VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, November 6, 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, and IT Specialist Rivard. Spectators present were: Messrs. Hoagland, Christopher, Ziegues, Ross and Eastman.
1. Upon motion by Stone, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meetings held October 2 and October 11, 2006
• Quitclaim of easement over property owned by Julie Bettis (a portion of document No. 79-103290, recorded March 12, 1979)
• Quitclaim of easements pursuant to the Sherwood Ridge Subdivision where the District has abandoned portions of the existing 12-inch water main
• Audit demand check numbers 110534 through 110857 and wire disbursements 06-062 through 06-097 for the period July 1, 2006 through September 30, 2006
• Treasurer’s Reports and Financial Statements for the periods ended August 31, 2006, and September 30, 2006
• Board of Director’s request for per diem compensation
• Quarterly report of expense reimbursements per Government Code §53065.5
• Report on the District’s assessed values for Fiscal Year 2006-07 compared to FY 2005-06
• Annual report of properties with deferral of water availability charges per Administrative Code Section 165.2(d)3
• Filing of the Notice of Completion for the Paradise Mountain No. 1 Reservoir Exterior and Interior Repainting Project
2. Review of the Draft Policy Perspectives on the Potential Consolidation of Lands Currently in and Adjacent to the San Luis Rey Municipal Water District:
General Manager Arant reviewed that the Local Agency Formation Commission is completing a Municipal Service Review (MSR) for the Bonsall and Pala Hydrologic subareas pursuant to the San Luis Rey Municipal Water District’s application to exercise its latent powers to provide water and wastewater service. The San Luis Rey M.W.D. does not directly provide water and wastewater services within its boundaries but governs and protects its groundwater rights. The purpose of the MSR is to determine the most optimum and cost effective way to provide water and wastewater services to the land within and adjacent to the boundaries of the San Luis Rey Municipal Water District (SLRMWD). Among the options being considered are: SLRMWD exercising its latent powers for retail water and wastewater services, annexation of the property within the SLRMWD to either Rainbow M.W.D. or Valley Center M.W.D. or annexing portions of SLRMWD to both water districts.
The San Luis Rey M.W.D. formed an ad hoc subcommittee for evaluation of the water and wastewater service provider for the San Luis Rey area. Directors Broomell and Stone were appointed as the District’s Ad Hoc subcommittee members to meet with the SLRMWD subcommittee members. A preliminary meeting of the two ad hoc subcommittee members was held to discuss issues associated with the possible consolidation of the SLRMWD and other adjacent properties with the District. As a result of this meeting, the District has drafted a preliminary policy perspectives to address how core issues will be administered if a consolidation between the District and the SLRMWD were to move forward. This draft “Policy Perspectives on the Potential Consolidation of Lands Currently In and Adjacent to the San Luis Rey Municipal Water District” was presented for the Board’s review and input prior to presentation at the next Ad Hoc subcommittee meeting. The key issues addressed in the draft policy perspectives were reviewed as outlined below:
~ Governance – Governance of lands annexed into the District for retail water and wastewater services would be by the District’s Board of Directors. An option that would be considered is expansion of the board to seven members for a transitional period (approximately 8 years). In this manner, two representatives from the SLRMWD on the District’s Board would facilitate communication and the transition period. The Board would revert to five members at the end of transitional period with the election divisions reapportioned based on population.
~ Groundwater Rights – The significant groundwater in the San Luis Rey basin is currently used for agricultural irrigation and limited domestic use. It was proposed to preserve and secure the groundwater rights of the overlying property owners for agricultural purposes which would be established through agreements and/or LAFCO’s Conditions of Annexation. It is anticipated that the Metropolitan Water District and the San Diego County Water Authority, as conditions of annexation, will require that the groundwater would continue to be put to beneficial use. As such, as the lands transition from agricultural to residential/commercial uses (M&I), the right to use groundwater would be assigned to the District as a condition of receiving water service from the District for M&I purposes. It was noted that the groundwater is not suitable for domestic use without extensive treatment including demineralization which could become more cost effective in the future.
~ Financial Considerations – All expenses for the annexation (studies, documentation, environmental studies, analysis, engineering and administrative costs, etc.) will be funded by the properties to be annexed. Consideration will be given in the calculation of the District’s annexation fee for the extensive system to be constructed and financed to serve the annexing properties and that the annexed land will not benefit from any District existing water and wastewater systems. An exception, however, is the District’s general corporate facilities and properties south of the San Luis Rey River that may utilize existing District facilities. Separate accounting would be maintained for the annexed properties for financing, operating costs and revenues, which would provide accountability for the District’s existing customers as well as the landowners in the annexed area.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the Valley Center Municipal Water District’s Draft “Policy Perspectives on the Potential Consolidation of Lands Currently In and Adjacent to the San Luis Rey Municipal Water District” was adopted.
3. Review of Preparations for Aqueduct Shutdown Period and Water Use Restrictions:
Metropolitan Water District’s treated water aqueducts that deliver water to the District’s service area will be shut down from November 26 to December 7, 2006 to allow for work at the Skinner Treatment Plant. In response, in order to insure an adequate supply during this period for health and fire safety, all outdoor landscape/lawn irrigation will be prohibited, as well as use of water for agricultural purposes and construction water. Also, unnecessary domestic use will be prohibited such as spraying driveways, washing vehicles and filling fountains, pools, spas or ponds.
Pre-Shutdown preparations were reviewed by the Director of Operations Hoyle, which include:
• Notification of the shutdown period water use prohibitions and restrictions via personal phone calls (top users, nurseries, golf courses, grove managers, developers, schools and Indian Reservation, homeowners’ associations), automated calls (voice broadcasting system), and a direct mailing to customers.
• Messages will be posted at local businesses, message boards and on the District’s web site. In addition, the message boards will be placed in the Meadows, Cole Grade Road, Old Castle Road and Valley Center Road.
• Agricultural customers will receive e-mail notification of the use restriction and developments’ irrigation meters will be shut off. Non-potable water stations at Lake Turner will be set up.
• An ad will be placed in the local Roadrunner Newspaper, door hanger messages used in housing developments, and a new after hours phone message with shutdown information utilized.
• Operational preparations implemented are: facility improvements to the Jesmond Dene PRV Station and Jesmond Dene Pump Station, reservoir altitude valves adjusted and calibrated, by-pass valves checked and pump availability ensured. Maps have been prepared to patrol the District’s service area for compliance with the water use restrictions. Prior to the shutdown, the District’s water storage facilities will be maximized.
• During the shutdown period, the District’s Emergency Operations Center’s hours of operation will be extended, if needed, as well as additional time in which personnel will respond to customers’ calls. Field crews will patrol the District’s service area beginning at 5:00 a.m. until 11:00 p.m. to ensure compliance with the shutdown provisions. Water levels will continuously be monitored and updates will be provided customers through phone calls, the message boards, phone message and web site. Also, based on water levels and the shutdown schedule, the District will work with nurseries and agricultural customers and coordinate the granting of limited waivers for growers, if possible.
The expansion and improvement project at Metropolitan’s Skinner Treatment Plant is expected to be completed in 2007 which will add another 110 MG of treated water supply for the region. Also, the San Diego County Water Authority’s Twin Oaks Treatment Plant will be on-line in 2008. These projects will provide added operational flexibility for our region which will enable water demands to be met with limited supply reductions during future aqueduct shutdowns.
4. Review of Pending Reimbursement Agreements:
District Engineer Grabbe informed the Board that currently there are eight reimbursement agreements being processed. Reimbursement agreements are executed when developers build facilities that can also benefit properties outside of the development. The reimbursement agreement provides for the establishment of a Special Service Connection Charge (SSCC) for facilities constructed by the developer, collection of the SSCC when benefiting properties connect and for the reimbursement of the collected funds to the developer.
The District Facilities Agreement with the developer includes the terms and conditions regarding the reimbursement procedures. Upon establishment of the proposed reimbursement agreement’s service area and SSCC, notification is sent to property owners in the proposed service area. The project’s final Reimbursement Report and Special Service Connection Charge are then presented to the Board for approval.
The costs eligible for reimbursement are stipulated in the District Facilities Agreement which includes all reasonable and appropriate costs such as design, review, construction, inspection and administration. Interest expenses after final acceptance shall not be included. (It was noted that interest does not continue to accrue as there is not a deduction for depreciation of the facility improvements.) The developer shall be eligible for reimbursement from the District for a period not to exceed ten years from the date of final acceptance of the project. Maps displaying the pending developers’ (proponents) properties and the Special Service Connection Charge service areas of those properties that can benefit from the improvements were reviewed.
Staff was directed to process changes to the District’s reimbursement agreement policy to extend the term of the agreement with the developer from ten to twenty years.
GENERAL MANAGER’S AGENDA
5. Report on the
Authority Board Meeting:
General Manager Arant reported that the San Diego County Water Authority’s position on desalination is that the Carlsbad desalination project is considered a local project and other desalination project opportunities will continue to be evaluated. The concept of the Carlsbad desalination project being considered a local project in which Poseidon Resources markets the desal. water directly, but excess desal. water would be delivered to other member agencies through a contractual agreement with the San Diego County Water Authority has been raised and is under consideration.
GENERAL COUNSEL’S AGENDA
6. Incompatibility of Office Issue:
General Counsel Cowett reviewed his memo in which he had opined that “The offices of General Manager of a Member Agency Water District and Director of the County Water Authority Board of Directors are not incompatible”. Further, he found that if the offices are ruled to be incompatible by a court in the future, the votes of a General Manager while serving as a Board Member of the Water Authority would not be invalidated. General Counsel Cowett explained that directors of the Water Authority serve specifically as representatives of their district, and there is no incompatibility with Water Authority Board Members acting in a representative capacity. The Water Authority’s Act states: “the board of directors shall consist of at least one representative from each public agency, the area of which is within the authority.” The San Diego County Water Authority Act provides that if there is a conflict on an issue, the representative is to recuse himself/herself.
General Manager Arant reported that the consensus of the San Diego County Water Authority’s Board members is that each agency should be able to appoint who they want as their representative on the Authority board. A letter has been mailed to Assembly Member Plescia requesting the attorney general be requested to suspend the preparation of a response to the previously requested opinion on incompatibility of office for a general manager or city manager serving on the board of directors of a county water authority as the representative of a member agency. The letter requesting the attorney general’s opinion had been submitted without the approval of the Authority board. The Authority Board decided to request a San Diego legislative member to introduce a spot bill in the event the attorney general rules there is an incompatibility of office with respect to a General Manager or City Manager of a Member Agency Water District serving as an agency’s Director on the County Water Authority Board of Directors. The spot bill would amend the San Diego County Water Authority Act to specifically permit General Managers or City Managers of a member agency to serve as their agency’s director on the Authority Board.
7. A Closed session was called by President Broomell at 3:40 p.m. pursuant to:
● Government Code §54956.8, Conference with Real Property Negotiator
Property: APN 186-602-04
Agency: Gary T. Arant, Valley Center M.W.D.
C. Michael Cowett, District General Counsel
Property Owner: Stephen and Sandra Tueting
The Regular Board meeting was reconvened at 3:47 p.m., and the following action was reported:
8. Approval of
of Surplus Property to Tueting:
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the Agreement of Purchase and Sale between the District and Tueting was approved which executes the sale of 0.49 acre surplus property within the District’s Lake Turner property to Mr. and Mrs. Tueting for the appraised value of $15,000.
9. Upon motion by Polito, seconded by Haskell and unanimously carried, the meeting was adjourned at