HomeMy WebLinkAbout2019-08-27 - Board of Directors Meeting Minutes (B) 2019-085
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, August 27, 2019, 2019, 6:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 6:30 p.m.
1.1. TELECONFERENCE SITE
4869 Royal Coachman Dr, Elkridge MD 21075
2. PLEDGE OF ALLEGIANCE
Vice President Hawkins led the pledge.
General Counsel Andrew Gagen indicated that Director Nederhood was
participating via teleconference and that the meeting was being conducted
pursuant to GC § 54953. He noted that the teleconference location had been
identified in the notice and agenda for this meeting in accordance with the Ralph
M. Brown Act.
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Brooke Jones, President Marc Marcantonio, General Manager
Phil Hawkins, Vice President Brett Barbre, Assistant General Manager
Andrew J. Hall (Arrived 6:37 p.m.) John DeCriscio, Operations Manager
J. Wayne Miller, PhD Gina Knight, Human Resources and Risk Manager
Al Nederhood (Via Teleconference) Delia Lugo, Finance Manager
Pasquale Talarico, Director of Public Affairs
Rosanne Weston, Engineering Manager
Danielle Logsdon, Senior Engineer
Anthony Manzano, Senior Project Manager
Kaden Young, Senior Mgmt Analyst/Asst Board Secretary
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
Greg Davidson, Director, NBS
Minutes of the YLWD Board of Directors Regular Meeting Held August 27,2019 at 6:30 p.m. 1
2019-086
At Mr. Gagen's request, Director Nederhood confirmed that he could hear at his
location, that he had posted a copy of the agenda at his location, that his location
was reasonably accessible to the public, and that there were no members of the
public present.
4. ADDITIONS/DELETIONS TO THE AGENDA
None.
5. INTRODUCTIONS AND PRESENTATIONS
5.1. Sewer Assessment and Community Facilities Districts
Greg Davidson from NBS provided an overview of the company's history
and services. He then reviewed details of the District's project as a whole,
a sample project, financing options, and estimated costs. Mr. Davidson
also displayed a map identifying 625 parcels on septic within the District's
boundaries, two options for transitioning the parcels to YLWD's sewer
collection system, and the pros and cons of both scenarios.
Discussion regarding the process for setting up a Community Facilities
District followed.
Greg Schultz, resident, commented on the legal requirements and
timeframe for converting parcels on septic systems to sewer service.
John Koeller, resident, thanked Mr. Davidson for his presentation and
thanked staff for their efforts related to this matter. He also commented on
the proposed sample project on Sandra Drive.
The group then discussed alternative financing options to assist parcel
owners, the level of parcel owner interest, and the estimated costs for
proposed polling and outreach efforts.
Staff suggested that if the District was to move forward with this endeavor,
the Board consider amending the District's reserves policy in the 1St
quarter of FY20 to create a restricted reserve for this project.
Mr. Davidson and staff then responded to questions from the Board.
5.2. Elected Official Liaison Reports
None.
Minutes of the YLWD Board of Directors Regular Meeting Held August 27,2019 at 6:30 p.m. 2
2019-087
5.3. Federal and State Legislative Update
Director of Public Affairs Pasquale Talarico briefed the Board regarding
some important dates on the State's legislative calendar, the passage of
Assembly Bill 756, and recent departmental activities.
6. PUBLIC COMMENTS
None.
7. CONSENT CALENDAR
President Jones noted that as Director Nederhood was participating in the
meeting via teleconference, all votes would be taken by roll call.
Director Nederhood and President Jones requested to remove Item Nos. 7.1.
and 7.3. respectively from the Consent Calendar for separate consideration.
Director Hawkins made a motion, seconded by Director Hall, to approve the
remainder of the Consent Calendar. Motion passed 5-0-0-0 on a Roll Call vote.
7.2. Terms and Conditions for Water Service with HQT Homes for Tract 18129
Recommendation: That the Board of Directors approve the Terms and
Conditions for Water Service with HQT Homes for Tract 18129, Job No.
201942.
7.4. Payment of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of$1,148,792.25.
ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION
7.1. Unaudited Financial Statements for Fourth Quarter of FY 2019
Staff responded to questions from Director Nederhood regarding the
ProForma in the Fiscal Year 2019 Unaudited Financial Statements,
ProForma in the Fiscal Year 2020-21 Financial Summaries, and year-end
budget projections for Fiscal Year 2019.
Director Hall made a motion, seconded by Director Hawkins, to receive
and file the Unaudited Financial Statements for Fourth Quarter of FY19.
Motion carried 5-0-0-0 on a Roll Call vote.
Minutes of the YLWD Board of Directors Regular Meeting Held August 27,2019 at 6:30 p.m. 3
2019-088
7.3. Amendment to the Water and Sewer Facilities Agreement Between the
Yorba Linda Water District and North County BRS, LLC for the Cielo Vista
Development Project
A copy of the document was distributed at the meeting. General Counsel
Andrew Gagen reviewed the purpose of the amendment and terms
contained therein.
Director Jones made a motion to defer consideration of this matter to the
regular meeting on September 10, 2019. Motion failed for lack of a
second.
Director Hawkins made a motion, seconded by Director Miller, to approve
the First Amendment to the Cielo Vista Project Water and Sewer Facilities
Agreement dated August 1, 2018, conditioned on the Property Owners'
signatures to the Amendment within 30 days of this approval. Motion
carried 4-1-0-0 on a Roll Call vote with Director Jones voting No.
8. ACTION CALENDAR
8.1. Performance of Water/Sewer Rate Study — Board Questionnaire
The Board provided feedback to staff regarding matters related to the
preparation of a new rate study. The consensus of the Board was as
follows:
■ Engage Raftelis to perform the rate study rather than issue a
Request for Proposals.
■ The period to be covered by the rate study will be 4 years.
■ That Raftelis present two options for the effective date of a
proposed rate adjustment: January 2021 and July 2021.
■ That Raftelis utilize a uniform rate structure with separate rate
structures to address emergencies and potential mandates such as
water treatment.
■ That the rate study focus on maintaining the District's credit rating
at the minimum of AA and maximum of AA+.
■ Debt funding will be issued on a project basis.
■ That future rate adjustments be applied to both the monthly base
fee and water usage charge, not just one category.
■ That all pass-through expenses as legally defined would be
considered eligible for calculating future pass-through adjustments
and consider adding energy adjustments as a pass-through in the
commodity rate (water usage charge).
Minutes of the YLWD Board of Directors Regular Meeting Held August 27,2019 at 6:30 p.m. 4
2019-089
9. DISCUSSION ITEMS
Staff reviewed key information contained in the following financial reports.
9.1. Budget to Actual Reports for the Month Ending July 31, 2019
9.2. Cash and Investment Report for Period Ending July 31, 2019
10. REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1. Directors' Reports
The Directors noted their attendance at the listed meetings and events.
Director Nederhood disconnected from the meeting part way through the
discussion of the following item.
10.2. General Manager's Report
General Manager Marc Marcantonio asked each of the managers to report
on activities within their respective departments.
10.3. General Counsel's Report
None.
10.4. Future Agenda Items and Staff Tasks
President Jones requested an item on a future agenda to discuss debt
funding alternatives for critical Capital Improvement Projects. He also
asked about scheduling a future joint agency meeting with the City of
Placentia and noted that the ballot for the upcoming ACWA Region 10
Election would be on the agenda for the September 10, 2019 regular
meeting.
Director Miller requested staff look into including new, used, and/or rental
backup generators in the 5-year Capital Improvement Plan.
Minutes of the YLWD Board of Directors Regular Meeting Held August 27,2019 at 6:30 p.m. 5
2019-090
11. COMMITTEE REPORTS
11.1. Interagency Committee with MWDOC and OCWD
(Jones/Hawkins)
■ Minutes of meeting held July 25, 2019 at 4:00 p.m. were included in
the agenda packet.
■ Next meeting is scheduled September 26, 2019 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Jones/Hawkins)
■ Next meeting is scheduled September 16, 2019 at 4:00 p.m. at
Yorba Linda City Hall.
11.3. Joint Agency Committee with City of Placentia
(Jones/Hawkins)
■ Next meeting is yet to be scheduled.
12. BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1. Meetings from August 28 — October 31, 2019
The Board made no changes to the activity calendar.
13. ADJOURNMENT
13.1. The meeting was adjourned at 9:29 p.m.
Kade Young
Assis ant Board Secretary
Minutes of the YLWD Board of Directors Regular Meeting Held August 27,2019 at 6:30 p.m. 6