HomeMy WebLinkAbout2017-10-10 - Board of Directors Meeting Minutes (B) 2017-203
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, October 10, 2017, 6:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 6:37 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 Brett Barbre, Assistant General Manager
Andrew J. Hall, Director Steve Conklin, Engineering Manager
Brooke Jones, Director John DeCriscio, Operations Manager
Gina Knight, HR/Risk and Safety Manager
DIRECTORS ABSENT Delia Lugo, Finance Manager
Phil Hawkins, Director Annie Alexander, Executive Assistant
Rick Walkemeyer, IS Administrator
Kaden Young, Management Analyst
ALSO PRESENT
Andrew Gagen, Partner, Kidman Law LLP
Tom Lindsey, Councilmember, City of Yorba Linda
Jennifer Meza, Senior Client Services Coordinator, Public Agency Retirement Systems
4. ADDITIONS/DELETIONS TO THE AGENDA
None.
5. INTRODUCTIONS AND PRESENTATIONS
The following items were taken out of order.
5.2. Elected Official Liaison Reports
Councilmember Tom Lindsey commented on a recent wildfire and
commended District staff for their preparation efforts. He also commented
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on an upcoming public hearing and landscaping assessment ballot as well
his attendance at MWDSC's recent infrastructure inspection tour.
Assistant General Manager Brett Barbre, in his role as Director for
MWDSC and MWDOC, reported on MWDSC's recent vote in favor of the
California WaterFix. He also commented on the status of litigation with
the San Diego County Water Authority.
Discussion followed regarding the cost and financing for construction
projects associated with the California WaterFix.
5.1. Introduction of Newly Hired Employees
General Manager Marc Marcantonio introduced Kaden Young, newly hired
Management Analyst.
6. PUBLIC COMMENTS
Jeff Decker (resident) commented on documents he obtained from YLWD's
website related to the District's credit ratings from Fitch and Standard & Poors.
He also provided suggestions for interfacing with Fitch.
7. CONSENT CALENDAR
Vice President Nederhood stated he had a question on Item No. 7.4. and
Director Hall stated he had a correction on Item No. 7.3.
Director Jones made a motion, seconded by Director Hall, to approve Item Nos.
7.1., 7.2., and 7.5. Motion carried 4-0-0-1 with Director Hawkins being absent.
7.1. Minutes of the Board of Directors Regular Meeting Held August 8, 2017
Recommendation: That the Board of Directors approve the minutes as
presented.
7.2. Minutes of the Board of Directors Regular Meeting Held August 22, 2017
Recommendation. That the Board of Directors approve the minutes as
presented.
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7.5. Renewal of Auto and General Liability Insurance Policy with Association of
California Water Agencies Joint Powers Insurance Authority (ACWA-JPIA)
Recommendation: That the Board of Directors approve payment to
ACWA-JPIA in the amount of $227,720.17 for renewal of the District's
auto and general liability insurance policy through October 1, 2018.
Director Hall requested that the name "Daniel" be corrected to "Danielle" in the
minutes for the August 24, 2017 workshop meeting.
Vice President Nederhood asked if costs associated with the purchase of
computer servers would be capitalized. Staff responded affirmatively.
Director Hall made a motion, seconded by Director Jones, to approve Item No.
7.3. as corrected and Item No. 7.4. Motion carried 4-0-0-1 with Director Hawkins
being absent.
7.3. Minutes of the Board of Directors Workshop Meeting Held August 24, 2017
Recommendation: That the Board of Directors approve the minutes as
presented.
7.4. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of$2,421,892.14.
8. ACTION CALENDAR
8.1. Establishing Public Agency Retirement Services (PARS) Public Agencies
Post-Employment Benefits Trust and Adopting Pay Down Schedules for
the District's Other Post Employment Benefits (OPEB) and Public
Employees' Retirement System (PERS) Liabilities
Staff reviewed the purpose of this item and associated recommendations.
Discussion followed regarding the District's OPEB and PERS liabilities,
financial benefits provided by establishing a trust account with PARS, the
District's Annual Required Contribution (ARC) for OPEB liabilities, funds
being utilized to open the trust account, actuarial valuation of the District's
OPEB liability, management of investments with PARS, and PARS'
organizational structure.
Jennifer Meza from PARS reviewed the organizations services,
operations, and primary contacts.
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Staff noted that General Counsel had reviewed the draft agreement and
provided suggested revisions to PARS.
Ms. Meza also reviewed PARS' service fees, required financial reporting
of pension liabilities, and investment strategies.
Discussion continued regarding the amount budgeted for this fiscal year's
ARC payment and including it with the funds being utilized to open the
trust account. Selection of the investment strategy will be discussed in a
future workshop meeting.
Director Hall made a motion, seconded by Director Nederhood to: (1)
approve Resolution No. 17-32 adopting the Public Agencies Post-
Employment Benefits Trust administered by PARS, subject to review as to
form by General Counsel; (2) direct staff to make a payment in the amount
of $471,599 in order to open the PARS account; and (3) adopt a 5 year
pay down schedule for the District's OPEB liabilities, beginning July 1,
2017, in the amount of $377,239. Motion carried 4-0-0-1 on a Roll Call
with Director Hawkins being absent.
Discussion ensued regarding the District's projected PERS liabilities, pay
down schedule options, associated investment return on contributions, and
ability to adjust the selected pay down schedule.
Staff noted that a formal policy for pay down of the District's OPEB and
PERS liabilities would be presented for consideration at the next regular
meeting.
Director Nederhood made a motion, seconded by Director Miller, to adopt
a 10 year pay down schedule for the District's PERS liabilities beginning
July 1, 2018; and (2) direct staff to prepare a policy with pay down
schedules for the District's OPEB and PERS liabilities for consideration at
the October 24, 2017 regular meeting. Motion carried 4-0-0-1 with
Director Hawkins being absent.
8.2. Construction Contract for the Drilling of Well 22
Staff explained that bids were received from five contractors for this project.
Following review and tabulation of the bid documents, staff recommended
award to Bakersfield Well & Pump Company.
Discussion regarding next phases of the project followed.
Jeff Decker (resident) commented on the District's Capital Improvement
Plan (CIP) and total budget for the project.
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Director Hall made a motion, seconded by Director Miller, to award the
Construction Contract for the Drilling of Well 22 to Bakersfield Well &
Pump Company for $676,629.90, Job No. J2009-22 #22. Motion carried
4-0-0-1 with Director Hawkins being absent.
8.3. Waterline Replacement for Tract 15199 at the Northwest Corner of La
Palma Ave and Camino de Bryant
Staff explained that $50K was included in the FY18 budget to begin the
design work for this project. Construction was scheduled to take place
during FY19 for an estimated cost of $850K. Due to the number of main
breaks in recent years and the City's planned repaving of the affected
streets, staff recommended the entire project be completed this year in
order to minimize resident inconvenience.
Discussion ensued regarding issues with the pipeline material and
aggressive soils.
Staff noted the City was willing to delay repaving the affected streets to
accommodate completion of the project.
Discussion continued regarding any existing warranty on the pipeline
material, estimated paving costs, and community outreach efforts.
Director Hall made a motion, seconded by Director Miller, to authorize
staff to proceed with replacement of approximately 2,300 feet of waterline
within Tract 15199 for an estimated cost of $900,000. Motion carried
4-0-0-1 with Director Hawkins being absent.
9. DISCUSSION ITEMS
9.1. Budget to Actual Reports for the Month Ending August 31, 2017
Staff reviewed key information contained in the reports. Discussion
focused on cumulative volumetric water revenue, significant
previous/planned expenditures, and water production/consumption trends
and projections.
9.2. Cash and Investment Report for Period Ending August 31, 2017
Staff briefly reviewed the report and touched on the total average yield,
days of cash on hand, and a recent debt service payment.
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10. REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1. Directors' Reports
Vice President Nederhood reported on a tour he had attended with
Director Jones of the District's sewer collection system. He also
commended staff on their preparation efforts during the most recent
wildfire.
10.2. General Manager's Report
General Manager Marcantonio summarized staff's preparation efforts
during the most recent wildfire. He noted the District's Emergency
Operations Center had been activated primarily as a training exercise and
reported on the fire's status. He then asked each of the managers (or
their designee) to report on activities within their respective departments.
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 September 28, 2017 at 4:00 p.m. were
provided in the agenda packet.
• Next meeting is scheduled November 20, 2017 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Miller/Hawkins)
■ Minutes of the meeting held September 18, 2017 at 4:00 p.m. will
be provided when available.
■ Next meeting is scheduled December 18, 2017 at 4:00 p.m. at YL
City Hall.
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11.3. Joint Agency Committee with City of Placentia
(Miller/Nederhood)
■ Next meeting yet to be scheduled.
12. INTERGOVERNMENTAL MEETINGS
12.1 YL Mayor's Prayer Breakfast— September 14, 2017 (Jones/Miller/Nederhood)
12.2 ACWA Region 5 Tour— September 17, 2017 (Jones)
12.3. YL City Council — September 19, 2017 (Hall)
12.4. MWDOC — September 20, 2017 (Nederhood)
12.5. SDLA Governance Foundations Workshop — September 25, 2017 (Hall)
12.6. ISDOC Executive Committee — October 3, 2017 (Nederhood)
12.7. YL City Council — October 3, 2017 (Jones)
12.8. MWDOC Board — October 4, 2017 (Nederhood)
12.9. OCSD Operations Committee — October 4, 2017 (Jones)
12.10. MWDSC Infrastructure Inspection Trip — October 6, 2017 (Jones/Nederhood)
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from October 11 — December 31, 2017
14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS
14.1. MWDSC Infrastructure Inspection Trip — October 6, 2017
MWDOC Elected Officials' Forum — November 2, 2017
Director Hall made a motion, seconded by Director Miller, to ratify and/or
approve Director attendance at these events if desired. Motion carried
4-0-0-1 with Director Hawkins being absent.
General Manager Marcantonio noted that some Directors would not be in
attendance at the second regular meeting in December which was recently
rescheduled to Wednesday, December 27, 2017. He suggested the Board
consider meeting on another date or cancelling the meeting.
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Following discussion, the Board requested an action item be placed on the
December 12, 2017 agenda to authorize payment of unpaid bills due before year
end. Ratification of said payments would be placed as an action item on the
January 9, 2018 agenda.
15. ADJOURNMENT
15.1. The meeting was adjourned at 9:27 p.m.
Annie Alexander
Assistant Board Secretary
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