VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Tuesday, Ju ly 5, 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, Aleshire, Stone and Haskell. Staff members present were: General Manager Arant, General Counsel Cowett, Director of Finance Jeffrey, Director of Operations Hoyle, District Engineer Grabbe, Board Secretary Stetson and Project Manager Williams. No spectators were present.
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 20, 2005
• Audit demands
• Treasurer’s Report and Financial Statement for the period ended May 31, 2005
2. Approval of Change Order No. 4 for the Meadows Reservoir No. 2:
Project Manager Williams explained that a change order (No. 4) for the Meadows Reservoir No. 2 is being pursued for the realignment of the onsite piping due to the installation of additional safety and security fencing around the existing reservoir ladder assembly and additional piping to connect to an existing outlet on the Meadows Reservoir No. 1 inlet/outlet piping. A change order for this additional work has been negotiated at a cost of $27,167.78.
Board approval of the change order was requested as, per the Administrative Code, cumulative change orders in excess of $35,000 require approval by the Board. Project Manager Williams reviewed that Change Order No. 1 for this project in the amount of $61,815.60 had been approved by the Board in March for inclusion of remedial earthwork and additional compaction under and around the ring footing. Change Order Nos. 2 and 3 had been approved by staff which amounted to $5,872.50 and $25,478.79, respectively. These changes in the scope of work for the reservoir project had been for site grading revisions, installation of slurry backfill and reinforcement over and around the drain line, radiographic inspection services and the upgrade of the site’s electrical panel.
Director Aleshire stated he is concerned that a portion of the added cost for the Meadows Reservoir No. 2 project is the result of adding security fencing around the existing reservoir ladder assembly. He inquired if there is coordination on such projects between the Operations and Engineering departments. The fencing had been installed in response to a security deficiency identified in the District’s vulnerability assessment. However, it is the District’s policy that with major changes there is coordination between the Operations and Engineering departments. General Manager Arant stated that staff will analyze the cost impact of revising the site piping due to the security fencing and procedures to avoid such an occurrence in the future.
Upon motion by Aleshire, seconded by Stone and unanimously carried, Change Order No. 4 to the Meadows Reservoir No. 2 project in the amount of $27,167.78 was approved.
3. Budget Adjustment for the Reidy Creek Pipeline Replacement Project:
Project Manager Williams reviewed that the Reidy Creek Pipeline Replacement project consists of the replacement of approximately 1,700 linear feet of existing 10-inch concrete mortar lined and tar wrapped pipe with approximately 3,000 linear feet of 12- and 8-inch diameter PVC pipe. The new pipeline, located within Le Clair Lane, Monique Way, Espuela Lane and along the western portion of the Escondido Union School District’s property, is substantially complete with only remedial work remaining to be completed.
Additional work added to the project includes connecting relocated meter assemblies to existing house plumbing, roadway maintenance work within the roadways as the result of extensive rains, adjustment to paving quantities, increased soils consultant costs and additional staff time for coordination with the school district, soils consultant and property owners. A budget transfer of $50,000 from surplus funds was requested to fund the additional scope of work and administration costs.
Difficulties experienced on this job with the contractor, SoCal Pacific, were reviewed. General Counsel Cowett explained that with public works contracts, the lowest, responsive, responsible bidder is awarded the contract. Exclusion of a contractor requires a hearing process and clearly demonstrating the performance of the contractor as being non-responsible.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2005-24
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT AMEND-
ING THE 2005-06 BUDGET BY TRANSFERRING $10,000
FROM ACCOUNT NO. 01-5602.78 AND $40,000 FROM
ACCOUNT NO. 01-5603.62 TO ACCOUNT NO. 01-5685.78
FOR THE REIDY CREEK PIPELINE REPLACEMENT PROJECT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
4. Report on the ACWA/JPIA’s Assessment of the District’s Risk Control Practices:
Director of Operations Hoyle reported that the ACWA/JPIA representative, Mr. Peter Kuchinsky, Senior Risk Management Consultant, completed a review of the District’s facilities to assess the District’s liability, property and workers’ compensation risk control practices. Mr. Kuchinsky has reported in writing that previous recommendations such as posting of no trespassing signs and procedures for entry in confined spaces have been addressed. Further, he had no new recommendations and noted that the staff’s attention to detail and commitment to identifying causes of incidents and determination of corrective actions have kept losses to a minimum.
5. Approval of Amended Employment Agreement Between the District and the General Manager:
Upon motion by Aleshire, seconded by Polito and unanimously carried, the “Amended Employment Agreement Between Valley Center Municipal Water District and Gary T. Arant” was approved to be effective July 1, 2005, providing for an annual salary of $162,750 and a performance bonus of $10,000.
GENERAL MANAGER’S AGENDA
6. Review of Miscellaneous Informational Items:
• Use of Board Room for Valley Center Planning Group’s Monthly Meetings. General Manager Arant reported that the Valley Center Planning Group has approached the District concerning use of the District’s Board Room for its monthly planning group meetings (2nd Monday of each month). Some concerns expressed were parking and interference with access to vehicles and equipment needed in a water emergency, securing the audio system, length of meetings and increased maintenance. It was noted that their meetings could be restricted to end no later than 10:30 p.m. and the District’s swing shift operator’s work hours would be modified to begin and end an hour later. In addition, the Planning Group’s chairman indicated that if an issue to be discussed is expected to draw a large crowd, the meeting will be moved to a different location. The District will await completion of the District’s “Facilities Use Agreement” form which stipulates provisions such as providing proof of general liability insurance coverage and would set forth the fee for use of the facilities at which time the application would be considered by the Board.
• Solar Power Program. A preliminary analysis of installing solar power panels was received and the economics are that the payback of the capital expenditure for a 1 megawatt facility is long-term, approximately 15 to 16 years. A proposal from ACWA’s power partners has been solicited to complete a more in-depth analysis. In the analysis, the increased energy reliability will be taken into consideration, as well as the need for installation of a power line from Lake Turner property to the Betsworth Pump Station. The proposal will be presented to the Board for consideration of approval.
BOARD OF DIRECTORS’ AGENDA
Water Authority’s Board Meeting:
President Broomell reported that at the San Diego County Water Authority’s June 23rd Board meeting, their multi-year budget for fiscal years 2005-06 and 2006-07 was adopted. President Broomell noted that he cast the only “No” vote on the budget issue. He expressed his opposition to the budget proposed by the Authority, noting the funds allocated for maintenance of the demonstration garden located at Cuyamaca College ($100,000) and that there are indications that the SDCWA may fund the full operational costs of the garden ($400,000 annual). In addition, $100,000 was approved to evaluate the feasibility of a demonstration garden in the North County. Development of an interactive web site that customers could access to obtain information on appropriate plants for our region is thought to be more effective than a garden and would be more cost effective. General Manager Arant noted that the Authority’s conservation programs are funded through its customer service charge which is based on water sales. Therefore, the District pays for approximately 8% to 10% of the Authority’s conservation programs including the demonstration gardens. Authority staff has been contacted regarding the reduction of the funding level for agricultural water use audits, which may impact the District’s customers. An account of the Authority’s expenditures for its conservation programs and how they are funded (i.e. agric. sales) has been requested. Publication of the San Diego County Water Authority’s practices will be considered.
8. Seawater Desalination Project at the Encina Power Plant:
Director Stone reported that he attended the Carlsbad Desalination Project’s Business and Labor Partnership ceremony on June 24th in which it was publicized that Poseidon Resources had negotiated an agreement with labor organizations for construction of the desalination plant. Metropolitan’s Board will be considering at its next meeting desalination agreements, including one with the San Diego County Water Authority. The complexity is that if Poseidon Resources, the leaseholder of the desal. facilities’ site at the Encina Power Station, and the San Diego County Water Authority cannot come to terms on the regional facility, the Authority’s support of Metropolitan’s subsidy for the project is doubtful. It was noted that Metropolitan’s subsidy, such as for desalination, go to the member agency, which is the San Diego County Water Authority and not to subagencies such as Carlsbad Municipal Water District. The desalination project must also receive approval from the Coastal Commission.
9. ACWA/JPIA Supervisor Certification Program:
Director Aleshire reported that as the District’s ACWA/JPIA representative and Executive Committee Member he receives notice of District employees’ completion of the JPIA Supervisor training. There are 3 levels of the Supervisory training program with each level consisting of 9 classes. Director Aleshire announced that Thad Klimas has completed 2 levels of the program with John Stetson and Rick Beath having completed 3 levels of the Supervisor Certification Program. General Manager Arant noted that the employees receive recognition upon completion of the Certification programs at the monthly employees’ staff meetings.
10. A Closed Session was called to order by President Broomell at
$ Government Code '54956.9(b), Conference with Legal Counsel, Anticipated Litigation
Number of potential cases: 1
The Regular meeting was reconvened at 3:37 p.m. No action was reported.
11. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at