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HomeMy WebLinkAbout2010-05-27 - Board of Directors Meeting Minutes 2010-78 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING May 28, 2010 1. CALL TO ORDER The May 28, 2010 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Mills 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 William R. Mills, President Ken Vecchiarelli, General Manager Michael J. Beverage, Vice President Pat Grady, Assistant General Manager Ric Collett (Arrived at 8:33 a.m.) Art Kidman, General Counsel Phil Hawkins Steve Conklin, Engineering Manager ' John W Summerfield Lee Cory, Operations Manager Stephen Parker, Finance Director Gina Knight, HR Manager Damon Micalizzi, PI Specialist Amelia Cloonan, Personnel Tech Richard Gangloff, Maint Dist Operator II Edgar Araujo, Maintenance Worker I Annie Alexander, Executive Secretary OTHER VISITORS Brett Barbre, Director, Municipal Water District of Orange County Laurie Park, Associate, McCormick, Kidman & Behrens 4. ADDITIONS/DELETIONS TO THE AGENDA Mr Vecchiarelli requested to add the following item to the agenda as there was a need to take immediate action on this item and the need for action came to staffs attention subsequent to the agenda being posted. 14.2. Conference with Legal Counsel - Pending Litigation Pursuant to Subdivision (a) of Section 54956 9 of the California Government Code ' Name of Case: Itani, et al vs. YLWD (OC Superior Court - Case No. 00124906) 1 2010-79 Name of Case: Johnson, et al vs. YLWD, et at (OC Superior Court - ' Case No. 00125994) Name of Case: State Farm General Insurance Company vs. YLWD (OC Superior Court - Case No. 00311353) Name of Case: Weiss vs. YLWD (OC Superior Court - Case No. 00319080) Name of Case: Lindholm vs. YLWD, et al (OC Superior Court - Case No. 00320239) Name of Case: Travelers Commercial Insurance Company vs. YLWD (OC Superior Court - Case No. 00327152) Name of Case: Manista vs. YLWD, et al (OC Superior Court - Case No. 00332968) Name of Case: Rodriguez vs. YLWD, et al (OC Superior Court - Case No. 00333938) Name of Case: American Security Insurance Company, et al vs. , YLWD (OC Superior Court - Case No. 00348304) On a motion by Director Beverage, seconded by Director Hawkins, the Board voted 4-0 with Director Collett being absent, to add Item No. 14.2. to the agenda. 5. PUBLIC COMMENTS None. 6. SPECIAL RECOGNITION 6.1. Introduce Edgar Araujo, Newly Hired Maintenance Worker I Mr Cory introduced Mr Araujo and provided a brief summary of his work history Director Collett arrived at 8:33 a.m. 6.2. Recognize Amelia Cloonan, Personnel Technician, and Richard Gangloff, Maintenance Distribution Operator 11, for Receipt of H.R. LaBounty Safety Award The Board of Directors commended Ms. Cloonan and Mr. Gangloff for their efforts in promoting a safe work environment. 2 2010-80 ' 6.3. Recognize Amelia Cloonan, Personnel Technician, for Completion of the ACWA/JPIA Professional Development Program The Board of Directors commended Ms. Cloonan for completion of the Supervisor Basics and Human Resources specialties in the ACWA/JPIA Professional Development Program. Ms. Cloonan and Messrs. Araujo and Gangloff left the meeting at this time. 7. CONSENT CALENDAR On a motion by Director Beverage, seconded by Director Summerfie/d, the Board voted 5-0 to approve the Consent Calendar Director Hawkins abstained from voting on Item No. 7 1 as he was not in attendance at the meeting. 7.1. Minutes of the Regular Board of Directors Meeting Held May 13, 2010 Recommendation. That the Board of Directors approve the minutes as presented. 7.2. Payment of Bills, Refunds, and Wire Transfers Recommendation. That the Board of Directors ratify and authorize ' disbursements in the amount of $684,300 92. 7.3. Final Progress Payment 3 for the Administration Building Solar Project Recommendation. That the Board of Directors approve Final Progress Payment No. 3 in the net amount of $24,95144 to Akeena Solar Inc., authorize staff to file the Notice of Completion and release the retention thirty-five days following recordation if no liens have been filed; release the Labor and Material Bond; and release the Faithful Performance Bond in one year if no defects have been found in the Administration Building Solar Project, Job No. 200912. 7.4. Ohio Street Pipeline Replacement Project Professional Services Agreement Recommendation. That the Board of Directors ratify issuance of a Professional Services Agreement for engineering services with Tetra Tech, Inc. for the Ohio Street Pipeline Replacement Project, for a fee of $85,400. 3 2010-81 7.5. Quarterly Investment Report for March 2010 ' Recommendation: That the Board of Directors receive and file the investment report for the quarter ending March 31, 2010. 8. ACTION CALENDAR 8.1. Revision of the District's Personnel Rules Ms. Knight explained that over the past several months, the District's negotiating team and bargaining unit representatives had been reviewing proposed revisions to the District's Personnel Rules. These revisions included bringing the rules into compliance with the Fair Labor Standards Act and removing outdated language. The Personnel-Risk Management Committee reviewed the revisions on several occasions and recommend adoption by the Board. On a motion by Director Collett, seconded by Director Hawkins, the Board voted 5-0 on a Roll Call to approve Resolution No. 10-09 Adopting Personnel Rules for the Yorba Linda Water District. 8.2. Initiating Proceedings for SAVI Ranch Annexation Mr Conklin explained that the District had filed an application with LAFCO ' to initiate proceedings for the annexation of a 303-acre area in SAVI Ranch to the District. The District has been providing water service to this area since 1982 through a pre-annexation agreement with the developer, SAVI Ranch Associates. The purpose of the annexation is to adjust the District's boundaries so they are coterminous with its service area. On a motion by Director Beverage, seconded by Director Summerfield, the Board voted 5-0 on a Roll Call to approve Resolution No. 10-10 Initiating Proceedings for Savi Ranch Annexation of Approximately 303 Acres to the Yorba Linda Water District. 8.3. Consolidation of Enterprise Funds Mr Vecchiarelli explained that consolidating the District's enterprise fund structure from four accounts into two, retaining the Water and Sewer funds and eliminating the Improvement District (ID) 1 and ID 2 funds would significantly reduce the amount of unnecessary reporting work performed by the Finance department. Mr Vecchiarelli then provided a brief summary of the original purpose of the ID 1 and ID 2 funds and their current status. Following further discussion, Director Mills stated that the Board had been provided a copy of correspondence from representatives of the King Family, landowners in ID 1, against this proposed action. Mark Guithues, attorney for Community Legal Advisors, Inc. representing ' the King Family, addressed the Board and stated that he had recently been informed by staff that consolidation of these funds would not have an 4 2010-82 ' adverse affect on the District's ability to obtain bond funding for future development and that they were no longer opposing this action. On a motion by Director Beverage, seconded by Director Summerfield, the Board voted 5-0 on a Roll Call to approve Resolution No. 10-11 Consolidating Improvement District No. 1 and 2 Funds into Reserves for Capital Projects. 8.4. Financial Reserves Policy Mr Parker explained that the proposed policy would establish written goals and objectives and provide guidelines for the managing, funding and use of the District's financial reserves. The adoption of a formal reserve policy will also demonstrate that the District plans to continue managing its financial obligations in a prudent and financially responsible manner A total of 5 reserve funds are identified in the policy of which 3 are Board designated and 2 are contractually restricted. On a motion by Director Summerfield, seconded by Director Collett, the Board voted 5-0 on a Roll Call to approve Resolution No. 10-12 Adopting and Implementing a Financial Reserves Policy ' 8.5. Import Water Pass-Through Rate Increase Mr Vecchiarelli explained that the Metropolitan Water District (MWD) had adopted a 2-year rate increase which will be passed on to the District by the Municipal Water District of Orange County (MWDOC) who supplies YLWD with imported water The Board previously discussed various options available for implementing a MWD/MWDOC pass-through rate increase in the FY 2010/11 budget at the May 13, 2010 meeting. The Board instructed staff to evaluate a rate increase on the basic service charge between $.97 and $1.94 for implementation on July 1, 2010, that would cover the 2-year rate increase adopted by MWD Staff calculated that an increase of $1.53 effective August 1, 2010 would cover the pass- through increase from MWD and allow for a 30-day advance notice to customers as required by law On a motion by Director Beverage, seconded by Director Collett, the Board voted 5-0 on a Roll Call to approve Resolution No 10-13 Setting Water Rates Effective August 1, 2010 and Amending Resolution Nos. 07- 17 and 09-15. 8.6. Director Attendance at Citizens Advisory Committee (CAC) Meetings Mr Vecchiarelli explained that the Board of Directors had been rotating their attendance at CAC meetings for the past several months. The ' Executive-Administrative-Organizational (EAO) Committee recently discussed the possibility of assigning regular and alternate Board members to attend these meetings through the end of the calendar year The EAO Committee directed staff to present this matter to the Board for review The Board then discussed the purpose of the CAC and the 5 2010-83 advantages and possible disadvantages of having a Board member attend ' these meetings. On a motion by Director Beverage, seconded by Director Collett, the Board voted 5-0 to not assign a regular and alternate Board member to regularly attend CAC meetings and requested that the committee's Chair, Vice Chair or a member of staff provide a verbal report on each meeting to the Board on a monthly basis. 9. DISCUSSION ITEMS 9.1. FY 2010/11 Draft Budget Mr Vecchiarelli provided the Board with a revised budget document as the original contained some errors in the Table of Contents. Mr Vecchiarelli then provided a brief overview of the draft budget and responded to questions from the Board regarding the water loss factor, water conservation and its effect on water sales, and reserve fund targets. Mr Barbre addressed the Board and commented on the amount listed for CalPERS contributions. Mr Parker replied that staff planned to request that the Board establish a trust to deposit and hold these contributions at the end of the next fiscal year ' Mr Vecchiarelli stated that staff would be presenting a final budget for Board approval at the meeting scheduled June 24, 2010. Director Mills commended staff on their work with the budget. 10. REPORTS. INFORMATION ITEMS AND COMMENTS 10.1. President's Report None. 10.2. Directors' Reports None. 10.3. General Manager's Report Mr Vecchiarelli reported that he and Mr Micalizzi, along with 7 members of the CAC, had attended the Orange County Water Summit held May 14, 2010. Mr. Vecchiarelli further reported that he had received a thank you letter from the City of Calexico for the support provided by Harold Hulbert following the earthquake on April 4, 2010 Director Hawkins questioned if MWD had taken a formal position with ' regard to the November Water Bond Measure. Mr Barbre stated that both MWD and MWDOC supported the measure. 6 2010-84 ' 10.4. General Counsel's Report None. 10.5. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Executive-Administrative-Organizational Committee (Mills/Beverage) Alternate. Collett Minutes of the meeting held May 26, 2010 were provided at the meeting. Directors Mills and Beverage attended. Matters discussed during the meeting were as follows: Amendments to the Conflict of Interest Codes for the District and the Public Financing Corporation; District Media Policy; and General Counsel's Monthly Summary Billing Report. Meeting scheduled June 15, 2010 at 4.00 p.m. was cancelled. The meeting was then rescheduled to June 30, 2010 at 4:00 p.m. following discussion of Item No. 14 1 ' 11.2. Finance-Accounting Committee (Summerfield/Collett) Alternate. Mills Minutes of the meeting held May 17, 2010 were provided in the agenda packet. Directors Summerfield and Mills attended. Matters discussed during the meeting were as follows. Import Water Pass Through Rate Increase; Draft Financial Reserves Policy; March Budget to Actual Results; Monthly Investment Report for March 2010; Budget Calendar and Progress Update; and Monthly Portfolio Reports for March 2010 Meeting scheduled June 14, 2010 at 4.00 p.m. was rescheduled to 8:00 a.m. the same day 11.3. Personnel-Risk Management Committee (Collett/Hawkins) Alternate: Summerfield Meeting scheduled June 8, 2010 at 4.00 p.m. was rescheduled to June 4, 2010 at 4.00 p.m. 11.4. Planning-Engineering-Operations Committee (Mills/Summerfield) Alternate. Beverage ' Meeting scheduled June 3, 2010 at 4,00 p.m. was rescheduled to June 2, 2010 at 4.00 p.m. 7 2010-85 11.5. Public Information-Technology Committee ' (Beverage/Hawkins) Altemate: Summefiield Meeting scheduled June 1, 2010 at 4.00 p.m. 11.6. MWDOC/OCWD Ad Hoc Committee (Mills/Beverage) Alternate. Collett Minutes of the meeting held May 25, 2010 were provided at the meeting. Directors Mills and Beverage attended. Matters discussed during the meeting were as follows: OCWD Annexation; MWDOC Rates for FY 2010/11; 2010/11 MWDOC Allocations; Status of North/South Negotiations; MET's approach to Urban Water Management Plan; and November Water Bond Measure. Meeting scheduled July 27, 2010 at 4:00 p.m. 11.7. Citizens Advisory Committee (Directors Rotate Attendance) Minutes of the meeting held May 24, 2010 were provided at the meeting. Director Collett attended Matters discussed during the meeting were as ' follows: Organizational Future of the CAC; Proposed Water Rate Increase; November Water Bond Measure; and Status Report on Conservation Efforts. Meeting scheduled June 28, 2010 at 8:30 a.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. YL City Council - May 18, 2010 (Summerfield) Director Summerfield did not attend. 12.2. MWDOC Board - May 19, 2010 (Staff) Staff did not attend. 12.3. OCWD Board - May 19, 2010 (Staff) Staff did not attend. 12.4. YL Planning Commission - May 26, 2010 (Hawkins) Director Hawkins attended and reported that the item regarding the conveyance of excess right-of-way parcels to adjoining residential property owners was removed from the agenda and will be addressed at the next meeting. ' 8 2010-86 ' 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from May 28, 2010 -June 30, 2010 The Board reviewed the listed meetings and made one additional change. On a motion by Director Collett, seconded by Director Beverage, the Board authorized Director Hawkins to attend the WACO meeting scheduled June 4, 2010. A brief recess was declared at 10:22 a.m. The meeting reconvened at 10:27 a.m. 14. CLOSED SESSION The meeting was adjourned to Closed Session at 10:27 a.m. All Directors were present. Also present were Messrs. Vecchiarelli, Grady and Kidman and Mses. Knight and Park. The following item was taken out of order 14.2. Conference with Legal Counsel - Pending Litigation Pursuant to Subdivision (a) of Section 54956 9 of the California Government Code Name of Case: Itani, et al vs. YLWD (OC Superior Court - Case No. 00124906) Name of Case: Johnson, et al vs. YLWD, et al (OC Superior Court - Case No. 00125994) Name of Case: State Farm General Insurance Company vs. YLWD (OC Superior Court - Case No. 00311353) Name of Case: Weiss vs. YLWD (OC Superior Court - Case No. 00319080) Name of Case: Lindholm vs. YLWD, et al (OC Superior Court - Case No. 00320239) Name of Case: Travelers Commercial Insurance Company vs. YLWD (OC Superior Court - Case No. 00327152) Name of Case: Manista vs. YLWD, et al (OC Superior Court - Case ' No. 00332968) Name of Case: Rodriguez vs. YLWD, et al (OC Superior Court - Case No. 00333938) 9 2010-87 Name of Case: American Security Insurance Company, et al vs. ' YLWD (OC Superior Court - Case No. 00348304) Messrs. Grady and Kidman and Mses. Knight and Park left the Closed Session at 11 15 a.m. following discussion of this item. 14.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 11:34 a.m. President Mills announced that an Executive-Administrative-Organizational Committee meeting would be scheduled on June 30, 2010 at 4.00 p.m. to discuss the General Manager's contract. 15. ADJOURNMENT 15.1. The meeting was adjourned at 11.35 a.m. The next regular meeting of the Board of Directors will be held June 10, 2010 at 8:30 a.m. 1 Ken ecchiarelli Board Secretary 10