HomeMy WebLinkAbout2012-04-26 - Board of Directors Meeting Minutes 2012-067
' MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
April 26, 2012
1. CALL TO ORDER
The April 26, 2012 Regular Meeting of the Yorba Linda Water District Board of
Directors was called to order by President Hawkins at 6:31 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
Director Hawkins led the pledge.
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Phil Hawkins, President Ken Vecchiarelli, General Manager
Gary T. Melton, Vice President Steve Conklin, Engineering Manager
Michael J. Beverage Lee Cory, Operations Manager
' Ric Collett Gina Knight, Human Resources Manager
Robert R. Kiley Stephen Parker, Finance Manager
Art Vega, Interim IT Manager
Cindy Botts, Management Analyst
Annie Alexander, Executive Secretary
ALSO PRESENT
Brett Barbre, Director, Municipal Water District of Orange County
Art Kidman, Partner, Kidman Law LLP
Eddy Beltran, Senior Counsel, Kidman Law LLP
Modesto Llanos, Member, YLWD Citizens Advisory Committee
4. ADDITIONS/DELETIONS TO THE AGENDA
None.
5. PUBLIC COMMENTS
Director Barbre addressed the Board and commented on a report soon to be
released from the Orange County Grand Jury regarding special districts, the
upcoming LAFCO election, and the current water supply situation.
6. CONSENT CALENDAR
Director Beverage made a motion, seconded by Director Collett, to approve the
' Consent Calendar. Motion carried 5-0. Director Collett abstained from voting on
Check No. 58947 on Item No. 6.4. as he has a financial interest with the vendor.
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6.1. Minutes of the Board of Directors Workshop Meeting Held April 11, 2012 '
Recommendation: That the Board of Directors approve the minutes as
presented.
6.2. Minutes of the Board of Directors Regular Meeting Held April 12, 2012
Recommendation: That the Board of Directors approve the minutes as
presented.
6.3. Minutes of the Board of Directors Special Meeting Held April 19, 2012
Recommendation: That the Board of Directors approve the minutes as
presented.
6.3. Payments of Bills, Refunds and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of$1,145,183.87.
6.5. Progress Payment No. 1 for Fairmont Reservoir Valve Replacement
Project
Recommendation: That the Board of Directors approve Progress ,
Payment No. 1 in the net amount of $189,261.00 to Pascal & Ludwig
Constructors for construction of Fairmont Reservoir Valve Replacement
Project, Job No. 201011.
6.6. Progress Payment No. 6 for Well No. 20 Well Head Project
Recommendation: That the Board of Directors approve Progress
Payment No. 6 in the net amount of $109,244.25 to Pascal & Ludwig
Constructors for construction of the Well No. 20 Well Head Equipping
Project, Job No. 200711.
6.7. Progress Payment No. 15 for the Highland Booster Pump Station Project
Recommendation: That the Board of Directors approve Progress
Payment No. 15 in the net amount of $197,135.36 to Pacific Hydrotech
Corporation for construction of the Highland Booster Pump Station
Project, Job No. 200814.
6.8. Change Order No. 2 for Well No. 20 Wellhead Equipping Project
Recommendation: That the Board of Directors approve Change Order '
No. 2 in the amount of $10,494.00 and 35 additional calendar days to
Pascal and Ludwig Constructors for construction of the Well No. 20 Well
Head Equipping Project, Job No. 200711.
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' 7. ACTION CALENDAR
7.1. Change Order No. 4 for Fairmont Reservoir Valve Replacement Project
Mr. Conklin explained that the coating of existing pipe spools and flanges
was not included in the original plans for this project as prepared by the
District. Staff obtained a quote for $9,060 from the contractor to perform
this additional task and determined that the amount and an 11 day time
extension was appropriate for the work required. Director Hawkins asked
if this issue had been reviewed by the Planning-Engineering-Operations
(PEO) Committee. Mr. Conklin explained that due to the urgency of this
project, this matter had been brought straight to the Board for
consideration.
Director Collett made a motion, seconded by Director Kiley, to approve
Change Order No. 4 in the amount of$9,060.00 and an 11 calendar-day
time extension to Pascal & Ludwig Constructors, Inc. for the Fairmont
Reservoir Valve Replacement Project, Job No. 2010-11. Motion carried
5-0.
7.2. Material Testing Services for Yorba Linda Blvd Pipeline & Booster Station
Projects, 2010 Waterline Replacement Project and On-Call Geotechnical
' Services
Mr. Conklin explained that staff had issued a Request for Proposal for
material testing services for three construction projects and future on-call
services in order to enhance efficiency and cost savings. Mr. Conklin and
Mr. Vecchiarelli responded to questions from the Board regarding the
reasons why this matter had not been reviewed by the PEO Committee
before being presented to the Board. Mr. Conklin explained that there
was a delay in the review process and due to time constraints, this issue
was brought directly to the Board for consideration. Director Beverage
suggested that staff consider notifying Committee chairs ahead of time
should this same kind of situation happen again in the future.
Director Collett made a motion, seconded by Director Kiley, to authorize
execution of a Professional Services Agreement with Hushmand
Associates, Inc. for a fee not to exceed $130,000, to provide material
testing services for the Yorba Linda Blvd Pipeline & Booster Station
Projects, 2010 Waterline Replacement Project and On-Call Geotechnical
Services. Motion carried 5-0.
7.3. Election of Regular and Alternate LAFCO Commissioners
Mr. Vecchiarelli explained that the Orange County Special District
' Selection Committee would be holding an election for the special district
representative seat on LAFCO. LAFCO has requested that the Board
designate one Director and an alternate to cast the Districts ballot for this
election. The Board may also choose to nominate a candidate for this
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seat. Director Hawkins stated that he may have a conflict of interest if he '
was designated to cast the District's vote as he currently serves as Chair
of the Orange County Special District Selection Committee. Brief
discussion regarding Directors Hawkins' concern followed. Director
Barbra addressed the Board and stated that he didn't think it would be a
conflict of interest for Director Hawkins to serve in both capacities.
Director Collett made a motion, seconded by Director Beverage, to
designate Director Hawkins as the District's primary voting representative
and Director Melton as the alternate voting representative in the Orange
County Special District Selection Committee election. Motion carried 5-0.
No Directors expressed an interest in making a nomination for a LAFCO
candidate at this time.
7.4. ACWA Health Benefits Authority Transfer to ACWA/JPIA
Mrs. Knight explained that to proceed with the transfer of ACWA HBA to
ACWA/JPIA, the Board would need to adopt a resolution consenting to
join the Employee Benefits Program of ACWA/JPIA and ratify the
termination of ACWA HBA's Joint Powers Agreement. Failure to return an
approved resolution by June 29, 2012 could result in loss of health
insurance coverage for District employees. '
Director Beverage made a motion, seconded by Director Collett, to adopt
Resolution No. 12-09, consenting to join the health benefits program of
ACWA/JPIA and ratifying the dissolution of the ACWA Health Benefits
Authority Joint Powers Agreement. Motion carried 5-0 on a roll call vote.
7.5. Board Communications Reimbursement Policy
Mr. Vecchiarelli explained that at the direction of the Executive-
Administrative-Organizational Committee, staff had drafted a resolution
and policy for the acquisition and reimbursement of communications
devices for the Directors to receive digital copies of agenda packets and
other documents. This would eliminate the need for staff to copy and
deliver paper agenda packets resulting in increased savings for the
District. The Board approved funds in the current budget to support this
program and while participation would be voluntary, staff would
discontinue the distribution of paper agenda packets beginning July 1,
2012. Mr. Vecchiarelli then responded to questions from the Board
regarding the discontinuation of producing paper agenda packets and
concerns related to the subpoenaing of information stored on electronic
devices.
Director Melton made a motion, seconded by Director Collett, to adopt and ,
implement Resolution No. 12-10 Setting Board Communications
Reimbursement Policy. Motion carried 3-2 with Directors Beverage and
Collett voting No on a roll call vote.
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7.6. Water Rate Study 2012
Mr. Parker explained that staff was requesting that the Board receive and
file the water rate study. This document will provide additional information
to District customers regarding the proposed water rate increase and
change to the monthly meter charge.
Director Collett made a motion, seconded by Director Beverage, to receive
and file the Water Rate Study 2012. Motion passed 5-0.
Brief discussion regarding comments provided by the Citizens Advisory
Committee and the possibility of offering some residential customers the
opportunity to downgrade to a smaller meter size followed. Mr.
Vecchiarelli distributed a handout containing information on the number
and type of customers with 1'/2" and 2" meters.
7.7. Notice of Proposed Water Rate Increase and Schedule of Public Hearing
Mr. Parker explained that staff was requesting that the Board authorize
staff to mail a notice of the proposed water rate increase to District
customers as well as schedule a public hearing in June to consider the
matter. Director Barbre addressed the Board and suggested that legal
counsel look into the possibility of providing this notice electronically to
' those customers who currently receive their billing statements in this
manner. Brief discussion regarding Directors Barbre's suggestion
followed and the Board requested that staff consider looking into this
notification option for a future notice.
Director Beverage made a motion, seconded by Director Collett, to
authorize staff to mail a Notice of Proposed Water Rate Increase to the
District's customers notifying them of proposed changes to their water rate
for the upcoming three fiscal years and schedule a Public Hearing on June
21, 2012 at 6:30 p.m. Motion passed 5-0.
8. REPORTS, INFORMATION ITEMS, AND COMMENTS
8.1. President's Report
None.
8.2. Directors' Reports
None.
8.3. General Manager's Report
■ SAWPA Commission Meeting —April 17, 2012
' Mr. Vecchiarelli reported that he attended this meeting along with a
few other local water district representatives. At the meeting, Mr.
Vecchiarelli submitted a letter to the SAWPA Chair requesting that
the Commission consider revising Memorandums 8618 and 8622 to
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include all water rate structures endorsed by the California Urban '
Water Conservation Council which would enable the District to
qualify for future OWOW funding. As a result, the OWOW Steering
Committee will be discussing this request at a special meeting in
May after which the memorandums will be presented to the
SAWPA Commission for consideration a second time. Staff plans
to attend these two meetings and will report the results back to the
Board. Mr. Vechiarelli further reported that he planned to attend a
General Manager Leadership Summit being hosted by CSDA this
July. The summit would provide him with 16 CEU credits which will
be counted towards the District's participation in CSDA's District's
of Distinction accreditation program. Mr. Vecchiarelli then
confirmed that the Directors planned to attend the District facilities
tour scheduled May 31, 2012. The Board suggested that staff
invite elected officials from the City of Yorba Linda and City of
Placentia to attend.
8.4. General Counsel's Report
Mr. Kidman reported that his office had just completed its first report on
bills for the 2012 legislative session, a copy of which will be provided to
staff shortly. Mr. Kidman then commented on the status of the 2009 water
bond package and pension reform. Mr. Kidman then stated that he would '
not be able to attend the next Board of Directors meeting as he would be
attending the ACWA conference in Monterey.
8.5. Future Agenda Items and Staff Tasks
None.
9. COMMITTEE REPORTS
9.1. Executive-Administrative-Organizational Committee
(Hawkins/Melton)
Minutes of the meeting held April 16, 2012 at 4:00 p.m. were provided in
the agenda packet.
Next meeting is scheduled May 9, 2012 at 4:00 p.m.
9.2. Finance-Accounting Committee
(Kiley/Hawkins)
Minutes of the meeting held April 23, 2012 at 4:00 p.m. will be provided at
the next regular Board meeting. ,
Next meeting is scheduled May 23, 2012 at 4:00 p.m.
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' 9.3. Personnel-Risk Management Committee
(Beverage/Collett)
Minutes of the meeting held April 10, 2012 at 4:00 p.m. were provided in
the agenda packet.
Next meeting is scheduled May 8, 2012 at 4:00 p.m.
9.4. Planning-Engineering-Operations Committee
(Collett/Kiley)
Minutes of the meeting held April 9, 2012 at 4:00 p.m. were provided in
the agenda packet.
Next meeting is scheduled May 3, 2012 at 4:00 p.m.
9.5. Public Affairs-Communications-Technology Committee
(Melton/Beverage)
Minutes of the meeting held April 9, 2012 at 4:00 p.m. were provided in
the agenda packet.
' Next meeting is scheduled May 7, 2012 at 4:00 p.m.
9.6. YLWD-MWDOC-OCWD Joint Agency Committee
(Hawkins/Beverage)
Minutes of the meeting held March 27, 2012 at 4:00 p.m. were provided in
the agenda packet.
Next meeting is scheduled May 22, 2012 at 4:00 p.m.
9.7. Citizens Advisory Committee
(Beverage)
Minutes of the meeting held April 23, 2012 at 8:30 a.m. will be provided at
the next regular Board meeting.
Next meeting is scheduled May 29, 2012 at 8:30 a.m.
10. INTERGOVERNMENTAL MEETINGS
' 10.1. WACO —April 13, 2012 (Hawkins/Kiley)
Directors Kiley attended and commented on a presentation regarding the
water supply conditions which was provided at the meeting.
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10.2. YL City Council —April 17, 2012 (Melton) '
Director Melton attended commented on a ground lease with the Yorba
Linda Friends Church which was discussed during the meeting.
10.3. MWDOC Board —April 18, 2012 (Melton/Staff)
Director Melton attended but did not have any District related business to
report.
10.4. OCWD Board —April 18, 2012 (Kiley/Staff)
Director Kiley attended and reported that the Replenishment Assessment
and Basin Production Percentage for FY 2012/13 had been approved at
the meeting.
11. BOARD OF DIRECTORS ACTIVITY CALENDAR
11.1. Meetings from April 27, 2012 — May 31, 2012
The Board reviewed the listed meetings and made no changes.
12. CLOSED SESSION
The meeting was adjourned to Closed Session at 9:25 p.m. All Directors were
present. Also present were Messrs. Vecchiarelli, Kidman and Beltrans, and Mrs.
Knight.
12.1. Conference with Legal Counsel — Pending Litigation '
Pursuant to Subdivision (a) of Section 54956.9 of the California
Government Code
Name of Case: Itani, at al vs. YLWD (OC Superior Court — Case No.
00124906)
Name of Case: Johnson, at al vs. YLWD, at 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, at 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, at 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)
Name of Case: ACWA/JPIA, et al vs. Insurance Company of the
State of Pennsylvania, et at (OC Superior Court —
Case No. 00486884)
12.2. Conference with Legal Counsel —Anticipated Litigation
Pursuant to Subdivision (b) of Section 54956.9 of the California
Government Code
Number of Potential Cases: One (Fair Political Practices
Commission Letter Dated July 15, 2011)
The Board reconvened in Open Session at 7:47 p.m. President Hawkins announced
that no action was taken during either Closed Session that was required to be reported
under the Brown Act.
13. ADJOURNMENT
' 13.1. The meeting was adjourned at 7:48 p.m. The next regular meeting of the
Board of Directors will be held May 10, 2012 at 8:30 a.m.
Kenneth R. Vecchiarelli
Board Secretary
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