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HomeMy WebLinkAbout2014-03-13 - Board of Directors Meeting Minutes 2014-035 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, March 13, 2014, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The March 13, 2014 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Kiley at 8:30 a.m. The meeting was held in the Board Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. PLEDGE OF ALLEGIANCE President Kiley led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Robert R. Kiley, President Steve Conklin, Acting General Manager Ric Collett, Vice President John DeCriscio, Operations Manager Michael J. Beverage Gina Knight, Human Resources/Risk Manager Phil Hawkins Delia Lugo, Finance Manager Gary T. Melton Art Vega, Acting IT Manager Annie Alexander, Executive Secretary Charmaine Holland, Customer Service Rep II Kelly McCann, Senior Accountant Damon Micalizzi, Public Information Officer Marcus Millen, Records Management Specialist ALSO PRESENT Gene Hernandez, Mayor Pro Tern, City of Yorba Linda Art Kidman, Partner, Kidman Law LLP Eddy Beltran, Senior Counsel, Kidman Law LLP Emily Garten and Family 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. PUBLIC COMMENTS None. 1 2014-036 6. SPECIAL RECOGNITION 6.1. Presentation of Proclamation to Winner of District's Bottled Water Label Contest President Kiley presented a proclamation to Emily Garten, a 3rd grader in Mr. Laporte's class at Rose Drive Elementary School, in recognition of her accomplishment. Mr. Micalizzi explained the purpose of the contest and the District's bottled water program. The Board congratulated Emily and her family. 6.2. Introduction of Recently Hired Employees • Charmaine Holland, Customer Service Representative II Mrs. Lugo introduced Ms. Holland and provided the Board with an overview of her background and work experience. The Board welcomed Ms. Holland to the District. • Marcus Millen, Records Management Specialist Mr. Conklin introduced Mr. Millen and provided the Board with an overview of his background and work experience. The Board welcomed Mr. Millen to the District. • Kelly McCann, Senior Accountant Mrs. Lugo introduced Mr. McCann and provided the Board with an overview of his background and work experience. The Board welcomed Mr. McCann to the District. 7. COMMITTEE REPORTS 7.1. Citizens Advisory Committee (Kiley) • Minutes of the meeting held February 24, 2014 at 8:30 a.m. were provided in the agenda packet. President Kiley explained that the Committee Chair, Mr. Daniel Mole, was unable to attend the Board meeting. He then provided a report regarding matters discussed during the Committee meeting including a presentation regarding water storage in the MWD service area which was provided by Director Brett Barbre, the District's potential representation on the OCSD Board of Directors, the status of the District's annexation to OCWD, and the construction of Well 21. • Next meeting is scheduled to be held March 24, 2014 at 8:30 a.m. 2 2014-037 8. CONSENT CALENDAR Director Collett made a motion, seconded by Director Hawkins, to approve the Consent Calendar. Motion carried 5-0 with Director Collett abstaining from voting on Item No. 8.2. due to a conflict of interest on one of the items. 8.1. Minutes of the Board of Directors Regular Meeting held February 27, 2014 Recommendation: That the Board of Directors approve the minutes as presented. 8.2. Payments of Bills, Refunds and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$1,339,824.19. 8.3. Progress Payment No. 9 for the 2012 Waterline Replacement Project, Phase II Recommendation: That the Board of Directors approve Progress Payment No. 9 in the net amount of $201,378.47 to TBU, Inc. for construction of the 2012 Waterline Replacement Project, Phase II, Job No. 2011-20. 9. ACTION CALENDAR 9.1. Audit Reports for Fiscal Year 2012/13 Mrs. Lugo explained that the District's external auditors, White Nelson Diehl Evans LLP, completed their audit for the previous fiscal year and has rendered an unqualified (clean) opinion. Included in the Report on Internal Control are findings that rose to the level of a significant deficiency (which is the lowest level) and management's response to those comments. Required disclosures in the Communication to Those In Governance Letter were also provided to the Finance-Accounting Committee. Director Hawkins stated that the Finance-Accounting Committee had reviewed these reports at its most recent meeting and recommended that the Board receive and file the audit documents. Director Hawkins made a motion, seconded by Director Melton, to receive and file the FY 2012/13 Comprehensive Annual Financial Report, the Report on Internal Control and the Communication to Those in Governance Letter. Motion carried 5-0. 3 2014-038 9.2. Property Insurance Premium for April 1, 2014 to April 1 , 2015 Mrs. Knight explained that the annual premium to renew the District's property insurance was being submitted for consideration of payment in the amount of $47,445. The District's current policy will expire on March 31, 2014. The new premium includes a 5% discount as the District also obtains workers compensation and general liability insurance coverage through ACWA/JPIA. Last year's premium for property insurance was $47,186. The slight difference in this year's premium is due to a 2.64% increase for building and structure values and a 1.85% increase for fixed equipment values. Director Hawkins stated that the Personnel-Risk Management Committee had discussed this matter at its most recent meeting and recommended that the Board authorize payment of the premium. Director Hawkins made a motion, seconded by Director Collett, to authorize payment in the amount of $47,445 to renew the District's property insurance coverage through ACWA/JPIA for the period April 1, 2014 through April 1, 2015. Motion carried 5-0. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report President Kiley reported that he had been asked to speak at a recent meeting of the East Lake Village Home Owner's Association concerning the drought and District activities. 10.2. Directors' Report None. 10.3. Acting General Manager's Report Mr. Conklin noted that even though the area recently experienced a good rainstorm it unfortunately didn't provide enough precipitation to end the statewide drought. Southern California's water reserves continue to remain relatively healthy and accordingly, the District's message to its customers is to continue with their current water-use efficiency efforts. Mr. Conklin reported on the status of the District's joint agency turf demonstration project with the City of Placentia and noted that the Placentia-Linda Hospital had contacted the District requesting assistance with a clog in their sewer main line. District staff would like to encourage customers not to dispose of "flushable" wipes in the toilet as they don't disintegrate and easily get caught on protrusions in the sewer lines. This message will be included in an upcoming issue of the District's newsletter. Construction work is continuing on the 2012 Pipeline Replacement and Yorba Linda Booster Station projects and pilot-hole drilling for Well 21 has been completed. The budget preparation process continues to move 4 2014-039 forward and the first workshop meeting is scheduled March 17, 2014 at 3:00 p.m. Mr. Conklin further reported that staff had increased the District's reservoir storage volume by 5 million gallons in response to a Red-Flag Warning condition which has been lifted. Additionally, MWD has formally requested for extraction of its stored water in the Orange County groundwater basin during the next fiscal year as part of its Conjunctive- Use-Program (CUP) of which the District is a participant. YLWD is obligated to pump 2K AF of groundwater and pay for it as if it were MWD full-service treated water, not groundwater. As a result, staff is not expecting to be able to deliver as much water at groundwater prices next fiscal year. At the request of Mr. Conklin, Mr. DeCriscio provided the Board with a brief presentation further detailing this matter. Mr. Conklin and Mr. DeCriscio then responded to questions from the Board regarding the use of external pumps, associated pumping costs, the possibility of an in-lieu cash swap between MWD and OCWD, and staff efforts to obtain an additional well site. 10.4. General Counsel's Report Mr. Kidman noted that a Closed Session would be needed and briefly commented on the status of the proposed 2014 Water Bond and a possible increase in state involvement in groundwater regulation. 10.5. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS CONTINUED 11.1. Executive-Administrative-Organizational Committee (Kiley / Collett) • Minutes of the meeting held March 10, 2014 at 4:00 p.m. will be provided at the next regular Board meeting. • Next meeting is scheduled to be held April 14, 2014 at 4:00 p.m. 11.2. Finance-Accounting Committee (Hawkins / Beverage) • Minutes of the meeting held February 24, 2014 at 4:00 p.m. were provided in the agenda packet. • Next meeting is scheduled to be held March 28, 2014 at 8:00 a.m. 5 2014-040 11.3. Personnel-Risk Management Committee (Hawkins / Melton) • Minutes of the meeting held March 4, 2014 at 4:00 p.m. will be provided at the next regular Board meeting. • Next meeting is scheduled to be held April 1, 2014 at 4:00 p.m. 11.4. Planning-Engineering-Operations Committee (Melton / Beverage) • Minutes of the meeting held March 3, 2014 at 10:00 a.m. will be provided at the next regular Board meeting. • Next meeting is scheduled to be held April 3, 2014 at 4:00 p.m. (This meeting was subsequently rescheduled to April 15, 2014 at 4:00 p.m.) 11.5. Public Affairs-Communications-Technology Committee (Collett / Kiley) • Minutes of the meeting held March 3, 2014 at 4:00 p.m. will be provided at the next regular Board meeting. • Next meeting is scheduled to be held April 9, 2014 at 4:00 p.m. 11.6. Organizational Performance Review Ad Hoc Committee (Beverage / Hawkins) • Next meeting is yet to be scheduled. 11.7. YLWD-City of Placentia Joint Agency Committee (Beverage / Melton) • Next meeting is yet to be scheduled. Director Beverage briefly commented on the scheduling of the next Committee meeting and noted that he would not be able to attend the next YL LMAD CAC meeting. Director Collett offered to switch his attendance with Director Beverage. 11.8. YLWD-City of Yorba Linda Joint Agency Committee (Kiley / Collett) • Minutes of the meeting held February 25, 2014 at 6:00 p.m. will be provided at the next regular Board meeting. • Next meeting is scheduled to be held April 22, 2014 at 5:00 p.m. 6 2014-041 11.9. YLWD-MWDOC-OCWD Joint Agency Committee (Kiley / Beverage) • Next meeting is scheduled to be held March 25, 2014 at 4:00 p.m. 12. INTERGOVERNMENTAL MEETINGS (The following items were taken out of order.) 12.1. Yorba Linda LMAD CAC — February 27, 2014 (Collett) 12.5. Yorba Linda LMAD CAC — March 6, 2014 (Collett) Director Collett attended both of the above listed meetings and noted that the Committee would be conducting a discussion with Willdan, the City's consultant, at its next meeting. 12.2. YL City Council — March 4, 2014 (Collett) Director Collett attended and stated that while it was a short agenda there were a number of public comments. 12.3. MWDOC Board — March 5, 2014 (Melton) Director Melton attended and commented on the budget and rates which were discussed during the meeting. 12.7. YL Planning Commission — March 12, 2014 (Melton) Director Melton attended and commented on the SAVI Ranch Land Use and Mobility Vision Plan which was discussed during the meeting. 12.4. OCWD Board — March 5, 2014 (Collett) Director Collett attended and noted that the meeting was standing-room- only due to an agenda item related to the proposed Poseidon Huntington Beach Ocean Desalination Project. He reported that OCWD had elected to hire a public relations firm to provide assistance with 3 recently introduced bills. 12.6. WACO — March 7, 2014 (Kiley/Hawkins) Directors Kiley and Hawkins attended and commented on a presentation regarding water supply reliability in Orange County which was provided during the meeting. 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from March 14, 2014 —April 30, 2014 The Board reviewed the activity calendar and made no additional changes. Director Melton confirmed that the next Planning-Engineering- Operations Committee meeting had been rescheduled to April 15, 2014 at 4:00 p.m. 7 2014-042 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. Senate Governance and Finance Committee Hearing for SB 946 — March 19, 2014 OCSD 60th Anniversary Reception — March 20, 2014 North OC Legislative Alliance Elected Officials Reception — March 27, 2014 MWDOC Elected Officials Forum —April 3, 2014 Director Beverage made a motion, seconded by Director Hawkins, to authorize Director attendance at these events if desired. Motion carried 5-0. 15. CLOSED SESSION The meeting was adjourned to Closed Session at 9:54 a.m. All Directors were present. Also present were Mrs. Knight and Messrs. Conklin and Kidman. 15.1. 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) 15.2. Conference with Legal Counsel — Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Related to line break at 1301 North Rose Drive, Placentia CA 92870. Number of Potential Cases: One 15.3. Conference with Legal Counsel —Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Related to potential claim submitted on behalf of Charles Busch. Number of Potential Cases: One 8 2014-043 15.4. Conference with Legal Counsel —Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Related to written communications from potential plaintiffs threatening litigation. Number of Potential Cases: One 15.5. Conference with Real Property Negotiators Pursuant to Section 54956.8 of the California Government Code Property: 4622 Plumosa Drive, Yorba Linda CA Agency Negotiators: Steve Conklin Negotiating Parties: To Be Determined Under Negotiation: Price and Terms of Payment 15.6. Public Employment (Recruitment) Pursuant to Section 54956 of the California Government Code Title: General Manager 15.7. Conference with Labor Negotiators (Recruitment) Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Koff & Associates, Inc. Unrepresented Employee: General Manager The Board reconvened in Open Session at 10:17 a.m. President Kiley announced that no action was taken during Closed Session that was required to be reported under the Brown Act. 16. ADJOURNMENT 16.1. The meeting was adjourned at 10:18 a.m. A Board of Directors Workshop Meeting is scheduled to be held Monday, March 17, 2014 at 3:00 p.m. The next Regular Board of Directors Meeting will be held Thursday, March 7, 201 , at 8:30 a.m. Steven R. Conklin Board Secretary 9