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HomeMy WebLinkAbout2025-10-02 - Board of Directors Meeting Minutes 2025-94 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, October 2, 2025, 8:00 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 8:00 AM. 3. PLEDGE OF ALLEGIANCE Director DesRoches 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 Joanna Gonzalez, Public Affairs Officer Sophia Phuong, Accounting Supervisor Carole Wayman, Assistant Board Secretary ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. AB 2449 TELECONFERENCE REQUESTS (None) 6. PUBLIC COMMENTS (None) 7. CLOSED SESSION The Board entered Closed Session at 8:03 AM. 7.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 7.2. 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 Mhutes of the YLWD Board of Directors Special Meeting Held October 2,2D25 at B:DD AM t 2025-95 B. OPEN SESSION The Board returned from Closed Session at 9:36 AM. 9. REPORT FROM CLOSED SESSION General Counsel Gagen announced that no reportable action was taken. 10. PUBLIC COMMENTS CONTINUED Al Nederhood,resident, commented on his concerns regarding the District's last rate study and urged caution in the current rate study process. 11. DISCUSSION ITEMS 11.1. Water and Sewer Rate Study Preliminary Rate Scenarios by Water Resources Economics Sanjay Gaur, President of Water Resources Economics, provided an overview of the rate study process and methodology,which included the development of a financial plan, cost of service analysis, rate design, and rate adoption. Mr. Gaur then presented the proposed water financial plan. Discussion touched on the days of cash on hand, debt coverage ratio, reserves, and the cost of service versus revenue structure. Three water rate scenarios were then presented. Extensive discussion followed regarding the financial impact of each scenario on customers with different water usage levels and charges being collected on the property tax bill. Mr. Gaur then presented the proposed sewer financial plan and rates. Discussion followed regarding next steps in preparation for the water and sewer rate study presentation scheduled for the first Board meeting in November. Director Barbre made a motion, seconded by Director Scoff, to direct staff to prepare final numbers based on 7.5% water revenue and 9.5%sewer revenue adjustments, adding that the specific water rate scenario would be determined at the November 13, 2025 Board meeting. Motion carried 5-0-". The Board then requested additional information for that some meeting, including: • Monthly water bill impacts for each rate scenario, identifying the dollar amounts for the monthly bill charge and the annual capital finance charge, with the latter broken out by debt service and capital improvements. Minutes of the YLW D Board at Directors Special Meeting Held October 2,2825 al 8.M AM 2 2025-96 • Projections of how long it would take under each water rate scenario to reach ideal alignment for the recovery of 100% fixed costs with fixed revenue. • Year 2 monthly water bill impacts for each rate scenario to better understand the long-term effects. • Strategies for communicating rate adjustments to the public. 12. ADJOURNMENT 12.1. The meeting was adjourned at 11:20 AM. = — Carole Wayman Assistant Board Secretary Minutes of the YLW D Board of Directors Special Meeting Held October 2,2025 at 8:00 AM 3