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HomeMy WebLinkAbout2006-07-27 - Board of Directors Meeting Minutes2006-109 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING July 27, 2006 The July 27, 2006 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Paul R. Armstrong at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL Paul R. Armstrong, President Ric Collett, Vice President Michael J. Beverage William R. Mills John W. Summerfield STAFF PRESENT Michael A. Payne, General Manager Arthur G. Kidman, General Counsel Kenneth Vecchiarelli, Asst. G.M. Lee Cory, Operations Manager Diane Cyganik, Finance Director Michael Robinson, Asst. Administrator Amelia Cloonan, Admin Secretary John DeCriscio, Chief Plant Operator DIRECTORS ABSENT AT ROLL CALL None INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Brett Barbre, MWDOC Director, was happy to announce that Metropolitan Water District has almost completed the Diemer bypass. Christie McDaniel and Debbie Trabattoni of The OC Advocacy Group entered the meeting at 8:32 a.m. SPECIAL RECOGNITION Lee Cory, Operation Manager, introduced John DeCriscio and recognized him on his promotion to Chief Plant Operator. President Armstrong asked Christie McDaniel and Debbie Trabattoni to give an update on annexation issues. At a meeting Debbie Trabattoni attended, she spoke with several OCWD Board members who were not aware a letter had been sent to Virgina Grebbien by Mike Payne regarding annexation. She had a positive response from those Board members with whom she spoke. General Manager Payne said he received an e-mail from Virginia Grebbien, and a meeting has been set for August 22. General Counsel Kidman spoke about a conversation he had with Don Caulkins of the City of Anaheim regarding the Draft EIR. General Counsel Kidman also reported on matters involving Irvine Ranch Water District, the MOU, OCWD's current annexation policy and rates for newly annexed territories. -1- 2006-110 Debbie Trabattoni also reported Dennis Bilodeau will run for Orange City Council. Steve Sheldon and Jan DeBay are up for reelection, and Kay Barr is not running for reelection. President Armstrong thanked Christie McDaniel and Debbie Trabattoni for their presentation. CONSENT CALENDAR (Items 1 through 7) On a motion by Director Mills, seconded by Director Beverage, with Vice President Collett stating he would abstain from voting on Check Nos. 44866 and 44891 of Consent Calendar Item 2, the Board of Directors voted 5-0 to approve the Consent Calendar. 1. Minutes of the Regular Board of Directors meeting held July 13, 2006. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $810,174.43. 3. Construction of Lakeview Booster Station. Recommendation: Approve Progress Payment No. 2 in the net amount of $148,482.13 to Schuler Engineering for the construction of Lakeview Booster Station, Project No. 200505. 4. Damage Claim filed on behalf of Jonathon and Theresa Lee. Recommendation: That the Board of Directors reject and refer the damage claim filed on behalf of Jonathon and Theresa Lee to ACWA/JPIA. 5. Damage Claim filed on behalf of Deborah and Jerald Carpenter. Recommendation: That the Board of Directors reject and refer the damage claim filed on behalf of Deborah and Jerald Carpenter to ACWA/JPIA. 6. Damage Claim filed on behalf of Pai Pen Sung. Recommendation: That the Board of Directors reject and refer the damage claim filed on behalf of Pai Pen Sung to ACWA/JPIA. 7. ACWA/JPIA Workers Compensation Program renewal for July 1, 2006 through June 30, 2007. Recommendation: That the Board of Directors approve the Workers Compensation deposit premium of $121,600 for the period of July 1, 2006 through June 30, 2007, and that the Retrospective Allocation Point remains at $15,000. The Board of Director adjourned to Closed Session at 8:55 a.m. All Directors were present. Also present were General Manager Payne and General Counsel Kidman. Human Resources Manager Knight joined the Closed Session. -2- 2006-111 Ken Vecchiarelli, Lee Cory, Diane Cyganik, Amelia Cloonan, Brett Barbre, Debbie Trabatonni and Christie McDaniel left the meeting. ADJOURN TO CLOSED SESSION 8. Conference with Labor Negotiator. (Justification for Closed Session is Government Code Section 54957.6) Yorba Linda Water District Employees Association, employee organization and Michael A. Payne, General Manager and Gina Knight, Human Resources Manager, YLWD designated representatives. Gina Knight left the Closed Session at 10:00 a.m. 9. Performance Evaluation: General Manager. (Justification for Closed Session is Government Code Section 54957). RECONVENE IN OPEN SESSION The Board of Directors reconvened in open session at 10:11 a.m. CLOSED SESSION REPORT There was no Closed Session report. Ken Vecchiarelli, Lee Cory, Diane Cyganik and Amelia Cloonan rejoined the meeting. ACTION CALENDAR 10. Mitigated Negative Declaration, Richfield Administration Building. Assistant General Manager Vecchiarelli presented the report. The only comment was from Orange County Water District. They wanted to know if this project was going to be built at the Well #11 site, which is not the case. On a motion by Director Beverage, seconded by Director Mills, the Board of Directors voted 5-0 to adopt the Mitigated Negative Declaration for the Richfield Administration Building and authorize staff to file the Notice of Determination for the project. 11. Mitigated Negative Declaration, Highland Reservoir Replacement Project. Assistant General Manager Vecchiarelli presented the report. This project is more complex due to trees, fauna and migrating birds. This report went to the state clearing house for a 30-day public review. One comment was received from a non-profit organization interested in tracking natural resources that asked for clarification of the project. Between February and September there can be no clearing of brush or trees in the area. There was a recent cost adjustment from $9 to $9.5 million. Director Mills asked about removal of the oil wells and equipment. General Counsel Kidman responded that in this case bonds were not posted by the owners of the wells for costs of abandonment. Staff needs to get a ballpark figure for these costs. Assistant General Manager Vecchiarelli stated the biggest variable -3- 2006-112 would occur if mitigation for contamination needed to be performed. General Counsel Kidman further stated the District believes in a legal sense the wells have been abandoned. A question about proper licenses was asked. There was additional discussion about cell phone tower leases. On a motion by Director Beverage, seconded by Vice President Collett, the Board of Directors voted 5-0 to adopt the Mitigated Negative Declaration for the Highland Reservoir Replacement Project and authorize staff to file the Notice of Determination for the project. 12. Consideration of support of a nomination to the Board of Directors of the California Special Districts Association. General Manager Payne presented the report stating staff is not familiar with the nominees. On a motion by Director Mills, seconded by Director Beverage, the Board of Directors voted 5-0 to take no action. DISCUSSION ITEMS 13. Oral report on the District's sewer maintenance fees. General Manager Payne gave updates on where the District stands. Finance Director Cyganik explained the spreadsheet represents all audited financial statements for 2002-2005. There was an operating loss every year. The adopted budget was compared to what was projected. The District's projection was a smaller loss than what was originally projected. Also shown are projections for rates at $4.50, $5.00, $5.50, $6.00, $6.50 and $7.00. There will be a sustained loss unless the District goes to $6.50 where it will be in the black. The current rate is $3.50 per month. On the last page of the spreadsheet there is a chart of charges by other agencies. Many are in the $40 range, but those agencies have a treatment plant. A number of agencies are in the $7.00-$7.75 per month range. A public hearing will be held at the next Board meeting. The sewer report will be presented as an action item. Assistant General Manager Vecchiarelli spoke about how much the District has depleted the sewer fund over the last couple of years. In his opinion, the District's sewer reserves are really low. General Counsel Kidman commented on the issue of notice needing to be provided. There was a court decision handed down on Tuesday regarding the Big Horn Water District in Moror measure to roll back their water been that water and sewer are They have been fighting a two-f water rates, and the other part c must be approved by the voters. go. That District has been fighting an initiative rates. The position of the water company has service charges not property related charges. art initiative, one part of which was to roll back f which was to state an increase in water rates Prop 218 deals with property related charges. -4- 2006-113 The court said water and sewer services are part of owning a property. Mr. Kidman stated Prop 218 is very convoluted. The question is how do you cover your costs if the voters roll back your rates? Prop 218 does say that you must provide written notice to your customers when you do increase your rates. The District needs to make sure charges do not exceed costs. General Manager Payne said the reason the District went with $6.00 was the big jump from $3.50, however, $7.00 seems reasonable when you consider what other agencies charge. Director Mills said the District needs to make a projection for the next five years. Director Beverage suggested sliding the increases instead of jumping to catch up with costs. General Manager Payne recommends November 1, 2006 as the date for the increase to become effective. REPORTS, INFORMATION ITEMS AND COMMENTS 14. a. President's Report The President had nothing to report. b. Directors Reports Director Mills reported there is a Sierra Watershed Tour coming up. Director Beverage received a call from Steve Nelson of Edison about a tour to Sierra Lakes. Director Beverage wants to know if anyone else is interested in going, so he can let Mr. Nelson know. Vice President Collett, and Director Summerfield, Mills and Beverage and General Manager Payne want to attend. President Armstrong asked about carpooling to the Ethics training taking place at IRWD on August 4. Arrangements were made for the Directors to meet at the Water District at 8:00 a.m. A District vehicle will be provided for transport for all. c. General Managers Report General Manager Payne distributed copies of the preliminary investment report for June 2006. A summons for a new lawsuit was received from John Taylor, purchaser of the Muranaka property, who has filed suit against the City and the District. There is a developer related leak on Lakeview just north of Yorba Linda Boulevard, which the District will repair and bill to the contractor. d. General Counsel's Report General Counsel Kidman had nothing further to report. General Counsel Kidman left the meeting at 11:17 a.m. -5- COMMITTEE REPORTS 15. a. Executive-Administrative-Organizational Committee (Armstrong /Collett) Alternate: Beverage 2006-114 1) Minutes of meeting held July 18. Action Items the Committee discussed included: Establishing a policy in accordance with SB 1087 concerning available water for affordable housing and a report on Proposition 84 water bond. Region 10 voted to oppose, and YLWD took no stand. Standing items discussed included: a report on the Board of Directors' and General Manager's expenses for the period 3/1/06 through 6/30/06. Barry Brokaw of Sacramento Advocates provided a report on legislative activities, and Sean Fitzgerald of Townsend Public Affairs provided an update, by phone, on legislative and grant activities. OC Advocacy Group provided an update, by phone on annexation activities. Staff is working with the cities of Yorba Linda and Placentia to establish dates for committee meetings. 2) Meeting scheduled for August 15, 4:00 p.m. b. Finance-Accounting Committee (Collett/Mills) Alternate: Summerfield 1) Minutes of meeting held July 10 were reported at the last Board meeting on July 13. Keith Khorey of Wells Capital Management called in to give a monthly status of investments at June 30, 2006. The committee reviewed the monthly investment report for May 2006. A report on Orange County Water District Basin Equity Assessments, Basin Production Percentages and Replenishment Assessments for Fiscal Year 2006-2007 was discussed as was a report on MWDOC's new rates and charges for FY 2006-2007 and a Fluoridation Treatment Capital Cost Estimate update. 2) Meeting scheduled for August 14, 4:00 p.m. c. Personnel-Risk Management Committee (Beverage/Summerfield) Alternate: Collett 1) Minutes of meeting held July 11 were presented orally at the Board meeting held July 13. Director Beverage said they discussed the MOU process, risk management, workers compensation and recruitments. 2) Meeting scheduled for August 8, 4:00 p.m. d. Planning-Engineering-Operations Committee (Summerfield/Mills) Alternate: Armstrong 1) Meeting scheduled August 3, 4:00 p.m. -6- 2006-115 e. Public Information Committee (Mills/Collett) Alternate: Summerfield 1) Meeting scheduled for August 7, 4:00 p.m. f. Building Ad Hoc Committee (Beverage/Summerfield) Alternate: Collett 1) Minutes of meeting held July 20. Director Beverage reported the Committee discussed the latest construction cost estimate and project schedule. Staff reported on the progress on various project elements including the off site storm drain, sewer improvements and requirements by the City of Placentia. Director Summerfield stated the street improvements and sewer are outside of costs. General Manager Payne stated the City of Placentia Planning Commission will hear this item on its meeting of August 8. 2) Meeting scheduled for August 17, 4:00 p.m. g. MWDOC Ad Hoc Committee (Armstrong/Beverage) Alternate: Mills 1) Meeting scheduled for August 22, 4:00 p.m. INTERGOVERNMENTAL MEETINGS 16. a. Yorba Linda City Council, July 18. Director Collett attended. There was nothing to report. General Manager Payne reported there is a conflict with the Executive- Administration-Organizational Committee and the City Council meeting for Director Collett. Director Summerfield said he is generally available to attend the City Council meeting as alternate when given a few days notice. b. MWDOC Board, July 19. No one attended. c. OCWD Board, July 19. No one attended. d. Yorba Linda Planning Commission, July 26. Director Mills attended. There are plans to cover the helicopter at the Nixon Library. There is conflict about the interpretation of the City's policy regarding the maintaining of horses in side yards. -7- 2006-116 BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after July 27, 2006. Agenda is available in the District office prior to meeting. Auaust Yorba Linda City Council, August 1, 6:30 p.m. Collett/ Alt. Summerfield MWDOC/MWD Joint Workshop, August 2, 8:30 a.m. Staff OCWD Board, August 2, 5:00 .m. Staff Planning-Engineering-Operations Committee, August 3, 4:00 p.m. Summerfield/Mills WACO, August 4, 7:30 a.m. Mills Public Information Committee, August 7, 4:00 p.m. Mills/Collett Personnel-Risk Management Committee, August 8, 4:00 .m. Bevera a/Summerfield Yorba Linda Planning Commission, August 9, 6:30 p.m. Mills//Alt. Summerfield Finance-Accounting Committee, August 14, 4:00 .m. Collett/Mills Executive-Admin-Or anizational Committee, August 15, 4:00 .m. Armstrong/Collett Yorba Linda City Council, August 16, 6:30 p.m. Collett/ Alt. Summerfield MWDOC Board, August 16, 8:30 a.m. Staff OCWD Board, August 16, 5:00 .m. Staff Building Ad Hoc Committee, August 17, 4:00 .m. Bevera a/Summerfield MWDOC Ad Hoc Committee meeting, August 22, 4:00 .m. Armstrong/Beverage Yorba Linda Planning Commission, August 23, 6:30 p.m. Mills/ Alt. Summerfield September WACO, September 1, 7:30 a.m. Mills Yorba Linda City Council, September 5, 6:30 .m. Collett/ Alt. Summerfield MWDOC/MWD Joint Workshop, September 6, 8:30 a.m. Staff OCWD Board, September 6, 5:00 .m. Staff Planning-Engineering-Operations Committee, Sept. 4, 4:00 p.m. (Labor Da Holiday) Summerfield/Mills Finance-Accounting Committee, September 11, 4:00 .m. Collett/Mills Personnel-Risk Management Committee, September 12, 4:00 .m. Bevera e/Summerfield Yorba Linda Planning Commission, September 13, 6:30 .m. Mills/IA/t. Summerfield Executive-Admin-Or anizational Committee, Sept. 19, 4:00 .m. Armstrong/Collett Yorba Linda City Council, September 19, 6:30 p.m. Collett/ Alt. Summerfie/d MWDOC Board, September 20, 8:30 a.m. Staff OCWD Board, September 20, 5:00 .m. Staff Building Ad Hoc Committee, September 21, 4:00 .m. Bevera a/Summerfield Yorba Linda Planning Commission, September 27, 6:30 p.m. Mills/ Alt. Summerfield CONFERENCES AND SEMINARS 17. 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 -8- 2006-117 ADJOURNMENT On a motion by Director Beverage, seconded Directors voted 5-0 at 11:29 a.m. to adjourn Directors scheduled for Thursday, August 10, Drive, Yorba Linda 92886. Michael A. Payne Secretary/General Man by Director Summerfield, the Board of to a regular meeting of the Board of 2006, at 8:30 a.m., at 4622 Plumosa -9- 2006-118