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Home My WebLink About2019-05-14 - Board of Directors Meeting Minutes 2019-041 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, May 14, 2019, 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 Brooke Jones, President Brett R. Barbre, Asst General Manager Andrew J. Hall John DeCriscio, Operations Manager J. Wayne Miller Gina Knight, Human Resources/Risk Manager Al Nederhood Delia Lugo, Finance Manager Pasquale Talarico, Director of Public Affairs Rosanne Weston, Engineering Manager Annie Alexander, Executive Asst/Board Secretary Vivian Lim, Human Resources Analyst Javier Martinez, Production Superintendent Kaden Young, Senior Management Analyst DIRECTORS ABSENT ALSO PRESENT Phil Hawkins, Vice President Andrew Gagen, General Counsel, Kidman Gagen Law LLF 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 May 14,2019 at 6:30 p.m. 1 2019-042 5.2. Federal and State Legislative Update Director of Public Affairs Pasquale Talarico briefed the Board on the status of Senate Bills 669, 414, and 200. Brett Barbre, in his capacity as Director for the Metropolitan Water District of Southern California (MWD) and President for Municipal Water District of Orange County (MWDOC), commented on the status of the California WaterFix and noted that Governor Gavin Newsom was pursuing a single tunnel rather than two. 6. PUBLIC COMMENTS Pat Nelson, resident, commented on recent developments associated with the California WaterFix. 7. CONSENT CALENDAR Director Nederhood requested to remove Item No. 7.3. from the Consent Calendar for separate action. Director Hall made a motion, seconded by Director Miller, to approve the remainder of the Consent Calendar. Motion carried 4-0-0-1 with Director Hawkins being absent. 7.1. Minutes of the Board of Directors Special and Regular Meetings Held March 26, 2019 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Special and Regular Meetings Held April 9, 2019 Recommendation: That the Board of Directors approve the minutes as presented. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 7.3. Payments of Bills, Refunds, and Wire Transfers Staff responded to questions from Director Nederhood regarding multiple items on the Check Register. Minutes of the YLWD Board of Directors Regular Meeting Held May 14,2019 at 6:30 p.m. 2 2019-043 Director Nederhood requested an item on a future agenda to discuss the cost-benefit of electronic versus paper billing. Brief discussion regarding associated costs followed. Director Nederhood made a motion, seconded by Director Jones, to ratify and authorize disbursements of April 23, 2019 and for May 14, 2019 in the amount of $2,003,276.36. Motion carried 4-0-0-1 with Director Hawkins being absent. Julia Shultz, resident, spoke against charging customers for receiving a paper bill. 8. ACTION CALENDAR 8.1. Nominations for Orange County Local Area Formation Commission (LAFCO) Regular and Alternate Special District Member Seats Staff briefly explained the ballot process and listed the nominated candidates to date. No Directors expressed an interest in being nominated. Director Miller made a motion, seconded by Director Hall, to designate Director Jones and Director Hawkins to serve as the District's primary and alternate voting representatives, respectively, in the upcoming OC LAFCO election for the Regular and Alternate Special District Member seats. Motion passed 4-0-0-1 with Director Hawkins being absent. 8.2. Request from Mesa Water District for Financial Contribution to Support Advocacy Efforts Related to South Coast Air Quality Management District's (SCAQMD) Proposed Amended Rule (PAR) 1403 Staff outlined the request and responded to questions from the Board regarding the benefit to the District. Brief discussion followed and no action was taken on this matter. 8.3. Request from Municipal Water District of Orange County (MWDOC) for Financial Contribution to Conduct Financial Analysis for Small Non- Compliant Drinking Water Systems Staff summarized the request and did not recommend the District make a contribution. Following brief discussion, Director Miller made a motion to deny the request. Motion failed for lack of a second. Minutes of the YLWD Board of Directors Regular Meeting Held May 14, 2019 at 6:30 p.m. 3 2019-044 8.4. Request from California Association of Sanitation Agencies (CASA) Education Foundation for Donation to Support Scholarship Program Staff explained the request and responded to questions from the Board regarding the benefit to the District. Director Miller stated that he would need to abstain from voting on this matter as he contributed to a separate scholarship program. Additional discussion followed and no action was taken on this matter. 8.5. Draft Operating Budgets for Fiscal Years 2020-21 Staff presented multiple water rate adjustment scenarios, including the impact on the District's debt covenant ratio, reserve balances, and days in cash requirements. Lengthy discussion ensued regarding the proposed rate adjustment percentage and effective date. President Jones requested a future agenda item to discuss debt-funding alternatives for critical Capital Improvement Projects. Julia Shultz, resident, commented on the proposed rate adjustment percentage and effective date. Director Hall made a motion, seconded by Director Miller, to approve and adopt a 9% increase to the base charge, effective July 1, 2019, and any potential commodity rate adjustment by October 1, 2019. Motion passed 3-1-0-1 with Director Nederhood voting No and Director Hawkins being absent. 9. DISCUSSION ITEMS 9.1. Draft Capital Improvement Plan for Fiscal Years 2020-24 Staff reviewed the draft plan and highlighted the projects identified as most critical. The following item was taken out of order. 9.5. Status of Operations Activities Staff reported on the status of multiple well maintenance projects. Minutes of the YLWD Board of Directors Regular Meeting Held May 14,2019 at 6:30 p.m. 4 2019-045 9.2. Capital Asset Planning Policy Staff outlined the draft policy and explained its purpose. Additional revisions are expected and will be presented to the Board at a future meeting. Staff reviewed key information contained in the following financial reports. 9.3. Unaudited Financial Statements for Third Quarter of Fiscal Year 2019 9.4. Cash and Investment Report for Period Ending March 31, 3029 The following item was deferred to the next regular meeting. 9.6. Status of Community Facilities Districts / Assessment Districts for Connecting Customers with Septic Tanks to District's Wastewater Collection System (Jones) 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports ■ Intergovernmental Meetings, Conferences, and Events The Directors noted their attendance at the listed meetings and events. 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. He then commented on Fitch Ratings' new water and sewer rating criteria and a 2014 report issued by the US Senate Committee on Environment and Public Works. 10.3. General Counsel's Report None. 10.4. Future Agenda Items and Staff Tasks Director Nederhood requested staff promote the District's electronic billing service. Minutes of the YLWD Board of Directors Regular Meeting Held May 14,2019 at 6:30 p.m. 5 2019-046 Greg Schultz, resident, commented on MWD's annual solar cup education program. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Jones/Hawkins) ■ Minutes of the meeting held March 28, 2019 at 4:00 p.m. were included in the agenda packet. ■ Next meeting is scheduled May 23, 2019 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Jones/Hawkins) ■ Next meeting is scheduled June 17, 2019 at 4:00 p.m. at Yorba Linda City Hall. 11.3. Joint Agency Committee with City of Placentia (Jones/Hawkins) ■ Next meeting is yet to be scheduled. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from May 15 — June 30, 2019 The Board may no changes to the activity calendar. 13. ADJOURNMENT 13.1. The meeting adjourned at 9:29 p.m. �' Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held May 14,2019 at 6:30 p.m. 6