VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board MeetingMonday, October 19, 2009Time: 2:00 P.M.Place: Board Room29300 Valley Center RoadValley 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, Aleshire and Stone. Director Haskell was absent. Staff members present were: General Manager Arant, General Counsel deSousa, District Engineer Grabbe, Director of Finance Jeffrey, Director of Operations Hoyle, Board Secretary Stetson and Manager of IT Pilve. Spectators present were: Messrs Bunts, Lewis and Hilbig.
1. Upon motion by Aleshire, seconded by Polito and unanimously carried, the following consent calendar items were approved:
2. Public Hearing to Consider Approval of Resolution Adopting Revised Provisions of the Water Supply Shortage Response Program:
The public hearing to receive input and consider adopting revised provisions of the District’s Water Supply Shortage Response Program was opened at 2:03 p.m. In response to water supply shortage conditions, Level 2 of the District’s Water Supply Shortage Response Program was declared to be effective July 1, 2009, and mandatory water conservation practices and measures to achieve the requested 8% (voluntary) water use reduction have been enforced and monitored. As of September 30th, Municipal & Industrial customers have reduced water usage by 34%.
Staff recommended revising the Water Supply Shortage Response Program as codified in the District’s Administrative Code (Article 230) to clarify and standardize the water use measures and provisions as follows:
Staff recommended that the 8% voluntary water use reduction for Municipal & Industrial customers be retained. The impact from lower water sales will continue to be evaluated along with implementation of financial modifications that will be considered by the Board in conjunction with the preliminary analysis of the FY 2010-11 budget. A workgroup of San Diego County Water Authority member agencies is developing a proposal to extend the Authority’s Special Agricultural Water Rate (SAWR) through to December 31, 2010.
No written comments on the proposed revisions to the Water Supply Shortage Response Program were received and there were no comments from the public. The public hearing was closed at 2:16 p.m.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2009-11
AN ORDINANCE OF THE BOARD OF DIRECTORSOF THE VALLEY CENTER MUNICIPAL WATER DISTRICTAPPROVING REVISIONS TO THE WATER SUPPLYSHORTAGE RESPONSE PROGRAM, ARTICLE 230OF THE DISTRICT’S ADMINISTRATIVE CODE
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Stone
ABSENT: Director Haskell
3. Resolution Authorizing Submittal of a Financial Assistance Application for the Woods Valley Ranch Water Reclamation Facility Expansion Project:
District Engineer Grabbe reviewed that concept approval for the Woods Valley Ranch Water Reclamation Facility expansion project had been approved in August 2009. The project, as proposed, will expand the existing reclamation facility to serve an additional 350 EDUs with financial assistance from the Clean Water State Revolving Fund (SRF) Program. The proponents of the expansion project, Village Redevelopment, LLC, retained RMC Engineering to prepare the application for SRF funds that will be submitted by the District. A resolution authorizing and directing staff to submit said application is required as part of the application process.
At this time, the application that will be submitted to the State Water Resources Control Board for consideration of SRF funds is 75% complete. Staff has been reviewing the application for its accuracy and conformance with the project’s concept approval. The total project cost is estimated at $12.6 million of which $2.6 million will be provided by the property owner participants and a SRF $10 million loan proposed to be repaid through tax assessments upon property in an assessment district formed among the participating property owners of the South Village service area.
Application for the SRF loan will be submitted to the State Water Resources Control Board (SWRCB) by the end of October and a preliminary response is expected by the end of December 2009 or January 2010. If a positive response is received from the SWRCB, then tasks including formation of the assessment district and collection of the participants’ funds will be necessary for the loan to be finalized. Also, compliance with the California Urban Water Conservation Council’s Best Management Practices MOU may need to be addressed including the District’s wastewater rate structure.
Staff recommended adoption of Resolution No. 2009-41 authorizing staff to submit an application for financial assistance to the State Water Resources Control Board, Clean Water State Revolving Fund Program, for the expansion project of the Woods Valley Ranch Water Reclamation Facility. The project proponents indicated that letters of support for the expansion project have been obtained from the County Department of Environmental Health and state and county elected officials that can be submitted along with the application.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-41
A RESOLUTION OF THE BOARD OF DIRECTORS OFTHE VALLEY CENTER MUNICIPAL WATER DISTRICTAUTHORIZING THE SUBMITTAL OF A CLEAN WATERSTATE REVOLVING FUND LOAN FINANCIAL ASSISTANCEAPPLICATION FOR THE EXPANSION OF THE WOODSVALLEY RANCH WATER RECLAMATION FACILITY
4. Resolution Authorizing Securitization of the District’s Proposition 1A Property Tax Receivable from the State of California:
Resolution No. 2009-40 was presented for the Board’s consideration that will authorize “A Purchase and Sale Agreement to Sell the District’s Proposition 1A Property Tax Receivable from the State to a Joint Powers Authority.”
Director of Finance Jeffrey explained that as a result of the Legislature’s declaration of a fiscal necessity, an emergency suspension of Proposition 1A, that ensures local property tax revenues remain with local government, was passed. The State will borrow 8% of the property tax revenue apportioned to cities, counties and special districts with the state repaying the obligations plus 2% interest by June 30, 2013. Under these provisions, $173,978.18 of the District’s property tax revenue will be borrowed by the State.
A Proposition 1A Securitization Program as authorized by the Legislature was instituted by California Statewide Communities Development Authority (California Communities), a joint powers authority, that enables local agencies to sell their Proposition 1A receivables to California Communities. Under the Securitization Program, California Communities will purchase the Proposition 1A receivables, issue bonds and provide each local agency with the cash proceeds in two equal installments, on January 15 and May 3, 2010. The purchase price paid to the local agencies will equal 100% of the amount of the property tax reduction and all transaction costs will be paid by the State of California. Adoption of Resolution No. 2009-40 to authorize the purchase and sale agreement of the District’s Proposition 1A receivable from the state was recommended as it will mitigate the impact of an 8% property tax reduction, the District has no obligation with respect to the payment of the bonds, costs of financing will be borne by the State, and will communicate to the State that the tax revenues are important to the financial integrity of the District.
Upon motion by Stone, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-40
BOARD OF DIRECTORS OF THEVALLEY CENTER MUNICIPAL WATER DISTRICTA RESOLUTION APPROVING THE FORM OF ANDAUTHORIZING THE EXECUTION AND DELIVERYOF A PURCHASE AND SALE AGREEMENT ANDRELATED DOCUMENTS WITH RESPECT TO THESALE OF THE SELLER’S PROPOSITION 1A RECEIVABLEFROM THE STATE; AND DIRECTING AND AUTHORIZINGCERTAIN OTHER ACTIONS IN CONNECTION THEREWITH
5. Ordinance Amending Classification and Compensation Plan and Organizational Chart:
Modification of Section 8.9(c) of the District’s Administrative Code, Classification and Compensation Plan, was recommended to adjust the Salary Range of the Manager of Information Technology from Range 29 to Range 31 to have parity with the Manager of Accounting and Manager of Human Resources positions. The Manager of Information Technology is responsible for designing and maintaining a complex data network and databases that are critical to the District’s operations. The current Manager of IT has extensive experience and it is felt that his high level of performance warrants the salary range adjustment.
A proposed amendment to Section 8.9(c) re-designates the Deputy Director of the Field Department classification from the Pumps & Motors Supervisor to the Meter Services Supervisor as the Pumps & Motors Supervisor recently retired.
ORDINANCE NO. 2009-12
ORDINANCE OF THE BOARD OF DIRECTORS OFVALLEY CENTER MUNICIPAL WATER DISTRICT AMENDINGTHE ADMINISTRATIVE CODE ARTICLE 8, SECTION 8.9(C),COMPENSATION POLICY-CLASSIFICATION AND COMPEN-SATION PLAN, TO ADJUST THE RANGE OF THE MANAGEROF INFORMATION TECHNOLOGY POSITION AND DESIGNATETHE DEPUTY DIRECTOR, FIELD DEPARTMENT POSITION
6. Budget Adjustment for Recoating the Interior and Exterior of West Nos. 1 and 2 Reservoirs:
Director of Operations Hoyle reported that the Fiscal Year 2009-10 budget contains $219,982 for the recoating of the interior and exterior of West No. 1 and 2 and the Oat Hill Reservoirs. Bids for the recoating of West No. 2 were received with the lowest bid awarded at $216,729, which is higher than had been expected due to increased costs associated with the recommended zinc primer and the coal tar removal and disposal process. Staff feels that a favorable bid will be received at this time for the recoating of West Reservoir No. 1 from the contractor as the reservoirs are on the same site and equipment removal costs would be avoided. An adjustment of the FY 2009-10 budget to transfer $115,000 from funds available in the capital Portable Power & Transfer Switching account (01-5605.78) to Reservoir Recoating capital account (01-5634.78) in order to provide sufficient funding in FY 2009-10 for the recoating of the interior and exterior of the West No. 1 and 2 reservoirs was recommended. The recoating of Oat Hill Reservoir will be deferred to FY 2010-11.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the transfer of $115,000 in the Fiscal Year 2009-10 budget from 01-5605.78, Portable Power & Transfer Switching capital account, to 01-5634.78, Reservoir Recoating capital account, was approved.
GENERAL MANAGER’S AGENDA
7. Review of Miscellaneous Information Items:
DISTRICT GENERAL COUNSEL’S AGENDA
8. Report of Hearing on Pumping Plan, State Water Contractors:
General Counsel deSousa reported that a hearing had been held on October 2nd on the Delta Smelt litigation regarding the pumping plan for the State Water Project in which Best, Best & Krieger represents State Water Contractors. A written decision by the judge is pending, but there are indications that the Judge will rule that the Fish & Wildlife Services should have prepared an Environmental Impact Statement under the Environmental Protection Act and consider the impact of human life in its pump operating plan.
The Pacific Legal Foundation had argued that because the Delta Smelt is purely an intrastate species and is not involved in commerce, that placing the species under the Environmental Species Act is in violation of the Constitution, due to its limitation of federal domestic authority to things involved in interstate commerce. Constitutional law scholars feel that such a challenge of federal jurisdiction with respect to intrastate commerce may be heard by the U.S. Supreme Court.
General Counsel deSousa reported that Governor Schwarzenegger vetoed the bill that would have limited the amount that a public agency can withhold from progress payments to contractors. The law currently allows the retention of no less than 5% with common practice being a 10% retention from payments made to contractors.
BOARD OF DIRECTOR’S AGENDA
9. ACWA Regions 8, 9 and 10 Workshop:
Director Aleshire stated he had attended the Association of California Water Agencies Regions 8, 9 and 10 workshop in Lake Elsinore titled: California’s Water Solution: Are We There Yet? A review of water rates showed that the rate structures have evolved from being flat, to a declining rate, uniform for different rate classes, seasonal rates and to inclining tier rates.
Assemblyman Jeffries spoke on the challenges encountered in working with legislators and accomplishing goals. He feels that the 6-year term for Assembly Members is too short as it takes time to become familiar with the legislative process and to become an effective representative. Assemblyman Jeffries commented that he responds to contacts from constituents and agency officials rather than lobbyists.
10. Upon motion by Polito, seconded by Stone and unanimously carried, the meeting was adjourned at 3:34 p.m.
___________________________ ___________________________President Secretary