Loading...
HomeMy WebLinkAbout2017-02-13 - Board of Directors Meeting Minutes (B) 2017-025 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Monday, February 13, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER President Miller called the meeting to order at 6:33 p.m. The following items were taken out of order. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Marc Marcantonio, General Manager Al Nederhood, Vice President Steve Conklin, Engineering Manager Andrew J. Hall, Director John DeCriscio, Operations Manager Phil Hawkins, Director Gina Knight, HR/Risk and Safety Manager Brooke Jones, Director Delia Lugo, Finance Manager Art Vega, Information Technology Manager Annie Alexander, Executive Assistant Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Beth Haney, Councilmember, City of Yorba Linda Robert Porr, Senior Vice President, Fieldman Rolapp & Associates Cyrus Torabi, Attorney, Stradling Yocca Carlson & Rauth 2. PLEDGE OF ALLEGIANCE President Miller led the pledge. 4. ADDITIONS/DELETIONS TO THE AGENDA None. Minutes of the YLWD Board of Directors Regular Meeting Held February 13,2017 at 6:30 p.m. 1 2017-026 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports Director Brett Barbre reported on the Governor's extension of the emergency drought declaration, Metropolitan's water storage efforts, current snow pack, and water supply conditions. He also presented a diagram of the Oroville Dam and reported on its current condition in light of recent flooding. He then responded to related questions from the Board and members of the public. Councilmember Beth Haney reported on the City's landscape transition plan for the Landscape Maintenance Assessment District and the community's response to a recent survey. 6. PUBLIC COMMENTS Dr. Jeff Decker, resident, distributed a handout regarding the District's financials and commented on historical revenue and expenses. 7. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Hall, to approve the Consent Calendar. Motion carried 5-0. 7.1. Minutes of the Board of Directors Regular Meeting held December 8, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$3,557,007.91. 8. ACTION CALENDAR 8.1. Authorizing the Issuance of Revenue Refunding Bonds, Series 2017A Mrs. Delia Lugo explained that the Board had previously requested to explore other financing options and that Mr. Robert Porr and Mr. Cyrus Torabi were in attendance to present this information. Minutes of the YLWD Board of Directors Regular Meeting Held February 13,2017 at&30 p.m. 2 2017-027 Mr. Porr provided an update of municipal market conditions and reviewed various refunding structures for the District's 2008 Certificates of Participation (COP) including revenue and lease revenue bonds, interim debt, variable rate demand obligations, and cash reserves. He also provided an overview of three different refunding structures and associated net present value savings, rating agency concerns, sensitivity analysis of delaying the transaction until July, and financing timing options. Mr. Porr and staff then responded to questions from the Board regarding increasing the bond issuance amount to fund future capital improvement projects rather than utilizing reserves. Mr. Torabi stated that should the Board determine to add a new financing component, the resolution and associated bond documents would need to be modified and presented to the Board at a future meeting. Dr. Jeff Decker, resident, commented on the District's water rates, financials and reserves, and providing a customers with a refund. Mr. Ben Parker, resident, commented on his personal work experience with rating agencies, interest rates associated with short-term versus long- term debt, and various financing options. Mr. Greg Schultz, resident, commented on external factors that could impact the District's financial stability and his concerns with refunding administrative penalty revenue. Mrs. Julia Schultz, resident, commented on the District's water rates. Mrs. Cristy Parker, resident, commented on and suggested edits to various sections of the Preliminary Official Statement (POS). Mrs. Susan Decker, resident, commented on information contained in the handout previously distributed by Dr. Decker. Mr. Tom Lynch, resident, commented on the timing of the bond refunding in relation to adoption of the FY 2017/18 budget and Proposition 218 requirements. The Board further discussed the bond refunding structures and alternate financing options. Mr. Torabi indicated that the bond documents being presented were considered to be in "substantial form" and that any blanks would be completed at the time of pricing. He also noted that the Board would have an opportunity to review the final draft of the Official Statement and that if Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 3 2017-028 the District's savings did not meet the thresholds identified in the resolution, the General Manager would not be authorized to execute the Purchase Contract. Mr. Porr explained the relationship between bond pricing and yields. The Board then discussed short and long term financing options, the bond refunding structures presented during the meeting, and the possibility of refunding the 2008 COP's and issuing additional bonds for the purpose of financing future capital improvement projects. Mr. Torabi explained that if the Board desired to restructure the refunding opportunity, separate documents would need to be drawn up for the additional bonds or the existing bond documents would need to be revised and brought back at a future meeting. Mrs. Lugo read staff's recommendation regarding this matter. In response to a question from Mrs. Parker (resident), Mr. Torabi explained that should the Board approve execution of the bond documents as presented in substantial form, this action would not preclude making minor edits such as those discussed during the meeting. The final draft of the Official Statement could be provided to the Board for review prior to going to market. Mr. Porr noted that material changes to the pro forma in the POS would need to be brought back to the Board for formal approval. Director Hawkins made a motion to adopt Resolution No. 17-02, authorizing the issuance of not to exceed $28,000,000 Refunding Revenue Bonds, Series 2017A, approving the execution of certain documents (pending edits to be completed by bond counsel) in connection therewith and certain other matters, and rescinding Resolution No. 16-17. Mrs. Lugo commented on disclosure requirements in relation to reserves and rates. Dr. Decker commented on rate increases, potential litigation, refunds for customers, and the POS. Directors Nederhood and Miller commented on the previous rate study, Proposition 218 hearing, and the POS. Minutes of the YLWD Board of Directors Regular Meeting Held February 13,2017 at 6:30 p.m. 4 2017-029 President Miller repeated Director Hawkins' motion to accept staff's recommendation, including the edits to the POS as discussed during the meeting, and suggested a dollar amount for the bond issuance. Director Hall stated that a dollar amount need not be specified and could be determined later after which he seconded the motion. Motion carried 5-0 on a Roll Call vote. 8.2. Revised Budgeted Positions for the Remainder of FY 2016/2017 Mrs. Gina Knight provided a historical overview of the previous Assistant General Manager (AGM) position and the legal requirements for pay schedules. She explained that staff was recommending the Board consider adding the AGM position to the District's budgeted positions for the purposes of succession planning. The vacant Communications Manager position could remain unfilled to help fund the AGM position through FY 2017/18. Mrs. Knight then described the duties to be assigned to the AGM and the estimated fiscal impact. Dr. Decker (resident) commented on comparative salaries for the public information officers and spoke against taking the proposed action at this time. Ms. Claudia Lynch, resident, commented on the recent election, proposed salary for the AGM, and reducing the District's expenses. The Board discussed the positions of AGM and Communications Manager. President Miller suggested that consideration of this matter be deferred to a future meeting. Mrs. Parker (resident) commented on expenses incurred for filling the position of Communications Manager. President Miller stated that the Board had asked Mr. Marcantonio to defer further recruitment efforts for this position at this time. Director Hall asked for clarification as to what discussion and/or action was being deferred. President Miller indicated that discussion and potential action related to both positions, AGM and Communications Manager, would be deferred in order to allow time for review of the organizational performance study conducted by Koff & Associates. Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 5 2017-030 8.3. Ballot for Proposed Increased Assessment Affecting District Properties Located in Local Landscaping Zone L-2N of the City of Yorba Linda Street Lighting and Landscaping Maintenance District (LMAD) Mr. Marcantonio explained that the District had recently received a ballot for a proposed increased assessment affecting one parcel located in Zone L-2N of the LMAD. The proposed annual assessment amount is $235.64. Vice President Nederhood commented on the benefits of Director attendance at City Council meetings. Director Nederhood made a motion, seconded by Director Hawkins, to vote in favor of the increased assessment for the parcel and authorize the General Manager to complete and submit the ballot as required. Motion carried 5-0. 9. DISCUSSION ITEMS 9.1. Status of Recruitment Process for Ad Hoc Citizens Advisory Committee (AHCAC) Mrs. Malissa Muttaraid reported she had received 16 applications for service on the AHCAC committee. She then provided an overview of the previous interview process and requested feedback from the Board in regards to the current recruitment. The Board discussed scheduling a special Board meeting in order to create an ad hoc committee to assist with the candidate selection process for the AHCAC. Ms. Lynch (resident) spoke against creation of an ad hoc committee as mentioned above and the importance of transparency. Mrs. Lugo reported on staff's efforts to obtain proposals for meeting facilitation services for the AHCAC. Vice President Nederhood suggested that staff obtain 2-3 proposals for the Board's consideration. Staff will work with the Board to schedule a special meeting for the purposes of determining the application review and candidate selection processes. 9.2. Rescheduling Regular Board Meeting on Wednesday, March 1, 2017 and Confirming Availability for Board Workshop Meeting on Thursday, March 16, 2017 The Board determined not to reschedule the Board meeting on March 1, 2017 and reschedule the Board workshop meeting to Tuesday, March 21, 2017 at 4:00 p.m. Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 6 2017-031 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports The Directors reported on their attendance at the following events: ■ OCWD Field Headquarters Tour — January 26, 2017 (Nederhood/Jones) ■ OCWD GWRS Tour— February 1, 2017 (Nederhood/Jones) ■ MWDSC Local Infrastructure Tour — February 3, 2017 (Hall/Miller) 10.2. General Manager's Report Mr. Marcantonio asked each of the managers (or their designee) to report on activities within their respective departments. He then commented on the recent extension of the Governor's emergency drought declaration, his attendance at various events, and the importance of flushing sediment from the water distribution system. 10.3. General Counsel's Report None. 10.4. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) ■ Next meeting is scheduled March 23, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) ■ Next meeting is scheduled March 13, 2017 at 4:00 p.m. at YL City Hall. 11.3. Interagency Committee with City of Placentia and Golden State Water Company (Miller/Nederhood) ■ Next meeting is yet to be scheduled. Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 7 2017-032 12. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings. 12.1 OCSD Board — January 25, 2017 (Jones) 12.2 ISDOC — January 26, 2017 (Miller/Jones) 12.3. MWDOC Board — February 1, 2017 (Nederhood) 12.4. OCSD Operations Committee — February 1, 2017 (Hawkins) 12.5. OCWD Board — February 1, 2017 (Jones) 12.6. WACO — February 3, 2017 (Hawkins/Jones/Nederhood) 12.7. YL City Council — February 7, 2017 (Hall) 12.8. LAFCO — February 8, 2017 (Nederhood —As Needed) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from February 14, 2017 —April 30, 2017 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. MWDOC Water Policy Forum — March 30, 2017 Director Hawkins made a motion, seconded by Director Hall, to approve Director attendance at this event if desired. Motion carried 5-0. 15. ADJOURNMENT 15.1. The meeting was adjourned at 10:13 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held February 13,2017 at 6:30 p.m. 8