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HomeMy WebLinkAbout2016-07-07 - Board of Directors Meeting Minutes 2016-118 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, July 7, 2016,.8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The July 7, 2016 Yorba Linda Water District Board of Directors Special Meeting 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. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Ric Collett, President Steve Conklin, Engineering Manager Mike Beverage, Vice President John DeCriscio, Operations Manager Phil Hawkins Gina Knight, Human Resources/Risk Manager Bob Kiley Delia Lugo, Finance Manager Gary Melton Art Vega, Information Technology Manager Annie Alexander Executive Secretary Cindy Botts, Water Cons Supv/Mgmt Analyst Laurie McAllaster, Records Mgmt Administrator Malissa Tem, Public Affairs Representative OTHER ATTENDEES Andrew Gagen, Partner, Kidman Law LLP Jon Hansen, Resident Wayne Miller, Resident Ben Parker, Resident Rob Simpson, Resident 4. PUBLIC COMMENTS Mr. Wayne Miller, resident, commented on the Fairmont Booster Pump Station (FBPS) Upgrade Project and discrepancies regarding the age of the existing structure on the District's website and other published materials. He also commented on an agreement with Shapell in regards to development and future water service to the proposed Esperanza Hills and Cielo Vista development projects. Minutes of the YLWD Board of Directors Special Meeting Held July 7,2016 at 8:30 a.m. 1 2016-119 5. DISCUSSION ITEMS 5.1. Annual Review of Directors' Policies and Procedures Manual Ms. Alexander explained that one of the provisions in the Board's current policies and procedures manual was that it be reviewed on an annual basis. She noted that staff was presenting this document to the Board at this time in order to receive feedback regarding potential revisions. She further explained that staff was also in the process of updating other policies, including separating those related to the Board from those related to District employees. As part of this housekeeping process, staff identified some language in the District's current and previous personnel rules that was inadvertently left out of the Board's policy manual when it was first adopted. Staff has also spent some time reviewing the manual and would like to suggest some minor revisions in order to enhance clarification and touch on the following topics: reimbursement of miscellaneous gratuities when traveling on District business; and public presentation of electronic materials at Board meetings. President Collett commented on the reimbursement amounts allotted for meals and related issues experienced by the Board and staff when traveling on District business. He also asked if the employee travel expense reimbursement policy was going to be reviewed in the near future. Ms. Alexander explained that once the Board approved any revisions to the Directors' travel expense reimbursement policy, staff would work on revising the employee's policy for subsequent review at a future Board meeting. Mrs. Lugo noted that the reimbursement amounts for meal expenses were based on an average of similar agencies and that per diem rates would be significantly lower. Staff then responded to questions from the Board regarding reimbursement for meal expenses and meals included with the cost of registration. Director Hawkins suggested that meal expenses that fall outside established reimbursement rates be eligible for ratification following an event. Staff then responded to questions from the Board regarding the individual and daily maximum reimbursement rates for meals and best practices. Director Hawkins also suggested a daily maximum reimbursement rate of $75 for meals rather than individual reimbursement rates for specific meals. Ms. Alexander confirmed that a redlined version of the manual would be presented to the Board for review at a future meeting. 5.2. Draft Operating Budget for FY 2016/17 Mrs. Botts reviewed staff's demand comparisons and differences between the FY 2015/16 budget and forecast. She noted that staff's analysis of the base fees had been performed prior to completion of the water/sewer rate Minutes of the YIWD Board of Directors Special Meeting Held July 7,2016 at 8:30 a.m. 2 2016-120 study and that staff had implemented various cost saving measures during the fiscal year. Additionally, the District did not end up being fined by the State Water Resources Control Board (SWRCB) as previously anticipated. Overall, the difference between the budget and forecast for FY 2015/16 is minimal. Mrs. Botts then presented two financial scenarios as requested by the Board at a previous meeting which were based on a 12% and 15% incremental increase (or bounce back) in water demand as compared to year end projections for the 2015/16 fiscal year. Also included was a scenario based on projections from year 2 of the District's original 5-year financial plan. Mrs. Botts noted that the projected demand was now significantly lower than what was initially presented in the original 5-year plan. Mr. DeCriscio then responded to questions from the Board regarding projected groundwater production, maximum percentages allowed, and the related benefits of the FBPS upgrade project. Mrs. Botts then provided an overview of the previous month's bounce back and historical purchase trends. The Board then discussed the first two financial scenarios and the expected increase in the City of Yorba Linda and Placentia-Yorba Linda Unified School District's outdoor irrigation. Mr. DeCriscio responded to questions from the Board regarding production trends. Mr. Jon Hansen, resident, distributed copies of a 4-year variable water cost ratio comparison sheet he had compiled. He stated that he was in favor of the 12% bounce back financial scenario and commented on the historical ratio of water costs to water sales as referenced in his comparison. He also commented on the District's historical and maximum groundwater production percentages, the FY 2015/16 budget, and the recent water rate increase. Mr. Ben Parker, resident, commented on a slide included in the presentation and information contained on page 65 of the FY 2015/16 budget. Mrs. Lugo noted that an updated version of that page would be included in the final draft of the FY 2016/17 budget document. Mr. Wayne Miller, resident, commented on the District's historical and maximum groundwater production .percentages and associated costs. Mr. DeCriscio provided an overview of the District's annexation agreement with OCWD and maximum groundwater production percentages. President Collett commented on staff's efforts during the previous year to enhance the District's groundwater production capabilities as well as advantages associated with upgrading the FBPS. Mr. Miller also commented on obtaining developer funds to help offset the cost of the FBPS upgrade project. Minutes of the YLWD Board of Directors Special Meeting Held July 7,2016 at 8:30 a.m. 3 2016-121 President Collett, Vice President Beverage, and Mr. DeCriscio provided additional background information regarding the District's distribution system and the benefits of upgrading the FBPS. Mr. Jon Hansen, resident, further commented on the District's previous and future groundwater production capabilities. President Collett and Mr. DeCriscio provided further explanation related to this topic. Mr. Rob Simpson, resident, commented on the percentage of groundwater utilized in Yorba Linda, groundwater levels in Santa Ana, and recharging the groundwater basin. President Collett and Mr. Conklin provided an overview of OCWD's efforts related to managing the groundwater basin. Mr. Simpson further commented on groundwater levels in Santa Ana and alternate methods for capturing rainfall. Mr. Wayne Miller, resident, commented on the estimated construction costs of the FBPS upgrade project. Mrs. Lugo explained that there would be a discussion item on the agenda for the July 14, 2016 regular meeting requesting direction from the Board regarding the specific bounce back percentage to be incorporated into the draft budget. The final draft budget document will then be presented at the special meeting scheduled July 21, 2016 for Board consideration. Each of the Directors then shared their individual opinions regarding the financial scenarios presented during the meeting, of which the majority were in favor of the 12% bounce back. The Board and staff then discussed which budget related materials would be ready for review at the meeting on July 14, 2016. 6. ADJOURNMENT 6.1. The meeting was adjourned at 9:33 a.m. The next Regular Board of Directors Meeting will be held Thursday, July 14, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Special Meeting Held July 7,2016 at 8:30 a.m. 4