VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, August 2, 2004
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.
Board members present were: Directors Broomell, Polito, Aleshire, Haskell and Stone. Staff members present were: General Manager Arant, General Counsel Cowett, District Engineer Jewell, Director of Operations Dacus, Director of Finance Jeffrey, Project Engineer/Ass’t District Engineer Grabbe, Project Manager Williams, Engineering Services Supervisor Gootee, Manager of Accounting Pugh, IT Specialist Rivard, and Assistant Board Secretary Doerr. Spectator present was Mr. Gary Piro.
APPROVAL OF AGENDA
At its option, the Board may approve the agenda, delete an item, reorder items and add an item to the agenda per the provisions of Government Code '54954.2. The following two items were added to today’s agenda:
· Closed session: Government Code Section 54956.8, Conference With Real Property Negotiator
Properties: APN 186-231-15 through 18
Negotiator: Gary T. Arant, General Manager
Michael C. Cowett, District Legal Counsel
· Reidy Creek Pipeline Replacement – Budget adjustment
Upon motion by Polito, second by Stone and unanimously carried, the following consent calendar items were approved:
1. Minutes of the Board meeting held July 19, 2004
2. Audit demands
3. Long Term Financial Plan Model:
Ms. Karyn Keese of PBS&J presented a long term financial plan model developed for the District to assist in determining funding alternatives for projects identified in the District’s 2002 Water Master Plan. The model was created to be used by staff to implement the District’s capital improvement program and to identify funding alternatives. Ms. Keese showed how the model can be used by demonstrating several scenarios using certain assumptions such as prioritization of capital projects, water usage, growth factors, interest calculations, capacity fee projections, etc., with the ability to analyze 20 years out. The model will be a living document which can be updated as necessary. The next step is for the District to retain Fieldman and Rolapp to assist in preparing the Capital Financing Plan.
South Node Sewer Project Feasibility Study:
District Engineer Jewell presented the Board with background information stating that in 1998 representatives from Bell Enterprises and the Alti Corporation, property owners along Valley Center Road near the Woods Valley Ranch Development (WVR), obtained Board approval and deposited funds to study expanding the WVR sewer service area to serve their property. The study has been on hold until the WVR plant came closer to being a reality. On February 17, 2004, staff presented the Board with preliminary information concerning expansion of the proposed WVR Water Reclamation Plant to additional properties beyond Bell and Alti. Board’s direction at that meeting was to refine possible alternatives, boundaries, possible costs, and reimbursement alternatives. The feasibility study was prepared by Water 3 Engineering, who had been previously retained by the District.
Mr. Don Bunts of Water 3 Engineering presented the results of the feasibility study to the board. The study identifies the possible service area boundaries and sewer flow needs based on currently approved land use plans and then develops preliminary concepts for collection, treatment, storage, and disposal; approximates possible costs for expansions up to a total of 225,000 gpd. Subsequent expansions may be more costly due to the need for additional disposal area. The study focuses on the properties that have previously requested sewer service and are reasonably feasible to serve. There are approximately 300 parcels in addition to Bell and Alti properties, with a total area of about 950 acres. Bell and Alti are prepared to proceed with the first stage of expansion for their own use; a required additional capacity of 35,000 gpd. While County Plan 2020 is proposing even higher densities than the current land uses allow, these increases should not be included at this time. However, it is an indicator that there will be a demand for sewer service if it can be provided for a cost commensurate with the benefits for the allowed land use.
This study indicates that a total of a 150,000 gpd expansion (225,000 gpd total) may be feasible at the
location. Expansion of the plant is proposed in two 75,000 gpd modules. A review of the possible costs indicates it could cost nearly $11 million, with a major factor being the wet weather storage requirements for the first $75,000 gpd expansion. This would be a cost per EDU of approximately $36,500. Assessment district financing would allow that cost to be allocated to the benefiting properties and spread out over many years. During the County’s process of acquiring property for the widening of Valley Center Road, many property owners became aware of the value of sewer to their property. From the study, it can be reasonably concluded that sewer service can feasibly be expanded to at least an additional 75,000 gallons per day, the land uses within a reasonable distance will have demands of this magnitude, and assessment district financing can provide the means to construct the necessary facilities. The Board discussed that if they move forward on this project, issues that will need to be addressed early would be:
More study will need to be done regarding pressure sewer feasibility. If
Valley Center Road
widening is completed, trenchless installation of sewer lines may be required, and pressure sewer may be the most feasible alternative. Additionally, a pressure sewer alternative shifts significant costs to the time when service is required.
Based on VCMWD staff’s earlier experiences with assessment district financing for sewer projects, the assessments should be spread based on the total area of a property and the land use at the time of the assessment rather than an estimate of EDUs a property might have in the future.
Determine if the assessment district boundary can be developed to be able to include the ultimate sewer collection system, yet provide for phasing the treatment/disposal needs.
Initial costs may be able to be covered by a “preliminary” assessment district for planning and design.
How future capacity needs can be considered in the initial phases. Assessment District financing allows only for benefits received to be financed, future capacity cannot be assessed.
At this point, coordinating the expansion of the sewer service with Valley Center Road widening should not be expected, as the County is scheduled for final plan approval in November/December 2004 and there are no advance funds to install sewer in Vallley Center Road and the timing of the necessary processes (CEQA, MUP, assessment district financing, enough design to know what to put in) might delay the Valley Center Road project and jeopardize funding.
Upon motion by Stone, seconded by Haskell, and unanimously passed, staff was directed to proceed with contacting property owners in the area of possible sewer service, requesting a $1,000 per parcel earnest deposit for the development of preliminary plans to form an assessment district for sewer service.
5. Request for Concept Approval of the
High Vista Drive
Area Water & Sewer Facilities:
Project Engineer/Ass’t District Engineer Grabbe stated that Piro Engineering has submitted a request for concept approval of proposed water distribution facilities and low pressure sewer collection facilities for High Vista Drive and surrounding properties. The project would be constructed in multiple phases with each phase constructed by different developer/property owners.
The design of low pressure sewer collection facilities is based on the preliminary design report prepared by MacDonald-Stephens Engineers Inc. (now R.W. Beck). It had been previously determined that due to the nature of the terrain a conventional gravity sewer collection system would not be feasible for this area. A gravity design would require at least five additional lift stations, deep sewer to be constructed in rocky terrain and relatively narrow road easements. Many homes would still need a pump system to reach the gravity mains.
Because the sewer collection facilities for each phase are sized to serve the upstream service area, reimbursement agreements are requested to help apportion the cost of the oversized facilities. The project identifies six phases of work that will provide a connection point for the majority of the property in the High Vista Area. Construction plans for Phases 1 and 2 have been previously approved. Phase 1 is currently under construction.
With issuance of concept approval, Mr. Piro will begin preparing construction plans for the Phases 3 through 6 subject to staff comments on the Preliminary Design Report. Staff will notify the property owners in the service area of a pending action to approve a reimbursement agreement that would make their property subject to a Special Connection Charge should sewer service be desired. Once notification has been made, approval of the District Facilities Agreement with reimbursement provisions would be presented for Board approval. The project is summarized as follows:
Phase 1 Improvements – Is presently under construction by Mr. Lackoritz and consist of an 8 inch gravity sewer main in Mountain Meadow Road. Construction plans were approved in June 2003. This portion of the sewer main was previously included in approved plans for the Phase 2 area. However, due to the construction timing requirements, Mr. Lackoritz was required to construct the Mountain Meadow Road portion ahead of time in order to complete the final map requirements for his
property. While the Phase 1 Improvements are being constructed primarily as a requirement for PM 18430, they consist of the minimum allowed are8” gravity sewer line which has capacity for the entire service area.
Phase 2 Improvements – Serves the Steinbeck property included in Tract Maps 4739 and 4742. Construction plans for the projects were approved April 1998 and April 1997, respectively. The plans for Tract Map 4742 included construction of an 8 inch water main in High Mountain Drive to loop the water line in High Vista Drive to the water main in Mountain Meadow Road and consist of 2” to 4” low pressure sewer collection improvements, sewer main, and a chemical injection facility for downstream odor control. Each parcel in the service area would be required to install a grinder pump system to connect to the low pressure sewer system.
Phase 3 Improvements – An extension of sewer collection and water distribution facilities in High Vista Drive to serve the Tentative Map 20398 proposed for the Black property.
Phase 4 Improvements – Is an addition of a low pressure sewer collection line in High Mountain Drive to serve Tentative Parcel Map 20558 for the Piro property. This line would be installed at the same time the proposed water line for Phase 2 is constructed in High Mountain Drive.
Phase 5 Improvements – Consist of an extension of sewer collection and water distribution facilities south of High Vista Drive to serve the Steinbeck Tentative Parcel Map 20573 (Wyball Trust Property).
Phase 6 Improvements – Consist of an extension of sewer collection facilities in High Vista Drive to serve parcel APN 186-300-58 currently owned by Mr. Piro.
Cost allocations for the reimbursement agreements would be developed by an outside consultant using method of allocation suitable for sewer collection facilities. The consultant will evaluate the estimated costs provided by Piro Engineering and develop cost shares for each parcel based on the appropriate costs for each project. The owners of parcels identified for the Special Service Connection Charge will be notified of the pending action prior to submitting the reimbursement agreement for approval by the Board. Upon completion and acceptance of each project, Piro Engineering shall submit final project expenses for review by the District’s consultant and a revised Special Connection Charge would be determined at that time. Property owners desiring sewer service would pay the Special Connection Charge only upon connection to the system. The District will explore the use of a financial trust established by the developer to which reimbursements would be made. The Trust would then make disbursements to the developer. This would help alleviate the District of the responsibility of keeping track of the assessors and assigns to reimbursement agreements. The reimbursement agreements would be valid for 10 years from the date of project acceptance.
Upon motion by Polito seconded by Haskell, and unanimously passed, concept approval was granted for projects identified as Phases 3, 4, 5, and 6 as described in the Preliminary Design Report and approved the intent to enter into reimbursement agreements for project Phases 1 through 6.
6. Requests for Budget Adjustments for the
Pipeline Replacement Project and Reidy Creek Pipeline Replacement Project:
a. Charlan Road Pipeline Replacement: District Engineer Jewell explained that during construction the contractor encountered soil that would not compact to the standards required by the County of San Diego for road restoration. In order to meet County standards, the contractor was required to re-excavate and install geofabric and road base material. This resulted in a request for a $26,730 change order. In processing the change order, it was discovered that the project had already been exceeded by $13,618 because of an $18,070 error which was made by staff in the projection of expenses. In order to bring the budget current and approve the change order for the contractor, a budget transfer of $41,000 from Account #01-5618.78 “Unspecified Pipeline Replacement” to Account #01-5637.78 “Charlan Road Pipeline Replacement” was requested.
Upon motion by Polito, second by Stone and unanimously carried, the following resolution entitled:
RESOLUTION NO. 2004-29
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE 2004-05 BUDGET BY TRANSFERRING
$41,000 FROM ACCOUNT #01-5618.78
(UNSPECIFIED PIPELINE REPLACEMENT)
TO ACCOUNT #01-5637.78
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
b. Reidy Creek Pipeline Replacement: Project Manager Williams explained that the project consists of the replacement of approximately 1,700 linear feet of existing 10” buried CML&W pipe with approximately 3,000 LF of 12” and 8” diameter pipe. The project was initially to be located within LeClair Lane, Espuela Lane, and along the westerly property line of the Escondido Union School District property. However, during design it was determined that an additional 8” line within Monique Way would provide a looped system and increase over-all system reliability. Upon contacting property owners along Monique Way, staff found that the residents supported the project over-whelmingly. At that point, the additional piping was designed and included in the over-all project scope, adding approximately 700 LF of 8” pipe to the project. Eight easement documents and six meter service relocations were added as well. The authorized budget is presently $450,000. To provide for funding for the additional piping, a budget transfer of $100,000 from Account #01-5618.78 “Unspecified Pipeline Replacement” to Account #01-5685.78 “Reidy Creek Pipeline Replacement” is necessary and is being requested.
RESOLUTION NO. 2004-30
AMENDING THE 2004-05 BUDGET BY
TRANSFERRING $100,000 FROM ACCOUNT #01-5618.78
(UNSPECIFIED PIPELINE REPLACEMENT) TO
(REIDY CREEK PIPELINE REPLACEMENT)
GENERAL MANAGER’S AGENDA
General Manager Arant reported:
§ He will be on vacation out of state from August 4-17 and that he is appointing Chuck Dacus to be acting General Manager in his absence.
§ Metropolitan Water District’s Skinner Filtration Plant has been running at anywhere from 105% to 110% over-capacity for most of July. They are diligently working to expand Skinner, but the best estimate for this expansion is in Year 2006-2007.
§ The state’s budget includes a 2-year transfer of about $1.3 billion from local govern-ment, with $350 million coming from special districts. We estimate the District’s share to be about $580,000. However, there are some provisions in that if the special District formula does not generate the $350 million, special districts, and thus our share could go up. There will be a future ballot measure with provisions restricting the Legislature from “taking” money and would only allow them to borrow. This could be done only upon a two-thirds vote of the Legislature after the governor has declared a financial emergency and the Legislature would be limited in borrowing money to two times in 10 years. Additionally, there will be a cap of 8% of the local share of property taxes (roughly $1.3 billion) on the amount they can borrow. Of interest is that currently the Legislature could reallocate all of the tax money in this County to another agency, i.e. schools, by a simple vote of the Legislature. They can reallocate money, but cannot take it for themselves.
§ John VonBorstel, Wastewater Supervisor, submitted a 1-year retirement notification and will be retiring next July. The District may start recruiting for his replacement early due to the difficulty in finding someone in the wastewater field who has the required level of state certifications.
BOARD OF DIRECTORS’ AGENDA
Water Authority’s Board of Directors’ Meeting:
President Broomell reported that the County Water Authority is asking all their member agencies to do whatever they can to minimize water use at certain times.
8. A Closed Session was called by President Broomell at 4:10 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
Name of Case: Rincon del Diablo Municipal Water District, et al. v. San Diego County Water Authority, et al.
San Diego County Superior Court Case No. GIC798230
Michael C. Cowett, District Legal Counsel
The Regular Board meeting was reconvened at 5:30 p.m. No action was reported.
9. Upon motion by Polito, seconded by Haskell and unanimously carried, the meeting was adjourned at 5:31 p.m.
President Ass’t Secretary to the Board