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HomeMy WebLinkAbout2005-10-13 - Board of Directors Meeting Minutes2005-147 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING October 13, 2005, 8:30 A.M. The October 13, 2005 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Michael J. Beverage at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL STAFF PRESENT Michael J. Beverage, President Kenneth R. Vecchiarelli, Asst. G.M. Paul R. Armstrong, Vice President Arthur G. Kidman, General Counsel Ric Collett Beverly Meza, Business Manager William R. Mills Lee Cory, Operations Manager Michael Robinson, Asst Administrator DIRECTORS ABSENT AT ROLL CALL Amelia Cloonan, Admin Secretary John W. Summerfield VISITORS PRESENT Timothy Hoban, Regional Counsel, Toll Brothers Walt Tamulinas, ERA North Orange County Real Estate Kelly Givens, J.F. Shea Co., Inc. Debbie Trabattoni, The OC Advocacy Group Melissa Reed, Dokich Court Reporters, Inc. SPECIAL RECOGNITION AND PRESENTATIONS Beverly Meza, Business Manager, introduced Rick DeAnda, Meter Reader II, and recognized him for five years service to the Yorba Linda Water District. Beverly Meza also introduced Maria Trujillo, Accounting Assistant I, and recognized her for one year of service to the Yorba Linda Water District. Rick DeAnda and Maria Trujillo left the meeting at 8:35 a.m. CONSENT CALENDAR (Items 1 through 6) On a motion by Vice President Armstrong, seconded by Director Collett, the Board of Directors voted 4-0 to approve the Consent Calendar. 1. Minutes of the Regular Board of Directors meeting held September 22, 2005. Recommendation: Approve minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $2,588,668.93. -1- 2005-148 3. Declaration of Restrictive Covenants - 19882 Red Roan Lane Recommendation: Authorize the President and Secretary to execute the Declaration of Restrictive Covenants Agreement with Mr. & Mrs. Joseph Pham, subject to approval as to form by General Counsel. 4. Declaration of Restrictive Covenants - 17838 Anna Marie Road Recommendation: Authorize the President and Secretary to execute the Declaration of Restrictive Covenants Agreement with Mr. & Mrs. Herman Espejo, subject to approval as to form by General Counsel. 5. Central Yorba Linda Pipeline Project Recommendation: Approve Progress Payment No. 5 in the net amount of $860,892.56 to Vido Artukovich and Sons, Inc./Vidmar, Inc., a Joint Venture, for construction of the Central Yorba Linda Pipeline Project. - Job No. 9804 6. Consider claim filed by William & Barbara Taylor - 18991 Oriente Drive Recommendation: That the Board of Directors reject and refer the claim to ACWA/JPIA. President Beverage opened the floor for public comment Timothy Hoban, Toll Brothers, wanted to speak about Well 18 and Village IV offsite sewer improvements, but he wanted to address some other matters as well. He met once with General Manager Payne and General Counsel Kidman. The meeting was not very productive. This morning he wants to raise the point that for Vista Del Verde they are still open to the possibility of some sort of interim solution that will protect the district from all the issues about which the District is concerned and make sure there are no more delays in the project. He asks this be on the table in closed session today. Mr. Hoban wants to propose to the District, and he spoke to General Counsel Kidman last evening, that now would be a good time to bring in a neutral third party to work with the parties. He suggested former District Director Bret Barbre might be good in that role and also thought an ad hoc committee from the Board members could be involved. He is anxious to hear what the information on the Well reports. President Beverage stated that the two information item reports are to the Board, so they are not open to discussion. Anything on the reports could be discussed with staff. Kelly Given, J.F. Shea Co., Inc., stated they are one of the major builders at Vista Del Verde. They are working on the San Lorenzo community, have permits, and have constructed the fifth phase of eleven phases. They were scheduled to commence construction of the sixth phase on October 1, but they are halted at this point. As of October 1, they are incurring damages: construction loans, sales staff, trade partners and increased cost of supplies and materials. This delay is causing them significant financial hardship. They ask the Board to consider allowing them to continue with construction while a resolution is being worked out. -2- 2005-149 Walt Tamulinas, ERA North Orange County Real Estate, voiced his concern about delays in the Toll Del Mar project. His family is purchasing a home there. They are incurring some damages because of the delay. He spoke to General Manager Payne. Next he will call Lynn Daucher and the Governor's office. He came to the Board meeting today to implore the Board to move negotiations along swiftly. He stated real estate customers have lost interest because of the delays. This is a very litigious business. If the City of Yorba Linda and the District are in involved in litigation, then the customers will end up paying the costs. General Counsel Kidman entered the meeting at 8:44 a.m. The Board of Directors adjourned to Closed Session at 8:45 a.m. All Directors were present. Also present were Assistant General Manager Vecchiarelli, General Counsel Kidman and Debbie Trabattoni. ADJOURN TO CLOSED SESSION 7. a. Conference with Legal Counsel regarding existing litigation to which the District is a party. (Justification for Closed Session is Government Code Section 54956.9(a)) Orange County Water District vs. Yorba Linda Water District. Debbie Trabattoni left the meeting at 9:03 a.m. b. Conference with Legal Counsel regarding litigation to which the District is a party. (Justification for Closed Session is Government Code Section 54956.9(a)) Vista Del Verde II, L.P. and SWEPI LP vs. Yorba Linda Water District. c. Conference with Legal Counsel regarding anticipated litigation. (Justification for Closed Session is Government Code Section 54956.9(b)) (one case) The Board of Directors came out of Closed Session at 10:42 a.m. RECONVENE IN OPEN SESSION The Board of Directors reconvened in open session at 10:49 a.m. Tim Hoban, Kelly Given, Melissa Reed and Amelia Cloonan rejoined the meeting. CLOSED SESSION REPORT President Beverage asked General Counsel Kidman and General Manager Payne to take into consideration Tim Hoban's comments. General Counsel Kidman stated the District is favorably inclined to have a mediator of some kind to see if the parties can find a 100% settlement of all issues that exist at this time. There is no inclination to talk about having any issues hold over for future resolution. Tim Hoban stated he would be available to follow up this afternoon. General Counsel Kidman was not available, and General Manager Payne is out of town through Sunday evening. -3- 2005-150 ACTION CALENDAR President Beverage turned the meeting over to Vice President Armstrong and excused himself from the meeting during discussion of item 8 because of a financial conflict of interest involving Shapell Industries. 8. Consider approval of an Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions with Upper K-Shapell on a parcel of District land (0.327 acres) located at the Fairmont Reservoir. Assistant General Manager Vecchiarelli presented the item. Vice President Armstrong noted the Executive Administrative- Organizational Committee discussed this item. Assistant General Manager Vecchiarelli confirmed the appraised value of the property is $114,000. On a motion by Director Collett, seconded by Director Mills, the Board of Directors voted 3-0-1, with President Beverage abstaining, to authorize the Vice President and Secretary to execute an Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions by and between Yorba Linda Water District, a county water district and Upper K-Shapell Joint Venture, a California joint venture, subject to review as to form by General Counsel. President Beverage reentered the meeting. Assistant General Manager Vecchiarelli pulled Item 9 stating the item would be brought back to the Board at a later date. 9. Consider an Amendment to the Professional Services Agreement with Carollo Engineers for Santiago Booster Station Upgrades. Recommendation: That the Board of Directors authorize the President and Secretary to execute an Amendment to the Professional Services Agreement with Carollo Engineers, subject to review as to form by General Counsel, for the Santiago Booster Station Upgrades - Job No. 200028. 10. Consider changing Board and Committee Meeting dates in November. On a motion by Director Mills, seconded by Director Collett, the Board of Directors voted 4-0 to approve adjourning the Thursday, November 10 Board of Directors meeting to Tuesday, November 22, 2005 at 8:30 a.m. and that the MWDOC Ad Hoc meeting be rescheduled to Monday, December 5 at 4:00 p.m. DISCUSSION ITEM 11. Status report on Well No. 18 analysis and testing of pumping capacity influence on Richfield wells. Assistant General Manager Vecchiarelli presented the report and apologized to the Board of Directors for not having a written report to present to them. Staff is still negotiating on additional work to be performed. The draft report CDM was prepared to submit was not accepted and has not yet been revised by CDM. An additional proposal for work has been submitted. President Beverage stated he is disappointed there is no written report. -4- 2005-151 On a motion by Director Mills, seconded by Vice President Armstrong, Assistant General Manager Vecchiarelli was directed to work with CDM on specific tests to be completed by November 10 and to instruct staff to finalize the report and enter into an addendum with CDM to prepared and deliver a final report by November 10. Tim Hoban asked if there were any CDM draft reports ready to review. Ken Vecchiarelli responded there were not. President Beverage asked Mr. Hoban to please call General Manager Payne or Assistant General Manager Vecchiarelli this afternoon (October 13) for any further details the Board does not have. President Beverage asked Assistant General Manager Vecchiarelli to give a verbal staff report at the next Board meeting as to where the District is now and how the District is going to complete what needs to be done. Assistant General Manager Vecchiarelli stated the addendum to the consultant's agreement will be brought to the Board as an agenda item. It will ratify the intent. Timeframes will go in sync by November 10. 12. Report on Vista Del Verde Development Village IV offsite sewer improvements. Assistant General Manager Vecchiarelli has gathered information. There is no written report. The question posed by Mr. Hoban is why the District has failed to act on sewer plan check that will serve Village IV. Mr. Vecchiarelli's understanding is that the sewer line in question is in the extension of Lakeview Avenue in what will be the new entrance to the golf course, and also down Lakeview to Bastanchury Road. Tim Hoban commented the plans submitted in March 2005 are the ones to which he is referring. Mr. Vecchiarelli believes they are talking about the same location. There is no FFDCA for these facilities. Tim Hoban is surprised the District has not required that type of agreement in the past. Mr. Vecchiarelli reiterated the history using a map of "Vista Del Verde Backbone Sewer Facilities". He identified the existing backbone sewer infrastructure constructed for the Vista Del Verde development, and he pointed out the trunk, subtrunks, laterals, and their corresponding agreements (FFDCA's) and gave the dates these agreements were executed. The District received a revised area master plan in June 2005 for the specific sewer system proposed for Village IV, which showed a substrunk sewer line running through offsite parcels to Bastanchury Road. In order to put sewer lines through these properties, the District needed rights of way. The District requested dedicated easements to construct these sewer lines from Vista Del Verde. There is a parcel the District has not yet received an easement for in the second option area. Mr. Vecchiarelli proposes the District and developer come together on this issue. Tim Hoban and Kelly Given left the meeting at 11:27 a.m. -5- 2005-152 REPORTS, INFORMATION ITEMS AND COMMENTS 13. a. President's Report President Beverage received a letter from Bill Campbell's office and put it on the table for information purposes. b. Directors Reports There were no reports. c. General Managers Report There was no report. d. General Counsel's Report General Counsel Kidman gave an alert to the Board. One of California's Court of Appeal has found Cal Fed EIR to be inadequate. The draft was put out a long time ago. MWDOC's issues were resolved in southern counties, but in northern counties some agricultural interest and other interests continued to fight. One of the principal inadequacies was failure to indemnify reduction of exports to the south as a project alternative and the failure to analyze that alternative. Population growth in the south counties is a big water issue in Southern California. General Counsel Kidman will try to get more information so the board will be aware of the implications. COMMITTEE REPORTS 14. a. Executive-Administrative-Organizational Committee (Beverage/Armstrong) The minutes of the meeting held October 5 were included in the agenda. The items discussed included: design/build vs design/competitive bid process on Highland Reservoir Replacement project, professional services agreement with Tetra Tech for Water Engineering Consulting Services, change Board and Committee meeting dates in November and December, legislative activities update, Global Signal property purchase request, approval for sale of real property and joint escrow instructions with Upper K-Shapell. Meeting scheduled for November 15, 4:30 p.m. President Beverage scheduled a meeting for October 26 at 4:00 p.m. b. Finance-Accounting Committee (Mills/Collett) Minutes of the meeting held October 11 will appear in the Board agenda on October 27. Director Mills said the committee recommended approval of a professional services agreement to conduct a cut-off audit for Beverly Meza. They looked over the District investment policy. There were a number of recommendations made by the new investment counselor. A handout was presented to the Directors with their mail. Wells Fargo is not yet managing the District's money. Staff is asked to be sure this happens as soon as possible. Meeting scheduled for November 8, 4:00 p.m. -6- 2005-153 c. Personnel-Risk Management Committee (Collett/Mills) The meeting of October 10 was rescheduled to October 18 at 8:30 a.m. Meeting scheduled for November 14, 4:00 p.m. d. Planning-Engineering-Operations Committee (Armstrong/Beverage) Meeting held October 6. President Beverage attended in place of Director Summerfield. Vice President Armstrong stated the committee talked about sewer treatment in the downtown redevelopment area, telephone and microwave system update, the sewer system management update, the water system master plan and hydraulic model update, groundwater production capacity study and the pipeline break on Ohio Street. Meeting scheduled for November 3, 4:00 p.m. e. Public Information Committee (Summerfield/Beverage) Meeting scheduled for November 7, 4:00 p.m. f. Building Ad Hoc Committee (Beverage/Summerfield) The meeting of September 21 was not held. A Board workshop is to be scheduled. g. MWDOC Ad Hoc Committee (Beverage/Armstrong) Minutes of meeting held September 26 were included in the Agenda. The Committee discussed the treated water peaking charge study by Met, Tier 11Tier 2 projections for 2005 and 2006 and mitigation strategies, the hazard mitigation plan and 2006 emergency preparedness. INTERGOVERNMENTAL MEETINGS 15. a. Yorba Linda Planning Commission, September 28. Director Mills attended. An expansion of a residential care facility was denied. b. Yorba Linda City Council, October 4. Director Collett reported there was nothing of interest to the District. c. WACO, October 7. Director Mills attended. The Eastern Municipal Water District has introduced legislation whereby discharge water would be owned. There were two presentations, one about the Bluebird landslide in Laguna Beach and one by Tom Levy about the Colorado River. d. Yorba Linda Planning Commission, October 12. Vice President Armstrong attended. One item regarded a homeowner who wanted to grade his property but did not want to have the dirt removed. Staff objected, because the property was adjacent to an easement and a sewer line making it difficult to maintain. The item was continued. The Yorba Linda Planning Commission meeting scheduled for November 23 has been cancelled. -7- 2005-154 BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after October 13, 2005. Agenda is available in the District office prior to meeting. October Yorba Linda City Council, October 18, 6:30 .m. Summerfield MWDOC Board, October 19, 8:30 a.m. Staff OCWD Board, October 19, 5:00 p.m. Staff Yorba Linda Planning Commission, October 26, 6:30 .m. Collett November Yorba Linda City Council, November 1, 6:30 p.m. Collett MWDOC/MWD Joint Workshop, November 2, 8:30 a.m. Staff OCWD Board, November 2, 5:00 p.m. Staff Planning-Engineering-Operations Committee, November 3, 4:00 .m. Armstron /Summerfield WACO, November 4, 7:30 a.m. Mills Public Information Committee, November 7, 4:00 p.m. Summerfield/Bevera e Finance-Accounting Committee, November 8, 4:00 .m. Mills/Collett Yorba Linda Planning Commission, November 9, 6:30 p.m. Mills Personnel-Risk Management Committee, November 14, 4:00 .m. Collett/Mills Executive-Admin-Or anizational Committee, November 15, 4:00 .m. Bevera a/Armstron Yorba Linda City Council, November 15, 6:30 .m. Summerfield MWDOC Board, November 16, 8:30 a.m. Staff OCWD Board, November 16, 5:00 .m. Staff indicates this person is substituting for the committee member. 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. State of the City Address & Citizen of the Year Award City of Yorba Linda - Thursday October 20, 2005, 12:00 noon. Vice President Armstrong, Director Mills, General Manager Payne and Assistant General Manager Vecchiarelli will attend. b. 25th Biennial Groundwater Conference and 14th Annual Groundwater Resources Association Meeting and Conference - "Past Lessons and Future Prospects" - October 25-26, 2005; Sacramento Convention Center, Sacramento, CA No one will attend. -8- 2005-155 ADJOURNMENT On a motion by Director Mills, seconded by Vice President Armstrong, the Board of Directors voted to adjourn at 11:45 a.m. to a regular meeting of the Board of Directors scheduled for Thursday, October 27, 2005 at 8:30 a.m., at 4622 Plumosa Drive, Yorba Linda, CA 92886. Kenneth R. Vecchiarelli Assistant Secretary/Assistant General Manager -9- 2005-156