VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, April 26, 2004
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 Cowett, Director of Finance Jeffrey, Director of Operations Dacus, District Engineer Jewell, Project Engineer Grabbe, Project Manager Williams, Construction & Maintenance Supervisor Hoyle, IT Specialist Rivard and Board Secretary Stetson. Spectators present were Mr. Tebbetts and others.
CONSENT CALENDAR
1. Upon motion by Aleshire, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held April 5, 2004
• Audit demand check numbers 98476 through 98737 and quarterly wire disbursements 04-001 through 04-025
• Quarterly report of expense reimbursements per Government Code §53065.5
ACTION AGENDA
2. Public Hearing to Consider Proposed Meter Capacity Charges:
The District’s meter capacity charges, a component of the cost for a new water meter installation, are collected and allocated toward construction of capital projects that provide supply capacity for new developments. In compliance with the Government Code concerning establishment or an increase of meter capacity charges, an analysis of the cost of providing service to new development projects, and the District’s Water System Master Plan, it was determined that the current meter capacity charges do not raise sufficient funds to pay for public facilities necessary to provide water service needs of anticipated new development projects and they do not exceed the estimated reasonable cost of providing water service and facilities to new development projects.
The public hearing to consider the proposed increases in the District’s meter capacity charges was opened at 2:06 p.m. Ordinance No. 2004-04 would increase the meter capacity charges effective July 1, 2004, by the change in the Engineering News Record, Los Angeles Construction Cost Index, representing a 2.2% increase over the current charges as set forth below:
Meter Size Current Charge Proposed Charge
¾” 1,830 1,870
1” 3,110 3,180
1-1/2” 6,040 6,180
2” 9,700 9,920
3” 18,300 18,710
The proposed increases in the District’s meter capacity charges had been published and posted. No written communication was received and there were no comments from the audience. The public hearing was closed at 2:10 p.m.
Upon motion by Polito, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2004-04
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING ADMINISTRATIVE CODE SECTION 160.4(c)
INCREASING METER CAPACITY CHARGES
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
3. Public Hearing to Consider Establishing a
Lower
Moosa
Canyon
Sewer Capacity Charge and Sewer Capacity Reservation Fee:
Property owners requesting sewer capacity from the Lower Moosa Canyon Water Reclamation Facility are currently required to execute a Sewer Service Agreement with the District. The cost of capacity is an estimate of the cost to expand the treatment plant as necessary to construct the required capacity to provide sewer service. The capacity charge has been $6,000 per Equivalent Dwelling Unit (EDU).
Staff proposed establishing a sewer capacity charge for the Lower Moosa Canyon Water Reclamation Facility of $6,450 per EDU based on the estimated cost to expand the existing facility to a sufficient capacity for the service area. This proposed fee was calculated based on the estimated Facility Expansion Plan costs for a multi-phased expansion to 1.0 mgd that were adjusted for inflation with consideration of a cash flow analysis based on a 25-year build-out. It was proposed that the sewer capacity charge of $6,450 per EDU could be paid in incremental payments as follows:
Payment 1 $750 prior to issuance of a Project Facility Availability Letter
Payment 2 $3,250 prior to issuance of a Project Facility Commitment Letter
Payment 3 Remaining balance paid prior to connection to the sewer system or issuance of an Agency Clearance Letter; and
$500 future sewer capacity reservation fee
The status of sewer capacity commitments at the Lower Moosa Canyon Water Reclamation Facility and remaining capacity units were reviewed as shown below:
EDUs
Connected 2,222
Fully Paid 333
Committed 323
Available 231
Liens 802
Future Build-Out 1,089
5,000
Project Engineer Grabbe explained that the Sewer Capacity Reservation Fee is used to offset the cost of maintaining the equipment and facilities needed to maintain the excess capacity for the sewer applicant. Per the proposed Administrative Code changes addressing the Sewer Capacity Reservation Fee for the Lower Moosa Canyon Water Reclamation Facility’s service area, the Reservation Fee shall be implemented two years after the issuance of the Project Facility Commitment letter if the applicant’s project has not yet connected to the sewer system. The Sewer Capacity Reservation Fee shall be equivalent to 50% of the current monthly sewer service charge and shall be applied against previously collected sewer capacity deposits. Further provisions of the Sewer Capacity Reservation Fee are that the commitment shall be terminated and the balance of the deposit refunded if the applicant has not connected to the sewer system within 3 years of the date of the Project Facility Commitment letter. Applicant may request the commitment be extended and may be extended on a year-by-year basis with all accrued capacity reservation fees paid in full.
Applicants for sewer service for parcels located within the original Meadows development (1,094 EDUs) shall continue to pay a Capacity Reservation Fee of $675 per EDU.
The public hearing on the proposed sewer capacity charge and capacity reservation fee was opened at 2:33 p.m. The proposed changes had been published and posted. No written communication was received and there were no comments from the audience. The public hearing was closed at 2:36 p.m.
Adoption of Ordinance No. 2004-05 was recommended to establish the proposed Sewer Capacity Charge of $6,450, revise the Capacity Reservation Fee and eliminate the need for future Sewer Service Agreements for the Lower Moosa Canyon Water Reclamation Facility service area. Said changes would be effective July 1, 2004.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2004-05
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING ADMINISTRATIVE CODE SECTIONS 171.2,
171.3 AND 171.10 TO PROVIDE FOR ESTABLISHING A
SEWER CAPACITY CHARGE AND REVISING SEWER
CAPACITY RESERVATION FEES FOR THE LOWER
MOOSA
CANYON
WATER RECLAMATION FACILITY
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
4. Approval of the Design of the
Rodriguez Road
Pipeline Replacement:
Project Manager Williams stated that design proposals were solicited from 4 engineering firms for the preparation of engineered construction drawings and specifications to be used for securing construction bids for the Rodriguez Road Pipeline Replacement project. Proposals were solicited per Administrative Code Section 135.3(b), which provides that a minimum of three proposals shall be solicited for projects under $50,000. However, due to complexities with this project; i.e. amount of survey and facility location verification, all proposals received were in excess of $50,000. A waiver of the requirement that statements of qualifications be
obtained from a minimum of ten consulting firms for projects between $50,000 and $250,000 was requested.
The Rodriguez Road Pipeline replacement project involves replacing an existing 18-inch diameter steel pipeline. Design of this project consists of approximately 3,475 feet of 20-inch diameter ductile iron pipe paralleling Rodriguez Road and 400 feet of 16-inch diameter ductile iron pipe located east of the proposed Sukup Development.
Board approval to enter into an agreement with Kennedy/Jenks Consultants for engineering services for the preparation of drawings and specifications for the Rodriguez Road Pipeline Replacement project for a not-to-exceed amount of $61,066 was recommended.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the requirement that proposals be sought from ten or more service providers for a project greater than $50,000 (Sec. 135.5 of the Administrative Code) was waived and the Board approved entering into an agreement with Kennedy/Jenks Consultants for the preparation of drawings and specifications for the Rodriguez Road Pipeline Replacement project for an amount not-to-exceed $61,066.
5. Award of Contract for the
Lilac Road North
Pipeline Replacement Project:
Bids for the Lilac Road North Pipeline Replacement project were received on April 13, 2004, with the lowest bid submitted by Ahrens Corporation at $271,260. The engineer’s estimate for this project was $290,360.
District Engineer Jewell recommended award of contract for the Lilac Road North Pipeline Replacement project to Ahrens Corporation noting that references were contacted and positive comments were received.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-15
RESOLUTION OF THE BOARD OF DIRECTORS
OF
VALLEY
CENTER
MUNICIPAL WATER
DISTRICT AWARDING CONTRACT FOR THE
LILAC ROAD NORTH PIPELINE REPLACEMENT PROJECT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
6. Resolution Supporting Proposed “Local Taxpayers and Public
Sa
fety Protection Act”:
General Manager Arant reported that due to the State’s budget deficit, water agencies and other special districts are losing $900 million a year in local tax dollars as a result of tax shifts. The Governor has proposed shifting another $100 million a year in local revenues from special districts as part of the 2004-05 state budget, and the State Legislative Analyst’s Office released a report proposing another $400 million shift from special districts statewide.
The League of California Cities, California Association of Counties, California Special Districts Association and the Association of California Water Agencies (ACWA) are sponsoring the “Local Taxpayers and Public Safety Protection Act” which is expected to qualify for the November 2004 ballot. This measure would amend the State constitution requiring voter approval prior to the state Legislature taking and using local revenues for state purposes and would strengthen existing laws requiring state reimbursement to local government for mandated state costs. General Manager Arant noted that negotiations are continuing with Governor Schwarzenegger in which there is a proposal that there be a shift of $2.8 billion of local government tax revenue to the State for a two year period with the Governor’s support of a Taxpayer Protection Act adopted by the Legislature that would be placed on the ballot for voter approval.
Adoption of Resolution No. 2004-13 was recommended to express the District’s support for a state-wide ballot initiative to allow voters to decide whether local tax funds may be taken, shifted, diverted or otherwise used to fund state government operations and responsibilities.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-13
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE
VALLEY
CENTER
MUNICIPAL WATER
DISTRICT SUPPORTING THE LOCAL TAXPAYER
AND PUBLIC SAFETY PROTECTION ACT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
7. Resolution Supporting the City of
Carlsbad
’s Desalination Project:
At the April 5, 2004 Board meeting, staff had been directed to prepare a resolution supporting the City of Carlsbad’s Desalination Project. Resolution No. 2004-14 sets forth that the San Diego County Water Authority adopted its updated Regional Facilities Master Plan which identified the “Supply from the West” as the preferred alternative. The resolution encourages the San Diego County Water Authority to affirm its support for local desal development and to provide assistance to Carlsbad in seeking funding from the Metropolitan Water District and to purchase excess supply. Said resolution would be disseminated to member agencies of the Authority and the regional print media.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-14
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
SUPPORTING DEVELOPMENT OF DESAL AND
ENCOURAGING THE
SAN DIEGO
COUNTY
WATER
AUTHORITY TO TAKE ACTION CONSISTENT WITH
ITS STATED SUPPORT FOR LOCAL DESAL PROJECTS
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
8. Review of Provisions of SB 1272 (Ortiz) on Special District Reform:
Senator Ortiz has introduced Senate Bill 1272 in an effort to incorporate reform measures for California special districts which is in response to the inappropriate and illegal activities of staff and directors of the Sacramento Suburban Water District located in Sacramento as well as some other water districts.
SB 1272 has been amended and Senator Ortiz is working with groups to consider further amendments. General Manager Arant outlined provisions of SB 1272 and requested recommendations for amendments from the Board. Provisions of the proposed bill reviewed were: auditing and financial reporting and changing of auditing firms or rotation of principals; implementation of special auditing for “high risk” transactions; orientation course governing official conduct; whistle blower protection, and compensation benefits.
President Broomell expressed and the Board concurred that Senator Ortiz should specifically address those agencies whose Board members and management staff have violated the public trust through their inappropriate actions rather than propose reform measures that are punitive and restrictive such that it could inhibit the ability of special districts to function. It was noted that Senator Ortiz’s 6th Senatorial District includes the Sacramento Suburban Water District’s service area.
Amendments that have been proposed include expanding the requirement for ethics orientation and subsequent courses to include officials and management staff of all public entities throughout the state not just for special districts. Regarding whistle blower protection, the definition of gross misconduct and gross negligence will be pursued. Also, maintaining the Board of Directors’ compensation at a maximum of 10 per month rather than the proposed limit of 6 will be sought, as well as an amendment which would remove the provision limiting expense reimbursement to that provided state employees. It was proposed to recommend that reimbursement of expenses be that compensated State legislative members.
The Board unanimously approved a position of “Oppose Unless Amended” regarding the proposed Senate Bill 1272 (Ortiz), and directed staff to pursue amendments to this legislation as discussed.
9. Overview of the District’s Proposed Budget for Fiscal Year 2004-05:
Director of Finance Jeffrey explained that he will present an outline of major projects, notable changes and capital projects in the budget proposed for Fiscal Year 2004-05 that will be presented and discussed further at the May 17th Board meeting. The budget outline was presented as summarized below:
Revenues:
▪ Water sales projected at 44,500 ac. ft.
▪ Water rate changes are Metropolitan Water District’s water delivery charge (+6%), and capacity reservation charge (+9%) and the District’s portion for inflation (+3%).
▪ 838 new meters are anticipated to be installed that includes 410 fire meters.
▪ Interest income is projected at $525,000 (average 2.1%), which is an equivalent to $12 per ac. ft.
▪ Property taxes estimated at $1,326,000, a 2% increase over the current year though $200,000 to $300,000 may be lost due to the current state budget deficit.
Energy:
▪ Pumping costs are budgeted at $96 per ac. ft. Current pumping charges are adequate
Personnel:
▪ Two and one-half new positions will be requested (2 Admin. Assistants for Engineering and Field Administration and a Pump Facilities Tech for Field Operations)
Other Operating Items:
▪ Temporary employee for GIS
▪ Purchase of 7 trucks; 4 replacements, 3 new
Capital Projects:
▪ Capital project funding requests total $6,452,500 which are listed on the attached Exhibit “A”.
Moosa Sewer:
▪ A $3.00 increase in the monthly sewer service charge will be proposed ($37.00/EDU) to be effective July 1, 2004 for funding of the Moosa Sewer Fund Replacement Reserve.
▪ Capital projects proposed are completion of a Waste Discharge Permit Report ($50,000) and Master Plan ($50,000)
▪ Increase the Septic Tank Effluent Pump (STEP) maintenance charge by inflation or by $1.00 for a total STEP maintenance charge of $31.00 per EDU/month.
Skyline Sewer:
▪ Skyline Ranch sewer is self-supported. O&M expenses expected to increase from $88,012 to $125,655 or an equivalent EDU rate increase from $33.04 to $47.17.
Woods Valley Ranch Sewer:
▪ A budget of $338,602 includes operating expenses ($232,666) and replacement reserve fund ($105,936). The monthly charge will increase from $50/unit to $98.60 that will be collected through an assessment on the property tax bill. A public hearing will be held June 7th pertaining to the Woods Valley Sewer Service Charge.
The proposed Fiscal Year 2004-05 budget will be presented and reviewed at the May 17, 2004 Board meeting.
GENERAL MANAGER’S AGENDA
10. Review of Miscellaneous Informational Items:
Meeting on the Governance Structure at the San Diego County Water Authority - A meeting on this matter was held in Sacramento. Though no agreement was reached, continued support for reform was expressed by state legislators Hollingsworth, Ducheny and Canciamilla.
Agreement with the San Pasqual Indian Reservation for Water Service – General Counsel has been working with the attorney for the San Pasqual Indian Band to execute an agreement with the District for water service on properties within the reservation but outside of the District’s service area. The current agreement is set to expire the end of May 2004, but General Counsel Cowett stated that progress has been made toward finalizing an agreement which may occur after May 31st.
Corporate Facility Expansion – Appraisals are underway and the result should be presented to the Board in May or June of 2004.
Exchange Agreements with Rincon del Diablo M.W.D. - Upon researching the original exchange agreement (1961) to provide water service to an area within the Rincon del Diablo M.W.D.’s service area, it was discovered that the triangle area (North Avenue, N. Broadway and Kaywood Drive extension) was included in the original exchange agreement. Therefore, the existing agreement can be amended to address the request to provide additional service in this identified area.
Post Fire Rebuilding Requirements – The Board was informed that some property owners that are pursuing rebuilding on their properties affected by the recent fire are being required by the fire department to install certain improvements such as installation of a fire hydrant and in some cases would require a line extension.
50th Anniversary Celebration – Preparations for the District’s 50th anniversary Open House celebration to be held July 12th are moving forward.
Certificate of Appreciation from Palomar College – Chuck Dacus, Director of Operations, received a Certification of Appreciation from Palomar College recognizing his dedication and contribution in developing and maintaining the Water Technology classes at Palomar College.
Sewer Line Break - Construction & Maintenance Supervisor Hoyle reported that a leak and cracks were discovered on April 7th in the 12-inch sewer transmission main in the area east of Old 395 before Old Castle Road, and temporary emergency repairs were completed. This main extends from the Meadows area. The cracks were near a 30 foot concrete encasement of the pipe where the creek bed had once been located. Repairs were then undertaken during the night due to the sewer flows. These repairs included approximately 46 feet of replacement pipe and a concrete casing. The sewer pipe had been compromised with erosion of soil and relocation of the creek bed which has occurred over the years. A portion of an embankment had fallen on the pipe which may have occurred with a recent earthquake. The full length of the sewer main has been inspected with no noticeable problems. A video inspection will also be conducted.
GENERAL COUNSEL’S AGENDA
11. Court Decision Affecting Water
Wheeling
:
General Counsel Cowett reported on a case that could have ramifications on water wheeling such as from the Colorado River. There was a suit filed in Florida concerning the wheeling of water from one side of a canal to another in which it was cited that the source water had more phosphorus than did the receiving water. It was determined by the Supreme Court that it was a point source and a discharge and therefore required a Permit. The trial court will determine what constitutes unitary water. The court will determine if water that is from the same source, though it could be from two separate bodies of water, is a unitary water and, therefore, a permit would not be required for transfers.
CLOSED SESSION
12. A Closed Session was called by President Broomell at 4:25 p.m. pursuant to:
▪ Government Code §54957.6(a), Conference with Labor Negotiators
Agency Representatives: Gary T. Arant, General Manager
William J. Jeffrey, Director of Finance
ADJOURNMENT
13. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at
5:10 p.m.
to
Monday, May 10, 2004
beginning at
2:00 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary