May 20, 2002

VALLEY CENTER MUNICIPAL WATER DISTRICT

Regular Board Meeting

Monday, May 20, 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 Finance Jarrell, Director of Operations Dacus, Manager of

Accounting Jeffrey, Project Engineer Grabbe, Manager of Human Resources Hale and Board

Secretary Stetson. Spectators present were: Mrs. Richardson, Principal of the Valley Center

Upper Elementary School and winners of the 4

th Grade Water Conservation Poster Contest, and

Mr. Ross, Valley Roadrunner Newspaper.

CONSENT CALENDAR

Upon motion by Aleshire, seconded by Stone and unanimously carried, the following

consent calendar items were approved:

• Minutes of the Board meeting held April 29, 2002:

• Resolution No. 2002-22 Designating Dale Mason, Member of the San Diego County

Water Authority Board, to cast the District’s vote at an Authority Board meeting in

the absence of the District’s representative

• Audit demand check numbers 89062 through 89380

• Board of Director’s request for reimbursement of expenses and per diem

compensation

• Treasurer’s Report for the period ended April 30, 2002

• Statement of Revenues/Expenses for the period July 1, 2001 through March 31,

2002

Valley Center Municipal Water District

Board of Directors’ Meeting

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ACTION AGENDA

2. Fourth Grade Water Awareness Poster Contest – Presentation of Awards;

Fourth Graders of the Valley Center Upper Elementary School participated in the District’s

Water Awareness Poster Contest for 2002 in which the theme was “California’s Water

History”. The students were asked to pick a time period of California’s history (Native

Americans, Spanish Explorer, California Pioneer, or present-California Water Seeker) and

show the water source and its use in that time period. Of the 180 posters received, 6 were

selected as Honorable Mention and 3 top winners as follows:

st Place Whitney Fredenburg

nd Place Kaylie Miller

rd Place Kristen Gangel

Honorable Mentions: Sarah Duchnak

Megan Mandich

Erika Avila

Erika Mussatti

Jack Armstrong

Shawntee Hancock

All participants of the 4

th Grade Poster Contest received a Certificate of Recognition from the

District and various conservation related material. In addition, award certificates, t-shirts

portraying their posters and ribbons were presented to the above winners with U.S. Savings

Bonds presented to the top 3 winners. Posters from the top 3 winners have been entered

in the North County Water Agencies’ regional poster contest and will be reproduced for the

artwork in the 2003 Water Awareness calendar.

Participating students, 4

th grade teachers and principal Richardson were thanked for their

continued support of the District’s water conservation programs.

3. Water System Master Plan, 2002:

At the workshop of April 29

th , the Board had been presented with the findings and

recommendations of the Water System Master Plan, 2002 Update. Discussion had focused

on:

land use changes from the previous master plan

revised ultimate demand projections

water meter projections

10 days storage requirements

conversion of the water distribution system computer model to updated software

development of GIS project database

general review of the ultimate, existing and replacement projects being recommended

recommendation to increase the meter capacity charges

Valley Center Municipal Water District

Board of Directors’ Meeting

3 5/20/2002

Projected expenditures for the facilities required for ultimate build-out are estimated at

$16.9 million. To fund these expenditures, the collection of meter capacity charges on

8,648 equivalent 3/4-inch meter connections over a 30-year build out period was assumed

with 5% earnings to result in a near zero ending balance with implementation of the following

proposed water meter capacity charges.

Meter Size Equivalent

Units

Current Meter

Capacity Charge

Proposed Meter

Capacity Charge

3/4" 1 $1,252 $1,800

1" 1.7 2,128 3,060

1-1/2" 3.3 4,132 5,940

2" 5.3 6,636 9,540

3" 10 12,520 18,000

It was clarified that funds for capital improvement projects do not have to be collected from

capacity charges, as they could be funded from another source such as the water rates.

However, if capacity charges are collected, the funds must be earmarked for and spent on

capital improvement projects per AB 1600.

Staff recommended adoption of the District’s Water System Master Plan, 2002 Update, and

to authorize staff to proceed with increasing the meter capacity charges to be implemented

in one step with an annual adjustment of the meter capacity charges using the March

Engineering News Record, Los Angeles, Construction Cost Index. A public hearing to

consider adoption of the increased meter capacity charges could be held during the regular

Board meeting of June 17

th . The revised charges would become effective 60 days following

the public hearing or August 19, 2002. An implementation and financial plan for the

Priority “A” projects identified in the Master Plan would be prepared. Periodically, water

demands and required projects will be re-evaluated.

Upon motion by Aleshire, seconded by Stone and unanimously carried, staff was

authorized to conduct a public hearing on June 17, 2002, to consider adoption of the

proposed meter capacity charge increases, and the Water Master Plan, 2002 Update

was adopted by the following resolution, entitled:

RESOLUTION NO. 2002-24

RESOLUTION OF THE BOARD OF DIRECTORS

OF VALLEY CENTER MUNICIPAL WATER

DISTRICT ACCEPTING THE WATER SYSTEM

MASTER PLAN DATED APRIL 2002

Valley Center Municipal Water District

Board of Directors’ Meeting

4 5/20/2002

by the following vote, to wit:

AYES: Directors Polito, Aleshire, Stone and Haskell

NOES: None

ABSENT: Director Broomell

4. Adoption of Recommendations from the Energy Study:

Consultants Dr. Lon House and Boyle Engineering, Inc. conducted an assessment of the

District’s use of both electricity and natural gas, the findings of which had been reviewed at

the April 29

th workshop. Recommendations of the energy assessment were reviewed, as

summarized below:

Consider the high cost of energy in the design/selection of pipe material and pump

station design.

Consider the use of “soft start” motors in all pump station construction and upgrades.

Review all existing horizontal pumps for conversion to vertical, if appropriate.

Review Rainbow Pump Station design and pump efficiency when VC-8 aqueduct

connection is completed.

Review Valley Center Pump Station design when Valley Center Road design is

completed.

Continue implementation of SCADA program for all pump stations to better monitor and

schedule pump activity.

Revise pump testing program to insure that all pumps are tested annually and all

vertical pumps found under 70% efficient are scheduled for maintenance to return

efficiency to a minimum of 70%.

Update the written operations manual on operation of District pumps, reservoirs and

water delivery system.

Remain vigilant in monitoring SDG&E, the California PUC and energy markets to

insure the best tariff for the District’s accounts, opportunities for direct access and

other opportunities for reduced consumption or reduced energy costs.

Staff noted that many of the recommendations were previously implemented or

implementation has been planned for the near future or when appropriate.

Upon motion by Aleshire, seconded by Stone and unanimously carried, the above listed

recommendations resulting from the energy assessment were approved and their

inclusion in the Strategic Plan for implementation was approved.

Valley Center Municipal Water District

Board of Directors’ Meeting

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5. Woods Valley Ranch Development Sewer Service Area - Collection of Sewer Standby Fee

and Service Charge:

Engineer’s Reports for the Woods Valley sewer service area’s proposed standby fee and

sewer service charge prepared by Berryman & Henigar were presented. The proposed sewer

improvements to be operated and maintained include a Title 22, tertiary level wastewater

reclamation facility that will serve the entire Woods Valley Specific Plan area. Once

constructed, the plant will provide for 70,000 gallons per day of wastewater capacity. This

amount of capacity is intended to serve approximately 280 equivalent dwelling units at the

design flow of 250 gallons per day per equivalent dwelling unit. It is anticipated that the

sewerage system improvements will not be completed until Fiscal Year 2004-05. In the

interim, effluent from the sewer system resulting from development within the Service Area

prior to completion of the wastewater reclamation facility will be discharged to a fiberglass

collection tank.

A detailed estimate contained in the Engineer’s Report of the estimated costs in Fiscal Year

2002-03 associated with the annual operations and maintenance of the proposed interim

improvements will be $168,000 as is shown on the attached labeled “Exhibit A”. At full buildout,

the budget to operate and maintain the sewer collection system and reclamation facility

is estimated at $335,120 per year as shown on the attached “Exhibit B”. Based on the FY

2002-03 operations and maintenance budget of $168,000, the standby fee is $600.00 per

EDU or $50.00 per EDU per month. (Total estimated O&M and replacement costs of

$335,120 per year upon full build-out, will require an annual assessment of $1,196.86/EDU.)

Assessment of the Standby Fee ($600/EDU) on the affected properties within the Woods

Valley Ranch Sewer Service Area in FY 2002-03 is proposed as follows:

FY 2002-03

Standby Fee

APN EDUs Amount

189-012-18 0.00 $ 0

189-012-19 5.00 $ 3,000

189-092-22 0.00 $ 0

189-100-01 73.00 $ 43,800

189-100-02 94.00 $ 56,400

189-130-04 79.00 $ 47,400

189-141-08 18.00 $ 10,800

189-282-18 11.00 $ 6,600

280.00 $168,000

To ensure that the operation and maintenance of the Woods Valley Sewer System will be

funded by those properties within the designated sewer service area and, hence, those

properties receiving the benefit, and not a burden to the District’s water customers, the

assessment of a standby fee collected on the tax roll was proposed. As the property is

developed, the assessment upon the property would be through a sewer service charge also

Valley Center Municipal Water District

Board of Directors’ Meeting

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proposed to be collected on the tax roll. As such, each July 1

st , properties that have been

developed will be assessed a sewer service charge on their tax bills rather than a standby

fee.

Director of Finance Jarrell explained that assessment of a standby fee must be in compliance

with Proposition 218 which necessitates a hearing, and that each record owner of property

proposed to be subject to the standby fee has the right to submit a standby fee ballot in favor

of or in opposition to the proposed standby fee. Thus, standby fee ballots will be mailed to

the record owner of each parcel located within the sewer service area and subject to a

proposed standby fee. The sewer service charge collected on the tax roll does not require

a ballot vote, but a hearing is required and notification mailed to the property owners.

Staff recommended adoption of Resolution No. 2002-20 to approve initiating proceedings

pursuant to the standby fee within the Woods Valley Sewer Service area to be collected on

the tax roll, preliminary approval of the Engineer’s Report and setting the date and time of the

public hearing for said charges to be July 15, 2002, at 2:00 p.m. Further, adoption of

Resolution No. 2002-21 was recommended to declare intention to collect sewer service

charges within the Woods Valley Sewer Service area on the tax roll, preliminary approval of

the Engineer’s Report and setting the date and time of the public hearing for said charge to

be July 15, 2002.

Upon motion by Aleshire, seconded by Stone and unanimously carried, the following

resolution, entitled:

RESOLUTION NO. 2002-20

RESOLUTION OF THE BOARD OF DIRECTORS OF

THE VALLEY CENTER MUNICIPAL WATER DISTRICT

DECLARING ITS INTENTION TO PRESCRIBE AND

COLLECT SEWER STANDBY FEES WITHIN THE

WOODS VALLEY SEWER SERVICE AREA

was adopted by the following vote, to wit:

AYES: Directors Polito, Aleshire, Stone and Haskell

NOES: None

ABSENT: Broomell

Valley Center Municipal Water District

Board of Directors’ Meeting

7 5/20/2002

Upon motion by Aleshire, seconded by Stone and unanimously carried, the following

resolution, entitled:

RESOLUTION NO. 2002-21

RESOLUTION OF THE BOARD OF DIRECTORS OF

THE VALLEY CENTER MUNICIPAL WATER DISTRICT

DECLARING ITS INTENTION TO PRESCRIBE AND

COLLECT SEWER SERVICE CHARGES WITHIN

THE WOODS VALLEY SEWER SERVICE AREA

was adopted by the following vote, to wit:

AYES: Directors Polito, Aleshire, Stone and Haskell

NOES: None

ABSENT: Director Broomell

6. Strategic Plan for Fiscal Years 2002-03 and 2003-04:

The District’s Strategic Plan for Fiscal Years 2002-03 and 2003-04 incorporating the

suggested revisions from the April 29

th workshop was presented for the Board’s adoption.

Adding “Teamwork” as an organizational value was suggested. Upon adoption of the

District’s Ethics Policy, which is a proposed Strategic Plan goal for FY 2002-03, arrangements

for an Ethics Workshop will be pursued.

Upon motion by Aleshire, seconded by Stone and unanimously carried, the District’s

Strategic Plan for Fiscal Years 2002-03 and 2003-04 was adopted as is set forth on the

attached, labeled “Exhibit C”.

7. Classification and Compensation Study Recommendations:

Per the Administrative Code Section 8.9, “the District shall review and evaluate the position

classifications existing within the District every third year.” Three years ago, a comprehensive

classification and compensation study had been completed. For FY 2002-2003, an in-house

review of position classifications was undertaken in which positions of the District were

surveyed with those at 14 comparable water agencies that had been identified and utilized

in previous surveys.

Valley Center Municipal Water District

Board of Directors’ Meeting

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Manager of Human Resources Hale presented recommendations as a result of the study as

follows:

% to % Increase

Current Title Proposed Title Change Market to Dist. Range

Administration:

Exec. Assistant/Bd. Sec’y. No Change 8.55 10.50

Administrative Ass’t. II Human Resources Asst. 20.27 21.55

Mgr. of Human Resources No Change 15.50 15.80

Finance:

Information Systems Spec. No Change 13.69 15.77

Manager of Accounting No Change 9.05 10.20

Engineering:

Project Manager No Change 10.75 15.80

Construction Inspector No Change 6.42 5.00

Sr. Construction Inspector No Change 6.63 5.00

Engineering Assistant No Change 7.86 10.20

Engineering Tech. III GIS Technician 5.76 5.00

Field:

Landscape Main. Worker Establish I, II, & III levels 8.23 10.20

Implementation of the study’s recommendations would be at a cost of approximately 3.5% of

payroll.

Upon motion by Stone, seconded by Haskell and unanimously carried, the

recommendations resulting from the classification and compensation study as

presented were approved for adoption with the Fiscal Year 2002-03 Budget.

8. Award of Contract for the Upper Welk & Meadows P.R.V. Stations:

Bids for the Upper Welk and Meadows P.R.V. Stations project were opened on April 30

th .

The lowest bid was received from SCW Contracting at $178,300. The engineer’s estimate

for this project had been $192,000. District Engineer Jewell noted that a written protest had

been received from the second lowest bidder, RKC Constructors, regarding listing of

subcontractors, however, the response received from SCW Contracting is satisfactory to

District legal counsel. Award of contract to SCW Contracting for the Upper Welk & Meadows

P.R.V. Stations was recommended.

Valley Center Municipal Water District

Board of Directors’ Meeting

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Upon motion by Aleshire, seconded by Stone and unanimously carried, the following

resolution, entitled:

RESOLUTION NO. 2002-23

RESOLUTION OF THE BOARD OF DIRECTORS OF

VALLEY CENTER MUNICIPAL WATER DISTRICT

AWARDING CONTRACT FOR THE UPPER

WELK & MEADOWS P.R.V. STATIONS

was adopted by the following vote, to wit:

AYES: Directors Polito, Aleshire, Stone and Haskell

NOES: None

ABSENT: Director Broomell

9. Report of De Minimus Agreement Settlement – Chatham Brothers Barrel Yard Clean-up Site:

A report from Director of Finance Jarrell was distributed reporting that the de minimus

agreement authorized by the Board in Closed Session on November 5, 2001, was accepted

and executed by the Potentially Responsible Parties (PRP) Steering Committee with respect

to the cleanup of hazardous waste and other environmental contamination at the Chatham

Brothers Barrel Yard site.

Between 1980 and 1982, the District had disposed of 992 gallons of waste oil and solvent at

the Chatham Brothers Barrel Yard, which was a permitted facility. A final accounting of the

District’s expenses for the cleanup of the site shows a net cost of $50,651.

CLOSED SESSION

10. A Closed Session was called by Vice President Polito at 4:32 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

The Regular Board meeting was reconvened at 4:49 p.m. No action was reported.

Valley Center Municipal Water District

Board of Directors’ Meeting

10 5/20/2002

ADJOURNMENT

11.

Upon motion by Aleshire, seconded by Stone and unanimously carried, the meeting

was adjourned at 4:50 p.m.

ATTEST: ATTEST:

______________________________ _______________________________

Secretary President