Loading...
HomeMy WebLinkAbout2017-07-25 - Board of Directors Meeting Minutes 2017-147 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, July 25, 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 Marc Marcantonio, General Manager Al Nederhood, Vice President Steve Conklin, Engineering Manager Andrew J. Hall, Director John DeCriscio, Operations Manager Phil Hawkins, Director Delia Lugo, Finance Manager Brooke Jones, Director Annie Alexander, Executive Assistant Vivian Lim, Human Resources Analyst Kelly McCann, Senior Accountant Rick Walkemeyer, IS Administrator ALSO PRESENT Art Kidman, Partner, Kidman Law LLP (Departed at 7:15 p.m.) Andrew Gagen, Partner, Kidman Law LLP (Arrived at 7:15 p.m.) Brett Barbre, Director, MWDSC and MWDOC Beth Haney, Councilmember, City of Yorba Linda 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports Director Brett Barbre reported on topics discussed during a MWDSC meeting he'd attended earlier in the day and commented on the financial impact of the California WaterFix. Minutes of the YLWD Board of Directors Regular Meeting Held July 25, 2017 at 6:30 p.m. 1 2017-148 6. PUBLIC COMMENTS Mr. Dave Ramocinski (resident) commented on the City of Anaheim's water rates as compared to the District's. Staff was tasked with providing a report regarding this matter at a future Board meeting. 7. CONSENT CALENDAR Director Hall stated that he would need to abstain from voting on Item Nos. 7.2. and 7.3. as he wasn't present at the meeting. Director Jones requested to remove Item No. 7.5. from the Consent Calendar for separate discussion. Vice President Nederhood stated that he had questions related to Item No. 7.4. Director Hawkins made a motion, seconded by Director Jones, to approve Item Nos. 7.1., 7.2., and 7.3. on the Consent Calendar. Motion carried 5-0 with Director Hall abstaining from voting on Item Nos. 7.2. and 7.3. 7.1. Minutes of the Board of Directors Regular Meeting Held May 9, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Workshop Meeting Held May 23, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Minutes of the Board of Directors Regular Meeting Held May 23, 2017 Recommendation: That the Board of Directors approve the minutes as presented. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 7.4. Payments of Bills, Refunds, and Wire Transfers Staff responded to questions regarding a few items on the check register. Minutes of the YLWD Board of Directors Regular Meeting Held July 25,2017 at 6:30 p.m. 2 2017-149 Director Hawkins made a motion, seconded by Director Jones, to ratify and authorize disbursements in the amount of $4,472,758.00. Motion carried 5-0. 7.5. Claim for Damages Filed by Joseph Goudlock for Kennedy Wilson Properties, Ltd. Staff provided an overview of the District's process for responding to service calls after hours and answered questions specific to the claim. Director Jones made a motion, seconded by Director Miller, to reject and deny the claim filed by Joseph Goudlock for Kennedy Wilson Properties, Ltd. in the amount of$1,585.00. Motion carried 5-0. 8. ACTION CALENDAR 8.1. Sewer Charges Collected on Tax Roll for Fiscal Year 2018 Staff reviewed the process for collecting sewer maintenance charges from customers connected to the District's sewer system who either receive water service from another purveyor or don't receive a monthly bill. Director Hall made a motion, seconded by Director Jones, to adopt Resolution No. 17-26 Electing to Have Certain Sewer Maintenance Charges Collected on the Fiscal Year 2018 Tax Roll and Superseding Resolution No. 16-13. Motion carried 5-0 on a Roll Call vote. 8.2. Mitigated Negative Declaration for the Well 22 Project Staff reviewed the purpose of and legal requirements for conduct of the study. It was determined that the proposed project could be implemented without causing significant adverse environmental impacts with the incorporation of identified mitigation measures. Comments received during the public review period are included and addressed in the document. Ms. Pat Nelson (resident) inquired as to the location of the project. Minutes of the YLWD Board of Directors Regular Meeting Held July 25,2017 at 6:30 p.m. 3 2017-150 Director Hawkins made a motion, seconded by Director Hall, to: (1) adopt the proposed Mitigated Negative Declaration and make a finding on the basis of the whole record (including the Initial Study and comments received) that there is no substantial evidence that the project will have a significant effect on the environment and that the Mitigated Negative Declaration reflects the Board of Directors' independent judgment and analysis; (2) approve the proposed project, adopt the Mitigation Monitoring and Reporting Program, and authorize staff to file a Notice of Determination for the Project; and (3) determine that the Board Secretary is the custodian of the documents and materials which constitute the record of proceedings upon which the Board's decision is based and such documents and materials will be at the District's headquarters. Motion carried 5-0. 8.3. Administrative Penalty Conservation Credit (Nederhood) Staff reviewed the purpose of the proposed conservation credit, methodology for calculating the amount, and how the funds suggested to be retained from the Conservation Reserve would be utilized. Staff explained that should the Board desire customer notification of the credit utilizing special bill envelopes and electronic media, the total amount proposed to be retained from the Conservation Reserve would need to be increased approximately $2,182. The remaining funds would then be credited in an equal amount to active customer connections for water service which would liquidate the Conservation Reserve. Bill Lawrence (resident) asked about the pending refund to the Placentia- Yorba Linda Unified School District (PYLUSD) as a result of the agency's appeal of certain penalties. Terry Harris (resident) spoke in favor of using the remaining funds in the Conservation Reserve to implement a water use efficiency program and in favor of exploring budget based rate structures. Julia Schultz (resident) spoke in favor of utilizing the remaining Conservation Reserve funds to implement a water use efficiency program and against the issuance of a conservation credit and budget based rate structures. Pat Nelson (resident) spoke in favor of utilizing the remaining Conservation Reserve funds to implement a customer rebate program for the purchase of water efficient devices and against budget based rate structures. Minutes of the YLWD Board of Directors Regular Meeting Held July 25,2017 at 6:30 p.m. 4 2017-151 Jeff Decker (resident) spoke in favor of issuing a conservation credit from the remaining funds in the Conservation Reserve. Bill Lawrence (resident) spoke in favor of utilizing the remaining Conservation Reserve funds to implement a water use efficiency program and commented on the potential credit resulting from the District's net position at the end of FY17. Greg Schultz (resident) spoke in favor of utilizing the remaining Conservation Reserve funds to implement a customer rebate program for the purchase of water efficient devices. Discussion followed regarding budget based rate structures, alternative techniques for encouraging water use efficiency, the community's conservation efforts during the recent drought, limitations of the state's aerial data collection efforts, and other agencies methods for educating customers regarding the potential impact of budget based rate structures. Director Hall made a motion, seconded by Director Jones, to approve a one-time application of a Conservation Credit in an equal dollar amount to active customer connections for water service and authorize $149,882.19 to be retained from the Conservation Reserve for the purposes of.- (1) completing preliminary analysis work towards investigating compliance with Governor Brown's Executive Order B-37-16 "Making Conservation a California Way of Life" for the Yorba Linda Water District; and (2) processing a refund to PYLUSD for an appeal that was granted on the basis of"health and safety". Motion carried 5-0. Staff indicated that the conservation credit would be applied to all active customer connections for water service as of July 25, 2017 6:00 p.m., including those that may be delinquent. Inactive connections would not receive a credit. Customers receiving paper bills will be notified of the credit during the next four billing cycles. 8.4. Potential Customer Credit Resulting from District's Net Position as of June 30, 2017 (Nederhood) Staff explained that the analysis associated with this item would not be available until October 2017 following completion of the FY17 audit and presentation of the Comprehensive Annual Financial Report. Further discussions are necessary with the District's legal counsel, financial advisors, bond counsel and auditors regarding the potential impacts on YLWD's future financial stability. Board discussion of the District's current unfunded liabilities, reserve balances and debt service requirements prior to consideration of this matter is also needed. Minutes of the YLWD Board of Directors Regular Meeting Held July 25, 2017 at 6:30 p.m. 5 2017-152 Jeff Decker (resident) commented on the District's historical revenues and expenses and a handout he had prepared and distributed to the Board. He also spoke against the establishment of a rate stabilization reserve. Terry Harris (resident) spoke in favor of issuing a customer credit resulting from the District's net position at the end of FY17. Julia Schultz (resident) spoke in favor of funding future capital improvement projects and the establishment of a rate stabilization reserve. Pat Nelson (resident) spoke in favor of the establishment of a rate stabilization reserve and funding future repairs and replacements and capital improvement projects. Bill Lawrence (resident) commented on setting up a mechanism for issuing customer credit's resulting from the District's net position and the rate stabilization reserve. Staff noted some of the pending adjustments to the year-end financials and suggested the Board consider scheduling a workshop meeting the following month to discuss the District's bond related obligations and the development of a long range financial plan. Discussion ensued regarding the District's bond related obligations, the purpose of the rate stabilization reserve, information contained in the preliminary ProForma financial statements for FY17, the benefits of issuing bonds to help fund construction of the Fairmont Booster Pump Station Upgrade Project, current reserve balances, the proposed customer credit resulting from the District's net position at the end of FY17, and YLWD's financial obligations and reserve targets. Director Miller made a motion, seconded by Director Jones, to postpone making a decision regarding this matter until after a workshop meeting can be scheduled with the District's financial advisors and bond counsel to discuss YLWD's financial obligations. Motion carried 5-0. The workshop meeting was then scheduled for Thursday, August 24, 2017 at 4:30 p.m. 8.5. California Special Districts Association (CSDA) 2017 Board Elections Staff reviewed the election information as provided by CSDA. Brief discussion of each of the candidates followed. Minutes of the YLWD Board of Directors Regular Meeting Held July 25,2017 at 6:30 p.m. 6 2017-153 Director Hawkins made a motion, seconded by Director Jones, to vote for John DeMonaco of Chino Valley Independent Fire District for Seat C in the Southern Network in the CSDA 2017 Board Election. Motion carried 5-0. 9. DISCUSSION ITEMS 9.1. Budget to Actual Statements for Month Ending June 30, 2017 Staff provided an overview of the statements touching on the cumulative demand recovery for FY17 as compared to FY16. 9.2. Cash and Investment Report for Period Ending June 30, 2017 Staff briefly reviewed the summary report highlighting the interest earned and reserve balances, and noted major expenditures scheduled in the next few months. 9.3. District Unfunded Long-term Projects The Board determined to postpone discussion of this matter to a future workshop meeting. 9.4. Request for Proposals (RFP) for Contractual Services (Nederhood/Miller) The Board and staff discussed the number of active contracts, periodic review of existing contracts and the process for issuing RFP's, and the status of revisions to the District's purchasing policy. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports None. 10.2. General Manager's Report General Manager Marc Marcantonio reported on local agency efforts to help recharge the groundwater basin and scheduled flushing of the District's water distribution system. Staff was instructed to place an item on the next regular meeting agenda for the Board to consider the District's position on AB 1000. Each of the managers (or their designee) reported on activities within their respective departments. Minutes of the YLWD Board of Directors Regular Meeting Held July 25, 2017 at 6:30 p.m. 7 2017-154 10.3. General Counsel's Report None. 10.4. Future Agenda Items and Staff Tasks Staff was instructed to place the following items on the next regular meeting agenda: ■ Development of Water Shortage and Drought Response Plan ■ Timeline for Updating the Strategic Plan ■ Adjusting Time of Regular Meetings and Establishing Time of Adjournment ■ Comparison of Retail Water Rates Staff was also instructed to provide the Board with a copy of the revised operating budget as adopted the previous month. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) ■ Next meeting is scheduled July 27, 2017 at 4:00 p.m. 11.2. 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. 11.3. Joint Agency Committee with City of Placentia (Miller/Nederhood) ■ Next meeting yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings. 12.1 LAFCO — July 12, 2017 (Nederhood —As Needed) 12.2 YL City Council — July 18, 2017 (Miller) Minutes of the YLWD Board of Directors Regular Meeting Held July 25,2017 at 6:30 p.m. 8 2017-155 12.3. MWDOC Board — July 19, 2017 (Nederhood) 12.4. OCWD — July 19, 2017 (Jones) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from July 26 — September 30, 2017 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. ACWA Region 8 Water Reliability Program — August 24, 2017 Director Hawkins made a motion, seconded by Director Hall, to approve Director attendance at this event if desired. Motion carried 5-0. 15. ADJOURNMENT 15.1. The meeting was adjourned at 9:44 p.m. nnie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held July 25, 2017 at 6:30 p.m. 9