HomeMy WebLinkAbout2008-10-30 - Board of Directors Meeting Minutes2008-173
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS WORKSHOP MEETING
October 30, 2008
The October 30, 2008 workshop meeting of the Yorba Linda Water District Board of
Directors was called to order by President Summerfield at 8:00 a.m. The meeting was
held at the District's offices at 1717 E. Miraloma Avenue, Placentia, CA.
DIRECTORS PRESENT AT ROLL CALL
John W. Summerfield, President
William R. Mills, Vice President
Michael J. Beverage
Ric Collett
STAFF PRESENT
Michael A. Payne, General Manager
Kenneth R. Vecchiarelli, Asst. G.M.
Lee Cory, Operations Manager
Diane Cyganik, Finance Director
Sandi Van Etten, Senior Accountant
Pat Grady, IT Director
Annie Alexander, Executive Secretary
DIRECTORS ABSENT AT ROLL CALL
Paul R. Armstrong
INTRODUCTION OF VISITORS AND PUBLIC COMMENTS
None.
DISCUSSION ITEMS
Assistant General Manager Vecchiarelli provided a PowerPoint presentation to the
Board regarding the following:
1. Summary Report of Budget to Actual Operating Costs for Fiscal Year 2007-2008
A summary report of the FY 2007/08 Water Operating Budget was reviewed.
Actual expenses for the fiscal year ended up being less than what was budgeted
by approximately $1.55M. However, the budget did not include enough revenue
to offset expenses resulting in a net operating loss of $700K before depreciation.
With depreciation, the loss then increased to $3.76M.
Mr. Brett Barbre, MWDOC Director, joined the meeting at 8:17 a.m.
Mr. Barbre addressed the Board and requested that a member of the Board
attend an ISDOC luncheon where an important vote was to take place.
Following discussion, President Summerfield instructed staff to prepare a letter to
authorize Assistant General Manager Vecchiarelli to attend the meeting and vote
on the Board's behalf.
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2. Summary Report and Status of the District's Water Operating Fund and Reserve
Funds
A summary report of the District's Water Operating Fund was reviewed. The
fund has been drawn down by $5.5M over the past 2 years and is continuing in a
negative trend. The District's future revenues and expenses could be seriously
impacted by the reduced availability and increasing costs of groundwater and
imported water and rising energy rates.
3. Consideration of Pass-Through Water Rate Increases in Accordance with
Adopted Resolution No. 07-17
Affects of the District's increased costs due to expected pass-throughs from
MWD, MWDOC, OCWD and SCE were reviewed. These added costs total
approximately $1.45M. The District would need to increase the water rate by
14.5 cents to cover these costs for FY 2008/09 (before depreciation).
4. Potential Effects of Conservation on Revenue
The possible effects of water conservation on revenue and expenses were
reviewed. The possibility of implementing a tiered rate structure was also
discussed.
5. Proposed Modification of the Monthly Service Charge
An example of how changes to the monthly service charge affect revenues was
discussed for future consideration by the Board.
ADJOURNMENT
On a motion by Director Beverage, seconded by Director Collett, the Board of Directors
voted to adjourn at 10:28 a.m. to a regular meeting of the Board of Directors scheduled
for November 12, 2008 at 8:30 a.m., at 1717 E. Miraloma Avenue, Placentia 92870.
f
enneth R. Vecchiarelli
Assistant Secretary
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