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HomeMy WebLinkAbout2022-02-22 - Board of Directors Meeting MinutesMINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, February 22, 2022, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 5:30 p.m. 3. PLEDGE OF ALLEGIANCE President Miller led the pledge. 4. ROLL CALL DIRECTORS PRESENT J. Wayne Miller, PhD, President Brooke Jones, Vice President Trudi DesRoches Phil Hawkins Tom Lindsey 2022-024 STAFF PRESENT Doug Davert, Assistant General Manager John DeCriscio, Operations Manager Gina Knight, Human Resources and Risk Manager Delia Lugo, Finance Manager Rosanne Weston, Engineering Manager Alison Martin, Public Affairs Manager Annie Alexander, Board Secretary Paige Appel, Budget Analyst Veronica Ortega, Executive Assistant ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. PUBLIC COMMENTS None. 6. DISCUSSION ITEMS 6.1. Hidden Hills Booster Pump Station Upgrade Project Staff reviewed the purpose of the project and explained that the bids for construction were significantly higher than the engineer's estimate prepared by the developer for Cielo Vista. Minutes of the YLWD Board of Directors Workshop Meeting Held February 22, 2022 at 5:30 p.m. 2022-025 Staff is working with the developer to obtain a construction timeline and will update the Board as additional information is received. Staff also commented on the increased costs for labor and materials associated with other District projects. 6.2. Mid -Year Financial Review and Year End Projections for Fiscal Year 2021-22 Staff noted that an updated version of the presentation had been distributed at the beginning of the meeting. Staff then reviewed fiscal year-end projections for consolidated revenue and expenses, debt service ratio (water fund), and volumetric water consumption. This included an analysis of revenue from water consumption, an analysis of consolidated operating and non-operating revenue, and an overview of variances due to rainfall and voluntary water conservation. Al Nederhood, resident, commented on the revenue analysis and the impact of rates on customer water consumption. Staff then reviewed projected water production demand versus budget, variable costs and percent allocation, pass-through expense requirements and limitations. Al Nederhood, in his role as MWDOC Director, commented on the agency's pass-through expenses which are passed on to YLWD. Staff then reviewed projected salary -related expenses, supplies and services expenses, and variances for contractual, maintenance, and professional services. 6.3. Capital Improvement Plan Mid -Year Review and Year End Projections for Fiscal Year 2021-22 Staff reviewed the status of current capital improvement projects and budgeted versus projected expenses at fiscal year-end. Staff explained that some projects had been reprioritized due to increasing costs and noted that the scope of work for the Timber Ridge Booster Pump Station Pump Replacement Project had been expanded. Discussion followed regarding the age of the original engineer's estimates and cost projections for some of the projects in the capital improvement plan. Al Nederhood, resident, commented on OCWD's projected increase of the basin production percentage, the District's inability to utilize a higher percentage, associated factors incorporated in the District's most recent water/sewer rate study, and the District's capital improvement plan. Minutes of the YLWD Board of Directors Workshop Meeting Held February 22, 2022 at 5:30 p.m. 2022-026 Staff explained the capacity limitations of the District's groundwater treatment plant and efforts to maximize groundwater production. 6.4. Board of Directors' Goals and Objectives for Fiscal Year 2022-23 Operating Budget Staff reviewed key assumptions incorporated in the rate study model as compared to anticipated increases in general operating expenses and fixed/variable water costs. Discussion touched on obtaining clarification from general counsel regarding eligible pass-through expenses, and options for restructuring the District's capital improvement plan. Director Lindsey left the meeting at 6:57 p.m. Discussion continued regarding the debt issuance process, retirement of the District's line of credit, and percentage adjustment limitations for capital finance charges being collected on the property tax roll. Al Nederhood, resident, commented on the possibility of advance refunding previous debt issued by the District. In closing, staff recommended following the adopted schedule for proposed rate adjustments for the next fiscal year as identified in the District's most recent water/sewer rate study. Brief discussion followed regarding topics to be covered by bond counsel during disclosure training at a future Board meeting. 7. ADJOURNMENT 7.1. Director Hawkins made a motion, seconded by Director Jones, to adjourn the meeting at 7:16 p.m. Motion passed 4-0-0-1 on a roll call vote with Director Lindsey absent. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Workshop Meeting Held February 22, 2022 at 5:30 p.m.