VALLEY CENTER MUNICIPAL WATER DISTRICT
Regular Board Meeting
Monday, April 4, 2005
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 and Haskell. Director Stone was absent. Staff members present were: General Manager Arant, General Counsel Cowett, Director of Finance Jeffrey, Director of Operations Hoyle, District Engineer Jewell, Project Engineer Grabbe, Board Secretary Stetson, Manager of Accounting Pugh and Engineering Services Supervisor Gootee. Spectators present were: Sandy Smith, Citizens for Valley Center Parkway and Dave Ross, Valley Roadrunner Newspaper.
APPROVAL OF AGENDA
1. Upon motion by Haskell, seconded by Polito and unanimously carried, the agenda was amended to add Board consideration of the District’s position concerning the proposed Senate Bill 926 (Florez).
CONSENT CALENDAR
2. Upon motion by Polito, seconded by Haskell and unanimously carried, the following consent calendar items were approved:
• Minutes of the Board meeting held March 21, 2005
• Audit demand check numbers 103342 through 103406
• Treasurer’s Report and Financial Statement for the period ended February 28, 2005
• Board of Director’s request for per diem compensation and reimbursement of expenses
ACTION AGENDA
3. Valley Center Planning Group’s Request for District Contribution Toward Valley Center Road Median Project:
A request had been received from Sandy Smith, formerly of the Valley Center Planning Group, for a contribution from the District to be used for the management and maintenance of the proposed median to be constructed with the County’s Valley Center Road Improvement Project.
General Manager Arant reported that it has been estimated that ten ¾” meters will be needed to serve the median segments and that the total 45,750 sq. ft. of landscaped area will require between 3.3 and 3.9 acre feet of water per year. Currently, the fee for a ¾” meter is $6,601; however, the General Manager noted that the San Diego County Water Authority may significantly increase its meter capacity charge, which is a component of the cost for a meter. Estimates are that the Authority’s meter capacity charge, which currently is $2,461 for a 3/4” meter, may increase to $4,500 to $5,000. It was pointed out that the District’s policy allows for consideration of a reduction of the District’s meter capacity charge (currently $1,870 for a ¾” meter) when a public agency requests a meter and the public agency does not charge the District fees in the normal course of business. General Manager Arant clarified that the County does not waive its fees for the District so this provision would not be applicable. The annual cost of the water at today’s current rate, including the monthly service charge, would range from $5,295 to $5,823.
Sandy Smith addressed the Board explaining that she represents the group, Citizens for Valley Center Parkway, which was formed to raise donations for the proposed Valley Center Road medians. They have been working toward collecting $1.5 million to construct the medians. Recently, they were informed that Transnet funds may be available for the median’s construction and the group’s focus shifted to securing maintenance funds for the medians. Maintenance costs are projected at $30,000 to $50,000 per year and a commitment has been obtained from the San Pasqual Indian Reservation for a contribution of up to $50,000 per year for maintenance over a ten year period. The County has revised its position and will be responsible for overseeing the maintenance of the Valley Center Road medians, but its position to not provide funding for the maintenance expenses remains unchanged. Additional funds for continued maintenance of the medians is being sought due to uncertainties of ongoing costs, particularly water expenses. Ms. Smith asked that the Board consider contributing toward the Valley Center Road median project.
Director Aleshire stated that a group in the Hidden Meadows community has formed to identify a means to secure funding for the ongoing operation and maintenance of the median within Hidden Meadows, which formerly was paid by the owner of the golf course. A contribution of the water consumed for the median’s landscaping has not been pursued as the District’s policy as a public agency has been that there is no
free water. Director Aleshire pointed out that approval of a contribution toward the Valley Center Road median project will establish a precedent, and similar requests for projects throughout the District’s service area would then be forthcoming.
The potential for delivering reclaimed water on the medians was discussed. The installation of purple pipe within the medians has been encouraged to allow for the possible delivery and use of reclaimed water, however, there are several issues that would need to be addressed. These include: containing the reclaimed water on the disposal site, compliance with basin standards and regulatory permits for the disposal of reclaimed water on designated sites. In order for the reclaimed water generated from the Woods Valley Ranch development to be used for irrigation of the proposed Valley Center Road medians, a process to obtain regulatory approval would need to be initiated; i.e. amendment of the existing discharge permits. The Woods Valley Ranch’s permit provides for the reclaimed water to be used for irrigation of the golf course. And, the reclaimed water that will be produced from the Woods Valley Ranch development is not in excess of the irrigation needs of the golf course. However, there is future potential for reclaimed water in the area from other proposed developments. Costs associated with delivering the reclaimed water to the medians would need to be addressed.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the request for a contribution from the District for the Valley Center Road median project was denied and the Board recommended installation of reclaimed water pipelines for possible future delivery of reclaimed water.
4. Amendment to the Administrative Code Governing Budget Policies:
The District’s budget policies, as set forth in Section 115.8 of the District’s Administrative Code in Article 115, Finance Administration, were proposed to be transferred to Article 50, Finance Policies, and the following modifications were recommended:
▪ Rate Stabilization Reserve – Expansion of the definition for the use of the reserve funds to include: “to fill any deficit resulting from the water sales volume falling below projected budget figures”.
▪ Operating Reserve – Changed to establish the intent of the reserve for use in major incidents by including the fund’s use for natural disasters.
▪ Agricultural Rebate Reserve – Language added to set forth use of funds in this reserve “to cover costs associated when agricultural water sales volume exceeds the established agricultural wholesale allotment”.
Upon motion by Aleshire, seconded by Polito and unanimously carried, the following ordinance, entitled:
ORDINANCE NO. 2005-02
ORDINANCE OF THE
VALLEY
CENTER
MUNICIPAL
WATER DISTRICT AMENDING THE ADMINISTRATIVE
CODE SECTION 115.8 TO PROVIDE FOR CHANGES IN
BUDGET POLICIES AND RELOCATION TO SECTION 50.2
was adopted by the following vote, to wit:
AYES: Directors Broomell, Polito, Aleshire and Haskell
NOES: None
ABSENT: Director Stone
5. Resolution Approving Pre-Tax Payroll Deduction Plan for CalPERS Service Credit Purchases:
Adoption of Resolution No. 2005-12 was recommended to adopt CalPERS pre-tax payroll deduction plan for service credit purchases. Adoption of the resolution will allow employees, who elect to purchase CalPERS service credit, the option of said purchase on a pre-tax basis and, therefore, defer income tax liability on their purchase. Staff clarified that providing the pre-tax payroll deduction plan will add no additional administrative work for the District.
Upon motion by Polito, seconded by Aleshire and unanimously carried, the following resolution, entitled:
RESOLUTION NO. 2005-12
EMPLOYER PICKUP RESOLUTION PRE-TAX
PAYROLL DEDUCTION PLAN FOR SERVICE
CREDIT PURCHASES (CONTRIBUTION CODE 14)
was adopted by the following resolution, entitled:
AYES: Directors Broomell, Polito, Aleshire and Haskell
NOES: None
ABSENT: Director Stone
GENERAL MANAGER’S AGENDA
6. Review of Miscellaneous Informational Items:
• Letter Concerning LAFCO’s Apportionment of Costs – General Manager Arant reviewed a letter sent to Mr. Bud Pocklington, Chair of the San Diego County Local Agency Formation Commission. The letter points out the inequities of LAFCO’s method for cost allocation as there are many cities with larger populations than Valley Center but their allotment to LAFCO is less than the District’s, which for Fiscal Year 2005-06 has increased to $21,931 from $17,968 the previous year. Mr. Pocklington was asked to work with the District and other agencies to bring fairness and equity to LAFCO’s cost allocation methodology.
• Metropolitan Water District’s New General Manager – Dennis Underwood has been named Chief Executive Officer and General Manager of the Metropolitan Water District of Southern California. Mr. Underwood was the former Commissioner of the U.S. Bureau of Reclamation and as Vice President at Metropolitan had managed the District’s Colorado River matters. Mr. Underwood is very knowledgeable on agricultural issues and has asked General Manager Arant to be an advisor on agricultural matters.
BOARD OF DIRECTORS’ AGENDA
7. ACWA/JPIA:
Director Aleshire reported that at the ACWA/JPIA Executive Committee meeting on March 29th, insurance coverage provided the Rainbow Municipal Water District was cancelled which becomes effective April 13th.
A request for insurance coverage by the San Luis Rey Water District was denied due to concerns regarding the landfill that is within the service area and that they have an operating agreement with the landfill to provide water.
8. Letter Opposing Senate Bill 926 (Florez):
The Board’s approval of a letter from the District was recommended which expresses the District’s opposition to the proposed Senate Bill 926 (Florez) which would prohibit the District from exporting biosolids from our treatment plant facilities to another county unless an exception is granted by the Regional Water Quality Control Board. Currently, biosolids from our wastewater operations are transported to Riverside County and put to agronomic use, a beneficial use. The passage of SB 926 could result in the District having to transport its biosolids to the county’s landfills which have limited space. The bill has been referred to the Senate Environmental Quality Committee with a hearing date scheduled for April 11th.
Upon motion by Polito, seconded by Haskell and unanimously carried, the Board approved the position of oppose regarding Senate Bill 926 (Florez) and staff was directed to forward a letter indicating this position.
CLOSED SESSION
9. A Closed Session was called by President Broomell at 3:19 p.m. pursuant to:
$ Government Code '54956.8, Conference with Real Property Negotiator
Property: APN 188-240-18
Agency Negotiator: Gary T. Arant, Valley Center M.W.D.
Negotiating Party: County of San Diego
Under Negotiation: Purchase
$ Government Code '54956.8, Conference with Real Property Negotiator
Property: Portion of APN 186-231-16
Agency Negotiator: Gary T. Arant, Valley Center M.W.D.
Negotiating Party: Richard Rozelle and Allen Olson
Under Negotiation: Price
RECONVENE
10. The Regular Board meeting was reconvened at 3:40 p.m. No action was reported.
11. Patric Jewell’s Retirement:
District Engineer Patric Jewell, who is retiring effective April 8th following 26 years of employment at the District, thanked the Board for their leadership which has created an environment for staff to perform at their best and thus resulting in an agency with exemplary customer service and service reliability. Patric Jewell was commended for serving the District since 1979 as District Engineer with great proficiency, honesty and integrity.
ADJOURNMENT
12. Upon motion by Aleshire, seconded by Polito and unanimously carried, the meeting was adjourned at
3:45 p.m.
ATTEST: ATTEST:
____________________________ _______________________________
President Secretary