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HomeMy WebLinkAboutMinutes - EVWD Board of Directors - 10/10/1972 1987 ~.AST SikN BERNARDINO COUNTY NATER DISTRICT NOTICE CHANGE OF REGULAR BOARD MEETING OCTOBER 9, 1972 TO OCTOBER 10, 1972 Due to the next Regular Meeting of the Board of Directors of the East San Bernardino County Water District falling on the Holiday of October 9, 1972 [Columbus Day] the Regular Meeting will be held on the next working dat, October 10, 1972 at 7:30 P. M. at the District Office, 1155 Del Rosa Avenue, San Bernardino, all in accordance with the Government Code Section 54954. Orig /s/ by HR Harold G. Rickert, Secretary Board of Directors Posted Sept. 26, 1972 until Board Meeting October 10, 1972 Affidavit of Posting notarized in file 926.9 EAST SAN BERNARDINO COUNTY WATER DISTRICT REGULAR MEETING October 10, 1972 CALL TO ORDER The meeting was called to Order at 7:30 P.M. PLEDGE OF All those present joined in the Pledge of ALLEGIANCE Allegiance to the Flag of the United States of America ROLL CALL Directors Present: Disch, Forrest, Littleton, Stallwood and Wall Directors Absent: None Others Present: Gen.Manager-Secretary Rickert; Auditor Hendricks; Temporary Recording Secretary Dorr, Consulting Engineer Halwes; Attorney Robt. Farrell and Ken Patterson ofEadie & Payne CPA's. MINUTES OF There being no corrections or additions to the SEPTEMBER 25 Minutes of the Regular Board Meeting of September MOTION 25, 1972, motion was made by Director Disch, duly seconded by Director Forrest and carried unanimously to approve the Minutes as submitted. At this point it was suggested by Director Forrest that the Agenda sequence be changed to allow Ken Patterson of Eadie & Payne CPA's to make two reports as set on the Manager's Report. President Stallwood concurred. REPORTS MANAGER'S REPORT WATER & SEWER DIVISION Ken Patterson reported that the District was in a AUDIT REPORT good financial condition. He indicated the District would meet the required 1.35 to 1 debt ratio in both the water and sewer divisions and that the sewer debt ratio would be 1.48 to 1 and the water would be 6.28 to i and 2.37 to 1. He did point out that if the Council of the City of San Bernardino increased the City's monthly sewer service charge as the local papers indicated their administrative staff had recommended they do, the District should be in a position to take the necessary action for the District. President Stallwood asked what would be the implications if the District did not meet the required ratio? Ken Patterson replied future Bond Issues could be affected since issues are based on how well the District met past commit- ments. President Stallwood complimented the Staff and Employees of the District on a job well done. SELECTION OF AUDITORS Director Littleton brought up the possibility of FOR FISCAL YEAR 1973 interim work to be done by the Auditors. Ken Patterson said this had been mentioned previously and sometimes met with favor and sometimes not. After some discussion President Stallwood suggested that hereafter the Auditors be brought in earlier for interim work in April or May and the Audit be completed and presented to the Board the middle or last of August for approval. Ken Patterson then commented this would be more convenient to both District and CPA's and an earlier completion of the Audit could be accomplished. MOTION Upon motion by Director Wall, duly seconded by Director Littleton and carried unanimously, Eadie & Payne CPA's were selected as District Auditors for the Fiscal Year ending June 30, 1973 and are to do necessary interim work as required. 1 10/10/72 October 10, 1972 [~)~9 SEWER NEGOTIATIONS Kenneth Patterson, member of the Sewer Negotiating STATUS REPORT BY Committee reported on the status of the Sewer KEN PATTERSON Negotiations - a proposed modification of the Joint Powers Agreement between the District and City of San Bernardino. Mr. Patterson advised that the City might and could well increase the sewer charges wherein the District would be in a real bind. The Administra- tive Staff of the City had recommended the City "up" their rate from $1.50 to $3.50. If the City does raise the rate by approximately $2.00, this District could be under a heavy burden financially. Ken Patterson made the following recommendations: 1. Continue on all. fronts a resistance to the proposed increase. 2. Make contingency plans in event City does go thro' with increases. He reminded the Board that all revenue the District has raised so far has been by service charges but now other avenues would have to be explored i.e. Tax Rate 3. Go to a Tax Rate Sewer Charge. At present the District Sewer is only financed by those connected to the system and much of the District's indebted- ness is Bonded Indebtedness; this indebtedness is paid by only the current users of the system while the unimproved properties adjacent to sewers and others, pay no cost. He pointed out that the District has an assessed value of approximately $80,000,000; based on a 10¢ Tax Rate, it would generate some $80,000.00 revenue. In terms of 50¢, $400,000.00 would be generated. He further pointed out that for each 50¢ the City increases their sewer rate, the District will pay an $80,000.00 increase annually .to the City of San Bernardino. If the City of San Bernardino should raise their sewer rate, the District should be prepared to meet the increase with a Tax Rate Plan or Sewer Rate Adjustment of its own. If the District were to con- sider the Tax Rate Plan, it is necessary to plan well in advance as there are certain date deadlines to get on the County Tax Rolls. If the City of San Bernardino raises the rate in the year 1973, it may take another year for the District to receive money from the Tax Rate Plan. As an alternate, he pointed out the District may want to immediately plan a Modest Tax Rate so that it could have $200,000.00 or $300,000.00 in a fund as backlog for contingency plans. MOTION Upon motion by Director Forrest, duly seconded by Director Littleton and carried unanimously, the President is to appoint a Committee to study the sewer financing problem and various methods for securing the necessary funds for operation of the sewer Division by setting regular meetings and making specific plans in anticipation of the raise by the City of San Bernardino. SEWER COMMITTEE President Stallwood appointed Director Forrest, EXPANDED FOR Director Wall, General Manager Rickert, Auditor SPECIAL STUDY Hendricks and Atty Farrell to carry out content of above motion, most of whom are members of the Sewer Committee. 2 10/10/72 October 10, 1972 SEWER NEGOTIATIONS Ken Patterson continued by suggesting that the STATUS REPORT BY District would be well advised to be informed KEN PATTERSON (CONT'D) when the City of San Bernardino has an proposed Sewer Rate Changes on their Agenda so that a District Representative could be present at the meeting to explain District's position in the matter. Director Littleton then suggested several methods by which the District could be informed by the City of San Bernardino -- 1. Letter to City Council requesting advice. 2. Direct approach to the Council Members. 3. Letters to City Council - Board Approval Ken Patterson advised that the District should have a written memorandum of the District's position that could be presented to the City of San Bernardino in the event there might be a last minute notification of the City Council considering a sewer rate increase. This would allow the District's representative to make a good presentation. MOTION Upon motion by Director Littleton, duly seconded by Director Wall and carried unanimously, the Sewer Negotiating Committee was requested to prepare a written memorandum to the City Council in the event it was needed, to be approved by the Board at a later Board Meeting. EXECUTIVE MEETING At this point Director Forrest requested of the CALLED ~ President that an Executive Meeting be called ~ ,~ ~he_~c~r~lc.~cr~ ~L-'a--t--~_~d for ~ purposes of dzscusszng pending lztzgatzon. CORRESPONDENCE LAFC NOTICE OF HEARINGS The General Manager presented the information 10/11/72 ANNEXATION contained in LAFC Notices - 1213 located N/o LAFC 1213 & 1214 Baseline W/o Yates and - 1214 located S/o Date St. W/o Del Rosa using maps and discussing the method and plan used by the City to accomplish these types of annexations. REPORTS (CONTINUED) CHANGE ORDER NO. 1 The General Manager explained the background PYLON, INC. CONTRACT of items contained in Change Order No. 1 for $5,162.44 Pylon, Inc. stating that in a recent meeting with Pylon representatives, ESBCWD Staff and District's Consulting Engineers, the changes had been considered necessary. The General Manager and Asst. Manager through a memorandum he prepared recommended that the Board approve sarae. MOTION Upon motion by Director Wall, duly seconded by Director Disch, Change Order No. 1 to the Pylon, Inc. Contract in the amount of $5,162.44 was approved and authorization given President and Secretary to execute said Change Order. FINANCIAL REPORT A copy of the August 1972 Financial Report for WATER & SEWER DIV. Water and Sewer Divisions of the District was AUGUST, 1972 given to each Board Member. The Comparison Schedules were discussed and Auditor Hendricks clarified several points for Board Members. Report for information only. 3 10/10/72 October 10, 1972 i991 COMMITTEE REPORT A copy of a Memorandum dated October 4, 1972 ON AB 1693, RE from the Committee appointed by President FOUR MONTHLY Stallwood to review possible additional Board BOARD MEETINGS Meetings, namely, four Monthly Meetings, as a result of AB 1693 of March 15, 1972 was given Board Members. Director Wall, Chairman, reviewed the contents of the report which recommends that the two additional Board Meetings per month be on the 1st and 3rd Monday afternoons at 5:15 P.M. and also at the start of the proposed new schedule the meeting on the 2nd and 4th Mondays would be moved up to 7:00 P.M. instead of 7:30 P.M. Discussion and questions ensued. At this time an effective date is not known. The General Manager mentioned the necessity (covered in the report) of changing District Ordinance #275. Director Wall stated Professional Consultants would not be required to attend afternoon meetings unless specifically so directed. MOTION Upon motion by Director Disch, duly seconded by Director Forrest, the recommendations of the Committee were accepted and authorization given the General Manager and Legal Counsel to prepare necessary Ordinance. PERCENT OF AREA OF The Board had been advised in the Agenda the DISTRICT WITHIN percentage of Area of District within the City of CITY OF SAN BDNO San Bernardino. The General Manager pointed out the method of Annexation between the ESBCWD and the City of San Bernardino was extremely different which gave the City of San Bernardino a consider- able advantage in Annexations. Attorney Farrell made some comments regarding his views in connection with this information. MOTION Upon motion by Director Disch, duly seconded by Director Forrest and carried unanimously, Legal Counsel was authorized to prepare and forward a letter to LAFCO of San Bernardino County inquiring under what law they can request the District to initiate an annexation to include all such lands being annexed to the District, for service, abutting, adjacent, or otherwise, to the City of San Bernardino or if separated to require the owners sign a waiver to annex such lands to the City of San Bernardino at a later date when the City of San Bernardino boundaries reach that location. IDA CONVENTION Director Forrest brought the matter of the IDA Nov. 28 DEC. 1 Convention in November to the attention of the BEVERLY HILTON Board. Convention to be held November 28 through HOTEL, BEVERLY December 1, 1972 at Beverly Hilton Hotel, Beverly HILLS Hills, California. MOTION Upon motion by Director Forrest, duly seconded by Director Disch and carried unanimously, authoriza%ion was granted for attendance to the IDA Convention November 28 through December 1 at District expense to any Board Member or Staff Member who would be able to attend. UNFINISHED BUSINESS REQUEST FOR Consulting Engineer Halwes presented a report on APPROVAL OF PLANS the Plans and Specifications for the East Highland & SPECIFICATIONS Area Sewer Trunkline advising the following: FOR EAST HIGH- LAND SEWER 1. Contract would be approximately 90 days. TRUNKLINE 2. Pointed out on the map the area and possible JOB S-819 stages to be preferred, explaining timing and costs. 3. Presented the alignment of the sewer trunk lines included in this project. 4. Advised best dates for installation of line was between April 15, 1973 and October 15, 1973. 4 10/10/72 October 10, 1972 EAST HIGHLAND SEWER Mr. Halwes answered several inquiries by TRUNKLINE CONTINUED Board Members and stated Plans and Speci- fications were ready with minor modifications for acceptance by the Board and asked for Board's approval until such time as the Board indicated when the project could be bid, opened and constructed. MOTION Upon motion by Director Littleton, duly seconded by Director Forrest and carried unanimously, approval was given for the plans and specifi- cations for the East Highland Sewer Trunk Line and to hold the bid opening until further notice. DIRECTOR FORREST Director Forrest advised it was necessary LEFT MEETING for him to leave the meeting at 9:25 P. M. DIRECTORS COMPLETED General Manager Rickert stated that Director's FORMS FOR ELECTION TO Election of Membership to State of California PUBLIC EMPLOYEES Public Employees Retirement System forms had RETIREMENT SYSTEM been received, distributed and the signed SUBMITTED copies returned by each Director this date and would be forwarded to PERS in Sacramento. Auditor Hendricks answered questions of the Board Members to clarify a few points. Fore- going was information only. DIRECTOR WALL LEAVES Director Wall previously informed the Board MEETING of the necessity for him to leave the meeting at 9:30 P. M. SMALL CLAIMS NOTICE The General Manager explained the circumstances HIGHLAND JUDICIAL DIST. of the asserted water damage Calim of Shirley ASSERTED WATER DAMAGE St. Myers that the District had denied as SHIRLEY ST. MYERS a result of its insurance carrier recommend- OCTOBER 19, 1972 ation. President Stallwood called upon Attorney Farrell who suggested the District follow past procedures and appear in Court to defend this action and asked authorization to prepare defense stating the General Manager was the logical person to appear for the District since he was aware of all facts of the problem. MOTION Upon motion by Director Littleton, duly seconded by Director Disch and carried unanimously, the recommendation of attorney Farrell was accepted with authorization to prepare an answer to the Summons and the General Manager was requested to appear on October 19, 1972. NEW BUSINESS CALL BIDS SET FOR Authorization was requested by the General WATER MAINS WITHIN Manager to call for and open bids for Water TRACT 8630 Mains and Appurtenances within Tract No. 8630 located east of Sterling Avenue between Marshall Blvd. and Lynwood Drive, on October 24, 1972 at 7:30 P. M. at the District Office. He pointed out the District has received the funds for permits, line extension and conmection fees and pointed out that the water shares are to be forthcoming as result that they have been transferred from the grower to the developer who in turn is in the process of conveying to the District. MOTION Upon motion by Director Littleton, duly seconded by Director Disch and carried unanimously by those Directors present, authorization was granted for Staff to call for and open bids for install- ation of water lines within Tract 8630 on October 24, 1972 at 7:30 P. M. at District Office. 5 10/10/72 October 10, 1972 i1993 AUTHORIZATION FOR The General Manager requested authorization for ADDITIONAL LIGHTING additional lighting in District yard on new IN DISTRICT YARD section in rear on Alamo Street from Southern California Edison Company at $4.80 per montk. He said lighting was inadequate and recommended additional lighting. MOTION Upon motion by Director Disch, duly seconded by Director Littleton and carried unanimously by those Directors present, authorization was granted to contract with Southern California Edison Company for additional lighting in District yard as recommended by the General Manager. ALTERNATE DIRECTOR Each Director was given a copy of excerpt of RECOMMENDED FOR By-Laws of California Special Districts Assoc- CSDA BOARD iation Article III (Directors) Section I. Number and Term of Office; concluding two sentences regarding appointment of Alternate Director. MOTION After a motion by Director Disch, President Stallwood relinquished the Chair to permit him to second the motion and motion carried unanimously by those Directors present, in accordance with the By-Laws of CSDA that Director Littleton be appointed as an Alternate Director for CSDA in absence of Director Wall and that CSDA be advised with a certified copy of the motion. HOLIDAY CHANGES NEXT The Secretary announced that since the next REGULAR BOARD MEETING Regular Meeting of the Board of Directors of DATE this District falls on the holiday of Veterans Day, October 23, the Regular Meeting will be held on the next working day, October 24, 1972, all in accordance with the Government Code, Section 54954 and he would post a Notice to this effect as required by law. DIRECTORS FIELD The General Manager recommended that the TRIP OCTOBER 13 Directors field trip be set for Friday, October 13, 1972 at 3 P. M. This was information only and would be for the purpose of inspecting the new facilities at Plants 11, 12, 28 and 40 constructed under the 1965 Water Revenue Bond issue. REQUEST FOR EXTENSION The General Manager recommended that extension OF TIME FOR COMPLETION of the completion date for C/T Pumps Inc. OF BOOSTER STATION BY Contractors for construction of East Highland C/T PUMPS Area Booster Pumping Station, Plant No. 104 since the Constractor could not complete the project due to inability of Southern Calif. Edison Company to secure an easement needed to make their installation and he recommended time extension be granted. MOTION Upon motion by Director Disch, duly seconded by Director Littleton and carried unanimously by those Directors present, authorization for extension by C/T Pumps Inc was granted until October 20, 1972. ADJOURNMENT There being no further business to come before the general meeting, adjournment was declared at 10 P.M. ~~'R~ aro . lc ert, Secretary Board of Directors Approved R. E. Stallwood, President 6 10/10/72