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HomeMy WebLinkAbout1989-03-09 - Board of Directors Meeting MinutesPage 2312 March 9, 1989 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING MARCH 9, 1969 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., March 9, 1989, in the District offices at 4622 Plumosa, Yorba Linda. Directors present were: Paul Armstrong, Whit Cromwell, Sterling Fox, Roy Knauft and Arthur C. 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 and Art Kidman, Legal Counsel. CONSENT CALENDAR After a brief discussion on how the District handles property dedications, on a motion by Director Cromwell and seconded by Director Armstrong, the Board of Directors voted 5-0 to approve the consent calendar as follows: Item 1. Approval of Minutes - Regular meeting of February 23, 1989. 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 Y. L. Brighton Associates II, a California general partnership by: Brighton Homes, a California Corporation Managing Partner, Tract No. 13485, located north of La Palma and east of Camino De Bryant, Job No. 8836, in the amount of $17,688.00. Item 4. Approval of Applications to and Agreements with Covington Technologies, Inc. for water service, Job No. 8837, in the amount of $28,017.00 and sanitary sewer service, Job No. S-8837, in the amount of $34,631.00. Item 5. Approval of Progress Payment No. 3 to F. T. Ziebarth Company, in the amount of $28,431.90 for construction of the Dual Use Reservoir, Job No. 8140. Item 6. Approval of purchase agreement for two 1 ton trucks from the G.M.C. Truck Center for $32,943.20. Item 7. Acceptance of the Financial Statements for the five months ended November 30, 1988. Page 2313 March 9, 1989 DISCUSSION CALENDAR Item 8. Consideration of new planning process. Engineering Manager Mike Payne presented a proposal for a revised planning and approval process. He explained that under the current process, the Board of Directors reviews a majority of the District's projects at the end of the planning process. The revised planning process is designed to obtain the Board's approval of Terms and Conditions for service early in the planning process. Engineering Manager Payne further explained that this new process will improve coordination with adjacent City Planning Departments, provide developers with definite upfront criteria for service, and afford the ability to stop projects early if a significant problem arises. He concluded by stating that staff believes that the four phase proposed planning process will allow both the staff and the developers to properly plan for the timely development of the water and or sewer system improvements within the District. The Board of Directors discussed the planning process at great length, including considerations that a Phase 5 be added to detail how jobs are closed as well as adding the Board of Directors in the appeal process for letters sent to the City requesting release or denial of occupancy permits. After the Board concluded their discussion, on a motion by Director Cromwell and seconded by Director Armstrong, the Board of Directors voted 5-0 to approve the revised planning and approval process with the addition of a Phase 5 for job closings and appeal process for letters of occupancy. Item 9. Consideration of Eureka Avenue Trunk Sewer Project. Engineering Manager Mike Payne explained that Palm Mesa Development is currently preparing plans to develop the parcel of land at the southerly end of Eureka Avenue, south of Yorba Linda Boulevard. In reviewing the location of the closest sewer line to provide service to this area, it was determined that the closest existing sewer line to this property is approximately 1400 feet away. Accordingly, Mr Payne explained, the developers have requested the District's assistance in bringing the sewers into the area of the developers property. Mr. Payne requested the Board's conceptual approval of the Eureka Trunk Sewer Project. Because the project has some unique service problems that need to be addressed, District participation would be appropriate. The development's location and lack of accessible trunk sewers can be overcome by construction of this project. Additionally, other residents on septic tanks could also connect to the project. Mr. Payne further explained that staff recommends that the developers handle the contracts for the design, the construction staking and the construction of this trunk sewer facility. He stated that this would allow the developer to construct both the offsite and onsite portions of the sewer, and then the District would provide the inspection of the trunk sewer main to ensure that the facility is installed to the District's standard specifications. Page 2314 March 9, 1989 He stated that the staff recommends that the District reimburse the developer for the construction costs for the trunk sewer portion only, in an estimated amount of $120,000.00. The Board participated in a lengthy discussion with regard to the sewer extension, specifically addressing the issues of the financing alternatives to the proposed District-Developer joint venture. Director Knauft questioned whether the District is not paying for more than it's fair share under the proposed agreement. After these discussions, on a motion by Director Cromwell and seconded by Director Korn, the Board of Directors voted 4-0 to approve the Eureka Avenue Trunk Sewer project concept. Director Knauft abstained. Item 10. Report on State Unemployment Insurance Code hearing provisions. Business Manager Cheryl Gunderson requested the Board's authorization to pursue legislative changes to the State Unemployment Insurance Code. She indicated that the District had recently been denied the right of appeal in an unemployment insurance case involving a former employee because of the District's status as a reimbursable base period employer. The former employee had been awarded payments under the State Code and the District had no method to protest the payments. Thus, it was proposed that the District, in cooperation with other similar agencies, seek a change to the Code to allow appeals. The Board discussed the feasibility of pursuing this legislative change alone as a District, or whether it should be undertaken in conjunction with a larger organization such as ACWA. On a motion by Director Knauft and seconded by Director Korn, the Board of Directors voted 5-0 to authorize the District to pursue the legislative changes to the State Unemployment Insurance Code regarding the right of appeals from Reimbursable Employers. Item 11. Approval to change individuals authorized for check signing and wire transfers. Business Manager Cheryl Gunderson stated that a new Resolution authorizing the use of the check signing machine with the signatures of Sterling Fox, the new Board President, and Bill Robertson, Assistant General Manager was required. The Resolution also identifies Cheryl Gunderson and Bill Robertson as those persons authorized to wire funds through the federal wire system. After a brief discussion, on a motion by Director Knauft and seconded by Director Cromwell, the Board of Directors voted 5-0 to adopt Resolution 89-4 designating personnel to sign checks and transfer District funds. Item 12. Consideration of computer room construction. Executive Assistant to the General Manager Robb Quincey stated that on January 12, 1989, the Board approved the acquisition of the District's computer system, and authorized the construction of a computer room. Since that time, Mr. Quincey explained that staff, in conjunction with the Danielson Design Group, the designers for the proposed building remodel, have developed a computer room that meets requirements for computer maintenance access and working space, while also conforming to plans for the proposed building remodel. Page 2315 March 9, 1989 Mr. Quincey stated that bids for the computer room's construction were received as follows: E-M Construction - $11,500.00, Forcier Construction - $15,900.00, and Hanna Construction - $18,700.00. Each were evaluated in terms of their overall qualifications: experience in computer room construction, bid completeness, references and price. Based upon this evaluation, Mr. Quincey explained that the staff was recommending Forcier Construction for the project, as they fully met the bid evaluation criteria, have been involved in computer room construction in the past, have good references and are the lowest price bidder for those presenting a complete bid. After a general discussion among the Board regarding the room construction, the costs and the status of computer delivery, on a motion by Director Armstrong and seconded by Director Knauft, the Board of Directors voted 5-0 to approve a contract with Forcier Construction in the amount of $15,900.00 for construction of the District's computer room; authorize the allocation of $10,900.00 from the Unappropriated Water Capital Fund for this project; and authorize the President and Secretary to execute the construction agreement. Item 13. Preliminary report on Allen-McColloch Pipeline (AMP) Agreement Amendment No. 5. Assistant General Manager William Robertson reported that the Municipal Water District of Orange County (MWDOC) and the AMP participants have been jointly working on an agreement to increase the capacity of the AMP line to supply more water to participants and temporarily supply imported water to deficient areas in south Orange County. Mr. Robertson reviewed the fact that under the proposed agreement, the District will receive 3.0 cfs of additional AMP water at a cost of $236,000.00. Additionally, he explained that due to reallocation of existing AMP project costs, the District will also receive a cash reimbursement of $172,000.00 plus possible lease payments. Mr. Robertson stated there is a question of whether or not the District wants to consider the 3.0 cfs that they would receive under the proposed agreement, as a marketable commodity at the end of the proposed project. He stated that considering capacity as a marketable commodity is a business decision of the Board that affects financial participation in the project from source of supply all of the way through to it's point of use. Mr. Kidman reviewed the basis of costs for the project in terms of reach capacity basis, and headworks costs. Mr. Kidman reviewed the phases required of the project, and proceeded to discuss the marketability of the 3.0 cfs to the District. He stated that given the proposed agreement for 3.0 cfs at the end of reach one, the water's marketability is reduced because others could not use it. So as to make the 3.0 cfs marketable, it would need to be applied throughout reaches 2-6 of the project. He stated that if the District decided not to acquire the additional 3.0 cfs of water, under the proposed agreement, the District is subject to receiving a refund of $408,000.00. If Page 2316 March 9, 1989 the additional capacity obtained was calculated on a reach basis, instead of the planned headworks basis, the District may be subject to receiving a refund of $496,000.00. Additionally, if the District chooses to accept the additional 3.0 cfs of water, it still is in a refund position, possibly in the amount of $172,000.00. Again, if the water basis was established based upon reach instead of headworks basis, the District may be subject to receiving approximately $251,000.00 for their participation. He concluded his comments by stating that there is a remote possibility that the Metropolitan Water District may desire to lease this 3.0 cfs from the District in the future, assuming the District chose to accept and hold the 3.0 cfs of water in the interim. This lease could net the District an additional $276,000.00 of revenue in the future. The Board of Directors discussed this issue at length, with specific regard to whether or not the District will ever be in a position to actually need the additional 3.0 cfs of water in question. They reviewed the current use of water in the District, and discussed the growth and its effects on water consumption in the area. Also discussed, were costs that might be attributable to developing reaches 2-6 of the project, if required to make the 3.0 cfs in question a marketable quantity under the existing proposal. In closing, the Board directed Mr. Kidman to pursue the reach capacity basis of allocation instead of the proposed headworks basis of allocation presently proposed. Additionally, they requested that Assistant General Manager Robertson obtain operations and maintenance costs related to this project, so that better estimates of returns and refunds might be established. ftem 14. Quarterly report to the Board on the status of departmental projects as defined in the 1988-89 Budget. Assistant Administrator Mike Robinson presented an audio-visual presentation describing the past quarter's progress towards meeting the objectives outlined in the 1988-89 Annual Budget. He also briefly reviewed the Capital Improvements and replacement projects that are currently underway. The Board discussed with the staff questions concerning backflow inspections, risk management, the District's emergency preparedness plan, water audits, the District's construction program, the vehicle replacement program, upgrade of Well No. 7 and the District's Lakeview sewer lift station. GENERAL MANAGER'S REPORT Mem 15. Consideration of increasing District contribution to California Care Health Insurance Plan. General Manager William Workman explained that the District's HMO California Care Health Insurance rose 21.4% January 1, 1989. This placed an unanticipated economic bind on employees enrolled in this plan. Mr. Workman briefly reviewed the existing monthly costs to an employee on the plan, and the cost under the recently enacted increase. He indicated that by adjusting the District's contribution to the California Care Plan from $93.74 to $102.94 for employee only, and $117.84 to $119.54 for multiple dependents, the cost to the employee of the unexpected rise in health insurance cost could be mitigated. Director Cromwell questioned whether the District should assume the fiscal impact of the health care cost increases, in lieu of the employees Page 2317 March 9, 1989 paying for the increase on their own. On a motion by Director Knauft and seconded by Director Armstrong, the Board of Directors voted 5-0 to approve the letter agreement with the Teamsters and modify the MSC Compensation Letter to increase the District's contribution to the California Care Health Insurance Plan. Item 16. Report on Goals Workshop. General Manager William Workman stated that the Board's Special Subcommittee assigned to develop the Goal-Setting Workshop had met and prepared an agenda and format for the session. The session will be held on March 23, 1989 at 1:30 p.m. The session will focus on issues confronting the District, potential crisis points and formulation of goals for the next year, five years and the year 2000. The Board indicated its concurance with the agenda and format. LEGAL COUNSEL'S REPORT Item 17. Status report on Packing House construction. Legal Counsel Art Kidman reviewed the course of action that the Board of Directors took at their February 9, 1989 meeting with regard to this issue. He stated that since that time, the City and District have become satisfied that the footings of the building that were in question, do comply with building specifications and therefore, should not now pose an immediate threat to the District's 20" water main. Attorney Kidman reviewed the fact that the Stop Work Order that was placed on this project has been lifted, and that he is moving forward with the paper work that has transpired as a result of this issue. Attorney Kidman reported that Mr. Kavli's attorney and himself have corresponded with regard to the issues of liability in the future, existing integrity of pipe and the easement description of the property. The Board of Directors requested that Attorney Kidman pursue the issues that are of significance to the District, and advise them if any problems arise in the future. STANDING COMMfffEE REPORTS Item 18. No Executive-Administrative-Organizational Committee report was scheduled. Item 19. No Finance Committee report was scheduled; however, a meeting was scheduled for Tuesday, March 14, 1989 at 3:00 p.m. Item 20. 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 payment of bills and rate deposits in the amount of $154,589.46 on Check Nos. 16664 through 16732, and one wire dated March 14, 1989 to MWDOC in the amount of $105,703.93. Item 21. No Personnel Committee report was scheduled. Item 22. Report on Planning-Operations-Engineering Committee report of February 28, 1989. The Committee reported it reviewed the building renovation plans, computer Hage 2318 March 9, 1989 system status, proposed computer room, radio system status, G.E. bond dispute, Plant No. 1's proposed Master Plan, the proposed Eureka Avenue Project, a pipeline relocation policy, the Santiago Pipeline, Packinghouse update, ID #2 agreement, AMP status report and DI-02 update. item 23. No Public Information Committee report was scheduled. INTERGOVERNMENTAL MEETINGS Item 24. Report on MWDOC meeting of March 1, 1989. Director Knauft reported that he attended the meeting; however, nothing of significance to the District was discussed. Item 25. Report on WACO meeting of March 3, 1989. Director Knauft reported that the Bay Delta Hearings and a presentation by the Orange County Sanitation District were discussed. Item 26. ACWA County Water Districts Section Miniconference of March 3-4, 1989. President Fox reported that the miniconference was quite interesting with such issues as the lining of the Coachella Valley, green house affect and water conservation being of the significance to the District. Vice President Korn left the Board Meeting at 11:28 a.m. to attend a CSDA meeting. Item 27. Report on City Council meeting of March 7, 1989. Director Cromwell reported that he attended the meeting; however, the meeting was very short with nothing of significance to the District being discussed. ADJOURNMENT On a motion by Director Knauft and seconded by Director Armstrong, the Board of Directors voted 4-0 to adjourn the meeting at 11:37 a. m. William P. Workman General Manager/Secretary