VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, June 21, 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 2:06 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 Finance Jeffrey, Director of Operations Dacus, IT Specialist Rivard and Board Secretary Stetson. Other staff members present were: Manager of Accounting Pugh, Administrative Assistant Olson, Water Systems Supervisor Bull, Wastewater Systems Supervisor vonBorstel, Water Facilities Supervisor Stetson, Construction/Maintenance Supervisor Hoyle, and Meter Services Supervisor Jones. There were no spectators present.
APPROVAL OF AGENDA
Upon motion by Stone, seconded by Aleshire and unanimously carried, the agenda items were reordered to consider item numbers 4 and 5 (provisions for professional and consulting services and establishing the Fiscal Year 2004-05 fixed charge special assessments) prior to review of the proposed FY 2004-05 operating and capital budget.
CONSENT CALENDAR
1. Upon motion by Aleshire, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held June 7, 2004
• Audit demand check numbers 99337 through 99571
ACTION AGENDA
2. Proposed Amendments to Provisions Concerning Professional and Consulting Services:
Amendments to Administrative Code Article 135, Professional and Consulting Services, setting forth procedures for the selection process for professional and consulting services were presented for the Board’s approval.
Proposed changes include increasing the estimated contract amount for project specific professional and consulting services from $5,000 to >$25,000 in which proposals must be reviewed from a minimum of 3 firms. Project Engineer Grabbe noted that there can be significant cost for the District and proposing firm in the preparation and response to requests for proposals for small projects. Further changes include that the District shall maintain a file of statement of qualifications (SOQs) for firms that are known to provide the types of professional and consulting services typically needed by the District, and the consultant for small projects can be selected from these SOQs. Also, proposed changes include clarification regarding the selection process regarding firms on the as-needed professional and consulting services list and the approval procedure for progress and final payment as well as contract amendments. In addition, sections were added addressing unlawful activities pertaining to professional and consulting services and on nepotism. Article 135 also includes tables which summarize the proposed procedures.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2004-10
ORDINANCE OF THE
VALLEY
CENTER
MUNICIPAL WATER
DISTRICT AMENDING THE ADMINISTRATIVE CODE TO
PROVIDE FOR CHANGES IN PROVISIONS FOR
PROFESSIONAL AND CONSULTING SERVICES
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
3. Adoption of Resolution Establishing Fixed Charge Special Assessment for Fiscal Year 2004-05:
Resolution No. 2004-24 setting the District’s fixed charge special assessment for Assessment District No. 96-1 (Treasures at Castle Creek) was presented. An assessment for 2004-05 of $783.96 per parcel for the 202 parcels in the assessment district is needed to meet the principal and interest obligations for the fiscal year for the limited obligation improvement bonds sold by the District pursuant to the improvements to the Moosa Sewer Treatment Facility for the affected properties.
Director of Finance Jeffrey noted that there will be no additional annual assessment for the Paradise Mountain annexation as the indebtedness was paid in full and this fiscal year it is not necessary to lien any parcels for unpaid water or other charges and place the lien on the tax roll.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-24
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT PLACING
FIXED CHARGE SPECIAL ASSESSMENTS FOR 2004-05
ON PROPERTY WITHIN ASSSESSMENT DISTRICT
NO. 96-1 PURSUANT TO STREETS AND HIGHWAYS
CODE SECTION 6880 AND 8682 ON THE
SAN DIEGO
COUNTY SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
4. Proposed Fiscal Year 2004-2005 Operating and Capital Budget:
The District’s operations, maintenance and capital budget for Fiscal Year 2004-05 was reviewed as outlined below:
Revenues:
• Water sales are estimated at 44,500 ac. ft.
• Rate changes included in the budget to be effective January 1, 2005 are increases from:
~ The Metropolitan Water District of Southern California – water delivery charge of +6% and the capacity reservation charge of +9%.
~ San Diego County Water Authority supply rate increase of $28/ac.ft. on non-agricultural water
~ District’s portion of the water rates includes increases of +3% for inflation and +17% for lost property tax revenue. The expected reduction in property taxes is more than $560,000 or $12.66 per acre foot of budgeted water sold. Staff cautioned that the proposed tax agreement with the state may be unraveling and likely will change. Further, an increase in the local water rates to offset the loss of property taxes was proposed due to the District’s wholesalers’ water rate structures which are comprised of a number of fixed charges that amount to approximately half of the purchase price of water. It is an option to fund the loss of property taxes from the District’s rate stabilization fund rather than increasing the District’s local water rate to offset this loss of revenue. It was proposed that prior to January of 2005, an ordinance will be presented to the Board for the pass-through on the water rates the rate increases from Metropolitan and the Water Authority and increases for the District’s share of local costs.
• 838 new meters are anticipated to be installed which includes 410 fire meters.
• Interest income of $525,000 at an average interest rate of 2.1% is projected. This amount is equivalent to $12 per ac. ft.
Energy:
• Current pumping charge is adequate at this time. Pumping costs budgeted are at $96 per ac. ft.
Personnel:
• Two and one-half new positions requested; an Administrative Assistant for Engineering, Administrative Assistant for Field Administration (part-time to full time), and a Pump Facilities Technician for field operations.
• Personnel costs have increased $1,552,700 over the base Fiscal Year 2003-04 budget. Three and one-half positions were added during 2003-04 and two and one-half positions requested for 2004-05. Other cost increases are from increases in the PERS rate, benefit increases and the COLA per the Memorandum of Understanding with employees.
Capital Projects:
• Capital projects funding requests total $7,102,500 which are outlined on the attached sheet labeled Exhibit “A”.
Sewer Funds:
• Operating reserve for the Moosa Sewer fund for June 30, 2004 is projected at 5 months O&M. Capital projects for the Moosa Water Reclamation Plant include completion of a Waste Discharge Permit Report ($50,000) and Master Plan ($50,000).
• Skyline Ranch Sewer system is self-supporting. Wastewater treatment plant is being replaced. O&M expenses for Fiscal Year 2004-05 will increase from $88,012 to $125,655, an equivalent rate of $47.17/EDU.
• Assessment to be collected on the tax roll for properties within the Woods Valley Ranch Sewer Service Area has increased from $50 per unit to $98.60 which will fund operating expenses and the replacement reserve fund.
Per the Board’s direction, the 2004-05 budget will be revised to include reference of the District’s 50th anniversary which occurs July 12, 2004, and the Woods Valley Ranch sewer charge within the budget message. Agricultural Rebate funds of $234,202 that had been collected at the beginning of the Interim Agricultural Water Program will be transferred to the District’s Capital Projects Reserves.
Staff recommended adoption of Resolution No. 2004-23 to adopt the 2004-05 operating and capital budget and Ordinance No. 2004-11 amending the Administrative Code to implement the changes per the adopted budget (authorized staffing levels) and the provisions of the Memorandum of Understanding with employees.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-23
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ADOPTING THE FINAL OPERATING AND CAPITAL
BUDGET FOR THE FISCAL YEAR 2004-2005 AND
ESTABLISHING CONTROLS ON CHANGES IN
APPROPRIATIONS FOR THE VARIOUS FUNDS
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2004-11
ORDINANCE OF THE
VALLEY
CENTER
MUNICIPAL WATER
DISTRICT AMENDING THE ADMINISTRATIVE CODE TO
PROVIDE FOR CHANGES IN AUTHORIZED STAFFING
LEVELS PER THE FISCAL YEAR 2004-05 BUDGET AND
TO INCORPORATE CHANGES PER THE APPROVED
MEMORANDUM OF UNDERSTANDING WITH EMPLOYEES
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
NOES: None
ABSENT: Director Haskell
GENERAL MANAGER’S AGENDA
5. Review of Miscellaneous Information Items:
Senate Bill 994 – An Assembly Committee hearing on SB 994 is being held June 22nd which, if adopted, will amend the San Diego County Water Authority’s governance structure to add the need for the City of San Diego to secure the support of at least 10 other agencies on significant board actions along with the existing “weighted” voting structure. General Manager Arant reported that the state-wide AFL-CIO labor organization is opposing the bill.
Water Supplies – The Water Authority reported that several days in May and June the treated water demands exceeded 95% of Metropolitan’s Skinner Water Treatment Plant’s rated capacity. Colorado River reservoirs are at very low levels and there may be supply shortages from the Colorado River next year. If dry conditions continue, the Metropolitan Water District may issue a one-year’s notice of implementation of the Interim Agricultural Water Program, which is a reduction in water supplies to participating agricultural customers. Should a notice be issued by Metropolitan, the District’s participating agricultural customers will be given notice of a potential cut-back in water allocation. However, cut-backs may not be implemented as Metropolitan has aggressively pursued alternate water sources and enhanced storage capacity which will greatly benefit Southern California during prolonged dry weather conditions.
CLOSED SESSION
6. A Closed Session was called by President Broomell at 3:35 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 '54957 – Public Employee Performance Evaluation – General Manager and Government Code '54957.6 – Conference with Labor Negotiator/Unrepresented Employee – General Manager
RECONVENE
7. The regular Board meeting was reconvened at 4:09 p.m. No action was reported.
ADJOURNMENT
8. Upon motion by Aleshire, seconded by Stone and unanimously carried, the meeting was adjourned at
4:10 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary