Loading...
HomeMy WebLinkAbout2015-07-23 - Board of Directors Meeting Minutes 2015-122 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, July 23, 2015, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The July 23, 2015 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Collett at 8:30 a.m. The meeting was held in the Board Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. PLEDGE OF ALLEGIANCE President Collett led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Ric Collett, President Marc Marcantonio, General Manager Michael J. Beverage, Vice President Steve Conklin, Engineering Manager Phil Hawkins Javier Martinez, Water Production Superintendent Robert R. Kiley Amelia Cloonan, Human Resources Analyst Gary T. Melton Delia Lugo, Finance Manager Damon Micalizzi, Public Information Manager Robyn Shaw, Programmer Analyst Annie Alexander, Executive Secretary Bryan Melton, Human Resources Analyst Cindy Botts, Water Conservation Supervisor ALSO PRESENT Art Kidman, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Tom Lindsey, Mayor Pro Tem, City of Yorba Linda Chris Townsend, President, Townsend Public Affairs Cori Williams, Senior Associate, Townsend Public Affairs Mark Feldstein, Representative of the Pool Industry Eddy Jackson, Resident Denisse Salazar, Reporter, Orange County Register 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Marcantonio requested that in addition to considering the resolution associated with Item No. 7.4., that the Board consider authorizing the General Manager to execute an agreement with the County of Orange for the collection of special taxes, fees, charges, and assessments. A copy of the agreement was Minutes of the YLWD Board of Directors Regular Meeting Held July 23, 2015 at 8:30 a.m. 1 2015-123 provided in the agenda packet, located directly behind the resolution. Mr. Marcantonio also noted that the resolutions associated with Item Nos. 7.5. and 7.6. had been slightly revised in order to clarify the proposed amendments. Copies of the revised resolutions were provided to the Board and made available to the public prior to the meeting. President Collett stated that a request had been made to move the Closed Session (Item No. 13.1) immediately following Public Comments (Item No. 5) in order to accommodate the attendance of legal counsel. 5. PUBLIC COMMENTS President Collett stated that some misinformation had been published in a local newspaper and on several blogs indicating that the Board would be considering the approval of water and sewer rates at this meeting which is incorrect. The action being considered by the Board is to authorize staff to mail a notice of the proposed changes to the water and sewer rates and schedule an associated public hearing in September. No other comments were provided at this time. The following item was taken out of order. 13. CLOSED SESSION The meeting was adjourned to Closed Session at 8:33 a.m. All Directors were present. Also present were Mr. Marcantonio, Mr. Kidman and Ms. Cloonan. 13.1. Conference with Legal Counsel - Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Related to potential claim submitted on behalf of Stephen Wight. Number of Potential Cases: One The Board reconvened in Open Session at 8:41 a.m. Mr. Kidman reported that the Board had voted unanimously to reject the potential claim submitted on behalf of Stephen Wright and refer the matter to the District's insurance carrier (ACWA/J PIA). Minutes of the YLWD Board of Directors Regular Meeting Held July 23,2015 at 8:30 a.m. 2 2015-124 6. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Kiley, to approve the Consent Calendar. Motion carried 5-0. 6.1. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$1,382,307.13. 7. ACTION CALENDAR 7.1. Annual Lump Sum Prepayment to CaIPERS for the Unfunded Accrued Liability (UAL) Director Barbre addressed the Board and stated that he was in favor of prepaying this liability. Mrs. Lugo explained that the District is a Pooled Participant in the California Public Employee's Retirement System (CaIPERS). For FY 2015/16, CaIPERS is requiring that participating pooled business partners pay the UAL on a monthly "pay-as-you-go" basis or as an annual lump sum prepayment. Submitting a lump sum prepayment will result in an annual cost savings of $7,605 for the District. Director Beverage made a motion, seconded by Director Kiley, to authorize staff to pay the annual lump sum prepayment to California Public Employee's Retirement System as budgeted for the Retirement Benefit Unfunded Accrued Liability (UAL) in the amount of $206,619. Motion carried 5-0. 7.2. OPEB Deposit with CERBT Mrs. Lugo explained that the District budgeted Annual Required Contribution (ARC) for Other Post-Employment Benefits (OPEB) for FY 2015/16 is $197,742. The actuarially projected OPEB "pay-as-you-go" expenses for FY 2015/16 are $149,358. Staff is proposing that the District pre-fund the California Employees Retirement Benefit (CERBT) with the entire ARC amount. By doing so, the District can submit for reimbursement of actual retiree costs at the end of the fiscal year and take advantage of CERBT's investment rate of return of 7.61%. Director Kiley made a motion, seconded by Director Beverage, to authorize staff to deposit $197,742 (the District's Annual Required Contribution) to the California Employee's Retirement Benefit Trust (CERBT) for FY 2015/16. Minutes of the YLWD Board of Directors Regular Meeting Held July 23,2015 at 8:30 a.m. 3 2015-125 Director Barbre addressed the Board and commented on the benefits of reducing OPEB liabilities. Motion carried 5-0. 7.3. Notice of Proposed Water and Sewer Rate Increase and Schedule a Public Hearing Mr. Marcantonio explained that during the budget process, staff recognized that the State's Emergency Drought Declaration and the associated water conservation mandates would require a change in the District's current business model in order to meet annual operational costs. Historically, the District has relied on revenue generated from volumetric water usage to meet a larger portion of its operating expenses. With the current conservation requirements, a shift of revenue reliance on the Basic Monthly Service charge (or base fee) is needed. As such, staff has proposed a water and sewer rate increase for the next 5 fiscal years. In order to proceed, a notice regarding the proposed rate increase and the associated public hearing will need to be mailed. Mr. Eddy Jackson, resident, addressed the Board and displayed a spreadsheet he had compiled comparing local agency costs for water service. He commented on the impact of the State's conservation mandate on the District's financial condition and stated that the proposed rate increase was a progressive tax that would disproportionately affect the community's middle class families and seniors. He also suggested that the Board consider returning to semi-monthly billing and implementing a tiered rate structure. He then asked if the District would accept an online petition as a written protest against the proposed rate increase. Mr. Kidman stated that legal counsel would look into Mr. Jackson's inquiry regarding the validity of an online petition and get back to him. Staff then responded to questions from the Board regarding recent revisions to the notice, associated FAQ's, and timeline for mailing. Director Hawkins requested that staff prepare a rate comparison graph listing all surrounding cities for the public hearing. Directors Collett and Beverage then commented on the complexities involved with comparing special district and city agency rates for water/sewer service. Minutes of the YLWD Board of Directors Regular Meeting Held July 23, 2015 at 8:30 a.m. 4 2015-126 Director Beverage made a motion, seconded by Director Melton, to authorize staff to mail a Notice of Proposed Water and Sewer Rate Increase to the District's customers notifying them of proposed changes to their water and sewer rate for the upcoming five fiscal years and schedule a Public Hearing on September 17, 2015 at 6:30 p.m. Motion carried 5-0. 7.4. Sewer Charges Collected on the Tax Roll for Fiscal Year 2015/16 Mr. Marcantonio explained that at the beginning of each fiscal year, the Board considers collecting sewer maintenance charges on the County property tax roll for customers connected to the District's sewer system that don't also receive water service or a water bill from the District. Residents of the Locke Ranch area do not receive water service from the District, so their sewer charges are collected on the tax roll. Furthermore, due to the disparity in sewer maintenance charges between the City of Yorba Linda and the District, it has been determined that classifications with rate differences need to be placed on the tax roll for collection until a Proposition 218 process can be completed. To move forward with this process, the Board will need to adopt a resolution directing the County to add these charges to the tax roll and authorize the General Manager to execute an agreement with the County for their collection. Director Barbre addressed the Board and noted that the resolution being presented for consideration listed the Orange County Auditor/Controller as the office being authorized to collect these charges. He stated that collection of these charges was actually performed by the Orange County Treasurer-Tax Collector. Staff then responded to questions from the Board regarding the difference between the sewer maintenance charges being collected and the charges proposed as part of the Proposition 218 process. President Collett requested that the resolution be revised to reflect the correct office performing the collection services. Director Beverage made a motion, seconded by Director Melton, to adopt Resolution No. 15-17 as revised, Electing to Have Certain Sewer Maintenance Charges Collected on the FY 2015/16 Tax Roll and Superseding Resolution No. 14-10 and authorize the General Manager to execute an agreement with the County of Orange for the collection of special taxes, fees, charges, and assessments. Motion carried 5-0 on a Roll Call vote. 7.5. Clarify the Salaries, Benefits and Special Conditions Agreed upon between the District and Employees of the Yorba Linda Water District Employees Association for the Remainder of Fiscal Years 2015-2018 Minutes of the YLWD Board of Directors Regular Meeting Held July 23, 2015 at 8:30 a.m. 5 2015-127 Mr. Bryan Melton explained that the Board had previously adopted the Memorandum of Understanding (MOU) between the District and the YLWD Employees Association for FYs 2015/18. The Board then subsequently adopted the Budgeted Positions for FY 2015/16 which included the newly created position of Public Affairs Representative. The nature of this position does not qualify it to be placed in the Supervisory and Confidential or Management Employees' Groups and should therefore be represented by the YLWD Employees Association. As such, the MOU requires modification to reflect that change. Modification is also required in Section 13.1 (Safety Boot Allowance) of the MOU to allow employees to purchase more than one pair of safety footwear, provided that it does not exceed the annual $200 allowance. Additionally, the holiday schedule for FYs 2015/18 requires modification to reflect the actual dates observed for Memorial Day in 2016 and 2017. Mr. Bryan Melton then responded to questions from the Board regarding the proposed revisions. Director Beverage made a motion, seconded by Director Hawkins, to approve Resolution No. 15-18 as revised, Amending Resolution No. 15-06 to Modify and Further Clarify the Salaries, Benefits and Special Conditions Agreed upon between the District and Employees of the Yorba Linda Water District Employees Association for the Remainder of Fiscal Years 2015-2018. Motion carried 5-0 on a Roll Call vote. 7.6. Clarify the Salaries, Benefits and Special Conditions Offered by the District to Supervisory and Confidential Employees for the Remainder of Fiscal Years 2015-2018 Mr. Bryan Melton explained that the Board had previously adopted the Supervisory and Confidential Employees Compensation Letter for FYs 2015/18. The Board then subsequently adopted the Budgeted Positions for FY 2015/16 which included the newly created position of Records Management Administrator and Water Conservation Supervisor. As such, the Compensation Letter for this employee group requires modification to reflect these changes. Modification is also required to clarify the certificate reimbursement benefits offered and correct the holiday schedule. Additionally, staff is requesting that the name of this group be identified as "Professional and Confidential Employees" from this point forward in order to more accurately reflect the positions contained within. Mr. Marcantonio then responded to questions from the Board regarding the proposed revisions and the use of drought penalties to fund the salary of the Water Conservation Supervisor position. Minutes of the YLWD Board of Directors Regular Meeting Held July 23,2015 at 8:30 a.m. 6 2015-128 Director Kiley made a motion, seconded by Director Hawkins, to approve Resolution No. 15-19 as revised, Amending Resolution No. 15-07 to Modify and Further Clarify the Salaries, Benefits and Special Conditions by the District to Professional and Confidential Employees (formerly Supervisory and Confidential Employees) for the Remainder of Fiscal Years 2015-2018. Motion carried 5-0 on a Roll Call vote. 7.7. Clarify the Salaries, Benefits and Special Conditions Offered by the District to Management Employees for the Remainder of Fiscal Years 2015-2018 Mr. Bryan Melton explained that the Board had previously adopted the Management Employees Compensation Letter for FYs 2015/18 in which the Public Information Manager position was identified at a Range 33. In order to reflect the additional responsibilities of water conservation, communications, and legislation, the range for this position is being placed at 37. As such, the Compensation Letter for this employee group requires modification to reflect this change. Modification is also required to correct the holiday schedule. Mr. Bryan Melton then responded to questions from the Board regarding the monetary difference in the salary ranges, the last time a change to the range for this position had been made, and the duties assigned. Director Beverage commented on the importance of this position to the District and a previous proposal to change the range for this position which was discussed during the budget process. Director Kiley commented on the issues currently facing the District and the importance of this position. Mr. Marcantonio then responded to questions from the Board regarding staff's recommendation and management of the approved budget for employee salaries and benefits. Director Kiley made a motion, seconded by Director Hawkins, to approve Resolution No. 15-20 Amending Resolution No. 15-08 to Modify and Further Clarify the Salaries, Benefits and Special Conditions Offered by the District to Management Employees for the Remainder of Fiscal Years 2015-2018. Motion carried 3-2 on a Roll Call vote with Directors Beverage and Melton voting No. Mr. Bryan Melton left the meeting at this time. Minutes of the YLWD Board of Directors Regular Meeting Held July 23,2015 at 8:30 a.m. 7 2015-129 8. DISCUSSION ITEMS 8.1. Potential Amendments to Ordinance No. 09-01 Instituting Water Conservation Measures, Prohibition Against Water Waste and Water Shortage Supply Contingencies President Collett explained that this item had been placed on the agenda so that the Board could provide comments to staff regarding potential revisions to the Ordinance. Director Hawkins suggested that the District compare its ordinance to those of other nearby agencies for the purposes of consistency. Mr. Marcantonio asked Mrs. Botts to provide the Board with an overview of the State's efforts to develop a model water efficient landscape ordinance. Director Hawkins then suggested that the Board consider waiting until October to address revising the Ordinance. Following further discussion, the Board agreed. Proposed amendments will be provided to staff in advance. Mr. Kidman commented on the need for the District to remain flexible and fair in its application of the water conservation and drought penalty ordinances. Mayor Pro Tem Lindsey addressed the Board and commented on the potential degeneration of property values in the community due to the State's water conservation mandate. Mr. Mark Feldstein addressed the Board and commented on water savings associated with maintaining a pool versus turf. He also commented on the effects of the drought on the pool industry throughout the state. Mr. Kidman left the meeting at this time. 8.2. Potential Amendments to Ordinance No. 15-01 Instituting Drought Penalties to Comply with State of California Mandate Discussion of this matter was deferred until October. Minutes of the YLWD Board of Directors Regular Meeting Held July 23, 2015 at 8:30 a.m. 8 2015-130 8.3. "Communication with Those Charged with Governance" Letter Mrs. Lugo explained that the District had engaged White Nelson Diehl Evans LLP to audit the financial statements for the year ended June 30, 2015. At their request, staff is providing a copy of the "Communication with Those Charged with Governance" to the Board for review and future reference. This letter is issued during the planning phase of the audit as it provides pertinent information related to the responsibilities of the auditing firm during the audit process. 8.4. Status of Legislative Affairs Mr. Chris Townsend introduced Ms. Cori Williams who then provided an overview of various legislative activities. Mr. Townsend then responded to questions from the Board regarding potential grant funding opportunities. 9. REPORTS, INFORMATION ITEMS, AND COMMENTS 9.1. President's Report None. 9.2. Directors' Reports • Weymouth Water Treatment Plant Inspection Trip - July 17, 2015 Directors Collett and Hawkins reported on their attendance at the above listed event. 9.3. General Manager's Report Mr. Marcantonio asked each manager (or their designee) in attendance to provide a report regarding activities within their respective departments. He then provided the Board with an overview of his activities and meeting attendance. Director Kiley left the meeting at this time. Mr. Micalizzi introduced Ms. Denisse Salazar, reporter for the Orange County Register. 9.4. General Counsel's Report None. 9.5. Future Agenda Items and Staff Tasks None. Minutes of the YLWD Board of Directors Regular Meeting Held July 23, 2015 at 8:30 a.m. 9 2015-131 10. COMMITTEE REPORTS 10.1. Interagency Committee with MWDOC and OCWD (Collett / Melton) • Next meeting is scheduled to be held July 28, 2015 at 4:00 p.m. 10.2. Joint Agency Committee with City of Placentia (Melton / Kiley) • Minutes of the meeting held June 22, 2015 at 2:00 p.m. will be provided at the next regular Board meeting. • Next meeting is scheduled to be held July 27, 2015 at 2:00 p.m. at Golden State Water in Placentia. 10.3. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) • Minutes of the meeting held June 23, 2015 at 10:00 a.m. were provided in the agenda packet. • Minutes of the meeting held July 22, 2015 at 10:00 a.m. will be provided at the next regular Board meeting. • Next meeting is yet to be scheduled. 10.4. Citizens Advisory Committee (Collett) • Next meeting is scheduled to be held July 27, 2015 at 8:30 a.m. 11. INTERGOVERNMENTAL MEETINGS Each of the Directors reported on their attendance at the following meetings. 11.1. YL LMCAC - July 9, 2015 (Beverage - As Needed) 11.2. WACO - July 10, 2015 (Hawkins/Kiley) 11.3. MWDOC Board - July 15, 2015 (Melton) 11.4. OCWD Board - July 15, 2015 (Kiley) 11.5. YL Planning Commission - July 15, 2015 (Melton) Minutes of the YLWD Board of Directors Regular Meeting Held July 23,2015 at 8:30 a.m. 10 2015-132 11.6. YL City Council - July 21, 2015 (Beverage) 11.7. YL Planning Commission - July 22, 2015 (Hawkins) 11.8. OCSD - July 22, 2015 (Kiley/Beverage) 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from July 24, 2015 —August 31, 2015 President Collett asked if the Board would like to consider rescheduling the regular meeting on Thursday, August 27, 2015 due to a schedule conflict. Following discussion, the Board determined to reschedule this meeting to Monday, August 31, 2015 at 8:30 a.m. The Board reviewed the activity calendar and made no additional changes. 14. ADJOURNMENT 14.1. The meeting was adjourned at 10:54 a.m. The next Regular Board of Directors Meeting will be held Thursday, August 13, 2015 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held July 23,2015 at 8:30 a.m. 11