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.
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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.
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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.
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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.
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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.
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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.
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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.
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■ 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.
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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)
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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
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