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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. 1 2012-099 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. 2 2012-100 ' 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 3 2012-101 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. 4 2012-102 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. 5 2012-103 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. 6 2012-104 ' 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) 7 2012-105 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 8