Loading...
HomeMy WebLinkAbout1989-04-13 - Board of Directors Meeting MinutesPage 2327 April 13, 1989 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING APRIL 13, 1989 The regular meeting of the Board of Directors of the Yorba Linda Water District was called to order by Sterling Fox, President, at 8:30 a.m., April 13, 1989, in the District offices at 4622 Plumosa, Yorba Linda. Directors present were: Paul Armstrong, Whit Cromwell, Sterling Fox, Roy Knauft and Arthur C. Korn. Also present were: William P. Workman, General Manager, William Robertson, Assistant General Manager, Robb Quincey, Executive Assistant to the General Manager, Mike Payne, Engineering Manager, Cheryl Gunderson, Business Manager, Mike Robinson, Assistant Administrator, Joe Cowan, Assistant Operations Superintendent, Craig Miller and Dennis Jensen, Palm Mesa Development, Peggy McClure, MMI, Brian Johnson, A.W. Associates, and Art Kidman, Legal Counsel. CONSENT CALENDAR President Fox asked that the Palm Mesa Development Project, Item 6, be placed on the discussion calendar. On a motion by Director Cromwell and seconded by Director Armstrong, the Board of Directors voted 5-0 to approve the Consent Calendar as follows: Item 1. Approval of Minutes - Regular meeting of April 13, 1989. Item 2. Authorization for the Directors to leave the State of California prior to next meeting. Item 3. Approval of Progress Payment No. 6 to Fred H. Woodard Company, Inc. in the amount of $24,750.00 and also approve Change Order No. 2 granting a ten calendar day time extension for construction of the Chino Hills Reservoir, Job No. 8136. Item 4. Approval of releasing the Guarantee Bond for J. R. Pipeline Company, Inc. for the Highland-Monson sewer project, Job No. 8833. Item 5. Approval of the terms and conditions for water and sewer service with Forefront Development for their project located north of Buena Vista Avenue and west of Richard Nixon Freeway, Job No. 8904. Item 7. Authorization for soliciting proposals for the geotechnical studies for Zone 5 and Zone 6 reservoirs, Improvement District No. 2. Page 2328 April 13, 1989 DISCUSSION CALENDAR Item 6. Proposed Terms and Conditions for Water and Sewer Service with Palm Mesa Development for Tract No. 13847. Engineering Manager Mike Payne briefly stated that Palm Mesa Development is planning to develop the 5.37 acre property located on the west side of Eureka Avenue, approximately 750 feet south of Yorba Linda Boulevard into nine lots. Recommended for the Board's approval was a set of conditions for the project. The staff desired to add another condition related to the specific alignment of the sewers pursuant to the Board's direction at the March 9, 1989 meeting. Mr. Payne explained that the applicants for this project have requested that the District defer it's water and sewer development fees until a future time. He stated that the staff recommended denial of the request since it is District policy for developers to pay all fees prior to signing plans and that the District has already conceptually agreed to participate financially in the project. Mr. Craig Miller and Mr. Dennis Jensen, Palm Mesa Development, addressed the Board seeking a deferral of the District's development fees until a future date. They explained that the project was costly, particularly the expense of the sewers. The Board discussed the District's fee policy and Palm Mesa Development's request. The Board requested that the staff prepare a detail of fees for the project for the next Board meeting. On a motion by Director Armstrong and seconded by Director Knauft, the Board of Directors voted 5-0 to approve the Terms and Conditions for Water and Sewer Service with Palm Mesa Development, Tract No. 13847, including the added condition related to the specific alignment of the sewers as set pursuant to the Board's action on March 9, 1989. Item 8. Consideration of date for Annual Board of Director's Facilities Tour. Engineering Manager Mike Payne briefly stated that the staff is presently planning for the Board of Director's Annual Facilities Tour. He stated that the staff would like to hold the tour at the end of the Board's next meeting, which is scheduled for April 27, 1989. Mr. Payne stated that the tour will last approximately 1 1/2 hours. After a brief discussion by the Board, on a motion by Vice President Korn and seconded by Director Knauft, the Board of Directors voted 5-0 to schedule the Annual Board of Directors Facility Tour for April 27, 1989. Item 9. District status during the MWD Diemer Plant shutdown of March 28-29. Assistant Operations Manager Joe Cowan stated that the District successfully managed the local water supply system during the scheduled Diemer Filtration Plant shut down March 28-29. He attributed the success to the temporary cut off of construction water, major reductions in public landscape irrigation, reduced water consumption by customers and a weekend rain storm that held down water demands. After a brief discussion by the Board, the report was received as an information item. Page 2329 April 13, 1989 Item 10. Report on Financial Statements for the seven months ended January 13, 1989. Business Manager Cheryl Gunderson stated that the construction in progress balance on the books is at it's lowest point in over five year. She stated that these changes contribute to an increase in the District's Water Plant balance of Assets. She summarily reviewed water sales and sewer billings for this year, compared to last year, and concluded by reviewing the District's total assets and liabilities. After the Board of Directors discussed this issue, on a motion by Director Knauft and seconded by Director Armstrong, the Board of Directors voted 5-0 to accept the Financial Statements for the seven month ending January 31, 1989. Item 11. Consideration of District Vehicle and Equipment Replacement Program. Executive Assistant to the General Manager Robb Quincey stated that the purpose of the proposed Vehicle and Equipment Replacement Program was is to provide a method for making proper and cost effective decisions concerning vehicle and equipment procurement, utilization, maintenance and replacement. He further stated that the plan includes a replacement schedule, which is utilized in determining when vehicles and equipment should be replaced. Mr. Quincey stated that the program consists of a five year forecast for the purchase or replacement of vehicles and equipment, as well as a summary of purchases and replacements over the past two years. The Board requested that the words Ford or Chevrolet in the program report be replaced with the word "domestic", to lend consistency and District preference to the program. On a motion by Director Knauft and seconded by Vice President Korn, the Board of Directors voted 5-0 to approve the District's Vehicle and Equipment Replacement Program. Item 12. Consideration of escrow alternative to bond requirements for District Computer System. Executive Assistant to the General Manager Robb Quincey stated that the Board of Directors had approved the elimination of the performance and labor and material bonds for the computer project, at their March 23, 1989 meeting. Furthermore, two alternatives to the bond requirements placed on the District's computer vendor, MMI Management Systems, were approved at that meeting. Mr. Quincey stated that staff has since investigated an additional alternative. He reviewed an escrow alternative to the bond requirements, stating that an escrow company would serve as a paying agent for all computer invoices to the respective MMI sub-vendors. The escrow company would also require all sub-vendors to sign a release form upon payment, releasing the District from further liability, thus protecting the District's interests. Additionally, Mr. Quincey stated that the escrow alternative would require that MMI post a 10% "Faithful Performance" deposit into escrow, that would be drawn upon in the event that the project is not completed. The Board of Directors briefly discussed the method of which MMI would place the Faithful Performance Security deposit into escrow. The Board directed that the approximate April 13, 1989 $21,000.00 deposit be in the form of a Certificate of Deposit or MMI Savings Pass Book, that could be easily drawn upon by the District. In concluding, the Board stated that whatever means are settled on with regard to the liquidity of the Faithful Performance Security, the interest should accrue to MMI Management Systems. On a motion by Director Cromwell, and seconded by Director Armstrong, the Board of Directors voted 5-0 to approve of the escrow alternative to the bond requirements for the District's computer system; and authorized the General Manager to execute the escrow instructions for this project. Item 13. Consideration of an honorarium for Lisa Iwata-speaker at Xeriscape-Yorba Linda Conference. Assistant Administrator Mike Robinson stated that Landscape Architect Lisa Iwata is a leader of the Orange County Xeriscape movements, and has contributed to all of the District's Xeriscape seminars. As a result of child care, travel and other related costs in participating in District activities, Mr. Robinson explained that the proposed honorarium is designed to offset some of these costs. The Board of Directors discussed this item briefly and stated that the Board chose not to set precedent in such honorariums. On a motion by Director Knauft and seconded by Director Armstrong, the Board of Directors voted 5-0 to approve $100.00 to Ms. Lisa Iwata for covering certain necessary expenses. i Item 14. Consideration of proposed Risk Management Policy Statement and f Procedures Manual. Assistant General Manager William Robertson briefly explained that risk management is the process of planning, organizing, directing and controlling the resources and activities of an organization in order to minimize the adverse effects of accidental losses on that organization at the least possible cost. He stated that the proposed policy statement and procedures manual is the result of discussion beginning in early 1988 regarding risk management. Mr. Robertson explained that the proposed policy statement and manual are a comprehensive guide for use by the District, and the manual includes nine sections concerning various forms of risk management. In conclusion, Mr. Robertson stated that the manual is consistent with policies and procedures already established by numerous surrounding communities and other water related agencies. The Board of Directors extensively discussed and commented on a variety of risk management issues. They requested that specific changes be made with regard to the document including the addition of Workers' Compensation Insurance information. After this discussion, on a motion by Director Cromwell and seconded by Director Armstrong, the. Board of Directors voted 5-0 to approve the Yorba Linda Water District Risk Management Policy Statement and Procedures Manual. Page 2331 April 13, 1989 GENERAL MANAGER'S REPORT Prior to the General Manager's report, Director Armstrong excused himself from the meeting. General Manager Workman advised the Board of Directors that staff had recently completed the installation of the District's weather station and that it is now on line providing a host of weather related data. Item 15. Preliminary Report on the Draft 1989 ID No. 2 Water Service Agreement. General Manager William Workman explained that up until present time, the development in Improvement District No. 2 has been guided to a large extent by the 1983 Water Service Agreement. Over the past several months the District has been in dialogue with eastside developers regarding a new Water Service Agreement to permit development in the remaining undeveloped portions of I.D. No. 2. Mr. Workman stated that a 1989 Water Service Agreement is being drafted, which will describe phasing of development and related construction of facilities; the financing of these facilities; and specific obligations of the developers and the District in proceeding with development in this area. Mr. Workman stated that the document will be scheduled for consideration on April 27, 1989. He indicated that the agreement would call for the sale of approximately $15 million of I.D. No. 2 General Obligation Bonds to finance new water facilities. The Board of Directors discussed this issue at length and concluded by receiving the report as an information item. LEGAL COUNSEL'S REPORT. Item 16. Report on Packing House easements. District Legal Counsel Arthur Kidman reported that while he had been successful in recently reopening a line of communication with Mr. Kavli's attorney, there remains to be a number of questions that are outstanding regarding Packing House Building No. 4 and the easements associated with it. He stated that the areas of question concern the status of title and easements on the property and District costs related to this project. Mr. Kidman advised the Board of Directors that he would continue to seek answers and resolution to the areas of concern that remain. Item 17. AMP Flow Augmentation Project Update. District Legal Counsel Arthur Kidman advised the Board of Directors that a good deal of activity has recently occurred with regard to this project, and stated that the District has received several letters from Municipal Water District of Orange County with regard to this project. Mr. Kidman stated that while he has maintained the District's position with regard to the project, a variety of questions concerning operational costs for this project, as well as the cost allocation for operations and maintenance to be incurred by the District, remain unanswered at this time. He stated that he would continue to work with staff and MWDOC, to further examine this issue. L_ Page 2332 April 13, 1989 STANDING COMMITTEE REPORTS Item 18. No Executive-Administrative-Organizational Committee Meeting report was scheduled. Item 19. No Finance-Accounting Committee Meeting Report was scheduled. Item 20. Authorization for Payment of Bills. On a motion by Director Knauft and seconded by President Fox, the Board voted 4-0 to approve payment of bills and rated deposits in the amount of $342,646.41 on check Nos. 16935 through 17092, Payroll Check Nos. 3087 through 3214 and one wire dated April 14, 1989 to MWDOC in the amount of $70,189.92. Item 21. Report on Personnel Committee Meeting of March 31, 1989. President Fox reported that the committee reviewed issues relating to labor negotiations, a potential disability retirement, back school, inspection services, District Sexual Harassment Policy, Risk Management Policy and Tax Reform Law Section 89. Item 22. Report on Planning-Operations-Engineering Committee Meeting of March 29, 1989. Vice President Korn reported that discussed at this meeting was the I.D. No. 2 Agreement, Mable Payne School, Reservoir fencing and signage, I.D. No. 2 Pressure Zone 6 Temporary Reservoir, District telephone system, five year plan update schedule, packing house project and soil investigations for Santiago Reservoir. Item 23. Report on Public Information Committee Meeting of April 4, 1989. Director Cromwell reported that issues regarding the Fairmont Reservoir Xeriscape Garden, "Xeriscape-Yorba Linda, District facilities tour, Xeriscape 89, Well Protection Program, 1989 Annual Report, "Waterlines"Newsletter, Water Awareness Week, Sign Design Contest, Marketing Research, Diemer Plant Shut-Down and the District's weather station were discussed at this meeting. INTERGOVERNMENTAL MEETINGS. Item 24. Report on Planning Commission Meeting of March 29, 1989. Director Knauft reported that he attended; however, nothing of significance to the district was discussed. Item 25. Report on City Council Meeting of April 4, 1989. Director Cromwell reported that he attended the City Council Meeting and that the Orange County League of Cities' policies were reviewed, with very little else of significance to the District being discussed. Item 26. Report on MWDOC Meeting of April 5, 1989. No attendance by the District. Item 27. Report on OCWD Meeting of April 5, 1989. No attendance by the District. Page 2333 April 13, 1989 Item 28. Report on WACO Meeting of April 7, 1989. Director Knauft reported that he attended the meeting, and that members of the California State Water Resources Control - Board were present to discuss the Bay Delta Hearings. Item 29. Report on Planning Commission Meeting of April 12, 1989. Director Cromwell reported that he attended this Planning Commission Meeting; however, nothing of significance to the District was discussed. ADJOURNMENT On a motion by Director Knauft and seconded by Vice President Korn, the Board of Directors voted 4-0 to adjourn the Board meeting at 10:27 a.m. l^ P William P. Workman General Manager/Secretary