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HomeMy WebLinkAboutMinutes - EVWD Board of Directors - 06/10/2015 Approved July 8, 2015 EAST VALLEY WATER DISTRICT June 10, 2015 REGULAR BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 5:30 p.m. Mr. Wayne Brown led the flag salute. PRESENT: Directors: Carrillo, Coats, Coleman, Morales ABSENT: Director Shelton STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Tom Holliman, Engineering and Operations Manager; Justine Hendricksen, District Clerk; Eileen Bateman, Senior Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public SUPPLEMENTAL INFORMATION FROM THE GENERAL MANAGER REGARDING AGENDA ITEMS No supplemental information at this time. PRESENTATIONS a CEREMONIAL ITEMS No presentations Et ceremonial items at this time. PUBLIC COMMENTS Chairman Morales declared the public participation section of the meeting open at 5:31 pm. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Coats-Coleman) that the June 10, 2015 agenda be approved as submitted. Minutes: 06/10/15 etb ACCEPT AND FILE THE FINANCIAL STATEMENTS AS OF, AND FOR THE PERIOD ENDED APRIL 30, 2015 M/S/C (Coleman-Carrillo) that the Board accept and file the financial statements as of, and for the period ended April 30, 2015. DIRECTORS' FEES AND EXPENSES FOR MAY 2015 Vice Chairman Coats recommended pulling Item #2b from the consent calendar for discussion and approve Item #2a. Vice Chairman Coats noted that there were mistakes on Director Coleman's report; that Director Coleman entered 51.6 miles to Ontario Airport and 51.6 miles from Ontario Airport and no parking charges; he also noted that it is not in the best interest of the District to pay for the additional 51 .6 miles for Director Coleman's wife to take him home from the airport. He recommends that Director Coleman correct and resubmit his expense report. Director Coleman stated that the mileage was due to his wife taking him to the airport and returning home and then picking him up from the airport and going home, he also stated that the 51 .6 miles was for the miles on the vehicle and not to pay for his wife for his transportation; he stated that the Board should allow Legal Counsel time to review the Ordinance and provide direction as he doesn't want the board to vote in ignorance. He suggested that the Board take a break to allow Legal Counsel to review the Ordinance and respond accordingly. Legal Counsel stated that the payment of expenses is based upon what the Ordinance states for mileage reimbursement. Director Carrillo stated that he concurs with Vice Chairman Coats and that this is the appropriate action to take and receive further clarification of the Ordinance. Vice Chairman Coats stated that he agreed with Director Coleman; that the Board should not make a decision in ignorance; that this is the reason his motion is to pull Director Coleman's expense report and allow Legal Counsel time to review the Ordinance and bring back his recommendation to the Board at a future meeting. M/S/C (Coats-Carrillo) that the Board approve the Directors' fees and expenses for May 2015 with the exception of Director Coleman's expense report which will be reviewed by Legal Counsel and be brought to the Board for approval at a future meeting. Directors Carrillo, Coats, Morales voted yes. Director Coleman voted no. Director Shelton was absent. 2 Minutes: 06/10/15 etb APPROVE THE PROPOSED FY 2015-16 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET The General Manager/CEO provided information regarding the objectives of the budget; he stated that the District has embarked on a new set of Goals and Objectives, updated the Core Values and Vision of the organization and has adopted Agency Ideals and Endeavors which are incorporated throughout the budget. The Chief Financial Officer gave a brief presentation of the proposed operating budget and Capital Improvement Program and reviewed Budget factors including the California Drought, Recycled Water Facility, Conservation Program, Budget Based Water Rates, Transparency and Accountability, Labor and Benefits, Capital needs of the District, water production projections, FY 2014-15 and FY 2015-16 Revenue Comparisons, District- wide expenses and District cost distribution. Chairman Morales requested clarification regarding the transfer of $464,000 from reserves for funding the sewer capacity project. The General Manager/CEO stated that the District's Wastewater Master Plan identified deficiencies in the conveyance system; that with the large amount of proposed development in the City of Highland the District's staff has identified small enhancements to the system that would enable the conveyance system to support needs of the Recycled Water Center and continue to meet the demands of the Governor's conservation mandates. He stated that this project will be funded through capital expenses and temporary reserve funding which will be replenished by impact fees from future development. The Chief Financial Officers provided information regarding Capital Investments including funds for IT hardware, Engineering software, Engineering Tools, two trucks and a Hydro Excavator. The Engineering and Operations Manager provided information regarding the District's Capital Improvement Projects including Automated Metering Infrastructure, Upper Zone Booster, Canal Zone Reservoir, Main Replacements, Sewer Capacity Improvements, and the Recycled Water Center; he noted that staff is pursuing grants and loans to fund these projects. The General Manager/CEO addressed the concerns of the Board regarding the Automated Metering Infrastructure; that route books will be defined and the layout of the plan will be consistent with grant requirements. He also stated that the system will allow customers to view their daily water consumption, identify usage by time, assist adhering to their monthly water budget allotment and assist with water conservation; that the District is waiting for final approval of grant funding to allow this project to move forward at no cost to rate payers. The General Manager/CEO stated that a member of the public identified some discrepancies in the budget in regards to the number of authorized and funded positions; that the information provided today is displayed accurately for the public with the 3 Minutes: 06/10/15 etb correct number of authorized and funded positions; that the discrepancy was due to part-time and temporary positions being included. He expressed his appreciation for the public's comments and to the Board and staff for their involvement in the budget process. Director Carrillo stated that he recognizes the significant challenges that staff has in the development of the budget with state mandates and reduction in sales. He stated that as we look to the future and to continue to conserve, this budget is fair and reasonable. He expressed his appreciation for the revenue stability in order for the Capital Improvement Project Program to meet the needs of water delivery. Chairman Morales read into the record an email from Director Shelton as follows: "Due to a family event planned months ago, I will be out of state for the June 10, 2015 Board meeting. I am impressed by the work of the entire staff at East Valley Water District in the preparation of the Draft Budget 2015-2016. Their attendance at the Public Meeting on June 3, 2015 showed their dedication to the work that was done on the Draft Budget and their preparation for our future growth and continued maintenance of all East Valley Water District water conveyance equipment. Serving as a Board Member it is a privilege and honor to support my fellow Board Members in approval of this Budget Fiscal Year 2015/2016. Thank you, Nanette Shelton." Director Coleman stated that he is glad that staff was able to dedicate so much time and effort preparing the budget and that they were conscientious in gathering the details and putting forth the information to make it understandable and useful. Vice Chairman Coats stated that staff went above and beyond in putting this budget together and appreciates the fact that the budget shows that the District is committed to total transparency; that this document is readily available for anyone to see exactly where we are spending rate payer's money. He also stated that the District will continue to do as much as we can to improve aging infrastructure for the future of the District. Chairman Morales stated that the Board and staff recently completed an important process and adopted the District's Vision, Core Values and Agency Ideals and Endeavors that are linked to the General Manager/CEO's Goals and Objectives He also stated that the previous budget received a Distinguished Budget Presentation Award and that this budget is a great accomplishment and is confident that this budget will raise the bar. He expressed his appreciation to staff for the transparency and clear definition of the budget. M/S/C (Coats-Carrillo) that the Board approve the proposed FY 2015-16 Operating and Capital Improvement Program Budget. 4 Minutes: 06/10/15 etb RESOLUTION 2015.10 - A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT IN RECOGNITION OF MARTHA T. DURAN'S TWENTY-FIVE YEARS OF SERVICE The Chairman of the Board presented the resolution to Ms. Duran in recognition of her 25 years of service with East Valley Water District. M/S/C (Coleman-Coats) that the Board adopt Resolution 2015.10. RESOLUTION 2015.13 - SUPPORT PLACING IN NOMINATION JAMES MORALES JR. A MEMBER OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES (ACWA) REGION 9 BOARD MEMBER The General Manager/CEO provided a brief overview of ACWA Region 9 and stated that the election will be held in August and ACWA is seeking members who are interested in filling a Board Member position for the 2016-17 term. M/S/C (Coats-Carrillo) that the Board adopt Resolution 2015.13. AUTHORIZE THE DISTRICT TO ENTER INTO AN AGREEMENT WITH CANNON ENGINEERING FOR ENGINEERING CONSULTING AND DESIGN SERVICES FOR THE CITY CREEK SEWER MANHOLE RELOCATION PROJECT The Engineering and Operations Manager provided a brief update of the project which included: manhole relocation, reconstruction, redesign of the project, proposal review including an evaluation matrix based on the capacity of the team to complete the work, demonstrated qualifications, project management experience and approach to the project. M/S/C (Coats-Coleman) that the Board authorize the District to enter into an agreement with Cannon Engineering for engineering consulting and design services for the City Creek sewer manhole relocation project. BOARD OF DIRECTORS REPORTS Director Coleman reported on the following: he attended the City of Highland meeting on June 9th and the items discussed included information regarding a storm drain and pump station near the 210 freeway and its benefits to City Creek. Director Carrillo reported on the following: he attended the District's budget workshop last week, attended the East Valley Association of Realtors meeting and the items discussed included a legislation briefing, the District's budget based rates, drought updates and that he and Chairman Morales were invited to sit on a water panel scheduled for July 8, 2015. Vice Chairman Coats reported on the following: he attended the SBVMWD Press Conference on June 1st, the items discussed included new restrictions from the Governor; attended the SBVMWD meeting on June 2' where they discussed the 5 Minutes: 06/10/15 etb submission of the wash plan by the Conservation District and grant funds for SAWPA; he attended the CSDA meeting regarding budget trailer bill 825 regarding a revised legislative and regulatory platform for failing water systems; on June 1st Valley District will hold a press conference regarding new regulations on water conservation, and meeting conservation requirements in order to continue to obtain grant funding for projects and a recycled water policy for the region. Director Shelton was not in attendance. Chairman Morales had no reports at this time. Information only. GENERAL MANAGER/CEO REPORTS • DROUGHT UPDATE Ms. Malloy, Public Affairs/Conservation Manager, provided information regarding the current conditions of the drought and the District's involvement in the proposed Trailer Bills regarding the use of penalty fees; she reported on the continued need for conservation measures, continued community involvement with conservation efforts to assist the District in reaching its target goal of 28%. She also reviewed the District's Turf Removal Program and stated that the District has received 50 applications to participate in the program. The General Manager/CEO reported on the following: that on June 2nd, staff met with the new North Fork attorney, Ms. Michele Staples; that tomorrow he will be providing a presentation and District overview to the retired federal employees group; that there is a Conservation workshop this Saturday to discuss irrigation drip systems and the Annual North Fork Tour is scheduled for Thursday, June 18th He also provided information regarding the District's headquarters facility use to date including a Quinceanera and a 50th wedding anniversary party. Information only. LEGAL COUNSEL REPORT Legal Counsel stated that the District had a very productive meeting with the North Fork attorney and Mr. Kiel; that there will be upcoming Trailer Bills dealing with the drought issues that will affect the District and conservation efforts. Information only. BOARD OF DIRECTORS COMMENTS Director Coleman stated that in looking at his expense report, he charged 51 .6 miles each way to go to and from the airport which was provided by MapQuest. He noted that Director Shelton claimed 55 miles and $36 for parking; he stated that if you take the $36 parking fee and multiply it by her rate per miles it comes out to be 120.45 miles so he 6 Minutes: 06/10/15 etb drove in his round trip 17.25 miles less than what Director Shelton did and saved $9.66 in an effort on his part to save the District money and trying to be physically and fiscally responsible to what is available; that if you look at the mileage on his expense report, he spent less than other people who have mileage on their expense report and parking charges because he didn't park; the parking was $36 and that amounts to 65.45 miles and his was only 51 .6 miles, he stated that he was being responsible and honest and dedicated to the economic well-being of the District and that's why his mileage was round trip and for those who wonder how much money he was making off of this, that $9.66 to have his wife take him to and from the airport is considerably less than what she makes at her job, that the dollar figures is his effort to be fiscally responsible and to save EVWD money and he is not trying to gouge the District. Vice Chairman Coats congratulated the General Manager/CEO on his recent marriage. Chairman Morales provided information regarding the Director's Expenses submission; that the reports are due on Tuesday at noon the week prior to the Board Meeting. He stated that Board meetings are not the time to dissect policy and that is the reason why item #2b was bifurcated from the consent calendar for discussion. He provided his recommendation in moving forward with the expense submission process and instructed staff to adhere to an absolute date and time of noon on Tuesday the week prior to the scheduled meeting; he also requested staff to send automatic reminders 24 hours in advance of the reports being due. ADJOURN The meeting adjourned at 7:02 p.m. Jame orates, Jr., Chairman John J. Mura, Sec tart' 7 Minutes: 06/10/15 etb I I I