VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, June 5, 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.
Board members present were: Directors Broomell, Polito, Stone and Haskell. Director Aleshire arrived at 2:02 p.m. Staff members present were: General Manager Arant, General Counsel Cowett, Director of Finance Jeffrey, Director of Operations Hoyle, District Engineer Grabbe, Board Secretary Stetson, IT Specialist Rivard, Accounting Specialist Masley and Project Manager Carrillo. Spectators present were Mr. and Mrs. Podobny and Mr. Dave Ross, Valley Roadrunner Newspaper.
1. Upon motion by Stone, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meetings held May 15, 16 and 30, 2006
• Audit demand check numbers 108768 through 108999
• Board of Directors’ requests for reimbursement of expenses and per diem compensation
• Treasurer’s Report and Financial Statement for the period ended April 30, 2006
• Quitclaim of easements – portions of the District’s existing easement documents where District facilities have been abandoned pursuant to completion of the Oak Woodlands Subdivision.
2. Public Hearing to Consider Adoption of District-Wide Water Availability Charge for Fiscal Year 2006-07:
President Broomell opened the public hearing to receive input on the proposed District-wide water availability charge for Fiscal Year 2006-07 at 2:03 p.m. Director of Finance Jeffrey explained that the public hearing on the proposed $10.00 per acre
water availability charge for Fiscal year 2006-07 is conducted to receive written and oral public testimony. Notices of the public hearing on the proposed water availability charge had been published and posted. New property owners since the assessment of the charge the prior fiscal year received notification by direct mail.
The proposed $10.00 per acre/$10.00 per parcel minimum water availability charge will generate approximately $592,000 and is planned to be used for revenue debt service ($107,046), with the remainder ($484,954) used for ongoing capital requirements. An issuance of debt for capital projects in 2006-07 is expected and the water availability charge revenue will be allocated for the annual payments on this debt. Said water availability charge has been collected annually since Fiscal Year 1995-1996. Director of Finance Jeffrey noted that the proposed water availability charge is the equivalent of a $13.30 per acre foot increase in the selling price of water or $5.66 per month on the ¾” meter service charge.
A letter protesting the levy of the proposed $10.00/acre, $10.00/parcel minimum water availability charge was received from Mrs. Pennington (APN 133-440-31).
The District-wide water availability charge is a means to collect funds from undeveloped properties that benefit from its availability and the upkeep and improvements to the District’s infrastructure. The District’s deferment policy from the water availability charge was reviewed. A deferment from the District’s water availability charge is available if the property is a separate legal parcel and is permanently dedicated to open space or it is not now using and there is no intention to use water purchased from the District. A reinstatement of water service for properties that were deferred from payment of the water availability charge requires payment of all deferred availability charges with interest and a 10% surcharge. Deferments from payment of the San Diego County Water Authority’s and Metropolitan Water District’s water availability charges can also be obtained.
Mrs. Nita Podobny of Lakewood, California, stated she is a new owner of property on Indian Creek Way (9.3 acres) and asked if she will be assessed the $10.00 per acre water availability charge as no water is currently used on the property. Director of Finance Jeffrey clarified that the water availability charge is levied on all property in the District. As mentioned previously, a deferment of the water availability charge is available. Property owners that elect a deferment of the water availability charge and subsequently desire water service must pay the accumulated deferred charges plus interest and a 10% surcharge. In response to Mrs. Podobny’s inquiry regarding capital improvement projects that are funded in part by the water availability charges, Director of Finance Jeffrey noted that a second Meadows Reservoir was recently constructed that enhances water service to her property on Indian Creek Way.
The public hearing on the proposed Fiscal Year 2006-07 District-wide water availability charge was closed at 2:09 p.m.
Upon motion by Polito and seconded by Aleshire and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2006-08
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ESTABLISHING WATER AVAILABILITY CHARGES FOR
2006-2007 ON ALL PROPERTY WITHIN THE DISTRICT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
3. Public Hearing on the Woods Valley Sewer Service Area’s Annual Sewer Service Charge:
The public hearing on the Woods Valley Sewer Service Charge was opened at 2:10 p.m. Director of Finance Jeffrey reviewed that in July of 2002, the property owners within the Woods Valley Sewer Service Area approved the Woods Valley Sewer Standby Fee and Sewer Service Charge. The standby fee and service charge finance the operation, maintenance and replacement of the Woods Valley Ranch Water Reclamation Facility. It was explained that undeveloped property is assessed the standby fee and developed property assessed the service charge of which there are currently 220 developed properties within the Woods Valley sewer service area with a total of 220 EDUs.
The 2006-07 budget for the Woods Valley Ranch Water Reclamation Facility requires revenue of $331,296. As such, the proposed assessment for the Woods Valley Sewer Service charge is $1,183.20 per EDU or $98.60 per month which is detailed in an annual report listing the parcels and respective sewer service charge.
Collection of the sewer service charge through an assessment on the property tax bill was recommended. If a majority protest to the sewer service charge is received, the charge may not be collected on the tax roll, but rather would be billed each month on the water bill. No protests to the proposed Woods Valley Sewer Service charge to be collected by the County of San Diego with the property taxes were received. The public hearing was closed at 2:24 p.m.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-26
RESOLUTION OF THE BOARD OF DIRECTORS OF
CHARGE ASSESSMENT FOR 2006-2007 ON PROPERTY
SEWER AREA ON THE
SECURED PROPERTY TAX ROLL
4. Resolution to Set the
Annual Sewer Standby Fee for Fiscal Year 2006-07:
Adoption of Resolution No. 2006-27 to set the Woods Valley Sewer Service Area Sewer Standby Fee for Fiscal Year 2006-07 was requested. Director of Finance Jeffrey noted that in July of 2002, following a public hearing, the property owners within the Woods Valley Sewer Service Area approved the Woods Valley Sewer Standby Fee and Sewer Service Charge which finance the operation, maintenance and replacement of the Woods Valley Ranch Water Reclamation Facility. Undeveloped property within the Woods Valley Sewer Service Area is assessed the Standby Fee which ensures that the developer and interim builders pay their share of the cost of the sewer operation, including future replacement. There are currently 51 undeveloped parcels with a total of 60 EDUs.
The budget for the Woods Valley Ranch Reclamation Facility for Fiscal Year 2006-07 requires revenue of $331,296 in which a Standby Fee of $1,183.20/EDU or $98.60/month will be assessed. The Woods Valley Annual Sewer Standby Fee will be assessed on the property tax bills.
RESOLUTION NO. 2006-27
FEE ASSESSMENT FOR 2006-2007 ON PROPERTY
5. Issuance of Purchase Order for
Fernando Carrillo, Project Manager, reported that bids were solicited for the 36’ x 40’ Engineering Annex Modular building approved in the 2005-06 budget. Bid request packages were forwarded to six firms, but only one bid was received. The bid submitted was from Design Space Modular Buildings at $109,269. The architect’s estimate had been $90,000. It is felt that only one bid was received due to modular building firms’ heavy work schedule to complete school orders throughout the summer months. A cost analysis of the District’s other modular buildings shows that the cost per sq. ft. has ranged from $26.02 in 1990 to $75.88 for the proposed Engineering Annex Modular. The costs are comparable with an adjusted cost per sq. ft. of 5.7% applied for inflation. Staff noted that rebidding the modular building would delay the project an estimated 60 days. Project Manager Carrillo stated that there are sufficient contingency funds in the Engineering Annex Modular Building’s budget to fund the bid amount received.
Upon motion by Aleshire, seconded by Polito and unanimously carried, Purchase Order No. 16537 in the amount of $109,269 to Design Space Modular Buildings for the purchase of a 36’ x 40’ modular building was approved.
6. Adoption of Third Amendment to the License Agreement with Tower Asset Sub for their Communications Site at the Meadows Reservoir Site:
The District has an existing agreement with American Tower for communication equipment at the District’s Meadows Reservoir site. The original ten-year lease had expired on July 31, 2005, which has automatic two-year renewals. American Tower has requested an amendment to the agreement to provide for a ten-year lease period rather than a 2-year renewal period citing better assurance for their subleases. Director of Finance Jeffrey clarified that the annual fee of $30,307 would continue with an annual increase per the CPI.
Director Aleshire questioned the economic benefit of a long-term lease to the District. Director of Finance Jeffrey stated that the current annual fee of $30,307 that is annually increased by the CPI is the highest lease payment received by the District
for its communications site license agreements as it includes two carriers. The ten-year lease period will provide stability for American Tower’s tenants who have increased the District’s lease revenue.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-28
VALLEY CENTER MUNICIPAL WATER DISTRICT APPROV-
ING A THIRD AMENDMENT TO THE LICENSE AGREEMENT
BETWEEN VALLEY CENTER MUNICIPAL WATER DISTRICT
AND TOWER ASSET SUB, INC. AND AUTHORIZING THE
GENERAL MANAGER TO SIGN
7. Review of the
County Water Authority’s Survey of Its Member Agency Water Rates:
A summary of the San Diego County Water Authority’s “Survey of Member Agency Water Rates” prepared by staff was reviewed. The District’s commodity, meter service and meter capacity charges compare very favorably with the 21 Authority member agencies that participated in the survey. The District has the 2nd lowest M&I and the lowest agricultural commodity rates of those agencies that are 100% dependent on imported water and receive all of their water through the authority’s pipelines. A comparison of all the member agencies in the survey, including those with local supplies, shows that the District’s commodity rates are the 5th lowest for M&I and the 2nd lowest for agricultural water. The data are the rates effective as of December 31, 2005.
GENERAL MANAGER’S AGENDA
8. Review of Miscellaneous Informational Items:
General Manager Arant reported on the following miscellaneous informational items:
▪ Valley Center Road Circulation – As part of the General Plan 2020 update, the road circulation element is being reviewed. With the increase in density
provided for in the country nodes, Valley Center Road between Cole Grade and Lilac Roads may have to be expanded to 6 lanes, as well as an expansion of the lanes to portions of Lilac Road and Cole Grade Road. These improvements will be examined as to their affect upon the District’s pipeline replacement projects schedule.
▪ The Carlsbad City Council will consider approval of the Poseidon Resource’s seawater desalination plant’s EIR and permits on June 13th and the Regional Water Quality Control Board will consider approval of the desalination project’s tentative order at its meeting on June 14th. General Manager Arant stated he will testify at the Regional Water Quality Control Board’s meeting urging approval of the project.
▪ San Diego LAFCO has completed its review of the District’s information provided pursuant to the Municipal Service Review and Sphere of Influence Update for Agencies Providing Water, Sewer and Recycled Water in the Bonsall and Pala Hydrologic Subareas. The MSR was initiated in response to the San Luis Rey Municipal Water District’s application to exercise its latent powers. Information submitted by Rainbow Municipal Water District per the MSR is being reviewed by LAFCO.
▪ Valley Center Parks and Recreation District has inquired as to the feasibility of obtaining an easement for a power line within the District’s property along Bus Lane to serve their sports field. During preliminary discussions on this request, it was mentioned that the District will consider granting an easement to the Valley Center Parks and Recreation District in consideration for an easement from Lilac Road across their property to the Orchard Run wet well collection point. This connection could facilitate sewer collection lines for the District’s property and other properties to the north.
GENERAL COUNSEL’S AGENDA
9. Policy Complying With Statute to Give Priority for Service to Developments with Low Cost Housing:
General Counsel Cowett reported that an ordinance will be considered by the Board at a subsequent meeting to adopt a policy to comply with statute that mandates that water districts with limited capacity will give priority to developments that have low cost housing as an increment of the development.
BOARD OF DIRECTORS’ AGENDA
10. ACWA Board of Directors’ Meeting:
Director Aleshire reported that at the June 1 and 2 ACWA Board of Directors’ meeting, it was determined that the Board members will consider adopting a position concerning Proposition 84, the Caves Initiative (Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006), at their meeting on July 28th. As such, the District’s position on this measure should be reaffirmed at the June 19th meeting.
ACWA member agencies have been asked to participate in the “Districts of Distinction” program which is sponsored by the California Special Districts Association. General Manager Arant noted that the program requires that the elected officials and senior management staff of the participating agency attend one of the CSDA’s governing training sessions. The District’s participation in this program will be considered at a future Board meeting.
11. A Closed Session was called by President Broomell at
$ Government Code '54957, Public Employee Discipline/Dismissal/Release
$ Government Code '54957.6, Conference with Labor Negotiators:
Designated Representative: Gary T. Arant, General Manager
Employee Organization: Valley Center Municipal Water
District Employees Association
$ Government Code '54957(b)(1) – Public Employee Performance Evaluation: General Manager, and
Government Code '54957.6 – Conference with Labor Negotiator,
Unrepresented Employee: General Manager
12. The regular Board meeting was reconvened at 4:51 p.m. No action was reported.
13. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at