VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, June 7, 2004
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 Finance Jeffrey, Director of Operations Dacus, IT Specialist Learue, Project Manager Williams and Board Secretary Stetson. Spectators present were: Dr. Bender, Mr. Vice, Mr. Ross and Mrs. Meade.
APPROVAL OF AGENDA
1. Upon motion by Polito, seconded by Haskell and unanimously carried, the consideration of a claim for damages from Mary L. McPherson was added to the agenda for discussion in Closed Session.
CONSENT CALENDAR
2. Upon motion by Polito, seconded by Stone and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held May 17, 2004
• Audit demand check numbers 99064 through 99336
• Resolution No. 2004-18 establishing the appropriation limit for proceeds from taxes for Fiscal Year 2004-05
• Treasurer’s Report and Financial Statement for the period ended April 30, 2004
• Board of Director’s request for reimbursement of expenses and per diem compensation
ACTION AGENDA
3. Public Hearing to Consider Adoption of District-Wide Water Availability Charge for Fiscal Year 2003-04:
Director of Finance Jeffrey explained that a public hearing will be conducted to receive written and oral public testimony concerning the proposed District-wide water availability charge for Fiscal Year 2004-05. 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 the prior fiscal year received notification by direct mail.
The proposed $10.00 per acre/$10.00 per parcel minimum water availability charge will generate approximately $589,000 and will be allocated for revenue debt service ($86,977) with the remainder ($502,023) used for ongoing capital requirements. Said charge has been collected annually since Fiscal Year 1995-1996. The proposed $10.00/acre per parcel minimum water availability charge is the equivalent of a $13.24 per acre foot increase in the selling price of water.
The public hearing to receive input on the proposed Fiscal Year 2004-2005 District-wide water availability charge was opened at 2:04 p.m. Two letters protesting the levy of a water availability charge had been received from Roseanna Upano and Mary Meade which are attached hereto as Exhibit “A”. No comments were received from audience members. The public hearing was closed at 2:06 p.m.
Director Stone noted that the District’s infrastructure needs to be maintained and the revenue derived from the District-wide water availability charge is earmarked for capital/maintenance projects such as pipeline replacements. Therefore, Director Stone stated that he supports adopting the proposed District-wide water availability charge for Fiscal Year 2004-05.
General Manager Arant reviewed that a deferment from the District’s water availability charge is available if the property is a separate parcel 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. A reinstatement of water service for properties that were deferred from payment of the water availability charge requires payment of all deferred availability charges with interest and a 10% surcharge. Deferments from payment of the San Diego County Water Authority and Metropolitan Water District’s water availability charges can also be obtained.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2004-09
ORDINANCE OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ESTABLISHING WATER AVAILABILITY CHARGES
FOR 2004-2005 ON ALL PROPERTY WITHIN THE DISTRICT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
4. Public Hearing on the Woods Valley Sewer Service Area’s Annual Sewer Service Charge:
Director of Finance Jeffrey reviewed that in July of 2002, the property owners within the Woods Valley Sewer Service Area approved the Woods Valley Sewer Standby Fee and Sewer Service Charge. The standby fee and service charge finance the operation, maintenance and replacement of the Woods Valley Ranch Water Reclamation Facility. It was explained that undeveloped property is assessed the standby fee and developed property assessed the service charge of which there are currently 12 developed properties of the 280 parcels within the Woods Valley sewer service area.
The 2004-05 budget for the Woods Valley Ranch Water Reclamation Facility requires revenue of $331,296. As such, the proposed assessment for the Woods Valley Sewer Service Charge is $1,183.20 per EDU or $98.50 per month which is detailed in an annual report listing the parcels and respective sewer service charge.
The public hearing on the Woods Valley Sewer Service Charge was opened at 2:17 p.m. Collection of the sewer service charge through an assessment on the property tax bill was recommended. If a majority protest to the sewer service charge is received, the charge may not be collected on the tax roll, but rather would be billed each month on the water bill. No protests to the proposed Woods Valley Sewer Service Charge to be collected by the County of San Diego with the property taxes were received. The public hearing was closed at 2:18 p.m.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-21
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT PLACING
THE
WOODS
VALLEY
SEWER SERVICE CHARGE
ASSESSMENT FOR 2004-2005 ON PROPERTY WITHIN
THE
WOODS
VALLEY
SEWER AREA ON THE
SAN DIEGO
COUNTY
SECURED PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
5. Resolution to Set the
Woods
Valley
Annual Sewer Standby Fee for Fiscal Year 2004-05:
Adoption of Resolution No. 2004-22 to set the Woods Valley Sewer Service Area Sewer Standby Fee for Fiscal Year 2004-05 was requested. Director of Finance Jeffrey reiterated that in July of 2002, following a public hearing, the property owners within the Woods Valley Sewer Service area approved the Woods Valley Sewer Standby Fee and Sewer Service Charge which finances the operation, maintenance and replacement of the Woods Valley Ranch Water Reclamation Facility. Undeveloped property within the Woods Valley Sewer Service Area is assessed the Standby Fee which ensures that the developer and interim builders pay their share of the cost of the sewer operation, including future replacement.
The budget for the Woods Valley Ranch Reclamation Facility for Fiscal Year 2004-05 requires revenue of $331,296 in which a Standby Fee of $1,183.20/EDU or $98.50 per month will be assessed. The Woods Valley Annual Sewer Standby Fee will be assessed on the property tax bill.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-22
RESOLUTION OF THE BOARD OF DIRECTORS OF VALLEY
CENTER MUNICIPAL WATER DISTRICT PLACING THE
WOODS
VALLEY
SEWER STANDBY FEE ASSESSMENT
FOR 2004-2005 ON PROPERTY WITHIN THE
WOODS
VALLEY
SEWER AREA ON THE
SAN DIEGO
COUNTY
SECURED
PROPERTY TAX ROLL
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
6. Presentation on a Soil Moisture Monitoring Technology Research Proposal:
Dr. Gary Bender, Ph.D., Farm Advisor with the University of California Cooperative Extension, addressed the Board stating that he feels CIMIS and evapotranspiration data is underused for agricultural irrigation scheduling and that it is time to research new technology. Dr. Bender stated that there are new instruments that can measure water in the soil using the concept of radio wave capacitance. Blaine Vice of Soil Technologies has proposed connecting these new soil probes to send a signal to a satellite in which data on the soil’s moisture can be downloaded on a computer.
Studies have documented that 80%-90% of avocado feeder roots are found in the top 8 inches of the soil. The new soil moisture monitoring technology would allow a grower to monitor soil moisture at different depths under the avocado trees, and apply irrigation to wet the soil depths as needed. Water usage could be reduced and stress to the avocado trees avoided if the soil moisture data is monitored enabling the grower to “pulse” shorter irrigation to fill the upper soil layer with water, and avoid wetting the lower soil layers.
Dr. Bender stated he has proposed contracting with Soil Technologies to set-up the soil moisture sensors with the satellite connection to begin monitoring soil moisture at three depths under avocado trees in a commercial avocado grove in Valley Center. If the theory is correct that the common practice of applying irrigation water for 10-14 hours is wetting the lower soil layers, the irrigation scheduling in the block of avocados with the soil moisture-monitoring probes will be changed to “pulse” irrigate in the shallow soil layers on an as-needed basis per the data received from the satellite and downloaded on the computer. Dr. Bender noted that a nearby control block of trees will be irrigated normally. Data collected from both blocks will include fruit yield, fruit size and water usage per tree.
Expenses for the proposed initial research of the soil moisture-monitoring technology are:
Contract for use of soil probe, solar powered battery and
satellite connection $2,300
Labor and miscellaneous equipment $2,700
$5,000
General Manager Arant noted that growers applying “pulse” irrigation techniques with the use of the soil moisture monitoring unit would assist the District in meeting its peak demands from growers. Data collected could be beneficial in defining crop coefficients for an area as it can be affected by various factors including slope aspect, soil, and micro climates. General Manager Arant noted that the District is a signatory agency to the Agricultural Water Management Program and the MOU’s Best Management Practices encourages support of agricultural research for more efficient use of water supplies. He further noted that the District had budgeted $5,000 for agricultural research.
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the Board approved an allocation of $5,000 to be used for the proposed Soil Moisture-Monitoring Technology Research as presented by Dr. Gary S. Bender of the University of California Cooperative Extension.
7. Nomination for the Local Agency Formation Commission Special Districts Advisory Committee:
Nominations are being solicited for eight positions on the San Diego LAFCO’s Special Districts Advisory Committee and one regular member of LAFCO. The Advisory Committee consists of 16 members elected to 2-year terms with one-half of the membership up for election every year. The purpose of the Advisory Committee is to provide advice to LAFCO staff and the Commission on jurisdictional issues.
General Manager Arant, currently a member of the Special Districts Advisory Committee with a term expiring on June 30, 2004, stated he is willing to continue his service on the LAFCO Advisory Committee, but would defer to a member of the Board so desiring to seek election to one of the open seats on the Committee.
Upon motion by Aleshire, seconded by Polito and unanimously carried, General Manager Arant was nominated for one of the eight upcoming vacancies for the San Diego LAFCO Special Districts Advisory Committee.
8. Resolution Adopting a Negative Declaration for the Reidy Creek Pipeline Replacement Project:
Project Manager Williams explained that in compliance with the California Environmental Quality Act, an Initial Study was prepared for the Reidy Creek Pipeline Replacement project, and a Negative Declaration prepared by staff as no significant environmental effects were identified in the Initial Study. The Reidy Creek Pipeline Replacement project consists of the replacement of approximately 1,700 linear feet of existing 10-inch diameter concrete mortar lined and tar wrapped water distribution pipeline with approximately 2,200 linear feet of 12-inch diameter and 900 linear feet of 8-inch diameter polyvinyl chloride pipeline and associated appurtenances.
Per the District’s Local Guidelines for implementing CEQA, the Initial Study for this project has been available at the District’s office for public review. A Notice of Intent to Adopt a Negative Declaration was posted for the required 30-day period at the project site, at the County Clerk’s office and on the District’s bulletin board, as well as mailed to nearby property owners and responsible agencies. No comments have been received. Staff recommended the adoption of Resolution No. 2004-20 approving the Negative Declaration and direct staff to file a Notice of Determination with the County Clerk.
Upon motion by Aleshire, seconded by Stone and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2004-20
RESOLUTION OF THE BOARD OF DIRECTORS OF
VALLEY CENTER MUNICIPAL WATER DISTRICT
ADOPTING A NEGATIVE DECLARATION FOR
REIDY CREEK PIPELINE REPLACEMENT PROJECT
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire, Stone and Haskell
NOES: None
ABSENT: None
9. Overview of the Fiscal Year 2004-2005 Budget:
The proposed Fiscal Year 2004-2005 budget had been reviewed at the April 26th Board meeting in which major projects, notable changes and capital projects were outlined. The budget will be reviewed for consideration of adoption at the June 21st Board meeting. Director of Finance Jeffrey reviewed modifications to the budget as summarized below:
▪ San Diego County Water Authority will increase it’s wholesale water rate for non-agricultural water by $28/ac. ft. effective as of January 1, 2005.
▪ An increase in the water rates of $12.66/ac. ft. for the District’s portion due to the loss of property tax revenue (>$560,000) is proposed to be effective January 1st.
▪ Total capital project funding requested is $6,502,500. This includes the deferment for one year of the expenditure of $400,000 for completion of the Meadows Reservoir No. 2, with an increase in funding proposed for pipeline replacement projects.
GENERAL MANAGER’S AGENDA
10. Review of Miscellaneous Informational Items:
Amendments to Water Service Exchange Agreements with Rincon del Diablo M.W.D. – The amended agreements for water service exchange as adopted on May 17th were forwarded to Rincon del Diablo M.W.D. (Rincon) along with the Board’s request that the District be informed of Rincon’s plans and time frame for providing direct and permanent service to the affected area (Laurashawn) within Rincon’s service area. Rincon has responded noting that they are in the process of initiating a comprehensive water master plan and, upon conclusion of this study, the recommendation for water service to the Laurashawn area will be communicated to the District. Rincon’s Water Master Plan is expected to be completed by January 2005. It was requested, pending the outcome of Rincon’s master plan, that any meter capacity fees collected upon a new connection in the service exchange area be retained in a separate account for possible transfer of the funds in the future. The Board concurred with the request to retain meter capacity fees collected from new meter services in the service exchange agreement area with Rincon del Diablo M.W.D. in a separate fund pending the outcome of Rincon’s Master Plan and resulting decision concerning permanent service to the service exchange agreement area.
District’s 50th Anniversary Open House – Preparations are continuing for the Open House in celebration of the District’s 50th anniversary which will be held Monday, July 12th beginning at 2:00 p.m. Flyers promoting the event will be included in the water bills of June 15th and 30th. Photographs that will depict the District’s formative years and highlights of the last 50 years are being duplicated/enlarged and being prepared for display. Representatives from Metropolitan Water District, the San Diego County Water Authority and Mission Resource Conservation District will be at the Open House.
Senator Ortiz’s Proposed Bill 1272 on Special District Reform – SB 1272 was moved to the suspense file due to its $600,000 appropriation provision for auditing requirements and it had garnered strong opposition due to its limited compensation provisions. ACWA may introduce legislation to address special district reform provisions that its member agencies were in agreement with; i.e. auditing standards, ethical practices, and training requirements. A compensation limit for Board members of $175.00 per diem may be included in the proposed legislation by ACWA.
ACWA Blue Print Task Force – General Manager Arant informed the Board that he has been asked to participate in ACWA’s blue print task force which will be working to develop a white paper to assist policy and legislative leaders secure a reliable water supply for the future.
Support of Local Government Finance Reform Package – Letters will be mailed to legislative representatives expressing support of the governor’s proposal that will transfer special districts’ tax revenue for a 2-year period with the constitutional protection against using local government revenues to balance the state’s budget in the future.
Levee Break in the Sacramento-San Joaquin River Delta – A 500 foot section in the Jones Tract Levee (west of Stockton) in the Sacramento-San Joaquin River Delta broke on June 4th flooding farm fields. Lester Snow, Director of the State Water Resources Department, has stated that the break will have no impact on water deliveries in the State Water Project. The broken levee is being fixed and other levees are being reinforced. This levee break has validated one of the principles of Cal-Fed, the California Bay-Delta Program, which was to restore the Delta and improve the levees.
BOARD OF DIRECTORS’ AGENDA
11.
Sa
n Diego
County
Water Authority’s Board of Directors’ Meeting:
The Authority’s Board of Directors accepted the findings and recommendations of the Member Agency Rate Impact Review Committee concerning the San Diego County Water Authority’s Regional Water Facilities Master Plan which included seawater desalination, increased use of groundwater, a water treatment plant in North County, and increasing the capacity of local reservoirs. The findings of the Committee regarding the proposed Mexican Pipeline were that it is the most expensive and least reliable option. Construction of Pipeline 6 to secure additional water from Metropolitan will be kept as a back-up plan in the event there are unforeseen difficulties in developing the desalination project. If problems arise with the desalination project, it will become imperative to move forward with Pipeline 6 by mid-2006 as construction of the pipeline will take 9 years and the region would experience a significant shortage of supply.
12. Questions Concerning the District’s District-wide Water Availability Charge:
Mary Meade of Paradise Flower Farm addressed the Board noting that she had forwarded a letter to the District opposing the $10.00 per acre water availability charge. (Said letter had been considered during the Board’s deliberation of the proposed District-wide water availability charge which had been adopted earlier in the meeting following the public hearing on this matter). Mrs. Meade apologized for arriving late, and stated she will contact Bill Jeffrey, the District’s Director of Finance, to receive additional information on the water availability charge.
Mrs. Meade asked if consideration has been given to assessing the water availability charge per parcel rather than per acre. She noted that she has a well for her 46 acre farm and, even if no water from the District is used, she is still assessed the $10.00 per acre water availability charge. Mrs. Meade also questioned the assessment of back availability charges plus the interest compounded annually since the deferment of the property from the water availability charge should this option be elected and reinstatement of service desired in the future.
General Manager Arant clarified that property owners within the District’s service area can apply for a deferment of the availability charge if they are not now using and there is no intention to use water from the District. However, the policy established for reinstatement of water service requires the payment of the deferred water availability charges with interest in order to be equitable to the other property owners in the District’s service area who did not receive a deferment. The water availability charge is used for debt service payment and on-going maintenance projects such as pipeline replacements that will ensure a reliable water distribution system. The Water Code stipulates a per acre charge for the water availability charge. It was further clarified that capital projects needed to serve new developments are funded through the meter capacity charges collected upon the purchase of a new meter connection.
Mrs. Meade stated she will contact the District’s finance office to further discuss the District-wide water availability charge.
CLOSED SESSION
13. A Closed Session was called by President Broomell at 3:40 p.m. pursuant to:
• Government Code §54956.8, Conference with Real Property Negotiator
Property: APN 188-240-31, 40-44
Agency Negotiator: Gary T. Arant, Valley Center M.W.D.
C. Michael Cowett, Best, Best & Krieger LLP
Negotiating Party: James Lovell Goodwin and Jill Marie Anderson,
co-trustees of the Goodwin Survivors Trust
• Government Code §54956.9(a), Conference with Legal Counsel – Existing Litigation
Name of Case: Sweetwater Authority, et al. v. Dynegy, Inc., et al.
San Diego Superior Court Case GIC 760743
• Government Code §54956.9(b), Conference with Legal Counsel – Anticipated Litigation
Number of potential cases: 1
RECONVENE
14. The regular Board meeting was reconvened at 4:49 p.m., and the following action was reported:
15. Denial of Claim for Damages:
Upon motion by Aleshire, seconded by Haskell and unanimously carried, the claim for water damages from Mary L. McPherson was denied and the Board approved forwarding the claim to the District’s insurance carrier, ACWA/Joint Powers Insurance Authority.
ADJOURNMENT
16. Upon motion by Aleshire, seconded by Stone and unanimously carried, the meeting was adjourned at
4:51 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary