HomeMy WebLinkAbout2011-02-17 - Board of Directors Meeting Minutes
2011-027
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS WORKSHOP MEETING
February 17, 2011
1. CALL TO ORDER
The February 17, 2011 workshop meeting of the Yorba Linda Water District
Board of Directors was called to order by President Beverage at 8:00 a.m. The
meeting was held at the District's Administrative Office at 1717 E Miraloma Ave,
Placentia CA 92870.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Michael J. Beverage, President Ken Vecchiarelli, General Manager
Phil Hawkins, Vice President Steve Conklin, Engineering Manager
Robert R. Kiley Lee Cory, Operations Manager
Gary T. Melton Gina Knight, Human Resources Mgr
' Stephen Parker, Finance Director
Dave Barmer, Sr Maint Dist Operator
Nicole Dalton, Meter Reader II
Harold Hulbert, Operations Assistant
Delia Lugo, Senior Accountant
Damon Micalizzi, Public Info Officer
Annie Alexander, Executive Secretary
DIRECTORS ABSENT
Ric Collett
OTHER VISITORS
Sanjay Gaur, Principal Consultant, Red Oak Consulting
Tom Ash, Director of Conservation, HydroPoint Data Systems
4. PUBLIC COMMENTS
None.
Mr. Vecchiarelli welcomed everyone in attendance. Each individual then provided a
brief introduction of themselves. Mr. Vecchiarelli explained that the purpose of the
meeting was to discuss the District's water rates and alternative rate structures.
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5. DISCUSSION ITEMS '
5.1. Financial Plan Study and Water Rate Alternatives
Mr. Gaur provided the Board with a PowerPoint presentation regarding
two financial plans, one which incorporated the OCWD annexation and
another that did not. This included a review of the District's pass through
costs and the affects of annexation on the cost of the District's overall
water supply. The Board and staff discussed the probability and timing of
the OCWD annexation. Mr. Gaur then reviewed two different fixed rate
options. The first was a uniform rate option where the rate would be the
same for all meter sizes. The second was based on the meter size, the
larger the size the higher the rate. This option could also be gradually
adjusted to AWWA capacity ratios over a period of five years.
Mr. Gaur then provided a second PowerPoint presentation regarding the
water rate alternatives including rate structures that promote water use
efficiency and enhance revenue stability. The discussion included an
overview of the challenges facing the District, water rate evolution and
options for conservation rate structures. The Board and staff discussed
the number of similar agencies who are currently using a budget based
rate structure as well as the goal of implementing such a structure.
Director Beverage commented that the last time the Board met to discuss '
rate structures staff had been instructed to bring back a modified "postage
stamp" rate for consideration. Following additional discussion, Mr.
Vecchiarelli reported that the rate structure study included the preparation
of a flexible model that could show various rate structures side by side
including a flat rate, single or multiple tiered water rate and other
combinations, simply by varying the input for number of tiers, width of
tiers, etc. The model could also show the affects of migrating to a different
fixed rate structure based on meter size which could gradually adjust to
AWWA standards over 5 years. Another workshop to review these
various options and their affects on typical bills, seasonal water bills and
the average customer will be scheduled in May or June.
5.2. FY 2010/11 Budget
Mr. Vecchiarelli asked for feedback from the Board regarding their desire
to have staff prepare a 1 year or a 2 year budget. The Board and staff
then discussed the pros and cons of preparing each type of budget.
Director Hawkins suggested that staff prepare a 1 year budget along with
a 3-5 year financial plan. The Board agreed to this approach.
5.3. Future Agenda Items and Staff Tasks
President Beverage asked if any of the Board members planned to attend
the City of Yorba Linda Main Street Archway Celebration on February 22, '
2011. Directors Melton and Kiley will attend.
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' 6. ADJOURNMENT
6.1. The meeting was adjourned at 10:37 a.m. The next regular meeting of the
Board of Directors will be held February 24, 2011 at 8:30 a.m.
en Vecchiarelli
Board Secretary
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