HomeMy WebLinkAbout1991-06-13 - Board of Directors Meeting MinutesPage . : z
June 13, 1991
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
June 13, 1991
The Regular 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., June 13, 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; Arthur
G. Kidman, District General Counsel; Michael Payne, Engineering Manager; Mike
Robinson, Assistant Administrator; and, Barbara Bower, Secretary to the General
Manager. The visitor present was Mr. Brian Johnson, representing AW Associates, who
arrived at 8:35 a. m.
CONSENT CALENDAR
Following a discussion on the District's ability to generate computer tapes for the County
Auditor as identified in Item No. 8 and Item No. 9 denial of the Pacific Bell claim, and on
a motion by Director Fox and seconded by Vice President Armstrong, the Board of
Directors voted 5-0 to approve the Consent Calendar as follows:
Item 1. Approval of Minutes - Adjourned Regular meeting of May 30, 1991.
Item 2. Authorization for the Directors to leave the State of California prior to next
meeting.
Item 3. Approval of payment of bills, payroll and refunds in the amount of $602,776.52
on Check Nos. 6945, 8060, 8160 through 8253; and Payroll Check Nos. 1277 through
1338; and one wire to MWDOC in the amount of $121,254.80 dated June 13, 1991.
Item 4. Approval of Progress Payment No. 5 to BFI Constructors, in the amount of
$308,776.00 for construction of the Elk Mountain Reservoir; and authorize staff to
deposit $1,917.00 with Escrow Agent EI Dorado Bank as a substitute for retention
earnings, Job No. 8918.
Item 5 . Approval of Terms and Conditions for Water Service with Mr. and Mrs. Osmar
Ferrari, and Mr. and Mrs. Adario Ferrari for their project located at 23700 Via Del Rio, Lot
8 of Tract No. 11662, Job No. 9119.
Item 6. Approval to release the Guarantee Bonds with Pacesetter Business Properties
in the amount of $2,500.00 for the Water Improvements for Lot No. 2 of P.M. 83-1085,
Job No. 8332.
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Item 7. Approval to release the Guarantee Bond with Maier-Hostert Properties in the
amount of $2,500.00 for the Water Improvements for Tract No. 13130, Job No. 8808.
Item 8. Approval of an agreement with BSI Consultants, Inc. for the preparation of the
Standby-Availability Assessments for Improvement District No. 2 in an amount not to
exceed $4,800.00; and for the Sewer Maintenance Assessments for the Locke Ranch
Sewer Area in an amount not to exceed $2,300.00.
Item 9. Denial of claim submitted by Pacific Bell in the amount of $3,273.34.
ACTION CALENDAR
Item 10. Consideration of the Second Amendment to the 1989 Water Service
Agreement - continued from the Board of Directors meeting of May 30, 1991. Mike
Payne, Engineering Manager, reported the staff and AW Associates have concluded
negotiations on the Second Amendment to the 1989 Water Service Agreement. Mr.
Payne reported the agreement is in accordance with the terms and conditions
established at the Board of Directors January 10, 1991 meeting. Mr. Payne then
reviewed the terms, conditions and facilities in detail, and concluded his report with
recommendation to approve the Second Amendment. Following recognition by
President Knauft, Mr. Johnson reported AW Associates concurred with the Second
Amendment and supported staff recommendation. Following a general discussion
regarding the operation of Bryant Ranch Well No. 1, when the temporary tanks will be
removed and the difference between close of escrow and occupancy, and on a motion
by Vice President Armstrong and seconded by Director Scanlin the Board of Directors
voted 5-0 to approve the Second Amendment to the 1989 Water Service Agreement;
and, authorize the President and Secretary to execute the agreement.
Item 11. Consideration of the Settlement Agreement and Release of Claims with
equinox, Inc. et al. Mike Payne, Engineering Manager, reported that equinox has
submitted an offer of $93,318.49 and agreement to settle a lawsuit filed by the District
regarding equinox's failure to provide insurance for construction of the Elk Mountain
Reservoir project. Mr. Payne reported the agreement provides for payment by equinox
and the parties agree to release each other from future claims. The settlement amount
is based upon the price difference between equinox's bid and the second low bidder,
the District's legal fees and interest earnings. The settlement amount will be allocated to
the Elk Mountain Reservoir project construction costs. On a motion by Director Fox and
Seconded by President Knauft, the Board of Directors voted 5-0 to approve the
Settlement Agreement and Release of Claims with equinox, Inc. et al.; and, authorize
the President and Secretary to execute the agreement.
Item 12. Report on the Ground Breaking Ceremony for the Camino De Bryant
Reservoir project. Mike Payne, Engineering Manager, reported the staff would like to
have an official groundbreaking ceremony to celebrate construction of the Camino De
Bryant Reservoir. Mr. Payne reported that historically this type of activity is done in the
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June 13, 1991
afternoon and late in the work week, however, since this ceremony will take place in
July, the Board may want to consider another time. Following a general discussion on
the matter the Board selected a groundbreaking ceremony to be held on Friday, July 19,
1991 at 2:00 p.m.
Item 13. Consideration of support for continuation of pass-through bank deposit
insurance on Deferred Compensation Plan assets. Cheryl Gunderson, Business
Manager, reported the United States Congress was considering legislation to reinstate
insurance of deposits on Deferred Compensation Plans. Ms. Gunderson also reported
this insurance is of the utmost importance as it will provide $100,000 of insurance for
each Deferred Compensation Plan participant instead of the current limit of $100,000 for
the District's entire portfolio. Ms. Gunderson concluded her report with a
recommendation for approval to mail a letter in support of the proposed amendment to
each of the District's congressional delegates.
Prior to discussing this matter, Director Korn requested a ruling from general counsel as
to whether it was a conflict of interest for a Director to discuss this matter when they were
a member of the Deferred Compensation Plan. Mr. Arthur Kidman, District general
counsel, rendered an opinion that it was not a conflict of interest for Board members to
discuss matters under consideration by the United State Congress. The Board of
Directors concurred that support of H.R. 2298 will protect the District's Deferred
Compensation Plan assets. On a motion by Director Korn and seconded by Vice
President Armstrong, the Board of Directors voted 5-0 to support continuation of
pass-through bank deposit insurance on Deferred Compensation Plan assets; and,
authorize the President to send letters to the District's Congressional delegates on this
matter.
DISCUSSION CALENDAR
Item 14. Distribution of a Draft of the District's 1991-92 Annual Budget. William
Robertson, General Manager, distributed a draft of the 1991-92 Annual Budget. Mr.
Robertson reported the final Budget report will be presented for consideration at the
Board of Directors June 27, 1991 meeting. This item was for information only and no
action was taken.
GENERAL MANAGER'S REPORT
Item 15. General Manager's oral report and comments. Mr. Robertson reported this
year's MWDOC School Program included a poster contest. Mr. Robertson then turned
the presentation over to Mike Robinson, Assistant Administrator, for a review the posters
received by the District. In addition, Mr. Robertson reported that Mr. Dave Larsen,
District Labor Counsel, will arrive at approximately 9:30 a.m. for a status report on the
Meet and Confer process.
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June 13, 1991
LEGAL COUNSEL'S REPORT
Item 16. Mr. Arthur G. Kidman, District General Counsel, commented that the
California Legislature is continuing to work on ways to balance the State budget on the
back of utilities. Mr. Kidman then reviewed some of the current legislation pending in
Sacramento. In addition, Mr. Kidman reviewed with the Board his recent letter regarding
the EPA's new Lead regulations.
STANDING COMMITTEE REPORT
Item 17. There was no Executive-Administrative-Organizational Committee meeting
report.
Item 18. Report on the Finance-Accounting Committee meeting of June 6, 1991. The
Committee reported the Draft 1991-92 Annual Budget was reviewed at the June 6, 1991
Committee meeting.
Item 19. A Finance-Accounting Committee meeting was scheduled for Thursday, June
20, 1991, at 2:00 p.m.
Item 20. No Personnel Committee meeting report was scheduled.
Item 21. Report on Planning-Engineering-Operations Committee meeting of May 29,
1991. The Committee reported the Five Year Plan, 1989 Water Service Agreement
Amendment No. 2, Palm Avenue Sewer Project, Well No. 10 and Bryant Ranch Irrigation
Well rehabilitation projects, Highland Reservoir Master Plan, City Sewer Maintenance,
Brighton Pre-Annexation Agreement Amendment No. 1 and Sewer Drainage Report
were discussed at the May 29, 1991 Committee meeting.
Item 22. Oral report on the Public Information Committee meeting of June 11, 1991.
The Committee reported the June 11, meeting was deferred until Friday, June 14, 1991.
INTERGOVERNMENTAL MEETINGS
Item 23. Report on City Council meeting, June 4. President Knauft reported he did not
attend the June 4, City Council meeting.
Item 24. Report on MWDOC meeting, June 5. President Knauft reported that nothing
of interest to the District was discussed at the June 5, 1991 MWDOC meeting.
Item 25. Report on WACO meeting, June 7. President Knauft reported that Joan Irvine
Smith's new water resources fund was the major topic of discussion at the June 7, 1991
WACO meeting.
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June 13, 1991
Item 26. Report on OCWD meeting, June 5. Director Fox reported he will substitute
the June 5 meeting for the Joint OCWD/MWDOC meeting scheduled for June 17, 1991
at 7:30 a. m.
Item 27. Report on Planning Commission meeting, June 12. Director Scanlin
attended and reported that nothing of interest to the District was discussed at the June
12, 1991 Planning Commission meeting.
BOARD MEMBER COMMENTS
Item 28. Director Fox. Director Fox reported his wife is recovering well from her recent
hip surgery; distributed a Time Magazine article on the environment to each Director
and staff present; and, gave to Mike Robinson some resource materials on Xeriscape
activities.
Item 29. Director Korn. Director Korn commented on a recent PBS television special
on recovery of the environment surrounding Mt. Saint Helens in Washington State.
Mr. Dave Larsen, District Labor Counsel, arrived at 9:20 a.m. during discussion of Item
No. 29.
Item 30. Director Scanlin. Director Scanlin had no comments.
CLOSED SESSION
In order to accommodate Mr. Larsen's schedule, President Knauft requested the Board
of Directors take Agenda Item No. 33 and 34 out of order. On a motion by Director Fox
and seconded by Director Korn, the Board of Directors voted 5-0, at 9:28 a.m., to take a
five minute recess and then go into closed session to discuss the following items:
Item 33. Status of Meet and Confer.
Item 34. Potlatch Claim.
On a motion by Director Korn and seconded by Director Fox, the Board of Directors
voted 5-0 to come out of closed session at 10:15 a.m. No action was taken by the Board
of Directors during closed session.
Item 31. Vice President Armstrong. Vice President Armstrong commented on the
water testing at the Placentia Linda Hospital; water conservation video made for
children that was given to Mike Robinson; and, requested that staff look into the
possibility of prepaying multiple water bills at one time. i
Item 32. President Knauft. President Knauft had no comments.
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June 13, 1991
BOARD OF DIRECTORS ACTIVITY CALENDAR
The Board of Directors reviewed the activity calendar and made assignments through
the end of July.
ADJOURNMENT
On a motion by Director Fox and seconded by Director Scanlin the Board of Directors
voted 5-0 at 10:25 a.m. to adjourn to the next regular meeting which is scheduled for
Thursday, June 27, 1991 at 8:30 a.m. at the District Boardroom.
Wiliam J. Robertson
General Manager/Secretary