VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, February 5, 2007
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, Stone and Haskell. Director Aleshire was absent. Staff members present were: General Manager Arant, General Counsel Diven, Director of Finance Jeffrey, District Engineer Grabbe, Pumps and Motors Supervisor Stetson, Board Secretary Stetson, Project Manager Kilwein, and IT Specialist Rivard. Spectators present were: Messrs. Hilbig, Belanich, Lewis, Flynn, Ross and Eastman.
APPROVAL OF AGENDA
1. Upon motion by Stone, seconded by Haskell and unanimously carried, the Consent Calendar Item No. 3, Spanish Trails Subdivision line extension project (TM5173) for concept approval, was moved to be considered as a separate action under the Action Agenda.
CONSENT CALENDAR
2. Upon motion by Stone, seconded by Haskell and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held January 29, 2007
• Morlock waterline extension project (TPM 15662) consisting of approximately 800 linear feet of 8-inch pipe and associated appurtenances
• Notice of Completion filed for the Mountain Meadows #1 Reservoir repainting exterior and interior project
• Audit demand check numbers 112048 through 112161
• Treasurer’s Report and Financial Statement for the period ended December 31, 2006
• Board of Director’s request for per diem compensation and reimbursement of expenses
ACTION AGENDA
3. South Village Water Reclamation Project, Status Report and Proposal for Overall Project Approach:
Project Manager Dianne Kilwein provided an overview of the proposed South Village Water Reclamation Project to provide interested property owners in the South Village with wastewater service through an expansion of the Woods Valley Ranch Water Reclamation Plant. Recognizing the project participants’ varying developments’ status and timing issues, as well as financial issues, staff outlined the following phased projects for said expansion project for the property owners:
Phase I Woods Valley Ranch Reclamation Plant which is currently under construction and estimated to be operational by March 1, 2007.
Phase II Bell Enterprises, Alti Corporation and interested property owners in the South Village Area (Assessment District financing)
Phase III John Belanich (Orchard Run)
The overall expansion project’s phased approach was presented as described below:
Phase II:
Phase II treatment plant expansion would meet the wastewater capacity requirements of the Bell/Alti and interested property owners in the South Village Area based upon the current Country Town zoning, or approximately 300-350 EDUs.
Bell/Alti would fund the project’s design and initial construction in which costs expended would be reimbursed upon formation of the assessment district. The bond proceeds would also be used to finance construction of other project components such as the collection system, reclaimed water distribution facilities and wet-weather/seasonal storage for the other properties.
The interim Woods Valley Ranch treatment plant may be utilized for treatment capacity needs prior to completion of the expansion project.
Phase III:
John Belanich (Orchard Run) would design and construct the Phase III (308 EDU) Treatment Plant expansion to meet the needs of the Orchard Run Development and 8 EDUs for the Valley Center Parks and Recreation District.
As with the Phase II expansion project, the interim Woods Valley Ranch Treatment Plant may be utilized to accommodate the needs of the Orchard Run development that are in advance of the Phase III expansion project.
Staff clarified that use of the Woods Valley Ranch Interim Treatment Plant by either Bell, Alti and/or Orchard Run would be arranged between the property owners and Newland, the developer of the Woods Valley Ranch development and owner of the interim plant. Arrangements would include removal of the interim plant when it is no longer needed at the site.
The refund of deposits ($1,000 deposits totaling $18,000) previously received from property owners who elected to not continue with the proposed wastewater expansion project was proposed. These property owners had previously deposited $1,000 as an indication of interest but have since decided to not pursue participation in the expansion project. In addition, the deposits received from property owners outside of the South Village Planning Area will be refunded and informed that if written approval is received from the County Department of Planning & Land Use by June 1, 2007, for the property to receive wastewater service, the capacity reservation and deposit can be resubmitted to the District for participation in the wastewater expansion project.
A letter will be mailed to property owners in the South Village Planning Area reiterating the opportunity for inclusion in the proposed wastewater expansion project. Also, participants in the expansion project will have the opportunity to expand their requested capacity levels (based on current zoning). These opportunities will be available for a limited period of time.
If the overall project approach as outlined for the wastewater expansion project for the South Village Area is approved by the Board, staff will endeavor to:
~ Complete the Project Master Plan
~ Initiate the programmatic EIR
~ Develop the various facility and development agreements
~ Oversee and coordinate design of the Phase II and III expansions
~ Conduct the preliminary legal and financial work for formation of an assessment district
Upon motion by Stone, seconded by Haskell and unanimously carried, the Board approved the phased project approach for the wastewater expansion project for the South Village Area as presented by staff, proceeding with the project’s implementation, refunding the previously received $1,000 deposits to property owners who have chosen to not participate, return the deposits received from properties outside of the South Village Planning Area and offer the opportunity to property owners in the South Village Area to initiate or increase participation in the expansion project.
4. Request for Concept Approval of the Spanish Trails Subdivision Line Extension Project:
Concept approval of the Spanish Trails Subdivision line extension project consisting of approximately 16,500 feet of 8” water main, 5,300 feet of 12” main, 2,700 feet of 16” main and appurtenances and the District’s participation in upsizing of a portion of the planned facilities were requested.
The Spanish Trails development encompasses 435 acres in which 162 residential homes on 2 acre minimum sized lots are proposed. A Preliminary Design Report has been submitted for the project for the District’s review, and the following modifications proposed:
● 24-inch McNally Feeder – Of the District’s 24-inch McNally Feeder located in the subdivision’s property, most will be protected and subdivision roads constructed along its alignment. Less than 200 feet of the pipeline will need to be relocated due to the proposed project improvements, which will be funded by the developer.
● Dedication of Easements for Future Line Extensions – Developer will grant easements to the District from Street L and Street A to the subdivision’s boundary to facilitate future connection to Hilldale Road upon development of adjacent properties.
● Oversizing of 8-inch Pipeline – Oversize approximately 5,300 feet of the development’s planned 8-inch pipeline to a 12-inch pipe to provide additional capacity to the overall system. The additional cost for the required upsizing is $155,000 which will be reimbursed to the developer by the District.
● Water Main in Cole Grade Road – The County is requiring improvements to Cole Grade Road from Miller Road to Cool Valley Road as part of approval of the Spanish Trails subdivision. It is not known at this time if the required road improvements will impact the District’s existing 14” pipeline in Cole Grade Road and if the developer will need to pay for any needed pipeline relocations. However, the District has been replacing and upsizing portions of the existing 14-inch pipeline in Cole Grade Road to a 16-inch pipeline as various road improvement projects have occurred. As such, staff recommended replacing the portion of 50-year old pipe in Cole Grade Road between Miller and Cool Valley Roads (2,700 feet) with a 16-inch pipe before the proposed road improvements to be completed by the project’s proponents are finished. Allocation of the costs for the pipeline replacement in Cole Grade Road, either developer fully funded, partially funded or fully funded by the District will be determined once the County establishes the developers’ responsibility for improvements to Cole Grade Road. At present, the cost to install 2,700 feet of 16-inch pipeline is estimated at $570,000.
Upon motion by Polito, seconded by Stone and unanimously carried, the Board granted concept approval of the Spanish Trails Subdivision Line Extension Project per the amended Preliminary Design Report and approved and authorized the General Manager to enter into a District Facilities Agreement with the owner of the Spanish Trails Subdivision property setting forth the District’s participation for required oversizing of facilities.
5. Award of Contract for the McNally Reservoir External Stairway and Repainting of its Exterior and Interior:
Bids were opened on January 17, 2007, for the repainting (exterior and interior), and external stairway construction for the McNally Reservoir with the lowest bid received from RPI Coating, Inc. at $341,300.
Pump and Motor Supervisor Stetson explained that upon inspection of the reservoir’s exterior coatings, the paint manufacturer will not warranty their product to be applied over the reservoir’s existing layers of paint and it was recommended to remove the existing layers of paint for the paint to be applied to adhere properly. In addition, the old primer paint has a high lead content which involves more expensive abatement measures. These factors resulted in a higher bid price than had been budgeted ($195,000) for the project.
Staff recommended adoption of Resolution No. 2007-04 to award the contract for the McNally Reservoir repainting project and external stairway construction to RPI Coating, Inc., and approve a transfer of $146,300 from the Via Cantamar Pump Station Account (01-5686.78) to the McNally Reservoir Account (01-5635.78).
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-04
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT AMENDING
THE 2006-08 BUDGET BY APPROPRIATING AN ADDITIONAL
$146,300 INTO ACCOUNT #01-5635.78 AND AWARDING
CONTRACT FOR INSTALLING EXTERIOR STAIRWAY AND REPAINT-
ING THE EXTERIOR AND INTERIOR OF MCNALLY RESERVOIR
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
6. Award of Contract for Mizpah Reservoir Repainting Project:
Bids were received and opened for the Mizpah Reservoir Interior and Exterior Repainting project in which the lowest bid received was submitted by RPI Coating, Inc. at $105,925. Award of contract for this project to RPI Coating was recommended in which staff noted that this firm has completed several projects for the District in a satisfactory manner.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-05
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AWARDING CONTRACT FOR REPAINTING THE
EXTERIOR AND INTERIOR OF MIZPAH RESERVOIR
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
BOARD OF DIRECTORS’ AGENDA
7. San Diego County Water Authority’s Board of Directors’ Meeting:
General Manager Arant reported that at the January 25th Authority Board meeting, contracts were awarded for pipeline repair work on its aqueducts. The SDCWA has been experiencing failures from corrosion on some of its pre-stressed concrete pipe. The District’s main supply from the connection on the Authority’s 1st aqueduct, which is a concrete cylinder pipe, is not experiencing breaks. The Authority’s CIP for pipeline replacements totals approximately $450 million.
Lining of the Coachella Canal has been completed but issues are pending between the Authority and the Coachella Valley Water District regarding cost over runs. The All American Canal lining project was halted by a federal appeals court order. This canal lining project had been challenged by a coalition of Mexican business interests and California environmental groups. A bill was signed by Congress that reaffirms Congress’ support for the canal lining project and that Congress rather than the courts has the authority to deal with international treaties and whether water seeping out of the All American Canal belongs to Mexico or the United States. Arguments will be heard by the U.S. Ninth District Court of Appeals. Contracts had been awarded for the canal lining project. The court action to enjoin the All American Canal lining project will have significant financial impacts upon the San Diego County Water Authority as the contractors will be compensated for impacts associated with the delay.
The San Diego County Water Authority and the Imperial Irrigation District are negotiating the socio-economic impact upon Imperial Valley as a result of the water transfer agreement. And, the Authority is continuing to prepare for the price reset process which will determine the value of the transferred water as is stipulated in the agreement to be initiated upon the 5th year of the agreement.
8. Review of Miscellaneous Informational Items:
• Solar Project – The agreement with WorldWater & Power for a power purchase lease in which WorldWater & Power would construct, operate and maintain a solar power facility at the District’s Lake Turner property and supply power to the Betsworth Pumping Station has been reviewed with counsel and the modified agreement forwarded for comment. WorldWater & Power has extensive experience in the private sector and on the east coast. Their bid is competitive and they have the exclusive technology that allows the solar system to continue to operate and provide energy to the pump station in the event of a power outage. To be determined is who will have the rights to the environmental credits from this solar project.
• Freeze Response Plan – Due to the recent freeze, its impact on crops and anticipated drop in water revenue, staff has been analyzing the District’s capital improvement programs to identify programs that can be deferred. Projects that will continue to be pursued as they will result in long-term savings are: the pump and electrical control systems replacements, SCADA system, and the automated meter reading (AMR) replacement program. The District had anticipated selling bonds to finance its capital projects in the spring but may defer going to the debt market.
BOARD OF DIRECTORS’ AGENDA
9. Recognition from ACWA-JPIA:
A letter was received from the ACWA-JPIA Senior Risk Management Consultant recognizing the District for its safety programs and that its reduction in insurance claims and excellent experience modifier ratings for our Liability Program and Workers’ Compensation will result in reduced premiums. District employees were complimented for serving as JPIA trainers and conducting safety classes.
ADJOURNMENT
10. Upon motion by Haskell, seconded by Stone and unanimously carried, the meeting was adjourned at 3:06 p.m.
ATTEST: ATTEST:
______________________________ _______________________________
President Secretary