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