VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, June 2, 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.
ROLL CALL
Board members present were: Directors Broomell, Polito, Stone and Haskell. Director Aleshire was absent. 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 Manager Rivard, Project Manager Williams, and Accounting Specialist Masley. Spectators present were: Wendy Heredia, Principal of the Valley Center Elementary Lower School, Shannon Hargrave, Principal of the Valley Center Lilac School, the Valley Center Fourth Grade poster contest winners and family members, and Pat Miller and Dave Ross, Valley Roadrunner Newspaper.
CONSENT CALENDAR
1. Upon motion by Polito, seconded by Stone and unanimously carried, the following consent calendar items were approved:
· Minutes of the Board meeting held May 12, 2008
· Audit demand check numbers 118314 through 118516
· Board of Director’s request for reimbursement of expenses and per diem compensation
PRESENTATIONS
2. Fourth Grade Water Awareness Poster Contest – Presentation of Awards:
A poster contest for the fourth graders of the Valley Center Elementary Lower School and Valley Center Lilac School was held as part of the District’s Water Education/Water Conservation Program. The students were asked to convey the importance of water with the theme of “Water is Life”. Approximately 225 posters were received from the 4th grade students that illustrated the importance of water for all living things and the need to use water wisely. From the entries received in the poster contest, 3 were selected for top awards and 8 received Honorable Mention recognition, as follows:
1st Place: Heidi Panek
Valley Center Lilac School
2nd Place: Kory Kratz
Valley Center Elementary Lower School
3rd Place: Olani Leonard
Valley Center Elementary Lower School
Honorable Mentions: Jillian Finstuen
Clara Padinske
Aubrey Yates
Gabrielle Chiarello
Trent Reilly
Brittany Jensen
Tony Robinson
Jamie Brown
Award certificates, ribbons and conservation material were presented to the winners in the poster contest and the 1st, 2nd and 3rd place winners received 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’ 2009 calendar. The students, teachers, parents and Principals Heredia and Hargrave were thanked for their support of the District’s water education/conservation programs.
PUBLIC HEARINGS
3. Public Hearing to Consider Adoption of District-Wide Water Availability Charge for Fiscal Year 2008-09:
President Broomell opened the public hearing to receive input on the proposed District-wide water availability charge for Fiscal Year 2008-09 at 2:12 p.m. Director of Finance Jeffrey explained that the public hearing on the proposed $10.00 per acre availability charge for Fiscal Year 2008-09 is conducted to receive written and oral public testimony. Notices 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 $591,000 and is planned to be used for revenue debt service ($104,434), with the remainder ($486,566) used for ongoing capital requirements. Said water availability charge has been collected annually since Fiscal Year 1995-96. Director of Finance Jeffrey noted that the proposed water availability charge is the equivalent of a $17.33 per acre foot increase in the selling price of water, or an average increase of $5.58 to the monthly fixed meter charge.
As of the date and time of the public hearing, no protests had been received for the District-wide Water Availability Charge for Fiscal Year 2008-09. There were no comments from the audience.
The public hearing on the proposed Fiscal Year 2008-09 District-wide water availability charge was closed at 2:14 p.m.
Upon motion by Polito, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2008-03
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ESTABLISHING WATER AVAILABILITY CHARGES FOR
2008-2009 ON ALL PROPERTY WITHIN THE DISTRICT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
4. 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 2:15 p.m. Director of Finance Jeffrey reviewed that in July 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. There are currently 253 developed parcels within the Woods Valley sewer service area using a total of 253 EDUs.
The 2008-09 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/month which is detailed in an annual report listing the parcels and respective sewer service charge. The remaining balance would come from the Sewer Standby Fee which will be presented as a separate item.
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 Ranch Sewer Service Charge to be collected by the County of San Diego with the property taxes were received. The public hearing was closed at 2:17 p.m.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-20
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING THE WOODS VALLEY SEWER SERVICE CHARGE
ASSESSMENT FOR 2008-2009 ON PROPERTY WITHIN
THE WOODS VALLEY SEWER AREA ON THE
SAN DIEGO
COUNTY
SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
ACTION AGENDA
5. Resolution to Set the Woods Valley Annual Sewer Standby Fee for Fiscal Year 2008-09:
Adoption of Resolution No. 2008-21 to set the Woods Valley Sewer Service Area Sewer Standby Fee for Fiscal Year 2008-09 was requested. Director of Finance Jeffrey noted that in July 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 Ranch Sewer Service Area is assessed the Standby Fee which insures that the developer and interim builders pay their share of the cost of the sewer operation, including future replacement. There are currently 18 undeveloped parcels, one being the golf course club house, with a total of 27 EDUs.
The budget for the Woods Valley Ranch Reclamation Facility for Fiscal Year 2008-09 requires revenue of $331,296 in which a Standby Fee of $1,183.20/EDU or $98.60/month will be assessed. The revenue requirement for the Woods Valley Ranch Reclamation Facility is collected through a combination of the Standby Fee and a sewer service charge on developed parcels. The Woods Valley Annual Sewer Standby Fee will be assessed on the property tax bills.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-21
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING THE WOODS VALLEY SEWER STANDBY FEE
ASSESSMENT FOR 2008-2009 ON PROPERTY WITHIN
THE WOODS VALLEY SEWER AREA ON THE
SAN DIEGO
COUNTY
SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
6. Adoption of Fixed Charge Special Assessments for Assessment District 96-1 and Authorization to Lien Parcels for Unpaid Water and Other Services:
Resolution No. 2008-22 was presented for adoption to establish the District’s fixed charge special assessments for Assessment District 96-1 (Treasures at Castle Creek – improvements to the Lower Moosa Canyon Wastewater Treatment Facility) to meet the principal and interest obligations of the debt, and authorizing the District to add delinquent and unpaid charges for water and other services on the property taxes for 2008-09 of the property using the water or service.
An assessment on the 200 parcels in Assessment District 96-1 of $724.76 per parcel for 2008-09 is needed to meet the principal and interest obligations of the bonded indebtedness. The Water Code authorizes the District to add delinquent and unpaid charges for water and other services to the property taxes of the property using the water or service. The delinquency must be unpaid for at least 60 days and have had a lien recorded against the property. Eight parcels with a total delinquency of $70,985.03 are eligible to be placed on the tax roll.
Upon motion by Polito, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-22
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING FIXED CHARGE SPECIAL ASSESSMENTS FOR 2008-2009
ON PROPERTY WITHIN ASSESSMENT DISTRICT NO. 96-1 AND ON
PROPERTY FOR UNPAID CHARGES FOR WATER AND OTHER SERVICES
PURSUANT TO STREETS AND HIGHWAYS CODE SECTIONS 8680
AND 8682 AND WATER CODE SECTIONS 72094, 72100, 72102
ON THE SAN DIEGO COUNTY SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
7. Resolution Revising Change Order No. 6 to the Valley Center Road Pipeline Replacement Project:
Project Manager Williams addressed the Board requesting approval to revise Change Order No. 6 to the Valley Center Road Pipeline Replacement Project that had been approved in February of 2008. Change Order No. 6 had been approved in the amount not to exceed $100,000 to the reimbursement agreement with San Diego County per the agreement for the County to relocate the District’s water transmission and distribution facilities in conjunction with completion of the road improvements. Archer Western Construction is under contract with the County to construct the Valley Center Road improvements that includes the replacement of the District’s affected facilities.
Change Order No. 6 had been approved to allow the replacement of approximately 240 linear feet of 24-inch diameter pipe south of the Keys Creek Bridge, which was not included in the replacement project’s initial scope of work, but was found to be deteriorated and in need of replacement. Negotiations with Archer Western Construction for the work has been negotiated to $210,000 and the contractor is unwilling to further reduce the cost even though there are inconsistencies including an approximate $30,000 cost for the installation of casings that are the responsibility of the County. As a result, pursuing the change order on a time-and-material cost basis is proposed. The District will maintain control of the labor and equipment used on the job thus being responsible for only those costs associated with the approved work. Project Manager Williams noted that District staff has estimated that the cost of the Change Order No. 6 work will be approximately $150,000 which reflects rising costs and a more defined scope of work.
Funds are currently available in the adopted budget for the Valley Center Road Pipeline Replacement Project for the additional work and adoption of Resolution No. 2008-26 was recommended to authorize Change Order No. 6 to the reimbursement agreement with the County on a time-and-material basis at a cost not to exceed $210,000.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-26
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE VALLEY CENTER MUNICIPAL WATER
DISTRICT APPROVING CHANGE ORDER NO. 6 TO
THE CONTRACT WITH THE COUNTY OF SAN DIEGO
FOR THE CONSTRUCTION OF THE VALLEY CENTER
ROAD PIPELINE RELOCATION PROJECT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
8. Resolution Clarifying Controls Pertaining to Changes in Appropriations for the Various Funds for the Budget:
The District’s Operating and Capital Budget for Fiscal Year 2008-09 was adopted on May 19, 2008. Language included in the budget message pertaining to budget controls had been discussed and staff had been directed to amend the message to provide clarification. Resolution No. 2008-25, if adopted, would clarify that:
• the General Manager may reallocate budget items to respond to changed circumstances, provided any single modification in excess of $35,000 shall require approval by the Board, and
• the Board must authorize any increase in the overall budget and any increase in the number of authorized permanent personnel positions above the level identified in the final operating and capital budget.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-25
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
CLARIFYING CONTROLS ON CHANGES IN
APPROPRIATIONS FOR THE VARIOUS FUNDS
FOR THE OPERATING AND CAPITAL BUDGET
FOR THE FISCAL YEAR 2008-2009
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
9. Ordinance to Incorporate the Changes Per the Adopted Fiscal Year 2008-09 Budget in the Administrative Code Pertaining to Authorized Staffing Levels:
The District’s adopted budget for Fiscal Year 2008-09 included a reduction of authorized staff positions from the 90 approved positions in the two-year 2006-2008 budget to an authorized level of 80 positions. Director of Finance Jeffrey clarified that the Administrative Code had been amended to reflect 86 authorized positions as approved in the first year of the two year budget, but was not modified to reflect the total of 90 authorized positions in the second year of the 2006-2008 budget as filling the positions was delayed due to the slowdown of activities and the state’s water situation.
Ordinance No. 2008-04 amends the Administrative Code to incorporate the authorized staff level of 80 positions as approved in the Fiscal Year 2008-09 budget and the District’s Organizational Chart reflecting the authorized positions and details the positions’ reporting relationships.
Upon motion by Polito, seconded by Haskell and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2008-04
ORDINANCE OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT AMENDING
THE ADMINISTRATIVE CODE TO PROVIDE FOR CHANGES
IN AUTHORIZED STAFFING LEVELS FOR THE FISCAL YEAR
2008-09 BUDGET
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
10. Adoption of Memorandum of Understanding Between the District and the Employees Association for Fiscal Years 2008-09 Through 2012-2013:
Adoption of Resolution No. 2008-24 approving the Memorandum of Understanding (MOU) between the District and the Valley Center Employees’ Association was requested. The MOU covers the period of Fiscal Years 2008-2009 through 2012-2013. The MOU provides for:
• An annual cost of living adjustment (COLA) for the five-year period based upon the average of the LA/Riverside and San Diego Consumer Price Indexes with a 2.5% minimum and 4.5% maximum COLA for each year.
• A salary survey to be conducted in Fiscal Year 2011-2012 utilizing an outside consulting service.
• Modifications in the major medical and dental insurance programs for employees hired on or after the effective date of the MOU.
• Amendment to the call back policy reducing payment for after hours phone calls requiring up to ¼ hour.
• Implementation of the 9/80 workweek that will become effective July 5, 2008,
• Conversion of the District’s post retirement medical program for employees hired on or after July 1, 2008, to a new defined contribution plan
• The provision of a training range and designation of provisional employee for certain position classifications and salary range adjustments for the General Services Technician positions.
General Manager Arant noted that Administrative Code changes will be presented at the next Board meeting to incorporate the amendments per the MOU with employees, and miscellaneous updates.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-24
MEMORANDUM OF UNDERSTANDING BETWEEN THE
EMPLOYEES’ RELATIONS OFFICER OF VALLEY CENTER
MUNICIPAL WATER DISTRICT AND THE VALLEY
CENTER MUNICIPAL WATER DISTRICT EMPLOYEES’
ASSOCIATION 2008-2009, 2009-2010, 2010-
2011, 2011-2012 AND 2012-2013 FISCAL YEARS
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: Director Aleshire
GENERAL MANAGER’S AGENDA
11. Review of Miscellaneous Information Items:
~ At the San Diego County Water Authority Board of Directors meeting of May 22nd, the Board did not take action on the request to set formal terms and conditions for the annexation of property to the Lakeside Water District. The matter will be reconsidered by the Board following a review of its annexation policies with consideration of water supply impacts. At the June 26th Authority Board meeting, a hearing will be held on its rates and charges to be effective January 2009. The wholesale water costs are expected to increase 15%-16%.
~ District staff will be evaluating proposals that may be funded by developers to offset their new net demands on the District’s water supplies. They include treating the wastewater flows at the Lower Moosa Canyon Water Reclamation Plant to tertiary treatment levels and distribute the treated effluent to surrounding golf courses. Currently, approximately 220,000 gallons per day of the wastewater treated to secondary standards at the Moosa Treatment Plant is delivered to the perc ponds. Another project that will be considered is the activation of the Lake Turner wells and, combining the output with wet weather discharge from the expanded Woods Valley Ranch Wastewater Plant, create a nonpotable service area.
~ A report on the status of Interim Agricultural Water Program (IAWP) customers’ usage for the month of May was provided. 294 customers were over their monthly allocation by a total of 116.4 acre feet. $96,000 in penalties were collected. Two additional meter flow restrictors were installed for a total of 6 restrictors installed on accounts that have exceeded their allocation levels per the District’s IAWP Supply Reduction Implementation Plan. The District is currently at 12% under its allocation.
DISTRICT GENERAL COUNSEL’S AGENDA
12. Conservation Ordinance:
General Counsel Cowett reported that a report is being prepared to address conservation ordinance issues including conservation water rates and compliance with Proposition 218.
CLOSED SESSION
13. A Closed Session was called by president Broomell at 3:20 p.m. pursuant to:
● Government Code §54956.8 – Real Property Transaction, Conference
with Negotiator
Property: 11580 Betsworth Road, Valley Center
Agency Negotiator: Gary T. Arant, General Manager
Negotiating Party: Solar Power Partners
Under Negotiation: Terms of Lease
● Government Code §54957(b)(1) – Public Employee Performance Evaluation: General Manager, and
Government Code §54957.6 – Conference with Labor Negotiator,
Unrepresented Employee: General Manager
RECONVENE
14. The Regular Board meeting was reconvened at 4:14 p.m. There was no reportable action.
ADJOURNMENT
15. Upon motion by Polito, seconded by Haskell and unanimously carried, the meeting was adjourned at 4:15 p.m.
ATTEST: ATTEST:
___________________________ ___________________________
President Secretary