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HomeMy WebLinkAbout2017-04-11 - Board of Directors Meeting Minutes 2017-070 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, April 11, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:33 p.m. 2. PLEDGE OF ALLEGIANCE President Miller led the pledge. 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, Management Analyst Javier Martinez, Water Production Superintendent Kelly McCann, Senior Accountant ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Tom Lindsey, 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 Mr. Marc Marcantonio noted that staff had distributed a revised resolution associated with Item No. 9.1. He then requested that the Board defer consideration of Item No. 7.4. as the claimant was unable to attend the meeting and desires to be present. He also requested to add the following matter to the agenda as there was a need to take immediate action and the need for action came to staff's attention subsequent to the agenda being posted. Minutes of the YLWD Board of Directors Regular Meeting Held April 11,2017 at 6:30 p.m. 1 2017-071 Lifting Stage 1 Water Supply Shortage Recommendation: That the Board of Directors adopt Resolution No. 17-13 Lifting Stage 1 Water Supply Shortage. Director Hawkins made a motion, seconded by Director Jones, to add this matter to the agenda as Item No. 9.3. Motion carried 5-0. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports Councilmember Tom Lindsey reported on upcoming activities related to the City's 50th anniversary celebration, abandonment of landscape easements and the impact on water consumption, and plans to install drought tolerant landscaping in medians throughout the community. 6. PUBLIC COMMENTS None. 7. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Jones, to approve Item Nos. 7.1 through 7.3 on the Consent Calendar. Motion carried 5-0. Director Hall abstained from voting on 7.1. as he was not present for the meeting. 7.1. Minutes of the Board of Directors Regular Meeting held January 12, 2017 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$1,340,373.03. 7.3. Request to File Notice of Completion for the Well No. 21 Wellhead Equipping Project Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for construction of the Well No. 21 Wellhead Equipping Project, Job No. J2009-22. Minutes of the YLWD Board of Directors Regular Meeting Held April 11, 2017 at 6:30 p.m. 2 2017-072 (The following item was removed from the agenda.) 7.4. Claim for Damages Filed by Jeff Hansen Recommendation: That the Board of Directors reject and deny the claim filed by Jeff Hansen. 8. ACTION CALENDAR 8.1. Determination to Join the California Municipal Finance Authority (CMFA) Ms. Delia Lugo explained that it was in the public's interest and benefit to become a member of CMFA in order to facilitate the financing of certain water distribution system improvements within the District's service area. Director Hawkins made a motion, seconded by Director Hall, to adopt Resolution No. 17-10 Approving, Authorizing, and Directing Execution of Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority. Motion carried 5-0 on a Roll Call vote. 8.2. Agreement to Form the Yorba Linda Water District Financing Authority Ms. Lugo explained that following Board authorization, the District had submitted an application to become a member of CMFA which if approved, grants the authority to exercise a joint powers agreement between CMFA and the District to create and establish the Yorba Linda Water District Financing Authority. Director Hawkins made a motion, seconded by Director Jones, to adopt Resolution No. 17-11 Approving, Authorizing and Directing the Execution of Joint Exercise of Powers Agreement By and Between the Yorba Linda Water District and the California Municipal Finance Authority to Form the Yorba Linda Water District Financing Authority. Motion carried 5-0 on a Roll Call vote. Mr. Cyrus Torabi explained that prior to considering the issuance of bonds, President Miller would need to execute the two agreements that were just approved. He noted that CMFA had approved the District's application on April 7, 2017. 8.3. Adjourn to Yorba Linda Water District Financing Authority Meeting The Board of Directors meeting was adjourned to the Financing Authority meeting at 6:49 p.m. President Miller then signed the agreements associated with Item Nos. 8.1. and 8.2. Minutes of the YLWD Board of Directors Regular Meeting Held April 11,2017 at 6:30 p.m. 3 2017-073 (Minutes of the Financing Authority Meeting have been recorded separately.) The Financing Authority meeting was adjourned and the Board of Directors meeting reconvened at 6:59 p.m. 9. ACTION CALENDAR CONTINUED 9.1. Approving Issuance of Revenue Bonds Series 2017A Ms. Lugo explained that Mr. Robert Porr had prepared a presentation for the Board as part of the due diligence process. Mr. Porr provided an overview of the savings associated with the "advance" and "current" refunding scenarios and the results of a sensitivity analysis. Mr. Torabi reviewed the resolution and related legal documents. Ms. Cristy Parker (resident) commented on the resolution and procedures for cancellation of the bond issuance process to which Mr. Porr and Mr. Torabi responded. The Board discussed fluctuations in the market and the impact on District savings. The Board then requested an action item be placed on the next regular meeting agenda to review market conditions and determine whether or not to move forward or delay issuance of the bonds. Ms. Parker (resident) suggested various edits to the Installment Purchase Agreement. Mr. Torabi and staff responded and indicated that some sections had been or will be revised if warranted. Ms. Lugo asked the Board to review the Preliminary Official Statement and submit any questions or comments to staff before the end of the work week. Director Hawkins made a motion, seconded by Director Hall, to adopt Resolution No. 17-12 Approving the Execution and Delivery of an Installment Purchase Agreement (pending edits to be completed by bond counsel) for the Purpose of Causing the Issuance of Approximately $35,000,000 Aggregate Principal Amount of Revenue Bonds, Series 2017A and Approving the Execution and Delivery of Certain Documents in Connection Therewith and Certain Other Matters. Motion carried 5-0 on a Roll Call vote. Minutes of the YLWD Board of Directors Regular Meeting Held April 11, 2017 at 6:30 p.m. 4 2017-074 President Miller declared a recess at 8:26 p.m. The meeting was reconvened at 8:34 p.m. 9.2. Change Order No. 3 for Richfield Road Water Main Project Mr. Steve Conklin explained that the contractor had submitted a change order for an increase of approximately $46K and 24 calendar day extension due to differing site conditions and unknown utilities. Staff will be working with the engineering firm (Stantec) to obtain reimbursement for approximately $16K as the design for the tie-in was defective. Director Hawkins made a motion, seconded by Director Jones, to approve Change Order No. 3 for $45,991.08 and 24 additional calendar days to TBU Construction Inc. for construction of the Richfield Road Water Main Project, Job No. 2014-23. Motion carried 5-0. 9.3. Lifting Stage 1 Water Supply Shortage Mr. Marcantonio explained that Governor Brown ended the emergency drought declaration the week prior. Shortly thereafter, staff began receiving calls as to the status of the District's Stage 1 watering restrictions. Lifting Stage 1 would allow customers to irrigate more than 3 times per week, however, the District's permanent watering restrictions would still remain in effect. Director Hawkins made a motion, seconded by Director Jones, to adopt Resolution No. 17-13 Lifting Stage 1 Water Supply Shortage. Motion carried 5-0 on a Roll Call vote. 10. DISCUSSION ITEMS 10.1. Options for Enhancing Community Relations Mr. Marcantonio explained that the District had tried several different ways to communicate with the public and the preferred method differs. Director Hall commented on the diversity of the Districts constituents, potential need for short term professional assistance with messaging, the complexity of local and statewide water issues, and YLWD's responsibility for educating the public. He suggested that a request for proposal (RFP) for these services be prepared and presented to the Board. Minutes of the YLWD Board of Directors Regular Meeting Held April 11,2017 at 6:30 p.m. 5 2017-075 The Board and staff then discussed conducting town hall meetings electronically, utilizing the City's government access television channel, and options for digital streaming. Director Hall suggested that communication methods and strategy be proposed by the public relations firm should one be engaged. He also commented on his previous experience working with community relations consultants and the importance of tailoring public relations efforts. The Board and staff then discussed the need for community relation efforts, the length of time for potentially engaging a public relations firm, strategic planning and staffing, and surveying customers in regards to preferred method of communication. Director Hall suggested that the Board consider engaging a public relations firm for a period of 3 months to develop a communications strategy for the District for the next few years. Mr. Marcantonio indicated that staff would start drafting the RFP and present it to the Board for consideration at a future meeting. The Board and staff then discussed the timing of the RFP process, start date of the contract, reaching out to other agencies for recommendations, and including funds in the draft FY 2018 budget. Councilmember Tom Lindsey commented on the City's recent public relations efforts and provided suggestions to the Board in regards to this matter. 11. REPORTS, INFORMATION ITEMS, AND COMMENTS 11.1. Directors' Reports None. 11.2. General Manager's Report Mr. Marcantonio reported on meetings and events he'd recently attended. He then asked each of the managers to report on activities within their respective departments. Mr. John DeCriscio reported on the status of a main break and staff's planned participation in various competitions during the CA/NV AWWA conference. Minutes of the YLWD Board of Directors Regular Meeting Held April 11,2017 at 6:30 p.m. 6 2017-076 Ms. Lugo reported that staff was preparing for the next budget workshop and participated in interviews with the rating agencies. She noted that representatives from White Nelson Diehl Evans would be providing a presentation regarding the audit process at a future Board meeting. Mr. Art Vega reported on the status of the District's financial system upgrade. Ms. Botts reported on various aspects of the state's long-term framework for water conservation. She stated that the District's permanent watering restrictions would continue to remain in effect despite the Governor's drought declaration being lifted. Ms. Gina Knight reported on the status of staffing within her department. 11.3. General Counsel's Report None. 11.4. Future Agenda Items and Staff Tasks None. 12. COMMITTEE REPORTS 12.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) ■ Minutes of meeting held March 23, 2017 were included in the agenda packet. ■ Next meeting is schedule May 25, 2017 at 4:00 p.m. 12.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) ■ Minutes of meeting held March 13, 2017 will be provided when available. ■ Next meeting is scheduled June 12, 2017 at 4:00 p.m. at YL City Hall. Minutes of the YLWD Board of Directors Regular Meeting Held April 11, 2017 at&30 p.m. 7 2017-077 12.3. Interagency Committee with City of Placentia and Golden State Water Company (Miller/Nederhood) ■ Next meeting is yet to be scheduled. 12.4. Ad Hoc Citizens Advisory Committee ■ Minutes of meetings held March 21 and March 30, 2017 were included in the agenda packet. Minutes of meeting held April 6, 2017 will be provided when available. ■ Next meeting is scheduled April 13, 2017 at 6:00 p.m. 13. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings and events. 13.1 YL Planning Commission — March 29, 2017 (Hawkins — As Needed) 13.2 ISDOC — March 30, 2017 (Jones/Miller/Nederhood) 13.3. MWDOC Water Policy Forum — March 30, 2017 (Hawkins/Jones/Miller/Nederhood) 13.4. YL City Council — April 4, 2017 (Nederhood) 13.5. MWDOC Board —April 5, 2017 (Nederhood) 13.6. OCSD Operations Committee — April 5, 2017 (Hawkins) 13.7. OCWD — April 5, 2017 (Jones) 13.8. MWDSC Hoover Dam Tour— April 7-9, 2017 (Jones/Nederhood) 13.9. WACO —April 7, 2017 (Miller) 14. BOARD OF DIRECTORS ACTIVITY CALENDAR 14.1. Meetings from April 12, 2017 — June 30, 2017 The Board reviewed the activity calendar and made no changes. Minutes of the YLWD Board of Directors Regular Meeting Held April 11,2017 at 6:30 p.m. 8 2017-078 15. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 15.1. MWDOC Elected Officials' Forum —April 26, 2017 The Board voted 5-0 to approve Director attendance at this event if desired. 16. ADJOURNMENT 16.1. The meeting was adjourned at 9:59 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held April 11,2017 at 6:30 p.m. 9