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HomeMy WebLinkAbout1988-09-07 - Board of Directors Meeting MinutesPage 2243 September 7, 1988 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS ADJOURNED MEETING SEPTEMBER 7, 1988 The adjourned meeting of the Board of Directors of the Yorba Linda Water District was called to order by President Armstrong at 8:30 a.m., September 7, 1988, in the District offices at 4622 Plumosa, Yorba Linda. Directors present were: Paul Armstrong, Whit Cromwell, Sterling Fox, and Roy Knauft. Also present were: William P. Workman, General Manager, William J. Robertson, Assistant General Manager, Robb Quincey, Executive Assistant to the General Manager, Michael Payne, Engineering Manager, Cheryl Gunderson, Business Manager, Michael Robinson, Assistant Administrator, Ray Harsma, Operations Superintendent, Art Kidman, Legal Counsel, and Kathleen Eager, Customer Service Supervisor. Director Korn was absent. CONSENT CALENDAR On a motion by Vice President Fox and seconded by Director Cromwell, the Board voted 4-0 to approve the Consent Calendar as follows: Item 1. Approval of Minutes - Regular Meeting of August 25, 1988. Item 2. Authorization for the Directors to leave the State of California prior to next meeting. Item 3. Approval of Application to and Agreement for Water Service with Upper K-Shapell Joint Venture for Tract No. 10606, Job No. 1169, in the amount of $28,811.00, located east of Fairmont Boulevard and south of Paseo De Las Palomas and approval of the allocation of $71,535.00 from the unappropriated Capital Improvement Fund balance for ID #1 to meet reimbursement obligations for this project. Item 4. Approval for water and sewer service, Job No. 8808 with Hostert Development & Construction Co., Tract No. 13130, located in the southwest corner of Short Street and Kellogg Drive, water fees in the amount of $20,936.46 and sewer fees in the amount of $9,973.00. Item 5. Approval for Application to and Agreement for Water Service, Job No. 8740, in the amount of $9,018.04 and Sewer Connection Application and Permit, Service No. 32-773, in the amount of $7,648.88 with Aldorado Corp., in the northeast corner of Richfield Road and Orangethorpe Avenue. DISCUSSION CALENDAR Item 6. Awarding of the construction contract 'and consideration of agreements for construction services for the Dual Use Reservoir. Engineering Manager Michael Payne explained that the District received seven bids to construct the 1.1 million gallon Dual Use Reservoir located north of Tract No. 10504 (Hidden Hills) at the M.W.D. Santiago lateral turn out. Page 2244 September 7, 1988 The bids received for the construction of the Reservoir were: F. T. Ziebarth Company SSC Construction G.A. MacDonald Pascal and Ludwig G.B. Cooke Kiewitt Pacific Pacific Mechanical $928,900.00 995,500.00 1,035,800.00 1,073,900.00 1,087,975.00 1,144,517.00 1,279,000.00 Mr. Payne recommended that the Board of Directors award the construction contract for the Dual Use Reservoir to F. T. Ziebarth. The Engineering Department was satisfied with the Ziebarth references and experience. Mr. Payne further explained that the staff had solicited proposals for construction management and inspection services, soils testing and cement testing. Construction management and inspection proposals were received from IWA Engineers ($90,950.00) and James M. Montgomery ($109,150.00). Mr. Payne explained that staff evaluated the proposals based on such criteria as responsiveness to proposal, relative experience, references and fees. Based upon this analysis and the fact that staff acknowledges Montgomery's experience with similar jobs and the experience of the project team, staff believes that this offsets the higher management and inspection cost. Mr. Payne also indicated that as Montgomery provided the plans and specifications for the Dual Use Reservoir and have provided services on other District water facilities, they are familiar with the District and may provide better coordination for the project. He indicated that the P.O.E. Committee reviewed this project at their meeting on August 25, 1988; and the staff therefore, recommended that the Board enter into an agreement with James M. Montgomery in the amount of $109,150.00 for construction management and inspection services for the Dual Use Reservoir. The Board extensively discussed the construction contract and the management and inspection services. Much of the discussion concerned the fact that Montgomery was bidding a cost of $18,200.00 more than IWA. The Board discussed the fact that Montgomery has worked on a number of District projects and has always provided good work. However, other companies seem to be more competitively priced. IWA Engineers was discussed, and Mr. Payne explained that they were only recently awarded the contract for the Chino Hills Reservoir work; and therefore, the District has never been in a position to evaluate their work. Mr. Payne again reiterated and acknowledged the cost differences, but stated that staff felt that Montgomery may be better suited for the work; however, the staff would take whatever direction the Board provided. Mr. Payne then explained that the figures cited in the agenda report concerning soils and cement testing were incorrect and he, therefore, needed to withdraw that portion of the agenda report. He explained that in accordance with CEQA guidelines, the staff had compiled the environmental checklist, prepared a Negative Declaration and posted the necessary notices pertaining to this project. a I Page 2245 September 7, 1988 Mr. Payne concluded by stating that the Dual Use Reservoir is being funded by Improvement District No. 1 (52%) and Improvement District No. 2 (48%). $600,000.00 of the engineer's $1,217,000.00 estimate is identified in the budget for fiscal year 1988-89. The Board again discussed the cost differential in management and inspection services, and agreed to defer this issue and the soils and cement testing issue to the P.O.E. Committee. A report on the contracts would be returned at the September 22 meeting. On a motion by President Armstrong and seconded by Director Cromwell, the Board voted 4-0 to award the $928,900.00 construction contract for the Dual Use Reservoir to F.T. Ziebarth, and approve the Negative Declaration. Rem 7. Report on the proposed budget and construction management services for the Dual Use Pipeline. Engineering Manager Mike Payne presented a request to the Board for approval of the construction budget for the Dual Use Pipeline. He explained that the overall scope of the project includes the extension of approximately 2850 linear feet of 14" diameter steel pipeline from Hidden Hills Road northerly to the proposed Dual Use Reservoir Pump Station site, and approximately 450 linear feet of 12" diameter steel drain line. Mr. Payne explained that A.W. Associates, the developer for this project, has submitted a proposed construction budget in the amount of $358,584.25. He also indicated that staff has received a proposal from James M. Montgomery, Inc. in the amount of $11,100.00 for construction management and inspection services for this pipeline project. Mr. Payne concluded by recommending that the Board enter into an agreement with Montgomery in the amount of $11,100.00 for construction management and inspection services, and approve the A.W. Associates construction budget. He explained that the entire project is being funded by Improvement District No. 2 General Obligation Bonds, and that $225,000.00 has been allocated in the 1988-89 Annual Budget for this project. He indicated that staff recommended that $69,463.81 be allocated from the unappropriated Capital Improvement Fund balance for ID #1 and $64,120.46 from ID #2, coupled with the budgeted amount of $225,000.00 to meet this $358,584.25 expense. After a general discussion regarding this project, on a motion by Vice President Fox and seconded by Director Knauft, the Board voted 4-0 to approve the proposed construction budget in the amount of $358,584.28; approve the construction management and inspection agreement with James M. Montgomery, Inc. in the amount of $11,100; and authorize the President and Secretary to execute the documents and approve an additional allocation of $133,584.28 from the unappropriated Capital Improvement Fund balance for ID #1 and #2. Item 8. Consideration of computer proposals. Robb Quincey, Executive Assistant to the General Manager, made an extensive presentation concerning the proposed computer system for the District. He explained that as a result of the District's Request for Proposal for a Computer System, which was approved on May 5, 1988, the District received six proposals. The vendors choosing to participate in the selection process were Hewlett Packard/CMSI, IBM/BRC, Ultimate Corp./Digital Equipment/MMI, IBM/OR(.'QM, NCR/Eden Systems and IBM/HTE. Page 2246 September 7, 1988 Mr. Quincey explained that in conjunction with a consultant from Arthur Young and Company, the staff thoroughly evaluated each of the six proposals in accordance with the evaluation and selection criteria outlined in the Request for Proposal. He indicated that the staff made extensive use of the required vendor reference list to elicit user feedback regarding the proposed systems. Mr. Quincey stated that as a result of the aforementioned evaluation processes, and in conjunction with the P.O.E. Committee which held a meeting on this issue on July 28, 1988, the three vendors who received the highest scores and were chosen to participate in final evaluation were Ultimate/Digital Equipment and MMI, NCR/Eden Systems and IBM/HTE. Pursuant to the Request for Proposal requirements, these three vendors were further evaluated, including vendor presentations and site visits to the vendor's in-place system at a current customer. Mr. Quincey explained that staff viewed demonstrations at the offices of the three finalists, and while again contacting a variety of users, made arrangements to visit one site of each vendor where an in-place system was operating. Staff visited the Mission Springs Water District in Desert Hot Springs to further evaluate the Ultimate/Digital and MMI System, the City of Barstow for the NCR/Eden Systems, and the City of Ridgecrest for the IBM/HTE System. The staff presented its findings to the P.O.E. Committee at the August 25, 1988 meeting and concluded that the Digital/Ultimate Corp. and MMI proposal scored highest and best met the needs of the District. Mr. Quincey went on to explain that on August 29, 1988 the P.O.E. Committee and staff attended another demonstration by Ultimate/Digital Equipment and MMI to confirm the findings regarding the computer system. He noted that after the demonstration, the Committee discussed the finalist including the facts that the mini computer proposed is manufactured by Digital, but modified by the Ultimate Corporation, and that maintenance of the computer equipment was proposed to be provided under contract with Honeywell Corporation. The Committee discussed the proposed system's strengths and an alternate that was proposed. After which, the Committee and staff again concluded that the Ultimate/MMI proposal with the 3030 System best met the requirements of the District's RFP. Mr. Quincey reviewed what the entire proposal included and briefly reviewed the companies involved; Digital, Ultimate and MMI. He concluded by stating that $210,000.00 was allocated in the 1988-89 District Annual Budget for this project, and that the proposals ranged from $222,287.00 to $379,180.00. The proposals were as follows: Hewlett Packard & CMSI $222,287.00 IBM & BRC $290,635.00 Ultimate/Digital Equip $299,644.00 MMI Management Systems IBM & ORCOM $305,313.00 NCR & Eden Systems $313,029.00 IBM & HTE $379,180.00 Page 2247 September 7, 1988 The proposal that best meets the District's needs is from Ultimate Corporation and MMI, and is priced at $299,644.00. The Board of Directors extensively discussed this issue. Questions concerning the cost were examined, and Mr. Quincey explained that micro chip and related electronics equipment component shortages have caused prices to increase. Additionally, General Manager William Workman noted that the proposed $299,644.00 system included optional software which most likely would not be needed in the fiscal year 1988-89, and would, therefore, be phased in at a later date. Additionally, Mr. Workman stated that staff would be investigating other financing options such as leases to fully address the cost issue. The Board of Directors further discussed the PICK operating system and the fact that the mini computer proposed is a Digital Equipment piece of hardware, modified and renamed Ultimate Model 3030. After this discussion, on a motion by President Armstrong and seconded by Vice President Fox, the Board voted 4-0 to authorize staff to negotiate a contract with MMI Management Systems to purchase and implement Ultimate Corporation's Model 3030 mini computer and related automation equipment, and MMI software. Upon completion of the negotiation process, the staff will be returning to the Board for final approval to execute the contract. GENERAL MANAGER'S REPORT Item 9. Report on November 1988 Board of Directors Election. General Manager William Workman requested the Board of Directors to order the cancellation of the November 1988 election and request the County of Orange Board of Supervisors to appoint Roy Knauft and Arthur C. Korn to the Board of Directors. Mr. Workman explained that only the incumbents filed for each Director position. Consequently, Election Code Section 23520 requires that the election be cancelled and the Board of Supervisors appoint the two candidates. He explained that the District budgeted $5,400 for the cost associated with the election, and that all or most of this cost will be saved as a result of the cancelled election. After a general discussion, on a motion by Director Cromwell and seconded by Vice President Fox, the Board voted 3-0, Knauft abstaining, to adopt Resolution 88-37 ordering that the November 8, 1988 election of Directors not be held and request the Board of Supervisors appoint Roy Knauft and Arthur C. Korn to the Board of Directors. STANDING COMMITTEE REPORTS Item 10. No Executive Committee report was scheduled. item 11. No Finance-Accounting Committee report was scheduled. Page 2248 September 7, 1988 Item 12 Authorization for payment of bills. On a motion by Director Knauft and seconded by Vice President Fox, the Board voted 4-0 to approve payment of bills and rate deposits in the amount of $347,015.15 on Checks No. 15283 through 15449 and 15501, Payroll Checks No. 1981 through 2047 and one wire dated September 13, 1988, to MWDOC in the amount of $234,642.05. Item 13. No Personnel Committee report was scheduled. Item 14. No Planning-Operations-Engineering Committee report, as the meeting of August 25 was discussed previously in Item 8. Item 15. No Planning-Operations-Engineering Committee report, as the meeting of August 29 was discussed previously in Item 8. Item 16. Report on Public Information Committee meeting of August 31. Director Cromwell reported that a presentation was made at this meeting regarding the plans for installing drought tolerant landscaping at the District's Fairmont Reservoir. He stated that the Committee felt that it would be appropriate to ask the planners to make a presentation to the Board of Directors, outlining their detailed set of plans for this project. Mike Robinson, Assistant Administrator, noted that while the estimated cost of the project is $12,563.77, the actual cost may be substantially lower as wholesale plant costs may be available to the District. INTERGOVERNMENTAL MEETINGS Rem IT Report on WACO meeting of September 7. President Armstrong stated that the drought issue was extensively discussed, as well as plans to penalize districts who utilize and draw more water than allocated to them. Hearings will begin soon to address this issue. Mr. Armstrong indicated that OCWD General Manager Bill Mills made a slide presentation on the Santa Ana River, outlining issues such as whether sewage is flowing into Lake Elsinore, which inevitably would enter the Santa Ana River. Mr. Armstrong concluded by reminding the Board of the upcoming WACO dinner on September 14, 1988. Item 18. Report on City Council meeting of September 6. Vice President Fox reported that the issues of discussion at this meeting concerned lights on local tennis courts and proposed residence inns. ADJOURNMENT On a motion by Director Knauft and seconded by Vice President Fox, the Board voted 4-0 to adjourn the meeting. fWilliam P. Workman General Manager/Secretary