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HomeMy WebLinkAbout2019-05-28 - Board of Directors Meeting Minutes 2019-047 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, May 28, 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 Marc Marcantonio, General Manager Phil Hawkins, Vice President Brett R. Barbre, Assistant 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 Bryan Hong, Principal Engineer Freddie Ojeda, Operations Superintendent Kaden Young, Senior Management Analyst ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP Sandra Jacobs, President, Santa Margarita Water District 4. ADDITIONS/DELETIONS TO THE AGENDA General Manager Marc Marcantonio requested that Item No. 7.4. be removed from the agenda and that Item No. 8.3. be considered before Item No. 8.1. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Comments from Candidates for OC LAFCO's Special District Regular and Alternate Representatives Minutes of the YLWD Board of Directors Regular Meeting Held May 28,2019 at 6:30 p.m. 1 2019-048 Sandra Jacobs, President of the Santa Margarita Water District, addressed the Board regarding her candidacy for Special District Regular Representative in the upcoming OC LAFCO election and requested the District's support. 5.2. Elected Official Liaison Reports None. 5.3. Federal and State Legislative Update Director of Public Affairs Pasquale Talarico expressed his appreciation for the support received during the District's open house. He then briefed the Board on recent legislative activities including Assembly Bill 217. 6. PUBLIC COMMENTS None. 7. CONSENT CALENDAR Director Nederhood requested to remove Item Nos. 7.1. and 7.5. from the Consent Calendar for separate action. Director Hawkins made a motion, seconded by Director Hall, to approve the remainder of the Consent Calendar (with the exception of Item No. 7.4.). Motion carried 5-0-0-0 on a Roll Call vote. 7.2. Directors' and General Manager Fees and Expenses Report for Third Quarter of Fiscal Year 2019 Recommendation: That the Board of Directors receive and file the Directors' and General Manager Fees and Expenses Report for Third Quarter of FYI 9. 7.3. Terms and Conditions for Water Service with LPPYL, Inc., 5091 Richfield Rd Ste A Recommendation: That the Board of Directors approve the Terms and Conditions for Water Service with LPPYL, Inc., 5091 Richfield Rd Ste A, Job No. 201924. Minutes of the YLWD Board of Directors Regular Meeting Held May 28,2019 at 6:30 p.m. 2 2019-049 7.4. Award nstr-actinn GGRrtroot for Ganrinn Verde and MffiGkel Lane 1W ateFli% Imnreyernents ReGOn9n9endation.- That the Bear-cl of Directors award the G0nStqiGtiGP G nh;Wt Agr GangTneVerde and Mn elLane Wate4ne /mnreyeTmontc to . 7.6. Water Development and Customer Service Fees Recommendation: That the Board of Directors approve Resolution No. 2019-XX adopting Water Development and Customer Service Fees and rescinding Resolution No. 18-19. 7.7. Sewer Development and Customer Service Fees Recommendation: That the Board of Directors approve Resolution No. 2019-XX adopting Sewer Development and Customer Service Fees and rescinding Resolution No. 18-20. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 7.1. Payments of Bills, Refunds, and Wire Transfers Staff responded to questions from Director Nederhood regarding multiple items on the Check Register. Director Nederhood made a motion, seconded by Director Hall to ratify and authorize disbursements in the amount of $607,267.20. Motion carried 5-0-0-0. 7.5. Water Rates for Fiscal Year 2020 President Jones read a prepared statement regarding the purpose of the District's water rates. Julia Schultz, resident, spoke in favor of the recently approved water service rate adjustments and maintaining the District's infrastructure. Pat Nelson, resident, commented on social media postings associated with the District's recently approved water rates and the City of Fullerton's proposed water rate adjustments. Greg Schultz, resident, commented on the results of MWD's annual solar cup education program and spoke in favor of moderate regular water rate adjustments. Minutes of the YLWD Board of Directors Regular Meeting Held May 28, 2019 at 6:30 p.m. 3 2019-050 John Hansen, resident, spoke against the adoption of an additional 9% adjustment to the monthly water service charge in Fiscal Year 2021 and suggested the formation of another Citizens Advisory Committee should the Board consider doing so. Following brief comments on the recent water rate adjustment, Director Nederhood made a motion to adopt a 5% increase to the base charge effective July 1, 2019. President Jones indicated that the motion was out of order as the proposal would need to be agendized for a future meeting. Lengthy discussion followed regarding multiple topics associated with the District's finances and infrastructure. Director Hall made a motion, seconded by Director Miller, to adopt Resolution No. 2019-XX ratifying action taken to adjust water rates effective July 1, 2019 and implement any potential commodity adjustment by October 1, 2019, and rescinding Resolution No. 18-32. Motion carried 4-1-0-0 on a Roll Call vote with Director Nederhood voting No. 8. ACTION CALENDAR The following items were taken out of order. 8.3. Draft 2019 Water Quality Report Staff briefly reviewed the reporting requirements and results. Director Hawkins made a motion, seconded by Director Miller, to approve the 2019 Water Quality Report and instruct staff to make it available on the District's website pursuant to State and Federal law regarding electronic delivery. Motion carried 5-0-0-0. The Board commended Principal Engineer Bryan Hong for his work with the District. 8.1. Sewer Rates for Fiscal Year 2020 Staff summarized the cost of service analysis process and highlighted previous and planned major expenditures from Sewer Reserve funds. Discussion followed regarding the Water and Sewer Rate Study and model prepared by Raftelis Financial Consultants. Minutes of the YLWD Board of Directors Regular Meeting Held May 28,2019 at 6:30 p.m. 4 2019-051 Director Nederhood made a motion, seconded by Director Hawkins, to adopt Resolution No. 2019-XX adjusting sewer rates effective July 1, 2019 and rescinding Resolution No. 18-22. Motion carried 5-0-0-0 on a Roll Call vote. 8.2. Operating Budget for Fiscal Years 2020 and 2021 (Financial Summaries) Staff explained that the budget had been prepared in line with maintaining the District's AA bond rating with Fitch. Staff also noted that the budget would be reviewed both mid-year and at year-end each fiscal year. Ben Parker, resident, spoke against the proposed 9% adjustment to the monthly water service charge in Fiscal Year 2021 of the budget. Discussion continued regarding the proposed budget. Director Hall made a motion, seconded by Director Hawkins, to approve Resolution No. 2019-XX adopting the Operating Budget for Fiscal Years 2020 and 2021 (Financial Summaries) and rescinding Resolution No. 18- 23. Motion carried 4-1-0-0 on a Roll Call vote with Director Nederhood voting No. 8.4. Formation of Assessment District to Finance the Conversion of Customer Private Septic Systems to the District's Public Sewer System General Counsel Andrew Gagen provided a detailed presentation regarding the processes for forming a Community Facilities District (CFD) versus an Assessment District (AD). Mr. Gagen recommended the Board consider initiating the formation of an AD as a pilot program in order to evaluate community interest, associated costs, and resource requirements. Staff proposed a pilot project area near Oriente Drive and Danita Lane and outlined previous efforts to form a CFD or AD near Sandra Drive. John Koeller, resident, commented on staff's estimated costs for homeowners to connect to the District's sewer system. He also requested the Board consider including the area near Sandra Drive in the District's pilot program. Following further discussion, the Board directed staff to develop a plan including the District's estimated costs for formation of an AD in both project areas. Cristy Parker, resident, commented on District costs associated with the pilot program that may or may not be recouped. Minutes of the YLWD Board of Directors Regular Meeting Held May 28, 2019 at 6:30 p.m. 5 2019-052 9. DISCUSSION ITEMS The following items were deferred to the next regular meeting. 9.1. Draft Funding Alternatives for Critical Capital Improvement Projects (Jones) 9.2. Overview of Reserve Categories and Funding Levels (Jones) 9.3. Cost-Benefit Analysis of Electronic vs. Paper Billing (Nederhood) 9.4. Budget to Actual Reports for the Month Ending April 30, 2019 9.5. Cash and Investment Report for Period Ending April 30, 2019 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 General Manager Marcantonio displayed two videos highlighting Remotely Activated Snorkel Sites/Heli-Hydrants for the purposes of fighting wildfires. He inquired as to the Board's interest in conducting a similar pilot project at the Santiago Reservoir and noted that funding could be obtained by partnering with other government agencies and applying for Federal grants. It was the consensus of the Board that staff continue to explore the feasibility of this project. Mr. Marcantonio then briefed the Board regarding a request from CalWARN to assist Paradise Irrigation District with repairing meters, locating and purging service lines, etc. following the last year's wildfire. 10.3. General Counsel's Report None. 10.4. Future Agenda Items and Staff Tasks None. Minutes of the YLWD Board of Directors Regular Meeting Held May 28,2019 at 6:30 p.m. 6 2019-053 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Jones/Hawkins) ■ Meeting on May 23, 2019 at 4:00 p.m. was cancelled and will be rescheduled. 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 29 — July 31, 2019 The Board discussed rescheduling the regular meeting on June 9, 2019 as multiple people would be attending the AWWA conference. The Board determined to keep the meeting as scheduled and defer the discussion items not addressed during this meeting to the regular meeting on June 25, 2019. 13. ADJOURNMENT 13.1. The meeting adjourned at 9:56 p.m. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held May 28,2019 at 6:30 p.m. 7