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HomeMy WebLinkAbout2009-09-10 - Board of Directors Meeting Minutes 2009-128 ' MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING September 10, 2009 1. CALL TO ORDER The September 10, 2009 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 6:30 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT John W. Summerfield, President Ken Vecchiarelli, General Manager William R. Mills, Vice President Pat Grady, Asst General Manager Paul R. Armstrong Art Kidman, General Counsel Michael J. Beverage Steve Conklin, Engineering Manager Ric Collett Lee Cory, Operations Manager ' Gina Knight, HR Manager Cindy Navaroli, Interim Finance Director Stacy Bavol, Customer Svc Supervisor Cindy Botts, Management Analyst Annie Alexander, Executive Secretary 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Vecchiarelli stated that Item Nos. 10.1., 10.7. and 12.1. would need to be modified as there were changes in a few meeting dates and/or times. Discussion of the changes made occurred when these items were addressed later in the meeting. 5. PUBLIC COMMENTS President Summerfield opened the meeting to public comments not related to the proposed water rate increase. Richard White, resident, addressed the Board regarding the District's inspection of fire hydrants and the Orange County Fire Association's (OCFA) requirement for hydrant flow testing for new construction on existing homes. Mr. White questioned why he was required to pay a fee for a hydrant flow test in order to construct an addition on his home. Mr. Vecchiarelli explained that while the District does inspect and perform maintenance on each of its fire hydrants on an annual basis, it does not perform hydrant flow tests. These tests are required by OCFA for new home construction or when a homeowner decides to build an addition on to an existing home. The 2009-129 District's involvement in hydrant flow testing is limited to witnessing the test only. ' No fees paid to OCFA or the contractor performing the test are received by the District. Mr. Vecchiarelli then stated that for the record, the District's water distribution system is not designed to provide water to all hydrants at the same time. Mark Shock, resident, addressed the Board and requested that in light of the Orange County Grand Jury's findings, the District consider the Citizen Advisory Committee's (CAC) recommendation to hold its meetings in the evening. Roger Schafer, resident, addressed the Board and asked if it was the appropriate time to comment on the proposed water rate increase. President Summerfield explained that the meeting would be open to public comments regarding the rate increase during the public hearing. 6. PUBLIC HEARING 6.1. Public Hearing to Consider Increasing and Modifying Water Rates A. President Opens Public Hearing President Summerfield opened the public hearing at 6:50 p.m. ' B. Secretary Provides Proof of Public Hearing Notification and Correspondence Mr. Vecchiarelli presented the Board with proof of the public hearing notifications and related correspondence. C. Report by General Manager Mr. Vecchiarelli provided a brief overview of the written correspondence received. Some of the correspondence included helpful suggestions which will be presented to the CAC and Board of Directors for possible further action. Mr. Vecchiarelli then provided a brief PowerPoint presentation summarizing the FY 2009/10 Budget, the 2009 Water Rate Report and the reasons for the proposed rate increase. D. Public Testimony Roger Schafer, resident, addressed the Board regarding the calculations in the public notice. Mr. Schafer questioned why information regarding the cost of groundwater compared to import water was not included in the notice. Mr. Vecchiarelli responded to Mr. Schafer's question and provided an ' overview of the District's cost for groundwater and import water which was also included in the 2009 Water Rate Report. 2 2009-130 ' Bob Klems, resident, addressed the Board and stated that he felt that the report regarding the proposed rate increase was incomplete. Mr. Klems further stated that the District's financial statements indicated an increase in cash reserves. Mr. Klems then expressed his disappointment in a District well being funded by MWD and the time taken to get the Santiago Booster Pump Station running again after the Freeway Complex Fire. Ms. Best, resident, addressed the Board and commented on the cause of the California water crisis. Ms. Best further stated that this was an El Nino year and questioned who would benefit from the proposed rate increase. Ms. Best also suggested that the District demand that Sacramento lift current water restrictions. Greg Meyers, resident, addressed the Board and stated that he was a member of the CAC. Mr. Meyers then stated that the CAC spent many hours reviewing the District's budget and proposed water rate increase and that the CAC was in favor of a rate increase and implementation of a tiered rate structure. Dan Chaney, resident, addressed the Board and stated that it was his opinion that the proposed water rate increase was being considered as ' a result of the conservation efforts being made by District customers. Bill Taraschi, resident, addressed the Board and stated that he felt that local government believes its customers have an unlimited amount of money. Mr. Taraschi expressed his concern for the lack of financial incentives for District customers to make use of current technology to assist with water conservation. Mr. Taraschi also requested that any surplus realized from the rate increase be returned to District customers. Jim Kloman, resident, addressed the Board and stated that if the District raised its rates he would be required to raise costs for his personal business. Mr. Kloman also stated that he felt it was the District's responsibility to push back at the agencies responsible for causing the rate increase. Dave Peairs, business owner, addressed the Board and spoke against the implementation of a tiered rate structure stating that it caused higher water users to subsidize lower water users. Mr. Peairs stated that he was in favor of a flat water rate. 3 2009-131 Rosemarie Sauer, resident, addressed the Board and spoke against ' the implementation of a tiered rate structure. Ms. Sauer also expressed her concern regarding the reporting system for water conservation ordinance violations. Ms. Sauer then questioned the reason why commercial and agricultural customers were not included in the proposed rate increase. Mr. Vecchiarelli clarified that the District did not currently have an agricultural water rate. Bernie Marston, resident, addressed the Board and stated that the tiered rate would unfairly impact large property owners. Mr. Marston then spoke in favor of a flat water rate increase over implementation of a tiered rate structure. Richard White, resident, addressed the Board and stated that he did not see a provision in the proposed rate increase for fixed or low income customers. Mr. White then questioned what costs were being borne by new development and expressed his disappointment in observing golf courses and school grounds being watered during the day. Rob Johnson, resident, addressed the Board and spoke against the ' implementation of a tiered rate structure as it would significantly impact larger families and large property owners. Mr. Johnson then recommended that the District consider lot size and historical water usage when considering future rate increases. Ron Johnson, resident, addressed the Board and questioned what efforts had been made to investigate the increase being passed on to the District from its water providers. Mr. Johnson asked if the District had to accept the providers' price increases or if there was a way to mitigate the cost. Mark Shock, resident, addressed the Board and requested that each Director provide a verbal explanation for their vote on the proposed water rate increase. President Summerfield stated that any explanation provided would be left up to each individual Director. Richard Bogda, resident, addressed the Board and stated that he was a member of the CAC. Mr. Bogda then spoke in favor of the proposed water rate increase. Mr. Bogda also stated that he felt additional effort ' could be made to increase water efficiency using available technology. 4 2009-132 ' E. President Closes Public Hearing President Summerfield closed the public hearing at 8:24 p.m. A brief recess was declared at 8:25 p.m. The meeting reconvened at 8:33 p.m. F. Discussion President Summerfield then invited each of the Directors to comment. Director Beverage thanked those in attendance for coming to the meeting and provided a brief overview of the current water supply situation and its affect on the District. Director Beverage stated that he was in favor of the flat water rate increase and that the tiered rate structure should be considered at a later time. Director Mills commented on the state wide drought, problems with the Delta and progress with water reclamation and desalination projects. Director Mills stated that he was in favor of the tiered rate structure and implementation of overage level water rates. Director Armstrong commented on the loss of property tax as a source ' of income and the purpose of the CAC. Director Armstrong stated that he was not in favor of the tiered rate structure. Director Collett commented on the difficulties faced by local agencies when costs are passed on to them from providers as well as rebates previously made available to District customers for the installation of low flow devices. Director Collett stated that he was in favor of the tiered rate structure but would not support it at this time as he felt it needed to include all customer classes. Director Collett further stated that he was in favor of the flat rate increase and the implementation of overage level water rates. President Summerfield stated that he was in favor of the tiered rate structure but would not support it at this time. 6.2. Resolutions No. 09-15, 09-16 and 09-17 of the Board of Directors of the Yorba Linda Water District Amending Resolution No. 07-17 and Setting Water Rates Effective September 14, 2009 On a motion by Director Collett, seconded by Director Armstrong, the Board voted 4-1 on a Roll Call with Director Mills voting No to approve ' Resolution No. 09-15 Setting Water Rates Effective September 14, 2009 and Amending Resolution No. 07-17. 5 2009-133 On a motion by Director Mills, seconded by Director Collett, the Board ' voted 1-4 on a Roll Call with Directors Armstrong, Beverage, Collett and Summerfield voting No to approve Resolution No. 09-16 Setting Water Rates for Single Family Residential Service Effective September 14, 2009 and Amending Resolution No. 07-17. Motion failed. On a motion by Director Mills, seconded by Director Beverage, the Board voted 5-0 on a Roll Call to approve Resolution No. 09-17 Setting Water Rates Immediately Effective Upon the District Exceeding Established Water Allocation Limits and Temporarily Amending Resolutions No. 09-15 and 09-16. Mr. Vecchiarelli then stated that Resolution No. 09-17 included a sunset clause and would no longer be in effect beginning July 1, 2010. 7. CONSENT CALENDAR On a motion by Director Mills, seconded by Director Armstrong, the Board voted 5-0 to approve the Consent Calendar. 7.1. Minutes of the Regular Board of Directors Meeting Held August 27, 2009 Recommendation: That the Board of Directors approve the minutes as presented. ' 7.2. Minutes of the Special Board of Directors Meeting Held September 2, 2009 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Payment of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $888,271.93. 7.4. Progress Payment No. 1 for the Lakeview Sewer Lift Station Recommendation: That the Board of Directors approve Progress Payment No.1 in the amount of $2,925.00 to Schuler Engineering Corp. 7.5. Progress Payment No. 1 for the San Antonio Pressure Reducing Station Upgrade Project Recommendation: That the Board of Directors approve Progress Payment No. 1 in the net amount of $53,156.25.00 to Paulus Engineering, Inc. for construction of the San Antonio Pressure Reducing Station Upgrades Project, Job No. 200901. 6 2009-134 7.6. Progress Payment No. 16 for the Highland Reservoir Replacement Project Recommendation: That the Board of Directors approve Progress Payment No. 16 in the net amount of $257,542.74 to Schuler Engineering Corporation and 10% retention of $28,615.86 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 7.7. Approval of Change Order No. 3 for the Highland Reservoir Replacement Project Recommendation: That the Board of Directors approve Change Order No. 3 in the amount of $96,272.43 and 35 additional calendar days to Schuler Engineering Corporation for construction of the Highland Reservoir Replacement Project, Job No. 200309. 7.8. Grant Deed to SWEPI LP for 0.025 Acres on Lakeview Avenue Recommendation: That the Board of Directors authorize the President and Secretary to execute a Grant Deed, subject to approval as to form by Legal Counsel, to relinquish to SWEPT LP approximately 0.025 acres that was acquired in a land swap with Bastanchury Holding, LP (Hover Development Co.) for the exchange of property at the Lakeview Reservoir and Booster Pump ' Station site. 8. ACTION CALENDAR 8.1. FY 2009/10 Budget Amendment Mr. Vecchiarelli explained that as a rate adjustment had been approved, the revenue statements in the District's FY 2009/10 budget would need to be amended accordingly. On a motion by Director Beverage, seconded by Director Mills, the Board voted 5-0 to receive and file the addendum to the FY 2009110 Budget. 9. REPORTS. INFORMATION ITEMS AND COMMENTS 9.1. President's Report None. 9.2. Directors' Reports Director Mills requested staff to provide the Board with a report regarding the attendance history for morning versus evening Board meetings. Director Mills also commented on the upcoming water conservation workshops being held in conjunction with the Fullerton Arboretum. Mr. Vecchiarelli stated that information regarding the workshops had been made available on the District's website and customer newsletter. 7 2009-135 9.3. General Manager's Report ' Mr. Vecchiarelli reported that ACWA/JPIA had recently used the District's facilities for two days of training. Approximately 155 individuals attended from twelve different local agencies. Staff also provided LAFCO with a certified copy of the District's resolution in support of MWDOC at its meeting held September 9 h. LAFCO received and filed the resolution as part of their official record. 9.4. General Counsel's Report Mr. Kidman reported that he had recently received notice that Sacramento was working on a water package for improvements to the Delta. ACWA's opinion is that there is lack of balance in the program. 9.5. Future Agenda Items and Staff Tasks The Board again discussed the report regarding the attendance history at Board meetings. Following discussion, it was the consensus of the Board that this report be addressed at the next Executive-Administrative- Organizational Committee meeting and then forwarded on to the rest of the Board. President Summerfield commended staff for their work related to the tiered rate structure. Mr. Vecchiarelli stated that it was the intent of staff to move forward with ' development of a budget based tiered rate structure. Director Beverage suggested that staff look into Irvine Ranch Water District's current rate structure. 10. COMMITTEE REPORTS 10.1. Executive-Administrative-Organizational Committee (Summerfield/Mills) Altemate: Collett Meeting scheduled for September 15, 4:00 p.m. has been rescheduled to September 15, 8:00 a.m. 10.2. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills Minutes of the meeting held September 9 were provided at the meeting. Directors Beverage and Summerfield attended. Items discussed during the meeting were as follows: FY 1008/09 Audit; GASB 43 & 45; Bond Covenants; Monthly Portfolio Report for July 2009. ' Meeting scheduled for October 13, 4:00 p.m. 8 2009-136 ' 1113, Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summerfield Meeting scheduled for September 14, 4:00 p.m. Director Summerfield will be attending this meeting in place of Director Collett. 10.4. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage Minutes of the meeting held September 3 were provided in the agenda packet. Directors Mills and Armstrong attended. Items discussed during the meeting were as follows: Recycled Water Project Planning Study; Grant Deed to SWEPI LP for 0.025 acres on Lakeview Avenue; approval of Change Order No. 3 for the Highland Reservoir Replacement Project; historical documentation of Yorba Linda Reservoir No. 1 (Highland Reservoir); monthly groundwater production, purchased water and preventative maintenance program reports; monthly MWDOC Managers and OC Groundwater Producers meeting summary reports; and status of capital projects in progress. Meeting scheduled for October 1, 4:00 p.m. has been rescheduled to October 7, 4:00 p.m. ' 10.5. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong Minutes of the meeting held September 1 were provided in the agenda packet. Directors Collett and Beverage attended. Items discussed during the meeting were as follows: second version of the summer customer newsletter; permanent signage and monthly statistics for the water conservation ordinance; District participation in public events; and status of the computerized maintenance and management system (CMMS). Meeting scheduled for October 6, 4:00 p.m. 10.6. MWDOCIOCWD Ad Hoc Committee (Mills/Collett) Alternate: Summen`ield Meeting scheduled for September 22, 4:00 p.m. 10.7. City of Placentia Ad Hoc Committee (Beverage/Vecchiarelli) ' Meeting scheduled for September 17, 4:00 p.m. has been cancelled. 10.8. Citizens Advisory Committee Meeting scheduled for September 28, 8:30 a.m. 9 2009-137 11. INTERGOVERNMENTAL MEETINGS ' 11.1. Yorba Linda City Council, September 1 (Mills) Director Mills attended and commented on one of the Orange County Grand Jury Reports which was discussed at the meeting. Director Mills also requested that staff look into the possibility of hosting a water supply forum. Director Summerfield asked if staff would be meeting with the City of Yorba Linda to discuss sewer service. Mr. Vecchiarelli stated that staff had met with the City Manager and Public Works Directors regarding the matter and another meeting was to be scheduled with the Mayor and City Manager. 11.2. MWDOC/MWD Workshop, September 2 (Staff) Staff did not attend. 11.3. OCWD Board, September 2 (Staff) Staff did not attend. 11.4. Yorba Linda Planning Commission, September 9 (Collett) ' Director Collett did not attend. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from September 11, 2009 thru October 31, 2009 The Board reviewed the listed meetings with no additional changes. 13. CONFERENCES AND SEMINARS 13.1. Diamond Valley Lake Tour- September 25, 2009 13.2. CA-NV AWWA Fall Conference - October 5-8, 2009 Mr. Vecchiarelli responded to questions from the Board regarding the tour and conference. Director Summerfield questioned if staff would be planning a District facilities tour at some time in the near future. Mr. Vecchiarelli responded and stated that staff was trying to schedule a District facilities tour for both the Board of Directors and CAC members. Following further discussion, the Board agreed to conduct the tour on Friday, October 23 at 9:00 a.m. Staff will follow up with the CAC to see if this date will work for the majority of its members. On a motion by Director Beverage, seconded by Director Mills, the Board voted ' 5-0 to authorize Directors and such staff members of the District as approved by the General Manager to attend the tour and conference. 10 2009-138 14, ADJOURNMENT 14.1. The meeting was adjourned at 9:45 p.m. The next regular meeting of the Board of Directors will be held September 24, 2009 at 8:30 a.m. Ke Vecchiarelli Board Secretary 1 I i 1 11