HomeMy WebLinkAbout2022-05-12 - Board of Directors Meeting Minutes 2022-065
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
Thursday, May 12, 2022, 3:00 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 3:00 p.m.
3. PLEDGE OF ALLEGIANCE
President Miller led the pledge.
4. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
J. Wayne Miller, PhD, President Doug Davert, Asst General Mgr/ Interim General Mgr
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
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
5. PUBLIC COMMENTS
None.
6. DISCUSSION ITEMS
6.1. Presentation from Municipal Advisors on Potential Debt Financing
Staff noted that a handout listing the District's current debt obligations had
been distributed to the Board at the beginning of the meeting.
Minutes of the YLWD Board of Directors Special Meeting Held May 12,2022 at 3:00 p.m. 1
2022-066
Staff introduced representatives from Fieldman Rolapp & Associates, Inc.
who will be assisting the District with the proposed bond debt issuance.
Lora Carpenter, Vice President of Fieldman Rolapp, reviewed the proposed
debt financing strategy to fund the District's 5-Year Capital Improvement
Plan (CIP), retire the line of credit, and potentially refund the 2012 bonds.
She also explained the purpose of financing CIP projects utilizing long-term
debt and provided an overview of municipal bond market conditions from
January 2022 to current. Ms. Carpenter then reviewed the District's
estimated debt service profile based on $35M and the accelerated schedule
for the proposed bond debt issuance. Discussion followed regarding
potentially refunding the 2012 bonds and next steps.
6.2. Summary of Draft Budget for Fiscal Year 2022-23, Analysis of Supplies and
Services, Analysis of Salaries and Related Expenses, Review of Financial
Scenarios and Customer Impact
Staff reviewed information gathered as requested by the Board during the
previous budget workshop beginning with the proposed budget for supplies
and services and associated off-trend expenses.
Al Nederhood, resident, suggested the Board consider splitting the cost for
updating the Water Master Plan (WMP) between two fiscal years instead of
one and accruing OCWD's partial reimbursement of operation and
maintenance expenses for the PFAS Water Treatment Plant in the FY22-
23 budget.
Discussion followed regarding transitioning the District's financial
accounting to an accrual basis and how it would impact the current budget
process, the purpose for updating the WMP in the near future rather than
deferring it and associated invoicing, and the benefit of analyzing the
financial impact of OCWD's partial reimbursement for maintaining and
operating the treatment plant following one year of operation.
Staff then reviewed various off-trend expenses in the proposed budget for
supplies and services, the proposed budget for travel and conferences, the
financial impact of a 10% reduction in water revenue, the financial analysis
of adjusting the sewer rates by 9% instead of 15%, and other rate
adjustment scenarios along with the projected impact on customers with
various levels of water consumption. Staff recommended the Board
consider adjusting both the water and sewer rates by 9% and to include the
$0.02 pass-through adjustment. It was the consensus of the Board for staff
to prepare the final draft of the proposed budget accordingly. The Board
also discussed the overall budget process and commended staff for their
efforts.
Minutes of the YLWD Board of Directors Special Meeting Held May 12,2022 at 3:00 p.m. 2
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Director Hawkins left the meeting at 4:46 p.m.
Discussion continued regarding strategies and mechanisms for funding the
District's 5-Year CIP and managing reserves.
7. ADJOURNMENT
7.1. Director Jones made a motion, seconded by Director DesRoches, to
adjourn the meeting at 4:58 p.m. Motion carried 4-0-0-1 on a roll call vote
with Director Hawkins absent.
Annie Alexander
Board Secretary
Minutes of the YLWD Board of Directors Special Meeting Held May 12,2022 at 3:00 p.m. 3