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HomeMy WebLinkAbout1989-08-24 - Board of Directors Meeting MinutesPage 2681 August 24, 1989 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING August 24, 1989 The regular meeting of the Board of Directors of the Yorba Linda Water District was called to order by Sterling Fox, President, at 8:30 a.m., August 24, 1989, in the District offices at 4622 Plumosa, Yorba Linda. Directors present were: Paul Armstrong, Roy Knauft, Arthur C. Korn and Sterling Fox. Director Cromwell arrived at 8:35 a.m. 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; Arthur Kidman, Legal Counsel; Brian Johnson, The Pacific Company; Sam Peterson, Sam W. Peterson and Associates; and Joan Cox, BSI Consultants. CONSENT CALENDAR On a motion by Director Armstrong and seconded by Director Knauft, the Board of Directors voted 4-0 (Cromwell: absent) to approve the Consent Calendar as follows: Item 1. Approval of Minutes - Regular meeting of August 10, 1989. Item 2. Authorization for the Directors to leave the State of California prior to next meeting. Item 3. Approval of Progress Payment No. 9 to F.T. Ziebarth Company in the amount of $172,606.14 for construction of the Santiago Reservoir. Item 4. Approval of Progress Payment No. 11 to Fred H. Woodard Co., in the amount of $43,740.00 for construction of the Chino Hills Reservoir. Item 5. Approval of an Agreement with Camp Dresser and McKee, Inc. to provide design engineering services for the Zone 4 Terminus Reservoir in the amount of $54,700.00 and authorize the President and Secretary to execute the agreement. Item 6. Approval of the Terms and Conditions for Water Service with the Klein Group for their project located south of La Palma Avenue, east of Weir Road, Job No. 8951. Item 7. Denial of claim submitted by David and Valerie Davis of 18992 Villa Terrace Lane, Yorba Linda, California . Page 2682 August 24, 1989 Item 8. Acceptance of the Treasurer's Report for July 31, 1989. Item 9. Approval of the purchase agreement for three 1 1/2 ton Cab and Chassis from GMC Truck Center in the amount of $52,161.54. Item 10. Approval of purchase agreement for a new four wheel drive truck from Villa Ford in the amount of $18,072.05. DISCUSSION CALENDAR Item 11. Consideration of a request from the Pacific Company to discuss water service to Tracts 13369 and 13370. Engineering Manager Mike Payne briefly explained the request for water service to Tracts 13369 and 13370. He further stated that the tracts were part of the 1989 Water Service Agreement which was recently approved by the District. After a general discussion, the Board of Directors approved of the staff referring the request to the District's Planning-Engineering-Operations Committee and to legal counsel for further review. Item 12. Consideration of new District Telephone System purchase. Executive Assistant to the General Manager Robb Quincey explained that the District's in-house Technology-Innovation-Productivity (T.I.P.) Committee had recently completed and distributed a Telephone Request for Proposal, and four proposals were received. The four vendors choosing to participate in the selection process are as follows: Vendor Bid Amount AT&T $43,184. Dial One Creative Connections $32,416. Executone Information Systems $31,556. California Communication Services $22,900 Mr. Quincey explained that the T.I.P. Committee thoroughly evaluated each of the four submitting vendors in accordance with the Evaluation and Selection Criteria outlined in the Request for Proposal. He stated that each vendor's reference list were also checked, and two finalists Dial One Creative Connections and Executone Information Systems were chosen. Mr. Quincey further explained that the finalists were further evaluated based on oral presentations, vendor demonstrations and further reference checks. Based on the criteria set forth for the District's telephone system, it was concluded that Dial One Creative Connection's proposed Toshiba telephone system scored highest in the evaluation and best met the needs of the District. After a lengthy discussion by the Board with regard to service concerns, telephone system reliability and related system costs, on a motion by Director Armstrong and seconded by Director Knauft, the Board of Directors voted 5-0 to Page 2683 August 24, 1989 approve a contract with Dial One Creative Connections for the purchase of a Toshiba Telephone System in the amount of $32,416.; and authorize the President and Secretary to execute the contract. PUBLIC HEARING Item 13. Report on Requirements for Establishing Fees. General Manager William Workman stated that as a result of the passage of Propositions 13 and 4, it has become common for special districts, cities and counties to charge fees for service and new capital facilities. Mr. Workman reviewed the three basic types of fees that the Board would be considering in the next several agenda items. He reviewed Processing Fees, Impact Fees and User Fees, and the standards that are to be met when establishing a fee program. Mr. Workman concluded by stating that the District's fee program meet the standards set forth by the State of California. Item 14. Consideration of Water Development Fees. President Fox opened the Water Development Fees Public Hearing, and Secretary/General Manager William Workman provided proof of the public hearing notice. No correspondence or petitions on the matter had been received. President Fox requested testimony, beginning with a report by Executive Assistant to the General Manager Robb Quincey. Mr. Quincey stated that a Yorba Linda Water and Sewer Development Fee Study had recently been completed wherein the District' existing fees and practices were examined, in addition to an analysis that certain water development fees need to be adjusted as a result of increases in labor, supplies and services. Additlonally, Mr. Quincey stated that two new fees were being proposed for the Board's consideration, namely a Backflow Monitoring Device Fee and Temporary Untreated Water Fee. Mr. Quincey reviewed the fee increases and proposed new fees, and explained the justification for these fees. He further mentioned that should the Board of Directors adopt the proposed adjustments, the processing fees would become effective 60 days from the date of adoption, and the remaining user and development fees would become effective August 24, 1989. Upon completion of Mr. Quincey's report, President Fox requested testimony from the public and having received none, he closed the public hearing. After a lengthy discussion by the Board with regard to labor costs, Backflow testing and the refund period for existing water related construction contracts, on a motion by Director Cromwell and seconded by Director Knauft, the Board of Directors voted 5-0 to accept the Yorba Linda Water and Sewer Development Fee Study. On a motion by Director Knauft and seconded by Director Cromwell, the Board of Directors voted 5-0 to adopt Resolutions 89-29 and 89-30, respectively, revising the District's existing Water Development Fee structure and adding a new Backflow Monitoring Device Fee and Temporary Untreated Water Fee, and amending the District's Rules and Regulations with l regard to Water Development Fees. Item 15. Consideration of Sewer Development Fees and Sewer Master Plan Update. Page 2684 August 24, 1989 President Fox opened the Sewer Development Fees Public Hearing, and Secretary/General Manager William Workman provided the proof of public hearing notice. No correspondence or petitions on the matter had been received. President Fox requested testimony, beginning with a report by Executive Assistant to the General Manager Robb Quincey. Mr. Quincey reported that the Sewer related Development Fees were examined in the recently completed Yorba Linda Water and Sewer Development Fee Study. He further stated that the study concluded that certain sewer related development fees need to be adjusted as a result of cost increases in labor, supplies and services. Mr. Quincey stated that the District's existing sewer drainage fee program is continued, but with adjustments to different drainage areas' fees. He mentioned that the adjustments are based on the Updated Sewer Master Plan Study recently completed by the District's Sewer Engineer Sam Peterson. Mr. Quincey requested that Engineering Manager Mike Payne and Engineer Sam Peterson make several comments regarding the sewer drainage area study. Mr. Payne stated that the alternative to continuing the existing drainage fee program is to create one single District wide drainage fee program. He further stated that to do this would require direction from the Board for further study regarding the engineering, fiscal and legal aspects of creating a single District wide drainage fee program. Mr. Peterson mentioned to the Board that there were specific reasons for the drainage areas when they were established and he would recommend that the District stay with the specified drainage areas. He mentioned that the specified drainage areas allow for a clear calculation of what types of work remain to be completed in each area, and how revenue can be collected to accomplish this goal. Upon completion of Mr. Peterson's comments, President Fox requested testimony from the public and having received none, closed the public hearing. The Board discussed this issue at length, with specific regard to the concept of having one District wide drainage area versus the specified drainage areas as they exist today. Additionally, the Board discussed the averaging of fees and the means by which fees are calculated, and requested that the staff bring back to the Board a study of the drainage area issues, and the fee calculations attributable thereto within the next 120 days. On a motion by Director Knauft and seconded by Director Armstrong, the Board of Directors voted 5-0 to adopt the Sewer Master Plan Update and accept the Yorba Linda Water District Water and Sewer Development Fee Study. On a motion by Director Knauft and seconded by Director Cromwell, the Board voted 4-1(Korn: no) to adopt Resolutions 89-31 and 89-32 respectively, revising the District's Sewer Development Fee structure, and amending the District's Rules and Regulations with regard to Sewer Development Fees. Director Korn expressed a desire to have the fees averaged and to have the report on a District wide drainage area. Item 16. Consideration of Fiscal Year 1989-90 Standby/Availability Assessments for Improvement District No. 2. President Fox opened the Improvement District No. 2 Water Page 2685 August 24, 1989 Standby Assessment Public Hearing, and Secretary/General Manager William Workman provided the proof of public hearing notice. No correspondence or petitions on the matter had been received. President Fox requested testimony, beginning with a report by Assistant General Manager William Robertson. Mr. Robertson explained that the assessment of water standby charges, as authorized by the California Water Code is to equalize the tax burden for developed and underdeveloped land within Improvement District No. 2. Mr. Robertson further explained that as the California Water Code permits the District to fix water standby availability assessments within Improvement District No.2, the District entered into an agreement with BSI consultants to prepare an Engineer's Report for the District's assessments in I.D. No. 2. Mr. Robertson stated that the County of Orange was late in providing the necessary data to BSI for the purposes of preparing the assessment list; and accordingly, several modifications to the original report were made. Mr. Robertson reviewed that Engineer's Report which recommends a water standby assessment totaling $307,065.00 in order to raise sufficient revenue to pay principal and interest on Improvement District No. 2 General Obligation Bonds. He concluded by briefly reviewing the assessment levies for each zone of I.D. No. 2. President Fox requested testimony from the public, and heard from Mr. Bryan Johnson of The Pacific Company. Mr. Johnson stated that he had reviewed the assessments, and felt reasonably comfortable with the amounts. After a general discussion by the Board, on a motion by Director Armstrong and seconded by Director Knauft, the Board of Directors voted 5-0 to receive and accept the revised Engineer's Report on fiscal Year 1989-90 Water Standby/Availability Assessments for Improvement District No. 2. On a motion by Director Armstrong and seconded by Director Korn, the Board of Directors voted 5-0 to adopt Resolution 89-33 fixing a Water Standby Assessment for Fiscal Year 1989-90 within Improvement District No. 2; and authorize the President and Secretary to execute the Resolution. Item 17. Consideration of Sewer Maintenance Charge. President Fox opened the District Sewer Maintenance Charge Public Hearing, and Secretary/General Manager William Workman provided the proof of public hearing notice. No correspondence or petitions on the matter had been received. President Fox requested testimony, beginning with a report by Executive Assistant to the General Manager Robb Quincey. Mr. Quincey explained that the Sewer Maintenance 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. He stated that the Sewer Maintenance Charge Study was developed to evaluate and analyze current sewer maintenance expenses, and to propose options of which to balance the Sewer Operating Budget. He stated that as a result of increases in the cost of labor, supplies and services as well as the need to reduce reliance on interest allocations, three options were reviewed by the District's Finance Committee. Mr. Quincey stated that the Committee directed staff to present the Page 2686 August 24, 1989 option of increasing the existing fee from $21.00 per year to $23.00 per year to the Board for their consideration; and therefore, he reviewed the Sewer Operating Budget assuming a $23.00 per year charge. After a lengthy discussion regarding the staff presented options, and the Sewer Maintenance Charge concept is general, on a motion by Director Knauft and seconded by Director Armstrong, the Board of Directors voted 5-0 to receive and accept the Yorba Linda Water District Sewer Maintenance Charge Study. On a motion by Director Knauft and seconded by Director Armstrong, the Board of Directors voted 5-0 to adopt Ordinances 89-1 and 89-2 adjusting the annual Sewer Maintenance Charge to $23.00. GENERAL MANAGER'S REPORT Item 18. No General Manager's report scheduled; however, Mr. Workman did remind the Board of the upcoming District Annual Picnic on Saturday, August 26, 1989 starting at 11:30 a. m. LEGAL COUNSEL'S REPORT Item 19. No Legal Counsel's report scheduled; however, Attorney Arthur Kidman did request a closed session of the Board at the end of the meeting. STANDING COMMITTEE REPORTS Item 20. No Executive-Administrative-Organizational Committee report scheduled. Item 21. Report on Finance-Accounting Committee meeting of August 15, 1989. President Fox reported that the Sewer Maintenance Charge, Stand-by Charge, Sewer Drainage Fees, Water and Sewer Development Fees and Brighton Annexation Fees were discussed at this meeting. Item 22. Authorization for Payment of Bills. On a motion by Director Knauft and seconded by Director Fox, the Board of Directors voted 5-0 to approve the payment of bills and rate deposits in the amount of $442,293.79 on Check Nos. 17972 through 18059, and Payroll Check Nos. 3744 through 3810. Item 23. No Personnel Committee meeting report scheduled. Item 24. Report on Planning-Engineering-Operations Committee meeting of August 15, 1989. Director Armstrong reported that the District's new Telephone, Computer System Update, Sewer Drainage Fees, Water and Sewer Development Fees, Brighton Annexation and Telemetry Study were discussed at this meeting. Additionally, Mr. Armstrong noted an error in the minutes of the last meeting with regard to the Sam Peterson Sewer Facilities Plan Update. Item 25. No Personnel Committee meeting report scheduled. Page 2687 August 24, 1989 INTERGOVERNMENTAL MEETINGS Item 26. Report on CSDA meeting of August 11, 1989. Director Korn reported that the major item of discussion at this meeting concerned the development of a set of goals and/or mission for the CSDA. He stated that the organization thought such goals are essential prior to hiring the next Executive Director of CSDA. Item 27. Report on City Council meeting of August 15, 1989. Director Fox reported that the City is working with the North Orange County Community College District regarding the colleges' facilities. A possible school site is being contemplated by the agencies. Item 28. Report on MWDOC meeting of August 16, 1989. Director Knauft reported that this meeting was canceled. Item 29. Report on OCWD meeting of August 16, 1989. President Fox updated the Board with regard to the activities that the Orange County Water District is undertaking, and stated that OCWD General Manager William Mills is participating in a national groundwater committee. BOARD MEMBER COMMENTS Item 30. Director Armstrong: Director Armstrong requested from the staff an update regarding the Packinghouse project. Item 31. Director Cromwell: Director Cromwell reminded the Board of the upcoming Independent Special Districts of Orange County General Meeting on August 31, 1989. Item 32. Director Knauft: Director Knauft had no comments. Item 33. Vice President Korn: Vice President Korn had no comments. Item 34. President Fox: President Fox had no comments. CLOSED SESSION President Fox directed the Board into a closed session regarding a matter of potential litigation involving soils studies for a reservoir site. Upon return from closed session President Fox stated that no action was required on the matter of potential litigation. ADJOURNMENT On a motion by Director Korn Directors voted 5-0 to ad'ourn the ln6, William P. Workman General Manager/Secretary and seconded by Director Armstrong, the Board of ngeting at 11:02 a.m.