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HomeMy WebLinkAbout2003-10-09 - Board of Directors Meeting Minutes2003-89 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS MEETING October 9, 2003 8:30 A.M. The October 9 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President John W. Summerfield at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors Present at Roll Call John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage Arthur C. Korn Staff Present: William J. Robertson, General Manager Arthur G. Kidman, District General Counsel Lee Cory, Operations Manager Stacy Bavol, Customer Service Supervisor Michael Payne, Assistant General Manager Michael Robinson, Assistant Administrator Ken Vecchiarelli, Engineering Manager Amelia Cloonan, Administrative Secretary Leon De Los Reyes, Water Quality Engineer Todd Blischke, McCormick, Kidman & Behrens Visitors present: Brett Barbre, Director, MWDOC Jenny Shih, Newport Real Estate Service Karl Klingaman, District resident Donald Nickerson, District resident Ron Mueller, District resident, civil engineer Karen & Thomas Tonelli, International Custom Enterprises SPECIAL RECOGNITION 1. Jose De LaTorre, Meter Reader II, recognition for five years service to the Yorba Linda Water District. This item was continued to the Board Meeting of October 23. 2. Kenneth Vecchiarelli, Engineering Manager introduced Leon De Los Reyes and recognized him on his promotion to Water Quality Engineer, Engineering Department. Leon De Los Reyes left the meeting at 8:33 a.m. CONSENT CALENDAR On a motion by Director Armstrong, seconded by Director Beverage, the Board of Directors voted 5-0 to approve Consent Calendar items 4, 5, 6, 10 and 11, and Consent Calendar item 7 being approved 4-0-1, with President Summerfield abstaining. 4. Authorize directors to leave the State of California prior to next meeting -1- 2003-90 5. Approve disbursements of $533,074.76. 6. Approve Terms and Conditions for Water Service with Canyon Hills Friends Church, Job No. 0324. 7. Authorize the President and Secretary to execute a Declaration of Restrictive Covenants Agreement with Mr. & Mrs. Mark Haupert. 10. Approve Progress Payment No. 4 in the net amount of $113,255.50 to Pascal and Ludwig Constructors for construction of Well No. 15 and Well No. 18 Improvements and the Richfield Plant On-Site Sodium Hypochlorite Generation and Disinfection System Projects, Job Nos. 200209, 200104 and 200207 respectively. 11. Approve Reject and Refer Claim the damage claim filed by Mark & Hedy Plummer to ACWA/JPIA. ACTION CALENDAR 3. Approve minutes of regular meeting September 25, 2003. On a motion by Director Beverage, seconded by Director Armstrong, the Board of Directors voted 5-0 to approve the minutes of regular meeting September 25, 2003 with the language in Item 7, line 2, page 2 amended to reflect the item was continued by the Board of Directors. 8. Authorize the President and Secretary to execute a Declaration of Restrictive Covenants Agreement with Mr. & Mrs. Stephen Tibbs. There was a question about what the homeowner was building in the easement. Kenneth Vecchiarelli, Engineering Manager, responded the homeowner is building a room addition, pool and slide up the easement on a slope. On a motion by Director Beverage, seconded by Vice President Mills, the Board of Directors voted 5-0 to execute a Declaration of Restrictive Covenants Agreement with Mr. & Mrs. Stephen Tibbs. 9. Authorize the President and Secretary to execute a Declaration of Restrictive Covenants Agreement with Mr. & Mrs. Karl Klingaman and Mr. and Mrs. Donald Nickerson. Kenneth Vecchiarelli, Engineering Manager, recounted the sequence of events. The homeowners want to build 61 feet of block wall parallel to their property line, which runs on top of a District sewer line. The District owns, operates and maintains the pipeline. Root cutting and pipe breaks are potential problems. If the District has to get to the pipe for repairs, the block wall will be in the way. The sewer main serves approximately 125 homes. Mr. Vecchiarelli signed a revision to the agenda report to deny the execution of the Declaration of Restrictive Covenants by the District. -2- 2003-91 Mr. Karl Klingaman, homeowner, spoke about accessibility and the additional easement he considered giving the District. Mr. Donald Nickerson, homeowner, showed the location of the manhole and spoke about the block wall and three foot gate he has on the north side of his property. Vice President Mills stated he is uncomfortable with this as precedence setting. He asked if the sewer could be relocated. William Robertson, General Manager, said the District would be glad to relocate the sewer if the homeowners would pay for this. Kenneth Vecchiarelli, Engineering Manager, stated he could not recommend putting the sewer closer to the dwellings. Director Armstrong recommended the homeowners consider using a different type of material for the wall with a different weight. He is uncomfortable because of the steep slope. Director Korn said it is a matter of economic risk. With a block wall in that location, it would obviously cost more to fix, and it is a matter of service reliability risk with over 100 homes to service. It is the responsibility of the Board to adequately assess the risks to the community. Director Beverage agreed with Director Korn. He added the line is 30 plus years old. Normal useful life is 80 years assuming no shift of dirt. As long as covenants are there, he would probably work with the homeowner. President Summerfield said he is not sure what trenching regulations are. Kenneth Vecchiarelli said over five feet you have to shore, and you have to have enough room to get the equipment in there. Dirt and rubble would need to be removed. Director Korn asked what the magnitude of costs might be under certain events and who would pay what portion of the costs. Brett Barbre left the meeting at 9:09 a.m. President Summerfield stated a sewer is a direct line with no valves and loops. If the line fails, everyone upstream has no sewer until the line is fixed. He believes the liability to the District and the homeowners upstream is tremendous. Ron Mueller, neighboring homeowner and civil engineer, asked what the difference is in a catastrophic situation between a block wall, a metal fence or any kind of fence, since you will need to come in and bulldoze the wall anyway. Director Armstrong asked if there are other easements where block walls have been built? William Robertson, General Manager, replied the District has not allowed it, and Kenneth Vecchiarelli, Engineering Manager, replied he is not aware of any. General Counsel Kidman stated the District can provide variances on a case-by-case basis, but when you grant an exception, the next person asks why they do not get the same exception. The real problem is who will be the homeowner when the problem occurs, because the District will need to sort out the issue with a new homeowner. On a motion by Vice President Mills, seconded by Director Korn, the Board of Directors voted 4-1, with Director Beverage dissenting, to deny the request for a Declaration of Restrictive Covenants Agreement with Mr. & Mrs. Karl Klingaman and Mr. and Mrs. Donald Nickerson. -3- 2003-92 A recess was called at 9:25 a.m. Karl Klingaman, Donald Nickerson, Ron Mueller, Jenny. Shih and Karen Tonelli left the meeting. The meeting reconvened at 9:38 a.m. with all Directors present. 12. Consider Annexation to the Orange County Water District. William J. Robertson, General Manager, presented the report. General Counsel Kidman commented on the process to annex. Director Armstrong said there is not a complete legal description of the District's boundary. William J. Robertson stated the County Surveyor has finished them, but they need a LAFCO number before releasing them. A draft legal description will be included with the letter. General Counsel Kidman continued to state the District will be buying equal access with those who are already in by paying an annual fee. The source of the problem is how Orange County chooses to implement post Prop 13 apportionment. Yorba Linda Water District does not contribute to the water intrusion problem at the coast. President Summerfield said there is some benefit to everyone in the District, because our customers will gain increased pumping. Vice President Mills asked if the District could get around the fees because it has a pre- existing agreement for Bryant Ranch with OCWD. It might exempt the District from the entire process of initiation fees. General Counsel Kidman will investigate. On a motion by Vice President Mills, seconded by Director Armstrong, the Board of Directors voted 5-0 to authorize the General Manager to sign a letter, with a draft map/description, initiating the annexation process to the Orange County Water District. 13. Consider Quarter Horse Reservoir Expansion. President Summerfield and Director Beverage excused themselves due to a conflict of interest and left the meeting. Kenneth Vecchiarelli, Engineering Manager, presented the report. He stated the agenda item covers steps two and three of a three-part process outlined at the last Board meeting asking for authority to execute the agreement subject to approval as to form by legal counsel. General Counsel Kidman introduced Todd Blischke, McCormick, Kidman & Behrens, who has been working on the agreement. General Counsel Kidman presented concerns with this FFDCA and the series of events that must take place including: proposed change in form of letter of credit adding a condition to provide notice of cancellation or expiration, and the construction contract situation to be brought back to the Board -on October 23. On a motion by Director Armstrong, seconded by Director Korn, the Board of Directors voted 3-0-2, with President Summerfield and Director Beverage abstaining, to: 1) Authorize the President and Secretary to execute a Facility Finance, Design and Construction Agreement (FFDCA) for the expansion of the Quarter Horse Reservoir subject to execution by Shapell Industries (Shapell) and subject to approval as to form by legal counsel; 2) Authorize the President and Secretary to execute a construction contract with Schuler Engineering Corporation for construction of the Quarter Horse Reservoir subject to review by Shapell, execution by Schuler Industries, and subject to approval by both District Legal Counsel and the General Manager. -4- 2003-93 14. Consider Amendment of the District's contract with CalPERS to provide "Fourth Level of 1959 Survivor Benefits" to employees. Michael A. Payne, Assistant General Manager, presented the report. The issue was presented and discussed at the Personnel Risk Management Committee meeting held October 7, 2003. The $2.00 a month employee cost remains the same. The District cost will go up to $4.90 per month in five years. Mr. Payne advised that another resolution is required by CalPers. The resolution will be presented to the Board in November. On a motion by Vice President Mills, seconded by Director Beverage, the Board of Directors voted 5-0 on a Roll Call vote, with President Summerfield, Vice President Mills and Directors Armstong, Beverage and Korn voting Yes, to authorize the President and Secretary to execute the CalPERS-required Agreement to pool 1959 Survivor Benefits assets and liabilities between the Board of Administration of CalPERS and Yorba Linda Water District and to adopt Resolution 03-12 indicating intent to approve an amendment to the contract between CalPERS and Yorba Linda Water District to provide Section 21574 Fourth Level of 1959 Survivor Benefits. DISCUSSION CALENDAR 15. Report on International Custom Enterprises request for change order. Kenneth Vecchiarelli, Engineering Manager, and Todd Blischke, McCormick, Kidman & Behrens, presented the report. Thomas Tonelli was present to represent the interests of International Custom Enterprises. Kenneth Vecchiarelli stated the agenda report outlined the events which transpired and is intended to give the Board information regarding the letter Mr. Tonelli presented to the Board members of August 28. The contract was managed in accordance with procedures. Mr. Tonelli, International Custom Enterprises, presented a report to the Board members. He offered a mitigated settlement for work he said was requested by the District. There were questions for Mr. Tonelli. This item was for information only. No Board action was required. The discussion concluded at 11:00 a.m. GENERAL MANAGER'S REPORT 16. General Manager's oral report and comments. a) General Counsel Kidman had nothing to report. b) ISDOC Quarterly Meeting, Thursday, October 30, 11:30 a.m. No one will attend. c) Meeting with Yorba Linda Parks & Recreation, Thursday, September 25. Kenneth Vecchiarelli, Engineering Manager, reported. There is a project in the works for improving various segments of the sewer system. The improvements are shared on a 50150 cost basis with Pulte. Information was sent to the City of Yorba Linda's Park and Recreation Department to let them know portions of the project would impact the trails and the equestrian center. Parks and Recreation wanted to hold a public hearing. 16-18 residents attended the meeting on the 25th. Kenneth Vecchiarelli said he would refer this to the PEO Committee. -5- 2003-94 d) Placentia Heritage Days, October 11. Michael Robinson, Assistant Administrator, said the District would present a float. Directors are welcome to ride on the float. e) Health Fair, Richfield Plant, October 22, 11:00 a.m. to 1:00 p.m. William Robertson, General Manager, reported flu shots will be available at the plant during the Health Fair. f) Preregistration for ACWA's 2003 Fall Conference, December 3-5, San Diego. Vice President Mills stated he will attend. Director Beverage and President Summerfield plan to attend the CRWUA (Colorado River Water Users Association) Conference, December 10-12. g) District activities. The Board agreed to change the meetings in December to the 9th and 23rd, because of holidays and conferences. In November, the second meeting will be held on Tuesday, November 25. h) The District will receive a $121,800 refund for over paid annexation fees. Chau Lee, Accounting Assistant II, deserves credit for pursuing this refund. A recess was declared at 11:14 a.m. Michael Robinson and Stacy Bavol left the meeting, The meeting reconvened at 11:21 a.m. with all Directors present. COMMITTEE REPORTS 17. Executive-Administration Committee (Summerfield/1V4ills) Summary minutes of meeting held October 1, 4:00 p.m. were included in the Agenda. Director Armstrong attended the meeting in place of Vice President Mills. The committee discussed the recruitment for the General Manager position. 18. Finance-Accounting Committee (Kom/Beverage) Summary minutes of meeting held October 1, 9:00 a.m. Meeting scheduled for October 15, 9:00 a.m. Audit, Water Rates. 19. Personnel-Risk Management Committee (Summerfield/Korn) Report of meeting held October 7, 4:00 p.m. Recruitments, Maintenance Worker I positions filled, Declaration of Restrictive Covenants, Risk Management claims, Health Fair, Employee Assistant Program. 20. Planning-Engineering-Operations Committee (Armstrong/Mills) Schedule meeting for October 14, 3:00 p.m. Vista del Verde Village 3 Water and Sewer Service, Highland Reservoir status report, Bastanchury Reservoir. 21. Public Information Committee (Beverage/Armstrong) 22. Orange County Water District Ad Hoc Committee (Summerfield/Beverage) 23. MWDOC Ad Hoc Committee (Summerfield/Korn) -6- 2003-95 INTERGOVERNMENTAL MEETINGS 24. WACO, October 3, 7:30 a.m. No one attended. 25. Yorba Linda City Council, October 7, 6:30 p.m. Vice President Mills attended. The temporary closure of Brooklyn Street was discussed. The mayor pointed out the car tax supplies 20% of the city's discretionary budget. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after October 9, 2003. Agenda is available in the District office prior to meeting. MWDOC, October 15, 9:00 a.m. OCWD, October 15, 6:00 p.m. Yorba Linda Planning Commission, October 15, 7:30 p.m. Yorba Linda City Council, October 21, 6:30 p.m. Yorba Linda Planning Commission, October 29, 7:30 p.m. ISDOC Membership, October 30,11:30 a.m. ISDOC Board, November 4, 7:30 a.m. Yorba Linda City Council, November 4, 6:30 p.m. MWDOC/MWD Jt Workshop, November 5, 8:30 a.m. OCWD, November 5, 6:00 p.m. WACO, November 7, 7:30 a.m. Yorba Linda Planning Commission, November 12, 7:30 p.m. Yorba Linda City Council, November 18, 6:30 p.m. MWDOC, November 19,9:00 a.m. OCWD, November 19, 6:00 p.m. Yorba Linda Planning Commission, November 26, 7:30 p.m. Korn Armstrong Beverage Mills Mills Beverage Korn BOARD MEMBER COMMENTS/ITEMS FOR FUTURE CONSIDERATION There were no comments. On a motion by Director Beverage, seconded by Director Armstrong, the Board of Directors voted 5-0 to go into Closed Session at 11:29 a.m. CLOSED SESSION 26. Consultation with General Counsel regarding potential litigation to which the District may be a party (Subsection (b)(1) of Section 54956.9); International Custom Enterprises. 27. Discussion of General Manager's replacement, Subsection 5 of Section 54957.1, personnel actions. 28. Discussion of pending litigation to which the District is a party, (Subsection (a) of Section 54956.9), Superior Court of California, County of Orange, Central Justice Center, Case No. 815921 Huntington Beach vs. OCWD, and Case No. 818852 Fountain Valley vs. OCWD. The Board of Directors came out of Closed Session at 12:24 p.m.. No action was taken by the Board in Closed Session. -7- 2003-96 Director Beverage presented a Sponsor Award to the Yorba Linda Water District for its participation in the 2003 Yorba Linda Relay for Life. ADJOURNMENT On a motion by Director Armstrong, seconded by Director Beverage, the Board of Directors voted 5-0 at 12:25 p.m. to adjourn to a meeting of the Board of Directors on October 15, at 8:30 a.m. to discuss the General Manager replacement. The next regular meeting of the Board is scheduled for Thursday, October 23, 2003 at 8:30 a.m., at the District Headquarters. Wfl iam obertson Secretary/General Manager -8-