January 7, 2002

Regular Board Meeting

Monday, January 7, 2002

Time: 2:00 P.M.

Place: Board Room

29300 Valley Center Rd.

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, Stone and Haskell. Staff

members present were: General Manager Arant, General Counsel Cowett, District Engineer

Jewell, Director of Finance Jarrell, Director of Operations Dacus, Manager of Accounting Jeffrey,

Pump & Motor Facilities Supervisor Stetson and Board Secretary Stetson. Spectator present was

Dave Ross, Valley Roadrunner Newspaper.

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2. Shadow Lake Road Water Main Replacement Project – Budget Adjustment:

District Engineer Jewell reviewed the location of the proposed Shadow Lake Road water main

noting the steep terrain. Plans and specifications for this water main (12") replacement

project were prepared by Dudek & Associates. Estimates for this project are as follows:

Engineer’s estimate $379,120 ($81.88 per foot)

Contingency (15%) 56,868

Inspection & Administration (10%) 37,912

Total $473,900

Funds had been budgeted for the Shadow Lake Road water main replacement project in the

Fiscal Year 1999-2000 budget of which $365,166 remains. Therefore, a budget adjustment

to allocate an additional $110,000 for this project was requested. It is proposed to advertise

the project for bids, with bids to be opened on February 6, 2002. The overage amount from

that budgeted for this project during the preparation of the FY 1999-2000 budget could be

attributed to more stringent requirements regarding erosion control, the need for meter

relocations and increases in required appurtenances.

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3. Award of Contract for the Betsworth Pump Station Natural Gas Engine Replacement, Nos. 1

and 2:

Board adoption of Resolution No. 2002-03 approving award of contract for the Betsworth

Pump Station Natural Gas Engine Replacement, Nos. 1 and 2, was requested. Pump, Motor

and Facilities Supervisor Stetson reported that three bids were received in which the lowest

was submitted by Watson Mechanical, Inc. at $574,200. Staff recommended award of

contract to this firm as Watson Mechanical, Inc. had been the contractor for the replacement

of the natural gas engines #3 and #4 at the Betsworth Pump Station and the work had been

completed satisfactorily. It was noted that the engines proposed to be replaced have been

in service at the District since 1969.

4. Approval of the Issuance of Purchase Orders for Replacement Vehicles:

Bids were opened on December 21

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5. Strategic Planning Process, Fiscal Years 2002-03 and 2003-04:

During the Strategic Planning process for Fiscal Years 2000-01 and 2001-02, organizational

values, performance measurement standards and ten specific goals had been identified.

General Manager Arant reviewed that of the ten adopted specific goals, six were completed

with four still in progress. The status of the four goals still in progress was reviewed as

follows:

Full Development of a Geographical Information System (GIS) - Development of the

system has been moving forward. A GIS System Master Plan will be developed in the

near future that will provide a status of completed segments and what is intended to be

accomplished.

SCADA System Approval and Installation - A pilot SCADA system will be installed in FY

2002-03 which will assist in determining the District’s SCADA system and its costs. This

data will be presented for the Board’s consideration in the FY 2003-04 budget.

Corporate Facility Master Plan - A corporate needs assessment and preliminary search

and evaluation of siting options were complete, however, further action was deferred

awaiting stability in the electrical industry. An evaluation of the District’s current site to

assess its adequacy to accommodate the needs of the District through 2020 was

proposed. If it is determined that the District’s future needs cannot be met at the current

site, pursuing a site for future development would be considered.

Lake Turner Recreational Use Options - Recreational use of Lake Turner by the

established youth organizations has been pursued. Funding sources for the initial

planning, environmental and permitting work are being sought. An application has been

made for a County of San Diego Community Block Development Grant and inquiries

have been made for funding from the San Diego Foundation.

The 2002-03 and 2003-04 Strategic Planning process will include review of the District’s

Mission Statement to ensure that it reflects the District’s current functions. Also, the

organizational values of: Customer satisfaction through quality service; Professionalism;

Reliability; Efficient use of resources; Leadership; Integrity and Friendliness will be examined,

along with the established performance measurement standards.

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Specific Goals proposed to be included in the 2002-03 & 2003-04 Strategic Plan are:

Comprehensive long-range financial plan and debt financing program - Establishment

of a long-range financial plan and debt financing program was proposed in anticipation

of an accelerated pipeline replacement capital improvement program as the District has

approximately 40 miles of tar wrapped steel pipe installed between 1955 and 1964 that

will likely require replacement in the near future. In addition, there are approximately

100 miles of cement mortar lined and coated steel pipe installed between 1965 and

1990 and about 8 miles of large diameter prestressed concrete cylinder pipe installed

from 1966 to 1976 that should be considered for replacement.

Vulnerability Assessment - EPA regulations to be released will mandate a

comprehensive assessment of our system’s vulnerability to biological attacks. Though

it is anticipated that much of the data collection and assessment will be done by staff,

the services of an outside consultant to provide expertise in the area of water system

security should be considered.

Organizational Structure Reevaluation - Evaluation of the organizational structure to

maintain a high degree of efficiency and effectiveness and to be prepared for changes

in service levels and employee staffing.

Input from the Board of Directors for the 2002-03 & 2003-04 Strategic Plan was requested.

Director Aleshire suggested and the Board concurred that the District’s Mission Statement

and the performance measurement standards should be reviewed. Further, information on

alternative programs for a GIS system will be provided for a comparison and analyzation for

implementation of a system that best meets the District’s needs in this area. The Energy

Resource Options Assessment underway will identify potential modifications to more

efficiently operate the District’s system; thereby providing water service at the lowest possible

cost. Capital costs for such modifications will need to be examined in relation to savings to

be realized. Director of Finance Jarrell stated that pursuant to the energy study, reports from

the consultants, Dr. Lon House and Boyle Engineering, are imminent and the data could be

utilized for development of the FY 2002-03 & 2003-04 Strategic Plan. A workshop for further

review and input from the Board on the Strategic Planning Process for Fiscal Years 2002-03

& 2003-04 will be held during a subsequent Board meeting.

6. ACWA-JPIA 2002 Executive Committee Election:

The ACWA-JPIA Executive Committee elections will be held during the ACWA Spring

Conference in Monterey on May 7, 2002. Elections will be for the office of President (3-year

term), and three Executive Committee positions; two for 3-year terms, and one for a 1-year

term to fill an unexpired term. ACWA-JPIA’s election process requires a nomination receive

concurrence from five member districts. The deadline for receiving the nominating and

concurring in nomination resolutions is March 25

6 1/7/2002

7. Review of Miscellaneous Informational Items:

Miscellaneous informational items were reviewed as follows:

~ Adopted Christmas Family -The District’s employees, through the Escondido Youth

Encounter (EYE), adopted a family for the Christmas holiday. Through this program, a

needy family in our area received gifts and a memorable Christmas through employees’

contributions of gifts and cash.

~ Statewide snow water equivalents compared to normal levels was reported on

December 28

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8. Reappointment of Director Broomell to the San Diego County Water Authority Board of

Directors:

President Broomell’s term of office as the District’s Representative on the San Diego County

Water Authority’s Board of Directors will expire on January 13, 2002. Adoption of Resolution

No. 2002-02 to reappoint or appoint the District’s Representative to the San Diego County

Water Authority’s Board to fill the term expiring January 13, 2008, was requested.

9. Provisions of the Proposed Ballot Measure “Water Security, Clean Drinking Water, Coastal

and Beach Protection Act of 2002:

The language contained within the proposed ballot measure that “No project financed

pursuant to this section shall include an on-stream surface water storage facility or an offstream

surface water storage facility other than percolation ponds for groundwater recharge

in urban areas” was questioned. The importance of promoting the need for additional surface

storage was discussed. Because the proposed ballot measure has not been finalized and

has not yet been approved to be on the ballot, a “wait” position was taken. Senator Costa has

expressed opposition to the proposed ballot measure.

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10. A Closed Session was called by President Broomell at 3:24 p.m. pursuant to:

• Government Code §54956.9(a), Conference with Legal Counsel - Existing Litigation.

Name of case: Sweetwater Authority, et al. v. Dynegy, Inc., et al.

Superior Court Case GIC 760743

• Government Code §54956.9(c), Conference with Legal Counsel - Anticipated Litigation.

Number of potential cases: 1

The Regular Board meeting was reconvened at 3:37 p.m. No action was reported.

11.