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Home My WebLink About2009-03-26 - Board of Directors Meeting Minutes 2009-040 YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING March 26, 2009 The March 26, 2009 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 8:30 a.m. The meeting was held at the District's Administrative Office at 1717 East Miraloma Avenue, Placentia CA 92870. DIRECTORS PRESENT STAFF PRESENT John W. Summerfield, President Ken Vecchiarelli, General Manager William R. Mills, Vice President Pat Grady, Assistant General Manager Paul R. Armstrong Art Kidman, General Counsel Michael J. Beverage Steve Conklin, Engineering Manager Ric Collett Lee Cory, Operations Manager Diane Cyganik, Finance Director Gina Knight, HR Manager Cindy Botts, Management Analyst Annie Alexander, Executive Secretary ADDITIONS/DELETIONS TO THE AGENDA Item No. 8 was removed from the agenda. PUBLIC COMMENTS None. SPECIAL RECOGNITION None. CONSENT CALENDAR On a motion by Director Mills, seconded by Director Collett, the Board voted 5-0 to approve the Consent Calendar. Director Collett abstained from voting on Check No. 51226 of Item No. 2 due to a business conflict. 1. Minutes of the Regular Board of Directors Meeting held March 12, 2009 Recommendation: Approve the minutes as presented. 2. Payment of Bills, Refunds, and Wire Transfers Recommendation: Ratify and authorize disbursements in the amount of $1,008,487.69. 3. Progress Payment No. 10 for the Highland Reservoir Replacement Project Recommendation: Approve Progress Payment No. 10 in the net amount of $287,470.62 to Schuler Engineering Corporation and 10% retention of $31,941.18 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 2009-041 4. Progress Payment No. 22 for the Lakeview Reservoir Project Recommendation: Approve Progress Payment No. 22 in the net amount of $172,735.27 to SSC Construction, Inc. and 5% retention of $9,091.33 deposited to City National Bank escrow account for construction of the Lakeview Reservoir Project, Job No. 200704. 5. Independent Accountants' Report - Cash Out Audit of Former General Manager Recommendation: Receive and rile the Independent Accountants' Report on Applying Agreed Upon Procedures for the Cash Out Audit of Michael A. Payne, former General Manager. 6. Arbitrage Calculation on YLWD Series 2003 Certificates of Participation Recommendation: Receive and file the Independent Accountants' Report on Applying Agreed Upon Procedures for the Installment Arbitrage Rebate Report for the 2003 Certificates of Participation. ACTION CALENDAR 7. Risk Management Claims Policy Resolution Ms. Knight introduced the item and explained that the proposed policy would establish procedures and provide staff with guidelines for handling liability claims. The Personnel-Risk Management Committee reviewed the policy at its last meeting and recommends adoption. Ms. Knight then responded to questions from the Board regarding the difference between the District's Retrospective Allocation Point and Retrospective Attachment Point. On a motion by Director Collett, seconded by Director Armstrong, the Board voted 5-0 on a Roll Call to adopt Resolution 09-03 Implementing the District's Risk Management Claims Policy. 8. Employee-Employer Relations Resolution This item was removed from the agenda. 9. Citizen's Advisory Committee Appointments Mr. Vecchiarelli distributed an updated list of proposed appointees and explained that staff would like to amend their recommendation to include appointment of all 18 individuals. On a motion by Director Mills, seconded by Director Armstrong, the Board voted 4-1, with Director Beverage voting No, to appoint 18 members of the Citizens Advisory Committee as recommended by staff. Mr. Vecchiarelli stated that the committee's first meeting would be conducted the following week. 2 2009-042 DISCUSSION ITEMS 10. Water Conservation Ordinance Mr. Vecchiarelli explained that the Executive-Administrative-Organizational Committee had reviewed the draft Ordinance at its last meeting. The finalized Ordinance will need to include a monetary incentive for water conservation in order to comply with MWD's criteria. These new conservation measures will represent a drastic culture change. Staff then responded to questions from the Board regarding the different Water Supply Shortage levels and their possible affects on existing and future customers. The Board and staff then discussed suggested changes to the Ordinance and the implementation plan. 11. Status of Hidden Hills Reservoir Project Mr. Conklin reported that staff was working with the construction contractor on completing an agreement and obtaining the appropriate bonds and insurance coverage. Staff is also working with the State Parks Department on the required permit and expects execution the following week. The easement agreement with Shapell has been executed. Staff plans to issue a Notice to Proceed to the contractor in April. Construction is expected to be complete by May or June 2010. REPORTS. INFORMATION ITEMS AND COMMENTS ' 12. a. President's Report No report was given. b. Directors' Reports No report was given. C. General Manager's Report Mr. Vecchiarelli reported that FEMA has approved 5 of the 7 projects submitted for reimbursement from the Freeway Complex Fire. This represents a total of approximately $120,000 of the $157,000 submitted for reimbursement. Staff does not have specific information regarding when reimbursement can be expected. COMMITTEE REPORTS 13. a. Executive-Administrative-Organizational Committee (Summerfield/Mills) Alternate: Collett 1) Minutes of meeting held March 17 were provided in the agenda packet. Directors Summerfield and Mills attended. Items discussed during the meeting were as follows: Water Conservation Ordinance; reports on legislative and grant activities; and General Counsel's monthly summary billing report. 2) Meeting scheduled for April 21, 4:00 p.m. 3 2009-043 b. Finance-Accounting Committee (Beverage/Summerfeld) Alternate: Mills 1) Minutes of meeting held March 13 were provided in the agenda packet. Directors Beverage and Summerfield attended. Items discussed during the meeting were as follows: Independent Accountants' Report on Applying Agreed Upon Procedures for the Cash-Out Audit of Michael A. Payne, former General Manager; Independent Accountants' Report on Applying Agreed Upon Procedures for Arbitrage Calculation on 2003 Certificates of Participation; Investment Report ending January 31, 2009; Monthly Financial Statements for the Period Ending January 31, 2009; and Monthly Portfolio Report for the Period Ending February 28, 2009. 2) Meeting scheduled for April 14, 4:00 p.m. C. Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summenre/d 1) Meeting scheduled for April 13, 4:00 p.m. d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1 1) Meeting scheduled for April 2, 4:00 p.m. e. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong 1) Minutes of meeting held March 19 were provided in the agenda packet. Directors Collett and Beverage attended. Items discussed during the meeting were as follows: 2009 Newsletter Campaign; Water Conservation Ordinance Implementation Plan; current public relations activities; and update on new financial, utility billing, electronic imaging and agenda automation software. 2) Meeting scheduled for April 7, 4:00 p.m. f. MWDOC/OCWD Ad Hoc Committee (Mills/Collett) Alternate: Summerfield 1) Minutes of meeting held March 24, 4:00 p.m. were not provided at the Board meeting. Mr. Vecchiarelli provided a summary of what was discussed during the Committee meeting including the following: water supply; MWD water rates; LAFCO Governance Study; and the Water Conservation Ordinance. 2) Meeting scheduled for May 26, 4:00 p.m. 4 1 2009-044 g. City of Placentia Ad Hoc Committee (BeverageNecch iarel I i) 1) Meeting to be scheduled. INTERGOVERNMENTAL MEETINGS 14. a. MWDOC Board, March 18 (Staff) Staff did not attend. b. OCWD Board, March 18 (Staff) Staff did not attend. C. Yorba Linda City Council, March 17 (Armstrong) Director Armstrong attended and commented on several improvement projects discussed during the meeting. A public hearing regarding removal of a gate across a horse trail was also conducted. d. Yorba Linda Planning Commission, March 25 (Summerfield) Director Summerfield attended and made note of some of the items on the agenda including a request to construct a retaining wall at the Vista Del Verde community, construction on Bastanchury Road near the Yorba Linda Christian High School, and the new process of approving second story additions through the Zoning Department. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after March 26, 2009. Agenda is available in the District office prior to meeting. A ril MWDOC/MWD Workshop, Apr 1, 7:30 a.m. Staff OCWD Board, Apr 1, 5:00 .m. Staff Planning-Engineering-Operations Committee, Apr 2, 4:00 .m. Mills/Armstrong Public Information-Technology Committee, Apr 7, 4:00 .m. Collett/Beverage Yorba Linda City Council, Apr 7, 6:30 .m. Mills District Board Meeting, Apr 9, 6:30 .m. Personnel-Risk Management Committee, Apr 13, 4:00 .m. Armstrong/Collett Finance-Accounting Committee, Apr 14, 4:00 .m. Bevera a/Summerrield MWDOC Board, Apr 15, 8:30 a.m. Staff OCWD Board, Apr 15, 5:00 .m. Staff Yorba Linda Planning Commission, Apr 15, 7:00 .m. Collett Executive-Admin-O anizational Committee, Apr 21, 4:00 .m. Summerfield/Mills Yorba Linda City Council, Apr 21, 6:30 .m. Armstrong District Board Meeting, Apr 23, 8:30 a.m. Yorba Linda Planning Commission, Apr 29, 7:00 .m. Summerfield 5 2009-045 CONFERENCES AND SEMINARS 15. Orange County Water Summit - May 15, 2009 None of the Directors expressed interest in attending this event. Mr. Vecchiarelli and Ms. Botts both plan to attend. ADJOURN TO CLOSED SESSION The Board adjourned to Closed Session at 10:08 a.m. All Directors were present. Also present were Messrs. Vecchiarelli, Grady and Kidman and Mses. Knight and Park. 16. Conference with Legal Counsel - Anticipated Litigation Significant Exposure to Litigation Pursuant to Subdivision (b)(1)(b) of Section 54956.9 of the California Government Code Number of Potential Cases: Unknown The exposure to litigation arises from assertions of District responsibility for property and related losses incurred during the "Freeway Complex" firestorm of November 15 and 16, 2008. The Board reconvened in Open Session at 10:31 a.m. President Summerfield reported that no action was taken during Closed Session that was required to be reported under the Brown Act. ADJOURNMENT ' The meeting adjourned at 10:32 a.m. The next meeting of the Board of Directors is scheduled for April 9, 2009, at 6:30 p.m. K nneth R. Vecchiarelli Secretary 6