The URL can be used to link to this page

Home My WebLink About2024-04-11 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, April 11, 2024, 8:30 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: https://us06web.zoom.us/j/84847248014 Telephone: (669) 444-9171 or (669) 900-6833 Meeting ID: 848 4724 8014 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 Gene Hernandez, 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. INTRODUCTIONS AND PRESENTATIONS 7.1. Introduction of Captain De Anne Wigginton, Yorba Linda Chief of Police Services 7.2. Elected Official Liaison Reports 7.3. Investment Strategy Update from PFM Asset Management 7.4. Septic to Sewer Conversion Evaluation Project Update from Dopudja & Wells Consulting 8. 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) 9. 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. Page 1 of 171 9.1. Minutes of the Board of Directors Meetings Held January 11 - February 26, 2024 Recommendation: That the Board of Directors approve the minutes as presented. 9.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $4,685,465.99 9.3. Budget to Actual Statements for the Month Ended February 29, 2024 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for the Month Ended February 29, 2024. 9.4. Cash and Investment Report for the Period Ending February 29, 2024 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the Period Ended February 29, 2024. 9.5. Single Source Procurement for Well 19 Rehabilitation Phase 2 Project Recommendation: That the Board of Directors award the Construction Contract for Well 19 Rehabilitation Phase 2 to General Pump Company for $232,427, Job No. J-2023-44 9.6. December 2023 Water Master Plan Amendment Recommendation: That the Board of Directors receive and file the amended December 2023 Water Master Plan. 9.7. Commencement of Fiscal Year 2024-25 Capital Improvement Program Projects Recommendation: That the Board of Directors approve staff to proceed with the commencement of FY24-25 Capital Improvement Program Projects. 9.8. Moratorium on New Leases, Encumbrances, and Encroachments on District Real Property Recommendation: That the Board of Directors enact a moratorium on new leases, encumbrances, and encroachments on District real property. 9.9. General Manager Renewal of Credentials Recommendation: That the Board of Directors approve the payment of fees for the General Manager to renew his credentials for 2024 as a Board Certified, Water Resources Engineer (BC.WRE) from the American Academy of Water Resources Engineers (part of the American Society of Civil Engineers - ASCE). 10. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board (or Committee) discussions are needed prior to formal action. 10.1. Award of Contract for Legal Counsel Services Recommendation: That the Board of Directors select a firm to which the contract will be awarded. Staff recommendation to be given upon request from the Board President. 10.2. 2024 Strategic Plan Recommendation: That the Board of Directors review and adopt the 2024 Strategic Plan. 10.3. Amendments to Purchasing Policy Page 2 of 171 Recommendation: That the Board of Directors adopt Resolution No. 2024-XX to amend the District’s Purchasing Policy (3010-007-POL) regarding (1) the definitions of Single Source and Sole Source Purchasing, (2) the exceptions to Board pre-authorization, and (3) other miscellaneous clarifying edits. 10.4. Elk Mountain Booster Pump Station Leak Repair Recommendation: That the Board of Directors authorize the General Manager to award a contract change order to T.E. Roberts to increase the Not To Exceed amount from $75,000 to $150,000, Job No. J-2023-33. 10.5. Nominations for OC LAFCO Regular Special District Member Seat Recommendation: That the Board of Directors consider nominating candidate(s) for election to OC LAFCO's Regular Special District Member Seat and designate two Directors to serve as the primary and alternate voting representatives in the associated election. 10.6. Proposed Changes to Board Meeting Dates and/or Times Recommendation: That the Board of Directors (1) consider shifting the time of the Board meeting on Thursday, May 16, 2024 to 9:30 a.m. to accommodate attendance at the Yorba Linda Mayor's Prayer Breakfast, (2) consider scheduling the Directors' tour of Capital Improvement Projects following the budget workshop on Thursday, May 30, 2024, and (3) consider rescheduling/canceling the Board meeting on Thursday, June 13, 2024 at 8:30 a.m. to accommodate attendance at the AWWA Conference in Anaheim. 11. REPORTS, INFORMATION ITEMS, AND COMMENTS 11.1. Director's Reports 11.2. General Manager's Report 11.3. General Counsel's Report 11.4. Future Agenda Items and Staff Tasks 12. COMMITTEE REPORTS 12.1. Interagency Committee with MWDOC and OCWD DesRoches / Lindsey 12.2. Joint Agency Committee with City of Yorba Linda Lindsey / DesRoches - Next meeting scheduled Monday, May 20, 2024 at 11:00 a.m. at Yorba Linda City Hall. 12.3. Joint Agency Committee with City of Placentia Lindsey / Hernandez 12.4. Joint Agency Committee with City of Brea Barbre / Hernandez 12.5. Joint Agency Committee with Placentia-Yorba Linda Unified School District Hernandez / Barbre 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from April 12 - May 31, 2024 14. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The Page 3 of 171 public is excused during these discussions. 14.1. Liability Claims Pursuant to Subsections 54956.9(d) and (e)(3) of the CA Government Code Claimants: Pascal & Ludwig Constructors and Mike Bubalo Construction Agency Claimed Against: Yorba Linda Water District 14.2. 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: YLWD v. Alex Winsberg (Orange County Superior Court - Case No. 30-2022-01284814-CU-OR-CJC) 14.3. Public Employee Performance Evaluation Pursuant to Section 54957 of the CA Government Code Title: General Manager 15. ADJOURNMENT 15.1. The next regular Board meeting is scheduled Thursday, April 25, 2024 at 8:30 a.m. 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 171 ITEM NO. 7.3. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Mark Toy, General Manager SUBJECT: Investment Strategy Update from PFM Asset Management At the request of the Board of Directors, Richard Babbe, Senior Managing Consultant for PFM Asset Management LLC, has been invited to provide a market and investment update. ATTACHMENTS: 1. Slide Deck - Investment Strategy Update Page 5 of 171 PFM Asset Management LLC NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE | pfmam.com PFM Asset Management LLC NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE Yorba Linda Water District 949.230.6896 April 11, 2024 Market & Investment Update Page 6 of 171 Economy Remains Resilient 2Source: Bloomberg, most recent data as of February 2024, unless otherwise noted. Q1 '23 Q2 '23 Q3 '23 Q4 '23 2024 2025 0% 1% 2% 3% 4% 5% 6% 2.2%2.1% 4.9% 3.4% 2.0 1.7 U.S. GDP Forecasts Actual Range Median of Forecasts Th o u s a n d s Ja n - 2 3 Fe b - 2 3 Ma r - 2 3 Ap r - 2 3 Ma y - 2 3 Ju n - 2 3 Ju l - 2 3 Au g - 2 3 Se p - 2 3 Oc t - 2 3 No v - 2 3 De c - 2 3 Ja n - 2 4 Fe b - 2 4 0 100 200 300 400 500 600 69 0 24 3 25 5 36 1 25 8 13 6 48 2 28 7 14 6 27 8 30 3 24 0 18 4 21 0 24 6 16 5 18 2 29 0 22 9 27 5 Monthly Change In Nonfarm Payrolls Bloomberg Forecast January and December readings revised down by combined 167K Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 Aug-23 Feb-24 0% 1% 2% 3% 4% 5% 6% 7% 8% 2.5%2.4%2.8% 1.8% 3.3%2.9% The Fed’s Key Inflation Rate Personal Consumption Expenditure Price Index, Year- over-year PCE Core PCE Supercore PCE Page 7 of 171 3/31/23 4/30/23 5/31/23 6/30/23 7/31/23 8/31/23 9/30/23 10/31/23 11/30/23 12/31/23 1/31/24 2/29/24 3/31/24 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 2-Year U.S. Treasury March 31, 2023 – March 31, 2024 Treasury Yield History 3Sources: Bloomberg, as of 03/31/2024. Term investment purchased near the peak in rates Page 8 of 171 2024 2025 2026 Longer Run 0% 2% 4% 6% 8% 4.6% 3.9% 3.1%2.6% Federal Funds Rate December Projections March Projections 2024 2025 2026 Longer Run 4% 3% 2% 1% 0% 2.6% 2.2%2.0%2.0% PCE Inflation December Projections March Projections 2024 2025 2026 Longer Run 6% 5% 4% 3% 2% 1% 0% 4.0%4.1%4.0%4.1% Unemployment Rate December Projections March Projections 2024 2025 2026 Longer Run 4% 3% 2% 1% 0% 2.1%2.0%2.0%1.8% Change in Real GDP December Projections March Projections FOMC SEP Shows Stronger Economic Story Source: Federal Reserve, latest economic projections as of March 2024.4 Page 9 of 171 Maturity Yi e l d 0% 1% 2% 3% 4% 5% 6% 5.32% 4.62% 4.41%4.20%4.34% U.S. Treasury Yield Curve 1 Year Range March 29, 2024 3mo 2yr 5yr 7yr 10yr 20yr 30 yr Yield Curve Remains Inverted Source: Bloomberg, as of 3/29/2024.5 Page 10 of 171 ORANGE COUNTY TRANSPORTATION AUTHORITY For the Quarter Ended December 31, 2023 Account Summary Operating Funds Summary Account Statistics1 Total Market Value $50,617,030 Weighted Average Maturity 15 days Yield at Cost 5.02% Portfolio Credit Quality AAA Sector Allocation 1.Market as of February 29, 2024, Values as reported on the District’s February report. 2.An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio. CAMP - Pool 24% CAMP - TERM 40% LAIF 23% Money Market Fund 9% Depository Accounts 4% Credit Quality AAAm 33% AAAf 40% Not Rated (LAIF) 23% Collateralize d 4% Overnight 36 Days 0% 25% 50% 75% 60% 40% Maturity Distribution 6 Page 11 of 171 ▸Investment Objectives (in order of priority) ▹Safety ▹Liquidity ▹Yield ▸Investment Considerations ▹What does the District want to achieve with its investments? ▹What is the timing of the District’s investment needs? ▹Interest rates are expected to fall during 2024. The amount and timing of any cuts will depend on market conditions ▸Investment Options ▹Short-term: LAIF, CAMP, and money market funds ▹Intermediate-term: CAMP-Term ▹Longer-term: Managed portfolio, Treasuries Operating Funds Investment Approach 7 Page 12 of 171 ORANGE COUNTY TRANSPORTATION AUTHORITY For the Quarter Ended December 31, 2023 Account Summary Bond Funds Summary Account Statistics1 Total Market Value $10,854,332 Weighted Average Maturity 215 days Yield at Cost 4.68% Portfolio Credit Quality AA © PFM Asset Management LLC | pfmam.com Sector Allocation 1.Market as of February 29, 2024, Values as reported on the District’s February report. 2.An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio. Credit Quality Maturity Distribution AA+ 80% AAAm 20% Overnight 0-3 Months 3-6 Months 6-9 Months 9-12 Months 12-15 Months 0% 10% 20% 30% 40% 20% 7%7% 22% 30% 14% US Treasury 80% Money Market Fund 20% 8 Page 13 of 171 ▸Investment Status ▹Currently, the 2022 Bonds have accumulated negative arbitrage ▸Investment Considerations ▹Ensure compliance with bond documents/ arbitrage regulations ▹Ensure needed liquidity ▹Minimize any negative arbitrage ▸Investment Strategy ▹Short-term: money market fund, LAIF ▹Longer-term: Treasuries Bond Funds Investment Approach 9 Page 14 of 171 Disclaimer Investment advisory services are provided by PFM Asset Management LLC (“PFMAM”), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S. Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. For more information regarding PFMAM’s services please visit www.pfmam.com. Disclaimer 10 Page 15 of 171 ITEM NO. 9.1. AGENDA REPORT MEETING DATE: April 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 January 11 - February 26, 2024 RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: 1. 2024-01-11 - Minutes - BOD Regular Meeting 2. 2024-02-08 - Minutes - BOD Regular Meeting 3. 2024-02-22 - Minutes - BOD Regular Meeting 4. 2024-02-26 - Minutes - BOD Special Meeting Page 16 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held January 11, 2024 at 8:00 a.m. 1 2024-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, January 11, 2024, 8:00 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 8:00 a.m. 3. PLEDGE OF ALLEGIANCE Vice President Lindsey led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President Doug Davert, Assistant General Manager Brett R. Barbre John DeCriscio, Operations Manager Phil Hawkins Delia Lugo, Finance Manager Gene Hernandez Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager Reza Afshar, Senior Engineer 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. SEATING OF DIRECTORS 7.1.Ratify Appointment of Eugene “Gene” J. Hernandez to Board of Directors and Administer Oath of Office Director Barbre made a motion to adopt Resolution No. 2024-XX ratifying the appointment of Eugene “Gene” Hernandez to the Board of Directors with the exception of the following language in the first paragraph as former Director J. Wayne Miller, Ph.D. was being honored for his service separately. “, served as a dedicated Board member and community leader for seven years,”. Page 17 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held January 11, 2024 at 8:00 a.m. 2 2024-XXX Director Lindsey seconded the motion which carried 4-0-0-0 on a roll call vote. President DesRoches then administered the Oath of Office to Director Hernandez. Director Hernandez thanked the Board and community for their support. 8. SPECIAL RECOGNITION 8.1.Recognition of J. Wayne Miller Ph.D., Outoing Director, for 7 Years of Service to YLWD President DesRoches explained that Doctor Miller was unable to attend due to a schedule conflict and that a proclamation from the Board honoring him for his service had been prepared along with certificates of recognition from the following: Congresswoman Young Kim, 40th District Senator Josh Newman, 29th District Assemblyman Phillip Chen, 59th District Municipal Water District of Orange County Orange County Water District City of Yorba Linda City City of Placentia President DesRoches also noted that Doctor Miller had accepted the Board’s offer to rename the PFAS Water Treatment Plant in his honor. 9. PUBLIC COMMENTS Brooke Jones commented on his previous experience serving with Doctor Miller on the Board of Directors. He also commented on Doctor Miller’s involvement with the treatment of PFAS in Orange County. Al Nederhood congratulated Director Hernandez on his appointment to the Board and commented on campaign materials associated with the November 2022 election. He also remarked on facilitating public comment for action items on the agenda. 10. CLOSED SESSION The Board entered Closed Session at 8:18 a.m. 10.1.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager Page 18 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held January 11, 2024 at 8:00 a.m. 3 2024-XXX 11. REPORT FROM CLOSED SESSION The Board returned from Closed Session at 8:50 a.m. No reportable action was taken. 12. PUBLIC COMMENTS CONTINUED (None) The following items were taken out of order. 15. ACTION CALENDAR 15.2. Request from City of Yorba Linda for District Participation as Stakeholder in Green Crest Drive Erosian Mitigation Regina Hu, Principal Civil Engineer for City of Yorba Linda, reviewed the City’s request for the District to participate as one of three stakeholders in sharing the costs for a technical and civil engineering firm to prepare an initial study to determine the scope of work and estimated costs to address erosion at this site. Topics included previous mitigation efforts, current condition of the road, and potential opportunities for reimbursement. Discussion followed regarding ownership of the road and associated easements, seismic inspection of other District facilities, estimated costs for the project, and coordinating with the property owner. Director Hernandez made a motion, seconded by Director Barbre, to (1) participate as a stakeholder in sharing 1/3 of the cost of the initial geotechnical effort, and (2) direct staff to develop a plan for communicating with the property owner regarding purchasing their portion of the road or making a financial contribution toward repairs, and to identify all potential stakeholders. Motion carried 5-0-0-0. General Counsel Gagen noted that some preliminary research of applicable regulations would need to be performed prior to approaching the property owner. The meeting was recessed at 9:36 a.m. and reconvened at 9:40 a.m. 13. INTRODUCTIONS AND PRESENTATIONS 13.1.Elected Official Liaison Reports (None) 14. CONSENT CALENDAR Director Barbre requested to remove Item Nos. 14.7 and 14.8 from the Consent Calendar for separate consideration. Director Barbre made a motion, seconded by Director Hernandez, to approve the remainder of the Consent Calendar. Motion carried 5-0-0-0. Page 19 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held January 11, 2024 at 8:00 a.m. 4 2024-XXX 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 Statements for Period Ended November 30, 2023 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for Period Ended November 30, 2023. 14.4.Cash and Investment Report for the 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.Amendments 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. 14.9.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. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE CONSIDERATION 14.7.Award of Construction Contract for Main Street Sewer Replacement Project Director Barbre requested staff include the engineer's estimate in applicable agenda reports. Page 20 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held January 11, 2024 at 8:00 a.m. 5 2024-XXX Discussion touched on the engineer’s estimate for this project, avoiding the need for potential change orders, and the specific location of the project. Director Hawkins requested to visit the site when trenching begins. Director Barbre made a motion, seconded by Director Hernandez, to award the Construction Contract for the Main Street Sewer Replacement Project to GCI Construction, Inc. for $396,418.00, Job No. J-2020-63S, with the caveat that future applicable agenda reports include the engineer’s estimate. Motion carried 5-0-0-0. 14.8.Final Payment and Notice of Completion for Well 22 Equipping Project Director Barbre inquired as to any potential liability for denying the change order request and moving forward with the proposed action. General Counsel Gagen indicated that based on the information available at this time, the District did not owe the contractor any money in response to the change order request for the alleged differing site conditions. He also briefly reviewed the procedural requirements for submitting claims and initiating litigation involving the District. Director Barbre made a motion, seconded by Director Hernandez to 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. Motion carried 5-0-0-0. 15. ACTION CALENDAR CONTINUED 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 General Counsel Gagen stated that following the Board’s annual evaluation of General Manager Toy’s performance and subsequent negotiations in regard to compensation, his recommendation as the District’s designated representative was for the Board to consider amending the employment agreement with Mr. Toy 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, the amount of the severance payment under Section 8.1. of the employment agreement will be increased from 3 months salary to 6 months salary. He reported that these terms were acceptable to General Manager Toy. Page 21 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held January 11, 2024 at 8:00 a.m. 6 2024-XXX Brief discussion followed regarding salary compaction and total compensation. Director Lindsey made a motion, seconded by Director DesRoches, to (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. Motion carried 4-0-1-0 with Director Hernandez abstaining. 16. DISCUSSION ITEMS 16.1.Board of Directors’ Committee, Agency, and Intergovernmental Meeting Assignments President DesRoches requested the Directors submit their preferred assignments to her prior to Thursday, January 25, 2024. 16.2.Board of Directors’ Compensation Director Barbre noted that the Directors’ compensation had not been adjusted since 2003 and suggested the Board consider increasing their compensation to match the annual cost of living adjustment (COLA) percentages being provided to District employees not to exceed 5%. Discussion followed regarding the amount of the eligible increase, the effect of making an adjustment at this time rather than deferring it, and the Directors’ current rate in comparison to other local water agencies. Director Barbre further noted that the Board would need to conduct a public hearing which could be scheduled for the next meeting. Director Barbre made a motion, seconded by Director Hernandez, to set a public hearing for the next Board meeting to (1) consider increasing the Directors’ compensation rate from $150.00 to $157.50 which is commensurate to the 5% COLA provided to District employees in Fiscal Year 2023-24, and (2) conduct a public hearing each calendar year to consider increasing the Directors’ compensation rate effective January 1st, beginning January 1, 2025, in an amount equal to COLA percentages provided to District employees not to exceed 5%. Motion carried 5-0-0-0. 16.3.Strategic Plan Update General Manager Toy explained that a workshop session was scheduled on Thursday, February 8, 2024 for the Board to consider revalidating the District’s strategic plan which was adopted in May 2018. He noted that President DesRoches had suggested engaging a consultant to facilitate the discussion. Page 22 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held January 11, 2024 at 8:00 a.m. 7 2024-XXX He also suggested that to prepare for the workshop, each Director consider choosing one goal from the strategic plan to review with an assigned executive staff lead and support staff beforehand. He further stated that discussion of the goals and objectives for next year's budget would occur at this same meeting as two Directors were going to be absent from the meeting on January 25, 2024. Each of the Directors then chose a goal to review as follows: Director DesRoches Goal 1: Safe and Reliable Water and Sewer Service Director Lindsey Goal 2: Fiscal Responsibility Director Barbre Goal 3: Operational Effectiveness Director Hernandez Goal 4: Community Partnership Director Hawkins Goal 5: Workforce Engagement General Manager Toy indicated that the assigned executive staff leads would be in touch with the Directors. 17. REPORTS, INFORMATION ITEMS, AND COMMENTS 17.1.Director’s Reports Director Barbre reported that MWDOC desired to highlight YLWD for their first member agency spotlight. He requested staff get in touch with their Public Affairs department to coordinate. Vice President Lindsey thanked staff for updating the informational message on customer bills. 17.2.General Manager’s Report General Manager Toy and staff responded to questions regarding topics included in the report. Discussion touched on the procedures for notifying the Board and posting on social media when heli-hydrants were in use, in the event of an incident or fire, etc. Director Barbre requested a future agenda item to consider this matter. Director Hernandez suggested staff obtain a copy of the City of Yorba Linda’s procedure. 17.3.General Counsel’s Report Director Barbre requested an update regarding the status of California Restaurant Association v. City of Berkeley. General Counsel Gagen confirmed this would be provided at the next Board meeting. Page 23 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held January 11, 2024 at 8:00 a.m. 8 2024-XXX 17.4.Future Agenda Items and Staff Tasks Director Barbre suggested that the Board consider inviting other elected officials and community leaders to the upcoming MWDOC Policy Forum and similar events. Directors will notify staff when they desire to bring a guest. Director Barbre indicated that he would be reimbursing the District $19.18 for an expense incurred and reimbursed to Board Secretary Alexander for calls made in regard to remote agenda posting while he was traveling. 18. COMMITTEE REPORTS President DesRoches inquired as to the status of scheduling future committee meetings. Staff will begin work on this following the finalization of Director assignments at the next Board meeting. 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 meeting was adjourned at 10:36 a.m. Annie Alexander Board Secretary Page 24 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 8, 2024 at 8:30 a.m. 1 2024-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, February 8, 2024, 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 Vice President Lindsey led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President Doug Davert, Assistant General Manager Brett R. Barbre John DeCriscio, Operations Manager Phil Hawkins Delia Lugo, Finance Manager Gene Hernandez Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Joanna Gonzalez, Public Affairs Officer Bree Jozwiak, Assistant Board Secretary ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA (None) 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. INTRODUCTIONS AND PRESENTATIONS 7.1 Elected Official Liaison Reports (None) 7.2 Introduction of New Hires General Manager Toy introduced the following newly hired employees: Brandon Duke, Maintenance Worker I Yvette Hanna, Senior Engineer Ashton Tennison, Maintenance Worker I Bree Jozwiak, Administrative Assistant Adrian Neri, Plant Operator I Page 25 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 8, 2024 at 8:30 a.m. 2 2024-XXX General Manager Toy also recognized Nicole Dalton, Field Customer Service Representative/Meters II, for being awarded Employee of the Quarter. 8. PUBLIC COMMENTS Nick Diaz inquired as to the status of communications with residents near Highland Reservoir regarding the access road. General Manager Toy explained that following staff review of the challenges and complexities associated with this matter, he directed Engineering Manager Weston to engage a consultant. PSOMAS will be providing assistance with this project and the erosion mitigation project on Green Crest Drive. He also noted that not all the property owners were in agreement concerning the access road. President DesRoches suggested the formation of an ad hoc review group to assist with these efforts. Directors Barbre and Hernandez volunteered to participate. Director Hernandez suggested staff communicate the current status to residents. Director Lindsey made a motion, seconded by Director Hawkins, to appoint Directors Barbre and Hernandez to serve on an ad hoc review group to support efforts related to the access road at Highland Reservoir. Motion carried 5-0-0-0. Nick Diaz and another resident continued their comments on this matter. 9. CLOSED SESSION The Board entered Closed Session at 8:52 a.m. 9.1.Liability Claims Pursuant to Section 54956.95 of the California Government Code Claimant: Sarah and Gregory Bender, Sr. Agency Claimed Against: Yorba Linda Water District 9.2.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 10. REPORT FROM CLOSED SESSION The Board returned from Closed Session at 9:13 a.m. General Counsel Gagen reported that the Board took action on Item No. 9.1., by unanimous vote, to reject the claim submitted by Sarah and Gregory Bender, Sr. which was dated December 28, 2023 and presented to the District on December 29, 2023. No other reportable action was taken. Page 26 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 8, 2024 at 8:30 a.m. 3 2024-XXX 11. CONSENT CALENDAR Director Barbre requested to remove Item No. 11.8. and Director Hernandez requested to remove Item No. 11.5. from the Consent Calendar for separate action. Director Hawkins made a motion, seconded by Director Lindsey, to approve the remainder of the Consent Calendar. Motion carried 5-0-0-0. 11.1. Minutes of the Board of Directors Meetings Held December 12, 2023 - January 4, 2024 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 $8,601,407.59. 11.3.Unaudited Financial Statements for Period Ended December 31, 2023 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the Second Quarter Ended December 31, 2023 of Fiscal Year 2023-24. 11.4. Cash and Investment Reports for Period Ended December 31, 2023 Recommendation: That the Board of Directors receive and file the Cash and Investment Reports for the Period Ended December 31, 2023. 11.6. Award of Construction Contract for Fiscal Year 2023-24 Pressure Regulating Station Replacement Project Recommendation: That the Board of Directors award the construction contract for the Fiscal Year 2023-24 Pressure Regulating Station Replacement Project to Big Ben, Inc. for $1,331,526.00, Job Nos. J-2023-46, 48, 49, 51, 52 and 53. 11.7. Award of Professional Services Agreements for the Multiple Award Task Order Contract for Professional Engineering Services Recommendation: That the Board of Directors authorize the General Manager to execute five (5) non-exclusive Professional Services Agreements for the Multiple Award Task Order Contract for Professional Engineering Services with Albert A. Webb Associates, Hazen and Sawyer, MKN & Associates, Psomas, and Tetra Tech, Inc. for an initial period of three (3) years and cumulative total not to exceed of $3,000,000. Page 27 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 8, 2024 at 8:30 a.m. 4 2024-XXX ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 11.5. Directors and General Manager Fees and Expenses Report for Second Quarter of Fiscal Year 2023-24 Director Hernandez requested a review of the District’s policy for meal reimbursement when traveling on business. Discussion followed regarding best business practices and associated requirements for utilizing alternative methods for meal reimbursement such as a per diem. Staff will provide additional information to the Board regarding this matter and obtain a copy of the City of Yorba Linda’s travel expense reimbursement policy for comparison. Director Barbre inquired as to whether the District had ordered a CalCard in his name. Staff confirmed that no card was requested. Director Barbre made a motion, seconded by Director Hawkins, to receive and file the Directors and General Manager Fees and Expenses Report for the Second Quarter of Fiscal Year 2023-24. Motion carried 5-0-0-0. 11.8. Request for Proposals for Comprehensive Classification and Compensation Study Director Barbre inquired as to whether the completed study would be presented to the Board by January 1, 2025. Staff confirmed this was correct. General Manager Toy suggested that a Director assist with reviewing the proposals once received to narrow down the number for the Board consideration. Director Barbre made a motion, seconded by Director Hernandez to authorize staff to distribute the Request for Proposals for a Comprehensive Classification and Compensation Study. Motion carried 5-0-0-0. Director Barbre made a motion, seconded by Director Hernandez, to appoint Directors Hawkins and Lindsey to serve on an ad hoc review group to review the proposals for the Comprehensive Classification and Compensation Study once received. Motion carried 5-0-0-0. 12. PUBLIC HEARINGS 12.1.Board of Directors Compensation President DesRoches opened the public at hearing at 9:27 a.m. Page 28 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 8, 2024 at 8:30 a.m. 5 2024-XXX Discussion touched on the amount of the eligible increase for Directors’ compensation, the last time the Board had increased their compensation, and the effect of making an adjustment at this time. President DesRoches opened the floor to public comment for which there was none. Discussion continued regarding the survey of other local water district’s compensation rates. Director Barbre requested that the compensation rates for Serrano Water District and Laguna Beach County Water District be included in the next survey. President DesRoches closed the public hearing at 9:31 a.m. Director Hernandez made a motion, seconded by Director Lindsey, to adopt Ordinance No. 2024-XX setting compensation for members of the Board pursuant to Section 20200 et seq. of the California Water Code and superseding Ordinance No. 03-01. Motion carried 5-0-0-0 on a roll call vote. 13. ACTION CALENDAR 13.1.Board of Directors' Committee, Agency, and Intergovernmental Meeting Assignments and Amendments to Policies and Procedures Manual Director Hernandez expressed appreciation for the ability of Directors to attend meetings for which they may not be assigned as the primary designate and noted there may be occasional conflicts with the City Council meetings and PYLUSD meetings. Director Barbre stated that he was recently appointed to serve on the advisory board for the new charter school and would be attending PYLUSD meetings. Director Hawkins made a motion, seconded by Director Barbre, to approve the continuation of existing committees and assignments and the proposed agency and governmental meeting assignments for the 2024 calendar year; and (2) adopt Resolution No. 2024-XX amending Section 9.1 of the Board of Directors Policies and Procedures Manual. Motion carried 5-0-0-0 on a roll call vote. 14. REPORTS, INFORMATION ITEMS, AND COMMENTS 14.1.Director’s Reports The Directors reported on their attendance at recent meetings and events. Vice President Lindsey requested General Manager Toy contact the WACO president regarding working with USACE to address an issue with silt at Prado Dam. Page 29 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 8, 2024 at 8:30 a.m. 6 2024-XXX 14.2.General Manager’s Report General Manager Toy referenced his report included in the agenda packet. At the request of Director Barbre, staff briefed the Board regarding repairs needed for Pre-filter No. 4 at the PFAS Water Treatment Plant and the expired warranty. President DesRoches thanked staff for their timely notification and response related to a recent water leak. General Manager Toy noted that the procedures for notifying the Board regarding incidents would be presented for consideration at the next meeting. 14.3.General Counsel’s Report General Counsel Gagen reviewed the status of California Restaurant Association v. City of Berkeley and explained that based on the outcome, there was no need for preparing an Amicus Brief as previously discussed by the Board. 14.4.Future Agenda Items and Staff Tasks Director Barbre requested staff update the Board in regard to scheduling the renaming ceremony for the PFAS Water Treatment Plant and to provide the Board with updated emergency contact cards and an updated monthly compensation form. He also asked if the Board had any specific concerns to bring up during his planned visit to Washington DC with Director Hernandez and requested a future agenda item to discuss specific concerns to bring up with OCWD and MWDOC. President DesRoches suggested that perhaps some topics would come up during the strategic plan workshop. Director Barbre also inquired as to any plan for addressing the electric vehicle mandate and suggested that the Board may want to consider pursuing legislation to repeal the law or extend the deadline for compliance. He also requested staff prepare certificates of recognition for outgoing electeds such as mayors or presidents of other local agencies on an annual basis. President DesRoches requested an agenda item to review and prioritize the District’s communications plan. 15. COMMITTEE REPORTS 15.1.Interagency Committee with MWDOC and OCWD 15.2.Joint Agency Committee with City of Yorba Linda 15.3.Joint Agency Committee with City of Placentia 15.4.Joint Agency Committee with City of Brea 15.5.Joint Agency Committee with Placentia-Yorba Linda Unified School District Page 30 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 8, 2024 at 8:30 a.m. 7 2024-XXX 16. BOARD OF DIRECTORS ACTIVITY CALENDAR 16.1 Meetings from February 9 – March 31, 2024 17. DISCUSSION ITEMS 17.1.Process for Reviewing Proposals for General Counsel Services General Manager Toy noted the 6 firms had submitted a proposal for the provision of these services and that in-person interviews and contract award were scheduled for Thursday, March 14, 2024 at 8:30 a.m. and Thursday, April 11, 2024 at 8:30 a.m. respectively. Discussion followed regarding methods for narrowing down the number of firms with which to schedule interviews. The Board determined to review the proposals and decide which firms to interview during the meeting scheduled Thursday, February 22, 2024 at 8:30 a.m. The Board also determined to reschedule the interviews to a special meeting on Tuesday, March 26, 2024 at 8:30 a.m. Discussion continued regarding developing a matrix of the firms’ qualifications and fees and the process for identifying the Board’s individual and cumulative priorities. The meeting was recessed at 10:30 a.m. and reconvened at 10:35 a.m. 17.2.Strategic Plan Update General Manager Toy introduced Joe Sterling, owner of Rainforest Strategies LLP, who facilitated the workshop. Extended discussion followed regarding each of the following goals contained in the existing strategic plan and the suggested revisions being proposed by each team: Goal 1: Safe and Reliable Water and Sewer Service Goal 2: Fiscal Responsibility Goal 3: Operational Effectiveness Goal 4: Community Partnership Goal 5: Workforce Engagement Staff made note of the priorities discussed and will present an updated draft strategic plan for Board review at a future meeting. 18. ADJOURNMENT 18.1.The meeting was adjourned at 1:40 p.m. Annie Alexander Board Secretary Page 31 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 22, 2024 at 8:30 a.m. 1 2024-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, February 22, 2024, 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 Director Barbre led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President John DeCriscio, Operations Manager Brett R. Barbre Delia Lugo, Finance Manager Phil Hawkins Lori Thompson, Human Resources and Risk Manager Gene Hernandez Rosanne Weston, Engineering Manager Joanna Gonzalez, Public Affairs Officer Bree Jozwiak, Assistant Board Secretary ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA (None) Pres. DesRoches explained that an item to review the proposals for general legal counsel services to potentially narrow down the number of firms to be interviewed on Tuesday, March 26, 2024 had been inadvertently left off the agenda. She asked if the Board would like to wait to discuss this matter until the next regular meeting on Thursday, March 14, 2024 or call a special meeting. Director Barbre made a motion, seconded by Director Hernandez, to schedule a special Board meeting on Monday, February 26, 2024 at 8:30 a.m. to narrow down the number of firms to be interviewed. Motion carried 5-0-0-0. Director Lindsey requested staff prepare a matrix of the firms’ proposed retainers, hourly rates, and services for comparison focusing on those services the District currently utilizes most. Page 32 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 22, 2024 at 8:30 a.m. 2 2024-XXX 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. PUBLIC COMMENTS (None) 8. ACTION CALENDAR 8.1.Amending Board of Directors Policies and Procedures Manual General Manager Toy summarized the most recent proposed amendments as previously discussed during the Board meeting on November 21, 2023. He then introduced Scott Tiedemann, Partner for Liebert Cassidy Whitmore, who was available to answer any questions from the Board. Director Barbre requested that the word “shall” be changed to “may” in the last sentence of Section 4.2.(G). In depth discussion followed regarding the applicability of certain provisions that could potentially hinder debate, due process for Directors who may be the subject of a complaint, allowing the Board the option of engaging outside counsel for handling the investigation, and involvement of the General Manager should the complaint involve an employee. Discussion also touched on whether complaints had to be submitted in writing, whether cross- examination of the complainant would infringe on employee rights, specific steps for the handling of complaints, and ensuring a fair and unbiased investigation. Staff will work with Mr. Teidemann to incorporate the revisions as discussed and bring this matter back for Board consideration at the meeting on March 14, 2024. The meeting was recessed at 9:53 a.m. and reconvened at 10:00 a.m. 9. DISCUSSION ITEMS 9.1 Mid-Year Review of Fiscal Year 2023-24 Budget Staff reviewed historical, budgeted, and projected production demand, revenue, variable costs, salary and related expenses, and supplies and services. Staff also reviewed the status of capital improvement projects, and historical, budgeted, and projected debt service ratios and reserve balances. Topics discussed included projected interest income, costs for the treatment of groundwater, the low percentage of uncollectible accounts, status of the heli-hydrant project at the Diemer Filtration Plant, and modifying reserve target levels. Page 33 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 22, 2024 at 8:30 a.m. 3 2024-XXX 9.2 Goals and Objectives for Fiscal Year 2024-25 Operating and Capital Budget Staff reviewed the budget development calendar, the 2021 rate study assumptions and proposed annual rate adjustments, the impact of inflation on the cost of supplies and materials, annual debt service obligations, and recommended goals and objectives for the operating budget. Discussion touched on projected assumptions for salary related expenses, increased costs for fixed and variable water supplies, and projected groundwater production. Finance Manager Lugo explained that for the District to be considered for GFOA’s budget award, the Board would need to receive and file the budget development calendar. Director Barbre made a motion, seconded by Director Hawkins, to receive and file the budget development calendar as presented. Motion carried 5-0-0-0. 9.3 Fiscal Year 2024-25 Budget Workshop #1 Staff reviewed the historical and projected production demand, the budget calculation for production demand and comparison to the 2021 rate study, historical and projected salary related expenses and variable costs, and a summary of the overall proposed budget. Staff also reviewed the proposed 5-year capital improvement project (CIP) budget. Following discussion, staff was tasked with bringing back an alternative draft CIP budget focused on the following concerns of the Board and categorized from high to low priority: (1) fire flow and fire hardening; (2) basin production percentage; (3) asset management plan; and (4) overall system optimization. 9.4 Communications Goals, Objectives, and Strategies Staff reviewed the goals, objectives, and strategies of the communications plan. Topics discussed included posting more content on social media highlighting the District’s infrastructure and history, installing plaques with QR codes near District facilities which would allow residents to view relevant historical information and photos, scheduling Director hosted infrastructure tours, and conducting open house events twice per year. President DesRoches requested staff provide an update on the status of scheduling the renaming ceremony for the PFAS Water Treatment Plant. Director Hawkins requested staff provide an update on the status of the proposed consolidation of MWDOC and OCWD. Page 34 of 171 Minutes of the YLWD Board of Directors Regular Meeting Held February 22, 2024 at 8:30 a.m. 4 2024-XXX 10. CLOSED SESSION The Board entered Closed Session at 1:30 p.m. 10.1.Public Employment Pursuant to Section 54957 of the California Government Code Title: General Counsel 11. REPORT FROM CLOSED SESSION The Board returned from Closed Session at 2:00 p.m. No reportable action was taken. 12. ADJOURNMENT 12.1.The meeting was adjourned at 2:00 p.m. Bree Jozwiak Assistant Board Secretary Page 35 of 171 Minutes of the YLWD Board of Directors Special Meeting Held February 26. 2024 at 8:30 a.m. 1 2024-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, February 26, 2024, 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 Vice President Lindsey led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Doug Davert, Assistant General Manager Tom Lindsey, Vice President John DeCriscio, Operations Manager Brett R. Barbre Delia Lugo, Finance Manager Phil Hawkins Lori Thompson, Human Resources and Risk Manager Gene Hernandez Rosanne Weston, Engineering Manager Bree Jozwiak, Assistant Board Secretary 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 (None) 8. ACTION CALENDAR 8.1.Board of Directors Legal Firm Interviews Staff provided an overview of three matrixes comparing the firm’s responses and fees. Discussion followed regarding the financial comparisons, the District’s current budget for legal services, and whether to interview all the responding firms or to narrow them down. Each of the Directors then indicated which firms they were interested in interviewing, the results of which were as follows: Page 36 of 171 Minutes of the YLWD Board of Directors Special Meeting Held February 26. 2024 at 8:30 a.m. 2 2024-XXX Firm Name Number of Directors Atkinson, Andelson, Loya, Ruud & Romo 5 Aleshire & Wynder 2 Best Best & Krieger 1 Frost Brown Todd Alvarado Smith 0 Kidman Gagen Law 4 Richards Watson Gershon 4 Discussion continued as to whether or not to interview Best Best & Krieger and Aleshire & Wynder. Director Lindsey made a motion, seconded by Director Hernandez, to interview the following three firms. Atkinson, Andelson, Loya, Rudd & Romo Kidman Gagen Law Richards Watson Gershon Director Hawkins asked if the Board would be interested in interviewing Aleshire & Wynder. Director Lindsey amended his motion to include Aleshire & Wynder which was seconded by Director Hernandez. Motion carried 5-0-0-0 on a roll call vote. Staff will notify all the firms regarding the results of the Board’s decision. Discussion followed regarding the desired format of the interviews which the Board determined to schedule as follows on Tuesday, March 26, 2024: 9:00 a.m. Aleshire & Wynder 10:00 a.m. Atkinson, Andelson, Loya, Rudd & Romo 11:00 a.m. Kidman Gagen Law 12:00 p.m. Richards Watson Gershon Directors will come prepared with questions they wish to ask the firms and each interview will last approximately 45 minutes. Staff will confirm the date originally set for awarding the contract. 9. ADJOURNMENT 9.1.The meeting was adjourned at 9:06 a.m. Bree Jozwiak Assistant Board Secretary Page 37 of 171 ITEM NO. 9.2. AGENDA REPORT MEETING DATE: April 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 $4,685,465.99. 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 February 29, 2024, through March 28, 2024, for the Board of Directors’ approval. Items within this disbursement list include: Ten Highest Expenses for Disbursement U S Bank 750,453.18 Bond 22A Interest - Mar 2024 Pacific Hydrotech Corporation 547,838.80 J20-37 Timber Ridge Professional Svcs U S Bank 535,259.66 Bond 17A Interest - Mar 2024 Pacific Hydrotech Corporation 484,426.38 J18-27 Hidden Hills Booster Professional Svcs T. E. Roberts, Inc 401,953.39 J21-46 Imperial Highway Waterline Svcs ACWA/JPIA 162,983.76 Medical & Dental Premium Apr 2024 Southern Calif Edison Co. 123,766.02 Electricity Charges - Feb 2024 Various Loc Municipal Water District 119,086.48 Water Deliveries - Jan 2024 G.M. Sager Construction Co., Inc. 49,000.00 Paving Work At Various Loc Kidman Gagen Law 42,001.26 Legal Services - Feb 2024 Page 38 of 171 $ 3,216,768.93 Other Routine Invoices $ 688,319.59 Accts Payable Check Total $ 3,905,088.52 Payroll No. 05 Payroll No. 06 $ 390,236.54 390,140.93 Total Disbursements $ 4,685,465.99 A summary of the disbursements is attached. ATTACHMENTS: 1. Cap Sheet for April 11, 2024 2. Check Register for March 14, 2024 3. Check Register for March 28, 2024 Page 39 of 171 CHECK NUMBERS: 3/14/2024 Computer Checks 83788-83870 1,265,665.44$ 3/28/2024 Computer Checks 83875-83950 1,010,220.98 2,275,886.42$ WIRES: IW031124 Southern Calif Edison Co. 123,766.02$ W031424 Municipal Water District 119,086.48 W031424A Southern Calif Gas Co. 18,476.52 W031424B American Business Bank 25,496.12 W031524 Longhorn Fab Shop LLC 26,580.00 W032024 Switch Ltd 741.00 W032824 U S Bank 535,259.66 W032824A U S Bank 750,453.18 W032824B American Business Bank 509.50 W032824C American Business Bank 28,833.62 1,629,202.10$ 3,905,088.52$ PAYROLL NO. 05: Direct Deposits 240,296.52$ Payroll Taxes 63,073.51 EFT -- CalPERS 57,775.06 Third Party Checks 83784-83787 29,091.45 390,236.54$ PAYROLL NO. 06: Direct Deposits 238,198.79$ Payroll Taxes 64,860.39 EFT -- CalPERS 59,711.43 Third Party Checks 83871-83874 27,370.32 390,140.93$ 780,377.47$ 4,685,465.99$ ================================================================ MEETING OF APRIL 11, 2024 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD ================================================================ DISBURSEMENT TOTAL Summary of Disbursements April 11, 2024 ------------------------------------------------------------------------------------------------------------------ TOTAL OF CHECKS & WIRES TOTAL OF PAYROLL Page 40 of 171 Check No.Date Vendor Name Amount Description 83788 03/14/2024 SARA SHIPMAN 0.64 CUSTOMER REFUND 83789 03/14/2024 DARRYL SWARTZ 19.96 CUSTOMER REFUND 83790 03/14/2024 PACKING HOUSE YL LLC C/O PRES COMPANIES 1,193.75 CUSTOMER REFUND 83791 03/14/2024 MICHAEL NAUDIN 158.31 CUSTOMER REFUND 83792 03/14/2024 GEORGE A GURROLA 87.41 CUSTOMER REFUND 83793 03/14/2024 LISA FRANCESE 14,460.00 SEWER CASH BOND REFUND J21-48S 83794 03/14/2024 YVETE MINOR 69.58 CUSTOMER REFUND 83795 03/14/2024 JAIMINKUMAR BHAGAT 98.88 CUSTOMER REFUND 83796 03/14/2024 XIAOBO ZHOU 504.88 CUSTOMER REFUND 83797 03/14/2024 NATHAN JACKSON 102.80 CUSTOMER REFUND 83798 03/14/2024 HONGLEI ZHU 27.16 CUSTOMER REFUND 83799 03/14/2024 Amazon Capital Services 414.12 IT COMPUTER SUPPLIES & PARTS FOR UNIT #107 83800 03/14/2024 America's Instant Signs 1,609.50 YLWD FLAGS 83801 03/14/2024 Aramark 621.68 UNIFORM SERVICE 83802 03/14/2024 Base Hill Inc. 6,142.58 JANITORIAL SERVICES 83803 03/14/2024 BrightView Tree Care Services Inc. 480.00 FAIRMONT LANDSCAPE SERVICES 83804 03/14/2024 Business Process Automation Company 1,075.00 SCANNER ANNUAL MAINTENANCE AGREEMENT 83805 03/14/2024 Chameleon Beverage Company, Inc. 4,429.40 BOTTLED WATER WITH LOGO 83806 03/14/2024 CIPO Cloud Software Inc 700.00 CLOUD MONTHLY SUBSCRIPTION 83807 03/14/2024 City Of Placentia 4,417.67 SEWER COLLECTIONS - FEBRUARY 2024 83808 03/14/2024 Clinical Lab. Of San Bern. 3,920.00 WATER QUALITY LAB WORK 83809 03/14/2024 Coastline Equipment 829.51 SERVICE WORK FOR UNIT #242 83810 03/14/2024 Cogsdale Services Corporation 1,575.00 VIRTUAL CARD FILE BUILD FOR GP 83811 03/14/2024 Communications Lab 5,000.00 PROFESSIONAL SERVICES FEBRUARY 2024 83812 03/14/2024 Dell Financial Services LLC 3,519.18 OFFICE 365 SUPPORT & HEADSET FOR IT 83813 03/14/2024 Dick's Lock & Safe Inc. 165.00 HIGHLAND GATE SERVICE WORK 83814 03/14/2024 Discount Tire Centers (Andonian Enterprises Inc.) 952.51 TIRES FOR UNIT #228 83815 03/14/2024 Dean Criske Trucking 1,567.30 ROAD MATERIAL 83816 03/14/2024 Elite Equipment Inc 491.31 TRENCH DIGGER REPAIR 83817 03/14/2024 Firemaster 2,500.90 FIRE EXTINGUISHER MAINTENANCE 83818 03/14/2024 GCI Construction Inc. 34,817.13 RETENTION RELEASE J22-48 83819 03/14/2024 General Pump Co., Inc. 26,100.00 J23-44 WELL 19 REHABILITATION SERVICE JANUARY 2024 83821 03/14/2024 G.M. Sager Construction Co., Inc. 49,000.00 PAVING WORK AT VARIOUS LOCATIONS 83822 03/14/2024 Grainger 1,362.84 PART FOR UNIT #180 & VALVE FOR PRODUCTION REPAIR 83823 03/14/2024 Haaker Equipment Co. 3,679.18 PARTS FOR UNIT #197 & 241, SEWER CAMERA REPAIR PARTS 83824 03/14/2024 Harrington Industrial 118.19 CL2 SYSTEM PARTS 83825 03/14/2024 ID Wholesaler 521.89 BLANK ID CARDS 83826 03/14/2024 Infosend Inc. 12,320.00 BILLING & POSTAGE CUSTOMER BILL 83827 03/14/2024 Inland (Kenworth) 118.78 PARTS FOR WATER & SEWER VEHICLES 83828 03/14/2024 Jackson's Auto Supply - Napa 73.75 PARTS FOR UNIT #107 & CLAMP FOR WELL #5 83829 03/14/2024 Jasper Engine Exchange Inc. 5,073.05 PARTS FOR UNIT #107 83830 03/14/2024 Joshua Ocampo 345.00 CERTIFICATE REIMBURSEMENT - DISTRIBUTION 3 & TREATMENT 2 83831 03/14/2024 KB Design 99.78 YLWD LOGO EMBROIDERY FOR STAFF SHIRTS 83832 03/14/2024 Kidman Gagen Law 42,001.26 LEGAL SERVICES - FEBRUARY 2024 83833 03/14/2024 LPR-Laser Printer Repair Co 125.00 ON SITE PRINTER MAINTENANCE 83834 03/14/2024 MAP Communications 467.01 AFTER HOURS PHONE SERVICE 83835 03/14/2024 Mario S. Banuelos 3,120.00 BOILER LINE WELDING REPAIR 83836 03/14/2024 Richard Mark Toy 128.76 TRAVEL REIMBURSEMENT - ACWA DC CONFERENCE 83837 03/14/2024 Mc Fadden-Dale Hardware 583.29 PARTS FOR UNIT #210 & PRODUCTION HARDWARE SUPPLIES 83838 03/14/2024 Mc Master-Carr Supply Co. 1,350.55 PRODUCTION TOOLS & PARTS FOR CLA VAL REPAIRS 83839 03/14/2024 Nickey Kard Lock Inc 7,637.18 FUEL 2/16/24-2/29/24 83840 03/14/2024 Office Solutions 1,801.34 CHECKS & OFFICE SUPPLIES 83841 03/14/2024 Orange County - HCA 30.00 HAZMAT DISCLOSURES 2023-2024 83842 03/14/2024 Orange County Sanitation District 3,279.97 J23-34S CAPITAL FACILITY CAPACITY CHARGE 83843 03/14/2024 Pacific Hydrotech Corporation 484,426.38 J18-27 HIDDEN HILLS BOOSTER PROFESSIONAL SERVICES 83844 03/14/2024 Pete's Road Service Inc 1,413.55 TIRES FOR UNIT #196 83845 03/14/2024 Linde Gas & Equipment Inc. 142.45 WELDING SUPPLIES 83846 03/14/2024 Precision Aerial Services, Inc 902.44 PARTS FOR UNIT #207 83847 03/14/2024 P.T.I. Sand & Gravel, Inc. 1,661.22 ROAD MATERIAL 83848 03/14/2024 Quinn Company 938.48 OIL FILTER FOR GAS ENGINES 83849 03/14/2024 Resource Computer Solutions 29,045.00 IT CONSULTATION 2/15/24-3/14/24 & CAMERA CONFIGURATIONS 83850 03/14/2024 RKI Engineering, LLC 12,080.00 PLANT & SCADA CONTROL SUPPORT 83851 03/14/2024 Security Solutions 775.00 CARD READER SITE SERVICE - RICHFIELD 83852 03/14/2024 The Sherwin-Williams Co. 327.39 FACILITIES PAINT SUPPLIES 83853 03/14/2024 Kandice Sherwood 500.00 PROFESSIONAL SERVICES CONTRACT For Checks Dated: 2/29/2024 thru 3/14/2024 Yorba Linda Water District Check Register Page 41 of 171 83854 03/14/2024 Shred Confidential, Inc. 91.13 MONTHLY SHRED SERVICE 83855 03/14/2024 So Cal Sandbags Inc. 1,114.38 FILLED SANDBAGS 83856 03/14/2024 Steve Clayton 90.00 CERTIFICATE REIMBURSEMENT - TREATMENT 3 83857 03/14/2024 T. E. Roberts, Inc 401,953.39 J21-46 IMPERIAL HIGHWAY WATERLINE SERVICE 83858 03/14/2024 Total Administrative Service Corp (TASC) 599.76 FSA ADMIN FEES 4/1/24-6/30/24 83859 03/14/2024 Townsend Public Affairs, Inc. 5,000.00 CONSULTING SERVICES - MARCH 2024 83860 03/14/2024 Underground Service Alert 372.43 NEW TICKET CHARGES & CA STATE FEE 83861 03/14/2024 United Industries 150.84 OPERATIONS PPE & CLEANING MATERIALS 83862 03/14/2024 United Rentals 447.11 CONCRETE RENTAL & MIX 83863 03/14/2024 WattLogic, LLC 21,982.90 LIGHT FIXTURES FOR FACILITIES 83864 03/14/2024 United Water Works, Inc. 40,767.35 OPERATIONS WORK MATERIAL 83865 03/14/2024 Vision Service Plan 2,823.07 VISION SERVICE PLAN - MARCH 2024 83866 03/14/2024 Vivian Lim 1,391.46 TRAVEL REIMBURSEMENT - LCW CONFERENCE 83867 03/14/2024 Walters Wholesale Electric Co. 405.68 CABLES FOR FACILITIES 83868 03/14/2024 West Coast Batteries Inc 659.97 BATTERIES FOR UNITS #107 & 205 83869 03/14/2024 YO Fire 3,362.21 OPERATIONS WORK MATERIAL 83870 03/14/2024 Gene Hernandez 953.87 TRAVEL REIMBURSEMENT - ACWA DC CONFERENCE IW031124 03/11/2024 Southern Calif Edison Co. 123,766.02 ELECTRICITY CHARGES - FEBRUARY 2024 VARIOUS LOCATIONS W031424 03/14/2024 Municipal Water District 119,086.48 WATER DELIVERIES - JANUARY 2024 W031424A 03/14/2024 Southern Calif Gas Co. 18,476.52 GAS CHARGES - FEBRUARY 2024 VARIOUS LOCATIONS W031424B 03/14/2024 American Business Bank 25,496.12 PACIFIC HYDROTECH RETENTION ESCROW HOLDINGS 1,552,490.58 02/29/2024 PAYROLL - EMPLOYEE DIRECT DEPOSIT 240,296.52 02/29/2024 PAYROLL - PAYROLL TAX PAYMENT 63,073.51 02/29/2024 PAYROLL - CALPERS & TASC 57,775.06 83784 02/29/2024 California State Disbursement Unit 665.88 83785 02/29/2024 Colonial Life 88.21 83786 02/29/2024 Lincoln Financial Group 2,294.24 83787 02/29/2024 Nationwide Retirement Solutions 26,043.12 390,236.54 Payroll Checks #05 Page 42 of 171 Check No.Date Vendor Name Amount Description 83875 03/28/2024 ANGELO CLEMENTI 77.03 CUSTOMER REFUND 83876 03/28/2024 JAMES L NEBEL 164.37 CUSTOMER REFUND 83877 03/28/2024 YANG WANG 27.28 CUSTOMER REFUND 83878 03/28/2024 PACKING HOUSE YL LLC C/O PRES COMPANIES 365.82 CUSTOMER REFUND 83879 03/28/2024 JHT GROUP INC 793.40 CUSTOMER REFUND 83880 03/28/2024 JESUS LIM 206.81 CUSTOMER REFUND 83881 03/28/2024 WOODBURN LANE LLC 889.71 CUSTOMER REFUND 83882 03/28/2024 ACWA/JPIA 162,983.76 MEDICAL & DENTAL PREMIUM APRIL 2024 83883 03/28/2024 ADCO Roofing, Inc 950.00 RICHFIELD ROOF REPAIRS 83884 03/28/2024 Airgas Inc 248.84 WELDING SUPPLIES 83885 03/28/2024 Alternative Hose Inc.183.27 PARTS FOR UNIT #145 83886 03/28/2024 Amazon Capital Services 1,183.32 SECURITY CAMERA SUPPLIES & PARTS FOR UNIT #107 83887 03/28/2024 American Cast Bronze Plaques, LLC 1,760.00 PLAQUE FOR PFAS TREATMENT PLANT 83888 03/28/2024 Aramark 701.73 UNIFORM SERVICE 83889 03/28/2024 AT & T - Calnet3 2,424.34 ATT CALNET 83890 03/28/2024 AT & T - Calnet3 93.46 ATT CALNET 83891 03/28/2024 A & Y Asphalt Contractors Inc.39,660.00 PAVING WORK AT VARIOUS LOCATIONS 83892 03/28/2024 BPS Supply Group 471.16 BOILER REPAIR PARTS 83893 03/28/2024 BrightView Tree Care Services Inc.3,450.00 MONTHLY LANDSCAPE SERVICE 83894 03/28/2024 Briana Jozwiak 20.10 MILEAGE REIMBURSEMENT - AGENDA DELIVERY TO DIRECTORS 83895 03/28/2024 Carlos Murillo 103.00 CERTIFICATE REIMBURSEMENT - COLLECTIONS 2 83896 03/28/2024 CDW Government, Inc 849.68 PRINTER & DATA CARDS FOR IT 83897 03/28/2024 Christopher Perkins 349.99 WATER TREATMENT BASICS CLASS REIMBURSEMENT 83898 03/28/2024 CIPO Cloud Software Inc 700.00 CLOUD MONTHLY SUBSCRIPTION 83899 03/28/2024 City Of Anaheim - Anaheim Public Utilities 35,797.41 ELECTRICAL CHARGES FEBRUARY 2024 - VARIOUS LOCATIONS 83900 03/28/2024 Clinical Lab. Of San Bern.2,080.00 WATER QUALITY LAB WORK 83901 03/28/2024 DCL America Inc.433.91 GASKETS FOR STATIONARY ENGINES 83902 03/28/2024 Dell Financial Services LLC 6,994.48 WINDOWS SERVER LICENSES & DELL SUPPORT 83903 03/28/2024 Eisel Enterprises, Inc.9,164.14 VALVE BOXES AND LIDS 83904 03/28/2024 Enkay Engineering & Equipment Inc 950.00 TRANSITE PIPE PICKUP (ASBESTOS) 83905 03/28/2024 Enthalpy Analytical, Inc.8,113.00 WATER QUALITY TESTING 83906 03/28/2024 Fieldman Rolapp & Associates 970.00 PROFESSIONAL SERVICES FEBRUARY 2024 83907 03/28/2024 Firemaster 700.00 FIRE EXTINGUISHER TRAINING 83908 03/28/2024 Fullerton Paint & Flooring 1,303.64 HYDRANT & AIRVAC PAINT 83909 03/28/2024 G.M. Sager Construction Co., Inc.40,140.00 J24-09 PAVING REPAIR 83910 03/28/2024 Grainger 869.33 PARTS FOR HIGHLAND GAS ENGINE & A/C UNIT 83911 03/28/2024 Haaker Equipment Co.3,104.50 PARTS FOR UNITS #197, 215 & 241 83912 03/28/2024 Harrington Industrial 2,692.44 CL2 SYSTEM PARTS & FILTERS 83913 03/28/2024 Health and Human Resource Center, Inc.129.60 EAP - APRIL 2024 83914 03/28/2024 Infosend Inc.4,360.64 BILLING & POSTAGE CUSTOMER BILL 83915 03/28/2024 Jackson's Auto Supply - Napa 242.55 PARTS FOR UNIT #107 83916 03/28/2024 Jacqueline Segura 95.47 TRAVEL EXPENSE REIMBURSEMENT - SHAW HR CONFERENCE 83917 03/28/2024 Jesus Arroyo 134.00 CERTIFICATE REIMBURSEMENT - CLASS A LICENSE 83918 03/28/2024 John R Brundahl III 105.00 CERTIFICATE REIMBURSEMENT - TREATMENT 4 83919 03/28/2024 KB Design 221.96 SHIRTS & EMBROIDERY FOR STAFF 83920 03/28/2024 Kimball Midwest 586.73 TOOLS FOR MECHANIC SHOP 83921 03/28/2024 Konica Minolta Business 735.46 COPIER AGREEMENT 83922 03/28/2024 LA Networks 26,460.00 CISCO PHONE SERVICE SUPPORT 83923 03/28/2024 Leighton Consulting, Inc.4,715.21 J21-46 IMPERIAL WATERLINE SERVICE JANUARY 2024 83924 03/28/2024 Liebert Cassidy Whitmore 4,730.00 ERC MEMBERSHIP & LIBRARY ACCESS 83925 03/28/2024 Mc Fadden-Dale Hardware 443.42 PARTS FOR UNIT #175 & PRODUCTION REPAIR PARTS 83926 03/28/2024 Mc Master-Carr Supply Co.144.43 GAUGES FOR AC UNIT 83927 03/28/2024 MCR Technologies Inc.2,986.40 WELL METER CALIBRATIONS 83928 03/28/2024 Mid-West Hose & Specialty, Inc 716.37 EQUIPMENT FOR VACTOR TRUCK 83929 03/28/2024 NatPay Online Business Solutions 40.97 DOCULIVERY - FEBRUARY 2024 83930 03/28/2024 Nickey Kard Lock Inc 8,810.55 FUEL 3/1/24-3/15/24 83931 03/28/2024 OC United 3,500.00 LOVE YORBA LINDA SPONSORSHIP 2024 83932 03/28/2024 Orkin Pest Control 533.98 PEST CONTROL 83933 03/28/2024 Pacific Hydrotech Corporation 9,680.50 J18-27 HIDDEN HILLS BOOSTER PROFESSIONAL SERVICES 83934 03/28/2024 Pacific Hydrotech Corporation 547,838.80 J20-37 TIMBER RIDGE PROFESSIONAL SERVICES 83935 03/28/2024 Pete's Road Service Inc 1,864.34 TIRE SERVICE FOR UNIT #145 83936 03/28/2024 Pollard Water 407.81 HEADPHONES FOR LEAK DETECTION EQUIPMENT 83937 03/28/2024 Quadient Leasing USA Inc 286.82 LEASE PAYMENT 3/27/24-6/26/24 For Checks Dated: 3/14/2024 thru 3/28/2024 Yorba Linda Water District Check Register Page 43 of 171 83938 03/28/2024 Resource Computer Solutions 164.25 SECURITY TOKENS FOR IT 83939 03/28/2024 Richard Rodriguez 90.00 CERTIFICATE REIMBURSEMENT - DISTRIBUTION 3 83940 03/28/2024 Step Saver Inc 5,592.07 SALT FOR CL2 SYSTEM 83941 03/28/2024 Sunrise Medical Group 350.00 EMPLOYEE PHYSICALS 83942 03/28/2024 Superior Printing, Inc.73.32 DEPOSIT SLIP BOOK 83943 03/28/2024 Tetra Tech, Inc.18,210.00 J20-37 TIMBER RIDGE PROFESSIONAL SERVICES 83944 03/28/2024 United Industries 147.90 OPERATIONS PPE 83945 03/28/2024 UNUM Life Insurance Co. of America 6,315.08 LIFE,AD&D,STD&LTD - APRIL 2024 83946 03/28/2024 U S Postal Service(Hasler)3,000.00 REPLENISH FUNDS FOR POSTAL METER 83947 03/28/2024 United Water Works, Inc.7,746.26 OPERATIONS WORK MATERIAL 83948 03/28/2024 West Coast Safety Supply Co 7,862.41 NEW PIPE RACK FOR OPERATIONS 83949 03/28/2024 Westside Building Material 423.53 PADLOCK & WIRE BRUSH FOR OPERATIONS 83950 03/28/2024 YO Fire 8,505.23 OPERATIONS WORK MATERIAL W031524 03/15/2024 Longhorn Fab Shop LLC 26,580.00 ENGINE ROTATOR FOR MECHANIC SHOP W032024 03/20/2024 Switch Ltd 741.00 DATA HOSTING CO-LOCATION W032824 03/28/2024 U S Bank 535,259.66 BOND 17A INTEREST - MARCH 2024 W032824A 03/28/2024 U S Bank 750,453.18 BOND 22A INTEREST - MARCH 2024 W032824B 03/28/2024 American Business Bank 509.50 PACIFIC HYDROTECH RETENTION ESCROW HOLDINGS W032824C 03/28/2024 American Business Bank 28,833.62 PACIFIC HYDROTECH RETENTION ESCROW HOLDINGS 2,352,597.94 03/14/2024 PAYROLL - EMPLOYEE DIRECT DEPOSIT 238,198.79 03/14/2024 PAYROLL - PAYROLL TAX PAYMENT 64,860.39 03/14/2024 PAYROLL - CALPERS & TASC 59,711.43 83871 03/14/2024 California State Disbursement Unit 665.88 83872 03/14/2024 Colonial Life 88.21 83873 03/14/2024 Lincoln Financial Group 2,288.17 83874 03/14/2024 Nationwide Retirement Solutions 24,328.06 390,140.93 Payroll Checks #06 Page 44 of 171 ITEM NO. 9.3. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Sophia Phuong, Accounting Supervisor SUBJECT: Budget to Actual Statements for the Month Ended February 29, 2024 RECOMMENDATION: That the Board of Directors receive and file the Budget to Actual Reports for the Month Ended February 29, 2024. BACKGROUND: Presented are the Budget to Actual Reports for the Month Ended February 29, 2024 for the District. For the month ended February 29, 2024, 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 February 29, 2024, reflects an average increase of approximately 18% as compared to the prior year through the same reporting period. Total Variable Costs results, as reported through the month ending January 31, 2024, reflect an approximate 9% increase when compared to prior year results for the same reporting period. Use of groundwater accounts for approximately 85.7% 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 Statements Through February 29, 2024 Page 45 of 171 Summary Financial Report Water & Sewer Funds Annual YTD Feb YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over Feb Actual Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Feb 2023) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 19,683,344$ $13,187,840 1,068,708$ 11,904,582$ (1,283,258)$ 885,807$ 9,860,393$ 2,044,189$ 20.73% Water Revenue (Commercial & Fire Det.) 2,016,621 $1,351,136 141,958 1,338,045 (13,091) 110,440 1,130,908 207,137 18.32% Water Revenue (Landscape/Irrigation) 4,769,326 $3,195,448 91,553 2,868,340 (327,108) 64,850 2,454,009 414,331 16.88% Water Revenue (Service Charge) 16,076,351 10,717,567 1,344,007 10,631,806 (85,761) 1,229,661 9,721,411 910,395 9.36% Property Taxes - CFC Charges 3,597,389 2,050,512 280 2,210,009 159,497 371,460 2,011,027 198,982 9.89% Sewer Charge Revenue 3,582,947 2,388,631 296,531 2,367,521 (21,110) 257,004 2,051,474 316,047 15.41% Locke Ranch Assessments 410,497 233,983 223 239,253 5,270 1 210,955 28,298 13.41% Other Operating Revenue 1,327,217 884,811 67,730 851,565 (33,246) 57,999 968,432 (116,867) -12.07% Total Operating Revenue: 51,463,692 34,009,930 3,010,990 32,411,121 (1,598,809) 2,977,222 28,408,609 4,002,512 14.09% Revenue (Non-Operating): Interest 948,000 632,000 87,400 1,233,206 601,206 42,944 542,697 690,509 127.24% Property Tax 2,402,796 1,369,594 9,034 1,379,647 10,053 5,097 1,319,327 60,320 4.57% Other Non-Operating Revenue 735,458 490,305 65,836 735,205 244,900 25,058 1,083,089 (347,884) -32.12% Total Non-Operating Revenue: 4,086,254 2,491,899 162,270 3,348,058 856,159 73,099 2,945,113 402,945 13.68% Total Revenue 55,549,946 36,501,829 3,173,260 35,759,179 (742,650) 3,050,321 31,353,722 4,405,457 14.05% Expenses (Operating): Variable Water Costs (G.W., Import & Powe 19,891,169 13,327,083 713,664 11,956,292 (1,370,791) 920,260 10,945,642 1,010,650 9.23% Salary Related Expenses 14,376,672 8,847,183 1,368,268 8,111,376 (735,807) 860,901 7,320,096 791,280 10.81% Supplies & Services 10,489,766 6,993,177 566,683 4,627,271 (2,365,906) 652,553 5,053,584 (426,313) -8.44% Total Operating Expenses 44,757,607 29,167,443 2,648,615 24,694,939 (4,472,504) 2,433,714 23,319,322 1,375,617 5.90% Expenses (Non-Operating): Interest on Long Term Debt 2,604,419 1,736,279 182,523 1,478,046 (258,233) 192,344 1,463,732 14,314 0.98% Other Expense 18,625 12,417 5,459 24,974 12,557 (3,477) 388,269 (363,295) -93.57% Total Non-Operating Expenses: 2,623,044 1,748,696 187,982 1,503,020 (245,676) 188,867 1,852,001 (348,981) -18.84% Total Expenses 47,380,651 30,916,139 2,836,597 26,197,960 (4,718,180) 2,622,581 25,171,323 1,026,636 4.08% Net Position Before Capital Contributions 8,169,295 5,585,690 336,663 9,561,219 3,975,530 427,740 6,182,399 3,378,820 54.65% Capital Contributions (Non-Cash - - 503,369 948,660 948,660 24,672,516 25,466,436 (24,517,776) -96.27% Transaction GASB 34 Compliant) Net Position Before Depreciation 8,169,295 5,585,690 840,032 10,509,879 4,924,190 25,100,256 31,648,835 (21,138,956) -66.79% Depreciation & Amortization 9,379,000 6,252,667 756,893 6,068,985 (183,682) 762,221 5,988,051 80,934 1.35% Total Net Position (1,209,705)$ (666,977)$ 83,139$ 4,440,894$ 5,107,872$ 24,338,035$ 25,660,784$ (21,219,890)$ -82.69% (With February 28, 2023 for comparison purposes) Yorba Linda Water District For Period Ending February 29, 2024 Page 46 of 171 Annual YTD Feb YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Feb Actual (thru vs vs FY24 FY24 FY23 FY24 YTD Budget FY23 Feb 2023) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 19,683,344$ $13,187,840 1,068,708$ 11,904,582$ (1,283,258)$ 885,807$ 9,860,393$ 2,044,189$ 21% Water Revenue (Commercial & Fire Det.) 2,016,621 $1,351,136 141,958 1,338,045 (13,091) 110,440 1,130,908 207,137 18% Water Revenue (Landscape/Irrigation) 4,769,326 $3,195,448 91,553 2,868,340 (327,108) 64,850 2,454,009 414,331 17% Water Revenue (Service Charge) 16,076,351 10,717,567 1,344,007 10,631,806 (85,761) 1,229,661 9,721,411 910,395 9% Water Revenue (CFC) 3,597,389 2,050,512 280 2,210,009 159,497 371,460 2,011,027 198,982 10% Other Operating Revenue 1,252,987 835,325 55,028 765,347 (69,978) 56,625 888,863 (123,516) -14% Total Operating Revenue: 47,396,018 31,337,829 2,701,534 29,718,129 (1,619,700) 2,718,843 26,066,611 3,651,518 14% Revenue (Non-Operating): Interest 780,000 520,000 72,997 975,326 455,326 33,289 434,797 540,529 124% Property Tax 2,402,796 1,369,594 9,034 1,379,647 10,053 5,097 1,319,327 60,320 5% Other Non-Operating Revenue 718,823 479,215 58,054 713,052 233,837 27,442 1,008,478 (295,426) -29% Total Non-Operating Revenue: 3,901,619 2,368,809 140,085 3,068,025 699,216 65,828 2,762,602 305,423 11% Total Revenue 51,297,637 33,706,638 2,841,619 32,786,154 (920,484) 2,784,671 28,829,213 3,956,941 14% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 19,891,169 13,327,083 713,664 11,956,292 (1,370,791) 920,261 10,945,642 1,010,650 9% Salary Related Expenses 12,155,919 7,480,566 1,159,176 6,913,497 (567,069) 728,616 6,187,808 725,689 12% Supplies & Services: Communications 210,004 140,003 14,457 115,831 (24,172) 11,959 123,777 (7,946) -6% Contractual Services 634,152 422,768 45,826 379,845 (42,923) 48,118 385,790 (5,945) -2% Data Processing 463,532 309,021 26,122 231,678 (77,343) 24,290 212,532 19,146 9% Dues & Memberships 106,833 71,222 3,592 65,405 (5,817) 1,971 65,125 280 0% Fees & Permits 444,853 296,569 38,203 315,013 18,444 59,673 332,439 (17,426) -5% Board Election - - - - - - - - 0% Insurance 412,250 274,833 34,292 259,767 (15,066) 27,083 203,693 56,074 28% Materials 2,383,837 1,589,225 110,247 679,630 (909,595) 72,180 777,513 (97,883) -13% District Activities, Emp Recognition 58,223 38,815 2,336 18,310 (20,505) 1,222 23,457 (5,147) -22% Maintenance 1,467,855 978,570 54,887 604,235 (374,335) 119,833 606,347 (2,112) 0% Non-Capital Equipment 253,285 168,857 13,114 63,788 (105,069) 4,089 106,188 (42,400) -40% Office Expense 40,418 26,945 4,110 24,105 (2,840) 2,561 22,341 1,764 8% Professional Services 1,417,133 944,755 82,682 619,437 (325,318) 103,868 809,974 (190,537) -24% Training 62,396 41,597 1,150 14,792 (26,805) 1,472 21,532 (6,740) -31% Travel & Conferences 86,462 57,641 4,842 29,997 (27,644) 1,042 15,786 14,211 0% Uncollectible Accounts 12,750 8,500 3,142 6,945 (1,555) 2,229 15,917 (8,972) -56% Utilities 340,000 226,667 10,721 124,745 (101,922) 31,362 212,309 (87,564) -41% Vehicle Equipment 676,400 450,933 35,813 451,645 712 46,302 492,982 (41,337) -8% Supplies & Services Sub-Total 9,070,383 6,046,922 485,536 4,005,168 (2,041,754) 559,254 4,427,702 (422,534) -10% Total Operating Expenses 41,117,471 26,854,571 2,358,376 22,874,957 (3,979,614) 2,208,131 21,561,152 1,313,805 6% Expenses (Non-Operating): Interest on Long Term Debt 2,604,419 1,736,279 182,523 1,478,046 (258,233) 192,344 1,463,732 14,314 1% Other Expense 12,325 8,217 5,459 19,002 10,785 (3,477) 384,992 (365,990) -95% Total Non-Operating Expenses: 2,616,744 1,744,496 187,982 1,497,048 (247,448) 188,867 1,848,724 (351,676) -19% Total Expenses 43,734,215 28,599,067 2,546,358 24,372,005 (4,227,062) 2,396,998 23,409,876 962,129 4% Net Position Before Capital Contributions 7,563,422 5,107,571 295,261 8,414,149 3,306,578 387,673 5,419,337 2,994,812 55% Capital Contributions (Non-Cash Transaction - - - 192,225 402,460 402,460 24,609,744 25,050,300 (24,647,840) -98% GASB 34 Compliant) Net Position Before Depreciation 7,563,422 5,107,571 487,486 8,816,609 3,709,038 24,997,417 30,469,637 (21,653,028) -71% Depreciation & Amortization 7,690,000 5,126,667 631,233 5,065,736 (60,931) 637,188 4,974,842 90,894 2% Total Net Position (126,578)$ (19,096)$ (143,747)$ 3,750,873$ 3,769,969$ 24,360,229$ 25,494,795$ (21,743,922)$ -85% Yorba Linda Water District Water Fund For Period Ending February 29, 2024 (With February 28, 2023 for comparison purposes) Page 47 of 171 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 1,973,000 931,394 714,271 $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 Series9 Page 48 of 171 Annual YTD Feb YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Feb Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Feb 2023) PY Actual $ PY Actual % Revenue (Operating): Sewer Charge Revenue 3,582,947$ 2,388,631$ 296,531$ 2,367,521$ (21,110)$ 257,004$ 2,051,474$ 316,047$ 15.41% Locke Ranch Assessments 410,497 233,983 223 239,253 5,270 1 210,955 28,298 13.41% Other Operating Revenue 74,230 49,487 12,702 86,220 36,733 1,374 79,569 6,651 8.36% Total Operating Revenue: 4,067,674 2,672,101 309,456 2,692,994 20,893 258,379 2,341,998 350,996 14.99% Revenue (Non-Operating): Interest 168,000 112,000 14,403 257,880 145,880 9,654 107,899 149,981 139.00% Other Non-Operating Revenue 16,635 11,090 7,782 22,150 11,060 (2,384) 74,612 (52,462) -70.31% Total Non-Operating Revenue: 184,635 123,090 22,185 280,030 156,940 7,270 182,511 97,519 53.43% Total Revenue 4,252,309 2,795,191 331,641 2,973,024 177,833 265,649 2,524,509 448,515 17.77% Expenses (Operating): Salary Related Expenses 2,220,753 1,366,617 209,091 1,197,877 (168,740) 132,283 1,132,288 65,589 5.79% Supplies & Services: Communications 30,236 20,157 2,476 16,425 (3,732) 2,110 14,243 2,182 15.32% Contractual Services 87,379 58,253 5,774 48,753 (9,500) 6,046 51,800 (3,047) -5.88% Data Processing 76,418 50,945 4,610 36,473 (14,472) 4,287 36,431 42 0.12% Dues & Memberships 18,792 12,528 634 11,521 (1,007) 348 11,493 28 0.24% Fees & Permits 54,447 36,298 2,797 30,862 (5,436) 3,638 33,929 (3,067) -9.04% Board Election - - - - - - - - 0.00% Insurance 72,750 48,500 6,052 46,753 (1,747) 4,779 35,944 10,809 30.07% Materials 84,955 56,637 22,606 64,251 7,614 12,849 55,762 8,489 15.22% District Activities, Emp Recognition 10,272 6,848 412 3,232 (3,616) 216 4,140 (908) -21.93% Maintenance 576,545 384,363 7,364 144,420 (239,943) 15,760 140,413 4,007 2.85% Non-Capital Equipment 74,815 49,877 8,697 42,122 (7,755) 1,006 50,634 (8,512) -16.81% Office Expense 7,132 4,755 725 4,246 (509) 452 3,927 319 8.12% Professional Services 152,637 101,758 9,875 85,885 (15,873) 11,089 91,517 (5,632) -6.15% Training 13,497 8,998 690 8,215 (783) 657 10,057 (1,842) -18.32% Travel & Conferences 18,258 12,172 855 8,164 (4,008) 184 2,787 5,377 192.93% Uncollectible Accounts 2,250 1,500 821 2,015 515 517 4,088 (2,073) -50.71% Utilities 60,000 40,000 1,892 20,154 (19,846) 5,484 17,184 2,970 17.28% Vehicle Equipment 79,000 52,667 4,868 48,611 (4,056) 23,876 61,534 (12,923) -21.00% Supplies & Services Sub-Total 1,419,383 946,255 81,148 622,102 (324,153) 93,298 625,883 (3,781) -0.60% Total Operating Expenses 3,640,136 2,312,873 290,239 1,819,979 (492,894) 225,581 1,758,171 61,808 3.52% Expenses (Non-Operating): Other Expense 6,300 4,200 - 5,972 1,772 - 3,277 2,695 82.24% Total Non-Operating Expenses: 6,300 4,200 - 5,972 1,772 - 3,277 2,695 1 Total Expenses 3,646,436 2,317,073 290,239 1,825,951 (491,122) 225,581 1,761,448 64,503 3.66% Net Position Before Capital Contributions 605,873 478,119 41,402 1,147,073 668,954 40,068 763,061 384,012 50.33% Capital Contributions (Non-Cash Transaction - - - 311,144 546,200 546,200 62,772 416,136 130,064 416,136 GASB 34 Compliant) Net Position Before Depreciation 605,873 478,119 352,546 1,693,273 1,215,154 102,840 1,179,197 514,076 43.60% Depreciation & Amortization 1,689,000 1,126,000 125,660 1,003,252 (122,748) 125,034 1,013,209 (9,957) -0.98% Total Net Position (1,083,127)$ (647,881)$ 226,886$ 690,021$ 1,337,902$ (22,194)$ 165,988$ 524,033$ -315.71% Yorba Linda Water District Sewer Fund For Period Ending February 29, 2024 (With February 28, 2023 for comparison purposes) Page 49 of 171 ITEM NO. 9.4. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Cash and Investment Report for the Period Ending February 29, 2024 RECOMMENDATION: That the Board of Directors receive and file the Cash and Investment Report for the Period Ended February 29, 2024. BACKGROUND: Government Code Section 530607, et. seq., requires the person delegated to invest funds to make a monthly report of investments to the legislative body. 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 February 29, 2024 is 5.04% The District's Total Cash and Investment balance as of February 29, 2024 resulted in an overall net decrease from that of January 31, 2024 by approximately $697,000. This decrease is predominantly due to a draw in the amount of approximately $546,000 from the Revenue Bond, Series 2022A Requisition Account at US Bank to fund construction costs for infrastructure improvements to the District’s water system. ATTACHMENTS: 1. Cash and Investment Reports and Graphs - February 2024 Page 50 of 171 Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 2,070,383$ 2,070,383$ Wells Fargo Bank 2,070,383$ 2,070,383$ 3.27% Total 0.00% Depository Account 550,130$ 550,130 US Bank Depository Account (Lennar - Cielo Vista Dev)2.39% 550,130$ 550,130$ 0.87% 2.39% Money Market Accounts: 2,133,572$ 2,133,572$ US Bank (2017A & 2022A Revenue Bonds) 3.32% 4,589,802 4,589,802 US Bank (Money Market) 5.03% 1,311,052 1,311,052 Public Agency Retirement Svcs. (PARS) 5.91% 8,034,426$ 8,034,426$ 12.69% Total 5.64% California Asset Mgmt. Program Term Investments: 20,000,000$ 20,000,000$ CAMP (Investment Fund) 5.78% 20,000,000$ 20,000,000$ 31.58% 5.78% US Treasury Notes 750,546 755,000 US Treasury Note 3/31/2024 5.32% 786,848 800,000 US Treasury Note 7/31/2024 5.21% 785,216 800,000 US Treasury Note 8/31/2024 5.18% 796,064 800,000 US Treasury Note 9/30/2024 5.10% 796,816 800,000 US Treasury Note 10/31/2024 5.06% 807,311 810,000 US Treasury Note 11/30/2024 5.01% 806,015 810,000 US Treasury Note 12/31/2024 4.97% 810,224 815,000 US Treasury Note 1/31/2025 4.90% 809,465 810,000 US Treasury Note 2/28/2025 4.84% 803,261 810,000 US Treasury Note 3/31/2025 4.78% 768,994 785,000 US Treasury Note 4/30/2025 4.73% 8,720,759$ 8,795,000$ 13.77% Total 5.01% Pooled Investment Accounts: 11,721,767$ 11,721,767$ Local Agency Investment Fund 4.12% 12,235,078 12,235,078 CAMP (Liquidity Fund) 5.50% 23,956,845$ 23,956,845$ 37.83% 4.83% 63,332,542$ 63,406,783$ 100% Total Investments 5.04% 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. 2/29/24 Yorba Linda Water District Cash & Investment Portfolio Report February 29, 2024 ________________________________ Delia Lugo, Finance Manager Page 51 of 171 Checking Account:2,070,383$ 3.27% Money Market Accounts:8,034,426$ 12.69% US Treasury Notes:8,720,759$ 13.77% CAMP Term Investments:20,000,000$ 31.58% Pooled Investment Accounts:23,956,845$ 37.83% Depository Account 550,130$ 0.87% Total 63,332,542$ 100.00% Checking Account: 3.27% Money Market Accounts: 12.69% US Treasury Note 13.77% CAMP Term Investments: 31.58% Pooled Investment Accounts: 37.83% Depository Account 0.87% INVESTMENT BY CATEGORY BALANCES (AS OF 2‐29‐2024) Checking Account: Money Market Accounts: US Treasury Notes: CAMP Term Investments: Pooled Investment Accounts: Depository Account Page 52 of 171 Below is a chart summarizing the yields as well as terms and maturities for the month of February 2024: Average # of Month Portfolio Days to of 2024 Yield Maturity February 5.04% 1 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 2/28/2023 2/29/20024 Monthly - February 42,944$ 71,385$ Year-to-Date 542,696$ 1,217,191$ Budget 2022/2023 2023/2024 Interest Budget, February YTD 71,283$ 663,200$ 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 $63.3 million which is allocated between the established reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for current Bond transaction and PARS for the pension/OPEB transactions. The estimated number of Days in Cash, based on the preliminary unaudited statements, are 353 for the Un-Restricted Water Reserve and 843 for the Un-Restricted Sewer Reserve balances, as of February 29, 2024. January 2024 % Alloc February 2024 % Alloc Fund Description Balance 1/31/2024 Balance 2/29/2024 Water Operating Reserve 20,684,946$ 46.00% 20,735,780$ 42.71% Water Emergency Reserve 7,638,691 16.70% 7,639,776 15.74% Water Capital Project Reserve 6,915,296 8.59% 6,915,405 14.24% MWD Contingency Reserve - 0.00% - 0.00% Rate Stabilization Reserve 4,448,439 9.69% 4,453,672 9.17% Un-Restricted Water Reserve Balance 39,687,372$ 39,744,632$ Conservation Reserve 73,801$ 0.16% 73,801$ 0.15% Employee Liability Reserve 322,492 0.71% 322,494 0.66% Restricted Reserve Balance 396,293$ 396,295$ Sewer Operating Reserve 2,686,879$ 8.63% 2,693,088$ 5.55% Sewer Emergency Reserve 2,092,600 4.52% 2,101,348 4.33% Sewer Capital Project Reserve 3,611,283 5.00% 3,611,283 7.44% Un-Restricted Sewer Reserve Balance 8,390,763$ 8,405,720$ Total Reserve Balances 48,474,428$ 100.00% 48,546,647$ 100.00% Water Operating 1,702,424 1,483,609 Sewer Operating 639,229 586,774 2,341,653 2,070,383 Rev. Bond 2017A-Principal & Interest 884 887 Rev. Bond 2022A - Acquisition & COI 11,375,543 10,853,444 Depository Account - Lennar - Cielo Vista Dev 550,127 550,129 Public Agency Retirement Svc. -PARS (Restricted)1,287,615 1,311,052 Total Cash and Investments 64,030,249$ 63,332,542$ Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) YLWD Cash & Investment Summary Report Page 53 of 171 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 12/31/2023 Management Fees (386.73) (148.28) (40.05) (8.94)1,228,935.24 12/31/2023 Investment Gain/(Loss) 38,959.48 14,937.51 4,035.12 900.33 1,287,767.68 1/31/2024 Management Fees (411.25) (157.68) (42.59) (9.50)1,287,146.66 1/31/2024 Investment Gain/(Loss) 310.40 119.01 32.15 7.17 1,287,615.39 1,287,615.39 1,287,615.39 1,287,615.39 1,287,615.39 1,287,615.39 1,287,615.39 1,287,615.39 1,287,615.39 1,287,615.39 1,287,615.39 Account Balance by Account Type 852,672.86 326,924.58 88,313.28 19,704.67 1,287,615.39$ 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 247,013.47$ 111,695.64 358,709.11 Total Management Fees from Inception (27,482.33)$ (14,468.51) (41,950.84) Balance as of 1/31/2024 940,986.14$ 346,629.25$ 1,287,615.39$ PARS (Public Agency Retirement Services) Funding Summary for January 31, 2024 Page 54 of 171 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) 12/21/23 Requistion #15 ‐ Reimburse District for eligible construction costs ($1,196,625) 01/30/24 Requistion #16 ‐ Reimburse District for eligible construction costs ($23,992) 02/23/24 Requistion #17 ‐ Reimburse District for eligible construction costs ($545,990) Available Balance of Target Spenddown as of February 29, 2024 $6,582,209 Yorba Linda Water District Financing Authority Revenue Bonds, Series 2022A Activity Summary as of February 29, 2024 $6,582,209 32% $14,035,601 68% 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 55 of 171 ITEM NO. 9.5. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer SUBJECT: Single Source Procurement for Well 19 Rehabilitation Phase 2 Project RECOMMENDATION: That the Board of Directors award the Construction Contract for Well 19 Rehabilitation Phase 2 to General Pump Company for $232,427, Job No. J-2023-44 FISCAL IMPACT: Budgeted: Yes Total Budget: $215,000.00 Cost Estimate: $232,427 Job No: J-2023-44 Engineer's Estimate: $165,000 The Engineer's Estimate was developed based on the total cost of rehabilitation of Well 20 in FY 22- 23, which was $155,337.52. This estimate was completed prior to receiving the Phase 1 evaluation of Well 19. The scope of work for Well 19 is more robust than the scope of work for Well 20. The contractor for both projects is General Pump Company. BACKGROUND: After completion of the PFAS treatment plant, the wells at District Headquarters have been negatively affected by changes in hydraulics. When wells located by the OCWD recharge basins are operating at the same time as wells at Headquarters, the capacities of the wells at Headquarters decrease. The District is systematically evaluating wells to identify improvements to restore capacity. In order to understand the scope of Phase 2 of the Well 19 Rehabilitation project, which is the subject of this agenda report, Staff will first describe Phase 1. WELL 19 REHABILITATION PHASE 1 The rehabilitation of Well 19 at District Headquarters is critical to ensuring water supply resiliency. Well No. 19 was not producing at its intended capacity due to hydraulic parameters which were not compatible with other wells. To resolve this issue, staff utilized one of the District's on-call consultants, Tetra Tech, to analyze the wells while they were operating simultaneously. Tetra Tech provided recommendations for Well 19 improvements. On November 1, 2023, Tetra Tech provided a Draft Request for Quotes (RFQ) for Well 19 Rehabilitation Phase 1. The scope of services for Phase 1 included, among other things, pulling the pump, assessment of the parts’ condition, and the preparation of a report. Page 56 of 171 On November 7, 2023, the District staff issued an RFQ to three contractors who have a good reputation and a history of working on the District's past projects; Best Drilling and Pump, General Pump Company, and Layne (a Granite Company). On November 15, 2023, staff received responses from Best Drilling and Pump, and General Pump Company. After a review of the quotes, staff noticed discrepancies in the assumptions of the quotes. After consultation with the District’s legal Counsel, staff rejected the quotes. Staff revised the RFQ to clarify the discrepancies that resulted in different assumptions by the contractors and re-issued the RFQ on November 16, 2023. On November 21, 2023, staff received one quote from General Pump Company. A construction contract with a not-to- exceed amount of $44,785.00 was executed with General Pump Company for Well 19 Rehabilitation Phase 1 and the project was completed on February 8, 2024, with a final invoice from General Pump Company in the amount of $26,100.00. WELL 19 REHABILITATION PHASE 2 On March 21, 2024, Tetra Tech provided the final RFQ for Well 19 Rehabilitation Phase 2. The scope of services for Phase 2 include, among other things, the installation of a new pump, replacement of the damaged parts, and dropping the pump setting from the existing 220 feet below ground surface to 240 feet below ground surface. Staff discussed the time-sensitivity of Phase 2 with executive management, and executive management recommended a Single Source Procurement with General Pump Company for Phase 2 of this project. At this same Board meeting, District Staff recommends the Board to adopt the District’s proposed revised Purchasing Policy in which the Policy was revised to, among other things, revise the definition of “Single Source Purchase”. Under this revised definition, subsection (d) in Section 3.23 of the District’s Purchasing Policy authorizes District staff to procure a Contract “when it is in the best interest of the District either (i) to extend or renew a Contract from a previous contract period, based on satisfactory service, reasonable prices, avoidance of start-up costs, avoidance of interruptions to District business, or good business practices; or (ii) to initiate a new Contract based on satisfactory service, reasonable prices, avoidance of start-up costs and/or interruptions to District business, and/or for good business practices.” Consistent with this revised definition of Single Source Purchase, Staff recommends Single Source procurement for the following reasons: 1. It is critical to rehabilitate Well 19 as soon as possible. 2. The reputable contractors for this type of project have been unresponsive lately. For example, staff recently issued an RFQ to three contractors for Well No. 5 and received only one response. 3. General Pump Company completed Phase 1 of this project and completed the work under budget. In addition, General Pump Company is the sole contractor that responded to a recent RFQ for Well 5 and has been the most responsive and reasonable contractor for our well projects in the past two years. 4. The limited time left before the high-demand season, makes it critical to expedite the start of this project. Based on the foregoing, Staff sent the RFQ to General Pump Company on March 21, 2024, and received a quote in the amount of $221,358.97 on March 29, 2024. Staff added a 5% contingency for the quoted amount to facilitate pump procurement from an alternative manufacturer if there is a long lead time in the procurement of the selected pump. The total project amount is $232,427. Page 57 of 171 PRIOR RELEVANT BOARD ACTION: On March 14, 2024, the Board approved filing the CEQA Notice of Exemption for this project. REVIEWED BY GENERAL COUNSEL: Yes STRATEGIC PLAN INITIATIVES: 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 58 of 171 ITEM NO. 9.6. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager SUBJECT: December 2023 Water Master Plan Amendment RECOMMENDATION: That the Board of Directors receive and file the amended December 2023 Water Master Plan. BACKGROUND: A primary objective of the 2023 Water Master Plan Update (Master Plan) was to identify those Capital Improvement Program projects and District initiatives that would improve operational efficiency, maximize the utilization of groundwater, and improve performance of the distribution system. A detailed listing of recommended capital projects and a proposed 10-Year Capital Improvement Program (CIP) Budget are included in the Master Plan. This information has been used to develop the District's 5-year CIP budget for fiscal year 2024-2025 through fiscal year 2028-29. The 2023 Water Master Plan received and filed by the Board on September 7, 2023 has been amended to modify some of the recommended projects based on more recent water system information provided to the consultant. The updated projects will result in system efficiencies and cost reductions to meet the District's goals. Other modifications include changes to system data and clarifications. Due to the sensitive information regarding the District's critical infrastructure in the District’s Master Plan, the entire amended Master Plan is not included with the agenda packet and is exempt from disclosure under the Public Records Act and the District's 2019 Resolution Regarding Disclosure of Critical Infrastructure Information. The amended December 2023 Water Master Plan Executive Summary is attached. FISCAL IMPACT: Budgeted: Yes Water Master Plan Budget: $374,663 Cost: $374,663 Job No: J-2021-32 PRIOR RELEVANT BOARD ACTION: At the June 14, 2022 Board of Directors meeting, the Board approved a Professional Services Page 59 of 171 Agreement with MKN & Associates to prepare the Hydraulic Model and Water Master Plan. On September 7, 2023, the Board of Directors approved the September 2023 Water Master Plan. STRATEGIC PLAN INITIATIVES: G.1: Safe & Reliable Water and Sewer Service; G.3: Operational Effectiveness. ATTACHMENTS: 1. Dec 2023 Amended WMP Executive Summary 2. Dec 2023 Amended WMP Executive Summary - TRACK CHANGES Page 60 of 171 MKN | 16310 BAKE PARKWAY | IRVINE, CA 92618 | T 714.213.9758 WATER MASTER PLAN UPDATE Page 61 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY 25,000+ meter connections Serving City of Yorba Linda and portions of Placentia, Brea, Anaheim and unincorporated Orange County 14,000-acre service area District Overview Ê Evaluate Infrastructure Needs over 25 Year Planning Period Ê Economic Evaluation of Current Water Supply Ê Consider Impacts from Future Demands Ê Ensure System Redundancy Ê Operational Optimization Ê Deliver Capital Improvement Plan OBJECTIVESIntroduction and Overview Yorba Linda Water District (District) is an independent special district providing water and sewer services to residents and businesses. It was established in 1909 as the Yorba Linda Water Company. In 1959, it became the Yorba Linda County Water District through a resident vote. The service area initially covered 4,710 acres and served 1,412 connections. Over time, the District expanded due to annexations and transitioned into a suburban community. In November 1985, the Board of Directors, seeking a more accurate identification as an independent special district, dropped the “County” designation, thus officially changing the District’s name to Yorba Linda Water District. The District has conducted various planning efforts, including a Water Facilities Master Plan in 1978, Water Master Plan in 2005, and an Asset Management Plan in 2018. These plans provided valuable input into the expansion, operation, maintenance, and financial planning of the District water system.. In 2022, the District retained Michael K. Nunley (MKN) to prepare a comprehensive update to the Water Master Plan (Master Plan). The Master Plan includes the following major focus areas: Ê Introduction and Overview Ê Land Use, Population and Future Growth Ê Existing and Projected Water Demands Ê Water Supply Optimization Ê Distribution System Overview Ê Water System Evaluation Ê Operational Analysis Ê Capital Improvement Plan Page 62 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY Existing and Future Water Demands Based on the District’s production and consumption reports, as well as SCADA information, existing water demand conditions were established as follows: year- ly average day demand of 19,867 AFY or 17.7 MGD, maximum day demand of 24.1 MGD, and a peak hour demand of 45.2 MGD. MKN reviewed data from the 2020 Census, 2020 Urban Water Master Plan (UWMP), and 2021-2029 City of Yorba Linda Housing Element Cycle. Based on an evaluation of the service area population, major planned developments, limited infill development, and Accessory Dwelling Units (ADUs) a future population of 78,419 was estimated within the District service area for the year 2045. This is an increase of 3.7% in service area population. MKN developed future per capita water demand factors based on predicted water use efficiency improvements from the District’s 2020 UWMP. These factors were applied to future population projections based on future development types. This established future water demand conditions. Overall, an approximately 8.1% increase in annual water demand is predicted within the District service area through 2045. Existing Customer Land Uses (Acres) Anticipated Growth by Type (AFY) Annual Demand 19,867 AFY Existing (93%) CCI (3%) Infill (3%) PD (1%) ADUs (<1%) Existing Water Demands Commercial, Industrial, Institutional 694 Limited Infill Development 605 Major Planned Development 222 Accessory Dwelling Units (ADUs) 85 Annual Demand 21,474 AFY Future Water Demands Page 63 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY Hydraulic Analysis The District’s existing hydraulic model was converted into Bentley WaterCAD, current infrastructure updated, operational settings updated, and the model validated for accuracy. Within the hydraulic model, scenarios were developed and evaluated with a focus on the following performance areas: Ê Storage Ê Booster Pump Station (BPS) and Pressure Regulating Station (PRS) Capacity Ê Fire Flow Ê Water Age Ê System Optimization Based on the existing and future demand scenarios, the majority of the existing pressure zones are sufficient to meet the minimum pressure, maximum pressure, and velocity requirements as defined in the Master Plan. A total of 44 projects were identified to improve fire flow performance, and the following projects recommended to optimize the system: Ê Zone 2 PRS Consolidation (abandon 3 PRS) Ê Zone 2 to 3 BPS Increase (Yorba Linda / Lakeview) Ê Eliminate Use of Seasonal Valves Ê Zone 3B / 4D Redundancy Ê Fairmont BPS Piping Improvements Ê Savi Ranch PRS MKN also modeled system-wide water age for existing demand conditions and verified facility operation using SCADA information. The District operates the water system in two modes of operation: low demand conditions (winter) delivering groundwater supplies only and high demand conditions (summer) delivering groundwater and imported water supplies. The water age analysis evaluated the system under these two conditions and found that during low demand conditions that various deadend water mains and the easterly pressure zones experience the highest water age. During high demand conditions with introduction of imported water supplies. Water age reduces significantly and the highest water age is limited to various deadend water mains. 25 MGD WTP 20 Pressure Zones 10 Groundwater Wells 14 Reservoirs 4 Imported Water Connections 12 Booster Pump Stations FINDINGS Ê Existing groundwater and imported water supplies are sufficient to serve existing and future demands, but im- provements required for redundancy Ê Additional storage required for zones served by Lakeview and Chino Hills Reservoirs Ê Increased flow capacity recommend- ed at Box Canyon BPS Page 64 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY Water Supply Optimization As part of the Master Plan, MKN conducted an analysis for optimizing the District’s primary water sources and to assess the feasibility of increasing groundwater production from the Orange County Groundwater Basin (OC Basin) in order to meet the Orange County Water District’s (OCWD) basin pro- duction percentage (BPP) target of 85%. The ob- jective was to determine the potential for achieving higher groundwater utilization percentages, namely 85%, 90%, and 100%. This comprehensive analysis considered historical and future supply availability, demand, physical and regulatory constraints, operational strategies, required capital improvements, and associated costs for each utilization scenario. The total cost of improvements to reliably achieve 85% groundwater utilization is estimated at $14.7M and would achieve a payback of 13 years. MKN’s evaluation focused on four key areas for meeting increased groundwater production Modifying supply delivery to maximize groundwater production in winter months will assist in meeting 85% groundwater productionA recommendation for achieving 85% utilization is provided which includes the following modifications: Ê Modify System Operations Ê Construct Well 23 and One Additional Well Ê Yorba Linda BPS Upgrade Ê BPS Chlorine Injection Systems and MOV Upgrades Ê Well Hydraulic Improvements Page 65 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY Capital Improvement Plan Based on the evaluations and findings of the Master Plan effort and the District’s existing Asset Management Plan, the CIP was prepared. The cost estimating approach assumed fully inclusive capitalization with costs derived from similar water utility projects adjusting for inflation, size, complexity, and location. Project prioritization was based on the following: Ê Improves Groundwater Optimization (BPP) Ê Enhances Fire Flow Reliability Ê Improves System Redundancy Ê Implements Asset Management Plan Recommendations Ê Improves System Pressures Ê Project Located Within Fire Hazard Zone Ê Number of Water Services Impacted Based on coordination with District engineering and operations staff, the recommended projects were identified. The proposed CIP allocates funds in proportions of 11% for Optimization Proj- ects, 25% for BPP Improvement Projects, 26% for Fire Flow Improvement Projects, and 38% for Condition-Based Projects over the next 10-year budgeting period. An annual breakdown and specific project sheets were created for each project. Implementing the CIP projects as suggested in the Master Plan plan enables the District to achieve 85% groundwater utilization reliably at the completion of FY 2026/27. CIP SUMMARY Ê 71 Projects Identified Ê 4 Categories of Projects Ê 10 Year Delivery Schedule Ê $144.5 million Total CIP Cost Ê $14-$15 million Average Annual CIP Total CIP Fire Flow Improvement (26%) $36.9M Optimization (11%) $16.2M Condition- Based (38%) $54.7M BPP & Related Projects (25%) $36.6M Page 66 of 171 UT UT UT UT UT UT UT UT UT UT UT UT UT UT UT UT UT UT UT UT [Ú[Ú [Ú[Ú[Ú[Ú[Ú [Ú[Ú[Ú [Ú[Ú[Ú [Ú[Ú[Ú[Ú [Ú[Ú[Ú[Ú [Ú[Ú[Ú[Ú [Ú[Ú[Ú[Ú[Ú[Ú[Ú[Ú [Ú[Ú[Ú[Ú[Ú[Ú [Ú[Ú[Ú[Ú [Ú[Ú[Ú [Ú[Ú[Ú[Ú[Ú[Ú &É &É &É &É&É &É &É &É &É &É &É &É &É &É &É &É &É &É&É &É &É &É &É &É&É &É &É &É &É &É &É &É &É &É &É &É &É &É&É&É&É &É &É &É &É &É &É &É &É &É &É &É &É &É &É&É &É &É &É &É &É &É &É&É &É &É &É &É&É &É &É &É &É &É&É &É&É&É&É &É&É &É &É&É &É&É &É&É &É&É &É&É &É&É &É &É&É &É UT UT UT UT UT 3Ú 3Ú 3Ú 3Ú 3Ú 3Ú 3Ú 3Ú &É &É &É &É &É &É JEFFERSON ST E S P E RANZARD I M P E R I A L H W Y SA NTAANA C A N Y O N R D GOLDEN AVE W E I R CANYO NRD FAI R M O N T BLVD RO Y A L O A K R D TUSTIN A V E YORBA L I N D A B L V D L A M B E RT RD LA KEVIEW AVE VALLEY VIEW AVE RI C H F I E L D R D ALTA VISTA ST C ARBO N C A N YO N R D C A N Y O NRIMRD OH I O S T MIRALOM A A V E N O HL R A N CH R D RO S E D R LA PALMA A V E A N A HEIMHI L L S R D BASTANCHURY RD KELLOGG DR O A K C A N YOND R S E R RAN O AVE ·|}þ91 S E R ENITY BUENA V I S TA AVE L A K E V I E W S T BIRCH ST LA PALMA A V E ·|}þ91 O Capital Improvement Project Locations 1 inch = 3,600 feet Yorba Linda Water District Water Master Plan Update Legend YLWD Service Area Existing Water System UT Existing Reservoir [Ú Existing BPS &É Existing PRS UT Reservoir BPP Imps UT Reservoir Condition Imps UT Reservoir Emergency Imps &É PRS Condition Imps &É PRS Optimization Imps 3Ú Pump Station BPP Imps 3Ú Pump Station Condition Imps 3Ú Pump Station Optimization Imps Emergency Pipeline Imps Pipeline Condition Imps Page 67 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY 25,000+ meter connections Serving City of Yorba Linda and portions of Placentia, Brea, Anaheim and unincorporated Orange County 14,000-acre service area District Overview Ê Evaluate Infrastructure Needs over 25 Year Planning Period Ê Economic Evaluation of Current Water Supply Ê Consider Impacts from Future Demands Ê Ensure System Redundancy Ê Operational Optimization Ê Deliver Capital Improvement Plan OBJECTIVESIntroduction and Overview Yorba Linda Water District (District) is an independent special dis- trict providing water and sewer services to residents and business- es. It was established in 1909 as the Yorba Linda Water Company. In 1959, it became the Yorba Linda County Water District through a resident vote. The service area initially covered 4,710 acres and served 1,412 connections. Over time, the District expanded due to annexations and transitioned into a suburban community. In November 1985, the Board of Directors, seeking a more accu- rate identification as an independent special district, dropped the “County” designation, thus officially changing the District’s name to Yorba Linda Water District. The District has conducted various planning efforts, including a Water Facilities Master Plan in 1978, Water Master Plan in 2005 , and an Asset Management Plan in 2018. These plans aimed to improve and operate the water system effectively, ensuring a safe and affordable water supply for customers. In 2022 the District retained Michael K. Nunley (MKN) to prepare a comprehensive update to the Water Master Plan (Master Plan). The Water Master Plan includes the following major focus areas: Ê Introduction and Overview Ê Land Use, Population and Future Growth Ê Existing and Projected Water Demands Ê Water Supply Optimization Ê Distribution System Overview Ê Water System Evaluation Ê Operational Analysis Ê Capital Improvement Plan Page 68 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY Existing and Future Water Demands Based on the District’s production and consumption reports, as well as SCADA information, existing water demand conditions were established as follows: year- ly average day demand of 19,867 AFY or 17.7 MGD, maximum day demand of 24.1 MGD, and a peak hour demand of 45.2 MGD. MKN reviewed data from the 2020 Census, 2020 Ur- ban Water Master Plan (UWMP), and 2021-2029 City of Yorba Linda Housing Element Cycle. Based on an evaluation of the service area population, major planned developments, limited infill development, and Accessory Dwelling Units (ADUs) a future population of 78,419 was estimated within the District service area for the year 2045. This is an increase of 3.7% in service area popu- lation. MKN developed future per capita water demand factors based on predicted water use efficiency improvements from the District’s 2020 UWMP. These factors were ap- plied to future population projections based on future de- velopment types. This established future water demand conditions. Overall, an approximately 8.1% increase in annual water demand is predicted within the District service area through 2045. Existing Customer Land Uses (Acres) Anticipated Growth by Type Annual Demand 19,867 AFY Existing (93%) CCI (3%) Infill (3%) PD (1%) ADUs (<1%) Existing Water Demands Commercial, Industrial, Institutional 694 Limited Infill Development 605 Major Planned Development 222 Accessory Dwelling Units (ADUs) 85 Annual Demand 21,474 AFY Future Water Demands Page 69 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY Hydraulic Analysis The District’s existing hydraulic model was converted into Bentley WaterCAD, current infrastructure updated, opera- tional settings updated, and the model validated for accuracy. Within the hydraulic model, scenarios were developed and evaluated with a focus on the following performance areas: Ê Storage Ê Booster Pump Station (BPS) and Pressure Regulating Station (PRS) Capacity Ê Fire Flow Ê Water Age Ê System Optimization Based on the existing and future demand scenarios, the majority of the existing pressure zones are sufficient to meet the minimum pressure, maximum pressure, and velocity requirements as defined in the Master Plan. A total of 44 projects were identified to improve fire flow performance, and the following projects recommended to optimize the system: Ê Zone 2 PRS Consolidation (abandon 3 PRS) Ê Zone 2 to 3 BPS Increase (Yorba Linda / Lakeview) Ê Eliminate Use of Seasonal Valves Ê Zone 3B / 4D Redundancy Ê Fairmont BPS Piping Improvements Ê Savi Ranch PRS MKN also modeled system-wide water age for existing de- mand conditions and verified facility operation using SCADA information. The District operates the water system in two modes of operation: low demand conditions (winter) deliv- ering groundwater supplies only and high demand conditions (summer) delivering groundwater and imported water supplies. The water age analysis evaluated the system under these two conditions and found that during low demand conditions that various deadend water mains and the easterly pressure zones experience the high- est water age. During high demand conditions with introduction of imported water supplies. Water age reduces significantly and the highest water age is limited to various deadend water mains. 25 MGD WTP 20 Pressure Zones 10 Groundwater Wells 14 Reservoirs 4 Imported Water Connections 12 Booster Pump Stations FINDINGS Ê Existing groundwater and imported water supplies are sufficient to serve existing and future demands, but im- provements required for redundancy Ê Additional storage required for zone served by Lakeview Ê Increased flow capacity recommend- ed at Box Canyon BPS Page 70 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY Water Supply Optimization As part of the Master Plan, MKN conducted an analysis for optimizing the District’s primary water sources and to assess the feasibility of increasing groundwater production from the Orange County Groundwater Basin (OC Basin) in order to meet the Orange County Water District’s (OCWD) basin production percentage (BPP) target of 85%. The objective was to determine the potential for achiev- ing higher groundwater utilization percentages, namely 85%, 90%, and 100%. This comprehen- sive analysis considered historical and future sup- ply availability, demand, physical and regulatory constraints, operational strategies, required capi- tal improvements, and associated costs for each utilization scenario. The total cost of improvements to reliably achieve 85% groundwater utilization is estimated at $36.6M. MKN’s evaluation focused on four key areas for meeting increased groundwater production Modifying supply delivery to maximize groundwater production in winter months will assist in meeting 85% groundwater productionA recommendation for achieving 85% is provided which includes the follow- ing modifications: Ê Modify System Operations Ê Construct Well 23 and One Addi- tional Well Ê Yorba Linda BPS Upgrade Ê BPS Chlorine Injection Systems and MOV Upgrades Ê Well Hydraulic Improvements Page 71 of 171 Yorba Linda Water District - Water Master Plan Update WATER MASTER PLAN UPDATEEXECUTIVE SUMMARY Capital Improvement Plan Based on the evaluations and findings of the Master Plan effort and the District’s existing Asset Management Plan, the CIP was prepared. The cost estimating approach assumed fully inclusive capitalization with costs de- rived from similar water utility projects adjusting for inflation, size, complexity, and location. Project prioritization was based on the following: Ê Improves Groundwater Optimization (BPP) Ê Enhances Fire Flow Reliability Ê Improves System Redundancy Ê Implements Asset Management Plan Recommendations Ê Improves System Pressures Ê Project Located Within Fire Hazard Zone Ê Number of Water Services Impacted Based on coordination with District engineering and operations staff, the recommended projects were identified. The proposed CIP allocates funds in proportions of 12% for Optimization Proj- ects, 28% for BPP Improvement Projects, 22% for Fire Flow Improvement Projects, and 40% for Condition-Based Projects over the next 10-year budgeting period. An annual breakdown and specific project sheets were created for each project. Implementing the CIP projects as suggested in the Master Plan plan enables the District to achieve 85% ground- water utilization reliably at the completion of FY 2026/27. CIP Fire Flow Improvement (22%) $31.1M Optimization (12%) $16.2M Condition- Based (40%) $55.3M BPP & Related Projects (28%) $36.6M CIP SUMMARY Ê 70 Projects Identified Ê 4 Categories of Projects Ê 10 Year Delivery Schedule Ê $139.3 million Total CIP Cost Ê $13-$15 million Average Annual CIP Total Page 72 of 171 ITEM NO. 9.7. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer SUBJECT: Commencement of Fiscal Year 2024-25 Capital Improvement Program Projects RECOMMENDATION: That the Board of Directors approve staff to proceed with the commencement of FY24-25 Capital Improvement Program Projects. BACKGROUND: District staff presented the attached 5-Year Capital Improvement Program for fiscal years 2024-2025 through 2028-2029 at the Board workshop on March 28, 2024. The selected projects were chosen based on the Board's priorities in the following order: 1) Fire Flow/Fire Hardening and Safety projects, 2) projects needed to meet 85% Basin Production Percentage (BPP), 3) Asset Management Plan (AMP) (existing assets) requiring rehabilitation/replacement, and 4) Optimization of system. District staff are requesting the Board's approval to immediately commence new projects included in Fiscal Year 2024-2025. Many of these are multiple-year projects. These critical projects will enable the District continue to provide reliable water and sewer services to our customers. ATTACHMENTS: 1. FY24-25 5-Year CIP - Sheet 1A Page 73 of 171 Revised 3/18/2024 4:45 pm SHEET 1A - Draft Projected Baseline CIP FY24-25 Through FY28-29 (Using Existing Rate Structure 9% Water, 15% Sewer Annual Increases through FY25-26) FUNDING CLASS PROJECT NAME FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 TOTAL FF/AMP Timber Ridge Booster Pump Station (BPS)372,000$ 372,000$ FF/AMP Waterline Projects 4,600,000$ 250,000$ 750,000$ 5,600,000$ BPP/AMP/O Well Rehabilitation (Wells No. 1, 18)420,000$ 420,000$ FF/BPP/AMP Santiago BPS Rehab. and Natural Gas Emergency Back Up Generator (Also see Pay-Go)200,000$ 1,000,000$ 100,000$ 1,300,000$ S/AMP/O PRS Replacement Program (Applecreek, Willowbrook, Stone Canyon, Paseo Del Prado, & Adobe)1,150,000$ 1,150,000$ Water (Bonds) Total 6,742,000$ 1,250,000$ 850,000$ -$ -$ 8,842,000$ FF/AMP Santiago BPS Rehab and Natural Gas Emergency Back Up Generator (Also see Bonds)700,000$ 700,000$ FF/AMP Waterline Projects 300,000$ 300,000$ 600,000$ BPP/AMP/O Well Rehabilitation (Wells No. 10, 21 and 12)420,000$ 200,000$ 620,000$ BPP/AMP Yorba Linda Booster Pump Station Rehab. and Natural Gas Emergency Back Up Generator 150,000$ 650,000$ 500,000$ 1,300,000$ BPP/AMP Lakeview Booster Pump Station Rehab. and Natural Gas Emergency Back Up Generator 150,000$ 500,000$ 650,000$ BPP/O Little Canyon Reservoir Motor Operated Valve (MOV)225,000$ 225,000$ BPP/O Well VFD Upgrades (Wells No. 20, 21, 22)70,000$ 580,000$ 325,000$ 975,000$ BPP Well 23 Drilling & Equipping (Offsite well)424,500$ 897,700$ 2,127,800$ 6,703,000$ 10,153,000$ AMP Fairmont Reservoir Rehabilitation 390,000$ 650,000$ 1,040,000$ O Golden Avenue Waterline - Pending City of Placentia Schedule 308,000$ 308,000$ Water (Pay-Go) Total 768,000$ 2,299,500$ 2,272,700$ 3,227,800$ 8,003,000$ 16,571,000$ Water (Bonds & Pay-Go) Total 7,510,000$ 3,549,500$ 3,122,700$ 3,227,800$ 8,003,000$ 25,413,000$ AMP/O Buena Vista Sewer Main Improvements -$ -$ 1,130,500$ 1,130,500$ 2,261,000$ AMP/O Kellogg Dr Sewer Main Upsize 822,000$ 2,874,000$ 330,000$ -$ 4,026,000$ AMP/O FY25-26 Sewer CIPP Rehabilitation Project 400,000$ 400,000$ AMP/O FY27-28 Sewer CIPP Rehabilitation Project 500,000$ 500,000$ Green Crest Sewer Lift Station (Pay-Go)700,000$ 700,000$ *Green Crest Sewer Lift Station (Grant)300,000$ 300,000$ Sewer (Pay-Go Only) Total 700,000$ 1,222,000$ 2,874,000$ 1,960,500$ 1,130,500$ 7,887,000$ Sewer (Grants* Only) Total 300,000$ -$ -$ -$ -$ 300,000$ Sewer (Pay-Go & Grants*) Total 1,000,000$ 1,222,000$ 2,874,000$ 1,960,500$ 1,130,500$ 8,187,000$ TOTAL WATER AND SEWER CIP EXCLUDING GRANT ALLOCATION 8,210,000$ 4,771,500$ 5,996,700$ 5,188,300$ 9,133,500$ 33,300,000$ Priority 1 FF, S Fire Flow/Fire Hardening, Safety Priority 3 AMP Asset Management Plan Priority 2 BPP Basin Production Percentage (Maximize groundwater to reliably achieve 85% BPP)Priority 4 O Optimization Note: CIP does not include Green Crest Drive and Highland Reservoir Access Road Improvements WATER Bonds Pay-Go Pay-Go WATER SEWER S/AMP/O Page 74 of 171 ITEM NO. 9.8. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Doug Davert, Assistant General Manager Rosanne P. Weston, Engineering Manager SUBJECT: Moratorium on New Leases, Encumbrances, and Encroachments on District Real Property RECOMMENDATION: That the Board of Directors enact a moratorium on new leases, encumbrances, and encroachments on District real property. BACKGROUND: The District is party to multiple contracts with third parties, primarily antenna tower owners and telecommunications companies, which encumber or encroach on District water facilities. These lease contracts require that the district allow virtually unfettered and unmonitored access to what should be secure facilities key to the production of safe, clean drinking water for the District’s ratepayers. Originally, prior Boards and staff believed that the risks associated with these leases were outweighed by the potential revenue generation opportunity. Parties continue to contact the District seeking to further encumber and encroach upon District facilities in exchange for very modest rent payments. In recent years, new regulatory and other factors have emerged to cause water districts across the country to reevaluate their operations and focus on issues of site security, enhanced water treatment requirements to combat emerging contaminants, and other issues, all of which place new demands and constraints on water facilities. These new constraints necessarily affect the real estate assets of all water districts. The America’s Water Infrastructure Act of 2018 (AWIA) (which among other things made significant changes to the Safe Drinking Water Act (42 USC 330j et seq), presents new challenges to local water agencies related to system risk and resilience, including site security. The California Department of Drinking Water (DDW) is addressing, in a constantly evolving regulatory framework, the PFOA and PFOS contaminants as well as the emerging line of other PFAS contaminants. While the District has a handle on the PFOA/PFOS contaminants with the newly constructed treatment plant, the regulation of future contaminants may require additional treatment processes that will require the District to maximize its land holdings to accommodate new treatment facilities. Both state and federal authorities are also emphasizing site security to protect against “malevolent acts.” This necessarily includes restricting access for non-District personnel. Anecdotally, there have been several security breaches by people claiming to represent lessees on District properties, including facilities left Page 75 of 171 unlocked and personnel sleeping onsite who were not able to produce identification when approached by District staff. As the Board is keenly aware, the District is in the water and wastewater business and its primary purpose is the provision of safe, clean, reliable drinking water to its customers and ratepayers, while also safely collecting and transporting wastewater to appropriate treatment facilities. The leasing and encumbering of District real property and allowing encroachments thereon has presented a number of problems for the District including unauthorized expansion of facilities, security breaches, failure to maintain the facilities, and others. As such, the perceived financial benefits to the District may prove to be illusive or outweighed by the expenses that are charged against the revenue (legal, etc.), the security and safety risk associated with allowing non-District personnel with 24/7 access to District facilities, operational interference issues, and the potential need to maximize facilities in the future. On April 13, 2021, the Board adopted a Temporary Moratorium on Leases, Encumbrances, and Encroachments on District Real Property, which expired on October 13, 2022, and then extended the Temporary Moratorium through April 13, 2024. Over the past three or more years, the District has engaged in significant legal discussions with the two existing lessees, Crown Castle (at the Highland Reservoir site) and Verizon Wireless (at the Quarter Horse Reservoir site), regarding various issues ranging from expansion of the number of carriers and/or expansion of their physical footprint, to longstanding maintenance and security issues. Staff and counsel have largely been able to recoup the District's legal fees for these discussions thus far, but the future remains uncertain. The discussions were lengthy and several of the issues remain outstanding despite new contractual promises to remedy them. This results in significant staff time and expense for counsel to monitor and police the lessees. Under the current contracts, the District realizes $3,830 per month ($45,960.63 annually) from Crown Castle and $5,500 per month ($66,000 annually) from Verizon for a total of $111,963.63 in gross annual income. There are modest escalators in each contract. The proposed Moratorium would NOT affect the existing contracts and the above income stream will continue until the noted expiration dates. The existing leases have final expiration dates (assuming all options to extend are exercised) of December 31, 2037 (Crown Castle) and December 31, 2041 (Verizon Wireless). FISCAL IMPACT: Possible loss of nominal future rental income from potential leases; no effect on current rental income from leases; possible reduction in legal fees and staff time. STRATEGIC PLAN INITIATIVES: G1 3A - Maintain and update security and aesthetics (as needed) for facilities and digital resources. PRIOR RELEVANT BOARD ACTION: The Board previously adopted a Temporary Moratorium on Leases, Encumbrances, and Encroachments on District Real Property which was then extended through April 13, 2024. Page 76 of 171 ITEM NO. 9.9. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Bree Jozwiak, Administrative Assistant / Assistant Board Secretary SUBJECT: General Manager Renewal of Credentials RECOMMENDATION: That the Board of Directors approve the payment of fees for the General Manager to renew his credentials as a Board Certified Water Resources Engineer (BC.WRE). FISCAL IMPACT: Budgeted: Yes Cost Estimate: $250 BACKGROUND: Pursuant to section 4.9.2. of the Employment Agreement with the General Manager, Mr. Toy is requesting the Board of Directors pre-approval for payment of fees associated with renewing his credentials as a Board Certified Water Resources Engineer (BC.WRE) for a cost of $250. STRATEGIC PLAN INITIATIVE(S): G5 1A - Retain a highly skilled and capable workforce. Page 77 of 171 ITEM NO. 10.1. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Award of Contract for Legal Counsel Services STAFF RECOMMENDATION: That the Board of Directors select a firm to which the contract will be awarded. BACKGROUND: As described in the Board Policies and Procedure Manual, the District's legal counsel (and labor counsel if services are provided by a separate firm), are appointed by the Board and serve as the attorney(s) for the District. The Board previously issued a request for proposals and conducted interviews with the following firms for the provision of these services: Aleshire & Wynder Atkinson, Andelson, Loya, Ruud & Romo Kidman Gagen Law Richards Watson Gershon The purpose of this item is for the Board to select a firm to which the contract will be awarded. Once the Board has made a selection, a Professional Services Agreement will be drafted for Board review and approval at a subsequent meeting. Page 78 of 171 ITEM NO. 10.2. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Paige Appel, Budget Analyst SUBJECT: 2024 Strategic Plan RECOMMENDATION: That the Board of Directors review and adopt the 2024 Strategic Plan. BACKGROUND: Staff will present the final draft of the 2024 Strategic Plan. Staff is requesting the Board review and adopt the document if there are no further suggested revisions. If there are suggested revisions, staff requests the Board to adopt the document and staff will make the desired changes. ATTACHMENTS: 1. 2024 Strategic Plan - FINAL DRAFT Page 79 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 1 PFAS Treatment Plant Page 80 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 2 Introduction ..................................................................................................................... 3 GOAL 1: SAFE & RELIABLE WATER AND SEWER SERVICES ........................................ 6 Initiative 1: Water Supply ......................................................................................... 6 Initiative 2: Regulations/Legislation ........................................................................ 6 Initiative 3: System Reliability and Efficiency ......................................................... 6 Initiative 4: Security/Aesthetics ............................................................................... 6 Initiative 5: Services/Partnerships ............................................................................ 7 GOAL 2: FISCAL RESPONSIBILITY ................................................................................. 8 Initiative 1: Fiduciary Responsibility ......................................................................... 8 Initiative 2: Financial Transparency ........................................................................ 8 Initiative 3: Balanced Budget and Equitable Rates ............................................. 9 GOAL 3: OPERATIONAL EFFECTIVENESS .................................................................. 10 Initiative 1: Efficiency.............................................................................................. 10 Initiative 2: Sustainability ........................................................................................ 11 Initiative 3: Emergency Preparedness ................................................................. 11 GOAL 4: COMMUNITY PARTNERSHIPS ...................................................................... 12 Initiative 1: Brand Recognition .............................................................................. 12 Initiative 2: Public Awareness & Engagement .................................................... 12 Initiative 3: Local, State & Federal Engagements .............................................. 12 GOAL 5: WORKFORCE ENGAGEMENT .................................................................... 13 Initiative 1: People .................................................................................................. 13 Initiative 2: Training & Development .................................................................... 13 Initiative 3: Facilities & Equipment ........................................................................ 13 Page 81 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 3 Introduction The Yorba Linda Water District is an independent special district serving over 80,000 people with 26,000 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. The District is met with many challenges including uncertain State mandates/regulations, water supply and water quality issues, environmental pressures, regulatory mandates on conservation, infrastructure maintenance and upgrades, rising operational costs, and the ability to recruit and retain a high-performing workforce. This strategic plan serves as a roadmap for how the District will respond to these challenges and optimize the equitable use of water to continually adapt in changing environments. It reinforces our vision, mission, and guiding principles, as a special district committed to providing high-quality water and wastewater to our customers. Strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide an organization, what it does, and why. The Strategic Plan is created through a comprehensive process that includes the Directors, executive management, staff members, and the public. This results in the creation of a plan applicable to all positions within the organization, and to empower exceptional and effective public service. The plan will then 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. Yorba Linda Water District’s dedication to its customers, fiscal responsibility, reliable water, and workforce is clearly displayed within the goals incorporated in this strategic plan. Board of Directors Page 82 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 4 MISSION Yorba Linda Water District (YLWD) provides reliable water and sewer services to protect public health and the environment with financial integrity and superior customer service. VISION Yorba Linda Water District will accomplish our mission to improve the quality of life for those we serve by: Embracing proven technology, improving customer satisfaction, providing efficient and responsive operations, and ensuring reliable infrastructure, and assuring fiscal accuracy and transparency. CORE VALUES Page 83 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 5 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 and updated accordingly. The following five goals were identified as the District’s top priorities: Goal 1: Safe & Reliable Water and Sewer Services Goal 2: Fiscal Responsibility Goal 3: Operational Effectiveness Goal 4: Community Partnerships Goal 5: Workforce Engagement Page 84 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 6 GOAL 1: SAFE & RELIABLE WATER AND SEWER SERVICES The ultimate mission is to provide safe and reliable vital services to the public. Our goal is to operate and maintain all water and wastewater assets for reliable delivery of District services. Effective management of assets involves monitoring the condition of assets and associated risks of failure, planning for future needs, and anticipating uncertainties or changing levels of service. Initiative 1: Water Supply A. Evaluate ground water supplies by maximizing groundwater utilization and developing additional well sites and sources. B. Evaluate other water supplies by reviewing raw water usage with Municipal Water District, Orange County (MWDOC) and review/update interconnection agreements. Initiative 2: Regulations/Legislation A. Comply with all regulatory requirements (e.g. water quality, environmental, backflow). B. Monitor emerging water and wastewater legislation. C. Meet with lobbyists, representatives, and regulators at all levels (local/State/Federal). D. Take on leadership role with industry committees. Initiative 3: System Reliability and Efficiency A. Develop/Implement Capital Improvement Program (CIP). B. Utilize plans and tools to target infrastructure operations, maintenance, and upgrades. Initiative 4: Security/Aesthetics A. Develop District standards for public facing aesthetics. B. Identify and support the installation of backup systems, fire hardening, security, Cyber Security, and redundancy. Page 85 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 7 Initiative 5: Services/Partnerships A. Evaluate feasibility of providing additional water services within the region. B. Evaluate feasibility of providing additional wastewater services within the region (e.g. septic to sewer). PFAS Treatment Plant Page 86 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 8 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 holds paramount its duty to demonstrate effective and responsible use of public funds while responding to ever-increasing financial challenges such as inflation and rising costs of goods and services. Initiative 1: Fiduciary Responsibility A. Maintain Government Finance Officers Association (GFOA) Award Recognition for the Annual Comprehensive Financial Report (ACFR), Popular Annual Financial Report (PAFR), and Annual Operating Budget. B. Maintain Fitch and Standard & Poor’s bond rating of AA+ or higher. C. Annually evaluate and update as necessary, the District’s financial plan and policies to incorporate the District’s Water/Sewer Master Plans (WMP/SMP) and Asset Management Plan (AMP), and ensure that reserves and paydown of unfunded accrued liabilities (UAL) are adequately funded. D. Review existing service contracts as appropriate for cost efficiencies. E. Manage cash flow to maximize investment income. F. Ensure compliance with state and federal grant funding requirements. Initiative 2: Financial Transparency A. Provide all pertinent financial documents and policies on the District’s website. B. Maintain California Special District Association’s (CSDA) Certificate of Transparency to demonstrate the District’s commitment to operating in a transparent and ethical manner. Page 87 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 9 Initiative 3: Balanced Budget and Equitable Rates A. Perform cost of service analysis periodically and appropriately to ensure rates and charges are fair and equitable, including compliance with Proposition 218 requirements. B. Update rate models as part of the budget process and review and adopt an appropriate fee schedule annually. C. Develop an annual budget for Board approval for subsequent fiscal year. Page 88 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 10 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. 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. Initiative 1: Efficiency A. Optimize use of existing technologies (e.g. Computerized Maintenance Management System, SCADA, Meter Reading AMR). B. Explore non-traditional approaches to improve operational efficiencies, turbines, solar, rate evaluations for energy efficiency, TOU pumping. C. Evaluate tools and equipment that can improve work performance, safety, and efficiencies (Hydro Excavators, Pipe cutting equipment, Mechanics shop tools and large equipment, vehicle design). D. Continue to develop written departmental standard operating procedures. Marc Marcantonio Heli-Hydrant Page 89 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 11 Initiative 2: Sustainability A. Update Asset Management Plan, Water and Wastewater Master Plans as needed. B. Address the District’s future infrastructure needs. C. Maintain industry recommended maintenance programs for District assets. D. Evaluate and maintain sustainable operations. E. Comply with all local, state and federal Water and Wastewater Regulations. Initiative 3: Emergency Preparedness A. Perform semi-annual Emergency Operations Center exercises. B. Strengthen existing emergency operations. C. Establish an Emergency Preparedness team with District staff. Timber Ridge Booster Pump Page 90 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 12 GOAL 4: COMMUNITY PARTNERSHIPS 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. Host a YLWD Open House and/or infrastructure tours for our customers, community partners, and stakeholders to attend and learn about YLWD and the services we provide. C. Offer partnership opportunities for community events, water donations, giveaways, etc. D. Highlight YLWD on our social media platforms and website to humanize our organization and foster a stronger connection with our community. Initiative 2: Public Awareness & Engagement A. Frequently update the District website. B. Publish annual reports and infographics; include water usage, cost, reconciliation, investments, projects, etc. C. Utilize communication tools to promote YLWD services available using various methods to engage with more customers. D. Communicate District News and emerging water quality and sewer issues/regulations using various communication methods to engage with more customers. Initiative 3: Local, State & Federal Engagements A. Actively maintain and work with local, state and federal organizations on emerging issues. Page 91 of 171 Yorba Linda Water District | 2024 Strategic Plan Page | 13 GOAL 5: WORKFORCE ENGAGEMENT The District prides itself on a highly-skilled staff of professionals that produce superior quality work through consistent application of established core values. Our employees are the foundation for everything we do. Building on employee engagement is critical to future success, and the recruitment and retention of a high-performing workforce. By providing a positive, innovative work environment, a variety of training and development opportunities, and the best possible facilities and equipment, our employees will successfully accomplish our mission. Initiative 1: People A. Foster a positive, innovative organizational climate, recognizing the importance of employee health, wellness, and safety. B. Establish and maintain an effective performance management program. C. Recruit and retain a highly-skilled and capable workforce. Initiative 2: Training & Development A. Provide opportunities for training, cross-training and development at all levels of the organization, including leadership development, management and supervisor training. B. Provide mentorship and internship programs. C. Develop a comprehensive succession plan. Initiative 3: Facilities & Equipment A. Improve IT infrastructure for maximum efficiency, effectiveness, and security. B. Maintain and/or upgrade facilities, as needed, to provide functional, positive, and safe workspaces. C. Maintain and/or upgrade organizational equipment, as needed, to facilitate efficient and safe operations. Page 92 of 171 ITEM NO. 10.3. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Rosanne Weston, Engineering Manager SUBJECT: Amendments to Purchasing Policy RECOMMENDATION: That the Board of Directors adopt Resolution No. 2024-XX to amend the District’s Purchasing Policy (3010-007-POL) regarding (1) the definitions of Single Source and Sole Source Purchasing, (2) the exceptions to Board pre-authorization, and (3) other miscellaneous clarifying edits. SUMMARY: The Board of Directors instructed staff to amend the Purchasing Policy to address staff procurement without Board pre-authorization such as on an emergency basis. Staff recommends (1) revising Sections 3.23 and 3.24, and (2) adding Section 6.4 to the Purchasing Policy to address procurement without Board pre-authorization; and (3) approving the clarifying edits in Section 5 and 7. BACKGROUND: In response to Board comments on March 14, 2024, regarding staff recommendation that the Board ratify procurement of the construction services contract for the Well 5 Rehabilitation Project on an emergency basis, the Board of Directors instructed staff to review the District’s Purchasing Policy regarding procurement without Board pre-authorization such as procurement for emergency work or services. Accordingly, staff and District Counsel propose the attached revised Policy. The revisions are designed to authorize staff to procure supplies and materials and public works without Board pre- authorization under specific limited circumstances without characterizing the procurement as an Emergency. Specifically, staff revised the definition of Single Source in Section 3.23 and added a new Section 6.4, which authorizes staff to procure both Single Source and Sole Source contracts without Board pre-authorization. Notably, Section 6.4 requires staff to present such procurement at the next regularly scheduled Board meeting, which is consistent with the current definitions of Single Source and Sole Source. While reviewing the Policy, staff also made other clarifying revisions to Section 5 and 7 regarding (1) the exclusion of public works from Section 5 (Procurement Methods) since public works procurement is discussed in Section 7 and (2) the scope of professional services under Section 7 (Competitive Selection Process), which was expanded from just engineering services to all professional services. Page 93 of 171 In accordance with the attached proposed amendment to the District Purchasing policy, District staff concurrently agendized the Single Source procurement for Well 19 Rehabilitation Phase 2 Project. The agenda report for the Well 19 Single Source procurement provides the Board with a good example of how the amended Policy may be implemented by staff. PRIOR RELEVANT BOARD ACTION: The Purchasing Policy was last modified and approved by the Board of Directors on October 19, 2023. REVIEWED BY GENERAL COUNSEL: Yes ATTACHMENTS: 1. YLWD Purchasing Policy - 3010-007-POL (April 2024) - REDLINE 2. Resolution No. 2024-XX - Amending Purchasing Policy 3. YLWD Purchasing Policy - 3010-007-POL (April 2024) Page 94 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 1 of 27 PURCHASING Dept/Div: Finance Approved By: Resolution No. 2024-XX2023-16 Effective Date: April 11, 2024June 15, 2023 Amended By: Resolution No. 2023-29 Amended Date: October 19, 2023 Applicability: District Wide Supersedes: Resolution Nos. 2023-16, 2023-292022-16 See Also: N/A 1.0 General Policy 1.1 This Yorba Linda Water District Purchasing Policy (“Policy”) establishes policies and procedures for the District to (a) bid and purchase services, materials, equipment, and supplies (referred to collectively as “Services and/or Materials”), pursuant to Government Code Section 54201 et seq., and (b) bid and award Public Works projects. 1.2 This Policy establishes the Board of Directors’ (the “Board”) approved policies and procedures regarding the Procurement of Services and Materials and Public Works projects, including expenditure authorization and limits, competitive proposal and bidding requirements, and general Procurement procedures. All purchases of Services or Materials and Public Works projects to be paid by the District must adhere to the authority level and dollar limits of this Policy as set forth in Section 2.0, except as otherwise provided by specific terms and exceptions in this Policy. 2.0 Authorization 2.1 By adoption of this Policy, the Board is authorizing the General Manager and other designated representatives to exercise certain duties and responsibilities that are essential for the day-to-day operation of the District. 2.2 The General Manager may delegate the Procurement of Services and Materials and Public Works projects to those staff members given specific authority, consistent with the terms of this Policy. 2.3 Delegation of purchasing authority may be through the authorized use of Purchasing Cards, Purchase Orders, check requests, or other written authorization. All such purchases will be made in conformity with the policies and procedures prescribed within this Policy. 2.4 The Board-established Procurement limits and Contract signatory authorities are listed in Table 1 below. These limits are applicable on a per-expenditure/per-Contract basis, not on an aggregated basis, for unrelated activities. Page 95 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 2 of 27 Table 1 Procurement Limits and Contract Signatory Authority Title Expenditures Contract Signature Authority General Manager Up to $75,000 $75,001 and over with Board Authorization; up to $75,000 without Board Authorization. Assistant General Manager Up to $50,000 Up to $50,000 Department Managers Up to $25,000 Up to $25,000 Accounting Supervisor, Budget Analyst, Customer Service Billing Administrator, Principal Engineer, Public Affairs Officer, Records Management Administrator, Senior Engineer, Senior Executive Assistant, Senior IS Administrator, Superintendents Up to $5,000 None Administrative Personnel Up to $2,000 None 3.0 Definitions The terms referenced in this policy shall have the meanings as defined below: 3.1 Administrative Personnel – District administrative employees authorized by the General Manager to purchase miscellaneous items, food, and travel in support of District functions includes Executive Assistant, Human Resources Analyst, Operations Lead Staff, and any other administrative position as authorized by the General Manager. 3.2 Amendment – A written change or addition to a legal document which, when properly executed, has the same legal validity of the original document. 3.3 Board – The Board of Directors of Yorba Linda Water District. 3.4 Change Order – A written Amendment modifying the terms of an existing Contract or Purchase Order. 3.5 Consultant – Any person, firm, or entity that provides or offers to provide Professional Services to the District. 3.6 Contract - Written agreement authorizing a contractor, Consultant, supplier, or service provider to provide Services or Materials, or Public Works, in accordance with the material requirements, conditions, or scope of work stated in the Contract. 3.7 Contractor – Any person, firm, or entity that submits a bid, proposal, or Contract in connection with a procurement or service. This term also includes any person who conducts business as an agent or representative of the contractor. Page 96 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 3 of 27 3.8 District – Yorba Linda Water District. 3.9 Emergency – A situation in which unforeseen circumstances present an immediate risk of harm or hazard to real or personal property, the public health, safety, welfare, or District personnel or property, or threaten serious interruption of District operations. 3.10 General Manager – General Manager of the District or the person appointed by the Board to act in the capacity of the General Manager and authorized to administer this Policy on their behalf. 3.11 Invitation to Bid - A formal process for soliciting sealed bids from qualified prospective suppliers or Public Works Contractors. 3.12 Multiple Year Contract - A Contract for the purchase of Services, Materials, or Public Works for (a) a multiple year term or (b) that may contain provisions to extend performance by exercising optional renewal periods. A Multiple Year Contract does not obligate the District beyond the initial award period and shall not provide for a cancellation payment to the Contractor if options are not exercised 3.13 Non-Discretionary Purchases – Payments to utilities, temporary employment services, insurance providers, healthcare providers, and national, federal, state, or local agencies that relate to routine obligations and expenses essential to the District’s ability to provide service to customers and that have been approved in fiscal year operating or capital budgets. 3.14 Non-Professional Services – Services other than Professional Services, including, but not limited to, supply and maintenance services. 3.15 Procurement - The purchase or lease of Services or Materials, or Public Works. 3.16 Procurement Card - A form of charge card (also referred to as a P-Card or Purchasing Card) that allows for goods to be purchased without using a Purchase Order. Designated District staff are issued a US Bank Cal-Card for their use on miscellaneous purchases (refer to Section 5.3) of this Policy. 3.17 Professional Services – Any type of special service or advice in financial, economic, accounting, engineering, legal, or administrative matters by persons specially trained and experienced and competent to perform the special services required. (Gov’t Code § 53060.) Such services include but are not limited to architectural; engineering; environmental; financial; land surveying; construction management; audits; training services; legal services; preparation of planning or studies; SCADA integration; technology application development; and personnel, job classification, and benefit studies. 3.18 Public Works – As defined by California Public Code Section 22002, are public projects, which include construction, reconstruction, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. Maintenance work is not considered a public project for purposes of this definition. 3.19 Purchase Order (PO) – An authorization, under a standardized form in which the party designated as the “provider” is to provide Services and Materials for which the District agrees to pay. Page 97 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 4 of 27 3.20 Request for Proposal (RFP) - A solicitation used for the Procurement of Professional Services and Non-Professional Services. Prospective suppliers or Consultants submit proposals based on requested information and are evaluated/awarded based on pre-established criteria. 3.21 Request for Quotes (RFQ) - A solicitation used for Procurement of construction Services or Materials. 3.22 Requisition (REQ) - The procedural method by which departments may request a PO for the purchase of materials, supplies, or equipment. Requisitions are entered into the District’s ERP system application. 3.23 Single Source Purchase - Procurement where: (a) there is a compelling reason for only one source, a preferred brand, like material, homeland security goods, services, etc., to be procured; or (b) the commodity is unique, including, but not limited to, acquisition of data processing, telecommunications, and word processing equipment, goods and services; or (c) the purchase of a specific brand name, make or model is necessary to match existing District equipment or facilitate effective maintenance and support; or (d) when it is in the best interest of the District either (i) to extend or renew a Contract from a previous contract period, based on satisfactory service, reasonable prices, avoidance of start-up costs, avoidance of interruptions to District business, or good business practices; or (ii) to initiate a new Contract based on satisfactory service, reasonable prices, avoidance of to avoid start-up costs and/or interruptions to District business, and/or for good business practices. Such a Procurement of $25,000 or greater must be presented to the Board of Directors at the next regular scheduled meeting. 3.24 Sole Source Purchase - Procurement where only one viable source exists. This is usuallymay be due to legal restrictions of patent rights and copyrights, a proprietary process, warranty issues, original equipment, etc. Such a Procurement of $25,000 or greater must be presented to the Board at the next regular scheduled meeting. 4.0 General Procurement Policies 4.1 Procurement practices shall comply with laws, regulations, and guidelines of the State of California and any other applicable law and provisions of grant or funding contracts, if applicable. 4.2 Any employee/individual affecting any Procurement outside of the policies and procedures established by this Policy and without General Manager or Board authorization to do so, may be subject to disciplinary action and/or termination in accordance with District policies. 4.3 Expenditures and Contract awards must be authorized by the appropriate authorization level indicated in Table 1. 4.3.1 Separating or dividing Contracts into smaller components for the purpose of bringing the cost of one or more Contracts below any specified sum to avoid a requirement in any section of this Policy or any policy incorporated herein is strictly prohibited. Contracts may be divided only to meet unique scheduling of a project or to accommodate necessary time frames. In addition, no specifications shall be drafted in such a manner as to limit competitive bidding or solicitation directly or indirectly to any one specific vendor, or any specific brand, product, thing, or Page 98 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 5 of 27 service, except for those items that are approved as exempt from competitive bidding or solicitation requirements as provided in Section 7.1.3. 4.4 Purchase amounts include taxes and the cost of shipping, freight fees, and any other charges billed by the supplier or Contractor for purposes of the authorization limits under this Policy. 4.5 Purchase authorization and expenditure limits in Table 1, and competitive solicitation requirements in Table 2 and as further set forth in this Policy, are on a per purchase/per Contract basis and shall not be applied as an aggregate limit to any vendor, supplier, Contractor or Consultant. 4.6 With the exception of the General Manager, in the absence of an authorized signatory for a given request, authorization will be obtained from the next highest authority in Table 1. In the case where the next highest authority is absent, then authorization will be obtained by an authorized signatory in order of rank and availability. 4.7 The District may use electronic commerce whenever practicable or cost-effective. The District may accept electronic signatures and records in connection with the District Procurement, as permitted by applicable law. 5.0 Procurement Methods The following methods are available to initiate a purchase request or to pay for Services and Materials or Public Works: 5.1 Requisition/Purchase Order - Staff that require Services and Materials to carry out the defined duties of their positions shall submit Requisitions, in advance, for purchases in accordance with this Policy and other applicable procedures and policies of the District. Staff will generate a Purchase Order from the Requisition. 5.1.1 Complete the Requisition form or Requisition data entry screen to request that Services or Materials are ordered. 5.1.1.1 Allow at least two (2) working days of lead time. 5.1.1.2 Provide complete name and address of selected vendor. 5.1.1.3 Indicate the purpose of the Purchase Order. 5.1.1.4 Describe the Services or Materials clearly and specifically. Include make, model, manufacturer’s part number, catalog number, or vendor catalog page number, if available. Indicate color, size, or any option required. 5.1.1.5 Indicate the quantity and unit price for each Service or Material. 5.1.1.6 Note whether the Services or Materials are taxable. 5.1.1.7 Note any freight charges. 5.1.1.8 Must indicate a valid General Ledger account number(s), and correct projects number(s). Page 99 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 6 of 27 5.1.1.9 Indicate the date the Services or Materials are needed. 5.1.1.10 Attach any required price quotes and data that supports the requested purchase, if available. 5.1.1.11 Seek appropriate approvals as required in Table 1. 5.1.1.12 Purchases shall not be split to circumvent Contract signatory authorizations as set in Table 2. 5.1.1.13 Submit Purchase Order for processing. 5.1.2 Upon approval and receipt of a fully executed purchase Requisition, the Purchase Order will be systematically assigned the next consecutive number. 5.1.2.1 The original Purchase Order will be given back to the originator or sent to the vendor. 5.1.2.2 A copy of the approved Purchase Order, and any supporting documents, will be forwarded to Accounts Payable for processing. 5.1.2.3 A copy of the approved Purchase Order will be forwarded to the Warehouse pending receipt of goods. 5.1.2.4 An electronic record of the Requisition/Purchase Order will be kept within the purchasing system for historical purposes. 5.2 Check Request - A check request can be used to initiate payment for certain limited Services or Materials without a Purchase Order. Check requests can be used to request payment for Non-Discretionary Purchases, services rendered, subscriptions, membership dues, workshop/seminar/conference registrations, use of facilities, etc. 5.3 CAL-Card and Other Procurement Cards - Designated staff may be assigned a CAL-Card for miscellaneous purchases. Purchases using the CAL-Card are subject to the terms and conditions of the District Cardholder Procurement Card Agreement and any other applicable District procurement card policies or procedures. Professional Services are not to be acquired on CAL-Cards due to lack of insurance and indemnification language associated with these services. CAL-Card limits may be increased for a specific authorized user with the approval of the General Manager subject to the authorization limits as set in Table 1. Use of all other Procurement Cards are subject to the terms of this Policy and to any set terms provided at the time of card issuance to the designated staff and any subsequent Amendments to such terms, and other applicable District policies (Refer to Exhibit A). 5.4 Contracts - Provisions shall be made, either through specifications or procedures established by the District, for verification of the references and financial responsibility of the contracting parties prior to the award of a Contract. After award, all Contracts shall be executed on behalf of the District by the appropriate authorized signatory indicated in Table 1. In no case shall any Contract be made if sufficient funds are not budgeted and appropriated and not available to make payment promptly upon delivery or completion, or in accordance with a progress payment schedule, unless otherwise Page 100 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 7 of 27 authorized and approved by the Board or approved by the General Manager as provided for in Section 6.2 (Emergency). 5.4.1 Contracts for Non-Professional Services, and Professional Services, and Public Works shall be executed when an expenditure exceeds $5,000 (except in the event of an Emergency). 5.4.2 Multiple Year Contracts, such as On-Call or Multiple Award Task Order Contracts (MATOCs), are allowed when in the best interests of the District as determined, and executed by the General Manager. 5.4.2.1 For purposes of Procurement authorization, the dollar value of a Multiple Year Contract shall be the total Contract value, including optional renewal periods. Once initially approved in accordance with the Policy requirements, any optional renewals may then be authorized by the General Manager at the time of renewal, regardless of the dollar amount, provided the pre-priced option is consistent with the terms of the Contract as initially approved. 5.4.2.2 Multiple Year Contracts for Procurement of Professional Services and Non- Professional Services in amounts over $75,000 shall not exceed five (5) years in duration with up to two 5-year extension options unless the terms of the contract specifically and for good cause provide otherwise. At the expiration of the five (5) year period and any applicable extensions, the Multiple Year Contract shall be presented to the Board of Directors for consideration or shall comply with the Competitive Selection Process set forth in Section 7.0. 6.0 Exceptions to Pre-Authorization 6.1 Non-Discretionary Purchases - Non-Discretionary purchases Ddo not require Board approval for payment, including those that exceed the General Manager limit of $75,000. Purchase Orders are not required for Non-Discretionary Purchases that pertain to payments to utilities, insurance providers, health care providers, payroll, and national, federal, state, or local agencies that relate to routine obligations and expenses essential to the District’s ability to provide service to customers and that have been approved in fiscal year operating budgets. 6.2 Emergency Work/Services - The General Manager, Assistant General Manager, or the assigned Operations or Engineering Manager may authorize Emergency expenditures for work, Services, and/or Supplies where the cost exceeds $75,000 without prior Board approval. The Board shall be notified of any expenditures for Emergency work, Services and/or Supplies exceeding the General Manager’s authorization limit at the next regularly scheduled Board meeting. 6.3 Purchase Requests - Purchase requests Rr equire no prior authorization or signatory approval under Table 1 to replenish the District’s warehouse inventory within established inventory re-order levels. 6.36.4 Procurement by Single Source or Sole Source does not require Board approval for payment, including those that exceed the General Manager limit of $75,000. Any such Page 101 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 8 of 27 Procurement of $25,000 or greater must be presented to the Board of Directors at the next regularly scheduled meeting. 7.0 Competitive Selection Process 7.1 General - A competitive selection process for Procurement of Services and Materials, and for Public Works projects, is required in accordance with the limits as set forth in Table 2 below (subject to certain exceptions, qualifications, or limitations as further set forth below). Table 2 Competitive Solicitation Process - Requirements Purchase Amount Solicitation Requirement $25,000 and under One Quote $25,001 - $50,000 Two Quotes $50,001 - $75,000 Three Quotes $75,001 and over RFP or RFQ or Invitation to Bid Process Required 7.1.1 Competitive Solicitation - Submission 7.1.1.1 All quotes, bids, and proposals must be in writing. An email is acceptable for expenditures of $75,000 and under. 7.1.1.2 RFP, RFQ, and Invitation to Bid submissions must be in writing and be in substantial compliance with terms in the solicitation, or as otherwise required by law, or may be disqualified. 7.1.1.3 Quotes, bids, and proposal documentation shall be retained pursuant to the District’s record retention policy. 7.1.2 Exceptions from Competitive Solicitation Process - Generally, solicitation of bids or proposals is preferable whenever practicable. In addition to the exceptions stated under Section 7.3.2, the competitive solicitation requirements established in Table 2 may be waived when any of the following criterion is applicable: 7.1.2.1 Sole Source Purchases. 7.1.2.2 Single Source Purchases. 7.1.2.3 Emergency expenditures. 7.1.2.4 After a reasonable attempt has been made to obtain competitive quotes/ responses and it has been determined that (a) no additional suppliers/providers/Contractors/Consultants can be located; (b) the District has a lack of response from suppliers/providers/Contractors/Consultants to a competitive solicitation; Page 102 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 9 of 27 or, (c) when sufficient, satisfactory bids/proposals are not received, based on the District’s sole discretion. 7.1.2.5 Purchases to replenish the District’s warehouse inventory within established inventory re-order levels. 7.1.2.6 As provided by law. It shall be at the discretion of the General Manager or Assistant General Manager and the initiating Department Manager(s) to determine whether an expenditure meets a criterion listed herein to be exempt from a competitive solicitation, subject to any Board authorization. Such expenditures that meet a criterion will be presented to the Board of Directors at a publicly held meeting. 7.2 Public Works - Contracts for Public Works projects shall conform to applicable requirements for Public Works Contracts under State law, including but not limited to requirements relating to (a) listing of subcontractors, (b) posting of a payment bond in an amount not less than 100% of the total Contract amount for all Public Works Contracts over $25,000, and (c) payment of prevailing wages for all Contracts for Public Works exceeding $1,000 or as otherwise required by statute. Unless specifically waived by the District with the approval of the General Manager and District’s legal counsel, the District shall require performance bonds for all Public Works Contracts in an amount not less than 100% of the total Contract amount. Public Works Contracts let by an Invitation to Bid may be awarded (a) to the lowest responsive bid, responsible bidder, and/or (b) in accordance with (i) State law, (ii) the District’s standard Public Works Contract documents, and (iii) Section 11.0 below. 7.3 Professional Services (over $75,000) - RFPs will be initiated pursuant to the limits set forth in Table 2 when the Contract is anticipated to exceed $75,000, unless the District’s needs mandate uniquely qualified services, in which case only one proposal from a qualified firm may be solicited. Professional Services may be engaged in accordance with California Government Code §4525 et seq., and on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the District. 7.3.1 Professional Engineering Services - The District may request proposals for engineering services when the Contract amount is anticipated to exceed $25,000, and up to $75,000. For engineering services anticipated to exceed $75,000, RFPs will be initiated pursuant to the limits set forth in Table 2. 7.3.27.4 Exceptions from Competitive Solicitation Process – Professional Services - In addition to the exception for “uniquely qualified services” set forth under Section 7.3, the following criteria shall apply as exceptions to the competitive solicitation requirements set forth under Table 2 for Professional Services where such requirements would otherwise apply: 7.3.2.17.4.1 For Professional Services estimated to cost $25,000 or less, staff may request a proposal from one (1) qualified Consultant. 7.3.2.27.4.2 For Public Works projects where the project design is scheduled in phases, the related Professional Services may be negotiated with the Page 103 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 10 of 27 Consultant that performed the work for a prior phase, if (a) the Consultant performed satisfactory work on the prior phase(s) in terms of quality, schedule, and estimated design costs and (b) a satisfactory Contract can be negotiated. 7.3.2.37.4.3 For Professional Services in which it is impracticable to comply with the selection process because of the unique, exploratory, or experimental nature of the project, staff may request a proposal from one (1) qualified Consultant. 7.3.37.5 On Call Engineering Professional Services (Multiple Award Task Order Contracts) – The District may solicit RFPs for on-call engineering professional services and enter agreements for on-call engineering professional services. Entering into an agreement qualifies Consultant to perform services for the District on a task order basis, but it does not entitle Consultant to any compensation or a right to perform services on any scope of work or particular task order for the District. When the District needs services for task(s), it will submit a scope of work to Consultant requesting task proposals. If Consultant’s task proposal is selected by the District, Consultant represents and warrants to District that it is fully qualified and available to perform the services for, and as requested by, the District. 7.47.6 Rejecting Competitive Responses - In response to an Invitation to Bid, RFQ, or RFP, the District may reject a bid or other response which is in any way incomplete, irregular, amplified, unqualified, conditional, or otherwise not in compliance with the solicitation documents in all material respects and in accordance with law. The District may (a) waive any informality, irregularity, immaterial defects, or technicalities in any bids or other responses received; and/or (b) cancel an Invitation for Bid or RFP/RFQ, or reject all bids or responses for any other reason, which indicates the cancellation or rejection of all bids or responses is (i) in the best interest of the District, and (ii) in accordance with law. Rejection of all bids or responses or cancellation of competitive solicitations, including determinations to re-bid, or re-solicit are subject to the same level of authority which is required to award a Contract as provided under Table 1, and as required by law. 7.57.7 Awarding Contracts – Consistent with Section 11.0 below, the District reserves the right to award Contracts based upon the best interests of the District as determined by the District in its sole discretion. 8.0 Change Orders 8.1 Change Orders may be issued from time to time as required by changes in the specifications or conditions of a project, services performed, or materials to be issued. 8.1.1 Change Orders – PO Only - Change Orders up to 10% (to a maximum additional $1,000) of the original PO amount may be issued by the appropriate Department Manager without further approvals. A revised Purchase Order Requisition must be completed and approved at the appropriate authorization levels under Table 1 for any Change Order request exceeding the original amount by more than 10% or the $1,000 limit. 8.1.2 Change Orders – Formal Contracts and Amendments 8.1.2.1 For Contracts and/or Amendments under $75,000:  Change Orders up to 10% of the original Contract amount can be approved by the appropriate authorization levels as outlined in Table Page 104 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 11 of 27 1 up to a maximum total Contract amount of $75,000 without Board approval.  Board approval is required for Change Order requests exceeding the original Contract amount by more than 10%, or resulting in a total Contract amount over $75,000. 8.1.2.2 For Contracts and/or Amendments $75,001 and over:  Change Orders up to 10% (to a maximum additional $75,000) of the original Contract amount can be approved by the appropriate authorization levels as outlined in Table 1 without Board approval.  Board approval is required for Change Order requests exceeding the original Contract amount by more than 10%, or resulting in a $75,000 increase. 8.1.3 Change Order Exceeding Limits A Change Order exceeding the Change Order limits set forth in this article may be authorized by the General Manager prior to Board approval if, in the General Manager’s determination, any of the following circumstances exist: 8.1.3.1 A delay in Change Order authorization could result in a negative financial impact to the District. 8.1.3.2 A delay in Change Order authorization could result in damage to or impairment of the operations of a District facility. 8.1.3.3 An Emergency exists which requires immediate work/services. The Board shall be notified of any Change Order authorization exceeding the General Manager’s authorization limit at the next regularly scheduled Board meeting. 9.0 Ethical Procurement Conflict of Interest 9.1 Board members, District officers, and employees shall not be financially interested in any Contract made by them in their official capacity. (Government Code Sections 1090 and 1091.5). Board Members, District officers, and employees shall not participate in any way to influence a governmental decision in which he/she knows or has reason to know that he/she has a financial interest. (Government Code Section 87100 et seq.) 9.2 Any District employee (other than Administrative Personnel not under Designated Positions in the District’s Conflict of Interest Code) authorized under this Policy to make or enter into purchases on behalf of the District will complete a Statement of Economic Interests (Form 700) and comply with the District’s Conflict of Interest Code. 9.3 Confidential or proprietary information must be handled with due care and proper consideration of ethical and legal ramifications and governmental regulations. Page 105 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 12 of 27 9.4 Purchasing activities must be performed in accordance with all applicable laws and District policies. 9.5 Any employee/individual who violates the standards set forth in this Section may be subject to disciplinary action consistent with the District’s Ethics Policy and Employee Memorandum of Understanding or Personnel Manual in effect. 10.0 Emergency Procurement Procedures 10.1 In the event that the District declares an Emergency, the District may procure the necessary equipment, Services, and Materials in response to that Emergency without following the purchasing procedures prescribed by this Policy. 10.2 General Manager Authority 10.2.1 The Board has authorized the General Manager, or their designee, to approve Emergency Procurements described in Section 10.1. 10.2.2 If the Emergency Procurement exceeds the General Manager’s approval authority, the General Manager, or their designee, shall report to the Board, at its next meeting, the reasons justifying why the Emergency did not permit time to comply with the District’s purchasing requirements and why the purchase was necessary to respond to the Emergency. 10.3 Board Ratification 10.3.1 After the District makes an Emergency Procurement, it shall make a finding based on substantial evidence set forth in the minutes of its meeting that the Emergency did not permit time to comply with the District’s purchasing requirements, and that the purchase was necessary to respond to the Emergency. 10.4 Federally Declared Emergencies; Procurement and Contracting Requirements 10.4.1 In the event of an Emergency declared by the President of the United States, the District must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for Contract costs for eligible work. FEMA funding is governed by Title 2 of the Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 10.4.2 Federal Emergency Procurement Procedures 10.4.2.1 Micro Purchases  Purchases within the micro-purchase threshold (e.g. currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the District considers, in its sole discretion, the price to be reasonable.  To the extent practicable, the District must distribute micro-purchases equitably among qualified suppliers. Page 106 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 13 of 27 10.4.2.2 Small Purchases  Purchases within the simplified acquisition threshold (e.g. currently set at purchases of $250,000 or less) shall not be required to be formally bid.  Price quotations must be received from no less than three (3) sources. 10.4.2.3 Formal Sealed Bidding  Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $250,000, or as may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR Section 2.101.  The District must publicly advertise the invitation for Bids and publicly open all bids at the time and place prescribed in the Invitation to Bid.  Any Contracts awarded pursuant to this procedure may be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. 10.4.2.4 Solicitation of Competitive Proposals  When the nature of a Procurement does not lend itself to formal, sealed bidding (e.g. Professional Services), the District may solicit competitive proposals.  A Request for Proposals (RFP) must be publicly advertised, and the District must solicit proposals from an adequate number of sources. The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weight need not be disclosed.  Any Contract awarded based on the competitive proposal Procurement process cannot be based exclusively on price or price- related factors.  If a Contract is awarded, it may be to the responsible firm whose proposal is most advantageous to the District (“best value”), with price and other factors considered. 10.4.3 Federal Emergency Noncompetitive Procurements 10.4.3.1 Contracts may be procured through a noncompetitive proposal only when:  The item is only available from a single source;  The public exigency or Emergency for the requirement will not permit a delay resulting from competitive solicitation; Page 107 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 14 of 27  The District authorizes noncompetitive proposals, as otherwise permitted by the Purchasing Policy; or  Competition is deemed inadequate after the solicitation of a number of sources. 10.4.4 Federal Emergency Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms 10.4.4.1 The District must conduct all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth in 2 CFR Section 200.321. 10.4.4.2 The District has developed Contract templates that include requirements for bidders to take those affirmative steps to secure involvement by those firms, as outlined in 2 CFR Section 200.321(b). 10.4.5 Federal Emergency Cost or Price Analysis 10.4.5.1 The District shall perform a cost or price analysis in connection with every Procurement, including Contract modifications, in excess of the simplified acquisition threshold. While the method and degree of analysis depends on the facts surrounding the particular Procurement, the District must, at a minimum, make independent estimates before receiving bids or proposals. 10.4.5.2 The District shall negotiate profit as a separate element of the price for each Contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR Section 200.323(b). 10.4.6 Federal Emergency Payment Procedures 10.4.6.1 Contracts entered into pursuant to this Section 10.4 shall utilize only fixed- price, cost-reimbursement, or, to a limited extent, time and materials payment methods. 10.4.6.2 Time and Materials (T&M) Contracts  T&M Contracts should be used rarely, and the use of T&M Contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the District cannot define a clear scope of work.  The District shall only enter into a T&M Contract if all of the following apply: - No other Contract was suitable; - The contract has a guaranteed maximum price that the Contractor exceeds at its own risk; and Page 108 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 15 of 27 - The District provides a high degree of oversight to obtain reasonable assurance that the Contractor is using efficient methods and effective cost controls.  The District must define the scope of work as soon as possible to enable Procurement of a more acceptable type of Contract (i.e., non-T&M). 10.4.6.3 Separate Invoicing  All purchases made during a proclaimed Emergency shall require separate invoicing from routine (i.e., non-Emergency related) purchases. All invoices shall state the Services or Materials provided and shall specify where the Services or Materials were delivered. All invoices shall specify the location(s) where the Services or Materials were used, if possible. Any invoice which fails to properly identify the Emergency nature of the purchase and provide details as to the date(s) and location(s), as appropriate, shall not be paid until such information is provided by the vendor and re-submitted in correct form. 10.4.6.4 Auditing of Invoices for Debris Removal  All invoices for debris clearance and removal shall be audited prior to payment to the vendor. Vendors shall be notified of the requirement prior to award of any Contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide. 11.0 Procurement Procedures Pertaining to Federal Grants 11.1 In the event that the District is identified as a recipient or sub-recipient of a Federal Government Grant or any Pass-Through Federal Grant, the District will be required to comply with the Federal Uniform Guidance (2 C.F.R. Part 200) standards and procedures as listed in Exhibit B. This Guidance establishes requirements by grantees when procuring goods and services needed to carry out a Federal award. 12.0 County Water District Status 12.1 The District is a County Water District and therefore is not mandated by State law to competitively bid any purchases, including those for Public Works projects and/or capital expenditures. (Associated Builders & Contractors, Golden Gate Chapter, Inc. v. Contra Costa Water District (1995) 37 Cal.App.4th 468.) The District has discretion to enter into non-bid Contracts for Public Works, to procure Services and Materials, to contract for design-build work, to utilize job-order contracting and to enter into Cooperative Purchasing arrangements for the design, construction, and maintenance of Public Works, or undertake any other form of contracting determined to be in the District’s best interest, except as otherwise expressly restricted by law. Notwithstanding this lack of legal mandate and contractual discretion, District staff shall make a good faith effort to support the Competitive Selection Process described in Section 7. Page 109 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 16 of 27 13.0 Policy Revisions 13.1 This Policy will be maintained and revised by the General Manager or their designated representatives in consultation with the District’s legal counsel, subject to approval by the Board. This Policy will be reviewed on an annual basis and revisions will occur whenever applicable Federal, State, or local regulations change or otherwise as the need arises and in the discretion of the Board. Page 110 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 17 of 27 EXHIBIT A PROCUREMENT CARD POLICY 1.0 Purpose The Procurement Card Program was developed to allow designated full-time regular employees the capability to purchase, with predefined spending limits, certain types of items directly from the merchant thus reducing the cost associated with low-value purchasing activity. The purpose of this policy is to identify the conditions in which employees will be issued a Procurement Card and the rules for its use. 2.0 General Information Authorization to use this Card is restricted to the CARDHOLDER ONLY and MAY NOT BE USED FOR PERSONAL PURCHASES. 2.1 Employees will not use District Procurement Cards for personal expenses even if the intent is to reimburse the District later. 2.2 Procurement Cards must not be used for purchases when the cardholder has personal interest in the merchant or knowledge that a purchase would create a conflict of interest. 2.3 Before receiving a Procurement Card, employees will sign a “Cardholder Procurement Card Agreement” and receive a copy of the Policies and Procedures setting forth their obligations under this program. 2.4 The Procurement Card is supplemented to the procurement process. As with other procurement methods the following conditions must be met when using the Procurement Card: 2.4.1 The Procurement Card should be used whenever possible in lieu of petty cash or low dollar Requisitions from point of sale vendors. 2.4.2 Purchases shall not be split to circumvent transaction limits as set in Table 1 of this Procurement Policy. 2.4.3 Each single purchase may be comprised of multiple items, but the total including tax and freight cannot exceed the single purchase dollar limit on the Procurement Card. 2.4.4 Every purchase using the Procurement Card must adhere to all provisions of the Procurement Policy. 3.0 Procurement Card Role Definitions 3.1 Cardholder – The cardholder is the District employee whose name appears on the Procurement card. 3.2 Approver: The Approver is the person who is responsible for reviewing the charges for a group of cardholders to ensure that purchases are appropriate and allowed. Page 111 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 18 of 27 3.3 Program Administrator: The Program Administrator provides overall administration and oversight of the Procurement Card program. 4.0 Responsibilities 4.1 Cardholders: Cardholders Safeguard the Procurement Card, provide itemized receipts for all transactions, allocate the transactions, and sign off on the transactions in a timely basis. 4.2 Approvers: Approvers review transactions of cardholders for adherence to policies and procedures, ensure that all transactions are properly coded, and all disputed charges are correctly reported. 4.3 The Cardholder and Approver are required to review and approve the individual cardholder transactions and submit to Accounts Payable within the established time frame specified by Finance Manager. This is critical to allow Accounts Payable to make payment within specified time limits. 4.4 Failure to meet approval deadlines can result in the following: 4.4.1 First Failure – Verbal/electronic warning. 4.4.2 Second Failure – Written warning and notification to the appropriate Department Manager and possible suspension of card privileges. 4.4.3 Third Failure – Suspension of card privileges. Restoration of card privileges requires approval by the Finance Manager. 5.0 Procurement Audits To ensure the continued success of the Procurement Card Program, periodic, random audits will be performed by the Finance Department. The purpose of the audits will be to ensure the cardholders are adhering to established policies and procedures. 6.0 Use of Procurement Card for Travel and Meals Procurement cards may be used for approved travel in accordance with the District’s travel policy. 7.0 Card Restrictions The Procurement Card is not to be used for services of any kind, leases, or repairs excluding auto when traveling, due to insurance requirements and the complexity of IRS 1099 reporting. Department Managers may apply additional restrictions on card use. It is the responsibility of the cardholder to know what their department’s restrictions are. 8.0 Misuse of a Procurement Card 8.1 The following situations are a few examples of “misuse” of a Procurement Card: 8.1.1 Purchases using the Procurement Card for personal benefit of the employee. Page 112 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 19 of 27 8.1.2 Assignment or transfer of an individual Procurement Card to an unauthorized person. 8.1.3 Purchases from family, friends or relatives where there is personal gain or a conflict of interest, perceived or real. 8.2 Any variance, misuse, and/or violation of the policy and processes set forth will be considered improper use of the card. This may result in card cancellation, disciplinary action, up to and including termination. 9.0 Return of Merchandise In the event the cardholder determines that an item must be returned for any reason, the item and credit card receipt must be returned to the merchant/vendor as soon as possible. At no time is the cardholder allowed to accept a store gift card or cash in lieu of a credit adjustment to the Procurement Card. Cardholder is responsible for allocating and signing off on both the purchase and the credit transactions in a timely manner. 10.0 Disputes All transactions should be monitored for validity and disputed transactions must be reported to the Program Administrator. To process a dispute, consult the Program Administrator. 11.0 Lost or Stolen Cards When a Procurement Card is lost or stolen during normal business hours the Cardholder must notify their Approver and the Program Administrator immediately. If it is after hours the Cardholder must notify the issuing bank directly. 12.0 Separation, Transfer or Revocation of Card Privileges Upon leaving the District, transferring to another Department or loss of Procurement Card privileges, the Cardholder must return their Procurement Card to Human Resources. Concurrent with surrendering the card, the cardholder must deliver documentation to their supervisor of all outstanding transactions. The General Manager, Assistant General Manager, or Department Managers have absolute discretion to suspend or revoke a Cardholder’s privileges at any time and for any reason. Page 113 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 20 of 27 EXHIBIT B FEDERAL REQUIREMENTS 1.0 Regulations for Procurement of Property or Services Stemming from Federal Aid 1.1 This section shall apply to the awarding of sub-grants and contracts by the District stemming from federal grants to the District. This section shall have the same application on the awarding of sub-grants and contracts by the District stemming from state, county or other non-federal government entity grants originating as federal grants. 2.0 Procurement Standards 2.1 The District shall maintain a contract administration system which ensures contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders. 2.2 The District shall maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. No employee, officer or agent of the District shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: 2.2.1 The employee, officer or agent; 2.2.2 Any member of his or her immediate family; 2.2.3 His or her partner; or 2.2.4 An organization which employs, or is about to employ, any of the above, has a financial or other interest in or a tangible personal benefit from a firm considered for award. 2.3 The District’s officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to sub- agreements. Such a conflict will not arise where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. The District’s standards of conduct provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the District. 2.4 The District shall not enter into a contract with a non-Federal entity has a parent, affiliate, or subsidiary organization that is not a state, local government or Indian tribe, unless the non-Federal entity maintains written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest mean due to relationships with a parent company, affiliate, or subsidiary organization, the non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization. 2.5 The District shall avoid acquisition of unnecessary or duplicative items. Consideration will be given to consolidating or breaking out procurements to obtain a more economic purchase. Where appropriate, an analysis will be made of lease versus purchase Page 114 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 21 of 27 alternatives, and any other appropriate analysis to determine the most economical approach. 2.6 The District shall consider entering into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. 2.7 The District shall consider using Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs. 2.8 The District shall consider using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure its essential function is provided at the overall lower cost. 2.9 The District shall make awards only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance and financial and technical resources. 2.10 The District shall maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection and the basis for the contract price. 2.11 The District shall use time and material type contracts only: 2.11.1 After a determination is made that no other contract is suitable; and 2.11.2 If the contract includes a ceiling price the contractor exceeds at their own risk. 2.12 The District alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims. These standards do not relieve the District of any contractual responsibilities under its contracts. 3.0 Competition 3.1 The District will conduct procurement transactions in a manner providing full and open competition. To ensure objective contractor performance and eliminate unfair competitive advantage, contractors developing or drafting specifications, requirements, statements of work, or invitations for bids or requests for proposals shall be excluded from competing for such procurements. 3.2 The District shall conduct procurements in a manner prohibiting the use of statutorily or administratively imposed in-state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criteria provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. Page 115 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 22 of 27 3.3 The District shall have written procedures for procurement transactions. These procedures will ensure that all solicitations: 3.3.1 Incorporate a clear and accurate description of the technical requirements for the material, product or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equal description may be used to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors shall be clearly stated; and 3.3.2 Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. 3.4 The District shall ensure prequalified lists of persons, firms or products that are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The District shall not preclude potential bidders from qualifying during the solicitation period. 4.0 Methods of Procurement to be Followed The District shall use one of the following methods of procurement: 4.1 Procurement by Micro-Purchases. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro- purchase threshold as set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions) and adjusted periodically for inflation. As of the date of this ordinance, the micro-purchase threshold is $10,000. 4.2 Procurement by Small Purchase Procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies or other property that do not cost more than the simplified acquisition threshold as set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions) and in accordance with 41 U.S.C. 1908 and periodically adjusted for inflation. If small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources. As of the date of this ordinance, the simplified acquisition threshold is $250,000. 4.3 Procurement by Sealed Bids (Formal Advertising). Bids are publicly solicited and a firm- fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price. 4.3.1 For sealed bidding to be feasible, the following conditions should be present: 4.3.1.1 A complete, adequate, and realistic specification or purchase description is available; Page 116 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 23 of 27 4.3.1.2 Two or more responsible bidders are willing and able to compete effectively for the business; and 4.3.1.3 The procurement lends itself to a firm-fixed-price contract and the selection of the successful bidder can be made principally based on price. 4.3.2 If sealed bids are used, the following requirements apply: 4.3.2.1 The invitation for bids will be publicly advertised and bids shall be solicited from an adequate number of known suppliers, providing them sufficient time prior to the date set for opening the bids; 4.3.2.2 The invitation for bids, which will include any specifications and pertinent attachments, shall define the items or services for the bidder to properly respond; 4.3.2.3 All bids will be publicly opened at the time and place prescribed in the invitation for bids; 4.3.2.4 A firm-fixed-price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost and life cycle costs shall be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and 4.3.2.5 If there is a sound documented reason, any or all bids may be rejected. 4.4 Procurement by Competitive Proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed- price or cost-reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply: 4.4.1 Requests for proposals shall be publicized and identify all evaluation factors including relative importance. Any response to publicized requests for proposals shall be honored to the maximum extent practical; 4.4.2 Proposals will be solicited from an adequate number of qualified sources; 4.4.3 The District shall conduct technical evaluations of the proposal received and for selecting awardees; 4.4.4 Awards will be made to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and 4.4.5 The District may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is Page 117 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 24 of 27 selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort. 4.5 Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances applies: 4.5.1 The item is available only from a single source; 4.5.2 The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; 4.5.3 The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in a written request from the District; or 4.5.4 After solicitation of multiple sources, competition is determined inadequate. 4.6 Contracting with Small and Minority Businesses, Women’s Business Enterprises and Labor Surplus Area Firms. 4.6.1 The District shall take all necessary affirmative steps to assure that minority businesses, women’s business enterprises and labor surplus area firms are used when possible. 4.6.2 Affirmative steps include: 4.6.2.1 Placing qualified small and minority businesses and women’s business enterprises on solicitation lists; 4.6.2.2 Assuring that small and minority businesses and women’s business enterprises are solicited whenever they are potential sources; 4.6.2.3 Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women’s business enterprises; 4.6.2.4 Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and women’s business enterprises; 4.6.2.5 Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and 4.6.2.6 Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in subsections 4.6.2.1 through 4.6.2.6 of this section. Page 118 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 25 of 27 4.7 Contracts Cost and Price 4.7.1 The District shall perform a cost or price analysis in every procurement action exceeding the simplified acquisition threshold including contract modifications. The method and degree of analysis will be dependent on the facts surrounding each procurement situation. As a starting point, the District shall make independent estimates before receiving bids or proposals. 4.7.2 Costs or prices based on estimated costs for contracts under the Federal award will be allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the District under Subpart E – Cost Principles of Title 2, Subtitle A, Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards). 4.7.3 The cost plus a percentage of cost and percentage of construction cost methods of contracting shall not be used. 4.8 Federal Awarding Agency or Pass-Through Entity Review 4.8.1 The District shall make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for purchase. 4.8.2 The District shall make available upon request, for the Federal awarding agency or pass-through entity pre-procurement review, procurement documents, such as requests for proposal or invitations for bids, or independent cost estimates when: 4.8.2.1 The District’s procurement procedures or operation fails to comply with the procurement standards of Title 2, Subtitle A, Part 200, Subsection 200.324; 4.8.2.2 The procurement is expected to exceed the simplified acquisition threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation; 4.8.2.3 The procurement, which is expected to exceed the simplified acquisition threshold, specifies a “brand name” product; 4.8.2.4 The proposed contract is more than the simplified acquisition threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or 4.8.2.5 A proposed modification changes the scope of a contract or increases the contract amount by more than the simplified acquisition threshold. 4.8.3 The District may be exempted from the pre-procurement review in subsection 4.8.2 above if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards set forth in Title 2, Subtitle A, Part Page 119 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 26 of 27 200, or the District self-certifies compliance with such standards if self-certification is permitted by the Federal awarding agency or pass-through entity. 4.9 Bonding Requirements. For public projects, the District shall require bid guarantees, performance bonds, and payment bonds consistent with Title 2, Part 200, Section 200.325 of the Code of Federal Regulations. 4.10 Contract Provisions. The District’s contracts shall contain the provisions in Appendix II to Title 2, Subtitle A, Part 200 – Contract Provisions for non-Federal Entity Contracts Under Federal Awards, as applicable. Page 120 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 27 of 27 PURCHASING POLICY ACKNOWLEDGEMENT I acknowledge that I have received and read the provisions contained in this Purchasing Policy (Policy). I agree to comply with all terms and conditions of the Policy. I understand that it is my responsibility to consult my supervisor or the Finance Department if I have any questions that are not answered in this Policy. I also understand that the provisions in this Policy are guidelines and may not address all circumstances that may arise. In such case, the Finance Department shall apply the Policy based on factors including but not limited to past practices and rules of statutory interpretation. Employee Printed Name Date Employee Signature Distribution: Employee’s Personnel File Page 121 of 171 Resolution No. 2024-XX Amending the Purchasing Policy 1 RESOLUTION NO. 2024-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING THE PURCHASING POLICY AND RESCINDING RESOLUTION NOS. 2023-16 AND 2023-29 WHEREAS,from time to time, it is necessary for the Board of Directors to review the Yorba Linda Water District’s Purchasing Policy and make modifications that reflect current District procedures, public policy demands, and economic conditions; and WHEREAS,the Board of Directors desires to amend the Policy last adopted by Resolution No. 2023-16 and amended by Resolution No. 2023-29. NOW, THEREFORE, the Board of Directors of Yorba Linda Water District does find, determine, and resolve: Section 1:That the Yorba Linda Water District Purchasing Policy (3010-007-POL) as attached hereto is hereby adopted and deemed effective April 14, 2024. Section 2:That Resolution Nos. 2023-26 and 2023-29 are hereby rescinded effective April 11, 2024. PASSED AND ADOPTED this 11th day of April 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 122 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 1 of 26 PURCHASING Dept/Div: Finance Approved By: Resolution No. 2024-XX Effective Date: April 11, 2024 Applicability: District Wide Supersedes: Resolution Nos. 2023-16, 2023-29 See Also: N/A 1.0 General Policy 1.1 This Yorba Linda Water District Purchasing Policy (“Policy”) establishes policies and procedures for the District to (a) bid and purchase services, materials, equipment, and supplies (referred to collectively as “Services and/or Materials”), pursuant to Government Code Section 54201 et seq., and (b) bid and award Public Works projects. 1.2 This Policy establishes the Board of Directors’ (the “Board”) approved policies and procedures regarding the Procurement of Services and Materials and Public Works projects, including expenditure authorization and limits, competitive proposal and bidding requirements, and general Procurement procedures. All purchases of Services or Materials and Public Works projects to be paid by the District must adhere to the authority level and dollar limits of this Policy as set forth in Section 2.0, except as otherwise provided by specific terms and exceptions in this Policy. 2.0 Authorization 2.1 By adoption of this Policy, the Board is authorizing the General Manager and other designated representatives to exercise certain duties and responsibilities that are essential for the day-to-day operation of the District. 2.2 The General Manager may delegate the Procurement of Services and Materials and Public Works projects to those staff members given specific authority, consistent with the terms of this Policy. 2.3 Delegation of purchasing authority may be through the authorized use of Purchasing Cards, Purchase Orders, check requests, or other written authorization. All such purchases will be made in conformity with the policies and procedures prescribed within this Policy. 2.4 The Board-established Procurement limits and Contract signatory authorities are listed in Table 1 below. These limits are applicable on a per-expenditure/per-Contract basis, not on an aggregated basis, for unrelated activities. Page 123 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 2 of 26 Table 1 Procurement Limits and Contract Signatory Authority Title Expenditures Contract Signature Authority General Manager Up to $75,000 $75,001 and over with Board Authorization; up to $75,000 without Board Authorization. Assistant General Manager Up to $50,000 Up to $50,000 Department Managers Up to $25,000 Up to $25,000 Accounting Supervisor, Budget Analyst, Customer Service Billing Administrator, Principal Engineer, Public Affairs Officer, Records Management Administrator, Senior Engineer, Senior Executive Assistant, Senior IS Administrator, Superintendents Up to $5,000 None Administrative Personnel Up to $2,000 None 3.0 Definitions The terms referenced in this policy shall have the meanings as defined below: 3.1 Administrative Personnel – District administrative employees authorized by the General Manager to purchase miscellaneous items, food, and travel in support of District functions includes Executive Assistant, Human Resources Analyst, Operations Lead Staff, and any other administrative position as authorized by the General Manager. 3.2 Amendment – A written change or addition to a legal document which, when properly executed, has the same legal validity of the original document. 3.3 Board – The Board of Directors of Yorba Linda Water District. 3.4 Change Order – A written Amendment modifying the terms of an existing Contract or Purchase Order. 3.5 Consultant – Any person, firm, or entity that provides or offers to provide Professional Services to the District. 3.6 Contract - Written agreement authorizing a contractor, Consultant, supplier, or service provider to provide Services or Materials, or Public Works, in accordance with the material requirements, conditions, or scope of work stated in the Contract. 3.7 Contractor – Any person, firm, or entity that submits a bid, proposal, or Contract in connection with a procurement or service. This term also includes any person who conducts business as an agent or representative of the contractor. 3.8 District – Yorba Linda Water District. Page 124 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 3 of 26 3.9 Emergency – A situation in which unforeseen circumstances present an immediate risk of harm or hazard to real or personal property, the public health, safety, welfare, or District personnel or property, or threaten serious interruption of District operations. 3.10 General Manager – General Manager of the District or the person appointed by the Board to act in the capacity of the General Manager and authorized to administer this Policy on their behalf. 3.11 Invitation to Bid - A formal process for soliciting sealed bids from qualified prospective suppliers or Public Works Contractors. 3.12 Multiple Year Contract - A Contract for the purchase of Services, Materials, or Public Works for (a) a multiple year term or (b) that may contain provisions to extend performance by exercising optional renewal periods. A Multiple Year Contract does not obligate the District beyond the initial award period and shall not provide for a cancellation payment to the Contractor if options are not exercised 3.13 Non-Discretionary Purchases – Payments to utilities, temporary employment services, insurance providers, healthcare providers, and national, federal, state, or local agencies that relate to routine obligations and expenses essential to the District’s ability to provide service to customers and that have been approved in fiscal year operating or capital budgets. 3.14 Non-Professional Services – Services other than Professional Services, including, but not limited to, supply and maintenance services. 3.15 Procurement - The purchase or lease of Services or Materials, or Public Works. 3.16 Procurement Card - A form of charge card (also referred to as a P-Card or Purchasing Card) that allows for goods to be purchased without using a Purchase Order. Designated District staff are issued a US Bank Cal-Card for their use on miscellaneous purchases (refer to Section 5.3) of this Policy. 3.17 Professional Services – Any type of special service or advice in financial, economic, accounting, engineering, legal, or administrative matters by persons specially trained and experienced and competent to perform the special services required. (Gov’t Code § 53060.) Such services include but are not limited to architectural; engineering; environmental; financial; land surveying; construction management; audits; training services; legal services; preparation of planning or studies; SCADA integration; technology application development; and personnel, job classification, and benefit studies. 3.18 Public Works – As defined by California Public Code Section 22002, are public projects, which include construction, reconstruction, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. Maintenance work is not considered a public project for purposes of this definition. 3.19 Purchase Order (PO) – An authorization, under a standardized form in which the party designated as the “provider” is to provide Services and Materials for which the District agrees to pay. 3.20 Request for Proposal (RFP) - A solicitation used for the Procurement of Professional Services and Non-Professional Services. Prospective suppliers or Consultants submit proposals Page 125 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 4 of 26 based on requested information and are evaluated/awarded based on pre-established criteria. 3.21 Request for Quotes (RFQ) - A solicitation used for Procurement of construction Services or Materials. 3.22 Requisition (REQ) - The procedural method by which departments may request a PO for the purchase of materials, supplies, or equipment. Requisitions are entered into the District’s ERP system application. 3.23 Single Source Purchase - Procurement where: (a) there is a compelling reason for only one source, a preferred brand, like material, homeland security goods, services, etc., to be procured; or (b) the commodity is unique, including, but not limited to, acquisition of data processing, telecommunications, and word processing equipment, goods and services; or (c) the purchase of a specific brand name, make or model is necessary to match existing District equipment or facilitate effective maintenance and support; or (d) when it is in the best interest of the District either (i) to extend or renew a Contract from a previous contract period, based on satisfactory service, reasonable prices, avoidance of start-up costs, avoidance of interruptions to District business, or good business practices; or (ii) to initiate a new Contract based on satisfactory service, reasonable prices, avoidance of start-up costs and/or interruptions to District business, and/or for good business practices. 3.24 Sole Source Purchase - Procurement where only one viable source exists. This may be due to legal restrictions of patent rights and copyrights, a proprietary process, warranty issues, original equipment, etc. 4.0 General Procurement Policies 4.1 Procurement practices shall comply with laws, regulations, and guidelines of the State of California and any other applicable law and provisions of grant or funding contracts, if applicable. 4.2 Any employee/individual affecting any Procurement outside of the policies and procedures established by this Policy and without General Manager or Board authorization to do so, may be subject to disciplinary action and/or termination in accordance with District policies. 4.3 Expenditures and Contract awards must be authorized by the appropriate authorization level indicated in Table 1. 4.3.1 Separating or dividing Contracts into smaller components for the purpose of bringing the cost of one or more Contracts below any specified sum to avoid a requirement in any section of this Policy or any policy incorporated herein is strictly prohibited. Contracts may be divided only to meet unique scheduling of a project or to accommodate necessary time frames. In addition, no specifications shall be drafted in such a manner as to limit competitive bidding or solicitation directly or indirectly to any one specific vendor, or any specific brand, product, thing, or service, except for those items that are approved as exempt from competitive bidding or solicitation requirements as provided in Section 7.1.3. Page 126 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 5 of 26 4.4 Purchase amounts include taxes and the cost of shipping, freight fees, and any other charges billed by the supplier or Contractor for purposes of the authorization limits under this Policy. 4.5 Purchase authorization and expenditure limits in Table 1, and competitive solicitation requirements in Table 2 and as further set forth in this Policy, are on a per purchase/per Contract basis and shall not be applied as an aggregate limit to any vendor, supplier, Contractor or Consultant. 4.6 With the exception of the General Manager, in the absence of an authorized signatory for a given request, authorization will be obtained from the next highest authority in Table 1. In the case where the next highest authority is absent, then authorization will be obtained by an authorized signatory in order of rank and availability. 4.7 The District may use electronic commerce whenever practicable or cost-effective. The District may accept electronic signatures and records in connection with the District Procurement, as permitted by applicable law. 5.0 Procurement Methods The following methods are available to initiate a purchase request or to pay for Services and Materials : 5.1 Requisition/Purchase Order - Staff that require Services and Materials to carry out the defined duties of their positions shall submit Requisitions, in advance, for purchases in accordance with this Policy and other applicable procedures and policies of the District. Staff will generate a Purchase Order from the Requisition. 5.1.1 Complete the Requisition form or Requisition data entry screen to request that Services or Materials are ordered. 5.1.1.1 Allow at least two (2) working days of lead time. 5.1.1.2 Provide complete name and address of selected vendor. 5.1.1.3 Indicate the purpose of the Purchase Order. 5.1.1.4 Describe the Services or Materials clearly and specifically. Include make, model, manufacturer’s part number, catalog number, or vendor catalog page number, if available. Indicate color, size, or any option required. 5.1.1.5 Indicate the quantity and unit price for each Service or Material. 5.1.1.6 Note whether the Services or Materials are taxable. 5.1.1.7 Note any freight charges. 5.1.1.8 Must indicate a valid General Ledger account number(s), and correct projects number(s). 5.1.1.9 Indicate the date the Services or Materials are needed. Page 127 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 6 of 26 5.1.1.10 Attach any required price quotes and data that supports the requested purchase, if available. 5.1.1.11 Seek appropriate approvals as required in Table 1. 5.1.1.12 Purchases shall not be split to circumvent Contract signatory authorizations as set in Table 2. 5.1.1.13 Submit Purchase Order for processing. 5.1.2 Upon approval and receipt of a fully executed purchase Requisition, the Purchase Order will be systematically assigned the next consecutive number. 5.1.2.1 The original Purchase Order will be given back to the originator or sent to the vendor. 5.1.2.2 A copy of the approved Purchase Order, and any supporting documents, will be forwarded to Accounts Payable for processing. 5.1.2.3 A copy of the approved Purchase Order will be forwarded to the Warehouse pending receipt of goods. 5.1.2.4 An electronic record of the Requisition/Purchase Order will be kept within the purchasing system for historical purposes. 5.2 Check Request - A check request can be used to initiate payment for certain limited Services or Materials without a Purchase Order. Check requests can be used to request payment for Non-Discretionary Purchases, services rendered, subscriptions, membership dues, workshop/seminar/conference registrations, use of facilities, etc. 5.3 CAL-Card and Other Procurement Cards - Designated staff may be assigned a CAL-Card for miscellaneous purchases. Purchases using the CAL-Card are subject to the terms and conditions of the District Cardholder Procurement Card Agreement and any other applicable District procurement card policies or procedures. Professional Services are not to be acquired on CAL-Cards due to lack of insurance and indemnification language associated with these services. CAL-Card limits may be increased for a specific authorized user with the approval of the General Manager subject to the authorization limits as set in Table 1. Use of all other Procurement Cards are subject to the terms of this Policy and to any set terms provided at the time of card issuance to the designated staff and any subsequent Amendments to such terms, and other applicable District policies (Refer to Exhibit A). 5.4 Contracts - Provisions shall be made, either through specifications or procedures established by the District, for verification of the references and financial responsibility of the contracting parties prior to the award of a Contract. After award, all Contracts shall be executed on behalf of the District by the appropriate authorized signatory indicated in Table 1. In no case shall any Contract be made if sufficient funds are not budgeted and appropriated and not available to make payment promptly upon delivery or completion, or in accordance with a progress payment schedule, unless otherwise authorized and approved by the Board or approved by the General Manager as provided for in Section 6.2 (Emergency). Page 128 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 7 of 26 5.4.1 Contracts for Non-Professional Services and Professional Services shall be executed when an expenditure exceeds $5,000 (except in the event of an Emergency). 5.4.2 Multiple Year Contracts, such as On-Call or Multiple Award Task Order Contracts (MATOCs), are allowed when in the best interests of the District as determined, and executed by the General Manager. 5.4.2.1 For purposes of Procurement authorization, the dollar value of a Multiple Year Contract shall be the total Contract value, including optional renewal periods. Once initially approved in accordance with the Policy requirements, any optional renewals may then be authorized by the General Manager at the time of renewal, regardless of the dollar amount, provided the pre-priced option is consistent with the terms of the Contract as initially approved. 5.4.2.2 Multiple Year Contracts for Procurement of Professional Services and Non- Professional Services in amounts over $75,000 shall not exceed five (5) years in duration with up to two 5-year extension options unless the terms of the contract specifically and for good cause provide otherwise. At the expiration of the five (5) year period and any applicable extensions, the Multiple Year Contract shall be presented to the Board of Directors for consideration or shall comply with the Competitive Selection Process set forth in Section 7.0. 6.0 Exceptions to Pre-Authorization 6.1 Non-Discretionary Purchases - Non-Discretionary purchases do not require Board approval for payment, including those that exceed the General Manager limit of $75,000. Purchase Orders are not required for Non-Discretionary Purchases that pertain to payments to utilities, insurance providers, health care providers, payroll, and national, federal, state, or local agencies that relate to routine obligations and expenses essential to the District’s ability to provide service to customers and that have been approved in fiscal year operating budgets. 6.2 Emergency Work/Services - The General Manager, Assistant General Manager, or the assigned Operations or Engineering Manager may authorize Emergency expenditures for work, Services, and/or Supplies where the cost exceeds $75,000 without prior Board approval. The Board shall be notified of any expenditures for Emergency work, Services and/or Supplies exceeding the General Manager’s authorization limit at the next regularly scheduled Board meeting. 6.3 Purchase Requests - Purchase requests require no prior authorization or signatory approval under Table 1 to replenish the District’s warehouse inventory within established inventory re-order levels. 6.4 Procurement by Single Source or Sole Source does not require Board approval for payment, including those that exceed the General Manager limit of $75,000. Any such Procurement of $25,000 or greater must be presented to the Board of Directors at the next regularly scheduled meeting. Page 129 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 8 of 26 7.0 Competitive Selection Process 7.1 General - A competitive selection process for Procurement of Services and Materials, and for Public Works projects, is required in accordance with the limits as set forth in Table 2 below (subject to certain exceptions, qualifications, or limitations as further set forth below). Table 2 Competitive Solicitation Process - Requirements Purchase Amount Solicitation Requirement $25,000 and under One Quote $25,001 - $50,000 Two Quotes $50,001 - $75,000 Three Quotes $75,001 and over RFP or RFQ or Invitation to Bid Process Required 7.1.1 Competitive Solicitation - Submission 7.1.1.1 All quotes, bids, and proposals must be in writing. An email is acceptable for expenditures of $75,000 and under. 7.1.1.2 RFP, RFQ, and Invitation to Bid submissions must be in writing and be in substantial compliance with terms in the solicitation, or as otherwise required by law, or may be disqualified. 7.1.1.3 Quotes, bids, and proposal documentation shall be retained pursuant to the District’s record retention policy. 7.1.2 Exceptions from Competitive Solicitation Process - Generally, solicitation of bids or proposals is preferable whenever practicable. In addition to the exceptions stated under Section 7.3.2, the competitive solicitation requirements established in Table 2 may be waived when any of the following criterion is applicable: 7.1.2.1 Sole Source Purchases. 7.1.2.2 Single Source Purchases. 7.1.2.3 Emergency expenditures. 7.1.2.4 After a reasonable attempt has been made to obtain competitive quotes/responses and it has been determined that (a) no additional suppliers/providers/Contractors/Consultants can be located; (b) the District has a lack of response from suppliers/providers/Contractors/Consultants to a competitive solicitation; or, (c) when sufficient, satisfactory bids/proposals are not received, based on the District’s sole discretion. 7.1.2.5 Purchases to replenish the District’s warehouse inventory within established inventory re-order levels. Page 130 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 9 of 26 7.1.2.6 As provided by law. It shall be at the discretion of the General Manager or Assistant General Manager and the initiating Department Manager(s) to determine whether an expenditure meets a criterion listed herein to be exempt from a competitive solicitation, subject to any Board authorization. Such expenditures that meet a criterion will be presented to the Board of Directors at a publicly held meeting. 7.2 Public Works - Contracts for Public Works projects shall conform to applicable requirements for Public Works Contracts under State law, including but not limited to requirements relating to (a) listing of subcontractors, (b) posting of a payment bond in an amount not less than 100% of the total Contract amount for all Public Works Contracts over $25,000, and (c) payment of prevailing wages for all Contracts for Public Works exceeding $1,000 or as otherwise required by statute. Unless specifically waived by the District with the approval of the General Manager and District’s legal counsel, the District shall require performance bonds for all Public Works Contracts in an amount not less than 100% of the total Contract amount. Public Works Contracts let by an Invitation to Bid may be awarded (a) to the lowest responsive bid, responsible bidder, and/or (b) in accordance with (i) State law, (ii) the District’s standard Public Works Contract documents, and (iii) Section 11.0 below. 7.3 Professional Services (over $75,000) - RFPs will be initiated pursuant to the limits set forth in Table 2 when the Contract is anticipated to exceed $75,000, unless the District’s needs mandate uniquely qualified services, in which case only one proposal from a qualified firm may be solicited. Professional Services may be engaged in accordance with California Government Code §4525 et seq., and on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the District. 7.4 Exceptions from Competitive Solicitation Process – Professional Services - In addition to the exception for “uniquely qualified services” set forth under Section 7.3, the following criteria shall apply as exceptions to the competitive solicitation requirements set forth under Table 2 for Professional Services where such requirements would otherwise apply: 7.4.1 For Professional Services estimated to cost $25,000 or less, staff may request a proposal from one (1) qualified Consultant. 7.4.2 For Public Works projects where the project design is scheduled in phases, the related Professional Services may be negotiated with the Consultant that performed the work for a prior phase, if (a) the Consultant performed satisfactory work on the prior phase(s) in terms of quality, schedule, and estimated design costs and (b) a satisfactory Contract can be negotiated. 7.4.3 For Professional Services in which it is impracticable to comply with the selection process because of the unique, exploratory, or experimental nature of the project, staff may request a proposal from one (1) qualified Consultant. 7.5 On Call Professional Services (Multiple Award Task Order Contracts) – The District may solicit RFPs for on-call professional services and enter agreements for on-call professional services. Entering into an agreement qualifies Consultant to perform services for the District on a task order basis, but it does not entitle Consultant to any compensation or a right to perform services on any scope of work or particular task order for the District. Page 131 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 10 of 26 When the District needs services for task(s), it will submit a scope of work to Consultant requesting task proposals. If Consultant’s task proposal is selected by the District, Consultant represents and warrants to District that it is fully qualified and available to perform the services for, and as requested by, the District. 7.6 Rejecting Competitive Responses - In response to an Invitation to Bid, RFQ, or RFP, the District may reject a bid or other response which is in any way incomplete, irregular, amplified, unqualified, conditional, or otherwise not in compliance with the solicitation documents in all material respects and in accordance with law. The District may (a) waive any informality, irregularity, immaterial defects, or technicalities in any bids or other responses received; and/or (b) cancel an Invitation for Bid or RFP/RFQ, or reject all bids or responses for any other reason, which indicates the cancellation or rejection of all bids or responses is (i) in the best interest of the District, and (ii) in accordance with law. Rejection of all bids or responses or cancellation of competitive solicitations, including determinations to re-bid, or re-solicit are subject to the same level of authority which is required to award a Contract as provided under Table 1, and as required by law. 7.7 Awarding Contracts – Consistent with Section 11.0 below, the District reserves the right to award Contracts based upon the best interests of the District as determined by the District in its sole discretion. 8.0 Change Orders 8.1 Change Orders may be issued from time to time as required by changes in the specifications or conditions of a project, services performed, or materials to be issued. 8.1.1 Change Orders – PO Only - Change Orders up to 10% (to a maximum additional $1,000) of the original PO amount may be issued by the appropriate Department Manager without further approvals. A revised Purchase Order Requisition must be completed and approved at the appropriate authorization levels under Table 1 for any Change Order request exceeding the original amount by more than 10% or the $1,000 limit. 8.1.2 Change Orders – Formal Contracts and Amendments 8.1.2.1 For Contracts and/or Amendments under $75,000:  Change Orders up to 10% of the original Contract amount can be approved by the appropriate authorization levels as outlined in Table 1 up to a maximum total Contract amount of $75,000 without Board approval.  Board approval is required for Change Order requests exceeding the original Contract amount by more than 10%, or resulting in a total Contract amount over $75,000. 8.1.2.2 For Contracts and/or Amendments $75,001 and over:  Change Orders up to 10% (to a maximum additional $75,000) of the original Contract amount can be approved by the appropriate authorization levels as outlined in Table 1 without Board approval. Page 132 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 11 of 26  Board approval is required for Change Order requests exceeding the original Contract amount by more than 10%, or resulting in a $75,000 increase. 8.1.3 Change Order Exceeding Limits A Change Order exceeding the Change Order limits set forth in this article may be authorized by the General Manager prior to Board approval if, in the General Manager’s determination, any of the following circumstances exist: 8.1.3.1 A delay in Change Order authorization could result in a negative financial impact to the District. 8.1.3.2 A delay in Change Order authorization could result in damage to or impairment of the operations of a District facility. 8.1.3.3 An Emergency exists which requires immediate work/services. The Board shall be notified of any Change Order authorization exceeding the General Manager’s authorization limit at the next regularly scheduled Board meeting. 9.0 Ethical Procurement Conflict of Interest 9.1 Board members, District officers, and employees shall not be financially interested in any Contract made by them in their official capacity. (Government Code Sections 1090 and 1091.5). Board Members, District officers, and employees shall not participate in any way to influence a governmental decision in which he/she knows or has reason to know that he/she has a financial interest. (Government Code Section 87100 et seq.) 9.2 Any District employee (other than Administrative Personnel not under Designated Positions in the District’s Conflict of Interest Code) authorized under this Policy to make or enter into purchases on behalf of the District will complete a Statement of Economic Interests (Form 700) and comply with the District’s Conflict of Interest Code. 9.3 Confidential or proprietary information must be handled with due care and proper consideration of ethical and legal ramifications and governmental regulations. 9.4 Purchasing activities must be performed in accordance with all applicable laws and District policies. 9.5 Any employee/individual who violates the standards set forth in this Section may be subject to disciplinary action consistent with the District’s Ethics Policy and Employee Memorandum of Understanding or Personnel Manual in effect. 10.0 Emergency Procurement Procedures 10.1 In the event that the District declares an Emergency, the District may procure the necessary equipment, Services, and Materials in response to that Emergency without following the purchasing procedures prescribed by this Policy. Page 133 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 12 of 26 10.2 General Manager Authority 10.2.1 The Board has authorized the General Manager, or their designee, to approve Emergency Procurements described in Section 10.1. 10.2.2 If the Emergency Procurement exceeds the General Manager’s approval authority, the General Manager, or their designee, shall report to the Board, at its next meeting, the reasons justifying why the Emergency did not permit time to comply with the District’s purchasing requirements and why the purchase was necessary to respond to the Emergency. 10.3 Board Ratification 10.3.1 After the District makes an Emergency Procurement, it shall make a finding based on substantial evidence set forth in the minutes of its meeting that the Emergency did not permit time to comply with the District’s purchasing requirements, and that the purchase was necessary to respond to the Emergency. 10.4 Federally Declared Emergencies; Procurement and Contracting Requirements 10.4.1 In the event of an Emergency declared by the President of the United States, the District must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for Contract costs for eligible work. FEMA funding is governed by Title 2 of the Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 10.4.2 Federal Emergency Procurement Procedures 10.4.2.1 Micro Purchases  Purchases within the micro-purchase threshold (e.g. currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the District considers, in its sole discretion, the price to be reasonable.  To the extent practicable, the District must distribute micro-purchases equitably among qualified suppliers. 10.4.2.2 Small Purchases  Purchases within the simplified acquisition threshold (e.g. currently set at purchases of $250,000 or less) shall not be required to be formally bid.  Price quotations must be received from no less than three (3) sources. 10.4.2.3 Formal Sealed Bidding  Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $250,000, or as Page 134 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 13 of 26 may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR Section 2.101.  The District must publicly advertise the invitation for Bids and publicly open all bids at the time and place prescribed in the Invitation to Bid.  Any Contracts awarded pursuant to this procedure may be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. 10.4.2.4 Solicitation of Competitive Proposals  When the nature of a Procurement does not lend itself to formal, sealed bidding (e.g. Professional Services), the District may solicit competitive proposals.  A Request for Proposals (RFP) must be publicly advertised, and the District must solicit proposals from an adequate number of sources. The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weight need not be disclosed.  Any Contract awarded based on the competitive proposal Procurement process cannot be based exclusively on price or price- related factors.  If a Contract is awarded, it may be to the responsible firm whose proposal is most advantageous to the District (“best value”), with price and other factors considered. 10.4.3 Federal Emergency Noncompetitive Procurements 10.4.3.1 Contracts may be procured through a noncompetitive proposal only when:  The item is only available from a single source;  The public exigency or Emergency for the requirement will not permit a delay resulting from competitive solicitation;  The District authorizes noncompetitive proposals, as otherwise permitted by the Purchasing Policy; or  Competition is deemed inadequate after the solicitation of a number of sources. 10.4.4 Federal Emergency Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms 10.4.4.1 The District must conduct all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth in 2 CFR Section 200.321. Page 135 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 14 of 26 10.4.4.2 The District has developed Contract templates that include requirements for bidders to take those affirmative steps to secure involvement by those firms, as outlined in 2 CFR Section 200.321(b). 10.4.5 Federal Emergency Cost or Price Analysis 10.4.5.1 The District shall perform a cost or price analysis in connection with every Procurement, including Contract modifications, in excess of the simplified acquisition threshold. While the method and degree of analysis depends on the facts surrounding the particular Procurement, the District must, at a minimum, make independent estimates before receiving bids or proposals. 10.4.5.2 The District shall negotiate profit as a separate element of the price for each Contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR Section 200.323(b). 10.4.6 Federal Emergency Payment Procedures 10.4.6.1 Contracts entered into pursuant to this Section 10.4 shall utilize only fixed- price, cost-reimbursement, or, to a limited extent, time and materials payment methods. 10.4.6.2 Time and Materials (T&M) Contracts  T&M Contracts should be used rarely, and the use of T&M Contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the District cannot define a clear scope of work.  The District shall only enter into a T&M Contract if all of the following apply: - No other Contract was suitable; - The contract has a guaranteed maximum price that the Contractor exceeds at its own risk; and - The District provides a high degree of oversight to obtain reasonable assurance that the Contractor is using efficient methods and effective cost controls.  The District must define the scope of work as soon as possible to enable Procurement of a more acceptable type of Contract (i.e., non-T&M). 10.4.6.3 Separate Invoicing  All purchases made during a proclaimed Emergency shall require separate invoicing from routine (i.e., non-Emergency related) purchases. All invoices shall state the Services or Materials provided Page 136 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 15 of 26 and shall specify where the Services or Materials were delivered. All invoices shall specify the location(s) where the Services or Materials were used, if possible. Any invoice which fails to properly identify the Emergency nature of the purchase and provide details as to the date(s) and location(s), as appropriate, shall not be paid until such information is provided by the vendor and re-submitted in correct form. 10.4.6.4 Auditing of Invoices for Debris Removal  All invoices for debris clearance and removal shall be audited prior to payment to the vendor. Vendors shall be notified of the requirement prior to award of any Contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide. 11.0 Procurement Procedures Pertaining to Federal Grants 11.1 In the event that the District is identified as a recipient or sub-recipient of a Federal Government Grant or any Pass-Through Federal Grant, the District will be required to comply with the Federal Uniform Guidance (2 C.F.R. Part 200) standards and procedures as listed in Exhibit B. This Guidance establishes requirements by grantees when procuring goods and services needed to carry out a Federal award. 12.0 County Water District Status 12.1 The District is a County Water District and therefore is not mandated by State law to competitively bid any purchases, including those for Public Works projects and/or capital expenditures. (Associated Builders & Contractors, Golden Gate Chapter, Inc. v. Contra Costa Water District (1995) 37 Cal.App.4th 468.) The District has discretion to enter into non-bid Contracts for Public Works, to procure Services and Materials, to contract for design-build work, to utilize job-order contracting and to enter into Cooperative Purchasing arrangements for the design, construction, and maintenance of Public Works, or undertake any other form of contracting determined to be in the District’s best interest, except as otherwise expressly restricted by law. Notwithstanding this lack of legal mandate and contractual discretion, District staff shall make a good faith effort to support the Competitive Selection Process described in Section 7. 13.0 Policy Revisions 13.1 This Policy will be maintained and revised by the General Manager or their designated representatives in consultation with the District’s legal counsel, subject to approval by the Board. This Policy will be reviewed on an annual basis and revisions will occur whenever applicable Federal, State, or local regulations change or otherwise as the need arises and in the discretion of the Board. Page 137 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 16 of 26 EXHIBIT A PROCUREMENT CARD POLICY 1.0 Purpose The Procurement Card Program was developed to allow designated full-time regular employees the capability to purchase, with predefined spending limits, certain types of items directly from the merchant thus reducing the cost associated with low-value purchasing activity. The purpose of this policy is to identify the conditions in which employees will be issued a Procurement Card and the rules for its use. 2.0 General Information Authorization to use this Card is restricted to the CARDHOLDER ONLY and MAY NOT BE USED FOR PERSONAL PURCHASES. 2.1 Employees will not use District Procurement Cards for personal expenses even if the intent is to reimburse the District later. 2.2 Procurement Cards must not be used for purchases when the cardholder has personal interest in the merchant or knowledge that a purchase would create a conflict of interest. 2.3 Before receiving a Procurement Card, employees will sign a “Cardholder Procurement Card Agreement” and receive a copy of the Policies and Procedures setting forth their obligations under this program. 2.4 The Procurement Card is supplemented to the procurement process. As with other procurement methods the following conditions must be met when using the Procurement Card: 2.4.1 The Procurement Card should be used whenever possible in lieu of petty cash or low dollar Requisitions from point of sale vendors. 2.4.2 Purchases shall not be split to circumvent transaction limits as set in Table 1 of this Procurement Policy. 2.4.3 Each single purchase may be comprised of multiple items, but the total including tax and freight cannot exceed the single purchase dollar limit on the Procurement Card. 2.4.4 Every purchase using the Procurement Card must adhere to all provisions of the Procurement Policy. 3.0 Procurement Card Role Definitions 3.1 Cardholder – The cardholder is the District employee whose name appears on the Procurement card. 3.2 Approver: The Approver is the person who is responsible for reviewing the charges for a group of cardholders to ensure that purchases are appropriate and allowed. Page 138 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 17 of 26 3.3 Program Administrator: The Program Administrator provides overall administration and oversight of the Procurement Card program. 4.0 Responsibilities 4.1 Cardholders: Cardholders Safeguard the Procurement Card, provide itemized receipts for all transactions, allocate the transactions, and sign off on the transactions in a timely basis. 4.2 Approvers: Approvers review transactions of cardholders for adherence to policies and procedures, ensure that all transactions are properly coded, and all disputed charges are correctly reported. 4.3 The Cardholder and Approver are required to review and approve the individual cardholder transactions and submit to Accounts Payable within the established time frame specified by Finance Manager. This is critical to allow Accounts Payable to make payment within specified time limits. 4.4 Failure to meet approval deadlines can result in the following: 4.4.1 First Failure – Verbal/electronic warning. 4.4.2 Second Failure – Written warning and notification to the appropriate Department Manager and possible suspension of card privileges. 4.4.3 Third Failure – Suspension of card privileges. Restoration of card privileges requires approval by the Finance Manager. 5.0 Procurement Audits To ensure the continued success of the Procurement Card Program, periodic, random audits will be performed by the Finance Department. The purpose of the audits will be to ensure the cardholders are adhering to established policies and procedures. 6.0 Use of Procurement Card for Travel and Meals Procurement cards may be used for approved travel in accordance with the District’s travel policy. 7.0 Card Restrictions The Procurement Card is not to be used for services of any kind, leases, or repairs excluding auto when traveling, due to insurance requirements and the complexity of IRS 1099 reporting. Department Managers may apply additional restrictions on card use. It is the responsibility of the cardholder to know what their department’s restrictions are. 8.0 Misuse of a Procurement Card 8.1 The following situations are a few examples of “misuse” of a Procurement Card: 8.1.1 Purchases using the Procurement Card for personal benefit of the employee. Page 139 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 18 of 26 8.1.2 Assignment or transfer of an individual Procurement Card to an unauthorized person. 8.1.3 Purchases from family, friends or relatives where there is personal gain or a conflict of interest, perceived or real. 8.2 Any variance, misuse, and/or violation of the policy and processes set forth will be considered improper use of the card. This may result in card cancellation, disciplinary action, up to and including termination. 9.0 Return of Merchandise In the event the cardholder determines that an item must be returned for any reason, the item and credit card receipt must be returned to the merchant/vendor as soon as possible. At no time is the cardholder allowed to accept a store gift card or cash in lieu of a credit adjustment to the Procurement Card. Cardholder is responsible for allocating and signing off on both the purchase and the credit transactions in a timely manner. 10.0 Disputes All transactions should be monitored for validity and disputed transactions must be reported to the Program Administrator. To process a dispute, consult the Program Administrator. 11.0 Lost or Stolen Cards When a Procurement Card is lost or stolen during normal business hours the Cardholder must notify their Approver and the Program Administrator immediately. If it is after hours the Cardholder must notify the issuing bank directly. 12.0 Separation, Transfer or Revocation of Card Privileges Upon leaving the District, transferring to another Department or loss of Procurement Card privileges, the Cardholder must return their Procurement Card to Human Resources. Concurrent with surrendering the card, the cardholder must deliver documentation to their supervisor of all outstanding transactions. The General Manager, Assistant General Manager, or Department Managers have absolute discretion to suspend or revoke a Cardholder’s privileges at any time and for any reason. Page 140 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 19 of 26 EXHIBIT B FEDERAL REQUIREMENTS 1.0 Regulations for Procurement of Property or Services Stemming from Federal Aid 1.1 This section shall apply to the awarding of sub-grants and contracts by the District stemming from federal grants to the District. This section shall have the same application on the awarding of sub-grants and contracts by the District stemming from state, county or other non-federal government entity grants originating as federal grants. 2.0 Procurement Standards 2.1 The District shall maintain a contract administration system which ensures contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders. 2.2 The District shall maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. No employee, officer or agent of the District shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: 2.2.1 The employee, officer or agent; 2.2.2 Any member of his or her immediate family; 2.2.3 His or her partner; or 2.2.4 An organization which employs, or is about to employ, any of the above, has a financial or other interest in or a tangible personal benefit from a firm considered for award. 2.3 The District’s officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to sub- agreements. Such a conflict will not arise where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. The District’s standards of conduct provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the District. 2.4 The District shall not enter into a contract with a non-Federal entity has a parent, affiliate, or subsidiary organization that is not a state, local government or Indian tribe, unless the non-Federal entity maintains written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest mean due to relationships with a parent company, affiliate, or subsidiary organization, the non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization. 2.5 The District shall avoid acquisition of unnecessary or duplicative items. Consideration will be given to consolidating or breaking out procurements to obtain a more economic purchase. Where appropriate, an analysis will be made of lease versus purchase Page 141 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 20 of 26 alternatives, and any other appropriate analysis to determine the most economical approach. 2.6 The District shall consider entering into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. 2.7 The District shall consider using Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs. 2.8 The District shall consider using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure its essential function is provided at the overall lower cost. 2.9 The District shall make awards only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance and financial and technical resources. 2.10 The District shall maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection and the basis for the contract price. 2.11 The District shall use time and material type contracts only: 2.11.1 After a determination is made that no other contract is suitable; and 2.11.2 If the contract includes a ceiling price the contractor exceeds at their own risk. 2.12 The District alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims. These standards do not relieve the District of any contractual responsibilities under its contracts. 3.0 Competition 3.1 The District will conduct procurement transactions in a manner providing full and open competition. To ensure objective contractor performance and eliminate unfair competitive advantage, contractors developing or drafting specifications, requirements, statements of work, or invitations for bids or requests for proposals shall be excluded from competing for such procurements. 3.2 The District shall conduct procurements in a manner prohibiting the use of statutorily or administratively imposed in-state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criteria provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. Page 142 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 21 of 26 3.3 The District shall have written procedures for procurement transactions. These procedures will ensure that all solicitations: 3.3.1 Incorporate a clear and accurate description of the technical requirements for the material, product or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equal description may be used to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors shall be clearly stated; and 3.3.2 Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. 3.4 The District shall ensure prequalified lists of persons, firms or products that are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The District shall not preclude potential bidders from qualifying during the solicitation period. 4.0 Methods of Procurement to be Followed The District shall use one of the following methods of procurement: 4.1 Procurement by Micro-Purchases. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro- purchase threshold as set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions) and adjusted periodically for inflation. As of the date of this ordinance, the micro-purchase threshold is $10,000. 4.2 Procurement by Small Purchase Procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies or other property that do not cost more than the simplified acquisition threshold as set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions) and in accordance with 41 U.S.C. 1908 and periodically adjusted for inflation. If small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources. As of the date of this ordinance, the simplified acquisition threshold is $250,000. 4.3 Procurement by Sealed Bids (Formal Advertising). Bids are publicly solicited and a firm- fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price. 4.3.1 For sealed bidding to be feasible, the following conditions should be present: 4.3.1.1 A complete, adequate, and realistic specification or purchase description is available; Page 143 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 22 of 26 4.3.1.2 Two or more responsible bidders are willing and able to compete effectively for the business; and 4.3.1.3 The procurement lends itself to a firm-fixed-price contract and the selection of the successful bidder can be made principally based on price. 4.3.2 If sealed bids are used, the following requirements apply: 4.3.2.1 The invitation for bids will be publicly advertised and bids shall be solicited from an adequate number of known suppliers, providing them sufficient time prior to the date set for opening the bids; 4.3.2.2 The invitation for bids, which will include any specifications and pertinent attachments, shall define the items or services for the bidder to properly respond; 4.3.2.3 All bids will be publicly opened at the time and place prescribed in the invitation for bids; 4.3.2.4 A firm-fixed-price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost and life cycle costs shall be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and 4.3.2.5 If there is a sound documented reason, any or all bids may be rejected. 4.4 Procurement by Competitive Proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed- price or cost-reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply: 4.4.1 Requests for proposals shall be publicized and identify all evaluation factors including relative importance. Any response to publicized requests for proposals shall be honored to the maximum extent practical; 4.4.2 Proposals will be solicited from an adequate number of qualified sources; 4.4.3 The District shall conduct technical evaluations of the proposal received and for selecting awardees; 4.4.4 Awards will be made to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and 4.4.5 The District may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is Page 144 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 23 of 26 selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort. 4.5 Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances applies: 4.5.1 The item is available only from a single source; 4.5.2 The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; 4.5.3 The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in a written request from the District; or 4.5.4 After solicitation of multiple sources, competition is determined inadequate. 4.6 Contracting with Small and Minority Businesses, Women’s Business Enterprises and Labor Surplus Area Firms. 4.6.1 The District shall take all necessary affirmative steps to assure that minority businesses, women’s business enterprises and labor surplus area firms are used when possible. 4.6.2 Affirmative steps include: 4.6.2.1 Placing qualified small and minority businesses and women’s business enterprises on solicitation lists; 4.6.2.2 Assuring that small and minority businesses and women’s business enterprises are solicited whenever they are potential sources; 4.6.2.3 Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women’s business enterprises; 4.6.2.4 Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and women’s business enterprises; 4.6.2.5 Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and 4.6.2.6 Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in subsections 4.6.2.1 through 4.6.2.6 of this section. Page 145 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 24 of 26 4.7 Contracts Cost and Price 4.7.1 The District shall perform a cost or price analysis in every procurement action exceeding the simplified acquisition threshold including contract modifications. The method and degree of analysis will be dependent on the facts surrounding each procurement situation. As a starting point, the District shall make independent estimates before receiving bids or proposals. 4.7.2 Costs or prices based on estimated costs for contracts under the Federal award will be allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the District under Subpart E – Cost Principles of Title 2, Subtitle A, Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards). 4.7.3 The cost plus a percentage of cost and percentage of construction cost methods of contracting shall not be used. 4.8 Federal Awarding Agency or Pass-Through Entity Review 4.8.1 The District shall make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for purchase. 4.8.2 The District shall make available upon request, for the Federal awarding agency or pass-through entity pre-procurement review, procurement documents, such as requests for proposal or invitations for bids, or independent cost estimates when: 4.8.2.1 The District’s procurement procedures or operation fails to comply with the procurement standards of Title 2, Subtitle A, Part 200, Subsection 200.324; 4.8.2.2 The procurement is expected to exceed the simplified acquisition threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation; 4.8.2.3 The procurement, which is expected to exceed the simplified acquisition threshold, specifies a “brand name” product; 4.8.2.4 The proposed contract is more than the simplified acquisition threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or 4.8.2.5 A proposed modification changes the scope of a contract or increases the contract amount by more than the simplified acquisition threshold. 4.8.3 The District may be exempted from the pre-procurement review in subsection 4.8.2 above if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards set forth in Title 2, Subtitle A, Part Page 146 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 25 of 26 200, or the District self-certifies compliance with such standards if self-certification is permitted by the Federal awarding agency or pass-through entity. 4.9 Bonding Requirements. For public projects, the District shall require bid guarantees, performance bonds, and payment bonds consistent with Title 2, Part 200, Section 200.325 of the Code of Federal Regulations. 4.10 Contract Provisions. The District’s contracts shall contain the provisions in Appendix II to Title 2, Subtitle A, Part 200 – Contract Provisions for non-Federal Entity Contracts Under Federal Awards, as applicable. Page 147 of 171 YORBA LINDA WATER DISTRICT 3010-007-POL Page 26 of 26 PURCHASING POLICY ACKNOWLEDGEMENT I acknowledge that I have received and read the provisions contained in this Purchasing Policy (Policy). I agree to comply with all terms and conditions of the Policy. I understand that it is my responsibility to consult my supervisor or the Finance Department if I have any questions that are not answered in this Policy. I also understand that the provisions in this Policy are guidelines and may not address all circumstances that may arise. In such case, the Finance Department shall apply the Policy based on factors including but not limited to past practices and rules of statutory interpretation. Employee Printed Name Date Employee Signature Distribution: Employee’s Personnel File Page 148 of 171 ITEM NO. 10.4. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer SUBJECT: Elk Mountain Booster Pump Station Leak Repair RECOMMENDATION: That the Board of Directors authorize the General Manager to award a contract change order to T.E. Roberts to increase the Not To Exceed amount from $75,000 to $150,000 for a Time and Materials agreement, Job No. J-2023-33. FISCAL IMPACT: Budgeted: Yes Cost Estimate: Time and Materials Not To Exceed $75,000 Total Budget: $75,000 Change Order: Time and Materials Not To Exceed $150,000 Job No: J-2023-33 BACKGROUND: District staff identified a steady stream of water flowing from a french drain outlet located at the Elk Mountain Booster Pump Station. Operations and Engineering staff conducted several site investigations to determine the source of the water and have been unsuccessful. A plan was developed to conduct a more comprehensive investigation and repair the leak when water demands were low, utilizing the Camino de Bryant Waterline contractor who would be mobilized nearby. TE Roberts, the firm contracted to install the Camino de Bryant Waterline, agreed to investigate and repair the leak on a Time and Material basis for a Not To Exceed amount of $75,000, approved by the General Manager. TE Roberts started with chipping through the concrete in the pump station vault at the most likely source of the leak, the pump can for pump 2. Moisture was found, but the source of the leak was not evident at this location. TE Roberts then concentrated its efforts on excavating outside of the vault, including the pipeline from the Elk Mountain Reservoir to the pump station and the pump suction manifold and pipelines. On the 5th day of work, TE Roberts found the source of the leak, a 4-inch line that connects to a blow-off assembly and a low water cut-off assembly. Following the pipeline repair, TE Roberts will make sure that there are no other leak sources before starting site restoration. The additional work required to fix the leak may exceed the original authorization of $75,000. Staff is requesting an increase in the Not To Exceed amount to $150,000 to enable the contractor to complete the work as soon as possible before water demand increases. Staff will provide an update Page 149 of 171 on the project to the Board once the project has been completed and the total expenditure is known. PRIOR RELEVANT BOARD ACTION: On March 14, 2024, the Board approved filing the CEQA Notice of Exemption for this project. STRATEGIC PLAN INITIATIVES: G3.I2C - Evaluate and maintain sustainable operations. Page 150 of 171 ITEM NO. 10.5. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Bree Jozwiak, Administrative Assistant / Assistant Board Secretary SUBJECT: Nominations for OC LAFCO Regular Special District Member Seat RECOMMENDATION: That the Board of Directors consider nominating candidate(s) for election to OC LAFCO's Regular Special District Member Seat and designate two Directors to serve as the primary and alternate voting representatives in the associated election. BACKGROUND: The nomination period for the OC LAFCO regular Special District Member seat which term expires June 30, 2024 is now open. The Board has the option of nominating a candidate. Should the Board desire to do so, the attached form must be completed and returned no later than Monday, April 15, 2024, at 4:00 p.m. To date, the District has not received any requests for support of candidacy. Additionally, the appointment process is conducted by ballot and the Board needs to designate two Directors to serve as the District's primary and alternate voting representatives. The attached declaration form must be returned by the same date and time as the nomination form. ATTACHMENTS: 1. Correspondence from OC LAFCO Page 151 of 171 Orange County Local Agency Formation Commission | oclafco.org REGULAR MEMBERS CHAIR Donald P. Wagner County Member VICE CHAIR Wendy Bucknum City Member IMMEDIATE PAST CHAIR Douglass Davert Special District Member James Fisler Special District Member Derek J. McGregor Public Member Bruce Whitaker City Member VACANT County Member ALTERNATES Kathryn Freshley Special District Member Carol Moore City Member Lou Penrose Public Member VACANT County Member STAFF Carolyn Emery Executive Officer Scott Smith General Counsel 2677 North Main Street | Suite 1050 Santa Ana, CA 92705 Phone: 714.640.5100 | Fax: 714.640.5139 March 11, 2024 TO: Independent Special District, Presiding Officer (Delivered by email: c/o Clerk of the District) FROM: Carolyn Emery, Executive Officer SUBJECT: Nomination Period and Appointment Process for the OC LAFCO Regular Special District Member Seat The nomination period for the Orange County Local Agency Formation Commission (OC LAFCO) Regular Special District Member seat is now open. The OC LAFCO Executive Officer will accept nominations for this seat from March 11 through April 15, 2024. The current term for this seat expires June 30, 2024. The appointment process for the OC LAFCO special district seat is governed by Government Code Section 56332 and the Independent Special District Selection Committee Bylaws. In accordance with the statute and the Committee’s Bylaws, the appointment process is conducted by mailed ballot and attached to this notification are the following: (1) The “Declaration of Qualification to Vote” for designating the authorized regular voting member and alternate voting member, if applicable, of your district for this appointment process. This form must be returned to OC LAFCO no later than 4:00 p.m., Monday, April 15, 2024. Please note, in accordance with the Independent Special District Selection Committee Bylaws, if OC LAFCO does not receive the form by this date, your district will be ineligible to vote; and (2) The “2024 Nomination Form” for submitting a candidate’s name for the OC LAFCO Regular Special District Member seat. If your district is nominating a candidate, the form must be filled out completely and returned to OC LAFCO by 4:00 p.m., Monday, April 15, 2024. Candidate resumes or other supplemental information may be attached to the nomination form, and these materials will be distributed with the ballot. Completed declaration and nomination forms may be submitted to OC LAFCO electronically or by USPS mail at: Page 152 of 171 Orange LAFCO| Nomination Period and Appointment Process: OC LAFCO Regular Special District Member Seat Page | 2 Electronically: Email: ccarter-benjamin@oclafco.org USPS Mail: Orange County Local Agency Formation Commission Attention: Cheryl Carter-Benjamin, Commission Clerk 2677 North Main Street, Suite 1050 Santa Ana, CA 92705 For your reference, the schedule of key dates for the appointment process is shown below: Should you have any questions on this matter, you may contact OC LAFCO Commission Clerk Cheryl Carter-Benjamin at (714) 640-5100 or by email at ccarter-benjamin@oclafco.org. Attachments: 1. Declaration of Qualification to Vote 2. 2024 Nomination Form – Regular Special District Member Seat cc: Special District General Managers Appointment Process Schedule for OC LAFCO Regular Special District Member Seat ACTION DATE LAFCO Executive Officer emails notification letter with nomination and Declaration of Qualification to Vote forms to independent special district presiding officers (c/o district clerk) and general managers. March 11, 2024 Deadline for submitting nomination and declaration forms to OC LAFCO by 4:00 p.m.* April 15, 2024 (4 PM) Ballots emailed to special district presiding officers/designees (c/o district clerk). May 6, 2024 Ballots due to OC LAFCO by 4:00 p.m. June 10, 2024 (4 PM) OC LAFCO staff (or designee) tabulates ballots and announces results. June 17, 2024 Oath of Office Administered. July 10, 2024 (Commission Hearing) * Pursuant to Government Code Section 56332(c)(1), if only one candidate is nominated for a vacant seat, that candidate shall be deemed selected with no further proceedings. Page 153 of 171 DECLARATION OF QUALIFICATION TO VOTE Trudi Kew Desroches Presiding Officer Yorba Linda Water District I, ___________________________________,* hereby attest that _____________________________** has been authorized by the Board of _____________________________________to vote in the OC LAFCO Special District Selection Committee election as the regular voting member. The Board also designated _________________________ **as the alternate voting member. Name and Title*: _____________________________________ Signature*: ________________________________ Date*: __________________________ * Declaration MUST be completed and signed by either Board President or Board Secretary. ** Must be a member of the Board. In accordance with the Independent Special District Selec�on Commitee Bylaws, completed declarations must be received by OC LAFCO by 4:00 PM, Monday, April 15, 2024. Declarations may be submitted electronically by email or USPS mail at: (1) Email: ccarter-benjamin@oclafco.org (2) USPS Mail: Orange County Local Agency Formation Commission 2677 North Main Street, Suite 1050 Santa Ana, CA 92705 Attn: Cheryl Carter-Benjamin Page 154 of 171 Orange County Local Agency Formation Commission (OC LAFCO) 2024 NOMINATION FORM NOMINEE INFORMATION FOR REGULAR SPECIAL DISTRICT MEMBER SEAT: NAME: _____________________________________________________________ TITLE: ______________________________________________________________ DISTRICT: ______________________________________________________________  Check box if resume or statement of qualifications is attached. SPECIAL DISTRICT SELECTION COMMITTEE MEMBER SUBMITTING NOMINATION (Must be the presiding officer or a designated alternate board member.) NAME: DATE: _____________________ SIGNATURE: TITLE: DISTRICT: A resume or other supplemental information about the nominee may be included and will be distributed with the ballot. The completed nomination form and any supplemental information must be returned to OC LAFCO by 4:00 p.m., Monday, April 15, 2024 and may be submitted electronically or by USPS to:  Electronically Email: ccarter-benjamin@oclafco.org  USPS Mail Orange County Local Agency Formation Commission Attention: Cheryl Carter-Benjamin, Commission Clerk 2677 North Main Street, Suite 1050 Santa Ana, CA 92705 Nomination forms or candidate information received after the deadline will not be considered in part to the nomination process conducted by OC LAFCO. Page 155 of 171 ITEM NO. 10.6. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Proposed Changes to Board Meeting Dates and/or Times RECOMMENDATION: That the Board of Directors (1) consider shifting the time of the Board meeting on Thursday, May 16, 2024 to 9:30 a.m. to accommodate attendance at the Yorba Linda Mayor's Prayer Breakfast, (2) consider scheduling the Directors' tour of capital improvement projects following the budget workshop on Thursday, May 30, 2024, and (3) consider rescheduling/canceling the Board meeting on Thursday, June 13, 2024 at 8:30 a.m. to accommodate attendance at the AWWA Conference in Anaheim. BACKGROUND: As the Yorba Linda Mayor's Prayer Breakfast has been scheduled for Thursday, May 16, 2024 at 6:45 a.m., the Board may want to consider shifting the time of the Board meeting scheduled the same day from 8:30 a.m. to 9:30 a.m. Additionally, staff would like to propose conducting the Board's tour of capital improvement projects following the budget workshop on Thursday, May 30, 2024 if the Directors' schedules allow. And lastly, the Board may want to consider rescheduling the meeting on Thursday, June 13, 2024 to accommodate attendance at the AWWA Conference in Anaheim (https://www.awwa.org/ace). This conference provides valuable educational sessions for water leaders and professionals which may be of interest to the Directors. Further, staff will be facilitating a tour of the District's PFAS Water Treatment Plant for 48 conference attendees and 20 ACWA representatives that same morning from 9:00 - 11:00 a.m. The tour will include an introductory presentation and tour of the SCADA Room and PFAS Treatment Plant, followed by a question and answer session. Page 156 of 171 ITEM NO. 11.1. AGENDA REPORT MEETING DATE: April 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 March SAWPA Commission Tue, Mar 19 9:30 AM CalMutuals Board Tue, Mar 19 2:00 PM Barbre Yorba Linda City Council Tue, Mar 19 6:30 PM Hawkins Brea City Council Tue, Mar 19 7:00 PM Lindsey Placentia City Council Tue, Mar 19 7:00 PM DesRoches MWDOC Board Wed, Mar 20 8:30 AM Lindsey OCWA Meeting Wed, Mar 20 11:30 AM OCWD Board Wed, Mar 20 5:30 PM DesRoches Wildfire Insurance Meeting Wed, Mar 27 6:00 PM Barbre/DesRoches/Hernandez/Lindsey OC San Board Wed, Mar 27 6:00 PM Hawkins YL Planning Commission Wed, Mar 27 6:30 PM Hawkins (As Needed) OCCOG Conference Thu, Mar 28 9:00 AM Hernandez April SAWPA Commission Tue, Apr 2 9:30 AM Yorba Linda City Council Tue, Apr 2 6:30 PM Barbre Brea City Council Tue, Apr 2 7:00 PM Hawkins MWDOC Board Wed, Apr 3 8:30 AM Lindsey OCWD Board Wed, Apr 3 5:30 PM DesRoches Legislative Call w/ Representative Young Kim Thu, Apr 4 2:30 PM Hernandez WACO Fri, Apr 5 7:30 AM MWDSC Board Tue, Apr 9 1:00 PM Financial Review Group Tue, Apr 9 4:30 PM DesRoches/Lindsey OC LAFCO Commission Wed, Apr 10 8:15 AM MWDOC Elected Officials Forum Wed, Apr 10 6:00 PM DesRoches/Lindsey/Hernandez YL Planning Commission Wed, Apr 10 6:30 PM Hawkins (As Needed) Page 157 of 171 ITEM NO. 11.2. AGENDA REPORT MEETING DATE: April 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 April 1, 2024. GENERAL MANAGER On March 7th, I attended a joint seminar hosted by the Society of American Military Engineers (SAME) Orange County Post and the Professional Environmental Management Agency (PEMA) on Per- and Polyfluoroalkyl Substances (PFAS). A panel discussed the impact of PFAS on federal entities, local water utilities, and regulatory agencies. Subject-matter experts from Naval Facilities Command (NAVFAC), Orange County Water District (OCWD), and the Santa Ana Regional Water Quality Control Board (SARWACB) discussed the PFAS challenges facing their respective agencies. The seminar provided an excellent opportunity to network with industry experts as well as local contractors who are working diligently to address groundwater contamination in our SoCal aquifers. On March 12th, William Polly from Municipal Water Leader magazine interviewed me for an upcoming piece in their May issue. Mr. Polly had me introduce readers to the Yorba Linda Water District, including the history and construction of our heli-hydrants. Upon publication, I will share the article on our social media platforms in order to educate the public, particularly those in our service area. Water Strategies LLC, which owns Municipal Water Leader magazine, is based out of Washington D.C. On March 18th, at the invitation of Director Roger Yoh and GM John Kennedy, Director Hernandez and I visited the Orange County Water District (OCWD) in order to introduce our newest Director to OCWD and tour the Groundwater Replenishment System (GWRS). GM Kennedy provided an OCWD 101 to Director Hernandez discussing: history, policies, budget, capabilities and initiatives. During the tour, Director Hernandez observed all the water treatment processes (microfiltration, reverse osmosis and ultraviolet light) before enjoying a taste test of the treated recycled water! On March 20th, I attended the monthly Yorba Linda Chamber of Commerce (YL CoC) Board meeting. Regarding the YLWD, the YL CoC Board is very interested in our Main Street Sewer Line Project. I plan to keep the Chamber informed of our progress on the project over the coming weeks. Once again, we were proud to support Mayor Tara Campbell and Council Member Janice Lim on March 27th for another Young Civic Leaders Academy (YCLA) Tour of the YLWD. High school students from the region received a quick overview of the water district before going on a tour of our PFAS Treatment Plant. After the tour, we conducted a career roundtable with YLWD staff members Page 158 of 171 from our accounting, production, public affairs and engineering departments. In support of our YLWD Strategic Plan, our participation in the YCLA helps encourage young leaders in our local area to consider future careers in the water industry. Finally, I joined our Board of Directors on March 27th at the Yorba Linda Library in order to participate in the City of Yorba Linda’s Wildfire Insurance meeting. At the meeting, Deputy Commissioner Julia Juarez from the Office of Insurance Commissioner Ricardo Lara provided an update to residents on insurance initiatives in the State of California. Ms. Juarez answered questions from the audience related to the insurance challenges in our local area. President DesRoches provided an excellent update to residents about what YLWD is doing to mitigate the wildfire threat – in particular, she discussed our two heli-hydrants in the eastern part of our service area and the third heli-hydrant we are constructing in partnership with the Metropolitan Water District. ADMINISTRATION / IT / PUBLIC AFFAIRS / SAFETY Information Technology ▪ New cybersecurity training for YLWD staff is being implemented. This training will offer a lower cost and a more robust program to help users remain vigilant against phishing and cyberattacks. ▪ Progress Update on 5-Year Equipment Replacement Program: In July 2019, the IT Department initiated a strategic initiative aimed at modernizing our technology infrastructure through a comprehensive replacement program. The implementation of a five-year computer replacement program is crucial to ensuring that our organization's technology remains up-to- date, secure, and fully capable of supporting our operations effectively. The bulk of YLWD's computers now fall within this 5-year cycle. ▪ The IT Department has successfully completed the initial assessment, budgeting and planning, and procurement phases for the first stage of the replacement. This involved carefully evaluating our existing hardware inventory, developing a comprehensive budget and timeline, and acquiring the necessary equipment to initiate the replacement process. Public Affairs ▪ On Sunday, March 17th, the PYLUSD’s REACH Foundation hosted their 12th annual 5k Shamrock ‘n Run at Yorba Linda Regional Park. The Public Affairs team, along with Production staff, hosted an informational booth and provided cups of drinking water to runners of all ages as they crossed the finish line. ▪ The Public Affairs team is preparing for even more exciting events in April: The J. Wayne Miller, Ph.D. Water Treatment Plant Dedication Ceremony, an Engineering-focused presentation for the bright scholars at Esperanza High School, President DesRoches’ Infrastructure Tour, bottled water donations to the Love Placentia organization, and hosting a booth and providing water at Love Yorba Linda’s Kick-off Rally. ▪ We are pleased to announce that Public Affairs Officer Joanna Gonzalez welcomed her new son to the world on March 28th. Jack Owen Barrington was born at one minute past noon. Mother and baby are doing well. ▪ In response to the Board’s request regarding the expiration date of the current contract with Communications LAB, the contract expires November 15th of 2024. ▪ Our annual open house is tentatively scheduled for Saturday, July 20th from 9 a.m. to noon. The Board will receive a SAVE THE DATE invitation. ▪ Attached is a monthly activity report and social media report from CommLAB. Page 159 of 171 ENGINEERING ▪ Diemer Heli-Hydrant: The Board of Directors inquired whether a shutdown of the Diemer Treatment Plant would be required for the construction of the new Heli-Hydrant. We have confirmed that NO interruption will be required. ▪ Elk Mountain Booster Pump Station: TE Roberts was tasked with investigating and fixing the leak at the Elk Mountain Booster Pump Station for a Not To Exceed cost of $75,000. After 5 days of excavation/drilling at and around the pump station, the contractor located the leak, a 4-inch line that connects to a blow-off assembly and a low water cut-off assembly. Following the pipeline repair, TE Roberts will make sure that there are no other leak sources before starting restoration of the site. The additional work required to address this issue will most likely increase the cost of the project above $75,000. This item will be included on the April 11th Board meeting agenda. ▪ Well 5 Rehabilitation: General Pump began removal of the well pump and appurtenances on April 1st and is scheduled to transport the equipment on April 2nd to its facilities to rehabilitate the equipment. ▪ Hidden Hills Booster Pump Station: SCE (Edison) installed the transformer on March 26th. This was a critical path item that will now enable the contractor to complete the project. ▪ Timber Ridge Booster Pump Station: SCE is reviewing the District’s electrical plans. Once approved, the electrical work can move forward. ▪ Septic to Sewer Study: District staff met with Dopudja and Wells on April 1st to discuss the project and data request. Dopudja and Wells will provide a project update to the Board at the April 11th Board meeting. ▪ Highland Reservoir Access Road: Psomas is preparing the right of way documents to be included as Agreement exhibits. These documents are expected to be completed in late May. Psomas has reached out to the property owners to keep them apprised of the District’s plans regarding the roadway improvements. District staff will meet with Mr. Diaz and his team on April 3rd to discuss the project. A meeting with the Board Review Group will be scheduled soon. ▪ The PFAS Water Treatment Plant Pre-Filter #4 was delivered from the factory and installed on Page 160 of 171 April 2nd. This pre-filter had to be refurbished and factory tested. The refurbished pre-filter will have a one-year warranty. FINANCE ▪ Staff met with PFM staff to discuss the possibility of the District having positive arbitrage status due to the yield we are receiving from the structured investment of bond proceeds. The staff is working with PFM to forecast this possibility. ▪ In preparation for the upcoming year-end audit, the Finance Team met with Debtbook - the District’s consultant for compliance of GASB’s 87 and 96, to discuss the process for determining the basis of the annual calculations in preparation for the FYE2024 audit review. ▪ ACH Process – Accounting staff has been in discussion with Cogsdale to determine the most fitting and appropriate process by which to implement an ACH process for the distribution of vendor payments. Such discussions include the creation of a prototype in GP for ACH and accounts payable virtual card. Discussions have also included the development of appropriate internal controls that would protect the District and its staff. ▪ Staff worked with Lynn Love and Yolanda Mates to structure the District’s general checking account, along with a new money market fund, to offset the proposed increase of banking fees by earning a rate of return of approximately 4.92% from the money market. ▪ Attached is a graph with the District's historical water consumption for the past 10 years as requested during the last Board budget workshop. The collection status of the Capital Finance Charge is as follows. There has been no significant change since February. 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% $1,784,097 57.2% # 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% $330,055 77.5% HUMAN RESOURCES / RISK MANAGEMENT ▪ We currently have an active recruitment for a Part-time Engineering Intern which closed on April 1st. We received 36 applications for the intern position. Additionally, we anticipate recruitments to fill two vacant positions on the Maintenance Team in the coming weeks. OPERATIONS ▪ The Board of Directors previously requested that Operations investigate the possibility of installing solar panels over parking areas in order to meet the District's power demands. After an extensive study with a consultant, no such installation is recommended at this time. Due to the District’s very high power demands (treatment plant and well pumps), the power generated from a solar installation would be insufficient to meet any substantial part of the demand, and the expense of such installation would far outweigh any benefit. Page 161 of 171 ATTACHMENTS: 1. 10 Year Historic Consumption Data 2. CommLAB Monthly Report 3. CommLAB Social Media Report Page 162 of 171 - 5,000 10,000 15,000 20,000 25,000 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 AC R E - F E E T 10 YR HISTORICAL CONSUMPTION IN AF BUDGET TO ACTUAL Budget AF Actual AF Page 163 of 171 March Activity Report TO:Brianna De La Cruz, Public Affairs Specialist, Yorba Linda Water District FROM:Diego Teran, Sr. Account Manager, Communications LAB DATE: March 21 2024 RE: Current communications projects Below are highlights of current Communications Lab projects for Yorba Linda Water District: Strategy •On March 5, the agency met with Brianna De La Cruz and Daniel Watts to plan Social Media processes and expectations, as well as planning for the upcoming J. Wayne Miller, Ph.D. Water Treatment Plant Dedication Ceremony and other special events. Social Media •Agency programmed content for March and submitted copy of upcoming editorial calendar from March 15-April 30. •Agency to post infrastructure content in at least 50 percent of upcoming social media posts. Additionally, in order to increase views and engagement, some content will be boosted according to client’s budget. Audiovisual Production •Agency committed to support with audiovisual production, including drone shots for social media of Yorba Linda Water District Facilities. •Agency to film SCADA center virtual tour video using drone footage and more. Special Events •Agency was notified about J. Wayne Miller, Ph.D. Water Treatment Plant Dedication Ceremony taking place on April 16. Agency is updating punch list with logistics, audiovisual, food, and other elements. •Additionally, agency provided artwork for Constant Contact invitation of J. Wayne Miller, Ph.D. Water Treatment Plant Dedication Ceremony and prepared emails to be sent to guests on week of March 18. Additionally, agency is finalizing artwork and will print event program. •Agency was notified of Open House potentially taking place in July. To that extent, agency provided video recap and punch list from 2022 Open House. Additionally, agency committed to assist with graphic design, audiovisuals, logistic support, and more. Page 164 of 171 From: Victoria Castro, Social Media Manager, Communications LAB To: Brianna De La Cruz, Public Affairs Specialist, Yorba Linda Water District Date: April 2, 2024 Re: Social Media Report // Jan - Mar 2024 SOCIAL MEDIA REPORT 01/01-03/29 Page 165 of 171 SU MMAR Y R EP ORTSUMMARY REPORT *Q1 statistics for each respective category are shown in gray next to Q4 statistic. FACEBOOK P A G E R E A C H P A G E V I S I T S F O L L O W E R S 2,100 792 851 F O L L O W E R S P A G E V I S I T S 971 P A G E R E A C H 661 1,288 I M P R E S S I O N S N E W F O L L O W E R S 594 P A G E V I E W S 10,072 67 INSTAG RAM LINKEDIN PAGE REACH 2,431 671 838 1,043 700 1,249 641 11,282 69 Q 4 S T A T S Q 4 S T A T S Q 4 S T A T S TWITTER I M P R E S S I O N S F O L L O W E R S 1,900 623 2,000 599 Q 4 S T A T S Facebook Instagram Twitter Linkedin Jan Feb Mar 0 200400600 800 10001200 Q 1 - T O D A Y S T A T S Q 1 - T O D A Y S T A T S Q 1 - T O D A Y S T A T S Q 1 - T O D A Y S T A T S Page 166 of 171 TOP FACEBOOK POST International Women’s Day Reach: 219 Engagement: 15 Impressions: 235 TOP POSTS BY PLATFORM TOP TWEET TOP LINKEDIN POST World Wetlands Day Impressions: 198 Retweets: 0 Engagement: 5 Engineers Week Impressions: 1,915 Clicks: 248 CTR: 12.95% TOP INSTAGRAM POST Board Director: Gene Hernandez Reach: 256 Engagement: 32 Impressions: 322 Page 167 of 171 Linkedin Jan Feb Mar0 50 100150200250300 Facebook Jan Feb Mar0 200 400 600 800 1000 1200 Instagram Jan Feb Mar 0100200300 400 500600 Twitter Jan Feb Mar 0 200 400 600 800 TOTAL REACH BY PLATFORM PAGE REACH BY INDIVIDUAL PLATFORMS PAGE REACH BY TOTAL PLATFORMS January to March 2024 1 2 0 0 5 5 1 2 5 6 4 5 7 4 8 4 5 5 9 4 5 9 7 9 3 6 3 3 2 5 5 1 3 7 2 0 2 Facebook Instagram Twitter Linkedin Jan Feb Mar 0200 400600800 10001200 Page 168 of 171 Women 50.7% Men 49.3% 18-24 25-34 35-44 45-54 55-64 65+0 5 10 15 20 25 30 18-24 25-34 35-44 45-54 55-64 65+0.0 10.0 20.0 30.0 40.0 Men 54.3% Women 45.7% INSTAGRAM PAGE FOLLOWERS 1,288 FACEBOOK PAGE FOLLOWERS 851 PAGE LIKES (AGE & GENDER) LINKEDIN DEMOGRAPHIC (INDUSTRY) Page 169 of 171 ITEM NO. 13.1. AGENDA REPORT MEETING DATE: April 11, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Meetings from April 12 - May 31, 2024 Event Date Time Attendance By April SAWPA Commission Tue, Apr 16 9:30 AM CalMutuals Board Tue, Apr 16 2:00 PM Barbre PYLUSD Board Tue, Apr 16 6:00 PM Hernandez Yorba Linda City Council Tue, Apr 16 6:30 PM DesRoches Placentia City Council Tue, Apr 16 7:00 PM Hernandez Brea City Council Tue, Apr 16 7:00 PM Lindsey MWDOC Board Wed, Apr 17 8:30 AM Lindsey OCWA Meeting Wed, Apr 17 11:30 AM OCWD Board Wed, Apr 17 5:30 PM DesRoches MWDOC/OCWD Joint Planning Committee Wed, Apr 24 8:30 AM DesRoches/Lindsey OC San Board Wed, Apr 24 6:00 PM Hawkins YL Planning Commission Wed, Apr 24 6:30 PM Hawkins (As Needed) Board of Directors Regular Meeting Thu, Apr 25 8:30 AM ISDOC Quarterly Meeting Thu, Apr 25 11:30 AM Director Hosted Infrastructure Tour Fri, Apr 26 8:00 AM DesRoches May MWDOC Board Wed, May 1 8:30 AM Lindsey OCWD Board Wed, May 1 5:30 PM DesRoches WACO Fri, May 3 7:30 AM ACWA Spring Conference Tue, May 7 8:00 AM Hernandez SAWPA Commission Tue, May 7 9:30 AM PYLUSD Board Tue, May 7 6:00 PM Hernandez Yorba Linda City Council Tue, May 7 6:30 PM Barbre Brea City Council Tue, May 7 7:00 PM DesRoches Placentia City Council Tue, May 7 7:00 PM Hawkins ACWA Spring Conference Wed, May 8 8:00 AM Hernandez OC LAFCO Commission Wed, May 8 8:15 AM ACWA Spring Conference Thu, May 9 8:00 AM Hernandez Page 170 of 171 MWDSC Board Tue, May 14 1:00 PM Financial Review Group Tue, May 14 4:30 PM DesRoches/Lindsey MWDOC Board Wed, May 15 8:30 AM Lindsey OCWA Meeting Wed, May 15 11:30 AM OCWD Board Wed, May 15 5:30 PM DesRoches YL Planning Commission Wed, May 15 6:30 PM Hawkins (As Needed) YL Mayor's Prayer Breakfast Thu, May 16 6:45 AM Board of Directors Regular Meeting Thu, May 16 8:30 AM YLWD/City of YL Joint Agency Committee Mon, May 20 11:00 AM DesRoches/Lindsey SAWPA Commission Tue, May 21 9:30 AM CalMutuals Board Tue, May 21 2:00 PM Barbre Yorba Linda City Council Tue, May 21 6:30 PM Hawkins Placentia City Council Tue, May 21 7:00 PM Lindsey Brea City Council Tue, May 21 7:00 PM Hernandez OC San Board Wed, May 22 6:00 PM Hawkins YL Planning Commission Wed, May 29 6:30 PM Hawkins (As Needed) Board of Directors Regular Meeting Thu, May 30 8:30 AM ISDOC Quarterly Meeting Thu, May 30 11:30 AM As of April 4, 2024 Page 171 of 171