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HomeMy WebLinkAbout2016-12-08 - Board of Directors Meeting Minutes 2016-225 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, December 8, 2016, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The December 8, 2016 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by Director Hawkins at 8:32 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 Hawkins led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Andrew Hall, Director Marc Marcantonio, General Manager Phil Hawkins, Director Steve Conklin, Engineering Manager Brooke Jones, Director John DeCriscio, Operations Manager Wayne Miller, Director Gina Knight, HR/Risk and Safety Manager Al Nederhood, Director Delia Lugo, Finance Manager Damon Micalizzi, Public Information Manager Art Vega, Information Technology Manager Annie Alexander, Executive Secretary Cindy Botts, Water Consv Sup/Mgmt Analyst Cat Erbacher, Water Conservation Rep Laurie McAllaster, Records Mgmt Admin Malissa Muttaraid, Public Affairs Representative Rachel Padilla, Customer Service Supervisor ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Gene Hernandez, Councilmember, City of Yorba Linda Tom Lindsey, Mayor, City of Yorba Linda 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Marcantonio indicated that a correction was needed in the staff report for Item No. 8.2. Staff is recommending the purchase of one vehicle, not two. Minutes of the YLWD Board of Directors Regular Meeting Held December 8, 2016 at 8:30 a.m 1 2016-226 5. SEATING OF DIRECTORS 5.1. Reorganization of the Board of Directors and Appointment of Officers Mr. Marcantonio explained that pursuant to the Board of Directors' Policies and Procedures (Resolution No 16-12), a President and Vice President of the Board shall be elected annually at the District's reorganization meeting held at the first meeting of the Board in December of every year. Additionally, the Board is required to appoint the Municipal Corporation Officers of Secretary, Assistant Secretary, and Treasurer. Mr. Marcantonio provided an overview of the powers and duties of the aforementioned officers and noted that previously, he had been appointed as Secretary, Ms. Alexander as Assistant Secretary, and Mrs. Lugo as Treasurer. Director Jones nominated Director Miller to serve as President. Director Nederhood seconded the nomination. Director Hall suggested that for the purposes of continuity, Director Hawkins serve as President. The Board of Directors voted 5-0 to elect Director Miller as President for the next calendar year. Director Hawkins then turned the meeting over to President Miller as the presiding officer. Director Jones made a motion, seconded by Director Hawkins, to elect Director Nederhood to serve as Vice President for the next calendar year. Motion carried 5-0. Director Hawkins made a motion, seconded by Director Jones, to appoint Mr. Marcantonio as Secretary, Ms. Alexander as Assistant Secretary, and Mrs. Lugo as Treasurer for the next calendar year. Motion carried 5-0. 6. INTRODUCTIONS AND PRESENTATIONS 6.1. MWDSC/MWDOC Director's Report Director Barbre offered his congratulations to the new members of the Board and stated that he would be making arrangements for a tour of the Diemer Treatment Plant. He noted that YLWD was one of very few agencies in the area with access to dual water sources. He also commented on the City's decision to transfer responsibility for sewer service to the District, the associated seat on Orange County Sanitation District's (OCSD) Board of Directors, litigation related to the County of Orange's bankruptcy, and previous legislation proposing the consolidation Minutes of the YLWD Board of Directors Regular Meeting Held December 8,2016 at 8:30 a.m. 2 2016-227 of Orange County water districts. Director Barbre then commented on the California WaterFix, the State Water Resources Control Board's (SWRCB) drought emergency regulations, various tours provided by MWDSC, and responded to questions from the Board. 7. PUBLIC COMMENTS Mayor Tom Lindsey congratulated the new Board members on their recent election and commented on the sewer transfer and associated seat on OCSD's Board. He then commented on his previous experience serving as the City's liaison to the District, Director Barbre's knowledge and expertise, and the working relationship between YLWD and the City of Yorba Linda. He also encouraged the new Board to keep the joint agency committee meetings in place. Councilmember Hernandez commended Director Barbre and expressed his appreciation for MWDSC's educational tours. He also encouraged the new Board to consider maintaining the joint agency committee meetings and praised District staff. Councilmember Hernandez wished the new Board well and commented on SWRCB's conservation mandate. Mr. Kent Ebinger, resident, welcomed the new Board members and suggested that the District post monthly financial statements on its website and consider implementing an assistance program for low income customers. Mr. Greg Schultz, resident, welcomed the new Board members and commented on YLWD's awards for its budget and audit documents and remarks made by a member of the public at the last meeting related to the District's financials. He also suggested that the Board consider conducting its meetings in the evenings and commented on previous requests from the public for the District to refund revenue received from administrative penalties and the potential liability should this occur. Mr. Jon Hansen, resident, welcomed the new Board members and commented on previous requests from the public for YLWD to provide a refund to District customers, similar to what some insurance providers do at the end of the year. He also remarked on the District's historical revenue and suggested implementation of an assistance program for low income customers. Mrs. Susan Decker, resident, thanked for the new Board members for their work prior to being elected and commented on remarks attributed to her regarding the District's financials. Mrs. Julia Schultz, resident, welcomed the new Board and expressed her concerns related to the election campaign. She also commended staff for their work supporting the District's operations. Minutes of the YLWD Board of Directors Regular Meeting Held December 8, 2016 at 8:30 a.m. 3 2016-228 Mr. Ben Parker, resident, complimented the new Board members for their conduct during the election campaign. 8. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Hall, to approve the Consent Calendar with the correction to Item No. 8.2. Motion carried 5-0. 8.1. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$496,964,73. 8.2. Vehicle Replacement Purchase Recommendation: That the Board of Directors authorize the General Manager to purchase one two vehicles from George Chevrolet for the total amount of$30,227.93. 8.3. Terms and Conditions for Water and Sewer Service with HQT HOMES 215, LLC. Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with HQT HOMES 215, LLC., Job No. 2016-14. 9. ACTION CALENDAR 9.1. Amendments to the District's Conflict of Interest Code Mr. Marcantonio explained that the Political Reform Act requires every local government agency to review its Conflict of Interest Code on a biennial basis. Staff recently reviewed the District's code and identified some minor revisions. Amendments must be submitted in the County's eDisclosure System by December 30, 2016 and aren't considered to be in effect until approved by the Orange County Board of Supervisors. Director Hawkins made a motion, seconded by Director Hall, to approve Resolution No. 16-22 Adopting a Conflict of Interest Code which Supersedes all Prior Conflict of Interest Codes and Amendments Previously Adopted. Motion carried 5-0 on a Roll Call vote. Minutes of the YLWD Board of Directors Regular Meeting Held December 8, 2016 at 8:30 a.m. 4 2016-229 9.2. Establishment of Committees and Committee, Agency and Intergovernmental Meeting Assignments Mr. Marcantonio explained that pursuant to the Board of Directors' Policies and Procedures (Resolution No. 16-12), the newly elected President was responsible for making committee, agency, and intergovernmental meeting assignments, subject to consent of the Board, following the annual reorganization of the Board of Directors. Additionally, the purpose of each established committee is to be reviewed by the Board, prior to making these assignments, in order to determine their continuing relevance. The previous Board established three joint/interagency committees and one citizens advisory committee. Two Board members will also need to be assigned to serve as Active and Alternate Directors for the Orange County Sanitation District (OCSD) and historically, the Directors have attended a number of intergovernmental meetings on a regular basis. Mr. Marcantonio then provided an overview of the Directors' compensation for attendance at these meetings and suggested that requests for assignments be submitted to President Miller by Wednesday, December 14, 2016. He noted that the Board could elect to extend this process, however the assignments for OCSD would need to be made as soon as possible in order to avoid a vacancy for an extended period of time. Director Hawkins suggested that the Directors e-mail their top three choices to President Miller and that assignments be made at the next regular Board meeting. Mr. Gagen instructed the Board to e-mail their preferences directly to President Miller and to copy Mr. Marcantonio, not any other members of the Board. Director Hawkins made a motion, seconded by Director Hall, that the Board of Directors: (1) consider the currently established committees and determine their continuing relevance; and (2) review the available committee, agency and intergovernmental meeting assignments and provide their preferences to President Miller by Wednesday, December 14, 2016. Motion carried 5-0. 9.3. Determination of Agency Designated Representative Mrs. Knight explained that on October 27, 2016, the previous Board designated the former Board President as the District's representative to negotiate with the General Manager regarding his salary and benefits and present a recommendation at a future meeting. On November 21, 2016, the previous Board voted to have the new Board negotiate the terms of Minutes of the YLWD Board of Directors Regular Meeting Held December 8,2016 at 8:30 a.m. 5 2016-230 the General Manager's employment agreement. As the former designated representative is no longer with the District, the new Board needs to identify a replacement to continue negotiations with the General Manager. Pursuant Government Code § 54957.6, this action will need to occur prior to entering into Closed Session to discuss the General Manager's employment agreement. The Board briefly discussed the possibility of having more than one designated representative, the negotiation process, and the benefits of having general counsel serve as the designated representative. Mrs. Knight clarified that the Board could change the designated representative at any time if needed. However, that action would need to take place during open session. Mr. Gagen noted that any final decision on the proposed terms of the General Manager's employment agreement would also need to take place during open session. Mr. Jon Hansen, resident, suggested that the Board consider designating Director Hawkins and one of the new Board members as the District's representatives. He asked if there would be an added cost should general counsel serve as the District's designated representative. Mr. Gagen provided an overview of services included in the District's retainer and indicated that unless special research was necessary, the costs associated with his potential service as the agency's designated representative would be covered under same. Mrs. Knight noted that comparative compensation information would be provided to the Board. Director Hawkins made a motion, seconded by Director Nederhood, to appoint Mr. Andrew Gagen as the District's designated representative to negotiate an amendment to the present employment agreement with the General Manager. Motion carried 5-0. President Miller declared a recess at 9:33 a.m. The meeting was reconvened at 9:46 a.m. Minutes of the YLWD Board of Directors Regular Meeting Held December 8, 2016 at 8:30 a.m. 6 2016-231 10. DISCUSSION ITEMS 10.1. Overview of the Ralph M. Brown Act and California Public Records Act Mr. Gagen provided an overview of the Ralph M. Brown Act and touched on the following topics: legislative intent of the Act; definition of a meeting; exceptions to meetings; collective briefings; serial meetings; noticing meetings; public participation in meetings; non-agenda items; closed sessions; and remedies for Brown Act violations. During the presentation, Mr. Gagen responded to questions from the Board regarding: Director participation in facility inspection tours, conferences, seminars, other agency meetings, etc.; and responding to public comments. Mrs. Cristy Parker, resident, asked for clarification regarding the term "open and publicized" in relation to community meetings. Mr. Gagen explained that a majority of the Board may attend community meetings that have been publicized and are open to the public. He then responded to questions from the Board regarding the necessity for Directors to declare whether they were representing themselves or the District when participating in community meetings. Mrs. McAllaster provided an overview of the California Public Records Act and touched on the following topics: the purpose of the Act; deadlines for response and disclosure as related to requests for records; receiving and responding to requests; and the use of District versus personal e-mail accounts. She then responded to questions from the Board regarding the number of requests received during the calendar year, the types of records requested, records available on the District's website, the District's records management policy and records retention schedule, and the handling of requests for sensitive records. Mrs. Knight commented on the District's policy for handling DigAlert requests, upcoming staff training on the records management policy, and current litigation related to disclosure of personnel files. Mrs. Cristy Parker, resident, commented on the cost for printing agenda packets, ensuring that materials are legible when printed in black and white, and the District's fees for paper copies of records. Mrs. Knight and Mrs. Lugo commented on the District's costs associated with providing paper copies of records. Minutes of the YLWD Board of Directors Regular Meeting Held December 8, 2016 at 8:30 a.m. 7 2016-232 11. REPORTS, INFORMATION ITEMS, AND COMMENTS 11.1. Directors' Reports Vice President Nederhood commented on a recent notice he'd received from the District regarding roots growing in his sewer line. Mr. DeCriscio provided an overview of the District's sewer line video inspection program and Mr. Marcantonio commented on the issues cause by roots and wipes in the District's sewer lines. Director Hawkins welcomed the new Board members. 11.2. General Manager's Report Mr. Marcantonio asked each of the managers to report on activities within their respective departments. Mr. Micalizzi reported that staff was working on correspondence to SWRCB regarding the draft framework for long-term water conservation measures. Staff is also planning to join a coalition in signing a related letter being drafted by ACWA. Mr. Micalizzi noted that OCWD's Board had adopted a resolution in support of the California WaterFix. Staff is planning to bring a similar item to the Board for consideration at a future meeting. The new Directors' bios have been published on the District's website and their photos will follow shortly. Vice President Nederhood asked about the need for displaying YLWD's conservation target placards in the community and suggested placing a similar visual indicator on the District's home page. Mr. Micalizzi explained that staff was in the process of developing a communications plan dependent on finalization of SWRCB's long-term conservation measures. He then responded to questions from the Board regarding content on the District's website and social media. President Miller declared a recess at 11:00 a.m. The meeting was reconvened at 11:17 a.m. Mr. Conklin reported on the status of various construction projects including the Waterline Replacement Project, Well 21 Project, Richfield Road Water Main Project, Fairmont Booster Station Upgrade Project, and the Well 22 Project. He noted that a public meeting regarding the Esperanza Hills development project was scheduled later that same evening at which a District representative would be present. Mr. Conklin and Mr. Gagen then responded to questions from the Board regarding the Minutes of the YLWD Board of Directors Regular Meeting Held December 8, 2016 at 8:30 a.m. 8 2016-233 developer's cost contribution and the water/sewer related facilities to be constructed. Mr. Marcantonio briefly commented on the terms of the District's agreement with the developer. Vice President Nederhood suggested that more detailed information regarding the Esperanza Hills project be posted on the District's website. Staff then responded to questions from the Board regarding anticipated water demand and the developer's conservation efforts. Mr. DeCriscio stated he would defer his report to the next meeting as he was preparing several items for the Board's consideration. Mrs. Lugo reported that staff was working on calendar year-end tasks, finalizing the RFP for auditing services, and upgrades to the District's financial reporting system. Mr. Vega offered his congratulations to the new Directors and reported on staff's mitigation efforts related to an issue with the District's main phone line and the number of blocked threats during the previous and current month. Mr. Marcantonio stated that in consideration of time, he would e-mail his report to the Board. He then explained that historically, the Board reviewed its compensation rate at the second regular meeting in December each year. He requested direction from the Board as to when they would prefer to consider this matter, either at the next meeting or later in the year. Vice President Nederhood indicated that he wasn't going to be present at the next meeting. Following brief discussion, the Board determined to discuss this matter at the first regular meeting in January. Mr. Marcantonio then welcomed and congratulated the new Board members and stated that he was looking forward to working with them. 11.3. General Counsel's Report Mr. Gagen indicated there was a need for Closed Session. 11.4. Future Agenda Items and Staff Tasks Director Hall requested to add an item on the next agenda to discuss changing the time of regular Board meetings. Minutes of the YLWD Board of Directors Regular Meeting Held December 8,2016 at 8:30 a.m. 9 2016-234 12. COMMITTEE REPORTS 12.1. Interagency Committee with MWDOC and OCWD ■ Next meeting is scheduled January 24, 2017 at 4:00 p.m. 12.2. Joint Agency Committee with City of Yorba Linda ■ Next meeting is yet to be scheduled. 12.3. Interagency Committee with City of Placentia and Golden State Water Company ■ Next meeting is yet to be scheduled. 12.4. Citizens Advisory Committee ■ Next meeting is scheduled January 23, 2017 at 8:30 a.m. President Miller requested that an item be added to the next agenda to discuss the Citizens Advisory Committee. 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from December 9, 2016 — January 31, 2017 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1 CASA Winter Conference — January 18-20, 2017 UWI Spring Conference — February 8-10, 2017 CSDA Leadership Academy Conference — February 26 — March 1, 2017 Mr. Marcantonio noted that Director's participation in the CSDA Leadership Academy would help the District maintain its SDLF Districts of Distinction accreditation. Director Hawkins made a motion, seconded by Director Hall, to approve Director attendance at these events if desired. Motion carried 5-0. Mr. Marcantonio provided an overview of the content presented during the CASA and UWI conferences. Minutes of the YLWD Board of Directors Regular Meeting Held December 8,2016 at 8:30 a.m. 10 2016-235 President Miller reported on his attendance at the ACWA fall conference. Mr. Marcantonio briefly commented on restrictions in Proposition 218 that preclude the District from offering an assistance program for low income customers at this time. Mrs. Lugo indicated that some Districts are able to support these types of programs as they receive a substantial amount of non-operating revenue from other sources whereas YLWD does not. The Board of Directors meeting was adjourned to the Public Financing Corporation meeting at 12:03 p.m. (Minutes of the Public Financing Corporation meeting have been recorded separately.) The Public Financing Corporation meeting was adjourned and the Board of Directors meeting was reconvened at 12:07 p.m. 15. CLOSED SESSION The meeting was adjourned to Closed Session at 12:08 p.m. All Directors in attendance were present. Also present were Messrs. Gagen and Marcantonio. 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: Julie Lonsdale vs. Yorba Linda Water District (OC Superior Court — Case No. 00808246) 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) Mr. Marcantonio left the Closed Session at this time. 15.3. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager Minutes of the YLWD Board of Directors Regular Meeting Held December 8, 2016 at 8:30 a.m. 11 2016-236 15.4. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: Mr. Andrew Gagen, Legal Counsel Unrepresented Employee: General Manager The Board reconvened in Open Session at 12:49 p.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 12:50 p.m. The next Regular Board of Directors Meeting will be held Thursday, December 22, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held December 8,2016 at 8:30 a.m. 12