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HomeMy WebLinkAbout2025-05-08 - Board of Directors Meeting Minutes 2025-41 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, May 8, 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 Board Secretary Alexander 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 Reza Afshar, Principal Engineer Annie Alexander, Board Secretary Kenny Graff, Senior Maintenance Worker Joanna Gonzalez, Public Affairs Officer Alex Ramirez, Safety Officer Anthony Varian, Senior Maintenance Worker Carole Wayman, Assistant Board Secretary ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA (None) 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. INTRODUCTIONS AND PRESENTATIONS 7.1 Elected Official Liaison Reports (None) 7.2 Employee Recognition Minutes of the YLWD Board of Directors Regular Meeting Held May 8,2025 at 8:30 AM 1 2025-42 General Manager Toy recognized the following employees: Employee of the Quarter: Anthony Varian, Senior Maintenance Worker Promotion: Kenny Graff to Senior Maintenance Worker President Lindsey congratulated both employees and emphasized the importance of their work. 8. PUBLIC COMMENTS (None) 9. CONSENT CALENDAR Director Barbre requested to remove Item No. 9.6. and Director DesRoches requested to remove Item No. 9.8. from the Consent Calendar for separate action. Director Barbre made a motion, seconded by Director Scott, to approve the remainder of the Consent Calendar. Motion carried 5-0-0-0 on a roll call vote. 9.1. Minutes of the Board of Directors Meetings Recommendation: That the Board of Directors approve the minutes as presented. 9.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$4,365,653.20. 9.3. Unaudited Financial Statements for Third Quarter of Fiscal Year 2024-25 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the Third Quarter of Fiscal Year 2024-25. 9.4. Cash and Investment Reports for the Quarter Ended March 31, 2025 Recommendation: That the Board of Directors receive and file the Cash and Investment Reports for the Quarter Ended March 31, 2025. 9.5. Directors and General Manager Fees and Expenses Report for the Third 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 Third Quarter of Fiscal Year 2024-25. Minutes of the YLWD Board of Directors Regular Meeting Held May 8,2025 at 8:30 AM 2 2025-43 9.7. Designating Authorized Agents for Management of Grant Award Recommendation: That the Board of Directors adopt Resolution No. 2025-XX designating authorized agents to execute for and on behalf of the District, any actions necessary for the purposes of managing the grant award received through the California Governor's Office of Emergency Services - State and Local Cybersecurity Grant Program for Local and Tribal Governments. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 9.6. Final Payment and Notice of Completion for Camino De Bryant Waterline Replacement Phase 2 Project Director Barbre inquired about any outstanding claims or invoices on the project, and staff and legal counsel confirmed there were none. Director Barbre made a motion, seconded by Director DesRoches, to approve $69,850.00 final payment to the contractor, Ramona, Inc., and authorize staff to file the Notice of Completion for the Camino De Bryant Waterline Replacement Phase 2 Project, Job No. J-2024-32. Motion carried 5-0-0-0 on a roll call vote. 9.8. 2024 Orange County Water and Wastewater Multi-Jurisdictional Hazard Mitigation Plan Director DesRoches suggested that the values identified in the hazard identification chart be representative of the Yorba Linda Water District's service area rather than the whole of Orange County. Director Barbre suggested the following revisions: ■ Update photos on cover to both feature YLWD facilities. ■ Consider categorizing "Human-Caused Hazards: Contamination/ Saltwater Intrusion" as "High" (pg. N-3). ■ Include City of Brea in list of cities (pg. N-18). ■ Include Anaheim Public Utilities in list of utility providers (pg. N-21). ■ Clarify full cost for Well 23 (pg. N-23). ■ Correct completion year for Fairmont Reservoir and note separate completion year for Fairmont Pump Station (pg. N-24). Director DesRoches made a motion, seconded by Director Barbre, to adopt Resolution No. 2025-XX adopting the 2024 Orange County Water and Wastewater Multi-Jurisdictional Hazard Mitigation Plan and rescinding Resolution No. 2019-26. Motion carried 5-0-0-0 on a roll call vote. Minutes of the YLWD Board of Directors Regular Meeting Held May 8,2025 at 8:30 AM 3 2025-44 10. DISCUSSION ITEMS 10.1. Water and Sewer Rate Study Kickoff by Water Resources Economics Sanjay Gaur, President of Water Resources Economics, presented an overview and scope of the upcoming water and sewer rate study. Key points included: ■ Proposition 218 (Prop 218) procedural requirements and Assembly Bill 2257 (AB 2257). ■ Rate study goals and scope of services such as development of a 5-year financial plan, performance of a cost-of-service analysis, and proposal of a 5-year rate schedule. ■ Schedule for Board meetings and public engagement activities. ■ Current rate structures. Mr. Gaur presented a list of policy objectives for the Board to rank. After discussion, the Board agreed on the following order of priorities: 1 . Enhance revenue stability to mitigate risk of decreasing water consumption and better align cost structure with cost recovery. 2. Enhance infrastructure reliability (with the suggestions to incorporate "capital improvement" and "water" in the wording). 3. Minimize impacts to customers. 4. Maintain affordability for essential indoor water use. 5. Improve ease of implementation and administration of rate structure. 6. Comply with legislation to make "Conservation a California Way of Life." Staff provided clarification of the structure of public engagement meetings. Discussion ensued about Citizen Advisory Committees, other types of public engagement meetings, and the number of meetings to be scheduled. Discussion followed regarding rate structure options, fixed and variable cost components, drought rates, and the purpose of the rate stabilization reserve fund. 11. ACTION CALENDAR 11.1. Updates to Rate Setting Process Under AB 2257 General Counsel Gagen presented an overview of AB 2257,which establishes a new process for ratepayer objections to proposed rates. He also reviewed the benefits and process for implementing AB 2257 in relation to Prop 218 notices and procedures. Minutes of the YLWD Board of Directors Regular Meeting Held May 8,2025 at 8:30 AM 4 2025-45 Director Barbre noted that YLWD was listed as a supporter of AB 2257 and asked when the Board took this action. Staff will research the matter and respond back to the Board. Discussion followed regarding rate challenges, the pros and cons of implementing AB 2257, and the statute of limitations for filing lawsuits. Director Hernandez made a motion, seconded by Director Scott, to adopt Resolution No. 2025-XX establishing a procedure for ratepayer objections to proposed water and sewer rates. Motion carried 3-2-0-0 with Directors Barbre and DesRoches voting No. The meeting was recessed at 10:28 AM and reconvened at 10:36 AM. 11.2. Financial Reserves Policy Staff presented a 5-year financial reserves plan, highlighting: ■ Long-range goals for maintaining financial stability and sustainability. ■ Six reserve categories and their purposes. ■ Annual updates to reserve target levels. ■ Integration with capital improvement planning and the rate study. ■ Plans to spend down 2022A bond proceeds by the end of July 2025. ■ Ongoing reporting and transparency efforts. Staff responded to questions regarding the percentage of labor costs associated with the spend down of bond proceeds, the employee liability reserve, and retiree medical obligations. The vote for this item was taken later in the meeting. 11.3. Communications Plan Staff presented a comprehensive communications plan, covering: ■ Alignment of communication goals and objectives with the strategic plan. ■ Branding guidelines and key messaging. ■ Stakeholder analysis and communication strategies. ■ Four key communication plan elements: social media, infrastructure education, first responder outreach, and facility tours. ■ Ongoing monitoring and adaptation of communication efforts. Discussion touched on branding identity and guidelines, key messages, and social media platforms. Minutes of the YLWD Board of Directors Regular Meeting Held May 8,2025 at 8:30 AM 5 2025-46 The Board provided input on potential improvements, such as increasing the number of facility tours, obtaining liability releases and permissions for photos and quotes from participants, and incorporating more customer testimonials in outreach materials. General Manager Toy requested the Board consider voting on Item No. 11.2. along with Item No. 11.3. Director Barbre made a motion, seconded by Director Hernandez, to approve the proposed five-year plan for defining a Financial Reserves Policy that targets sustainable rates, prioritizes Capital Improvement Program (CIP) needs, draws down bond funding for CIP projects, and assists with the preparation of the 2025 water and sewer rate study. Motion carried 5-0-0-0 on a roll call vote. Director Barbre made a motion,seconded by Director Hernandez, to approve the proposed Communications Plan, which includes social media guidance and goals, infrastructure information for public education, first responder outreach, and facility tour objectives. Motion carried 5-0-0-0 on a roll call vote. 12. REPORTS, INFORMATION ITEMS. AND COMMENTS 12.1. Director's Reports Directors provided brief. updates on meetings attended and upcoming events. 12.2. General Manager's Report General Manager Toy expressed appreciation to staff who prepared the Financial Reserves Policy and Communications Plan and highlighted the following: ■ Graduates from the recent supervisors academy. ■ Ongoing tours of the PFAS water treatment plant and heli-hydrants. ■ Community outreach efforts. • Cross-training initiatives in Operations. ■ Continued emphasis on communicating the value of water and infrastructure. Director DesRoches expressed her willingness to host additional infrastructure tours. Minutes of the YLWD Board of Directors Regular Meeting Held May 8,2025 at 8:30 AM 6 2025-47 12.3. General Counsel's Report General Counsel Andrew Gagen provided information regarding statutory immunities to protect Board members from liability in response to a question raised during a previous meeting. 12.4 Future Agenda Items and Staff Tasks Director Barbre requested an agenda item to discuss electric vehicle regulations and purchases, an updated 2-page summary document regarding Fitch Rating criteria that had been prepared for the Board in the past, and information on Fitch Ratings' request for comment on physical climate risk framework. Discussion followed regarding current actions being taken by YLWD to meet electric vehicle mandates. Director Barbre made a motion, seconded by Director Scott, to agendize a discussion of electric vehicle regulations and the cost impact to the District. Motion carried 5-0-0-0 on a roll call vote. 13. COMMITTEE REPORTS 13.1. Interagency Committee with MWDOC and OCWD DesRoches / Barbre 13.2. Joint Agency Committee with City of Yorba Linda Hernandez/ Barbre 13.3. Joint Agency Committee with City of Placentia Lindsey /Scott 13.4. Joint Agency Committee with City of Brea Barbre / Hernandez 13.5. Joint Agency Committee with Placentia-Yorba Linda Unified School District Hernandez/Scott 14. BOARD OF DIRECTORS ACTIVITY CALENDAR 14.1. Meetings from May 9 -June 30, 2025 15. CLOSED SESSION The Board entered Closed Session at 1 1 :50 a.m. Minutes of the YLWD Board of Directors Regular Meeting Held May 8,2025 at 8:30 AM 7 2025-48 15.1. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Mark Toy, General Manager, and Lori Thompson, Human Resources and Risk Manager Employee Organization: Yorba Linda Water District Employees Association 15.2. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Mark Toy, General Manager, and Lori Thompson, Human Resources and Risk Manager Unrepresented Employees: All Unrepresented Classifications 15.3. Conference with Legal Counsel-Anticipated Litigation Pursuant to Section 54956.9 of the Government Code- Paragraph (2) or (3) of Subdivision (d) Significant Exposure to Litigation: 1 Potential Case 16. REPORT FROM CLOSED SESSION The Board returned from Closed Session at 2:30 PM. No reportable action was taken. 17. ADJOURNMENT 17.1. The meeting was adjourned at 2:30 PM. Carole Wayman Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held May 8,2025 at 8:30 AM 8