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HomeMy WebLinkAbout2007-05-24 - Board of Directors Meeting MinutesMINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING May 24, 2007 2007-87 The May 24, 2007 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Ric Collett at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL Ric Collett, President John W. Summerfield, Vice President Paul R. Armstrong Michael J. Beverage William R. Mills STAFF PRESENT Michael A. Payne, General Manager Arthur G. Kidman Kenneth R. Vecchiarelli, Asst. G.M. Lee Cory, Operations Manager Diane Cyganik, Finance Director Amelia Cloonan, Executive Secretary Scott Moulton, Senior Project Engineer Anh Nguyen, Engineering Technician INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Brett Barbre, MWDOC Director Ali Diba, President, DCSE Masoud Hoseyni, V.P., DCSE Haritha Vendra, Sr. GIS Analyst, DCSE MWDOC Director reported the District will receive a refund as a result of a change in MWDOC's policy regarding higher than average reserves. Agencies who paid in will receive refunds in June. Mr. Barbre reported on progress at the Diemer plant. He also reported on progress with the test drilling for the tunnel. A full report on the tunnel should be received in August. Mr. Barbre also reported the energy commission has put rules in place to disallow utilities from purchasing coal related energy. Brett Barbre left the meeting at 8:37 a.m. SPECIAL RECOGNITION None Discussion Item No. 7 was moved to this point in the meeting. DISCUSSION ITEMS 7. GIS Pilot Study Presentation. Recommendation: This is for information only. No action is required. -1- 2007-88 Senior Project Engineer Moulton introduced DSCE Staff, Dr. Ali Diba, President, Dr. Mahsoud Hoseyn, Vice President, and Haritha Vendra, Sr. GIS Analyst. He also introduced Anh Nguyen, Engineering Technician, Yorba Linda Water District. Dr. Ali Diba gave a Powerpoint presentation entitled "YLWD Geographic Information System". Assistant General Manager Vecchiarelli commented this involves making sure Engineering people and others are comfortable with the way maps are presented. Dr. Diba continued noting with GIS a person is able to map where things are, quantities, densities, what is inside an area, what is nearby and changes. A demonstration was presented for a pilot area. Maintenance of the system was discussed. Assistant General Manager Vecchiarelli said maintenance will be performed i n house as much as possible. Senior Project Engineer Moulton said the system has been put together for the most part with off-the-shelf software. According to Assistant General Manager Vecchiarelli, the pilot study will take a year to convert. RFP's are not yet completed for full data conversion. The length of development of the program, personnel needed and budgeting were questioned. Dr. Ali Dib, Dr. Masoud Hoseyni, Haritha Vendra, Anh Nguyen and Scott Moulton left the meeting at 9:21 a.m. CONSENT CALENDAR (Items 1 through 4) On a motion by Director Mills, seconded by Director Armstrong, the Board of Directors voted 5-0 to approve the Consent Calendar, with President Collett abstaining from voting on check no. 46648, Item No. 2. 1. Minutes of the Regular Board of Directors meeting held May 10, 2007. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $2,654,580.12. 3. Financial Statements for the ninth month of fiscal year 2006-2007 for the period ending March 31, 2007. Recommendation: Receive and file the financial statements. 4. Cast Iron Replacement and Sewer Improvement Projects. Recommendation: Approve Change Order No. 3 in the amount of $36,371.42 and approve Progress Payment No. 9 in the net amount of $451,464.66 to Vido Artukovich and Son Inc./Vidmar Inc., a Joint Venture for construction of the combined Cast Iron Replacement and Sewer Improvement Projects, Job Nos. 200407, 200515, 200516, 200603 and 200604. -2- 2007-89 DISCUSSION ITEMS 9. Status Report on YLWD's request to Orange County Water District for the annexation of Districts lands. On May 22, President Collett, Vice President Summerfield and General Manager Payne met with Phil Anthony, Roger Yoh, Mike Wehner and John Kennedy of OCWD. A meeting was scheduled with both staffs for the following week to work with Bryant Ranch issues to negotiate some compromise. President Collett stated OCWD Board and Staff gave an update on the IRWD annexation. There was some discussion about LAFCO, IRWD, OCWD, Golden State. Recommendation: This is for information only. No action is required. Betsy Martin entered the meeting at 9:39 a.m. ACTION CALENDAR 6. Yorba Linda Water District Sewer Maintenance Fees Report Fiscal Year 2007-08. General Manager Payne handed out an update to the materials presented in the agenda report. The purpose of this item is to ask the Board to agree to set a public hearing. General Counsel Kidman introduced Betsey Martin, partner at McCormick, Kidman & Behrens. Finance Director Cyganik went over the materials presented. There was discussion about costs, the depreciation fund vs. R&R fund, running down of reserve accounts, equipment replacement costs and covering expenses Betsy Martin prepared a letter that will go out in order to comply with SB 218. The District can increase the charge from $3.50 to $7.00 over two years as long as it can justify the increase. Director Mills recounted the formula the committee came up with: $4.50 + .50 = $5.00 x 10% for the second year. The end result was $5.50, which was the committee recommendation as of May 22. Betsy Martin continued to say the District must notice the maximum and the staff report and documentation must be made available to the public. The District cannot charge anything above what is noticed, and this must be cost justified. The District can then go up to $7.00 plus a CPI increase before noticing the public again. General Counsel Kidman said relative to the notice and justification, in the very last page of justification there is a discussion about non residential rates. Under Prop 218, we have to do a justification. The amount you are raising cannot exceed the amount of service, and the cost has to be divided equitably among customers. General Counsel Kidman believes we need a page added to the report to discuss why the formula for commercial and education works and does not put an unfair burden on those customers. The subject needs to be covered in the notice. On a motion by Director Mills, seconded by Director Armstrong, the Board of Directors voted 5-0 to schedule a Public Hearing for July 26, 2007 at 8:30 a.m. regarding rate adjustments outlined in the Sewer Maintenance Fees Report for Fiscal Year 2007-08. -3- 2007-90 A recess was declared at 11:02 a.m. Betsy Martin left the meeting. The Board of Directors reconvened at 11:08 a.m. with all Directors present. DISCUSSION ITEMS 8. 2007/08 & 2008/09 "Draft" Budget. General Manager Payne handed out copies of the "Draft" budget and asked the Directors to take a look at it and get back to him with their comments by Wednesday, May 30 or Thursday, May 31. The budget and comments will go to the Finance Committee on June 5. Recommendation: Provide comments and direction to staff. REPORTS, INFORMATION ITEMS AND COMMENTS 10. a. President's Report President Collett had already presented information regarding the meeting held with OCWD on May 22. b. Directors Reports None. c. General Managers Report General Manager Payne will attend PYLUSD Superintendent Smith's retirement on May 24. d. General Counsel's Report General Counsel Kidman said Betsy Martin mentioned there was a case under Prop 218 that talks about the formulas and what you have to notify in terms of increases. There was a second case, Pajarro, involving a replenishment assessment. The charge by Pajarro was found to be subject to Prop 218. First Report 2007 Legislative Bills General Counsel Kidman stated a Legislative Report was included in the Agenda. On page 3, AB 1260, he recommends that as an agency the District write a support letter. This Bill authorizes the use of the rate payer list rather than the property tax roll. This part of the bill is not controversial. It would be good to talk to the District's representatives in this area. Under the Brown Act, there is a Bill on page 6, SB 343, which is sponsored by realtors. Agencies receiving materials after the agenda was produced would be required to roll the item to the next board meeting. SB 964 deals with another part of the Brown Act which changed the rules concerning communication among board members outside meetings. The rules are more liberal as long as there is no communication among board members asking how someone is going to vote and in order to have a collective concurrence, essentially in the serial meeting context. -4- 2007-91 COMMITTEE REPORTS 11. a. Executive-Administrative-Organizational Committee (Collett/Summerfield) Alternate. Armstrong 1) Minutes of meeting held May 15. The Committee considered amendments to the District's Purchasing Policy. The Committee asked that verbal quotes be replaced with written quotes. Cell tower lease proposals were delegated to administrative handling. Barry Brokaw, Sacramento Advocates called in to give a brief summary of his written report. Sean Fitzgerald, Townsend Public Affairs, provided an activity report. Debbie Trabbatoni, The OC Advocacy Group, called in with an update of annexation issues. The Committee reviewed Directors and General Manager's fees and expenses for third quarter 06/07. 2) Meeting scheduled for June 19, 4:00 p.m. b. Finance-Accounting Committee (Mills/Beverage) Alternate: Summerfield 1) Minutes of meeting held May 11. The Committee discussed the new format of Financial Statements for the ninth month of fiscal year 06/07. Staff was directed to move Financial Statements to the Board Agenda's Consent Calendar. Keith Khorey, Wells Capital Management, reported by phone on the status of April activities. A discussion of the current sewer rates and projected increases was held. 2) Minutes of meeting held May 22 will appear in the Board agenda for June 14. 3) Meeting scheduled for June 5, 4:00 p.m. c. Personnel-Risk Management Committee (Summerfield/Armstrong) Alternate: Mills 1) Schedule Meeting. 2) Meeting scheduled for June 11, 4:00 p.m. d. Planning-Engineering-Operations Committee (Armstrong/Mills) Alternate: Collett 1) Meeting scheduled for June 7, 4:00 p.m. e. Public Information Committee (Collett/Beverage) Alternate: Armstrong 1) Meeting scheduled for June 12, 4:00 p.m. -5- 2007-92 f. Building Ad Hoc Committee (Summerfield/Beverage) Alternate: Armstrong 1) Meeting of May 17 to be rescheduled to May 31, 4:00 p.m. 2) Meeting scheduled for June 21, 4:00 p.m. g. MWDOC Ad Hoc Committee (Beverage/Collett) Alternate: Mills 1) Meeting scheduled for June 26, 4:00 p.m. h. City of Placentia Ad Hoc Committee (Beverage/Payne) 1) Meeting to be scheduled. INTERGOVERNMENTAL MEETINGS 12. a. WACO, May 4 No one attended. b. ACWA/JPIA Conference, May 7 & 8 (Mills) Director Mills attended. There is a downward trend in claims. A 20% reduction in rates is proposed for workers compensation insurance this year. G&A expenses are going down. Claims are half of those last year. Their investments are drawing 4.3%. c. ACWA Spring Conference, May 9 & 10 (Mills) Director Mills found the program was not a strong one. Daryl Steinberg said the Delta would be fixed by 2010. He referred to the Public Policy Institutes report. The Governor was the keynote luncheon speaker. He committed himself to fixing the Delta. Director Mills met with Steve Hall. General Counsel Kidman rated the conference well. A debate on storage and proposed dams took place between Lester Snow and a professor. d. Yorba Linda City Council, May 15 No one attended. e. MWDOC Board, May 16 (Staff) No one attended. f. OCWD Board, May 16 (Staff) No one attended g. Yorba Linda Planning Commission, May 23 No one attended. -6- 2007-93 General Manager Payne mentioned a letter received from nine home owners on Grandview. This matter will be discussed at the PEO Committee meeting and will be placed on the Board Agenda. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after May 24, 2007. Agenda is available in the District office prior to meeting. .tune 2nn7 WACO, June 1, 7:30 a.m. Mills Public Information Committee, June 5, 4:00 .m. Collett/Beverage Yorba Linda City Council, June 5, 6:30 .m. Collett MWDOC/MWD Joint Workshop, June 6, 8:30 a.m. Staff OCWD Board, June 6, 5:00 .m. Staff Plan nin -En ineerin -O erations committee, June 7, 4:00 .m. Armstrong/Mills Personnel-Risk Management Committee, June 11, 4:00 .m. Summerfield/Armstron Finance-Accounting Committee, June 12, 4:00 .m. Mills/Beverage Yorba Linda Planning Commission, June 12, 6:30 .m. Armstrong Executive-Admin-Or anizational Committee, June 19, 4:00 .m. Collett/Summerfield Yorba Linda City Council, June 19, 6:30 .m. Mills MWDOC Board, June 20, 8:30 a.m. Staff OCWD Board, June 20,5:00 .m. Staff Building Ad Hoc Committee, June 21, 4:00 p.m. Summerfield/Beverage Yorba Linda Planning Commission, June 27, 6:30 p.m. Summerfield _hillu 2nn7 Public Information Committee, Jul 3, 4:00 .m. Collett/Bevera e MWDOC/MWD Joint Workshop, Jule 4, 8:30 a.m . Holida -TBD Staff OCWD Board, Jul 4, 5:00 .m. (Holiday) Staff Planning-Engineering-Operations Committee, Jul 5, 4:00 .m. Armstrong/Mills Yorba Linda City Council, Jul 5, 6:30 .m. Collett WACO, Jul 6, 7:30 a.m. Mills Personnel-Risk Management Committee, Jul 9, 4:00 .m. Summerfield/Armstron Finance-Accounting Committee, Jul 10, 4:00 .m. Mills/Beverage Yorba Linda Planning Commission, Jul 11, 6:30 p.m. Armstrong Executive-Admin-Or anizational Committee, Jul 17, 4:00 .m. Collett/Summerfield Yorba Linda City Council,. Jul 18, 6:30 .m. Mills MWDOC Board, Jul 18, 8:30 a.m. Staff OCWD Board, Jul 18, 5:00 .m. Staff Building Ad Hoc Committee, Jul 19, 4:00 .m. Summerfield/Bevera e Yorba Linda Planning Commission, Jul 25, 6:30 .m. Summerfield CONFERENCES AND SEMINARS 13. Authorize attendance of Directors and such staff members of the District as approved by the General Manager to attend the following conferences and seminars. a. None -7- 2007-94 ADJOURN TO CLOSED SESSION No Closed Session was held. 5. Public Employee Performance Evaluation [Government Code Section 54957] Title: General Manager ADJOURNMENT On a motion by Director Beverage, seconded by Vice President Summerfield, the Board of Directors voted 4-0, with Director Armstrong not present, to adjourn to a regular meeting of the Board of Directors scheduled for Thursday, June 14, 2007 at 8:30 a.m., at 4622 Plumosa Drive, Yorba Linda 92886. Michael A. Payne Secretary -8-