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HomeMy WebLinkAbout1978-03-30 - Board of Directors Meeting Minutes1400 March 30, 1978 The adjourned meeting of the Board of Directors of the Yorba Linda County Water District was called to order by President Knauft at 8:30 a.m. in the offices of the District on Plumosa Drive. Directors present and answering the roll call: Roy Knauft, Howard Lindow, Art Korn and Fred Clodt. Director Merwin Wagner absent. Also present Ralph Shook general manager, Jean Mathews secretary, Richard Davalos project manager, Chuck Hobbs consultant, Bob Seamans and DuWayne Lidke from James Montgomery, Art Kidman attorney, Tom Marches~:_rrQm S and S Construction, Bob Ryan from Alex Bowie's office and Dave Cogan John Wertin's attorney. President Knauft asked if there were any corrections to the minutes, Mr. Clodt had a question regarding the Resolution to appoint an as- sistant secretary. Mr. Kidman explained that it was merely to save time carrying documents back and forth for signature. President Knauft hearing no objections ordered the minutes approved as written and mailed. Discussion regarding the resolution for Merwin Wagner, retiring director. Moved by Director Knauft seconded by Director Clodt to approve RESOLUTION NO. 78-17 entitled: RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA COUNTY WATER DISTRICT RE: MERWIN WAGNER's RETIREMENT. This resolution will be read at his retirement dinner on April 3. Roll call vote: Ayes, Directors Knauft, Lindow, Korn and C1odt. Director Wagner absent. Noes, none. Adopted this 30th day of March 1978. Art Kidman explained the Resolution regarding the tax rate which phases out the general fund C 0 and M) gradually to a zero (-0-) tax rate in 1982-83. Discussion. Director Korn and Director C1odt said they felt we should not go to zero but should retain something for fire hydrant program inasmuch as it is a service not related to the water rate and water consumers. Attorney Kidman asked for an executive session for attorney-client privilege conference. Moved by Director Lindow seconded by Director Korn to go into executive session at 8:50 a.m. Moved by Director Lindow seconded by Director Korn to go back into reg- ular session of the meeting. Motion carried. President Knauft called the meeting back to order at 9:05 a.m. All directors present except Mr. Wagner, also present Ed Hyland and Ray Fores from Stone and Young- berg. Moved by Director Lindow seconded by Director Knauft to adopt RESOLUTION NO. 78-18 entitled:RESOLUTION OF THE BOARD OF DIRECTORS OF YORBA LINDA COUNTY WATER DISTRICT DECLARING THE POLICY OF YORBA LINDA COUNTY WATER DISTRICT WITH RESPECT TO FUTURE DISTRICT TAXES FOR GENERAL FUND PURPOSES. Director Knauft asked if there was any further discussion. Roll call vote: Ayes, Directors Knauft, Lindow, Korn and Clodt. Noes, none. Absent, Director Wagner. Abstain, none. Adopted this 30th day of March 1978. 1401 March 30, 1978 (continued) Moved by Director Lindow seconded by Director Korn to direct staff to study the fire protection increment of our revenue and make re- commendations regarding future financing within 60 days or before the adoption of next year's budget. Motion carried unanimously. Art Kidman explained the pre-annexation agreement on the Bryant pro- perty and the Resolution which orders approval and execution of the annexation agreement. Discussion. Suggested there might be some minor changes on the resolution and that it should be re read care- fully but no major changes were needed. Moved by Director Lindow seconded by Director Clodt to adopt RESOLUTION NO. 78-19 entitled: RESOLUTION OF THE BOARD OF DIRECTORS OF YORBA LINDA COUNTY WATER DISTRICT APPROVING AND ORDERING EXECUTION OF ANNEXATION AGREEMENT. With the addition of the phrase "in substantially the form presented" in Section 2 page 1 last sentence in the paragraph. Mr. Knauft asked if there was any comments or discussion by interested parties in the audience. Dave Cogan John Wertin's attorney thanked the Board and staff for the excellent way the meetings had been con- ducted and he also stated that the discussion had been very frank and sometimes heated but he felt a very good understanding had been arrived at in the agreement. Roll call vote: Ayes, Directors Knauft, Lindow, Korn and Clodt. Noes, none. Absent, Director Wagner. Abstain, none. Adopted this 30th day of March 1978. Chuck Hobbs spoke regarding the negotiations and meetings in the past weeks and commented that there were two reasons for the speed with which all this needed to be accomplished. The first was that the facilities were needed to be installed in the ground in three months because of the time table of the developers, the second reason being the Jarvis initative and he also recommended the Board approve the agreement with Bryant Ranch. Moved by Director Lindow seconded by Director Clodt to adopt RES- OLUTION NO. 78-20 entitled RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA COUNTY WATER DISTRICT DETERMINING AND ORDERING ANNEX- ATION NO. 78-1 TO THE YORBA LINDA COUNTY WATER DISTRICT. Roll call vote: Ayes, Directors Knauft, Lindow, Korn and Clodt. Noes, none. Absent Director Wagner. Abstain, none. Adopted this 30th day of March, 1978. Mr. Kidman said that the maps and description would be added by LAFCO to the Resolution 78-20 when the Boundary Section had completed their work. Art Kidman also said that the engineering staff were to be complimented on the excellent manner in which they had prepared the maps and description and even correcting them and getting them back to the boundary section with the changes. He also stated that the Boundary Section had been very cooperative or this could never have been done in this time frame. March 30, 1978 (continued) 1402 Moved by Director Lindow seconded by Director Korn approving the audited bills in the amount of $1143.24 on checks 5773 and 5774. Motion carried unanimously. Moved by Director Lindow seconded by Director Clodt carried un- animously all directors are hereby authorized to leave the State of California for either business or personal reasons between now and the next regular meeting of the Board of Directors. President Knauft declared a recess at 9:50 a.m. Meeting reconvened at 10:00 a.m. with all directors present except Director Wagner. Mr. Knauft said that he had received a copy of a letter from Mr. Bowie's office which made several statements that were not true, statements purported to be made by Mr. Knauft at a Board meeting. Mr. Knauft addressed his remarks to Mr. Ryan who was present from Mr. Bowie's office and who had written the letter in question. Mr. Ryan said that it was his misunderstanding of remarks made in the meeting and he was sorry that the error had been made and he ap- ologized. Mr. Knauft also stated that we had received three letters from Mr. Bowie's office each suggesting a different type of financing. General manager Ralph Shook said he would turn the meeting over to Project Manager Richard Davalos regarding the preliminary plan of works and his reports. Mr. Davalos asked DuWayne Lidke to report on the engineering and the financial would be reported on by Stone and Youngberg. DuWayne Lidke had two maps of Annexation 78-1 area # 1 the entire area without exceptions then Sheet # 2 showed the area with except- ions: Exception "A" being the strip along the river going to Anaheim showing the boundary as the center of the river. Exception "B" the Getty Oil Property and "C" the Long property both of which will be in Annexation 78-5. Exception "D" the Brannon property and Except- ion "E" the Travis property which is Annexation 78-3 and 78-4. Mr. Lidke gave a review of the conceptual planning, sources of water, size of Diemer Intertie, area that could best be served by the District, establishing zones of service, zone 4 and below all could be gravity flow, zone 5 and above all pumped or boosted. He explained the cost had been extrapolated out through 13 years of construction, with an 8% built in inflation factor, this is so that the right amount of money will be available when the construction is started This started as one improvement district and now has been changed to two improvement district, an improvement district for the eastern area 1403 March 30, 1978(continued) to the Bryant Ranch and a spearate one for the Bryant Ranch. Total cost for the Western Improvement District $22 million, the Bryant Ranch Improvement District $27 million which includes the cost of providing a parallel line, the 22 million will excalate to 26 million over the construction period of 20 years, the Bryant improvement dist- rict's $27 million will escalate to $40 2 million. Mr. Hobbs interjected that the highest amount would have to be auth- orized because this was a one time bond authorization, however bonds will not be sold until needed and the people are protected by the Federal Government which will not allow more bonds to be sold than are used in the construction. Ralph Shook said there was one more factor that he had not told Mr. Lidke about and that was the reservoir sites that would be needed on the Bryant property and these would still have to be added. Richard Davalos spoke regarding the sale of bonds and change in construction schedule timing. Ray Fores spoke to the Board and explained the charts he passed out. His figures did not exceed DuWaynes but were a lettle less. Dis- cussion, Mr. Fores explained that they had taken a very conservative approach at all times. Mr. Knauft asked regarding insurance and if we were able to obtain insurance if it would lower the interest rate. Mr. Fores and Mr. Hyland said that was quite possible and the District should attempt to qualify for insurance. Mr. Shook and Mr. Hobbs also had questions. Mr. Davalos handed out a sheet showing the cash flow if acreage fees were charged and the number of homes in a particular year, acreage charge, cost per home etc. Discussion, Mr. Korn said he did not want this chart to be taken for an alternate financing method but merely for what it was, showing year by year and not an average over a longer period of time. Time table to complete the I.D. by April 6, 1978, a June 13th special election before the Jarvis Initative goes into effect on July 1, 1978. Director Knauft asked Mr. Ryan if their annexations 78-3 and 78-4 would be completed by April 6th and Mr. Ryan stated that he expected it to be completed. Mr. Ryan thanked the Board and the Staff for their cooperation in get- ting the material to Bowie Attorney Inc. office as soon as they had material to give out. Moved by Director Korn seconded by Director Clodt at 11:30 a.m. to adjourn to April 6th at 8:30 a.m. Jean E. Mathews, Secretary Ile