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HomeMy WebLinkAbout2016-03-30 - Board of Directors Meeting Minutes 2016-048 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, March 30, 2016, 3:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The March 30, 2016 Yorba Linda Water District Board of Directors Workshop Meeting was called to order by President Collett at 3:00 p.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 Director Hawkins 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 Gina Knight, Human Resources/Risk Manager Gary T. Melton Delia Lugo, Finance Manager Art Vega, Information Technology Manager Damon Micalizzi, Public Information Manager Annie Alexander, Executive Secretary Cindy Botts, Water Cons Supvr/Mgmt Analyst Kelly McCann, Senior Accountant Bryan Melton, Human Resources Analyst Malissa Tern, Public Affairs Representative OTHER ATTENDEES Andrew Gagen, Partner, Kidman Law LLP Gene Hernandez, Councilmember, City of Yorba Linda John Milton, Resident 4. PUBLIC COMMENTS None. 5. DISCUSSION ITEMS (The following items were taken out of order.) Minutes of the YLWD Board of Directors Workshop Meeting Held March 30,2016 at 3:00 p.m. 1 2016-049 5.2. Potential Amendments to Ordinance No. 15-01 Mrs. Lugo stated that at a previous workshop meeting, staff had been tasked with drafting a new ordinance that would allow the flexible application of administrative penalties based on customers' conservation efforts. Mrs. Botts explained that the current ordinance had been developed in response to the emergency drought regulations adopted by the State Water Resources Control Board (SWRCB) and the District's assigned 36% conservation mandate. Should the District be successful in its application to SWRCB for an 8% downward adjustment, or be assigned a different percentage at some point in the future, this new ordinance would allow the Board to adjust the penalty structure in relation to those and other related circumstances. Legal counsel worked with staff to prepare a replacement ordinance which was set up in a similar manner as the water conservation ordinance, a copy of which was distributed at the meeting. The draft ordinance currently contains four different stages of administrative penalties from which the Board could choose from based on the State's regulations and customers' water usage. Staff requested feedback from the Board regarding the specific number of stages and the associated administrative penalties desired. Mr. Gagen then responded to questions from the Board regarding the process for implementing a specific stage. Following discussion, the Board instructed staff to bring a finalized version of the ordinance for consideration at the next regular meeting. 5.1. Draft FY 2016-17 Operating Budget Mrs. Lugo and Mrs. Botts provided a presentation regarding the draft operating budget, a copy of which was distributed at the meeting. Mrs. Botts began with an overview of the projected changes in FY 2016/17 including expected rate increases from OCWD, MWDOC and MWD. She also provided information related to historical water costs and purchases. Mrs. Botts then reviewed the key budget assumptions and noted that the adjusted rate and time period of potential fines from SWRCB had been included while potential revenue from administrative penalties was excluded. Mrs. Lugo then provided an overview of the projected revenue and expenses which did not include an increase in the current water or sewer rates. She also reviewed these same projections with a potential roll back of the current water rates. Mrs. Botts then reviewed the projected variable costs and Mrs. Lugo provided an overview of the key expense factors. Mrs. Knight presented the projected salary and benefits expenses including staffing of the new leak detection program, proposed changes in staffing of the water conservation division, a cost of living adjustment specified in the Memorandum of Understanding, and a new performance evaluation form and pay plan structure to be implemented next fiscal year. Staff then responded to questions from the Board regarding staffing of the water conservation division and projected salary Minutes of the YLWD Board of Directors Workshop Meeting Held March 30,2016 at 3:00 p.m. 2 2016-050 and benefit expenses. Mrs. Botts provided an overview of projected replacement costs for the District's water and wastewater assets. Mr. Conklin then reviewed the five year capital improvement project budget. He and Mr. DeCriscio responded to questions from the Board regarding the status, schedule, projected costs and cost savings for various projects. Mrs. Lugo noted that a handout containing various scenarios for payoff of the line of credit with Wells Fargo had been distributed at the meeting. She noted that in addition to bundling a partial or full payoff of the principal with the potential future refunding of the 2008 Certificates of Participation, the Board also had the option of extending repayment for an additional year if desired. Mr. McCann then provided an overview of each of the scenarios. Director Collett requested that staff prepare a report regarding revenues and expenses related to administrative penalties for review at the next Board workshop meeting. Mr. John Milton, resident, commented on budgeting for reduced administrative penalties, the amount collected to date, and projected reserves. Staff noted that additional information regarding these topics would be provided at the next Board workshop meeting. Mrs. Lugo stated that she had a schedule conflict with the time for the next workshop meeting. Following brief discussion, the Board determined to reschedule the next workshop meeting on April 21, 2016 from 3:00 p.m. to 10:00 a.m. 6. ADJOURNMENT 6.1. The meeting was adjourned at 4:37 p.m. The next Regular Board of Directors Meeting will be held Thursday, April 14, 2016 at 8:30 a.m. // Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Workshop Meeting Held March 30,2016 at 3:00 p.m. 3