Page 30 - Yucaipa Valley Water District

Director Memorandum 17-003

Date: January 3, 2017

Prepared By: Joseph Zoba, General Manager

Subject: Reimbursement Policy and Compensation Paid to Members of the Board of
Directors Pursuant to Assembly Bill No. 1234

Recommendation: That the Board adopts Resolution No. 2017-03 and takes no further
action which will increase the meeting reimbursement fee from $140.72
to $147.56 per day for each day’s attendance at meetings as defined in
Section 1(d) of Ordinance No. 53-2007 and Resolution No. 2017-03.

On March 21, 2007, the Board adopted Resolution No. 10-2007 and Ordinance No. 53-2007.
These actions updated the policy of reimbursement and compensation paid to the members of
the Board of Directors in a manner consistent with Assembly Bill No. 1234. Both the resolution
and ordinance are attached for your review.

On August 3, 2016, the Board of Directors adopted Resolution No. 2016-21 Updating the Policy
for Reimbursement of Actual and Necessary Expenses of the Board of Directors. This resolution
has been updated to include medical benefit compensation for board members so the
compensation paid to members of the Board of Directors are included in one resolution. The
updated resolution is attached as Resolution No. 2017-03 and should be adopted by the Board
of Directors.

Pursuant to the governing ordinances and resolutions, the Board of Directors is requested to
make a decision regarding the rate of compensation received by board members for attending
District related meetings and functions. Based on the reimbursement and compensation policy,
the Board has two alternatives to address the rate of compensation.

Alternative 1 – No Director Fee Increase. Attached is Resolution No. 2017-04 which, if adopted
by the Board of Directors, would maintain the rate of compensation paid to board members at the
current rate of $140.72 per day for each day’s attendance at meetings as defined in Section 1(d)
of Ordinance No. 53-2007. This daily rate is not to exceed ten days per month.

Alternative 2 – Automatic Director Fee Increase. By not taking action (procedurally this is
accomplished by no motion for action being made at the board meeting, or by Resolution No.
2017-04 failing to be approved), then provision in Section 2 of Ordinance No. 53-2007 will apply
which states, “…each calendar year following the adoption of this Ordinance, the compensation
which may be received by members of the Board of Directors shall automatically be increased by
5% per calendar year beginning in January 2008, unless the Board of Directors by resolution
elects not to receive an increase. Action by the Board of Directors to make such an election not
to receive an increase in any one year will not affect the automatic increase the following calendar
year”. Therefore, by taking no action compensation paid to board members will be increased

Yucaipa Valley Water District - January 3, 2017 - Page 30 of 120