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Home My WebLink AboutMinutes - EVWD Board of Directors - 09/26/2012Approved October 24, 2012 EAST VALLEY WATER DISTRICT SEPTEMBER 26, 2012 REGULAR BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 5:30 p.m. Director Wilson led the flag salute. PRESENT: Directors: Coleman, LeVesque, Morales, Sturgeon, Wilson ABSENT: Directors: None STAFF: John Mura, General Manager/CEO; John Vega, Assistant General Manager; Brian Tompkins, Chief Financial Officer; Cecilia Contreras, Executive Assistant LEGAL COUNSEL: Steve Kennedy GUEST(s): Members of the public APPROVAL OF AGENDA Pursuant to Government Code Section 54954.2(b)(2), the Board added the following item on the closed session agenda for the meeting after unanimously determining that that there is a need for immediate action which arose after the agenda was posted. PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE (Government Code Section 54957) M/S/C (Wilson-Morales) that the September 26, 2012 agenda be approved as amended. PUBLIC PARTICIPATION Chairman LeVesque declared the public participation section of the meeting open at 5:31 p.m. Mr. Michael Henderson stated that he has been with the District for 16 years and with the incoming General Manager and Assistant General Manager, the changes are making it easier to work. Mr. Kennedy arrived to the meeting at 5:32 pm. Ms. Martha Duran stated that she has been with the District for 23 years and that she can see the light at the end of the tunnel with a new headquarters building. There being no further written or verbal comments, the public participation section was closed. Minutes: 09/26/12 cmc APPROVAL OF BOARD MEETING MINUTES FOR AUGUST 22, 2012 M/S/C (Wilson-Morales) that the board meeting minutes for August 22, 2012 be approved as submitted. APPROVAL OF THE BOARD MEETING MINUTES FOR SEPTEMBER 12, 2012 M/S/C (Wilson-Morales) that the board meeting minutes for September 12, 2012 be approved. DISBURSEMENTS M/S/C (Wilson-Morales) that General Fund Disbursements #233952 through #234112 distributed during the period of September 6, 2012 through September 19, 2012 in the amount of $904,689.32 and Payroll Fund Disbursements for the period ending September 19, 2012 in the amount of $252,802.49 totaling $1,157,491.81 be approved. AWARD OF AGREEMENT TO BALFOUR BEATTY CONSTRUCTION TO PROVIDE DESIGN-BUILD-FINANCE SERVICES FOR THE NEW DISTRICT HEADQUARTERS AND TO AUTHORIZE THE GENERAL MANAGER TO NEGOTIATE THE COST OF AGREEMENT BASED ON THE APPROVED CONCEPT AND DESIGN OF THE DISTRICT HEADQUARTERS The General Manager/CEO gave on overview of the current headquarters and the steps and changes that the District has taken including but not limited to: • The current lease at Highland and Palm Ave. • Strategic Plan o Key Performance Indicators • Property chosen for future site o Analyses done • Request for Qualifications sent out in August for a contractor to Design-Build- Finance • Interviews were held for the four (4) most qualified candidates The General Manager/CEO stated that after careful consideration, the recommendation is to enter into an agreement with Belfour Beatty Construction. The team from Balfour Beatty Construction was introduced to the Board. The Board of Directors discussed the award of contract for the headquarters project at great length. The team from Balfour Beatty collectively answered a number of questions relating to the headquarters project. Minutes: 09/26/12 cmc 2 Mr. Kennedy stated that the Request for Qualifications document included a copy of the contract agreement; that there should be no modifications to the agreement and there is language included with respect to surety and indemnification. M/S/C (Morales-Wilson) to select Balfour Beatty Construction to provide design- build-finance services for the new District Headquarters and to authorize the General Manger to negotiate the cost of agreement based on the approved concept and design of the District Headquarters. A roll call vote was taken: Board member Coleman voted Yes. Board member Sturgeon voted No. Board member Wilson voted Yes. Vice Chairman Morales voted Yes. Chairman LeVesque voted Yes. The Board took a break at 6:59 pm. The Board returned to session at 7:07 pm. DISCUSSION REGARDING THE DISTRICT’S INVESTMENT POLICY The General Manager/CEO stated that the District’s Financial Investment team will provide an update on the District’s investments, allocations, and adjustments. The Chief Financial Officer stated that the investment policy is reviewed each year; that the Strategic Initiatives and Key Performance Indicators help pursue better investments. Mr. Richard McDonald and Mr. Bob Swan gave an overview of the Districts overall portfolio. Board member Coleman inquired about how much could the District yield if we went through California Code. Vice Chairman Morales stated that the fiscal policy that is in place settled on this prudent policy which helped the District achieve a AA- Fitch rating. Chairman LeVesque stated that he is comfortable with the fiscal policy as it is, and recommends that the policy be reviewed annually and that this item should be added to the next board meeting agenda. Information only. GENERAL MANAGER / STAFF REPORTS The General Manager/CEO, Assistant General Manager and CFO reported on the following items: • New sewer vactor purchased Minutes: 09/26/12 cmc 3 • Invitation from California Department of Public Health to submit a construction grant application for Plant 150 • Reporting of pensions by Governmental agencies Information only. LEGAL REPORT No report at this time. Information only. ORAL COMMENTS FROM THE BOARD OF DIRECTORS Vice Chairman Morales congratulated Board and staff on the bold move towards a new headquarters facility. Vice Chairman Morales commended staff for the bar-b-q trailer and lunch that he had attended; that he wanted the Board to understand that at the Legislative & Public Affairs Committee meeting his decision was to bring the branding efforts and new logo to the full Board for review and discussion. Board Member Sturgeon apologized for his comments made in regards to military bases and was not trying to offend anyone; that he feels that the countdown clock can hinder our ability to negotiate, and the new headquarters contractor will have a hold on the District; that the District should try and negotiate an arrangement with the landlord as a backup if the new building is not completed by the end of the current lease. Board member Coleman stated that the District is moving forward tremendously; that he appreciated staff asking Balfour Beatty to attend the meeting so that they can answer any questions the board members had. Chairman LeVesque stated that this is another step in the right direction; that the agreement with the contractor is keeping the strategic planning process that was agreed to in April; that any items discussed in committee meetings will be brought to the full board for discussion and approval before any decisions are made. Information only. CLOSED SESSION The Board entered into Closed Session at 8:02 p.m. as provided in the California Open Meeting Law. Government Code Section 54945.9(a), to discuss the items listed on the agenda. ANNOUNCEMENT OF CLOSED SESSION ACTIONS The Board returned to regular session at 8:33 p.m. The items listed on the agenda were discussed in closed session with the follow action being taken: Minutes: 09/26/12 cmc 4 With respect to item #8: - No reportable action taken. With respect to item #9: - The Board unanimously authorized President LeVesque to execute the written decision that was prepared following the oral decision previously issued by the Board in connection with the personnel matter. ADJOURN The meeting adjourned at 8:33 p.m. _________________________ Matt LeVesque, President _________________________ John J. Mura, Secretary Minutes: 09/26/12 cmc 5