VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, July 21, 2003
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 Vice President Polito at 2:00 P.M.
ROLL CALL
Board members present were: Directors Polito, Aleshire, Haskell and Stone. Director Broomell was absent. Staff members present were: General Manager Arant, General Counsel Cowett, District Engineer Jewell, Director of Operations Dacus, Director of Finance Jeffrey, Project Engineer Grabbe, and Board Secretary Stetson. Spectators present were: Messrs. Meyer, Stewart, Dorman, Bunts and others.
APPROVAL OF AGENDA
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the agenda was reordered to consider the request to modify the Water Reclamation Facilities Agreement for the Woods Valley Ranch (agenda item #12) to the first item under the Action Agenda.
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 July 7, 2003
• Concept approval of the Saiki water line extension project consisting of approximately 2,440 feet of 8-inch water main, two 6-inch fire hydrants,
four 1-inch water services and other required appurtenances
• Quitclaim of Easement to Johnston (APN 129-350-40)
• Audit demand check numbers 94742 through 94933
• Treasurer’s Report for the period ended June 30, 2003
ACTION AGENDA
2. Proposed Modifications to the Woods Valley Ranch Water Reclamation Facilities Agreement:
Newland Communities’ (Woods Valley Ranch) proposal for modification of the Water Reclamation Facilities Agreement for the Woods Valley Ranch Water Reclamation Facility that will allow the developer more interim sewer permits prior to completion of the permanent treatment facilities was presented for the Board’s consideration. This action will facilitate the additional time needed by the developer to modify the Major Use Permit to provide a facility that can be more efficiently expanded. Staff clarified that at no point does the revised schedule allow for more interim sewer permits to be issued than can be supported by the treatment facilities constructed or the regulatory approvals that have been secured.
Proposed modifications to the treatment facilities include:
• Interim 1 – 10,000 gallon holding tank (no change)
• Interim 2 – Additional 10,000 gallon holding tank capacity and 50,000 GPD
package treatment plant
Proposed modifications to the Woods Valley Ranch Water Reclamation Facility will facilitate potential future expansion of the plant to provide sewer service to customers in the vicinity of the Woods Valley Ranch Water Reclamation Facility. Newland Communities’ modification of the Major Use Permit for the water reclamation facilities will allow for an efficient expansion of the plant. The proposed modifications will permit expansion of the treatment capacity up to 225,000 GPD. Providing for a more efficient expansion of the treatment plant will accommodate the flow capacity of surrounding properties such as Orchard Run development, Southern Node properties, Bell Enterprises and Alti Corporation properties and further satisfies the county’s I-78 waiver requirements for the Woods Valley Ranch development. The proposed revised agreement with Newland Communities for the Woods Valley Ranch Development’s Water Reclamation Facilities’ permitted EDUs (70,000 GPD) was reviewed and is attached hereto as Exhibit “A”.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2003-29
RESOLUTION OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING THE WATER RECLAMATION FACILITIES
AGREEMENT FOR THE
WOODS
VALLEY
RANCH DEVELOPMENT
was adopted by the following vote, to wit:
AYES: Directors Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Broomell
3. STEP Sewer System, Review of Pressure Sewer Maintenance Fee:
At the June 16th Board meeting, the pressure sewer maintenance fee collected for the septic tank effluent pump (STEP) systems for the Rimrock development properties was increased by the CIP or to $30.00 per month per EDU. Staff had been directed to analyze costs incurred for maintenance of the Rimrock development’s STEP systems to determine if expenses are being recovered and an appropriate fee schedule.
Actual expenses incurred for maintenance of the STEP systems and revenue collected from the Pressure Sewer Maintenance fee since Fiscal Year 2000-2001 were as follows:
Actual Expenses Revenue Net Loss/Gain
2000-01 $26,782 $7,048 -$19,734
2001-02 8,635 9,498 +863
2002-03 11,300 12,052 +752
Projected expenses and revenue for Fiscal Year 2003-04 are $11,300 and $12,200, respectively, for an anticipated net gain of $900. The net loss incurred in Fiscal Year 2000-01 for maintenance of the Rimrock STEP system can be attributed to expenses associated with retrofitting the system’s controls and pumps with the units that have proven to be more effective for the STEP system and the lower maintenance fee that was assessed. Budgeted expenses have been higher than actual expenses as the budget figure would provide sufficient funding in the event that 3 units in one fiscal year have to be replaced.
Staff projected that with the current pressure sewer maintenance charge adjusted periodically coupled with the new homes under construction within the Rimrock Development that will connect to the system and increase the sewer maintenance revenue, the revenue gain realized compared to actual expenses will eventually offset the loss experienced in the past and result in funding a reserve.
Alternatives for the Rimrock Pressure Sewer Maintenance Fee for the Board’s consideration included:
▪ Maintaining the Status Quo of monitoring costs and implementing maintenance STEP charge adjustments, as appropriate.
▪ Increase the STEP maintenance charge at a more rapid rate in which a reserve could be accumulated to offset the year to year variable costs. Such an increase could be $2.00 or $3.00 per year.
▪ Increase the STEP Maintenance Charges to cover the annual budgeted amount or a 77% increase to $53.00 per unit. This could result in an accumulation of reserves and repayment of prior fund deficits as actual expenses have been contained with the improved units installed in the Rimrock STEP systems. It was reiterated that the budgeted amount would fund expenses incurred in the event that a higher than average number of pump units require replacement.
Staff recommended that the STEP maintenance fees continue to be increased at the rate of inflation plus an additional amount of $2.00 or $3.00 per unit to accumulate reserves that will fund an occurrence of multiple pump units needing replacement. Further, funding for maintenance of STEP systems in any future developments will be secured through the formation of a sewer fee assessment district.
Staff was directed to present to the Board, in approximately December 2003, a summary of the Fiscal Year 2003-04 STEP system maintenance revenue and expenses at which time an adjustment in the Rimrock STEP system maintenance fee will be considered.
4. Fiscal Year 2002-03 Year End Status Report of the Strategic Plan Specific Goals and Budget Objectives:
The Fiscal Year 2002-03 year-end status report of the 2002-2003 and 2003-2004 Strategic Plan Specific Goals and 2002-2003 Budget Objectives was reviewed which reported that of the 70 specific goals, objectives, issues and projects, 42 have been completed or deferred, with 17 underway or nearly complete with completion expected in FY 2003-2004. These 59 projects represent 84.3% of all active objectives and 89.4% of all objectives which are controlled by the District. The remaining 11 projects and programs are under the control of an outside agency or party (4), and are long-term, ongoing and/or multi-year projects (7).
5. Customer Comment Card Program, Report for Fiscal Year 2002-2003:
General Manager Arant reported that in Fiscal Year 2002-03, a random mailing of 180 comment cards to customers who had had some form of service contact with the District was completed. Forty-two cards were returned in which, within the five service rating categories, 151 responses were rated “exceeded expectations”, 53 were rated “met expectations” and 2 responses were “did not meet expectations”. The 2 “did not meet expectations” ratings were associated with one situation in which a customer requested a locking meter box due to vandalism, however, it was not immediately available but was special ordered for the customer. All customers who return a comment card that is signed receive a letter of appreciation from the District for their participation and input in the District’s customer comment card program.
6. Resolution Nominating Director Merle Aleshire for the Position of ACWA Region 10 Board Member:
Upon motion by Stone, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2003-28
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VALLEY CENTER MUNICIPAL WATER DISTRICT
PLACING INTO NOMINATION DR. MERLE J. ALESHIRE, PH.D.
AS A MEMBER OF THE ASSOCIATION OF
CALIFORNIA
WATER AGENCIES REGION 10, BOARD MEMBER
AYES: Directors Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Broomell
7. Skyline Ranch Wastewater Treatment Plant Replacement Project – Request for Concept Approval for Tertiary Treatment and Irrigation on the Golf Course:
A status report on the Skyline Ranch Wastewater Treatment Plant replacement project was provided by Project Engineer Grabbe. He reviewed that the treatment plant was constructed in 1973 to serve the Skyline Ranch Country Club consisting of approximately 220 homes and an 18-hole golf course. Approximately 22,300 gpd is processed at the treatment plant which is operated by the District per an agreement with the Skyline Ranch Country Club. Due to the age of the plant’s facilities and its inefficiencies, design of a replacement treatment facility has been pursued by Skyline Ranch.
Skyline Ranch Country Club is proposing, as part of the treatment plant replacement project, to add advanced treatment (tertiary treatment) to the new Skyline Ranch Wastewater Treatment Plant and using the treated effluent on their golf course. Concept approval by the Board of this proposal was requested. Upon completion of these proposed new treatment facilities and golf course irrigation system, the lower storage pond and effluent spray field will no longer be needed. The deed conveying the property to the District for the storage pond and spray field provides for the property to be reverted back to the Skyline Ranch Country Club if the property is not needed for effluent disposal.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the addition of tertiary treatment at the Skyline Ranch Wastewater Treatment Plant and using the treated effluent on the Skyline Ranch Golf Course was granted concept approval and preparation of a District Facilities Agreement with the Skyline Ranch Country Club was approved that will subsequently be presented for Board approval.
GENERAL MANAGER’S AGENDA
8. Review of Miscellaneous Informational Items:
• Sacramento-Suburban Water District Misuse of Public Funds – General Manager Arant reported that the Sacramento Bee has had several articles on the misuse of funds by members of the Sacramento-Suburban Water District Board and its management staff. A long-term practice of overcharging for travel expenses and taking cash payments without Board approval or reporting such payments to the Internal Revenue Service have been documented. It is estimated that an estimated $1.0 million was misappropriated over a 10 to 15 year period. The Sacramento Bee has requested public records of other water agencies in California including the San Diego County Water Authority and the Helix Water District. The Association of California Water Agencies has appointed a special task force to develop model guidelines for Board compensation and expenses that will be considered by the ACWA membership.
• Forum on Water Supply Reliability – The Economic Study Group hosted a “Forum on Water Supply Reliability” on July 17th in San Marcos in which Ron Gastelum, CEO of the Metropolitan Water District of Southern California, and Debra Man, Vice President of Metropolitan’s Water Transfer Exchanges, were present. Discussed were Metropolitan’s 2003 “Report on Metropolitan’s Water Supplies” and the status of the Quantification Settlement Agreement. San Diego County Water Authority’s concerns pertaining to Metropolitan’s report on its water supplies were addressed in which Mr. Gastelum stated that Metropolitan is 100 percent confident regarding its water resources supply reliability noting that the recent completion of Diamond Valley Lake and the planned lining of the All American and Coachella canals have or will add hundreds of thousands of acre feet to its water supply. In addition, Metropolitan has 53 water recycling projects, 22 groundwater recovery areas and 5 desalination projects that are either operating or nearly complete and will conserve 800,000 acre feet of water.
CLOSED SESSION
9. A Closed Session was called by Vice President Polito at 4:00 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.
San Diego Superior Court Case GIC 760743
$ Government Code '54956.9(a), Conference with Legal Counsel - Existing Litigation.
Name of Case: Rincon del Diablo Municipal Water District, et al. v. San Diego County Water Authority, et al.
San Diego County Superior Court Case No. GIC798230
$ Government Code '54956.9(a), Conference with Legal Counsel - Existing Litigation.
Name of Case: Cougar Pass Coalition v. John Braman, et al.
San Diego County Superior Court Case No. GIN028464
$ Government Code §54957, Public Employee Performance Evaluation – General Manager and Government Code '54957.6, Conference with Labor Negotiators – Unrepresented Employee, General Manager
10. The Regular Board meeting was reconvened at 4:20 p.m., and the following action was reported:
Pursuant to General Manager Arant’s performance evaluation, the following was unanimously approved by the Board:
The General Manager’s salary shall be increased to $150,000 annually effective with the pay period nearest to
July 1, 2003
;
General Manager was awarded a one-time merit bonus of $5,000 to be effective with the following pay period; and
Effective with the next pay period, the General Manager’s car allowance of $7,200 annually shall be reported as regular income for PERS reporting but for other purposes salary is reported at $150,000 with an in-lieu of car allowance of $7,200 annually.
ADJOURNMENT
11. Upon motion by Aleshire, seconded by Stone and unanimously carried, the meeting was adjourned at 4:21 p.m.
ATTEST: ATTEST:
____________________________ ___________________________
President Secretary