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HomeMy WebLinkAbout2016-10-13 - Board of Directors Meeting Minutes 2016-186 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, October 13, 2016, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The October 13, 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 Melton 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 Phil Hawkins John DeCriscio, Operations Manager Bob Kiley Gina Knight, Human Resources/Risk Mgr Gary Melton Delia Lugo, Finance Manager Annie Alexander, Executive Secretary Cindy Botts, Water Cons Supv/Mgmt Analyst Anthony Manzano, Senior Project Manager Javier Martinez, Water Production Sup Laurie McAllaster, Records Mgmt Admin Malissa Muttaraid, Public Affairs Rep Rick Walkemeyer, Info Systems Admin ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Gene Hernandez, Councilmember, City of Yorba Linda Nitin Patel, CPA and Partner, White Nelson Diehl Evans LLP Modesto Llanos, Member, YLWD Citizens Advisory Committee 4. ADDITIONS/DELETIONS TO THE AGENDA None. Minutes of the YLWD Board of Directors Regular Meeting Held October 13,2016 at 8:30 a.m. 1 2016-187 5. INTRODUCTIONS AND PRESENTATIONS 5.1. MWDSC/MWDOC Director's Report Director Barbre reported on the status of various legislative activities and the current water supply situation. 6. PUBLIC COMMENTS None. 7. CONSENT CALENDAR Director Beverage made a motion, seconded by Director Hawkins, to approve the Consent Calendar. Motion carried 5-0. 7.1. Minutes of the Board of Directors Special Meeting held July 7, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Regular Meeting held July 14, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Minutes of the Board of Directors Special Meeting held July 21 , 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.4. Minutes of the Board of Directors Regular Meeting held July 28, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.5. Minutes of the Board of Directors Regular Meeting held August 11, 2016 Recommendation: That the Board of Director approve the minutes as presented. 7.6. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$9,632,682.43. Minutes of the YLWD Board of Directors Regular Meeting Held October 13,2016 at 8:30 a.m. 2 2016-188 7.7. Renewal of Auto and General Liability Insurance Policy with the Association of California Water Agencies Joint Powers Insurance Authority (ACWA/J P IA) Recommendation: That the Board of Directors approve payment to ACWA/JPIA in the amount of$209,177.00 for renewal of the District's auto and general liability insurance policy through October 1, 2017. 7.8. Purchase of 2017 Hydro Excavator Truck Recommendation: That the Board of Directors approve the purchase of a 2017 Hydro Excavator Truck from Haaker Equipment Company in the amount of$443,873.52. 7.9. Cash and Investment Reports for the Months Ending July 3, 2016 and August 31, 2016 Recommendation: That the Board of Directors receive and file the Cash and Investment Reports for the Months Ending July 31, 2016 and August 31, 2016. 8. ACTION CALENDAR 8.1. Proposed Revisions to Public Funds Investment Policy Mrs. Lugo explained that CA Government Code requires the District's treasurer or chief fiscal officer to provide an investment policy to the Board for consideration on an annual basis. The Board adopted an investment policy for FY 2016/17 in June, however, due to recent internal procedural changes, Section 16 now requires some refinement. Staff will now be presenting investment reports to the Board on a monthly instead of quarterly basis. She also noted that in Section 6, the phrase "with the District's boundaries" needed to be changed to "within the District's boundaries". Director Barbre suggested that legal counsel consider including a definition of the term "material" in the proposed policy as it would assist in the future evaluation of potential conflicts of interest. Mr. Gagen recommended that the Board adopt the policy as presented and stated that he'd look into incorporating Director Barbre's suggestion during the next review process. Minutes of the YLWD Board of Directors Regular Meeting Held October 13, 2016 at 8:30 a.m. 3 2016-189 Director Beverage made a motion, seconded by Director Hawkins, to adopt Resolution No. 16-18 Setting Forth a Public Funds Investment Policy and Rescinding Resolution No. 16-06. Motion carried 5-0 on a roll call vote. 8.2. Audit Reports for Fiscal Year Ending June 30, 2016 Mrs. Lugo explained that White Nelson Diehl Evans LLP (WNDE), the District's external auditors, had completed their audit of the District's financials for FY 2015/16 and rendered an unqualified (or clean) opinion. She then introduced Mr. Patel who provided an overview of WNDE's findings. Mrs. Lugo also indicated that staff would be submitting the report for consideration of the Certificate in Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association. Mr. Wayne Miller, resident, commented on various points of information contained in the report and payoff of the District's $7M line of credit (LOC) with Wells Fargo. At the request of President Collett, Mrs. Lugo provided an overview of the Board's previous discussions related to pay down, pay off, or extending the LOC. Mr. DeCriscio and Mr. Marcantonio also provided clarification regarding the District's historical, current and projected groundwater production percentages. Director Beverage made a motion, seconded by Director Kiley, to receive and file the Comprehensive Annual Financial Report for the Fiscal Year Ending June 30, 2016, the Report on Internal Control, and the Communication to Those in Governance Letter. Motion carried 5-0. President Collett commended staff on their efforts related to the audit process. 8.3. Water and Sewer Facilities Agreement with Yorba Linda Estates, LLC Director Hawkins stated that he'd been advised that his residence may be within 500 feet of this project and that he needed to recuse himself from the discussion and consideration of this matter. Director Hawkins left the room at this time. Minutes of the YLWD Board of Directors Regular Meeting Held October 13, 2016 at 8:30 a.m. 4 2016-190 Mr. Conklin explained that Yorba Linda Estates (YLE) owns or controls approximately 468.9 acres of land which is being entitled through the County of Orange and is known as the Esperanza Hills subdivision. The project will not exceed 340 single-family residential units and is located in an unincorporated area. Hence, it was subject to review and approval of the OC Board of Supervisors (BOS). The project was approved by the BOS, but the Environmental Impact Report was challenged in court. The owner is addressing comments as required by the court and is in the process of resubmitting revised information to the County. Mr. Conklin then provided an overview of some of the stipulations contained in the agreement and responded to questions from the Board. Mr. Brooke Jones, resident, commented on one of the exhibits contained in the agreement, the projected pumping capacity of the Fairmont Booster Pump Station (BPS), the estimated water demand of the Esperanza Hills development project, and the disposition of the raw water connection following construction. Mr. Wayne Miller, resident, commented on the developer's contribution to YLWD and the County's approval process for the project. At the request of President Collett, staff then responded to some of the comments provided by the public. Director Beverage made a motion, seconded by Director Kiley, to approve the Water and Sewer Facilities Agreement between the Yorba Linda Water District and Yorba Linda Estates, LLC. Motion carried 4-0-0-1 with Director Hawkins being absent. Director Hawkins rejoined the meeting at this time. 8.4. On-Call Geotechnical and Material Testing Services for Upcoming Capital Improvement Projects Mr. Conklin explained that staff had prepared a Request for Proposals for material testing services for multiple construction projects and on-call services. Staff then reviewed and ranked each of the submitted proposals and has recommended that the agreement be awarded to Hushmand Associates. Mr. Conklin then responded to questions from the Board regarding the time period of the agreement and related pricing. Minutes of the YLWD Board of Directors Regular Meeting Held October 13, 2016 at 8:30 a.m. 5 2016-191 Director Kiley made a motion, seconded by Director Melton, to authorize execution of a Professional Services Agreement with Hushmand Associates, Inc., in the amount not to exceed $250,000, to provide material testing services for the construction phase of the Fairmont Booster Station Upgrade Project, PRS Rehabilitation Project Phase ll, Well 22 Equipping Project, future pipeline replacement projects, and on- call services as requested by District staff. Motion carried 5-0. 9. DISCUSSION ITEMS 9.1. Draft Debt Management Policy and Disclosure Procedures Mrs. Lugo explained the need for the District to adopt a debt management policy as recommended by the California Debt Investment Advisory Commission and Government Finance Officers Association (GFOA). Staff has been working with Fieldman Rolapp, the District's financial advisors, to draft a policy which will need to be finalized and adopted by the Board by January 1, 2017. Mrs. Lugo then provided an overview of the purpose of a debt management policy and the District's bond debt ratio goal. Staff is planning to present the final draft of this policy at the next regular meeting for Board consideration. Staff is also planning to participate in a rate review with Standard & Poors and Fitch Ratings in early November and it would be advantageous for the District to adopt this policy or at least have a draft prior to those meetings. Mrs. Lugo then responded to questions from the Board regarding bond ratios, interest rates, and the highlighted areas in the draft policy. Following brief discussion, the Board requested that the final draft of the policy be presented to the Board for consideration at the special meeting scheduled October 17, 2016 so that Mrs. Lugo could be present to respond to any questions. Director Kiley left the meeting at this time. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report None. 10.2. Directors' Reports None. 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. Minutes of the YLWD Board of Directors Regular Meeting Held October 13, 2016 at 8:30 a.m. 6 2016-192 At the request of President Collett, Councilmember Hernandez responded to questions regarding future construction of the Lakeview overpass. Mr. DeCriscio asked Mr. Martinez to report on the status of a failure at Well No. 15 following which they responded to questions regarding the well depth and capacity, and reasons why it couldn't be drilled any deeper. Mr. DeCriscio then reported that Operations and Engineering staff had been working with the CA Department of Public Health on its annual sanitary survey for which the District had no significant deficiencies. Staff expects to receive the finalized report within the next month. Mr. Lugo reported that staff was preparing the Comprehensive Annual Financial Report for submission to GFOA, updating policies, and participating in off-site training. Mrs. Botts reported on the current and historical conservation percentage for the month of September. Mrs. Knight reported that staff had finalized 3 policies and would soon be conducting confined space rescue training. 10.4. General Counsel's Report None. 10.5. Future Agenda Items and Staff Tasks President Collett requested that staff provide the Board with a report on the age and production capacity of the District's wells at a future meeting. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Collett / Melton) • Minutes of the meeting held September 27, 2016 at 4:00 p.m, were provided in the agenda packet. ■ Next meeting is scheduled November 22, 2016 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) ■ Minutes of the meeting held September 20, 2016 at 10:00 a.m. were provided in the agenda packet. Minutes of the YLWD Board of Directors Regular Meeting Held October 13, 2016 at 8:30 a.m. 7 2016-193 ■ Next meeting is scheduled October 26, 2016 at 11:00 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 September 26, 2016 at 8:30 a.m. were provided in the agenda packet. ■ Next meeting is scheduled October 24, 2016 at 8:30 a.m. 12. INTERGOVERNMENTAL MEETINGS The Directors and staff reported on their attendance at the following meetings. 12.1. OCSD Board — September 28, 2016 (Kiley) Director Kiley was not present to provide a report on this meeting. 12.2. YL Planning Commission - September 28, 2016 (Beverage) 12.3. ISDOC — September 29, 2016 (Hawkins/Kiley) Director Hawkins did not attend and Director Kiley was not present to provide a report on this meeting. 12.4. YL City Council — October 4, 2016 (Beverage) 12.5. MWDOC Board — October 5, 2016 (Melton) 12.6. OCSD Operations Committee — October 5, 2016 (Kiley/Beverage) 12.7. OCWD Board — October 5, 2016 (Collett) 12.8. WACO — October 7, 2016 (Collett/Kiley) 12.9. LAFCO — October 12, 2016 (Beverage — As Needed) Director Beverage did not attend this meeting. 12.10 YL Planning Commission — October 12, 2016 (Melton) This meeting was cancelled. Minutes of the YLWD Board of Directors Regular Meeting Held October 13,2016 at 8:30 a.m. 8 2016-194 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from October 14, 2016 — November 30, 2016 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. OCWD Groundwater Adventure Tour— October 20, 2016 WaterNow Alliance Summit — October 25-26, 2016 No Directors expressed an interest in attending either of these events. 15. CLOSED SESSION The meeting was adjourned to Closed Session at 9:55 a.m. All Directors in attendance were present. Also present were Messrs. Gagen and Marcantonio and Mrs. Knight. 15.1. Conference with Legal Counsel — Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) 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 — Existing Litigation Pursuant to Paragraph (1) 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) 15.3. Conference with Legal Counsel — Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: City of Yorba Linda vs. Nicola Saba, et al. (OC Superior Court — Case No. 00847807) Minutes of the YLWD Board of Directors Regular Meeting Held October 13,2016 at 8:30 a.m. 9 2016-195 15.4. Conference with Legal Counsel — Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: City of Yorba Linda vs. Harry Schlitz, et al. (OC Superior Court — Case No. 00847840) Messrs. Gagen and Marcantonio and Mrs. Knight left the Closed Session prior to discussion of the following matter. 15.5. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 10:25 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 10:26 a.m. A Special Board of Directors Meeting has been scheduled Monday, October 17, 2016 at 9:00 a.m. The next Regular Board of Directors Meeting will be held Thursday, October 27, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held October 13, 2016 at 8:30 a.m. 10