VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, September 18, 2006
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, Director of Finance Jeffrey, District Engineer Grabbe, Director of Operations Hoyle, Board Secretary Stetson, IT Specialist Rivard, and Project Managers Kilwein and Williams. Spectators present were: Mr. David Ross and Mr. Gary Wynn.
CONSENT CALENDAR
1. Upon motion by Stone, seconded by Haskell and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held September 5 , 2006
• Concept approval of the Lizard Rocks waterline extension project consisting of approximately 275 linear feet of 8-inch water main and other appurtenances
• Concept approval of the Castle Creek condominiums (TM 5514) water and sewer main extension project consisting of approximately 2,800 feet of wastewater collection facilities, 2,900 feet of water main, two pressure reducing stations, five fire hydrants and other appurtenances
• Report of professional and consulting agreements and contracts for Fiscal Year 2005-06
• Resolution No. 2006-42 declaring intent to reimburse expenditures for relocation of water facilities in Valley Center Road from proceeds of indebtedness
• Purchase Order No. 16640 in the amount of $124,822.79 to Rancho Ford and Purchase Order No. 16641 in the amount of $58,679.97 to Quality Chevrolet for the purchase of a total of seven trucks as approved in the budget
• Audit demand check numbers 110182 through 110354
• Treasurer’s Report and Financial Statement for the period ended July 31, 2006
• Board of Director’s request for reimbursement of expenses and per diem compensation
ACTION AGENDA
2. Status Report on the
South
Village
Water Reclamation Project:
At the Board meeting of September 5, 2006, the Bell/Alti/Olson Group private project to expand the Woods Valley Ranch Water Reclamation facility had been approved and staff was directed to continue to work with property owners in the South Village planning area to determine the feasibility of a wastewater expansion project for interested property owners which potentially could be merged with the Bell/Alti/Olson private expansion project.
Dianne Kilwein, Project Manager, reviewed the proposed time schedule to define the public project track of the South Village water reclamation expansion project as outlined below:
September 29, 2006 Notification letter, Project Status Report
and Capacity Reservation Agreement (which
are attached hereto as Exhibit “A”) mailed
to property owners in the South Village
Study Area
October 11, 2006 Informational meeting at District’s office
for interested property owners
November 17, 2006 Deadline for receipt of Capacity Reservation
Agreements which is the financial commitment
of $2,500 per EDU from interested participants
December 18, 2006 Report to the Board on the response from
property owners and determination of
project feasibility
Project Manager Kilwein reported that a minimum number of EDUs for a feasible sewer expansion project for properties in the South Village area has been tentatively set at 150, which would result in a 75,000 gpd expansion increment when combined with the Bell/Alti/Olson expansion project. If it is determined that there is not a sufficient level of interest to proceed further with the proposed public project track of the wastewater expansion project, it is likely that the project will be terminated and await adoption of the GP 2020 Update to consider a future expansion effort. As defined in the Capacity Reservation Agreement, the $2,500/EDU deposit is at risk wherein if the project does not go forward, funds expended will be forfeited. Staff clarified that the maximum number of EDUs that will be allowed will be determined by the current zoning on the property. Further, it may be determined that service to some properties will not be economically feasible.
The public project track of the South Village water reclamation expansion project will consist of an expansion at the Woods Valley Ranch Water Reclamation Plant, a collection system, wet weather storage facility and disposal area.
Property owners within the South Village study area interested in participating in the proposed wastewater expansion project will be provided a spreadsheet detailing the parcels’ maximum allowable EDUs per current zoning along with the maximum number of EDUs that will be allowed under the GP 2020 Update as currently proposed. Staff reiterated that the maximum number of EDUs that will be allowed under the proposed current wastewater expansion project will be determined by the current zoning on the property. It will be the responsibility of the property owners to determine the number of EDUs needed for their property. However, developed properties within the South Village area will be required to purchase the appropriate number of EDUs that is commensurate with the property’s existing usage (i.e. sewer capacity sufficient to support a particular business). An exchange bank to provide capacity commitments when available from a property owner that over purchased sewer capacity will be established for purchase from a property owner wanting additional capacity.
President Broomell commented that in conjunction with the Valley Center Road improvement project and replacement of the water lines the sewer lines should be installed. General Manager Arant stated that perpendicular utility sleeve crossings have been secured across Valley Center Road that will facilitate future development in the area requesting wastewater service. Environmental regulations will not allow the District’s installation of sewer lines for future use.
Mr. Gary Wynn addressed the Board inquiring as to sewer service for his commercial building in which it was clarified that as part of the wastewater expansion project as proposed, he would be eligible to purchase the number of EDUs per the current zoning on his property. Mr. Wynn expressed that many property owners in the South Village area desire wastewater service that will serve their zoning as proposed under the GP 2020 Update. He noted that the County Department of Planning and Land Use is not accepting general plan amendment projects based on current zoning and is only processing plans that are GP 2020 compliant. General Manager Arant clarified that an option that had been considered concerning a wastewater expansion project for the South Village was to move forward with the CEQA processes and preliminary design, but wait until GP 2020 EIR is approved to finalize CEQA findings for the wastewater expansion project and the design of the facilities. With this option, the participating property owners would have a higher degree of certainty as to land use designations for their respective properties. Another option considered had been to pursue the wastewater expansion project for the South Village area with demands based on current land use zoning, but the project’s EIR later amended to reflect densities of GP 2020 upon its adoption by the County. Under this option, oversubscription or under subscription of capacity could be addressed through the
EDU bank. However, in response to property owners requests to move forward without the delay of awaiting adoption of GP 2020, the wastewater expansion project to serve South Village properties is being pursued utilizing properties’ current land-use zoning.
Staff will continue to refine the information package to be mailed to the South Village area property owners incorporating the changes to clarify that the wastewater capacity reservation of $2,500 per EDU is an initial deposit as additional funds may be required to complete the initial planning, environmental and preliminary design phases, and that current wastewater service costs in the Woods Valley Ranch development are approximately $100.00 per month per EDU. The information package will be mailed by September 29th with the information meeting with property owners to be conducted October 11, 2006.
3. Award of Contract for the Merry Ferry and East Miller PRV Station Upgrade Project:
Project Manager Williams reported that bids for the Merry Ferry and East Miller PRV Station Upgrade Project were opened on September 6th in which the lowest bid was submitted by Cora Constructors, Inc. at $218,000. Award of contract for this project to Cora constructors, Inc. was recommended. Staff noted that Cora Constructors has demonstrated its ability to perform the work in an acceptable manner.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2006-41
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AWARDING CONTRACT FOR THE MERRY FERRY
AND EAST MILLER PRV STATION UPGRADE PROJECT
AND MAKING A DECLARATION OF OFFICIAL INTENT
TO REIMBURSE EXPENDITURES FROM PROCEEDS
OF INDEBTEDNESS
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
4. Request for Approval of Cumulative Change Order Nos. 5 and 6 for the Meadows Reservoir No. 2 Construction Contract:
Project Manager Williams reported that construction of the Meadows Reservoir No. 2 is nearly complete with only minor remedial “punch list” items remaining. The scope of work for this project had been modified to address unknown geotechnical conditions, upgrade the proposed electrical panel, provide third party x-ray inspection services and to modify the on-site piping. These changes had been approved by the Board (Change Order Nos. 1 through 4) on March 21, 2005 and July 5, 2005 which amounted to $120,334.67.
Per the District’s Administrative Code, cumulative change orders in excess of $35,000 require approval by the Board. Change Order No. 5 to the Meadows Reservoir No. 2 construction contract was negotiated at $32,798.79 to complete internal caulking, add pavement, 6-feet of piping, SCADA conduits, a new gate and electrical changes. Change Order No. 6 to the construction project to revise the on-site water distribution piping and security fence is in the amount of $2,870.33. Change Order No. 6 coupled with the previously approved Change Order No. 5 totals $35,669.12, and requires Board approval as the cumulative amount exceeds $35,000.
Upon motion by Aleshire, seconded by Stone and unanimously carried, Change Order Nos. 5 and 6 to the Meadows Reservoir No. 2 construction contract in the amount of $35,669.12 were approved.
5. Request for Change Order No. 1 for the Mountain Meadows #1 Reservoir Repainting Project:
J. Colon Coatings, Inc. is under contract to repaint the exterior and interior of Mountain Meadows Reservoir No. 1. Director of Operations Hoyle reported that it was discovered during sandblasting of the reservoir that there is a vinyl epoxy coating under the Super Tank coating on the top rings and the roof. There would be no guarantee of the painting work if the vinyl epoxy coating was overcoated, and it was recommended to completely remove the existing vinyl coating.
In order to remove the vinyl epoxy coating, special equipment will be used with the removal process taking 15 extra days. J. Colon Coatings has submitted a change order request in the amount of $59,700. Staff noted that the Mountain Meadows Reservoir No. 1 should be back in service prior to the scheduled aqueduct shutdown in late November 2006.
Upon motion by Aleshire, seconded by Polito and unanimously carried, Change Order No. 1 for the Mountain Meadows Reservoir No. 1 Repainting Project in the amount of $59,700 was approved.
GENERAL MANAGER’S AGENDA
6. Review of Miscellaneous Informational Items:
• The District’s Status Report for August 2006 was reviewed. Total water meter accounts including fire meters is at 10,226. Under Metropolitan’s Certified Agricultural Water Management Program, the District’s agricultural customers have realized a discount totaling $52.3 million since its inception in 1994
• An Ad Hoc Subcommittee for evaluation of the water and sewer service provider for the San Luis Rey area has been formed by the San Luis Rey Municipal Water District. This subcommittee will meet with representatives of the Rainbow Municipal Water District and the District. Appointment of Ad Hoc Subcommittee members from both Rainbow M.W.D. and the District to meet with the Subcommittee members of the San Luis Rey M.W.D. has been requested. An Ad Hoc Subcommittee will be appointed by President Broomell.
• General Manager Arant informed the Board that a request for a ruling by the Attorney General has been submitted concerning member agencies’ staff members serving on the Board of the San Diego County Water Authority and if that is in violation of the incompatible offices rule.
GENERAL COUNSEL’S AGENDA
7. Legislation Affecting Design Professional Agreements:
General Counsel de Sousa reported that legislation adopted by the Legislature and awaiting the Governor’s action will, if adopted, change the manner in which design consultants will indemnify the District. Currently, in contracts between public agencies and design professionals, public agencies have required that the consultant indemnify the District from claims except for those caused by the District’s wrong doing. AB 573 will result in there being a mutual indemnification in contracts between public agencies and design professionals.
BOARD OF DIRECTORS’ AGENDA
8.
ACWA
State
Legislative Committee:
Director Aleshire reported that there is a vacancy on the ACWA State Legislative Committee which currently is largely comprised of attorneys. This committee reviews all state legislative proposals affecting member agencies and establishes ACWA’s positions on state legislation. Director Aleshire stated he had volunteered to find a member to fill the vacancy. Keith Lewinger, General Manager of the Fallbrook Public Utility District, has agreed to serve on the committee, if appointed by ACWA’s President. If his appointment is approved, Region 10 of ACWA will be represented on the Legislative Committee.
ADJOURNMENT
9. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at
3:50 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary