Other Services:
Resolution No. 2006-31 was presented establishing the District’s fixed charge special assessments for Assessment District 96-1 (Treasures at Castle Creek – improvements to the Lower Moosa Canyon Wastewater Treatment Facility) and authorizing the District to add delinquent and unpaid charges for water and other services on the tax roll for 2006-07.
An assessment on the 200 parcels in Assessment District 96-1 of $754.38 per parcel for 2006-07 is needed to meet the principal and interest obligations of the bonded indebtedness. The Water Code authorizes the District to add delinquent and unpaid charges for water and other services to the property taxes of the property using the
water or service. The delinquency must be unpaid for at least 60 days and have had a lien recorded against the property. Two properties (185-380-03 and 185-380-04) with a total delinquency of $16,531.34 are eligible to be placed on the tax roll.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-31
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY
CENTER
MUNICIPAL WATER DISTRICT PLACING FIXED CHARGE SPECIAL
ASSESSMENTS FOR 2006-07 ON PROPERTY WITHIN ASSESS-
MENT DISTRICT NO. 96-1 AND ON PROPERTY FOR UNPAID
CHARGES FOR WATER AND OTHER SERVICES PURSUANT TO
STREETS AND HIGHWAYS CODE SECTIONS 8680 AND 8682
AND WATER CODE SECTIONS 72084, 72100, 72102 ON
THE
SAN DIEGO
COUNTY
SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
5. Adoption of the District’s Operating and Capital Budget for Fiscal Years 2006-07 and 2007-08:
The District’s two-year budget for Fiscal Years 2006-07 and 2007-08 had been reviewed at the Board meetings of May 15th and May 30th, and was presented for the Board’s adoption. Water sales are projected at 44,500 acre feet for FY 2006-07 and 45,400 acre feet for FY 2007-08. All budgeted funds for Fiscal Year 2006-07 and 2007-08 total $46,073,441 and $49,265,629, respectively. Water rate increases projected based on available data from the District’s wholesale water suppliers will be presented for the Board’s adoption to be effective January 1, 2007 and 2008. Estimated water rate increases are: 11.9% in 2007 and 5.4% in 2008 for agricultural customers and 9% in 2007 and 4.8% in 2008 for M&I customers.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-09
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT ADOPT-
ING THE FINAL OPERATING AND CAPITAL BUDGET
FOR THE FISCAL YEARS 2006-07 AND 2007-08
AND ESTABLISHING CONTROLS ON CHANGES IN
APPROPRIATIONS FOR THE VARIOUS FUNDS
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2006-09
ORDINANCE OF THE
VALLEY
CENTER
MUNICIPAL
WATER DISTRICT AMENDING THE ADMINISTRATIVE
CODE TO PROVIDE FOR CHANGES IN AUTHORIZED
STAFFING LEVELS FOR THE FISCAL YEAR 2006-07
PER THE TWO-YEAR 2006-2008 BUDGET
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2006-10
ORDINANCE OF THE
VALLEY
CENTER
MUNICIPAL
WATER DISTRICT AMENDING THE ADMINISTRATIVE
CODE TO INCORPORATE CHANGES PER THE APPROVED
MEMORANDUM OF UNDERSTANDING WITH EMPLOYEES
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
GENERAL MANAGER’S AGENDA
6. Review of Miscellaneous Informational Items:
▪ Beat the Peak Efforts this Summer – Anticipating that water cutbacks may be experienced this summer due to the inefficient supply of treated water for our region until the summer of 2007 when Metropolitan’s improvements at the Skinner Treatment Plant are scheduled to be on-line, a letter will be sent to the District’s agricultural and large irrigation accounts to notify them that they may be contacted to assist with water usage cutbacks of between 5% to 10%. The reduction in demand will be requested for approximately 2 to 8 hours depending on peak flow conditions. Customers will be asked to reduce their water usage on a rotational basis.
▪ Valley Center Parks and Recreation District Request for Easement – A request has been received from the Valley Center Parks and Recreation District for a grant of an easement from the District over its property along Bus Lane for electrical service to its Cole Grade Park facility. General Manager Arant stated he has requested that for the grant of the requested easement that the District be granted an easement across the Valley Center Parks & Recreation District’s property on Lilac Road, along the westerly boundary up to the Orchard Run property. This will accommodate sewer connection for the District’s property on Lilac Road across from the Valley Center Parks & Recreation District property. The Board concurred with the proposed exchange of easements.
▪ Letters Opposing AB 2397 and AB 2641 – Letters of opposition were mailed to Legislative members regarding AB 2397 (Calderon) and AB 2641 (Coto). AB 2397 would prohibit the Metropolitan Water District from contracting for supplemental services that otherwise could be performed by Metropolitan employees and AB 2641 would require an interruption in a development’s activity once a Native American burial ground is discovered and that a consultation process be initiated by the landowner. The Board ratified the oppose positions on AB 2397 and AB 2641.
The importance of sending letters to register a position on pending legislation affecting the water industry was discussed. Board members were encouraged to forward letters as individuals along with the District’s letters to legislative members.
BOARD OF DIRECTORS’ AGENDA
7. Districts of Distinction Program:
The Special District Leadership Foundation has developed a Districts of Distinction program to “assist districts with a proactive avenue to demonstrate their viability as a provider of effective local public service”. ACWA Board members will consider at the July meeting if ACWA will participate in this program. To obtain this distinction, districts must implement sound policies and procedures, and its elected officials and management staff must complete governance training. The Districts of Distinction designation is valid for two years at which time the District may submit an application for renewal, provided all the program elements continue to be met. Staff will determine if the Ethics Training completed by Board Members per AB 1234 every two years will satisfy the governance training requirement or what alternate program would qualify.
GENERAL COUNSEL’S AGENDA
8.
U.S.
Supreme Court Decision Re: Clean Water Act:
General Counsel Cowett reported that the U.S. Supreme Court has ruled on a case involving the Clean Water Act in which it has given an interpretation of the term “nations waters”. The Clean Water Act regulates discharges into navigable water. The case heard by the Supreme Court considered whether ditches and other runoff that would go into a tributary to a navigable stream were included within the definition of the nations waters which require a permit from the Corps of Engineers. The Supreme Court has ruled that such tributaries are not part of the nations waters. With this decision, the number of bodies of water that are regulated by the Clean Water Act should be reduced.
CLOSED SESSION
9. A Closed Session was called by President Broomell at
3:50 p.m.
pursuant to:
$ Government Code '54957, Public Employee Discipline/Dismissal/Release
$ Government Code '54957(b)(1) – Public Employee Performance Evaluation: General Manager, and
Government Code '54957.6 – Conference with Labor Negotiator,
Unrepresented Employee: General Manager
RECONVENE
10. The regular Board meeting was reconvened at 4:30 p.m., and the following action was reported:
The Employment Agreement Between the Valley Center Municipal Water District and Gary T. Arant, General Manager, was amended to be effective July 1, 2006, providing for an annual salary of $170,000 and a performance bonus of $9,400.
ADJOURNMENT
11. Upon motion by Aleshire, seconded by Stone and unanimously carried, the meeting was adjourned at
4:34 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary