HomeMy WebLinkAbout1996-04-11 - Board of Directors Meeting MinutesPage 3497
April 11, 1996
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
APRIL 11, 1996
The April 11, 1996 Regular Meeting of the Yorba Linda Water District Board of Directors was
called to order by President Michael J. Beverage at 8:30 a.m. The meeting was held at District
Headquarters, 4622 Plumosa Drive, Yorba Linda.
Directors present at Roll Call:
President Michael J. Beverage
Vice President Paul R. Armstrong
Sterling L. Fox
Arthur C. Korn
Carl T. Scanlin
Directors absent at roll call
none
Staff present:
William J. Robertson, Secretary/General Manager
Janet Morningstar, General Counsel
Charles Gray, Engineering Manager
Roger Lubin, Exec. Asst. to the General Manager
Beverly Meza, Business Manager
Michael Payne, Assistant General Manager
Ken Vecchiarelli, Assistant Engineering Manager
Jill Weber, Secretary
Visitors
Steve Tedesco, ASL Consulting Engineers
James Reid, Attorney for JW Contracting
Shellie A. Camarata, Court Reporter
Pat Burke, PR Burke Corporation
Tony Anstott, JW Contracting
Jim LaPorte, Independent Well Drilling
George Bayse, Shell Western E & P, Inc.
Sam Couch, Shell Western E & P, Inc.
CONSENT CALENDAR
On a motion by Director Fox, seconded by Director Armstrong, the Board of Directors voted 5-0
to approve the Consent Calendar as follows:
Item 1. Minutes of regular meeting March 28, 1996, as corrected.
Item 2. Authorization for the Directors to leave the State of California prior to next meeting.
Item 3. Disbursements of $81,290.99 on checks 19573 and 74, and 19953 through 20016; a
wire to MWDOC for $130,657.60 dated 04/10/969 and $85,394.12 on checks 9966 through 10041
for Payroll No. 6.
Item 4. Release guarantee bonds of $59,174 for construction of water facilities installed by
developers identified in this report.
Item 5. Reject the damage claim for $213.83 filed by Rick Kightlinger.
Item 6. Reject the damage claim for $300 filed by Dori Feign.
The Board of Directors, on advice of counsel and based on existing facts and circumstances
including a letter from James Reid, Attorney at Law for JW Contracting, determined that there is
significant exposure to litigation. On a motion by Director Scanlin, seconded by Director Fox, the
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April 11, 1996
Board of Directors voted 5-0 to add Item 31 to the agenda under closed session.
CLOSED SESSION
On a motion by Director Fox, seconded by Director Scanlin, the Board of Directors voted 5-0 to
enter closed session.
Item 31. The Board of Directors entered closed session at 8:34 a.m.to discuss pending litigation
regarding JW Contracting, under section 54956.9 (b) of the Government Code.
The Board exited closed session at 9:11 a.m.
ACTION CALENDAR
At the direction of the Chair, the Board considered Item 8 next.
Item 8. Consideration of construction service agreements for rehabilitation of Wells 1,5,7, and
12. Mr. James Reid, attorney representing JW Contracting, was given a copy of the agenda report
for this item. Engineering Manager Chuck Gray reported that the agenda report on this matter
adequately addressed the issues and he had nothing further to add.
Mr. Reid addressed the Board, stating that he believed JW Contracting's bid was responsive, and
urged the Board to maintain the integrity of the bidding process by accepting JW Contracting's bid.
Director Armstrong requested that the Secretary/General Manager read the staff recommendation
aloud. Mr. Robertson read the recommendations. Director Scanlin asked for clarification of the
dollar amount in Recommendation No. 4. Mr. Gray responded that the amount should read
$87,700, rather than $87,000 as printed in the agenda.
On a motion by Director Armstrong seconded by Director Fox, the Board of Directors voted 5-0 to
take the following actions regarding the rehabilitation of Wells 1,5,7, and 12:
1. Declare JW Contracting Corporation's bid non-responsive and return their security bond.
2. Award a construction contract to PR Burke Corporation for $2,862,433 and authorize the
President and Secretary to execute the contract subject to approval as to form by legal counsel.
3. Return bid security bonds to other contractors following execution of the contract with PR
Burke Corporation.
4. Approve an amendment to the consultant contract with ASL Consulting Engineers for $87,700,
for additional construction management, staking and inspection services.
5. Authorize the president and Secretary to execute a consultant agreement with Geo-
Environmental, Inc., of $9,987, for geotechnical support services and concrete testing.
6. Approve the construction budget of $3,544,563 with costs split according to the percentages
identified in the agenda report.
Mr. Reid, Mr. Tedesco, Mr. Burke, Mr. Anstott, Mr. LaPorte, and Ms. Camarata left the meeting at
the conclusion of this item.
Item 9. Consideration of design and construction of a new District warehouse at the Richfield
Plant. Engineering Manager Chuck Gray reported that ten bids were received for the design and
construction of a new District warehouse. Although a protest was registered against Shook
Building Systems, Inc., the low bidder, legal counsel saw no reason to disqualify them. Staff also
received two proposals for review of construction drawings, management and inspection services.
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April 11, 1996
On a motion by Director Armstrong, seconded by Director Scanlin, the Board of Directors voted 5-
0 to take the following actions regarding the design and construction of the new District
warehouse.
1. Approve the construction budget of $208,897 with costs split according to the percentages
identified in this agenda report.
2. Award a warehouse construction contract to Shook Building Systems, Inc. for $167,950, and
authorize the President and Secretary to execute the contract, subject to review as to form by
legal counsel.
3. Return the security bonds to the other contractors following execution of the contract with
Shook Building Systems, Inc.
4. Authorize the General Manager to execute a consultant agreement with ASL Consulting
Engineers for $8,700 for design review, construction management, and inspection services.
President Beverage declared a recess at 9:40 a.m. The meeting reconvened at 9:48 a.m.
Item 7. Consideration of water and sewer master plan for Shell Development, Job 9423.
Engineering Manager Chuck Gray reported that Shell's master plan is based on 2338 dwelling
units, a golf course, school, and park sites. The recommended potable water supply is 70 percent
groundwater and 30 percent imported water, and two reservoirs are planned to provide storage for
the project, which will take 20 years to complete.
George Bayse, of Shell Western E & P, Inc., reported that the plan calls for seven-day storage,
buried reservoirs, a well provided by Shell, and a gravity-flow sewer system. The preannexation
agreement will address capital facilities, costs and the phasing in greater detail. That agreement
will also address developer participation to fund capital facilities and financing options.
'r.
This matter has been reviewed by the Planning-Engineering-Operations Committee at several
meetings.
On a motion by Director Fox, seconded by Director Armstrong, the Board of Directors voted 5-0
to accept the Water and Sewer Master Plan for the Shell development.
Mr. Bayse, Mr. Crouch, and Assistant Engineering Manager Ken Vecchiarelli left the meeting at the
conclusion of this item.
Item 10. Consideration of Financial Statements for seven months ended January 31, 1996.
Business Manager Beverly Meza reported that the water fund showed a net income of $719,478
and the sewer fund showed a net income of $8,799 for the seven months ended January 31, 1996.
Total assets of $91,095,063 exceed total liabilities of $22,915,225 for a fund equity of
$68,179,838.
On a motion by Director Fox seconded by Director Scanlin, the Board of Directors voted 5-0 to
accept the financial statements for the seven month period ended January 31, 1996.
Item 11 . Consideration of Investment Portfolio Report. Business Manager Beverly Meza
reported that the average portfolio yield excluding Improvement District 2 Series C General
Obligation bond funds, is 5.66 percent.
On a motion by Director Korn seconded by Director Fox, the Board of Directors voted 5-0 to
accept the Investment Portfolio Report for February 29, 1995.
Item 12. Consideration of refunding Improvement District 2 General Obligation Bonds.
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April 11, 1996
Directors Korn and Scanlin stated that they own some of these bonds. Counsel advised them not
to vote or discuss this issue. Business Manager Beverly Meza reported that a reduction in the
general level of interest rates, improvement in the credit quality of ID 2, and shorter terms of
refunding bonds combine to make refunding a viable option, and projected savings for the
taxpayers in ID 2 would be in the neighborhood of between $1.2 and $1.5 million.
On a motion by Director Fox seconded by Director Armstrong, the Board of Directors voted 3-0-2
(Abstaining: Korn, Scanlin) to approve proceeding with the refunding process in ID 2.
Item 13. Consideration of District Risk Management Policy Statement and Procedures Manual.
General Manager William J. Robertson reported that staff recommends amending Section VIII of
the Risk Management procedures Manual to give the General Manager authority to settle claims
under $1,000.
On a motion by Director Fox seconded by Director Scanlin, the Board of Directors voted 5-0 to
approve amendments to Section VIII of the Yorba Linda Water District Risk Management Policy
Statement and Procedures Manual, giving the General Manager authorization to approve settlement
of damage claims under $1,000.
DISCUSSION CALENDAR
Item 14. General Manager William Robertson asked that this item be continued to the Board
meeting of April 25.
GENERAL MANAGER'S REPORT
Item 15. General Manager's oral report and comments.
a. Response to questions about LAIF: Mr. Robertson informed the Board that LAIF funds
are held in trust until the depositing agency wishes to withdraw them; these funds cannot be frozen
in an emergency; and there is only one pool of funds.
b. Report on communications with Daniel Calef. Mr. Robertson indicated that he responded
to Mr. Calef's concerns.
c. Report on District activities: Mr. Robertson reported on the 16-inch, 60-year old pipe,
which had burst under Bastanchury Road.
GENERAL COUNSEL'S REPORT
Item 16. General Counsel's report. Ms. Morningstar reported on a case where Santa Margarita
Water District prevailed when the Transportation Corridor Agencies sought to force them to move a
pipeline at their own expense.
COMMITTEE REPORTS
Item 17. AB 2109 Ad Hoc Committee. Met April 1 at 9:00 a.m. Attending were Directors
Beverage and Fox, and staff members Robertson and Lubin. The Committee reviewed a District
letter to Assemblyman Ackerman and Senator Lewis, explaining the District's position on AB
2109. Director Fox and Board President Beverage indicated that they had meetings with Senator
Lewis and Assemblyman Ackerman to discuss the District's position on AB 2109, in particular,
and the broader issue of local control versus centralization of services.
Item 18. Executive-Administration Committee.
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April 11, 1996
Item 19. Finance-Accounting Committee. Met April 3, at 9:00 a.m. Attending were Directors
Fox and Korn, and staff members Robertson and Meza. The Committee discussed refinancing
Improvement District 2 General Obligation bonds; credit card issues related to water bill payments;
and answers to questions raised about LAIF at a previous Board meeting.
Item 20. Personnel-Risk Management Committee.
Item 21. Planning-Engineering-Operations Committee. Met April 3, at 2:00 p.m. Attending
were Directors Armstrong and Scanlin, and staff members Robertson, Gray and Harsma. The
Committee discussed the Richfield Plant bid results for wells and the storage building; a sewer
settlement on Eureka Avenue; and a number of miscellaneous items.
Item 22. Public Information Committee. Scheduled a meeting for April 18 at 9:00 a.m.
INTERGOVERNMENTAL MEETINGS
Item 23. Report on Yorba Linda City Council meeting,Apri12 (Beverage): Nothing of concern to
the District transpired.
Item 24. MWDOC/OCWD Joint Workshop April 3 (Scanlin): This meeting was not attended by
a District representative.
Item 25. Ad Hoc Pringle Consolidation Bill (AB 2109) Committee, April 5 (Fox): This meeting
was not attended by a District representative.
Item 26. ISDOC Board meeting, April 9 (Fox): Indicated that Robert Huntley was-reelected to a
four-year term on LAFCO; stated that he and Director Korn would attend Legislative Day in
Sacramento; and the next membership meeting was scheduled for May 30, where attendees would
hear a report on the South County Consolidation Study.
Item 27. Report on Yorba Linda Planning Commission meeting, April 10 (Armstrong): This
meeting was canceled.
CLOSED SESSION
Item 28. General Manager's contract. There was no discussion on this item.
Item 29. 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. There was no discussion on this item.
Item 30. Pending litigation to which the District is a party, (Subsection (a) of Section 54956.9),
County of Orange, Case No. 714408; Plaintiff Daniel Romano and Joann Romano, and Daniel
Foldager and Patsy Ann Foldager; Defendant Yorba Linda Water District, et al. There was no
discussion on this item.
BOARD MEMBER COMMENTS/ITEMS FOR FUTURE CONSIDERATION
BOARD OF DIRECTORS ACTIVITY CALENDAR
The Board of Directors reviewed the Activity Calendar and made assignment changes.
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April 11, 1996
General Manager William I Robertson reported that a counteroffer from the B-Group would go to
the County today, in an attempt to resolve the impasse on the Orange County bankruptcy.
ADJOURNMENT
On a motion by Director Armstrong, seconded by Director Fox, the Board of Directors voted 5-0,
at 11:55 a.m., to adjourn to Thursday, April 25, at 8:30 a.m., at the District's headquarters on
Plumosa Drie.
Secretary/General Manager