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HomeMy WebLinkAbout1989-03-23 - Board of Directors Meeting MinutesPage 2319 March 23, 1989 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 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 23, 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 4uincey, Executive Assistant to the General Manager, Mike Payne, Engineering Manager, Cheryl Gunderson, Business Manager, Mike Robinson, Assistant Administrator, Ray Harsma, Operations Superintendent, Don Gillis with Danielson Design Group, and Nancy Cartwright with Cartwright and Associates. CONSENT CALENDAR After a brief discussion of the water facilities installed in Yorba Linda Boulevard east of Village Center Drive, and a request to place future financial statements on the discussion calendar, on a motion by Director Armstrong and seconded by Director Cromwell, the Board of Directors voted 5-0 to approve the consent calendar as follows: Item 1. Approval of Minutes - Regular meeting of March 9, 1989. Item 2. Authorization for the Directors to leave the State of California prior to next meeting. Item Approval of releasing the Guarantee Bonds for S-8524 with L.B.S Pipeline Contractors, Tract No. 10120 with Shapell/Upper K Joint Venture and with C.W. Associates. Item 4. Approval of releasing the Guarantee Bond for Tract No. 11923 with Yorba Linda Properties, LTD. Item 5. Approval of Progress Payment No. 4 to F. T. Ziebarth Company, in the amount of $35,835.30 and approve Change Order No. 3, granting an eight calendar day time extension for construction of the Santiago Reservoir, Job No. 8140. Item 6. Approval of Application to and Agreement for Water Service with F.K.C. Partners, Job No. 8832, in the amount of $1,642.00, located at Fairmont Boulevard and Fairmont Connector; and approval of the allocation of $12,300.00 from the unappropriated Capital Page 2320 March 23, 1989 Improvement Fund balance for ID #1 to meet reimbursement obligations for this project. Rem 7. Approval of reimbursement costs to the William Lyon Co. for capital facilities constructed in Yorba Linda Boulevard and Village Center Drive, Job No. 1052, in the amount of $39,000.00. them & Approval of payment for damage claim submitted by Mr. Dennis Walters in the amount of $40.00. Item 9. Acceptance of the Financial Statements for the five months ended December 31, 1988. PRESENTATION Rem 10. Presentation by Larry Kraemer, Director, Orange County Water District. Mr. Kraemer was not present. President Fox requested that consideration of District Headquarters renovation plans be acted on next by the Board. GENERAL MANAGERS REPORT Item 20. Consideration of District Headquarters renovation plans. General Manager William Workman reported that the Board of Directors had made the decision to renovate the District Headquarters at the December 22, 1988 meeting. Mr. Workman indicated that the Danielson Design Group had drawn plans and completed a detailed renovation cost estimate for the project totaling $417,893.00. William Robertson, Assistant General Manager, described the need to relocate part or all of the employees from the Headquarters during the renovation. The cost could range from $18,000.00 to $34,000.00 for telephones, cabling, equipment and trailers or lease space depending on what relocation plan was chosen by the Board. The Board expressed a desire to relocate everyone out of the building during construction, however, the decision would be made when firmer costs were available. Business Manager Cheryl Gunderson described the financing options available to the district for the project and recommended using certificates of participation through the California Special District's Financing Corporation. The Board discussed three finance options and the various Interest rates for each. Don Gillis, from Danielson Design Group, reviewed the proposed building floor plan, significant structural changes, the door and window arrangements, air-conditioning and Page 2321 March 23, 1989 building code requirements. Nancy Cartwright, from Cartwright and Associates, reviewed the office locations, types and colors of furniture and equipment, and floor coverings. The Board discussed the renovation plans at length with the staff, Mr. Gillis and Ms. Cartwright, focusing on a variety of questions concerning he floor plan, materials and open office space furniture. After this discussion, on a motion by Director Armstrong and seconded by President Fox, the Board voted 5-0 to: (1) approve the District Headquarters plans and authorize the staff to proceed with the renovation project and purchase of Hayworth open office space furniture; (2) use the instead of carpet for the entry; (3) approve the allocation of $18,000 from the unappropriated Water Operating Fund for temporary relocation costs; and (4) approve the CSDA Financing Corporation financing option for the project. DISCUSSION CALENDAR [heat 11. Consideration of the proposed construction budget for the tie-in of the Santiago Project. Engineering Manager Mike Payne explained that a revision to the construction budget for the Santiago pipeline for the connection of the Zone 5 pipeline in Hidden Hills Road and the Zone 5 Hidden Hills Booster Station was needed in order to boost water up to the hydraulic gradient of 1000 feet for the Santiago Reservoir, as well as supplying the increased requirements to development and grading projects northeast of Hidden Hills Road. Mr. Payne further explained that the developer has submitted a construction estimate for the additional work, and an estimate for a needed venturi type meter replacement. He stated that the staff has reviewed the estimates, and would recommend that the work be conducted on a time and materials basis with a cost not to exceed $132,694.00. After a brief discussion by the Board of Directors concerning the proposed meter and the amount of water being pumped from the Hidden Hills Booster Station, on a motion by Director Cromwell and seconded by Director Korn, the Board voted 5-0 to approve the proposed construction budget for the additional work to tie-in the Santiago Pipeline to the Zone 5 Hidden Hills Road pipeline and the Hidden Hills booster Station, including the installation of a venturi meter in an amount not to exceed $132,694 and to approve $132,694.00 from the unappropriated Capital Improvement fund balance to fund the project. them 12 Consideration of amendments to the Rules and Regulations for Rendition of Water and Sewer Service pertaining to payment.of development fees and the dedication of easements. Engineering Manager Mike Payne requested that the Board formally adopt a policy requiring developers to pay all fees and dedicate all necessary easements prior Page 2322 March 23, 1989 to the General Manager signing the water and sewer improvement plans or issuing permits. After a brief discussion, on a motion by Vice-President Korn and seconded by Director Armstrong, the Board of Directors voted 5-0 to adopt Resolution No. 89-5 amending the District's Water and Sewer Rules and Regulations. h m 13. Authorization to solicit proposals for the construction bidding of the Fairmont Pump Station modifications. Mike Payne, Engineering Manager, explained that the plans and specifications for the Fairmont Pump Station modifications, located at 4150 1/2 Fairmont Boulevard, are now complete and ready for construction proposals. After a brief discussion regarding the sizing of pipe going into and out of the Fairmont Pump Station, on a motion by Director Cromwell and seconded by Vice President Kom, the Board of Directors voted 5-0 to authorize the staff to solicit proposals for the modifications of the Fairmont Pump Station, Job No. 8916. Item 14. Report on Electric Motor Maintenance Program. Operations Superintendent Ray Harsma explained that the District uses a combination of electric motors and gas engines for pumping and boosting water. Mr. Harsma reported that an electric motor repair and replacement study was completed. He indicated that the District's current maintenance and repair program extended the life of electric motors to ten years. At the end of ten years, the motors are overhauled and then placed back into service for another ten years. Consequently, a formalized replacement program is not necessary. The Board of Directors accepted the report after a brief discussion concerning the status of several of the District's wells and the engines operation. Item 15. Report on Diemer Plant Shut-down, March 28-29. Operations Superintendent Ray Harsma made a short presentation concerning the scheduled Diemer Treatment Plant maintenance shut-down. He staged that the District should have adequate storage during this two day period, March 28-29. Mr. Harsma explained that the District was seeking a major reduction in water consumption by customers during this period. Item 16. Executive Assistant to the General Manager Robb Quincey requested the Board's authorization to submit a proposal to the City seeking an adjustment to the sewer rate paid by the City for sewer maintenance. Mr. Quincey reviewed the District's sewer maintenance program, a comparison of City and District fees, and the justifications for the rate increase. The Board extensively discussed the operation and financing of the sewer maintenance program. It was concluded that a rate increase was necessary in order to continue to provide the required level of service to the City. On a motion by Director Cromwell and seconded by Director Knauft, the Board of Directors voted 5-0 to authorize the submittal of a proposal to the City of Yorba Linda Page 2323 March 23, 1989 adjusting the contract sewer maintenance rate to $0.14 per linear foot for the period of July 1, 1989 through June 30, 1990. them 17. Report on a RFP for the Plant No. 1 Master Plan. Executive Assistant to the General Manager Robb Quincey explained that many of the buildings and equipment at Plant No. 1 are in need of replacement or updating. He stated that prior to any new investment at Plant No. 1, the District needs to complete a Master Plan for the property. Mr. Quincey explained that a Master Plan should encompass a technical element and a land use element. He reviewed a recommended Request for Proposal for a technical element stating that it seeks a report that will examine the feasibility of a "single-lift" water pumping operation versus a "double-lift system and other options available for enhancing the District's long term production at this facility. The completed technical element would permit the District to next move ahead on completion of the land use element of the Master Plan. On a motion by Director Armstrong and seconded by Director Cromwell, the Board of Directors voted 5-0 to approve the Request for Proposal for an evaluation of the operational aspects of the District's existing water production facilities, and authorize staff to seek proposals for this project. hem 18. Consideration of alternatives to bond requirements for the District computer system. Executive Assistant to the General Manager Robb Quincey stated that MMI has been attempting to secure the labor materials and performance bonds for the computer system proposed for the District, but given the small proprietary nature of their business of developing software, they are having difficulty in securing the bonds. He stated that the District's performance bond is not a legal requirement, but rather a tool to enforce timely completion of the project. Given that the liquidated damages clause of the executed computer contract should enforce a timely completion of the project and MMI's successful track record with other public agencies, the staff recommended that the performance bond requirement be dropped. Additionally, Mr. Quincey stated that given that the computer system is not a "public works" under the law, this project does not legally require a labor and materials bond. Again, based on MMI's track record and the liquidated damages clause of the executed computer contract, the staff recommended that the labor and materials bond also be dropped. Mr. Quincey concluded by recommending a letter of credit in the amount of $100,000.00 or a temporary assignment of Grant Deed on the personal residences of MMI's principal owner be substituted as alternatives to the bond requirements. Page 2324 March 23, 1989 The Board discussed the bonding options. On a motion by Director Armstrong and seconded by Director Knauft, the Board of Directors voted 5-0 to: (1) approve the elimination of the performance bond, and labor and materials bond requirement for the District's computer system purchase; and (2) authorize the General Manager and Legal Counsel to prepare and execute documents implementing alternatives to the bond requirements for the District computer system. item 19. JPIA Board of Directors Executive Committee Election. Assistant Administrator Mike Robinson explained that the Orange County Water District nominated Director Donn Hall and the Trabuco Canyon Water District nominated Director Charles Wall for the position of JPIA Executive Committee Director. Both agencies sought the District's endorsement of their candidate. After a brief discussion by the Board of Directors, the Board chose to support both Directors. On a motion by Director Armstrong and seconded by Director Knauft, the Board of Directors voted 5-0 to adopt Resolution 89-6 concurring in the nomination of Donn Hall to the Executive Committee, and voted 5-0 to adopt Resolution 89-7 concurring in the nomination of Charles Wall to the Executive Committee of the Association of California Water Agencies Joint Powers Insurance Authority. STANDING COMMff1EE REPORT Item 21. No Executive-Administrative-Organizational Committee meeting report was scheduled. Item 22 Report on Finance-Accounting Committee Meeting of March 14, 1989. President Fox reported that the Committee discussed the ID No. 2 Agreement financing, budget schedule, equipment and vehicle replacement program, computer bonding requirements, headquarters remodeling, City-District sewer fee study and related sewer maintenance fee proposal. Dom 23. Authorization for Payment of Bills. On a motion by Director Knauft and seconded by President Fox, the Board voted 4-0 to approve payment of bills and rate deposits in the amount of $268,430.54 on Check Nos. 16733 through 16934, Payroll Check Nos. 2411 through 3029 and one wire dated March 31, 1989 to ACWA in the amount of $10,534.45. Director Korn temporarily excused himself. Item 24. No Personnel Committee meeting report was scheduled; however, a meeting was scheduled. Item 25. Consideration of General Manager's evaluation and compensation adjustment. This item was held over for Closed Session. Page 2325 March 23, 1989 Item 26. No Planning-Operations-Engineering Committee meeting report was scheduled; however, a meeting was scheduled for March 29, 1989, at 8:30 a.m. Item 27. No Public Information Committee meeting report was scheduled; however, a meeting was scheduled for Tuesday, April 4, 1989, at 8:30 a.m. INTERGOVERNMENTAL MEETINGS hmn 28. Report on CSDA meeting of March 10, 1989. Vice-President Korn reported that he had attended this meeting; however, nothing of significance to the District was discussed. item 29. Report on Planning Commission Meeting of March 15, 1989. Director Cromwell reported that the entire meeting was devoted to discussing multiple story buildings. Item 30. Report on MWDOC Meeting of March 15, 1989. Director Knauft reported that the March 15th meeting was rescheduled for March 22, 1989. He further reported that nothing of significance to the District was discussed at this meeting. Item 31. Report on OCWD Meeting of March 16, 1989. President Fox reported that there was no District representative at this meeting. Item 32. Report on ISDOC Meeting of March 16, 1989. Director Cromwell reported that a slate of new officers were installed at this meeting, and the remainder of the meeting was devoted to discussing LAFCO. Rom 33. Report on City Council Meeting of March 21, 1989. President Fox reported that the property at the corner of Valley View and Yorba Linda Boulevard was discussed at length. CLOSED SESSION President Fox directed the Board into closed session to discuss a personnel matter. Upon return from closed session, President Fox indicated that a personnel matter was discussed and asked that Item 25 now be considered. Item 25. Consideration of General Manager's Evaluation and Compensation adjustment. After a brief discussion, on a motion by Director Cromwell and seconded by Director Armstrong, the Board of Directors voted 5-0 to adopt Resolution 89-8, adjusting the General Manager's salary to $73,000.00 annually. Page 2326 March 23, 1989 ADJOURNMENT On a motion by Director Knauft and seconded by Director Korn, the Board voted 5-0 to adjourn to 1:30 p.m. WORKSHOP -1:30 P.M. faem 34. Board of Director's Goals Workshop. President Fox called the meeting back to order. The Board of Directors discussed the direction of the District for the next year, 5 - years and 10 - years. Discussions focused on key areas of concern, crisis points and specific goals to work toward in the coming years. ADJOURNMENT On a motion by President Fox and seconded by Director Armstrong, the Board voted 5-0 to adjourn the meeting at 3:50 p.m. 0-a4VI f William P. Workman General Manaaer/S,