VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, March 17, 2008
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, Project Manager Williams, Board Secretary Stetson and IT Specialist Learue. Staff members present for recognition of accomplishing completion of the ACWA-JPIA Professional Development Program, Supervisor Basics Specialty Program, were: Meter Department Supervisor Tony LoPresti, Meter Serviceworkers Troy Goswick and Ismael Navarro, Construction & Maintenance and Valve Technicians Cliff Reeh and John Martineau, Sr. Mechanic Roy Rutherford, Sr. Electrician Ed Olson, and Sr. Pump and Motor Technician Tom Regan. Audience members present were Mr. Dave Ross, Roadrunner Newspaper.
COMMENDATION
1. Completion of the ACWA-JPIA Professional Development Program:
The following employees were commended for completing the various courses required to obtain the Supervisor Basics Specialty Program certification, which is part of the ACWA-JPIA Professional Development Program:
Ed Olson
Tom Regan
Troy Goswick
John Martineau
Roy Rutherford
Tony LoPresti
Ismael Navarro
Cliff Reeh
Bob Panek
The courses completed as part of this Program improve safety practices and risk management efforts. As a result, the District’s Liability and Property insurance costs have decreased.
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 19, 2008
• Resolution No. 2008-11 adjusting the District’s authorized debt limits per Ordinance No. 171, effective as of January 1, 2008, to $1,983,719 per project and $2,975,587 for the acquisition and installation of water reservoirs
• Purchase Order No. 17325 to Hidden Valley Pump to purchase a new and upgraded vertical turbine pump and motor for the Lilac Pump #1 improvements for the bid price of $75,034.22
• Audit demand check numbers 117072 through 117459
• Treasurer’s Report and Financial Statements for the period ended January 31, 2008
ACTION AGENDA
2. Adoption of Resolution Appropriating Funds for the Cole Grade Road Pipeline Replacement Project;
Project Manager Williams reported that the District’s 14” diameter water main in Cole Grade Road, specifically a section of pipeline located south of Miller Road, has recently experienced three mainline breaks. Evaluation of the pipeline revealed that approximately 1,000 linear feet of pipe between Horse Creek Trail and Miller Road in Cole Grade Road has deteriorated and in need of replacement.
The water transmission pipeline in Cole Grade Road had been installed in the mid-1950s and is a major feed for the Cool Valley service area. The line has been identified in the District’s Water Facility Master Plan for replacement. Project Manager Williams reported that several sections of the pipeline have been replaced as part of a County road project, in conjunction with a private development, and as a District capital project. He noted that replacement of the Cole Grade Road pipeline had been anticipated to be completed along with the County’s road improvement project, however, the road project has been deferred.
Adoption of Resolution No. 2008-12 was recommended to amend the District’s Fiscal Year 2007-2008 budget to appropriate $225,000 for the Cole Grade Road Pipeline Replacement Project for the replacement of 1,000 linear feet of 14-inch pipe.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-12
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE FISCAL YEAR 2007-08 BUDGET
BY APPROPRIATING $225,000
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
3. Resolution to Set the Hearing Date and Schedule of Assessments for a Public Hearing to Consider the Levy of the District-Wide Water Availability Charge for Fiscal Year 2008-09:
Resolution No. 2008-10 was presented for the Board’s consideration to set June 2, 2008, at 2:00 p.m. as the date and time for the public hearing to consider levying the proposed Fiscal Year 2008-09 district-wide water availability charge. The proposed $10.00/acre, $10.00/parcel minimum water availability charge, which has been levied since 1995-96, is expected to be used for:
Revenue Debt Service $104,434
Ongoing Capital Requirements 486,566
Total Water Availability Charge $591,000
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 2007-08 will receive written notification.
Director of Finance Jeffrey noted that a public hearing will also be conducted at the June 2nd Board meeting on the assessment of the Woods Valley Sewer Service Charge which is collected on the tax roll. A Notice of this public hearing will be published in the newspaper.
No loss in the District’s property tax revenue is expected this year. However, the Legislative Analyst’ report recommends that there be no property tax allocated to enterprise special districts. The District’s property tax revenue could be reallocated by a 2/3rds approval vote of the State Legislature.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-10
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 2008-09, 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, Stone and Haskell
NOES: None
ABSENT: None
4. Affirmation of Purchase Order No. 17306 for the Replacement of the Backhoe and Report of Incentive Programs by the California Air Resources Board and San Diego Air Pollution Control District:
Director of Operations Hoyle reported that grant funds have been secured from the California Air Resources Board (CARB), Low Emissions Construction Program, that will offset the cost of replacing the District’s 13 year old 416B Caterpillar backhoe. To be in compliance with Title 13, emission standards for in-use off-road diesel fueled fleets, diesel particulate filters will need to be installed on two of the District’s existing backhoes. However, there are safety concerns regarding the installation of the diesel particulate filters on the backhoes that have been expressed to CARB. The District received notification that it will be allowed to move the grant monies for the diesel particulate filters to the backhoe replacement with a letter from the contractor verifying the safety concerns. This letter from the contractor has been received. Therefore, grant funds to offset the purchase of a new backhoe are $53,000 and $28,000 ($14,000 for each diesel particulate filter) or a total of $81,000. The installation of diesel particulate filters on off-road diesel fueled fleets is required by 2015 per Title 13, Emission Standards.
Due to the limited time period to secure grant funds under the CARB Low Emissions Construction Program for replacement of the District’s backhoe, Purchase Order No. 17306 in the amount of $84,985.66 was approved by the General Manager as an immediate non-emergency action. Board ratification of this action was requested.
Director of Operations Hoyle further reported that grant funds from the San Diego Air Pollution Control District under the Palomar Energy Mitigation Program will assist in offsetting the cost of retrofitting 6 of the District’s service trucks with diesel particulate filters. Grant funds are being awarded for early implementation of Title 13 of the California Code of Regulations, Diesel Particulate Matter Control Measures for on-road heavy duty diesel fueled vehicles owned or operated by Public Agencies and Utilities. The cost to the District is approximately $50,000.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the Board ratified the issuance of Purchase Order No. 17306 to Hawthorne Machinery in the amount of $84,985.66 for the purchase of a 2008 backhoe, the price of which will be offset by grant funds from the California Air Resources Board Low Emissions Construction Program, and approved budgeting in Fiscal Year 2008-09 for the installation of diesel particulate filters to retrofit six diesel service trucks and to pursue grant funds for the retrofitting project that are available from the San Diego Air Pollution Control District Palomar Energy Mitigation Program.
GENERAL MANAGER’S AGENDA
5. Review of Miscellaneous Informational Items:
▪ February Status Report. Water sales projections for Fiscal Year 2007-08 are 37,086 acre feet which is approximately 8,000 ac. ft. below budgeted water sales. The Automatic Meter Reading conversion program is continuing at a fast pace in which 641 meters were converted during February for a total to date of 6,625. This program is anticipated to be completed with all meters converted to AMR devices before the end of 2008.
▪ Status of IAWP. Participating customers in the Interim Agricultural Water Program (IAWP) have been required since January 2008 to cut back water usage by 30% compared to usage on the account in FY 2006-07. The recent rainfall has been beneficial to agriculturalists in meeting their water usage allocation levels. The IAWP customers that have exceeded their allocation levels (slightly less than 100) are largely those that have a small amount of plantings within the guidelines of the Program, and some nurseries. The total water usage amount that has exceeded allocations as of the end of February 2008 is approximately 16 ac. ft. Per the District’s Supply Reduction Implementation Plan, penalties will begin to be assessed as of March 2008 for any cumulative over-usage of the account’s allocation. Metropolitan Water District will assess penalty charges at the end of 2008 if the District exceeds its IAWP 2008 allocation. If the District collects penalty charges in excess of any penalties assessed by Metropolitan for over-usage, the Board will need to determine how it will manage these funds which could include it being earmarked for water reliability programs.
Director Stone inquired as to a policy concerning the sale of a new meter (M&I) to be installed on property with an existing agricultural meter that is subject to the supply cutbacks. Staff responded that water delivered through the new meter in excess of 26 HCF per month would be circumventing the regulations of the IAWP. Also, if the existing agricultural meter is a mixed agricultural/domestic account (the first 26 HCF consumed is considered domestic usage), this account would be changed to strictly agricultural. Such a situation, wherein a M&I meter is added to a property with usage through this meter exceeding that allocated for domestic use, could be cited by Metropolitan and adversely affect the future of the IAWP. As such, an application for a new meter on property with an existing agricultural meter will be withheld pending further evaluation and consideration by the Board.
▪ Wholesale Water Rate Increases. Metropolitan Water District is raising its wholesale water rates which will impact rates by 10%-11%. A combination of Metropolitan Water District’s and the San Diego County Water Authority’s rate increases will result in an increase of approximately 10% for domestic customers and a 14% increase to agricultural rates. These increases will become effective January 2009.
BOARD OF DIRECTORS’ AGENDA
6. ACWA/JPIA:
Director Aleshire reported that the District’s premium for its workers’ compensation insurance coverage through ACWA/JPIA will be reduced as a result of more competitive rates and lower claims attributed to employee training sessions.
7. 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. Therefore, the Board could increase its current $100 per diem to a maximum of $207.91 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.
CLOSED SESSION:
8. A Closed Session was called by President Broomell at 3:22 p.m. per:
• Government Code §54957.5(a), Conference with Labor Negotiators
Agency Representative: Gary Arant, General Manager
Employee Organization: Valley Center M.W.D. Employees’ Association
• Government Code §54956.8 – Real Property Transaction, Conference
with Negotiator
Property: 11580 Betsworth Road, Valley Center
Agency Negotiator: Gary T. Arant, General Manager
Negotiating Party: WorldWater & Solar Technologies
Under Negotiation: Terms of Lease
• Government Code §54956.9(c), Conference with Legal Counsel,
Anticipated Litigation
Number of potential cases: 1
RECONVENE
The Regular Board meeting was reconvened at 4:22 p.m. There was no reportable action.
ADJOURNMENT
9. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 4:23 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary