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HomeMy WebLinkAbout2017-03-28 - Board of Directors Meeting Minutes 2017-063 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, March 28, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 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 ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Beth Haney, Councilmember, City of Yorba Linda Robert Porr, Senior Vice President, Fieldman Rolapp & Associates Cyrus Torabi, Attorney, Stradling Yocca Carlson & Rauth 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports None. 6. PUBLIC COMMENTS None. Minutes of the YLWD Board of Directors Regular Meeting Held March 28,2017 at 6:30 p.m. 1 2017-064 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 22, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.1. Minutes of the Board of Directors Workshop Meeting held January 9, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$1,046,651.81. 7.4. ACWA/JPIA Property Program Renewal Billing Recommendation: That the Board of Directors authorize payment to ACWA/JPIA in the amount of$45,708 for renewal of the District's property insurance coverage for the period April 1, 2017 to April 1, 2018. 7.5. Declaration of Restrictive Covenants with Toll CA III, LLC for Tract 17654 Recommendation: That the Board of Directors authorize the President and Secretary to execute the Declaration of Restrictive Covenants with Toll CA 111, LLC for Tract 17654. 8. ACTION CALENDAR 8.1. Establishing a Joint Powers Authority for the Purpose of Selling Revenue Bonds Ms. Delia Lugo explained that as previously authorized by the Board, staff was working with the financing team to request additional funding for completion of the Fairmont Booster Pump Station Upgrade Project. Traditionally, there are two options for adding additional funding to an advanced refunding opportunity, either the issuance of certificates of participation (COP) or revenue bonds. The financing team has recommended the issuance of revenue bonds as this option will be more appealing to potential investors and produce a lower yield as compared to COPs. Ms. Lugo further explained that although the District currently had Minutes of the YLWD Board of Directors Regular Meeting Held March 28, 2017 at 6:30 p.m. 2 2017-065 an active public financing corporation, this entity could only be utilized for the issuance of COPs. The process by which revenue bonds can be sold will require the establishment of a joint powers authority (JPA) with the California Municipal Financing Authority (CMFA). To establish a JPA, the District will need to submit an application to join CMFA and then establish the JPA via resolution that will approve a joint exercise of powers agreement. The JPA will then issue revenue bonds under an indenture and the District will make payments securing the bonds under an installment agreement between the District and the JPA. This new process will require slight modifications to the preliminary official statement. The expected date for the bonds to go to market was anticipated to occur in May. Ms. Lugo then introduced Mr. Robert Porr and Mr. Cyrus Torabi who were present to provide additional information pertaining to the process. President Miller opened the meeting to public comment on this matter. There being none, Mr. Porr proceeded with the presentation. Mr. Porr explained the differences between revenue bonds and COPs and provided an overview of the total debt service comparison and the benefits of issuing revenue bonds instead of COP's. Mr. Porr then reviewed the costs associated with forming the JPA, the JPA structure, financing timing options, and potential advantages of waiting until July to close the transaction. Mr. Torabi indicated that the Board could determine whether or not to pursue an advanced or current refunding scenario later in the process. He then provided an overview of the required legal documents associated with forming the JPA and the bond issuance process. He also explained the purpose and role of CMFA. Director Hawkins made a motion, seconded by Director Jones, to authorize staff to work with the Financing Team to establish a Joint Powers Authority called the "Yorba Linda Water District Financing Authority" in order to complete the process of issuing Revenue Bonds as part of the advance refunding opportunity. Motion carried 5-0. 8.2. Supporting Association of California Water Agencies Policy Statement on Bay-Delta Flow Requirements Mr. Marc Marcantonio explained that the Association of California Water Agencies (ACWA) Board had adopted a strong policy statement urging the State Water Resources Control Board (SWRCB) to set aside its problematic "unimpaired flow" approach to setting new water quality objectives in the Bay-Delta watershed. ACWA submitted the policy Minutes of the YLWD Board of Directors Regular Meeting Held March 28,2017 at 6:30 p.m. 3 2017-066 statement to SWRCB along with its formal comment letter on the Phase 1 update to the Bay-Delta Water Quality Control Plan. ACWA also requested its member agencies to adopt a resolution in support of its policy statement on Bay-Delta flow requirements. Mr. Terry Harris (resident) commented on his understanding of the purpose of the resolution and inquired as to the benefit for the District. Mr. Marcantonio explained that in his correspondence to ACWA, he'd suggested they encourage SWRCB to establish "minimum" flows rather than "unimpaired" flows in order to avoid ambiguity. The Board then discussed the historical condition of the Bay-Delta and sending a letter directly to SWRCB in addition to or in lieu of adopting the resolution. Director Nederhood made a motion, seconded by Director Jones, to adopt Resolution No. 17-09 in support of the Association of California Water Agencies policy statement on the Bay-Delta flow requirements. Motion carried 5-0 on a Roll Call vote. Mr. Marcantonio offered to draft a separate letter to SWRCB. 9. DISCUSSION ITEMS 9.1. Budget to Actual Statements for the Month Ending February 28, 2017 Mr. Kelly McCann summarized the statements touching on cumulative volumetric water revenue and variable expenses. He then reviewed the expenses for supplies and services in more detail. 9.2. Cash and Investments Report for Period Ending February 28, 2017 Mr. McCann provided an overview contained in the reports related to yields, expenditures, and reserve levels. The Board and staff then discussed handling of the District's investments. 9.3. CA Supreme Court Decision Regarding Application of Public Records Act to Personal Devices Mr. Andrew Gagen provided a presentation regarding the recent Supreme Court ruling and its application to records related to public business held in Director's and employee's personal e-mail accounts or electronic devices. Mr. Gagen explained that exemptions identified in the Public Records Act still applied and the District would need to adopt a policy regarding the Minutes of the YLWD Board of Directors Regular Meeting Held March 28,2017 at 6:30 p.m. 4 2017-067 handling of public business communications on personal devices. He further noted that the Brown Act also applied to communications on personal e-mail accounts or electronic devices. Mr. Gagen then reviewed some unanswered questions in relation to the ruling and advised against using personal e-mail accounts or electronic devices to conduct public business. The Board and staff discussed revisions to existing policies and key points to be addressed. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports None. 10.2. General Manager's Report Mr. Marcantonio reported on MWDOC's draft budget and projected financial impact on retail agencies, local agency efforts to explore energy savings through the use of microgrids and obtain grant funding for emergency generators, participation in MET's coalition letter in opposition of AB 791, 792, and 793, the upcoming MWDOC Policy Forum, and his planned participation in MET's inspection trip of the Hoover Dam. He then asked each of the managers to report on activities within their respective departments. Mr. Steve Conklin reported that OCWD was planning to increase the Replenishment Assessment, the Basin Production Percentage is expected to remain close to the same ratio. He commented on topics discussed during the last interagency committee meeting with MWDOC and OCWD and reported on the status of various construction projects. Mr. John DeCriscio reported on staff's efforts related to weed abatement and defensible space at the District's various facilities. He also explained that Well No. 1 had failed earlier in the month and staff would notify the Board and/or request approval should repair costs exceed the limits described in Section 5 of the District's purchasing policy. Ms. Lugo reported that staff was preparing for the next budget workshop, continuing work on the advance refunding process, and would be seeking bids for preparation of the District's OPEB actuarial valuation report in July. Minutes of the YLWD Board of Directors Regular Meeting Held March 28, 2017 at 6:30 p.m. 5 2017-068 Mr. Art Vega reported on the status of the financial system upgrade. He stated it was scheduled to go live on April 7, 2017. 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) ■ Minutes of the meeting held March 23, 2017 at 4:00 p.m. will be provided when available. ■ Next meeting is yet to be scheduled. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Nederhood) • Minutes of the meeting held March 13, 2017 at 4:00 p.m. will be provided when available. Mr. Marcantonio provided a brief summary of topics discussed during the meeting. ■ Next meeting is scheduled June 12, 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. 11.4. Ad Hoc Citizens Advisory Committee (AHCAC) ■ Minutes of the meeting held March 8, 2017 at 6:00 p.m. were provided in the agenda packet. ■ Minutes of the meeting held March 21, 2017 at 7:00 p.m. will be provided when available. President Miller reported that the Committee had determined to elect a chairperson as well as retain the services of the meeting facilitator. Minutes of the YLWD Board of Directors Regular Meeting Held March 28.2017 at 6:30 p.m. 6 2017-069 Ms. Julia Schultz (resident) commented on Board member participation in AHCAC meetings. ■ Next meeting is scheduled March 30, 2017 at 6:00 p.m. 12. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings. 12.1 MWDOC Board — March 15, 2017 (Nederhood) 12.2 OCWD Board — March 15, 2017 (Jones) 12.3. YL Planning Commission — March 15, 2017 (Hawkins — As Needed) Director Hawkins did not need to attend this meeting. 12.4. OCSD Board — March 22, 2017 (Hawkins/Jones) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from March 29, 2017 — June 30, 2017 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1 MWDSC Spring Green Expo — April 20, 2017 Meet ACWA's President —April 27, 2017 Santa Ana River Watershed Conference — May 25, 2017 Director Hall made a motion, seconded by Director Hawkins, to approve Director attendance at these events if desired. Motion carried 5-0. 15. ADJOURNMENT 15.1. The meeting was adjourned at 8:26 p.m. % Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held March 28, 2017 at&30 p.m. 7