HomeMy WebLinkAbout2014-11-26 - Resolution No. 14-17RESOLUTION NO. 14 -17
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING A POLICY ON THE DISPOSITION OF REFUNDS FROM OUTSIDE
AGENCIES AND RESCINDING RESOLUTION NO. 08 -01
WHEREAS, the Board of Directors of the Yorba Linda Water District has, from time to
time, received refunds from water agencies such as the Metropolitan
Water District of Southern California and the Municipal Water District of
Orange County; and
WHEREAS, the Board of Directors has considered many options on the disposition of
these refunds including: (1) an immediate return to District customers in
the form of a refund, (2) a one -time refund to each currently active
account; (3) a reduction in the water rate for the next twelve months; (4) a
reduction in the water rate for just the summer months, (5) a return of the
funds to the issuing agency with a request that those funds be applied to
offset future invoices; and (6) deposit of the funds directly into the water
operating fund account; and
WHEREAS, the Board of Directors has decided in the past that the fairest, quickest
and least expensive method was to issue a one -time refund credit to each
active account excluding fire detector check accounts at the time of the
refund; and
WHEREAS, the Board of Directors desires to further clarify the method used to pass
through these types of refunds to District customers.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District that when the District receives a refund from the Metropolitan Water
District of Southern California, the Municipal Water District of Orange County, the
Orange County Water District, Southern California Edison Company or The Gas
Company, the refund shall be handled as follows:
Section 1. If the refund is in excess of $75,000, then the refund shall be passed
through to the District's customers by taking the total amount of the refund
divided by the total number of active water accounts, excluding the fire
detector check accounts, and applying the refund as a one -time credit on
a date to be determined by the General Manager.
Section 2. If the refund is less than or equal to $75,000, then the refund shall be
credited against the appropriate operating general ledger expense
account as determined by the General Manager.
Section 3. That Resolution No. 08 -01 is hereby rescinded.
Resolution No. 14 -17 Adopting a Policy on the Disposition of Refunds from Outside Agencies
Section 4. That Resolution No. 14 -17 becomes effective immediately upon adoption
by the Board of Directors.
PASSED AND ADOPTED this 26th day of November 2014, by the following called vote:
AYES: Directors Beverage, Collett, Hawkins, Kiley and Melton
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST:
Marc Marcantonio, Board Secretary
Yorba Linda Water District
Reviewed as
Arthu�,G'Kdman, Esq.
Kidman Law LLP
Legal Counsel:
Robe R. Kiley, President
Yorba Linda Water District
Resolution No. 14 -17 Adopting a Policy on the Disposition of Refunds from Outside Agencies 2