VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Tuesday, January 18, 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.
ROLL CALL
Board members present were: Directors Broomell, Aleshire, Stone and Haskell. Director Polito arrived at 2:05 p.m. Staff members present were: General Manager Arant, General Counsel de Sousa, District Engineer Jewell, Director of Operations Dacus, Manager of Accounting Pugh, Interim Director of Operations Hoyle, Water Facilities Supervisor Stetson, IT Specialist Rivard and Board Secretary Stetson. No spectators were present.
ELECTION OF OFFICERS
1. Upon motion by Aleshire, seconded by Haskell and unanimously carried, Gary A. Broomell was reelected President and Robert A. Polito was reelected Vice President of the Board of Directors.
CONSENT CALENDAR
Upon motion by Aleshire, second by Stone and unanimously carried, the following consent calendar items were approved:
2. Minutes of the Board Meeting held December 6, 2005
3. Resolution No. 2005-01 approving Amendment No. 7 to the District’s “Standard Specifications for the Construction of Water Mains and Facilities”
4. Audit demands and wire disbursements for the period October 1 through
December 31, 2004
5. Treasurer’s Report and Financial Statement for the period ended November 30, 2004
6. Board of Directors’ requests for per diem compensation and reimbursement of expenses
7. Quarterly report of expense reimbursements per Government Code
§53065.5
ACTION AGENDA
8. Award of Contract for the Repainting of the Exterior of Kornblum Reservoir, Exterior of Ridge Ranch Reservoir and Exterior and Interior of Hauck Mesa Reservoir:
Water Facilities Supervisor Stetson reported that bids were opened for the repainting of the exterior of Kornblum Reservoir, exterior of Ridge Ranch Reservoir and the exterior and interior of Hauck Mesa Reservoir on January 4, 2005. Thirty-two requests for bid packages had been requested with eleven bids submitted. J. Colon Coatings, Inc., with a bid of $131,200, was the lowest bidder and award of a contract to this firm was recommended as J. Colon Coatings, Inc. has successfully completed several painting projects for the District.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2005-02
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AWARDING CONTRACT FOR REPAINTING THE
EXTERIOR OF KORNBLUM RESERVOIR, THE EXTERIOR
OF RIDGE RANCH RESERVOIR AND THE EXTERIOR
AND INTERIOR OF HAUCK
MESA
RESERVOIR
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
9. Review of Proposed Sewer Expansion for the South Node Properties:
Property owners near the Woods Valley Water Reclamation Facility have expressed an interest in obtaining sewer service through expansion of the treatment plant and extension of sewer collection lines. In response, the District conducted a feasibility study and requested a statement of interest from interested property owners along with a deposit of $1,000 per parcel. Financial commitments for sewer service had previously been secured from properties owned by Bell Enterprises and the Alti Corporation, as well as expressions of interest from the V.C. Parks & Recreation
District, the Fire Protection District and for the District’s property on Lilac Road. A total of 201 acres have actively requested sewer service with a total estimated flow of 73,475 gallons per day. Sewer costs per equivalent dwelling unit (EDU) have been approximated at $35,000 to $40,000.
Sewering the properties that have requested sewer service would require extension of sewer collection lines past properties that have not requested sewer service. As such, a smaller project that includes properties that have requested sewer service, but with a minimum of requiring properties’ participation in a sewer assessment district as it is a benefiting property, was reviewed. This smaller project encompasses 96 acres with an estimated flow of 42,350 gallons per day. The two main participants, Bell Enterprises and Alti Corporation (representing 31,250 gpd, 72 acres) have indicated they are prepared to proceed as soon as the sewer capacity is made available.
General Counsel de Sousa explained that if an assessment district is utilized to finance the proposed sewer expansion project, an assignment of all the benefits and burdens associated with the assessment to each of the properties within the assessment district is determined. If a sewer collection line is extended adjacent to a property, its benefit and assessment would be determined as part of the assessment district study. A layered assessment district would allow a property’s benefit determined per an allocation of the collection system but not treatment capacity. However, administrative difficulties usually result in later years.
General Manager Arant reported that the Valley Center Planning Group’s Village Subcommittee has recommended that the District’s 4 parcels on Lilac Road be outside of the Village and be zoned public use. The District has requesting a zoning designation of 4.3 dwelling units per acre on the front 2 parcels and 1 dwelling unit per acre on the back parcels. Also, County Counsel has opined that it does not have to be zoned “public use” due to its ownership by a public agency. The Village Subcommittee has now indicated that it will recommend inclusion of the front 2 parcels in the Village and is considering a land use designation of 1 dwelling unit per 2 acres on the front parcels and public use zoning for the back parcels. It was noted that the back parcels will probably be used for mitigation for the District’s future development.
Staff was directed to present for further consideration the boundary of the smaller project previously discussed that encompasses 96 acres and alternatives that include other properties to the North inclusive of the District’s property on Lilac Road that could be added in increments to the sewer expansion project’s boundary. Further, a scope of work will be developed as well as recommendations for selection of a consultant to prepare the initial studies to begin formation of an assessment district.
10. Mid-Year Status Report on the Strategic Plan Specific Goals and Budget Objectives for Fiscal Year 2004-05:
A mid-year status report on the 2004-2005 and 2005-2006 Strategic Plan Specific Goals and the Budget Objectives for FY 2004-05 was reviewed. Of the 58 projects, tasks and programs listed, 13 have been completed and 32 are underway with completion expected by the end of the current fiscal year. Four projects are under the control of an outside agency or timing is determined by the progress of private development projects with 9 being multi-year projects. The projects that are either complete or completion anticipated by the end of Fiscal Year 2004-05 represent 83% of all objectives controlled by the District.
11. Update on the Development of a Long-Range Capital Financing Program:
Manager of Accounting Pugh reviewed that at the November 15th Board meeting, scenarios for the development of a long-range capital financing program to meet the capital facility replacement and expansion needs identified in the District’s 2002 Water System Master Plan were presented. The Board had elected the following listed assumptions in the base scenario of “Bond Financing, Corporate Facility Constructed in 2015” to be presented for review at a future Board meeting along with additional alternative scenarios of: Cal-PERS unfunded liability paid in full in 2005-06, Corporate facility construction deferred to 2019-2020, and a combination of these two additional scenarios:
▪ All Metropolitan Water District and San Diego County Water Authority wholesale rate increases are passed through,
▪ District local costs are offset by an annual inflation adjustment,
▪ The ERAF tax shift of the District’s General Property Tax is offset over a two year period, and the rate increase is sustained to fund the CIP,
▪ Replacement projects are funded over 15 years, at an average of $3.0 million per year plus inflation,
▪ Ultimate projects, including the corporate facility development, will start no sooner than 2015-2016, and will be constructed over an 8-year period,
▪ Cal-PERS “Fresh Start” program,
▪ Increases in the monthly service charges due to increased O&M costs and to offset the loss of property tax revenue.
A comparison graph of water rates with the assumptions of the base scenario and the alternative scenarios reflect no appreciable difference in projected rates through FY 2022-23. One difference (approximately $30/ac. ft.) is the deferment of construction of the corporate facility to 2019-20. Manager of Accounting Pugh stated that if the Cal-PERS unfunded liability is paid in full in 2005-06, the need to issue debt is accelerated by one year. A reduction in the rate assessed under Cal-PERS “Fresh Start” program, currently at 7.75%, is being pursued.
Staff noted that the base scenario “Bond Financing, Corporate Facility Constructed in 2015” with the above listed assumptions is preferred as it provides lower debt service expenses and lower water rates for the next seven years, provides greater capacity for debt issuance in the future and reduces debt coverage requirements, providing more flexibility in setting rates in the future. The Board concurred with this proposed base scenario that will be utilized in the development of a capital plan for review at a future Board meeting.
BOARD OF DIRECTORS’ AGENDA
12. ACWA Region 10 Meeting:
Director Aleshire reported that on January 13th an ACWA Region 10 meeting was held to discuss the draft of ACWA’s “Blueprint for California’s Water Future” and to receive comments and adopt a set of Region 10 endorsed comments on the document. The purpose of the document is to provide the water community’s vision for how California can meet its future water needs. The Blueprint is intended to serve as an action plan for policy makers, legislators, the governor and others to follow to address the many challenges confronting California’s water supplies.
13. Amendments Introduced to Reform Pension Plan:
Two constitutional amendments, ACA 5 and ACA 1X, addressing pension system reforms have been introduced. Both measures require that public employees hired on or after July 1, 2007, be enrolled only in defined contribution plans which would eventually replace the defined benefit plan. To minimize administrative expenses should these proposed amendments be adopted, the District would endeavor to have both programs administered by Cal-PERS.
ADJOURNMENT
14. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 3:50 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Board Secretary