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HomeMy WebLinkAbout2016-07-14 - Board of Directors Meeting Minutes 2016-122 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, July 14, 2016, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The July 14, 2016 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 Mr. Conklin led the pledge. , 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Ric Collett, President Marc Marcantonio, General Manager Mike Beverage, Vice President Steve Conklin, Engineering Manager Bob Kiley John DeCriscio, Operations Manager Phil Hawkins Gina Knight, Human Resources/Risk Manager Gary Melton Delia Lugo, Finance Manager Damon Micalizzi, Public Information Manager Art Vega, Information Technology Manager Annie Alexander, Executive Secretary Cindy Botts, Water Cons Supv/Mgmt Analyst Laurie McAllaster, Records Mgmt Administrator Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Bill Guse, Member, YLWD Citizens Advisory Committee Ben Parker, Resident President Collett explained that Vice President Beverage was present and that he'd join the meeting as soon as he could. 4. ADDITIONS/DELETIONS TO THE AGENDA President Collett invited Mr. Bill Guse to provide a report on matters discussed during the most recent Citizens Advisory Committee. This report will be added to the agenda as Item No. 5.3. • Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 1 2016-123 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Recognize Laurie McAllaster,. Records Management Administrator, for Receiving Chapter Leader of the Year Award from Southern California Inland Empire Chapter of ARMA International Mrs. Gina Knight introduced Mrs. McAllaster and commended her on her achievement. 5.2. MWDSC/MWDOC Director's Report . None. 5.3. Citizens Advisory Committee Meeting Report Mr. Bill Guse reported on matters discussed during the meeting held June 27, 2016 including a presentation by Mr. Ben Parker comparing the rates of a few local water providers. The Committee also discussed the complexities involved with providing water service and the different issues facing each agency. Mr. Ben Parker, resident, commented on his presentation and the difficulty in making comparisons between water agencies. He also commented on the benefits of performing comparative assessments in relation to -efficiency. President Collett commented on rate differences between neighboring cities for waste management services due to multiple factors including the amount and type of waste being disposed. 6.' PUBLIC COMMENTS None. 7. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Kiley, to approve the Consent Calendar. Motion carried 4-0-0-1 with Director Beverage being absent. 7.1. Minutes of the Board of Directors Special Meeting held June 6, 2016 Recommendation: That the Board of Directors approve the minutes as presented. Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 2 2016-124 7.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$1,169,708.08. 7.3. Quitclaim Easement Deed to Seazona Properties, LTD and MNG-FWE, LP Recommendation: That the Board of Directors authorize the General Manager to execute the Quitclaim Easement Deed to Seazona Properties, LTD and MNG-FWE, LP, abandoning portions of the recorded easement of the Official Records of Orange County, California. 7.4. Claim for Damages Filed by Theresa Tallon Recommendation: That the Board of Directors reject the claim submitted by Theresa Tallon and refer it to ACWA/JPIA. 7.5. Claim for Damages Filed by Ramiro Gonzalez Recommendation: That the Board of Directors reject the claim submitted by Ramiro Gonzalez and refer it to ACWA/JPIA. 8: ACTION CALENDAR 8.1. Time Extension for Completion of Compliance with Habitat Mitigation and Monitoring Plan for Hidden Hills Reservoir Project Mr. Conklin,explained that Chambers Group had assisted the District with preparation of a project-specific Habitat Mitigation & Monitoring Plan (HMMP) for the Hidden Hills Reservoir Project. Compliance with the HMMP required restoring and maintaining habitat in the project area for five years through June 30, 2016. Now that 'the program period has ended, Chambers has been working on completion of site work and preparation of the final annual report. This report will be submitted to state and federal regulatory agencies for review. Should there be any comments, Chambers will revise the report and schedule a site visit and sign-off by regulatory agencies. Depending on availability of regulatory staff, the site visit may not be scheduled until late summer or early fall. As such, a no cost 6-month time extension of the original agreement with Chambers has been requested. Mr. Conklin then began to provide an overview of information contained in the annual report. Due to technical difficulties, there was a short break. Mr. Conklin continued with his report and responded to questions from the Board. Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 3 2016-125 Director Kiley made a motion, seconded by Director Hawkins, to approve a no-cost, six-month time extension change order (to December 31, 2016) to the Professional Services Agreement (PSA) with Chambers Group,. Inc. for Hydro-seeding, Site Maintenance, Biological Monitoring and Report Preparation for the Hidden Hills Reservoir Project. Motion carried 4-0-0-1 with Director Beverage being absent. 9. DISCUSSION ITEMS 9.1. FY 2016/17 Operating Budget Recommendation Mrs. Lugo explained that at the last meeting, staff had been directed to bring back the financial portion of the draft budget beginning with a 12% bounce back (or incremental increase) in water demand. She then provided an overview of the revenue section of the water enterprise statement. She noted that analysis of the budgeted service charges had been performed in house and will be reviewed by the District's financial consultants (Raftelis). Raftelis will provide a report to the Board which may include recommended adjustments due to recent changes in the State Water Resource Control Board's (SWRCB) emergency conservation regulations and their impact on the District. Mrs. Botts explained that staff had submitted all required paperwork to SWRCB in relation to self- certifying the District's revised conservation percentage. Mr. Marcantonio responded to questions regarding the self-certification process and requirements. Mrs. Lugo noted that staff did not expect to receive any revenue from administrative penalties during the next fiscal year. She then reviewed the expenses section of the water enterprise statement and clarified that salary related expenses for staff performing conservation and leak detection related duties would be funded using administrative penalty revenue received the previous fiscal year. Mrs. Knight responded to questions regarding the cost of medical insurance. ' Mrs. Lugo reviewed the supplies and services section of the water enterprise statement including changes from the previous budget in communications and data processing. Staff also responded to questions regarding the costs associated with the election, Director and employee training/certification, utilities, and contractual services. Mrs. Botts provided the Board with the 3/4" and 1" meter charges used in staff's calculation of the budgeted service charges. Mrs. Lugo clarified that the total amount included estimated growth. The Board and staff then discussed required testing for backflow devices. Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 4 2016-126 Mrs. Lugo reviewed the non-operating expenses and net income sections of the water enterprise statement following which she began reviewing the sewer enterprise statement. She explained that the budgeted sewer charge revenue included the rate increase identified in the water/sewer rate study. Mr. DeCriscio responded to questions regarding the potential impact of conservation on the sewer system. Mrs. Lugo continued her review of the revenue and expense sections of the sewer enterprise statement. Mr. DeCriscio responded to questions regarding the increase in materials and maintenance and explained that the Sewer Collection Division was performing an increased number of repairs. He also reported on recent repairs performed for the sewer lift station in Hidden Hills. Mrs. Lugo reviewed the net income before capital contributions. Mrs. Lugo then provided an overview of the five year projections for both the water and sewer enterprises and responded to questions regarding the methods used and the projected debt service coverage ratios. She then requested direction from the Board regarding preparation of the final draft budget and responded to questions regarding the timeline for completion of Raftelis' analysis. She also clarified that it was possible that Raftelis may recommend an adjustment to the service charges following examination of staff's work. Mr. DeCriscio responded to questions regarding consumption trends before and during the drought. Following brief discussion, it was the consensus of the Board that staff proceed with finalizing the draft budget. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report None. 10.2. Directors' Reports Director Kiley commented on the mulch being applied in various locations throughout the community. 10.3. General Manager's Report Mr. Marcantonio asked each of the managers to provide a report regarding activities within their respective departments. Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 5 2016-127 Mr. Conklin reported on the status of various construction projects including the Waterline Replacement Project, Well 21 Project, Richfield Road Water Main Project, Sewer Main Rehabilitation Project, and the Fairmount Booster Pump Station Upgrade Project. He also commented on litigation between IRWD and OCWD and OCWD's forecasted rate increases which were discussed during the most recent OCWD Water Issues Committee and Groundwater Producers meetings. Mr. DeCriscio reported on the Operations Department accomplishments during the previous fiscal year and responded to related questions from the Board. - Mrs. Lugo reported that staff would be compiling the fully illustrated final draft of the budget and gearing up for the year-end audit which is scheduled to take place the week of August 22, 2016. She also reported that Fitch Ratings had contacted her to schedule a review of the District's bond rating in late July. With the help of Mr. Robert Porr from Fieldman Rolapp, this has been postponed until a more opportune time. Mr. Vega reported on the status of the Laserfiche upgrade and the number of blocked threats to the District's computer network over the past two months. Mr. Micalizzi reported that there was heightened interest from the media regarding the status of current litigation and that the latest edition of the newsletter had been well received by District customers. He also commented on feedback he'd received regarding the relaxation of conservation percentages and the District's conservation percentage achieved during the month of June. Mr. Micalizzi then reported on the status of legislative activities including SWRCB's formation of a stakeholder workgroup which will focus on developing permanent conservation regulations. Mrs. Knight reported that staff had been working on the Laserfiche upgrade, conducting first aid/CPR training, and the development of four new policies. Mr. Marcantonio then provided the Board with an overview of existing litigation between IRWD and OCWD and potential impacts on YLWD and other local water agencies. Vice President Beverage joined the meeting at 10:11 a.m. The Board and staff briefly discussed the litigation between IRWD and OCWD. Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 6 2016-128 Vice President Beverage left the meeting at 10:14 a.m. 10.4. General Counsel's Report None. 10.5. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Collett / Melton) • Next meeting is scheduled July 26, 2016 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) • Minutes of the meeting held June 28, 2016 at 9:00 a.m. were provided in the agenda packet. • Next meeting is scheduled July 27, 2016 at 9:00 a.m. at YL City Hall. 11.3. Interagency Committee with City of Placentia and Golden State Water Co. (Collett/ Kiley) • Next meeting is yet to be scheduled. 11.4. Citizens Advisory Committee (Melton) • Minutes of the meeting held June 27, 2016 at 8:30 a.m. will be provided when available. • Next meeting is scheduled July 25, 2016 at 8:30 a.m. 12. INTERGOVERNMENTAL MEETINGS The Directors and staff reported on their attendance at the following meetings. 12.1. YL Planning Commission —June 29, 2016 (Melton) Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 7 2016-129 12.2. ISDOC - June 30, 2016 (Kiley) 12.3. YL City Council — July 5, 2016 (Collett) 12.4. MWDOC Board — July 6, 2016 (Melton) 12.5. OCSD Operations Committee — July 6, 2016 (Kiley/Beverage) 12.6. OCWD Board —July 6, (Kiley) 12.7. WACO — July 8, 2016 (Hawkins/Kiley) 12.8. LAFCO — July 13, 2016 (Beverage —As Needed) 12.9. YL Planning Commission — July 13, 2016 (Melton) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from July 15, 2016 —August 31, 2016 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. UWI Conference —August 24-26, 2016 Director Melton made a motion, seconded by Director Kiley, to approve Director attendance at this event if desired. Motion carried 4-0-0-1 with Director Beverage being absent. 15. CLOSED SESSION The meeting was adjourned to Closed Session at 10:33 a.m. All Directors in attendance were present. Also present were Messrs. Gagen, Marcantonio, and Micalizzi and Mrs. Knight. 15.1. Conference with Legal Counsel — Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: Kent Ebinger and Yorba Linda Taxpayers Association vs. Yorba Linda Water District (OC Superior Court — Case No. 00829548) Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 8 2016-130 The Board reconvened in Open Session at 11:05 a.m. No action was taken during Closed Session that was required to be reported under the Brown Act. 16. ADJOURNMENT 16.1. The meeting was adjourned at 11:06 a.m. A Special Board of Directors Meeting has been scheduled Thursday, July 21, 2016 at 8:30 a.m. The next Regular Board of Directors Meeting will be held Thursday, July 28, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held July 14,2016 at 8:30 a.m. 9