HomeMy WebLinkAbout1990-12-13 - Board of Directors Meeting Minutes_ ~1 -7 -7
Page,2$ff
December 13, 1990
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
December 13, 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 8:30 a.m., December 13, 1990, at the
District Headquarters, 4622 Plumosa Drive, Yorba Linda. Directors present were: Paul
Armstrong, Sterling Fox, Carl Scanlin, Vice President Roy Knauft and President Arthur
C. Korn. Also present were William Robertson, Secretary/General Manager; Cheryl
Gunderson, Business Manager; Ray Harsma, Operations Superintendent; Mike Payne,
Engineering Manager; Mike Robinson, Assistant Administrator; Barbara Bower,
Secretary to the Manager; Michael Furr, Meter Reader I; and, Jack McDavid, Chief Plant
Operator. Visitors present were Mr. Stanley Sprague, General Manager Municipal
Water District of Orange County and Mr. Karl Seckel, Assistant General Manager
Municipal Water District of Orange County.
INTRODUCTION OF VISITORS
Item 1. Seat Director Carl T. Scanlin. President Korn formally welcomed Director Mr.
Carl T. Scanlin and presented him with accouterments of office such as the Certificate of
Election from the County Registrar of Voters, District lapel pin, District writing pen,
Directors 5-star cap and cup recognizing the District's 75th anniversary. President Korn,
with consent of the Board, then assigned Director Scanlin to the Personnel and Public
Information Committee's, and noted these Committee assignments will remain in effect
until the Board's reorganization at the first regular meeting in January. President Korn
also presented the Certificate of Election from the County Registrar of Voters to Director
Fox and Director Armstrong.
Item 2. Introduction of new employee Michael Furr, Meter Reader I, and promotion of
Jack McDavid to Chief Plant Operator. Cheryl Gunderson, Business Manager
introduced Mr. Michael Furr who was recently hired to fill the Meter Reader I position.
Ray Harsma, Operations Superintendent, introduced Mr. Jack McDavid who was
recently promoted from Telemetry Technician/Operator to Chief Plant Operator.
CONSENT CALENDAR
Prior to voting on the Consent Calendar, Director Armstrong questioned the mileage
reimbursement rate of $0.255 per mile in Item 5. General Manager Robertson
responded that $0.255 per mile was the current rate allowed by the IRS. Director
Armstrong then asked whether the railroad License agreement, in Item 9, also pertained
to the S&S water well. General Manager Robertson explained that it did not include any
work related to the S&S well pipeline. On a motion by Director Fox and seconded by
Director Armstrong, the Board of Directors voted 5-0 to approve the Consent Calendar
as follows:
Page
December 13, 1990
Item 3. Approval of Minutes - Adjourned meeting of November 20, 1990.
Item 4. Authorization for the Directors to leave the State of California prior to next
meeting.
Item 5. Approval to renew Consultant Contract with R&W Highway Inspection
Company for inspection services.
Item 6. Approval of reimbursement costs to A.W. Associates for Phase 8 of the Bryant
Crossfeeder in the amount of $138,360.26.
Item 7. Approval of Terms and Conditions for Water Service; approve the Declaration
of Restrictive Covenants and authorize the President and Secretary to execute the
Declaration of Restrictive Covenants with Rose Development, Parcel Map No. 90-360,
Job No. 9049.
Item 8. Approval to release the Guarantee Bonds with William Lyon Company,
totalling $13,500.00 for their Tract's numbered 12584, 12585 and 12586.
Item 9. Approval of a Pipeline license with Atchison, Topeka and Santa Fe Railway
Company; and authorize the President and Secretary to execute the license.
DISCUSSION CALENDAR
At the request of William Robertson, General Manager, Agenda Item 18 was moved to
this point of the meeting to accommodate the visiting MWDOC representatives.
Item 18. Consideration of Principles for a future buyout of the Allen-McColloch
Pipeline by the Metropolitan Water District of Southern California. William Robertson,
General Manager, introduced this subject by stating that the Municipal Water District of
Orange County (MWDOC) is in the process of negotiating sale of the Allen-McColloch
Pipeline (AMP) to the Metropolitan Water District of Southern California (MWD). Mr.
Robertson went on to report that sale of the AMP is a very complicated issue and to
facilitate a thorough discussion of the deal points, Mr. Stanley Sprague, MWDOC
General Manager and Karl Seckel, MWDOC Assistant General Manager were present
to make an oral presentation to the Board of Directors. Mr. Sprague briefly reviewed the
conditions leading up to sale of the AMP to MWD and turned to the discussion over to
Mr. Seckel. Mr. Seckel then facilitated a detailed, and interactive, discussion with the
Board of Directors concerning the technical aspects of the MWD's proposal as they
relate to operation of the AMP facility, ongoing MWDOC construction activities, proposed
MWD projects, simplified terms of MWD's buyout proposal, financial considerations and
the proposed interim terms covering the 1991-1998 time period. General Manager
William Robertson then reviewed the advantages and disadvantages of the proposal,
and the District's major concerns.
Page
December 13, 1990
The Board of Directors concluded the discussion with a review of following deal points:
1. Guaranteed Hydraulic Grade Line. One of the District's major concerns is
maintaining the guaranteed AMP Hydraulic Grade Line (HGL). Mr. Sprague
reported that MWD's operating policies do not include a guaranteed HGL and
preliminary studies indicate the District's HGL will not be affected by a MWD
takeover. President Korn noted that without guarantees, the south County
agencies could take additional flows to the detriment of District customers. Mr.
Sprague reported MWDOC will continue studying the AMP flow characteristics
after MWD's takeover and consider language to build a pump station at D1-02 in
the event the District's HGL drops below the 780 foot level.
2. MWD's past performance in Orange County. Directors' Korn, Armstrong and Fox
expressed concern that MWD's performance in Orange County is not very good,
as it relates to construction of new facilities away from the Diemer Plant. Mr.
Sprague reported that MWDOC's annexation conditions provided that the Diemer
Plant was the point of delivery in Orange County, therefore, extension of facilities
to connect agencies to the Diemer Plant is incumbent on MWDOC not MWD.
3. Completion of the Tunnel phase of MWD's Central Pool Augmentation Project
(CPAP). The Board noted that without the tunnel phase of the CPAP, MWD will
have problems meeting its service commitments in Orange County. Moreover, if
these improvements are not completed in a timely manner, then advantages of
MWD takeover are severely limited. Mr. Sprague reported they cannot write
language to force completion of a project if it is delayed because of
environmental or financial reasons; however, MWDOC will consider language
regarding the a specific takeover date and timely completion of alternative
facilities in the event primary facilities are delayed.
4. Buyout Price. Directors' Korn, Armstrong and Fox expressed concern over the
financial considerations proposed by MWD. After lengthy Board discussion, the
major concerns focused on value of the pipeline, compensation of capacity
leased to others, and that MWD provide comprehensive liability insurance along
with taking over the operations and maintenance costs, including pump station
O&M if necessary.
5. Reaction of other participants to the AMP buyout. The Board discussed issues
raised by other participants. Mr. Sprague reported that MWDOC will keep the
District apprised of terms and conditions as they are developed.
The purpose of this report was to solicit input from the Board, therefore, no further Board
action was required.
Mr. John Gullixson, City Council member, City of Yorba Linda arrived during discussion
of this item. Mr. Gullixson was introduced to the Board of Directors and then reported he
was appointed as the City's representative to attend the District's Board of Directors
meetings. President Korn welcomed Mr. Gullixson and announced a five minute recess.
Page
December 13, 1990
Item 10. Approval of Reimbursement of construction costs to Buena Vida Associates in
the amount of $20,101.76 for the installation of Water Improvement in Eureka Avenue.
Engineering Manager, Mike Payne, presented a report on the reimbursement of pipeline
installation costs to Buena Vida Associates. Mr. Payne reported the District still has not
received clearance on the lien waiver filed by Buena Vida's contractor. District legal
counsel, Mr. Arthur G. Kidman, reported on the various legal problems associated with
this project and that an agreement is being drafted to allow reimbursement by the
District and simultaneous release of the lien waiver by the contractor. Mr. Payne
reported that the staff recommendation is to authorize reimbursement subject to receipt
of the proper closing forms and approval as to form by the District's legal counsel.
Following a general discussion of Buena Vida Associates inability to secure lien waivers
from contractors, and on a motion by Director Armstrong and seconded by Director Fox,
the Board of Directors voted 5-0 to approve the reimbursement of construction costs to
Buena Vida Associates in the amount of $20,101.76 for the installation of Water
Improvements subject to receipt of the proper closing forms and approval by the
District's legal counsel.
Item 11. Approval of Reimbursement of construction costs to Corporate Bank in the
amount of $56,658.80 for the installation of the Eureka Avenue Trunk Sewer Project.
Michael Payne, Engineering Manager, reviewed the projects overall status and the
complex legal problems between Buena Vida Associates and Casada Engineering,
Casada Engineering and Evangelical Free Church, and Casada Engineering and
Corporate Bank. Mr. Arthur Kidman, District legal counsel, reported that the District,
Buena Vida Associates, Corporate Bank and Casada Engineering are in the process of
completing general release and indemnity agreements to allow final reimbursement of
the sewer project's approved construction cost. Both Mr. Payne and Mr. Kidman
reported that the reimbursement originally intended to Corporate Bank has changed
and the District is now in the process of determining how the funds will be dispersed.
Given that several indemnity and release agreements are not yet in place, staff's
recommendation is to approve reimbursement subject to review and approval as to form
by District legal counsel, the agreements transferring the funds and giving the District
clear title to the sewer facility. On a motion by Vice President Knauft and seconded by
Director Fox, the Board of Directors voted 5-0 to approve the reimbursement of
construction costs for the Eureka Avenue Trunk Sewer project to a party to be
determined at a later date in the amount of $56,658.80 subject to receipt of the proper
closing forms and approval as to form of all legal documents by the District's legal
counsel; and, approve the allocation of $12,881.80 from the Yorba Linda-Fairmont Blvd.
Sewer Replacement Project.
Item 12. Consideration of authorization for the use of a Savings Account Assignment {
to meet the District's Surety Bond Requirements. Michael Payne, Engineering Manager,
reported that it is extremely difficult for private citizens and small developers to acquire
the Surety Bond required in the District's standard application for service. Current
District policy allows the option to deposit cash in lieu of a bond, however, such deposits
r~ I
Pager
December 13, 1990
are in non-interest bearing accounts. Mr. Payne reported that in response to several
requests from applicants, the staff is proposing a change in policy to allow applicants the
option of providing the District with a passbook account or certificate of deposit in an
interest bearing account. Mr. Payne also reported that a passbook account allows the
District easier access to the money in the event repairs are necessary. Lastly, Mr. Payne
reported that the accounts will be deposited in banks, or institutions, that meet the
District's investment policy and will be federally insured. Following a general discussion
to change the policy to allow individual applicant to deposit funds in more than one
institution, and on a motion by Vice President Knauft and seconded Director Fox, the
Board of Directors voted 5-0 to adopt Resolution No. 90-40, as amended, adopting the
use of an Assignment of a Pass-Book Account or a Certificate of Deposit to meet the
District's Surety Bond Requirements for water and sewer facilities installed by
applicants.
Item 13. Approval of agreement with Conrad & Associates for the 1990-91 Annual
Audit. Cheryl Gunderson, Business Manager, reported the District is required to engage
an independent auditor to audit to the books annually. Mrs. Gunderson reported she
received an engagement letter from Conrad & Associates for the June 30,1991 audit
reflecting a 5% increase which was subsequently negotiated to a modest 3% increase.
Director Fox noted that next year it was time to change firms and the other Board
members concurred. Director Armstrong discussed a change in the agreement's
indemnification clause to require that a certificate of insurance be issued to the District.
On a motion by Vice President Knauft and seconded by Director Fox, the Board of
Directors voted 5-0 to approve the agreement between Yorba Linda Water District and
Conrad& Associates for the 1990-91 Annual Audit, as amended to include the certificate
of insurance, in the amount of $12,298.00 and authorize the President and Secretary to
execute the contract.
Item 14. Report on the Financial Statements for the four months ended October 31,
1990. Cheryl Gunderson, Business Manager, reported that water sales for the first four
months of the fiscal year have surpassed the same period last year by approximately
$350,000, and that net income for the current period is higher than for the same period
last year. Following a general discussion on the financial statements, and on a motion
by Director Fox and seconded by Director Armstrong, the Board of Directors voted 5-0 to
accept the Financial Statements for the four months ended October 31, 1990.
Item 15. Consideration of contracting with Lincoln National Life Insurance as an
authorized Yorba Linda Water District deferred compensation plan provider. Cheryl
Gunderson, Business Manager, reported the District currently has two options available
to the employees participating in the deferred compensation plan. Several requests
have been received by both participating and non-participating employees for services
not provided by either of the current companies. Lincoln National Life Insurance
Page
December 13, 1990
Company can provide all of the services commonly requested by employees. In
addition, they are a widely known company, respected in the industry and used by many
other special districts in southern California. Mrs. Gunderson then presented a detailed
review of the services provided by Lincoln National Life Insurance and the advantages
of their program. Mrs. Gunderson concluded with a report that if Lincoln National Life
Insurance Company is approved they will become a third optional deferred
compensation provider without replacing any of the existing plans. Following a general
discussion of the plan benefits, feasibility of dropping one of the existing plans, and
clarification of the staffs recommendation, and on a motion by Vice President Knauft and
seconded by Director Armstrong, the Board of Directors voted 5-0 to authorize the
President and Secretary to execute an Application for Contract with Lincoln National
Life Insurance as an authorized deferred compensation plan provider.
Item 16. Consideration of 1990 update to the Urban Water Management Plan. Michael
Robinson, Assistant Administrator, reviewed the District's 1990 Update to the Urban
Water Management Plan with the Board of Directors. Mr. Robinson noted that the 1990
update represents a philosophical shift from reactive to proactive water conservation
programs. These programs are intended to effectively deal with current and potential
water supply deficiencies. The Board reviewed editorial changes in the text and
discussed the major policy choices for Alternative Water Conservation Measures
addressed in Chapter 6 of the Plan. The Board concurred with the activities already
identified in Chapter 6 and requested that staff include additional water conservation
measures such as gray water usage, point of use water heater devices and control over
new water connections. The purpose of this report was to solicit input from the Board, so
no further Board action was required.
Mr. John Gullixson departed at this point in the meeting.
GENERAL MANAGER'S REPORT
Item 17. Appointment of Board member to participate on the City of Yorba Linda's
General Plan Steering Committee. William Robertson, General Manager, reported that
the City of Yorba Linda has requested appointment of one Board member to sit on a
General Plan Steering Committee. The composition of the Steering Committee includes
members representing a cross section of community services such as the City Council,
all City appointed commissions, Chamber of Commerce, Water District, School District,
Equestrian Trails group and Senior Citizen Club. President Korn noted that a logical
choice for appointment would be chairman of the District's Planning-Engineering-
Operations Committee, Director Paul Armstrong. Other members of the Board
concurred, and requested appointment of an alternate in the event the Director
Armstrong was unable to attend any of the eight workshops over the upcoming 19
month period. On a motion by President Korn and seconded by Director Fox, the Board
of Directors voted 5-0 to appoint Director Paul Armstrong as the District's representative
on the City of Yorba Linda's General Plan Steering Committee and Vice President Roy
Knauft as the alternate.
Page.
ORS-
December 13, 1990
President Korn departed at this point and turned the meeting over to Vice President
Knauft.
LEGAL COUNSEL'S REPORT
Item 19. District legal counsel, Mr. Arthur G. Kidman, had no report or comments.
STANDING COMMITTEE REPORT
Item 20. Schedule an Executive-Administrative-Organizational Committee meeting.
The committee tentatively scheduled a meeting for Thursday, December 20, 1990
subject to confirmation by President Korn.
Item 21. Schedule a Finance-Accounting Committee meeting. The General Manager
will call President Korn and Vice President Knauft to schedule a meeting for either
December 20 or 21, 1990.
Item 22. Authorization for Payment of Bills. On a motion by Director Armstrong and
seconded by Director Scanlin, the Board of Directors voted 4-0 to approve payment of
bills, payroll and refunds in the amount of $557,386.74 on Check Nos. 6084, 6085,
6205, 6206 and 6929 through 7056; and Payroll Check Nos. 6042 through 6094 and
two wires, one dated November 28, 1990 to ACWA in the amount of $13,349.39 and
one dated December 13, 1990 to MWDOC in the amount of $313,647.18.
Item 23. No Personnel Committee meeting report was scheduled.
Item 24. Oral report on the Planning-Engineering-Operations Committee meeting of
December 12, 1990. The Planning-Engineering-Operations Committee reported the
Urban Water Management Plan, MWD Conservation program, AMP buyout by MWD,
new EPA rules concerning Coliform bacteria testing and recent test results for Well's 11
and 9, Amendment No. 2 to the 1989 Water Service Agreement in I.D.-2, Appraisal for
property to build a booster station in I.D.-2, and the reimbursements appearing on
today's agenda were discussed at the December 12, 1990 Committee meeting.
Item 25. No Public Information Committee meeting report was scheduled.
INTERGOVERNMENTAL MEETINGS
Item 26. Report on MWDOC meeting, November 21,1990. Director Knauft attended
the meeting and reported that nothing of interest to the District was discussed.
Item 27. Report on ACWA Fall Conference meeting, November 28-30. Director's
Armstrong, Fox and Knauft reported that they attended the ACWA Conference.
Item 28. Report on City Council meeting, December 4, 1990. Director Knauft attended
and reported on the introduction of newly elected council member.
Page °2`
December 13, 1990
Item 29. Report on CRWUA Annual Conference, December 5-7, 1990. Director°s
Armstrong, Fox, Scanlin, Knauft and Korn reported that they attended the CRWUA
Conference.
Item 30. Report on WACO meeting, December 7, 1990. Director Knauft reported the
meeting was scheduled for December 14, 1990 not December 7, 1990 as printed in the
Agenda.
Item 31. Report on Planning Commission meeting, December 12, 1990. Director
Armstrong attended the meeting and reported that Brighton Homes has requested a
three year extension for their development adjacent to the Shell property, and
Commission discussion concerning the commercial development at the southeast
corner of Richfield Road and Yorba Linda Blvd.
BOARD MEMBER COMMENTS
Item 32. Director Armstrong: Director Armstrong encouraged staff to continue using fire
hoses while flushing fire hydrants to minimize the visual impact of this activity.
Item 33. Director Fox: Director Fox reported that the District Tour on Saturday,
December 8th was quite successful and these tours are well received by the public.
Item 34. Director Scanlin: Thanked the Board for the accouterments of office and is
glad to be aboard. In addition, he thanked the staff for the detailed orientation process.
Item 35. Vice President Knauft: Vice President Knauft wished a happy holidays to the
staff and thanked them for their fine effort during 1990.
Item 36. President Korn: President Korn was absent.
BOARD OF DIRECTORS ACTIVITY CALENDAR
The Board reviewed the activity calendar and made assignments.
CLOSED SESSION
There was no closed session.
ADJOURNMENT
On a motion by Director Fox and seconded by Director Scanlin, the Board of Directors
voted 4-0 to adjourn the meeting at 11:17 a.m.
William J. Robertson
General Manager/Secretary