VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, April 17, 2006
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, Polito, Aleshire, Stone and Haskell. Staff members present were: General Manager Arant, General Counsel de Sousa, Director of Finance Jeffrey, District Engineer Grabbe, Director of Operations Hoyle, Board Secretary Stetson and IT Specialist Rivard. Spectators present were: Messrs. Rolapp and Poore of Rolapp and Associates; Mr. Diven, Best, Best & Krieger; and Mr. Dave Ross, Roadrunner Newspaper.
APPROVAL OF AGENDA
Upon motion by Aleshire, seconded by Polito and unanimously carried, the agenda was revised to move agenda item number 11, review of the proposed debt policy, to the first item under the Action Agenda section.
CONSENT CALENDAR
1. Upon motion by Stone, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held April 3, 2006
• Concept approval of the Evans water line extension project consisting of approximately 400 feet of 8-inch water main, one 1-1/2” water service lateral and other required appurtenances
• Purchase Order #16485 to Electrical Sales, Inc. for the purchase of an electrical panel for the Rincon Pump Station
• Audit demand check numbers 108268 through 108430 and wire disbursements 06-001 through 06-029
• Board of Director’s request for per diem compensation and reimbursement of expenses
• Report of expense reimbursements per Government Code §53065.5
ACTION AGENDA
2. Adoption of Administrative Code Changes Approving the District’s Debt Policy:
Director of Finance Jeffrey reviewed that the proposed debt policy for the District had been presented for the Board’s consideration at the April 3rd Board meeting. In response to the impending debt financing anticipated next year and that several proponents of developments have inquired about the District’s debt financing, a more detailed policy guideline regarding acceptable levels of indebtedness for the District was proposed. As drafted, two sections would be added to the Administrative Code which are: Section 50.3, Debt Policy and Section 50.4, Land-Secured Financing Policy, along with the elimination of the existing verbiage on debt issuance contained in Section 50.2(c).
Section 50.3, Debt Policy, is applicable to all debt of the District. As proposed, debt will be issued only for one-time capital improvement projects and not for recurring operating costs. The District will not pledge its credit for special assessment bonds for developers. Debt will not be used if current revenues and reserves are sufficient, and capital financing will be balanced with maintaining water and wastewater rates at acceptable levels. The types of debt that will be considered are:
• Enterprise-Revenue Bonds for water and wastewater facilities secured by water and wastewater revenues
• Lease-Revenue Bonds for office facilities, secured by lease payments
• Certificates of Participation for any capital facility, representing shares in an installment purchase or lease financing
• Special Assessment Improvement Bonds for special benefit areas, funded by the properties benefited.
Section 50.4, Land-Secured Financing Policy, addresses the use of land-secured financing issued in the name of the District on behalf of specific benefit areas. Only water and wastewater facilities that provide a public benefit and will be owned by the District will be financed. Only Improvement Bond Act of 1915 financing will be used. Community Facilities Districts (CFD or Mello-Roos) will not be considered as special assessment bonds are considered more appropriate for the projects the District might assist in financing. Communication was received from MSK Development Group, management firm for the proposed Live Oak Ranch development, and Mr. Herb Schaffer, proponent of the development at Cole Grade and Valley Center Roads, requesting the District defer action on the proposed debt policy to provide additional time to adequately comment on said policy noting that the formation of 1915 Assessment Districts is significant and complicated. D. R. Horton submitted comments on the proposed debt policy requesting consideration of a reduction in the developer’s equity portion and the ability to finance meter capacity charges, as well as the availability of CFD financing for its assessment flexibility. Staff expressed that
the proposed debt policy for the District and land-secured financing policy provide the guidance and security needed for debt issuances and also facilitates development projects.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2006-04
ORDINANCE OF THE
VALLEY
CENTER
MUNICIPAL
WATER DISTRICT AMENDING THE ADMINISTRATIVE
CODE TO REPEAL SECTION 50.2(c) DEBT AND REPLACE
WITH SECTION 50.3 DEBT POLICY AND SECTION 50.4
LAND-SECURED FINANCING POLICY
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
3. Adoption of Wastewater Service, Statement of General Policy:
General Manager Arant reviewed that the proposed policy for the provisions for wastewater had been discussed at the February 6th Board meeting. Representatives from the Valley Center Planning Group had requested that the language pertaining to extension of wastewater systems be amended to read:
“Actual wastewater service will be extended to properties able to obtain from the appropriate general purpose government written authorization demonstrating specific qualification for, and level of wastewater service for the specific property.”
The revised District Administrative Code Section 170.2, Statement of General Policy, for wastewater service with the above amendment was forwarded to the County of San Diego Department of Planning and Land Use and the Valley Center Planning Group for their review. No additional comments were received.
In addition to the amended Statement of General Policy for the provision of wastewater service, it was proposed to update Article 170 to substitute the words sewer and sewer system with wastewater and wastewater system, respectively. As such, Article 170 would be renamed “Wastewater Service – Rules and Regulations”.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2006-03
ORDINANCE OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING ADMINISTRATIVE CODE ARTICLE 170
TO REVISE ITS TITLE TO “WASTEWATER SERVICE –
RULES AND REGULATIONS” AND TO INCORPORATE A
STATEMENT OF GENERAL POLICY FOR THE PROVISION OF
WASTEWATER SERVICE AND OTHER MINOR MODIFICATIONS
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
4. Approval of Budget Adjustment to Transfer Funds to the
North Lake Wohlford Road/Kumeyaay Way
Pipeline Relocation Project:
Dennis Williams, Project Manager, explained that the North Lake Wohlford Road/Kumeyaay Way project consists of the replacement of approximately 60 linear feet of 6-inch diameter pipe with 12-inch diameter pipe. This project is being completed due to conflicts with a county of San Diego storm drain improvement project.
Initial construction estimates were less than $35,000 and three informal quotes were solicited. One quote was received, but at $89,000 was rejected as it exceeds the maximum amount allowed for informal quotes per the District’s policy. In an effort to obtain more favorable quotes for this relatively small project, the North Lake Wohlford Road/Kumeyaay Way Pipeline relocation project has been combined with the Valley Center Road/North Lake Wohlford Road Facility Relocation project which consists of the relocation of several appurtenances and installation of one mainline valve.
Adoption of Resolution No. 2006-19 was requested to approve the transfer of $135,000 from the Cole Grade Road Pipeline Relocation project to the North Lake Wohlford Road/Kumeyaay Way Pipeline Relocation budget account, and to close the Cole Grade Pipeline relocation account. Project Manager Williams clarified that the Cole Grade Road Pipeline project was in response to the county’s road improvement plans, which are now on hold, and the County does not anticipate moving forward with this project.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-19
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT AMENDING
THE 2005-06 BUDGET BY TRANSFERRING $135,000
FROM ACCOUNT NO. 01-5609.78 (
COLE GRADE ROAD
PIPELINE RELOCATION) TO ACCOUNT NO. 01-5610.78
(
NORTH LAKE WOHLFORD ROAD/KUMEYAAY WAY
PIPELINE RELOCATION)
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Summer 2006 Peak Demand Management Program:
The District’s proposed program to respond to the anticipated peak water demands this summer had been reviewed at the April 3rd Board meeting. During the summer of 2006, it is expected that there will be periods when peak water demands exceed the existing capacity of the treatment plants serving our region. Intermittent water supply shortages of between 4% and 6% may be experienced, depending on weather conditions. The improvement project (Module 7) at the Skinner Treatment Plant that will increase the facility’s treatment capacity by 110 million gallons per day will not be on line until the summer of 2007.
To prepare for the expected summer water supply shortages, a Summer 2006 Peak Demand Management Program was developed. It consists of implementing an education and awareness program to “Beat the Peak” and establishes responses to water conditions ranging from compiling customer calling lists, contacting customers to voluntarily reduce water usage to mandatory reduction of usage until demand is balanced by supply. Customers will also receive notification of the water supply conditions through media contacts, the District’s web page, and, in a prolonged period of water shortage, the District’s electronic sign board will be utilized.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the District’s Summer 2006 Peak Water Demand Management Program was adopted.
6.
San Diego
Region’s Water and Wastewater Internship Program:
General Manager Arant reported that a water and wastewater internship program has been developed by the San Diego County Water Authority and its member agencies which will commence in the fall of 2006. The program will combine attendance at water and wastewater technology classes at Palomar or Cuyamaca Colleges with a paid internship at participating water and wastewater agencies. An active outreach program will be launched at the community colleges, high schools and military organizations to increase the awareness of career opportunities in the water and wastewater fields along with the availability of the regional internship program. Funds will be included in the District’s budget for Fiscal Years 2006-07 and 2007-08 to support the internship program and to fund intern positions.
GENERAL MANAGER’S AGENDA
7. Review of Miscellaneous Informational Items:
~ California’s Water Series – The San Diego region’s KPBS channel will broadcast the first segment of the California’s Water series titled “Climate Change” on Saturday, April 22nd beginning at 5:30 p.m. An ad to promote awareness of the water segments will be printed in the Valley Roadrunner Newspaper and the North County Times. The next series, “Sacramento-San Joaquin River Delta”, will be broadcast on the local KPBS channel on Saturday, May 27th. The District will place additional ads to promote the upcoming series on California’s Water.
BOARD OF DIRECTORS’ AGENDA
8. Resignation of Gary Broomell as the District’s Representative on the San Diego County Water Authority Board of Directors and Appointment of Representative:
President Broomell informed the Board that effective immediately he has resigned as the District’s representative to the Board of Directors of the San Diego County Water Authority. President Broomell has served in this capacity since being appointed by the Board in January of 1992. His current six year term expires on January 13, 2008. Due to the complexity of the myriad of issues the San Diego County Water Authority is involved in, President Broomell stated he will recommend the appointment of General Manager Arant to serve as the District’s representative on the San Diego County Water Authority Board citing his knowledge of the water issues facing the San Diego region and that he often is in attendance at the meetings. Discussion ensued regarding the per diem compensation from the Authority for serving as a Board Member ($150), in which it was concluded that General Manager Arant will not accept a per diem compensation from the San Diego County Water Authority.
Upon motion by Broomell, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-18
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
CONSENTING TO AND APPROVING THE APPOINTMENT
OF GARY T. ARANT AS THE REPRESENTATIVE OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ON
THE
BOARD OF DIRECTORS OF THE
SAN DIEGO
COUNTY
WATER AUTHORITY
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
9. Tour of District Facilities on May 16th:
Facilities to be toured by the Board members on May 16th were discussed. The tour will include viewing of the Woods Valley Ranch Water Reclamation facilities, Moosa Canyon Water Reclamation plant, percolation ponds, Couser Pump Station, Betsworth Pump Station, as well as a demonstration of the automatic meter readers.
ADJOURNMENT
10. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at
3:45 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary