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HomeMy WebLinkAbout1991-01-10 - Board of Directors Meeting MinutesPage; January 10, 1991 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING January 10, 1991 The regular meeting of the Board of Directors of the Yorba Linda Water District was called to order by Arthur C. Korn, President, at 8:30 a.m., January 10, 1991, at the District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present were: Paul Armstrong, Sterling Fox, Carl Scanlin, Vice President Roy Knauft and President Arthur C. Korn. Also present were William Robertson, Secretary/General Manager; Cheryl Gunderson, Business Manager; Ray Harsma, Operations Superintendent; Mike Payne, Engineering Manager; Mike Robinson, Assistant Administrator; and, Barbara Bower, Secretary to the General Manager. Also present were Arthur G. Kidman, District legal counsel; Marjory Thayer, retired Customer Service Clerk II; and, Brian Johnson, representing AW Associates PRESENTATION Item 1. President Korn recognized Marjory I. Thayer on the occasion of her retirement after eleven years of service to the District and its customers. On a motion by Director Armstrong and seconded by Vice President Knauft, the Board of Directors voted 5-0 to adopt Resolution No. 91-01 Recognizing Marjory I. Thayer on the occasion of her retirement. ANNUAL REORGANIZATION OF THE BOARD OF DIRECTORS Item 2. Annual Selection of President and Vice President. President Korn reported that in accordance with the Ordinance No. 1, and the proposed Rules for Organization and Procedure, it is appropriate for the Board to consider election of its President and Vice President for calendar 1991. On a motion by Director Fox and seconded by Director Armstrong, Vice President M. Roy Knauft, Jr. was nominated for President of the Board of Directors. There were no further nominations, and on a motion by Director Fox and seconded by Director Armstrong, the Board of Directors voted 4-0 to elect Vice President M. Roy Knauft, Jr. as President of the Board of Directors. Vice President Knauft abstained. President Korn formally turned the chair over to newly elected President Knauft who then thanked the Board, and President Korn for his tenure as President during 1990. President Knauft then entertained motions nominating a Vice President. On a motion by Director Fox and seconded by Director Scanlin, Director Paul R. Armstrong was nominated for Vice President of the Board of Directors. There were no further nominations, and on a motion by Director Fox and seconded by Director Korn the Board of Directors voted 4-0 to elect Paul R. Armstrong as Vice President of the Board of Directors. Vice President Armstrong abstained. Page - January 10, 1991 Item 3. Annual Review of the Board of Directors Committee Assignments. President Knauft reviewed the Board of Directors Standing Committees and made the following assignments: Executive-Administration-Organizational Committee: M. Roy Knauft, Jr. and Paul R. Armstrong. 2. Finance-Accounting Committee: M. Roy Knauft, Jr. and Arthur C. Korn. Personnel Committee: Sterling L. Fox and Arthur C. Korn. 4. Planning-Engineering-Operations Committee: Paul R. Armstrong and Carl T. Scanlin. 5. Public Information Committee: Sterling L. Fox and Carl T. Scanlin. In addition to the Standing Committee assignments, President Knauft made the following changes in other assignments for specific purposes: 1. District-City Finance Committee: M. Roy Knauft, Jr. replaced former Director Whit Cromwell. Paul R. Armstrong remained on the Committee. 2. ACWA/JPIA Representative: Sterling L. Fox is the designated Alternate not M. Roy Knauft, Jr. as was shown in the Agenda Report. Paul R. Armstrong remains as the designated ACWA/JPIA Representative. There were no other changes in other assignments for specific purposes. Item 4. Annual Review and Consideration of the Board of Director's Compensation. President Knauft reviewed the Board's current compensation and reported that District legal counsel researched the possibilities of retroactive 5% adjustments. Mr. Arthur G. Kidman, District legal counsel, reported that the Board of Directors are allowed to increase their compensation retroactively in 5% increments. Consequently, Mr. Kidman interprets the law to mean the Board could go to $135 per meeting if they desired. In addition, Mr. Kidman reported that any change in compensation must be adopted by Ordinance, and the Ordinance could include automatic 5% increases. Following a general discussion on compensation, President Knauft proposed Ordinance 91-01 regarding Board compensation to adjust compensation to $125 for each day's attendance at meetings of the Board of Directors or Committees of the Board or other Agencies' Board meetings attended as an elected/appointed representative; $50 per day for each day's service as a Director rendered at the request of the Board of Directors; and, compensation for service shall not exceed 10 day's in any calendar month; members shall receive reimbursement or payment of expenses, according to Page - ` January 10, 1991 District rules, incurred in the performance of each director's duties required or authorized by the Board of Directors. The Ordinance shall not include automatic increases, and shall become effective sixty days after its adoption. On a motion by Vice President Armstrong and seconded by Director Fox the Board of Directors voted 5-0 to authorize staff to prepare an Ordinance for action by the Board to adjust compensation to $125 for each day's attendance at meetings of the Board of Directors or Committees of the Board or other Agencies' Board meetings attended as an elected/appointed representative; and, all other compensation terms defined Ordinance 90-01 shall remain in effect. CONSENT CALENDAR President Knauft noted corrections to Items 26 through 30 on page 5 of the minutes. In response to a question by Director Fox, General Manager Robertson noted the James M. Montgomery contract has appeared as a Consent Calendar matter in previous years. At the request of Vice President Armstrong, Item No. 7 was removed from the Consent Calendar for separate action. On a motion by Vice President Armstrong and seconded by Director Korn, the Board of Directors voted 5-0 to approve the Consent Calendar as follows: Item 5. Approval of Minutes - Regular meeting of December 27, 1990, as corrected Item 6. Authorization for the Directors to leave the State of California prior to next meeting. Item 8. Approval to renew Consultant Contract with James M. Montgomery Consulting Engineers Inc. for Water Engineering Services for Calendar Year 1991. DISCUSSION Item 7. Authorization for President and Secretary to sign a Release of Lien for Improvement District No. 2, Series "B" Bond Sale. Michael Payne, Engineering Manager, reported that a land owner has developed their lot, connected it to the water system and have requested release of the lien of the I.D.-2 Series "B" bond sale. Vice President Armstrong inquired as to the staff effort versus the payback of processing individual requests, and if the District could prepare a blanket release for all developed properties in lieu of the current method of releasing liens on an individual basis. District legal counsel responded that he preferred releases on an individual basis to protect the District from unforeseen difficulties that may arise. Following a general discussion on the mechanics of processing a release of lien, protections built into the system and processing this request while reviewing possibilities to simplify the process, and on a motion by Vice President Armstrong and seconded by Director Korn the Board of Directors voted 5-0 to authorize the President and Secretary to execute the Release of Lien for Improvement District No. 2 Series "B" Bond Sale. :1~~-i3 Page. January 10, 1991 At the request of President Knauft, Item No. 10 and 11 were taken out of order to accommodate Mr. Brian Johnson, representing AW Associates. Item 10. Consideration of Amendment No. 2 to the 1989 Water Service Agreement. Michael Payne, Engineering Manager, reported that AW Associates have requested the Second Amendment to the 1989 Water Service Agreement to allow construction of up to 87 units in Area "J" of their development. Mr. Payne then reviewed the details of twelve deal points with the Board of Directors: 1. Reimburse the District for all administrative and legal costs associated with preparation of Amendment No. 2. 2. Complete the water well transmission pipeline prior to framing of any units. 3. Install an above ground temporary storage tank with a capacity of 210,000 prior to framing of any units. The temporary storage tank will be installed and operated at owners own cost. 4. Install a temporary booster station, acceptable to the District, capable of supplying domestic and fire flow requirements prior to framing of any units. The booster stations shall be installed and operated at owners own cost. 5. Secure a site for a water treatment plant prior to the close of escrow on the first unit. 6. The permanent Elk Mountain Booster Station shall be operational prior to the close of occupancy of the first unit. 7. Complete a lot line adjustment at the Elk Mountain Reservoir granting additional land to the District prior to the close of escrow on the first unit. 8. The new water well No. 1 shall be fully operational prior to May 1, 1991. 9. Complete the "Bryant Irrigation Well" prior to September 1, 1991. 10. Complete installation of facilities, to the District's satisfaction, that allow blending of well and imported water supplies prior to the close of escrow of the first unit. 11. Inform all buyers of units that the water system is temporary and is subject to outages while the District constructs permanent facilities. 12. All other requirements of the 1989 Water Service Agreement and Amendment No. 1 shall remain in full force and effect. Mr. Payne reported the Planning-Engineering-Operations Committee reviewed the terms at their January 8 meeting. Lastly, Mr. Payne recommended that the Board approve the terms and authorize District legal counsel to draft Amendment No. 2 to the 1989 Water Service Agreement. In response to a request by President Knauft, Mr. Brian Johnson, representing AW Associates, reported that AW Associates agreed with the terms as presented by District staff. Following a general discussion on the timing of the agreement, and on a motion by Vice President Armstrong and seconded by President Knauft the Board of Directors voted 5-0 to approve the conditions for a proposed amendment to the 1989 Water Service Agreement and authorize legal counsel to prepare a formal amendment for final action by the Board. Item 11. Status Report on the Bryant Ranch Water Well Projects. Michael Payne, Engineering Manager, presented a video tape of the Bryant Ranch Irrigation Well investigation and an oral report on the current status of capital facilities in Improvement District No. 2. This matter was for information only and no action was taken by the Board. Page January 10, 1991 PUBLIC HEARING CALENDAR Item 9. Report on the 1990 Update of the Urban Water Management Plan. President Knauft opened the public hearing. The District's Secretary submitted proof of publication of the public hearing and reported the District did not receive correspondence or oral comment from the public on this matter. William Robertson opened staff testimony with a report that the District is required by law to update it's Urban Water Management Plan every five years. Mr. Robertson then turned over discussion of the Plan to Mr. Michael Robinson, Assistant Administrator II, for a detailed review of the Plan's contents. Mr. Robinson noted that the 1990 update represents a philosophical shift from reactive to proactive water conservation programs. These programs are intended to effectively deal with current and potential water supply deficiencies. The Board reviewed the text and addressed the major policy choices for Alternative Water Conservation Measures discussed in Chapter 6 of the Plan. In addition, the Board discussed supply to the lake at Eastlake and urged staff to meet with Orange County Water District regarding the possibilities of curtailment of local pumping for agricultural purposes. On a motion by Director Fox and seconded by Vice President Armstrong the Board of Directors voted 5-0 to adopt Resolution 91-02 adopting the 1990 update of the Urban Water Management Plan. DISCUSSION CALENDAR President Knauft declared a ten minute recess at this point in the meeting. Item 12. Report on the Allen-McColloch Pipeline Buy-out by Metropolitan Water District of Southern California. William Robertson, General Manager, reviewed the proposed AMP buy-out by Metropolitan Water District (MWD) with the Board. The Board discussed this matter at their December 13, 1990 meeting and Mr. Robertson wanted to reconfirm the Board's position on the major buy-out issues. Following extensive discussion, the Board's position on January 10 was quite similar to their views on December 13th. In addition, the Board directed the General Manager to write a letter to Mr. Stanley Sprague, MWDOC General Manager, expressing the District's opinion on the following buy-out issues: 1. Guaranteed Hydraulic Grade Line. One of the District's major concerns is maintaining the guaranteed AMP Hydraulic Grade Line (HGL). Mr. Sprague reported that MWD's operating policies do not include a guaranteed HGL and preliminary studies indicate the District's HGL will not be affected by a Metropolitan takeover. The Board, however, noted that without guarantees, the south County agencies could take additional flows to the detriment of District customers. The Board urged MWDOC to study the AMP flow characteristics both before and after a Metropolitan takeover, and to complete these studies with all due speed. In addition, the Board was firm that the buy-out agreement include language to build a pump station at DI-01 and DI-02 in the event the District's HGL ever drops below the 780 foot level. 2. MWD's past performance in Orange County. The Board expressed concern that Metropolitan's performance in Orange County is not very good, as it relates to construction of new facilities away from the Diemer Plant. Consequently, the Board is extremely cautious that Metropolitan will attempt to further delay the buy-out or related facilities. The Board urged MWDOC to continue the Metropolitan negotiation process without delay. s Page January 10, 1991 3. Completion of the Tunnel phase of MWD's Central Pool Augmentation Project (CPAP). The Board noted that without the tunnel phase of the CPAP, Metropolitan will have problems meeting its service commitments in Orange County. Moreover, if these improvements are not completed in a timely manner, the advantages of Metropolitan takeover are severely limited. MWDOC cannot force language requiring completion of a project that may be delayed by environmental or financial reasons. The Board, however, urged MWDOC to hold fast to a specific date that Metropolitan will either take over the AMP otherwise they will undertake the timely completion of alternative facilities, such as the Diemer Booster Station, in the event primary facilities are delayed. 4. Buyout Price. The Board expressed concern over the financial considerations proposed by Metropolitan. Metropolitan's buy-out proposal based on taking over payments is still not that attractive to the District. This concern is magnified if Metropolitan delays the buy-out for some unforeseen reason and, therefore, attempts to delay the 1998 date to take over payments. In order to alleviate this concern, the Board supported MWDOC's position that Metropolitan take over AMP payments in 1998 even though the CPAP, or other related projects, may not be complete. Additionally, the Board also feels quite strongly that the final package must include provisions for Metropolitan to provide comprehensive liability insurance for all AMP facilities, and take over the AMP operations and maintenance costs including pump station O&M if necessary. 5. Reaction of other participants to the AMP buyout. The Board is concerned about issues raised by other participants. Consequently, the Board urged MWDOC to keep the District apprised of terms and conditions as they develop, and the opinions and issues raised by other agencies. This matter was for information only and no action was taken by the Board of Directors. Director Korn left at this point in the meeting. Item 13. Approval to Delay Construction of Phase IIA, Booster Pump Station, of the Allen-McColloch Pipeline Flow Augmentation Project. William Robertson, General Manager reported that MWDOC requested approval to delay construction of the Diemer Booster Pump Station for one year. Mr. Robertson reported the delay is justified and will not affect the District. On a motion by Vice President Armstrong and seconded by Director Fox, the Board of Directors voted 4-0 to authorize the General Manager to execute a letter agreement to delay construction of Phase IIA of the Allen-McColloch Pipeline Flow Augmentation Project. Item 14. Legal Services - Metropolitan Buy-out of the Allen-McColloch Pipeline. Mr. Arthur G. Kidman reported that a letter agreement, enclosed in the Board of Directors Agenda packet, addresses an understanding that the District may have to seek outside counsel in the event the AMP buy-out matter becomes adversarial in nature. In response to a question by President Knauft, Mr. Kidman reported that Santiago County Water District has already signed the agreement. Following a general discussion on the legal ramifications and on a motion by Vice President Armstrong and seconded by Director Scanlin the Board of Directors voted 4-0 to authorize the President to execute the letter consenting to legal representation by McCormick, Kidman and Behrens for Metropolitan's Buy-out of the Allen-McColloch Pipeline subject to terms set forth in the letter agreement. Page January 10, 1991 GENERAL MANAGER'S REPORT Item 15. William Robertson handed out copies of the revised Board of Directors Rules for Organization and Procedures. The hand-out incorporates comments received at the Board's December 27, 1990 meeting. Mr. Robertson also handed out copies of MWDOC's water supply report for January. The report indicates the supply conditions on the State Water Project system and Colorado River water system are in poor condition after four years of drought. In addition, Mr. Robertson recognized Mrs. Cheryl Gunderson, Business Manager, who reported she is pregnant and August 13, 1991 is the projected due date. STANDING COMMITTEE REPORT Item 16. No Executive-Administrative-Organizational Committee meeting report was scheduled. Item 17. No Finance-Accounting Committee meeting report was scheduled. Item 18. Authorization for Payment of Bills. On a motion by Vice President Armstrong and seconded by Director Scanlin, the Board of Directors voted 4-0 to approve payment of bills, payroll and refunds in the amount of $460,893.48 on Check Nos. 6676, 6467, 6468, 7219 through 7293; and Payroll Check Nos. 6221 through 6279; and two wires, one to ACWA in the amount of $15,593.37 dated December 30, 1990 and one to MWDOC in the amount of $254,733.26 dated January 11, 1991. Item 20. Oral report on the Personnel Committee meeting of January 8, 1991. The Personnel Committee reported that the Assistant General Manager recruitment process and status, Employee survey, scheduling a photos of Director Scanlin and General Manager Robertson, and a personnel matter were discussed at the January 8th Committee meeting. Item 21. Oral report on the Planning-Engineering-Operations Committee meeting of January 7, 1991. The Committee reported that the Elk Mountain Reservoir, Amendment No. 2 to the 1989 Water Service Agreement, James M. Montgomery consultant fees and Allen-McColloch Pipeline were discussed at the Committee's January 7th meeting. Item 22. No Public Information Committee meeting report was scheduled. INTERGOVERNMENTAL MEETINGS Item 23. Report on City Council meeting of January 2, 1991. Vice President Armstrong reported that the Imperial Highway issues was discussed at length during the January 2nd City Council meeting. Item 24. Report on MWDOC meeting of January 2, 1991. President Knauft reported the January 2nd meeting was canceled and rescheduled to January 16, 1991. -3-Vci Page 2EW January 10, 1991 Item 25. Report on OCWD meeting of January 2, 1991. Director Fox reported that OCWD discussed its budget at the January 2nd meeting. Director Fox also reported that the $82 million Budget is scheduled for adoption on February 20th. Item 26. Report on Planning Commission meeting of January 9, 1991. Director Scanlin reported the Planning Commission discussed changing zoning of land in the unincorporated area of the city adjacent to Baldwin properties and the Chino Hills State Park from Agricultural to Residential - Low density. BOARD MEMBER COMMENTS Item 27. Vice President Armstrong: Vice President Armstrong reported the local Cable Television franchise now has voice capability on the Government Access channel and the District should take advantage of it. In addition, Vice President Armstrong request that staff look into new forms for our water bills that do not require the use of the automatic bill stuffing machine. Item 28. Director Fox: Director Fox had no comments. Item 29. President Knauft: President Knauft had no comments. Item 30. Director Korn: Director Korn was absent. Item 31. Director Scanlin: Director Scanlin had no comments. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board reviewed the activity calendar and assignments through the first meeting in February were made. In addition, Vice President Armstrong reported he will be out of the country between February 5, 1991 and March 5, 1991. CLOSED SESSION On a motion by Director Fox and Seconded by Director Scanlin the Board of Directors voted 4-0 to go into closed session at 11:45 a.m. with the General Manager, District legal counsel and Engineering Manager to discuss potential litigation. On a motion by Vice President Armstrong and seconded by President Knauft the Board of Directors voted 4-0 to come out of closed session at 11:56 a.m. and authorize the District staff and legal counsel to pursue legal action against the holder of equinox bid bond. Page. `d January 10, 1991 ADJOURNMENT On a motion by Director Scanlin and seconded by Vice President Armstrong, the Board of Directors voted 4-0 to adjourn the meeting at 11:58 a.m. i Wiliam J. Robertson General Manager/Secretary