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HomeMy WebLinkAbout1991-10-24 - Board of Directors Meeting MinutesPage 2 October 24, 1991 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS ADJOURNED REGULAR MEETING October 24, 1991 The Adjourned Regular Meeting of the Board of Directors of the Yorba Linda Water District was called to order by President M. Roy Knauft, Jr. at 2:02 p.m., October 24, 1991, at the District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present were Sterling Fox, Arthur C. Korn, Carl Scanlin, Vice President Paul R. Armstrong and President M. Roy Knauft, Jr. Also present were William Robertson, Secretary/General Manager; Mike McCormick, General Counsel; Ray Harsma, Operations Superintendent; Beverly Meza, Acting Business Manager; Michael Payne, Assistant General Manager; Michael Robinson, Assistant Administrator; Yury Zaslavsky, Assistant Engineering Manager; and, Barbara Bower, Secretary to the General Manager. Visitors present were Mike Harrison and Debra Hokana representing Conrad and Associates. CONSENT CALENDAR Prior to voting on the Consent Calendar the Board clarified that the costs to transfer radios, paint the service bodies and add arrow boards were included in Item No. 4 bid prices. President Knauft complimented staff on Item 5, the Treasurer's Report. There was a brief discussion comparing the amount of dues in Item No. 7 and 8. 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 - Regular meeting of October 10, 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 $1,504,536.91 Check Nos. 8956, 9078 through 9163; and Payroll Check Nos. 2146 through 2211; and two wires, one to Bank of America in the amount of $1,198,903.99 dated October 29, 1991 and one to ACWA-HPIT in the amount of $16,555.43 dated October 29, 1991. Item 4. Approval of the purchase of three 3/4 ton Cab and Chassis Maintenance Trucks from G.M.C. Truck Division in the amount of $46,846.02 and an agreement with Harbor Truck Bodies in the amount of $5,986.59. Item 5. Approval of Treasurer's Report for September 30, 1991. +6CS-s Page 2303 October 24, 1991 r Item 6. Approval of damage claim filed by Mr. Ernest Rangel in the amount of $42.80. Item 7. Approval of payment to Association of California Water Agencies for 1992 membership dues in the amount of $4,732.00. Item 8. Approval of payment to California Special Districts Association for 1992 membership dues in the amount of $1,238.00. ACTION CALENDAR At the request of President Knauft, Item No. 12 and 13 were taken out of order to accommodate representatives from Conrad and Associates. Item 12. Consideration of the Audited Financial Statements for Years ended June 30, 1991 and 1990. Beverly Meza, Acting Business Manager, introduced this subject with a review of the District's financial position for Fiscal Year 1990-91. Ms. Meza reported that each fund had a positive balance at the end of the fiscal year. Ms. Meza then turned over the presentation to Mr. Mike Harrison, representing Conrad and Associates, for his review of the Annual Audit. Mike Harrison conducted a detailed discussion of three documents submitted by Conrad and Associates: the Appropriations Limitation letter, Management letter and Audit report. In regards to the Management letter, Mr. Harrison requested Board consensus on whether or not to lock the computer room door. The Board discussed the matter and noted that, due to on-going printing operations, the staff will use their utmost discretion to maintain security in the computer room. Mr. Harrison concluded his report by noting the auditors had no exceptions to the District's financial records, the District's finances are stable even in recessionary times, and the District has done a good job of balancing expenses with revenues. Following a general discussion of the District's financial condition and audit report, and on a motion by Vice President Armstrong and seconded by Director Fox, the Board of Directors voted 5-0 to accept the Audited Financial Statements for the Years ended June 30, 1991 and 1990. Item 13. Consideration of the Financial Statements for the two months ended August 31, 1991. Beverly Meza, Acting Business Manager, reported that the financial statements for the two months ended August 31, 1991 are in the Agenda Packet. Ms. Meza reported that the District's net financial position is down $600,000 compared to the same time last year; however, interest on investments has not been accrued yet. In addition, Ms. Meza reported that due to the drought, expenses are down by approximately $100,000. On a motion by Vice President Armstrong and seconded by Director Scanlin, the Board of Directors voted 5-0 to accept the Financial Statements for the two months ended August 31, 1991. Page October 24, 1991 President Knauft declared a recess beginning at 2:35 p.m. The meeting reconvened at 2:42 p.m. with all Directors and staff present. Item 9. Consideration of Water Rates for Fiscal Year 1991-92. William Robertson, General Manager, facilitated a lengthy audio/visual report and interactive discussion with the Board of Directors regarding water rates for fiscal year 1991-92. Mr. Robertson reviewed the District's forecasted year end reserves, assumptions used to develop budget forecasts, major factors affecting this years financial condition, Board policy regarding a reserve target, methods to improve reserves and water rate alternatives. Mr. Robertson noted the District's reserves will be reduced by $435,000 without an adjustment in water rates. The major factors affecting the year-end reserves were a price increase by Metropolitan Water District of Southern California (MWD) effective on July 1, 1991 and the Orange County Water District, and reduced purchasing power of the dollar on general supplies and services. Mr. Robertson then discussed Board policy regarding a reserve target and water rates, and a report on two water rate alternatives. The first alternative retained the current rate structure and adjusted both the Commodity Charge and Base Rate by the same 6.6% amount. The second alternative adopted an entirely new rate structure which permanently implemented the water rate principles adopted in the District's Emergency Water Management Ordinance. Staff reported they needed further information before recommending the second alternative. Mr. Robertson concluded the staff report with recommendation to use Alternative No. 1, increase the water rate Commodity Charge from $0.61 per hundred cubic feet to $0.65 per hundred cubic feet and the Base Rate charge from $3.10 per meter per month to $3.30 per meter per month. Mr. Robertson turned over the presentation to President Knauft for a report on a Metropolitan Water District Joint Committee meeting where proposed imported water rate increases were discussed. President Knauft reported that MWD will not raise water rates until next fiscal year and when MWD does implement a rate increase it will probably be higher than previously anticipated. The Board then held a lengthy discussion of the target amount for reserves and water rate alternatives that will provide revenues to meet the target. Since water rates will be in affect for only six months of the fiscal year and that MWD will adjust imported water rates on July 1, 1992 at an amount higher than previously forecasted, the Board's consensus was to retain the current water rate structure as identified in Alternative No. 1 in the Water Rate Report and increase the Commodity Charge to $0.66 and the Base Rate to $3.35 per meter per month. In addition, the Board of Directors concurred with staff recommendation to eliminate the 2 inch, 3 inch and 12 inch fire detector check meters, and establish a new classification for "Landscape" water. On a motion by Page 2305 October 24, 1991 Director Fox and seconded by Director Scanlin the Board of Directors voted 5-0 to accept the Yorba Linda Water District Report for Fiscal Year 1991-92; and adopt Resolution No. 91-29 Setting Water Rates and Rescinding Resolution No. 90-33 as amended for a $0.66 Commodity Charge and $3.35 Base Rate. President Knauft declared a recess beginning at 3:40 p.m. The meeting reconvened at 3:45 p.m. with all Directors and staff present. Item 10. Consideration of a Negative Declaration for the Highland Reservoir Chlorination Facility. Yury Zaslavsky, Assistant Engineering Manager, introduced this subject with a detailed report on water quality issues in pressure zone 2 and six water treatment alternatives. Mr. Zaslavsky concluded that a chlorinator at Highland Reservoir is the most efficient method to maintain the water quality in pressure zone 2. Mr. Zaslavsky then reviewed the hazards analysis of a chlorinator at Highland Reservoir and mitigation measures identified the CEQA required Initial Study. Following a discussion of the water quality in pressure zone 2 and that the Highland site will provide consistent application of chlorine, the Board agreed that a chlorinator at Highland was the best alternative. On a motion by Director Fox seconded by Vice President Armstrong the Board of Directors voted 5-0 to adopt the Negative Declaration for the Highland Reservoir Chlorination facility; and authorize staff to file a Notice of Determination with the Orange County Clerks Office. Item 11. Consideration of Resolution authorizing and directing the condemnation of property for the Lomas De Yorba Booster Station - Continued from the Board's meeting of October 10, 1991. Yury Zaslavsky, Assistant Engineering Manager, introduced this subject with a report on the status of negotiations with the current landowner. Mr. Zaslavsky presented the following findings to the Board of Directors: 1. ASL Consulting Engineers have filed a report with the District which states that in order to provide adequate water service to Improvement District No. 2 a booster pump station is required; 2. several alternative pump station sites were reviewed and the site selected by staff is located in a manner which is most compatible with the greater public good and least private injury; 3. the site selected is necessary for the project; and, 4. by letter dated July 18, 1991, the District mailed a formal offer and a Public Agency Acquisition Agreement to the property owner. Mr. Mike McCormick, District General Counsel, gave a report on the legal requirements to adopt Resolution 91-30. Page Fr October 24, 1991 Mr. Zaslavsky reported the property owner received notice of this Board of Directors meeting and, apparently, chose to not have a representative at the meeting. President Knauft asked if any member of the public had comment or wished to speak on behalf of the property owner. There were no comments. Mr. McCormick noted the following changes to Resolution No. 91-30: remove reference to Exhibit "B" in Section 4 and 5; and add a "Fee Parcel" cover sheet to Exhibit "A". Following a general discussion on acquisition timing, and on a motion by Vice President Armstrong and seconded by Director Korn the Board of Directors voted 5-0 to adopt Resolution 91-30 Authorizing and Directing the Condemnation of Real Properties in the County of Orange, State of California, and Declaring the Public Necessity Therefore, as amended. DISCUSSION CALENDAR Item 14. Review of Association of California Water Agencies Committee/Task Force representation. Michael Robinson, Assistant Administrator, reported that the Association of California Water Agencies is in the process of accepting nominations for Committee and Task Force appointments. Mr. Robinson went on to report that currently Mr. Kidman is the District's only representative on an ACWA Committee. Mr. Robinson reported that staff is recommending that Mr. Kidman continue his representation on the District's behalf and asked if any of the Board member would like to serve on an ACWA Committee. Director Fox said he would like to be nominated for the ACWA Personnel Committee. There was no further action by the Board on this matter. GENERAL MANAGER'S REPORT Item 15. General Manager's oral report and comments. Mr. Robertson reminded Board members of the Fiesta Days parade scheduled for this coming Saturday, October 26; requested assistance for help in the Fiesta Days booth in the afternoon; reminded Board members of the Xeriscape seminar scheduled for November 2nd beginning at 1:00 p.m.; and, that he and Mike Payne attended a one day seminar on the Social Security issue. Vice President Armstrong discussed Board members belonging to PERS. Director Korn reported that Board members can belong to PERS. Staff will look into this and report back to the Board at the first meeting in November. LEGAL COUNSEL'S REPORT Item 16. Legal Counsel's oral report and comments. Mr. McCormick had no comments. STANDING COMMITTEE REPORT Item 17. No Executive-Administrative-Organizational Committee report was scheduled. Page 2307 October 24, 1991 Item 18. Report on Finance-Accounting Committee meeting of October 9. The Committee reported that the audit and water rate report were discussed at the October 9, 1991, Finance Committee meeting. Item 19. The Personnel Committee set a meeting for Tuesday, October 29, 1991, at 9:00 a.m. at the District headquarters. Item 20. No Planning-Engineering-Operations Committee report was scheduled. Item 21. No Public Information Committee meeting report was scheduled. INTERGOVERNMENTAL MEETINGS Item 22. Report on CSDA meeting, October 11. Director Korn reported there was no meeting on that day. Item 23. Report on Planning Commission meeting, October 23. Director Korn reported that nothing of interest to the District was discussed at the October 23, 1991, Planning Commission meeting. Item 24. Report on City Council meeting, October 23. Director Scanlin reported that a 100 dwelling unit project for AW Associates was approved by the City Council. Item 25. Report on OCWD meeting, October 16. Director Fox reported that recent El Nino events have produced three wet, three dry and two moderate weather conditions. In addition, the OCWD Board meetings scheduled for November 6 and 20 were canceled for a single meeting on November 13. Item 26. Report on MWDOC meeting, October 16. President Knauft reported the MWDOC meeting was a workshop on MWD water rates. BOARD MEMBER COMMENTS Item 27. Director Fox. Director Fox had no comments. Item 28. Director Korn. Director Korn had no comments. Item 29. Director Scanlin. Director Scanlin had no comments. Item 30. Vice President Armstrong. Vice President Armstrong had no comments. Item 31. President Knauft. President Knauft had no comments. BOARD OF DIRECTORS ACTIVITY CALENDAR The Board of Directors reviewed the Activity Calendar and made assignments. Page . -3" October 24, 1991 CLOSED SESSION There was no closed session. ADJOURNMENT On a motion by Director Korn and seconded by Director Fox the Board of Directors voted 5-0 at 4:37 p.m. to adjourn the meeting to Tuesday, November 12, 1991, at 8:30 a.m. at the District headquarters. William J. Ro rtson General Manager/Secretary