VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, March 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, Aleshire, Stone and Haskell. Staff members present were: General Manager Arant, General Counsel Cowett, Director of Finance Jeffrey, District Engineer Grabbe, Director of Operations Hoyle, and Board Secretary Stetson. No spectators were 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 February 5, 2007
• Resolution No. 2007-07 adjusting the District’s authorized debt limits per Ordinance No. 171
• Resolution No. 2007-09 concurring in the nomination of Melody Henriques-McDonald of the San Bernardino Valley Water Conservation District to the ACWA/JPIA Executive Committee, and Resolution No. 2007-10 concurring in the nomination of Joan Finnegan of the Municipal Water District of Orange County to ACWA/JPIA Office of Vice President
• Audit demand check numbers 112162 through 112548
• Treasurer’s Report and Financial Statements for the period ended January 31, 2007
ACTION AGENDA
2. Ordinance Amending Article 172 of the District’s Administrative Code Re: Pressure Sewer Collection Systems:
Ordinance No. 2007-05 was presented for the Board’s adoption which will amend Article 172 of the District’s Administrative Code to incorporate current practices and terminology pertaining to pressure sewer collection systems. District Engineer
Grabbe explained that currently Article 172 of the Administrative Code is titled “Pressure Sewer Collection Systems” and is proposed to be changed to “Low Pressure Wastewater Collection Systems”. Proposed modifications throughout this article would change the word sewer to wastewater and reflect the change in technology of using low pressure wastewater collection systems that send both the liquid waste and solids to the treatment plant utilizing grinder pumps, as well as the continued use of Septic Tank Effluent Pump Systems.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2007-05
ORDINANCE OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER
DISTRICT AMENDING ADMINISTRATIVE
CODE ARTICLE 172 TO COMPLY WITH
CURRENT PRACTICES AND TERMINOLOGY
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
3. Amendment to Consulting Services Agreement with Marc Benner:
An agreement for engineering consulting services with Marc Benner had been executed for a three month period beginning December 2006. The contract provided for payment at the rate of $55.00 per hour with a not-to-exceed amount of $30,000 to provide assistance with updating the District’s standard specifications and design guidelines, plan checking and other engineering related tasks.
District Engineer Grabbe reported that, to date, Mr. Benner has prepared draft documents for internal review of the District’s Standard Specifications and Design Guidelines, On-Site Low Pressure Wastewater Design Guidelines and Specifications, a Sanitary Sewer Management Plan per the adopted waste discharge requirements for collection systems, and various plan check and engineering tasks.
An extension of the consulting services agreement with Mr. Benner through to June 29, 2007, for an additional 1,000 contract hours at $55.00 per hour was requested. Such an extension would allow completion of the tasks assigned and provide needed technical support for the District’s Project Managers. If approved,
the total contract amount with Mr. Benner would be $55,000. It was noted that funding would be from the various projects to which he is assigned.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-11
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING CONTRACT FOR CONSULTING SERVICES
WITH MARK BENNER
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
4. Resolution to Set the Hearing Date and Schedule of Assessments for the District-Wide Water Availability Charge for Fiscal Year 2007-08:
Resolution No. 2007-06 was presented for the Board’s consideration to set June 4, 2007, at 2:00 p.m. as the date and time for the public hearing to consider levying the proposed Fiscal Year 2007-08 district-wide water availability charge. The proposed $10.00/acre, $10.00/parcel minimum water availability charge, which has been levied since FY 1995-96, is expected to be used for:
Revenue Debt Service $109,578
Ongoing Capital Requirements 482,422
Total Water Availability Charge $592,000
A Notice of the Public Hearing on the proposed District-wide water availability charge will be published in the newspaper and property owners who changed ownership since the levy of the availability charge for FY 2006-07 will receive written notification.
Director of Finance Jeffrey noted that a public hearing will also be conducted at the June 4th Board meeting on the assessment of the Woods Valley Sewer Service Standby Fee and Service Charge which is collected on the tax roll. A Notice of this public hearing will be published in the newspaper.
Upon motion by Aleshire, seconded by Polito, the following resolution, entitled:
RESOLUTION NO. 2007-06
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT SETTING
FORTH A SCHEDULE OF WATER AVAILABILITY CHARGES
PROPOSED TO BE ESTABLISHED FOR ALL PROPERTY
WITHIN THE DISTRICT FOR 2007-08, FIXING THE TIME
AND PLACE OF HEARING AND GIVING NOTICE OF HEARING
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Haskell
NOES: None
ABSENT: None
ABSTAIN: Director Stone
5. Response to the Potential Financial Impact from the January 2007 Freeze:
In response to estimates of freeze damage to the citrus and avocado crops throughout the District’s service area of between 30% and 40% and the anticipated reduction in water demands possibly over the next one to two years, the following has been implemented:
• Eleven capital improvement projects approved in the Fiscal Years 2006-08 budget will be reduced in scope, activity suspended or project initiation deferred pending future review for a total savings from the deferred projects of $4,128,000. It was noted that work will continue on projects currently underway and maintenance/operational efficiency related projects which include the Valley Center Road Pipeline Replacement, Couser Canyon Pump Station, Via Cantamar Pump Station, pump and pump motor upgrade projects, reservoir recoating projects, SCADA and the automatic meter reading (AMR) project.
• Delay going to the debt market in which it had been anticipated that by late spring between $12 to $15 million in COP would be issued for District capital improvement projects. Staff recommended that the District delay going to the debt market until at least the fall of 2007.
• Staff positions approved in the 2006-07 budget were deferred (Construction Inspector, Engineering Technician and Construction & Maintenance Technician) as well as filling the vacated position of Sr. Human Resources Analyst was deferred, and a lower salaried Engineering Technician was hired rather than the approved Sr. Engineer position. These deferments save an estimated $390,000 in FY 2006-07. Also, a projected savings of $75,000 will be realized by reducing the overlap period for employees hired to replace the three employees retiring in calendar year 2007.
• The four positions approved to be filled in FY 2007-08 will be re-evaluated. Recommendations included:
~ Defer hiring the Administrative Assistant (Finance Department) who would function as a receptionist, cashier and provide additional customer service coverage for a cost savings in FY 2007-08 of $36,000. This position can be deferred as the remodeling of the front office and the Finance customer service division’s relocation to this area have been put on hold. The remodeling project has been deferred until at least the end of FY 2007-08.
~ Two Engineering Technician positions funded at $117,000 will be deferred pending a re-evaluation of development activity in the District’s service area. The engineering and technical support may be needed in response to the activity of projects such as the Live Oak Ranch, South Village Water Reclamation, Lilac Ranch, Spanish Trails and Orchard Run. The work load could be managed through filling some of the approved Engineering Tech. positions or through contract or consulting services. Also, a resumption of the activity on District capital improvement projects may require additional staff or consulting resources.
~ Pursue hiring of the approved Wastewater Technician position due to the increasing workload in the wastewater division. Staff noted that the Woods Valley Ranch permanent plant will be on line as well as the possibility of continuing operation of the interim facility, the Live Oak Ranch facility may be operational by the end of FY 2007-08 and there are more stringent collection system maintenance and spill prevention requirements imposed by the State Water Resources Control Board. Funds for this position come from the Moosa and Woods Valley Ranch wastewater accounts which are not impacted by a decline in water sales revenues.
General Manager Arant stated that the January 2007 freeze occurrence has resulted in uncertainty for the agricultural economy and for the District. Actions such as outlined above amount to a total deferral of $4.746 million. The District’s water sales will continue to be evaluated and by early FY 2007-08 through the end of calendar year 2007, there will be a better understanding of the extent of the short-term and potential long-term impacts from the freeze.
GENERAL MANAGER’S AGENDA
6. San Diego County Water Authority Board Meeting of February 22nd:
General Manager Arant referred to the summary of Board action taken at the Authority’s February 22nd meeting which was included in the Board package. He noted that the request to fund two new positions in the Water Resources Department for implementation of the Landscape Conservation Program was not approved but was referred to the Conservation Ad Hoc Committee for further discussion and recommendation. The City of San Diego representatives were opposed to this request and have become very cognizant of costs that will increase their rates. The request from the San Luis Rey Municipal Water District to initiate negotiations for new membership in the Water Authority was denied. The Authority’s action was to suggest that the San Luis Rey M.W.D. annex into an existing member agency of the Authority. A letter has been received from the San Luis Rey M.W.D. and resolution adopted requesting that the District open formal negotiations and discussion for inclusion of the San Luis Rey M.W.D. and adjacent area within the District’s Sphere of Influence and to support annexation of portions of the San Luis Rey M.W.D. and certain adjacent areas into the District’s service area for provision of retail water and wastewater services. This matter will be discussed at the March 19th meeting and recommendations on how to proceed will be evaluated and considered.
7. Review of Miscellaneous Informational Items:
Solar Program – General Manager Arant reported that a conference call is scheduled for Tuesday, March 6th with WorldWater & Power to discuss the proposed solar energy project at the District’s Betsworth Pump Station.
South Village Water Reclamation Project - The environmental review process for this project has begun with an initial study which will determine if a full Environmental Impact Report (EIR) or Mitigated Negative Declaration will need to be completed.
Desalination Project – Member agencies of the San Diego County Water Authority that have executed water purchase agreements with Poseidon Resources, the developer of the Carlsbad desalination plant that will produce 50 million gallons per day of potable water, include the District, Rincon del Diablo M.W.D., Carlsbad and Sweetwater Authority. Other agencies are considering entering into agreements with Poseidon which include the Olivenhain M.W.D. and Santa Fe Irrigation District. A meeting will be held with the member agencies and Peter MacLaggan of Poseidon Resources to receive a project update and discuss actions to facilitate the Coastal Commission’s permit application review. The member agencies will also discuss the San Diego County Water Authority’s policies to facilitate delivery of the desalted seawater, amendment of the Local Projects Program to qualify local seawater desal. development for assistance under this program and to pursue securing Metropolitan’s $250/ac. ft. subsidy for water development.
GENERAL COUNSEL’S AGENDA
8. Energy Lawsuit:
General Counsel Cowett reported that the 4th District Court of Appeal has issued an opinion sustaining the demurrer which stops the Energy Lawsuit. The demurrer had concluded that the lawsuit was preempted by federal law and there is no cause of action under state law or in state court. There will be a meeting to consider taking the matter to the California Supreme Court.
BOARD OF DIRECTORS’ AGENDA
9. Board of Directors’ Per Diem:
Per Board direction, the Board of Directors’ per diem is reviewed annually for consideration of modification. The Board may increase its per diem by 5% for each calendar year since the date of the last adjustment which was February 1993. As such, the Board could increase its current $100 per diem to a maximum of $198.01 per day of Board business.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the Board elected to retain its current $100.00 per diem compensation.
10. ACWA:
Director Aleshire reported that he is participating in the evaluation and revision of the ACWA salary and benefit survey for its member agencies. To encourage participation, a presentation will be given at the ACWA Spring Conference and it will be offered free of charge for the first year for ACWA members. The salary survey is expected to be available by September 1st.
ACWA Region 10 members have recommended there be a combined Regions 8, 9 and 10 seminar with the topic being Proposition 59, which is the initiative to fund a new surface storage facility. Of the proposed $3.9 billion initiative, $2 billion will be for a water storage facility. Representatives from Metropolitan Water District, the Department of Water Resources and the San Diego County Water Authority will be invited.
ADJOURNMENT
11. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 3:11 p.m.
ATTEST: ATTEST:
______________________________ _______________________________
President Secretary