VALLEY CENTER WATER DISTRICT
Regular Board Meeting
Tuesday, September 8, 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.
Board members present were: Directors Broomell, Polito, Aleshire, Stone and Haskell. Staff members present were: General Manager Arant, District Engineer Grabbe, Director of Operations Hoyle, Director of Finance Jeffrey, Board Secretary Stetson, and Manager of IT Pilve. Spectators present were: Messrs. Hall and Stern of Solar Electric Solutions.
1. Upon motion by Aleshire, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held August 17, 2009
• Audit demand check numbers 123323 through 123496 and wire disbursements for August 2009
• Treasurer’s Report and Financial Statements for the period ended July 31, 2009
2. Contract Extension of the Power Purchase Agreement with Solar Electric Solutions for Solar Photovoltaic Carport Cover:
On October 3, 2008, a Power Purchase Agreement (PPA) was executed with Solar Electric Solutions (SES) for SES to construct, own and operate a solar photovoltaic carport cover at the District’s corporate facility. Under the terms of the PPA, the District can terminate the contract on October 3, 2009, if the Commercial Operations Date has not occurred. The project has been delayed due to SES’s difficulties in finalizing project financing. However, SES has completed the design and engineering for the solar system and has stamped electrical and structural designs. SES has requested that the District grant an extension to April 4, 2010 to reach Commercial Operation for the proposed solar photovoltaic carport cover project at the District’s corporate facility.
Mr. Freeman Hall, President of Solar Electric Solutions, stated that project funding had been pursued with Deutschebank, but funding became unavailable with the financial issues that arose in 2008. At present, SES is working to secure financing with Solar Power Partners, who are the owners and operators of the District’s Lake Turner Solar Project. Mr. Hall reported that SES is close to securing the financing for the solar project with Solar Power Partners with a few issues to be resolved. General Manager Arant recommended granting the extension to the Power Purchase Agreement with SES for the date of Commercial Operation to April 4, 2010 contingent upon financial arrangements being secured and finalized by SES no later than November 30, 2009.
Staff reviewed that the proposed Power Purchase Agreement with SES to construct, own and operate the solar photovoltaic carport cover over the employees’ parking lot is a 25-year agreement with the District purchasing the output from the project’s solar panel system at 13¢/KwH with a 3.5% annual escalator. In addition, the District would receive the benefits of the Renewable Energy Credits.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the extension of the Commercial Operation date for the Power Purchase Agreement with Solar Electric Solutions for the Corporate Facility Photovoltaic Carport Cover was approved to April 4, 2010, subject to completion of financial arrangements by November 30, 2009.
3. Approval of Draft Seawater Desalination Program Agreement:
A draft “Seawater Desalination Program Agreement” between the Metropolitan Water District, San Diego County Water Authority, and the nine retail water agencies that have entered into agreements with Poseidon Resources to receive desalinated water from the Carlsbad Seawater Desalination Project was presented for approval. The nine retail water agencies are: Carlsbad MWD, City of Oceanside, Olivenhain MWD, Rainbow MWD, Rincon del Diablo MWD, Santa Fe ID, Sweetwater Authority, Vallecitos WD and the Valley Center MWD. The draft agreement, upon adoption by the Metropolitan Water District Board, will provide access to Metropolitan Water District’s funding over the 25-year life of the agreement providing financial incentives for the seawater desalination project. The incentive from Metropolitan Water District’s Seawater Desalination Program is a critical component to the financial feasibility of the Carlsbad-Poseidon Seawater Desalination Program, and the Metropolitan Board will consider the agreement during its October 2009 Board meeting. The Seawater Desalination Program’s contribution for the project is equal to the sum of the Project Unit Cost and Deferred Cost minus Metropolitan Water District’s prevailing full service treated water rate applicable to all Metropolitan’s member public agencies, not to exceed $250.00 per acre foot.
General Manager Arant reported that currently there is no active litigation challenging the Carlsbad-Poseidon Desal. project. Final contracts are being finalized with the nine retail desal. partners. Construction of the desal. project may begin in January 2010 with water delivery by late 2011 or early 2012.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the draft Seawater Desalination Program Agreement among the Metropolitan Water District of Southern California, San Diego County Water Authority and the nine desal. partners for the Carlsbad-Poseidon Resources Desalination Project was approved as to form with approval granted for the General Manager to execute the final agreement as approved by General Counsel.
4. Board Input on the Casting of the Ballot for the ACWA Region 10 Officers and Board Members:
The Association of California Water Agencies (ACWA) is conducting its mailed ballot election for 2010 and 2011 Region 10 Officers and Board members. For this term, the Chair’s position will be held by a representative from Orange County and the Vice Chair will be from San Diego County. Further, the ACWA Region 10 Board Members for the 2010 and 2011 term will consist of two from Orange County and three from San Diego County. The deadline to cast the ballot for the Region 10 officers and Board members is September 30, 2009.
The Region 10 nominating committee’s recommended slate is noted below:
Chair: Peer Swan, Irvine Ranch Water District
Vice Chair: Keith Lewinger, Fallbrook Public Utility District
Board Members: Jan Debay, Orange County Water District
Saundra Jacobs, Santa Margarita Water District
Darrell Gentry, Vallecitos Water District
Richard Vasquez, Vista Irrigation District
Following the election, one Region 10 Board member position will be vacant as only two nominees from San Diego County filed for the three positions. As such, this Board position will be filled by appointment once the Region 10 Board is constituted in 2010.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the Board approved casting the District’s ballot for ACWA Region 10 Officers and Board Members for 2010 and 2011 per the nominating committee’s recommendation.
5. Nomination of ACWA Committee Appointments for the 2010 and 2011 Term:
The elected ACWA President and Vice President and Region Officers for 2010-2011 will reconstitute ACWA’s Standing and Regular committees. As such, ACWA is requesting committee nominations from ACWA members. Currently, General Manager Arant serves as Chair of the Communications Committee, and he requested the Board’s nomination for his reappointment to this committee as Chair.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the Board nominated General Manager Arant for reappointment to the Association of California Water Agencies’ Communications Committee, Committee Chair, for the 2010 and 2011 term.
GENERAL MANAGER’S AGENDA
6. Review of Miscellaneous Informational Items:
• The San Diego County Water Authority is aggressively pursuing obtaining available funding for projects in San Diego County. Projects that will benefit from funds include the Carryover Storage Project and the East County Interconnection Project. San Diego Regions’ Proposition 50 integrated regional water management grant funds were distributed to the Mission Resource Conservation District, San Diego Coastkeeper, San Diego River Park Foundation, San Dieguito Watershed Council and the Zoological Society of San Diego.
• The federal National Marine Fisheries Service has prepared a document titled “Southern California Steelhead Recovery Plan” which proposes the restoration of steelhead in rivers and streams along coastal Southern California including the San Luis Rey River. Such a proposal would require restoration of the San Luis Rey River flow by reducing or eliminating all surface water diversions and groundwater extractions and modifying structures that threaten or impede the seasonal migration of the steelhead. Due to the impact this proposal would have upon their water operations, the Yuima MWD, Vista Irrigation District, and the cities of Oceanside and Escondido are exploring retaining Counsel with expertise in the Endangered Species Act to challenge the scientific basis of the proposal to restore Steelhead in the rivers and streams along the Southern California coast and, in particular, the San Luis Rey River. If regulations are adopted to restore the San Luis Rey River flow, the District’s operations at the Moosa Treatment Plant could be affected as approximately 350,000 gpd of effluent is discharged to the perc ponds that ultimately flows to the San Luis Rey River. Also, impoundment of water in Lake Turner could be affected. The District’s participation in the retention of Counsel along with the other affected agencies to challenge the proposed restoration of the steelhead in the San Luis Rey River will be evaluated further and presented to the board for action at a subsequent meeting.
7. Employee’s Appreciation:
Tony LoPresti, Meter Services Supervisor, thanked the Board for their action in supporting him and his family at a time when he lost his son to cancer by recognizing the importance of employees’ presence at the services and facilitating such by closing the District early on Friday. Tony noted that the magnitude of people that attended his son’s services provided the support that gave substantial comfort to him and his family. He also thanked the Board and management for their assistance during his son’s lengthy illness and commended them for their actions.
8. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 2:56 p.m.