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HomeMy WebLinkAbout2004-08-12 - Board of Directors Meeting Minutes2004-109 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING August 12, 2004, 8:30 A.M. 4622 Plumosa Drive, Yorba Linda - (714) 777-9593 The August 12, 2004 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President William R. Mills at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL William R. Mills Jr., President Michael J. Beverage, Vice President Paul R. Armstrong Arthur C. Korn John W. Summerfield STAFF PRESENT: Michael A. Payne, General Manager Arthur G. Kidman, District General Counsel Kenneth Vecchiarelli, Assistant GM Beverly Meza, Business Manager Michael Robinson, Assistant Administrator Amelia Cloonan, Administrative Secretary VISITORS PRESENT: Mark Schwing, Resident SPECIAL RECOGNITION AND PRESENTATIONS None CONSENT CALENDAR (Items 1 through 5) On a motion by Vice President Beverage, seconded by Director Summerfield, the Board of Directors voted 5-0 to approve the Consent Calendar. 1. Minutes of the Regular Board of Directors meeting held July 22, 2004. Recommendation: Approve minutes. 2. Minutes of the Special Board of Directors meeting held August 4, 2004. Recommendation: Approve minutes. 3. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $2,068,943.02 4. Progress Payment No. 5 and Change Order No. 2 to F.T. Ziebarth Company for construction of the Highland Booster Station Upgrades. Recommendation: Approve Progress Payment No. 5 in the amount of $208,386.00 and Change Order No. 2 in the amount of $97,798.67 to F.T. Ziebarth Company. 5. Terms and Conditions for Water and Sewer Service with Albertson's, Inc. for their project at the southeast corner of Imperial Highway and Eureka Avenue. Recommendation: Approve the Terms and Conditions for Water Service and Sewer Service as submitted. -1- 2004-110 ACTION CALENDAR 6. Consider Report of May 20, 2004 Board of Directors Goals Workshop by Charles Beesley. General Manager Payne presented the staff report. Vice President Beverage stated the Executive-Administrative-Organizational Committee added an executive summary to the report so it was easier to oversee what had been stated. On a motion by Director Armstrong, seconded by Vice President Beverage, the Board of Directors voted 5-0 to receive and file the Final Report of May 20, 2004 Board of Directors Goals Workshop. 7. Consider acceptance of the construction improvements of the Richfield Plant On- Site Sodium Hypochlorite Generation and Disinfection System. Assistant General Manager Vecchiarelli presented the report. President Mills asked for a motion for discussion. Director Armstrong moved for discussion, and Director Summerfield seconded the motion. There was discussion about Well No. 18, Well No. 19, funding sources and Well No. 15. The Board of Directors voted 5-0 to: (1) Approve Change Order No. 7 in the amount of $29,492.98. (2) Approve final progress payment No. 14 in the net amount of $26,543.68 to Pascal and Ludwig Constructors. (3) Authorize staff to file a notice of completion; (4) Authorize staff to release the labor and material bond and retention totaling $273,134.00 thirty five days after the Notice of Completion has been recorded if no liens have been filed. (5) Authorize staff to release the faithful performance bond in one year if no defects have been found. 8. Consider Emergency Replacement of the Bastanchury Road Water Transmission Pipeline. On a motion by Vice President Beverage, seconded by Director Korn, the item was opened for discussion. Director Korn stated the Finance Committee reviewed the report at its meeting on August 10. The City of Yorba Linda has a widening project in the same section of Bastanchury. At this time, Staff is proposing to stop short of Imperial Highway because of the City's request. The Board was concerned about the risk of not replacing the water main in Imperial Highway at this time. Given the past track records of cast iron pipe beginning to crack longitudinally, there is a great chance it could blow out. The line tends to fracture in the area of other repairs, and the pipeline is old. Vice President Beverage asked if the City will be held responsible for a fracture. General Counsel Kidman stated the City and the District have to have an agreement, and if the City won't agree, it is possible the District could go to court. Mr. Kidman suggested the District determine now with the contractor what the cost would be to repair the line if it breaks later. The Board requested the General Manager to express their concerns to the City Manager. -2- 2004-111 Vice President Beverage asked if it were possible to go to the City one more time to try to get agreement to do the replacement at the same time as the City's project. General Counsel Kidman said the District has the right to locate water and sewer pipelines in any street. This right exists as a matter of statute. There is really no requirement in law to get a permit. The District must act with the least disruption to traffic and make sure the street is restored to its former state of usefulness. Custom indicates the District obtain a permit so there is evidence of agreement between the two agencies. The term encroachment indicates the permit could be denied, and it cannot. But, by statute you would need six months to try work out an agreement. President Mills asked General Manager Payne to follow up again with the City of Yorba Linda. The Board of Directors voted 5-0 to ratify staff's decision to award a construction contract to Miramontes Construction in the amount of $890,900 for the Emergency Replacement of the Bastanchury Road Transmission Pipeline and a consultant's agreement with Tetra Tech in the amount of $19,990 and to reflect the concern of the Board of Directors with the possibility of an unplanned outage and public safety concerns. 9. Consider Declaration of Restrictive Covenants with Mr. and Mrs. Liviu Suciu for their property at 5604 Sugar Pine Drive. Assistant General Manager Vecchiarelli recounted the history of the sewer system on the subject property. Parcel 3, where the garage is located, has been acquired by HQ Homes. They want to reroute the sewer line through their future tract and abandon the portion of the line under the garage. This is not the action before the Board today. The Declaration of Restrictive Covenants on Parcel 2 is basically for housekeeping. On a motion by Director Summerfield, seconded by Vice President Beverage, the Board of Directors voted 4-1, with Director Armstrong voting No, to authorize the President and Secretary to execute the Declaration of Restrictive Covenants Agreement with Mr. and Mrs. Liviu Suciu, subject to approval as to form by General Counsel. 10. Consider Declaration of Restrictive Covenants with Avalon Homes and Woodbridge Homes for their Tract No. 15566. Assistant General Manager Vecchiarelli presented the report. There was discussion of water pressure issues, augmentation of pressure, engine operated pumps, fire control concerns, replacement of worn-out pumps. General Counsel Kidman stated the Declaration of Restrictive Covenants is a recorded document, and anyone buying the property will have this covenant appear in the title report. The District is never responsible for providing water to fight fires. Vice President Beverage stated when the pumps go out, there is no requirement for the homeowner to replace them. -3- 2004-112 On a motion by Director Armstrong, seconded by President Mills, the Board of Directors voted 4-1, with Vice President Beverage voting No, to authorize the President and Secretary to execute the Declaration of Restrictive Covenants Agreement with Avalon Homes and Woodbridge Homes for their Tract No. 15566. 11. Consider revisions to the District's Public Funds Investment Policy Beverly Meza, Business Manager, presented the report. Language changes were proposed to address any inconsistencies between the District's policy and California Government Code. The District's policy is already more restrictive than the California Government Code. There was a question about the language in Section 2, paragraph a, top of page 2. It was suggested the language should state the General Manager may delegate this authority "with approval of the Board of Directors". General Manager Payne stated he would prefer not to insert this language. Each December the Board of Directors appoint officers. Beverly Meza, Business Manager, is appointed Auditor of the District and handles investments. Mr. Payne believed the Board is going into too much detail. The Board of Directors on a Roll Call vote of 4-1-0, with Directors Armstrong and Summerfield, Vice President Beverage and President Mills voting Yes and Director Korn voting No, adopted Resolution No. 04-03 Setting Forth Public Funds Investment Policy and rescind Resolution No. 03-06 with the insertion of the words "with notification to the Board of Directors" at the end of the first sentence of paragraph a, Section 2, page 2. A recess was declared at 9:53 a.m. The Board of Directors reconvened with all Directors present at 10:02 a.m. INFORMATIONAL REPORTS 12. a. President's Report b. Directors Reports Director Armstrong wanted to have a legal opinion as to whether the District can approve the covenants on fire protection. Notification should go along with the title to the land. It is worthy of investigation. General Counsel Kidman said he would look into the matter. However, the District cannot go around recording items against properties without some approval. When someone requests something from the District, the District can then say "OK, but here is our condition." A better solution would be if there was some legally enforceable way to test the pumps to protect the District. c. General Managers Report. Mike Payne reported ACWA Region 5 is offering a tour of the Hetchy water system. The cost is $275.00 per person. If any Director is interested in the tour, please see him. d. General Counsel's Report. Art Kidman stated there is a special legislative report he hopes to have out today. This comes about because of the budget and new ERAF shift. -4- 2004-113 For two years, forty percent of property tax income will be lost to fund the state budget shortfall. At the end of the two years, the allocation,will be the same as it was for last year. An article stated the allocation was unfair. There was an indication they might give discretion to the counties about how to allocate the property tax the funds after the two years. The way the bills were enacted, the formula for allocation will be the same. The other item of interest is that there is an exemption from the 40% for that portion of this property tax pledged to pay indebtedness if this is the sole source of repayment funds. For the last bond issue, the District pledged property taxes and other funds. So General Counsel Kidman's understanding is the District could not claim exemption. However, when the District filed a report with the State Controller's office at the end of the year, the report had no place where the District could designate part of the property tax as sole source. The State Controller's office looks at the form and reports to the counties how much of the property tax share is going to be diverted by the 40%. General Counsel Kidman could therefore no say If the District is protected. How the State Controller's office interprets the report is what will determine if the District has protected its property taxes. The report filed should be pulled for review. COMMITTEE REPORTS 13. a. Executive-Administrative-Organizational Committee (Mills/Beverage) Summary minutes of the July 20, 2004 meeting. President Mills reported the following items were discussed: the Board Goals Workshop report, change in location of regular Board of Directors meetings, Directors Mission and Vision statements and agenda formats. Discussion of consultants' expenses was continued. b. Finance-Accounting Committee (Korn/Summerfield) Summary minutes of the July 13, 2004 meeting were included in the agenda. Items discussed were PFM Financial Management Inc., Investment Policy, City of Placentia Sewer Contract and Wells Fargo Credit Card update. c. Personnel-Risk Management Committee (Summerfield/Mills) Summary minutes of the July 12, 2004 meeting. Director Summerfield reported the committee discussed workers compensation insurance and long-term disability insurance. d. Planning-Engineering-Operations Committee (Beverage/Armstrong) Summary minutes of the July 14, 2004 meeting. Director Armstrong reported on the proposed improvements by S&S around the Fairmont Reservoir, including landscaping and remodeling were discussed. The FOG program was also discussed. e. Public Information Committee (Armstrong/Korn) Summary minutes of the July 6, and August 3, 2004 meeting. Director Armstrong reported the following items were discussed: transmission pipeline from Highland to Bastanchury, notification and public meeting, and the District participation in the Relay for Life fund raising event. -5- 2004-114 INTERGOVERNMENTAL MEETINGS 14. a. Yorba Linda Planning Commission, July 14 No one attended. b. Orange County Water District Ad Hoc Committee, July 19 (Mills/Beverage) President Mills reported that OCWD is preparing a long-term facilities plan, and an EIR for the Santa Ana River water was discussed. c. Yorba Linda City Council, July 20 (Armstrong) Director Armstrong stated there was nothing to report. d. MWDOC Ad Hoc July 26 ( Mills/Korn) President Mills reported melded rates were discussed as were funding opportunities related to Prop 50, water use agencies activities and terminating the local toilet exchange program. Mark Schwing left the meeting at 10:34 a.m. e. Yorba Linda Planning Commission, July 28 No one attended. f. ISDOC Quarterly Meeting July 29 (Mills/Payne) President Mills and General Manager Payne attended. There was presentation by Bill Gate who does demographic research for Orange County. g. Yorba Linda City Council August 3 (Summerfield) (Note:meeting was cancelled) h. MWDOC Board of Directors Meeting, August 4 No one attended. i. OCWD Board of Directors Meeting, August 4 (Staff) General Manager Payne attended and heard a presentation about the demographics in Orange County and water quality protection plan. j. Building Ad Hoc Committee July 15 and August 5, (Beverage/Summerfield) Vice President Beverage and Director Summerfield attended these meetings. The committee has been looking at department requirements for space and storage. Projections for requirements and the Board room were also discussed. BOARD OF DIRECTORS ACTIVITY CALENDAR August ISDOC Board, August 3, 7:30 a.m. Public Information Committee, August 3, 4:00 p.m. Armstrong & Korn Yorba Linda City Council, August 3, 6:30 p.m. - (Cancelled) Summerfield Building Ad Hoc Committee Meeting, 4:00 p.m. Beverage & Summerfield -6- 2004-115 WACO, August 6, 7:30 a.m. Personnel-Risk Management Committee, August 9, 4:00 p.m. Finance-Accounting Committee, August 10, 4:00 p.m. Planning-Engineering-Operations Committee, August 11, 4:00 p.m. Yorba Linda'Planning Commission, August 11, 6:30 p.m. Executive-Administrative-Organizational Com. August 17, 4:00 p.m Yorba Linda City Council, August 17, 6:30 p.m. Board of Directors Building Workshop, August 19, 8:30 a.m. Yorba Linda Planning Commission, August 25, 6:30 p.m. September WACO, September 3, 7:30 am ISDOC Board, September 7, 7:30 am Public Information Committee, September 7, 4:00 p.m. Yorba Linda City Council, September 7, 6:30 pm Planning-Engineering-Operations Committee, September 8, 4:00 p.m. Personnel-Risk Management Committee, September 13, 4:00 p.m. Finance-Accounting Committee, September 14, 4:00 p.m. Yorba Linda Planning Commission, September 15, 6:30 pm Executive-Administrative-Organizational Com. September 21, 4:00 p.m Yorba Linda City Council, September 21, 6:30 pm Yorba Linda Planning Commission, September 29, 6:30 pm ISDOC Membership, September 30,11:30 am Mills Summerfield & Mills Korn & Summerfield Beverage & Armstrong Korn Mills & Beverage Armstrong All Directors Mills Armstrong & Korn Summerfield Beverage & Armstrong Summerfield & Mills Korn & Summerfield (no) Korn Mills & Beverage Armstrong Mills Mills & Payne CONFERENCES AND SEMINARS 15. Authorize attendance of Directors and such staff members of District as approved by the General Manager to attend the following conferences and seminars. a. The 11th Annual California Urban Water Conference, August 25-27, 2004, San Diego, CA. No Director expressed an interest in attending. b. Orange County Water District/Orange County Sanitation District Water Factory 21 Demolition/Beginning Construction of the GWRS ceremony, September 20 4:00 p.m. Fountain Valley, CA. President Mills, Vice President Beverage, Director Summerfield and General Manager Payne plan to attend. c. California Special District's Association 2004 Annual Conference, September 27-30, Palm Springs, CA. No Director expressed an interest in attending. A recess was declared at 10:53 a.m. The Board of Directors reconvened at 11:02 a.m. The Board of Directors adjourned to Closed Session at 11:02 a.m. All Directors were present. Also present were: General Manager Payne, Assistant General Manager Vecchiarelli and General Counsel Kidman. -7- 2004-116 ADJOURN TO CLOSED SESSION 16. a. Conference with Legal Counsel regarding pending litigation to which the District is a party (Justification for Closed Session is Subsection (b)(1) of Section 54956.9), Superior Court of California, County of Orange, Central Justice Center, Case No. 030005867 Peters vs. City of Yorba Linda, Southern Cal'ifornia Edison; Yorba Linda Water District. b. Conference with Legal Counsel regarding anticipated litigation. Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: one case. c. Conference with Legal Counsel regarding pending litigation to which the District is a party (Justification for Closed Session is Subsection (b)(1) of Section 54956.9), Superior Court of California, County of Orange, Gutierrez vs. Yorba Linda Water District. RECONVENE IN OPEN SESSION The Board of Directors reconvened in open session at 11:55 a.m. CLOSED SESSION REPORT 16. a. On a motion by Director Armstrong, seconded by Director Summerfield, the Board of Directors voted 4-0 to authorize the President to execute a Release and Settlement Agreement with Jackie Peters, as guardian ad litem for Kevin Peters in the amount of $27,500. 16. c. General Manager Payne announced that ACWA/JPIA has approved a settlement agreement with Jorge Gutierrez Jr. in the amount of $18,000 and Chelsea Mitchell in the amount of $11,000. ADJOURNMENT On a motion by Vice President Beverage, seconded by Director Summerfield, the Board of Directors voted to adjourn at 11:55 a.m. to a Board Workshop scheduled for Thursday, August 19, 2004 at 8:30 a.m., at the District Headquarters, 4622 Plumosa Drive. Michael A.-Payne Secretary/General Manage -8-