HomeMy WebLinkAbout1996-10-10 - Board of Directors Meeting MinutesPage 3557
October 10, 1996
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
October 10, 1996
The October 10, 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
Pati Medina, Customer Service Representative
Beverly Meza, Business Manager
Michael Payne, Assistant General Manager
Michael J. Robinson, Assistant Administrator
SPECIAL RECOGNITION:
Item 1. Introduction of new employee. Beverly Meza introduced Pati Medina, who transferred
to Customer Service Representative II from Meter Reader. Ms. Medina left the meeting at the
conclusion of this item.
CONSENT CALENDAR
Director Beverage requested that Item 3 be pulled from the Consent Calendar, in order to abstain
from approving minutes of a meeting he did not attend. On a motion by Director Fox, seconded
by Vice President Paul R. Armstrong, the Board of Directors voted 5-0 to approve the Consent
Calendar item 2, and items 4 through 7.
Item 2. Minutes of adjourned regular meeting, September 19, 1996.
Item 4. Authorization for the Directors to leave the State of California prior to next meeting.
Item 5. Disbursements of $456,197.62 on Checks 20959 and 20960, and 21092 through
21237; a wire to MWDOC for $559,323.25, dated 10/10/96; $95,482.48 on checks 11729
through 11796 for Payroll 19; and $98,183.67 on checks 11799 through 11873 for Payroll 20.
Page3558
October 10, 1996
Item 6. Progress Payment 2, to Shook Building, Systems, Inc., for design and construction of
a new District warehouse, Job 9416.
Item 7. Deny claim and deny application to present late claim from W. A. Douglass,. Inc.
On a motion by Vice President Paul R. Armstrong, seconded by Director Fox, the Board of
Directors voted 4-0-1 (Beverage abstaining) to approve the following item.
Item 3. Minutes of adjourned regular meeting, October 1, 1996.
ACTION CALENDAR
Item 8. Consider audited financial statements for the year ended June 30, 1996.
On a motion made by Director Fox, and seconded by Director Scanlin, the Board of Directors
voted 5-0 to continue this item to the October 24 Board meeting.
Michael Payne left the meeting at the conclusion of this item.
Item 9. Consideration of Resolution 96-15, in support of Proposition 204. General Manager
William J. Robertson reported that Proposition 204, a $995 million general obligation bond
measure for Bay-Delta environmental restoration and other water programs, known as the Safe,
Clean, Reliable Water Supply Act, will appear on the November 5 ballot. This proposition is
supported by urban and agricultural water interests, environmental groups and business
organizations throughout the state.
On a motion made by Vice-president Armstrong, and seconded by Director Fox, the Board of
Directors voted 5-0-1 on a roll call (Korn abstaining), to adopt Resolution 96-15 in support of
Proposition 204.
DISCUSSION CALENDAR
Item 10. Consider of a position on Proposition 218, the Right to Vote on Taxes Act. General
Manager William J. Robertson reported that Proposition 218 will appear on the November 5
ballot. If passed, all local taxes, benefit assessments and standby charges will be defined as
"special taxes," or "general measures," which require popular vote. New "general taxes" require
a majority approval. "Special taxes" require two-thirds approval.
Mr. Robertson also reported that taxes and assessments levied by special districts are defined as
special taxes. Proposition 218 also requires that any taxes imposed after January 1, 1995 be
repealed, and confirmed at election by November, 1998. All "property related fees" must be
submitted for voter approval. The District imposes fees, such as the backflow monitoring fee,
which may be interpreted as "property related fees," although they are collected on water bills,
not property tax bills.
Page 3559
October 10, 1996
If approved, the measure could affect water and sewer rates.
After discussion by the Board of Directors, the Chair informed staff that it was not necessary to
bring this item back to the Board for additional consideration.
President Beverage declared a recess at 10:00. The meeting reconvened at 10:07.
Item 11. Consideration of policies to guide the water rate process (continued from the Board
meeting of September 19, 1996). General Manager William J. Robertson reviewed policies used
to guide the rate-setting process, and reported that certain conditions changed since the Board
approved water rates for 1995-96 and 1996-97. Metropolitan Water District of Southern
California reduced their rates from $466 to $430.50 per acre foot on July 1, 1996, and Orange
County Water District reduced their planned increase from $95 to $88 per acre foot. Total
estimated savings from these rate changes are forecast at $344,700 for 1996-97.
At the August 22 and September 19 Board meetings, considerable discussion ensued about
changing the 1996-97 water rates, which were adopted by Resolution 95-19, but no consensus
was reached. The Finance Committee also discussed several water rate alternatives at their
September 27 meeting, with no consensus.
Director Korn pointed out policies he believed result in excessive increases in water rates.
President Beverage mentioned that it was important to realize that this items deals with rates and
policies, and that it was necessary to distinguish between them.
On a motion made by President Beverage, and seconded by Director Korn, the Board of
Directors voted 5-0 to leave the water rate at $0.98 per billing unit; to bring a resolution to the
Board at their October 24 meeting that rescinds the rate increase in Resolution 95-19; and to
suspend policies used to guide the rate-setting process.
Chuck Gray and Beverly Meza left the meeting at the conclusion of this item.
GENERAL MANAGER'S REPORT
Item 12. General Manager's report.
1. Heritage Days Parade, October 12. Assistant Administrator Mike Robinson reported
on the upcoming parade.
2. Report on Well 11. Operations Superintendent Ray Harsma reported on repairs
taking, place at Well 11. He indicated that the well would be out of service for
approximately 2 to 3 weeks.
Page 3560
October 10, 1996
3. Status on Computer System. Business Manager Beverly Meza reported that the new
system is stable, and the contract with Dynasty Systems to provide billing software
has been approved by both parties, reviewed by counsel, and will come before the
Board for approval at their next meeting.
4. District activities. No report was made.
GENERAL COUNSEL'S REPORT
Item 11. General Counsel's report. General Counsel Arthur G. Kidman reported that he is
preparing, a year-end legislative report, which will probably be completed next week.
COMMITTEE REPORTS
Item 14. Legislative Ad Hoc Committee. No report.
Item 15. Executive-Administration Committee. President Beverage indicated that he planned to
call a meeting later this month.
Item 16. Finance-Accounting Committee. Met Friday, September 27, at 8:30. Attended by
Directors Sterling Fox and Art Korn, and staff members Robertson, and Meza, as well as Rod
McDaniel, of Diehl, Evans and Company, the District's auditors. They discussed the recently
concluded annual audit - with Mr. McDaniel leaving at the conclusion of this item - and water
rates.
Item 17. Personnel-Risk Management Committee. No report
Item 18. Planning-Engineering-Operations Committee. No report
Item 19. Public Information Committee. Will meet Wednesday, October 16, at 8:00 a.m.
INTERGOVERNMENTAL MEETINGS
Item 20. LAFCO advisory meeting, September 19 (Fox): This meeting was rescheduled to
October 17.
Item 21. SDWCA meeting, September 20 (Korn): They received an actuarial study indicating
how large their reserve needed to be.
Item 22. CSDA Fall Conference, September 22-25 (Beverage/Korn/Fox): President Beverage
reviewed the sessions he attended, and discussed his meeting with Ralph Helm, CSDA's lobbyist,
as well as other networking activities. Director Fox also discussed his networking efforts at the
meeting.
Ray Harsma left the meeting at the conclusion of this item.
Page 3561
October 10, 1996
Item 23. Yorba Linda Planning Commission, September 25 (Scanlin): Nothing of concern to the
District transpired.
Item 24. Yorba Linda City Council, October I (Armstrong): Discussed street-widening projects
and annexation of the Shell property.
Item 25. MWDOC/OCWD/CMWD meeting, October 2 (Scanlin): Attendees were briefed on
MWDOC's education programs. In addition, they were informed that Met's Inland Feeder,
originally scheduled to be on-line in 1998, is now slated to go on-line in 2004.
Item 26. OCWD meeting, October 2 (Scanlin): This was not a separate meeting; it was part of
Item 25.
Item 27. WACO meeting, October 4 (Fox): John Withers gave report on LAFCO, stating that
the South County Study is about to enter Phase II, which has a projected cost of $400,000.
Item 28. ISDOC Board meeting, October 8 (Fox): Director Fox invited his fellow Board
members to an ISDOC luncheon meeting scheduled for November 21.
Item 29. Yorba Linda Planning Commission, October 9 (Scanlin): Nothing of concern to the
District transpired.
BOARD MEMBER COMMENTS/ITEMS FOR FUTURE CONSIDERATION
Carl Scanlin: Stated he will be out of town on October 24, and will not be able to attend the
Board meeting.
Michael Beverage: Suggested a joint presentation on the Bay/Delta to Rotary and the Board of
Directors.
BOARD OF DIRECTORS ACTIVITY CALENDAR
The Board of Directors reviewed the Activity Calendar and made assignment changes. The
Board meetings in November will be held on the 14`h and 26`h. Board meetings December will be
take place on the 12' and 24`x.
CLOSED SESSION
General Counsel Arthur G. Kidman indicated there was no need for a closed session.
Item 30. 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.
Page 3562
October 10, 1996
Item 31. Conference with legal counsel regarding anticipated litigation. Significant exposure to
litigation pursuant to Government Code Section 54956.9(b)(3) (1 case).
On a motion by Director Fox, seconded by Vice-president Armstrong, the Board of Directors
voted 5-0, at 11:32 a.m., to adjourn to Thursday, October 17, at 8:00 a.m., at the District's
headquarters on Plumosa Drive.
E
William . Robertson
Secretary/General Manager