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June 28, 1990
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
June 28,1990
The regular meeting of the Board of Directors of the Yorba Linda Water District was
called to order by Arthur C. Korn, President, at 8:31 a.m., at the District Headquarters,
4622 Plumosa Drive, Yorba Linda. Directors present were: Paul Armstrong, Arthur Korn,
Whit Cromwell, Roy Knauft and Sterling Fox. Also present were William Workman,
General Manager; William Robertson, Assistant General Manager; Mike Payne,
Engineering Manager; Cheryl Gunderson, Business Manager; Mike Robinson, Assistant
Administrator; Ray Harsma, Operations Superintendent; Barbara Bower, Secretary;
Katie McCarthy, Customer Service Clerk; Sherry Reves, Customer Service Clerk;
Dennis Heare, Plant Operator; Dave Larsen, Rutan and Tucker; Brian Johnson,
representing A.W. Associates; and Sinan Shabandar.
INTRODUCTION OF VISITORS AND PUBLIC PARTICIPATION
William Workman, General Manager introduced to the Board new staff members Katie
McCarthy, Customer Service Clerk III and Dennis Heare, Plant Operator I. In addition,
Mr. Workman introduced Sherry Reves and announced that she was promoted to
Customer Service Clerk II from Customer Service Clerk I.
Item 1. Correspondence from Mr. Sinan Shabandar, 19921 Crestknoll Drive,
regarding the District's Charges and Policies for Discontinuance of Water Service. Mr.
Shabandar requested that the Board reconsider the District's $10 Door Tag Fee
claiming it is administered in a harsh and severe manner. The Board discussed at
length the District's present Door Tag policy and its purpose. Following the discussion
the Board thanked Mr. Shabandar for taking time from his schedule to address a matter
of concern to him. On a motion by Director Cromwell and seconded by Director Knauft
the Board of Directors voted 5-0 to reaffirm the District's present Door Tag Policy and
$10.00 Door Tag Fee without any changes.
CONSENT CALENDAR
On a motion by Director Armstrong and seconded by Director Fox, the Board of Directors
voted 5-0 to approve the Consent Calendar as follows:
Item 2. Approval of Minutes - Adjourned meeting of June 8, 1990, with the correction
that President Korn was not present at this meeting; Regular meeting of June 14, 1990;
and, Adjourned meeting of June 18, 1990.
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Item 3. Authorization for the Director to leave the State of California prior to next
meeting.
Item 4. Approval of Agreement with McCormick, Kidman & Behrens for General
Counsel services and authorization for the President and Secretary to execute.
Item 5. Approval of Agreement with Rutan and Tucker for special legal services and
authorization for the President and Secretary to execute. President Korn noted for the
record that Rutan and Tucker are also legal counsel for the City of Yorba Linda, and
there is no conflict of interest regarding the special services provided to the District by
the firm.
Item 6. Approval of Special District Secretary's Transmittal of Election to the County of
Orange.
Item 7. Approval of agreement with ASL Consulting Engineers in the amount not to
exceed $6,500.00 for the preparation of the annual standby/availability assessments for
Improvement District No. 2 and for the Sewer Maintenance Assessments for the Locke
Ranch Area.
Item 8. Approval of the Terms and Conditions for Water and Sewer Service with
Edward W. Moore for their project located at the northeast corner of Ohio Street *and
Mountain View Avenue, Parcel Map No. 82-1082, Job No. 9026.
Item 9. Approval of Terms and Conditions for Water Service with Messiah Lutheran
Church for their project located at 4861 Liverpool Street, Job No. 9024.
DISCUSSION CALENDAR
Item 10. Consideration of Compensation Adjustments for the District's Unit Employees
and Management-Supervisory-Confidential Employees. Mike Robinson, Assistant
Administrator, reviewed the Memorandum of Understanding with Teamsters, and
Management, Supervisory and Confidential employees compensation letter with the
Board. Mr. Robinson reported that the cost of living adjustments were within the
guidelines established by the Board earlier this year. The Board requested
modifications to each Resolution to reference Exhibits "A" and "B", and Mr. Robinson
noted that the Resolution numbers were changed to 90-14 and 90-15 instead of 90-15
and 90-16. On a motion by Director Cromwell and seconded by Director Fox, the Board
voted 5-0 to adopt Resolution 90-14 adopting the 1990-91 Memorandum of
Understanding with the Teamsters, and Resolution No. 90-15 adopting the 1990-91
compensation letter with the Management, Supervisory and Confidential Employees.
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June 28, 1990
Item 11. Consideration of a request from The Pacific Company (A.W. Associates) for an
amendment to the 1989 Water Service Agreement. Mike Payne, Engineering Manager,
reviewed a request by The Pacific Company for a new amendment to the 1989 Water
Service Agreement. Mr. Payne reported that the District staff and A.W. Associates have
been working for more than eight months on an amendment, that terms for the
amendment were agreed upon, and approval was scheduled for this meeting.
However, A.W. Associates has submitted a request for additional changes. Mr. Payne
indicated staff's concerns with the request that it would allow even more homes to be
framed using more temporary facilities. Mr. Workman reported that the staff did not want
to discuss further changes until the current amendment is acted upon by the District and
A.W. Associates. Mr. Brian Johnson, representing A.W. Associates addressed the Board
with an appeal for consideration of the request now so as to incorporate it into the
amendment about to be signed. A lengthy discussion between members of the Board,
Mr. Johnson and staff took place regarding A.W. Associates' request and staff position.
On a motion by Director Fox and seconded by Director Armstrong, the Board voted 5-0
to refer A.W. Associates' latest request to the staff for discussion after the current
amendment is acted upon.
Item 12. Consideration of participation in the California Arbitrage Management
Program and investment of the Improvement District No. 2 Series "C" Bond proceeds in
order to facilitate compliance with new Arbitrage Regulations. Cheryl Gunderson,
Business Manager, reported that the recent I.D.-2 Series "C" bonds are subject to new
IRS arbitrage regulations. Penalties for not complying with the complex calculations are
severe and could result in loss of tax-exempt status of the bonds, cash penalty up to
50% of rebate amount and the District may be open to legal action by bondholders. In
order to facilitate compliance with the regulations the District could: perform the complex
calculations itself; employ the professional services of an outside certified public
accounting firm; or participate in the California Arbitrage Management Program (CAMP).
The CAMP trust will invest the District's bond proceeds and perform all of the requisite
calculations. Ms. Gunderson explained that CAMP is a Joint Powers Agency and its
Board of Directors is made up of officials from other public agencies across the State of
California. Following a lengthy discussion by the Board, and on a motion by Director
Cromwell and seconded by Director Fox, the Board voted 5-0 to adopt Resolution 90-16
authorizing the Yorba Linda Water District to join other public agencies as a participant
of the California Arbitrage Management trust and to invest in shares of the trust.
Item 13. Report on Financial Statement for the ten months ended April 30, 1990.
Cheryl Gunderson, Business Manager, reviewed the financial statements for the ten
month period ending April 30, 1990. On a motion by Vice President Knauft and
seconded by Director Armstrong, the Board voted 5-0 to accept the Financial
Statements for the ten months ended April 30, 1990.
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June 28, 1990
Item 14. Quarterly Report on the status of department projects as defined in the
1989-90 Budget. Mike Robinson, Assistant Administrator, presented an audio/visual
status report of the departmental activities related to the 1989-90 Budget. The report
was for the Board's information only and no action was required.
GENERAL MANAGER°S REPORT
Item 15. Consideration of Proposed 1990-91 District Annual Budget. William
Workman, General Manager, reviewed the Proposed 1990-91 Budget with the Board of
Directors. Mr. Workman noted that the Proposed Budget incorporates comments and
input received during the Board's June 18 workshop. In addition, Mr. Workman reported
that the total proposed expenditures in the Water Operating Fund are $7,380,447 and
the Sewer Operating Fund is $434,365, and that the Water and Sewer Operating Fund
Balances at the end of 1990-91 are estimated at $198,564 and $75,095 respectively,
not including the Cost of Living Adjustment to Personnel Services.
The Board of Directors conducted a general discussion of the Budget document, and
requested clarification of a few of the budget policies described in the Notes and
Guidelines. On a motion by Director Fox and seconded by Director Armstrong, the
Board of Directors voted 5-0 to adopt Resolution No. 90-17 adopting the 1990-91
Annual Budget; Resolution No. 90-18 establishing the Appropriations Limit for the
1990-91 year; Resolution 90-19 amending the Chart of Authorized positions; Resolution
No. 90-20 adopting fiscal year 1990-91 Debt Service requirements for
Waterworks-Election 1959 Series "A" and "B" Bonds; Resolution No. 90-21 adopting
fiscal year 1990-91 Debt Service requirements for Improvement District No. 1 Series "A"
and "B" Bonds; and, Resolution No. 90-22 adopting fiscal year 1990-91 Debt Service
requirements for Improvement District No. 2 Series "A", 1987 Refunding Bonds and
Series "C" General Obligation Bonds, and set precise tax rate.
STANDING COMMITTEE REPORT
Item 16. No Executive-Administrative-Organizational Committee meeting report was
scheduled.
Item 17. Appointment of Acting General Manager/Secretary. This matter was referred
to closed session.
Item 18. Report on the Finance Committee meeting of June 13, 1990. The Committee
reported on the request to combine the billboard payables and refunds; California
Arbitrage Compliance program; and, review of proposed 1990-91 Budget.
Item 19. A Finance-Accounting Committee meeting was scheduled for Tuesday, July 3,
1990 at 8:30 a.m. at the District office on Plumosa Drive.
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June 28, 1990
Item 20. Authorization for Payment of Bills. On a motion by Vice President Knauft and
seconded by Director Armstrong, the Board of Directors voted 5-0 to approve payment of
bills and rate deposits in the amount of $713,653.32 on Check Nos. 5334, 5335, 5422
through 5456, 5660, 5656 and 5667 through 5738, and Payroll Check Nos. 5236
through 5289; and one wire to ACWA in the amount of $12,307.29 dated June 28, 1990.
Item 21. No Personnel Committee meeting was scheduled.
Item 22. Report on the Planning-Engineering-Operations Committee meeting of May
21, 1990. The Committee reported on the Leasure project; that the Buena Vida-Friends
Church item should be corrected to read Buena Vida-Evangelical Free Church; Brighton
Annexation; 1989 Amendment with A.W. Associates; 1990-91 Capital budget; and, the
Redevelopment agreements.
Item 23. No Public Information Committee meeting was scheduled.
INTERGOVERNMENTAL MEETINGS
Item 24. Report on City Council meeting of
of Yorba Linda City Council meeting of June
June 19. Director Fox reported on the City
19, 1990.
Item 25. Report on the OCWD meeting of June 20. Director Fox reported on an OCWD
presentation concerning nitrogen in the groundwater and discussed the matter with staff.
Item 26. Report on Planning Commission meeting of June 27. Vice President Knauft
reported on the Planning Commission meeting of June 27, 1990.
BOARD MEMBER COMMENTS
Item 27. Director Armstrong: Director Armstrong discussed a request by the Yorba
Linda Historical Society for storage of the Society's Artifacts on District property.
Following general discussion, it was the Board's consensus that the District can offer
suitable location for a storage container and that staff should prepare a written
document with the following terms: the storage would be temporary in nature; contain a
termination clause; hold the District harmless from damages; and, in the event the
Society ceases to exist, ownership of the items in storage would revert to the District.
The staff will review a location, draft a document and return the matter to the Board for
approval at a future meeting.
Item 28. Director Cromwell: Director Cromwell discussed the status of the escrow on
his home and reported that this may be his last Board meeting as Director.
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June 28, 1990
Item 29. Director Fox: Director Fox reminded the Board of Mr. Workman's going away
party scheduled for Friday, June 29 at noon in the District Boardroom and that he will be
on vacation during the July 12, Board meeting.
Item 30. Vice President Knauft: Vice President Knauft had no comments.
Item 31. President Korn: President Korn reported that he will be on vacation from July
15 to July 27, 1990.
CLOSED SESSION
The Board of Directors held a closed session concerning appointment of Acting General
Manager. On a motion by Director Fox and seconded by Director Armstrong, the Board
voted 5-0 to appoint William Robertson as Acting General Manager/Secretary effective
July 1, 1990, and that compensation will be at the rate of $70,000 per year during his
tenure as Acting General Manager/Secretary. In addition, on a motion by Director
Armstrong and seconded by Vice President Knauft, the Board voted 5-0 to appoint
Cheryl Gunderson as Acting Auditor.
ADJOURNMENT
On a motion by Director Fox and seconded by
voted 5-0 to adjourn the meeting at 12:01 p.m.
Director Cromwell, the Board of Directors
William J. obertson
Acting General Manager/Secretary