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HomeMy WebLinkAbout1990-04-12 - Board of Directors Meeting Minutes: D -1 -j Page 1 April 12, 1990 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING April 12, 1990 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., April 12, 1990, in the District offices at 4622 Plumosa Drive, Yorba Linda CA. Directors present were: Whit Cromwell, Sterling Fox, Roy Knauft and President Arthur C. Korn; Paul Armstrong was absent. Also present were: William Robertson, Assistant General Manager; Mike Payne, Engineering Manager; Cheryl Gunderson, Business Manager; Mike Robinson, Assistant Administrator; Ray Harsma, Operations Superintendent; and Barbara Bower, Secretary. CONSENT CALENDAR On a motion by Director Fox and seconded by Director Knauft, the Board of Directors voted 4-0 to approve the Consent Calendar as follows: Item 1. Approval of Minutes - Adjourned meeting of March 15, 1990 and Adjourned meeting of March 21, 1990. President Korn called the Board's attention to the financial policies listed in the minutes of the March 15, 1990 workshop meeting and requested other members of Board to keep the list handy for future reference. Item 2. Approval of scheduling Board of Directors meeting on May 17 and May 31, instead of May 10 and May 24. President Korn called attention to the change in dates and reminded other members of the Board to mark their calendars. Item 3. Authorization for the Directors to leave the State of California prior to next meeting. Item 4. Approval of the Terms and Conditions for Water Service with Werner and Hilda Traut for their project located at 22895 La Palma Avenue, Job No. 9011. Item 5. Approval of the Terms and Conditions for Water Service with Stonehaven Associates for their project located north of the intersection of Yorba Linda Boulevard and Stonehaven Drive, Job No. 9013. Item 6. Approval of the Terms and Conditions for Water Service with The Village Green Commercial Development for their project located at 18651 Yorba Linda Boulevard, Job No. 9008. ~ cl Page - ck -1 April 12, 1990 Item 7. Approval of the Terms and Conditions for Water Service with Saman Construction for their projected located at the southwest corner of Lakeview Avenue and Orchard Drive, Job No. 9012 with a modification that in the event the City of Placentia does not require Saman Construction to build the north side of Orchard Drive, then the District will not require construction of water pipelines and a fire hydrant described under Item No. 35 and 36 in the Terms and Conditions. Item 8. Approval of payment to M. J. Brock & Sons, Inc., for the reimbursement of construction cost for the Water Transmission facilities installed within Tract 11366, in the amount of $33,360.00. Item 9. Acceptance of the Hidden Hills Booster Station modification; authorize the filing of a Notice of Completion; authorize the release of the Labor and Materials Bond in 35 days; and authorize the release of the Faithful Performance Bond in one year if no defects have been found. Item 10. Approval of Reimbursement Agreement with Woodcrest Development of Orange County, Inc., for the excavation of the Elk Mountain Reservoir; an authorize the President and Secretary to execute the agreement. Item 11. Approval of Reimbursement Agreement with Woodcrest Development of Orange County, Inc., for the construction of the Water Transmission facilities to be installed in Camino de Bryant; and authorize the President and Secretary to execute the agreement. Item 12. Authorize President and Secretary to sign a Release of Lien for Improvement District No. 2, Series "B" Bond Sale. PRESENTATION Item 13. Presentation by Larry Kraemer, Director, Orange County Water District was not present for this item. DISCUSSION CALENDAR Item 14. Report on Financial Statement for the eight months ended February 28, 1990. Business Manager Cheryl Gunderson reported that the financial statements in the agenda packet are the first ones compiled and printed by the District's new computer system. Mrs. Gunderson also reported that as we use the reports there are bound to be some minor revisions, however, the basic financial data will probably remain the same. On a motion by Vice President Knauft and seconded by Director Fox, the Board of Directors voted 4-0 to accept the Financial Statement for the eight months ended February 28, 1990 and commended staff on the new reports. Page -::Ll April 12, 1990 Item 15. Update of status of certain water facility refund agreements. Business Manager Cheryl Gunderson reported on the status of water facility refund contracts knows as 22% agreements. She reported they are known as 22% agreements because the annual refund amount is based on 22% of the gross water sales within certain developer tracts constructed in the time period between June, 1969 and October, 1973. The agreements refund the cost to build certain water facilities and the District's obligation to developers ceases upon full payment of the agreement cost or passage of twenty years after recording the Notice of Completion, whichever comes first. Currently, there are only two outstanding 22% agreements: one with Margaret Heimer with a refundable balance of $6,082.17 under an agreement dated March 23, 1972; and the second with Broadmoor Homes with a refundable balance of $29,954.11 under an agreement dated October 30, 1973, for a total refundable balance of $36,036.28. The total refundable balance is included on the District's financial statements as a liability of the Water Fund. This presentation was an information item intended to keep the members of the Board informed of the purpose and status of 22% refund agreements. Item 16. Urban Water Management Plan. Assistant General Manager Bill Robertson summarized that current water supply conditions across the State are continuing to worsen as we enter the fourth year of below average precipitation. The Department of Water Resources is already imposing 28% reductions on agricultural contractors and may call for reductions to their urban water contractors. The Colorado River system is also experiencing below average runoff and the state of Arizona is exerting its right to take more water from the river. The City of Los Angeles will lose nearly 60% of its Owens Valley supply and probably will exert pressure to take more water from MWD. MWD is calling for voluntary measures to reduce the threat of water shortages. The local groundwater basin has adequate supplies, however the District lacks the ability to pump more than 50% to 60% from this source. The District is already at Level II measures identified in its Urban Water Management Plan, and no written policies are in place to implement the Plan's Mandatory or Emergency goals. He also reported that events during the week April 9 included reports that the City of Santa Barbara is now looking at alternative supplies that may cost in excess of $3,000 per acre foot; MWDOC submitted sample Water Conservation Ordinance and Resolution with a request for adoption as soon as possible; that most agencies in Orange County are considering adoption of conservation Ordinances or Resolutions; and MWD is considering rebates for agencies using less water than last year. District general counsel, Mr. Arthur Kidman, reported on the importance of a legal foundation to support mandatory or emergency conservation activities planned by the District. The Board discussed the water supply issue at length and concluded that the matter should be referred to the Public Information Committee with the objective to return with a plan to take the District from Level II activities to Level III activities and eventually to Level IV activities. Moreover, it was a consensus of the Board that action begin now on Page April 12, 1990 the legal and policy aspects so the District is prepared in the event it becomes necessary to institute mandatory reductions in the near future. Lastly, the Board reviewed a draft "Guest Editorial" for release to the Yorba Linda Star and offered advice to staff. This presentation was an information item intended to keep the members of the Board informed of the water conditions throughout the State and conservation measures available to the District. Item 17. Consideration of Resolution to pass through property taxes within the City Redevelopment areas. Assistant General Manager Bill Robertson reported that the City of Yorba Linda Redevelopment Agency has proposed Amendment No. 1 to its Redevelopment project. The Amendment area affects the District's "1959" General Obligations Bonds, Improvement District No. 2 Series "C" General Obligation Bonds, share of the 1% tax base used for Operations and Maintenance, and ability to finance infrastructure affected by planned improvements within the amendment area. He also reported that adoption of Resolution 90-12 effectively bypasses the Redevelopment Agency but does not allow for tax increment growth above the 2% allowed by Proposition 13. In order to receive full benefit from tax increment above the 2%, the District must negotiate a pass through with the Agency. Mr. Robertson also reported that the he, Engineering Manager Mike Payne and Art Kidman attended a meeting with Agency representatives on April 11, 1990. i Mr. Kidman continued the presentation with a detailed discussion of options identified in his memorandum in the Agenda packet. He also reported that the meeting with Agency representatives included discussion of items important to the District: amending the existing I.D.-2 Pass Through Agreement to include Series °C° General Obligation Bonds; a new pass through agreement to receive full benefit for the "1959" General Obligation Bonds; that the District would retain jurisdiction to impose its standard terms and conditions for projects in the amendment area; that developers, or the Agency, would finance infrastructure improvements caused by new development; and that ownership of infrastructure improvements financed by the Agency would transfer to the District in a normal manner. The Agency agreed to each of these issues and will begin drafting agreements for review by the District. Additionally, the Agency agreed to consider financing of major offsite improvements, such as reservoir and major pipelines, so long as the improvements are directly related to the Agency and they are included in the Amendment area Plan. The staff was instructed to prepare a list of improvements that may be needed in the amendment area and transmit it to the Agency. On a motion by Vice President Knauft and seconded by Director Fox, the Board of Directors voted 4-0 to adopt Resolution No. 90-12 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ELECTING TO BE ALLOCATED CERTAIN TAX REVENUES NOTWITHSTANDING THE PROPOSED -1 V Page , April 12, 1990 FIRST AMENDMENT OF THE YORBA LINDA REDEVELOPMENT PROJECT (HEALTH AND SAFETY CODE SECTION 33676). In the event the District and Agency enter into pass through agreements then the District will rescind Resolution No. 90-12. So as to continue working with the Agency to assure that agreements are drafted in accordance with recent negotiations, on a motion by Director Fox and seconded by Director Cromwell the Board of Directors voted 4-0 authorizing staff to: 1. Consult with the City Redevelopment Agency to obtain agreement on: • Amending the existing Improvement District No. 2 Pass Through Agreement for the full pass through of tax increment for Improvement District No. 2, Series "C" General Obligation Bonds. • Full pass through of tax increment for 1959" General Obligation Bonds. • The District's ability to retain jurisdiction to impose terms and conditions for development projects in the amendment area. • Developers and/or Redevelopment Agency will finance infrastructure improvements to the extent those improvements are required to meet higher land use requirements than existing facilities are capable of meeting. • Transfer ownership of infrastructure improvements financed by the Agency to the District in a normal manner. 2. Participate in the Fiscal Review Committee process currently scheduled for April 20, 1990. Item 18. Regional "Xeriscape '90" Conference and purchase of admissions for District Xeriscape Committee members. Assistant Administrator Michael Robinson reported that the "Xeriscape '90" conference will be held at the Irvine Marriott Hotel beginning on May 17, 1990. He also reported that the District will expend $300.00 for the purchase of three Banquet and three Conference admissions for use by members of the Xeriscape Committee, compared to a budget approval of $490.00 for this purpose. This presentation was an information item intended to keep the members of the Board informed of Xeriscape related expenditures. President Korn opened a discussion of budget policies, questioning whether this presentation should have been an information item or approval item. Additionally, President Korn indicated approval of a budget document is not necessarily automatic authorization for staff to proceed on some items. Vice President Knauft indicated that the budget does grant the General Manager authority to proceed with certain expenditures. A discussion of this issue followed with a consensus that presentation of these types of expenditures as an information item does afford members of the Board an opportunity to make the expenditure an approval item if they desire. Page April 12, 1990 Item 19. Election of two representative to ACWA Board of Directors. Assistant Administrator Michael Robinson reported that the District received a request from ACWA to vote for two candidates for the County Water District Section of the ACWA Board of Directors. He reported there are three candidates were vying for the two positions on the Board: May M. Gibson, Mission Springs Water District; Cheryl Lehn, Kings County Water District; and Philip A. Disch of East Valley Water District. The members of the Board noted that Mr. Disch's name was placed in nomination at the recent ACWA conference, and reviewed and discussed each candidates resume. The members of the Board favored new views on the ACWA Board and representation from nearby agencies. On a motion by Director Fox and seconded by Director Cromwell, the Board of Directors voted 4-0 to cast the ballot for Philip A. Disch of the East Valley Water District and Mary Gibson of the Mission Springs Water District to the County Water District Section of the ACWA Board of Directors. GENERAL MANAGER'S REPORT Item 20. General Manager's Oral Report. Assistant General Manager William Robertson reported on the recent resignations of Customer Service Clerk II and Customer Service Clerk III positions and that job flyers to fill the positions have been posted. Additionally, Lynn Nuzman's arm, injured earlier this year in a fishing accident, has now healed, the Doctor has released him and job flyer to fill the Plant Operator I position has been posted. He also passed out the District's Annual Report and Water Quality Report. Lastly, he reported that MWDOC sent an announcement that Mr. Clay Layton, Layton Water Softeners, has objected to the implication in the Water Quality reports have misrepresented the water filtration process, and that Mr. Layton may contact the Board members to voice his objections. LEGAL COUNSEL'S REPORT Item 21. Legal Counsel did not have anything to report. STANDING COMMITTEE REPORTS Item 22. No Executive-Administrative-Organizational Committee report scheduled. Item 23. Report on Finance-Accounting Committee meeting of April 5, 1990. Vice President Knauft reported that the Bank of Yorba Linda, 1989-90 Audit, City Redevelopment Project, Board Compensation, City Radio Antenna Contract and Sewer Drainage Area Report were items of discussion at the Committee's April 5 meeting. Item 24. 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 $591,801.21 on Check Nos. 19635 and 19750 through 19896, and Payroll Check Nos. 4931 through 4987 and one wire dated April 12, 1990 to MWDOC in the amount of $157,155.71. __~-°t VIs Page 6 April 12, 1990 Item 25. No Personnel Committee meeting report scheduled. Item 26. Report on Planning-Engineering-Operations Committee 1990. Vice President Knauft reported that the Brighton and Emergency Response Plan, Richfield Road Widening, Zone 4 Mountain Reservoir, and Highland Reservoir Update were items Committee's April 3, meeting. meeting of April 3, College Annexation, Booster Station, Elk of discussion at the Item 27. Schedule a Public Information Committee meeting. A Public Information Committee meeting was scheduled for Tuesday, April 17, at 9:00 a.m. at the District office. INTERGOVERNMENTAL MEETINGS Item 28. Report on ISDOC Miniconference Fox, and President Korn all reported miniconference and they observed it was conferences. of March 24, 1990. Director's Cromwell and )n the success of the one day ISDOC nore informative that some larger multi-day Item 29. Report on Planning Commission meeting of March 28, 1990. President Korn reported that due to changes in land use designation from conservation to low density residential General Plan Amendment No. 89-03B affects District water planning. The staff was asked to follow this matter and be aware of its impact on the District. Item 30. Report on ISDOC Board of Directors meeting of March 29, 1990. Director Cromwell reported that the ISDOC Board of Directors discussed the recent Miniconference, an upcoming goals workshop and that he is to bring the District's Annual Report to the next ISDOC Board meeting. Item 31. Report on City Council meeting of April 3, 1990. Director Fox reported that the City endorsed a 1/2 cent sales tax for transportation purposes and an Ordinance that developers are to make home sprinkler systems an option in their products. Item 32. Report on MWDOC meeting of April 4, 1990. Vice President Knauft reported that MWD Water Conservation kits containing flow restrictors, dye tablets and toilet tank dams are available at no cost. The staff was requested to contact MWD and obtain kits. Item 33. Report on OCWD meeting of April 4, 1990. Director Fox reported that he's unable to attend the April 4 meeting, however he did report on OCWD's Burris Pit dedication activities on April 5, 1990. Page April 12, 1990 I Item 34. Report on WACO meeting of April 6, 1990. Vice President Knauft reported that MWD made a presentation on the fourth year of drought to WACO, and that staff should be prepared to give water conservation talks to local Rotary and other community service clubs. BOARD-MEMBER COMMENTS Item 35. Director Armstrong: Director Armstrong was absent. Item 36. Director Cromwell: Director Cromwell heard that Vice President Knauft recently had to visit a doctor and inquired about his health. Item 37. Director Fox: Director Fox reported he will be out of town from April 19 to April 24. Item 38. Vice President Knauft: Vice President Knauft reported that the April 11, Planning Commission meeting did not have anything of interest to the District. Item 39. President Korn: President Korn had no comments. ADJOURNMENT On a motion by Vice President Knauft and seconded by Director Fox, the Board of Directors voted 4-0 to adjourn the meeting at 10:22 a.m. William P. Workman General Manager/Secretary