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HomeMy WebLinkAbout2009-05-28 - Board of Directors Meeting Minutes 2009-067 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING May 28, 2009 1. CALL TO ORDER The May 28, 2009 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 8:30 a.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 Steve Conklin, Engineering Manager Michael J. Beverage Lee Cory, Operations Manager Ric Collett Diane Cyganik, Finance Director ' Gina Knight, Human Resources Mgr Leon de los Reyes, Water Quality Engr Annie Alexander, Executive Secretary 4. ADDITIONS/DELETIONS TO THE AGENDA None. 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 14, 2009 Recommendation: That the Board of Directors approve the minutes as presented. 6.2. Payment of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $860,076.00. 2009-068 6.3. Progress Payment No. 12 for the Highland Reservoir Replacement Project Recommendation: That the Board of Directors approve Progress ' Payment No. 12 in the net amount of $169,975.99 to Schuler Engineering Corporation and 10% retention of $18,886.22 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 6.4. Progress Payment No. 24 for the Lakeview Reservoir Project Recommendation: That the Board of Directors approve Progress Payment No. 24 in the net amount of $226,472.13 to SSC Construction, Inc. and 5% retention of $11,919.58 deposited to City National Bank escrow account, for construction of the Lakeview Reservoir Project, Job No. 200704. 6.5. Financial Statements for Quarter Ending March 31, 2009 Recommendation: That the Board of Directors receive and file the financial statements for the quarter ending March 31, 2009. 6.6. Investment Report for Quarter Ending March 31, 2009 Recommendation: That the Board of Directors receive and rile the investment report for the quarter ending March 31, 2009. 6.7. Damage Claim Filed by Nelda E. Wamsley on Behalf of William C. ' Wamsley, 5088 Via Alvardo, Yorba Linda Recommendation: That the Board of Directors reject the claim. 7. ACTION CALENDAR 7.1. Fairmont Site Improvement Agreement with Shapell Industries Director Beverage announced that he would need to recuse himself from this item as the agreement was with a company who was a source of income. Director Beverage excused himself from the meeting at this time. Mr. Conklin introduced the item and explained that the agreement would formalize the responsibilities of the District and Shapell for funding the design and construction improvements at the Fairmont Booster Pump Station. The Planning-Engineering-Operations Committee discussed this item at its meeting held May 7m and supports staff recommendation. Mr. Conklin then responded to questions from the Board. On a motion by Director Mills, seconded by Director Collett, the Board voted 4-0 to authorize the President and Secretary to execute the Facilities Finance, Design and Construction Agreement with Shapell Industries, Inc. for the Fairmont Site Improvements. ' Director Beverage rejoined the meeting at this time. 2 2009-069 7.2. Frontage Fees for Grandview Sewer Extension Mr. Conklin explained that staff was requesting a one-time exemption to the District's Rules and Regulations for Sewer Service for the District funded Grandview Sewer Extension project to help facilitate cost recovery. Approval of this request would also help establish a basis for invoicing one property owner who has connected to the sewer system without permission. Staff notified each of the affected property owners regarding this proposal and invited them to attend the meeting. Director Mills made a motion, seconded by Director Collett, to authorize a one-time exemption to the District's Rules and Regulations for Sewer Service and establish an adjusted frontage fee charge for the Grandview Sewer Extension, in the amount of $15, 767. Francine Felgemaker, resident, asked if the District would be willing to provide financing for homeowners who do not have the ability to pay for construction costs. Mr. Vecchiarelli explained that the District would be unable to provide financing for residents as the District already financed the project and there was no requirement for sewer service at this time. Ms. Felgemaker also asked if District homeowners would be required to connect to sewer service if their home was sold. Mr. Vecchiarelli explained that there was no such requirement at this time but the Board of Directors reviews and considers changes to the District's Rules and Regulations from time to time. Currently, if a homeowner were to plan site improvements that would require they improve or replace an existing septic tank, if the public sewer system is within 200 feet, they must connect to it and abandon their private septic system. Director Armstrong requested staff to investigate the possibility of requiring homeowners to connect to sewer service upon sale of a home. Mr. Vecchiarelli stated that staff would provide information related to this request at a future Committee meeting and would include any other suggested changes to the District's sewer regulations. Director Armstrong commented that some value would be added to a home if it had sewer service versus a septic tank. Ray Sanchez, resident, expressed his appreciation to the Board for their decision and stated that he was looking forward to sewer service. Mr. Sanchez also asked if the District would contact Orange County Sanitation to see if they would be willing to honor previously quoted permitting fees for participating homeowners. 3 2009-070 Ms. Felgemaker stated that if the total cost of connecting to sewer service was $50,000, that same value would not be added to the home if sold. ' Mr. Vecchiarelli stated that the Board's decision would take approximately $13,000 off the District's cost estimate for each participating homeowner. Ms. Felgemaker asked if the cost estimate would remain the same should homeowners decide not to connect to sewer service at this time. Mr. Vecchiarelli responded that the cost estimate would not necessarily remain the same, but the frontage fee calculation would be fixed. Other components of the fees may change from time to time as adopted by the Board of Directors. The motion was then approved 5-0 by the Board. Director Mills asked staff to contact Orange County Sanitation regarding Mr. Sanchez's request. Mr. Vecchiarelli stated that staff would contact both Orange County Sanitation and the City of Yorba Linda to see what could be done for participating homeowners. Mr. Vecchiarelli further commented that the District had sought funding assistance for sewer projects but was ' unsuccessful. Staff planned to perform an update of the District's Sewer Master Plan as part of the 5 Year Plan. 7.3. 2009 Consumer Confidence Report Mr. Vecchiarelli explained that staff was requesting the Board to approve only the content of the report. Formatting of the report would be completed at a later time and would be similar to previous years. This year's report will also include a section addressing the Boil Water Notice issued during the Freeway Complex Fire. Mr. de los Reyes then responded to questions from the Board regarding the content of the report. On a motion by Director Collett, seconded by Director Armstrong, the Board voted 5-0 to approve the 2009 Consumer Confidence Report for distribution to all District customers. 8. DISCUSSION ITEMS 8.1. Wells Capital Investment Report for the 3'd Quarter of FY 2008/09 Keith Khorey of Wells Capital Management, reviewed the District's Investment Performance Summary Report as provided in the agenda packets. Mr. Khorey also commented on Wells' current investment strategy for the District. ' 4 2009-071 8.2. Status of Hidden Hills Reservoir Project ' Mr. Conklin reported that soil removal for the roadway to the reservoir had been underway for the past week. Trucks leaving the construction site are being monitored by an observer at the bottom of the hill and staff has not received any complaints to date. A street sweeper is cleaning up dirt spilled on the roadway during transport. Soil removal for the reservoir itself will begin next week. 9. REPORTS. INFORMATION ITEMS AND COMMENTS 9.1. President's Report No report was given. 9.2. Directors' Reports Director Mills reported on his attendance at the ACWA/JPIA and ACWA conferences. Director Mills also provided staff with a copy of the publication titled Water for Tomorrow and suggested that each of the Board members be provided with a copy. Director Beverage commented on a monthly investment report from CalPERS and the potential for a deficit affecting future budget cycles. Mr. Vecchiarelli responded and stated that the District's CaIPERS' actuarial ' reports indicate premiums would increase in 2011. Staff has included a 1.8% increase in CalPERS contributions in the next budget to be set aside for this future expense. Mr. Vecchiarelli then responded to questions from the Board regarding the Employer and Employee shares of CalPERS contributions and future funding options. Director Collett commented on the visible affect of the water crisis on farmers in the Central Valley and other parts of California. 9.3. General Manager's Report Mr. Vecchiarelli reported that he had attended the OC Water Summit along with 5 members of the Citizens Advisory Committee and Mark Schock. The summit included a wide variety of discussion panels and staff received a lot of positive feedback from the attending Committee members. Mr. Vecchiarelli also commented on a statement made by a resident at a previous Board meeting regarding water pressure and hydrant flows in her neighborhood. The District's 2005 Water Master Plan indicates that the water distribution system in this area would have trouble meeting current fire flow standards as the pipelines serving the area were constructed as early as the late 1920's. A project to address this issue is included in the District's current Capital Improvement Projects 5 Year Plan ' and is scheduled to begin within the next fiscal year. 9.4. Future Agenda Items and Staff Tasks None. 5 10. COMMITTEE REPORTS 2009-072 10.1. Executive-Administrative-Organizational Committee ' (Summerrield/Mills) Alternate: Collett Minutes of the meeting held May 21 were provided in the agenda packet. Directors Summerfield and Mills attended. Items discussed during the meeting were as follows: current grant activities and plan for obtaining future State and Federal grants; reports on legislative activities and 2009 legislative bills; General Counsel's monthly summary billing report; Directors' and General Manager's fees and expenses for Jan-Mar; future planning initiatives from the strategic planning workshop; and an action plan update for OCWD annexation. Meeting scheduled for June 16, 4:00 p.m. 10.2. Finance-Accounting Committee (Beverage/Summerfield) Altemate: Mills Meeting scheduled for June 9, 4:00 p.m. 10.3. Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summerfield ' Meeting scheduled for June 8, 4:00 p.m. 10.4. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage Meeting scheduled for June 4, 4:00 p.m. 10.5. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong Minutes of the meeting held May 19 were provided in the agenda packet. Directors Collett and Beverage attended. Items discussed during the meeting were as follows: table tents and tri-fold brochure regarding the Conservation Ordinance; and the Water Lines Spring 2009 Newsletter. Meeting scheduled for June 2, 4:00 p.m. was cancelled but may be rescheduled for later in the month. Meeting scheduled for July 7, 4:00 p.m. 1 6 2009-073 10.6. MWDOC/OCWD Ad Hoc Committee ' (Mills/Collett) Alternate: Summerfield Minutes of the meeting held May 26 were provided at the meeting. Director Mills attended. Items discussed during the meeting were as follows: water supply update; Met conservation and outreach issues; state budget issues; lease site for well at Santa Ana Lakes (Warner Basin); and the OCWD annexation. Director Mills requested staff to include a discussion item regarding Bryant Ranch Wells on a future agenda. 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 (Beverage/Vecchiarelli) Meeting scheduled for June 10, 4:00 p.m. ' 10.9. Citizens Advisory Committee Meeting scheduled for May 19, 4:00 p.m. was cancelled. Meeting scheduled for Jun 1, 8:00 a.m. 11. INTERGOVERNMENTAL MEETINGS 11.1. Yorba Linda City Council, May 19 (Armstrong) Director Armstrong attended and reported that the Council discussed the possibility of declaring vacant commercial property in the Savi Ranch area as residential for future high density housing construction. The Council also discussed rising sewer pipeline maintenance expenses. 11.2. MWDOC Board, May 20 (Staff) Staff did not attend. 11.3. OCWD Board, May 27 (Staff) Staff did not attend. ' 11.4. Yorba Linda Planning Commission, May 27 (Collett) This meeting was cancelled. 7 2009-074 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from May 28, 2009 thru June 30, 2009 The Board reviewed the listed meetings with no changes. Director Beverage requested staff to continue to work with the City of Yorba Linda regarding water conservation and a possible variance to the recently passed Ordinance. 13. ADJOURNMENT 13.1. On a motion by Director Beverage, seconded by Director Mills, the meeting was adjourned at 10:09 a.m. A Board of Directors workshop meeting will be held June 2, 2009 at 8:00 a.m. The next regular meeting of the Board of Directors will be held June 11, 2009 at 6:30 p.m. Kenneth R. Vecchiarelli Secretary SCANNED JUN 17 2009 8 - ~ a~-