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Home My WebLink About1998-06-11 - Board of Directors Meeting MinutesPage 3749 June 11, 1998 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING June 11,1998 The June 11, 1998, Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Sterling Fox at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors vresent at Roll Call: President Sterling L. Fox Vice President Carl T. Scanlin Paul R. Armstrong Michael J. Beverage Arthur C. Korn Staff present: William J. Robertson, General Manager Arthur G. Kidman, General Counsel Lee Cory, Operations Superintendent Charles Gray, Engineering Manager Raquel Lazo, Secretary to the General Manager Beverly Meza, Business Manager Directors absent at roll Roger Lubin, Executive Asst. to the General Manager none Michael Robinson, Assistant Administrator Michael Payne, Assistant General Manager Visitors Richard Freeman CONSENT CALENDAR On a motion by Director Beverage, seconded by Director Armstrong, the Board of Directors voted 5-0 to approve the Consent Calendar. Item 1. Authorize Directors to leave the State of California prior to next meeting. Item 2. Disburse checks and wire transfers totaling $457,044.84 ACTION CALENDAR Item 3. Approve minutes of regular meeting, May 14, 1998. On a motion by Director Beverage, seconded by Vice President Scanlin, the Board of Directors voted 4-0-1 (abstain: Armstrong) to approve the minutes of regular meeting, May 14, 1998. Item 4. Approve minutes of adjourned meeting, May 29, 1998. On a motion by Director Beverage, seconded by Director Armstrong, the Board of Directors voted 3-0-2 (abstain: Fox, Scanlin) to approve the minutes of regular meeting, May 29, 1998. Page 3750 June 11, 1998 Item 5. Consider refunding Improvement District No. 2's General Obligations Bonds. General Manager William J. Robertson reported that the District's financial consultant advised staff that bond interest rates are iow enough that refunding Improvement District No 2's bonds will achieve present worth savings equivalent to seven percent of the principal amount, or $200,000 per year. This will result in a reduction in property taxes of $77 annually on a $350,000 house. At the request of the General Manager, this item was continued until the June 25 meeting. Item 6. Consider selection of independent auditor. Business Manager Beverly Meza reported that staff solicited proposals for independent auditor services. Following a review of proposals by the District's selection committee and interviews with three of the proposing firms, staff recommends selecting Leaf and Cole as the District's auditor for the fiscal years ending 1998, 199, and 2000. This matter was reviewed at the June 5 Finance Committee meeting. On a motion by Director Beverage, seconded by President Fox, the Board of Directors voted 5-0 to authorize the General Manager to execute a consulting agreement with Leaf & Cole to perform auditing services for 1998, 1999, and 2000. Item 7. Consider financial statements for the nine month period that ended March 31, 1998. Business Manager Beverly Meza reported that the Water Fund showed a net income of $369,336 and the Sewer Fund a net loss of $16,504. ID 1 showed a net income of $589,166, and ID 2 a net income $1,390,122 for this period. Total assets of $97,333,676 exceed total liabilities of $20,467,852 for a fund equity of $76,865,824. On a motion by Director Beverage, seconded by Director Armstrong, the Board of Directors voted 5-0 to accept the financial statements for nine months ended March 31, 1998. Beverly Meza left the meeting at the conclusion of this item. Item 8. Consider proposed terms and conditions for water service with Majestic Realty Company for property located south of Savi Ranch Parkway and east of Eastpark Drive. Engineering Manager Chuck Gray recommended that the Board of Directors approve quitclaim easements and terms and conditions for water service with Majestic Realty Company. On a motion by Director Beverage, seconded by Vice President Scanlin, the Board of Directors voted 5-0 to approve quitclaim easements and terms and conditions for water service with Majestic Realty Company. GENERAL MANAGER'S REPORT Item 9. General Manager's oral report and comments: Page 3751 June 11, 1998 a) General Counsel Arthur G. Kidman reported on OCWD's annexation policy, their current annexation moratorium, and the impact it has on Shell-Toll's proposed development within the District. b) Main Street Fair, June 7: Assistant Administrator Mike Robinson reported on the District's participation at the Main Street Fair. c) Annual RACES Event, June 27 and 28, Santiago Reservoir: Assistant General Manager Michael Payne reported that the District will test its HAM radio at this annual amateur field radio exercise. d) Option B warrants: General Manager William J. Robertson reported that the District will consider packaging these warrants and attempt to sell them to a bank next year. President Fox declared a recess at 9:18 a.m.. The meeting reconvened at 9:27 a.m. COMMITTEE REPORTS Item 10. Executive-Administration Committee. No report. Item 11. Finance-Accounting Committee. The Committee met June 5, 1998. Attending was Director Scanlin and staff members Robertson, Payne, and Meza. The Committee discussed the selection of an auditor for 1998, '99, and '00, Option B warrants, and related issues. Item 12. Legislative Ad-Hoc Committee. No report. Item 13. Orange County Water District Ad Hoc Committee. The Committee scheduled a meeting for July 20 at 3:30 p.m. Item 14. Personnel-Risk Management Committee. Set a meeting for June 16 at 3:30 p.m. Item 15. Planning-Engineering-Operations Committee. Set a meeting for June 17 at 8:30 a.m. Item 16. Public Information Committee. The Committee met June 3, 1998. Attending were Directors Beverage and Armstrong, along with staff members Robertson, Payne, Robinson, and a staff member from Laer Pearce and Associates. The Committee discussed a draft of the Annual Report, which is scheduled for publication by July 1, 1998. Item 17. Shell Ad-Hoc Committee. No report. INTERGOVERNMENTAL MEETINGS Item18. Yorba Linda City Council meeting, June 2 (Korn): Nothing of concern to the District transpired. Item 19. OCWD meeting, June 3 (Scanlin). Director Scanlin reported that they discussed annexation issues. Page 3752 June 11, 1998 Item 20. MWDOC/CMWD joint workshop, June 4 (Scanlin). Director Scanlin reported that nothing of concern to the District transpired. Item 21. Yorba Linda Planning Commission meeting, June 10 (Scanlin) This meeting was canceled. Item 21a. WACO meeting, June 10 (Fox) Attendees learned that the state's water supply was 315 percent of normal, and discussed SB 1391 and its implications for the Metropolitan Water District of Southern California (Met), BOARD MEMBER COMMENTS/ITEMS FOR FUTURE CONSIDERATION Paul Armstrong: Suggested that the District consider becoming a clearing house for all community concerns and problems, receive and route their phone calls to the proper public agency. President Fox referred this item to the Public Information Committee. Carl Scanlin: Asked for a report on the responses customer service is giving to people who do not understand their water bill. Art Korn: Will be out of town from July 11 through July 19. Michael Beverage: Will be out of town from July 18 through July 28. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board of Directors reviewed the Activity Calendar and made assignment changes. At the Direction of the Chair, the Board of Directors entered closes session at 10:08 a.m. CLOSED SESSION Item 22. Pending litigation to which the District is a party, (Subsection (a) of Section 54956.9), County of Orange, Chapter 9, Case No SA 94-22272-JR; Orange County Investment Pools, Chapter 9, Case No. SA 94-22273-JR before the US Bankruptcy Court, the Central District of California. The Board of Directors took no action on this item. The Board of Directors exited closed session at 10:34 a.m. ADJOURNMENT On a motion by Director Beverage, seconded by Vice President Scanlin, the Board of Directors voted 5-0, at 10:38 a.m., to adjourn. The next regular meeting is scheduled for Thursday, June J5, 1998, at 8:30 a.m. in the District Boardroom. William J. Robertson Secretary/General Manager