June 3, 2002

Regular Board Meeting

Monday, June 3, 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 Vice

President Polito at 2:00 P.M.

Board members present were: Directors Polito, Aleshire, Stone and Haskell. Director Broomell

was absent. Staff members present were: General Manager Arant, General Counsel Cowett,

District Engineer Jewell, Director of Operations Dacus, Acting Director of Finance Jeffrey, and

Board Secretary Stetson. Spectator present was Mr. Ross, Valley Roadrunner Newspaper.

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MWD Ready-to-Serve Charge $352,200

Revenue Debt Service 94,086

Capital Construction 140,714

Total $587,000

Metropolitan’s Ready-to-Serve (RTS) charge assessed the District will be $1,127,000 in

FY 2002-03. This will be funded through a fixed charge special assessment collected by

Metropolitan, $352,200 collected from a portion of the proposed water availability charge and

the remaining from a portion of the District’s water commodity rate. The proposed water

availability charge is the equivalent of a $15.05 per acre foot increase in the selling price of

water.

Mr. Jeffrey explained that as of January 1, 2003, certified agricultural water sales will be

excluded from the RTS charge, however, a new capacity reservation charge of approximately

$650,000 will be implemented. The fixed charge special assessment collected by

Metropolitan plus the District’s portion of the water availability charge allocated toward the

RTS charge is expected to be almost equal to Metropolitan’s RTS charge plus the new

capacity reservation charge. Mr. Jeffrey noted that when the final allocation of these charges

from Metropolitan is known and the District’s long-term capital financial plan is complete,

alternatives for rate restructuring will be evaluated.

Notices of the public hearing on the proposed water availability charge had been published,

posted and new property owners since the assessment of this charge for Fiscal Year 2001-

2002 received notification by direct mail. No written communication on the proposed water

availability charge was received and there were no comments from the audience on this

matter. The public hearing was closed at 2:05 p.m.

A deferment from the District’s water availability charge is available if the property has a

separate parcel number and is permanently dedicated to open space or it is not now using

and there is no intention to use water purchased from the District.

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3. Budget Amendment for the Couser Canyon Water Main Replacement Project:

Board approval had been granted in December of 2001 for a change in scope of work for the

Couser Canyon Water Main Replacement project. Installation of an additional 550 feet of

pipe in the cross street, Pala Loma Drive, had been approved as it was discovered that the

main had deteriorated.

This additional pipeline work had been estimated at $45,960, but the source of funding had

not been identified. Upon conclusion of the project, an accounting of funds for the Couser

Canyon Water Main Replacement project indicates that $40,000 in additional funds is

needed. Staff proposed transferring $40,000 from the McNally Road/Oak Glen Road Pipeline

Replacement project, which has excess funds, to the Couser Canyon Pipeline Replacement

fund. It was noted that both projects are anticipated to be completed by July 1

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4. Adoption of 2002 Revisions to the Local Guidelines for Implementing the California

Environmental Quality Act (CEQA):

Revisions to the District’s Local Guidelines for Implementing CEQA incorporating recent

amendments adopted by the Legislature were presented for the Board’s review and

consideration of adoption. The “Local Guidelines” are used by the District for assessing and

analyzing the environmental implications of a project prior to approval. General Counsel

Cowett explained that the proposed updates contain no significant changes to the District’s

Local Guidelines for Implementing CEQA. District Engineer Jewell reported that, in

compliance with CEQA, a Notice of Intent to Adopt a Negative Declaration pertaining to the

proposed increase in the District’s meter capacity charges has been filed.

5. LAFCO 2002 Special Districts Advisory Committee Election:

The Local Agency Formation Commission (LAFCO), which oversees the formation,

reorganization and dissolution of cities and special districts, is conducting a mailed ballot

election for eight Special Districts Advisory Committee members. Ten nominations for the

Advisory Committee were received.

A nominating committee appointed to review the nominations submitted concluded, upon its

review of all candidates, that all are qualified to serve on the Advisory Committee and no

specific recommendations were made. The District’s vote must be cast by its presiding

officer, or an alternate member of the legislative body appointed by the other members. The

nominated candidates for the LAFCO 2002 Special Districts Advisory Committee election are:

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Harry Ehrlich, Olivenhain MWD (Incumbent)

Dan McMillan, Padre Dam MWD (Incumbent)

Jo MacKenzie, Vista ID (Incumbent)

Robert Yarris, Grossmont Hospital District

Gary Arant, Valley Center MWD (Incumbent)

Ron Fuller, Alpine Fire Protection District

Keith Lewinger, Fallbrook PUD (Incumbent)

Philip Keep, Whispering Palms CSD (Incumbent)

Dennis Shepard, North County Cemetery District (Incumbent)

Edward Burcham, North County FPD (Incumbent)

6. Appointment of William Jeffrey as Alternate Director, ACWA/JPIA:

The Association of California Water Agencies/Joint Powers Insurance Authority (ACWA/JPIA)

has requested that the District appoint an Alternate Director to the ACWA/JPIA, a position

that became vacant upon the retirement of Jere Jarrell. The ACWA/JPIA Alternate Director

represents the District in the absence of Director Merle Aleshire, the District’s ACWA/JPIA

Director. Staff recommended appointment of William Jeffrey, Acting Director of Finance, to

serve as the District’s Alternate Director to the ACWA/JPIA.

7. San Diego County Water Authority’s Customer Satisfaction Survey:

The District’s responses to the San Diego County Water Authority’s annual Customer

Satisfaction Survey, which provides the opportunity for member agencies to evaluate how

well the Authority is meeting their needs, were reviewed. Authority staff has used the

information from the survey to measure their level of customer service and changes have

been implemented in response to comments received from the survey in previous years.

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