HomeMy WebLinkAbout2011-06-23 - Board of Directors Meeting Minutes
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' MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
June 23, 2011
1. CALL TO ORDER
The June 23, 2011 Regular Meeting of the Yorba Linda Water District Board of
Directors was called to order by President Beverage at 6:05 p.m. The meeting was
held in the Board Room at the District's Administrative Building located at 1717
East Miraloma Avenue in Placentia, California 92870.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Michael J. Beverage, President Ken Vecchiarelli, General Manager
Phil Hawkins, Vice President Lee Cory, Operations Manager
Robert R. Kiley Steve Conklin, Engineering Manager
Gary T. Melton Gina Knight, Human Resources Mgr
' Stephen Parker, Finance Manager
Art Vega, Interim IT Director
Damon Micalizzi, Public Info Officer
Annie Alexander, Executive Secretary
DIRECTORS ABSENT
Ric Collett
ALSO PRESENT
Brett Barbre, Director, Municipal Water District of Orange County
Nancy Rikel, Mayor, City of Yorba Linda
Art Kidman, General Counsel, Kidman, Behrens & Tague
Eddy Beltran, Senior Associate, Kidman, Behrens & Tague
Linda Bauermeister, Attorney, Barber & Bauermeister
4. ADDITIONS/DELETIONS TO THE AGENDA
President Beverage announced that Item No. 8.1. would be taken at this time so
that MWDOC Director Barbre could attend a previous engagement.
8. ACTION CALENDAR
8.1. Agreement Between Municipal Water District of Orange County and its
' Member Agencies
Mr. Vecchiarelli provided the Board with a brief overview of the purpose of
the agreement. Director Barbre addressed the Board and explained that as
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the vast majority of the participating agencies had executed the agreement, it '
is already considered operational with or without the District's participation.
The only benefit to the District for executing the agreement is that the Board
would be able to provide input regarding the selection of the next MWD
Director. Director Barbre then responded to questions from the Board
regarding the Poseidon desalination project and the proposed consolidation
of MWDOC with OCWD. Following further discussion, the Board decided to
take no action and table this matter.
Director Barbra left the meeting at this time.
5. PUBLIC COMMENTS
None.
6. CLOSED SESSION
The Board adjourned to Closed Session at 6:23 p.m. All Directors in attendance
were present. Also present were Messrs. Vecchiarelli, Kidman and Beltran and
Mrs. Bauermeister.
6.1. 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: American Security Insurance Company, et al vs. YLWD '
(OC Superior Court - Case No. 00348304)
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Name of Case: Buc vs. YLWD (OC Superior Court - Case No.
00409755)
Name of Case: Interinsurance Exchange of the Automobile Club vs.
YLWD (OC Superior Court - Case No. 00425404)
The Board reconvened in Open Session at 7:40 p.m. President Beverage
announced that no action was taken during Closed Session that was required to be
reported under the Brown Act and that discussion of this matter would be continued
at the end of the meeting.
Mrs. Bauermeister left the meeting at this time.
7. CONSENT CALENDAR
Director Melton made a motion, seconded by Director Hawkins, to approve the
Consent Calendar. Motion carried 4-0-1.
7.1. Minutes of the Board of Directors Regular Meeting Held June 9, 2011
Recommendation: That the Board of Directors approve the minutes
as presented.
' 7.2. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $1,297,202.71.
7.3. Progress Payment No. 3 for Construction of the Emergency Pumpout
Facilities and Anaheim Interconnection Project
Recommendation: That the Board of Directors approve Progress
Payment No. 3 in the net amount of $101,250.00 to GCI Construction,
Inc. for construction of the Emergency Pumpout Facilities and
Anaheim Interconnection Project, Job Nos. 200903 and 200906.
7.4. Progress Payment No. 5 for Construction of the Highland Booster Pump
Station Project
Recommendation: That the Board of Directors approve Progress
Payment No. 5 in the net amount of $157,275.00 to Pacific Hydrotech
Corporation for construction of the Highland Booster Pump Station
Project, Job No. 200814.
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7.5. Final Progress Payment and Notice of Completion for Construction of Water '
Quality Mixer for Hidden Hills Reservoir
Recommendation: That the Board of Directors approve Final
Progress Payment in the net amount of $32,512.50 to Process
Solutions, Inc. and authorize staff to file the Notice of Completion and
release the retention thirty five days following recordation, if no liens
have been riled, release the Labor and Material Bond, and release the
Faithful Performance Bond in one year if no defects have been found
for the construction of the Tank Shark Water Management System at
the Hidden Hills Reservoir, Job No. 2010-25.
7.6. Lease Agreement for Two Copiers
Recommendation: That the Board of Directors authorize the General
Manager to sign a Lease Agreement with Konica Minolta for a Sizhub
C552 and a Buzhub 181 for a monthly cost of $525.00 and per copy
cost of $0.059 per color copy and $0.00718 per black and white copy.
8. ACTION CALENDAR CONTINUED
Item No. 8.1. was taken following Item No. 4.
8.2. Proposed Budget for Fiscal Year 2011/12 '
Mr. Parker explained that only a few revisions had been made since the last
version was reviewed by the Board. An errata sheet and a copy of the
revised pages were distributed at the meeting. Director Kiley thanked staff
for their work on the budget and stated that he was uncomfortable with the
amount of funding being spent on capital improvement projects and as such
would not be voting to adopt the budget. President Beverage commended
staff on their work on the budget and stated that with incorporation of the
strategic plan, it would be easier to evaluate the District's goals and
achievements.
Director Hawkins made a motion, seconded by Director Melton, to approve
Resolution No. 11-09 Adopting the Budget for Fiscal Year 2011112 and
Rescinding Resolution No. 10-16. Motion carried 3-1-1 by roll call vote with
Director Kiley voting No.
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' 8.3. Proposed Budgeted Positions for Fiscal Year 2011/12
Mrs. Knight provided the Board with a summary of the proposed staffing
needs for the next fiscal year. Mrs. Knight then responded to questions from
the Board regarding the hiring of new staff for the maintenance of the newly
acquired sewer system in Yorba Linda.
Director Kiley made a motion, seconded by Director Melton, to adopt
Resolution No. 11-10 Approving the Budgeted Positions for Fiscal Year
2011112 and Rescinding Resolution No. 10-17. Motion carried 4-0-1 by roll
call vote.
8.4. Appropriations Limit for Fiscal Year 2011/12
Mr. Parker summarized the purpose of the resolution and the factors used to
calculate the District's appropriations limit.
Director Hawkins made a motion, seconded by Director Kiley, to approve
Resolution No. 11-11 Adopting the Appropriations Limit for Fiscal Year
2011112. Motion carried 4-0-1 by roll call vote.
8.5. Reserves Policy for Fiscal Year 2011/12
Mr. Parker provided the Board with an overview of the changes made from
the previous year's policy including the addition of a new reserve and
' clarifying language. The dollar amount of reserves will remain the same as
the prior year.
Director Melton made a motion, seconded by Director Hawkins, to approve
Resolution No. 11-12 Adopting the Financial Reserves Policy for Fiscal Year
2011112. Motion carried 4-0-1 by roll call vote.
8.6. Ratify Prior Action to Adopt Resolution No. 11-13 Lowering the District's
Water Conservation Stage Restriction from Stage 2 to No Stage -
Permanent Restrictions Only
Mr. Vecchiarelli explained that the Board unanimously adopted a resolution
lowering the District's Water Conservation Stage Restriction at the last
meeting. Staff is now presenting this resolution to the Board for formal
ratification.
Director Kiley made a motion, seconded by Director Melton, to ratify the
adoption of Resolution No. 11-13 Lifting Stage 2 Watering Restrictions.
Motion carried 4-0-1.
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8.7. Authorization to Invest in Local Agency Investment Fund ,
Mr. Parker explained that the District had been investing in LAIF up until
2006. In order to begin investing in this fund once again, the Board must
adopt a resolution authorizing this action. Mr. Parker then responded to
questions from the Board regarding the reasons for closing the original
account, the expected yield and risk to the loss of principal.
Director Kiley made a motion, seconded by Director Hawkins, to approve
Resolution No. 11-14 Authorizing Investment of Monies in the Local Agency
Investment Fund. Motion carried 4-0-1 by roll call vote.
8.8. Amendment of Board Rules for Organization and Procedure
Mr. Vecchiarelli explained that the main purpose for updating these rules
was to allow for the creation of 3 joint agency committee meetings.
Director Hawkins made a motion, seconded by Director Melton, to approve
Resolution No. 11-15 Amending the Board of Directors Rules for
Organization and Procedure and Rescinding Resolution No. 07-06. Motion
carried 4-0-1 by roll call vote.
President Beverage suggested that the first meeting of the Joint Committee
with the City of Yorba Linda be held sometime in July.
8.9. OPEB Liability Pay Down '
Mr. Parker provided a brief history of this liability and reasons for the partial
pay down at this time.
Director Kiley made a motion, seconded by Director Melton, to authorize staff
to deposit $162,817.77 to the California Employees Retirement Benefit Trust
for Fiscal Year 2010111 to pay down a portion of the District's Other Post
Employment Benefits Liability. Motion carried 4-0-1.
8.10. Sewer Financial Model
Mr. Parker explained that staff was requesting an amendment to the existing
agreement with Raftelis Financial Consultants to include sewer expenses
and revenues into the financial model in the District's rate study. This work
would also incorporate financial impacts associated with operating and
maintaining the sewer system acquired from the City of Yorba Linda.
Director Hawkins made a motion, seconded by Director Kiley, to approve an
amendment in the amount of $10,000 to the existing Professional Services
Agreement with Raftelis Financial Consultants to add a deliverable of a
Sewer Financial Model. Motion carried 4-0-1.
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' 8.11. Amendment of District Slogan
Mr. Micalizzi stated that the Public Information-Technology Committee (now
called the Public Affairs-Communications-Technology Committee), had
previously discussed amending the District's slogan to include the word
"independent". Staff reported it would be timely to consider this change now
before ordering new promotional materials at the beginning of the next fiscal
year.
Director Hawkins made a motion, seconded by Director Melton, to amend
the District's slogan to: Independent, Reliable & Trusted Service for more
than 100 Years. Motion carried 4-0-1.
9. REPORTS. INFORMATION ITEMS AND COMMENTS
9.1. President's Report
President Beverage reported that he and Director Melton would be assisting
staff with food preparation for the All Hands meeting scheduled June 30,
2011.
9.2. Directors' Reports
Director Hawkins expressed his appreciation to staff for the distribution of the
spring newsletter.
' 9.3. General Manager's Report
Mr. Vecchiarelli reported that the annual employee recognition dinner is
scheduled for December 9, 2011 at the Yorba Linda Country Club.
9.4. General Counsel's Report
Mr. Kidman introduced Mr. Beltran and briefly commented on the
anniversary of the 1911 blanket easement for the original Yorba Linda Tract.
Mr. Kidman offered to provide the Board with a presentation regarding the
matter at a future Board meeting.
9.5. Future Agenda Items and Staff Tasks
Director Kiley requested that the tour of the Brea Police Department be
rescheduled. President Beverage suggested rescheduling for some time in
July when the full Board is available to attend.
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10. COMMITTEE REPORTS '
10.1. Executive-Administrative-Organizational Committee
(Beverage/Hawkins)
Minutes of the meeting held June 21, 2011 were provided at the meeting.
Directors Beverage and Hawkins attended. Matters discussed during the
meeting included: Amendment of Board Rules for Organization and
Procedure; Committee Assignments for Strategic Plan Initiatives; Elk
Mountain Joint Use Consideration; Orange County Grand Jury
Compensation Survey of Water and Sanitation Districts; Board
Communications Allowance; Draft Facilities Use Policy and Agreement;
OCSD Board Representation; Grant Proposals; Legal Counsel Attendance at
Board of Directors Meetings; and General Counsel's Monthly Summary
Report.
Meeting scheduled July 19, 2011 at 4:00 p.m.
10.2. Finance-Accounting Committee
(Collett/Kiley)
Minutes of the meeting held June 13, 2011 were provided in the agenda ,
packet. Directors Collett and Kiley attended. Matters discussed during the
meeting included: Sewer Financial Model; Authorization to Invest in Local
Agency Investment Fund; OPEB Liability Pay Down; 2008 COP Reserve
Funds Investment; April 2011 Budget to Actual Results; Investment Report
Through April 2011.
Meeting scheduled July 11, 2011 at 4:00 p.m.
10.3. Personnel-Risk Management Committee
(Kiley/Beverage)
Minutes of the meeting held June 14, 2011 were provided in the agenda
packet. Directors Kiley and Beverage attended. Matters discussed during
the meeting included: Status of Human Resources and Risk Management
Activities; and Status of Recruitments and Authorized/Budgeted Positions.
Meeting scheduled July 12, 2011 at 4:00 p.m.
10.4. Planning-Engineering-Operations Committee
(Melton/Collett)
Meeting scheduled July 7, 2011 at 4:00 p.m.
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t 10.5. Public Affairs-Communications-Technology Committee
(Hawkins/Melton)
Minutes of the meeting held June 17, 2011 were provided in the agenda
packet. Directors Hawkins and Melton attended. Matters discussed during
the meeting included: Lease Agreement for Two Copiers; Review of District
Slogan; Elk Mountain Neighborhood Outreach; Water Conservation Signs;
New Sewer Customer Outreach; Dynamics GP Consultant; and
Computerized Maintenance & Management System Project Status.
Meeting scheduled July 13, 2011 at 12:00 p.m.
10.6. MWDOC/OCWD Ad Hoc Committee
(Beverage/Hawkins)
Meeting scheduled July 26, 2011 at 4:00 p.m.
Director Hawkins stated that he would not be available to attend this
meeting.
10.7. Citizens Advisory Committee
(Beverage)
' Meeting scheduled June 27, 2011 at 8:30 a.m.
Director Kiley suggested that a tour of the Diemer water treatment plant be
arranged for the Citizens Advisory Committee. President Beverage
suggested arranging the tour once construction at the facility was complete.
11. INTERGOVERNMENTAL MEETINGS
11.1. MWDOC Board - June 15, 2011 (Melton/Staff)
Director Melton attended and reported that MWDOC's Urban Water
Management Plan had been adopted during the meeting. MWDOC staff
also provided a report on the results of the recent OC Water Summit. Mr.
Vecchiarelli then responded to questions from the Board regarding "water
"wheeling".
11.2. OCWD Board - June 15, 2011 (Kiley/Staff)
Director Kiley attended and reported that a 90th birthday celebration for
OCWD Board Member, Irv Pickier, which was held prior to the meeting.
11.3. YL Planning Commission - June 15, 2011 (Hawkins)
' Director Hawkins attended and reported that while there were 5 items on the
agenda, none directly affected the District.
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11.4. YL City Council - June 21, 2011 (Melton) '
Director Melton attended and commented on a presentation regarding the
relocation of the SARI line which was provided during the meeting. This
same presentation will be provided to the Board at the July 28, 2011
meeting.
12. BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1. Meetings from June 24, 2011 -July 31, 2011
The Board reviewed the listed meetings and made no changes.
Mayor Rikel left the meeting at this time.
13. CONFERENCES AND SEMINARS
13.1. ISDOC Quarterly Meeting - June 30, 2011 (Hawkins/Kiley)
OC Tax Roses, Radishes & Royalty Awards Dinner - July 7, 2011 (TBD)
Elk Mountain Practice Field Community Outreach Meeting - July 21, 2011
(TBD)
MWDOC Water Policy Forum & Dinner - July 21, 2011 (TBD) '
The Board briefly discussed their attendance at these meetings. It was
decided that invitations to the Roses, Radishes & Royalty Awards Dinner
would be extended to management staff and the Citizens Advisory
Committee in addition to the Board as the District would be sponsoring a
table of 10 for the event. Directors Beverage and Hawkins will attend the Elk
Mountain Practice Field Community Outreach Meeting and Directors Kiley
and Melton will attend the MWDOC Water Policy Forum & Dinner.
Director Hawkins made a motion, seconded by Director Kiley, to authorize
Director attendance at the above listed meetings. Motion carried 4-0-1.
A brief recess was declared at 8:43 p.m.
All staff members with the exception of Mr. Vecchiarelli left the meeting at this time.
The meeting reconvened at 8:48 p.m.
15. CLOSED SESSION CONTINUED
The meeting was adjourned to Closed Session at 8:48 p.m. All Directors in
attendance were present. Also present were Messrs. Vecchiarelli, Kidman and ,
Beltran.
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' 6.1. 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: American Security Insurance Company, et al vs. YLWD
(OC Superior Court - Case No. 00348304)
Name of Case: Buc vs. YLWD (OC Superior Court - Case No.
00409755)
Name of Case: Interinsurance Exchange of the Automobile Club vs.
YLWD (OC Superior Court - Case No. 00425404)
Mr. Vecchiarelli left the meeting following discussion of this matter.
15.1. Public Employee Discipline/Dismissal/Release
Pursuant to Section 54957 of the California Government Code
The Board reconvened in Open Session at 10:30 p.m. President Beverage
announced that no action was taken during either Closed Session that was required
to be reported under the Brown Act.
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16. ADJOURNMENT '
16.1. The meeting was adjourned at 10:32 p.m. The next regular meeting of the
Board of Directors will be held July 14, 2011 at 8:30 a.m.
Ke neth R. Vecchiarelli
Board Secretary
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