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HomeMy WebLinkAbout1997-03-27 - Board of Directors Meeting MinutesPage 3615 March 27, 1997 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING MARCH 27,1997 The March 27, 1997, Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Paul R. Armstrong at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present at Roll Call: President Paul R. Armstrong Vice President Sterling L. Fox Michael J. Beverage Arthur C. Korn Carl T. Scanlin Staff present: William J. Robertson, Secretary/General Manager Arthur J. Kidman, General Counsel Charles Gray, Engineering Manager Ray Harsma, Operations Superintendent Raquel Lazo, Secretary to the General Manager Roger Lubin, Executive Assistant to General Manager Directors absent at roll call Beverly Meza, Business Manager none Michael Payne, Assistant General Manager Michael Robinson, Assistant Administrator Visitors Richard Freeman Hank Wedaa, Yorba Linda City Council Kenny Witt, MWDOC President Paul R. Armstrong called on Kenny Witt, who reported on activities at Metropolitan Water District (Met), San Diego County Water Authority, and MWDOC. CONSENT CALENDAR On a motion by Vice President Fox, seconded by Director Scanlin, the Board of Directors voted 5-0 to approve the Consent Calendar as follows: Item 1. Minutes of Regular meeting, March 13, 1997. Item 2. Authorize Directors to leave the State of California prior to next meeting. Item 3. Disburse $315,794.62 on checks 21062-63; 21083-85; 22062-63; and 22167 through 22231; a wire to ACWA-HBA for $20,183.87 dated 3/25/97; and $94,845.31 on checks 12691 through 12764 for payroll 5. Item 4. Declare Vehicle Units 75, 87, 88, 91, and 99, surplus, and authorize staff to dispose of them in accordance with adopted procedures. Page 3616 March 27, 1997 Item 5. P. R. Burke Corporation for the rehabilitation of Wells 1,5,7, and 12, Job 8954. • Progress payment 10 to P.R. Burke Corporation for $113,789.74. This is comprised of a 10 percent retention of $11,378.97deposited to Harbor Bank Escrow Account 101, and a net payment to P.R. Burke Corporation of $102,410.77. ACTION CALENDAR Item 6. Consider financial statements for the six months ended December 31, 1996. Business Manager Beverly Meza reported that the Water Fund showed a net income of $1,087,557 and the Sewer Fund a net income of $18,694 for the six months ended December 31, 1996. ID 1 showed a net income of $388,510 and ID 2 a net income $380,464 for the same period. Total assets of $94,355,441 exceed total liabilities of $22,416,936 for a fund equity of $71,938,505. On a motion by Director Beverage, seconded by Director Fox, the Board of Directors voted 5-0 to accept the financial statements for the six months ended December 31, 1996. Item 7. Consider investment portfolio report for February, 1997. Business Manager Beverly Meza reported that the average portfolio yield, excluding Improvement District No. 2 Series C General Obligation bond funds, was 5.60 percent. On a motion by Director Beverage, seconded by Director Fox, the Board of Directors voted 5-0 to accept the investment portfolio report for February, 1997. Item 8. Consider disposition of Metropolitan Water District refund. General Manager William J. Robertson reported that MWD voted to return $70 million to member agencies, of which Yorba Linda Water District's share is $412,223. Staff reviewed a number of options regarding disposition of this refund. They included: la. One time refund to each active account; lb. Reduce water rates for the next twelve months; lc. Reduce summer water rates; 2 Offset future water rate increases; 3. Return funds to MWDOC to offset future imported water purchases. The Board discussed these options, paying particular attention to Options 1 a and 1 c. This matter was also discussed with the Finance Committee on March 20. The Board asked whether refunds could be made prior to the end of the 1996-97 fiscal year. General Manager Robertson told the Board that staff would advise them at the next meeting. Neither the City of Yorba Linda's representative, Councilmember Wedaa; nor Mr. Freeman offered any comments, either for or against, any of the options under consideration. On a motion by Director Fox, seconded by Director Beverage, the Board of Directors voted 4-1 (Korn: Nay) authorizing staff to implement Option I a. Page 3617 March 27, 1997 Item 9. Consider resolution in support of the Metropolitan Water District of Orange County consolidation with Coastal Municipal Water District. General Manager William J. Robertson reported on the history leading up to consolidation discussions between MWDOC and Coastal He also indicated that staff believes the District's representation at Metropolitan Water District will be adequate with a consolidated agency, and staff recommends that the Board of Directors authorize staff to prepare a resolution in support of this consolidation. On a motion by Director Korn, seconded by Director Beverage, the Board of Directors voted 5-0, on a roll call, to authorize staff to prepare a resolution stating the Board's position, indicating that the Board was asked to participate in the process, but in view of the fact that Yorba Linda Water District is not affected by this proposed consolidation, the Board is neutral, and elects to take no position on this matter. President Armstrong declared a recess at 9:40 a.m. The meeting reconvened at 9:50 a.m. Kenny Witt left the meeting at 9:40 a.m. GENERAL MANAGER'S REPORT Item 10. General Manager's oral report and comments: a) Status report on AB556: A hearing is set for April 16, and the District is preparing a letter opposing the bill. b) District activities: General Manager Robertson reported that the City of Placentia asked the District to maintain their sewer system under a contractual relationship. General Counsel Kidman reported on prevailing wage rates; Director Beverage asked Mr. Wedaa for documentation he promised the District in support of his allegations that District rates are higher than those of Southern California Water. Mr. Wedaa stated that he "...was working on it." Director Beverage said that since Mr. Wedaa has had ample time to produce this documentation, but hasn't, a retraction was in order. In response to Mr. Beverage's request for a retraction, Mr. Wedaa, said, "Oh, no. I'm expanding it." COMMITTEE REPORTS Item 11. Legislative Ad-hoc Committee. Will meet with County Supervisor Spitzer on April 23, at 10:00 a.m. Item 12. Executive-Administration Committee. The Committee met March 21, 1997. Attending were Directors Beverage and Fox, and staff member William K. Robertson. The Committee discussed OCWD annexation, and the proposed MWDOC/Coastal Municipal Water District consolidation. Item 13. Finance-Accounting Committee. The Committee met March 20, 1997. Attending were Directors Korn and Scanlin, and staff members Robertson and Meza. The Committee discussed the Metropolitan Water District refund, the impacts of Proposition 218, and the District's potential participation in a local energy consortium. Page 3618 March 27, 1997 Item 14. Personnel-Risk Management Committee. The Committee met March 17 and March 24. Attending were Directors Fox and Beverage, and staff members Robertson and Payne. They discussed insurance claims, and upcoming meet and confer activities. Executive Assistant to the General Manager Roger Lubin joined the meeting for part of the discussion on meet and confer. Item 15. Planning-Engineering-Operations Committee. Item 16. Public Information Committee. The Committee met March 21, 1997. Attending were Directors Beverage and Armstrong, staff members Robertson and Robinson, and Sherri Johnson, of Laer Pearce and Associates. The Committee discussed: Creation of a District web site; Water bill formats; Community pipeline meetings; District identity; Customer Survey; and Water conservation brochures. INTERGOVERNMENTAL MEETINGS Item 17. Yorba Linda City Council meeting, March 18 (Korn): Nothing of concern to the District transpired. Item 18. OCWD, March 19 (Scanlin): Discussed ACWA dues, and that no COLA would be forthcoming for employees, however, two percent would be put into a merit pool. Item 19. MWDOC, March 19 (Fox): Reported on the proposed MWDOC/Coastal consolidation, which will be filed with LAFCO in May. Item 20. LAFCO Advisory, March 20 (Fox): Capistrano Valley plans to become a department of the City of San Juan Capistrano, rather than a dependent special district. Item 21. Yorba Linda Planning Commission, March 26 (Scanlin): Nothing of concern to the District transpired. BOARD MEMBER COMMENTSATEMS FOR FUTURE CONSIDERATION Scanlin: Asked about use of reservoir tops for recreational use. Armstrong: Reminded everyone about the ceremonial demolition of Building Eight, at the Richfield Plant, at 3:00 today. Mr. Wedaa and Mr. Freeman left the meeting at 10:20 a.m. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board of Directors reviewed the Activity Calendar and made assignment changes. Page 3619 March 27, 1997 CLOSED SESSION Item 22. Pending litigation to which the District is a party, (Subsection (a) of Section 54956.9), County of Orange, Chapter 9, Case No SA 94-22272-JR; Orange County Investment Pools, Chapter 9, Case No. SA 94-22273-JR before the US Bankruptcy Court, the Central District of California. The Board of Directors took no action on this item. Item 23. Discussion of personnel matters pursuant to Section 54957.6 of the California Government Code, unrepresented employee: General Manager. The Board of Directors took no action on this item. ADJOURNMENT On a motion by Vice-president Fox, seconded by Director Beverage, the Board of Directors voted 5-0, at 11:35 a.m., to adjourn to Thursday, April 10, 1997 at 8:30 a.m. in the District Boardroom. i liam J. Robertson Secretary/General Manager