HomeMy WebLinkAbout1991-05-16 - Board of Directors Meeting MinutesPage
May 16, 1991
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS ADJOURNED MEETING
May 16, 1991
The Adjourned Meeting of the Board of Directors of the Yorba Linda Water District was
called to order by President M. Roy Knauft, Jr. at 8:30 a.m., May 16, 1991, at the District
Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present were Sterling L.
Fox, Arthur C. Korn, Carl T. Scanlin, Vice President Paul R. Armstrong and President M.
Roy .Knauft, Jr. Also present were William Robertson, Secretary/General Manager;
Cheryl Gunderson, Business Manager; Ray Harsma, Operations Superintendent;
Michael Payne, Engineering Manager; Mike Robinson, Assistant Administrator; and,
Barbara Bower, Secretary to the General Manager.
INTRODUCTION OF VISITORS AND PUBLIC PARTICIPATION
Item 1. Introduction of new employee Pati Campitelli, Customer Service Clerk I. Ms.
Cheryl Gunderson, Business Manager introduced Ms. Pati Campitelli to the Board of
Directors.
CONSENT CALENDAR
Prior to voting on the Consent Calendar, Director Armstrong noted that Item No. 2 in the
Draft Minutes were incorrect and that he is associated with American Golf Corporation
not a Director in that Corporation. On a motion by Director Fox and seconded by
Director Scanlin, the Board of Directors voted 5-0 to approve the Consent Calendar as
follows:
Item 2. Approval of Minutes - Regular meeting of April 25, 1991 as amended.
Item 3. Authorization for the Directors to leave the State of California prior to next
meeting.
Item 4. Approval of payment of bills, payroll and refunds in the amount of
$2,038,474.85 on Check Nos. 6927, 6928, 7694 through 7699, 7871, 7955 through
8059; and Payroll Check Nos. 1074 through 1138, 1148 through 1207; and one wire to
Bank of America the amount of $1,296,798.75 dated April 29, 1991.
Item 5. Approval to release the Guarantee Bonds with M.J. Brock, totalling $16,500.00
for the Water Improvements for their Tracts Nos. 10455, 11366, 11367, 11848 and
12850.
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Item 6 . Approval of P.-ogress Payment No. 4 to BFI Constructors in the amount of
$385,818.00 for the construction of the Elk Mountain Reservoir Project, Job. No. 8918;
and authorize the staff to deposit $75,260.00 with Escrow Agent El Dorado Bank as a
substitute for retention earnings.
Item 7. Approval of the Terms and Conditions for Water Service with Mitsubishi Motor
Sales of America for their project located at 22744 Eastpark Drive, P.M. 84-1081, Job
No. 9113.
Item 8. Approval to release the Guarantee Bond with Marquand Development in the
amount of $2,000.00 for the Water Improvements for Lot #5 of Tract No. 12166.
Item 9. Approval to release the Cash Bond with Parr-Bohn Properties LTD. II in the
amount of $2,000.00 for the Water Improvements for Lot #7, Tract No. 12166.
Item 10. Approval of payment to Lyon Warmington, Associates in the amount of
$79,446.87 for the reimbursement of the Chino Hills Transmission Pipeline; and
approve the retention payment in the amount of $8,827.43, once the Notice of
Completion has been recorded, and no liens have been filed for Tract No. 10731, Job
No. 8839.
Item 11. Approval of the Terms and Conditions for Water Service with Seven Fortune
Enterprises for their project located at the southeast corner of Old Canal Road and
Oakcrest Circle, Parcel Map 87-119, Job No. 9114.
Item 12. Approval of payments to Upper IC-Shapell Joint Venture for reimbursement of
the construction cost of water transmission facilities in Fairmont Boulevard and Village
Center Drive, for Tract No. 10606 in the amount of $71,535.00 and Tract No. 12650 in
the amount of $17,000.00.
Item 13. Approval of the Terms and Conditions for Water Service with the City of Yorba
Linda for the Yorba Linda Public Library, located at 18262 Lemon Drive, Job. 9032.
Item 14. Consideration of destruction of paid vendor invoices and purchase orders for
the years 1981 - 1986.
ACTION CALENDAR
Item 15. Consideration of proposed amendment to the District's Purchasing Policy.
Mike Payne, Engineering Manager, reported that supplies and services used by the
District are purchased in accordance with the current policy adopted in 1988 by
Resolution No. 88-12. The current policy for capital projects requires a minimum of two
written quotes for projects in the $10,000 to $25,000 range and formal competitive bid
procedures for projects in excess of $25,000. Mr. Payne reported that inflation has
driven up the cost so that most projects now require the formal bidding procedures,
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May 16, 1991
which increases staff costs to prepare, evaluate and award bids for small projects. Mr.
Payne concluded with a recommendation to modify Resolution No. 88-12 so that
projects in the $10,000 to $50,000 range require three written quotes and projects in
excess of $50,000 require formal competitive bid procedures. President Knauft reported
this matter was reviewed by the Finance Committee and Director Korn reported that no
other changes in Resolution No. 88-12 are being proposed. Following a general
discussion of proposed modification and clarification that Resolution No. 88-12 is being
rescinded, and on a motion by Vice President Armstrong and seconded by Director Korn
the Board of Directors voted 5-0 to adopt Resolution 91-13 amending the District's
Purchasing Policy and Rescinding Resolution No. 88-12.
Item 16. Consideration of providing debit and credit card payment options to the
District's customers. Cheryl Gunderson, Business Manager, reported the staff has
reviewed alternative methods to pay water bills and construction deposits through the
use of credit/debit cards. Ms. Gunderson explained the differences between credit/debit
cards and how the funds are transferred between customer accounts and the District's
account. Ms. Gunderson reported the benefits of low cost, reduced number of Not
Sufficient Funds checks and enhanced service to customers outweigh the equipment
cost and 2% charge for using credit cards. Lastly, Ms. Gunderson reported the use of
credit cards complies with recent State legislation requiring the District to extend credit
to customers who request it and meets an objective defined in the previous Five Year
Plans accepted by the Board of Directors.
The Board of Directors held a lengthy discussion on the mechanics of transactions using
both credit and debit cards, using signed receipts, proposed equipment required to
complete the service, whether the service provided was worth the cost, how the service
is financed and the general philosophy of using a credit card to pay for utility bills. Given
the Board of Directors concern over the proposed service, staff was instructed to provide
a progress report back to the Board in nine months. On a motion by Director Fox and
Seconded by Vice President Armstrong the Board of Directors voted 3-0, with Director
Korn voting no and President Knauft abstaining, to authorize the debit and credit card
payment options for the District's customers, authorize the expenditure of $1,500.00 to
implement the program and the staff is to report back to the Board of Directors on the
effectiveness of this program in nine months.
President Knauft declared a ten minute recess beginning at 9:30 a.m.
Item 17. Report on the Financial Statements for the nine months ended March 31,
1991. Cheryl Gunderson, Business Manager, reviewed the financial statements with the
Board of Directors. Following a discussion on the revenues, expenses, and Sewer
Operating Fund interest and interest allocations, and on a motion by Director Fox and
Seconded by Director Korn, the Board of Directors voted 5-0 to approve the Financial
Statements for the nine months ended March 31, 1991.
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DISCUSSION CALENDAR
Item 18. Report on combining the District's Sewer Drainage Areas. Mike Payne,
Engineering Manager, presented an audio/visual report on the history of the District's
Sewer Drainage Areas. Following a lengthy exchange of ideas between the staff and
Board of Directors on how and why the drainage areas were formed and the general
philosophical idea of the fee structure, a proposal to combine the current eight drainage
areas into two drainage areas was referred to the Planning-Engineering-Operations
Committee for further study. This item was for Information only and no Board action was
required.
GENERAL. MANAGER'S REPORT
Item 19. General Manager's oral report and comments. Mr. Robertson reported the
District's water quality samples for the month of April were satisfactory, water production
for April 1991 was 24% below April 1990, the May 1991 imported water target amount
is 778 acre feet, Yorba Linda Water District night at Angel stadium is scheduled for
Friday, June 28, 1991 and the cost is $3.50 per person, and distributed a draft copy of
the 1991 Five Year Plan.
LEGAL COUNSEL'S REPORT
Item 20. Legal Counsel's oral report and comments. Mr. Arthur G. Kidman reported
the recent Department of Fish and Game fee to review environmental reports is only the
beginning of other fees proposed by various State agencies. Mr. Kidman continued that
due to the budget crisis the Department of Water Resources and other State agencies
are now considering fees for services that were previously funded by general fund
taxes. Mr. Kidman will keep the Board apprised of this matter.
STANDING COMMITTEE REPORT
Executive-Administrative-Organizational Committee (Knauft/Armstrong)
Item 21. There was no Executive-Administrative-Organizational Committee meeting
report.
Item 22. There was no Finance-Accounting Committee meeting report.
Item 23. Report on Personnel Committee meeting of May 2, 1991. The Committee
reported that the employee survey, meet and confer process, salary survey and
Assistant General Manager recruitment were discussed at the May 2, 1991 Committee
meeting.
The Personnel Committee scheduled a meeting for Monday, May 20, 1991 at 2:00 p.m.
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May 16, 1991
Item 24. Oral report on Planning-Engineering-Operations Committee meeting of May
14, 1991. The Committee reported that the Zone 4 Booster Station Land Acquisition,
Sewer Drainage Area report and Five Year Plan were discussed at the May 14, 1991
Committee meeting.
The Planning-Engineering-Operations Committee scheduled a meeting for Friday, May
24, 1991 at 2:30 p.m.
Item 25. There was no Public Information Committee meeting report.
INTERGOVERNMENTAL MEETINGS
item 26. Report on MWDOC meeting, May 1. President Knauft reported that nothing of
interest to the District was discussed at the May 1, 1991 MWDOC meeting.
Item 27. Report on WACO meeting, May 3. President Knauft reported the County of
Orange may consider their own water conservation plan.
Item 28. Report on MWDOC meeting, May 15. President Knauft reported that
MWDOC is considering policy that will affect local agencies who shift water use from
imported supply to local well supply without achieving overall water conservation within
their service area. President Knauft, and other Board members, expressed concern the
policy will penalize agencies who developed local well water and requested that staff
monitor this matter.
Item 29. Report on OCWD meeting, May 1. Director Fox reported on the water
exchanges with Western Municipal Water District.
Item 30. Report on OCWD meeting, May 15. Director Fox reported the May 15th
meeting was rescheduled to May 22, 1991.
Item 31. Report on City Council meeting, May 7. Director Korn reported that the
Smith's Food King and scheduling a budget workshop were discussed at the May 7,
City Council meeting.
Item 32. Report on CSDA meeting, May 10. Director Korn reported the May 10, 1991
CSDA meeting was canceled, and that a Program CSDA meeting is scheduled for
Friday, May 17, 1991.
Item 33. Report on Planning Commission meeting, May 15. Director Korn reported.
Item 34. Report ACWA Spring Conference, May 8 -10. Director's Armstrong, Fox and
Scanlin reported on the ACWA Spring Conference.
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May 16, 1991
BOARD MEMBER COMMENTS
Item 35. Director Fox. Director Fox had no comments.
Item 36. Director Korn. Director Korn had no comments.
Item 37. Director Scanlin. Director Scanlin had no comments.
Item 38. Vice President Armstrong. Vice President Armstrong had no comments.
Item 39. President Knauft. President Knauft had no comments.
BOARD OF DIRECTORS ACTIVITY CALENDAR
The Board reviewed the activity calendar and made assignments.
CLOSED SESSION
On a motion by Director Korn and seconded by Vice President Armstrong the Board of
Directors voted 5-0 to go into closed session at 12:03 p.m. to discuss:
Item 40. Status report on the Lomas De Yorba Booster Station Land Acquisition.
Director Fox left the meeting at 12:25 p.m.
Item 41. Status on the Meet and Confer Process.
On a motion by President Knauft and seconded by Vice President Armstrong the Board
of Directors voted 4-0 to come out of closed session at 12:40 p.m. On a motion by Vice
President Armstrong and seconded by Director Scanlin the Board of Directors voted 4-0
to authorize staff to submit a last, best and final written offer to purchase the Lomas De
Yorba Booster Station Property in an amount supported by a report from the District°s
appraiser.
ADJOURNMENT
On a motion by Vice President Armstrong and seconded by Director Korn the Board of
Directors voted 4-0 at 12:45 to adjourn to the next regular meeting which is scheduled
for Thursday, May 23, 1991 at 8:30 a.m. at the District Boardroom.
WiIfiam J. Robertson
General Manager/Secretary