June 22, 2005 - Top Stories
The County is offering free oak trees to any Valley Center resident who wants to move them.
Fair warning: It’s not cheap to move them and there’s no guarantee they will survive once replanted.
According to Brendan McNabb, the Dept. of Public Works (DPW) Project manager for the VC Road widening project, DPW is in the process of moving many small oaks and transplanting them on the side of the road.
Many larger oaks that the County does not have funds to move will be destroyed when the road is widened.
The County will allow any VC resident to move the oaks that are destined to destruction to private property. Some of these oaks are hundreds of years old.
Many are moveable and could beautifully transform a property, especially many of the new houses in VC that have little or no landscaping and no mature trees.
Here's the deal: VC Residents who want to relocate an oak tree to their property must move it or pay to have it moved by Sept. 15, 2005.
The first step is to inform DPW Project Manager Brendan McNabb (McNabbBrendan.McNabb@sdcounty.ca.gov) of how many trees and what size are desired.
The County is not actively offering oak trees but won’t object if individuals move some oak trees that would otherwise be cleared as part of the road project as long as the required tree permits are obtained and the transplanting occurs before early September.
McNabb will identify trees that are available. Then a no-fee Right of Way “tree permit” application must be obtained by calling 858-694-2055 and Faxing the completed form to Fax 858-279-7020 (County Land Development Section).
According to McNabb the approximate costs for moving oak trees can be $2,000-$3000 for small trees. Larger trees can easily run into five figures.
At the same time, many of the trees that are left were not chosen for transplanting because they were not good candidates and may not survive, he said.
Trees can be transplanted by Horizon Tree Transplanting, the firm that is moving the smaller oaks now. The contact person is Rick Reiling (owner) at 760-703-5509.
If you want a beautiful Valley Center oak for your home, don’t delay as it takes several weeks to box an oak and move it safely.
By DAVID ROSS
Water board directors Monday got a crash tutorial in how to raise money for long-term capital projects, about $63 million worth.
The presentation came from the district’s financial adviser Jin Kim of Fieldman, Rolapp & Associates.
The district’s master plan assumes that the number of meters in the district will increase by 2% each year. It calls for three areas of improvement to the water system:
1) Replacement of existing but aging facilities, including pipelines that are more than 40 years old, at an estimated cost of $27,580,000,
2) Upgrade of facilities to meeting existing conditions, at an estimated cost of $13,606,000 and
3) Additional facilities to meet ultimate demands at a cost of $21,774,000.
Because water sales are still predominantly to agriculture, which is very sensitive to water rates, the master plan notes that “care must be taken to find the appropriate balance between debt and cash financing. If the program is too debt heavy and water sales trend downward over an extended period of time, then the board would have no option but to increase water rates on the remaining sales, likely affecting even a sharper decline in agricultural related sales.”
Kim talked about how the district might come up with the money to do these projects, balancing cash and debt financing.
Cash Financing
Cash financing is taking money from district funds to pay for projects.
The advantage is in cost savings from not paying interest. It gives flexibility in that the district preserves borrowing capacity for the future and enhances the district’s credit.
The disadvantages, said Kim, are that the district wouldn’t have enough revenue to pay for the capital needs and would have to draw down reserves and raise rates.
Debt Financing
When it comes to debt financing, which is borrowing at interest to pay for projects, you want to match the type of financing with the project, said Kim.
“You don’t want to pay for something over 13 years that only has a ten year lifetime,” he said. “We don’t recommend issuing bonds that mature in 20 years for computers or trucks.
The advantages of debt financing is that you can finance most capital improvements in a timely manner. You don’t have to wait to accrue cash.
Because it will take many years to pay off, the debt will be paid by those who will benefit from it, instead of current customers.
“It will be a steady draw from the reserves, maintaining a prudent reserve fund balance,” said Kim.
Disadvantages of debt financing is that you have to pay interest on it, at increased cost. The more debt you issue, the more debt capacity you use up, decreasing flexibility.
Kim recommended combining the two forms.
“Plan today so that the district sets a reasonable target for cash and debt financing,” he said. “We don’t want to cash finance capital improvements that would have 30 year lives. Whereas if you acquire new trucks you would want cash financing. There has to be a correct balance of the two.”
Kim talked about various ways to issue debt.
Types of Debt
General Obligation Bonds, require a two thirds vote of the people to authorize. This disadvantage is hard to overcome. Such bonds have the lowest interest rates of all the forms of debt.
Water Revenue Bonds use the district’s revenue to pay it off the debt. They also require a two thirds vote of the people.
Lease Revenue Bonds, AKA certificates of participation (COPs) create a joint powers authority that, in effect leases the district’s facilities back to it. The lease payments pay off the bond.
Since Prop. 13 this has been a very popular form of financing because it doesn’t require voter approval. It gets around the Prop. 13 provisions because COPs are not legally considered “debt”.
“Pretty sneaky!” observed water director Merle Aleshire. “Can I presume that this was created as a way to get around Prop. 13?”
“You can presume that,” observed the district’s counsel, Michael Cowett, who observed that over 90% of public financing in California takes place using COPs.
Public or Private
Bonds can either be public or private offerings.
Public offerings are bonds purchased by everyday folks. They have maturities of up to 30 years for larger amounts of financing.
Private placement bonds are either sold to a limited number of investors or else the district approaches a commercial bank to buy the note. These types of bonds are for smaller amounts of debt and for 15 years or less.
Kim had no specific recommendations on Monday. His presentation was to educate the directors prior to make some decisions further down the line.
Raising charges
In other business, the board voted to increase the capacity charge for the Lower Moosa Water Reclamation (sewer) plant.
According to staff, the increase is due to inflation.
The board voted to adopt a charge of $6,550 per EDU (equivalent dwelling unit). This charge is what a customers pays to hook onto the sewer.
Director Merle Aleshire asked why the cost is so much.
Gen. Mgr. Gary Arant noted that costs for sewer plants reflect economy of scale. And as sewer plants go, the Moosa plant is rather small.
The increase is $100 per EDU.
It is effective Aug. 22, 2005.
“It’s staggering when you think about the costs for a person buying a house,” said Aleshire.
The board also voted to increase the district’s water meter capacity charges. This is the charge that a customer pays to connect to a meter the first time. The average increase works out to be 4%. It is also effective in 60 days.
For the first time in nearly 30 years Valley Center will begin an earnest search for a new superintendent.
Karen Jobe announced her pending resignation last week.
The past two superintendents, Jeff Mulford and now Karen Jobe, pretty much stepped into the position seamlessly, without any serious doubt as to whether they would get the job.
Mulford, who was assistant superintendent at the time, took over without friction from Harry Weinberg, who had led the district for 13 years.
Ten years later Karen Jobe, who had been an assistant superintendent in charge of transitioning the district from an elementary school district into a full K-12 district, and had been with the district for 30 years, was chosen to succeed Mulford, also without much fanfare.
But now, not wanting to promote from within, the district board has begun an actual search for a new superintendent, aided in the search by an old superintendent, Harry Weinberg and his company Leadership Associates.
In a message to her staff following the announcement, Mrs. Jobe said, “For those of us who have been around long enough to have worked with Harry, and for the rest of you who have enjoyed the legacy Harry started in the district in 1977, there could be no more comforting piece of information as the district enters a new era.”
Community members who want to make some comments to Dr. Weinberg about what characteristics he should be looking for in a superintendent are invited to give input at an open forum that will be held Tuesday, June 28, 4:15-5 p.m. at the school district office.
Mrs. Jobe has not left the district “hanging,” as far as a replacement is concerned.
In her statement she said, “I am not retiring; I will be in my position until the right replacement is found and ‘trained. At that time I will request a leave of absence from my position as a teacher for the remainder of the year. I will then be off on a new, as yet undefined, adventure.”
Although she only served as superintendent for two and a half years, Mrs. Jobe has been more than a transitional figure.
She has put her stamp on the district and has helped hammer out an ambitious building program at the high school and overseen the opening stages of the building of the high school theater that will be the legacy both of her and of her immediate predecessor.
She leaves at a quiet time. There are no elections pending for the next year and a half, and so no chance for the choosing of her successor to become a campaign issue.
At the same time whoever succeeds her will inherit a school budget that has already been cut to the bone to reflect the current financial realities in Sacramento.
That person will then be in a position to hand back some of the goodies that have had to be cut from the current budget.
That new superintendent will also be in position to put a new face to the district, which in recent years, has been criticized by some for being too complacent and self-satisfied.
Following an annual tradition, the Valley Center Lions Club served their famous country style pancake breakfast to the graduating senior class of the Valley Center High School. This occurred at 7 a.m. on graduation day, June 17 at the high school.
The Lavender Fields in Valley Center was the spot for Thursday night’s Chamber of Commerce Sundowner. One of the interesting treats served at the Chamber’s monthly mixer was Lavender Lemonade.
The Valley Roadrunner
P.O.B. 1529, Valley Center, CA 92082
Tel. 760.749.1112 Fax 760.749.1688
Website: www.valleycenter.com
Email: editor@valleycenter.com
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