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HomeMy WebLinkAbout1996-06-27 - Board of Directors Meeting MinutesPage 3521 June 27, 1996 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING June 27, 1996 The June 27, 1996 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Michael J. Beverage at 8:30 a.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present at Roll Call: President Michael J. Beverage Vice President Paul R. Armstrong Sterling L. Fox Arthur C. Korn Carl T. Scanlin Directors absent at roll call none Staff present: William J. Robertson, Secretary/General Manager Arthur G. Kidman, General Counsel Charles Gray, Engineering Manager Ray Harsma, Operations Superintendent Raquel Lazo, Secretary to the General Manager Roger Lubin, Exec. Asst. to the General Manager Beverly Meza, Business Manager Michael Payne, Assistant General Manager Michael Robinson, Assistant Administrator Visitors Rick Walkemeyer, Chief Plant Operator Kenny Witt, MWDOC Andy Banks, Special Counsel Fields & Creason Mr. Witt addressed the Board on legislative issues that the Metropolitan Water District of Southern California (Met) is involved in. He also reported that their adopted budget for 1996-97 is $14 million less than last year, and that Met is committed to reducing staff and exenditures over the next three years. CONSENT CALENDAR Vice President Armstrong asked that Item 7 be removed from the Consent Calendar. On a motion by Director Fox, seconded by Vice President Armstrong, the Board of Directors voted 5-0 to approve Consent Calendar items 1 through 6, and Item 8: Item 1. Minutes of Adjourned meeting, June 12, 1996. Item 2. Minutes of Regular meeting, June 13, 1996. Item 3. Authorization for the Directors to leave the State of California prior to next meeting Item 4. Disbursements of 5274,169.56 on Check Nos. 20328 and 20423 through 20517, a wire to ACWA-HBA in the amount of $19,880.30, dated 06/25/96; and, $94,762.91 on Check Nos. 11205 through 11277 for Payroll No. 12. Item 5. Release Guarantee Bond of $2,000 for the construction of the water facilities installed by Mitsubishi Motor Sales of America, Inc. Item 6. Authorize the General Manager to execute a construction agreement with Vista Murrieta Corporation for $9,600 for construction services for the Valley View Avenue Service Relocations, Job No. 9611. Page 3522 June 27, 1996 Item 8. Terms and Conditions for Sewer Service with Mr. & Mrs. John Stiver, for the property located at 4932 Gem Lane, Job No. S-9613. Item 7. Terms and Conditions for Water Service with Pacific Heritage Development, located at the northwest corner of La Palma Avenue and Camino de Bryant; and authorize the Secretary/General Manager to execute the Quitclaim Certificate on Tract No. 15199, Job No. 9612. Director Armstrong indicated he had a potential conflict of interest on this item, and refrained from discussing and voting on it. On a motion by Director Fox. seconded by Director Scanlin. the Board of Directors voted 4-0-1 (Abstention: Armstrong) to approve Item 7. Kenny Witt left the meeting at the conclusion of this item. On a motion by Vice President Armstrong, seconded by Director Scanlin, the Board of Directors voted 5-0 to enter into closed session, move Item 14 to closed session in order to discuss potential legal challenges to AB 2109, and add Item 32 to the closed session calendar. CLOSED SESSION The Board of Directors entered closed session at 8:55 a.m. Item 32. The Board of Directors discussed pending litigation to which the District is a party, (Subsection (a) of Section 54956.9), County of Orange, Case No. 714408; Plaintiff Daniel Romano and Joann Romano, and Daniel Foldager and Patsy Ann Foldager; Defendant Yorba Linda Water- District, et al. The Board of Directors provided direction to Special Counsel Andy Banks. Mr. Banks left the meeting at the conclusion of this item. Item 29. 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 provided direction to staff. Item 30. Discussion of personnel matters pursuant to Section 54957.6 of the California Government Code, unrepresented employee: General Manager. This item was deferred to the Board of Directors meeting scheduled for July 25, 1996. Item 31. Discussion of Legal Counsel Contract Services pursuant to Section 54957 of the California Government Code. This item was deferred to a future workshop. The date of that workshop will be determined at the July 11, 1996 Board of Directors meeting. Item 14. Consideration of pending litigation pertaining to Assembly Bill 2109. The Board of Directors reported in open session that they: (1) Authorized the AB 2109 Ad-Hoc Committee, comprised of President Beverage and Director Fox, and General Manager Robertson to attend the Senate Local Government Committee hearing scheduled for July 3, 1996; (2) Will send a letter to the Local Government Committee, with copies to Senator Lewis and Assemblyman Pringle, as well as members of the Appropriations Committee with suggestions to improve AB 2109 - although the letter will not be sent until after the AB 2109 Ad-Hoc Committee meets with the City of Yorba Linda. At the direction of the Chair, the District will continue to work with Senator Lewis to attempt to amend the District out of AB 2109. Page 3523 June 27, 1996 The AB 2109 Ad-Hoc Committee scheduled a meeting for Friday, June 28 or Monday, July 1, subject to call by the General Manager. The Board exited closed session at 1 1:10 a.m. President Beverage declared a recess at 11:11 a.m. The meeting reconvened at 11:20 a.m. lt~ President Beverage proposed a toast in celebration of Director Korn's birthday. ACTION CALENDAR Item 9. Consideration of Change Order No. 1 and Progress Pavment No.l, for P.J. Burke Corporation, and amending soils testing agreement with Geo-Environmental, Inc. for rehabilitating Wells 1,5,7, and 12, Richfield Road Renovation Project, Job No. 8954. Engineering Manager Charles Gray reported that Change Order No. 1 requests an increase of $6,398 and a 5-day time extension to perform additional grading and construction of additional sewer laterals. He also stated that Geo-Environmental, Inc. submitted a proposal for an amendment to their contract for required soils testing for hazardous materials. Following discussion, the Board, on a motion by Vice President Armstrong, seconded by Director Fox, voted 5-0 to approve Change Order No. 1, in the amount of $6,398, and a contract time extension of five calendar days; approve Progress Payment No. 1 to PR Burke Corp., in the amount of S124,206.28. less a 10% retention of $12,420.63, for a net payment of $111,785.65; and approve an amendment to the consultant agreement with Geo-EnvIron mental, Inc., in the amount of $5,049, for additional soils testing. Item 10. Consideration of a Consultant Agreement with ASL Consultants for engineering design, construction management, and inspection services to replace Alder Avenue and Dorinda Road pipelines, Job No. 9610. Engineering Manager Charles Gray reported that the project proposes to replace two separate water pipelines: 700 feet of ten-inch pipe at Alder Avenue, and 550 feet of eight-inch pipe on Dorinda Road. Mr. Gray also indicated that staff reviewed the three proposals that were received and found ASL Consulting Engineers' proposal the least costly. He also stated that this project is identified in the current Five-Year Plan, with funding approved in the 1996-97 budget. On a motion by Director Fox, seconded by Vice President Armstrong, the Board of Directors voted 5-0 to authorize the President and Secretary to execute a Consultant Agreement with ASL Consulting Engineers in the amount of $21,200, for engineering design, construction management and inspection services for the replacement of water mains within Alder Avenue and Dorinda Road, Job No. 9610. Item 11 . Consideration of Financial Statements for eleven months ended April 30, 1996. Business Manager Beverly Meza reported that the Water Fund showed a net income of $688,450 and the Sewer Fund showed a net income of $49,331 after ten months. ID No. 1 showed a net income of $450,217, and ID No. 2 showed a net income of $1,630,179, while total assets of $92,184,193 exceeded total liabilities of $23,554,877, for an April 30, 1996 fund equity of $68,629,316. On a motion by Director Scanlin seconded by President Beverage, the Board of Directors voted 5-0 to accept the Financial Statements for the ten months ended April 30, 1996. Page 3524 June 27, 1996 Item 12. Consideration of Early Retirement Incentives Program. Executive Assistant to the General Manager Roger Lubin reported that PERS member agencies may amend their contracts to provide two years additional service credit to employees in designated classes or organizational units. Legislation permitting PERS to offer this optional contract amendment to member agencies was enacted during the severe fiscal crisis faced by many governmental organizations in the early 1990's. PERS offered this contract option as a management tool to make it attractive for employees to opt for retirement - rather than to have the employer mandate layoffs. This issue was discussed with the Personnel Committee in June, 1994. The Committee asked staff to revisit this issue with them once an active employee request for early retirement was made. Two years later, in May, 1996, Operations Superintendent Ray Harsma requested early retirement. As a result of his request, the Personnel Committee discussed this issue once again, on May 21, 1996. The Board of Directors referred this item back to the Personnel Committee, and directed staff to determine whether Directors are eligible for early retirement, secure a copy of PERS Resolution of Intention, and research the possibilities of self funding an early retirement program using annuities as a vehicle to supplement PERS retirement. Item 13. Consideration of New Position - Network Systems Administrator. Executive Assistant to the General Manager Roger Lubin reported that the Budget Report for Fiscal Years 1995-96 and 1996-97, adopted on June 22, 1995, contained a new position entitled "Systems Coordinator." This position, authorized at pay Range 24, was to have become effective July 1, 1996. He also reported that after another year's experience in developing requirements for the District's new computer system, it became apparent that staff should be able to recruit and hire someone in Range 20 - a pay rate some 20 percent less than the figure that was approved in the budget. On a motion by Vice President Armstrong, seconded by Director Fox, the Board of Directors voted 4-1 (Nay: Korn), on a roll call, to adopt Resolution 96-05, which approves the number of authorized positions for Fiscal 1995-96 and 1996-97 and rescinds Resolution 95-09; and adopt Resolution 96-06, which approves the Unit Pay Plan for 1996-97 and rescinds Resolution 95-06, DISCUSSION CALENDAR Item 15. Report on energy savings for the first two months following conversion to "time-of- use" billing for purchased power from Edison Company. On December 14, 1995, Executive Assistant to the General Manager Roger Lubin and Chief Plant Operator Rick Walkemeyer reported that annual savings of $70,000 could be achieved by converting to time-of-use electrical power tariffs, thereby making use of off-peak electrical power rates at several wells and booster pumping stations. Preliminary results are encouraging. During March and April, 1996, the District purchased 413,352 kWh of electricity at a cost of 5.16 cents per kWh. This is 5.94 cents per kWh less than the 14.10 cents per kWh that the District paid to purchase 297,822 kWh in March and April. As a result of this conversion, the District was able to purchase an additional 115,530 kWh of power- in 1996 at no increase in cost when compared with the same period in 1995. The savings of 5.94 cents per kWh represents a decrease of approximately 42 percent in the cost of purchased electrical power. Based on these preliminary results, the District is exceeding its projections by more than 130 percent. This item was for information only, no Board action required Page 3525 June 27, 1996 GENERAL MANAGER'S REPORT Item 16. General Manager William Robertson reported: a. Report on June 15 Bus Tour: Public Information Officer Michael Robinson reported on the tour. b. New Waterlines format: Public Information Officer Michael Robinson distributed the Waterlines newsletter in a revised format. c. District activities: General Manager William Robertson reported that campaign disclosure forms are due July 31. GENERAL COUNSEL'S REPORT Item 17. General Counsel's report. Mr. Kidman reported that under AB 2109 as it is currently constituted, the District would become a dependent special district of the City of Yorba Linda, and, as such, employee contracts and implied contracts would be honored. COMMITTEE REPORTS Item 18. AB 2109 Ad Hoc Committee. The Committee met Tuesday, June '18 at 4:00 p.m. Attending were President Beverage, Director Fox and staff members William Robertson and Mike Robinson. The Committee reviewed a letter to Assemblyman Pringle. President Beverage said he will arrange meetings with elected representatives, and Mr. Robertson indicated staff will send copies of the letter to those who responded to elected officials and the newspaper. Item 19. Executive-Administration Committee. The Committee met June 11 at 3:30 p.m. Attending were President Beverage and Vice-president Armstrong, along with staff members Robertson and Payne. The Committee discussed a recreation agreement with the City of Yorba Linda for Elk Mountain, and were informed that staff would bring an agreement for their approval sometime in July; a cellular telephone tower at Highland Reservoir; and preliminary deal points regarding the transfer of the City of Yorba Linda's sewer system to the District. Item 20. Finance-Accounting Committee. The Committee met June 19 at 9:00 a.m. Attending were Directors Korn and Fox, and staff members Robertson and Meza. They discussed the two- year budget update, credit card processing costs, the Board of Directors' budget, and legal counsel billings. Item 21. Personnel-Risk Management Committee. Will schedule a meeting at the July 27 Board of Directors meeting. Item 22. Planning-Engineering-Operations Committee. Will meet July 2, at 4:30 p.m. Item 23. Public Information Committee. The Committee met June 20 at 9:00 a.m. Attending were President Beverage, Director Korn, staff members Robertson and Robinson, and public information consultant Sheri Johnson of Laer Pearce Associates. The Committee discussed sending a letter to Assemblyman Pringle regarding AB 2109, the new Waterlines format, and public information activities, including: Community Pipeline Meetings, water conservation classes, media relations, and a schools program. INTERGOVERNMENTAL MEETINGS Item 24. Yorba Linda City Council meeting, June 18 (Beverage): An appointment was made to fill a vacancy on the Planning Commission. Page 3526 June 27, 1996 Item 25. MWDOC meeting, June 17 (Fox): reported that Tri-Cities Municipal Water District wants to join MWDOC, and de-annex from Coastal. Item 26. OCWD meeting, June 19 (Scanlin): Nothing of concern to the District transpired. Item 27. LAFCO Advisory meeting, June 20 (Fox): They discussed LAFCO procedures; Sterling Fox was elected Chairman of the LAFCO Advisory Committee. Item 28. Yorba Linda Planning Commission, June 26 (Scanlin) Nothing of concern to the District transpired. BOARD MEMBER COMMENTS/ITEMS FOR FUTURE CONSIDERATION Director Scanlin: Will be out of town from July 15 - July 24. President Beverage: Announced that a group of Rotarians from Mexico will be visiting on July 11, and asked whether staff could arrange a tour of the Delmer Plant. He then recognized Pan Medina for the story that appeared about her in the Orange County Register. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board of Directors reviewed the Activity Calendar and made assignment changes. ADJOURNMENT On a motion by Director Korn, seconded by Director Fox, the Board of Directors voted 5-0, at 1:00 p.m~ to ad*o Thursday, July 11, at 8:30 a.m., at the District's headquarters on Plumosa Drive. w miram i- -iKooertson Secretary/General Manager