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HomeMy WebLinkAbout2016-07-28 - Board of Directors Meeting Mintues 2016-138 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, July 28, 2016, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The July 28, 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 President Collett led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Ric Collett, President Marc Marcantonio, General Manager Phil Hawkins (Arrived at 8:31 a.m.) Steve Conklin, Engineering Manager Bob Kiley Gina Knight, Human Resources/Risk Manager Gary Melton Delia Lugo, Finance Manager Damon Micalizzi, Public Information Manager DIRECTORS ABSENT Art Vega, Information Technology Manager Mike Beverage, Vice President Annie Alexander, Executive Secretary Javier Martinez, Water Production Superintendent Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Gene Hernandez, Councilmember, City of Yorba Linda Modesto Llanos, YLWD Citizens Advisory Committee Member Jeff Decker, Resident Susan Decker, Resident Jon Hansen, Resident Al Nederhood, Resident Ed Rakochy, Resident Julia Schultz, Resident Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 1 2016-139 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Marcantonio requested to add the following item to the agenda as Item No. 8.6. and noted that a revised agenda report for Item 8.2. had been distributed. 4.1. Floor Alert Opposing SB 814 — Drought: Excessive Water Use: Urban Retail Water Suppliers, by Senator Jerry Hill (D-San Mateo) Director Kiley made a motion, seconded by Director Melton, to add this matter to the agenda as Item No. 8.6. as it came to the District's attention subsequent to posting the agenda and requires immediate action. Motion carried 3-0-0-2 with Directors Beverage and Hawkins being absent. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. MWDSC/MWDOC Director's Report Director Barbre reported on the status of algae plumes at Diamond Valley Lake and Castaic Lake, a preserve that's been created on the Colorado River near Blythe, and the State's recent drought related activities. He also responded to questions related to extending the height of Shasta Reservoir. 6. PUBLIC COMMENTS • Mr. Jeff Decker, resident, commented on the status of litigation and the upcoming election. He also provided an overview of a handout he had compiled which was distributed to the Board. Mr. Ed Rakochy, resident, commented on an article published in the LA Times, the District's estimated legal fees associated with litigation, postponement of the bond refunding process, the recent water rate increase, and a statement attributed to President Collett. Mrs. Julia Schultz, resident, commented on recouping the District's costs associated with litigation. Mr. Al Nederhood, resident, commented on Director Beverage's service on the Board, the upcoming election, and the recall petition. President Collett noted that the District served portions of Anaheim, Brea, and Placentia in addition to Yorba Linda. Mr. Jon Hansen, resident, commented on efforts related to the recall petition, the recent water rate increase, previous discussions he participated in with two of the Directors, and customers' conservation efforts. Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 2 2016-140 7. CONSENT CALENDAR Director Kiley made a motion, seconded by Director Hawkins, to approve the Consent Calendar. Motion carried 4-0-0-1 with Director Beverage being absent. 7.1. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify, and authorize disbursements in the amount of$3,949,120.07. 7.2. Cash and Investment Reports for Period Ending June 30, 2016 Recommendation: That the Board of Directors receive and file the Cash and Investment Reports for the Period Ending June 30, 2016. 8. ACTION CALENDAR 8.1. Certificates of Sufficiency of Petitions to Recall Directors Bob Kiley and Gary Melton Mr. Marcantonio explained that on March 10, 2016, proponents had served Directors Kiley and Melton with notices of intent to circulate a recall petition. These same notices were then published in the OC Register on March 18, 2016 after which the OC Registrar of Voters (ROV) approved the format of the petitions on April 5, 2016. Based on calculations specified in the Elections Code, the proponents needed to collect 9,520 valid signatures on each petition within 120 days of them being approved. The proponents then filed the completed petitions with the ROV on June 9, 2016 after which the ROV had 30 days to perform the signature verification process (excluding weekends and holidays). On July 21, 2016, the ROV notified the District that the number of valid signatures on both petitions were sufficient. Staff estimates that the District will be billed approximately $78,000 for the ROV's signature verification services. Director Kiley made a motion, seconded by Director Melton, to accept the Certificates of Sufficiency of Petitions to Recall Directors Bob Kiley and Gary Melton. Motion carried 4-0-0-1 with Director Beverage being absent. 8.2. Issuance of Order Stating that an Election Shall be Held Mr. Marcantonio explained that on July 21, 2016, the ROV had notified the District that the number of valid signatures on the petitions to recall Directors Kiley and Melton were sufficient. Following acceptance of the Certificates of Sufficiency, the Board has 14 days to issue an order to hold a recall election. Additionally, the Board must request the OC Board Supervisors to permit the ROV to conduct the election on the District's Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 3 2016-141 behalf and that it be consolidated with the General Election on November 8, 2016. All of these actions must be performed by resolution. Mr. Marcantonio then provided an overview of what questions would be on the ballot and general qualifications for candidacy. He noted that the filing period for the recall election would begin upon adoption of the resolution and end on August 17, 2016. He also noted that as Director Beverage had determined not to run for reelection, the candidate filing period for the general election would be extended to August 17, 2016 as well. Mr. Marcantonio further explained that in order to mirror previous action taken by the Board in relation to the general election, the resolution stipulated that candidate statements could not be any longer than 200 words and would not be paid for by the District. He also stated that the recent estimate to conduct both the general election and the recall election was between $56,662 and $72,115 whereas the previous estimate was $148,000. Mr. Marcantonio then responded to related questions from the Board. The Board voted 4-0-0-1 on a roll call with Director Beverage being absent to adopt Resolution No. 16-14 "Ordering that an Election Shall be Called and Consolidated with the General Election on November 8, 2016 for the Purpose of Submitting to the Registered Electors of the District the Question of Whether Director Robert R. Kiley and Director Gary T. Melton Should be Recalled from Office". 8.3. Board of Directors Policies and Procedures Manual Mr. Marcantonio explained that one of the provisions included in the Board's current policies and procedures manual is that it be reviewed on an annual basis. As such, staff presented this document to the Board for review at a previous meeting in order to receive feedback regarding potential revisions. Staff has also been updating other policies, including separating those relate to the Board from those related to District employees. As part of this housekeeping process, staff identified some language in the District's current and previous personnel rules that was inadvertently left out of the manual when it was first adopted last year. Additionally, staff has spent some time reviewing the manual and would like to suggest some minor revisions in order to enhance clarification and touch on the reimbursement of miscellaneous gratuities and the public presentation of electronic materials at. Board meetings. The revisions previously requested by the Board and additional suggested revisions by staff and legal counsel have been incorporated into the manual for the Board's consideration. Mr. Marcantonio then stated that a minor revision to the resolution was needed as Section 3 should have been identified as Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 4 2016-142 Section 2. Mrs. Delia then responded to questions from the Board in relation to the meal reimbursement amounts and process. The Board voted 4-0-0-1 on a roll call.with Director Beverage being absent to approve Resolution No. 16-12 as revised, "Adopting a Board of Directors Policies and Procedures Manual and Rescinding Resolution No. 15-05". 8.4. Sewer Charges Collected on Tax Roll for Fiscal Year 2016/17 Mr. Marcantonio explained that the District collected the Sewer Maintenance Charge on the County's property tax rolls for those customers connected to the sewer system that either receive water service from another purveyor or don't receive a water bill from the •• District. These charges are subject to the substantive and procedural requirements of Prop 218. The County requires that the Board adopt a resolution directing that these charges to be added to the tax rolls for the properties being assessed. Mrs. Lugo responded to questions from the Board regarding the sewer rates. The Board voted 4-0-0-1 on a roll call with Director Beverage being absent to approve Resolution No. 16-13 "Electing to Have Certain Sewer Maintenance Charges Collected on the FY 2016/17 Tax Roll and Superseding Resolution No. 15-17". 8.5. Terms and Conditions for Water and Sewer Service with Zelman Development Co. Mr. Conklin explained that the proposed terms and conditions with Zelman Development Co. were for the Yorba Linda Town Center. Staff is looking forward to working with the City and the developer on this project. Mr. Conklin then responded to questions from the Board regarding the abandonment of pre-existing lines. Director Hawkins made a motion, seconded by Director Kiley, to approve the Terms and Conditions for Water and Sewer Service with Zelman Development Co., Job No. 201610. Motion carried 4-0-0-1 with Director Beverage being absent. Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 5 2016-143 8.6. Floor Alert Opposing SB 814 — Drought: Excessive Water Use: Urban Retail Water Suppliers, by Senator Jerry Hill (D-San Mateo) Mr. Micalizzi explained that this matter didn't come to staff's attention until after the agenda had already been posted. This bill is set to go to the Assembly floor on August 1, 2016 and contains some troublesome language which, during a Governor-declared drought state of emergency, could require agencies to: enforce laws against excessive water use; set water budgets for customers with excessive water use; establish tiered rate structures; and support a costly unfunded state-mandated program. Agencies throughout the state are signing on to this floor alert in order to voice their opposition to the bill. Mrs. Susan Decker, resident, commented in favor of rate structures that were tailored to the number of residents and acreage associated with individual properties. Mr. Modesto Llanos, resident and member of YLWD's Citizens Advisory Committee, commented on the proposed bill and read an e-mail he previously sent to the Board's attention asking them to abstain from voting on this matter. Director Barbre noted that MWDOC's Board had voted unanimously to oppose the proposed bill. He then provided an overview of IRWD's process for setting up water service and tiered rate structure. He further stated that this proposed bill would force agencies to determine how much water each customer would be allowed to use. Mrs. Julia Shultz, resident, thanked Director Barbre for his remarks, spoke against the proposed bill, and asked the Board to oppose it. - The Board briefly discussed their personal opinions regarding tiered rate structures following which Mr. Marcantonio clarified that staff was not making a recommendation in favor or against one rate structure over the other. Director Hawkins made a motion, seconded by Director Melton, to authorize the General Manager to sign on to the Floor Alert Opposing SB 814 on behalf of the District. Motion carried 4-0-0-1 with Director Beverage being absent. 9. REPORTS, INFORMATION ITEMS, AND COMMENTS 9.1. President's Report None. Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 6 2016-144 9.2. Directors' Reports None. 9.3. General Manager's Report Mr. Marcantonio asked each of the managers or their designees to provide a report regarding activities within their respective departments. Mr. Conklin reported on the status of the Fairmont Booster Pump Station Upgrade Project and the District's participation in a water audit program offered by MWDOC. He noted that YLWD's water losses fell mid-range in comparison to the 18 other participating agencies. Staff in the Operations and Engineering departments will continue their efforts to reduce water losses in the District's distribution system. Mrs. Lugo reported that staff had been preparing for the field audit scheduled late August. As a result of the recent court ruling, staff will be able to move forward with projects that have been delayed such as refunding of the 2008 Certificates of Participation and extending the Line of Credit with Wells Fargo. Mr. Martinez reported on the current water system configuration and water production trends for the month to date as compared to July 2015. Staff has increased water levels for reservoirs located in urban interface areas due to extreme weather conditions. Staff is also preparing for potential rotating outages which may be called for by SCE. President Collett and Mr. Marcantonio briefly commented on a news story regarding a break in at another community's reservoir which resulted in the issuance of a do-not-drink water advisory. Mr. Marcantonio also responded to questions from the Board regarding the need for additional security measures at District facilities. Mr. Vega reported on the status of a lease agreement with Konica Minolta for 3 copiers and the number of blocked threats to the District's computer network during the previous month. Mr. Micalizzi reported'on the status of legislative affairs, production trends for the previous few weeks, and media calls related to the court case. Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 7 2016-145 Mrs. Knight reported staff had been working on various policies and facilitating employee training related to customer service and confined space rescue. Additionally, the District's Safety Officer and a representative from ACWA/JPIA performed a risk assessment on the Highland Reservoir Booster Pump Station and the District's main campus. Staff expects to receive the results in the next few weeks. 9.4. General Counsel's Report None. 9.5. Future Agenda Items and Staff Tasks None. 10. COMMITTEE REPORTS 10.1. Interagency Committee with MWDOC and OCWD (Collett/ Melton) • Minutes of the meeting held July 26, 2016 at 4:00 p.m. will be provided when available. President Collett provided a brief report regarding matters discussed during the meeting including projected fee increases for annual water system inspections required by the state. Mr. Marcantonio stated that the District's annual fee would increase from $14,694 to $48,978. • Next meeting is scheduled September 27, 2016 at 4:00 p.m. 10.2. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) • Minutes of the meeting held July 27, 2016 at 9:00 a.m. will be provided when available. President Collett briefly commented on the City's efforts related to the Landscape Maintenance Assessment District's which were discussed during the meeting. • Next meeting is yet to be scheduled. 10.3. Interagency Committee with City of Placentia and Golden State Water Co. .(Collett / Kiley) • Next meeting is yet to be scheduled. Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 8 2016-146 10.4. Citizens Advisory Committee (Melton) ■ Minutes of the meeting held June 27, 2016 at 8:30 a.m. will be provided when available. ■ Minutes of the meeting held July 25, 2016 at 8:30 a.m. will be provided when available. Mr. Micalizzi noted that during the meeting, staff provided the Committee with a recap of the FY 2016/17 budget and the new water/sewer rates. ■ Next meeting is scheduled August 22, 2016 at 8:30 a.m. 11. INTERGOVERNMENTAL MEETINGS The Directors and staff reported on their attendance at the following meetings. 11.1. YL City Council — July 19, 2016 (Beverage) Director Beverage was not present to provide a report on his attendance at this meeting. 11.2. MWDOC Board — July 20, 2016 (Melton) 11.3. OCWD Board — July 20, 2016 (Kiley) 11.4. OCSD Board — July 27, 2016 (Kiley/Beverage)' 11.5. YL Planning Commission —July 27, 2016 (Hawkins) 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from July 29, 2016 —August 31, 2016 The Board reviewed the activity calendar. President Collett stated that he would not be able to attend the next OCWD Board meeting and asked if another Director could attend in his place. Director Kiley offered to check his schedule. 13. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 13.1. ACWA Region 8 Disaster Preparedness Seminar—August 4, 2016 OCWD H2O Learning Center Dedication —August 5, 2016 CASA Annual Conference —August 10-12, 2016 OCWD-OCSD Community Open House —August 13, 2016 Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 9 2016-147 Director Hawkins made a motion, seconded by Director Kiley, to approve Director attendance at these events if desired. Motion carried 4-0-0-1 with Director Beverage being absent. 14. CLOSED SESSION The meeting was adjourned to Closed Session at 9:39 a.m. All Directors in attendance were present. Also present were Messrs. Gagen, Marcantonio, and Micalizzi and Mrs. Knight. 14.1. 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) 14.2. Conference with Legal Counsel — Potential Initiation of Litigation Pursuant to Paragraph (4) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: Irvine Ranch Water District vs. Orange County Water District'(OC Superior Court— Case No. 00858584) 14.3. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 10:26 a.m. President Collett reported that there was no reportable action in relation to Item No. 14.1. Mr. Gagen reported that in regards to Item No. 14.2., the Board had voted unanimously (with Director Beverage being absent) to answer the complaint in the IRWD vs. OCWD lawsuit (Case No. 00858584). No other action was taken during Closed Session that was required to be reported under the Brown Act. 15. ADJOURNMENT 15.1. The meeting was adjourned at 10:27 a.m. The next Regular Board of Directors Meeting will be held Thursday, August 11, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held July 28,2016 at 8:30 a.m. 10