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Director Memorandum 18-010

Date: January 16, 2018

Prepared By: Joseph B. Zoba, General Manager

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

Recommendation: No recommendation.

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.

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. 2018-xx which, if adopted
by the Board of Directors, would maintain the rate of compensation paid to board members at the
current rate of $147.56 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.
2018-xx 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
from $147.56 to $154.94 per day for each day’s attendance at meetings as defined in Section
1(d) of Ordinance No. 53-2007.

Financial Implications

On average, a board member typically seeks reimbursement for four to five meeting-days per
month out of the maximum of ten permitted meeting days per month.

Based on attending five meetings per month, the cost per board member at the current rate of
$147.56 per meeting-day is $737.80 per board member per month, or $8,853.60 per board
member per year. The maximum annual meeting reimbursement amount at ten meeting-days
per month would be $17,707.20 per board member, per year.

Yucaipa Valley Water District - January 16, 2018 - Page 219 of 287