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HomeMy WebLinkAbout1990-03-08 - Board of Directors Meeting MinutesPages March 8, 1990 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING March 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., March 8, 1990, in the District offices at 4622 Plumosa, Yorba Linda. Directors present were: Paul Armstrong, Whit Cromwell, Sterling Fox, Roy Knauft and President Korn. Also present were: 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; Brian Johnson of A.W. Associates; and Ken Maddeck of Brighton Homes. CONSENT CALENDAR On a motion by Director Fox and seconded by Director Armstrong, the Board of Directors voted 5-0 to approve the Consent Calendar as follows: Item 1. Approval of Minutes - Adjourned meeting of February 20, 1990, and Regular meeting of February 22, 1990. Item 2. Authorization for the Directors to leave the State of California prior to next meeting. Item 3. Approval of final Progress Payment No. 16 to F.T. Ziebarth Company, Inc. for construction of the Santiago Reservoir in the amount of $15,880.50; authorization for staff to file a Notice of Completion; authorization to release the Labor and Materials Bond and payment of the 10% retention totaling $101,830.70 35 days after the Notice of Completion has been recorded if no liens have been filed; and release the Faithful Performance Bond in one year if no defects have been found. Item 4. Approval of contract with Changing Times Enterprises, Inc., in the amount of $83,300.00 for the construction of the Zone 4 to 3 Pressure Reducing Station; and approve the transfer of $9,600.00 from the Fairmont Boulevard pipeline project to the Pressure Reducing Station project. Item 5. Approval of Progress Payment No. 4 to J.H. Rives Co., in the amount of $20,102.00. PRESENTATION Item 6. Presentation by Larry Kraemer, Director, Orange County Water District. Mr. Kraemer was not present for this report. Q `7 Page March 8, 1990 DISCUSSION CALENDAR Item 7. Report on the proposed Bryant Ranch Water Well. Engineering Manager Mike Payne explained that pursuant to the 1989 Water Service Agreement, AW Associates is required to install a water well with a minimum capacity of 1,000 gallon per minute on a site acceptable to the District. He further explained that over the past several months, AW has been working with the Orange County Flood Control District (OCFCD) on an agreement for transfer of land and construction of the water well facilities. Mr. Payne stated that after having recently received a copy of the proposed agreement between the OCFCD and AW Associates, the staff is concerned with the following issues: a 1,100 gallon per minute cap on the well's capacity, time and method of conveyance, construction of easement facilities, quitclaim by AW to District, special covenant of AW, and the Orange County Water District annexation requirement. He stated that the proposed agreement is scheduled for consideration by the Orange County Board of Supervisor's at their meeting of March 20, 1990. Both Legal Counsel Art Kidman and Bryan Johnson of AW Associates addressed the Board with regard to this item. Mr. Kidman stated that he was concerned that the proposed agreement between the County and AW Associates may restrict the District's production potential on the Eastside well; and furthermore, may be in direct contradiction to the 1989 Water Service Agreement. Mr. Johnson stated that the District has been fully aware of the proposed well site area, and the specifications of the well and should not therefore be overly concerned with the 1100 gpm restriction that was proposed. Mr. Johnson further stated that AW Associates does not believe that the proposed agreement is in conflict with the 1989 Water Service Agreement. The Board of Directors discussed this item at length, specifically with regard to the terms of the proposed agreement between the OCFCD and AW, and the proposed well specifications. Additionally, the Board discussed the potentialities of pumping more water than the proposed agreement allows for, and the possibilities of alternative well sites in the Easterly portions of the District. The Board requested that the District staff continue to meet with AW Associates to work out the areas of concern that exist as a result of the proposed OCFCD-AW Associates agreement, and requested that AW Associates endeavor to have this item continued for consideration from the March 20, 1990 Orange County Board of Supervisor's Agenda to a future date. They further requested to be kept fully apprised of this situation, so that in the event that either one of the aforementioned factors cannot be achieved, a meeting between members of the Board of Directors and staff, and members of the Orange County Board of Supervisor's could be scheduled to address this issue. Item 8. Consideration of Automobile Club of Southern California Radio Transmitter Site Lease. Robb Quincey, Executive Assistant to the General Manager advised the Board that the District was approached by the Automobile Club of Southern California concerning their interest in leasing a small space at the District's Fairmont Reservoir Page _ 1 March 8, 1990 site to install two-way radio equipment and antenna for their Emergency Road Side Service. Mr. Quincey further stated that the Automobile Club has tested the equipment at the Fairmont Reservoir site, and it has been determined that it will work adequately and will not interfere with District operations in anyway. He advised the Board that the proposed lease would be for a period of five years, and it would be in the amount of $125.00 per month with an annual CPI adjustment. After a general discussion by the Board with regard to the proposed lease as compared to an existing lease with the City of Yorba Linda for similar space, on a motion by Director Knauft and seconded by Director Cromwell, the Board of Directors voted 5-0 to approve a five year lease with the Automobile Club of Southern California for space to operate a radio station at the District's Fairmont Reservoir site; and authorize the President and Secretary to execute the agreement. Item 9. Report on Allen-McColloch Pipeline - Flow Augmentation Project. Assistant General Manager William Robertson explained to the Board that the Metropolitan Water District of Southern California (MWD) has requested that the Allen McColloch Pipeline (AMP) participants postpone construction of a proposed booster pump station during negotiations between MWD and the Metropolitan Water District of Orange County (MWDOC) concerning the sale of the AMP facility. He further stated that the AMP participants generally concurred with the request for delay at their meeting of February 21, 1990. Mr. Robertson explained that MWDOC has requested that each AMP participant review, and if acceptable, approve a short letter agreement concurring with the delayed construction of the proposed booster pump station. After a brief discussion by the Board concerning this issue, on a motion by Director Knauft and seconded by Director Cromwell, the Board of Directors voted 5-0 to authorize the General Manager to sign a letter consenting to delay construction of the AMP Booster Pump Station. Item 10. Consideration of dedication ceremonies of Chino Hills and Santiago Reservoirs. Assistant Administrator Mike Robinson explained that the Chino Hills and Santiago Reservoirs are now complete and ready for operation. He stated that dedication ceremonies would be appropriate at this time, and reviewed several options with respect to the dedication ceremonies. Mr. Robinson explained that the dedications could be held on the same date at different times, or two separate dedication ceremonies could be held on separate dates. After a brief discussion, the Board of Directors requested that staff prepare to have one joint dedication ceremony for the two sites on March 30, 1990 at 2:00 p.m. The joint ceremony will be held at the Santiago Reservoir site. Item 11. Improvement District No. 2 - Series "C" General Obligation Bond Sale. Assistant General Manager William Robertson explained that on February 8, 1990 the Board of Directors authorized staff, legal counsel and bond consultants to solicit bids for Improvement District No. 2 (I.D.-2), Series "C" General Obligation Bonds. He reviewed a series of important points pertaining to issuance of the bonds, and stated <1 -1 `7 Page-2- March 8, 1990 that the bid opening is scheduled for 9:00 a.m. on Thursday, March 8, 1990 at the offices of Seidler-Fitzgerald Public Finance in Los Angeles. Mr. Robertson explained that given that the bid opening is away from the District' office, representatives of Seidler-Fitzgerald will supervise the actual bid opening process, calculate the lowest bidder, review the bidder's security, notify bond counsel of the final calculations and travel to the District's office to inform the Board of the bid result while the District's bond counsel transmits a facsimile of the completed Resolution for Board Consideration. Mr. Joe Nocella of Seidler-Fitzgerald arrived at the Board meeting to advise the Board that 4 bids were received for the District's bonds. He stated that Smith Barney was the lowest bidder offering a net interest rate of 7.197% on the bonds. He stated that Seidler-Fitzgerald was pleased with the outcome of the bond offering, and recommended that the Board accept the Smith Barney bid, and reject the other bids and return their respective bid bonds. After a general discussion by the Board with respect to the bond offering, on a motion by Director Armstrong and seconded by Director Fox, the Board of Directors voted 5-0 to adopt Resolution 90-10, Resolution of the Board of Directors of the Yorba Linda Water District awarding the principal amount of $6,000.000 of Improvement District No. 2 1979 Water Bonds, Series "C" to the best bidder. GENERAL MANAGER'S REPORT Item 12. General Manager William Workman advised the Board that the District has recently recieved a letter from Brighton Homes and the North Orange County Community College District (NOCCCD) requesting that two separate two party annexation agreements be developed; one agreement between Brighton Homes and the District and the second between the North Orange County Community College District and the District. He stated that Mr. Ken Maddeck of Brighton Homes was present to discuss this issue with the Board. Mr. Maddeck stated that he had met with the NOCCCD on the previous evening, and the two separate two party annexation agreements appeared necessary. Mr. Maddeck also requested therefore, that the Board authorize General Counsel Art Kidman to prepare the agreement between Brighton Homes and the District at this time, at the expense of Brighton. He concluded by requesting that the Board consider some partial waiver or reduction in the future annexation fees and charges that Brighton Homes will incur with the District. Mr. Workman concluded this annexation discussion by stating that both Director Knauft and himself attended a reception for the new Chancellor at the NOCCCD the previous evening. He stated that he was met by a number of college officials who were very interested in the annexation issue. Mr. Workman also advised that Board that the City of Yorba Linda awarded their Sewer Maintenance Contract to Empire Pipe Cleaning & Equipment, Inc. of Anaheim at their March 7, 1990 meeting. He advised the Board of a potential citizen complaint concerning the District's Water Reconnection fee, and stated that a closed session of the Board is necessary to discuss legal and personnel matters. Page-- ' March 8, 1990 LEGAL COUNSEL'S REPORT Item 13. No Legal Counsel's report scheduled. STANDING COMMITTEE REPORTS Item 14. Oral Report on Executive-Administrative-Organizational Committee meeting of March 5, 1990. President Korn reported that the results of the District's Annual Employee Survey was discussed at this meeting. Item 15. No Finance-Accounting Committee meeting scheduled. Item 16. Authorization for Payment of Bills. On a motion by Vice President Knauft and seconded by Director Armstrong, the Board of Directors voted 5-0 to approve payment of bills and rate deposits in the amount of $440,574.36 on Check Nos. 19510, and Payroll Check Nos. 4746 through 4802 and one wire dated March 13, 1990 to MWDOC in the amount of $104,029.01. Item 17. No Personnel Committee meeting scheduled Item 18. Report on Planning-Engineering-Operations Committee meeting of March 1, 1990. Director Armstrong reported that the Headquarters Renovation, Annexations, City-District Sewer Maintenance Contract, City Over Charge for Sewer Maintenance, Earthquake-Emergency Plan, Plant No. 1 Master Plan-Phase II RFP, AMP Flow Augmentation Agreement Modification, and the DI-02 Enlargement were the issues of discussion at this meeting. Item 19. No Public Information Committee meeting scheduled. INTERGOVERNMENTAL MEETINGS Item 20. Report on Planning Commission meeting of February 28, 1990. Director Armstrong reported that nothing of significance to the District was discussed at this meeting. Item 21. Report on WACO meeting of March 2, 1990. No District attendance at this meeting. Item 22. Report on ACWA Mini-Conference of March 2-3, 1990. Director Fox reported that the Mini-conference was a very informative conference. He stated that such issues as Workers' Compensation, the Endangered Species Act and Consolidation/Takeovers were discussed. Item 23. Report on City Council Meeting of March 6, 1990. Director Armstrong reported that the City of Yorba Linda's Sewer Maintenance Contract was discussed and acted upon at this meeting, as well as discussions concerning the Savi Ranch area financing and Ordinance modifications. Pager March 8, 1990 Item 24. Report on MWDOC meeting of March 7, 1990. Vice President Knauft reported that the AMP delays and shutdown, and adoption of a 10 meeting Board compensation Ordinance were discussed at this meeting. BOARD MEMBER COMMENTS Item 25. Director Armstrong: Director Armstrong had no comments. Item 26. Director Cromwell: Director Cromwell updated the Board regarding his mother-in-law's health, and thanked everyone for their thoughts and considerations. Item 27. Director Fox: Director Fox inquired of the arrangements being made for the upcoming ACWA conference in South Lake Tahoe on May 9, 10 and 11th. He also suggested that this conference may interfere with the previously planned District Open House scheduled for May 11, 1990. Item 28. Vice President Knauft: Vice President Knauft expressed his appreciation to staff for their efforts on the new Headquarters building. Item 29. President Korn: President Korn had no comments. CLOSED SESSION President Korn directed the Board into closed session to discuss the Salem Road Main Break litigation-(Cunningham/Barisic) and a personnel/labor relations matter. WORKSHOP Item 30. Board of Director's Goals Workshop. The Board reviewed the District's mission statement, the current environment for the District, several forecasts for the future and a variety of activities that should be further reviewed and placed in the Five-Year Plan and Annual Budget. Activities included improvements at Plant No. 1, a customer survey, a review of water storage requirements and a study of new entrepreneurial uses of water. ADJOURNMENT On a motion by Director Armstrong and seconded by Director Fox, the Board of Directors voted 5-0 to to adjourn the meeting at 3:50 p.m., to March 15, 1990 at 8:30 a.m. William P. Workman General Manager/Sec