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Home My WebLink About2021-04-13 - Board of Directors Meeting Minutes 2021-027 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, April 13, 2021, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. TELECONFERENCE INFORMATION As noted on the agenda, this meeting was facilitated via teleconference pursuant to Paragraph 3 of Executive Order N-29-20 issued by the Governor of California on March 17, 2020. 2. CALL TO ORDER The meeting was called to order at 6:33 p.m. 3. PLEDGE OF ALLEGIANCE President Hawkins led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Phil Hawkins, President Brett R. Barbre, General Manager J. Wayne Miller, PhD, Vice President (Joined at 6:35 p.m.) Doug Davert, Asst General Manager Trudi DesRoches John DeCriscio, Operations Mgr Brooke Jones Gina Knight, HR and Risk Manager Tom Lindsey Delia Lugo, Finance Manager Rosanne Weston, Engineering Mgr Annie Alexander, Board Secretary Paige Appel, Budget Analyst Veronica Ortega, Executive Asst ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA None. Minutes of the YLWD Board of Directors Regular Meeting Held April 13,2021 at 6:30 p.m. 1 2021-028 6. PUBLIC COMMENTS None. 7. INTRODUCTIONS AND PRESENTATIONS 7.1. Elected Official Liaison Reports MWDOC Director Al Nederhood indicated he had no report and was participating in the meeting as a District resident. Yorba Linda Council Member Gene Hernandez reported on reopening of the Yorba Linda Public Library and a new development project. 7.2. Refund from ACWA-JPIA's Rate Stabilization Fund ACWA-JPIA Executive Committee Member Melody McDonald thanked the Board for supporting her re-election, provided a brief overview of the rate stabilization fund, and noted that a refund of $127,932.88 had been sent to the District. 8. ACTION CALENDAR 8.1. Request for Concurring Nomination Resolution Staff reviewed the purpose of the request and indicated that VID Director Jo Mackenzie had intended on participating in the meeting to address the Board. As Director MacKenzie was not yet present, the Board deferred consideration of this item in case she was able to join later on in the meeting. 8.2. 2021 Rate Study Report and Notice of Public Hearing, Guidelines for the Conduct of Proposition 218 Public Hearings, and Discontinuation of Flexible Water Shortage Penalty Structure Staff reviewed the District's current water distribution system infrastructure, components of the proposed rate structure, assumptions included in the rate model for the water and sewer enterprises, historical water meter and commodity rates, the proposed rates and charges for FYS22-26, and the impact on an average customer with a 1" water meter. Staff then provided an overview of financing mechanisms utilized for construction of the District's reservoirs and booster pump stations and their 2018 replacement value, and noted that the proposed rate structure would realign the District's capital improvement projects with the Asset Management Plan and strengthen reserves. Minutes of the YLWD Board of Directors Regular Meeting Held April 13, 2021 at 6:30 p.m. 2 2021-029 Staff again reviewed components of the proposed rate structure, projected reserves, and recommendations to the Board. Staff noted that a few minor edits had been made to the narrative in the rate study report as deemed necessary in consultation with Raftelis and the District's general counsel, and that one member of the public had submitted a written comment related to this item. President Hawkins opened the floor to public comment. Al Nederhood, resident, commented on the District's expenditures and debt financing for capital improvement projects, and points included in correspondence he submitted to the Board related to the proposed rate structure. He also spoke in favor of a lower rate adjustment. Director Jones reviewed some calculations he prepared related to the proposed rate structure and the monthly impact on customers utilizing 2, 18, and 36 units of water. He also presented some alternative rate scenarios. Discussion followed regarding the community's responsiveness to drought conditions, assumptions included in the rate model and future monitoring, and the procedure for considering future rate adjustments following the adoption of a rate schedule. Director Miller made a motion, seconded by Director Lindsey, to receive and Ne the 2021 Rate Study Report. Motion carried 4-1-0-0 on a roll call vote with Director Jones voting No. Director Miller made a motion, seconded by Director DesRoches, to approve the notice of proposed water and wastewater rate adjustments and schedule a virtual public hearing for Tuesday, June 8, 2021, at 6:30 p.m. Vice President Miller asked whether the motion needed to specify that the public hearing would be held virtually. General Counsel Gagen clarified that the notice would need to indicate how the public hearing would be facilitated, either virtually, in-person, or both. Director Miller repeated his original motion, which was seconded by Director DesRoches. Motion carried 4-1-0-0 on a roll call vote with Director Jones voting No. Director Lindsey made a motion, seconded by Director Miller, to adopt Resolution No. 2021-XX adopting guidelines for the conduct of Proposition 218 public hearings. Motion carried 4-1-0-0 on a roll call vote with Director Jones voting No. Minutes of the YLWD Board of Directors Regular Meeting Held April 13. 2021 at 630 p.m. 3 2021-030 Director Jones made a motion, seconded by Director DesRoches, to adopt Ordinance No. 2021-XX repealing Ordinance No. 16-01 and discontinuing the flexible water shortage administrative penalty structure. Motion carried 5-0-0-0 on a roll call vote. 8.3. Federal and State Legislation Update and Positions on State Legislation Eric O'Donnell, Senior Associate from Townsend Public Affairs, briefed the Board on the legislative calendar, timeline for adopting the Governor's budget proposal, details and status of relevant pending legislation, and efforts to secure state and federal funding for construction of additional heli- hydrants. Staff reviewed their recommended positions on AB 58, AB 339, AB 818, AB 1434, SB 222, and SB 223. Director Jones made a motion, seconded by Director Lindsey, to take the following positions on state legislation: AB 59 (Gabriel) — Oppose, AB 339 (Lee) — Oppose, AB 818 (Bloom)— Support, AB 1434 (Friedman) — Oppose Unless Amended, SB 222 (B. Dodd), D-SD3) — Oppose Unless Amended, SB 223 (B. Dodd, D-SD3) — Oppose Unless Amended. Motion carried 5-0- 0-0 on a roll call vote. 9. CONSENT CALENDAR Director Jones requested to remove Item Nos. 9.7, 9.10, and 9.12 from the Consent Calendar for separate consideration. Director Jones made a motion, seconded by Director Miller, to approve the remainder of the Consent Calendar. Motion carried 5-0-0-0 on a roll call vote. 9.1. Minutes of the Board of Directors Regular Meeting Held February 23, 2021 Recommendation: That the Board of Directors approve the minutes as presented. 9.2. Minutes of the Board of Directors Regular Meeting Held March 9, 2021 Recommendation: That the Board of Directors approve the minutes as presented. 9.3. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$2,753,412.32. Minutes of the YLWD Board of Directors Regular Meeting Held April 13,2021 at 6:30 p.m. 4 2021-031 9.4. Budget to Actual Reports for the Month Ending February 28, 2021 Recommendation. That the Board of Directors receive and file the Budget to Actual Reports for the Month Ending February 28, 2021. 9.5. Cash and Investment Report for Period Ending February 28, 2021 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for Period Ending February 28, 2021. 9.6. Update Securities Custody Agreement with US Bank for District Investments Recommendation: That the Board of Directors adopt Resolution No. 2021- XX authorizing the establishment of securities custody agreements with US Bank for District investments and rescinding Resolution No. 18-04. 9.8. Ratifying the Budgeted Positions for the Remainder of Fiscal Year 2021 and Amending Exhibits in the Yorba Linda Water District Employee Association Memorandum of Understanding Recommendation: That the Board of Directors: (1) adopt Resolution No. 2021-XX ratifying amendments to the budgeted positions for the remainder of Fiscal Year 2021; and (2) adopt Resolution No. 2021-XX amending Exhibit A of the Yorba Linda Water District Employees Association Memorandum of Understanding for the remainder of Fiscal Years 2021- 2023. 9.9. Award of Construction Contract for Well 11 Abandonment Recommendation: That the Board of Directors award the Construction Contract for the Well 11 Abandonment Project to General Pump Company for$59,840.00, Job No. 202052. 9.11. Notice of Completion for the Emergency Repairs Project at Aviemore Drive and Deveron Cove, Job No. 202062 Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for the Emergency Repairs Project at Aviemore Drive and Deveron Cove. Minutes of the YLWD Board of Directors Regular Meeting Held April 13,2021 at&30 p.m. 5 2021-032 ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION Staff responded to questions from Director Jones regarding the following items. Director Jones made a motion, seconded by Director DesRoches, to approve Item Nos. 9.7, 9.10, and 9.12. Motion carried 5-0-0-0 on a roll call vote. 9.7. Claim for Damages Filed by Hari Yarramreddy Recommendation: That the Board of Directors reject and deny the claim filed by Hari Yarramreddy. 9.10. Terms and Conditions for Water Services with Richfield Properties LLC, 736 Richfield Road, Job No. 202108 Recommendation: That the Board of Directors approve Terms and Conditions for Water Service with Richfield Properties LLC, 736 Richfield Blvd, Job No. 202108. 9.12. Temporary Moratorium on Leases, Encumbrances, and Encroachments on District Real Property Recommendation; That the Board of Directors adopt a temporary 18-month moratorium on new leases, encumbrances and encroachments on District real property pending a thorough review and analysis of the District's future needs, security concerns, operational issues, water quality and treatment requirements and evolving regulatory obligations. 10. ACTION CALENDAR CONTINUED 10.2. New Heli-Hydrant at Camino de Bryant Reservoir Staff reviewed the recommendations for this project, specifics regarding the location and adjacent reservoir, the project scope and estimated expenses, and additional fire hardening efforts at the heli-hydrant adjacent to the Santiago Reservoir. Yorba Linda Council Member Gene Hernandez commended the District for pursuing this project. Staff also expressed appreciation for OCFA's support for this project and responded to questions from Directors regarding sole-sourcing of the tank and potential funding opportunities for construction of additional heli- hydrants. Minutes of the YLWD Board of Directors Regular Meeting Held April 13,2021 at 6:30 p.m. 6 2021-033 Director Miller made a motion, seconded by Director Jones, to authorize: (1) construction of the second YLWD heli-hydrant with adjacent helicopter emergency landing zone; (2) the expenditure of an amount not to exceed $400,000.00 in Capital Improvement Project (CIP) funds for this project; (3) sole-sourcing of the heli-hydrant equipment and installation to Whaling Fire Line Equipment, Inc.; and (4) naming the facility the "Wells Fargo Heli- Hydrant and Landing Zone" Motion carried 5-0-0-0 on a roll call vote. 11. DISCUSSION ITEMS 11.1. Status of Engineering Activities and Construction of Per-and Polyfluoroalkyl Substances (PFAS) Removal Groundwater Treatment Plant Staff briefed the Board on the status of engineering projects and construction of the treatment plant. 12. REPORTS, INFORMATION ITEMS, AND COMMENTS 12.1. Director's Reports A list of meetings and events attended was included in the agenda packet. 12.2. General Manager's Report General Manager Barbre stated that he would email his report to the Board. 12.3. General Counsel's Report None. 12.4. Future Agenda Items and Staff Tasks As VID Director Jo Mackenzie was unable to join the meeting, Item No. 8.1 will be carried over to the next regular meeting if she still desires to address the Board. 13. COMMITTEE REPORTS 13.1. Interagency Committee with MWDOC and OCWD (Hawkins/Des Roches) — Next meeting will be scheduled when needed. 13.2. Joint Agency Committee with City of Yorba Linda (Hawkins/Lindsey) — Draft minutes of the meeting held Monday, March 1, 2021 at 4:00 p.m. were included in the agenda packet. Next meeting is scheduled Monday, June 7, 2021 at 4:00 p.m. Minutes of the YLWD Board of Directors Regular Meeting Held April 13,2021 at 6:30 p.m. 7 13.3. Joint A �4. B (Miller/�inasey corn . 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