VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Tuesday, February 17, 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.
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 Dacus, District Engineer Jewell, IT Specialist Learue and Board Secretary Stetson. Spectators present were: Messrs. Husted and Reden.
CONSENT CALENDAR
1. Upon motion by Aleshire, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held January 20, 2004
• Audit demand check numbers 97343 through 97724
• Treasurer’s Report and Financial Statements for the period ended December 31, 2003
ACTION AGENDA
2. Request for Waiver of Policy Pertaining to Transfer of Meter Capacity Credits:
Mr. Husted has requested consideration of a waiver of the District’s Administrative Code pertaining to the transfer of meter capacity credits which allows said transfer between parcels of the same ownership. A waiver of the policy on transfer of meter capacity credits would allow the capacity credit transfer to parcels that are under separate ownership that were recently sold by Mr. Husted. It was explained that Mr. Husted recently sold four parcels and retained one parcel served by a 2” meter that will be downsized to a 1” meter. Sale of the four parcels was completed prior to affecting transfer of excess meter capacity from the 2” meter to those parcels now under different ownership.
Upon motion by Polito, seconded by Aleshire and unanimously carried, a waiver of the policy on the transfer of excess meter capacity credits was approved for Mr. Husted for meter services on the four sold parcels to receive meter capacity transfer credits contingent upon processing a downsize of his 2” meter to a 1” size, the purchase of meter services for the four sold parcels and demonstrating that he did recently own the four parcels that will receive a meter capacity credit transfer.
Mr. Husted commended District staff, specifically Roman de Manriquez of the Engineering Services Department, for the professionalism extended to customers. He noted that it has been his experience at the District that staff is accommodating, such that if a problem arises, it is evaluated for a solution and methodology to implement a course of action.
3. Status Report on the South Node Sewer Project:
District Engineer Jewell reviewed that property owners within the Southern Node have recently inquired as to obtaining sewer service through an expansion of the Woods Valley Ranch Reclamation Plant. Information collected from the Woods Valley Ranch Development’s inquiries of interest in sewer service from surrounding properties, which was a requirement for approval of their treatment plant, was used to plot properties so interested. A map with the properties that had previously indicated interest in obtaining sewer service along with land use designations was reviewed.
The current status of the Woods Valley Ranch Reclamation Plant is that the interim level 1 is ready that consists of a 10,000 gallon tank to pump and haul up to 5,000 gallons per day. Completion and acceptance of the sewer lines is needed as well as Health Department approval for use of the recycled water. A lift station is under construction. The permanent reclamation plant is expected to be completed in mid-2005.
A map was developed showing the possible sewer boundary serving the largest amount of area including the properties that had submitted statements of interest along with the current land use designations (alternate 1). The initial expression of interest was received from 83 properties with a total area of 390 acres. A preliminary analysis to approximate the number of EDU's ultimately generated from the alternate 1 parameters indicates 248 properties covering 605 acres.
The Woods Valley Ranch Water Reclamation Facility is designed for a capacity of 70,000 gallons per day (expected to be able to be run at up to 75,000 gpd) for the 280 EDU’s within the Woods Valley Ranch development. The reclamation facility was designed to be expanded by two 75,000 gpd increments for a total of 225,000 gallons per day capacity in the first phase of expansion or 320 EDU’s in the expansion. A reimbursement agreement could be executed for the Woods Valley Ranch development upon expansion of its facilities.
The possibility of constructing a pressure collection system was discussed. The District’s sewer design manual stipulates a gravity sewer system unless it is demonstrated that it is infeasible. Initial costs of a collection system are minimized with a pressure collection system and the capital cost of private pumps would be deferred until the individual services needs actually occur. The County had determined in its analysis of a sewer system for Central Valley Center that the life time costs of a gravity system are more economical. It was noted that with a pressure sewer system there is constant maintenance of the pumps and appurtenances. However, the upfront costs of a gravity system can be substantial compared to the pressure sewer system.
The Woods Valley Ranch Water Reclamation Facility is designed to provide tertiary effluent of up to 70,000 gpd on its adjacent golf course. Costs of additional recycled water as a result of an expansion of the reclamation plant would need to be negotiated such as wet weather storage requirements.
Formation of an assessment district may be pursued as a means to finance the proposed expansion of the reclamation plant. Optional or mandatory participation in an assessment district will be considered. Costs associated with an assessment district are usually determined based on an analysis of perceived benefit. Provisions are available to assess properties for the design phase of an expansion project in advance to reduce the need to fund that portion of the project. One year’s principal and interest will be required in a bond reserve fund. Staff noted that, similar to the County’s efforts to construct a sewer system for Central Valley Center, an expansion of the Woods Valley Reclamation facility to sewer Southern Node properties will be expensive and its financial feasibility will be determined in the future.
An estimated schedule of a sewer expansion project for the Southern Node properties with the formation of an assessment district to fund costs was reviewed as outlined below:
• Initial planning to define project (6 months)
• Select assessment consultants (1 month)
• Develop reimbursement agreement on Woods Valley Ranch system (6 months)
• Preliminary design report (3 months)
• Form preliminary assessment district (3 months)
• Obtain discretionary approvals (12 months)
• Prepare plans and specifications (6 months)
• Bid project (3 months)
• Adopt Resolution of Intention
• Public Hearing
• Bond sale (3 months)
• Construction (18 months)
• Final acceptance/accounting (2 months)
District Engineer Jewell stated that staff will endeavor to work with Woods Valley Ranch to refine possible alternatives; staff will refine the preliminary locations of possible sewer lines and boundaries and pursue cost and reimbursement estimates.
4. Approval of Additional Meter Services Technician Position:
At the January 20th Board meeting, the Board had approved adding a Meter Services Technician position rather than filling a position currently vacant due to an employee’s illness with a temporary part-time position with full-time benefits. Adoption of Ordinance No. 2004-01 was requested to formally implement this change in authorized staff positions. Staff noted that if the Meter Technician position vacated due to the employees’ illness comes open, Board authorization will be requested prior to filling the position.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2004-01
ORDINANCE OF THE
VALLEY
CENTER
MUNICIPAL
WATER DISTRICT AMENDING THE ADMINISTRATIVE
CODE TO PROVIDE FOR CHANGES IN THE DISTRICT’S
ORGANIZATIONAL CHART, SECTION 40.9, TO ADD
A METER TECHNICIAN POSITION
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Resolution to Appropriate Funds for the District’s 50th Anniversary Celebration:
An Open House will be held on July 12th to celebrate the District’s 50th anniversary. As proposed, it will begin at 2:00 p.m. with an Adjourned Regular Board meeting and continue until 7:00 p.m. Customers will be notified of the Open House through an insert in their water bills and articles in local newspapers. To assist in the funding of this event, an application was submitted for $6,800 for various supplies and labor under Metropolitan Water District’s Community Partnering Program. Adoption of Resolution No. 2004-05 to establish the “50th Anniversary Celebration” account (#01-5101.50) with an appropriation of $15,000 for the Open House Celebration was requested.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-05
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE 2003-2004 BUDGET TO ESTABLISH
THE 50TH ANNIVERSARY CELEBRATION FUND AND
APPROVE THE APPROPRIATION OF $15,000 TO SAID FUND
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
6. Update on Refunds from the
Sa
n Diego
County
Water
Authority, Metropolitan Water District and Energy Settlement Funds:
Director of Finance Jeffrey reported on the following refunds and energy settlement funds as follows:
~ San Diego County Water Authority – Refund of $541,005 was received which is the District’s share of the Authority’s excess operating funds.
~ Metropolitan Water District of Southern California – A credit of $561,127 will be received from Metropolitan on the District’s March water purchases, which is the District’s share of excess water sales revenues by Metropolitan in 2002-03.
The refunds from the San Diego County Water Authority and Metropolitan Water District will be allocated to the District’s rate stabilization fund. Funds in excess of this fund’s maximum will be allocated to the Master Plan System Improvement Reserve.
~ Williams Energy Settlement – A second installment from the Williams Energy settlement in the amount of $421,154.07 was received and deposited in the District’s Energy Efficiency Reserve. A final installment of $289,543.76 is due in January 2005.
7. Water Loss Report for 2003:
The water loss for calendar year 2003 was reported at 4.8% which meets the District’s Strategic Plan measurement standard for unaccounted water loss to be less than 5% per calendar year. Unaccounted water losses can be attributed to several factors including leaks in the system associated with a high pressure system. Known water losses for the year include an estimated 346.9 acre feet that is related to usage to combat the October 2003 fire. Director of Finance Jeffrey noted that a claim for $214,180 has been filed with the Federal Emergency Management Agency (FEMA) to recover costs associated with the fire disaster.
GENERAL MANAGER’S AGENDA
8. Review of Miscellaneous Information Items:
Cougar Pass Road Easement – Mr. Braman’s proposal that the District quitclaim its road and blanket road easements in exchange for a Joint Use Agreement with the San Diego County Water Authority over its aqueduct road easement is being considered. To be evaluated is any restriction on the use of the road by the Authority, as with the District’s current easements, there are no use restrictions.
Letter Addressing Increase in PERS Rate – A letter was forwarded to Mr. Harrigan, President of the CAL-PERS Board of Administration, regarding the increase in the PERS rate from 24.4% to 36.2% of payroll to be effective July 1, 2004. Consideration of assistance in mitigating the impact from the rate increase is being requested. The letter was also forwarded to the Chair of the Senate Public Employee and Retirement Committee and Assembly Public Employees Retirement and Social Security Committee as well as Senator Hollingsworth and Assembly Member Haynes.
GENERAL COUNSEL’S AGENDA
9.
Sa
n Pasqual Band of
Mission
Indians Temporary Water Service:
At the November 17, 2003, Board meeting, an extension of the temporary water meter service was granted to the San Pasqual Indian Reservation. The emergency temporary meter serves properties within the San Pasqual Indian Reservation that are outside of the District’s service area. The extension was granted, however, contingent upon the Indian Band pursuing annexation to the District.
As part of the Quantification Settlement Agreement (QSA)/Indian Litigation Settlement, the San Pasqual Indian Band is entitled to water from the Colorado River (settlement water), and there are agreements with the San Diego County Water Authority and Metropolitan Water District of Southern California for the wheeling of said settlement water through their respective facilities without the requirement to annex their properties. The settlement water will be available upon completion of the lining of the All American Canal expected to be completed in 2007.
Per a letter dated January 28, 2004, by General Counsel Cowett to Mr. Joe Membrino, attorney for the San Pasqual Indian Band, it was stipulated that the San Pasqual Indian Band must do one of the following:
1. Annex to Metropolitan Water District of Southern California, San Diego County Water Authority and the District in order to continue to receive District water other than settlement water.
2. Either annex to the District or enter into a comprehensive retail water service agreement with the District for the District to provide retail water service to individual parcels on the reservation outside of the current District’s service area, whether the water is settlement water or imported water.
3. Reach a wheeling agreement with the District if District facilities will be utilized to wheel settlement water to the San Pasqual Indian Reservation properties.
General Counsel Cowett reported that he has discussed with Mr. Membrino the need to negotiate a wheeling agreement that will be effective in 2007 (availability of settlement water) to be parallel with the agreements the Band has with the San Diego County Water Authority and Metropolitan Water District. If the wheeling agreement with the District is being pursued in good faith, the District would continue to provide water service through the emergency temporary water meter service until the settlement water is delivered. Mr. Membrino has concurred with the proposal per his letter dated February 11, 2004.
A meeting between General Counsel Cowett and Mr. Membrino will be held on February 18th. It was noted that a wheeling agreement or a comprehensive retail water service agreement will involve an analysis of capacity (aqueduct connections, transmission mains, pumping stations and reservoirs) in the District’s system. Further, any agreement will clarify that wheeling the settlement water or providing service outside of the District’s boundaries is secondary to the District’s obligation to service customers within the District’s jurisdictional boundaries. The Board concurred with the proposals for water service to the San Pasqual Band of Indians as discussed.
BOARD OF DIRECTORS’ AGENDA
10.
Sa
n Diego
County
Water Authority’s Governance Issue:
At the January 29th San Diego County Water Authority Board of Directors’ meeting, consideration of the Authority’s governance (voting) structure was postponed. A workshop on the voting structure was held February 12th by the Board Representation Ad Hoc Committee. Subgroups were formed which consisted of Economic Study Group members, City of San Diego, and other cities and member agencies. The outcome was an indication of support (16-8 vote) of the compromised proposal on the governance issue. The proposal will be considered by the San Diego City Council’s Rules Committee on March 10th.
ADJOURNMENT
11. Upon motion by Polito, seconded by Haskell and unanimously carried, the meeting was adjourned at
4:04 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary