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HomeMy WebLinkAbout2009-06-11 - Board of Directors Meeting Minutes 2009-077 MINUTES OF THE ' YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING June 11, 2009 1. CALL TO ORDER The June 11, 2009 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 6:30 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT John W. Summerfield, President Ken Vecchiarelli, General Manager William R. Mills, Vice President Pat Grady, Asst General Manager Paul R. Armstrong Art Kidman, General Counsel Michael J. Beverage Steve Conklin, Engineering Manager Ric Collett Lee Cory, Operations Manager ' Diane Cyganik, Finance Director Gina Knight, Human Resources Mgr Cindy Botts, Management Analyst Annie Alexander, Executive Secretary 4. ADDITIONS/DELETIONS TO THE AGENDA There were no additions or deletions to the agenda. Mr. Vecchiarelli requested Item No. 7.2. be taken after Item No. 8.1. 5. PUBLIC COMMENTS None. 6. CONSENT CALENDAR On a motion by Director Beverage, seconded by Director Mills, the Board voted 5-0 to approve the Consent Calendar. 6.1. Minutes of the Regular Board of Directors Meeting Held May 28, 2009 Recommendation: That the Board of Directors approve the minutes as presented. 6.2 Minutes of the Board of Directors Workshop Meeting Held June 2, 2009 Recommendation: That the Board of Directors approve the ' minutes as presented. 6.3. Payment of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $660,297.11. 2009-078 6.4. Progress Payment No. 13 for the Highland Reservoir Replacement Project Recommendation: That the Board of Directors approve Progress ' Payment No. 13 in the net amount of $135,664.82 to Schuler Engineering Corporation and 10% retention of $15,073.87 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 7. ACTION CALENDAR 7.1. Opposition to Proposed Terms for Proposition 1A Borrowing by Governor Schwarzenegger and the Legislative Analyst's Office (LAO) Mr. Vecchiarelli introduced the item and explained that ACWA has requested its member agencies to send a letter to their local Assembly and Senate representatives urging them to oppose the terms of Proposition 1A borrowing as proposed by Governor Schwarzenegger and the LAO. Should the District's property tax revenue be diverted to the state, approximately $100,000 up to $300,000 in revenue would be lost. Director Mills made a motion to authorize the Board President to execute a letter to Senator Bob Huff and Assembly Member Curt Hagman opposing the terms of the Proposition 1A borrowing as proposed by ' Governor Schwarzenegger and the LAO. Director Collett requested that the letter also be sent to Assembly Member Michael Duvall. Director Mills amended his motion to include a letter to Assembly Member Michael Duvall. Director Beverage seconded the amended motion. The Board then voted 5-0 to authorize the Board President to execute a letter to Senator Bob Huff, Assembly Member Curt Hagman and Assembly Member Michael Duvall opposing the terms of the Proposition 1A borrowing as proposed by Governor Schwarzenegger and the LAO. 7.2. Setting a Public Hearing for a Pass Through Water Rate Increase Following discussion of Item No. 8.1., Mr. Vecchiarelli stated that staffs recommendation for this item had changed from what was printed in the agenda packet. Staff was now recommending that a public hearing be set for August 27, 2009 at 6:30 p.m. to consider a rate increase. On a motion by Director Collett, seconded by Director Mills, the Board voted 4-1, with Director Armstrong voting No, to set a public hearing for August 27, 2009 at 6:30 p.m. to considera rate increase. 2 2009-079 8. DISCUSSION ITEMS ' 8.1. Proposed Water Rate Increase Mr. Vecchiarelli explained that as discussed during the Board workshop meeting held June 2, 2009, the District was expecting a substantial shortfall in revenue and increase in expenses in the upcoming fiscal year due to mandatory water conservation, associated reduced water sales and escalating water supply costs. The Board decided at the workshop to pursue implementation of a proposed pass through rate increase effective July 1, 2009 to cover increased water supply costs. At the time, staff believed that a proposed pass through rate increase could be carried out under the authority of Resolution No. 07-17. Legal counsel has since advised that due to new legislation, District customers would need to be sent written notification of the proposed pass through rate increase 30 days prior to implementation. As a result, the July 1, 2009 effective date of the proposed pass through rate increase would need to be extended by approximately 2 weeks. Mr. Vecchiarelli then noted that the proposed pass through rate increase would only cover increased water supply costs and not the remaining budget deficit. In addition, if the District does not meet its water conservation goals for the next fiscal year, it can expect to receive up to $5.3M in penalties from MWDOC and OCWD. Mr. Vecchiarelli further explained that the Board also discussed a strategy for implementation of a tiered rate increase at the Board workshop meeting. Staff has reviewed its existing billing system and found that it would be possible to implement a tiered block rate increase effective September 1, 2009. Implementation of a new rate structure would require adherence to Prop 218 procedures. The Board then discussed the pros and cons of considering a pass through rate increase and a tiered block rate increase separately in July and September versus considering both rate increases in September. Following discussion, Mr. Vecchiarelli stated that staff was recommending that the Board consider both rate increases at a public hearing in August with a possible effective date in September. Item No. 7.2. was taken at this time but is reported under its respective position on the agenda. 8.2. Status of Hidden Hills Reservoir Project Mr. Conklin reported that rough excavation for the access road was now ' complete. Approximately 20-25 feet of soil has also been excavated in preparation for construction of the reservoir. Rough grading is expected to be completed within 2 weeks. 3 2009-080 9. REPORTS, INFORMATION ITEMS AND COMMENTS 9.1. President's Report , There was no report. 9.2. Directors' Reports Director Collett commented that it was possible the state would continue to charge a deposit on recyclable containers (CRV) but no longer provide a refund to consumers in order to help fund the state budget deficit. 9.3. General Manager's Report Mr. Vecchiarelli reported that articles regarding the District's water conservation ordinance were published in both the Yorba Linda Star and Placentia News Times. An All-Hands meeting was conducted the same day of the Board meeting. Staff was educated on the water conservation ordinance and changes in District technology. 9.4. General Counsel's Report There was no report. 9.5. Future Agenda Items and Staff Tasks Director Mills requested a report the status of water allocations. 10. COMMITTEE REPORTS ' 10.1. Executive-Administrative-Organizational Committee (Summerfield/Mills) Aliemate: Collett Meeting scheduled for June 16, 4:00 p.m. was rescheduled to 8:00 a.m. the same day. Director Collett will attend in place of Director Summerfield for the meeting scheduled July 21, 4:00 p.m. 10.2. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills Minutes of the meeting held June 9 were provided at the meeting. Directors Beverage and Summerfield attended. Items discussed during the meeting were as follows: FY 2008/09 Financial Audit; US Bank's Government Securities Treasury Fund; May 2009 Investment Portfolio Report; calls received by Customer Service regarding the April billing statement; and the previous water rate increase and related staff budget projections versus actuals. Meeting scheduled for July 14, 4:00 p.m. Director Mills will attend in place , of Director Summerfield. 4 2009-081 10.3. Personnel-Risk Management Committee ' (Armstrong/Collett) Alternate: Summerfield Minutes of the meeting held June 8 were provided at the meeting. Directors Armstrong and Collett attended. Items discussed during the meeting were as follows: proposed authorized positions for FY 2009/10; and status of recruitments and risk management activities. Meeting scheduled for July 13, 4:00 p.m. 10.4. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage Minutes of the meeting held June 4 were provided in the agenda packet. Directors Mills and Armstrong attended. Items discussed during the meeting were as follows: Sewer Connection Fee for Mr. John Pierson at 5922 Highland Avenue; use of membrane bioreactor technology for landscape irrigation; monthly groundwater production, purchased water and preventative maintenance program reports; monthly MWDOC Managers and OC Ground Water Producers meeting summary reports; and status of capital projects in progress. Meeting scheduled for July 2, 4:00 p.m. ' 10.5. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong Meeting scheduled for June 15, 9:00 a.m. 10.6. MWDOC/OCWD Ad Hoc Committee (Mills/Collett) Alternate: Summenreld Meeting scheduled for July 28, 4:00 p.m. 10.7. Revenues and Rates Ad Hoc Committee (Collett/Mills) Meeting to be scheduled. 10.8. City of Placentia Ad Hoc Committee (BeverageNecch iarel I i ) Minutes of the meeting held June 10 were provided at the meeting. Director Beverage attended. Items discussed during the meeting were as ' follows: increasing water supply costs and supply allocations; water conservation ordinance and public outreach; and the Placentia City sewer system. Meeting to be scheduled. 5 2009-082 10.9. Citizens Advisory Committee Minutes of the meeting held June 1 were provided in the agenda packet. ' Items discussed during the meeting were as follows: OC Water Summit on May 15, 2009; status of Conservation Ordinance and supporting public awareness materials; status of proposed FY 2009/10 budget and rates; future District facilities tour and OCWD GWRS tour; and capital improvement projects in progress and proposed future projects. Meeting scheduled for Jun 29, 8:30 a.m. Mr. Vecchiarelli reported that meetings of the Committee would now be held on a monthly basis. Tours of the MWD and GWR systems are in the process of being scheduled. Director Beverage requested staff to notify the Board when the MWDOC/MWD tour is scheduled. 11. INTERGOVERNMENTAL MEETINGS 11.1. Yorba Linda City Council, June 2 (Mills) Director Mills did not attend. 11.2. MWDOC/MWD Workshop, June 3 (Staff) Staff did not attend. ' 11.3. OCWD Board, June 3 (Staff) Staff did not attend. 11.4. Yorba Linda Planning Commission, June 10 (Collett) Director Collett did not attend. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from June 12, 2009 thru July 31, 2009 The Board reviewed the listed meetings. The Executive-Administrative- Organizational Committee meeting scheduled for June 16, 4:00 p.m. was rescheduled to 8:00 a.m. the same day. 13. CLOSED SESSION On a motion by Director Mills, seconded by Director Collett, the Board adjourned to Closed Session at 8:01 p.m. All Directors were present. Also present were Messrs. Vecchiarelli, Grady and Kidman, and Mses. Knight and Park. 13.1. Conference with Legal Counsel - Liability Claims Pursuant to Section 54956.95 of the California Government Code Claimants: J. Darrell and Kerry Kamm ' Agency Claimed Against: Yorba Linda Water District 6 2009-083 13.2. Conference with Legal Counsel - Anticipated Litigation ' Pursuant to Subdivision (b)(1)(b) of Section 54956.9 of the California Government Code Number of Potential Cases: Unknown The exposure to litigation arises from assertions of District responsibility for property and related losses incurred during the Freeway Complex Firestorm of November 15 and 16, 2008. The Board reconvened in Open Session at 8:13 p.m. President Summerfield reported that during Closed Session, Director Collett made a motion to reject and refer the claim submitted by J. Darrell and Jerry Kamm to ACWA/JPIA. The motion was seconded by Director Beverage and approved by the Board 5-0. No discussion was held regarding Item No. 13.2. 14. ADJOURNMENT 14.1. On a motion by Director Mills, seconded by Director Collett, the meeting was adjourned at 8:13 p.m. The next regular meeting of the Board of Directors will be held June 25, 2009 at 8:30 a.m. 9 Kenneth R. Vecchiarelli Secretary 7