HomeMy WebLinkAbout1994-12-12 - Board of Directors Meeting MinutesPage, 9 ~S -S
December 12, 1994
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS' ADJOURNED MEETING
December 12, 1994
The December 12, 1994, Adjourned Meeting of the Yorba Linda Water District Board of Directors
was called to order by President Carl T. Scanlin at 3:00 p.m. The meeting was held at the District
Headquarters located at 4622 Plumosa Drive, Yorba Linda.
ROLL CALL
Directors =sent at Roll Call:
President Carl T. Scanlin
Vice President Arthur C. Korn
Paul R. Armstrong
Michael J. Beverage
Sterling L. Fox
Vii r
Staff present:
William J. Robertson, Secretary/General Manager
Arthur G. Kidman, Legal Counsel
Charles Gray, Engineering Manager
Ray Harsma, Operations Superintendent
Beverly Meza, Business Manager
Roger Lubin, Exec. Asst. to the General Manager
Michael Payne, Assistant General Manager
Michael J. Robinson, Assistant Administrator
DISCUSSION CALENDAR
Item 1. Selection of legal counsel specializing in Bankruptcy matters. District General Manager
William J. Robertson reviewed Orange County's bankruptcy and its potential impact on District
operations. He indicated the District has $2.65 million invested in the County's investment pool,
representing 11% of our total portfolio. A letter to withdraw $1 million, giving the County their
required 30 day notice, was sent 29 days prior to the County filing for protection. That money
was not transferred to the District.
Mr. Robertson mentioned that the County's next property tax payment to the District is scheduled
for December 20 and 28. He also pointed out that Orange County Water District has 100% of their
investments in the County's pool, which may impact their low interest loans for capital projects.
Mr. Robertson stated that the District has made an official request to the County, asking for the
return of our investments. He also mentioned the District sent RFP's to law firms specializing in
bankruptcy.
Legal Counsel Arthur G. Kidman outlined some of the legal issues the Board of Directors should
consider, and mentioned he had reviewed proposals received from law firms specializing in
bankruptcy. The Board of Directors discussed the capabilities of the law firms responding to the
District's RFP, and reached consensus that they would prefer to engage Rus, Miliband, Williams
and Smith.
On a motion by Director Fox seconded by Director Korn, the Board of Directors voted 5-0 to select
Rus, Miliband, Williams and Smith to represent the District's interests in the Orange County
bankruptcy.
President Scanlin declared a break at 4:12 p.m. The meeting reconvened at 4:26 p.m.
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December 12, 1994
Mr. Kidman informed the Board that he phoned Rus, Miliband, Williams and Smith, and they
accepted our engagement. Both the District and Rus, Miliband, Williams and Smith agreed to seek
other agencies whose interests coincide with the District, to join in whatever actions against the
County might be forthcoming.
On a motion by Director Fox seconded by Director Beverage, the Board of Directors voted 5-0, to
adopt this statement to bondholders: "It is the policy of the Yorba Linda Water District to maintain
the integrity of water and wastewater services provided to residents and businesses within our
service area. Regardless of circumstances arising out of Orange County's bankruptcy, the Yorba
Linda Water District's debts will be serviced by reallocating District funds and deferring capital
projects as may be necessary to honor our commitments to the District's bondholders."
On a moti& by
seconded by Director Beverage, the Board of Directors voted 5-0, to
;r 15, 1994 at 8:30 a.m., at District headquarters on Plumosa Drive.
General Manager/Secretary