HomeMy WebLinkAbout1990-02-08 - Board of Directors Meeting MinutesPage & 'a
February 8, 1990
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
February 8, 1990
The regular meeting of the Board of Directors of the Yorba Linda Water District was called
to order by Arthur Korn, President, at 8:30 a.m., February 8, 1990, in the Orange County
Fire Department Station 10 at 18422 Lemon, Yorba Linda CA. Directors present were:
Whit Cromwell, Sterling Fox, Roy Knauft and President Korn. Director Armstrong was
absent. Also present were: Arthur Kidman, Legal Counsel; William P. Workman, General
Manager; William Robertson, Assistant General Manager; Robb Quincey, Executive
Assistant to the General Manager; Mike Payne, Engineering Manager; Cheryl Gunderson,
Business Manager; Mike Robinson, Assistant Administrator; Ray Harsma, Operations
Superintendent; Barbara Bower, Secretary; Fritz Stradling, Bond Counsel; Joe Nocella,
Bond Consultant; Janet Morningstar, Attorney; and Ken Maddeck, Brighton Homes.
INTRODUCTION OF VISITORS AND PUBLIC PARTICIPATION
Mr. Ken Maddeck of Brighton Homes addressed the Board with respect to the proposed
Brighton Homes Annexation to the District. Mr. Maddeck expressed a desire to have a
two-party agreement with the District, service to all lots identified in the annexation, and
District consideration of a fee waiver on some off-site construction costs. Mr. Maddeck
updated the Board with respect to Brighton's position regarding the extension of
Bastanchury Road.
CONSENT CALENDAR
After a discussion regarding the terms and conditions for sanitary sewer service with Mr. &
Mrs. Livingston, Mr. & Mrs. Warren and Mr. Blanton; the Updated District Vehicle and
Equipment Replacement Program; and bid comparisons for design and construction
management of the District's Zone 5 Reservoir, on a motion by Director Cromwell and
seconded by Director Fox, the Board of Directors voted 4-0 to approve the Consent
Calendar as follows:
Item 1. Approval of Minutes - Regular meeting of January 25, 1990, Adjourned meeting
of January 26, 1990, and Adjourned meeting of January 31, 1990.
Item 2. Authorization for the Directors to leave the State of California prior to next
meeting.
Item 3. Approval of the Terms and Conditions for Water Service with Woodcrest
Development of Orange County Inc. (WDI/Brighton Account)J for their project located
northeast of Kodiac Mountain Drive and Camino De Bryant, Tract No. 14030, Job No.
8947.
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February 8, 1990
Item 4. Approval of the Terms and Conditions for Water Service with Woodcrest
Development of Orange County Inc. (WDI/Brighton Account) for their project located
northwest of Paseo De Toronto and Camino De Bryant, Tract No. 14032, Job No. 8948.
Item 5. Approval of the Terms and Conditions for Water Service with Woodcrest
Development of Orange County Inc. (WDI/Brighton Account) for their project located north
of Paseo De Toronto and Camino De Bryant, Tract No. 14033, Job No. 8949.
Item 6. Approval of the Terms and Conditions for Water Service with Woodcrest
Development of Orange County Inc., a California Corporation for their project located at
the northeast corner of Camino De Bryant and Kodiac Mountain Drive, Tract No. 14029,
Job No. 8944.
Item 7. Approval of the Terms and Conditions for Water Service with Woodcrest
Development or Orange County, Inc., a California Corporation for their project located at
the northeast corner of Camino De Bryant and Kodiac Mountain Drive, Tract No. 14031,
Job No. 8945
Item 8. Approval of the Terms and Conditions for Water Service with Woodcrest
Development of Orange County Inc., a California Corporation for their project located at
the northeast corner of Camino De Bryant and Kodiac Mountain Drive, Tract No. 13231,
Job No. 8946.
Item 9. Approval of the Terms and Conditions for Water Service with Mr. and Mrs.
Howard Livingston, Mr. and Mrs. Herbert Warren and Mr. Albert Blanton for their project
located in Eureka Avenue, south of Tract No. 13847, Job No. 8967.
Item 10. Approval of payments to the Baldwin Company for reimbursement of the
construction cost of water transmission facilities for Tract No. 11452 in the amount of
$81,710.00; Tract 11455 in the amount of $54, 918.00; tract No. 11485 in the amount of
$60,525.00; and Tract 11967 in the amount of $22,790.00.
Item 11. Approval of payments to Warmington Homes for the reimbursement of the
construction cost of water transmission facilities for Tract 10011 in the amount of
$53,684.00; and Tract 10287 in the amount of $10,750.00
Item 12. Approval of an agreement with ASL Consulting Engineers to provide design
engineering services for the Zone 5 Reservoir in the amount of $68,800.00; and authorize
the President and Secretary to execute the agreement.
Item 13. Approval of the modification of No. 38 of the Terms and Conditions for Water
Service with Pacific Scene, Inc., Job No. 8828 and J.M. Peters company, Inc., Job No.
8829, for their project located northeast of Hidden Hills Road and Esperanza Road.
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February 8, 1990
Item 14. Approval of releasing Cash Bonds with A.W. Associates #3, totaling $20,000.00,
for their Tracts 11056, 11058, 11059, 11060, 11062, 11063, 11064, 11065 and 11066.
Item 15. Approval of the Updated District Vehicle and Equipment Replacement Program.
Item 16. Report on Southern California Edison Company-Energy Rates.
Item 17. Authorize settlement of claim filed by Mr. and Mrs. Baldwin in the amount of
$330.00.
PRESENTATION
Item 18. Presentation by Larry Kraemer, Director, Orange County Water District. Mr.
Kraemer was not present for this report.
DISCUSSION CALENDAR
Item 19. Update on Allen-McCulloch Pipeline Shutdown. Engineering Manager Mike
Payne explained that the Municipal Water District of Orange County (MWDOC) put the
Allen McColloch pipeline back in service on February 1, 1990 after completing a major
phase of the AMP Augmentation project. He further stated that the originally planned 9
day shutdown lasted 11 days due to construction problems that were encountered during
the project. Mr. Payne reviewed a variety of conditions that the District experienced during
the shutdown. After a general discussion by the Board, the report was accepted as an
informational item.
Item 20. Consideration of opposition to proposed FDIC Regulation to limit the insurance
coverage of Deferred Compensation Plan. Business Manager Cheryl Gunderson
explained that the Federal Deposit Insurance Corporation (FDIC) has drafted new
regulations which would severely limit the insurance coverage on deferred compensation
funds. She recommended that the District oppose the regulations because they would
negatively impact the employee's deferred compensation plan. After a brief discussion by
the Board, on a motion by Director Cromwell and seconded by Director Fox, the Board of
Directors voted 4-0 to oppose the proposed FDIC regulations limiting the insurance
coverage of deferred compensation plans and authorize the President to send letters to
Congress and the FDIC on this matter.
Item 21. Designation of personnel authorized to sign checks and transfer District funds.
Business Manager Cheryl Gunderson explained that each year the District's authorized
signers are changed when a new Board President is elected. As Arthur Korn was recently
elected President of the Board, his name along with the name of William Robertson, the
District's Auditor will appear on the signature stamp. Mrs. Gunderson concluded her
report by stating that the proposed Resolution also specifically identifies Cheryl
Gunderson, Business Manager and William Robertson, Auditor as authorized to wire
funds through the Federal wire system. The persons authorized to wire funds are After a
brief discussion by the Board, on a motion by Director Fox and seconded by Vice
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February 8, 1990
President Knauft, the Board of Directors voted 4-0 to adopt Resolution No. 90-3
designating Personnel to sign checks and transfer District funds.
Item 22. Report on financial statements for the six months ended December 31, 1989.
Business Manager Cheryl Gunderson explained that a thorough analysis of the expenses
for the first half of this fiscal year has been conducted and compared to the 1989-90
Budget. She stated that the District's expenses follow closely with the Budget estimates
with few exceptions. Mrs. Gunderson concluded her report by stating that the District's
total assets of $66,329,299 exceed Total Liabilities of $25,806,212 by the Fund Equity of
$40,523,087. After a general discussion concerning this item and the revenue changes in
the Rents, Royalties, Other Category of the Statement of Income from 1988 to 1989, on a
motion by vice President Knauft and seconded by Director Cromwell, the Board of
Directors voted 4-0 to accept the Financial Statements for the six months ended
December 31, 1989 as presented.
Item 23. Improvement District No. 2-Series C General Obligation Bond Sale. Assistant
General Manager William Robertson stated that on December 14, 1989 the Board
accepted the Financial Plan for Improvement District No. 2 (I.D.-2) and authorized staff,
legal counsel and bond consultants to proceed with issuance of Improvement District No.
2-Series "C" General Obligation Bonds in the amount of $6,000,000. Mr. Robertson
reviewed the important points incorporated in the I.D.-2 Financial Plan, and further
reviewed the process by which the Board will authorize the March 8, 1990 Bond Sale. He
explained that the 1989 Water Service Agreement included a provision that permits AW
Associates No. 3 to object, in writing, to the bond issuance. Mr. Robertson stated that AW
has issued a letter supporting the District's sale of the Series "C" bond issuance.
Mr. Joe Nocella of Seidler-Fitzgerald, the District's Bond Consultant briefly spoke with
regard to the proposed paying agent on the bonds that will be issued. Mr. Nocella
advised the Board that the Bank of American, Security Pacific Bank and the State Street
Bank bid on being the paying agent for the District's Bonds. Given that Bank of America
was the lowest bidder to administer the paying agent process, Seidler-Fitzgerald
recommended that Bank of America be the District's paying agent. He also noted that his
firm would fully discuss the payment date with Bank of America such that owners of bonds
will in fact be paid on the payment date that the bonds denote. Mr. Fritz Stradling, the
District's Bond Counsel addressed the Board with regard to local availability of the Bonds
to citizens. Mr. Stradling explained that bonds such as the District's will be selling,
typically are "pre-sold", thereby insuring that the District receive the highest rate of return.
By allocating a portion of the bonds to be sold only to local citizens, the overall rate of
return on the sale may be affected. After some discussion, a press release on the bond
issue was suggested.
Mr. Robertson concluded the presentation of this agenda item by stating that the District
has recently met with the City of Yorba Linda to discuss the District's Bond sale pursuant
to a District-City agreement. After a general discussion by the Board, on a motion by
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February 8, 1990
Director Fox and seconded by Director Cromwell, the Board voted 4-0 to to adopt the
following Resolutions authorizing issuance of Improvement District No. 2-Series "C"
General Obligation Bonds:
Resolution 90-04 RESOLUTION OF THE BOARD OF DIRECTORS OF THE
YORBA LINDA WATER DISTRICT DECLARING ITS
INTENTION TO SELL BONDS OF SAID DISTRICT FOR
IMPROVEMENT DISTRICT NO. 2 IN THE AMOUNT OF
$6,000,000, FIXING THE TIME AND PLACE FOR TAKING
BIDS AND DIRECTING PUBLICATION OF NOTICE INVITING
BIDS.
Resolution 90-05 THIRD SUPPLEMENTAL RESOLUTION AUTHORIZING THE
ISSUANCE OF $6,000,000 PRINCIPAL AMOUNT OF YORBA
LINDA WATER DISTRICT IMPROVEMENT DISTRICT NO. 2
WATER BONDS, SERIES C.
Resolution 90-06 RESOLUTION OF THE BOARD OF DIRECTORS OF THE
YORBA LINDA WATER DISTRICT APPROVING THE
PRELIMINARY OFFICIAL STATEMENT FOR THE
IMPROVEMENT DISTRICT NO. 2 1979 WATER BONDS,
SERIES C IN THE AMOUNT OF $6,000,000.
Resolution 90-07 RESOLUTION DETERMINING THAT THE ISSUANCE OF
NOT-TO-EXCEED $6,000,000 PRINCIPAL AMOUNT OF
YORBA LINDA WATER DISTRICT IMPROVEMENT DISTRICT
NO. 2 1979 WATER BONDS, SERIES C IS NOT SUBJECT
TO PRIOR INVESTIGATION, REPORT AND APPROVAL
PURSUANT TO THE DISTRICT'S SECURITIES
INVESTIGATION LAW OF 1965.
Item 24. Discussion of policies related to setting 1990 Water Rates. Assistant General
Manager William Robertson explained that one of the most important actions taken by
the Board of Directors during the course of the year is the setting of water rates. He
reviewed the current water rate structure, which was established in 1986. Mr. Robertson
reviewed with the Board the Water Fund Revenues and Expenditures, and financial
changes that have occurred since 1986 that have affected the Water Fund. Further, Mr.
Robertson reviewed the policy choices with regard to establishing water rates.
After a lengthy discussion by the Board with regard to water rates, the Board of Directors
asked to continue this item to the next Board meeting so as to further evaluate and
discuss the water rate issue.
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February 8, 1990
Item 25. Consideration of designs for District Headquarters Building. Assistant
Administrator Mike Robinson reviewed three alternative Headquarters sign designs that
have been developed for the Board's consideration. He stated that the Public
Information Committee has expressed a preference for design "A". It was their feeling
that it would be most resistant to vandalism, easiest to maintain and reflective of the
District's image. After a brief discussion by the Board, on a motion by Director Fox and
seconded by Director Cromwell, the Board of Directors voted 4-0 to select design "A" for
the District Headquarters sign.
GENERAL MANAGER'S REPORT
Item 26. No General Manager's report scheduled. However, General Manager William
Workman advised the Board that the City of Yorba Linda's Sewer Maintenance Bid
Specifications had been issued. An adjourned meeting of the Board would be required
for the Board to act on a proposal to the City. After a brief discussion, it was determined
by the Board that Tuesday, February 20, 1990 at 3:00 p.m would be the adjourned
meeting date.
Mr. Workman also advised the Board that the City of Yorba Linda has been invited to
address the Board at their February 21, 1990 meeting concerning the City's
redevelopment plans. He reminded the Board of their upcoming Goals Workshop
scheduled for February 21, 1990 at 2:00 p.m., and provided a brief update concerning
the headquarters building renovation.
LEGAL COUNSEL'S REPORT
Item 27. No Legal Counsel's report scheduled. Art Kidman however complimented the
staff on their public relations efforts during the recent AMP shutdown. He stated that
legal problems often occur as a result of weak public relations with respect to certain
issues.
STANDING COMMITTEE REPORTS
Item 28. No Executive-Administrative-Organizational Committee meeting, report
scheduled.
Item 29. Report on Finance-Accounting Committee meeting of January 30, 1990.
President Korn reported that the items for discussion at this meeting included the G.O.
Bonds Paying Agent, December 31, 1989 Financial Statements, FDIC Insurance on
deferred compensation funds, check signing authorization change, AMP shutdown, and
the 1990 water rate study.
Item 30. Authorization for Payment of Bills. On a motion by Vice President Knauft and
seconded by Director Fox, the Board of Directors voted 4-0 to approve payment of bills
and rate deposits in the amount of $763,619.36 on Check Nos. 19262 through 19384,
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February 8, 1990
and Payroll Check Nos. 4569 through 4625, and two wires dated January 29, 1990 to
ACWA in the amount of $14,223.75 and February 13, 1990 to MWDOC in the amount of
$170,657.48.
Item 31. Report on Personnel Committee meeting of January 22, 1990. Director Fox
reported that an employee injury, and the General Manager's evaluation were the two
main issues of discussion at this meeting.
Item 32. Consideration of Compensation Adjustment for the District's General
Manager. On a motion by Director Fox and seconded by Vice President Knauft, the
Board of Directors voted 4-0 to adopt Resolution 90-08 adjusting compensation for the
General Manager.
Item 33. No Planning-Engineering-Operations Committee meeting scheduled.
Item 34. Report on Public Information Committee meeting of January 22, 1990.
Director Fox reported that the imported water shutdown, waterlines newsletter, 30th
anniversary and open house, group tours, District facility tours, Xeriscape Committee
activities, water quality report, headquarters building sign, well protection program,
water awareness month and the District's Annual Report were the items for discussion
at this meeting.
INTERGOVERNMENTAL MEETINGS
Item 35. Report on WACO meeting of February 2, 1990. Director Knauft reported that
nothing of direct significance to the District was discussed at this meeting.
Item 36. Report on City Council meeting of February 6, 1990. Director Cromwell
reported that the majority of this meeting concerned a newly proposed City fee program,
the naming of new City parks, and discussions regarding a new City Civic Center.
Item 37. Report on MWDOC meeting of February 7, 1990. Director Knauft reported that
nothing of significance to the District was discussed at this meeting.
Item 38. Report on OCWD meeting of February 7, 1990. Director Fox reported that the
major issues of discussion at this meeting concerned the findings of the Santa Ana
Regional Water Quality Board with regard to dairies, and the Orange County Water
District's Annual Budget.
BOARD MEMBER COMMENTS
Item 39. Director Armstrong: Director Armstrong was absent.
Item 40. Director Cromwell: Director Cromwell expressed his appreciation to the staff
for their public relations work during the recent AMP shutdown.
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February 8, 1990
Item 41. Director Fox: Director Fox had no comments.
Item 42. Vice President Knauft: Vice President Knauft expressed his appreciation to the
staff for their efforts on the 1990 Water Rate Study.
Item 43. President Korn: President Korn also expressed his appreciation to the staff for
their continued efforts on the 1990 Water Rate Study.
ADJOURNMENT
On a motion by Vice President Knauft and seconded by Director Fox, the Board of
Directors adjourned their meeting to February 20, 1990 at 3:00 p.m. in the Orange
County Fire Department Station 10 in Yorba Linda.
William P. Workman
General Manager/S