February 17, 2009
VALLEY CENTER WATER DISTRICT
Regular Board Meeting
Tuesday, February 17, 2009
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 Cowett, District Engineer Grabbe, Director of Operations Hoyle, Director of Finance Jeffrey, Board Secretary Stetson, and Manager of IT Pilve. Spectator present was Mr. L. Weaver.
CONSENT CALENDAR
1. Upon motion by Stone, seconded by Aleshire and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held February 2, 2009
• Audit demand check numbers 121350 through 121490 and electronic disbursements for January 2009
• Treasurer’s Report and Financial Statements for the period ended December 31, 2008
ACTION AGENDA
2. Request for Budget Adjustment to Allocate Funding for the Proposed Welk Skimming Plant Study Project:
Board adoption of Resolution No. 2009-05 to amend the Fiscal Year 2008-09 budget to allocate funds for a feasibility study, preliminary design report, CEQA documentation and waste discharge permit modifications for the proposed Welk Skimming Plant was requested. The proposed Welk Skimming Plant would intercept the flow in the wastewater collection main to the Lower Moosa Canyon Water Reclamation Facility which is located adjacent to the Welk Development and treat the effluent to full Title 22 standards for use on the Welk golf course. As such, the recycled water from the skimming plant would be used to replace imported water supplies currently used to irrigate the Welk golf course.
District Engineer Grabbe explained that the early analysis and investigation work would be completed by staff with consultants selected to assist with preliminary design of the treatment facilities, CEQA documentation and waste discharge permit modification. The feasibility study will identify the supply and demand for recycled water, the project cost, identify funding sources and result in a recommendation whether to proceed with the project. Staff noted that the proposed Welk Skimming Plant project will, in addition to developing a new source of water, eliminate the need to upsize the wastewater trunk main and the need for a recycled water line in Champagne Boulevard.
The proposed Welk Skimming Plant Project has been approved to receive grant funds under the San Diego County Water Authority’s Local Investigation and Studies Assistance (LISA) program that provides matching funds for local water supply feasibility studies. A cost of $250,000 was identified to evaluate the feasibility of the project, prepare a preliminary design report, process CEQA documentation and obtain a waste discharge permit modification. Resolution No. 2009-05 authorizes the transfer of $125,000 from the Rodriguez Road pipeline project, which is not currently active and on hold, to match the San Diego County Water Authority’s grant funds approved from the LISA program.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-05
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT AMENDING
THE FY 2008-09 BUDGET TO APPROPRIATE MATCHING
FUNDS FOR THE WELK SKIMMING PLANT STUDY PROJECT
AS PART OF THE LOCAL INVESTIGATIONS AND STUDIES
ASSISTANCE (LISA) GRANT FUNDING PROGRAM
was adopted by the following vote, to wit:
AYES: Directors Broomell, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Polito
3. Request for Budget Adjustment to Allocate Additional Funding for Upgrades to the SCADA Radio Network and Purchase of a Bucket Truck:
District Engineer Grabbe reported that Notices of Completion were filed for Phases 1 and 2 of the Supervisory Control and Data Acquisition (SCADA) system radio network.
Adoption of Resolution No. 2009-08 was requested to transfer funds to upgrade the backbone radio system to improve reliability and performance, complete as-built drawings of the system and obtain as-needed technical support on the systems.
Proposed upgrades to the District’s SCADA system are adding two additional sites, the McNally and Betsworth Reservoirs that will serve as hubs for the radio system backbone, additional equipment to utilize a second radio controller at Central and radio equipment added at Cobb Reservoir. The additional sites and equipment will provide the redundant communication paths needed to maintain system integrity in the event of failure of any one component. The purchase of a bucket truck was also requested for use in the installation and maintenance of the SCADA radio system as well as for other maintenance tasks such as site lighting and security cameras. Owning a bucket truck will eliminate the need to rent this equipment and the equipment will be readily available when needed. These proposed improvements were estimated to cost $273,000. Resolution No. 2009-08 would authorize the transfer of $273,000 from the Rodriguez Road pipeline project to the SCADA project. The Rodriguez Road pipeline project is currently on hold pending reactivation by the developer.
Upon motion by Stone, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-08
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE FY 2008-09 BUDGET ALLOCATING
ADDITIONAL FUNDS FOR SCADA RADIO NETWORK
UPGRADES AND PURCHASE OF BUCKET TRUCK
was adopted by the following vote, to wit:
AYES: Directors Broomell, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Polito
4. Review of Implementation Plans for the Full-Price and SAWR Water Supply Reductions for 2009:
General Manager Arant reviewed the District’s Implementation Plans for the 2009 Full-Price and Special Agricultural Water Rate (SAWR) Water Supply Reduction. Metropolitan Water District is now predicting a 3 out of 4 chance that mandatory water use reductions will be declared due to the state’s water supply outlook. This declaration is expected in April following an evaluation of water supplies with an effective date of July 1, 2009.
If a mandatory reduction is called for full-price water deliveries, affected customers will be provided their respective monthly water usage allocations determined by the required percentage reduction against the respective average of the three base years of 2004-05, 2005-06 and 2006-07. Only usage over 10 units per month shall be subject to allocation allowing customers to utilize up to 10 units per month without an allocation restriction. Usage under the monthly allocation will be an “allocation carry-over” and rolled forward to offset over-usage in a successive month of the current year’s program. Penalty rates for over-usage are the current rate plus the MWD penalty rate of two times the Tier II wholesale rate for usage up to 15% above the base allocation and the regular rate plus an MWD penalty charge of four times the MWD Tier II wholesale rate for usage greater than 15% above a base allocation.
The Implementation Plan for the SAWR Water Supply Reduction provides that if a mandatory reduction is called for that impacts SAWR deliveries, affected customers will be provided monthly allocations based on a percentage reduction on usage in Fiscal Year 2006-07. Each SAWR combination ag-domestic account will be provided a minimum monthly allocation of 26 units. Usage under a monthly allocation will be a carry-over to offset over-usage in successive months of the current year’s program. Penalty rates for usage over an allocation are the regular rate plus the MWD penalty rate of two times the MWD Tier II rate for usage up to 15% above the base allocation and the regular rate plus the MWD penalty charge of four times the MWD Tier II wholesale rate for usage greater than 15% above a monthly allocation. Penalties paid can be earned back with conservation in subsequent months of the current year’s program, but cannot be earned back in a subsequent year’s program. SAWR customers may be subject to additional fines, penalties and/or a flow restriction if the account repeatedly exceeds the monthly allocations.
The Supply Reduction Implementation Plans will be presented for Board adoption at a meeting in March 2009.
5. Water Supply Update:
General Manager Arant reviewed data on the state’s water supply conditions noting that water equivalent precipitation for the watershed to the State Water Project has increased with the recent storms from 17.6 inches to 23.5 inches. This level, however, is below the average precipitation. Due to the lack of storage facilities on the State Water Project, water available during wet years cannot be stored to a level that could be used in below normal precipitation years. The initial 2009 State Water Project allocation was 15% of contract deliveries. Water deliveries could be further decreased by a continued dry spring, regulatory decision on the longfin smelt fish and the biological opinion expected on the Chinook salmon/sturgeon. Water conditions could improve if precipitation levels in the Northern Sierra region are high in February
and March. On the Colorado River basin, the snow water equivalents have improved in which most of the upper Colorado region is 80 to 120 percent of normal.
Metropolitan Water District’s projected water supply for 2009 is:
Colorado River Aqueduct 781,000 ac. ft.
State Water Project 731,000 ac. ft.
Resource Options 426,000 ac. ft.
The above water supplies combined with WSDM supplies with a minimum storage limitation imposed will result in approximately a 450,000 ac. ft. shortage in supply considering an estimated demand of 2.4 million ac. ft. With this shortfall in supplies, a 20% mandatory reduction would be likely.
6. Review of the Water Demand Offset Concept:
A water demand offset policy is being developed to be in place if an applicant for a new meter pursues the offset exception contained in the District’s water supply shortage response program. Upon the declaration of a water supply shortage response Level 2 and Level 3, the District’s policy pertaining to provision of a new meter states that:
No new statements of ability to serve shall be issued (such as Project Facility Availability letter, Project Service Commitment, and District Facility Conceptual Approvals) for projects with associated water demand. Only projects with existing PFA’s, PFC’s, or Concept Approvals with no associated direct water usage or those providing substantial evidence of an enforceable commitment that net water demands for the project from the District will be offset prior to the provision of a new water meter(s) to the satisfaction of District through the development of local water resources or participation in local or regional net demand offset program will continue to be processed.
The District’s Water Demand Offset Concept Policy White Paper was reviewed, which is attached as Exhibit “A”. An offset of net water demands shall be achieved through minimizing demand within the new development, investment in conservation for existing demand, and/or investing in local supply development or contributing toward a local or regional net demand offset program. Water agencies will be managing their own offset program parameters and the San Diego County Water Authority is evaluating potential options for a regional conservation program that could provide offsets to be purchased.
Participation in the Carlsbad seawater desalination project and groundwater development will not be considered as offset supply sources due to Metropolitan Water District’s subsidy and its drought allocation methodology. The District’s water
demand offset concept, as drafted, provides that demand within the District’s service area will be given the opportunity to access new supply opportunities prior to lands currently outside the District’s boundary and that local supply development opportunities will be exhausted prior to allowing the use of any regional opportunities. Also, a local supply program should be completed prior to the new development demand. The District’s Water Demand Offset Policy will continue to be developed and staff will continue to participate in the regional efforts conducted by the San Diego County Water Authority.
7. Strategic Plan Performance Standards Measurement Results for July 1, 2007 Through December 31, 2008:
The results of the Performance Standards measurements of the District’s Strategic Plan for July 1, 2007 through December 31, 2008, were presented and reviewed, as listed below:
• Customer Satisfaction – 100% “Meets” or “Exceeds” expectations
• Unknown Water Loss – 6.1%
• Discretionary Reserves – 9.5 months of operations and maintenance budget
• Local Commodity Rate for Local Operating and Maintenance Costs – 11.3% for full-price water and 15.4% for IAWP
• Pump Efficiency – 101%
• Project Actual Cost – No projects finalized in the current measurement period
• Water Service Reliability – 99.938%
• Compliance with All State and Federal Regulations – Full compliance
• Lost-time Accidents – 0 hours
• Return on Investments – 3.45% for calendar year 2008
The measurement standards were met with the exception of the Unknown Water Loss which was impacted by the malfunction of the automatic meter reading devices which is being corrected. The formula used for the pump efficiency calculations will be provided.
8. Authorization to Participate in the County of San Diego’s Pooled Money Fund:
Director of Finance Jeffrey stated that in an effort to diversify funds, as currently approximately two-thirds of the District’s portfolio is in the Local Agency Investment Fund (LAIF), participation in the County of San Diego’s investment pool was requested. The San Diego County Treasurer has a pooled money fund that is managed by County investment staff with an oversight committee approving the investment policy. The fund was rated AAAf by Standard and Poor, which is the highest possible rating. The fund’s portfolio was $5.6 billion as of December 31, 2008, and is diversified among a variety of short and medium-term securities.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-07
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER WATER DISTRICT APPROVING
THE PARTICIPATION OF THE DISTRICT IN THE
COUNTY OF SAN DIEGO POOLED MONEY FUND
was adopted by the following vote, to wit:
AYES: Directors Broomell, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Polito
9. Participation in the California Federal Surplus Personal Property Program:
Through the California Federal Surplus Personal Property Program, federal surplus property can be obtained for the District’s business and operational needs once enrolled in the program. There is no cost to enroll in this program and would allow the acquisition of surplus equipment from the Federal government such as dump trucks, generators or other specialized equipment. The surplus items purchased cost 5% or more of the original acquisition cost or fair market value of the item and there are restrictions on the properties’ use and retaining it for at least 18 months before disposition.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-06
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER WATER DISTRICT AUTHORIZING
DISTRICT PARTICIPATION IN THE CALIFORNIA
FEDERAL SURPLUS PERSONAL PROPERTY PROGRAM
was adopted by the following vote, to wit:
AYES: Directors Broomell, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Polito
GENERAL MANAGER’S AGENDA
10. Review of Miscellaneous Informational Items:
• General Manager Arant stated he had attended a public hearing at the San Diego Regional Water Quality Control Board (RWQCB) regarding approval of a Marine Life Mitigation Plan as part of the Carlsbad Desalination Project’s Flow, Entrainment and Impingement Minimization Plan which was conditionally approved. The RWQCB deferred action until April 2009 on the Marine Life Mitigation Plan pending submittal by Poseidon Resources of additional information.
BOARD OF DIRECTORS’ AGENDA
11. Miscellaneous Information:
Director Aleshire announced that Greg Feik, Wastewater Systems Technician, completed the ACWA--JPIA Supervisor Basics Specialty Program which is part of ACWA-JPIA’s Professional Development Program.
A provision of the Brown Act was reviewed that stipulates that employees or officials of a local agency may engage in separate conversations or communications outside of a meeting with members of a legislative body in order to answer questions or provide information regarding a matter that is within the subject matter jurisdiction of the local agency if that person does not communicate to members of the legislative body the comments or position of any other member or members of the legislative body. However, caution was advised in engaging in such communication outside of a public meeting.
CLOSED SESSION
12. A Closed Session was called by President Broomell at 4:12 p.m. pursuant to:
• Government Code §54956.9(c) – Conference with Legal Counsel,
Anticipated Litigation
Number of potential cases: 4
RECONVENE
13. The Regular Board meeting was reconvened at 4:47 p.m. No action was reported.
ADJOURNMENT
14. Upon motion by Stone, seconded by Haskell and unanimously carried, the meeting was adjourned at 4:48 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary