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HomeMy WebLinkAbout1992-10-22 - Board of Directors Meeting MinutesPage October 22, 1992 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING October 22, 1992 The October 22, 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 Roy Knauft, Jr Arthur C. Korn Carl T. Scanlin Staff present: William Robertson, Secretary/General Manager Barbara Bower, Secretary to the General Manager Charles Gray, Engineering Manager Ray Harsma, Operations Superintendent Michael Payne, Assistant General Manager Beverly Meza, Business Manager Michael Robinson, Assistant Administrator Directors absent at Roll Call: None Visitors Present: Mr. Michael Beverage, Board Member Can didate; Mr. Phili p Paxton, Board Member Candidate; Mr. Nick Siokos, Board Member Candidate; and Mr. Nitin Patel, representing Diehl, Evans and Company. CONSENT CALENDAR On a motion by Director Knauft, seconded by Vice President Fox, the Board of Directors voted 5-0 to approve Consent Calendar as follows: Item 1. Minutes of the Regular meeting of October 8, 1992, as corrected Item 2. Authorization for the Directors to leave the State of California prior to next meeting. Item 3. Payment of bills, payroll and refunds in the amount of $1,088,651.10 on Check Nos. 11988, 11989, 11993, 11995, 11996, 12077, 12168 through 12249; and Payroll check Nos. 4087 through 4171; and two wires, one to Bank of America in the amount of $723,111.25 dated October 28, 1992, and one to ACWA-HPIT in the amount of $17,092.18 dated October 29, 1992. Item 4. Approval of Progress Payment No. 15 in the amount of $111,384.00 and Change Order no. 12 to SSC Construction, Incorporated for construction of the Camino De Bryant Reservoir, Job No. 8935. Item 5. Approval of Progress Payment No. 1 to Taymech Corporation in the amount of $26,708.17 for construction of the Lomas De Yorba Booster Station, Job No. 8933. Item 6. Approval to release the Guarantee or Cash Bonds with the Developers for Tract Numbers: 11709, Zone 6 West pipeline and the sewer facilities installed at 4051 Second Street. Item 7. Deny claim filed by Daniel Wilson in the amount of $30.00. 'N- --I I Page 141 October 22, 1992 ACTION CALENDAR Item 8. Consideration to adjust water rates for fiscal year 1992-93. William Robertson, General Manager, reported the Water Operating Fund Reserve will be reduced by $1.1 million, from a positive $945,000 to ($152,000), due to increased operating costs imposed by Metropolitan Water District, Orange County Water District, energy to pump water and the shift of property tax revenue away from the District to local schools. Mr. Robertson stated the staff's Water Rate Report for Fiscal Year 1992-93 evaluated all possible alternatives to improve the Water Operating Fund Reserve. Mr. Robertson concluded that the option of reducing costs where possible and practical, increasing user charges by 15%, and drawing down reserves is a balanced response to offset the cost increases imposed by others and loss of revenue taken by the State. Mike Payne, Assistant General Manager, then conducted a brief audio/visual presentation on the purpose of private fire meters, how they are designed and where they are used in the District. Director Kom opened Board discussion with a comment that the staff report did not include a recommendation for stronger opposition to the increases imposed by Metropolitan Water District and Orange County Water District. Director Kom continued that the District needs more effort to get the message to suppliers that their cost increases cannot continue during a recession; urged the staff and Board to be more pro-active to protect the District's water rate structure; and if we continue to be silent then suppliers will continue to raise prices. The Board requested that staff work with the Finance Committee to develop a plan to influence MWD and OCWD. Vice President Fox noted that the District's rates were still low compared to other agencies in the County. President Armstrong requested that the second part of the fourth Whereas of Resolution 92-23 be changed from "...and improve the fiscal health of the Water Operating Fund" to "...and provide a 20 percent to 25 percent reserve to the Water Operating Fund." Director Korn asked if any members of the audience had comments on the report. Mr. Beverage concurred with the language change proposed by President Armstrong. Mr. Paxton asked how much additional revenue would be generated by the increased charges to the Private Fire Service Customers. Mr. Robertson responded the proposed charges increase Private Fire Service revenue from about $38,000 per year to about $69,000 per year, which, by itself is not enough to improve the year fund balance to 21 percent On a motion by Director Knauft, seconded by Vice President Fox, the Board of Directors voted 4-1, with Director Korn voting No, to accept the Water Rate Report for Fiscal year 1992-93; and, adopt Resolution No. 92-23 Setting Water Rates for Fiscal Year 1992-93 and Rescinding Resolution No. 91-29. Mr. Robertson reported the tape recorder stopped working. Item 9. Consideration of Petition to form Sewer Assessment District No. 91-01. Charles Gray, Engineering Manager, reviewed four options regarding formation of Sewer Assessment District No. 91-01. The options were delaying the Assessment District, proceeding with the petition, reconfiguring the Assessment District boundary and District participation in construction of a portion of the sewer pipeline. The Board discussed each option and concluded that Option No. 2, proceeding forward with the Petition based on an Assessment District boundary that included all property owners, as the best option. On a motion by Director Knauft, seconded by Director Scanlin, the Board of Directors voted 5-0 to authorize staff to prepare and distribute a Petition to Form Assessment District No. 91-01 based on Option No. 2. Item 10. Consideration to accept the Audited Financial Statements for the Year ended June 30, 1992. Beverly Meza, Acting Business Manager, introduced W. Nitin Patel who made a report on the June 30, 1992, Audit. W. Patel reported the Audit was prepared in accordance with Page October 22, 1992 Generally Accepted Accounting Practices and no exceptions were found in the District's books or management procedures. Mr. Patel then reviewed several financial details in the Audit report Director Knauft commented that a person signed the Audit Report transmittal letter instead of someone signing it on behalf of the firm. Director Knauft asked about the 9.0% interest rate on Improvement District No. 2 General Obligation Bonds due on May 1, 2001. Mr. Patel and Ms. Meza reported this percentage rate was printed in the Bond sale's Official Statement, but that Ms. Meza was researching it and will report back to the Board. The Board thanked Mr, Patel; Diehl, Evans and Company; and Beverly Meza for their work. On a motion by Director Knauft, seconded by Director Korn, the Board of Directors voted 5-0 to accept the Audited Financial Statements for the Year ended June 30, 1992. Item 11. Consideration to accept the Financial Statements for the two months ended August 31, 1992. Beverly Meza, Acting Business Manager, reported that on October 8, 1992, she submitted a Draft of the August 31, Financial Statements. The financial statements in this Agenda are the same as presented on October 8, and no changes were necessary. Ms. Meza then reviewed there is a loss in the Water and Sewer Operating Fund, but that is normal for this time of year. The Board thanked Ms. Meza for the report. On a motion by Director Knauft, seconded by Director Kom, the Board of Directors voted 5-0 to accept the Financial Statements for the two months ended August 31, 1992. DISCUSSION CALENDAR Item 12. Quarterly Report to the Board of Directors on the status of District projects. Mike Robinson, Assistant Administrator, conducted an audio/visual presentation on the status of projects and activities related to the Goals and Objectives identified in the 1992-93 Five Year Plan. The Board thanked Mn Robinson for the fine presentation. This item was for information only and no action was taken by the Board of Directors. GENERAL MANAGER'S REPORT Item 13. General Manager's oral report and comments. William Robertson, General Manager, discussed the following: 1. Participation at the Fiesta Days activities. 2. The Annual Report is at the printer and will be delivered before the Fiesta Days event. 3. Beverly Meza was promoted to Business Manager. 4. Beverly Meza reported the public likes the new water bill format and an average of six customers per day are now using credit cards to pay their bill. 5. The District passed the initial phase of Lead and Copper testing and discussed the EPA press release that listed agencies who did not pass the initial phase. STANDING COMMITTEE. REPORTS Item 14. No Executive-Administrative-Organizational Committee was held. Item 15. A Finance-Accounting Committee meeting was held on October 15, 1992. The Committee discussed the June 30, 1992, Audit and Water Rate Report Item 16. A Personnel Committee meeting was held on October 5, at 9:00 a.m. The Committee discussed risk management issues, reviewed a draft of Sections 1 through 3 of the revised personnel rules, discussed recruitments and the General Manager's evaluation. Item 17. A Personnel Committee meeting was held on October 20, at 2:00 p.m. The Committee reviewed a draft of Sections 4 through 7 of the revised personnel rules, discussed recruitments and the General Manager's evaluation. Page 2423 October 22, 1992 A Personnel Committee meeting was scheduled for Monday, November 2, 1992, at 9:00 a.m. Item 18. A Planning-Engineering-Operations Committee meeting was scheduled for November 5, 1992, at 2:00 p.m. Item 19. No Public Information Committee meeting was held. INTERGOVERNMENTAL MEETINGS Item 20. Report on WACO meeting, October 9. Director Knauft reported that storage on the State Water Project is 57% of average, the Central Valley Project is 68% of average and the Colorado River system is 70% of average. Due to the concern over storage on the State Water Project system, Metropolitan may have to return to their IICP program next year. Item 21. Report on MWDOC meeting, October 21. Director Knauft reported that the local groundwater basin is in good shape and ready to meet demands in the event of a drought this year. Item 22. Report on MWD meeting. Director Knauft reported that Mike Gage was elected as Chairman of the Metropolitan Water District Board of Directors. Item 23. Report on CSDA meeting, October 9. Director Kom reported the meeting was a two day Board member retreat to discuss CSDA's long term goals and objectives. The Board is split on focusing on service to members or legislative advocacy. Item 24. Report on OCWD meeting, October 14. Director Scanlin reported that OCWD borrowed money to pay their ACWA insurance premiums and OCWD is not filling vacant positions to reduce costs. Item 25. Report on Yorba Linda Planning Commission meeting, October 14. President Armstrong attended and reported that nothing of interest to the District was discussed. Item 26. Report on Yorba Linda City Council meeting, October 20. Vice President Fox reported the Council held a lengthy hearing on the Girl Scout house, presented a plaque to Senator Frank Hill and that City sales taxes are up 39% over last year. BOARD MEMBER COMMENTS Item 27. Director Knauft attended a meeting chaired by Senator Frank Hill. Item 28. Director Korn did not have any comments. Item 29. Director Scanlin reported on the water program televised on channel KOCE. President Armstrong noted he attended the taping of the show and received a copy of the show which in now in the District's library. Item 30. Vice President Fox reported he will not be able to attend the ISDOC dinner and that Director Scanlin will replace him. Secondly, he has a conflict during the morning of November 12, therefore, could the Board meeting begin later than 8:30 a.m. Following a general discussion, the Board choose to begin the November 12 meeting at 10:00 a.m. instead of 8:30 a.m. Item 31. President Armstrong did not have any comments. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board of Directors reviewed the Activity Calendar. Page NWA October 22, 1992 CLOSED SESSION President Armstrong directed the Board of Directors into Closed Session at 9:57 a.m. to discuss Item 32. All members of public and the staff were excused for the Closed Session. Item 32. General Manager's Evaluation. Mr. Robertson joined the Closed Session at 10:25 a.m. On a motion by Vice President Fox, seconded by Director Scanlin, the Board of Directors voted 5-0 to come out of Closed Session at 10:36 a.m. On a motion by President Armstrong, seconded by Vice President Fox, the Board of Directors voted 5-0 to adjust the General Manager's salary by about 2% to $85,500 per year effective on January 1, 1993; and, instructed the General Manager to develop a policy for reimbursement of dues and meals for staff participation in community service clubs. ADJOURNMENT On a motion by Director Kom, seconded by President Armstrong, the Board of Directors voted 5-0, at 10:38 a.m., to adjourn to Thursday, November 12, 1992, at 8:30 a.m., at the District headquarters on Plumosa Drive. The Secretary was instructed to post a Notice that the Board anticipates that a quorum will not be present at 8:30 a.m. on November 12, so the meeting will begin at 10:00 a.m., instead of 8:30 a.m., on November 12. i am J. obertso General Manager/Secretary