April 20, 2009
VALLEY CENTER WATER DISTRICT
Regular Board Meeting
Monday, April 20, 2009
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 Vice President Polito at 2:00 P.M.
ROLL CALL
Board members present were: Directors Polito, Aleshire and Stone. Director Broomell arrived at 2:14 p.m. and Director Haskell was absent. Staff members present were: General Manager Arant, General Counsel Cowett, District Engineer Grabbe, Director of Operations Hoyle, Director of Finance Jeffrey, Board Secretary Stetson, Manager of IT Pilve and Consumer Services Supervisor Tilley. Spectators present were: Mrs. MacKenzie and Messrs. Steinbeck, Gaughan and Ross.
APPROVAL OF AGENDA
Per Board approval, agenda item Nos. 2 and 3, Water Supply Shortage Response Level 2 Declaration – The Impacts on Existing and New Accounts and LAFCO Independent Special Districts Election for Regular and Alternate Special District Members, were reordered to commence discussion upon President Broomell’s arrival.
CONSENT CALENDAR
1. Upon motion by Stone, seconded by Aleshire and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held April 6, 2009
• Audit demand check numbers 121969 through 122109 and wire disbursements for March 2009
ACTION AGENDA
2. Resolution Approving Increase in Legal Services Fees from Best, Best & Krieger:
Per Board direction, an increase in the legal services fees from Best, Best & Krieger based on the Consumer Price Index change for the San Diego area is considered annually with any change approved effective July 1st. The CPI for the San Diego area for the year ending December 31, 2008, increased 3.9%. Staff recommended approval of the increase in legal services fees noting the excellent service received, Best, Best & Krieger’s wide range of services, and that the legal fees are comparable to fees paid by other agencies.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-19
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
ADOPTING AN AMENDMENT TO THE AGREEMENT
WITH BEST, BEST & KRIEGER, LLP, TO APPROVE
AN INCREASE IN THE FEES FOR LEGAL SERVICES
was adopted by the following vote, to wit:
AYES: Directors Polito, Aleshire and Stone
NOES: None
ABSENT: Directors Broomell and Haskell
3. Approval of Budget Adjustment for the Replacement of Pumps at the Pfau Pump Station and Purchase Order No. 17746 for the Pfau Pump Station Equipment:
Specifications had been prepared for a constant speed package pumping system to replace the existing horizontal split case pumps at the District’s Pfau Pump Station with vertical turbine units as approved in the Budget. Quotes were received from four manufacturers to pre-purchase the equipment with installation by District forces, as follows:
Mitchell Lewis & Staver Co. $114,557
Flowtronex $142,295
Hidden Valley Pumps, Inc. $168,040
Syncroflo $168,825
District Engineer Grabbe informed the Board that a letter was received on Friday, April 17th, from Mitchell Lewis & Staver Co. informing the District that they must withdraw their Pfau Booster Pump Station bid as it had been inadvertently submitted in a region with a local distributor, thus competing against the distributor. Withdrawal of the bid is permitted as this project is acquisition of the pumps. It was noted that if this had been a public works project, a withdrawal of the bid would not be so permitted.
Staff recommended approval of Purchase Order No. 17746 to Flowtronex in the amount of $142,295 for the Pfau Pump Station equipment and Resolution No. 2009-20 to modify the 2008-09 budget with a transfer from the Lilac Pump Station Upgrades Project Account ($165,000), and the Pump and Motors Replacements account ($55,000), to a new account for the Pfau Pump Station Upgrade project (01-5604.78).
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-20
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT AMEND-
ING THE 2008-09 BUDGET BY TRANSFERRING $55,000
FROM THE PUMP & MOTOR REPLACEMENTS ACCOUNT
(01-5669.78) AND $165,000 FROM THE LILAC PUMP
STATION ACCOUNT (01-5682.78) TO A NEW ACCOUNT
(01-5604.78) PFAU PUMP STATION UPGRADES PROJECT
was adopted by the following vote, to wit:
AYES: Directors Polito, Aleshire and Stone
NOES: None
ABSENT: Directors Broomell and Haskell
4. Adoption of an Identity Theft Prevention Program:
Director of Finance Jeffrey reported that per regulations issued by the Federal Trade Commission, the District must adopt an “Identity Theft Prevention Program” by May 1, 2009. The District is required to comply with this regulation as utility accounts are included in this provision as a creditor of customer accounts. Staff recommended adoption of Resolution No. 2009-18 implementing the District’s Identity Theft Prevention Program. Director of Finance Jeffrey noted that the District does not request any personal identifying information other than contact information such as name, address, telephone number and bank account bill payment information. As such, no significant changes are anticipated with adoption of the Identity Theft Prevention Program other than training of staff in the Program’s requirements and periodic review.
Upon motion by Stone, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-18
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ADOPTING AN IDENTITY THEFT PREVENTION PROGRAM
was adopted by the following vote, to wit:
AYES: Directors Polito, Aleshire and Stone
NOES: None
ABSENT: Directors Broomell and Haskell
5. Ballot Election for a Regular and Alternate LAFCO Special District Member:
A mailed-ballot election is being held for a San Diego Local Agency Formation Commission (LAFCO) Independent Special District Regular Member and Alternate Member. Nominated candidates for this position are:
Regular LAFCO Special Districts Member
John Ingalls (Santa Fe Irrigation District)
Charles W. Muse (Helix Water District)
Alternate LAFCO Special Districts Member
Tom Bumgardner (Valley Center Parks & Recreation District)
Tim Geiser (Deer Springs Fire Protection District)
Martin Marugg (Alpine Fire Protection District)
Jo MacKenzie (Vista Irrigation District)
Gary Croucher (Otay Water District)
The nominating committee recommended John Ingalls for the Regular Special Districts Member and Gary Croucher for the Alternate Special Districts Member.
Jo MacKenzie of Vista Irrigation District and candidate for LAFCO Alternate Special Districts member addressed the Board requesting the District’s support for her election of Alternate Special Districts member in the upcoming LAFCO election. She stated that she is experienced and knowledgeable of County planning issues and the Cortese/Knox/Hertzberg bill that governs LAFCOs which are responsible for coordinating, directing and overseeing changes to local governmental boundaries, including annexation and detachment of territory, incorporation of cities, formation of special districts, and consolidation, merger and dissolution of districts. Mrs. MacKenzie’s experience includes serving on the LAFCO Independent Special Districts Advisory Committee since 1994, currently as Chair, the California Special Districts Association as well as the Vista Irrigation District Board of Directors.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the Board supported casting the District’s vote in the LAFCO Independent Special Districts election for: John Ingalls, Regular LAFCO Special Districts Member, and Jo MacKenzie, Alternate LAFCO Special Districts Member.
6. Review of the Impacts Upon Existing and New Accounts Upon the Declaration of a Water Supply Shortage Response Level 2:
General Manager Arant reviewed that the Metropolitan Water District Board voted on April 14th to impose Level 2 of the MWD Water Supply Allocation Plan at a 13% reduction in deliveries to its member agencies to be effective July 1, 2009. With this action, the District’s Interim Agricultural Water Program participants will remain at a 30% reduction level compared to the base year of Fiscal Year 2006-07 and those that elected to opt-out of the IAWP but remain in the San Diego County Water Authority’s Special Agricultural Water Rate program will be required to reduce consumption by 13% compared to the Fiscal Year 2006-07 base year. Metropolitan’s action to impose the 13% reduction was based upon a 20% State Water Project allocation. However, in May 2009, revised State Water Project allocation numbers will be released. Since the Metropolitan Water Board meeting of April 14th, the deliveries from the State Water Project have increased from 20% to 30% deliveries of supply contracts or an approximate 200,000 ac. ft. increase from the SWP for Metropolitan. This additional water supply may be kept in storage to offset shortages next year in the event it is a dry year.
The San Diego County Water Authority Board of Directors is expected to take action at its April 23rd meeting to declare a Level 2 of its Water Supply Shortage ordinance with specific member-by-member supply reductions (to be determined) that will be effective July 1, 2009. The reduction to full-price customers from the SDCWA will be attenuated by the Authority’s alternate sources of supply; including, the All American Canal, Coachella Canal lining water, the Imperial Irrigation District water and secured transfer water from Northern California. The SDCWA will consider how many of these resources will be utilized to reduce the impact upon the Authority’s service area. Also under consideration will be storing the purchased transfer water for future use.
The District has noticed a public hearing for its May 4, 2009, Board meeting to consider adoption of a declaration of water shortage emergency condition (Level 2) pursuant to the District’s Water Supply Shortage Response Program. Similar action will be taken by member agencies of the SDCWA with implementation of the mandatory water use provisions established for Level 2 of their Water Supply Shortage Response ordinances. However, many agencies are evaluating their water rate structures such as penalty rate structures for exceeding allocation levels and inclining block water rates or voluntary water use reduction level with no penalty rate structure implemented. Upon the SDCWA’s determination of its member agencies’ supply reduction levels, the District’s Board will consider its water rate structure to achieve the required reduction level.
Residential and commercial customers will receive information to assist them in achieving the required water consumption reduction level as determined. It was noted that IAWP customers have received their allocations for a 30% cutback during 2009, which they achieved in calendar year 2008. SAWR customers had been subject to a 30% cutback in 2008 under the IAWP, and will now be required to reduce usage by 13%. Information to be provided residential and commercial customers will include dates of meter reads, monthly allocation, how to read a water meter, and, in the near future, on-line data for individual accounts. Technology may also be available in the future for customers to obtain real time reads of their water meters. Consumer Services Supervisor Tilley stated that customers will be informed that they can account for their monthly water consumption and not exceed their allocation with data on their monthly bill; namely, their meter read date, meter read and monthly allocation. Adding the monthly allocation to the previous meter read gives the customer the meter read which they should not exceed upon the noted next meter read date in order to achieve the water usage reduction level. Also, workshops will be held to review the allocation program with customers.
A declaration of Level 2 of the District’s Water Supply Shortage Response Program will implement restrictions on issuing new potable water accounts as per Section 230.5 of the Administrative Code. Different scenarios upon implementation of these restrictions were reviewed as outlined below:
Properties With Prior Water Service:
Existing Full Price Meter Accounts Reallocating Capacity and Water Allocations to Multiple Accounts Serving the Original Property - Allocations may be apportioned by the proponent on a one-time basis equitably among multiple meter accounts serving the original property, as approved by the District. The allocation apportionment must assign at least 10 HCF per month to each of the multiple accounts after subdivision of the original subject property.
Existing IAWP/SAWR Meter Accounts Reallocating Capacity and Water Allocations to Multiple Accounts Serving the Original Property - Allocations may be apportioned by the proponent to smaller multiple accounts on a one-time basis equitably among the multiple accounts as approved by the District. The allocation apportionment must assign a gross allocation of no less than 37 HCF per month to each of the multiple accounts (26 HCF net of the 30% reduction) after subdivision of the original subject property.
IAWP/SAWR Meter Accounts Converting to Full Price and Reallocating Capacity and Water Allocations to Multiple Accounts Serving the Original Property - Accounts converting from the IAWP/SAWR to become Full Price will have the FY ‘06-07 allocation base changed to an allocation based upon the average usage during FYs 2004-05, 2005-06, and 2006-07. The allocation apportionment must assign at least 10 HCF per month to each of the multiple accounts after subdivision of the original subject property.
Properties Without Prior Water Service:
New Meter Account Applications Processed Prior to the Level 2 Declaration and Installed Within the Required Six–Month Period - Accounts processed as Full Price prior to the Level 2 Declaration and installed within the 6-month required period (having no usage history in the base measurement period of FYs 2004-05, 2005-06 and 2006-07) will be provided an allocation of at least 10 HCF per month.
New Meter Account Applications Processed Prior to a Level 2 Declaration But Not Installed Within the Required Six Month Period - Accounts processed prior to the Level 2 Declaration, but not installed at the six-month expiration date, an opportunity for re-commitment shall be made available at proponent’s option. Said re-commitment for service shall be subject to all fees and conditions of service in effect at the time of re-commitment, including, but not limited to increased meter capacity fees from VCWD, SDCWA, increased installation fees, and any and all Net Water Demand/Conservation Offset Program requirements and fees. Accounts will be provided an allocation of at least 10 HCF per month.
New Meter Account Applications Submitted After the Level 2 Declaration - Account applications submitted after the Level 2 Declaration for properties without prior usage will be held in abeyance until a Net Water Demand/Conservation Offset Program is established. At the point of establishment, appropriate capacity fees and Net Demand/Conservation Offset Fees will be collected. Actual service will be extended when the District certifies that the actual Net Demand/Conservation Offset is implemented and new locally developed supply or conserved imported supply is available to serve the new meter.
The District will be developing its Net Water Demand/Conservation Offset policy that will identify demand offset programs. Also, the San Diego County Water Authority is establishing a regional water demand offset program. Projects such as the District’s Lawrence Welk Skimming Plant and Lake Turner wells may be identified as eligible programs for offset funding.
Mr. Jerry Gaughan of Valley Center View Properties stated he is in the process of developing the design of the Northern Town Village that will have a wastewater treatment plant for the Northern Village. He expressed concern regarding the restriction on obtaining new water meters upon a Water Supply Reduction Response Program Level 2 or higher as the development process is lengthy and the process can take from 3 to 7 years before a development is ready to secure the water meters. Mr. Gaughan mentioned that his proposed Northern Town Village will recycle approximately 250,000 gallons/day that will reduce the net water demand of the development. He noted that he has an inactive 1-1/2” meter that he will utilize and envisions using the groundwater on his property to offset the amount of imported water needed for his development.
A letter was received from the law offices of Wesley W. Peltzer pertaining to water meters for the Steinbeck subdivision. Mr. Steinbeck secured final subdivision maps from the County for the development of 31 residential lots. He explained that at this time he is approximately 90% complete with the infrastructure that includes water and wastewater lines and streets. A couple of off-site lines need to be completed before he can obtain final acceptance of the facilities by the District. Mr. Steinbeck stated that he is financially unable at this time to purchase the water meters and he will be unsuccessful in selling lots if he cannot obtain water meters. It was noted, however, that the owners of the lots that have been sold can obtain a water meter at this time.
At the May 4, 2009, Board meeting, a Water Supply Shortage Response Level 2 Declaration and implementation policy guidelines will be considered by the Board.
GENERAL MANAGER’S AGENDA
7. Review of Miscellaneous Informational Items:
• Solar Electric Solutions will begin construction in July of the solar panel carport in the District’s parking lot.
• The San Diego Regional Water Quality Control Board postponed action until its meeting on May 13th on the permit for the Marine Life Mitigation Plan pursuant to the proposed Carlsbad-Poseidon Desalination Plant. Final approval of this Plan is expected to be granted. Construction of the desalination project may begin in late 2009 and be on-line in early 2012.
• An open house for residents to view the solar project at the District’s Lake Turner site will be held on a Saturday.
GENERAL COUNSEL’S AGENDA
8. Litigation Filed by Delta Farmers to Block the Conveyance Facility Around the Delta:
General Counsel Cowett stated that Delta farmers have sued to enjoin construction of a proposed conveyance facility that would divert Sacramento river water around the Delta.
CLOSED SESSION
9. A Closed Session was called by President Broomell at 4:09 p.m. pursuant to:
• Government Code §54956.9(b)&(c) – Conference with Legal Counsel,
Anticipated Litigation
Number of potential cases: 4
RECONVENE
10. The Regular Board meeting was reconvened at 4:29 p.m. No action was reported.
ADJOURNMENT
11. Upon motion by Aleshire, seconded by Stone and unanimously carried, the meeting was adjourned at 4:30 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary