VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, October 6, 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 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, District Engineer Jewell, Director of Operations Dacus, Director of Finance Jeffrey, Water Facilities Supervisor Stetson, Project Engineer Grabbe and Board Secretary Stetson. Spectators present were Mr. Cummings and Mr. Ross, Valley Roadrunner Newspaper.
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 September 15, 2003
• Annual report of properties approved for deferral of water availability charges per Administrative Code Section 165.2(d)(3)
• Grant of easement to San Diego Gas & Electric Company over a portion of the District’s Ridge Ranch Reservoir property for ingress, egress and underground electric facilities
• Audit demand check numbers 95689 through 95994
• Treasurer’s Report for the period ended August 31, 2003
ACTION AGENDA
2. Request for Waiver of Dedicated Meter for a Residential Fire Sprinkler System:
District Engineer Jewell explained that a request was received from Mr. Cummings for a waiver of the requirement to purchase a second meter to serve his residential fire sprinkler system. Mr. Cummings states that he had inquired as to meter requirements in January of 2003 for construction of his home on property served by a ¾” meter. Mr. Cummings has stated that it is his understanding that there were two options available; either upsize the existing meter, or install a second dedicated fire services meter. Mr. Cummings then proceeded to install a single water line from the meter location into his home with the intention of upsizing his meter to a 1-inch upon completion of the home’s construction. Installation of a fire service meter and the second line to the home would require extensive construction work in the driveway and wall of the home. Mr. Cummings requested that the Board approve a waiver of the requirement for a second dedicated meter for his residential fire sprinkler system and that he will upsize his existing meter to a 1-inch size to satisfy fire flow requirements.
District Engineer Jewell explained that the District was developing its policy regarding satisfying fire sprinkler system fire flow requirements in December 2002 and January 2003 evaluating options including requiring a larger domestic/fire service meter as well as separate domestic and fire service meters. As such, there may have been a misunderstanding of the District’s policy concerning meter service requirements for a residential fire sprinkler system as the District’s policy requiring a separate dedicated meter for residential fire sprinkler systems had been adopted on January 6, 2003. Staff noted that the dual meter policy adopted for residential fire sprinkler systems is less expensive than the purchase of one residential meter sized to provide sufficient pressure for domestic and fire sprinkler system flows as had been discussed upon adoption of the policy. The cost savings is largely due to the waiver of the meter capacity charges for the dedicated fire service meter and the reduced costs associated with a smaller domestic meter. Further, the monthly meter service charge for the dedicated fire sprinkler system meter is reduced to 55% of this charge for the equivalent sized standard meter. A separate fire service meter with the domestic water meter enables maintenance of fire flow to a residence if service is discontinued to the domestic meter.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, a variance of the District’s policy requiring the purchase of a separate dedicated meter for residential fire sprinkler systems was granted Mr. Cummings for his property located at 14451 Tyler Lane due to the misunderstanding regarding the District’s policy on this matter. Such variance was granted contingent upon execution of a waiver.
3. Award of Contract for the
Valley
Center
Pump Station Natural Gas Engine Replacement No. 4:
Bids for the Valley Center Pump Station Natural Gas Engine Replacement #4 were opened on September 10th in which the low bid was received from Denboer Engineering & Construction, Inc. at $353,000. Water Facilities Supervisor Stetson recommended award of contract to Denboer Engineering noting that this firm has completed work for the District (MJM Pipeline, Pump Station and PRV Project) in accordance with the District’s specifications and in a workmanship manner. Budget estimate for this project had been $325,000, therefore, an adjustment of the 2003-04 budget to appropriate $28,000 additional funds was requested.
As part of the District’s energy efficiency program, several gas engines and motors have been replaced with more efficient units. Water Facilities Supervisor Stetson reported that replacement of pumps at Oat Hill Pump Station saved $18,000 in energy expenses from the previous year with an additional 200 acre feet pumped.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2003-33
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT AMEND-
ING THE 2003-04 BUDGET BY APPROPRIATING AN
ADDITIONAL $28,000 INTO ACCOUNT #01-5679.78 AND
AWARDING CONTRACT FOR VALLEY CENTER PUMP
STATION NATURAL GAS ENGINE REPLACEMENT #4
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
4. Communications Site License Agreement with AT&T Wireless for Use of a Portion of the District’s Rincon Reservoir Site:
A proposed communications site license agreement with AT&T Wireless PCS, LLC, to use approximately 225 feet of the District’s Rincon Reservoir site was presented for Board consideration. Equipment proposed to be constructed on the site include a 32 foot antenna support structure, replacement of an existing 20 foot light standard with a 32 foot light standard with antenna structure attached and radio transmitting and receiving equipment.
The agreement is for an initial term of five years with an extension provision. Annual rent begins at $18,000 per year for the first four years and increases to $21,000 in the fifth year with total revenue in the initial five year term expected to be $93,000.
Upon motion by Polito, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2003-34
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT APPROV-
ING A SITE LICENSE AGREEMENT BETWEEN THE DISTRICT
AND ATT&T WIRELESS PCS, LCC AT RINCON RESERVOIR
AND AUTHORIZING THE GENERAL MANAGER TO SIGN
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Process Evaluation Project:
An evaluation of activities or processes that involve a significant amount of staff time and organizational effort will be undertaken by staff as had been approved by the Board. General Manager Arant proposed that the following processes be analyzed by staff to determine if there may be a more cost effective method to accomplish the task while maintaining a high degree of responsiveness and customer service.
• Capital Project Design Process (Engineering Department). Re-examination of how capital projects are designed.
• Meter Service Installations (Field Department). Examine alternative methods and technologies for completing meter installations.
• Automated Cash Receipt Processing (Finance Department). Evaluation of alternative methods and technologies to automate the processing of cash.
• Employee Recruitment, Interviewing and Background Investigations (General Administration). Review the current process for potential efficiency improvements without reducing effectiveness.
• Customer Service Scheduling (Joint Project). Scheduling method to be analyzed.
• Meter Reading (Joint Project). Evaluation of meter reading cycle and the advantages/disadvantages of changing from monthly billing for all or designated accounts.
• New Meter Application Process (Joint Projects). Evaluation of this administrative process for efficiency.
All of these processes will be evaluated for potential efficiency improvements with consideration of maintaining a high degree of customer service.
6. Financing Plan and Water Rate Changes:
Director of Finance Jeffrey provided an update on the following:
Capital Financing Plan. The Strategic Plan Goal to develop a comprehensive long-range capital financial plan had been deferred due to conditions potentially affecting revenue structures that included the Mexican Fruit Fly quarantine, Exotic Newcastle disease and the state’s budget deficit. However, completion of a financial model for the District was pursued which has been received and is being reviewed by staff. Said financial model will be presented to the Board in November.
Water Rate Changes. Increases in the water rates from Metropolitan Water District and the San Diego County Water Authority will become effective January 1, 2004. A pass through of these rate increases, with an increase for inflation in the local component of the water rate for a total rate increase of approximately 4.5%, will be recommended.
Moosa Promissory Note. A note secured to fund a portion of the Moosa sewer expansion project in the amount of $1.5 million will be due December 28th. Rather than incurring costs related to issuing debt, staff will be recommending applying sewer capacity charge revenue of approximately $500,000 against this debt, and the remaining funds of approximately $1 million to be borrowed from the District’s General Fund. Interest from this loan to the General Fund would be at the average interest rate of the District’s investments. Staff noted that planned development will result in the collection of nearly $1 million from sewer capacity charges for connection to the Lower Moosa Water Reclamation Plant.
GENERAL MANAGER’S AGENDA
7. Legislative Audit Committee:
Per a request by Assemblymember Cohn, the Joint Legislative Audit Committee has requested the Bureau of State Audits to audit independent special water districts. Assemblymember Cohn had initiated the request citing her concern that water districts operate without much public scrutiny or oversight of their operations. The State Auditor has indicated a sample of five independent special water districts will be chosen for an audit. Mr. Reeb, State Legislative Director of the Association of California Water Agencies, forwarded a letter to the District proposing that ACWA recommend the District be an agency selected by the State Auditor for an audit stating that “…your district is representative of ACWA members that have an excellent reputation among the special district community, and due to your size and geographical location, we would like to suggest your district to the State Auditor.” The District’s name was not included in the list submitted by ACWA to the State Auditor, however, the district would be responsive to such an audit, if selected.
GENERAL COUNSEL’S AGENDA
8. ACWA Workshop:
General Counsel Cowett responded to concerns among ACWA members regarding the State Budget crisis and securement of funds invested in the Local Agency Investment Fund (LAIF). Mr. Cowett clarified that statutorily it is impossible for the State Legislature to withdraw agencies’ money invested in LAIF. Further, the Legislature is constrained from taking special districts’ reserve funds, which specifically applies to the District with designated reserve funds.
BOARD OF DIRECTORS’ AGENDA
9. Report of
Sa
n Diego
County Water Authority’s Board of Directors’ Meeting:
The Quantification Settlement Agreement (QSA) negotiations have been finalized by all parties: the State, Metropolitan Water District of Southern California, Coachella Valley Water District, Imperial Irrigation District and the San Diego County Water Authority. Water to be transferred from the Imperial Valley to San Diego will begin at 10,000 ac. ft. per year and ramp up to 200,000 ac. ft. per year in the 19th year of the agreement. The SDCWA opted to be responsible for the lining of the Coachella and All American Canals and, in exchange, will receive 77,000 ac. ft. of “conserved” water for 110 years. Metropolitan will receive its full wheeling rate for all transferred water. Funding assistance for this lining project will be provided by the State ($235 million), and from Proposition 50 funds ($20 million). A total estimate for the lining projects is $330 million.
A Salton Sea Restoration Fund was created that will partially be funded through the agreement that IID sells up to 1.6 MAF of water to the state that will be sold to Metropolitan at a higher rate with the difference in price earmarked for this fund. Imperial Irrigation District, Coachella Valley Water District and the SDCWA will contribute $30 million to the Salton Sea Restoration Fund. Funding for the Salton Sea restoration obligations in excess of these amounts will be the sole responsibility of the State.
CLOSED SESSION
10. A Closed Session was called by President Broomell at 3:25 p.m. pursuant to:
• Government Code §54956.9(a), Conference with Legal Counsel – Existing Litigation.
Name of Case: Regeher v. Valley Center Municipal Water District
Case No. IN032378
11. The Regular Board meeting was reconvened at 3:32 p.m. No action was reported.
ADJOURNMENT
12. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at
3:34 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary