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HomeMy WebLinkAbout2016-04-21 - Board of Directors Meeting Minutes 2016-060 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, April 21, 2016, 10:00 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The April 21, 2016 Yorba Linda Water District Board of Directors Workshop Meeting was called to order by President Collett at 10:00 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 Director Beverage led the pledge. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Ric Collett, President Marc Marcantonio, General Mgr (Arrived at 10:50 a.m.) Michael J. Beverage, Vice President Steve Conklin, Engineering Manager Phil Hawkins (Arrived at 10:40 a.m.) 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 Cindy Botts, Water Cons Supvr/Mgmt Analyst Kelly McCann, Senior Accountant Bryan Melton, Human Resources Analyst Malissa Tem, Public Affairs Representative OTHER ATTENDEES Art Kidman, Partner, Kidman Law LLP Piper Schaar, Product Support & Development, OmniEarth Dustin Cady, Business Development Manager, Dropcountr Al Nederhood, Resident Eddy Jackson, Resident Ben Parker, Resident President Collett noted that Director Hawkins was running late and would arrive as soon as possible. He also indicated that some of the following agenda items would be taken out of order. Minutes of the YLWD Board of Directors Workshop Meeting Held April 21,2016 at 10:00 a.m. 1 2016-061 4. PUBLIC COMMENTS Mr. Al Nederhood, resident, commented on the recall petition, the current budget, and pending litigation. Ms. Julia Shultz, resident, commented on the current budget and the impact of the State's conservation mandate. 5. DISCUSSION ITEMS The following items were taken out of order. 5.2. Draft FY 2016-17 Operating Budget Mrs. Delia Lugo commented on a recent incident at the City of Placentia and provided the Board with an overview of the District's process for initiating and approving wire transfers. She also noted that the District had recently received the Distinguished Budget Presentation Award for the FY 2015/16 budget from the Government Finance Officers Association (GFOA). Mrs. Lugo then reviewed the various cost increases associated with the District's groundwater and import water supplies for the next fiscal year as well as key budget assumptions. She then presented the draft water and sewer budget summary and noted that it did not include any increase in rates or pass-through costs. While reserve levels won't meet previous projections, the District would still be able to meet its debt service requirements. . Mrs. Botts then reviewed the projected variable water costs, potential pass-through costs (which weren't included in the draft budget calculations), as well as projected import water and groundwater costs. Mrs. Lugo noted that the draft budget for personnel costs had increased by $3,000 due to the 1959 Survivor Benefit Program. This cost will decrease incrementally in subsequent years. Mrs. Botts then presented the draft supplies and services budget and explained that it had also increased by $4,000. Mrs. Lugo noted that this cost was for completion of an actuarial report related to the survivor benefit program as required by GASB 74 and 75. Mrs. Lugo then responded to questions from the Board related to uncollectible accounts and fees and permits. Mrs. Lugo then reported on the impact of potential litigation on the process of refinancing the 2008 Certificates of Participation. Mr. McCann provided the Board with an analysis of several scenarios for payoff of the District's line of credit with Wells Fargo. Mrs. Botts then reviewed four different scenarios of the 5 year financial plan and responded to related questions from the Board. Mrs. Lugo provided a summary of the purpose of reserves and basic reserve types. She also provided an overview of the District's reserve types, their purpose, projected year end balances, and the recommended balances included in the recent water/sewer rate study. Mrs. Lugo then presented a financial statement for the administrative penalty reserve and responded to questions from the Board. Minutes of the YLWD Board of Directors Workshop Meeting Held April 21,2016 at 10:00 a.m. 2 2016-062 Mr. Al Nederhood, resident, commented on the budget summary and projected supplies and services. He also commented on the duties of the water conservation representatives and historical water conservation efforts in the community. Mr. Eddy Jackson, resident, commented on the budget information contained in the presentation and the administrative penalty reserve. Mr. Ben Parker, resident, commented on the administrative penalty reserve statement, the District's water conservation activities, and the five year financial plan. Mr. Ed Gunderson, resident, commented on projected water purchases and reserves. Mrs. Lugo explained that staff was working on developing the final draft budget document in accordance with GFOA standards and expected to be ready to present it to the Board for review in early June. As such, the Board decided to reschedule the workshop meeting on May 19, 2016 to a future date yet to be determined in June. President Collett declared a recess at 11:30 a.m. The meeting reconvened at 11:37 a.m. 3. INTRODUCTIONS AND PRESENTATIONS 3.1. Presentation from OmniEarth/Dropcountr Regarding Grant Opportunity for Water Consumption Analytics Ms. Piper Schaar and Mr. Dustin Cady provided a presentation to the Board regarding an opportunity for the District to participate in a grant being funded by the Santa Ana Watershed Project Authority for a web- based water consumption analytics and customer engagement tool. Director Melton left the meeting at 11:44 a.m. Following discussion, the Board instructed staff to pursue participation in the grant opportunity and obtain cost information for continuation of the program following the one year expiration for consideration at a future meeting. Minutes of the YLWD Board of Directors Workshop Meeting Held April 21,2016 at 10:00 a.m. 3 2016-063 5. DISCUSSION ITEMS CONTINUED 5.1. Scheduling of Future Presentation from HomeServe Regarding Services Offered The Board discussed scheduling a future presentation regarding this program and determined not to do so at this time. 6. ADJOURNMENT 6.1. The meeting was adjourned at 12:08 p.m. The next Regular Board of Directors Meeting will be held Thursday, April 28, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Workshop Meeting Held April 21,2016 at 10:00 a.m. 4