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HomeMy WebLinkAbout2006-07-13 - Board of Directors Meeting Minutes2006-101 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING July 13, 2006 The July 13, 2006 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Paul R. Armstrong at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL Paul R. Armstrong, President Ric Collett, Vice President Michael J. Beverage William R. Mills John W. Summerfield STAFF PRESENT Michael A. Payne, General Manager Arthur G. Kidman, General Counsel Kenneth Vecchiarelli, Asst. G.M. Lee Cory, Operations Manager Gina Knight, HR Manager Diane Cyganik, Finance Director Michael Robinson, Asst. Administrator Amelia Cloonan, Admin Secretary DIRECTORS ABSENT AT ROLL CALL None INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Keith Khorey, Wells Capital Management SPECIAL RECOGNITION Assistant General Manager Vecchiarelli introduced Ariel Bacani and Anh Nguyen, newly hired Engineering Technicians I. President Armstrong welcomed both employees to the Yorba Linda Water District. Ariel Bacani and Ahn Nguyen left the meeting at 8:32 a.m. CONSENT CALENDAR (Items 1 through 4) On a motion by Director Beverage, seconded by Vice President Collett, the Board of Directors voted 5-0 to approve the Consent Calendar. Minutes of the Regular Board of Directors meeting held June 22, 2006. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $1,365,356.30. 3. Terms and Conditions for Water and Sewer Service with MBK Homes, Tr. 17079. Recommendation: Approve the Terms and Conditions for Water and Sewer Service with MBK Homes, Job No. 200619. -1- 2006-102 4. Utility Agreement for Vista Loma Sewer Relocation. Recommendation: Authorize the General Manager to execute a Utility Agreement with CAL TRANS to accommodate their railroad grade separation project and reimburse the District for the Vista Loma Sewer Relocation Project, Job No. 200604. ADJOURN TO CLOSED SESSION 5. There was no Closed Session. ACTION CALENDAR 6. Quarterly Investment Report. Keith Khorey of Wells Capital Management recapped the information presented in the quarterly report. Income from the portfolio is at about 4.93%. In response to a question about whether the District's guidelines are reasonable or too restrictive, Mr. Khorey responded the guidelines are reasonable. On a motion by Director Beverage, seconded by Director Mills, the Board of Directors voted 5-0 to receive and file the Quarterly Investment report. 7. Resolution 06-04 Establishing Policies and Procedures in Accordance with SB 1087 Concerning Available Water for Affordable Housing. General Manager Payne presented the report. There is a law stating the District must comply by July 1, 2006, although there is no fine or penalty for non compliance. General Counsel Kidman commented the basic tenet of a public utility is to provide service to all without discrimination. SB 1087 requires implementation of a preference, which is essentially illegal. There was discussion about the possible implications of adopting the resolution. Director Beverage did not want to set up preference for affordable housing over other types of housing. President Armstrong wanted to modify the language to treat all customers alike. General Counsel Kidman further commented that at some point the District could be mandated to adopt the policy but could adopt a policy stating the District serves all who comply with the rules and provides equal preference. During the discussion, Assistant General Manager Vecchiarelli spoke about a request made by one of the three affordable housing projects in Yorba Linda, Southern California Housing Corporation. They have asked for the District's support for the project to rehabilitate the apartment complex located south of the District offices on Plumosa Drive. Mr. Vecchiarelli stated the District would like to send a letter in support of the project. It was agreed the letter of support should be sent. On a motion by Director Beverage, seconded by Vice President Collett, the Board of Directors voted to refer the Establishment of Policies and Procedures in Accordance with SB 1087 Concerning Available Water for Affordable Housing to the Executive-Administrative-Organizational Committee for consideration and for return to the Board at a future date. Mike Robinson left the meeting at 9:23 a.m. -2- 2006-103 8. Financial Statements for the Eleventh Month of Fiscal Year 2005-2006 Period Ending May 31, 2006. Finance Director Cyganik presented the report. Locke Ranch sewer fees will come to the Board of Directors at the Board meeting on August 10 in a public hearing. The final audit starts next month. On a motion by Director Beverage, seconded by Director Mills, the Board of Directors voted 5-0 to receive and file the financial statements for the eleven months of fiscal year 2005-2006 ending May 31, 2006. Diane Cyganik and Keith Khorey left the meeting at 9:30 a.m. 9. Status Report of Water Pressure issues. General Manager Payne stated this Issue was discussed at the Planning-Engineering-Operations Committee meeting on July 6. Director Summerfield said the committee discussed a pilot program for the homes at Yorba Linda Boulevard and Village Center Drive. A questionnaire was mailed to ten homeowners about a week ago. Two responses were received to date. The questions involved whether the homeowners are willing to install pressure regulators at their cost or whether they prefer the District install the regulators and the homeowners take over maintenance. One of the letters received was in favor of installing pressure regulators. The other was not in favor. Director Summerfield said the committee foresaw problems if the pressure rose from 40 to 65 psi. If new appliance hoses are not installed at the same time as the pressure regulators, there is a possibility the hoses would break, and flooding would occur. Who would be responsible for damages? Diane Cyganik left the meeting at 9:50 a.m. At a meeting of the Personnel-Risk Management Committee on July 11, the idea was proposed that the District could install pressure regulators for those homeowners who wanted them. If homeowners did not want the regulators installed, the District would install them at the meter box. If in the future a homeowner wanted to increase pressure, they could sign a release. The homeowner would be required to install a pressure regulator valve at the master valve, and pressure would be increased. General Counsel Kidman stated if some homeowners choose to protect themselves and some don't, he doesn't think the District has tremendous legal exposure at that point. Mr. Kidman continued to say the District needs to develop a policy and consider what could happen and what needs to be looked at. Notification needs to be determined in case a house is sold to a new resident. General Manager Payne stated the District is moving forward with the Low Pressure Area program. The PEO Committee wanted to update the Board of Directors. A recess was declared at 10:00 a.m. The Board reconvened at 10:08 a.m. with all Directors present. -3- REPORTS, INFORMATION ITEMS AND COMMENTS 10, a. President's Report There was no report. 2006-104 b. Directors Reports Director Beverage commented on the check signing key policy. The policy states the Director must be present with the key. He wants a change in the policy. It is an inconvenience to staff, and there must be a better way to handle the check signing key. Vice President Collett stated the policy was reviewed because of the possibility of fraud. Director Beverage feels the General Manager is in charge. General Counsel Kidman stated he is not aware of any other District with this policy. The auditors need to be consulted as to adequate controls to meet standards. Director Mills wants to refer the matter to staff to refer to the auditors and then have the issue brought to the Finance Committee with a report. The entire Board concurred. c. General Managers Report General Manager Payne reported that: 1) The City of Yorba Linda, Parks and Recreation Committee, is holding a meeting July 20 regarding a new park site across from the Fairmont Reservoir. Staff will attend to present the Yorba Linda Water District's idea of the city utilizing all reservoir surfaces. 2) General Counsel Kidman and General Manage Payne prepared a letter regarding OCWD Annexation. The Board of Directors concurred and directed staff to send this letter out. 3) Regarding Prop 84, ACWA Region 10 is gathering survey information. The District is studying the issue and will refer it to the Executive Committee at its July 18 meeting. General Counsel Kidman said the big concern is that the credibility of the water community is being preyed upon for what is really an eco bond and other purposes. The trend in Region 10 is to oppose the bond. The sense is ACWA overall will go the other way. The issue will need a response prior to the next Board meeting, so that is why it will go to the Executive Committee. 4) Forms 460 or 470 are due to be filed on July 31. Please submit by the Board meeting on July 27. d. General Counsel's Report In light of the question of affordable housing, General Counsel Kidman mentioned an article in the newspaper on homes in Huntington Beach and a restriction on the selling price for those homes. The offices of McCormick, Kidman & Behrens have relocated to 650 Town Center Drive. General Counsel Kidman expressed gratitude to the District for the expressions of sympathy he received on his sons passing. -4- 2006-105 COMMITTEE REPORTS 11. a. Executive-Administrative-Organizational Committee (Armstrong /Collett) Alternate: Beverage 1) Minutes of meeting held June 20 appeared in the agenda. Items covered included: Pre-annexation agreement between YLWD and Shapell Industries, Inc., nominations for Special District Representatives for Orange County LAFCO, Sacramento Advocates update, Townsed Public Affairs update, committee assignments with the cities of Yorba Linda and Placentia, Plumosa office appraisal and a report on a meeting with ATS Communications. President Armstrong commented there is a correction in Item 6 of the Minutes. The word "new" should be "need". Staff will correct the minutes. 2) Meeting scheduled for July 18, 4:00 p.m. b. Finance-Accounting Committee (Collett/Mills) Alternate: Summerfield 1) Minutes of meeting held July 10 will appear in the Board agenda for July 27. Vice President Collett reported on the meeting. A quarterly status report on investments ending June 30, 2006 was presented by Keith Khorey of Wells Capital. The investment report for May 2006 was covered. Information, items included a report on OCWD Basin Equity Assessments, BPP and Replenishment Assessments for FY 2006-07, a report on MWDOC's new rates and chages for FY 2006-07 and Fluoridation Treatment Capital Cost Estimate from the Department of Health Services. 2) Meeting scheduled for August 14, 4:00 p.m. c. Personnel-Risk Management Committee (Beverage/Summerfield) Alternate: Collett 1) Minutes of meeting held July 11 will appear in the Board agenda for July 27. Director Beverage reported the items covered at the meeting included: Workers Compensation Program Renewal & Deposit Premium, status on recruitments, status on liability claims, long-term disability plan rates for 7/1/06 through 6/30/08, Vision Serve Plan rates for 8/1/06 through 7/31/08 and ACWA/JPIA Risk Assessment and Training Report. Low pressure information was also discussed. Director Summerfield reported there was discussion about holding a possible workshop on the salary and benefits survey. Staff will advise if necessary. 2) Meeting scheduled for August 8, 4:00 p.m. -5- 2006-106 d. Planning-Engineering-Operations Committee (Summerfield/Mills) Alternate: Armstrong 1) Minutes of meeting held July 6 appeared in the agenda. The Committee discussed a Draft Mitigated Negative Declaration for the Highland Reservoir Replacement Project and a Draft Mitigated Negative Declaration for the Richfield Administration Building. Director Summerfield explained value engineering. An outside consultant would look at alternatives to what was originally planned for the Highland Reservoir Replacement Project. The Committee also discussed a Utility Agreement with CalTrans to reimburse the District for relocation of a sewer main at Vista Loma and Esperanza Road. Standing items included: a status report on the meter replacement project, capital improvement projects status report, In-Lieu status report, and water pressure status report. 1) Meeting scheduled August 3, 4:00 p.m. Public Information Committee (Mills/Collett) Alternate: Summerfield 1) Meeting scheduled for August 7, 4:00 p.m. g. Building Ad Hoc Committee (Beverage/Summerfield) Alternate: Collett 1) Meeting scheduled for July 20, 4:00 p.m. h. MWDOC Ad Hoc Committee (Armstrong/Beverage) Alternate: Mills 1) Minutes of meeting held June 27. Director Beverage commented that the minutes were covered verbally at the last Board meeting. Discussion at the meeting included: 2nd Lower Feeder Extension to EOCF#2 and the potential service connection into YLWD's lower zone, MWDOC Budget approved and content, Metropolitan Integrated Area Study opportunities, changes to Metropolitan's Local Resources Program and Chinatown issues. 2) Meeting scheduled for August 22, 4:00 p.m. -6- 2006-107 INTERGOVERNMENTAL MEETINGS 12. a. Yorba Linda Planning Commission, June 28. Director Mills attended. Second story additions and the Nextel cell site were the main items covered at the meeting. b. WACO, July 7. Director Mills did not attend. He did attend the Prado Dam Water Conservation Memorandum of Agreement signing on July 7. He spoke with Congressman Miller about the District's grant application. c. MWDOC/MWD Joint Workshop, July 5. There was nothing of concern to the District. d. OCWD Board, July 5 - Cancelled e. Yorba Linda Planning Commission, July 12. No Director attended. Director Mills reported on his attendance at the ISDOC Quarterly meeting held June 29. Daniel Weintrab of the Sacramento Bee was the speaker. The results of the LAFCO election were not made available at the meeting. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after July 13, 2006. Agenda is available in the District office prior to meeting. Executive-Admin-Or anizational Committee, Jul 18, 4:00 .m. Armstrong/Collett Yorba Linda City Council, Jul 18, 6:30 .m. Collett/ Alt. Summer-field MWDOC Board, Jul 19, 8:30 a.m. Staff OCWD Board, Jul 19, 5:00 p.m. Staff Yorba Linda Planning Commission, Jul 26, 6:30 p.m. Mills/ Aft. Summerfield Anrnict Yorba Linda City Council, August 1, 6:30 .m. Collett/ Alt. Summerfield MWDOC/MWD Joint Workshop, August 2, 8:30 a.m. Staff OCWD Board, August 2, 5:00 .m. Staff Planning-Engineering-Operations Committee, August 3, 4:00 p.m. Summerfield/Mills WACO, August 4, 7:30 a.m. Mills Personnel-Risk Management Committee, August 8, 4:00 .m. Bevera e/Summerfield Yorba Linda Planning Commission, August 9, 6:30 p.m. Mills//A/t. Summerfield Finance-Accountin Committee, August 14, 4:00 .m. Collett/Mills Executive-Admin-Or anizational Committee, August 15, 4:00 p.m. Armstrong/Collett Yorba Linda City Council, August 16, 6:30 .m. Collett/ Alt. Summerfield MWDOC Board, August 16, 8:30 a.m. Staff OCWD Board, August 16, 5:00 p.m. Staff MWDOC Ad Hoc Committee meeting, August 22, 4:00 .m. Armstron /Bevera e Yorba Linda Planning Commission, August 23, 6:30 p.m. Mills/ Alt. Summerfield -7- 2006-108 CONFERENCES AND SEMINARS 13. 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. Water Education Foundation: 2006 Water Policy & Law Briefing, July 20-21, Garden Grove. Director Mills will attend. b. The Politics of Funding Water Infrastructure: The Critical Role that Water Leaders Play in Developing Legislative Policy, Tues., August 1, 6:00 p.m., sponsored by MWDOC. The keynote speaker is State Senate Minority Leader Dick Ackerman. Director Mills and General Manager Payne will attend. ADJOURNMENT On a motion by Director Beverage, seconded by Director Summerfield, the Board of Directors voted 5-0 to adjourn at 10:58 a.m. to a regular meeting of the Board of Directors scheduled for Thursday, July 27, 2006, at 8:30 a.m., at 4622 Plumosa Drive, Yorba Linda 92886. NWfcffa-el A. Payne Secretary/General Manager -8-