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HomeMy WebLinkAbout2005-11-22 - Board of Directors Meeting Minutes2005-173 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS ADJOURNED REGULAR MEETING November 22, 2005, 8:00 A.M. The November 22 adjourned regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Michael J. Beverage at 8:00 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 Ric Collett John W. Summerfield DIRECTORS ABSENT AT ROLL CALL William R. Mills STAFF PRESENT Michael A. Payne, General Manager Kenneth R. Vecchiarelli, Asst. G.M. Arthur G. Kidman, General Counsel Beverly Meza, Business Manager Lee Cory, Operations Manager Amelia Cloonan, Admin Secretary Daniel Ornelas, Maintenance Worker II VISITORS PRESENT Brett Barbre, MWDOC Director MWDOC Director Barbre spoke about Lake Perris and the dam's structural issues. The dam is being drained. The lake may be dredged 200 feet and the island removed. This will create an increase in storage in Southern California. Locally, MWDOC continues to move ahead on the corridor. The tunnel needs more study and will be referred to the joint powers authority, which has been formed. Brett Barbre left the meeting at 8:09 a.m. Jim Boyd, Mark Foster, Chris Clark and Moss Carter, Toll Brothers, entered the meeting at 8:09 a.m. INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Lee Cory, Operations Manager, introduced Daniel Ornelas and recognized him on his promotion to Maintenance Worker II, Operations Department. President Beverage declared a financial conflict of interest with consent calendar Item 5. Director Collett noted he would not be voting to approve Check No. 43360 of Item 3 on the Consent Calendar. CONSENT CALENDAR (Items 1 through 7) On a motion by Vice President Summerfield, seconded by Director Summerfield, the Board of Directors voted 4-0 to approve Consent Calendar items 1, 2, 3, 4, 6 and 7. -1- 2005-174 Minutes of the Adjourned Board of Directors meeting held November 4, 2005 Recommendation: Approve minutes as presented. 2. Minutes of the Regular Board of Directors meeting held November 10, 2005. Recommendation: Approve minutes as presented. 3. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $1,166,484.29. 4. "On-Call" Professional Services Agreement for Water Systems Engineering. Recommendation: That the Board of Directors authorize the General Manager to execute a Professional Services Agreement with Tetra Tech, Inc. to provide the District with professional engineering support and services on a time and materials basis. 6. Terms and Conditions for Water Service with Placentia Linda Hospital. Recommendation: Approve the Terms and Conditions for Water Service with Placentia Linda Hospital, Job No. 100521. 7. Central Yorba Linda Pipeline Project Recommendation: Approve Progress Payment No. 7 in the net amount of $199,460.16 to Vido Artukovich and Sons, Inc./Vidmar Inc., a Joint Venture, for construction of the Central Yorba Linda Pipeline Project, Job No. 9804. Vice President Armstrong asked for a motion on Consent Calendar Item 5. On a motion by Director Summerfield, seconded by Director Collett, the Board of Directors voted 3-0-1, with President Beverage abstaining, to approve Consent Calendar Item 5. 5. Quarter Horse Reservoir Expansion - Fencing and Landscaping. Recommendation: Approve Progress Payment No. 2 in the net amount of $83,995.51 to Schuler Engineering Corporation, authorize staff to file a notice of Completion and release retention 35 days after the Notice of Completion has been recorded if no liens have been filed for the Quarter Horse Reservoir Expansion Site Improvement, Job No. 200316. The Board of Directors adjourned to Closed Session at 8:11 a.m. All Directors were present. Also present were General Manager Payne, Assistant General Manager Vecchiarelli and General Counsel Kidman. ADJOURN TO CLOSED SESSION 8. a. Conference with Legal Counsel regarding existing litigation to which the District is a party. (Justification for Closed Session is Government Code Section 54956.9(a)) Orange County Water District vs. Yorba Linda Water District. -2- 2005-175 b. Conference with Legal Counsel regarding litigation to which the District is a party. (Justification for Closed Session is Government Code Section 54.956.9(a)) Vista Del Verde II, L.P. and SWEPT LP vs. Yorba Linda Water District. RECONVENE IN OPEN SESSION The Board of Directors reconvened in Open Session at 8:23 a.m. Jim Boyd, Mark Foster, Chris Clark, Moss Carter, Lee Cory, Beverly Meza and Amelia Cloonan rejoined the meeting. Kathryn Beseau, Moreland & Associates, joined the meeting. CLOSED SESSION REPORT There was no Closed Session report. President Beverage noted that since General Counsel Kidman was in the process of reviewing the agreement and release connected to Item 9, the Board would proceed with Item 10. ACTION CALENDAR 10. Consider Sewer Subtrunks for Vista Del Verde Village IV. Assistant General Manager Vecchiarelli presented the report. Because item 9 was still under review, General Manager Payne noted the motion would need to be changed to state "upon execution of the agreement"... . On a motion by Director Collett, seconded by Vice President Armstrong, the Board of Directors voted 4-0 to authorize the President and Secretary to execute the Facility Finance, Design and Construction Agreement with Vista Del Verde, L.P. and SWEPI, L.P., as amended, for the backbone sewer mains within Village IV, Job No. 200518. The Board next considered Item 13. 13. Consider Negative Declaration for the Vista Del Verde Village IV Water Transmission Pipelines. Assistant General Manager Vecchiarelli presented the report. On a motion by Vice President Armstrong, seconded by Director Summerfield, the Board of Directors voted 4-0 to adopt the Negative Declaration and authorize staff to file the Notice of Determination for the Zone 3 and 4 Water Transmission Pipelines in the extension of Lakeview Avenue within Village IV of the Vista Del Verde Development, YLWD Job No. 200414. General Counsel Kidman, Jim Boyd, Mark Foster stepped out of the meeting at 8:28 a.m. The Board next considered Item 12. -3- 2005-176 12. Consider Construction Award for the Richfield Building Modifications. Assistant General Manager Vecchiarelli presented the report. He explained this is for Phase I I and,went over the plans. President Beverage asked that figures be presented to the Finance Committee. On a motion by Director Summerfield, seconded by Vice President Armstrong, the Board of Directors voted 4-0 to authorize the General Manager to execute a Construction Agreement, subject to approval as to form by General Counsel, with C.G. Construction to construct the Richfield Building Modifications Project as prepared by J.R. Miller & Associates, Architects and Engineers for Project No. 200517. Jim Boyd and Mark Foster rejoined the meeting at 8:30 a.m. The Board next considered Item 14. 14. Consider Addendum to Consultant Agreement with Carollo Engineers. Assistant General Manager Vecchiarelli stated this component is for the booster station. On a motion by Vice President Armstrong, seconded by Director Summerfield, the Board of Directors voted 4-0 to approve an Addendum to the Consultants Agreement with Carollo Engineers in the amount of $96,601 for improvements to the Santiago Booster Station, Job No. 200028. 15. Consider National Water Resources Association California Caucus Ballot. Assistant Administrator Robinson presented the report. ACWA is a member of NWRA. The Directors are entitled to five votes. The members of the Board were familiar with Messrs. Clark and Fraser. On a motion by Vice President Armstrong, seconded by Director Collett, the Board of Directors voted 4-0 to vote for Wayne A. Clark and John P. Fraser to serve on the Board of Directors of the National Water Resources Association (NWRA). General Counsel Kidman returned to the meeting at 8:37 a.m. President Beverage stated staff requested addition of an item that came up after the agenda was published. The item involves some lots in the first part of Village III and deals with low pressure. A standard declaration of restrictive covenants should be recorded with the County Recorder before the lots are sold. The recommendation would be to approve the Declaration of Restrictive Covenants with Toll Brothers subject to approval by General Counsel. -4- 2005-177 On a motion by Vice President Armstrong, seconded by Director Summerfield, the Board of Directors voted 4-0 to add item 15a to the Action Calendar. 15a. On a Motion by Director Summerfield, seconded by Ric Collett, the Board of Directors voted 4-0 to approve a Declaration of Restrictive Covenants with Toll Brothers for lots in the first part of Village III, subject to review by General Counsel, to be recorded with the County Recorders office before sale of the lots. Jim Boyd, Chris Clark, Moss Carter and Lee Cory left the meeting at 8:49 a.m. Assistant General Manager Vecchiarelli left the meeting at 8:52 a.m. 9. Consider Settlement Agreement and Mutual Release with Vista Del Verde. General Manager Payne stated all detail points presented in Closed Session have been put into an agreement prepared by General Counsel Kidman's office. The District believes this is a fair settlement for both parties, and it will allow the developer to move forward. General Counsel Kidman stated there is still on going work, but the parties have tried to identify everything that is open. The signature page needs modification, because there is no signature line for the President. There is a requirement in Section 2 of the agreement to issue notices to proceed on Village III assuming the checks are in hand. With modification of the signature page, the District is ready to sign the agreement. On a motion by Director Summerfield, seconded by Director Collett, the Board of Directors voted 4-0 to approve and authorize the President and Secretary to execute the Settlement Agreement and Mutual Release by and between the Yorba Linda Water District, Swepi, L.P., Also Known As Shell Western E&P, Inc., Toll Brothers, Inc. and Vista Del Verde II, L.P. 11. Consider the Annual Audit of Financial Statements for July 1, 2004 through June 30, 2005. Kathryn Beseau, Partner, Moreland & Associates, presented the report. She stated she met with the Finance Committee. Today Ms. Beseau brings the final reports in final form to the Board. She went over the items in the order they appeared in the agenda packet. The letter addressed to the Board of Directors, the management letter, informs the Board of any areas where Moreland & Associates considers there might be improvement. Nothing came to their attention that they considered needed attention. The third letter in the agenda, which is addressed to the Board, deals with internal controls on their audit process. No new accounting policies were adopted this year. The disclosure on investments was new this year. There were no audit adjustments that would have had a significant impact on financial statements. There were no disagreements with management. -5- 2005-178 Letter number two in the agenda is the independent auditors' report where Moreland & Associates opines on District worksheets. In this letter, Moreland stated the formula was followed correctly, and the calculations are correct. This letter insures the District does not receive more taxes than the District is entitled to receive. On page one of the Financial Statement, the auditors' opinion letter states the financial statements are fairly presented. On page three, the management discussion and analysis prepared by the district presents information that is not audited and has only limited review. The Managements Discussion and Analysis on pages 3 through 10 was prepared by the District and is not audited, but there is limited review. The Statement of Net Assets on page 11 shows the total net assets of the District at June 30, 2005 as $140,000,000. $94,000,000 of that is capital assets. $84,000,000 of net assets is infrastructure, i.e. pipelines and reservoirs. $22.3 million is restricted assets for debt issues. There are really only $5.3 million of unrestricted net assets. This method reports real money and infrastructure. The footnote on page 22 of capital assets gives a further breakdown. The Operating Statement section on page 12 shows a loss of $1.8 million. Depreciation factors into creating operating loss. Operating revenues were significantly decreased by loss of property tax revenues amounting to $875,000 this year. The Breakdown of Statement of Net Assets on page 33 shows where net assets are located. Assets exceed liabilities by $54 million. On page 35 there is a further breakdown of costs in the sewer system. Michael Robinson left the meeting at 9:09 a.m. On page 34, Capital Contributions total $6.7 million. On page 25, there is a footnote describing the makeup of those figures. Pages 36 and 37 show a further breakdown of capital assets. The cash footnote on page 18 is entirely different from prior years. Cash and investments must be broken down to show risk categories. Of $40 million in investments, $38.5 are invested for 12 months or less. On a motion by Director Summerfield, seconded by Director Collett, the Board of Directors voted 4-0 to receive and file the Annual Audit of Financial Statements for July 1, 2004 through June 30, 2005. Kathryn Beseau left the meeting at 9:22 a.m. -6- 2005-179 REPORTS. INFORMATION ITEMS AND COMMENTS 16. a. President's Report President Beverage wished everyone a Happy Thanksgiving. b. Directors Reports Vice President Armstrong handed out a sheet to each Board member, so they could indicate their preferences for committee assignments in the coming year. He asked these be returned to him. c. General Managers Report General Manager Payne reported he and Director Mills will attend ACWA's Fall Conference next week. The Central Yorba Linda pipeline was successfully tied in last Friday evening. Water is flowing. Vice President Armstrong expressed concern about air vents. General Manager Payne said the District will look into the air vents issue. d. General Counsel's Report General Counsel Kidman thanked the Board and staff for the card sent to him in sympathy at the loss of his mother. COMMITTEE REPORTS 17. a. Executive-Administrative-Organizational Committee (Beverage/Armstrong) Minutes of the meeting held November 15. President Beverage reported the committee discussed the change in Board assignments, the annual review of the Board's compensation and considered the amendment to the District's annexation policy. Meeting scheduled for December 20, 4:00 p.m. b. Finance-Accounting Committee (Mills/Collett) Minutes of meeting held November 8. Director Collett reported Moreland and Associates gave a presentation to the committee regarding the 2004/2005 audit. The committee also received a status report on investments. Meeting scheduled for December 13, 4:00 p.m. c. Personnel-Risk Management Committee (Collett/Mills) Minutes of meeting held November 7. The committee discussed adding District property, vehicles and equipment to the ACWA/JPIA property insurance pool. The committee considered a claim filed against the District. Also discussed were updated job descriptions and a health benefit rates update. The meeting of December 12 will be rescheduled due to a conflict with a change in schedule to the MWDOC Ad Hoc Committee. d. Planning-Engineering-Operations Committee (Armstrong/Summerfield) -7- 2005-180 Minutes of meeting held November 3. The committee considered the declaration of certain vehicles and equipment as surplus. The following items were also covered: brief summary of active capital projects, the status of the in-lieu program, telephone system update, groundwater production capacity, construction bid for warehouse offices and crew's quarters modifications and the East Lake Village low pressure area response. Meeting scheduled for December 1, 4:00 p.m. e. Public Information Committee (Summerfield/Beverage) Minutes of meeting held November 14. Director Summerfield reported the committee went over the 2005 YLWD Annual Report extensively. The report will probably be redone completely and will come back to the committee. On December 8, the annual report will come to the Board. The West Coast Magazine article was discussed as was the Waterlines articles. The committee went over the public events: Placentia Heritage Days Parade, Yorba Linda Fiesta Days Parade and Street Faire and discussed plans for a groundbreaking and dedication of District facilities. Meeting scheduled for November 23, 4:00 p.m. f. Building Ad Hoc Committee (Beverage/Summerfield) g. MWDOC Ad Hoc Committee (Beverage/Armstrong) A meeting is scheduled for December 12, 4:00 p.m. INTERGOVERNMENTAL MEETINGS 18. a. Yorba Linda City Council, November 15 Director Summerfield reported an item of interest was a memorandum of understanding regarding the Linda Garden Apartments on Plumosa. President Beverage reported the City of Yorba Linda has called the District to ascertain interest in selling the District's site on Plumosa. A new requirement for complexes is that a recreation building must be present. There is already interest from the Boys and Girls Club. This site is not part of the redevelopment area. b. Yorba Linda Planning Commission, November 16 Director Armstrong attended. The meeting was dedicated to the Downtown development EIR and zoning change. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after November 22, 2005. Agenda is available in the District office prior to meeting. Committee meeting assignments will be continued as is until the first meeting in January 2006. -8- 2005-181 Public Information Committee, November 23, 4:00 p.m. I Summerfield/Beverage Ilcromhar Planning-Engineering-Operations Committee, Dec 1, 4:00 .m. Armstron /Summerfield WACO, December 2, 7:30 a.m. Mills Yorba Linda City Council, December 6, 6:30 .m. Collett MWDOC/MWD Joint Workshop, December 7, 8:30 a.m. Staff OCWD Board, December 7, 5:00 p.m. Staff Personnel-Risk Management Committee, December 12, 4:00 .m. Collett/Mills* (Beverage) Finance-Accounting Committee, December 13, 4:00 p.m. Mills/Collett Yorba Linda Planning Commission, December 14, 6:30 .m. Mills Executive-Admin-Or anizational Committee, December 20, 4:00 .m. Beverage/Armstrong Yorba Linda City Council, December 20, 6:30 .m. Summerfield MWDOC Board, December 21, 8:30 a.m. Staff OCWD Board, December 21, 5:00 p.m. Staff *(alternate) CONFERENCES AND SEMINARS 19. 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. CALFED at Crossroad: Overcoming Political Adversity, Funding Challenges and Competing Expectations featuring Joe Grindstaff, Director California Bay Delta Authority, Thursday, December 8, 2005, 6:00 p.m., The Hilton Costa Mesa. b. Community Leaders Briefing featuring Debra Man, Acting CEO/General Manager of the Metropolitan Water District of Southern California, Thursday, December 8, 7:30 - 9:00 a.m., The Villa, Orange, CA. A staff member will attend. ADJOURNMENT On a motion by Director Summerfield, seconded by Director Collett, the Board of Directors voted 4-0 to adjourn to a regular meeting of the Board of Directors scheduled for Thursday, December 8, 2005 at 8:30 a.m. at 4622 Plumosa Drive, Yorba Linda, CA 92886. v ( chael A. Payne Secretary/General Manager -9- 2005-182