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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. Page 494. 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. Page 2AW 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 XI c~ Page 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 Page,"~. 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. Page 2055 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, Page -1 -1,56 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. al 7 Page 2057- 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