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HomeMy WebLinkAbout2006-11-21 - Board of Directors Meeting MinutesMINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING November 21, 2006 2006-170 The November 21, 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 Michael J. Beverage William R. Mills John W. Summerfield STAFF PRESENT Michael A. Payne, General Manager Arthur G. Kidman, General Counsel Kenneth R. Vecchiarelli, Asst. G.M. Lee Cory, Operations Manager Diane Cyganik, Finance Director Amelia Cloonan, Exec Secretary DIRECTORS ABSENT AT ROLL CALL Ric Collett, Vice President INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Keith Khorey, Wells Capital Management Tom Smet, Shapell Industries Inc. SPECIAL RECOGNITION President Paul R. Armstrong introduced Lee Cory, Operations Manager, and recognized him for completing the ACWA/JPIA Supervisor Basics Specialty Program - September 2006. CONSENT CALENDAR (Items 1 through 9) On a motion by Director Mills, seconded by Director Beverage, the Board of Directors voted 4-0 to approve the Consent Calendar. Minutes of the Regular Board of Directors meeting held October 26, 2006. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify disbursements approved by the General Manager on November 13 in the amount of $647,616.75. 3. Minutes of the Regular Board of Directors meeting November 9, 2006. Recommendation: Approve the minutes as presented. 2006. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $1,776,122.03. 2006-171 5. Quitclaim Deed to BBH Yorba Linda LLC located at the southwest corner of Lakeview Avenue and Yorba Linda Boulevard. Recommendation: Authorize the President and Secretary to execute a Quitclaim Deed to BBH Yorba Linda LLC abandoning a 10 feet long by 15 feet wide portion of an existing District easement recorded as Instrument No. 89-633566 of Official Records of Orange County, within Parcel 1 of Parcel Map No. 88-415. 6. Terms and Conditions for Water and Sewer Service with Etco Development, Tract 16445 located at the northeast corner of Richfield Road and Orchard Drive. Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Etco Development for Tract No. 16445, Job No. 200625. 7. Progress Payment for Construction of the Lakeview Booster Pump Station. Recommendation: That the Board of Directors ratify Progress Payment No. 6 in the net amount of $145,213.00 to Schuler Engineering Corporation for construction of the Lakeview Booster Station, Job No. 200505. 8. Progress Payment for Cast Iron Replacement and Sewer Improvement Projects. Recommendation: That the Board of Directors approve Progress Payment No. 3 in the net amount of $398,880.00 to Vido Artukovich and Son Inc./Vidmar Inc., a Joint Venture for construction of the combined Cast Iron Replacement and Sewer Improvement Projects, Job Nos. 200407, 200515, 200516, 200603 and 200604. 9. Damage claim filed by legal counsel Paula E. Meyer & Associates, APC on behalf of Jing-Chan (Robert) Yang. Recommendation: That the Board of Directors reject and refer the claim to ACWA/JPIA. In order to accommodate Mr. Khorey's schedule, Item No. 15 was moved to this point in the Board meeting. DISCUSSION ITEMS 15. Presentation of Quarterly Investment Report by Keith Khorey, Wells Capital Management. Mr. Khorey gave an overview of the report presented in the agenda including the funds in the portfolio, liquidation, the CPI and PPI and the makeup of the District's investments. There was a question about the District's reserves, which the District's auditors would like to see increased. Keith Khorey and Diane Cyganik left the meeting at 9:02 a.m. The Board next considered the Action Calendar. -2- 2206-172 ACTION CALENDAR Director Beverage recussed himself from discussion of Item 12 due to a financial interest. He left the meeting at 9:02 a.m. 12. Terms and Conditions for Water and Sewer Service with Upper K-Shapell for Phase 1 of Tract No. 16987. Assistant General Manager Vecchiarelli presented - the report. He explained the project, spoke about the lots involved and the elevation ranges. Tom Smet of Shapell attended the meeting. There was a question about the paper trail of pressure regulators, which are required for all homes with pressure over 80 psi. General Counsel Kidman asked why the District should disclaim liability in an area where it has no liability. This is not a requirement of the District but a requirement of the City. General Manager Payne asked if the statement should be deleted from the terms and conditions. General Counsel Kidman stated it is a term and condition and should remain as such. Diane Cyganik reentered the meeting at 9:11 a.m. On a motion by Director Mills, seconded by Director Summerfield, the Board of Directors voted 3-0-1, with Director Beverage not voting, to approve Terms and Conditions for Water and Sewer Service with Upper K-Shapell for Phase 1 of Tract No. 16987, Job No. 200627. Director Beverage reentered the meeting at 9:12 a.m. 13. Lakeview Reservoir Storm Drainage Structures - Change Order No. 2. Assistant General Manager Vecchiarelli presented the report and explained the project. There was discussion about the retaining wall. On a motion by Director Beverage, seconded by Director Summerfield, the Board of Directors voted 4-0 to approve Change Order No. 2 in the amount of $53,217 to Paulus Engineering, Inc. Construction Services Agreement for the Lakeview Reservoir and Booster Pump Station Storm Drainage structures, Job No. 200505. 14. Consider Financial Statements for the first month of fiscal year 2006-2007 for the period ending July 31, 2006. Finance Director Cyganik presented the report and gave a brief overview of the numbers contained therein. On a motion by Director Beverage, seconded by Director Mills, the Board of Directors voted 4-0 to receive and file the financial statements for the first month of fiscal year 2006-2007 ending July 31, 2006. -3- 2006-173 The Board of Directors went into Closed Session at 9:35 a.m. All Directors were present. Also present were General Manager Payne, Assistant General Manager Vecchiarelli and General Counsel Kidman. ADJOURN TO CLOSED SESSION 10. 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)) John Taylor v. City of Yorba Linda and Yorba Linda Water District, Superior Court Case No. 060007457. 11. 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)) Barbara J. Taylor, William D. Taylor, Dolores R. Miller and Corinne W. Taylor vs. City of Yorba Linda and Yorba Linda Water District. Superior Court Case No. 060003802. RECONVENE IN OPEN SESSION The Board of Directors reconvened in Open Session at 9:38 a.m. Diane Cyganik and Amelia Cloonan rejoined the meeting. CLOSED SESSION REPORT There was no Closed Session Report. REPORTS, INFORMATION ITEMS AND COMMENTS 16. a. President's Report There was a discussion of the article that appeared in the Yorba Linda Star regarding the PYLUSD. b. Directors Reports Director Mills mentioned the letter received from Phil Anthony of the Orange County Water District. There was a discussion about the steps required to bring this item to the Board. It was decided that a Board meeting would be held on December 21 at 8:00 a.m. in the EOC Room at the Richfield Plant, and this item would be agendized for that meeting. c. General Managers Report General Manager Payne advised the Board that a series of water quality issues would be aired on channel 5. The District received the tapes of the Huell Howser water series, and anyone interested in viewing the tapes should contact Mike Robinson. Celeste Cantou is the new General Manager of SAWPA. Diane Cyganik left the meeting at 10:11 a.m. -4- 2006-174 d. General Counsel's Report 1) Final Report on 2006 Legislative Bills General Counsel Kidman recapped the report: eminent domain, water resources/conservation, ERAF (SB 1317), revenue tax collection procedures, AB573 Item 0, Senator Kuehl's bill. COMMITTEE REPORTS 17. a. Executive-Administrative-Organizational Committee (Armstrong /Collett) Alternate: Beverage 1) Minutes of meeting held November 20 will appear in the Board agenda for the meeting of December 12. President Armstrong reported Barry Brokaw of Sacramento Advocates was contacted by phone, as was Sean Fitzgerald of Townsend Public Affairs and Debbie Trabattoni of OC Advocacy Group. New payment options for customers and the city ad hoc committee meetings were not discussed and continued to the next meeting. 2) Meeting scheduled for December 19, 4:00 p.m. The MWDOC ad hoc committee meeting scheduled for December 19 will have to be changed. General Manager Payne will call Kevin Hunt to arrange a new date and time. Mike Robinson joined the meeting at 10:37 a.m. b. Finance-Accounting Committee (Collett/Mills) Alternate: Summerfield 1) Minutes of meeting held November 13. Director Summerfield reported. Paul Kaymark of Charles Z. Fedak & Company presented the draft of the financial statements. Some changes were suggested by the committee members. Monthly Financial Statements for the first month of fiscal 2006/2007 ending July 31, 2006 were presented. The committee members reviewed the billboard for the Board meeting not held November 9, 2006. The billboard was approved for payment by the General Manager and will be on the agenda for ratification at the Board meeting of November 21. The monthly investment report was presented. Staff gave an update on the process to increase water and sewer rates. 2) The meeting scheduled for December 11 was rescheduled to December 4, 4:00 p.m. (8:30 a.m.) -5- 2006-175 c. Personnel-Risk Management Committee (Beverage/Summerfield) Alternate: Collett 1) Minutes of meeting held November 14. The committee discussed the claim filed on behalf of Jing-Chan (Robert) Yang and will recommend rejection and referral to ACWA/JPIA by the Board of Directors. Temporary office space, current recruitments, performance appraisal training for District management and health benefit renewals. 2) Meeting rescheduled to December 5, 4:00 p.m. d. Planning-Engineering-Operations Committee (Summerfield/Mills) Alternate: Armstrong 1) Minutes of meeting held November 2. President Armstrong stated the main issue of discussion was the Grandview Sewer Extension Project. The committee also discussed a quitclaim to a portion of easement to BBH Yorba Linda, Terms and Conditions for water and sewer service with Etco Development for Tract No. 16445, Declaration of Restrictive Covenants for private pressure pumped systems, preannexation agreement with PYLUSD, Fairmont Reservoir inspection, status report on meter replacement program, status report on monthly water production, purchased import and in-lieu, status report on capital improvement projects in progress. 2) Meeting scheduled for December 7, 4:00 p.m. e. Public Information Committee (Mills/Collett) Alternate: Summen`ield 1) Meeting scheduled for December 11, 4:00 p.m. f. Building Ad Hoc Committee (Beverage/Summerfield) Alternate: Collett 1) Minutes of meeting held October 30. 2) Minutes of meeting held November 16. Director Beverage reported key milestones were discussed and that the Committee approved staff to solicit proposals from a list of prequalified bidders. The committee also discussed ground breaking, storm drain design and the Mira Loma situation. Discussions have been held between the City of Placentia's City Manager Bob Dominguez and Mike Payne. -6- g. MWDOC Ad Hoc Committee (Armstrong/Beverage) Alternate: Mills 1) Minutes of meeting held October 31. 2006-176 Discussion included Met's conservation rebate program, implications for Orange County of the new Met Chairman, MWDOC representative to Met's Board, MWDOC LAFCO Municipal Services Review and Member Agency Ad Hoc Committee status, MWDOC capacity charge allocations for calendar year 2007 and possible changes to Met's Local Resources Program. 2) Meeting to be scheduled. INTERGOVERNMENTAL MEETINGS 18. a. State of the City Address, October 26. President Armstrong and Director Mills attended and reported on the event. Vince Campion received the award for Citizen of the year. b. MWDOC/MWD Joint Workshop, November 1. No one attended. c. OCWD Board, November 1. No one attended. d. WACO, November 3. No one attended. e. Yorba Linda City Council, November 7. The item was continued since Director Collett was absent. MWDOC Services Review Discussions with Member Agency Managers, November 13. General Manager Payne attended and reported on the meeting. There is dissension between south county agencies and MWDOC with respect to representation on the board. Changes to the structure, core issues and payment of services are being discussed. g. Keeping California Golden: The Role of the Resources Agency in Addressing Critical Water and Resources Issues, November 14. General Manager Payne attended and reported on the meeting. An infrastructure report card was presented to the Board members. A list of tours was also passed out to Board members. h. Yorba Linda Planning Commission, November 15. Director Summerfield attended. Six lots of the Shapell property and two cell phone towers were discussed. -7- 2006-177 i. MWDOC Board November 15. General Manager Payne reported on their proposed rates, their audit by Moreland & Associates and the MSR were discussed. j. OCWD Board, November 15. General Manager Payne reported the audit prepared by Diehl Evans and continuing staff negotiations were discussed. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after November 21, 2006. Agenda is available in the District office prior to meeting. November Yorba Linda City Council, Nov 21, 6:30 .m. Summerfield Yorba Linda Planning Commission, Nov 29 Cancelled Mills/ Alt. Summerfield December WACO, Dec 1, 7:30 a.m. Mills Public Information Committee, Dec 4, 4:00 .m. Mills/Collett Finance-Accounting Committee, Dec 4, 8:30 a.m. Collett/Mills Personnel-Risk Management Committee, Dec 5, 8:30 a.m. Bevera a/Summerfield Yorba Linda City Council, Dec 5, 6:30 .m. MWDOC/MWD Joint Workshop, Dec 6, 8:30 a.m. Staff OCWD Board, Dec 6, 5:00 .m. Staff Plan nin -En ineerin -Operations Committee, Dec 7, 4:00 p.m. Summerfield/Mills Public Information Committee, Dec 11, 4:00 .m. Mills/Collett Board of Directors Meeting, Dec 12, 8:30 a.m. Yorba Linda Planning Commission, Dec 13, 6:30 .m. Mills/Alt. Summerfield Executive-Admin-Or anizational Committee, Dec 19, 4:00 p.m. Armstrong/Collett Yorba Linda City Council, Dec 19, 6:30 p.m. Summerfield MWDOC Board, Dec 20, 8:30 a.m. Staff OCWD Board, Dec 20, 5:00 .m. Staff Board of Directors Meeting, Dec 21, 8:00 a.m., Richfield Plant Building Ad Hoc Committee, Dec 21, 4:00 .m. Bevera a/Summerfield Yorba Linda Planning Commission, Dec 27 Cancelled Mills/ Alt. Summerfield 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. Association of California Water Agencies (ACWA) 2006 Fall Conference, December 6, 7, 8, Anaheim, CA. Attendees: Directors Mills and Collett and General Manager Payne. -8- 2006-178 b. Colorado River Water Users Association (CRWUA) 2006 Annual Conference, December 13-15, Las Vegas, NV. President Armstrong will attend. c. Independent Special District's of Orange County (ISDOC) Quarterly Meeting & Executive Committee Election 2007-2009, and "What the November Election Results Mean for California's Future, speaker the Hon. Jim Brulte, November 30, 2006, 11:30 a.m. to 1:00 p.m. Orange County Sanitation District. Director Mills will attend. On a motion by Director Mills, seconded by Director Summerfield, the Board of Directors voted 4-0 to approve attendance by Board and Staff as noted. After the agenda was prepared and posted, and item arose on which action must be taken before the next Board meeting. On a motion by President Armstrong, seconded by Director Beverage, the Board of Directors voted 4-0 to add an item to the agenda regarding negotiations with the Placentia Yorba Linda Unified School District due to time constraints. Discussion was held regarding actions and responses to be taken in light of the newspaper articles that recently appeared in the Orange County Register and the Yorba Linda Star. Assistant Administrator Robinson recommended a response stating our processes and what the District does to protect its customers. The issue of storage was brought up as was the change in the property use and the differing opinions of the engineering firms. ADJOURNMENT On a motion by Director Mills, seconded by Director Summerfield, the Board of Directors voted 4-0 at 12:09 p.m. to adjourn to a regular meeting of the Board of Directors scheduled for Tuesday, December 12, 2006, at 8:30 a.m., at 4622 Plumosa Drive, Yorba Linda 92886. Michael A. Payne Secretary -9- 2006-179