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HomeMy WebLinkAbout2012-08-23 - Board of Directors Meeting Minutes 2012-151 ' MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, August 23, 2012, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The August 23, 2012 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Hawkins at 8:33 a.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 President Hawkins led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Phil Hawkins, President Steve Conklin, Acting General Manager Gary T. Melton, Vice President Lee Cory, Operations Manager ' Michael J. Beverage Gina Knight, HR/Risk Manager Robert Kiley Stephen Parker, Finance Manager Annie Alexander, Executive Secretary DIRECTORS ABSENT Ric Collett ALSO PRESENT Brett Barbre, Director, Municipal Water District of Orange County Nancy Rikel, Councilmember, City of Yorba Linda Art Kidman, Partner, Kidman Law LLP Eddy Beltran, Senior Counsel, Kidman Law LLP Kurt Yeager, Bond Counsel, Stradling Yocca Carlson & Rauth Tom DeMars, Managing Principal, Fieldman Rolapp & Associates Joshua Lentz, Assistant Vice President, Fieldman Rolapp & Associates 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. PUBLIC COMMENTS None. 1 2012-152 6. CONSENT CALENDAR ' Director Beverage made a motion, seconded by Director Kiley, to approve the Consent Calendar. Motion carried 4-0-1 with Director Collett being absent. 6.1. Minutes of the Board of Directors Meeting August 8, 2012 Recommendation: That the Board of Directors approve the minutes as presented. 6.2. Minutes of the Board of Directors Regular Meeting Held August 9, 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$1,598,077.26. 6.4. ACWA/JPIA Workers' Compensation Program Renewal for FY 2012/13 Recommendation: That the Board of Directors approve the ACWA/JPIA Workers' Compensation Program renewal and estimated deposit premium ' of$104,393.56 for July 1, 2012 through June 30, 2013. 6.5. ACWA/JPIA General Liability Insurance Deposit Premium for the October 1, 2012 to September 30, 2013 Policy Year and Retrospective Allocation Point Recommendation: That the Board of Directors approve the ACWA/JPIA General Liability Insurance deposit premium for the policy year October 1, 2012 through September 30, 2013 in the amount of $215,272 and continue with the Retrospective Allocation Point of$25,000. 6.6. Internet Services Upgrade Recommendation: That the Board of Directors authorize staff to upgrade intemet services from Business Class Cable Internet to Dedicated /ntemet Access with Time Wamer Cable for a monthly cost of$999.00 plus taxes and fees. 2 2012-153 ' 7. ACTION CALENDAR 7.1. Response to OC Grand Jury Report: "Transparency Breaking Up Compensation Fog — But Why Hide Pension Costs?" Mr. Conklin explained that the OC Grand Jury had released a report regarding its opinion of the transparency of pension costs on local government websites. The District is required to respond to the findings in this report by September 12, 2012. The draft response being presented to the Board for consideration was previously reviewed by the Executive- Administrative-Organizational Committee with no revisions. Mr. Conklin then asked if the Board had any comments or suggestions. The Board did not have any revisions. Director Beverage made a motion, seconded by Director Melton, to approve the response to the Orange County Grand Jury's Report on transparency regarding pension costs. Motion carried 4-0-1 with Director Collett being absent. 7.2. Amending Employee Compensation Letters Mrs. Knight explained that the Board had previously approved compensation letters and pay plans for the Management and Supervisory/Confidential employees groups in April 2012. While ' discussing the implementation of the new compensation letters, staff discovered that one provision dealing with a new deferred compensation plan needed further clarification as it would pose an administrative challenge for the person tracking this benefit. Staff is suggesting that Section XXI of both letters be revised to reflect that the District will match employee's contributions to the plan, dollar for dollar not to exceed 2% of an employee's bi-weekly salary. The Personnel-Risk Management Committee has reviewed this matter and supports staffs recommendation. Director Beverage made a motion, seconded by Director Melton, to adopt Resolution No. 12-17 Amending Resolution Nos. 12-07 and 12-08 to Clarify the Method of District Contributions to Employee Deferred Compensation Plans. Motion carried 4-0-1 on a roll call vote with Director Collett being absent. 7.3. Authorizing Line of Credit Mr. Parker explained that this matter was first presented to the Board at a workshop meeting in April 2012. On May 10, 2012 the Board voted to utilize Mr. Kurt Yeager from Stradling Yocca Carlson & Rauth as Bond Counsel to pursue establishing a line of credit. Since that time, Mr. Yeager has been working with staff and bond counsel from Wells Fargo ' regarding this matter. At this point, the languages of the note and credit agreement are substantially complete and in order to move forward staff is requesting that the Board authorize the Acting General Manager to complete the transaction with Wells Fargo. The terms of the line of credit have not changed since they were first reported and will be assessed an 3 2012-154 interest rate of One-Month LIBOR plus 90 basis points that would equate ' to 1.14% borrowing with a 3 year term. If the District were not to utilize the line of credit, an unused annual commitment fee of 35 basis points (or $24,500) would be charged. The line of credit would be subordinate to the District's 2008 COP'S and 2012 Revenue Refunding Bonds. This matter was presented to the Finance-Accounting Committee excluding the agreements as they were just made available in the last few weeks. Director Kiley made a motion, seconded by Director Melton, to adopt Resolution No. 12-18 Authorizing a Line of Credit in an Amount Up To $7,000,000 and Making Certain Other Findings in Connection Therewith, and Approving Execution and Delivery of Certain Documents in Connection Therewith, and Authorizing the General Manager to Carry Out Such Agreement. Motion carried 4-0-1 on a roll call vote with Director Collett being absent. 7.4. Revenue Refunding Bonds, Series 2012A Mr. Parker explained that the Board agreed to move forward with advance refunding of the 2003 COP's back in April 2012. Since that time, staff has been working with Messrs. Tom DeMars and Joshua Lentz, financial advisors for Fieldman Rollap & Associates, regarding this matter. The terms of the advance refunding have also improved. Staff originally ' expected the District to realize an annual savings of approximately $25,000 and based on current market conditions, this could be as much as $45,000. This amount could change between now and when the bonds are sold, though it should not be significant. As the bond documents were numerous and quite lengthy, staff posted them on the District's website instead of providing them in the Director's agenda packets. Director Beverage made a motion, seconded by Director Kiley, to adopt Resolution No. 12-19 Authorizing the Issuance of Not to Exceed $10,000,000 Refunding Revenue Bonds, Series 2012A, and Approving the Execution and Delivery of Certain Documents in Connection Therewith and Certain Other Matters. Motion carried 4-0-1 on a roll call vote with Director Collett being absent. Messrs. Yeager, DeMars and Lentz left the meeting at this time. 8. REPORTS, INFORMATION ITEMS, AND COMMENTS 8.1. President's Report None. 8.2. Directors' Report , Director Kiley reported that he was attending the UWI conference in San Diego. Director Kiley noted that the topics presented during the first day of the conference included the Bay-Delta, the Delta Plan and issues related to the Colorado River. 4 2012-155 ' Director Beverage reported that he was unopposed for re-election and would be serving on the Board for another 4 years. 8.3. Acting General Manager's Report Mr. Conklin reported that the staff luncheon and horseshoe tournament held earlier that month had been a success. Ms. Joann Gitmed and Mr. Jeff McDonald won the tournament. As Ms. Gitmed is now working for another agency, Mr. Nick Isbell and Mr. McDonald will be representing the District at the annual OCWA barbecue and horseshoe tournament in the fall. Mr. Conklin further reported that Mr. Anthony Manzano would be attending the public information meeting being held later that evening at the Travis Ranch Elementary School regarding the proposed Esperanza Hills housing development. Director Hawkins stated that he also planned to attend this meeting. Mr. Conklin added that the pipeline construction project on Yorba Linda Boulevard continues to move along very well. Construction of all of the main line on Yorba Linda Boulevard is now complete. The contractor is now paving and potholing and will now begin the transverse crossing into the Gun Club Road site. The contractor's schedule indicates that they expect to complete this work by the end of next week. All of the major construction should be finished before Labor Day. Staff is very pleased with the progress made on this project. Mr. ' Conklin then responded to questions from the Board regarding lane openings, traffic control and final paving in the construction area. Mr. Conklin concluded his comments and advised the Board that he would be out of the office September 10-17, 2012. Mrs. Knight will provide staff oversight during Mr. Conklin's absence as well as lead the Board meeting on September 13, 2012. 8.4. General Counsel's Report Mr. Kidman stated that following his comments, he was going to ask Mr. Beltran to provide the Board with a report on a bill that had recently surfaced. Mr. Kidman briefly commented on his long standing working relationship with Mr. Yeager. Mr. Beltran then reported on Governor Brown's efforts regarding CEQA reform. 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 August 22, 2012 at 3:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled September 21, at 12:00 p.m. 5 2012-156 9.2. Finance-Accounting Committee , (Kiley/Hawkins) Next meeting is scheduled August 27, 2012 at 4:00 p.m. 9.3. Personnel-Risk Management Committee (Beverage/Collett) Minutes of the meeting held August 7, 2012 at 4:00 p.m. were provided in the agenda packet. Next meeting is scheduled September 6, 2012 at 10:00 a.m. 9.4. Planning-Engineering-Operations Committee (Collett/Kiley) Minutes of the meeting held August 2, 2012 at 3:00 p.m. were provided in the agenda packet. Next meeting is scheduled September 6, 2012 at 3:00 p.m. 9.5. Public Affairs-Communications-Technology Committee (Melton/Beverage) ' Minutes of the meeting held August 6, 2012 at 4:00 p.m. were provided in the agenda packet. Next meeting is scheduled September 4, 2012 at 4:00 p.m. 9.6. YLWD-MWDOC-OCWD Joint Agency Committee (Hawkins/Beverage) Next meeting is scheduled September 25, 2012 at 4:00 p.m. 9.7. Citizens Advisory Committee (Beverage) Next meeting is scheduled August 27, 2012 at 8:30 a.m. 10. INTERGOVERNMENTAL MEETINGS 10.1. MWDOC Board —August 15, 2012 (Staff) Staff was unable to attend this meeting. 10.2. OCWD Board —August 15, 2012 (Staff) , Staff was unable to attend this meeting. 6 2012-157 ' 10.3. YL Planning Commission —August 15, 2012 (Kiley) Director Kiley attended and reported that the City had been awarded a grant from CalTrans in the amount of $240,000 for a land use and transportation study in the Savi Ranch area as well as another grant in the amount of $250,000 for disaster issues. Director Kiley stated that he provided the Commission with a copy of the letter from OCFA regarding the proposed Cielo Vista housing development project. 10.4. YL City Council —August 21, 2012 (Melton) Director Melton attended and noted that there was a large number of people present as the Council was considering an extension to a ground lease agreement between the City and the YL Friends Church. The church was given an additional 120 days to secure funding for construction of a high school on the property. Director Melton further reported that he responded to several questions from other attendees regarding the Cielo Vista project and OCFA's requirements as well as the District's pump station project on Gun Club Road. Director Melton then asked Councilmember Rikel to report on the Council's decision regarding the proposed rezoning of property owned by the PYLUSD. Councilmember Rikel stated that the Council decided not to consider rezoning the property until the School District was ready to propose a new development on the site. Councilmember Rikel further added that the Council decided to construct the new library facility outside of the Town Center Civic/Cultural Arts and Public Facilities District. Several other sites for the new facility are being considered including the strawberry field behind Stater Brothers. 11. BOARD OF DIRECTORS ACTIVITY CALENDAR 11.1. Meetings from August 24, 2012 — September 30, 2012 The Board reviewed the activity calendar and made no changes. 12. CLOSED SESSION The meeting was adjourned to Closed Session at 9:04 a.m. Following a brief recess, the Closed Session began at 9:10 a.m. All Directors were present. Also present were Messrs. Conklin, Kidman, Beltran 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: ACWA/JPIA, et al vs. Insurance Company of the State of Pennsylvania, et al (OC Superior Court — Case No. 00486884) 7 2012-158 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 Existing Facts and Circumstances under Section 54956.9(b)(3)(B): Dispute with Orange County Transportation Authority over payment of cost to relocate District water pipelines to make way for construction of Lakeview Avenue overcrossing of ATSF rail tracks and Orangethorpe Avenue. The Board reconvened in Open Session at 9:30 a.m. President Hawkins announced that no action was taken during Closed Session that was required to be reported under the Brown Act. 13. ADJOURNMENT 13.1. The meeting was adjourned at 9:31 a.m. An additional Board of Directors meeting to conduct a Closed Session has been scheduled for Wednesday, September 5, 2012 at 9:00 a.m. The next regular meeting of the Board of Directors will be held Thursday, September 13, 2012 at 8:30 a.m. ' L Annie Alexander Assistant Board Secretary 8