VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, January 7, 2008
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, and Stone. Directors Aleshire and Haskell were absent. Staff members present were: General Manager Arant, General Counsel de Sousa, District Engineer Grabbe, Director of Finance Jeffrey, Director of Operations Hoyle, Manager of Accounting Pugh, Consumer Services Supervisor Tilley, Board Secretary Stetson, and IT Manager Rivard. Spectators present were: Mr. Gary Knight, Ms. Diane Strand, Mr. and Mrs. Roland Clark, and Mr. and Mrs. Akiike.
1. Upon motion by Stone, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held December 17, 2007
• Concept approval of the Citrus Pointe Subdivision water line extension project consisting of 360 feet of 8-inch water main, one 6-inch fire hydrant and other appurtenances
• Purchase Order No. 17224 in the amount of $47,774.55 to Support Products Services for gas engine heat exchanger replacements for the Valley Center and Betsworth Pump Stations as approved in the 2006-2008 budget
• Audit demands check numbers 116265 through 116530 and wire disbursements for the period October 1, 2007 through December 31, 2007
• Quarterly report of expense reimbursements for the quarter ended December 31, 2007
2. Participation in “The Economic Roundtable” Television Program:
General Manager Arant reported that a proposal was received from Diane Strand of JDS Productions for the District to participate in an Economic Roundtable television program which will be hosted by the San Diego North Economic Development Council. The 1 hour segment would focus on water issues and the impact on economic development. The goal of the Economic Roundtable series is to serve as an educational tool to increase economic awareness and development in and around North County. The production cost for each program is $20,000 and will be available for viewing in 500,000 homes in North County through KOCT-Oceanside Government TV, COX Communications, Time Warner Cable and Time Warner Leased Access TV.
Poseidon Resources Corporation, who is constructing the Seawater Desalting Plant in Carlsbad, has committed $5,000 for the water segment. A segment on water issues could address issues including desalination, agricultural water cutbacks, the Delta Smelt, State Water Project storage, conservation efforts and the drought. At this time, other San Diego Desal. partners are considering a financial commitment toward the water issues segment. The San Diego County Water Authority is very interested in being a participant in the water issue segment and a decision is forthcoming.
Ms. Strand of JDS Productions stated that the 1 hour format of the show on water issues will educate the public on the water issues facing our region. The show’s format was reviewed which would begin with introductions of the guests by a moderator with each having a 3-1/2 minute interview followed by a roundtable discussion. The guest’s or agency’s interview will be available on a CD for further use in presentations and the full segment provided that could also be viewed on the District’s web site.
Upon motion by Polito, seconded by Stone and unanimously carried, the Board approved a commitment of $3,000 for the District’s participation in The Economic Roundtable television program on water issues hosted by the San Diego North Economic Development Council.
3. Consideration of Change to the Interim Agricultural Water Program’s Water Supply Reduction Implementation Plan for Mixed Agricultural/Domestic Customers:
Director of Finance Jeffrey reviewed that the District’s Supply Reduction Implementation Plan had been adopted on November 19, 2007, to affect a 30% cutback in water usage for participants in the Interim Agricultural Water Program based on consumption in the base year of 2006-2007. The Plan provides that for the mixed agricultural/domestic customers, the base year usage, including the first 26 HCF of water billed as domestic consumption, is reduced by 30%, but unused allocations, including the 26 HCF deemed domestic use, is carried forward if unused. As such, the potential carry-forward of the mixed agricultural/domestic 26 HCF of domestic usage effectively converts 60 ac. ft. of domestic water to agricultural use in the cutback year.
Mr. and Mrs. Clark have requested that the District revise its reduction implementation plan to apply the 30% cutback only to the water consumed for mixed agricultural/domestic customers above the monthly 26 HCF domestic usage. An evaluation of this proposal upon the 1,250 mixed agricultural/domestic customers revealed that the change would increase total agricultural allocations by 230 ac. ft. The impact upon the agricultural/domestic customers was summarized as follows:
● 1,220 accounts would receive an average increase of 82 HCF (0.19 ac. ft.) in their annual allocation.
● Of these 1,200 accounts:
▪ 18 would receive an addition of less than 13 HCF (0.03 ac. ft.)
▪ 39 would receive the maximum increase of 96 HCF (0.22 ac. ft.)
● 30 customers would receive no increase in their allocation as they have the minimum allocation of 312 HCF.
Options presented by staff to mitigate the conversion of the 26 HCF domestic allocations to agricultural use were to:
~ Modify the policy to apply the 30% cutback for agricultural/domestic accounts to the monthly usage above the 1st 26 HCF domestic use, and disallow the carry-forward of this monthly domestic use.
~ Ask Metropolitan Water District to allow the carry-forward of unused 26 HCF as domestic use.
~ Exempt only part of the 26 HCF domestic use from the 30% cutback allocation to limit the total increase in agricultural allocations to 230 ac. ft.
The option to disallow carrying forward the monthly 26 HCF domestic usage may be considered unfair as the customers had been told they could carry forward any unused allocations. Due to the tenuous situation at Metropolitan Water District at this time concerning the agricultural program, it was felt it would not be prudent to request that Metropolitan Water District consider modifying the program. And, a partial exemption of the domestic use from the cutback would be difficult to administer.
Mr. Clark questioned using Fiscal Year 2006-07 as the base year for the reduction program in which staff explained that Metropolitan Water District used Fiscal Year 2003-04 as the base measurement period for agricultural water sales which was advantageous to the District and its customers, as during that fiscal year, the maximum agricultural deliveries allowed under the Interim Agricultural Water Program were realized. The San Diego County Water Authority then determined that its member agencies’ supply reduction implementation plans for agricultural deliveries would be based on Fiscal Year 2006-07 agricultural sales which was a dry year with high water usage and would be comparable to current watering needs. Mr. Clark and Mrs. Akiike asked that the District’s supply reduction implementation plan for mixed agricultural/domestic customers be amended to exclude the 1st 26 HCF of domestic usage each month, and apply the 30% reduction on the remaining consumption which was billed at the agricultural rate.
Staff noted that the District’s total agricultural water allocation from Metropolitan Water District for 2008 is 27,858 ac. ft. Under the proposal to amend the reduction implementation plan for mixed agricultural/domestic customers, the District’s agricultural allocations could increase by 290 ac. ft., which includes the potential carry-over of the 26 HCF of domestic usage that would convert to 60 ac. ft. of agricultural allocation and the increase in total agricultural allocations of 230 ac. ft. if the 30% cut back is applied only to usage above the 1st 26 HCF monthly usage. Water loss calculations on agricultural sales may be 5.9%. The District’s budgeted water loss is at 6%. If the proposed change to the reduction implementation plan is adopted for mixed agricultural/domestic customers, it would be hoped that the District’s total agricultural allocation for 2008 is not exceeded which would be achieved if some agricultural customers reduce their usage by more than the requested 30% level. Should the District not meet its 30% reduction level on agricultural sales in 2008, a penalty will be assessed that is a reduction in its agricultural allocation in future years of the cutback program.
Due to the complexity of the issue, staff was directed to include on the next Board meeting’s agenda the continuation of discussion and consideration of a modification of the Interim Agricultural Water Program’s Supply Reduction Implementation Plan for mixed agricultural/domestic customers’ allocations pursuant to the 1st 26 HCF of domestic use.
4. Receipt of Three President’s Special Recognition Awards from the ACWA-JPIA:
General Manager Arant reported that the District received three “President’s Special Recognition Awards” from the Association of California Water Agencies Joint Powers Insurance Authority for the District achieving a low ratio of paid claims and cash reserves to deposit premiums in the Property, Workers’ Compensation and Liability Programs. It is felt that the lower accident rates, liability exposure and operating costs for the District are a result of the Board’s policy of supporting facility and equipment maintenance and upgrades and training programs for implementation of safe practices.
GENERAL MANAGER’S AGENDA
5. Review of Miscellaneous Informational Items:
▪ Approval of a Mitigated Negative Declaration for the Solar Electrical Power program at the District’s Lake Turner site is expected to be considered at the February 4th Board meeting. Notices will be mailed to property owners in the vicinity of the site of an open house to review the project which will be followed by the Board meeting to consider adoption of the Mitigated Negative Declaration.
▪ The Group, Public Officials in Water (POWER), had compiled a report on agencies’ compliance with the California Urban Water Conservation Council’s Best Management Practices and per capita water consumption. The District was among the highest per capita agency at 272 gpd and was given an “F” rating in the report. The member agencies of the San Diego County Water Authority have responded pointing out that calculating the gross per capita usage for an agency without an analysis of intervening factors is misleading. San Diego, and especially the Valley Center M.W.D.’s service area, is diverse with large sparse, rural. and predominantly agricultural areas. The report did not consider a community’s lot size or that in the District there are 30 nurseries that are not participants in the IAWP and, therefore, classified as Municipal & Industrial for water service. POWER will be re-evaluating its report which has not yet been issued.
▪ Metropolitan Water District has issued its Draft Water Allocation Plan which addressed water supply reductions for Municipal and Industrial customers. The Plan as currently drafted contains proposed language that if mandatory reductions are implemented for M&I customers, then the rebate for participants in the Interim Agricultural Water Program would be revoked, and they would still be subject to the higher percentage of supply cutbacks. The Draft Plan will be discussed further and its impact on the future of the agricultural program will be considered. The IAWP providing for the discount for agricultural deliveries did not include the provision for eliminating the ag. discount upon percentage cutbacks to other user classes. The impact upon the agricultural industry will be demonstrated should the discount for agricultural water be eliminated.
6. A Closed Session was called by President Broomell at 3:40 p.m. per:
• Government Code §54956.9(a), Conference with Legal Counsel – Existing Litigation
Claimant’s Name: Peter McLaughlin
• Government Code §54957.5(a), Conference with Labor Negotiators
Agency Representative: Gary Arant, General Manager
Employee Organization: Valley Center M.W.D. Employees’ Association
The Regular Board meeting was reconvened at 4:08 p.m. No action was reported.
7. Upon motion by Polito, seconded by Stone and unanimously carried, the meeting was adjourned at 4:09 p.m.