Loading...
HomeMy WebLinkAbout2017-07-11 - Board of Directors Meeting Minutes 2017-136 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, July 11, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:30 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Steve Conklin, Engineering Manager Al Nederhood, Vice President John DeCriscio, Operations Manager Andrew J. Hall, Director Gina Knight, HR/Risk and Safety Manager Phil Hawkins, Director Delia Lugo, Finance Manager Brooke Jones, Director Art Vega, Information Technology Manager Annie Alexander, Executive Assistant Cindy Botts, Management Analyst Kelly McCann, Senior Accountant Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Art Kidman, Partner, Kidman Law LLP Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Tom Lindsey, Councilmember, City of Yorba Linda Andy Sells, Chief Executive Officer, ACWA/JPIA 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports Councilmember Tom Lindsey reported on the results of multiple Proposition 218 hearings for zones within the City of Yorba Linda's Landscape Maintenance Assessment District, the expected reduction in Minutes of the YLWD Board of Directors Regular Meeting Held July 11, 2017 at&30 p.m. 1 2017-137 water consumption, and data contained in the County's most recent assessment roll. Director Brett Barbre reported on MWDSC's water storage efforts, status of water storage related legislation, and the successful conclusion of pending litigation. 5.2. Overview of Services Provided by ACWA/JPIA Andy Sells, CEO for ACWA/JPIA, provided an overview of the association's governance structure. He also reviewed ACWA/JPIA's liability, property, workers compensation, and employee health insurance programs as well as the association's specialized services such as training and development. He then summarized staff's accomplishments related to training, the association's retroactive premium adjustments, and the requirements for and benefits provided by agency membership. 5.3. Overview of County Water Districts Art Kidman, General Counsel for YLWD, provided an overview of county water districts. This included defining types of special districts; forms of local government and water suppliers; specific powers, purposes and differences; property taxes; and water rights. He also reviewed the OCWD Act, benefits afforded by annexation into OCWD, and pending litigation between IRWD and OCWD to which the District is a party. Operations Manager DeCriscio provided a brief explanation of OCWD's Conjunctive Use Program, Basin Production Percentage, and Basin Equity Assessment. He also clarified the differences between and percentages of the District's two water sources. 6. PUBLIC COMMENTS Kay Dotson (resident) spoke against the continuance of joint District and City Council committees and Director attendance at City Council meetings. She also commented on a discussion which took place during a recent Yorba Linda City Council meeting, thanked the Board and staff for the work, and suggested a forensic audit be conducted. Mark Schock (resident) commended Operations Manager DeCriscio and his staff for their work and spoke against the implementation of a budget based rate structure. He also commented on the timing for transcription of the meeting minutes and suggested video recordings of the meetings be aired on the local public access television channel. Minutes of the YLWD Board of Directors Regular Meeting Held July 11, 2017 at 6:30 p.m. 2 2017-138 Engineering Manager Conklin noted that this was Management Analyst Botts' last meeting as she was moving out of state. The Board thanked Ms. Botts for her exemplary service to the District. Julia Schultz (resident) commented on some misconceptions she had observed in the community. She also recommended a piece of literature. Greg Schultz (resident) commented on the impact of the Governor's previous emergency drought declaration and the community's water conservation efforts. He also remarked on the state's lack of appropriate water storage and pending legislation. Jon Hansen (resident) commented on the District's historical revenues and expenses and the General Manager's employment contract. 7. CONSENT CALENDAR Director Hawkins requested to remove Item No. 7.3 from the Consent Calendar. Director Hall made a motion, seconded by Director Jones, to approve the remainder of the Consent Calendar. Motion carried 5-0. 7.1. Minutes of the Board of Directors Regular Meeting Held April 25, 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$461,487.91. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 7.3. Terms and Conditions for Water and Sewer Service with Shea Homes for Tract 18061 The Board and staff briefly discussed the possibility of having the developer install smart meters rather than radio read meters. Engineering Manager Conklin was tasked with looking into the matter. Director Hawkins made a motion, seconded by Director Jones, to approve the Terms and Conditions for Water and Sewer Service with Shea Homes for Tract 18061, Job No. 201719. Motion carried 5-0. Minutes of the YLWD Board of Directors Regular Meeting Held July 11,2017 at 6:30 p.m. 3 2017-139 Trevor Dodson, Principal/Senior Project Manager for Fuscoe Engineering, described the location of the project. 8. ACTION CALENDAR HR/Risk and Safety Manager Knight briefly explained the purpose of Item Nos. 8.1. and 8.2., and noted that neither one had any fiscal impact. 8.1. Revised Budgeted Positions for the Remainder of Fiscal Year 2018 HR/Risk and Safety Manager Knight explained that staff previously presented a proposal to the District's Employees Association which included the revision of specific represented job descriptions and titles. The Association recently approved these changes which now requires a revision to the budgeted positions for the remainder of FY18 in order to comply with CalPERS regulations. She reiterated that these revisions would have no fiscal impact. Director Hawkins made a motion, seconded by Director Hall, to adopt Resolution No. 17-21 Approving the Revised Budgeted Positions for the Remainder of Fiscal Year 2018 and Rescinding Resolution No. 17-15. Motion carried 5-0 on a Roll Call vote. 8.2. Clarifying Employee Classifications, Salary Ranges, and Pay Ranges HR/Risk and Safety Manager Knight explained that in anticipation of Board approving Item No. 8.1 ., staff updated Exhibit A of the Bargaining Unit Employees Association Classifications and Salary Ranges to revise the impacted positions. Staff also updated Exhibit B of the Professional and Confidential Employees Classifications and Salary Ranges and Exhibits B and E of the Management Employees Classifications and Salary Ranges to reflect the reclassification and replacement of certain positions previously approved by the Board in November 2016 and May 2017. Additionally, staff has generated a Classification and Salary Range for the position of General Manager in order to comply with CalPERS regulations. She again reiterated that these revisions would have no fiscal impact. Jeff Decker (resident) commented on establishing goals and objectives for the position of Assistant General Manager. Kent Ebinger (resident) commented on the District's historical and budgeted revenues and expenses. Minutes of the YLWD Board of Directors Regular Meeting Held July 11, 2017 at 6:30 p.m. 4 2017-140 The Board voted 5-0 on a Roll Call to adopt Resolution No. 17-22 approving the modification of certain Classifications and Salary Ranges agreed upon between the District and Employees of the Yorba Linda Water District Employees Association for the remainder of Fiscal Years 2015-2018 and amending Resolution No. 15-06. The Board voted 5-0 on a Roll Call to adopt Resolution No. 17-23 approving the modification of certain Classifications and Salary Ranges for Professional and Confidential Employees for the remainder of Fiscal Years 2015-2018 and amending Resolution No. 15-07. Director Jones made a motion, seconded by Director Hawkins, to adopt Resolution No. 17-24 approving the modification of certain Classifications and Salary Ranges, and Pay Plan for Management Employees for the remainder of Fiscal Years 2015-2018 and amending Resolution No. 15- 08. Motion carried 5-0 on a Roll Call vote. Director Jones made a motion, seconded by Director Hawkins, to adopt Resolution No. 17-25 approving the Classification and Salary for the General Manager effective July 11, 2017. Motion carried 5-0 on a Roll Call vote. 9. DISCUSSION ITEMS 9.1. Budget to Actual Statements for Month Ending May 31, 2017 Finance Manager Lugo reviewed key information contained in the consolidated statement and indicated there was an increase in cumulative volumetric water revenue and total variable costs due to warmer weather and increased customer consumption. Jeff Decker (resident) commented on the YTD budgeted versus actual net position before capital contributions as identified in the consolidated statement. Management Analyst Botts reviewed the ProForma water statement and touched on total revenue and expenses, debt service principal and interest, committed capital expenditures, remaining funds available for transfer to reserves, and the debt service coverage ratio. Board discussion followed regarding reserves, unfunded accrued liabilities, capital expenditures, potential customer refund, and anticipated developer contributions. Staff was instructed to equal among active meters for conservation purposes Minutes of the YLWD Board of Directors Regular Meeting Held July 11, 2017 at&30 p.m. 5 2017-141 9.2. Cash and Investment Report for Period Ending May 31, 2017 Finance Manager Lugo summarized the fiscal impact of the advance refunding of the 2008 Certificates of Participation and issuance of the Revenue Bonds, Series 2017A. She noted that the funds being held at US Bank could only be used for construction of the Fairmont Booster Pump Station. 9.3. Budget Process for Fiscal Year 2018 and Potential Modifications for Fiscal Year 2019 Discussion of this item was deferred to the next regular meeting. 9.4. District Unfunded Accrued Liabilities Finance Manager Lugo explained that as reported in the District's financial statements, YLWD had the following unfunded accrued liabilities: employee pension; other post-employment benefits (OPEB); and compensated balances (vacation/sick leave). She then reported each liability category's approximate total and percentage funded. She also provided an overview of various strategies which may help mitigate the District's risk exposure. The Board and staff briefly discussed putting together a plan for funding these liabilities and other agencies strategies for addressing this issue. Jon Hansen (resident) suggested the District convert to a 401 K for new hires. Jeff Decker (resident) commented on the potential impact on recruitment should the District convert to a 401 K. Director Brett Barbre stated that CalPERS would not allow a hybrid retirement system and that the total liability would have to be paid in order to cancel the contract. He then shared some of MWDSC's strategies for addressing this issue and commented on future financial reporting requirements. Councilmember Tom Lindsey suggested that the District's and City of Yorba Linda's Finance Manager's meet to discuss the City of Yorba Linda's recent actions to help mitigate this issue. Kent Ebinger (resident) spoke in favor of a issuing a refund and using it as an opportunity to educate customers regarding the District's unfunded liabilities. Minutes of the YLWD Board of Directors Regular Meeting Held July 11,2017 at 6:30 p.m. 6 2017-142 9.5. District Unfunded Long-term Projects Discussion of this item was deferred to the next regular meeting. 9.6. Disposition and Potential Refund of Administrative Penalties Finance Manager Lugo explained that the projected administrative penalty fund balance as of June 30, 2017 would be $1.2M. She noted that staff was working on a pending rebate for the Placentia-Yorba Linda Unified School District and inputting journal entries for YLWD's leak detection program activities through April 2017. General Counsel Gagen briefly summarized the potential uses for the remaining funds. Jon Hansen (resident) spoke in favor of refunding the remaining administrative penalty funds in an equal amount to all District customers. Kay Dotson (resident) commented on the City of Yorba Linda's expenses for irrigation in various Landscape Maintenance Assessment District zones. She also spoke in favor of refunding the remaining administrative penalty funds in an equal amount to all District customers. Terry Harris (resident) commented on the Ad Hoc Citizens Advisory Committee's (AHCAC) recommendation to use the remaining administrative penalty funds to develop and support a water efficiency program for the District. Jeff Decker (resident) suggested that a poll be placed on the District's website to receive customer input on the use of the administrative penalty funds. He also suggested that the District issue a $50 refund to each household. Kent Ebinger (resident) commented on the amount of administrative penalties paid by the City of Yorba Linda. Jeff Decker (resident) spoke against issuing a refund to the City of Yorba Linda. Greg Shultz (resident) commented on the loss of his landscape due to the conservation mandate. He also spoke against issuing a refund to customers who paid administrative penalties and in favor of using the remaining funds to enhance the District's water efficiency and education efforts. Minutes of the YLWD Board of Directors Regular Meeting Held July 11,2017 at 6:30 p.m. 7 2017-143 Julia Schultz (resident) commented on the cost of restoring her landscape which was lost due to the conservation mandate. Councilmember Tom Lindsey commented on the administrative penalties paid by the City of Yorba Linda and the potential refund. Director Brett Barbre spoke in favor of refunding the administrative penalties and commented on the challenge of determining the method for execution. An unknown resident commented on the loss of her landscape due to the conservation mandate. She also spoke in favor of issuing a refund to the City of Yorba should the Board decide to refund the remaining administrative penalties. Board discussion followed regarding the options and methods for utilizing or refunding the remaining administrative penalty funds. Finance Manager Lugo explained that the most efficient process for issuing a refund would be to apply a credit to each customer's bill. She also explained that issuing a refund may impact the District's debt service coverage ratio. Staff was instructed to put together a plan for issuing a refund of the remaining administrative penalties in an equal amount as a credit to each active customer connection for water service. Staff was also tasked with developing a list of suggested water-saving devices for which customers can consider utilizing the credit. Julia Schultz (resident) spoke against the issuance of a refund and in favor of utilizing the remaining funds to support a water efficiency education program. 9.7. Disposition and Potential Refund for Fiscal Year 2017 Net Income Terry Harris (resident) commented on the AHCAC's recommendation to issue a refund following reconciliation of the year end financials. He also commented on the District's current rate structure and reserve levels. Jeff Decker (resident) commented on the unaudited water financial statements for FY16 and handouts he had prepared and distributed to the Board. He also commented on the conservation mandate, previous rate increase, and the 2015 rate study. Kay Dotson (resident) commented on the conservation mandate and the importance of planning for future drought conditions. Minutes of the YLWD Board of Directors Regular Meeting Held July 11, 2017 at 630 p.m. 8 2017-144 Julia Schultz (resident) commented on the District's unfunded liabilities and spoke against the issuance of an annual refund. Jon Hansen (resident) spoke in favor of utilizing the District's annual net income to issue a refund and contribute towards the District's unfunded liabilities. Greg Schultz (resident) commented on the challenges associated with the budgeting process and the benefits of utilizing the District's annual net income for maintenance of the distribution system and paying down accrued liabilities. Kent Ebinger (resident) spoke in favor of a issuing a refund and using it as an opportunity to educate customers regarding the District's unfunded liabilities and the need for maintaining the distribution system. The Board discussed the need for establishing funding priorities, setting reserve targets, and determining what conditions would quantify the issuance of a refund. The Board also discussed the District's unfunded accrued liabilities, unfunded long-term projects, the need for updating the Asset Management Plan, the 2015 rate study, the potential for increased regulation associated with the state's long-term framework for conservation, and YLWD's capital improvement plan. Jeff Decker (resident) commented on balancing the issuance of a refund with the District's maintenance and funding priorities. Director Brett Barbre commented on MWDSC's management of annual net income to fund reserves and accrued liabilities. The Board then directed staff to bring this item back at a future meeting for discussion following completion of the FY17 audited financial statements. 9.8. Request for Proposals for Contractual Services Discussion of this item was deferred to the next regular meeting. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports None. Minutes of the YLWD Board of Directors Regular Meeting Held July 11, 2017 at 6:30 p.m. 9 2017-145 10.2. General Manager's Report None. 10.3. General Counsel's Report None. 10.4. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) ■ Minutes of the meeting held June 12, 2017 at 4:00 p.m. will be provided when available. ■ Next meeting is scheduled September 18, 2017 at 4:00 p.m. at YL City Hall. 11.2. Joint Agency Committee with City of Placentia (Miller/Nederhood) ■ Next meeting yet to be scheduled. 11.3. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) ■ Next meeting is scheduled July 27, 2017 at 4:00 p.m. 12. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings. 12.1 OCSD Board — June 28, 2017 (Hawkins/Jones) 12.2 YL Planning Commission — June 28, 2017 (Hawkins — As Needed) 12.3. Symposium on Statewide Conservation — June 29, 2017 (Jones) 12.4. ISDOC — June 29, 2017 (Hawkins/Nederhood) Minutes of the YLWD Board of Directors Regular Meeting Held July 11, 2017 at 630 p.m. 10 2017-146 12.5. MWDOC — July 5, 2017 (Nederhood) 12.6. OCSD Operations Committee — July 5, 2017 (Hawkins) 12.7. OCWD Board — July 5, 2017 (Jones) 12.8. WACO — July 7, 2017 (Hawkins/Miller/Nederhood) Director Nederhood made a motion, seconded by Director Hawkins, to adjourn the meeting. No vote was taken. 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from July 12 — September 30, 2017 Director Hawkins made a motion, seconded by Director Nederhood, to approve the Board of Directors activity calendar as presented. Motion carried 5-0. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. MWDOC Water Policy Forum — August 30, 2017 CSDA Annual Conference — September 25-28, 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 11:24 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held July 11,2017 at 6:30 p.m. 11