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.
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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. ,
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' 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.
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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
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' 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.
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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. '
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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
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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.
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' 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
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