VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, November 1, 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 Cowett, District Engineer Jewell, Director of Operations Dacus, Director of Finance Jeffrey, Project Engineer Grabbe, Interim Director of Operations Hoyle, IT Specialist Learue and Board Secretary Stetson. Spectators present were: Mrs. Wurster and Messrs. Meyer, Stewart, Christopher and Chagala.
APPROVAL OF AGENDA
Upon motion by Stone, seconded by Polito and unanimously carried, the following item was added to the agenda per Government Code §54954.2:
Request for an amendment to the design contract for the
Valley Center Road
Pipeline Relocation project
Upon motion by Stone, second by Polito and unanimously carried, the following consent calendar items were approved:
1. Minutes of the Board meeting held October 18, 2004
2. Audit demands
3. Treasurer’s Report and Financial Statement for the period ended September 30, 2004
4. Wurster Request for Variance on Fire Sprinkler Requirement:
Mr. and Mrs. Wurster, owners of property on 15914 Severino Lane in Valley Center, lost their home in last year’s Paradise Fire and are in the process of building a home on the property in which installation of residential fire sprinklers are required per the fire department. The District’s regulations for meter services for residential fire sprinkler systems adopted in January of 2003 stipulate that “it is the District’s requirement for a separate dedicated water meter for residential fire sprinkler systems to reduce the risk of service interruption in the event of nonpayment for domestic water”. The Wursters have requested a variance from the District’s requirement to install a separate dedicated fire meter and private service line as the distance from their property to the District’s waterline and meter location is lengthy and would necessitate expensive trenching in the easement and circumventing neighbors’ utilities. However, the Wursters are prepared to upsize their existing ¾” meter to a 1-inch meter.
General Manager Arant stated that if a variance on the requirement for a separate fire meter to service residential fire sprinklers were to be granted the Wursters, it should be on the basis that the home being reconstructed had been in existence prior to the District’s dual meter requirement adopted in January 2003. Further, such a variance granted would be conditional upon execution of a waiver of liability if a fire loss were to occur in the event that water service is interrupted due to nonpayment. Director Aleshire questioned if the policy requiring a dedicated fire meter for residences installing fire sprinkler systems could be amended to allow a single meter that meets flow requirements upon execution of a waiver of liability by the property owners. It was felt, however, that maintaining the current requirement for a dual meter for a residence with a domestic fire sprinkler system would be advantageous as it enables the District to maintain fire flow even if service through the domestic meter has been discontinued and also provides for detection of a cross connection between the domestic water system and the fire sprinkler system.
Upon motion by Stone, seconded by Haskell and unanimously carried, the Wurster’s request for a variance from the requirement for a separate fire meter to serve their domestic fire sprinkler system was granted as the home being rebuilt was in existence prior to the dual meter requirement and is being rebuilt as a result of a catastrophic loss and is conditional upon the execution of a waiver of liability.
5. Amendment to the
Ranch Water Reclamation Facilities Agreement:
Project Engineer Grabbe explained that NNP-Woods Valley, LLC, the developers of the Woods Valley Ranch, entered into a Water Reclamation Facilities Agreement with the District containing specific conditions for the issuance of interim sewer permits prior to completion of the permanent treatment facilities. These conditions ensure there will be adequate storage and treatment facilities available to dispose of any wastewater that could be generated by the development during construction of the permanent treatment facilities.
The developer has met the initial conditions and 141 sewer permits have been issued to date. At present, approximately 45 homes are occupied and wastewater flows average 4,000 gallons per day. Project Engineer Grabbe reported that the interim treatment plant is essentially complete and is scheduled to be operated when average flow rates reach 10,000 gallons per day, which is estimated will be the beginning of 2005.
A Major Use Permit modification that will allow for a more economically expandable treatment plant is being pursued by the developer. Because of delays in obtaining the county’s approval of the Major Use Permit modification, the developer has requested that the Water Reclamation Facility Agreement be modified to allow more interim sewer permits be issued prior to completion of the permanent facilities than was originally intended. The proposed modifications will allow up to a total of 200 interim sewer permits be issued prior to 50% completion of the permanent facilities, and up to a total of 250 interim sewer permits prior to substantial completion of the permanent facilities. The original conditions for the issuance of interim sewer permits were based on an average flow rate of 250 gallons per day/EDU, and interim treatment capacity of 35,000 gallons per day. Staff pointed out that the capacity of the interim treatment plant was designed for 50,000 gallons per day and the actual flow rate experienced to date is less than 200 gallons per day/EDU. The proposed modifications to the agreement to allow more interim sewer permits be issued prior to completion of the permanent facilities should not cause the capacity of the interim facilities to be exceeded.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-35
RESOLUTION OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE WATER RECLAMATION FACILITIES
AGREEMENT FOR THE
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
6. Request to Amend the Design Contract for the
Valley Center Road
Pipeline Relocation Project:
San Diego County is preparing design drawings for the widening of Valley Center Road between Ridge Ranch Road and Cole Grade Road, a project which has been modified several times. The District has prepared plans and specifications for the removal, relocation and adjustment of the existing waterlines and appurtenances within the county’s project limits. R. W. Beck was selected for the District’s design work and a contract was executed with a not-to-exceed amount of $70,000.
Since the execution of the design contract with R.W. Beck, the county has modified the roadwork project in several areas including changing survey data which rendered a completed waterline design useless. Other modifications incurred have been the removal of a portion of waterline near the intersection of Valley Center Road and Cole Grade Road as it was replaced ahead of schedule under emergency conditions, and the scope of work increased substantially with the addition of parallel piping as requested by the District. With these changes initiated by the County, and the increased scope of work due to the additional piping, additional funds to complete the design work were requested. Approval of Resolution No. 2004-36 approving amendment No. 1 to the contract with R.W. Beck for the design of the Valley Center Road Pipeline Relocation project in the amount of $98,366 was requested as outlined below:
Costs to date $ 98,415
Anticipated additional costs for completion 70,850
Initial contract amount (70,899)
Requested contract amendment amount $ 98,366
Additional costs to be incurred for the design of the Banbury/Ridge Ranch pipeline relocation will be reimbursed by the County per a letter from Doug Isbell of the County Department of Public Works. In addition, the District will endeavor to obtain reimbursement from the County for additional design costs incurred due to the County’s modifications of the road.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-36
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
APPROVING AMENDMENT NO. 1 TO THE CONTRACT
WITH R.W. BECK FOR THE DESIGN OF THE VALLEY
CENTER ROAD PIPELINE RELOCATION PROJECT
(PROJECT NO. 01-5633.78)
7. Approval to Fill Meter Technician Position:
Upon motion by Aleshire, seconded by Polito and unanimously carried, the Board approved filling the existing Meter Technician position to be vacated by the pending disability retirement of Mr. Leon Pena.
8. Update on the ERAF Tax Shift:
General Manager Arant reviewed that per the agreement negotiated between the Governor, Legislature and local government to balance the state budget, local governments were to contribute $350 million to the State in which $225 million was to come from special districts. At that time, it was anticipated that the special districts’ share would be approximately 40% of the general property tax. Subsequent to this agreement, fire districts and hospital districts received an exemption from the property tax shift formula. This action significantly reduced the yield of general tax revenues and activated a cap in place for the non-exempt, non-enterprise special districts (parks & recreation, mosquito abatement) which limits the total shift to 10% of these agencies’ total revenue.
As a result of the exemptions granted and the cap for non-exempt, non-enterprise special districts, those agencies with tax money left under the 10% total revenue cap will lose additional property tax revenue over the initial estimated 40% share, until the shift of property taxes from special districts reaches the $225 million level. As such, the District and other enterprise special districts that typically have general property tax revenue under 10% of total revenue have become the source for filling the shortfall of special districts’ property tax revenue to be shifted to the state. Per data from ACWA, there are about 150 enterprise special districts statewide that will lose 100% of their general property tax for the next two fiscal years.
The District’s loss of property tax revenue of $1.2 million equates to $26.00 per acre foot based on 46,000 ac. ft. of water sales. With the uncertainty associated with the shift formula, and the possibility of future action by the Legislature to “borrow” the District’s property tax revenue, this revenue source will not be considered a fixed source of revenue and may have an impact upon the District’s bond rating. ACWA will be compiling data to document the affect of the property tax revenue shift upon special districts.
9. Administrative Code Modification to Provide for a Service Jumper for Temporary Water Service:
District Engineer Jewell explained that during construction of a subdivision when the water facilities are completed and accepted into service by the District, water meters and backflow devices installed prior to final grading and landscaping are often damaged. Staff proposed allowing for a “service jumper” to serve as a temporary connection to the District’s service lateral that will provide water during construction in a development prior to completion of the surface improvements.
The jumper is a ¾” unmetered connection that has basic backflow protection and proposed to be installed at a cost of $150 plus $50 per month, or fraction thereof, for water to pressurize the private system. An additional $50 per month would be charged, or fraction thereof, if the water is to be used for irrigation required for runoff protection. Water service for more extensive landscaping needs would be provided through a construction meter.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2004-14
ORDINANCE OF THE BOARD OF DIRECTORS
DISTRICT AMENDING ADMINISTRATIVE CODE
SECTION 160.22 TO PROVIDE FOR “SERVICE
JUMPER” FOR TEMPORARY WATER SERVICE
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
10. Resolution Amending the 2004-05 Budget to Appropriate $1.6 Million for the Corporate Facility Expansion Project:
Adoption of Resolution No. 2004-34 to formally identify a funding source, Master Plan System Improvements Reserve, for the $1.6 million property purchase for the District’s future corporate facility was recommended. This resolution would also set forth the official intent to reimburse the expenditure from proceeds of indebtedness in the future.
RESOLUTION NO. 2004-34
A RESOLUTION OF THE BOARD OF DIRECTORS
AMENDING THE 2004-05 BUDGET BY APPROPRIATING
$1,600,000 TO ACCOUNT 01-5601.78 FOR CORPORATE
FACILITY EXPANSION AND MAKING A DECLARATION
OF OFFICIAL INTENT TO REIMBURSE EXPENDITURES
FROM PROCEEDS OF INDEBTEDNESS
BOARD OF DIRECTORS’ AGENDA
11. Costs Associated with a Recall Election:
Director Aleshire stated that there are recall efforts to remove two Rainbow M.W.D. Board of Directors that will likely cause a special election to be conducted on this issue. He inquired if the costs related to such an election can be assessed those property owners within the affected director’s division rather than all the ratepayers of the agency. General Counsel Cowett will investigate this matter and inform the Board of his findings.
GENERAL MANAGER’S AGENDA
12. GP 2020,
Mr. Jim Chagala, Planning and Land Use Consultant, addressed the Board regarding the land use designation for the District’s Lilac Road property pursuant to the County’s GP 2020 process. Mr. Chagala reported that a County Planner has
indicated he would be recommending a Public-Semi Public Lands designation on the northern parcel of the District’s 33.28 Lilac property and 1 dwelling unit per 2 acres on the southern portion. Mr. Chagala recommended and the Board concurred with a land use designation for the District’s Lilac Road property of 1 dwelling unit per acre for the northern parcels and 4.3 dwelling units per acre for the southern parcel which will be presented to the County Planners at the GP 2020 workshop on Saturday, November 6th.
13. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at 3:52 p.m.
President Board Secretary