HomeMy WebLinkAbout2012-06-14 - Board of Directors Meeting Minutes 2012-098
' MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
June 14, 2012
1. CALL TO ORDER
The June 14, 2012 Regular Meeting of the Yorba Linda Water District Board of
Directors was called to order by President Hawkins at 6:00 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
Annie Alexander, Executive Secretary
ALSO PRESENT
Nancy Rikel, Councilmember, City of Yorba Linda
Art Kidman, Partner, Kidman Law LLP
Eddy Beltran, Senior Counsel, Kidman Law LLP
Richard Kreisler, Partner, Liebert Cassidy Whitmore (Arrived at 7:30 p.m.)
Daniel Mole, Chair, YLWD Citizens Advisory Committee
4. ADDITIONS/DELETIONS TO THE AGENDA
Mr. Vecchiarelli stated that a revised version of the agenda report for Item No.
9.1. had been distributed to the Board. Staff will provide an overview of the
revisions made to this report when the item is considered.
5. PUBLIC COMMENTS
None.
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6. COMMITTEE REPORTS '
6.1. Citizens Advisory Committee
(Beverage)
Minutes of the meeting held May 29, 2012 at 8:30 a.m. were provided in
the agenda packet. Mr. Mole provided a report regarding matters
discussed during the meeting including the Orange County Water Summit,
the proposed water rate increase and the District's public outreach efforts.
Mr. Mole commented that the Committee was struggling to identify
additional matters to evaluate. A few members have expressed an
interest in learning more about the Golden State Water Company, the
District's water distribution system, and reservoir levels during red flag
events. Director Melton extended an invitation for Committee members to
accompany him at future MWDOC Board meetings. Mr. Mole stated that
the Committee would like to learn more about the OCWD annexation and
then responded to questions from the Board regarding the Committee's
understanding of the proposed rate increase.
Next meeting is scheduled June 25, 2012 at 8:30 a.m.
Mr. Mole left the meeting at this time.
7. CONSENT CALENDAR '
Director Kiley made a motion, seconded by Director Collett, to approve the
Consent Calendar. Motion carried 5-0.
7.1. Minutes of the Board of Directors Regular Meeting Held May 24, 2012
Recommendation: That the Board of Directors approve the minutes as
presented.
7.2. Minutes of the Board of Directors Regular Meeting Held May 31, 2012
Recommendation: That the Board of Directors approve the minutes as
presented.
7.3. Payments of Bills, Refunds and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of$899,369.71.
7.4. Brand Name Requirement for Yorba Linda Blvd Pump Station
Recommendation: That the Board of Directors approve Brand Name '
Requirement for the Yorba Linda Blvd Pump Station Project for the items
listed on Exhibit A of the attached staff report.
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' 7.5. Unaudited Financial Statements for the Period Ending March 2012 and
March 2012 Debt Service Ratio
Recommendation: That the Board of Directors receive and file the
Unaudited Financial Statements for the Period Ending March 31, 2012.
8. ACTION CALENDAR
8.1. Renewal of Maintenance Contract with Marina Landscape
Mr. Cory explained that the current agreement with Marina included an
option to renew up to 3 times. This would be the last time it could be
renewed without staff having to seek new proposals. Staff made some
minor modifications to the Scope of Work including the addition of
maintenance for the Box Canyon Pump Station which resulted in a cost
increase of $1,142.78. Mr. Cory then responded to questions from the
Board regarding the process of going out to bid following renewal of a
contract for 4 years. Director Collett stated that the Planning-Engineering-
Operations Committee had recently reviewed this matter and
recommended that the Board renew the contract.
Director Beverage made a motion, seconded by Director Collett, to
authorize the General Manager to enter into the renewal option agreement
' as part of our Maintenance Contract with Marina Landscape. The new
term of the contract will be 12 months with service starting on July 1, 2012
and ending June 30, 2013, with a total estimated contract cost of
$50,828.80. Motion carried 5-0.
8.2. Appropriations Limit for Fiscal Year 2012/13
Mr. Parker explained that the District was required to adopt the
Appropriations Limit and factors used to calculate this number on an
annual basis in accordance with California Constitution. The Finance-
Accounting Committee recently reviewed this matter and supports staffs
recommendation. Mr. Parker then responded to questions from the Board
regarding factors included in the calculation.
Director Collett made a motion, seconded by Director Melton, to approve
Resolution No. 12-11 Adopting the Appropriations Limit for Fiscal Year
2012113. Motion carried 5-0 on a roll call vote.
8.3. Financial Reserves Policy for FY 2012/13
Mr. Parker explained that this matter was previously discussed by the
Board at the budget workshop in April. Two major changes in this year's
policy include revising the District's Operating Reserve target to equal the
' Government Finance Officers Association's recommendation and
adjusting the Maintenance Reserve target to $200,000. Staff also
attached a graph to the resolution to serve as a visual aid depicting the
reserve targets and projected funding levels. Mr. Parker further reported
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that the Finance-Accounting Committee recently considered this matter ,
and supports staff's recommendation.
Director Kiley made a motion, seconded by Director Melton, to approve
Resolution No. 12-12 Adopting the Financial Reserves Policy for Fiscal
Year 2012113. Motion carried 5-0 on a roll call vote.
9 DISCUSSION ITEMS
9.1. Proposed Budget for FY 2012/13
Mr. Parker explained that this was a draft of what would be presented to
the Board for consideration at the meeting scheduled June 28, 2012. Mr.
Parker then reviewed the changes made to the agenda report including
some minor revisions to the budget document. Mr. Vecchiarelli then
responded to questions from the Board regarding increased costs related
to sewer system maintenance. Mr. Vecchiarelli further stated that staffs
goal was to create a budget document that would be comprehensive
enough to receive recognition from the CSMFO and GFOA. Director
Beverage suggested that the clipart at the top of each page be removed.
Director Hawkins agreed. Mr. Parker clarified that the anticipated revenue
identified in the draft budget included the proposed water rate increase
and restructuring of the fixed charge. Both of these proposed increases
will be considered by the Board at a public hearing scheduled June 21, '
2012. Director Hawkins requested that the Board review the document
and contact staff regarding any questions or suggested revisions they
might have.
10. REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1. President's Report
None.
10.2. Directors' Report
Director Beverage wished those in attendance a happy Father's Day.
10.3. General Manager's Report
ISDOC Grand Jury Report Brainstorming Workshop —June 14, 2012
Mr. Vecchiarelli began his report by providing a brief overview of a panel
discussion held during the workshop. It was suggested that special
districts make an effort to reach out to the grand jury prior to the release of
these controversial reports. Representatives from LAFCO and CSDA as
well as a former juror participated on the panel. CSDA has issued a paper
regarding its concerns with the report. A second report from the grand '
jury is expected to be released today. Mr. Vecchiarelli then responded to
questions from the Board regarding the effectiveness of the workshop and
the length of time an individual may serve on the grand jury.
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10.4. General Counsel's Report
Mr. Kidman commented on the grand jury's previous recommendations for
special districts to place salary information on their websites and
commended the District for its comprehensive website. Mr. Kidman stated
that his office would be distributing a new report on the status of legislative
bills shortly and summarized the intent behind two of the bills related to
the Public Records Act and Brown Act. Mr. Kidman concluded his
remarks and noted the importance of some records related to the 1911
blanket easement that were recently located in the District's archives.
Mr. Vecchiarelli continued his report and stated that the District's
contractor was preparing to conduct night work on the Yorba Linda
Pipeline construction project from June 17-22, 2012. This is to limit the
impact on residents and businesses near Fairmont Boulevard and Yorba
Linda Boulevard.
10.5. Future Agenda Items and Staff Tasks
None.
11. COMMITTEE REPORTS CONTINUED
11.1. Executive-Administrative-Organizational Committee
' (Hawkins/Melton)
Next meeting is scheduled June 18, 2012 at 4:00 p.m.
11.2. Finance-Accounting Committee
(Kiley/Hawkins)
Minutes of the meeting held May 23, 2012 at 4:00 p.m. were provided in
the agenda packet.
Next meeting was rescheduled to June 26, 2012 at 4:00 p.m.
11.3. Personnel-Risk Management Committee
(Beverage/Collett)
Minutes of the meeting held June 12, 2012 at 4:00 p.m. will be provided at
the next regular Board meeting.
Next meeting is scheduled July 10, 2012 at 4:00 p.m.
11.4. Planning-Engineering-Operations Committee
(Collett/Kiley)
' Revised minutes of the meeting held May 3, 2012 at 4:00 p.m. were
provided in the agenda packet.
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Minutes of the meeting held June 7, 2012 at 8:00 a.m. were also provided
in the agenda packet.
Next meeting is scheduled July 5, 2012 at 4:00 p.m.
11.5. Public Affairs-Communications-Technology Committee
(Melton/Beverage)
Minutes of the meeting held June 11, 2012 at 4:00 p.m. will be provided at
the next regular Board meeting.
Next meeting is scheduled July 2, 2012 at 4:00 p.m.
11.6. YLWD-MWDOC-OCWD Joint Agency Committee
(Hawkins/Beverage)
Minutes of the meeting held May 22, 2012 at 4:00 p.m. were provided in
the agenda packet.
Next meeting is scheduled July 24, 2012 at 4:00 p.m.
12. INTERGOVERNMENTAL MEETINGS
12.1. YL City Council — June 5, 2012 (Hawkins) '
Director Hawkins attended and reported that there were a number of
public comments regarding the City's contract for police services made
during the meeting.
12.2. MWDOC/MWD Workshop — June 6, 2012 ( /Staff)
Neither a member of the Board or District staff was able to attend this
meeting.
Councilmember Rikel left the meeting at this time.
12.3. OCWD Board — June 6, 2012 (Kiley/Staff)
Director Kiley attended but did not have any District related business to
report.
12.4. YL Planning Commission —June 13, 2012 (Kiley)
Director Kiley attended but did not have any District related business to
report. The meeting scheduled June 27, 2012 has been cancelled.
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' 13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from June 15, 2012 — July 31, 2012
Mr. Vecchiarelli stated that the Board had previously discussed holding
the June 28, 2012 Board meeting in the evening in order to encourage
public involvement when the budget was considered. Unfortunately, this
change has not been reflected on the calendar. Following brief
discussion, the Board decided to hold the regular Board meeting on June
28, 2012 at 6:30 p.m. instead of 8:30 a.m. The Board made no other
changes to the activity calendar at this time.
14. CLOSED SESSION
The meeting was adjourned to Closed Session at 6:51 p.m. All Directors were
present. Also present were Messrs. Vecchiarelli, Kidman, Beltran and Mrs.
Knight.
14.1. 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)
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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 al (OC Superior Court —
Case No. 00486884)
Messrs. Kidman and Beltran left the Closed Session at 7:30 p.m. following
discussion of this matter.
Mr. Kreisler joined the Closed Session at this time.
14.2. Conference with Labor Negotiators
Pursuant to Section 54956.7 of the California Government Code
Agency Designated Representatives:
Ken Vecchiarelli
Gina Knight
Richard Kreisler
Employee Organization:
Yorba Linda Water District Employees Association
Mr. Vecchiarelli left the Closed Session at 8:00 p.m. following discussion of this '
matter.
14.3. Public Employee Performance Evaluation
Pursuant to Section 54957 of the California Government Code
Title: General Manager
The Board reconvened in Open Session at 8:44 p.m. President Hawkins announced
that no action was taken during any of the Closed Session's that was required to be
reported under the Brown Act.
15. ADJOURNMENT
15.1. The meeting was adjourned at 8:45 p.m. A special Board of Directors
meeting to conduct a public hearing regarding the proposed water rate
increase will be held Thursday, June 21, 2012 at 6:30 p.m. The next
regular meeting of the Board of Directors will be held June 28, 2012 at
6:30 p.m.
Keffineth R. Vecchiarelli
Board Secretary
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