VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, June 4, 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, Director of Operations Hoyle, District Engineer Grabbe, Acting Board Secretary Johnson, IT Specialist Learue, Project Manager Kilwein, Manager of Accounting Pugh, Accounting Specialist Masley, and Sr. Administrative Assistant Olson. Spectator present was: Mr. Dave Ross, Valley Roadrunner Newspaper.
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 May 21, 2007
· Audit demand check numbers 113526 through 113792
· Quitclaim of easement to Daughtery consisting of a portion of easement recorded October 18, 1956 in Book 6341 at Page 219
· Resolution No. 2007-25 setting the District’s 2007-08 appropriation limit at $4,375,795 for proceeds from taxes, per Article XIIIB of the State Constitution
PUBLIC HEARINGS
2. Public Hearing to Consider Adoption of District-Wide Water Availability Charge for Fiscal Year 2007-08:
President Broomell opened the public hearing to receive input on the proposed District-wide water availability charge for Fiscal Year 2007-08 at 2:02 p.m. Director of Finance Jeffrey explained that the public hearing on the proposed $10.00 per acre availability charge for Fiscal Year 2007-08 is conducted to receive written and oral public testimony. Notices on the proposed water availability charge had been published and posted. New property owners since the assessment of the charge the prior fiscal year received notification by direct mail.
The proposed $10.00 per acre/$10.00 per parcel minimum water availability charge will generate approximately $593,200 and is planned to be used for revenue debt service ($109,578), with the remainder ($483,622) used for ongoing capital requirements. The District expects to issue debt for capital projects in 2007-08 and will designate the water availability charges as revenue for the annual payments of this debt. Said water availability charge has been collected annually since Fiscal Year 1995-96. Director of Finance Jeffrey noted that the proposed water availability charge is the equivalent of a $13.07 per acre foot increase in the selling price of water, or an average increase of $5.63 to the monthly fixed meter charge.
As of the date and time of the public hearing, no protests had been received for the District-wide Water Availability Charge for Fiscal Year 2007-08.
The public hearing on the proposed Fiscal Year 2007-08 District-wide water availability charge was closed at 2:08 p.m.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2007-08
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ESTABLISHING WATER AVAILABILITY CHARGES FOR
2007-2008 ON ALL PROPERTY WITHIN THE DISTRICT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
3. Public Hearing on the Woods Valley Sewer Service Area’s Annual Sewer Service Charge:
The public hearing on the Woods Valley Sewer Service Charge was opened at 2:09 p.m. Director of Finance Jeffrey reviewed that in July 2002, the property owners within the Woods Valley Sewer Service Area approved the Woods Valley Sewer Standby Fee and Sewer Service Charge. The standby fee and service charge finance the operation, maintenance and replacement of the Woods Valley Ranch Water Reclamation Facility. It was explained that undeveloped property is assessed the standby fee and developed property assessed the service charge. There are currently 252 developed properties within the Woods Valley sewer service area using a total of 252 EDUs.
The 2007-08 budget for the Woods Valley Ranch Water Reclamation Facility requires revenue of $331,296. As such, the proposed assessment for the Woods Valley Sewer Service Charge is $1,183.20 per EDU, or $98.60/month which is detailed in an annual report listing the parcels and respective sewer service charge. The remaining balance would come from the Sewer Standby Fee which will be presented as a separate item.
Collection of the sewer service charge through an assessment on the property tax bill was recommended. If a majority protest to the sewer service charge is received, the charge may not be collected on the tax roll, but rather would be billed each month on the water bill. No protests to the proposed Woods Valley Ranch Sewer Service Charge to be collected by the County of San Diego with the property taxes were received. The public hearing was closed at 2:20 p.m.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-23
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING THE WOODS VALLEY SEWER SERVICE CHARGE
ASSESSMENT FOR 2007-2008 ON PROPERTY WITHIN
THE WOODS VALLEY SEWER AREA ON THE
SAN DIEGO COUNTY SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
ACTION AGENDA
4. Resolution to Set the Woods Valley Annual Sewer Standby Fee for Fiscal Year 2007-08:
Adoption of Resolution No. 2007-24 to set the Woods Valley Sewer Service Area Sewer Standby Fee for Fiscal Year 2007-08 was requested. Director of Finance Jeffrey noted that in July 2002, following a public hearing, the property owners within the Woods Valley Sewer Service Area approved the Woods Valley Sewer Standby Fee and Sewer Service Charge which finance the operation, maintenance and replacement of the Woods Valley Ranch Water Reclamation Facility. Undeveloped property within the Woods Valley Ranch Sewer Service Area is assessed the Standby Fee which insures that the developer and interim builders pay their share of the cost of the sewer operation, including future replacement. There are currently 19 undeveloped parcels, one being the golf course club house, with a total of 28 EDUs.
The budget for the Woods Valley Ranch Reclamation Facility for Fiscal Year 2007-08 requires revenue of $331,296 in which a Standby Fee of $1,183.20/EDU or $98.60/month will be assessed. The Woods Valley Annual Sewer Standby Fee will be assessed on the property tax bills.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-24
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING THE WOODS VALLEY SEWER STANDBY FEE
ASSESSMENT FOR 2007-2008 ON PROPERTY WITHIN
THE WOODS VALLEY SEWER AREA ON THE
SAN DIEGO COUNTY SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Adoption of Fixed Charge Special Assessments for Assessment District 96-1 and Authorization to Lien Parcels for Unpaid Water and Other Services:
Resolution No. 2007-26 was presented by Director of Finance Jeffrey establishing the District’s fixed charge special assessments for Assessment District 96-1 (Treasures at Castle Creek – improvements to the Lower Moosa Canyon Wastewater Treatment Facility) and authorizing the District to add delinquent and unpaid charges for water and other services on the tax roll for 2007-08.
An assessment on the 200 parcels in Assessment District 96-1 of $742.52 per parcel for 2007-08 is needed to meet the principal and interest obligations of the bonded indebtedness. The Water Code authorizes the District to add delinquent and unpaid charges for water and other services to the property taxes of the property using the water or service. The delinquency must be unpaid for at least 60 days and have had a lien recorded against the property. Three parcels (185-260-37, 185-380-04 and 186-042-18) with a total delinquency of $18,754.92 are eligible to be placed on the tax roll.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-26
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING FIXED CHARGE SPECIAL ASSESSMENTS FOR 2007-2008
ON PROPERTY WITHIN ASSESSMENT DISTRICT NO. 96-1 AND ON
PROPERTY FOR UNPAID CHARGES FOR WATER AND OTHER SERVICES
PURSUANT TO STREETS AND HIGHWAYS CODE SECTIONS 8680
AND 8682 AND WATER CODE SECTIONS 72094, 72100, 72102
ON THE SAN DIEGO COUNTY SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
6. Audit Contract for Fiscal Year 2006-07:
Leaf & Cole, LLP submitted a proposal to perform the audit of the District’s financial statements for year ending June 30, 2007. Their proposed fee of $19,200 reflects a 3.8% increase from the prior year’s base fee. A written Management Letter, in accordance with generally accepted auditing standards, will be provided. Adoption of Resolution No. 2007-27 to authorize Leaf & Cole to perform the annual audit of the District’s financial statements for Fiscal Year 2006-07 was recommended.
Director of Finance Jeffrey noted that approval of this contract will make FY 06-07 Leaf & Cole’s fifth year as auditor. As was discussed when the District first contracted with them, after five years the District will consider going out for bids.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-27
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ENTERING INTO AN AGREEMENT WITH LEAF & COLE, LLP
TO AUDIT THE FINANCIAL STATEMENTS OF THE DISTRICT
FOR THE YEAR ENDED JUNE 30, 2007
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
7. Resolution Authorizing the Allocation of Additional Funds for Participation in the Live Oak Ranch Project:
Project Manager Kilwein presented a request to allocate an additional $288,400 for participation in the Live Oak Ranch project bringing the total District participation amount to $760,000.
In November 1998, the Board granted conceptual approval for the Live Oak Ranch project approving participation in relocating, replacing and oversizing specific facilities. Concept approval was later modified in August 2005 due to changes that had occurred since initial approval and to list specific criteria for the District’s participation. The FY 2006-08 budget was prepared based on the anticipated participation costs and the developer’s proposed construction schedule at that time. In preparing the District Facilities Agreement with the developer, MSK, staff determined the budget allocation did not include participation costs for a portion of facilities proposed for 07/08, nor for future phases. The following table shows the District’s total anticipated share and the requested change over the previously approved budget amount:
|
Live Oak Ranch District Participation |
|||
|
Phase 1 & 2 |
Previous |
Proposed |
Change to Dist. Share |
|
16” VC Rd & Cobb Lane |
$266,000 |
$266,900 |
$900 |
|
16” Cobb Lane (Shared) |
0 |
86,200 |
86,200 |
|
Song Sparrow & Ringtail Place |
46,000 |
46,000 |
0 |
|
Extend 12” to Rose Bush Lane |
159,600 |
138,000 |
-21,600 |
|
Future Phases 3 & 5 |
|
|
|
|
16” Cobb Lane (Shared) |
0 |
222,900 |
222,900 |
|
Project Total |
$471,600 |
$760,000 |
$288,400 |
Additional funds for participation in the Live Oak Ranch Project are currently available from funds approved with the Fiscal Year 2006-08 budget within the Participation, Upsizing and Unspecified Replacement Project Account (01-5602.78).
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-29
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AUTHORIZING THE ALLOCATION OF AN ADDITIONAL $288,400
WITHIN THE PARTICIPATION, UPSIZING, AND UNSPECIFIED
REPLACEMENT PROJECT ACCOUNT (NO. 01-5602.78) FOR
PARTICIPATION IN THE LIVE OAK RANCH PROJECT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
8. Resolution to Adopt the National Incident Management System (NIMS):
Sr. Administrative Assistant Olson reported that as a result of Homeland Security Presidential Directive (HSPD-5), the Department of Homeland Security (DHS) was required to develop a system that provides nationwide standards for domestic incident response. The National Incident Management System enables federal, state and local governments, along with private-sector and nongovernmental organizations, to work together effectively and efficiently to prepare for, prevent, respond to, and recover from domestic incidents. NIMS provides a common foundation for training, communicating, sharing information and ordering resources with other responders.
NIMS is very similar to the Standardized Emergency Management System (SEMS), adopted throughout California in the 1990’s. The biggest difference is the certification and qualification standards for employees. All District employees must be trained on a basic level if they will be responding to an emergency. Ms. Olson will be attending “Train the Trainer” classes and will attempt to do all of the training required in-house. All local governments and special districts must adopt NIMS by resolution to be eligible for federal disaster funds (FEMA).
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-17
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
FOR THE ADOPTION OF THE NATIONAL INCIDENT MANAGEMENT SYSTEM
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
9. Resolution to Support the Nomination of Director Aleshire for ACWA Region 10 Chair for 2008 & 2009:
ACWA has announced that it is time to start accepting nominations for the election of officers for the 10 Regions across the state. Dr. Aleshire is currently the Vice Chair of Region 10 and previously served time as the Chair for an unfulfilled term. He has expressed an interest in running for Chair of Region 10 for the 2008 & 2009 term. To be eligible for possible nomination, potential candidates must have the formal support of their respective sponsoring member agency.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2007-28
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING IN NOMINATION MERLE J. ALESHIRE AS
A MEMBER OF THE ASSOCIATION OF CALIFORNIA
WATER AGENCIES REGION 10 CHAIR
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
GENERAL MANAGER’S AGENDA
10. Review of Miscellaneous Information Items:
· General Manager Arant reported that the All American Canal Lining Project is now moving forward. An appeal filed by the City of Calexico has been denied and the contractor has begun work. The estimated cost of the Coachella Canal and All American Canal lining projects is $330,000,000. The Coachella Canal portion is complete.
· The Department of Water Resources’ decision to stop the pumps at the Banks Pumping Plant on the south end of the Delta is not related to any of the pending court actions. This was a voluntary decision on the part of DWR to halt the pumps because 500-600 smelt have settled themselves in front of the pumps. Because of the issue of the smelt’s decline, the potential for them becoming extinct in the Delta, and the pending court cases, DWR decided to shut the pumps off voluntarily. DWR hopes to turn the pumps back on in 7-10 days if the smelt move away. The increased temperature of the water in front of the pumps should encourage them to move on to colder water.
The State Court will be ruling on whether the DWR has adequate permits under the California Environmental Quality Act. There are parallel issues in various Federal Courts challenging federal biological opinions, and another pending court action concerning winter run salmon.
There is a great deal of uncertainty currently surrounding our water supply. Information from MWD states that they can sustain about a 30 day interruption in pumping from the Delta and still meet all of the water needs for 2007 because of storage south of the Delta. If the outage of the pumps goes beyond 30 days there is a possibility that they will call for extraordinary conservation, including an agricultural interruption of up to 30%. Even if the pumps come back on, the long term issue of how much water we will be able to take from the Delta in a given year because of the environmental concerns remains. We could see as much as a 40-45% reduction in the amount of water that is transported out of the Delta to Southern California, which would mean about a 25% shortfall for this region. If the pumps go back on in a reasonable amount of time, Metropolitan will be able to meet all of its delivery commitments for 2007. MWD will reexamine things in January 2008; if it looks like a dry year, they will call for additional measures.
·
The San Diego County Grand Jury issued a very complimentary report
to the San Diego County Water Authority for their Emergency Storage Project.
· A Notice of Completion for the Lake Hodges to Olivenhain Pipeline was filed. This does not include completion of the pumping/hydro station.
BOARD OF DIRECTOR’S AGENDA
11. ACWA Selection of Executive Director:
Director Aleshire participated in the interview process of the final three candidates for the Executive Director position. Timothy Quinn, who currently serves as Deputy General Manager with the Metropolitan Water District of Southern California, has an excellent background and stood out above the other candidates. He was selected as new Executive Director.
12. ACWA Board of Director’s Meeting:
·
Director Aleshire reported that Dave Kennedy gave a tutorial on
the history of the peripheral canal. It was stated that in 1962 the estimated
cost was $150,000,000.
· The state wide bond issue was discussed and the Governor’s plan which was turned down in committee. It does not look like this bond will receive support unless it has storage and conveyance through the Delta.
· ACWA will be seeking resolutions of support from water agencies tasked to educate our legislators on our water needs. They would like us to consider adding to our budget next year some small amount of money to educate the public on California’s water needs.
CLOSED SESSION
13. A Closed Session was called by president Broomell at 3:18 p.m. pursuant to:
● Government Code §54957(b)(1) – Public Employee Performance Evaluation: General Manager, and
Government Code §54957.6 – Conference with Labor Negotiator,
Unrepresented Employee: General Manager
ADJOURNMENT
14. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 4:52 p.m.
ATTEST: ATTEST:
_________________________ ________________________
President Secretary