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HomeMy WebLinkAbout2015-07-09 - Board of Directors Meeting Minutes 2015-112 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, July 9, 2015, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The July 9, 2015 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Collett at 8:30 a.m. The meeting was held in the Board Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. PLEDGE OF ALLEGIANCE President Collett led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Ric Collett, President Marc Marcantonio, General Manager Michael J. Beverage, Vice President Anthony Manzano, Senior Project Manager Robert R. Kiley John DeCriscio, Operations Manager Phil Hawkins Gina Knight, Human Resources / Risk Manager Gary T. Melton Delia Lugo, Finance Manager Art Vega, Information Technology Manager Damon Micalizzi, Public Information Manager Annie Alexander, Executive Secretary Malissa Tern, Public Affairs Specialist ALSO PRESENT Art Kidman, Partner, Kidman Law LLP Daniel Mole, Chair, YLWD Citizens Advisory Committee Sanjay Gaur, Vice President, Raftelis Financial Consultants Khanh Phan, Senior Consultant, Raftelis Financial Consultants Minutes of the YLWD Board of Directors Regular Meeting Held July 9, 2015 at 8:30 a.m. 1 2015-113 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Marcantonio requested to add the following item to the agenda as there was a need to take immediate action and the need for action came to staff's attention subsequent to the agenda being posted. 8.6. H.R. 2892 (Valadao, R-CA) The Western Water & American Food Security Act of 2015 Recommendation: That the Board of Directors support H.R. 2892 (Valadao, R-CA) and send a letter to the Orange County Congressional Delegation indicating the District's position. In addition, to sign the letters of support from the Municipal Water District of Orange County and the Orange County Water District. An agenda report related to this item was previously distributed to the Board and made available to the public. President Collett also requested that the Board take Item No. 9.1. immediately following consideration of the Consent Calendar. Director Hawkins made a motion, seconded by Director Collett to add Item No. 8.6. to the agenda. Motion passed 5-0. 5. PUBLIC COMMENTS None. 6. COMMITTEE REPORTS 6.1. Citizens Advisory Committee (Collett) • Minutes of the meeting held June 22, 2015 at 8:30 a.m. were provided in the agenda packet. Mr. Daniel Mole addressed the Board and provided a report regarding matters discussed during the meeting including the drought penalty ordinance, the current water supply situation, and the draft operating budget for the next fiscal year. He also briefly commented on the water conservation ordinance. • Next meeting will be held July 27, 2015 at 8:30 a.m. Minutes of the YLWD Board of Directors Regular Meeting Held July 9, 2015 at 8:30 a.m. 2 2015-114 7. CONSENT CALENDAR Director Beverage made a motion, seconded by Director Melton, to approve the Consent Calendar. Motion carried 5-0. 7.1. Minutes of the Board of Directors Regular Meeting held June 11, 2015 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Workshop Meeting held June 18, 2015 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Minutes of the Board of Directors Special Meeting held June 18, 2015 Recommendation: That the Board of Directors approve the minutes as presented. 7.4. Minutes of the Board of Directors Regular Meeting held June 25, 2015 Recommendation: That the Board of Directors approve the minutes as presented. 7.5. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$476,386.82. The following item was taken out of order. 9. DISCUSSION ITEMS 9.1. Water and Wastewater Rate Study Review Mrs. Lugo introduced Mr. Sanjay Gaur and Ms. Khanh Phan from Raftelis Financial Consultants. Mr. Gaur then provided a PowerPoint presentation to the Board regarding the water and wastewater rate study. He explained that the objectives of the study were to: (1) develop a 5-year financial plan for the District's water and sewer enterprises; (2) calculate the water and sewer rates; and (3) develop an administrative record that would demonstrate the relationship between the District's costs to provide service and its water and sewer rates. Mr. Gaur then reviewed the importance of financial policies, the need for reserves, and meeting debt service requirements. He also reviewed the District's current water and sewer financial policies and plans and Raftelis' proposed financial policies and plans. Mr. Gaur then provided an overview of Rafetlis' analysis of the District's cost of service and the resulting proposed water and sewer rate Minutes of the YLWD Board of Directors Regular Meeting Held July 9,2015 at 8:30 a.m. 3 2015-115 increases. This included a review of potential impacts on a sample single family residence with different usage level scenarios. Mr. Gaur then responded to questions from the Board regarding recommended debt coverage ratios and the District's bond ratings. Staff also responded to questions from the Board regarding projected costs for sewer maintenance. Mrs. Lugo indicated that staff would be asking the Board to consider receiving and filing the water and wastewater rate study analysis and moving forward with the Proposition 218 process at the special meeting scheduled the following week. A brief recess was declared at 9:36 a.m. Mr. Gaur and Ms. Phan left the meeting at this time. The meeting was reconvened at 9:43 a.m. 8. ACTION CALENDAR 8.1. Proposed Budget for FY 2015/16 A revised copy of the budget was distributed to the Board and made available to the public which incorporated revisions as requested by the Board at the workshop meeting held the day prior. Mr. Marcantonio provided an overview of the purpose of the budget. He and Mrs. Lugo then responded to questions from the Board regarding potential revisions to the budget based on results from the water and wastewater rate study and the pending Proposition 218 hearing. Director Beverage requested that any future revisions to the budget describe the "number of customers" as the "number of meter connections". Director Beverage made a motion, seconded by Director Melton, to approve Resolution No. 15-16 Adopting the Budget (as amended and provided at the Board meeting) for Fiscal Year 2015/16 and Rescinding Resolution No. 14-08. Motion carried 5-0 on a Roll Call vote. The Board commended staff for their work on the budget. 8.2. Water Conservation Participation Agreement with Municipal Water District of Orange County (MWDOC) Mr. Marcantonio explained that MWDOC administers multiple water conservation rebate programs that the District has participated in since 2004. Traditionally, each rebate program has been approved separately through individual agreements. This year, MWDOC has created an "umbrella" agreement which will allow agencies to more easily adjust their funding amounts. The District's FY 2015/16 budget reflects a total of $5,000 for various rebate programs through MWDOC. Under the new "umbrella" agreement, YLWD can choose which programs it wishes to participate in and approve addendums as necessary. Minutes of the YLWD Board of Directors Regular Meeting Held July 9,2015 at 8:30 a.m. 4 2015-116 Director Beverage made a motion, seconded by Director Hawkins, to authorize the General Manager to execute MWDOC's Water Conservation Participation Agreement. Motion carried 5-0. 8.3. Nominations for Association of California Water Agencies (ACWA) President and Vice President Mr. Marcantonio explained that ACWA's Nominating Committee is responsible for submitting a slate of candidates for President and Vice President to the general membership at the fall conference. The District's Board has the option of nominating one of its own Directors for these slates by resolution. None of the Directors expressed an interest in nominating a Director for one of these positions at this time. No action was taken on this item. 8.4. California Special Districts Association (CSDA) 2015 Board Elections Mr. Marcantonio explained that the Board had been presented with the opportunity to vote for one of the nominated candidates in the CSDA 2015 Board Election. The current incumbent in the expiring seat for the Southern Network is Jo MacKenzie from the Vista Irrigation District. YLWD's Board also recently adopted a resolution concurring in Ms. MacKenzie's nomination to the CSDA Board of Directors. Director Beverage made a motion, seconded by Director Kiley, to vote for Ms. Jo MacKenzie from the Vista Irrigation District to serve as a representative to the CSDA Board of Directors in Seat A for the Southern Network. Motion carried 5-0. 8.5. Proposed Amended and Restated Independent Special Districts of Orange County (ISDOC) Bylaws Mr. Marcantonio explained that ISDOC had formed an ad hoc committee to review the organizations bylaws and provide suggested revisions. As such, the amended bylaws are now being presented to YLWD's Board for consideration. With the exception of four substantial changes, a majority of the modifications are simply cleanup or consolidation of language. Director Hawkins made a motion, seconded by Director Melton, to approve the amended and restated ISDOC bylaws. Motion carried 5-0. Minutes of the YLWD Board of Directors Regular Meeting Held July 9, 2015 at 8:30 a.m. 5 2015-117 8.6. H.R. 2892 (Valadao, R-CA) The Western Water & American Food Security Act of 2015 Mr. Marcantonio explained that H.R. 2892, The Western Water & American Food Security Act of 2015, is seeking to rebalance water policies in California and the West. It includes provisions designed to increase water deliveries to San Joaquin Valley agriculture at the expense of flows now dedicated to protecting fisheries, including endangered salmon and Delta smelt. The Board has received a request to consider supporting this legislation and to send and endorse letters to that effect. Director Hawkins made a motion, seconded by Director Melton, to support H.R. 2892 (Valadao, R-CA) and send a letter to the Orange County Congressional Delegation indicating the District's position. In addition, to sign the letters of support from the Municipal Water District of Orange County and the Orange County Water District. Motion carried 5-0. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report None. 10.2. Directors' Reports Each of the attending Directors reported on their participation in the following event. Groundwater Replenishment System Initial Expansion — June 26, 2015 10.3. General Manager's Report Mr. Marcantonio asked each manager (or their designee) in attendance to provide a report regarding activities within their respective departments. He then provided the Board with an overview of his activities and meeting attendance. 10.4. General Counsel's Report Mr. Kidman briefly commented on the District's water conservation and drought penalty ordinances and the heightened fire danger throughout the state. 10.5. Future Agenda Items and Staff Tasks Director Melton suggested that the Board consider scheduling a workshop meeting to review and discuss the District's water conservation and drought penalty ordinances. The Board agreed. Minutes of the YLWD Board of Directors Regular Meeting Held July 9,2015 at 8:30 a.m. 6 2015-118 11. COMMITTEE REPORTS CONTINUED 11.1. Interagency Committee with MWDOC and OCWD (Collett / Melton) • Next meeting will be held July 28, 2015 at 4:00 p.m. 11.2. Joint Agency Committee with City of Placentia (Melton / Kiley) • Minutes of the meeting held June 22, 2015 at 2:00 p.m. will be provided at the next regular Board meeting. • Next meeting will be held July 27, 2015 at 2:00 p.m. at Golden State Water Company's office in Placentia. 11.3. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) • Minutes of the meeting held June 23, 2015 at 10:00 a.m. will be provided at the next regular Board meeting. • Next meeting will be held July 22, 2015 at 10:00 a.m. at YL City Hall. 12. INTERGOVERNMENTAL MEETINGS Each of the Directors reported on their attendance at the following meetings. 12.1. MWDOC Board - July 1, 2015 (Melton) 12.2. OCSD Operations Committee - July 1, 2015 (Kiley/Beverage) 12.3. OCWD Board - July 1, 2015 (Collett) 12.4. Placentia City Council - July 7, 2015 (Melton) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from July 10, 2015 —August 31, 2015 The Board reviewed the activity calendar and made no changes. Minutes of the YLWD Board of Directors Regular Meeting Held July 9,2015 at 8:30 a.m. 7 2015-119 14. ADJOURNMENT 14.1. The meeting was adjourned at 11 :13 a.m. A Board of Directors Special Meeting has been scheduled for Thursday, July 16, 2015 at 8:30 a.m. The next Regular Board of Directors Meeting will be held Thursday, July 23, 2015 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held July 9, 2015 at 8:30 a.m. 8