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HomeMy WebLinkAbout2016-08-11 - Board of Directors Meeting Minutes 2016-148 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, August 11, 2016, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The August 11, 2016 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Collett at 8:30 a.m. The meeting was held in the Board Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. PLEDGE OF ALLEGIANCE President Collett led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Ric Collett, President Marc Marcantonio, General Manager Mike Beverage, Vice President Steve Conklin, Engineering Manager Phil Hawkins John DeCriscio, Operations Manager Bob Kiley Gina Knight, Human Resources/Risk Manager Gary Melton Delia Lugo, Finance Manager Damon Micalizzi, Public Information Manager Art Vega, Information Technology Manager Annie Alexander, Executive Secretary Anthony Manzano, Senior Project Manager Laurie McAllaster, Records Mgmt Administrator Kelly McCann, Senior Accountant Malissa Muttaraid, Public Affairs Representative Rachel Padilla, Customer Service Supervisor Alex Thomas, Water Quality Engineer ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Gene Hernandez, Councilmember, City of Yorba Linda James Fisler, Director, Mesa Water District Stacy Taylor, Public and Govt Affairs Mgr, Mesa Water District Tom Babnick, Resident Wayne Miller, Resident Al Nederhood, Resident Ben Parker, Resident Cristy Parker, Resident Nicky Treadway, Resident Minutes of the YLWD Board of Directors`Regular Meeting Held August 11, 2016 at 8:30 a.m. 1 2016-149 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Marcantonio requested that Item No. 8.5. be deleted from the agenda and introduced Director Fisler and Ms. Taylor from Mesa Water District who were in attendance to make a brief presentation to the Board. President Collett suggested that the presentation be added to the agenda as Item No. 5.2. 5. INTRODUCTIONS AND PRESENTATIONS 5.1., MWDSC/MWDOC Director's Report None. 5.2. Presentation by Representatives of Mesa Water District Director Fisler congratulated the District in regards to the recent court ruling and briefly commented on the case. He also announced that he was planning to run for President of ISDOC and requested the Board's support in the upcoming election. He then responded to questions from the Board regarding the election. 6. PUBLIC COMMENTS Mr. Al Nederhood, resident, commented on Director Beverage's decision not to run for reelection, contributions listed on a Form 460 filing for the Citizens to Protect our Water, and a statement attributed to President Collett. Ms. Nicki Treadway, resident, read some excerpts from an article previously published in the OC Register that was written by a former Board member. Mr. Tom Babnick, resident, commented on his previous work experience, the recent reduction of the water rate, and the District's financials. He also suggested that the water rate be reduced even further. 7. CONSENT CALENDAR Director Beverage made a motion, seconded by Director Hawkins, to approve the Consent Calendar. Motion carried 5-0. 7.1. Minutes of the Board of Directors Regular Meeting held June 9, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$643,061.59. Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 2 2016-150 7.3. Unaudited Financial Statements for the Period Ending June 30, 2016 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending June 30, 2016. 7.4. Directors and General Manager Fees and Expenses Report for Fourth Quarter FY 2015/16 Recommendation: That the Board of Directors receive and file the Directors and General Manager Fees and Expenses Report for Fourth Quarter FY 2015/16. 8. ACTION CALENDAR 8.1. Rules and Regulations for Water and Sewer Service Mr. Conklin explained that staff in multiple departments had been working on updating these documents for past few years. The proposed revisions will bring the rules and regulations up to current standards. Mr. Marcantonio responded to questions from the Board regarding illegal connections to hydrants and noted that consideration of policies related to this issue and other security related concerns would be considered during future development of the District's strategic plan. Director Beverage made a motion, seconded by Director Kiley, to approve Resolution No. 16-15 adopting Rules and Regulations for Water Service and rescinding Resolution No. 12-05. Motion carried 5-0 on a roll call vote. Director Melton made a motion; seconded by Director Hawkins, to approve Resolution No. 16-16 adopting Rules and Regulations for Sewer Service and rescinding Resolution No. 98-01. Motion carried 5-0 on a roll call vote. 8.2. 2016 Public Health Goals Report Mr. Conklin explained that California law requires the District to prepare a Public Health Goals (PHG) Report every 3 years if any water quality measurements have exceeded any PHG levels or Maximum Contaminant Level Goals (MCLGs) established by the California Office of Environmental Health Hazard Assessment (OEHHA). For substances where OEHHA has not. set a PHG, the United States Environmental Protection Agency MCLGs apply. These are not enforceable standards and no action on the District's part is required. Only 5 water constituents were detected that exceeded their PHGs and MCLGs (coliform, copper, Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 3 2016-151 arsenic, uranium and gross alpha). However, none of these detected constituents exceed enforceable drinking water standards. The Board is required to officially accept the PHG report, notify the public of its availability for review, and hold a public hearing to respond to and/or accept public comments. Mr. Conklin then responded to questions from the Board regarding the public notification methods to be utilized. Director Kiley made a motion, seconded by Director Hawkins, to (1) approve the 2016 Public Health Goals Report; (2) authorize staff to notice the public of its availability for review and comment; and (3) schedule a public hearing to respond or accept public comments during the regular Board meeting on September 22, 2016. Motion carried 5-0. 8.3. Construction Contract for the Fairmont Booster Pump Station Upgrade Project • Mr. Conklin explained that staff had been working on this project for several years and that it was the keystone for meeting the District's long- term needs. Staff solicited bids for the replacement and upgrade of the Fairmont Booster Pump Station (FBPS) and refurbishment of the Fairmont Reservoir. The construction of this project will allow YLWD to fully utilize either water source (groundwater or import water) in all areas of the District. Additionally, it will improve the resiliency, reliability, and efficiency of the water distribution system. Over 70 individuals attended the pre-bid meeting following which 7 contractors submitted sealed bids. The design consultant estimated the cost of the project to be $7M and the bids ranged from a low of $6.9M to a high of $10.2M. Following review of the bid documents, staff has recommended award to Pacific Hydrotech. Mr. Conklin then responded to questions from the Board regarding the company's previous work for the District, the estimated completion date of the project, and how long the project had been planned. Mr. Wayne Miller, resident, commented on his previous request that the Board consider delaying construction of the FBPS project, the cost of the project as identified in previous budget documents, and the associated benefit to the proposed Esperanza Hills and Cielo Vista development projects. He also commented on the Mitigated Negative Declaration and Initial Environmental Study for the FBPS Upgrade Project and obtaining developer funding to offset the cost of construction. Mr. Ben Parker, resident, commented on statements made during a recent YLWD Citizens Advisory Committee meeting regarding the benefits of the FBPS, remarks made during a previous Board meeting regarding the high cost of desalination, and existing barriers to pumping 100% groundwater. He further commented on the cost of the FBPS project and the proposed Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 4 2016-152 • Esperanza Hills and Cielo Vista development projects, and requested that the Board defer taking action on this item until further evaluation can be completed. Staff then responded to questions from the Board regarding the need for additional wells, the District's current and potential groundwater production percentage and the status of various construction projects. Staff also provided an overview of the benefits of the FBPS Upgrade Project and OCWD's desalination scenarios (e.g. staff exercises). At the request of President Collett, Mr. Conklin explained the appr,oval process and calculation of developer costs for the proposed Esperanza Hills and Cielo Vista development projects. Mr. Marcantonio explained the District's legal obligations in relation to the provision of water service within its boundaries. Mr. Conklin then provided additional background information regarding the FBPS Upgrade Project and responded to related questions from the Board. Mr. DeCriscio remarked on the benefits the FBPS Upgrade Project would provide during MWDSC shut downs. Director Barbre briefly commented on MWDSC's annual shut downs for maintenance and future repair/replacement of the Allen-McColloch Pipeline. Director Hawkins made a motion, seconded by Director Kiley, to award the Construction Contract for the Fairmont Booster Pump Station Upgrade Project to Pacific Hydrotech Corporation for $6,911,100.00, Job No. J2010-11B. Motion carried 5-0. President Collett thanked staff for their work on this long-term project. 8.4. Extension of Professional Services Agreement for Geotechnical Services Mr. Conklin provided an overview of Hushmand Associates' prior and current geotechnical services for the District. He explained that staff was requesting an extension to Hushmand's agreement as the not-to-exceed amount would soon be depleted and their assistance is needed for the 2015 Waterline Replacement Project, the Richfield Road Water Main Project, and on-call services in the event of an emergency. Staff will be issuing a separate Request for Proposal for similar services for construction of the FBPS and other projects during the calendar years 2017 through 2019. Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 5 • 2016-153 Director Beverage made a motion, seconded by Director Hawkins, to approve an extension to Hushmand Associates, Inc.'s Professional Services Agreement through calendar year 2016 in the amount of $64,500, for an amended total cost not-to-exceed $194,500, to provide required project geotechnical services for the 2015 Waterline Replacement and Richfield Road Water Main projects and potential on- call services. Motion carried 5-0. e _ •- e --••-• er Uniform Service& This item was removed from the agenda. 9. DISCUSSION ITEMS 9.1. Extension of Maturity Date for Existing Line of Credit with Wells Fargo Bank Mrs. Lugo explained that in 2012 the District had entered into a 3-year Line of Credit (LOC) Agreement with Wells Fargo for $7M which has been fully drawn to fund capital improvement projects. The original maturity date was extended through September 2016 and in May, staff submitted a request to extend it through September 2017. Wells Fargo is willing to do grant this request given the District pay-down $3.5M of the principle balance due, submit a monthly payment of $200K for the next year, and a balloon payment of $1.3M in September 2017. The cost to extend the maturity date will be up to $25K. This is a significant increase compared to the cost of $2,040 when the first extension was granted in 2014. Staff inquired as to the reason for the increase and received a response from Wells Fargo indicating that they have new legal counsel and are subject to new regulations (Basel III). Staff reviewed this matter with YLWD's financial advisors matter and Raftelis has recommended that the Board consider moving forward with the extension in an effort to maintain the District's AA rating from Fitch. Staff will present this action for the Board's consideration at the next regular meeting. Mrs. Lugo then responded to questions from the Board regarding the impact on the District's bond rating, potentially paying off the entire balance, Raftelis' availability to attend the next meeting, and the status of the bond refunding process. Mrs. Cristy Parker, resident, commented on the cost of extending the LOC, the Wells Fargo closing documents, and terms of the credit agreement specifically in regards to default. She suggested that an attorney review the credit agreement and determine if any amendments may be needed should the District decide to extend the maturity date of the LOC. Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 6 2016-154 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report President Collett commented on issues associated with the previous installation of lead pipes in some neighborhoods in Pittsburgh. 10.2. Directors' Reports Director Hawkins commented on the amount of landscape irrigation he had recently observed in the Sacramento area as compared to Morro Bay and San Luis Obispo. ■ OCWD H2O Learning Center Dedication —August 5, 2016 (Kiley) Director Kiley reported on his attendance at this event. 10.3. General Manager's Report Mr. Marcantonio asked each of the managers or their designees to provide a report regarding activities within their respective departments. Mr. Conklin reported on the status of various construction projects. He also commented on Anaheim's recycled water project, Poseidon's desalination project, and the YL Town Center project. Mr. DeCriscio reported on current and historical water production trends. Mrs. Lugo reported that staff was currently working on the audit, the advance refunding, and the water/sewer rate study update. Raftelis is scheduled to provide a presentation to the Board during the meeting scheduled August 17, 2016 at 4:30 p.m. Mr. Vega reported on the status of the lease agreement with Konica Minolta, topics discussed during a recent meeting regarding technology and emergency management, and the number of blocked threats during the previous month. Mr. Micalizzi reported on recent legislative activity, participant selection for SWRCB's water conservation workgroup, revisions to the District's conservation ordinance, current and historical conservation trends, distribution of the latest issue of the newsletter, and update of the District's website. He also responded to questions from the Board regarding the status of the District's self-certification application to SWRCB. Mrs. Knight reported that staff was working on development of a succession plan, fostering relations with local law enforcement, and the condition of an employee who was recently in a traffic collision. Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 7 2016-155 Mr. Marcantonio provided a correction regarding the estimated cost of the consolidated election as reported to the Board during the last meeting. The OC Registrar of Voters had recently quoted the District a cost of $74K but following further inquiry, staff was advised that the cost will be approximately $148K. The latter amount is included in the FY 2016/17 budget. 10.4. General Counsel's Report None. 10.5. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS • 11.1. Interagency Committee with MWDOC and OCWD (Collett / Melton) • Minutes of the meeting held July 26, 2016 at 4:00 p.m. were provided in the agenda packet. ■ Next meeting is scheduled September 27, 2016 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) ■ Minutes of the meeting held July 27, 2016 at 9:00 a.m. were provided in the agenda packet. • Next meeting is scheduled August 23, 2016 at 11:00 a.m. at YL City Hall. 11.3. Interagency Committee with City of Placentia and Golden State Water Co. (Collett / Kiley) • Minutes of the meeting held August 9, 2016 at 4:00 p.m. will be provided when available. • Next meeting is yet to be scheduled. 11.4. Citizens Advisory Committee (Melton) • Minutes of the meeting held June 27, 2016 at 8:30 a.m. were provided in the agenda packet. Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 8 2016-156 ■ Minutes of the meeting held July 25, 2016 at 8:30 a.m. were provided in the agenda packet. ■ Next meeting is scheduled August 29, 2016 at 8:30 a.m. 12. INTERGOVERNMENTAL MEETINGS The Directors and staff reported on their attendance at the following meetings. 12.1. YL City Council —August 2, 2016 (Beverage) Councilmember Hernandez commented on the future construction of the Anaheim Sustainability Center and citizens' related concerns. 12.2. MWDOC Board —August 3, 2016 (Melton) Director Melton expressed an interest in obtaining a copy of a documentary titled "Killing the Colorado". 12.3. OCWD Board —August 3, 2016 (Kiley) 12.4. WACO —August 5, 2016 (Kiley) 12.5. LAFCO —August 10, 2016 (Beverage —As Needed) 12.6. YL Planning Commission —August 10, 2016 (Melton) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from August 12, 2016 — September 30, 2016 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. Gun Club Road Linear Park Ribbon Cutting Ceremony—August 13, 2016 Yorba Linda State of the City Address October 2, 2016 CSDA Annual Conference — October 10-13, 2016 Director Hawkins made a motion, seconded by Director Kiley, to approve Director attendance at these events if desired. Motion carried 5-0. Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 9 2016-157 15. CLOSED SESSION The meeting was adjourned to Closed Session at 10:25 a.m. All Directors in attendance were present. Also present were Messrs. Gagen, Marcantonio, and Micalizzi and Mrs. Knight. 15.1. Conference with Legal Counsel — Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: Kent Ebinger and Yorba Linda Taxpayers Association vs. Yorba Linda Water District (OC Superior Court — Case No. 00829548) 15.2. Conference with Legal Counsel -- Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: Irvine Ranch Water District vs. Orange County Water District (OC Superior Court — Case No. 00858584) Messrs. Gagen, Marcantonio and Micalizzi and Mrs. Knight left Closed Session prior to discussion of the following item. 15.3. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 11:13 a.m. No action was taken during Closed Session that was required to be reported under the Brown Act. 16. ADJOURNMENT 16.1. The meeting was adjourned at 11:14 a.m. ,A Special Board of Directors Meeting has been scheduled Wednesday, August 17, 2016 at 4:30 p.m. The next Regular Board of Directors Meeting will be held Thursday, August 25, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held August 11,2016 at 8:30 a.m. 10