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HomeMy WebLinkAbout2007-07-26 - Board of Directors Meeting Minutes2007-119 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING July 26, 2007 The July 26, 2007 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Ric Collett at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL Ric Collett, President 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 Betsy Martyn, District Counsel Diane Cyganik, Finance Director Lee Cory, Operations Manager Art Vega, Acting IT Manager Stacy Bavol, Customer Service Supervisor Amelia Cloonan, Exec. Secty INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Keith Khorey, Wells Capital Brett Barbre, MWDOC Director Armando Jaime, City of Yorba Linda MWDOC Director Barbre stated MWDOC is appreciative of the support of the District with the LAFCO review. Director Barbre spoke about the drought, storage, Lake Mathews, the sewers and the tunnel. General Manager Payne stated the District is setting up meetings with the PYLUSD, City of Yorba Linda and MWDOC to solicit grants for synthetic turf. SPECIAL RECOGNITION None CONSENT CALENDAR (Items 1 through 7) On a motion by Director Armstrong, seconded by Director Mills, the Board of Directors voted 5-0 to approve the Consent Calendar, with President Collett abstaining from voting on Check No. 47070, Item 2. 1. Minutes of the Regular Board of Directors meeting held July 12, 2007. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $1,393,525.23. -1- 2007-120 3. Consider Financial Statements for the tenth and eleventh months of fiscal year 2006-2007 for the periods ending April 30 and May 31, 2007 respectively. Recommendation. Receive and file the financial statements. 4. Permanent Asphalt Paving Repair Contract Recommendation: Authorize the General Manager to sign a two-year paving agreement with Hardy & Harper Inc. 5. Permanent Concrete Repair Contract Recommendation: Authorize the General Manager to sign a two-year concrete agreement with J&S Construction of La Habra Heights. 6. Progress Payment for Construction of the Lakeview Reservoir Recommendation: Approve Progress Payment No. 2 in the net amount of $379,800.00 to SSC Construction, Inc. for construction of the Lakeview Reservoir Project, Job No. 200704. 7. Declaration of Restrictive Covenants with Mr. Francis Memole Recommendation: Authorize the President and Secretary to execute the Declaration of Restrictive Covenants subject to approval as to form by General Counsel with Mr. Francis Memole, Job No. 200708. President Collett requested Item 11 be moved to this point in the agenda to accommodate Mr. Khorey's schedule. DISCUSSION ITEMS 11. Wells Capital Fourth Quarter Investment Portfolio Status Report. Keith Khorey, Wells Capital, gave an overview of the material presented in the agenda and an overview of what is happening in the market. General Manager Payne stated the District is moving forward with bond counsel. Keith Khorey and Brett Barbre left the meeting at 9:01 a.m. PUBLIC HEARING 8. Consider Sewer Rate Report for Fiscal Year 2007/08. a. President Collett opened the Public Hearing at 9:01 a.m. b. Secretary Payne provided proof of the public hearing notice and correspondence. It was noted that the 21 letters from the public will be entered in the records. c. Testimony began with a report by Finance Director Cyganik who presented reports beginning with the summary sheet for sewer rate study 2007. An R&R fund was mentioned by General Manager Payne. Director Mills asked about expensing the camera truck, which will not be written off in one year, and the reasoning of the Finance-Accounting Committee in recommending the $5.50 sewer rate. -2- 2007-121 Betsy Martyn, Legal Counsel, reported on the 21 letters of protest received: 8 expressed outrage at the 100% increase plus 5% CPI, 6 identified themselves as seniors on fixed incomes, 5 identified themselves as homeowners protesting the increase, one was confused about the District's charge and another user fee on the tax roll and one letter was received on July 26. d. There was no testimony from the public. e. President Collett closed the Public Hearing at 9:34 a.m. f. Discussion. Betsy Marlyn commented that state law requires the District to set rates at a level that will cover costs. The rate cannot be more than the cost of providing the service plus overhead. The District's options were covered. Seven dollars was noticed because it was the highest possible amount plus CPI capped at 5% per year. The rate can be set anywhere below the $7.00, and the Board can come back and examine the rate in a year. The CPI goes up automatically. The maximum the following year would be $7.35. If AB 1260 passes, the District could notice in the bills. Vice President SummerField stated he is not comfortable with the automatic CPI increase. Betsy Martyn replied an affirmative act may be taken to institute a lower CPI amount. Director Mills recommended moving forward to adopt the $5.50 rate plus a discretionary CPI increase. Resolutions 07-13 and 07-14 will reflect a discretionary CPI increase capped at 5% a year. Staff will establish reserve accounts within the sewer fund for the R&R of sewer vehicles and equipment and for sewer capital infrastructure R&R. On a motion by Director Mills, seconded by Director Beverage, the Board of Directors on a roll call vote voted 5-0 to make the following findings: that the sewer maintenance charge rate increase is exempt from CEQA and that the sewer maintenance charge rates for fiscal year 2007-08 need to be adjusted; adopt Resolution No. 07-13 adopting sewer maintenance charges for fiscal year 2007-08 and rescinding Resolution 03-10; and adopt Resolution No. 07- 14 adopting the sewer maintenance charge rates for Locke Ranch and other areas outside the District boundaries and electing to have such sewer maintenance charges collected on the fiscal year 2007-08 tax roll and rescinding Resolution No. 06-05. Betsy Martyn left at 9:55 a.m. Armando Jaime and Art Vega left at 10:00 a.m. The Board of Directors recessed at 10:03 a.m. The Board of Directors reconvened at 10:20 a.m. with all Directors present. -3- 2007-122 ADJOURN TO CLOSED SESSION 9. None ACTION CALENDAR 10. None DISCUSSION ITEMS 12. Report on Water Meter Replacement Program. Customer Service Supervisor Bavol presented an update on the meter replacement program and thanked the Board for funding this as a capital improvement project. 9717 radio read meters are now in place. 5400 meters will be billed and read monthly by February. By April, 1700 more will be added. This represents one-third of the District's area. Stacy Bavol left the meeting at 10:29 a.m. REPORTS INFORMATION ITEMS AND COMMENTS 13. a. President's Report President Collett read an article about water shortages in Northern California. The District needs to start publicity now regarding this subject. b. Directors Reports Vice President Summerfield reported he is installing the SmarTimer system on his sprinkler system. He spoke to Joe Berg, MWDOC, and Director Mills about the SmarTimer system. Director Mills has had the SmarTimer system in at his residence for a year now. c. General Managers Report General Manager Payne reported: There was a meeting with PYLUSD. Both sides are getting closer to bringing deal points to the Executive-Administrative-Organizational Committee. IRWD sent a letter to OCWD regarding a counter proposal on their annexation. There is a meeting with LAFCO next week on the Bryant Ranch Annexation. The initial meeting is to set the groundwork for a mediator to come in. A request was received from Roger Faubel to make a presentation to the Board on the Poseidon Desalination plant. The Board agreed and requested arrangements be made. An e-mail was received from Sean Fitzgerald regarding a meeting with Congressman Miller on August 9 from 7:30 to 9:00 a.m. at the Brea Civic Center. This is on the day of a Board meeting. Vice President Summerfield will attend. The Board meeting today will be adjourned to 9:00 a.m. on August 9. -4- 2007-123 1) General Counsel's Report The Court of Appeal has ruled that a groundwater charge is subject to Prop 218. The firm has analyzed this and come to the conclusion that the RA is probably also subject. BEA is not a Prop 218 charge. There is a staff report regarding approving a new government claims act procedure. Normally a claim for a refund of improperly collected assessment or tax is not subject to the claim act. An agency can adopt its own separate local procedure that would make the claims act applicable. The thought is they will recommend YLWD adopt a similar type of procedure. The issue came up relative to AB 1260 but was taken out of the bill. There is a range of possible exposure where someone could come in and say the charge was illegal, and the whole rate structure could be challenged years down the line. One way to avoid that would be to have this claims act procedure in place. The controversy relative to IRWD is on two levels. The macro level: if we admit more people eligible to take groundwater from the basin, the BPP might go down. IRWD is coming in adding a great deal more demand to the basin. The other issue is pumping interference. Even when there is no overdraft, this can be an issue. There can be a pumping depression. IRWD's new proposal is two fold: 1) absorb the maximum of their well capacity and then go to in lue to stabilize when they stop pumping and 2) advance their annexation fee covering the capital cost to build an injection well offshoot of the groundwater replacement system. They would build a pipeline to bring in water. These proposals seem worthy of attention. There was a discussion of wells. COMMITTEE REPORTS 14. a. Executive-Administrative-Organizational Committee (Collett/Summerfield) Alternate: Armstrong 1) Meeting scheduled for August 21, 4:00 p.m. Director Armstrong will attend for President Collett. c. Finance-Accounting Committee (Mills/Beverage) Alternate: Summerfield 1) Minutes of the meeting held July 10. 2) Meeting scheduled for August 14, 4:00 p.m. d. Personnel-Risk Management Committee (Summerfield/Armstrong) Alternate: Mills 1) Meeting scheduled for August 13, 4:00 p.m. -5- 2007-124 e. Planning-Engineering-Operations Committee (Armstrong/Mills) Alternate: Collett 1) Meeting scheduled for August 2, 4:00 p.m. e. Public Information Committee (Collett/Beverage) Alternate: Armstrong 1) Meeting scheduled for August 7, 4:00 p.m. f. Building Ad Hoc Committee (Summerfield/Beverage) Alternate: Armstrong 1) Minutes of meeting held July 19. There was discussion about the water feature for the new administration building, prevailing wages requirement and insurance and bonding coverages required. Staff reported on status of a draft amendment between YLWD and City of Placentia regarding street improvement in Richfield Road. Status reports were presented by staff on: the new roof, conflicting utility relocation work, interior design color selection and power pole relocation. 2) Meeting scheduled for August 16, 4:00 p.m. g. MWDOC Ad Hoc Committee (Beverage/Collett) Alternate: Mills 1) Meeting scheduled for August 28, 4:00 p.m. h. City of Placentia Ad Hoc Committee (Beverage/Payne) 1) Meeting scheduled for August 1, 10:00 a.m., Richfield Plant. INTERGOVERNMENTAL MEETINGS 15. a. Yorba Linda City Council, July 17 President Collett attended. Comments were made about the District's rates. b. MWDOC Board, July 18 (Staff) No one attended. c. OCWD Board, July 18 (Staff) No one attended. -6- 2007-125 d. Yorba Linda Planning Commission, July 25. No one attended. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after July 26, 2007. Agenda is available in the District office prior to meeting. Auaust 2007 MWDOC/MWD Joint Workshop, Au 1, 8:30 a.m. Staff OCWD Board, Au 1, 5:00 .m. Staff Planning-Engineering-Operations Committee, Au 2, 4:00 p.m. Armstrong/Mills WACO, Au 3, 7:30 a.m. Mills Public Information Committee, Au 7, 4:00 p.m. Collett/Beverage Yorba Linda City Council, Au 7, 6:30 .m. Collett Personnel-Risk Management Committee, Au 13, 4:00 p.m. Summerfield/Armstron Finance-Accounting Committee, Au 14, 4:00 p.m. Mills/Beverage Yorba Linda Planning Commission, Au 15, 6:30 .m. Armstrong MWDOC Board, Au 15,8:30 a.m. Staff OCWD Board, Au 15, 5:00 .m. Staff Building Ad Hoc Committee, Au 16, 4:00 p.m. Summerfield/Bevera e Executive-Admin-Organizational Committee, Aug 21, 4:00 p.m. Collett Summerfield/Alt. Armstrong Yorba Linda City Council, Au 21, 6:30 .m. Mills Yorba Linda Planning Commission, Au 29, 6:30 p.m. Summerfield September 2007 Yorba Linda City Council, Sept 4, 6:30 p.m. Collett MWDOC/MWD Joint Workshop, Sept 5, 8:30 a.m. Staff OCWD Board, Sept 5, 5:00 p.m. Staff WACO, Sept 7, 7:30 a.m. Mills Public Information Committee, Sept 4, 4:00 p.m. Collett/Beverage Plan nin -En ineerin -Operations Committee, Sept 6, 4:00 .m. Armstrong/Mills Personnel-Risk Management Committee, Set 10, 4:00 .m. Summerfield/Armstron Finance-Accounting Committee, Set 11, 4:00 p.m. Mills/Beverage Yorba Linda Planning Commission, Set 12, 6:30 .m. Armstrong Executive-Admin-Or anizational Committee, Sept 18, 4:00 p.m. Collett/Summerfield Yorba Linda City Council, Set 18, 6:30 .m. Mills MWDOC Board, Sept 19, 8:30 a.m. Staff OCWD Board, Sept 19, 5:00 p.m. Staff Building Ad Hoc Committee, Sept 20, 4:00 .m. Summerfield/Bevera e Yorba Linda Planning Commission, Sept 26, 6:30 .m. Summerfield CONFERENCES AND SEMINARS 16. 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 -7- 2007-126 ADJOURNMENT The Board of Directors voted to adjourn at 11:27 a.m. to a regular meeting of the Board of Directors scheduled for Thursday, August 9, 2007, at 9:00 a.m., at 4622 Plumosa Drive, Yorba Linda 92886. ichael A. Payne Secretary -8-