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HomeMy WebLinkAbout2023-01-19 - Board of Directors Meeting Minutes2. 3. 4. 5. 6. MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, January 19, 2023, 3:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 PARTICIPATION INSTRUCTIONS Were included on the agenda. CALL TO ORDER The meeting was called to order at 3:00 p.m. PLEDGE OF ALLEGIANCE Director Miller led the pledge. ROLL CALL DIRECTORS PRESENT Brett R. Barbre, President Trudi DesRoches, Vice President Phil Hawkins Tom Lindsey J. Wayne Miller, PhD 2023-008 STAFF PRESENT Mark Toy, General Manager Doug Davert, Assistant General Manager John DeCriscio, Operations Manager Gina Knight, Human Resources and Risk Manager Delia Lugo, Finance Manager Rosanne Weston, Engineering Manager Alison Martin; Public Affairs Manager Veronica Ortega, Assistant Board Secretary Sophia Phuong, Senior Accountant ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP PUBLIC COMMENTS Al Nederhood, resident, spoke about the collegial world of water and mutual respect. He also commented on approvals for past invoices for special projects. DISCUSSION ITEMS 6.1. Board of Directors Goals and Objectives for Fiscal Year 2023-24 Budget Minutes of the YLWD Board of Directors Workshop Meeting Held January 19, 2023 at 3:00 p.m. 2023-009 Staff explained that the purpose of this workshop was for the Board to establish goals and objectives to serve as guidelines for development of the draft operating budget and capital improvement plan for FY23-24. Staff then reviewed the proposed budget development calendar, 2021 rate study assumptions and proposed annual rate adjustments, impact of inflationary pressures on the cost of supplies and materials, annual debt service obligations, key factors that may impact development of the budget, and deadlines for adopting the budget and providing notice to customers of any proposed rate adjustments. No modifications were made to the budget development calendar although President Barbre noted he may have a conflict on April 20, 2023. Discussion touched on the District's rate study assumptions versus staff's projected assumptions for variable and fixed water supply costs and the cap on pass-thru adjustments (10% of the commodity rate). Staff noted that since posting of the agenda, the projected assumption for YLWD's Replenishment Assessment (RA) to OCWD had changed from $587 to $624/acre-foot. Director Miller requested staff include projected assumptions in total dollar amounts as related to the budget rather than rates and percentages. Staff indicated that projected amounts would be included in each portion of the draft FY23-24 budget being presented at future workshops. Discussion continued regarding difficulties with developing projection assumptions due to inflation and increased costs for supplies and materials, projected assumptions for the District's debt service obligations, and YLWD's debt-to-equity ratio. Also discussed were key factors that may impact development of the budget including updating the Water Master Plan, completion of the compensation study, labor negotiations with the bargaining unit, and updating the rate study water fund financial model. Status of the compensation study and selected comparator agencies, and the potential need for conducting a Proposition 218 hearing to consider an updated rate schedule were then discussed. Staff recommended that to ensure the District's cost of service is met, the Board consider following the adopted schedule for proposed rate adjustments in FY23-24. Al Nederhood, resident, commented on his personal evaluation of projections contained within the District's historic budgets, financial statements, and rate studies. Additional discussion followed regarding eligible pass-thru expenses, key factors to be considered for updating the rate study, the timing of finalizing a new agreement with the bargaining unit in relation to conducting a Proposition 218 hearing, status of special invoice distribution for collection of capital finance charges, and future capital improvement projects. Minutes of the YLWD Board of Directors Workshop Meeting Held January 19, 2023 at 3:00 p.m. 2023-010 Staff requested feedback from the Board regarding what type of financial analysis to present for each portion of the draft FY23-24 budget in future workshops such as variable and fixed costs, supplies and services, and the capital improvement plan. President Barbre expressed an interest in budgeting for opportunity improvements to District infrastructure and expanding public outreach activities including written communications and infrastructure tours. General Manager Toy noted that staff would be providing a presentation to the Board at a future meeting regarding the communications plan and efforts to enhance community partnerships. Director Miller commented on ensuring adequate insurance coverage for infrastructure tours. Vice President DesRoches inquired as to wether the information needed for the April budget workshop on salaries and related expenses would be available. General Manager Toy responded that he anticipated this information would be available prior to that time. Director Lindsey noted that he would be missing workshop on capital outlay and commented on his capital improvement plan in alignment with the requirements. 7. ADJOURNMENT 7.1. The meeting was adjourned at 4:03 p.m. Veronica Ortega Assistant Board Secretary Minutes of the YLWD Board of Directors Workshop Meeting Held January 19, 2023 at 3:00 p.m. the February budget desire for a finalized District's bond debt