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HomeMy WebLinkAbout2023-03-16 - Board of Directors Meeting Minutes1. 2. 3. MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, March 16, 2023, 3:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 PARTICIPATION INSTRUCTIONS Were provided on the agenda. CALL TO ORDER The meeting was called to order at 3:00 p.m. PLEDGE OF ALLEGIANCE Yorba Linda Mayor Gene Hernandez led the pledge. 4. ROLL CALL 5. 6 DIRECTORS PRESENT Brett R. Barbre, President Trudi DesRoches, Vice President Phil Hawkins J. Wayne Miller, PhD Tom Lindsey 2023-028 STAFF PRESENT Mark Toy, General Manager Doug Davert, Assistant General Manager Delia Lugo, Finance Manager Rosanne Weston, Engineering Manager Sophia Phuong, Senior Accountant Jeff McDonald, Maintenance Superintendent Alison Martin, Public Affairs Manager Malissa Muttaraid, Public Affairs Specialist Vivian Lim, Human Resources Analyst Annie Alexander, Board Secretary ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP ADDITIONS/ DELETIONS TO THE AGENDA None. General Manager Toy noted some revisions to the slide deck for Item No. 8.2. and indicated hard copies had been made available to the Board and public. PUBLIC COMMENTS None. Minutes of the YLWD Board of Directors Regular Meeting Held March 16, 2023 at 3:00 p.m. 2023-029 7. ACTION CALENDAR 7.1. Award of Professional Services Agreement for Investment Advisory Services President Barbre explained that this item had been deferred from the regular meeting on March 2, 2023 so the full Board could participate in the deliberation process. Sarah Meacham, Managing Director for PFM Asset Management LLC (PFMAM) and Program Administrator for the California Asset Management Program (CAMP), provided an overview of the assigned team members and PFMAM's experience and services provided, highlighting their California special district clients. Lesley Murphy, Director for PFMAM, then reviewed the proposed investment objectives and approach for management of the District's bond proceeds. Ms. Meacham reviewed the some for the District's reserves, the benefits of becoming a CAMP participant, and details of the cash reserve and term portfolios. Discussion touched on one-time and annual costs to YLWD, the District's historical and current investment practices, qualified administrative costs, recent volatility in the banking sector, water district representation on CAMP Board of Trustees, auditing frequency, and monthly stress testing of portfolios. Director Miller made a motion, seconded by Director Lindsey, to: (1) authorize the General Manager to execute a Professional Services Agreement for Investment Advisory Services and Arbitrage Rebate Calculation Services with PFM Asset Management LLC; and (2) adopt Resolution No. 2023 -XX Authorizing Yorba Linda Water District to join with other agencies as a participant of the California Asset Management Program and to invest in shares of the trust and in individual portfolios. Motion carried 5-0-0-0 on a roll call vote. 8. DISCUSSION ITEMS 8.1. Proposed Water and Sewer Development Fees for Fiscal Year 2023-24 Staff explained that Raftelis was previously contracted to perform a cost of service analysis on the District's water and sewer service development fees and charges. Staff noted that all fees include the cost of labor which would be adjusted upon Board approval of salaries and related expenses for FY23-24. Staff then reviewed the results of the analysis and proposed adjustments to the fees and charges for water service development. Discussion touched on water filling stations and construction meters, developer backflow certification versus employee backflow certification, Minutes of the YLWD Board of Directors Regular Meeting Held March 16, 2023 at 3:00 p.m. 2023-030 penalties for tampering with versus illegal connection to water services, miscellaneous water service fees, and water service capacity fees. Staff then began reviewing the results of the analysis and proposed adjustments to the fees and charges for sewer service development. President Barbre proposed including a separate category of penalties for illegally connecting to the District's water and sewer services and requested staff work with Townsend Public Affairs to explore legislation declaring such violations as felonies. Discussion followed regarding funding strategies for transitioning customers on septic to the District's sewer collection system. President Barbre suggested utilizing a consultant to assist with formulating and securing a funding mechanism. Staff then reviewed a 10 -year versus the current 30 -year scenario for the developer sewer system reimbursement program. The Board requested staff prepare a 17 -year reimbursement program and confirm whether or not there is a legislative mandate for transitioning septic systems to public sewer collection systems. Staff responded to questions from Yorba Linda Mayor Gene Hernandez as to whether the current fees were covering the District's true cost of service. 8.2. Draft Budget for Fiscal Year 2023-24 (Operating Revenue, Supplies and Services, Other Key Updates) Staff outlined the topics to be discussed and reviewed the revenue analysis and rate study comparison, and the proposed water and sewer rates and impact on an average residential customer's monthly bill. Discussion touched on the projected pass-through charge, capital finance charge receivables and establishing a restricted reserve to cover past due amounts, and interest income. Staff then reviewed the supplies and services analysis and rate study comparison, budgeting for agency -wide memberships and sponsorships, conference attendance, bottled water donation partnership, and distribution of a quarterly newsletter. Inflationary factors, capitalization of qualified expenses, and increased costs for raising valve cans and manholes were also discussed. Lastly, staff reviewed historical and projected non-operating and variable expenses as compared to the rate study, and multiple financial scenarios with varying water production and demand percentages and the effect on revenues and variable expenses. Minutes of the YLWD Board of Directors Regular Meeting Held March 16, 2023 at 3:00 p.m. 2023-031 Directors then provided feedback for the next budget workshop and agenda items for the next regular meeting. 9. CLOSED SESSION The Board entered closed session at 2:59 p.m. 9.1. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: General Manager Employee Organization: Yorba Linda Water District Employees Association The Board returned from closed session at 7:14 p.m. 10. REPORT FROM CLOSED SESSION No reportable action was taken during closed session. 11. ADJOURNMENT 11.1. The meeting was adjourned at 7:15 p.m. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held March 16, 2023 at 3:00 p.m.