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HomeMy WebLinkAbout2007-02-22 - Board of Directors Meeting Minutes2007-27 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING February 22, 2007 The February 22, 2007 regular meeting of the Yorba Linda Water District Board of Directors was called to order by Vice President John Summerfield at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL John W. Summerfield, Vice President Paul R. Armstrong Michael J. Beverage William R. Mills STAFF PRESENT Michael A. Payne, General Manager Arthur G. Kidman, General Counsel Kenneth R. Vecchiarelli, Asst. G.M. Diane Cyganik, Finance Director Lee Cory, Operations Manager Michael Robinson, Assistant Administrator Amelia Cloonan, Exec Secretary Lynn Nuzman, Sr. Distr. Maint. Operator Dave Barmer, Sr. Maint. Distr. Operator Ken Mendum, Water Maint. Superintendent Sherif Visoka, Business Warehouse Intern DIRECTORS ABSENT AT ROLL CALL Ric Collett, President INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Debbie Trabattoni, The OC Advocacy Group Brett Barbre, MWDOC Director SPECIAL RECOGNITION Operations Manager Cory introduced Lynn Nuzman, Senior Distribution Maintenance Operator, who was recognized for completing the JPIA Professional Development Program. Operations Manager Cory introduced Dave Barmer who was recognized on his promotion to Senior Maintenance Distribution Operator. Operations Manager Cory introduced Ken Mendum, newly hired Water Maintenance Superintendent. Finance Director Cyganik introduced Sherif Visoka, newly hired Business Warehouse Intern. 2007-28 Lynn Nuzman, Dave Barmer, Ken Mendum, Sherif Visoka and Mike Robinson left the meeting at 8:39 a.m. MWDOC Director Barbre reported that he attended the ACWA D.C. Conference last week. The Yorba Linda Water District was favorably mentioned because of proposing a helicopter pad on one of the District's reservoirs in conjunction with the Highland reservoir expansion. MWDOC's MSR review is coming before LAFCO on Tuesday, February 27 at 9:00 a.m. The process will probably continue through May. Michael Payne advised the Board and Director Barbre that he would attend. CONSENT CALENDAR (Items 1 through 2) On a motion by Director Beverage, seconded by Director Armstrong, the Board of Directors voted 4-0 to approve the Consent Calendar. Minutes of the Regular Board of Directors meeting held February 8, 2007. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $684,227.75. Brett Barbre left the meeting at 8:47 a.m. ACTION CALENDAR 5. Terms and Conditions for Annexation to OCWD and LAFCO Application to Annex Bryant Ranch Property. General Manager Payne noted a correction in the staff report. Under the committee recommendation, the first sentence mentioning the Public Information Committee should be deleted. The letter outlining the terms and conditions was presented to the Executive-Administrative-Organizational Committee. General Manager Payne stated on December 22 when the Board met, the OCWD had already presented seven deal points as a condition to annexation to OCWD. There was a lengthy discussion, and the Board decided a response would be prepared for the Board's consideration on February 22. Meetings were held with District General Counsel and The OC Advocacy Group. General Counsel Kidman spoke about the LAFCO process, areas of annexation and pursuing annexation for non Bryant Ranch lands. The Bryant Ranch proposal is going directly to LAFCO on behalf of the landowners. The application, if approved will be turned in tomorrow. LAFCO will issue a notice of filing, which will -2- 2007-29 go to OCWD. When that happens, the timeline commences for OCWD. They have the ability to say no, veto by subject agency. There are only two reasons to veto: a financial concern or a service concern. A financial concern is that the area subject to annexation cannot afford annexation. The service concern means somehow the annexation will demean the level of service available to the rest of OCWD. In order to veto, OCWD has to make a finding supported by substantial evidence. A review of OCWD's obligation under the 1970 agreement may take place judicially. If all proceeds without a hitch, LAFCO can go forward with appropriate terms and conditions. Mike Bailey, Director of Facilities, and Rick Guaderama, Assistant Director of Facilities, Placentia Yorba Linda Unified School District entered the meeting at 9:02 a.m. General Manager Payne commented all seven deal points are listed in the letter with the District's response. The District's position basically stated it wants to meet on the issues on all seven points. One other item being added to the letter is support letters from Pulte Homes, PYLUSD, S&S and the City of Yorba Linda. The letters will go out as an attachment to the letter to OCWD. Concern was raised about the method of delivery of the letter and the copies. General Manager Payne mentioned the City of Anaheim's annexation term sheet was on the OCWD Board agenda for their meeting of February 21. On a motion by Director Mills, the Board of Directors voted 4-0 to authorize the President to send the letter response to OCWD on behalf of the District to proceed with annexation discussions and authorize the President to execute the LAFCO Project Application and Indemnification Agreement for annexation of the Bryant Ranch properties to OCWD. Director Beverage seconded the motion and added provisions that the letter and support letters from outside agencies copied to OCWD Board members be mailed certified or registered. Debbie Trabattoni left the meeting at 9:37 a.m. DISCUSSION ITEMS 3. Status Report on the Terms and Conditions for the Placentia Yorba Linda Unified School District Annexation. General Manager Payne and Assistant General Manager Vecchiarelli met yesterday with Dennis Smith, Mike Bailey and Rick Guaderama of Placentia-Yorba Linda Unified School District. They discussed storage, the booster station and the delta between OCWD purchased water and import water. General Manager Payne believes the District and the school district are close to bringing in the attorneys to draft a pre-annexation agreement. Water conservation was discussed and both sides are investigating costs. Also discussed was: paying some capital costs over time; paying interest; and some of the fees due now, i.e. Allen McCulloch. -3- 2007-30 PYLUSD Facilities Director Bailey said there are details left to work out, but major concepts are in accord. The parties are moving slowly in the right direction. A draft letter is being worked on to support annexation to OCWD. The high school plans were approved by the state about 1-1/2 weeks ago. The bid packages are out. All contracts and budget numbers will be in by mid March. March 2nd is scheduled for close of escrow. The intention is to do ground breaking in early April. Director Armstrong raised a question about the cost for construction water. General Manager Payne stated the cost will be treated the same as in the past for that property. The District's water service is the same for public and private schools. Fire storage requirements are dictated by the Orange County Fire Authority. PYLUSD Facilities Director Bailey spoke about the eligibility threshold with the State of California. PYLUSD is not eligible for all of the new high school costs. In the state's view new construction is a 50/50 deal based on a state-wide design index. Mr. Bailey explained the difference between work and land costs for state purposes. $2 million was the number given to the state. The state responded that documentation backing up this number must be submitted. Director Beverage questioned staff about Water 3's engineering report for PYLUSD. General Manager Payne stated the District received and reviewed the report but did not accept it. Two weeks ago there was an open forum meeting held in the City Council chambers by the Yorba Linda Chamber of Commerce. The first question asked was what is going on between the District and PYLUSD. The newspaper tried to downplay Superintendent Smith's answer. A recess as declared at 10:00 a.m. Mike Bailey, Rick Guaderama, Diane Cyganik and Lee Cory left the meeting. The Board reconvened in open session at 10:10 a.m. All Directors were present, with the exception of President Collett. ADJOURN TO CLOSED SESSION 4. None REPORTS, INFORMATION ITEMS AND COMMENTS 6. a. President's Report Vice President Summerfield brought up the question of documents received by the District that have not been stamped and signed by a professional engineer. The District could have stated it would not accept the plans, because there was no substantiation. General Counsel Kidman stated that might be too legalistic an approach. General Manager Payne stated the District's intent was never to accept the Water 3 report but to try to understand why the District's numbers and the engineer's numbers were so far apart. There was some discussion about engineering reports. -4- 2007-31 General Manager Payne also reported staff receives grading plans, street improvement plans and tract maps that are not signed by a Registered Civil Engineer. b. Directors Reports There were no reports. c. General Managers Report 1) Form 700 Statement of Economic Interest, Fair Political Practices Commission 2) A request was made to move the March 1 Directors' Workshop to March 15 at 8:30 a.m. in the EOC Room, Richfield Plant. This request was agreed to by all Directors. 3) The publicly elected officials tour is scheduled for March 17, 8:30 a.m. commencing at the Richfield Plant. Letters have gone out. Jan Horton, City Council Member, City of Yorba Linda has already accepted. 4) The District will be obtaining gasoline from the gas station located at Fairlyn and Esperanza, because of the fire at the Shell station located at Rose and Yorba Linda Boulevard. 5) ACWA is looking for a new Executive Director to replace Steve Hall. 6) Mike Wenner has been appointed interim Director at OCWD. d. General Counsel's Report General Counsel Kidman reported on developments regarding Prop 218, the Big Horn legislation. He stated there is concern about this because of the use of property tax rolls for notification of increases. February 23 is the deadline for introducing legislation. The California League of Cities may opposed this based on the idea there are some sections in the government code allowing unpaid sewer charges, in particular, to become chargeable on the property tax rolls. The District has not used this method. In areas where the agency does not provide water service but does provide sewer service, turning off the water is not an option for non payment. The general consensus is ACWA will go ahead and introduce legislation as previously drafted and hope the legislation will not be opposed. COMMITTEE REPORTS 7. a. Executive-Administrative-Organizational Committee (Collett/Summerfield) Alternate: Armstrong 1) Minutes of the meeting held February 20 will appear in the Board agenda on March 8. Vice President Summerfield reported the committee discussed the Board Workshop, OCWD deal points, ACWA D.C. Conference report, FEMA state level grants (the District is in the second round, one of 51 agencies) and future City of Yorba Linda and City of Placentia ad hoc meetings. 2) Meeting scheduled for March 20, 4:00 p.m. -5- 2007-32 b. Finance-Accounting Committee (Mills/Beverage) Alternate: Summerfield 1) Minutes of meeting held February 20 will appear in the Board agenda on March 8. Director Mills reported the committee spoke by conference call with Keith Khorey of Wells Capital. The committee looked at financial statements for October and November. Director Mills recommended staff look at reporting on key indicators of how the District is doing. We only need to compare to budget, and last year was taken into account when the budget was prepared. Director Beverage wants to come to a conclusion about what is needed. General Manager Payne stated the financials for the next Board meeting will be left as is, but changes to future financials will be discussed at the next committee meeting. 2) Meeting scheduled for March 13, 4:00 p.m. c. Personnel-Risk Management Committee (Summerfield/Armstrong) Alternate: Mills 1) Minutes of meeting held February 12. Staff gave information to the committee regarding: the status of current recruitments, the status of risk management issues, the District's new indemnification language for design professionals, the ACWA/JPIA Retrospective Premium Adjustments at 9/30/06, the ACWA/JPIA Risk Assessment conducted 1/19/07 and reviewed the Directors' benefits handbook. 2) Meeting scheduled for March 12, 4:00 p.m. d. Planning-Engineering-Operations Committee (Armstrong/Mills) Alternate: Collett 1) Meeting scheduled for March 1, 2007, 4:00 p.m. e. Public Information Committee (Collett/Beverage) Alternate: Armstrong 1) Minutes of meeting held February 6. Action items discussed by the committee included: a public relations plan with the groundwater producers for the YLWD annexation response to OCWD, review of the 2006 Annual Report and Consumer Confidence Report, ACWA Washington D.C. legislative presentation and a letter to homeowners in low pressure areas. Standing items included: the SmarTimer program and the MWDOC school program. Information items included: an update on March 17 District tour, Placentia-Yorba Linda Unified School District annexation and a status report on District information activities. -6- 2007-33 2) Meeting scheduled for March 6, 2007, 4:00 p.m. f. Building Ad Hoc Committee (Summerfield/Beverage) Alternate: Armstrong 1) Meeting scheduled for March 29, 4:00 p.m. g. MWDOC Ad Hoc Committee (Beverage/Collett) Alternate: Mills 1) Meeting scheduled for February 27, 2007. INTERGOVERNMENTAL MEETINGS 8. a. ACWA's Washington, D.C. Conference, February 13-15. (Mills, Payne, Vecchiarelli) Director Mills reported the YLWD delegation met Congressman Gary Miller and Senators Feinstein presentations were made to the congressional representatives attended the annual luncheon and Representatives on Wednesday. with the staffs of and Boxer. Short staff. The District met with some U.S. b. Yorba Linda Planning Commission, February 14. Director Armstrong reported the Heritage Oaks School is converting an auto repair shop to classroom buildings. A year-end report was presented outlining the number and type of actions the planning commission is addressing and approving or disproving. c. Yorba Linda City Council, February 20. No one attended. e. MWDOC Board, February 21. No one attended, although MWDOC General Manager Hunt and General Manager Payne met later that day to discuss issues on the agenda. f. OCWD Board, February 21. General Manager Payne attended the meeting. The City of Anaheim Terms and Conditions for annexation were approved on their consent calendar. OCWD will post notices regarding a public hearing to increase the Replenishment Assessments. -7- 2007-34 BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after February 22, 2007. Agenda is available in the District office prior to meeting. I Yorba Linda Planning Commission, Feb 28, 6:30 p.m. I Summerfield March 2007 Plan nin -En ineerin -O erations Committee, Mar 1, 4:00 .m. Armstrong/Mills WACO, Mar 2, 7:30 a.m. Mills Public Information Committee, Mar 6, 4:00 .m. Collett/Beverage Yorba Linda City Council, Mar 6, 6:30 p.m. Collett MWDOC/MWD Joint Workshop, Mar 7, 8:30 a.m. Staff OCWD Board, Mar 7, 5:00 .m. Staff Personnel-Risk Management Committee, Mar 12, 4:00 .m. Summerfield/Armstron Finance-Accounting Committee, Mar 13, 4:00 .m. Mills/Beverage Yorba Linda Planning Commission, Mar 14, 6:30 .m. Armstrong Board Goals Workshop, Mar 15, 8:30 a.m., Richfield Plant Public Officials tour, Mar 17, 8:30 a.m., Richfield Plant Executive-Admin-Or anizational Committee, Mar 20, 4:00 p.m. Collett/Summerfield Yorba Linda City Council, Mar 20, 6:30 .m. Mills MWDOC Board, Mar 21, 8:30 a.m. Staff OCWD Board, Mar 21, 5:00 .m. Staff Yorba Linda Planning Commission, Mar 28, 6:30 .m. Building Ad Hoc Committee, Mar 29, 4:00 p.m. Summerfield/Bevera e April 2007 Public Information Committee, April 3, 4:00 .m. Collett/Beverage Yorba Linda City Council, April 3, 6:30 p.m. Collett MWDOC/MWD Joint Workshop, April 4, 8:30 a.m. Staff OCWD Board, April 4, 5:00 p.m. Staff Plan nin -En ineerin -O erations Committee, April 5, 4:00 .m. Armstrong/Mills WACO, April 6, 7:30 a.m. Mills Personnel-Risk Management Committee, April 9, 4:00 p.m. Summerfield/Armstron Finance-Accounting Committee, April 10, 4:00 .m. Mills/Beverage Yorba Linda Planning Commission, April 11, 6:30 p.m. Armstrong Executive-Admin-Or anizational Committee, April 17, 4:00 .m. Collett/Summerfield Yorba Linda City Council, April 17, 6:30 p.m. Mills MWDOC Board, April 18, 8:30 a.m. Staff OCWD Board, April 18, 5:00 .m. Staff Building Ad Hoc Committee, April 19, 4:00 p.m. Summerfield/Bevera e Yorba Linda Planning Commission, April 25, 6:30 .m. Summerfield -8- 2007-35 CONFERENCES AND SEMINARS 9. Authorize attendance of Directors and such staff members of the District as approved by the General Manager to attend the following conferences and seminars. a. None. ADJOURNMENT On a motion by Director Beverage, seconded by Director Mills, the Board of Directors voted 4-0 to adjourn at 10:58 a.m. to a regular meeting of the Board of Directors scheduled for Thursday, March 8, 2007 at 8:30 a.m., at 4622 Plumosa Drive, Yorba Linda 92886. Michael A. Payne Secretary -9- THIS PAGE LEFT BLANK. 2007-36