HomeMy WebLinkAbout2016-01-21 - Board of Directors Meeting Minutes 2016-007
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
Thursday, January 21, 2016, 3:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The January 21, 2016 Yorba Linda Water District Board of Directors Special
Meeting was called to order by President Collett at 3:00 p.m. The meeting was
held in the Board/Training 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 John DeCriscio, Operations Manager
Robert R. Kiley Delia Lugo, Finance Manager
Gary T. Melton Art Vega, Information Technology Manager
Damon Micalizzi, Public Information Manager
Annie Alexander, Executive Secretary
Malissa Tern, Public Affairs Representative
OTHER ATTENDEES
Art Kidman, Partner, Kidman Law LLP
Brett Barbre, Director, MWDSC and MWDOC
Tom DeMars, Principal, Fieldman Rolapp & Associates
Josh Lentz, Vice President, Fieldman Rolapp & Associates
4. PUBLIC COMMENTS
None.
Minutes of the YLWD Board of Directors Special Meeting Held January 21,2016 at 3:00 p.m. 1
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5. ACTION CALENDAR
5.1. Refunding Option for 2008 Certificates of Participation
Mrs. Lugo introduced Messrs. DeMars and Lentz who presented the
Board with a presentation regarding options available to the District for
refunding (or refinancing) the 2008 Certificates of Participation (COP). Mr.
Lentz then provided an overview of the municipal market conditions and
interest rates. He commented on the substantial savings achieved from
the advance refunding of the 2003 COP's in 2012 and the current savings
estimates for doing the same with the 2008 COP's. He then responded to
questions from the Board regarding the District's credit rating, the potential
impact of anticipated litigation, and the proposed timeline for completion.
Mr. Lentz also reviewed the next steps of the process and a tentative
schedule, and asked if the Board would like to consider including payoff of
the District's line of credit (LOC) with Wells Fargo. Mrs. Lugo briefly
commented on the potential impact on the District's debt ratio should
payoff of the LOC be bundled with refunding of the 2008 COP's.
Director Beverage made a motion, seconded by Director Hawkins, to
approve moving forward with the process of refunding the 2008
Certificates of Participation and include an option to pay off the principal
balance owed on the District's line of credit with Wells Fargo. Motion
carried 5-0.
6. DISCUSSION ITEMS
6.1. District Fiduciary Responsibilities
Mrs. Lugo asked Mr. Lentz to provide the Board with an overview of the
District's fiduciary responsibilities including covenants with bond holders,
agreements with credit issuers, the agency's debt coverage ratio, and the
potential impact of anticipated litigation. Mr. Lentz then responded to
questions from the Board regarding credit ratings and reserves. Mrs.
Lugo then reported on her participation in a teleconference held with
Standard & Poors (S&P) earlier in the day. She noted that S&P's rating
criteria had recently changed. Mr. DeCriscio also participated in the call
and provided a brief report regarding the questions he responded to and
the information provided. Mr. Marcantonio commented on the importance
of preforming a 5-year rate study. Mrs. Lugo further noted that Fitch
Ratings would most likely be issuing a survey on the condition of the
District at some point in the near future. Director Barbre briefly
commented on the differences between S&P and Fitch's rating criteria.
Mr. Marcantonio thanked staff for their efforts related to this matter.
Minutes of the YLWD Board of Directors Special Meeting Held January 21, 2016 at 3:00 p.m. 2
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7. ADJOURNMENT
7.1. The meeting was adjourned at 3:46 p.m. The next Regular Board of
Directors Meeting will be held Thursday, January 28, 2016 at 8:30 a.m.
Annie Alexander
Assistant Board Secretary
Minutes of the YLWD Board of Directors Special Meeting Held January 21,2016 at 3:00 p.m. 3