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HomeMy WebLinkAbout2024-03-28 - Board of Directors Meeting Minutes1. VA 3 4. 5, 6. 7. 8. MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, March 28, 2024, 8:30 a.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 8:30 a.m. PLEDGE OF ALLEGIANCE Director Hernandez led the pledge. ROLL CALL DIRECTORS PRESENT Trudi DesRoches, President Tom Lindsey, Vice President Brett R. Barbre Phil Hawkins Gene Hernandez 2024-036 STAFF PRESENT Mark Toy, General Manager Doug Davert, Assistant General Manager John DeCriscio, Operations Manager Delia Lugo, Finance Manager Lori Thompson, Human Resources and Risk Manage Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Paige Appel, Budget Analyst Brianna De La Cruz, Public Affairs Specialist Sophia Phuong, Accounting Supervisor ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP ADDITIONS/DELETIONS TO THE AGENDA (None) AB 2449 TELECONFERENCE REQUESTS (None) PUBLIC COMMENTS (None) DISCUSSION ITEMS The following items were taken out of order. Minutes of the YLWD Board of Directors Regular Meeting Held March 28, 2024 at 8:30 a.m_ 2024-037 8.2. Fiscal Year 2024-25 Proposed Water and Sewer Customer and Developer Fees Staff reviewed the water and sewer customer and developer fees for FY23-24 and those proposed for FY24-25. Director Barbre requested an update on the Septic to Sewer Conversion Evaluation Project. General Manager Toy will include this with his report at the next Board meeting. Vice President Lindsey suggested staff keep the current fee schedules of surrounding cities on file for comparison. Director Barbre suggested doing the same for water and sewer rates of local agencies. 8.1. Fiscal Year 2024-25 Budget Workshop #2 Staff reviewed the proposed rates and impact on an average customer's bill. Director Barbre requested staff identify the amount included in the commodity rate not directly related to the provision of water service. Discussion touched on pass -through expenses and collection limitations. President DesRoches expressed concern regarding utilizing an average of the last 5 years of water consumption data for projections. Staff suggested that utilizing an average of 3 years may be helpful. Director Barbre suggested utilizing an average of the last 10 years of data and asked about the feasibility of reducing rates mid -year. Staff will prepare a new slide with projections based on an average of 3 years of consumption data (budget vs. actual) and include it with General Manager Toy's report at the next Board meeting. Staff then reviewed projected revenue, supplies, and services, as compared to prior year actuals, the current budget, and the Rate Study. Staff also reviewed notable variances and will provide additional information regarding expenses for dues and memberships at the next budget workshop. Director Barbre requested that expenses for routine customer notifications be separated from public outreach activities under the Communications category. He also requested that the description for the Data Processing category be updated to reflect current terminology. Discussion continued regarding increased costs for insurance, maintenance, professional services, and non -operating expenses. Staff then presented a consolidated financial summary of the proposed budget and responded to questions related to depreciation and capital contributions. Director Barbre requested that the term "Net Income" be revised to "Net Position" and for staff to look into the feasibility of issuing debt for the sewer fund. Staff provided an overview of the 5-year Capital Improvement Plan and proposed budget for the next fiscal year. Discussion touched on individual projects, available and pending funding, and new projects that were not included in the 2018 Asset Management Plan. Minutes of the YLW D Board of Directors Regular Meeting Held March 28, 2024 at 8:30 a.m. 2024-038 Staff then confirmed requests made during the workshop including: • Report on status of the Septic to Sewer Conversion Evaluation Project. • Perform analysis utilizing an average of 3 years of water consumption data for projections. Staff may provide this to the Financial Review Group prior to presenting it to the Board. • Confirm whether utilizing an average of 5 years of water consumption data for projections is still valid. Staff will try to include this information with General Manager Toy's next monthly report. • Provide more detail for dues and memberships and confirm whether employee certifications are included. ■ Change references to "net income" to "net position". ■ Look into the discrepancy in net position on the consolidated financial summary. • Create a bar chart comparing budgeted versus actual water consumption for the last 10 years. Staff will try to provide this to the Board before the next meeting. • Prepare a comparison of fee schedules for the cities of Brea, Anaheim, Placentia, and Yorba Linda. ■ Determine the amount of fixed costs still included in the commodity rate. • Communicate that the pass -through rate is 19 cents less than applicable expenses in future customer outreach efforts. ■ Separate the expenses for routine customer notifications from public outreach activities under the Communications category. • Ensure that budget category descriptions are utilizing current terminology. ■ Explore the feasibility of issuing debt for the sewer fund. ■ Schedule a CIP tour for the Board in May. ■ Identify the impact of proposed rates on the average residential customer's bill. 9. ADJOURNMENT 9.1. The meeting was adjourned at 10:44 a.m. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held March 28, 2024 at 8:30 a.m. 3