VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, November 17, 2003
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 and Stone. Director Haskell was absent. Staff members present were: General Manager Arant, General Counsel Cowett, District Engineer Jewell, Director of Operations Dacus, Director of Finance Jeffrey, Project Engineer Grabbe and Board Secretary Stetson. Spectators present were: Messrs. Don Gillis, Ron Hilton and Jack Panichapan of Gillis & Associates Architects, Inc.
CONSENT CALENDAR
1. Upon motion by Polito, seconded by Aleshire and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held November 3, 2003
• Audit demand check numbers 96420 through 96571
• Treasurer’s Report for the period ended September 30, 2003
• Board of Director’s request for per diem compensation and reimbursement of expenses
ACTION AGENDA
2. Corporate Facility Master Plan Presentation:
Gillis and Associates Architects, Inc. had been retained to conduct a preliminary analysis and provide determinations and recommendations concerning a Corporate Facility Master Plan for the District. The scope of work included:
1. Complete a critical review of the Corporate Facility Needs Analysis that had previously been done in-house.
2. Determine how much land area would be needed to accommodate the District’s long-term Corporate Facility needs based upon the above mentioned analysis and development of a master plan footprint.
3. Estimate the cost of developing the Master Plan proposal on the existing site considering the possible need for additional land and costs associated with phasing the project and occupying the property while under construction.
4. Provide a comparative cost estimate of constructing the proposed facilities on a newly acquired property to determine the marginal cost of developing on the existing site.
An Executive Summary was distributed by Don Gillis of Gillis & Associates Architects of the Valley Center Municipal Water District’s Administrative, Operations and Maintenance Facility Study. Mr. Gillis stated that a Needs Assessment was developed with detailed input from District staff which provided the guidelines for design of the building and site and layout. Using this information, an optimal floor plan was developed that is sized and configured around the needs evaluated with staff and management. Said optimal floor plan’s circulation provides that upon entering the building, customers can be served by finance, engineering or operations personnel. An administrative area is located on the 2nd level accessible only to personnel and authorized visitors via either a stairway or elevator. Beyond the offices for finance and engineering personnel is office space for field personnel. In addition, a Board Room and Training Room are located near the front that could be accessed by the public with no available access to other areas of the District’s corporate yard.
Gillis & Associates Architects recommended a minimum 8 acre parcel for the optimal corporate facility. This size parcel would accommodate building needs of 64,720 sq. ft. and 1 acre for lay down area (site storage). These facilities would meet the needs of the District at full build-out with projections of 120 employees to serve 17,500 meter services and approximately 6,000 sewer connections. In order to fit the proposed corporate facility plan on the District’s existing site, an additional 1 acre would need to be secured for lay down storage space and parking so that visitors can be segregated from District vehicles and equipment. Also, to fit on the existing site, Pumps & Motors and Vehicle Maintenance would be detached from the main facility and located on the property’s northeast corner.
Cost estimates to construct the proposed corporate facility on a new “optimal” site and the existing site were presented and reviewed. Estimates were $12.9 million to construct on a new clean-sheet property and $14.25 million on the existing site. Costs differences were attributed to having to phase the construction on the existing site and acquisition of additional property (1 acre). Mr. Ron Hilton of Gillis & Associates, Architects opined that it would be more efficient for the District to construct its proposed corporate facility on a newly acquired site as there are disadvantages to the existing site including its elevation changes and size and shape that require separation of departments.
General Manager Arant reviewed the questions that will need to be addressed to determine development of the District’s future corporate facility needs. They are:
1. Are there any suitable alternative sites from the standpoint of size, zoning and wastewater disposal and the cost?
2. What would be the estimated value of the current site and facilities should the District’s corporate facility move to another location?
3. What would be the estimated cost of acquiring additional land if the District were to stay at its current location?
Staff noted that in order to secure the long-term corporate facility needs of the District, the acquisition of additional land and/or the search for a new parcel to meet future needs should be pursued. The Board will be presented with more specific recommendations and a time frame at a meeting in January 2004.
3. Extension of Emergency Water Service for the
Sa
n Pasqual Indian Reservation:
In 1996, the District approved an emergency water meter to serve properties within the San Pasqual Indian Reservation not located within the District’s service area. The request for an emergency water meter had been requested because water levels in wells serving the property in question were dropping and water supplies were not adequate to meet needs during peak periods. The request was granted subject to the San Pasqual Band of Indians initiating annexation proceedings, as well as paying a surcharge on the water supplied. One-year extensions were granted in 1997, 1998 and 1999. Since that time, an administrative extension of the emergency meter service has been granted pending analysis of the District’s annexation policy and proceedings which was completed in 2001.
A review of the emergency water meter’s usage indicates that the water consumption exceeds supplementing their well water during peak demands. District Engineer Jewell reported that two requests were mailed to the San Pasqual Band of Indians in the past year requesting the initiation of annexation proceedings, but no application has been processed. A final notice was prepared for the termination of the emergency water service, however, due to the fire impacts, staff proposed granting a one-year extension with the condition that annexation proceedings to the San Diego County Water Authority, Metropolitan Water District of Southern California, and the District commence.
Following questions concerning the equitableness of including in the District’s service area tax exempt private use property, it was clarified that modifications to the District’s annexation procedures approved in 2001 provide an in lieu fee in addition to the annexation charges for said property. The policy provisions state that: “The fee per acre due under this section (Annexation of Tax Exempt Private Use Property) shall be calculated as follows: The present value of the average property taxes and special assessments collected during the previous fiscal year, using the District’s average investment yield as of the previous June 30 and a term of infinity.” Property is considered private use if its primary purpose is residential, commercial, industrial or agricultural. Property used for charitable, educational or governmental purposes are not considered private use unless they derive the majority of their revenues from sales and user fees and charges.
Director Aleshire proposed granting a 6-month extension for the emergency water meter serving the San Pasqual Indian Reservation conditional upon termination if application for annexation by the San Pasqual Band of Indians is not pursued. The Board concurred with this proposal and that the property within the San Pasqual Indian Reservation to be annexed into the District should include that property within the District’s sphere of influence as adopted by LAFCO.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution approving a six month extension to the agreement with the San Pasqual Band of Indians for emergency water service, entitled:
RESOLUTION NO. 2003-40
RESOLUTION OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER DISTRICT
APPROVING AN AMENDMENT TO THE AGREEMENT
BETWEEN THE DISTRICT AND SAN PASQUAL BAND
OF INDIANS FOR EMERGENCY WATER SERVICE
DATED
AUGUST 20, 1996
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
4. Approval of Additional Meter Services Technician:
Director of Operations Dacus stated that continued growth in meter accounts, residential fire services, backflow devices and testing and the corresponding customer service requirements are necessitating a request for an additional Meter Services Technician. Recognizing the increased work load, it has been anticipated that an additional authorized position for the Meter Department would be requested in the FY 2004-05 budget. However, the long-term illness of a Meter Technician has accelerated the need and request. It was clarified that there would be no financial impact in FY 2003-04 to add an additional Meter Services Technician position as there are adequate funds due to the District’s long-term disability insurance paying the salary of the disabled employee. Staff requested adoption of Ordinance No. 2003-14 to approve the addition of a Meter Technician which would bring the total authorized positions to 74.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2003-14
ORDINANCE OF THE
VALLEY
CENTER
MUNICIPAL
WATER DISTRICT AMENDING THE ADMINISTRATIVE
CODE TO PROVIDE FOR CHANGES IN PROVISIONS
OF DISTRICT CLASSIFICATION AND COMPENSATION
PLAN, SEC. 40.9, ORGANIZATIONAL CHART
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
5. Authorization to Apply for Disaster Assistance –
Paradise
Fire, 2003:
Director of Finance Jeffrey requested Board authorization to apply for federal and state disaster assistance to recover costs incurred as a result of the Paradise Fire that began October 26th. A resolution had previously been approved designating the General Manager, Director of Finance and Director of Operations as agents for filing for disaster assistance with the provision that any application for disaster funds be so authorized by the Board.
District expenses resulting from the Paradise Fire are still being accumulated and include overtime labor costs, water for fire protection, repairs to water and sewer system appurtenances and the rental and operation of a generator to power the Paradise Pump Station. Cost estimates range from $50,000 to $60,000 which may be reimbursable from the Federal Emergency Management Agency (FEMA) and the State of California Office of Emergency Services (OES).
Upon motion by Aleshire, seconded by Polito and unanimously carried, the Board authorized application for federal and state disaster assistance to recover costs incurred as a result of the Paradise Fire of 2003.
6. Approval of License Agreement with Mediacom for Use of a Portion of the District’s Rincon Reservoir Property:
Resolution No. 2003-39 approving a communications site license agreement with Mediacom California for use of a portion of the District’s Rincon Reservoir property was presented. The termination clause of the license agreement with Mediacom executed in 1988 for use of a portion of the Rincon Reservoir site was invoked due to demand increases and license value of the reservoir site.
Director of Finance Jeffrey reviewed terms of the proposed license agreement with Mediacom for use of approximately 811 square feet of the Rincon Reservoir site, which include:
• Annual lease fee of $15,000 increased yearly to $24,000 beginning on the 4th anniversary of commencement date with CPI increases yearly thereafter. (Current annual license fee is $9,607.80).
• Mediacom shall obtain its own electric service and transfer the existing service back into the District’s name. The District had been receiving required electricity at the site at no charge; however, the current electric service is only adequate for the District’s requirements for security and its SCADA equipment.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2003-39
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
APPROVING A SITE LICENSE AGREEMENT BETWEEN
THE DISTRICT AND MEDIACOM
CALIFORNIA
LCC AT
RINCON RESERVOIR AND AUTHORIZING THE
GENERAL MANAGER TO SIGN
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
7. Designation of District’s Delegate to Cast the District’s Vote in the ACWA Officers Election:
At the upcoming ACWA Fall Conference (December 3-5), an election for ACWA’s Chair and Vice Chair for the 2004 and 2005 term will be conducted. Each ACWA member agency is entitled to one vote and must pre-identify its voting delegate. Director Aleshire was designated as the District’s delegate to vote in the ACWA election of officers.
8. Report of Break-In:
Director of Operations Dacus reported that the District’s property had been broken into on Sunday evening. The burglar took a trailer from the District’s yard and transported it to adjacent property owned by the school. The trailer was left on the school’s property, but a concrete saw and saw blades in the trailer were stolen. The activity was recorded on the District’s security camera and is being reviewed. It was further reported that a generator that was locked and bolted had been stolen from the District’s yard the previous week. Installation of additional lighting, a camera accessory for picture enhancement and the possibility of hiring a guard will be evaluated.
9. Retail Water Rate Increase Proposal:
At the November 3rd Board meeting, the proposed new rate structure to be effective as of January 2004, including increases from the District’s wholesale suppliers, the Metropolitan Water District of Southern California and San Diego County Water Authority and a 4.1% increase in the District’s retail water rate, was reviewed. The proposed increase in the District’s water rate is to offset inflationary costs and sustain the buying power of the funds raised to cover local operating costs. The index used to calculate the proposed increase was based on the advancement in the San Diego CPI through July 1, 2003. Other alternative indexes reviewed by staff and their percent increases as of July 1, 2003, were:
CPI – Los Angeles 2.4%
Engineering News Record 2.5%
VCMWD O&M Cost Increase 10.3%
Over FY 2002-03
Wholesale Water Rate Increases 4.6%
Adoption of the proposed increases in the District’s domestic rate and agricultural rate incorporating the wholesale water suppliers rate increases and the increase in the District’s retail water rate, results in a 4.67% increase in the domestic rates and a 4.54% increase in the agricultural rate. These increases with the assumption that other member agencies of the SDCWA maintain their rates would result in the District’s rates for domestic customers being 4th lowest compared to other member agencies’ rates with 100% imported supplies and the 3rd lowest agricultural rate.
The Board will be presented with the proposed water rate increases at the December 1st Board meeting.
CLOSED SESSION
10. A Closed Session was called by President Broomell at 4:20 p.m. pursuant to:
$ Government Code '54956.9(a), Conference with Legal Counsel - Existing Litigation.
Name of Case: Sweetwater Authority, et al. v. Dynegy, Inc., et al.
San Diego Superior Court Case GIC 760743
$ Government Code '54956.9(b), Conference with Legal Counsel – Anticipated Litigation.
Number of potential cases: 1
RECONVENE
11. The Regular Board meeting was reconvened at 4:42 p.m. No action was reported from the Closed Session.
12. Modification of Specifications for The
Islands
Project Under Review:
Staff reported that a request for a variance from the District’s specifications for pipeline installations received from the contractor for The Islands development is being reviewed.
ADJOURNMENT
13. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at
4:48 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary