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Home My WebLink About2020-06-23 - Board of Directors Meeting Minutes (B)1. K 4 3 2020-084 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, June 23, 2020, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 TELECONFERENCE INFORMATION As noted on the agenda, this meeting was facilitated via teleconference pursuant to Paragraph 3 of Executive Order N-29-20 issued by the Governor of California on March 17, 2020. CALL TO ORDER The meeting was called to order at 7:18 p.m. The following items were taken out of order. ROLL CALL DIRECTORS PRESENT Phil Hawkins, President Andrew J. Hall, Vice President Brooke Jones J. Wayne Miller, PhD Al Nederhood STAFF PRESENT Brett R. Barbre, General Manager John DeCriscio, Operations Manager Gina Knight, Human Resources and Risk Mgr Delia Lugo, Finance Manager Pasquale Talarico, Director of Public Affairs Rosanne Weston, Engineering Manager Annie Alexander, Executive Asst/Board Secretary Danielle Logsdon, Principal Engineer Kaden Young, Sr Management Analyst ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP PLEDGE OF ALLEGIANCE ADDITIONS/DELETIONS TO THE AGENDA None. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2020 at 6:30 p.m. [1 7 8 2020-085 INTRODUCTIONS AND PRESENTATIONS 6.1. Elected Official Liaison Reports None. On behalf of the Board, staff presented General Manager Barbre with a commemorative item in recognition of his service on MWDOC's Board of Directors. 6.2. Federal and State Legislative Update Director of Public Affairs Talarico reported on recent social media activity. PUBLIC COMMENTS In response to an inquiry from Julia Schultz, resident, staff commented on when Board meetings might be open for in person attendance by the public. CONSENT CALENDAR Director Nederhood made a motion, seconded by Director Jones, to approve the Consent Calendar. Motion carried 5-0-0-0 on a roll call vote. 8.1. Minutes of the Board of Directors Regular Meeting Held June 9, 2020 Recommendation: That the Board of Directors approve the minutes as presented. 8.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,876,951.26, 8.3. Budget to Actual Reports for the Month Ending May 31, 2020 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for the Month Ending May 31, 2020. 8.4. Cash and Investment Report for Period Ending May 31, 2020 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for Period Ending May 31, 2020. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2020 at 6:30 p.m. 2 2020-086 8.5. Professional Services Agreements for On -Call Surveying Services Recommendation: That the Board of Directors authorize the General Manager to execute three (3) non-exclusive Professional Services Agreements (pending review and approval as to form by General Counsel) for On -Call Surveying Services with Coast Surveying, Inc., Johnson -Frank & Associates, and D. Woolley & Associates, Inc. for an initial period of three (3) years and cumulative total not to exceed $200, 000. 9. ACTION CALENDAR 9.1. Water Rates for Fiscal Year 2021 Staff reviewed the budget assumptions for FY21 and debt service coverage ratio scenarios. Staff recommended the Board consider targeting a debt service coverage ratio of 150% and implementing a 5% increase on the monthly water service charge effective August 1, 2020, a 6 cent increase on the water usage charge effective January 1, 2021, and a PFAS impact fee of approximately $10.80 each month beginning January 1, 2021 and ending June 30, 2021. This scenario would cover an estimated $2.3M shortfall. Discussion of the debt service coverage ratio scenarios and effective dates of the proposed rate increases and PFAS impact fee followed. Julia Shultz, resident, commented on the proposed effective date and term of the PFAS impact fee. Extended discussion of the financial scenarios continued. Director Jones made a motion, seconded by Director Hall, to target a 145% debt service coverage ratio, adopt Resolution No. 2020 -XX implementing a 5% increase on the monthly water service charge effective August 1, 2020, and to direct staff to move forward with messaging an estimated 6 cent increase on the water usage charge effective January 1, 2021 and a PFAS impact fee effective November 1, 2020 in an amount to be determined pending future analysis. Motion carried 5-0-0-0 on a roll call vote. 9.2. Amending the Operating Budget for Fiscal Year 2021 (Financial Summaries) Staff noted that the amended budget for FY21 had been prepared targeting a 150% debt service coverage ratio and would need to be revised to reflect 145% as discussed during the previous item. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2020 at 6:30 p.m. 2020-087 Director Nederhood made a motion, seconded by Director Hall, to approve Resolution No. 2020 -XX adopting an Amended Operating Budget for Fiscal Year 2021 (Financial Summaries) targeting a 145% debt service coverage ratio. Motion carried 5-0-0-0 on a roll call vote. 9.3. Financial Reserves Policy for Fiscal Year 2021 Staff noted that a correction to the funding levels in Section 5.2.2 (B) of the policy had been distributed following posting of the agenda packet. Discussion touched on minimum funding levels, targeted days in cash, and the rate stabilization reserve. Director Jones made a motion, seconded by Director Hall, to approve Resolution No. 2020 -XX adopting a Financial Reserves Policy for Fiscal Year 2021 as revised and rescinding Resolution No. 2019-24. Motion carried 5-0-0-0 on a roll call vote. 10. DISCUSSION ITEMS 10.1. Treatment of Groundwater Supplies to Remove Per- and Polyfluoroalkyl Substances (PFAS) Staff reviewed the status of design and construction of the PFAS removal water treatment plants. 10.2. Coronavirus Mitigation Efforts This topic was covered during the General Manager's report. 11. REPORTS, INFORMATION ITEMS, AND COMMENTS 11.1. Directors' Reports A list of meetings and events attended was included in the agenda packet. 11.2. General Manager's Report General Manager Barbre reported that Golden State Water Company had requested access to the OC 66 emergency interconnection during replacement of the agency's College Reservoir. The District will be reimbursed for any water utilized at cost plus 10%. District staff will also be working with Golden State to construct another emergency interconnection near Crestknoll Drive. Golden State will be funding the cost of construction. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2020 at 6:30 p.m. 4 General Manager Barbre then reported on the status of late bill payments, MWDOC's Board of Directors Division 1 vacancy, and how other local government agencies were conducting their council/board meetings to reduce exposure to Coronavirus. 11.3. General Counsel's Report None. 11.4. Future Agenda Items and Staff Tasks Director Jones requested an item on a future agenda to discuss calculation of pass-through expenses. Staff noted this topic would be addressed during future development of a new rate structure and offered to resend an associated memorandum prepared by General Counsel. 12. COMMITTEE REPORTS 12.1. Interagency Committee with MWDOC and OCWD (Hawkins/Nederhood) ■ Next meeting is scheduled Thursday, July 23, 2020 at 4:00 p.m. 12.2. Joint Agency Committee with City of Yorba Linda (Hawkins/Jones) ■ Next meeting is scheduled Monday, July 27, 2020 at 4:00 p.m. 12.3. Joint Agency Committee with City of Placentia (Jones/Hawkins) ■ Next meeting is yet to be scheduled. 13. BOARD OF DIRECTORS ACTIVITY CALENDAR, 13.1. Meetings from June 24 — July 31, 2020 The Board made no changes to the activity calendar. 14. ADJOURNMENT 14.1. The meeting was adjourned at 8:37 p.m. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2020 at 630 p.m. 5