VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, May 15, 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, 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, Pumps and Motors Supervisor Stetson, Accounting Manager Pugh and IT Specialist Rivard. Spectators present were: Wendy Heredia, Principal of the Valley Center Elementary Lower School, Shannon Hargrave, Principal of the Valley Center Lilac School and the Valley Center Fourth Grade poster contest winners and family members, and Dave Ross, Valley Roadrunner Newspaper.
1. Upon motion by Haskell, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held May 1, 2006
• Quitclaim of easement recorded April 25, 1978 (File Nos. 78-164962 and 78-164963) pursuant to completion of the Islands Subdivision and abandonment of District facilities
• Quitclaim of easement document recorded February 25, 1958 in Book 6967, Page 82, to Mr. Gary Lee Peterson pursuant to completion of the Sherwood Ridge Unit 1 Subdivision
• Audit demand check numbers 108606 through 108767
2. Fourth Grade Water Awareness Poster Contest:
As part of the District’s Water Education/Water Conservation Program and in conjunction with Water Awareness Month, a poster contest with the theme
“California’s Water History” was organized. Fourth grade students of the Valley Center Elementary Lower and Lilac Schools were encouraged to submit posters using their imagination to show water use throughout California’s history such as the Native Californian’s planting crops near running streams, the Spanish explorers building Missions that were self-sufficient with reservoirs and flumes to the present time and the importance of water conservation practices.
Executive Assistant Stetson stated that over 250 posters were received from the fourth grade students. From these entries, 3 were selected for top awards and 7 received Honorable Mention awards, as follows:
1st Place Cody King
2nd Place Whitney Wilbanks
3rd Place Marissa Neumann
Honorable Mentions: Alina Gonzalez-Hernandez
Award certificates, ribbons and conservation material were presented to the winners in the poster contest and the 1st, 2nd and 3rd place winners were given U.S. Savings Bonds. Other participants in the poster contest were given a Certificate of Recognition from the District and various water conservation booklets and material. The District’s top 3 posters will be included in the North County Water Agencies’ 2007 calendar in which the 1st Place poster from Cody King will be reprinted as a full page picture for a month in the calendar.
Appreciation was extended to the schools’ principals, teachers and the students’ parents for their support of the District’s water conservation programs.
3. Award of Contract for Repainting of the Exterior and Interior of
Mountain No. 1 Reservoir:
Bids for repainting of the exterior and interior of Paradise Mountain No. 1 Reservoir were received on May 4th with the lowest submitted by J. Colon Coatings, Inc. at $98,700. Adoption of Resolution No. 2006-23 to award the contract to J. Colon Coatings, Inc. for their low bid of $98,700 was recommended in which it was noted that this firm has satisfactorily completed several painting jobs for the District.
Upon motion by Stone, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-23
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AWARDING CONTRACT FOR REPAINTING THE EXTERIOR
AND INTERIOR OF
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
4. Award of Contract for Repainting of the Exterior and Interior of Mountain Meadows #1 Reservoir:
Director of Operations Hoyle reported that bids were opened on May 4, 2006, for the repainting of the exterior and interior of Mountain Meadows #1 Reservoir. The lowest bid received was from J. Colon Coatings, Inc. at $140,400. Approval to award the contract to J. Colon Coatings, Inc. with adoption of Resolution No. 2006-24 was recommended.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-24
VALLEY CENTER MUNICIPAL WATER DISTRICT AWARDING
CONTRACT FOR REPAINTING THE EXTERIOR AND INTERIOR
OF MOUNTAIN MEADOWS #1 RESERVOIR
5. Award of Contract for the Valley Center Road/Lake Wohlford Road Facility Relocation and North Lake Wohlford Road/Kumeyaay Way Pipeline Relocation Projects:
District Engineer Grabbe reported that bids had been opened on May 9, 2006, for the Valley Center Road/Lake Wohlford Road facility relocation and North Lake Wohlford Road/Kumeyaay Way pipeline relocation projects in which the lowest bid submitted was from SCW Contracting Corporation at $148,841.62. The District’s estimate for these projects had been $150,000. Award of contract to SCW Contracting Corp. with the adoption of Resolution No. 2006-22 was recommended. District Engineer Grabbe noted that SCW Contracting Corp. has satisfactorily completed work for the District on other projects.
Upon motion by Polito, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-22
AWARDING THE CONTRACT FOR THE VALLEY
ROAD/LAKE WOHLFORD ROAD
NORTH LAKE WOHLFORD ROAD
PIPELINE RELOCATION PROJECT
General Manager Arant referenced the letter sent to the San Diego County Board of Supervisors on the issue of indirect private funding of County transportation projects which has financially impacted the District. As detailed in the letter, the new transportation fees collected by the county from local private development interests are being utilized to make transportation improvements in the area to offset the impact of the development projects. The County of San Diego will be involved in several transportation improvement projects in the Valley Center area impacting the District’s facilities. General Manager Arant clarified that when District facilities are in the county right of way, facilities that must be relocated as part of a county road project are funded entirely by the District. But, if District facilities in a county right of way must be located because of private development activity, the costs are borne by the private developer. However, the new transportation fees are being collected by the County from local private development interests for transportation improvement projects, and, therefore, water and wastewater facility relocation requirements due to the road improvements are being entirely funded by the District rather than the private developer as the project has become a county-sponsored transportation improvement project though funded by and in response to private development activity. An example is the Valley Center Road Relocation Project. Support from other water agencies throughout the county also impacted by the indirect private funding of county transportation projects will be sought in an effort to receive some consideration such as reimbursement of facility relocation costs based on a percentage that the project was funded by the Traffic Impact Fees. Also, legislation to effect a change in the policy could be pursued.
6. Resolution Supporting Constitutional Amendment Protecting Local Property Taxes and Reserves Dedicated to Water, Wastewater and Wastewater Reclamation Infrastructure:
A request was received from Western Municipal Water District to adopt a resolution supporting permanent constitutional protections for local property taxes and reserves that are dedicated for water, wastewater and wastewater reclamation infrastructure. Western Municipal Water District’s effort to protect water entities’ property taxes was prompted by legislative re-allocation proposals introduced following voter approval of Proposition 1A
Western Municipal Water District has proposed a State Constitutional Amendment to permanently protect the local property taxes and reserves dedicated to the support of local water, wastewater and wastewater reclamation infrastructure. Upon an indication of support from other independent special districts, a legislator will be asked to introduce the constitutional amendment that would be decided by the voters at the next available state-wide general election.
RESOLUTION NO. 2006-25
A RESOLUTION OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER DISTRICT
SUPPORTING CONSTITUTIONAL PROTECTION FOR
LOCAL PROPERTY TAXES AND RESERVES DEDICATED
TO WATER, WASTEWATER AND WASTEWATER
RECLAMATION SERVICES AND INFRASTRUCTURE
7. Overview of the Proposed Fiscal Years 2006-2008 Two-Year Budget:
The District’s two-year budget for Fiscal Years 2006-07 and 2007-08 will be distributed to the Board prior to the Budget workshop scheduled for Tuesday, May 30th. An overview of new programs and capital projects to be requested in the budget were reviewed as summarized below:
Projected water sales are budgeted at 44,500 ac. ft. for FY 2006-07 and 45,400 ac. ft. for FY 2007-08 which represents a 2% increase each year over the average sales for the past five years.
Water rate increases projected based on available data will be adopted to be effective January 1, 2007 and 2008. Estimated water rate increases are: 11.9% in 2007 and 5.4% in 2008 for agricultural customers, and 9% in 2007 and 4.8% in 2008 for M&I customers.
New meter installations anticipated are: 748 in FY 2006-07 and 598 in FY 2007-08 of which the fire system meters represent 385 in FY 2006-07 and 310 in FY 2007-08.
Interest income estimates are an equivalent of $17/ac. ft. in 2006-07 and $18.00/ac. ft. in FY 2007-08.
Based on estimates of electricity and natural gas rates, electricity will average 12.5¢ per kW and $1.19 per therm for natural gas. Current pump zone charges are adequate but a 3% increase in costs for 2007-08 is projected. No change to the pump charges for FY 2006-07 is expected to result in a reduction in the pump reserves by $174,000.
Ten new positions will be requested over the two-year budget; six in 2006-07 and four in 2007-08, which are:
Construction Inspector Engineering Tech. II
Admin. Assistant I Engineering Tech. I
Engineering Tech. II Admin. Assistant II
Accounting Clerk Wastewater Systems Tech. II
Construction Maint. Tech. I (2)
Per the MOU with employees, COLAs of 3% in FY 2006-07 and 4% in FY 2007-08 will become effective.
To complete the capital improvement plan projects, a debt issuance in FY 2006-07 of $8.3 million is anticipated with an estimated annual debt service of $724,000.
Funding requests for capital projects total $5,518,775 in FY 2006-07 and $5,056,700 in FY 2007-08 which are outlined on the attached Exhibit “A”.
With an effective date of January 1st of each year, the monthly sewer service charge for the Moosa Treatment Plant is proposed to be increased by $1.50/EDU or to $40.00/EDU for 2007, and $41.50/EDU for 2008. The STEP maintenance fee will increase by $1.50 both years for a total monthly fee of $33.50 and $35.00 in 2007 and 2008, respectively. These increases are to offset inflation of operating costs.
Lower Moosa Canyon Water Reclamation – Capital Projects
Capital projects proposed in the budget for the Lower Moosa Canyon Water Reclamation Facility total $328,200 in FY 2006-07 and $1,240,300 in FY 2007-08 which include improvements to the digester, aeration system upgrade, and main sewer pipe and transmission line replacements.
Woods Valley Ranch Sewer
Construction of the permanent treatment facility is now under construction. Wastewater in this service area at present is being treated by a holding tank and a temporary 50,000 gpd treatment facility. No change in the monthly charge of $98.60/EDU is proposed which will be collected as a fixed charge special assessment on the property tax bills.
In response to the Board’s inquiries pertaining to additional personnel requests in the budget and debt issuance, information will be provided further justifying the requests for additional staff, as well as a history of the District’s debt issuance and the adopted Long-Range Financing Plan.
GENERAL MANAGER’S AGENDA
8. Review of Miscellaneous Information Items:
~ 2005 Water Quality Report has been printed and, as required by state statute, will be mailed to all customers via an insert in the water bills dated May 15 and 31, 2006.
~ A tour of the District’s facilities will begin on Tuesday, May 16th at 8:45 a.m.
GENERAL COUNSEL’S AGENDA
9. Applicability of Proposition 218 Provisions to Water and Sewer Rates:
General Counsel Cowett reported that a decision is expected this summer on a case being heard in the California Supreme Court concerning the applicability of Proposition 218 procedures; namely, notification requirements for water and sewer rate changes.
BOARD OF DIRECTORS’ AGENDA
10. Report on the ACWA/JPIA Meetings and ACWA Conference:
Directors Aleshire and Stone provided reports on the ACWA/JPIA Executive Committee meetings and the ACWA Spring Conference. Director Aleshire noted that ACWA/JPIA’s training has been highly successful. An additional 10% reduction in workers’ compensation insurance rates was approved. Topics of discussion at the ACWA Conference included the Governor’s Legislation to fund infrastructure improvements (funds for water improvements are for flood protection only), the vulnerability of the Delta and an ACWA water bond. It was concluded from the discussion on the Delta and the Legislature’s lack of leadership on this matter that Southern California needs to develop a contingency plan for the failure of the Delta. ACWA’s leadership in the water industry will be beneficial toward this end. ACWA will be working to amend the Endangered Species Act to change provisions such that species no longer endangered or threatened will be declassified as protected. Such a change will enhance the feasibility of completing more water facility projects throughout the state.
11. Upon motion by Aleshire, seconded by Stone and unanimously carried, the meeting was adjourned at
Tuesday, May 16, 2006
for a tour of the District’s facilities.