July 19, 2010
VALLEY CENTER WATER DISTRICT
Regular Board Meeting
Monday, July 19, 2010
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 Diven, District Engineer Grabbe, Director of Finance Jeffrey, Manager of Accounting Pugh, Meter Services Supervisor LoPresti, Board Secretary Stetson and Manager of IT Pilve. Spectators present were: Mr. Lucia, Valley Center Fire Protection District and Mr. Ross, Valley Roadrunner Newspaper
AUDIENCE COMMENTS/QUESTIONS
Mr. George Lucia, Fire Marshal of the Valley Center Fire Protection District, addressed the Board to clarify that he had communicated the efforts of the Valley Center Fire Protection District to reduce wildfire fuel loads by cutting and chipping dead trees. He stated that the abandoned tree crops in Valley Center have created a fire hazard and he has been exploring revenue sources to assist in offsetting the cost to the farmers associated with tree clearing.
Mr. Lucia noted that the Valley Center Water and Fire Protection Districts continue to work together on community issues and he expressed his appreciation to the District for its support. Mr. Lucia stated he is continuing to explore grant funding from the Legislature for the fire suppression efforts. General Manager Arant stated that District staff can assist with communication efforts to secure funding for the fire suppression efforts. Also, the GIS aerial maps of the agricultural groves will be made available for the fire protection district’s use.
CONSENT CALENDAR
1. Upon motion by Stone, seconded by Haskell and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held July 6, 2010
• Audit demand check numbers 126195 through 126298 and wire disbursements for July 2010
• Treasurer’s Report and Financial Statements for the period ended May 31, 2010
• Quarterly report of employees’ expense reimbursements for the quarter ended June 30, 2010
ACTION AGENDA
2. Adoption of Revised Annexation Procedures, Article 220 of the District’s Administrative Code:
Proposed revisions to the District’s Annexation Procedures, as codified in the District’s Administrative Code, Article 220, had been reviewed at the July 6th Board meeting. The proposed procedures incorporate current water supply conditions, the District’s Water Supply Shortage Response Program, and clarify the responsibility of the applicant proposing to annex any territory to the District. These include a water conservation and supply demand analysis, the appropriate annexation fees and charges, and identification of new facilities and/or improvements identified by the District to be constructed at the expense of the applicant.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2010-07
ORDINANCE OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING ARTICLE 220, ANNEXATION PROCEDURES
OF THE DISTRICT’S ADMINISTRATIVE CODE
was adopted by the following vote, to wit:
AYES: Directors Broomell, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Polito
3. Review of Analysis of Reserve Levels and Capital Improvement Investments:
An analysis of the District’s Reserve Levels (Fiscal Years 2004-05 through 2009-10) and Capital Improvement Investments (Fiscal Year 2005-06 through 2009-10) was undertaken by the direction of the Board during the deliberations of the FY 2010-11 Budget. The District’s available reserve levels declined from $17.96 million at the end of FY 2004-05 to approximately $12.03 million at the end of FY 2009-10, or a reduction of 33%. The reduction in reserves is almost entirely attributed to cash financing the District’s capital improvement projects. Also, there has been no increase to the District’s local portion of the commodity rate or to the monthly service charge since 2007. During the last five fiscal years (FY 2005-06 through FY 2009-10) $9.645 million has been invested in replacement and upgrade projects with the Valley Center Road Pipeline Replacement Project representing 56% of the capital improvement project investment at $5.42 million.
A financial plan rate model was developed and the Long Range Financial Plan adopted in May of 2005 to assist in addressing the long-term financial requirements for implementing the capital improvement project plan as identified in the “2002 Water System Master Plan.” The Long Range Financial Plan set forth guidelines for accessing the debt market to fund projects to replace existing facilities and the projects needed to meet the District’s ultimate water delivery demands.
The District’s Water System Master Plan will be updated and the Long Range Financial Plan adjusted to incorporate the updates. The financial model will be populated with the updated data and used as a tool to determine funding alternatives for projects identified in the Master Plan. Options to recover reserve levels, fund capital improvement projects and funding for Federal programs matching funds requirements will be evaluated. These options may include raising rates/charges, implementing fees such as a “Capital Replacement Fee”, and accessing the debt market. The updated data will be presented to the Board in the fall of 2010.
4. Aerial Assessment of Avocado Acreage in the District:
The California Avocado Commission completed an aerial assessment of productive avocado property in North San Diego County in which the District participated with a $5,000 contribution to obtain a current assessment of avocado data in the District’s service area. The results of the aerial assessments of avocado acreage in production are:
Producing Topped Abandoned Other New Total
6,667 1,577 666 242 15 9,167
Since 2005, there has been a 24.9% drop in acreage of producing avocados. The District also obtains data on acreage under cultivation annually from participants in Metropolitan’s Interim Agricultural Water Program (IAWP) or the San Diego County Water Authority’s Special Agricultural Water Rate (SAWR). This data obtained from the growers will be further refined for improved accuracy. Such data may be beneficial to the District for completion of its Urban Water Management Plan Update and possibly being exempt from filing an Agricultural Water Management Plan if there is less than 10,000 acres of agricultural property.
GENERAL MANAGER’S AGENDA
5. Review of Miscellaneous Informational Items:
General Manager Arant provided an update on miscellaneous projects/programs, as follows:
• Water sales for Fiscal Year 2009-10 totaled 27,818 ac. ft. which is the lowest water sales since FY 1977-78 and slightly less than water deliveries in 1997 which was also a wet year.
• Negotiations between Poseidon Resources and the San Diego County Water Authority for the proposed Desalination Plant in Carlsbad are proceeding and a term sheet is expected to be presented to the San Diego County Water Authority Board members at their July Board meeting. The term sheet sets forth the basic components of the contract for the desal. plant, and, if approved, is used as the framework for the contract between Poseidon and the San Diego County Water Authority. A signed agreement for the desal. project may be executed by the fall of 2010.
• Meetings with stakeholders pursuant to San Diego Gas & Electric’s Fire Safety Emergency Plan are continuing. Water agencies, including the San Diego County Water Authority, are now meeting with SDG&E directly. The District’s system is being mapped with SDG&E’s circuit data to determine impacts upon our system if a circuit is shut off. This data will be used to develop emergency power requirements for the different circuits to secure water deliveries. SDG&E has been installing weather stations within each of its circuits to obtain specific weather conditions that will be utilized when SDG&E is considering shutting off power due to the weather. SDG&E has identified its central circuits in Valley Center, Ramona and Fallbrook and have reinforced electrical service facilities in these areas. As such, with the electrical facilities’ improvements in Valley Center, the District’s Betsworth Pumping Station is no longer on SDG&E’s critical list. The circuits that may be affected by a shut-off during emergency conditions are these communities’ periphery areas. At this time, 3 of the District’s pumping stations may be at risk of having electrical service curtailed by SDG&E during certain weather conditions, and the facilities for emergency power for these stations will be determined.
• The contract for Federal advocacy services with Howells Government Relations has been signed. An initial meeting will be held next week to establish the strategy for advocacy services to secure Federal funding opportunities.
• General Manager Arant will be meeting with members of the Valley Center Planning Group and the North County Times Editorial Board to discuss the proposed Accretive development in order to provide clarification on the availability of water and sewer services for this property.
• A meeting has been scheduled with a representative from a company that markets solarized floating reservoir covers. This reservoir cover with solar panels may be feasible for Country Club and Lilac Reservoirs which need to have their covers replaced.
• A meeting was held last week with Jeff Kightlinger, General Manager of the Metropolitan Water District, regarding the high TDS levels in the water supply that are affecting agriculture. The higher TDS levels are due to increased water deliveries from the Colorado River to our region. An increased allocation from the State Water Project system may decrease the water supply’s TDS levels.
DISTRICT GENERAL COUNSEL’S AGENDA
6. Court Hearing on the Bay-Delta Pumping Restrictions:
Warren Diven, General Counsel, reported that the Motion for Summary Judgment in the Delta Smelt case concerning the validity of the biological opinions, which restricted the pumping on the Bay-Delta, was heard last week, and Judge Wanger has taken the matter under consideration. A decision is likely by August 2010.
CLOSED SESSION
7. A Closed Session was called by President Broomell at 3:02 p.m. pursuant to:
● Government Code §54956.8 – Real Property Transaction, Conference
with Negotiator
Property: 30230 Yellow Brick Road, Valley Center, CA
27225 Kiavo Drive, Valley Center, CA
Agency Negotiator: Gary T. Arant, General Manager
Negotiating Party: New Cingular Wireless PCS, LLC and
TMO CA/NV LLC
Under Negotiation: Terms of Leases
• Government Code §54956.9(c), Conference with Legal Counsel, Anticipated
Litigation
Number of potential cases: 1
• Government Code §54956.9(a), Conference with Legal Counsel, Existing
Litigation
Name of case: Harbor Bay, Inc. v. Valley Center Municipal Water District
San Diego Superior Court
Case No. 37-2010-00050483-CU-BC-NC
RECONVENE
8. The Regular Board meeting was reconvened at 3:35 p.m. and the following action was reported:
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolutions, entitled:
RESOLUTION NO. 2010-32
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
APPROVING A COMMUNICATIONS SITE LICENSE
AGREEMENT BETWEEN VALLEY CENTER MUNICIPAL
WATER DISTRICT AND NEW CINGULAR WIRELESS PCS, LLC,
AT PARADISE MOUNTAIN RESERVOIR AND AUTHORIZING
THE GENERAL MANAGER TO SIGN
RESOLUTION NO. 2010-33
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT APPROVING
THE SECOND AMENDMENT TO THE SITE LICENSE AGREE-
MENT BETWEEN THE DISTRICT AND TMO CA/NV LLC fka
PACIFIC BELL WIRELESS LLC AT PARADISE MOUNTAIN
RESERVOIR AND AUTHORIZING THE GENERAL MANAGER TO SIGN
were adopted by the following vote, to wit:
AYES: Directors Broomell, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Polito
ADJOURNMENT
9. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 3:38 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary