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Home My WebLink About2017-10-24 - Board of Directors Meeting Minutes (B) 2017-216 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, October 24, 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. 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 Phil Hawkins, Director Gina Knight, HR/Risk and Safety Manager Brooke Jones, Director Art Vega, Information Technology Manager Javier Martinez, Water Production Superintendent DIRECTORS ABSENT Kelly McCann, Senior Accountant Andrew J. Hall, Director Annie Alexander, Executive Assistant ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Beth Haney, Councilmember, City of Yorba Linda Daphnie Munoz, Audit and Assurance Partner, White Nelson Diehl Evans 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports Councilmember Beth Haney commented on her attendance at a recent MWDSC infrastructure tour and noted the Yorba Linda State of the City was scheduled November 2, 2017. Minutes of the YLWD Board of Directors Regular Meeting Held October 24,2017 at 6:30 p.m. 1 2017-217 6. PUBLIC COMMENTS None. 7. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Nederhood, to approve the Consent Calendar. Motion carried 4-0-0-1 with Director Hall being absent. 7.1. Minutes of the Board of Directors Special Meeting Held September 12, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Regular Meeting Held September 12, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Minutes of the Board of Directors Special Meeting Held September 14, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.4. Minutes of the Board of Directors Special Meeting Held September 20, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.5. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$2,550,667.09. 7.6. Terms and Conditions for Sewer Service with Marzola, 5162 Mountain View Avenue Recommendation: That the Board of Directors approve the Terms and Conditions for Sewer Service with Marzola, 5162 Mountain View Avenue, Job No. 201732S. Minutes of the YLWD Board of Directors Regular Meeting Held October 24,2017 at 6:30 p.m. 2 2017-218 7.7. Amendment Two of the Well 21 Lease Agreement Recommendation: That the Board of Directors authorize approval and execution of Amendment Two of the Lease Agreement between the Orange County Water District and the Yorba Linda Water District for Warner Basin Complex — Well No. 21. 7.8. Brand Name Requirement for Pressure Regulating Station (PRS) Rehabilitation Phase 2 Project Recommendation: That the Board of Directors approve the Brand Name Requirement for the PRS Rehabilitation Phase 2 Project for the items as specified in staff's memorandum, namely ABB magnetic flow meters, Cla- Val pressure reducing valves, and Rosemont pressure transmitters. 8. ACTION CALENDAR 8.1. Audit Reports for Fiscal Year Ending June 30, 2017 Staff introduced Daphnie Munoz of White Nelson Diehl Evans. Staff also noted Vice President Nederhood's title had been corrected on page xi of the report. Ms. Munoz reviewed the auditor's report and noted the District's financial statements were presented fairly in all material respects in accordance with generally accepted accounting principles. She then responded to questions from the Board regarding the auditing team, depreciation and capitalization of assets, and the District's historical net position. Discussion followed regarding the District's investments held by Pershing, future consideration of transferring them to another safekeeper, and the auditor's process for reviewing warehouse operations. Director Hawkins made a motion, seconded by Director Jones, to receive and file the Yorba Linda Water District Comprehensive Annual Financial Report for the Fiscal Year Ending June 30, 2017 as corrected, the Report on Internal Control, and the Communication to Those in Governance Letter. Motion carried 4-0-0-1 with Director Hall being absent. 8.2. Pension Rate Stabilization Program and Other Post-Employment Benefits Funding Policy Staff explained the Board previously requested preparation of a policy for paying down the District's pension and other post-employment benefit liabilities. Minutes of the YLWD Board of Directors Regular Meeting Held October 24,2017 at 6:30 p.m. 3 2017-219 Brief discussion followed regarding scheduling a future workshop meeting to review investment strategies with Public Agency Retirement Services (PARS). Director Nederhood made a motion, seconded by Director Hawkins, to approve Resolution No. 17-33 adopting a Pension Rate Stabilization Program (PRSP) and Other Post-Employment Benefits (OPEB) Funding Policy for FY 18. Motion carried 4-0-0-1 on a Roll Call vote with Director Hall being absent. 8.3. Election for Appointment of Special District Representative to Orange County Redevelopment Agency Oversight Board Staff explained that the Orange County Local Area Formation Commission was conducting an election for the special district representative to the new formed Orange County Redevelopment Agency Oversight Board. Staff then explained the options available to the Board. The Board determined to postpone consideration of this matter until the next regular meeting. No Directors expressed an interest in being nominated as a candidate. Staff was instructed to invite the interested candidates to that same meeting. 8.4. Proposed Increased Assessments Affecting District Properties Located in Local Landscaping Zone L-5A of the City of Yorba Linda Street Lighting and Landscaping Maintenance District Staff explained the District had received assessment ballots for three parcels in this zone, one of which was for $0 and would not be counted. Staff note the Board had previously voted in favor of the proposed increased assessments in other zones. Director Hawkins made a motion, seconded by Director Jones, to vote in favor of the increased assessments for these parcels and authorize staff to complete and submit the ballots as required. Motion carried 4-0-0-1 with Director Hall being absent. 9. DISCUSSION ITEMS 9.1. Cash and Investment Report for Period Ending September 30, 2017 Staff noted the report had been revised, a copy of which was distributed during the meeting. Staff then reviewed key information contained in the report. Minutes of the YLWD Board of Directors Regular Meeting Held October 24,2017 at 6:30 p.m. 4 2017-220 9.2. Budget to Actual Reports for the Month Ending September 30, 2017 Staff reviewed the reports and touched on cumulative volumetric water revenue and variable expenses. The Board provided feedback to staff regarding data to be included in future charts. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports None. 10.2. General Manager's Report Assistant General Manager Barbre asked each of the managers or their designees to report on activities within their respective departments and reminded the Board of some upcoming events. 10.3. General Counsel's Report None. 10.4. Future Agenda Items and Staff Tasks Vice President Nederhood commented on resolving the issue with the District's investments held at Pershing and requested staff look into the performance of a third-party warehouse and inventory audit. Following brief discussion, staff was instructed to provide the Board with results of the cycle count for first quarter of FY18. President Miller suggested discussion of the PARS investment strategies take place during a regular meeting rather than a workshop meeting. Director Jones requested discussion of budget based rate structures at a future meeting. The Board discussed addressing this topic in conjunction with development of the strategic plan. Minutes of the YLWD Board of Directors Regular Meeting Held October 24,2017 at 6:30 p.m. 5 2017-221 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) ■ Next meeting is scheduled November 20, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) ■ Minutes of the meeting held September 18, 2017 at 4:00 p.m. were provided in the agenda packet. ■ Next meeting is scheduled December 18, 2017 at 4:00 p.m. at YL City Hall. 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 LAFCO — October 11, 2017 (Nederhood —As Needed) Director Nederhood did not attend this meeting. 12.2 WACO — October 13, 2017 (Miller/Nederhood) 12.3. YL City Council — October 17, 2017 (Hawkins) 12.4. MWDOC Board — October 18, 2017 (Nederhood) 12.5. OCWA Luncheon — October 18, 2017 (Miller) 12.6. OCWD Board — October 18, 2017 (Jones) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from October 25 — December 31, 2017 Minutes of the YLWD Board of Directors Regular Meeting Held October 24, 2017 at 6:30 p.m. 6 2017-222 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. OCWA Luncheon — October 18, 2017 OCSD State of the District — November 17, 2017 Director Hawkins made a motion, seconded by Director Jones, to ratify and/or approve Director attendance at these events. Motion carried 4-0-0-1 with Director Hall being absent. 15. ADJOURNMENT 15.1. The meeting was adjourned at 8:16 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held October 24,2017 at 6:30 p.m. 7