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HomeMy WebLinkAbout2017-05-23 - Board of Directors Meeting Minutes (A) 2017-099 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, May 23, 2017, 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER President Miller called the meeting to order at 4:00 p.m. 2. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Marc Marcantonio, General Manager Al Nederhood, Vice President Steve Conklin, Engineering Manager Phil Hawkins, Director John DeCriscio, Operations Manager Brooke Jones, Director Gina Knight, HR/Risk and Safety Manager Delia Lugo, Finance Manager DIRECTORS ABSENT Art Vega, Information Technology Manager Andrew J. Hall Director Annie Alexander, Executive Assistant Cindy Botts, Management Analyst Kelly McCann, Senior Accountant Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP 3. PUBLIC COMMENTS None. 4. DISCUSSION ITEMS 4.1. Budget for 5-Year Capital Improvement Plan, Supplies and Services, and Salaries and Benefits for Fiscal Year 2018 Ms. Cindy Botts noted that a few of the slides included in the agenda packet had been revised. Minutes of the YLWD Board of Directors Workshop Meeting Held May 23,2017 at 4:00 p.m. 1 2017-100 Mr. Steve Conklin explained that the District's capital related expenses fell into three categories: capital improvement projects (CIP), replacement and refurbishment projects (R&R), and capital outlay. Staff is not proposing additional funding for CIP in FY18 although funds have been included in draft budget for Supplies and Services to update the District's Asset Management Plan (AMP). Mr. Conklin then provided an overview of historical and projected capital related expenditures. He noted that as of May 2017, the District had approximately $13.8M available in water capital reserves as of May 2017. He then reviewed the detailed budget for water capital projects and R&R, including staff's proposed adjustments for FY18. Discussion followed regarding the Susana, Bryant & John Bixby Pipeline Replacement Project and related public outreach efforts, cost estimates and timing of the listed R&R projects, and utilization of in-house staff versus consultants for project design. Mr. Conklin stated that funding for R&R would be depleted by FY21 and updating the AMP would provide the District with a roadmap for future projects. He also indicated that available water capital reserves were estimated to total $11.8M at the end of FY17 and $9.2M at the end of FY18. Ms. Botts clarified that funds from the 2017A revenue bonds could only be used for the Fairmont Booster Pump Station Upgrade Project (FBPS). Ms. Lugo briefly explained the process for funding reserves and stated that the Board would have the opportunity to discuss the reserves policy at a future workshop. She also suggested the District begin drawing funds from the 2017A revenue bonds in order to utilize the full amount for the FBPS project and avoid potential penalties. Ms. Botts noted that the projected available water capital reserve balances did not include possible annual reserve transfers from the Operating Fund. The Board did not request any modifications to the proposed budget for capital related expenses. Ms. Lugo explained that staff would be utilizing this information to update the District's financial model. Ms. Botts provided an overview of the draft Supplies and Services budget and noted that the total increase from the FY17 forecast to the draft FY18 budget was approximately $485K or 11%. She then provided additional detail for specific categories with increases or decreases greater than 5%. The Board and staff discussed estimated costs for: updating the District's website; newsletter publications, on-hold music/messaging services; customer water usage analytics; water quality testing for schools; liability and property insurance coverage; notebooks for field personnel access to CMMS; updating the AMP; conducting an employee compensation survey; labor counsel services; public affairs and CMMS consultant services; Minutes of the YLWD Board of Directors Workshop Meeting Held May 23,2017 at 4:00 p.m. 2 2017-101 employee professional development and conference attendance; and uncollectible accounts. Ms. Botts then compared the Supplies and Services budgets for FY14 to FY18, including variances in specific categories over $50K. Staff explained the reasons for transferring SCADA/IT communications costs to the utilities category. Ms. Knight provided an overview of forecasted and budgeted personnel related costs for FY17 and FY18. Ms. Botts noted that this information had been revised to account for unfilled positions. The Board and staff then discussed forecasted and budgeted costs for: overtime; cost-of-living adjustments; merit increases; retiree benefits; and unemployment insurance. Ms. Knight reviewed costs associated with new positions included in the FY18 budget and those that were unfilled during a portion or all of FY17. She also reviewed budgeted and forecasted overtime costs during FY17 and the portion being covered by administrative penalties. Ms. Knight then explained the rates for standby pay. Ms. Botts noted that while the total number of budgeted overtime hours for FY18 was 15 more than FY17, staff was projecting a reduction in total overtime costs for FY18 due to improved staffing levels. The Board and staff discussed customers' heightened awareness of water waste due to the drought and its impact on staff's workload and separating overtime costs for administrative work from emergency/afterhours call-outs. 5. ADJOURNMENT 5.1. The meeting was adjourned at 6:20 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Workshop Meeting Held May 23,2017 at 4:00 p.m. 3