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Home My WebLink About2019-12-10 - Board of Directors Meeting Minutes (B) 2019-133 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, December 10, 2019, 2019, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:43 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Brooke Jones, President Marc Marcantonio, General Manager Andrew J. Hall Brett Barbre, Assistant General Manager J. Wayne Miller, PhD John DeCriscio, Operations Manager Al Nederhood Gina Knight, Human Resources and Risk Manager Delia Lugo, Finance Manager DIRECTORS ABSENT Pasquale Talarico, Director of Public Affairs Phil Hawkins, Vice President Rosanne Weston, Engineering Manager Annie Alexander, Executive Asst/Board Secretary Robyn Hollinshead, Sr Info Systems Administrator Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Kaden Young, Sr Management Analyst Andrew Gagen, General Counsel, Kidman Gagen Law LLP 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports Proclamations from the following elected officials were presented to President Jones recognizing his service as President during 2019: Yorba Linda City Council Placentia City Council Minutes of the YLWD Board of Directors Regular Meeting Held November December 10,2019 at&30 p.m. 1 2019-134 Assemblymember Phillip Chen Senator Ling Ling Chang Representative Gil Cisneros 5.2. Federal and State Legislative Update None. 6. PUBLIC COMMENTS Greg Schultz, resident, commented on his participation in a tour hosted by the Metropolitan Water District of Southern California (MWDSC) of the Diemer Filtration Plant, Diamond Valley Lake, and Lake Matthews. Assistant General Manager Barbre recognized staff for being presented with an Excellence in Departmental Practice Award from Cityworks. Sr Info Systems Administrator Hollinshead highlighted the team's efforts and resulting enhancements of the District's asset management strategies. 7. CONSENT CALENDAR President Jones removed Item Nos. 7.2. and 7.5. from the Consent Calendar for separate consideration. Director Hall made a motion, seconded by Director Miller, to approve the remainder of the Consent Calendar. Motion carried 4-0-0-1 with Director Hawkins being absent. 7.1. Payments of Bills, Refunds, and Wire Transfers Recommendation. That the Board of Directors ratify and authorize disbursements in the amount of$604,548.36. 7.3. Terms and Conditions for Water and Sewer Service with C & C Development for Altrudy Senior Apartments, Job No. 201948 Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with C & C Development for Altrudy Senior Apartments, Job No. 201948. Minutes of the YLWD Board of Directors Regular Meeting Held November December 10, 2019 at 6:30 p.m. 2 2019-135 7.4. Award of New Janitorial Contract Recommendation: That the Board of Directors authorize the General Manager to enter into a Janitorial Service Contract with Base Hill, Inc. DBA Jan Point for a 3 year term beginning January 1, 2020 and an estimated total cost of$121,392.00. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 7.2. Terms and Conditions for Water Service with EI-Yorba Linda, LLC for Tentative Tract Map 17784, Job No. 201947 Jonathan Conk, Vice President of Project Dimensions, summarized written comments he previously provided to District staff regarding two options described in the report for this item. Director Hall made a motion, seconded by Director Nederhood, to: (1) approve the Terms and Conditions for Water Service with EI-Yorba Linda, LLC for Tentative Tract Map 17784, Job No. 201947; and (2) affirm that approval of the Terms and Conditions for Water Service is separate and apart from whether the District and EI-Yorba Linda, LLC are able to successfully negotiate terms and conditions, at a later time, for sewer service to this development. Motion carried 4-0-0-1 with Director Hawkins being absent. 7.5. Discontinuation of Residential Water Service for Nonpayment Policy (SB 998) Staff reviewed income statistics for Yorba Linda residents and the District's shut-off rate and demographics. Staff then recommended the Board utilize 200% of the federal poverty level to qualify residential customers as low-income. Director Nederhood spoke in favor of utilizing 300% of the federal poverty level. The Board then briefly discussed the recommended percentage. Director Miller made a motion, seconded by Director Hall, to utilize 200% of the federal poverty level to qualify residential customers for Sections 6.0 and 7.0 of the policy; and (2) adopt Resolution No. 2019-XX setting forth a Discontinuation of Residential Water Service for Nonpayment Policy. Motion carried 3-1-0-1 on a Roll Call vote with Director Nederhood voting No and Director Hawkins being absent. Minutes of the YLWD Board of Directors Regular Meeting Held November December 10,2019 at 6:30 p.m. 3 2019-136 8. DISCUSSION ITEMS 8.1. Financial Plan(s) to Address the Potential Lowering of Response Levels for Per- and Poly-fluoroalkyl Substances (PFAS) Staff reviewed the impact on the District's groundwater supply should the Division of Drinking Water determine to lower the response levels for PFAS. This included a presentation on the District's water operating plan, volumetric revenue, variable expenses, and potential budget shortfalls in FY20 and FY21 should the District have to switch to 100% import water. Extensive discussion followed regarding options for mitigating the potential shortfalls including: utilizing the District's Rate Stabilization Fund to cover the second half of FY20; amending certain financial policies; deferring contributions to Public Agency Retirement Services (PARS); deferring projects identified in the 5-Year Capital Improvement Plan; and securing a $20M 3-year revolving line of credit as a cash-flow strategy to fund budgeted capital projects and outlay, as well as upfront expenses for construction of a water treatment plant. Staff and municipal advisors from Fieldman Rolapp will present additional information regarding these options and the impact on the District's debt covenant ratio, days in cash, and current bond ratings at a future Board meeting. 8.2. Status of Engineering Activities Staff reported on the status of various infrastructure projects, other departmental activities, and the pilot test and water treatment plant for removal of PFAS. 8.3. Board of Directors' Committee, Agency, and Intergovernmental Meeting Assignments Staff suggested the Directors submit their preferred assignments to the newly elected President by December 19, 2019. 9. REPORTS, INFORMATION ITEMS, AND COMMENTS 9.1. Directors' Reports Director Hall commented on Government Finance Officers Association's (GFOA) rate comparison tool that he previewed during a webinar. Minutes of the YLWD Board of Directors Regular Meeting Held November December 10,2019 at 6:30 p.m. 4 2019-13t The Directors then noted their attendance at the listed meetings and events. 9.2. General Manager's Report General Manager Marcantonio reported on multiple presentations he provided during the ACWA CLE Workshop and ACWA Conference. He then asked each of the managers to report on activities within their respective departments. 9.3. General Counsel's Report None. 9.4. Future Agenda Items and Staff Tasks Director Miller requested staff prepare two financial plans in relation to the topics covered in Item No. 8.1., one for the potential shortfall and the other for the water treatment plant. He also requested staff prepare an associated communications plan and suggested all three plans be presented to the Board in a workshop format after the upcoming holidays. 10. COMMITTEE REPORTS 10.1. Interagency Committee with MWDOC and OCWD (Jones/Hawkins) ■ Minutes from the meeting held Monday, November 25, 2019 at 4:00 p.m. will be provided when available. ■ Next meeting is scheduled Thursday, January 23, 2020 at 4:00 p.m. 10.2. Joint Agency Committee with City of Yorba Linda (Jones/Hawkins) ■ Next meeting is scheduled Monday, December 16, 2019 at 3:00 p.m. at Yorba Linda City Hall. 10.3. Joint Agency Committee with City of Placentia (Jones/Hawkins) ■ Next meeting is scheduled Wednesday, January 15, 2020 at 3:00 p.m. Minutes of the YLWD Board of Directors Regular Meeting Held November December 10, 2019 at 6:30 p.m. 5 2019-138 11. BOARD OF DIRECTORS ACTIVITY CALENDAR 11.1. Meetings from December 11, 2019 — January 31, 2020 The Board made no changes to the activity calendar. 12. SEATING OF DIRECTORS 12.1. Reorganization of the Board of Directors and Appointment of Officers Director Nederhood made a motion, seconded by Director Hall, to nominate Director Hawkins as President. Motion carried 4-0-0-1 with Director Hawkins being absent. Director Miller made a motion, seconded by Director Jones, to nominate Director Hall as Vice President. Motion carried 4-0-0-1 with Director Hawkins being absent. Director Hall made a motion, seconded by Director Miller, to appoint Annie Alexander as Secretary, Kaden Young as Assistant Secretary, and Delia Lugo as Treasurer for the next calendar year. Motion carried 4-0-0-1 with Director Hawkins being absent. 12.2. Adjourn to Yorba Linda Water District Public Financing Corporation and Financing Authority Regular Meetings A recess was declared at 8:45 p.m. to conduct these meetings. The meeting reconvened at 8:47 p.m. 13. ADJOURNMENT 13.1. The meeting was adjourned at 8:47 p.m. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held November December 10,2019 at 6:30 p.m. 6