Loading...
HomeMy WebLinkAbout1992-07-09 - Board of Directors Meeting MinutesPage s>LL July 9, 1992 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING July 9, 1992 The July 9, 1992, Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by Paul R. Armstrong, President, at 8:30 a.m. The meeting was held at the District Headquarters located at 4622 Plumosa Drive, Yorba Linda. Directors present at Roll Call: President Paul R. Armstrong Vice President Sterling L. Fox Arthur C. Kom Carl T. Scanlin Directors absent at Roll Call: Roy Knauft, Jr. Visitors Present: None. Staff present: William Robertson, Secretary/General Manager Arthur G. Kidman, General Counsel Barbara Bower, Secretary to the General Manager Charles Gray, Engineering Manager Ray Harsma, Operations Superintendent Beverly Meza, Acting Business Manager Michael Payne, Assistant General Manager Michael Robinson, Assistant Administrator Ken Vecchiarelli, Senior Engineering Technician INTRODUCTION OF VISITOR AND PUBLIC PARTICIPATION Item 1. Introduction of new employee, Ken Vecchiarelh, Senior Engineering Technician. Charles Gray, Engineering Manager, introduced Ken Vecchiarelh to the Board of Directors. On behalf of the Board, President Armstrong welcomed Mr. Vecchiarelli to the District. CONSENT CALENDAR Prior to voting on the Consent Calendar, President Armstrong noted that Mr. Payne's name is typed on the signature page attached to Progress Payment 18 in Item No. 5 and it should be changed to Mr. Gray. Mr. Gray responded that the next, and subsequent, Progress Payments will reflect the correction. On a motion by Director Korn, seconded by Director Scanlin, the Board of Directors voted 4-0 to approve Consent Calendar as follows: Item 2. Minutes of the Regular meeting of June 25, 1992. Item 3. Authorization for the Directors to leave the State of California prior to next meeting. Item 4. Payment of bills, payroll and refunds in the amount of $631,737.26 on Check Nos. 11523 though 11608; and Payroll Check Nos. 3501 through 3566. Item 5. Approval of Progress Payment No. 18 to BFI Constructors in the amount of $12,375.00 for the construction of the Elk Mountain Reservoir, and authorize staff to deposit $1,375.00 with Escrow Agent El Dorado Bank as a substitute for retention earnings, Job 8918. Sc;'6 7 Page 7 July 9, 1992 Item 6. Approval of an Progress Payment No. 12 in the amount of $167,332.50; Change Order No. 10, decreasing the contract price in the amount of $3,036.25 and Change Order No. 11, decreasing the contract price in the amount of $25,840.25 for construction of the Camino De Bryant Reservoir, Job 8935. Item 7. Approval of an increase of $30,788.00 for construction management and inspection services with ASL Consultants, Incorporated for the Camino De Bryant Reservoir, Job 8935. Item 8. Approval to release the Guarantee Bonds with the Developers for Parcel Map Numbers 84-1077 and 88-217. Item 9. Acceptance of the Treasurer's Report for May 31, 1992. ACTION CALENDAR Item 10. Consideration of approval of Agreements for construction, construction management/ inspection, and soils and materials testing services for the Lomas De Yorba Booster Station. Charles Gray, Engineering Manager, reported the District received 18 bids for construction of the Booster Station project. The low bidder is Taymech Corporation who built the District's Santiago Reservoir Booster Station. Mr. Gray reported the District solicited three proposals for construction management and inspection services but only two firms responded. ASL Consultants will provide the best services at the lowest overall price. Lastly, Mr. Gray reported the District solicited proposals for soils and materials testing services and reviewed the process by which staff determines the lowest overall price. ICG Incorporated will provide the best services at the lowest overall cost. There was a discussion regarding time to construct the Booster Station. Mr. Gray reported construction will take one year, which is not a problem to the District, and it will be running by next summer. On a motion by Director Korn, seconded by Vice President Fox, the Board of Directors voted 4- 0 to: 1) Award a Booster Station construction contract to Taymech Corporation in the amount of $377,830.00 and authorize the President and Secretary to execute the contract subject to review and approval as to form by General Counsel; 2) Return bid security bonds to the other contractors following execution of the contract by the District; 3) Authorize the President and Secretary to execute consultant contracts with: a) ASL Consulting Engineers for construction management and inspection services in the amount not to exceed $52,500.00, and b) ICG Incorporated for soils and materials testing services at the fees and rates specified in their proposal. Item 11. Consideration of the Financial Statements for the eleven months ended May 31, 1992. Beverly Meza, Acting Business Manager, reviewed the May 31, Financial Statements with the Board of Directors. Ms. Meza reported that net income in the Water Fund decreased as of May 31, however, preliminary data for June indicate net revenue is close to projections identified in the adopted 1992-93 Budget. On a motion by Director Scanlin, seconded by Director Korn, the Board of Directors voted 4-0 to accept the Financial Statements for the eleven months ended May 31, 1992. Item 12. Consideration of Item 12 was deferred until after Item 16 to wait for Director Knauft. Item 13. Consideration of refinancing the 1979 Allen-McColloch Pipeline Bonds. Prior to discussion, Director Korn declared that he is Trustee of a Revocable Family Trust which holds AMP Bonds and asked General Counsel for a ruling on a possible conflict of interest. Mr. Arthur G. Kidman, District General Counsel, discussed the conflict of interest code, reported the Page 12=9 - July 9, 1992 law is unclear as to the definition of Trustees for Revocable Family Trust's, and he would have to review the Trust agreement to make a specific ruling. Director Korn reported he did not have the Trust agreement with him, therefore, he declared a conflict of interest, did not participate in further discussion and abstained from voting on this matter. Mike Payne, Assistant General Manager, conducted an audio/visual presentation on the Allen- McColloch Bonds refinancing proposal and reviewed details of three alternatives: (1) Pay off existing bonds. Mr. Payne reported that under this alternative the cost to pay off existing bonds is $1,303,429. TIC and Santiago Water District owe less than $10,000 each so they will pay off their existing AMP bonds. Mr. Payne did not recommend this alternative because it unnecessarily draws down construction funds needed to build projects. Director Fox requested clarification of the staffs position. Mr. Payne responded that to pay off existing bonds would draw down the I.D.-1 and I.D.-2 construction funds when those funds are better used to finance construction of new facilities, and the Western Service Capital Improvement/Replacement Fund will be needed to construct facilities identified in the Five Year Plan. (2) Continue with fixed interest rate financing already in place. Mr. Payne reported that under this alternative the District would not participate in the AMP refinancing and continue with the current annual lease payments. The current bonds have a fixed interest rate of 7.3% and are not assumable so Met would be forced to secure new financing when the take over the AMP. Mr. Payne did not recommend this alternative because of the high annual cost relative to Alternative #3 and Met did not prefer this alternative. One agency prefers this alternative. (3) Participate in low interest adjustable rate refinancing. Mr. Payne reported that under this alternative the AMP bonds would be refinanced with an adjustable rate loan which currently have an interest rate of about 3.5% and the bonds can be assumed by Met. If, as and when the interest rate equal 6.0% then MWDOC is to take action to fix the loan or pay off the bonds. Mr. Payne reported that lease payments would be made monthly instead of semi-annually. Mr. Payne also reported the District will save about $20,000 per year with this alternative and the majority of AMP agencies prefer this alternative. Director Knauft arrived at 9:08 a.m. during discussion of Item 13. There was a general discussion about MWDOC's issuance costs, annual savings, that the District's guaranteed Hydraulic Grade Line is unaffected by the bond refinancing, and the Official Statement references location of the District in relation to Disneyland. President Armstrong requested a change in Resolution 92-18 to rescind the prior Resolution, or minute order, which approved District signature of the Sub-Lease agreement. On a motion by Vice President Fox, seconded by Director Scanlin, the Board of Directors voted 4-0-1, Director Korn abstained, to adopt Resolution No. 92-18 Rescinding Conflicting Resolutions, or Minute Orders, Approving an Amended and Restated Sublease with Municipal Water District of Orange County Relating to the Allen-McColloch Pipeline and Authorizing Use of Information in an Official Statement; and authorized the President and Secretary to execute the Amended and Restated Allen-McColloch Pipeline Sublease Agreement, subject to review and approval as to form by District General Counsel. Item 14. Consideration of drinking fountain at the Nixon Library. Prior to discussion, Director Knauft declared that he is on the Nixon Library Board of Directors, did not participate in further discussion and abstained from voting on this matter. William Robertson, General Manager, reported that when the Board approved a budget of $6,000 for this project, they orally requested that staff not spend the full budget. Mr. Robertson went on to report that the final Page July 9, 1992 estimate is $3,500 compared to a budget of $6,000. Mr. Robertson requested direction from the Board, and if the Board wanted to proceed then they must define the public purpose for the fountain as part of the motion. The Board discussed using District funds for activities such as community parades and other public events; costs for this fountain are higher than anticipated; funding this type of project with the possibility that property tax revenue may be taken away; lack of drinking fountains in City parks; and, possible District participation on installation of fountains in public parks and/or District facilities. The Board concluded that it was not interested in spending $3,500 for this project at this time. On a motion by President Armstrong, seconded by Director Korn, the Board of Directors voted 4-0-1, Director Knauft abstained, to not participate in installation of a drinking fountain at the Nixon Library at this time, and that the Board will instruct staff when this matter is to be considered again. President Armstrong declared a recess beginning at 9:27 a.m. The meeting reconvened at 9:33 a.m. with all directors and staff members present. DISCUSSION CALENDAR Item 15. Emergency response following the June 25, 1992 earthquakes. Mr. Robertson distributed an Earthquake Preparedness pamphlet prepared by ACWA. In addition, Mr. Robertson reported the water and sewer systems did not experience any problems resulting from the June 25, earthquakes. This item was for information only and no action was taken by the Board of Directors. Item 16. Quarterly Report to the Board of Directors on the status of Goals and Objectives as defined in the 1991-92 Five Year Plan. Mike Robinson, Assistant Administrator, conducted an audio/visual presentation on the status of projects and activities related to the Goals and Objectives as defined in the 1991-92 Five Year Plan. The Board thanked Mr. Robinson for the fine presentation. This item was for information only and no action was taken by the Board of Directors. Item 12. Consideration of Resolution adopting Policy regarding Wire Transfers. Beverly Meza, Acting Business Manager, reviewed details of the proposed policy regarding wire transfer of funds. Ms. Meza reported the District's written policy is a step forward because MWDOC and most public agencies do not have a written policy. Director Knauft expressed a concern the policy allows wire transfer for investments. Ms. Meza responded the proposed policy authorizes transfers only to institutions approved by the Board in the District's investment Resolution, and any such transfer is for the credit of the District, not an individual. There was further discussion on transfer of funds into the District, procedures for transferring funds for investments and how institutions are added to the approved investment list. The Board also discussed adding the list of approved investment institutions to the Wire Transfer Resolution. Mr. Robertson responded it is easier to administer the proposed policy if it references the latest adopted Investment Resolution instead of including the list. This avoids the process of adopting a new Wire Transfer Resolution every time a new Investment Resolution is adopted. On a motion by Director Knauft, seconded by Director Korn, the Board of Directors voted 5-0 to adopt Resolution No. 92-17 Adopting Policy Regarding the Transfer of Funds Via the Federal Wire System. Page - 6 c~ July 9, 1992 GENERAL. MANAGER'S REPORT Item 17. General Manager's oral report and comments. William Robertson, General Manager, discussed the following: 1. He will be on vacation beginning on July 17 and will return to work on August 3, 1992. 2. The District's next bus tour is scheduled for Saturday, August 15, 1992. 3. ACWA/JPIA has requested that every employee, including Directors, who drive a vehicle on District business must submit a copy of their car insurance. Mr. Robertson asked that Directors provide their copy to Mike Payne. 4. The staff has received four letters from 200% customers and each complains about the size of their lots. Following a discussion by the Board, staff was asked to implement the appeal process and use these customers to test the appeal system. Mr. Robertson reported the staff will work on appeal materials and schedule a Public Information Committee meeting to continue their review of the process. Ken Vecchiarelli departed the meeting during discussion of Item 17. GENERAL, COUNSEL'S REPORT Item 18. General Counsel's oral report and comments. Mr. Arthur G. Kidman, General Counsel, reported the Senate is working on a bill to expand LAFCO authority to initiate consolidation of special districts. Mr. Kidman reported that ACWA opposes the bill. STANDING COMMITTEE REPORTS Item 19. The Executive-Administrative-Organizational Committee did not have a meeting. Item 20. Report on Finance-Accounting Committee meeting of July 2, 1992. The Finance Committee discussed the Allen-McColloch Pipeline refinancing, Wire Transfer policy, MWDOC Standby charges and State Budget problems at the July 2, meeting. A Finance-Accounting Committee meeting was scheduled for July 16, 1992, at 9:00 a.m. at the District office. Item 21. Report on Personnel Committee meeting of June 19. The Personnel Committee discussed the status of the meet and confer process at the June 19, 1992 Committee meeting. Item 22. A Personnel Committee meeting was scheduled for July 15, 1992 at 9:00 a.m. at the District office. Item 23. Oral report Planning-Engineering-Operations Committee meeting, July 8. The Committee discussed Lead & Copper testing schedule, LPG tank at Fairmont Reservoir, Texaco Well, Etchandy Well land sale, S&S land sale, Imperial Highway pipeline project/Redevelopment Agency, Danita Lane sewer project and fountain at the Nixon Library at the July 8, 1992 meeting. Item 24. The Public Information Committee did not have a meeting. INTERGOVERNMENTAL MEETINGS Item 25. Report on MWDOC meeting, July 1. Director Knauft reported that MWD has an opinion that the water related Service Charge may not be legal, therefore, Met may drop this revenue alternative. If met drops this Charge then MWDOC's proposed Standby charge will probably not be levied Item 26. Report on WACO meeting, July 3. Director Knauft reported this meeting is scheduled for July 10, not July 3. re 3 Page 21 July 9, 1992 Item 27. Report on Yorba Linda City Council meeting, July 7. Director Knauft reported the City will receive County funding to investigate a well to serve the Park on Casa Loma. General Manager Robertson reported the District and City staffs are working on this together. Item 28. Report on MWD meeting. Director Knauft reported that MWD did not hold a meeting in the last two weeks. Item 29. Report on ACWA Personnel Committee meeting, July 7. Vice President Fox reported that ACWA discussed a Sample Handbook of Policies and decided to keep the handbook as a general guideline with being too specific, and the theme for the ACWA Fall Conference program is "How to keep morale high when money is not available". Item 30. Report on OCWD meeting July 1. Director Scanlin reported that OCWD: discussed the EPA's proposed arsenic testing regulation, opposed SB 1364, approved studies to expand Water Factory 21, approved $15,000 for a Don Owen Leadership fund at UCI, and reported the $100,000 given to the Corps of Engineers to conserve water behind Prado Dam equates to $7 per acre foot. Item 31. Director Knauft did not have any comments. Item 32. Director Korn did not have any comments. Item 33. Director Scanlin did not have any comments. Item 34. Vice President Fox reported that Senator Hill responded to his letter regarding the Governor's property tax proposal. Item 35. President Armstrong reported that the Anaheim Public Utilities Commission is considering a hook-up fee for collection of bad debts. General Counsel Kidman reported an agency can establish a hook-up fee for business customers but not for residential customers. General Manager Robertson responded that, at the present time, the District, does not have a hook-up fee for business customers. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board of Directors reviewed the Activity Calendar. BOARD OF DIRECTORS' GOALS WORKSHOP This matter was continued from the Board's meeting of June 11, 1992. All staff members departed at this point of the meeting. This item was for information only and no action was taken by the Board of Directors. ADJOURNMENT Upon a motion by Director Knauft, seconded by Director Scanlin, the Board of Directors voted 5-0, at 12:00 p.m., to adjourn to Thursday, July 23, 1992, at 8:30 a.m., at the District headauarters on Plut4osa Drive. General Manager/Secretary