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HomeMy WebLinkAbout2016-09-08 - Board of Directors Meeting Minutes 2016-169 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, September 8, 2016, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The September 8, 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 Director Kiley 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 Gina Knight, Human Resources/Risk Manager DIRECTORS ABSENT Damon Micalizzi, Public Information Manager Phil Hawkins Art Vega, Information Technology Manager Gary Melton Annie Alexander, Executive Secretary Cindy Botts, Water Cons Supv/Mgmt Analyst Laurie McAllaster, Records Mgmt Admin Kelly McCann, Senior Accountant ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Gene Hernandez, Councilmember, City of Yorba Linda Cyrus Torabi, Attorney, Stradling Yocca Carlson & Rauth 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. MWDSC/MWDOC Director's Report None. Minutes of the YLWD Board of Directors Regular Meeting Held September 8,2016 at 8:30 a.m. 1 • 2016-170 6. PUBLIC COMMENTS Mr. Al Nederhood, resident, commented on the FYS 2015/16 and 2016/17 budgets, the water rate increase, anticipated penalties from the State, and revenue received in FY 2015/16. He also remarked on the budgeted amounts for water related costs and supplies and services in the FY 2016/17 budget, as well as the recall election. Mr. Brooke Jones, resident, commented on the anticipated shortfall due to the drought, the water rate increase and its impact on customers with fixed incomes and large lots, and the potential impact of the Anaheim Sustainability Center on nearby residences, the Santa River and groundwater in the area. Mr. Ed Rakochy, resident, commented on a previous edition of the District's newsletter regarding the water/sewer rate change, the State's conservation mandates and impact on YLWD's budget. He also commented on a statement attributed to President Collett, the FY 2016/17 budget, the District's financial reports, and discrepancies related to the value of YLWD's infrastructure. 7. CONSENT CALENDAR Director Kiley made a motion, seconded by Director Beverage, to approve the Consent Calendar. Motion carried 3-0-0-2 with Directors Hawkins and Melton being absent. 7.1. Minutes of the Board of Directors Special Meeting held June 23, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Regular Meeting held June 23, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Reschedule Board Meeting in November Recommendation: That the Board of Directors reschedule the regular meeting on Thursday, November 24, 2016 to Wednesday, November 23, 2016 at 8:30 a.m. 7.4. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$584,984.55. Minutes of the YLWD Board of Directors Regular Meeting Held September 8,2016 at 8:30 a.m. 2 2016-171 7.5. Declaration of Restrictive Covenants with Yorba Linda Apartments, RRE Yorba Linda Holdings, LLC. Recommendation: That the Board of Directors authorize the President and General Manager to execute the Declaration of Restrictive Covenants with the Yorba Linda Apartments. 8. ACTION CALENDAR 8.1. Revenue Refunding Bonds, Series 2016A Mr. McCann explained that in January 2016, the Board had determined to move forward with advance refunding of the 2008 Certificates of Participation (COP). In order to formally begin the process, the Board will need to adopt a resolution and approve the execution of certain documents. Copies of these documents were included in the agenda packet with the exception of the Preliminary Official Statement. The latter was provided to the Board and made available to the public prior to the meeting. Mr. McCann then introduced Mr. Cyrus Torabi, the District's bond counsel, who explained the purpose of the related documents. Mr. McCann and Mr. Torabi then responded to questions from the Board regarding the escrow process and the District's estimated savings. Mr. Al Nederhood, resident, commented on the estimated savings, the life of the bonds, revising the FY 2016/17 budget, and the upcoming recall ' election. Mr. Ed Rakochy, resident, commented on a draft document made available on the District's website, the District's previous attempt to move forward with the refunding process, and the prior and current estimated savings. Director Beverage made a motion, seconded by Director Kiley, to adopt Resolution No. 16-17 Authorizing the Issuance Not to Exceed $28,000,000 Refunding Revenue Bonds, Series 2016A and Approving the Execution of Certain Documents in Connection Therewith and Certain Other Matters. Motion passed 3-0-0-2 on a roll call vote with Directors Hawkins and Melton absent. 8.2. Vehicle Replacement Purchasesfor the Engineering and Operations Departments Mr. DeCriscio explained that the FY 2016/17 budget included funding for the replacement of two vehicles. Following evaluation of the Engineering and Operations departments' needs, staff obtained quotes from multiple Minutes of the YLWD Board of Directors Regular Meeting Held September 8,2016 at 8:30 a.m. 3 2016-172 dealerships and is recommending that both vehicles be purchased from the low bidder. The cost of one vehicle will be offset by approximately $10K as it was involved in an accident and declared a total loss by the District's insurance provider. Director Beverage made a motion, seconded by Director Kiley, to authorize the General Manager to purchase two vehicles from George Chevrolet for the total amount of $56,383. Motion carried 3-0-0-2 with Directors Hawkins and Melton being absent. 9. DISCUSSION ITEMS 9.1. Financial Scenarios Related to Line of Credit, Certificates of Participation, Reserves, and Water Rates Mrs. Botts stated that staff was presenting additional financial scenarios as requested by the Board at the last meeting. She noted that Raftelis had adjusted the financial model and that the second slide of the presentation had been revised. Mrs. Botts explained that there were 5 scenarios that included one or more of the following factors: reduction of the water rate for 1" meters; future annual rate increases; payoff of certain debts; and reducing capital reserves. She then reviewed the baseline and each of the scenarios and responded to questions from the Board regarding the impact on the District's debt ratio and reserves. She also clarified that each of the scenarios included projected costs for approved capital improvement projects through FY 2021. Mr. Brooke Jones, resident, commented on the Fairmont Booster Pump Station Upgrade Project and potential developer contributions associated with a proposed development project. Mr. Al Nederhood, resident, commented on the slides contained in the presentation, the impact on reserves as reflected in the scenarios, and revenue received in FY 2015/16. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report None. 10.2. Directors' Reports ■ UWI Annual Conference —August 24-26, 2016 (Kiley) Director Kiley provided a brief report on his attendance at this event. Minutes of the YLWD Board of Directors Regular Meeting Held September 8,2016 at 8:30 a.m. 4 2016-173 10.3. 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 various construction projects including the Waterline Replacement Project, Well 21 Project, and Richfield Road Water Main Project. Mr. DeCriscio reported that staff had recently participated in fire hydrant maintenance training and responded to questions from the Board regarding the difference between dry and wet barrels, associated training for firefighters, and the District's hydrant and valve maintenance programs. Mr. McCann reported that staff had received the draft Comprehensive Annual Financial Report (CAFR) from the auditors and that no year-end adjustments were necessary. He stated that staff would be preparing the CAFR for future submission to the Government Finance Officers Association and that Mr. Nitin Patel from White Nelson Diehl Evans would' be attending the meeting scheduled October 13, 2016 to present it to the Board. Mr. Vega reported on the resolution of an issue with one of the District's major software programs and the number of blocked threats during the previous month. Mr. Micalizzi reported on conservation trends during the month and topics discussed during a water shortage contingency workshop and other meetings he had attended. He and Mr. Marcantonio then reported on the status of legislative affairs and potential revisions to the State's conservation regulations. Mrs. Knight reported on staff's activities related to updating and developing various policies. Mr. Marcantonio noted that while the Anaheim Sustainability Center would not be located within the District's service area, staff had contacted OCWD to obtain information regarding potential impact on the groundwater basin. 10.4. General Counsel's Report None. 10.5. Future Agenda Items and Staff Tasks None. Minutes of the YLWD Board of Directors Regular Meeting Held September 8,2016 at 8:30 a.m. 5 2016-174 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Collett / Melton) • Next meeting is scheduled September 27, 2016 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) • Minutes of the meeting held August 23, 2016 at 11:00 a.m. were provided in the agenda packet. • Next meeting scheduled September 20, 2016 at 10:00 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 August 29, 2016 at 8:30 a.m. were provided in the agenda packet. Director Beverage briefly commented on matters discussed during the meeting. • Next meeting is scheduled September 26, 2016 at 8:30 a.m. 12. INTERGOVERNMENTAL MEETINGS The Directors and staff reported on their attendance at the following meetings. 12.1. YL City Council — September 6, 2016 (Beverage) 12.2. MWDOC Board — September 7, 2016 (Staff) 12.3. OCSD Operations Committee — September 7, 2016 (Kiley/Beverage) 12.4. OCWD Board — September 7, 2016 (Collett) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from September 9, 2016 — October 31, 2016 The Board reviewed the activity calendar and made no changes. Minutes of the YLWD Board of Directors Regular Meeting Held September 8,2016 at 8:30 a.m. 6 2016-175 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. AWWA-CA-NV Annual Conference — October 24-27, 2016 ACWA/JPIA Fall Conference — November 28-29, 2016 ACWA Fall Conference — November 29-December 2, 2016 Director Kiley made a motion, seconded by Director Beverage, to approve Director attendance at these events if desired. Motion carried 3-0-0-2 with Directors Hawkins and Melton being absent. 15. CLOSED SESSION The meeting was adjourned to Closed Session at 9:58 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) 15.2. Conference with Legal Counsel — Pending Litigation Pursuant to Subdivision (a) 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) 15.3. Conference with Legal Counsel — Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: City of Anaheim et al. vs. Cohen et al. (3rd Appellate District — Case No. C091918, OC Superior Court — Case No. 34-2013-80001529) The Board reconvened in Open Session at 10:36 a.m. No action was taken during Closed Session that was required to be reported under the Brown Act. Minutes of the YLWD Board of Directors Regular Meeting Held September 8,2016 at 8:30 a.m. 7 2016-176 16. ADJOURNMENT 16.1. The meeting was adjourned at 10:37 a.m. The next Regular Board of Directors Meeting will be held Thursday, September 22, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held September 8,2016 at 8:30 a.m. 8