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HomeMy WebLinkAbout2004-12-09 - Board of Directors Meeting Minutes2004-169 Minutes of the YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING December 9, 2004, 8:30 A.M. The December 9, 2004 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. Beverage, Vice President Paul R. Armstrong Ric Collett John W. Summerfield VISITORS PRESENT Mark Schwing, Resident 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 Lee Cory, Operations Manager Amelia Cloonan, Administrative Secretary Dennis McGlasson, Maint. Leadworker SPECIAL RECOGNITION AND PRESENTATIONS Lee Cory introduced Dennis McGlasson, Maintenance Leadworker, and recognized and thanked him for twenty years service to the District. President Mills presented him with a twenty year pin. ANNUAL REORGANIZATION OF THE BOARD OF DIRECTORS 1. Seat Directors Michael J. Beverage and Richard P. Collett. Directors Beverage and Collett were congratulated by General Manager Payne and President Mills and were officially seated as Directors. 2. Reorganization of the Board of Directors to select President and Vice President and Corporate Officers. General Manager Payne presented the report. a) Nominate and elect a President and Vice President. b) Appoint the following Corporate Officers: Secretary: Michael A. Payne, General Manager Assistant Secretary: Kenneth Vecchiarelli, Assistant General Manager Auditor: Beverly Meza, Business Manager President Mills nominated Director Beverage as President and Director Armstrong as Vice President and moved approval of the appointment of Michael A. Payne as Secretary, Kenneth Vecchiarelli as Assistant Secretary and Beverly Meza as Auditor. Director Collett seconded the nominations. The Board of Directors voted 5-0 to approve the nominations and appointments. -1- 2004-170 Michael J. Beverage was seated as President. 3. Annual Review and Consideration of the Board of Directors Compensation. The committee recommendation was to leave the Board of Directors compensation as is. On a motion by Vice President Armstrong, seconded by Director Mills, the Board of Directors voted 5-0 to accept the recommendation of the Executive-Administration- Organizational Committee and leave the Board of Directors compensation as is. Director Collett asked that Item 4 be removed from the Consent Calendar as he was not officially a Director when the meeting of November 23, 2004 was held. CONSENT CALENDAR (Items 4 through 8) On a motion by Vice President Armstrong, seconded by Director Summerfield, the Board of Directors voted 5-0 to approve Consent Calendar Items 5, 6, 7 and 8. 5. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $579,377.08. 6. Highland Booster Station Upgrades - Job No. 200103. Recommendation: Approve Change Order No. 4 and Progress Payment No. 9 to F.T. Ziebarth Company for construction of the Highland Booster Station Upgrades, and approve an addendum in the amount of $43,500 to RBF Consultants for Engineering, Construction Management and Inspection of the Highland Booster Station Upgrades, Job No. 200103. 7. Association of California Water Agencies - 2005 annual membership. Recommendation: Approve the Association of California Water Agencies 2005 annual membership dues for the amount of $11,500. 8. California Special District Association - 2005 annual membership. Recommendation: Approve the payment of California Special District Association 2005 annual membership dues for the amount of $2,672. ACTION CALENDAR 4. Minutes of the Adjourned Regular Board of Directors meeting held November 23, 2004. On a motion by Director Mills, seconded by Director Summerfield, the Board of Directors voted 4-0-1, with Director Collett abstaining, to approve the minutes of the Board of Directors meeting held November 23, 2004. -2- 2004-171 9. Loss of Ad Valorem Property Tax Revenues and Increased Costs from Orange County Water District. General Manager Payne presented the report. A question was asked about when the property tax loss would be seen. This loss has already been seen in the taxes being paid right now. Only the costs coming from the state and OCWD will be passed through to the customers. If the money is returned, it will be given back to the customers in the form of a reduction in their water bills. There were questions asked why the increase for the OCWD should go into effect now, about how to notify the customers of the increase and how to explain the reasons for the increase, whether as a message on the bill, in a letter or in the District's newsletter. On a motion by Director Mills, seconded by Vice President Armstrong, the Board of Directors on a Roll Call vote, with Directors Collett, Mills and Summerfield and Vice President Armstrong and President Beverage voting Yes, adopted Resolution No. 04-07 Adjusting the Water Rates Effective January 1, 2005 and July 1, 2005 and rescinding Resolution No. 03-17. 10. Amending the names of individuals authorized to sign District checks. Beverly Meza, Business Manager, presented the report. On a motion by Director Mills, seconded by Director Summerfield, the Board of Directors on a Roll Call Vote, with Directors Collett, Mills and Summerfield and Vice President Armstrong and President Beverage voting Yes, adopted Resolution No. 04-08 authorizing individuals to sign District checks and reaffirming the policy for the use of an automated check signing machine and rescinding Resolution 03- 18. Director Summerfield left the meeting at 9:23 a.m. 11. Investment Report for Quarter Ending September 30, 2004. Beverly Meza, Business Manager, presented the report. There was a question about interest rates on CDs. On a motion by Director Mills, seconded by Vice President Armstrong, the Board of Directors voted 4-0-1, with Director Summerfield absent, to receive and file the Investment report for quarter ending September 30, 2004. Director Summerfield returned to the meeting at 9:27 a.m. 12. Financial Statements for three months of fiscal year 2004-2005 ending September 30, 2004. Beverly Meza, Business Manager, presented the report. On a motion by Director Mills, seconded by Director Collett, the Board of Directors voted 5-0 to receive and file the Financial Statements for three months of fiscal year 2004-2005 ending September 30,.2004. Amanda Beck, Reporter for the Yorba Linda Star, entered the meeting at 9:28 a.m. -3- 2004-172 13. Authorization to solicit proposals from Human Resource consultants for revising the Districts job descriptions. General Manager Payne presented the report. The results of the revisions to job descriptions will be presented at meet and confer as part of the process if any job descriptions are changed. This item came before the Personnel-Risk Management Committee whose members approved staff's recommendation. There was a questions about why the General Manager's job description is excluded from the process. President Beverage responded that the General Manager is hired and fired by the Board of Directors. The District will use a consultant rather than perform this in house, because the District does not have staff with the time or expertise to perform this function, and a consultant brings in an outside perspective. On a motion by Director Armstrong, seconded by Director Summerfield, the Board of Directors voted 5-0 to authorize the General Manager to solicit proposals from human resources consultants to revise and develop job descriptions for the District's job classifications, excluding the General Manager's position. A recess was declared at 9:37 a.m. The Board of Directors reconvened at 9:45 a.m. with all Directors present. Don Gillis and Jack Panichapan of Gillis and Associates and Bill Moorhead and Stacy Bavol entered the meeting. DISCUSSION CALENDAR 14. Concept Plan for New Administration Building. General Manager Payne introduced Don Gillis and Jack Panichapan of Gillis and Associates. Don Gillis distributed handouts to the Board members and made a presentation on updates to the building plans. The size of the building, the orientation on the site relative to existing buildings, parking, entrances, layout, solid walled offices and cubicles were all noted. The HVAC system has not yet been finalized. This item was presented for review and information only. Stacy Bavol, Bill Moorhead, Don Gills and Jack Panichapan left the meeting at 10:30 a.m. REPORTS, INFORMATION ITEMS AND COMMENTS 15. a. President's Report. There was no report. President Beverage will be contacting Board members between now and the next Board meeting to go over committee assignments in order to be able to come back at the next meeting with the assignments. b. Directors Reports. Director Summerfield asked for an update on the contractor referred to at the last Board meeting who was behind in the work he was doing for the District. Assistant General Manager Vecchiarelli reported on the contractor for the Central Yorba Linda Pipeline Project. There are issues with the permits and alignment, which occurred after the contract was issued. The contractor and District met with the City of Yorba Linda to review some alternatives for conditions the city set. The city had public safety issues which caused additional costs. and delays for the contractor. Delivery of the pipe is also -4- 2004-173 delayed. The contractor has asked the District to consider suspending the bond until April, so he can bid new jobs. If we cannot come to an agreement with the contractor, we may terminate for convenience. The contractor would be building the job if he had the permit and the pipe. Staff will come to the Board when the details are worked out. General Counsel Kidman said the District made a decision where they would require the contractor to pull the permit, with meeting insurance requirements being a consideration. The city adopted a very strict set of public safety requirements, which reduces the number of hours worked in a day because of having to move the equipment off site. The contractor has encountered different requirements than anticipated by the District, which means the District may need to pay for those requirements imposed by the city. The District has a statutory right to install pipe in a city street. Vice President Armstrong requested the minutes reflect there were two different vote tallies for the election reflected in Item 1. The Orange County Registrar of Voters certified results is the correct tally. c. General Managers Report. General Manager Payne attended the ACWA Conference. There was talk about the state budget and how to protect agency reserves. Barry Brokaw of Sacramento Advocates will attend the first Board meeting in January to give an update on what is going on in Sacramento. There was also talk at ACWA about auditors, and a good rule of thumb expressed by many is that auditors be retained for five years. General Manager Payne wished President Beverage a happy birthday. A copy of the survey conducted by the City of Yorba Linda has been requested. d. General Counsel's Report. General Counsel Kidman reported on a session he attended at ACWA relative to the state budget crisis. The panel included Steve Hall, Executive Director of ACWA, Kathryn Smith, Executive Director of CSDA and Virginia Grebbien, General Manager of OCWD. There is a strong defensiveness going on at ACWA about why the property tax hit was not stopped. There was a deal made last spring, which was supposed to stop the loss at 40%, but it was left up to the counties to allocate losses. When it came to special districts, the legislature went forward with implementing the deal made with the governor last spring, but by the time the bill passed, it was a different deal. In a lot of cases, the loss amounted to 100% of the 2002 total. CSDA was primary spokesperson for water and sewer districts, and the sentiment is they were largely unable to impact the outcome. General Counsel Kidman attended another session at ACWA where the head of Cal LAFCO spoke and reflected one of the precepts of LAFCO is to control urban sprawl. Growth opponents tie water to sprawl. -5- 2004-174 COMMITTEE REPORTS 16. a. Executive-Administrative-Organizational Committee (Armstrong/Beverage) Meeting scheduled for December 21, 4:00 p.m. b. Finance-Accounting Committee (no director assigned/Summerfield) The meeting scheduled for December 14 will not be held. c. Personnel-Risk Management Committee (Summerfield/Mills) The meeting scheduled for December 13 will not be held. d. Planning-Engineering-Operations Committee (Beverage/Armstrong) Minutes of the meeting held December 8, 2004 will appear in the December 23, 2004 Agenda. President Beverage reported vehicles and equipment purchase program was discussed. The question of purchasing fuel efficient vehicles, even if not of U.S. manufacture, was discussed. The committee directed staff to consider vehicles of foreign manufacture also. The FOG issue was discussed as an information item including fee schedules and city licenses. e. Public Information Committee (Armstrong/no director assigned) The meeting scheduled for December 7, 2004 was cancelled. f. Building Ad Hoc Committee (Beverage/Summerfield) No meeting was scheduled. g. MWDOC Ad Hoc Committee (Mills/Korn) The minutes of the meeting held November 22 were not included in the agenda. Meeting scheduled for January 24, 4:00 p.m. h. OCWD Ad Hoc Committee (Mills/Beverage) Meeting scheduled for January 17, 4:00 p.m. INTERGOVERNMENTAL MEETINGS 17. a. Yorba Linda City Council, December 7. Director Summerfield attended. Councilwoman Kerri Wilson was elected mayor and Mike Duval was elected mayor pro tem. The City Council meeting scheduled for December 21 was cancelled. Bids for the 72" stormdrain pipeline extension in Plumosa Drive were authorized. A city newsletter was approved. The city passed a resolution supporting Anaheim's effort to keep the name of the Anaheim Angels. A suit filed with the city by a woman who went over a manhole cover damaging her car was not discussed. A compromise was reached on the appeal of the design review for Toll Bros. property. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after December 9, 2004. Agenda is available in the District office prior to meeting. -6- 2004-175 December WACO, December 10, 7:30 am Mills Personnel-Risk Management Committee, December 13, 4:00 p.m. Summerfield/Mills Finance-Accounting Committee, December 14, 4:00 p.m. Need to fill/Summerfiel, 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 Executive-Administrative-Organizational Com. December 21, 4:00 p.m. New President/VP ISDOC Membership, December 30,11:30 a.m. The Board of Directors went into Closed Session at 11:22 a.m. All Directors were present. Also present were General Manager Payne, Assistant General Manager Vecchiarelli and General Counsel Kidman. ADJOURN TO CLOSED SESSION 18. 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. Discussion of pending 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 11:51 a.m. CLOSED SESSION REPORT There was no Closed Session report. ADJOURNMENT At 11:52 a.m., on a motion by Director Mills, seconded by Director Collett, the Board of Directors voted 5-0 to adjourn to a regular meeting of the Board scheduled for Thursday, December 23, 2004 at 8:30 a.m., at the District Headquarters, 4622 Plumosa Drive. C/111__ Michael A. Payne Secretary/General Manager -7- 2004-176