VALLEY CENTER MUNICIPAL WATER DISTRICT
Adjourned Regular Board Meeting
Tuesday, May 12, 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 and Stone. Directors Aleshire and Haskell were absent. Staff members present were: General Manager Arant, General Counsel Akins, District Engineer Grabbe, Director of Finance Jeffrey, Director of Operations Hoyle, Board Secretary Stetson and IT Manager Rivard. Audience members present were: Messrs. Meredith, Wolfsheimer, Palacus, Velasquez, and Holtz.
APPROVAL OF AGENDA
General Manager Arant announced that Agenda Item No. 2, Resolution Certifying Mitigated Negative Declaration for the Lake Turner Solar Power Project, will be deferred until the next Board meeting as Director Polito has a conflict of interest and cannot participate in the discussion or vote on this matter; therefore, there was not a quorum present to consider the matter.
CONSENT CALENDAR
1. Upon motion by Stone, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meetings held April 7 and 21, 2008
• Audit demand check numbers 117944 through 118235
ACTION AGENDA
2. Lilac Ranch Development – Request for Concept Approval of the Water and Wastewater Facilities, Participation in the Upsizing of Facilities and Budget Adjustment:
A request for concept approval of the Lilac Ranch Development’s water and wastewater facility improvements that will serve a 354 lot residential subdivision has been received. Project Manager Williams clarified that the Board will consider:
• Issuing concept approval of the project;
• Authorizing staff to enter into associated development agreements, and
• Allocating funds for the replacement and relocation of certain existing
facilities within the development.
A Preliminary Design Report has been submitted by the developer which sets forth the development’s water distribution system, relocation of existing facilities, wastewater collection system, wastewater treatment plant and possible recycled water distribution systems. The development is located in the Keys Creek basin between Lilac and West Lilac Roads and will provide an opportunity to relocate the VC-1 A/B aqueduct connection and replace the 18-inch transmission mains that serve the Lilac zone.
It is proposed that water facilities to be replaced as part of the development project and as identified for replacement in the District’s Water Master Plan be jointly funded by the District and the developer for the facilities’ replacement and relocation. Project Manager Williams noted that the proposed facility improvements impact three large District facilities, which are the Hauck Mesa Feeder, Lilac Reservoir Feeder and Bingham Mesa Pump Station Feeder. A portion of the facilities proposed to be replaced and upgraded located outside of the development would be funded by the District. The District’s share of the proposed facilities totals approximately $2.17 million. Joint participation agreements will facilitate the relocation of all of the facilities within the County’s right-of-way, District easements or District fee property. The developer will fund all costs for the design, review and construction of the required facilities within the development. Revenues generated (meter capacity fee) from the development represent nearly half of the annual debt service of the District’s participation amount.
Staff clarified that granting concept approval of the water and wastewater facilities proposed to serve the Lilac Ranch development does not guarantee water availability for the project but rather provides conceptual approval of the overall design of the facilities and associated general financial arrangements.
Due to the current and foreseeable water shortage conditions throughout the State, the developer for the Lilac Ranch development will be required to prepare a Water Supply Use and Conservation Plan to minimize the use of potable water, which will require the developer to:
• Comply with current County of San Diego landscape design ordinances
• Minimize irrigated landscaping within common and open spaces
• Minimize turf areas in common and private use areas
• Incorporate in-home and outside water conservation devices
• Maximize the use of recycled water
• Pay water demand offset fees
• Develop a water-wise landscape education program
• Evaluate use of on-site well water for irrigation
• Provide an estimate of net new water demand
A water supply availability letter will include the stipulation that reads: “This project is being brought forward in a period of rising uncertainty about the availability of water over the next 3 to 5 years and beyond. The granting of concept approval is not a guarantee of availability of water to actually supply the development in the future, but is limited to the conceptual approval of the overall design of water, wastewater and water reclamation facilities needed to serve the development and the associated general financial arrangements.”
Wastewater facilities to serve the 360 equivalent dwelling units will consist of a series of 8-inch and 12-inch diameter collection pipelines, laterals, lift station and a 4-inch diameter force main. The wastewater flows are estimated at 90,000 gallons per day.
Effluent produced by the treatment plant will meet Title 22 requirements with the recycled water disposed of by landscape irrigation, wet weather storage and/or percolation ponds. An estimated 430 acres have been identified as potential use areas for the recycled water. An analysis indicates that the recycled water demands will exceed the wastewater treatment plant discharge. As such, potable water or groundwater will augment the recycled water.
The required agreements to be executed between the District and the developer for the Lilac Ranch development include the District Facilities Agreement, Water Reclamation Facilities Agreement and the Recycled Water Agreement. Project Manager Williams reviewed the function of the agreements, as follows:
District Facilities Agreement:
~ Establishes in-tract facilities to be constructed
~ Establishes facilities to be oversized at District request and provides the basis for District participation
~ Requires developer to design and construct all facilities to District standards
~ Requires developer to fund all costs for design and construction
~ District to accept facilities for ownership, operation and maintenance upon completion
Water Reclamation Facilities Agreement:
~ Wastewater Treatment, Disposal and Seasonal Storage Facilities to be constructed
~ Requirements to develop a taxing authority for collection of Standby Wastewater Fees for lots not connected to the collection system
~ Requirements to develop a taxing authority for collection of Standby Wastewater Fees for lots connected to the collection system
~ Requirements for the developer to fund all costs for design and construction to District standards
~ Timing of connection through approval of the County Agency Clearance letter and Hold Harmless letters
Recycled Water Agreement:
~ Sale, purchase and use of the recycled water produced by the treatment of the wastewater generated by the development.
An Environmental Impact Report (EIR) for the Lilac Ranch development will be prepared by the project’s proponent. The proposed development’s schedule estimates that by 2009 the preliminary design for the wastewater treatment plant, grading plans and improvements plans will begin and in approximately June of 2010 the grading will commence. In 2011 it is anticipated that underground improvements, construction of the wastewater treatment plant, and water relocations will commence and construction of homes beginning in 2012.
Staff recommended that the Board approve issuing concept approval of the Lilac Ranch development’s water and wastewater improvements as described in the Preliminary Design Report, adopt Resolution No. 2008-13 allocating $2,170,000 for the relocation and upsizing of facilities impacted by the project, and approve reimbursement of the project’s expenses from the proceeds of future bond sales.
Mr. Meredith of Sage Communities, developer of the Lilac Ranch development, addressed the Board and provided historical information on the Ranch. He noted that the property has been owned by the Wolfsheimer family since the 1940’s. Use of the land has ranged from animal breeding, a retreat and cattle raising. Its present size is 909 acres and the residential development proposed is on the property’s least environmentally sensitive areas. Five neighborhoods are proposed to be developed ranging from 40 to approximately 80 units. Sixty percent of the property will be dedicated to open space. Per the County’s standards, all lots will have access to both Lilac Road and West Lilac Road which will be improved as part of the development project. Also, land will be set aside for parks and a new fire station. In approximately one year, the design guidelines will be developed for the proposed Lilac Ranch development. Mr. Meredith acknowledged that at this time there is no guarantee of water for the proposed Lilac Ranch development, but he is optimistic that the state’s and region’s water supply problems will be solved. Mr. Meredith stated that the Board’s concept approval of the project will allow proceeding with the County to the preliminary design of the project.
Upon motion by Polito, seconded by Stone and unanimously carried, concept approval of the proposed Lilac Ranch development’s water and wastewater facilities as described in the Preliminary Design Report was granted, and the allocation of $2,170,000 for the relocation and upsizing of facilities impacted by said project was adopted, by the following resolution, entitled:
RESOLUTION NO. 2008-13
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE FY 2006-08 BUDGET TO ALLOCATE
AN ADDITIONAL $2,170,000 TO THE PARTICIPATION,
UPSIZING AND UNSPECIFIED REPLACEMENT
PROJECT ACCOUNT (NO. 01-5602.78) FOR
PARTICIPATION IN THE LILAC RANCH PROJECT
by the following vote, to wit:
AYES: Directors Broomell, Polito and Stone
NOES: None
ABSENT: Directors Aleshire and Haskell
GENERAL MANAGER’S AGENDA
3. Review of Miscellaneous Information Items:
• Emergency Storage Project – The San Diego County Water Authority has constructed, as part of its Emergency Storage Project, a Pump Storage Project/hydroelectric station that will allow the pumping of water from Lake Hodges to the Olivenhain Storage Facility and then reverse the flow to generate hydroelectric power. There is concern that the water quality problems in Lake Hodges will negatively impact the water quality in the Olivenhain Reservoir. Olivenhain Municipal Water District’s treatment plant is not designed to accept the high levels of turbidity and organic material that is currently in Lake Hodges. The San Diego County Water Authority Board directed its General Manager to meet with the Santa Fe Irrigation District, San Dieguito Water District, Olivenhain Municipal Water District and the City of San Diego regarding the storage issue and the Reservoir Regulating Manual for the Emergency Storage Project.
• San Vicente Dam Raise Project – The Authority board certified the Final Environmental Impact Report for the raising of the San Vicente Dam to expand its storage capacity by 50,000 acre feet. Financing bonds were issued totaling $625 million at an interest rate of 4.8% to fund the project.
• IAWP Water Supply Cutback – From January 1st through April 30, 2008, approximately 6,500 acre feet of water has been delivered to IAWP customers. Credits in excess of the IAWP participants’ 30% cutback allocations total 2,894 acre feet or reduced deliveries to IAWP accounts totaling 31.5%. There are 192 customers that have exceeded their allocations for a total of 54 acre feet in excess of allocations. Per the District’s Water Supply Reduction Plan, 46 flow restriction notice letters were mailed. Staff has been working with these customers (adjustment of future months’ allocations) resulting in there being four flow restrictors that will be installed on a nursery account. The importance of the District meeting its 30% cutback in IAWP supplies was discussed to avoid increased reductions to those customers that exceeded their allocations.
• First Amendment to the Solar Energy Agreement – Final amendments to the Solar Energy Agreement with World Water & Solar Technologies were negotiated that provide an extension of the agreement’s term to 25 years, inflation factor was reduced to 2.5% in the last 5 years of the agreement, and established that construction will commence no later than July 30, 2008.
BOARD OF DIRECTORS’ AGENDA
4. Report on ACWA Conference:
Director Stone stated that he had attended the ACWA 2008 Spring Conference and reported that he attended many pertinent sessions on the current water crisis in California. They included an attorneys’ panel titled “New Rules for the Delta, The Wanger Decision, Delta Vision and Beyond”, a session on managing water in the legal maze, and a panel “Assessing the Future of the Sacramento-San Joaquin Delta”. Though plans that will improve the state’s water problems are available, reaching a consensus on this matter in order to proceed with the improvements has continued to be difficult and likely will be litigated. ACWA’s Regions 8, 9 and 10 that represent Southern California will jointly become more proactive in the state’s many complex water issues.
ADJOURNMENT
5. Upon motion by Polito, seconded by Stone and unanimously carried, the meeting was adjourned at 3:31 p.m.
ATTEST: ATTEST:
_____________________________ _____________________________
President Secretary