07-0228_CC_Minutes_Adjourned Regular Meeting2-28-2007 1
MINUTES
FEBRUARY 28, 2007
SAN JUAN CAPISTRANO CITY COUNCIL
AND A
JOINT MEETING OF THE
CITY COUNCIL AND WATER ADVISORY COMMISSION
ADJOURNED REGULAR MEETING
Mayor Allevato called the Adjourned Regular Meeting of the City Council of the City of
San Juan Capistrano to order at 5:30 p.m. in the City Council Chamber.
ROLL CALL
COUNCIL MEMBERS PRESENT: Tom Hribar, Dr. Londres Uso, Mark Nielsen
Mayor pro tem Joe Soto, and Mayor Sam Allevato
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Dave Adams, City Manager; John Shaw, City Attorney; William M.
Huber, Assistant City Manager; and Maria Morris, Deputy City Clerk
CLOSED SESSION (610.85)
A Closed Session was held for the following purposes, as authorized by statute:
a. Pursuant to Government Code section 54956.9, the City Council conferred with
its legal counsel regarding the status of City of San Juan Capistrano v. Brose, et
al.
b. Pursuant to Government Code Section 54956.9, the City Council conferred with
its legal counsel regarding the status of Scalzo Trust v. City of San Juan
Capistrano. (Mayor pro tem Soto abstained)
PUBLIC COMMENT – CLOSED SESSION ITEM b:
Don Vanderland, City resident, opposed construction of a wall on the development
property line as it would disrupt drainage and cause damage to neighboring properties.
He supported the drainage plan prepared by the City’s consultant.
Karen Gardner, opposed construction of a wall and supported maintaining the integrity
of the canyon area with regard to wildlife, water runoff, and slope stability.
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Greg Sykes, City resident, supported preserving rural character of area; efficiently
managing natural spring runoff; and Condition 17 of the planning review and hydrology
study matrix. He recommended an additional easement in the lower part of the
development, adjusting the location and size and design of new retaining walls away
from the middle of the canyon; and providing a soft bottom channel with open sides to
naturally filter water into the City aquifer.
The City Council moved to Closed Session Chambers and continued the meeting.
JOINT MEETING OF THE CITY COUNCIL & WATER ADVISORY COMMISSION
Mayor Allevato called the Joint Meeting of the City Council of the City of San Juan
Capistrano and Water Advisory Commission to order at 7:04 p.m. in the City Council
Chamber. Council Member Hribar led the Pledge of Allegiance and Mayor pro tem Soto
gave the invocation.
ROLL CALL
COUNCIL MEMBERS PRESENT: Tom Hribar, Dr. Londres Uso, Mark Nielsen, Mayor
pro tem Joe Soto, and Mayor Sam Allevato
COUNCIL MEMBERS ABSENT: None
WATER ADVISORY COMMISSION MEMBERS PRESENT: Alan Freisleben (7:30
arrival), Dan Merkle, Jack Zepp, Vice Chairman Tom Lytle and Chairman Lee Goode.
WATER ADVISORY COMMISSION MEMBERS ABSENT: None
STAFF PRESENT: Dave Adams, City Manager; Maria Morris, Deputy City Clerk;
Cynthia L. Russell, Administrative Services Director; John Elwell, Interim Public Works
Director; Michelle Perea, Secretary to the Water Advisory Commission; Peter Salgado,
Senior Civil Engineer; and Eileen White, Recording Secretary
ANNOUNCEMENT OF CLOSED SESSION ACTIONS - None
DISCUSSION ITEMS
1. CITY OF SAN JUAN CAPISTRANO WATER SYSTEM OVERVIEW REPORT
RECEIVED AND FILED. (1050.40)
Description: The City provides Domestic Water and Non Domestic Water
service to its citizens and a small portion of Dana Point. The Domestic Water
System is comprised of the Ground Water Recovery Plant (GWRP), water wells,
reservoirs and associated pipe and stations. The update to the City’s Domestic
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Water Master Plan, adopted in March 2004, provides for capital improvements to
address current and projected demands. The Non-Domestic Water System is
comprised of 3 non-potable water wells (2 inactive), a storage reservoir, and pipe
system. The Non-Domestic Water Master Plan (NDWMP), adopted in 2000,
contemplated ways to meeting the growing demand for irrigation water and
included the expansion of the existing system infrastructure as well as
construction of an Advanced Water Treatment Plant (AWTP) at the existing J.B.
Latham Wastewater Plant in Dana Point. Changes in user demand, the
opportunity to obtain increased capacity from the proposed AWTP, and project
revisions affecting the timing and availability of domestic facilities have resulted
in a need to update the 2000 NDWMP. Staff and engineering consultants have
prepared the updated Conceptual Non-Domestic/Recycled Water Master Plan for
Water Advisory Commission and City Council review. In addition to the update,
staff evaluated 2 alternatives to the use of Recycled Water for Council and
Commission discussion. Staff recommended Council/Commission receive and
file the staff report.
Written Communications: Report dated February 28, 2007, by Peter Salgado,
Senior Civil Engineer.
Presentations:
Paul Jones II, General Manager of the Irvine Ranch Water District, narrated a
slide presentation concerning the Irvine Ranch Water District’s recycled water
program.
Larry Honeybourne, County of Orange Healthcare Agency, discussed public
health and public safety concerns with respect to recycled water production and
use.
Peter Salgado, Senior Civil Engineer, summarized the staff report.
Public Comment:
Arlene Sayre, City resident, was concerned with the groundwater recovery plant
producing dark colored water at her home, which has resulted in high costs for
regular water filter changes and the need to bathe at work. John Elwell, Interim
Public Works Director, confirmed that water can be discolored, but is safe for
drinking.
Mary Eidsvold, City resident, was concerned with costs and impact of long term
construction to build a wastewater recycling plant and low need for non-domestic
water resources. She was concerned with the production of colored water,
chronic water production problems, and reliance on rate payers to fund the
master plan.
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MaryAnn Tucker, City resident, felt the proposed wastewater recycling plant
would be too disruptive with limited benefit. She encouraged the planting of
drought resistant vegetation, hardscape installation, and water conservation
lifestyles.
Dan Glasgow, City resident, was ambivalent toward the project, but cautioned
that imported water may not always be available and suggested further
consideration was warranted.
Richard Garner, Capistrano Beach resident, supported the City’s involvement in
recycled water; reduced dependence on outside sources for water; and the
potential to partner with other interested parties in order to realize the same
benefits with less capital outlay.
Council & Commission Comment:
Council Member Uso suggested spending more resources on water conservation
and challenged staff to resolve the water quality problems from the groundwater
recovery plant. He felt that long term planning of water resources was vital to
reducing future costs, but suggested looking into funding improvements through
a bond, as the improvements would not benefit current rate-payers as much as
future rate-payers. He felt moving toward water independence was important as
outside water resources may not be as dependable and they are impacted by
forces outside of the control of the City.
Council Member Nielsen questioned the accuracy of the projected future water
needs analysis as well as the extensive piping installation required. He felt there
were fundamental problems with the analysis of future water needs which need
to be resolved before moving forward with additional projects.
Mayor Allevato reported a recent meeting with Congressman Calvert, who is
assisting the City obtain Federal grants for our water facilities, and relayed
concerns with the impact of rapid increases in development and competition from
western states which decrease dependability of past water resources. These
issues, in addition to the questionable quality of water being produced by the
Ground Water Recovery Plant, point to a greater need for recycled water plant.
Council & Commission Action: Moved by Mayor pro tem Soto, seconded by
Council Member Nielsen and carried unanimously, 10-0, to receive and file the
staff report.
2. WATER SYSTEM FINANCIAL STRATEGY APPROVED IN CONCEPT.
(1050.20/330.40)
Description: The City’s water system costs include two components, operational
costs and the costs of new infrastructure, improvements, and replacement.
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Increased rates over the past ten years have resulted in a number of programs
designed to replace existing facilities as well as provided for improved overall
system reliability and security. During this same time period the operational costs
have continued to increase along with the cost of imported water by a rate larger
than our annual operational rate increases, resulting in operational revenues
being lower than anticipated costs and deficit operational reserves. Additionally,
the anticipated Non-Domestic/Recycled Water Master Plan, at an approximate
cost of $74 million, will be funded by developer charges, grants, and user rates.
The master plan financing and operational rate needs have been combined to
provide an overall water system financial picture. The projected operational
increase for Fiscal Year (FY) 2007/08 and consistent annual operational
increases are necessary for the next five to seven years to rebuild the water
system’s financial strength. In addition, an increase is necessary to support the
Non-Domestic/Recycled Water Master Plan. The increases combined with the
increase to support the Domestic Water Master Plan result in an increase of 10%
in FY 2007/08 and 8.5% thereafter for the next six years. Staff recommended
Council and Commission review the overall water system financial strategy and
approve in concept the Water System Financial Strategy to support the Non-
Domestic/Recycled Water Master Plan as well as operational costs; and direct
staff to develop a final proposed rate structure for consideration by the Water
Advisory Commission and City Council prior to appropriate notifications and
required public hearings for developer charges and user rates.
Written Communications: Report dated February 28, 2007, by Cindy Russell,
Administrative Services Director.
Presentation: Cindy Russell, Administrative Services Director, summarized the
staff report.
Public Comment:
John Perry, City resident, expressed concern with the proposed water rate
increases. He suggested purchasing water, as this would be less costly and felt
that any proposed water facilities should be financed by a bond rather than on
the rate-payers.
Jack Chestek, City resident, expressed concern with increased water rates and
the cost of the proposed wastewater recycling plant. He felt more funding
sources should be investigated as an alternative to charging rate-payers for
costs.
Richard Gardner, Capistrano Beach resident, felt the City is in a good position
and competitively priced. He suggested financing through property taxes or other
means.
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Council & Commission Comment:
Commissioner Merkle suggested the City Council should not rely on past outside
water resources and needed to be creative in developing a mix of solutions to
address water needs, including solving problems with the groundwater recovery
plant, implementing water conservation programs, and matching water resources
with our needs, including providing a non-domestic water system.
Council Member Uso felt it was important for the City to proceed with unpopular
decisions related to water resources and supported looking at consolidation
alternatives while moving forward with studying new improvements.
Council Member Hribar supported investigating consolidating services with other
water districts as the City has resources to bring to the table.
Council Member Nielsen felt there was a need to move forward, but the City
should also study why our rates are higher than other districts and investigate
benefits of consolidating with other districts for economies of scale and to provide
more diversity at a better cost.
Mayor Allevato supported exploring consolidation but felt there were benefits of
having a stand-alone system.
Dave Adams, City Manager, indicated staff could begin the process of exploring
benefits of consolidating water districts, but would need support from a
consultant to handle this study now.
John Elwell, Interim Public Works Director, reported a need to proceed with the
recycled plant environmental process as this is a condition for the Title 50
funding.
Council & Commission Action: Moved by Council Member Nielsen, seconded
by Council Member Uso and carried unanimously, 10-0, to direct staff to proceed
with operational rate increase of 5% on July 1, 2007 with future annual increases
of 3.5% for 4 years; proceed with the environmental impact report process for
improvements to the water system; delay rate increases related to improvements
pending further study of alternatives; and pursue options to consolidate
operations with other water districts and return to Council for consideration.
ADJOURNMENT
There being no further business, Mayor Allevato adjourned the meeting at 10:50 p.m. to
Tuesday, March 6, 2007, at 5:30 p.m. for Closed Session, and 7:00 p.m. for the Public
Business Session, in the City Council Chamber.
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Chairman Goode adjourned the Water Advisory Commission to Tuesday, March 27,
2007, at 8:00 a.m. in the City Council Chamber.
Respectfully submitted,
__________________________________
MARGARET R. MONAHAN, CITY CLERK
Approved: April 3, 2007
ATTEST:
______________________________
SAM ALLEVATO, MAYOR