HomeMy WebLinkAbout2017-03-21 - Board of Directors Meeting Minutes 2017-059
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS WORKSHOP MEETING
Tuesday, March 21, 2017, 4:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 4:02 p.m.
2. PLEDGE OF ALLEGIANCE
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
Cindy Botts, Water Cons Supv/Mgmt Analyst
Kelly McCann, Senior Accountant
Melissa Muttaraid, Public Affairs Representative
ALSO PRESENT
Andrew Gagen, Partner, Kidman Law LLP
4. PUBLIC COMMENTS
None.
5. DISCUSSION ITEMS
5.1. 5-Year Capital Improvement Plan (CIP)
Mr. Steve Conklin provided an overview of the following elements of the
District's CIP: construction projects to increase water capacity, capability
and reliability; projects to repair and replace (R&R) existing capital
facilities; and vehicles and capital equipment. He also summarized major
topics contained in the District's Asset Inventory and Risk Assessment (or
Asset Management Plan (AMP)) conducted in 2010 including: the number
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and type of aboveground facilities; the length and time period of water and
sewer main line installations; and the formula used to determine R&R
priorities. He then reviewed the estimated system replacement costs for
the District's above and belowground assets, recommended R&R funding
scenarios, completed R&R projects through from 2009-2016, and the
remaining useful life of YLWD's water and sewer pipelines. Mr. Conklin
then provided an overview of projects and capital outlay identified in the
District's 5-year CIP.
The Board and staff discussed the methods for calculating risk ratings, the
process for vehicle and capital equipment replacement, status of the
District's CMMS and GIS systems, estimated timeline and cost for
updating the AMP, condition of the sewer lift station in Hidden Hills, need
for an additional well, future pipeline projects, and the benefits of
automatic meter reading.
The Board and staff then discussed the accuracy of facility lifespan
calculations contained in the AMP, incorporation of AMP
recommendations into the 5-year CIP, the District's urban water
management and water/sewer master plans, funding for upcoming CIP,
issues with sewer lines transferred from the City, the purpose of a few
projects identified in the CIP, future developer contributions, and utilizing
bond funding for construction of the Fairmont Booster Pump Station
(FBPS) Upgrade Project.
Mr. Ben Parker (resident) commented on efficiencies gained from cost and
equipment sharing with other governmental agencies.
Mr. Marc Marcantonio noted that staff actively collaborated with other
agencies to take advantage of such opportunities. Ms. Delia Lugo stated
that an agreement was in place with the City of Placentia for sewer billing
services.
Ms. Susan Decker (resident) suggested the District consider establishing
a purchasing department rather than hiring an Assistant General Manager.
Mr. Marcantonio shared his future plans for handling the District's
procurement activities.
5.2. Annual Review of Financial Reserves Policy
Ms. Lugo provided an overview of the purpose of reserves, reserve fund
types, target levels, and the role of credit rating agencies. She then
reviewed current and recommended target levels for the District's
unrestricted and restricted reserves, rating agency requirements for days
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of cash, and current and recommended days of cash for water and sewer
unrestricted reserve balances.
The Board and staff discussed funding recommended target levels
incrementally, rating agency concerns in regards to forecasting and
conformance to adopted financial policies, restrictions on combining
certain reserve types, establishing a rate stabilization reserve fund, and
utilizing the District's financial model to explore reserve levels.
Mr. Kent Ebinger (resident) commented on utilizing bonds to fund
construction of major projects rather than reserves.
Ms. Lugo clarified that in addition to refunding the 2008 Certificates of
Participation, the District planned to issue new bonds to help fund
construction of the FBPS.
The Board and staff then discussed the importance of funding for future
R&R, nationwide shortfalls in replacing critical infrastructure, the AMP's
projected lifespan of District reservoirs, and further analysis of CIP
activities against data contained in the AMP.
6. ADJOURNMENT
6.1. The meeting was adjourned at 6:09 p.m.
Annie Alexander
Assistant Board Secretary
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