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HomeMy WebLinkAbout2019-04-23 - Board of Directors Meeting Minutes 2019-038 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, April 23, 2019, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 5:30 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Brooke Jones, President Marc Marcantonio, General Manager Phil Hawkins, Vice President Brett R. Barbre, Asst General Manager Andrew J. Hall John DeCriscio, Operations Manager J. Wayne Miller Gina Knight, Human Resources/Risk Manager Al Nederhood Delia Lugo, Finance Manager Pasquale Talarico, Director of Public Affairs Rosanne Weston, Engineering Manager Annie Alexander, Executive Asst/Board Secretary Bryan Hong, Principal Engineer Vivian Lim, Human Resources Analyst Kaden Young, Senior Management Analyst ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 4. PUBLIC COMMENTS Jim Fisler, Director for Mesa Water District, addressed the Board and requested the District's support for his candidacy in the upcoming election for OC LAFCO's regular special district member seat. 5. DISCUSSION ITEMS 5.1. Summary of District's Draft Operating Budgets for Fiscal Years 2020-21 Staff summarized historical, projected, and budgeted expenses for supplies and services and responded to questions from the Board regarding expense categories with notable changes. Minutes of the YLWD Board of Directors Workshop Meeting April 23,2019 at 530 p.m. 1 2019-039 The Board requested staff to provide additional detail for the proposed supplies and services budgets (specifically materials, professional services, and travel and conference expenses) separating the water and sewer enterprises and costs associated with the formation of a Community Facilities District. Staff then reviewed projected and budgeted volumetric water revenue, revenue from water and sewer service charges (based on proposed 10% water service rate adjustment effective January 1St of 2020 and 2021), other operating and non-operating revenues, and total revenues. Staff also reviewed the projected and budgeted variable and fixed costs, and salaries and related expenses. Staff presented three versions of a draft Capital Improvement Plan (CIP) for Fiscal Years 2020 through 2024 with different funding scenarios. Staff also provided an overview of the listed projects and assigned priority. President Jones declared a recess at 6:59 p.m. The meeting reconvened at 7:07 p.m. Lengthy discussion followed regarding the District's Asset Management Plan (AMP), associated project prioritization, and funding philosophies. The Board requested staff to provide additional detail related to projected salaries for Fiscal Years 2020 and 2021, and projected water service rate adjustments for Fiscal Years 2022 through 2024 if the proposed 10% adjustments in Fiscal Years 2020 and 2021 were adopted and a ProForma for the same period. Staff then summarized Fitch's rating criteria and the District's projected ability to maintain its current AA rating with the proposed water service rate adjustments in Fiscal Years 2020 and 2021. Following further discussion, the Board requested staff to provide the change in metrics resulting from the application of a 9% rather than 10% water service rate adjustment. Staff indicated that all requested detail and metrics would be ready at the end of the following week. 5.2. Estimated Costs for Strategic Plan Initiatives (Hall) Staff reviewed the status and estimated costs for initiatives identified in the District's Strategic Plan. Director Hall requested additional detail on the costs and timeline for updating the District's security (Goal 1 — Initiative 3). Minutes of the YLWD Board of Directors Workshop Meeting April 23,2019 at 5:30 p.m. 2 2019-040 Staff briefed the Board on the status of potential grant funding for Wells 22 and 23 (Goal 1 — Initiative 1). Brief discussion followed regarding planning for the next Proposition 218 process. 6. ADJOURNMENT 6.1. The meeting adjourned at 8:11 p.m. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Workshop Meeting April 23,2019 at 5:30 p.m. 3