VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Tuesday, Ju ly 6, 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, Stone and Haskell. Staff members present were: General Manager Arant, General Counsel de Sousa, District Engineer Jewell, Director of Finance Jeffrey, Director of Operations Dacus, IT Specialist Learue and Board Secretary Stetson. Spectators present were: Messrs. Mair and Heyer and Mrs. Means.
1. Upon motion by Stone, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held June 21, 2004
• Audit demand check numbers 99572 through 99728
• Treasurer’s Report and Financial Statements for the period ended May 31, 2004
2. Award of Engineering Consulting Contracts for the Supervisory Control and Data Acquisition (SCADA) Project:
Project Engineer Grabbe explained that requests for proposals had been advertised for two professional services contracts for the design of a new Supervisory Control and Data Acquisition (SCADA) project. The two consultant design projects will be for SCADA System Planning and for SCADA System Design and System Integration.
The consultant for the SCADA System Planning project will advise the District on how to use the data collected by the SCADA system to more efficiently operate the District’s water distribution system utilizing radio communication which replaces the
existing tone telemetry system. Further, the SCADA system will provide security and video surveillance features and enhance the quantitative data allowing improved operation of the distribution system. Following the two consultants’ projects for the SCADA System Planning and SCADA System Design and System Integration, the 9 sites identified in the vulnerability assessment will be fully operational through the SCADA system.
Carollo Engineers was selected by the review committee to complete the District’s SCADA System Planning tasks at a total authorization amount of $97,810. Staff recommended tasks for development of the data recommendations and coordination with the Design Consultant be initially undertaken ($64,031) and that the remaining tasks would be completed if integration of the water model is recommended.
The consultant for the SCADA System Design and System Integration Project entails preparing standard specifications for the integration of each basic type of facility, design, install and program the computer equipment at central, and provide inspection and programming services for each site integrated. TMV Systems Engineering was recommended by the review committee to be awarded a contract for the SCADA System Design and System Integration Project. Total fees for the tasks negotiated for the SCADA System Design and System Integration project is $567,756. It was explained that the results of the initial tasks (overall design of the system, development of an implementation plan and preparation of standard specifications for each type of District facility) will determine the extent of work required for subsequent tasks. Therefore, the initial authorization to proceed with tasks 1-3 amounts to $230,503 and authorization for the remaining tasks will be dependent upon the results received.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-25
RESOLUTION OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER DISTRICT
AWARDING CONTRACT FOR SYSTEM PLANNING
CONSULTANT FOR THE SCADA PROJECT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
RESOLUTION NO. 2004-26
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AWARDING CONTRACT FOR DESIGN CONSULTANT
AND SYSTEM INTEGRATOR FOR THE SCADA PROJECT
3. Proposed Miscellaneous Administrative Code Changes:
Amendments to the District’s Administrative Code were presented which primarily incorporate updates to reflect current procedures or policies. In addition, it was proposed to add a provision allowing Board members upon termination to continue to purchase insurance coverage which would be subject to the provisions of the District’s insurance carrier.
Following is a summary of the proposed Administrative Code revisions:
Sec. 8.5 – Call Back Pay. Proposed change recognizes that some overtime pay is at double time.
Sec. 9.3 – Injury and Illness Records. Updated to set forth current Cal/OSHA policy pertaining to posting requirements.
Sec. 9.5, 9.8 & 9.9 – Program Communication and Training, Code of Safe Practices and ACWA/JPIA Risk Control Program. Sections updated to reference the ACWA/JPIA Risk Control Manual.
Sec. 110.8 – Directors Benefits. Adds provision for a Board of Director, upon leaving office after age 55 and 16 years of service, to continue purchasing insurance coverage, subject to the policy of the District’s insurance carrier.
Sec. 115.1 – Acceptance of Funds in Payment of Any Obligation Owing the District. Additions specify that all payments will be denominated in U.S. dollars, that the District reserves the right to refuse payment in coins, and that checks can be drawn on U.S. banks rather than only banks located in California.
Sec. 140.3 – Bid Security and Bond Requirements for Public Works Contracts. Section updated to clarify acceptable forms of bid security.
Sec. 160.3 – Water Service Charges and Water Rates. Language removed that states all water through a fire flow meter will be charged at the highest domestic rate, and add reference to Article180 which sets forth that unauthorized water will be billed at three times the domestic rate.
Sec. 160.5(g) – Protection from Damage. Paragraph added to set forth that no one shall damage the water system, and any damage will be collected from the responsible party, including on their water bill.
Sec. 160.8 – Meter Relocation. Section modified to reference current meter connection charges set forth in Sec. 160.4 for a relocated meter if the service lateral is to be installed by the District. Amendments also establish that additional capacity charges and installation costs are collected when a meter size is increased.
Sec. 160.12 – Backflow Prevention Devices. Section updated to include District’s backflow prevention program’s implementation procedures and adds facilities/specific land uses requiring a reduced pressure backflow device in compliance with the State’s Health Code.
Sec. 160.15 – Collection of Delinquent Accounts. Provision added to lien property and collect charges on the property tax rolls.
Sec. 160.17 – Transfer of Meter Service and New Ownerships. Provision to transfer outstanding balance on account to the new owner is deleted (prohibited by statute).
Sec. 160.25 – Conditions of Service. Establishes that the District shall not be liable for damages due to the unavailability of water.
Sec. 171.10 – Sewer Charges, Skyline Ranch Facility. Eliminates yearly equipment replacement reserve funding for previous fiscal years.
Sec. 180.4 – Charges – Fire Hydrant. Add provision that unauthorized water used from a fire hydrant shall be charged at three times the domestic rate to be consistent with Section 180.11 (Unauthorized Use of Residential Fire Sprinkler System).
Sec. 190.7 – Construction. Adds license requirements for developer’s contractor.
Sec. 220.2 – Preliminary Procedure (Annexation Procedures). Due to increases in District staff time to meet the SDCWA, MET and LAFCO’s requirements for an annexation request, an increase in the applicant’s deposit from $2,000 to $5,000 is recommended.
Article 270 – Encroachment Permits. Changes in Sections 270.3 (General Requirements), 270.5 (Guidelines for Granting Encroachment Permits), and 270.6 (Unauthorized Use of District Easements) which will improve the encroachment permit process.
The Board concurred with the proposed Administrative Code revisions as presented with the exception of allowing Board members to continue to purchase insurance coverage upon termination with no age or years of service requirement. In addition, the table heading within Section 140.3, Bid Security and Bond Requirements for Public Works Contracts will reflect “less than” $35,000 in the 3rd column.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance as amended, entitled:
ORDINANCE NO. 2004-12
ORDINANCE OF THE BOARD OF DIRECTORS OF
AMENDING THE ADMINISTRATIVE CODE TO
INCORPORATE CHANGES IN PROCEDURAL
POLICIES AND MINOR UPDATES
4. Resolution Supporting HR 4389, the
nta Margarita River Conjunctive Use Project:
The Fallbrook Public Utility District and U.S. Marine Corps, Camp Pendleton are pursuing a conjunctive use groundwater project of water resource development of the Santa Margarita River which has a projected yield of approximately 16,000 ac. ft. General Manager Arant explained that the funds have been appropriated for studies which are currently underway and expected to be completed in late 2005. HR 4389 (Issa), if adopted by Congress, would authorize construction of the project and possible future funding appropriations.
The Santa Margarita River Conjunctive Use Project would produce 16,000 ac. ft. of local supply and would be beneficial to the District in that the demands for imported water supplies for the area would be reduced and relieve system capacity. Adoption of Resolution No. 2004-27 supporting HR 4389 was recommended.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-27
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
SUPPORTING THE PASSAGE OF HR 4389 (ISSA)
AUTHORIZING THE CONSTRUCTION OF THE SANTA
CONJUNCTIVE USE PROJECT
5. Review of the
County Water Authority’s Survey of Member Agencies’ Water Rates:
Annually, the San Diego County Water Authority prepares a survey of its member agencies’ water rates. An analysis by staff of the survey indicates that the District’s commodity, meter service and meter capacity charges compare very favorably with the other member agencies of the Authority. The District has the lowest M&I and agricultural commodity rates of the Authority’s member agencies that receive all of their water through the Authority’s pipelines. Compared to all the member agencies, including those with local water supplies, the District’s commodity rates for both domestic and agricultural are the third lowest. Director Aleshire requested that staff ask the San Diego County Water Authority to include other pertinent revenue sources such as agencies’ water availability charges and tax rates in their survey of member agencies’ water rates so that the survey data is a more useful comparative tool.
GENERAL MANAGER’S AGENDA
6. Review of Miscellaneous Information Items:
~ Revised Local Government Budget Agreement –ACA 9, proposed revisions to the Local Government Budget Agreement, would provide little constitutional protection of local government revenues and would not protect local government tax revenues in future years as had been negotiated with the Governor. The
proposed budget amendment would allow the State Legislature with a two-thirds approval vote to transfer local governments’ tax revenues. A letter was forwarded to Governor Schwarzenegger and members of the Senate and Assembly opposing ACA 9, the revised Local Government Budget Agreement. At this time, adoption of the State’s budget is at an impasse due to the issue concerning local governments’ tax revenue.
~ San Diego County Water Authority Pipeline Easement – Cougar Pass Road – The San Diego County Water Authority may secure a new pipeline easement through Mr. Braman’s property for its facilities in Cougar Pass Road which would also provide the District access. Should this occur, the quitclaim of the District’s blanket and specific easements would be considered.
~ 50th Anniversary Luncheon and Open House – General Manager Arant noted that a luncheon for employees and Board members has been set for Thursday, July 8th. The Open House commemorating the District’s 50th anniversary commences with a Board meeting at 2:00 p.m. on Monday, July 12th.
~ Handicapped Access to the Administration Building – To comply with the American with Disabilities Act concerning providing equal access, reconstruction of the District’s main entrance to allow access by handicapped people is being evaluated.
~ Comprehensive Annual Financial Report – Notice was received that the District’s comprehensive annual financial report for the Fiscal Year ended June 30, 2003, has been awarded a Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada.
GENERAL COUNSEL’S AGENDA
7. Report on Legislation:
General Counsel de Sousa reported that AB 2243 was approved which allows city council members to serve as a water agency’s representative on the San Diego County Water Authority Board of Directors. Also, the local government reform bill proposed (Ortiz) continues to be monitored, but it is not expected to move forward.
Assembly Bill 994, the San Diego County Water Authority governance reform bill, received a 6-6 vote from the members of the Assembly Water Parks & Wildlife Committee. Chairman Canciamilla granted reconsideration of the bill, and, if the votes can be secured, the bill could be reheard.
8. A Closed Session was called by President Broomell at 3:15 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
$ Government Code '54957.6(a), Conference with Labor Negotiators
Agency Representatives: Gary T. Arant, General Manager
William J. Jeffrey, Director of Finance
Employee Organization: Valley Center M.W.D. Employees’ Association
$ Government Code '54957 – Public Employee Performance Evaluation – General Manager and Government Code '54957.6 – Conference with Labor Negotiator/Unrepresented Employee – General Manager
9. The regular Board meeting was reconvened at 4:50 p.m. No action was reported.
10. Upon motion by Aleshire, seconded by Stone and unanimously carried, the meeting was adjourned at