HomeMy WebLinkAbout1988-08-25 - Board of Directors Meeting MinutesPage 2238
August 25, 1988
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
AUGUST 25, 19M
The regular meeting of the Board of Directors of the Yorba Linda Water District was called
to order by President Armstrong at 8:30 a.m., August 25, 1988, in the District offices at
4622 Plumosa, Yorba Linda. Directors present: Paul R. Armstrong, Whit Cromwell,
Sterling Fox, Roy Knauft, and Art Korn. Also present were: William J. Robertson, Assistant
General Manager, Robb Quincey, Executive Assistant to the General Manager, Michael
Payne, Engineering Manager, Cheryl Gunderson, Business Manager, Ray Harsma,
Operations Superintendent, Art Kidman, Legal Counsel, and Richard Rafanovic, Senior
Vice President with BSI Consultants, Inc.
• CONSENT CALENDAR
An approximate value of $500.00 was given for the pipe and appurtenances that are to be
sold or disposed of in Item 9. On a motion by Vice President Fox and seconded by
Director Cromwell, the Board voted 5-0 to approve the Consent Calendar as follows:
Item 1. Approval of Minutes - Regular Meeting of August 11, 1988.
item 2 Authorization for the Directors to leave the State of California prior to next meeting.
Rom 3. Approval for Sewer Connection with Mr. & Mrs. Raymond K. Reid, 5972 Ridge
Way, Yorba Linda, Service No. 29-1856, in the amount of $2,359.47.
Item 4. Approval for water and sewer service with Covington Technologies, Inc., Tract No.
13068 in the City of Placentia, in the amount of $20,224.82, Job No. 8815 for water
service, and $8,965.00, S-8815, for sewer service.
loam 5. Approval for Sewer Connection with Mr. & Mrs. Richard H. Rex, 16801 Nightingale
Lane, Yorba Linda, Service No. 5-133, in the amount of $1,125.00.
hon 6. Approval of Application to and Agreement for Water Service with Hillman
Properties for Parcel Map No. 87-119, located east of Weir Canyon Road and south of La
Palma, Job No. 8844, in the amount of $3,125.00.
Item 7. Approval of Application to and Agreement for Water Service with Carlan Homes,
Inc. for Tract No. 13482, located north of La Palma and east of Camino de Bryant, Job No.
8831, in the amount of $26,625.00.
Item 8. Approval of Application to and Agreement for Water Service, Job No. 8848, in the
amount of $3,432.00, and Sewer Connection Application and Permit, Service' Nos.
19-1094, 19-1095, 19-1128, in the amount of $5,263.82, with Mr. Mark Lehman, 9572
Brynmar Drive, Villa Park, Yorba Linda.
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August 25, 1988
Item 9. Designation of certain Operations Department pipe and appurtenances as surplus
and authorization for their sale or disposal.
DISCUSSION CALENDAR
Item 10. No report was scheduled.
PUBLIC HEARING CALENDAR
Item 11. Improvement District No. 2 Water Standby Assessments for Fiscal Year 1988-89.
President Armstrong opened the public hearing. Assistant General Manager William
Robertson advised the Board that no petitions or correspondence was received on the
matter, and that the public notice on this issue was published in the Orange County
Register on August 10th and 17th, 1988.
Engineering Manager Michael Payne made an extensive presentation regarding Water
Standby Assessments, and requested that the Board receive and accept the Engineer's
Report on Fiscal Year 1988-89 Water Standby Assessments for Improvement District No.
2, and adopt a resolution fixing Improvement District No. 2 Water Standby Assessments for
Fiscal Year 1988-89. Mr. Payne described the authorization for, and the establishment of
Improvement District No. 2 revenue sources for water facilities. He also explained the
purposes of the Water Standby availability assessments, and the relationship that the
District has with BSI Consultants to prepare an Engineer's Report for these assessments in
Improvement District No. 2.
Mr. Payne explained that the Engineer's Report recommends a Water Standby
Assessment totaling $576,552.80 so as to raise sufficient revenue to pay principal and
interest on Improvement District No. 2 General Obligation Bonds. Mr. Payne concluded by
reviewing the total debt service of $1,665,497.00 for General Obligation Bonds for ID #2,
the reserves on hand and projected ad valorem water bond property taxes and standby
assessments to be collected so as to offset or equal the total debt service for Improvement
District No. 2.
Mr. Richard Rafanovic of BSI was introduced and briefly presented the Engineer's Report
prepared by BSI. He explained the process of which to calculate the various zone
apportionments in ID #2, and reviewed the proposed rates and assessments. After Board
discussion regarding the assessed dollar valuation of Improvement District No. 2, and the
Water Standby Assessment issue in. general, President Armstrong closed the hearing after
asking for public testimony and receiving none. On a motion by Director Cromwell and
seconded by Director Korn, the Board voted 5-0 to receive and accept the Engineer's
Report on Fiscal Year 1988-89 Water Standby/Availability Assessments for Fiscal Year
1988-89 within Improvement District No. 2, and authorized the President and Assistant
Secretary to execute the resolution.
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August 25, 1988
item 12 Sewer Maintenance Charge. President Armstrong opened the public hearing.
Assistant General Manager William Robertson advised the Board that no petitions or
correspondence was received on the matter, and that the public notice was published in
the Orange County Register on August 10th and 17th, 1988. He then presented a request
to the Board to adopt Ordinance No. 88-1 and 88-2 adjusting the District's Annual Sewer
Maintenance Charge.
Mr. Robertson presented the Yorba Linda Water District Sewer Maintenance Charge
Study, and explained that the study concludes that the District's Sewer Operating Fund is
weak, and that the Sewer Maintenance Charge is in need of an increase from the current
$15.00 annual per connection charge. Mr. Robertson briefly outlined two options of which
to increase the Sewer Maintenance Charge; and henceforth, bring the Sewer Fund back
into good financial health. Option 1 (Full Cost Recovery), was designed to raise the
annual rate to $28.00 per connection; thereby, immediately bringing the Sewer Fund back
into good financial health. Option 2 (Phased Cost Recovery), was designed as a multi
year plan to bring the Sewer Operating Fund back into a good financial position, by
initially increasing the fee to $21.00 per year per connection for 1988-89. By 1991-92, the
fee would be set at $31.00 per year per connection.
Mr. Robertson explained that the options were presented to the Finance-Accounting
Committee which held a meeting on August 16, 1988. As a result of that meeting, Mr.
Robertson was recommending Option 2 which would incrementally raise the sewer fee so
as. to strengthen the Sewer Operating Fund. At the conclusion of Mr. Robertson's
presentation, Director Knauft commented that while the Finance Committee did review the
options and favored an increase to $21.00 per year per connection, the Committee did not
wish to recommend the adoption of an automatic increase from year to year, without an
annual review. Mr. Robertson explained that an element of Option 2 was the annual
review, and further explained that it was not staffs' intent to suggest that the sewer fee
would automatically raise every year, but rather suggested that the phased option was a
plan intended to be reviewed annually.
The Board participated in a lengthy discussion regarding a variety of issues pertaining to
this subject. The issue of using interest from the Sewer Capital Improvement Fund to
support the Operating Fund was discussed, in addition to comparative analysis of other
city and agency charges for similar services. Additionally, Issues such as Sewer Capital
Improvement and the cost effectiveness and feasibility of providing sewer services was
generally discussed The Board indicated an interest in more staff comparative analysis
and research on this issue prior to accepting or adopting a "full recovery or phased
recovery" approach. President Armstrong closed the public hearing after asking for public
testimony and receiving none.
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August 25, 1988
With the specific intent to raise the 1988-89 Sewer Maintenance Charge to $21.00,
necessitating that an annual review occur prior to raising the fee in any future years, and
agreeing in compromise to accept staff recommendations regarding the fee ordinances,
but not accepting or authorizing the adoption of either a "Full Cost Recovery or Phased
Cost Recovery", on a motion by Vice President Fox and seconded by Director Knauft, the
Board voted 5-0 to adopt Ordinance 88-01 setting the Locke Ranch Sewer Maintenance
Assessment at $21.00 per year. Additionally, on a motion by Director Knauft and
seconded by Director Cromwell, the Board voted 5-0 to adopt Ordinance 88-02 setting the
Yorba Linda Water District Sewer Maintenance Charge at $21.00 per year.
GENERAL MANAGER'S REPORT
Item 13. No General Manager's report scheduled.
LEGAL COUNSEL'S REPORT
Item 14. No Legal Counsel report was scheduled.
STANDING COMMITTEE REPORTS
Item 15. No Executive Committee report was scheduled.
Item 16. The Finance-Accounting Committee meeting of August 16, 1988. Vice President
Fox summarized the Finance-Accounting Committee meeting most of which was
discussed in the public hearing regarding Sewer Maintenance Charges. Dr. Fox
explained that staff had presented the two options of raising the sewer fees at this meeting.
Item 17. Authorization for payment of bills. On a motion by Vice President Fox and
seconded by Director Knauft , the Board voted 5-0 to approve payment of bills and rate
deposits in the amount of $444,867.39 on Checks No. 15197 and 15300 through 15375,
Payroll Checks No. 1236 and 1907 through 1975 and two wires, one dated August 29,
1988 to ACWA, in the amount of $9,283.99 and one dated August 31, 1988, to Bank of
America, in the amount of $160,794.97.
Item 18. No Personnel Committee report was scheduled.
Item 19. No Planning-Operations-Engineering Committee report was scheduled.
Item 20. No Public Information Committee report was scheduled; however, Michael
Robinson, Assistant Administrator, reported that a Xeriscape plot plan for the Fairmont
Reservoir had been completed, and the Committee desired to bring it to the Board for
approval in the near future. The next Public Information Committee is scheduled for
August 31, 1988 at 7:30 a.m.
INTERGOVERNMENTAL MEETINGS
Item 21. Report on City Council meeting of August 16. Director Cromwell cited the major
issue at this meeting as Bastanchury Road and Shell Corporation's participation in this
project. Director Cromwell indicated that the City recommended that a comprehensive and
detailed study be conducted regarding this issue over the next six months.
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August 25, 1988
Hem 22. Report on Planning Commission meeting of August 17.
Item 23. Report on OCWD meeting of August 24. Vice President Fox reported that this
meeting focused on Santiago Canyon, and work that is being undertaken with the U.S.
Corp of Engineers to dredge this area.
Item 24. Report on Planning Commission meeting of August 24. Director Korn reported on
three issues that were addressed at this meeting. It was discussed that a group presented
a request to reconstruct a church at the corner of Ohio and Yorba Linda, and residents of
this area were at the meeting to speak out against this plan. Additionally, the group
proposing the church were directed by the Commission to convert the existing church
sewer to the City sewer system. Mr. Korn stated that a hotel that was proposed for Savi
Ranch was rejected, as its specifications did not meet Yorba Linda standards. Mr. Korn
concluded by reporting that the Planning Commission received a report regarding parking
ratios planned for churches; and he noted that 19 items have been placed on the agenda
for the next meeting.
ADJOURNMENT
Prior to adjournment, President Armstrong briefly reported on a trip that he had recently
made to San Jose; and that while visiting a restaurant there, he noted water fact sheets
published by the Santa Clara Valley Water District outlining details about the local water.
President Armstrong also asked that Engineering Manager Michael Payne report on the
status of the well drilling in the Metropolitan Water District right-of-way and Village Center
Drive, and about settlement and slippage in this area. On a motion by Vice President Fox
and seconded by Director Cromwell, the Board voted 5-0 to adjourn to Wednesday,
September 7, 1988.
William P. Workman
General Manaqer/S