VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Tuesday, April 21, 2008
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, Stone and Haskell. Director Broomell was absent. Staff members present were: General Manager Arant, General Counsel Akins, District Engineer Grabbe, Director of Finance Jeffrey, Director of Operations Hoyle, Board Secretary Stetson and IT Manager Rivard. Audience members present were: Messrs. Holtz, B., Holtz, E, Slominski, Davis, and Ross, Mr. and Mrs. Bisso and Ms. Jacobs.
CONSENT CALENDAR
1. Upon motion by Aleshire, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Audit demand check numbers 117764 through 117943
ACTION AGENDA
2. Public Hearing on the Proposed Lake Turner Solar Power Project:
An Initial Study and Mitigated Negative Declaration per the California Environmental Quality Act (CEQA) were prepared for the proposed Lake Turner Solar Power Project to be located at 11519 Betsworth Road. A notice of completion of the document and its availability for review were mailed to property owners within 300 feet of the perimeter of the District’s Lake Turner property. Also, the notice of today’s public hearing on the proposed project and the availability of the document for review was published twice in the Roadrunner Newspaper. The CEQA documents are available on the District’s web site, the Valley Center Library and at the District’s office. The CEQA public review period for the Lake Turner Solar Power Project is from March 27 through April 25, 2008, during which comments from the public on the proposed Mitigated Negative Declaration may be filed. The Mitigated Negative Declaration was forwarded to the State Clearing House and the County for their review and input.
The public hearing on the proposed Lake Turner Solar Power Project was opened at 2:03 p.m. Mr. Larry Slominsky, Vice President of World Water and Solar Technologies, Western Region, provided an overview of the project stating that the solar electric power project as proposed will supply Valley Center Municipal Water District cost effective, clean electricity to support the energy requirements at the Betsworth Pumping Station. Through a Power Purchase Agreement with the District, Solar Power Partners will own the system and World Water & Solar Technologies designing, building, operating and maintaining the system with the District purchasing the electricity produced for a minimum of 25 years. The solar system will be located on the north side of the District’s Lake Turner property. The solar modules will track the sun from east to west daily and convert the solar energy to electricity with no emissions using solar electric technology (photovoltaics). Approximately 2 million kWh per year of electricity (1.1 megawatt) will be produced, which is about 20% of the Betsworth Pump Station’s energy requirements. In the event that electrical power is interrupted at the Betsworth station, the solar system will continue to provide power that will allow a limited number of water pump operations to continue improving the overall availability and sustainability of the District’s system. The District will also receive the Renewable Energy Credits from the project.
Saundra Jacobs of SFC Consultants, environmental consultant for the proposed Lake Turner Solar Power Project, stated that a Mitigated Negative Declaration was prepared for the Project as it was determined that the impacts from the project were all mitigated to less than significant levels or mitigation incorporated to reduce the impacts to less than significant levels. Environmental settings assessed included: biological, archeological, Native American, geotechnical and hydrologic in order to determine potential environmental impacts. The environmental issues analyzed for potential impacts were reviewed, which are:
Aesthetics Land Use Planning Consistency
Air Quality Energy and Mineral Resources
Biological Noise
Cultural Resources Public Services and Utilities
Geology-Soils-Seismicity Recreation and Population
Hazards/Hazardous Materials Transportation
Hydrology and Water Quality
Mitigation measures were incorporated to reduce the impact to less than significant levels for the short-term construction impacts related to air quality, noise and traffic impacts.
Mr. Keith Davis of 11534 Betsworth Road stated he received the notice of the public hearing on the proposed solar energy project at Lake Turner just two days ago. Mr. Davis voiced that such notices should be received with more time for review and that such public hearings should be held in the evening to accommodate working people’s attendance. He requested information on the cost for the electrical solar power to be generated. General Manager Arant responded that the Notices of the Public Hearing to surrounding property owners of Lake Turner had been mailed the first week in April. The District’s cost for the solar energy power is 9.3¢/kWh compared to the current rate of 10.6¢/kWh from SDG&E at the Betsworth Pumping Station. Also, electricity generated in excess of the District’s needs will be sold back to SDG&E at a profit of approximately 1.3¢/kWh which is estimated to generate $30,000 to $40,000 per year. In addition, as part of the agreement with World Water & Solar Technologies, the District has secured the Renewable Energy Credits that currently have a market value of between 1¢ and 1.5¢ per kWh or $25,000 to $30,000 per year with an accelerated value anticipated.
In response to Mr. Davis’ inquiry regarding the water run-off into Lake Turner from the solar project, General Manager Arant responded that Lake Turner is high in turbidity and total dissolved solids, but there is no presence of organic compounds or chemicals of a level of concern. Water run-off from the solar project is controlled as it is directed into a channel that connects to a collection basin. It was further noted that the District’s Lake Turner water is not used in the District’s potable water system.
No additional comments were received from the audience members and the public hearing was closed at 2:33 p.m.
The Mitigated Negative Declaration for the proposed Lake Turner Solar Energy Project will be considered for adoption at an adjourned regular meeting of the Board to be held on Monday, May 12, 2008, at 2:00 p.m.
3. Consideration of Policies Pertaining to the MWD-IAWP Supply Reduction Program:
At the Board meeting of April 7, 2008, staff had been directed to evaluate and present to the Board for consideration several items pursuant to Metropolitan Water District’s Interim Agricultural Water Program (MWD-IAWP). They include: support continuance of the MWD-IAWP, parameters for the purchase of an additional meter for an IAWP account, and the 26 units of domestic use for mixed ag/domestic accounts.
General Manager Arant noted that the District’s position has been to support the MWD-IAWP and its continuance. A Metropolitan Water District water rate working group which is comprised of member agencies’ managers will recommend to Metropolitan that the IAWP as currently structured be continued and that the program be studied to determine the long-term future of the Program. Staff recommended continued support of the program and adherence to the supply reduction implementation plan to demonstrate the benefit of the MWD-IAWP as a water resource program. Should the MWD-IAWP be phased out in the future, it was the consensus that upon termination of the program, all customer classifications will share equally in the event of a future supply reduction.
As part of the District’s Implementation Program for the Supply Reduction, the District’s mixed ag/domestic accounts are subject to a 30% reduction compared to the base year usage. However, the first 26 HCF considered domestic usage is billed at the higher M&I rate. Each ag/domestic account, regardless of consumption, is allocated a minimum 26 units per month. Requests have been received from customers to modify the allocation methodology whereby the first 26 HCF M&I usage each month be separated from the remaining ag. usage and apply the percentage reduction only to the ag. portion of the base year’s consumption. If this revised methodology is implemented, it would reduce the District’s margin for water loss to less than 6%. Should the District exceed its allocation for ag. consumption in 2008, it could result in an assessment of fines and a reduced allocation in the subsequent year of the reduction program.
An amendment to the District’s Administrative Code to address the issue of an IAWP customer purchasing an additional meter during a period of a threatened water supply reduction or during a supply reduction was presented for the Board’s consideration of adoption. The amendment provides that an additional meter purchased by an IAWP account would be classified ag/domestic and grouped with the existing ag. meter for purposes of a total IAWP allocation and be subject to the Supply Reduction Implementation Program. The Financial Officer of Metropolitan Water District has confirmed that the purchase by an IAWP participant of an M&I meter on a parcel with an ag. meter would be viewed as circumventing the regulations of the IAWP and would be viewed as a deterrent to the support for continuation of the Program. Director Aleshire suggested that the proposed amendment be clarified to set forth that the additional meter stipulation applies to an existing ag/domestic IAWP account.
Director Stone noted that the agricultural industry and its supporting organizations will need to work together on the many complex options facing the industry. At this point, segments participating in the IAWP would prefer the option to withdraw and pay full M&I price, and other IAWP participants wish to continue complying with the supply reductions and continue to receive the discount for the interruptible status. The Ag. Water Team is addressing the complex issues and will be developing options for transition of the IAWP. The Avocado Commission and Ag. Water Team are an avenue for the growers to interact with Metropolitan on the issues.
Mr. Al Stehly, a Valley Center grower/grove manager, voiced that he supports the District’s continued support of the IAWP and enforcement of the Supply Reduction Implementation Plan to demonstrate compliance with the regulations and that it is a viable water resource program for Metropolitan. Mr. Stehly stated that the discount provided through the IAWP is very important to growers in the region. He noted that water for agricultural purposes is designated “surplus water” and is subject to interruption whether or not there is a discount provided and, therefore, he favors retaining the discount.
Mr. Ben Holtz of 9370 Circle R Drive addressed the Board stating that he opposes the proposed amendment to the District’s Administrative Code pertaining to the grouping of water allocations if an IAWP account purchases a new water meter for the property during a period of supply reduction or the threat of reduction. He expressed that the proposed policy is discriminatory against agriculture. Staff responded that the proposed amendment affecting IAWP accounts requesting the purchase of a new meter and the grouping of the meters with a total IAWP allocation per the base year will allow for compliance with the District’s Supply Reduction Implementation Plan. This action will be important upon an audit by Metropolitan and for the Plan’s continuation in the future.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the Board approved continuing to support and advocate continuance to demonstrate the water resource benefit of the Interim Agricultural Water Program.
Director Aleshire made the motion to separate the first 26 HCF of usage for IAWP participants with mixed ag/domestic accounts that is billed at the M&I rate and apply the supply reduction to the remaining usage of the base year to determine the affected mixed ag/domestic accounts’ allocations. The motion did not move forward for lack of a second.
Upon motion by Stone, seconded by Haskell and unanimously carried, the Board directed that the splitting of the 26 HCF of ag. allocation from ag/domestic accounts be reconsidered so that when the allocations for 2009 are calculated that the change is effective.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance with the provision for its application to existing ag/domestic accounts, entitled:
ORDINANCE NO. 2008-02
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
AMENDING ADMINISTRATIVE CODE SECTION 160.2
CONCERNING APPLICATIONS FOR WATER METERS
was adopted by the following vote, to wit:
AYES: Directors Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Broomell
4. Resolution Approving Increase in Legal Fees From Best, Best & Krieger:
The Board had directed staff to annually place on the agenda consideration of an increase in legal services fees based on the Consumer Price Index change, with any change approved to become effective July 1st. The CPI for the San Diego area for the year ending December 31, 2007, increased 2.3%. A 2.3% increase in the legal fees is comparable to legal fees paid by other agencies.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2008-16
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ADOPTING AN AMENDMENT TO THE AGREEMENT
WITH BEST, BEST & KRIEGER, LLP, TO APPROVE
AN INCREASE IN THE FEES FOR LEGAL SERVICES
was adopted by the following vote, to wit:
AYES: Directors Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: Director Broomell
GENERAL MANAGER’S AGENDA
5. Review of Miscellaneous Information Items:
• Review of Status Report for March 2008 – Water deliveries compared to FY 2006-07 are down 22%. Projected water sales for FY 2007-08 are 37,635.4 ac. ft. Budgeted sales had been 45,400 ac. ft. The reduction in water sales are a result of the wet weather in the beginning of 2008 and the reduction in agricultural water consumption. The District’s fleet average miles per gallon (MPG) has improved to 10.4 largely due to use of mid-sized trucks rather than heavy-duty and the addition of smaller trucks to the fleet. General Manager Arant noted that in 2003-04, the District’s vehicles averaged 8.9 MPG. The savings to the District due to the increase in miles per gallon is substantial as annual total miles driven is approximately 480,000. Also, the District could receive carbon offset credits for the reduction in gasoline consumption.
CLOSED SESSION:
6. A Closed Session was called by Vice President Polito at 3:29 p.m. per:
· Government Code §54957.5(a) – Conference with Labor Negotiators
Agency Representative: Gary T. Arant, General Manager
Employee Organization: Valley Center M.W.D. Employees’ Association
· Government Code §54956.8 – Real Property Transaction, Conference
with Negotiator
Property: 11580 Betsworth Road, Valley Center
Agency Negotiator: Gary T. Arant, General Manager
Negotiating Party: WorldWater & Solar Technologies
Under Negotiation: Terms of Lease
· Government Code §54956.8 – Real Property Transaction, Conference
with Negotiator
Property: 9539 Sage Hill Way, Escondido, CA
Agency Negotiator: Gary T. Arant, General Manager
Negotiating Party: Crown Castle International Corporation
Under Negotiation: Terms of Lease
RECONVENE
The Regular Board meeting was reconvened at 4:03 p.m. There was no reportable action.
ADJOURNMENT
7. Upon motion by Aleshire, seconded by Haskell and unanimously carried, the meeting was adjourned at 4:08 p.m. to Monday, May 12, 2008 at 2:00 p.m.
ATTEST: ATTEST:
_____________________________ _____________________________
President Secretary