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HomeMy WebLinkAbout1990-08-23 - Board of Directors Meeting MinutesPage 2-MW August 23, 1990 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING August 23,1990 The regular meeting of the Board of Directors of the Yorba Linda Water District was called to order by Arthur C. Korn, President, at 8:32 a.m., August 23, 1990, at the District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present were: Sterling Fox, Vice President Roy Knauft and President Arthur C. Korn. Director Armstrong was absent. Also present were William Robertson, Acting General Manager; Mr. Arthur Kidman, District Legal Counsel; Cheryl Gunderson, Business Manager; Mike Robinson, Assistant Administrator; Ray Harsma, Operations Superintendent; Mike Payne, Engineering Manager; and Barbara Bower, Secretary. Visitors present were Mr. Steve Tedesco, ASL Consulting Engineers; Mr. John Preston, Sainichi (USA); and, Mr. Brian Johnson, AW Associates. Ms. Gunderson introduced Ms. Linda Patti to the Board of Directors and reported that Ms. Patti began work on August 20, 1990 as the permanent Customer Service Clerk 1. APPOINTMENT OF DIRECTOR Item 1. Consideration of options to fill a Board vacancy. Acting General Manager reviewed the options available to fill the Board vacancy and stated that letters regarding consideration for appointment to the Board had been received from Mr. Charles Howe and Mr. Carl Scanlin. President Korn lead a discussion of the options. Following a general discussion, it was the Board of Directors consensus to not take any action on appointment of either Mr. Howe or Mr. Scanlin; have Vice President Knauft contact Supervisor Vasquez; and, let the voters decide who should sit on the Board in the upcoming November election. In addition, President Korn requested that the Acting General Manager send a letter to Mr. Howe and Mr. Scanlin thanking them for their interest and explaining the Board's position regarding the vacant seat. CONSENT CALENDAR On a motion by Vice President Knauft and seconded by Director Fox, the Board of Directors voted 3-0 to approve the Consent Calendar as follows: Item 2. Approval of Minutes - Regular meeting of August 9, 1990 as corrected. Item 3. Authorization for the Directors to leave the State of California prior to next meeting. Item 4. Approval of final payment to Converse Consultants in the amount of $2,310.53 for geotechnical services during the construction of the Chino Hills Reservoir; and authorize the payment from Improvement District No. 1 Construction Fund. 3Z9 Page`2M August 23, 1990 Item 5. Approval of Terms and Conditions for Water Service with Sainichi (USA) Corporation for their project located at the northeast corner of Old Canal Road and East Park Drive, Job No. 9034. Item 6. Approval of Quitclaim Deed of Easements for Charles E. and Nancy M. Rutz, Gerard G. Moulin, Michael J. and Sally A. Aversa, Robert J. Fredericks, Robert A. and Elfrieda E. Martinson, Frank O. and Angie P. Ventura; and authorize the President and Secretary to execute the Quitclaim Deeds. Item 7. Approval to release the Guarantee Bond to Colich & Sons for the installation of the Bryant Crossfeeder Phase No. 7 project. Item 8. Approval to release the Cash Bond (Labor and Material) in the amount of $5,100.00 to Precision Pipeline for the water improvements for the Kavlico Corporation project. Item 9. Approval of contract with KMP Engineering Contractor, Inc. in the amount of $10,587.50 for the installation of a water main in Richfield Road north of MiraLoma Loma Avenue; and authorize the President and Secretary to execute the contract. Item 10. Approval of the purchase of one 1 1/2 ton Cab and Chassis from Coleman Truck Center, Long Beach in the amount of $26,356.38 and one 3/4 ton maintenance truck from Villa Ford of Orange in the amount of $14,142.51. PUBLIC HEARING CALENDAR Item 11. Report on Requirements for Establishing Fees. Acting General Manager William Robertson reviewed the three basic types of fees that the Board would be considering in the next agenda item. He reviewed the Processing Fees, Impact Fees and User Fees, and the standards by which the fees are established. Mr. Robertson concluded by stating that the District's fee program is in compliance with standards set forth by State law. This report was for information only, no action was required. Item 12. Consideration to adjust Water and Sewer Development and Customer Service Fees for Fiscal Year 1990-91. President Korn opened the public hearing concerning the Water and Sewer Development, and Customer Service Fees, and Acting General Manager/Secretary William Robertson provided proof of the public hearing notice. No correspondence or petitions on this matter had been received. On a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to accept the Proof of Publication notice of the public hearing. President Korn requested testimony, beginning with a report by Acting General Manager William Robertson. Mr. Robertson stated that a Yorba Linda Water District Water and Sewer Development, and Customer Service Fee Report for Fiscal Year 1990-91 had been completed where in the District's existing fee program and practices were Page' August 23, 1990 examined. He stated that certain water and sewer development fees need to be adjusted as a result of increases in labor approved by the Board in June 1990. Mr. Robertson further stated that the Customer Service Fee program was extensively reviewed this year and that, except for a different labor overhead rate, the standards used to establish Customer Service fees are consistent with the water and sewer processing fees. In addition, Mr. Robertson stated that by the time a residential account became delinquent approximately three months have lapsed; therefore, adjustments for deposits on residential accounts were based on three months average usage instead of two months average usage. Mr. Robertson reviewed the fee increases and reported the sewer capital facility fees would be considered by the Board in December 1990. He further mentioned that should the Board of Directors adopt the adjustments, all fees would become effective 60 days from the date of adoption. Upon completion of Mr. Robertson's report, President Korn requested testimony from the public and having none, he closed the public hearing. On a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to accept the Yorba Linda Water District Water and Sewer, and Customer Fee Report for Fiscal Year 1990-91; adopt Resolution No. 90-28 revising the District's Water Development Fee and Customer Service Fees; and, adopt Resolution No. 90-29 revising the District's Sewer Development Fees. Item 13. Consideration of Fiscal Year 1990-91 Standby Availability Assessments for Improvement District No. 2. President Korn opened the public hearing concerning the Fiscal Year 1990-91 Standby Availability Assessments for Improvement District No. 2, and Acting General Manager/Secretary William Robertson provided proof of the public hearing notice and certification that notice of the public hearing was mailed to each affected land owner. No correspondence or petitions on this matter had been received. On a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to accept the Proof of Publication notice of the public hearing, certification that notice was mailed to each affected land owner and list of land owners who received the notice. President Korn requested testimony, beginning with a report by Engineering Manager, Michael Payne. Mr. Payne stated that the Engineer's Report on Fiscal Year 1990-91 Water Standby-Availability Assessments for Improvement District No. 2 (ID-2) had been completed wherein the ID-2 debt service financial requirements, analysis of benefits and standby charge assessments were examined. Mr. Payne explained that as the California Water Code permits the District to fix water standby availability assessments within ID-2, and this years benefit analysis and assessment spread was more complex due to the sale of Series "C" bonds. The District entered into a contract with ASL Consulting Engineers to prepare the Engineer's Report for Fiscal Year 1990-91. Mr. Payne then introduced Mr. Steve Tedesco, ASL Consulting Engineers, to give a more detailed presentation on the Engineer's Report. Q `°-i i Page=' August 23, 1990 Mr. Tedesco explained that the Engineer's Report recommends a water standby assessment totaling $496,960 in order to raise sufficient revenue to pay principal and interest on ID-2 Series A, B and C General Obligation Bonds. He then reviewed the various zones of benefit related to each series of bonds, Assessed Value and Debt Service prorations, method to determine benefits and the various assessment levies in each ID-2 benefit zone. Upon completion of Mr. Tedesco's report, President Korn requested testimony from the public and heard from Mr. Brian Johnson who had no comments. After a general discussion by the Board, on a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to accept the Engineer's Report on Fiscal Year 1990-91 Water Standby-Availability Assessments for Improvement District No. 2; and, adopt Resolution No. 90-30 fixing a Water Standby Assessment for Fiscal Year 1990-91 within the Yorba Linda Water District Improvement District No. 2. Item 14. Consideration of Sewer Maintenance Charge for Fiscal Year 1990-91. President Korn opened the public hearing concerning the Sewer Maintenance Charge for Fiscal Year 1990-91, and Acting General Manager/Secretary William Robertson provided proof of two public hearing notices concerning this matter. No correspondence or petitions on this matter had been received. On a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to accept the two Proof of Publication notices of the public hearing. President Korn requested testimony, beginning with a report by Business Manager, Cheryl Gunderson. Ms. Gunderson stated that a Yorba Linda Water District Sewer Maintenance Charge Report for Fiscal Year 1990-91 had been completed wherein the District's Sewer Maintenance Charge was examined. She stated that the charge is used to recover sewer maintenance and repair expenses, and is uniformly imposed on all connections to the sewerage collection system owned by the District. She also reviewed in detail the financial condition of the Sewer Operating Fund and the four options presented in the Report. Ms. Gunderson stated that interest earnings are more reliable than the water fund, and given the current level of reserves, it is recommended that the Board retain the present $23.00 per year charge for Fiscal Year 1990-91. As a point of information, she reported that if depreciation expense was removed from the District's Maintenance Charge calculation, the annual charge would be $11.48 per connection. Ms. Gunderson reported that last years increase from $21.00 per connection to $23.00 per connection was never implemented on connections billed directly by the District; therefore, in the event the Board chooses to retain the current rate, customers receiving a water bill will still experience an increase to bring them into compliance with the present charge. The charge will become effective 60 days from August 23, 1990 or, if the Board approves a water rate increase, then simultaneously with a change in water rate. The Finance-Accounting Committee extensively reviewed the report at their Page =ate ~'l - August 23, 1990 August 8th meeting. Upon completion of Ms. Gunderson's report, President Korn requested testimony from the public and having none, he closed the public hearing. After a general discussion by the Board, on a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to accept the Yorba Linda Water District Sewer Maintenance Charge Report for Fiscal Year 1990-91; adopt Resolution No. 90-31 determining that Ordinance 89-01 shall remain in effect; and, adopt Resolution No. 90-32 determining that Ordinance 89-02 shall remain in effect and authorize the County Auditor/Controller to levy the Assessment on parcels outside the District's service boundary in accordance with Health and Safety Code 5471 et-seq. DISCUSSION CALENDAR Item 15. Consideration of Amendments to the Terms and Conditions for Water and Sewer Service with Leasure Enterprises. Engineering Manager, Michael Payne, explained that following numerous meetings with Mr. Leasure, the District and Mr. Leasure have completed negotiations allowing completion of his project. Under the proposed Terms and Conditions, Mr. Leasure will be responsible for construction of the new facilities on his land; however, the District will partially fund construction of approximately 100 feet of 8 inch diameter pipe, reconnect the four existing water services to the new 8 inch pipe, and properly abandon the existing 4 inch diameter pipe located in the blanket easement. After a general discussion, on a motion by Vice President Knauft and seconded by Director Fox the Board of Directors voted 3-0 to approve the Amendments to the Terms and Conditions for Water and Sewer Service with Leasure Enterprises and approve the allocation of $3,000.00 from the Mariposa Avenue Replacement Project. Item 16. Consideration of Reimbursement Agreement with Brighton-Fairmont Associates. Engineering Manager Michael Payne explained that Brighton-Fairmont Associates is in the process of constructing "off-site" sewer facilities required pursuant to the Pre-Annexation Agreement. One of the specified projects is replacing a portion of the existing 10 inch diameter Orchard Sub Trunk No. 5 (OST 5) with a section of 12 inch diameter pipe. Mr. Payne reported that the District would like to participate in this construction by oversizing the 12 inch pipe to 15 inch diameter pipe. He further stated that the District will pay for installing the pipe to 12 inches in diameter while Brighton-Fairmont Associates will pay the cost difference to increase the pipe to 15 inches in diameter. The project was identified in the Adopted Fiscal Year 1990-91 Budget. On a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to approve a Reimbursement Agreement with Brighton-Fairmont Associates for the construction of the OST 5 Trunk Sewer Main and authorize the President and Secretary to execute the Agreement. Item 17. Status report on the acquisition of the Etchandy No. 2 Water Well. Engineering Manager Michael Payne stated the staff is continuing to work on the Etchandy Water Well acquisition; however, the process has slowed considerably due to q Page August 23, 1990 problems locating the legal owners. He reported that the Goodwin Water Company, the legal owner, is no longer in business and staff is having difficulties locating the whereabouts of the principals who have the authority to conclude negotiations and sign documents. Mr. Payne reported that Mr. Dominic Etchandy has been helpful but is not the legal owner. Lastly, Mr. Payne reported staff will continue its efforts to locate the owners. This item was for information only, no action was required. ACTING GENERAL MANAGER'S REPORT Item 18. Consideration of Water Rates for Fiscal Year 1990-91. Acting General Manager William Robertson stated that a Yorba Linda Water District Water Rate Report for Fiscal Year 1990-91 had been completed wherein the Water Operating Fund, Board adopted fiscal policies and water rate alternatives were examined in detail. He stated consideration of water rates was the last of the major financial issues to be reviewed by the Board of Directors for the current fiscal year. Mr. Robertson reviewed the Board's fiscal policies adopted in March 1990, drawdown of the Operating Fund reserve, the need to improve the operating fund reserve as a contingency against slow growth and/or reduced usage, and a survey of reserves at five special districts in Orange County along with one special district in northern California. He next presented a detailed review of water rate Alternative No. 1, which is a 3.4% across-the-board rate increase and, Alternative No. 2, which is a 5.1% across-the-board rate increase combined with a 5% reduction in Minimum Monthly Allowance. President Korn stated Alternative No. 2 was being presented for consideration as a step toward a combined change of increasing rate related revenues along with a reduction in monthly allowances; however, due to the lack of data concerning water usage, the staff cannot as yet evaluate this alternative's affect on customers or District revenues. The Board of Directors had a lengthy discussion regarding the need to improve reserves and the water rate alternatives. The Board's consensus was as follows: implement the 3.4% increase identified in Alternative No. 1 this year; that the adjustment shall be effective for all meter readings after December 1, 1990; that staff shall compile water usage data to analyze reducing the allowance; and, next year consideration shall be given to multi year adjustments to improve the Water Operating Fund reserve. On a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to receive and accept the Water Rate Report for Fiscal Year 1990-91; and adopt Resolution No. 90-33 amending Water Rates. Item 19. Consideration of extension of Radio Antenna Agreement with City of Yorba Linda. Acting General Manager William Robertson stated the existing agreement with the City of Yorba Linda for a radio antenna and repeater system at the District's Fairmont Reservoir site expired in February, 1989. He further stated the City and District each have certain financial tradeoffs that justify extending the present agreement. On a motion by Vice President Knauft and seconded by Director Fox the Board of Directors voted 3-0 to authorize the Acting General Manager to send a letter to the City of Yorba Linda extending the current Radio Antenna and Repeater Agreement for another five year period ending in February 1994. Page August 23, 1990 Item 20. Consideration to repeal Resolution 90-12 concerning the City Redevelopment Agency. Acting General Manager William Robertson reported that the District and City of Yorba Linda have entered into an agreement for reimbursement of tax increment funds. Given that the District cannot have both an agreement for reimbursement of tax increment funds and automatic pass through of tax increment, it is recommended that the Board adopt a resolution to repeal the automatic pass through. After a brief discussion, on a motion by Vice President Knauft and seconded by Director Fox the Board of Directors voted 3-0 to adopt Resolution 90-34 to repeal Resolution No. 90-12 electing to be allocated certain property tax revenues within the City of Yorba Linda's Redevelopment Project-Amendment Area No. 1. Item 21. Consideration of adopting Resolution No. 90-35 in opposition to the Environmental Protection Act of 1990 on the November 1990 ballot. Acting General Manager William Robertson reviewed the policy statements contained in Environmental Protection Act of 1990. He further stated that MWDOC was the latest public agency to join a coalition of organizations opposing the initiative. Additionally, Vice President Knauft reported that MWD took action earlier in the week to oppose the initiative. After a discussion, on a motion by Director Fox and seconded by Vice President Knauft the Board of Directors voted 3-0 to adopt Resolution No. 90-35 in opposition to the Environmental Protection Act of 1990 initiative on the November Ballot. LEGAL COUNSEL'S REPORT Item 22. Legal counsel had nothing to report. STANDING COMMITTEE REPORT Item 23. Report on Executive-Administrative-Organizational Committee meeting of August 15, 1990. President Korn reported that in Director Armstrong's absence Vice President Knauft attended the August 15, 1990 Executive-Administrative-Organizational Committee meeting. The Committee discussed the candidates running in the November election and options for appointment to fill the vacancy. Item 24. Report on Finance-Accounting Meeting meeting of August 8, 1990. Vice President Knauft reported that the Finance-Accounting Committee discussed the Water Rate report and Sewer Maintenance Charge report. Item 25. Report on Finance-Accounting Meeting meeting of August 15, 1990. Vice President Knauft reported that the Finance-Accounting Committee discussed the Development Fee report, Improvement District No. 2 Stand-by Charge report and the Water Rate report. Item 26. Authorization for Payment of Bills. On a motion by Vice President Knauft and seconded by Director Fox, the Board of Directors voted 3-0 to approve payment of bills, payroll and refunds in the amount of $331,353.71 on Check Nos. 5741, 5742, 5998, 6087, 6207 through 6297 and 6312, and 6326; and Payroll Check Nos. 5488 through 5550. :~~,S Page_ August 23, 1990 Item 27. No Personnel Committee meeting was scheduled. Item 28. No Planning-Engineering-Operations Committee was scheduled. Item 29. Report on Public Information (Xeriscape) Committee meeting. Director Fox reported that future Xeriscape seminars were discussed at the August 22nd Xeriscape Committee meeting. INTERGOVERNMENTAL MEETINGS Item 30. Report on CSDA meeting, August 10. President Korn reported that he will not be able-to attend the upcoming CSDA conference in September and advised that the District needs to send a voting member in his place. On a motion by President Korn and seconded by Vice President Knauft the Board voted 3-0 to authorize Director Fox to represent the District as a voting member at the September CSDA Conference. Item 31. Report on MWDOC meeting of August 15. Vice President Knauft was unable to attend the August 15th MWDOC meeting. Item 32. Report on OCWD meeting of August 15. Director Fox reported that Garden Grove requested relief from their Basin Equity Assessment while working water well. Additionally, Mr. Mills reported on drought related issues. Item 33. Report on City Council meeting of August 21. Director Fox reported that all of the Public Hearings were canceled and rescheduled for a later Council meeting. BOARD MEMBER COMMENTS Item 34. Director Armstrong: Director Armstrong was absent Item 35. Director Fox: Director Fox had no comments Item 36. Vice President Knauft: Vice President Knauft had no comments. Item 37. President Korn: President Korn had no comments Acting General Manager William Robertson noted that the weather station was operating once again. Ms. Gunderson stated that the District's Annual Picnic is scheduled for this coming Saturday, August 25, 1990 beginning at 12:00 noon. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board reviewed activities for the month of September. Page 2 ~ August 23, 1990 CLOSED SESSION: There was no closed session. ADJOURNMENT On a motion by Vice President Knauft and seconded by Director Fox, the Board of Directors voted 3-0 to adjourn the meeting at 10:34 a.m. William J. Roberts 'n Acting General Manager/Secretary