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HomeMy WebLinkAbout2017-04-18 - Board of Directors Meeting Minutes 2017-079 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Tuesday, April 18, 2017, 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 4:01 p.m. 2. PLEDGE OF ALLEGIANCE 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 (Arrived at 418 p.m.) Gina Knight, HR/Risk and Safety Manager Art Vega, Information Technology Manager DIRECTORS ABSENT Annie Alexander, Executive Secretary Andrew J. Hall Director Cindy Botts, Management Analyst Kelly McCann, Senior Accountant ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP 4. PUBLIC COMMENTS None. 5. ACTION CALENDAR 5.1. Determination of Refunding Scenario for Revenue Bonds, Series 2017A Ms. Cindy Botts explained that due to timing factors associated with release of the official statement (OS) to investors, the Board would need to consider pursuing either the "advanced" or "current" refunding scenario for the District's revenue bonds. Should the Board wish to pursue the "advanced" option, the OS would be released the week of April 17, 2017. This would allow for an April/May timeline for marketing and closing the bonds. Should the Board desire to pursue the "current" option, the OS would be released closer to the July/August timeline for marketing and Minutes of the YLWD Board of Directors Special Meeting Held April 18, 2017 at 4:00 p.m. 1 2017-080 closing of the bonds. Both of these options were previously presented and discussed during the April 11, 2017 Board meeting. Once the OS was released, marketing of the bonds would soon follow. Should the Board decide to wait for the April 25, 2017 regular meeting to consider which option to pursue, the "advanced" option would not be possible. President Miller suggested that consideration of this item be suspended until Director Jones arrived. 6. DISCUSSION ITEMS 6.1. Budget for Salaries & Benefits, Supplies & Services, and Variable Costs for FY 2017/18 Ms. Botts stated that staff had begun using a new naming convention to identify fiscal years (FY) which was reflected in the presentation. She also defined various general terms related to the operating budget and identified where to locate associated information. Ms. Gina Knight provided an overview of salaries and benefits including variances between the budget and forecast for FY 2017 and proposed budget for FY 2018. The Board and staff then discussed positions that were underfilled and/or vacant during the current fiscal year, positions that were funded by administrative penalties, merit increases, and staffing. Mr. Marcantonio noted that following the budget process, staff would be reviewing the current organizational structure. Director Jones joined the meeting at this time. The Board and staff continued their discussion regarding the results of a previous organizational performance review, modifications to certain slides in regards to the presentation of financial data and inclusion of supporting reports, potentially using an outside vendor to process payroll, and variances between the budget and forecast for FY 2017. Ms. Knight explained the process for Board consideration and approval of budgeted positions. The Board and staff then discussed cost of living and merit increases, performance evaluations, alternative methods for administering merit increases, results of an internal salary survey, active contracts for services with outside consultants/vendors, staff overtime, other post-employment Minutes of the YLWD Board of Directors Special Meeting Held April 18,2017 at 4:00 p.m. 2 2017-081 benefit (OPEB) annual required contribution, and purpose of the employee liabilities reserve, and mandatory benefits. Discussion continued regarding the process for qualifying for and handling of refunds received from ACWA/JPIA, fringe benefits, cost savings achieved during the current fiscal year, contrasting budgeting philosophies, personnel related insurance costs, floating holidays, retiree benefits, unemployment insurance, and the difference between the unfunded accrued liability and OPEB contribution. Mr. Kelly McCann provided an overview of key factors in the differences between the FY 2017 forecast and FY 2018 proposed budget for supplies and services. He then reviewed variances in each major expense category. The Board and staff discussed the type of computer hardware to be purchased for field personnel, updating the Asset Management Plan (AMP), and funds allocated for public relations and CMMS consulting services. In response to a question from Mr. Ben Parker (resident), Mr. Steve Conklin explained the process for updating the AMP. Mr. McCann continued reviewing variances in each major expense category. The Board and staff then discussed breaking out some individual costs included in the FY 2018 proposed budget within the professional services category, utilizing reserves to cover the cost of performing a water quality study, obtaining more detail on variances above a certain percentage or dollar amount, and variances in the professional development category. In response to a question from Ms. Cristy Parker (resident), staff explained the differences between services provided by legislative and public relations consultants. Mr. McCann then presented actuals for supplies and services from the previous 10 years audited financial reports as compared to the FY 2017 forecast and FY 2018 proposed budget. Ms. Botts reviewed the key budget assumptions for water purchases during FY 2018 and staff summarized benefits to be provided by the Fairmont Booster Pump Station Upgrade Project and timeline for completion. Ms. Botts then reviewed the water operating plan, water purchase cost increases, historical and projected groundwater and import water costs, change in total water purchases from the previous 9 years as compared to Minutes of the YLWD Board of Directors Special Meeting Held April 18, 2017 at 4:00 p.m. 3 2017-082 the FY 2017 forecast and FY 2018 proposed budget, conservation recovery and monthly historical purchase trends, and projected import and groundwater costs for FY 2018. She also provided a summary of historical, projected and budgeted operating expenses broken down by major category. The Board commended and thanked staff for their efforts. 5. ACTION CALENDAR CONTINUED 5.1. Determination of Refunding Scenario for Revenue Bonds, Series 2017A (Continued) President Miller explained that the staff report for this item had already been presented and opened the floor to public comment. There being none, the Board discussed the ability of changing this determination prior to the bonds going to market. Ms. Botts noted that an update on market conditions would be presented at the April 25, 2017 meeting during which the Board would have the opportunity to reconsider. She also clarified the differences between the "advanced" and "current" refunding scenarios. Director Hawkins made a motion, seconded by Director Jones, to pursue the "advanced" scenario for refunding the District's Revenue Bonds, Series 2017A. Motion carried 4-0-0-1 with Director Hall being absent. 7. ADJOURNMENT 7.1. The meeting was adjourned at 6:40 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Special Meeting Held April 18, 2017 at 4:00 p.m. 4