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HomeMy WebLinkAbout2017-01-12 - Board of Directors Meeting Minutes 2017-004 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, January 12, 2017, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The January 12, 2017 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Miller at 8:32 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 Miller led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Marc Marcantonio, General Manager Al Nederhood, Vice President Steve Conklin, Engineering Manager Phil Hawkins, Director John DeCriscio, Operations Manager Brooke Jones, Director Delia Lugo, Finance Manager Art Vega, Information Technology Manager DIRECTORS ABSENT Annie Alexander, Executive Secretary Andrew J. Hall, Director Amelia Cloonan, Human Resources Analyst Javier Martinez, Water Production Supt Bryan Melton, Human Resources Analyst Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP David Aranda, Senior Consultant, BHI Management Consulting 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Marcantonio requested that the Board defer consideration of other potential revisions to the Board of Directors' Policies and Procedures Manual as listed in Item No. 8.3. until the next regular meeting to allow more time for Item No. 9.1. Minutes of the YLWD Board of Directors Regular Meeting Held January 12,2017 at 8:30 a.m. 1 2017-005 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports None. 6. PUBLIC COMMENTS Mr. Greg Schultz, resident, commented on remarks made by another member of the public during a previous Board meeting related to the District's financials. He also commented on the District's reserves and bond ratings. 7. CONSENT CALENDAR Mr. Marcantonio asked Mrs. Lugo to provide some background information regarding the payment to OCWD listed on Item No. 7.2. She stated that this was an annual fee per the District's annexation agreement with OCWD. Mr. Conklin provided a brief overview of the benefits provided by the annexation agreement. Mrs. Lugo indicated that this cost had been included in the FY 2016/17 budget. She also noted that anther payment to OCWD for approximately $2.7M would be included on a future billboard. This is a bi-annual assessment for replenishment of the groundwater basin. Staff then responded to questions from the Board regarding multiple items on the Consent Calendar. Director Hawkins made a motion, seconded by Director Jones, to approve the Consent Calendar. Motion carried 4-0-0-1 with Director Hall being absent. 7.1. Minutes of the Board of Directors Regular Meeting held November 10, 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$1,275,459.46. Minutes of the YLWD Board of Directors Regular Meeting Held January 12, 2017 at 8:30 a.m. 2 2017-006 7.3. District Janitorial Contract Recommendation: That the Board of Directors authorize the General Manager to execute a 3-year maintenance contract with Omni Clean Enterprise, Inc. for a total estimated cost of $104,650 (not including equipment repairs, equipment replacement, etc. and/or annual OC Consumer Price Index multiplier adjustments). 7.4. Terms and Conditions for Water and Sewer Service with Melia Homes for Tract 18020 Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Melia Homes for Tract 18020, Job No. 201606. 7.5. Terms and Conditions for Sewer Service with Javier Brito, 5192 Mountain View Ave Recommendation: That the Board of Directors approve the Terms and Conditions for Sewer Service with Javier Brito, 5192 Mountain Ave, Job No. 201617S. 8. ACTION CALENDAR 8.1. Refunding Revenue Bonds, Series 2017A Mr. Marcantonio explained that the previous Board had authorized staff to move forward with the advance refunding process of the 2008 Certificates of Participation (COP) due to favorable municipal market conditions and potential annual cash flow savings. He further stated that as there had been a change in market conditions and the composition of the Board of Directors, staff was looking to the new Board for guidance regarding this matter. Mrs. Cristy Parker, resident, commented on interest rates for the COPS and options available for refinancing. Mr. Ben Parker, resident, commented on options available for refinancing the COPs. The Board and staff then discussed moving forward with the refunding process, exploring other financing options, the District's credit ratings and debt service coverage ratio, and funding for future capital projects. Minutes of the YLWD Board of Directors Regular Meeting Held January 12, 2017 at 8:30 a.m. 3 2017-007 Director Hawkins made a motion, seconded by Director Jones, to proceed with the issuance of the Refunding Revenue Bonds (Series 2017A) and explore other available financing options. Mrs. Lugo noted that should the Board decide to move forward, the associated resolution and legal documents previously adopted in September would need to be updated and brought back at a future meeting. Motion carried 4-0-0-1 with Director Hall being absent. 8.2. Revisions to Meeting Assignments Mr. Marcantonio explained that some minor revisions to the Directors' meeting assignments had been requested. President Miller suggested that attendance at Yorba Linda City Council meetings be as needed and that Director Hawkins be assigned as a member of the YLWD/City of Yorba Linda Joint Agency Committee. Director Hawkins suggested that attendance at both Planning Commission meetings be as needed. Vice President Nederhood suggested that a Director be assigned to attend both the City Council and Planning Commission meetings. The Board then discussed rotating Director attendance at City Council meetings and designating a Director to attend Planning Commission meetings as needed. Director Hawkins made a motion, seconded by Director Nederhood, to assign Director Hawkins as a member of the YLWD/City of Yorba Linda Joint Agency Committee in place of Director Nederhood, rotate Director attendance at Yorba Linda City Council meetings, and assign Director Hawkins to attend both Yorba Linda Planning Commission meetings as needed. Motion carried 3-1-0-1 with Director Miller voting No and Director Hall being absent. 8.3. Modifying Schedule for Regular Meetings and Other Potential Revisions to Board of Directors Policies and Procedures Mr. Marcantonio explained that the Board had previously discussed changing the set time of the regular meeting to later in the evening. Since that time, it has also been suggested to reschedule the recurrence of regular meetings to the second and fourth Tuesday's instead of Thursday's so that staff can complete various tasks before the end of the work week. The Board also previously discussed modifying the Order of Business so that Closed Sessions (if necessary) would begin at 5:30 p.m. and regular business at 6:30 p.m. Minutes of the YLWD Board of Directors Regular Meeting Held January 12,2017 at 8:30 a.m. 4 2017-008 The Board briefly discussed the benefits of moving the time of the regular meetings to later in the evening. Director Hawkins made a motion, seconded by Director Jones, to modify the recurrence and time of regular Board meetings to the second and fourth Tuesday's of each month with Closed Session beginning at 5:30 p.m. (if necessary) and regular business beginning at 6:30 p.m. Motion carried 4-0-0-1 with Director Hall being absent. Mr. Marcantonio confirmed that the new schedule would begin with the next regular meeting which would be held on Tuesday, January 24, 2017. Ms. Alexander requested that the Board consider moving the regular Board meeting on Tuesday, February 28, 2017 to Wednesday, March 1 , 2017 due to a schedule conflict with Director attendance at an upcoming conference. The Board agreed. She also stated that she would be working with MWDOC and OCWD to reschedule the recurrence of future interagency committee meetings and with the City of Yorba Linda to schedule the next joint agency committee meeting. President Miller noted that the District's monthly financial statements would be presented at the second regular Board meeting of each month as an Action item. Mrs. Lugo requested that these reports be presented as a Discussion item. President Miller agreed. 8.4. Reorganization of Citizens Advisory Committee Mr. Marcantonio explained that the Board had previously discussed options for reorganizing the Citizens Advisory Committee (CAC) including.- disbanding ncluding:disbanding the current CAC; establishing a new Ad Hoc CAC and determining its purpose and duration; and determining the process and timeline for new member recruitment. He noted that one of the current CAC members was present earlier in the meeting to provide comment but had left prior to consideration of this matter. President Miller commented on the purpose of committees as described in the Board of Directors Policies and Procedures Manual. He also acknowledged the committee members service over the years. Director Hawkins commented on his previous service on the CAC. Minutes of the YLWD Board of Directors Regular Meeting Held January 12,2017 at&30 a.m. 5 2017-009 The Board then discussed the number of regular attendees at committee meetings, the original intent of the committee, creating a new committee with a focused purpose, the effort involved with recruiting new members, inviting current members to apply for service on a newly formed committee, and available avenues for recruitment. Director Miller made a motion, seconded by Director Hawkins, instructing staff to recruit citizens to serve on an ad hoc advisory committee through May 31, 2017 for the purpose of evaluating the District's rate structure. The Board then discussed modifying the length of service to continue through the budget process rather than a specific date, methods and timeline for member recruitment, scheduling the appointment of members during a Board meeting, and member attendance at future budget workshop meetings. Mr. Marcantonio suggested that the Board consider appointing committee members during the meeting scheduled March 1, 2017 which would provide staff with sufficient time for recruitment. Director Miller summarized the previous motion and stated that the Board would make appointments to the new committee on March 1, 2017. Motion carried 4-0-0-1 with Director Hall being absent. President Miller declared a recess at 10:02 a.m. The meeting was reconvened at 10:09 a.m. 9. DISCUSSION ITEMS 9.1. Role of the Board and Best Governance Practices Mr. Marcantonio introduced Mr. Aranda who provided a presentation to the Board regarding the following topics: the role and obligation of Board membership; the importance of making decisions in line with the District's mission; the public agency organizational model; Board relationships and governance; optimizing the use of Committees; and Board communications. The Board also discussed various aspects of the Ad Hoc Citizens Advisory Committee with Mr. Aranda. Director Hawkins left the meeting at 11:46 a.m. Mrs. Cristy Parker, resident, remarked on the handling of public comments during Board meetings. Minutes of the YLWD Board of Directors Regular Meeting Held January 12, 2017 at 8:30 a.m. 6 2017-010 Mr. Gagen provided clarification on handling public comments related to a specific agenda item. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports • MWDOC Elected Officials Forum — January 5, 2017 (Jones/Miller/Nederhood) President Miller reported on the Directors' attendance at the above listed event. 10.2. General Manager's Report Mr. Marcantonio deferred his full report in the interest of time. 10.3. General Counsel's Report Mr. Gagen stated that there was no need for Closed Session. 10.4. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) ■ Next meeting is scheduled January 24, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Nederhood) ■ Next meeting is yet to be scheduled. 11.3. Interagency Committee with City of Placentia and Golden State Water Company (Miller/Nederhood) ■ Next meeting is yet to be scheduled. 11.4. Citizens Advisory Committee (TBD) ■ Next meeting is scheduled January 23, 2017 at 8:30 a.m. Minutes of the YLWD Board of Directors Regular Meeting Held January 12, 2017 at 8:30 a.m. 7 2017-011 12. INTERGOVERNMENTAL MEETINGS The Directors who were present reported on their attendance at the following meetings. 12.1 YL City Council — January 3, 2017 (Miller) 12.2 MWDOC Board — January 4, 2017 (Nederhood/Jones) 12.3. OCWD Board — January 4, 2017 (Jones) 12.4. WACO — January 6, 2017 (Jones/Hawkins/Miller/Nederhood) 12.5. LAFCO — January 11 , 2017 (Nederhood —As Needed) 12.6. YL Planning Commission — January 11, 2017 (Hawkins) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from January 13, 2017 — March 31, 2017 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1 MWDSC Local Infrastructure Tour— February 3, 2017 MWDSC State Water Project and Sacramento-San Joaquin Delta Inspection Trip — February 24-26, 2017 MWDSC Hoover Dam / Colorado River Aqueduct Inspection Trip —April 7-9, 2017 CSDA Special District Leadership Academy Conference —April 23-26, 2017 Director Jones made a motion, seconded by Director Nederhood, to approve Director attendance at these events if desired. Motion carried 3-0-0-2 with Directors Hall and Hawkins being absent. Minutes of the YLWD Board of Directors Regular Meeting Held January 12,2017 at 8:30 a.m. 8 2017-012 The following Closed Session was not held. 15. CLOSED SESSION 15.1. Conference with Legal Counsel — Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: Julie Lonsdale vs. Yorba Linda Water District (OC Superior Court — Case No. 00808246) 16. ADJOURNMENT 16.1. The meeting was adjourned at 12:21 p.m. 'A—nnie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held January 12,2017 at&30 a.m. 9