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HomeMy WebLinkAbout2005-06-09 - Board of Directors Meeting Minutes2005-83 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING June 9, 2005, 8:30 A.M. The June 9, 2005 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Michael J. Beverage at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL Michael J. Beverage, President Paul R. Armstrong, Vice President William R. Mills John W. Summerfield STAFF PRESENT Michael A. Payne, General Manager Arthur G. Kidman, General Counsel Kenneth Vecchiarelli, Asst G.M. Beverly Meza, Business Manager Lee Cory, Operations Manager VISITORS PRESENT Brian Frame, Toll Brothers President Beverage stated he would not vote on Item No. 3 because of an economic conflict of interest. CONSENT CALENDAR (Items 1 through 4) On a motion by Director Mills, seconded by Director Summerfield, the Board of Directors voted 4-0 to approve Consent Calendar Items 1, 2 and 4, with Vice President Armstrong abstaining from voting on Item 1 due to his absence from that meeting. 1. Minutes of the Regular Board of Directors meeting held May 26, 2005. Recommendation: Approve minutes. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $756,174.39 4. Payment of bills, refunds, and wire transfers Recommendation: Ratify and authorize disbursements in the amount of $56,763.02 3. Quarter Horse Reservoir Expansion - Job No. 200316. Recommendation: Approve: 1) Change Order No. 5 for a time extension of 35 calendar days; and 2) Progress Payment No. 17 in the net amount of $108,963 to Schuler Engineering Corporation for construction of the Quarter Horse Reservoir Expansion. -1- 2005-84 Vice President Armstrong asked for a motion to hear Item 3. Director Mills moved to hear Item 3, with Director Summerfield seconding the motion. The Board of Directors voted 3-0 to approve Item 3. The Board of Directors went into Closed Session at 8:33 a.m. All Directors were present. Also present were General Manager Payne, Assistant General Manager Vecchiarelli and General Counsel Kidman. ADJOURN TO CLOSED SESSION 5. a. Conference with Legal Counsel regarding pending litigation to which the District is a party (Justification for Closed Session is Subsection (a) of Section 54956.9), Superior Court of California, County of Orange, Central Justice Center, Case No. 11919 Gateway Pacific Contractors, Inc. b. Conference with Labor Negotiator. Government Code Section 54957.6, Association, employee organization, representative. (Justification for Closed Session is Yorba Linda Water District Employees and Ken Vecchiarelli, YLWD designated Director Collett entered the meeting at 8:37 a.m. RECONVENE IN OPEN SESSION The Board of Directors reconvened in Open Session at 9:17 a.m. Operations Manager Cory, Business Manager Meza, Administrative Secretary Cloonan and Brian Frame of Toll Brothers rejoined the meeting. Assistant Administrator Robinson joined the meeting. CLOSED SESSION REPORT Vice President Armstrong reported two items were added to Closed Session agenda due to urgency. The first item regarded the suit with the Orange County Water District, and the second item involved a decision on the General Manager's job description and salary. On a motion by Director Mills, seconded by Director Summerfield, the Board of Directors voted 5-0 to approve the addition of these two items to the Closed Session. ACTION CALENDAR 6. 2005 Domestic Water System Master Plan. Assistant General Manager Vecchiarelli presented the item and gave a brief overview. Carollo Engineers were brought in to update the master plan. Proposed development plans out to 2010 were considered. Carollo worked with staff to analyze the agency's proposed improvements. -2- 2005-85 Director Summerfield asked if this was a revision to the 1978 master plan and if it would be the standing document for the next twenty years. Assistant General Manager Vecchiarelli responded that items needing refinement or updating will be kept track of, and there may be reposting every five years. Director Summerfield mentioned the PEO Committee went through the document, considered it and sent it back to Carollo for revisions. The revised copy was a vast improvement and was a very comprehensive document. The District uses one acre foot of water per connection. Director Mills asked if the District is doing enough for conservation. Lot sizes in Yorba Linda are a factor. Assistant Administrator Robinson stated an acre foot per service account is per capita for the entire District with the water also going to the green belts. Director Mills asked if it is possible to take out the city's water use to get an idea of where the District stands. Water conservation is the biggest inroad the District can make in savings according to Assistant General Manager Vecchiarelli. Vice President Armstrong asked that a PEO Committee agenda item should cover how the District will keep note of modifications to the Water Master Plan. General Manager Payne stated a list of dates and revisions will be kept to monitor changes. President Beverage asked that a finished executive copy and updates be distributed to the Directors. On a motion by Director Collett, seconded by Director Summerfield, the Board of Directors voted 5-0 to accept the 2005 Water Master Plan as prepared by Carollo Engineers. 7 Investment Report for the quarter ending March 31, 2005. Business Manager Meza presented the report. Director Mills stated it would be useful to see a percent from a year ago for comparison purposes. General Manager Payne reported the Finance Committee is reviewing investment policies from other districts. Director Collett asked about the contractual fee arrangements between the District and Wells Fargo. Staff reported they will provide the Finance Committee with a report. The Wells Fargo accounts will be investigated. Director Summerfield is still concerned with the cash accounts not earning interest. Business Manager Meza will check these accounts again. On a motion by Director Mills, seconded by Vice President Armstrong, the Board of Directors voted 5-0 to receive and file the investment report as presented. Brian Frame left the meeting at 9:33 a.m. -3- 2005-86 8. Financial Statements for nine months of fiscal year 2004-05 ending March 31, 2005. Business Manager Meza presented the report on the financial statements. On a motion by Director Mills, seconded by Vice President Armstrong, the Board of Directors voted 5-0 to receive and file the financial statements as presented. DISCUSSION CALENDAR' 9. Fiscal Years 2005-06 and 2006-07 Budget Report. General Manager Payne gave a brief overview of the budget. Final documents will be prepared for approval by the Board. Some very minor changed were made to the Operating Fund Summary. A new section was distributed with the updated numbers. While the budget is a very aggressive plan, it is also reasonable. President Beverage asked the Directors to note any changes they want to make. Page numbers will be inserted into the final copy. President Beverage noted a change in the Budget Message, Section 2, Management Goals, Item 2 under Capital Improvement/Replacement Projects to read " the District to purchase the less expensive groundwater." Director Summerfield noted a change in language in the General Manager's Message, Outlook for Fiscal Years 2005-06 and 2006-07. The first sentence should read will need to address in the next two years." Director Mills had a general comment about groundwater production. It appears the District is going to continue in the next two years at 50%. Assistant Manager Vecchiarelli said the reason we have to stay at 50% is because of the Basin Production Percentage. President Beverage suggested stating the 50% the District is pumping equals the 64% BPP. Staff will look at page 1-16 to clarify this. President Beverage had a question generated from the workshop. Assistant General Manager Vecchiarelli gave some explanation about the $5.2 million deficit and the $9.6 million in the Annexation Fund. This $5.2 million will come out of depreciation revenue, which means it will essentially come out of the $9.6 million. Vice President Armstrong asked about General Manager Payne stated these Department as part of water quality and Engineering Department budget. maintaining records of backflow testing. records are kept by the Engineering could be found in Section 6, Item 8, in the -4- 2005-87 Director Mills asked about the meter replacement program and how much additional revenue would be generated. Business Manager Meza said the revenue has not been figured into the budget. The payback will be 5-7 years with the meter replacement program taking two years. Smaller meters will be replaced by an outside firm. Large meters will be replaced in house. President Beverage commented the proposed budget is an excellent document totally different from what he has seen since joining the Board. He extended kudos to Mike Payne, Beverly Meza, Ken Vecchiarelli, Lee Cory and everyone else who participated. This item will come back to the Board for final approval. A recess was declared at 10:06 a.m. Beverly Meza left the meeting. During the recess, the members of the Board surveyed the District's new Hydro Excavator, which was parked outside. The meeting reconvened at 10:20 a.m. President Beverage stated for the record that Vice President Armstrong had left the meeting. REPORTS, INFORMATION ITEMS AND COMMENTS 10. a. President's Report The President had nothing to report. b. Directors Reports Director Mills reported that he and General Manager Payne attended a MWDOC dinner where Debra Mann, COO of Metropolitan Water, spoke. General Counsel Kidman also attended. c. General Managers Report The General Manager had nothing to report. d. General Counsel's Report General Counsel Kidman stated the Ortiz Bill, SB 393, is dead. AB1234, the Salinas Bill, passed out of the Assembly and is before the Senate Local Government Committee. There is a possibility one of the Ortiz Bill's central ideas having to do with auditing may be amended into the Salinas Bill. General Counsel Kidman recommended having Sacramento Advocates look at SB1087. The District would be required to take on all customers as long as water is available and the customer is willing to abide by the rules. The bill is aimed at low-cost and senior housing. This bill tries to require public agencies to give preference, which is just as illegal as discrimination. The Kuehl Bill, which is essentially a water inventory bill is the other big item in the Legislature. An energy component has been added to the bill. -5- 2005-88 COMMITTEE REPORTS 11. a. Executive-Administrative-Organizational Committee (Beverage/Armstrong) President Beverage reported that the meeting held June 8 involved discussion of the budget. Meeting scheduled for June 21, 4:00 p.m. b. Finance-Accounting Committee (Mills/Collett) Meeting scheduled for June 14, 4:00 p.m. c. Personnel-Risk Management Committee (Collett/Mills) Meeting scheduled for June 13, 4:00 p.m. d. Planning-Engineering-Operations Committee (Armstrong/Summerfield) Minutes of meeting held June 2. Director Summerfield reported the committee talked about the water master plan. The District is looking at installing a new phone system now instead of waiting for the completion of the new administration building. The telephone system will be transferable to the new administration building. Meeting scheduled for July 7, 4:00 p.m. e. Public Information Committee (Summerfield/Beverage) Minutes of meeting held June 6, 4:00 p.m. will be included in the June 23, 2005 agenda. President Beverage reported the committee looked over the West Coast Magazine article, talked about the annual report and looked at some of the Urban Water Management Plan. A decision was made to leave committee oversight of this plan with the Public Information Committee. Reschedule meeting for July. f. Building Ad Hoc Committee (Beverage/Summerfield) Minutes of meeting held June 3. President Beverage reported the committee discussed a meeting the architects had with the City of Placentia. The city wants the District to pay one million dollars to put in a city storm drain. The committee will look on site alternatives instead, which could create great PR potential. The committee also discussed the exterior treatment of the building and the water feature (pond vs. dry stream bed with xeriscape). Director Summerfield spoke about the possible features of the center column and the fagade near the boardroom. -6- 2005-89 g. MWDOC Ad Hoc Committee (Beverage/Armstrong) (Summerfield alternate) Minutes of meeting held May 25, 4:00 p.m. President Beverage reported the committee discussed grant funding. MWDOC said they will work with the District. Director Summerfield attended the meeting in place of Vice President Armstrong. He asked the minutes and committee report reflect this fact. Meeting scheduled for July 25, 4:00 p.m. h. OCWD Ad Hoc Committee (Beverage/Mills) Meeting scheduled for July 18, 4:00 p.m. INTERGOVERNMENTAL MEETINGS 12. a. MWDOC Policy Briefing, June 2. Director Mills stated he had already covered this item earlier. b. WACO June 3. No one attended. c. Yorba Linda City Council, June 7. No one attended. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after June 9, 2005. Agenda is available in the District office prior to meeting. June MWDOC/MWD Joint Workshop, June 1, 8:30 a.m. Staff OCWD Board, June 1, 5:00 p.m. Staff Planning-Engineering-Operations Committee, June 2, 4:00 .m. Armstron /Summerfield WACO, June 3, 7:30 a.m. Mills Public Information Committee, June 6, 4:00 p.m. Summerfield/Bevera e ISDOC Board, June 7, 7:30 a.m. Staff Yorba Linda City Council, June 7, 6:30 p.m. Summerfield Yorba Linda Planning Commission (Special) June 15, 6:30 .m. Mills Personnel-Risk Management Committee, June 13, 4:00 .m. Collett/Mills Finance-Accounting Committee, June 14, 4:00 .m. Mills/Collett MWDOC Board, June 15, 8:30 a.m. Staff OCWD Board, June 15,5:00 p.m. Staff Executive-Administration-Or anizational Comm., June 21, 4:00 p.m. Beverage rmstrong Yorba Linda City Council, June 21, 6:30 p.m. Collett Yorba Linda Planning Commission, June 29, 6:30 .m. Armstrong ISDOC Membership June 30, 11:30 a.m. Mills -7- 2005-90 Inly WACO, Jul 1, 7:30 a.m. Mills Yorba Linda City Council, July 5, 6:30 p.m. Cancelled*** Summerfield MWDOC/MWD Joint Workshop, Jul 6, 8:30 a.m. Staff OCWD Board, Jul 6, 5:00 .m. Staff Plan nin -En ineerin -O erations Committee, Jul 7, 4:00 .m. Armstron /Summerfield Personnel-Risk Management Committee, Jul 11, 4:00 .m. Collett/Mills Finance-Accounting Committee, Jul 12, 4:00 .m. Mills/Collett Yorba Linda Planning Commission, Jul 13, 6:30 .m. Mills OCWD Ad Hoc Committee, Jul 18,4:00 .m. Beverage/Mills Executive-Admin-Or anizational Committee, Jul 19, 4:00 .m. Beverage/Armstrong Yorba Linda City Council, Jul 19, 6:30 .m. Collett MWDOC Board, Jul 20, 8:30 a.m. Staff OCWD Board, Jul 20, 5:00 .m. Staff MWDOC Ad Hoc Committee, Jul 25, 4:00 .m. Bevera a/Summerfield Yorba Linda Planning Commission, Jul 27, 6:30 .m. Armstrong indicates this person is substituting for the committee member. Director Summerfield has an obligation the first Tuesday of every month and asked to switch meetings of the Yorba Linda City Council with Director Collett. Director Collett agreed to attend the first meeting of the month commencing in July, and Director Summerfield will attend the second meeting. 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. None ADJOURNMENT On a motion by Director Mills, seconded by Director Collett, the Board of Directors voted 4-0 to adjourn at 10:40 A.M. a.m. to a regular meeting of the Board of Directors scheduled for Thursday, June 23, 2005 at 8:30 a.m. at 4622 Plumosa Drive, Yorba Linda, CA 92886. Michael A. Payne Secretary/General -8-