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HomeMy WebLinkAbout2004-11-23 - Board of Directors Meeting Minutes2004-161 Miinutes of the YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS ADJOURNED REGULAR MEETING November 23, 2004,8:30 A.M. The November 23, 2004 adjourned regular meeting of the Yorba Linda Water District Board of Directors was called to order by President William 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. Beveraae, Vice President Paul R- Armstrong Arthur C. Korn 1^kn W. Q~.1IrnrnthrF;^1 I yVl It l Y V V1111111+1 i1 il/ V (SITU"U a PtCIt EN T Brett Barbre, ivWWDOC President Roger Yoh, OCWD Director-elect Ric Collett, YLWD Board Member elect Heather Baez, Supervisor Campbell's office STAFF PRESENT Michael Payne, General Manager Arthur G. Kidman. District General Counsel Beverly Meza; Business Manager Michael Robinson, Assistant Administrator LeV Cory, OperatlollJ Manager A Alin f li+i a" AA ;n n#/~filie ~.ensn~.ns Tl117r 71Q V7VVi7Ci11, rRll]Ml 101]G{LIYG VGL,7 ~j1G7r Stacy Bavoi, Customer Service Supervisor Carlos Coiiazo, Maintenance Worker li Charles Gray, Senior Project Engineer Jeff McDonald, Maintenance Leadworker INTRODUCTION OF VISITORS AND PUBLIC COMMENTS President Mills introduced Roger Yoh, OCWD Director-elect, Division 3 and congratulated him on his election. SPECIAL RECOGNITION Business Manager Beveriy Meza introduced Iced Stacy Bavol, Customer Service Si perbicnr who was rr-nnnni7erl fnr fiarp vparc cervinp to thtz [nictrint General Manager Payne introd-used Charles Gray, Senior Project Engineer, who was recognized for fifteen years service to the District. Operations Manager Lee Cory introduced Jeff McDonald, Maintenance Leadworker, who was recognized for twenty years service to the District. Operations Manager Lee Cory introduced Carlos Collazo, Maintenance Worker -14, who was recognized for five years service to the District. President William Mills presented a proclamation to Director Arthur C. Korn recognizing him for his years of dedication and service. President Mills also presented a commendation from the City of Yorba Linda City Council. Heather Baez, Supervisor Tom Campbell's office, presented a proclamation to Director Kom. Brett -Barbre, MWDOC President, presented a proclamation from Municipal Water District of Orange County. General Manager Payne presented an inscribed, faceted glass design recognizing Director Korn for his years of service to the District- 2004-162 A recess was declared at 8:49 a.m. Heather Baez, Roger Yoh, Brett Barbre, Stacy Bavol, Carlos Collazo and Jeff McDonald left the meeting. The meeting reconvened at 9:02 a.m. with all members of the Board of Directors present. CONSENT CALENDAR (Items 1 through 3) A request was made by Vice President Beverage to remove item 3 from the Consent Calendar due to a conflict of interest involving a source of income to him. On a motion by Director Summerfield, seconded by Director Armstrong, the Board of Directors voted 5-0 to approve Consent Calendar items 1 and 2. Minutes of the Adjourned Regular Board of Directors meeting held November 9, 2004. Recommendation: Approve minutes. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $1,211,046.19. ACTION CALENDAR 3. Quarter Horse Reservoir Expansion On a motion by Director Armstrong, seconded by Director Summerfield, the Board of Directors voted 4-0-1, with Vice Beverage abstaining to approve Progress Payment No. 12 in the amount of $120,663.81 to Schuler Engineering Corporation for construction of the Quarter Horse Reservoir Expansion, Job No. 200316. 4. Financial Statements for two months of fiscal year 2004-2005 ending August 31, 2004. Beverly Meza presented the report. On a motion by Vice President Beverage, seconded by Director Armstrong, the Board of Directors voted 5-0 to receive and file the financial statements for two months of fiscal year 2004-2005 ending August 31, 2004. 5. Appropriations Limit for Fiscal Year 2004-05. Beverly Meza, Business Manager, presented the report. On a motion by Director Korn, seconded by Director Armstrong, the Board of Directors on a Roll Call vote, with President Mills, Vice President Beverage, and Directors Armstrong, Korn and Summerfield voting Yes, adopted Resolution 04-06 adopting the District's appropriations limit for fiscal year 2004-2005. -2- 2004-163 6. Consultant. Agreement with Moreland & Associates. Beverly Meza, Business Manager, presented the report. A questions was asked about the advantages and disadvantages of hiring new auditors. A new pair of eyes is a plus. Retraining the new auditors is a minus. A comment was made that the selection of the new auditing firm is of critical importance. On a motion by Director Korn, seconded by Director Armstrong, the Board of Directors voted 5-0 to approve an agreement with Moreland & Associates for Auditing Services for the period of July 1, 2004 thru June 30, 2005. 7. . Siesta Lane Sewer Improvements. Chuck Gray, Senior Project Engineer, presented the report. On a motion by Vice President Beverage, seconded by Director Summerfield, the Board of Directors voted 5-0 to approve Change Order No. 1 and the Final Progress Payment in the net amount of $48,264.30, to Vasilj, Inc.; authorize staff to file a Notice of Completion; release the Labor and Material Bond and payment of the 10 percent retention, 35 days after the Notice of Completion has been recorded if no lines have been filed; and release the Faithful Performance Bond in one year if no defects have been found for the Siesta Lane Sewer Improvements, Job No. 200317. DISCUSSION CALENDAR 8. Water rate projections for 2005 and the loss of ad valorem property tax revenues. General Manager Payne presented a handout to the members of the Board and gave an outline of the background of this item. The Board of Directors reviewed the proposed water rate. projections and discussed the impact of the loss of $793,014 in ad valorem property tax from the State of California in fiscal years 2004-05 and 2005-06. The discussion also included the notice of intent approved by the Orange County Water District to pass through their loss of ad valorem property tax revenues in the amount of $7.5 million dollars to the groundwater producers in fiscal years 2004-05 and 2005-06. There was discussion of the terms "surcharge" and "pass through". Reserves, annexations, property tax loss, sinking fund, and the YLWD Waterlines messages were also discussed. This item will be brought back to the Board on the agenda for December 9 as an Action Item. REPORTS, INFORMATION ITEMS AND COMMENTS 9. a. President's Report Director Armstrong moved and Director Summerfield seconded, with the Board of Directors voting 5-0 to authorize General Manager Payne to represent the District at JPIA's Fall Conference. -3- 2004-164 b. Directors Reports Director Summerfield commented that Director Art Korn has taught him a lot, and he appreciated the help. Director Korn responded that Board members and staff should feel free to call him so he can give background information when needed. c. General Manager's Report. General Manager Payne handed out a copy of the latest version of the administration building plans on Mira Loma Avenue. The building is now less than 20,000 sq. ft. He plans to bring this item back on the agenda of December 9 as a discussion item. d. General Counsel's Report General Counsel Kidman reported there had been a decision by the California Supreme Court in a case, Stockett v. ACWA. A $4.5 million judgment against JPIA was reinstated. COMMITTEE REPORTS 10. a. Executive-Administrative-Organizational Committee (Mills/Beverage) The minutes of the meeting held November 12 were in the agenda. President Mills reported the committee discussed the reorganization of the Board, committee assignments, and an increase in Board compensation, which the committee did not recommend. Meeting scheduled for December 21, 4:00 p.m. b. Finance-Accounting Committee (Korn/Summerfield) The minutes of the meeting held November 16 were in the agenda. Director Korn reported both items discussed at the meeting, auditors and water rates, were discussed at today's meeting. Meeting scheduled for December 14, 4:00 p.m. c. Personnel-Risk Management Committee (Summerfield/Mills) The minutes of the meeting held November 11 were in the agenda. Director Summerfield reported the committee discussed a human resources consultant to update job descriptions and the status of recruitments. Meeting scheduled for December 13, 4:00 p.m. -4- 2004-165 d. Planning-Engineering-Operations Committee (Beverage/Armstrong) The minutes of the meeting held November 10 were in the agenda. Vice President Beverage reported that he removed himself from discussion of item 4, Land Appraisal for Fairmont Reservoir Parcel. The committee looked at the exchange of property and appraisals with respect to item 3, the Bastanchury Property Exchange and Lennar Development Phasing Agreements. Staff will meet with Lennar. Meeting scheduled for December 8, 2004. e. Public Information Committee (Armstrong/Korn) The minutes of the meeting held November 12 were in the agenda. Director Armstrong reported the committee discussed future issues of the newsletter and Waterlines and what their composition should be. There was discussion about what will transpire if the upcoming year is dry, and General Manager Payne reported on the District's participation in Heritage and Fiesta Days. Meeting scheduled for December 7, 4:00 p.m. Building Ad Hoc Committee (Beverage/Summerfield) The minutes of the meeting held November 18 were in the agenda. Vice President Beverage reported 5,000 sq.ft. were trimmed from the administration building. The plan distributed at the Board meeting is the result. Potential future expansion is indicated. The exterior must still be determined. A question about the mechanical plant was posed. General Manager Payne asked this question be brought up at the next Board meeting. g. MWDOC Ad Hoc Committee (Mills/Korn) Minutes of meeting held November 22 will appear in the Board agenda for December 9, 2004. President Mills reported the committee discussed melded rate implementation, the search process for a new CEO at Met and board reorganization, two tier minimization program and Prop 50 funding. Meeting scheduled for January 24, 4:00 p.m. h. OCWD Ad Hoc Committee (Mills/Beverage) The minutes of the meeting held November 15 were in the agenda. Vice President Beverage reported. Item 1, MTBE Plume, was continued to the next committee meeting. The information for Item 2, Richfield Plant Modeling of Groundwater basin, will be coming to the next committee meeting. Basin Production Percentage Projections were discussed. OCWD rejected the change in the MOU language. OCWD General Manager Grebbien stated OCWD never accepts changes in language. Meeting scheduled for January 17, 4:00 p.m. -5- 2004-166 INTERGOVERNMENTAL MEETINGS 11. a. Yorba Linda Planning Commission, November 10. No one attended. b. Yorba Linda City Council, November 16. Director Armstrong attended. The city paid for an opinion survey. There were 60 questions asked of 400 residents. Some of the items would be of interest to the District, and he suggests the District get a copy of the report. The item of highest interest was a high school. Most residents were unaware of the downtown redevelopment. The city fathers agreed to the potential of the YMCA using a portion of the East Side Community Park for building a YMCA building. c. OCWD Board, November 17, 5:00 p.m. (Staff) General Manager Payne attended. The MOU was on the agenda. It was unanimously not approved because of the language in it. This item will be covered in closed session. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after November 23, 2004. Agenda is available in the District office prior to meeting. December MWDOC/Met Jt. Workshop, December 1, 8:30 a.m. Staff OCWD Board, December 1, 5:00 p.m. WACO, December 2, 7:30 am ISDOC Board, December 7, 7:30 a.m. Public Information Committee, December 7, 4:00 p.m. TBD Yorba Linda City Council, December 7, 6:30 p.m. Summerfield Planning-Engineering-Operations, December 8, 4:00 p.m. TBD Personnel-Risk Management Committee, December 13, 4:00 p.m. TBD Finance-Accounting Committee, December 14, 4:00 p.m. TBD MWDOC Board, December 15, 8:30 a.m. Staff OCWD Board, December 15, 5:00 p.m. Staff Yorba Linda Planning Commission, December 15, 6:30 pm TBD Executive-Administrative-Organizational Com. December 21, 4:00 p.m. TBD Yorba Linda City Council, December 21, 6:30 p.m. Armstrong ISDOC Membership, December 30,11:30 a.m. A recess was called at 10:39 a.m. At 10:45 a.m., the Board of Directors went into Closed Session. All Directors were present. Also present were General Manager Payne and General Counsel Kidman. -6- 2004-167 ADJOURN TO CLOSED SESSION 12. The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 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. b. Conference with Legal Counsel regarding existing litigation to which the District is a party (Justification for Closed Session is Subsection (a) of Section 54956.9), Superior Court of California, County of Orange, Central Justice Center, Case No. 11919 Gateway Pacific Contractors, Inc. c. Conference with Legal Counsel regarding pending litigation. Justification for Closed Session is Government Code Section 54956.9 - one case. RECONVENE IN OPEN SESSION The Board of Directors reconvened in Open Session at 11:15 a.m. CLOSED SESSION REPORT There was no Closed Session report. ADJOURNMENT At 11:16 a.m., on a motion by Director Korn, seconded Board of Directors voted 5-0 to adjourn to an adjourned scheduled for Thursday, December 9, 2004 at 8:30 a.m., 4622 Plumosa Drive. L-:: --A C - - D"-~ Michael A. Payne Secretary/General Manager by Director Armstrong, the regular meeting of the Board at the District Headquarters, -7- 2004-168