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HomeMy WebLinkAbout1991-02-14 - Board of Directors Meeting MinutesPaged February 14, 1991 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING February 14, 1991 The regular meeting of the Board of Directors of the Yorba Linda Water District was called to order by M. Roy Knauft, Jr., President, at 8:31 a.m., February 14, 1991, at the District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present were: Sterling Fox, Arthur C. Korn, Carl Scanlin, Vice President Paul Armstrong and President M. Roy Knauft, Jr. Also present were: William Robertson, Secretary/General Manager; Cheryl Gunderson, Business Manager, Mike Payne, Engineering Manager; Mike Robinson, Assistant Administrator; Barbara Bower, Secretary to the General Manager; and, Robin Katz, Customer Service Supervisor. Others present were: Mr. Brian Johnson, representing AW Associates; and Mr. John Love, representing Texaco. INTRODUCTION OF NEW EMPLOYEE Item 1. Introduction of new employee, Robin Katz, Customer Service Supervisor. Cheryl Gunderson introduced Ms. Robin Katz who is the District's new Customer Service Supervisor. The Board welcomed Ms. Katz to the District. CONSENT CALENDAR Prior to voting on the Consent Calendar, the Board noted a correction to Item No. 20 in the Draft Minutes changing the date from January 6 to February 6; discussed the easement requirements in Item 6; removed Item 13 for separate discussion; and, continued Item 14 because the property was sold after the agenda report was prepared. On a motion by Director Fox and seconded by Director Scanlin the Board of Directors voted 5-0 to approve the Consent Calendar as follows: Item 2. Approval of Minutes - Regular meeting of January 24, 1991, as corrected. Item 3. Authorization for the Directors to leave the State of California prior to next meeting. Item 4. Approval to release a cash bond in the amount of $2,000.00 with the Church of Christ for Water Improvements for their project located at 4382 Eureka Avenue. Item 5. Approval of the Terms and Conditions for Water and Sewer Service with Edward Hoke Company for their project located at 17662 Yorba Linda Boulevard. Item 6. Approval to release the Guarantee Bond with Via Del Rio Joint Venture in the amount of $1,500.00 for the Water Improvements for Lot No. 3 of Tract 11662. ,Z9 U Page_ February 14, 1991 Item 7. Approval to release the Guarantee Bond with Lyon-Warmington Associates, in the amount of $6,000.00 for the Water Improvements for Tract No. 9813. Item 8. Approval to release the Guarantee Bonds with The Baldwin Company, totalling $17,500.00 for the Water Improvements for their Tracts 10286, 10741, 11966 and 11968. Item 9. Approval of Progress Payment No. 1 in the amount of $7,456.50 to Pacific States Engineering Company for relocation of Water Facilities in Lakeview Avenue; authorize the filing of the Notice of Completion; and approve the payment of the 10% Retention totalling $828.50, 35 days after the Notice of Completion has been recorded, if no liens have been filed. Item 10. Approval of Progress Payment No. 1 to BFI Constructors, in the amount of $167,805.00, for construction of the Elk Mountain Reservoir, Job. No 8918. Item 11. Approval of the Terms and Conditions for Water and Sewer Service with Buena Vida Associates for their project on Eureka Avenue, south of Yorba Linda Boulevard, Job No. 9053. Item 12. Approval of payment to The Baldwin Company in the amount of $220,576.39 for the reimbursement of construction costs for the Timber Ridge Booster Station, Job No. 8427. Item 14. Continued to a later date because the property was sold after the agenda report was prepared. Item 14.a Approval of contract with John T. Malloy and John T. Malloy, Inc. in the amount of $37,450.00 for construction of water facilities along Richfield Road from Yorba Linda Boulevard to Kennon Drive and authorization for President and Secretary to execute contract, subject to review and approval as to form by the District's legal counsel; and, release the other bid bonds once the contract with John T. Malloy and John T. Malloy, Inc. has been signed. Item removed from Consent Calendar: Item 13. Approval of the Terms and Conditions for Water and Sewer Service with Texaco Incorporated, for their project located near Richfield Road and Orchard Drive, Job No. 9034. Mr. John Love addressed the Board to request relief from the requirement to construct sewer improvements identified in the Terms and Conditions. Mr. Love reported the existing sewer pipe in Aqueduct Drive is not an active line and Texaco has no plans to use the sewer facilities required by the District. Mr. Payne, Engineering Manager, reported it is normal practice to require developers to install facilities when they also complete road improvements. This policy reduces installation costs at a later date. Following lengthy discussion, the Board noted the sewer line in Page° February 14, 1991 Aqueduct Drive is not active, extending an inactive line does not benefit the District at this time, and Texaco will agree to fund improvements at a later date. On a motion by Vice President Armstrong and seconded by President Knauft the Board of Directors voted 5-0 to eliminate reference to sewer improvements and approve the Terms and Conditions for Water Service with Texaco Incorporated for their project located near Richfield Road and Orchard Drive, Job No. 9034. DISCUSSION CALENDAR. The following item was taken out of sequence to accommodate the public hearings scheduled for 9:00 a.m. Item 17. Consideration of expansion of the Elk Mountain Reservoir. Michael Payne, Engineering Manager reported that an opportunity exists to expand the 4.2 million gallon Elk Mountain Reservoir at a very reasonable cost. Mr. Payne reviewed the project and alternatives identified in the staff report. Mr. Payne concluded that Alternative No. 3, a 1.8 million gallon expansion, was the most efficient use of the site at the lowest overall cost. Mr. Payne then reported the Elk Mountain Booster Pump Station may take up to seven months to complete, therefore, it may not be fully operational by the first planned occupancy. Given the potential timing concerns, Mr. Payne recommended further revision to Amendment No. 2 of the 1989 Water Service Agreement to provide: 1) for construction of an interim, electric powered, booster pump station in the event the permanent Booster Pump station is not finished by the first occupancy; 2) that the developer shall be solely responsible for construction and maintenance of the interim pump station; 3) for occupancy of up to 30 residential units using interim facilities so long as the permanent facility is under construction and nearing completion. Mr. Arthur G. Kidman, District legal counsel, made a detailed report on change orders substantially changing the scope of the project and the competitive bid process. Mr. Kidman reported the District's policy to solicit competitive bids is a sound public policy but not required by State law. In addition, due to the fact that the price per gallon for the expansion project is substantially below the original bid price per gallon, the Board should make a finding that it is in the best public interest to waive the competitive bidding procedures in this instance and negotiate a change order. Following a general discussion on the matter, and on a motion by Director Korn and seconded by Director Fox the Board of Directors voted 5-0 to find and declare that it will be in the best public interest and the best interest of the District to proceed with the Elk Mountain Reservoir Expansion as recommended in Alternative No. 3 of the staff report. The Board determines that the District's policy to follow competitive bidding procedure for construction projects may be modified in this instance because: 1. The circumstances justifying the reservoir expansion arose after the award of the Elk Mountain Reservoir project. °~C[ 7 Page February 14, 1991 2. The Elk Mountain Reservoir project has been awarded and work commenced. The District, therefore, may be subject to substantial additional cost to cancel the current contract in order to accommodate rebidding of the expanded reservoir. 3. The negotiated price for the proposed change order is fair and reasonable, and is substantially less than a separate Reservoir addition at a later date. The economy of the expansion versus addition has been cross checked on a cost per gallon basis and is found to be fair and reasonable, based upon this District's past experience in construction of reservoirs involving this type of construction. PUBLIC HEARING CALENDAR Item 15. Annual Review and Consideration of the Board of Director's Compensation. President Knauft opened the public hearing at 9:17 a.m. William Robertson, Secretary, provided proof of publication and reported that no correspondence and/or petitions were received from the public on this matter. Mr. Robertson opened the public testimony by reporting that the Board of Directors reviewed their compensation at the January 10, 1991 Board meeting, and directed staff and legal counsel to draft an Ordinance for later action by the Board. Mr. Robertson also testified that Ordinance 91-01 reflects a new compensation rate of $125 per day 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 member; and, Ordinance 91-01 does not provide for automatic annual increases. This concluded staff testimony. There was no testimony from public. There was a general discussion on the draft Ordinance and the Board noted current law allows a compensation rate of $142 per meeting instead of the $125 set forth in Ordinance 91-01. On a motion by Director Fox and seconded by Director Scanlin the Board of Directors voted 5-0 to adopt Ordinance No. 91-01 Setting Compensation for Members of the Board of Directors. Item 16. Consideration of the Board of Directors Rules for Organization and Procedure. President Knauft opened the public hearing at 9:24 a.m. William Robertson, Secretary, provided proof of publication and reported that no correspondence and/or petitions were received from the public on this matter. Mr. Robertson opened public testimony with a report on the history of Ordinance No. 1, changes over the draft Rules adopted on December 27, 1990 and additional changes reviewed with the Special Committee. Mr. Robertson testified that due to the extent of changes from the Rules adopted on December 27, 1990 it is recommended the Board rescind the previous draft and adopt the latest Rules in the agenda report. Director Korn noted he has been working on revision of Board Rules since 1975 and was glad to see adoption of new Rules. Legal counsel reviewed the Rules and they are acceptable to him. On a motion by Director Korn and seconded by Vice President Armstrong the Board of Directors voted 5-0 to approve second reading of Ordinance No. 90-03 to Repeal Ordinance No. 1, 2 and 7, Concerning Organization, Procedures and Meeting Dates. On a motion by Director Korn and seconded by Vice President s Page2W - February 14, 1991 Armstrong the Board of Directors voted 5-0 to adopt Resolution No. 91-04 to Rescind Resolution No. 90-42 and Adopting Board of Directors Rules for Organization and Procedure. President Knauft declared a seven minute recess at this point in the meeting. DISCUSSION CALENDAR (continuedl Item 18. Consideration of authorization for the Construction Bidding Phase of the Camino De Bryant Reservoir Project. Michael Payne, Engineering Manager reported the Camino De Bryant Reservoir project is nearly ready for the formal bidding process. Following a general discussion on the time required for bidding and construction, and on a motion by Director Korn and seconded by Director Fox the Board of Directors voted 5-0 to authorize the staff to proceed with the construction bidding phase of the Zone 5 Camino De Bryant Reservoir, upon completion of the Plans and Specifications, Job. No. 8935. Item 19. Consideration of relocating a portion of an existing 8" water main and 8" sewer main in Prospect Avenue, south of Imperial Highway. Michael Payne, Engineering Manager, reported City of Yorba Linda is working on storm drain improvements that conflict with District facilities. Mr. Payne reviewed the staff report, alternatives and noted the District's position on the prior rights issue. Mr. Arthur G. Kidman, District legal counsel, made a detailed report on the District's prior rights claim. Following a general discussion on the prior rights issue, City Redevelopment Agency financing for the relocation, staff's recommendation to retain BSI to prepare plans and potential negotiating position, and on a motion by Director Fox and seconded by President Knauft the Board of Directors voted 5-0 to authorize Legal Counsel to pursue the Prior Rights Issue and to authorize the staff to enter into an agreement with BSI Consultants, Inc., in the amount of $2,400.00, for the design of the sewer main relocation in Prospect Avenue, should the issue of Prior Rights be decided in favor of the City of Yorba Linda. Item 20. Report on the Financial Statements for the six months ended December 31, 1990. Cheryl Gunderson, Business Manager, reviewed the financial statements for the period ending December 31, 1990. Following a general discussion regarding earnings and net worth, and on a motion by Vice President Armstrong and seconded by Director Scanlin the Board of Directors voted 5-0 to approve the Financial Statements for the six months ended December 31, 1990. Item 21. Consideration of Personnel authorized to sign checks and transfer District funds. Cheryl Gunderson, Business Manager, reported the plates used in the check signing machine need to be changed to add Mr. Knauft as the Board President and Ms. Gunderson as the District's Auditor, and remove Mr. Robertson as he is no longer the Auditor. Following a general discussion on the proposed change and cost of a new plate, and on a motion by Director Fox and seconded by Director Korn the Board C b e! Page February 14, 1991 of Directors voted 5-0 to adopt Resolution No. 91-05 designating Personnel to sign checks and transfer District funds. Item 22. Consideration of Policy for Improvement District No. 2, Series "B" Bond Release of Lien. William Robertson, General Manager, requested approval to sign the Release of Lien forms in Improvement District No. 2. Granting such authority to the General Manager reduces staff costs and expedites processing each request. Mr. Robertson reported the staff will continue to validate each request before the Release is signed. The Board expressed concern the requesting party may not file the Release after approval by the District, therefore, staff was instructed to collect the County Recorder fee and return the documents to the County Recorder. On a motion by Director Fox and seconded by President Knauft the Board of Directors voted 5-0 to adopt Resolution No. 91-06 Authorizing General Manager to Terminate and Cancel Improvement District No. 2 Lien Rights. Item 23. Consideration of recruitment services to fill Assistant General Manager position. William Robertson, General Manager, reported the Assistant General Manager remains unfilled. In order to provide consulting services to evaluate the position requirements, compensation package and limited recruitments services a proposal was solicited from Ralph Anderson and Associates. On a motion by Vice President Armstrong and seconded by Director Fox the Board of Directors voted 5-0 to authorize the General Manager to execute an agreement with Ralph Anderson and Associates in the amount of $6,000.00. GENERAL MANAGER'S REPORT Item 24. General Manager's oral report and comments. Mr. Robertson reported on the following: 1. Meeting on Friday morning, sponsored by MWDOC, at Saddleback Inn regarding the drought. Director Scanlin reported he will attend the meeting; 2. Request by OCWD for Liaison Committee meeting with two members of the Board. Following a general discussion, the Board wanted the entire Board to attend meeting scheduled for Thursday morning, March 7, 1991 at 8:30 a.m. at the District office; 3. Telephone conversation with Mr. John Taylor at the Nixon Library regarding their Library fountain; 4. Presentation to the Yorba Linda City Council on Tuesday, February 19th; and, 5. Letter to all customers regarding drought. Mr. Robertson, updated the Board on the current water supply conditions across the State. Given the new information, the Board advised staff to take a much stronger position on the drought, revise the letter accordingly, and have the Public Information Committee review the letter prior to mailing to all customers. Page February 14, 1991 LEGAL COUNSEL'S REPORT Item 25. Legal Counsel's oral report and comments. Mr. Kidman requested a closed session to discuss potential litigation and reported on the Department of Fish and Game new fee structure being levied for CEQA compliance. President Knauft declared an eight minute recess at this point in the meeting. STANDING COMMITTEE REPORT Item 26. There was no Executive-Administrative-Organizational Committee meeting report. Item 27. There was no Finance-Accounting Committee meeting report. Item 28. Authorization for Payment of Bills. On a motion by Vice President Armstrong and seconded by Director Scanlin the Board of Directors voted 5-0 to approve payment of bills, payroll and refunds in the amount of $853,044.63 on Check Nos. 6713, 6714, 6790, 7398 through 7498; and Payroll Check Nos. 5699 through 6456; and one wire to MWDOC in the amount of $210,232.34 dated February 14, 1991. Item 29. Report on Personnel Committee meeting of January 28 and 30, 1991. The Committee reported that the Assistant General Manager recruitment process was discussed at the January 28 and 30, 1991 Committee meetings. Item 30. Report on Planning-Engineering-Operations Committee meeting of January 28, 1991. The Committee reported that the Elk Mountain Reservoir project, Camino De Bryant Reservoir bidding schedule, Declaration of Restrictive Covenants, Buena Vida project and Timber Ridge Booster Station were discussed at the January 28, 1991 Committee meeting. Item 31. Report on Public Information Committee meeting of February 6, 1991. The Committee reported that a variety of activities related to implementation of the District's Urban Water Management Plan were discussed at the February 6, 1991 Committee meeting. SPECIAL COMMITTEE REPORT Item 32. Report on Special Committee meetings of January 24 and February 5, 1991. The Special Committee reported that drafts of the Board Rules for Organization and Procedure were discussed at the Committee meetings. INTERGOVERNMENTAL MEETINGS Item 33. Report on ISDOC meeting, January 31, 1991. No report. Item 34. Report on WACO meeting, February 1, 1991. President Knauft reported the drought was discussed at the WACO meeting. Page 'I February 14, 1991 Item 35. Report on City Council meeting, February 5, 1991. Director Korn reported the City Council had a lengthy discussion on the new State mandated trash collection program and the City is using public bonds to finance the trash collection equipment. Item 36. Report on MWDOC meeting, February 6, 1991. President Knauft reported he was reappointed as MWD Director and has submitted a letter of resignation from MWD's Board effective in two years. Vice President Armstrong departed at this point in the meeting. Item 37. Report on OCWD meeting, February 6, 1991. Director Fox reported the staff should follow-up with MWD as they may assist with funding for District wells in Improvement District No. 2. Item 38. Report on CSDA meeting, February 8, 1991. Director Korn reported the meeting was canceled due to weather conditions at the meeting site. Item 39. Report on ACWA Seminar, February 8, 1991. Director Fox reported the Director seminar was very well done and informative. Among the topics were the Board setting policy, staff implementing policy and Board monitoring to be sure policy is working satisfactorily; and, the Conflict of Interest rules. Item 40. Report on Planning Commission meeting, February 13, 1991. Director Scanlin reported the Planning Commission discussed terms and conditions for construction of the temporary reservoir near the permanent Camino De Bryant reservoir. BOARD MEMBER COMMENTS Item 41. Director Fox: Director Fox had no comments. Item 42. Director Korn: Director Korn had no comments. Item 43. Director Scanlin: Director Scanlin had no comments. Item 44. Vice President Armstrong: Vice President Armstrong was absent Item 45. President Knauft: President Knauft had no comments. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board of Directors reviewed the activity calendar and made assignments for the period through the February 28th Board meeting. Page February 14, 1991 I CLOSED SESSION On a motion by Director Fox and seconded by Director Korn the Board of Directors voted 4-0 to go into closed session at 11:27 a.m. with legal counsel and the Engineering Manager to discuss pending litigation. On a motion by Director Fox and seconded by Director Scanlin the Board of Directors voted 4-0 to return to open session at 11:34 a.m. and reported they took action in closed session to instruct legal counsel regarding settlement of pending litigation. ADJOURNMENT On a motion by Director Fox and seconded by Director Korn the Board of Directors voted 4-0 at 11:35 a.m. to adjourn the meeting to Thursday, February 28, 1991 at 8:30 a.m. at the District Boardroom. Wiliam J. Robertson General Manager/Secretary