HomeMy WebLinkAbout2018-10-30 - Board of Directors Meeting Minutes 2018-166
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS WORKSHOP MEETING
Tuesday, October 30, 2018, 5:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 5:02 p.m.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Al Nederhood, President Marc Marcantonio, General Manager
Brooke Jones, Vice President Brett Barbre, Assistant General Manager
Andrew J. Hall John DeCriscio, Operations Manager
Phil Hawkins Delia Lugo, Finance Manager
J. Wayne Miller Gina Knight, HR/Risk and Safety Manager
Rosanne Weston, Engineering Manager
Annie Alexander, Executive Asst/Board Secretary
Kaden Young, Management Analyst
OTHER ATTENDEES
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
4. PUBLIC COMMENTS
None.
5. DISCUSSION ITEMS
5.1. 5-Year Forecast of District's Operating Budget
Staff provided an overview the following topics: key information
associated with Fitch Ratings' surveillance conducted November 2017;
operational costs which had been absorbed; operational cost efficiencies
which had been implemented; reserve policy targets and rating agencies'
metrics for maintaining an AA rating; and variables considered during the
process of evaluating the need for a potential rate adjustment.
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2018-167
Staff then reviewed multiple financial scenarios and the projected impact
on the District's water revenue, debt coverage ratio, reserve balances, and
credit ratings. Staff also requested the Board consider the development of
policies related to future rate adjustments and funding for capital
improvements, and the implementation of a 2-year budget cycle.
Staff then summarized key elements of the 5-year operating budget
forecast including proposed rate adjustments, total capital expenditures,
and the projected financial impact on average and high usage residential
customers. Staff also noted uncertainties associated with pending
legislation, water quality regulatory requirements, and environmental
conditions.
Staff then reviewed historical retail water consumption and system
demand, additional financial scenarios utilizing various rate adjustment
and capital expenditure options, historical operating and non-operating
water revenues, and parameters considered when projecting the need for
a rate adjustment.
Discussion followed regarding financing options for capital improvement
projects, the timing of and cost involved with conducting a water/sewer
rate study, development of an alternate water rate structure, and
potentially implementing rate adjustments effective January 1, 2019 and
customer notification requirements.
5.2. Historical Projected vs. Actual Revenue
Staff presented information on historical water production volume trends
including the impact of legislation, drought and precipitation, and the basis
for staff's projected water production volume for FY19.
Discussion continued regarding the potential implementation of rate
adjustments at the beginning of the year.
Director Hall left the meeting at 6:31 p.m.
Staff was instructed to prepare an action item for Board consideration at
the next regular meeting to consider a potential $0.10 pass-through
increase to the water usage (commodity) rate and a minimum 3% increase
to the monthly water service rate beginning January 1, 2019.
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2018-168
The following matters were not discussed.
L2, Rate Adjustment Methedelegy and P0liGY
6.4. Gapital Impr9ven ent Plan FundiRg PGliGY (Pay Go vs. Debt)
5f. lernenta-ti,,Ton of 2 voter Qr vudget Gy^cie
6. ADJOURNMENT
6.1. The meeting was adjourned at 6:33 p.m.
nnie Alexand r
Board Secretary
Minutes of the YLWD Board of Directors Workshop Meeting Held October 30,2018 at 5:00 p.m. 3