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HomeMy WebLinkAbout2009-10-05 - Board of Directors Meeting Minutes 2009-148 ' MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING October 5, 2009 1. CALL TO ORDER The October 5, 2009 special meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT John W. Summerfield, President Ken Vecchiarelli, General Manager William R. Mills, Vice President Art Kidman, Legal Counsel Paul R. Armstrong Cindy Navaroli, Interim Finance Director Michael J. Beverage Stacy Bavol, Customer Svc Supervisor Ric Collett Annie Alexander, Executive Secretary OTHER VISITORS Joshua Lentz, Assistant Vice President, Fieldman Rolapp & Associates Kurt Yeager, Attorney, Stradling Yocca Carlson & Rauth Laurie Park, Associate, McCormick, Kidman & Behrens 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. PUBLIC COMMENTS None. 6. CLOSED SESSION The meeting was adjourned to Closed Session at 4:02 p.m. All Directors were present. Also present were Messrs. Vecchiarelli, Kidman, Lentz, Yeager and Ms. Park. 6.1. Conference with Legal Counsel - Anticipated Litigation Pursuant to Subdivision (b) of Section 54956.9 of the California Government Code ' Number of Potential Cases: Unknown The Board reconvened in Open Session at 5:14 p.m. President Summerfield announced that no action was taken during Closed Session that was required to be reported under the Brown Act. 2009-149 7. ACTION CALENDAR ' 7.1. Approved Rate Increase and Effective Billings Mr. Vecchiarelli explained that the purpose of the meeting was for the Board to consider the implementation method of the rate increase. The increase was implemented for all billings effective September 14, 2009 which resulted in customers being charged at the new rate for water used before that date. The District has received a number of complaints from customers opposed to the retroactive application of the increase. Mr. Vecchiarelli then summarized the options being presented to the Board. Option A would make no changes to the implementation method of the increase. Option B would be to recalculate all bills and apply the increase prospectively with usage beginning September 14, 2009. Should the Board decide to move forward with Option B, staff will need to modify the billing program to recalculate the bills. This option would also result in an estimated shortage of $829K in revenue needed to meet the District's debt service requirements. Pearl Kaidin, resident, addressed the Board and expressed her disappointment with the retroactivity of the rate increase. Mr. Vecchiarelli then responded to questions from the Board regarding the ' number and content of the calls received by Customer Service. Director Beverage spoke regarding the implementation of the rate increase and made a motion to instruct staff to present the Board with a financial alternative that would allow the District to refund its customers for usage billed retroactively. Director Collett stated that he supported Director Beverage's comments and seconded the motion. Directors Mills and Armstrong both stated that they also supported the motion. The motion passed with the Board voting 5-0. Following brief discussion, it was the consensus of the Board to consider the need for a special meeting to address this matter. Staff was instructed to determine a date for the special meeting at the next regular meeting on October 8, 2009. 2 2009-150 ' 8. ADJOURNMENT 8.1. The meeting was adjourned at 5:30 p.m. The next regular meeting of the Board of Directors will be held October 8, 2009 at 8:30 a.m. Ken Vecchiarelli Board Secretary I I 3