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HomeMy WebLinkAbout2025-03-27 - Board of Directors Meeting Minutes 2025-26 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, March 27, 2025, 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 AM. 3. PLEDGE OF ALLEGIANCE Accounting Supervisor Phuong led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Tom Lindsey, President Mark Toy, General Manager Gene Hernandez, Vice President Doug Davert, Assistant General Manager Brett R. Barbre Christine Mcllrevey, Finance Manager Trudi DesRoches Freddie Ojeda, Operations Manager Wayne R. Scott Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Sophia Phuong, Accounting Supervisor Carole Wayman, Assistant Board Secretary ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA General Manager Toy noted that there was no longer a need for Closed Session. 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. PUBLIC COMMENTS (None) President Lindsey encouraged Board members to submit agenda questions to staff prior to the meeting. Minutes of the YLWD Board of Directors Regular Meeting Held March 27,2025 at 8:30 AM 1 2025-27 8. DISCUSSION ITEMS 8.1. Fiscal Year 2025-26 Budget Workshop #2 Staff noted that some aesthetic revisions had been made to the slide deck, but none of the numbers had changed. Staff summarized topics discussed during Budget Workshop #1 and explained that Budget Workshop #2 would focus on operating revenue and expenses, proposed rates, and customer and developer fees. Staff noted that expenses related to salaries and benefits would be presented to the Board in April. Discussion touched on the commodity rate and fixed expenses, proposed rates for water and sewer service, ensuring that the cost of service is met, and public outreach. General Manager Toy noted that a proposed communications plan and updates to the reserves policy would be presented to the Board in May. He also highlighted future public engagements and scheduled infrastructure tours. Discussion followed regarding the effect of the proposed rates on an average customer's bill, whether debt service charges were covered, and the capital finance charge. Topics also touched on assumptions in the 2021 rate study, fixed expenses, increased variable costs, and floating of the commodity rate. Discussion continued regarding increased costs for groundwater, imported water, and power, and the impacts of water conservation and inflation. Director Barbre requested that dollar amounts rather than percentages be provided in the variable cost slides. In addition, he also suggested that the "Capacity" and "Readiness to Serve" fees be relabeled as MET costs rather than MWDOC costs as these fees were pass-throughs from MET. There was discussion about the District's reserves and capital improvement program, changing the sequence of the budget workshop presentations to allow for a broader view of revenues before discussing expenses, and budgeting for election costs every year to create a reserve to cover future elections. Staff responded to questions about budgeting for election costs, differences between professional and contractual services, and membership dues. President Lindsey requested that a list of current memberships and associated dues be provided to the Board for review. General Manager Toy confirmed that a summary would be provided at the next Board meeting. Minutes of the YLWD Board of Directors Regular Meeting Held March 27,2025 at 8:30 AM 2 2025-28 There was discussion about insurance costs and claims, and whether an RFP for insurance coverage should be conducted. Staff responded to questions about the District's current insurance coverage and market factors that were driving the costs. Staff responded to questions about the increased contract costs related to the PFAS water treatment plant and the liability for the disposal of resin. Staff noted the benefits of shared contract costs with OCWD. Director DesRoches noted that materials costs were under budget at mid-year and asked if the cost could be spread out. Discussion followed as to whether maintenance and materials costs and some expenses could be deferred to future fiscal years. Director Barbre requested a breakdown of what was included in professional services, including what was budgeted versus expended. General Manager Toy confirmed this would be provided to the Board. Staff noted a decrease in professional services due to one-time service contracts. Staff responded to questions about uncollected accounts and highlighted the items to be presented at the next budget workshop on April 24, 2025. General Manager Toy noted the following items that would come back to the Board: 1) a calculation of the fixed costs and the break down between fixed and variable costs; 2) a one page summary of dollar amounts for variable costs; 3) a list of memberships and dues; 4) revision to slides to change data processing to information technology; and 5) revisions to the graphic showing the effects on an average customer's bill with and without the capital finance charge. 8.2. Fiscal Year 2025-26 Proposed Water & Sewer Customer and Developer Fees Staff reviewed the proposed water customer and developer fees and responded to questions about residential customer deposits, meter testing and connection fees, and filling stations in Yorba Linda. There was also discussion about costs for changing meter size and tampering penalties. Staff then reviewed the proposed sewer customer and developer fees, tampering penalties, deposits, capacity fees, and frontage charges. There was also discussion about the developer reimbursement program. Director Barbre requested a future agenda item to discuss AB 514. President Lindsey commented on a note he received from the family of Marcus Millen expressing gratitude to the Board. Minutes of the YLWD Board of Directors Regular Meeting Held March 27,2025 at 8:30 AM 3 2025-29 9. CLOSED SESSION (Not Held) �� QenTce--rreRGe-With LegGlrl GGURsel- EXiSfiRg I I+InrfiGR Geyernmonf ( ede G{le—e; GGse* Mike Bbele QGRSt,UGtiGR Ge InETPGSGGI leg GeRSn^Y-tGFS IRE V. 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