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HomeMy WebLinkAbout2024-01-11 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, January 11, 2024, 8:00 AM 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS This meeting will be held in person. For public convenience, the meeting can also be accessed via internet-based service or telephone as indicated below. For questions regarding participation, please call the Board Secretary at (714) 701-3020. Computer/Mobile Device: hhttps://us06web.zoom.us/j/84746405669 Telephone: (669) 444-9171 or (669) 900-6833 Meeting ID: 847 4640 5669 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL Trudi DesRoches, President Tom Lindsey, Vice President Brett R. Barbre, Director Phil Hawkins, Director 5. ADDITIONS/DELETIONS TO THE AGENDA Items may be added to the agenda upon determination by a two-thirds vote of the Board, or a unanimous vote if only three Directors are present, that there is a need to take immediate action which came to the District's attention subsequent to the agenda being posted. (GC 54954.2(b)(2)) 6. AB 2449 TELECONFERENCE REQUESTS 7. SEATING OF DIRECTOR 7.1. Ratify Appointment of Eugene "Gene" J. Hernandez to Board of Directors and Administer of Oath of Office 8. SPECIAL RECOGNITION 8.1. Recognition of J. Wayne Miller, Ph.D., Outgoing Director, for 7 Years of Service to YLWD 9. PUBLIC COMMENTS Any individual wishing to address the Board (or Committee) is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Chair 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 three minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3) 10. 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. 10.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager Page 1 of 119 11. REPORT FROM CLOSED SESSION - ANTICIPATED TO BEGIN AT 8:30 AM 12. PUBLIC COMMENTS CONTINUED 13. INTRODUCTIONS AND PRESENTATIONS 13.1. Elected Official Liaison Reports 14. CONSENT CALENDAR All items on the consent calendar are considered routine and may be approved by a single motion. There will be no discussion of these items unless a member of the Board, staff, or public requests separate consideration. 14.1. Minutes of the Board of Directors Meetings Held November 21 - December 11, 2023 Recommendation: That the Board of Directors approve the minutes as presented. 14.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $2,927,674.72 14.3. Budget to Actual Reports for Period Ended November 30, 2023 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for the Period Ended November 30, 2023. 14.4. Cash and Investment Report for Period Ended November 30, 2023 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the Period Ended November 30, 2023. 14.5. Amendment to Personnel Manual for Unrepresented Employees Recommendation: That the Board of Directors adopt Resolution No. 2023-XX amending the Personnel Manual for Unrepresented Employees for the remainder of Fiscal Years 2024-2025. 14.6. Award of Construction Contract for Camino De Bryant Waterline Replacement Phase 1 Recommendation: That the Board of Directors award the Construction Contract for the Camino De Bryant Waterline Replacement Phase 1 to T.E. Roberts, Inc. for $1,500,830.10, Job No. J-2023-24 14.7. Award of the Construction Contract for Main Street Sewer Replacement Project Recommendation: That the Board of Directors award the Construction Contract for the Main Street Sewer Replacement Project to GCI Construction, Inc. for $396,418.00, Job No. J-2020-63S 14.8. Final Payment and Notice of Completion for Well 22 Equipping Project Recommendation: That the Board of Directors approve zero dollars final payment to the contractor and authorize staff to file the Notice of Completion for the Well 22 Equipping Project, Job No. 2009-22 #22. 14.9. Final Payment and Notice of Completion for Mountain View Waterline Replacement Project Recommendation: That the Board of Directors approve $19,546.25 final payment to the contractor and authorize staff to file the Notice of Completion for the Mountain View Waterline Replacement Project, Job No. 2022-48. Page 2 of 119 15. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board (or Committee) discussions are needed prior to formal action. 15.1. Agency Designated Representative's Summary Recommendation Regarding Labor Negotiations with Unrepresented Employee (General Manager), and Proposed Amendment to Employment Agreement for Position of General Manager Recommendation: That the Board of Directors (1) approve the draft First Amendment to the Employment Agreement for the Position of General Manager as negotiated by the District's Designated Representative; and (2) adopt Resolution No. 2024-XX approving the Classification and Salary for the General Manager effective July 1, 2023 and rescinding Resolution No. 2022-28. 15.2. Request from City of Yorba Linda for District Participation as Stakeholder in Green Crest Drive Erosion Mitigation Recommendation: That the Board of Directors consider the City's request and provide direction to staff. 16. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board (or Committee) at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking advice and counsel. Time permitting, it is generally in the District’s interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 16.1. Board of Directors' Committee, Agency, and Intergovernmental Meeting Assignments 16.2. Board of Directors' Compensation 16.3. Strategic Plan Update 17. REPORTS, INFORMATION ITEMS, AND COMMENTS 17.1. Director's Reports 17.2. General Manager's Report 17.3. General Counsel's Report 17.4. Future Agenda Items and Staff Tasks 18. COMMITTEE REPORTS 18.1. Interagency Committee with MWDOC and OCWD 18.2. Joint Agency Committee with City of Yorba Linda 18.3. Joint Agency Committee with City of Placentia 18.4. Joint Agency Committee with City of Brea 18.5. Joint Agency Committee with Placentia-Yorba Linda Unified School District 19. BOARD OF DIRECTORS ACTIVITY CALENDAR 19.1. Meetings from January 12 - February 29, 2024 20. ADJOURNMENT 20.1. The next regular meeting is scheduled Thursday, January 25, 2024 at 8:30 a.m. Page 3 of 119 Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Non-exempt materials related to open session agenda items that are distributed to a majority of the Board of Directors (or Committee Members) less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District’s Administrative building located at 1717 E Miraloma Ave, Placentia CA 92870 during regular business hours. When practical, these materials will also be posted on the District’s website at https://ylwd.com/. (GC 54957.5) Accommodations for the Disabled Requests for disability-related modifications or accommodations, including auxiliary aids or services, required for participation in the above-posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24 hours in advance. (GC 54954.2(a)) Page 4 of 119 ITEM NO. 7.1. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Ratify Appointment of Eugene "Gene" J. Hernandez to Board of Directors and Administer of Oath of Office RECOMMENDATION: That the Board of Directors (1) adopt Resolution No. 2024-XX ratifying the appointment of Eugene "Gene" J. Hernandez to the Board of Directors; and (2) proceed with administering the Oath of Office. BACKGROUND: The attached resolution has been prepared for the Board to ratify action taken on January 4, 2024 to appoint Eugene "Gene" J. Hernandez to the office of Director. Also attached is the Oath of Office for administration. ATTACHMENTS: 1. Resolution No. 2024-XX - Ratifying Appointment of Director 2. Oath of Office Page 5 of 119 Resolution No. 2024-XX Ratifying Appointment of Eugene “Gene” J. Hernandez to Office of Director 1 RESOLUTION NO. 2024-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT RATIFYING THE APPOINTMENT OF EUGENE “GENE” J. HERNANDEZ TO THE OFFICE OF DIRECTOR OF SAID DISTRICT WHEREAS,J. Wayne Miller, Ph.D., who served as a dedicated Board member and community leader for seven years, resigned from the Office of Director effective Wednesday, November 15, 2023; and WHEREAS, Section 1780 of the California Government Code provides that a vacancy in the elective office of the Governing Board may be filled by appointment by the remaining Board members; and WHEREAS,the Board of Directors has determined that Eugene “Gene” J. Hernandez is qualified to hold the Office of Director of the Yorba Linda Water District. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: SECTION 1.Effective January 11, 2024, Eugene “Gene” J. Hernandez is hereby appointed to fill the vacancy on the Yorba Linda Water District Board of Directors for a term ending Friday, December 6, 2024 at 12:00 p.m. SECTION 2.The Board Secretary shall mail a certified copy of this resolution and the Oath of Office for Eugene “Gene” J. Hernandez to the Orange County Registrar of Voters and mail a revised Statement of Facts to the California Secretary of State. Page 6 of 119 Resolution No. 2024-XX Ratifying Appointment of Eugene “Gene” J. Hernandez to Office of Director 2 PASSED AND ADOPTED this 11th day of January 2024, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Trudi DesRoches, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed and approved as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 7 of 119 OATH OF OFFICE FOR PUBLIC OFFICERS AND EMPLOYEES (State Constitution, Art. XX. Sec.3 as amended) STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) I, ____________________________, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter. __________________________________________ Signature Subscribed and sworn to before me this _________ day of _____________, 20______. Signature of Person Administering Oath Printed Name and Title of Person Administering Oath Page 8 of 119 ITEM NO. 14.1. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Minutes of the Board of Directors Meetings Held November 21 - December 11, 2023 RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: 1. 2023-11-21 - Minutes - BOD Regular Meeting 2. 2023-11-27 - Minutes - BOD Special Meeting 3. 2023-12-11 - Minutes - BOD Regular Meeting Page 9 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 1 2023-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, November 21, 2023, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 8:30 a.m. 3. PLEDGE OF ALLEGIANCE Human Resources Analyst Jacqueline Segura led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Brett R. Barbre, President Mark Toy, General Manager Trudi DesRoches, Vice President John DeCriscio, Operations Manager Phil Hawkins Delia Lugo, Finance Manager Tom Lindsey Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Jacqueline Segura, Human Resources Analyst Joanna Gonzalez, Public Affairs Officer ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP President Barbre noted that Director J. Wayne Miller, Ph.D. had resigned from the Board which would be addressed later in the agenda. 5. ADDITIONS/DELETIONS TO THE AGENDA General Manager Toy noted the following amendments to the agenda packet: Item No. 11.2. Description for the disbursement to ACWA-JPIA should indicate the period of 10/01/23 – 09/30/24. Item No. 11.11. Needs to be removed from the agenda as the contractor has raised an issue that is currently under staff review. Item No. 12.1. A cost estimate for a potential election was distributed to the Board and made available to the public. Page 10 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 2 2023-XXX 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. PUBLIC COMMENTS (None) General Manager Toy recognized Human Resources Analyst Jacqueline Segura for being nominated as Employee of the Quarter for the first quarter of FY23-24. 8. ACTION CALENDAR 8.1.Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2023 Staff introduced Riley Greenlee, Assurance Manager for Lance, Soll & Lungard, LLP, who reviewed the interim and year-end fieldwork phases of the audit process. He noted that the District received an unmodified auditor’s opinion and summarized the results of the audit, changes from the prior fiscal year, and key financial highlights. President Barbre requested the reference to “City” be changed to “District” on the cover letter of the Independent Auditors’ Report. Mr. Greenlee then responded to questions regarding the purpose of various referenced GASB Statements and standard audit practices. President Barbre requested the following additional amendments: Letter to the Board of Directors and Customers Page 2 Change Board meetings held “monthly” to “bi-monthly”. Page 3 Change “helicopter hydrants” to “heli-hydrants”. Include note that “sewer maintenance charge” for sewer-only customers collected on property tax roll. Page 4 Change fully operational month/year for PFAS Treatment Plant from “April 2023” to “April 2022”. Page 6 Change effective date of approved 5-year rate structure from “July 1, 2022” to “July 1, 2021”. Director Barbre made a motion, seconded by Director Hawkins, to receive and file the Yorba Linda Water District Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023 including the requested amendments. Motion carried 4-0-0-0. Page 11 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 3 2023-XXX The following items were taken of order. 10. INTRODUCTIONS AND PRESENTATIONS 10.1.Elected Official Liaison Reports Yorba Linda Mayor Gene Hernandez commented on the positive benefits of joint agency committee meetings with YLWD and status of the Yorba Linda Housing Element. Placentia-Yorba Linda Unified School District Board Vice President Leandra Blades commented on a recent presentation by Mayor Hernandez and the proposed establishment of the Orange County School of Computer Science as a district-affiliated conversion charter school. 10.2.Funding Strategies for Transitioning Customers on Septic to Sewer Collection Staff introduced Paul Jones, P.E. and Jon Wells, P.E. of Dopudja & Wells, who outlined a proposal for conducting a Due Diligence Study for potential development of a septic to sewer conversion program for the District. This included an overview of related considerations and complexities of such a program in the District’s service area, key objectives and scope of the Study, and associated project budget and schedule. Discussion touched on the estimated number of customers on septic in surrounding communities as compared to the District, potential need for extending the District's existing sewer lines, environmental circumstances resulting in mandated conversion, incentives for customer conversion, and the potential need for forming a sewer assessment district. Director Lindsey made a motion, seconded by Director Hawkins, instructing the General Manager to engage Dopdja & Wells to conduct a Due Diligence Study for a total fee not to exceed $54,575. Motion carried 4-0-0-0. President Barbre requested staff ensure that preliminary cost information for implementation of a septic to sewer conversion program is available for consideration during the FY24-25 budget process. 12. ACTION CALENDAR CONTINUED 12.4.Review of Encroachment Policy Gonzalo Diaz, resident, inquired as to the applicability of this policy to the proposed equestrian easement at Highland Reservoir and commented on his recent discussions with staff. Page 12 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 4 2023-XXX General Manager Toy clarified that this agenda item was for review of the District’s Encroachment Policy and that feedback from residents regarding the proposed equestrian easement and other related matters would be presented for Board consideration and direction to staff at the regular meeting currently scheduled for December 14, 2023. Staff provided a brief overview of previous easement inspection efforts. Director Lindsey made a motion, seconded by Director Hawkins, to make no changes to the Encroachment Policy and for the Board to review the policy on an annual basis. President Barbre suggested that the policy be amended in Section 1.1. to include “agreements and agreements approved by minute action”; and that Section 3.2. reference “recorded” versus “written” easement. He also inquired as to why the City would be investigating and enforcing unpermitted encroachments as described in Section 4.1., and suggested the policy include a procedure for staff to conduct follow-up site inspections. General Counsel Gagen suggested that Section 3.2. reference “written and/or recorded” easement. Motion carried 4-0-0-0 to adopt the policy including the suggested amendments. 13. DISCUSSION ITEMS 13.1.Community Engagement and Outreach Activities Staff introduced Brian Lochrie, President, and Kelsey Eiben, Vice President, of CommunicationsLAB, and reviewed the District’s communications goals, objectives, strategies, and recent outreach activities. Ms. Eiben provided an overview of the District’s social media engagement efforts including the video series. Discussion touched on increasing the visibility of District capital improvement projects. Staff then reviewed planned outreach activities. Discussion continued on additional outreach activities and projects to be considered including the installation of informational plaques on walking trails near District facilities and infrastructure tours for the public. 12. ACTION CALENDAR CONTINUED 12.1.Filling Vacancy on Board of Directors President Barbre reviewed the options available for filling the vacancy on the Board. Discussion followed regarding filling the vacancy by appointment and Page 13 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 5 2023-XXX the schedule for posting the notice of vacancy, reviewing candidate applications, interviewing applicants, and appointing a successor. Director Lindsey made a motion, seconded by Director DesRoches, to fill the vacancy by appointment, post the notice of vacancy and application for appointment today, Tuesday, November 21, 2023 (due by December 27, 2023); review candidate applications on Monday, December 11, 2023 at 10:00 a.m.; perform first interviews on Tuesday, December 19, 2023 at 3:00 p.m.; perform second interviews on Thursday, January 4, 2024 at 9:00 a.m. if needed, and appoint a successor at the regular Board meeting on Thursday, January 11, 2024 at 8:30 a.m. Motion carried 4-0-0-0. President Barbre announced that Vice President DesRoches would be serving on the CIP Review Group in light of former Director Miller’s resignation. 9. ADJOURN TO YORBA LINDA FINANCING AUTHORITY REGULAR MEETING The meeting was adjourned to the Financing Authority Regular Meeting at 10:28 a.m. The meeting was reconvened at 10:31 a.m. 11. CONSENT CALENDAR President Barbre inquired as to the need for purchasing additional insurance for the employee benefits fair. Staff will obtain this information and report back to the Board. Director Hawkins made a motion, seconded by Director DesRoches, to approve the Consent Calendar with the previously noted amendment to Item No. 11.2. and exclusion of Item No. 11.11. Motion carried 4-0-0-0. 11.1.Minutes of the Board of Directors Meetings Held September 7 – October 19, 2023 Recommendation: That the Board of Directors approve the minutes as presented. 11.2.Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $4,890,587.72. 11.3 Unaudited Financial Statements for the First Quarter of Fiscal Year 2023-24 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the First Quarter of Fiscal Year 2023-24. Page 14 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 6 2023-XXX 11.4.Cash and Investment Report for the Period Ended September 30, 2023 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the Period Ended September 30, 2023. 11.5.Directors and General Manager Fees and Expenses Report for the First Quarter of Fiscal Year 2023-24 Recommendation: That the Board of Directors receive and file the Directors and General Manager Fees and Expenses Report for the First Quarter of Fiscal Year 2023-24. 11.6.Terms and Conditions for Water Service with TIG 8 LLC for Tract 19183 Recommendation: That the Board of Directors approve the Terms and Conditions for Water Service with TIG 8 LLC for Tract 19183, Job No. J-2023- 50. 11.7.Award of Construction Contract for Fiscal Year 2023-24 Sewer CIPP Rehabilitation Project Recommendation: That the Board of Directors award the Construction Contract for the Fiscal Year 2023-24 Sewer CIPP Rehabilitation Project to Nu- Line Technologies, LLC for $395,020.45, Job No. J-2023-40S. 11.8. Notice of Exemption for Camino De Bryant Waterline Replacement Project Phase 1 Recommendation: That the Board of Directors consent to filing the Notice of Exemption with the Orange County Clerk Recorder's office for the Camino De Bryant Waterline Replacement Project Phase 1, Job No. J-2023-24. 11.9.Notice of Exemption for Fiscal Year 2023-24 Pressure Regulating Stations Replacement Project Recommendation: That the Board of Directors consent to filing the Notice of Exemption with the Orange County Clerk-Recorder's Office for the Pressure Regulating Stations Replacement Project. 11.10.Notice of Completion for BNSF Waterline Crossing at Veterans Village and South Highland Avenue Project Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for the BNSF Waterline Crossing at Veterans Village and South Highland Avenue Project, Job No. J-2021-36. Page 15 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 7 2023-XXX The following item was removed from the agenda. 11.11. Notice of Completion for Well 22 Equipping Project Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for the Well 22 Equipping Project, Job No. 2009-22 #22. 12. ACTION CALENDAR CONTINUED 12.2. Amending Board of Directors Policies and Procedures Manual (Manual) General Manager Toy explained that based on General Counsel Gagen’s email to the Board dated November 13, 2023, staff and Counsel were recommending the Board adopt the proposed amendments to the Manual to ensure that the District has a Harassment, Discrimination, Retaliation Prevention Policy (HDRP) that governs Board conduct. He also introduced Danny Yu, Partner, at Liebert Cassidy Whitmore, who was available for any related questions. Discussion followed regarding the proposed investigation process and potential alternatives, the results of the survey of other agencies’ HDRP policies and copies thereof, the sufficiency of referencing Director compliance with all local/state laws and regulations pertaining to HDRP, addressing due process for a Director who may be the subject of a complaint, and ensuring that the Board retained the authority to govern itself. General Manager Toy noted that the purpose of the proposed amendments to this section of the Manual was to articulate a process for handling a complaint against a Director to help mitigate the District’s liability exposure. Discussion continued regarding the proposed responsibility for initiating an investigation and engaging an outside investigator, deferring consideration of this matter until after the vacancy on the Board is filled, and reference made to a separate HDRP policy applicable to District employees. Also discussed were procedures currently contained within the Manual addressing the process for handling allegations of misconduct and their sufficiency, and other governmental agencies’ inclusion of provisions applicable to elected officials in their employee HDRP policies. Consideration of this matter was deferred to the regular Board meeting on Thursday, January 25, 2024. Copies of other agencies’ HDRP policies will be included in the agenda packet. (Consideration of this matter was subsequently rescheduled for consideration at the Thursday, February 22, 2024 regular Board meeting.) Page 16 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 8 2023-XXX 12.3.Request for Proposals (RFP) for General Legal Counsel Services Staff explained the purpose for engaging independent legal counsel to review the draft RFP and noted the proposed schedule for selection of a firm and awarding a contract. Discussion followed regarding the proposed scope of services and whether labor expertise should be compulsory versus highly desirable, the proposed required qualifications, identification of sub- consultants, and the creation of a temporary sub-committee to review the submitted RFP’s. Also discussed was requiring representation in Sacramento and Washington D.C., experience with California labor, public contract, prevailing wage, and health and safety regulations, in addition to familiarity with the state budget process. Further discussion touched on having broad requirements and qualifications to encourage firm participation in the RFP process. Directors will forward their proposed revisions to staff for incorporation in a second draft of the RFP for consideration at the regular Board meeting on Thursday, December 14, 2024. (This meeting was subsequently rescheduled to Tuesday, December 12, 2024.) 14. REPORTS, INFORMATION ITEMS, AND COMMENTS 14.1.Director’s Reports (None) Director Lindsey requested staff contact Yorba Linda Council Member Carlos Rodriguez regarding AQMD’s proposed rule on emissions from linear generators. 14.2.General Manager’s Report (Included in the agenda packet.) President Barbre requested staff provide Townsend Public Affairs’ reports to the Board each month. 14.3.General Counsel’s Report (None) 14.4.Future Agenda Items and Staff Tasks (None) 15. COMMITTEE REPORTS 15.1.Interagency Committee with MWDOC and OCWD Miller / DesRoches – Next meeting will be scheduled when needed. 15.2.Joint Agency Committee with City of Yorba Linda Lindsey / DesRoches – Next meeting will be scheduled when needed. Page 17 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 9 2023-XXX 15.3.Joint Agency Committee with City of Placentia Lindsey / DesRoches – Next meeting will be scheduled when needed. 15.4.Joint Agency Committee with City of Brea Barbre / Lindsey – Initial meeting yet to be scheduled. 15.5.Joint Agency Committee with Placentia-Yorba Linda Unified School District Barbre / Lindsey – Next meeting will be scheduled when needed. 16. BOARD OF DIRECTORS ACTIVITY CALENDAR 16.1 Meetings from November 22 – December 31, 2023 16.2.Rescheduling Regular Board Meeting on Thursday, December 14, 2023 at 8:30 a.m. to Tuesday, December 12, 2023 at 8:00 a.m. Due to a schedule conflict, the Board agreed to reschedule the meeting. 16.3.Scheduling Dedication Ceremony for Well No. 22 This event was scheduled for Monday, December 11, 2023 at 2:00 p.m. 17. CLOSED SESSION The Board entered Closed Session at 11:26 p.m. 17.1.Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: General Manager Employee Organization: Yorba Linda Water District Employees Association 17.2.Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: General Manager Unrepresented Employees: All Unrepresented Classifications 17.3.Conference with Legal Counsel – Existing Litigation Pursuant to Paragraph (1) of Subdivion (d) of Section 54956.9 of the California Government Code Name of Case: YLWD v. Alex Winsberg (Orange County Superior Court – Case No. 30-2022-01284814-CU-OR-CJC) 17.4.Conference with Legal Counsel – Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: Orange County Water District, et al. v. 3M Company, et al. (Orange County Superior Court - Case No. 30-2020-01172419-CU-PL-CXC) Page 18 of 119 Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2023 at 8:30 a.m. 10 2023-XXX 17.5.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 17.6.Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: Andrew Gagen, General Counsel Unrepresented Employee: General Manager 18. REPORT FROM CLOSED SESSION The Board returned from Closed Session at 2:00 p.m. No reportable action was taken. A special Board meeting was scheduled Monday, November 27, 2023 at 3:00 p.m. 19. ADJOURNMENT 19.1.The meeting was adjourned at 2:00 p.m. Annie Alexander Board Secretary Page 19 of 119 Minutes of the YLWD Board of Directors Special Meeting Held November 27, 2023 at 3:00 p.m. 1 2023-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Tuesday, November 27, 2023, 3:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 3:00 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Brett R. Barbre, President Mark Toy, General Manager Trudi DesRoches, Vice President Tony Arambarri, Acting Asst Board Secretary Phil Hawkins Tom Lindsey 4. PUBLIC COMMENTS (None) 5. CLOSED SESSION The Board entered Closed Session at 3:01 p.m. 5.1.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 6. REPORT FROM CLOSED SESSION The Board returned to open session at 5:40 p.m. No reportable action was taken. 7. ADJOURNMENT 7.1.The meeting was adjourned at 5:40 p.m. Annie Alexander Recording Secretary Page 20 of 119 Minutes of the YLWD Board of Directors Special Meeting Held December 11, 2023 at 10:00 a.m. 1 2023-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Monday, December 11, 2023, 10:00 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 10:03 a.m. 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Brett R. Barbre, President (Arrived 10:10 a.m.)Mark Toy, General Manager Trudi DesRoches, Vice President Doug Davert, Assistant General Manager Phil Hawkins John DeCriscio, Operations Manager Tom Lindsey Delia Lugo, Finance Manager Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Joanna Gonzalez, Public Affairs Officer ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA (None) 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. PUBLIC COMMENTS Al Nederhood, resident, commented on campaign materials associated with the November 2022 election. 8. DISCUSSION ITEMS 8.1.Review Candidate Applications for Board Vacancy Discussion touched on the previous process to fill a vacancy on the Board, and the application review, candidate interview, and successor appointment schedule. Also discussed was the length and schedule for the first interviews. Page 21 of 119 Minutes of the YLWD Board of Directors Special Meeting Held December 11, 2023 at 10:00 a.m. 2 2023-XXX President Barbre suggested changing the appointment date to Thursday, January 4, 2024 at 9:00 a.m. and reposting the Notice of Vacancy. Director DesRoches made a motion, seconded by Director Lindsey, to (1) schedule interviews with all the applicants on Tuesday, December 19, 2023 as follows: Eugene “Gene” J. Hernandez at 3:00 p.m., Peggy Z. Huang at 3:30 p.m., and Chi-Chung Tang, Ph.D., P.E., at 4:00 p.m.; (2) to repost the Notice of Vacancy indicating appointment of a successor would take place on Thursday, January 4, 2024 at 9:00 a.m.; and (3) schedule administration of the Oath of Office on Thursday, January 11, 2024 at 8:30 a.m. Motion carried 4-0-0-0. 9. CLOSED SESSION The Board entered Closed Session at 10:17 p.m. 9.1.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 9.2.Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: Andrew Gagen, General Counsel Unrepresented Employee: General Manager 10. REPORT FROM CLOSED SESSION The Board returned to open session at 12:40 p.m. No reportable action was taken. 11. ADJOURNMENT 11.1.The meeting was adjourned at 12:40 p.m. Annie Alexander Board Secretary Page 22 of 119 ITEM NO. 14.2. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Keri Hollon, Accounting Assistant II SUBJECT: Payments of Bills, Refunds, and Wire Transfers RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $2,927,674.72. BACKGROUND: Section 31302 of the California Water Code says the District shall pay demands made against it when the Board of Directors has approved them. Pursuant to law, staff is hereby submitting the list of disbursements for December 7, 2023 through January 4, 2024, for the Board of Directors’ approval. Items within this disbursement list include: Ten Highest Expenses for Disbursement T. E. Roberts, Inc 675,132.41 J21-46 Imperial Highway Waterline Service Municipal Water District 416,903.66 Water Deliveries - Oct 2023 Pacific Hydrotech Corporation 354,531.40 J20-37 Timber Ridge Professional Services ACWA/JPIA 156,282.55 Medical & Dental Premium Jan 2024 Southern Calif Gas Co. 61,620.59 Gas Charges - Nov 2023 Various Locations City of Anaheim - Public Utilities 36,516.58 Electrical Charges Nov 2023 - Various Locations Kidman Gagen Law 35,489.92 Legal Services - Nov 2023 CalCard US Bank 29,643.39 Credit Card Transactions - Dec 2023 Pacific Hydrotech Corporation 24,080.60 J18-27 Hidden Hills Booster Prof Services American Business Bank 18,659.55 Pacific Hydrotech Retention Escrow Holdings Page 23 of 119 $ 1,808,860.65 Other Routine Invoices $ 353,231.55 Accts Payable Check Total $ 2,162,092.20 Payroll No. 25 Payroll No. 26 $ 374,909.03 390,673.49 Total Disbursements $ 2,927,674.72 A summary of the disbursements is attached. ATTACHMENTS: 1. Cap Sheet for January 11, 2024 2. Check Register for December 21, 2023 3. Check Register for January 4, 2024 4. Credit Card Register for January 4, 2024 5. BOD Credit Card for January 4, 2024 Page 24 of 119 CHECK NUMBERS: 12/21/2023 Computer Checks 83288-83365 1,413,969.70$ 1/4/2024 Computer Checks 83379-83445 248,958.30 1,662,928.00$ WIRES: W121423 Municipal Water District 416,903.66$ W121423A Southern Calif Gas Co.61,620.59 W121423B Switch Ltd 713.00 W122123 American Business Bank 18,659.55 W122123A American Business Bank 1,267.40 499,164.20$ 2,162,092.20$ PAYROLL NO. 25: Direct Deposits 231,098.67$ Payroll Taxes 65,633.58 EFT -- CalPERS 52,687.73 Third Party Checks 83283-83287 25,489.05 374,909.03$ PAYROLL NO. 26: 232,812.12$ 74,201.44 53,008.23 Direct Deposits Payroll Taxes EFT -- CalPERS Third Party Checks 83367-83378 30,651.70 390,673.49$ 765,582.52$ 2,927,674.72$ Summary of Disbursements January 11, 2024 ------------------------------------------------------------------------------------------------------------------ TOTAL OF CHECKS & WIRES TOTAL OF PAYROLL ================================================================ MEETING OF JANUARY 11, 2024 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD ================================================================ DISBURSEMENT TOTAL Page 25 of 119 Check No.Date Vendor Name Amount Description 83288 12/21/2023 JOHN H AZLING 180.53 CUSTOMER REFUND 83289 12/21/2023 US SPRINT 198.60 CUSTOMER REFUND 83290 12/21/2023 SO CAL SANDBAGS, INC. 2,980.86 CUSTOMER REFUND 83291 12/21/2023 ACWA/JPIA 156,282.55 MEDICAL & DENTAL PREMIUM JANUARY 2024 83292 12/21/2023 Amazon Capital Services 301.77 CABLE FOR METER SHOP & PRINTER TONER 83293 12/21/2023 Aqua-Metric Sales Co. 615.56 FREIGHT CHARGE TO SENSUS 83294 12/21/2023 Aramark 578.45 UNIFORM SERVICE 83295 12/21/2023 ArchiveSocial, Inc 318.36 ARCHIVAL PLATFORM FEE 83296 12/21/2023 AT & T - Calnet3 1,469.36 ATT CALNET 83297 12/21/2023 Backflow Apparatus & Valve Co., Inc 408.08 BACKFLOW REPAIR PARTS 83298 12/21/2023 BC Traffic Specialist 1,349.40 TRAFFIC SAFETY SIGNS 83299 12/21/2023 Bee Busters, Inc 500.00 COLONY ABATEMENTS 83300 12/21/2023 Calif Water Environ Assn (CWEA) 1,307.70 MEMBERSHIP RENEWALS - 10 STAFF 83301 12/21/2023 CB Pacific, Inc. 3,294.90 CL2 STORAGE 83302 12/21/2023 City Of Placentia 6,609.81 SEWER COLLECTIONS - NOVEMBER 2023 83303 12/21/2023 Griswold Industries dba Cla-Val Co. 9,367.73 CLA-VAL FOR WELL #18 83304 12/21/2023 Clinical Lab. Of San Bern. 3,910.00 WATER QUALITY LAB WORK 83305 12/21/2023 Coastline Equipment 109.87 KEYS FOR BACKHOE 83306 12/21/2023 Communications Lab 5,000.00 PROFESSIONAL SERVICES NOVEMBER 2023 83307 12/21/2023 Culligan of Santa Ana 2,207.10 EQUIPMENT PE SOFTENER 83308 12/21/2023 Ecolab Inc. 3,900.00 PLANT RESIN TRAIN SERVICE 83310 12/21/2023 Energy Environmental Soln, Inc 2,750.00 ICE TESTING FOR LAKEVIEW 83311 12/21/2023 Enthalpy Analytical, Inc. 10,622.50 WATER QUALITY TESTING 83312 12/21/2023 Factory Motor Parts 155.81 PARTS FOR UNIT #175 83313 12/21/2023 Fullerton Paint & Flooring 107.19 MARKING PAINT 83314 12/21/2023 GEO Construction 4,184.85 VARIOUS WELLS LANDSCAPE SERVICES 83315 12/21/2023 Government Finance Officers 149.00 GAAFR RENEWAL 83316 12/21/2023 Health and Human Resource Center, Inc. 247.86 EAP - DECEMBER 2023 & JANUARY 2024 83317 12/21/2023 Mark D. Hensley 1,155.00 LEGAL PROFESSIONAL SERVICES 83318 12/21/2023 Infosend Inc. 5,271.58 BILLING & POSTAGE CUSTOMER BILL 83319 12/21/2023 Inland Group 276.60 PARTS FOR UNIT #241 83320 12/21/2023 Kidman Gagen Law 35,489.92 LEGAL SERVICES - NOVEMBER 2023 83321 12/21/2023 Kimball Midwest 591.52 TOOLS FOR MECHANIC SHOP 83322 12/21/2023 Liebert Cassidy Whitmore 6,386.00 PROFESSIONAL SERVICES OCTOBER 2023 83323 12/21/2023 Maggie Powell 33.01 MILEAGE REIMBURSEMENT - GOVERNMENT TAX SEMINAR 83324 12/21/2023 MAP Communications 458.04 AFTER HOURS PHONE SERVICE 83325 12/21/2023 Mario S. Banuelos 1,275.00 WELL #22 & WELL #19 WELDING SERVICES 83326 12/21/2023 Mc Fadden-Dale Hardware 127.09 PRODUCTION HARDWARE SUPPLIES & HYDRANT TRUCK TOOLS 83327 12/21/2023 Mid-West Hose & Specialty, Inc 1,044.00 HOSE FOR SEWERS 83328 12/21/2023 Miguel Luis Rico 8,200.00 FENCE FABRICATIONS FOR VARIOUS LOCATIONS 83329 12/21/2023 Michael K. Nunley & Associates 5,623.29 J23-54 PROFESSIONAL SERVICES NOVEMBER 2023 83330 12/21/2023 Murcal, Inc. 220.30 EMISSIONS TESTER REPAIR 83331 12/21/2023 Myers Tire Supply 171.97 TIRE REPAIR PARTS 83332 12/21/2023 NatPay Online Business Solutions 25.33 DOCULIVERY - NOVEMBER 2023 83333 12/21/2023 Nickey Kard Lock Inc 7,496.98 FUEL 11/16/23-11/30/23 83334 12/21/2023 Nickey Petroleum Co Inc 2,312.46 DIESEL EXHAUST FLUID 83335 12/21/2023 Office Solutions 730.89 OFFICE SUPPLIES 83336 12/21/2023 Orange County - Tax Collector 60.94 LMAD ASSESSMENT 2023-2024 83337 12/21/2023 County of Orange 546.56 LANDFILL FEES - SOIL DISPOSAL 83338 12/21/2023 Orkin Pest Control 490.98 PEST CONTROL 83339 12/21/2023 Pacific Hydrotech Corporation 354,531.40 J20-37 TIMBER RIDGE PROFESSIONAL SERVICES 83340 12/21/2023 Pacific Hydrotech Corporation 24,080.60 J18-27 HIDDEN HILLS BOOSTER PROFESSIONAL SERVICES 83341 12/21/2023 Perimeter Protection 4,320.00 SECURITY CAMERA HOSTING & MONITORING 83342 12/21/2023 QUADIENT LEASING USA INC 286.82 LEASE PAYMENT 12/27/23-3/26/24 83343 12/21/2023 Red Wing Shoes 232.73 SAFETY BOOTS FOR STAFF 83344 12/21/2023 RKI Engineering, LLC 8,760.00 SCADA CONTROL SUPPORT 83345 12/21/2023 Schorr Metals, Inc. 141.82 MATERIAL FOR FENCE REPAIRS 83346 12/21/2023 Selman Chevrolet Company 571.99 PARTS FOR UNIT #208 83347 12/21/2023 Kandice Sherwood 9,375.00 PROFESSIONAL SERVICES CONTRACT 83348 12/21/2023 Shred Confidential, Inc. 102.38 MONTHLY SHRED SERVICE 83349 12/21/2023 South Coast AQMD 665.26 EMISSIONS FEES - ELK MOUNTAIN 83350 12/21/2023 Southern California Fleet Services, Inc 516.20 SMOKE TEST FOR VARIOUS UNITS 83351 12/21/2023 Rachel Padilla/Petty Cash 95.38 EMERGENCY SERVICE MEAL & CONFERENCE LUNCH REIMBURSEMENT 83352 12/21/2023 Staples Business Advantage 852.33 PRINTER TONER 83353 12/21/2023 Step Saver Inc 1,647.80 SALT FOR CL2 SYSTEM 83354 12/21/2023 Sunrise Medical Group 60.00 EMPLOYEE PHYSICALS 83355 12/21/2023 CA State Water Resources Control Board (SWRCB)7,322.00 ANNUAL PERMIT FEE 83356 12/21/2023 T. E. Roberts, Inc 675,132.41 J21-46 IMPERIAL HIGHWAY WATERLINE SERVICE 83357 12/21/2023 The Bee Man 195.00 COLONY ABATEMENT 83358 12/21/2023 Total Administrative Service Corp (TASC) 707.27 FSA ADMIN FEES 1/1/24-3/31/24 83359 12/21/2023 Townsend Public Affairs, Inc. 5,000.00 CONSULTING SERVICES - DECEMBER 2023 83360 12/21/2023 TruGrit Traction Inc 2,077.16 SEWER CAMERA TIRES 83361 12/21/2023 Trudi DesRoches 156.47 TRAVEL EXPENSE REIMBURSEMENT - AWWA RATE SETTING SEMINAR 83362 12/21/2023 UNUM Life Insurance Co. of America 5,807.00 LIFE,AD&D,STD&LTD - JANUARY 2024 For Checks Dated: 12/7/2023 thru 12/21/2023 Yorba Linda Water District Check Register Page 26 of 119 83363 12/21/2023 United Water Works, Inc. 6,158.65 OPERATIONS WORK MATERIAL 83364 12/21/2023 West Coast Safety Supply Co 6,249.06 SEWER TOOLS FOR CLEANING 83365 12/21/2023 YO Fire 1,829.67 OPERATIONS WORK MATERIAL W121423 12/14/2023 Municipal Water District 416,903.66 WATER DELIVERIES - OCTOBER 2023 W121423A 12/14/2023 Southern Calif Gas Co. 61,620.59 GAS CHARGES - NOVEMBER 2023 VARIOUS LOCATIONS W121423B 12/14/2023 Switch Ltd 713.00 DATA HOSTING CO-LOCATION W122123 12/21/2023 American Business Bank 18,659.55 PACIFIC HYDROTECH RETENTION ESCROW HOLDINGS W122123A 12/21/2023 American Business Bank 1,267.40 PACIFIC HYDROTECH RETENTION ESCROW HOLDINGS 1,913,133.90 12/07/2023 PAYROLL - EMPLOYEE DIRECT DEPOSIT 231,098.67 12/07/2023 PAYROLL - PAYROLL TAX PAYMENT 65,633.58 12/07/2023 PAYROLL - CALPERS & TASC 52,687.73 83283 12/07/2023 California State Disbursement Unit 751.84 83284 12/07/2023 Colonial Life 87.42 83285 12/07/2023 Lincoln Financial Group 2,275.88 83286 12/07/2023 Nationwide Retirement Solutions 21,520.10 83287 12/07/2023 Franchise Tax Board 853.81 374,909.03 Payroll Checks #25 Page 27 of 119 Check No.Date Vendor Name Amount Description 83379 01/04/2024 WINONA KEESTER 7.36 CUSTOMER REFUND 83380 01/04/2024 KDG INVESTMENTS INC 527.52 CUSTOMER REFUND 83381 01/04/2024 LIMING XIA 43.71 CUSTOMER REFUND 83382 01/04/2024 SEYNIN SORN-DRACH 28.09 CUSTOMER REFUND 83383 01/04/2024 JINJUE LI 6.71 CUSTOMER REFUND 83384 01/04/2024 SO CAL SANDBAGS, INC. 303.30 CUSTOMER REFUND 83385 01/04/2024 MONICA KLEPPINGER 129.81 CUSTOMER REFUND 83386 01/04/2024 AIRGAS INC 894.67 WELDING SUPPLIES 83387 01/04/2024 RS Americas, Inc 216.21 SCADA PARTS 83388 01/04/2024 Alternative Hose Inc. 94.34 PARTS FOR HOSE REPAIRS 83389 01/04/2024 Amazon Capital Services 10,342.07 SECURITY CAMERAS FOR VARIOUS SITES 83390 01/04/2024 Annie Alexander 19.18 INTERNATIONAL CALL FEES - BARBRE, B 83391 01/04/2024 Aramark 585.19 UNIFORM SERVICE 83392 01/04/2024 Arizona Machinery LLC 3,261.67 REPAIR OF UNIT #E-127 83393 01/04/2024 BASE HILL INC. 6,142.58 JANITORIAL SERVICES 83394 01/04/2024 Backflow Apparatus & Valve Co., Inc 489.15 BACKFLOW REPAIR PARTS 83395 01/04/2024 Beto's Auto Body & Paint 5,676.47 REPAIR OF UNIT #222 83396 01/04/2024 Burt Process Equipment, Inc 1,179.02 CL2 SYSTEM PARTS 83397 01/04/2024 CalCard US Bank 29,643.39 CREDIT CARD TRANSACTIONS - DECEMBER 2023 83398 01/04/2024 CIPO CLOUD SOFTWARE INC 700.00 CLOUD MONTHLY SUBSCRIPTION 83399 01/04/2024 City Of Anaheim - Anaheim Public Utilities 36,516.58 ELECTRICAL CHARGES NOVEMBER 2023 - VARIOUS LOCATIONS 83400 01/04/2024 CivicPlus 4,375.82 CIVIC CLERK ANNUAL RENEWAL 2024 83401 01/04/2024 Core & Main LP 1,286.93 OPERATIONS WORK MATERIAL 83402 01/04/2024 ELIZABETH TREVORROW 97.28 CUSTOMER REFUND 83403 01/04/2024 Culligan of Santa Ana 9.00 EQUIPMENT PE SOFTENER 83404 01/04/2024 Foundation Building Materials 1,552.71 CONSTRUCTION MATERIAL 83405 01/04/2024 General Pump Co., Inc. 2,470.00 WELL #20 SERVICE 83406 01/04/2024 GEO Construction 5,468.35 LANDSCAPE SERVICE FOR LITTLE CANYON 83407 01/04/2024 Golden Bell Products 8,528.00 INSECTICIDAL COATING FOR MANHOLES 83408 01/04/2024 Grainger 184.74 GAS CANS FOR OPERATIONS 83409 01/04/2024 Haaker Equipment Co. 2,446.22 PARTS FOR SEWER VEHICLES 83410 01/04/2024 Hach Company 1,659.64 WATER QUALITY TEST MATERIALS 83411 01/04/2024 Hushmand Associates Inc 14,086.00 J20-36, J21-36 & J22-48 PROFESSIONAL SERVICES 83412 01/04/2024 Infosend Inc. 4,380.21 BILLING & POSTAGE CUSTOMER BILL 83413 01/04/2024 Jackson's Auto Supply - Napa 2,093.58 PARTS FOR STATIONARY ENGINES 83414 01/04/2024 Joanna Gonzalez 94.46 MILEAGE REIMBURSEMENT - ACWA FALL CONFERENCE 83415 01/04/2024 Killingsworth Gear 471.00 STATIONARY ENGINE MAINTENANCE 83416 01/04/2024 Konica Minolta Business 706.80 COPIER AGREEMENT 83417 01/04/2024 Laco Steel, Inc 783.88 FENCING MATERIALS FOR VARIOUS LOCATIONS 83420 01/04/2024 Lorbel, Inc 11,365.00 BATTERIES FOR DATA CENTER 83421 01/04/2024 Richard Mark Toy 416.56 TRAVEL REIMBURSEMENT - ACWA FALL CONFERENCE 83422 01/04/2024 Mc Fadden-Dale Hardware 301.16 TOOLS FOR SEWER VEHICLES 83423 01/04/2024 Mid-West Hose & Specialty, Inc 2,187.40 HOSES FOR OPERATIONS 83424 01/04/2024 Minuteman Press 410.93 CUSTOMER SERVICE HANGING DOOR TAGS 83425 01/04/2024 Nickey Kard Lock Inc 8,117.91 FUEL 12/1/23-12/15/23 83426 01/04/2024 Linde Gas & Equipment Inc. 137.86 WELDING SUPPLIES 83427 01/04/2024 Pump Check Inc. 1,230.00 PUMP CHECK FOR WELLS #1 & 22 83428 01/04/2024 Quinn Company 18,052.30 PARTS FOR LAKEVIEW GAS ENGINE 83429 01/04/2024 Resource Computer Solutions 115.00 SECURITY CAMERA CONFIGURATION 83430 01/04/2024 Rosanne Weston 10.00 TRAVEL REIMBURSEMENT - ACWA FALL CONFERENCE 83431 01/04/2024 Safety-Kleen Systems Inc 1,776.19 HAZARDOUS MATERIAL DISPOSAL 83432 01/04/2024 The Sherwin-Williams Co. 1,105.49 PAINT FOR FENCE REPAIRS 83433 01/04/2024 Southern California Fleet Services, Inc 7,521.09 REPAIR FOR UNITS #145 & 215 83434 01/04/2024 Staples Business Advantage 2,720.45 PRINTER TONER 83435 01/04/2024 Sunrise Medical Group 365.00 EMPLOYEE PHYSICALS 83436 01/04/2024 The Bee Man 195.00 COLONY ABATEMENT 83437 01/04/2024 United Industries 508.83 OPERATIONS PPE 83438 01/04/2024 United Water Works, Inc. 10,779.14 OPERATIONS WORK MATERIAL 83439 01/04/2024 Vision Service Plan 2,565.39 VISION SERVICE PLAN - JANUARY 2024 83440 01/04/2024 Vivian Lim 134.31 REIMBURSEMENT - HOLIDAY LUNCHEON SUPPLIES 83441 01/04/2024 Western A/V 360.00 MIRALOMA SITE SERVICE 83442 01/04/2024 WIENHOFF DRUG TESTING 2,345.00 EMPLOYEE PHYSICALS 83443 01/04/2024 YO Fire 16,641.34 OPERATIONS WORK MATERIAL 83444 01/04/2024 Leighton Consulting, Inc. 8,941.31 J20-37 & J21-46 PROFESSIONAL SERVICES 83445 01/04/2024 Liebert Cassidy Whitmore 3,154.00 PROFESSIONAL SERVICES NOVEMBER 2023 248,958.30 For Checks Dated: 12/21/2023 thru 1/4/2024 Yorba Linda Water District Check Register Page 28 of 119 12/21/2023 PAYROLL - EMPLOYEE DIRECT DEPOSIT 232,812.12 12/21/2023 PAYROLL - PAYROLL TAX PAYMENT 74,201.44 12/21/2023 PAYROLL - CALPERS & TASC 53,008.23 83367 12/21/2023 Allstate 723.77 83368 12/21/2023 Allstate 723.77 83369 12/21/2023 Ameritas 1,575.15 83370 12/21/2023 California State Disbursement 751.84 83371 12/21/2023 Colonial Life 87.42 83372 12/21/2023 Lincoln Financial Group 2,275.88 83373 12/21/2023 Midland National 200.00 83374 12/21/2023 Nationwide Retirement Solution 23,782.39 83377 12/21/2023 Reliance 39.01 83378 12/21/2023 Franchise Tax Board 492.47 390,673.49 Payroll Checks #26 Page 29 of 119 Vendor Name Amount Description Trader Joes 26.96 SUPPLIES FOR DISTRICT SPONSORED EVENT Urban Water Institute 1,050.00 ANNUAL MEMBERSHIP RENEWAL U S Postmaster 398.00 ANNUAL POST OFFICE BOX FEE Tiscareno's Catering & Events 200.00 HOLIDAY LUNCHEON CATERING MENDOCINO FARMS 53.01 NEW HIRE LUNCH - 3 ATTEND 99 Cent Store 24.03 SUPPLIES FOR FOOD DRIVE Amazon Capital Services 27.18 EISEL FOR DISTRICT EVENTS Amazon Capital Services 28.26 PROMO ITEMS FOR FOOD DRIVE California Association Public 30.00 CAPIO WEBINAR REGISTRATION - GONZALEZ, J Home Depot 36.70 FACILITIES ELECTRICAL SUPPLIES The Ranch Enchilada 46.85 LUNCH MEETING - TOY & LINDSEY Costco 113.11 DISTRICT SPONSORED EVENT SUPPLIES Smart & Final 42.00 DISTRICT SPONSORED EVENT SUPPLIES Amazon Capital Services 22.82 OFFICE SUPPLIES Amazon Capital Services 16.76 OFFICE SUPPLIES Verizon Wireless 4,412.02 VERIZON 9/21-10/20 Fish House Market & Grill 85.13 EOC TRAINING LUNCH - 3 ATTEND Smart & Final 375.56 BREAKROOM SUPPLIES Home Depot 392.47 SEWER EQUIPMENT REPAIR PARTS AutoZone 10.55 PUMP FOR UNIT #226 Home Depot 96.88 OUTDOOR DECK LIGHTS DJI 399.00 DRONE PROTECTION INSURANCE Amazon Capital Services 10.65 EMPLOYEE SERVICE RECOGNITION Amazon Capital Services 42.67 EMPLOYEE SERVICE RECOGNITION Stater Bros. Markets 66.11 DISTRICT SPONSORED EVENT SUPPLIES Home Depot 165.03 SEWER CAMERA CABLE Davanti Enoteca 80.96 MEAL - AWWA SEMINAR - DECRISCIO & DESROCHES GSE 76 81.53 PROPANE REFILL County of Orange 119.06 J21-36 BNSF INSPECTION FEES Apola Gyro Grill 64.20 LUNCH MEETING - 3 ATTEND Hilton Garden Inn 30.95 MEAL - AWWA SEMINAR - DECRISCIO, J Minuteman Press 75.43 BUSINESS CARDS FOR STAFF Spectrum Enterprise 663.08 INTERNET & DISTRICT TV SERVICES Buffer, Inc 24.00 SOCIAL MEDIA ANALYTICS Hilton Garden Inn 937.02 LODGING - AWWA SEMINAR - DECRISCIO, J Pesto Italian Kitchen 30.49 MEAL - AWWA SEMINAR - DECRISCIO, J Hilton Garden Inn 924.24 LODGING - AWWA SEMINAR - DESROCHES, T ZOOM 55.99 VIRTUAL MEETING SUBSCRIPTION SMARTSHEET 9.00 MONTHLY SOFTWARE SUBSCRIPTION ZOOM 15.99 VIRTUAL MEETING SUBSCRIPTION Amazon Capital Services 56.42 VAULT SUPPLIES ONLINE Information Services, Inc.469.70 ONLINE UTILITY EXCHANGE & COLLECTION Home Depot 72.75 J20-20 HIDDEN HILLS CONCRETE BLOCKS Home Depot 61.02 J20-20 HIDDEN HILLS CONCRETE BLOCKS Republic Services #676 689.33 DISPOSAL SERVICE Blake's Place 43.03 LUNCH MEETING WITH OCFA - 2 ATTEND Blake's Place 30.66 LUNCH MEETING WITH OCFA - 2 ATTEND Seasurf Fish Co 37.84 LUNCH MEETING - TOY & DESROCHES Home Depot 370.20 FACILITIES ELECTRICAL SUPPLIES American Frame 649.70 FRAMES FOR SERVICE RECOGNITIONS Calif Water Environ Assn (CWEA)221.00 CWEA MEMBERSHIP RENEWAL - MCDONALD, J Home Depot 166.41 HANDHELD BLOWER FOR FACILITIES Home Depot 797.10 VACUUM, TOOL KIT & SOCKET SET Home Depot 87.99 J20-20 HIDDEN HILLS CONCRETE BLOCKS Bitwarden Inc.180.00 PASSWORD PROGRAM Lamp Post Pizza 74.22 NEW HIRE LUNCH - 5 ATTEND Calif Water Environ Assn (CWEA)221.00 CWEA MEMBERSHIP RENEWAL - LOPEZ, J Starbucks Store 3.95 MEAL - ACWA FALL CONFERENCE - WESTON, R US DEPT OF TRANSPORTATION 62.50 DOT CLEARING HOUSE ANNUAL QUERY Hyatt Regency Hotels 12.00 PARKING - ACWA FALL CONFERENCE - GONZALEZ, J APPLE 0.99 OFFICE EXPENSE Renaissance Esmerelda Resort & Spa 12.93 MEAL - ACWA FALL CONFERENCE - TOY, M Renaissance Esmerelda Resort & Spa 520.44 LODGING - ACWA FALL CONFERENCE - TOY, M 4-Jan-24 Cal Card Credit Card U S Bank Page 30 of 119 Home Depot 180.84 FENCING MATERIALS FOR VARIOUS LOCATIONS Home Depot 977.66 CUT OFF SAW KIT FOR FACILITIES Hyatt Regency Hotels 11.35 MEAL - ACWA FALL CONFERENCE - WESTON, R Hyatt Regency Hotels 5.61 MEAL - ACWA FALL CONFERENCE - WESTON, R Costco 237.43 BREAKROOM SUPPLIES Costco 576.02 BREAKROOM SUPPLIES & BATTERIES Home Depot 132.83 TOOLS FOR SEWER TRUCKS California Board of Accountancy 280.00 CPA LICENSE RENEWAL - PHUONG, S County of Orange 1,010.40 J21-36 BNSF INSPECTION FEES Indian Wells Resort Hotel 324.37 LODGING - ACWA FALL CONFERENCE - WESTON, R Renaissance Esmerelda Resort & Spa 26.05 MEAL - ACWA FALL CONFERENCE - WESTON, R STATION DONUT 37.00 SAFETY MEETING SUPPLIES Spectrum Enterprise 210.81 INTERNET & DISTRICT TV SERVICES Smart & Final 13.98 BREAKROOM SUPPLIES Indian Wells Resort Hotel 322.37 LODGING - ACWA FALL CONFERENCE - GONZALEZ, J Home Depot 25.80 SOD FOR LANDSCAPE REPAIR Home Depot 611.23 FENCE REPAIR MATERIAL FOR VALLEY VIEW American Society of Civil Engineers (ASCE)316.00 MEMBERSHIP RENEWAL - WESTON, R BACKGROUNDS ONLINE 478.70 NEW HIRE BACKGROUND CHECK Lamp Post Pizza 43.10 OFFICE UPGRADE MEETING - 3 ATTEND Home Depot 16.14 PARTS FOR WELL #18 Adobe 54.99 SOFTWARE LICENSE 1-800-FLOWERS 113.12 OFFICE EXPENSE ARMA International 2,499.00 INFONET CONFERENCE REGISTRATION - ARAMBARRI, T Bangkok Spice Thai 96.24 EXECUTIVE STAFF LUNCH - 6 ATTEND Home Depot 216.39 GRAVEL & TOOLS FOR WELL #22 Home Depot 64.18 MULTIMETER CASE & HANGER Home Depot 38.44 PARTS FOR WELL #19 Home Depot 145.30 PRODUCTION ELECTRICAL TOOLS COUNTY OF ORANGE RECORDER 3.00 DOCUMENT COPY FOR ENGINEERING Home Depot (80.82) CONCRETE PALLET FEE REFUND Spectrum Enterprise 232.18 INTERNET & DISTRICT TV SERVICES Calif Water Environ Assn (CWEA)103.00 CERTIFICATE RENEWAL - COLLECTIONS 2 - CUELLAR, R Calif Water Environ Assn (CWEA)98.00 CERTIFICATE RENEWAL - COLLECTIONS 1 - OZTIZ, M Home Depot 95.81 GRAVEL FOR WELL #22 Home Depot 442.77 BAGS OF CONCRETE Home Depot 91.52 ROUND UP FOR WEEDS ZOOM 15.99 VIRTUAL MEETING SUBSCRIPTION KENNYS DONUTS 57.35 SAFETY MEETING SUPPLIES Ralphs 9.23 SAFETY TRAINING SUPPLIES Spectrum Enterprise 1,988.12 INTERNET & DISTRICT TV SERVICES Walmart 156.05 SUPPLIES FOR DISTRICT SPONSORED EVENT Amazon Capital Services 79.74 WELL 22 DEDICATION SUPPLIES CRUTCHFIELD 381.60 BACK UP CAMERA FOR UNIT #195 Home Depot 452.01 CONCRETE MATERIALS FOR FENCE WORK Trader Joes 111.97 SUPPLIES FOR DISTRICT SPONSORED EVENT Constant Contact 215.65 SOCIAL MEDIA ENGAGEMENT PLATFORM 29,643.39 Page 31 of 119 Row Labels Vendor Name Document Amount Description DesRoches, Trudi Davanti Enoteca 80.96 MEAL - AWWA SEMINAR - DECRISCIO & DESROCHES Hilton Garden Inn 924.24 LODGING - AWWA SEMINAR - DESROCHES, T Seasurf Fish Co 37.84 LUNCH MEETING - TOY & DESROCHES Lindsey, Tom The Ranch Enchilada 46.85 LUNCH MEETING - TOY & LINDSEY Grand Total 1,043.04 4-Jan-24 Cal Card Credit Card Board of Directors Page 32 of 119 ITEM NO. 14.3. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Budget to Actual Reports for Period Ended November 30, 2023 RECOMMENDATION: That the Board of Directors receive and file the Budget to Actual Reports for the Period Ended November 30, 2023. SUMMARY: Presented are the Budget to Actual Reports for the Month Ended November 30, 2023 for the District. For the month ended November 30, 2023, staff is presenting Budget to Actual Reports for the District as a whole, as well as the individual water and sewer funds. Cumulative Volumetric Water Revenue, as generated by customer water usage through the month ending November 30, 2023, reflects an average increase of approximately 11% as compared to the prior year through the same reporting period. Total Variable Costs results, as reported through the month ending November 30, 2023, reflect an approximate 9% increase when compared to prior year results for the same reporting period. Use of groundwater accounts for 83.4% of demand on the water system through this reporting month. STRATEGIC PLAN INITIATIVES: G2 3B – Regularly assess net position and steps to meet strategic goals. ATTACHMENTS: 1. Budget to Actual Reports and Graphs - November 2023 Page 33 of 119 Summary Financial Report Water & Sewer Funds Annual YTD Nov YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over Nov Actual Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Nov 2022) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 19,683,344$ $9,448,005 1,834,866$ 8,656,276$ (791,729)$ 1,421,732$ 7,819,032$ 837,244$ 10.71% Water Revenue (Commercial & Fire Det.) 2,016,621 $967,978 198,986 911,657 (56,321) 160,898 800,076 111,581 13.95% Water Revenue (Landscape/Irrigation) 4,769,326 $2,289,276 465,660 2,290,747 1,471 343,186 2,107,201 183,546 8.71% Water Revenue (Service Charge) 16,076,351 6,698,480 1,343,860 6,603,318 (95,162) 1,228,885 6,035,306 568,012 9.41% Property Taxes - CFC Charges 3,597,389 935,321 684,499 1,121,037 185,716 381,231 388,360 732,677 188.66% Sewer Charge Revenue 3,582,947 1,492,895 300,656 1,474,308 (18,587) 260,939 1,288,961 185,347 14.38% Locke Ranch Assessments 410,497 90,309 91,394 92,242 1,933 38,835 39,686 52,556 132.43% Other Operating Revenue 1,327,217 553,007 103,917 563,257 10,250 150,705 733,120 (169,863) -23.17% Total Operating Revenue:51,463,692 22,475,271 5,023,838 21,712,842 (762,429) 3,986,411 19,211,742 2,501,100 13.02% Revenue (Non-Operating): Interest 948,000 395,000 73,864 782,315 387,315 35,107 220,704 561,611 254.46% Property Tax 2,402,796 528,615 431,827 475,295 (53,320) 258,513 309,947 165,348 53.35% Other Non-Operating Revenue 735,458 306,441 166,805 404,605 98,164 202,157 866,213 (461,608) -53.29% Total Non-Operating Revenue: 4,086,254 1,230,056 672,496 1,662,215 432,159 495,777 1,396,864 265,351 19.00% Total Revenue 55,549,946 23,705,327 5,696,334 23,375,057 (330,270) 4,482,188 20,608,606 2,766,451 13.42% Expenses (Operating): Variable Water Costs (G.W., Import & Powe 19,891,169 9,547,761 1,348,397 8,337,628 (1,210,133) 1,162,130 7,640,619 697,009 9.12% Salary Related Expenses 14,376,672 5,529,489 898,209 4,702,042 (827,447) 895,878 4,591,841 110,201 2.40% Supplies & Services 10,489,766 4,370,736 577,616 2,990,976 (1,379,760) 577,422 3,124,156 (133,180) -4.26% Total Operating Expenses 44,757,607 19,447,986 2,824,222 16,030,646 (3,417,340) 2,635,430 15,356,616 674,030 4.39% Expenses (Non-Operating): Interest on Long Term Debt 2,604,419 1,085,175 182,523 930,477 (154,698) 192,344 886,700 43,777 4.94% Other Expense 18,625 7,760 138 19,515 11,755 2,046 432,964 (413,449) -95.49% Total Non-Operating Expenses: 2,623,044 1,092,935 182,661 949,992 (142,943) 194,390 1,319,664 (369,672) -28.01% Total Expenses 47,380,651 20,540,921 3,006,883 16,980,639 (3,560,283) 2,829,820 16,676,280 304,358 1.83% Net Position Before Capital Contributions 8,169,295 3,164,406 2,689,451 6,394,418 3,230,013 1,652,368 3,932,326 2,462,092 62.61% Capital Contributions (Non-Cash - - - 445,291 445,291 - 672,277 (226,986) -33.76% Transaction GASB 34 Compliant) Net Position Before Depreciation 8,169,295 3,164,406 2,689,451 6,839,709 3,675,304 1,652,368 4,604,603 2,235,106 48.54% Depreciation & Amortization 9,379,000 3,907,917 759,859 3,797,042 (110,875) 764,708 3,695,961 101,081 2.73% Total Net Position (1,209,705)$ (743,510)$ 1,929,592$ 3,042,667$ 3,786,178$ 887,660$ 908,642$ 2,134,025$ 234.86% (With November 30, 2022 for comparison purposes) Yorba Linda Water District For Period Ending November 30, 2023 Page 34 of 119 Annual YTD Nov YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Nov Actual (thru vs vs FY24 FY24 FY23 FY24 YTD Budget FY23 Nov 2022) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 19,683,344$ $9,448,005 1,834,866$ 8,656,276$ (791,729)$ 1,421,732$ 7,819,032$ 837,244$ 11% Water Revenue (Commercial & Fire Det.) 2,016,621 $967,978 198,986$ 911,657 (56,321) 160,898 800,076 111,581 14% Water Revenue (Landscape/Irrigation) 4,769,326 $2,289,276 465,660$ 2,290,747 1,471 343,186 2,107,201 183,546 9% Water Revenue (Service Charge) 16,076,351 6,698,480 1,343,860$ 6,603,318 (95,162) 1,228,885 6,035,306 568,012 9% Water Revenue (CFC) 3,597,389 935,321 684,499 1,121,037 185,716 381,231 388,360 732,677 189% Other Operating Revenue 1,252,987 522,078 92,628$ 502,777 (19,301) 123,651 661,440 (158,663) -24% Total Operating Revenue: 47,396,018 20,861,138 4,620,499 20,085,812 (775,326) 3,659,583 17,811,415 2,274,397 13% Revenue (Non-Operating): Interest 780,000 325,000 58,332 618,888 293,888 26,795 166,370 452,518 272% Property Tax 2,402,796 528,615 431,827 475,295 (53,320) 258,513 309,947 165,348 53% Other Non-Operating Revenue 718,823 299,510 160,194 407,684 108,174 197,917 798,725 (391,041) -49% Total Non-Operating Revenue: 3,901,619 1,153,125 650,353 1,501,867 348,742 483,225 1,275,042 226,825 18% Total Revenue 51,297,637 22,014,263 5,270,852 21,587,679 (426,584) 4,142,808 19,086,457 2,501,222 13% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 19,891,169 9,547,761 1,348,397 8,337,628 (1,210,133) 1,162,130 7,640,618 697,010 9% Salary Related Expenses 12,155,919 4,675,353 756,312 4,018,765 (656,588) 755,438 3,880,253 138,512 4% Supplies & Services: Communications 210,004 87,502 6,450 85,790 (1,712) 8,573 91,875 (6,085) -7% Contractual Services 634,152 264,230 51,941 245,091 (19,139) 57,584 263,969 (18,878) -7% Data Processing 463,532 193,138 27,800 175,151 (17,987) 31,052 144,946 30,205 21% Dues & Memberships 106,833 44,514 3,525 54,410 9,896 1,863 49,548 4,862 10% Fees & Permits 444,853 185,355 22,773 132,949 (52,406) 20,955 115,786 17,163 15% Board Election - - - - - - - - 0% Insurance 412,250 171,771 34,292 156,891 (14,880) 44,602 122,342 34,549 28% Materials 2,383,837 993,265 106,118 433,795 (559,470) 135,468 526,037 (92,242) -18% District Activities, Emp Recognition 58,223 24,260 3,443 11,615 (12,645) 2,419 15,589 (3,974) -25% Maintenance 1,467,855 611,606 65,695 379,465 (232,141) 1,972 329,675 49,790 15% Non-Capital Equipment 253,285 105,535 9,415 31,292 (74,243) 11,414 88,540 (57,248) -65% Office Expense 40,418 16,841 1,990 11,014 (5,827) 3,276 13,310 (2,296) -17% Professional Services 1,417,133 590,472 134,158 439,071 (151,401) 95,932 457,942 (18,871) -4% Training 62,396 25,998 1,383 5,208 (20,790) 1,370 14,162 (8,954) -63% Travel & Conferences 86,462 36,026 3,296 14,003 (22,023) (1,136) 8,364 5,639 0% Uncollectible Accounts 12,750 5,313 2,368 4,257 (1,056) 505 4,368 (111) -3% Utilities 340,000 141,667 4,450 76,261 (65,406) 26,098 153,100 (76,839) -50% Vehicle Equipment 676,400 281,833 29,330 323,067 41,234 45,590 311,914 11,153 4% Supplies & Services Sub-Total 9,070,383 3,779,326 508,427 2,579,330 (1,199,996) 487,537 2,711,467 (132,137) -5% Total Operating Expenses 41,117,471 18,002,441 2,613,136 14,935,723 (3,066,718) 2,405,105 14,232,338 703,385 5% Expenses (Non-Operating): Interest on Long Term Debt 2,604,419 1,085,175 182,523 930,477 (154,698) 192,344 886,700 43,777 5% Other Expense 12,325 5,135 138 13,543 8,408 2,046 391,767 (378,224) -97% Total Non-Operating Expenses: 2,616,744 1,090,310 182,661 944,020 (146,290) 194,390 1,278,467 (334,447) -26% Total Expenses 43,734,215 19,092,751 2,795,797 15,879,743 (3,213,008) 2,599,495 15,510,805 368,938 2% Net Position Before Capital Contributions 7,563,422 2,921,512 2,475,055 5,707,936 2,786,424 1,543,313 3,575,652 2,132,284 60% Capital Contributions (Non-Cash Transaction - - - - 210,235 210,235 - 335,213 (124,978) 33521300% GASB 34 Compliant) Net Position Before Depreciation 7,563,422 2,921,512 2,475,055 5,918,171 2,996,659 1,543,313 3,910,865 2,007,306 51% Depreciation & Amortization 7,690,000 3,204,167 634,199 3,170,771 (33,396) 636,693 3,060,800 109,971 4% Total Net Position (126,578)$ (282,654)$ 1,840,856$ 2,747,400$ 3,030,054$ 906,620$ 850,065$ 1,897,335$ 223% Yorba Linda Water District Water Fund For Period Ending November 30, 2023 (With November 30, 2022 for comparison purposes) Page 35 of 119 1,660,561 1,492,928 1,435,706 1,361,053  1,100,471  1,058,481  772,447  1,367,226  1,231,436  1,286,293  2,065,064 2,084,721  1,469,440 1,556,303 1,448,941 1,392,832  1,103,786  1,636,877  915,454  1,372,040  1,494,768  1,898,999  2,093,627  2,249,247  2,412,958 2,439,092 2,240,006 1,929,318  1,805,038  1,306,610  1,789,071  1,254,568  1,185,077  1,306,798  1,451,208  1,459,682  1,603,666 1,718,486 1,586,479 1,569,860  1,162,129  954,100  1,430,663  920,261  640,495  1,016,568  1,243,548  1,462,172  1,922,596 1,788,601 1,727,224 1,550,811  1,348,397  $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 123456789101112 5‐Year  Variable  Costs Analysis  FY20 Var Costs FY21 Var Costs FY22 Var Costs FY23 Variable Cost FY 24 Var Costs Page 36 of 119 Annual YTD Nov YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Nov Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Nov 2022) PY Actual $ PY Actual % Revenue (Operating): Sewer Charge Revenue 3,582,947$ 1,492,895$ 300,656$ 1,474,308$ (18,587)$ 260,939$ 1,288,961$ 185,347$ 14.38% Locke Ranch Assessments 410,497 90,309 91,394 92,242 1,933 38,835 39,686 52,556 132.43% Other Operating Revenue 74,230 30,929 11,289 60,479 29,550 27,055 71,680 (11,201) -15.63% Total Operating Revenue: 4,067,674 1,614,133 403,339 1,627,029 12,896 326,829 1,400,327 226,702 16.19% Revenue (Non-Operating): Interest 168,000 70,000 15,532 163,429 93,429 8,312 54,335 109,094 200.78% Other Non-Operating Revenue 16,635 6,931 6,611 (3,082) (10,013) 4,240 67,489 (70,571) -104.57% Total Non-Operating Revenue: 184,635 76,931 22,143 160,347 83,416 12,552 121,824 38,523 31.62% Total Revenue 4,252,309 1,691,064 425,482 1,787,376 96,312 339,381 1,522,151 265,225 17.42% Expenses (Operating): Salary Related Expenses 2,220,753 854,136 141,897 683,277 (170,859) 140,441 711,590 (28,313) -3.98% Supplies & Services: Communications 30,236 12,598 1,138 11,199 (1,399) 1,300 8,614 2,585 30.01% Contractual Services 87,379 36,408 6,131 32,061 (4,347) 6,221 36,544 (4,483) -12.27% Data Processing 76,418 31,841 4,906 26,498 (5,343) 6,418 24,906 1,592 6.39% Dues & Memberships 18,792 7,830 622 9,601 1,771 329 8,744 857 9.80% Fees & Permits 54,447 22,686 4,249 17,593 (5,093) 2,899 17,135 458 2.67% Board Election - - - - - - - - 0.00% Insurance 72,750 30,313 6,052 28,597 (1,716) 7,871 21,589 7,008 32.46% Materials 84,955 35,398 8,611 31,443 (3,955) 8,838 36,067 (4,624) -12.82% District Activities, Emp Recognition 10,272 4,280 608 2,050 (2,230) 427 2,751 (701) -25.48% Maintenance 576,545 240,227 2,708 115,025 (125,202) 28,645 109,125 5,900 5.41% Non-Capital Equipment 74,815 31,173 13,823 30,121 (1,052) 8,304 39,531 (9,410) -23.80% Office Expense 7,132 2,972 351 1,943 (1,029) 578 2,349 (406) -17.28% Professional Services 152,637 63,599 14,308 50,477 (13,122) 10,706 52,818 (2,341) -4.43% Training 13,497 5,624 545 7,164 1,540 458 7,404 (240) -3.24% Travel & Conferences 18,258 7,608 1,062 3,608 (4,000) (200) 1,477 2,131 144.28% Uncollectible Accounts 2,250 938 646 1,338 401 136 1,316 22 1.67% Utilities 60,000 25,000 785 13,459 (11,541) 4,606 8,276 5,183 62.63% Vehicle Equipment 79,000 32,917 2,644 29,467 (3,450) 2,350 34,047 (4,580) -13.45% Supplies & Services Sub-Total 1,419,383 591,410 69,189 411,644 (179,766) 89,886 412,693 (1,049) -0.25% Total Operating Expenses 3,640,136 1,445,545 211,086 1,094,921 (350,624) 230,327 1,124,283 (29,362) -2.61% Expenses (Non-Operating): Other Expense 6,300 2,625 - 5,972 3,347 - 41,197 (35,225) -85.50% Total Non-Operating Expenses: 6,300 2,625 - 5,972 3,347 - 41,197 (35,225) (1) Total Expenses 3,646,436 1,448,170 211,086 1,100,893 (347,277) 230,327 1,165,480 (64,587) -5.54% Net Position Before Capital Contributions 605,873 242,894 214,396 686,483 443,589 109,054 356,671 329,812 92.47% Capital Contributions (Non-Cash Transaction - - - - 235,056 235,056 - 337,064 (102,008) 337,064 GASB 34 Compliant) Net Position Before Depreciation 605,873 242,894 214,396 921,539 678,645 109,054 693,735 227,804 32.84% Depreciation & Amortization 1,689,000 703,750 125,660 626,272 (77,478) 128,015 635,160 (8,888) -1.40% Total Net Position (1,083,127)$ (460,856)$ 88,736$ 295,267$ 756,123$ (18,961)$ 58,575$ 236,692$ -404.08% Yorba Linda Water District Sewer Fund For Period Ending November 30, 2023 (With November 30, 2022 for comparison purposes) Page 37 of 119 ITEM NO. 14.4. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Cash and Investment Report for Period Ended November 30, 2023 RECOMMENDATION: That the Board of Directors receive and file the Cash and Investment Report for the Period Ended November 30, 2023. SUMMARY: Government Code Section 530607, et. seq., requires the person delegated to invest funds to make a monthly report of investments to the legislative body. BACKGROUND: The Cash and Investment Portfolio Report presents the market value and percent yield for all District investments by institution. The Cash and Investment Summary Report includes budget and actual interest and average term portfolio information as well as market value broken out by reserve categories. The Fair Value Measurement Report categorizes investments by the fair value hierarchy established by generally accepted accounting principles. The average portfolio yield for the month ended November 30, 2023 is 4.93%. The District's Total Cash and Investment balance as of November 30, 2023 resulted in an overall net increase from that of October 31, 2023 by approximately $875,000. This increase is predominantly due to receipt of an apportionment from the Orange County Tax Collector’s Office in the amount of approximately $1.1 million for the reporting period. STRATEGIC PLAN INITIATIVES: G2 4C - Manage cash flow to maximize investment income. ATTACHMENTS: 1. Investment Reports and Graphs - November 2023 Page 38 of 119 Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 1,383,331$ 1,383,331$ Wells Fargo Bank 1,383,331$ 1,383,331$ 2.16% Total 0.00% Depository Account 550,123$ 550,123 US Bank Depository Account (Lennar - Cielo Vista Dev) 2.39% 550,123$ 550,123$ 0.86% 2.39% Money Market Accounts: 2,495,013$ 2,495,013$ US Bank (2017A & 2022A Revenue Bonds) 2.96% 4,532,897 4,532,897 US Bank (Money Market) 5.06% 8,281,086 8,281,086 CAMP (Liquidity Fund) 5.57% 1,229,519 1,229,519 Public Agency Retirement Svcs. (PARS) 5.99% 16,538,515$ 16,538,515$ 25.83% Total 5.47% California Asset Mgmt. Program Term Investments: 20,000,000$ 20,000,000$ CAMP (Investment Fund) 5.78% 20,000,000$ 20,000,000$ 31.23% 5.78% US Treasury Notes 383,533 385,000 US Treasury Note 12/31/2023 5.39% 373,016 375,000 US Treasury Note 1/31/2024 5.33% 565,412 570,000 US Treasury Note 2/29/2024 5.31% 747,125 755,000 US Treasury Note 3/31/2024 5.32% 781,528 800,000 US Treasury Note 7/31/2024 5.21% 780,000 800,000 US Treasury Note 8/31/2024 5.18% 793,528 800,000 US Treasury Note 9/30/2024 5.10% 793,816 800,000 US Treasury Note 10/31/2024 5.06% 804,403 810,000 US Treasury Note 11/30/2024 5.01% 802,184 810,000 US Treasury Note 12/31/2024 4.97% 805,994 815,000 US Treasury Note 1/31/2025 4.90% 805,796 810,000 US Treasury Note 2/28/2025 4.84% 798,166 810,000 US Treasury Note 3/31/2025 4.78% 762,588 785,000 US Treasury Note 4/30/2025 4.73% 9,997,089$ 10,125,000$ 15.61% Total 5.05% Pooled Investment Accounts: 15,562,617$ 15,562,617$ Local Agency Investment Fund 3.84% 15,562,617$ 15,562,617$ 24.30% 3.84% 64,031,675$ 64,159,586$ 100% Total Investments 4.93% 0 Per Government Code requirements, the Investment Report is in compliance with the Yorba Linda Water District's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. 11/30/23 Yorba Linda Water District Cash & Investment Portfolio Report November 30, 2023 ________________________________ Delia Lugo, Finance Manager Page 39 of 119 Checking Account:1,383,331$ 2.16% Money Market Accounts:16,538,515$ 25.83% US Treasury Notes:9,997,089$ 15.61% CAMP Term Investments:20,000,000$ 31.23% Pooled Investment Accounts:15,562,617$ 24.30% Depository Account 550,123$ 0.86% Total 64,031,675$ 100.00% Checking Account: 2.16% Money Market  Accounts: 25.83% US Treasury Note   15.61%CAMP Term  Investments: 31.23% Pooled Investment  Accounts: 24.30% Depository  Account 0.86% INVESTMENT BY  CATEGORY BALANCES (AS OF 11‐30‐2023) Checking Account: Money Market Accounts: US Treasury Notes: CAMP Term Investments: Pooled Investment Accounts: Depository Account Page 40 of 119 Below is a chart summarizing the yields as well as terms and maturities for the month of November 2023: Average # of Month Portfolio Days to of 2023 Yield Maturity November 4.93% 1 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 11/30/2022 11/30/2023 Monthly - November 35,107$ 73,864$ Year-to-Date 220,704$ 782,315$ Budget 2022/2023 2023/2024 Interest Budget, November YTD 44,552$ 414,500$ Interest Budget, Annual 106,925$ 994,800$ Interest earned on investments is recorded in the fund that owns the investment. The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: The table below displays the District's Cash and Investment balance of $63.1 million which is allocated between the established reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for current Bond transaction and PARS for the pension/OPEB transactions. The estimated number of Days in Cash, based on the preliminary unaudited statements, are 352 for the Un-Restricted Water Reserve and 833 for the Un-Restricted Sewer Reserve balances, as of November 30, 2023. October 2023 % Alloc November 2023 % Alloc Fund Description Balance 10/31/2023 Balance 11/30/2023 Water Operating Reserve 21,035,498$ 46.00% 23,693,350$ 48.98% Water Emergency Reserve 7,635,458 16.70% 7,636,536 15.79% Water Capital Project Reserve 3,929,314 8.59% 3,899,946 8.06% MWD Contingency Reserve - 0.00% - 0.00% Rate Stabilization Reserve 4,432,886 9.69% 4,438,079 9.17% Un-Restricted Water Reserve Balance 37,033,156$ 39,667,912$ Conservation Reserve 73,801$ 0.16% 73,801$ 0.15% Employee Liability Reserve 322,485 0.71% 322,487 0.67% Restricted Reserve Balance 396,286$ 396,288$ Sewer Operating Reserve 3,945,495$ 8.63% 3,952,426$ 8.17% Sewer Emergency Reserve 2,066,610 4.52% 2,075,290 4.29% Sewer Capital Project Reserve 2,284,713 5.00% 2,284,684 4.72% Un-Restricted Sewer Reserve Balance 8,296,818$ 8,312,399$ Total Reserve Balances 45,726,260$ 100.00% 48,376,599$ 100.00% Water Operating 1,811,354 889,315 Sewer Operating 478,954 494,016 2,290,308 1,383,331 Rev. Bond 2017A-Principal & Interest 655 876 Rev. Bond 2022A - Acquisition & COI 13,437,947 12,491,226 Depository Account - Lennar - Cielo Vista Dev 550,120 550,123 Public Agency Retirement Svc. -PARS (Restricted)1,151,304 1,229,519 Total Cash and Investments 63,156,594$ 64,031,675$ Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) YLWD Cash & Investment Summary Report Page 41 of 119 Date Description Amount 07/28/22 Beginning Balance $30,000,000 08/01/22 Requisition #1 Paydown Bank of America Revolving Line of Credit ($5,743,751) Subtotal of Bond Proceeds for YLWD CIP $24,256,249 85% Target Spenddown of Bond Proceeds for CIP by 7/28/2025 $20,617,812 09/28/22 Requistion #2 ‐ Reimburse District for eligible construction costs ($2,725,606) 10/27/22 Requistion #3 ‐ Reimburse District for eligible construction costs ($391,170) 11/29/22 Requistion #4 ‐ Reimburse District for eligible construction costs ($201,714) 01/27/23 Requistion #5 ‐ Reimburse District for eligible construction costs ($167,104) 03/28/23 Requistion #6 ‐ Reimburse District for eligible construction costs ($849,529) 04/26/23 Requistion #7 ‐ Reimburse District for eligible construction costs ($121,844) 05/22/23 Requistion #8 ‐ Reimburse District for eligible construction costs ($1,125,195) 06/26/23 Requistion #9 ‐ Reimburse District for eligible construction costs ($496,613) 07/31/23 Requistion #10 ‐ Reimburse District for eligible construction costs ($1,455,452) 09/07/23 Requistion #11 ‐ Reimburse District for eligible construction costs ($2,346,194) 09/28/23 Requistion #12 ‐ Reimburse District for eligible construction costs ($758,552) 10/26/23 Requistion #13 ‐ Reimburse District for eligible construction costs ($618,807) 11/22/23 Requistion #14 ‐ Reimburse District for eligible construction costs ($1,011,214) Available Balance of Target Spenddown as of November 30, 2023 $8,348,817 Yorba Linda Water District Financing Authority Revenue Bonds, Series 2022A Activity Summary as of November 30, 2023 $8,348,817 40% $12,268,994  60% Revenue Bonds, Series 2022A Use of Funds to Meet 85%  Spenddown Target  by July 28, 2025   Available Balance as of Reporting Date Total Spenddown to Date Page 42 of 119 Transaction  Date Transaction Description  Water Operating  Pension  Water Operating OPEB   Sewer Operating  Pension   Sewer Operating  OPEB  Account Total  Beginning Balance as of 7/1/23 806,297.48 309,143.73 83,510.06 18,632.96                  1,217,584.23                     7/31/2023 Management Fees (383.70) (147.11) (39.74) (8.87)1,217,004.81                     7/31/2023 Investment Gain/(Loss) 16,775.61 6,431.96 1,737.49 387.67                        1,242,337.54                     8/31/2023 Management Fees (386.64) (148.24) (40.04) (8.93)1,241,753.69                     8/31/2023 Investment Gain/(Loss) (13,805.83) (5,293.32) (1,429.90) (319.04)1,220,905.60                     9/30/2023 Management Fees (397.30) (152.33) (41.15) (9.18)1,220,305.64                     9/30/2023 Investment Gain/(Loss) (26,757.70) (10,259.21) (2,771.36) (618.35)1,179,899.02                     10/31/2023 Management Fees (388.11) (148.81) (40.20) (8.97)1,179,312.93                     10/31/2023 Investment Gain/(Loss) (18,548.02) (7,111.52) (1,921.06) (428.63)1,151,303.70                     11/30/2023 Management Fees (382.18) (146.53) (39.58) (8.83)1,150,726.58                     11/30/2023 Investment Gain/(Loss) 52,177.35 20,005.40 5,404.13 1,205.78 1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     1,229,519.24                     Account Balance by Account Type 814,200.96                    312,174.02                       84,328.65                         18,815.61                  1,229,519.24$                   66.22% 25.39% 6.86% 1.53% 100%         Pension OPEB Total Initial Contribution as of 12/28/2017 247,599.00$                   ‐                                      247,599.00                        Additional Contribution 6/26/19 1,105,248.00$              587,339.00                       1,692,587.00                     Total Contributions 1,940,186.00                      Total Distribution to CalPERS (631,392.00)$                ‐                                      (631,392.00)                      Total Distribution to YLWD (337,936.88)$                    (337,936.88)                      Total Gain (or Loss) from Inception 203,676.32$                  95,731.62                          299,407.94                        Total Management Fees from Inception (26,601.71)$                   (14,144.11)                        (40,745.82)                           Balance as of 11/30/2023 898,529.61$                  330,989.63$                     1,229,519.24$                    PARS (Public Agency Retirement Services) Funding Summary for November 30, 2023 Page 43 of 119 ITEM NO. 14.5. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Lori Thompson, Human Resources and Risk Manager SUBJECT: Amendment to Personnel Manual for Unrepresented Employees RECOMMENDATION: That the Board of Directors adopt Resolution No. 2023-XX amending Section 9.02 of the Personnel Manual for Unrepresented Employees for the remainder of Fiscal Years 2024-2025. BACKGROUND: The District previously negotiated the current Memorandum of Understanding with the Yorba Linda Water District Employees' Association (YLWDEA), outlining terms and conditions of employment for the period July 1, 2023 through June 30, 2025. The Personnel Manual for Unrepresented Employees was also updated to reflect the negotiated provisions between the District and the District's represented employees. Since the adoption of the current Personnel Manual for Unrepresented Employees, the District has experienced challenges in recruiting, specifically related to vacation accrual rates, for certain unrepresented classifications. Section 9.02 (Vacation Leave) of the Personnel Manual for Unrepresented Employees outlines vacation accrual rates based on years of employment. The current vacation leave section does not, however, provide for flexibility when hiring positions that require significant previous experience. In order to provide the District with flexibility in recruiting/retaining critical unrepresented positions, it is recommended that Section 9.02 (Vacation Leave) of the Personnel Manual for Unrepresented Employees be revised to add "As an incentive for recruiting and/or retaining critical management and unrepresented positions, the General Manager, at his/her sole discretion, may authorize an employee covered under this Personnel Manual to accrue vacation at any of the rates outlined above, up to 4.0 wks/yr.". PRIOR RELEVANT BOARD ACTION: On August 3, 2023, the Board adopted Resolution No. 2023-25 adopting the Personnel Manual for Unrepresented Employees for Fiscal Years 2024-2025. On September 7, 2023, the Board adopted Resolution 2023-26, amending Section 7.05 (Fatigue Accommodation) of the Personnel Manual for Unrepresented Employees for Fiscal Years 2024-2025. REVIEWED BY GENERAL COUNSEL: Yes STRATEGIC PLAN INITIATIVES: G5 1A - Retain a highly skilled and capable workforce. ATTACHMENTS: Page 44 of 119 1. Section 9.02 - Unrepresented Employees Personnel Manual - REDLINE 2. Resolution No. 2024-XX - Amending Unrepresented Personnel Manual 3. Section 9.02 - Unrepresented Employees Personnel Manual - FINAL Page 45 of 119 Unrepresented Employees Personnel Manual 26 2023-2025 New Year’s Day 1/1/2024 1/1/2025 Presidents’ Day 2/19/2024 2/17/2025 Memorial Day 5/27/2024 5/26/2025 B. For purposes of holiday compensation, compensation shall be equal to the number of hours that the employee normally would have worked other than for the holiday. C. An employee who is regularly scheduled to work more than thirty (30) hours per week shall accrue ten (10) hours of floating holiday on July 1 of each fiscal year unless the employee is on an alternative work schedule. An employee on a 9/80 alternative work schedule shall accrue nine (9) hours of floating holiday and an employee on a 5/40 alternative schedule shall accrue eight (8) hours of floating holiday. New hires starting after July 1st of each fiscal year shall accrue their floating holiday on their date of hire. D. For those employees whose scheduled work week is Monday through Thursday, a District-observed holiday falling on a Friday, Saturday, or Sunday shall convert into a floating holiday to be used within the fiscal year in which it is accrued or the following fiscal year. Any unused floating holiday will be cashed out at the employee’s then hourly rate of pay at the end of the fiscal year following the fiscal year during which the time was accrued. For example, any unused floating holiday time accrued during fiscal year 2022-23 would be paid out at the end of fiscal year 2023-24. E. In order to be eligible for Holiday pay, an employee must be either at work, on paid leave of absence, or on a leave of absence protected by law (e.g., FMLA/CFRA) on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. F. Employees working at least 20 hours but not more than 30 hours may receive holiday pay in proportion to the average of normal hours worked as a part-time employee compared to full time, (i.e., 4 hours per day worked by a regular part-time employee would be paid 4 hours on a holiday). Section 9.02 – Vacation Leave A. An employee who is regularly scheduled to work more than thirty (30) hours per week shall accrue vacation leave time with pay as follows: Duration of Continuous Regular Employment Hours Accrued per Pay Period During 1st through 60th month (0-5 yrs) 3.077 hrs = 2.0 wks/yr During 61st through 120th month (5-10 yrs) 4.615 hrs = 3.0 wks/yr Page 46 of 119 Unrepresented Employees Personnel Manual 27 2023-2025 During 121st through 180th month (10-15 yrs) 5.384 hrs = 3.5 wks/yr During 181st through 240th month (15-20 yrs) 6.153 hrs = 4.0 wks/yr During 241st month and thereafter (20+ yrs) 6.922 hrs = 4.5 wks/yr As an incentive for recruiting and/or retaining critical management and unrepresented positions, the General Manager, at his/her sole discretion, may authorize an employee covered under this Personnel Manual to accrue vacation at any of the rates outlined above, up to 4.0 wks/yr. B. Vacation leave shall continue to accrue in accordance with the above provisions when an employee is either at work, or on a paid leave of absence. C. Vacation leave shall be scheduled with due regard to the interests of the District and must be approved in advance by the employee’s Department Manager or immediate supervisor. D. An employee may not take more vacation leave than the amount the employee has accrued. The minimum amount of vacation leave that may be taken at any given time shall be fifteen (15) minute increments. E. An employee on an original probationary period shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation leave prior to successfully completing of six (6) months of service. F. The total maximum vacation that may be accrued shall be one and one- half (1½) times the amount that may be accrued in one year of service, based on the employee’s rate of accrual. If the employee has accrued the maximum total amount of vacation, no additional vacation shall be accrued, nor shall the cash equivalent of excess vacation accruals be earned. G. At the sole discretion of the General Manager, if an employee is unable to timely schedule and utilize vacation time off due to business necessity, said employee may be authorized to accrue over their total annual maximum and will be given a timeframe to use those excess accruals. H. At the sole discretion of the General Manager, if an employee is unable to timely schedule and utilize vacation time off due to an overriding concern such as a medical leave of absence, said employee may be authorized to accrue up to 80 additional vacation hours over their total annual maximum. Once the employee returns to work, they will no longer accrue leave and will have six (6) months to bring their accrued leave time down below their total annual maximum in order to accrue leave again. Page 47 of 119 Unrepresented Employees Personnel Manual 28 2023-2025 I. Upon separation, an employee shall be cashed out at their current rate of pay for any vacation leave accrued but not taken. J. An employee who has been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation leave. To be eligible for this benefit, an employee must submit their irrevocable election by December 31st of each year to be paid on the second payday in November of the following year to receive cash for up to forty (40) hours of vacation time that would otherwise accrue in the immediate following year. For example, an employee irrevocably elects to sell 40 hours of vacation leave on December 12, 2022. The employee will be paid out on November 22, 2023. K. An employee who works, or is on a paid leave of absence between twenty (20) and thirty (30) hours per week shall accrue vacation leave on a proportionate basis relative to a full time employee. Section 9.03 – Sick Leave A. Sick leave is provided for use if the employee is unable to work because of illness, and as otherwise required by law. B. An employee eligible for paid sick leave shall be granted such leave for the following reasons: 1. Diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee or a member of the employee’s immediate family. 2. For employees who are victims of domestic violence, sexual assault, or stalking: a) to obtain a temporary restraining order or other court assistance to help ensure the health, safety, or welfare of the employee or his or her child; or b) obtain medical attention or psychological counseling, services from a shelter, program or crisis center, or participate in safety planning or other actions to increase safety. 3. For purposes of “paid sick leave,” the definition of “immediate family” is expanded to include a “designated person”, which is a person identified by the employee at the time the employee requests paid sick days. The employee may designate only 1 “designated person” in a 12 month period. C. In order to receive sick pay if the need for leave is foreseeable, e.g., for routine medical or dental appointments, the employee must notify their immediate supervisor twenty-four (24) hours in advance. If the need for sick leave is not foreseeable, the employee shall provide advance notice Page 48 of 119 Resolution No. 2024-XX Amending the Personnel Manual for Unrepresented Employees for Fiscal Years 2024-2025 1 RESOLUTION NO. 2024-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING SECTION 9.02 OF THE PERSONNEL MANUAL FOR UNREPRESENTED EMPLOYEES FOR FISCAL YEARS 2024-2025 WHEREAS,the Board of Directors of the Yorba Linda Water District previously adopted the Personnel Manual (Manual) for Unrepresented Employees for Fiscal Years 2024-2025 (Resolution No. 2023-25); and WHEREAS,the Board of Directors adopts amendments to the Manual and associated Exhibits from time to time; and WHEREAS,it is the desire of the Board of Directors to amend Section 9.02 – Vacation Leave of the Manual to provide the General Manager flexibility in vacation accrual rates for the purpose of recruiting/retaining critical management and unrepresented positions. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: SECTION 1. Effective January 11, 2024, Section 9.02 – Vacation Leave in the Personnel Manual for Unrepresented Employees for Fiscal Years 2024-2025 shall be amended to add the following: As an incentive for recruiting and/or retaining critical management and unrepresented positions, the General Manager, at his/her sole discretion, may authorize an employee covered under this Personnel Manual to accrue vacation at any of the rates outlined above, up to 4.0 wks/yr. Page 49 of 119 Resolution No. 2024-XX Amending the Personnel Manual for Unrepresented Employees for Fiscal Years 2024-2025 2 PASSED AND ADOPTED this 11th day of January 2024 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Trudi DesRoches, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 50 of 119 Unrepresented Employees Personnel Manual 26 2023-2025 New Year’s Day 1/1/2024 1/1/2025 Presidents’ Day 2/19/2024 2/17/2025 Memorial Day 5/27/2024 5/26/2025 B. For purposes of holiday compensation, compensation shall be equal to the number of hours that the employee normally would have worked other than for the holiday. C. An employee who is regularly scheduled to work more than thirty (30) hours per week shall accrue ten (10) hours of floating holiday on July 1 of each fiscal year unless the employee is on an alternative work schedule. An employee on a 9/80 alternative work schedule shall accrue nine (9) hours of floating holiday and an employee on a 5/40 alternative schedule shall accrue eight (8) hours of floating holiday. New hires starting after July 1st of each fiscal year shall accrue their floating holiday on their date of hire. D. For those employees whose scheduled work week is Monday through Thursday, a District-observed holiday falling on a Friday, Saturday, or Sunday shall convert into a floating holiday to be used within the fiscal year in which it is accrued or the following fiscal year. Any unused floating holiday will be cashed out at the employee’s then hourly rate of pay at the end of the fiscal year following the fiscal year during which the time was accrued. For example, any unused floating holiday time accrued during fiscal year 2022-23 would be paid out at the end of fiscal year 2023-24. E. In order to be eligible for Holiday pay, an employee must be either at work, on paid leave of absence, or on a leave of absence protected by law (e.g., FMLA/CFRA) on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. F. Employees working at least 20 hours but not more than 30 hours may receive holiday pay in proportion to the average of normal hours worked as a part-time employee compared to full time, (i.e., 4 hours per day worked by a regular part-time employee would be paid 4 hours on a holiday). Section 9.02 – Vacation Leave A. An employee who is regularly scheduled to work more than thirty (30) hours per week shall accrue vacation leave time with pay as follows: Duration of Continuous Regular Employment Hours Accrued per Pay Period During 1st through 60th month (0-5 yrs) 3.077 hrs = 2.0 wks/yr During 61st through 120th month (5-10 yrs) 4.615 hrs = 3.0 wks/yr Page 51 of 119 Unrepresented Employees Personnel Manual 27 2023-2025 During 121st through 180th month (10-15 yrs) 5.384 hrs = 3.5 wks/yr During 181st through 240th month (15-20 yrs) 6.153 hrs = 4.0 wks/yr During 241st month and thereafter (20+ yrs) 6.922 hrs = 4.5 wks/yr As an incentive for recruiting and/or retaining critical management and unrepresented positions, the General Manager, at his/her sole discretion, may authorize an employee covered under this Personnel Manual to accrue vacation at any of the rates outlined above, up to 4.0 wks/yr. B. Vacation leave shall continue to accrue in accordance with the above provisions when an employee is either at work, or on a paid leave of absence. C. Vacation leave shall be scheduled with due regard to the interests of the District and must be approved in advance by the employee’s Department Manager or immediate supervisor. D. An employee may not take more vacation leave than the amount the employee has accrued. The minimum amount of vacation leave that may be taken at any given time shall be fifteen (15) minute increments. E. An employee on an original probationary period shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation leave prior to successfully completing of six (6) months of service. F. The total maximum vacation that may be accrued shall be one and one- half (1½) times the amount that may be accrued in one year of service, based on the employee’s rate of accrual. If the employee has accrued the maximum total amount of vacation, no additional vacation shall be accrued, nor shall the cash equivalent of excess vacation accruals be earned. G. At the sole discretion of the General Manager, if an employee is unable to timely schedule and utilize vacation time off due to business necessity, said employee may be authorized to accrue over their total annual maximum and will be given a timeframe to use those excess accruals. H. At the sole discretion of the General Manager, if an employee is unable to timely schedule and utilize vacation time off due to an overriding concern such as a medical leave of absence, said employee may be authorized to accrue up to 80 additional vacation hours over their total annual maximum. Once the employee returns to work, they will no longer accrue leave and will have six (6) months to bring their accrued leave time down below their total annual maximum in order to accrue leave again. Page 52 of 119 Unrepresented Employees Personnel Manual 28 2023-2025 I. Upon separation, an employee shall be cashed out at their current rate of pay for any vacation leave accrued but not taken. J. An employee who has been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation leave. To be eligible for this benefit, an employee must submit their irrevocable election by December 31st of each year to be paid on the second payday in November of the following year to receive cash for up to forty (40) hours of vacation time that would otherwise accrue in the immediate following year. For example, an employee irrevocably elects to sell 40 hours of vacation leave on December 12, 2022. The employee will be paid out on November 22, 2023. K. An employee who works, or is on a paid leave of absence between twenty (20) and thirty (30) hours per week shall accrue vacation leave on a proportionate basis relative to a full time employee. Section 9.03 – Sick Leave A. Sick leave is provided for use if the employee is unable to work because of illness, and as otherwise required by law. B. An employee eligible for paid sick leave shall be granted such leave for the following reasons: 1. Diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee or a member of the employee’s immediate family. 2. For employees who are victims of domestic violence, sexual assault, or stalking: a) to obtain a temporary restraining order or other court assistance to help ensure the health, safety, or welfare of the employee or his or her child; or b) obtain medical attention or psychological counseling, services from a shelter, program or crisis center, or participate in safety planning or other actions to increase safety. 3. For purposes of “paid sick leave,” the definition of “immediate family” is expanded to include a “designated person”, which is a person identified by the employee at the time the employee requests paid sick days. The employee may designate only 1 “designated person” in a 12 month period. C. In order to receive sick pay if the need for leave is foreseeable, e.g., for routine medical or dental appointments, the employee must notify their immediate supervisor twenty-four (24) hours in advance. If the need for sick leave is not foreseeable, the employee shall provide advance notice Page 53 of 119 ITEM NO. 14.6. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer SUBJECT: Award of Construction Contract for Camino De Bryant Waterline Replacement Phase 1 RECOMMENDATION: That the Board of Directors award the Construction Contract for the Camino De Bryant Waterline Replacement Phase 1 to T.E. Roberts, Inc. for $1,500,830.10, Job No. J-2023-24 SUMMARY: On November 6, 2023, the District solicited bids for the construction of the Camino De Bryant Waterline Replacement Phase 1. On December 4, 2023, bids were received from four contractors. Staff reviewed the bid documents and determined that the bids from Big Ben Inc. and Valverde Construction were non-responsive. A summary of the bids is shown below. No. Contractor Total Bid Amount 1 T.E. Roberts, Inc. $1,500,830.10 2 GCI Construction, Inc. $1,744,072.00 3 Big Ben, Inc. N/A 4 Valverde Construction, Inc. N/A Staff conducted its due diligence of the T.E. Roberts bid, and recommends awarding the construction contract for the Camino De Bryant Waterline Replacement Phase 1 to T.E. Roberts, Inc. for $1,500,830.10. FISCAL IMPACT: Budgeted: Yes Total Budget: $1,410,000 Job No: J-2023-24 BACKGROUND: As part of the District’s continuing Rehabilitation and replacement (R&R) Program to replace or rehabilitate aging infrastructure, waterline improvements are planned for the Camino De Bryant area, which is located on the east side of the District's service area. The existing waterlines in this area were installed in 1990. Despite having an estimated useful life of 70 years, these Ductile Iron Pipes have been failing prematurely due to severe corrosion. These pipelines are included in the 2018 Asset Management Plan for replacement. For the first phase of this project, approximately 2,315 LF Page 54 of 119 of pipes will be replaced that are located in high-pressure areas and have a history of leaks. The proposed waterline design was completed by District staff. One of the District's on-call geotechnical consultants will collect soil and pipe samples during the construction of this phase of the project to study the root cause of the problem to try to mitigate corrosion issues with other pipelines in this area. PRIOR RELEVANT BOARD ACTION: On November 21, 2023, the Board approved filing the CEQA Notice of Exemption for this project. REVIEWED BY GENERAL COUNSEL: Yes STRATEGIC PLAN INITIATIVES: G1 4B - Address infrastructure needs by updating/implementing the Capital Improvement Plan; G1 6B - Provide a sustainable, adequate water supply by maintaining distribution system and its capability to provide 100% groundwater and/or import water to the entire service area. Page 55 of 119 ITEM NO. 14.7. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer SUBJECT: Award of the Construction Contract for Main Street Sewer Replacement Project RECOMMENDATION: That the Board of Directors award the Construction Contract for the Main Street Sewer Replacement Project to GCI Construction, Inc. for $396,418.00, Job No. J-2020-63S SUMMARY: On November 22, 2023, the District solicited bids for the construction of the Main Street Sewer Replacement Project. On December 20, 2023, bids were received from six contractors. A summary of the bids is shown below. No. Contractor Total Bid Amount 1 GCI Construction, Inc. $396,418.00 2 GRBCON, Inc. $415,156.50 3 Ramona, Inc. $574,310.00 4 Big Ben, Inc. $599,734.30 5 T.E. Roberts, Inc. $704,929.50 6 Tomovich & Associates $793,540.00 Staff conducted its due diligence of the GCI Construction, Inc. bid, and recommends awarding the construction contract for the Main Street Sewer Replacement to GCI Construction, Inc. for $396,418.00. FISCAL IMPACT: Budgeted: Yes Total Budget: $544,939.76 Job No: J-2020-63S BACKGROUND: As part of the District’s ongoing Rehabilitation & Replacement (R&R) program, approximately 460 feet of 6-inch sewer line near Main Street in downtown Yorba Linda has been identified for replacement as it has severe joint offsets, is below the minimum diameter required by the District, and is partly inaccessible for monitoring and maintenance due to structures constructed over the sewer system. The proposed sewer line was designed by District staff. In order to minimize the impact on Page 56 of 119 surrounding businesses, construction will include a combination of open trench and pipe bursting to replace the existing 6-inch sewer line with an 8-inch sewer line. Due to the excellent partnership with the City of Yorba Linda, the City granted perpetual and temporary construction easements to the District at no cost. The District and the City will also continue working together to keep local businesses updated on this project. PRIOR RELEVANT BOARD ACTION: On December 13, 2022, the Board approved filing the CEQA Notice of Exemption for this project. REVIEWED BY GENERAL COUNSEL: Yes STRATEGIC PLAN INITIATIVES: G1 4B - Address infrastructure needs by updating/implementing the Capital Improvement Plan. Page 57 of 119 ITEM NO. 14.8. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer SUBJECT: Final Payment and Notice of Completion for Well 22 Equipping Project RECOMMENDATION: That the Board of Directors approve zero dollars final payment to the contractor and authorize staff to file the Notice of Completion for the Well 22 Equipping Project, Job No. 2009-22 #22. SUMMARY: Construction is complete on the Well 22 Equipping Project (J-2009-22 #22). Submitted for consideration is a recommendation to approve zero dollars final payment and a request for authorization to file the Notice of Completion for the project. FISCAL IMPACT: Budgeted: Yes Funding Source: Bond Proceeds Total Construction Budget: $2,215,100.00 Job Number: J-2009-22 #22 Final Construction Cost: $2,067,337.00 BACKGROUND: In FY17-18, the District completed the drilling part of Well No. 22. The equipping part of this well was placed on hold from late 2018 until late 2021 due to PFAS concerns and the desire to first complete the construction of the PFAS treatment plant. Construction of the Well 22 Equipping project is complete, and the well was placed into service on September 5, 2023. The project included the installation of a 2,500 GPM vertical turbine pump, a 350 hp motor, 1,035 linear feet of 12" Cement Mortar Lined & Coated steel pipe (CML&C) discharge pipeline, and a surge tank. The contractor's last invoice was approved on September 12, 2023, and no further invoices were received since no further work was outstanding. On June 27, 2023, the contractor submitted a change order request (“COR”) for $281,364.48 for alleged differing site conditions. Contrary to the COR, the project bid documents stated that no geotechnical report was prepared for this project so the contractor was responsible for the soil conditions and was to perform pre-bid investigation of the soil conditions. Additionally, the contractor previously worked on Well 21 and encountered the same soil conditions so the contractor should have been aware of the soil conditions before bidding on the project. Lastly, the COR was untimely and failed to follow the contractual procedure for change order requests. In consultation with District Counsel, District staff previously denied the COR and now recommends final payment and resolution of the COR. Since the District paid all contractor invoices for the base Page 58 of 119 bid amount and approved change orders requests, and there are no invoices pending and no basis to approve the COR, District staff recommends zero dollars as the final payment for this project. PRIOR RELEVANT BOARD ACTION: The design contract was awarded to Albert A. Webb Associates by the Board of Directors on January 23, 2018, and the construction contract was awarded to Pascal & Ludwig by the Board of Directors on March 8, 2022. STRATEGIC PLAN INITIATIVES: G1 A1 - Work towards service reliability and efficiency by developing additional well sites and sources; G1 4B - Address infrastructure needs by updating/implementing the Capital Improvement Plan. Page 59 of 119 ITEM NO. 14.9. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer Ethan Nakano, Associate Engineer SUBJECT: Final Payment and Notice of Completion for Mountain View Waterline Replacement Project RECOMMENDATION: That the Board of Directors approve $19,546.25 final payment to the contractor and authorize staff to file the Notice of Completion for the Mountain View Waterline Replacement Project, Job No. 2022-48. SUMMARY: Construction is complete on the Mountain View Waterline Replacement Project (J-2022-48). Submitted for consideration is the recommendation to approve the $19,546.25 final payment and the request for authorization to file the Notice of Completion for the project. FISCAL IMPACT: Budgeted: Yes Funding Source: Bond Proceeds Total Construction Budget: $745,325.00 Job Number: J-2022-48 Final Construction Cost: $696,342.67 BACKGROUND: In June 2023, construction of the Mountain View Waterline Replacement commenced. The project included installation of 1,200 linear feet of 10" PVC waterline, installation of all appurtenant structures, and abandonment of the 10-inch cast iron waterline that was installed in 1942. The project was completed on December 11, 2023. Staff recommends making the final payment less retention to the contractor in the amount of $19,546.25 and authorizing staff to file the Notice of Completion. PRIOR RELEVANT BOARD ACTION: The construction contract was awarded to GCI Construction, Inc. by the Board of Directors on April 6, 2023. STRATEGIC PLAN INITIATIVES: G1 4A - Address infrastructure needs by updating/implementing the Asset Management Plan (AMP); G1 4B - Address infrastructure needs by updating/implementing the Capital Improvement Plan (CIP); G1 6B - Maintain distribution system and its capability to provide 100% groundwater and/or import water to the entire service area. Page 60 of 119 ITEM NO. 15.1. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Andrew Gagen, General Counsel STAFF CONTACTS: Mark Toy, General Manager SUBJECT: Agency Designated Representative's Summary Recommendation Regarding Labor Negotiations with Unrepresented Employee (General Manager), and Proposed Amendment to Employment Agreement for Position of General Manager RECOMMENDATION: That the Board of Directors (1) approve the draft First Amendment to the Employment Agreement for the Position of General Manager as negotiated by the District's Designated Representative; and (2) adopt Resolution No. 2024-XX approving the Classification and Salary for the General Manager effective July 1, 2023 and rescinding Resolution No. 2022-28. BACKGROUND: Pursuant to Paragraph 7 of the Employment Agreement for the Position of General Manager with Richard Mark Toy dated August 24, 2022 (“Agreement”), the Board of Directors may review and evaluate the General Manager’s performance on an annual, quarterly, or other basis, or pursuant to the District's Employee Performance Evaluation and Merit Increase Policy (Policy No. 7010-010). The Board of Directors completed its annual review of the General Manager’s performance in November 2023 and directed the District’s Designated Representative to negotiate terms of the General Manager's compensation. During oral presentation of this agenda item, and in accordance with the Brown Act, the Designated Representative will “report a summary of a recommendation” regarding the negotiated terms for the Board to consider whether to take final action as recommended above. As a result of these negotiations and the Board of Directors performance evaluation of the General Manager, and in the interest of maintaining the employment relationship, the Board of Directors may wish to amend the Agreement as follows: (a) retroactive to July 1, 2023, the General Manager's annual base salary to be increased 5% (as a cost of living adjustment) from $265,000 to $278,250; (b) effective July 1, 2024, the General Manager’s annual base salary will be further increased 4% (as a cost of living adjustment) from $278,250 to $289,380; and (c) effective January 1, 2024 through December 31, 2024, increase the amount of Employee’s severance payment under Section 8.1 of the Agreement from three (3) months’ salary to six (6) months’ salary. As required in Section 3 (“Employee Compensation”) of the Agreement: “Any increase is not effective until the Parties draft and sign an amendment to this Agreement that states the new annual base salary and the effective date of that new salary and such amendment is adopted by the Board at a Page 61 of 119 duly noticed public meeting.” In accordance with California Code of Regulations, Title 2, § 570.5 and the Public Employees' Retirement Law at Government Code § 20636, all Public Agency members’ pay amounts are required to be paid pursuant to a publicly available pay schedule that has been approved and adopted by the employer’s governing body. Accordingly, District staff prepared Exhibit A, General Manager Classification and Salary Schedule, effective July 1, 2023, which provides the amended salary for the General Manager. Attached to this Agenda Report are copies of the draft First Amendment to the Agreement and Resolution No. 2024-XX with Exhibit A. PRIOR RELEVANT BOARD ACTION: On August 23, 2022, the Board of Directors approved both the Agreement for the Position of General Manager with Richard Mark Toy and Resolution No. 2022-28, approving the Classification and Salary for the General Manager effective August 29, 2022. ATTACHMENTS: 1. Draft First Amendment to GM Toy Employment Agreement 2. Resolution No. 2024-XX - GM Classification and Salary Page 62 of 119 First Amendment to YLWD Employment Agreement with GM Toy (January 2024)1 FIRST AMENDMENT TO EMPLOYMENT AGREEMENT FOR POSITION OF GENERAL MANAGER This First Amendment to Employment Agreement for Position of General Manager (“First Amendment”) is made and entered on January 11, 2024, by and between the Yorba Linda Water District (“District”) and Richard Mark Toy (“Employee”). RECITALS A.The District and Employee entered an Employment Agreement for Position of General Manager (“Agreement”) on August 24, 2022, according to which Employee has served, and continues to serve, as General Manager of the District. B.Under Sections 3 (Employee Compensation) and 7 (Performance Evaluation) of the Agreement, Employee is eligible for salary adjustments, and the Board of Directors may review and evaluate Employee's performance on an annual, quarterly, or other basis, or pursuant to the District's performance evaluation policy. C.The Board of Directors completed its annual review of Employee’s performance in November 2023. D.Based on the Board of Directors’ performance review and in the interest of maintaining the employment relationship, the Board of Directors desire to (i) provide Employee a cost of living adjustment, under Section 3.1 of the Agreement, as a salary increase, and (ii) under Section 8.1 of the Agreement, increase the amount of Employee’s severance payment for calendar year 2024. E.In accordance with Section 3 of the Agreement, any salary increase is not effective until the District and Employee draft and sign an amendment to the Agreement that states the new annual base salary and the effective date of that new salary, and such amendment is adopted by the Board in accordance with the Ralph M. Brown Act (California Government Code 54950 et seq.). AGREEMENT NOW THEREFORE, in consideration of the foregoing recitals and mutual covenants contained herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, the District and Employee agree to amend the Agreement as follows: 1.The recitals above are true and correct. 2.Section 3 (Employee Compensation) of the Agreement is amended to provide as follows: Retroactive to July 1, 2023, Employee shall receive a 5% increase of Employee’s annual base salary as a cost-of-living adjustment, which will increase Employee’s salary from $265,000.00 to $278,250.00, payable in twenty-six equal biweekly installments, for performance of Employee’s service as General Manager under the Agreement. Effective July 1, 2024, Employee shall receive a 4% increase of Employee’s annual base salary as a cost-of-living adjustment, which will increase Employee’s salary from $278,250.00 to $289,380.00, Page 63 of 119 First Amendment to YLWD Employment Agreement with GM Toy (January 2024)2 payable in twenty-six equal biweekly installments, for performance of Employee’s service as General Manager under the Agreement 3.Effective January 1, 2024 through December 31, 2024, Section 8.1 of the Agreement is amended as follows (additions in bold/underline, deletions in strike-out): Severance Payment: In the event the Employee is terminated by the Board before the expiration of the Term, as may be amended, and during such time that Employee is willing and able to perform the duties of the General Manager position, the District agrees to make a lump sum severance payment to Employee in an amount equal to six (6) months three (3) months of the Employee’s monthly salary at the time of termination. Unless Employee and the Board of Directors agree otherwise, the amount of Employee’s severance payment will revert to three (3) months salary on January 1, 2025. 4.All other terms and language in the Agreement, which are unaffected by this First Amendment, shall remain unchanged and in full force and effect. 5.This First Amendment may be signed in counterparts. YORBA LINDA WATER DISTRICT Trudi DesRoches, Board President Date EMPLOYEE Richard Mark Toy, General Manager Date APPROVED AS TO FORM: Kidman Gagen Law LLP Andrew B. Gagen, General Counsel Page 64 of 119 Resolution No. 2024-XX Adopting the General Manager Classification and Salary 1 RESOLUTION NO. 2024-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE GENERAL MANAGER CLASSIFICATION AND SALARY EFFECTIVE JULY 1, 2023 AND RESCINDING RESOLUTION NO. 2022-28 WHEREAS,pursuant to California Code of Regulations, Title 2, §570.5, CalPERS requires governing bodies of local agencies contracting with CalPERS to approve and adopt a publicly available pay schedule in accordance with the Ralph M. Brown Act (California Government Code 54950 et seq.); and WHEREAS, the Board of Directors completed its annual review of the General Manager’s performance, and thereafter directed the District’s Designated Representative to negotiate terms of the General Manager’s compensation and the Designated Representative reported “a summary of a recommendation” regarding the negotiated terms for the Board to consider whether to take final action; and WHEREAS,as a result of these negotiations and the Board of Directors performance evaluation of the General Manager, and in the interest of maintaining the employment relationship, the Board of Directors took final action at a Board meeting on January 11, 2024, to, in part, increase the General Manager’s base salary; and WHEREAS,on August 23, 2022, the Board of Directors previously adopted Resolution No. 2022-28 to approve and adopt the General Manager Classification and Salary, effective August 29, 2022; and WHEREAS, the Board of Directors desires to adopt the General Manager Classification and Salary with a 5% cost-of-living adjustment retroactive to July 1, 2023 and a 4% cost-of-living adjustment effective July 1, 2024, as set forth in Exhibit A attached hereto. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: SECTION 1.The General Manager Classification and Salary, as set forth in Exhibit A attached hereto, is approved and adopted, effective July 1, 2023. Page 65 of 119 Resolution No. 2024-XX Adopting the General Manager Classification and Salary 2 SECTION 2.That Resolution No. 2022-28 is hereby rescinded. PASSED AND ADOPTED this 11th day of January 2024, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Trudi DesRoches, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed and approved as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 66 of 119 Resolution No. 2024-XX Adopting the General Manager Classification and Salary 3 EXHIBIT A Yorba Linda Water District General Manager Classification and Salary Retroactive to July 1, 2023 CLASSIFICATION TITLE SALARY FLSA General Manager Hourly $ 133.77 Exempt Monthly $ 23,187.50 Yearly $ 278,250.00 Effective July 1, 2024 CLASSIFICATION TITLE SALARY FLSA General Manager Hourly $ 139.13 Exempt Monthly $ 24,115.00 Yearly $ 289,380.00 Page 67 of 119 ITEM NO. 15.2. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer SUBJECT: Request from City of Yorba Linda for District Participation as Stakeholder in Green Crest Drive Erosion Mitigation RECOMMENDATION: That the Board of Directors consider the City's request and provide direction to staff. BACKGROUND: The City of Yorba Linda is requesting that the District participate as a stakeholder to address the Green Crest Drive erosion. A copy of the City's presentation is attached. The roadway (Green Crest Drive) adjacent to the District's Santiago Reservoir and pump station has eroded and slope failure has occurred. The City has taken temporary steps to prevent further erosion of the roadway and slope; however, a more permanent solution is required. Further erosion may significantly impact the District's two pipelines (14-inch diameter Santiago Reservoir Inlet/Outlet transmission line and 12- inch diameter overflow line from Santiago Reservoir) located within the eroded roadway. The City will also request that the Metropolitan Water District of Southern California participate as a stakeholder, since they have facilities in the vicinity. The City proposes that the three stakeholders (City, District, and Metropolitan) share the costs for a geotechnical and civil engineering firm to prepare an initial study to determine the scope of work and estimated cost to address the erosion issues. See attached letter with consultant proposals from Yorba Linda City Manager Mark Pulone. The cost of the initial study is $70,000, so the shared cost per stakeholder is $23,333. The City is in the process of pursuing funds from the state and other outside agencies for permanent repair, and potentially for the cost of the initial study. FISCAL IMPACT: Budgeted: No Initial Study (Revised) Cost: $70,000 - Split Between 3 Agencies = $23,333 Cost for Permanent Improvements: To Be Determined REVIEWED BY GENERAL COUNSEL: Yes STRATEGIC PLAN INITIATIVES: G1 6B - Maintain distribution system and its capability to provide 100% groundwater and/or import water to the entire service area. ATTACHMENTS: 1. Slide Deck - Stakeholder Request for Green Crest Drive Erosion Mitigation 2. 2023-11-27 - Correspondence - Green Crest Drive Access Road Stakeholder Request Page 68 of 119 Green Crest Drive Erosion Stakeholder Request YLWD Board of Directors, Regular Meeting Presented by: Rick Yee, Deputy Director Public Works City of Yorba Linda January 11, 2024    Page 69 of 119 Vicinity Map 1990’s Landslide Area To Green Crest Drive YLWD*/MWD Facilities To Stonehaven Drive *YLWD Santiago Reservoir and Booster Pump Station Page 70 of 119 Erosion Area YLWD/MWD Facilities (located at the extension to Green Crest Drive) Page 71 of 119 Erosion Area (Immediately south of YLWD/MWD Facilities located on Green Crest Drive extension) Page 72 of 119 Task Source Estimate Geotechnical Investigation and Report of Recommendations Leighton Proposal $52,900 Construction Cost Estimates NCM Proposal $7,600 Design & Construction Management TBD TBD Construction Leighton rough estimate $350K to $600K $60,500* Estimated Costs *Note: Addition of 15% contingency would bring this to approx. $70,000 Page 73 of 119 Next Steps: 1990’s Landslide Area- Request the major stakeholders (MWD, YLWD, City of Yorba Linda) to participate in cost sharing of initial geotechnical effort (Approximately $70,000 split among 3 agencies = $23,333 per agency) - Continue to pursue funds from the State and other outside agencies for permanent repair - Seek reimbursement for cost of study via request to State and other outside agency funding - Continue partnership among agencies Page 74 of 119 Page 75 of 119 Page 76 of 119 Page 77 of 119 Page 78 of 119 Page 79 of 119 Page 80 of 119 Page 81 of 119 Page 82 of 119 Page 83 of 119 Page 84 of 119 Page 85 of 119 Page 86 of 119 Page 87 of 119 Page 88 of 119 ITEM NO. 16.1. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Board of Directors' Committee, Agency, and Intergovernmental Meeting Assignments RECOMMENDATION: That the Board of Directors consider the currently established committees and determine their continuing relevance, review the available assignments, and provide their preferences to the Board President by Thursday, January 25, 2024 in preparation for the regular Board meeting on Tuesday, February 8, 2024. FISCAL IMPACT: Total Budget: $90,000 for FY24 BACKGROUND: The budgeted amount listed above includes Directors' compensation for Board, Committee, and intergovernmental meeting attendance at a maximum of $150 per day up to 10 days per calendar month as allowed by statute and established by Ordinance No. 03-01. The attached list has been provided to facilitate the process of identifying Directors' assignment preferences. Two Board members will also need to be assigned to serve as Active and Alternate Directors for the Orange County Sanitation District (OC San). The Active Director may also be assigned to one or more OC San committees. OC San Board members are compensated by OC San at a rate of $300.00 per day for meeting attendance (up to six meetings a month with the average being two) and receive no health insurance benefits from OC San. OC San's Chair may be compensated for up to ten meetings per month. STRATEGIC PLAN INITIATIVES: G1 5B - Actively participate with existing water/sewer organizations on regulatory and emerging issues.; G1 5C - Regularly meet with regional agencies on water supply issues (conservation, mandates, forecast). ATTACHMENTS: 1. Previous Director Assignments Page 89 of 119 YORBA LINDA WATER DISTRICT Board of Directors' Committee, Agency and Intergovernmental Meeting Assignments JOINT / INTERAGENCY COMMITTEES 2023 2024 YLWD / MWDOC / OCWD Miller Meets as needed.DesRoches YLWD / City of Yorba Linda Lindsey Meets as needed, generally on quarterly basis.DesRoches YLWD / City of Placentia Lindsey Meets as needed.DesRoches YLWD / City of Brea Barbre Meets as needed.Lindsey YLWD / PYLUSD Barbre Meets as needed.Lindsey OTHER (NON-COMMITTEE)2023 2024 YLWD Financial Review Group Lindsey Meets as needed, for educational purposes only.DesRoches YLWD Capital Improvement Plan Review Group Miller Meets as needed in preparation for future Board workshop.Barbre INTERGOVERNMENTAL MEETINGS 2023 2024 MWDSC Board of Directors Meets 2nd Tuesday of the month at 12:00 p.m.All Directors mwdh2o.com MWDSC Committees Meets 2nd Monday and 4th Tuesday of the month, times vary.All Directors mwdh2o.com MWDOC Board of Directors Miller Meets 1st and 3rd Wednesday of the month at 8:30 a.m.All Directors mwdoc.com MWDOC/OCWD Joint Planning Miller / DesRoches Meets 4th Wednesday of Jan, Apr, Jul and Oct at 8:30 a.m.All Directors mwdoc.com OCWD Board of Directors DesRoches Meets 1st and 3rd Wednesday of the Month at 5:30 p.m.All Directors ocwd.com 1 of 2 Page 90 of 119 YORBA LINDA WATER DISTRICT Board of Directors' Committee, Agency and Intergovernmental Meeting Assignments INTERGOVERNMENTAL MEETINGS CONTINUED 2023 2024 OC Sanitation Board of Directors *Hawkins, Primary Meets 4th Wednesday of the month at 6:00 p.m.Lindsey, Alternate ocsan.gov All Directors YL City Council Directors Rotate Meets 1st and 3rd Tuesday of the month at 6:30 p.m. yorbalindaca.gov YL Planning Commission Hawkins Meets 2nd and 4th Wednesday of the month at 6:30 p.m.All Directors yorbalindaca.gov/206/Planning-Commission Placentia City Council Directors Rotate Meets 1st and 3rd Tuesday of the month at 7:00 p.m.All Directors placentia.org Brea City Council Directors Rotate Meets 1st and 3rd Tuesday of the month at 7:00 p.m.All Directors ci.brea.ca.us PYLUSD Board of Directors Barbre Varies, usually 1-2 times on Tuesday of the month at 6:00 p.m.All Directors pylusd.org ISDOC All Directors Meets months with 5th Thursday at 11:30 a.m. isdoc.specialdistrict.org WACO All Directors Meets 1st Friday of the month at 7:30 a.m. mwdoc.com/waco OC LAFCO All Directors Meets 2nd Wednesday of the month at 8:15 a.m. oclafco.org ACCOC Board and Committees Barbre / Lindsey Varies All Directors accoc.org OCBC Board and Committees Barbre / Lindsey Varies All Directors ocbc.org CalMutuals Board of Directors Barbre Meets 3rd Tuesday of the month at 2:00 p.m.All Directors calmutuals.org SAWPA Commission Miller Meets 1st and 3rd Tuesday of the month at 9:30 a.m.All Directors sawpa.org OCWA Webinars Meets 3rd Wednesday of the month at 12:30 p.m.All Directors ocwater.org ACWA-JPIA Board of Directors ˟Miller, Primary Meets semi-annually in May and November.DesRoches, Alternate acwajpia.com All Directors * Submission of Form 700 for OC San required. Additional committee participation may be necessary and is determined by OC San Board. ˟ Submission of Form 700 for ACWA/JPIA required. 2 of 2 Page 91 of 119 ITEM NO. 16.2. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Board of Directors' Compensation RECOMMENDATION: That the Board of Directors review the Directors' current compensation rate and discuss if it should remain the same for the next fiscal year. FISCAL IMPACT: Budget: $90,000 for FY24 BACKGROUND: In accordance with California Water Code Sections 20201-20202, the amount of compensation for members of the Board of Directors is currently set at $150 per day for each day's attendance at meetings of the Board and other meetings attended at the request of the Board, not to exceed 10 days per calendar month. Section 20202 also allows for an increase in the amount of compensation up to 5% for each calendar year following the operative date of the last adjustment. As the last adjustment was effective March 24, 2003 per Ordinance No. 03-01, the Board of Directors would be eligible for an increase in their current compensation rate up to $397.99 per day as of March 24, 2023. Attached are the results of a compensation survey for comparison to other local water agencies. Should the Board recommend an increase in the amount of compensation, an ordinance would need to be adopted pursuant to the procedures specified in Water Code Sections 20203-20204 and Government Code Section 6066: ▪ A public hearing would need to be held prior to adoption of the ordinance. ▪ Notice of the hearing would need to be published in a newspaper of general circulation once a week for two successive weeks prior to the public hearing. ▪ The ordinance would become effective 60 days from the date of its final passage. No action is necessary if the Board desires the compensation rate to remain the same. ATTACHMENTS: 1. BOD Compensation Survey Page 92 of 119 ORANGE COUNTY BOARD OF DIRECTORS PER DIEM SURVEY As of November 13, 2023 Agency Per Diem Meeting Effective Date Maximum Meetings Per Month East Orange County Water District*$175.00 December 2021 10 El Toro Water District $219.00 March 2018 10 Irvine Ranch Water District $331.00 January 2024 10 Mesa Water District $352.00 July 2023 10 Moulton Niguel Water District $280.00 April 2023 10 Municipal Water of Orange County $327.43 January 2020 10 Orange County Water District $330.75 October 2023 10 Santa Margarita Water District $324.00 August 2023 10 South Coast Water District $255.00 August 2019 10 Yorba Linda Water District $150.00 January 2003 10 *Not all Directors accept payment. Page 93 of 119 ITEM NO. 16.3. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Mark Toy, General Manager SUBJECT: Strategic Plan Update A strategic plan workshop is scheduled for Thursday, February 8, 2024 in order to revalidate and/or update the current YLWD Strategic Plan adopted in May 2018. A new YLWD Strategic Plan would go into effect upon approval by the Board. Before promulgating new District goals and priorities, the Board may desire to revalidate and/or update the District's mission, vision, and core values as well as the listed goals, initiatives, and strategies. The District will use a "Facilitator" to support the execution of the workshop. ATTACHMENTS: 1. Strategic Plan 2. Strategic Plan Workshop Teams Page 94 of 119 Page 95 of 119 AMENDMENTS DATE REVISION(S) TITLE/SIGNATURE Page 96 of 119 Page 97 of 119 Page 98 of 119 Strategic Plan Effective FY19 Table of Contents TABLE OF CONTENT ...................................................................................................................................... 5 Introduction .................................................................................................................................................. 1 Strategic Plan Framework ............................................................................................................................ 2 GOAL 1: Safe & Reliable Water and Sewer Service .................................................................................... 3 Initiative 1: Work towards service reliability and efficiency ..................................................................... 3 Initiative 2: Explore service boundary opportunities ................................................................................ 3 Initiative 3: Maintain and update District security and aesthetics, as needed, for: ................................. 3 Initiative 4: Address infrastructure needs by updating/implementing: ................................................... 4 Initiative 5: Monitor emerging water quality and sewer issues and regulations ..................................... 4 Initiative 6: Provide a sustainable, adequate water supply ...................................................................... 4 GOAL 2: Fiscal Responsibility ....................................................................................................................... 5 Initiative 1: Maintain fiduciary responsibility ........................................................................................... 5 Initiative 2: Financial Transparency .......................................................................................................... 6 Initiative 3: Equitable Rates ...................................................................................................................... 6 Initiative 4: List sources of funding ........................................................................................................... 6 GOAL 3: Operational Effectiveness .............................................................................................................. 7 Initiative 1: Efficiency ................................................................................................................................ 7 Initiative 2: Sustainability .......................................................................................................................... 7 Initiative 3: Emergency Preparedness ...................................................................................................... 7 GOAL 4: Community Partnership ................................................................................................................. 8 Initiative 1: Brand Recognition ................................................................................................................. 8 Initiative 2: Public Awareness ................................................................................................................... 8 GOAL 5: Workforce Engagement ................................................................................................................. 9 Initiative 1: Employee Development......................................................................................................... 9 Initiative 2: Employee Relations ............................................................................................................... 9 TABLE OF CONTENT Page 99 of 119 Strategic Plan Effective FY19 Table of Contents Page | 1 Introduction The Yorba Linda Water District (District) is an independent special district serving over 25,000 customer connections within the city of Yorba Linda and portions of Placentia, Brea, Anaheim and unincorporated Orange County. In addition to supplying water to a predominantly residential community, the District is also responsible for maintaining wastewater collection systems in its service area. Like many other water agencies in California, the District is facing a rapidly changing environment with unprecedented challenges on many fronts. These challenges include uncertain State mandates/regulations that have resulted in unpredictable District revenues; water supply and water quality issues; environmental pressures in the Sacramento-San Joaquin Delta and Colorado River that threaten our imported water supplies; regulatory mandates that impose stringent permanent conservation levels; urgently needed infrastructure maintenance and upgrades; rising operational costs; increasing media scrutiny; and the impending retirement of many highly knowledgeable staff. To address these challenges, the District developed a strategic plan that can be adopted by the Board of Directors and utilized as a budgeting resource, and for forward planning purposes. The plan will be integrated into the budgetary process to ensure that resources are properly allocated to achieve the goals, initiatives, and strategies set forth in this plan. The goals, initiatives, and strategies within this plan, established through the process initiated by the Board of Directors at their Strategic Planning Workshops, align with the District’s core values, and further its mission and vision. Stakeholders who participated in this process included all five Board Members, the Executive Management team and staff members with varied levels of experience and expertise from across all District departments. Page 100 of 119 Strategic Plan Effective FY19 Table of Contents Page | 2 Safe & Reliable Service Fiscal Responsibility Operational Effectiveness Community Partnership Workforce Engagement Strategic Plan Framework The Strategic Plan identifies five main goals for the District to address. Each goal has its own set of initiatives and strategies that would lead to successful accomplishment. The Strategic Plan will be assessed annually in May and updated accordingly. The following five goals were identified as the District’s top priorities: Page 101 of 119 Strategic Plan Effective FY19 Table of Contents Page | 3 GOAL 1: Safe & Reliable Water and Sewer Service The ultimate mission is to provide safe and reliable vital services to the public. Our goal is to maintain all water and wastewater assets for reliable delivery of District services. Effective management of assets involves monitoring condition of assets and associated risk, planning for future financial needs, and anticipating uncertainties or changing levels of service. Initiative 1: Work towards service reliability and efficiency A. Evaluate all water sources • Develop additional well sites and sources • Research desalination and alternative methodologies • Review raw water usage with Municipal Water District, Orange County (MWDOC) Initiative 2: Explore service boundary opportunities A. Evaluate feasibility of providing additional water services within the region B. Evaluate feasibility of providing additional wastewater services within the region C. Evaluate feasibility of providing other professional services within the region • Installation of cellular towers on District properties Initiative 3: Maintain and update District security and aesthetics, as needed, for: A. Physical and digital securities B. Fire protection C. Landscape maintenance D. Community outreach and involvement Page 102 of 119 Strategic Plan Effective FY19 Table of Contents Page | 4 Initiative 4: Address infrastructure needs by updating/implementing: A. Asset Management Plan (AMP) B. Capital Improvement Plan (CIP) C. Computerized Maintenance Management System (CMMS) D. Best Management Practices (BMPs) to include evaluation of Remaining Useful Life (RUL) Initiative 5: Monitor emerging water quality and sewer issues and regulations A. Meet with lobbyists, representatives, and regulators at all levels (local/State/Federal) B. Actively participate with existing water/sewer organizations (Association of California Water Agencies, American Water Works Association, California Association of Sanitation Agencies, etc.) on regulatory and emerging issues C. Regularly meet with Regional Agencies (Orange County Water District, MWDOC) on water supply issues (conservation, mandates, forecast) D. Engage public to address issues with their representatives and maintain community partnerships with cities and organizations E. Take on leadership role with industry committees Initiative 6: Provide a sustainable, adequate water supply A. Develop a conceptual treatment facility plan for Perfluoroalkyl Substances (PFOS), Perfluorooctanoic Acid (PFOA) and emerging contaminants, if necessary B. Maintain distribution system and its capability to provide 100% groundwater and/or import water to the entire service area C. Develop water shortage contingency plan Page 103 of 119 Strategic Plan Effective FY19 Table of Contents Page | 5 GOAL 2: Fiscal Responsibility The District strives to maintain financial oversight of all District funds by ensuring conformance with a clear, well-documented budget process and annual financial audit. The District has proven to be a good financial steward and is highly ranked by bond rating agencies. Furthermore, the District holds paramount its duty to demonstrate effective and responsible use of public funds while responding to ever-increasing financial challenges. The District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft, misuse, and to compile sufficient, reliable information for the preparation of the District’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Initiative 1: Maintain fiduciary responsibility A. Comply with Governmental Accounting Standards Board (GASB) regulations B. Maintain Government Finance Officers Association (GFOA) Recognition for: • Comprehensive Annual Financial Report (CAFR) • Annual Operating Budget C. Secure a debt covenant ratio greater than 1.25, with preferred rate near/at 2.25 D. Retain cash on hand of 365+ days at fiscal year-end E. Maintain Fitch and Standard & Poor’s bond rating of AA or higher Page 104 of 119 Strategic Plan Effective FY19 Table of Contents Page | 6 F. Develop a comprehensive long-term (multi-year) financial plan G. Manage reserves by • Reviewing Reserve Policy and funding levels annually • Analyzing AMP to determine funding for future asset replacement needs • Ensuring reserves are responsibly funded Initiative 2: Financial Transparency A. Provide monthly ProForma documents on District website B. Post District reports and financial documents on website with descriptions/purpose C. Maintain California Special District Association’s (CSDA) Certificate of Transparency D. Pursue new opportunities for greater public access to fiscal information Initiative 3: Equitable Rates A. Manage expenses to achieve the strategic goals of the District B. Regularly assess net position and steps to meet strategic goals C. Evaluate rate structures that promote conservation and efficiency D. Review and adopt an appropriate fee schedule on an annual basis E. Update rate models as part of budget process Initiative 4: List sources of funding A. Identify and develop additional revenue options B. Research and obtain grant/low interest loans or Energy Services Company (ESCO) funding for capital projects C. Manage cash flow to maximize investment income D. Develop an evaluation of debt options; ratio of Pay-Go and debt financing Page 105 of 119 Strategic Plan Effective FY19 Table of Contents Page | 7 GOAL 3: Operational Effectiveness The District has provided reliable and trusted service for more than one hundred years. It recognizes the importance of continual improvements to increase operational effectiveness. Initiative 1: Efficiency A. Evaluate AMI and implementation options to improve the District’s operations and allow rate payers to make efficient decisions of their water use B. Optimize use of existing technologies (e.g. Computerized Maintenance Management System) C. Explore non-traditional approaches to improve operational efficiencies Initiative 2: Sustainability A. Regularly update and consistently implement Asset Management Plan B. Address the District’s future infrastructure needs C. Evaluate and maintain sustainable operations • Energy & Water Use Efficiency • Staffing Initiative 3: Emergency Preparedness A. Perform annual fire suppression/fire hydrant checks B. Activate semi-annual Emergency Operations Center exercises in preparation for earthquakes, fire, etc. C. Strengthen existing emergency operations partnerships (e.g. Energy Companies, Fire Departments, Police Departments, CAL Warning System) D. Establish an Emergency Preparedness team with District staff Page 106 of 119 Strategic Plan Effective FY19 Table of Contents Page | 8 GOAL 4: Community Partnership As a public agency, the District is expected to demonstrate the prudent use of public funds. The District’s services should provide tangible benefits that are of value to the community. Strengthening existing relationships with key stakeholders, including customers and agency partners, while demonstrating our dedication to transparency in the most professional manner, is paramount. Initiative 1: Brand Recognition A. Provide timely communication, messaging, and strategies B. Establish annual tour of District facilities for the community to coincide with Water Awareness Month C. Offer sponsorships for community events, water donation, giveaways, etc. Initiative 2: Public Awareness A. Frequently update District website B. Publish annual report and infographics; include water usage, cost, reconciliation, investments, projects, etc. C. Design and include informative bill inserts D. Communicate emerging water quality and sewer issues/regulations Page 107 of 119 Strategic Plan Effective FY19 Table of Contents Page | 9 GOAL 5: Workforce Engagement The District is known for its highly skilled staff and quality work. In order to retain a highly productive and proficient workforce, maintaining and building on employee engagement in the District will be critical to future success. Greater calls for efficiency and responsiveness will require staff to be flexible and prepared to demonstrate effectiveness and accountability. Initiative 1: Employee Development A. Retain a highly skilled and capable workforce B. Provide pathways to training and career progression C. Develop management skills D. Establish and maintain a comprehensive succession plan (internal promotions) • Review and revise job specifications, as needed Initiative 2: Employee Relations A. Correlate job satisfaction with annual staff satisfaction survey B. Provide mentorship program/internship programs C. Honor staff during Water Professionals Appreciation Week (1st Sunday of October to Sunday of the following weekend) D. Maintain a strong District culture and ethics as described in the core values of the Strategic Plan. Page 108 of 119 Strategic Plan Workshop Teams Facilitator: TBD – Currently sourcing. Strategic Plan Coordinator: Paige Appel (Budget Analyst) Goal 1: Safe & Reliable Water Sewer Service Team 1: Director ________ Executive Staff Lead: Rosanne Weston (Engineering Manager) Staff: John Brundahl (Production Superintendent) Goal 2: Fiscal Responsibility Team 2: Director ________ Executive Staff Lead: Delia Lugo (Finance Manager) Staff: Annie Alexander (Sr. Executive Assistant/ Board Secretary) Goal 3: Operational Effectiveness Team 3: Director ________ Executive Staff Lead: John DeCriscio (Operations Manager) Staff: Reza Afshar (Principal Engineer) Goal 4: Community Partnership Team 4: Director ________ Executive Staff Lead: Doug Davert (AGM) Staff: Joanna Gonzalez (PAO) Goal 5: Workforce Engagement Team 5: Director ________ Executive Staff Lead: Lori Thompson (HR & Risk Manager) Executive Staff: Mark Toy (General Manager) Page 109 of 119 ITEM NO. 17.1. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Director's Reports The Directors will report on their attendance at the following meetings and events: Event Date Time Attendance By MWDSC Board Tue, Dec 12 12:00 PM PYLUSD Board Tue, Dec 12 6:00 PM Barbre OC LAFCO Commission Wed, Dec 13 8:15 AM YL Planning Commission Wed, Dec 13 6:30 PM Hawkins (As Needed) SAWPA Commission Tue, Dec 19 9:30 AM CalMutuals Board Tue, Dec 19 2:00 PM Barbre YL City Council Tue, Dec 19 6:30 PM DesRoches Brea City Council Tue, Dec 19 7:00 PM Hawkins MWDOC Board Wed, Dec 20 8:30 AM OCWD Board Wed, Dec 20 5:30 PM DesRoches OC San Board Wed, Dec 27 6:00 PM Hawkins MWDOC Board Wed, Jan 3 8:30 AM OCWD Board Wed, Jan 3 5:30 p.m. DesRoches WACO Fri, Jan 5 7:30 AM Financial Review Group Tue, Jan 9 8:00 AM DesRoches/Lindsey MWDSC Board Tue, Jan 9 12:00 PM PYLUSD Board Tue, Jan 9 6:00 PM Barbre Placentia City Council Tue, Jan 9 7:00 PM Hawkins OC LAFCO Commission Wed, Jan 10 8:15 AM Page 110 of 119 ITEM NO. 17.2. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Mark Toy, General Manager SUBJECT: General Manager's Report A brief update on District activities and matters of interest as of January 3, 2024. GENERAL MANAGER The Board of Directors came together on December 11, 2023 with community leaders in our service area to officially dedicate Well 22 – the newest groundwater well in the Yorba Linda Water District. The ribbon cutting ceremony provided an opportunity for the District to demonstrate its commitment to maintaining our water infrastructure thereby ensuring water reliability for the communities we serve. On December 19, 2023 the Board of Directors convened for a Special Board meeting in order to interview prospective candidates for the open board seat. On January 4, 2024, the Board selected Mr. Gene Hernandez to fill the vacant seat. The Board will formally install the new Director at its January 11, 2024 regular meeting. The Board of Directors formally acknowledged the outstanding service of Dr. Wayne Miller to the Yorba Linda Water District in a letter dated December 19, 2023. The Board intends to acknowledge Dr. Miller's seven years of dedicated service to the Board at its January 11, 2024 regular meeting. While the Board also signaled its desire to rename the PFAS Water Treatment Plant in Dr. Miller's honor, Dr. Miller preferred that this action not be taken, and thanked the Board for this gracious gesture. On December 20, 2023 several YLWD staff members joined me to participate in Yorba Linda High School’s annual Career Day. The District was proud to join a long list of organizations and businesses that presented information to 9th-12th graders on future career opportunities. YLWD staff talked about their personal experiences and journeys in the water industry - we also had excellent dialogue with students during the question and answer sessions. Overall, it was a pleasure to participate in this community activity - we thank Yorba Linda High School for the opportunity to engage with students and faculty. ADMINISTRATION / IT / PUBLIC AFFAIRS / SAFETY ▪ As part of the District's comprehensive cybersecurity strategy, YLWD has signed up for the federal government’s Cybersecurity and Infrastructure Security Agency Free Cyber Page 111 of 119 Vulnerability Scanning for Water Utilities. YLWD has been receiving weekly reports since September 26, 2023. Benefits include (1) identifying vulnerabilities in internet-exposed services commonly used for initial access by threat actors; (2) weekly reports on scanning status and recommendations for mitigating identified vulnerabilities; (3) ongoing scanning provides a continuous feedback loop allowing for early detection and adaption to new threat; and (4) the documented reports serve as tangible evidence showcasing YLWD's adherence to security protocols and guidelines. By leveraging the weekly reports, the IT team has been able to identify and address vulnerabilities in internet-exposed services. This targeted approach has reduced the attack surface, minimizing potential entry points for threat actors. ▪ Attached is the monthly report from CommunicationsLAB and an update on the state budget from Townsend Public Affairs. ENGINEERING ▪ The Imperial Highway Waterline project is scheduled to be completed by the end of January. ▪ Staff completed the design and bid documents for four (4) Pressure Regulating Stations (PRS) to replace existing PRS (Applecreek, Paseo del Prado, Willowbrook and Stone Canyon), and for the abandonment of two (2) PRS (Sumac PRS and Wagon Wheel PRS). The six (6) PRS were advertised for bid on December 28, 2023, and the bids will be received on January 25, 2024. ▪ A draft professional services agreement was sent to Dopudja & Wells Consulting to conduct a Septic Conversion Due Diligence Study for the Not to Exceed amount of $54,575, as approved by the Board of Directors on November 21, 2023. ▪ Yvette Hanna, PE will be joining the Engineering Department as a Senior Engineer on January 8, 2024. FINANCE ▪ The payroll 2023 year-end process has been successfully completed. W-2s will be electronically available for income tax filing purposes by January 18, 2024. ▪ Staff has been notified by the U.S. Forest Service Grant #22-DG-110252012-135 that Modification #2 to Grant #22-DG-11052012-135 for the 2022 Heli-Hydrant Congressionally Directed Project has been approved for subawards to the original grant award, revisions to the budget and narrative, including the matching funds, and also updates to the list of YLWD contacts for this grant. This long-awaited good news allows us to move forward with the project. ▪ The collection status of the Capital Finance Charge is as follows: Item FY 21-22 FY 22-23 FY 23-24 # CFC Bills Placed on PT 23,888 23,967 24,126 $ Value of CFC Bills Placed on PT $2,579,520 $2,855,981 $3,120,240 $ Collected Through Bills Placed on PT $2,571,538 99.7% $2,841,697 99.5% $1,737,321 55.7% # CFC Invoices in Lieu of PT 444 273 230 $ Value of CFC Invoices $391,412 $372,528 $425,632 $ Collected CFC Via Invoices $375,164 95.8% $349,527 93.8% $317,842 74.7% HUMAN RESOURCES / RISK MANAGEMENT Page 112 of 119 ▪ The District has partnered with Longevity to provide employees with direct access to preventive healthcare screenings. Longevity will be onsite January 10, 2024. ▪ Benefit changes made during open enrollment went into effect January 1, 2024. ▪ AB 2188 went into effect January 1, 2024, making it unlawful for covered employers to discriminate against a person in hiring, termination, or any term/condition of employment because of use of cannabis off the job and away from the workplace, or as a result of an employer-required drug screening that finds the presence of non-psychoactive cannabis metabolites. Some exceptions apply to employees in specific safety-sensitive positions. OPERATIONS ▪ As winter weather has arrived, YLWD will be transitioning to 100% groundwater in the coming weeks. ▪ Metropolitan has scheduled a shutdown of the Diemer Plant and Allen-McCulloch Pipeline (AMP) from January 14-18, 2024. This will have no impact on the District as YLWD will be operating 100% groundwater. ▪ During the shutdown, YLWD will provide mutual aid support to both Golden State Water and East Orange County Water District (EOCWD) as needed. Golden State may need to turn on the interconnection at OC-66 and EOCWD is using our portable pump to support their operation during the shutdown. ▪ Additional work on the AMP will be performed April 5-25, 2024. No YLWD connections with MWD were identified as part of these shutdowns. YLWD could receive additional requests for mutual aid if the April shutdowns affect Golden State or EOCWD. ATTACHMENTS: 1. CommLAB Monthly Report 2. TPA State Budget Update 3. Employee Preventive Health Screenings Page 113 of 119 December Activity Report TO: Joanna Gonzalez, Public Information Officer, Yorba Linda Water District FROM: Diego Teran, Sr. Account Manager, Communications LAB DATE: Dec. 28, 2023 RE: Current communications projects Below are highlights of current Communications Lab projects for Yorba Linda Water District: Social Media • Agency provided new copy and pictures that client approved for the Dec. 15-Jan. 31 editorial calendar, including pictures that the agency took of client’s staff members on site. • Agency added photographs and video provided by client to reel celebrating the second anniversary of the PFAS Water Treatment Plant. • Agency added photographs provided by client to reel documenting Yorba Linda High School’s career day. General Manager Mark Toy participated in the event. Video Production • On Dec. 11, the agency filmed and took pictures of the Well 22 Dedication Ceremony. On the same day, the agency provided pictures of the event to the client. • On Dec. 20, the agency provided a video of the Well 22 Dedication Ceremony that includes aerial drone shots and ceremony footage. Later, agency provided video with edits requested by client. • Agency post-produced editing of social media reel commemorating the second anniversary of the PFAS Water Treatment Plant. Copywriting • On Dec. 8, the agency provided a draft press release of the Well 22 Dedication Ceremony. Special Events • Agency assisted with logistics for Well 22 Dedication Ceremony, which included ribbon set up, fruit snacks and utensils, shuttle of guests to and from headquarters, photography and video, and social media posts after the event. Page 114 of 119 Page 1 M E M O R A N D U M To: Yorba Linda Water District From: Townsend Public Affairs Date: January 3, 2024 Subject: State Budget Update LAO Budget Report Released In early December, the Legislative Analyst’s Office (LAO) released its Fiscal Outlook Report for the State’s 2024-25 upcoming budget cycle. The LAO’s annual Fiscal Outlook publication provides an independent assessment of the California state budget condition for the upcoming fiscal year, along with a forecast of the State’s longer-term fiscal condition. The key takeaway from the outlook report is a projected $68 billion budget shortfall in the 2024-25 fiscal year, due mostly to the net effect of unexpected revenue changes in the 2022-23 and 2023-24 fiscal years. In November, the LAO announced that it was lowering its revenue estimates by $58 billion over the 2024 Budget window – inclusive of fiscal years 2022-23 through 2024-25 – however, the comprehensive Fiscal Outlook report released in December takes a new revenue estimate, which now includes estimates of lowered 2021-22 revenues. The conditions surrounding the 2024-25 fiscal year outlook are atypical compared to recent years’ versions, which can largely be attributed to the unprecedented delay in tax return filings generated by the severe winter storms in early January 2023. The delay caused most high-earners – who contribute close to half of California’s personal tax income revenue – to delay tax return filings until the last minute. This meant that the Administration and the Legislature had an incomplete picture of 2023-24 revenues when they passed the budget in June 2023. The LAO approximates that the State overallocated close to $26 billion in the enacted 2023-24 budget. Recently, California's economy has been tempered by several factors, including that total income tax returns fell by 25% in 2022-23. Additionally, due to the Federal Reserve’s increases in interest rates to temper inflation, home sales declined by half and the State’s unemployment rates rose from 3.8% to 4.8% in 2022. Silicon Valley has seen an 80% drop in new California companies going public in 2022 and 2023 compared to 2021. While the budget outlook recommends fiscal prudence over the next few years, the LAO reports that the Legislature has a number of tools at its disposal to address the scope of the deficit, including $24 billion in reserves, cost shifts, reductions in one-time spending, and reducing spending on schools and community colleges. Looking ahead, the Governor and the Department of Finance will continue to make their own assessments of the State’s fiscal condition in preparation for the release of the January budget Page 115 of 119 Page 2 framework proposal. As is the case with most years, the status of the State’s spending plan is subject to fluctuations and could change throughout 2024 once additional tax return filings are collected and accounted for. Department Of Finance Letter Directs to Immediate Budget Reduction Actions On December 12, the California Department of Finance released a budget letter to California State Agency Secretaries regarding a current year expenditure freeze to reduce current-year General Fund expenditures. The letter cites ways to limit expenditures including: limiting new goods and services contracts, reducing information technology costs, limiting vehicle replacements, limiting office supply purchases, reducing non-essential travel, cancelling some leave buy-back programs, and deferring funding requests to the State’s Architecture Revolving Fund. The budget letter was released about a week after the 2024-25 Fiscal Outlook Report by the Legislative Analyst’s Office (LAO) was published; which forecasts the State’s upcoming budget cycle and projected $68 billion budget shortfall in the 2024-25 fiscal year. However, the letter does include exemptions for emergency and essential spending by authorizing agency secretaries and cabinet-level directors to make exemptions in limited instances, including addressing a declared emergency, providing 24-hour medical care, avoiding significant revenue losses, and achieving significant net cost savings. Page 116 of 119 10 SCREENINGS PACKAGE ONLY $275 Over half of all adults in the United States will suffer from a heart attack, cancer or stroke in their lifetime. 85% of these incidents can be prevented or successfully treated with early detection. PREVENTIVE HEALTH SCREENINGS WHEN: WEDNESDAY, JANUARY 10, 2024 WHERE: BOARD TRAINING ROOM for Cardiovascular Disease and Cancer Prevention Call 888-55-HEART Schedule your appointment: Click Here or CARDIOVASCULAR/STROKE SCREENINGS #1 Echocardiogram Ultrasound to detect early signs of heart disease. #2 Carotid Ultrasound Screens for fatty plaque in the carotid artery to detect stroke. #3 Aortic Aneurysm Screening Detects early signs of an aortic aneurysm using ultrasound. CANCER SCREENINGS Abdominal Cancer 5-in-1 Screening #4 Liver - #5 Kidneys - #6 Pancreas* - #7 Gallbladder - #8 Spleen Screens for early signs of cancer using ultrasound. #9 Thyroid Ultrasound Screens for early signs of cancer using ultrasound. #10 Colon Cancer Screening A safe and effective at-home test that yields immediate results. Complimentary with screening package OPTIONAL SCREENING Pelvic Ultrasound Screening for Women Detects abnormalities in the uterus, ovaries, and endometrium. With YLWD Employee Discount & Subsidy $375 per Family Member Flexible Spending Account Dollars Apply Valued at over $4,000 in Hospitals *Some areas of the pancreas cannot be seen using ultrasound Page 117 of 119 ITEM NO. 19.1. AGENDA REPORT MEETING DATE: January 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Meetings from January 12 - February 29, 2024 Event Date Time Attendance By Board of Directors Regular Meeting Thu, Jan 11 8:30 AM SAWPA Commission Tue, Jan 16 9:30 AM CalMutuals Board Tue, Jan 16 2:00 PM Barbre YL City Council Tue, Jan 16 6:30 PM DesRoches Brea City Council Tue, Jan 16 7:00 PM Hawkins Placentia City Council Tue, Jan 16 7:00 PM TBD MWDOC Board Wed, Jan 17 8:30 AM OCWA Meeting Wed, Jan 17 12:30 PM OCWD Board Wed, Jan 17 5:30 PM DesRoches PYLUSD Board Tue, Jan 23 6:00 PM Barbre OC San Board Wed, Jan 24 6:00 PM Hawkins YL Planning Commission Wed, Jan 24 6:30 PM Board of Directors Regular Meeting Thu, Jan 25 8:30 AM WACO Fri, Feb 2 7:30 AM Financial Review Group Tue, Feb 6 8:00 AM DesRoches/Lindsey SAWPA Commission Tue, Feb 6 9:30 AM Yorba Linda City Council Tue, Feb 6 6:30 PM Brea City Council Tue, Feb 6 7:00 PM Placentia City Council Tue, Feb 6 7:00 PM MWDOC Board Wed, Feb 7 8:30 AM OCWD Board Wed, Feb 7 5:30 PM DesRoches Board of Directors Regular Meeting Thu, Feb 8 8:30 AM MWDSC Board Tue, Feb 13 12:00 PM PYLUSD Board Tue, Feb 13 6:00 PM Barbre OC LAFCO Commission Wed, Feb 14 8:15 AM YL Planning Commission Wed, Feb 14 6:30 PM Hawkins SAWPA Commission Tue, Feb 20 9:30 AM CalMutuals Board Tue, Feb 20 2:00 PM Barbre Yorba Linda City Council Tue, Feb 20 6:30 PM TBD Placentia City Council Tue, Feb 20 7:00 PM TBD Brea City Council Tue, Feb 20 7:00 PM TBD Page 118 of 119 MWDOC Board Wed, Feb 21 8:30 AM OCWA Meeting Wed, Feb 21 12:30 PM OCWD Board Wed, Feb 21 5:30 PM DesRoches Board of Directors Regular Meeting Thu, Feb 22 8:30 AM ACWA DC Conference Tue, Feb 27 9:00 AM Barbre PYLUSD Board Tue, Feb 27 6:00 PM ACWA DC Conference Wed, Feb 28 8:00 AM Barbre OC San Board Wed, Feb 28 6:00 PM Hawkins YL Planning Commission Wed, Feb 28 6:30 PM ACWA DC Conference Thu, Feb 29 8:30 AM Barbre ISDOC Quarterly Meeting Thu, Feb 29 11:30 AM As of January 5, 2024 Page 119 of 119