HomeMy WebLinkAbout2022-03-22 - Board of Directors Meeting Minutes 2022-036
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
Tuesday, March 22, 2022, 5:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. PARTICIPATION INSTRUCTIONS
Were included on the agenda.
2. CALL TO ORDER
The meeting was called to order at 5:33 p.m.
3. PLEDGE OF ALLEGIANCE
Vice President Jones led the pledge.
4. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
J. Wayne Miller, PhD, President Doug Davert, Assistant General Manager
Brooke Jones, Vice President John DeCriscio, Operations Manager
Trudi DesRoches Gina Knight, Human Resources and Risk Manager
Phil Hawkins Delia Lugo, Finance Manager
Tom Lindsey Rosanne Weston, Engineering Manager
Alison Martin, Public Affairs Manager
Annie Alexander, Board Secretary
Paige Appel, Budget Analyst
Danielle Logsdon, Principal Engineer
Veronica Ortega, Executive Assistant
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP (Left the meeting at 6:30 p.m.)
Kari Vozenilek, Of Counsel, Kidman Gagen Law LLP (Joined the meeting at 6:30 p.m.)
5. PUBLIC COMMENTS
None.
The Board briefly discussed taking Item No. 8.1. prior to Closed Session. It was
determined not to make this change.
Minutes of the YLWD Board of Directors Special Meeting Held March 22, 2022 at 5:30 p.m.
2022-037
6. ACTION CALENDAR
6.1. Re-authorizing Continuation of Virtual/Teleconference Board Meetings
Director Jones made a motion, seconded by Director DesRoches, to adopt
Resolution No. 2022-XX finding and determining that: (1) a state of
emergency related to COVID-19 continues to be in effect; (2) state and local
officials continue to recommend measures to promote social distancing in
connection with COVID-19; (3) due to the COVID-19 emergency, meeting
in person could present imminent risks to the health and safety of attendees;
and (4) continued remote meetings are hereby re-authorized for the period
of March 22, 2022 through April 21, 2022 pursuant to California Government
Code Section 54953(e). Motion carried 5-0-0-0 on a roll call vote.
6.2. Identification of Agency Designated Representative(s) for Labor
Negotiations
Director Hawkins made a motion, seconded by Director Jones, to designate
Andrew Gagen, General Counsel, as the District's representative for labor
negotiations with the Assistant General Manager. Motion carried 5-0-0-0
on a roll call vote.
President Miller opened the meeting to public comment on Closed Session items for
which there were none.
7. CLOSED SESSION
The Board entered Closed Session at 5:41 p.m. All Directors and General Counsel
were present.
7.1. Conference with Labor Negotiators
Pursuant to Section 54957.6 of the California Government Code
Agency Designated Representative: Andrew Gagen, General Counsel
Unrepresented Employee: Assistant General Manager
7.2. Public Employment
Pursuant to Section 54957 of the California Government Code
Title: General Manager
7.3. Conference with Legal Counsel — Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the
California Government Code
Minutes of the YLWD Board of Directors Special Meeting Held March 22,2022 at 5:30 p.m. 2
2022-038
Name of Case: Orange County Water District, et al. v. 3M Company et
al. (Orange County Superior Court — Case No. 30-
2020-01172419-CU-PL-CXC)
The Board returned to Open Session at 6:38 p.m.
President Miller announced that the Board took no reportable action during Closed
Session.
8. DISCUSSION ITEMS
8.1. Summary of Draft Budget for Fiscal Year 2022-23, Water Operating Plan,
Variable Costs and Revenues, and 5-Year Capital Improvement Plan
Staff began the presentation by summarizing communication channels
utilized to encourage public participation in the budget workshops, topics
covered during the previous workshop, and topics to be covered during this
workshop. Staff noted that the draft budget had been prepared to align with
the recent water/sewer rate study (rate study) and that in response to
increased inflation, projects in the draft 5-year Capital Improvement Plan
were reprioritized decreasing the total to $37M, which is lower than the
Asset Management Plan's recommendation of $51 M. Staff also
commented on increased costs associated with operating the new water
treatment plant and the potential need for conducting an additional budget
workshop sometime between April 20, 2022 and May 24, 2022.
Staff explained that the most recent rate study was prepared using financial
data and projections as of January 2021 and that the graphs and tables in
the draft budget presentation for Fiscal Year 2022-23 included data from
the audited financials for Fiscal Year 2020-01, assumptions from the rate
study, and projections for Fiscal Year 2021-22. Staff then reviewed the
consolidated financial summary of the FY22-23 draft budget, types of and
projections for operating and non-operating revenue, and projected
expenses.
Staff then reviewed the total water production demand in FY20-21,
projected demand for FY21-22, draft budgeted demand for FY22-23, and
assumptions included in the rate study. Staff also reviewed how the water
production demand budget was calculated, efforts made to meet OCWD's
annual Basin Production Percentage, and projected variances in
groundwater versus import water demand in FY21-22 caused by delayed
utilization of the water treatment plant.
Staff provided an overview of projected variable costs for FY21-22 as
compared to the draft budget for FY22-23, highlighted the change between
Minutes of the YLWD Board of Directors special Meeting Held March 22,2022 at 5:30 p.m. 3
2022-039
the amount of import versus groundwater purchases, and noted projected
increased power costs. Staff then reviewed more detailed historic and
projected variable costs as compared to rate study assumptions, including
rate increases from OCWD, MWDOC, MET, and SCE, and responded to
associated questions from the Board.
Staff also reviewed projected revenues as compared to rate study
assumptions, including retail water consumption, and noted that the
projections did not include any revenue from potential pass-through
charges. Staff noted that should the state declare a mandatory reduction in
water consumption once again, the Board may need to consider
implementing water drought rates. Staff then reviewed a more detailed
analysis of historic, projected, and budgeted revenues, including
assumptions in the rate study, and responded to questions from the Board
regarding the District's line of credit.
Staff provided an overview of the proposed FY22-23 budget for the 5-year
Capital Improvement Plan (CIP), cost estimates for and status of the listed
projects, and the planned update of the District's Water Master Plan.
Discussion followed regarding the schedule for and cost of implementing
advanced metering infrastructure, the statewide indoor water use standard
of 55 gallons per person per day through January 2025 (aggregated across
the population in a service area), and capital outlay for redesigning the
District's computer network and replacing vehicles and large equipment.
Staff explained that the draft FY22-23 water enterprise budget was
contingent on the successful issuance of$35M in bond debt.
Director Hawkins stated that he would be participating in the May 24, 2022
Board meeting remotely during which the final FY22-23 budget was
scheduled to be considered. Assistant General Manager Davert
commended staff for their efforts in developing the draft FY22-23 budget
and outlined topics to be covered during the next budget workshop meeting.
President Miller commended staff and the District's legislative consultants
for their part in successfully obtaining $500K as part of the federal
appropriations package to construct an additional heli-hydrant.
9. ADJOURNMENT
9.1. Director Hawkins made a motion, seconded by Director Lindsey, to adjourn
the meeting at 8:17 p.m. Motion carried 5-0-0-0 on a roll call vote.
Annie Alexander
Board Secretary
Minutes of the YLWD Board of Directors Special Meeting Held March 22,2022 at 5:30 p.m. 4