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HomeMy WebLinkAbout2025-07-10 - Board of Directors Meeting Minutes 2025-65 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, July 10, 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 Operations Manager Ojeda 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 Brianna De La Cruz, Public Affairs Specialist 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 General Manager Toy recognized Assistant General Manager Davert for 5 years of dedicated service and highlighted his work and accomplishments at the District. Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 1 2025-66 7.3. Legislative Update from Townsend Public Affairs Ben Goldeen, Federal Advocacy Director from Townsend Public Affairs, briefed the Board on federal and state legislative bills, and other legislative topics of interest to YLWD. He also reported that Congresswoman Kim had submitted a $1,443,600 funding request for the Well 23 project. Mr. Goldeen then responded to questions from the Board regarding various legislative bills. Director Barbre asked about discussing taking a position on the Delta Conveyance Project (DCP) trailer bill. General Manager Toy indicated that consideration of taking a position on other legislation of interest to the Board could be discussed at this meeting. President Lindsey noted that the Board would also be considering taking a position on 3 bills: AB 339, SB 394, and SB 454. General Manager Toy explained that due to time constraints, staff was unable to bring the DCP trailer bill before the Board for consideration at a previous meeting. He noted that the trailer bill was subsequently not adopted, and the final budget was deferred. He also explained that if the Board would like to take a position on the trailer bill in the future, direction could be given to staff at this meeting. Director Barbre emphasized the importance of the trailer bill, spoke in favor of supporting it, and suggested requesting support from the cities of Yorba Linda and Placentia and other Orange County agencies. President Lindsey asked Board members if they had enough information about the trailer bill to take a position at this time. There was consensus to add the item to the list of bills to be acted upon. Director Hernandez made a motion, seconded by Director Scott to take a position of opposition for AB 339 and a position of support for SB 394, SB 454, and the DCP trailer bill. Motion carried 5-0-0-0 on a roll call vote. Director Barbre inquired if the Board would be supportive of the District paying for his travel expenses to Sacramento to work with the State Water Contractors Association and other industry colleagues on the DCP trailer bill. Director Hernandez made a motion, seconded by Director Scott, to agendize consideration of Director Barbre's request for the District to pay for his travel expenses to Sacramento to work with the State Water Contractors Association and other industry colleagues on the DCP trailer bill. Motion carried 5-0-0-0 on a roll call vote. 7.4. Water and Sewer Rate Study Preliminary Financial Plan by Water Resources Economics Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 2 2025-67 Sanjay Guar, Founder/President, and Nancy Phan, Principal Consultant, from Water Resources Economics, provided an update on the rate study and reviewed the preliminary water and sewer financial plan scenarios. Discussion touched on growth and inflation assumptions, fixed and commodity expenses, potential state conservation mandates, MET and MWDOC rates, and reserve policy targets. Available grants, revenue requirements to maintain the Fitch AAA rating, and the proposed financial plans were also discussed. Staff also highlighted the addition of two sewer CIP projects. Discussion followed regarding building sewer reserves, next steps in the rate study schedule, and customer outreach. The meeting was recessed at 9:52 AM and reconvened at 10:00 AM. 8. PUBLIC COMMENTS (None) 9. CONSENT CALENDAR Director Barbre requested to remove Item Nos. 9.1. and 9.5. from the Consent Calendar for separate action. Director Hernandez made a motion, seconded by Director DesRoches, to approve the remainder of the Consent Calendar. Motion carried 5-0-0-0. 9.2. Budget to Actual Reports for the Month Ended May 31, 2025 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for the Month Ended May 31, 2025. 9.3. Cash and Investment Reports for the Month Ended May 31, 2025 Recommendation: That the Board of Directors receive and file the Cash and Investment Reports for the Month Ended May 31, 2025. 9.4. Purchase of RovverX CCTV Pipe Inspection Equipment Recommendation: That the Board of Directors approve the Purchase of the RovverX CCTV Pipe Inspection Equipment from Hacker through Sourcewell Cooperative Purchasing agreement. 9.6. Declaration of Restrictive Covenants at 16612 Loie Street with Kelly Ka Tang and King Chui Tang Recommendation: That the Board of Directors authorize the Board President and General Manager to execute a Declaration of Restrictive Covenants with Kelly Ka Tang and King Chui Tang at 16612 Loie Street. Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 3 2025-68 9.7. Terms and Conditions for Water and Sewer Service with Yorba Linda Altrudy II LP for Altrudy Senior Apartments Phase II Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Yorba Linda Altrudy II LP for Altrudy Senior Apartments Phase 11, 18611 Altrudy Lane, Job Nos.J-2025-1 1 and J-2025-1 IS. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 9.1. Payments of Bills, Refunds, and Wire Transfers Director Barbre inquired about two meals listed on the check register for President Lindsey and two other elected officials. President Lindsey stated that he would report on those business meetings. Director Barbre asked if the District had been charged for Attorney Kidman's participation at the April 24, 2025 Board and commented on Mr. Kidman's performance. He also stated that the Board previously discussed Board member review of invoices for legal services and whether the President and Vice President should conduct the review. General Counsel Gagen noted that the Board would need to take action to agendize consideration of this matter. Discussion ensued about the current process for reviewing invoices for legal services, the former Financial Review Group, and whether a review process should be reinstated. Directors Lindsey and Hernandez remarked on their observations related to the performance of Attorney Kidman at the noted meeting and requested that General Counsel Gagen share the comments expressed at this meeting with Mr. Kidman. Director Barbre made a motion, seconded by Director Hernandez, to agendize consideration of Board memberreview of invoices for legal services. Motion carried 4-1-0-0 on a roll call vote, with Director Lindsey voting No. Director Barbre made a motion, seconded by Director DesRoches, to ratify and authorize disbursements in the amount of $2,937,081.58. Motion carried 5-0-0-0 on a roll call vote. 9.5. Final Payment and Notice of Completion for FF-4, FF-7, and FF-12 Fire Flow Enhancement Project Director Barbre requested that agenda reports for projects include a line item indicating that General Counsel had reviewed and agreed with closing out the job. Discussion ensued about the current process for closing out projects, ensuring outstanding invoices were paid, potential for litigation, and General Counsel's responsibilities. General Manager Toy outlined the process and scope of responsibilities for closing out projects. Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 4 2025-69 Staff reviewed the bond process as it relates to closing out projects. Discussion ensued about the claims process and outstanding change orders. Director Barbre made a motion, seconded by Director Lindsey, to approve $320,502.17 final payment to the contractor, Big Ben, Inc., and authorize staff to file the Notice of Completion for the FF-4, FF-7, and FF-12 Fire Flow Enhancement Project, Job No. J-2024-26. Motion carried 5-0-0-0 on a roll call vote. Director Barbre made a motion, seconded by Director DesRoches, to agendize consideration of placing a line item on agenda reports for projects with bonds, indicating General Counsel's review and approval of payments and final documents prior to Board approval. Motion failed 2-3-0-0 on a roll call vote, with Directors Lindsey, Hernandez, and Scott voting No. 10. ACTION CALENDAR 10.1. California Special Districts Association (CSDA) Board of Directors Election Staff presented a brief overview of the item, noting that 3 candidates were listed on the ballot and the Board would need to vote for 1 candidate. Director Barbre made a motion, seconded by Director Hernandez, to vote for John Skerbelis in the 2025 CSDA Election for Seat B in the Southern Network for a 3-year term and instruct staff to complete and submit the ballot on the Board's behalf. Motion carried 5-0-0-0 one a roll cull 'voie. 10.2. Identification of Agency Designated Representative(s) for Labor Negotiations President Lindsey made a motion, seconded by Director DesRoches, to designate General Counsel Gagen as the representative for labor negotiations with the General Manager. Director Barbre noted that the District's current Labor Counsel could serve as the designated representative if desired. Motion carried 5-0-0-0 on a roll call vote. 10.3. District Procedures to Implement California Environmental Quality Act (CEQA) Staff presented a brief overview of the item and the District's responsibilities under CEQA. General Counsel Gagen stated that the District was required under the CEQA statute to either provide its own CEQA implementation procedures or adopt the CEQA guidelines as its implementation procedures. Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 5 2025-70 Director Hernandez made a motion, seconded by Director Scott, to adopt Resolution No. 2025-XX Adopting Procedures to Implement the California Environmental Quality Act (CEQA). Director Barbre inquired about recent updates to CEQA. General Counsel Gagen explained that updates were made to CEQA statutes and not implementation procedures. Motion carried 5-0-0-0 on a roll call vote. 10.4. Sewer System Management Plan Update Staff presented a brief overview of the item. Director Barbre made a motion, seconded by Director Scott, to adopt Resolution No. 2025-XX Adopting the Sewer System Management Plan update in accordance with the State Water Resources Control Board's Waste Discharge Requirements and rescind Resolution No. 2021-32. Director DesRoches requested that the annual report be distributed to the Board when filed. Staff will include this with the General Manager's report. Motion carried 5-0-0-0 on a roll call vote. 10.5. 2025 Public Health Goals Report President Lindsey opened the public hearing at 10:35 AM. Staff presented the 2025 Public Health Goals Report and responded to questions from the Board regarding various technical aspects. Director DesRoches suggested highlighting areas in the report where the District exceeded standards. No public comments were received, and the hearing was closed at 10:40 AM. Director DesRoches made a motion, seconded by Director Hernandez, to receive and file the 2025 Public Health Goals Report. Motion carried 5-0-0-0 on a roll call vote. 10.6. Collection of Capital (Finance) Charges and Delinquent Capital (Finance) Charges (CFC) on Fiscal Year 2025-26 Tax Roll President Lindsey opened the public hearing at 10:45 AM. Staff presented verification that the hearing had been properly noticed. Staff explained that as part of the Fiscal Year 2025-26 rates approved at the last Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 6 2025-71 Board meeting, the CFC's needed to be placed on the property fax roll for collection, which required a public hearing and Board approval. Staff also noted that this year, it was proposed to include delinquent charges from customers who were previously billed manually. Discussion followed regarding whether placing charges on the property tax roll for business tenants was appropriate, as the original intent was to bill the water user rather than the property owner.Staff explained that since 2022, all CFC's had been collected on the property tax bill paid by property owners rather than occupants. No public comments were received, and the hearing was closed at 10:55 AM Director Hernandez made a motion, seconded by Director DesRoches, to adopt Resolution No. 2025-XX electing to place Capital (Finance) Charges and Delinquent Capital (Finance) Charges on the property tax roll for collection and remittance to the District, adopting the report to place said charges on the property tax roll for Fiscal Year 2025-26, and repealing Resolution No. 2024-I5. Motion carried 5-0-0-0 on a roll call vote. 10.7. Collection of Certain Sewer Maintenance Charges on Fiscal Year 2025-26 Tax Roll President Lindsey opened the public hearing at 10:56 AM. Staff presented verification that the hearing had been properly noticed. Staff explained that adoption of the resolution allows the District to collect sewer maintenance charges for the Locke Ranch area and properties transferred from the City of Yorba Linda in 2011 via the property tax roll. Director Barbre inquired about the total dollar value and number of customers in the Locke Ranch area. He also questioned why some properties transferred in 2011 were still being billed on the tax roll rather than on their water bill, as he recalled this issue being addressed previously. No public comments were received, and the hearing was closed at 1 1:00 AM. Director Hernandez made a motion, seconded by Director Scott, to adopt Resolution No. 2025-XX electing to place Sewer Maintenance Charges on the property tax roll of certain properties for collection and remittance to the District, adopting the report to place said charges on the property tax roll for Fiscal Year 2025-26 and repealing Resolution No. 2024-16. Motion carried 5-0-0-0 on a roll call vote. 10.8 Water and Sewer Development and Customer Service Fees President Lindsey opened the public hearing at 1 1:01 AM. Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 7 2025-72 Staff explained that this was the second reading of the ordinance for water and sewer development and customer service fees,which would be effective in August 2025. Staff responded to questions regarding "callout after hours" and temporary untreated water connections. No public comments were received, and the hearing was closed at 1 1:02 AM. Director Barbre made a motion, seconded by Director Hernandez, to adopt, (1) Ordinance No. 2025-XX Adopting Water Development and Customer Service Fees; and (2) Ordinance No. 2025-XX Adopting Sewer Development and Customer Service Fees. Motion carried 5-0-0-0 on a roll call vote. 10.9 Next Steps for Septic to Sewer Due Diligence Memorandum General Manager Toy asked the Board to provide direction on next steps regarding the memorandum. Discussion followed regarding the memorandum's recommendations, the fiscal requirements for implementing a conversion program, and communicating to affected property owners regarding their obligations and options. It was suggested to survey property owners with septic systems to gauge their interest in connecting to the sewer system if a conversion program were available. Discussion continued regarding communication to customers about the costs for conversion and CFD options. Director Barbre made a motion, seconded by Director Scott, to agendize further discussion of the Septic to Sewer Due Diligence Memorandum and invite the consultant who prepared the report to provide a presentation. Motion carried 3-2-0-0 on a roll call vote, with Directors Hernandez and Lindsey voting No. 11. DISCUSSION ITEMS 11.1. Comprehensive Staffing Plan Staff presented an overview of the plan, which included regular review of staffing levels, staffing considerations and goals, recruitment and retention strategies, and employee development and performance management. Staff noted that the District was completing a comprehensive classification and compensation study with recommendations coming in the next few months. Staff responded to questions about turnover rates and exit interviews. 11.2. Organizational Climate General Manager Toy presented his report on the District's organizational climate and described his leadership philosophy through the acronym DRIVE (Develop, Recognize, Innovate, Value, Engage). He then summarized Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 8 2025-73 initiatives undertaken over the past year with support from the Employee Events Committee, Human Resources and Risk Management department, and staff. 12. REPORTS, INFORMATION ITEMS, AND COMMENTS 12.1. Director's Reports Directors provided brief updates on meetings attended and upcoming events. President Lindsey reported on his business lunch with Placentia Mayor Pro Tem Wanke, where they discussed sewer and water capabilities, and with MET/MWDOC Director Seckel to discuss rates and long-term plans. 12.2. General Manager's Report General Manager Toy highlighted various aspects included in his report. Director Barbre indicated his availability to lead infrastructure tours on August 19 and September 3, 2025. 12.3. General Counsel's Report (None) 12.4 Future Agenda Items and Staff Tasks Assistant General Manager Davert summarized future agenda items discussed during the meeting: ■ Director Barbre's request to travel to Sacramento for DCP trailer bill advocacy on behalf of the District. ■ Consideration of Board member review of invoices for legal services. ■ Continued discussion regarding the Septic to Sewer Due Diligence Memorandum and a presentation by the consultant. 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 Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 9 2025-74 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 July 11 -August 31, 2025 Director DesRoches requested assistance with covering the July 15, 2025 Yorba Linda City Council meeting. Director Scott offered to review the Brea City Council meeting agenda for any pressing items and potentially attend the Yorba Linda City Council meeting instead. 15. CLOSED SESSION The Board entered Closed Session at 12:20 PM. 15.1. 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: Mike Bubalo Construction Co., Inc./Pascal & Ludwig Constructors, Inc. v. Yorba Linda Water District (OCSC - Case No. 30-2025- 0 1 461247-C U-BC-CJ C) 15.2. Liability Claims Pursuant to Section 54956.95 of the California Government Code Claimants: Gene and Laura Ramos, Esther Enomoto, Debbie and John Alder, Larry and Judy Simms, Adam Preston, Valerie Vilardi, Michael H. Vis, Betty and Edmond Hui, David Chu, Charles and Shelli Clay, Jacob and Tiffany Dixon, Glen and Elena Chung and Salvador Amezcua Agency Claimed Against: Yorba Linda Water District 15.3. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 16. REPORT FROM CLOSED SESSION The Board returned from Closed Session at 1:15 PM. No reportable action was taken. Minutes of the YLW D Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 10 2025-75 17. ADJOURNMENT 17.1. The meeting was adjourned at 1:15 PM. Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held July 10,2025 at 8:30 AM 11 r 1 :i .ti � ti r :mE 9 11 �