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HomeMy WebLinkAbout2009-08-27 - Board of Directors Meeting Agenda Packet Yorba Linda eater District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, August 27, 2009, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage Ric Collett 4. ADDITIONS/DELETIONS TO THE AGENDA 5. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 6. SPECIAL RECOGNITION 6.1. Introduce Cindy Navaroli, Interim Finance Director 6.2. Introduce Anthony Manzano, Senior Project Manager 7. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 7.1. Conference with Labor Negotiators Pursuant to Section 54956.7 of the California Government Code Agency Designated Representatives: Ken Vecchiarelli Pat Grady Gina Knight Richard Kreisler Employee Organization: Yorba Linda Water District Employees Association 8. CONSENT CALENDAR All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, staff, or public requests further consideration. 8.1. Minutes of the Regular Board of Directors Meeting Held August 13, 2009 Recommendation: That the Board of Directors approve the minutes as presented. 8.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,091,907.02. 8.3. Progress Payment Number 2 for the Zone Reconfiguration Project Recommendation: That the Board of Directors approve Progress Payment No. 2 in the net amount of $215,217.79 to Ken Thompson, Inc. for construction of the Zone Reconfiguration Project, Job No. 200710. 8.4. Progress Payment No. 3 for Construction of the Hidden Hills Reservoir Project Recommendation: That the Board of Directors approve Progress Payment No. 3 in the net amount of $53,937.00 to Pacific Hydrotech Corporation for construction of the Hidden Hills Reservoir Project, Job No. 200028. 8.5. Proposed Payment Plan for Grandview Sewer Connection Recommendation: That the Board of Directors approve the payment of the $9,000 balance due by Mr. Ante Marovic for the sewer connection to 5551 Grandview Avenue in nine monthly installments of $1,018.75 each, with the first payment due within 25 days following Board approval, and subsequent payments due each month thereafter until paid in full. Further, if monthly payments are not made when due, in the amount of $1,018.75 or more, the unpaid balance will be added to the owner's subsequent water bill for payment. 9. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 9.1. 2009 Water Rate Report Recommendation: That the Board of Directors receive and file the 2009 Water Rate Report. 9.2. Draft Responses to 2009 Grand Jury Reports Recommendation: That the Board consider approval of the Grand Jury responses and authorize the President to execute the responses on behalf of the District. 9.3. Letter of Support for AB 1506 Recommendation: That the Board of Directors discuss and consider supporting AB 1506. Should the Board decide to offer support, it is recommended the President be authorized to execute correspondence to Assemblyman Joel Anderson in support of the assembly bill. 9.4. Nominations for Association of California Water Agencies (ACWA) President and Vice President Recommendation: That the Board of Directors discuss and consider nominations for ACWA President and Vice President. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report 10.2. Directors' Reports 10.3. General Manager's Report 10.4. General Counsel's Report 10.5. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS 11.1. Executive Administrative-Organizational Committee (Summerfield/Mills) Alternate: Collett Minutes of meeting held August 18, 4:00 p.m. Meeting scheduled for September 15, 4:00 p.m. has been rescheduled to September 16, 4:00 p.m. 11.2. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills • Meeting scheduled for September 8, 4:00 p.m. 11.3. Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summerfield • Meeting scheduled for September 14, 4:00 p.m. 11.4. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage • Meeting scheduled for September 3, 4:00 p.m. 11.5. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong • Meeting scheduled for September 1, 4:00 p.m. 11.6. MWDOC/OCWD Ad Hoc Committee (Mills/Collett) Alternate: Summerfield • Meeting scheduled for September 22, 4:00 p.m. 11.7. City of Placentia Ad Hoc Committee (Beverage/Vecchiarelli) • Meeting scheduled for September 17, 4:00 p.m. 11.8. Citizens Advisory Committee Minutes of meeting held August 24, 8:30 a.m. (To be provided at the meeting.) Meeting scheduled for September 28, 8:30 a.m. 11.9. Revenues and Rates Ad Hoc Committee (Collet/Mills) • Meeting to be scheduled. 12. INTERGOVERNMENTAL MEETINGS 12.1. Yorba Linda City Council, August 18 (Armstrong) 12.2. MWDOC Board, August 19 (Staff) 12.3. OCWD Board, August 19 (Staff) 12.4. Yorba Linda Planning Commission, August 26 (Summerfield) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from August 28, 2009 thru September 30, 2009 14. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 14.1. Conference with Legal Counsel - Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: Marc vs. YLWD (Orange County Superior Court - Case No. 00122904) Name of Case: Itani, et al vs. YLWD (Orange County Superior Court - Case No. 00124906) Name of Case: Johnson, et al vs. YLWD, et al (Orange County Superior Court - Case No. 00125994) 15. ADJOURNMENT 15.1. The next regular meeting of the Board of Directors will be held September 10, 2009 at 6:30 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 8.1 AGENDA REPORT Meeting Date: August 27, 2009 Subject: Minutes of the Regular Board of Directors Meeting Held August 13, 2009 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name: Description: Type: 081309 BOD - Minutes.doc BOD Mtg Minutes 08/13/09 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING August 13, 2009 1. CALL TO ORDER The August 13, 2009 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 8:30 a.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT John W. Summerfield, President Ken Vecchiarelli, General Manager William R. Mills, Vice President Pat Grady, Asst General Manager Paul R. Armstrong Steve Conklin, Engineering Manager Michael J. Beverage Lee Cory, Operations Manager Ric Collett Diane Cyganik, Finance Director Annie Alexander, Executive Secretary 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Vecchiarelli requested to remove Item No. 8.3. from the agenda as there was no new progress to report. This item would be discussed at the Executive- Administration-Organizational Committee meeting on August 17th instead. On a motion by Director Mills, seconded by Director Collett, the Board voted 5-0 to remove Item No. 8.3. from the agenda. 5. PUBLIC COMMENTS None. 6. CONSENT CALENDAR On a motion by Director Beverage, seconded by Director Mills, the Board voted 5-0 to approve the Consent Calendar. Director Beverage abstained from voting on Check No. 52091 of Item No. 6.2. as the vendor was a source of income. 6.1. Minutes of the Regular Board of Directors Meeting Held July 23, 2009 Recommendation. That the Board of Directors approve the minutes as presented. 6.2. Payment of Bills, Refunds, and Wire Transfers Recommendation. That the Board of Directors ratify and authorize disbursements in the amount of $3,446,034.58. 6.4. Progress Payment No. 15 for the Highland Reservoir Replacement Project Recommendation. That the Board of Directors approve Progress Payment No. 15 in the net amount of $241,974.32 to Schuler Engineering Corporation and 10% retention of $26,886.04 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 6.4. Terms and Conditions for Water Sewer Service with Dentino Properties Recommendation. That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Dentino Properties, Job No. 200913. 6.5. Asset Management Plan Recommendation. That the Board of Directors authorize execution of a Professional Services Agreement with Carollo Engineers in the amount of $112,000 to provide an Asset Management Plan for water and sewer asset replacement. 6.6. Change Order to Well 12 Testing Contract Recommendation. That the Board of Directors approve Change Order No. 1 in the amount of $56,973.39 to provide and install a new water-tube pump, metal packer and the other appurtenances and to extend the contract time by an additional 35 calendar days for the extra work. 7. ACTION CALENDAR 7.1. Proposed Installation of Solar Panels on Spring View Reservoir Mr. Conklin explained that staff had investigated the feasibility of installing solar panels on District facilities to help offset the cost of energy. Studies have indicated a payback on an investment within 10-15 years. Staff solicited proposals from five providers to design and construct a pilot system at the Spring View Reservoir. Three proposals were received. Staff is recommending that the contract be awarded to the lowest bidder, Akeena Solar, Inc. Mr. Conklin further explained that while the project was not funded in the current budget, staff anticipates that savings from other projects would cover the expense. Staff will apply for a state funded rebate in order to lower the overall cost of the project. Mr. Conklin then summarized the environmental benefits of the pilot system and responded to questions from the Board. Director Mills made a motion, seconded by Director Armstrong to authorize the General Manager to execute a contract with Akeena Solar, Inc. in the amount of $227,489 to provide engineering design/build services for the construction of a 30kW peak photovoltaic solar panel installation for the Spring View Reservoir and Booster Pump Station site. No vote was taken at this time. 2 Director Beverage questioned why the pilot system was to be installed at the Spring View Reservoir and not at the District's Administration building. The Board and staff then discussed the benefits of installing the pilot project at the District's Administration building. Director Beverage made a motion to install the pilot system at the District's Administration building instead of the Spring View Reservoir. Motion failed for lack of a second. The Board then voted on the original motion made by Director Mills which failed with the Board voting 2-3. Director Beverage made a motion, seconded by Director Collett to instruct staff to conduct a new study for installation of a pilot system at the District's Administration building. Motion passed with the Board voting 5-0. 7.2. Employee-Employer Relations Between the District and Its Recognized Employee Organizations Mr. Vecchiarelli explained that the purpose of the resolution was to establish guidelines for the negotiation process between the District and its recognized employee organizations. The Personnel-Risk Management Committee first reviewed the resolution in November 2008 and again at its meeting held August 10t". Mr. Vecchiarelli then responded to questions from the Board. On a motion by Director Beverage, seconded by Director Armstrong, the Board voted 5-0 on a Roll Call to adopt Resolution 09-11 Implementing Chapter 10, Division 4, Title 1 of the Government Code, State of California, "Local Public Employee Organizations". 7.3. Resolution Authorizing Individuals to Establish Accounts and Sign District Checks, and Amending Related Policies & Procedures Mr. Vecchiarelli explained that with the resignation of Ms. Cyganik as the Finance Director, this resolution would need to be updated. A revised version of the resolution, including some minor modifications by the District's legal counsel, was provided at the Board meeting. Mr. Vecchiarelli then responded to questions from the Board regarding procedures related to the review of invoices and payable checks by Directors. Following discussion, the Board instructed staff to provide a proposal regarding these procedures to the Finance-Accounting Committee for consideration. On a motion by Director Collett, seconded by Director Beverage, the Board voted 5-0 on a Roll Call to adopt Resolution No. 09-12 as revised by legal counsel, Amending the Policy of Individuals Authorized Establish Accounts and Sign District Checks, Amending the Policy and Procedures for the Use of an Automated Check Signing Machine, and Rescinding Resolution No. 07-05. 3 7.4. Resolution Authorizing Individuals to Transfer Funds Via the Federal Wire System Mr. Vecchiarelli explained that this resolution was also in need of being updated due to the resignation of Ms. Cyganik. A revised version of the resolution, including some minor modifications by the District's legal counsel, was provided at the Board meeting. On a motion by Director Mills, seconded by Director Armstrong, the Board voted 5-0 on a Roll Call to adopt Resolution 09-13 as revised by legal counsel, Authorizing Individuals to Transfer Funds via the Federal Wire System and Rescinding Resolution No. 08-15. 8. DISCUSSION ITEMS 8.1. Wells Capital Investment Report for the 4t" Quarter of FY 2008/09 Keith Khorey of Wells Capital Management reviewed the District's Investment Performance Summary Report as provided in the agenda packets. Mr. Khorey also commented on Wells' current investment strategy for the District and responded to questions from the Board. 8.2. 2009 Water Rate Report Mr. Vecchiarelli reported that less than 25 written protests against the proposed water rate increase had been received to date. Two of the protests were in the form of a petition. Mr. Vecchiarelli then provided a PowerPoint presentation summarizing information to be included in the 2009 Water Rate Report. 8.3. Annexation to OCWD This item was removed from the agenda. 9. REPORTS, INFORMATION ITEMS AND COMMENTS 9.1. President's Report None. A brief recess was called at 10:40 a.m. The meeting was reconvened at 10:45 a.m. 9.2. Directors' Reports Director Collett commented on the progress of the zone reconfiguration project and suggested some improvements for the construction company. 9.3. General Manager's Report Mr. Vecchiarelli reported that the District loaned the City of Yorba Linda two LED signs to assist with their coyote awareness program. Permanent signs identifying the status of the community's water conservation efforts were almost complete. Staff is working with the City of Yorba Linda to identify locations for installation of these signs. 9.4. Future Agenda Items and Staff Tasks None. 4 10. COMMITTEE REPORTS 10.1. Executive-Administrative-Organizational Committee (Summerfield/Mills) Alternate. Collett Meeting scheduled for August 18, 4:00 p.m. has been rescheduled to August 17, 4:00 p.m. 10.2. Finance-Accounting Committee (Beverage/Summerfield) Alternate. Mills Minutes of the meeting held August 11 were provided at the meeting. Directors Beverage and Summerfield attended. Items discussed during the meeting were as follows: Monthly Financial Statements and Investment Report for June 2009; Monthly Portfolio Reports for July 1009; and Cash Out Audit for Finance Director. Meeting scheduled for September 8, 4:00 p.m. 10.3. Personnel-Risk Management Committee (Armstrong/Collett) Alternate. Summerfield Minutes of the meeting held August 10 were provided at the meeting. Directors Armstrong and Summerfield attended. Items discussed during the meeting were as follows: Employee-Employer Relations between the District and its recognized Employee Organizations; and status of recruitments and risk management activities. Meeting scheduled for September 14, 4:00 p.m. 10.4. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate. Beverage Minutes of the meeting held August 6 were provided in the agenda packet. Directors Mills and Armstrong attended. Items discussed during the meeting were as follows: proposed Casino Ridge Project; Terms and Conditions for water and sewer service with Dentino Properties; preparation of an Asset Management Plan; proposed installation of solar panels on Spring View Reservoir; proposed Change Order to Well 12 testing contract; completion of construction of Bastanchury 18" and 36" water mains; monthly groundwater production, purchased water and preventative maintenance program reports; monthly MWDOC Managers and OC Groundwater Producers meeting summary reports; and status of capital projects in progress. Meeting scheduled for September 3, 4:00 p.m. 5 10.5. Public Information-Technology Committee (Collett/Beverage) Alternate. Armstrong Minutes of the meeting held August 4 were provided in the agenda packet. Director Beverage attended. Items discussed during the meeting were as follows: August and September 2009 bill inserts; request from City of Yorba Linda to include bill insert regarding coyotes with September bills; update on City of Buena Park's usage of the District's water conservation ordinance trifold brochure; water conservation ordinance permanent signage; water usage and conservation for July 2009; upcoming public events; and Summer 2009 newsletter. Meeting scheduled for September 1, 4:00 p.m. 10.6. City of Placentia Ad Hoc Committee (Beverage/Vecchiarelli) Meeting scheduled for September 17, 4:00 p.m. 10.7. MWDOC/OCWD Ad Hoc Committee (Mills/Collett) Alternate. Summerfield Meeting scheduled for September 22, 4:00 p.m. 10.8. Revenues and Rates Ad Hoc Committee (Collett/Mills) Meeting to be scheduled. 10.9. Citizens Advisory Committee Minutes of the meeting held August 3 were provided at the meeting. Items discussed during the meeting were as follows: lead and copper sampling; water rate increase; sewer rate update; water conservation ordinance progress report; OC Grand Jury reports; and the OC Groundwater Replenishment System Tour. Meeting scheduled for August 24, 8:30 a.m. 11. INTERGOVERNMENTAL MEETINGS 11.1. Yorba Linda Planning Commission, July 29 (Collett) Director Collett did not attend. 11.2. Yorba Linda City Council, August 4 (Mills) Director Mills attended and commented on the sewer maintenance charge rate adjustment and coyote education signage which were addressed during the meeting. 6 11.3. MWDOC/MWD Workshop, August 5 (Staff) Staff did not attend. 11.4. OCWD Board, August 5 (Staff) Staff did not attend. 11.5. Yorba Linda Planning Commission, August 12 (Collett) Director Collett did not attend. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from August 14 thru September 30, 2009 The Board reviewed the listed meetings with no changes. 13. CONFERENCES AND SEMINARS 13.1. California Water Challenge Presentation - August 20, 2009 Assembly Select Committee Hearing - August 21, 2009 On a motion by Director Collett, seconded by Director Beverage, the Board voted 5-0 to authorize Directors and such staff members of the District as approved by the General Manager to attend the California Water Challenge Presentation. There was no interest in the attending the Assembly Select Committee Hearing. 14. ADJOURNMENT 14.1. The meeting was adjourned at 11.24 a.m. The next regular meeting of the Board of Directors will be held August 27, 2009 at 8.30 a.m. r k ter---:_ 7 ITEM NO. 8.2 AGENDA REPORT Meeting Date: August 27, 2009 Budgeted: Yes Total Budget: N/A To: Board of Directors Cost Estimate: $1,091,907.02 Funding Source: All Funds From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Cindy Navaroli, Interim Finance Dept: Finance Director Reviewed by Legal: N/A Prepared By: Maria Trujillo, Accounting CEQA Compliance: N/A Assistant I Subject: Payments of Bills, Refunds, and Wire Transfers SUMMARY: Section 31302 of the California Water Code says the District shall pay demands made against it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of disbursements for Board of Directors' approval. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $1,091,907.02. DISCUSSION: The major items and wire transfers on this disbursement list are as follows: A wire of $79,267.58 to ACWA-HBA for September 2009 health premium; a wire of $258.42 to ACWA-EAP for September 2009 EAP; a wire of $5,973.00 to 1 st Enterprise Bank for Job 200028 July 2009 retention payment; a check of $152,301.23 to Godwin Pumps for Godwin power generator; a check of $215,217.79 to Ken Thompson, Incorporated for Job 200710 July 2009 progress payment; and, a check of $53,937.00 to Pacific Hydrotech Corporation for Job 200028 July 2009 progress payment. The balance of $353,407.22 is routine invoices. ADP is now issuing our payroll checks, with the exception of the third party checks. We have two accounts payable check registers for this Board Meeting because we are in transition to a new Accounting System. The accounts payable check register from our D3 System is $625.93 and from the new Great Plains System is $859,736.31. Payroll No. 16 total is $231,544.78; and, the disbursements of this agenda report are $1,091,907.02. A summary of the checks is attached. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi-monthly. ATTACHMENTS: Name: Description: Type: CkList827 9.pdf Check Register Backup Material 09-CS 827.doc Cap Sheet Backup Material Yorba Linda Water DistrictCHFCK REGISTER YOR CHECKS DATED 08-14-09 THRU 08-27-09 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 51059 03-12-09 08-18-09 MICHAEL MINNICK -36.04 52199 03--27-09 08-27-09 Cdr."?VICE SOLUTIONS 661.97 625.93 Yvrba Linda Water District Check Register For Checks Dated: 08/14/2009 thru 08/27/2009 Check No. Date Vendor Name Amount W82709B 08/27/2009 1st Enterprise Bank 5,973.00 52202 08/27/2009 Abigail Abbott Staffing Svc 6,060.75 52198 08/17/2009 ACSE Orange County Branch 50.00 W82709A 08/27/2009 ACWA-EAP 258.42 W82709 08/27/2009 ACWA-HBA 79,267.58 52292 08/27/2009 Advanced Infrastructure 6,321-50 52211 08/27/2009 Alsco 840-22 52203 08/27/2009 Anaheim Wheel & Tire 567-00 52291 08/27/2009 Anixter Inc. 520-37 52204 08/27/2009 Answer One Communications 628-65 52205 08/27/2009 Associated Laboratories 2,567.20 52206 08/27/2009 At & T - Calnet2 4,196.43 52207 08/27/2009 AW Direct Inc. 280.58 52208 08/27/2009 Battery Systems 266.13 52209 08/27/2009 Bonterra Consulting 7,180.00 52210 08/27/2009 Butier Engineering Inc 21,010.00 52222 08/27/2009 C. Wells Pipeline 552.83 52212 08/27/2009 California Business Bank 23,913.09 52213 08/27/2009 Carollo Engineers 23,826-00 52214 08/27/2009 CDM, Inc. 8,929.49 52215 08/27/2009 CDW Government, Inc 1,811.84 52216 08/27/2009 City Of Anaheim 14,709,52 52217 08/27/2009 City Of Yorba Linda 104.29 52218 08/27/2009 Clinical Lab. Of San Bern. 1.000-00 52219 08/27/2009 Clortec 1,643.25 52220 08/27/2009 Coastal Ignition & Controls 3,201-83 52221 08/27/2009 Cogsdaie Services Corporation 6,532.50 52281 08/27/2009 CWEA 180.00 52223 08/27/2009 Dan Copp Crushing Corp. 107.00 52224 08/27/2009 Dapper Tire Co. Inc. 337.13 52225 08/27/2009 Datalok Orange County 33181 52226 08/27/2009 DeltaCare USA 296.32 52227 08/27/2009 Eisel Enterprises, Inc. 953.74 52228 08/27/2009 Employee Relations, Inc. 49.00 52229 08/27/2009 Fairweather Roofing, Inc. 16,651.00 52230 08/27/2009 Fry's Electronics 910.84 52231 08/27/2009 Fullerton Paint & Flooring 1,644.87 52232 08/27/20019 General Pump Co., Inc. 40,785.00 52233 08/27/2009 Godwin Pumps 152,30123 52234 08/27/2009 Griffith Air Tool, Inc. 728.13 52235 08/27/2009 Haaker Equipment Co. 6,943.60 52236 08/27/2009 Home Depot Credit Services 237,39 52237 08/27/2009 Infosend Inc. 5,650.39 52238 08/27/2009 Interiors By Jani-Tress 718.12 52239 08/27/2009 Jobs Available 1,120.00 52240 08/27/2009 Karen Shea 149.37 52241 08/27/2009 Katrina Brown 1,600-96 52242 08/27/2009 KB Design 2,651.33 52243 0812712009 Ken Thompson, Inc. 215,217.79 52244 0812712009 League of California Cities 450-00 52245 08/27/2009 Lincoln National Life 1,878-62 52247 08/27/2009 Mc Master-Carr Supply Co. 17.92 52246 08/27/2009 Mccormick,Kidman & Behrens LLP 31,828.64 52280 08/27/2009 Michael Minnick 36.04 52248 08/27/2009 Minuteman Press 388.04 52279 08/27/2009 Mountain Valley Express Co Inc 54-87 52249 08/27/2009 MWH Americas, Inc. 33,317.45 52201 08/27/2009 Myron White 43.19 52250 08/27/2009 Nextel Of California 1,735.27 52251 08/27/2009 Nickey Petroleum Co 4,391.28 52252 08/27/2009 Orange County - I W M ❑ 2,167.98 52253 08/27/2009 Grange County Register 791.88 52254 08/27/2009 Orvac Electronics 294.33 52255 08/27/2009 Pacific Communications Tech 4,935.29 52293 08/27/2009 Pacific Hydrotech Corporation 53,937.00 52257 08/27/2009 Parts Source Anaheim 223.32 52258 08/27/2009 Peggy Mcclure 630.00 52259 08/27/2009 Pete's Parts & Accessories 2,030.57 52260 08/27/2009 Petra Geotechnical Inc. 730.00 52261 08/27/2009 Placentia Disposal 49936 52262 08/27/2009 Praxair Distribution 211.51 52263 08/27/2009 Quinn Power Systems Associates 638.09 52265 08/27/2009 R J Services, Inc 260.30 52264 08/27/2009 Red Wing Shoe Store - Orange 312.34 52266 08/27/2009 Safety-Kleen Corp. 170.12 52267 08/27/2009 SC Fuels 1,073.62 52268 08/27/2009 Shred-It Los Angeles 65.00 52269 08/27/2009 Shutterstock Images LLC 2,559.00 52270 08/27/2009 South Coast AQMD 1,206.63 52271 08/27/2009 Southern Calif Edison Co. 225.97 52272 08/27/2009 Southern Calif Gas Co. 18,944.93 52273 08/27/2009 Specialized Cleaning 188.00 52278 08/27/2009 St.Joseph Heritage Healthcare 216-87 52274 08/27/2009 Stacy Bavol/Petty Cash 236.59 52275 08/27/2009 Staples Business Advantage 416.99 52276 08/27/2009 Sterne Clayton 90.00 52277 08/27/2009 Steven Andrews Engineering 2,040.00 52282 08/27/2009 Tetra Tech, Inc- 26.78 52283 08/27/2009 Townsend Public Affairs, Inc. 5,240.00 52284 08/27/2009 Underground Service Alert 201.00 52285 08/27/2009 United industries 280.48 52200 08/27/2009 Van Nguyen 40.79 52286 08/27/2009 Verizon Wireless 245-05 52287 08/27/2009 Village Nurseries 15.01 52288 08/27/2009 Vision Service Plan 1,637.78 52289 08/27/2009 Wells Supply Co 10,695.79 52290 08/27/2009 Western Highway Products, Inc. 337-13 TOta1 $859,736.31 August 27, 2009 CHECK NUMBERS: Void Check 51059 $ (36.04) Manual Check 52198 $ 50.00 Check (D3) 52199 $ 661.97 Checks (GP) 52200 TO 52293 $ 774,187.31 Void Check (GP) 52256 $ 774,863.24 WIRES: W-82709 ACWA-HBA $ 79,267.58 W-82709A ACWA-EAP $ 258.42 W-82709B 1ST Enterprise Bank $ 5,973.00 $ 85,499.00 TOTAL OF CHECKS AND WIRES $ 860,362.24 PAYROLL NO. 16 (including ADP checks): DISTRICT CHECK NUMBERS: Manual Checks 4344 TO 4349 $ 231,544.78 TOTAL: $ 1,091,907.02 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF AUGUST 27, 2009 TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS AS FOLLOWS: WATER $ 748,708.86 SEWER $ 15,574.92 ID # 1 $ 242,994.59 ID # 2 $ 84,628.65 TOTAL: $ 1,091,907.02 Legend: D3 = Old Accounting System GP= Great Plains New Accounting System ITEM NO. 8.3 AGENDA REPORT Meeting Date: August 27, 2009 Budgeted: Yes Total Budget: 2.3M To: Board of Directors Cost Estimate: 2.3M Funding Source: ID No. 1 GO Bonds From: Ken Vecchiarelli, General Account No: 301-2700 Manager Job No: 200710 Presented By: Steve Conklin, Engineering Dept: Engineering Manager Reviewed by Legal: N/A Prepared By: Joe Polimino, Project Engineer CEQA Compliance: Exempt Subject: Progress Payment Number 2 for the Zone Reconfiguration Project SUMMARY: The Zone Reconfiguration Project will result in improved water pressure to approximately 800 homes in Pressure Zone 3. The project includes construction of approximately 8,500 feet of pipe and appurtenances and was awarded to Ken Thompson, Inc. for $1,099,000. STAFF RECOMMENDATION: That the Board of Directors approve Progress Payment No. 2 in the net amount of $215,217.79 to Ken Thompson, Inc. for construction of the Zone Reconfiguration Project, Job No. 200710. DISCUSSION: In accordance with the contract documents, Ken Thompson, Inc. submitted a request for Progress Payment No. 2, in the amount of $239,130.88 for completed work through July 31, 2009. During this period, the contractor installed a total of approximately 3,162 L.F. of PVC pipeline in Village Center Drive and Paseo De Las Palomas. Gate valve installation continued at various locations and some base paving has been performed. The status of the construction contract with Ken Thompson, Inc. is as follows: . The current contract is $1,099,000.00 and 200 calendar days starting May 4, 2009. . If approved, Progress Payment No. 2 is $239,130.88 (21.8% of the total contract amount), less 10% retention of $23,913.09 for a net payment of $215,217.79. . Total payments to date including retention are $457,855.38 (41.7% of the total contract amount). . As of July 31, 2009, 89 calendar days were used (44.5% of the contract time). District Staff reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment Number 2 is attached for your reference. PRIOR RELEVANT BOARD ACTION(S): On September 13, 2007, the Board of Directors authorized staff to modify the Current Five Year Plan Capital Improvement Projects List and the Adopted Budget for Fiscal Years 2007-2009 by adding the Zone 4 Reconfiguration Project for the Twin Peaks Area of East Lake Village. On February 12, 2009, the Board of Directors authorized the President and Secretary to award a construction contract with Ken Thompson, Inc. in the amount of $1,099,000.00 for construction of the project. ATTACHMENTS: Name: Description: Type: Ken_Thompson _Progress _Pay Report _2.pdf KTI Progress Pay Report 2 Backup Material 4-0 absent. YORRA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Zone Reconfiguration Project PROGRESS PAY REQUEST NO. 2 LOCATION Yorba Linda, CA PROJECT NO. 200710 PAGES 1 OF 1 PAGES CONTRACTOR Ken Thompson, Inc. DATE 07/09/09 ORIGINAL CONTRACT AMOUNT $1,099,000.00 AUTHORIZED CHANGE ORDERS $0.00 REVISED CONTRACT AMOUNT 1,099,000.00 PROGRESS PAY ESTIMATE FOR PERIOD 07101/09 TO 07131/09 PREVIOUS THIS MONTH TO DATE VALUE OF WORK COMPLETED $218,724.50 $239,130.88 $457,855.38 CHANGE ORDER WORK COMPLETED $0.04 $0.00 $0.00 TOTAL VALUE OF WORK COMPLETED $218,724.50 $239,130.88 $457,855.38 LESS RETENTION 10% -$45,785.54 LESS OTHER DEDUCTIONS Electronic Wire Fees $0.00 NET EARNED TO DATE $412,069.84 LESS AMOUNT PREVIOUSLY PAID $196,852.05 BALANCE DUE THIS ESTIMATE r$215,217.79 NOTICE TO PROCEED May 4, 2009 COMPLETION TIME 20(1 CALENDAR DAYS APPROVED TIME EXTENSIONS 0 CALENDAR DAYS TOTAL CONTRACT TIME 200 CALENDAR DAYS TIME EXPENDED TO DATE 89 CALENDAR DAYS TIME REMAINING 111 CALENDAR DAYS REQUESTED BY. DATE: 07109109 Behzad Bawl, Project Manager. Ken Thompson. Inc. RECOMMENDED DATE: BY: Jesus Sosa,`Inspector• YUV'•;'C APPROVED BY, DATE: Steve Conklin, Lrigineering Manager, YLWD ITEM NO. 8.4 AGENDA REPORT Meeting Date: August 27, 2009 Budgeted: Yes Total Budget: $9,000,000 To: Board of Directors Cost Estimate: $9,000,000 Funding Source: ID No. 2 GO Bonds From: Ken Vecchiarelli, General Account No: 401-2700 Manager Job No: 200028 Presented By: Steve Conklin, Engineering Dept: Engineering Manager Reviewed by Legal: N/A Prepared By: Joe Polimino, Project Engineer CEQA Compliance: MND Subject: Progress Payment No. 3 for Construction of the Hidden Hills Reservoir Project SUMMARY: The Notice to Proceed for the Hidden Hills Reservoir Project was issued May 11, 2009. Work includes the construction of a 2.0 million gallon buried concrete reservoir, upgrades to the Santiago Booster Pump Station, an all weather access road and pipeline appurtenances for the reservoir site. The successful low bidder was Pacific Hydrotech Corporation. STAFF RECOMMENDATION: That the Board of Directors approve Progress Payment No. 3 in the net amount of $53,937.00 to Pacific Hydrotech Corporation for construction of the Hidden Hills Reservoir Project, Job No. 200028. DISCUSSION: In accordance with the contract documents, Pacific Hydrotech Corporation submitted a request for Progress Payment No. 3, in the amount of $59,930.00 for completed work through July 31, 2009. During this period, the contractor began installation of sump floors, inlet and outlet piping and pipe encasements for both reservoir bays. Silt fence and other sediment control was maintained. The status of the construction contract with Pacific Hydrotech Corporation is as follows: . The current contract is $5,012,458.00 and 400 calendar days starting May 11, 2009. . If approved, Progress Payment No. 3 is $59,930.00 (1.2% of the total contract amount), less 10% retention of $5,993.00 for a net payment of $53,937.00. . Total payments to date including retention are $905,280.00 (18.1 % of the total contract amount). . As of July 31, 2009, 82 calendar days were used (20.5% of the contract time). Staff and Butier, the District's construction manager for the project, have reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 3 is attached for your reference. PRIOR RELEVANT BOARD ACTION(S): The Board adopted a Negative Declaration for the Hidden Hills Reservoir project on February 12, 2004. On November 9, 2004, the Board authorized execution of an agreement with Carollo Engineers for design of project. This agreement was amended by Board action on November 22, 2005, adding design of the Santiago Booster Station Upgrades and again on October 26, 2006 for additional services required to complete the plans and specifications. Construction bids were received and a construction contract in the amount of $5,012,458 was awarded to the low bidder, Pacific Hydrotech Corporation on March 12, 2009. The Board has approved two progress payments to date for this project, the last which was approved July 23, 2009. ATTACHMENTS: Name: Description: Type. Pacific _Hydrotech_Progress _Pay Report_3.pdf Pacific Hydrotech PPR 3 Backup Material 3 ent___--- YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Hidden Hills Reservoir PROGRESS PA`s'' REQUEST NO. 003 LOCATION Yorba Linda, CA PROJECT NO. J-200028 PAGE 1 OF I PAGES CONTRACTOR Pacific Hydrotach DATE July 31, 2009 ORIGINAL CONTRACT AKAOUNT: $ 5,012,458.00 AUTHORIZED CHANGE ORDER& 0.00 [REVISED CONTRACT AMOUNT- 5,012,458-00 PROGRESS PAY ESTIMATE FOR PERIOD July 1, 2009 TO Jul 31, 2009 PREVIOUS THIS MONTH TO DATE VALUE OF WORK COMPLETED $ 845,350.00 $ 59,930.00 $ 905,280.00 CHANGE ORDER WORK COMPLETED TOTAL VALUE OF WORK COMPLETED $ 845,350.00 3 59,030.00 $ 945,286.D0 LESS RETENTION 10% $ 90,528.00 LESS OTHER DEDUCTIONS Electronic Wire Fees $ 60.00 NET EARNED TO DATE $ 814,752.00 LESS AMOUNT PREVIOUSLY PAID $ 780,815.00 BALANCE DUE THIS ESTIMATE $ 53,937.00 NOTICE TO PROCEED May 11, 2009 COMPLETION TIME 400 CALENDAR DAYS APPROVE[ TIME EXTENSIONS 0 CALENDAR DAYS TOTAL CONTRACT TIME 400 CALENDAR DAYS TIME EXPENDED TO DATE 82 CALENDAR DAYS TIME REMAINING 318 CALENDAR DAYS REQUESTED BY: &L DATE: 8 / 0 4 / 0 9 Boy wens, Proiecl Manager, Pacific Hydrotech A?PROVED BY: _ DATE: Steve Vhi te, Canstruction Manager, Butier Engineering J APPRC7VED BY: DATE: Steve Conklin, Engineerinn Vanaga2r, YLWD ITEM NO. 8.5 AGENDA REPORT Meeting Date: August 27, 2009 To: Board of Directors From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Manager Prepared By: Steve Conklin, Engineering Manager Subject: Proposed Payment Plan for Grandview Sewer Connection SUMMARY: An unapproved connection was made to the Grandview Sewer at the time of construction in 2007. In a meeting with District staff on August 3, 2009 Mr. Ante Marovic, the property owner, made a payment for over half of the total amount due the District and is requesting approval to pay the balance in nine monthly installments of $1,000 each. STAFF RECOMMENDATION: That the Board of Directors approve the payment of the $9,000 balance due by Mr. Ante Marovic for the sewer connection to 5551 Grandview Avenue in nine monthly installments of $1,018.75 each, with the first payment due within 25 days following Board approval, and subsequent payments due each month thereafter until paid in full. Further, if monthly payments are not made when due, in the amount of $1,018.75 or more, the unpaid balance will be added to the owner's subsequent water bill for payment. COMMITTEE RECOMMENDATION: The Executive-Administrative-Organizational Committee reviewed this matter at its August 17 meeting and supports the repayment plan on the condition that it include a reasonable level of interest on the unpaid balance. DISCUSSION: On May 28, 2009, the Board approved an adjusted frontage fee charge for construction of the Grandview Sewer in the amount of $15,767 for each of the ten residences which can be served by the sewer line. The sewer line was constructed in 2007 with District funds as part of a larger pipeline project, with the intent of having the residents on Grandview reimburse the District for their proportional share of the construction cost and other related fees for hookup to the new sewer. At the time of construction, an unapproved, illegal connection was made to the sewer by Mr. Ante Marovic who resides at 5551 Grandview Avenue. With the Board's approval of the frontage fee, staff moved forward to request payment from Mr. Marovic for his existing connection to the sewer. Staff sent a letter to Mr. Marovic dated June 1, 2009 (copy attached), advising him of the payment due to the District and of his responsibility to pay other fees due the City of Yorba Linda. Staff met with Mr. Marovic on June 4 to discuss the situation and his plan for payment. He indicated that he would investigate options for payment. Staff had follow-up telephone conversations with Mr. Marovic in mid-June. He indicated that due to the current economic situation he is unable to get a loan to cover the payment in full and asked if the District might allow payment over time. Further internal discussions followed, including consultation with the District's legal counsel to identify options. On August 3, District staff met with Mr. and Mrs. Marovic to further discuss the situation and options available. In the discussion, Mr. Marovic reiterated that he tried but was unable to get a property loan for the $19,146 due the District. However, he acknowledged that he could make a payment of $10,146 that day and monthly payments of $1,000 each for the following nine months to pay off the balance. Staff accepted the check from Mr. Marovic for $10,146 and indicated that approval of the requested monthly payment plan will be brought to the Board for consideration. The issue was brought to the EAO Committee on August 17 for consideration. The Committee approved the payment plan subject to the condition that the monthly payments include a reasonable level of interest on the unpaid balance. Following the meeting, staff evaluated the question of interest rate, and determined that a reasonable rate would be that paid by the District on its 2008 Revenue Bonds, which is 4.48%. With that interest rate, the payments would be $1,018.75 per month for nine months. On August 19, Mr. Marovic was informed by telephone of the proposed settlement plan and invited to attend the Board meeting. If the payment plan is approved by the Board, staff will prepare a Letter of Understanding to be signed by Mr. Marovic describing the payment plan and stating that if the monthly payments are not paid when due, the remaining balance will be immediately due and payable, with that balance added to his next water bill. ATTACHMENTS: Name: Description: Type: Grndview Ltr Marovich 1Jun09.pdf Payment Request Letter Backup Material Yorba Linda Water District Reliable and Trusted Service for More Than 100 Years June 1, 2009 Mr. Ante Marovich 5551 Grandview Avenue Yorba Linda, CA 92836 Subject: Grandview Sewer Main Update/ Unpermitted Connection Dear Mr. Marovich, This is to update you on the status of the subject project. On May 28, 2009, the Board of Directors approved an adjusted frontage fee charge f'or construction of the project in the amount of S15,767 for each of' the ten residences which can he served by the sewer line. For those homeowners who choose to connect, the District will also collect a design cost of $1,610 per residence. These amounts represent the homeowner's share of the District's total design, construction and inspection cost for the installation of the sewer main on Grandview Avenue. It sloes not include fees that are normally paid to connect to the public sewer system., or other charges by the City of Yorba Linda to connect to the sewer. The District has found that your property was connected to the new sewer in Grandview Avenue during construction activities in February 2007. The following payments are due to Yorba Linda Water District within 30 days of this letter: $15,767.00 Construction and inspection cost S1,610.00 Design cost $448.20 Service Fee based on 0.27 acres $1,180.00 Single Service Fee $1 11.00 Maintenance Fee for 28 months S19,146.20 Total due by July 1, 2009 Vote that other fees are also due and payable to the City of Yorba Linda.. Please contact the City regarding those fees. If you have any questions, please call. Sinccrcly~,-, G' ~ l ```/revs Conklin, P.E. Engineering Manager (714) 701-3102 copy: Kenneth R. Veccliiarelli, General Manager, YLWD Matt Bennett, Sr. Civil Engineer, City of Yorba Linda 1717 E Miraloma Avenue Placentia, CA 92870 714-701-3000 714-701-3058 Fax ITEM NO. 9.1 AGENDA REPORT Meeting Date: August 27, 2009 Budgeted: N/A To: Board of Directors Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: No Prepared By: Ken Vecchiarelli, General CEQA Compliance: N/A Manager Subject: 2009 Water Rate Report SUMMARY: Attached for the Board's review and discussion is the 2009 Water Rate Report. The report provides the justification and the rationale behind the proposed rates scheduled to be considered by the Board on September 10, 2009. The proposed rates within the report have been included in the notice mailed to all District customers pursuant to Proposition 218. STAFF RECOMMENDATION: That the Board of Directors receive and file the 2009 Water Rate Report. PRIOR RELEVANT BOARD ACTION(S): At the Board meeting held on August 13, 2009, Staff provided the Board with an overview of the proposed rates, including the justification and the rationale to support Staff's recommendation. ITEM NO. 9.2 AGENDA REPORT Meeting Date: August 27, 2009 Budgeted: N/A To: Board of Directors Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Pat Grady, Assistant General Dept: Administration Manager Reviewed by Legal: N/A Prepared By: Pat Grady, Assistant General CEQA Compliance: N/A Manager Subject: Draft Responses to 2009 Grand Jury Reports SUMMARY: Attached for the Board's review and possible action are YLWD's draft responses to the 2009 Grand Jury reports entitled "Paper Water - Does Orange County Have a Reliable Future?" and "Water Districts: A New Era in Public Involvement". The District is required to respond to both reports by September 17, 2009. STAFF RECOMMENDATION: That the Board consider approval of the Grand Jury responses and authorize the President to execute the responses on behalf of the District. COMMITTEE RECOMMENDATION: The Executive-Administrative-Organizational Committee reviewed the draft reponses at a meeting held on August 17, 2009. After discussion and minor revisions, the Committee supports Staff's recommendation. DISCUSSION: In June 2009, the Orange County Grand Jury issued two reports entitled "Paper Water - Does Orange County have a Reliable Future" and "Water Districts: A New Era in Public Involvement". The District is compelled to respond to both reports by September 17, 2009 pursuant to Penal Code 933.05(a) and (b). Staff has drafted responses to both reports. The responses related to "Paper Water" was a joint effort among the Orange County Water Agencies coordinated by MWDOC. Staff participated in this effort and believed a unified message was the best approach since 50% of the District's water supply is imported and purchased from MWDOC and the remaining 50% is extracted from the OCWD managed groundwater basin. As such, the District has no control of this water reliability and cannot commit water resources to future City developments without MWDOC and OCWD participation in the process. The responses to the second Grand Jury report related to "Public Involvement" was drafted internally by Staff. Attached for the Board's review and discussion are the draft responses to be submitted to the Presiding Judge and the Grand Jury. In addition, Staff has included a one document summary of both reports and the responses in a bullet list format for District use. PRIOR RELEVANT BOARD ACTION(S): None. ATTACHMENTS: Name: Description: Type: Summary of Grand Jury Reports.doc Summary of Grand Jury Reponses Backup Material Grand Jury Responses Paper_Water.doc Paper Water Responses Backup Material Grand Jury Response New Era.doc New Era Responses Backup Material Grand Jury Report Summary of Responses (Paper Water) Findings F.1: There is inadequate coordination between local land-use planning agencies and local water supply agencies, resulting in a process that fails to fully engage the issues. (a). Water agencies have tended to avoid interfering with or participating in growth-management decisions. (b). Cities and the County have tended to not critically evaluate the limitations of the water agencies' supply projections. YLWD disagrees with this Finding • Water Districts are not land use planning agencies • Water Districts historically have had the responsibility of accommodating approved land use • YLWD cannot assign specific imported water rights to any entity - MET • YLWD's supply is dependent on development and efficient management of both imported and local supplies • Met has the responsibility of: o Developing management programs to support cost-effective local resources o Securing additional supplies through SWP and Colorado River aqueduct o Providing the infrastructure (treatment, distribution, storage, etc) o Developing a comprehensive management plan to address surpluses and shortages o Develop a rate structure to implement programs and construct infrastructure • Responsibility exists for YLWD to explore and develop local supplies while providing financial stability to MET to develop its system. This combination was to provide the ability to meet demands at all times • The following is in progress: o New sources being developed (conservation, transfers, desalination and recycled water) o Water transfers secured o Legal challenges are in place to address cutbacks o Appeals made to the State related to the Bay Delta Conservation Plan o Progress continues to install a barrier system for the Delta Smelt o MET is updating its Integrated Regional Plan o Phase 2 design of the GWRS is in progress along with two desalination facilities F.2: California's looming water supply crisis receives very little, if any, expressed concern from the public in comparison to the numerous other environmental issues presented during development project reviews. (a). Orange County's citizens and interest groups do not appear to grasp the seriousness of the water supply situation or the complexity and urgency of the necessary solutions. (b). Several recent, substantial water supply awareness efforts are underway (e.g. the 0. C. Water Summit) that show promise but appear targeted to audiences that are already informed. YLWD agrees with this Finding • There are considerable challenges for agencies to convey to the public the intricacies and complexities of our water situation • The water industry uses many communication outreach forums o i.e. Bill inserts, newsletters and web site • MET has a public information officer to coordinate outreach efforts with member agencies • MET has embarked on an advertising campaign with TV and radio for LA and San Diego • Current MET outreach efforts include: o Developing a regional message o Developing a comprehensive strategic communication plan o Increasing visibility throughout the region o Integrating new technology o Engaging strategic partners to help carry the message, i.e. IBM, Volcom, etc. F.3: LAFCO is the agency charged with facilitation constructive changes in governmental structure to promote efficient delivery of services. To this end, LAFCO is conducting a governance study of MWDOC which is the designated representative for nearly all of the Orange County retail water agencies, acting on their behalf with their surface water supplier Metropolitan. (a). There are a number of points of governance disagreement between MWDOC and several of its member agencies. This is creating an impediment to the on-going effectiveness of these agencies in critical areas of Orange County's water supply management. (b). The current disagreement is a distraction from the greater good of the agencies working toward Orange County's water future. (c). The stakeholders in LAFCO's study failed to meet their March 11, 2009 deadline for LAFCO's public hearing on this matter. Continued delays are unacceptable. YLWD agrees with this Finding • The current disagreement is between MWDOC and other south county agencies • YLWD agrees that a resolution would benefit all water suppliers F.4: Orange County is uniquely fortunate to have a vast, high-quality, well- managed groundwater basin serving its north geographical area. However, in its south reaches, it has an equally large, high-growth area with virtually no available groundwater resources. (a). The difference in groundwater availability creates a "haves versus have-nots" situation that is conducive to inherent conflicts. (b). The difference in groundwater availability provides opportunities for responsible participants to develop and construct long-term solutions which will benefit the entire County. YLWD agrees with Finding FA(a) • South County development was enhanced by the ability to obtain imported supplies and develop recycled water projects YLWD disagree partially with Finding FA(b) • Critical groundwater, recycled water and ocean water are being developed in south Orange County • OCWD groundwater basin is utilized to provide supplies to its overlying producers • OCWD has an agreement with MET to store up to 66,000 AF of conjunctive use water • The additional yield in the basin benefits everyone in southern California • The GWRS also benefits the south County area as well as southern California • Access to the lower cost groundwater outside of the basin or allowing access to more storage by south County would increase the cost to the basin agencies Recommendations R.1: Each Orange County municipal planning agency, in cooperation with its respective water supply agency, should prepare for adoption by its city council, a dedicated Water Element to its General Plan in conjunction with a future update, not to exceed June 30, 2010. This document should include detailed implementation measures based on objective-based policies that match realistic projections of the County's future water supplies. These objectives, policies and implementation measures should address imported supply constraints, including catastrophic outages and incorporate the realistic availability and timing of "new" water sources such as desalination, contaminated groundwater reclamation and surface water recycling. (Findings F1 a & b, and F2 a & b) This Recommendation will not be implemented • Does not directly apply to YLWD, but rather the City of Yorba Linda • YLWD prepares an Urban Water Management Plan every five years • For developments greater than 500 units, a Water Supply Assessment study is required R.2: Each Orange County retail and wholesale water agency should affirm its responsibility to develop new, additional, innovative public outreach programs, beyond water conservation and rationing programs, to expose the larger issues surrounding water supply constraints facing Orange County. The objective should be to connect the public with the problem. The outreach effort should entail a water emergency exercise that simulates a complete, sudden break in imported water deliveries. The exercise should be aimed directly at the public and enlist wide-spread public participation on a recurring basis beginning by June 30, 2010. This recommendation may be satisfied by a multi-agency exercise but the inability to coordinate such an event should not preclude the individual agency's responsibility. (Findings F2 a & b) This Recommendation has been implemented Public Outreach • While already implemented, additional innovative types of communications will be considered • The systems in place allow sufficient opportunity for the public to be informed • YLWD will continue to look for an expansion of opportunities Emergency Planning • In 2008, the Golden Guardian Exercise took place simulating a complete break in imported supplies • WEROC has formed a new partnership with the O.C. Health Care Agency's Point of Dispensing planning and exercises R.3: Each MWDOC member agency should reaffirm to LAFCO that it will assign the resources necessary to expediently resolve regional governance issues. While the subject study is being facilitated by LAFCO, the options are with the agencies to decide what is best for all. Once conclusions are reached, the parties need to agree quickly and, hopefully, unanimously to adopt a course of action. (Findings F3a,b&c) This Recommendation will be implemented. • YLWD is committed to providing resources and the assistance necessary to resolve these pending governance issues R.4: Each Orange County retail and wholesale water agency should affirm its commitment to a fair-share financial responsibility in completing the emergency water supply network for the entire County. The entire County should be prepared together for any conditions of drought, natural or human-caused disaster, or any other catastrophic disruption. WEROC should commence meetings of all parties, to facilitate consensus on an equitable funding/financing agreement. (Finding F4 a & b) This Recommendation is already being implemented • WEROC is in place for emergency planning and preparedness • Emergency interties are also in place to move water from one agency to another • WEROC is focused on planning and system reliability when parts of the water system suffer outages • MET is in the process of fortifying the Diemer Plant from potential damage caused by seismic shaking • Confusion exists in the Grand Jury Report between "catastrophic" impact of a Delta failure which is long term and a "system" event, which involves WEROC • YLWD's Urban Water Management Plan addresses drought situations and includes supply analysis for normal, sing, and multiple dry years • The UWMP also includes drought response measures for up to 50% level of shortage Grand Jury Report Summary of Responses (A New Era in Public Involvement) F.1: Water Districts' procedures for the selection of professional consultants' contracts are somewhat lax and in some instances non-existent, thereby creating a perception of bias in the selection of candidates, especially in the selection of board members from other member agencies to provide professional services. YLWD disagrees with this Finding • YLWD has a purchasing and requisitions policy o The policy addresses goods & services, i.e. legal services, engineering consultants and auditors o Four approval stages and authorization levels included • A revised policy will be adopted by November/2009 F.2: Some board members are conducting their professional practices with member agencies and use their elected positions to promote their competitiveness. YLWD disagrees with this Finding • YLWD directors are in the private sector and no conflict currently exists • In no instance has a director promoted their competitiveness in open session • Directors generally recuse themselves from any discussion where a potential conflict exists or abstain from action or a payment warrant F.3: Codes of ethics among districts are quite varied. Some are very comprehensive and some do not exist other than to reference state law. YLWD agrees with this Finding • YLWD updated its Conflict-of-Interest policy July 2009 • A detailed comprehensive ethics policy is slated for February 2010 F.4: Water board meetings are frequently scheduled for times that discourage public attendance. YLWD disagrees with this Finding • Public attendance is encouraged by YLWD • Evenings meetings are conducted as needed based on issues and events • Following the Freeway Complex Fire, evening meetings were held for seven months until attendance subsided • An evening meeting for a rate increase is scheduled for September 2009 • YLWD Board meetings are seldom attended by the public unless there is a pending issue of public interest • Lack of public attendance is an indicator of public satisfaction with their local government • Evening meetings results in overtime labor costs F.5: An unusually high percentage of water board directors were originally appointed, not elected to their position. YLWD disagrees partially with this Finding • The appointment process saves the District's customers from a costly special election ranging from $165,000 to $186,000 • Appointments are done by the remaining Board members previously elected by the people • Board members are elected to represent and make decisions on the peoples' behalf • At a following election, the residents can choose to re-elect or not re-elect the appointed representative • Of the 20 members that have served on board of YLWD since 1958, nine were appointed F.6: Some board members hold multiple elected positions that under certain circumstances could create an appearance of a conflict of interest unless the person recuses himself on an issue-by-issue basis. YLWD agrees partially with this Finding • No YLWD board member holds a multiple elected position • YLWD is slated to adopt an ethics policy by February 2010 that will address incompatibility of offices F.7: There are no time limits for how long individuals can serve on any water district board in Orange County. YLWD agrees with this Finding • Board members are typically re-elected if the public is content • There are no term limits within the YLWD political body • Of the 25 elections since 1958, six did not occur because board members were un- opposed Recommendations The following are YLWD's responses to the Grand Jury Recommendations R.1 - R.6: R.1: In addition to the laws set forth in the Political Reform Act of 1974 and Government Code section 1090, the water districts should promulgate rules requiring professionals seated on their boards of directors to formally disclose to their organizations any contracts they are pursuing or have attained with member agencies. The water districts should also adopt more encompassing rules regarding the selection of professional consultants. (F. 1, F.2) The Recommendation has not yet been fully implemented, but will be implemented in the future. • Conflict-of-Interest Policy was updated in July 2009 • An ethics policy will be implemented in February 2010 • A revised procurement policy will be adopted in November 2009 R.2: Each water district should develop a specific code of ethics, hold training sessions and monitor its enforcement. (F.3) The Recommendation has not yet been fully implemented, but will be implemented in the future. • An ethics policy will be adopted in February 2010 • New Board members are required to attend ethics training within six months of being elected • Existing Board members attend ethics training every two years R.3: Water board meetings need to be scheduled at times that would generate maximum public attendance. (F.4) The Recommendation has been implemented. • YLWD adjusts meeting times when increased public attendance is anticipated • Attendance at Board meetings is generally low • Meeting times will continue to be adjusted as the need arises • Meetings that occur outside of District business hours may also result in additional costs to the District for overtime R.4: Each water district should choose to hold elections to fill board vacancies. The appointment process should be used only in exceptional circumstances. (F.5) The Recommendation will not be implemented because it is not warranted and unreasonable. • YLWD believes the appointment process is effective • The residents have the ability to re-elect or not re-elect an appointee • The recommendation is unreasonable due to the cost of a special election ($165,000 to $186,000) R.5: Each water district should promulgate rules requiring each director to inform the other board members of any other offices including seats on boards of member agencies that he or she holds. (F. 6) R.5a: Water districts should consult their legal counsel to advise them whether there exists an incompatibility of offices when a board member holds multiple offices at the same time. (F. 6) The Recommendation has not yet been implemented, but will be implemented in the future. • An ethics policy to address the recommendations will be adopted in February 2010 • Legal counsel consultation of the incompatibility of offices will be included R.6.: Water districts should adopt self-imposed term limits for their members, not to exceed three terms of service. (F.7) The Recommendation will not be implemented because it is not warranted and unreasonable. • YLWD does not have the ability to impose term limits on itself - voters approval required September 1, 2009 Honorable Kim Dunning Presiding Judge of the Superior Court 700 Civic Center Drive West Santa Ana, CA 92701 Re: 2008/09 Orange County Grand Jury Report "Paper Water - Does Orange County Have a Reliable Future?" Honorable Kim Dunning: Thank you for your interest and examination of the reliability of water supplies to the Orange County area. We are grateful for your interest and believe it will add to the voices trying to raise awareness of our current water supply problems. Yorba Linda Water District ("YLWD") agrees that the state and Southern California has a water supply problem at this time. It is our intent to clarify a number of the findings and the recommendations. For example, we concur that the cutbacks on the state Water Project supplies beginning in 2007 has occurred due to the issuance of the biological opinion related to the Endangered Species Act and the impacts of the Delta pumping on the Smelt fish. Prior to that time, our water supplies were much more reliable. This serves as an example that the water supply problem is primarily driven by external factors and therefore not necessarily within our span of control or the Metropolitan Water District of Orange County ("MWDOC"). In summary, we would like to comment in the following areas: ■ Increasing Orange County's water supply, with the exception of development of local supplies such as conservation, ocean desalination and water recycling, is predominantly not within our control. ■ The regulatory process causing impacts to our water supplies is very complex and educating the public to grasp the specifics of the situation is difficult and not necessarily required in soliciting their help in responding to the call for additional levels of conservation. ■ MWDOC's polling, and the public's interest in water conservation rebates indicates that a high percentage of consumers understand we currently face restrictions in our supplies. ■ Together with MWDOC, we have communication systems in place that provide ample opportunity for the public to learn specifics on the reliability of water supplies. Additionally, the Urban Water Management Plan and other documents can be readily obtained from YLWD. 1 ■ The availability of water from the Orange County Water District ("OCWD") groundwater basin is controlled via legislative and water rights law. Within these limitations, the basin and non-basin areas are already working well together. ■ The Grand Jury Report has mixed up issues associated with emergency preparedness with supplies from the Bay-Delta area and emergency preparedness of supplies internal to the County. The Water Emergency Response Organization of Orange County (WEROC) does a very good job of planning for emergency response in the County. Participation in the 2008 Golden Guardian exercise is exactly what was recommended by the Grand Jury. ■ From the 1920's up until the 1980's, federal, state and local governments spoke with one voice about water issues and designed the water supply system accordingly. In the 20 years since the defeat of the Peripheral Canal, Southern California has used water conservation, water recycling and the purchase of miscellaneous water rights to provide water for growth. The purchase of water rights is limited, we've maximized indoor conservation and water recycling has been met with varying degrees of success. ■ The biggest urgency in solving the long term water supply problems that affect most of the state of California is for the Governor, the legislature (democrats and republicans), the Department of Water Resources and the Federal Regulatory entities working together to resolve the issues. ■ Attempts to balance all of the competing interests required to solve the water supply problem have created an impasse. Work is underway to resolve this, but developing a long-term solution in the Bay-Delta area is likely a 20-year issue that will cost between $10 and $20 billion to resolve, IF agreement can be reached between all stakeholders. ■ If allowed under their charter, a recommendation for a future Grand Jury is to investigate progress at the state Level. Any assistance the Grand Jury can provide in resolving that situation would be appreciated. Some believe that a long-term resolution of the Bay-Delta will never occur while others believe that a major water shortage or catastrophic event will have to occur to motivate the state in developing a solution. We are prepared to assist the Grand Jury in this effort, if called upon. ■ Today, as we respond to this Report, YLWD is currently under a Stage 2 (10-20% water reduction) mandatory water conservation level. Because everyone is not in an immediately dire situation, members of the water community are mixed in their opinion of the current water supply situation. Some believe "crisis" is the proper characterization, while others believe it is a "problem" that will be solved in time. A very severe drought or an earthquake causing failure of levees may expedite a solution. The "crisis" group believes we dodged a bullet this year, we are living year to year and we can't be successful in the long run under the status quo. The "problem" group noted that reservoirs can quickly recover and that we are officially in an El Nino position (wet year coming up). Findings Following are our specific responses on the 2009 Grand Jury Findings and Recommendations: 2 F.1: There is inadequate coordination between local land-use planning agencies and local water supply agencies, resulting in a process that fails to fully engage the issues. (a). Water agencies have tended to avoid interfering with or participating in growth-management decisions. (b). Cities and the County have tended to not critically evaluate the limitations of the water agencies' supply projections. YLWD disagrees with this Finding Water agencies are not land planning agencies - by design. Historically and today, water communities have had the responsibility of providing water for the approved land use. Planning being performed at the local, regional and state levels is aimed at using our existing water supplies more efficiently and developing new supplies and systems to accommodate the current and future needs of our residents and businesses and to improve supply reliability where necessary. What sometimes causes a bit of a dilemma is that since the formation of Metropolitan Water District of Southern California (MET) in 1928, all entities in Southern California have come under the MET water supply umbrella. This prevents the District from assigning specific imported water rights to any single entity or property. On a regional basis, when MET has surplus, we all have surplus and when MET has a shortfall, we all have a shortfall. With water supplies to MET being cut back, as discussed below, it can be somewhat difficult to quantify the water supply reliability to a particular area. The linkage of regional and local water supplies within the MET service was strengthened and clarified after the defeat of the "peripheral canal" beginning in the early 1990's with the development of MET's Integrated Resources Plan (IRP) where it was declared "through the implementation of the IRP, MET and its member agencies will have the full capability to meet full-service demands at the retail level at all times." Through this commitment it was recognized that retail water supply reliability is dependent on the development and efficient management of both local water resources and imported water sources. A significant responsibility was placed on MET to develop: (1) water management programs that support the development of cost-effective local resources, in conjunction with the local agencies, (2) securing additional imported supplies as necessary through programs that increase the availability of water delivered through the Colorado River Aqueduct and the state Water Project, (3) providing the infrastructure needed to integrate imported and local sources (treatment, distribution, storage), (4) establishing a comprehensive management plan dealing with periodic surplus and shortage conditions, and (5) developing a rate structure to strengthen MET's financial capabilities to implement water supply programs and make infrastructure improvements. Through the IRP commitment, an equal burden was placed on the local retail agencies to explore and develop local supplies in a systematic manner and use all water resources efficiently while providing financial stability to MET for the development of its system. Collectively this "partnership" was envisioned to provide the ability "to meet full- service demands at the retail level at all times." 3 Although the water supply situation has changed drastically since the judicial ruling handed down in 2007, the same framework and goals still apply. The change in the underpinning of our water supplies, as noted by the Grand Jury, is the significant immediate loss of a large portion of supplies from the State Water Project due to enforcement of the Endangered Species Act on a species by species basis starting with the Delta Smelt beginning in 2007. Until that time, the joint regional and local systems were meeting all demands and plans were in place to meet actual and projected demands out to 2035. The following is in progress to resolve the water supply situation: 1. New sources are being developed (conservation, transfers, desalination and recycled water) 2. Water transfers have been secured; more are being investigated; despite cutbacks, the Colorado River Aqueduct will be almost full in 2009. 3. Legal challenges and appeals have been filed on behalf of the water users to resolve some of the cutbacks and to explore what is necessary to resolve issues within our current framework. 4. Appeals have been made to the Governor and the Legislature. The state has initiated environmental review for the Bay Delta Conservation Plan (BDCP). The EIR/EIS evaluates the impacts of BDCP, including studies on new conveyance and ecosystem restoration. The Delta Vision Committee has submitted its final implementation report to the Governor with recommended actions on how the California Delta should be managed to fulfill its equal goals of water supply reliability and ecosystem restoration. The plan sets priorities based on the Delta Vision Strategic Plan developed by the Governor's Delta Vision Blue Ribbon Task Force. 5. Progress is being made on installation of the two-gate barrier system in Old River and Middle River to provide a barrier to keep the Delta Smelt away from the pumps. When this is constructed, it should result in recouping some of the supplies recently lost. 6. MET is embarking on an update of its IRP which is looking long term at sources for meeting the needs of customers in Southern California, under the changed circumstances (as can best be predicted) out to 2035. Updates for course corrections occur about every five years. 7. At the local level within Orange County, many efforts are underway to help mitigate the imported supply losses and to improve supply reliability. Orange County is a leader in water recycling, implementation of water use efficiency efforts and management of the OCWD groundwater basin. The Grand Jury rightly acknowledged OCWD for development of the GWRS Project; Phase 2 of the Project is now under design to increase production from 72,000 AF per year up to 102,000 AF per year. In addition, local agencies are continuing development of production wells, well head treatment in areas where needed, brackish water desalting and in Orange County we are currently looking at two potential ocean desalination plants to produce new supplies. Orange County's 4 current and future water supply and demand scenarios for 2010 and 2035 are illustrated below. Supplies from ocean desalination projects are shown at about 9% (Dana Point and Huntington Beach) of the total demand in Orange County and would offset an equal amount of imported water. Key to development of ocean desalination projects is how we can design these systems to be environmentally friendly as well as being cost-effective solutions. Orange County Water Supply and Demand v „a yyF H~ZCCti,7~'I wan` PkY `p Recycled Recycled 115,O AO AFY 11Oµ000 AFY 17 Santa Ana River 22% Santa Ana River and Local and Local Rainfall/Streamflow g Rainfall/Streamflow 270,000 AFY 300,000 AFY Imported 39% Imported "i 38% n ,ooOaAFY 310i000AFYi, 44% 40% ~es'ryG4ei4tQn r 2010 2035 690,000 AFY 780,000 AFY F.2: California's looming water supply crisis receives very little, if any, expressed concern from the public in comparison to the numerous other environmental issues presented during development project reviews. (a). Orange County's citizens and interest groups do not appear to grasp the seriousness of the water supply situation or the complexity and urgency of the necessary solutions. (b). Several recent, substantial water supply awareness efforts are underway (e.g, the 0. C. Water Summit) that show promise but appear targeted to audiences that are already informed. YLWD agrees with this Finding While YLWD may agree that the water crisis receives little concern, it is not for lack of effort by the water community. Water is not as visible as traffic congestion because the public cannot feel the "water congestion" until cutbacks become mandatory. This is part of the difficulty and the challenge of stressing water issues that the public will recognize and understand. What are outlined below are the outreach efforts that are currently being utilized along with several questions: 5 ■ Is this a crisis? What should we do about it? What can we do about it? Crisis communications cannot be sustained over the long run. Some in the water community believe that we have reached a crisis, while others believe it is a problem to be resolved over time. The water community itself does not speak with one voice. ■ What do we want the public to do about it? How can the public best be motivated? Do we want to scare the public? ■ What course of action will maintain the best working relationship with the public and build the most trust for the long run? The public needs to trust what the water community is doing and support investments in our water future. Also, a course of action to develop and sustain long term changes in the efficiency of use by customers is critical in addition to an informed constituency for decision-making and voting (when necessary). ■ The water community has been extremely successful, leading to complacent consumers. The crisis facing us is a combination of regulatory, judicial/legal, political, environmental and to a lesser degree, financial. There are considerable challenges for the public to understand the intricacies and nuances of this framework. However, the gains from having a better informed public are to motivate them towards an improved efficiency with which they use water, have them understand the need for additional investments for new supplies and to have them educated for purposes of securing positive votes on water related initiatives, if needed. Water is not a sexy topic unless there is a line break with a major sink hole, a sewer spill, or people forced to curtail their use. Typically, people do not see the intricacies of providing water to homes and businesses. Many take water for granted, which causes it to be undervalued. Customers turn on the tap and the water comes out - sprinklers turn on and the water comes out. The water industry typically does not have brown outs or black outs, but has a high degree of reliability and safety, probably somewhere beyond 99.99% of time water comes out of the tap). Many have the belief that the water supply system is something that they - and prior generations - have invested in and that artificial constraints limit the supply of water from it. The water industry has many communication and outreach avenues, but the spending by public entities is generally low compared to industries that would spend at much higher levels to brand or market new products. Still, water industry communications can be and are effective. In recent years, the water industry has collectively advertised itself as the "Family of Southern California Water Agencies" and promoted "Bewaterwise.com" to promote the water supply situation and water conservation tips and opportunities. YLWD utilizes bill stuffers, newsletters and websites to inform the public. In Orange County, a monthly Public Affairs Workgroup meeting occurs made up of the staffs from all of the retail agencies. They work to develop and implement consistent message points for the public. MET also has a Public Information Officer's workgroup that coordinates outreach and communication among the MET member agencies. Due to the expense and the limited budgets of the retail agencies, the brunt of the TV and radio media outreach has been developed via MET through an advertising campaign for the LA & San Diego markets. 6 While YLWD is open to new methods of communication, we believe the existing communication system works. Polling conducted from time to time to track water industry messages and the understanding of the public indicates that high percentages of people understand there is a water crisis (76% in a recent survey by MWDOC). Furthermore, 78% indicated they would change their water using habits to conserve to prevent water rationing and 67% believe that their water agency does an effective job of keeping them informed about water supply. We also believe high percentages of the public are engaged because of recent actions such as the "run" on rebates for water conservation devices, which pushed spending up to a point where the available funding was exceeded several times over. The following is an outline of current outreach efforts ■ In June of 2008, Public Affairs Workgroup began developing a regional message that incorporated three critical elements of a long term communication strategy: • The message must be positive • Focus on water-use efficiency and eliminating water waste • Adaptable at the retails level ■ A comprehensive, strategic communication plan was developed that incorporates grassroots education, strategic partnerships and guerrilla marketing techniques. Research has shown that this approach has been most successful in achieving social change. ■ This plan augments and enhances the large media campaign that Metropolitan is orchestrating ■ Increases visibility throughout the region ■ Integrates new technology and social marketing channels as well. ■ Critical part of the plan is to engage strategic partners to help carry the message. Everyday new partners are signing on. Current strategic partners include: • IBM • Hurley Sportswear • Volcom • Sempra Energy • Surfer Magazine • Latino Water Coalition • TransWorld Media • Sunset Magazine • Fuel TV ■ Other parts of the program include: • Huell Howser contracted with the Association of California Water Agencies to produce 15 episodes about California Water. This series is being utilized to help inform citizens. • Cable channels are being used to get the word out 7 • Educational trips are provided by MET for each of its Directors to host community leaders to promote water issues • MWDOC has one of the best School Education Programs in the state for water awareness education in grades K-6; it reaches about 90,000 students per year and has reached about 3,000,000 since 1972. • Water Heroes - a new program aimed at kids and families, focuses on identifying water wasting habits and eliminating them. Over the past two years 7500 kids have signed up on www.ocwaterhero.com Given all of this communication and work that is planned, will there still be shortages as part of the "looming water crisis"? As discussed in other locations in this response, there are many issues that need to be resolved to fix the state's water crisis. Until then, we fully expect that water shortages will occur from time to time. F.3: LAFCO is the agency charged with facilitation constructive changes in governmental structure to promote efficient delivery of services. To this end, LAFCO is conducting a governance study of MWDOC which is the designated representative for nearly all of the Orange County retail water agencies, acting on their behalf with their surface water supplier Metropolitan. (a). There are a number of points of governance disagreement between MWDOC and several of its member agencies. This is creating an impediment to the on-going effectiveness of these agencies in critical areas of Orange County's water supply management. (b). The current disagreement is a distraction from the greater good of the agencies working toward Orange County's water future. (c). The stakeholders in LAFCO's study failed to meet their March 11, 2009 deadline for LAFCO's public hearing on this matter. Continued delays are unacceptable. YLWD agrees with this Finding The ongoing disagreement is primarily between MWDOC and various water agencies located in the southern portion of Orange County. While YLWD is not directly involved with these disagreements, YLWD is in agreement that resolution of these pending issues would benefit all water suppliers in Orange County. F.4: Orange County is uniquely fortunate to have a vast, high-quality, well- managed groundwater basin serving its north geographical area. However, in its south reaches, it has an equally large, high-growth area with virtually no available groundwater resources. (a). The difference in groundwater availability creates a "haves versus have-nots" situation that is conducive to inherent conflicts. (b). The difference in groundwater availability provides opportunities for responsible participants to develop and construct long-term solutions which will benefit the entire County. 8 YLWD agrees with Finding F.4(a) This recognition of water rights mirrors the manner in which Orange County was developed. Development in South County was enhanced by the south county water agencies ability to obtain imported supplies and develop extensive recycled water programs. YLWD disagree partially with Finding F.4(b) The finding is not clearly stated, but appears to include two implications that we believe require expanded information. The first implication is that local resources are not being fully developed in south Orange County. This is not correct. Critical groundwater, recycled water and ocean water supplies are all being developed in south Orange County. While the Grand Jury is correct in its supposition that there are opportunities presented in this issue as well as problems, the second implication here is that the OCWD Groundwater Basin has the capacity to serve the entire county. This is not correct. The groundwater basin is managed and utilized to provide water supplies to its overlying constituent landowners. The operable storage in the basin has been developed at substantial cost and is insufficient to meet all demands within the basin. Currently, the groundwater basin meets about 62% of the needs of the overlying agencies (historically, has ranged from 62% to 80%) and the groundwater cost is substantially less than the cost of imported water. If additional supplies can be developed, the % distribution to the overlying entities would increase. It will never reach 100% and so it can be concluded that the supplies from the basin must remain in the basin to benefit the basin constituents. This is also consistent with water rights law and the OCWD Act that formed OCWD and governs how it operates and manages the basin. Use of storage in the OCWD basin is allowed by agreement with OCWD. OCWD has entered into storage arrangements that allow MET to store up to 66,000 AF of imported water and to recall as much as 20,000 AF out of this same storage in any one year. This additional yield out of storage benefits everyone in Southern California. In addition, a February 2006 Emergency Services Program Agreement was developed with OCWD that allows emergency water supplies from the basin to be exchanged with south Orange County. This program is currently being used to allow exchange of water to south Orange County during emergency situations. Finally, development of projects by OCWD like GWRS benefit the south County area as well as all of southern California. Allowing access to the lower cost groundwater outside of the basin or allowing access to more storage by south Orange County would increase the cost to the basin agencies and put them at risk. Recommendations R.1: Each Orange County municipal planning agency, in cooperation with its respective water supply agency, should prepare for adoption by its city council, a dedicated Water Element to its General Plan in conjunction with a future update, not to exceed June 30, 2010. This document should include detailed implementation measures based on objective-based policies that match realistic projections of the County's future water supplies. These objectives, policies and 9 implementation measures should address imported supply constraints, including catastrophic outages and incorporate the realistic availability and timing of "new" water sources such as desalination, contaminated groundwater reclamation and surface water recycling. (Findings F1 a & b, and F2 a & b) This Recommendation will not be implemented This recommendation does not directly apply to YLWD since the municipal planning agency is the City of Yorba Linda. However, it should be noted that YLWD is the respective water agency and prepares an Urban Water Management Plan and updates it every five years. In addition, MET prepares an UWMP, its IRP and updates and its Water Supply Outlook periodically. Collectively, these documents provide what has been suggested. For new developments of greater than 500 units, a Water Supply Assessment must be completed - this is existing law. In addition, the water community measures performance (supplies vs demands) as we move forward and will be able to make adjustments in the process. R.2: Each Orange County retail and wholesale water agency should affirm its responsibility to develop new, additional, innovative public outreach programs, beyond water conservation and rationing programs, to expose the larger issues surrounding water supply constraints facing Orange County. The objective should be to connect the public with the problem. The outreach effort should entail a water emergency exercise that simulates a complete, sudden break in imported water deliveries. The exercise should be aimed directly at the public and enlist wide-spread public participation on a recurring basis beginning by June 30, 2010. This recommendation may be satisfied by a multi-agency exercise but the inability to coordinate such an event should not preclude the individual agency's responsibility. (Findings F2 a & b) This Recommendation has been implemented We believe the response to this question should be separated into two points, the first associated with the public outreach programs and the second with respect to emergency planning. Public Outreach While the recommendation has already been implemented, more innovative types of communications will be considered. The communications systems in place provide sufficient opportunities for the public to become informed. The description of these communication systems was previously provided. We can always do better and look for an expansion of opportunities. This is especially important as new Bond Issues come before the voters, as is anticipated heading into 2010. Emergency Planning "A complete sudden break in the imported supplies" was a component of the statewide Golden Guardian exercise in 2008 in which 20 of Orange County's water and wastewater utilities participated. This type of exercise or variations of it are repeated periodically. WEROC has expanded its preparedness efforts regarding water supply by initiating a new partnership with the Orange County Health Care Agency's Point of Dispensing 10 planning and exercises. WEROC is exploring ways to enhance public education of "water preparedness" through the 2009 Point of Dispensing exercises. However, the purpose of the exercises is for water and wastewater agencies to practice their procedures and communications systems to ensure that restoration of service will be in as short a period as is possible. These exercises are not for general consumers. When a large earthquake strikes, we know we cannot protect the entire water system and there will be outages. Our recommendation to consumers is to be prepared to go without water systems for 72 hours or longer. R.3: Each MWDOC member agency should reaffirm to LAFCO that it will assign the resources necessary to expediently resolve regional governance issues. While the subject study is being facilitated by LAFCO, the options are with the agencies to decide what is best for all. Once conclusions are reached, the parties need to agree quickly and, hopefully, unanimously to adopt a course of action. (Findings F3a,b&c) This Recommendation will be implemented. YLWD is committed to providing resources and the assistance necessary to resolve these pending governance issues. R.4: Each Orange County retail and wholesale water agency should affirm its commitment to a fair-share financial responsibility in completing the emergency water supply network for the entire County. The entire County should be prepared together for any conditions of drought, natural or human-caused disaster, or any other catastrophic disruption. WEROC should commence meetings of all parties, to facilitate consensus on an equitable funding/financing agreement. (Finding F4 a & b) This Recommendation is already being implemented The Water Emergency Response Organization of Orange County (WEROC) has been established to conduct emergency planning and preparedness at the regional level and response to disaster type events that impact the water and wastewater agencies within the County. WEROC participates with Regional and statewide forums as well. Each retailer also has plans and activities they conduct to be in a state of emergency preparedness. The retail agencies also work together to support one another through the network of emergency interties between agencies that allow water to be shuttled back and forth during emergency situations. WEROC's focus and the focus of emergency planning is to improve "system reliability", the ability to continue meeting demands when parts of the water system have suffered outages. This is distinguished against "supply" reliability which has to do with having supplies to deliver through the system. With respect to regional system reliability, Orange County has been successful in requesting MET to improve the reliability of the Diemer Filtration Plant in Yorba Linda. MET is in the process of making substantial investments to protect the plant from being damaged by seismic shaking. The Diemer Plant treats most all of the imported drinking water in Orange County. 11 We also believe there was confusion in the Grand Jury Report between a "catastrophic" impact of a Delta Failure, which is more of a long term water "supply" issue, and therefore different than a WEROC test exercise type of "system" event. Much work is underway on resolution of the Delta issues, but not through WEROC. WEROC does conduct test exercises in Orange County of the type noted by the Grand Jury. We would also like to note that responses to drought situations are included when YLWD completes the Urban Water Management Plan. Responses must include supply analyses for normal years, single dry years and multiple dry years and must also include drought response measures for up to a 50% level of shortage. The Urban Water Management Plans address many of the issues raised by the Grand Jury. Once again, thank you for the opportunity to respond to these Findings and Recommendations. Should you have any questions or need clarification of any of the aforementioned items, please feel free to contact Ken Vecchiarelli, General Manager of Yorba Linda Water District. Sincerely, John W. Summerfield President of the Board of Directors Cc: Orange County Grand Jury Board of Directors Ken Vecchiarelli, General Manager c 12 September 1, 2009 Honorable Kim Dunning Presiding Judge of the Superior Court 700 Civic Center Drive West Santa Ana, CA 92701 Re: 2008/09 Orange County Grand Jury Report "Water Districts: A New Era in Public Involvement" Honorable Kim Dunning: Thank you for providing the Yorba Linda Water District ("YLWD") the opportunity to reply to the findings and recommendations set forth by the 2008/09 Grand Jury in the above referenced report. YLWD concurs that pending issues such as water shortages, rationing and the rising cost of water certainly thrusts water agencies into the center stage of the public's awareness. This new era of public involvement and communication has created new opportunities for public agencies to further explore innovative and creative solutions for conducting business, while soliciting public awareness, understanding and "buy-in". While Yorba Linda was specifically mentioned in the Grand Jury report in reference to the Freeway Complex Fire of 2008, the YLWD takes prides in its public openness and transparency. The District has taken great strides and made tremendous efforts to communicate and solicit feedback from the residents it serves. In support of this effort, the Board of Directors formed a Citizens Advisory Committee in March 2009 comprised of volunteer residents to meet and discuss pending YLWD issues and to make recommendations to the Board. Findings The following are YLWD's responses to the Grand Jury Findings F.1 -F.7: F.1: Water Districts' procedures for the selection of professional consultants' contracts are somewhat lax and in some instances non-existent, thereby creating a perception of bias in the selection of candidates, especially in the selection of board members from other member agencies to provide professional services. YLWD disagrees with this Finding YLWD has a resolution (Resolution No. 07-11) in place for the acquisition and procurement of goods and services. Section 4 of the resolution clearly defines procedures for engaging professional and non-professional services and contracts, including but not limited to legal services, engineering consultants and auditors. The policy establishes four approval stages, which define authorization levels and the 1 quantity of competitive bids or quotes required for the selection process. While this resolution was adopted in 2007, it is YLWD's intent to review, update and revise the policy with the assistance of the agency's financial auditor by November 2009. F.2: Some board members are conducting their professional practices with member agencies and use their elected positions to promote their competitiveness. YLWD disagrees with this Finding While board members of YLWD are employed in the private sector, their activities and business relationships are not areas of concern for YLWD. Board members of YLWD generally err on the side of caution by recusing themselves from participating in discussions or abstaining from voting on action items or approving payment warrants if a direct or perceived conflict of interest potentially exists. F.3: Codes of ethics among districts are quite varied. Some are very comprehensive and some do not exist other than to reference state law. YLWD agrees with this Finding Each public agency is required to adopt a conflict-of-interest policy as required by the State and compliance established by the Orange County Board of Supervisors. An agency may optionally adopt an ethics policy above and beyond what is legally required. YLWD adopted a revised conflict-of-interest policy in July 2009 as requested and recommended by the Orange County Board of Supervisors. YLWD is in the process of developing and implementing a comprehensive and detailed ethics policy as a supplement to the conflict-of-interest policy. This effort should be completed with adoption anticipated by February 2010. F.4: Water board meetings are frequently scheduled for times that discourage public attendance. YLWD disagrees with this Finding Public attendance and participation is encouraged by YLWD. While YLWD regular board meetings are generally held the 2nd and 4th Thursday of every month at 8:30 a.m., YLWD has conducted, and continues to conduct evening meetings in cases where an increase of public attendance is anticipated. For example, following the Freeway Complex Fire event in 2008, YLWD conducted evening board meetings for seven months due to the temporary increase of public attendance. Soon thereafter, attendance subsided and board meetings reverted to mornings. Additionally, in September 2009, a public hearing for a general water rate increase has been set for an evening meeting due to an anticipated increased attendance. Every community is unique and diverse with their various issues and should be addressed and acknowledged accordingly. YLWD believes that low public attendance at board meetings sends the message of that the public is content with the day-to-day management of the agency. On occasion, however, issues or events arise that require YLWD to recognize those events as "the exception to the rule" and accommodate those events accordingly. It should also be noted that meetings held during normal District business hours may result in additional overtime labor costs for non-exempt District staff. 2 F5: An unusually high percentage of water board directors were originally appointed, not elected to their position. YLWD disagrees partially with this Finding The appointment process is in place to resolve vacancy issues that unexpectedly occur on a governing board and to avoid a costly special election, which is estimated to range between $165,000 and $186,000 for YLWD according to the Orange County Registrar of Voters. The Grand Jury report viewed appointments for some agencies as "managing the process". YLWD disagrees with this characterization. If a board member is replaced by means of the appointment process, it is the very same political body, elected by the people, that makes the appointment. Board members are elected by the people to represent and make decisions on their behalf with respect to agency business. The election process provides an opportunity for the people to retain or to elect another candidate to replace the appointed representative during a following election. Furthermore, the election process also provides an opportunity to elect another candidate other than the board members who made the initial appointment of another board member. And finally, the system also allows and provides for a recall election of any board member prior to a general election if the residents are unhappy with any or all of their representatives. Since 1958, 25 elections have taken place. Of the 20 board members who have served since 1958, nine were appointed. F.6: Some board members hold multiple elected positions that under certain circumstances could create an appearance of a conflict of interest unless the person recuses himself on an issue-by-issue basis. YLWD agrees partially with this Finding While no board member of YLWD holds multiple elected positions, YLWD agrees that the appearance and perception of a conflict may exist if multiple elected offices were held. It is in this aspect that YLWD agrees with the Finding. In February 2010, YLWD will be adopting and implementing an ethics policy that will address, among other items the holding of multiple offices and the potential incompatibilities thereof. F.7: There are no time limits for how long individuals can serve on any water district board in Orange County. YLWD agrees with this Finding There are no term limits in existence for YLWD board members. Generally, if the public is content with their elected representatives and the manner in which the agency is managed, board members are typically re-elected by their constituents or are un- opposed during the election process. During the 25 elections since 1958, six did not occur for YLWD since the board members subject to re-election were un-opposed. As a result, these same board members were re-appointed to the Board for another term. 3 Recommendations The following are YLWD's responses to the Grand Jury Recommendations R.1 - R.6: R.1: In addition to the laws set forth in the Political Reform Act of 1974 and Government Code section 1090, the water districts should promulgate rules requiring professionals seated on their boards of directors to formally disclose to their organizations any contracts they are pursuing or have attained with member agencies. The water districts should also adopt more encompassing rules regarding the selection of professional consultants. (F. 1, F.2) The Recommendation has not yet been fully implemented, but will be implemented in the future. YLWD currently has in place a conflict-of-interest policy, which was previously updated in July 2009 per a recommendation set forth by the Orange County Board of Supervisors. By February 2010, YLWD intends to adopt and implement a comprehensive ethics policy. By November 2009, a modified and updated procurement policy is slated for adoption that will include procedures for acquiring goods and services in addition to professional services. R.2: Each water district should develop a specific code of ethics, hold training sessions and monitor its enforcement. (F.3) The Recommendation has not yet been fully implemented, but will be implemented in the future. YLWD intends to adopt and implement a comprehensive ethics policy by no later than February 2010. Newly elected board members are required to attend ethics training within six months of beginning their term and existing board members are required to attend ethics training every two years. This is the current practice of YLWD. R.3: Water board meetings need to be scheduled at times that would generate maximum public attendance. (F.4) The Recommendation has been implemented. As previously discussed in F.4, YLWD modifies its scheduled meeting times to evenings when increased public attendance is anticipated due to an issue or unexpected event. During uneventful periods of time, attendance at public meetings is generally very low regardless of the meeting time. YLWD will continue to adjust meeting times as the need arises accordingly. As previously noted, meetings that are held outside District business hours may result in additional overtime labor costs for non-exempt staff members. R.4: Each water district should choose to hold elections to fill board vacancies. The appointment process should be used only in exceptional circumstances. (F.5) The Recommendation will not be implemented because it is not warranted and unreasonable. 4 As previously discussed in F.5, YLWD believes the appointment process is effective and continues to provide residents the ability to re-elect or not re-elect an appointee, or a board member(s) who made the appointment, at an upcoming election. The recommendation is further declared to be unreasonable due to the cost of funding a special election, which ranges anywhere from $165,000 to $186,000 for the customers of YLWD. YLWD believes a special election should be considered only in exceptional circumstances. R.5: Each water district should promulgate rules requiring each director to inform the other board members of any other offices including seats on boards of member agencies that he or she holds. (F. 6) R.5a: Water districts should consult their legal counsel to advise them whether there exists an incompatibility of offices when a board member holds multiple offices at the same time. (F. 6) The Recommendation has not yet been implemented, but will be implemented in the future. In February 2010, YLWD will be adopting and implementing an ethics policy which will address the holding of multiple offices, including offices of member agencies, and the potential incompatibilities thereof. The policy will contain provisions for consulting with legal counsel to render a legal opinion if a potential incompatibility of office exists. R.6.: Water districts should adopt self-imposed term limits for their members, not to exceed three terms of service. (F.7) The Recommendation will not be implemented because it is not warranted and unreasonable. Existing law Gov. Code 53077 requires that the voters approve any proposal or initiative that imposes term limits on their elected representatives. Therefore, the law does not permit water districts to adopt self-imposed term limits for their members. Once again, thank you for the opportunity to respond to these Findings and Recommendations. Should you have any questions or need clarification of any of the aforementioned items, please contact Ken Vecchiarelli, General Manager of the Yorba Linda Water District. Sincerely, John W. Summerfield President of the Board of Directors Cc: Orange County Grand Jury Board of Directors Ken Vecchiarelli, General Manager 5 8/28/2009 M2009 Grand Jury Repdlt~t "Paper Water - Do Orange County Have a Reliable Future" "Water Districts: A New Era in Public Involvement" • 00• Paper Water • F•1: Inadequate coordination between local land-use planning agencies and local water supply agencies • YLWD disagrees with this Finding • YLWD cannot assign specific imported water rights to any entity - MET • Met has the responsibility of developing programs, additional supplies, infrastructure, management plan and rate structure • The following is in progress: • New sources (conservation, transfers, desal, and recycled water) • Legal challenges are in place to address cutbacks • Appeals made to the State - Bay Delta Conservation Plan • Progress to install a barrier system for the Delta Smelt • MET is updating its Integrated Regional Plan • Phase 2 design of GWRS is in progress along with two desalination facilities 1 8/28/2009 Paper Water • R.i: Each 0.C. city should nrenare for adontion by its city council, a dedicated Water Element to its General Plan in conjunction with a future update, not to exceed June 30, 2010 • This Recommendation will not be implemented • Does not directly apply to YLWD, but rather the City of Yorba Linda • YLWD prepares an Urban Water Management Plan every five years • For developments greater than 500 units, a Water Supply Assessment study is required • CEQA Process Paper Water • CAC Recommendation • Should the City wish to implement the Grand Jury's recommendation by incorporating a Water Element into the General Plan, YLWD will support their efforts and provide information accordingly 2 8/28/2009 Paper Water • F.Z: California's loomina water.sunnly crisis receives very little, if any, expressed concern from the public in comparison to the numerous other environmental issues presented during development project reviews. • YLWD agrees with this Finding • Challenge for agencies to convey to the public the intricacies and complexities of our water situation • The water industry uses many communication outreach forums, i.e. Bill inserts, newsletters and web site • MET has a public information officer to coordinate outreach efforts with member agencies rape 7rW ate r • R.a: Each O.C. water agency should affirm its responsibility to develop new, additional, innovative public outreach programs, beyond water conservation and rationing programs, to expose the larger issues surrounding water supply constraints facing Orange County • This Recommendation has been implemented • While already implemented, additional innovative types of communications will be considered • YLWD will continue to look for an expansion of opportunities • In 2oo8, the Golden Guardian Exercise - simulating a complete break in imported supplies 3 8/28/2009 Paper Water • CAC Recommendation • Include formation of the CAC as an additional method for communicating with the public • Add specific public information activities for the last six months Paper Water • E3: LAFCO is conducting a governance study of MWDOC • (a). Governance disagreement between MWDOC and several of its member agencies. • (b). The current disagreement is a distraction from the greater good of the agencies working toward Orange County's water future. • YLWD agrees with this Finding • The current disagreement is between MWDOC and other south county agencies • YLWD agrees that a resolution would benefit all water suppliers 4 8/28/2009 Paper Water • R.2: Each A/IWDOC member aaencv should reaffirm to LAFCO that it will assign the resources necessary to expediently resolve regional governance issues. • This Recommendation will be implemented • YLWD is committed to providing resources and the assistance necessary to resolve these pending governance issues Paper Water • E4: O.C. is fortunate for a high-quality, well- managed g.w. basin serving the northern area. South area - virtually no available groundwater resources. • (a). The difference in groundwater availability creates a "haves versus have-nots" situation that is conducive to inherent conflicts. • (b). The difference in groundwater availability provides opportunities for responsible participants to develop and construct long-term solutions which will benefit the entire County. 5 8/28/2009 Paper Water • E4. (con't) • YLWD agrees with Finding F.4(a) • South County development was enhanced by the ability to obtain imported supplies and develop recycled water projects • YLWD disagrees partially with Finding F.4(b) • Critical g.w., recycled water and ocean water are being developed in south Orange County • OCWD groundwater basin is utilized to provide supplies to its overlying producers • OCWD has an agreement with MET to store up to 66,ooo AF of conjunctive use water • The additional yield in the basin benefits everyone in southern California • The GWRS also benefits the south County area as well as Paper Water • R.4: Each O.C. water agency should affirm its commitment to a fair-share financial responsibility in completing the emergency water supply network for the entire County • This Recommendation is already being implemented • WEROC is in place for emergency planning and preparedness • Emergency interties are also in place • MET is in the process of fortifying the Diemer Plant - seismic • "Catastrophic" impact of a Delta failure which is long term and a "system" event, which involves WEROC • YLWD's Urban Water Management Plan addresses drought situations 6 8/28/2009 Questions & Discussion New Era - Public Involvement • El: Procedures for the selection of consultants' contracts are lax and in some instances non- existent • YLWD disagrees with this Finding • YLWD has a purchasing and requisitions policy • The policy addresses goods & services, i.e. legal services, engineering consultants and auditors • Four approval stages and authorization levels included • A revised policy will be adopted by November 2009 7 8/28/2009 PNew7Era -Public Involvement • R.1: Water districts should promulgate rules requiring professionals seated on their boards of directors to formally disclose to their organizations any contracts they are pursuing or have attained with member agencies. The water districts should also adopt more encompassing rules regarding the selection of professional consultants • The Recommendation has not yet been fully implemented, but will be implemented in the future. • Conflict-of-Interest Policy was updated in July 2009 • An ethics policy will be implemented in February 2010 • A revised procurement policy will be adopted in November 2009 New Era - Public Involvement • E2: Some board members are conducting their professional practices with member agencies and use their elected positions to promote their competitiveness • YLWD disagrees with this Finding • YLWD directors are in the private sector and no conflict currently exists • In no instance has a director promoted their competitiveness in open session • Directors generally recuse themselves from any discussion where a potential conflict exists or abstain from action or a payment warrant 8 8/28/2009 New Era - Public Involvement • R.Z: Each water district should develop a specific code of ethics, hold training sessions and monitor its enforcement • The Recommendation has not yet been fully implemented, but will be implemented in the future • An ethics policy will be adopted in February 2010 • New Board members are required to attend ethics training within six months of being elected • Existing Board members attend ethics training every two years New Era - Public Involvement • E3: Codes of ethics among districts are quite varied. Some are very comprehensive and some do not exist other than to reference state law • YLWD agrees with this Finding • YLWD updated its Conflict-of-Interest policy July 2009 • A detailed comprehensive ethics policy is slated for February 2010 9 8/28/2009 FN w Era - Public Involvement • E4: Water board meetings are frequently scheduled for times that discourage public attendance • YLWD disagrees with this Finding • Public attendance is encouraged by YLWD • Evenings meetings are conducted as needed based on issues and events • Following the Freeway Complex Fire, evening meetings were held for seven months until attendance subsided • An evening meeting for a rate increase is scheduled for September 2009 • YLWD Board meetings are seldom attended by the public unless there is a pending issue of public interest New Era - Public Involvement • R•3: Water board meetings need to be scheduled at times that would generate maximum public attendance • The Recommendation has been implemented • YLWD adjusts meeting times when increased public attendance is anticipated • Attendance at Board meetings is generally low • Meeting times will continue to be adjusted as the need arises • Meetings not held within business hours may result in additional costs for District rate payers 10 8/28/2009 New Era - Public Involvement • CAC Recommendation • Meetings should be held in the evenings regardless of attendance New 7Era- Public Involvement • E5: An unusually high percentage of water board directors were originally appointed, not elected to their position • YLWD disagrees partially with this Finding • The appointment process saves the District's customers from a costly special election ranging from s165,000 to $i86,ooo • Appointments are done by the remaining Board members previously elected by the people • Board members are elected to represent and make decisions on the peoples' behalf • At a following election, the residents can choose to re-elect or not re-elect the appointed representative • Of the zo members that have served on board of YLWD since 1958, nine were appointed 11 8/28/2009 New Era - Public Involvement • R.z.: Each water district .should choose to hold elections to fill board vacancies. The appointment process should be used only in exceptional circumstances • The Recommendation will not be implemented because it is not warranted and unreasonable • YLWD believes the appointment process is effective • The residents have the ability to re-elect or not re-elect an appointee • The recommendation is unreasonable due to the cost of a special election ($165,000 to $i86,ooo) New Era - Public Involvement • CAC Recommendation • The Board may wish to consider appointing a "runner- up" from the last election 12 8/28/2009 New Era - Public Involvement • F6: Some bard members hold multiple elected positions that under certain circumstances could create an appearance of a conflict of interest unless the person recuses himself on an issue-by- issue basis • YLWD agrees partially with this Finding • No YLWD board member holds a multiple elected position • YLWD is slated to adopt an ethics policy by February 2010 that will address incompatibility of offices New Era -Public Involvement • R•5: Each water district should promulgate rules requiring each director to inform the other board members of any other offices held • R•5a: Water districts should consult their legal counsel to advise them whether there exists an incompatibility of offices • The Recommendation has not yet been implemented, but will be implemented in the future • An ethics policy to address the recommendations will be adopted in February 2010 • Legal counsel consultation of the incompatibility of offices will be included 13 8/28/2009 New Era - Public Involvement • F,7: There are no time limits for how Iona individuals can serve on any water district board in Orange County • YLWD agrees with this Finding • Board members are typically re-elected if the public is content • There are no term limits within the YLWD political body • Of the 25 elections since 1958, six did not occur because board members were un-opposed New Era - Public Involvement • R.6.: Water districts should adopt self-imposed term limits for their members, not to exceed three terms of service • The Recommendation will not be implemented because it is not warranted and unreasonable • YLWD does not have the ability to impose term limits on itself - voter approval required 14 8/28/2009 New Era - Public Involvement • CAC Recommendation • Consider adding that self-imposed term limits could occur should the Board place this item on the ballot for the residents to decide Questions & Discussion 15 ITEM NO. 9.3 AGENDA REPORT Meeting Date: August 27, 2009 Budgeted: N/A Total Budget: N/A To: Board of Directors Cost Estimate: N/A Funding Source: N/A From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: N/A Prepared By: Annie Alexander, Executive CEQA Compliance: N/A Secretary Subject: Letter of Support for AB 1506 SUMMARY: Assemblyman Joel Anderson, has requested that the District execute a letter of support for AB 1506. Assemblyman Anderson represents the 77th Assembly District serving the areas of Borrego Springs, El Cajon, La Mesa and Santee. STAFF RECOMMENDATION: That the Board of Directors discuss and consider supporting AB 1506. Should the Board decide to offer support, it is recommended the President be authorized to execute correspondence to Assemblyman Joel Anderson in support of the assembly bill. COMMITTEE RECOMMENDATION: The Executive-Administrative-Organizational Committee discussed this item at its meeting held August 17, 2009 and requested this item be placed on the agenda for consideration by the Board. DISCUSSION: AB 1506 would allow recipients of state-issued IOU's to endorse and return them as payment for any obligations they may owe to the state (i.e. state taxes, DMV fees, etc.). State Controller Jonathan Chiang also supports AB 1506 as the state has continued to issue IOU's despite the passage of a budget. AB 1506 will be voted on by the Assembly Appropriations Committee on August 29, 2009. Attached for the Board's review is a letter drafted by Assemblyman Anderson's office for the President's signature. PRIOR RELEVANT BOARD ACTION(S): None. ATTACHMENTS: Narne: Description: Type: AB1506_Memo.pdf Letter of Support for AB 1506 Backup Material ,09 4-0 absent. August 27, 2009 Assemblyman Joel Anderson 77th Assembly District 500 Fesler St Ste 201 El Cajon CA 92020 Subject: Support of AB 1506 Dear Assemblyman Anderson: AB 1506 fixes a serious flaw in the state's IOU system. The concept is simple: if an individual or company has money due them from the state, the entity may use that credit towards any payment owed to the state. In the event of a fiscal crisis, your bill would save many businesses and individuals from severe financial hardships by stopping the State from charging taxes and fees while withholding payments. Under current state law, the public is required to accept registered warrants, or IOUs, under certain emergency circumstances. However, the state itself will not accept such securities as payment. This is a double standard that harms those hardworking public employees, taxpayers and contracted businesses caught in the middle. Not only does receiving an IOU create serious short term cash-flow problems, it also places an onerous tax burden on many individuals and companies. While issuing IOUs may become a painful necessity at some point, the problem should not be exacerbated by requiring taxes to be paid to the state on income that the state is simultaneously withholding. AB1506 alleviates these problems by requiring the state to accept its own credit as payment for taxes and fees. With continuing economic uncertainty and erosion of state revenues, it is important for Californians that the state has a fair system for payment of its debts and obligations. I write in support of AB 1506. Sincerely, John W. Summerfield President From: Sanchez, Alex [mailto:Alex.Sanchez@asm.ca.gov] Sent: Tuesday, August 11, 2009 12:30 PM To: Ken Vecchiarelli Subject: Official Request for Support AB 1506 (Anderson) .rs ~5`Y2VIif i~il ~Pd~JT`. I Ii+LCr'l (7 45 EL CA.1'Jh L ~~fi2p r Ax01G 3711 I2 I Fix 0"y~ a~ pdCP JOELANDERSON ?S;Er,AB1-Yhtft.1PER. SE'.'ENTY-SE.'EIVIHLI. TRIGT Memo To: Director Richard Collett From: Assemblyman Joel Anderson Date: August 11, 2009 Re: Assembly Bill 1506 AB 1506 -Request for Letter of Support AB 1506 would allow recipients of state-issued IOUs to endorse and return the IOUs to the state as payment for any obligations they owe to the state (state taxes, DMV fees, public university tuition, etc.). For example, if you are a government agency and you receive an IOU for $100,000 from the state, and you also owe the state $1,000, in payroll taxes, you may send the IOU to the Franchise Tax Board as payment for your tax obligation. State Controller Jonathan Chiang has recently sent a letter of support for AB 1506, as IOU's continue to be issued, despite the passage of a state budget. Attached for your review are several background articles, a white paper and a sample letter of support. AB 1506 is headed for a crucial vote in the Assembly Appropriations Committee on August 29th. It is critical to the success of the bill that the committee members know you are a supporter of AB 1506 before this hearing Letters may be faxed, emailed or mailed to my office. Thank you for your consideration. Fact Sheet http://repalert/aresites/member/77/pdf/FactSheet AB1506 v4.pdf Background Articles http://arc.asm.ca.gov/member/77/Qdf/AB1 506Backg rou ndArticles. pdf Sample Letter of Support http://arc.asm.ca.gov/member/77/pdf/AB1506supportletterFINAL V1 090526.pdf PO BUX 942849 500 FESLER STREET SUITE 201 SACRAMENTO, CA 94249-0077 FL CAJON, CA 92020 (916) 319-2077 q ~~yy yyY y~ ~y p y~ ~y ~Y (619) 441-2322 FAX (916) 319-2177 ~tC~l~a~t~x~ L 3~CA6L~ FAX (619) 441-2327 sT? T~ c o+~l~1R ~M JOEL ANDERSON ASSEMBLYMEMBER, SEVENTY-SEVENTH DISTRICT FACT SHEET Assembly Bill 1506 - ISSUANCE OF REGISTERED WARRANTS SUMMARY SOLUTION Assembly Bill 1506 is a bi-partisan, time-sensitive Assembly Bill 1506 fixes that flaw in the system by bill that would direct a state agency to accept, from making IOUs useful. It simply follows-up the code any entity, a registered warrant - commonly known section mentioned above with the guarantee that a as an IOU - endorsed by that payee, at full face state agency shall accept from any entity a registered value, for the payment of any obligations owed by warrant endorsed by that payee, at full face value, that entity to that state agency. Survival of services for the payment of any obligations owed by that and jobs is at stake; the state should accept its own entity to that state agency. This is a fair allowance in IOU. order that citizens may make usual and necessary ISSUE payments to the state, such as DMV registration, tax payments, and school tuition. As the Arc of On June 24, 2009, the Sacramento Bee again California advocates in support of the bill, "AB 1506 reported that the state's fiscal situation was alleviates these problems by requiring the state to desperate. "State controller John Chiang warned accept its own credit." Why should ordinary today that if legislators and Gov. Arnold Californians' efforts to take care of their payments Schwarzenegger fail to come up with abudget- on time be refused, denying citizens' option to use balancing package in the next week, he would begin the very monetary instrument their state saw fit to paying California's bills with IOUs on July 2." Since issue to them? And if the state won't accept its own then, the state has dispensed 101,930 IOUs, an credit, why should anyone else? equivalent of $389 million in vital payments that is effectively being denied to service providers, non- SUPPORT profit organizations, and taxpayers. • California State Controller John Chiang Existing law already allows the state to distribute • The Arc of California IOUs. According to Government Code section • California Association of Health Facilities 17203, "Such registered warrants are acceptable and • San Diego County Medical Society may be used as security for the faithful performance • St. Madeleine Sophie's Center of any public or private trust or obligation or for the • San Diego Regional Center performance of any act, including the use of such • Noah Homes registered warrants by banks and savings and loan • The Village at Walpert Center associations as security for deposits of funds of any • Home of Guiding Hands county, municipal or public corporation, district, • Santee School District political subdivision, or state agency." This reminds • Julian Community Services District us of Wimpy's famous line, "I'd gladly pay you • Lakeside Union School District Tuesday for a hamburger today." So, the inequity • City of Oceanside then is revealed by the peoples' inability to use those • Otay Water District instruments in a practical way. • Southwest California Legislative Council • Helix Water District Board of Directors August 11. 2009 • County of San Diego Board of Supervisors • Chief Executive Officer and President Valerie • San Diego Regional Chamber of Commerce Harrison, Rancho-San Diego-Jamul Chamber of • Oceanside Chamber of Commerce Commerce • San Diego East County Chamber of Commerce • Administrator Kevin Miller, Foothills Christian • Borrego Springs Chamber of Commerce Church • San Marcos Chamber of Commerce • Yehudi Gaffen, Founder of Gafcon • San Diego North Chamber of Commerce • President Thomas Guth, RGP Prosthetic Research • People's Advocate, Inc. Center • Waste Management • Executive Vice President Stephen Zolezzi, Food & • Associated General Contractors of America - San Beverage Association of San Diego Diego Chapter • Chief Executive Officer Etienne Runge, R2A • Associated Builders and Contractors - San Diego Architecture Chapter • President Joe Mackey, XL Staffing, Inc. • Associated Builders and Contractors of California • Bruce Mayclin, Vanguard Cleaning Systems, Inc. • Pacific Association of Building Service • President Gloria Freeman, Staff USA, Inc. Contractors • President Ginter Hitzkc, Hitzke Development • Independent Maintenance Contractors Association Corporation • Bill Leonard, State Board of Equalization • Vice President Jeanne Phillips, Sundance • Supervisor Dianne Jacob, County of San Diego Corporate Supply, Inc. • Supervisor Bill Horn, County of San Diego • Owners Oscar & Olga Worm, West Coast • Supervisor Ron Roberts, County of San Dicgo Barbecue and Catering • Mayor Bud Lewis, City of Carlsbad • President Julie Brown, San Diego Insurance • Vice Mayor Brian Jones, City of Santee Staffing • Mayor Mark Nielsen, City of San Juan Capistrano • President Teresa Johnson, Manos and Associates, • President Robert Shield, Grossmont Union High Inc. School District • Chief Operating Officer Thomas Tassinari, • Christopher Ahrens, MiraCosta College Student Synergy Solutions Ambassador • President Shannon Erdell, TLC Staffing • Councilmember Ernest Ewin, City of La Mesa • Chief Executive Officer Judith R. Lawton, TLC • Councilmember David W Roberts, City of Solana Staffing Beach FURTHER INFORMATION • President Richard S. Fiore, Moulton Niguel Water District David Yow, by phone at (916) 319-2077 or email at • Councilmember Mary England, City of Lemon clnvid.i,otv@nsm.cn.;ov. Grove • Mayor Mark Lewis, City of El Cajon • Superintendent Janice Cook, Cajon Valley Union School District • Boardmember Karric Scully Johnston, San Miguel Fire District • Superintendent Ernie Anastos, Lemon Grove School District • President David Kulchin, Leucadia Wastewater District • Councilmember Mark Packard, City of Carlsbad • President James Sticringer, Grossmont Healthcare District • Assistant Superintendent of Business Services Mays Kakish, Beaumont Unified School District • Mayor Jim Desmond, City of San Marcos • President James Carney, Palo Verde Healthcare District Board of Directors August 11. 2009 ITEM NO. 9.4 AGENDA REPORT Meeting Date: August 27, 2009 Budgeted: N/A Total Budget: N/A To: Board of Directors Cost Estimate: N/A Funding Source: N/A From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: N/A Prepared By: Annie Alexander, Executive CEQA Compliance: N/A Secretary Subject: Nominations for Association of California Water Agencies (ACWA) President and Vice President SUMMARY: ACWA's Nominating Committee is responsible for submitting a slate of candidates for President and Vice President to the general membership at the Fall Conference. The YLWD Board of Directors has the option of nominating one of its own Directors for these slates or supporting the nomination of another candidate. Both must be performed by resolution. STAFF RECOMMENDATION: That the Board of Directors discuss and consider nominations for ACWA President and Vice President. DISCUSSION: Individuals being nominated for ACWA President or Vice President must meet the following criteria in order to be considered by the Nominating Committee: . Be an elected or appointed Director of an ACWA member agency. . Receive an official resolution of nomination from the agency for which they serve. . Submit a resume highlighting their qualifications for the position. ACWA elections will take place at the ACWA Fall Conference in San Diego, CA. If elected, the candidates would begin their two-year term as ACWA President or Vice President on January 1, 2010. A certified copy of an adopted resolution nominating a candidate will need to be submitted to ACWA on or before September 1, 2009. As mentioned above, the YLWD Board of Directors has the option of nominating one of its own Directors as a candidate for one of these offices. Staff has prepared the attached corresponding resolution should the Board decide to pursue this option. Other nominations received by ACWA to date are as follows: President Paul Kelly, Sonoma County Water District Vice President Randy Record, Eastern Municipal Water District Peer Swan, Irvine Ranch Water District Douglas J. Reinhart, President of the Board of Directors of the Irvine Ranch Water District has also requested that the District support the nomination of Peer Swan as Vice President of ACWA by adopting the attached corresponding resolution. Staff is requesting that the Board consider the following options: 1. Nominate a YLWD Board member as a candidate for President or Vice President and approve the corresponding resolution. 2. Support the nomination of another candidate as a candidate for President or Vice President by minute order. 3. Support the nomination of Peer Swan as a candidate for Vice President and approve the corresponding resolution. 4. Take no action at this time. ATTACHMENTS: Name: Description: Type: ACWA_Call _for Nominations.pdf Cover Letter Backup Material Resolution 09-XX - ACWA Candidate Nomination.doc Resolution Resolution Nomination of Peer Swan.pdf Cover Letter Backup Material Resolution 09-XX - Resolution Resolution _Nominating Peer _Swan _as ACWA_Vice _President.doc Irl Association of California Water Agencies Since 1910 MEMORANDUM DATE: JUNE 23, 2009 TO: ACWA REGULAR MEMBER PRESIDENTS AND GENERAL MANAGERS FROM: ACWA NOMINATING COMMITTEE SUBJECT: CALL FOR CANDIDATE NOMINATIONS ACWA's Nominating Committee is responsible for submitting a slate for President and Vice President to the Qeneral membership meeting during the Fall Conference. Nominations must be received in the ACWA office by September 1, 2009 to be considered by the committee. Candidate interviews are slated for September 10. The following criteria must be met for names to be considered: • Only elected or appointed directors of member agencies shall be eligible for election to the officer positions. • Nominations of qualified candidates are encouraged from all water districts. • An official resolution of nomination from the agency on which the individual serves indicating the agency's support and signed by an authorized signatory (sample attached). • Resume of the individual, highlighting qualifications for the position. It is not necessary to have additional letters or resolutions of support from other agencies, but the Committee will review all materials received. Association of California Water Agencies i?10 K Street, SL11W 100, S,I(I-Xncnlo, Giliioini,i 95814-916/441-4545 FAX 916/32 7-484y Hall of the States 400 N. Capitol St., N.W., Suite 35i South, Washington, D.C. 20001-1512 202/434-4760 1AX 20214 14-4763 www.acwanet.com Nominating Committee Memo June 23, 2009 Page 2 Some of the criteria outlined above come fro n a board policy that will also impact nominations from the floor. The policy reads: "All nominations received for the positions of ACWA President and Vice President shall be accompanied by a resolution of support from the ACWA member agency on whose board the nominee serves, and signed by an authorized signatory of the Board of Directors. This policy applies to nominations received in the ACWA office prior to elections, as well as to all nominations received from the floor at the general session during the floor nomination process." We also ask that regions not be approached for their support since the voting members of the Nominating Committee are the region chairs. We appreciate your interest and participation in this process to find the best-qualified individuals to serve in representing all members of ACWA. Thank you for your consideration of our request. Members of the Nominating Committee are: • Paul Heliker Region 1 • Eric Larrabee, Chair Region 2 • Ron Nelson Region 3 • Robert Nees Region 4 • Katy Foulkes Region 5 • Chris Kapheim Region 6 • Bill Taube Region 7 • Gail Pringle Region 8 • John Rossi Region 9 • Mark Weston Region 10 Should you have any questions regarding this process, please contact Jan Jennings, Director of Administration at the ACWA Office (916) 441-4545. Enclosure RESOLUTION NO. 09-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT IN SUPPORT OF THE NOMINATION OF AS A CANDIDATE FOR THE POSITION OF ACWA WHEREAS, ACWA has announced that a nominating committee has been formed to develop a slate of candidates for the ACWA officers; and WHEREAS, the individual who fills an officer position will need to have a working knowledge of water industry issues and concerns, posses strength of character and leadership capabilities, and be experienced in matters related to the performance of the duties of the office; and WHEREAS, this person must be able to provide the dedication of time and energy to effectively serve in this capacity; and WHEREAS, has served in a leadership role as a member of the Yorba Linda Water District Board of Directors since ; and WHEREAS, (list position held to demonstrate knowledge of water and leadership); and WHEREAS, (list position held to demonstrate knowledge of water and leadership); and WHEREAS, it is the opinion of the Yorba Linda Water District Board of Directors that possesses all of the qualities needed to fulfill the duties of the office of ACWA NOW THEREFORE, BE IT RESOLVED, that the Yorba Linda Water District Board of Directors wholeheartedly supports , for nomination as a candidate for the office of ACWA , pledging the District's support of his endeavors in fulfilling the duties of this office if elected. Resolution No. 09-XX ACWA Candidate Nomination 1 PASSED AND ADOPTED this 27th day of August 2009, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: John W. Summerfield, President Yorba Linda Water District ATTEST: Ken Vecchiarelli, Secretary Yorba Linda Water District Resolution No. 09-XX ACWA Candidate Nomination 2 AUG 1 9 2000 I. Rl' 1 E H MR Lll DISTRICT Et7L? Sand L- yC)n ,4 mnu • r'O ?ci.x 5' tk? • 19 7 oft) • (94 7! 453 K7CJ • vuw i tivd xxr August 18, 2009 Mr. Kenneth Veechiarelli Yorba Linda WD PO Box 309 Yorba Linda, CA 92885 Subject: IRWD Director Peer Swan's Nomination as ACWA Vice President Dear Mr. Kenneth Vecchiarelli: On July 13, 2009, The Irvine Ranch Water District (IRWD) Board of Directors unanimously approved a resolution supporting the nomination of Director Peer Swan as Vice President of the Association of California Water Agencies (ACWA). On behalf of the Board, I respectfully request that you join us in supporting Peer Swan by adopting a similar resolution. Director Swan is a committed statewide leader in the water industry with 30 years of experience and is uniquely qualified for the position of ACWA Vice President. Director Swan's deep knowledge and understanding of critical water issues facing California would be a great benefit to the ACWA community. As Vice President, Director Swan has committed to work with the ACWA President, the ACWA Board of Directors and ACWA management staff on the following three key objectives: Implement Actions to Accomplish the "Blueprint:" Complete a performance evaluation of ACWA's effectiveness in achieving the "Blueprint for California's Wetter: No rime to Waste." Identify and prioritize areas for improvement, and identify specific staff resources and member support needed to accomplish the Blueprint's objectives. Provide Strong Leadership for a Delta Solution: Pursue the historic opportunity available to ACWA to provide a central leadership role in a comprehensive solution for the Delta that resolves and sustains water supply, water quality, and environmental objectives through the Bay-Delta Conservation Plan, legislative actions and other processes. Support Member Agencies' Dater Resource and Energy Management Objectives: Provide assistance to ACWA's member agencies by identifying funding opportunities and providing regulatory advocacy for local resource development, meaningful and effective water use efficiency programs, and energy/greenhouse gas reduction measures. Director Swan is seeking the office of Vice President after serving as Vice Chair of ACWA's Region 10 Board of Directors, and as such is a member of the ACWA Board of Directors. Swan has served on the ACWA Finance Committee, the Groundwater Committee and has recently Yorba Linda WD - IRWD Director Peer Swan's Nomination as ACWA Vice President August 18, 2009 Page 2 been active in proposing and developing innovative statewide solutions to critical water supply conveyance issues now faced by the California Bay-Delta estuary. Director Swan was first elected to the Irvine Ranch Water District Board of Directors in 1979. After a term as Vice President of the Board his fellow Directors elected him President, a position he held from December 1981 until December 1995 and again in 2006. He currently serves as chairman of the Finance and Personnel Committee, serves on the Water Banking Committee and is a member of several Ad Hoc Committees. Director Swan was re-elected to the IRWD Board without opposition in 2006 and his current term runs through 2010. Further, Director Swan's current list of community and professional involvement includes membership as the President of the Board of the Water Advisory Committee of Orange County, the President of the Board of the San Joaquin Wildlife Sanctuary, and member of the Steering Committee of the Southern California Water Dialog Committee. For your convenience, attached is a sample resolution in support of Director Swan. Resolutions are due by September 1, 2009, and should be sent to the Association of California Water Agencies, 910 K Street, Suite 100, Sacramento, CA 95814-3577. ACWA elections will take place at the ACWA Fall Conference in San Diego, CA. If elected, Director Swan would begin his two-year term as ACWA Vice President on January 1, 2010. On behalf of the Irvine Ranch Water District Board, thank you for your support for Director Swan's nomination. If we can be of further assistance, please do not hesitate to contact me or General Manager Paul Jones at 949-453-5310. Sincerely, Douglas J. Reinhart President RESOLUTION NO. 09-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT PLACING IN NOMINATION PEER A. SWAN AS VICE PRESIDENT OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES WHEREAS, the Board of Directors of the Yorba Linda Water District has been made aware of the call for nominations for Vice President of the Association of California Water Agencies; and WHEREAS, Irvine Ranch Water District's Director Peer A. Swan has indicated a desire to serve as Vice President of the Association of California Water Agencies; and WHEREAS, if elected Director Swan plans to work with the ACWA President, the ACWA Board of Directors and ACWA management staff to implement actions to accomplish the goals of the ACWA Blueprint; provide strong leadership for a Delta solution that resolves and achieves the co-equal goals of sustaining water supply and quality and protecting environmental objectives; and to support member agencies water resource and energy management objectives by identifying funding opportunities and providing regulatory and legislative advocacy for local resource development and effective water use efficiency programs; and WHEREAS, Director Swan is seeking the office of Vice President after serving as Vice Chair of the Association of California Water Agencies' Region 10 Board of Directors and as such is a member of the Association of California Water Agencies Board of Directors; and WHEREAS, over the years Director Swan has served on several Association of California Water Agencies Committees including its Finance Committee and Water Management Committee, and has recently been active in two task forces developing innovative statewide solutions to the critical water supply conveyance and conservation issues now faced in California; and WHEREAS, Director Swan is a committed and experienced leader in the water industry and his in-depth knowledge and understanding of critical water issues facing California would be a great benefit to the Association; and WHEREAS, Director Swan has further demonstrated his leadership experience by serving on a wide variety of Boards in his community including the YMCA of Orange County; the Orange Coast College Foundation, where he was the founding Treasurer of the Board; the Orange County Sanitation District where he served as Vice Chairman for six year; and Founding Director of the Board of the National Water Research Institute; and Resolution No. 09-XX Nomination of Peer A. Swan as Vice President of ACWA 1 WHEREAS, the Association of California Water Agencies is the largest coalition of public water agencies in the country and the premier water organization in California. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. Affirms its support for the nomination of Peer A. Swan for Vice President of the Association of California Water Agencies, and the Secretary is hereby directed to forward a certified copy of this resolution to the Association of California Water Agencies. PASSED AND ADOPTED this 27th day of August 2009, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: John W. Summerfield, President Yorba Linda Water District ATTEST: Ken Vecchiarelli, Secretary Yorba Linda Water District Resolution No. 09-XX Nomination of Peer A. Swan as Vice President of ACWA 2 ITEM NO. 10.4 AGENDA REPORT Meeting Date: August 27, 2009 Subject: General Counsel's Report ATTACHMENTS: Name: Description: Type, BBK Bulletin.pdf BBK Bulletin Backup Material Court Holds Monthly Minimum Charge for Water and Sewer Not a Standby Fee or Assessment Under Prop. 218: Best Best & Krieger, California Law 1 5-1' B LST . iL.GL;it_ Bulletin: Court Holds Monthly Minimum Charge for Water and Sewer Not a Standby Fee or Assessment Under Prop. 218 August 8, 2009 A court of appeal has ruled that public agencies may impose a minimum monthly charge on parcels with connections to utility systems for the basic cost of providing water or sewer service, regardless of actual use. II RELATED PRACTICES Such a charge is imposed for an immediately available property-related ■ Municipal & Redevelopment service as defined in the California Constitution and consequently does Law not require ballot approval by affected owners. . Public Finance The ruling in Paland v. Brooktrails Township Community Services District . Special Districts is important to public agencies that impose minimum monthly charges in . Special Districts Public Finance order to fund the ongoing maintenance and operation of the water and sewer systems necessary to keep those systems immediately available to inactive connections. Parcels connected to the Brooktrails Township Community Services District (the "District") water system are charged connection fees at the time of hookup, and thereafter a fixed monthly charge and a usage-based charge for water service. The substantive provisions of Article XIII D, section 6 of the Constitution establishes requirements for the adoption of water service fees. It provides "[n]o fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Fees or charges based on potential or future use of a service are not permitted." Standby charges are classified as assessments and may not be imposed without compliance with the ballot approval process, according to the same article of the Constitution under Section 4. The plaintiff in this case connected his parcel to the water system and paid the District's connection fees. In the decades that followed, he periodically discontinued water service to his property. Beginning in 2003, the District began imposing the fixed monthly charge on parcels with existing connections that were inactive because the parcels were either undeveloped or unoccupied, or because the owners had temporarily discontinued their service. The plaintiff challenged imposition of the fixed monthly charge on his inactive connection, claiming that water service was not immediately available to him and that the charge was therefore in the nature of a standby fee. Because the District did not comply with the ballot approval provisions of Section 4 required for adopting standby charges, he claimed the charge was invalid. The court concluded that the "immediately available" requirement of Section 6 is logically focused on the agency's conduct, not the property owner's volitional decision to request service. "As long as the agency has provided the necessary service connections at the charged parcel and it is only the unilateral act of the property owner (either in requesting termination of service or failing to pay for service) that causes the service not to be actually used, the service is `immediately available' and a charge for the service is a fee rather than an assessment (assuming the http://www.bbklaw.com/news-firm-371.html?print=1[8/28/2009 1:31:27 PM] Court Holds Monthly Minimum Charge for Water and Sewer Not a Standby Fee or Assessment Under Prop. 218 : Best Best & Krieger, California Law other substantive requirements of a fee are satisfied)." For more information regarding this decision and the impact it may have on your agency, please contact your Best Best & Krieger Special Districts attorney, Municipal Law attorney or Kelly J. Salt for assistance. Disclaimer: BB&K eBulletins are not intended as legal advice. Additional facts or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information in this communique. ©2009 Best Best & Krieger LLP http://www.bbklaw.com/news-firm-371.html?print=1[8/28/2009 1:31:27 PM] ITEM NO. 11.1 AGENDA REPORT Meeting Date: August 27, 2009 Subject: Executive Administrative-Organizational Committee (Summerfield/Mills) Alternate: Collett Minutes of meeting held August 18, 4:00 p.m. Meeting scheduled for September 15, 4:00 p.m. has been rescheduled to September 16, 4:00 p.m. ATTACHMENTS: Name: Description: Type: 081709 EAO - Minutes.doc EAO Mtg Minutes 08/17/09 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT EXEC-ADM IN-ORGANIZATIONAL COMMITTEE MEETING August 17, 2009 A meeting of the Executive-Administrative-Organizational Committee was called to order by Director Summerfield at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE STAFF Director John Summerfield, Chair Ken Vecchiarelli, General Manager Director William R. Mills Pat Grady, Assistant General Manager 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. Proposed Payment Plan for Grandview Sewer Connection Mr. Vecchiarelli reported that staff met with Ante Marovic concerning a balance of $9,000 due to the District for a sewer connection. Mr. Marovic had offered to pay $1,000 per month until the balance was paid off. The Committee was agreeable to the payment terms, provided that some amount of interest be included. The Committee requested that staff evaluate what the District could legally charge for interest and submit the item for Board approval on the Consent Calendar. 2.2. Draft Responses to 2009 Grand Jury Reports Mr. Grady presented the two draft responses to the Orange County Grand Jury related to "Paper Water" and "New Era for Public Involvement". The Committee made inquiry related to the percentage of recycled water for direct use as depicted in the graph provided by MWDOC. Staff will contact MWDOC for clarification. The Committee also recommended that the section relating to holding Board meetings in the evenings include information as to the additional staff cost for doing so. The draft responses will be presented to the Citizens Advisory Committee on August 24, 2009 and the Board for consideration on August 27, 2009. 3. DISCUSSION ITEMS 3.1. Request for Letter of Support for AB 1506 Mr. Vecchiarelli reported that a request was made from the District to support AB 1506, relating to offsetting debts owed to the State with State issued IOU's. After a brief discussion, the Committee requested this item be placed on the next Board meeting agenda for consideration. 1 3.2. Annexation to OCWD Mr. Vecchiarelli discussed the cost benefits of annexing the remainder of YLWD's service area into OCWD. The Committee concurred with staff and directed that a Letter of Intent be sent to OCWD requesting annexation. Staff will place this item for Board consideration on the agenda for the first meeting in September. 3.3. City of Yorba Linda and City of Placentia Sewers Mr. Vecchiarelli presented this item and suggested that the District open a direct dialogue with the City of Yorba Linda to discuss ownership and the ongoing maintenance of the sewer system currently owned and maintained by the City. Staff reported that residents within this area would pay the current YLWD sewer rates if the facilities were transferred to YLWD. The Committee recommended that a meeting be held among President Summerfield, the General Manger, the Mayor and the City Manager to discuss this matter. 3.4. Board Member Attendance at MWDOC and OCWD Board Meetings on a Monthly Basis Mr. Vecchiarelli indicated that Board member attendance at both MWDOC and OCWD Board meetings periodically would be beneficial to show support for both agencies. After discussion, the Committee recommended that staff review each agenda and determine if certain business items warrant attendance by a Board member. If so, staff will solicit a volunteer at the next YLWD Board meeting or personally make contact with Board members. 3.5. Report on Legislative Activities - Sacramento Advocates Item Nos. 3.5. and 3.6. were discussed at the same time. 3.6. Report on Grant Activities - Townsend Public Affairs The Committee reviewed the legislative report from Sacramento Advocates and the grant activities report from Townsend Public Affairs. Discussion took place regarding the value received from these firms in combination with legislative updates from legal counsel. The Committee suggested that this item be discussed further by the full Board at an upcoming Board meeting. 3.7. Report on Legislative Bills - McCormick, Kidman & Behrens The Committee reviewed the report prepared by McCormick, Kidman & Behrens and had no questions. 3.8. General Counsel's Monthly Summary Billing Report The Committee had no questions regarding the report. 3.9. Directors' and General Manager's Fees and Expenses (Apr-Jun). The Committee had no questions regarding the report. 2 3.10. Future Agenda Items and Staff Tasks None. 4. ADJOURNMENT 4.1. The Committee adjourned at 5:40 p.m. The next regular meeting of the Executive-Administrative-Organizational Committee has been rescheduled to September 16, 2009 at 4:00 p.m. 3 ITEM NO. 11.8 AGENDA REPORT Meeting Date: August 27, 2009 Subject: Citizens Advisory Committee • Minutes of meeting held August 24, 8:30 a.m. (To be provided at the meeting.) • Meeting scheduled for September 28, 8:30 a.m. ATTACHMENTS: Name: Description: Type: 082409 - CAC Minutes.doc CAC Mtg Minutes 08/24/09 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT CITIZENS ADVISORY COMMITTEE MEETING August 24, 2009 A meeting of the Citizens Advisory Committee was called to order at 8:30 a.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE STAFF Cheryl Spencer Lindon Baker Ken Vecchiarelli, General Manager Gary Melton Marlo Naber-Mole Pat Grady, Asst. General Manager Gene Scearce Phil Hawkins Cindy Botts, Management Analyst Gregory Meyers Robert Kiley OTHER ATTENDEES Mark Schock 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS 2.1. CAC Recommendation on Water Rate Increase at Public Hearing Mr. Vecchiarelli quickly explained again why the costs of doing business have increased and the relationship of these costs to the possible water rate increase. Several CAC members stated that they would attend the hearing and Vice-Chair Greg Meyers requested that the CAC members present at the meeting let him know what the consensus of the Committee was, in order to present to the Board at the Public Hearing. Four members commented and the consensus from those four was that the Committee supported the tiered rate increase, at the full amount proposed. No other Committee members wished to comment. Mr. Vecchiarelli again reminded all members that as residents they were entitled to speak at the Public Hearing and their opinions did not need to necessarily reflect the opinion of the Committee as a whole. 2.2. Orange County Grand Jury Reports Mr. Grady gave a PowerPoint presentation on the District's response to the Grand Jury Reports and requested input from the Committee. The Committee made several suggestions in wording changes, but essentially agreed with the District's stance on both reports. In the "Paper Water" report, several Committee members stated that the District's draft response to the Grand Jury's recommendation that each agency should prepare a Water Element to the respective City's General Plan sounded as though the District was not willing to work with the City on developing a Water Element. Mr. Grady responded that as YLWD is not a part of a City, YLWD cannot require, or write for them, a Water Element to include within 1 their General Plan, and legally, YLWD is required to respond to Grand Jury recommendations with either "yes, we will implement" or "no, we will not implement". After re-wording with some suggestions from the Committee, Mr. Grady indicated that the draft response would be changed to state that we would be willing to work with the City to develop a Water Element, should either City choose to do so. In the "Public Involvement" report, several committee members disagreed with the District's response to the Grand Jury's recommendation that District's should schedule Board meetings at times that would generate maximum attendance. These members thought that regardless of low attendance at evening Board meetings, meetings should continue to be held in the evening. Another committee member agreed with the District's response, stating that if attendance was as low in the evenings as it is during morning meetings, it is not necessary for the District to incur additional overtime labor costs for staff to attend. Another topic of discussion within the "Public Involvement" report was that of the Grand Jury's recommendation that all water districts should use the election process to fill Board vacancies, rather than appoint members. The District's draft response was that the costs of special elections are prohibitive and in regards to the YLWD Board, appointments have not happened that frequently. One Committee member brought up the fact that there may be strong public perception that this may be occurring, even within the YLWD Board, due to high profile stories in the media. Another couple of Committee members suggested that in order to avoid any difficulties with public perception, the Board may wish to consider a policy that states that after the resignation of a Board member, the Board may wish to offer the position to the "runner-up" in that member's election, particularly if the resignation occurs soon after the election of that Board member by the public. 2.3. Water Conservation Ordinance Progress Report Mrs. Botts gave a quick report on the progress of the conservation efforts and on Ordinance compliance for August. 3. ADJOURNMENT 3.1. The meeting was adjourned at 10:45a.m. The next regular meeting of the Citizens Advisory Committee will be held September 28, 2009 at 8:30 a.m. 2 ITEM NO. 13.1 AGENDA REPORT Meeting Date: August 27, 2009 Subject: Meetings from August 28, 2009 thru September 30, 2009 ATTACHMENTS: Name: Description: Type. BOD Activities Calendar.pdf BOD Activity Calendar Backup Material Board of Directors Activity Calendar Event Date Time Attendance bv: September 2009 Public Information-Technology Committee Meeting Tue, Sep 1 4:OOPM Collett/Beverage Yorba Linda City Council Tue, Sep 1 6:30PM Mills MWDOC/MWD Workshop Wed, Sep 2 7:30AM Staff OCWD Board Wed, Sep 2 5:OOPM Staff Planning-Engineering-Operations Committee Meeting Thu, Sep 3 4:OOPM Mills/Armstrong Finance-Accounting Committee Meeting Tue, Sep 8 4:OOPM Beverage/Summerfield Yorba Linda Planning Commission Wed, Sep 9 7:OOPM Collett Board of Directors Regular Meeting Thu, Sep 10 6:30PM Personnel-Risk Management Committee Meeting Mon, Sep 14 4:OOPM Armstrong/Collett Yorba Linda City Council Tue, Sep 15 6:30PM Armstrong MWDOC Board Wed, Sep 16 8:30AM Staff Exec-Admin-Organizational Committee Meeting Wed, Sep 16 4:OOPM Summerfield/Mills OCWD Board Wed, Sep 16 5:OOPM Staff City of Placentia Ad Hoc Committee Meeting Thu, Sep 17 4:OOPM Beverage MWDOC/OCWD Ad Hoc Committee Meeting Tue, Sep 22 4:OOPM Mills/Collett Yorba Linda Planning Commission Wed, Sep 23 7:OOPM Summerfield Board of Directors Regular Meeting Thu, Sep 24 8:30AM Citizens Advisory Committee Meeting Mon, Sep 28 8:30AM 8/21/2009 3:44:06 PM