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HomeMy WebLinkAbout2006-10-12 - Board of Directors Meeting MinutesMINUTES OF THE 2006-153 YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING October 12, 2006 The October 12, 2006 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Paul R. Armstrong at 9:30 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 Kenneth R. Vecchiarelli, Asst. G.M. Arthur G. Kidman, General Counsel Lee Cory, Operations Manager Diane Cyganik, Finance Director Amelia Cloonan, Admin Secretary Dave Barmer, Maint. Distr. Operator III DIRECTORS ABSENT AT ROLL CALL None INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Ramon Sanchez, Yorba Linda resident Mr. Sanchez addressed the Board regarding the extension of the sewer line in Grandview Avenue north of Buena Vista Avenue. Mr. Sanchez recounted the history of how the District was asked to extend the sewer project in late 2003 and how he worked to gather several of his neighbors to commit to participate in the project. Mr. Sanchez expressed his concern that the project has been delayed several years by the District and that costs have escalated enormously. He expressed his opinion that the homeowners should not be responsible for these cost increases. Assistant General Manager Vecchiarelli stated the sewer extension was tied into a larger pipeline replacement project in the area, in an attempt to benefit through economy of scale, but perhaps this end result was not achieved. The larger project is currently under construction. This matter will be discussed further with the Planning-Engineering- Operations Committee on November 2, 2006 Diane Cyganik, YLWD Finance Director, and Keith Khorey, Wells Capital Management, entered the meeting at 9:38 a.m. Mr. Sanchez left the meeting at 9A5 a.m. SPECIAL RECOGNITION Lee Cory, Operations Manager, introduced Dave Barmer, Maintenance Distribution Operator III who was recognized for completing the ACWA/JPIA Supervisor Basics Specialty Program - August 2006. -1- 2006-154 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. 1. Minutes of the Regular Board of Directors meeting held September 28, 2006. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $1,755,216.18. 3. Mayor's 2006 State of the City Address and Citizen of the Year Award Ceremony - Silver Sponsorship. Recommendation: Authorize staff to commit to a Silver Sponsor in the amount of $500. 4. Construction of Lakeview Booster Pump Station. Recommendation: Approve Progress Payment No. 5 in the net amount of $193,729.86 to Schuler Engineering Corporation for the construction of the Lakeview Booster Station, Project No. 200505. ADJOURN TO CLOSED SESSION 5. No items. ACTION CALENDAR 6. Wells Capital Investment Report for the first quarter of fiscal year 2006/07. Keith Khorey, Wells Capital Management, presented the report and gave a brief overview of performance for the year since October 25, 2005. He explained what Wells has been doing, what their strategy has been and where the investments are now. He proceeded to go over the investment outlook highlights. There was a discussion about housing markets, costs, sales and pricing. This report was for information only. No Board action was required. Diane Cyganik and Keith Khorey left the meeting at 10:08 a.m. Director Beverage recused himself from participating in discussion and voting on Item 7 due to an economic conflict of interest. 7. Facility Finance, Design and Construction Agreement for Via Del Caballo and Palm Avenue Sewers. Assistant General Manager Vecchiarelli presented the report. Via Del Caballo is a private, narrow street. The District is playing a lead role as administrator of this project. Shapell is fully funding the project. One component of the agreement calls for reimbursement to Shapell. The homeowners on Del Caballo and Palm may pay a connection fee, and in accordance with District Resolution 100, the District charges a frontage fee and refunds this to the developer. -2- 2006-156 On a motion by Director Mills, seconded by Vice President Collett, the Board of Directors voted 4-0-1, with Director Beverage abstaining from voting, to authorize the President and Secretary to execute the Facilities Finance, Design and Construction Agreement with Shapell Industries, Inc., subject to execution by 4 Shappell and approval as to form by General Counsel for the Via Del Caballo and Palm Avenue Sewer, Job No. 200602. Diane Cyganik reentered the meeting at 10:15 a.m. DISCUSSION ITEMS 8. Consider amending the policy of reimbursement of expenses incurred by Directors and Director Ethic Training. General Counsel Kidman stated the District is required by law to establish the maximum reimbursement for expenses for travel, meals and lodging. The main theme for the Board to discuss was that in some cities it is difficult to cover those expenses under the District's current policy. Vice President Collett said the committee's concern is where to set the limits. Director Summerfield commented that the idea is not to abuse expenses. The Board members agreed to establish one figure as a District maximum for all travel: Travel at $750 total, lodging at $400 per night and meals at $50 per day. REPORTS, INFORMATION ITEMS AND COMMENTS 9. a. President's Report President Armstrong asked if all received the invitation from Bill Campbell's office for a meeting, which will take place on a Board meeting day. No one will be able to attend. b. Directors Reports Director Summerfield reported he will participate in a Colorado River tour. He asked about the appearance of the water meter on the property adjacent to and north of the Plumosa office. c. General Managers Report Assistant General Manager Vecchiarelli reminded the Directors that the District will participate in the Placentia Heritage Days Parade on Saturday, October 14. Yorba Linda's Fiesta Days will take place on October 28. President Armstrong and Directors Mills and Summerfield want to participate in the Honors portion of the parade, riding in a vehicle provided to them. d. General Counsel's Report General Counsel Kidman reported on two pieces of legislation. AB573 treats design professionals the same as contractors with respect to not requiring them to indemnify public agencies for an agency's negligence, except in cases of willful negligence by the design professional. -J- 2006-157 The other bill, AB 2951 is a very important bill. Connection charges were used to get revenue from property owners trying to get a connection. This was deemed an assessment by the Supreme Court, which claimed the fee was a capital facilities charge. Other public agencies are exempt unless the legislature states otherwise. The legislature did just this in San Marcos almost twenty years ago. The issue came back a year ago in a case to do with East Bay MUD. The outcome was East Bay MUD had to pay a huge refund, because it had raised rates without consent of the university at a rate higher than inflation, without negotiation. AB 2951 states water rates can be raised as long as it is non discriminatory. General Counsel Kidman wished to give an overview on this bill because of the District's negotiations with the school district for facilities. The District must show the actual true cost of what it is providing to the school district is what the school district is going to pay. COMMITTEE REPORTS 10. a. Executive-Administrative-Organizational Committee (Armstrong /Collett) Alternate: Beverage 1) Meeting scheduled for October 17, 4:00 p.m. b. Finance-Accounting Committee (Collett/Mills) Alternate: Summerfield 1) Minutes of meeting held October 9 will appear in the Board agenda on October 26. Vice President Collett reported the committee discussed a policy on future water and sewer rate hearings. Keith Khorey of Wells Capital Management presented the monthly status report on investments by phone. The committee also looked at Prop 218. Diane Cyganik gave a report on the District audit for Fiscal Year 2005-06. There was also a report on the Replenishment Assessment on Groundwater pumped to discharge for the Fiscal Year 2005-06. 2) Meeting scheduled for November 13, 4:00 p.m. Director Summerfield will attend this meeting as alternate for Director Mills. c. Personnel-Risk Management Committee (Beverage/Summerfield) Alternate: Collett 1) Minutes of meeting held October 10 will appear in the Board agenda on October 26. Director Beverage reported the committee considered adoption of the Orange County Regional Water and Wastewater Multi-Hazard Mitigation -4- 2006-158 Plan, which is being done through MWDOC. The District's share of the cost is $5,300. Recruitments are on schedule. Information was presented to the committee on the review and modifications to the District's Personnel Rules, which will be discussed at the next committee meeting. 2) Meeting scheduled for November 14, 4:00 p.m. d. Planning-Engineering-Operations Committee (Summerfield/Mills) Alternate: Armstrong 1) Minutes of meeting held October 5 were in the Agenda. Director Summerfield reported the action items discussed included the FFDCA with Shapell Industries Inc. for the Via Del Caballo and Palm Avenue Sewer Project and the Standard Plans and Drawings for Construction of Domestic Water and Sewer Facilities. Item 3, the solicitation of proposals for Engineering Services for design of the Bastanchury Road Water Transmission pipelines, was not discussed. The results of the additional investigation work for the Etchandy 2 Well were presented, and the committee recommends the District abandon any further work with the well. The property owner will allow the District to put a cover plate on the well. Standing Items included a status report on the meter replacement project, a status report on Water Production and Imports for FY 2006-07 and a status report on progress of capital improvement projects in progress. Information was presented to the committee regarding the sewer pipeline rehabilitation slip-lining technique in the Raintree Street easement. 2) Meeting scheduled November 2, 4:00 p.m. President Armstrong will attend this meeting as alternate for Director Mills. e. Public Information Committee (Mills/Collett) Alternate: Summerfield 1) Minutes of meeting held October 2 appeared in the Agenda. Director Mills reported a letter of request regarding the Mayor's 2006 State of the City Address and Luncheon was discussed and referred to the Board by the Committee. The recommendation is to partipate with half a table. Standing Items discussed included the SmarTimer Program, the MWDOC School Program and the West Coast Magazine article for the November edition. There was significant discussion about the information meeting held in the "low-pressure" neighborhood. Director Beverage requested wants to see the minutes of the Board meeting to confirm whether the Board took action. Assistant General Manager Vecchiarelli indicated he would find out if the Board provided direction to staff through an agendized report. The question of notice was discussed. -5- 2006-159 Information Items discussed included a report on the District Facilities Tour held September 16, plans for the Placentia Heritage Days Parade being held October 14 and plans for the Yorba Linda Fiesta Days Parade and Fair being held October 28. 2) Meeting scheduled for November 6, 4:00 p.m. has been changed to October 31, at 8:30 a.m. f. Building Ad Hoc Committee (Beverage/Summerfield) Alternate: Collett 1) Meeting scheduled for October 30, 4:00 p.m. g. MWDOC Ad Hoc Committee (Armstrong/Beverage) Alternate: Mills 1) Meeting scheduled for October 31, 4:00 p.m. INTERGOVERNMENTAL MEETINGS 11. a. Yorba Linda City Council, October 3 No one attended. b. OCWD Groundwater Producers, October 4 Assistant General Manager Vecchiarelli reported this was a special meeting regarding annexation issues. There was another Groundwater Producers meeting on October 11. c. OCWD Annexation meeting, October 5 This meeting was held between top management staff of Yorba Linda Water District and Orange County Water District to discuss YLWD's July 13, 2006 letter request for annexation to OCWD. OCWD presented a list of terms and conditions required in order to proceed with this request. YLWD has fundamental concerns with several of these terms. General Counsel Kidman offered his comments on how due process and an open public forum are essential to carrying out the public trust in establishing and enforcing public policies. OCWD does not appear to be operating by these guidelines with respect to their established annexation policy. Assistant General Manager Vecchiarelli stated that OCWD General Manager Virginia Grebbien committed to a letter response to YLWD's requests. d. WACO, October 6 Director Mills reported he and Mike Payne attended. There was a report from Jack Foley about what is going on at Metropolitan. The Big Horn case was the big issue. General Counsel Kidman has learned of some additional difficulty using tax payer rolls for notices. The tax collector will not give addresses for the owner, which forms a stronger argument for using the rate payer rolls. -6- 2006160 e. LAFCO Board meeting, October 11 Staff attended. Golden State Water Company was present to speak about their opposition to annexation. Yorba Linda Planning Commission, October 11 No one attended. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after October 12, 2006. Agenda is available in the District office prior to meeting. October Executive-Admin-Or anizational Committee, Oct 17, 4:00 .m. Armstrong/Collett Yorba Linda City Council, October 17, 6:30 p.m. Summerfield MWDOC Board, October 18, 8:30 a.m. Staff OCWD Board, October 18, 5:00 .m. Staff Yorba Linda Planning Commission, October 25, 6:30 p.m. Mills/ Alt. Summerfield Building Ad Hoc Committee, October 30, 4:00 .m. Bevera a/Summerfield Public Information Committee, October 31, 8:30 a.m. Mills/Collett MWDOC Ad Hoc, October 31, 4:00 p.m. ,rm, str~.nglS ~ r e November MWDOC/MWD Joint Workshop, November 1, 8:30 a.m. Staff OCWD Board, November 1, 5:00 p.m. Staff Planning-Engineering-Operations Committee, Nov 2, 4:00 p.m. Summerfield/(Mills) Armstrong WACO, November 3, 7:30 a.m. Mills Public Information Committee, November 6, 4:00 p.m. Mills/Collett Yorba Linda City Council, November 7, 6:30 .m. Collett/ Alt. Summerfield Yorba Linda Planning Commission, Nov 8, 6:30 p.m. Mills//A/t. Summerfield Board of Directors Meeting, November 9, 8:30 a.m. Finance-Accounting Committee, November 13, 4:00 p.m. Collett/(Mills) Summerfield Personnel-Risk Management Committee, Nov 14, 4:00 .m. Bevera a/Summerfield MWDOC Board, November 15, 8:30 a.m. Staff OCWD Board, November 15,5:00 .m. Staff Building Ad Hoc Committee, November 16, 4:00 p.m. Bevera a/Summerfield Executive-Admin-Or anizational Committee, Nov 20, 4:00 .m. Armstrong/Collett Board of Directors Meeting, November 21, 8:30 a.m. Yorba Linda City Council, November 21, 6:30 p.m. Summerfield Yorba Linda Planning Commission, Nov 22, 6:30 .m. Mills/ Alt. Summerfield -7- 2006-161 December WACO, December 1, 7:30 a.m. Mills Public Information Committee, December 4, 4:00 .m. Mills/Collett Personnel-Risk Management Committee, Dec 5, 4:00 p.m. Bevera a/Summerfield Yorba Linda City Council, December 5, 6:30 .m. Collett/ Alt. Summerfield MWDOC/MWD Joint Workshop, December 6, 8:30 a.m. Staff OCWD Board, December 6, 5:00 .m. Staff Planning-Engineering-Operations Committee, Dec 7, 4:00 p.m. Summerfield/Mills Finance-Accounting Committee, December 11, 4:00 p.m. Collett/Mills Board of Directors Meeting, December 12, 8:30 a.m. Yorba Linda Planning Commission, Dec 13, 6:30 p.m. Mills//A/t. Summerfield Executive-Admin-Or anizational Committee, Dec 19, 4:00 .m. Armstrong/Collett Yorba Linda City Council, December 19, 6:30 p.m. Summerfield MWDOC Board, December 20, 8:30 a.m. Staff OCWD Board, December 20, 5:00 p.m. Staff Building Ad Hoc Committee, December 21, 4:00 p.m. Bevera a/Summerfield Yorba Linda Planning Commission, December 27, 6:30 .m. Mills/ Alt. Summerfield Board of Directors Meeting, December 28, 8:30 a.m. CONFERENCES AND SEMINARS 12. 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 Vice President Collett, the Board of Directors voted 5-0 to adjourn at 12:16 p.m. to a regular meeting of the Board scheduled for Thursday, October 26, 2006, at 8:30 a.m., at 4622 Plumosa Drive, Yorba Linda 92886. General Manager -8-