VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, December 19, 2005
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, Stone and Haskell. Director Aleshire arrived at 2:16 p.m. Staff members present were: General Manager Arant, General Counsel Cowett, District Engineer Grabbe, Director of Operations Hoyle, Manager of Accounting Pugh, IT Specialist Rivard, Project Manager Williams and Board Secretary Stetson. Spectator present was Mr. Peter MacLaggan, Poseidon Resources Corporation.
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.
Upon motion by Stone, second by Polito and unanimously carried, the following consent calendar items were approved:
1. Minutes of the Board meeting held December 5, 2005
2. Audit demands
3. Board of Directors’ requests for per diem compensation and reimbursement of expenses
4. Water Purchase Agreement Between the District and Poseidon Resources for Desalted Water:
Resolution No. 2005-41 was presented for the Board’s consideration to approve the Water Purchase Agreement with Poseidon Resources Corporation in which the District would purchase up to 7,500 acre feet annually of desalted seawater. The agreement is a 30-year “take or pay” contract for the 7,500 ac. ft. annually at a cost not to exceed that which would have been paid to the San Diego County Water Authority. As there will not be a direct delivery of the desalted water to the District’s service area, the agreement stipulates that Poseidon must find exchange partners for “in-lieu” deliveries from the Authority’s aqueducts. In addition, Poseidon must secure an agreement from the Metropolitan Water District that the desal. deliveries will not be deemed to be a local supply that could impact access to the discount price for certified agricultural customers (IAWP) provided by Metropolitan.
General Manager Arant stated that the District will use reasonable efforts to assist Poseidon in securing Metropolitan’s subsidy for desal. water. He explained that if the City of Carlsbad exercises its purchase option for the desalination facility adjacent to the Encina Power Station, the District’s option to extend the purchase agreement beyond the 30-year initial term would need to be negotiated with the City, and that the purchase agreement will be transferred if an assignment is made by Poseidon to another party.
Benefits of the purchase agreement for desalted water include that the cost will not exceed the price of imported water and, therefore, there is a long-term potential for savings on the price for water. Further, the purchase of desalted water increases the District’s overall service reliability and supports the development of desalination to the benefit of the region.
The seawater desalination facility proposed to be developed by Poseidon Resources will produce 50 million gallons per day or 56,000 acre feet per year of potable water. The Carlsbad Municipal Water District has entered into a water purchase agreement with Poseidon to receive approximately 21,000 ac. ft. per year of the available supply. Mr. MacLaggan, Sr. Vice President of Poseidon Resources, stated that, in addition to the District’s agreement for the purchase of desal. water, negotiations are ongoing with the Rincon del Diablo M.W.D. and Olivenhain M.W.D. for the purchase of desalinated water from Poseidon Resources. Construction of the desalination facility is expected to begin in early 2007 with the plant operational by late 2008.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2005-41
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
APPROVING A WATER PURCHASE AGREEMENT WITH
POSEIDON RESOURCES (CHANNELSIDE) LLC
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
5. Approval of First Amendment to Lease Agreement with TMO CA/NV for Use of the District’s Montanya Reservoir:
An amendment to the communication site lease agreement with TMO CA/NV for use of approximately 460 square feet of the Montanya Reservoir site was presented for the Board’s adoption. Manager of Accounting Pugh explained that the lease with TMO CA/NV was originally executed in March of 2000 for the installation of cellular antennas on one tower and three smaller structures and related equipment on a portion of the Montanya Reservoir site. The current annual rent is $18,000. The proposed amendment to the lease would allow the addition of a two-foot microwave dish antenna to the existing tower with an additional rent of $1,500 per year.
Upon motion by Polito, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2005-38
RESOLUTION OF THE BOARD OF DIRECTORS OF
MUNICIPAL WATER DISTRICT APPROVING A FIRST AMENDMENT
TO THE LEASE AGREEMENT BETWEEN
MUNICIPAL WATER DISTRICT AND TMO CA/NV AT MONTANYA
RESERVOIR AND AUTHORIZING THE GENERAL MANAGER TO SIGN
6. Administrative Code Changes to Implement the Approved Process Evaluation Recommendations:
Adoption of Ordinance No. 2005-13 was recommended to amend the District’s Administrative Code to implement the process evaluation recommendations regarding high and low water pressure notices and offsite meter relocation agreements, and to clarify procedures for acceptance, approval and installation of water services.
The process evaluations had recommended that with the use of computer generated applications, the high and low pressure recorded documents and Temporary Service Agreements could be eliminated with the “account notice” to notify the customer of either low or high pressure and if the account is serviced by an offsite meter in which the customer is responsible for private water lines. Also, references to the “Offsite Meter Relocation Agreement” were proposed to be eliminated as a meter can be relocated per an owner’s request, a requirement of a developer’s project or due to a District project with the related costs the responsibility of the entity requesting the relocation. The proposed Administrative Code amendments also include notification of an applicant for service of any onsite easements which will assist the District in eliminating encroachment issues. Also, proposed additions to the Code would document the requirement that District facilities must be existing or under construction prior to purchasing a water meter and clarify procedures for acceptance, approval and installation of water services.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2005-13
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING ADMINISTRATIVE CODE
SECTIONS 160.2 AND 160.7
7. Request for Additional Staff for the Engineering Department and Budget Adjustment:
District Engineer Grabbe requested approval to increase staffing in the Engineering Department by two personnel to provide for an Administrative Assistant II position to overlap for approximately 4 months the Sr. Administrative Assistant position due to an impending retirement, and to create and fill a Technical Services Manager position in response to the current and increasing work load. District Engineer Grabbe clarified that the proposed Technical Services Manager would serve as manager of the technical staff and be in charge of inspection, design, plan check, right-of-way, easements and encroachments.
The Administrative Assistant II position would be filled by approximately March 2006 which requires an additional budget allocation of $25,000 for Fiscal Year 2005-06. The Technical Services Manager position, if approved, was proposed to be filled in May or June of 2006 at a cost of $30,000 for Fiscal Year 2005-06. Approval of the position is being requested at this time to finalize space planning needs. Staff will continue to evaluate this position’s qualification requirements and an updated organizational chart will be presented for the Board’s consideration in the spring of 2006.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2005-40
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT AMEND-
ING THE 2005-2006 BUDGET BY APPROPRIATING AN
ADDITIONAL $55,000 TO THE ENGINEERING DEPARTMENT
ADMINISTRATIVE BUDGET FOR STAFFING TRANSITIONS
8. Resolution Opposing Proposed Bond “Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006”:
A resolution opposing passage of “The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006,” as had been discussed at the December 5th Board meeting, was presented for the Board’s consideration. The proposed initiative is for $5.388 billion allocated for a wide range of resource and environmental issues with no funding included for the construction of major water infrastructure. $65 million, or 1.2% of the entire bond, is for planning and design efforts, which, in the future, might result in increased water yields or supply reliability. The resolution states “The California Water Community should collectively oppose this initiative and should only support a future bond proposal which adequately addresses statewide water infrastructure needs, including two of the most pressing issues, which are securing reliable Delta conveyance and constructing additional surface storage for the State Water Project”.
Director Aleshire reported that this proposed initiative will be discussed at the ACWA Region 10 meeting in early January 2006, and will be on the agenda of the next ACWA Executive Committee meeting. The board appointed Director Aleshire to work with the General Manager to modify the resolution opposing the proposed Bond Act for 2006 to more specifically clarify the District’s “oppose” position. Said amended resolution would be subject to the General Counsel’s approval.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, which will be amended to expound on the District’s position of “oppose”, entitled:
RESOLUTION NO. 2005-39
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OPPOSING PASSAGE OF “THE SAFE DRINKING WATER,
WATER QUALITY AND SUPPLY, FLOOD CONTROL,
RIVER AND COASTAL PROTECTION BOND ACT OF 2006
was approved by the following vote, to wit:
9. Report on the Preparation of the Urban Water Management Plan Update for 2005:
The District’s Draft Urban Water Management Plan Update for 2005 is being prepared by Brown and Caldwell. The Draft Plan will be available for public review with a noticed public hearing to be held at the January 17th Board meeting to review comments received and consider adoption of the Plan.
The Urban Water Management Planning Act, which became part of the California Water Code, requires every urban water supplier providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acre feet of water annually to adopt and submit an Urban Water Management Plan every five years to the California Department of Water Resources. In accordance with the Act, the District shall update and adopt its Plan by December 31, 2005, and file the Plan with the Department of Water Resources (DWR) within thirty days of adoption. Though the December 31st deadline for adoption of the Plan will not be met as a result of competing workloads and awaiting data from the San Diego County Water Authority and Metropolitan Water District, the deadline for submittal of the adopted Plan by the end of January 2006 to DWR will be satisfied assuming adoption of the District’s Plan following the Public Hearing on January 17, 2006. General Manager Arant noted that the DWR has been advised of the schedule for adoption of the District’s UWMP.
The 2005 Urban Water Management Plan Update describes the availability of water and discusses water use, reclamation and water conservation activities. The Plan concludes that the water supplies available to the District’s customers are adequate over the next 20-year planning period. The Draft Plan will be distributed to the San Diego County Department of Planning and Land Use, the City of Escondido and the San Diego County Water Authority for their review and comments. General Manager Arant noted that the Urban Water Management Plan can be referenced, if needed, to comply with SB 610 which requires a water supplier to submit a water supply assessment before a draft EIR can be issued for large projects (more than 500 units), as well as SB 221 which requires written verification that water will ultimately be available for proposed developments.
GENERAL MANAGER’S AGENDA
10. Review of Miscellaneous Informational Items:
The District’s Status Report for November 2005 indicates water sales for the month at 3,953 ac. ft. which is 334% above deliveries for November 2004. Backflow devices tested in November were 358 and, utilizing an outside consultant, updates to the District’s valve books and base maps are nearly current. Service connections total 9,861 and sewer connections have increased by 26% in one year. Regarding the PERS funding issue, General Manager Arant reported that the District’s case has been reassigned to a new counsel and that he will be meeting with her in January. The PERS counsel has expressed a goal to find a solution regarding the District’s appeal without going to an administrative law hearing. The feasibility, cost and benefit analysis for a solar energy project at the District’s Betsworth Pumping Station and Lake Turner property is expected to be submitted by mid-December by World Water and Power.
DISTRICT GENERAL COUNSEL’S AGENDA
11. Administrative Code Changes Pertaining to
’ Compensation and Expense Reimbursement:
Proposed amendments to the District’s Administrative Code Article 110, Payment of Expenses Incurred on District Business, to comply with the provision of AB 1234 were presented for adoption. The changes clarify that members of the District Board of Directors are entitled to receive compensation in the form of a per diem for attendance at meetings that constitute the performance of official duties. Receipt of per diem compensation for attendance at conferences and meetings other then meetings of the Board of Directors and committee meetings must be approved by the Board of Directors.
Pertaining to reimbursement of expenses incurred on District business, the Code stipulates that lodging expenses for attending a conference or organized educational activity shall not exceed the maximum published group rate or comparable lodging if the group rate is not available and that directors shall use Government and group rates offered by a provider of transportation or lodging services, when available. Further, expense reimbursement statements submitted by the directors shall be approved by the Board of Directors prior to payment.
Upon motion by Haskell, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2005-15
ORDINANCE OF THE
DISTRICT AMENDING THE ADMINISTRATIVE CODE
ARTICLE 110 TO AMEND PROVISIONS FOR PAYMENT
OF EXPENSES INCURRED ON DISTRICT BUSINESS
BOARD OF DIRECTORS’ AGENDA
Water Authority’s Board of Directors Meeting:
President Broomell reported that at the San Diego County Water Authority’s Board meeting of December 8th he cast the only “no” vote regarding additional expenditures for consulting services, which he thought were excessive to the Authority’s needs. President Broomell questioned the feasibility of the Authority and Poseidon Resources reaching an agreement for the desalination project at the Encina Power Plant becoming an Authority project. He voiced that the Authority should pursue a desalination project at the San Onofre Power Plant with delivery of the desalted water to Orange County and “in-lieu” deliveries to the San Diego region.
13. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 4:02 p.m.