February 16, 2010
VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Tuesday, February 16, 2010
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, District Engineer Grabbe, Director of Finance Jeffrey, Director of Operations Hoyle, Board Secretary Stetson and Manager of IT Pilve. Spectators present were: Mr. and Mrs. Mark Skultety.
AUDIENCE COMMENTS/QUESTIONS
Mr. Mark Skultety requested consideration by the Board regarding nonpayment by Clean Power Systems for the construction work he performed as a subcontractor on the Lake Turner Solar Project. Clean Power Systems was contracted by World Water and Solar Technologies to construct the solar system. Clean Power Systems was subsequently sold to Potero Power. World Water and Solar Technologies was the contractor for Solar Power Partners, the owner of the solar facilities. This matter will be discussed in Closed Session.
CONSENT CALENDAR
1. Upon motion by Polito, seconded by Stone and unanimously carried, the following consent calendar items were approved:
▪ Minutes of the Board meeting held January 19, 2010
▪ Audit demands 124694 through 124944 and wire disbursements for January 2010
▪ Treasurer’s Report and Financial Statements for the period ended December 31, 2009
▪ Resolution No. 2010-06 concurring in the nomination of Charles Muse, Helix Water District, to the ACWA/JPIA Executive Committee
ACTION AGENDA
2. Review of Proposal for the Corporate Yard Solar Project:
District Engineer Grabbe explained that proposals for a Power Purchase Agreement (PPA) had been solicited from firms to construct, own and operate a solar photovoltaic facility for the District’s corporate yard. One proposal was received from Borrego Solar to construct a 220 kW system that would offset 75% to 80% of the current energy demands of the corporate yard. However, due to the complexity of the District’s energy system, the per kW hourly rate would be approximately double SDG&E’s rates. Correspondence was received from two other firms stating that it is not possible to prepare a competitive PPA due to the complexity of the system, its small size and the diminishing availability of rebates.
Staff recommended that a Power Purchase Agreement for a solar photovoltaic facility at the District’s corporate yard not be pursued at this time due to the unfavorable costs and to continue to evaluate alternative energy development for the District’s sites. The Board concurred with staff’s recommendation.
3. Grant of Time Extensions to the Concept Approvals Granted to Developer Projects:
District Engineer Grabbe reported that developer funded projects that had previously received approval from the District (concept approval and plan approval for construction) were reviewed for compliance with Administrative Code Article 190, Developer Project Requirements. The District’s Code sets forth time-lines for projects to proceed; i.e. concept and plan approvals expire after one year, and a project may be terminated after one year of construction inactivity. There are 12 developer projects that have had no activity within the last year and are considered to have an expired prior commitment. The project applicants were notified of this status and several requests for extension were received.
An extension of the grant of concept approval for the following developer funded projects was recommended:
Base Year
No. of Lots Allocation (HCF/Mo.)
Lizard Rocks waterline 1 0
Finlayson line extension 4 1,341
Hormuth line extension 14 3,787
Farmer line extension 5 121
Monica/Calamia Wilhite project 11 1,352
It was noted that granting an extension to the above listed projects will have no impact on the District’s ability to meet current water conservation goals. The Farmer line extension project includes the District’s participation to upsize a portion of the pipeline at an approximate cost of $14,500 that would be funded from the Upsizing and Unspecified Pipeline Replacement budget account.
Upon the grant of a time extension to these developer funded projects, the projects will need to be updated to meet current conditions of approval, design, policies, approval requirements, as well as updated District Facilities Agreements.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, extensions were granted to the previously granted concept approvals for the Lizard Rocks waterline, Finlayson, Hormuth, Farmer line extensions and Monica/Calamia Wilhite projects and staff was directed to secure updated District Facilities Agreements from each project proponent.
4. Approval of Budget Transfer for the Replacement of the Telephone System:
A budget adjustment to replace the District’s existing telephone system with a Voice over Internet Protocol (VoIP) technology phone system was requested. The existing phone system’s technology is considered obsolete and spare parts and support are only available through after-market sources as the manufacturer, Nortel, filed for bankruptcy in January 2009. Further, an incident such as a power failure could corrupt data within the existing phone system and result in extensive downtime. The advantages of upgrading the District’s telephone system to a VoIP technology was reviewed as summarized below:
▪ Flexibility – Ability to move phone extensions within the District’s network without reprogramming.
▪ Extendibility – Phone system can be extended to any facility, including Moosa and Woods Valley treatment plants, over the wireless SCADA network.
▪ Disaster Recovery – Phones can easily be relocated to any facility that is reachable via the District’s network and increased flexibility in routing incoming and outgoing calls.
▪ Simplified Administration – Configuration changes are completed with user-friendly graphical user interface that saves time and reduces errors.
▪ Caller ID and Call Management – Ability to view outside caller’s name when there is an incoming call and access address book data through the phone display.
▪ Database Integration – Customer’s records can be queried when the phone rings to increase efficiency in communicating with the customers.
▪ Direct Inward Dialing – Addition of direct-inward-dial service allows customers to directly dial a person’s phone and dedicated departmental extensions can be created to facilitate the routing of calls to personnel within a department such as customer service personnel.
▪ Unified Communications – Integration of the communication systems including voice mails delivered via e-mail, remote access to voice mail messages, and utilization of computer contact lists to dial the telephone.
The purchase of Cisco’s Unified Communications VoIP technology was recommended as the District’s IT personnel are Cisco CCNA certified to handle most technical and administrative functions of this phone system and the District already has support for the Cisco VoIP technology in the network infrastructure in the office and SCADA networks. Approval of Resolution No. 2010-04 to transfer $100,000 from the Fiscal Year 2009-10 Service Order Software budget account to a new VoIP Telephone System budget account was requested.
It was clarified that the Direct Inward Dialing feature allows for direct dialing of departments, eliminating the need for a dedicated receptionist and a voice message to direct the customer. If the direct contact phone number is unknown by the caller, a primary phone number can be dialed.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION 2010-04
RESOLUTION OF THE BOARD OF DIRECTORS OF VALLEY
CENTER MUNICIPAL WATER DISTRICT AMENDING THE FINAL
BUDGET FOR THE FISCAL YEAR 2009-2010 TO PROVIDE
FUNDS FOR REPLACEMENT OF THE TELEPHONE SYSTEM
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Resolution Nominating Director Aleshire to the Office of Vice President of the Association of California Water Agencies Joint Powers Insurance Authority (ACWA-JPIA):
The ACWA-JPIA will be conducting an Executive Committee election during the May ACWA Spring Conference to fill three Executive Committee members and the Office of President for the remainder of its term (one year) and the office of Vice President for a three-year term. Director Aleshire is the District’s appointed member on the ACWA/JPIA, which is a requirement to be nominated for a position and currently is an Executive Committee member. Further, the District participates in the ACWA/JPIA Liability, Property and Workers’ compensation programs, which is a requirement for an agency’s representative to be a candidate for the election. Resolution No. 2010-05, presented for the Board’s consideration, would place Director Merle J. Aleshire’s name in nomination for the Office of Vice President of the ACWA-JPIA.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2010-05
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
NOMINATING ITS ACWA/JPIA BOARD MEMBER,
MERLE J. ALESHIRE, Ph.D. TO THE OFFICE OF
VICE PRESIDENT OF THE ASSOCIATION OF
CALIFORNIA WATER AGENCIES JOINT POWERS
INSURANCE AUTHORITY (“ACWA/JPIA”)
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Stone and Haskell
NOES: None
ABSENT: None
ABSTAIN: Director Aleshire
6. Review of Strategic Plan Performance Measurement Results for Calendar Year 2009:
A summary of the District’s Strategic Plan Performance Measurement results for calendar year 2009 was reviewed as outlined below. It was noted that all performance goals, with the exception of unknown water loss, were met.
Customer Satisfaction – “Meets” or “Exceeds” customers’ expectations was at 100%.
- Unknown Water Loss – 5.8%. The goal of 5% water loss was not met in 2009, but water losses have decreased with the change-out of the malfunctioning AMRs.
Discretionary Reserves – 5.6 months of Operations and Maintenance budget.
District Share of Total Commodity Costs – Of the total commodity rate, the District’s share was 10.07% for full-price and 11.6% for IAWP.
Pump Efficiency – 101.5% of design efficiency.
Project Actual Cost v. Estimated Cost – Total project actual cost was +3.4% of the estimates.
Water Service Reliability – 99.952% service reliability.
Compliance with All State and Federal Regulations – 100% compliance. Lost time Accidents – 0.0007% lost time hours.
Return on Investments – Weighted average return on all investments was 1.97%.
GENERAL MANAGER’S AGENDA
7. Review of Miscellaneous Information Items:
▪ General Manager Arant reported that the San Diego County Water Authority Board adopted a position of support on the Safe, Clean and Reliable Water Supply Act of 2010. A resolution will be presented to the Board for its support of the bond.
▪ A meeting was held with the consultant who will be reviewing the District’s various projects and providing assistance in researching funding sources. This information will then be used to consider utilizing a lobbyist to pursue available resources for the identified projects. A presentation by the consultant will be provided the Board in March.
▪ The California Debt Limitation Allocation Committee awarded $530 million in tax exempt bonds for the construction of the Poseidon Resources Desalination Project in Carlsbad. These bonds are used to finance private projects judged to benefit the public. The California Coastal Commission rejected the second revocation petition which had requested the Commission revoke the plant’s coastal development permit on the grounds that Poseidon Resources did not submit certain facts about how the plant would offset greenhouse gas emissions.
▪ The San Diego County Water Authority’s Special Agricultural Water Rate is being evaluated. The supply segment of the discount, which represents approximately half of the discount, may be removed, but the storage segment would be retained.
DISTRICT GENERAL COUNSEL’S AGENDA
8. Legislation Updates:
General Counsel de Sousa reported that Senator Feinstein is planning to propose an amendment to the Endangered Species Act to alleviate the restrictions on pumping through the Delta. The language is being drafted at this time and specifics will be forwarded.
Memorandums summarizing adopted legislation amending the State’s Water Code have been prepared by Best, Best & Krieger and have been forwarded to the District. Senate Bill No. 8 was signed into law that impacts water diverters subject to the State Water Resources Control Board jurisdiction. This law increases reporting requirements and revises the types of water diversions exempt from reporting. Senate Bill 6X7 was signed into law and will require groundwater elevation monitoring for all basins and subbasins in California commencing by January 2012 that will establish a state-wide framework for groundwater monitoring programs.
BOARD OF DIRECTOR’S AGENDA
9. Report on Meetings Attended:
Director Aleshire reported he had attended ACWA’s Legislative Water Package Regional Implementation Workshop held on February 10th in Irvine. The newly adopted legislation on groundwater monitoring will initially be voluntary. Procedural guidelines for the law’s implementation are being developed.
At the ACWA/JPIA Executive Committee meeting a contract with the broker for the 3 insurance programs was executed. Director Aleshire noted that previously the broker had a gentlemen’s agreement with the ACWA/JPIA Chief Executive Officer. Executive Committee members surveyed on their opinion as to what the broker’s compensation should be ranged from $300,000 to the broker’s requested fee of $690,000. The California JPIA solicited bids for their brokerage service and the fees total $250,000. Brokerage fees of $690,000 as requested by the broker were approved by the ACWA/JPIA Executive Committee, however, subsequent action reduced the brokerage fees to $600,000. Director Aleshire stated that the brokerage services for the ACWA/JPIA could go out for competitive bidding in the future. Director Aleshire noted that he will be running as a team with Joan Finnegan of the Municipal Water District of Orange County for the officer positions of the ACWA/JPIA. Joan Finnegan will be seeking the Office of President of the ACWA/JPIA and Director Aleshire will be running for Vice President of ACWA/JPIA for the election to be held in May 2010.
CLOSED SESSION
10. A Closed Session was called by President Broomell at 2:52 p.m. pursuant to:
● Government Code §54956.8 – Real Property Transaction, Conference with Negotiator
Property:
12420 Montanya Drive, Valley Center, CA
Agency Negotiator: Gary T. Arant, General Manager
Negotiating Party: T-Mobile West Corporation
Under Negotiation: Terms of Lease
● Government Code §54956.9(b), Conference with Legal Counsel, Anticipated
Litigation
Number of potential cases: 3
RECONVENE
11. The Regular Board meeting was reconvened at 4:00 p.m. The following action was reported:
A Second Amendment to the Lease Agreement between the District and T-Mobile West Corporation at the Montanya Reservoir was approved with adoption of the following resolution:
RESOLUTION NO. 2010-03
RESOLUTION OF THE BOARD OF DIRECTORS OF VALLEY CENTER
MUNICIPAL WATER DISTRICT APPROVING A SECOND AMENDMENT
TO THE LEASE AGREEMENT BETWEEN VALLEY CENTER MUNICIPAL
WATER DISTRICT AND T-MOBILE WEST CORPORATION AT MONTANYA
RESERVOIR AND AUTHORIZING THE GENERAL MANAGER TO SIGN
by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
ADJOURNMENT
12. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 4:01 p.m.
ATTEST: ATTEST:
___________________________ ___________________________
President Secretary