VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, July 16, 2007
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 Grabbe, Director of Operations Hoyle, Accounting Manager Pugh, Project Manager Kilwein, Board Secretary Stetson, and IT Specialist Rivard. Spectators present were Mr. and Mrs. Bemanian.
CONSENT CALENDAR
1. Upon motion by Polito, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meetings held July 2 and 9, 2007
• Audit demand check numbers 114162 through 114328 and wire disbursements for the period April 1, 2007 through June 30, 2007
• Treasurer’s Report and Financial Statement for the period ended May 31, 2007
• Quarterly report of expense reimbursements per Government Code §53065.5
PUBLIC HEARINGS
2. Adoption of Proposed Water Meter Capacity Charges:
The public hearing to consider the proposed increases in the District’s meter capacity charges was opened at 2:03 p.m. District Engineer Grabbe explained that the District’s meter capacity charges, a component of the cost for a new water meter, are collected and the revenue is allocated toward construction of capital facilities, such as reservoirs, pump stations and pipelines needed to provide service to the new meter accounts. The facilities to serve new developments are identified in the District’s Water Master Plan as adjusted in 2005. The meter capacity charges are reviewed each year and adjustments, if necessary, are recommended to provide for cost increases due to inflation as determined by the Engineering News Record (ENR) Construction Cost Index (CCI) for Los Angeles. Upon review of the identified facilities needed and the current District meter capacity charges, staff recommended that the meter capacity charges be increased by the ENR CCI increase from March 2006 to March 2007, which is 3.7509%. The proposed increases in the meter capacity charges were reviewed which are set forth below:
Meter Size |
Current Meter Capacity Charge |
Proposed Meter Capacity Charge |
5/8” |
$2,114 |
$2,193 |
¾” |
$3,155 |
$3,273 |
1” |
$5,363 |
$5,564 |
1½” |
$10,411 |
$10,802 |
2” |
$16,721 |
$17,348 |
3” |
$31,550 |
$32,733 |
Notification of the proposed increases in the District’s water meter capacity charges had been published in the paper. No comments were received and there were no comments from the audience. The public hearing was closed at 2:09 p.m. Adoption of Ordinance No. 2007-11 approving the proposed water meter capacity charges with an effective date of September 16, 2007, was recommended.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2007-11
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING ADMINISTRATIVE CODE SECTION 160.4(c)
INCREASING THE METER CAPACITY CHARGES
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
3. Adoption of the Proposed Lower Moosa Canyon Wastewater Capacity Charge:
The public hearing to consider an increase in the Lower Moosa Canyon Water Reclamation Facility wastewater capacity charge was opened at 2:10 p.m. District Engineer Grabbe reviewed that, at present, property owners requesting wastewater capacity from the Lower Moosa Canyon Water Reclamation Facility are required to pay a wastewater capacity charge of $6,775 per equivalent dwelling unit (EDU). The funds collected are used to construct improvements needed to expand the capacity of the treatment facility as required for new connections. The wastewater capacity charge was adopted utilizing estimated construction costs based on preliminary design reports. An adjustment of the charge for inflation based on the Engineering News Record (ENR) Construction Cost Index (CCI) was recommended. Per the ENR CCI for March 2007, construction costs have increased by 3.7509% since the last increase in the Moosa wastewater capacity charge. Therefore, an increase in the wastewater capacity fee of $254.00 per EDU or a wastewater capacity charge totaling $7,029/EDU was recommended. If adopted, the proposed increase in the Lower Moosa Canyon Water Reclamation Facility wastewater capacity charge would become effective September 16, 2007.
In response to inquiries from the Board regarding the difference in wastewater capacity charges between agencies in which the District’s proposed charge of $7,029/EDU is high in comparison, the General Manager clarified that there are many factors that affect wastewater capacity charges and by law these funds can only be allocated for identified improvements needed for new demands on the wastewater system. Other agencies’ wastewater facilities may have been constructed years before the District’s Moosa facility and their capacities fully committed with no immediate need for improvements. The District’s wastewater capacity fee is determined based on the cost of the infrastructure improvements identified in the current master plan to expand the Moosa treatment system to 1.0 mgd. These identified costs and the anticipated future connections to the plant determine the wastewater capacity fee.
Notification of the proposed increases in the District’s Lower Moosa Canyon Water Reclamation Facility wastewater capacity charge had been published in the paper. No comments were received and there were no comments from the audience. The public hearing was closed at 2:26 p.m. Adoption of Ordinance No. 2007-12 approving the proposed increase in the Moosa wastewater capacity charge to $7,029 per EDU with an effective date of September 16, 2007, was recommended.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2007-12
ORDINANCE OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER
DISTRICT AMENDING ADMINISTRATIVE CODE
SECTIONS 171.2 AND 171.10 TO INCREASE
THE WASTEWATER CAPACITY CHARGE FOR THE
LOWER MOOSA CANYON WATER RECLAMATION FACILITY
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
ACTION AGENDA
4. Establishment of Special Service Connection Charge for the Welcome View Wastewater Line Extension Project:
Project Manager Kilwein requested approval of a Special Service Connection Charge for the Welcome View Wastewater Line Extension Project which was constructed by Vista Pacific LTD Partnership in Sandhurst Way and Welcome View Drive. The facility improvements consist of approximately 408 feet of 4” pressure wastewater collection line, 1,470 feet of 2” pressure wastewater line, and required appurtenances. The constructed facilities have sufficient capacity to provide wastewater service to the benefit of other properties. The District’s policy provides for the establishment of Special Service Connection Charges to reimburse developers for facilities they construct that benefit properties outside of their development.
A total cost of the facility improvements of $298,725 was confirmed. Cost allocations to properties in the service area were determined based on a “Reach and Capacity” technique that proportions the costs based on the total equivalent dwelling units (EDUs) served by each segment or “reach” of the line. Current land use designations were used to determine capacity requirements and a Special Service Connection Charge calculated for that portion of the service area served by each segment of the facility, as follows:
Area A $ 5,705/EDU
Area B $10,250/EDU
Area C $17,336/EDU
Area D $27,561/EDU
Letters were mailed to property owners in the Welcome View Line Extension designated service area notifying them of the proposed Special Service Connection Charge. Staff clarified that said charge is imposed only if the property owner desires to obtain wastewater service and connect to the wastewater collection system. Project Manager Kilwein stated that a property within the designated service area for the Special Service Connection Charge had contacted the District claiming that there was a conflict as there was an agreement with the proponent of the line extension. The District’s role, however, is to determine the Special Service Connection Charge and its appropriate allocation. The Special Service Connection Charge would be in effect for 20 years and would be collected by the District prior to the property owner connecting to the system to be refunded to the developer in accordance with the reimbursement agreement.
Upon motion by Polito, seconded by Stone and unanimously carried, the Special Service Connection Charges for properties within the service area of the Welcome View Wastewater Line Extension Project were approved as set forth above and as designated on the attached Service Area Map.
5. Proposed Miscellaneous Administrative Code Revisions:
Proposed revisions to the District’s Administrative Code to comply with current practices, update terminology and increase the construction meter deposit were presented to the Board for consideration of adoption, which are summarized below:
▪ Sec. 160.7 – Meter Service Exchange. Eliminate reference to core value credit upon a meter service exchange.
▪ Sec. 160.23 – Residential Fire Service. Eliminate reference to the monthly service fee for residential fire sprinkler meters to be at 55% of the meter service fee as the charge is set forth in Section 160.3(a).
▪ Sec. 160.24 – Temporary Water Service. Increases the deposit for a construction meter service to $1,200, and establishes that the contractor/applicant is responsible for any damage to or loss of the meter.
▪ Sec. 162.3 – MWD-IAWP Certification and Recertification. Sets forth that applications for participation in the MWD-Interim Agricultural Water Program will not be accepted or processed during or under a substantial threat of a water supply reduction.
▪ Article 165 – Water and Sewer Availability Charges. Remove references in this article to sewer availability charges.
▪ Sec. 165.2 – Deferral/Exemption Policy, Water Availability Charges. Sets forth exclusion from deferral for parcels that can derive a benefit from the projects constructed from the proceeds of the charges, if adjacent to a water line, or if the applicant is not in good financial standing with the District. Revisions clarify that termination of deferral and payment of charges does not guarantee water service.
▪ Sec. 170.3 – Wastewater Service Definitions. Modify the capacity value for an EDU from 200 gallons per day to 250 gallons per day and that the District’s responsibility for gravity wastewater systems ends at the main rather than the clean-out.
▪ Sec. 171.5 – Wastewater Service Connection. Establishes that the District’s responsibility for maintenance and responsibility of a wastewater connection shall be at the lateral connection point on the wastewater collection line. Also, construction, maintenance and operation of the lateral shall be the responsibility of the property owner.
▪ Sec. 230.4 – Water Conservation Measures. Modified the water conservation measures to implement shorter landscape irrigation periods for improved water-use efficiency.
▪ Sec. 230.5 – Water Usage Reduction Levels. Updates this section to eliminate the reference to the base period for water usage reduction as any usage reduction will be determined by the wholesale water suppliers.
▪ Sec. 270.4 – Requests for Encroachment Permit. Modified to eliminate the procedure of recording encroachment permits against the property.
▪ Sec. 270.5 – Guidelines for Granting Encroachment Permits. Clarification added for required installation of private wastewater tight lines and sleeves. Requirements for electrically operated gates over District easements and security entrance gates and guardhouse structures in the proximity of District facilities were included.
Upon motion by Polito, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2007-10
ORDINANCE OF THE BOARD OF DIRECTORS
OF VALLEY CENTER MUNICIPAL WATER
DISTRICT AMENDING ADMINISTRATIVE CODE
SECTIONS 160.7, 160.23, 160.24, 162.3,
165.2, 170.3, 171.5, 230.4, 230.5, 270.4
AND 270.5 WITH MISCELLANEOUS REVISIONS
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
6. Review of the Proposed Commercial Wastewater Discharge Program:
The Plan and Schedule for development of the Sewer System Management Plan, a requirement of the State Water Resources Control Board for publicly owned wastewater collection systems, was previously approved by the Board. A requirement of the Sewer System Management Plan is development of a grease control program.
In order to standardize and enforce commercial wastewater requirements, a Commercial Wastewater Discharge Program was created. The Program’s manual sets forth the basic criteria for the installation of fats, oils and grease removal equipment as well as inspection processes and procedures for non-compliance. The Program sets forth the requirement for owners of food preparation facilities to obtain an application and approval for installation and use of a grease removal system and its cleaning and maintenance as well as periodic inspections. Upon adoption of the commercial wastewater discharge program, there will be a six-month compliance period for existing facilities and new facilities will be required to comply with the application and approval process before discharging any wastewater into the collection system.
Enforcement procedures for the proposed Commercial Wastewater Discharge Program are being evaluated further with General Counsel and the Program will be presented at a subsequent meeting for the Board’s consideration of adoption.
GENERAL MANAGER’S AGENDA
7. Review of Miscellaneous Informational Items:
General Manager Arant reported that at the June 28th San Diego County Water Authority Board meeting, the Board adopted its rates and charges for Fiscal Year 2007-08. The Authority’s rate structure is changing in which there is now a supply rate and a treatment rate. The supply rate considers the cost of water from Metropolitan, IID water supply, and canal lining water. The treatment rate includes treatment costs from Metropolitan and other agencies that provide treatment service and will soon include the treatment expenses from the Twin Oaks Treatment Plant. The cost impacts on the District’s rates, as well as the descriptions of the charges itemized on the bills will be evaluated further. The proposed increase in the District’s rates to be effective January 1, 2008, will be presented to the Board for consideration at a meeting in August.
GENERAL COUNSEL’S AGENDA
8. Operation of Pumps for the Delta’s Water System:
General Counsel Cowett referred to the article in the Contra-Costa Times regarding the anticipated water cuts from the Delta noting that state and federal water agencies and environmentalists that sued to protect the Delta smelt from the effects of water pumping will be submitting proposals for interim operation of the water pumps until a new permit is issued. A new permit is expected to be issued in the fall of 2008. In April, a Superior Court Judge had ruled that the State Department of Water Resources lacked a permit required under the California Endangered Species Act and ordered the pumps on the Delta shut down, which is on hold pending appeal. An interim operation plan submitted by the U.S. Fish and Wildlife Service recommends that the Delta water deliveries be reduced to the 1990s level which would be a cut back of between 500,000 to 1 million acre feet per year. A decision on the interim operating plan could be issued in August. General Counsel Cowett stated there are estimates of cut backs in allocation levels of between 17%-22%. Water agency officials are concerned that some of the provisions of the interim operational plan could be incorporated in the provisions of the 2008 permit.
Water cut back plans for agricultural customers are already being developed. General Manager Arant stated he will participate in a conference call on July 18th and there is a meeting later in July with representatives of agricultural agencies on the cut back proposals. A determination of the base year to use for water allocations will be discussed. The base year 2003-04 is being sought as it has similar hydrological conditions that exist at present and the maximum amount allowed under the Interim Agricultural Water Program was delivered. A call for approximately a 30% reduction to agricultural customers is expected in September to be effective January 2008.
ADJOURNMENT
9. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at 3:52 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary