VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, April 5, 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 Polito, Aleshire, Stone and Haskell. Director Broomell was absent. Staff members present were: General Manager Arant, General Counsel Cowett, Director of Finance Jeffrey, District Engineer Jewell, Water Operations Supervisor Bull, Project Engineer Grabbe, Project Manager Williams, Construction & Maintenance Supervisor Hoyle, IT Specialist Learue and Board Secretary Stetson. Spectators present were: Kelly Spire, Rosalind Orner, Peter Orner, Barbara Kramer, Tom Kramer, Muriel Walker, Clay Walker, Rosie Groh, Dennis Groh, Bitsy Mason, Sara Medall, Stephanie Terrell, Lori Hatley, Ron Lamb and David Ross.
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 March 15, 2004
• Quitclaim of a portion of the District’s easement recorded May 5, 1977 as File/Page No. 77-170275 (Sherwood Ridge Unit 2, TM 5039)
• Audit demand check numbers 98117 through 98475
• Treasurer’s Report and Financial Statements for the period ended February 29, 2004
ACTION AGENDA
2. Lease Agreement with Valley Center Parks & Recreation District for Recreational Use of
Lake
Turner
:
Director Polito stated that he has been advised that per the Fair Political Practices Act, he has a conflict of interest as he owns property across from the Lake Turner property and, therefore, will abstain from the discussions and vote on this issue.
Director Aleshire stated that the proposed Lease Agreement is a culmination of attempts over several years to establish a beneficial use for the community of the Lake Turner property. He expressed his thanks to Director Stone who served on the Lake Turner Recreational Use Subcommittee with him as well as to Valley Center Parks & Recreation District Board Members Fran DeWilde and Ron Lamb and Gary Arant and Joyce Johnson, General Managers of the Valley Center Municipal Water District and Valley Center Parks & Recreation District, respectively.
General Manager Arant reported that the proposed Lease Agreement for the Development, Operations and Maintenance of Lake Turner Lands with the Valley Center Parks and Recreation District was approved by the Parks & Recreation District’s Board of Directors at their February 26th meeting. The Agreement presented for the Board’s consideration of adoption was summarized by General Manager Arant. Lease agreement is for an initial 25-year term and renewable at the option of the Recreation District if the conditions of the agreement have been met. Provisions include time frames for completion of the conceptual planning, initiation of recreational activity upon obtaining all required regulatory permits and approvals, as well as completion of planned facilities per the adopted Master Plan. It was pointed out that the District will have final approval of all activities and facilities to be constructed and the recreation District will secure liability and workers’ compensation insurance coverage and hold the District harmless from liability. The District shall make up to a $20,000 contribution toward the planning phase or facility construction for the recreational development at Lake Turner. It was clarified that the District’s use of Lake Turner shall have precedence, and the Recreation District shall conduct its operations in a manner that enables the District to utilize Lake Turner for its water purposes.
Property owners within the vicinity of Lake Turner and those that previously had indicated an interest in receiving information on the proposed use of Lake Turner were mailed a notice regarding the proposed recreational use of Lake Turner and the consideration by the Board of entering into a Lease Agreement with the Valley Center Parks and Recreation District.
Audience members addressed the Board with the following questions/concerns pertaining to the proposed recreational use of Lake Turner:
Muriel Walker – Expressed concern about the possibility of a fire starting on the Lake Turner property as it would endanger the surrounding homes. She asked if fires would be allowed by those using the lake and what would be done to protect the animals on the property.
Rosalind Orner – Concerns are maintaining the peaceful and quiet neighborhood near Lake Turner, as well as access for parking, camping time limits, security improvements, hours of operation, homeless, noise, flora/fauna and the potential for
a fire. Mrs. Orner asked that the nearby property owners’ desire to maintain a quiet and secure area should be taken into consideration when developing a recreational master plan and that a $2 million liability policy may not be adequate. She asked for development of basic rules and regulations in the lease agreement. Mrs. Orner inquired as to the experience of Valley Center Parks & Recreation personnel in operating and maintaining an operation similar to that proposed for Lake Turner.
Stephanie Terrell – Stated she is concerned about the wild life and the potential for fire if Lake Turner property is open to the public which could be devastating for the habitat that exists on the property for birds and other animals. Mrs. Terrell also expressed concern that the homeless may frequent the property.
Kelly Spire – Voiced her concern regarding a fire erupting on the Lake Turner property with its use, increased traffic and the animal life residing on the Lake Turner property. She stated that the Canadian geese live on the lake from November through March. Mrs. Spire questioned the water district expending additional funds for the recreational development proposal, and the liability issues from such an operation.
Cla Walker – He asked if a chain link fence would be constructed between the Lake Turner property and adjacent properties noting that hikers and other users of the lake property could trespass. Mr. Walker stated that he has spotted several birds that are endangered on the Lake Turner property and that efforts should be taken to ensure their continued existence on the property.
Bitsy Mason – Mrs. Mason asked if there would be any guarantee that the Lake Turner property would not be sold to a developer in the event that it is not developed for recreational use as proposed with the lease agreement with the Recreation District.
Lori Hatley – She stated that based on her 16 years of experience with a local law enforcement agency that there will be increased crime, vandalism, trash, fires and drug use if the lake is opened for public use.
Sara Medall – Expressed concern regarding the steep slope from the lake to her home on Turner Heights Drive as it is highly inflammable and fire starting on the lake property is a great concern. Further, she inquired how people using the recreational facilities proposed for Lake Turner will be kept out of the lake especially in light of proposed activities such as canoeing, fishing and paddle boating, and what will be done to improve the quality of the water in Lake Turner.
Rosie Groh – She asked why an environmental study is being conducted in the 2nd phase of the development plans rather than the initial phase.
Barbara Kramer – Expressed concern about a fire on the Lake Turner property and it wafting up to her property on Alps Way. And, there is concern regarding retaining the habitat for the animals that are on the property and for their security once there is encroachment of humans within their habitat.
General Manager Arant responded to the questions posed stating that the District’s Lake Turner property is approximately 250 acres. An evaluation of recreational use for the Lake Turner property was initiated in 1997. Due to the steepness of the property on the south side, the area for recreational use development has been focused on the north side. On the north side, there are existing roads nearby and the borrow areas that had been used during construction of the Turner Dam.
Many of the questions and concerns will need to be addressed by the Valley Center Parks & Recreation District regarding the planned recreational uses and development of rules and regulations. To facilitate this process, the names and addresses of the adjoining property owners of the Lake Turner lands that received notification from the District will be forwarded to the Recreation District.
Regarding the concern that a fire could erupt on the Lake Turner property and threaten surrounding homes, it was noted that the concern is valid but it may be more likely with illegal activities on the property rather than regulated recreational activities. General Manager Arant noted that environmentally it is not possible to obtain permits to strip vegetation from the slopes. However, property owners adjacent to Lake Turner land have been given permission to clear up to 100 feet within the District’s property. It is felt that the problem of trash dumping and other illegal activities would diminish upon regular use of the Lake Turner property. It was clarified that the general liability insurance to be maintained by the Recreation District shall be not less than $2 million per occurrence which is a standard accepted by the District’s insurance carrier.
An environmental impact study that will be completed for development of Lake Turner for recreational use will address wildlife. As part of this study, the plant life, and animals will need to be surveyed and mitigation measures implemented to protect the beneficial uses of the lake. An environmental review is conducted after the conceptual phase as a proposed project is necessary in order to conduct an environmental review of the proposal.
General Manager Arant clarified that the Lake Turner property could be sold for private development, but the lake would have to be maintained per California law as it provides beneficial uses. In response to the quality of the water in Lake Turner, tests conducted report that it is high in turbidity (suspended matter and is not used in the District’s potable water system), but the tests show it exceeds water body contact standards set by the State of California.
Per the lease agreement, money to be expended by the District will be limited to $20,000 and may be used for such facility improvements as road grading, restroom facilities and/or additional fencing.
Property owners surrounding the Lake Turner property and other interested parties were encouraged to participate in the development of the Master Plan for the ultimate development of recreational uses at the lake.
In response to Mr. Orner’s inquiry if there have been increases in illegal activities on properties upon opening them to the public, it was mentioned that there will be an ongoing Joint Steering Committee to oversee operations as well as participation during development of the recreation master plan.
Board approval of the Lease Agreement for the development of recreation at Lake Turner will allow for development of a master plan and the environmental review process which consists of planning, environmental scoping, environmental and Major Use Processes. As part of this environmental process, there will be several opportunities for the public to participate, and the issuance of a major use permit would incorporate all mitigation measures developed through this process.
Mr. Ron Lamb, Director of the Valley Center Parks and Recreation District, explained that the efforts to develop Lake Turner for recreation have been ongoing for some time as it is recognized that there is a tremendous potential for its use though mitigation measures will need to be implemented. Development of Lake Turner has been pursued as it is felt that utilizing this asset would be for the greater good for the residents of Valley Center. Mr. Lamb assured the audience members that during the review process of the proposed development plans, their concerns will be listened to and addressed and will have an impact on the decision making.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-10
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLEY CENTER MUNICIPAL WATER DISTRICT APPROV-
ING A LEASE AGREEMENT WITH THE
VALLEY
CENTER
PARKS AND RECREATION DISTRCT FOR THE DEVELOPMENT,
OPERATIONS AND MAINTENANCE OF LAKE TURNER LANDS
was adopted by the following vote, to wit:
AYES; Directors Aleshire, Stone and Haskell
NOES: None
ABSTAIN: Director Polito
ABSENT: Director Broomell
3. Approval to Update the Exchange Agreement with Rincon del Diablo M.W.D.:
In 1961, the District entered into an exchange agreement with Rincon del Diablo M.W.D. to provide water service to parcels near North Broadway and Laurashawn Avenue located within Rincon del Diablo M.W.D.’s service area. Subsequent exchange agreements with Rincon del Diablo M.W.D. were executed in 1965, and in 1978 for a total of five exchange agreements. Rincon del Diablo M.W.D. does not have facilities in the vicinity to service this portion of their service area and District facilities are nearby. Per the exchange agreements, water service is provided in the Rincon del Diablo M.W.D. service area to 72 meters under the following classifications of exchange service:
61 are served off of Rincon lines and receive Rincon bills;
8 are served off of Valley Center lines and receive Rincon bills; and
3 are served off of Valley Center lines and receive Valley Center bills
A request has been received from Rincon del Diablo M.W.D. for an additional exchange agreement for 6 meters to two parcels with a total of 3.22 acres.
Staff proposed and requested Board approval to develop a new exchange agreement with Rincon del Diablo M.W.D. that incorporates all parcels within Rincon’s service area bounded by North Avenue, North Broadway and Kaywood Drive extension on the east. Further, new accounts receiving water through the exchange agreement would pay the District’s and San Diego County Water Authority’s meter capacity charges and it was proposed to increase the amount billed to Rincon from $15.00 per acre foot to $75.00 per acre foot with annual adjustments per the San Diego Consumer Price Index.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the Board authorized staff to enter into discussions with the Rincon del Diablo Municipal Water District to develop an expanded meter service exchange agreement as outlined above to serve those properties within the Rincon del Diablo M.W.D. service area near Laurashawn Avenue, North Broadway, North Avenue and Rincon Avenue.
4. Request for Budget Adjustment for the
Champagne
Lakes
Pipeline Relocation Project:
Project Manager Williams explained that the Champagne Lakes Pipeline Replacement project was awarded to KTA Construction and it is currently under construction. This project consists of the installation of approximately 3,500 linear feet of 14 and 12-inch ductile iron pipe within Old Highway 395 between Nelson Way and Ritson Road. Budgeted funds were for the project’s design, construction, right-of-way acquisition, and project administration. However, the contract has been
expanded to include installation of an in-line plug valve and associated appurtenances on the existing Rainbow transmission pipeline along Nelson Way. This valve will be utilized during the Nelson Way Pipeline Replacement project scheduled for Fiscal Year 2004-05 to minimize construction related service interruptions. Adjustment of the 2003-04 budget was requested to appropriate an additional $60,000 for the Champagne Lakes Pipeline Replacement Project for the change order (plug valve and appurtenances), additional inspection/administration costs and contingency funds.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-12
RESOLUTION OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE 2003-04 BUDGET BY APPROPRIATING
AN ADDITIONAL $60,000 TO THE
CHAMPAGNE
LAKES
PIPELINE RELOCATION PROJECT (NO. 01-5627.78)
was adopted by the following vote, to wit:
AYES; Directors Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Broomell
Director Aleshire suggested and the Board unanimously agreed and directed staff to include a summary of completed capital improvement projects in the District’s monthly Status Report that will include data on the project’s budgeted amount, adjustments and the total contract amount.
5. Approval of the Design Contract (Task Order No. 7) for the
Couser
Canyon
Pump Station Reconstruction Project:
As per the District’s as-needed professional services agreement, a design proposal was requested and received from R.W. Beck for the design and preparation of engineered construction drawings for specifications for the Couser Canyon Pump Station Reconstruction project. The proposed fee from R.W. Beck for this design contract is not-to-exceed $68,577.
Upon motion by Stone, seconded by Aleshire and unanimously carried, the Agreement for Professional Services with R.W. Beck for the design and preparation of engineering drawings and specifications for the Couser Canyon Pump Station Reconstruction project at a not-to-exceed cost of $68,577 was approved.
6. Survey of General Counsel and Auditing Services Fees:
In compliance with the District’s Administrative Code (Sec. 135.2), a survey of general counsel and auditor fees was completed. Data was collected from 14 comparable water agencies in San Diego and Southwestern Riverside counties. The survey provides a comparison of costs for general counsel and auditing services fees for the Board’s review.
7. Board Per Diem – Annual Review:
Per Board policy, the Board’s per diem is reviewed annually for consideration of a change. At present, the Board receives compensation at $100.00 per diem with a maximum of 10 meetings per month. The last adjustment to the per diem was in February of 1993.
The Board may increase its per diem amount by 5% for each calendar year since the date of the last adjustment or to a maximum of $171 per day of Board business. A change to the Board’s per diem requires a public hearing to be conducted on the matter following notices of the proposed change in the newspaper.
The Board elected to retain its current compensation of $100.00 per diem.
8. Review of Summary on Overtime Usage:
A summary of District staff’s overtime for Fiscal Year 2000-2001 through February of Fiscal Year 2003-04 was provided as directed by the Board. Overtime expenses shown as a percent of labor and benefit expenses were reported as follows:
2.66% - Fiscal Year 2000-2001
2.91% - Fiscal Year 2001-2002
2.94% - Fiscal Year 2002-2003
5.02% - Through February of Fiscal Year 2003-2004
The increase in overtime expenses in the current fiscal year is largely due to overtime work during the Paradise Fire ($18,951) and significant increases in development activity that has impacted both the Field and Engineering Departments.
Because the current level of development is expected to continue for several more years, two and one-half new positions will be requested in the 2004-05 budget. They
are a half position for Field Administration, one position for Pump & Facilities Maintenance, and one for Engineering Administration. In the current fiscal year, 2 additional authorized positions were approved for the meter department to meet workload demands. Also, the current meter technician position with the incumbent who is on disability will be filled if that position becomes vacant.
9. As-Needed Professional and Consulting Services:
In 2001, three pre-approved professional and consulting firms were approved that have been used for “as-needed” professional consulting services. The length of contract for “as-needed” professional and consulting services is up to two years, with an option to extend for up to one additional year.
Expansion of the selection of as-needed professional and consulting firms from three to six firms was recommended in order to provide a larger range of specialties and firm sizes.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2004-03
ORDINANCE OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING ADMINISTRATIVE CODE ARTICLE 135,
SECTION 135.4(a), FOR AS-NEEDED PROFESSIONAL
AND CONSULTING SERVICES
was adopted by the following vote, to wit:
AYES; Directors Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Broomell
10. Audit Contract for Fiscal Year 2003-04:
Leaf & Cole, LLP submitted a proposal to perform the audit of the District’s financial statements for the year ending June 30, 2004 at a fee of $17,250. This fee is an increase of $350 over the prior year’s base fee. Director of Finance Jeffrey noted that the 2002-03 audit included a one-time fee of $2,500 for implementation of GASB 34. A written Management Letter in accordance with generally accepted
auditing standards will again be provided by Leaf & Cole. Adoption of Resolution No. 2004-11 to authorize Leaf & Cole, LLP to perform the financial audit of the District’s financial statements for Fiscal Year 2003-04 was recommended.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-11
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ENTERING INTO AN AGREEMENT WITH LEAF &
COLE, LLP TO AUDIT THE FINANCIAL STATEMENTS
OF THE DISTRICT FOR THE YEAR ENDED
JUNE 30, 2004
was adopted by the following vote, to wit:
AYES; Directors Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Broomell
11. Review of 30” Valve Installation Project:
Construction & Maintenance Supervisor Hoyle provided a slide presentation of the recent installation of a 30” valve on a District pipeline located off of Lilac Road. The District’s 30” pipeline does not have a sufficient number of valves to allow minimal service interruptions during a shutdown. The slide presentation illustrated the extensive work to complete the installation starting with pre-excavation of the site, preparation, shutdown, cutting of the pipe, welding for the flanges and valve, welding of the interior, recementing the interior liner and installing the 30” valve and gaskets.
GENERAL MANAGER’S AGENDA
12. Water Resources Specialist:
General Manager Arant requested and the Board concurred with the retention of Stan Sprague, who is a water resources strategy consultant. Mr. Sprague will provide updates on activities at the Metropolitan Water District on their subsidy programs including the agricultural water and groundwater recharge programs. Reports from Mr. Sprague will be coordinated with the work of the Southern California Agricultural Water Team.
13. Governance Issue at the
Sa
n Diego
County
Water
Authority:
At the San Diego County Water Authority’s Board meeting of March 25th, proposed changes in the voting structure of the Authority Board were opposed. Fourteen of the twenty-three member agencies of the Authority voted to support the governance change. However, the City of San Diego voted against the change and with the weighted vote, the measure did not pass. On April 19th, there is a meeting in Sacramento with Assembly Member Canciamilla, who is Chair of the Assembly Water Parks & Wildlife Committee, to discuss the governance issue.
GENERAL COUNSEL’S AGENDA
14. Appellate Court’s Ruling on the
Sa
n Diego
County Water Authority’s Lawsuit Challenging Metropolitan’s Preferential Rights:
General Counsel Cowett reported that the state appellate court ruled against the San Diego County Water Authority’s challenge of Metropolitan Water District of Southern California’s Preferential Rights provision in Metropolitan’s Act. The court did not find any ambiguity in the law. San Diego County Water Authority’s lawsuit challenges Metropolitan Water District’s preferential rights, which, if invoked, determines water rights during a drought. The method would use property values to decide how water is distributed. With this method, Los Angeles would have more rights to water than San Diego County though San Diego County purchases more water from Metropolitan. It was noted that Metropolitan has never implemented the preferential rights provision. The San Diego County Water Authority may appeal to the State Supreme Court.
BOARD OF DIRECTORS’ AGENDA
15. Support of
Carlsbad
’s Desalination Project:
Carlsbad City Council has voted to proceed with the Environmental Impact Report for Poseidon’s Carlsbad Desalination Plant at the Encina Power Station. A 50 million gallon per day drinking water desalination plant has been proposed through a partnership with Poseidon Resources. The San Diego County Water Authority following months of negotiations voted to suspend development negotiations with Poseidon Resources for the seawater desalination facility. It is felt that Carlsbad will need to secure an agreement with the San Diego County Water Authority for delivery of excess capacity that is generated at the desal. plant. Also, the Authority’s support of Carlsbad’s efforts to secure Metropolitan’s subsidy of $250.00 per ac. ft. for desalination water will continue to be sought.
The need to secure a commitment for the construction of Pipeline 6 is also considered vital for maintaining a secure water supply for the San Diego region through diversification.
Director Stone recommended and the Board concurred and directed staff to prepare a resolution supporting the City of Carlsbad’s desalination project at the Encina Power Station with Poseidon Resources and the construction of Pipeline 6.
ADJOURNMENT
16. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at
5:00 p.m.
to
Monday, April 26, 2004
beginning at
2:00 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary