VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting Tuesday, February 21, 2012 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, and Stone. Staff members present were: General Manager Arant, General Counsel de Sousa, District Engineer Grabbe, Director of Finance Jeffrey, Director of Operations Hoyle, IT Manager Pilve, Board Secretary Johnson and Accounting Manager Pugh. Spectators present were Mssrs. Jimmy Ayala, Tom Steinke and Alan Ziegaus – Pardee Homes.
1. Upon motion by Stone, seconded by Polito and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held December 19, 2011• Audit demand check numbers 130819 through 131315 for the period December 9, 2011 to February 9, 2012 and wire disbursements for November and December, 2011.• Treasurer’s Report for period ended November 30, 2011• Treasurer’s Report for period ended December 31, 2011• Quarterly report of employees’ expense reimbursements for the quarter ended December 31, 2011• Board of Director’s request for reimbursement of expenses and report of expenses• Population Estimate for District as of January 1, 2012• Re-issuance of Concept Approval for the Finlayson Line Extension (TPM 20052) consisting of 976 ft. of 8-inch water line and associated appurtenances• Re-issuance of Concept Approval for the Lizard Rocks Waterline Extension project, consisting of 275 ft. of 8-inch water line and associated appurtenances
2. Request from Pardee Homes to Resume Annexation Proceedings for the Meadowood Project:
General Manager Arant reported that a letter from Pardee Homes had been received requesting the District to resume annexation proceedings for the Meadowood Project. District personnel have attended preliminary meetings with LAFCO and the San Diego County Water Authority to review their processes and procedures. Staff is currently preparing a resolution requesting terms and conditions from the Water Authority and Metropolitan which will be presented to the Board for approval on March 19, 2012. Adoption of the resolution will be the formal start date of the project.
Representatives from Pardee were in attendance to answer any questions from the Board. Mr. Jimmy Ayala, Project Manager, reported that the project is expected to be presented at the July 2012 LAFCO meeting to begin the annexation process. A sixteen month review process will follow with the Water Authority and Metropolitan passing information back and forth before a decision is made. Mr. Ayala pointed out that the Meadowood project had received approval by the County Board of Supervisor’s in January and had a certified Environmental Impact Report. Once annexation is complete, project grading can begin.
Mr. Arant stated that the Water Authority had included this project in their Urban Water Management Plan, as had VCMWD. He indicated that staff would do everything it can to expedite the annexation process.
3. Resolution in Support of Bureau of Reclamation’s WaterSMART Program Grant Application for the Valley Center Water Reclamation and Reuse Program Facilities Feasibility Study:
District Engineer Grabbe reported that an application for development of a feasibility study under the Title XVI Water Reclamation and Reuse Program had been submitted for a federal grant to prepare a master plan of the District’s reclamation program. A similar application had been submitted last year based on the North Village project and was not approved. Feedback received from the Bureau of Reclamation (Reclamation) lead staff to change the approach this year to a District wide evaluation of the reclamation needs rather than a wastewater service project.
Approval of a resolution in support of the application for a 50/50 grant and, if awarded, authorization to use funds for the non-reclamation share of the grant was requested. The District has received commitments from three developments (North Village, Lilac Hills Ranch and Meadowood) to fund the non-reclamation share of the grant because this study will benefit each project by meeting the preliminary design requirements needed for concept approval.
Mr. Grabbe explained that Bureau of Reclamation approval of the feasibility study will allow the District to pursue Congressional authorization of construction grant opportunities for reclamation projects. The feasibility grant application process requires the District to provide an official resolution, adopted by the Board, verifying:
• The identity of the official with legal authority to enter into a financial agreement with Reclamation,• that the Board of Directors has reviewed and supports the application,• the capability to provide the amount of funding and/or in-kind contributions specified in the funding plan, and• that the applicant will work with Reclamation to meet established deadlines for entering into a cooperative agreement.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2012-01
RESOLUTION OF THE BOARD OF DIRECTORS OFVALLEY CENTER MUNICIPAL WATER DISTRICT COMMITTING TO FINANCIAL AND LEGAL OBLIGATIONS ASSOCIATED WITH THEBUREAU OF RECLAMATION TITLE XVI GRANT APPLICATION FORPREPARATION OF THE VALLEY CENTER WATER RECLAMATIONAND REUSE PROGRAM FACILITIES FEASIBILITY STUDY
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, and Stone NOES: None ABSENT: Director Haskell
GENERAL MANAGER’S AGENDA:
4. Strategic Plan Performance Measurement Results for Calendar Year 2011:
A summary of the District’s Strategic Plan Performance Measurement Results for calendar year 2011 was provided by General Manager Arant, as outlined below:
• Customer Satisfaction – “Meets” or “Exceeds” customer expectations – 100%
• Unknown Water Loss – Measured in AF, UWL shall be no more than 5% above the average UWL for the last five calendar years. Avg. = 1,879 AF; 2011 = 1,524 AF
• Discretionary Reserves – 6.0 months of Operations and Maintenance Budget
• District Share of Total Commodity Costs – 10.5% for full-price and 13.2% for IAWP
• Pump Efficiency – 102% of design efficiency
• Project Actual Cost vs. Estimated Cost – One project completed at 2.5% below engineer’s estimate
• Water Service Reliability – 99.999% service reliability
• Compliance with All State and Federal Regulations – 100% compliance
• Lost Time Accidents – 0.0069% lost time hours
• Return on Investments – 1.04% weighted average return on all investments.
Expectations were exceeded in seven areas and were met in the other three areas.
5. San Diego County Water Authority’s Board of Directors’ Meeting:
General Manager Arant reported on the following items from the January 26, 2012 SDCWA Board of Directors’ meeting:
• In anticipation of the QSA lawsuit, the Water Authority received authorization to enter into an agreement with the Imperial Irrigation District to provide funding for an environmental review to come up with some new mitigation measures for the Salton Sea. The Water Authority’s cost under the agreement is estimated at $855,000.
• Budget amendment approved for consultants working on the Desalination project. The Water Authority is now in the process of negotiating the operating agreements and the water purchase agreements.
• Betty Ferguson, who has been on the Vallecitos Board for many years, is retiring from the Water Authority Board of Directors and will be replaced by Dennis Lamb.
6. Miscellaneous Information Items:
• General Manager Arant reported that there will be a meeting with Water Authority staff next week to talk about the special agricultural water rate. One item to be discussed is that agriculture will not be paying any of the costs for the desal project.
• The Managers of Valley Center, Rainbow, Fallbrook and Yuima are working on a draft letter to the Water Authority asking them to extend the special ag water rate, as it is currently configured, until 2016.
• The Functional Consolidation Group has been designing and will soon be installing the radio network that will integrate the systems of all four agencies. It is expected to be complete by the end of this fiscal year.
7. General Counsel de Sousa reviewed the changes to the Brown Act that affect public agencies:
• Provisions were added to require the posting of agendas on the public agencies web site.
• Any time there is a simultaneous or consecutive meeting of the same body, any compensation they are receiving for attendance must be verbally reported.
• Agency executives can no longer hold special meetings to discuss contract or labor negotiations; it must be done during a regular meeting due to the amount of time required for notification of the meeting.
BOARD OF DIRECTORS’ AGENDA AND REPORTS ON MEETINGS ATTENDED
8. Director Aleshire reported that he had previously been on the ACWA JPIA Board for six years which provides property, liability, and worker’s compensation insurance to water agencies. This past year he has been on the ACWA HBA Board which provides medical, dental and vision services. JPIA was successful in pulling out of ACWA and operating on their own and HBA has been trying to do the same. Since HBA was dependent on ACWA for administrative support (finance, HR, etc.), it was suggested that they hire a third party administrator or utilize ACWA for those services. In January, Dr. Aleshire was successful in getting the HBA Board to accept the ACWA offer for a six month administrative services contract. He has now been appointed to chair a committee to develop a permanent solution for the administrative services of HBA. After discussing the various options with the HBA Board, he has been directed to explore the possibility of merging with JPIA. In order for HBA to dissolve and merge with JPIA, 75% of their member agencies must vote to approve it. Pursuing this merger has many financial benefits and has been approved by the JPIA Executive Committee and the HBA Board of Directors. A target date for the merge has been set for July 1, 2012, allowing only a few months to complete the legal, personnel and voter requirements. Once complete, the HBA Board would be terminated and a Health Benefits Program Committee would be formed at JPIA.
9. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at 4:11 p.m.
____________________________ _______________________________ President Secretary