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Home My WebLink About2021-02-09 - Board of Directors Meeting Minutes 2021-010 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, February 9, 2021, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. 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. 2. CALL TO ORDER The meeting was called to order at 6:31 p.m. 3. PLEDGE OF ALLEGIANCE President Hawkins led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Phil Hawkins, President Brett R. Barbre, General Manager J. Wayne Miller, PhD, Vice President Doug Davert, Assistant General Manager Trudi DesRoches John DeCriscio, Operations Manager Brooke Jones Gina Knight, Human Resources and Risk Manager Tom Lindsey Delia Lugo, Finance Manager Rosanne Weston, Engineering Manager Annie Alexander, Sr Exec Asst/Board Secretary Paige Appel, Budget Analyst Alison Martin, Public Affairs Manager Veronica Ortega, Executive Assistant ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA None. Minutes of the YLWD Board of Directors Regular Meeting Held February 9,2021 at&30 p.m. 1 2021-011 6. INTRODUCTIONS AND PRESENTATIONS 6.1. Elected Official Liaison Reports Yorba Linda City Council Member Gene Hernandez commented on the County's COVID-19 vaccination distribution process. MWDOC Director Al Nederhood commented on SB 222 and SB 223. 6.2. Federal and State Legislative Update Staff noted that a report on pending legislation had been attached to the agenda packet for this meeting and e-mailed to the Board. 7. PUBLIC COMMENTS None. 8. CONSENT CALENDAR Director Jones requested to remove Item Nos. 8.4. and 8.5. from the Consent Calendar for separate action. Director Jones made a motion, seconded by Director Miller, to approve the remainder of the Consent Calendar. Motion carried 5-0-0-0 on a roll call vote with Director Lindsey abstaining from voting on Item Nos. 8.1. and 8.2. 8.1. Minutes of the Board of Directors Special Meeting Held January 5, 2021 Recommendation: That the Board of Directors approve the minutes as presented. 8.2. Minutes of the Board of Directors Special and Regular Meetings Held January 12, 2021 Recommendation: That the Board of Directors approve the minutes as presented. 8.3. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$7,363,876.91. Minutes of the YLWD Board of Directors Regular Meeting Held February 9,2021 at 6:30 p.m. 2 2021-012 8.6. Directors' and General Manager Fees and Expenses Report for Second Quarter of Fiscal Year 2021 Recommendation: That the Board of Directors receive and file the Directors' and General Manager Fees and Expenses Report for Second Quarter of FY21. 8.7. Award of Professional Services Agreement for Proposition 218 Outreach Communications Recommendation: That the Board of Directors authorize the General Manager to enter into a professional services agreement with Communications Lab for Proposition 218 outreach communications for a 6- month term beginning February 15, 2021, not to exceed a total cost of $30,000. 8.8. Award of Construction Contract for Fiscal Year 2021 Sewer CIPP Rehabilitation Project Recommendation: That the Board of Directors award the Construction Contract for the Fiscal Year 2021 Sewer CIPP Rehabilitation Project to Sancon Technologies, Inc. for$245,570.05, Job No. 2020-51S. 8.9. Declaration of Restrictive Covenants with Brian and Robyn H. Wolfson Recommendation: That the Board of Directors authorize the President and General Manager to execute the Declaration of Restrictive Covenants with Brian and Robyn Wolfson of 4408 Rose Drive, Yorba Linda. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION Staff responded to questions from Director Jones related to the following reports. Director Jones made a motion, seconded by Director DesRoches, to approve Item Nos. 8.4. and 8.5. Motion carried 5-0-0-0 on a roll call vote. 8.4. Budget to Actual Reports for the Month Ending December 31, 2020 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for the Month Ending December 31, 2020. 8.5. Cash and Investment Report for Period Ending December 31, 2020 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for Period Ending December 31, 2020. Minutes of the YLWD Board of Directors Regular Meeting Held February 9, 2021 at 630 p.m. 3 2021-013 9. ACTION CALENDAR 9.1. Board of Directors' Committee, Agency, and Intergovernmental Meeting Assignments Director Jones made a motion, seconded by Director Lindsey, to approve the proposed committee, agency, and intergovernmental meeting assignments for the 2021 calendar year. Motion carried 5-0-0-0 on a roll call vote. 9.2. 2020 Water and Wastewater Rate Study Staff provided an overview of the District's water infrastructure; estimated life span, refurbishment, and replacement timelines and costs; and historical financing methodologies. Staff then reviewed upcoming challenges for the District; current funding mechanisms and water rate structure; and projected expenses, days in cash, reserve balances, and debt coverage ratios through FY26. Sanjay Gaur, Vice President of Raftelis and Project Manager, reviewed the process for conducting a rate study; legal requirements associated with ratemaking; the District's financial policies and reserve targets; and current and proposed water and sewer financial plans and rate adjustments through FY26. President Hawkins opened the floor to public comment. Council Member Hernandez and MWDOC Director Nederhood commented on the proposed 5-year water rate structure. Discussion followed regarding capital projects included in the sewer financial plan; projected salary-related expenses and pay down of unfunded accrued liabilities (UAL); qualified pass-through expenses, proposed annual collection of capital improvement charges and debt service on the property tax roll; and proposed decrease in the water commodity rate. Discussion also touched on funding depreciation; projected ratio of water supplies (groundwater vs. import water) following completion of the treatment plant; and the process for collecting charges on the annual property tax roll. Following additional dialog, the Board requested staff to work with Mr. Gaur to amend the study to reflect the following parameters in the water financial plan and bring it back to the Board for consideration at the meeting scheduled February 23, 2021: Minutes of the YLWD Board of Directors Regular Meeting Held February 9,2021 at 6:30 p.m. 4 2021-014 ■ Collection of debt service on annual property tax roll. ■ Fixed rate as proposed. ■ Bundle capital expenses with commodity rate. ■ 5-10 year plan for shifting capital expenses from being bundled with the commodity rate to the fixed rate or collection on the annual property tax roll. Staff was also instructed to work with General Counsel to address any necessary percentage or dollar amount cap on pass-through expenses. Director Lindsey made a motion, seconded by Director Jones, to receive and file the 2020 Water and Wastewater Rate Study. Motion carried 5-0-0-0 on a roll call vote. 10. REPORTS, INFORMATION ITEMS. AND COMMENTS 10.1. Director's Reports A list of meetings and events attended was included in the agenda packet. 10.2. General Manager's Report General Manager Barbre noted that he would email his report to the Board and that staff would be scheduling the next Joint Agency Committee meeting with the City of Yorba Linda to review the draft MOU. 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 Next meeting yet to be scheduled. 11.2. Joint Agency Committee with City of Yorba Linda Next meeting yet to be scheduled. Minutes of the YLWD Board of Directors Regular Meeting Held February 9,2021 at 6:30 p.m. 5 2021-015 11.3. Joint Agency Committee with City of Placentia Next meeting yet to be scheduled. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from February 10 —April 30, 2021 13. ADJOURNMENT 13.1. The meeting was adjourned at 9:50 p.m. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held February 9,2021 at 6:30 p.m. 6