VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, October 11, 2006
Time:
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
ROLL CALL
Board members present were: Directors Broomell and Stone. Director Haskell arrived at Directors Polito and Aleshire were absent. Staff members present were: General Manager Arant, District Engineer Grabbe, Project Manager Kilwein, Board Secretary Stetson, IT Specialist Learue and Administrative Assistant Wageman. Spectators present were property owners in the South Village Area and others interested in the proposed Woods Valley Ranch Water Reclamation Facility, as shown on the attendance sheet attached hereto.
1. Workshop on the Proposed South Village Area Wastewater Expansion Project:
General Manager Arant commenced the presentation on the proposed expansion of the Woods Valley Ranch Water Reclamation Facility for wastewater services for property owners in the South Village Planning area with a review/history of the efforts to construct a sewer for the Central Valley Center area since the late 1970s. Milestones in these efforts included: the County imposing a moratorium on septic systems in the Central Valley area, Clean Water Act Grant ($8 million) secured for a sewer system which was rejected by a voter referendum, the County’s efforts throughout much of the 1990s to construct a sewer system funded through an assessment district which was terminated due to its costs, and the County’s approval for the construction of the Woods Valley Ranch Water Reclamation Facility subject to the facility being expandable to serve surrounding properties. The Woods Valley Ranch Water Reclamation Facility is now nearly complete and is expected to be fully operational by January 2007.
In September of 2006, the District’s Board approved the request of Bell Enterprises, Alti Corporation and the Olsons to pursue a private wastewater expansion project to provide reclamation services for their properties located in the South Village Area. In addition, the Board directed staff to continue its efforts to determine the interest of
other property owners in the South Village Area regarding wastewater service through an expansion of the Woods Valley Ranch Water Reclamation Facility and to pursue combining this expansion with the Bell/Alti/Olson proposed wastewater expansion project.
Project Manager Dianne Kilwein reviewed that property owners in the South Village Area had received a package mailed September 22nd from the District containing an outline of the proposed expansion of the Woods Valley Ranch Water Reclamation Facility for wastewater services for their properties which also included a Capacity Reservation Agreement and a list of parcels within the South Village Area with the maximum EDU yield under the current zoning.
A letter had been mailed in January 2005 to property owners in the South Village Area asking for an indication of interest in wastewater service with a deposit of $1,000. From this inquiry, 32 deposits were received. At this time, to proceed with the efforts to secure wastewater service for the South Village Area, interested property owners will have until November 17, 2006, to complete the Capacity Reservation Agreement for each parcel with a deposit of $2,500 per equivalent dwelling unit (EDU). For those property owners who previously provided the $1,000 deposit indicating an interest in sewer, their $2,500 deposit per EDU would be reduced by this amount.
Project Manager Kilwein stated it has been determined, that for the expansion project to be feasible for property owners in the South Village Area, a minimum commitment of 150 EDUs will be required, or 300 EDUs combined with the Bell/Alti/Olson private expansion project. One EDU represents 250 gallons per day of flow to the wastewater system which is the typical usage for a residential home. It was reiterated that properties’ eligibility for EDUs will be based upon the current Country Town Zoning levels due to environmental regulations rather than zoning under GP 2020 which has not yet been adopted by the County. Property owners were cautioned against underestimating the number of EDUs needed for their parcels as additional EDUs may not be available until a subsequent expansion phase, if completed. An EDU bank will be established whereby property owners that over purchased EDUs will relinquish the capacity commitments that can be purchased by property owners needing additional capacity. EDUs will be resold through the EDU Bank at cost with an interest factor applied.
The proposed expansion project’s cost per EDU is estimated at between $35,000 and $40,000 for the pressure sewer mains, treatment capacity, wet weather storage and disposal system. The costs are preliminary with a high level of contingencies included due to the uncertainties such as the level of participation. When the actual project is identified, the project costs will be refined. The cost per EDU for wastewater service does not include the on-site facilities such as the required private pump facility. Project Manager Kilwein emphasized that no one will be forced to
participate in the proposed sewer expansion project. Only those that provide deposits and execute the Capacity Reservation Agreement forms will be included in the assessment district. It was explained that the $2,500 per EDU deposit is at risk in that the funds will be earmarked for the preliminary studies to be undertaken if the project moves forward. In the event that the project does not move forward due to an insufficient participation level or other reason, the deposits will be refunded.
Proposed wet weather storage site options identified in the Master Plan were reviewed. The proposed sites are on the District’s property near the intersection of Lilac and Valley Center Roads and on property south of Betsworth Road. The Regional Water Quality Control Board requires inland discharge wastewater facilities to have 84 days of storage for the rainy months when there is little or no irrigation demands. Disposal areas for the treated wastewater will be the golf course, landscape areas adjacent to roads and recreational fields. Separate lines (purple pipe) are constructed for the reclaimed water in which there is no cross connection with the potable water pipelines.
Project Manager Kilwein reviewed that the $2,500 per EDU Capacity Reservation Deposit will be utilized for:
• Completion of the Master Plan
• Initiate the California Environmental Quality Act (CEQA) process
• Prepare the Preliminary Design Report
• Initiate the Waste Discharge Report
• Initiate the Assessment District formation process
A proposed schedule for the South Village Area wastewater expansion project was presented, which is set forth below:
Nov. 17 Deadline for Capacity Reservation Deposits and
Agreements
Dec. 2006 Update to Board, Determine Feasibility of Project, Define
Project
Jan. 2007 to Preliminary Design Report, CEQA and Permitting
Oct. 2007 Processes
June 2007 Increase Financial Commitment
July 2007 to Design Phase and Assessment District Formation through
May 2008 to Bond Sale
Feb. 2008 to Advertise and Bid Project
April 2008
May 2008 Bond Sale
June 2008 to Construction
Aug. 2009
Sept.–Dec. 2009 Service Available
Sources to fund the proposed expansion project include the initial $2,500 deposit per EDU to complete the discretionary approvals and assessment district formation, an additional deposit in approximately June 2007 (estimated at $2,500 per EDU) for the design phase followed by the assessment district bond sale prior to construction. The 2nd deposit request may be funded through a preliminary assessment district, lien agreement or cash. Formation of an assessment district requires a two-thirds approval vote of those participating parties in which the vote is weighted per EDU. Staff concluded its presentation reiterating that if there is not capacity reservation deposits of at least 300 EDUs (including the 150 EDUs from Bell/Alti/Olson) by the deadline of November 17, 2006, Board action to terminate the public portion of the wastewater expansion project will be considered at that time.
A question and answer period commenced in which staff responded to spectators’ questions, providing clarification as follows:
~ Funding for the 2nd deposit (approximately June 2007) could be through a cash payment, preliminary assessment district or lien agreement.
~ An EDU bank will facilitate property owners’ requests for additional capacity, if available in the EDU bank. An EDU will be sold at its initial cost plus interest.
~ Property owners’ requests for additional EDUs during the preliminary planning phase will not be possible after completion of the Master Plan and Preliminary Design Report. EDUs may be available later through the EDU bank.
~ Properties’ assessment for the project through assessment district financing will be determined based on benefit received (benefit assessment).
~ Operational costs associated with the wastewater treatment plant will be assessed which could either be through a monthly service charge, or wastewater service or standby fee that can be assessed through the property taxes.
~ By December 2006, it will be determined if there is sufficient participation to continue pursuing the proposed expansion project for the South Village area,
as well as who will be included in the project as it may not be feasible to serve some properties that would need construction of an extensive sewer line.
~ 84 days of wet weather storage for the expansion project is a requirement of the Regional Water Quality Control Board. Any additional capacity at the Woods Valley Ranch Water Reclamation Facility will need to meet the required wet weather storage requirements.
~ Beneficial uses for the reclaimed water will be sought. Disposal on the Woods Valley Ranch Golf Course will be maximized and other sites identified such as landscaped areas, agriculture, and recreational fields.
~ Estimated costs for a residential home to connect to the wastewater system with the low pressure system pump will be between $4,000 to $6,000.
The workshop on the proposed expansion of the Woods Valley Ranch Water Reclamation Facility for South Village Area property owners concluded with a reminder that the deadline to submit to the District the Capacity Reservation Agreement forms and $2,500 per EDU deposit is November 17, 2006. The property owners’ response to the proposed expansion project will be evaluated and a determination of the project’s feasibility considered at the December 18, 2006 regular Board meeting.
ADJOURNMENT
2. The meeting was adjourned at
ATTEST: ATTEST:
______________________________ _______________________________
President Secretary