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HomeMy WebLinkAbout1991-06-13 - Board of Directors Meeting MinutesPage . : z June 13, 1991 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING June 13, 1991 The Regular Meeting of the Board of Directors of the Yorba Linda Water District was called to order by President M. Roy Knauft, Jr. at 8:30 a.m., June 13, 1991, at the District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present were Sterling L. Fox, Arthur C. Korn, Carl T. Scanlin, Vice President Paul R. Armstrong and President M. Roy.Knauft, Jr. Also present were William Robertson, Secretary/General Manager; Cheryl Gunderson, Business Manager; Ray Harsma, Operations Superintendent; Arthur G. Kidman, District General Counsel; Michael Payne, Engineering Manager; Mike Robinson, Assistant Administrator; and, Barbara Bower, Secretary to the General Manager. The visitor present was Mr. Brian Johnson, representing AW Associates, who arrived at 8:35 a. m. CONSENT CALENDAR Following a discussion on the District's ability to generate computer tapes for the County Auditor as identified in Item No. 8 and Item No. 9 denial of the Pacific Bell claim, and on a motion by Director Fox and seconded by Vice President Armstrong, the Board of Directors voted 5-0 to approve the Consent Calendar as follows: Item 1. Approval of Minutes - Adjourned Regular meeting of May 30, 1991. Item 2. Authorization for the Directors to leave the State of California prior to next meeting. Item 3. Approval of payment of bills, payroll and refunds in the amount of $602,776.52 on Check Nos. 6945, 8060, 8160 through 8253; and Payroll Check Nos. 1277 through 1338; and one wire to MWDOC in the amount of $121,254.80 dated June 13, 1991. Item 4. Approval of Progress Payment No. 5 to BFI Constructors, in the amount of $308,776.00 for construction of the Elk Mountain Reservoir; and authorize staff to deposit $1,917.00 with Escrow Agent EI Dorado Bank as a substitute for retention earnings, Job No. 8918. Item 5 . Approval of Terms and Conditions for Water Service with Mr. and Mrs. Osmar Ferrari, and Mr. and Mrs. Adario Ferrari for their project located at 23700 Via Del Rio, Lot 8 of Tract No. 11662, Job No. 9119. Item 6. Approval to release the Guarantee Bonds with Pacesetter Business Properties in the amount of $2,500.00 for the Water Improvements for Lot No. 2 of P.M. 83-1085, Job No. 8332. Page June 13, 1991 Item 7. Approval to release the Guarantee Bond with Maier-Hostert Properties in the amount of $2,500.00 for the Water Improvements for Tract No. 13130, Job No. 8808. Item 8. Approval of an agreement with BSI Consultants, Inc. for the preparation of the Standby-Availability Assessments for Improvement District No. 2 in an amount not to exceed $4,800.00; and for the Sewer Maintenance Assessments for the Locke Ranch Sewer Area in an amount not to exceed $2,300.00. Item 9. Denial of claim submitted by Pacific Bell in the amount of $3,273.34. ACTION CALENDAR Item 10. Consideration of the Second Amendment to the 1989 Water Service Agreement - continued from the Board of Directors meeting of May 30, 1991. Mike Payne, Engineering Manager, reported the staff and AW Associates have concluded negotiations on the Second Amendment to the 1989 Water Service Agreement. Mr. Payne reported the agreement is in accordance with the terms and conditions established at the Board of Directors January 10, 1991 meeting. Mr. Payne then reviewed the terms, conditions and facilities in detail, and concluded his report with recommendation to approve the Second Amendment. Following recognition by President Knauft, Mr. Johnson reported AW Associates concurred with the Second Amendment and supported staff recommendation. Following a general discussion regarding the operation of Bryant Ranch Well No. 1, when the temporary tanks will be removed and the difference between close of escrow and occupancy, and on a motion by Vice President Armstrong and seconded by Director Scanlin the Board of Directors voted 5-0 to approve the Second Amendment to the 1989 Water Service Agreement; and, authorize the President and Secretary to execute the agreement. Item 11. Consideration of the Settlement Agreement and Release of Claims with equinox, Inc. et al. Mike Payne, Engineering Manager, reported that equinox has submitted an offer of $93,318.49 and agreement to settle a lawsuit filed by the District regarding equinox's failure to provide insurance for construction of the Elk Mountain Reservoir project. Mr. Payne reported the agreement provides for payment by equinox and the parties agree to release each other from future claims. The settlement amount is based upon the price difference between equinox's bid and the second low bidder, the District's legal fees and interest earnings. The settlement amount will be allocated to the Elk Mountain Reservoir project construction costs. On a motion by Director Fox and Seconded by President Knauft, the Board of Directors voted 5-0 to approve the Settlement Agreement and Release of Claims with equinox, Inc. et al.; and, authorize the President and Secretary to execute the agreement. Item 12. Report on the Ground Breaking Ceremony for the Camino De Bryant Reservoir project. Mike Payne, Engineering Manager, reported the staff would like to have an official groundbreaking ceremony to celebrate construction of the Camino De Bryant Reservoir. Mr. Payne reported that historically this type of activity is done in the Page -.f. June 13, 1991 afternoon and late in the work week, however, since this ceremony will take place in July, the Board may want to consider another time. Following a general discussion on the matter the Board selected a groundbreaking ceremony to be held on Friday, July 19, 1991 at 2:00 p.m. Item 13. Consideration of support for continuation of pass-through bank deposit insurance on Deferred Compensation Plan assets. Cheryl Gunderson, Business Manager, reported the United States Congress was considering legislation to reinstate insurance of deposits on Deferred Compensation Plans. Ms. Gunderson also reported this insurance is of the utmost importance as it will provide $100,000 of insurance for each Deferred Compensation Plan participant instead of the current limit of $100,000 for the District's entire portfolio. Ms. Gunderson concluded her report with a recommendation for approval to mail a letter in support of the proposed amendment to each of the District's congressional delegates. Prior to discussing this matter, Director Korn requested a ruling from general counsel as to whether it was a conflict of interest for a Director to discuss this matter when they were a member of the Deferred Compensation Plan. Mr. Arthur Kidman, District general counsel, rendered an opinion that it was not a conflict of interest for Board members to discuss matters under consideration by the United State Congress. The Board of Directors concurred that support of H.R. 2298 will protect the District's Deferred Compensation Plan assets. On a motion by Director Korn and seconded by Vice President Armstrong, the Board of Directors voted 5-0 to support continuation of pass-through bank deposit insurance on Deferred Compensation Plan assets; and, authorize the President to send letters to the District's Congressional delegates on this matter. DISCUSSION CALENDAR Item 14. Distribution of a Draft of the District's 1991-92 Annual Budget. William Robertson, General Manager, distributed a draft of the 1991-92 Annual Budget. Mr. Robertson reported the final Budget report will be presented for consideration at the Board of Directors June 27, 1991 meeting. This item was for information only and no action was taken. GENERAL MANAGER'S REPORT Item 15. General Manager's oral report and comments. Mr. Robertson reported this year's MWDOC School Program included a poster contest. Mr. Robertson then turned the presentation over to Mike Robinson, Assistant Administrator, for a review the posters received by the District. In addition, Mr. Robertson reported that Mr. Dave Larsen, District Labor Counsel, will arrive at approximately 9:30 a.m. for a status report on the Meet and Confer process. ~ Page 226-7 June 13, 1991 LEGAL COUNSEL'S REPORT Item 16. Mr. Arthur G. Kidman, District General Counsel, commented that the California Legislature is continuing to work on ways to balance the State budget on the back of utilities. Mr. Kidman then reviewed some of the current legislation pending in Sacramento. In addition, Mr. Kidman reviewed with the Board his recent letter regarding the EPA's new Lead regulations. STANDING COMMITTEE REPORT Item 17. There was no Executive-Administrative-Organizational Committee meeting report. Item 18. Report on the Finance-Accounting Committee meeting of June 6, 1991. The Committee reported the Draft 1991-92 Annual Budget was reviewed at the June 6, 1991 Committee meeting. Item 19. A Finance-Accounting Committee meeting was scheduled for Thursday, June 20, 1991, at 2:00 p.m. Item 20. No Personnel Committee meeting report was scheduled. Item 21. Report on Planning-Engineering-Operations Committee meeting of May 29, 1991. The Committee reported the Five Year Plan, 1989 Water Service Agreement Amendment No. 2, Palm Avenue Sewer Project, Well No. 10 and Bryant Ranch Irrigation Well rehabilitation projects, Highland Reservoir Master Plan, City Sewer Maintenance, Brighton Pre-Annexation Agreement Amendment No. 1 and Sewer Drainage Report were discussed at the May 29, 1991 Committee meeting. Item 22. Oral report on the Public Information Committee meeting of June 11, 1991. The Committee reported the June 11, meeting was deferred until Friday, June 14, 1991. INTERGOVERNMENTAL MEETINGS Item 23. Report on City Council meeting, June 4. President Knauft reported he did not attend the June 4, City Council meeting. Item 24. Report on MWDOC meeting, June 5. President Knauft reported that nothing of interest to the District was discussed at the June 5, 1991 MWDOC meeting. Item 25. Report on WACO meeting, June 7. President Knauft reported that Joan Irvine Smith's new water resources fund was the major topic of discussion at the June 7, 1991 WACO meeting. Page June 13, 1991 Item 26. Report on OCWD meeting, June 5. Director Fox reported he will substitute the June 5 meeting for the Joint OCWD/MWDOC meeting scheduled for June 17, 1991 at 7:30 a. m. Item 27. Report on Planning Commission meeting, June 12. Director Scanlin attended and reported that nothing of interest to the District was discussed at the June 12, 1991 Planning Commission meeting. BOARD MEMBER COMMENTS Item 28. Director Fox. Director Fox reported his wife is recovering well from her recent hip surgery; distributed a Time Magazine article on the environment to each Director and staff present; and, gave to Mike Robinson some resource materials on Xeriscape activities. Item 29. Director Korn. Director Korn commented on a recent PBS television special on recovery of the environment surrounding Mt. Saint Helens in Washington State. Mr. Dave Larsen, District Labor Counsel, arrived at 9:20 a.m. during discussion of Item No. 29. Item 30. Director Scanlin. Director Scanlin had no comments. CLOSED SESSION In order to accommodate Mr. Larsen's schedule, President Knauft requested the Board of Directors take Agenda Item No. 33 and 34 out of order. On a motion by Director Fox and seconded by Director Korn, the Board of Directors voted 5-0, at 9:28 a.m., to take a five minute recess and then go into closed session to discuss the following items: Item 33. Status of Meet and Confer. Item 34. Potlatch Claim. On a motion by Director Korn and seconded by Director Fox, the Board of Directors voted 5-0 to come out of closed session at 10:15 a.m. No action was taken by the Board of Directors during closed session. Item 31. Vice President Armstrong. Vice President Armstrong commented on the water testing at the Placentia Linda Hospital; water conservation video made for children that was given to Mike Robinson; and, requested that staff look into the possibility of prepaying multiple water bills at one time. i Item 32. President Knauft. President Knauft had no comments. 1S Page 26 June 13, 1991 BOARD OF DIRECTORS ACTIVITY CALENDAR The Board of Directors reviewed the activity calendar and made assignments through the end of July. ADJOURNMENT On a motion by Director Fox and seconded by Director Scanlin the Board of Directors voted 5-0 at 10:25 a.m. to adjourn to the next regular meeting which is scheduled for Thursday, June 27, 1991 at 8:30 a.m. at the District Boardroom. Wiliam J. Robertson General Manager/Secretary