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HomeMy WebLinkAbout2024-11-14 - Board of Directors Meeting Minutes 2024-115 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, November 14, 2024, 8:30 AM 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 8:30 a.m. 3. PLEDGE OF ALLEGIANCE Vice President Lindsey led the pledge. President DesRoches announced that Phil Hawkins had submitted a Letter of resignation from the office of Director and that the Board would be discussing options for filling the vacancy at a future meeting. She also acknowledged former Director Hawkins' 14 years of dedicated service to the District. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President Doug Davert, Assistant General Manager Brett R. Barbre John DeCriscio, Operations Manager Gene Hernandez Christine Mcllrevey, Finance Manager Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Joanna Gonzalez, Public Affairs Officer Robyn Hollinshead,Senior Information Systems Administrato Sophia Phuong, Accounting Supervisor ALSO, PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA General Counsel Gagen requested to remove Item No. 18.1. from the agenda.There were no objections. 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. INTRODUCTIONS AND PRESENTATIONS Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 1 2024-1 16 7.1. Introduction of New Hires General Manager Toy introduced the following new employees and provided an overview of their professional backgrounds. Vincent Larragoitiy, Maintenance Worker I Carlos Palacios, Maintenance Worker I Ben Peralta, Associate Engineer Irma Lopez, Customer Service Supervisor General Manager Toy then recognized Adrian Ayala, Assistant Engineer II, for being awarded Employee of the Quarter. 7.2. Elected Official Liaison Reports (None) 8. PUBLIC COMMENTS (None) 9. ACTION CALENDAR 9.1. Appointment of Corporate Officer Director Barbre made a motion, seconded by Director Hernandez, to appoint Christine Mcllrevey, Finance Manager, as Treasurer for the Yorba Linda Water District. Motion carried 4-0-0-0. 9.2. Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2024 Staff introduced Riley Greenlee, Senior Manager for Lance, Soll & Lungard, LLP, who reviewed the interim and year-end fieldwork phases of the audit process. He noted that the District and Financing Authority received an unmodified auditor's opinion and summarized the results of the audit, changes from the prior fiscal year, and key financial highlights. Vice President Lindsey commended former Finance Manager Delia Lugo and Finance department staff for their work on the audit. Director Barbre acknowledged the corrections made to the cover letter from the previous year and requested the following corrections: Page 21 Change "Water is provided to the entire service area. Sewer is provided to most of the service areas." to "Water is provided to most of the service area. Sewer is provided to the entire service area." Page 27 Change "City's Investment Policy" to "District's Investment Policy in the header for Section A. Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 2 2024-117 Page 28 When listing credit ratings include Fitch and Moody's ratings along with Standard & Poor's ratings as permissible. Page 31 Include "Lennar" in the description of "Cielo Vista Development" listed in Cash Deposits. Director Barbre also requested staff provide the number of employees in the Tier I, II, and III pension plans as identified on Page 37. Director Barbre made a motion, seconded by Director Hernandez, to receive and file the Yorba Linda Water District Annual Comprehensive Financial Report, the Report on Internal Control, and the Communications Letter to Those Charged with Governance for the Fiscal Year Ended June 30, 2024. Motion carried 4-0-0-0. 10. ADJOURN TO FINANCING AUTHORITY AND PUBLIC FINANCING CORPORATION REGULAR MEETINGS The meeting was adjourned to the Financing Authority and Public Financing Corporation regular meetings at 8:46 a.m. The meeting was reconvened at 8:49 a.m. 11. DISCUSSION ITEMS 11.1. Request from Nick Diaz to Discuss the Timeframe and Approval Process for Design of Access Road Near Highland Reservoir Nick Diaz asked about the timeframe for producing the draft Terms and Conditions. Staff reviewed the process and noted that the draft document may be ready for review in January 2025. Staff will keep Mr. Diaz informed of the status. 11.2. Request from Manual Roman, M.D., to Discuss Issues Regarding Potential Easement with Homeowner Near Highland Reservoir Manual Roman, M.D., presented his concerns regarding the potential easement, associated costs to the District, and information he received from public records requests. Dr. Roman also expressed his concerns regarding District communications and community outreach efforts related to the proposed project, the potential for increased vehicle traffic on the access road, resident access to open the gate, and protecting the District against future liability. Dr. Roman further commented on easements associated with the project and proposed the construction of a driveway on the developer's property instead. Minutes of the YLW D Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 3 2024-118 Brief discussion followed regarding paving of the access road and the proposed construction of a retaining wall. Jon Hansen, representing the Yorba Linda Tax Payers Association, expressed his concerns regarding the potential for increased vehicle traffic on the access road and the associated costs and potential liability to the District. Staff confirmed that the intended purpose of the proposed project was to pave the road to maintain its condition, not to facilitate regular vehicle traffic, and that pedestrian and equestrian access would continue. Dr. Roman continued his comments regarding the potential easement and protecting the District against future liability. General Counsel Gagen confirmed prior Board direction to include language indemnifying and releasing the District against liability in recorded District easements granted to private parties. Staff confirmed that the draft Terms and Conditions for the proposed project would be presented for review at a future Board meeting and that review of the plans and preparation of the draft agreement may be completed in February 2025. Dr. Roman continued his comments regarding information he received from public records. Two residents commented on current vehicle traffic on the access road and spoke against the District granting property to the developer and against District expenditures associated with the proposed project. General Counsel Gagen clarified that the proposal was not for the District to grant property to the developer, but to grant an easement to the developer on District property. Mr. Diaz commented on communications with nearby property owners, planned improvements to his residential property, and his willingness to assume future liability associated with the proposed easement and improvements to the access road. Another resident commented on an existing easement. 12. CONSENT CALENDAR Director Barbre requested to remove Item Nos. 12.2. 12.8., 12.10., and 12.12. from the Consent Calendar for separate action. Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 4 2024-119 Director Hernandez made a motion, seconded by Director Barbre, to approve the remainder of the Consent Calendar. Motion carried 4-0-0-0. 12.1. Minutes of the Board of Directors Meeting Held September 12, 2024 Recommendation: That the Board of Directors approve the minutes as presented. 12.3. Cash and Investment Report for the Period Ended September 30, 2024 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the period ended September 30, 2024. 12.4. Unaudited Financial Statements for First Quarter of Fiscal Year 2024-25 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the First Quarter of Fiscal Year 2024-25. 12.5. Directors and General Manager Fees and Expenses Report for the First Quarter of Fiscal Year 2024-25 Recommendation: That the Board of Directors receive and file the Directors and General Manager Fees and Expenses Report for the First Quarter of Fiscal Year 2024-25. 12.6. Amending the Financial Reserves Policy for the Remainder of Fiscal Year 2024- 25 Recommendation: That the Board of Directors adopt Resolution No. 2024-XX amending the Financial Reserves Policy for the remainder of Fiscal Year 2024- 25 and rescinding Resolution No. 2024-14. 12.7. Purchase Order for Vactor Combination Sewer Cleaning Truck Recommendation: That the Board of Directors authorize the General Manager to issue a purchase order for a Vactor Combination Sewer Cleaning Truck from Haaker Equipment Company in the amount of $717,413 to be included in the Capital Outlay Budget for Fiscal Year 2025-26. 12.9. Award of Professional Services Agreement for Labor and Employment Legal Counsel Recommendation: That the Board of Directors authorize the General Manager to execute a Professional Services Agreement with Atkinson, Andelson, Loya, Ruud & Romo (AALRR) for the provision of labor and employment legal counsel services. Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 5 2024-120 12.11. Award of Construction Contract for Box Canyon 16-inch Waterline Improvements Project Recommendation: That the Board of Directors award the Construction Contract for the Box Canyon 16-inch Waterline Improvements to T.E. Roberts, Inc. for$782,646.48, Job No. J-2024-22. 12.12. Award of Construction Contract for FF-1 1 Waterline Replacement and Adobe Pressure Regulating Station Replacement Project Recommendation: That the Board of Directors award the construction contract for the FF-1 1 Waterline Replacement and Adobe Pressure Regulating Station Replacement Project to Dominguez General Engineering, Inc. for $1, 131,982.50, Job Nos. J-2024-14 and J-2024-21. 12.13. Terms and Conditions for Water and Sewer Service with SDI Real Property Investors, LLC for Tentative Parcel Map 2021-145 Recommendation: That the Board of Directors approve the Terms and Conditions for Water Service with SDI Real Property Investors, LLC for Tentative Parcel Map 2021-145, Hidden Hills Rd, Job Nos. J-2024-64 and J-2024-64S. ITEMS REMOVED FROM CONSENT CALENDAR FOR SEPARATE ACTION 12.2. Payments of Bills, Refunds, and Wire Transfers At the request of Director Barbre, staff reviewed the purpose of the Basin Equity Assessment paid to OCWD and associated savings to the District. Director Barbre made a motion, seconded by Director Lindsey, to ratify and authorize disbursements in the amount of $6,093,324.89. Motion carried 3-1-0-0 with Director Hernandez abstaining. 12.8. Award Professional Services Agreement with Resource Computer Solutions for Managed IT Services Director Barbre commended Senior Information Systems Administrator Hollinshead for her work associated with these services. Director Barbre made a motion, seconded by Director Lindsey, to authorize the General Manager to execute a Professional Services Agreement for Managed ITServices with Resource Computer Solutions for a term of three (3) years beginning November 15, 2024, through November 14, 2027, with a total not to exceed $924,846, and the option to extend the agreement for two (2) one-year periods, which would increase the total contract value accordingly. Motion carried 4-0-0-0. Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 6 2024-121 12.10. Award of On-Call Non-Professional Services Agreements for the Multiple Award Task Order Contract for Groundwater Well Repair and Rehabilitation Services Director Barbre requested staff provide a listing of the District's on-call contracts and associated expenditures. Director Barbre made a motion, seconded by Director Lindsey, to authorize the General Manager to execute three (3) non-exclusive Non-Professional Services Agreements for the Multiple Award Task Order Contract (MATOC) for Groundwater Well Repair and Rehabilitation Services with Best Drilling and Pump Inc., General Pump Company, and Southwest Pump & Drilling, Inc. for on initial period of three (3) years and cumulative total not to exceed of $2,000,000. Motion carried 4-0-0-0. 12.12. Award of Construction Contract for FF-11 Waterline Replacement and Adobe Pressure Regulating Station Replacement Project Staff responded to questions from Director Barbre regarding the Engineer's construction estimate and the proposed contractor for this project. Director Barbre made a motion, seconded by Director Lindsey, to award the construction contract for the FF-II Waterline Replacement and Adobe Pressure Regulating Station Replacement Project to Dominguez General Engineering, Inc. for$1,131,982.50, Job Nos. J-2024-14 and J-2024-21. Motion carried 4-0-0-0. 13. ACTION CALENDAR CONTINUED 13.1 Appointment of Active Director to Serve on the Orange County Sanitation District (OC San) Board of Directors Director Barbre made a motion, seconded by Director DesRoches, to appoint Director Lindsey as Active Director to serve on the OC San Board of Directors. Director Lindsey made a motion, seconded by Director Barbre, to appoint Director Hernandez as Alternate Director to serve on the OC San Board of Directors. Motions carried 4-0-0-0. Vice President Lindsey commented on his service as the previous Alternate Director and requested staff communicate the action taken regarding the new appointments to OC San. Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 7 2024-122 13.2. Association of California Water Agencies (ACWA) Proposed Amended and Restated Bylaws Discussion touched on the voting process and designation requirements. Director Barbre made a motion, seconded by Director Hernandez, to accept the proposed amended and restated ACWA bylaws and designate Director Lindsey as the authorized representative and Director Hernandez as the alternate authorized representative to vote on the District's behalf during the upcoming ACWA Membership Meeting. Discussion followed regarding proposed amendments associated with serving on the Election Committee. Motion carried 4-0-0-0. 13.3. California Special Districts Association (CSDA) Proposed Amended Bylaws Discussion touched on the voting process and proposed amendments. Director Barbre made a motion,seconded by Director Lindsey, to vote in favor of the proposed amendments to CSDA's bylaws and authorize staff to complete and submit the associated voting form as instructed. Motion carried 4-0-0-0. 14. DISCUSSION ITEMS CONTINUED 14.1. Capital Improvement Program (CIP) Project Status for Fiscal Year 2024-25 Staff reviewed the adopted and revised CIP projects, their status and expenditures, and responded to questions from the Board. 14.2. Review of Encroachments Policy Staff recommended no changes to the policy and responded to questions from the Board regarding enforcement and handling of violations. 14.3. Developing a Value Proposition for the YLWD This matter was deferred until the vacancy on the Board was filled. 14.4. Plaques for Rededication of District Facilities Director Hernandez asked about the practice of installing rededication plaques following improvements to District facilities. Discussion followed regarding historical dedication and rededication activities for various facilities Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 8 2024-123 and determining criteria for installing rededication plaques or whether to consider opportunities on a case by case basis. General Manager Toy suggested this subject could be addressed in the standard for facility architectural design to be presented for Board approval. 15. REPORTS, INFORMATION ITEMS, AND COMMENTS 15.1. Director's Reports Directors reported on topics discussed during recent meetings they attended. Discussion followed regarding the benefits of facility tours and tours to be scheduled. General Manager Toy was commended for the District hosted event for ACWA Region 10. 15.2. General Manager's Report General Manager Toy commended staff for their work supporting facility tours and multiple community outreach activities over the past month. President DesRoches requested staff provide an update regarding plans for the QR code project and metrics for those currently installed. General Manager Toy responded to questions regarding letters inviting the California Insurance Commissioner and Director of CAL OES for a tour of the District's heli-hydrant system. He confirmed that Townsend Public Affairs was involved with follow up efforts. 15.3. General Counsel's Report (None) 15.4. Future Agenda Items and Staff Tasks Vice President Lindsey asked for confirmation that an item would be placed on the agenda for the December 12, 2024 meeting to consider options for filling the vacancy on the Board. Discussion followed regarding whether this matter could be added to the agenda for consideration at this meeting and the timeline for taking action. After further discussion, the Board scheduled a special meeting on November 18, 2024 at 7:30 AM for this purpose (which was subsequently rescheduled to November 19, 2024 at the same time). 16. COMMITTEE REPORTS 16.1. Interagency Committee with MWDOC and OCWD DesRoches / Lindsey Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 9 2024-124 16.2. Joint Agency Committee with City of Yorba Linda Lindsey / DesRoches 16.3. Joint Agency Committee with City of Placentia Lindsey / Hernandez 16.4. Joint Agency Committee with City of Brea Barbre / Hernandez 16.5. Joint Agency Committee with Placentia-Yorba Linda Unified School District Hernandez/ Barbre 17. BOARD OF DIRECTORS ACTIVITY CALENDAR 17.1. Meetings from November 15- December 31, 2024 Director Barbre requested he be registered for the upcoming CRWUA conference. The Board meeting on December 26, 2024 was canceled. 18. CLOSED SESSION The Board entered Closed Session at 10:50 AM. Item No. 18.1. was previously removed from the agenda. 18.1. 9 Gnfe; Ee with Legal-C;GURsel- n+iGiPG+ed I i+irr+iGR S�ifi�TEXrSoro fG I ifinnfinn Di irci 1GAt fry Prrrr-rr FGph (2) or (3)of-S br-Iiyk (GI) Gf Cop-fien 54954 Q of fho QGlifnrr,i.v apdp- Ali PAIDer ref PGfonfinl C:G--6oc• Q-P, r'�'�-�-rr��r-rn�--crcrn-rcrrccr��.: 18.2. Conference with Legal Counsel- Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: Irvine Ranch Water District v. Orange County Water District, et al. (Los Angeles County Superior Court- Case No. BS168278) REPORT FROM CLOSED SESSION The Board returned from Closed Session at 1 1:55 AM. No reportable action was taken. 19. ADJOURNMENT 19.1. The meeting was adjourned at 1 1:55 AM. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held November 14,2024,at 8:30 AM. 10