HomeMy WebLinkAbout1995-10-24 - Board of Directors Meeting MinutesPage.9l
October 24, 1995
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
October 24, 1995
The October 24, 1995, Regular Meeting of the Yorba Linda Water District Board of Directors was
called to order by President Arthur C. Korn at 7:00 p.m. The meeting was held at the Yorba Linda
Public Library Community Room, 18181 Imperial Highway, Yorba Linda.
Directors present at Roll Call:
President Arthur C. Korn
Vice President Michael J. Beverage
Paul R. Armstrong
Sterling L. Fox
Carl T. Scanlin
Directors absent at roll call
none
Visitors
Sheri Johnson, Laer Pearce & Associates
Staff present:
William J. Robertson, Secretary/General Manager
Raquel Lazo, Secretary to the General Manager
Roger Lubin, Exec. Asst. to the General Manager
Beverly Meza, Business Manager
Michael Payne, Assistant General Manager
Michael Robinson, Assistant Administrator
PUBLIC HEARING CALENDAR
Item 1. Consideration of resolutions adopting water rates for for Fiscal Year 1995-96 and
1996-97. President Arthur C. Korn opened the public hearing at 7:02 p.m. There were 16
members of the public in attendance.
Secretary William J. Robertson provided proof of public hearing notice. Testimony began with a
report by General Manager William J. Robertson, who provided historical information about the
District's water rates, and discussed the sensitivity of the District's rates to those imposed by water
and power suppliers. Since the last rate increase in 1993, the District's costs have risen
dramatically, primarily as a result of rising costs for imported water supplied by MWD, increases
in the OCWD Replenishment Assessment, and related fixed operating costs.
Mr. Robertson presented an overview of the District's financing and described the Water and Sewer
Funds, and Improvement Districts 1 and 2. He noted that the District began 1995-96 with a $1
million balance, but will end 1996-97 with a $1.3 million deficit - a reduction in the District's
financial position of $2.3 million. Mr. Robertson noted that this forecast is based on supplier cost
increases, which are outside the District's control.
He also indicated that the District has responded to these supplier cost increases by planning a
variety of capital improvement projects. When completed, these projects will allow the District to
pump additional groundwater. While these projects will reduce the impact of Met's charges on the
District's rates and will pay for themselves within 7 to 10 years, a rate increase will be required in
the near future to pay the debt service on these capital improvements. The District's goal is to
create sufficient capacity to meet 70% of its demand with locally produced, less expensive
groundwater.
Page .a) `4 ~-4 `6` 00 October 24, 1995
Mr. Robertson also explained the relationship between MWD, MWDOC, and OCWD. Charts
were used to depict the close historical relationship between MWD's rates and those of the District,
and to point out that 56% of the District's budget is for water and energy costs - factors beyond
the District's control.
He also pointed out that the District has tried to operate efficiently wherever possible, and currently
maintains the second lowest ratio in the county of employees to service connections.
Various members of the public testified about the impact of water rates.
President Korn closed the public hearing at 8:15 p.m. On a motion by Vice President Beverage,
seconded by Director Fox, the Board of Directors voted 5-0 on a roll call to accept the Water Rate
Report for fiscal year 1995-96 and 1996-97, and adopt Resolution 95-19 which sets water rates for
1995-96 and 1996-97, and rescinds Resolution 93-11, with the proviso that the Board be advised
in one year if there are significant changes in the assumptions underlying the rate
recommendations.
ADJOURNMENT
Following a period of public comment, on a motion by Director Armstrong, seconded by Director
Vice President Beverage, the Board of Directors voted 5-0 at 8:40 p.m. to adjourn to Thursday,
October 26/1995 at 8;~0 a.m., at the District headquarters on Plumosa Drive.
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Secretary/General Manager