June 1, 2009
VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, June 1, 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 President Broomell at 2:00 P.M.
ROLL CALL
Board members present were: Directors Broomell, Polito, Aleshire, Stone and Haskell. Staff members present were: General Manager Arant, General Counsel de Sousa, Director of Finance Jeffrey, Director of Operations Hoyle, District Engineer Grabbe, Board Secretary Stetson, Manager of IT Pilve, Manager of Accounting Pugh, Consumer Services Supervisor Tilley, and Accounting Specialists Masley and Serrato. Spectators present were: Wendy Heredia, Principal of the Valley Center Elementary School, Shannon Hargrave, Principal of the Valley Center Lilac School, the Valley Center Fourth Grade poster contest winners and family members, 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:
▪ Concept approval of the Beck Subdivision Project (TM 5060) consisting of approximately 2,200 linear feet of 8-inch water main, sixteen water/fire services and required appurtenances
▪ Resolution No. 2009-24 establishing the appropriation limit for proceeds from taxes per Government Code and Article XIIIB of the State Constitution
▪ Audit demand check numbers 122451 through 122505
▪ 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 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 180 posters were received from the 4th grade students of both the Valley Center Elementary and Lilac Elementary Schools that illustrated the importance of water, how it affects their lives, ways to conserve or recycle water, 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: Maria Luz Celeste-Juache
Valley Center Elementary School
2nd Place: Brooke Clark
Lilac Elementary School
3rd Place: Brittany Dunckel
Valley Center Elementary School
Honorable Mentions: Reese Henderson
Neve Alvarez
Joseph Nunez
Shelby Smith
Guadalupe Esteva
Violet Meyers
Miranda Knight
Jacob Banner
Award certificates, ribbons and conservation material were presented to the winners in the poster contest and the 1st, 2nd and 3rd place winners received gift cards to Barnes & Noble. 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’ 2010 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 2009-10:
President Broomell opened the public hearing to receive input on the proposed District-wide water availability charge for Fiscal Year 2009-10 at 2:08 p.m. Director of Finance Jeffrey explained that the public hearing on the proposed $10.00 per acre availability charge for Fiscal Year 2009-10 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 ($100,929), with the remainder ($490,071) 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 $17.84 per acre foot increase in the selling price of water, or an average increase of $5.63 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 2009-10. There were no comments from the audience.
The public hearing on the proposed Fiscal Year 2009-10 District-wide water availability charge was closed at 2:10 p.m.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2009-07
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ESTABLISHING WATER AVAILABILITY CHARGES FOR
2009-2010 ON ALL PROPERTY WITHIN THE DISTRICT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
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 for Fiscal Year 2009-10 was opened at 2:11 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 254 developed parcels within the Woods Valley sewer service area using a total of 263 EDUs.
The 2009-10 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 combined Sewer Standby Fee and Sewer Service Charge for the Woods Valley Ranch Reclamation Facility for 2009-10 provide the necessary revenue to meet the requirements of the reclamation facility. The Sewer Standby Fee is presented as a separate item and does not require a public hearing.
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 and there were no public comments. The public hearing was closed at 2:17 p.m. Director Aleshire suggested that for clarity the assessment amount as a monthly fee be included in the adopting resolution approving the levy of the annual sewer service charge on the San Diego County secured property tax roll.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-27
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING THE WOODS VALLEY SEWER SERVICE CHARGE
ASSESSMENT FOR 2009-2010 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, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
ACTION AGENDA
5. Resolution to Set the Woods Valley Annual Sewer Standby Fee for Fiscal Year 2009-10:
Adoption of Resolution No. 2009-28 to set the Woods Valley Sewer Service Area Sewer Standby Fee for Fiscal Year 2009-10 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 17 undeveloped parcels, one being the golf course club house, with a total of 17 EDUs.
The budget for the Woods Valley Ranch Reclamation Facility for Fiscal Year 2009-10 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 Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-28
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING THE WOODS VALLEY SEWER STANDBY FEE
ASSESSMENT FOR 2009-2010 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, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
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. 2009-29 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 2009-10 of the property using the water or service.
An assessment on the 200 parcels in Assessment District 96-1 of $745.00 per parcel for 2009-10 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. Nine parcels with a total delinquency of $184,925.86 are eligible to be placed on the tax roll for FY 2009-10.
Upon motion by Stone, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-29
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING FIXED CHARGE SPECIAL ASSESSMENTS FOR 2009-2010
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, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
7. Resolution Revising Change Order No. 6 to the Valley Center Road Pipeline Replacement Project:
Resolution No. 2009-30 to approve Change Order No. 8 to the Valley Center Road Pipeline Replacement Project and provide additional funding by amending the Fiscal Year 2008-09 budget with the transfer of $75,000 from the Reidy Canyon Area Reservoir project was presented for the Board’s adoption.
Change Order No. 8, which totals $50,189.03, consists of five change order requests, as follows:
Cut/Cap 12” pipeline - $6,694.76
Remove concrete debris piers - $5,337.16
Abandon existing VCMWD vaults - $15,818.33
Install PVC sleeve - $2,718.78
Raise existing valve can lids - $19,620.00
Change Order No. 8 increases the total contract amount for the Valley Center Road Pipeline Replacement project to $5,242,346. The change orders, including Change Order No. 8, total 8.2% of the original contract amount.
Funds remaining in the Project account are $1,204,000 and will be used for the balance of the construction contract, county soils and survey work, staff time, and preparation of record drawings. An additional $75,000 is needed to complete this work. Pending are the resolution of costs associated with Change Order No. 6, a project close-out change order, and approximately $44,000 in credits from the County and Archer-Western. Approval to amend the FY 2008-09 budget was requested to provide $75,000 of additional funds for the pipeline replacement project which is available from the Reidy Canyon Area Reservoir project account.
Upon motion by Aleshire,, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-30
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE VALLEY CENTER MUNICIPAL WATER
DISTRICT FOR THE APPROVAL OF CHANGE ORDER
NO. 8 TO THE CONTRACT WITH THE COUNTY OF
SAN DIEGO
FOR CONSTRUCTION OF THE VALLEY CENTER
ROAD PIPELINE REPLACEMENT PROJECT AND
AMENDING THE FISCAL YEAR 2008-09 BUDGET
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
8. Review of Proposed Fiscal Year 2009-2010 Operations and Maintenance and Capital Budget:
The District’s proposed 2009-10 Operations, Maintenance and Capital Budget was presented for the Board’s review. At the May 4th Board meeting, an overview of the proposed 2009-10 budget had been provided. Manager of Accounting Pugh reviewed that the direction from the Board at the March 16th meeting in which the revenue and expense projections and revenue options for Fiscal year 2009-10 had been reviewed was that the standby water availability charge be allocated for capital, the OPEB obligation be funded and there be no rate increase for the District’s local share of the water commodity charge. The proposed FY 2009-10 budget was reviewed, as summarized below:
• Budgeted water sales are 33,130 ac. ft. The budgeted water sales represent a 22% reduction of average sales for the past five years.
• Total net wholesale rate increases are 16.5% for full-price customers, 25.3% for Interim Agricultural Water Program (IAWP) customers and 17.4% for Special Agricultural Water Rate customers. The estimated water rates for 2009-10 have been estimated as the San Diego County Water Authority is expected to adopt its wholesale rates in June. As directed by the Board, the District’s local cost component of the water rate remains unchanged at $102.41 per acre foot.
• Interest income is budgeted at $270,000 (1.5%), which is equivalent to $8.00/ac. ft. on the water rates.
• Property taxes are budgeted at $2,209,000, which is equivalent to $67/ac. ft. on the water rates. There is the possibility that the State will borrow (per Proposition 1A) or shift the District’s property tax revenue due to its budget deficit. If a permanent shift of the property tax revenue becomes effective, options such as the capital improvement program and revenue structure will need to be discussed.
• Pumping zone charges will meet the District’s estimated energy pumping costs of $106/ac. ft. of water purchased for 2009-10.
• Authorized staffing level is 75 employees, a reduction of 5 employees from the 2008-09 budget. Estimated personnel costs for the general fund, including the cost of living adjustment of 1.75%, are $8,030,000.
• Capital projects in the budget total $3,000,250 for the following projects:
Pipelines & PRVs - $30,000
Pump Stations - $451,500
Reservoirs - $1,948,750
Data Management Systems - $400,000
Facilities - $28,000
Field Equipment - $142,000
• There are currently 2,455 active connections to the District’s Lower Moosa Canyon Water Reclamation Plant. The Moosa wastewater service charge is proposed to be $44.50/EDU/month, which is a $4.00/EDU increase. The low pressure wastewater collection system maintenance fee is proposed to be $36.75/EDU/month, a $3.25/EDU increase. Capital projects for the Lower Moosa Canyon Water Reclamation Facility total $150,000, consisting of $75,000 for the Rimrock STEP system modification and ½ the cost ($75,000) for a wastewater cleaning truck.
• The 70,000 gpd Woods Valley Ranch Water Reclamation Facility was conditionally accepted by the District with final acceptance expected in July 2009. The operations, maintenance and capital expenditures and replacement reserve account are funded through the fixed charge special assessment on the properties within the Woods Valley Ranch development which is collected on the property tax roll. The charge is $98.60/EDU/month, which is unchanged from the previous year.
The District’s annual budget for Fiscal Year 2009-10 will be presented at the June 15th regular Board meeting for adoption by resolution along with ordinances to implement changes in the District’s Administrative Code book per the budget and MOU with employees. Director Aleshire requested that in the future the budget include a summary of the water and wastewater accounts listing income and expenditures for each of these accounts.
GENERAL MANAGER’S AGENDA
9. Review of Miscellaneous Information Items:
▪ At the San Diego County Water Authority Board meeting of May 28th, an agreement with Placer County Water Agency for the purchase of up to 20,000 acre feet of water was approved. The water will be transferred into storage in the Semi-Tropic Storage Facilities.
▪ The number of generators to be supplied by SDG&E to the District for its pumping facilities pursuant to SDG&E’s proposed Emergency Power Shut-Off Plan is still being discussed. The PUC has approved SDG&E’s relocation and underground conversion projects that will improve electrical service reliability to our region and, once construction is completed, six of the District’s key pumping stations will not be subject to the proposed Emergency Power Shut-off Plan. General Manager Arant and Sophie Akins of Best, Best & Krieger will testify before the Administrative Law Judge of the PUC in Sacramento on July 2nd regarding SDG&E’s proposed Emergency Power Shut-off Plan.
DISTRICT GENERAL COUNSEL’S AGENDA
10. Proposed Bill to Expand the Definition of Navigable Water:
General Counsel de Sousa reported that Senate Bill 787 has been introduced that, as proposed, will expand the definition of navigable water. This legislation is in response to a 2006 U.S. Supreme Court case that limited the Federal Government’s jurisdiction under the Clean Water Act to only navigable waters or bodies of water that have a significant nexus to a navigable body of water. The definition of navigable water proposed in Senate Bill 787 would apply to “all water subject to the ebb and flow of the tide, the territorial seas and all interstate and intrastate waters and their tributaries, including all lakes, streams and intermittent streams, mud flats, sand flats, wet lands, prairie potholes, wet meadows, natural ponds and all the impoundments of the foregoing to the fullest extent of these waters or activities affecting these waters.”
Another bill has been introduced that places the burden on public entities to provide full, complete and accurate plans and specifications and estimates of costs for its capital projects. This bill could have an impact on public agencies that design projects in-house. Both the California Special Districts Association (CSDA) and the Association of California Water Agencies (ACWA) have opposed this bill.
BOARD OF DIRECTOR’S AGENDA
11. ACWA 2009 Spring Conference:
Director Stone reported that he had attended the ACWA Conference in Sacramento and had participated in the rally to the Capitol building in support of water rights. Director Stone stated that the conference’s programs were informative and pertinent to the current state-wide water crisis. The conclusion of the workshop “Creating a Sustainable Water System” was that the many complex issues involving the state’s water system will be litigated.
CLOSED SESSION
12. A Closed Session was called by President Broomell at 3:24 p.m. pursuant to:
• Government Code §54956.9(b)&(c), Conference with Legal Counsel, Anticipated Litigation
Number of potential cases: 4
RECONVENE
13. The Regular Board meeting was reconvened at 3:36 p.m. There was no reportable action.
ADJOURNMENT
14. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 3:39 p.m.
ATTEST: ATTEST:
___________________________ ___________________________
President Secretary