MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF ELSINORE VALLEY MUNICIPAL WATER DISTRICT OCTOBER 14, 2004 The Regular Meeting of the Board of Directors of Elsinore Valley Municipal Water District was held at its principal offices at 31315 Chaney Street, Lake Elsinore, California. Directors Present Ben Wicke, President Chris Hyland, Treasurer Kristine Anderson, Vice President George G. Alongi Phil Williams Staff Present Ronald Young, General Manager Phil Miller, District Engineer Joyce Asbell, Deputy Board Secretary/Administrative Secretary John Brown, General Counsel Margie Armstrong, Director of Finance Wally Borchard, Director of Operations David Bell, Human Resources Manager Greg Morrison, Director of Legislative and Community Affairs Others Present Don Zylestra, Kennedy/Jenks Consultant Darren Stroud, Attorney representing Centex Garry Grant Harvey Ryan Public CALL TO ORDER The meeting was called to order by President Wicke at 7:00 p.m., and the Pledge of Allegiance and Invocation immediately followed. APPROVAL OF AGENDA A motion was made by Director Anderson, seconded by Director Hyland and carried unanimously to approve the Agenda as presented.
Minutes October 14, 2004 Page 2 of 8 PUBLIC COMMENTS The meeting was opened to public comments and Garry Grant, 27068 Jarvis St., Perris, voiced his support for re-election of Director Alongi. He was concerned about whether the Board reviewed the running candidates applications. Item I.0 - Consent Calendar Resolution Nos. 04-10-01 04-10-04 Minute Order #3549-3654 A. Approval of Minutes of the Regular Board Meeting of September 23, 2004 B. Approval of Travel Authorizations 1. Julius Ma AWWA Water Quality Technology Conference 2. Keith Martinez EPA & WEF Pretreatment Program Training 3. James Ollerton Municipal Information Systems Association of California (MISAC) Annual Conference 4. Ted Eich EPA Pre-treatment Training 5. Larry Gosin 2005 National Electrical Code 6. Phil Williams ACWA Fall Conference 7. Ben Wicke ACWA Fall Conference 8. Chris Hyland ACWA Fall Conference 9. Ronald Young ACWA Fall Conference 10. Margie Armstrong ACWA Fall Conference 11. Greg Morrison ACWA Fall Conference 12. David Bell ACWA Fall Conference C. Approval of Demands (Finance) D. Investment Report, Receive and File E. Adopt Annexation Fees for 2004 and Authorize Amendment to Administrative Code Sections 1900 and 2600 (Administration) MO #3649 F. Approve of Donation for the San Jacinto River Watershed Council (Administration) MO #3650 G. Approve Additional Funds for Sewer Lateral Installation, Repair, and Replacement in the Canyon Lake Service Area (Engineering) Reso. No. 04-10-01 H. Approve of a Professional Services Agreement For The Regional Recycled Water Master Plan (Engineering) MO #3651 I. Approve Notice Declaring CEQA Exemption for the Island Wells Pipeline Project (Engineering) MO #3652 J. Award of Contracts for Construction of the Island Wells Wetlands Pipeline (Engineering) MO #3653 K. Approve of a Professional Services Agreement for the Groundwater Arsenic Treatment Evaluation and Preliminary Design (Engineering) Reso. No. 04-10-02 L. Adopt a Resolution Confirming EVMWD s Pledge to Utilize Property Tax Revenues for Debt Service (Finance) Reso. No. 04-10-03 M. Adopt the Riverside County Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan (Human Resources) MO #3654
Minutes October 14, 2004 Page 3 of 8 N. Approve Additional Funds for Laboratory Testing Services by Biovir Laboratories, Inc. (Engineering) Reso. No. 04-10-04 Director Anderson abstained on Consent Calendar Item C, Demand Nos. 163561 and 163573 for sources of income. A motion was made by Director Anderson, seconded by Director Williams and carried unanimously to: 1. Approve the Consent Calendar as presented. BUSINESS ITEMS Item II.A - Consider Approval of Joint Community Facilities Agreement (JCFA) between Lake Elsinore Unified School District and EVMWD (Finance) Minute Order #3655 The developers, Palomar Ridge II Ventures, LLC; Rancho Vista I Ventures, LLC; and Rancho Vista II Ventures, LLC, are in the process of developing three projects on two properties totaling approximately 69 acres located in the vicinity between Palomar Street and Catt Road and Twin Flower Ave and Fox Ridge Lane in the City of Wildomar. The property owner desires to develop 255 residential homes on Tracts 31331, 31499, and 31353. The developers have been working in conjunction with the Lake Elsinore Unified School District, who requested that EVMWD approve and participate in the Joint Community Facilities Agreement (JCFA), which is a requirement for the formation of a Community Facilities District (CFD) under the Mello-Roos Community Facilities Act. This agreement proposes to provide for payment of approximately $2,499,000 to EVMWD for water and sewer connection fees and Lake Elsinore Unified School District school fees. Ron Young stated that the Lake Elsinore Unified School District, at the request of the developer, is acting as the lead agency in the formation of LEUSD CFD 2004-3, with an anticipated bond issuance of $5,559,000. About $2,500,000 of these funds will be for the EVMWD water and sewer connection fees. In order to ensure that the special tax assessment pertaining to this CFD is disclosed to prospective buyers of these future homes, contained within the agreement (Reference Section 4.10) is a disclosure requirement that conditions the property owner(s) and its successors to disclose the special tax information, including the length and amount of the special tax (Reference Exhibit C of the agreement). Director Alongi voiced his opposition to the CFD as he believes people will pay more fees. He stated that CFD s do not provide quality service at a reasonable
Minutes October 14, 2004 Page 4 of 8 price. Director Anderson asked if Exhibit D-1 is a sample of what the homeowner will receive. Mr. Young stated that it will be and explained that this is the first JCFA that will not only be included in the documentation, but also on the showroom floor. Director Hyland also commented that there is a different perspective by some people who know a lot about CFDs. She asked if this was solely EVMWD s and Director Anderson responded that it is the School District s. Director Hyland asked if this was 3 to 1 and Director Anderson answered yes. A motion was made by Director Anderson, seconded by Director Williams and carried by majority vote with Directors Alongi and Hyland opposing to: 1. Approve the Joint Community Facilities Agreement (JCFA) between the Lake Elsinore Unified School District (LEUSD) and EVMWD relating to LEUSD CFD 2004-3 for the Palomar Ridge and Rancho Vista I & II Projects; and, 2. Authorize the General Manager to make any necessary nonsubstantive changes and execute the agreement. Item II.B - Consider Approval of Addendum to the Ramsgate Specific Plan EIR (Engineering) Resolution No. 04-10-05 The City of Lake Elsinore adopted the original Specific Plan and EIR for the Ramsgate Development in June 1984 and the First Amendment in December 1989. It was in this Amendment and specifically the accompanying Final Supplemental EIR, that the Ramsgate Water and Sewer Master Plan was presented. Minor changes have been made to the Plan, which include changes in the locations of, sizes of or lengths of Sewer/Water Mains, Booster Pump Stations, Pressure Reducing Stations, and Reservoirs. At the October 6 Study Session Meeting, the Board was presented with information describing the purpose for Addendum No. 3 and the environmental impacts and issues which were analyzed and considered to determine the overall affects on the environment. The degree of impact resulting from changes made to the Ramsgate Specific Plan was determined to be the same or less than those previously analyzed. An EIR Addendum was produced to evaluate and analyze the impacts of the modifications to the Specific Plan. Adoption of the Addendum by the Board, as the responsible agency, would satisfy CEQA requirements to effect the modifications to the Plan. Ron Young explained that the Addendum includes the extent and changes in the refined master planning effort to optimize the crossing I-15 corridor and bringing
Minutes October 14, 2004 Page 5 of 8 water and sewer facilities back and forth to serve a much larger area. The resolution describes the changes and adopt the addendum to the EIR. Director Alongi stated that he had conferred with the District s attorney, because he was concerned there may be a conflict of interest with his involvement with another project within 3 feet. of this project and was assured by legal counsel that voting for this item is not a conflict of interest. A motion was made by Director Williams, seconded by Director Alongi and carried unanimously to: 1. Adopt Resolution Approving Addendum No. 3 to the Final Supplemental Environmental Impact Report for the Ramsgate Specific Plan. GENERAL MANAGER S REPORT Ron Young informed the Board that EVMWD customers would be receiving their bills in the new format starting this week. He showed the Board a bill stuffer that would be included with the bill to explain the information on the bill. Mr. Young also showed that on the back of the bill stuffer there is information regarding the customer s payment requirements. He also informed the Board that the EVMWD website will be ready in a couple of months for customer interaction on the internet. Mr. Young announced that the EMWD meeting was cancelled for this month. He also announced that he would be participating in the CASA Executive Retreat and would not be able to make the next Board Meeting, if that is acceptable to the Board. LEGAL COUNSEL S REPORT Mr. Brown had nothing to report. COMMITTEE REPORTS Director Alongi gave the CRC report and details will be in the next Board Packet for the directors to ratify. Director Anderson stated that all the water bottles had been given out and Greg Morrison stated that 40 pallets would be coming in on the 18 th. Director Alongi stated that the CRC is still giving out more water than money. Mr. Young stated that EVMWD is going to be using their own water in the next batch of water bottles. Director Williams stated that Winthrow Elementary School is having a harvest festival in November and asked when their request for water is needed. Director Alongi responded that Mary Brown sends out a letter and explains that all requests need to be made in writing 30 days prior to their event. Director Alongi stated that the CRC meets the first Thursday of the month, but advised contact with Mary Brown.
Minutes October 14, 2004 Page 6 of 8 PUBLIC COMMENTS The meeting was opened to public comments and Garry Grant, 27068 Jarvis St., Perris, stated that he saw a report from LAFCO regarding the sources of water for EVMWD. He said it showed EVMWD receives 50% from the aquifer and 50% is from pipelines pumped into the area. Mr. Grant stated that he believes the report was not accurate, because it did not state the 12% coming from surface water of Canyon Lake. Mr. Grant further stated his concern about the water from Canyon Lake being affected by human sludge being applied to the land. He requested that the Board review the AB2934, as it is an important issue. DIRECTORS COMMENTS Director Hyland commented that she thought the meeting with FERC was excellent. Director Alongi requested to receive a copy of the letter indicating that the pilot program for the recycled water for Lake Elsinore would be cancelled on December 1 st. Mr. Young explained that the permit indicates an expiration date of December 1 st. Director Alongi asked if the District cannot meet certain requirements of the water permit, would the permit not be renewed December 1 st. Mr. Miller explained that EVMWD met with the Regional Water Quality Control Board earlier this week and conditions were worked out to extend the pilot program. There will be a short time where EVMWD will not be able to discharge the recycled water due to the timing of their Board Meeting. Mr. Miller again stated that an agreement has been worked out and will be discussed at the next Study Session. Director Alongi asked why the Board was not made aware of the latest status of this situation. He further explained that he had received a call from a newspaper reporter and was not aware there was something new developing from what he was told last. Mr. Young asked Greg Morrison if he had received a call from the newspaper reporter, Will Bennett and Mr. Morrison answered that he had. Mr. Morrison clarified that Mr. Bennett asked if the pilot program for the discharge permit was being cancelled and Mr. Morrison told him that it was not being cancelled; it was expiring and EVMWD is in negotiations for renewal of the permit. Mr. Young stated there is a negotiation with the Regional Water Quality Control Board (RWQCB) that is in process and is not completed. He further stated that the Board will have to make some decisions with some risk regarding the water supply for Lake Elsinore using recycled water. Mr. Young informed the Board that it is staff s plan to bring it to the next Study Session to provide all of the ramifications. Director Alongi stated that he is not interested in the technical details. He explained that he just wanted to know that there is a negotiating platform with the RWQCB. Director Hyland stated that she and also received a call on this issue and pointed out that she would have liked to know beforehand that staff was already in negotiations with the RWQCB. Mr. Young pointed out that the meeting this week was because EMWD s permit to discharge recycled water is up for renewal November 17, 2004 and will not include putting
Minutes October 14, 2004 Page 7 of 8 recycled water into Lake Elsinore. He explained that EMWD is renewing their normal discharge permit and will be amending it in the future to include recycled water. Director Alongi requested to discussion of a policy for bill stuffers and mailers at the next Study Session. He is concerned that the District is getting involved in issues that could lead to unnecessary legal problems. Director Anderson requested that a list of all billing stuffers for all nonprofit organizations done in the past be provided at the Study Session. She pointed out that TIP had done a bill stuffer through the District last year and received eight new volunteers, which showed the positive view. Director Anderson responded to Garry Grant s comment regarding body contact to the water in Canyon Lake and stated that body contact has been occurring in Canyon Lake since 1956 at the same time the Lake has been used for drinking purposes. Also, Director Anderson addressed Mr. Grant regarding candidates running for election to the Board and stated that anyone can run for the Board. She further explained that it is up to the constituents to vote on whom they choose to represent them. Director Williams commented that he is pleased with the handout explaining the new billing statement and said it was quite timely. Director Anderson pointed out that the area code needed to be changed to 951 before sending it out. Director Williams stated that he had communicated with one of his constituents this week that had worked for SCE and had experience with their shutoffs. She was confused with her bill, her water got shut off, and she told him various reasons why she did not like the billing statement. He hopes that this new statement will be less confusing. Director Williams also stated that at the EDC Luncheon today, some individuals from the school board apologized for the way the meeting was handled at their school-site the other night. They explained that they were misinformed as to what the meeting was and how it was to be conducted. CLOSED SESSION The Board adjourned to Closed Session at 7:39 p.m. to discuss: A. PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE - pursuant to Section 54957 B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS: (Per Government Code 54956.8) Property: APN 387-222-041; Negotiating Parties: Ron Young, Elsinore Valley Municipal Water District & DSDK Enterprises; Price under negotiation The meeting reconvened at 8:09 p.m. and there were no actions to report.
Minutes October 14, 2004 Page 8 of 8 ADJOURNMENT There being no further business, the meeting was adjourned at 8:09 p.m. ATTEST: W. Ben Wicke, President of the Board of Directors of the Elsinore Valley Municipal Water District Joyce Asbell, Deputy Board Secretary to the Board of Directors of Elsinore Valley Municipal Water District