HomeMy WebLinkAbout2012-04-23 - Citizens Advisory Committee Meeting Minutes MINUTES OF THE
YORBA LINDA WATER DISTRICT
CITIZENS ADVISORY COMMITTEE MEETING
April 23, 2012
CALL TO ORDER
A meeting of the Citizens Advisory Committee was called to order at 8:30
a.m. by Chair Daniel Mole. The meeting was held at the District's
Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870.
COMMITTEE MEMBERS PRESENT
Daniel Mole Joe Holdren
Fred Hebein Lindon Baker
Greg Meyers Modesto Llanos
Gus Bruner Rick Buck
YLWD DIRECTORS PRESENT YLWD STAFF PRESENT
Michael J. Beverage, Director Ken Vecchiarelli, General Manager
Steve Conklin, Engineering Manager
Stephen Parker, Finance Manager
Cindy Botts, Management Analyst
Cody Peterson, Public Affairs Intern
OTHER VISITORS
Mark Schock
1. PUBLIC COMMENTS
Committee members brought up the fact that the "Penny Signs" are continuing to
be misunderstood by members of the community. A Committee member also
questioned if the Edison explosion affected the Water District. Mr. Vecchiarelli
explained that with the exception of 3 pumps whose gasoline backup generators
took over upon loss of power, the District was not affected. A data sheet was also
presented to the Committee by Mr. Shock which detailed District reservoir water
levels during Red Flag Warning Periods. Director Beverage informed the
Committee that the issue had been presented before the Board and it has been
moved to the PEO Committee for review in the coming months. The Committee
also discussed clarifying the difference between Water and Sewer services
provided by the District.
2. DISCUSSION ITEMS
2.1. Capital Improvement Program for FYs 2012/13 thru 2016/17
Mr. Conklin presented the proposed Capital Improvement Plan (CIP) to
the Committee highlighting a project priority system for current and future
projects. Updates were provided at Committee request on the status of
said projects. Two upcoming projects are designed to further utilize
Orange County Water District (OCWD) groundwater over MWD import
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water in the event of annexation, during MWD shutdowns, interruptions in
MWD service and to allow more operational flexibility. An image of the
tentative location of Well 21 was shown to the Committee as part of the
explanation of the District wide Groundwater Delivery Project. The project
allows for pumping of groundwater to the higher zones and will save the
district approximately $1 million per year if YLWD is able to have its entire
service area annexed to OCWD. There will also be new improvements at
the Fairmont Reservoir to include: replacement of 2 old pumps with 6 new
ones, replacement of valves in the reservoir, pipeline improvements, and a
new, larger pump building. This project, along with many other facets of
the Capital Improvement Plan, accounts for future housing developments.
Total cost for the project's various components is approximately $8.3
million over 3 years. Committee members were informed that the Board
had decided to go with staff recommendation to postpone those projects
perceived not to be immediately necessary. Mr. Vecchiarelli clarified they
represent repair and replacement of portions of the system that are being
regularly maintained, but are older and are working on borrowed time.
2.2. Draft Budget for FY 2012/13
Mr. Parker explained the Budget's assumptions to the Committee which
included the increased percentage of OCWD groundwater allowance and
the MWD rate increases for the next three fiscal years. Budget expenses
were laid out before the Committee. These expenses detailed those
services considered to be (1) Required for Operational Service, (2)
Necessary for Adherence to the District's Strategic Plan, and (3) Falling
into Neither of the Other Categories. The presentation also covered: new
budget revenue allotments, variable water cost comparison in rates
between MWD and OCWD, and Vehicle Equipment and Capital Outlay.
The District's Fitch AA+ rating was explained to the Committee. Reserve
Policy changes were reviewed and included changes in Operating
Reserves and Maintenance Reserves. Director Beverage fielded
questions over why MWD rates have skyrocketed over the last 4 years
and Committee members expressed concerns about those increased
rates now and into the future. Various graphs detailing the outcome of
District rate increases were presented and illustrated the Board's decision
for a 1.5%, 2.5%, and 2.5% rate increase over the next 3 years. It was
further explained that the Board was not mandated to enact the increases
but would have the option available to them. The benefits of using a line of
credit to even out the effects of the rate increases was detailed along with
the recommendation to change from a fixed rate to a volumetric rate and
its pros and cons. A comparative rate chart between other water districts
was presented to show the efficiency of the District. The Committee asked
several questions related to the District's justification for the rate increase.
2.3. OC Water Summit Attendance
Committee members were informed that seats were available for those
who wished to attend. The Summit is Friday, May 18, 2012 at the Grand
California Hotel in Anaheim.
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2.4. Rescheduling May 2012 Meeting Date
The Committee decided to move the May meeting to Tuesday, May 29,
2012.
2.5. District Facilities Tour
The Committee members were informed that the Board would be hosting
a tour of District facilities on Thursday, May 31St, which will be open to
those CAC members who wish to attend.
2.6. Future Agenda Items
■ District Public Affairs Efforts
3. ADJOURNMENT
3.1. The Committee adjourned at 10:30 a.m. The next regular meeting of
the Citizens Advisory Committee will be held May 29, 2012 at 8:30
a.m.
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