September 20, 2010
VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, September 20, 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, Polito, Aleshire, Stone and Haskell. Staff members present were: General Manager Arant, General Counsel de Sousa, District Engineer Grabbe, Director of Operations Hoyle, Manager of Accounting Pugh, Board Secretary Stetson, IT Specialist Pham, and Project Manager Carrillo. No Spectator was present.
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 September 7, 2010
• Audit demand check numbers 126749 through 126884
• Report of Capital Improvement Projects completed in Fiscal Year 2009-10
ACTION AGENDA
2. Resolution Agreeing to Terminate the Water Purchase Agreement with Poseidon Resources:
General Manager Arant reported that the San Diego County Water Authority adopted the Term Sheet for the “Proposed Water Purchase Contract, Carlsbad Seawater Desalination Project” in July 2010 pursuant to initiating negotiations between Poseidon and the San Diego County Water Authority. The Term Sheet specifies that prior to commencement of negotiations between Poseidon and the San Diego County Water Authority, Poseidon and all Member Agencies agree to terminate all existing agreements with each other relating to the Project. The San Diego County Water Authority has requested that each agency that has contracted with Poseidon for desalinated water from the Carlsbad/Poseidon Desalination Plant take formal action to terminate such agreements. Said termination of the agreement would be on or prior to the date of any water purchase contract between the San Diego County Water Authority and Poseidon as contemplated by the Term Sheet. General Manager Arant noted that the City of Carlsbad is continuing to negotiate with Poseidon and is requesting pricing consideration for the desalted water from the plant that is not acceptable to the member agencies of the San Diego County Water Authority.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2010-37
A RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT AGREEING
TO TERMINATE THE AMENDED WATER PURCHASE
AGREEMENT WITH POSEIDON RESOURCES (CHANNELSIDE) LP
FOR THE DIRECT PURCHASE OF 7,500 ACRE FEET OF
DESALTED SEAWATER FROM THE PROPOSED POSEIDON/
CARLSBAD SEAWATER DESALINATION PROJECT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
3. Request to Defer Reservoir Cover Replacement Project at the Country Club Reservoir and to Fund Interim Repairs:
In the District’s Fiscal Year 2010-2011 budget, $2,015,000 was allocated for the replacement of the Country Club Reservoir’s cover with a new floating cover. However, due to uncertainty regarding water commodity revenues, it is felt it would be prudent to defer this cover replacement project and instead complete interim remedial repairs. The cost of this interim work was estimated between $150,000 and $200,000 and it’s estimated it will extend the life of the Country Club Reservoir’s truss system a minimum of five years. Also, the potential for State Revolving Funds for the Country Club Reservoir cover replacement project could be pursued in the interim.
District Engineer Grabbe explained that the 10 million gallon (MG) Country Club Reservoir was constructed in 1975 and is the main storage facility for the District’s 1210 service zone. This area of the District has remained largely agricultural and is also served by the Hauck Mesa (.55 MG) and the Old Country Club (.5 MG) Reservoirs.
If the interim repairs for the Country Club Reservoir are approved, the remaining budgeted funds could be allocated for replacement of the floating covers at Lilac Reservoir (1990), Cobb Reservoir (1992) and the Cool Valley Reservoir (1992) which are showing signs of deterioration and will likely need to be replaced within the next five years.
Project Manager Carrillo provided pictures of the interior of Country Club Reservoir which showed several deteriorated steel trusses as well as the lateral supports between the trusses. The proposed repair work of the Country Club Reservoir’s existing truss system will be to sections that show deterioration. The project is expected to be completed by the end of January 2011.
The District has not elected to include reservoir structures under its property insurance coverage. This practice will be fully evaluated for further consideration.
Upon motion by Stone, seconded by Polito and unanimously carried, the Board approved deferring the replacement of the existing Country Club Reservoir cover as approved in the Fiscal Year 2010-2011 budget and to fund interim repairs to the reservoir’s existing truss system at an approximate cost of $150,000 to $200,000.
GENERAL MANAGER’S AGENDA
4. Review of Miscellaneous Informational Items:
• Telephone System - The new telephone system has been ordered and is expected to be installed by the beginning of December. Meetings are being held with staff members regarding the proposed automated phone protocol which will be presented to the Board for review. As proposed, the automated system’s menu selection will be concise for the caller to quickly make a selection and reach the department he/she desires. The phone system will have back-up numbers to automatically transfer a caller in the event the number called is busy. With the new phone system, employees will have direct phone numbers and the department’s phone numbers will be printed on publications and mailings so that the caller directly reaches the appropriate department bypassing listening to the menu choices. For example, the water bills and payment due notices will be printed with Finance’s phone number so that the customers with questions on their bills will directly reach the appropriate Finance personnel when calling. The new phone system will also allow for more advanced features such as an interface between the phone and customer data base.
• Stormwater Runoff Monitoring - The San Diego Regional Water Quality Control Board adopted “Conditional Waiver No. 4” which requires all agricultural operators to complete runoff water sampling, testing and reporting. Agricultural operators must comply themselves or form or join a monitoring group to monitor water quality compliance and report to the Regional Water Quality Control Board (RWQCB) by December 31, 2010. Testing involves selecting sampling sites downstream from farms in watersheds, taking water samples and testing for compliance and reporting the data to the RWQCB.
The San Diego County Farm Bureau created a monitoring group, the San Diego Region Irrigated Lands Group, which is only available to its members. The Rainbow Municipal Water District formed a monitoring group for its growers and a few agricultural customers in the District’s service area that are not members of the San Diego County Farm Bureau have inquired if the District will also be forming a monitoring group. General Manager Arant stated that he would not recommend that the District form a monitoring group for its agricultural customers for growers’ compliance with the RWQCB’s Conditional Waiver No. 4 Best Management Practices as it is available through the San Diego County Farm Bureau’s monitoring group and the required testing, filings (Storm Water Management Plans) and enforcement would be burdensome.
DISTRICT GENERAL COUNSEL’S AGENDA
5. Updates:
General Counsel de Sousa reported that the Legislature enrolled 762 bills to the Governor which are awaiting his signature or veto. The deadline to take action on the bills is September 30th or, if no action is taken on a bill, it becomes law. A summary of the bills that affect the District will be provided.
BOARD OF DIRECTORS’ AGENDA
6. Customer Service:
Director Aleshire reported that he had attended, along with the General Manager, a meeting arranged by the Deer Springs Fire Protection District in which an overview of the different water agencies’ policies that provide service in its fire services boundaries was provided. It was an informative meeting which was also attended by representatives from the Rainbow, Rincon del Diablo and Vallecitos Water Districts. Director Aleshire stated that the letter commending Tony Lo Presti, Meter Services Supervisor, from the Valley Center Fire Protection District, and the report from ACWA-JPIA regarding its recent risk assessment visit reinforces the District’s employees’ level of dedication and pride of work.
ADJOURNMENT
7. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 3:08 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary