HomeMy WebLinkAbout2003-11-25 - Board of Directors Meeting Minutes2003-109
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS MEETING
November 25, 2003
8:30 A.M.
The November 25, 2003 regular meeting of the Yorba Linda Water District Board of Directors
was called to order by President John W. Summerfield at 8:30 a.m. The meeting was held at
District Headquarters, 4622 Plumosa Drive, Yorba Linda.
Directors Present at Roll Call
John W. Summerfield, President
William R. Mills, Vice President
Michael J. Beverage
Arthur C. Korn
Directors Absent at Roll Call
Paul R. Armstrong
Staff Present:
William J. Robertson, General Manager
Arthur G. Kidman, District General Counsel
Lee Cory, Operations Manager
Beverly Meza, Business Manager
Michael Payne, Assistant General Manager
Michael Robinson, Assistant Administrator
William Moorhead, Senior Project Engineer
Amelia Cloonan, Administrative Secretary
Ricardo De Anda, Meter Reader II
Jose De LaTorre, Meter Services Technician
Sven Hermelin, Meter Services Representative
Todd Howard, Information System Technician
Visitors present: Brett Barbre, MWDOC Director
Kathryn Beseau and Adey Legesse, Moreland & Associates
SPECIAL RECOGNITION
1. William J. Robertson, General Manager, recognized Sven Hermelin, Meter Services
Representative, for 15 years service to the District.
2. Michael Payne, Assistant General Manager, introduced new employee Todd Howard,
Information System Technician.
3. Beverly Meza, Business Manager, recognized Jose De La Torre, Meter Services
Technician, on his promotion.
4. Beverly Meza, Business Manager, recognized Ricardo de Anda, Meter Reader II, on his
promotion.
Ricardo De Anda, Jose De La Torre, Sven Hermelin and Todd Howard left the meeting at 8:38
a.m.
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Brett Barbre, MWDOC Director, spoke about negotiations for a new General Manager at
MWDOC. He also stated there will be a rebate coming back to the District but was not sure of
the amount. Additionally, he spoke about the possibility MWDOC or OCWD might take over
the desalination plant in Hungtington Beach. Huntington Beach prefers a public agency's
involvement. OCWD has expressed an interest in pursuing the issue, and MWDOC is
supporting OCWD. Shea has agreed to come in to finance the plant.
Perchlorates will be discussed at the MWDOC meeting tomorrow.
Mr. Barbre congratulated Vice President Mills on his Southern California leadership award.
CONSENT CALENDAR
On a motion by Director Beverage, seconded by Vice President Mills, the Board of Directors
voted 4-0 to approve the Consent Calendar.
5. Approve minutes of regular meeting November 13, 2003.
6. Approve minutes of special meeting November 20, 2003. This item was continued to the
meeting of December 11, 2003.
7. Authorize directors to leave the State of California prior to next meeting.
8. Approve disbursements of $444,583.70.
9. Approve Consultant Agreement with Carollo Engineers to prepare an updated Water
Master Plan for the District, Job No. 200218.
ACTION CALENDAR
10. Consideration of Resolution 03-16 Setting Water Development and Customer Service Fees.
William J. Robertson, General Manager, presented the report. He explained there was a
typographical error in one of the rates listed in the Resolution. The new Resolution reflects
the proper fee.
On a motion by Director Beverage, seconded by Vice President Mills, the Board of
Directors voted 4-0-1 on a Roll Call vote, with President Summerfield, Vice President
Mills, and Directors Beverage and Korn voting Yes and Director Armstrong Absent, to
adopt Resolution No. 03-16 "Adopting Water Development and Customer Service Fees
and Rescinding Resolution No. 03-13".
11. Consider Acceptance of the Audited Financial Statements for Twelve Months Ended June
30, 2003. Beverly Meza, Business Manager, introduced Kathryn Beseau, Moreland and
Associates, who presented the report and gave explanations about the audited financials.
Amanda Beck, reporter for The Yorba Linda Star, and Todd Howard, Information Systems
Technician, entered the meeting at 8:45 a.m. Brett Barbre left the meeting at 8:46 a.m.
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Questions were asked of Ms. Beseau. Explanations were given, and there was lengthy
discussion for purposes of clarification. Ms. Beseau presented three letters. The first letter,
the management letter, indicated there were no matters found that need to be brought to the
attention of the Board. The second letter was written to the audit committee indicating how
the audit was conducted. The third letter is Gann limit requirement, which indicates that
calculations have been done correctly.
The Finance Committee asked Moreland and Associates to bring a proposal for some
additional work in areas where they could be of help. Ms. Beseau presented a letter to the
members of the Board outlining the areas.
On a motion by Vice President Mills, seconded by Director Beverage, the Board of
Directors voted 4-0 to add bullet item number one of the letter, regarding cutoff of
expenses when the General Manager leaves, to the Agenda today. The matter arose after
publication of the Agenda, and involved urgency.
On a motion by Vice President Mills, seconded by Director Beverage, the Board of
Directors voted 4-0 to authorize Moreland and Associates to perform the cutoff of expenses
when the General Manager leaves.
Director Korn asked that the balance of the letter be presented to the Finance Committee to
discuss the internal checks presented.
On a motion by Director Beverage, seconded by Director Korn, the Board of Directors
voted 4-0 to receive and file the Audited Financial Statements for the twelve months ended
June 30, 2003.
A recess was declared at 9:55 a.m. Kathryn Beseau and Adey Legesse left the meeting. The
Board reconvened at 10:12 a.m. with all Directors, except Director Armstrong, present.
DISCUSSION CALENDAR
12. Discussion of water rates. William Robertson, General Manager, presented the report.
This item is for information only, no Board action required.
William Robertson stated the purpose of this item is for discussion of the water rate report
by the Board, to see if changes should be made and to get input from the Board members.
The Board will vote on this item at the Board meeting of December 11. The Finance
Committee has been meeting to discuss this report. William Robertson asked if the
members of the Finance Committee wished to make any remarks. Director Beverage stated
the report contains staff recommendations and options and indicates which planned loss
would be if a particular suggested rate is chosen.
Beverly Meza entered the meeting at 10:25 a.m.
Director Korn commented on the graphical presentations in the handout and the
comparisons made therein, for example, fixed charge vs. monthly rate. There was a
lengthy discussion.
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Michael Payne left the meeting at 10:43 a.m.
Director Beverage stated staff's recommendation is to try to take care of the perception that
District's rate is higher than Southern California's rate, which is not the case.
Amanda Beck left the meeting at 11:25 a.m. A recess was called at 11:27 a.m. Beverly Meza
left the meeting. The Board reconvened at 11:35 a.m. with all Directors, except Director
Armstrong, present.
GENERAL MANAGER'S REPORT
13. General Manager's oral report and comments.
a) General Counsel Kidman mentioned the changes the District made because of threats
from Sacramento to take tax revenue. This year nothing happened, because revenue
enhancement was not seriously considered.
b) Fats, Oils and Grease notification. Lee Cory, Operations Manager, spoke about the
water discharge order. Zero sewage spills is one requirement. Orange County
Sanitation District is the lead agency of this effort. With respect to the FOG program, a
lot of spills have been attributed to excess fats going into the drains and causing
buildup. Part of the program is public outreach and education. Agencies are being
asked to join together to fund the outreach program. The dollar amount would be
divided by population of respective agencies. It appears this option will be less costly
than the District doing it on its own.
c) District activities. The District's Employee Recognition Dinner will be held December
13. President Summerfield, Vice President Mills and Director Beverage indicated they
would attend.
COMMITTEE REPORTS
14. Executive-Administration Committee (Summerfield/Mills)
Vice President Mills reported there was discussion at the meeting held November 24, 4:00
p.m., about what would take place at the December 11 Board meeting for the District and
the Public Financing Corporation.
15. Finance-Accounting Committee (Kom/Beverage)
Summary minutes of meeting held November 19, 9:00 a.m. Water rates, draft water rate
report.
16. Personnel-Risk Management Committee (Summerfield/Korn)
Summary minutes of meeting held November 17, 8:30 a.m. International Custom
Enterprises, liability claims, recruitment status.
17. Planning-Engineering-Operations Committee (Armstrong/Mills)
Summary minutes of meeting held November 18, 3:00 p.m. Developer requests for
refunds, Highland Reservoir replacement, Water Master Plan update, administration
building, Education program about control of Fats, Oils and Grease.
18. Public Information Committee (Beverage/Armstrong)
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19. Orange County Water District Ad Hoc Committee (Summerfield/Beverage)
Reschedule meeting to January 26, 2004, 4:00 p.m.
20. MWDOC Ad Hoc Committee (Summerfield/Kom)
Meeting scheduled for January 19, 2004, 4:00 p.m.
BOARD OF DIRECTORS ACTIVITY CALENDAR
Authorization to attend meetings scheduled after November 25, 2003. Agenda is available in the
District office prior to meeting.
Yorba Linda Planning Commission, November 26, 7:30 p.m.
IDOC Board, December 2, 7:30 a.m.
Yorba Linda City Council, December 2, 6:30 p.m.
MWDOC/MWD Jt Workshop, December 3, 8:30 a.m.
OCWD, December 3, 6:00 p.m.
WACO, December 12, 7:30 a.m.
Yorba Linda Planning Commission, December 10, 7:30 p.m.
Yorba Linda City Council, December 16, 6:30 p.m.
MWDOC, December 17,9:00 a.m.
OCWD, December 17, 6:00 p.m.
WACO, January 2, 2004, 7:30 a.m.
ISDOC Board, January 6, 7:30 a.m.
Yorba Linda City Council, January 6, 6:30 p.m.
MWDOC/MWD A. Workshop, January 7, 8:30 a.m.
Yorba Linda Planning Commission, January 14, 7:30 p.m.
Yorba Linda City Council, January 20, 6:30 p.m.
MWDOC, January 21, 9:00 a.m.
OCWD, January 21, 6:00 p.m.
Yorba Linda Planning Commission, January 28, 7:30 p.m.
ISDOC Membership, January 29, 11:30 a.m.
The Board of Directors went into Closed Session at 11:50 a.m.
Korn
Armstrong
Mills
Korn
Mills
Mills
CLOSED SESSION
21. Discussion of pending litigation to which the District is a party, (Subsection (a) of Section
54956.9), Superior Court of California, County of Orange, Central Justice Center, Case No.
815921 Huntington Beach vs. OCWD, and Case No. 818852 Fountain Valley vs. OCWD.
22. Discussion of potential litigation to which the District may be a party, (Subsection (c) of
Section 54954.2 and Subsection (b) of Section 54956.9, International Custom Enterprises.
23. Discussion of security related issues, (Threat to Public Services or Facilities, Government
Code Section 54957).
24. Discussion of pending litigation to which the District is a party, (Subsection (a) of Section
54956.9), Superior Court of California, County of Orange, Central Justice Center, Case No.
11919 Gateway Pacific Contractors, Inc.
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The Board of Directors came out of Closed Session at 12:05 p.m. No action was taken by the
Board in Closed Session.
ADJOURNMENT
On a motion by Director Korn, seconded by Director Beverage, the Board of Directors voted 4-0
to adjourn at 12:05 p.m.
The next regular meeting of the Board is scheduled for Thursday, December 11, 2003 at 8:30
a.m., at 913 South Richfield Road, Placentia, CA 92870.
Michael A. Payne
Secretary/General lU
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