June 15, 2009
VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, June 15, 2009
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 Hoyle, District Engineer Grabbe, Board Secretary Stetson, Manager of IT Pilve, Manager of Accounting Pugh, and Consumer Services Supervisor Tilley. Spectator present was Mr. Dave Ross, Valley Roadrunner Newspaper.
CONSENT CALENDAR
1. Upon motion by Stone, seconded by Haskell and unanimously carried, the following consent calendar items were approved:
▪ Minutes of the Board meetings held May 26 and June 1, 2009
▪ Audit demands 122506 through 122656 and wire disbursements for May 2009
▪ Board of Director’s request for reimbursement of expenses and per diem compensation
▪ Treasurer’s Report and Financial Statements for the period ended April 30, 2009
PUBLIC HEARINGS
2. Public Hearing to Consider Approval of Resolution Adopting Revised Provisions of the Level 2 Water Supply Shortage Response Program:
The public hearing to receive input and consider adopting revised provisions of the District’s Water Supply Shortage Response Program was opened at 2:03 p.m. General Manager Arant reviewed that at the May 4th Board meeting the Board declared a Level 2, Water Supply Shortage Alert Condition, of the Water Supply Shortage Response Program with the exception of the provisions pertaining to new development/meter processing restrictions. Staff had been directed to evaluate and develop proposed revisions for water consumption and meter sales restrictions within Level 2 of the Water Supply Shortage Response Program, Article 230 of the District’s Administrative Code.
Staff recommended revising provisions within the Level 2, Water Supply Shortage Alert Condition, as follows:
• Meters without pre-existing allocations and meters sold during a Level 2 declaration be provided an allocation of 10 Hundred Cubic Feet (HCF) per equivalent ¾ inch meter per month.
• Allow development processing for individual lots, minor subdivisions and minor commercial developments requiring meter capacity of four or less equivalent ¾-inch meters.
• Major developments consisting of more than four lots or more than the equivalent of four ¾-inch meter demand would need to demonstrate no new net water demands for the project based upon a water conservation plan prepared by the applicant and approved by the District. Offset demands can be achieved through:
▪ Reallocation of an existing base year meter allocation,
▪ Development of on-site local potable and non-potable supplies that offset an existing or future demand for imported water, or
▪ Participation in a local or regional net demand offset program or specific project.
No written comments on the proposed revisions to the Water Supply Shortage Response Program were received and there were no comments from the public. 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. 2009-04
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF THE VALLEY CENTER MUNICIPAL WATER DISTRICT
APPROVING REVISIONS TO THE WATER SUPPLY
SHORTAGE RESPONSE PROGRAM, ARTICLE 230
OF THE DISTRICT’S ADMINISTRATIVE CODE
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
ACTION AGENDA
3. Resolution Reaffirming the Declaration of a Water Shortage Emergency Response Level 2 Condition and Implementation Plans:
The Board had declared Level 2, Water Supply Shortage Alert Condition, of the District’s Water Supply Shortage Response Program at its May 4th meeting. In addition, the Level 2 “Water Supply Shortage Alert Condition Implementation Plan” and the Special Agricultural Water Rate (SAWR) Water Supply Reduction Implementation Plan had been adopted. The action taken at the May 4th meeting had been by Minute Order rather than by adoption of the resolution that had been prepared due to the variance in the Board action pertaining to water meter sales.
Resolution No. 2009-17 was presented for Board adoption to reaffirm the Declaration of a Level 2 of the District’s Water Supply Shortage Response Program, Water Supply Shortage Alert Condition, and the approval of the implementation plans.
Upon motion by Polito, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-17
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
REAFFIRMING THE DECLARATION OF A WATER SHORTAGE
EMERGENCY RESPONSE LEVEL 2 CONDITION, THE
ADOPTION OF A LEVEL 2 “WATER SUPPLY SHORTAGE
ALERT” IMPLEMENTATION PLAN AND SAWR WATER
SUPPLY IMPLEMENTATION PLAN
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
4. Adoption of the Fiscal Year 2009-2010 Operations, Maintenance and Capital Budget:
The District’s proposed budget for Fiscal Year 2009-10 had been reviewed at the June 1, 2009, Board meeting. No substantive changes have been made to the budget since its review on June 1st, and staff recommended approval of Resolution No. 2009-25 to adopt the final Operating, Maintenance and Capital Budget for Fiscal Year 2009-10 and Ordinance Nos. 2009-05 and 2009-06 to incorporate the changes per the adopted Budget and Memorandum of Understanding with Employees in the District’s Administrative Code book.
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-25
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ADOPTING THE FINAL OPERATING AND CAPITAL
BUDGET FOR THE FISCAL YEAR 2009-10 AND
ESTABLISHING CONTROLS ON CHANGES IN
APPROPRIATIONS FOR THE VARIOUS FUNDS
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
Upon motion by Stone, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2009-05
ORDINANCE OF THE VALLEY CENTER MUNICIPAL
WATER DISTRICT AMENDING THE ADMINISTRATIVE
CODE TO PROVIDE FOR CHANGES IN AUTHORIZED
STAFFING LEVELS FOR THE FISCAL YEAR 2009-10 BUDGET
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
Upon motion by Stone, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2009-06
ORDINANCE OF THE VALLEY CENTER MUNICIPAL
WATER DISTRICT AMENDING THE ADMINISTRATIVE
CODE TO INCORPORATE CHANGES PER THE APPROVED
MEMORANDUM OF UNDERSTANDING WITH EMPLOYEES
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Welk Water Reclamation Facility Feasibility Study – Project Update and Agreement for Consulting Services:
The proposed Welk Water Reclamation Facility feasibility study had been approved for funding under the San Diego County Water Authority’s Local Investigation and Studies Assistance (LISA) grant program. Provisions for the grant include that the grant funds must be used for consulting fees while the District’s matching funds can include expenditures for District staff time. The goal of the study is to determine the feasibility of constructing an advanced wastewater treatment facility to produce recycled water to replace all or most of the potable water being used to supplement the groundwater used for irrigation of the Welk Golf Course. AECOM was selected to provide a proposal for professional hydrogeologic services for the feasibility study due to their familiarity with the project and being an “as needed” consultant for the District. The scope of work with an estimated, not to exceed without further authorization, fee of $100,000 is to:
1. Determine the viability of the existing groundwater wells and basin to provide the primary source of irrigation for the golf course, and
2. Determine if the groundwater basin can be used to balance the seasonal demand for supplemental water.
District Engineer Grabbe stated that the estimated cost for the proposed Welk Water Reclamation Facility is $3,300,000 with an annual operating cost of $200,000. Sources of income were reviewed which are:
Demand Offset Charge
Wastewater Capacity Charge
Sale of Recycled Water
Wastewater Service Charge
Local Resource Program
Local Water Supply Development Program
Findings from the preliminary groundwater study and groundwater model will determine if further investigation is warranted or if the project should be stopped.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2009-31
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
ENTERING INTO A PROFESSIONAL SERVICES AGREE-
MENT WITH AECOM FOR THE WELK RECLAMATION
FACILITY FEASIBILITY STUDY PROJECT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
GENERAL MANAGER’S AGENDA
6. Review of Miscellaneous Information Items:
▪ General Manager Arant reported that at the May 28th San Diego County Water Authority Board meeting, the agreement approved with Placer County Water Agency was for the transfer of up to 20,000 acre feet of water, not 10,000 ac. ft. as previously reported.
▪ A letter has been mailed to the representative of Accretive Capital Partners, Mr. Simon Malk, concerning ceasing their inaccurate statements regarding available capacity at the District’s Lower Moosa Canyon Water Reclamation facility to serve their proposed development. General Manager Arant explained that Accretive Capital Partners hosted an open house on June 10th at the Castle Creek Country Club to receive input on the proposed 3,000 home development located east of Old 395, south of West Lilac Road and north of Circle R Drive. The representatives of Accretive Capital asserted that the Moosa Reclamation plant was “underutilized” and that wastewater service was available for their proposed project which would be provided through the District’s Moosa facility. General Manager Arant clarified that the District has had no known contact with any representative from the Accretive Capital Partners regarding the ability to serve their proposed development. The letter to Mr. Malk requests that the representatives of Accretive Capital Partners refrain immediately from making inaccurate conclusions and public statements concerning wastewater service from the District’s Moosa facility and suggests that they contact the District to acquire factual information concerning obtaining water and wastewater service for the proposed development.
▪ A tour of the District’s facilities has been scheduled for Monday, July 6th beginning at 8:30 a.m. Sites to be visited are: Moosa Water Reclamation Facility, Lake Turner/Betsworth Pump Station solar system, Woods Valley Ranch Water Reclamation Facility, and corporate yard facility improvements including the SCADA control room. The Board meeting will be adjourned to July 6, 2009 at 8:30 a.m. for this tour.
▪ There are conflicting reports regarding the potential action by the Legislature to shift local property taxes to help offset the state’s budget deficit. Proposition 1A allows the state to borrow the property tax revenue from local districts, but it must be repaid. There are also reports that the Legislature will expand the cities’ redevelopment authority for the issuance of debt to facilitate the purchase of the state’s bonds.
DISTRICT GENERAL COUNSEL’S AGENDA
7. Status Reports on the Bay-Delta Conveyance Facilities’ Operational Permits and Carlsbad Desalination Project:
General Counsel Cowett reported that Steve Anderson of Best, Best & Krieger, who is representing the State Water Contractors on the Delta cases, provided an update. Regarding the Delta Smelt case, a biological opinion has been approved by Judge Wagner and a preliminary injunction has been filed. Hearings have been held on the preliminary injunction with respect to the biological opinion and the Fish & Wildlife Services were directed to consider the impact of the pumping operations on humans. The response to the Judge’s direction was a minimal modification to the pumping restriction. Fish & Wildlife Services asserted that they do not have much discretion to change the pumping allowance, which has been challenged. Fish & Wildlife has been directed to provide data to support their position. The biological opinion issued for the Salmon will greatly impact the Central Valley Project contractors as there will be an expansion of the pumping restriction period.
Pursuant to the Carlsbad Desalination Plant, a Superior Court hearing was held on the challenge to the State Lands Commission permit issued for this project, and the Judge stated after the hearing that she could not make a preliminary ruling at that time as it was too close to call. The ruling was postponed and both parties have been directed to prepare proposed rulings. The issue that had been before the State Lands Commission was a modification in the lease between Poseidon and the power company. The challenge before the judge is that a subsequent EIR for the Carlsbad Desalination Plant should have been prepared before the State Lands Commission considered the modification of the lease between Poseidon and the power company.
An issue being considered is whether Poseidon Resources should have prepared a subsequent EIR upon learning that the power plant may be removed. However, operational plans for the desalination plant include a back-up in the event that the power plant does not remain at the site. An appeal has been filed with the State Board regarding the San Diego Regional Water Quality Control Board’s approval of a permit for the desalination plant.
BOARD OF DIRECTOR’S AGENDA
8. Report on the Bay-Delta Tour:
Director Stone reported that he had taken the Bay-Delta tour sponsored by the Water Education Foundation and California Department of Water Resources from June 10th to June 12th. He reported that the tour was very thorough, well-planned and executed. The tour of the Sacramento-San Joaquin Delta and San Francisco Bay included visiting several facilities, including the Delta Cross Channel, C.W. Jones Pumping Plant, a Bay-Delta model in Sausalito, Contra Costa Water District facilities, and Suisun Marsh. It is felt that due to the complexity of the Bay-Delta’s water system, a solution for the state’s water system will be extremely difficult with the disparate views and also the lack of leadership needed in the State government.
CLOSED SESSION
9. A Closed Session was called by President Broomell at 3:40 p.m. pursuant to:
● Government Code §54956.8 – Real Property Transaction, Conference
with Negotiator
Property: 9539 Sage Hill Way, Escondido, CA
Agency Negotiator: Gary T. Arant, General Manager
Negotiating Party: Crown Castle International Corporation
Under Negotiation: Terms of Lease
● Government Code §54956.8 – Real Property Transaction, Conference
with Negotiator
Property: Fawn Creek Lane, Escondido
(APN 187-350-16)
Agency Negotiator: Gary T. Arant, General Manager and
Wally Grabbe, District Engineer
Negotiating Party: Jane Wiggans, Wiggans Group, Inc.
Under Negotiation: Price
● Government Code §54957(b)(1) – Public Employee Performance Evaluation: General Manager, and
● Government Code §54957.6 – Conference with Labor Negotiator,
Unrepresented Employee: General Manager
RECONVENE
10. The Regular Board meeting was reconvened at 4:50 p.m. There was no reportable action.
ADJOURNMENT
11. The Board meeting was unanimously adjourned at 4:51 p.m. to Monday, July 6, 2009, at 8:30 a.m.
ATTEST: ATTEST:
___________________________ ___________________________
President Secretary