September 16, 2002

Regular Board Meeting

Monday, September 16, 2002

Time: 2:00 P.M.

Place: Board Room

29300 Valley Center Rd.

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.

Board members present were: Directors Broomell, Polito, Aleshire, Stone and Haskell. Staff

members present were: General Manager Arant, General Counsel Cowett, District Engineer

Jewell, Director of Operations Dacus, Acting Director of Finance Jeffrey, Water Facilities

Supervisor Stetson, Information Systems Specialist Learue and Board Secretary Stetson.

Spectators present were: Messrs. Veltri, Keeter and Bunts, representatives for the Mountain Gate

Development and Mr. Ross, Valley Roadrunner Newspaper.

1.

2. Concept Approval of the Mountain Gate Project’s Water and Sewer Systems:

Development of the Mountain Gate Subdivision’s proposed sewer collection and water

distribution systems were reviewed by District Engineer Jewell.

Sewer Collection System:

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Water Distribution System:

In order to provide adequate water pressure and fire protection to all of the proposed lots

within the Mountain Gate Subdivision, a hydropneumatic pump system will be required.

Further, the relocation of the District’s 16-inch supply main will be required in order that the

District’s waterlines will be located within the planned development’s right-of-ways.

Mr. Sam Veltri, representative of the property owners of the Mountain Gate Subdivision, and

Keith Keeter, Latitude 33 Engineers, outlined the proposed water and sewer improvements.

Mr. Veltri stated that the property’s terrain is mountainous. The entry opposite of High Vista

Road off of Mountain Meadow Road will be improved to a signalized 4-way intersection with

sensors to identify cars waiting on the development’s access road. Maps outlining the

proposed location of the sewer collection system were reviewed in which the tie-in into the

sewer system is proposed at Legend Rock Road and Mountain Meadow Road. A majority of

the avocados existing within the proposed development will not be removed and will be

maintained by a homeowners’ association created for this purpose.

3. Award of Contract for the Valley Center Pump Station Natural Gas Engine Replacement

No. 3:

Bids for the Valley Center Pump Station Natural Gas Engine Replacement No. 3 were opened

on August 20

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4. Amendment to the Administrative Code to Decrease the Pump Zone Charges:

Acting Director of Finance Jeffrey reviewed that in early 2001, the District’s electrical pumping

rates peaked at almost 26¢ per kWh. During the period of high electricity costs, the District’s

pump rate stabilization reserve had been depleted ($1 million) with an additional $500,000

of pumping costs funded by the General Fund. Increases in the pump zone charges had

been implemented for an aggregate increase of 72%.

The District’s pumping costs have stabilized at approximately 12¢/kWh. Stabilization of rates

and the implementation of increases in the pump zone charges has resulted in a balance, as

of June 30, 2002, in the pumping rate stabilization reserve of $1,021,605 and repayment of

the funds used to stabilize pumping rates from the General Fund. Staff recommended

adopting a 15% decrease in the District’s pump zone charges to be effective with the billing

of October 15, 2002. Staff will continue to evaluate the District’s energy costs.

5. Status Report Concerning Additional Water Quality Testing:

At the meeting of August 19

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The list of 89 pesticide chemicals was forwarded to the Metropolitan Water District of

Southern California’s Water Quality Division for review. From this review, the Environmental

Protection Agency’s (EPA) cancer group rating, maximum contaminant levels, action levels,

public health goals, health advisory levels presence on the EPA candidate contaminant list,

requirement for unregulated monitoring, Metropolitan’s monitoring status and results, and the

EPA’s suggested analytical method number for the pesticide chemicals were determined. In

addition, the San Diego County Department of Agriculture, Weights and Measures has been

asked to review the list of pesticide chemicals to determine which are still in use and, if not

in use, when were they decertified or banned. With this information, the list of pesticide

chemicals to perform additional testing for could be finalized.

Of the 89 pesticide chemicals, there are 40 that have no certified testing procedure to

determine its presence in the water supply (i.e. EPA analytical method). A majority of the

pesticides on the list with no determined analytical method are those listed under the category

of “Questionable Carcinogen” by the local Valley Center Cancer Cluster committee.

General Manager Arant explained that staff will coordinate a meeting with the Valley Center

Community Response Team to review the testing data received and review pesticide

applications on a map. In this manner, the additional water quality testing sample points can

be focused in the areas with the greatest concern.

Quotes for the water quality testing have far exceeded initial estimates of between $2,500 and

$5,000. Due to complexities, the additional testing procedures may cost upward to $35,000.

Some water samples may need to be shipped to different parts of the country to laboratories

that can complete the tests. Additional costs are also associated with arranging for an

independent laboratory technician to collect the water samples and forward the samples to

the appropriate laboratories. In addition, staff proposed performing the full Title 22 testing

on samples taken from the District’s water system that is normally tested for by Metropolitan

to allay concerns and to retain professional consulting services from Maguire Environmental

Services to assist with the list of pesticides, testing procedures and analysis of test results.

6. Update on Proposition 50:

The Board’s position of “oppose” regarding Proposition 50, the “Water Security, Clean

Drinking Water, Coastal and Beach Protection Act of 2002", that will be on the November 5,

2002 ballot, is based on its excessive cost ($3.44 billion in general obligation bonds) with a

small percentage of the funds earmarked for water development projects and the majority to

fund acquisition of park land and open space property.

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The Association of California Water Agencies’ Board had taken no action on the proposition

at its July meeting, but directed the Executive Director, Steve Hall, to negotiate legislative

language regarding the “full mitigation” issue for in-stream projects funded by the proposed

bond. He had been further directed to obtain commitments from the bond proponents of a

future water bond that would include funds for construction projects. Mr. Hall has

communicated with ACWA members that legislation awaiting the Governor’s signature

clarifies the meaning of “full mitigation” for the November 5, 2002 bond, to allow maximum

flexibility for projects covered by “full mitigation”. In addition, a letter was sent to Senator

Mike Machado, one of the co-chairs of Proposition 50 campaign, written by the bond

proponents (Joseph Caves, Leslie Johnson and Gerald Meral) stating support for a 2004

water infrastructure bond if it is consistent with CalFED recommendations. Metropolitan’s

analysis indicates that if all the projects under Proposition 50 are funded, it will result in a net

water supply of 710,000 acre feet. With these new developments, Mr. Hall is recommending

that ACWA support Proposition 50 at the Board meeting of September 27

7. California Special Districts Association Region 6 Board Election, 2002:

California Special Districts Association is conducting its 2002 Board elections in which the

District can cast its vote for a member for Region 6. The candidates are:

Patricia “Trish” Hannan, Vallecitos Water District

S. R. “Al” Lopez, Western Municipal Water District

James “Ski” Wolniewcz, Sweetwater Authority

8. San Diego County Water Authority’s Board of Directors’ Meeting:

The following action taken at the San Diego County Water Authority’s Board meeting of

August 22

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9. A Closed Session was called by President Broomell at 3:55 p.m. pursuant to:

• Government Code §54956.9(c), Conference with Legal Counsel - Existing Litigation

Name of case: Sweetwater Authority, et al. v. Dynegy, Inc., et al.

SDSC Case No. GIC 760743

• Government Code §54956.9(b), Conference with Legal Counsel - Anticipated

Litigation

The Regular Board meeting was reconvened at 4:15 p.m. No action was reported.