VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, August 21, 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 Cowett, Director of Finance Jeffrey, District Engineer Grabbe, Director of Operations Hoyle, Board Secretary Stetson, IT Specialist Rivard, and Project Manager Kilwein. Spectators present were: Mr. and Mrs. Olson, Ms. O’Rourke, and Messrs. Hilbig, MacLaggan, Lewis, Flynn, Logan and Ross.
CONSENT CALENDAR
1. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held August 7, 2006
• Grant of Easement to San Diego Gas & Electric over a portion of the District’s property on School Bus Road for the benefit of the Valley Center Parks and Recreation District
• Audit demand check numbers 109819 through 109875
• Board of Director’s request for compensation and reimbursement of expenses
ACTION AGENDA
2.
South
Village
Water Reclamation Project’s Status Report:
General Manager Arant reviewed that the developer of the proposed Orchard Run project, D.R. Horton, has withdrawn from the project. At the present time, the owner of the property, Mr. John Belanich, is actively seeking a development partner. The Orchard Run Project was to be served sewer through an expansion of the Woods Valley Water Reclamation Facility and had received approval from the County and the Regional Water Quality Control Board for this sewer service expansion.
As part of the Orchard Run Project, a wastewater force main and reclaimed water return line to connect the property located west of Valley Center Road to the Woods Valley Ranch Treatment Plant were to have been constructed. Negotiations for these two lines to be installed in conjunction with the Valley Center Road improvement project were proceeding with Archer Western, the road project’s contractor. In addition to serving the Orchard Run Project, the two lines will provide water reclamation service to properties in the South Village area that are located west of Valley Center Road. Due to the county’s policy not allowing cuts in newly constructed roads for a three year period, the installation of the wastewater force main and reclaimed water return line across Valley Center Road at this time is considered prudent. As such, staff is evaluating a change order estimate from Archer Western for installation of the lines as part of the Valley Center Road project. If an agreement cannot be reached with Archer Western, a list of contractors is being assembled to seek bids. General Manager Arant stated that once a change order or bid is secured for construction of the lines and financing has been arranged, Board approval will be requested.
The county’s GP 2020 process and its affect on the District’s wastewater master plan and programmatic EIR were discussed. It has been reported that the County has completed its traffic studies and will be working on the EIR for their GP 2020 plan which may be completed in one year. Other reports indicate a time frame for completion of the GP 2020’s EIR to be in two years. The District’s master plan procedures have been focused on master planning a wastewater system based on GP 2020 land use designations. If the GP 2020 environmental documentation were to be completed and certified by the Board of Supervisors prior to completion of the District’s project master plan and programmatic EIR, it would allow reference of the GP 2020 document for the major issues of growth and traffic impacts. In addition, the completion of the GP 2020 Plan would provide participating property owners of the South Village Water Reclamation Project a higher degree of certainty as to land use designations for their respective properties.
District Engineer Grabbe presented options for proceeding with the South Village Water Reclamation Facility, as follows:
Option 1 – Continue to secure financial commitments from the property owners and address the California Environmental Quality Act (CEQA) issues and preliminary project design based on GP 2020 zoning and land uses.
Option 2 – Proceed with securing financial commitments and move forward with CEQA processes and preliminary design, but wait until GP 2020 EIR is completed to finalize CEQA findings and design of the facilities.
Option 3 – Wait for completion of the GP 2020 EIR prior to finalizing the CEQA documents and seeking financial commitments. Preliminary design work would be deferred until completion of the GP 2020 EIR.
The advantages and disadvantages of the three options were reviewed. The timeline for completion of the project is the quickest under Option 1 (1st quarter of 2009), but property owners would be asked to make commitments in advance of GP 2020 and the reclamation project’s EIR would need to address traffic and growth issues. Under options 2 and 3, the reclamation project’s EIR can reference GP 2020 for traffic and growth impacts, but the project’s completion depends on completion of GP 2020. Under option 2, there would be uncertainties for the property owners regarding land use designations and being asked to make participation commitments. Option 2’s time schedule is estimated to be 6 months longer than option 1. Option 3 has the longest completion schedule.
A 4th option was presented in which the demands of the reclamation plant’s expansion would be based on current land use zoning. Upon adoption of the GP 2020 plan, however, property owners may have oversubscribed or undersubscribed for connections to the plant which could be addressed through an EDU bank. Further, to allow property owners to secure sewer commitments in excess of current zoning needs would necessitate a policy change by the Board. The timeline for option 4 is similar to option 1 (early 2009) but is not dependent upon the GP 2020 process. Under option 4, the EIR could be amended once GP 2020 is completed.
Mr. Wayne Hilbig, President of the Alti Corporation, stated that the current proposed zoning under the county’s GP 2020 will equate to sewer connections of 1500 EDUs for all properties in the South Village area, and that the majority of the properties is under the ownership of the Alti Corporation, Bell and Mr. and Mrs. Olson. He voiced that considering the high cost for sewer hook-up, the South Village properties will not cause a large increase in population. Mr. Hilbig reviewed the efforts since 1997 to secure sewer capacity for the Alti Corporation and Bell commercial property on the east side of Valley Center Road through an expansion of the Woods Valley Wastewater Treatment Plant. During this time period, construction of the treatment plant was delayed by the developer of the Woods Valley Ranch and, therefore, expansion of the plant yet to be constructed could not proceed until there were assurances that the treatment plant would be constructed as well as the golf course to accept the treated effluent. In 1999, agreements were executed and funds provided by the Alti Corporation and Bell properties for completion of an expansion study of the Woods Valley Ranch Treatment Plant. This was delayed awaiting resolution of issues regarding the treatment plant which included modifications to the Major Use Permit for redesign of the plant that better accommodates expansion of the facilities that will greatly benefit surrounding properties that wish to participate in future expansion projects.
Mrs. Barbara Olson addressed the Board asking that consideration be given to facilitate sewer service to property owned along Charlan Road. She recounted efforts to secure sewer service for several years noting that she had previously requested to be included in the sewer expansion project for the Orchard Run project which had been denied. It was clarified that the CEQA process had been completed and permits obtained for the Orchard Run project’s expansion of the treatment plant and that meeting CEQA requirements for inclusion of other properties in the expansion would have significantly delayed the sewer expansion project for Orchard Run which was not acceptable to Mr. Belanich, the owner of the property. Additional sewer capacity for other properties in the South Village area, including Alti, Bell and the Olson properties, would be secured through a 2nd treatment plant expansion project However, at the present time, the developer of the Orchard Run project has withdrawn and the project is not moving forward.
Mr. Bill Lewis, Architect, representing the Alti, Bell and Olson properties, stated that this “core group” of owners in the South Village area are willing and able to proceed with a project to obtain sewer service through an expansion of the treatment plant. Mr. Lewis clarified that the sewer expansion would be for properties located east of Valley Center Road. He presented a timeline for expansion of the Woods Valley Wastewater Treatment Plant estimating its completion awaiting certification of the county’s GP 2020 EIR and a timeline in which specific property owners independently pursue a sewer expansion project. A completion date for the construction was estimated at mid-2008 if the expansion project is undertaken by the property owners. Mr. Lewis clarified that all costs for the expansion project would be borne by the three property owners. Expansion of the treatment plant for the Alti, Bell and Olson properties east of Valley Center Road would be for an estimated 150 EDUs. Mr. Lewis noted that the wet weather storage requirements can be satisfied on the properties. General Manager Arant stated that the treated effluent produced from this project could likely be disposed of on the golf course.
Mr. Steve Flynn, representing the Bell properties, clarified that at present it is planned to pursue sewer service for the properties identified on the east side of Valley Center Road. The pipeline sleeve indicated on the map presented by the proponents of the sewer expansion project which traverses Valley Center Road, will be for future expansions for properties on the west side of Valley Center Road, and Mr. Flynn stated he would be receptive to negotiations with the District for its use. Planned development of the Bell commercial property is to construct a grocery store (Major Market) and a few other stores. Mr. Flynn requested that the Board approve the proposal for the Alti, Bell and Olson consortium to move forward with an expansion of the Woods Valley Wastewater Reclamation Plant to serve their identified properties located in the South Village area which are east of Valley Center Road.
General Manager Arant noted that deposits have been collected from other property owners in the South Village area that are interested in sewer capacity and expenditures by the District amount to approximately $99,000 for work that was to benefit a broad number of property owners. Reimbursement for these expenditures could be sought from the expansion project partners. The question was raised concerning other property owners in the South Village area that have indicated an interest in sewer. A letter to property owners to determine interest in the proposed expansion project to give interested parties an opportunity to participate was recommended. An alternative to be considered is that the other interested property owners could participate in a subsequent expansion phase.
The proposals discussed for expansion of the Woods Valley Water Reclamation Facility to serve interested properties in the South Village area will be evaluated and recommendations presented to the Board at a meeting in September.
3. Update on the Proposed Poseidon Resources
Carlsbad
Seawater Desalination Project:
Peter MacLaggan, Senior Vice President of Poseidon Resources, reported that many roadblocks have been cleared for construction of Poseidon’s and the City of Carlsbad’s public-private partnership to construct a 50 million gallon per day desalination plant at the site of the Encina Power Station. Carlsbad’s City Council voted unanimously to certify the Environmental Impact Report and approve the local land use permits for the desalination plant. Also, the San Diego Regional Water Quality Control Board granted an ocean water discharge permit for the Carlsbad desalination plant and an application for the project will soon be forwarded to the California Coastal Commission. It is expected that the Coastal Commission staff members will review the application and request additional information before the application is forwarded to the Coastal Commissioners for action.
Mr. MacLaggan stated that the San Diego County Water Authority’s action on July 27th ended the uncertainty regarding the ownership and operation of the Carlsbad desalination facility. The SDCWA had voted to discontinue efforts to develop its own desalination plant in Carlsbad, terminated negotiations with Poseidon Resources, and reaffirmed its support of Poseidon and the City of Carlsbad’s efforts to develop the 50 million gallon per day seawater desalination project which will reduce the amount of imported water San Diego County currently depends upon. The San Diego County Water Authority has stated it will support securing the subsidy ($250 per acre foot) from Metropolitan Water District for the water produced at the Carlsbad plant. Agreements with Poseidon Resources for the purchase of desalted seawater or “in-lieu” deliveries from the proposed facility have been executed with the City of Carlsbad, Rincon del Diablo M.W.D. and the District and negotiations are on-going with other agencies including the Rainbow M.W.D. Mr. MacLaggan stated that the proposed operational changes at the Encina Power Station will not significantly affect the Carlsbad desalination facility as proposed.
4. Revisions to Emergency Procedures, Article 225 of the Administrative Code, to Provide the General Manager Non-Emergency Authority:
At the Board meeting of August 7th, the General Manager’s authority to act prior to securing formal board authorization in emergency and certain non-emergency circumstances was discussed. Current policy set forth in Article 225 of the District’s Administrative Code, Emergency Procedures, provides that the General Manager may act and authorize expenditures up to $500,000 in an emergency situation wherein conditions threaten to limit or interrupt water deliveries. Staff proposed modification of this Article to expand the emergency authorization provisions to include wastewater services and add sections authorizing immediate non-emergency action under certain specified conditions providing for a financial expenditure of up to $100,000.
Upon motion by Stone, seconded by Aleshire and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2006-11
ORDINANCE OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT AMENDING
THE ADMINISTRATIVE CODE ARTICLE 225, EMERGENCY
PROCEDURES, TO INCORPORATE PROVISIONS FOR
IMMEDIATE NON-EMERGENCY AUTHORITY
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
GENERAL MANAGER’S AGENDA
5. Review of Miscellaneous Informational Items:
• July Status Report – The July 2006 Status Report was presented for the Board’s review. Recycled water at the Woods Valley Ranch totaled 2.8 ac. ft. for July. The monthly status report will include updates on District capital funded projects for each department.
• Cal-PERS - The vote of employees to enhance their Public Employees’ Retirement System plan from 2% at 55 to 2.5% at 55 was not approved by a vote of 43 to 38. An enhanced plan would have been funded by employees at a cost of 3.034% of payroll.
• Pipeline Rupture on Cole Grade Road – A report on the pipeline leak on Cole Grade Road which occurred on Saturday August 19th was provided the Board. At approximately 6:00 p.m., a call was received reporting water flowing on Cole Grade Road, north of Horse Creek Trail. The District’s 14” tar wrapped, cement lined steel pipe with pressure of 160 psi had a hole of approximately 2.5 feet in which approximately 6 ac. ft. of water was lost. Repairs to the pipeline were completed and water service restored, as well as the road repairs completed by 6:30 a.m. the next day. Replacement of the pipeline in Cole Grade Road has been planned, but delayed to coordinate efforts with the county’s planned road improvements and proposed developments that will be required to complete road improvement projects. Timely replacement of the remaining older sections of the Cole Grade Road pipeline will continue to be evaluated.
GENERAL COUNSEL’S AGENDA
6. Proposition 218 Provisions:
General Counsel Cowett stated that the provisions of Proposition 218 and its applicability to increases in water and sewer rates have been debated by many water agencies. As previously reported, the courts ruled that both water and sewer commodity charges are property based fees and, therefore, any proposed revisions to these fees will require a public hearing be held per the provisions of Proposition 218. General Counsel Cowett clarified that no actions are needed until an adjustment in rates is proposed.
ADJOURNMENT
7. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at
4:30 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary