Loading...
HomeMy WebLinkAbout2022-03-22 - Board of Directors Meeting Minutes 2022-036 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Tuesday, March 22, 2022, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 5:33 p.m. 3. PLEDGE OF ALLEGIANCE Vice President Jones led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, PhD, President Doug Davert, Assistant General Manager Brooke Jones, Vice President John DeCriscio, Operations Manager Trudi DesRoches Gina Knight, Human Resources and Risk Manager Phil Hawkins Delia Lugo, Finance Manager Tom Lindsey Rosanne Weston, Engineering Manager Alison Martin, Public Affairs Manager Annie Alexander, Board Secretary Paige Appel, Budget Analyst Danielle Logsdon, Principal Engineer Veronica Ortega, Executive Assistant ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP (Left the meeting at 6:30 p.m.) Kari Vozenilek, Of Counsel, Kidman Gagen Law LLP (Joined the meeting at 6:30 p.m.) 5. PUBLIC COMMENTS None. The Board briefly discussed taking Item No. 8.1. prior to Closed Session. It was determined not to make this change. Minutes of the YLWD Board of Directors Special Meeting Held March 22, 2022 at 5:30 p.m. 2022-037 6. ACTION CALENDAR 6.1. Re-authorizing Continuation of Virtual/Teleconference Board Meetings Director Jones made a motion, seconded by Director DesRoches, to adopt Resolution No. 2022-XX finding and determining that: (1) a state of emergency related to COVID-19 continues to be in effect; (2) state and local officials continue to recommend measures to promote social distancing in connection with COVID-19; (3) due to the COVID-19 emergency, meeting in person could present imminent risks to the health and safety of attendees; and (4) continued remote meetings are hereby re-authorized for the period of March 22, 2022 through April 21, 2022 pursuant to California Government Code Section 54953(e). Motion carried 5-0-0-0 on a roll call vote. 6.2. Identification of Agency Designated Representative(s) for Labor Negotiations Director Hawkins made a motion, seconded by Director Jones, to designate Andrew Gagen, General Counsel, as the District's representative for labor negotiations with the Assistant General Manager. Motion carried 5-0-0-0 on a roll call vote. President Miller opened the meeting to public comment on Closed Session items for which there were none. 7. CLOSED SESSION The Board entered Closed Session at 5:41 p.m. All Directors and General Counsel were present. 7.1. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: Andrew Gagen, General Counsel Unrepresented Employee: Assistant General Manager 7.2. Public Employment Pursuant to Section 54957 of the California Government Code Title: General Manager 7.3. Conference with Legal Counsel — Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Minutes of the YLWD Board of Directors Special Meeting Held March 22,2022 at 5:30 p.m. 2 2022-038 Name of Case: Orange County Water District, et al. v. 3M Company et al. (Orange County Superior Court — Case No. 30- 2020-01172419-CU-PL-CXC) The Board returned to Open Session at 6:38 p.m. President Miller announced that the Board took no reportable action during Closed Session. 8. DISCUSSION ITEMS 8.1. Summary of Draft Budget for Fiscal Year 2022-23, Water Operating Plan, Variable Costs and Revenues, and 5-Year Capital Improvement Plan Staff began the presentation by summarizing communication channels utilized to encourage public participation in the budget workshops, topics covered during the previous workshop, and topics to be covered during this workshop. Staff noted that the draft budget had been prepared to align with the recent water/sewer rate study (rate study) and that in response to increased inflation, projects in the draft 5-year Capital Improvement Plan were reprioritized decreasing the total to $37M, which is lower than the Asset Management Plan's recommendation of $51 M. Staff also commented on increased costs associated with operating the new water treatment plant and the potential need for conducting an additional budget workshop sometime between April 20, 2022 and May 24, 2022. Staff explained that the most recent rate study was prepared using financial data and projections as of January 2021 and that the graphs and tables in the draft budget presentation for Fiscal Year 2022-23 included data from the audited financials for Fiscal Year 2020-01, assumptions from the rate study, and projections for Fiscal Year 2021-22. Staff then reviewed the consolidated financial summary of the FY22-23 draft budget, types of and projections for operating and non-operating revenue, and projected expenses. Staff then reviewed the total water production demand in FY20-21, projected demand for FY21-22, draft budgeted demand for FY22-23, and assumptions included in the rate study. Staff also reviewed how the water production demand budget was calculated, efforts made to meet OCWD's annual Basin Production Percentage, and projected variances in groundwater versus import water demand in FY21-22 caused by delayed utilization of the water treatment plant. Staff provided an overview of projected variable costs for FY21-22 as compared to the draft budget for FY22-23, highlighted the change between Minutes of the YLWD Board of Directors special Meeting Held March 22,2022 at 5:30 p.m. 3 2022-039 the amount of import versus groundwater purchases, and noted projected increased power costs. Staff then reviewed more detailed historic and projected variable costs as compared to rate study assumptions, including rate increases from OCWD, MWDOC, MET, and SCE, and responded to associated questions from the Board. Staff also reviewed projected revenues as compared to rate study assumptions, including retail water consumption, and noted that the projections did not include any revenue from potential pass-through charges. Staff noted that should the state declare a mandatory reduction in water consumption once again, the Board may need to consider implementing water drought rates. Staff then reviewed a more detailed analysis of historic, projected, and budgeted revenues, including assumptions in the rate study, and responded to questions from the Board regarding the District's line of credit. Staff provided an overview of the proposed FY22-23 budget for the 5-year Capital Improvement Plan (CIP), cost estimates for and status of the listed projects, and the planned update of the District's Water Master Plan. Discussion followed regarding the schedule for and cost of implementing advanced metering infrastructure, the statewide indoor water use standard of 55 gallons per person per day through January 2025 (aggregated across the population in a service area), and capital outlay for redesigning the District's computer network and replacing vehicles and large equipment. Staff explained that the draft FY22-23 water enterprise budget was contingent on the successful issuance of$35M in bond debt. Director Hawkins stated that he would be participating in the May 24, 2022 Board meeting remotely during which the final FY22-23 budget was scheduled to be considered. Assistant General Manager Davert commended staff for their efforts in developing the draft FY22-23 budget and outlined topics to be covered during the next budget workshop meeting. President Miller commended staff and the District's legislative consultants for their part in successfully obtaining $500K as part of the federal appropriations package to construct an additional heli-hydrant. 9. ADJOURNMENT 9.1. Director Hawkins made a motion, seconded by Director Lindsey, to adjourn the meeting at 8:17 p.m. Motion carried 5-0-0-0 on a roll call vote. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Special Meeting Held March 22,2022 at 5:30 p.m. 4