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HomeMy WebLinkAbout2016-06-23 - Board of Directors Meeting Minutes (B) 2016-110 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, June 23, 2016, 8;30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The June 23, 2016 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 Mike Beverage, Vice President Steve Conklin, Engineering Manager Phil Hawkins Gina Knight, Human Resources/Risk Manager Bob Kiley Delia Lugo, Finance Manager Gary Melton Damon Micalizzi, Public Information Manager Art Vega, Information Technology Manager Javier Martinez, Water Production Superintendent Laurie McAllaster, Records Mgmt Administrator Marcus Millen, Records Mgmt Specialist ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Gene Hernandez, Councilmember, City of Yorba Linda 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Marcantonio requested to add the following item to the agenda as there was a need to take immediate action and the need for action came to staff's attention subsequent to the agenda being posted. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2016 at&30 a.m. 1 2016-111 8.4 Request for Letter of Support for City of Anaheim's Prop 1 Stormwater Improvement Grant Application Recommendation: That the Board of Directors review the attached draft letter of support, provide any necessary revisions to the letter, direct the General Manager to prepare and sign the letter of support and forward it to the City of Anaheim. An agenda report related to this item was previously distributed to the Board and made available to the public. Director Beverage made a motion, seconded by Director Hawkins, to add Item No. 8.4. to the agenda. Motion carried 5-0. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. MWDSC/MWDOC Director's Report None. 6. PUBLIC COMMENTS None. 7. CONSENT CALENDAR Director Beverage made a motion, seconded by Director Hawkins, to approve the Consent Calendar. Motion carried 5-0. 7.1. Minutes of the Board of Directors Regular Meeting held May 26, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$1,112,482.81. 8. ACTION CALENDAR 8.1. Appropriations Limit for Fiscal Year 2016/17 Mrs. Lugo explained that each year, the District must adopt the Appropriations Limit and factors used to calculate this number, in accordance with Proposition 13, Government Code 7900 and Article XIIIB of the California Constitution. The Appropriations Limit assures that government agencies do not assess and collect taxes in excess of the Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2016 at 8:30 a.m. 2 2016-112 controlled limits. The District receives a relatively small amount of revenue from property taxes annually which is historically well below the Appropriates Limitation each year. The District's budgeted property tax revenue for FY 2016/17 is $1,450,000, which is substantially lower than the calculated limitation of $6,728,584. Therefore, there are no excess appropriations to be returned to the taxpayers. Mrs. Lugo then responded to questions from the Board regarding the District's property tax revenue in FY 2015/16 and the assessment process. Director Beverage made a motion, seconded by Director Kiley, to approve Resolution No. 16-07 Adopting the Appropriations Limit for Fiscal Year 2016/17. Motion carried 5-0 on a Roll Call vote. Mrs. Lugo noted that as required by law, YLWD's appropriations limit calculation had been posted in the lobby and on the District's website for two weeks prior to the meeting. 8.2. Financial Reserves Policy for Fiscal Year 2016/17 Mrs. Delia explained that the proposed policy was substantially the same as the prior years with the exception of the addition of a new reserve and an updated account balance. Target levels for previously established reserves would remain the same and the new Conservation Reserve would be funded by the net result of assessed administrative penalties less allowed expenditures each fiscal year. The Conservation Reserve will be used for District efforts related but not limited to, employee salaries and materials for conservation and leak detection, as well as other allowable expenses outside the normal cost of service. President Collett asked about the possibility of having a third party review the District's reserve amounts and commented on the City of Yorba Linda's reserve amounts. At the request of Director Melton, Councilmember Hernandez provided an overview of the City of Yorba Linda's reserves. Mr. Marcantonio suggested that the District's financial advisors provide additional information to the Board regarding appropriate reserve levels and commented on other agencies methods for calculating reserves. Director Beverage commented on previous recommendations provided by the District's financial advisors related to reserves. Additional discussion regarding restricted and dedicated reserves as well as the relationship between reserves and bond ratings followed. President Collett requested that staff come back to the Board with a proposal for a third party review of the District's reserve policy. Director Beverage suggested that this matter be discussed at a future workshop meeting. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2016 at 8:30 a.m. 3 2016-113 Director Kiley made a motion, to approve Resolution No. 16-08 Adopting the Financial Reserves Policy for Fiscal Year 2016/17 and Rescinding Resolution No. 15-14. Mrs. Lugo noted that representatives from Fieldman Rolapp were willing to work with the District to establish a new reserves policy based on Raftelis' recommendations contained in the water/sewer rate study. However, Fieldman Rolapp has recommended that the District postpone revising its reserves policy until it is able to contribute to each of the reserves on an annual basis as recommended. President Collett reiterated the importance of having a third party review of the District's reserves policy. Director Hawkins seconded the motion which carried 5-0 on a roll call vote. 8.3. California Special Districts Association (CSDA) 2016 Board Elections Mr. Marcantonio explained that the Board had the opportunity to vote for a candidate in the upcoming CSDA 2016 Board Election. Each of CSDA's six networks has three seats on the Board. Mr. Bill Nelson from the Orange County Cemetery District is running for re-election for Seat B in the Southern Network along with Mr. John DeMonaco from the Chino Valley Independent Fire District and Mr. Ronald Coats from the East Valley Water District. Director Hawkins made a motion, seconded by Director Melton, to vote for Mr. Bill Nelson from the Orange County Cemetery District in the CSDA 2016 Board Election for Seat B in the Southern Network. Motion carried 5-0. 8.4. Request for Letter of Support for City of Anaheim's Prop 1 Stormwater Improvement Grant Application Mr. Steve Conklin explained that staff from the City of Anaheim had requested a letter of support for their agency's Stormwater Grant Application to the State for a project located near Richfield Road and La Palma Avenue. The project is designed to help alleviate flooding in the area and contribute to the reliability of the local groundwater supply by diverting stormwater to OCWD's recharge facilities which would otherwise be lost to the Santa Ana River and the Pacific Ocean. A copy of the draft letter and OCWD's letter of support were included in the agenda packet. Mr. Conklin then responded to questions from the Board regarding the location of the proposed project. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2016 at 8:30 a.m. 4 2016-114 Director Beverage made a motion, seconded by Director Kiley, to approve the letter of support as presented and direct the General Manager to execute and forward it to the City of Anaheim. Motion carried 5-0. 9. REPORTS, INFORMATION ITEMS, AND COMMENTS 9.1. President's Report None. 9.2. Directors' Reports Director Hawkins commented on the new watering schedule and how fast his lawn turned from brown to green in a two-week period. President Collett noted that he'd experienced the same and asked about the daily production trends. Mr. Martinez provided an overview of June's daily production as compared to the same month last year and noted that there had been an approximate 10% increase. Mr. Marcantonio clarified that the increase was in production not consumption and that staff had recently augmented reservoir levels due to weather conditions. Director Beverage commented on the number of people in his neighborhood who were unaware of the new watering schedule. 9.3. General Manager's Report Mr. Marcantonio asked each of the managers or their designees to provide a report regarding activities within their respective departments. Mr. Conklin reported on the status of the Richfield Road and Well 21 projects and responded to questions from the Board regarding potholing activities on Richfield Road. Mr. Martinez provided a report on behalf of Mr. John DeCriscio. He commented on the increased number of AMS leaks recently detected through the District's water loss prevention program. In light of this upsurge, two additional leak crews have been formed. He also reported on the percentage of groundwater versus import water being utilized. Mrs. Lugo reported that Finance staff were working on preparation of the budget and the ongoing audit. She noted that Wells Fargo had determined to delay consideration of extending the District's line of credit until mid-July. Mr. Vega reported that a hard drive on one of the servers had failed. He provided an overview of staff's mitigation efforts and commented on the number of blocked threats to the District's computer network over the past two months. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2016 at 8:30 a.m. 5 2016-115 Mr. Micalizzi reported that the State had recently approved the District's self-certification conservation standard of 0%. Included in the application was a listing of the Districts mechanisms supporting a higher level of conservation, one of which is the 10% water use reduction goal associated with Stage 1 of YLWD's Conservation Ordinance. At the request of President Collett, Mr. Micalizzi clarified that this meant the District had self-certified that it would have adequate water supplies for 3 more dry years, not that conservation efforts would be discontinued. Mr. Micalizzi also provided an overview of staff's efforts to notify customers of the new water schedule and the status of various legislative matters. He further noted that the next issue of the newsletter would be out to customers in the next few days and commented on local media interest in the outcome of pending litigation. Messrs. Martinez, Marcantonio, and Conklin then responded to questions from the Board regarding staff's efforts associated with Red Flag events and ongoing fire risk mitigation activities. Mr. Micalizzi and Mr. Marcantonio also responded to questions from the Board regarding the City's and School District's expected bounce back in water consumption. Mrs. Knight reported that staff had been successful in obtaining a wellness grant for $2,000 from ACWA/JPIA. She also noted that required staff had participated in annual hearing testing for which there was no shift in the results as compared to the previous years. Additionally, staff is in the process of reviewing approximately 250 applications for an open position in Customer Service as well as working on the upgrade to Laserfiche Avante. Mr. Marcantonio reported that MWDOC's Board of Directors had approved a county-wide conservation goal of 10% which aligns with the District's current conservation goal of 10%. He also provided an overview of new litigation filed by IRWD against OCWD. 9.4. General Counsel's Report None. 9.5. Future Agenda Items and Staff Tasks None. 10. COMMITTEE REPORTS 10.1. Interagency Committee with MWDOC and OCWD (Collett / Melton) • Next meeting is scheduled July 26, 2016 at 4:00 p.m. Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2016 at 8:30 a.m. 6 2016-116 10.2. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) • Minutes of the meeting held May 31, 2016 at 9:00 a.m. were provided in the agenda packet. • Next meeting is scheduled June 28, 2016 at 9:00 a.m. at YL City Hall. 10.3. Interagency Committee with City of Placentia and Golden State Water Co. (Collett / Kiley) • Minutes of the meeting held May 9, 2016 at 3:00 p.m. were provided in the agenda packet. • Next meeting is yet to be scheduled. 10.4. Citizens Advisory Committee (Melton) • Next meeting is scheduled June 27, 2016 at 8:30 a.m. 11. INTERGOVERNMENTAL MEETINGS The Directors and staff reported on their attendance at the following meetings. 11.1. MWDOC Board — June 15, 2016 (Melton) 11.2. OCWD Board - June 15, 2016 (Kiley) 11.3. YL Planning Commission - June 15, 2016 (Melton) Director Melton was unable to attend this meeting. 11.4. YL City Council - June 21, 2016 (Collett) 11.5. OCSD Board - June 22, 2016 (Kiley/Beverage) 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from June 24, 2016 — July 31, 2016 The Board reviewed the activity calendar and made no changes. Minutes of the YLWD Board of Directors Regular Meeting Held June 23,2016 at 8:30 a.m. 7 2016-117 13. ADJOURNMENT 13.1. The meeting was adjourned at 9:49 a.m. A Special Board of Directors Meeting has been scheduled Thursday, July 7, 2016 at 8:30 a.m. The next Regular Board of Directors Meeting will be held Thursday, July 14, 2016 at 8:30 a.m. Marc Marcantonio Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held June 23, 2016 at 8:30 a.m. 8