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HomeMy WebLinkAbout2010-03-11 - Board of Directors Meeting Minutes 2010-036 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING March 11, 2010 1. CALL TO ORDER The March 11, 2010 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Mills at 8:30 a.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 William R. Mills, President Ken Vecchiarelli, General Manager Michael J Beverage, Vice President Pat Grady, Assistant General Manager Ric Collett Art Kidman, Legal Counsel Phil Hawkins Steve Conklin, Engineering Manager ' John W Summerfield Stephen Parker, Finance Director Damon Micalizzi, PI Specialist Annie Alexander, Executive Secretary OTHER VISITORS Brett Barbre, Director, Municipal Water District of Orange County (MWDOC) Laurie Ellen Park, Associate, McCormick, Kidman & Behrens 4. ADDITIONS/DELETIONS TO THE AGENDA After conferring with Mr Kidman, Mr Vecchiarelli stated that there was no need for a Closed Session (Item No. 13 1) 5. PUBLIC COMMENTS Mr Barbre addressed the Board and provided a brief report regarding the State's water supply situation. Mr Barbe also requested that the Board consider concurring with MWDOC's nomination of Rich Freschi and Shawn Dewane as regular and alternate LAFCO Commissioners. This matter will be discussed at the next Executive-Administrative-Committee meeting. Mr Barbre then responded to questions from the Board regarding the status of the water supply 6. CONSENT CALENDAR On a motion by Director Beverage, seconded by Director Summerfield, the Board ' voted 5-0 to approve the Consent Calendar Director Beverage abstained from voting on Check No. 53658 of Item No. 6.3. since it was an expense reimbursement for himself. 1 2010-037 6.1. Minutes of the Regular Board of Directors Meeting Held February 25, 2010 Recommendation. That the Board of Directors approve the minutes as presented. 6.2. Minutes of the Special Board of Directors Meeting Held February 26, 2010 Recommendation. That the Board of Directors approve the minutes as presented. 6.3. Payment of Bills, Refunds, and Wire Transfers Recommendation. That the Board of Directors ratify and authorize disbursements in the amount of $81Z016.02. 6.4. Progress Payment No. 22 for the Highland Reservoir Replacement Project Recommendation. That the Board of Directors approve Progress Payment No. 22 in the net amount of $319,417.76 to Schuler Engineering Corporation and 10% retention of $35,490.86 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job ' No. 200309. 6.5. On-Call Services Contract with MWH Americas, Inc. (MWH) Recommendation: That the Board of Directors authorize approval of On-Call Services contract Amendment No. 2 with MWH Americas, Inc. for a fee increase not to exceed $47, 240, resulting in a total fee of $95,760. 6.6. Engineering Services for Wellhead Equipping of YLWD Well No. 20 Recommendation: That the Board of Directors authorize execution of a Professional Services Agreement with Civiltec for a fee not to exceed $79,820, to provide engineering design, bid support and construction management services for Wellhead Equipping of Well No. 20. 6.7. Quarterly Investment Report for December 2009 Recommendation: That the Board of Directors receive and file the investment report for the quarter ending December 31, 2009. , 2 2010-038 ' 7. ACTION CALENDAR 7.1. Appointment of Corporate Officer Mr Vecchiarelli explained that with the hiring of Stephen Parker as the permanent Finance Director, a new Auditor would need to be appointed for the District. On a motion by Director Beverage, seconded by Director Collett, the Board voted 5-0 to appoint Stephen Parker, Finance Director, as Auditor for the Yorba Linda Water District. Mr Vecchiarelli then responded to questions from the Board and clarified that the office of Auditor was not the same as the auditors hired by the District to perform annual audits. Mr Vecchiarelli further stated that if the individual appointed as the Auditor was also an employee of the District, no additional compensation for their service would be provided. 7.2. Revised Public Investment Policy Mr Vecchiarelli explained that Wells Capital had suggested that the District invest in CalTRUST in order to receive a better return. In order to proceed, the District's investment policy would need to be revised to allow ' investments in CalTrust. Director Summerfield requested that staff arrange to have a presentation provided to the Board regarding CalTrust investments before making a transfer of funds. Director Collett stated that he participated in the conference call with Wells Capital where this matter was discussed and felt that proceeding with this transfer would be beneficial for the District. Director Summerfield agreed. Mr Vecchiarelli stated that the resolution would only revise the District's investment policy and would not authorize a transfer of funds at this time. Staff will come back to the Board with a request to transfer funds at a future Board meeting. On a motion by Director Summenreld, seconded by Director Collett, the Board voted 5-0 on a Roll Call to adopt Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution 09-01 7.3. Nomination of Joan C Finnegan as President of ACWA/JPIA Mr Vecchiarelli explained that MWDOC had requested the Board to consider adopting a resolution concurring with their nomination of Ms. Finnegan as President of ACWA/JPIA. Mr Barbre addressed the Board and stated that he had nominated Ms. Finnegan as the MWDOC Board President and supported her nomination ' as President of ACWA/JPIA. On a motion by Director Beverage, seconded by Director Summerfield, the Board voted 5-0 on a Roll Call to adopt Resolution No. 10-04 Concurring in Nomination of Joan C. Finnegan as President of ACWA/JPIA. 3 2010-039 7.4. Preparation of a Cost of Service and Water Rate Study Mr Vecchiarelli explained that staff issued a Request for Proposals to ' conduct a Cost of Service Analysis and Water Rate Study Staff received six proposals of which the highest ranking was from Raftelis Financial Consultants. Staff is recommending that the Board move forward with the study as it will serve as a tool for developing alternative rate structures. Director Collett asked how much of the study would be paid for by grant funds. Mr. Vecchiarelli responded that approximately 40-50% of the costs would be paid using grant funding. Director Mills clarified that the firm would be performing a rate study only and not implementing a new rate structure. Mr Vecchiarelli stated that staff planned to provide at least 3 months of shadow billing prior to implementation of a new rate structure if one is ultimately approved by the Board. This will enable customers to preview what their bills will be using a new rate structure. Mr. Vecchiarelli then responded to further questions from the Board regarding the study and state mandated conservation. Mr. Kidman commented on new Urban Water Management Plan (UWMP) requirements which include clear conservation goals and a 20% reduction in water usage per capita per day by the year 2020. Director Beverage requested that a uniform rate be included in the study. Mr Vecchiarelli responded that the study could include this option but it would be by customer class (single family residential, multi-family residential, commercial and irrigation). Director Beverage stated that he supports a simplified rate structure, 6 months of ' shadow billing and a comprehensive outreach program. Mr. Vecchiarelli and Mr Kidman then responded to questions from the Board regarding the UWMP requirements and how non-compliance could affect qualifying for state funding. Director Mills stated that he thought the Board should move forward with the study Director Collett agreed with Director Beverage regarding the 6 months of shadow billing and stated that implementation of a new rate structure should be taken slowly Director Beverage made a motion, seconded by Director Summerfield as follows: (1) to authorize the General Manager to execute a Professional Services Agreement with Raftelis Financial Consultant in the amount of $77,005 to conduct a Cost of Service and Water Rate Study; (2) to include a modified uniform rate stricture in the study; (3) that a new rate structure not be implemented until after July 1, 2011, (4) that rate structure alternatives be included in the UWMP due June 30, 2011; and (5) that shadow billing be conducted for 4-6 months. Mark Schock addressed the Board and stated that he appreciated the clarification provided at this meeting and the opportunity to review budget based water rates. He encouraged the District to review the rate structure implementation of the Irvine Ranch Water District (IRWD) and East Bay Municipal Water District. He further stated that he would like to see the Board offer several opportunities for public input regarding a proposed rate structure and 6 months of shadow billing. Mr. Schock ended his comments by noting that the suggested timeline for implementation of a 4 2010-040 ' new rate structure was 24 months according to the MWDOC grant and that the San Juan Capistrano Water District conducted 5 public workshops before implementing a new rate structure. Mr Barbre addressed the Board and suggested that the District consider the cost involved in implementing a budget based water rate structure including obtaining customer information. Mr Barbre also noted that the IRWD's water rate only covers 26% of their expenses as they have substantial reserves. Mr Vecchiarelli stated that the District's water rate structure didn't need to be as technical as IRWD's and that the goal would be to incentivize water use efficiency The motion passed with the Board voting 5-0. 8. REPORTS, INFORMATION ITEMS AND COMMENTS 8.1. President's Report President Mills reported that he and Director Hawkins had attended a MWDOC Water Policy Forum the previous evening. Mark Cowin, Director ' of the Department of Water Resources spoke at the event. President Mills then requested staff to look into becoming a member of CalDesal and provide a recommendation to the Board. 8.2. Directors' Reports Director Hawkins thanked Mr Barbre for his assistance and for introducing him to several agency representatives and officials at the MWDOC Water Policy Forum and encouraged the Board to attend the California's Comprehensive Water Package Informational Forum scheduled March 12, 2010 Director Hawkins then expressed his appreciation for being appointed to the Board and stated that he looked forward to serving. Director Collett commented on the drought conditions in Seattle, Washington and its possible affect on excess electricity supplies normally sold to California. Director Summerfield commented on an e-mail he had received from Mr Micallizi regarding the District being on Facebook and Twitter Director Summerfield also stated that he would be unavailable to attend meetings from September 6 to September 24, 2010. 1 5 2010-041 8.3. General Manager's Report ■ California's Comprehensive Water Package International Forum - ' March 12, 2010 ■ 2010 Children's Water Education Festival -March 25, 2010 Mr Vecchiarelli suggested that the above listed events be moved under Conferences and Seminars (Item No. 12. on the agenda) so that the Board may vote to authorize their attendance. The Board agreed. Mr Vecchiarelli reported that the Board had been invited to attend a VIP preview of the Children's Water Education Festival on the morning of March 25, 2010. However, a regular Board meeting is scheduled at that same time. 8.4. General Counsel's Report Mr Kidman stated that the title of Auditor was a name only and could be changed to Treasurer should the District desire to clarify the duties of this office. He also reported that the judge still had not made a ruling regarding the cases related to the Freeway Complex Fire. The District also received an additional complaint on behalf of several insurance companies seeking compensation for payouts they made related to the fire. 8.5. Future Agenda Items and Staff Tasks , None. 9. COMMITTEE REPORTS 9.1. Executive-Administrative-Organizational Committee (Mills/Beverage) Alternate. Collett Meeting scheduled March 16, 2010 at 4:00 p.m. 9.2. Finance-Accounting Committee (Summerfield/Collett) Alternate. Mills Meeting scheduled March 15, 2010 at 8:00 a.m. 9.3. Personnel-Risk Management Committee (Collett/Hawkins) Alternate: Summerfie/d Meeting scheduled March 9, 2010 at 4:00 p.m. was cancelled. Meeting scheduled April 13, 2010 at 4:00 p.m. ' 6 2010-042 9.4. Planning-Engineering-Operations Committee (Mills/Summerfield) Alternate. Beverage Minutes of the meeting held March 4, 2010 were provided in the agenda packet. Directors Mills and Summerfield attended. Matters discussed during the meeting were as follows: Monthly Groundwater Production, Purchased Import Water and Preventative Maintenance Program Reports; Engineering Services for Wellhead Equipping of Well No. 20; On-Call Services Contract with MWH Americas, Inc., Monthly Groundwater Producers Meeting Report; and Status Report on Capital Projects in Progress. Meeting scheduled April 1, 2010 at 4.00 p.m. 9.5. Public Information-Technology Committee (Beverage/Hawkins) Alternate. Summerfield Minutes of the meeting held March 2, 2010 were provided in the agenda packet. Directors Beverage and Hawkins attended. Matters discussed during the meeting were as follows: Naming of Future District Facilities; Conservation Ordinance Monthly Statistics, Public Outreach Activities; and ' IT Projects Monthly Status. Meeting scheduled April 6, 2010 at 4.00 p.m. 9.6. MWDOC/OCWD Ad Hoc Committee (Mills/Beverage) Alternate. Collett Meeting scheduled March 23, 2010 at 4.00 p.m. 9.7. Citizens Advisory Committee (Directors Rotate Attendance) Minutes of the meeting held March 1, 2010 were provided in the agenda packet. Director Hawkins attended. Matters discussed during the meeting were as follows: Introduce CAC Members Present and Visitors; Introduce Engineering Department, Planning and Design Section; Presentation Regarding MWDOC Outreach Programs, Appointment to Fill Vacancy on the Board of Directors, Talking Points Regarding Recent Rainfall and Existing Drought; Status Report on Conservation Efforts. Meeting scheduled March 29, 2010 at 8:30 a.m. (Beverage) ' Mr Vecchiarelli responded to questions from the Board regarding membership on the committee. Mr Vecchiarelli stated that Modesto Llanos is interested in becoming a committee member 7 2010-043 10. INTERGOVERNMENTAL MEETINGS ' 10.1. YL City Council - March 2, 2010 (Mills) Director Mills did not attend; however, Mr Vecchiarelli attended and provided a presentation to the City Council regarding the District's water quality program and concerns regarding arsenic levels. 10.2. MWDOC/MWD Workshop - March 3, 2010 (Staff) Staff did not attend. 10.3 OCWD Board - March 3, 2010 (Staff) Staff did not attend. 10.4. YL Planning Commission - March 10, 2010 (Collett) This meeting was cancelled. Direct Collett stated that the Commission was considering meeting only once a month. 11. BOARD OF DIRECTORS ACTIVITY CALENDAR 11.1. Meetings from March 12, 2010 - April 30, 2010 The Board reviewed the listed meetings and made no changes. 12. CONFERENCES AND SEMINARS ' 12.1 Santa Ana River Watershed Conference - April 22, 2010 12.2 California's Comprehensive Water Package International Forum - March 12, 2010 12.3. 2010 Children's Water Education Festival - March 25, 2010 On a motion by Director Beverage, seconded by Director Summerfield, the Board voted 5-0 to authorize Directors and such staff members of the District as approved by the General Manager to attend the above listed events. Mr Vecchiarelli and Mr Micalizzi responded to questions from the Board regarding the District's participation in the Children's Water Education Festival. Mr Vecchiarelli explained that due to staff constraints, the District was unable to provide a booth this year Mr Micalizzi stated that he had contacted the event organizers and while they were not able to arrange a booth, they would still allow the District to provide materials and have a presence at the event. 8 2010-044 ' 13. CLOSED SESSION No Closed Session was held as it was not needed. 13.1. Conference with Legal Counsel - Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: Itani, et al vs. YLWD (OC Superior Court - Case No. 00124906) Name of Case: Johnson, et al vs. YLWD, et al (OC Superior Court - Case No. 00125994) Name of Case: State Farm General Insurance Company vs. YLWD (OC Superior Court - Case No 00311353) Name of Case: Weiss vs. YLWD (OC Superior Court - Case No. 00319080) Name of Case: Lindholm vs. YLWD, et al (OC Superior Court - Case No. 00320239) ' Name of Case. Travelers Commercial Insurance Company vs. YLWD (OC Superior Court - Case No. 00327152) Name of Case: Rodriguez vs. YLWD et al, (OC Superior Court - Case No 00333938) Name of Case. Manista vs. YLWD, et al, (OC Superior Court - Case No 00332968) 14. ADJOURNMENT 14.1. The meeting was adjourned at 9:56 a.m. The next regular meeting of the Board of Directors will be held March 25, 2010 at 8:30 a.m. Ken Vecchiarelli Board Secretary 1 9