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HomeMy WebLinkAbout2017-08-08 - Board of Directors Meeting Minutes 2017-156 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, August 8, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:30 p.m. President Miller welcomed Brett Barbre as the District's new Assistant General Manager. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Brett Barbre, Assistant General Manager Al Nederhood, Vice President Steve Conklin, Engineering Manager Andrew J. Hall, Director Gina Knight, HR/Risk and Safety Manager Brooke Jones, Director Delia Lugo, Finance Manager Art Vega, Information Technology Manager DIRECTORS ABSENT Annie Alexander, Executive Assistant Phil Hawkins, Director Javier Martinez, Water Production Superintendent ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Beth Haney, Councilmember, City of Yorba Linda 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports None. Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 1 2017-157 6. PUBLIC COMMENTS Ben Parker (resident) commented on potential conflicts of interest in association with Assistant General Manager Barbre's other positions in the water industry. Assistant General Manager Barbre stated the matter had been analyzed by MWDOC's legal counsel, Best Best and Krieger, and no conflict of interest was identified. General Counsel Andrew Gagen stated that Kidman Law had also researched the matter and determined there was no conflict of interest. Assistant General Manager Barbre indicated that Best Best and Krieger's opinion letter would be available to the public once finalized. General Counsel Gagen clarified that multiple legal opinions were obtained prior to hiring Assistant General Manager Barbre. Terry Harris (resident) commented on the potential need for Assistant General Manager Barbre to recuse himself from certain decision making processes. Assistant General Manager Barbre explained the level of detail to be included in the opinion letter and his method for tracking time spent in each capacity. Cristy Parker (resident) commented on potential conflicts of interest in association with Assistant General Manager Barbre's service on MWDSC and MWDOC's Board of Directors. Jeff Decker (resident) commented on MWDSC's funding strategy for the agency's other post-employment benefits (OPEB) liability and potential conflicts of interest in association with Assistant General Manager Barbre's service on MWDSC's Board of Directors. David Ramocinski (resident) commented on the District's historical import water purchases from MWDOC and potential conflicts of interest in association with Assistant General Manager Barbe's multiple roles. General Counsel Gagen and Assistant General Manager Barbre commented on circumstances for which Mr. Barbre may need to recuse himself from the decision making process at MWDSC and MWDOC Board meetings. Pat Nelson (resident) commented on the recent hiring of Assistant General Manager Barbre, spoke in favor of implementing a customer rebate program for the purchase of water efficient devices in lieu of issuing a conservation credit. Minutes of the YLWD Board of Directors Regular Meeting Held August 8,2017 at 6:30 p.m. 2 2017-158 Julia Shultz (resident) commented on the recent hiring of Assistant General Manager Barbre and threats of litigation made against the District for the cost of replacing landscape which was lost due to the emergency drought mandate. Jay Grewal (resident) spoke in favor of issuing a conservation credit and commented on his personal financial management experience. Mark Schock (resident) commented on the District's previous consideration of budget based rate structures and provided suggestions for the next water and sewer rate study. 7. CONSENT CALENDAR Director Hall made a motion, seconded by Director Miller, to approve the Consent Calendar. Motion carried 4-0-0-1 with Director Hawkins being absent. 7.1. Minutes of the Board of Directors Workshop Meeting Held June 8, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Regular Meeting Held June 13, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Payments of Bills, Refunds, and Wire Transfer Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$415,168.09. 7.4. Directors and General Manager Fees and Expenses Report for Fourth Quarter FY 2016/17 Recommendation: That the Board of Directors receive and file the Directors and General Manager Fees and Expenses Report for Fourth Quarter FY 2016/17. 8. ACTION CALENDAR 8.1. Authorized Officers for Investments Held at Pershing Staff explained that due to recent changes in personnel, a new resolution identifying employees who are authorized to act on behalf of the District pertaining to investments held at Pershing is required. Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 3 2017-159 Staff recommended the Board consider listing the Assistant General Manager in addition to the General Manager as authorized employees should the Finance Manager/Treasurer not be available. Discussion regarding the District's investment policy and associated internal controls followed. The Board voted 4-0-0-1 on a Roll Call with Director Hawkins being absent, to adopt Resolution No. 17-27 authorizing the General Manager, Assistant General Manager and Finance Manager to act on behalf of the District relating to District investments held at Pershing, LLC and rescinding Resolution No. 14-12. 8.2. AB 1000 — Water Conveyance: Use of Facility With Unused Capacity (Nederhood) Staff reviewed the components and status of the bill, including issues of concern for the District. Staff also identified agencies supporting and opposing the bill and recommended the Board consider adopting an "oppose" position. Ben Parker (resident) commented on potential conflicts of interest in association with Assistant General Manager Barbre's elected positions and differing political opinions that may exist or arise between agencies. Assistant General Manager Barbre noted he had recused himself from the vote when this matter was considered by MWDOC's Board of Directors. Vice President Nederhood explained why he requested this matter to be placed on the agenda. Pat Nelson (resident) spoke in favor of opposing the bill. Julia Schultz (resident) thanked Vice President Nederhood for his efforts in relation to this matter. Terry Harris (resident) spoke in favor of taking no stand on the bill. Laer Pearce, consultant for Cadiz, Inc., commented on the number of agencies opposing the bill. He also explained the impact on the Cadiz Valley water project and the precedent that would be set should the bill pass. Minutes of the YLWD Board of Directors Regular Meeting Held August 8,2017 at 6:30 p.m. 4 2017-160 Director Hall made a motion, seconded by Director Nederhood, to adopt an "oppose" position and instruct the General Manager to communicate the position of the Yorba Linda Water District to the Santa Margarita Water District, and to empower the President or General Manager to sign any coalition letters in opposition to AB 1000. Motion carried 4-0-0-1 with Director Hawkins being absent. 8.3. Adjusting Time of Regular Meetings and Establishing Time for Adjournment (Miller) President Miller explained that this matter had been placed on the agenda in order to discuss potentially adjusting the commencement time of regular meetings and establishing a set time for adjournment. He noted the City of Yorba Linda's existing policy to end regular Council meetings at or before 11:00 p.m. Pat Nelson (resident) spoke against adjusting the time of regular meetings earlier than 6:30 p.m. and in favor of the Board considering the continuation of any remaining items on the agenda should the meeting last to 11:00 P.M. Councilmember Beth Haney indicated she would not be able to attend the District's regular meetings if they were scheduled earlier than 6:30 p.m. and would have to relinquish her appointment as the City's primary delegate to YLWD. Discussion followed regarding the current commencement time for regular meetings, the continuation of items on the agenda should the meeting be adjourned prior to consideration, and limiting the total time of external presentations. Director Nederhood made a motion, seconded by Director Jones, to keep the commencement time for closed sessions at 5:30 p.m. and regular meetings at 6:30 p.m. and to continue items not considered by 11:00 p.m. to the next regular meeting. Brief discussion ensued regarding the handling of time sensitive items if not considered by the time of adjournment, leaving the policy as is, placing time sensitive items at the beginning of the agenda, considering items out of order, and extending the time of adjournment if necessary. Motion carried 4-0-0-1 with Director Hawkins being absent. President Miller noted that the Board of Directors Policies and Procedures Manual would need to be amended to reflect this change. Minutes of the YLWD Board of Directors Regular Meeting Held August 8,2017 at 6:30 p.m. 5 2017-161 9. DISCUSSION ITEMS 9.1. Update of Procurement and Purchasing Policy Staff provided an overview of the major sections contained in the current policy and suggested revisions, including integration of best management practices as recommended by the Government Finance Officers Associations. The revisions would also provide staff with additional flexibility while at the same time enhancing accountability. Discussion followed regarding the suggested procurement limits and contract signature authority, including those of the General Manager as compared to other local water agencies, and the process for initiating and approving purchase orders. Staff was instructed to include the procurement limits of comparative agencies with the next agenda report for this matter. Jeff Decker (resident) commented on the District's competitive bidding practices and spoke in favor of hiring a purchasing agent. Brief discussion followed regarding the competitive bid and selection process for construction of the Fairmont Booster Pump Station Upgrade Project and various sections of the revised policy. Cristy Parker (resident) commented on provisions against dividing contracts in order to avoid exceeding procurement limits, and the procurement process for professional services totaling more than $75K. Discussion ensued regarding YLWD's status as a County Water District and associated exemptions relative to the competitive bid process and sole source procurement; reviewing the policy on an annual basis; compiling a report of the number of sole source contracts awarded during the last few years grouped by current procurement limits; removing references to specific credit card types; identifying procedures for verifying contractor references; defining non-discretionary purchases where referenced; requiring General Manager or Assistant General Manager authorization for exemptions from the competitive bid process for contracts not requiring Board approval; and providing the Board with formal notification of such exemptions for contracts totaling more than $25K. Minutes of the YLWD Board of Directors Regular Meeting Held August 8,2017 at 6:30 p.m. 6 2017-162 9.2. Timeline for Updating Strategic Plan (Nederhood) The Board discussed scheduling monthly workshop meetings through December in order to update the District's strategic plan. They also discussed potential areas of focus and complimentary documents such as the Asset Management and Capital Improvement Plans. Terry Harris (resident) spoke in favor of involving the public in the strategic planning process. Staff noted that a Request for Proposals (RFP) had been issued for updating the District's Asset Management Plan. Completion is expected end of February 2018. The Board determined to schedule the first workshop meeting the end of August to discuss the scope of the new strategic plan, whether or not to utilize the services of a facilitator, and the schedule for future workshop meetings. Jay Grewal (resident) spoke in favor of reviewing the strategic plan every other year and utilizing the document to engage and inform the public. 9.3. Development of Water Shortage and Drought Response Plan (Jones) Director Jones reviewed some key points he had prepared regarding the utilization of a budget based rate structure in the future development of a drought response plan. Julia Schultz (resident) spoke against the utilization of budget based rate structures and commented on the potential negative impact on water rates. Terry Harris (resident) spoke in favor of implementing a budget based rate structure on a permanent basis instead of temporarily during times of drought. Pat Nelson (resident) spoke against the utilization of budget based rate structures and commented on the difficulties of managing same. Jay Grewal (resident) suggested including a drought response component in the District's new strategic plan and spoke in favor of controlling the water rates. Ben Parker (resident) spoke in favor of including the gradual implementation of a budget based rate structure in the new strategic plan. Minutes of the YLWD Board of Directors Regular Meeting Held August 8,2017 at 6:30 p.m. 7 2017-163 Greg Shultz (resident) commented on the need for additional water storage infrastructure in the state and suggested water agencies create a coalition to address this matter with legislators. Discussion followed regarding the District's plan for addressing the drought prior to state-mandated conservation during the emergency declaration; Proposition 218 requirements for enabling the District to switch from a uniform to a budget based rate structure during times of water shortage and drought; alternative methods for encouraging water use efficiency, the potential for increased regulation associated with the state's long-term framework for conservation; and the District's associated data collection and analysis efforts. 9.4. Comparison of Retail Water Rates (Miller) Staff reviewed multiple reasons for differences between agencies retail water rates. David Ramocinski (resident) thanked for President Miller for including this matter on the agenda and expressed an interest in additional information regarding the differences in water rates between the District and City of Anaheim. Following discussion, staff offered to obtain this information for presentation at the next regular meeting. Jay Grewal (resident) suggested comparing both agencies fixed and variable costs. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports Vice President Nederhood shared his concerns related to potential increased regulation associated with the state's long-term framework for conservation. 10.2. General Manager's Report Each of the managers (or their designee) reported on activities within their respective departments. Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 8 2017-164 Assistant General Manager Barbre reported on the status of various administrative activities and presented the Board with a draft copy of a letter in support of Orange County Sanitation District's request for federal funding for the agency's Effluent Reuse Implementation Project. He also noted that the District had received a request for a letter supporting the candidacy of Association of California Water Agencies' Vice Chair Brent Hastey for the position of Chair in the upcoming election. 10.3. General Counsel's Report None. 10.4. Future Agenda Items and Staff Tasks Vice President Nederhood inquired as to the status of obtaining bids from ADP and similar vendors for outsourcing payroll and the preparation of an RFP for legal services. Director Hall requested staff enhance customer awareness of available rebate programs for the purchase of water efficient devices. Staff offered to provide a presentation regarding the District's conservation related activities and other local programs available to customers at a future meeting. Vice President Nederhood requested staff compile an employee turnover analysis for the previous four years. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) ■ Minutes of the meeting held July 27, 2017 at 4:00 were included in the agenda packet. ■ Next meeting is scheduled September 28, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) ■ Minutes of the meeting held June 12, 2017 at 4:00 p.m. will be provided when available. ■ Next meeting is scheduled September 18, 2017 at 4:00 p.m. at YL City Hall. Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 9 2017-165 11.3. Joint Agency Committee with City of Placentia (Miller/Nederhood) ■ Next meeting yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings. 12.1 MWDOC/OCWD Joint Planning Committee —July 26, 2017 (Nederhood/Jones) 12.2 OCSD Board — July 26, 2017 (Hawkins) 12.3. ISDOC Executive Committee —August 1, 2017 (Nederhood) 12.4. YL City Council —August 1, 2017 (Jones) 12.5. MWDOC Board —August 2, 2017 (Nederhood) 12.6. OCWD Board —August 2, 2017 (Jones) 12.7. WACO —August 4, 2017 (Jones/Miller/Nederhood) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from August 9 — October 31, 2017 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. YL Mayor's Prayer Breakfast— September 14, 2017 Director Hall made a motion, seconded by Director Miller, to approve Director attendance at this event if desired. Motion carried 4-0-0-1 with Director Hawkins being absent. 15. ADJOURNMENT 15.1. The meeting was adjourned at 10:04 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held August 8,2017 at 6:30 p.m. 10