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HomeMy WebLinkAbout2025-09-11 - Board of Directors Meeting Minutes 2025-86 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, September 11, 2025, 7:00 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 7:00 AM. 3. PLEDGE OF ALLEGIANCE Assistant Board Secretary Carole Wayman led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Tom Lindsey, President Mark Toy, General Manager Gene Hernandez, Vice President (Arrived 7:02AM) Doug Dovert, Assistant General Manager Brett R. Barbre Christine Mcllrevey, Finance Manager Trudi DesRoches Freddie geda, Operations Manager Wayne R. Scott Lori Thompson, HR and Risk Manager Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer Annie Alexander, Board Secretary Briana De Lo Cn z, Public Affairs Specialist Rick DeAnda, Sr Field Customer Svc Rep Sophia Phong, Accounting Supervisor Eric Watson, Sr Facilities Maint 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. PUBLIC COMMENTS (None) 8. CLOSED SESSION - The Board entered Closed Session at 7:03 AM. Minutes of the YLWD Board of Directors Regular Meeting Held September 11,2025 at 7:00 AM 1 2025-87 8.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 8.2. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: Andrew Gagen, General Counsel Unrepresented Employee: General Manager 8.3. Conference with Legal Counsel - Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) or (3) of Subdivision (d) of Section 54956.9 of the California Government Code Number of Potential Cases: One 8.4. 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: Orange County Water District, et al. v. 3M Company, et al. (OCSC - Case No. 30-2020-01172419-CU-PL-CXC) 9. OPEN SESSION The Board returned from Closed Session at 8:35 AM. 10. REPORT FROM CLOSED SESSION General Counsel Gagen announced that no reportable action was taken. 11. PUBLIC COMMENTS CONTINUED (None) 12. INTRODUCTIONS AND PRESENTATIONS 12.1 Elected Official Liaison Reports (None) 12.2 Employee Recognition General Manager Toy and Engineering Manager Weston recognized Reza Afshar, Principal Engineer, for five (5) years of dedicated service. Then, General Manager Toy and Operations Manager Ojeda recognized Rick De Ando, Sr. Field Customer Service Representative, for 25 years of dedicated service, and Eric Watson, Sr. Facilities Maintenance Worker, forfive (5) years of dedicated service. President Lindsey announced that with the Board's approval, he wanted to take Item No. 14.1. out of order following Item No. 12.2. There were no objections. Minutes of the YLWD Board of Nectars Regular Meeting Held September 11,2025 at 7:00 AM 2 2025-BB The following item was taken out of order. 14. ACTION CALENDAR 14.1. Community Outreach for USA 250-Orange County (OC) Director Scott introduced Dr. Jo Ellen Chatham, co-chair of USA 250 Orange County. Dr. Chatham noted that California lacked state-level coordination for the celebration of the nation's 250th birthday in 2026, which led to the formation of the Orange County non-partisan organization last year. She outlined USA 250 OC's objectives and shared a list of participation ideas for the Board's consideration. Board members expressed unanimous interest in participating and requested that staff return with specific recommendations at a future meeting. 13. DISCUSSION ITEMS 13.1. Water and Sewer Rate Study Preliminary Rates by Water Resources Economics Sanjay Guar, Founder/President of Water Resources Economics, provided an overview of the rate study process and noted that this discussion would be focused on cost-of-service and rate design. Mr. Guar also reviewed changes to the proposed financial plan. Staff then presented an overview of the proposed Capital Improvement Program (CIP) and Capital Outlay through FY 2030-31 and highlighted changes from the last approval of the CIP in June 2025. Discussion followed regarding federal funding assumptions and impact on the CIP should they not be awarded. Staff noted that if this occurred, a revised CIP would be presented to the Board for approval. Mr. Guar then presented the proposed water financial plan and three (3) water rate scenarios for the Board's consideration. Discussion touched on placing all capital costs (CIP expenditures and debt service) on the property tax roll for increased stability. The Board also discussed customer impacts, revenue assumptions, the capital finance charge, and reserve policy targets. Mr. Guar then presented the proposed sewer financial plan and sewer rates. Staff responded to questions about updated salary cost allocations between the water and sewer services. There was Board consensus to continue discussion of the rate scenarios at a special meeting scheduled October 2, 2025. Minutes of the YLWD Board of Directors Regular Meeting Held sepierober 11,2025 at 7:00 AM 3 2025-89 President Lindsey left the meeting at 9:55 AM, and Vice President Hernandez then presided over the meeting. Discussion followed regarding the basis for Scenario 3 in the options presented for proposed water rates, setting a target level for debt coverage, and managing reserves. The meeting was recessed at 10:00 AM and reconvened at 10:07 AM. Discussion continued regarding which water rate scenario was most appropriate to meet the District's goals. Mr. Guar was requested to provide three (3) scenarios for discussion at the meeting on October 2, 2025: 1. All fixed cosh recovered on fixed charges; capital finance charges collect all CIP and debt service costs; and the capital finance charges broken out. 2. Increasing the current fixed charges to 47 percent of revenues; and increasing the capital finance charges by the 7.5%financial plan increase. 3. Increasing the current fixed charges to a percentage that falls between the first two scenarios; and capital finance charges collect all CIP and debt service costs. 14. ACTION CALENDAR CONTINUED 14.2. Fiscal Year 2025-26 Capital Improvement Program Update Staff briefed the Board on the proposed updates to the FY25-26 CIP and responded to questions from the Board regarding the reprioritized projects and the standardization of backup generators and emergency pump hookups at District facilities. Director Barbre made a motion, seconded by Director DesRoches, to adopt the Fiscal Year2025-26 Capital Improvement Program Update. Motion carried 4-0-0-1, with Director Lindsey absent. 15. CONSENT CALENDAR Director Barbre requested to remove Item Nos. 15.2., 15.3. and 15.4.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 4-0-0-1, with Director Lindsey absent. Minutes of the YLW D Boad Of DlrectON Regular Meeting Held September 11.2025 at 7:00 AM 4 2025-90 15.1. Minutes of the Board of Directors Meetings Recommendation: That the Board of Directors approve the minutes as presented. 15.5. Award of Multiple Award Task Order Contract for Geotechnical Services Recommendation: That the Board of Directors authorize the General Manager to execute three 13) non-exclusive Professional Services Agreements (PSAs) for the Multiple Award Task Order Contract (MATOC) for Geotechnical Services with Hushmand Associates, Inc., Verdontas, and Ninyo & Moore for an initial period of three (3) years and a Not to Exceed cumulative total of $350,000, subject to review and approval as to form by Legal Counsel. 15.6. Award of Non-Professional Services Task Order for Well 10 Rehabilitation Recommendation: That the Board of Directors authorize the General Manager to execute a Non-Professional Services Task Order for Well 10 Rehabilitation to General Pump Company for a total Not-To-Exceed amount of$300,000. 15.7. Final Payment and Notice of Completion for FY24-25 Fire Flow Enhancement at PYLUSD Schools Project Recommendation: That the Board of Directors approve $252,496.50 final payment to the contractor, J.A. Salazar Construction, and authorize staff to file the Notice of Completion for the FY24-25 Fire Flow Enhancement at PYLUSD Schools Project, Job No. J-2024-29. 15.8. Terms and Conditions for Water and Sewer Service with Olson Urban Housing, LLC for Tract 19385 Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Olson Urban Housing, LLC for Tract 19385, 4861 Liverpool St., Job Nos. J-2025-14 and J-2025-14S. 15.9. Notice of Exemption for Well 10 Rehabilitation Project Recommendation, That the Board of Directors consent to filing a Notice of Exemption (NOE) with the Orange County Clerk Recorder's office for the Well 10 Rehabilitation Project, Job No. J-2025-35. 15.10. Notice of Exemption for Well 18 Rehabilitation Project Recommendation: That the Board of Directors consent to filing a Notice of Exemption (NOE) with the Orange County Clerk Recorder's office for the Well 18 Rehabilitation Project, Job No. J-2025,34. Mlnutes of the YLWD Board of Directors Regular Meefing Held September 11,2025 at 7:OD AM 5 2025-91 ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 15.2. Payments of Bills, Refunds, and Wire Transfers Staff responded to questions from Director Barbre regarding payment for a temporary easement near Timber Ridge Booster Pump Station.Staff explained that it was related to material storage on an adjacent parcel and that the project contractor, Pacific Hydrotech, was contributing to the expense. Staff also responded to questions regarding payment for a delayed invoice for sponsorship of an ACWA/AWWA event, and the cost differences for van rentals for facility tours. Director Barbre made a motion, seconded by Director Scott, to ratify and authorize disbursements in the amount of $3,495,907. 19. Motion carried 4-0-0-1, with Director Lindsey absent. 15.3. Cash and Investment Reports for the Month Ended July 31, 2025 Director Barbre inquired about a discrepancy in the percent yield calculations for two investment accounts. Staff indicated that it may be a formula issue, which would be examined. Director Barbre made a motion, seconded by Director DesRoches, to receive and file the Cash and Investment Reports for the Month Ended July 31, 2025. Motion carried 4-0-0-1 unanimously, with Director Lindsey absent. 15.4. Fiscal Year 2025-26 Budget Adjustment Director Barbre noted that his question about the salary related expenses had already been answered. Director Barbre made a motion, seconded by Director Scott, to approve a budget adjustment in the Fiscal Year 2025-26 Operating Budget to reallocate $1,574,558 in salary related expenses from the Wafer Fund to the Sewer Fund, with no impact on the overall salaries budget. Motion carried 4-0-0-1, with Director Lindsey absent. 16. ACTION CALENDAR CONTINUED 16.1. Award of Non-Professional Services Task Order for Well 18 Rehabilitation Director Barbre made a motion, seconded by Director DesRoches, to authorize staff to execute a Non-Professional Services Task Order for Well 18 Rehabilitation to Best Drilling and Pump for a total Not-to-Exceed $375,000. Motion carried 4-0-0-1, with Director Lindsey absent. M6mfes of the YLWD Board of Directors Regular Meeting Held September 11,2025 at 7:00 AM 6 2025-92 16.2. Position on California Proposition 50 There was discussion about proposed changes to congressional district maps. It was noted that the Yorba Linda City Council had already opposed the measure. Director Barbre made a motion, seconded by Director Scott, to adopt Resolution No. 2025-XX opposing Proposition 50 on the November 2025 Ballot. Motion carried 4-0-0-1 on a roll call vote, with Director Lindsey absent. 17. REPORTS, INFORMATION ITEMS, AND COMMENTS 17.1. Director's Reports Directors provided brief updates on meetings attended and upcoming events. Discussion touched on the financial impact should the USACE require OCW D's water conservation storage program to be suspended for several years while the spillway at Prodo Dam is raised. Staff noted that this proposition had been suspended while an altemative solution was identified. 17.2. General Manager's Report General Manager Toy highlighted various aspects included in his report. Director Barbre requested a copy of the questions on the trivia wheel that is used at public events. He also suggested that photos and video footage of the District's heli-hydrants be included in YLWD's presentation materials forthe upcoming Wildfire Preparedness Community meeting. 17.3. General Counsel's Report (None) 17.4. Future Agenda Items and Staff Tasks Vice President Hernandez noted that consideration of outreach activities for USA 250-OC would be coming back to the Board at a future meeting. Director DesRoches proposed revisiting the establishment of committees for financial and CIP review. Discussion followed regarding the former financial and CIP review groups, Brown Act requirements for committees, and staff support. General Counsel Gagen recommended agendizing the item. Director DesRoches made a motion, seconded by Director Barbre, to agendize consideration ofreinstating committees. Motion corried3-1-0-1 with Director Hernandez voting No, and President Lindsey absent. Minutes of the nWD Board of Directors Regular Meeting Held September 11,2025 at 7.00 AM 7 2025-93 18. COMMITTEE REPORTS 18.1. Interagency Committee with MWDOC and OCW D DesRoches / Barbre 18.2. Joint Agency Committee with City of Yorba Linda Hernandez/ Barbre 18.3. Joint Agency Committee with City of Placentia Lindsey /Scott 18.4. Joint Agency Committee with City of Brea Barbre / Hernandez 18.5. Joint Agency Committee with Placentia-Yorba Linda Unified School District Hernandez/Scott 19. BOARD OF DIRECTORS ACTIVITY CALENDAR 19.1. Meetings from September 12-October 31, 2025 It was noted that the September 25, 2025 Board meeting was cancelled. 20. ADJOURNMENT 20.1. The meeting was adjourned at 11:00 AM. AM Carole Wayman Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held September 11,2025 at 7:00 AM 8